Common use of Conversion of Convertible Note Clause in Contracts

Conversion of Convertible Note. The Holder shall have the right, at its option, at any time, and from time to time, after (i) the occurrence of an Event of Default or (ii) February 28, 1998, whichever shall occur earlier, to convert the principal amount of this Convertible Note, or any portion of such principal amount that is $1,000 or an integral multiple thereof, into that number of fully paid and nonassessable shares of Common Stock (as such shares shall then be constituted) obtained by dividing the aggregate principal amount of this Convertible Note or portion thereof subject to conversion by the applicable Conversion Price. The Holder is not entitled to any rights of a holder of Common Stock until such holder has converted its Convertible Note to Common Stock and only to the extent such Convertible Note is deemed to have been converted to Common Stock under Section 4.2 below. Notwithstanding the foregoing, the conversion rights of the Holder set forth herein shall be limited to the extent set forth in the Agreement.