Adjustments to the Warrant Number. The Warrant Number will be subject to adjustment from time to time as described in Subsections B, C and D below. If and whenever on or after the date of this Agreement, the Company issues or sells, or in accordance with Subsection B is deemed to have issued or sold, any Common Shares of the Company (other than as described in Subsection C or Subsection D) for a consideration per share less than the Current Market Value in effect immediately prior to such issuance or sale, or deemed issuance or sale, then forthwith upon such issuance or sale, or deemed issuance or sale, the Warrant Number in effect will be adjusted by multiplying such Warrant Number by a fraction, (x) the numerator of which shall be the total number of Common Share Equivalents outstanding as determined immediately after such issuance or sale, or deemed issuance or sale (including taking into account those deemed to have been issued pursuant to Subsection B below in such transaction), and (y) the denominator of which shall be an amount equal to the sum of (A) the number of Common Share Equivalents outstanding immediately prior to such issuance or sale, or deemed issuance or sale, plus (B) the number of Common Shares which the aggregate consideration, if any, received by the Company for such shares would buy at the Current Market Value thereof, as of the date immediately prior to such issuance or sale, or deemed issuance or sale; provided, however, that Common Shares issued or sold (or deemed issued or sold) without consideration shall be deemed to have been issued or sold for $.001 per share.
