Business Transactions - Page 3 of 17 - Sutter Law

Convertible Debt: How It Works and How Startups Can Use It

by Staff Attorney | Dec 3, 2025 | Business Transactions

Why Convertible Debt Exists in the First PlaceHow Convertible Debt WorksWhy Investors Agree to Convertible Debt1. A Discount on Future Shares2. A Valuation Cap3. Priority Over Equity Holders4. Interest AccrualA Detailed Example: How Convertible Debt Converts Into...

Why Indemnification Agreements are the Gold Standard for Company Founders

by Staff Attorney | Nov 12, 2025 | Business Transactions, California Partnerships, Intellectual Property

What Is an Indemnification Agreement?Key Elements of an Indemnification AgreementWhy Founders Should Care About IndemnificationIndemnification Helps Attract Top Talent Agreement vs. Certificate of Incorporation or BylawsMandatory vs. Discretionary IndemnificationFinal...

Equity Tokens: Game Changer or Just Hype?

by Tyler Smith | Oct 31, 2025 | Business Transactions

Equity tokens have been getting a lot of buzz lately. Depending on who you ask, they’re either the future of startup funding or an overcomplicated gimmick wrapped in shiny crypto packaging. The truth? They might be a bit of both. Equity tokens represent actual...

Legal Considerations for AI Licensing Agreements in Business

by Staff Attorney | Oct 17, 2025 | AI Startup, Business Transactions

1. Intellectual Property Rights2. Data Privacy and Security3. Liability and Indemnification4. Performance Metrics and Warranties5. Term and TerminationConclusion As artificial intelligence (AI) continues to reshape industries worldwide, businesses are increasingly...

Founder Dispute: AKA Founder Divorce Series (Chapter Three)

by Staff Attorney | Oct 5, 2025 | Business Transactions

The Exiting Founder Equity DilemmaWhy Large Equity Stakes Are a ProblemWhy Cash Repurchase Rarely WorksPractical Solutions1. Repurchase with a Promissory Note2. Call Option Structure3. Investor or Secondary PurchaseThe Takeaway The Exiting Founder Equity Dilemma If...

Founder Dispute: AKA Founder Divorce Series (Chapter Two)

by Staff Attorney | Oct 2, 2025 | Business Transactions

Is There Such a Thing as an Amicable Founder Divorce?

The quick answer is yes. The long answer: it depends.

Founders often separate because of internal disputes, but that’s not always the case.

Sometimes, one founder simply wants or needs to step away — because of burnout, a better career opportunity, family obligations, or illness. Whatever the reason, it’s important to understand what an amicable exit should look like.