The following documents are actual documents used in a financing, except that they have been broadened in concept to include many of the standard “boiler plate” items used by most VCs. After reading these documents, you will be well prepared for the ones you receive from the entrepreneur. All documents are for fictitious companies and people. The following documents are covered in this appendix:
Commitment letter for a loan with options for stock on Ace Electromagnetic, Inc.
Legal Document 1: Loan Agreement on Ace Electromagnetic, Inc.
Legal Document 2: Promissory Note on Ace Electromagnetic, Inc.
Legal Document 3: Stock Purchase Warrants on Ace Electromagnetic, ...