FORM OF SERIES A TERM SHEETEN文档格式.docx

FORM OF SERIES A TERM SHEETEN文档格式.docx

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Amount

US$ 

intotal

Structure;

Securities

TheInvestorwillpurchasecertainnumberofSeriesAPreferredSharesnewlyissuedbytheCompanythatrepresent 

%ofthesharecapitaloftheCompanyonafully-dilutedandas-convertedbasisimmediatelyfollowingtheconsummationofthetransactioncontemplatedhereby.

Valuation

Afully-dilutedpre-moneyvaluationofUS$ 

（includinganyandallsharesreservedundertheCompany’semployeestockoptionplan）andafully-dilutedpost-moneyvaluationof$ 

.ThecapitalizationtableoftheCompanyissetforthon 

ScheduleII 

attachedhereto.

BridgeLoan

LoanAmount

TheInvestorwillpurchasecertainconvertiblepromissorynote（the“Note”）withanaggregateprincipalamountofUS$ 

.

TermsofNote

ThekeytermsofeachNoteareasfollows:

1.Maturitydate:

monthsaftertheclosingoftheNotefinancing（the“NoteClosing”）;

2.Interest:

simpleinterestof 

%perannum（zerointerestiftheNoteisconvertedintoSeriesAPreferredShares）;

interestincreasedto 

%perannumuponoccurrenceofaneventofdefault;

3.Noprepaymentisallowed;

4.Security:

pledgeofnolessthan 

%equityinterestheldbytheFoundersintheCompany[andtheDomesticCompany];

FoundersandtheCompanyshallbejointlyandseverallyliablefortheobligationsundertheNote;

5.Conversion:

EachholderoftheNoteshallhavetheright（butnottheobligation）toconvertall（oranypartof）oftheoutstandingprincipalamountoftheNote（and,ifsoelectedbysuchholder,anyinterestaccruedthereon）intoSeriesAPreferredSharesupontheClosingatapershareconversionpriceequalto（i） 

%ofthepersharepurchasepricefortheSeriesAPreferredShares（the“PerSharePrice”）iftheClosingisconsummatedwithin 

daysoftheNoteClosing,or（ii） 

%ofthePerSharePriceiftheClosingisconsummateduponorafterdays 

oftheNoteClosing;

6.Customaryeventsofdefaultincludingcustomarycrossdefaultprovisions.

SharesPurchaseAgreement

RepresentationandWarrantie

TheGroupCompaniesandtheFounderswillmakecustomaryrepresentations,warranties,covenantsandindemnificationsonajointandseveralbasis.

Useof

Proceeds

Theproceedswillbeusedfor[productresearchanddevelopment,businessexpansion,andworkingcapital]andotherpurposesasagreedbytheInvestor.

Closing

Conditions

1.EstablishmentofanappropriatelegalandbusinessstructureacceptabletotheInvestorfortheCompany’soperations,including（i）theexecutionofasetofcustomaryControlDocuments（asdefinedbelow）and（ii）thedesignationofanInvestornomineetoholdupto 

%equityinterestintheDomesticCompany;

2.Executionoflaborcontract,inventionassignment,confidentiality,non-competeandnon-solicitationagreementbytheFoundersandKeyEmployeesasagreedbytheInvestorwiththeapplicableGroupCompany;

3.ExecutionofdirectorindemnificationagreementbetweentheCompanyandthedirectorappointedbytheInvestor（the“InvestorDirector”）;

4.ExecutionofacustomarymanagementrightsletterinfavouroftheInvestor;

5.ApprovaloftransactionbytheInvestor’sinvestmentcommittee;

6.Completionofbusiness,finance,andlegalduediligencebytheInvestoranditsadvisorstotheirsatisfaction;

7.Allnecessaryapprovalsandconsentshavingbeenobtainedfromexistingshareholders,partiesandrelevantgovernmentauthorities;

8.Issuanceofrelevantlegalopinions;

9.Nomaterialadverseeffect;

10.Submissionofadetailedbusinessplanandbudgetforthe[twelvemonths]followingtheClosingwhichisacceptabletotheInvestor;

11.Executionofrelevanttransactiondocuments（includingwithoutlimitationShareholdersAgreement,MemorandumandArticlesandShareRestrictionAgreementetc.）andsatisfactionofconditionsprecedentcontainedtherein;

12.RepresentationsandwarrantiesoftheGroupCompaniesandtheFoundersbeingtrue,accurateandcompleteasoftheClosing;

13.OtherclosingconditionsidentifiedintheInvestors’duediligenceorotherwisegenerallyapplicabletosimilartransactions.

Covenants

TheCompanywillprovideongoingcovenantsto（i）complywiththeUSForeignCorruptPracticesAct,（ii）useofcommerciallyreasonableeffortstoavoidPFICstatusandminimizetheeffectsofCFCandPFICstatustotheextenteitheroccurs,（iii）complywithPRClawinallmaterialrespects,including,without

limitation,SAFECircular37andSAFECircular7,（iv）fileandrgisteranyequitypledgeascontemplatedbythetransactiondocumentswiththecompetentgovernmentalauthorities,and（v）takesuchotheractionsasmayreasonablybedeemednecessarybytheInvestorbasedonitsduediligence.

