Indicative Term Sheet

Summary

This precedent is a form of term sheet, outlining type of securities to be acquired, price per security and effective ownership of investor in company upon closing, conditions to closing, shareholder rights (board rights, pre-emptive rights, liquidity rights, registration rights, etc.), costs and expenses, timing, and use of proceeds and any restrictions on the funds once transaction is closed. This precedent includes practical guidance and drafting notes. A term sheet is a document that will, in point form and generally simple language, outline the material terms and conditions of a business deal. It allows the parties to reach a consensus before incurring the time and expense of drafting comprehensive documentation and otherwise completing the conditions precedent to closing. A properly drafted term sheet eases subsequent negotiations and simplifies the drafting of definitive documentation. For more information on private equity and venture capital transactions see practice notes ...