{"component": "clause", "props": {"groups": [{"snippet": "Unless the Bank shall otherwise consent in writing, if (i) Borrower fails to pay when due, in whole or in part, the indebtedness under this Note (whether by demand or otherwise), or (ii) there exists a condition or event which, with the passage of time, the giving of notice or both, shall constitute an Event of Default under the Loan Agreement or any other Loan Document, the Bank, in its sole discretion, may convert any LIBOR Rate Loan to a Base Rate Loan. Nothing herein shall be construed to be a waiver by the Bank to have any Loan accrue interest at the Default Rate of interest (which shall be calculated from the higher of the LIBOR Rate or the Base Rate, as described above).", "snippet_links": [{"key": "the-bank-shall", "type": "clause", "offset": [7, 21]}, {"key": "consent-in-writing", "type": "clause", "offset": [32, 50]}, {"key": "pay-when-due", "type": "clause", "offset": [77, 89]}, {"key": "the-indebtedness", "type": "clause", "offset": [112, 128]}, {"key": "this-note", "type": "clause", "offset": [135, 144]}, {"key": "passage-of-time", "type": "clause", "offset": [237, 252]}, {"key": "giving-of-notice", "type": "clause", "offset": [258, 274]}, {"key": "event-of-default-under", "type": "definition", "offset": [304, 326]}, {"key": "agreement-or", "type": "definition", "offset": [336, 348]}, {"key": "loan-document", "type": "definition", "offset": [359, 372]}, {"key": "sole-discretion", "type": "definition", "offset": [391, 406]}, {"key": "libor-rate-loan", "type": "definition", "offset": [424, 439]}, {"key": "base-rate-loan", "type": "clause", "offset": [445, 459]}, {"key": "waiver-by-the-bank", "type": "clause", "offset": [503, 521]}, {"key": "any-loan", "type": "clause", "offset": [530, 538]}, {"key": "default-rate-of-interest", "type": "definition", "offset": [562, 586]}, {"key": "the-base-rate", "type": "definition", "offset": [651, 664]}], "size": 8, "samples": [{"hash": "2ACtkYPddT4", "uri": "/contracts/2ACtkYPddT4#conversion-upon-default", "label": "Mortgage Warehouse Loan and Security Agreement", "score": 31.3408622742, "published": true}, {"hash": "kWbjagUVabw", "uri": "/contracts/kWbjagUVabw#conversion-upon-default", "label": "Mortgage Warehouse Loan and Security Agreement (Centerline Holding Co)", "score": 24.1211490631, "published": true}, {"hash": "gIItfTWmAtv", "uri": "/contracts/gIItfTWmAtv#conversion-upon-default", "label": "Mortgage Warehouse Loan and Security Agreement (Centerline Holding Co)", "score": 23.9240245819, "published": true}], "hash": "2866f13b0e9e20dea191fda0f12edfd4", "id": 1}, {"snippet": "Unless the Lender shall otherwise consent in writing, if (i) Borrower fails to pay when due, in whole or in part, the Obligations, or (ii) there exists any Event of Default or other Default with respect to which Lender has given a required notice of default as a precondition to the occurrence of an Event of Default, no conversion or continuation elections by the Borrower shall be permitted, and the Lender, in its sole discretion, may (i) permit any outstanding LIBOR Loan to continue until the last day of the applicable Interest Period at which time such Loan shall automatically be converted into a Base Rate Loan or (ii) convert any outstanding LIBOR Loan into a Base Rate Loan before the end of the applicable Interest Period applicable to such LIBOR Loan. Nothing herein shall be construed to be a waiver by the Lender to have any Loan accrue interest at the Default Rate or the right of the Lender to charge and collect Breakage Costs.", "snippet_links": [{"key": "consent-in-writing", "type": "clause", "offset": [34, 52]}, {"key": "pay-when-due", "type": "clause", "offset": [79, 91]}, {"key": "the-obligations", "type": "clause", "offset": [114, 129]}, {"key": "other-default", "type": "definition", "offset": [176, 189]}, {"key": "with-respect-to", "type": "clause", "offset": [190, 