Contents:

1.1: Clauses and Definitions 1.1.1: Definitions: Affiliate 1.1.3: Definitions: Bankruptcy 1.1.4: Definitions: Book Value per Share 1.1.5: Definitions: Brokerage 1.1.6: Definitions: Business Day 1.1.7: Definitions: Cause 1.1.8: Definitions: Change of Control 1.1.9: Definitions: Common Stock 1.1.10: Definitions: Closing Price 1.1.11: Definitions: Company Material Adverse Effect 1.1.12: Definitions: Consolidated Cash Flow 1.1.13: Definitions: Contingent Liability 1.1.14: Definitions: Environmental Law 1.1.15: Definitions: Financial Statements 1.1.16: Definitions: Indebtedness 1.1.18: Definitions: Knowledge 1.1.19: Definitions: Market Price 1.1.19.a: Definition: Most Favored Nations Pricing 1.1.20: Definitions: Net Asset Value Determined by Appraisal 1.1.21: Definitions: Person 1.1.22: Definitions: Proprietary Rights 1.1.23: Definitions: Public Offering 1.1.24: Definitions: Subsidiary or Subsidiaries 1.1.25: Definitions: Tangible Net Worth 1.1.26: Definitions: Value of the Securities 1.1.27: Definitions: Waste or Contamination Site 1.1.28: Definitions: Net Sales 1.2: Sample Risk Factors 1.2.1: Sample Disclosures of Risks Associated with Terrorist Attacks 1.3: Miscellaneous Provisions 1.3.1: Miscellaneous Provisions: Arbitration 1.3.2: Miscellaneous Provisions: Interpretation and Rules of Construction 1.3.3: Miscellaneous Provisions: Forward-Looking Statements Legend 1.3.4: Miscellaneous Provisions: Remedies Cumulative 1.3.5: Miscellaneous Provisions: Severability 1.3.6: Miscellaneous Provisions: Entire Understanding 1.3.7: Miscellaneous Provisions: Remedies 1.3.8: Miscellaneous Provisions: Assignment; No Third-Party Assignments 1.3.9: Miscellaneous Provisions: Judgments Conclusive 1.3.10: Miscellaneous Provisions: No Agency 1.3.11: Miscellaneous Provisions: Legal Fees 1.3.12: Miscellaneous Provisions: Construction 1.3.13: Miscellaneous Provisions: Service of Process 1.3.14: Miscellaneous Provisions: Consent to Jurisdiction 1.3.15: Miscellaneous Provisions: Waiver of Jury Trial 1.3.16: Miscellaneous Provisions: Further Assurances 1.3.17: Miscellaneous Provisions: Choice of Law 1.4: Deadlock Provision: Model Clauses 1.5: Downloadable Forms (Deprecated) 2.1: C Corporations, S Corporations, Multiple Corporations and Other Forms 2.1.1: Note on the Corporate Form 2.1.1.a: C Corporations 2.1.1.b: S Corporations 2.1.1.c: Multiple Corporations 2.1.2: Other Forms 2.1.2.a: Sole Proprietorships 2.1.2.b: Business Trusts 2.1.2.c: Joint Ventures 2.1.2.d: Partnerships 2.1.3: Note on Limited Liability Companies 2.1.4: Note on Corporation versus Limited Liability Company 2.1.4.a: Options on LLC Units; Difficulties in Drafting and Implementation 2.1.4.b: Liquidity 2.1.4.c: Fees and Expenses (LLC and C Corp.) 2.1.4.d: Flexibility versus Formality 2.1.4.e: Familiarity 2.1.4.f: Liability 2.1.4.g: Tax Issues Influencing the Choice 2.1.4.h: Conversion of an LLC to a C Corporation 2.1.4.i: LLCs in Bankruptcy: Trustee's Powers to Compell Asset Sales by Single Member LLCs (Ashley Albright) 2.1.4.j: Choosing Between The Delaware LLC Act and Other LLC Acts For Use in Private Equity Deals 2.1.4.k: How Tax-Exempt Investors Can Avoid UBTI: Structuring Private Equity Investments in LLCs 2.2: Choice of Domicile 2.2.1: Delaware Organization Franchise Tax 2.2.1.a: Calculation of Delaware Franchise Tax ('03-04): Assumed Par Value Method Example 2.2.2: Personnel in Delaware Secretary of State's Office and Contact Information 2.2.3: Special Issues: Traps for the Unwary 2.2.4: Reincorporating in Delaware 2.3: Organization of Corporation 2.3.1: Certificate of Incorporation (Model) 2.3.1.a: Note on Corporate Name 2.3.1.b: Note on Domain Name 2.3.1.c: Note on Service Providers 2.3.1.d: Note on Purpose Clause 2.3.1.e: Note on Par Value 2.3.1.f: Note on Number of Authorized Shares 2.3.1.g: Note on Common Stock 2.3.1.g.i: Common and Preferred Stock and Effects on Valuation 2.3.1.g.ii: Case Study: The Common and Non-convertible Preferred Structure 2.3.1.h: Note on Preferred Stock 2.3.1.h.i: So You Think You Own Preferred Stock? 2.3.1.h.ii: Preferred Stock Positions in Distressed Companies: The Secured Debt Alternative 2.3.1.i: Note on Certificate of Designation 2.3.1.j: Note on Pre-Emptive Rights 2.3.1.k: Note on Cumulative Voting 2.3.1.l: Note on Transfer Restrictions 2.3.1.m: Note on Contractual Transfer Restrictions 2.3.1.n: Note on Indemnification 2.3.1.o: Agreement of Indemnification of Directors and Officers (Model) 2.3.1.p: Indemnification Trust Agreement (Model) 2.3.1.q: Note on Exculpation 2.3.1.r: Note on Merger Moratorium Statutes 2.3.1.s: Note on Election of the First Board of Directors 2.3.1.t: Note on Amendments 2.3.1.u: VC's and D&O Insurance 2.3.1.v: Duty of Care: Analysis of Delaware Law in Light of In re Walt Disney* 2.3.2: ByLaws (Sample Form) 2.3.2.a: Note on ByLaws 2.3.2.b: Note on Interested Directors 2.3.2.c: Note on Audit Committee and Stock Exchange/Nasdaq Standards 2.3.2.d: Note on Stock Book 2.3.2.e: Note on Consideration for Issuance of Shares 2.3.2.f: I.R.C. Section 351 2.3.2.g: Issuance for Notes and/or Services 2.3.2.h: Payment