Common use of Dividends, Subdivisions, Reclassifications or Combinations Clause in Contracts

Dividends, Subdivisions, Reclassifications or Combinations. The issuance of Common Stock as a dividend or distribution to all holders of Common Stock, or a subdivision or reclassification of Common Stock into a greater number of shares or the combination of or reclassification of Common Stock into a smaller number of shares, in which event the Exercise Price will be adjusted based on the following formula: EP1 = EP0 x (OS0 / OS1) Where EP0 = the Exercise Price in effect at the Close of Business on the record date EP1 = the Exercise Price in effect immediately after the record date OS0 = the number of shares of Common Stock outstanding at the Close of Business on the record date prior to giving effect to such event OS1 = the number of shares of Common Stock that would be outstanding immediately after, and solely as a result of, such event Upon each adjustment of the Exercise Price pursuant to this subsection (a), each Warrant shall thereupon evidence the right to purchase that number of shares of Common Stock (calculated to the nearest 1/100th of a share) obtained by multiplying the number of shares of Common Stock purchasable immediately prior to such adjustment upon exercise of the Warrant by the Exercise Price in effect immediately prior to such adjustment and dividing the product so obtained by the Exercise Price in effect immediately after such adjustment.