Monthly Archives: April 2009

innovateHealth – “Capital Meets Innovation” Summit – Tuesday, May 12, 2009

Davis Wright Tremaine, iMedExchange, Clarity Health and Faultline Ventures invite you to attend the innovateHealth’s inaugural “Capital Meets Innovation” Summit on May 12, 2009. This program will highlight successful strategies being used by health care entrepreneurs from the Pacific Northwest … Continue reading

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What is a Repurchase Option?

Founders often ask how they can keep a co-founder who leaves the company shortly after formation from taking his founders’ stock with him. The remaining founders typically feel that the departing founder should not be able to share in the … Continue reading

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Imposition of Vesting On Stock in a Financing

It is fairly common in connection with a financing that an investor will require a founder to agree to place a certain number of the founder’s fully vested and owned founders shares under an at-cost repurchase restriction, which at-cost repurchase … Continue reading

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Can An S Corporation Have Voting and Non-Voting Stock?

S corporations may only have one class of stock.  However, “[d]ifferences in voting rights among shares of stock of a corporation are disregarded in determining whether a corporation has more than one class of stock.”   Thus, an S corporation … Continue reading

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Why Do Companies Issue Preferred Stock?

Preferred Stock is stock which is “preferred” over common stock in any number of different ways.  For example: Preferred stock may have a liquidation preference, which is a right to be paid first a certain fixed or formulaic amount of money … Continue reading

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