Common use of Authorization of the Shares and Warrants Clause in Contracts

Authorization of the Shares and Warrants. The Company has authorized, or before the Closing, as defined in paragraph 2.1 hereof, will have authorized, the issuance and sale of: (a) up to 5,000,000 shares of its Series E Preferred Stock (the "Shares") and (b) warrants (the "Warrants") to purchase up to 2,500,000 shares of the Company's Series E Preferred Stock with an exercise price of $2.00 per share (the "Warrant Shares"), at a purchase price of $2.00 per Share and Warrant Share (a "Unit"). As used herein, a Unit is comprised of one share of Series E Preferred Stock and one Warrant, in substantially the form set forth in EXHIBIT B hereto, to purchase one-half of a share of Series E Preferred Stock.