Common use of Certain Trading Restrictions Clause in Contracts

Certain Trading Restrictions. (a) Each Purchaser agrees that it will not enter into and will not encourage or assist others into entering on its behalf into any Short Sales (as hereinafter defined) or have other Persons do so on their behalf for so long as its holds Debentures. For purposes hereof, a "Short Sale" by a Purchaser shall mean a sale of Common Stock by a Purchaser that is marked as a short sale and that is made at a time when there is no equivalent offsetting long position in the Common Stock held by such Purchaser. For purposes of determining whether there is an equivalent offsetting long position in the Common Stock held by a Purchaser, on any date of computation, Underlying Shares that would be issuable upon the conversion in full of the Debentures or exercise in full of the Warrants held by such Purchaser shall be deemed to be held long by such Purchaser.

Appears in 3 contracts

Samples: Convertible Debenture Purchase Agreement (Eltrax Systems Inc), Purchase Agreement (Verso Technologies Inc), Convertible Debenture Purchase Agreement (Onemain Com Inc)

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Certain Trading Restrictions. (a) Each Purchaser agrees that it will not enter into and will not encourage or assist others into entering on its behalf into any Short Sales (as hereinafter defined) or have other Persons do so on it or their behalf for so long as its holds Debenturesthe Debenture. For purposes hereof, a "Short Sale" by a Purchaser shall mean a sale of Common Stock by a such Purchaser that is marked as a short sale and that is made at a time when there is no equivalent offsetting long position in the Common Stock held by such Purchaser. For purposes of determining whether there is an equivalent offsetting long position in the Common Stock held by a Purchaser, on any date of computation, Underlying Shares that would be issuable upon the conversion in full of the Debentures Debenture or exercise in full of the Warrants Warrant held by such Purchaser shall be deemed to be held long by such Purchaser.

Appears in 1 contract

Samples: Warrant Purchase Agreement (Verso Technologies Inc)

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