{"component": "clause", "props": {"groups": [{"size": 3, "snippet_links": [{"key": "the-right", "type": "clause", "offset": [21, 30]}, {"key": "the-obligation", "type": "clause", "offset": [56, 70]}, {"key": "to-convert", "type": "clause", "offset": [91, 101]}, {"key": "outstanding-principal-amount", "type": "definition", "offset": [139, 167]}, {"key": "term-a-loan", "type": "definition", "offset": [175, 186]}, {"key": "stock-of-borrower", "type": "clause", "offset": [209, 226]}, {"key": "price-per-share", "type": "clause", "offset": [232, 247]}, {"key": "to-appropriate", "type": "clause", "offset": [302, 316]}, {"key": "adjustment-for", "type": "clause", "offset": [317, 331]}, {"key": "stock-split", "type": "definition", "offset": [336, 347]}, {"key": "stock-dividend", "type": "clause", "offset": [349, 363]}, {"key": "recapitalization-or-reclassification", "type": "clause", "offset": [387, 423]}, {"key": "borrower-equity", "type": "definition", "offset": [499, 514]}, {"key": "to-exercise", "type": "clause", "offset": [517, 528]}, {"key": "rights-under-this-section", "type": "clause", "offset": [535, 560]}, {"key": "with-a-copy-to", "type": "definition", "offset": [599, 613]}, {"key": "agent-and-the-lenders", "type": "clause", "offset": [625, 646]}, {"key": "in-writing", "type": "definition", "offset": [648, 658]}, {"key": "the-term-loans", "type": "clause", "offset": [703, 717]}, {"key": "borrower-shall", "type": "clause", "offset": [764, 778]}, {"key": "days-after", "type": "definition", "offset": [803, 813]}, {"key": "receipt-of", "type": "clause", "offset": [818, 828]}, {"key": "number-of-shares-of", "type": "clause", "offset": [862, 881]}, {"key": "in-accordance-with", "type": "definition", "offset": [946, 964]}, {"key": "provisions-of-this-section", "type": "clause", "offset": [969, 995]}, {"key": "amount-of-term-loans", "type": "clause", "offset": [1015, 1035]}, {"key": "for-the-purposes-of-this-agreement", "type": "clause", "offset": [1086, 1120]}, {"key": "no-prepayment-fee", "type": "clause", "offset": [1141, 1158]}, {"key": "final-fee", "type": "definition", "offset": [1162, 1171]}, {"key": "with-respect-to", "type": "clause", "offset": [1185, 1200]}, {"key": "in-connection-with", "type": "clause", "offset": [1245, 1263]}, {"key": "the-issuance", "type": "clause", "offset": [1264, 1276]}, {"key": "equity-securities", "type": "definition", "offset": [1291, 1308]}, {"key": "pursuant-to", "type": "definition", "offset": [1309, 1320]}, {"key": "by-borrower", "type": "clause", "offset": [1390, 1401]}, {"key": "provisions-for", "type": "clause", "offset": [1427, 1441]}], "snippet": "Innovatus shall have the right at its election, but not the obligation, until May 9, 2026, to convert up to twenty percent (20.00%) of the outstanding principal amount of the Term A Loan into shares of Common Stock of Borrower at a price per share of Ten Dollars ($10.00), which price shall be subject to appropriate adjustment for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after August 9, 2022. Such shares shall be referred to herein as \u201cBorrower Equity\u201d. To exercise their rights under this Section 2.7, Innovatus shall notify Borrower (with a copy to Collateral Agent and the Lenders) in writing of the then outstanding principal amount of the Term Loans that is to be converted into Borrower Equity. Borrower shall no later than seven (7) days after the receipt of such notice issue the applicable number of shares of its Common Stock to Innovatus. Upon issuance of Borrower Equity in accordance with the provisions of this Section 2.7, the principal amount of Term Loans so converted shall be deemed to have been prepaid for the purposes of this Agreement, provided, however, no Prepayment Fee or Final Fee shall be due with respect to such deemed prepayment Innovatus shall also in connection with the issuance of Borrower\u2019s Equity securities pursuant to this Section 2.7, enter into such agreements as reasonably requested by Borrower with customary terms and provisions for such transactions.", "samples": [{"hash": "eqgFapubTcV", "uri": "/contracts/eqgFapubTcV#conversion-to-equity", "label": "Loan and Security Agreement (Celcuity Inc.)", "score": 36.6906228611, "published": true}], "hash": "f6683925f071c57fbb4d1e963b273b45", "id": 2}, {"size": 2, "snippet_links": [{"key": "repayment-of", "type": "clause", "offset": [26, 38]}, {"key": "the-option", "type": "clause", "offset": [95, 105]}, {"key": "at-any-time", "type": "clause", "offset": [121, 132]}, {"key": "execution-of-this-agreement", "type": "clause", "offset": [143, 170]}, {"key": "loan-outstanding", "type": "definition", "offset": [207, 223]}, {"key": "from-time-to-time", "type": "clause", "offset": [224, 241]}, {"key": "accrued-interest", "type": "definition", "offset": [261, 