1. Investor Briefing Series: Buying and Selling Equity

2. Buying and Selling Equity
Sterling A. Hawkins
∞ U.S. Army
∞ Clark Atlanta University & Emory Law
∞ Corporate Law/Securities/Employment
3/15/06 Ways Investors Get Returns on their Investment.
Network of Business Angels & Investors

3. Buying and Selling Equity
Securities Laws
Purpose: Protect You
Disclosures
Misrepresentations
Irony:
Rich get Richer – Increase your knowledge
Protection
Documenting Desires
3/15/06 Ways Investors Get Returns on their Investment.
Network of Business Angels & Investors

4. Buying and Selling Equity
Term Sheet
Deal-Specific Understanding
Parties, Rights, Privileges
Private Placement Memorandum (PPM)
More Detailed
Includes Business Plan Items
Compliance with Securities Laws
3/15/06 Ways Investors Get Returns on their Investment.
Network of Business Angels & Investors

5. Buying and Selling Equity
Subscription Agreement
Buying Stock/Equity
“Wall Street Rule”
Stockholder’s Agreement
Divorce
Repurchase of Shares
Death
Warrants/Options
Right to Get More
3/15/06 Ways Investors Get Returns on their Investment.
Network of Business Angels & Investors

6. Buying and Selling Equity
Important Points
∞ Past ≠ Future (Better Investments)
∞ Expect Success (Your Reality)
∞ TEAM!!! (Not Cheating)
3/15/06 Ways Investors Get Returns on their Investment.
Network of Business Angels & Investors