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A Letter Of Intent For Transfer Of Department is commonly used in German business transactions as a preliminary step before executing a final department transfer agreement. This document is particularly relevant when companies are planning to restructure, optimize operations, or realign business units. It serves as a roadmap for the proposed transaction, outlining key commercial terms, due diligence requirements, and timeline while maintaining flexibility for detailed negotiations. Under German law, special attention must be paid to employee protection under §613a BGB, works council consultation requirements, and data protection regulations. The document typically includes both non-binding elements regarding the proposed transfer and binding provisions for confidentiality and exclusivity. It's especially important in complex corporate structures where careful planning and stakeholder communication are essential for successful department transfers.

1. Header and Date: Formal letter heading including date and addressee details

2. Opening Statement: Clear statement of intent to explore the department transfer

3. Identification of Parties: Full legal names and addresses of both parties

4. Subject Matter: Detailed description of the department to be transferred

5. Key Commercial Terms: Outline of principal terms including scope, timeline, and general conditions

6. Due Diligence: Framework for information sharing and evaluation process

7. Confidentiality: Binding confidentiality obligations regarding the proposed transaction

8. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions

9. Timeline: Proposed schedule for negotiation and completion

10. Closing: Signature blocks and formal letter closing