Common use of Additional Adjustments Clause in Contracts

Additional Adjustments. (a) The Company may, in its sole discretion, increase the Conversion Rate as its Board of Directors deems advisable to avoid or diminish any income tax to Holders of its Common Stock resulting from any dividend or distribution of Capital Stock issuable upon conversion of the Notes (or rights to acquire Capital Stock) or from any event treated as such for income tax purposes. (b) The Company may, from time to time, to the extent permitted by applicable law, increase the Conversion Rate by any amount for any period of at least 20 Business Days if its Board of Directors has determined that such increase would be in the Company’s best interests. If its Board of Directors makes such determination, it will be conclusive. The Company will give Holders of Notes at least 15 days’ prior notice of such an increase in the Conversion Rate. (c) To the extent that the Company has a rights plan in effect upon any conversion of the Notes into Common Stock, a Holder shall receive, in addition to the Common Stock, the rights under the rights plan, unless, prior to any conversion, the rights have separated from the Common Stock, in which case the Conversion Rate will be adjusted at the time of separation as described in Section 5.8. A further adjustment shall occur as described in Section 5.8, if such rights become exercisable to purchase different securities, evidences of indebtedness or assets, subject to readjustment in the event of the expiration, termination or redemption of such rights. (d) Following: (A) any reclassification of the Company’s Common Stock; (B) a consolidation, merger, binding share exchange or combination involving the Company; or (C) a conveyance, transfer, sale, lease or other disposition to another Person or entity of all or substantially all of the Company's assets; the settlement amount in respect of the Company’s conversion obligation will be computed as set forth in Section 5.2, based on the kind and amount of shares of stock, securities, other property or assets (including cash or any combination thereof) that a holder of a number of shares of the Company's Common Stock equal to the applicable Conversion Rate multiplied by the number of Notes owned would have been entitled to receive in such transaction. However, if in any such transaction holders of the Company’s Common Stock would be entitled to elect the consideration for their Common Stock, the Company shall make adequate provisions so that upon conversion Holders of the Notes shall be entitled to elect, voting as a class, the consideration that they shall receive upon conversion of the Notes as described in Section 5.2, if applicable. (e) All calculations under this Article V shall be made to the nearest 1/10,000th of a share, as the case may be. (f) Except as otherwise stated in this Article V, the Company will not be required to adjust the Conversion Rate for the issuance of shares of the Company’s Common Stock, including in connection with satisfaction of the Company’s conversion obligation in a combination of cash and shares of the Company’s Common Stock, or any securities convertible into or exchangeable for shares of the Company’s Common Stock or the right to purchase shares of the Company’s Common Stock or such convertible or exchangeable securities.

Appears in 2 contracts

Samples: Second Supplemental Indenture (Great Atlantic & Pacific Tea Co Inc), Supplemental Indenture (Great Atlantic & Pacific Tea Co Inc)

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Additional Adjustments. (a) The Company may, in its sole discretion, increase the Conversion Rate as its Board of Directors deems advisable to avoid or diminish any income tax to Holders of its Common Stock resulting from any dividend or distribution of Capital Stock issuable upon conversion of the Notes (or rights to acquire Capital Stock) or from any event treated as such for income tax purposes. (bi) The Company may, from time to time, to the extent permitted by applicable law, increase the Conversion Rate by any amount for any period of at least 20 Business Days if its the Board of Directors (taking into account, among other considerations, the impact of possible income or withholding taxes on the Holders) has determined that such increase would be in the Company’s best interests. If its Board of Directors makes such determination, it will be conclusive. The Company will give Holders holders of Notes Convertible Preferred Stock at least 15 days’ days prior notice of such an increase in the Conversion Rate. (cii) To the extent that the Company has a rights plan in effect upon any conversion of the Notes Convertible Preferred Stock into Common Stock, a Holder shall receive, in addition to the Common Stock, the rights under the rights plan, unless, prior to any conversion, the rights have separated from the Common Stock, in which case the Conversion Rate will be adjusted at the time of separation as described in Section 5.813(c). A further adjustment shall occur as described in Section 5.8, 13(c) if such rights become exercisable to purchase different securities, evidences of indebtedness or assets, subject to readjustment in the event of the expiration, termination or redemption of such rights. (diii) Following: (A) any reclassification of the Company’s Common Stock; (B) a consolidation, merger, binding share exchange or combination involving the Company; or; (C) a conveyance, transfer, sale, lease or other disposition to another Person or entity of all or substantially all of the Company's ’s assets; or the settlement amount in respect of the Company’s conversion obligation will be computed as set forth in Section 5.213, based on the kind and amount of shares of stock, securities, other property or assets (including cash or any combination thereof) that a holder of a number of shares of the Company's Common Stock equal to the applicable Conversion Rate multiplied by the number of Notes shares of Convertible Preferred Stock owned would have been entitled to receive in such transaction. However, if in any such transaction holders of the Company’s Common Stock would be entitled to elect the consideration for their Common Stock, the Company shall make adequate provisions so that upon conversion Holders each Holder of the Notes Convertible Preferred Stock shall be entitled to elect, voting as a class, elect the consideration that they shall receive upon conversion of the Notes Convertible Preferred Stock as described in Section 5.213, if applicable. (e) All calculations under this Article V shall be made to the nearest 1/10,000th of a share, as the case may be. (fiv) Except as otherwise stated in this Article VSection 13, the Company will not be required to adjust the Conversion Rate for the issuance of shares of the Company’s Common Stock, including in connection with satisfaction of the Company’s conversion obligation in a combination of cash and shares of the Company’s Common Stock, or any securities convertible into or exchangeable for shares of the Company’s Common Stock or the right to purchase shares of the Company’s Common Stock or such convertible or exchangeable securities.