by an Employee Non-Recourse Note 2.4.1: Choices of Business Entity 2.4.2: Federal Income Tax Consideration in the Choice of Entity 2.4.2.a: State Tax and Fee Traps 2.5: Organization Meeting Minutes 2.6: Organization of an LLC 2.7: Model Certificate of Formation 2.8: Limited Liability Company Agreement (Model) 2.9: Certificate of Designation (Series A Convertible Preferred) (Model) 2.9.1: Note on Preferred Dividend PIK Feature 2.9.1.d.ii: The Mechanics of Dilution 2.9.2: Note on Participating Preferred and Variations Thereon 2.9.2.a: Capped Liquidation Preferences 2.9.3: Note on Conversion Rights 2.9.4: Note on Anti-Dilution Protection 2.9.4.a: Antidilution Protection Overview 2.9.4.a.i: Note on Exception to Definition of Dilutive Issuance 2.9.4.b: Note on Full Ratchet and Weighted Average 2.9.4.c: Specific Anti Dilution Issues: The Death Spiral or The Infinite Regress 2.9.4.d: Limiting Anti-Dilution Provisions: Time limits; Performance Weights, Percentage Caps & Others 2.9.4.d.i: Case Study: Relationship of Dilution, Valuation & Investor Return 2.9.4.d.iii: Full Ratchet & Weighted Average (Broad and Narrow Based) Examples 2.9.4.e: Right to Amend, Grant Waivers, and Approve Fundamental Changes 2.9.5: Note on I.R.C. §305 2.9.6: Note on Exploding Preferred, Redeemable at Option of the Holder 2.9.6.a: Broad-based Weighted Average 3.1: Subscription Agreement and Execution Documents (Model) 3.1.1: Subscription Agreement for Series A Round (Short Form) 3.1.1.a: General Legal Issues: Private vs. Public Offerings; Broker-Dealer & Investment Advisor Registration 3.1.2: Appendix A - Consideration To Be Delivered 3.1.3: Accredited Investor Certificate 3.1.4: Confidential Purchaser Questionnaire 3.1.4.c.x: Note on Subscription Agreement 3.2: Commentary on Angel Financing Round 3.2.1: Convertible Note Term Sheet (Next Round Pricing) 3.2.2: Convertible Bridge Note ('Next Round' Pricing) (Model) 3.2.3: Subordinated Promissory Note (Priced Off Next Round Valuation) 3.3: Selected Tax Issues at Angel Round Stage 3.3.1: 1244 Stock 3.3.2: Note on Qualified Small Business ("QSB") Stock and Rollovers Sections 1202 and 1045 3.4: Locating Sources of Financing 3.4.1: Sources of Financing 3.4.1.a: Professional Investors: VC Funds 3.4.1.b: Directories of Venture Capital Funds 3.4.1.c: Backdoor Finance: Tax Deductions 3.4.1.d: Direct Federal Subsidies: SBIR Grants 3.4.1.f: SBA Loans 3.4.1.g: SBICs 3.4.1.h: Bank Financing 3.4.1.i: Capital From Operations 3.4.1.j: "High Net Worth" Individuals a/k/a Angels 3.4.1.k: Sources of Information on Angel Capital 3.4.1.k.i: Angel Clubs: Contact Information 3.4.1.k.ii: Report from First Organized Angel Summit 3.4.1.l: Use Your Professionals 3.4.1.m: Venture Capital Clubs 3.4.1.n: Concept IPOs: Flotations Before Operations 3.4.1.o: Shells, SPACs, Reverse Acquisitions and Reverse or "Backdoor" IPOs 3.4.1.p: Penny Stock Regulation 3.4.1.q: Self-Underwriting 3.4.1.r: The New Market Tax Credit: Opportunity for Risk Capital Proposal for Modest Change 3.4.1.s: New Market Tax Credit: Temporary Regulations Issued (March 2004) 3.5: Note on Financing Strategies: Issues to Ponder as the Money Is Being Raised 3.5.1: The 'Early Closing' Strategy 3.5.2: How Much to Raise in the First Round? 3.5.3: The 'Too Much Money' Problem 3.5.4: 'Who Else Is In?': The Art of Selecting Investors Wisely 3.5.5: Tax Incentives and Informal (Angel) Capital: Federal & State Incentive Review and Commentary 3.6: Term Sheet For Convertible Promissory Notes 3.6.1: Model Promissory Note 3.6.1.a: Convertible Promissory Note (Short Form) 3.6.1.b: Bridge Note--Subordinated Convertible Promissory Note (Non-recourse) 3.7: Community Development Venture Capital: Analysis, Best Practices and Case Studies 3.7.1: Community Development Venture Capital: Best Practices & Case Studies 3.7.2: Best Practices: Federal & State Tax Incentives for Venture Capital Investors 3.7.3: Best Practices: Non-Profit/VC Investor Networks 4.1: Note on Preparation and Content of Placement Memorandum ('PPM') 4.2: Placement Memorandum (Series A Round) (Model) 4.2.1: Note on Risk Factors 4.2.2: Note on the "Bespeaks Caution" Doctrine 4.2.3: Note on the Private Securities Litigation Reform Act 4.2.3.a: Note on Trends in Securities Litigation 4.2.4: Note on Audited Statements and Projections 4.2.5: Note on Business Disclosures: Suggested Areas to Cover 4.2.6: Further Note on Projections: Impact On Valuation Issues 4.2.7: Ten Tips to Magnetize Your Business Plan 4.2.7.a: Why Business Plans Dont Get Funded 4.3: Commentary on Placement Agents 4.3.1: Placement Agent Agreement (Model Form) 4.3.1.a: Placement Agent: Engagement Letter and Agreement (Short Form) 4.3.1.b: Referral Letter Agreement 4.3.2: Note on Placement Agents vs. Finders 4.3.2.a: Commentary on Boston Globe article on Unregistered Placement Agents 4.3.3: Valuation of Private Companies 4.3.3.a: Valuation: Certain Terminology--Pre-Money; Post-Money 4.3.3.b: Valuation: How to Calculate Internal Rates of Return 4.3.3.b.i: Time Value of Money Tables 4.3.3.c: Valuation: Value to Whom? 4.3.3.d: Valuation: Discounting the Future-The