Compulsory Convertible Debenture Subscription Agreement

There is a bond in two forms – non-convertible and convertible: CCD is a form of convert bond. The difference is that its owner must accept shares in the company when it matures, instead of having the opportunity to obtain shares or cash. A mandatory convertisable bond (CCD) is a type of bond that must be converted into shares until a given date. It is considered a hybrid security, since it is neither a pure bond action nor a pure action. Before subscribing to the above obligations, FUND must provide a certificate from its factor controllers certifying that the company is not in late payment with a financial institution or bank. Fund subscribes to the bonds in accordance with all the conditions of sanction and execution of this agreement and other relevant documents, such as receivables, personal guarantee and seizure of shares, depending on FUND`s resource position. Debt securities are awarded by the company upon receipt of fund`s underwriting funds through the issuance of a letter of intent to FUND. The conversion report of the compulsory converting bond is decided by the issuer when the bond is issued. The conversion rate is the number of shares in which each bond is converted and can be expressed by borrowing or as a percentage (per 100) of base.

For businesses, the mandatory conversion of bonds into equity is a way to pay down debts without issuing cash. These are in-kind benefits that consist of repayment of principal and payment of interest. In fact, an uninsured business loan is an obligation. (a) The bonds would, if applicable, be cashed in _________equal monthly payments of Rs.______________________/- from the end of the month – the date of the first payment of funds by FUND for the underwriting of debt securities; Without prejudice to FUND`s right to require the prepayment of debt securities in the events mentioned below, FUND reserves the right to accept or reject any claim for early repayment of the company`s or part of the debt securities. Unlike pure debt securities such as corporate bonds, compulsory convertible bonds do not pose a credit risk to the issuing entity, as they end up being converted into equity. The CDDs also mitigate some of the downward pressure that a pure share issue would exert on the underlying stock, as they are not immediately converted into shares. Bondholders do not have the right to vote as shareholders until their bonds are converted into shares. Jusqu`au dépôt ou au paiement des obligations, la société doit verser l`intégralité des intérêts funds sur les obligations ________ (______________________________f___________________________ _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________der titres de créance ou une partie de ces obligations et/ou le paiement d`une tranche d`intérêts sur les titres de créance par la société en intérêts fund funds égal à _________% (__________%_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________