Common use of Convertible Loans Clause in Contracts

Convertible Loans. Immediately prior to the Closing, the Initial Stockholders loaned the Company an aggregate of $800,000 (up to $920,000 if the over-allotment option is exercised in full), which amount shall be deposited in the Trust Fund pursuant to Section 1.1.2 (the "CONVERTIBLE LOANS"). The principal balance of the Convertible Loans shall bear simple interest at a rate of 4% per annum. Principal and interest will be payable from amounts not held in the Trust Fund, which include certain distributions of interest from the Trust Fund to the Company's management. The Convertible Loans are to be repaid on the earlier to occur of (i) the closing of a Business Combination or (ii) the Company's liquidation. If the Convertible Loans are to be repaid on the Company's liquidation, such loans may be payable only out of interest earned on the Trust Fund and not the principal balance of the Trust Fund. The Convertible Loans shall be convertible, after completion of a Business Combination, into Units at a rate of $6.00 per Unit at the option of the maker of the Convertible Loan. Notwithstanding the foregoing, the Convertible Loans shall not be repaid from the first $700,000 released to the Company from the interest earned on the Trust Fund.

Convertible Loans. Immediately prior to the Closing, the Initial Stockholders loaned the Company an aggregate of $800,000 (up to $920,000 if the over-allotment option is exercised in full), which amount shall be deposited in the Trust Fund pursuant to Section 1.1.2 (the "CONVERTIBLE LOANS"). The principal balance of the Convertible Loans shall bear simple interest at a rate of 4% per annum. Principal and interest will be payable from amounts not held in the Trust Fund, which include certain distributions of interest from the Trust Fund to the Company's management. The Convertible Loans are to be repaid on the earlier to occur of (i) the closing of a Business Combination or (ii) the Company's liquidation. If the Convertible Loans are to be repaid on the Company's liquidation, such loans may be payable only out of interest earned on the Trust Fund and not the principal balance of the Trust Fund. The Convertible Loans shall be convertible, after completion of a Business Combination, into Units at a rate of $6.00 per Unit unit at the option of the maker of the Convertible Loan. Notwithstanding the foregoing, the Convertible Loans shall not be repaid from the first $700,000 released to the Company from the interest earned on the Trust Fund.