Common use of Certain Trading Restrictions Clause in Contracts

Certain Trading Restrictions. Each Lender agrees that neither ---------------------------- it nor its Affiliates (taken as a whole) will enter into or maintain a net short position with respect to the Common Stock. Accordingly, each Lender agrees that neither it nor its Affiliates will enter into or maintain any short sale of the Common Stock at a time when there is no equivalent offsetting long position in the Common Stock held by such Lender. For purposes of determining whether there is an equivalent offsetting long position in the Common Stock held by such Lender, the Underlying Shares issuable upon exercise of all warrants (including the Warrants) and conversion of all debentures and notes (including the Notes and in each case any shares issuable on account of interest under such notes or debentures) held by such Lender (without regard to any exercise or conversion caps contained therein, and whether or not any exercise or conversion notice shall have been tendered by such Lender) shall be deemed held long by such Lender for purposes of this Section.

Appears in 2 contracts

Sources: Loan and Warrant Agreement (Zoltek Companies Inc), Loan and Warrant Agreement (Zoltek Companies Inc)

Certain Trading Restrictions. Each Lender agrees that neither ---------------------------- it nor its Affiliates (taken as a whole) will enter into or maintain a net short position with respect to the Common Stock. Accordingly, each Lender agrees that neither it nor its Affiliates will enter into or maintain any short sale of the Common Stock at a time when there is no equivalent offsetting long position in the Common Stock held by such Lender. For purposes of determining whether there is an equivalent offsetting long position in the Common Stock held by such Lender, the Underlying Shares issuable upon exercise of all warrants (including the Warrants) and conversion of all the debentures and notes Notes (including the Notes and in each case any shares issuable on account of interest under such notes or debenturesthereunder) held by such Lender (without regard to any exercise or conversion caps contained therein, and whether or not any exercise or conversion notice shall have been tendered by such Lender) shall be deemed held long by such Lender for purposes of this Section.

Appears in 1 contract

Sources: Loan and Warrant Agreement (Zoltek Companies Inc)