277]}, {"key": "capital-stock-of-the-company", "type": "clause", "offset": [365, 393]}, {"key": "common-shares", "type": "definition", "offset": [441, 454]}, {"key": "preferred-shares", "type": "clause", "offset": [458, 474]}, {"key": "share-capital-of-the-corporation", "type": "clause", "offset": [482, 514]}, {"key": "to-convert", "type": "clause", "offset": [542, 552]}, {"key": "the-debt", "type": "clause", "offset": [553, 561]}, {"key": "notice-thereof", "type": "clause", "offset": [597, 611]}, {"key": "to-the-borrower", "type": "clause", "offset": [612, 627]}, {"key": "upon-notice", "type": "definition", "offset": [708, 719]}, {"key": "pursuant-to", "type": "definition", "offset": [732, 743]}, {"key": "the-company-shall", "type": "clause", "offset": [758, 775]}, {"key": "provide-the-lender-with", "type": "clause", "offset": [776, 799]}, {"key": "to-be-executed", "type": "clause", "offset": [825, 839]}, {"key": "shares-in-the-company", "type": "clause", "offset": [868, 889]}, {"key": "according-to", "type": "definition", "offset": [908, 920]}, {"key": "rights-and-preferences", "type": "clause", "offset": [932, 954]}, {"key": "conversion-rate", "type": "clause", "offset": [961, 976]}, {"key": "at-the-time", "type": "definition", "offset": [1004, 1015]}, {"key": "the-conversion", "type": "clause", "offset": [1031, 1045]}, {"key": "to-receive", "type": "definition", "offset": [1085, 1095]}, {"key": "shares-of-the-company", "type": "definition", "offset": [1209, 1230]}, {"key": "as-soon-as-practicable", "type": "definition", "offset": [1277, 1299]}, {"key": "deliver-to", "type": "definition", "offset": [1300, 1310]}, {"key": "share-certificates", "type": "clause", "offset": [1322, 1340]}, {"key": "in-accordance-with", "type": "definition", "offset": [1386, 1404]}], "snippet": "In the alternative to the repayment of those monies described in paragraph above hereof and at the option of the Lender, at any time after the execution of this Agreement, the full or partial payment of the Loan outstanding from time to time, together with any accrued interest thereon (hereinafter collectively called the \"Debt\") can be converted to equity in the capital stock of the Company by the allotment and issuance to the Lender of common shares or preferred shares in the share capital of the corporation. If the Lender shall elect to convert the Debt into shares, the Lender shall give notice thereof to the Borrower at its office located at \u2587\u2587\u2587 \u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587\u2587, \u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587, \u2587\u2587\u2587 \u2587\u2587\u2587\u2587, \u2587\u2587\u2587 \u2587\u2587\u2587\u2587,\u2587\u2587\u2587\u2587\u2587. Upon notice being given pursuant to this section, the Company shall provide the Lender with a Subscription Agreement to be executed for the common or preferred shares in the Company for consideration according to Conversion Rights and Preferences (the \u201cConversion Rate\u201d) which will be negotiated at the time of Conversion. The Conversion Rate shall at no time cause the Lender to receive equity in the capital stock of the Company that equals more than Ten Percent (10%) of the issued and outstanding shares of the Company On or after the Conversion, the Company shall as soon as practicable deliver to the Lender share certificates in amounts equivalent to the Debt calculated in accordance with the Conversion Rate negotiated.", "samples": [{"hash": "j1vZhscoNxY", "uri": "/contracts/j1vZhscoNxY#conversion-to-equity", "label": "Loan Agreement (Trustcash Holdings, Inc.)", "score": 19.0, "published": true}, {"hash": "7zDQp7pDOcw", "uri": "/contracts/7zDQp7pDOcw#conversion-to-equity", "label": "Loan Agreement (Trustcash Holdings, Inc.)", "score": 19.0, "published": true}], "hash": "8964247559d2651cc7fcd860066f2d2e", "id": 3}, {"size": 2, "snippet_links": [{"key": "first-paragraph", "type": "definition", "offset": [4, 19]}, {"key": "the-loan-agreement", "type": "clause", "offset": [38, 56]}, {"key": "amended-and-restated", "type": "definition", "offset": [67, 87]}], "snippet": "The first paragraph of Section 2.7 of the Loan Agreement is hereby amended and restated as follows:", "samples": [{"hash": "cMneYQgFc6Z", "uri": "/contracts/cMneYQgFc6Z#conversion-to-equity", "label": "Loan and Security Agreement (Celcuity Inc.)", "score": 36.57289505, "published": true}, {"hash": "cCjdx5moL3Q", "uri": "/contracts/cCjdx5moL3Q#conversion-to-equity", "label": "Loan and Security Agreement (Celcuity Inc.)", "score": 34.3675575256, "published": true}], "hash": "1d53ef325d8f27511b38f765803bda7c", "id": 4}, {"size": 4, "snippet_links": [{"key": "after-december", "type": "clause", "offset": [4, 18]}, {"key": "at-any-time", "type": "clause", "offset": [29, 