{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "the-holder", "type": "clause", "offset": [0, 10]}, {"key": "the-right", "type": "clause", "offset": [22, 31]}, {"key": "the-obligation", "type": "clause", "offset": [41, 55]}, {"key": "to-convert", "type": "clause", "offset": [57, 67]}, {"key": "aggregate-outstanding-principal-amount", "type": "definition", "offset": [99, 137]}, {"key": "this-note", "type": "clause", "offset": [141, 150]}, {"key": "fees-due", "type": "clause", "offset": [179, 187]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [201, 223]}, {"key": "the-terms-and-conditions", "type": "definition", "offset": [235, 259]}, {"key": "article-iii", "type": "clause", "offset": [278, 289]}, {"key": "such-right", "type": "definition", "offset": [315, 325]}, {"key": "to-the-borrower", "type": "clause", "offset": [338, 353]}, {"key": "notice-of-conversion", "type": "clause", "offset": [367, 387]}, {"key": "prior-to-the", "type": "clause", "offset": [414, 426]}], "snippet": "The Holder shall have the right, but not the obligation, to convert all or any portion of the then aggregate outstanding principal amount of this Note, together with interest and fees due hereon, into shares of Common Stock subject to the terms and conditions set forth in this Article III. The Holder may exercise such right by delivery to the Borrower of a written notice of conversion not less than one (1) day prior to the date upon which such conversion shall occur.", "size": 125, "samples": [{"hash": "fX0mfzeEaCH", "uri": "/contracts/fX0mfzeEaCH#holders-conversion-rights", "label": "Convertible Term Note (Trimedia Entertainment Group Inc)", "score": 19.0, "published": true}, {"hash": "3BfazhtdhCC", "uri": "/contracts/3BfazhtdhCC#holders-conversion-rights", "label": "Convertible Term Note (Trimedia Entertainment Group Inc)", "score": 19.0, "published": true}, {"hash": "db7z7jXWrqf", "uri": "/contracts/db7z7jXWrqf#holders-conversion-rights", "label": "Secured Convertible Term Note (Pacific Biometrics Inc)", "score": 18.0, "published": true}], "hash": "aea4ff8acf0871ab96b581e7360280c2", "id": 1}, {"snippet_links": [{"key": "section-32", "type": "definition", "offset": [11, 22]}, {"key": "the-holder", "type": "clause", "offset": [24, 34]}, {"key": "the-right", "type": "clause", "offset": [46, 55]}, {"key": "the-obligation", "type": "clause", "offset": [65, 79]}, {"key": "at-all-times", "type": "definition", "offset": [80, 92]}, {"key": "to-convert", "type": "clause", "offset": [94, 104]}, {"key": "aggregate-outstanding-principal-amount", "type": "definition", "offset": [136, 174]}, {"key": "this-note", "type": "clause", "offset": [178, 187]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [194, 216]}, {"key": "the-terms-and-conditions", "type": "definition", "offset": [229, 253]}, {"key": "article-iii", "type": "clause", "offset": [272, 283]}, {"key": "rate-of", "type": "clause", "offset": [291, 298]}, {"key": "fixed-conversion-price", "type": "definition", "offset": [333, 355]}, {"key": "the-subscription-agreement", "type": "clause", "offset": [408, 434]}, {"key": "such-right", "type": "definition", "offset": [460, 470]}, {"key": "to-the-borrower", "type": "clause", "offset": [483, 498]}, {"key": "section-33", "type": "clause", "offset": [545, 556]}, {"key": "after-the-occurrence-of-an-event-of-default", "type": "clause", "offset": [558, 601]}, {"key": "the-fixed", "type": "clause", "offset": [603, 612]}, {"key": "lesser-of", "type": "definition", "offset": [643, 652]}, {"key": "closing-bid-prices", "type": "definition", "offset": [709, 727]}, {"key": "the-common-stock", "type": "clause", "offset": [731, 747]}, {"key": "prior-to-a", "type": "clause", "offset": [774, 784]}, {"key": "conversion-date", "type": "definition", "offset": [785, 800]}], "snippet": "Subject to Section 3.2, the Holder shall have the right, but not the obligation at all times, to convert all or any portion of the then aggregate outstanding Principal Amount of this Note, into shares of Common Stock, subject to the terms and conditions set forth in this Article III at the rate of $0.25 