Term Sheet for an Investor

---

Date: August 30, 2060

This Term Sheet (the “Term Sheet”) summarizes the principal terms of the proposed investment (the “Investment”) in [YOUR COMPANY NAME], a Delaware corporation (the “Company”). This Term Sheet is for discussion purposes only and does not constitute a binding agreement except for the sections titled "Confidentiality" and "Exclusivity".

1. Investment Overview

• Investor: Venture Capital Partners, LLC

• Company: [YOUR COMPANY NAME]

• Amount of Investment: $5,000,000

• Type of Security: Series A Preferred Stock

• Pre-Money Valuation: $20,000,000

• Post-Money Valuation: $25,000,000

2. Investment Terms

• Price per Share: $10.00

• Number of Shares/Notes: 500,000 shares

• Closing Date: September 30, 2060

• Use of Proceeds: Product development, marketing, and operational expansion

3. Equity Ownership

• Investor’s Ownership Percentage: 20%

• Total Outstanding Shares Post-Investment: 2,500,000 shares

• Investor’s Pro-Rata Rights: The Investor shall have the right to participate in future financings to maintain their percentage ownership

4. Dividend Rights

• Dividend Rate: 8% per annum

• Dividend Payment Schedule: Annually

• Dividend Priority: Cumulative

5. Liquidation Preference

• Liquidation Preference: 1x

• Participation Rights: Non-Participating

• Conversion Rights: Convertible into common stock at the option of the holder

6. Governance

• Board Representation: 1 seat on the Board of Directors

• Observer Rights: Right to attend Board meetings as a non-voting observer

• Veto Rights: Investor has veto rights on major corporate decisions including mergers, acquisitions, and issuance of new securities

7. Warrants and Options

• Warrants/Options Granted: 100,000 warrants

• Exercise Price: $12.00

• Vesting Schedule: 4 years with a 1-year cliff

8. Confidentiality and Exclusivity

• Confidentiality: All terms and conditions discussed herein shall remain confidential and shall not be disclosed to any third party without prior written consent from both parties.

• Exclusivity: The Company agrees not to seek investment from other parties for a period of 60 days from the date of this Term Sheet.

9. Conditions Precedent

• Due Diligence: Completion of investor due diligence by September 15, 2060

• Legal and Financial Approvals: Approval from the Company’s legal and financial advisors

• Contract Execution: Finalization of definitive agreements by September 30, 2060

10. Miscellaneous

• Governing Law: The Term Sheet and any related agreements shall be governed by and construed in accordance with the laws of the State of Delaware.

• Dispute Resolution: Any disputes arising from this Term Sheet shall be resolved through arbitration in Delaware.

---

Acceptance:

This Term Sheet is non-binding except for the Confidentiality and Exclusivity sections. It reflects the current understanding of the parties but is subject to the negotiation and execution of definitive agreements.

---

Investor Signature:

Date: August 30, 2060

---

[YOUR COMPANY NAME] Representative Signature:

Date: August 30, 2060

Term Sheet Templates @ Template.net