Common use of Method of Exercise; Payment of Exercise Price Clause in Contracts

Method of Exercise; Payment of Exercise Price. In order to exercise this Warrant, the Holder hereof must surrender this Warrant to the Company, with the form on the reverse of or attached to this Warrant duly executed. With respect to payment of the Exercise Price, the Holder shall have two options: (1) having the Company withhold, from the total number of Warrant Shares that would otherwise be delivered to the Holder upon such exercise at the Exercise Price, that lower number of Warrant Shares issuable upon exercise of this Warrant with an aggregate Fair Market Value as of the last Business Day prior to such exercise equal to the in-the-money value of such Warrant Shares based upon the Exercise Price then in effect (a “Cashless Exercise”), or (2) payment in full of the Exercise Price then in effect for the number of Warrant Shares as to which this Warrant is submitted for exercise. To the Extent that the Holder shall elect to exercise this Warrant through a Cashless Exercise, the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing the product of (A-B) and (X) by (A), where: