Issuance of Capital Stock. If and whenever the Company shall issue or sell any shares of Capital Stock without consideration or for a consideration per share less than the Exercise Price in effect immediately prior to the time of such issue or sale, then, forthwith upon such issue or sale, the Exercise Price shall be reduced to a price (calculated to the nearest cent) determined by dividing (x) an amount equal to the sum of (aa) the total number of shares of Capital Stock outstanding immediately prior to such issue or sale multiplied by the then existing Exercise Price, and (bb) the consideration, if any, received by the Company upon such issue or sale, by (y) the total number of shares of Capital Stock outstanding immediately after such issue or sale.
Appears in 5 contracts
Samples: Encap Investments L C, Encap Investments L C, Encap Investments L C
