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Convertible Note Contract
"I need a Convertible Note Contract for my UK-based tech startup to secure £500,000 in bridge financing, with a 20% discount rate on conversion and a valuation cap of £5 million, to be issued by March 2025."
1. Parties: Identification of the issuer and noteholder(s)
2. Background: Context and purpose of the convertible note
3. Definitions: Key terms used throughout the agreement
4. Subscription: Terms of the note subscription including amount and payment
5. Interest: Interest rate and payment terms
6. Conversion Rights: Terms and conditions for converting the note to equity
7. Repayment: Terms for repayment if conversion doesn't occur
8. Events of Default: Circumstances constituting default and consequences
1. Security: Terms of any security provided for the note - used when the note is secured against assets
2. Transferability: Provisions regarding transfer of the note - used when transfer rights need to be restricted or defined
3. Information Rights: Rights of noteholder to company information - used when noteholder requires specific information access
4. Tag-Along Rights: Rights to participate in sale of company shares - used when providing additional investor protections
1. Form of Conversion Notice: Template notice for exercising conversion rights
2. Calculation of Conversion Price: Detailed methodology for calculating conversion price
3. Cap Table: Current and post-conversion shareholding structure
4. Company Information: Key company details and financial information
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