Term Sheet Convertible Preferred Stock

This Term Sheet for Convertible Preferred Stock sets out a summary of the proposed terms under which an investor will purchase convertible preferred stock. This is a non-binding document and will be followed with definitive stock purchase agreements. The Term Sheet includes information regarding: i) number of shares to be purchased and the total, and per, share purchase price; ii) regarding dividends; iii) investor rights including voting, liquidation, preemptive and registration rights; iv) employee stock options; v) and restrictive covenants. (continued ...)