 Term Sheet 
(Equity-Based)

Empty space

             PREPARED FOR
           [Investor Name] 

         PREPARED BY
        [Company Name] 

Term Sheet (Equity-Based)

This Term Sheet (Equity-Based) (hereinafter referred to as the “Term Sheet”) is executed on the effective date [Term Sheet Effective Date],
  
By and Between

[Company Name] (hereinafter referred to as the “Company”), having its principal place of business at[Company Address]; and

[Investor Name] (hereinafter referred to as the “Investor”) has its principal place of business at [Investor Address]. 

The Investor and the Company are individually referred to as the “Party” and the “Parties” collectively.

WHEREAS both the Company and the Investor have entered into an agreement to make an offer or provide financing;

NOW, THEREFORE, in consideration of the mutual covenants, the Company and the Investor summarize the proposed terms and conditions:

The Term Sheet is as follows:

Issuer: [Name of the Issuer]
 
Nature of the Offering: [Type of Offering] of [Type of Security]
 
Type of Security: [Type of Security]
 
Offering Size: [Maximum Offering Amount in USD]
 
Commission: [Commission in Percentage]
 
Capitalization: [Capitalization Amount in USD]
 
Dividend: [Dividend Policy]
 
Preferential Liquidation Rights: [Liquidation Preferences]
 
Conversion Rights: [Conversion Rights]
 
Voting Rights: [Voting Rights]
 
Closing Conditions: [Closing Conditions]
 
Closing Date: [Closing Date]

TERMS AND CONDITIONS.

1. ARBITRATION.

In the event of any dispute arising in and out of this Agreement between the Parties, it shall be resolved by arbitration. There shall be [Number of Arbitrators] arbitrator(s), which shall be appointed by [Arbitration Appointing Party Name]. The venue of arbitration shall be [Location of Arbitration],  and the Seat shall be [State of Seat]. The arbitrator(s)' decision shall be final and binding on both Parties.

2. SEVERABILITY.

In the event that any provision of this Agreement is deemed to be invalid or unenforceable, in whole or part, that part shall be severed from the remainder of this Agreement, and all other provisions shall remain in full force and effect as valid and enforceable.

3. GOVERNING LAW.

This Agreement shall be governed in all respects by and construed in accordance with the laws of the State of [Governing Law]. 

4. NOTICES.

Any notices required or permitted by this Agreement shall be in writing and delivered by certified mail or courier to the above-mentioned address.

5. ENTIRE AGREEMENT.

The entire agreement herein set forth by the Parties hereto is binding upon both Parties.

ACCEPTANCE AND SIGNATURE.

IN WITNESS THEREOF, the Parties hereto have executed this Agreement as on the day and year mentioned above.

[Investor Name] 						                           [Company Name] 
Name:                                                    				Name:   
Signature:                                                   			Signature:
Date:                                                   				Date:  

Term Sheet (Equity-Based) Template

Draft equity investment terms clearly with an equity-based term sheet. Mention key conditions, investor rights, and equity distribution. Ensure transparency and alignment in funding agreements.

Start creating at $59/document or $99/year for unlimited documents

Fill your responses and complete your document

Personalize with a rich editor

eSign document easily and securely

Related templates

Series A Term Sheet

Outline your startup's funding process with a series A term sheet. Detail investor rights, valuation, equity distribution, and exit strategies to ensure smooth relations between the company and its investors.

Venture Capital Term Sheet

Use a venture capital term sheet to clearly draft investment terms, equity structure, and other conditions. Facilitate successful funding agreements and align interests between investors and startups.

ATTORNEY ADVERTISEMENT: Attorneys advertised on this site are independent attorneys. in your area who’s responsible for this advertisement. LegalZoom.com, Inc. is not an "attorney referral service" or a law firm. The information you provide to LegalZoom is not protected by attorney-client privilege. about this advertisement if you live in Alabama, Missouri, or New York.