Conversion and Term Clause Samples
The "Conversion and Term" clause defines the conditions and process by which one type of security or agreement, such as a convertible note or preferred stock, can be converted into another form, typically common stock, and specifies the duration or term during which this conversion is possible. In practice, this clause outlines the conversion ratio, triggers for conversion (such as a financing round or maturity date), and any limitations or deadlines for exercising conversion rights. Its core function is to provide clarity and predictability for both parties regarding when and how conversion can occur, thereby reducing uncertainty and potential disputes over the terms of conversion.
Conversion and Term. Subject to earlier forfeiture, termination, acceleration or cancellation of the Option Units as provided in the LLC Agreement, Plan or this Award Agreement, until the Expiration Date, Vested Option Units shall be convertible at the Participant’s election into a number of LTIP Units, as determined in accordance with the LLC Agreement, which in turn are convertible into Class A Common Units and Shares as provided in the LLC Agreement. For purposes of this Award Agreement, “Expiration Date” means the earlier of (a) the date of the Participant’s termination of employment by the Employer for Cause, and (b) the tenth (10th) anniversary of the Grant Date. Upon the Expiration Date, any Option Units which have not been converted into Vested LTIP Units shall terminate, be cancelled for no consideration and be without further force or effect.
Conversion and Term. Subject to earlier forfeiture, termination, acceleration or cancellation of the Formation Units as provided in the Partnership
Conversion and Term. Subject to earlier forfeiture, termination, acceleration or cancellation of the AO LTIP Units as provided in the Partnership
Conversion and Term. Subject to earlier forfeiture, termination, acceleration or cancellation of the AO LTIP Units as provided in the Partnership Agreement, Plan or this Award Agreement, until the Expiration Date (or such later time as set forth in the Employee’s employment agreement), vested AO LTIP Units shall be convertible at the Employee’s election into a number of LTIP Units, as determined in accordance with the Partnership Agreement, which in turn are convertible into Common Partnership Units and common Shares (“Common Shares”) as provided in the Partnership Agreement. For purposes of this Award Agreement, “Expiration Date” means the earlier of (a) the date of the Employee’s termination of employment by the Company for Cause, and (b) the tenth (10th) anniversary of the Grant Date. Unless otherwise provided in an agreement between the Company and the Employee, upon the Expiration Date any AO LTIP Units which have not been converted into LTIP Units shall terminate, be cancelled for no consideration and be without further force or effect.
Conversion and Term. On April 10, 2019, the Company was converted into a California limited liability company from a California corporation by the filing of Articles of Organization – Conversion (the “Articles”) with the Secretary of State of the State of California. The Company’s term shall be perpetual, until terminated as provided in this Agreement or the Act.