Common use of GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK Clause in Contracts

GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK. For the first $1,000,000 portion of the Loans, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe to and purchase, from the Company, 45,000 fully paid and non-assessable shares of the Company's Series A Preferred Stock ("Preferred Stock") at a purchase price of $1.00 per share (the "Exercise Price") provided however, that from and after the effective date of the registration statement for the Company's initial public offering of its equity securities, the securities purchasable by the Warrantholder upon the exercise of this Warrant Agreement shall be shares of the Company's Common Stock ("Common Stock") which shares shall be purchasable by the Warrantholder in the same number that the Warrantholder would otherwise have been entitled to purchase had this Warrant Agreement remained exercisable for shares of the Company's Preferred Stock. From and after the effective date of the registration statement for the Company's initial public offering of its equity securities, the Warrantholder shall not have any further right pursuant to this Warrant Agreement to purchase shares of the Company's Preferred Stock. The shares of Preferred Stock or Common Stock that are issuable from time to time upon the exercise of this Warrant Agreement are sometimes referred to herein as the "Stock. In the event that the Company requests and the Warrantholder funds any portion of the additional $250,000 Advances between the first $1,000,000 and up to $1,500,000 as provided under the Loans, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe for and purchase, from the Company, for each Advance funded, 11,250 shares of Stock at the Exercise Price. The number and purchase price of such shares are subject to adjustment as provided in Section 8 hereof.

GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK. For the first $1,000,000 portion of the Loans, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe to and purchase, from the Company, 45,000 14,483 fully paid and non-assessable shares of the Company's Series A B Preferred Stock ("Preferred Stock") at a purchase price of $1.00 2.90 per share (the "Exercise Price") provided however, that from and after the effective date of the registration statement for the Company's initial public offering of its equity securities, the securities purchasable by the Warrantholder upon the exercise of this Warrant Agreement shall be shares of the Company's Common Stock ("Common Stock") which shares shall be purchasable by the Warrantholder in the same number that the Warrantholder would otherwise have been entitled to purchase had this Warrant Agreement remained exercisable for shares of the Company's Preferred Stock. From and after the effective date of the registration statement for the Company's initial public offering of its equity securities, the Warrantholder shall not have any further right pursuant to this Warrant Agreement to purchase shares of the Company's Preferred Stock. The shares of Preferred Stock or Common Stock that are issuable from time to time upon the exercise of this Warrant Agreement are sometimes referred to herein as the "Stock. In the event that the Company requests and the Warrantholder funds any portion of the additional $250,000 Advances between the first $1,000,000 and up to $1,500,000 2,000,000 as provided under the Loans, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe for and purchase, from the Company, for each Advance funded, 11,250 14,483 shares of Stock at the Exercise Price. In the event that the Company requests and the Warrantholder funds any portion of the additional Advances between the first $2,000,000 and up to $5,000,000 as provided under the Loans, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe for and purchase, from the Company, 16,206 shares of Stock at the Exercise Price for each increment of remaining $1,000,000 funded under the Loan. For purposes of calculating the number of shares issuable hereunder, after the first dollar of each $1,000,000 installment is funded, the applicable number of shares referred to above shall be issuable. The number and purchase price of such shares are subject to adjustment as provided in Section 8 hereof.

GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK. For Part I (as defined in the first $1,000,000 portion Loans) the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe to and purchase, from the Company, 160,000 fully paid and non-assessable shares of the Company's Series D Preferred Stock ("Preferred Stock") at a purchase price of $2.50 per share (the "Exercise Price"). In the event Part II is made available (as set forth in the Loans) and the Series E Preferred Stock financing closes after 90 days from the commitment date of the Series E Preferred Stock financing, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe to and purchase, from the Company, 45,000 160,000 fully paid and non-assessable shares of the Company's Series A Preferred Stock ("Preferred Stock") at a purchase price of $1.00 per share (the "Exercise Price") provided however, that from and after the effective date of the registration statement for the Company's initial public offering of its equity securities, the securities purchasable by the Warrantholder upon the exercise of this Warrant Agreement shall be shares of the Company's Common Stock ("Common Stock") which shares shall be purchasable by the Warrantholder in the same number that the Warrantholder would otherwise have been entitled to purchase had this Warrant Agreement remained exercisable for shares of the Company's Preferred Stock. From and after the effective date of the registration statement for the Company's initial public offering of its equity securities, the Warrantholder shall not have any further right pursuant to this Warrant Agreement to purchase shares of the Company's Preferred Stock. The shares of Preferred Stock or Common Stock that are issuable from time to time upon the exercise of this Warrant Agreement are sometimes referred to herein as the "Stock. In the event that the Company requests and the Warrantholder funds any portion of the additional $250,000 Advances between the first $1,000,000 and up to $1,500,000 as provided under the Loans, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe for and purchase, from the Company, for each Advance funded, 11,250 shares of Stock at the Exercise Price. In the event the Company utilizes Part II and the Series E Preferred Stock financing closes within 90 days from the commitment date of the Series E Preferred Stock financing, then the Borrower will execute and deliver to Warrantholder a Warrant Agreement, in form and substance satisfactory to Warrantholder, whereby the Company shall grant to Warrantholder the right to purchase that number of shares of Series E Preferred Stock equal to $400,000 divided by the price per share of said Series E shares. Such Warrant Agreement shall be delivered within fifteen (15) days of the close of the Series E Preferred Stock financing. The number and purchase price of such shares are subject to adjustment as provided in Section 8 hereof.