Loi Asset Purchase Agreement

This letter (this “letter”) is intended to summarize the main conditions of a proposal reviewed by [BUYER], a [ENTITY TYPE] [ENTITY TYPE] with respect to the eventual acquisition of all assets and the resumption of certain specified liabilities of the company (the “transaction”) of [SELELR], of a [STATE] [ENTITY] (“seller”). The eventual acquisition of the business is referred to as a “transaction” and the buyer and seller are referred to as “party” and collectively “parties.” Calculating the purchase price based on “current information” is one of many options. A lawyer may discuss other alternatives, for example. B in reference to an existing briefing memorandum or other prepared document. Escrow is a frequent and appropriate request to purchasers to cover potential claims against the seller after closing for a specified period of time that may result from the seller`s insurance, guarantees and compensation. The percentage of the total purchase price and the duration of the funds must remain in trust before they are released to the seller are being negotiated. Fiduciary amounts generally vary between 5 and 20% of the purchase price, and funds are generally held for periods ranging from 6 months to 3 years, depending on the problems that are protected. It is customary for different amounts to be released over time. For example, it may be held in a trust of $1.5 million, with the parties agreeing to releases in increments of $500,000 after 12, 24 and 36 months. A lawyer can help identify and assess the potential impact on the purchase price, for example. B if it reserves a certain amount as collateral for the necessary guarantees or if there are shareholder loans that are repaid separately or included in the purchase price. Terminology Sheet: The appointment sheet is a non-binding expression of interest from a buyer that describes the price and structure of a transaction.

It is generally used in larger transactions where the parts are more demanding and where a business is marketed without a price. Its role is to determine whether the parties agree on the price and structure of the transaction before both parties invest considerable time and money on professional expenses. Assuming they generally agree, the buyer will submit either a LOI or a PA. A terminology sheet is usually one to five pages long. (a) Given the costs, the seller agrees that, until the end of this letter in paragraph 8 (this period, exclusivity period), nor its representatives, executives, directors, directors, directors, representatives, members, managers, subsidiaries or related companies (the “group of sellers”), directly or indirectly, a proposal or offer from a person or group of a person or group of persons related to the buyer and related company (a Proposal for Acquisition) , to maintain, negotiate, negotiate, accept or discuss directly or indirectly to acquire or acquire the business or its assets, whether through merger, share purchase, purchase of assets, offer or other, or to provide non-public information to third parties in connection with an acquisition proposal or to enter into an agreement. , an arrangement or understanding that requires the transaction with the buyer to be abandoned, completed or not concluded.