All American Financial

What Is The Value Of These Forms?

• Annually, our Network closes many financing rounds, each consuming considerable time and effort on the part of investors, management teams and attorneys.

A conservative estimate is that the venture capital industry spends some $200 million in direct legal fees annually to close private financing rounds.

In an all-too-typical situation, the attorneys start with documents from a recent financing, iterate back and forth to get the documents to conform to their joint perspective on appropriate language (reflecting the specifics of the deal and general industry best practices), and all parties review numerous black-lined revisions, hoping to avoid missing important issues as the documents slowly progress to their final form.

• In other words, our industry on a daily basis goes through an expensive and inefficient process of “re-inventing the flat tire.”

By providing an industry-embraced set of model documents which can be used as a starting point in venture capital financings, it is our hope that the time and cost of financings will be greatly reduced and that all principals will be freed from the time consuming process of reviewing hundreds of pages of unfamiliar documents and instead will be able to focus on the high level issues and trade-offs of the deal at hand.

Who Drafted These Documents?

• The initial set of model documents were drafted over the course of several years by a consensus process involving many of the leading lawyers in the country, which constitutes the Contracting Packages.

These documents have now been through a several sets of intense review, comment and revision by the current group.

How Will the Documents Be Kept “refreshed” And Up-to-date?

• The Network (whose membership will not remain static) will continue to confer approximately once a year to determine whether any changes need to be made to the documents, including in light of any recent legal developments or actual experience using the documents in deals.

In addition, users of these documents are encouraged to send any comments and suggestions to Jerry D. Hill, which comments and suggestions will be taken into consideration, as the documents are further revised and refined over time.

Who Will “own” These Documents?

• The All American Network owns the documents. They will be available for use by any Investment Club in our Network. However, the “original” forms are posted here on the accessible portion of our web site so that users downloading them from this site can be assured that they are always using the most current and up-to-date version.

Our Complete Package Of Legal Forms.