CONVERTED WARRANT Clause Samples

CONVERTED WARRANT. At its option, the Holder may request pursuant to this Section 8 that the Company exchange the Warrant or any portion thereof for a particular number of Warrant Shares by delivering to the Holder, without payment by the Holder of the exercise price per share of any cash or other consideration, that number of shares of Common Stock equal to the quotient obtained by dividing the Net Value (as hereinafter defined) of the number of Warrant Shares with respect to which the Warrant is being exercised (the "CONVERTED WARRANT SHARES") by the Fair Market Value (as determined (i) by reference to the average of the last sales price, or bid price if there was no sale, for the 20 most recent trading days if the Common Stock is publicly traded or (ii) by the Board of Directors acting in good faith if the Common Stock is not publicly traded) of a single share of Common Stock, determined in each case as of the close of business on the date of exercise of the Warrant. The "Net Value" of the Converted Warrant Shares will be determined by subtracting the aggregate exercise price (per share) of the Converted Warrant Shares from the aggregate Fair Market Value of the Converted Warrant Shares. All other provisions of the Warrants will apply to any such exchange of the Warrants pursuant to the terms of this Section 8.