Adjustment for Capitalization Table Errors Clause Samples
The Adjustment for Capitalization Table Errors clause ensures that any mistakes or inaccuracies in the company's capitalization table are corrected to reflect the true ownership structure. In practice, this clause allows for adjustments if, for example, the number of shares or the allocation of equity among stakeholders was recorded incorrectly during a financing round or corporate restructuring. Its core function is to maintain accuracy and fairness in the representation of ownership interests, thereby preventing disputes and ensuring all parties have a clear understanding of their rights and obligations.
Adjustment for Capitalization Table Errors. The parties acknowledge their mutual agreement that the initial Number of Shares is based on the capitalization of the Company being in all material respects as represented to Holder and appended hereto as Exhibit C. If the fully-diluted equity of the Company is not, as of the Issue Date, in fact as represented in Exhibit C, the Number of Shares and / or Exchange Price shall be equitably adjusted under Section 4.7.