205]}, {"key": "required-notice-of-default", "type": "clause", "offset": [231, 257]}, {"key": "occurrence-of-an-event-of-default", "type": "clause", "offset": [283, 316]}, {"key": "the-borrower-shall", "type": "clause", "offset": [361, 379]}, {"key": "sole-discretion", "type": "definition", "offset": [417, 432]}, {"key": "libor-loan", "type": "clause", "offset": [465, 475]}, {"key": "day-of", "type": "clause", "offset": [503, 509]}, {"key": "applicable-interest-period", "type": "definition", "offset": [514, 540]}, {"key": "loan-shall", "type": "definition", "offset": [560, 570]}, {"key": "base-rate-loan", "type": "clause", "offset": [605, 619]}, {"key": "applicable-to", "type": "clause", "offset": [734, 747]}, {"key": "waiver-by-the-lender", "type": "clause", "offset": [807, 827]}, {"key": "any-loan", "type": "clause", "offset": [836, 844]}, {"key": "default-rate", "type": "definition", "offset": [868, 880]}, {"key": "right-of-the-lender", "type": "clause", "offset": [888, 907]}, {"key": "to-charge", "type": "clause", "offset": [908, 917]}, {"key": "breakage-costs", "type": "definition", "offset": [930, 944]}], "size": 7, "samples": [{"hash": "djuQaGltPlG", "uri": "/contracts/djuQaGltPlG#conversion-upon-default", "label": "Credit Facility Agreement (Iec Electronics Corp)", "score": 29.5927448273, "published": true}, {"hash": "3bZXaj6Thfd", "uri": "/contracts/3bZXaj6Thfd#conversion-upon-default", "label": "Credit Facility Agreement (Iec Electronics Corp)", "score": 25.1136207581, "published": true}, {"hash": "7x7Cx0u4DE0", "uri": "/contracts/7x7Cx0u4DE0#conversion-upon-default", "label": "Credit Facility Agreement (Iec Electronics Corp)", "score": 24.0663928986, "published": true}], "hash": "db6ee29d93bbc9afb36300d6e6f72f1b", "id": 2}, {"snippet": "Unless the Lender shall otherwise consent in writing, if (i) Borrower fails to pay when due, in whole or in part, the Obligations, or (ii) there exists any Default, no conversion or continuation elections by the Borrower shall be permitted, and the Lender, in its sole discretion, may (i) permit any outstanding LIBOR Loans to continue until the last day of the applicable Interest Period at which time such LIBOR Loan shall automatically be converted into a Prime Rate Loan or (ii) convert any outstanding LIBOR Loans into a Prime Rate Loan before the end of the applicable Interest Period applicable to such LIBOR Loan. Nothing herein shall be construed to be a waiver by the Lender to have any Loan accrue interest at the Default Rate or the right of the Lender to charge and collect a Breakage Fee.", "snippet_links": [{"key": "consent-in-writing", "type": "clause", "offset": [34, 52]}, {"key": "pay-when-due", "type": "clause", "offset": [79, 91]}, {"key": "the-obligations", "type": "clause", "offset": [114, 129]}, {"key": "the-borrower-shall", "type": "clause", "offset": [208, 226]}, {"key": "sole-discretion", "type": "definition", "offset": [264, 279]}, {"key": "loans-to", "type": "clause", "offset": [318, 326]}, {"key": "day-of", "type": "clause", "offset": [351, 357]}, {"key": "applicable-interest-period", "type": "definition", "offset": [362, 388]}, {"key": "loan-shall", "type": "definition", "offset": [414, 424]}, {"key": "prime-rate-loan", "type": "definition", "offset": [459, 474]}, {"key": "applicable-to", "type": "clause", "offset": [591, 604]}, {"key": "waiver-by-the-lender", "type": "clause", "offset": [664, 684]}, {"key": "any-loan", "type": "clause", "offset": [693, 701]}, {"key": "default-rate", "type": "definition", "offset": [725, 737]}, {"key": "right-of-the-lender", "type": "clause", "offset": [745, 764]}, {"key": "to-charge", "type": "clause", "offset": [765, 774]}, {"key": "breakage-fee", "type": "definition", "offset": [789, 801]}], "size": 5, "samples": [{"hash": "8xb4QIKk71U", "uri": "/contracts/8xb4QIKk71U#conversion-upon-default", "label": "Credit