Common use of Postponement of Subscription Clause in Contracts

Postponement of Subscription. In any case in which this Article 4 requires that an adjustment is to be effective immediately after a record date for an event referred to herein, the Company may defer, until the occurrence of such an event: (a) issuing to the holder of any Debenture converted after such record date and before the occurrence of such event, the additional Shares issuable upon such conversion by reason of the adjustment required by such event; and (b) delivering to such holder any distributions declared with respect to such additional Shares after such exercise date and before such event; provided, however, that the Company delivers to such holder an appropriate instrument evidencing such holder's right, upon the occurrence of the event requiring the adjustment, to an adjustment in the conversion price or the number of Shares issuable on the conversion of any Debenture and to such distributions declared with respect to any additional Shares issuable on the conversion of any Debenture.