A term sheet is a document that details the material terms and conditions of a business transaction or agreement, usually in bullet-point format. It is important to note that a term sheet is not an agreement in and of itself, may not be binding, and yet is usually unenforceable. Term sheets serve in part a as a guide for legal counsel as they move toward a final agreement. Term sheets are similar to yet distinct from Letters of Intent, which are usually in a letter format versus a bullet point list; both serve as a preliminary record of a proposed business transaction.
The most common area of business wherein one needs term sheets is in the arena of venture capital financing (such investments often begin with circulating a term sheet) and startup companies. In this context, term sheets will usually include the following information:
(a) amount raised,
(b) price per share,
(c) pre-money valuation,
(d) liquidation preference,
(e) voting rights,
(f) anti-dilution provisions, and
(g) registration rights.
RealDealDocs offers the following types of term sheets: Term Sheets, RE Term Sheets, M&A Term Sheets, Stock Purchase Term Sheets, and Acquisition of Rights Term Sheets.
Here are 3 actual term sheets currently available on RealDealDocs:
1) Erickson Air-Crane Incorporated Signs Binding Term Sheet Regarding Its Acquisition of the HRT Air Services Business
ERICKSON AIR-CRANE INC
Erickson Air-Crane Incorporated
INDYMAC RESIDENTIAL MORTGAGE-BACKED TRUST
SERIES 2005-L3 MORTGAGE-BACKED CERTIFICATES, SERIES 2005-L3
INDYMAC ABS INC
3) TERMS OF THE AMENDED AND RESTATED EQUITY GRANT PROGRAM FOR NONEMPLOYEE DIRECTORS UNDER THE BLUCORA, INC. RESTATED 1996 FLEXIBLE STOCK INCENTIVE PLAN