Promissory Investment Term Sheet

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I. Introduction

This Promissory Investment Term Sheet ("Term Sheet") outlines the terms and conditions of a promissory investment agreement between [Your Name] ("Investor") and [Borrower Name] ("Borrower"). This document serves as a preliminary agreement before the finalization of a formal investment contract. By agreeing to the terms laid out in this Term Sheet, both parties acknowledge their intent to proceed with the investment transaction.

II. Parties Involved

• Investor: The individual or entity providing the investment.

• Borrower: The individual or entity receiving the investment.

III. Investment Details

1. Investment Amount: The total amount of funds to be invested by the Investor.

2. Interest Rate: The annual interest rate applied to the principal amount of the investment, if applicable.

3. Repayment Terms: The schedule and method of repayment for the investment, including any installment payments or balloon payments.

4. Collateral: Any assets provided by the Borrower as security for the investment, if applicable.

5. Term of Investment: The duration of the investment agreement, specifying the start and end dates.

6. Prepayment: Conditions, if any, under which the Borrower may prepay the investment amount before the agreed-upon term.

IV. Representations and Warranties

• [Borrower] represents and warrants that:

  • They have the legal authority to enter into this investment agreement.

  • The information provided to the Investor is accurate and complete.

  • They have disclosed any existing liabilities or obligations that may affect their ability to fulfill the terms of this agreement.

• [Investor] represents and warrants that:

  • They have the legal authority to enter into this investment agreement.

  • They have the financial capacity to fulfill their obligations under this agreement.

  • They have conducted due diligence to their satisfaction regarding the investment opportunity presented by the Borrower.

V. Conditions Precedent

Before the investment transaction can proceed, certain conditions must be met, including but not limited to:

• Borrower providing all necessary legal documentation and financial statements.

• Investor receiving any required regulatory approvals or clearances.

• Any other conditions mutually agreed upon by both parties.

VI. Confidentiality

Both parties agree to keep confidential all information disclosed during the negotiation and execution of this investment agreement, except as required by law or with the written consent of the other party.

VII. Governing Law and Jurisdiction

This Term Sheet shall be governed by and construed by the laws of the [Jurisdiction]. Any disputes arising out of or in connection with this agreement shall be resolved through arbitration in [Arbitration Venue].

VIII. Signatures

This Term Sheet may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute the same instrument.

Investor:

[Your Name]

[Date Signed]

Borrower:

[Borrower's Name]

[Date Signed]

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