Summarize the discussed terms of an exclusive supply and development agreement with this Letter of Intent template.

The negotiations are between a party which has created a product with potential commercial application (supplier) and a party which will develop, test, produce and distribute the product (developer).

The Letter of Intent outlines the parties' discussions with respect to:

• the cost obligations of each party;


• the supplier's obligation to provide a working prototype;


• reporting requirements;


• the supplier will retain all patents on the product;


• the supplier will grant the developer an exclusive worldwide license to sell the product;


• the parties agree to keep all information confidential, and to continue to negotiate in good faith exclusively with each other until either a definitive agreement is executed or the letter of intent expires.

This generic Letter of Intent for Exclusive Supply and Development Agreement is provided in MS Word format, and is fully editable to fit your circumstances.