Common use of Exercise of Outstanding Warrants Clause in Contracts

Exercise of Outstanding Warrants. Holder delivered to the Company $877,998 on or before January 31, 1997, as payment of the exercise price of a portion of the Outstanding Warrants. Holder further agrees to deliver an additional $1,084,104.40 to the Company on or before the date that is 90 days subsequent to the effective date of the Registration Statement referred to in paragraph 5.1 of this Agreement to complete the exercise of the Outstanding Warrants. On receipt of the first payment, the Company delivered certificates representing 140,480 shares of common stock registered in the name of Holder. An additional 25,180 shares are held in reserve and will be issued on timely payment of the remaining amount. On receipt of the final payment on or before 90 days subsequent to the effective date of the Registration Statement referred to paragraph 5.1 of this Agreement, the Company shall issue a total of 229,728 shares, including the 25,180 shares held in reserve, for a grand total of 370,208 shares issued to Holder on exercise of the Outstanding Warrants.