Free Partnership Term Sheet Template

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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