Facilitator Guide

Preferred Stock Purchase Agreements

Facilitator Guide

Preferred Stock Purchase Agreements

Topic: Venture Financing
Duration: 1 hr
Format: Remote or in person

What’s covered

The preferred stock purchase agreement
Purchase and sale of preferred stock
Representations and warranties
Closing conditions
Schedule of exceptions

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/preferred-stock-purchase-agreements/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Preferred Stock Purchase Agreements

A walkthrough of a typical Preferred Stock Purchase Agreement, including the related Schedule of Exceptions.
Exercise
PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

What is the purpose of the preferred stock purchase agreement?
Who are the parties to the preferred stock purchase agreement?
Why are representations and warranties included in the preferred stock purchase agreement?
Describe some typical Series A company representations and warranties?
What are some common closing conditions for both the investors and the company?
Why is a schedule of exceptions included? Does it protect the company or investors?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Venture Financing topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.