Term Sheet for Cooperation Agreement
Term Sheet for Cooperation Agreement
This Term Sheet outlines the terms by which [Your Company Name] and [Partner Company Name] (collectively referred to as "the Parties") agree to enter into a collaborative project. The purpose of this collaboration is to enhance business capabilities, share resources, and capitalize on mutual strengths of achieving specific, predefined objectives. This document serves as a preliminary agreement and will be superseded by more detailed contracts should the terms be accepted by all parties involved.
I. General Information
-
Date of Issue: [Date]
-
Project Title: [Project Title]
-
Term Sheet Prepared By: [Your Name], [Your Title] at [Your Company Name]
II. Parties Involved
-
Primary Contact for [Your Company Name]: [Your Name], [Contact Title], [Your Company Email], [Your Company Number]
-
Primary Contact for [Partner Company Name]: [Contact Name], [Contact Title], [Contact Email], [Contact Phone Number]
III. Project Description and Objectives
The collaborative project, titled [Project Title], is an initiative aimed at [Brief Description of Project Initiative]. The primary objectives of this collaboration are outlined as follows:
-
To combine resources to enhance the overall efficiency and market reach of both parties.
-
To develop new solutions or products jointly that cater to [Description of Target Market, Area].
-
To leverage each other's strengths in areas such as [Specify Areas such as technology, market distribution, customer service, etc.].
IV. Term of Agreement
The term of this collaborative agreement is set to commence on [Start Date] and will continue until [End Date] unless extended by mutual written consent of the Parties or terminated earlier as per the terms set out in this document. Both parties will review the collaboration’s success and potential extension no later than [Review Date].
V. Financial Terms and Capital Contributions
Each party’s financial contributions to the joint project are crucial for its initiation and continuation. Below are the agreed financial terms and contributions:
-
[Your Company Name] will contribute an amount of [Amount] representing [Percentage]% of the initial required capital.
-
[Partner Company Name] will contribute an amount of [Amount] representing [Percentage]% of the initial required capital.
Further financial provisions such as revenue sharing, funding for future phases of the project, and other financial responsibilities will be negotiated and detailed in the subsequent binding agreement.
VI. Governance and Management
This collaboration will be governed by a Joint Steering Committee consisting of representatives from both [Your Company Name] and [Partner Company Name]. The committee will oversee the project’s progress, make strategic decisions, and resolve any disputes that arise. Specific roles and responsibilities are as follows:
-
Committee Chair: [Chairperson’s Name], [Title and Company]
-
Regular meetings: Scheduled quarterly and more frequently if necessary, with rotating chairmanship.
VII. Intellectual Property
Any intellectual property developed during this collaboration will be jointly owned by the Parties, subject to the following conditions:
-
Usage rights of joint intellectual property will be equally divided among the Parties, with specific terms to be finalized in the definitive agreements.
-
Existing intellectual property owned by either party before this agreement shall remain the property of the original owner, with usage terms to be defined.
VIII. Confidentiality and Non-Disclosure
All information exchanged between the Parties during this collaboration will be considered confidential unless stated otherwise. A separate non-disclosure agreement will be executed to outline detailed provisions regarding confidentiality, use of confidential information, and penalties for breach of confidentiality.
IX. Termination
This Term Sheet may be terminated by either party giving [Notice Period] written notice to the other party. Termination before the end of the term will require a closure review of project achievements, financial settling, and responsibilities, ensuring fair closure practices are followed.
