Ann: Binding term sheet for off take, page-10

Cap In my experience and happy for others to disagree, a term sheet is kind of the agreement to say we intend to make an offtake but we aren't locked in yet. This is not from any business dealings on my behalf just from holding companies and seeing what has been done with them. LPD comes to mind that I think you are familiar with.... And its not a cross promote for anyone that's not familiar with them. ( I've torched 90% of my capital there and they are highly likely to be about to enter receivership so Its looking like 100% gone)

They had a binding Term Sheet With Traxys. but there was no penalty for not delivering any product as it never progressed that far.... It was an internet to find buyers rather than an agreement to Take delivery of goods.

Not sure if that's a clear enough example ( every contract is different and I didn't get into the fine print) and I know this case is different but that's one of the many Binding Term sheets that have never amounted to anything from companies I have held.

I'm happy for others to Educate me further on it though If I'm way off the mark.

Here's what AI had to say on it.

A binding term sheet is a preliminary document that outlines the terms of an agreement, while an offtake agreement is a contract that establishes the terms for the exchange of goods or services.

Term sheets

• Definition: A preliminary document that outlines the key terms of a potential agreement
• Purpose: A starting point for negotiations, and a way to increase transparency
• Legality: Usually not legally binding, but can include some binding provisions
• Benefits: Can help ensure that the final agreement aligns with your plans and values