Common use of Terms of the Warrants Clause in Contracts

Terms of the Warrants. Subject to the terms and conditions set forth herein and in any Ancillary Agreement the Warrants shall be exercised in accordance with the following provisions: (i) Warrants for the purchase of 20 million shares shall be exercisable at $.50 per share; these Warrants shall be exercisable for a period of 360 days after execution of this Agreement. (ii) Warrants for the purchase of 30 million shares shall be exercisable at $ 1.50 per share; these Warrants shall be exercisable for a period of 540 days after execution of this Agreement. (iii) Warrants for the purchase of 10 million shares shall be exercisable at $2.50 per share; these Warrants shall be exercisable for a period of 720 days after execution of this Agreement. The Warrants are not assignable, nor can they be resold, absent the parties’ execution of an Ancillary Agreement permitting such assignment or sale. Pursuant to this Agreement, Trust is to provide a minimum of $40,000,000 and a maximum of $80,000,000 in funding to the Company by exercise of the Warrants. Further pursuant to this Agreement or any Ancillary Agreement, in the event that Trust fails to exercise Warrants sufficient to generate the minimum funding provided herein within 540 days following execution of this Agreement, Trust shall, upon demand, return all shares held by it to Company, Dupont and Xxxxxx,pro rota, and return all unexercised Warrants to the Company for cancellation or resale. In furtherance of this provision, the parties agree that any transfer of the Shares during the period this Agreement is in effect shall require a counter-party signature from an Officer of the Company. Company specifically disclaims any manner of security interest in the Shares or Warrants, reserving the right only to return of the Shares in the event of a funding obligation failure. The parties expressly reserve the right, without obligation, to renegotiate the terms of exercise of the Warrants, whether as to exercise price or period, in the event of the establishment and based on the condition (price and volume) of a public market for Company’s common stock.

Terms of the Warrants. Subject to the terms and conditions set forth herein and in any Ancillary Agreement the Warrants shall be exercised in accordance with the following provisions: (i) Warrants for the purchase of 20 million shares shall be exercisable at $.50 per share; these Warrants shall be exercisable for a period of 360 days after execution of this Agreement. (ii) Warrants for the purchase of 30 million shares shall be exercisable at $ $1.50 per share; these Warrants shall be exercisable for a period of 540 days after execution of this Agreement. (iii) Warrants for the purchase of 10 million shares shall be exercisable at $2.50 per share; these Warrants shall be exercisable for a period of 720 days after execution of this Agreement. The Warrants are not assignable, nor can they be resold, absent the parties’ execution of an Ancillary Agreement permitting such assignment or sale. Pursuant to this Agreement, Trust is to provide a minimum of $40,000,000 in funding to Company and a maximum of $80,000,000 in funding to the Company by exercise of the Warrants. Further pursuant to this Agreement or any Ancillary Agreement, in the event that Trust fails to exercise Warrants sufficient to generate the minimum funding provided herein within 540 days following execution of this Agreement, Trust shall, upon demand, return all shares held by it to Company, Dupont and Xxxxxx,, pro rotarata, and return all unexercised Warrants to the Company for cancellation or resale. In furtherance of this provision, the parties agree that any transfer of the Shares during the period this Agreement is in effect shall require a counter-party signature from an Officer of the Company. Company specifically disclaims any manner of security interest in the Shares or Warrants, reserving the right only to return of the Shares in the event of a funding obligation failure. The parties expressly reserve the right, without obligation, to renegotiate the terms of exercise of the Warrants, whether as to exercise price or period, in the event of the establishment and based on the condition (price and volume) of a public market for Company’s common stock.