Common use of Stock Dividends or Stock Splits Clause in Contracts

Stock Dividends or Stock Splits. If an increase has been effected in the number of outstanding Shares by reason of a subdivision or split-up of such Shares, there shall be added to the number of Option Shares which may thereafter be purchased under this Option, the number of additional Shares which would have been received by the Optionee on such stock dividend, subdivision or split-up had the Optionee been the holder of record of the Option Shares immediately prior to such stock dividend, subdivision or split-up. In such event, the exercise price per Option Share shall be proportionately reduced.