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Equity Promissory Note
"Need an Equity Promissory Note for our Singapore tech startup to secure bridge financing of SGD 500,000 from an angel investor, with a 2% monthly interest rate and automatic conversion upon our Series A round expected in March 2025."
1. Parties: Identification of issuer and holder(s) of the note
2. Background: Context of the note issuance and relationship between parties
3. Definitions: Key terms used throughout the document
4. Promise to Pay: Core obligation to pay specified amount or issue equity
5. Conversion Terms: Conditions and mechanism for converting note to equity
6. Payment Terms: Interest rates, payment schedules, and methods
7. Events of Default: Circumstances constituting default and consequences
1. Security: Collateral provisions if note is secured - use when note is secured by assets
2. Subordination: Priority ranking relative to other debt - use when multiple creditors exist
3. Transfer Restrictions: Limitations on transfer of the note - use when transferability needs to be restricted
1. Form of Conversion Notice: Template for exercising conversion rights
2. Calculation of Conversion Price: Formula and examples for determining conversion price
3. Copy of Board Resolution: Evidence of corporate approval for note issuance
4. Security Details: Description of any collateral (if applicable)
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