Adjustments to the Conversion Rate in Connection With a Make Whole Fundamental Change Sample Clauses

This clause defines how the conversion rate of a convertible security is modified if a make-whole fundamental change occurs, such as a merger or acquisition. In practice, it typically provides for an increase in the number of shares an investor receives upon conversion if the fundamental change happens within a specified period, often using a preset adjustment table or formula. The main purpose of this clause is to protect investors from potential loss of value due to significant corporate events, ensuring they receive fair compensation and maintaining the attractiveness of the convertible security.