per share of Common Stock (\u201cFixed Conversion Price\u201d) as same may be adjusted pursuant to this Note and the Subscription Agreement. The Holder may exercise such right by delivery to the Borrower of a written Notice of Conversion pursuant to Section 3.3. After the occurrence of an Event of Default, the Fixed Conversion Price shall be the lesser of the Fixed Conversion Price or 75% of the average of the closing bid prices of the Common Stock for the five trading days prior to a Conversion Date.", "size": 8, "samples": [{"hash": "jv1VxGmBikD", "uri": "/contracts/jv1VxGmBikD#holders-conversion-rights", "label": "Secured Convertible Promissory Note (China Biopharma, Inc.)", "score": 19.0, "published": true}, {"hash": "fqTODJFZ7Aj", "uri": "/contracts/fqTODJFZ7Aj#holders-conversion-rights", "label": "Secured Convertible Promissory Note (Inrob Tech Ltd.)", "score": 19.0, "published": true}, {"hash": "coht6FjjzH7", "uri": "/contracts/coht6FjjzH7#holders-conversion-rights", "label": "Secured Convertible Promissory Note (Inrob Tech Ltd.)", "score": 19.0, "published": true}], "hash": "ace372ef5133af165ab59a8c304ce44b", "id": 4}, {"snippet_links": [{"key": "section-32", "type": "definition", "offset": [11, 22]}, {"key": "conversion-provisions", "type": "definition", "offset": [41, 62]}, {"key": "the-holder", "type": "clause", "offset": [72, 82]}, {"key": "the-right", "type": "clause", "offset": [94, 103]}, {"key": "the-obligation", "type": "clause", "offset": [113, 127]}, {"key": "to-convert", "type": "clause", "offset": [129, 139]}, {"key": "aggregate-outstanding-principal-amount", "type": "definition", "offset": [171, 209]}, {"key": "this-note", "type": "clause", "offset": [213, 222]}, {"key": "fees-due", "type": "clause", "offset": [251, 259]}, {"key": "the-subscription-agreement", "type": "clause", "offset": [294, 320]}, {"key": "the-transaction-documents", "type": "clause", "offset": [325, 350]}, {"key": "not-limited", "type": "clause", "offset": [366, 377]}, {"key": "liquidated-damages", "type": "definition", "offset": [381, 399]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [406, 428]}, {"key": "the-terms-and-conditions", "type": "definition", "offset": [441, 465]}, {"key": "article-iii", "type": "clause", "offset": [484, 495]}, {"key": "rate-of", "type": "clause", "offset": [503, 510]}, {"key": "fixed-conversion-price", "type": "definition", "offset": [546, 568]}, {"key": "such-right", "type": "definition", "offset": [672, 682]}, {"key": "to-the-borrower", "type": "clause", "offset": [695, 710]}, {"key": "section-33", "type": "clause", "offset": [757, 768]}], "snippet": "Subject to Section 3.2 and the mandatory conversion provisions therein, the Holder shall have the right, but not the obligation, to convert all or any portion of the then aggregate outstanding Principal Amount of this Note, together with interest and fees due hereon, and any sum arising under the Subscription Agreement and the Transaction Documents, including but not limited to Liquidated Damages, into shares of Common Stock, subject to the terms and conditions set forth in this Article III at the rate of $0.005 per share of Common Stock (\u201cFixed Conversion Price\u201d as same may be adjusted pursuant to this Note and the Subscription Agreement. The Holder may exercise such right by delivery to the Borrower of a written Notice of Conversion pursuant to Section 3.3.", "size": 12, "samples": [{"hash": "bxcfSQ8uO0b", "uri": "/contracts/bxcfSQ8uO0b#holders-conversion-rights", "label": "Convertible Note (Alpha Solarco Inc)", "score": 19.0, "published": true}, {"hash": "831fl8VfcR2", "uri": "/contracts/831fl8VfcR2#holders-conversion-rights", "label": "Convertible Note (Innovative Food Holdings Inc)", "score": 19.0, "published": true}], "hash": "8385897c48377d9bc249c2a935b86bd6", "id": 2}, {"snippet_links": [{"key": "section-22", "type": "clause", "offset": [11, 22]}, {"key": "the-holder", "type": "clause", "offset": [24, 34]}, {"key": "the-right", "type": "clause", "offset": [46, 55]}, {"key": "the-obligation", "type": "clause", "offset": [65, 