Conversion of Convertible Notes. If the Investor elects to convert Convertible Notes into shares of Common Stock, then the Investor hereby appoints the Company as its attorney in fact to elect to convert, at such time as the Company chooses, on behalf of the Investor a number of shares of Series C Preferred Stock equal to the following: (i) the number of shares of Series C Preferred Stock then held by the Investor multiplied by (ii) the quotient of (a) the aggregate principal amount under the Convertible Notes being converted by the Investor divided by (b) the aggregate outstanding principal amount outstanding at such time under the Convertible Notes held by the Investor. Any certificates representing shares of Common Stock being issued by the Company in connection with such conversion shall be promptly delivered to the Investor.
Appears in 2 contracts
Sources: Security Holders Agreement, Security Holders Agreement (Skullcandy, Inc.)