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Types of security and number of shares issued, price per share
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Conversion price: number of common shares per
preferred share
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Additional formulas
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Registration rights: demand rights; "piggyback";
registration expenses; transfer of rights
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Use of proceeds
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Right of first offer to purchase of new securities
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Stock restriction agreements
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Reserved shares
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Non-competition agreement
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Veto rights: next financings, acquisitions, mergers
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Veto rights:
- Sale and other disposition of assets
- Dividends
- Amount of stock issued
- Borrowing and leasing
- Compensation of executive employee staff
- Ownership, sale or access of technology
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Rights of inspection
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Right to elect board members, attend board meetings
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Vesting rights of employees
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Receipt of financial statements
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Closing expenses
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See also:
How To Structure Your Deal
Sample Term Sheet for Private Placement of Convertible
Preferred Stock
Private Placement Stock Purchase: Terms and Conditions for Securities
Offering
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