The Convertible Promissory Note is a ready-to-use finance & investment template you can send for signature in minutes. It is written for 2 signers (company and investor) and, by default, expires 30 days after it is sent if left unsigned. It covers two signers, investment. Like every Abundera Sign template it is a convenience draft structured for ESIGN Act and UETA compliance, not a substitute for legal advice. Each signed copy is sealed with PAdES-LTA digital signatures, dual RFC 3161 timestamps, and a tamper-evident evidence package in WORM storage.
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# Convertible Promissory Note **Date of Issuance:** ___________ **Principal Amount:** $___________ FOR VALUE RECEIVED, ___________ ("Company"), a ___________ organized under the laws of the State of ___________, hereby promises to pay to: **Investor:** ___________ ("Holder") the principal sum of $___________ (the "Principal"), together with accrued interest, subject to the terms set forth below. ## 1. Interest **Interest Rate:** ___________ Interest shall accrue on the outstanding Principal from the Date of Issuance and shall be ___________. Accrued interest shall not be payable in cash but shall be added to the Principal for purposes of conversion. ## 2. Maturity Date **Maturity Date:** ___________ Unless earlier converted or repaid, the outstanding Principal plus accrued interest shall be due and payable on the Maturity Date. **Maturity Extension:** ___________ ## 3. Conversion upon Qualified Financing Upon the closing of a Qualified Financing (as defined below), the outstanding Principal and accrued interest shall automatically convert into shares of the equity securities issued in the Qualified Financing. **Qualified Financing Threshold:** $___________ in aggregate gross proceeds (excluding conversion of this Note and other convertible instruments). **Conversion Discount:** ___________ to the price per share paid by new investors in the Qualified Financing. **Valuation Cap:** $___________ The conversion price shall be the lower of: (a) the price per share in the Qualified Financing multiplied by (1 minus the Conversion Discount); or (b) the price per share implied by the Valuation Cap divided by the Company's fully diluted capitalization immediately prior to the Qualified Financing. ## 4. Conversion at Maturity