Common use of Convertible Note Clause in Contracts

Convertible Note. At Lender’s election and without the payment of any further consideration, this Note may be converted into a Convertible Promissory Note in a form reasonably acceptable to Lender and with the following terms: an automatic conversion into the shares of capital stock issued by Borrower at a conversion price equal to 85% of a $20,900,000 pre-money valuation of Borrower (equal to a per share price of $0.98 on a fully diluted basis) (the “Conversion Rate”).