Special Rights Entitling to Shares
For financing purposes, a limited liability company may issue options [Option Rights] or other special rights entitling to shares. Such other instruments, for example, bonds, which entitle the holders to convert their bonds to shares of the issuing company, either in full or in part in accordance with the terms of such bonds. Subscription of the shares can be agreed to be paid in cash, other assets or by setting off the subscription price against the outstanding principal of the bond. Such bonds entitling to subscribe shares are generally known as convertible bonds. A bond carrying an option to subscribe shares, but not a right to pay the subscription price by setting off, may be called an option loan. Regarding the company resolutions for issuing special rights and registration thereof, see [Option Rights], as applicable.