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| | 0.9.1: The Contract: Purchase Agreement, Shareholders Agreement, And Rights Of First Refusal - Encyclopedia - Library - ... |
 | | In a structured venture financing, the contract between issuer and investor is, or should be, detailed, covering a number of issues which otherwise may be the subject of future disputes and misunderstandings. |
 | | For example, a contract, like a story, should start with an introductory paragraph or two, which will set the stage and explain what the draftsman is trying to accomplish. |
 | | Securities law issues include the question whether the receipt of contingent stock involves a new investment decision and, therefore, the need for separate registration (or an exemption) and the appropriate holding period under Rule 144 for nonaffiliates vis-à-vis the contingent stock. |
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