|
|
Post by jmkopp on Apr 10, 2018 12:57:10 GMT -5
Anyone know how long it takes to get from a signed term sheet to a signed contract during negotiations? It seems like the terms would be the most difficult part of that process and the rest would be relatively quick and easy.
|
|
|
|
Post by dreamboatcruise on Apr 10, 2018 13:15:55 GMT -5
Anyone know how long it takes to get from a signed term sheet to a signed contract during negotiations? It seems like the terms would be the most difficult part of that process and the rest would be relatively quick and easy. It would be very difficult to say. If a term sheet says the agreement shall have "customary terms and conditions" and it's a type of deal where there actually are pretty universal terms and conditions, it can go pretty quickly. Likewise, if it is something very straightforward without a lot of long term ramifications for either company it might fly by. I've had deals done within a few days of a term sheet. But other deals can drag on for a long time. I'm sure these international marketing/distribution deals have a lot of moving parts... and are pretty significant commitments by both parties. It is also possible if one of them is for China, there could be added delay if the term sheet is with someone other than AMPH, then the term sheet would have to afford the requisite review period for AMPH to exercise or decline their right of first refusal. I once got played by a larger company that concluded a term sheet for joint marketing... a lot of foot dragging by them and an extension of the term sheet... finally came to conclusion they were simply using the term sheet as a way of trying to keep us away from any of their competitors, but really weren't committed to going through with it. Live and learn. |
|
|
|
Post by traderdennis on Apr 10, 2018 15:13:09 GMT -5
Anyone know how long it takes to get from a signed term sheet to a signed contract during negotiations? It seems like the terms would be the most difficult part of that process and the rest would be relatively quick and easy. if the term sheet is for China, then AMPH has first right of refusal, and a contractual length of time to contemplate the offer. |
|
|
|
Post by matt on Apr 10, 2018 15:27:55 GMT -5
Anyone know how long it takes to get from a signed term sheet to a signed contract during negotiations? It seems like the terms would be the most difficult part of that process and the rest would be relatively quick and easy. It all depends on the deal. I have negotiated term sheets in a matter of hours, told the attorney to not screw it up, and we had a signed deal in 48 hours. I have had others linger for months. A lot depends on how detailed the term sheet is. Sometimes one side will sign a weak and highly modifiable term sheet to help the other side out if, for example, they are under pressure from their board. That paper is not worth much. Other times all substantive terms have been discussed, agreed, and documented such that the lawyers can draft a contract with nothing more. There have even been cases where a detailed term sheet was ruled to be sufficient to form a binding contract despite written language to the contrary. |
|
|
|
Post by jmkopp on Apr 11, 2018 7:32:21 GMT -5
Thanks for the information.
|
|
|
|
Post by mnholdem on Apr 13, 2018 4:51:24 GMT -5
Anyone know how long it takes to get from a signed term sheet to a signed contract during negotiations? It seems like the terms would be the most difficult part of that process and the rest would be relatively quick and easy. if the term sheet is for China, then AMPH has first right of refusal, and a contractual length of time to contemplate the offer. :
6.5 Right of First Refusal in China. In consideration of the amendments contained in this Second Amendment and in the Option Amendment, MannKind hereby grants Amphastar the right of first refusal to participate in the development and commercialization of Afrezza in China through a collaborative arrangement. Specifically, Amphastar and MannKind agree that MannKind will not commence the process of obtaining approval of Afrezza in China without first providing Amphastar with (i) at least ninety (90) days prior written notice of MannKind’s intention to commence the process of obtaining approval of Afrezza in China, and (ii) if Amphastar confirms its interest in collaborating in the development or commercialization of Afrezza in China in writing within thirty (30) days of receipt of MannKind’s notice, then the Parties shall reserve sixty (60) days to negotiate in good faith the terms of such a collaborative arrangement for Afrezza in China. In the event that the Parties are unable to agree on commercial terms for a collaborative agreement after the sixty (60) day negotiation period, then MannKind shall have the right to negotiate a collaborative agreement with another party (“Competing Terms”). MannKind shall present the Competing Terms to Amphastar in writing, and within sixty (60) days of receipt of the Competing Terms, Amphastar shall have the option to either (i) decline to match the Competing Terms, or (ii) agree to match the same Competing Terms and enter into a collaborative agreement with MannKind in China.
2.6 Section 10.1 of the Agreement shall be extended until December 31, 2023. All other terms and conditions in paragraph 10.1 shall remain in full force and effect. www.sec.gov/Archives/edgar/data/899460/000119312517085519/d305327dex1033.htm |
|