79]}, {"key": "at-any-time", "type": "clause", "offset": [80, 91]}, {"key": "issuance-of-this-note", "type": "clause", "offset": [109, 130]}, {"key": "to-convert", "type": "clause", "offset": [132, 142]}, {"key": "aggregate-outstanding-principal-amount", "type": "definition", "offset": [174, 212]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [232, 254]}, {"key": "the-terms-and-conditions", "type": "definition", "offset": [267, 291]}, {"key": "article-ii", "type": "definition", "offset": [310, 320]}, {"key": "of-the-borrower", "type": "clause", "offset": [375, 390]}, {"key": "the-closing", "type": "definition", "offset": [502, 513]}, {"key": "of-the-company", "type": "clause", "offset": [518, 532]}, {"key": "trading-days", "type": "definition", "offset": [568, 580]}, {"key": "prior-to-the", "type": "clause", "offset": [593, 605]}, {"key": "date-of-conversion", "type": "definition", "offset": [606, 624]}, {"key": "such-right", "type": "definition", "offset": [650, 660]}, {"key": "to-the-borrower", "type": "clause", "offset": [673, 688]}, {"key": "section-33", "type": "clause", "offset": [735, 746]}], "snippet": "Subject to Section 2.2, the Holder shall have the right, but not the obligation at any time from the date of issuance of this Note, to convert all or any portion of the then aggregate outstanding Principal Amount of this Note, into shares of Common Stock, subject to the terms and conditions set forth in this Article II at a forty percent (40%) discount to the market price of the Borrower\u2019s Common Stock or $.50 per share, whichever is lower. The \u201cmarket price\u201d shall be determined at the average of the closing bid of the Company\u2019s Common Stock for the twenty (20) trading days immediately prior to the date of conversion. The Holder may exercise such right by delivery to the Borrower of a written Notice of Conversion pursuant to Section 3.3.", "size": 11, "samples": [{"hash": "jo0JkNtk7Fr", "uri": "/contracts/jo0JkNtk7Fr#holders-conversion-rights", "label": "Subordinated Convertible Note (Accident Prevention Plus Inc)", "score": 19.0, "published": true}, {"hash": "i39IrFUATT7", "uri": "/contracts/i39IrFUATT7#holders-conversion-rights", "label": "Subordinated Convertible Note (Accident Prevention Plus Inc)", "score": 19.0, "published": true}, {"hash": "aTyQBhiRKW4", "uri": "/contracts/aTyQBhiRKW4#holders-conversion-rights", "label": "Subordinated Convertible Note (Accident Prevention Plus Inc)", "score": 19.0, "published": true}], "hash": "d8ebb44ecfe6e65de80f16c79739eb82", "id": 3}, {"snippet_links": [{"key": "section-32", "type": "definition", "offset": [11, 22]}, {"key": "conversion-provisions", "type": "definition", "offset": [60, 81]}, {"key": "the-holder", "type": "clause", "offset": [91, 101]}, {"key": "the-right", "type": "clause", "offset": [113, 122]}, {"key": "the-obligation", "type": "clause", "offset": [132, 146]}, {"key": "to-convert", "type": "clause", "offset": [148, 158]}, {"key": "aggregate-outstanding-principal-amount", "type": "definition", "offset": [190, 228]}, {"key": "this-note", "type": "clause", "offset": [232, 241]}, {"key": "fees-due", "type": "clause", "offset": [270, 278]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [292, 314]}, {"key": "the-terms-and-conditions", "type": "definition", "offset": [327, 351]}, {"key": "article-iii", "type": "clause", "offset": [370, 381]}, {"key": "such-right", "type": "definition", "offset": [407, 417]}, {"key": "to-the-borrower", "type": "clause", "offset": [430, 445]}, {"key": "section-33", "type": "clause", "offset": [492, 503]}], "snippet": "Subject to Section 3.2 and Section 2.1(b) and the mandatory conversion provisions therein, the Holder shall have the right, but not the obligation, to convert all or any portion of the then aggregate outstanding Principal Amount of this Note, together with interest and fees due hereon, into shares of Common Stock, subject to the terms and conditions set forth in this Article III. The Holder may exercise such right by delivery to the Borrower of a written Notice of Conversion pursuant to Section 3.3.", "size": 