Chapter 21:SAMPLE COVER PAGE AND LEGENDS

CHAPTER 21

Sample Cover Page and Legends

DRESS A GOAT IN SILK AND IT IS STILL A GOAT. – CELTIC PROVERB

DEPENDING ON THE INTENDED USE OF THE BUSINESS PLAN , one or more legends or disclaimers should be prominently displayed on the inside cover pages of the plan and, as appropriate, within the body of the plan itself. For example, financial projections should be accompanied by assumptions and disclaimers that the projections will actually be achieved. The following legends are based on compliance with securities laws in the United States. However, the plan writer can expect that similar regulations may be applicable in other countries. In addition to securities law compliance, legends to protect the confidentiality of any of the information in the plan should also be included regardless of the intended use of the plan, and recipients should be required to sign some form of nondisclosure agreement similar to that included elsewhere in this book.

S AMPLE C OVER P AGE FOR B USINESS P LAN

CONFIDENTIAL AND PROPRIETARY

Copy Number: __________ Recipient: ______________ [Company Name] [Company Address] [Date of Business Plan] The information contained in this Business Plan is confidential and is intended only for use by the person listed above to whom it has been transmitted by [Name of company] (the “Company”). Any reproduction of this Plan, in whole or in part, or the divulgence of any of its contents, without the prior written consent of the Company, is prohibited. See inside for further restrictions on the use of this Plan.

S AMPLE L EGENDS

The following is a sample securities legend for the inside cover pages of a business plan. NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS BUSINESS PLAN IN CONNECTION WITH THE TRANSACTIONS DESCRIBED HEREIN, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY.

THIS BUSINESS PLAN DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OTHER THAN THE SECURITIES SPECIFICALLY OFFERED HEREBY, NOR DOES IT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY FROM ANY PERSON IN ANY STATE OR OTHER JURISDICTION IN WHICH SUCH OFFER WOULD BE UNLAWFUL. THE OFFERING OF THE SECURITIES DESCRIBED IN THIS PLAN HAS NOT BEEN REGISTERED WITH THE FEDERAL SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED. NEITHER THE DELIVERY OF THIS BUSINESS PLAN AT ANY TIME, NOR ANY SALE OF SECURITIES HEREUNDER, SHALL UNDER ANY CIRCUMSTANCES CREATE AN IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. OFFERS AND SALES WILL ONLY BE MADE TO PERSONS WHO HAVE THE KNOWLEDGE AND EXPERIENCE TO EVALUATE THE MERITS AND RISKS OF THE INVESTMENT AND WHO HAVE THE ECONOMIC MEANS TO AFFORD THE ILLIQUIDITY OF THE SECURITIES OFFERED HEREBY.

THE INFORMATION SET FORTH HEREIN IS BELIEVED BY THE COMPANY TO BE RELIABLE. IT MUST BE RECOGNIZED, HOWEVER, THAT PREDICTIONS AND PROJECTIONS AS TO THE COMPANY’S FUTURE PERFORMANCE ARE NECESSARILY SUBJECT TO A HIGH DEGREE OF UNCERTAINTY AND NO WARRANTY OF SUCH PROJECTIONS IS EXPRESSED OR IMPLIED HEREBY.