Adjustment of Option Shares Sample Clauses
The Adjustment of Option Shares clause defines how the number of shares subject to an option may be modified in response to certain corporate events. Typically, this clause applies when actions such as stock splits, mergers, or dividends occur, which could otherwise alter the value or proportion of the option holder's interest. By specifying the method for adjusting the number of shares or the exercise price, the clause ensures that the economic value of the options remains consistent and fair, thereby protecting both the company and the option holder from unintended consequences of corporate changes.
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Adjustment of Option Shares. The number of Option Shares shall be subject to adjustment as follows:
(a) If the Company:
(i) pays a dividend or makes a distribution on its Common Stock in shares of its Common Stock;
(ii) subdivides its outstanding shares of Common Stock into a greater number of shares;
(iii) combines its outstanding shares of Common Stock into a smaller number of shares;
(iv) makes a distribution on its Common Stock in shares of its capital stock other than Common Stock; or
(v) issues by reclassification of its Common Stock any shares of its Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the surviving corporation), then the Option Shares immediately prior to such action shall be adjusted to apply to the aggregate number and kind of shares of Common Stock (or such shares of capital stock other than Common Stock) of the Company that the Company would have owned immediately following such action if the Company had exercised the Option immediately prior to such action.
(b) The adjustment shall become effective on the record date in the case of a dividend or distribution and on the effective date in the case of a subdivision, combination or reclassification.
(c) Whenever the number of Option Shares is adjusted under this Section 5, the Company shall promptly mail to the Stockholder a notice of such adjustment.
Adjustment of Option Shares. In the event of any stock split, reverse stock split or stock dividend occurring prior to Tadeo's exercising the Option, t▇▇ ▇▇▇▇er of Option Shares shall be adjusted to preserve the proportionate ownership interest represented by the Option Shares immediately prior to the occurrence of such event. For so long as the Option remains unexercised and has not been terminated, BTR shall give Tadeo 15 days notice prior to th▇ ▇▇▇lier of the record date or effectiveness date of any event which requires such an adjustment. BTR shall additionally provide Tadeo with 15 days notice prior ▇▇ ▇▇e earlier of the record date or the effectiveness date should BTR (1) declare a dividend of cash, evidences of indebtedness, or warrants or other rights of subscription for the purchase of securities or evidences of indebtedness, or (2) resolve to reorganize its capital, reclassify its capital stock, consolidate or merge with or into another corporation, or sell, transfer or otherwise dispose of all or substantially all its property, assets or business.
Adjustment of Option Shares. Prior to any public offering of ELCOM --------------------------- shares, if the outstanding common shares of Elcom Technologies Corporation, are changed into or exchanged for a different number or kind of shares or other securities of Elcom Technologies Corporation or of another corporation, whether through reorganization, share split-up, combination of shares, merger or consolidation, then these shares shall be substituted for each common share of Elcom Technologies Corporation then subject to this Stock Option Agreement. The number and kinds of shares or other securities into which each such ELCOM share is so changed or for which each ELCOM share is exchanged shall be at the sole discretion of ELCOM.
Adjustment of Option Shares structure of the Company without consideration, the number of Shares subject to this Option and the Exercise Price shall be proportionately adjusted, subject to any required action by the Board or stockholders of the Company and compliance with applicable securities laws; provided, however, that fractions of a Share shall not be issued but shall either be paid in cash at Fair Market Value or shall be rounded down to the nearest Share, as determined by the Committee; and provided further that the Exercise Price of this Option may not be decreased to below the par value of the Shares.
Adjustment of Option Shares. The number of Option Shares purchasable pursuant to this Agreement shall be subject to adjustment from time to time upon the happening of certain events, as follows:
Adjustment of Option Shares. If the outstanding common shares of The Company are changed into or exchanged for a different number or kind of shares or other securities of The Company or of another corporation, whether through reorganization, recapitalization, shares split up, combination of sales, merger or consolidation, there shall be substituted for each common share of The Company then subject to this option the number and kinds of shares of other securities which each such outstanding common share is so changed or for each such share as exchanged. Thereafter, the words "common shares of The Company" shall mean such substituted shares or other securities and the option price as set forth in Paragraph (1) above shall apply to and be the option price for a the shares or other securities substitute for each such common share of The Company
Adjustment of Option Shares. The foregoing number of shares covered by any Option shall be appropriately adjusted in the event of a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or similar change in the capital structure of the Bank that occurs between the Effective Date of this Agreement and the date on which the Option is granted.
Adjustment of Option Shares. In the event that the outstanding common shares of the Company shall be changed into or exchanged for a different number or kind of shares or other securities of the Company or of another corporation, whether through reorganization, recapitalization, share split-up, combination of shares, merger, consolidation, or otherwise, there shall be substituted for each common share of the Company then subject to the option hereinbefore granted the number and kind of shares or other securities into which each such outstanding common share shall be so changed or for which each such share shall have been changed. Thereafter the words "common shares of the Company" as used in this Agreement shall be construed to mean such substituted shares or other securities and the option price for each common share of the Company as specified in paragraph 1 shall apply to and be the option price for the shares or other securities substituted for such common shares of the Company.
Adjustment of Option Shares. In the event the Company shall subdivide or split its outstanding common stock into a smaller or larger number of shares or combine its outstanding common stock into a smaller number of shares, the denominator used in Section 2 to determine the number of Option Shares that KM and TM shall be entitled to receive upon exercising their Put Options shall be adjusted so that KM and TM thereafter shall be entitled to receive upon exercising their Put Options that number of shares of the Company's common stock which it would have been entitled to receive had such Put Option been exercised immediately prior to the happening of such event.
Adjustment of Option Shares. If the outstanding common shares of NADA are changed into or exchanged for a different number or kind of shares or other securities of another corporation, whether through reorganization, recapitalization, shares split up, combination of sales, merger or consolidation, there shall be substituted for each common share of NADA then subject to this option the number and kinds of shares of other securities which each such outstanding common share is so changed or for each such share as exchanged. Thereafter, the words "common shares of NADA" shall mean such substituted shares or other securities and the option price of $.087 for each common share of NADA as specified in paragraph 1 shall apply to and be the option price for all the shares or other securities substituted for each such common share of NADA.