Additional Warrant Issuances Sample Clauses

Additional Warrant Issuances. If any amounts shall remain outstanding under the Notes as of the following dates, then the Company shall issue to the Purchasers (pro rata based on the number of Shares set forth opposite such Purchaser's name on Schedule I attached hereto) warrants, substantially in the form of Exhibit B hereto, to purchase, at an exercise price of $.01 per share, the number of shares of Common Stock determined by multiplying the Base Number set forth opposite such date below by a fraction, the numerator of which is the aggregate amount then outstanding under each of the Notes and the denominator of which is $10,000,000: Date Base Number ---- ----------- December 31, 1997 75,000 June 30, 1998 75,000 December 31, 1998 50,000 Any warrants issued pursuant to this Section 2.7 shall be in the form of, entitled to the same rights as, and subject to the same conditions as, the Warrants and all representations contained in Article 5 hereof with respect to the warrants shall be true and correct with respect to the warrants issued pursuant to this Section 2.7. At the earlier of the time warrants are issued pursuant to this Section 2.7 or the consummation of an Initial Public Offering, the Company shall reserve for issuance the number of shares of Common Stock issuable upon exercise of such warrants. No issuance of warrants pursuant to this Section 2.7 shall be deemed to reduce the amounts then outstanding under the Notes.

Additional Warrant Issuances. (a) In the event that the Notes are still outstanding and have not been paid in full on the following dates, the Purchasers shall be entitled to additional Warrants, as follows: i. If after twelve (12) months from the Issuance Date (as defined in the Note) the Note remains outstanding and unsatisfied, then the Purchaser shall be issued an additional Warrant exercisable into such number of shares of Common Stock equal to 50% of the number of shares of Common Stock that Purchaser's Subscription Amount would be convertible into if such Note converted into Common Stock at $0.10, subject to any applicable adjustment for stock splits, per share. ii. If after fifteen (15) months from the Issuance Date (as defined in the Note) the Note remains outstanding and unsatisfied, then the Purchaser shall be issued an additional Warrant exercisable into such number of shares of Common Stock equal to 25% of the number of shares of Common Stock that Purchaser's Subscription Amount would be convertible into if such Note converted into Common Stock at $0.10, subject to any applicable adjustment for stock splits, per share. iii. If after eighteen (18) months from the Issuance Date (as defined in the Note) the Note remains outstanding and unsatisfied, then the Purchaser shall be issued an additional Warrant exercisable into such number of shares of Common Stock equal to 25% of the number of shares of Common Stock that Purchaser's Subscription Amount would be convertible into if such Note converted into Common Stock at $0.10, subject to any applicable adjustment for stock splits, per share. (b) The additional Warrant issuances provided in this Section 4.1 shall be cumulative, provided, however, that any reduction in the outstanding principal amount of the Notes during any period prior to any of the applicable trigger dates shall proportionately adjust any issuances of additional warrants under each appropriate subsection.