Noncircumvention Clause Example from Business Contracts

Noncircumvention. THE COMPANY HEREBY COVENANTS AND AGREES THAT THE COMPANY WILL NOT, BY AMENDMENT OF ITS CERTIFICATE OF INCORPORATION (AS DEFINED IN THE SECURITIES PURCHASE AGREEMENT), BYLAWS (AS DEFINED IN THE SECURITIES PURCHASE AGREEMENT) OR THROUGH ANY REORGANIZATION, TRANSFER OF ASSETS, CONSOLIDATION, MERGER, SCHEME OF ARRANGEMENT, DISSOLUTION, ISSUE OR SALE OF SECURITIES, OR ANY OTHER VOLUNTARY ACTION, AVOID OR SEEK TO AVOID THE OBSERVANCE OR PERFORMANCE OF ANY OF THE TERMS OF THIS NOTE, AND WILL AT ALL TIM...ES IN GOOD FAITH CARRY OUT ALL OF THE PROVISIONS OF THIS NOTE AND TAKE ALL ACTION AS MAY BE REQUIRED TO PROTECT THE RIGHTS OF THE HOLDER OF THIS NOTE. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING OR ANY OTHER PROVISION OF THIS NOTE OR THE OTHER TRANSACTION DOCUMENTS, THE COMPANY (A) SHALL NOT INCREASE THE PAR VALUE OF ANY SHARES OF COMMON STOCK RECEIVABLE UPON CONVERSION OF THIS NOTE ABOVE THE CONVERSION PRICE THEN IN EFFECT, AND (B) SHALL TAKE ALL SUCH ACTIONS AS MAY BE NECESSARY OR APPROPRIATE IN ORDER THAT THE COMPANY MAY VALIDLY AND LEGALLY ISSUE FULLY PAID AND NONASSESSABLE SHARES OF COMMON STOCK UPON THE CONVERSION OF THIS NOTE. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IF AFTER THE SIXTY (60) CALENDAR DAY ANNIVERSARY OF THE ISSUANCE DATE, THE HOLDER IS NOT PERMITTED TO CONVERT THIS NOTE IN FULL FOR ANY REASON (OTHER THAN PURSUANT TO RESTRICTIONS SET FORTH IN SECTION 3(D) HEREOF), THE COMPANY SHALL USE ITS REASONABLE BEST EFFORTS TO PROMPTLY REMEDY SUCH FAILURE, INCLUDING, WITHOUT LIMITATION, OBTAINING SUCH CONSENTS OR APPROVALS AS NECESSARY TO PERMIT SUCH CONVERSION INTO SHARES OF COMMON STOCK. View More