Common use of Distribution Ratio Clause in Contracts

Distribution Ratio. Shareholders of the Parent will receive in the Distribution that number of common shares of the Subsidiary which is equal to one (1) common share of the Subsidiary for each twenty (20) common shares of the Parent held by them as of the close of business on the Record Date. No fractional shares or payment therefore shall be made incident to the Distribution; rather any fractional shares of the Subsidiary to be received by the Parent’s shareholders shall be rounded up to the next whole share.