Dallas Texas Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a loan agreement between an angel investor and a startup or early-stage company located in Dallas, Texas. This document provides a detailed description of the terms agreed upon by both parties regarding the financing, repayment, and other essential aspects of the loan. It sets the foundation for a mutually beneficial relationship between the investor and the company. The Dallas Texas Angel Fund Promissory Note Term Sheet typically includes key elements such as the loan amount, interest rate, repayment terms, maturity date, conversion rights, and any additional stipulations specific to the agreement. It acts as a precursor to the drafting of the official promissory note and serves as a starting point for negotiations. Several types of Dallas Texas Angel Fund Promissory Note Term Sheets may exist, tailored to meet the unique needs and preferences of the investors and companies involved: 1. Standard Term Sheet: This type of term sheet is commonly used in angel investments and includes essential provisions such as the loan amount, interest rate, repayment terms, and maturity date. 2. Convertible Term Sheet: In cases where the angel investor may want the option to convert the loan into equity in the future, a convertible term sheet is employed. It outlines the conditions under which conversion can occur, including the conversion ratio and potential adjustments. 3. Participation Term Sheet: A participation term sheet stipulates that the lender will receive an additional percentage of the company's profits or equity upon successful repayment of the loan, providing the investor with a possible return beyond the agreed-upon interest. 4. Secured Term Sheet: When the lender requires collateral to secure the loan, a secured term sheet is utilized. It details the specific assets that will act as collateral and the steps involved in the event of default. It is important to note that the specific terms and conditions outlined in a Dallas Texas Angel Fund Promissory Note Term Sheet may vary depending on the preferences and risk appetite of the investor, as well as the financial status and potential of the recipient company.