Statement of Warrant Exercise Inducement and Price Protection for 2006 Private Placement Warrant Holders
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Summary
This agreement outlines a special offer made by the company in March 2007 to holders of second tranche warrants from its 2006 Private Placement. Warrant holders who exercise their warrants under this arrangement receive 2.5 shares of common stock for every $2.00 paid (an effective price of $0.80 per share). Additionally, they are granted short-term price protection on these exercised warrants through September 30, 2007.
EX-10.205.3 6 a28598exv10w205w3.htm EXHIBIT 10.205.3 Exhibit 10.205.3
Exhibit 10.205.3
STATEMENT OF WARRANT EXERCISE INDUCEMENT AND PRICE PROTECTION
In March 2007 the Company unilaterally offered a Warrant Exercise and Price Protection arrangement to second tranche warrant holders of the 2006 Private Placement. The Warrant Exercise Price Protection arrangement included a special warrant exercise inducement whereby (i) the warrant holder would receive 2.5 shares of our common stock for each $2.00 of warrant exercise price paid to us (this equates to an effective price of $0.80 per share) and (ii) the warrant holder would receive short-term ratchet-style price protection (through September 30, 2007) on March 2007 warrant exercises.
