Term Sheet for Proposed Concession Agreement
I. Introduction
This Term Sheet outlines the preliminary terms under which [Your Company Name] (the "Grantor") and [Counterparty Name] (the "Concessionaire") will enter into a concession agreement. The purpose of this document is to serve as a framework for negotiations and provide a clear structure to the discussions about the concession. It identifies the key terms and conditions, responsibilities, and commitments that are expected from both parties.
The detailed terms following under this Term Sheet do not constitute a legally binding agreement; instead, they serve as a basis for the formal concession agreement to be drafted and signed by both parties upon reaching a mutual agreement.
II. The Concession Proposal
The proposal for the concession outlined below has been prepared to ensure that both the Grantor and the Concessionaire understand and agree upon the specific aspects of the concession. This section includes a description of the services and infrastructure involved, the geographical location, and the objectives of the concession.
Service and Infrastructure: [Details of the service and infrastructure]
Location: [Specify the location] where the concession activities will be carried out.
Objective: The primary goal of establishing this concession is [Specify the objective].
III. Duration of the Concession
The duration of the concession will be pivotal to both party's operations and financial planning. This section specifies the anticipated start and end dates for the concession, including any provisions for renewal.
Term: The concession will be granted for an initial term of [Number] years.
Start Date: The effective commencement date of the concession will be [Start Date].
Renewal: Terms and conditions for renewal or extension of the concession agreement.
IV. Financial Terms and Considerations
One of the most critical sections of this Term Sheet, the Financial Terms, outlines the financial responsibilities of the Concessionaire including, but not limited to, concession fees, revenue-sharing models, and any security deposits required. This part ensures fiscal clarity and accountability for both parties involved in the concession.
Item | Description | Amount |
|---|
Concession Fee | Annual fee paid by the Concessionaire to the Grantor | [Amount] |
Revenue Sharing | Percentage of revenue to be shared with the Grantor | [Percentage]% |
Security Deposit | Refundable deposit held against non-compliance with the concession terms | [Amount] |
V. Responsibilities and Obligations
Clear delineation of responsibilities and obligations ensures both parties are aware of their commitments. This section elaborates on the operational, maintenance, and legal responsibilities that the Concessionaire must assume and specifies the oversight roles of the Grantor.
The concessionaire will handle all operational responsibilities including staffing, management, and day-to-day activities.
Regular maintenance of the infrastructure and any necessary upgrades will be managed solely by the Concessionaire.
The Grantor will oversee the concession to ensure compliance with national standards and laws.
VI. Confidentiality
Both parties shall maintain the confidentiality of all information exchanged during the negotiation and execution of this agreement.
VII. Governing Law
This agreement shall be governed by and construed by the laws of [Jurisdiction].
VIII. Signatory Authority
To progress from this Term Sheet to a full concession agreement, both parties need to acknowledge their agreement with the preliminary terms outlined.
In witness whereof, the parties have executed this Term Sheet as of the date first written above.
[YOUR COMPANY NAME] (Grantor)
[DATE SIGNED]
[CONCESSIONAIRE NAME] (Conscessionaire)
[DATE SIGNED]
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