Common use of Additional Securities and Distributions Clause in Contracts

Additional Securities and Distributions. (a) Any securities or cash received (other than a regular cash dividend) as the result of ownership of the Restricted Shares (the “Additional Securities”), including, but not by way of limitation, warrants, options and securities received as a stock dividend or stock split, or as a result of a recapitalization or reorganization or other similar change in the Company’s capital structure, shall be retained by the Broker in the same manner and subject to the same conditions and restrictions as the Shares with respect to which they were issued. The Grantee shall be entitled to direct Connetics to exercise any warrant or option received as Additional Securities if the Grantee supplies the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the Grantee may not direct Connetics to sell any such warrant or option. If Additional Securities consist of a convertible security, the Grantee may exercise any conversion right, and any securities so acquired shall constitute Additional Securities. If there is any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization, reorganization or other transaction that results in the creation of Additional Securities, Connetics or the Broker is authorized to deliver to the issuer the certificates evidencing the Shares or the Additional Securities in exchange for the certificates of the replacement securities. (b) Connetics shall disburse to the Grantee all regular cash dividends with respect to the Shares and Additional Securities (whether vested or not), less any applicable withholding obligations.

Additional Securities and Distributions. (a) a. Any securities or cash received (other than a regular cash dividend) as the result of ownership of the Restricted Shares (the “Additional Securities”), including, but not by way of limitation, warrants, options and securities received as a stock dividend or stock split, or as a result of a recapitalization or reorganization or other similar change transaction described in Section 4(b) of the Company’s capital structurePlan, shall be retained by the Broker in escrow in the same manner and subject to the same conditions and restrictions as the Shares with respect to which they were issued, including, without limitation, the Selling Restrictions set forth in Section 6(e) of the Plan. The Grantee You shall be entitled to direct Connetics the Company to exercise any warrant or option received as Additional Securities if the Grantee supplies upon supplying the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the Grantee you may not direct Connetics the Company to sell any such warrant or option. If Additional Securities consist of a convertible security, the Grantee you may exercise any conversion right, and any securities so acquired shall constitute Additional Securities. If there is In the event of any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization, reorganization or other transaction that results in the creation of Additional Securities, Connetics or the Broker escrow holder is authorized to deliver to the issuer the certificates evidencing the Shares or the Additional Securities in exchange for the certificates of the replacement securities. (b) Connetics b. The Company shall disburse to the Grantee you all regular cash dividends with respect to the Shares and Additional Securities (whether vested or not), less any applicable withholding obligations.

Additional Securities and Distributions. (a) Any securities or cash received (other than a regular cash dividend) as the result of ownership of the Restricted Shares (the “Additional Securities”), including, but not by way of limitation, warrants, options and securities received as a stock dividend or stock split, or as a result of a recapitalization or reorganization or other similar change in the Company’s capital structure, shall be retained by the Broker in escrow in the same manner and subject to the same conditions and restrictions as the Unreleased Shares with respect to which they were issued, including, without limitation, the Repurchase Option, set forth in the Agreement applicable to the Unreleased Shares during the Restriction Period. The Grantee Holder shall be entitled to direct Connetics the Company to exercise any warrant or option received as Additional Securities if the Grantee supplies upon supplying the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the Grantee Holder may not direct Connetics the Company to sell any such warrant or option. If Additional Securities consist of a convertible security, the Grantee Holder may exercise any conversion right, and any securities so acquired shall constitute Additional Securities. If there is In the event of any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization, reorganization or other transaction that results in the creation of Additional Securities, Connetics or the Broker Escrow Holder is authorized to deliver to the issuer the certificates evidencing the Shares or the Additional Securities in exchange for the certificates of the replacement securities. (b) Connetics The Company shall disburse to the Grantee Holder all regular cash dividends with respect to the Shares and Additional Securities (whether vested or not), less any applicable withholding obligations. (c) In the event that the Repurchase Option is exercised or deemed exercised, the sole right and remedy of the Holder thereafter with respect to the Unreleased Shares shall be to receive the Repurchase Price, and in no case shall the Holder have any claim of ownership as to any of the Unreleased Shares.

