Common use of Conversion Formula Clause in Contracts

Conversion Formula. At the option of the Company, for each annual conversion of Preferred to common, the stock shall be converted to either: Option 1- Average prior 30 days closing price on current quoted exchange so that market value of the common issued is one million five hundred thousand dollars. For example, if funding date is December 31, 2003, and if the 30-day average quoted closing price is $1 per share on December 31, 2004, King would receive 1,500,000 shares of common stock for his 250,000 shares of Preferred stock for a valuation conversion of 6 Common Shares for each Preferred Share. Option 2- The stock may be converted at a conversion ratio of 2 Common Shares for each Preferred share. For example, if the funding date is December 31, 2003, on December 31, 2004 the company may convert the 250,000 shares of Preferred Stock to 500,000 shares for Common Stock in the Company.

Conversion Formula. At the option of the Company, for each annual conversion of Preferred to common, the stock shall be converted to either: Option 1- Average prior 30 days closing price on current quoted exchange so that market value of the common issued is one million five hundred thousand dollars. For example, if funding date is December 31, 2003, and if the 30-day average quoted closing price is $1 per share on December 31, 2004, King MS would receive 1,500,000 shares of common stock for his 250,000 shares of Preferred stock for a valuation conversion of 6 Common Shares for each Preferred Share. Option 2- The stock may be converted at a conversion ratio of 2 Common Shares for each Preferred share. For example, if the funding date is December 31, 2003, on December 31, 2004 the company may convert the 250,000 shares of Preferred Stock to 500,000 shares for Common Stock in the Company.