40]}, {"key": "outstanding-principal", "type": "definition", "offset": [109, 130]}, {"key": "accrued-interest", "type": "definition", "offset": [135, 151]}, {"key": "option-of-the-holder", "type": "clause", "offset": [237, 257]}, {"key": "notice-to-the-company", "type": "clause", "offset": [281, 302]}, {"key": "common-stock-of-the-company", "type": "definition", "offset": [319, 346]}, {"key": "conversion-price", "type": "definition", "offset": [352, 368]}, {"key": "equal-to", "type": "definition", "offset": [369, 377]}, {"key": "notwithstanding-anything-to-the-contrary-contained", "type": "clause", "offset": [399, 449]}, {"key": "each-purchaser", "type": "definition", "offset": [458, 472]}, {"key": "section-41", "type": "clause", "offset": [538, 549]}, {"key": "at-the-time", "type": "definition", "offset": [553, 564]}, {"key": "stock-issuable", "type": "clause", "offset": [599, 613]}, {"key": "pursuant-to-such", "type": "clause", "offset": [629, 645]}, {"key": "when-taken", "type": "clause", "offset": [692, 702]}, {"key": "all-shares", "type": "clause", "offset": [717, 727]}, {"key": "owned-by", "type": "definition", "offset": [780, 788]}, {"key": "total-number-of", "type": "definition", "offset": [822, 837]}, {"key": "issued-and-outstanding-shares", "type": "clause", "offset": [838, 867]}, {"key": "prior-to", "type": "clause", "offset": [911, 919]}, {"key": "each-case", "type": "definition", "offset": [1185, 1194]}, {"key": "stockholders-of-the-company", "type": "clause", "offset": [1206, 1233]}, {"key": "the-conversion", "type": "clause", "offset": [1248, 1262]}, {"key": "the-shares", "type": "clause", "offset": [1273, 1283]}, {"key": "contemplated-hereby", "type": "clause", "offset": [1340, 1359]}, {"key": "applicable-rules-and-regulations", "type": "definition", "offset": [1428, 1460]}, {"key": "stockholder-approval", "type": "clause", "offset": [1463, 1483]}, {"key": "the-foregoing", "type": "definition", "offset": [1487, 1500]}, {"key": "number-of-shares-of-common-stock", "type": "clause", "offset": [1542, 1574]}, {"key": "determine-the", "type": "clause", "offset": [1637, 1650]}, {"key": "amount-of-securities", "type": "clause", "offset": [1651, 1671]}, {"key": "other-consideration", "type": "definition", "offset": [1675, 1694]}, {"key": "in-the-event-of-a", "type": "clause", "offset": [1724, 1741]}, {"key": "other-business-combination", "type": "definition", "offset": [1758, 1784]}, {"key": "the-company-hereby", "type": "clause", "offset": [1812, 1830]}, {"key": "conversion-of-convertible-notes", "type": "clause", "offset": [1913, 1944]}, {"key": "notice-of", "type": "definition", "offset": [2004, 2013]}, {"key": "such-purchaser", "type": "definition", "offset": [2030, 2044]}, {"key": "the-company-shall", "type": "clause", "offset": [2046, 2063]}, {"key": "best-efforts", "type": "clause", "offset": [2072, 2084]}, {"key": "highbridge-note", "type": "definition", "offset": [2229, 2244]}, {"key": "respective-affiliates", "type": "definition", "offset": [2313, 2334]}, {"key": "right-to", "type": "clause", "offset": [2350, 2358]}, {"key": "to-the-extent", "type": "clause", "offset": [2411, 2424]}, {"key": "after-giving", "type": "clause", "offset": [2430, 2442]}, {"key": "person-or-entity", "type": "definition", "offset": [2525, 2541]}, {"key": "acting-as-a-group", "type": "definition", "offset": [2542, 2559]}, {"key": "the-other-hand", "type": "clause", "offset": [2713, 2727]}, {"key": "issuance-of-shares-of-common-stock", "type": "clause", "offset": [2866, 2900]}, {"key": "for-purposes-of-the", "type": "clause", "offset": [2936, 2955]}, {"key": "shares-of-common-stock-beneficially-owned", "type": "clause", "offset": [2990, 3031]}, {"key": "with-respect-to", "type": "clause", "offset": [3134, 3149]}, {"key": "such-determination", "type": "definition", "offset": [3156, 3174]}, {"key": "exercise-of-the", "type": "clause", "offset": [3278, 3293]}, {"key": "exercise-or-conversion", "type": "clause", "offset": [3453, 3475]}, {"key": "securities-of-the-company", "type": "clause", "offset": [3532, 3557]}, {"key": "without-limitation", "type": "clause", "offset": [3570, 3588]}, {"key": "other-convertible-notes", "type": "definition", "offset": [3594, 3617]}, {"key": "subject-to", "type": "definition", "offset": [3631, 3641]}, {"key": "conversion-or-exercise", "type": "clause", "offset": [3658, 3680]}, {"key": "for-purposes-of-this-section", "type": "clause", "offset": [3853, 3881]}, {"key": "beneficial-ownership", "type": "definition", "offset": [3890, 3910]}, {"key": "in-accordance-with", "type": "definition", "offset": [3931, 3949]}, {"key": "the-exchange-act", "type": "definition", "offset": [3967, 3983]}, {"key": "the-rules", "type": "clause", "offset": [3988, 