8, "samples": [{"hash": "76TGED9wIPh", "uri": "/contracts/76TGED9wIPh#holders-conversion-rights", "label": "Convertible Note (Diametrics Medical Inc)", "score": 18.0, "published": true}], "hash": "b944362d1b8b561e75464bafb281161c", "id": 5}, {"snippet_links": [{"key": "the-common-stock", "type": "clause", "offset": [24, 40]}, {"key": "fixed-conversion-price", "type": "definition", "offset": [61, 83]}, {"key": "the-registration-statement", "type": "clause", "offset": [89, 115]}, {"key": "required-by", "type": "definition", "offset": [116, 127]}, {"key": "section-10", "type": "definition", "offset": [128, 138]}, {"key": "the-purchase-agreement", "type": "clause", "offset": [142, 164]}, {"key": "securities-exchange-commission", "type": "definition", "offset": [200, 230]}, {"key": "the-holder", "type": "clause", "offset": [232, 242]}, {"key": "the-right", "type": "clause", "offset": [254, 263]}, {"key": "to-convert", "type": "clause", "offset": [288, 298]}, {"key": "principal-portion", "type": "clause", "offset": [303, 320]}, {"key": "due-and-payable", "type": "clause", "offset": [350, 365]}, {"key": "stock-of-the-borrower", "type": "clause", "offset": [417, 438]}, {"key": "issuance-of-this-note", "type": "clause", "offset": [475, 496]}], "snippet": "If the closing price of the Common Stock is greater than the Fixed Conversion Price, and the registration statement required by Section 10 of the Purchase Agreement has been declared effective by the Securities Exchange Commission, the Holder shall have the right, but not the obligation to convert the principal portion of this Note and/or interest due and payable into fully paid and nonassessable shares of common stock of the Borrower as such stock exists on the date of issuance of this Note.", "size": 5, "samples": [{"hash": "kKqVDwdgzJA", "uri": "/contracts/kKqVDwdgzJA#holders-conversion-rights", "label": "Securities Purchase Agreement (Nestor Inc)", "score": 18.0, "published": true}, {"hash": "l1xNDiHlOI", "uri": "/contracts/l1xNDiHlOI#holders-conversion-rights", "label": "Convertible Note (Nestor Inc)", "score": 16.0, "published": true}, {"hash": "81nbXPiR2Ac", "uri": "/contracts/81nbXPiR2Ac#holders-conversion-rights", "label": "Convertible Note (Nestor Inc)", "score": 16.0, "published": true}], "hash": "c1f76452ac718601b157833f6c55bef8", "id": 6}, {"snippet_links": [{"key": "terms-of", "type": "definition", "offset": [15, 23]}, {"key": "article-iii", "type": "clause", "offset": [29, 40]}, {"key": "the-holder", "type": "clause", "offset": [42, 52]}, {"key": "the-right", "type": "clause", "offset": [64, 73]}, {"key": "the-obligation", "type": "clause", "offset": [83, 97]}, {"key": "at-any-time", "type": "clause", "offset": [99, 110]}, {"key": "beginning-on", "type": "clause", "offset": [111, 123]}, {"key": "maturity-date", "type": "clause", "offset": [146, 159]}, {"key": "prior-to-a", "type": "clause", "offset": [183, 193]}, {"key": "prepayment-date", "type": "clause", "offset": [194, 209]}, {"key": "during-an-event-of-default", "type": "clause", "offset": [225, 251]}, {"key": "article-v", "type": "definition", "offset": [267, 276]}, {"key": "to-convert", "type": "clause", "offset": [279, 289]}, {"key": "outstanding-principal-amount", "type": "definition", "offset": [316, 344]}, {"key": "volume-restriction", "type": "clause", "offset": [361, 379]}, {"key": "section-33", "type": "clause", "offset": [393, 404]}, {"key": "due-and-payable", "type": "clause", "offset": [446, 461]}, {"key": "fully-paid-and-nonassessable-shares", "type": "clause", "offset": [467, 502]}, {"key": "conversion-price", "type": "clause", "offset": [585, 601]}, {"key": "section-32", "type": "definition", "offset": [615, 626]}, {"key": "common-stock-to-be-issued", "type": "clause", "offset": [667, 692]}, {"key": "conversion-shares", "type": "clause", "offset": [745, 762]}], "snippet": "Subject to the terms of this Article III, the Holder shall have the right, but not the obligation, at any time beginning on May28, 2004 until the Maturity Date, including at any time prior to a Prepayment Date, or thereafter during an Event of Default (as defined in Article V), to convert all or any portion of the outstanding Principal Amount (subject to the volume restriction set forth in Section 3.3 hereof) and/or accrued interest and fees due and payable into fully paid and nonassessable shares of Borrower\u2019s common stock, as currently constituted (the \u201cCommon Stock\u201d), at the conversion price set forth in Section 3.2 (the \u201cConversion Price\u201d). The shares of Common Stock to be issued upon such conversion are herein referred to as the \u201cConversion Shares.