Common use of Warrant Solicitation Fees Clause in Contracts

Warrant Solicitation Fees. The Company hereby engages Granite, on a non-exclusive basis, as its agent for the solicitation of the exercise of the Warrants. The Company will (i) assist Granite with respect to such solicitation, if requested by Granite, and (ii) at Granite's request, provide Granite, and direct the Company's transfer and warrant agent to provide to Granite, at the Company's cost, lists of the record and, to the extent known, beneficial owners of, the Warrants. Commencing one year from the Effective Date, the Company will pay Granite a commission of five percent of the exercise price of the Warrants for each Warrant exercised within three (3) business days of the date the exercise price is paid, on the terms provided for in the Warrant Agreement, only if permitted under the rules and regulations of the NASD and only to the extent that an investor who exercises his Warrants specifically designates, in writing, that Granite solicited his exercise. Granite may engage sub-agents in its solicitation efforts. The Company agrees to disclose the arrangement to pay such solicitation fees to Granite in any prospectus used by the Company in connection with the registration of the shares of Common Stock underlying the Warrants.