Glossary

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CLA (Convertible Loan Agreement)

A Convertible Loan Agreement (CLA) is a legal document that outlines the terms and conditions of a loan that may be converted into equity at a later stage, typically during a subsequent funding round or a liquidity event such as an IPO or acquisition. The CLA establishes the terms of the loan, including the principal amount, interest rate, and repayment schedule, as well as the conditions under...

Co-Sale / Tag-Along

A Co-Sale/Tag-Along provision is a clause that can be included in a shareholder agreement or a stock purchase agreement that gives minority shareholders the right to join in a sale of shares of the company to a third party. The Co-Sale provision allows minority shareholders to sell their shares alongside the majority shareholder in the event of a sale of the company, while the Tag-Along provisi...