Term Sheet (Equity-Based)

Term Sheet (Equity-Based)

Prepared for:

[Investor Name]


Prepared by:

[Company Name]




Term Sheet

This Term Sheet (Equity-Based) (hereinafter referred to as the “Term Sheet”), is executed on the effective date [Date],


By and Between


The Company [Company Name], (hereinafter referred to as the “Company”), having its principal place of business at [Address], and;


The Investor [Investor Name], (hereinafter referred to as the “Investor”), having its principal place of business at [Address]


The Investor and the Company are collectively referred to as “Party” and “Parties” individually


WHEREAS both the Company and the Investor have entered into an agreement to make an offer or provide financing


NOW, THEREFORE, in consideration to the mutual covenants the Company and the Investor summarizes the proposed terms and conditions:

Term Sheet is as follows:

Issuer

[Name of the “Corporation”]

Nature of the offering

[Private Placement] of [Common Shares]

Type of Security

[Common Shares]

Offering Size

[Upto $0.00]

Commission

[%]

Capitalization

[$0.00]

Dividend

[Mention the dividend policy]

Preferential Liquidation Rights

[Mention the liquidation preferences]

Conversion Rights

[Mention if applicable]

Voting Rights

[Mention the voting rights]

Closing Conditions

[Closing the offerings shall be conditioned upon the completion of due diligence, execution of definitive agreements for the completion of the offering, etc.]

Closing Date

[Date]

Terms and Conditions

1. Arbitration

In the event of any dispute arising in and out of this Agreement between the Parties, it shall be resolved by Arbitration. There shall be [Number of Arbitrators] Arbitrators which shall be appointed by [Party Name]. The venue of Arbitration shall be [Venue/Location of Arbitration] and Seat shall be [State]. The Arbitrators’ decision shall be final and will be binding on both the Parties.

2. Miscellaneous

Severability: In the event, any provision of this Agreement is deemed to be invalid or unenforceable, in whole or part, that part shall be severed from the remainder of this Agreement, and all other provisions shall remain in full force and effect as valid and enforceable.

Governing Law: This Agreement shall be governed in all respects by, and be construed in accordance with, the laws of State of [State].

Notices: Any notices required or permitted by this Agreement shall be in writing and delivered by certified mail or courier to the above-mentioned address.

Entire Agreement: The Entire Agreement herein set forth by the Parties hereto is binding upon both the Parties.

Acceptance and Signature

IN WITNESS THEREOF, the Parties hereto have executed this Agreement as on the day and year mentioned above.

Investor Company

Signature

Assign signer 1


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