Unified UAE Legislation Database

Template: KISS Note (Keep It Simple Security)

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

[Company's Letterhead]

 

KEEP IT SIMPLE SECURITY (KISS) NOTE

 

THIS NOTE IS NOT A LEGALLY BINDING INSTRUMENT UNTIL EXECUTED BY ALL PARTIES

 

ISSUER: 

[Full Legal Name of the Company], a company incorporated in [Jurisdiction] with license number [Number] ("Company")

 

PURCHASER: 

[Full Legal Name of the Investor], a [e.g., individual / company] [Address] ("Purchaser").

 

1. AGREEMENT TO SELL AND PURCHASE

The Company agrees to issue and sell to the Purchaser a KISS Note in the principal amount of [Investment Amount] ([Amount in Words]), and the Purchaser agrees to purchase the same on the date of this agreement.

 

2. INTEREST

The outstanding principal amount of this Note shall accrue simple interest at a rate of [%] per annum.

 

3. MATURITY

This Note shall mature and become due and payable on [Date] ("Maturity Date").

 

4. CONVERSION

 

4.1. Conversion upon Next Equity Financing

If the Company completes an equity financing of at least [Minimum Threshold] ("Qualified Financing"), this Note shall automatically convert into a new class of shares ("New Shares") issued in the Qualified Financing. The conversion price per share will be the lesse...