Common use of Subscription Privileges Clause in Contracts

Subscription Privileges. Each Rights Holder is entitled to subscribe for all or any portion of the shares of Pre-Split Common Stock that may be purchased upon exercise of the Rights (the "Basic Subscription Privilege"). Each Right also entitles the Rights Holder to oversubscribe for any shares not sold to Rights Holders exercising the Basic Subscription Privilege, not to exceed one additional share of Pre-Split Common Stock for each share of Pre-Split Common Stock purchased under the Basic Subscription Privilege (the "Oversubscription Privilege"). Only Rights Holders who exercise Rights under the Basic Subscription Privilege will be entitled to exercise the Oversubscription Privilege. If the shares of Pre-Split Common Stock not subscribed for by Rights Holders through exercise of the Basic Subscription Privilege are not sufficient to satisfy all oversubscriptions, available shares will be allocated pro rata (subject to the elimination of fractional shares) among oversubscribing Rights Holders in proportion to the number of shares of Pre-Split Common Stock each oversubscribing Rights Holder has subscribed for under the Basic Subscription Privilege.