{"component": "clause", "props": {"groups": [{"snippet": "The Company shall not be required to issue any fractional share upon exercise of the Option, but it shall pay to the Optionee or to his or her personal representative or beneficiary who acquires the right to exercise the Option by bequest or inheritance on the death of the Optionee, the cash equivalent of any fractional share interests, as determined in the sole discretion of the Board or the Committee.", "samples": [{"hash": "j3tNLh6GErx", "uri": "/contracts/j3tNLh6GErx#fractional-share", "label": "Stock Option Agreement (Comc Inc)", "score": 16.0, "published": true}, {"hash": "fJNKzrgvso4", "uri": "/contracts/fJNKzrgvso4#fractional-share", "label": "Stock Option Agreement (Comc Inc)", "score": 16.0, "published": true}, {"hash": "codrmmYCnG5", "uri": "/contracts/codrmmYCnG5#fractional-share", "label": "Stock Option Agreement (Comc Inc)", "score": 16.0, "published": true}], "size": 9, "snippet_links": [{"key": "the-company-shall", "type": "clause", "offset": [0, 17]}, {"key": "to-issue", "type": "clause", "offset": [34, 42]}, {"key": "upon-exercise-of-the-option", "type": "clause", "offset": [64, 91]}, {"key": "to-the-optionee", "type": "definition", "offset": [110, 125]}, {"key": "personal-representative", "type": "definition", "offset": [143, 166]}, {"key": "right-to-exercise", "type": "clause", "offset": [199, 216]}, {"key": "death-of-the-optionee", "type": "clause", "offset": [261, 282]}, {"key": "cash-equivalent", "type": "clause", "offset": [288, 303]}, {"key": "fractional-share-interests", "type": "clause", "offset": [311, 337]}, {"key": "discretion-of-the-board", "type": "clause", "offset": [365, 388]}, {"key": "the-committee", "type": "clause", "offset": [392, 405]}], "hash": "de5957a542a22eb3409a269f9fec1ce1", "id": 2}, {"snippet": "A fractional Share shall not be issuable hereunder, and when any provision hereof may entitle the Participant to a fractional Share, such fraction shall (unless the Administrator determines otherwise) be disregarded.", "samples": [{"hash": "kNWSvLy7r70", "uri": "/contracts/kNWSvLy7r70#fractional-share", "label": "Nonqualified Option Agreement (Bb&t Corp)", "score": 25.3258037567, "published": true}, {"hash": "4xCEL50Smyu", "uri": "/contracts/4xCEL50Smyu#fractional-share", "label": "Nonqualified Option Agreement (Bb&t Corp)", "score": 22.3319644928, "published": true}, {"hash": "i5rj03XnOuf", "uri": "/contracts/i5rj03XnOuf#fractional-share", "label": "Nonqualified Option Agreement (Bb&t Corp)", "score": 21.5982208252, "published": true}], "size": 17, "snippet_links": [{"key": "the-participant", "type": "clause", "offset": [94, 109]}, {"key": "the-administrator", "type": "clause", "offset": [161, 178]}], "hash": "1b11ed532f81b36adad24e621b9c52e1", "id": 1}, {"snippet": "No fractional shares of Common Stock shall be issued to any Warrantholder in connection with the exercise of this Warrant. Instead of any fractional shares of Common Stock that would otherwise be issuable to such Warrantholder, the Company will pay to such Warrantholder a cash adjustment in respect of such fractional interest in an amount equal to that fractional interest of the then current fair market value per share of Common Stock (based on the Closing Sale Price).", "samples": [{"hash": "bl5Io6mjSLz", "uri": "/contracts/bl5Io6mjSLz#fractional-share", "label": "Warrant Agreement (Copytele Inc)", "score": 24.0773448944, "published": true}, {"hash": "4Zir6gxeDk6", "uri": "/contracts/4Zir6gxeDk6#fractional-share", "label": "Warrant Agreement (Copytele Inc)", "score": 