Common use of Incremental Shares Clause in Contracts

Incremental Shares. If an event identified in Section 3(a) occurs ------------------ and as a result the Investor Group acquires Voting Securities which increase the Investor Group's percentage interest in the Actual Voting Power to more than the Threshold Percentage (the "Incremental Shares"), and thereafter the Triggering ------------------ Person holds Voting Securities representing a percentage of the Total Voting Power less than the Threshold Percentage, then, upon the expiration of the Investor Group's right to dispose of the Incremental Shares as provided in Section 4(b) below, the Investor Group hereby grants to the Company, for a period of ninety (90) days (subject to extension in the event of Investor's exercise of rights under Section 4(b) below), an option to acquire any Incremental Shares at a price equal to the price paid by the Investor Group for such shares, plus such expenses and costs reasonably necessary to acquire the Incremental Shares and incurred by the Investor Group in acquiring the Incremental Shares (including the cost of funds of the Investor Group of holding the incremental Shares until acquired by the Company).

Appears in 1 contract

Sources: Standstill Agreement (Chemdex Corp)

Incremental Shares. If an any event identified in Section 3(a) occurs ------------------ and as a result the Investor Group acquires Voting Securities which increase the Investor Group's ’s percentage interest in the Actual Voting Power to more than the Threshold Percentage or more (the "Incremental Shares"), and thereafter the Triggering ------------------ Person such other person or 13D Group holds Voting Securities representing a percentage of the Total Voting Power less than the Threshold Percentage, then, upon the expiration of the Investor Group's ’s right to dispose of the Incremental Shares as provided in Section 4(b) below, the Investor Group hereby grants to the Company, for a period of ninety (90) days (subject to extension in the event of Investor's exercise of rights under Section 4(b) below)days, an option to acquire any Incremental Shares at a price equal to the price paid by the Investor Group for such shares, plus such expenses and costs reasonably necessary to acquire the Incremental Shares and incurred by the Investor Group in acquiring the Incremental Shares (including the cost of funds of the Investor Group of holding the incremental Shares until acquired by the Company).

Appears in 1 contract

Sources: Standstill Agreement (Jones Kenneth E)