3997]}, {"key": "number-of-outstanding-shares-of-common-stock", "type": "clause", "offset": [4092, 4136]}, {"key": "most-recent", "type": "definition", "offset": [4272, 4283]}, {"key": "form-10", "type": "clause", "offset": [4284, 4291]}, {"key": "public-announcement", "type": "clause", "offset": [4312, 4331]}, {"key": "notice-by-the-company", "type": "clause", "offset": [4364, 4385]}, {"key": "the-transfer-agent", "type": "clause", "offset": [4389, 4407]}, {"key": "shares-of-common-stock-outstanding", "type": "definition", "offset": [4436, 4470]}, {"key": "oral-request", "type": "definition", "offset": [4492, 4504]}, {"key": "trading-days", "type": "definition", "offset": [4557, 4569]}, {"key": "in-writing", "type": "definition", "offset": [4589, 4599]}, {"key": "stock-shall", "type": "definition", "offset": [4725, 4736]}, {"key": "exercise-of-securities", "type": "clause", "offset": [4792, 4814]}], "snippet": "(a) After December 31, 2007, at any time during which Convertible Notes remain outstanding, up to all of the outstanding principal and accrued interest under any particular Convertible Note then outstanding may be converted, at the sole option of the holder thereof and by written notice to the Company, into shares of Common Stock of the Company at a conversion price equal to $2.50 per share.\n(b) Notwithstanding anything to the contrary contained herein, each Purchaser shall be prohibited from effecting a conversion pursuant to this Section 4.1 if at the time of such conversion (i) the Common Stock issuable to a Purchaser pursuant to such conversion or as a result of such conversion, when taken together with all shares of Common Stock then held or otherwise beneficially owned by a Purchaser exceeds 19.9% of the total number of issued and outstanding shares of Common Stock of the Company immediately prior to such conversion, (ii) the Common Stock issuable to a Purchaser pursuant to such conversion or as a result of such conversion, exceeds 19.9% of the total number of issued and outstanding shares of Common Stock of the Company immediately prior to such conversion, in each case unless the stockholders of the Company have approved the conversion of all of the shares of Common Stock issuable hereunder and the transactions contemplated hereby pursuant to Nasdaq Marketplace Rule 4350(i)(1)(D)(ii) and any other applicable rules and regulations (\u201cStockholder Approval\u201d). The foregoing provision however shall not restrict the number of shares of Common Stock which a Purchaser may receive or beneficially own in order to determine the amount of securities or other consideration that a Purchaser may receive in the event of a merger, sale or other business combination involving the Company.\n(c) The Company hereby covenants and agrees that in the event a Purchaser is prohibited from effecting a conversion of Convertible Notes pursuant to this Section 4.1, then upon receipt of written notice of such event from such Purchaser, the Company shall use its best efforts to seek Stockholder Approval.\n(d) Notwithstanding anything to the contrary contained herein, the Company shall not effect any conversion of the Highbridge Note or the ISVP Note, and neither Highbridge nor ISVP, nor any of their respective affiliates shall have the right to effect any conversion pursuant to this Section 4.1, to the extent that after giving effect to such conversion, Highbridge (together with its affiliates and any other person or entity acting as a group together with Highbridge) on the one hand, or ISVP (together with its affiliates and any other person or entity acting as a group together with ISVP) on the other hand, would beneficially own in excess of 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon any such conversion. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by Highbridge or ISVP shall include the number of shares of Common Stock issuable upon the conversion with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of the Highbridge Note or the ISVP Note beneficially owned by Highbridge or ISVP or any of their respective affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other convertible notes or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by Highbridge or ISVP or any of their respective affiliates. Except as set forth in the preceding sentence, for purposes of this Section 4.1(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, Highbridge and ISVP may rely on the number of outstanding shares of Common Stock as reflected in the later dated of (x) the Company\u2019s most recent Form 10-K (y) a more recent public announcement by the Company or (z) any other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of Highbridge or ISVP, the Company shall within two Trading Days confirm orally and in writing to