22.1088294983, "published": true}, {"hash": "2dICWg6bGtl", "uri": "/contracts/2dICWg6bGtl#fractional-share", "label": "Warrant Agreement (Copytele Inc)", "score": 22.1088294983, "published": true}], "size": 6, "snippet_links": [{"key": "stock-shall", "type": "definition", "offset": [31, 42]}, {"key": "issued-to", "type": "definition", "offset": [46, 55]}, {"key": "in-connection-with", "type": "clause", "offset": [74, 92]}, {"key": "exercise-of-this-warrant", "type": "clause", "offset": [97, 121]}, {"key": "the-company-will", "type": "clause", "offset": [228, 244]}, {"key": "pay-to", "type": "definition", "offset": [245, 251]}, {"key": "cash-adjustment", "type": "definition", "offset": [273, 288]}, {"key": "in-respect-of", "type": "definition", "offset": [289, 302]}, {"key": "fractional-interest", "type": "clause", "offset": [308, 327]}, {"key": "equal-to", "type": "definition", "offset": [341, 349]}, {"key": "fair-market-value-per-share-of-common-stock", "type": "definition", "offset": [395, 438]}, {"key": "based-on", "type": "clause", "offset": [440, 448]}, {"key": "closing-sale-price", "type": "definition", "offset": [453, 471]}], "hash": "2e4280bab072f611621b44e5f0914f98", "id": 4}, {"snippet": "No fractional share shall be issuable upon exercise or conversion of this Warrant and the number of shares to be issued shall be rounded down to the nearest whole share. If the exercise or conversion of this Warrant shall result in the issuance of any fractional share, the Company shall eliminate such fractional share by paying the Holder an amount computed by multiplying such fraction by the fair market value of a full share.", "samples": [{"hash": "dJMCzuntvCh", "uri": "/contracts/dJMCzuntvCh#fractional-share", "label": "Purchase Agreement (Distributed Energy Systems Corp)", "score": 21.0, "published": true}, {"hash": "bPYwxlLlHn0", "uri": "/contracts/bPYwxlLlHn0#fractional-share", "label": "Securities Purchase Agreement (Distributed Energy Systems Corp)", "score": 21.0, "published": true}], "size": 4, "snippet_links": [{"key": "no-fractional-share", "type": "clause", "offset": [0, 19]}, {"key": "conversion-of", "type": "clause", "offset": [55, 68]}, {"key": "this-warrant", "type": "clause", "offset": [69, 81]}, {"key": "number-of-shares-to-be-issued", "type": "clause", "offset": [90, 119]}, {"key": "the-issuance", "type": "clause", "offset": [232, 244]}, {"key": "the-company-shall", "type": "clause", "offset": [270, 287]}, {"key": "the-holder", "type": "clause", "offset": [330, 340]}, {"key": "the-fair-market-value", "type": "clause", "offset": [392, 413]}], "hash": "2a61faf330943d9c21d82b5c055210e5", "id": 6}, {"snippet": "Series A Shares may be issued by fractions of a share which shall entitle the holder, in proportion to such holder's fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of Series A Shares.", "samples": [{"hash": "hhHjp8iuaih", "uri": "/contracts/hhHjp8iuaih#fractional-share", "label": "Rights Agreement (Urstadt Biddle Properties Inc)", "score": 18.0, "published": true}, {"hash": "foZleJ9ng6r", "uri": "/contracts/foZleJ9ng6r#fractional-share", "label": "Rights Agreement (Urstadt Biddle Properties Inc)", "score": 18.0, "published": true}, {"hash": "7aDeQ50ER0n", "uri": "/contracts/7aDeQ50ER0n#fractional-share", "label": "Rights Agreement (Urstadt Biddle Properties Inc)", "score": 18.0, "published": true}], "size": 6, "snippet_links": [{"key": "series-a-shares", "type": "definition", "offset": [0, 15]}, {"key": "issued-by", "type": "definition", "offset": [23, 32]}, {"key": "fractions-of-a-share", "type": "clause", "offset": [33, 53]}, {"key": "the-holder", "type": "clause", "offset": [74, 