Sovereign Prime

Term Sheet

Date: [Insert Date]

This Term Sheet (“Agreement”) outlines the terms and conditions between [Your Name], hereinafter referred to as the “Founder,” and potential shareholders of Sovereign Prime, a [description of business], hereinafter referred to as the “Company.”

1. **Founder Ownership**: The Founder shall retain 51% equity ownership in Sovereign Prime. This ensures that the Founder maintains controlling interest and decision-making authority over the direction and management of the brand.

2. **Shareholders’ Equity Allocation**: The remaining 49% equity shall be allocated to shareholders who invest in Sovereign Prime. 

3. **Dilution in Future Rounds**: Shareholders’ equity ownership may be diluted in subsequent rounds of capital raising as necessary for the growth and expansion of the Company. 

4. **Voting Rights**: The Founder shall retain voting rights proportionate to their equity ownership. Shareholders shall have voting rights commensurate with their respective equity stakes.

5. **Board Representation**: The Founder shall have the right to appoint a majority of the board members, ensuring alignment with the Founder’s vision and strategic direction for Sovereign Prime.

6. **Pre-emptive Rights**: Shareholders shall have pre-emptive rights to maintain their ownership percentage in future rounds of financing, subject to terms and conditions to be outlined in future agreements.

7. **Liquidation Preference**: In the event of a liquidation event, proceeds shall be distributed first to the Founder in proportion to their ownership percentage, with the remaining proceeds distributed among shareholders.

8. **Confidentiality**: All parties agree to keep the terms and details of this Agreement confidential, except as required by law.

9. **Governing Law**: This Agreement shall be governed by and construed in accordance with the laws of [jurisdiction].

10. **Execution**: This Agreement shall be deemed effective upon execution by the Founder and shareholders.

[Signature of Founder]             [Date]

[Signature of Shareholder]         [Date]

[Signature of Shareholder]         [Date]

[Signature of Shareholder]         [Date]

[Signature of Shareholder]         [Date]

[Signature of Witness]             [Date]

Note: This is a simplified term sheet and may need to be reviewed and modified by legal counsel to ensure compliance with relevant laws and regulations.