\u201d", "size": 4, "samples": [{"hash": "hZEqd0No6XX", "uri": "/contracts/hZEqd0No6XX#holders-conversion-rights", "label": "Secured Minimum Borrowing Convertible Note (Digital Angel Corp)", "score": 18.0, "published": true}, {"hash": "3Zao5kPPJ4e", "uri": "/contracts/3Zao5kPPJ4e#holders-conversion-rights", "label": "Secured Revolving Convertible Note (Digital Angel Corp)", "score": 18.0, "published": true}], "hash": "de405a3e7a4ec3a5fdcc319876a5293a", "id": 7}, {"snippet_links": [{"key": "the-holder", "type": "clause", "offset": [0, 10]}, {"key": "the-right", "type": "clause", "offset": [22, 31]}, {"key": "at-all-times", "type": "definition", "offset": [32, 44]}, {"key": "the-obligation", "type": "clause", "offset": [54, 68]}, {"key": "to-convert", "type": "clause", "offset": [70, 80]}, {"key": "aggregate-outstanding-principal-amount", "type": "definition", "offset": [112, 150]}, {"key": "this-note", "type": "clause", "offset": [154, 163]}, {"key": "accrued-interest", "type": "clause", "offset": [169, 185]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [192, 214]}, {"key": "the-terms-and-conditions", "type": "definition", "offset": [253, 277]}, {"key": "article-ii", "type": "definition", "offset": [296, 306]}, {"key": "rate-of", "type": "clause", "offset": [314, 321]}, {"key": "fixed-conversion-price", "type": "definition", "offset": [356, 378]}, {"key": "the-subscription-agreement", "type": "clause", "offset": [431, 457]}, {"key": "such-right", "type": "definition", "offset": [483, 493]}, {"key": "to-the-borrower", "type": "clause", "offset": [506, 521]}, {"key": "section-32", "type": "definition", "offset": [568, 579]}, {"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [581, 621]}, {"key": "in-no-event-shall", "type": "clause", "offset": [663, 680]}, {"key": "to-register", "type": "clause", "offset": [706, 717]}, {"key": "stock-issuable", "type": "clause", "offset": [739, 753]}, {"key": "conversion-of", "type": "clause", "offset": [763, 776]}, {"key": "accrued-and-unpaid-interest", "type": "definition", "offset": [777, 804]}, {"key": "prior-to-the", "type": "clause", "offset": [805, 817]}, {"key": "conversion-right", "type": "definition", "offset": [841, 857]}, {"key": "in-the-event", "type": "clause", "offset": [981, 993]}, {"key": "written-guidance", "type": "definition", "offset": [1018, 1034]}, {"key": "applicability-of", "type": "clause", "offset": [1053, 1069]}, {"key": "the-securities-and-exchange-commission", "type": "clause", "offset": [1070, 1108]}, {"key": "written-comments", "type": "definition", "offset": [1131, 1147]}, {"key": "sec-staff", "type": "definition", "offset": [1180, 1189]}, {"key": "in-connection-with", "type": "clause", "offset": [1206, 1224]}, {"key": "review-of", "type": "clause", "offset": [1229, 1238]}, {"key": "any-registration-statement", "type": "definition", "offset": [1239, 1265]}, {"key": "sec-guidance", "type": "definition", "offset": [1285, 1297]}, {"key": "does-not-permit", "type": "clause", "offset": [1300, 1315]}, {"key": "initial-registration-statement", "type": "definition", "offset": [1331, 1361]}, {"key": "the-conversion-shares", "type": "clause", "offset": [1419, 1440]}, {"key": "borrower-will", "type": "clause", "offset": [1451, 1464]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [1465, 1492]}, {"key": "to-file", "type": "definition", "offset": [1493, 1500]}, {"key": "additional-registration-statements", "type": "definition", "offset": [1506, 1540]}, {"key": "subsequent-registration-statements", "type": "definition", "offset": [1547, 