Common use of Adjustments for Material Changes Clause in Contracts

Adjustments for Material Changes. In the event that there is any material change in the Common Shares of DynaMotive through the declaration of stock dividends or stock splits or consolidations or exchanges of shares, the Options shall be deemed to have been exchanged by DynaMotive for new options to purchase a number of Common Shares at an exercise price which is adjusted appropriately (the "New Options") such that the amount by which the total value of the Common Shares under the New Options exceeds the total price to acquire such shares under the New Options, immediately after such a material change, is not greater than nor materially less than such an amount would have been under the original Options, immediately prior to such material change. The adjusted terms of the New Options shall be effective and binding for all purposes of this Agreement.