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Review Term Sheet


We have generated this draft Term Sheet based on the information you provided. You can:

· Make changes to the names and addresses of the parties, the claim description and the deadline set forth in this draft Term Sheet by returning to the Prepare Term Sheet page.

· Elect to use an alternative version of Paragraph 6 of the Term Sheet by following the instructions that appear on this page in the box beneath the draft Term Sheet (this will allow you to designate a set of "Settlement Terms" that are different from the terms referred to in paragraph 6 of the draft set forth below].


· Once you are satisfied with the Term Sheet, proceed to our Define Settlement Amount  page to confidentially specify your proposed settlement amount.

To download a PDF copy of this term sheet, click here.

TERM SHEET DATED [Activation Date will be inserted here upon activation]
Fair Proposals Account No.[Account Number will be inserted here upon activation]

FROM THE FIRST PARTY
Jane Doe
C/O Sally Roe, Law Offices of Sally Roe, 10 Main Street - Anytown USA 01234
First Party's e-mail address:
sally.roe@roe.com
TO THE SECOND PARTY
John Smith
C/O Bob White, Law Offices of Bob White, 10 High Street - Anytown USA 01234
Second Party's e-mail address:
bob.white@white.com
REFERENCED MATTER
Your claim No 678910

Jane Doe [the "First Party") hereby invites John Smith ("you" or the "Second Party") to use the process described below to arrive at a settlement agreement with respect to the above-referenced matter. The First Party specifically agrees and represents as follows:

1. The First Party will accept a specific amount of money (referred to in this Term Sheet as "X") to settle the above-referenced matter if, prior to a fixed deadline and in the manner described below, you agree to settle for that amount. The fixed deadline is as follows: Thursday, November 16, 2017 at 12:00 Hours (i.e., 12:00 Noon) U.S. E.S.T. (the "Deadline").

2. The First Party has specified the value of X by using a commitment device (the “Fair Proposals System” or the “System”) that is embodied online at www.fairproposals.com and that is administered by Fair Outcomes, Inc. of Boston, Massachusetts, U.S.A. The First Party has caused the System to send you an e-mail today, via the Second Party’s email address as set forth above, that contains the text of this Term Sheet and log-in information that will allow you to confidentially use the System free of charge. You can use that System to confidentially specify an amount of money ("Y") and signify your willingness to settle for X (and to accept certain "Settlement Terms," as that phrase is defined at paragraph 6 of this Term Sheet) if - and only if - X is less than or equal to the amount of money that you specify (Y). The System will not disclose to the First Party or to anyone else (including the administrators of the System) any use or non-use that you may make of the System or of that website, and will erase and delete any data that you enter, unless X is less than or equal to the amount of money that you specify (in which event the claim will settle for X).

3. If you enter data as described at paragraph 2 above, then the System will at that time determine whether X is greater than, equal to, or less than the numerical value that you specified (Y).

4. If the System determines that X is less than or equal to Y, then the System will at that time automatically issue a certificate to both you and the First Party (the "Parties") setting forth the value of X and attesting to the terms set forth in this Term Sheet and to the fact both Parties had agreed to settle for X in the manner described in this Term Sheet.

5. If, alternatively, the System determines that X is greater than Y, then the System will automatically notify you of that fact and give you an opportunity to confidentially specify a different value for Y. This opportunity will be given to you on each such occasion up until the Deadline. In addition, on each such occasion the System will give you an opportunity to print out a certificate confirming the value that you specified for Y at that time and attesting to the fact that the matter did not settle at that time because X was greater than Y. (The System will not maintain or provide the First Party or anyone else with a copy of any such certificate or the information set forth therein.)

6. If the System determines that both Parties have agreed to settle for X in the manner described above, then both Parties shall also be deemed to have agreed to a set of settlement terms (the "Settlement Terms"). The Settlement Terms shall (unless the Parties have otherwise mutually agreed in writing) be as follows:(i) Each Party shall be deemed to have fully settled, resolved, and released the other from any and all claims that existed between them with respect to the above-referenced matter; (ii) The Second Party shall cause the settlement amount to be paid to the First Party within thirty (30) days of the date upon which you entered data into the System resulting in a determination that the Second Party had agreed to settle for X; and (iii) if said payment has not been made within that period, then (a) the Second Party shall be obliged to pay all reasonable costs incurred by the First Party in collecting said amount from the Second Party, including reasonable attorneys fees; and (b) the First Party may, in the First Party's sole discretion and as an alternative to pursuing collection proceedings, rescind the First Party's agreement to settle for X by sending written notice to that effect to the Second Party.

