Terms & Conditions

1. The investment will be made by way of a subscription for redeemable and retractable preferred shares in the capital stock of the company, which the Applicant is establishing or has established. If the applicant meets all the terms and conditions of the agreement with the PME Fund (and its intermediary The Jewish Community Foundation of Montreal (JCF), retraction can occur no earlier than one year from the date of issuance. If the applicant fails to meet any of the terms and conditions, the Committee of the PME Fund can demand retraction (i.e. repayment of the amount invested in preferred shares) 10 days following the breach . The applicant(s) must provide their personal guarantee, which will guarantee the repayment in full of the amount invested by the PME Fund in the preferred shares as described above.

2. The actual investment contemplated by this application, and the agreement which will follow, will be made by JCF acting as intermediary for the PME Fund and the shares being subscribed for shall be issued in the name of the JCF The PME Fund shall have the right to exercise the right of retraction with respect to the preferred shares in question and shall also have the right to negotiate with the Applicant the terms and conditions of repayment of the amount invested.

3. The Committee of the PME Fund must approve any dividend to common shareholders.

4. Salaries to the administrators must be consistent with the business plan. Any payments to non-arms length parties must be disclosed and consistent with the business plan.

5. Any transaction or modification to the business that was not contemplated by the business plan must be approved by the Committee of the PME Fund.

6. The applicant must demonstrate the ability and willingness to re-purchase the preferred shares.

7. The applicant must indicate the potential source for the balance of the company’s financing (“The company” is the entity for which the applicant is seeking assistance of the PME Fund).

8. The applicant must report quarterly balance sheet, income statement, GST/QST payment, and accounts receivable listing to the Committee of the PME Fund no later than 30 days past each quarter until the investment is fully repaid.

9. The applicant must supply the Committee of the PME Fund, for the term of the loan, with a year-end financial statement and a copy of the Federal tax return filed on behalf of the company no later than 120 days past the corporate year-end.

10. The applicant must comply with all deductions at source, GST and QST tax filings.

11. The applicant agrees to engage in ethical business practices.

Credit History

Please provide a recent credit bureau report from Equifax or Trans Union.

Credit Check

The applicant hereby authorizes the PME Steering Committee to use, obtain, and verify credit and other information about him/herself with others, including credit bureaus, mortgage dealings, as well as with any other persons as may be permitted or required by law. The applicant also authorizes any person contacted in this regard to provide such information.

Attestation of Accuracy/Disclaimer

The applicant hereby confirms that he/she satisfies all of the criteria and will abide by all the terms and conditions listed in the “PME Fund Application Instructions & Eligibility Requirements” and in the “PME Fund Application Form”. The applicant acknowledges that in the event of: (i) the submission of any false or misleading information or (ii) the failure to comply with any of the said terms and conditions within 10 days of having received written notice from the PME Fund of such failure, then the PME Fund shall be entitled to immediately demand retraction of the preferred shares and the applicant shall be personally liable for any sums payable to the PME Fund (and its intermediary the JCF) as a result of such retraction.

The applicant hereby agrees to indemnify and hold harmless each of the ProMontreal Entrepreneurs mentors, the private investors of the PME Fund, the PME Steering Committee members, and all officers, employees and representatives of ProMontreal Entrepreneurs, Federation CJA and its constituent agencies, as well as the JCF, its director, officers, employees and representatives, from and against any and all: (i) claims relating to anything done or omitted by the PME Fund in the course of assessing the candidacy of and/or providing funding to the applicant and (ii) damages, losses, suits, claims and liability incurred by the PME Fund as a result of any false or misleading information submitted by the applicant or any breach by the applicant of any terms and conditions contained in the “PME Fund Application Instructions & Eligibility Requirements” and in the “PME Fund Application Form”.