1581]}, {"key": "related-to", "type": "clause", "offset": [1716, 1726]}, {"key": "limitation-on", "type": "definition", "offset": [1783, 1796]}, {"key": "number-of-conversion-shares", "type": "clause", "offset": [1894, 1921]}, {"key": "pro-rata-basis", "type": "definition", "offset": [1991, 2005]}, {"key": "note-holders", "type": "definition", "offset": [2016, 2028]}, {"key": "based-on", "type": "clause", "offset": [2029, 2037]}, {"key": "total-number-of", "type": "definition", "offset": [2042, 2057]}], "snippet": "The Holder shall have the right at all times, but not the obligation, to convert all or any portion of the then aggregate outstanding Principal Amount of this Note plus accrued interest, into shares of Common Stock (the \u201cConversion Shares\u201d), subject to the terms and conditions set forth in this Article II at the rate of $0.15 per share of Common Stock (\u201cFixed Conversion Price\u201d) as same may be adjusted pursuant to this Note and the Subscription Agreement. The Holder may exercise such right by delivery to the Borrower of a written Notice of Conversion pursuant to Section 3.2. Notwithstanding anything to the contrary set forth in the Subscription Agreement, in no event shall the Borrower be required to register any shares of common stock issuable upon the conversion of accrued and unpaid interest prior to the Holder exercising such conversion right as set forth in the preceding paragraph. Notwithstanding anything to the contrary set forth in the Subscription Agreement, in the event that publicly-available written guidance, rules of general applicability of the Securities and Exchange Commission (the \u201cSEC\u201d) staff, or written comments, requirements or request of the SEC staff to the Borrower in connection with the review of any registration statement, in any case (the \"SEC Guidance\") does not permit the Borrower\u2019s initial registration statement (the \u201cInitial Registration Statement\u201d) to include all of the Conversion Shares, then the Borrower will use reasonable best efforts to file such additional registration statements (the \"Subsequent Registration Statements\") at the earliest practicable date on which the Borrower is permitted by SEC Guidance to file such Subsequent Registration Statements related to the Conversion Shares. If any SEC Guidance sets forth a limitation on the number of the Conversion Shares to be registered on a particular registration statement, the number of Conversion Shares to be registered on such registration statement will be reduced on a pro rata basis among all Note Holders based on the total number of unregistered Conversion Shares.", "size": 4, "samples": [{"hash": "hAek90zdtXN", "uri": "/contracts/hAek90zdtXN#holders-conversion-rights", "label": "5% Senior Convertible Note (Lantis Laser Inc.)", "score": 18.0, "published": true}], "hash": "085b72ca680d4eadf8e5ce05e006243c", "id": 8}, {"snippet_links": [{"key": "the-holder", "type": "clause", "offset": [0, 10]}, {"key": "the-right", "type": "clause", "offset": [22, 31]}, {"key": "the-obligation", "type": "clause", "offset": [41, 55]}, {"key": "to-convert", "type": "clause", "offset": [57, 67]}, {"key": "aggregate-outstanding-principal-amount", "type": "definition", "offset": [99, 137]}, {"key": "fees-due", "type": "clause", "offset": [179, 187]}, {"key": "the-terms-and-conditions", "type": "definition", "offset": [235, 259]}, {"key": "article-iii", "type": "clause", "offset": [278, 289]}, {"key": "contained-in", "type": "definition", "offset": [340, 352]}, {"key": "the-warrant", "type": "clause", "offset": [370, 381]}, {"key": "issued-to", "type": "definition", "offset": [382, 391]}, {"key": "in-connection-with", "type": "clause", "offset": [403, 421]}, {"key": "sale-of", "type": "clause", "offset": [441, 448]}, {"key": "terms-of-the-purchase-agreement", "type": "clause", "offset": [475, 506]}, {"key": "common-stock-to-be", "type": "clause", "offset": [542, 560]}, {"key": "conversion-of-this-note", "type": "clause", "offset": [623, 646]}, {"key": "warrant-coverage", "type": "clause", "offset": [662, 678]}, {"key": "other-increases", "type": "clause", "offset": [682, 