State of Michigan Rev.

133C717

LETTER OF INTENT TO PURCHASE A BUSINESS

January 23, 2018

Evan I Antonelli
3389 Tully Street
Detroit, MI 48226

Re: Purchase of ABC, Inc.

Dear Evan I Antonelli,

This Letter of Intent (this “Letter”) sets forth the mutual interest of Michael M Rice located at 3425
Beechwood Avenue, Renovo, PA 17764 (“Buyer”), and Evan I Antonelli located at 3389 Tully Street,
Detroit, MI 48226 (“Seller”) regarding the possible acquisition by Buyer of certain assets and liabilities of
ABC, Inc., a Michigan corporation wholly-owned by Seller ("Target"). Buyer and Seller may be referred to
herein individually as a “Party” and collectively as the “Parties.” The Parties are executing this Letter to
enable and facilitate the ability of the Parties to negotiate the execution of a final and binding contract.

1. Agreement to Negotiate in Good Faith: The Parties agree that their goal and interest herein is to
bring about a sale and transfer of Target (the “Transaction”), and thus, each Party promises to negotiate
in good faith, for the period set forth below, a definitive purchase agreement (the “Purchase Agreement”)
to include the terms and conditions set forth in this Letter and such other representations, warranties,
conditions, covenants, indemnities and other terms as the Parties may agree upon. The closing of the
Transaction (the “Closing”) shall occur on or before January 30, 2018.

2. Purchase Price. No purchase price for the Transaction is listed at this time, pending completion of
due diligence.

3. Due Diligence. After the signing of this Letter, Seller will grant Buyer and its duly authorized
representatives full access to the facilities, financial, accounting and business books and records,
material contracts, legal records, key employees, advisors and any other matters of Target as Buyer’s
accountants, tax and legal counsel and other advisors deem appropriate, subject to the Confidentiality
provision provided below, for the purpose of allowing Buyer to complete its due diligence. The Purchase
Agreement shall be contingent upon the satisfactory completion of due diligence by Buyer.

4. Seller’s Covenants. During the period this Letter is in effect, Seller will conduct Target’s business in
the ordinary course and will not undertake any activity or transaction that would significantly reduce the
value of Target's business or assets.

5. Expenses. Each Party will be responsible for its own costs and expenses associated with the
negotiation and execution of this Letter and the Purchase Agreement.

Letter of Intent to Purchase a Business (Rev. 1/2

133C717)
6. Governing Law. This Letter and all matters related thereto shall be governed by and construed in
accordance with the laws of the State of Michigan without giving effect to its conflict of laws principles.

7. Termination. This Letter will automatically terminate upon the earliest of:

(A) the execution of the Purchase Agreement by the Parties

(B) the mutual written agreement of Buyer and Seller
(C) February 06, 2018

8. Non-binding. This Letter is intended only as a reflection of the intention of the Parties, and neither this
Letter nor its acceptance shall constitute or create any legally binding or enforceable obligation on any
Party, except with regards to paragraphs regarding Confidentiality, Expenses, Governing Law and
Termination hereof. No agreement or obligation regarding Target and/or the Transaction shall be
deemed to exist between the Parties and any of their respective affiliates, unless and until the Purchase
Agreement has been executed and delivered, and then only in accordance with the terms and conditions
of such Purchase Agreement.

9. Miscellaneous. This Letter contains the entire understanding between the Parties and supersedes all
previous agreements, if any, between the parties concerning the same or substantially similar subject
matter. This Letter may be amended, supplemented or otherwise modified only in a writing signed by duly
authorized representatives of each Party. This Letter maybe executed in counterparts, each of which shall
be deemed an original and all of which together, shall constitute one and the same document. The
section headings are for reference purposes only and shall not otherwise affect the meaning, construction
or interpretation of any provision in this Letter.

If the foregoing terms and conditions are acceptable, please sign and return this Letter to the
undersigned.

Very truly yours,

Michael M Rice
Buyer Name

Agreed to and accepted by:

Evan I Antonelli
Seller Signature Seller Full Name

Letter of Intent to Purchase a Business (Rev. 2/2

133C717)
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 (and negotiations) will end and which state’s law
GENERAL INSTRUCTIONS will govern it.

WHAT IS A LETTER OF INTENT? Here are some other terms that may also be
included:
A Letter of Intent for Purchases is a written - Confidentiality – the agreement and any
document that outlines a preliminary agreement information learned will remain confidential
between two parties regarding the terms of a - Covenants – things each party must do while
potential purchase transaction. The two parties negotiations are taking place
can settle on certain terms while agreeing to - Special Terms – any special terms that the
continue to negotiate the other terms and details parties agree will be in the purchase agreement,
of the transaction before actually signing a such as leaving certain items of furniture or
purchase agreement. hiring certain employees

WHAT SHOULD BE INCLUDED IN A As a reference, a Letter of Intent is known by

LETTER OF INTENT? other names:
- Intent to Purchase Letter
- LOI
Who are the Parties?
- Letter of Interest
Identify who is the seller (the current owner) and
- Term Sheet
the buyer (the potential new owner).
- Memorandum of Understanding
- MOU
What is the Transaction? - Assurance Letter
Describe in detail what is being purchased, - Framework Letter
including any agreements on what will be
included or excluded in the transaction the
parties will be negotiating. WHEN SHOULD I USE ONE?

What are the Terms? This agreement is most often used in

Include any terms that have been agreed upon, transactions involving a purchase. Sometimes
such as purchase price or price adjustments. If two parties will know that they want to do a
the seller has agreed to exclusivity (i.e. not to business deal together, but they aren’t ready to
negotiate with other parties), that should be sign an actual agreement. For example, they
included as well. may agree that one party will sell his or her
business for a certain price, but they do not yet
agree on who will take on certain liabilities of the
Are there any Conditions?
business. The parties can sign this document to
The parties can include certain conditions that
show each other a good faith intention to work
must occur before a final agreement will be
out a deal. It can also help parties get on the
signed, such as:
same page as to what they expect from the
- the buyer securing financing
purchase.
- the buyer completing due diligence
- the buyer successfully selling his or her home
- an inspection of the property WHAT HAPPENS IF I DON'T USE
- regulatory or other required approvals ONE?

WHAT ABOUT THE LETTER OF Without this document, you might miss out on a
INTENT ITSELF? number of purchase or sale opportunities.
Sometimes banks or lenders will require some
The agreement should explicitly state whether it kind of proof of a deal before they will promise to
is binding or non-binding – don’t leave this open grant to financing. Or if you are still negotiating
for a court to determine. Also include when it certain terms of the deal, either side
may question the other party’s commitment to
actually getting the deal done and walk away.

Letter of Intent to Purchase a Business (Rev. 133C717)