Six Month Promissory Note Term Sheet
I. Introduction
This Term Sheet ("Term Sheet") is entered into as of [Date] by and between [Your Company Name], a company organized and existing under the laws of [Jurisdiction] with its principal place of business at [Your Company Address] ("Lender"), and [Borrower Name], a company organized and existing under the laws of [Jurisdiction] with its principal place of business at [Borrower Address] ("Borrower").
II. Purpose
The purpose of this Term Sheet is to outline the terms and conditions of a six-month promissory note ("Note") to be issued by the Borrower to the Lender. The Note shall serve as evidence of the Borrower's indebtedness to the Lender, subject to the terms set forth herein.
III. Loan Details
A. Loan Amount:
The principal amount of the loan shall be $100,000.
B. Interest Rate:
The annual interest rate for the Note shall be 8%.
C. Repayment Terms:
The Note shall mature on [Maturity Date]
Borrower shall repay the principal amount along with accrued interest in full on the Maturity Date.
D. Prepayment:
Borrower shall have the option to prepay the Note, in whole or in part, at any time without penalty.
IV. Security
The Note shall be secured by a first lien on all assets of the Borrower, as detailed in a separate Security Agreement to be executed concurrently with the Note.
V. Governing Law and Jurisdiction
This Term Sheet shall be governed by and construed under the laws of the state of [State], without regard to its conflict of law principles. Any disputes arising out of or in connection with this Term Sheet shall be subject to the exclusive jurisdiction of the courts located in [County], [State].
VI. Confidentiality
Both parties agree to keep confidential the terms and existence of this Term Sheet, except to the extent necessary to comply with applicable laws or regulations.
VII. Additional Terms
A. Default:
In the event of default by Borrower under the terms of the Note, Lender shall have the right to declare the outstanding principal amount and accrued interest immediately due and payable.
B. Late Payment:
The Borrower agrees to pay a late fee of $500 for any payment that is not received by the Lender within 10 days of its due date.
C. Representations and Warranties:
Borrower represents and warrants that it has full power and authority to execute and deliver this Term Sheet and to perform its obligations hereunder.
Borrower further represents and warrants that the execution, delivery, and performance of this Term Sheet do not and will not violate any agreement to which it is a party or by which it is bound.
VIII. Miscellaneous
A. Entire Agreement:
This Term Sheet constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.
B. Amendment:
This Term Sheet may only be amended by a written instrument signed by both parties.
C. Counterparts:
This Term Sheet may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute the same instrument.
This Term Sheet is hereby agreed to by the undersigned parties as of the date first written above.
[Your Name]
[Your Title]
[Borrower Name]
[Borrwer Title]
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