An NDA is a legal contract between at least two parties which outlines confidential information that the parties wish to share with one another but would like to restrict access to third parties. In this contract, parties agree not to disclose information covered by the agreement. An NDA creates and establishes a relationship among the involved parties for the sake of protecting any type of confidential information between them from parties outside of the agreement.
If your company needs an outside investor, you may run into someone who plans to raise money for you. These individuals could be accountants, attorneys, investment bankers, mediators, or others. However, whatever fees these individuals cost usually must be contingent upon a successful investment in your company. If this is the case, these individuals, called unlicensed brokers, could be causing your company to break a host of state and federal laws.
Transactional Lawyer Joel Nied discusses CTO shares and how to shaft your CTO through word problems. This example is based on issuing Equity to an employee.
Private Placement Memorandum
Private Placement Memorandums are legal documents given to prospective investors when selling stock or another security in a business. A PPM is used in “private” transactions when the securities are not registered under applicable federal or state law, but rather sold using one of the exemptions from registration. The PPM describes the company selling the securities, the terms of the offering, and the risks of the investment, including other things.