Common use of Rights Issue Clause in Contracts

Rights Issue. In case the Company shall issue rights, options or warrants to all holders of its outstanding Common Stock, entitling them to subscribe for or purchase Common Stock at a price per share which is lower at the record date mentioned below than the then current market price per share of Common Stock (as defined in subparagraph (d) below), the number of shares of Common Stock thereafter purchasable upon the exercise of the Warrant shall be determined by multiplying the number of shares of Common Stock theretofore purchasable upon exercise of the Warrant by a fraction, of which the numerator shall be the number of shares of Common Stock outstanding on the date of issuance of such rights, options or warrants plus the number of additional shares of Common Stock offered for subscription or purchase, and of which the denominator shall be the number of shares of Common Stock outstanding on the date of issuance of such right, options or warrants plus the number of shares of Common Stock which could be purchased at the current market price per share of Common Stock at such record date with: (i) the aggregate purchase price of the total number of shares of Common Stock so offered for subscription or purchase, plus (ii) any consideration received by the Company for such rights, options or warrants. Such adjustment shall be made whenever such rights, options or warrants are issued, and shall become effective immediately after the record date for the determination of stockholders entitled to receive such rights, options or warrants.