{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "the-holder", "type": "clause", "offset": [59, 69]}, {"key": "to-convert", "type": "clause", "offset": [92, 102]}, {"key": "terms-of-this-note", "type": "clause", "offset": [119, 137]}, {"key": "number-of-conversion-shares", "type": "clause", "offset": [184, 211]}, {"key": "owned-by", "type": "definition", "offset": [304, 312]}, {"key": "exercise-of-warrants", "type": "clause", "offset": [342, 362]}, {"key": "stock-of-the-borrower", "type": "clause", "offset": [429, 450]}, {"key": "purposes-of-the", "type": "clause", "offset": [460, 475]}, {"key": "beneficial-ownership", "type": "clause", "offset": [508, 528]}, {"key": "in-accordance-with", "type": "definition", "offset": [549, 567]}, {"key": "the-exchange-act", "type": "definition", "offset": [585, 601]}, {"key": "the-conversion-shares", "type": "clause", "offset": [635, 656]}, {"key": "section-32", "type": "definition", "offset": [686, 697]}, {"key": "null-and-void", "type": "clause", "offset": [725, 738]}, {"key": "notice-to-borrower", "type": "definition", "offset": [751, 769]}, {"key": "upon-the-occurrence-and-during", "type": "clause", "offset": [770, 800]}, {"key": "period-of", "type": "clause", "offset": [845, 854]}, {"key": "an-event-of-default", "type": "clause", "offset": [855, 874]}, {"key": "notice-to-the-borrower", "type": "clause", "offset": [898, 920]}], "size": 28, "samples": [{"hash": "nk1RSZ4nWa", "uri": "/contracts/nk1RSZ4nWa#conversion-limitation", "label": "Secured Convertible Minimum Borrowing Note (Global Payment Technologies Inc)", "score": 18.0, "published": true}, {"hash": "fj4GvyDKRXy", "uri": "/contracts/fj4GvyDKRXy#conversion-limitation", "label": "Secured Convertible Minimum Borrowing Note (Inyx Inc)", "score": 18.0, "published": true}, {"hash": "hfDMBzinn7t", "uri": "/contracts/hfDMBzinn7t#conversion-limitation", "label": "Secured Convertible Note (Veridium Corp)", "score": 16.0, "published": true}], "snippet": "Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of this Note an amount that would be convertible into that number of Conversion Shares which would exceed the difference between the number of shares of Common Stock beneficially owned by such Holder or issuable upon exercise of warrants held by such Holder and 4.99% of the outstanding shares of Common Stock of the Borrower. For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and Regulation 13d-3 thereunder. The Conversion Shares limitation described in this Section 3.2 shall automatically become null and void without any notice to Borrower upon the occurrence and during the continuance beyond any applicable grace period of an Event of Default, or upon 75 days prior notice to the Borrower.", "hash": "d635fb4b611c558963b8ec637e68a630", "id": 7}, {"snippet_links": [{"key": "the-holder", "type": "clause", "offset": [0, 10]}, {"key": "to-the-company", "type": "definition", "offset": [40, 54]}, {"key": "beneficially-owning", "type": "definition", "offset": [87, 106]}, {"key": "shares-of-the-company", "type": "clause", "offset": [153, 174]}, {"key": "restricted-ownership-percentage", "type": "definition", "offset": [177, 208]}], "size": 92, "samples": [{"hash": "bvgnt0e860z", "uri": "/contracts/bvgnt0e860z#conversion-limitation", "label": "Convertible Note Agreement (CarbonMeta Technologies, Inc.)", "score": 33.774810791, "published": true}, {"hash": "9C492taztb4", "uri": "/contracts/9C492taztb4#conversion-limitation", "label": "Convertible Note (CarbonMeta Technologies, Inc.)", "score": 33.774810791, "published": true}, {"hash": "h61T9sXUaOm", "uri": "/contracts/h61T9sXUaOm#conversion-limitation", "label": "Convertible Note (ParcelPal Logistics Inc.)", "score": 32.7097892761, "published": true}], "snippet": "The Holder will not submit a conversion to the Company that would result in the Holder beneficially owning more than 9.99% of the then total outstanding shares of the Company (\u201cRestricted Ownership Percentage\u201d).", "hash": "9866b0b330ebbdc1c866e555ab61d037", "id": 1}, {"snippet_links": [{"key": "the-holder", "type": "clause", "offset": [59, 69]}, {"key": "to-convert", "type": "clause", "offset": [92, 102]}, {"key": "terms-of-this-note", "type": "clause", "offset": [119, 137]}, {"key": "number-of-conversion-shares", "type": "clause", "offset": [184, 211]}, {"key": "owned-by", "type": "definition", "offset": [304, 312]}, {"key": "exercise-of-warrants", "type": "clause", "offset": [342, 362]}, {"key": "stock-of-the-borrower", "type": "clause", "offset": [429, 450]}, {"key": "purposes-of-the", "type": "clause", "offset": [460, 475]}, {"key": "beneficial-ownership", "type": "clause", "offset": [508, 528]}, {"key": "in-accordance-with", "type": "definition", "offset": [549, 