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Letter of Intent For Business

Pearson, LLC submits a proposal to acquire Kate's Cupcakes, Inc. and its 15 retail stores for $1.1 million. The closing would be subject to negotiation and execution of definitive agreements including customary representations and warranties. The parties agree to work towards a quick closing and conditions include negotiation of agreements, obtaining approvals, and no material adverse changes to the business. This letter of intent is non-binding but creates a binding agreement for the parties to negotiate in good faith.

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489 views2 pages

Letter of Intent For Business

Pearson, LLC submits a proposal to acquire Kate's Cupcakes, Inc. and its 15 retail stores for $1.1 million. The closing would be subject to negotiation and execution of definitive agreements including customary representations and warranties. The parties agree to work towards a quick closing and conditions include negotiation of agreements, obtaining approvals, and no material adverse changes to the business. This letter of intent is non-binding but creates a binding agreement for the parties to negotiate in good faith.

Uploaded by

qwerty_qwerty1234567
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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June20,2013 KateAnderson KatesCupcakes,Inc. DearMs.Anderson, WewelcometheopportunitytosubmitaproposaltoacquirethebusinessofKates Cupcakes,Inc.andrelatedcompanies(collectivelytheCompanyorSeller)operating approximately15retailstoresinCaliforniasellingbakedgoods(theBusiness).Weunderstand thedesiretoproceedexpeditiouslywithasaleoftheBusiness.Wearepreparedtomovequickly onthetransactionandbelievewearewellsuitedtodoso.Thislettersummarizesourproposal. 1.

PurchasePrice

AnentitynewlyformedbyPearson,LLC(Buyer)wouldpurchasesubstantiallyallofthe operatingassets,includingalltangibleandintangibleassets,equipment,leases,contractrights, andintellectualpropertyusedintheBusinessforapurchasepriceofonemilliononehundred thousanddollars($1,100,000).BuyerwillnotassumeanyliabilitiesoftheBusinessofthe Companyotherthanliabilitiesaccruingaftertheclosingundercontractsorleasesassumedby Buyer. 2. DefinitiveAgreement

Theclosingwillbesubjecttothenegotiationandexecutionofdefinitivetransaction documentsthatwillinclude,amongotherthings,customaryrepresentations,warranties, covenants,andindemnitiesbytheSellerandtheirprincipalsregardingthebusiness,operations, andfinancialconditionoftheBusiness. 3. ClosingDate

Thepartiesacknowledgethattimeisofimportanceandthattheywillworktowards closingthetransactionasquicklyaspossible. 4. ConditionstoClosing

TheconsummationoftheTransactionwillbesubjecttothesatisfactionofcustomary conditions,including,withoutlimitation,thefollowing: a. Thenegotiation,execution,anddeliveryofdefinitiveagreementssatisfactoryto eachoftheparties,includingretailleases,andsecuringofanyrequired governmentalorthirdpartyapprovals,waivers,orconsents.

b. MaintenanceoftheCompanysbusinessintheordinarycourse,andtheabsence ofanymaterialadversechangeintheCompanysbusinessoffinancialcondition ormaterialchangedintheconductofitsbusinessasofthedateofthisLetterof Intent. c. TheCompanynotseekingorrequestinganytypeofbankruptcyprotectionor bankruptcyprocedure. 5. BindingAgreement

Otherthanthisparagraph5,whichisintendedtobeandislegallybinding,thisletteris nonbindingandconstitutesanindicationofintentonlyandcreatesnoliabilityorobligationofany naturewhatsoeveramongthepartiesheretowithrespecttoanycontemplatedtransactionorany othermatteroractiondescribedorreferredtoherein.Legallybindingobligationswithrespectto thecontemplatedtransactionwillonlyariseuponexecutionofadefinitiveagreementandrelated agreementswithrespecttothetransaction.

Iftheforegoingissatisfactory,pleaseindicateyouragreementwiththeforegoingby countersigningacopyofthisletterandreturningittoourattention.Welookforwardto proceedingtogetheronthistransaction.

_________________________________ MichaelD.Kampfer ManagingDirector [email protected] 662.555.0198

By:______________________________ Its:______________________________

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