84]}, {"key": "fractional-shares", "type": "clause", "offset": [117, 134]}, {"key": "to-exercise", "type": "clause", "offset": [136, 147]}, {"key": "voting-rights", "type": "definition", "offset": [148, 161]}, {"key": "participate-in", "type": "definition", "offset": [182, 196]}, {"key": "distributions-and", "type": "clause", "offset": [197, 214]}, {"key": "the-benefit", "type": "definition", "offset": [223, 234]}, {"key": "holders-of-series-a", "type": "clause", "offset": [258, 277]}], "hash": "1ac161714165d057871f7872574f5ea0", "id": 3}, {"snippet": "The Participant may become vested and have a nonforfeitable right under the 2014 Stock Award and/or the 2015 Stock Award only to whole shares of Class A Common Stock. If the terms of the 2014 Stock Award and/or the 2015 Stock Award would entitle the Participant to become vested or have a nonforfeitable right in a fractional share of Class A Common Stock, such fractional share shall be disregarded or forfeited.", "samples": [{"hash": "gycwlbTogEm", "uri": "/contracts/gycwlbTogEm#fractional-share", "label": "Stock Award Agreement (Bluerock Residential Growth REIT, Inc.)", "score": 25.1464748383, "published": true}, {"hash": "aD1JYG93Dc1", "uri": "/contracts/aD1JYG93Dc1#fractional-share", "label": "Stock Award Agreement (Bluerock Residential Growth REIT, Inc.)", "score": 25.1464748383, "published": true}, {"hash": "8dBHpCh9aID", "uri": "/contracts/8dBHpCh9aID#fractional-share", "label": "Stock Award Agreement (Bluerock Residential Growth REIT, Inc.)", "score": 25.1464748383, "published": true}], "size": 5, "snippet_links": [{"key": "the-participant", "type": "clause", "offset": [0, 15]}, {"key": "stock-award", "type": "definition", "offset": [81, 92]}, {"key": "class-a-common-stock", "type": "definition", "offset": [145, 165]}, {"key": "terms-of-the", "type": "clause", "offset": [174, 186]}], "hash": "851c83132ee88734406b2bf9a41546db", "id": 5}, {"snippet": "No fractional shares of stock will be issued in connection with any exercise hereunder, but in lieu of such fractional shares the Company shall make a cash payment therefor upon the basis of the then fair market value of the stock to be issued upon the exercise hereof.", "samples": [{"hash": "lHzuiWyBqUZ", "uri": "/contracts/lHzuiWyBqUZ#fractional-share", "label": "Warrant Agreement (Argos Therapeutics Inc)", "score": 20.5715255737, "published": true}, {"hash": "1e17SCZrEoH", "uri": "/contracts/1e17SCZrEoH#fractional-share", "label": "Warrant Agreement (Argos Therapeutics Inc)", "score": 20.5715255737, "published": true}, {"hash": "NBKHuMvtIW", "uri": "/contracts/NBKHuMvtIW#fractional-share", "label": "Warrant Agreement (Icagen Inc)", "score": 19.0, "published": true}], "size": 3, "snippet_links": [{"key": "shares-of-stock", "type": "definition", "offset": [14, 29]}, {"key": "in-connection-with", "type": "clause", "offset": [45, 63]}, {"key": "in-lieu-of", "type": "clause", "offset": [92, 102]}, {"key": "the-company-shall", "type": "clause", "offset": [126, 143]}, {"key": "cash-payment", "type": "clause", "offset": [151, 163]}, {"key": "basis-of", "type": "clause", "offset": [182, 190]}, {"key": "stock-to-be-issued", "type": "clause", "offset": [225, 243]}], "hash": "38d3cb6faecd9eccb93d3ab0c62926f7", "id": 7}, {"snippet": "The Company shall not be required to issue a fractional Warrant Share upon exercise of any Warrant. As to any fraction of a Warrant Share that the Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay to such Holder an amount in cash (by delivery of a certified or official bank check or by wire transfer of immediately available funds) equal to the product of (i) such fraction multiplied by (ii) the Fair Market Value of one Warrant Share on the Exercise Date.", "samples": [{"hash": "jxAww3XFJ2w", "uri": "/contracts/jxAww3XFJ2w#fractional-share", "label": "Business Combination Agreement (Maywood Acquisition Corp.)", "score": 36.7837104797, "published": true}, {"hash": "9SJgwEddrgy", "uri": "/contracts/9SJgwEddrgy#fractional-share", "label": "Business Combination Agreement (Maywood Acquisition Corp.)", "score": 36.7837104797, "published": true}, {"hash": "caYESLjmE2e", "uri": "/contracts/caYESLjmE2e#fractional-share", "label": "Warrant Agreement (Inflection Point Acquisition Corp. III)", "score": 35.6468162537, "published": true}], "size": 3, "snippet_links": [{"key": "the-company-shall", "type": "clause", "offset": [0, 17]}, {"key": "to-issue", "type": "clause", "offset": [34, 42]}, {"key": "fractional-warrant-share", "type": "definition", "offset": [45, 69]}, {"key": "exercise-of", "type": "clause", "offset": [75, 86]}, {"key": "a-warrant", "type": "definition", "offset": [122, 131]}, {"key": "the-holder", "type": "clause", "offset": [143, 153]}, {"key": "pay-to", "type": "definition", "offset": [232, 238]}, {"key": "delivery-of-a", "type": "clause", "offset": [273, 286]}, {"key": "transfer-of", "type": "clause", "offset": [331, 342]}, {"key": "immediately-available-funds", "type": "definition", "offset": [343, 370]}, {"key": "equal-to", "type": "definition", "offset": [372, 380]}, {"key": "the-product", "type": "definition", "offset": [381, 392]}, {"key": "the-fair-market-value", "type": "clause", "offset": [433, 454]}, {"key": "exercise-date", "type": "clause", "offset": [483, 496]}], "hash": "a543972503f1543c8eb39d175cf78558", "id": 8}, {"snippet": "No fraction of a Jabil Share will be issued by virtue of the Merger, but in lieu thereof each holder of GET Shares who would otherwise be entitled to a fraction of a Jabil Share (after aggregating all fractional Jabil Shares to be received by such holder) will receive from Jabil an amount of cash (rounded to the nearest whole cent) equal to the product of (a) such fractional share, multiplied by (b) the Jabil Stock Price.", "samples": [{"hash": "6mHiwqSUD9q", "uri": "/contracts/6mHiwqSUD9q#fractional-share", "label": "Merger Agreement (Jabil Circuit Inc)", "score": 18.0, "published": true}, {"hash": "10vU2ydgO7i", "uri": "/contracts/10vU2ydgO7i#fractional-share", "label": "Merger Agreement (Jabil Circuit Inc)", "score": 18.0, "published": true}], "size": 2, "snippet_links": [{"key": "issued-by", "type": "definition", "offset": [37, 46]}, {"key": "the-merger", "type": "clause", "offset": [57, 67]}, {"key": "in-lieu", "type": "definition", "offset": [73, 80]}, {"key": "received-by", "type": "definition", "offset": [231, 242]}, {"key": "rounded-to", "type": "clause", "offset": [299, 309]}, {"key": "equal-to", "type": "definition", "offset": [334, 342]}, {"key": "the-product", "type": "definition", "offset": [343, 354]}, {"key": "stock-price", "type": "definition", "offset": [413, 424]}], "hash": "585b0a981a9232b38a1127cad12b6e67", "id": 9}, {"snippet": "The Company will not issue a fractional share of Common Stock upon conversion of a Note. Instead, the Company shall pay Cash in lieu of fractional shares based on the Closing Price of Common Stock on the last Trading Day of the relevant Observation Period.", "samples": [{"hash": "lPA5ngYXcNB", "uri": "/contracts/lPA5ngYXcNB#fractional-share", "label": "Indenture (Micron Technology Inc)", "score": 24.1156749725, "published": true}, {"hash": "fHBW3uc4spl", "uri": "/contracts/fHBW3uc4spl#fractional-share", "label": "Indenture (Micron