Difference between revisions of "Memorandum of terms"

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(Replaced content with "Memorandum of terms Category:mbi Category:M10 Category:Term")
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Memorandum of terms
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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]]
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We discussed the term sheet in [[this|
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<html><a href="/static/files/MBI/Module%2010/edocs,%20Inc.%20(A)_HBS%209-200-015.pdf">case</a></html>
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case. Some parts are of interest:
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* Redemption
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* Liquidation:
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<html>
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<img src="/static/files/MBI/Module%2010/liquidation.PNG" width=500>
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</html>
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What will happen on liquidation:
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{| class="wikitable"
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|\$5,0-M
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|Founders
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|-
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|\$4,0-M
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|VC
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|-
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|\$1,5-M
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|[[ESOP|ESOP]]
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|-
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|}* Anti [[Dilution|Dilution]] clause to describe conditions under which new shares can be emitted.
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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

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