Common use of Phase 2 Clause in Contracts

Phase 2. The Warrant will become exercisable for a number of Warrant Shares that is equal to 33,051, constituting an additional 0.30% of the Company’s total outstanding ordinary shares as converted to ADSs issued and outstanding on the date hereof if and when the Company achieves aggregate net sales of US$1 million prior to the end of Phase 2.

Phase 2. The Warrant will become exercisable for a number of Warrant Shares that is equal to 33,051132,206, constituting an additional 0.301.20% of the Company’s total outstanding ordinary shares as converted to ADSs issued and outstanding on the date hereof if and when the Company achieves aggregate net sales of US$1 $10 million prior to the end of Phase 2.

Phase 2. The Warrant will become exercisable for a number of Warrant Shares that is equal to 33,05188,137, constituting an additional 0.300.80% of the Company’s total outstanding ordinary shares as converted to ADSs issued and outstanding on the date hereof if and when the Company achieves aggregate net sales of US$1 $5 million prior to the end of Phase 2.