Bridge Loan Term Sheet

I. Overview

This Term Sheet summarizes the principal terms and conditions of the Bridge Loan offered by [Your Name] to [Borrower's Name]. The purpose of this Bridge Loan is to provide interim financing until the borrower secures longer-term financing or reaches an agreed-upon financial milestone. This document serves as a preliminary agreement and will form the basis for the definitive loan documents.

It is intended to outline the structure of the loan, including the amount, interest rate, maturity term, and any other crucial terms pertinent to the agreement. The details in this Term Sheet are not exhaustive and are subject to further due diligence and negotiation between the parties involved.

II. Loan Details

• Loan Amount: The total amount of the loan will be [Loan Amount] [Currency].

• Interest Rate: The loan will carry a fixed interest rate of [Interest Rate]% per annum.

• Maturity Date: The loan will be fully payable on [Maturity Date], unless earlier converted or repaid.

• Repayment Terms: Interest to be paid quarterly with principal repayment at maturity.

III. Use of Proceeds

The proceeds from this Bridge Loan will be used exclusively for the following purposes: [Specific Use of Loan Funds]. This restriction is put in place to ensure that the funds are used in a manner that aligns with the strategic objectives of both the borrower and the lender, supporting [Your Company Name] in achieving specific, short-term financial goals.

Any deviation from the agreed use of funds will require prior written approval from [Your Name], and may result in a review or restructuring of loan terms. The borrower agrees to provide quarterly updates on the usage of the funds, supported by appropriate financial documentation.

IV. Warrant Coverage

If applicable, the lender will receive warrants covering up to [Percentage]% of the loan amount. These warrants can be exercised at a price calculated based on [Calculation Method]. This feature is intended to compensate the lender for the risk taken with respect to the bridge financing provided.

The terms governing the warrants including duration, exercise price, and any dilution protections will be described in detail in the final loan agreement. The inclusion of warrant coverage is negotiated to align the interests of [Borrower's Name] and [Your Name], providing an opportunity for the lender to participate in the upside potential of the borrower's business.

V. Covenants and Conditions

The Borrower agrees to adhere to the following covenants and conditions during the term of the loan:

• Maintain a minimum liquidity ratio of [Ratio].

• Provide monthly financial statements to the lender.

• Not incur additional indebtedness without the prior written consent of [Your Name].

VI. Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction]. Any dispute arising under or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts of [Jurisdiction].

VII. Binding Effect

This Term Sheet is intended to be a non-binding outline of the terms of the Bridge Loan, except for certain provisions such as confidentiality, governing law, exclusivity, and costs which shall be binding on all parties involved.

The completion of the transaction is subject to the execution of definitive agreements that fully detail all terms and conditions. Both parties agree to negotiate in good faith to finalize and execute the definitive agreements within [Negotiation Period] days from the date of this Term Sheet.

VIII. Signatories

The undersigned hereby agree to the terms and conditions set forth in this Bridge Loan Term Sheet:

[Your Name]

[Borrower's Name]

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