I doubt they would sign a deal that leaves them open like that with handshake deal terms different from the on paper terms. Maybe the debt is only payable on demand.
Can anyone post or point to a sample document?
Can anyone post or point to a sample document?
I'll post a note term sheet that I raised money on last year once I find it but notice the prepayment clause here: http://startuplawyer.com/convertible-notes/convertible-note-...
When you're raising on a convertible note, you're essentially taking a loan from the angel. You're promising to "pay them back" at the next financing by converting their money into stock equal to the principal + interest they've accrued on that note. If you really wanted to (and the term sheet doesn't preclude a payback), you could pay them back for only their principal & interest instead of converting them to stock.
I would be very interested if you could post that doc.