Conversion or Repayment Upon Maturity Clause Samples
The "Conversion or Repayment Upon Maturity" clause defines what happens to a financial instrument, such as a convertible note or loan, when it reaches its maturity date. Typically, this clause gives the issuer or holder the option to either convert the outstanding principal and accrued interest into equity of the company or require repayment in cash. For example, if a startup has not yet raised a qualifying financing round by the maturity date, the investor may choose to convert the debt into shares or demand repayment. This clause ensures clarity for both parties by specifying the available options at maturity, thereby reducing uncertainty and potential disputes about the resolution of the outstanding obligation.
Conversion or Repayment Upon Maturity. In the event that any Debt under this Note remains outstanding on the Maturity Date, then the principal amount under this Note then outstanding and any accrued but unpaid interest thereon shall, at the option of the Lender, either (a) become immediately due and payable on such date or (b) convert on such date into that number of shares of Series C Preferred Stock which is equal to the quotient obtained by dividing (i) the sum of (A) the then outstanding principal amount of this Note elected by the Lender to be so converted and (B) any accrued but unpaid interest thereon elected by the Lender to be so converted by (ii) $2.66 (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction after the date hereof). Any principal and any accrued but unpaid interest not converted into shares of Series C Preferred Stock as provided in the preceding sentence shall be paid in cash on the Maturity Date. Prior to the execution of this Note, the Company shall have reserved and set aside for issuance to the Lender such number of shares of Series C Preferred Stock as would be issuable upon conversion of the Note pursuant to this Section 5(b).
Conversion or Repayment Upon Maturity. In the event that any indebtedness under this Note remains outstanding on the Maturity Date, then all outstanding principal and unpaid accrued interest under this Note shall either (i) become immediately due and payable on such date, or (ii) at the option of Holder, convert on such date into shares of Common Stock at the Conversion Price.
Conversion or Repayment Upon Maturity. In the event that any indebtedness under this Note remains outstanding on the Maturity Date, then all outstanding indebtedness under this Note shall, at the option of Company, either (a) become immediately due and payable on such date, or (b) convert on such date into shares of the Company’s common stock at a conversion price equal to the lower of (i) $.40 or (ii) the average of the closing stock prices for the five business days immediately prior to the Maturity Date (provided, however, that the Company has a sufficient number of authorized shares of common stock to allow such conversion at such time, and that Investor is an accredited investor at the time of such conversion as such term is defined in Rule 501 under the Securities Act of 1933, as amended).