No Effect on Capital Structure Clause Samples

The "No Effect on Capital Structure" clause establishes that a particular action, agreement, or transaction will not alter the existing arrangement of a company's equity, debt, or ownership interests. For example, this clause may clarify that entering into a specific contract or undertaking a certain transaction will not result in the issuance of new shares, changes to voting rights, or adjustments to outstanding debt. Its core practical function is to reassure stakeholders that the company's financial and ownership structure will remain unchanged, thereby preventing unintended dilution or shifts in control.
No Effect on Capital Structure. This Award Agreement shall not affect the right of the Company to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
No Effect on Capital Structure. This Option shall not affect the right of the Company or any Affiliate to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
No Effect on Capital Structure. This Option shall not affect the right of Holdings to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize and, by acceptance of this Agreement, Holder agrees that Holder has no standing before any court to object to or contest any such action.
No Effect on Capital Structure. The Option shall not affect the right of the Company or any Subsidiary to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
No Effect on Capital Structure. This Nonqualified Stock Option shall not affect the right of the Corporation or any Affiliate thereof to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
No Effect on Capital Structure. This SAR shall not affect the right of the Company to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
No Effect on Capital Structure. This grant of options shall not affect the right of the Bank or any affiliate thereof to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
No Effect on Capital Structure. This Restricted Stock Unit Agreement shall not affect the right of the Company or any Subsidiary thereof to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
No Effect on Capital Structure. This Restricted Stock Award shall not affect the right of the Corporation or any Subsidiary to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
No Effect on Capital Structure. No award or right granted hereunder shall affect the right of the Company or any Subsidiary to reclassify, recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.