Facility Agreement (Transcat Inc)", "score": 32.5263519287, "published": true}, {"hash": "bjr2mpQkXZW", "uri": "/contracts/bjr2mpQkXZW#conversion-upon-default", "label": "Credit Facility Agreement (Transcat Inc)", "score": 31.5927448273, "published": true}, {"hash": "dil4g3pP3SZ", "uri": "/contracts/dil4g3pP3SZ#conversion-upon-default", "label": "Credit Facility Agreement (Transcat Inc)", "score": 28.8384666443, "published": true}], "hash": "4854366090a3276a5400a8460f29eaff", "id": 4}, {"snippet": "Unless the Bank shall otherwise consent in writing, if (i) Borrower has failed to pay when due, in whole or in part, the indebtedness under the Note (whether upon maturity, acceleration or otherwise), or (ii) there exists a condition or event which with the passage of time, the giving of notice or both shall constitute an Event of Default, the Bank, in its sole discretion, may (i) permit the LIBOR Rate to continue until the last day of the applicable Interest Period at which time such the Applicable Rate shall automatically be converted to the Base Rate or (ii) convert the LIBOR Rate to the Base Rate before the end of the applicable Interest Period. Notwithstanding the foregoing, if Borrower commences, or has commenced against it, any proceeding or request for relief under any bankruptcy, insolvency or similar laws now or hereafter in effect in the United States of America or any state or territory thereof or any foreign jurisdiction or any formal or informal proceeding for the dissolution or liquidation of, settlement of claims against or winding up of affairs of Borrower (a \"Bankruptcy Event\"), the Applicable Rate shall be automatically converted to the Base Rate without further action by the Bank and Borrower shall have no right to have the Applicable Rate converted from the Base Rate to the LIBOR Rate. Nothing herein shall be construed to be a waiver by the Bank to have the Principal Amount accrue interest at the Default Rate or the right of the Bank to the amounts set forth in Section 2(h) of this Note.", "snippet_links": [{"key": "the-bank-shall", "type": "clause", "offset": [7, 21]}, {"key": "consent-in-writing", "type": "clause", "offset": [32, 50]}, {"key": "pay-when-due", "type": "clause", "offset": [82, 94]}, {"key": "the-indebtedness", "type": "clause", "offset": [117, 133]}, {"key": "the-note", "type": "clause", "offset": [140, 148]}, {"key": "upon-maturity", "type": "clause", "offset": [158, 171]}, {"key": "passage-of-time", "type": "clause", "offset": [258, 273]}, {"key": "giving-of-notice", "type": "clause", "offset": [279, 295]}, {"key": "an-event-of-default", "type": "clause", "offset": [321, 340]}, {"key": "sole-discretion", "type": "definition", "offset": [359, 374]}, {"key": "libor-rate", "type": "definition", "offset": [395, 405]}, {"key": "day-of", "type": "clause", "offset": [433, 439]}, {"key": "applicable-interest-period", "type": "definition", "offset": [444, 470]}, {"key": "applicable-rate", "type": "clause", "offset": [494, 509]}, {"key": "the-base-rate", "type": "definition", "offset": [546, 559]}, {"key": "notwithstanding-the-foregoing", "type": "clause", "offset": [658, 687]}, {"key": "if-borrower", "type": "clause", "offset": [689, 700]}, {"key": "request-for-relief", "type": "clause", "offset": [759, 777]}, {"key": "similar-laws", "type": "definition", "offset": [814, 826]}, {"key": "in-effect", "type": "clause", "offset": [844, 853]}, {"key": "the-united-states-of-america", "type": "clause", "offset": [857, 885]}, {"key": "state-or-territory", "type": "definition", "offset": [893, 911]}, {"key": "foreign-jurisdiction", "type": "clause", "offset": [927, 947]}, {"key": "informal-proceeding", "type": "definition", "offset": [965, 984]}, {"key": "dissolution-or-liquidation", "type": "clause", "offset": [993, 1019]}, {"key": "settlement-of-claims", "type": "definition", "offset": [1024, 