Common use of Corporate Distribution Clause in Contracts

Corporate Distribution. In the event of a Corporate Distribution, the Company will send a written notice to the Holder notifying the Holder of such Corporate Distribution at least twenty (20) days prior to the date of such Corporate Distribution and the Holder will have the right, at its option and upon written notice to the Company no later than 5 days prior to the date of the Corporate Distribution, to either (i) with respect to the vested portion of the Warrant, receive an amount equal to the product of (a) the amount per Common Share of any cash, securities or other property or consideration that the Holder would have been entitled to receive on an equal and pro rata basis with any holders of Common Shares, had the vested portion of this Warrant been exercised immediately prior to the consummation of such Corporate Distribution (such amount per Common Share, the “Per Share Distribution Amount”) and (b) the number of Warrant Shares that the Holder would have been entitled to receive had the vested portion of this Warrant been exercised immediately prior to the consummation of the Corporate Distribution or (ii) with respect to both the vested and unvested portions of this Warrant, have the Exercise Price be reduced to a price determined by subtracting the Per Share Distribution Amount from the Exercise Price in effect immediately prior to the consummation of such Corporate Distribution, provided that in no event shall the Exercise Price be less than the par value of the Common Shares. The Holder shall have the option to exercise all or any portion of its rights under both clause (i) and clause (ii) of the prior sentence.

Appears in 5 contracts

Samples: Warrant Subscription Agreement (Third Point Reinsurance Ltd.), Warrant Agreement (Third Point Reinsurance Ltd.), Warrant Agreement (Third Point Reinsurance Ltd.)

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