We loved the story at on The Next Web about a woman who gave her son a new iPhone over the holiday...along with an 18-point terms of use contract. It addresses a lot of the things parents worry about regarding kids having smart phones, from sexting, to a lack of digital ettiquette. The contract is pretty great through and through, but my favorite is the last point: 

18.  You will mess up.  I will take away your phone.  We will sit down and talk about it.  We will start over again.  You & I, we are always learning.  I am on your team.  We are in this together.

Read the rest of the contract here.