1044]}, {"key": "winding-up-of-affairs", "type": "clause", "offset": [1056, 1077]}, {"key": "bankruptcy-event", "type": "definition", "offset": [1094, 1110]}, {"key": "action-by-the", "type": "clause", "offset": [1200, 1213]}, {"key": "borrower-shall", "type": "clause", "offset": [1223, 1237]}, {"key": "right-to-have", "type": "clause", "offset": [1246, 1259]}, {"key": "waiver-by-the-bank", "type": "clause", "offset": [1370, 1388]}, {"key": "the-principal-amount", "type": "definition", "offset": [1397, 1417]}, {"key": "default-rate", "type": "definition", "offset": [1441, 1453]}, {"key": "right-of-the-bank-to", "type": "clause", "offset": [1461, 1481]}, {"key": "this-note", "type": "clause", "offset": [1523, 1532]}], "size": 7, "samples": [{"hash": "fEvdJLDbAyH", "uri": "/contracts/fEvdJLDbAyH#conversion-upon-default", "label": "Term Loan Credit Agreement (Financial Institutions Inc)", "score": 18.0, "published": true}], "hash": "029652944f57d5f65eefea4d6a85ba3d", "id": 3}, {"snippet": "Unless the Bank shall otherwise consent in writing, if (i) Borrower has failed to pay when due, in whole or in part, the indebtedness under the Note (whether upon maturity, acceleration or otherwise), or (ii) there exists a condition or event which with the passage of time, the giving of notice or both shall constitute an Event of Default, the Bank, in its sole discretion, may (i) permit the LIBOR Rate to continue until the last day of the applicable Interest Period at which time such the Applicable Rate shall automatically be converted to the Base Rate or (ii) convert the LIBOR Rate to the Base Rate before the end of the applicable Interest Period. Notwithstanding the foregoing, upon the occurrence of an Event of Default in Section 5(ix), the Applicable Rate shall be automatically converted to the Base Rate without further action by the Bank and Borrower shall have no right to have the Applicable Rate converted from the Base Rate to the LIBOR Rate. Nothing herein shall be construed to be a waiver by the Bank to have the Principal Amount accrue interest at the Default Rate or the right of the Bank to the amounts set forth in Section 2(h) of this Note, if any.", "snippet_links": [{"key": "the-bank-shall", "type": "clause", "offset": [7, 21]}, {"key": "consent-in-writing", "type": "clause", "offset": [32, 50]}, {"key": "pay-when-due", "type": "clause", "offset": [82, 94]}, {"key": "the-indebtedness", "type": "clause", "offset": [117, 133]}, {"key": "the-note", "type": "clause", "offset": [140, 148]}, {"key": "upon-maturity", "type": "clause", "offset": [158, 171]}, {"key": "passage-of-time", "type": "clause", "offset": [258, 273]}, {"key": "giving-of-notice", "type": "clause", "offset": [279, 295]}, {"key": "sole-discretion", "type": "definition", "offset": [359, 374]}, {"key": "libor-rate", "type": "definition", "offset": [395, 405]}, {"key": "day-of", "type": "clause", "offset": [433, 439]}, {"key": "applicable-interest-period", "type": "definition", "offset": [444, 470]}, {"key": "applicable-rate", "type": "clause", "offset": [494, 509]}, {"key": "the-base-rate", "type": "definition", "offset": [546, 559]}, {"key": "notwithstanding-the-foregoing", "type": "clause", "offset": [658, 687]}, {"key": "upon-the-occurrence-of-an-event-of-default", "type": "clause", "offset": [689, 731]}, {"key": "action-by-the", "type": "clause", "offset": [836, 849]}, {"key": "borrower-shall", "type": "clause", "offset": [859, 873]}, {"key": "right-to-have", "type": "clause", "offset": [882, 895]}, {"key": "waiver-by-the-bank", "type": "clause", "offset": [1006, 1024]}, {"key": "the-principal-amount", "type": "definition", "offset": [1033, 1053]}, {"key": "default-rate", "type": "definition", "offset": [1077, 1089]}, {"key": "right-of-the-bank-to", "type": "clause", "offset": [1097, 1117]}, {"key": "this-note", "type": "clause", "offset": [1159, 1168]}], "size": 