I'm not a fan of convertible notes as the form of an angel investment. When I'm making an angel investment, I much prefer to price the round and do a "light Series A" (simple terms, but still a preferred instrument.) Basil Peters has a series of posts up on Angel blog that talks about the problems of Convertible Notes for Angel Investing, suggests Exchangeable Shares for Angel Investors, and even provides a One Page Term Sheet for Angel Investors.
More Thoughts on Structuring an Angel Investment
Other Posts by Brad Feld
Your Piece of the Pie: Does Being The First Full-Time Paid Employee Affect That Founder’s Equity In The Company? - April 21, 2012
The Tragedy Of Calling Things Silicon Blah - April 17, 2012
How Often Do Employees Of VC-backed Startups Get Stock Options? - April 4, 2012
How Do I Protect My Option Grant From A Down Round In The Future? - April 3, 2012
The Monastic Startup - March 20, 2012
"Venture Funding for Dummies: A 2012 Report"

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