Lifecycle of a Technology Company : Step-by-Step Legal Background and Practical Guide from Startup to Sale

Preface ix

Acknowledgments xi

About the Web Site xiii

CHAPTER 1 Start-Up Phase 1

Founders’ Contractual Arrangements and Mechanics of the Incorporation Process 1

Choice of Entity 31

Stock Option Plans and Other Equity Compensation Arrangements 37

Employment Agreements 49

Appendices 55

CHAPTER 2 Financing the Venture 57

Venture Capital Financings 57

Basics of Debt Financing 90

Brief Introduction to the Structure and Operation of Venture Capital and Buyout Funds 98

Appendices 103

CHAPTER 3 Intellectual Property Protection 105

Basics of Intellectual Property Protection 105

License Agreements 121

Technology Licensing: Advanced Topics 140

Appendices 179

CHAPTER 4 Private Placements, Initial Public Offerings, and Public Company Regulation 181

Basics of Securities Regulation for Private

Companies 181

Initial Public Offerings 195

Public Company Regulation 206

Appendices 247

CHAPTER 5 Acquisitions 249

Mergers and Acquisitions: Structuring

Considerations 249

Overview of an Acquisition Agreement 260

Advanced Topics 270

Appendices 292

Index 293