Free Legal Term Sheet Layout Template

Legal Term Sheet Layout


1. Parties Involved

  • Company Name: [YOUR COMPANY NAME]

  • Company Address: [YOUR COMPANY ADDRESS]

  • Counterparty: Global Investments Inc.

  • Counterparty Address: New York, NY 10001

  • Date: January 15, 2062

  • Effective Date: February 1, 2062

  • Term Sheet Reference Number: TS-2062-001

2. Transaction Overview

  • Type of Transaction: Equity Investment

  • Purpose of Transaction: To raise capital for the expansion of [YOUR COMPANY NAME] into the Asia-Pacific market.

  • Transaction Value: $25,000,000 USD

3. Key Terms and Conditions

  • 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.

  • Closing Date: March 31, 2062

  • Payment Terms:

    • Initial payment of $10,000,000 USD upon execution of the definitive agreements.

    • Remaining $15,000,000 USD to be paid in two installments of $7,500,000 USD each, at 90 and 180 days post-closing.

  • Valuation: The pre-money valuation of [YOUR COMPANY NAME] is agreed at $150,000,000 USD.

  • Conditions Precedent:

    • Satisfactory completion of due diligence by Global Investments Inc.

    • Obtaining all necessary regulatory approvals.

    • Approval of the transaction by the Board of Directors of [YOUR COMPANY NAME] and Global Investments Inc.

4. Governance and Control

  • Board Composition: Post-transaction, Global Investments Inc. will have the right to appoint one director to the Board of Directors of [YOUR COMPANY NAME].

  • Voting Rights: Global Investments Inc. will have standard voting rights equivalent to its equity stake.

  • 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

  • By [YOUR COMPANY NAME]:

    • [YOUR COMPANY NAME] represents that it is duly organized, validly existing, and in good standing under the laws of its jurisdiction.

    • All financial statements provided are accurate and fairly represent the financial position of [YOUR COMPANY NAME] as of the date thereof.

    • [YOUR COMPANY NAME] has full authority to enter into this term sheet and consummate the transaction contemplated herein.

  • By Global Investments Inc.:

    • Global Investments Inc. represents that it is duly organized, validly existing, and in good standing under the laws of its jurisdiction.

    • Global Investments Inc. has the financial resources to fulfill its payment obligations under this term sheet.

    • Global Investments Inc. has full authority to enter into this term sheet and consummate the transaction contemplated herein.

6. Confidentiality and Exclusivity

  • 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.

  • 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

  • Termination Rights: Either party may terminate this term sheet if the conditions precedent are not met by March 15, 2062.

  • 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

  • Governing Law: This term sheet shall be governed by and construed in accordance with the laws of the State of New York, USA.

  • 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.

  • Amendments: Any amendments to this term sheet must be in writing and signed by both parties.

  • 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.

  • 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.

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