Common use of Failure to Register Clause in Contracts

Failure to Register. If the Company fails to register the Securities as required under the terms of this Agreement, then the strike price of both the "A" Warrants and the "B" Warrants shall be reduced as set forth below, and the Purchase Warrants may be exercised at anytime on a "cashless exercise" basis permanently. If the failure to effect and maintain registration of the Securities continues after March 31, 2001, the strike price shall be reduced by 25%. If such failure continue or occurs after June 30, 2001, the strike price shall be permanently reduced to $0.25.

Failure to Register. If the Company fails to register the Securities as required under the terms of this Agreement, then the strike price of both the "A" Warrants and the "B" Warrants shall be reduced as set forth below, and the Purchase Warrants may be exercised at anytime on a "cashless exercise" basis permanently. If the failure to effect and maintain registration of the Securities continues after March 31, 2001, the strike price shall be reduced by 25%. If such failure continue continues or occurs after June 30, 2001, the strike price shall be permanently reduced to $0.25.