Common use of Subscription Offer Clause in Contracts

Subscription Offer. The Company will offer to holders of its Common Stock of record at the close of business on _____________, 1996 the right to purchase shares of Common Stock at a price of $7.00 per share on the basis of one right to purchase one-quarter of one share of Common Stock for every share of Common Stock held. The Company will, or will cause its Transfer Agent to, mail Rights Certificates to such holders of Common Stock as promptly as practicable after the Registration Statement becomes effective, and in any event will complete such mailing not later than midnight on the day next succeeding the effective date of the Registration Statement, unless you shall consent to a later time in writing. At the time of the commencement of the mailing ("Time of Mailing") of the Rights Certificates to such holders, the Company will notify each of the Standby Purchasers of such mailing, and the Company will advise each of the Standby Purchasers daily during the period of such offer of the subscriptions received and of sales. Not later than 10 A.M., New York City Time, on the first full business day following the Expiration Date, the Company will notify each Standby Purchaser by telephone of the total number of shares of Common Stock subscribed for by holders of Rights Certificates and the resulting amount of Unsubscribed Securities and will confirm such notice in writing. The Standby Purchasers shall be entitled to rely on such notice as to the amount of Unsubscribed Securities to be purchased by them in accordance with Schedule A hereto.