top of page
Form 16-1: Letter of Intent to Enter into Stock Purchase Agreement

Form 16-1: Letter of Intent to Enter into Stock Purchase Agreement

$25.00Price

Form 16-1: Letter of Intent to Enter into Stock Purchase Agreement for 100% of Stock of Privately Held Operating Business

 

Cash Base Price at Closing Plus Incentive Price Payable in Installments Based upon Earnout Formula

 

(9 pages)

  • Form addresses:

    • Scheduled closing date.
    • Purchase price (Base Price of cash and installments).
    • Incentive Price (installments contingent upon the target company's revenues).
    • Uncollectible accounts receivable credited against Base Price.
    • Security: pledge of company's stock.
    • Indemnity.
    • Representations and warranties (extensive).
    • Stock purchase agreement.
    • Contingencies.
    • Due diligence.
    • Compliance with securities laws.
    • Covenants not to compete.
    • Company's covenants.
    • Liquidated damages.
    • Broker fees.
bottom of page