Common use of Strike Price Clause in Contracts

Strike Price. The exercise price for one-half of the shares subject to option shall be equal to (x)$640 million plus the amount of any equity infusion described in paragraph (i) above less the consolidated debt of Newco (as set forth in the third WHEREAS clause) as of the date of the Spin Off divided by (y) the number of issued and outstanding shares of stock of Newco as of the date of the Spin Off. For example, if the consolidated debt is $395 million and 100 million shares are outstanding, the option price will be $2.45 per share. The exercise price for the other half of the shares subject to option shall be the exercise price determined pursuant to the preceding sentence times 5.50 divided by 2.45.