Venture Capital Method 4.3.3.d.i: Valuation: Stanford Business School Note on VC Valuation 4.3.3.e: Valuation: Comparables 4.3.3.e.i: Valuation: Fair Market Value and the Use of Comparables 4.3.3.e.ii: Case Study: Comparables Analysis in Determining Valuation 4.3.3.e.iii: Valuation: Effects of the Financing Environment & Intangibles; Risk and Exit Strategy for Investors 4.3.3.e.iv: Why Venture Investors Need To Shoot for High Returns 4.3.3.f: Valuation: Net Present Value 4.3.3.g: Portfolio Management 4.3.3.h: Option Pricing Model 4.3.3.i: Herd Instinct: What Everyone Else Is Doing 4.3.3.j: Valuation: Nonnumeric Factors 4.3.3.k: Efforts to Standardize Valuations 4.3.3.l: Miscellaneous Valuation Issues 4.3.3.m: Special Investors and Special Securities 4.3.3.n: Deal Terms: The Missing Piece of the Valuation Puzzle 4.3.3.o: Private Equity Valuation, a Significant (Legal) Decision 4.4: Private Placement Procedures for Securities Offerings 4.5: Valuation: Discounted Cash Flow (DCF) Overview 5.1: Term Sheet (Model Form) 5.1.1: Term Sheets: Important Negotiating Issues 5.1.1.a: What to Look Out For in a Term Sheet: An Attorney's View 5.1.1.a.i: Term Sheet (West Coast Version) 5.1.1.b: Term Sheet (Neutral to Investors and Issuer) 5.1.2: Note on 'No Shop, No Solicitation' Clauses 5.1.3: Exclusive Dealing Provisions 5.1.3.a: Note on Binding Obligations Inadvertently Created by the Term Sheet 5.1.4: Note on Counsel's Conflicting Roles in Drafting Term Sheets 5.1.5: Note on 'Pay-or-Play' 5.1.6: Alternative Term Sheet B Round (Cram Down Features) 5.2: Survey: Value of Deal Terms to the VCs 5.3: Fiduciary Duties of Controlling Shareholders in Down Rounds 5.3.1: Fiduciary Duty In Corporate Governance: Public Corporations 5.3.2: Fiduciary Duty In The Close Corporation Context 5.3.3: Cases Specifically Involving Dilutive Recapitalizations 5.3.4: Fiduciary Duty In Corporate Governance: Conclusion 5.3.5: Defenses to Burn Outs... 'Up the Ladder' Warrants 5.3.6: Duties of Directors 'In The Vicinity of Insolvency' 5.3.7: Harsh Terms but Legal Terms: The sale of Nishan Systems 5.4: Confidentiality Agreement (Short Form) 5.4.1: Non-disclosure Agreements In Venture Capital Transactions 5.4.1.a: Non Disclosure Agreement: Venture Capital Fund and Prospective Portfolio Investment 5.4.2: Beware the NDA 5.5: Regulation D and Other Exemptions from Registration 5.5.1: General Note on Regulation D 5.5.2: Table I 5.5.3: 'General' Solicitation and 'General' Advertising 5.5.4: Inadvertent Violations: Herein of Rule 508 5.5.5: 'Accredited Investor' Definitions 5.5.6: Entities 5.5.7: Miscellaneous 5.5.8: Practical Precautions 5.6: State Regulation: What's Left of Blue Sky 5.6.1: Federal Pre-Emption 5.6.2: Pre-Offer Filings in New York 5.6.3: Post-Sale Filings 5.6.4: Offerings Where State Law Not Pre-Empted (i.e., Not Rule 506 Offerings) 5.7: Integration Amongst Offerings 5.8: Intrastate Offering Exemption: Section 3(a)(11) and Rule 147 5.9: Section 4(2) after Regulation D 5.10: Model Memorandum Regarding the Procedures for Offering and Sale of Shares in NEWCO, Inc. 5.11: Rule 701 Offerings 5.11.1: Note on Rule 701 Offerings 5.11.2: Note on Consultants and Advisors Under Rule 701 and Form S-8 5.12: Other Employee Exceptions 5.13: Regulation S 5.14: Regulation A 6.1: Stock Purchase Agreement (Model Form) 6.1.1: Preferred Stock Purchase Agreement (Short Form) 6.1.2: Note on Material Adverse Change 6.1.3: Note on Environmental Representations 6.1.4: Note on Covenants 6.1.5: Note on Time Limits 6.1.6: Note on Baskets and Thresholds 6.1.7: Note on Credit for Tax Benefits 6.1.8: Note on Hart-Scott-Rodino 6.1.9: Schedule of Exceptions (Model Form) 6.1.9.a: Note on Schedule of Exceptions (Disclosure Schedule) 6.1.10: An Efficient Solution for Multiple Closings 6.2: Subscription Agreement, Convertible Preferred Stock (Model) 6.2.1: Note on Subscription Agreement 6.3: Stockholders Agreement (Model) 6.3.1: Note on Controlling Shareholder and/or Director Liability 6.3.1.a: Shadow Directors and Controlling Shareholders: Duties and Liability 6.3.2: First Refusal Agreement (Model) 6.3.2.a: Note on Limiting Rights of First Refusal and Information Rights to "Major Investors" 6.3.3: Stockholders Agreement 6.4: Common Stock Warrant (Model) 6.4.1: Note on Warrant Anti Dilution In Case of a Down Round 6.4.1.a.i: Common Stock Warrant: Private Company; Issuer Favorable (Short Form) 6.5: Registration Rights Agreement (Model) 6.5.1: Note on Registration Rights Agreement 6.5.1.a: Registration Rights Agreement (Short Form) 6.5.2: Note on Expenses 6.5.3: Note on Rule 415 'Shelf' Registrations 6.5.4: Note on Indemnification for Secondary Offerings 6.5.5: Note on Lockups 6.6: Opinion of Issuer's Counsel 6.6.1: Note on Opinion of Issuer's Counsel 6.7: Due Diligence Checklist 6.7.1: Due Diligence Checklist (West Coast Version) 6.8: Cram Down's: Anatomy of a Round 'Cramming' Down the Prior Series of Preferred 6.10.1: Note on Representations and Warranties 6.10.1.a: Representation and Warranties Insurance as a Strategic Negotiation Tool for Dealmakers 6.10.1.b: Stock Purchase Agreement (Short Form Providing for Option to Purchase Additional Shares) 6.10.1.c: Stock Purchase Agreement for Conceptus, Inc. 7.1.1: Compensation Generally 7.1.1.a: Securing the Key Employees 7.1.1.b: Commentary: Getting Creative with Executive Compensation 7.1.2: Restricted Stock to Employees 7.1.2.a: Stock Subject to Vesting (Substantial Risk of Forfeiture): I.R.C. § § 83(a) and (b) 7.1.2.a.i: Section 83 and LLC Units 7.1.2.b: Form of Section 83(b) Election 7.1.2.c: Equity Compensation Plans for LLCs: Rev. Proc. 93-27 and Rev. Proc. 2001-43 7.1.3: Use Of Preferred Stock To Shelter The Disproportionately Low Price To The Sweat Equity 7.1.4: 'Lapse Of Time' Approach; Incorporate And Issue Stock Early, Prior To Cash Investors 7.1.5: Stock Options 7.1.5.a.i: Stock Options and Their Effect on Capital Structure 7.1.5.a.ii: Director and Advisory Board Member Compensation - The Hidden Costs of Added Value 7.1.5.a.iii: Advisory Board: Member Agreement Form 7.1.6: Incentive Stock Options 7.1.7: Nonqualified Stock Options 7.1.8: Deep Discount NSOs 7.1.9: ISOs versus NSOs 7.1.9.a: Equity Compensation Structures for Venture-Backed Companies Post-Enron, Post-Market Bust 7.1.9.b: After a Down Round: Alternatives for Employee Incentive Plans 7.1.9.c: Restricted Stock or Options? Rethinking Equity Incentive Plans 7.1.10: Stock Appreciation Rights (SARs) 7.1.11: Accounting for Options 7.1.12: Convertible Debt Plans 7.1.13: 'Grossing Up' 7.1.14: Phantom Plans 7.1.15: Life Insurance (Split-Dollar) 7.1.15.a: Is Split Dollar Dead: What to Do With Existing Plans and Do New Split Dollar Plans Make Sense? 7.1.16: Simplified Employee Pension Plans 7.1.17: Employee Stock Purchase Plans 7.1.18: Deferred Compensation: Rabbi Trusts 7.1.19: The 'Golden Parachute' Rules 7.1.20: Nondeductibility of $1 Million Compensation; § 162(m) 7.1.21: Parachutes and the ERISA Trap 7.1.22: SEC Disclosure Rules 7.1.23: '34 Act Section 16 - Impact on Options 7.1.24: Option Repricing and Reloads 7.2: Employment And Stock Purchase Agreement (Model) 7.2.1: Note on Cause 7.2.2: Note on Severance 7.2.3: Note on Constructive Discharge 7.2.5: Note on Recall of Unvested Equity 7.3: Confidentiality And Non-Competition Agreement (Model) 7.3.1: Note on Non-Compete 7.3.2: Employee NDA (Noncompetition, Confidentiality, Inventions) 7.3.3: Mutual Non-Disclosure Agreement (Model Form) 7.4: Stock Incentive Plan (Model) 7.4.1: Note on Stock Incentive Plans 7.4.2: Note on Merger Effects 7.5: Stock Option Award Agreement (Model) 7.5.1: Exhibit A - Exercise Notice 7.5.2: Exhibit B - Investment Representation Statement 7.6: Model Stock Appreciation Rights Agreement 7.7: Software Professional Service Contract (Pro-Consultant) 7.8: Fair Labor Standards Act: Management and Investor Liability (Legal Updates) 7.9: Fair Credit Reporting Act 7.9.1: Fair Credit Reporting Act: Background Checks--Proceed With Caution (Testa, Hurwitz & Thibeault) 7.10: Vicarious Liability: Napster, Hummer Winblad and New-World Risks for VCs 8.1: Introductory Note on IPOs 8.1.1: The IPO Process: Views from the CFOs 8.2: Underwriting Agreement For IPO (Incl. Insider Secondary Sales and Options to Underwriters) (Model) 8.2.1: Note on 'Green Shoe' Option 8.2.1.a: Company Counsel Opinion 8.2.2: Note on Expenses of Going Public 8.2.3: Note on Timing 8.2.4: Note on the First Meeting 8.2.5: Note on Accounting for 'Cheap' Stock and Options Prior to the Effective Date 8.2.6: Note on Gun Jumping and Quiet Period 8.2.6.a: IPO Disclosure: The Effect on the Cost of Capital 8.2.7: Note on Electronic Filings 8.3: Directors and Officers Questionnaire (Model) 8.4: Due Diligence Guidelines (IPO) (Model) 8.4.1: Note on Liability for Misstatements and Omissions: Use of Risk Factors 8.5: The Prospectus and Registration Statement 8.5.1: Plain English Initiative 8.5.2: Summary of SEC Plain English Comments 8.5.3: Note on Projections and Other Soft Information 8.5.4: Corporate Formalities 8.5.4.a: Board Vote 8.5.4.b: Officers' Certificates 8.5.5: Disclosure of Executive Compensation 8.5.6: Global Research Analyst Settlement Proving Unsettling for Issuers (Hale & Dorr LLP) 8.6: Accountant's Letter 8.7: Reply to Staff Letter of Comment 8.8: Note on the Road Show 8.9: Note on Blue Sky Laws 8.10: Agreement to Lockup (Model) 8.10.1: Note on Lockups 8.10.2: Lockup Valuation Effects 8.11: NASD Approval of Underwriter Compensation 8.12: Directed Shares and Hot Issues 8.13: Nasdaq Stock Market Listing Requirements 8.13.1: National Market Initial Listing and Continued Listing Standards 8.13.2: SmallCap Market Listing 8.13.3: Nasdaq Audit Committee Requirements 8.13.3.a: NASDAQ Corporate Governance Rule Proposals 8.14: NYSE Listing Standards 8.14.1: Rules for Publishing Quotations in the Pink Sheets and OTCBB 8.14.1.a: Appendix A: SEC Rule 15c2-11 8.14.1.b: Appendix D: NASD Rule 6740 8.14.1.c: Appendix E: Sample List of Market Makers 8.14.1.d: Appendix F: SEC Rule 15g-9 8.14.1.e: Appendix G: SEC Schedule 15G pursuant to Rule 15g-2 8.15: Note on Reverse IPOs 8.15.1: Reverse IPOs: Table of Company Results 8.16: Integration Problems: Private Offerings