Conversion Calculation. In connection with a Qualified Transaction, the Shares shall be converted into Qualified Stock in accordance with the following formula: A = B * [(C ÷ D) * E] A = the number of shares of Qualified Stock issuable to Investor in connection with the Qualified Transaction; B = the number of Shares purchased by Investor pursuant to this Agreement; C = $1.80; D = the price per share at which the Qualified Stock is sold to investors in the Qualified Financing; and E = 1.10. For the avoidance of doubt, the calculation in this Section 4.3 shall be performed in the following order: (i) divide C by D, (ii) multiply the amount in (i) by E, and (iii) multiply the amount in (ii) by B.
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Sources: Subscription Agreement (Arrowhead Research Corp), Subscription Agreement (Arrowhead Research Corp)