Common use of Issuance of Additional Stock Clause in Contracts

Issuance of Additional Stock. If the Company shall, at any time through the two year anniversary of the date that the Registration Statement is declared effective by the Commission, issue any rights, warrants, options or other securities convertible into or exchangeable for Common Stock (collectively, “Additional Stock”) without consideration or for a consideration per share less than the Exercise Price (including by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise), the Exercise Price in effect immediately prior to each such issuance shall forthwith be reduced to an amount equal to such lower purchase price for such Additional Stock (or in the case of options and similar securities, the consideration received for the option and to be received upon exercise of such option), or, if for no consideration, $.001; provided, however, that none of the following shall constitute Additional Stock: (a) shares of Common Stock; (b) rights, warrants, options or other securities convertible into or exchangeable for Common Stock, issued or issuable to employees, consultants or directors of the Company for the primary purpose of soliciting or retaining their employment or services directly or pursuant to a stock option plan or restricted stock plan approved by the Board of Directors of the Company and (c) shares of Common Stock of the Company issuable upon exercise of rights, warrants, options or other securities convertible into or exchangeable for Common Stock outstanding as of the date hereof.