Common use of Adjustment for Stock Splits and Stock Dividends Clause in Contracts

Adjustment for Stock Splits and Stock Dividends. The Exercise Price of this Warrant and the number of shares of Warrant Stock issuable upon exercise of this Warrant (or any shares of stock or other securities at the time issuable upon exercise of this Warrant) shall each be proportionally adjusted to reflect any stock dividend, stock split or reverse stock split, or other similar event affecting the number of outstanding shares of Common Stock (or such other stock or securities) provided, however, that if a reverse stock split occurs and the closing bid stock price of the Company on the date that the reverse stock split goes effective (the “New Price”) is more than 10% below the Exercise Price after giving effect to the reverse stock split, then the Exercise Price shall be reduced to the New Price. Each adjustment under this Section 4.1 shall become effective on the close of business on the date such dividend, stock split or reverse stock split, or other similar event becomes effective.