A "convertible debenture" is a type of business loan that leaves the lender the option of taking stock in the company instead of repayment.
In theory, the market price of a convertible debenture should never drop below its intrinsic value. The intrinsic value is simply the Number of Shares Being Converted at Par Value times the Current Market Price of Common Shares.
This ConvertibleDebenture (this "ConvertibleDebenture") is one of a duly authorized issuance of up to $_________ aggregate principal amount of ConvertibleDebentures of the Company referred to in that certain Securities Purchase Agreement dated as of the date hereof between the Company and the Purchaser named therein (the "Agreement").
This ConvertibleDebenture is transferable and assignable to one or more Persons, in accordance with the limitations set forth in the Agreement.
The Company may, and shall be obligated to, prepay all or a portion of this ConvertibleDebenture on the terms specified in the Agreement.
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