"The LOU is binding on the parties, but contemplates them entering into a more definitive contract in the future."
The verbiage you quoted is from Eternal Image Form 8-K dated February 17, 2010, as compiled and submitted by EI to the SEC.
That sentence is NOT contained in the actual Letter of Understanding dated February 16th.
The closest that I can come is:
"Therefore, when appropriately countersigned by Matthews, this Letter of Understanding shall represent the parties’ mutual agreement with respect to the subject matter herein, until such time as the parties otherwise execute and/or exchange a more definitive agreement."
"Agreement"....not necessarily "contract".
My interpretation of EI's verbiage is that they now have a LOU, but they contemplate entering into a contract, which will contain more definitive terms, in the future.
As usual, JMHO.
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