Common use of Early Conversion and Prepayment Clause in Contracts

Early Conversion and Prepayment. 5.1 The Borrower shall have the right to prepay the entire Loan at any time, after giving the Lender ten (10) days prior notice of intent to prepay. 5.2 The entire Loan, including all Principal and interest, shall be immediately due and payable upon the closing of a transaction or series of related transactions resulting in the acquisition by a third party of at least 75% of the then outstanding shares of capital stock of the Borrower (directly or as a result of a merger or similar transaction) or all or substantially all of the assets of the Borrower. 5.3 In the event that the Borrower completes an initial public offering (“IPO”), the outstanding Principal plus accrued interest will automatically convert upon the closing of the IPO into shares of the Borrower’s common stock (“Conversion Shares”) at the public offering price.