Common use of Adjustment of Hurdle Price Clause in Contracts

Adjustment of Hurdle Price. (a) To preserve the actual or potential economic value of the Class A Preferred Stock, if at any time after the date of this Amended and Restated Certificate of Incorporation (the "Certificate"), there shall be any change in the Common Stock, whether by reason of stock dividends, stock splits, recapitalizations, mergers, consolidations, combinations or exchanges of securities, split-ups, split-offs, spin-offs, liquidations, other similar changes in capitalization, any distribution or issuance of cash, assets, evidences of indebtedness or subscription rights, options or warrants to holders of Common Stock (other than regular cash dividends) or otherwise, then, in each such event the Board shall make such appropriate adjustments in the Hurdle Price (as defined below) such that following such adjustments, such event shall not have had the effect of increasing, reducing or limiting the benefits the holders of shares of Class A Preferred Stock would have had absent such event.

Appears in 3 contracts

Sources: Agreement and Plan of Reorganization and Merger (Video Sentry Corp), Agreement and Plan of Reorganization and Merger (Video Sentry Corp), Merger Agreement (Knogo North America Inc)