USA investors, use this Letter of Intent to set out your intentions to purchase preferred stock in a company planning an initial public offering.

The proposed transaction would see the investor purchasing preferred stock convertible into shares of common stock at any time. The preferred stock will be subject to mandatory conversion in the event of a Qualified IPO.

Non-cumulative dividends will accrue on the preferred stock. Upon conversion into common stock, all dividends would be cancelled. In addition, the company will create an option pool of unallocated shares to attract and provide incentives for key employees.

The Letter of Intent itself is intended solely as a basis for discussion, not a legal contract, and it is not legally binding except as it relates to the negotiations between the parties.

This USA Letter of Intent to Purchase Preferred Stock is provided in MS Word format, and is fully editable to fit your circumstances.