Common use of Annual Price Adjustment Clause in Contracts

Annual Price Adjustment. Each year on the anniversary of the date of issuance hereof (the “Anniversary Date”), if the average Closing Price on all of the Trading Days since the previous Anniversary Date is lower than the Exercise Price then in effect, then the Exercise Price shall be reduced to such average Closing Price; provided, however, that the Exercise Price shall not be reduced to less than $.005 per share. The calculation of the average Closing Price since the previous Anniversary Date shall include the Closing Price, if any, on the Anniversary Date on which such calculation is being made.