Common use of Net Exercise Rights Clause in Contracts

Net Exercise Rights. Notwithstanding the payment provisions set ------------------- forth in this Section 3, the holder may elect to receive the amount of Warrant Shares equal to the value (as determined below) of this Warrant by surrender of this Warrant at the principal office of the Company together with notice of such election, in which event the Company shall issue to the holder the number of shares of Common Stock determined by use of the following formula: X = Y(A-B) ------ A Where: X = the number of shares of Common Stock to be issued to the holder. Y = the number of Warrant Shares subject to this Warrant. A = the Fair Market Value (as defined below) of one (1) Warrant Share. B = the Exercise Price per share of the Warrant Shares. For purposes of this Section 3, fair market value of a share as of a particular date shall mean: