Common use of DISTRIBUTION OF STOCK, OTHER SECURITIES, EVIDENCE OF INDEBTEDNESS Clause in Contracts

DISTRIBUTION OF STOCK, OTHER SECURITIES, EVIDENCE OF INDEBTEDNESS. In case the Company shall distribute to the holders of Common Shares, shares of its capital stock (other than Common Shares or shares convertible into Common Shares for which adjustment is made under Section 6.1(a)), stock or other securities of the Company or any other Person, evidences of indebtedness issued by the Company or any other Person, assets (excluding cash dividends) or options, Warrants or rights to subscribe for or purchase the foregoing, then, and in each such case, immediately following the record date fixed for the determination of the holders of Common Shares entitled to receive such distribution, the Exercise Price then in effect shall be adjusted by multiplying the Exercise Price in effect immediately prior to such record date by a fraction (i) the numerator of which shall be the Current Market Price applicable to one Common Share less the aggregate Fair Market Value (as determined by the Board of Directors or a duly appointed committee thereof) of the portion of the stock, other securities, evidences of indebtedness so distributed or of such options, warrants or rights applicable to one Common Share (but such numerator shall not be less than one) and (ii) the denominator of which shall be the Current Market Price of one Common Share on such record date (i.e. prior to such shares trading "ex-"). Such adjustment shall become effective at the opening of business on the Business Day following the record date for the determination of stockholders entitled to such distribution.

DISTRIBUTION OF STOCK, OTHER SECURITIES, EVIDENCE OF INDEBTEDNESS. In case the Company shall distribute to the holders of Common SharesStock, shares of its capital stock (other than Common Shares or shares convertible into Common Shares Stock for which adjustment is made under Section 6.1(a)4.01), stock or other securities of the Company or any other Person, evidences of indebtedness issued by the Company or any other Person, assets (excluding cash dividends) or options, Warrants warrants or rights to subscribe for or purchase the foregoing, then, and in each such case, immediately following the record date fixed for the determination of the holders of Common Shares Stock entitled to receive such distribution, (a) the Exercise Price then in effect shall be adjusted by multiplying the Exercise Price in effect immediately prior to such record date by a fraction (i) the numerator of which shall be such the average price of one share of Common Stock on the OTCBB on the ten (10) trading days preceding such record date (“Current Market Price applicable to one Common Share Price”) less the aggregate Fair Market Value then fair market value (as determined by the Board of Directors or a duly appointed committee thereof) of the portion of the stock, other securities, evidences of indebtedness so distributed or of such options, warrants or rights applicable to one share of Common Share Stock (but such numerator shall not be less than one0.10) and (ii) the denominator of which shall be the Current Market Price of one share of Common Share Stock on such record date and (i.e. b) the number of Warrant Shares shall be adjusted to equal (i) the number of Warrant Shares for which this Warrant is exercisable immediately prior to such shares trading "ex-")adjustment multiplied by the Exercise Price then in effect, divided by (ii) the Exercise Price as adjusted pursuant to clause (a) above. Such adjustment shall become effective at the opening of business on the Business Day business day following the record date for the determination of stockholders entitled to such distribution.

DISTRIBUTION OF STOCK, OTHER SECURITIES, EVIDENCE OF INDEBTEDNESS. In case the Company shall distribute to the holders of Common Shares, shares of its capital stock (other than Common Shares or shares convertible into Common Shares for which adjustment is made under Section 6.1(a)), stock or other securities of the Company or any other Person, evidences of indebtedness issued by the Company or any other Person, assets (excluding cash dividends) or options, Warrants or rights to subscribe for or purchase the foregoing, then, and in each such case, immediately following the record date fixed for the determination of the holders of Common Shares entitled to receive such distribution, the Exercise Price then in effect shall be adjusted by multiplying the Exercise Price in effect immediately prior to such record date by a fraction (i) the numerator of which shall be the such Current Market Price applicable to one of the Common Share Shares less the aggregate then Fair Market Value (as determined by the Board of Directors or a duly appointed committee thereof) of the portion of the stock, other securities, evidences of indebtedness so distributed or of such options, warrants or rights applicable to one Common Share (but such numerator shall not be less than one) and (ii) the denominator of which shall be the Current Market Price of one Common Share on such record date (i.e. prior to such shares trading "ex-"). Such adjustment shall become effective at the opening of business on the Business Day following the record date for the determination of stockholders entitled to such distribution.become