SERIES A PREFERRED STOCK PURCHASE AGREEMENT
Last updated June 2013
Preliminary Note
The Stock Purchase Agreement sets forth the basic terms of the purchase and sale of the preferred stock to the investors (such as the purchase price, closing date, conditions to closing) and identifies the other financing documents. Generally this agreement does not set forth either (1) the characteristics of the stock being sold (which are defined in the Certificate of Incorporation) or (2) the relationship among the parties after the closing, such as registration rights, rights of first refusal and co-sale, voting arrangements (these matters often implicate other persons than just the Company and the investors in this round of financing, and are usually embodied in separate agreements to which those others persons are parties, or in some cases by the Certificate of Incorporation). The main items of negotiation in the Stock Purchase Agreement are therefore the price and number of shares being sold, and the representations and warranties that the Company, and sometimes the Founders as well, must make to the investors.
Last updated June 2013
TABLE OF CONTENTS
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Page 1.
Purchase and Sale of Preferred Stock ..................................................................................1 1.1 Sale and Issuance of Series A Preferred Stock ........................................................1 1.2 Closing; Delivery .....................................................................................................1 1.3 Sale of Additional Shares of Preferred Stock ..........................................................2 1.4 [Use of Proceeds] .....................................................................................................3 1.5 Defined Terms Used in this Agreement...................................................................3 Representations and Warranties of the Company ................................................................5 2.1 Organization, Good Standing, Corporate Power and Qualification ........................6 2.2 Capitalization ...........................................................................................................6 2.3 Subsidiaries ..............................................................................................................8 2.4 Authorization ...........................................................................................................8 2.5 Valid Issuance of Shares ..........................................................................................9 2.6 Governmental Consents and Filings ........................................................................9 2.7 Litigation ..................................................................................................................9 2.8 Intellectual Property ...............................................................................................10 2.9 Compliance with Other Instruments ......................................................................11 2.10 Agreements; Actions ..............................................................................................12 2.11 Certain Transactions ..............................................................................................13 2.12 Rights of Registration and Voting Rights ..............................................................13 2.13 Property ..................................................................................................................14 2.14 Financial Statements ..............................................................................................14 2.15 Changes ..................................................................................................................14 2.16 Employee Matters ..................................................................................................16 2.17 Tax Returns and Payments.....................................................................................18 2.18 Insurance ................................................................................................................18 2.19 Employee Agreements ...........................................................................................18 2.20 Permits ...................................................................................................................18 2.21 Corporate Documents ............................................................................................18 2.22 [83(b) Elections] ....................................................................................................19 2.23 [Real Property Holding Corporation] ....................................................................19 2.24 Environmental and Safety Laws ............................................................................19 2.25 [Qualified Small Business Stock] ..........................................................................20 2.26 Disclosure ..............................................................................................................20 2.27 [Small Business Concern] ......................................................................................21 2.28 [Foreign Corrupt Practices Act] .............................................................................21
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Last updated June 2013