Common use of Exercise Conditions Clause in Contracts

Exercise Conditions. The exercise of this Warrant is subject to the satisfaction of at least one of the following conditions: (a) the Company’s completion of an equity and/or debt offering that shall have resulted in net proceeds to the Company, after the payment of all expenses related thereto, that would enable the Company to have sufficient capital to commence commercial production of the Company’s Mount Hope Project and to cover costs and expenditures during the construction period (the “Funding”); all as reasonably determined by the Company’s Board of Directors promptly following the Funding; or (b) the Company providing the Holder with notice regarding a Fundamental Change (as defined in Section 6 below), which notice shall be delivered on the same date that the Fundamental Change occurs (by no later than 9:00 am eastern standard time) (the “Special Notice”) in which case the Holder will be given the opportunity to exercise all or any part of this Warrant on the same day of, and immediately prior to, consummation of the Fundamental Change. Promptly following the determination by the Company’s Board of Directors that the Funding has been completed, the Company shall provide notice to the Holder that such determination has been made.