Common use of Conversion Mechanics Clause in Contracts

Conversion Mechanics. Holder shall deliver the original of the Note (or an affidavit to the effect that the original Note has been lost, stolen or destroyed and a customary indemnity agreement acceptable to the Company) for cancellation promptly following the conversion of the Note pursuant to any subsection of Section 2; provided, however, that upon satisfaction of the applicable conditions set forth in such subsection of Section 2, this Note shall be deemed converted and of no further force and effect, whether or not it is delivered for cancellation as set forth in this sentence. No fractional shares shall be issued upon conversion of this Note. Any fractional shares otherwise issuable to Holder upon the conversion of this Note shall be immediately cancelled without conversion upon conversion of this Note. Upon conversion of this Note in full, the Company shall be forever released from all its obligations and liabilities under such Note.