Additional Securities and Distributions. (a) Any securities or cash received (other than a regular cash dividend) as the result of ownership of the Restricted Shares (the “Additional Securities”), including, but not by way of limitation, warrants, options and securities received as a stock dividend or stock split, or as a result of a recapitalization or reorganization or other similar change in the Company’s capital structure, shall be retained by the Broker in escrow in the same manner and subject to the same conditions and restrictions as the Restricted Shares with respect to which they were issued, including, without limitation, the Vesting Schedule set forth in the Notice and the Selling Restrictions and Repurchase Right set forth in the Agreement. The Grantee shall be entitled to direct Connetics the Company to exercise any warrant or option received as Additional Securities if the Grantee supplies upon supplying the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the Grantee may not direct Connetics the Company to sell any such warrant or option. If Additional Securities consist of a convertible security, the Grantee may exercise any conversion right, and any securities so acquired shall constitute Additional Securities. If there is In the event of any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization, reorganization or other transaction that results in the creation of Additional Securities, Connetics or the Broker escrow holder is authorized to deliver to the issuer the certificates evidencing the Shares or the Additional Securities in exchange for the certificates of the replacement securities. (b) Connetics The Company shall disburse to the Grantee all regular cash dividends with respect to the Shares and Additional Securities (whether vested or not), less any applicable withholding obligations.

Additional Securities and Distributions. (a) Any securities or cash received (other than a regular cash dividend) as the result of ownership of the Restricted Shares (the “Additional Securities”), including, but not by way of limitation, warrants, options and securities received as a stock dividend or stock split, or as a result of a recapitalization or reorganization or other similar change in the Company’s capital structure, shall be transferred to the Trustee on the Grantee's behalf, or, with respect to Additional Securities issued in respect of certificated Restricted Securities that are not held by a Trustee, retained by the Broker in escrow in the same manner and subject to the same conditions and restrictions as the Restricted Shares with respect to which they were issued, including, without limitation, the Vesting Schedule set forth in the Notice. The Grantee shall be entitled to direct Connetics the Company to exercise any warrant or option received as Additional Securities if the Grantee supplies upon supplying the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the Grantee may not direct Connetics the Company to sell any such warrant or option. If Additional Securities consist of a convertible security, the Grantee may exercise any conversion right, and any securities so acquired shall constitute Additional Securities. If there is In the event of any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization, reorganization or other transaction that results in the creation of Additional Securities, Connetics or the Broker escrow holder is authorized to deliver to the issuer the certificates evidencing the Shares or the Additional Securities in exchange for the certificates of the replacement securities. (b) Connetics shall disburse to the Grantee all regular cash dividends with respect to the Shares and Additional Securities (whether vested or not), less any applicable withholding obligations.

Additional Securities and Distributions. (a) Any securities or cash received (other than a regular cash dividend) as the result of ownership of the Restricted Shares (the “Additional Securities”"), including, but not by way of limitation, warrants, options and securities received as a stock dividend or stock split, or as a result of a recapitalization or reorganization or other similar change in the Company’s capital structure, shall be retained by the Broker in the same manner and subject to the same conditions and restrictions as the Shares with respect to which they were issued. The Grantee shall be entitled to direct Connetics to exercise any warrant or option received as Additional Securities if the Grantee supplies the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the Grantee may not direct Connetics to sell any such warrant or option. If Additional Securities consist of a convertible security, the Grantee may exercise any conversion right, and any securities so acquired shall constitute Additional Securities. If there is any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization, reorganization or other transaction that results in the creation of Additional Securities, Connetics or the Broker is authorized to deliver to the issuer the certificates evidencing the Shares or the Additional Securities in exchange for the certificates of the replacement securities. (b) Connetics shall disburse to the Grantee all regular cash dividends with respect to the Shares and Additional Securities (whether vested or not), less any applicable withholding obligations.