DIVIDENDS ON UNDERLYING COMMON STOCK Sample Clauses

The "Dividends on Underlying Common Stock" clause defines how dividends paid on the common stock underlying a financial instrument, such as options or convertible securities, are treated. Typically, this clause specifies whether the holder of the instrument is entitled to receive dividends declared on the underlying shares, and if so, how and when those payments are made. For example, it may state that dividends are passed through to the holder or that the instrument's value is adjusted to reflect dividend payments. The core function of this clause is to clarify the rights of the instrument holder regarding dividend distributions, thereby preventing disputes and ensuring both parties understand the financial benefits associated with the underlying stock.
DIVIDENDS ON UNDERLYING COMMON STOCK. In the event that, at any time before the Charter Amendment (as defined in the Unit Purchase Agreement) shall have (a) been approved and adopted by the Company's stockholders, (b) been filed with the Department of Consumer and Industry Services of the State of Michigan and (c) become effective, or at any time after the Company shall have failed for any reason to issue Common Stock to the Holder upon exercise of this Warrant or shall have failed to comply with Section 7 hereof, the Company shall pay a dividend or make any other distribution with respect to its Common Stock whether in the form of cash, evidences of indebtedness, securities or other property (other than a Common Stock dividend subject to the provisions of Section 4.1 or a dividend of warrants or rights to purchase Common Stock subject to the provisions of Section 4.2), then the Company shall pay to the Holder of this Warrant on the date of payment of such dividend or other distribution, an amount in cash equal to the number of shares of Common Stock issuable upon exercise of this Warrant in full on the record date for such dividend or other distribution (without regard to the number of shares of Common Stock available or set aside for issuance upon such exercise) multiplied by the sum of (i) the amount of cash and (ii) the fair value of any evidences of indebtedness, securities or other property distributed with respect to each share of Common Stock. The "fair value" of any such evidences of indebtedness, securities or other property shall mean the fair market value thereof, as determined by the Board of Directors in good faith, which good faith determination may be challenged by the Holder in accordance with Section 4.7(f).
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DIVIDENDS ON UNDERLYING COMMON STOCK. In the event that, at any time before the Charter Amendment (as defined in the Unit Purchase Agreement) shall have (a) been approved and adopted by the Company's
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DIVIDENDS ON UNDERLYING COMMON STOCK. In the event that, at any time after the Company shall have failed for any reason to issue Common Stock to the Holder upon exercise of this Warrant or shall have failed to comply with Section 7 hereof, the Company shall pay a dividend or make any other distribution with respect to its Common Stock whether in the form of cash, evidences of indebtedness, securities or other property (other than a Common Stock dividend subject to the provisions of Section 4.1 or a dividend of warrants or rights to purchase Common Stock subject to the provisions of Section 4.2), then the Company shall pay to the Holder of this Warrant on the date of payment of such dividend or other distribution, an amount in cash equal to the number of shares of Common Stock issuable upon exercise of this Warrant in full on the record date for such dividend or other distribution multiplied by the sum of (i) the amount of cash and (ii) the fair value of any evidences of indebtedness, securities or other property distributed with respect to each share of Common Stock. The "fair value" of any such evidences of indebtedness, securities or other property shall mean the fair market value thereof, as determined by the Board of Directors in good faith, which good faith determination may be challenged by the Holder in accordance with Section 4.7(f).
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DIVIDENDS ON UNDERLYING COMMON STOCK 
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Related to DIVIDENDS ON UNDERLYING COMMON STOCK

  • Stock Dividends, etc In the event of a stock split, stock dividend or distribution, or any change in the Common Stock by reason of any split-up, reverse stock split, recapitalization, combination, reclassification, exchange of shares or the like, the terms “Existing Shares” and “Covered Shares” shall be deemed to refer to and include such shares as well as all such stock dividends and distributions and any securities into which or for which any or all of such shares may be changed or exchanged or which are received in such transaction.

  • Dividends, Etc The Company shall not declare or pay any dividend of any kind, in cash or in property, on any class of its capital stock, nor purchase, redeem, retire or otherwise acquire for value any shares of such stock, nor make any distribution of any kind in respect thereof, nor make any return of capital to shareholders, nor make any payments in respect of any pension, profit sharing, retirement, stock option, stock bonus, incentive compensation or similar plan (except as required or permitted hereunder), without the prior written consent of the Secured Party.

  • Cash Dividends; Voting Rights Unless an Event of Default has occurred and the Administrative Agent has given notice to the Pledgors of the Administrative Agent’s intent to exercise its corresponding rights pursuant to Section 7 hereof, the Pledgors shall be permitted to receive all cash dividends, to the extent permitted in the Credit Agreement, in respect of the Pledged Stock and to exercise all voting and corporate rights with respect to the Pledged Stock; provided, however, that no vote shall be cast or corporate right exercised or other action taken which, in the Administrative Agent’s reasonable judgment, would impair the Collateral or which would be inconsistent with or result in any violation of any provision of the Credit Agreement, this Pledge Agreement or any other Credit Document.

  • Stock Dividends - Split-Ups If after the date hereof, and subject to the provisions of Section 4.6 below, the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock, or by a split up of shares of Common Stock, or other similar event, then, on the effective date of such stock dividend, split up or similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be increased in proportion to such increase in outstanding shares of Common Stock.

  • Stock Splits, Dividends and Combinations In the event that the Company shall at any time subdivide the outstanding shares of Common Stock, or shall issue a stock dividend on its outstanding shares of Common Stock, the number of Warrant Shares issuable upon exercise of this Warrant immediately prior to such subdivision or to the issuance of such stock dividend shall be proportionately increased, and the Exercise Price shall be proportionately decreased, and in the event that the Company shall at any time combine the outstanding shares of Common Stock, the number of Warrant Shares issuable upon exercise of this Warrant immediately prior to such combination shall be proportionately decreased, and the Exercise Price shall be proportionately increased, effective at the close of business on the date of such subdivision, stock dividend or combination, as the case may be.