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1. Parties: Identification of the Lender(s) and the Company (Borrower)
2. Background: Context of the agreement and purpose of the convertible loan
3. Definitions: Defined terms used throughout the agreement
4. Loan Amount and Drawdown: Specification of the principal amount and drawdown conditions
5. Interest: Interest rate, calculation method, and payment terms
6. Term and Repayment: Duration of the loan and repayment provisions
7. Conversion Rights: Terms and mechanics for converting the loan into equity
8. Conversion Price: Methodology for determining the price at which the loan converts to equity
9. Qualifying Financing: Definition and terms of qualifying financing triggering automatic conversion
10. Representations and Warranties: Standard declarations by both parties about their capacity and authority
11. Company Covenants: Ongoing obligations of the company during the term of the loan
12. Events of Default: Circumstances constituting default and consequences
13. Assignment and Transfer: Terms governing the transfer of the note
14. Notices: Communication requirements and contact details
15. Governing Law: Specification of Canadian law as governing law and jurisdiction
1. Security: Include when the loan is secured against company assets
2. Information Rights: Include when lenders are granted specific information access rights
3. Board Observer Rights: Include when lenders are granted rights to observe board meetings
4. Pre-emptive Rights: Include when lenders are granted rights to participate in future fundraising
5. Most Favored Nation: Include when lenders should benefit from any better terms given to future noteholders
6. Change of Control: Include specific provisions for company sale scenarios
7. Subordination: Include when the note needs to be subordinated to other debt
8. Tax Credits: Include when relevant tax credits or benefits apply to the investment
1. Form of Conversion Notice: Template notice for exercising conversion rights
2. Cap Table: Current and post-conversion capitalization table
3. Calculation of Conversion Price: Detailed methodology and examples of conversion price calculations
4. Company Information: Key company details including corporate structure and existing security holders
5. Shareholders' Agreement: Terms that will apply post-conversion
6. Security Documentation: If secured, details of security arrangements and registration
7. Disclosure Schedule: Exceptions to representations and warranties
8. Form of Note Certificate: Template for the physical note certificate if required
Affiliate
Agreement
Applicable Law
Board
Business Day
Change of Control
Company
Completion
Conversion Date
Conversion Notice
Conversion Price
Conversion Rights
Conversion Shares
Default Interest Rate
Directors
Drawdown Date
Encumbrance
Event of Default
Exit Event
Financial Year
Fully Diluted Share Capital
Group
Interest Payment Date
Interest Rate
IPO
Lender
Loan Amount
Long Stop Date
Material Adverse Change
Maturity Date
Note Certificate
Ordinary Shares
Permitted Security Interest
Post-Money Valuation
Pre-Money Valuation
Qualifying Financing
Qualifying Financing Price
Redemption Amount
Redemption Date
Redemption Notice
Related Party Transaction
Relevant Jurisdiction
Security
Security Documents
Shareholders Agreement
Subscription Price
Subsidiary
Tax
Transaction Documents
Valuation Cap
Warranties
Interest
Repayment
Security
Conversion Rights
Anti-dilution
Events of Default
Acceleration
Representations and Warranties
Covenants
Information Rights
Board Rights
Most Favored Nation
Assignment
Confidentiality
Notices
Amendment and Waiver
Subordination
Tag-along Rights
Pre-emptive Rights
Change of Control
Corporate Actions
Share Capital
Drag-along Rights
Taxes
Costs and Expenses
Governing Law
Dispute Resolution
Force Majeure
Severability
Entire Agreement
Further Assurance
Counterparts
Third Party Rights
Technology
Biotechnology
Clean Energy
Financial Services
Healthcare
E-commerce
Software Development
Manufacturing
Media and Entertainment
Consumer Products
Professional Services
Real Estate Technology
Educational Technology
Agricultural Technology
Legal
Finance
Corporate Development
Treasury
Compliance
Executive Leadership
Investment
Corporate Secretariat
Risk Management
Business Development
Chief Executive Officer
Chief Financial Officer
Chief Legal Officer
General Counsel
Investment Manager
Corporate Lawyer
Finance Director
Company Secretary
Investment Analyst
Venture Capital Associate
Private Equity Manager
Corporate Development Director
Treasury Manager
Financial Controller
Compliance Officer
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