Common use of Rights to Purchase Shares Clause in Contracts

Rights to Purchase Shares. In the event that the Company shall issue shares of common stock, or rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase shares of common stock (excluding (A) shares, rights, options, warrants, or convertible or exchangeable securities outstanding or issued on the date of the original issuance of Consultant Shares hereunder or issued in any of the transactions described in Section 3(a), Section 3(b), or Section 3(3) above, (B) shares issued upon the exercise of such rights, options or warrants or upon conversion or exchange of such convertible or exchangeable securities, and (C) the Consultant Shares, at a price per share less than $0.20 per share, then the Consultant Shares shall be adjusted so that the number shall equal the number determined by multiplying the number of Consultant Shares in effect immediately prior thereto by a fraction, (i) the numerator of which shall be the sum of (A) the number of shares of common stock outstanding immediately prior to such sale and issuance plus (B) the number of shares of common stock which the total consideration received for such sale or issuance would purchase at such $0.20 per share, and (ii) the denominator of which shall be the total number of shares of common stock outstanding immediately after such sale and issuance. Such adjustment shall be made successively whenever such an issuance is made.