Difference between revisions of "Memorandum of terms"
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(Replaced content with "Memorandum of terms Category:mbi Category:M10 Category:Term") Tag: Replaced |
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| − | + | A memorandum of terms (also called 'term sheet') is the first 'pseudo-legal' letter of intend like document preparing for an [[Investment contract|Investment contract]] | |
| + | We discussed the term sheet in [[this| | ||
| + | |||
| + | <html><a href="/static/files/MBI/Module%2010/edocs,%20Inc.%20(A)_HBS%209-200-015.pdf">case</a></html> | ||
| + | |||
| + | case. Some parts are of interest: | ||
| + | |||
| + | * Redemption | ||
| + | * Liquidation: | ||
| + | <html> | ||
| + | <img src="/static/files/MBI/Module%2010/liquidation.PNG" width=500> | ||
| + | </html> | ||
| + | What will happen on liquidation: | ||
| + | {| class="wikitable" | ||
| + | |\$5,0-M | ||
| + | |Founders | ||
| + | |- | ||
| + | |\$4,0-M | ||
| + | |VC | ||
| + | |- | ||
| + | |\$1,5-M | ||
| + | |[[ESOP|ESOP]] | ||
| + | |- | ||
| + | |}* Anti [[Dilution|Dilution]] clause to describe conditions under which new shares can be emitted. | ||
| + | |||
| + | Discussed as part of: [[M10-S3 - Case - E-docs inc|M10-S3 - Case - E-docs inc]] | ||
[[Category:mbi]] | [[Category:mbi]] | ||
Latest revision as of 20:00, 27 August 2020
A memorandum of terms (also called 'term sheet') is the first 'pseudo-legal' letter of intend like document preparing for an Investment contract We discussed the term sheet in [[this|
case. Some parts are of interest:
- Redemption
- Liquidation:
What will happen on liquidation:
| \$5,0-M | Founders |
| \$4,0-M | VC |
| \$1,5-M | ESOP |
* Anti Dilution clause to describe conditions under which new shares can be emitted.
Discussed as part of: M10-S3 - Case - E-docs inc
