TERM SHEET
Company:
[__________], a Delaware corporation.
Securities:
Series A Preferred Stock of the Company (“Series A”).
Investment:
$[__] million from [__________] (“Lead Investor”)
Valuation:
$[__] million post-money valuation (fully-diluted, including all outstanding options, warrants, and convertible securities), including an available option pool equal to [__]% of the post-Closing capitalization.
Liquidation:
1x non-participating preference First pay 1x the Original Purchase Price plus declared and unpaid dividends on each share of Series A Preferred. A sale of all or substantially all of the Company’s assets will be treated as a liquidation.
Dividends:
6% noncumulative, payable if and when declared by the Board of Directors.
Voting Rights:
Approval of the Preferred Majority required to change rights, preferences or privileges of the Preferred Stock; change the authorized number of shares...
Drag-Along:
Founders, investors and 1% stockholders required to vote for a Company Sale approved by (i) the Board, (ii) the Preferred Majority and (iii) a majority of Common Stock...