Term Sheet: Indemnification and Assignment

Posted on 07. Jul, 2008 by in Preferred Stock Rights

Originally posted on Feld Thoughts “Term Sheet: Indemnification and Assignment” by Brad Feld, reposted with permission. “Indemnification: The bylaws and / or other charter documents of the Company shall limit board member’s liability and exposure to damages to the broadest extent permitted by applicable law.  The Company will indemnify board members and will indemnify each [...]

Term Sheet: Initial Public Offering Shares Purchase

Posted on 07. Jul, 2008 by in Preferred Stock Rights

Originally posted on Feld Thoughts “Term Sheet: Initial Public Offering Shares Purchase” by Brad Feld, reposted with permission. Jason and I are planning to finish strong with some serious stuff in our term sheet series, but we figured we’d put one more term in that has us sniggling whenever we see it (a “sniggle” is a [...]

Term Sheet: Restriction on Sales, Proprietary Inventions, and Co-Sale Agreement

Posted on 07. Jul, 2008 by in Preferred Stock Rights

Originally posted on Feld Thoughts “Term Sheet: Restriction on Sales, Proprietary Inventions, and Co-Sale Agreement” by Brad Feld, reposted with permission. I had good intentions earlier this week to try to crank out the balance of the term sheet series, but it turned into a busy week.  Since I’m still muddling through the set of [...]

Term Sheet: Voting Rights

Posted on 07. Jul, 2008 by in Preferred Stock Rights

Originally posted on Feld Thoughts “Term Sheet: Voting Rights and Employee Pool” by Brad Feld, reposted with permission. “Voting Rights: The Series A Preferred will vote together with the Common Stock and not as a separate class except as specifically provided herein or as otherwise required by law.  The Common Stock may be increased or decreased [...]

Term Sheet: Right of First Refusal

Posted on 07. Jul, 2008 by in Preferred Stock Rights

Originally posted on Feld Thoughts “Term Sheet: Right of First Refusal” by Brad Feld, reposted with permission. Today’s “term that doesn’t matter much” from our term sheet series is the Right of First Refusal. When we say “it doesn’t matter much”, we really mean “don’t bother trying to negotiate it away – the VCs will insist on it.” [...]

Term Sheet: Information and Registration Rights

Posted on 07. Jul, 2008 by in Preferred Stock Rights

Originally posted on Feld Thoughts “Term Sheet: Information and Registration Rights” by Brad Feld, reposted with permission. When Jason and I last wrote about term sheets, Jack was still trying to save the world (surprise – he did) and we dealt with a meaty and important issue – vesting. For completeness (and because all good [...]

Term Sheet: Conversion

Posted on 07. Jul, 2008 by in Preferred Stock Rights

Originally posted on Feld Thoughts “Term Sheet: Conversion” by Brad Feld, reposted with permission. While lots of VCs posture during term sheet negotiations by saying “that is non-negotiable”, terms rarely are (as you’ve likely inferred from previous posts on term sheets be me and Jason.) Occasionally, a term will actually be non-negotiable. In all the VC [...]

Term Sheet: Redemption Rights

Posted on 07. Jul, 2008 by in Preferred Stock Rights

Originally posted on Feld Thoughts “Term Sheet: Redemption Rights” by Brad Feld, reposted with permission. If you are avid followers of the TV series 24 (as Jason and I are), you’ll recognize that the next item in our term sheet series – Redemption at Option of Investors – has similar characteristics to the regular exchange Jack has with [...]