Sample Term Sheets

1.    Variable Dividend Redeemable Preferred Stock (the “Demand Dividend”)

This is useful when structuring a transaction with an equity like investment, including a timed exit feature. When using this structure, it is important to consult with a tax accountant/attorney

2.    Loan (Promissory Note) Financing from a Foundation with Impact-triggered Default

This is useful when considering an investment from a Foundation in the form of a debt instrument with a balloon payment at the end of the term. Note that this includes an impact-triggered default provision.

3.    Redeemable Equity (redemption obligation)

This is useful when considering an investment structured with a timed redemption obligation, making part of the investment debt like with a potential equity kicker provision.

4.    Royalty Payment Convertible Note

Useful when considering a debt-like investment with a potential equity kicker provision.