567]}, {"key": "the-exchange-act", "type": "definition", "offset": [585, 601]}, {"key": "the-conversion", "type": "clause", "offset": [655, 669]}, {"key": "share-limitation", "type": "clause", "offset": [670, 686]}, {"key": "section-32", "type": "definition", "offset": [705, 716]}, {"key": "notice-to-the-borrower", "type": "clause", "offset": [736, 758]}, {"key": "notice-requirement", "type": "clause", "offset": [774, 792]}, {"key": "upon-an-event-of-default", "type": "clause", "offset": [793, 817]}], "size": 79, "samples": [{"hash": "kSvtbkeppDM", "uri": "/contracts/kSvtbkeppDM#conversion-limitation", "label": "Security Agreement (Electric City Corp)", "score": 21.0, "published": true}, {"hash": "lohLBX6pTgm", "uri": "/contracts/lohLBX6pTgm#conversion-limitation", "label": "Note (Bio Key International Inc)", "score": 20.0, "published": true}, {"hash": "4ywAzaYoCyg", "uri": "/contracts/4ywAzaYoCyg#conversion-limitation", "label": "Note (Bio Key International Inc)", "score": 20.0, "published": true}], "snippet": "Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of this Note an amount that would be convertible into that number of Conversion Shares which would exceed the difference between the number of shares of Common Stock beneficially owned by such Holder or issuable upon exercise of warrants held by such Holder and 4.99% of the outstanding shares of Common Stock of the Borrower. For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and Regulation 13d-3 thereunder. The Holder may void the Conversion Share limitation described in this Section 3.2 upon 75 days prior notice to the Borrower or without any notice requirement upon an Event of Default.", "hash": "1787937097c4cfb11221af40d3c7b850", "id": 2}, {"snippet_links": [{"key": "to-convert", "type": "clause", "offset": [92, 102]}, {"key": "terms-of-this-note", "type": "clause", "offset": [119, 137]}, {"key": "number-of-conversion-shares", "type": "clause", "offset": [184, 211]}, {"key": "outstanding-shares-of-common-stock", "type": "definition", "offset": [271, 305]}, {"key": "by-the-holder", "type": "clause", "offset": [371, 384]}, {"key": "for-purposes-of-the", "type": "clause", "offset": [386, 405]}, {"key": "beneficial-ownership", "type": "clause", "offset": [438, 458]}, {"key": "in-accordance-with", "type": "definition", "offset": [479, 497]}, {"key": "the-exchange-act", "type": "definition", "offset": [515, 531]}, {"key": "the-conversion-shares", "type": "clause", "offset": [565, 586]}, {"key": "section-32", "type": "definition", "offset": [616, 627]}, {"key": "null-and-void", "type": "clause", "offset": [655, 668]}, {"key": "any-notice", "type": "clause", "offset": [677, 687]}, {"key": "upon-the-occurrence-and-during", "type": "clause", "offset": [703, 733]}, {"key": "continuance-of-an-event-of-default", "type": "clause", "offset": [738, 772]}, {"key": "notice-to-the-parent", "type": "clause", "offset": [796, 816]}, {"key": "provisions-of-this-section", "type": "clause", "offset": [881, 907]}], "size": 49, "samples": [{"hash": "kH6JnFMchXG", "uri": "/contracts/kH6JnFMchXG#conversion-limitation", "label": "Secured Convertible Minimum Borrowing Note (Accentia Biopharmaceuticals Inc)", "score": 18.0, "published": true}, {"hash": "hvqzXSDfDi1", "uri": "/contracts/hvqzXSDfDi1#conversion-limitation", "label": "Secured Convertible Minimum Borrowing Note (Accentia Biopharmaceuticals Inc)", "score": 18.0, "published": true}, {"hash": "hS9pZEx3MeV", "uri": "/contracts/hS9pZEx3MeV#conversion-limitation", "label": "Secured Convertible Minimum Borrowing Note (Accentia Biopharmaceuticals Inc)", "score": 18.0, "published": true}], "snippet": "Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of this Note an amount that would be convertible into that number of Conversion Shares which would exceed the difference between (i) 4.99% of the outstanding shares of Common Stock and (ii) the number of shares of Common Stock beneficially owned by the Holder. For purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and Regulation 13d-3 thereunder. The Conversion Shares limitation described in this Section 3.2 shall automatically become null and void without any notice to any Company upon the occurrence and during the continuance of an Event of Default, or upon 75 days prior notice to the Parent. Notwithstanding anything contained herein to the contrary, the provisions of this Section 3.2 are irrevocable and may not be waived by the Holder or any Company.", "hash": "e65687f5a161517a93fd9c61cf982f5c", "id": 3}, {"snippet_links": [{"key": "to-convert", "type": "clause", "offset": [92, 102]}, {"key": "terms-of-this-note", "type": "clause", "offset": [119, 137]}, {"key": "number-of-conversion-shares", "type": "clause", "offset": [184, 211]}, {"key": "owned-by", "type": "definition", "offset": [304, 