Common use of Redemption of Warrants Clause in Contracts

Redemption of Warrants. The Warrants are redeemable by the Company at $0.05 per Warrant (the "Redemption Price"), upon 20 days notice, at the discretion of the Company, when the following three conditions have been met: (i) a registration statement has been filed under the Securities Act covering the resale of the Shares, Warrants and the Warrant Shares, and such registration statement is effective, (ii) a public market has developed for the Common Stock, and (iii) the bid price of the Common Stock has closed at $4.50 or higher for ten consecutive trading days. Redemption of the Warrants shall be automatically effective and the Warrants shall be deemed cancelled upon the Company's delivery of the Redemption Price to the Holder in accordance with this Agreement. Upon receipt of the Redemption Price, Holder agrees to return any evidence of the Warrants to the Company.