Shortly Pre- and Post- a Public Filing 8.16.1: Rule 152: Completed Private Offerings Followed by an IPO 8.16.2: Rule 155(b) Abandoned Private Offering Followed By an IPO 8.16.3: Busted IPO Followed by a Private Offering: Rule 155(c) 8.16.4: The Black Box and Squadron Ellenoff No Action Letters 8.17: Note on Private Investment in Public Equity Securities (PIPES) 8.17.1: PIPE and Rule 144A Transactions (2003 and 2004) (Hale & Dorr LLP) 8.18: SEC Registration Process 8.18.1: Overview of the SEC's Division of Corporation Finance 8.18.2: Prefiling Issues and Conferences 8.18.3: Filing with the SEC's Division of Corporation Finance 8.18.4: Screening Process 8.18.5: Review Status 8.18.6: Requesting Effectiveness of Registration Statements 8.18.7: Effectiveness of Registration Statements 8.18.11: Manner of Sale 8.18.12: Rule 144: Brief Overview 8.18.12.a: Note On Rule 144 8.18.12.b: Public Information 8.18.12.c: Holding Period 8.18.12.d: Cashless Exercise to Avoid the Holding Period on Warrant Exercise 8.18.12.e: Dribbling Out 8.18.12.f: Volume 8.18.13: Rule 144A 8.18.14: Model Year-End Task List For Public Companies 9.1: Commercial Aspects, Why To Choose Joint Ventures 9.1.1: Disguised Sale 9.1.2: Euphemism for a Licensing Agreement, an OEM Contract et al. 9.1.3: Cross-Border Marketing and Distribution Arrangement 9.1.3.a: Model OEM Purchase Agreement 9.1.4: Joint Ventures in Emerging Markets 9.2: Structuring Issues 9.3: Negotiation Points 9.4: The Duty of Candor 9.5: Corporate Opportunity and Self-Dealing 9.6: Anti-Trust Issues 9.7: Allocation of Risk: Liquidation 9.8: Accounting Issues 9.9: Tax Efficiency 9.10: Alliances with Not-for-Profit Entities 9.10.1: Patent Licensing 9.10.2: Bayh-Dole Act 9.10.3: Exit Vehicles 9.10.4: Authority of Non-Profits To Engage in Commercial Activities 9.10.5: Unrelated Business Activities: Unrelated Business Taxable Income 9.10.6: Threat To Overall Tax-Exempt Status 9.10.7: Academic Integrity and Related Issues 9.10.8: NDA Between For-Profit and Not-For-Profit Entities (Model Form) 9.11: Intellectual Property: License Agreements 9.11.1: Intellectual Property License Agreements: Development and License Agreement 9.11.2: License Distinguished from Other Forms 9.11.3: License Versus Sale 9.11.4: License versus Lease 9.11.5: Computer Software 9.11.6: Customer Support 9.11.7: Escrowing the Source Code 9.11.8: 'Shrink-Wrap', 'Tear-Open' or 'Click-Wrap' Licenses 9.11.9: Scope of Use 9.11.10: Content Licensing 9.11.11: Trade Secret Protection 9.11.12: Threshold Confidentiality 9.11.13: Licensing as an Alternative Method of Distribution 9.11.14: Nature of Licensed Property 9.11.15: Field of Use 9.11.16: Most Favored Nation Clauses 9.11.17: Limitations on Licensee Exploitation 9.11.18: Exclusivity 9.11.19: Duty of Licensee to Exploit 9.11.20: Enhancements and Improvements 9.11.21: Calcualtion of Royalties 9.11.22: Stacking Clauses 9.11.23: Obligation To Bring Actions Against Infringers 9.11.24: Warranties 9.11.25: Admissions of Validity Related to Licensed Patents 9.11.26: Antitrust Considerations 9.12: Selling to the Government and Federal Procurement: A VC Case Study 9.13: Intellectual Property Due Diligence in Venture Transactions 9.13.1: Top-10 Most Common Intellectual Property Rights Mistakes During Venture Capital Due Diligence 9.13.2: IP Strategies in Today's Wireless Technology Revolution 9.14: A Patent Portfolio Development Strategy for Start-Up Companies 9.14.1: Developing a Patent Strategy - A Checklist for Getting Started 9.14.2: Software Outsourcing Offshore - Business and Legal Issues Checklist 9.15: Corporate Venture Capital: Structuring 9.15.1: History and Overview of Corporate Venturing 9.15.2: Corporate VC: Structural Problems 9.15.3: Corporate VC: ATT, Xerox, Polaroid and Kodak (the Four Horsemen) 9.15.4: Corporate Venture Capital for the CFO: Managing for Strategic and Financial Returns 9.15.5: Corporate VC Checklist: Key Questions Regarding Strategic Intent 9.15.6: Corporate VC Checklist: Key Questions Regarding Organizational Structure 10.1: Model Limited Partnership Agreement: Introduction 10.1.1: Model Limited Partnership Agreement: Definitions 10.1.1.a: Note on the 'Pure' Carry 10.1.1.b: Note on the 'Carried Interest' 10.1.2: Model Limited Partnership Agreement: Formation 10.1.3: Model Limited Partnership Agreement: Capitalization 10.1.3.a: Note on General Partner's Capital Contribution 10.1.3.a.i: The General Partner's Commitment: A Potential Increase From 1% to 5%. 