Corporation Term Sheet

I. Overview

This Term Sheet outlines the principal terms and conditions proposed for the investment in [Your Company Name] by [Investor's Name]. The purpose of this document is to serve as a basis for a more detailed and legally binding agreement. All terms mentioned here are preliminary and subject to diligence and negotiation.

[Your Company Name], hereafter referred to as "The Company", is seeking investment to accelerate its growth, expand its market reach, and enhance product offerings. The investment will finance [specific objectives, such as software development, increasing manpower, marketing strategies, etc.].

II. Investment Terms

The following terms outline the potential financial arrangements between [Investor's Name] and [Your Company Name]. This financing round is intended to position the company for rapid growth and value creation for all shareholders.

• Valuation of [Your Company Name]: Pre-money valuation to be [Amount] and a post-money valuation including the total investment.

• Investment Amount: [Investor's Name] will invest [Investment Amount] in exchange for a [Percentage]% equity stake in the company.

• Type of Security: Preferred Stock / Common Stock / Convertible Note (Choose as appropriate).

• Voting Rights: Investors holding preferred shares will have [specify voting rights] on major corporate decisions.

• Anti-Dilution Provisions: Include standard anti-dilution protections.

• Liquidation Preferences: [Ratio]x return on initial investment before any distributions to common shareholders.

III. Use of Funds

The raised capital through this investment will be rigorously allocated to facilitate the company’s growth and operational objectives. Detailed use of funds includes, but is not limited to, the areas listed below:

• Product Development: Enhancements to existing products and development of new offerings estimated at [Amount].

• Marketing and Sales: Expansion of marketing and sales team, online marketing campaigns, and promotional activities estimated at [Amount].

• Operational Expenses: General and administrative expenses including HR, legal, and rent estimated at [Amount].

IV. Conditions Precedent to Financing

This investment is contingent upon the completion of satisfactory due diligence, legal review, and agreement on definitive documents by both parties. The specific conditions precedent include:

• Due Diligence: Completion of financial, legal, and technical due diligence to the satisfaction of [Investor's Name].

• Board Approval: Approval of the investment terms by the Board of Directors of [Your Company Name].

• Legal Documentation: Execution of a Stock Purchase Agreement, Investor Rights Agreement, and other related documentation.

V. Exclusivity and Confidentiality

Upon acceptance of these terms, [Your Company Name] agrees to grant an exclusivity period to [Investor's Name] for a duration of [time frame], during which the company will not solicit or entertain offers from other potential investors. The information disclosed during due diligence and negotiations is to be treated as confidential between the involved parties.

Both parties agree to conduct all proceedings with as much transparency and good faith as the due diligence process demands. Sharing of sensitive and confidential data will be done under a non-disclosure agreement which both parties will respect and uphold beyond the terms of this negotiation and potential partnership.

VI. Miscellaneous

This Term Sheet is non-binding and is intended solely as a basis for further negotiation between the parties. Neither party will have any obligation under this sheet except regarding exclusivity and confidentiality.

The final terms of the investment will be detailed in subsequent definitive agreements which will supersede this Term Sheet in contents and become the binding agreement between the parties upon execution.

[Your Company Name]

[DATE SIGNED]

[Investor's Name]

[DATE SIGNED]

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