MemorandumandArticles

Rightsand

Preferences

ofSeriesA

Preferred

Shares

TheSeriesAPreferredSharesshallhavetherightsandpreferencesassetforthin 

ScheduleI 

heretowhichwillbesetforthintheCompany’smemorandumofassociationandarticlesofassociation.

ShareholdersAgreement

Boardof

Directors

TheBoardofDirectorsoftheCompanyshallconsistof 

directors.TheInvestorshallhavetherighttodesignateatleast 

directors（and[1]observer）.TheboardofdirectorsofanyotherGroupCompanyshallbesimilarlycomposed.

Pre-emptive

RightstoNew

Issuances

AnyholderofSeriesAPreferredShareswillhaveapreemptiverighttopurchaseuptoitsproratashare（basedonitspercentageofoutstandingOrdinarySharesonanas-if-convertedbasis）ofanysecuritiesofferedbytheCompany（subjecttocustomaryexemptions）onthesameprice,termsandconditionsastheCompanyproposestooffersuchsecuritiestootherpotentialinvestors,witharightofoversubscriptionifanyholderofSeriesAPreferredShareselectsnottopurchaseitsfullproratashare.

Information

andInspection

Rights

AnyholderofSeriesAPreferredSharesshallreceive（a）auditedannualconsolidatedfinancialstatementswithin120daysafterthefiscalyear-end,（b）unauditedquarterlyfinancialstatementswithin45daysfromfiscalquarter-end,（c）unauditedmonthlyfinancialstatementswithin30daysfromfiscalmonth-end,（d）annualbudgetandbusinessplanforthefollowingfiscalyearatleast30dayspriortothepriorfiscalyear’send,and（e）otherinformationinrelationtotheoperationandfinancialsoftheGroupCompaniesreasonably

requestedbyaholderofSeriesAPreferredShares.TheGroupCompaniesshallinformeachholderofSeriesAPreferredSharesofanyinformationthatcouldhavematerialadverseeffecttothebusiness,operation,inancial,andprospectoftheGroupCompanieswithintwodaysofreceivingsuchinformation.EachholderofSeriesAPreferredShareswillalsobegrantedwithcustomaryinspectionrightsincludingaccesstoCompanyfacilitiesandpersonnelduringnormalbusinesshoursandwithreasonableadvancenotification.

Transfer

Restrictions;

ROFR/Co-Sale

UnlessotherwiseapprovedbytheInvestor,theFoundersandotherholdersofOrdinaryShares（excludingholdersofOrdinarySharesthathavebeenconvertedfromanySeriesAPreferredShares）（the“OrdinaryShareholders”）（ifany）maynotsell,assign,transfer,pledge,hypothecate,orotherwisegrantanyinterestorrightwithrespecttoanyandalloftheirOrdinaryShares（whetherowneddirectlyorindirectlythroughaholdingentity,specialpurposevehicle,etc.）exceptforbonafideestateplanningpurposesortransfertoanotherentitywhollyownedbytheFounderspriortotheQualifiedIPO,providedthattheFoundersandotherOrdinaryShareholdersshallremaintobeboundbyrelatedagreementsandremainliableforanybreachbythepermittedtransfereeofanyprovisionunderrelatedagreementsandthepermittedtransfereeshallagreetobeboundbyrelatedagreements.

TheOrdinarySharesoftheCompany’ssecuritiesheldbytheFoundersandotherOrdinaryShareholders（ifany）aresubjecttotheholdersofSeriesAPreferredShares’rightoffirstrefusalandco-saleright（withcertaincustomaryexceptions）suchthattheFoundersandotherOrdinaryShareholdersmaynotsell,transferorexchangetheirOrdinaryShare（whetherowneddirectlyorindirectlythroughaholdingentity,specialpurposevehicle,etc.）unlesseachholderofSeriesAPreferredShareshasanopportunitytoeitherpurchasetheshares（witharightofoverallotmentifanyholderofSeriesAPreferredShareselectsnottopurchaseitsfullproratashare）onapro-ratabasis（calculatedbasedonthenumberofOrdinarySharesheldbytherelatedholdersofSeriesAPreferredSharesonanasconvertedbasis）orparticipateinthesaleonapro-ratabasis（calculatedbasedonthenumberofOrdinarySharesheldbytherelatedholdersofSeriesAPreferredSharesandthetransferringFounderorotherOrdinaryShareholdersonanasconvertedbasis）.

Registration

CustomaryregistrationrightsforU.S.capitalmarket（includingnolessthan2demandregistrationrightsandunlimitedFormF-3/S-3andpiggybackregistrationrights）andsimilarrightsforothercapitalmarkets.Theregistrationrightsshallterminatedupontheearlierof（a）whenallsharesofanInvestorareeligibletobesoldwithoutrestrictionunderRule144and（b）the5thanniversaryoftheCompany’sIPO.

Employee

StockOption

Plan

ImmediatelypriortotheClosing, 

%oftheCompany’sfully-dilutedsharecapitalwillbereservedforissuancepursuanttotheCompany’semployeestockoptionplantobeadoptedaftertheClo