Common use of Holders Conversion Rights Clause in Contracts

Holders Conversion Rights. The Holder shall have the right, but not the obligation, to convert all or any portion of the then aggregate outstanding principal amount of this Note, together with interest and fees due hereon, into shares of Common Stock subject to the terms and conditions set forth in this Article III; provided, however, that notwithstanding anything contained in this Note, or in the Warrant issued to the Holder in connection with the closing of the sale of this Note pursuant to the terms of the Purchase Agreement, the aggregate number of shares of Common Stock to be issuable (i) under the Warrant and (ii) upon the repayment or conversion of this Note, including any warrant coverage or other increases granted as a result of delayed filing of any registration statement with the Securities and Exchange Commission (the "Maximum Coverage") with respect to the distribution of the shares of Common Stock acquired by Holder pursuant to subprovisions (i) and (ii) above, shall be subject to a maximum limit such that the Maximum Coverage can not equal or exceed 20% of the number of shares of Common Stock outstanding on the date of this Note without obtaining the requisite shareholder approval. The Holder may exercise such right by delivery to the Borrower of a written notice of conversion not less than one (1) day prior to the date upon which such conversion shall occur. The date upon which such conversion shall occur is (the "Conversion Date").