Common use of Stock Splits, Combinations and Dividends Clause in Contracts

Stock Splits, Combinations and Dividends. If the shares of Preferred Stock are subdivided or combined into a greater or smaller number of shares of Preferred Stock, or if a dividend is paid on the Preferred Stock in shares of Preferred Stock, the Conversion Price shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately increased in the case of combination of shares, in each such case by the ratio which the total number of shares of Preferred Stock outstanding immediately after such event bears to the total number of shares of Preferred Stock outstanding immediately prior to such event.

Appears in 3 contracts

Sources: Asset Purchase Agreement (WQN, Inc.), Convertible Note (WQN, Inc.), Asset Purchase Agreement (Voip Inc)