FORMAL LETTER OF INTENT & REQUEST

 

{effectiveDate}

 

FROM: {name}, {title}
           {address}
           {phoneNumber36}
           {email}
           I.P. {ip}

To:     Milestone Group, U.A.

Attn:   Financial Manager
          1621 Central Avenue
          Cheyenne, Wyoming [82001-4531]
          Opportunity@Milestone.Energy
          www.Milestone.Energy

Subject: Intent & Request to CoVest in the Opportunity
             Milestone Energy (herein, “ME”)
             Submission I.D. {id}

 

Dear Manager,

This Letter of Intent & Request (“LOIR”) is submitted on behalf of Myself (the “CoVestor”) in connection with a Private CoVestment Opportunity (the “Opportunity”) honored by Milestone Energy SRL (URL: www.Milestone.Energy) via Relationship and Royalty Sharing Covenant (“RRSC”) with Milestone Group, U.A. (herein the, “Project”). I am interested to open a dialogue for exploring a capital contribution ranging from €25,000 EUR to €50,000,000 EUR (herein my, “CoVestment”) to participate in ME’s Opportunity, a royalty program presenting a mutually attractive growth potential.

1. Overview of the Opportunity

My proposed CoVestment is aimed at supporting the development and expansion of the Project, which is designed to generate a sustainable monthly royalty for the CoVestor based on the Opportunity’s revenue generation from ME’s Project, and distributed in accordance with the number of Beneficial Interest Units (the, “BIU”) held by the CoVestor in Milestone Group Unincorporated Association (“MGUA”), a Private Member Association concurrently established by Milestone Energy SRL for and on behalf of all Bona Fide Participant Members (“CoVestors”).

Key Highlights of the Opportunity Included in RRSC:

An anticipated 4% Monthly Royalty distribution for a period of 12 Months in RRSC with the potential of new opportunities in rolls & extensions into the subsequent months thereafter.

(Man/Woman/F.B.O. Entry)

- €25,000 to €249,999 = BIU at 4% Gross Monthly CoVestor Royalty

(Company/Corporate Entry)

- €250,000 to €50,000,000 = BIU at 4% Gross Monthly CoVestor Royalty

* Opportunity Ambassador Rewards and Shared Expenses are
retained before any Net RRSC distributions to CoVestor.

 

2. CoVestment Terms and Conditions

While this LOIR is non-binding and intended solely as a basis for further discussion, I propose the following initial terms:

CoVestment Amount: Out of the 50 Million BIUs currently available in the ME Project, with 1 BIU equal to €1.00 EUR, I anticipate to make a CoVestment in the amount of:

{covestmentAmount19} ({covestmentAmount17} {selectCurrency28}) for {covestmentAmount17} BIUs.

Distribution Schedule: Royalty distributions will commence on the 1st day of every month, beginning 90 Days from the day of initial CoVestment (the “Incubation Period”), and executed on the 1st Day of the Succeeding Month. CoVestor’s first distribution shall include 60 Days of Royalties from the initial Incubation Period. A “No Surrender Period” shall be in effect for 366 days from the date initial CoVestment is received by ME for the Project. CoVested capital Royalty distributions are non-compounding.

CoVestment Terms: After 1 Year and 1 Day being the “Full Vesting Period,” CoVestor will have the option to call back their principal CoVestment and/or re-CoVest an amount for an additional period upon mutually agreed terms available at that time. Additional contributions ≥ €25,000 EUR may be authorized during the Full Vesting Period; with royalty calculations pro-rated from the date contribution was received by ME for the Project, and concomitant with the next qualified distribution period.

Redemption Terms: Any principal capital contributions redeemed by the CoVestor during the No Surrender Period will include a reduction of 10% from the amount redeemed for shared expenses. Any redemption occurring after the No Surrender Period will include a reduction of 4% from the amount redeemed for shared expenses.

Term Flexibility: After the Full Vesting Period, the CoVestor may elect to surrender their BIUs and retrieve their principal capital and/or continue their subscription for an additional term as mutually agreed with ME, and/or Opportunity available at that time.

Due Diligence: This LOIR is subject to satisfactory completion of due diligence and the execution of definitive agreements detailing the terms of the CoVestment.

 

3. Purpose and Next Steps

The purpose of this LOIR is to affirm our interest and facilitate further discussions and due diligence regarding the Opportunity. Upon your acknowledgement, I propose to schedule a meeting at your earliest convenience to review the specific details and explore the feasibility of this CoVestment. I are prepared to engage in negotiations regarding definitive agreements that accurately reflect the interests and obligations of both parties.

 

4. Confidentiality and Exclusivity

I recognize and appreciate the confidentiality required in discussions of this nature. I agree to treat all information disclosed during this process as confidential and expects that all communications and negotiations will be held in strict confidence. Furthermore, any exclusivity period for discussions or negotiations will be mutually agreed upon in subsequent agreements.

 

5. Non-Binding Nature

This LOIR is intended solely as a statement of intent and does not constitute a legally binding commitment, except for any provisions pertaining to confidentiality and exclusivity as may be separately agreed upon. The proposed terms are subject to further refinement and the approval of relevant corporate bodies.

 

6. Non-Solicitation Acknowledgment.

I affirm that I have not been solicited, induced, or pressured by any party to enter into this Agreement, and have done so voluntarily.

 

7. Conclusion

I also desire to:  {intentionsYou}

I appreciate the opportunity to explore a mutually beneficial CoVestment arrangement in the innovative ME Project. I believe that our association together could offer substantial growth and strategic advantages for both parties. Please indicate your receipt and concurrence with this LOIR so that I may proceed with more detailed discussions.

 

8. Electronic Data Transmission (“EDT”)

Email, facsimile copies or photocopies of documents or agreements pertaining to this subject are declared and regarded as valid and equal to the original, provided they are represented by proper signatories. Originals may be obtained upon request. EDT shall be deemed valid and enforceable in respect of any provisions of this Agreement.

As applicable, this agreement shall:

• Incorporate U.S. Public Law 106-229, “Electronic Signatures in Global and National Commerce Act” or such other applicable law conforming to the UNCITRAL Model Law on Electronic Signatures (2001) and;
  
  
• ELECTRONIC COMMERCE AGREEMENT (ECE/TRADE/257, Geneva, May 2000) adopted by the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT);
  
  
• EDT documents shall be subject to European Community Directive No. 95/46/EEC, as applicable. Either Party may request hard copy of any document that has been previously transmitted by electronic means provided hoIver, that any such request shall in no manner delay the PARTIES from performing their respective obligations and duties under EDT instruments.

 

{form_title} For and on behalf of {companyName} :
Signed below on this effective date {date} from I.P. Address {ip}

By: {name}, {title}

Submission I.D. {id}