Conversion Obligation Sample Clauses
A Conversion Obligation clause requires a party, typically the issuer of a convertible security, to convert the security into another form, such as equity, under specified conditions. This clause outlines the circumstances that trigger conversion, such as a financing round or maturity date, and details the conversion process, including the applicable conversion rate or formula. Its core practical function is to ensure that both parties understand when and how the conversion will occur, thereby providing predictability and reducing disputes over the terms of conversion.
Conversion Obligation. (a) Subject to and upon compliance with the provisions of this Indenture, each Holder shall have the right, at such Holder’s option, prior to the Close of Business on the second Scheduled Trading Day immediately prior to the Stated Maturity, to convert the principal amount of any such Securities, or any portion of such principal amount which is $1,000 or a multiple thereof at the rate per $1,000 principal amount of such Security (the “Conversion Rate”) then in effect, (x) on or after March 15, 2018, without regard to the conditions described in clauses (i) through (iv) below and (y) prior to the Close of Business on the Business Day immediately preceding March 15, 2018, only upon the satisfaction of any of the following conditions:
(i) A Holder may surrender all or a portion of its Securities for conversion during any calendar quarter commencing after September 30, 2013 (and only during such calendar quarter) if the Last Reported Sale Price for the Common Stock for at least 20 Trading Days (whether or not consecutive) during the period of 30 consecutive Trading Days ending on the last Trading Day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable Conversion Price on each applicable Trading Day.
(ii) A Holder may surrender its Securities for conversion during the five Business Day period after any five consecutive Trading Day period (the “Measurement Period”) in which the Trading Price per $1,000 principal amount of Securities, as determined by the Bid Solicitation Agent following a request by a Holder in accordance with the procedures set forth in this Section 7.01(a)(ii), for each Trading Day of such Measurement Period was less than 98% of the product of the Last Reported Sale Price of the Common Stock and the applicable Conversion Rate (“Trading Price Condition”). If the Company does not so instruct the Bid Solicitation Agent to obtain bids when required, or if the Company instructs the Bid Solicitation Agent to obtain bids and the Bid Solicitation Agent fails to make such determination, then, in either case, the Trading Price per $1,000 principal amount of Securities will be deemed to be less than 98% of the product of the Last Reported Sale Price of the Common Stock and the applicable Conversion Rate on each Trading Day of such failure. In connection with any conversion in accordance with this Section 7.01(a)(ii), the Bid Solicitation Agent shall have no obligation to determine the Trading Price of the Secu...
Conversion Obligation. The term “
Conversion Obligation. Except as set forth in Sections 10.07 and 10.08 hereof, if a Holder surrenders all or a portion of a Note for conversion, the Company will deliver to such Holder, on the third Business Day immediately following the Conversion Date for such Note, (i) a number of shares of Common Stock equal to the product of (A)(x) the principal amount of such Note to be converted divided by (y) $1,000 and (B) the Conversion Rate in effect on such Conversion Date, rounded down to the nearest whole number, and (ii) an amount of cash equal to the product of (A) the fraction of a share of Common Stock eliminated by such rounding and (B) the Last Reported Sale Price of the Common Stock on such Conversion Date.
Conversion Obligation. In accordance with Sections 14.01 and 14.07 of the Indenture, as a result of the Merger, from and after the effective time of the Merger, the Indenture is hereby amended such that the Conversion Obligation due upon conversion of any Note, and the conditions to any such conversion, shall be determined in the same manner as if each reference to any number of Common Stock in Article 14 (or any related definitions) of the Indenture is a reference to the same number of units of Reference Property.
Conversion Obligation. (a) Upon compliance with the provisions of this Article 9, a Holder shall have the right, at such Holder’s option, to convert all or any portion (if the portion to be converted is in a Principal Amount of $1,000 or an integral multiple thereof) of such Security at any time prior to the close of business on the scheduled Trading Day immediately preceding the Stated Maturity at a rate (the “Conversion Rate”) of 31.7162 shares of Common Stock (subject to adjustment as provided in this Indenture) per $1,000 Principal Amount (the “Conversion Obligation”).
(i) If a Holder elects to convert Securities at any time from and after the date that is 30 Business Days prior to the anticipated effective date of a Make-Whole Fundamental Change until the Fundamental Change Repurchase Date (or, if there is no Fundamental Change Repurchase Date because the 105% Exception is applicable, then until 30 Business Days following the date of such Fundamental Change, determined without regard to the 105% Exception), the Conversion Rate applicable to each $1,000 Principal Amount of converted Securities shall be increased by an additional number of shares of Common Stock (the “Additional Shares”) as described below. Settlement of Securities tendered for conversion to which Additional Shares shall be added to the Conversion Rate as provided in this subsection shall be settled pursuant to Section 9.02(d) below.
(ii) The number of Additional Shares by which the Conversion Rate will be increased shall be determined by reference to the table attached as Exhibit B hereto, based on the date on which the Make-Whole Fundamental Change occurs or becomes effective (the “Effective Date”) and the Stock Price; provided that if the actual Stock Price is between two Stock Price amounts in such table or the Effective Date is between two Effective Dates in such table, the number of Additional Shares shall be determined by a straight-line interpolation between the number of Additional Shares set forth for the next higher and next lower Stock Price amounts and the two nearest Effective Dates, as applicable, based on a 365-day year; provided further that if (1) the Stock Price is greater than $100.00 per share of Common Stock (subject to adjustment in the same manner as set forth in Section 9.03), no Additional Shares will be added to the Conversion Rate, and (2) the Stock Price is less than $26.72 per share (subject to adjustment in the same manner as set forth in Section 9.03), no Additional Shares will...
Conversion Obligation. Lenders hereby agree to convert the Outstanding Balance at the Adjusted Conversion Price upon the receipt of a Conversion Notice from Canmax. Nothing contained herein shall restrict Lenders' right to convert the Outstanding Balance in accordance with the terms of the Original Agreement at the Adjusted Conversion Price.
Conversion Obligation