{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "section-7", "type": "clause", "offset": [29, 38]}, {"key": "section-10", "type": "definition", "offset": [43, 53]}, {"key": "at-any-time", "type": "clause", "offset": [55, 66]}, {"key": "initial-issuance-date", "type": "definition", "offset": [92, 113]}, {"key": "to-convert", "type": "clause", "offset": [144, 154]}, {"key": "number-of-preferred-shares", "type": "clause", "offset": [165, 191]}, {"key": "unpaid-dividends", "type": "clause", "offset": [228, 244]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [315, 337]}, {"key": "in-accordance-with", "type": "clause", "offset": [338, 356]}, {"key": "conversion-rate", "type": "definition", "offset": [377, 392]}], "samples": [{"hash": "fibBQIgI602", "uri": "/contracts/fibBQIgI602#holders-conversion-right", "label": "Agreement and Plan of Merger (Cano Petroleum, Inc)", "score": 21.2600955963, "published": true}, {"hash": "f7wwAkX9XYL", "uri": "/contracts/f7wwAkX9XYL#holders-conversion-right", "label": "Investors Rights Agreement (Cano Petroleum, Inc)", "score": 21.2600955963, "published": true}, {"hash": "HXYQsHl90k", "uri": "/contracts/HXYQsHl90k#holders-conversion-right", "label": "Securities Purchase Agreement (Cano Petroleum, Inc)", "score": 21.0, "published": true}], "snippet": "Subject to the provisions of Section 7 and Section 10, at any time or times on or after the Initial Issuance Date, any Holder shall be entitled to convert any whole number of Preferred Shares, plus the amount of any accrued but unpaid Dividends per Preferred Share then remaining, into fully paid and nonassessable shares of Common Stock in accordance with Section 2(d) at the Conversion Rate (as defined below).", "size": 10, "hash": "0a2fe3996abd4c8538a945b5f1dbf5ca", "id": 2}, {"snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [0, 11]}, {"key": "initial-issuance-date", "type": "definition", "offset": [37, 58]}, {"key": "to-convert", "type": "clause", "offset": [89, 99]}, {"key": "number-of-preferred-shares", "type": "clause", "offset": [110, 136]}, {"key": "unpaid-dividends", "type": "clause", "offset": [173, 189]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [245, 267]}, {"key": "in-accordance-with", "type": "clause", "offset": [268, 286]}, {"key": "conversion-rate", "type": "definition", "offset": [307, 322]}], "samples": [{"hash": "gRWtntXsWVc", "uri": "/contracts/gRWtntXsWVc#holders-conversion-right", "label": "Merger Agreement (Digitalglobe Inc)", "score": 23.5571517944, "published": true}, {"hash": "eJIbdUEL1dv", "uri": "/contracts/eJIbdUEL1dv#holders-conversion-right", "label": "Merger Agreement (GeoEye, Inc.)", "score": 23.5571517944, "published": true}, {"hash": "1mAUs9VSxLw", "uri": "/contracts/1mAUs9VSxLw#holders-conversion-right", "label": "Shareholder Agreement (Digitalglobe Inc)", "score": 23.5571517944, "published": true}], "snippet": "At any time or times on or after the Initial Issuance Date, any Holder shall be entitled to convert any whole number of Preferred Shares, plus the amount of any accrued but unpaid Dividends per Preferred Share, into fully paid and nonassessable shares of Common Stock in accordance with Section 3(c) at the Conversion Rate.", "size": 7, "hash": "213a2ee0af04a3c042de2ca561e7e078", "id": 4}, {"snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [0, 11]}, {"key": "issuance-date", "type": "definition", "offset": [37, 50]}, {"key": "the-holder", "type": "clause", "offset": [52, 62]}, {"key": "to-convert", "type": "clause", "offset": [81, 91]}, {"key": "unpaid-principal-amount", "type": "definition", "offset": [119, 142]}, {"key": "this-note", "type": "clause", "offset": [146, 155]}, {"key": "fully-paid", "type": "clause", "offset": [161, 171]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [191, 213]}, {"key": "in-accordance-with", "type": "clause", "offset": [214, 232]}, {"key": "conversion-rate", "type": "definition", "offset": [256, 271]}, {"key": "the-company-shall", "type": "clause", "offset": [292, 309]}, {"key": "fraction-of-a-share", "type": "clause", "offset": [324, 343]}], "samples": [{"hash": "keiucNzaNNV", "uri": "/contracts/keiucNzaNNV#holders-conversion-right", "label": "Purchase Agreement (Ingen Technologies, Inc.)", "score": 22.3264884949, "published": true}, {"hash": "ZDld0r44Hg", "uri": "/contracts/ZDld0r44Hg#holders-conversion-right", "label": "Note (Red Giant Entertainment, Inc.)", "score": 21.9260787964, "published": true}], "snippet": "At any time or times on or after the Issuance Date, the Holder shall be entitled to convert all of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock in accordance with Paragraph 2(d), at the Conversion Rate (as defined below). 