Whenever investors are examining a venture for potential infusion of capital, the value of the venture comes into play. This always involves what is called the term sheet. This docu-ment outlines the material terms and conditions of a venture agreement. ( See Appendix 14- A at the end of this chapter for a complete sample term sheet) After a term sheet has been executed, it guides legal counsel in the preparation of a proposed final agreement. It then guides, but is not necessarily binding, the final terms of the agreement. Term sheets are very similar to letters of intent ( LOIs) in that they are both preliminary, mostly nonbinding documents meant to record two or more parties’ intentions to enter into a future agreement based on specified ( but incomplete or preliminary) terms. Many LOIs, however, contain provisions that are binding, such as nondisclosure agreements, a covenant to negotiate in good faith, or a “ stand- still” provision that promises exclusive rights to negotiate.