Convertible Debt. A convertible debt instrument is considered a second class of stock if— (A) It would be treated as a second class of stock under paragraph (l)(4)(ii) of this section (relating to instru- ments, obligations, or arrangements treated as equity under general prin- ciples); or (B) It embodies rights equivalent to those of a call option that would be treated as a second class of stock under paragraph (l)(4)(iii) of this section (re- lating to certain call options, war- rants, and similar instruments).
Appears in 9 contracts
Samples: Supplemental Contract, Publishing Agreement, Supplemental Contract
