Optional Conversion to Equity Sample Clauses

Optional Conversion to Equity. In the event the Borrower issues equity securities (including instruments or securities convertible into or exchangeable for such equity securities) (“Equity Securities”) in a transaction or series of related transactions resulting in aggregate gross proceeds to the Borrower of at least Five Hundred Thousand Dollars ($500,000), excluding the indebtedness evidenced by this Note (a “Qualified Financing”), on or before the Maturity Date, then the indebtedness evidenced by this Note may be converted at Lender’s option, to that number of Equity Securities of the Borrower equal to (x) the sum of the full balance of this Note (all principal and accrued interest), divided by (y) the per unit price paid by the purchasers of such Equity Securities in the Qualified Financing. Lender shall give notice to the Borrower prior to the initial closing of the Qualified Financing (or the closing of any add-on to the Qualified Financing, as applicable) as to whether the Lender elects to convert the indebtedness evidenced by this Note to equity in accordance with this Section 2.