Common use of Notice of Dividends Clause in Contracts

Notice of Dividends. If the Board of Directors of Company proposes to declare any dividend or other distribution on its Common Stock, except by way of a stock dividend payable on its Common Stock, Company shall mail notice thereof to the holder of this Warrant as soon as possible (such notice being referred to as the "DISTRIBUTION NOTICE"). Company shall not fix a record date until the lapse of a 10-day period beginning on the date of delivery of the Distribution Notice. The holder of this Warrant shall not participate in such dividend or other distribution or be entitled to any rights on account or as a result thereof unless and to the extent that this Warrant is exercised prior to such record date. The provisions of this paragraph shall not apply to distributions made in connection with transactions covered by Section 4.