Simple Convertible Note Agreement

Conversion required. This loan is converted into equity as defined below, issued by the Company on the maturity date of this loan (as defined below) at a price corresponding to the „conversion price“ described in subsection B. 2.5.2. Purchase entirely for your own account. Each lender acknowledges that this Agreement is entered into with the Lender by relying on the assurance given by that Lender to the Business that the Bonds are acquired as nominees or agents and not for resale, or Distribution of any part thereof. and that the lender does not currently intend to sell, grant or distribute other shares in them. In performing this Agreement, any lender also represents that such lender has no contract, obligation, agreement or agreement with any person to sell, transfer or grant interests to that person or third parties with respect to the Securities. Registration of obligations. The bonds to be issued under this agreement are registered bonds.

The company will keep accounts in its head office for the registration and registration of the transfer of obligations. Before submitting a transfer registration note, the company shall treat the person in who`s name that note is registered as the owner and holder of that note for any purpose, whether or not that note is outstanding, and the company is not affected by any communication to the contrary. Subject to a restriction or transfer condition specified in a note, the holder of a note may, at his option, file it in his personal capacity or by the duly authorized matchmaker with the Chief Executive Office of the enterprise and obtain it immediately thereafter and at the expense of the enterprise. each capital claimed by that holder, from the date on which interest was paid on the note so issued or, if no interest has yet been paid, from the date of issue and registration of the note in the name of the person or persons established in writing by that holder or his lawyer for the same nominal amount as the nominal amount which had not been paid at the time. One of the most difficult tasks for a startup founder is to raise funds, especially in the early stages of operations. At that time, the business idea is just beginning to grow and will take some time to develop into viable businesses. With little data to rely on, the startup can`t really be valued on its value, shares can`t be issued, and it becomes difficult to attract investors. Convertible bonds have evolved in response to this situation. The biggest risks of convertible borrowing for start-up creators. The bill must finally be reimbursed. The same applies if your startup fails.

Since many startups fail, you can owe hundreds of thousands of dollars. Discount Rate: If the convertible loan has a discount rate, the holder of the loan may purchase shares at a lower interest rate than series A financiers. .