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Unsecured Convertible Promissory Note
"Need an Unsecured Convertible Promissory Note for our Singapore-based tech startup to secure $500,000 in bridge financing, with a 2-year maturity ending March 2025 and conversion rights at a $5M valuation cap."
1. Parties: Identifies the lender and borrower with full legal names and addresses
2. Background: Context of the loan and relationship between parties
3. Definitions: Key terms used throughout the document
4. Principal Amount: Specifies the loan amount and currency
5. Interest Rate: Details of interest calculation and payment terms
6. Maturity Date: When the note becomes due and payable
7. Conversion Rights: Terms and conditions for converting the note to equity
8. Events of Default: Circumstances that trigger default and remedies
1. Security: Any collateral arrangements (though typically none for unsecured notes)
2. Subordination: Ranking of the note relative to other debt
3. Prepayment Rights: Terms for early repayment if allowed
1. Schedule 1 - Conversion Mechanics: Detailed procedures for converting the note to shares
2. Schedule 2 - Form of Conversion Notice: Template notice for exercising conversion rights
3. Schedule 3 - Capitalization Table: Current and post-conversion ownership structure
4. Schedule 4 - Payment Schedule: If interest payments are scheduled before maturity
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