3, "samples": [{"hash": "8esX1MDZDrY", "uri": "/contracts/8esX1MDZDrY#conversion-upon-default", "label": "Libor Term Note (Grumbacher M Thomas)", "score": 18.0, "published": true}, {"hash": "4eCvx0vqBUn", "uri": "/contracts/4eCvx0vqBUn#conversion-upon-default", "label": "Libor Term Note (Peoples Educational Holdings)", "score": 18.0, "published": true}], "hash": "106688d2dde969de6d1dc34da3953d92", "id": 5}, {"snippet": "In the event of a Default (as defined herein), Lender shall have the right to convert all outstanding Principal and accrued Interest into shares of common stock of Borrower at the Conversion Price.", "snippet_links": [{"key": "a-default", "type": "definition", "offset": [16, 25]}, {"key": "right-to-convert", "type": "clause", "offset": [69, 85]}, {"key": "outstanding-principal", "type": "definition", "offset": [90, 111]}, {"key": "accrued-interest", "type": "definition", "offset": [116, 132]}, {"key": "stock-of-borrower", "type": "clause", "offset": [155, 172]}, {"key": "conversion-price", "type": "clause", "offset": [180, 196]}], "size": 2, "samples": [{"hash": "jeyaUZ0XAX6", "uri": "/contracts/jeyaUZ0XAX6#conversion-upon-default", "label": "Convertible Promissory Note Agreement (Eva Live Inc)", "score": 35.2026023865, "published": true}, {"hash": "7QnrcknBMf1", "uri": "/contracts/7QnrcknBMf1#conversion-upon-default", "label": "Convertible Promissory Note Agreement (Eva Live Inc)", "score": 35.1177275838, "published": true}], "hash": "6e5bb98302eb85cee736e00e725efaa4", "id": 6}, {"snippet": "Unless the Administrative Agent shall otherwise consent in writing, if (i) Borrowers fail to pay when due, in whole or in part, any of the Obligations (whether by demand or otherwise), or (ii) there exists an Event of Default, the Administrative Agent, in its sole discretion, may convert any or all SOFR Loans to Base Rate Loans. Nothing herein shall be construed to be a waiver by the Administrative Agent or any of the Lenders to have any Loan accrue interest at the Default Rate of interest.", "snippet_links": [{"key": "agent-shall", "type": "definition", "offset": [26, 37]}, {"key": "consent-in-writing", "type": "clause", "offset": [48, 66]}, {"key": "pay-when-due", "type": "clause", "offset": [93, 105]}, {"key": "the-obligations", "type": "clause", "offset": [135, 150]}, {"key": "an-event-of-default", "type": "clause", "offset": [206, 225]}, {"key": "sole-discretion", "type": "definition", "offset": [260, 275]}, {"key": "loans-to", "type": "clause", "offset": [305, 313]}, {"key": "base-rate-loans", "type": "clause", "offset": [314, 329]}, {"key": "waiver-by-the", "type": "clause", "offset": [373, 386]}, {"key": "the-lenders", "type": "clause", "offset": [418, 429]}, {"key": "any-loan", "type": "clause", "offset": [438, 446]}, {"key": "default-rate-of-interest", "type": "definition", "offset": [470, 494]}], "size": 2, "samples": [{"hash": "4ajht2uCwsZ", "uri": "/contracts/4ajht2uCwsZ#conversion-upon-default", "label": "Credit Agreement (GPB Automotive Portfolio, LP)", "score": 33.2819976807, "published": true}, {"hash": "l9lwAXmZZl", "uri": "/contracts/l9lwAXmZZl#conversion-upon-default", "label": "Credit Agreement (GPB Automotive Portfolio, LP)", "score": 33.0930862427, "published": true}], "hash": "24363ae4215cbe3188610ade00ed6806", "id": 7}, {"snippet": "Unless the Administrative Agent shall otherwise consent in writing, if a Potential Default or Event of Default has occurred and is continuing, Borrower may not elect to have any advance converted or continued as a LIBOR Loan or obtain any advance which bears interest at a LIBOR Based Rate. Further, the Administrative Agent, in its sole discretion, may (i) permit any outstanding LIBOR Loans to continue until the last day of the applicable Interest Period at which time such Loan shall automatically be converted into a Base Rate Loan or (ii) convert any outstanding LIBOR Loans into a Base Rate