Wednesday, November 1, 2023

Convertible Note Agreement

When organizations or individuals invest in a startup company through the provision of a loan as a component of its first round of raising capital, wherein, rather than accepting cash with interest on their return on investment, they can convert the loan to shares as a feature of the startup's initial funding strategy, as per the clauses of the convertible note agreement, these investors are commonly known as seed investors. Thus, the convertible note agreement stipulates how capital is invested into a particular startup as a type of transient loan, wherein, the company is in its infancy and holds no real value, and neither is it being valued during that time.

 

There exist circumstances, where convertible notes can be favorable. This, being due to the fact that they create an opportunity, for a new company to secure the seed capital needed to launch. Plus, they carry an added advantage of empowering the business, with the value required to achieve a worthwhile valuation cycle at a future date.

 

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A convertible note agreement, is viewed as a sort of loan, with which organizations can cut through the red tape, and the complexities of issuing out equity. Thus, businesses, venture capitalists and other investors prefer convertible notes, since they're quick and straightforward. Moreover, it is typical, that during the first round of fundraising, a startup will struggle to determine its value, especially during the pre-revenue period, or while searching for funding, to bring to fruition the product or service to be sold.

 

Convertible notes are typically held by organizations, or individuals who have placed capital into a new business, and prefer, to roll back the work of concluding its valuation to a later date, when it will be less complicated to show the value of the organization. A convertible note is a sort of short-term loan that, is convertible into stock in the entity. With the convertible note, rather than receiving, with interest the principal due, the note holder credits cash to the startup, in return for shares in the organization.

 

The way this arrangement (the convertible note agreement) works, is that, the investor will furnish a new business with credit and reimbursement terms, with any premium accrued during the course of the loan cycle, alongside the maturity date. In any case, the explanation that prospectors ordinarily prefer a convertible note agreement, is on the grounds that, an organization has areas of strength which are suited for growth. As opposed to reimbursing the convertible note, like one would ordinarily credit, the prospector is paid with shares in the business. The venture capitalist, is most likely seeking to gain admittance to the company at an intensely lowered rate, compared to his interest in getting reimbursed on the loan.

 

The convertible note agreement, must include clause/s covering failure to convert into shares (the note) by the due date. There exists in this agreement, the provision to offer an extension, or require repayment.

 

 

A convertible note agreement, ought to be used by that organization which is in its infancy, or startup stage and has secured potential seed investors. This is great for the beginning phase of a new company, that is during that time on a high growth trajectory. This early, or seed funding, allows the organization to gain value in the short term.

 

The convertible note agreement, is likewise, great for new businesses that need to rapidly get financing. Initially the convertible note agreement is a loan, prior to converting into shareholdership, thus the organization should be able to demonstrate a high growth rate, with positive financial prospects in the short term, for the notes to hold value for investors.

 

Since the convertible note agreement is a loan, (you don’t need a shareholder’s agreement etc.) to conclude this type of arrangement, all you want is a promissory note. However, if the company is unable to achieve success rapidly enough upon maturity, and the financier doesn't afford an extension to the organization, it might need to repay the obligation with interest.

 

Irrespective of whether it’s a new idea that you want to start, or you’re seeking capital for research and development for your business, a valuation, for a startup business is next to impossible to get. A convertible note agreement, notwithstanding, offers a huge benefit. You and your investors can, (using real data, such as, rate of development, deals, operational activities, etc.) calculate how much the business is worth sometime in the not-too-distant future.

 

Although a convertible note agreement, gives businesses a concise method for fund-raising, without the difficulties and deferrals such as those found in ordinary share value discussions. Prospective investors are attracted to the convertible note agreement, due to its ability to return significant yields.  Furthermore, they are easy to set up, and provide leeway for the business to grow and reach those significant achievements, without burdening its incorporators with lengthy fundraising rounds. New companies and prospect shareholders must, nonetheless, move cautiously and conscientiously. Conversely, startups should take care not to enter into share dilution during fundraising, this could bring about critical value weakening, so new businesses ought to think about their capital necessities and any potential weakening ramifications.