697]}, {"key": "any-registration-statement", "type": "definition", "offset": [739, 765]}, {"key": "the-securities-and-exchange-commission", "type": "clause", "offset": [771, 809]}, {"key": "maximum-coverage", "type": "definition", "offset": [816, 832]}, {"key": "with-respect-to", "type": "clause", "offset": [835, 850]}, {"key": "distribution-of-the-shares", "type": "clause", "offset": [855, 881]}, {"key": "by-holder", "type": "clause", "offset": [907, 916]}, {"key": "maximum-limit", "type": "clause", "offset": [985, 998]}, {"key": "shares-of-common-stock-outstanding", "type": "definition", "offset": [1075, 1109]}, {"key": "date-of-this-note", "type": "definition", "offset": [1117, 1134]}, {"key": "requisite-shareholder-approval", "type": "clause", "offset": [1157, 1187]}, {"key": "such-right", "type": "definition", "offset": [1213, 1223]}, {"key": "to-the-borrower", "type": "clause", "offset": [1236, 1251]}, {"key": "notice-of-conversion", "type": "clause", "offset": [1265, 1285]}, {"key": "prior-to-the", "type": "clause", "offset": [1312, 1324]}, {"key": "conversion-date", "type": "definition", "offset": [1427, 1442]}], "snippet": "The Holder shall have the right, but not the obligation, to convert all or any portion of the then aggregate outstanding principal amount of this Note, together with interest and fees due hereon, into shares of Common Stock subject to the terms and conditions set forth in this Article III; provided, however, that notwithstanding anything contained in this Note, or in the Warrant issued to the Holder in connection with the closing of the sale of this Note pursuant to the terms of the Purchase Agreement, the aggregate number of shares of Common Stock to be issuable (i) under the Warrant and (ii) upon the repayment or conversion of this Note, including any warrant coverage or other increases granted as a result of delayed filing of any registration statement with the Securities and Exchange Commission (the \"Maximum Coverage\") with respect to the distribution of the shares of Common Stock acquired by Holder pursuant to subprovisions (i) and (ii) above, shall be subject to a maximum limit such that the Maximum Coverage can not equal or exceed 20% of the number of shares of Common Stock outstanding on the date of this Note without obtaining the requisite shareholder approval. The Holder may exercise such right by delivery to the Borrower of a written notice of conversion not less than one (1) day prior to the date upon which such conversion shall occur. The date upon which such conversion shall occur is (the \"Conversion Date\").", "size": 3, "samples": [{"hash": "czBuTL72raK", "uri": "/contracts/czBuTL72raK#holders-conversion-rights", "label": "Secured Convertible Term Note (Dyntek Inc)", "score": 16.0, "published": true}, {"hash": "7W46VTvxajM", "uri": "/contracts/7W46VTvxajM#holders-conversion-rights", "label": "Secured Convertible Term Note (Dyntek Inc)", "score": 16.0, "published": true}, {"hash": "6dE9ZW9khTb", "uri": "/contracts/6dE9ZW9khTb#holders-conversion-rights", "label": "Secured Convertible Term Note (Dyntek Inc)", "score": 16.0, "published": true}], "hash": "e5595c1127e28093fa1fdb23eaace140", "id": 9}, {"snippet_links": [{"key": "this-note", "type": "clause", "offset": [33, 42]}, {"key": "accrued-interest", "type": "clause", "offset": [54, 70]}, {"key": "the-holder", "type": "clause", "offset": [72, 82]}, {"key": "the-right", "type": "clause", "offset": [94, 103]}, {"key": "the-obligation", "type": "clause", "offset": [113, 127]}, {"key": "to-convert", "type": "clause", "offset": [129, 139]}, {"key": "aggregate-outstanding-principal-amount", "type": "definition", "offset": [171, 209]}, {"key": "fees-due", "type": "clause", "offset": [274, 282]}, {"key": "shares-of-common-stock", "type": "clause", "offset": [297, 319]}, {"key": "the-terms-and-conditions", "type": "definition", "offset": [331, 355]}, {"key": "article-iii", "type": "clause", "offset": [374, 385]}, {"key": "such-right", "type": "definition", "offset": [428, 438]}, {"key": "to-the-borrower", "type": "clause", "offset": [451, 