16. Applicable law – This loan agreement (and all transactions, documents, instruments or other agreements in this loan agreement) is interpreted and governed exclusively by the laws and laws of Canada in quebec, and the courts of Quebec (and, if applicable, the Supreme Court of Canada) are exclusively intended to adjudicate all related disputes. The undersigned irrevocably agrees with the jurisdiction of these courts and accepts the opening of proceedings before these courts. However, this provision is not construed as affecting the investor`s right to apply an arbitral judgment or award outside that province, including the right to register and apply a judgment or award in another jurisdiction. This is the second part of my mini-series, which focuses on termsheets. The aim is to cover the converted credit – in general, the less used method of investment. #SAFE #SPA #CLA #simpleagreementforfutureequity #sharepurchaseagreement #convertibleloanagreement #ycombinator financing of bridge can be difficult: if investors are not 100% convinced that things are going well, the requirement for a quick convertible credit can raise great concerns in terms of performance and prospects (i.e. why do you need more money to raise funds?). Losing the trust of existing investors is a very bad way to start the fundraising process. Here are the main features of a share purchase agreement: a converted loan is a loan whereby, if certain events occur, investors and future funds are issued in the company instead of repaying the amount of the loan plus interest. The loan can be converted under a variety of circumstances, including fundraising, exit events and loan maturity. Loans can be repaid automatically at a withdrawal event or at maturity, either when choosing the Investors and Future Fund, or in some cases.

Before looking at individual concepts, it is important to distinguish between the two most commonly used investment methods: convertible bonds and equity. In the case of a stake, an investor receives a stake in the company for cash. Simple and simple. If the investor instead makes a convertible loan available, he will provide a loan with a maturity date, interest and a particular turning point: the right to later convert the loan into a stake in the company. HMRC confirmed that previous investments would not be affected if the converted loan was converted into shares. They also indicated that they would make changes to the rules to clarify that the repaid loan is also INTER SEIS and EIS compatible, but this was not done at the time of the letter. These are the most common terms that an entrepreneur can find in a converted loan, at least based on what we experienced with Credo Ventures. 15. Criminal Code Compliance – In this section, the terms “interest,” “penalty interest” and “advanced credit” have the meanings attributed to them at p. 347 of the Penal Code (Canada), as amended from time to time. The Corporation and the INVESTOR agree that, notwithstanding the contrary agreement, no interest on the credit granted by the investor under this loan agreement will be payable beyond the interest authorized by Canadian law. If the effective interest rate, calculated according to generally accepted actuarial practices and principles, exceeds the advanced loan penalty rate, then, as long as CTC loans are pending, the company will not be able to borrow more and more without the investor agreement that takes precedence over CTC`s debt.