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"Securities Agreement (Sanomedics International Holdings, Inc)", "score": 25.8295688629, "published": true}], "snippet": "At any time after the Original Issue Date until this Debenture is no longer outstanding, this Debenture, including interest and principal, shall be convertible into shares of Common Stock at a price of Sixty Five Percent (65%) of the lowest traded VWAP, determined on the then current trading market for the Company\u2019s common stock, for 10 trading days prior to conversion (the \u201cSet Price\u201d) at the option of the Holder, in whole at any time and from time to time. The Holder shall effect conversions by delivering to the Company the form of Notice of Conversion attached hereto as Exhibit B (\"Notice of Conversion\"), specifying the date on which such conversion is to be effected (a \"Conversion Date\"). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is provided hereunder. To effect conversions hereunder, the Holder shall not be required to physically surrender Debentures to the Company. The Company shall deliver any objection to any Notice of Conversion within TWO (2) Business Days of receipt of such notice. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. If the Company does not request the issuance of the shares underlying this Debenture after receipt of a Notice of Conversion within TWO (2) Business days following the period allowed for any objection, the Company shall be responsible for any differential in the value of the converted shares underlying this Debenture between the value of the closing price on the date the shares should have been delivered and the date the shares are delivered. In addition, if the COMPANY fails to timely (within 72 hours, 3 business days), deliver the shares per the instructions of the HOLDER, free and clear of all legends in legal free trading form, the COMPANY shall allow HOLDER to add two (2) days to the lookback (the mechanism used to obtain the conversion price along with discount) for each day the COMPANY fails to timely (within 72 hours, 3 business days)) deliver shares, on the next conversion. The Holder and any assignee, by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Debenture, the unpaid and unconverted principal amount of this Debenture may be less than the amount stated on the face hereof. Any Opinion Letter required to effectuate the issuance of the shares pursuant to this Paragraph 4(a) and the Notice of Conversion shall be provided and issued by Company. The Holder may use another attorney in it\u2019s sole discretion for the opinion. The parties hereby agree that the company will cover all legal costs associated with the issuance of the Opinion Letter to the Transfer Agent.", "size": 19, "hash": "9ede99cd4ca24ec7d2fc1da1d43ccc94", "id": 1}, {"snippet_links": [{"key": "the-provisions-of-section", "type": "clause", "offset": [11, 36]}, {"key": "at-any-time", "type": "clause", "offset": [43, 54]}, {"key": "initial-issuance-date", "type": "definition", "offset": [80, 101]}, {"key": "to-convert", "type": "clause", "offset": [133, 143]}, {"key": "outstanding-preferred-shares", "type": "definition", "offset": [163, 191]}, {"key": "validly-issued", "type": "clause", "offset": [217, 231]}, {"key": "fully-paid", "type": "clause", "offset": [233, 243]}, {"key": "conversion-shares", "type": "definition", "offset": [263, 280]}, {"key": "in-accordance-with", "type": "clause", "offset": [281, 299]}, {"key": "conversion-rate", "type": "definition", "offset": [320, 335]}, {"key": "the-company-shall", "type": "clause", "offset": [356, 373]}, {"key": "fraction-of-a-share", "type": "clause", "offset": [388, 