Common use of Recapitalizations, etc Clause in Contracts

Recapitalizations, etc. If, prior to the Grantee's receipt of the shares of Telular stock, the Company effects a subdivision or consolidation of interest, stock split, dividend or distribution of shares of Telular stock or other securities of the Company, or other recapitalization, capital readjustment or reorganization, the shares of Telular stock subject to these Options under this Agreement and the applicable option exercise price for such Option shall be adjusted as follows. (a) after each such event the number of shares of Telular stock that the Grantee is entitled to receive with respect to any Option will be equal to the number of shares of Telular stock that the Grantee would hold by reason if (i) the exercise of such Option immediately prior to the record date for such event and (ii) the effect of such event upon the shares of Telular stock received upon such exercise, subject to further adjustment pursuant to the Section 8 for subsequent events if applicable; and (b) the applicable option exercise price shall be adjusted ratably in proportion to any adjustment in the number of shares of Telular stock to be issued with respect to any Option.