Common use of Subdivision and Combination Clause in Contracts

Subdivision and Combination. (i) In case the Company shall at any time subdivide or combine the outstanding Shares, the Exercise Price shall forthwith be proportionately decreased in the case of subdivision or increased in the case of combination. Such (combination) subdivision may consist of (reverse) stock splits, stock dividends, reclassifications or any other comparable transaction by which Shares or other capital stock are (combined into a smaller number of shares or) issued to holders of such Shares or other capital stock by virtue of such share ownership. (ii) Upon each adjustment of the Exercise Price pursuant to the provisions of this Section 1.3, the number of shares of Option Stock issuable upon the exercise at the adjusted exercise price of the Investor's option shall be adjusted to the nearest whole number of shares by multiplying the number of shares of Option Stock issuable upon exercise of such option prior to the adjustment by a fraction, the numerator of which is the Exercise Price in effect immediately prior to such adjustment and the denominator of which is the adjusted Exercise Price. (iii) For the purpose of this Section 1.3, the term "Shares " shall mean (i) the Shares as defined in the recitals hereto, or (ii) any other class of stock resulting from successive changes or reclassifications of such Shares consisting solely of changes in par value, or from par value to no par value, or from no par value to par value.