Free Partnership Term Sheet

I. Introduction

This Partnership Term Sheet ("Term Sheet") sets forth the key terms and conditions governing the proposed partnership between [Your Company Name] ("Company") and [Partner Company Name] ("Partner"). The Term Sheet is intended to serve as a preliminary agreement to facilitate further negotiations toward a formal partnership agreement.

II. Partnership Details

1. Parties:

   • [Your Company Name]: A leading technology firm specializing in software development.

   • [Partner Company Name]: A renowned consulting company offering strategic business solutions.
     

2. Purpose of Partnership:

   The parties intend to collaborate on developing a new software product for the healthcare industry.
   

3. Duration:

   The partnership shall commence on April 30, 2050, and shall continue until terminated as per the terms outlined herein.

III. Key Terms

• Capital Contributions:

1. [Your Company Name]: Will contribute $100,000 in cash and provide technical expertise.

2. [Partner Company Name]: Will contribute $50,000 in cash and assist with market research.
   

• Ownership and Governance:

  The ownership and governance structure of the partnership shall be as follows:
  

1. [Your Company Name]: 60% ownership and governance rights.

2. [Partner Company Name]: 40% ownership and governance rights.
   

• Responsibilities and Obligations:

  [Your Company Name] will lead software development, while [Partner Company Name] will focus on market analysis and client acquisition.

IV. Financial Terms

1. Profit Sharing:

   • Profits generated from the partnership shall be shared as per the following arrangement:
     

     • [Your Company Name]: 70% of profits.

     • [Partner Company Name]: 30% of profits.
       

2. Expenses:

   Both parties shall equally share expenses related to software development and marketing.
   

3. Financial Reporting:

   Financial reports shall be provided quarterly, including revenue, expenses, and profit distribution details.

V. Termination

1. Termination Events:

   The partnership may be terminated upon mutual agreement or due to a material breach of the Term Sheet.
   

2. Effect of Termination:

   Upon termination, assets and liabilities shall be divided as per the partnership agreement.

VI. Miscellaneous

1. Confidentiality:

   • Both parties shall maintain the confidentiality of all proprietary information shared during the partnership.
     

2. Governing Law:

   • This Term Sheet shall be governed by and construed in accordance with the laws of [Jurisdiction].

VII. Signatures

Executed by the parties on the date first above written.

[Your Name]
[Your Title]
[Your Company Name]

[Partner Name]
[Partner Title]
[Partner Company Name]

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