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1. Letter Header: Date, recipient's name and address, sender's details, and reference number if applicable
2. Subject Line: Clear identification of the transaction or business relationship being proposed
3. Introduction: Identification of all parties involved and their roles
4. Purpose and Scope: Clear statement of the business intention and scope of the proposed transaction or relationship
5. Key Terms: Outline of the fundamental business terms, including proposed transaction structure, pricing, or key deliverables
6. Timeline: Proposed schedule for negotiation, due diligence, and completion of the definitive agreement
7. Confidentiality: Statement regarding the confidential nature of discussions and any existing NDAs
8. Non-Binding Nature: Clear statement about which provisions are non-binding, typically including the main commercial terms
9. Binding Provisions: Specification of which provisions are binding (typically confidentiality, exclusivity if applicable, governing law, and costs)
10. Closing: Signature blocks, acceptance acknowledgment, and contact details for further communication
1. Exclusivity: Used when parties want to negotiate exclusively for a specified period
2. Break Fee: Include when there's a need to specify compensation if either party withdraws from negotiations
3. Due Diligence: When preliminary access to information or documentation is required
4. Cost Allocation: Used when there's a need to specify how costs and expenses will be handled during the negotiation phase
5. Good Faith Obligation: When parties want to emphasize the commitment to negotiate in good faith
6. Regulatory Approvals: Include when the proposed transaction may require regulatory clearances
7. Public Announcements: When there's a need to control public communications about the potential transaction
1. Term Sheet: Detailed outline of key commercial terms and conditions being proposed
2. Timeline Schedule: Detailed breakdown of proposed milestones and deadlines
3. Asset Schedule: List of assets or properties involved in the proposed transaction, if applicable
4. Corporate Information: Basic corporate information about the parties involved
5. Preliminary Price Calculation: Initial pricing structure or valuation methodology, if applicable
Binding Provisions
Non-Binding Provisions
Proposed Transaction
Business Day
Definitive Agreement
Due Diligence
Exclusivity Period
Break Fee
Effective Date
Completion Date
Target Business
Consideration
Material Adverse Change
Permitted Purpose
Representatives
Group
Affiliate
Transaction Documents
Governing Law
Working Hours
Business Assets
Intellectual Property Rights
Regulatory Approvals
Signing Date
Financial Services
Real Estate
Manufacturing
Technology
Retail
Healthcare
Professional Services
Logistics
Infrastructure
Energy
Telecommunications
Media and Entertainment
Industrial
Consumer Goods
Education
Legal
Finance
Corporate Development
Strategy
Business Development
Mergers and Acquisitions
Commercial
Operations
Risk Management
Compliance
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Managing Director
Business Development Director
Corporate Development Manager
Investment Director
Legal Counsel
Commercial Director
Strategy Director
Head of Mergers and Acquisitions
General Counsel
Company Secretary
Finance Director
Operations Director
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