Common use of Other Rights to Acquire Common Stock Clause in Contracts

Other Rights to Acquire Common Stock. In case the Company shall distribute to all holders of its Common Stock evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings of Maker) or rights or warrants to subscribe or purchase Common stock (excluding those referred to in Paragraph 4.2 above), then in each such case the Exercise Price shall be adjusted so that the same shall equal the price determined by multiplying the Exercise Price in effect immediately prior to the date of such distribution by a fraction of which the numerator shall be the Current Market Price per share (as defined in Paragraph 4.4 below) of the Common Stock on the Record Date mentioned below less the then fair market value (as determined in good faith by the Board of Directors of the Company) of the portion of the assets or evidences of indebtedness so distributed or of such rights or warrants applicable to one share of Common Stock, and the denominator shall be the Current Market Price per share of the Common Stock. Such adjustment shall become effective immediately after the Record Date for the determination of shareholders entitled to receive such distribution.

Appears in 15 contracts

Samples: Common Stock Purchase Warrant (Conversion Services International Inc), Common Stock Purchase Warrant (Conversion Services International Inc), Common Stock Purchase Warrant (Protein Polymer Technologies Inc)

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Other Rights to Acquire Common Stock. In case the Company shall distribute to all holders of its Common Stock evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings of Maker) or rights or warrants to subscribe or purchase Common stock (excluding those referred to in Paragraph 4.2 4.3 above), then in each such case the Exercise Price shall be adjusted so that the same shall equal the price determined by multiplying the Exercise Price in effect immediately prior to the date of such distribution by a fraction of which the numerator shall be the Current Market Price per share (as defined in Paragraph 4.4 4.5 below) of the Common Stock on the Record Date record date mentioned below less the then fair market value (as determined in good faith by the Board of Directors of the Company) of the portion of the assets or evidences of indebtedness so distributed or of such rights or warrants applicable to one share of Common Stock, and the denominator shall be the Current Market Price per share of the Common Stock. Such adjustment shall become effective immediately after the Record Date record date for the determination of shareholders entitled to receive such distribution.

Appears in 1 contract

Samples: Common Stock Purchase Warrant (Protein Polymer Technologies Inc)

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