Conversion of Credit Balance to Common Stock of Borrower Clause Samples

Conversion of Credit Balance to Common Stock of Borrower. At any time during the term of this Agreement, Lender may convert the then outstanding Credit Balance, together with all accrued and unpaid interest, or any portion thereof, into shares of Borrower’s common stock in accordance with the terms of the applicable Credit Note(s). The Conversion Price shall be an amount equal to 75% of the Market Price of Borrower’s common stock on the Trading Day immediately preceding the Conversion Date, as such terms are defined in the Credit Notes, but in no event shall the Conversion Price be greater than $1.00 per share or less than $.25 per share, subject to the adjustments, price protection and anti-dilution provisions of the Credit Note. As more fully set forth in the Credit Notes, in no event shall Lender be permitted to convert all or any portion of the Credit Balance or accrued interest thereon into shares of common stock if, immediately following such conversion, Lender or any member of Lender would be deemed to be the beneficial owner of more than 4.9% of the total issued and outstanding shares of Borrower within the meaning of Section 13d-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), unless otherwise consented to by such Lender or member of Lender.