312]}, {"key": "exercise-of-warrants", "type": "clause", "offset": [342, 362]}, {"key": "stock-of-the-borrower", "type": "clause", "offset": [429, 450]}, {"key": "purposes-of-the", "type": "clause", "offset": [460, 475]}, {"key": "beneficial-ownership", "type": "clause", "offset": [508, 528]}, {"key": "in-accordance-with", "type": "definition", "offset": [549, 567]}, {"key": "the-exchange-act", "type": "definition", "offset": [585, 601]}, {"key": "the-conversion", "type": "clause", "offset": [655, 669]}, {"key": "share-limitation", "type": "clause", "offset": [670, 686]}, {"key": "section-32", "type": "definition", "offset": [705, 716]}, {"key": "notice-to-the-borrower", "type": "clause", "offset": [736, 758]}, {"key": "notice-requirement", "type": "clause", "offset": [774, 792]}, {"key": "upon-an-event-of-default", "type": "clause", "offset": [793, 817]}, {"key": "stock-issuable", "type": "clause", "offset": [909, 923]}, {"key": "by-the-borrower", "type": "clause", "offset": [924, 939]}, {"key": "by-the-holder", "type": "clause", "offset": [955, 968]}, {"key": "agreement-or", "type": "definition", "offset": [1051, 1063]}, {"key": "related-agreement", "type": "clause", "offset": [1068, 1085]}, {"key": "to-appropriate", "type": "clause", "offset": [1175, 1189]}, {"key": "adjustment-for-stock-splits", "type": "clause", "offset": [1190, 1217]}, {"key": "stock-dividends", "type": "clause", "offset": [1219, 1234]}, {"key": "affecting-the-common-stock", "type": "clause", "offset": [1271, 1297]}, {"key": "maximum-common-stock-issuance", "type": "definition", "offset": [1305, 1334]}, {"key": "issuance-of-shares", "type": "clause", "offset": [1349, 1367]}, {"key": "approved-by", "type": "definition", "offset": [1440, 1451]}, {"key": "in-time", "type": "definition", "offset": [1497, 1504]}, {"key": "from-time-to-time", "type": "clause", "offset": [1509, 1526]}, {"key": "common-stock-issued", "type": "clause", "offset": [1551, 1570]}, {"key": "in-the-event-of-a", "type": "clause", "offset": [1765, 1782]}, {"key": "conversion-or-exercise", "type": "clause", "offset": [1783, 1805]}, {"key": "the-borrower-shall", "type": "clause", "offset": [1964, 1982]}, {"key": "shareholders-meeting", "type": "definition", "offset": [1999, 2019]}, {"key": "to-solicit", "type": "definition", "offset": [2020, 2030]}, {"key": "shareholder-approval", "type": "clause", "offset": [2031, 2051]}, {"key": "issuance-of-the-shares", "type": "clause", "offset": [2060, 2082]}], "size": 36, "samples": [{"hash": "lEgU7pw2CfU", "uri": "/contracts/lEgU7pw2CfU#conversion-limitation", "label": "Secured Convertible Term Note (Synergy Brands Inc)", "score": 16.0, "published": true}, {"hash": "87xEGeGb1P5", "uri": "/contracts/87xEGeGb1P5#conversion-limitation", "label": "Secured Convertible Term Note (Synergy Brands Inc)", "score": 16.0, "published": true}], "snippet": "Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of this Note an amount that would be convertible into that number of Conversion Shares which would exceed the difference between the number of shares of Common Stock beneficially owned by such Holder or issuable upon exercise of warrants held by such Holder and 4.99% of the outstanding shares of Common Stock of the Borrower. For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and Regulation 13d-3 thereunder. The Holder may void the Conversion Share limitation described in this Section 3.2 upon 75 days prior notice to the Borrower or without any notice requirement upon an Event of Default. Notwithstanding anything contained herein to the contrary, the number of shares of Common Stock issuable by the Borrower and acquirable by the Holder at a price below $2.48 per share pursuant to the terms of this Note, the Purchase Agreement or any Related Agreement, shall not exceed an aggregate of 436,012 shares of the Borrower's Common Stock (subject to appropriate adjustment for stock splits, stock dividends, or other similar recapitalizations affecting the Common Stock) (the \"Maximum Common Stock Issuance\"), unless the issuance of shares hereunder in excess of the Maximum Common Stock Issuance shall first be approved by the Borrower's shareholders. If at any point in time and from time to time the number of shares of Common Stock issued pursuant to the terms of this Note, the Purchase Agreement or any Related Agreement, together with the number of shares of Common Stock that would then be issuable by the Borrower to the Holder in the event of a conversion or exercise pursuant to the terms of this Note, the Purchase Agreement or any Related Agreement, would exceed the Maximum Common Stock Issuance but for this Section 3.2, the Borrower shall promptly call a shareholders meeting to solicit shareholder approval for the issuance