Common use of Readjustment Clause in Contracts

Readjustment. (i) If any option or right, the issuance of which resulted in an adjustment under paragraph (e) above, expires without having been exercised prior to the exercise by the Holder of its rights hereunder, the number of shares of Common Stock then issuable hereunder shall then be readjusted to such lesser number as would have been issuable had the option or right never been issued. (ii) If any right to convert or exchange any Common Stock Equivalent, the issuance of which resulted in an adjustment hereunder, expires without having been exercised prior to the exercise by Holder of its rights hereunder, the number of shares of Common Stock then issuable hereunder shall then be readjusted to such lesser number as would have been issuable had the Common Stock Equivalent never been issued. (iii) If any right to convert, exercise or exchange any Common Stock Equivalent, the issuance of which resulted in an adjustment hereunder, provides by its terms for the issuance of a variable number of shares of Common Stock or a variable per share price (a "Variable Security"), then the maximum number of shares of Common Stock issuable under such Variable Security (including without limitation any additional shares that may be issued pursuant to any employment agreement or other document with respect thereto) shall be used for the calculation of Common Stock Deemed Outstanding, and the minimum per share price shall be used to determine whether such transaction requires an adjustment hereunder. In the event that the number of shares of Common Stock issuable under the Variable Security decreases (other than through partial conversion, exchange or exercise) or the per share price increases, the number of shares of Common Stock then issuable hereunder shall be readjusted, as of the date of the original adjustment, to reflect such decrease or increase.

Appears in 1 contract

Samples: Warrant Agreement (Encore Medical Corp)

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Readjustment. In the event (i) If the purchase price payable for any option Stock Purchase Rights or right, the issuance of which resulted Convertible Securities referred to in an adjustment under paragraph Subsection (ec) or (d) above, expires without having been exercised prior to (ii) the additional consideration, if any, payable upon exercise by of such Stock Purchase Rights or upon the Holder conversion or exchange of its rights hereundersuch Convertible Securities or (iii) the rate at which any Convertible Securities above are convertible into or exchangeable for additional shares of Common Stock shall change, the number of shares of Common Class A Non-Voting Stock then issuable hereunder under this Warrant at the time of such event shall then forthwith be readjusted to such lesser that number as of Shares which would have been issuable at such time had such Stock Purchase Rights or Convertible Securities provided for such changed purchase price, additional consideration or conversion rate, as the option case may be, at the time initially granted, issued or right never been issued. (ii) If sold. On the expiration of any such Stock Purchase Rights not exercised or of any such right to convert or exchange under any Common Stock Equivalent, the issuance of which resulted in an adjustment hereunder, expires without having been exercised prior to the exercise by Holder of its rights hereundersuch Convertible Securities not exercised, the number of shares of Common Class A Non-Voting Stock then issuable hereunder under this Warrant shall then forthwith be readjusted reduced to such lesser that number as of shares which would have been issuable at the time of such expiration or termination had the Common such Stock Equivalent Purchase Rights or Convertible Securities never been issued. (iii) If any right to convert, exercise or exchange any Common Stock Equivalent, the issuance . No readjustment of which resulted in an adjustment hereunder, provides by its terms for the issuance of a variable number of shares of Common Stock or a variable per share price (a "Variable Security"), then the maximum number of shares of Common Stock issuable under such Variable Security (including without limitation any additional shares that may be issued pursuant to any employment agreement or other document with respect thereto) shall be used for the calculation of Common Stock Deemed Outstanding, and the minimum per share price shall be used to determine whether such transaction requires an adjustment hereunder. In the event that the number of shares of Common Class A Non-Voting Stock issuable under this Warrant pursuant to this Subsection (f) shall have the Variable Security decreases (other than through partial conversion, exchange or exercise) or the per share price increases, effect of reducing the number of shares of Common Class A Non-Voting Stock then issuable hereunder shall be readjusted, as under this Warrant by a number in excess of the date adjustments made to the number of shares of Class A Non-Voting Stock issuable under this Warrant in respect of the original adjustmentissue, to reflect such decrease sale or increasegrant of the applicable Stock Purchase Rights or Convertible Securities.

Appears in 1 contract

Samples: Warrant Agreement (Nutraceutical International Corp)

