Convertible Promissory Note between Allied Corp. and Allied Special Opportunities Limited (February 2020)
Allied Corp., a Nevada company, agrees to borrow $1,300,000 from Allied Special Opportunities Limited, with repayment due on demand after 179 days and interest at 10% per year. The lender can convert the loan into company shares at $1.25 per share within 179 days, but cannot own more than 9.9% of the company’s stock. The loan is secured by company assets, and Allied Corp. cannot transfer the note without the lender’s consent. The agreement is governed by Nevada law.
EXHIBIT 10.16
CONVERTIBLE PROMISSORY NOTE
February __, 2020
| PRINCIPAL AMOUNT: USD$1,300,000 | DUE: August __, 2020 |
FOR VALUE RECEIVED, the undersigned Allied Corp. (the "Borrower" or the “Company”), company incorporated under the laws of the State of Nevada, hereby promises to pay Allied Special Opportunities Limited (the "Lender"), at such address or at such other place as the Lender may from time to time designate by written notice to the Borrower, the principal amount of One Million Three Hundred Thousand Dollars ($1,300,000), ON DEMAND at any time after 179 days from the date hereof (the "Principal Amount"), in lawful money of the United States of America, with simple interest at 10% per annum..
The Borrower may pre-pay the Principal Amount and any unpaid interest or any portion thereof at any time and from time to time without notice, further interest, bonus or penalty provided, however, that a minimum of six months interest shall be payable from the date hereof regardless of such repayment date.
At the option of Lender, this note is convertible at any time through that date which is 179 days from the date of issuance at a conversion price of $1.25 per share. Unless otherwise agreed in writing by both parties, at no time will the Lender convert any amount of this Note into common stock that would result in the Lender owning more than 9.9% of the common stock outstanding.
The Company hereby grants to Lender a security interest in the Company’s collateral pursuant to the terms of that certain Security Agreement of even date herewith, a copy of which is attached as Exhibit A hereto (the “Security Interest”).
PRESENTMENT for payment, demand, protest and notice of dishonour and protest hereof are hereby waived.
THIS PROMISSORY NOTE is governed by and shall be interpreted pursuant to the laws of the State of Nevada and all federal laws of the United States of America applicable therein.
THIS PROMISSORY NOTE is not assignable by the Borrower without the prior written consent of the Lender.
| ALLIED CORP. | ||
| By: | ||
|
| Name: Calum Hughes | |
| Title: Chief Executive Officer | ||
