Conversion to Corporation. Prior to consummating any Business Combination or Next Equity Financing, or in the event that any Investor elects to exercise its rights to convert its SAFE into Conversion Securities on the Maturity Date, the Company shall be converted into and reconstituted as a corporation (the “Corporation”) and the Corporation shall elect to be treated as a C-corporation for tax purposes. Each member of the Company shall be entitled to receive a capital share ownership interest in the Corporation equivalent to the percentage of his, her or its equity interest in the Company as of the date of such conversion, as calculated on a fully diluted and as converted basis.
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