Loan before the end of the applicable Interest Period applicable to such LIBOR Loan. Nothing herein shall be construed to be a waiver by Administrative Agent to have any Loan accrue interest at the Default Interest Rate or the right of the Administrative Agent to the amounts set forth in Section 2.13(d) of this Agreement.", "snippet_links": [{"key": "agent-shall", "type": "definition", "offset": [26, 37]}, {"key": "consent-in-writing", "type": "clause", "offset": [48, 66]}, {"key": "default-or-event-of-default", "type": "definition", "offset": [83, 110]}, {"key": "any-advance", "type": "clause", "offset": [174, 185]}, {"key": "sole-discretion", "type": "definition", "offset": [333, 348]}, {"key": "loans-to", "type": "clause", "offset": [387, 395]}, {"key": "day-of", "type": "clause", "offset": [420, 426]}, {"key": "applicable-interest-period", "type": "definition", "offset": [431, 457]}, {"key": "loan-shall", "type": "definition", "offset": [477, 487]}, {"key": "base-rate-loan", "type": "clause", "offset": [522, 536]}, {"key": "applicable-to", "type": "clause", "offset": [652, 665]}, {"key": "any-loan", "type": "clause", "offset": [764, 772]}, {"key": "default-interest-rate", "type": "clause", "offset": [796, 817]}, {"key": "right-of-the-administrative-agent-to", "type": "clause", "offset": [825, 861]}, {"key": "this-agreement", "type": "clause", "offset": [906, 920]}], "size": 2, "samples": [{"hash": "71K7W37xFv2", "uri": "/contracts/71K7W37xFv2#conversion-upon-default", "label": "Loan Agreement (Computer Task Group Inc)", "score": 25.3312797546, "published": true}, {"hash": "79qkAvdfi8q", "uri": "/contracts/79qkAvdfi8q#conversion-upon-default", "label": "Loan Agreement (Computer Task Group Inc)", "score": 21.0, "published": true}], "hash": "5746cba80334547ad71ba616c0f48814", "id": 8}, {"snippet": "Unless the Bank shall otherwise consent in writing, if (i) Borrower fails to pay when due, in whole or in part, the indebtedness under the Note (whether by acceleration or otherwise), or (ii) there exists any condition or. event which with the passage of time, the giving of notice or both shall constitute an event of default under any of Borrower\u2019s, agreement with the Bank, if any, the Bank, in its sole discretion, may (i) permit any outstanding LIBOR Rate Loans to continue until the last day of the applicable Interest Period at which time such Loan shall automatically be converted into a Base Rate Loan or (ii) convert any outstanding LIBOR Rate Loans into a Base Rate Loan before the end of the applicable Interest Period applicable to such LIBOR Rate Loan. Nothing herein shall be, construed to be a waiver by the Bank to have any Loan accrue interest at the Default Rate of interest (which shall be calculated from the higher of the LIBOR Rate or the Base Rate) or the right of the Bank to charge and collect a Breakage Fee.", "snippet_links": [{"key": "the-bank-shall", "type": "clause", "offset": [7, 21]}, {"key": "consent-in-writing", "type": "clause", "offset": [32, 50]}, {"key": "pay-when-due", "type": "clause", "offset": [77, 89]}, {"key": "the-indebtedness", "type": "clause", "offset": [112, 128]}, {"key": "the-note", "type": "clause", "offset": [135, 143]}, {"key": "passage-of-time", "type": "clause", "offset": [244, 259]}, {"key": "giving-of-notice", "type": "clause", "offset": [265, 281]}, {"key": "event-of-default-under", "type": "definition", "offset": [310, 332]}, {"key": "with-the-bank", "type": "clause", "offset": [362, 375]}, {"key": "sole-discretion", "type": "definition", "offset": [402, 417]}, {"key": "loans-to", "type": 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true}], "hash": "aac7d57324dfe36322c3bc12e1ce6473", "id": 9}, {"snippet": "If, by the Maturity Date either (a) the Borrower shall not have repaid the Loan Amount, or (b) the Lender shall have not elected to receive the Voluntary Conversion Shares, then