Common use of Method of Exercise; Payment; Issuance of New Warrant Clause in Contracts

Method of Exercise; Payment; Issuance of New Warrant. (a) Subject to paragraph 1 hereof, the purchase right represented by this Warrant may be exercised by the Holder hereof, in whole or in part, by the surrender of this Warrant (with the notice of exercise form attached hereto as EXHIBIT A duly executed) at the principal office of the Company and (i) by the payment to the Company, by check, of an amount equal to the then applicable Warrant Price per share multiplied by the number of Shares then being purchased, or (ii) on or after the date on which the Company's Common Stock becomes publicly traded or in conjunction with a Merger or Consolidation, by surrender of the right to receive upon exercise hereof a number of Shares equal to the value (as determined below) of the Shares with respect to which this Warrant is being exercised, in which case the number of shares to be issued to the Holder upon such exercise shall be computed using the following formula: X = Y(A-B) ------ A Where: X = the number of shares of Common to be issued to the Holder. Y = the number of shares of Common with respect to which this Warrant is being exercised. A = the fair market value of one share of Common.