A Convertible Note is a simple promissory note, usually bearing interest and payable at some future date. The unique aspects of a convertible note are:
A. It converts into equity in the company so long as certain agreed metrics are achieved;
B. Conversion rather than repayment is the usual intention of the parties
C. The usual events for conversion (a conversion event) could be some or all of:
1. Later financing acquired of an agreed minimum level;
2. Developmental milestones reached by the company; and/or
3. Strategic partnerships concluded with important companies;
The conversion into equity is usually at a valuation that is consistent with the valuation agreed to with investors in an investment round that occurs at a later time.
A Washington Convertible Promissory Note by Corporation is a legal document that outlines the terms and conditions of a loan agreement between a corporation and an investor. This note is part of a series of notes issued by the corporation pursuant to a Convertible Note Purchase Agreement. The Washington Convertible Promissory Note by Corporation includes various important details such as the principal amount of the loan, the interest rate, the maturity date, and the conversion terms. It also specifies how the interest will be calculated and paid, whether in cash or as an accrual on the principal. One of the key features of this note is its convertibility. In accordance with the Convertible Note Purchase Agreement, the investor has the option to convert the loan amount into shares of the corporation's stock at a predetermined conversion price. This provides an opportunity for the investor to potentially benefit from any future increase in the corporation's stock value. It is worth noting that there can be different types or series of Washington Convertible Promissory Notes issued by the corporation. These various series of notes may have different terms and conditions, conversion prices, or maturity dates. The purpose of having multiple series of notes is to accommodate different investors' preferences and requirements. Investors should carefully review the terms of the Washington Convertible Promissory Note and the Convertible Note Purchase Agreement before investing. It is recommended to seek legal counsel to ensure a clear understanding of the obligations, rights, and risks associated with this type of investment. In summary, the Washington Convertible Promissory Note by Corporation — One of Series of Notes Issued Pursuant to Convertible Note Purchase Agreement is a legally binding document that secures a loan between a corporation and an investor. Its convertibility feature allows the investor to potentially convert the loan into shares of the corporation's stock. Different series of notes may exist, each with distinct terms and conditions. Careful consideration and expert advice are essential when entering into such an agreement.A Washington Convertible Promissory Note by Corporation is a legal document that outlines the terms and conditions of a loan agreement between a corporation and an investor. This note is part of a series of notes issued by the corporation pursuant to a Convertible Note Purchase Agreement. The Washington Convertible Promissory Note by Corporation includes various important details such as the principal amount of the loan, the interest rate, the maturity date, and the conversion terms. It also specifies how the interest will be calculated and paid, whether in cash or as an accrual on the principal. One of the key features of this note is its convertibility. In accordance with the Convertible Note Purchase Agreement, the investor has the option to convert the loan amount into shares of the corporation's stock at a predetermined conversion price. This provides an opportunity for the investor to potentially benefit from any future increase in the corporation's stock value. It is worth noting that there can be different types or series of Washington Convertible Promissory Notes issued by the corporation. These various series of notes may have different terms and conditions, conversion prices, or maturity dates. The purpose of having multiple series of notes is to accommodate different investors' preferences and requirements. Investors should carefully review the terms of the Washington Convertible Promissory Note and the Convertible Note Purchase Agreement before investing. It is recommended to seek legal counsel to ensure a clear understanding of the obligations, rights, and risks associated with this type of investment. In summary, the Washington Convertible Promissory Note by Corporation — One of Series of Notes Issued Pursuant to Convertible Note Purchase Agreement is a legally binding document that secures a loan between a corporation and an investor. Its convertibility feature allows the investor to potentially convert the loan into shares of the corporation's stock. Different series of notes may exist, each with distinct terms and conditions. Careful consideration and expert advice are essential when entering into such an agreement.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