Highbridge the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including the Highbridge Note or the ISVP Note, since the date as of which such number of outstanding shares of Common Stock was reported.", "samples": [{"hash": "17ZvIs0xXLY", "uri": "/contracts/17ZvIs0xXLY#conversion-to-equity", "label": "Convertible Promissory Note Purchase Agreement (Alseres Pharmaceuticals Inc /De)", "score": 21.0, "published": true}], "hash": "2fbfee67d6789a7b6392d2091497e2ee", "id": 1}, {"size": 2, "snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [0, 11]}, {"key": "to-receive", "type": "definition", "offset": [34, 44]}, {"key": "stock-of-company", "type": "clause", "offset": [68, 84]}, {"key": "with-company", "type": "clause", "offset": [85, 97]}, {"key": "written-approval", "type": "definition", "offset": [100, 116]}, {"key": "a-warrant", "type": "definition", "offset": [154, 163]}, {"key": "by-company", "type": "clause", "offset": [190, 200]}, {"key": "agreement-or", "type": "definition", "offset": [244, 256]}, {"key": "a-separate", "type": "definition", "offset": [260, 270]}, {"key": "agreement-between", "type": "clause", "offset": [279, 296]}, {"key": "company-and-employee", "type": "clause", "offset": [297, 317]}], "snippet": "At any time, EMPLOYEE can request to receive Compensation in common stock of COMPANY with COMPANY's written approval. Compensation will be paid according a warrant package currently offered by COMPANY and must be stated by an amendment to this Agreement or by a separate written agreement between COMPANY and EMPLOYEE.", "samples": [{"hash": "iYPEllTG1SY", "uri": "/contracts/iYPEllTG1SY#conversion-to-equity", "label": "Employment Agreement (Implantable Vision, Inc.)", "score": 16.0, "published": true}, {"hash": "iFQ3C3DnEOM", "uri": "/contracts/iFQ3C3DnEOM#conversion-to-equity", "label": "Employment Agreement (Implantable Vision, Inc.)", "score": 16.0, "published": true}], "hash": "87b9809e4849d47c9e2a14f216310c6d", "id": 5}, {"size": 2, "snippet_links": [{"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [0, 40]}, {"key": "in-this-agreement", "type": "definition", "offset": [41, 58]}, {"key": "at-any-time", "type": "clause", "offset": [73, 84]}], "snippet": "Notwithstanding anything to the contrary in this Agreement, Creditor may at any time convert the Creditor Loan and any interest thereon into equity of Clarus.", "samples": [{"hash": "7a5N5uf96hD", "uri": "/contracts/7a5N5uf96hD#conversion-to-equity", "label": "Subordination Agreement (Clarus Corp)", "score": 21.421628952, "published": true}, {"hash": "53UbrxWKpfp", "uri": "/contracts/53UbrxWKpfp#conversion-to-equity", "label": "Subordination Agreement (Clarus Corp)", "score": 21.421628952, "published": true}], "hash": "18cd5324a165737f9e7e3bf04d67b5ff", "id": 6}, {"size": 2, "snippet_links": [{"key": "the-right", "type": "clause", "offset": [21, 30]}, {"key": "the-obligation", "type": "clause", "offset": [56, 70]}, {"key": "to-convert", "type": "clause", "offset": [91, 101]}, {"key": "outstanding-principal-amount", "type": "definition", "offset": [139, 167]}, {"key": "term-a-loan", "type": "definition", "offset": [175, 186]}, {"key": "stock-of-borrower", "type": "clause", "offset": [209, 226]}, {"key": "price-per-share", "type": "clause", "offset": [232, 247]}, {"key": "to-appropriate", "type": "clause", "offset": [302, 316]}, {"key": "adjustment-for", "type": "clause", "offset": [317, 331]}, {"key": "stock-split", "type": "definition", "offset": [336, 347]}, {"key": "stock-dividend", "type": "clause", "offset": [349, 363]}, {"key": "recapitalization-or-reclassification", "type": "clause", "offset": [387, 423]}, {"key": "borrower-equity", "type": "definition", "offset": [499, 514]}], "snippet": "Innovatus shall have the right at its election, but not the obligation, until May 9, 2026, to convert up to twenty percent (20.00%) of the outstanding principal amount of the Term A Loan into shares of Common Stock of Borrower at a price per share of Ten Dollars ($10.00), which price shall be subject to appropriate adjustment for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after August 9, 2022. Such shares shall be referred to herein as \u201cBorrower Equity\u201d.