Common use of Warrant Consideration Clause in Contracts

Warrant Consideration. On the Closing Date, Buyer shall execute and deliver to CECG warrants (the “Warrants”) to purchase Buyer Common Stock, in substantially the form attached hereto as Exhibit B (the “Warrant Consideration”), having the following terms: (i) an option to purchase 224,607 shares of Buyer Common Stock exercisable at a price per share that is $0.50 in excess of the Market Price and that expires on the first anniversary of the Closing Date; (ii) an option to purchase 224,607 shares of Buyer Common Stock exercisable at a price per share that is $1.00 in excess of the Market Price and that expires on the second anniversary of the Closing Date; and (iii) an option to purchase 224,608 shares of Buyer Common Stock exercisable at a price per share that is $1.50 in excess of the Market Price and that expires on the third anniversary of the Closing Date. In the event that a warrant expiration date occurs on a day other than a Business Day, such expiration date shall instead be on the next succeeding Business Day. The value of the Warrant Consideration shall be reasonably determined by Buyer at Closing in accordance with GAAP.