Common use of Liquidating Dividends Clause in Contracts

Liquidating Dividends. If the Company declares or pays a dividend upon the Common Stock payable otherwise than in cash out of earnings or earned surplus (determined in accordance with generally accepted accounting principles, consistently applied) except for a stock dividend payable in shares of Common Stock (a "Liquidating Dividend"), then the Company shall pay to the Registered Holder of this Warrant at the time of payment thereof the Liquidating Dividend which would have been paid to such Registered Holder on the Warrant Shares had this Warrant been fully exercised immediately prior to the date on which a record is taken for such Liquidating Dividend reduced by an amount equal to the aggregate Exercise Price of this Warrant, or, if no record is taken, the date as of which the record holders of Common Stock entitled to such dividends are to be determined.

Liquidating Dividends. If the Company declares or pays a dividend upon the Common Stock payable otherwise than in cash out of earnings or earned surplus (determined in accordance with generally accepted accounting principles, consistently applied) except for a stock dividend payable in shares of Common Stock (a "Liquidating Dividend"), then the Company shall pay to the Registered Holder of this Warrant Note at the time of payment thereof the Liquidating Dividend which would have been paid to such Registered Holder on the Warrant Shares shares of Conversion Stock had this Warrant the outstanding Debt had been fully exercised converted immediately prior to the date on which a record is taken for such Liquidating Dividend reduced by an amount equal to the aggregate Exercise Price of outstanding Debt under this WarrantNote, or, if no record is taken, the date as of which the record holders of Common Stock entitled to such dividends are to be determined.