Anti-dilution, Full Ratchet

Anti-dilution provisions that apply the lowest sale price for any shares of common stock (or equivalents) sold by the company after the issuing of an option or convertible security as being the adjusted option price or conversions ratio for existing shareholders. As an example, if a prior round of financing raised capital at € 2.00 per share with investors receiving full ratchet anti-dilution protection, and a subsequent round of financing was consummated at € 1.00 per share, the early round of investors would have the right to convert their shares at the € 1.00 price.