 

Finding the right financier is one of the main goals for any new company. In any case, it's vital for the startup to consider all the facts, and then pursue the steps needed to make the right choices with its shares. Convertible notes are valuable for the beginning phase of an organization; however, the terms should be clearly understood.

 

Need assistance with a convertible note agreement? Visit Business Own Corporation – Global Administrators (BizOwn inc.) Member Area, to start writing this agreement, as prepared by practitioners with an average of 14 years of experience. BizOwn inc. – suppliers of a worldwide professional writing service.

 

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convertible

/kənˈvəːtɪbl/

 

adjective

adjective: convertible

1.    of a changeable structure, capability, or character.

"a convertible couch"

o          (currency) can be changed over into different investment vehicles, particularly gold or US dollars.

"a formal commitment has been entered into by countries to convertible currencies "

o          (stocks or bonds) can be changed over into ordinary or preference shares.

"selling offers and convertible bonds"

noun

noun: convertible; plural noun: convertibles

1.1.                 

a convertible security.

"Investing in convertibles can yield returns which are higher than those offered by equities"

 

 

note

/nəʊt/

 

noun

noun: note; plural noun: notes

 

a written statement certifying the commitment to payment on loan or credit.

"a credit note"

Thursday, July 13, 2023

BUSINESS OWN CORPORATION – GLOBAL ADMINISTRATORS WEBSITE HAS OFFICIALLY MOVED TO A NEW DOMAIN

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Domain Name has changed, what does this mean for your company

Business own corporation – G.A (BizOwn inc), www.octahedge.com, July 11, 2023, a leading provider of socio, business & professional development solutions known for the high-quality legal, business and financial documents which can be created on any device with an internet connection, is officially launching its new domain name, www.octahedge.com. With this change it will offer an even more comprehensive service. Nothing has changed, it continues to provide the same great service you’re accustomed to under the previous domain www dot biz-own dot ga. Anyone visiting the website can now follow it @ BizOwn inc.

The company transferred to our new domain in June 2023 to better symbolize our expanding range of worldwide capabilities. And, as a result, the brand has decided to formally migrate the Business Own Corporation to a new domain name.

The Business Own Corporation is one of the few platforms for creating specialty documents as required by the business professional. Leveraging its website and capabilities ensuring guaranteed customer satisfaction.

Additionally, and in contrast to many other service providers, The Business Own Corporation can be used without any technical knowledge, thus creating a platform for anyone to create proficient business, legal or financial documents. This also allows users who take advantage of the platform to excel professionally.

The company is always testing new, innovative ideas to deliver the goods the customers want. Business Own Corporation provides an opportunity to do that while also creating growth strategies that are beneficial to its patrons. As a digital direct-to-consumer brand it is uniquely positioned to deliver a compelling business platform, and is looking forward to onboarding new innovations as it expands.

The platform list spans an assortment of categories such as Advertising, Banking, and Proxies alongside a wide range of informative articles.

Please visit the website at its new domain to write a new document www.octahedge.com

About BizOwn inc.:
The Business Own Corporation is introducing to people tools that tackle all the elements required for their business, legal and financial advocates, using pre-formatted cutting-edge google-able questions to create any legal, business and financial document/s in a manner which is both efficient and uncomplicated. The repository is being filled with essential contracts, agreements, resolutions, spreadsheets, plans, proposals, press releases, and policies, these documents greatly simplify and accelerate all professional writing tasks.

