Conversion Repayment Option Sample Clauses
The Conversion Repayment Option clause allows a borrower to convert an outstanding loan or debt into another form of repayment, typically equity or another financial instrument, instead of repaying in cash. In practice, this means that if certain conditions are met, the borrower can choose to satisfy their repayment obligation by issuing shares or another agreed-upon asset to the lender. This clause is commonly used in convertible loan agreements to provide flexibility for both parties and to facilitate investment structures where cash repayment may not be preferable or feasible, thereby offering an alternative means of settling debt and potentially aligning the interests of the lender and borrower.
Conversion Repayment Option. (a) Payment of Monthly Amount in Cash or Common Stock. .. Each month by the fifth (5th) business day prior to each Amortization Date (the "NOTICE DATE"), the Holder shall deliver to Borrower a written notice in the form of Exhibit B attached hereto converting the Monthly Amount payable on the next Repayment Date in either cash or Common Stock, or a combination of both (each, a "REPAYMENT NOTICE"). If a Repayment Notice is not delivered by the Holder on or before the applicable Notice Date for such Repayment Date, then the Borrower shall pay the Monthly Amount due on such Repayment Date in cash. Any portion of the Monthly Amount paid in cash on a Repayment Date, shall be paid to the Holder an amount equal to 102% of the principal portion of the Monthly Amount due and owing to Holder on the Repayment Date. If the Holder converts all or a portion of the Monthly Amount in shares of Common Stock, the number of such shares to be issued by the Borrower to the Holder on such Repayment Date shall be the number determined by dividing (x) the portion of the Monthly Amount to be paid in shares of Common Stock, by (y) the then applicable Fixed Conversion Price. For purposes hereof, the initial "FIXED CONVERSION PRICE" means $4.26 (which has been determined on the date of this Note as an amount equal to 105% of the average closing price for the ten (10) trading days immediately prior to the date of this Note).
Conversion Repayment Option