407]}, {"key": "the-issuance", "type": "clause", "offset": [448, 460]}, {"key": "costs-and-expenses", "type": "clause", "offset": [707, 725]}, {"key": "without-limitation", "type": "clause", "offset": [738, 756]}, {"key": "the-transfer-agent", "type": "definition", "offset": [779, 797]}, {"key": "with-respect-to", "type": "clause", "offset": [818, 833]}, {"key": "conversion-of", "type": "clause", "offset": [881, 894]}], "samples": [{"hash": "9uDOV0qGnHr", "uri": "/contracts/9uDOV0qGnHr#holders-conversion-right", "label": "Securities Purchase Agreement (IMAC Holdings, Inc.)", "score": 35.3709793091, "published": true}, {"hash": "gDOSJkjjVES", "uri": "/contracts/gDOSJkjjVES#holders-conversion-right", "label": "Settlement Agreement (IMAC Holdings, Inc.)", "score": 35.3299102783, "published": true}, {"hash": "1milGhKlxFs", "uri": "/contracts/1milGhKlxFs#holders-conversion-right", "label": "Securities Purchase Agreement (IMAC Holdings, Inc.)", "score": 35.3299102783, "published": true}], "snippet": "Subject to the provisions of Section 4(d), at any time or times on or after the Initial Issuance Date, each Holder shall be entitled to convert any portion of the outstanding Preferred Shares held by such Holder into validly issued, fully paid and non-assessable Conversion Shares in accordance with Section 4(c) at the Conversion Rate (as defined below). The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Preferred Shares).", "size": 10, "hash": "8f077377f4c1d46d620c37fc476aade7", "id": 3}, {"snippet_links": [{"key": "the-provisions-of-section", "type": "clause", "offset": [11, 36]}, {"key": "at-any-time", "type": "clause", "offset": [43, 54]}, {"key": "initial-convertibility-date", "type": "definition", "offset": [80, 107]}, {"key": "to-convert", "type": "clause", "offset": [138, 148]}, {"key": "number-of-preferred-shares", "type": "clause", "offset": [159, 185]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [220, 242]}, {"key": "in-accordance-with", "type": "clause", "offset": [243, 261]}, {"key": "conversion-rate", "type": "definition", "offset": [282, 297]}], "samples": [{"hash": "g1QelbjUzTO", "uri": "/contracts/g1QelbjUzTO#holders-conversion-right", "label": "Agreement of Merger and Plan of Reorganization (Eon Communications Corp)", "score": 25.2272415161, "published": true}, {"hash": "33Mte5h7Ema", "uri": "/contracts/33Mte5h7Ema#holders-conversion-right", "label": "Exchange Agreement (Eon Communications Corp)", "score": 25.2272415161, "published": true}, {"hash": "fQUWMcCHdZd", "uri": "/contracts/fQUWMcCHdZd#holders-conversion-right", "label": "Securities Purchase Agreement (Eon Communications Corp)", "score": 24.9616699219, "published": true}], "snippet": "Subject to the provisions of Section 2(f), at any time or times on or after the Initial Convertibility Date, any Holder shall be entitled to convert any whole number of Preferred Shares into fully paid and nonassessable shares of Common Stock in accordance with Section 2(c) at the Conversion Rate (as defined below).", "size": 4, "hash": "5dc8c2c83ab869956905e5e241901fcd", "id": 7}, {"snippet_links": [{"key": "prior-to-the", "type": "clause", "offset": [44, 56]}, {"key": "approved-sale", "type": "clause", "offset": [112, 125]}, {"key": "conversion-event", "type": "clause", "offset": [186, 202]}, {"key": "the-company-shall", "type": "clause", "offset": [206, 223]}, {"key": "deliver-to", "type": "definition", "offset": [224, 234]}, {"key": "registered-holder", "type": "definition", "offset": [240, 257]}, {"key": "with-respect-to", "type": "clause", "offset": [273, 288]}, {"key": "applicable-holder", "type": "definition", "offset": [329, 346]}, {"key": "acceleration-right", "type": "definition", "offset": [355, 373]}, {"key": "written-notice", "type": "definition", "offset": [408, 422]}, {"key": "conversion-election-notice", "type": "clause", "offset": [437, 463]}, {"key": "the-conversion", "type": "clause", "offset": [481, 495]}, {"key": "an-eligible", "type": "clause", "offset": [524, 535]}, {"key": "the-registered", "type": "clause", "offset": [547, 561]}], "samples": [{"hash": "fkFyqx62mxT", "uri": "/contracts/fkFyqx62mxT#holders-conversion-right", "label": "Series a Subordinated Convertible Debenture (Pods Inc)", "score": 