Common use of Surrender of Debentures Clause in Contracts

Surrender of Debentures. Notwithstanding anything to the contrary set forth herein, upon conversion of the Debentures in accordance with the terms hereof, a Holder shall not be required to physically surrender the Debenture to the Company unless the entire number of shares represented by such Debenture are so converted. The Holder and the Company shall maintain records showing the number of shares so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of such Debenture upon each such conversion. Notwithstanding the foregoing, if any portion of the Debenture is converted as aforesaid, the Holder may not transfer such Debenture unless the Holder first surrenders such Debenture to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Debenture, registered as the Holder may request, representing in the aggregate the remaining principal amount owed by the Company to the Holder thereunder. The Holder and any assignee, by acceptance of a certificate representing shares of Common Stock pursuant to a conversion, acknowledge and agree that, unless a substitute Debenture is provided by the Company and accepted by the Holder, by reason of the provisions of this paragraph, following such conversion, the principal amount of such Debenture may be less than the number stated thereon.