PRIVATE FINANCING PROCESS - EXECUTION
Stage source    Description & Components   4       Term Sheet owners 1.    Description of Shares owners 2.    Investment Unit owners 3.    Number of Units owners 4.    Price per Unit owners 5.    Voting of Shares owners 6.    Board Representation owners 7.    Shareholder Value owners 8.    Dilution Restraints owners counsel 9.    Liquidity Assurances owners counsel 10.    Future Participation Rights owners counsel 11.    IPO Registration Rights owners counsel 12.    Penalties fin team 13.    Use of These Proceeds	Stage source    Description & Components   5       Due Diligence CFO 1.    Balance Sheets (Audited 2 years, minimum) CFO 2.    Operating Statements. (Audited 2 years, minimum) board 3.    Governance (By-laws, Minute Book, Standing, …) board counsel 4.    Existing & Contemplated Legal Agreements (Debt Agreements, Titles/Leases, Prior Financings, Employee, Vendors, Customers, Patents, …) CEO 5.    References (Customers, Personal Character) 6    Closing board counsel 1.    Subscription Agreement (Closing Date, Escrow Account, Max./Min.) counsel 2.    "Blue Sky" Registration & Approval board counsel 3.    Closing Package Contents & Executed Subscription Agreements CFO 4.    Clearance & Acknowledgement of Proceeds board 5.    Acceptance of Proceeds counsel 6.    Issuance of Ownership Certificates owners 7.    Board Election (if appropriate)
"source"  Abbreviations  source:  The current source of the information or decision power. owners:  The shareholders of the organization raising capital whose approval of impacts on their equity is usually required by the By-Laws. board:  The board of directors of the organization raising capital. fin team:  The professional team that often meets and submits deliverables and usually consist of insiders, including founders, and outsides. It is customary for the the CFO and/or the CEO to lead this group. CEO:  The Chief Executive Officer who has the long term responsibility; invariably the Chairman or President CFO:  The Chief Financial Officer; often serves as the Treasurer, also. counsel:  The organization's inside and/or outside legal counsel.

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