10.1.3.b: Note on Capital Accounts 10.1.3.c: Note on Book Ups 10.1.4: Model Limited Partnership Agreement: Allocations Of Partnership Profit And Loss 10.1.4.a: Note on Hurdle Provision and Example Hurdle Language 10.1.4.b: Note on Certain Issues Relating to Allocations Tied to Capital Commitments, Capital Contributions 10.1.5: Model Limited Partnership Agreement: Distributions 10.1.5.a: Note on Reinvestment of Proceeds 10.1.6: Model Limited Partnership Agreement: Administrative Provisions 10.1.6.a: Note on Conflicts of Interest 10.1.6.a.i: Private Equity Funds and Fiduciary Duties 10.1.6.b: Note on Expenses Paid by the Partnership 10.1.6.c: Note on Valuation of Illiquid Securities 10.1.6.c.i: Pre-1996 Valuation Guidelines 10.1.6.c.ii: U.S. Private Equity Valuation Guidelines (PEIGG) 10.1.6.c.iii: European Venture Capital Association Guidelines (Governance, Valuation, Reporting, etc.) 10.1.6.c.iv: Modeling Venture Capital Funds: Quantitative Methods to Evaluate the Performance of Venture Capital 10.1.6.d: Note on The Plan Asset Regulation and VCOCs 10.1.6.e: Note on Off-Shore Entities 10.1.6.f: Note on QPAMs 10.1.7: Model Limited Partnership Agreement: Transfers and Withdrawals 10.1.7.a: Note on Transfers and Withdrawals 10.1.8: Model Limited Partnership Agreement: Dissolution and Liquidation 10.1.8.a.i: Note on Contractual Clawback 10.1.8.b: Clawbacks Ahead 10.1.8.b.i: Note on Statutory Clawback 10.1.9: Model Limited Partnership Agreement: Liability and Indemnification 10.1.10: Model Limited Partnership Agreement: Miscellaneous Tax And Regulatory Compliance Provisions 10.1.10.a: The Application of the USA Patriot Act to Private Equity Funds 10.1.11: Model Limited Partnership Agreement: General Provisions 10.2: General Partner: LLC Agreement 10.2.1: Model LLC Agreement: Exhibit A - Optionee Note 10.2.2: Model LLC Agreement: Exhibit B - Optionee Security Agreement 10.2.3: Model LLC Agreement: Exhibit C - Promissory Note 10.3: Co-Investment Rights for LP's: Sample Side Letter 10.4: Subscription Agreement for Private Equity Fund (Model) 10.4.1: Note on Exemptions from the Investment Company Act of 1940 10.4.2: Note on Side Funds 10.5.1: Private Equity Fund (Biotech): Model Offering Memorandum 10.5.2: Private Equity Fund (Internet/New Media) Model Offering Memorandum 10.6: Quantitative Analyses and Data Banks 10.6.1: 'Market' or 'Industry Standard' Deal - Terms and Frequency of Appearance 10.6.2: Terms For the New Environment 10.6.3: Impact of Hurdle Rate and Management Fee on IRR of the Partners 10.6.3.a: Tables Demonstrating The Effects of the Hurdle Rate and Recapture Provision Scenarios 10.6.3.b: Graphs Illustrating The Rates of Returns to Investors 10.6.4: Calpers: Selected Fund Returns, 1992-2000 10.6.4.a: Calpers: Fund by Fund IRR Data 10.6.5: Beyond IRR 10.6.6: The Returns to Private Equity 10.6.6.a: The Returns to Private Equity: An Update 10.7: Fund Counsel's Opinion: Limited Liability 10.7.1: Tax Opinion to Offshore Partners Regarding 'Trade or Business' 10.8: Limited Liability Company Agreement (the Management Company) 10.9: Agreement Between The Fund and the Management Company 10.10: Special Entities: SBIC's and BDC's 10.10.1: SBIC Capital for Small Businesses 10.10.2: The SBIC Program (Detailed Overview) 10.10.2.a: Sample Distribution for an SBIC Leveraged with Participating Securities 10.10.3: Business Development Companies (BDCs) 10.10.4: Note On Corporate Venture Funds 10.11: Model Placement Agent Agreement 10.11.1: Note on Containing Initial Legal Expenses 10.12: Secondary Market in LP Interests 10.12.1: Secondary Market: Contact Information for the Top 15 Secondary Market Funds 10.12.2: Secondary Market Direct Sales: The Perfect Storm (Benefits and Risks) 10.12.3: Commentary: The Secondary Market In Limited Partnership Interests 10.12.4: I.R.C. Section 754 Legislation (Secondary Funds Take Special Notice) 10.12.5: Structured Partnerships: Extracting Maximum Value from Secondaries While Avoiding Steep Discounts 10.12.6: Structure for LP Control: An Alternative to Divorce 10.12.7: Coping With Clawbacks and Defaulting LP's (PricewaterhouseCoopers LLP) 10.13: Pledge or Synthetic Funds: A Structural Overview 10.14: Litigation Involving Private Equity Fund Managers 10.14.1: Liability of Fund Managers for Portfolio Company Infractions 10.14.1.a: Private Equity Fund as 'The Employer' of Portfolio Company Employees 10.15: Private Equity Firm: Succession Issues 11.1: Introduction to Down Rounds 11.2: Common Down-Round Characteristics 11.2.1: The Essential Guide to Liquidation Preferences 11.3: Legal Structures For Implementing Down-Rounds 11.4: Liability Issues Associated with Down Rounds 11.5: Down Rounds: Exhibit A 11.6: Down Rounds: Exhibit B 11.7: Bridge Financing Term Sheet: Convertible Note with Warrants 12.1: Key Issues for a Venture Capitalist to Consider When Selling a Portfolio Company 12.1.2: Acquisitions of US Companies: Advantages/Disadvantages of Receiving Unregistered Shares--Hale & Dorr 12.2: Buy-Sell Agreements & The Web Of Federal Estate & Gift Tax Exposure 12.3: The Value of the Freezeout Option 12.5: Agreement and Plan of Merger (Selected Provisions for Transaction Document) 12.5.1: Asset Purchase Agreement (Transactional Document) 12.5.2: Purchase Letter of Intent (From Buyer to Target Subsidiary) [Transactional Form] 12.5.3: Fairness Opinion: Interested Party Confidentiality Agreement 13.1: UN Foundation - Role & Magnitude 13.2: International Venture Capital: The Role of Start-Up Financing in the United States, Europe, and Asia 13.2.1.a: Building Venture Capital Industries: Understanding the U.S. and Israeli Experience 13.2.2: Collateral Damage: The Venture Capital Outlook and Potential "No Growth" Economic Future 13.3: You Say Potato, I Say Pomme de Terre (A Primer on Global Venturing) 13.3.1: Toward A Global Model Of Venture Capital? 