Common use of Weighted Average Adjustment After 12 Months Clause in Contracts

Weighted Average Adjustment After 12 Months. If the Company issues Additional Shares after the first anniversary date of the Warrant and the consideration per Additional Share (determined pursuant to Section 9) is less than the Warrant Price in effect immediately before such Issue (a “Diluting Issuance”), the Warrant Price in effect immediately before such Issue shall be reduced, concurrently with such Issue, to a price (calculated to the nearest hundredth of a cent) determined by multiplying the Warrant Price by a fraction: (a) the numerator of which is the amount of Shares outstanding immediately before such Issue plus the amount of Shares that the aggregate consideration received by Company for the Additional Shares would purchase at the Warrant Price in effect immediately before such Issue, and (b) the denominator of which is the amount of Shares outstanding immediately before such Issue plus the number of such Additional Shares.