Common use of Exercise of the Warrants Clause in Contracts

Exercise of the Warrants. At the discretion of the Warrant holder, each Warrant may be exercised into shares of Common Stock at an exercise price of Forty Five Cents ($0.45) per share. Warrant Holders may elect to cancel any outstanding debt and/or accrued interest, including the Notes, as payment of the exercise price of the Warrant. Warrant Holders may also exchange other securities of Borrower held at the market price thereof in payment of the exercise price of Warrants. The Warrants shall expire on the earlier of (i) six years from the date of repayment of the Notes issued together with such Warrant(s) or (ii) 10 years from the date of original issuance thereof. The Warrants shall be detachable the Notes and may be exercised, transferred or sold independently of the Notes (subject to applicable law).