A letter of intent can be used to document anything for which you want to declare intent. One might use a letter of intent to clarify the details of a contract, provide disclosure information, apply to college or make a real estate purchase. Become familiar with letters of intent by examining a few samples.
Letter of Intent
This letter is to formally announce the development of a corporate center at the northwest intersection of LOCATION REMOVED. This is a highly visible location with mostly low-income residential areas surrounding it. As one of the last lots in the area to be vacant and with new condos about to start construction just two blocks away, which are backed by the same city redevelopment plans as this, the area is saturated with opportunity. The small amount of documentation that has propelled us to this stage is available on an in-person basis only and not retainable.
The City of REMOVED and project partners are contemplating the development of this land to suit professional practices. Extensive research has made clear to them that there is a lack of certain services in the proposed area. As a result, the city is taking action to jump-start economic development.
Plans exist to make it very affordable for the “right” businesses to sign a lease at this location. Professional services, such as medical, banking, legal, accounting, engineering and architecture, will be granted generous lease terms and possibly even tax breaks made possible by the state, county and city governments.
The signing of this letter commits you to nothing more than demonstrating an interest in the project. Its intent is to provide the city with feedback from potential firms that might be interested in a long-term lease. All parties involved have agreed that with enough interest shown by the hand-selected companies, funding for floor plans and leases will be made available.
If you received this letter, your professional participation has been mentioned, considered and recommended by the Community Redevelopment Department for the City of REMOVED.
When leases are available, we will try to win your occupancy. We look forward to working with you.
If you have any questions, please contact either of the persons below:
Lawrence Lanzilli Developer Email Removed Phone Removed
Name Removed Community Redevelopment Agency Director Email Removed Phone Removed
Company Name: Signature: Title/ Department: Printed Name: Company Address: Assistant’s Name: Phone:
Please accept this electronic correspondence as an official document.
On behalf of REMOVED Capital, I would like announce our interest in your medical office transaction in REMOVED.
We look forward to working with you.
Name Removed Title Removed Address Removed
Office: Removed Fax: Removed Cell: Removed Web: Removed
In this last example, a letter of intent makes an offer for employment or acquisition.
Overview: This document is intended to structure the full-time employment acquirement of REMOVED by REMOVED and define the terms by which both parties have agreed to. REMOVED is to give 7 percent equity to REMOVED in the following manner.
3 percent - Immediately
Additionally 2 percent - Succeeding annual revenue reaching $5 million 2 percent - Succeeding annual revenue reaching $15 million
Duties & Compensation: REMOVED will be responsible for performing and/or overseeing all actions pertaining to company installations and project management worldwide effective immediately. If and when additional employees are required for on-site work, they will be assigned to REMOVED and managed by him. Decisions of anything effecting the company’s cash flow, expenses, payables, credit and/or any other form of finance, including and not limited to purchases, additional employees, loans, credits, etc., is to be made only by the CEO or others specifically given written consent to do so by the CEO. This document does not state any authority to do so by REMOVED. Any violation of this by any individual, including REMOVED, will result in that person specifically being liable for any pertaining costs incurred by REMOVED.
REMOVED will be assigned the title of Director of Operations and paid a $75,000 salary, separate than that of his equity percentage payouts (percentage owned multiplied by quarterly profit), upon finance acquisition which is currently pending. Equity payouts will be on a quarterly basis (March 15, June 15, September 15 and December 15) and be effective upon finance acquisition. As a shareholder, REMOVED is entitled to withdraw at most 50 percent of his equity payout each quarter. This is to ensure company growth. Effective immediately, REMOVED will also receive 5 percent profit share, as commission, pertaining to sales attributed to him once payments have been received in full for that particular project.
Failure to Comply: Failure to perform the above outlined actions as Director of Operations will result in written warnings. After three written warnings have been issued, the CEO may give written consent to majority stakeholders, whereby, automatically and without consent of REMOVED, the right to buy back all equity held by REMOVED will be given. At a price equal to the percentage of equity held by REMOVED multiplied by the total asset value of the company, which will be determined by a third-party mutually agreed value evaluation company.
Contingency: This entire agreement is contingent upon and will not be considered valid/executed until an initial contract is sold by REMOVED worth at least $6.5 million, in revenue to be generated over the next three months.
- glasses on the paper image by Elena Vdovina from Fotolia.com