olivo-loi-draft-v1

NON-BINDING LETTER OF INTENT (DRAFT)

Date: [TBD]
Buyer: Brainforge Labs, Inc. (or affiliate, “Buyer”)
Seller: [Olivo legal entity name] (“Seller”)
Transaction: Product analytics client-book transfer and related transition services

Status: Draft for business discussion only. Not legal advice. Subject to legal counsel review.

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1) Transaction overview

Buyer proposes to acquire defined economic rights and transition ownership of Seller’s eligible product analytics client book (the “Transferred Book”), subject to diligence and definitive agreements.

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2) Consideration framework (3 scenarios)

Primary method:

• Enterprise Value (“EV”) = Adjusted TTM EBITDA x Scenario Multiple

Scenario grid:

• Scenario 1 (Defensive): 2.75x
• Scenario 2 (Base): 3.25x
• Scenario 3 (Outperform): 3.75x

Illustrative placeholder assumptions:

• transferred annual revenue baseline: $500,000
• adjusted EBITDA margin: 35%
• adjusted TTM EBITDA: $175,000

Illustrative EV outputs:

• Scenario 1: $481,250
• Scenario 2: $568,750
• Scenario 3: $656,250

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3) Performance-linked structure

• payments made monthly in arrears on collected revenue basis
• base share reference: 22%-28% of retained transferred revenue
• growth kicker reference: 10%-15% of incremental transferred-account revenue above baseline
• term target: 12-18 months, hard stop 24 months
• retention gates:
  • GRR <85%: payout pause
  • GRR 85%-89%: partial payout
  • GRR >=90%: full payout eligibility
• monthly payout ceiling tied to transferred-account gross profit

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4) Workflow C delivery integration covenant (binding)

Seller agrees to commercially reasonable cooperation on delivery integration during the transition period, including:

• participation in named account handoff plan for in-scope accounts
• support for operator/GM lane activation in Brainforge’s existing product analytics service line
• participation in client continuity and expansion planning sessions for transferred accounts
• provision of account context needed for delivery coverage mapping

Milestone-linked contingent consideration:

• objective Workflow C milestones include:
  • Tier A/B account handoff completion
  • GM lane activation
  • service-line expansion motion launch

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5) Diligence and exclusivity

LOI remains subject to completion of:

• account-level trailing 12-month monthly revenue
• retention/churn and concentration validation
• contract assignability/consent analysis
• Day 1 and Day 100 integration plan with owners

Exclusivity:

• Seller agrees to 45-60 day exclusivity window upon LOI execution.

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6) Binding and non-binding terms

Binding sections (subject to legal drafting):

• confidentiality confirmation
• exclusivity
• governing law and venue
• expenses
• Workflow C cooperation covenant

All other sections are non-binding statements of present intent and are subject to definitive agreements.

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7) Signature blocks (non-binding intent)

Buyer: ____________________ Date: __________
Name/Title: ________________________________

Seller: ____________________ Date: __________
Name/Title: ________________________________