the rights of all parties to this convertible note are expressly conditioned upon such qualification being obtained, unless the sale is so exempt. this convertible note shall, henceforth, be referred to as the “note,” and may be referred to in plurality with other such agreements, referred to as “notes.” the word “holders” shall constitute a plurality of any and all such persons who have similarly advanced funds in exchange for notes with the company. for the purposes of this note, all securities shall be in every way comparable to those issued to other investors by the company. the entire principal and accrued interest associated with this note shall become immediately due and payable upon the insolvency of the company, or in the case of any public action (such as bankruptcy) involving the company, or upon the appointment of any trustee to take possession of the assets of the company, for any reason.
the conversion price shall be automatic upon reaching maturity and shall equal the lowest price paid by investors purchasing securities in the triggering event, minus a discount of (percent) this shall henceforth be referred to as the conversion price. a note purchase agreement containing details of the covenants, representations, and warranties of the company shall be issued in conjunction with this convertible note. this exclusivity agreement template can be used by a vendor to secure exclusive rights to provide goods or services to another organization. pandadoc is not responsible for examining or evaluating such third party materials, and does not provide any warranties relating to the third party materials.
term sheets should not create any obligation to consummate the deal, but parties may wish to use the document as a vehicle for binding confidentiality and exclusivity provisions that cover the initial discussions. you may wish to describe the consequences of ranking for clarity, e.g., the note will be subordinated to the issuer’s existing indebtedness and senior to all future indebtedness, except for permitted indebtedness including mechanics’ liens and obligations to trade creditors. mandatory conversion: the outstanding principal and interest on the note will convert automatically into shares of the issuer’s common or preferred stock upon any of the following events: a change-of-control can be dealt with by converting the note immediately prior to the event, in which case the note holder benefits from the transaction as a stockholder alongside other investors.
covenants: the note will contain standard affirmative and negative covenants for a financing of this type, including but not limited to the following covenants. the definitive documentation [will combine the loan agreement terms, the convertible note [, and the security agreement] in a single document] [will consist of a note purchase agreement with attached forms of the note[s] and security agreement to be executed on closing]. if seller receives or becomes aware of any offer to engage in a competing transaction, he will promptly notify purchaser of such offer, its terms, and the offeror’s identity.
easily negotiate, raise funding. define the overall terms of the deal with this free 2022 convertible note agreement template. this term sheet summarizes key terms of a proposed convertible note issuance, for discussion purposes only. it is non-binding and is not self-executing. no 17+ convertible agreement templates. 1. convertible note agreement template. 2. restaurant convertible note agreement, convertible note template pdf, convertible note template pdf, simple convertible note template, free convertible note template, convertible note template excel.
this convertible note agreement template has 6 pages and is a ms word file type listed under our legal agreements documents. a convertible note agreement template is a document which guides you on which information to print and how to structure it on paper. word version pdf version. what this is. this note is a convertible instrument that is intended to be used by a startup to document a seed investment from a, convertible note term sheet, y combinator convertible note template, convertible note template cooley, llc convertible note template, convertible note certificate, convertible promissory note, nvca convertible note, convertible note lawyer, convertible note sec, convertible note calculator.
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