7. Additional information about the above-described process and about Fair Outcomes, Inc. is available on the System's website, which can be accessed by clicking here.

Jane Doe

Additional Information Concerning Settlement Terms

Note that you can alter the settlement terms set forth in the current text of paragraph 6 above by clicking on one of the alternatives below (clicking on the third option allows you to draft your own settlement terms and specify them via an email to the Second Party at the time that you activate the invitation):

A. Current Text.

"If the System determines that both Parties have agreed to settle for X in the manner described above, then both Parties shall also be deemed to have agreed to a set of settlement terms (the "Settlement Terms"). The Settlement Terms shall (unless the Parties have otherwise mutually agreed in writing) be as follows:(i) Each Party shall be deemed to have fully settled, resolved, and released the other from any and all claims that existed between them with respect to the above-referenced matter; (ii) The Second Party shall cause the settlement amount to be paid to the First Party within thirty (30) days of the date upon which you entered data into the System resulting in a determination that the Second Party had agreed to settle for X; and (iii) if said payment has not been made within that period, then (a) the Second Party shall be obliged to pay all reasonable costs incurred by the First Party in collecting said amount from the Second Party, including reasonable attorneys fees; and (b) the First Party may, in the First Party's sole discretion and as an alternative to pursuing collection proceedings, rescind the First Party's agreement to settle for X by sending written notice to that effect to the Second Party."

B. You can click here to substitute the following version of paragraph 6 for the version set forth in the above draft:

"If the System determines that the Second Party has agreed to settle for X in the manner described above, then both Parties shall also be deemed to have agreed to the following settlement terms ("SettlementTerms"):(i) the Parties shall forthwith execute and exchange a written release and settlement agreement ("Release and Settlement Agreement") in a form acceptable to both Parties (which acceptance shall not be unreasonably withheld) confirming that each has fully settled, resolved, and released the other from any and all claims that existed between them with respect to the above-referenced matter; and (ii) the settlement proceeds shall be distributed at the time that the Release and Settlement Agreement is exchanged or, where applicable, upon receipt of any assurances that may be reasonably requested with respect to any liens on such settlement proceeds (e.g., liens held by governmental entities for Medicare, Medicaid, Social Security, or Public Assistance benefits)."

C. You can click here to substitute the following version of paragraph 6 for the version set forth in the above draft:

"If the System determines that the Second Party has agreed to settle for X in the manner described above, then both Parties shall also be deemed to have agreed to a set of settlement terms (the "Settlement Terms").The Settlement Terms are set forth in a writing that was prepared by the First Party and that was sent by the First Party via an e-mail referencing this Term Sheet, from the First Party's e-mail address (as set forth above) to the Second Party's e-mail address (as set forth above), within one hour of the time at which the First Party caused the e-mail described in paragraph 2 above to be sent (i.e., within one hour of the time at which the First Party activated the invitation set forth in the Term Sheet and thus caused that e-mail to be sent). The Settlement Terms shall consist of the terms set forth in that writing (unless the Parties have otherwise mutually agreed in writing). "

None of these versions of paragraph 6 prevent the First Party and the Second Party from mutually agreeing in writing to different (or to additional) Settlement Terms. However, in the absence of such a written agreement, the Settlement Terms referenced in paragraph 6 will apply.

Note: If you are not an attorney, then it is recommended that you should - prior to activating an invitation - obtain advice from an attorney with respect to the sorts of terms that would be reasonable and appropriate given the underlying facts and circumstances. Fair Outcomes, Inc. has no knowledge of those facts and circumstances and, as is noted in our Terms of Use, we do not provide legal advice to parties using this site.

Once you are satisfied with the Term Sheet, proceed to our Define Settlement Amount page to confidentially specify your proposed settlement amount.