18.0, "published": true}, {"hash": "8XTTS2x2pkN", "uri": "/contracts/8XTTS2x2pkN#holders-conversion-right", "label": "Series a Subordinated Convertible Debenture (Pods Inc)", "score": 18.0, "published": true}, {"hash": "16o3IWeTfBR", "uri": "/contracts/16o3IWeTfBR#holders-conversion-right", "label": "Series a Subordinated Convertible Debenture (Pods Inc)", "score": 18.0, "published": true}], "snippet": "On a date that is at least thirty (30) days prior to the date on which the Company is obligated to close on an \"Approved Sale\" (as defined below) or an \"IPO\" (as defined below) (each a \"Conversion Event\"), the Company shall deliver to each registered holder of a Debenture with respect to which there has been no exercise of the applicable Holder Payment Acceleration Right (each an \"Eligible Debenture\"), a written notice (the \"Company Conversion Election Notice\") that describes the Conversion Event. 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Notwithstanding anything herein to the contrary, shares of Preferred Stock shall be convertible into shares of Common Stock immediately following the Original Issue Date to the extent that a Holder then holds outstanding securities convertible into Common Stock, which shares of Common Stock are reserved for issuance by the Corporation, and such Holder elects, in its sole discretion, to use such reserved shares for the issuance of shares of Common Stock under the Preferred Stock rather than for issuance under such outstanding securities.", "size": 2, "hash": "2032fedd4fac4dfd924422e03fa55b12", "id": 10}], "next_curs": "CmESW2oVc35sYXdpbnNpZGVyY29udHJhY3Rzcj0LEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IiFob2xkZXJzLWNvbnZlcnNpb24tcmlnaHQjMDAwMDAwMGEMogECZW4YACAA", "clause": {"children": [["fractional-shares", "Fractional Shares"], ["conversion-price", "Conversion Price"], ["holders-conversion-limitations", "Holder\u2019s Conversion Limitations"], ["mechanics-of-conversion", "Mechanics of Conversion"], ["reservation-of-shares-issuable-upon-conversion", "Reservation of Shares Issuable Upon Conversion"]], "title": "Holder\u2019s Conversion Right", "size": 97, "parents": [["conversion", "Conversion"], ["miscellaneous", "Miscellaneous"], ["conversion-of-preferred-shares", "Conversion of Preferred Shares"], ["independent-nature-of-buyers-obligations-and-rights", "Independent Nature of Buyers\u2019 Obligations and Rights"], ["counterparts", "Counterparts"]], "id": "holders-conversion-right", "related": [["holders-conversion-rights", "Holders Conversion Rights", "Holders Conversion Rights"], ["conversion-right", "Conversion Right", "Conversion Right"], ["conversion-rights", "Conversion Rights", "Conversion Rights"], ["exercise-of-conversion-right", "Exercise of Conversion Right", "Exercise of Conversion Right"], ["no-conversion-rights", "No Conversion Rights", "No Conversion Rights"]], "related_snippets": [], "updated": "2026-03-21T05:46:19+00:00", "also_ask": ["What are the essential terms to include to protect both parties in a Holder\u2019s Conversion Right clause?", "How can the conversion ratio or price be strategically negotiated to benefit the client?", "What are the most common legal pitfalls or ambiguities that could render a Holder\u2019s Conversion Right unenforceable?", "How does this clause compare to standard market practices or similar conversion rights in other instruments?", "What factors do courts consider when determining the enforceability of a Holder\u2019s Conversion Right in disputes?"], "drafting_tip": null, "explanation": "The Holder\u2019s Conversion Right clause grants the holder of a security, such as a convertible note or preferred stock, the ability to convert their holdings into another form of security, typically common stock, under specified conditions. This right usually outlines the conversion ratio, timing, and any procedural requirements the holder must follow to exercise the conversion. By providing a clear mechanism for conversion, the clause offers flexibility to the holder and can facilitate future investment or exit strategies, while also ensuring both parties understand the terms under which conversion may occur."}, "json": true, "cursor": ""}}