风险投资条款清单

InvestorTermSheetSUMMARYOFPRINCIPALTERMSOFSERIESBPREFERREDSTOCKFINANCINGOFXYZSTARTUP,INC.[Alternativetermsareinbrackets.]ThismemorandumsummarizestheprincipaltermsofaproposedSeriesBPreferredStockfinancingofXYZStartup,Inc.(theCompany):Issuer:XYZStartup,Inc.UniversityAvenuePaloAlto,California94301AmountofFinancing:$Security:sharesofSeriesBPreferredStockPrice:$pershare(OriginalPurchasePrice)Investor:(theInvestor)ExpectedClosingDate:,2000Post-ClosingCapitalizationSeriesAPreferredStockOutstanding:sharesSeriesBPreferredStockOutstanding:sharesCommonStockOutstanding:sharesCommonStockReservedforOptionstoEmployeesandConsultants:sharesofCommonStockreservedforoptionsorwarrantstoemployeesandconsultants,ofwhichweresubjecttooutstandingoptionsasof,2000.Thestandardvestingschedulefortheemployeestockoptionplanisfouryears,with25%ofoptionsharesvestinguponthefirstanniversaryofservice,andthebalancevestingonamonthlybasisovertheremainingthreeyears.InvestorTermSheet2Rights,Preferences,PrivilegesandRestrictionsofSeriesBPreferredStock.Generally:Comment:Dividendstypicallyrangefrom8%to10%oftheOriginalPurchasePrice.TheholdersofSeriesBPreferredStockshallhaverightsonparwiththeholdersofSeriesAPreferredStock.ThetermsdescribedhereinaresubstantiallyidenticaltothetermsagreedtointheCompany'sSeriesAPreferredStockfinancing.TheSeriesAPreferredStockandtheSeriesBPreferredStockaresometimesreferredtohereinasthePreferred.Dividends:TheholdersoftheSeriesAandSeriesBPreferredStockshallbeentitledtoreceivenoncumulativedividendsattherateof$and$,respectively,pershareperannumwhen,as,andifdeclaredbytheBoardofDirectors,priortoanypaymentofdividendsontheCommonStock.LiquidationPreference:Comment:Thisisasimpleparticipatingpreferred.AmodifiedversionmightgivetheholdersoftheCommonStockasetamountpersharebackbeforeallseriesshareratablyonanasconvertedbasis.(a)Intheeventofanyliquidation,dissolutionorwindingupoftheCompany,theholdersofPreferredshallbeentitledtoreceiveinpreferencetotheholdersofCommonStocktheamountof$pershareofSeriesAPreferredStockand[originalPurchasePrice]pershareofSeriesBPreferredStock.IfthefundstobedistributedtotheholdersofPreferredarenotsufficienttopermitpaymentinfulloftheforegoingliquidationpreference,thenallavailablefundsshallbedistributedratablyamongtheholdersofthePreferredinproportiontothepreferentialamounteachholderisotherwiseentitledtoreceive.Afterpaymentofsuchsum,theholdersoftheCommonStockandthePreferredshallshareprorataintheremainingproceeds(onanas-convertedbasis).[Afterpaymentofsuchsum,theholdersoftheCommonStockandthePreferredshallshareprorataintheremainingproceeds(onanasconvertedbasis)untilsuchtimeastheholdersofthePreferredStockhavereceivedatotalofthreetimestheliquidationpreferencepershareofPreferredthenheld(i.e.$________pershareofSeriesAand$pershareofSeriesB).Afterpaymentofsuchsum,theholdersofCommonStockshallreceivetheremainingproceedsonaproratabasis.]InvestorTermSheet3Comment:Possibletostructuresothatmergerorsalewon'tbetreatedasaliquidationifproceedsareinexcessofacertaindollaramount.(b)AconsolidationormergeroftheCompany(whereachangeofcontrolresults)orsaleofallorsubstantiallyallofitsassetsshallbedeemedtobealiquidation,dissolutionorwindingupforpurposesoftheliquidationpreference.Redemption:Comment:NotethatinsomecasesVCsmayseekredemptionrightssuchasthese.Notethatyouwillhavetoconsiderwhetherapartialredemptionwouldbeapossibledeemeddividendtreatmentfortaxpurposes.(iii)RedemptionatOptionofInvestor:Atelectionoftheholdersofatleast50%ofthePreferred,theCompanyshallredeem1/3ofthePreferredonthefifthanniversaryofClosing,1/3onthesixthanniversaryofClosing,eachataredemptionpriceequaltotheOriginalPurchasePrice[plusarateofreturnequalto10%peryearontheOriginalPurchasePrice]minustheamountofanydividendspreviouslypaidtoholdersofPreferred.Conversion:EachholderofthePreferredshallhavetherighttoconvertitsPreferred,attheoptionoftheholder,atanytime,intosharesofCommonStockoftheCompany.OneshareofPreferredshallinitiallybeconvertibleintooneshareofCommonStockbasedonaconversionpriceequaltotheOriginalPurchasePrice(ConversionPrice).TheConversionPricemaybeadjustedbasedoncertainevents.SeeAntidilutionProtectionbelow.AutomaticConversion:AlloutstandingPreferredshallbeautomaticallyconvertedintoCommonStockatthethenapplicableconversionrate,intheeventthattheholdersofatleast2/3ofthePreferredStockconsenttotheconversiontoCommonStockorupontheclosingofanunderwritten,registeredpublicofferingofsharesoftheCompanyatapublicofferingpricepersharenotlessthan$pershareandwhichresultsingrossproceedstotheCompanyofatleast$(QualifyingIPO).InvestorTermSheet4AntidilutionProtectionComment:Thisratchetislimiteduntiltheoccurrenceofaspecificevent;i.e.,raisingadditionalequityfundsataClosingaftertheFirstClosing.Thiscouldbestructuredtoapplyforaspecificperiod(oneortwoyearsinstead).Comment:Narrow-basedantidilutionformuladoesnottakeaccountofoutstandingwarrantsandoptionsforpurposesofdeterminingadjustment.ProportionaladjustmentsoftheSeriesAandSeriesBconversionrateswillbemadeforsplits,combinations,stockdividends,recapitalization