of the shares of Common Stock hereunder in excess of the Maximum Common Stock Issuance.", "hash": "45f54f4cb456de05deebd3e4f60f9373", "id": 4}, {"snippet_links": [{"key": "the-company-shall", "type": "clause", "offset": [0, 17]}, {"key": "conversion-of-this-note", "type": "clause", "offset": [33, 56]}, {"key": "a-holder", "type": "definition", "offset": [62, 70]}, {"key": "right-to-convert", "type": "clause", "offset": [90, 106]}, {"key": "to-the-extent", "type": "clause", "offset": [133, 146]}, {"key": "after-giving", "type": "clause", "offset": [152, 164]}, {"key": "the-conversion", "type": "clause", "offset": [175, 189]}, {"key": "the-applicable", "type": "clause", "offset": [203, 217]}, {"key": "conversion-notice", "type": "clause", "offset": [218, 235]}, {"key": "beneficial-ownership-limitation", "type": "definition", "offset": [288, 319]}, {"key": "the-foregoing", "type": "definition", "offset": [356, 369]}, {"key": "by-the-holder", "type": "clause", "offset": [436, 449]}, {"key": "common-stock-issuable-upon-conversion", "type": "clause", "offset": [507, 544]}, {"key": "with-respect-to", "type": "clause", "offset": [558, 573]}, {"key": "such-determination", "type": "definition", "offset": [580, 598]}, {"key": "principal-amount", "type": "definition", "offset": [738, 754]}, {"key": "exercise-or-conversion", "type": "clause", "offset": [835, 857]}, {"key": "unconverted-portion", "type": "definition", "offset": [880, 899]}, {"key": "securities-of-the-company", "type": "definition", "offset": [913, 938]}, {"key": "conversion-or-exercise", "type": "clause", "offset": [966, 988]}, {"key": "without-limitation", "type": "clause", "offset": [1046, 1064]}, {"key": "other-notes", "type": "definition", "offset": [1070, 1081]}, {"key": "for-purposes-of-this-section", "type": "clause", "offset": [1189, 1217]}, {"key": "in-accordance-with", "type": "definition", "offset": [1265, 1283]}, {"key": "the-exchange-act", "type": "definition", "offset": [1301, 1317]}, {"key": "rules-and-regulations", "type": "clause", "offset": [1326, 1347]}, {"key": "contained-in", "type": "definition", "offset": [1406, 1418]}, {"key": "the-determination-of", "type": "definition", "offset": [1446, 1466]}, {"key": "in-relation-to", "type": "clause", "offset": [1501, 1515]}, {"key": "securities-owned", "type": "clause", "offset": [1522, 1538]}, {"key": "sole-discretion", "type": "definition", "offset": [1657, 1672]}, {"key": "submission-of", "type": "clause", "offset": [1696, 1709]}, {"key": "each-case", "type": "definition", "offset": [1959, 1968]}, {"key": "subject-to-the", "type": "definition", "offset": [1969, 1983]}, {"key": "compliance-with", "type": "definition", "offset": [2027, 2042]}, {"key": "the-restrictions", "type": "clause", "offset": [2202, 2218]}, {"key": "and-the-company", "type": "clause", "offset": [2247, 2262]}, {"key": "to-verify", "type": "definition", "offset": [2288, 2297]}, {"key": "in-addition", "type": "clause", "offset": [2345, 2356]}, {"key": "group-status", "type": "clause", "offset": [2384, 2396]}, {"key": "number-of-outstanding-shares-of-common-stock", "type": "clause", "offset": [2600, 2644]}, {"key": "most-recent", "type": "definition", "offset": [2735, 2746]}, {"key": "report-filed", "type": "definition", "offset": [2814, 2826]}, {"key": "the-commission", "type": "clause", "offset": [2832, 2846]}, {"key": "the-case", "type": "definition", "offset": [2851, 2859]}, {"key": "public-announcement", "type": "clause", "offset": [2887, 2906]}, {"key": "company-or-the-company", "type": "definition", "offset": [2968, 2990]}, {"key": "transfer-agent", "type": "definition", "offset": [2993, 3007]}, {"key": "shares-of-common-stock-outstanding", "type": "definition", "offset": [3036, 3070]}, {"key": "oral-request", "type": "definition", "offset": [3092, 3104]}, {"key": "trading-days", "type": "definition", "offset": [3147, 3159]}, {"key": "in-writing", "type": "definition", "offset": [3179, 3189]}, {"key": "stock-shall", "type": "definition", "offset": [3315, 3326]}, {"key": "exercise-of-securities", "type": "clause", "offset": [3382, 3404]}, {"key": "the-common-stock", "type": "clause", "offset": [3645, 3661]}, {"key": "issuance-of-shares-of-common-stock", "type": "clause", "offset": [3713, 3747]}, {"key": "notice-to-the-company", "type": "definition", "offset": [3852, 3873]}, {"key": "increase-or-decrease", "type": "clause", "offset": [3879, 3899]}, {"key": "provisions-of-this-section", "type": "clause", "offset": [3936, 3962]}, {"key": "provided-that", "type": "definition", "offset": [3969, 3982]}, {"key": "in-no-event", "type": "clause", "offset": [4019, 4030]}, {"key": "to-apply", "type": "clause", "offset": [4310, 4318]}, {"key": "conformity-with", "type": "clause", "offset": [4575, 