Nasdaq 20% Rule: Conversion and Exercise Price Floors | Practical Law
Standard Clauses that can be used as sample contractual language when structuring a securities transaction with conversion or exercise price floors to avoid or defer stockholder approval required by Nasdaq's 20% rule. These Standard Clauses can be used as a starting point in drafting provisions in convertible notes, preferred stock certificates of designation, warrants, and securities purchase agreements. These Standard Clauses have integrated notes with important explanations and drafting tips.