Conversion Rights; Adjustments Sample Clauses

The "Conversion Rights; Adjustments" clause defines the terms under which one class of securities, such as preferred shares or convertible notes, can be converted into another class, typically common stock. It outlines the conversion ratio, timing, and procedures, and specifies how the conversion terms may be adjusted in response to events like stock splits, mergers, or new issuances. This clause ensures that holders of convertible securities are protected from dilution or adverse changes in value, maintaining fairness and predictability in the event of corporate actions.