Letter of Intent for Manufacturing Joint Venture

Work out the terms of an exclusive supply and development agreement with this Letter of Intent template.

• Parties. The parties to the proposed agreement are (ii) a supplier with a product which has potential commercial application and (ii) a developer which will develop, test, produce and distribute the product.
• Obligations. The obligations of each party are set out with respect to costs and development of a working prototype.
• Patents. The supplier will retain title to all patents on the product.
• License. The supplier will grant the developer an exclusive worldwide license to sell the product.
• Confidentiality. Mutual confidentiality undertakings.

When negotiating a contract with a distributor to sell your products, it's a good idea to put the negotiating points down in writing in this Letter of Intent.

• The parties intend the distributor to have exclusive rights to distribute the products within a given territory, and a right of first refusal on additional territories.
• The distributor will be an independent contractor, and not an employee or agent of the supplier.
• The supplier will provide products of the highest quality, with all applicable warranties.
• Target markets are identified.
• The Letter of Intent itself is an agreement in principle, not a legal contract, and is not legally binding except as it relates to the negotiations between the parties, such as confidentiality provisions.
• This template is generic, not country specific, and can be used anywhere.

Download the Letter of Intent form and start the process of adding an exclusive distributor to your network.