13.4: The U.S. Model: Structuring Venture Capital and PE Investments 13.5: Venture Capital Industries in East Asia 13.5.1: How Does Venture Capital Work? 13.5.2: The Origins of Venture Capital as an Institution 13.5.3: The History of Venture Capital in Asia 13.5.3.a: Japan / Korea 13.5.3.b: The Chinese Island States 13.5.3.c: Taiwan 13.5.3.d: Hong Kong 13.5.3.e: Singapore 13.5.3.f: China 13.5.3.g: Developing Asia 13.5.3.h: The Globalization of the Asian Venture Capital Industry 13.5.4: Institutional Issues in Asian Venture Capital 13.5.5: After the Crash 13.5.6: Future Prospects for Venture Capital in East Asia 13.5.7: References 13.5.8: Tables 13.5.8.a: Table 1: National Venture Capital Pools in Asia 13.5.8.b: Table 2: Distribution of Investments by Industries 13.5.8.c: Table 3: Sources of Venture Capital Commitments 13.5.8.d: Table 4: Investment Preferences of Taiwanese and Japanese Venture Capital Firms 13.5.8.e: Table 5: Import and Export of Venture Capital for Various Asian Nations 13.5.8.f: Table 6: New NASDAQ-like Stock Markets in Asia 13.6: Global Venture Capital Associations 13.6.1: Global Venture Capital Associations (sorted by region) 13.7: Spanish Private Equity: Survey of Private Equity in Spain 13.8: Canadian Private Equity: Advantages and Disadvantages of Incorporating in Canada 13.9: Indian Private Equity: 'Venturing' into India-A Legal and Structural Overview 13.9.1: Indian Private Equity: Shareholders' Agreement--Enforceability Issues 13.10: Taiwan: History of its Venture Capital Market 13.10.1: Taiwan: Venture Capital Overview 13.12: German Private Equity: Restructuring "Germany Inc.": Company & Takeover Law Reform in Germany & EU 13.12.1: German Private Equity: Trouble in the Tranches, An Update on the German VC Market 13.12.2: German Private Equity: Taxation of Private Equity Funds in Germany (SJ Berwin) 13.12.2.a: German Private Equity: Thin Capitalisation Rules and Taxation of PE Funds (SJ Berwin) 13.12.3: German Private Equity: 2004 Investment Modernisation Act Proposed 13.12.4: German Private Equity: European Investment Fund Allocations to Early Stage VC's (SJ Berwin) 13.13: United Kingdom: Recent Developments in UK Law Regarding Private Equity 13.13.1: UK: The impact of recent UK tax changes on carried interest and manager shares (Overview) 13.13.1.a: UK: Finance Act 2003 Schedule 22, Impact On Earn-Outs & Ratchet Deals (SJ Berwin) 13.13.1.a.i: UK: Taxation of UK Companies--Founders Sing the Blues (Hale & Dorr London) 13.13.1.a.ii: UK Tax Law: Venture Backed Companies Seek Relief (SJ Berwin) 13.13.1.a.iii: British Venture Capital Assn.: 2004 Budget Submission 13.13.1.a.iv: BVCA Proposal: Attachment addressing Private Equity/Venture Capital Reforms 13.13.1.b: UK: Limited Liability Partnerships--Uses in Venture Capital Transactions (SJ Berwin) 13.13.2: UK: Inland Revenue and the BVCA--Commentary on the July 2003 MOU (SJ Berwin) 13.13.3: UK: Two Safe Harbours--A Passage to Get CGT Treatment for Management Equity Interests (SJ Berwin) 13.13.3.a: UK: Management Equity in Venture Backed Companies 13.13.4: UK: Limited Partnership Terms Survey 2002 13.13.5: UK: Raising Money From Individuals in the UK (SJ Berwin) 13.13.6: UK: Guide to R&D Tax Credits in the U.K. (Hale & Dorr) 13.13.6.a: UK Tax Reform (SJ Berwin) 13.13.6.a.i: UK Private Equity: Tax Reform Effects on Private Equity (SJ Berwin) 13.13.7: UK Private Equity: Proposed Changes to Pension Rules Could Damage PE and M&A (SJ Berwin) 13.13.9: UK: ENTERPRISE CAPITAL FUNDS-THE UK'S SBIC 13.13.9.a: UK Private Equity: Enterprise Capital Funds 2004 Update (SJ Berwin) 13.14: Survey: Private Equity in Israel 13.14.1: Israel: Analysis of (and Comparison to U.S.) Legal Terms of Venture Financings (3Q-4Q 2003) 13.15: EU Private Equity: Financing Private Equity Deals (SJ Berwin) 13.15.2: EU Private Equity: The Delaware Flip-Basics of Re-incorporating in the U.S. (Hale & Dorr London) 13.15.2.a: EU Private Equity: Should You Do the Delaware Flip? (SJ Berwin) 13.15.3: EU: Impact on Private Equity of Consolidated Accounting (International Accounting Standards) 13.15.3.a: EU Private Equity: Consolidated Accounting Update (International Accounting Standards) 13.15.4: EU Private Equity: European Public to Privates--A Fair Deal for Shareholders? 