The “Conversion Ratio” is the rate at which one class of Securities can convert into another class of Securities. Most often, the Conversion Ratio applies to the conversion of shares of Preferred Stock into shares of Common Stock. The Conversion Ratio usually is set at 1:1 when shares of Preferred Stock are purchased from the Corporation. The Conversion Ratio then is subject to Anti-Dilution Adjustment based on the Corporation’s subsequent sale or issuance of certain shares of Capital Stock at prices below the price initially paid for such shares of Preferred Stock. As a result of the Anti-Dilution Adjustment, the Conversion Ratio is increased accordingly, so that one share of Preferred Stock now will be convertible into more than one share of Common Stock.