Professional Documents
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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
mkampfer@pearsonllc.com
662.555.0198
By:______________________________
Its:______________________________