Free Term Sheet for Disposal of Shares

I. Introduction

This Term Sheet (the "Term Sheet") sets forth the terms and conditions for the proposed sale or transfer of shares (the "Shares") of [Your Company Name], a [Legal Structure] incorporated under the laws of [Jurisdiction] (the "Company"), from [Your Name] (the "Seller") to [Buyer Name] (the "Buyer"). The parties acknowledge that this Term Sheet is non-binding except as otherwise expressly provided herein.

II. Transaction Overview

1. Parties:

   • Seller: [Your Name]

   • Buyer: [Buyer Name]

   • Company: [Your Company Name]

2. Shares:

   • Number of Shares: [10,000]

   • Type of Shares: [Common Shares]

   • Percentage of Ownership: [20%]

3. Purchase Price:

   • Total Purchase Price: [$500,000]

   • Price per Share: [$50]

   • Payment Terms: [$250,000 cash at closing, $250,000 payable in monthly installments over 12 months]

III. Conditions Precedent

1. Due Diligence: The Buyer shall have the right to conduct due diligence on the Company and the Shares, satisfactory to the Buyer in its sole discretion.

2. Regulatory Approvals: The transaction shall be subject to obtaining all necessary regulatory approvals, including but not limited to approval by [Relevant Regulatory Authority].

IV. Representations and Warranties

1. Seller Representations: The Seller represents and warrants to the Buyer that:

   • The seller typically provides assurances regarding the ownership of assets, absence of undisclosed liabilities, compliance with laws, accuracy of financial statements, intellectual property rights, pending litigation, environmental compliance, and employee matters.

2. Buyer Representations: The Buyer represents and warrants to the Seller that:

   • Buyer representations and warranties typically cover their authority to transact, financial capability, legal compliance, no pending lawsuits, and due diligence acknowledgment. Additional representations might relate to their contractual capacity and specific agreed-upon terms.

V. Miscellaneous

1. Confidentiality: The parties shall keep confidential the terms of this Term Sheet and any information obtained in connection with the transaction, except as required by law or with the other party's prior written consent.

2. Governing Law: This Term Sheet shall be governed by and construed by the laws of [Jurisdiction].

VI. Execution

This Term Sheet may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute the same instrument.

VII. Dispute Resolution

Any dispute arising out of or in connection with this Term Sheet shall be finally settled under the Rules of Arbitration of [Arbitration Institution], by [Number of Arbitrators] arbitrator(s) appointed by the said Rules.

VIII. [KEYWORDS TO INCLUDE]

• [Keyword 1]

• [Keyword 2]

• [Keyword 3]

This Term Sheet is prepared for the convenience of the parties and is subject to further negotiation and agreement of definitive documentation.

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