Free Legal Term Sheet Layout Template
Legal Term Sheet Layout
1. Parties Involved
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Company Name: [YOUR COMPANY NAME]
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Company Address: [YOUR COMPANY ADDRESS]
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Counterparty: Global Investments Inc.
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Counterparty Address: New York, NY 10001
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Date: January 15, 2062
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Effective Date: February 1, 2062
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Term Sheet Reference Number: TS-2062-001
2. Transaction Overview
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Type of Transaction: Equity Investment
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Purpose of Transaction: To raise capital for the expansion of [YOUR COMPANY NAME] into the Asia-Pacific market.
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Transaction Value: $25,000,000 USD
3. Key Terms and Conditions
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Structure of Transaction: The transaction will involve the purchase of newly issued common shares of [YOUR COMPANY NAME], representing a 15% equity stake post-transaction.
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Closing Date: March 31, 2062
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Payment Terms:
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Initial payment of $10,000,000 USD upon execution of the definitive agreements.
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Remaining $15,000,000 USD to be paid in two installments of $7,500,000 USD each, at 90 and 180 days post-closing.
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Valuation: The pre-money valuation of [YOUR COMPANY NAME] is agreed at $150,000,000 USD.
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Conditions Precedent:
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Satisfactory completion of due diligence by Global Investments Inc.
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Obtaining all necessary regulatory approvals.
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Approval of the transaction by the Board of Directors of [YOUR COMPANY NAME] and Global Investments Inc.
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4. Governance and Control
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Board Composition: Post-transaction, Global Investments Inc. will have the right to appoint one director to the Board of Directors of [YOUR COMPANY NAME].
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Voting Rights: Global Investments Inc. will have standard voting rights equivalent to its equity stake.
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Management Rights: Global Investments Inc. will have the right to participate in major strategic decisions, including mergers, acquisitions, and capital restructuring.
5. Representations and Warranties
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By [YOUR COMPANY NAME]:
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[YOUR COMPANY NAME] represents that it is duly organized, validly existing, and in good standing under the laws of its jurisdiction.
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All financial statements provided are accurate and fairly represent the financial position of [YOUR COMPANY NAME] as of the date thereof.
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[YOUR COMPANY NAME] has full authority to enter into this term sheet and consummate the transaction contemplated herein.
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By Global Investments Inc.:
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Global Investments Inc. represents that it is duly organized, validly existing, and in good standing under the laws of its jurisdiction.
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Global Investments Inc. has the financial resources to fulfill its payment obligations under this term sheet.
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Global Investments Inc. has full authority to enter into this term sheet and consummate the transaction contemplated herein.
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6. Confidentiality and Exclusivity
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Confidentiality Clause: Both parties agree to keep the terms of this transaction and all related discussions confidential, except as required by law or for the purpose of obtaining necessary approvals.
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Exclusivity Period: The parties agree to a 90-day exclusivity period from the date of this term sheet, during which neither party will negotiate or enter into discussions with any third party regarding a similar transaction.
7. Termination
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Termination Rights: Either party may terminate this term sheet if the conditions precedent are not met by March 15, 2062.
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Effect of Termination: Upon termination, all obligations under this term sheet shall cease, and each party shall return any confidential information received from the other party.
8. Miscellaneous Provisions
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Governing Law: This term sheet shall be governed by and construed in accordance with the laws of the State of New York, USA.
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Dispute Resolution: Any disputes arising out of or in connection with this term sheet shall be resolved through binding arbitration under the rules of the American Arbitration Association.
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Amendments: Any amendments to this term sheet must be in writing and signed by both parties.
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Binding Nature: This term sheet is non-binding, except for Sections 6 (Confidentiality and Exclusivity), 7 (Termination), and 8 (Miscellaneous Provisions), which are binding on the parties.
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Notices: All notices under this term sheet shall be in writing and delivered to the addresses provided above, either by hand delivery, certified mail, or email with confirmed receipt.
Note: This Term Sheet is intended to outline the basic terms and conditions of the proposed transaction between the parties. It does not constitute a legally binding agreement, except for the sections specifically stated as binding. The final terms will be subject to the negotiation and execution of definitive agreements.