466]}, {"key": "notice-of-conversion", "type": "clause", "offset": [504, 524]}, {"key": "form-of", "type": "definition", "offset": [532, 539]}, {"key": "exhibit-a", "type": "clause", "offset": [540, 549]}, {"key": "prior-to-the", "type": "clause", "offset": [613, 625]}], "snippet": "While any amounts are owed under this Note, including accrued interest, the Holder shall have the right, but not the obligation, to convert all or any portion of the then aggregate outstanding principal amount of this Note, together with all accrued but unpaid interest and fees due thereon, into shares of Common Stock subject to the terms and conditions set forth in this Article III (a \"CONVERSION\"). The Holder may exercise such right by delivery to the Borrower of a written, executed and completed notice of conversion in the form of Exhibit A hereto (a \"NOTICE OF CONVERSION\") not less than three (3) days prior to the date upon which such conversion shall occur.", "size": 3, "samples": [{"hash": "xyuZQ7hY5r", "uri": "/contracts/xyuZQ7hY5r#holders-conversion-rights", "label": "Convertible Term Note (Tidel Technologies Inc)", "score": 18.0, "published": true}, {"hash": "43bJ3mqfxZ4", "uri": "/contracts/43bJ3mqfxZ4#holders-conversion-rights", "label": "Convertible Term Note (Tidel Technologies Inc)", "score": 18.0, "published": true}, {"hash": "230jsashLSR", "uri": "/contracts/230jsashLSR#holders-conversion-rights", "label": "Convertible Term Note (Tidel Technologies Inc)", "score": 18.0, "published": true}], "hash": "feb98b507ab2b24655a6bd47b3e3aeff", "id": 10}], "next_curs": "CmISXGoVc35sYXdpbnNpZGVyY29udHJhY3Rzcj4LEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IiJob2xkZXJzLWNvbnZlcnNpb24tcmlnaHRzIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"parents": [["conversion-rights", "Conversion Rights"], ["minimum-monthly-principal-payments", "Minimum  Monthly  Principal  Payments"], ["optional-redemption-in-cash", "Optional Redemption in Cash"], ["interest-rate", "Interest Rate"], ["miscellaneous", "Miscellaneous"]], "children": [["stock-splits-combinations-and-dividends", "Stock Splits, Combinations and Dividends"], ["share-issuances", "Share Issuances"], ["optional-conversion", "Optional Conversion"], ["reservation-of-shares", "Reservation of Shares"], ["conversion-limitation", "Conversion Limitation"]], "size": 335, "title": "Holders Conversion Rights", "id": "holders-conversion-rights", "related": [["conversion-rights", "Conversion Rights", "Conversion Rights"], ["conversion-right", "Conversion Right", "Conversion Right"], ["exercise-of-conversion-right", "Exercise of Conversion Right", "Exercise of Conversion Right"], ["no-conversion-rights", "No Conversion Rights", "No Conversion Rights"], ["mechanics-of-holders-conversion", "Mechanics of Holder\u2019s Conversion", "Mechanics of Holder\u2019s Conversion"]], "related_snippets": [], "updated": "2025-07-07T12:37:53+00:00", "also_ask": ["What are the minimum protections the holder should demand in conversion mechanics?", "How can conversion price adjustments be strategically negotiated to benefit the holder?", "What are the most common pitfalls or ambiguities in drafting conversion rights?", "How do conversion rights in this clause compare to market standards or similar instruments?", "What factors most often determine enforceability of conversion rights in court?"], "drafting_tip": "Specify conversion triggers, outline calculation methods, and define notice procedures to ensure clarity, prevent disputes, and facilitate smooth execution of conversion rights.", "explanation": "The Holder's Conversion Rights 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 equity, typically common shares, under specified conditions. This clause outlines the process for conversion, including the conversion ratio, timing, and any required notices or procedures. By providing a clear mechanism for conversion, the clause ensures that holders can participate in the equity of the company, often at advantageous terms, and helps facilitate future investment rounds or liquidity events."}, "json": true, "cursor": ""}}