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.
Keywords: San Antonio Texas, convertible promissory note, corporation, series of notes, convertible note purchase agreement. A San Antonio Texas convertible promissory note by a corporation is a legal document that outlines the terms and conditions of a loan agreement between a corporation in San Antonio, Texas and the lender. This note is part of a series of notes issued by the corporation in accordance with a convertible note purchase agreement. A convertible promissory note allows the lender to convert the loan into equity in the corporation at a later date, based on predetermined conversion terms stated in the note. By issuing this type of note, the corporation can raise funds while giving the lender the option to convert the debt into ownership in the company. The San Antonio Texas convertible promissory note by corporation — one of a series of notes issued pursuant to a convertible note purchase agreement, may have different variations depending on the specific terms and conditions agreed upon by the corporation and the lender. These variations can include: 1. Interest Rate and Payment Terms: The note specifies the interest rate at which the loan will accrue and the payment terms, including the frequency and timing of interest and principal payments. 2. Maturity Date: The note sets a specific maturity date, which is the deadline for the corporation to repay the loan in full, including any accrued interest. 3. Conversion Terms: The note outlines the conversion terms, such as the conversion ratio, conversion price, and any adjustment mechanisms that may apply. 4. Redemption Rights: In some cases, the note may provide the corporation with the right to redeem the note before the maturity date, subject to certain conditions and terms. 5. Default and Remedies: The note specifies events constituting default and the remedies available to the lender in case of default, such as acceleration of the loan, demanding immediate repayment, and taking legal action. 6. Governing Law and Jurisdiction: The note identifies the governing law, typically the laws of San Antonio, Texas, and the jurisdiction where any legal disputes will be resolved. It is important to note that the exact terms and conditions of a San Antonio Texas convertible promissory note by corporation — one of a series of notes issued pursuant to a convertible note purchase agreement may vary depending on the specific agreement between the corporation and the lender. Parties involved should carefully review and understand the terms before entering into such an agreement.Keywords: San Antonio Texas, convertible promissory note, corporation, series of notes, convertible note purchase agreement. A San Antonio Texas convertible promissory note by a corporation is a legal document that outlines the terms and conditions of a loan agreement between a corporation in San Antonio, Texas and the lender. This note is part of a series of notes issued by the corporation in accordance with a convertible note purchase agreement. A convertible promissory note allows the lender to convert the loan into equity in the corporation at a later date, based on predetermined conversion terms stated in the note. By issuing this type of note, the corporation can raise funds while giving the lender the option to convert the debt into ownership in the company. The San Antonio Texas convertible promissory note by corporation — one of a series of notes issued pursuant to a convertible note purchase agreement, may have different variations depending on the specific terms and conditions agreed upon by the corporation and the lender. These variations can include: 1. Interest Rate and Payment Terms: The note specifies the interest rate at which the loan will accrue and the payment terms, including the frequency and timing of interest and principal payments. 2. Maturity Date: The note sets a specific maturity date, which is the deadline for the corporation to repay the loan in full, including any accrued interest. 3. Conversion Terms: The note outlines the conversion terms, such as the conversion ratio, conversion price, and any adjustment mechanisms that may apply. 4. Redemption Rights: In some cases, the note may provide the corporation with the right to redeem the note before the maturity date, subject to certain conditions and terms. 5. Default and Remedies: The note specifies events constituting default and the remedies available to the lender in case of default, such as acceleration of the loan, demanding immediate repayment, and taking legal action. 6. Governing Law and Jurisdiction: The note identifies the governing law, typically the laws of San Antonio, Texas, and the jurisdiction where any legal disputes will be resolved. It is important to note that the exact terms and conditions of a San Antonio Texas convertible promissory note by corporation — one of a series of notes issued pursuant to a convertible note purchase agreement may vary depending on the specific agreement between the corporation and the lender. Parties involved should carefully review and understand the terms before 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.
