Common use of Net Issue Clause in Contracts

Net Issue. Election Holder may elect to receive, without payment by Holder of any additional consideration, Shares equal to the value of the “spread” on the Shares or any portion thereof by the surrender of the Warrant to the Company, together with a duly completed Net Issue Election Notice, in the form attached hereto as Exhibit B, at the principal office of the Company, in which event the Company shall issue to Holder such number of Shares as is computed using the following formula: X = Y (A – B) Where: X = The number of Shares to be issued to Holder pursuant to the net issue election; Y = The number of Shares in respect of which the net issue election is made; A = The fair market value (as determined below) of one Share at the time the net issue election is made; B = The Exercise Price in effect under this Warrant as of the date of the net issue election. For purposes of this Section 2.6, the fair market value of one Share as of a particular date shall be as determined in good faith by the Board of Directors of the Company.