Appears in 2 contracts

Samples: Investment Agreement (Great Atlantic & Pacific Tea Co Inc), Investment Agreement (Great Atlantic & Pacific Tea Co Inc)

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Additional Adjustments. (a) The Company may, in its sole discretion, increase the Conversion Rate as its the Board of Directors deems advisable to avoid or diminish any income tax to Holders of its Common Stock the Securities resulting from any dividend or distribution of Capital Stock issuable upon conversion of the Notes Securities (or rights to acquire Capital Stock) or from any event treated as such for income tax purposes. (b) The Company may, from time to time, to the extent permitted by applicable law, increase the Conversion Rate by any amount for any period of at least 20 Business Days if its the Board of Directors has determined that such increase would be in the Company’s best interests. If its the Board of Directors makes such determination, it will be conclusive. The Company will give Holders of Notes the Securities and the Trustee and the Conversion Agent at least 15 days’ prior notice of such an increase in the Conversion Rate. (c) To the extent that the Company has a rights plan in effect upon any conversion of the Notes Securities into Common Stock, a Holder shall will receive, in addition to the Common Stock, the rights under the rights plan, unless, prior to any conversion, the rights have separated from the Common Stock, in which case the Conversion Rate will be adjusted at the time of separation as described in Section 5.810.08. A further adjustment shall will occur as described in Section 5.810.08 above, if such rights become exercisable to purchase different securities, evidences of indebtedness or assets, subject to readjustment in the event of the expiration, termination or redemption of such rights. (d) Following: (Ai) any reclassification of the Company’s Common Stock; (Bii) a consolidation, merger, binding share exchange or combination involving the Company; or (Ciii) a conveyance, transfer, sale, lease or other disposition to another Person or entity of all or substantially all of the Company's ’s assets; the settlement amount Settlement Amount in respect of the Company’s conversion obligation will be computed as set forth in Section 5.210.02 above, based on the kind and amount of shares of stock, securities, other property or assets (including cash or any combination thereof) that a holder of a number of shares holders of the Company's Common Stock equal to the applicable Conversion Rate multiplied by the number of Notes owned would have been are entitled to receive in such transaction. However, if respect of each share of Common Stock in any such transaction (the “Reference Property”) and Reference Property will be delivered in lieu of the shares of Common Stock that would have otherwise been deliverable upon conversion. If holders of the Company’s Common Stock would be entitled to elect the kind of consideration for their Common StockStock received in any transaction described in the previous sentence, the Company shall make adequate provision (which shall be similar to the provisions so of the election to be made holders of the Common Stock) whereby the Holders, treated as a single class, shall have the opportunity, on a timely basis, to determine the composition of the Reference Property that will replace the shares of Common Stock that would otherwise be delivered upon conversion conversion. Such determination shall be based on the weighted average of elections made by Holders of the Notes Securities who participate in such determination and shall be entitled subject to electany limitations to which all of the holders of the Common Stock are subject, voting such as a class, pro rata reductions applicable to any portion of the consideration that they payable. If no Holders participate in such election, then the kind of consideration for their Securities shall receive upon conversion be based on the weighted average of the Notes as described in Section 5.2, if applicable. (e) kind and amount of consideration received by the holders of the Common Stock that affirmatively make such an election. The determination of the Reference Property will apply to all of the Securities and the Company will notify the Trustee of the composition of the Reference Property promptly after it is determined. All calculations under this Article V 10 shall be made to the nearest 1/10,000th of a share, as the case may be. (fe) Except as otherwise stated Notwithstanding any other provision in this Article VIndenture, if on any Conversion Date there exists a Registration Default (as such term is defined in the Registration Rights Agreement), the Company will Holder of any Securities surrendered for conversion shall not be required entitled to adjust any Liquidated Damages under the Registration Rights Agreement; provided, however, that the Conversion Rate for the issuance of shares Securities surrendered for conversion on such date only shall be increased such that the Conversion Rate on such Conversion Date or on any Trading Day in determining the Settlement Amount pursuant to Section 10.02 shall be an amount equal to 103% of the Company’s Common Stock, including then applicable Conversion Rate on such date. The Company will not take any action that would result in connection an adjustment pursuant to this Section 10 without complying with satisfaction the shareholder approval rules of the Company’s conversion obligation in a combination of cash and shares of the Company’s Common Stock, The New York Stock Exchange or any securities convertible into or exchangeable for shares of stock exchange on which the Company’s Common Stock or is listed at the right to purchase shares of the Company’s Common Stock or such convertible or exchangeable securitiesrelevant time.

Appears in 1 contract

Samples: Indenture (CapLease, Inc.)

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