Common use of Conversion Privilege; Restrictive Legends Clause in Contracts

Conversion Privilege; Restrictive Legends. (a) A Holder of a Convertible Note may convert the principal of such Convertible Note into Common Stock at any time during the period stated in the form of Convertible Note attached as Exhibit B. The number of shares issuable upon conversion of a Convertible Note is determined as follows: divide each $1,000 of the principal amount to be converted by the Conversion Price in effect on the conversion date and round the result to the nearest 1/100th of a share. The Conversion Price is subject to adjustment in accordance with Section 8.06. (b) A Holder may convert a portion of the principal of such Convertible Note if the portion is at least $1,000 principal amount or an integral multiple of $1,000 principal amount. Provisions of this Agreement that apply to conversion of all of a Convertible Note also apply to conversion of a portion of it. (c) Notwithstanding any other provision of this Agreement, the Company may convert a Holder’s Convertible Note pursuant to Section 8(c) of the Convertible Note without any further action on the part of the Holder.