Common use of APPRECIATION RIGHT Clause in Contracts

APPRECIATION RIGHT. If and when the Company has consummated (i) a public offering of its Equity Securities pursuant to a general form of registration under the Securities Act, (ii) the acquisition of the Company by another Entity by means of any transaction or series or related transactions (including, without limitation, any reorganization, merger or consolidation) unless the Company's shareholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale, hold, directly or indirectly, at least fifty percent (50%) of the voting power of the surviving or acquiring entity, or (iii) the sale of all or substantially all of the assets of the Company, then in lieu of exercising this Warrant as specified in Sections 2 and 3 above, the Warrantholders may at the Warrantholders' option, require the Company to pay it an amount of cash equal to the Fair Value of the Common Stock issuable upon exercise of this Warrant less the Exercise Price. Upon the Warrantholders' exercise of this option, the Company shall promptly wire transfer to the Warrantholders such amount in immediately available funds as is required under this Section 4(b), but in no event later than five (5) business days after the exercise of such option, in immediately available funds.