Monetization Term Sheet
1. Overview of Agreement
This Monetization Term Sheet ("Term Sheet") is intended to outline the principal terms and conditions between [YOUR COMPANY NAME] ("Company") and [PARTNER COMPANY'S NAME] ("Partner") concerning the monetization strategies including, but not limited to, revenue sharing, licensing, and other commercialization efforts. This document acts as a preliminary agreement designed to lead toward a comprehensive monetization contract.
The purpose of this Term Sheet is to provide an actionable framework for the effective utilization of assets owned by the Company, to enhance revenue streams while complying with applicable laws and regulations. Both parties agree that this Term Sheet is non-binding except for the sections explicitly described as binding, such as confidentiality and exclusivity.
2. Definitions
In the context of this Term Sheet, the following terms shall have the indicated definitions:
Confidential Information: Refers to any data or information, oral or written, treated as confidential that a party might obtain from the other party during the term of their agreement.
Intellectual Property: Includes, but is not limited to, all inventions, designs, software, trademarks, and patents owned by either party.
Revenue: Means all income that accrues from the sale of products or provision of services directly related to the commercial use of the agreed assets.
3. Monetization Strategies
This Term Sheet proposes a variety of strategies for monetization under the terms set forth herein:
Licensing: [YOUR COMPANY NAME] agrees to grant [PARTNER COMPANY'S NAME] a non-exclusive, revocable license to use the specified assets to generate revenue.
Revenue Sharing: All revenues resulting from the licensed rights will be distributed between the Company and the Partner based on a predetermined ratio.
Direct Monetization: This may involve the direct sale of products, subscription services, or other direct revenues from the asset itself.
The effective strategies will be contingent on the mutual agreement of detailed terms which will be formulated during subsequent negotiations.
4. Financial Terms
The financial arrangements as proposed in this Term Sheet are outlined as follows:
Initial Payment: An initial payment of $10,000 paid by [PARTNER COMPANY'S NAME] to [YOUR COMPANY NAME] upon the execution of this Term Sheet to cover initial assessment and set-up costs.
Revenue Share: Revenue generated from the monetization efforts will be split 70% to the Company and 30% to the Partner, calculated quarterly.
Both parties agree that all payments will be made by the terms set out in the final agreement, and any payment disputes will be handled as stipulated under the governing law clause of the finalized contract.
5. Confidentiality
Both parties agree to maintain the confidentiality of the Confidential Information disclosed during the negotiation and the term of the agreement, binding during the term of the Term Sheet and for 3 years thereafter. Disclosure of information shall require prior written consent from the non-disclosing party unless required by judicial or governmental order.
Exceptions to this obligation include information that is publicly known or independently developed by a party outside of this agreement's scope, provided that the independent development can be verified by written records.
6. Exclusive Negotiation Rights
For 90 days, [YOUR COMPANY NAME] agrees to negotiate exclusively with [PARTNER COMPANY'S NAME] regarding the potential monetization strategies outlined in this Term Sheet. This exclusivity will allow both parties to conduct due diligence and negotiate a definitive agreement without distractions from third-party negotiations.
It is understood that following the expiry of the exclusivity period if no definitive agreement is reached, both parties are free to pursue other opportunities unless mutually agreed upon otherwise.
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