Angel Fundamentals: Understanding Equity Deal Terms - Introduction Note: This article is the second in an ongoing series on Early-Stage Deal Terms. To learn more about navigating term sheets and investment documents, download this free eBook today Understanding Early-Stage Deal Terms or purchase our books at Amazon.com . A Summary of Terms (often called a Term Sheet) like the one described below, should be created and agreed to before you make an equity investment in a private business. This document is the simplest way for the investor and issuer to understand the deal they are making, and the Term Sheet will be the basis upon which the other closing documents are drafted. This term sheet is intended by the parties to be nonbinding. Expenses: The Company will reimburse the holders of Series A Preferred Stock for reasonable legal fees in connection with the transaction, payable at closing and only in the event that the transactions contemplated by this term sheet are consummated, up to a limit of $25,000.