8/12/2019 Model Letter of Intent

1/6

___________, 200_

Seller A[Address]

__________________

Seller B[Address]

__________________

Re: Proposal to Purchase Stock of the Company

Dear Sellers:

This letter is intended to summarize the principal terms of a proposal bein considered b! __________________ "the #Bu!er$% re ardin its possible ac&uisition of all of the outstandincapital stoc' of ________________ "the #(ompan!$% from ______________"#A$% and

_____________________, )ho are the (ompan!*s sole stoc'holders "the #Sellers$%+ n thisletter, "i% the Bu!er and the Sellers are sometimes called the #-arties,$ "ii% the (ompan! and itssubsidiaries are sometimes called the #Tar et (ompanies,$ and "iii% the Bu!er*s possibleac&uisition of the stoc' of the (ompan! is sometimes called the #-ossible Ac&uisition+$

PART ONE

The -arties )ish to commence ne otiatin a definiti.e )ritten ac&uisition a reement pro.idinfor the -ossible Ac&uisition "a #Definiti.e A reement$%+ To facilitate the ne otiation of aDefiniti.e A reement, the -arties re&uest that the Bu!er*s counsel prepare an initial draft+ Thee/ecution of an! such Definiti.e A reement )ould be sub ect to the satisfactor! completion ofthe Bu!er*s on oin in.esti ation of the Tar et (ompanies* business, and )ould also be sub ectto appro.al b! the Bu!er*s board of directors+

Based on the information currentl! 'no)n to the Bu!er, it is proposed that the Definiti.eA reement include the follo)in terms:

1. Basic Transaction

The Sellers )ould sell all of the outstandin capital stoc' of the (ompan! to the Bu!er at

the price "the #-urchase -rice$% set forth in -ara raph 2 belo)+ The closin of this transaction"the #(losin $% )ould occur as soon as possible after the termination of the applicable )aitin

period under the 1art Scott 3odino Antitrust mpro.ements Act of 4567 "the #1S3 Act$%+

. Purchase Price

The -urchase -rice )ould be 8____________ "sub ect to ad ustment as described belo)%and )ould be paid in the follo)in manner:

799 2 .4;SA

8/12/2019 Model Letter of Intent

2/6

[Seller A][Seller B]-a e 2

!a" at the (losin , the Bu!er )ould pa! the Sellers the sum of 8_____ in cash