\u201d", "samples": [{"hash": "cMneYQgFc6Z", "uri": "/contracts/cMneYQgFc6Z#conversion-to-equity", "label": "Loan and Security Agreement (Celcuity Inc.)", "score": 36.57289505, "published": true}], "hash": "388def9c99644ddf8bf93fc0f4ac33f6", "id": 8}, {"size": 2, "snippet_links": [{"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [0, 40]}, {"key": "in-this-agreement", "type": "definition", "offset": [41, 58]}, {"key": "at-any-time", "type": "clause", "offset": [74, 85]}, {"key": "creditor-indebtedness", "type": "definition", "offset": [98, 119]}], "snippet": "Notwithstanding anything to the contrary in this Agreement, Creditors may at any time convert the Creditor Indebtedness and any interest thereon into equity of BDI.", "samples": [{"hash": "fB3jj39tp0O", "uri": "/contracts/fB3jj39tp0O#conversion-to-equity", "label": "Subordination Agreement (Black Diamond, Inc.)", "score": 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"disposition-of", "type": "clause", "offset": [7518, 7532]}, {"key": "applicable-prospectus", "type": "definition", "offset": [7649, 7670]}, {"key": "to-ensure", "type": "clause", "offset": [7771, 7780]}, {"key": "in-addition", "type": "clause", "offset": [7858, 7869]}, {"key": "acknowledge-and-agree", "type": "clause", "offset": [7887, 7908]}, {"key": "from-time-to-time", "type": "clause", "offset": [7991, 8008]}, {"key": "terms-of-this-agreement", "type": "clause", "offset": [8025, 8048]}, {"key": "transfer-of", "type": "clause", "offset": [8090, 8101]}, {"key": "at-any-time", "type": "clause", "offset": [8116, 8127]}, {"key": "possession-of-material", "type": "clause", "offset": [8181, 8203]}, {"key": "understand-and-agree-that", "type": "clause", "offset": [8263, 8288]}, {"key": "subject-to-transfer-restrictions", "type": "clause", "offset": [8313, 8345]}, {"key": "financial-risk", "type": "clause", "offset": [8512, 8526]}, {"key": "to-the-extent", "type": "clause", "offset": [8622, 8635]}, {"key": "laws-or-regulations", "type": "clause", "offset": [8674, 8693]}, {"key": "obligations-to-issue", "type": "clause", "offset": [8721, 8741]}, {"key": "comply-with-the", "type": "clause", "offset": [8808, 8823]}, {"key": "securities-laws-and-regulations", "type": "definition", "offset": [8835, 8866]}, {"key": "upon-notice", "type": "definition", "offset": [8958, 8969]}, {"key": "by-the-lenders", "type": "clause", "offset": [9069, 9083]}, {"key": "compliance-with-the", "type": "clause", "offset": [9149, 9168]}, {"key": "applicable-provisions", "type": "definition", "offset": [9169, 9190]}], "snippet": "Prior to the fourth anniversary of the Effective Date, Lenders shall have the right at their election, but not the obligation, to convert up to ten percent (10.00%) of the outstanding aggregate principal amount of the Term Loans into shares of common stock of Parent. Such right may only be exercised one time, regardless of the amount that the Lenders elect to convert. Such shares shall be issued at a price per share equal to $11.50 (which price shall be subject to appropriate adjustment for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof) (the \u201cConversion Price\u201d). Such shares shall be referred to herein as \u201cParent Equity.\u201d To exercise their rights under this Section 2.7, the applicable Lender(s) shall notify Parent in writing of the amount of the Term Loans that is to be converted into Parent Equity and deliver to the Parent a properly completed notice of conversion, the form of which is attached hereto as Exhibit E (each a \u201cNotice of Conversion\u201d). Parent shall no later than seven (7) days after the receipt of such Notice of Conversion issue Parent Equity to the applicable Lender(s). Upon issuance of Parent Equity in accordance with the provisions of this Section 2.7, the principal amount of Term Loans so converted shall be deemed to have been prepaid for the purposes of this Agreement, provided, however, no Prepayment Fee or Final Fee shall be due with respect to such deemed prepayment. Furthermore, contemporaneously with the issuance of Parent Equity, Parent shall deliver to the applicable Lender(s) stock certificates or book-entry positions evidencing Parent Equity. No fractional shares or scrip representing fractional shares shall be issued upon any conversion of outstanding Term Loans under this Section 2.7. As to any fraction of a share which the Lender(s) would otherwise be entitled to receive upon such conversion, the Parent shall at its election either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share. The parties acknowledge and understand that any Parent Equity will be issued in a private transaction within the meaning of Section 3(a)(9) or Section 4(a)(2) of the Securities Act of 1933, as amended (the \u201cSecurities Act\u201d), and that the Parent Equity will not be registered under the Securities Act or any other applicable securities law at the time of its issuance. The Lenders acknowledge and understand that the Parent Equity may not be resold, transferred, pledged or otherwise disposed of by any Lender absent an effective registration statement under the Securities Act with respect to the Parent Equity or pursuant to an applicable exemption from the registration requirements of the Securities Act, and that any certificates or book-entry positions representing the Parent Equity shall