Reservation of Shares Clause Example from Business Contracts

Reservation of Shares. At all times during which this Note is outstanding, the Issuer will reserve for the Investor from its authorized and unissued Common Stock a number of shares of not less than five times the number of shares necessary to provide for the issuance of Common Stock upon the full conversion of this Note. The Issuer initially shall reserve 8,000,000 shares of Common Stock for the Investor. The Issuer represents that Olde Monmouth Stock Transfer Co., Inc. serves as the Issuer's transfer agent as of the ...Effective Date of this Note. The Issuer acknowledges that Olde Monmouth Stock Transfer Co., Inc. is a party to an irrevocable instruction and share reservation letter agreement between the Issuer, the transfer agent and the Investor regarding this Note. The Issuer agrees that the Issuer's use of Olde Monmouth Stock Transfer Co., Inc. as its transfer agent is material to the Investor, that the Issuer may not terminate or replace Olde Monmouth Stock Transfer Co., Inc. as the Issuer's transfer agent without obtaining the Investor's written consent thirty days in advance of such termination or replacement, and that the Issuer must provide the Investor, within five business days following the termination, resignation or replacement of Olde Monmouth Stock Transfer Co., Inc. or any subsequent transfer agent an irrevocable instruction and share reservation letter, executed by the Issuer and the new transfer agent, providing rights to the Investor identical to the rights provided to the Investor in the irrevocable instruction and share reservation letter between the Issuer, the Investor, and Olde Monmouth Stock Transfer Co., Inc. The Issuer further agrees that every provision in the irrevocable instruction and share reservation letter agreement are also material to the Investor such that the Investor would not otherwise enter into this Note agreement. View More