Conditional Capital Sample Clauses
The Conditional Capital clause establishes the terms under which additional capital may be issued by a company, contingent upon the occurrence of specific events or fulfillment of certain conditions. Typically, this clause outlines scenarios such as the exercise of convertible securities, warrants, or employee stock options, specifying the amount and timing of new share issuance. Its core practical function is to provide a clear framework for increasing a company’s share capital in response to future needs or obligations, thereby ensuring transparency and predictability for both the company and its investors.
Conditional Capital. During the term of this Warrant, the Company will at all times have authorized and reserved a sufficient number of its Common Shares as contingent capital (bedingtes Kapital) to provide for the exercise of the rights to purchase Common Shares as provided for herein. Alternatively, the Company may use its current or future authorized share capital or treasury shares to issue the Warrant Shares. The Company acknowledges that compensation for damages may not be sufficient remedy for the Holder in case of the Company’s failure to comply with its obligations under this paragraph and therefore expressly confirms that the Holder may in such case request specific performance (Realerfüllung) upon due exercise of its purchase rights pursuant to Section 2 hereof from time to time by obligating the Company to deliver such number of shares as would have been issued to the Holder in connection with such exercise of its purchase rights from time to time. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, including by maintaining an effective registration statement under the Securities Act permitting the issuance of Warrant Shares upon exercise of this Warrant from the Initial Exercise Date until the Termination Date, or of any requirements of the Trading Market upon which the Common Shares may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions ...
Conditional Capital. For the whole duration of the A Warrants, the Issuer shall maintain a sufficient number of its A Shares as conditional capital (capital conditionnel) to allow the exercise of the rights to purchase A Shares as provided for in these Terms.