Adjustments for Changes in Common Stock and Certain Other Events. (a) CHANGES IN CAPITALIZATION. The provisions of this SECTION 7(A) and SECTION 7(B) below are intended to implement Section 25 of the Plan. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any distribution to holders of Common Stock other than a normal cash dividend, (i) the number and class of securities and exercise price per share subject to each outstanding Option, and (ii) the exercise price of this Option shall be proportionally adjusted by the Company (or substituted Awards may be made, if applicable) to the extent the Board shall determine, in good faith, that such an adjustment (or substitution) is necessary and appropriate. If this Section 7(a) applies and Section 7(c) also applies to any event, Section 7(c) shall be applicable to such event, and this Section 7(a) shall not be applicable.
Appears in 2 contracts
Sources: Stock Option Agreement (Superior Galleries Inc), Incentive Stock Option Agreement (Superior Galleries Inc)