Common use of Warrant Terms Clause in Contracts

Warrant Terms. Percentage of Total Equity There will be two classes of warrants as described below: the “FG Warrants” and “Lender Warrants” each permitting purchase of non-voting equity in an amount up to two and one-half percent (2.5%) (or such lesser percentage as is set forth in the following paragraph) of the total outstanding shares of Propco Holdco on a fully diluted basis as of the Effective Date for a total of 5% of the outstanding equity, in all cases on the Effective Date and prior to giving effect to any New Propco related acquisition of Opco assets or equity. The Warrants shall provide that, to the extent the ▇▇▇▇▇▇▇▇ Affiliates and Mortgage Lenders purchase additional equity of Propco Holdco in connection with the Plan or if other outside investors purchase additional equity within the first six months after confirmation, then the percentage of outstanding equity that can be purchased upon exercise of such warrants shall be automatically ratably reduced to take into account the dilutive effect of the increase in total capitalization of Propco Holdco resulting from such equity sales.