4590]}, {"key": "terms-of", "type": "clause", "offset": [4595, 4603]}, {"key": "make-changes", "type": "clause", "offset": [4784, 4796]}, {"key": "give-effect-to", "type": "definition", "offset": [4847, 4861]}, {"key": "successor-holder", "type": "clause", "offset": [4940, 4956]}, {"key": "restricted-ownership-percentage", "type": "definition", "offset": [4973, 5004]}], "size": 34, "samples": [{"hash": "fAX1CRmmYtw", "uri": "/contracts/fAX1CRmmYtw#conversion-limitation", "label": "Convertible Note Agreement (Helix TCS, Inc.)", "score": 30.8672142029, "published": true}, {"hash": "cNbbSQCUysI", "uri": "/contracts/cNbbSQCUysI#conversion-limitation", "label": "Convertible Note Agreement (Helix TCS, Inc.)", "score": 30.8672142029, "published": true}, {"hash": "8qd7czOgOAc", "uri": "/contracts/8qd7czOgOAc#conversion-limitation", "label": "Convertible Note Agreement (Helix TCS, Inc.)", "score": 30.8672142029, "published": true}], "snippet": "The Company shall not effect any conversion of this Note, and a Holder shall not have the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Conversion Notice, the Holder would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Notes) beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 1(f), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 1(f) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Conversion Notice shall be deemed to be the Holder\u2019s determination of whether this Note may be converted (in relation to other securities owned by the Holder together with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Conversion Notice that such Conversion Notice has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 1(f), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company\u2019s most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii) a more recent written notice by the Company or the Company\u2019s transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The \u201cBeneficial Ownership Limitation\u201d shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon not less than 61 days\u2019 prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 1(f), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 1(f) shall continue to apply. Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1(f) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note. (\u201cRestricted Ownership Percentage\u201d).", "hash": "a0e9d9ada53c96b8106771053bf18a51", "id": 5}, {"snippet_links": [{"key": "in-no-event-shall", "type": "clause", "offset": [49, 66]}, {"key": "to-convert", "type": "clause", "offset": [90, 100]}, {"key": "this-note", "type": "clause", "offset": [116, 125]}, {"key": "exercise-of", "type": "clause", "offset": [170, 181]}, {"key": "sum-of", "type": "clause", "offset": [192, 198]}, {"key": "by-the-holder", "type": "clause", "offset": [259, 272]}, {"key": "deemed-beneficially-owned", "type": "definition", "offset": [340, 365]}, {"key": "ownership-of-the", "type": "clause", "offset": [378, 394]}, {"key": "unconverted-portion", "type": "definition", "offset": [395, 414]}, {"key": "security-of-the", "type": "clause", "offset": [483, 498]}, {"key": "subject-to", "type": "definition", "offset": [506, 516]}, {"key": "limitation-on-conversion", "type": "clause", "offset": [519, 543]}, {"key": "stock-issuable", "type": "clause", "offset": [630, 644]}, {"key": "conversion-of", "type": "clause", "offset": [654, 667]}, {"key": "with-respect-to", "type": "clause", "offset": [693, 708]}, {"key": "the-determination-of", "type": "definition", "offset": [715, 735]}, {"key": "beneficial-ownership", "type": "clause", "offset": [780, 800]}, {"key": "outstanding-shares-of-common-stock", "type": "definition", "offset": [879, 913]}, {"key": "at-the-time", "type": "definition", "offset": [931, 942]}, {"key": "the-term", "type": "clause", "offset": [1091, 1099]}, {"key": "person-or-entity", "type": "definition", "offset": [1122, 1138]}, {"key": "directly-or-indirectly", "type": "clause", "offset": [1145, 1167]}, {"key": "under-common-control", "type": "definition", "offset": [1239, 1259]}, {"key": "a-person", "type": "clause", "offset": [1265, 1273]}, {"key": "rule-144", "type": "definition", "offset": [1331, 1339]}, {"key": "the-securities-act", "type": "clause", "offset": [1346, 1364]}, {"key": "for-purposes-of-the", "type": "clause", "offset": [1366, 1385]}, {"key": "in-accordance-with", "type": "definition", "offset": [1469, 1487]}, {"key": "securities-exchange-act-of-1934", "type": "clause", "offset": [1509, 1540]}, {"key": "as-amended", "type": "definition", "offset": [1542, 1552]}, {"key": "and-regulations", "type": "clause", "offset": [1554, 1569]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [1588, 1616]}, {"key": "in-clause", "type": "clause", "offset": [1617, 