contain a legend in substantially the following form, unless otherwise determined by the Parent: THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM. Parent hereby undertakes to register the Parent Equity for resale within 90 calendar days of its issuance (the \u201cFiling Period\u201d) pursuant to an effective registration statement under the Securities Act (each a \u201cRegistration Statement\u201d) if, at the time of its issuance, the Parent Equity is not, and will not be within the Filing Period, eligible for resale pursuant to Rule 144 promulgated under the Securities Act (\u201cRule 144\u201d). Each Lender agrees to furnish the Company with information regarding such Lender that the Company reasonably believes is required to be disclosed in the Registration Statement; provided, that the Company will provide such Lender a reasonable opportunity to review such disclosure regarding such Lender that the Company proposes to include in the Registration Statement. The Company will use its reasonable best efforts to keep any Registration Statement continuously effective under the Securities Act until the date that all Parent Equity covered by such Registration Statement (i) have been sold or transferred thereunder, or (ii) may be sold or transferred pursuant to Rule 144. The registration rights provided to the Lenders under this Section 2.7 will terminate in their entirety upon the earliest to occur of: (i) the date on which no principal amounts of Term Loans are outstanding; (ii) at such time all Parent Equity has been sold or transferred or may be sold or transferred pursuant to Rule 144; or (iii) the termination of this Agreement. The Company will notify the Lenders holding Parent Equity registered on any Registration Statement (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied by an instruction to suspend the use of the prospectus included in such Registration Statement until the requisite changes have been made) as promptly as reasonably possible (i) when a prospectus or any prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed, (ii) of any request by the Securities and Exchange Commission or any other federal or state governmental authority for amendments or supplements to a Registration Statement or prospectus or for additional information, (iii) of the issuance by the Securities and Exchange Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Parent Equity or the initiation of any proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of Parent Equity for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in a Registration Statement or prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration Statement, prospectus or other documents so that, in the case of a Registration Statement or the prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (vi) of the occurrence or existence of any pending development with respect to the Company that the Company believes may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration Statement or prospectus; provided, however, that in no event shall any such notice contain any information which would constitute material, non-public information regarding the Company without the applicable Lenders\u2019 prior written consent. Each Lender agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in subclauses (iii) through (vi), such Lender will forthwith discontinue disposition of such Parent Equity under a Registration Statement until it is advised in writing by the Company that the use of the applicable prospectus (as it may have been supplemented or amended) may be resumed. The Company will use its best efforts to ensure that the use of the prospectus may be resumed as promptly as is practicable. In addition, the Lenders (i) acknowledge and agree that they be provided with material, non-public information regarding the Company from time to time pursuant to the terms of this Agreement and (ii) will not make any sale or other transfer of Parent Equity at any time in which they reasonably believe that they may be in possession of material, non-public information regarding the Company. The Lenders understand and agree that if the Parent Equity is subject to transfer restrictions, including pursuant to Rule 144 promulgated under the Securities Act, the Lenders may not be able to readily resell the Parent Equity and may be required to bear the financial risk of an investment in the Parent Equity for until the Parent Equity becomes eligible for resale. To the extent that the provisions of any securities laws or regulations conflict with the Parent\u2019s obligations to issue and deliver Parent Equity under this Section 2.7, the Parent will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations to issue and deliver Parent Equity upon notice of