Our experts at Herbst Kinsky together with AustrianStartups, the business angel network Austrian Angel Investors Association (aaia) and the law firm Höhne, In der Maur & Partner, have developed and now published a standard contract for convertibles.

A fair basis, more legal certainty and faster implementation – all this is provided by the standard contract for convertibles. Almost one year after the joint publication of the standard term sheet and the model cap table, we are once again helping Austria’s founders and investors with a standard contract.

A convertible loan agreement is often the first contract between a start up and an investor. The capital is provided in the form of a convertible loan and can later be converted into shares in the company. In practice, however, there are always misunderstandings and ambiguities about the concrete form of this type of contract. 

The english standard contract for convertibles contains provisions of usual content for investments in an Austrian GmbH on the conclusion of a convertible. The individual contractual provisions are also accompanied by explanations and comments in order to provide the user with appropriate additional information. 

The standard contract is intended to provide a legal basis for a convertible loan agreement. Depending on the company and investor:in, the contractual provisions must of course be adapted in individual cases, which means that this contract does not replace individual legal and tax advice. However, it does provide a fair starting position between the parties involved, facilitates their cooperation and eliminates misunderstandings.

The standard convertible is intended to reflect common practices and best practices in the start up community. To this end, feedback from both founders and investors was gathered and incorporated into the implementation of this standard convertible.

Download Link: Standard Convertible

Download Link: Term Sheet & Cap Table