Download - Termsheet Jv 5 Acre Sector 116 Mohali 16 Nov 11

8/2/2019 Termsheet Jv 5 Acre Sector 116 Mohali 16 Nov 11

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For Discussion purposes onlyDraft Term Sheet- 5 acre sector 116 mohali

Term sheet for the collaboration for 5 Acrs plot atSector 116 Mohali , Punjab

This term sheet summaries the principal terms of understanding between:

M/s .. a companyincorporated under the companies act 1956 having its office at acting through itsauthorized signatory Mr. hereinafter referred toas The Developer , which expression shall unless repugnant to the meaningor context thereof include its successors, representatives and assigns ,hereinafter referred to as the First Party ;

And

M/s . a company incorporated under thecompanies act 1956 having its registered office at..acting through its authorized signatory Mr. hereinafterreferred to as The Land Ownerwhich expression shall unless repugnant to themeaning or context thereof include its successors, representatives and assignsof ,hereinafter referred to as the Second Party;

The first party and the second party are hereinafter referred individually asParty and collectively as Parties

Item Key issue Particulars

1. Effective Date Means The date of signing the Term Sheet byboth the Parties

2. Signed at Gurgoan, Haryana

3 The Land The second party representing as the rightfulowner of a land parcel admeasuring 5 acres( . sq yards) all situated invillage / taluk . As described inannexure I and delineated in the Akshizrra( plan ) annexed with this term sheet andshown in blue colour boundary line and boundas under :North :East :South :


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West :

4. The Projects The Project under this term sheet means theproposal to construct / build a ResidentialComplex which may include some component

of retail shops / general shopping areas,Office complex etc on a parcel of landadmeasuring 5 acres ( .. sq yardslocated at village .. having K nos..(hereinafter referred to as the The Project)

5. Type of understanding andagreement

The first party and second party will enter into adetailed collaboration agreement within 30days of signing of this term sheet fordeveloping The Project .

Under this collaboration , the second partywill be contributing the said land admeasuring5 acres ( . sq yds) at village having .k Nos to derive financial benefits tothe second party.

The First party to construct and implement theproject as per mutually agreed terms andconditions of the collaboration.

6. Commercial Terms ofunderstanding

(a) The First party to get .. % of theproposed built up area and the secondparty to get ..% of the proposedbuilt up area in The Project to beconstructed by the first party.

(b) The revenue / advances collected bythe First party from the sale / lease ofthe proposed built-up area of the projectwill be divided by the first party and thesecond party in the ratio of .. : ..

(first party getting % and Secondparty getting % ) .

(c) A designated bank account will beopened with standing instructions forautomatic transfer of funds to both theparties bank account on a weekly basis(i.e on first working day of the week ).


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(d) Once the first party completes theproject or a part of the component ofthe project , the unsold finished areabelonging to the second party will behanded over to the second party . Afterthe second party gets the physical

possession of his unsold finished areaof the project ,the first party to keep allthe revenues from the sale / lease ofthe first parties unsold finished area inthe project .

7 Security deposit a) The first party to pay Rs. .. lacs ( Rs.. lacs ) as interestfree security deposit on signing of thisTerm sheet subject to the clearance of

legal due diligence of the title /ownership papers of the said land .

b) The first party to pay further amount ofRs .. lacs ( Rs . lacs ) asinterest free security deposit to thesecond party on execution of theCollaboration agreement.

c) The above said security deposit amountshall remain with the second party andshall be adjusted from the revenuepayable to the second party ( from the

revenue share of the second party).d) In the event of non execution of the

collaboration agreement by the partieswithin 60 days of signing of this termsheet ,the second party to refund thesecurity amount to the first party withinone week ( 7 Days ) after the expiry of60 days of this term sheet .

8. Other collaborationterms

(a) A block cum layout plan / building plan( marketing layout plan ) will be madeas per the terms of understanding of theparties by the first party within 60 daysof the execution of the collaborationagreement .

(b) The layout plan / building plan will beshowing / depicting the areas of the first


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party and second party as per theterms of the collaboration .

(c) The first party and second party toshare the salable / leasable areas inthe ratio of .. : .respectively on all the floors of the

building , vertically and the same to beclearly demarcated in the building planbeing made by the first party.

(d)A designated bank account will beopened with standing instructions forthe automatic transfer of funds collected(by way of advance against sale / leaseof the salable / leasable area in theproject . ) in the account to each partiesbank account on a weekly basis on thefirst working day of the week .

9. Role andresponsibility of theFirst Party

A. First Party shall be responsible for allthe financial aspects of the projectincluding the project funding , constructionand implementation ,financing of theproject.B. First Party shall be solely responsible

for planning, implementation andmarketing of the project.C. First Party shall be responsible for theappointment of brokers, channel partners,agents for the marketing of the project.D. First Party shall be responsible for therecruitment of the manpower required forthe implementation of the marketing,liaison, planning etc of the project.E. First Party shall be responsible for theappointment of various agencies required

for the implementation and construction ofthe project .F. The first party to allot the developed/constructed area in the project to thesecond party as per the agreed terms ofcollaboration .,.G. First party will be responsible for allobligations with regard to the construction


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and development of the project.H. In the event, the second party does notobtain the required sanctions / permissionsfor the construction the project then thefirst party shall have the option to extentthe time for obtaining the sanctions /

permission or terminate this agreement .

10. Role andresponsibility ofSecond Party

A. Second Party shall provide the said landproposed for the Project with cleanmarketable title and without any lien /mortgages / charges / disputes etc .

B. The second party to sign & execute allthe documents required for getting thesanctions , permissions , approvals of theproject from the competent authorities /

Govt departments for the implementationof the project

C. The second party to sign & executenecessary documents / power of attorneyas required for the implementation andmarketing of the project .

11. Implementation of the project

The first phase of the Project will be completedwithin a period of . months from start ofconstruction and after obtaining all the required

sanctions from the concerned authorities .

12. Operationalmodalities of Thecollaboration

A detailed collaboration agreement will besigned by both the parties within 30 days ofsinging of this term sheet .

13. Legal implicationsof the partiesbefore the date ofcollaborationagreement

Any legal implications and liabilities /outgoings / etc of either of the parties beforethe execution of the collaboration agreement ,will be the responsibility of the respectiveparties .

14. Termination andPenalty of Delay

Nether of the Parties shall be permitted toterminate the Term Sheet unless any Party isin serious breach of the terms and conditionsof the present Term Sheet.

15. Governing Law andJurisdiction

The Indian Laws shall exclusively govern thisTerms sheet. The Courts of chandigard( Punjab ) shall have the exclusive jurisdiction


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with respect to any disputes under this TermSheet. The Definitive Agreement shall have amutually agreed arbitration clause.

16. Confidentiality The Parties shall keep all negotiations, detailsof the Transaction and the contents of thisTerm Sheet strictly confidential. No. press

release, notice, disclosure or any otherpublicity concerning the Transaction shall beissued, given or disseminated by the Partieswithout the prior written approval of each other.

This Term Sheet will form part of the detailed Collaboration Agreement tobe signed by both the parties.

IN WITNESS WHEREOF, the Parties hereto execute this agreement on the

day and year first hereinabove written.

(PARTY OF THE FIRST PART)

(PARTY OF THE SECOND PART)

WITNESS:-

1.

2.