Pe Term Sheet for Equity
TERM SHEET FOR POTENTIAL
EQUITY INVESTMENT
IN [NAME OF CORPORATION] /
AND STRATEGIC ALLIANCE
This term sheet summarizes the principal terms with respect to a potential private placement of equity securities of [NAME OF CORPORATION] (the “Company”) by [NAME OF INVESTOR] (“Investor”) and related strategic alliance. This term sheet is intended solely as a basis for further discussion and is not intended to be and does not constitute a legally binding obligation. No legally binding obligations will be created, implied, or inferred until a document in final form entitled “Series Stock Purchase Agreement,” is executed and delivered by all parties. Without limiting the generality of the foregoing, it is the parties intent that, until that event, no agreement shall exist among them and there shall be no obligations whatsoever based on such things as parol evidence, extended negotiations, “handshakes,” oral understandings, or courses of conduct (including reliance and changes of position). /
The Company and the Investor are discussing a private placement of shares of Preferred Stock on the following terms:
Amount of Investment: $[N] /
Valuation of the Company: $[N] Pre Money / on a fully diluted basis
$[N] Post Money on a fully diluted basis
Type of Security: Shares of the Company’s Series Preferred Stock (“Preferred”), convertible into shares of the Company’s Common Stock (“Common”).
Price Per Share: $[N] (“Original Purchase Price”).
Capitalization of the Company: The current capitalization of the Company is set forth in Exhibit 1, and the capitalization of the Company after this proposed financing is set forth in Exhibit 2. /
Rights, Preferences, Privileges and Restrictions of Preferred Stock: (1) Dividend Provisions: [Starting on [DATE]], the holders of the Preferred will be entitled to receive dividends [at the rate of [N]% of the Original Purchase Price] whenever funds are legally available and when and as declared by the Board. No dividend
EQUITY INVESTMENT
IN [NAME OF CORPORATION] /
AND STRATEGIC ALLIANCE
This term sheet summarizes the principal terms with respect to a potential private placement of equity securities of [NAME OF CORPORATION] (the “Company”) by [NAME OF INVESTOR] (“Investor”) and related strategic alliance. This term sheet is intended solely as a basis for further discussion and is not intended to be and does not constitute a legally binding obligation. No legally binding obligations will be created, implied, or inferred until a document in final form entitled “Series Stock Purchase Agreement,” is executed and delivered by all parties. Without limiting the generality of the foregoing, it is the parties intent that, until that event, no agreement shall exist among them and there shall be no obligations whatsoever based on such things as parol evidence, extended negotiations, “handshakes,” oral understandings, or courses of conduct (including reliance and changes of position). /
The Company and the Investor are discussing a private placement of shares of Preferred Stock on the following terms:
Amount of Investment: $[N] /
Valuation of the Company: $[N] Pre Money / on a fully diluted basis
$[N] Post Money on a fully diluted basis
Type of Security: Shares of the Company’s Series Preferred Stock (“Preferred”), convertible into shares of the Company’s Common Stock (“Common”).
Price Per Share: $[N] (“Original Purchase Price”).
Capitalization of the Company: The current capitalization of the Company is set forth in Exhibit 1, and the capitalization of the Company after this proposed financing is set forth in Exhibit 2. /
Rights, Preferences, Privileges and Restrictions of Preferred Stock: (1) Dividend Provisions: [Starting on [DATE]], the holders of the Preferred will be entitled to receive dividends [at the rate of [N]% of the Original Purchase Price] whenever funds are legally available and when and as declared by the Board. No dividend