Common use of Transferability and Form of Warrant Clause in Contracts

Transferability and Form of Warrant. (a) The Warrants shall not be separately registered, but shall be a part of the Units. The Shares and Warrants are not separately transferable from the Units. A Warrant may be transferred only simultaneously with a transfer of the Share to which the Warrant relates as part of the Unit, which transfer shall be recorded on the Unit register maintained by the Bank. (b) Each Certificate shall bear a legend referencing the Warrants. The Bank shall hold a master warrant certificate (the "Master Warrant Certificate") which shall list the number of Warrants that accompany each Certificate. The number of shares of Common Stock a holder of a Unit (each a "Holder") will be entitled to purchase (shown as a conversion ratio) is computed by multiplying the number of Units a Holder purchased in the Offering by the conversion ratio. This conversion ratio is based on the number of Units subscribed for in the Offering (862,289). The conversion ratio has been set at .3221 shares of Common Stock for each Warrant. The Master Warrant Certificate shall be substantially as set forth in Exhibit A attached hereto.