Redemption Automatic Conversion Sample Clauses
The 'Redemption; Automatic Conversion' clause defines the conditions under which certain securities, such as preferred shares or convertible notes, can be redeemed by the issuer or automatically converted into another class of securities, typically common stock. This clause specifies the triggers for redemption or conversion, such as reaching a maturity date, a qualified financing event, or a change of control, and outlines the process and terms for executing these actions. Its core practical function is to provide clarity and predictability for both issuers and investors regarding how and when securities may be redeemed or converted, thereby managing expectations and reducing potential disputes.
Redemption Automatic Conversion. (a) The Series B Preferred shall be redeemed in whole or in part if and to the extent required by the provisions of Section 4(m) hereof, and in accordance with such provisions.
(b) At least 10 days prior to the Redemption Date, written notice (the "Redemption Notice") shall be mailed, first class postage prepaid, by the Corporation to each holder of record of the Series B Preferred, at the address last shown on the records of the Corporation for such holder, notifying such holder of the redemption which is to be effected, specifying the percentage of shares which is to be redeemed from such holder, the Redemption Date, the Redemption Price or, as the case may be, the Special Redemption Price, the place at which payment may be obtained and calling upon each such holder to surrender to the Corporation, in the manner and at the place designated, a certificate or certificates representing the number of shares to be redeemed calculated by multiplying the specified percentage of shares to be redeemed by the total number of shares of Series B Preferred held by such holder. On or after the Redemption Date, each holder of Series B Preferred shall surrender to the Corporation the certificate or certificates representing the specified percentage of shares of Series B Preferred owned by such holder as of the Redemption Date, in the manner and at the place designated in the Redemption Notice, and thereupon the Redemption Price or Special Redemption Price of such shares shall be payable to the order of the person whose name appears on such certificate or certificates as the owner thereof and each surrendered certificate shall be cancelled. In the event less than all the shares represented by any such certificate are redeemed, a new certificate shall be issued representing the unredeemed shares.
(c) From and after the Redemption Date, unless there shall have been a default in payment of the Redemption Price, all rights of the holders of shares which have been redeemed (except the right to receive the Redemption Price without interest upon surrender of the certificate or certificates representing such shares) shall cease with respect to such shares, and such shares shall not thereafter be transferred on the books of the Corporation or be deemed to be outstanding for any purpose whatsoever. If less than all of the Series B Preferred shares are to be redeemed, the Corporation shall select shares so to be redeemed as nearly as practicable pro rata in such manner as the Board...
Redemption Automatic Conversion