Common use of Class A Warrants Clause in Contracts

Class A Warrants. On each Closing Date, the Company will issue and deliver Class A Warrants to the Subscribers. One Class A Warrant will be issued to each Subscriber for each Share which would be issued to such Subscriber on any such Closing Date assuming the complete conversion of the Notes issued on such Closing Date at the Conversion Price in effect on such Closing Date assuming such Closing Date were a Conversion Date. The per Warrant Share exercise price to acquire a Warrant Share upon exercise of a Class A Warrant shall be equal to 120% of the closing bid price on the Initial Closing Date as reported by Bloomberg L.P. for the Principal Market (as hereinafter defined) for the last trading day preceding the Closing Date, subject to reduction as described in the Class A Warrant. In no event shall the exercise price be greater than $0.50. The Class A Warrants shall be exercisable until five (5) years after each Closing Date.