Convertible Notes and Additional Convertible Notes Clause Samples

Convertible Notes and Additional Convertible Notes. EMVELCO hereby agrees that it shall issue the Convertible Notes to the Members in exchange for their outstanding DC Gas Units in proportion to their membership interest. EMVELCO will issue Convertible Notes in the amount of $25,000,000 concurrently with execution of this Agreement and the remaining Convertible Notes in the amount of $25,000,000 shall be released and distributed in accordance with the following phases: · Convertible Notes in the amount of $5,000,000 shall be issued upon the first well going into production. · Convertible Notes in the amount of $5,000,000 shall be issued upon the second well going into production, · Convertible Notes in the amount of $5,000,000 shall be issued upon the third well going into production, · Convertible Notes in the amount of $5,000,000 shall be issued upon the fourth well going into production and · Convertible Notes in the amount of $5,000,000 shall be issued upon the fifth well going into production. The Convertible Notes shall be issued to the Members in the amounts set forth next to their respective names on Schedule 2.1 to this Agreement. The Members may be entitled to receive Convertible Notes up to an additional amount of $200,000,000 (the “Additional Convertible Notes”) in accordance with the formula set forth on Schedule 2.1 depending upon the gross revenue of DC Gas. The gross revenue shall be the revenue generated from that certain land rights held by DC Gas located in ▇▇▇▇▇▇▇▇ County, Texas less concession fees and taxes.