Adjustment Upon Corporate Changes Sample Clauses

The "Adjustment Upon Corporate Changes" clause defines how certain terms of an agreement, such as share quantities or exercise prices, will be modified if the company undergoes significant structural changes like mergers, stock splits, or reorganizations. For example, if a company issues additional shares or consolidates its stock, the rights or obligations under the agreement—such as the number of shares an investor can purchase—are recalculated to reflect the new corporate structure. This clause ensures that parties are treated fairly and that their interests are not diluted or unfairly altered due to corporate actions, thereby maintaining the original economic intent of the agreement.