Common use of Certain Other Dividends and Distributions Clause in Contracts

Certain Other Dividends and Distributions. In case at any time or from time to time after the Original Issuance Date Sterling shall effect a Special Dividend (other than a Permitted Dividend or a dividend or distribution upon a capital reorganization, reclassification, consolidation or merger to which Section 4.01(c) applies), then, and in each such case, effective immediately prior to the opening of business on the day after the date for the determination of the holders of Common Stock entitled to receive such distribution, the number of shares of Common Stock into which each Warrant is exercisable shall be adjusted to that number determined by multiplying the number of shares of Common Stock into which each Warrant is exercisable immediately prior to the close of business on such date of determination by a fraction, (i) the numerator of which shall be the Current Market Value per share of Common Stock on such date for determination and (ii) the denominator of which shall be such Current Market Value per share of Common Stock minus the portion applicable to one share of Common Stock of the fair market value (as determined in good faith by the Board of Directors of Sterling) of such securities, cash or other assets so distributed.

Appears in 1 contract

Sources: Warrant Agreement (Sterling Chemical Inc)

Certain Other Dividends and Distributions. In case at any time or from time to time after the Original Issuance Effective Date Sterling the Company shall effect a Special Non-Stock Dividend (other than (x) a Receivable Dividend, a Received Dividend or a Permitted Dividend or a (y) any dividend or distribution upon a capital reorganization, reclassification, consolidation of any rights or merger warrants referred to which Section 4.01(c) appliesin SECTION 5.1(D)), then, and in each such case, effective immediately prior to the opening of business on the day after the date for the determination of the holders of Common Stock entitled to receive such distribution, the number of shares of Common Stock into which each Warrant is exercisable shall be adjusted to that number determined by multiplying the number of shares of Common Stock into which each Warrant is exercisable immediately prior to the close of business on such date of determination by a fraction, (i) the numerator of which shall be the Current Market Value Price per share of Common Stock on such date for determination and (ii) the denominator of which shall be such Current Market Value Price per share of Common Stock minus the portion applicable to one share of Common Stock of the fair market value (as determined in good faith by the Board of Directors of Sterlingthe Company) of such securities, cash or other assets so distributed.

Appears in 1 contract

Sources: Warrant Agreement (Metals Usa Inc)