1626]}, {"key": "provision-of", "type": "clause", "offset": [1718, 1730]}, {"key": "notice-to-the-company", "type": "definition", "offset": [1773, 1794]}, {"key": "null-and-void", "type": "clause", "offset": [1830, 1843]}, {"key": "upon-the-occurrence-and-during", "type": "clause", "offset": [1880, 1910]}, {"key": "continuance-of-an-event-of-default", "type": "clause", "offset": [1915, 1949]}, {"key": "receipt-by-the", "type": "clause", "offset": [1964, 1978]}, {"key": "notice-of-redemption", "type": "clause", "offset": [1991, 2011]}], "size": 32, "samples": [{"hash": "hPWizJaYchc", "uri": "/contracts/hPWizJaYchc#conversion-limitation", "label": "Secured Convertible Note (Dynamic Health Products Inc)", "score": 18.0, "published": true}, {"hash": "998jcA4yNLR", "uri": "/contracts/998jcA4yNLR#conversion-limitation", "label": "Secured Convertible Term Note (Dynamic Health Products Inc)", "score": 18.0, "published": true}], "snippet": "Notwithstanding anything herein to the contrary, in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon exercise of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its Affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of the Holder subject to a limitation on conversion analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its Affiliates of any amount greater than 9.99% of the then outstanding shares of Common Stock (whether or not, at the time of such conversion, the Holder and its Affiliates beneficially own more than 9.99% of the then outstanding shares of Common Stock). As used herein, the term \u201cAffiliate\u201d means any person or entity that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a person or entity, as such terms are used in and construed under Rule 144 under the Securities Act. For purposes of the proviso to the second preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The limitations set forth herein (x) may be waived by the Holder upon provision of no less than seventy-five (75) days prior notice to the Company and (y) shall automatically become null and void (i) following notice to the Company upon the occurrence and during the continuance of an Event of Default, or (ii) upon receipt by the Holder of a Notice of Redemption.", "hash": "0eec56ab8244255fd61af3316416239e", "id": 6}, {"snippet_links": [{"key": "to-convert", "type": "clause", "offset": [33, 43]}, {"key": "conversion-date", "type": "clause", "offset": [49, 64]}, {"key": "in-connection-with", "type": "clause", "offset": [89, 107]}, {"key": "number-of-shares-of-common-stock", "type": "clause", "offset": [113, 145]}, {"key": "sum-of", "type": "clause", "offset": [178, 184]}, {"key": "owned-by", "type": "definition", "offset": [239, 247]}, {"key": "stock-issuable", "type": "clause", "offset": [316, 330]}, {"key": "unconverted-portion", "type": "definition", "offset": [354, 373]}, {"key": "conversion-of-the-note", "type": "clause", "offset": [452, 474]}, {"key": "with-respect-to", "type": "clause", "offset": [475, 490]}, {"key": "the-determination-of", "type": "definition", "offset": [497, 517]}, {"key": "beneficial-ownership", "type": "clause", "offset": [591, 611]}, {"key": "stock-of-the-borrower", "type": "clause", "offset": [700, 721]}, {"key": "purposes-of-the", "type": "clause", "offset": [755, 770]}, {"key": "in-accordance-with", "type": "definition", "offset": [861, 879]}, {"key": "securities-exchange-act-of-1934", "type": "clause", "offset": [901, 932]}, {"key": "as-amended", "type": "definition", "offset": [934, 944]}, {"key": "the-foregoing", "type": "definition", "offset": [990, 1003]}, {"key": "conversion-by-the-holder", "type": "clause", "offset": [1090, 1114]}], "size": 21, "samples": [{"hash": "lz5Q8LQy6f9", "uri": "/contracts/lz5Q8LQy6f9#conversion-limitation", "label": "Subscription Agreement (NextMart Inc.)", "score": 21.0, "published": true}, {"hash": "CaU3WQgIu6", "uri": "/contracts/CaU3WQgIu6#conversion-limitation", "label": "Subscription Agreement (BioElectronics Corp)", "score": 21.0, "published": true}, {"hash": "jo0JkNtk7Fr", "uri": "/contracts/jo0JkNtk7Fr#conversion-limitation", "label": "Subordinated Convertible Note (Accident Prevention Plus Inc)", "score": 19.0, "published": true}], "snippet": "The Holder shall not be entitled to convert on a Conversion Date that amount of the Note in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on a Conversion Date, (ii) any Common Stock issuable in connection with the unconverted portion of the Note, and (iii) the number of shares of Common Stock issuable upon the conversion of the Note with respect to which the determination of this provision is being made on a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock of the Borrower on such Conversion Date. For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the