Common use of Additional Grants Clause in Contracts

Additional Grants. As soon as practicable after the closing of one or more issuances of equity in bona fide equity financings by the Company that are closed subsequent to the Initial Financing and prior to the thirty-six (36) month period after the Effective Date (the “Additional Financing”), the Company shall grant to the Executive a nonqualified stock option to purchase a number of shares of the Company’s common stock sufficient to cause the total amount such shares issued or issuable to the Executive upon full vesting and exercise of his Company stock options to equal 5.15% of the Company’s fully-diluted common stock (excluding the effects of any conversion of the (i) debt issued at the Initial Financing, (ii) the investor convertible subordinated debt issued in January 2014 or (iii) any other convertible debt that is issued prior to the thirty-six (36) month anniversary of the Effective Date) when taking into account the Initial Grant and this Additional Grant, provided that the Executive remains continuously and actively employed with the Company through the date that the Additional Grant is made. The Additional Grant shall have a per share exercise price equal to the fair market value of the Company’s common stock (as determined by the Board pursuant to the Plan) at the time of grant and be subject to the same vesting conditions as applicable to the Initial Grant. Notwithstanding the foregoing, the Additional Grant shall not be augmented by or apply to any portion of the Additional Financing in excess of Twenty Five Million Dollars ($25,000,000), provided, however, that such limitation shall not affect the increase in the Additional Grant to Executive in connection with the conversion of the convertible debt issued in the Initial Financing. For the avoidance of doubt, (i) a conversion of the convertible Executive’s Initials & Date subordinated debt issued in the Initial Financing into preferred or common stock, (ii) a conversion of the convertible subordinated debt issued by the Company in January 2014 into preferred or common stock, or (iii) the conversion, of any other convertible debt that is issued prior to the thirty-six (36) month anniversary of the Effective Date, in each such instance after such thirty-six (36) month period, shall be deemed to occur within such thirty-six (36) month period (prior to the Additional Financing) and will result in similar additional grants to the Executive at the time of such conversion(s), provided that the Executive remains continuously and actively employed with the Company through the date(s) that each actual additional grant is made.

Additional Grants. As soon as practicable after The Employee shall also have the closing opportunity to receive, annually for the fiscal year ending March 31, 1997 and for each of one or more issuances the next four (4) fiscal years (fiscal years ending March 31, 1998 through March 31, 2001, inclusive), additional stock options for an additional 25,000 shares of equity in bona fide equity financings by the Company that are closed subsequent to the Initial Financing and prior to the thirty-six (36) month period after the Effective Date Common Stock per fiscal year (the “"Additional Financing”Options"), the Company shall . The grant to the Executive a nonqualified stock option to purchase a number of shares of the Company’s common stock sufficient to cause the total amount such shares issued or issuable to the Executive upon full vesting and exercise of his Company stock options to equal 5.15% of the Company’s fully-diluted common stock (excluding the effects of any conversion of the (i) debt issued at the Initial Financing, (ii) the investor convertible subordinated debt issued in January 2014 or (iii) any other convertible debt that is issued prior to the thirty-six (36) month anniversary of the Effective Date) when taking into account the Initial Grant and this Additional Grant, provided that the Executive remains continuously and actively employed with the Company through the date that the Additional Grant is made. The Additional Grant Options shall have a per share exercise price equal to the fair market value of the Company’s common stock (as determined by the Board pursuant to the Plan) at the time of grant and be subject to the same vesting conditions as applicable satisfaction of certain benchmarks to be determined for each fiscal year by the Compensation Committee. The parties agree that no Additional Options will be granted in any given fiscal year until the benchmarks have been met for the grant of options for twenty-five thousand (25,000) shares of Common Stock. For example, if in a given fiscal year Employee has earned, pursuant to the Initial Grantapplicable benchmarks, options for thirty thousand (30,000) shares of Common Stock, that shall result in the issuance to Employee of Additional Options for five thousand (5,000) shares of Common Stock. Notwithstanding the foregoing, the Additional Grant shall not be augmented by or apply to any portion of the Additional Financing If in excess of Twenty Five Million Dollars ($25,000,000), provideda given fiscal year, however, Employee has earned, pursuant to the applicable benchmarks, options for only twenty thousand (20,000) shares of Common Stock, that such limitation shall not affect the increase result in the issuance to Employee of no Additional Grant Options. If in a given fiscal year Employee has earned, pursuant to Executive in connection with the conversion applicable benchmarks, options for sixty thousand (60,000) shares of the convertible debt issued Common Stock, that shall result in the Initial Financing. For issuance to Employee of Additional Options for twenty-five thousand (25,000) shares of Common Stock since the avoidance aggregate amount of doubt, (i) a conversion of the convertible Executive’s Initials & Date subordinated debt issued in the Initial Financing into preferred or common stock, (ii) a conversion of the convertible subordinated debt options required to be issued by the Company in January 2014 into preferred or common stockany given fiscal year pursuant to this provision is for twenty-five thousand (25,000) shares of Common Stock, or (iii) excluding the conversion, Initial Option and the Annual Option. Any Additional Options earned by the Employee shall be granted as of any other convertible debt the date that is issued prior the applicable benchmark had been met. The benchmarks pursuant to which the Additional Options shall be earned shall relate to the thirty-six (36) month anniversary goals of the Effective Date, in each such instance after such thirty-six (36) month period, Company's business plan. The benchmarks pursuant to which the grant of the Additional Options shall be deemed to occur within such thirty-six (36) month period (prior determined for the fiscal year ended March 31, 1997 are set forth in Schedule II attached hereto. Each fiscal year, the Compensation Committee shall prepare a new Schedule II, a copy of which shall be delivered to the Additional Financing) and will result in similar additional grants to the Executive at the time Employee on or before June 30th of such conversion(s), provided that the Executive remains continuously and actively employed with the Company through the date(s) that each actual additional grant is madeyear.