conversion delivered pursuant to this Section 2.7; provided, however, Parent will, if requested by the Lenders, issue and deliver the Parent Equity as soon as it is able to in compliance with the applicable provisions any securities laws or regulations.", "samples": [{"hash": "ckomuzFGWvr", "uri": "/contracts/ckomuzFGWvr#conversion-to-equity", "label": "Loan and Security Agreement (Apollo Endosurgery, Inc.)", "score": 33.1423683167, "published": true}], "hash": "6f38b303963b8bb360e04201f6032811", "id": 10}, {"size": 2, "snippet_links": [{"key": "in-the-event", "type": "clause", "offset": [0, 12]}, {"key": "to-convert", "type": "clause", "offset": [24, 34]}, {"key": "unpaid-portion", "type": "clause", "offset": [39, 53]}, {"key": "the-loan", "type": "clause", "offset": [57, 65]}, {"key": "section-34", "type": "clause", "offset": [88, 99]}, {"key": "issue-of-shares", "type": "clause", "offset": [122, 137]}, {"key": "directed-to", "type": "definition", "offset": [147, 158]}, {"key": "subscription-price", "type": "definition", "offset": [237, 255]}, {"key": "setting-off", "type": "clause", "offset": [266, 277]}, {"key": "issue-price", "type": "clause", "offset": [329, 340]}, {"key": "number-of-shares-of-common-stock", "type": "clause", "offset": [346, 378]}, {"key": "according-to", "type": "definition", "offset": [443, 455]}], "snippet": "In the event C&C elects to convert the unpaid portion of the Loan to equity pursuant to Section 3.4 above, a new selected issue of shares shall be directed to C & C by Jesperator whereby C & C shall subscribe for such shares and pay the subscription price by way of setting off in full the unpaid portion of the Loan against the issue price. The number of shares of Common Stock of Jesperator (\u201cCommon Stock\u201d) to be issued shall be calculated according to the following formula:", "samples": [{"hash": "38H2TshSe1G", "uri": "/contracts/38H2TshSe1G#conversion-to-equity", "label": "Exclusive Supply Agreement (Charles & Colvard LTD)", "score": 19.0, "published": true}], "hash": "b13debfb8eadd49bac9776c0d525b38f", "id": 9}], "next_curs": "Cl0SV2oVc35sYXdpbnNpZGVyY29udHJhY3RzcjkLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih1jb252ZXJzaW9uLXRvLWVxdWl0eSMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"size": 46, "title": "Conversion to Equity", "children": [], "parents": [["loans-and-terms-of-payment", "Loans and Terms of Payment"], ["optional-conversion", "Optional Conversion"], ["loan-to-purchase-htcvd-reactor-and-equipment", "Loan to Purchase HTCVD Reactor and Equipment"], ["cash-compensation", "CASH COMPENSATION"], ["governing-law-and-disputes", "GOVERNING LAW AND DISPUTES"]], "id": "conversion-to-equity", "related": [["conversion-shares-issuable-upon-conversion-of-principal-amount", "Conversion Shares Issuable Upon Conversion of Principal Amount", "Conversion Shares Issuable Upon Conversion of Principal Amount"], ["conversion-to-fixed-interest-rate", "Conversion to Fixed Interest Rate", "Conversion to Fixed Interest Rate"], ["conversion-of-note", "Conversion of Note", "Conversion of Note"], ["conversion-privilege-and-conversion-price", "Conversion Privilege and Conversion Price", "Conversion Privilege and Conversion Price"], ["conversion-of-notes", "Conversion of Notes", "Conversion of Notes"]], "related_snippets": [], "updated": "2025-09-12T04:24:41+00:00", "also_ask": ["What triggers should be negotiated for conversion to equity to maximize strategic flexibility?", "Which valuation mechanisms are essential to include to avoid disputes during conversion?", "What are the most common pitfalls or risks that could render a conversion clause unenforceable?", "How does this conversion clause compare to market standards or similar instruments?", "What factors do courts consider when determining the enforceability of conversion to equity provisions?"], "drafting_tip": "Specify conversion terms and trigger events to avoid ambiguity; define valuation method to ensure fairness; set notice requirements to facilitate smooth execution.", "explanation": "The Conversion to Equity clause establishes the terms under which a debt or other financial instrument can be converted into shares of the issuing company. Typically, this clause outlines the conversion ratio, timing, and any conditions that must be met for conversion, such as a qualifying financing round or a specific date. For example, a convertible note may automatically convert into equity at a discounted price if the company raises a certain amount of capital. The core function of this clause is to provide a mechanism for investors to become shareholders, aligning their interests with the company\u2019s growth and offering a pathway for repayment that supports the company\u2019s cash flow."}, "json": true, "cursor": ""}}