Readjustment. In the event (i) If the purchase price payable f or any option Stock Purchase Rights or right, the issuance of which resulted Convertible Securities referred to in an adjustment under paragraph Subsection (ec) or (d) above, expires without having been exercised prior to (ii) the additional consideration, if any, payable upon exercise by of such Stock Purchase Rights or upon the Holder conversion or exchange of its rights hereundersuch Convertible Securities or (iii) the rate at which any Convertible Securities above are convertible into or exchangeable for additional shares of Common Shares shall change, the number of shares of Non-Voting Common Stock then issuable hereunder under this Warrant at the time of such event shall then forthwith be readjusted to such lesser that number as of Shares which would have been issuable at such time had such Stock Purchase Rights or Convertible Securities provided for such changed purchase price, additional consideration or conversion rate, as the option case may be, at the time initially granted, issued or right never been issued. (ii) If sold. On the expiration of any such Stock Purchase Rights not exercised or of any such right to convert or exchange under any Common Stock Equivalent, the issuance of which resulted in an adjustment hereunder, expires without having been exercised prior to the exercise by Holder of its rights hereundersuch Convertible Securities not exercised, the number of shares of Non-Voting Common Stock then issuable hereunder under this Warrant shall then forthwith be readjusted reduced to such lesser that number as of shares which would have been issuable at the time of such expiration or termination had the Common such Stock Equivalent Purchase Rights or Convertible Securities never been issued. (iii) If any right to convert, exercise or exchange any Common Stock Equivalent, the issuance . No readjustment of which resulted in an adjustment hereunder, provides by its terms for the issuance of a variable number of shares of Common Stock or a variable per share price (a "Variable Security"), then the maximum number of shares of Common Stock issuable under such Variable Security (including without limitation any additional shares that may be issued pursuant to any employment agreement or other document with respect thereto) shall be used for the calculation of Common Stock Deemed Outstanding, and the minimum per share price shall be used to determine whether such transaction requires an adjustment hereunder. In the event that the number of shares of Non-Voting Common Stock issuable under this Warrant pursuant to this Subsection (f) shall have the Variable Security decreases (other than through partial conversion, exchange or exercise) or the per share price increases, effect of reducing the number of shares of Non-Voting Common Stock then issuable hereunder shall be readjusted, as under this Warrant by a number in excess of the date adjustments made to the number of shares of Non-Voting Common Stock issuable under this Warrant in respect of the original adjustmentissue, to reflect such decrease sale or increasegrant of the applicable Stock Purchase Rights or Convertible Securities.

Appears in 1 contract

Samples: Warrant Agreement (Nutraceutical International Corp)

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Readjustment. (i) If In any option case in which Additional Shares of Common Stock are deemed or right, have been deemed issued in connection with the issuance of which resulted Options or Convertible Securities, certain subsequent events shall require further adjustment of the Warrant Price as set forth in an this Section 9.4. (a) No further adjustment under paragraph (e) above, expires without having been exercised prior to in the exercise by Warrant Price shall be made as a result of the Holder subsequent issuance of its rights hereunder, the number of shares any share of Common Stock then issuable hereunder shall then be readjusted to upon the exercise of any such lesser number as would have been issuable had Options or the option or right never been issuedconversion of any such Convertible Securities. (iib) If such Options or Convertible Securities by their terms provide, with the passage of time or otherwise, for any right to convert or exchange any Common Stock Equivalent, decrease in the issuance of which resulted in an adjustment hereunder, expires without having been exercised prior consideration payable to the exercise by Holder of its rights hereunderCompany, the number of shares of Common Stock then issuable hereunder shall then be readjusted to such lesser number as would have been issuable had the Common Stock Equivalent never been issued. (iii) If any right to convert, exercise or exchange any Common Stock Equivalent, the issuance of which resulted increase in an adjustment hereunder, provides by its terms for the issuance of a variable number of shares of Common Stock or a variable per share price (a "Variable Security"), then the maximum number of shares of Common Stock issuable under such Variable Security (including without limitation any additional shares that may be issued pursuant to any employment agreement or other document with respect thereto) shall be used for the calculation of Common Stock Deemed Outstanding, and the minimum per share price shall be used to determine whether such transaction requires an adjustment hereunder. In the event that the number of shares of Common Stock issuable under upon the Variable Security decreases (other than through partial exercise, conversion, or exchange or exercise) or the per share price increasesthereof, the number of shares of Common Stock then issuable hereunder shall be readjusted, as of the date of Warrant Price computed upon the original adjustmentissuance thereof, and any subsequent adjustments based thereon, shall, upon any such decrease or increase becoming effective, be recomputed to reflect such decrease or increaseincrease insofar as it affects such Options or the rights of conversion or exchange under such Convertible Securities. Notwithstanding any provision to the contrary in any instrument governing such Options or Convertible Securities, however, there shall be no such decrease or increase as a result of any recomputation of the Warrant Price pursuant to this subsection 9.4(b). (c) Upon the expiration of any Options or rights of conversion or exchange under any Convertible Securities, if any thereof shall not have been exercised, the Warrant Price shall, upon such expiration, be readjusted and shall thereafter be such as it would have been had it been originally adjusted (or had the original adjustment not been required, as the case may be) as if (A) the only shares of Common Stock so issued were the shares of Common Stock, if any, actually issued or sold upon the exercise of such Options or conversions or exchange rights under such Convertible Securities and (B) such shares of Common Stock, if any, were issued or sold for the consideration actually received by the Company upon such exercise plus the aggregated consideration, if any, actually received by the Company for the issuance, sale or grant of all of such Options or conversion or exchange rights under such Convertible Securities whether or not exercised, provided, further that no such readjustment shall have the effect of increasing the Warrant Price by an amount in excess of the amount of the adjustment initially made, in respect to the issuance, sale or grant of such Options, or conversion or exchange rights under such Convertible Securities.

Appears in 1 contract

Samples: Warrant Agreement (World Airways Inc /De/)

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