Warrants

Each warrant entitles the holder to purchase 2,222 shares of common stock at an exercise price of $0.50 per share, subject to adjustment. The warrants will be immediately exercisable and will expire 5 years from the date of issuance. The warrants will be exercisable for cash and, solely during any period when a registration statement for the exercise of the warrants is not in effect, on a cashless basis. We may redeem the warrants for $0.01 per warrant if, among other factors, the volume-weighted average price of our common stock is above $1.50 for ten consecutive trading days, provided that we may not do so prior to one year after the issuance date.