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r p . I , Brief History of Cetus Financing May 1972 $2 000 000 invested-by venture ca ital investors '. ' ti v F`.~ 1O4- September 1977 attached letter) . 4~ z ti~c.. ~:42% of the common stock tendered by share- ~o~6e,fi' o~-holders* at $15/share, for $1,974,195 (see attached letter); {° 0- ~ ~ for which they received 20,000 shares of preferred stock convertible on a share-for-share basis into common stock. Founders received 80,000 shares of nership. -& 'common stock for their interest in predecessor part- $3,000,000 invested by venture capital investors, mostly the original group; for which they received 10,000 shares of common stock. 161 to l.l:l. . 1° ~~ Cumulative preferred dividend changed to non-cumuLa- tive; in return conversion ratio~changed from 1:1 Common stock split 20:1. 1§~ ~° , <11' Result: Preferred stocknow convertible @'22:1. Cetus can redeem prefe red stock at $100/share after April 30, 1979. G 4b. 61% of the preferred'stock tendered by share- Standardv.bil Compainy (Indiana) purchased: a. A_``debenture.for $5,000,000, convertible into 4~split common stock (presently convertible at G,$18 81);;;~ ° holders* at $330/share, for $3, 321,120 ,(see a just prior to the Standard Oil investment. 1 o1 two founders of the company who had left the company February 1978-'aV National Distillers and Chemical Corporation pur- chased shares of common and preferred stock con- vertible vertible to a total of 482,224 common shares from *The founders tendered no shares. . .. . . . . . _ _ . . - , . `~'+' - . _ . ~ ~ .~..2TT'. .~..:::d`A,v.-:~...:G~:~..,..~d4-,...Ki.:-drf~.'*a.~a:4^ya~.u"ar.ri.:s~r~.,..:;.~.~.:.1,...c.i+ias;: .~~'~ t..:y .~ . T},t+c:~~.:.~?.'~;i~ i~l~r"~iJ•'ti`'~i~:S/ir°rX~~~335'i~~s..~iR~7Y.

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