foregoing, the Holder shall not be limited to aggregate conversions of only 4.99% and aggregate conversion by the Holder may exceed 4.99", "hash": "77741c96e376d1595b3b7db7ce905bd7", "id": 8}, {"snippet_links": [{"key": "to-convert", "type": "clause", "offset": [92, 102]}, {"key": "terms-of-this-note", "type": "clause", "offset": [119, 137]}, {"key": "amount-of-common-stock", "type": "clause", "offset": [197, 219]}, {"key": "number-of-common", "type": "clause", "offset": [256, 272]}, {"key": "owned-by", "type": "definition", "offset": [371, 379]}, {"key": "outstanding-shares-of-common-stock", "type": "definition", "offset": [409, 443]}, {"key": "purposes-of-the", "type": "clause", "offset": [453, 468]}, {"key": "beneficial-ownership", "type": "clause", "offset": [501, 521]}, {"key": "in-accordance-with", "type": "definition", "offset": [542, 560]}, {"key": "the-exchange-act", "type": "definition", "offset": [578, 594]}, {"key": "the-foregoing", "type": "definition", "offset": [628, 641]}, {"key": "conversion-date", "type": "clause", "offset": [684, 699]}, {"key": "over-time", "type": "clause", "offset": [723, 732]}, {"key": "share-limitation", "type": "clause", "offset": [800, 816]}, {"key": "section-32", "type": "definition", "offset": [835, 846]}, {"key": "notice-to-the-borrower", "type": "clause", "offset": [888, 910]}, {"key": "equity-of-the-borrower", "type": "clause", "offset": [949, 971]}, {"key": "deemed-beneficially-owned", "type": "definition", "offset": [972, 997]}, {"key": "by-the-holder", "type": "clause", "offset": [998, 1011]}, {"key": "allocated-to", "type": "definition", "offset": [1085, 1097]}, {"key": "the-excess", "type": "clause", "offset": [1098, 1108]}], "size": 20, "samples": [{"hash": "bxcfSQ8uO0b", "uri": "/contracts/bxcfSQ8uO0b#conversion-limitation", "label": "Convertible Note (Alpha Solarco Inc)", "score": 19.0, "published": true}, {"hash": "831fl8VfcR2", "uri": "/contracts/831fl8VfcR2#conversion-limitation", "label": "Convertible Note (Innovative Food Holdings Inc)", "score": 19.0, "published": true}, {"hash": "ko7oJqmWADa", "uri": "/contracts/ko7oJqmWADa#conversion-limitation", "label": "Convertible Note (Canwest Petroleum Corp)", "score": 18.0, "published": true}], "snippet": "Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of this Note nor may this Note be converted in whole or in part into an amount of Common Stock that would be convertible into that number of Common Stock which would exceed the difference between the number of shares of Common Stock beneficially owned by such Holder and 4.99% of the outstanding shares of Common Stock. For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and Regulation 13d-3 thereunder. The foregoing limitation shall be calculated as of each Conversion Date. Aggregate conversions over time shall not be limited to 4.99%. The Holder may waive the Conversion Share limitation described in this Section 3.2, in whole or in part, upon 61 days prior notice to the Borrower. The Holder may allocate which of the equity of the Borrower deemed beneficially owned by the Holder shall be included in the 4.99% amount described above and which shall be allocated to the excess above 4.99%.", "hash": "a33103ab83f95a6d5cdf4768c66f9a8c", "id": 9}, {"snippet_links": [{"key": "the-holder", "type": "clause", "offset": [59, 69]}, {"key": "to-convert", "type": "clause", "offset": [92, 102]}, {"key": "terms-of-the-note", "type": "clause", "offset": [119, 136]}, {"key": "number-of-shares-of-common-stock", "type": "clause", "offset": [187, 219]}, {"key": "owned-by", "type": "definition", "offset": [301, 309]}, {"key": "exercise-of-warrants", "type": "clause", "offset": [352, 372]}, {"key": "stock-of-the-borrower", "type": "clause", "offset": [448, 469]}, {"key": "at-the-time", "type": "definition", "offset": [470, 481]}, {"key": "five-percent", "type": "clause", "offset": [517, 529]}, {"key": "trading-volume", "type": "clause", "offset": [560, 574]}, {"key": "the-common-stock", "type": "clause", "offset": [578, 594]}, {"key": "trading-period", "type": "definition", "offset": [623, 637]}, {"key": "notice-of-conversion", "type": "definition", "offset": [674, 694]}, {"key": "purposes-of-the", "type": "clause", "offset": [720, 735]}, {"key": "beneficial-ownership", "type": "clause", "offset": [768, 788]}, {"key": "in-accordance-with", "type": "definition", "offset": [809, 827]}, {"key": "the-exchange-act", "type": "definition", "offset": [845, 861]}, {"key": "the-conversion", "type": "clause", "offset": [895, 909]}, {"key": "section-32", "type": "definition", "offset": [939, 950]}, {"key": "null-and-void", "type": "clause", "offset": [978, 991]}, {"key": "notice-to-borrower", "type": "definition", "offset": [1004, 1022]}, {"key": "upon-the-occurrence-and-during", "type": "clause", "offset": [1023, 