Common use of Adjustment of Warrant Share Number Clause in Contracts

Adjustment of Warrant Share Number. Upon each adjustment in the Warrant Price pursuant to any of the foregoing provisions of this Section 5, to the extent not otherwise adjusted pursuant to the foregoing provisions of this Section 5, the Warrant Share Number shall be adjusted, to the nearest one hundredth of a whole share, to the product obtained by multiplying the Warrant Share Number immediately prior to such adjustment in the Warrant Price by a fraction, the numerator of which shall be the Warrant Price immediately before giving effect to such adjustment and the denominator of which shall be the Warrant Price immediately after giving effect to such adjustment. If the Issuer shall be in default under any provision contained in Section 4 or Section 5(i) of this Warrant so that shares issued at the Warrant Price adjusted in accordance with this Warrant would not be validly issued, (i) the adjustment of the Warrant Share Number provided for in the foregoing sentence shall nonetheless be made and the Holder of this Warrant shall be entitled to purchase such greater number of shares at the lowest price at which such shares may then be validly issued under applicable law and (ii) the Issuer shall immediately use its best efforts to recapitalize itself, for instance by reducing the par value of its Common Stock, to enable exercise of this Warrant at the adjusted Warrant Price and shall indemnify the Holders against any loss, expense or damages (including attorney fees) arising out of any failure to complete such recapitalization timely. Such exercise shall not constitute a waiver of any claim arising against the Issuer by reason of its default under Section 4 or Section 5(i) of this Warrant.