Common use of Number and Price of Shares Clause in Contracts

Number and Price of Shares. (a) The Holder shall have the right to purchase a number of Shares equal to sixty-two thousand five hundred dollars ($62,500), or 5% of the $1,250,000 principal amount of the Note by and between the Company and the Holder, divided by the Exercise Price, as defined in Section 1(b) below. (b) The exercise price per Share ("Exercise Price") shall be equal to: (i) the price at which the Company sells the Shares in an equity financing completed on or before July 11, 1998, or (ii) if such a financing is not completed by July 11, 1998, the average of the price at which the Company sells the Shares and the original issue price of the Series A Preferred Stock of $.8718. (c) An example of this formula is as follows: if the Company completes a Series B Preferred Stock financing at $1.75 per share, the number and Exercise Price of the Shares would be: (i) $62,500/ $1.75 = 35,714 Shares, exercisable at $1.75 per share, if the financing is completed within 120 days of the date of this Warrant; or (ii) $62,500/ ((1.75+ .8718)/2) = 62,500/ $1.3109 = 47,677 Shares, exercisable at $1.3109 per share, if the financing is completed more than 120 days after the date of this Warrant. (d) In the event the Company does not complete a round of Preferred Stock financing within 180 days of the date of this Warrant, this Warrant shall be exercisable for shares of the Company's Series A Preferred Stock, and all references to the Shares and the Series B Preferred Stock herein shall mean the Series A Preferred Stock of the Company. The Exercise Price shall be $.8718 for any Series A Preferred Stock issued hereunder.

Appears in 1 contract

Sources: Series B Preferred Stock Purchase Warrant (2bridge)

Number and Price of Shares. (a) The Holder shall have the right to purchase a number of Shares equal to sixtyeighty-one thousand two thousand five hundred fifty dollars ($62,50081,250), or 56.5% of the $1,250,000 principal amount of the Note by and between the Company and the Holder, divided by the Exercise Price, as defined in Section 1(b) below. (b) The exercise price per Share ("Exercise Price") shall be equal to: (i) the price at which the Company sells the Shares in an equity financing completed on or before July 11, 1998, or (ii) if such a financing is not completed by July 11, 1998, the average of the price at which the Company sells the Shares and the original issue price of the Series A Preferred Stock of $.8718. (c) An example of this formula is as follows: if the Company completes a Series B Preferred Stock financing at $1.75 per share, the number and Exercise Price of the Shares would be: (i) $62,500/ 81,250/ $1.75 = 35,714 46,428 Shares, exercisable at $1.75 per share, if the financing is completed within 120 days of the date of this Warrant; or (ii) $62,500/ 81,250/ ((1.75+ .8718)/2) = 62,500/ 81,250/ $1.3109 = 47,677 61,980 Shares, exercisable at $1.3109 per share, if the financing is completed more than 120 days after the date of this Warrant. (d) In the event the Company does not complete a round of Preferred Stock financing within 180 days of the date of this Warrant, this Warrant shall be exercisable for shares of the Company's Series A Preferred Stock, and all references to the Shares and the Series B Preferred Stock herein shall mean the Series A Preferred Stock of the Company. The Exercise Price shall be $.8718 for any Series A Preferred Stock issued hereunder.

Appears in 1 contract

Sources: Series B Preferred Stock Purchase Warrant (2bridge)