1053]}, {"key": "period-of", "type": "clause", "offset": [1098, 1107]}, {"key": "an-event-of-default", "type": "clause", "offset": [1108, 1127]}, {"key": "notice-to-the-borrower", "type": "clause", "offset": [1151, 1173]}], "size": 18, "samples": [{"hash": "cRtADgxIQxc", "uri": "/contracts/cRtADgxIQxc#conversion-limitation", "label": "Secured Revolving Note (Conversion Services International Inc)", "score": 18.0, "published": true}, {"hash": "3u62OJVB0ep", "uri": "/contracts/3u62OJVB0ep#conversion-limitation", "label": "Secured Convertible Note (Conversion Services International Inc)", "score": 18.0, "published": true}, {"hash": "l7VYFS3LmTX", "uri": "/contracts/l7VYFS3LmTX#conversion-limitation", "label": "Secured Convertible Note (Conversion Services International Inc)", "score": 16.0, "published": true}], "snippet": "Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of the Note an amount that would (a) be convertible into that number of shares of Common Stock which, when added to the number of shares of Common Stock otherwise beneficially owned by such Holder including those issuable upon exercise of warrants held by such Holder would exceed 4.99% of the outstanding shares of Common Stock of the Borrower at the time of conversion or (b) exceed twenty five percent (25%) of the aggregate dollar trading volume of the Common Stock for the twenty two (22) day trading period immediately preceding delivery of a Notice of Conversion to the Borrower. For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and Regulation 13d-3 thereunder. The conversion limitation described in this Section 3.2 shall automatically become null and void without any notice to Borrower upon the occurrence and during the continuance beyond any applicable grace period of an Event of Default, or upon 75 days prior notice to the Borrower, except that at no time shall the beneficial ownership exceed 19.99", "hash": "8184900748480b7841cf11b96f291757", "id": 10}], "next_curs": "Cl4SWGoVc35sYXdpbnNpZGVyY29udHJhY3RzcjoLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih5jb252ZXJzaW9uLWxpbWl0YXRpb24jMDAwMDAwMGEMogECZW4YACAA", "clause": {"children": [["payment-of-notes", "Payment of Notes"], ["stay-extension-and-usury-laws", "Stay, Extension and Usury Laws"], ["insurance", "Insurance"], ["further-assurances", "Further Assurances"], ["taxes", "Taxes"]], "size": 649, "parents": [["holders-conversion-rights", "Holders Conversion Rights"], ["conversion-rights", "Conversion Rights"], ["conversion", "Conversion"], ["conversion-rights-and-fixed-conversion-price", "Conversion Rights and Fixed Conversion Price"], ["general-provisions", "General Provisions"]], "title": "Conversion Limitation", "id": "conversion-limitation", "related": [["conversion-limitations", "Conversion Limitations", "<strong>Conversion Limitations</strong>"], ["\u2587\u2587\u2587\u2587\u2587\u2587s-conversion-limitations", "\u2587\u2587\u2587\u2587\u2587\u2587\u2019s Conversion Limitations", "\u2587\u2587\u2587\u2587\u2587\u2587\u2019s <strong>Conversion Limitations</strong>"], ["h\u2587\u2587\u2587\u2587\u2587s-conversion-limitations", "H\u2587\u2587\u2587\u2587\u2587\u2019s Conversion Limitations", "H\u2587\u2587\u2587\u2587\u2587\u2019s <strong>Conversion Limitations</strong>"], ["automatic-conversion", "Automatic Conversion", "Automatic Conversion"], ["adjustment-of-conversion-rate", "Adjustment of Conversion Rate", "Adjustment of Conversion Rate"]], "related_snippets": [], "updated": "2026-03-20T05:48:33+00:00", "also_ask": ["What are the most negotiable elements in a Conversion Limitation clause?", "Which drafting terms are essential to prevent circumvention or abuse?", "What are the primary legal risks or loopholes that could undermine enforceability?", "How do Conversion Limitation clauses differ across jurisdictions or deal types?", "What standards do courts use to determine if a Conversion Limitation is valid and enforceable?"], "drafting_tip": "Specify the maximum number of conversions allowed to prevent over-dilution; define triggering events to clarify when limitations apply; use precise terms to ensure enforceability.", "explanation": "A Conversion Limitation clause restricts the circumstances or amount by which a security, such as a convertible note or preferred stock, can be converted into common equity. Typically, this clause sets a maximum percentage of ownership that can be acquired through conversion or imposes timing restrictions on when conversions can occur. By doing so, it prevents any single investor from gaining excessive control or diluting existing shareholders beyond agreed limits, thereby maintaining balance in ownership and protecting the interests of all parties involved."}, "json": true, "cursor": ""}}