Common use of Conversion Events Clause in Contracts

Conversion Events. Subject to the provisions hereinafter set forth, all of the principal amount of this Note and accrued Interest thereon shall be convertible at the option of the Holder thereof into fully paid and nonassessable shares of Common Stock: (i) for a period of thirty (30) days following any termination by Ecrix Corporation ("Ecrix") of the Merger Agreement, for any reason other than the intentional breach of the Merger Agreement by the Company; or (ii) for a period of thirty (30) days following any termination of the Merger Agreement by the Company as a result of the intentional breach of the Merger Agreement by Ecrix. The events set forth in Sections 2(a)(i) and (ii) are defined as "Conversion Events." The number of shares of Common Stock to be issued upon conversion of the Note (the "Conversion Shares") shall be equal to one (1) share of Common Stock for each $.80 in principal amount of the Note and accrued Interest thereon being converted (the "Conversion Amount"), subject to adjustment from time to time pursuant to paragraph (f) of this Section 2. If Holder does not elect to convert the Note into Common Stock as provided herein within thirty (30) days after the occurrence of a Conversion Event, then the Stated Maturity Date shall be automatically extended to August 22, 2002 and the Interest Rate on the Note shall increase to 15% as of the termination date of the Merger Agreement and shall continue to increase by an additional 1.0% per annum for each 90-day period until the Maturity Date. If both (x) the Merger has not been consummated by December 31, 2001 and (y) the Merger Agreement has not been terminated on or prior to that date, then the Stated Maturity Date shall be automatically extended to the earlier to occur of (I) the date the Merger is consummated or (II) the date the Merger Agreement is terminated.