Media Contact:
Business Own Corporation – Global Administrators (BizOwn inc)
Suzette Basson
Director, Global Communications

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and opportunities, including statements regarding the Company’s announcement of its new domain www dot octahedge dot com, its plan to expand its current list of corporate documents as can be found in the repository www.octahedge.com/member-area to provide more options in categories that complement the most current trends, its plans to meet the demands of its growing customer base, and its assessment of its positioning to deliver a compelling platform model and ability to onboard new innovations and expand. There are a number of important factors, opportunities, and risks that could cause actual results to be materially different from those described in these forward-looking statements, including the following: the Company's consolidated results of operations, financial position, and cash flows, as well as the impact of COVID-19 on operations, customer demand, and the supply chain; however a sufficient number of users may still be able to achieve their objectives thanks to the company's platform; the Company might find success in carrying out its essential drives, or its drives might desiredly affect business; the company's capacity to provide services that customers are willing to pay for; customer’s usage of the website facility of the company, inclusive of user approval of its endeavors to develop further its business developmental platform, together with the informative website(blog); customer reaction to the company's advertising efforts in all media; the company's upkeep of a growing number of customers; the company's reliance on information technology and the failure of those information technology systems, including its digital business portal; the system's inability to upgrade or adapt; the Company's capacities (or inability) to keep up with the security of client, worker or organization data; shortfalls derived through third parties who provide organizational administrations regarding specific parts of its business being unable to meet their commitments; the antagonistic impact on the Company's standing in the event that its suppliers don't approach their strategies morally with regards to best business practices and policies, or consent to relevant regulations and guidelines as advocated by law ; adverse global economic and market conditions, including economic factors that have a negative impact on the Company's business in relation to consumer spending on discretionary items; and additional possibilities, dangers, ambiguities, and other yet unknown factors. Except as required by law, the company intends the forward-looking statements to speak only at the time they were made and does not promise to revise or update them as additional information becomes available.

 

 

 

Source: Business Own Corporation – Global Administrators (BizOwn inc)


Monday, May 1, 2023

Terms of Service Agreement

A terms of service agreement, is a document that covers the rules of engagement related to the services being provided by the service provider. The coverage of this document includes (1) services provided, (2) calculation of fees and other charges, (3) billing arrangements, (4) non-payment, (5) request for fee details & remaining work estimate, (6) termination by client, (7) termination by service provider.


If, for instance, one owns an insurance company, the terms of service agreement establish the standards that should be met by service provider and client. when the agreed-upon contract is broken, the terms of service agreement provide a framework for mitigating, restricting and terminating abuse.


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The termination disclaimer states the conditions to which nether service provider or the client will be held liable if an of those terms are violated, this feature of the terms of service is key and should never be left out. Structuring the terms of service agreement in a manner that addresses the way this termination happens is crucial. If you don't, you might expose yourself to liability issues.

The request for fee details & remaining work estimate is another important element in any terms of service agreement. Including a request for fee details & remaining work estimate will safeguard against inconsistency, mismanagement over expenditure of monies. Even though this is an important part of the agreement, it should be clearly understood by the service provider before the commencement of any work. When the client makes a request for fee details & remaining work estimate, the service provider is obligated to furnish an itemized detail of the records concerning the work, i.e., the expenses incurred, and the projected cost of completing the work. The requested fee details provide the client with a synopsis of the fees and work expected from the service provider.

Did you know that services provided electronically, such as software, websites and mobile applications must always be accompanied by a terms of service agreement. Due to misunderstandings and miscommunications that can happen between a service provider and the client, it is advised that the relationship be guarded by a terms of service agreement.

Why should you always implement a terms of service agreement in business? Many people acquire the services a service provider without the use of a terms of service and just accept a verbal agreement. As such the work provided by the service provider frequently contains shocking results or changes that people are surprised to learn about. The client in such an instance will usually criticize the service provider without understanding that these misunderstandings can easily be avoided through a use of a contract.


If you do not make use of a terms of service agreement you might be giving up some important individual rights to which you are entitled. here is a list of them:

Having the work clearly described and writing.

Having a projection of all the costs involved in completing the work beforehand.


Have a laid out and clear billing arrangement.

It's possible that law enforcement will receive your user data without your knowledge or consent.

Making provision for nonpayment or failure to complete work.

Staying up to date with regards to the progress and set time of completion of work.

Establishing conditions for termination of the work by either client or service provider.


