Common use of Reserve for Conversion Shares Clause in Contracts

Reserve for Conversion Shares. Seller shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock or other securities for the purpose of issuing Common Stock or other securities upon the conversion of the Note. If at any time the number of authorized but unissued shares of Common Stock or other securities shall not be sufficient to satisfy the conversion of the Note, if any, Seller shall forthwith take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock or other securities to such number of shares as shall be sufficient for such purpose. If any capital reorganization or any Liquidation Event of Seller shall be effected in such a way that holders of Common Stock shall be entitled to receive capital stock, securities or assets with respect to or in exchange for Common Stock, then, as a condition of such reorganization, reclassification or Liquidation Event, lawful and adequate provisions shall be made whereby the holder of the Note shall thereafter, upon conversion, have the right to receive such shares of capital stock, securities or assets as may be issued or payable with respect to or in exchange for the number of outstanding shares of such Common Stock into which the Note held at the time of such capital reorganization, reclassification or Liquidation Event is convertible.