Case | HBS Case Collection | February 2000 (Revised August 2005)

Deep Sight Technology, Inc.

by Henry B. Reiling and Catherine M. Conneely

Abstract

The founders of a deep sea technology company must refine their tentative capital structure and founders agreement in response to tax factors. Some parties are conveying partnership assets, others are conveying rights to an invention, another will be primarily providing management talent. All are buying "founders stock." Additional financing, including a public offering, is contemplated. A rewritten version of an earlier case.

Keywords: Contracts; Agreements and Arrangements; Capital Structure; Alliances; Taxation; Entrepreneurship; Technology Industry;

Citation:

Reiling, Henry B., and Catherine M. Conneely. "Deep Sight Technology, Inc." Harvard Business School Case 200-047, February 2000. (Revised August 2005.)