Before using the services of any service provider, one should always engage a terms of service agreement because businesses have different ways of working and you do not want to find yourself on the receiving end of a deal gone wrong.


There are important steps to take when creating a comprehensive terms of service agreement if you want to avoid headaches unnecessary delinquency.


Clearly define what the terms of service are and secure a signature before commencing any work.


The service provided by the service provider should be clearly mentioned.

Mention the product or service that your company offers.


The terms of service agreement guidelines to which the service is provided, should be clearly stipulated.


Include the service provider’s acknowledgement that they will abide by the stipulated provisions while providing the service.


There should be Included in the agreement the limitations on liability and disclaimers.


Mention the repercussions of non-adherence to the service terms.

Visit Business Own Corporation – Global Administrators (BizOwn inc.) MIND Repository to start writing a terms of service agreement for your company. BizOwn inc. provides a world class professional writing service.

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term


/tərm/

noun

noun: term

plural noun: terms


The condition/s that must be met before an action can be taken or an agreement can be reached; required by law or by agreement.


"He could only work once terms had been reached"



Synonyms: conditions, stipulations, specifications, provisions, restrictions, qualifications, particulars, points, clauses, rates, charges, costs, fees, and tariffs are the agreed-upon terms under which a war or other dispute is ended.



service


/ˈsərvəs/

service

noun

noun: service


the activity of aiding or taking care of business for somebody.


"The company provided a great service"


plural noun: services: "He offered us a variety of services"


Synonyms:

an act of assistance is a good deed, a gesture of kindness, a helping hand, assistance, assistance in offices, and demonstrations..

Wednesday, February 15, 2023

Joint Venture Agreement

When two or more parties enter into an agreement to combine their capabilities in order to complete a certain project, this type of business arrangement is known as a joint venture agreement. This includes anything from a brand-new venture involving new markets, to one party venturing into the market space(s) of the other party.

Even though the joint venture stands on its own and is distinct from other business interests of the parties. The expenses, losses, and profits accrued as a result of the venture are the property of each party solely.

 

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A joint venture (JV) can be formed using any legal structure such as partnerships, limited liability companies (LLCs), corporations, and any other type of proprietorship, however, it is a common perception for it to viewed only in the sense of a partnership.

Companies that combine their expertise by way of a joint venture are able to utilize these combined resources to accomplish the venture's objective. Leveraging resources in this manner is one of the primary motivations for forming joint ventures. A joint venture collaboration between a company with a well-established manufacturing process and one that has superior distribution channels might capture a large segment of the market while offering a more superior product to the end user.

A joint venture agreement is usually drawn up for short-term projects, but they can also be formed for a longer-term objective. Joint ventures can, through the combination of large and small operations take on multiple projects and deals simultaneously.

A joint venture can also result in cost savings where both businesses in the joint venture can consolidate their production at a lower per-unit rate than they would individually. This is especially advantageous in instances when technological advancements and their implementation can become too costly for the companies to achieve if pursued outside of the joint venture.

Say your company wants to expand its service or product offering to new countries, it can sign a joint venture agreement to supply products to said country’s regional corporation and take advantage of the already existent ecosystem. Companies that want to enter foreign markets frequently employ joint ventures, in which they collaborate with the regional market leader to do so. A joint venture with a local entity is sometimes almost the only way to conduct business in some regions, this especially true for those countries with policies preventing foreign entities from entering their market.

 

 

The joint venture agreement details each party's rights and responsibilities and is a crucial document in this regard, this is regardless of the joint venture type or structure. It is therefore essential that your joint venture agreement be meticulously written to avoid unnecessary court battles at a later stage. The agreement clearly articulates the various aspects of the joint venture: the goals, the venturer’s initial investments, how the daily operations of the venture will be handled, accounting for the profits and losses.

 

 

Establishing new proprietorship is a route most commonly followed when entering into a joint venture agreement. This, and due to the business type will in turn determine how the taxes are paid. If the joint venture is set up as an LLC, its profits and losses will reflect on the owner’s individual tax returns. The joint venture is a separate legal entity and will pay taxes in accordance as a separate business.