13.15.5: EU Private Equity: European Public to Privates--Raising the Bar (SJ Berwin) 13.15.6: EU Private Equity: European Tax Environment 2004 (SJ Berwin) 13.15.7: EU Private Equity: A Single European Fund Structure? (SJ Berwin) 13.15.8: EU Private Equity: European Buyout and Merger Control (SJ Berwin) 13.15.9: EU Private Equity: The Basel Committee and Capital Requirements (SJ Berwin) 13.15.10: EU Private Equity: Accounting for Share Options under IAS (SJ Berwin) 13.15.11: EU Private Equity: Thin Capitalisation Rules--A Threat to European Buyouts? (SJ Berwin) 13.15.12: EU Private Equity: Regulation of Accountants in Europe (SJ Berwin) 13.15.13: EU Private Equity: New Merger Control Rules (SJ Berwin) 13.16: French Private Equity: PE Fund Regulation (SJ Berwin) 13.16.1: French Private Equity: NEW INVESTMENT ADVISER REGULATION IN FRANCE 13.16.2: French Private Equity: Stimulating Investment in French Start-Up's 13.16.3: French Private Equity: Tax Treaties--Avoiding Double Taxation (SJ Berwin) 14.1: Background 14.1.1: Marketing the Fund: How to write an Effective Investor Presentation 14.1.2: Marketing the Fund: Polishing the Pitch for LPs 14.2: Partnership versus Corporation 14.3: Certain Terminology 14.4: Installment Payments 14.5: Capital Account 14.6: Interest in Profits and Losses 14.7: Common Drafting Miscues 14.8: Fees and Expenses 14.9: Substantial Economic Effect 14.10: Carried Interest 14.11: Temporary Investments and Rate of Return 'Bogies' 14.12: Distributions 14.13: Vesting the Manager's Interest 14.14: Partnership Private Placement Memorandum 14.15: Control Issues 14.16: Meetings and Committees 14.17: Conflicts of Interest 14.18: Liquidity 14.19: Restrictions on the GPGP's Powers 14.20: Standard of Care: Indemnification 14.21: Creatures of Statute: SBICs and BDCs 14.22: Special Investors 14.23: Avoiding Registration under the '40 Acts 14.24: What Happens When the Fund Must Wind Up? 15.1: Industry Standard Deal Terms for Private Equity and Venture Capital: 29 Answers and Best Practices 15.1.2: Private Equity Terms Survey: Calpers Study by Mercer Consulting 15.1.3: East Coast Term Sheet Survey (2002-2003) 15.1.3.a: Fish & Richardson Mid-Atlantic Venture Capital Survey (Q3 2003) 15.1.3.b: Multimarket Venture Capital Survey Data: Q4 2003 (Fish & Richardson PC) 15.1.4: Best Practices in Reporting and Performance Measurement (PEIGG Survey 2004) 15.2: Fenwick & West Surveys 15.2.1: Explanation of Certain Terms Used In Venture Financing Terms Survey (Fenwick & West) 15.2.2: Fenwick & West: Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Q4 2002) 15.2.3: Fenwick & West: Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Q1 2003) 15.2.4: Fenwick & West: Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Q2 2003) 15.2.5: Fenwick & West: Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Q3 2003) 15.2.6: Fenwick & West: Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Q4 2003) 15.2.7: Fenwick & West: Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Q1 2004) 15.2.8: Fenwick & West: Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Q2 2004) 15.3: Pricing Deal Terms In Early-Stage Financings (2001) 15.3.1: Survey Methodology 15.3.2: Survey Design 15.3.3: Survey Results 15.3.3.a: Question 1: Stage Preference 15.3.3.b: Question 2: Investment Amount 15.3.3.c: Question 3: Form of Transaction 15.3.3.d: Question 4: Priority of Consideration 15.3.3.e: Question 5: Frequency of Given Considerations 15.3.3.f: Question 6: Value of Consideration 15.3.3.g: Question 7: Frequency Of Anti-dilution Rights 15.3.3.h: Question 8: Employee Stock Option Pool 15.3.3.i: Question 9: Officer Stock Options 15.3.4: Summary 15.3.5: Author's Commentary 15.3.6: Exhibits 15.3.6.a: Exhibit 1 15.3.6.b: Exhibit 2 15.3.6.c: Exhibit 3 15.3.6.d: Exhibit 4 15.3.6.e: Exhibit 5 15.3.7: Late Stage Venture Backed Technology Companies Survey (2002) 15.3.8: Global Entrepreneurship Statistics 2004 15.3.9: What is the Market on Terms? A New Look at an Age-Old Question (Testa Hurwitz & Thibeault) 15.4: Best Practices for Sarbanes Oxley 15.4.1: Sarbanes-Oxley: Some Practical Hints on Ways to Comply Effectively 15.4.2: Sarbanes-Oxley For Start-Up's: Does it Matter? 15.4.3: Sarbanes-Oxley and Private Equity: Implications and Unintended Consequences (Kirkland & Ellis) 15.4.4: Sarbanes-Oxley: Too Much Disclosure? 15.4.4.a: Sarbanes-Oxley: SEC Adopts Amendments to Form 8-K 15.4.5: Impact of Corporate Governance Reforms on Private Companies (Hale and Dorr) 15.4.5.a: Best Practice Corporate Governance: Who Runs the Company? 15.5: Are the terms of US and European private equity funds converging? 15.5.1: UK: Limited Partnership Terms Survey 2002 15.8: Board Protection: Individual Liability Insurance for Independent Directors 15.10.1: CONTRACTS AND EXITS IN VENTURE CAPITAL FINANCE 15.10.1.a: Country Legal Structure's Effect on Venture Finance (SJ Berwin) 15.10.1.b: The Legal Road to Replicating Silicon Valley 15.10.2: Long-term Performance of New Equity Issuers, Venture Capital and Reputation of Investment Bankers 15.11: Directory of Global Venture Capital Firms 18.1: Buyout Nomenclature 18.1.2: Special Features of Buyouts 18.1.3: Restructurings 18.2: Leveraged Buyouts: Tax Issues 18.2.1: Tax Issues: Distributions by Corporations 18.2.2: Tax Issues: Corporate Liquidations 18.2.3: Tax Issues: Corporate Organizations and Reorganizations 18.2.4: Tax Issues: Carryovers and NOL's 18.3: Leveraged Buyouts: Note on Valuation 18.4: Tax Shields in an LBO 18.5: How to Take Public Companies Private (And Why) 18.6: Private Equity Securitization: U.S. Tax Specific Points for Issuers and SPV's 18.6.1: Private Equity Securitization: Uses and advantages of Delaware statutory trusts 18.7: LBO's: Fundamentals of Structuring 18.7.1: LBO's: Taxable versus Tax-Postponed