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Dictionary by pitch.dog
Term-sheet control & investor rights · Working

Expenses provision

Also called: transaction expenses

ELI5

A rule saying who pays deal costs.

Used in conversation

“The company capped reimbursable investor expenses.”

Definition

A term allocating legal, diligence or transaction costs between parties.

Here “Expenses provision” means: A term allocating legal, diligence or transaction costs between parties.

Pitch context

You will see “Expenses provision” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches term-sheet control & investor rights.

Why it matters: In term-sheet control & investor rights, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.