Common use of Liquidating Dividends Clause in Contracts

Liquidating Dividends. If the Company declares or pays a dividend upon the Common Shares payable otherwise than in cash out of the Company's Accumulated Operating Funds From Operations (a "Liquidating Dividend"), then in each such case the Exercise Price shall be adjusted so that it shall equal the price determined by multiplying (x) the Exercise Price in effect immediately prior to the close of business on the date fixed for the determination of shareholders entitled to receive such Liquidating Dividend by (y) a fraction, the numerator of which shall be the Market Price per Common Share on the record date less the amount of the Liquidating Dividend applicable to one Common Share, and the denominator of which shall be the Market Price per Common Share on the record date. Such adjustment shall become effective immediately at the opening of business on the Business Day next following the record date for the determination of shareholders entitled to receive such Liquidating Dividend.