the Lender shall have the right to convert the Loan Amount into shares of Preferred Stock (the \u201cDefault Conversion Shares\u201d), at a conversion price per share of US$0.10 (ten United States Cents).", "snippet_links": [{"key": "maturity-date", "type": "clause", "offset": [11, 24]}, {"key": "the-borrower-shall", "type": "clause", "offset": [36, 54]}, {"key": "the-loan-amount", "type": "clause", "offset": [71, 86]}, {"key": "the-lender", "type": "clause", "offset": [95, 105]}, {"key": "to-receive", "type": "definition", "offset": [129, 139]}, {"key": "conversion-shares", "type": "definition", "offset": [154, 171]}, {"key": "right-to-convert", "type": "clause", "offset": [204, 220]}, {"key": "shares-of-preferred-stock", "type": "definition", "offset": [242, 267]}, {"key": "default-conversion", "type": "clause", "offset": [274, 292]}, {"key": "conversion-price-per-share", "type": "definition", "offset": [308, 334]}, {"key": "united-states", "type": "definition", "offset": [351, 364]}], "size": 1, "samples": [{"hash": "kv29Be3oSlE", "uri": "/contracts/kv29Be3oSlE#conversion-upon-default", "label": "Convertible Loan Agreement (Phoenix International Ventures, Inc.)", "score": 20.7385349274, "published": true}], "hash": "fa51e68a2531cf74dc54f6df6448d546", "id": 10}], "next_curs": "CmASWmoVc35sYXdpbnNpZGVyY29udHJhY3RzcjwLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IiBjb252ZXJzaW9uLXVwb24tZGVmYXVsdCMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"title": "Conversion upon Default", "parents": [["notice-and-manner-of-borrowing-continuations-conversions-and-funding", "Notice and Manner of Borrowing Continuations Conversions and Funding"], ["continuations-and-conversions", "Continuations and Conversions"], ["waiver-of-jury-trial", "WAIVER OF JURY TRIAL"], ["use-of-proceeds", "Use of Proceeds"], ["continuation-and-conversion", "Continuation and Conversion"]], "children": [["increased-costs", "Increased Costs"], ["inability-to-determine-rates", "Inability to Determine Rates"], ["illegality", "Illegality"]], "size": 41, "id": "conversion-upon-default", "related": [["action-upon-default", "Action Upon Default", "Action Upon Default"], ["termination-upon-default", "Termination Upon Default", "Termination Upon Default"], ["succession-upon-default", "Succession upon Default", "Succession upon Default"], ["rights-upon-default", "Rights Upon Default", "Rights Upon Default"], ["upon-default", "Upon Default", "Upon Default"]], "related_snippets": [], "updated": "2026-03-21T05:57:23+00:00", "also_ask": ["What negotiation leverage does a 'Conversion upon Default' clause provide to each party?", "What essential terms must be included to ensure enforceability of this clause?", "What are the most common legal pitfalls or fatal flaws in drafting this provision?", "How do courts typically interpret and enforce 'Conversion upon Default' clauses?", "How does this clause compare to alternative remedies for default in similar agreements?"], "drafting_tip": "Specify default events triggering conversion to clarify parties' obligations; define conversion terms to prevent disputes; require notice procedures to ensure enforceability.", "explanation": "The \"Conversion upon Default\" clause establishes that, in the event of a default by a party\u2014typically the borrower\u2014certain obligations, such as outstanding debt, may be automatically converted into another form, often equity in the company. This mechanism is triggered when predefined default conditions occur, such as missed payments or insolvency, and outlines the terms, conversion rate, and process for the conversion. Its core practical function is to provide a clear, pre-agreed remedy for lenders or investors, allowing them to recover value and potentially participate in the upside of the company, while also incentivizing the borrower to avoid default."}, "json": true, "cursor": ""}}