Common use of Holder’s Option Clause in Contracts

Holder’s Option. 4.1 The Holder shall, at any time in the period commencing on the day falling 10 Business Days (exclusive) before the applicable Stock Redemption Date and terminating on the fifth Business Day prior to the expiration of the applicable Extended Redemption Period, notify the Company in writing that the Holder (i) if the Company elects to Convert or is deemed to have elected to have Converted the relevant portion of the Note, agrees to the Company’s decision or deemed decision to Convert the portion of the Note due to be redeemed to the Holder in accordance with the terms set forth in the Conversion Notice (Holder Conversion Notice)or (ii) intends to cancel the portion of the Note due to be Converted ( Holder Cancellation Notice) which cancellation shall be irrevocable and with immediate effect from receipt of the Notice by the Company and/or CVSL resulting in the immediate cancellation of the portion of the Note due to be redeemed and no shares of Common Stock shall be issuable upon the portion of the Note that has been cancelled and the principal amount of the Note shall be reduced by the cancelled amount. 4.2 In the event that the Holder does not issue a Holder Conversion Notice in accordance with clause 4.1, he shall be deemed to have issued a Holder Cancellation Notice and the portion of the Note due to be redeemed by the Holder on or prior to the expiration of such Extended Redemption Period shall automatically be cancelled with immediate effect, the principal amount of the Note shall be reduced by the cancelled amount and no shares of Common Stock shall be issuable upon the portion of the Note that has been cancelled.