Technology Inc)", "score": 24.1156749725, "published": true}], "size": 2, "snippet_links": [{"key": "the-company-will", "type": "clause", "offset": [0, 16]}, {"key": "conversion-of", "type": "clause", "offset": [67, 80]}, {"key": "a-note", "type": "definition", "offset": [81, 87]}, {"key": "the-company-shall", "type": "clause", "offset": [98, 115]}, {"key": "cash-in-lieu-of-fractional-shares", "type": "clause", "offset": [120, 153]}, {"key": "based-on", "type": "clause", "offset": [154, 162]}, {"key": "stock-on", "type": "definition", "offset": [191, 199]}, {"key": "day-of", "type": "clause", "offset": [217, 223]}, {"key": "the-relevant", "type": "clause", "offset": [224, 236]}, {"key": "observation-period", "type": "clause", "offset": [237, 255]}], "hash": "ec1045df8f41b0c1c654a0ea8d659e64", "id": 10}], "next_curs": "ClkSU2oVc35sYXdpbnNpZGVyY29udHJhY3RzcjULEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhlmcmFjdGlvbmFsLXNoYXJlIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"size": 77, "title": "Fractional Share", "children": [["", ""], ["protective-covenants", "Protective Covenants"], ["ranking", "Ranking"], ["redemption", "Redemption"], ["designation-and-amount", "Designation and Amount"]], "parents": [["certain-adjustment", "Certain Adjustment"], ["adjustment-for-certain-events", "Adjustment for Certain Events"], ["conversion", "Conversion"], ["severability", "SEVERABILITY"], ["determination-and-actions-by-the-directors-etc", "DETERMINATION AND ACTIONS BY THE DIRECTORS; ETC"]], "id": "fractional-share", "related": [["fractional-shares", "Fractional Shares", "<strong>Fractional Shares</strong>"], ["fractional-rights-and-fractional-shares", "Fractional Rights and Fractional Shares", "Fractional Rights and <strong>Fractional Shares</strong>"], ["fractional-warrants-and-fractional-shares", "Fractional Warrants and Fractional Shares", "Fractional Warrants and <strong>Fractional Shares</strong>"], ["fractional-shares-of-common-stock", "Fractional Shares of Common Stock", "<strong>Fractional Shares</strong> of Common Stock"], ["cash-in-lieu-of-fractional-shares", "Cash in Lieu of Fractional Shares", "Cash in Lieu of <strong>Fractional Shares</strong>"]], "related_snippets": [], "updated": "2026-02-07T04:24:37+00:00", "also_ask": ["What key protections should be included to prevent dilution of fractional shareholders\u2019 rights?", "How can the clause be structured to maximize flexibility for future capital raises?", "What are the most common legal pitfalls in drafting fractional share provisions?", "How do courts typically interpret and enforce fractional share clauses in shareholder disputes?", "How do fractional share rights compare to full share rights under relevant corporate law?"], "drafting_tip": "Define how fractional shares are created to prevent disputes; specify rights attached to fractional shares to ensure clarity; outline procedures for handling fractions to facilitate smooth transactions.", "explanation": "A Fractional Share clause defines the treatment and rights associated with ownership of less than one whole share of a security or asset. In practice, this clause outlines how fractional shares may be created, such as through stock splits, dividend reinvestment plans, or mergers, and specifies whether holders of fractional shares are entitled to dividends, voting rights, or cash payments in lieu of full shares. The core function of this clause is to ensure clarity and fairness in handling partial share interests, preventing disputes and administrative confusion when transactions result in non-whole shareholdings."}, "json": true, "cursor": ""}}