Common use of Automatic Redemption Clause in Contracts

Automatic Redemption. The Company shall automatically redeem the Preferred Shares held by the Purchasers at a price of $3.00 per share if the Company fails to complete an Initial Public Offering at an offering price of $3.00 or higher per share within two (2) years from the Closing Date. In the event of an Automatic Redemption, the Purchasers shall retain ownership of the Warrants.

Automatic Redemption. The Company shall automatically redeem the Preferred Shares held by the Purchasers at a price of $3.00 per share if the Company fails to complete an Initial Public Offering at an offering price of $3.00 or higher per share within two (2) years from the Closing DateDate (the “Automatic Redemption”). In the event of an Automatic Redemption, the Purchasers shall retain ownership of the Warrants.