Consideration Factor definition
Consideration Factor means the proportion (expressed as a decimal) of a Spun-off Share that is obtained for each Affected Share according to the following formula: Consideration Factor = Total number of Spun-off Shares/ total number of Affected Shares before the spin off. The Calculation Agent, in order to maintain the same number of Shares in the Basket, as soon as reasonably practicable, after been aware of any event in paragraph A), B) or C) above, will communicate to the parties the new share/s (the “New Share/s”) that will be included in the Basket in substitution of the Affected Share/s. The communication will also include the effective date of this Extraordinary Event (the “Substitution Date”). In connection with each Share, each New Share must be part of any relevant exchange in connection with each Share. If possible, each New Share will belong to the same economic sector and geographical area as that of the Affected Share, and will be selected taking into account the variables that affect the quotation of the shares and the derivative instruments which such share is underlying. Both parties hereby agree and undertake that the New Shares shall be considered acceptable if there is no challenge by any of the parties within two Business Days after the communication. Both parties also agree that any challenge to the communication must be made by written notice duly signed by a representative with sufficient capacity and delivered to the Calculation Agent to the correct address. If either party challenges the determination according to the procedure above, the parties agree to appoint a mutually acceptable independent third party (the “Substitute Calculation Agent”) that will be appointed within one Business Day following the notice of the challenge. If either party determines that the parties cannot agree on an independent third party, then each party shall select an Independent Leading Dealer (as defined below) in the relevant market. Those elected Independent Leading Dealers shall agree between them a third Independent Leading Dealer, who will perform the determination of the New Shares/s.
Consideration Factor means the proportion (expressed as a decimal) of a Spun-off Share that is obtained for each Affected Share according to the following formula: Consideration Factor = Total number of Spun-off Shares/ total number of Affected Shares before the spin off.
Consideration Factor shall be equal to the number (rounded to the sixth decimal place) computed using the following formula:
Examples of Consideration Factor in a sentence
In accordance with the terms of the Plan of Arrangement at the Effective Time, (i) each Base Controlled Lexam VG Gold Share shall be exchanged for the Arrangement Consideration, and (ii) each Excess Controlled Lexam VG Gold Share shall be exchanged for such fraction of one Subscription Receipt equal to one (1) multiplied by the Arrangement Consideration Factor.