Common use of Adjustment of Exercise Price and Shares Clause in Contracts

Adjustment of Exercise Price and Shares. A. In the event, prior to the expiration of the Warrants by exercise or by their terms, the Company shall issue any of its Common Stock as a stock dividend or shall subdivide the number of outstanding shares of Common Stock into a greater number of shares, then, in either of such events, the Exercise Price in effect at the time of such action shall be reduced proportionately and the number of shares of Common Stock purchasable pursuant to the Warrants shall be increased proportionately. Conversely, in the event the Company shall reduce the number of its outstanding shares of Common Stock by combining such shares into a smaller number of shares, then, in such event, the Exercise Price in effect at the time of such action shall be increased proportionately and the number of shares of Common Stock at that time purchasable pursuant to the Warrants shall be decreased proportionately. Such stock dividend paid or distributed on the Common Stock in shares of any other class of the Company or securities convertible into shares of Common Stock shall be treated as a dividend paid or distributed in shares of Common Stock to the extent shares of Common Stock are issuable on the payment or conversion thereof.

Appears in 10 contracts

Samples: Securities Purchase Agreement (Ubroadcast, Inc.), Warrant Agreement (Usurf America Inc), Warrant Agreement (Usurf America Inc)

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Adjustment of Exercise Price and Shares. A. 9.1 In the event, prior to the expiration of the Warrants by exercise or by their terms, the Company shall issue any of its Common Stock Shares as a stock dividend or shall subdivide the number of outstanding shares of Common Stock Shares into a greater number of shares, then, in either of such events, the Exercise Price in effect at the time of such action shall be reduced proportionately and the number of shares of Common Stock Shares purchasable pursuant to the Warrants shall be increased proportionately. Conversely, in the event the Company shall reduce the number of its outstanding shares of Common Stock Shares by combining such shares into a smaller number of shares, then, in such event, the Exercise Price in effect at the time of such action shall be increased proportionately and the number of shares of Common Stock Shares at that time purchasable pursuant to the Warrants shall be decreased proportionately. Such stock dividend paid or distributed on the Common Stock Shares in shares of any other class of the Company or securities convertible into shares of Common Stock Shares shall be treated as a dividend paid or distributed in shares of Common Stock Shares to the extent shares of Common Stock Shares are issuable on the payment or conversion thereof.

Appears in 2 contracts

Samples: Warrant Agreement (Alliance Resources PLC), Warrant Agreement (Alliance Resources PLC)

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