Company Background
This section of the term sheet details the entity status of the organization and its location of registration
What is the company definition/company section?
This provision prevents the term sheet from being altered without the appropriate consents
What is amendment?
Upon termination, parties have this degree of liability or obligation to any other party with respect to the CGAP Term Sheet
What is no further liability or obligation?
This provision should be solidified early on because it dictates how any term sheet clause disputes would be handled.
What is governing law/arbitration?
This is when shares are sold to a large number of people
What is a public offering?
This document describes the pre and post-subscription capital structure of a company
What is a capitalization table?
What is exclusivity?
These are the means by which you may terminate the CGAP Term Sheet
What is the mutual agreement of the parties or the inability of the parties to agree upon the definitive agreements?
This term sheet provision impacts everything from exchange controls, securities law, and regulatory approvals
What is governing law?
These rhyming rights allow shareholders to either join or force someone to join the sale of shares of the company
What are Tag-Along and Drag-Along rights?
This illustrates the dilutive effect of an equity offering on existing shareholders of the company
What is the capitalization table?
This (or these) provision(s) of the CGAP Term Sheet are binding
What is none of them?
These provisions will survive the termination of the CGAP Term Sheet
What are costs and confidentiality?
Local counsel should be consulted to clarify which types of these can be issued in a specific jurisdiction.
What are securities?
This is an important distinction between the Right of First Offer and the Right of First Refusal
What is the requirement of a third party purchase offer?