The joint venture agreement will detail if it is merely a contractual relationship. The agreement will stipulate the taxation on the profits and losses and how they will be divided hereto.

 


The term partnership is reserved for the incorporation of an entity owned by two or more people. Joint ventures however, bring together two or more distinct businesses into a new one. Safe to say, the partnership agreement is not a joint venture agreement.

An association of two or more companies known formally as a consortium, bears the similarities of a joint venture although it is not one, in that, companies can form a consortium without having legally incorporated a separate business entity. For instance, a group of companies can work together to offer their customers better prices and special rates without formalizing the process, whereas everybody continues to operate their businesses independently and pursuant to their own objectives, with each party being responsible for its risks, profits, losses, and governance within the consortium.

 

 

During the lifespan of the joint venture, the risks and benefits are shared among the joint venturers, this allows each venturer access and use to the resources of the other venturers, without the financial obligation that would be attached if they were not involved in such a venture, this is one of the main advantages of a joint venture. Once the venture is retired the parties hereto are able to resume their identity and continue with their operations.

 

 

When a joint venture agreement is in place, it will typically be accompanied by non-disclosure and exclusivity agreements. These might prohibit participating companies from partaking in certain activities outside of the venture during the course of the project.

 

 

When a joint venture reaches the end of its lifespan, a definite plan detailing how the venture will be dissolved in order to avoid lengthy discussions, costly legal battles, biased practices, and the effects of the dissolution on customers; while taking into account any potential financial loss, such a plan -in practice- is known as an exit strategy. Exit strategies provides to the joint venturers certain advantages especially in terms of conflict avoidance or resolution. The exit stagey will stipulate the rights of the ventures regarding the selling of the new business, operational spinoffs, and or employee ownership and retention.

 

 

Joint venture agreements are only ideal when the mission and success of the venture is being equally committed to by all parties hereto.

 

Joint ventures enable the business entities involved to be able to enter into new markets at a relatively low cost. Although this seems like the perfect situation, bear in mind that in a joint venture each company contributes its own expertise, and the venture’s costs are shared.

 

 

**Note: Also remember that a joint venture for which a separate business entity has not been established may expose the venturers to liabilities like those attributed to a partnership. And that, even though the joint venturers share control, the work load and resources, these are not always divided equally.

 

This article the joint venture agreement has been written for your benefit in understanding the importance behind this agreement, write and download more documents at the Business Own Corporation's - MIND Repository.

 

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joint

/dʒɔɪnt/

 

noun

nounjointplural nounjoints

1.

a place at which two or more components are joined.

"The valve of a car is joined with a seal to prevent unauthorized valve operation"

 

2.

The points of partition at which the body of person or animal’s skeletal are fitted together.

"Her stiff joints make bending for any reason quite difficult"

3.

INFORMAL

A specific place where people meeting for drinks, or entertainment.

"the arcade joint"

adjective

adjectivejoint

1.    An activity or thing which is shared, held, or made by two or more people together.

"a joint response was given by the opposing teams"

o    sharing in a position, achievement, or activity.

"a joint winner"

o    LAW

When two or more parties are viewed as one - regarded together.

verb

verbjoint3rd person presentjointspast tensejointedpast participlejointedgerund or present participlejointing

2.

Make something available or fasten with joints.

o    Weld together the joints of the chain.

 

 

venture

/ˈvɛn(t)ʃə/

 

noun

nounventureplural nounventures

1.    An undertaking involving certain risk.

"pioneering ventures into territories where no one has been before"

o    Entering into a certain type of business venture.

" the two spectacle manufactures have entered into a joint venture"

verb

verbventureventures venturedventuring

1.

Embarking on a certain course of action that involves risk.

"she ventured into deep an uncharted waters"

o    expose to the risk of loss.

"agents use other people's money to take risks, they do not venture with their own capital"