Common use of Conversion Event Clause in Contracts

Conversion Event. Upon the occurrence of any transaction or event that shall result in the Note becoming convertible into any shares of capital stock of the Company, the Company will take all actions necessary such that immediately prior to the closing of such transaction or event (i) the Company will have all requisite corporate power and authority to issue, sell and deliver any shares of capital stock of the Company that may be issuable upon the conversion of the Note in accordance with its terms (the “Conversion Shares”), and (ii) such Conversion Shares, when issued, will be validly issued, fully paid and nonassessable.