Conversion or Repayment Sample Clauses
The "Conversion or Repayment" clause defines the conditions under which a debt or investment instrument may either be converted into another form, such as equity, or must be repaid in cash. Typically, this clause outlines specific events or milestones—like a future financing round or maturity date—that trigger the conversion or repayment, and it details the terms, such as conversion rates or repayment schedules. Its core function is to provide clarity and predictability for both parties regarding how and when obligations under the agreement will be settled, thereby reducing uncertainty and potential disputes.
Conversion or Repayment. The Company and Lender agree that at any time so long as the Convertible Note is outstanding, subject to the Prepayment provision of Section 6 below, Lender has the right to convert the Convertible Note (the “Conversion Right”) into up to $1,000,000 worth of common stock of the Company at a per share price of $1.00 (the “Strike Price”). Lender may exercise the Conversion Right by informing the Company either in writing or electronically that it intends to do so.
Conversion or Repayment