Common use of Warrant Compensation Clause in Contracts

Warrant Compensation. Warrant compensation shall be as follows: --------------------- 25,000 warrants to purchase USEG common stock at a price of $3.75 per share to be vested when the stock trades at a closing price above $4.00 per share for a period of 10 consecutive business days. 25,000 warrants to purchase USEG common stock at a price of $4.50 per share to be vested when USEG trades at a closing price above $5.00 per share for a period of 10 consecutive business days. 25,000 warrants to purchase USEG common stock at a price of $5.50 per share to be exercised when the stock trades at a closing price above $6.00 per share for a period of 10 consecutive business days. Note: All warrants not exercised shall expire three years from the date of this agreement. These warrants will be exercisable only for cash.