Common use of Initial Warrant Clause in Contracts

Initial Warrant. On the Effective Date, Licensee shall also immediately grant and deliver to Medtronic or to a subsidiary designated by Medtronic, as an additional royalty payment, the warrant (the "Initial Warrant") attached as Exhibit C, entitling the holder to purchase 447,554 shares of common stock of Licensee, which Licensee represents is equal to 5% (five percent) of the total issued and outstanding common stock of Licensee as of the Effective Date. The per share exercise price of such Initial Warrant shall be the average closing price of Licensee's common stock for the twenty (20) trading days ending on and including the trading day immediately preceding the Effective Date. The Initial Warrant shall be immediately exercisable and shall expire four (4) years from the Initial Warrant's issuance. Licensee represents that the Initial Warrant conforms to and complies with the specifications set forth in this Section 3.2.