Common use of Exchange of Stock Clause in Contracts

Exchange of Stock. Upon the merger becoming effective: (a) The shareholders of Bank of record at the time the merger becomes effective, for each share of common stock of Bank then held by them, shall be allocated and entitled to receive one share of the common stock of Holding Company; (b) Holding Company shall issue the shares of its common stock which the shareholders of Bank shall be entitled to receive; and (c) Outstanding certificates representing shares of the common stock of Bank shall thereafter represent shares of the common stock of Holding Company, and such certificates may, but need not, be exchanged by the holders thereof, after the merger becomes effective, for new certificates for the appropriate number of shares bearing the name of Holding Company.