When we go to put deals together for raising money, a strategic relationship, or even an employee or consulting agreement with key people, those agreements can be written relatively simply. They can be 3-4 pages and cover all of the basic terms that really need to be covered in the agreement. In issues where you haven’t covered it, you figure out a way within the agreement to determine a way to resolve disputes very simply. Usually in a corporation we’ll put in a “provisional director.” This allows an outside director to come in and make a decision if you’re unable to make one or to solve a dispute if you are unable to solve it without having to go into arbitration or to litigation. But again, term sheets should be simple.
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