Common use of Warrant Issuance Clause in Contracts

Warrant Issuance. In consideration of WATERS' prior research and development activities, in the event VARIAGENICS completes an initial public offering ("IPO") on or before August 31, 2000, VARIAGENICS will issue to WATERS warrants to purchase a number of shares of VARIAGENICS Common Stock determined by the following formula: N = .15 ($7,500,000 DIVIDED BY P) Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential treatment under Rule 406 of the Securities Act. Where N is the number of shares covered by the warrants, and P is the price at which shares are offered to the public in the IPO ("IPO Price") Such warrants will be exercisable at a price equal to the IPO Price, will be immediately exercisable on issuance and will be exercisable for a period of five (5) years and will be in the form of Warrant attached hereto at Exhibit 4.7.