Common use of Anti-Dilutive Adjustment to Number of Vested Shares Clause in Contracts

Anti-Dilutive Adjustment to Number of Vested Shares. The Company agrees that if the Fair Market Value of the Company’s common stock on the date the Shares are vested (the “Vesting Date”) is less than the Fair Market Value of the Company’s common stock on the Effective Date, then the number of Vested Shares issuable (assuming all conditions are satisfied) shall be increased so that the aggregate Fair Market Value of Vested Shares issuable on the Vesting Date equals the aggregate Fair Market Value that such number of Shares would have had on the Effective Date. The “Fair Market Value” shall equal the average of the trailing ten (10) closing trade prices of the Company’s common stock on the last ten (10) trading days of the month immediately prior to the date of determination as quoted on the public securities trading market on which the Company’s common stock is then traded; provided, that if the Company’s common stock is not then publicly trading or quoted, Fair Market Value shall be determined by the Company’s Board of Directors in good faith.

Appears in 4 contracts

Samples: Restricted Stock Award Agreement (Originclear, Inc.), Restricted Stock Award Agreement (Originclear, Inc.), Restricted Stock Award Agreement (Originclear, Inc.)

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