Business Entity

Business Entity: Nomensi

Daniel Santiago

Legal Environment in Business, LAW 529

Mr. Ed Adelman, J.D.

March 19, 2007

Business Entity: Nomensi

Business Scenario

I along with three other former employees of ChipeX, Inc. have designed and developed a prototype for a new microprocessor in hopes it can provide customers an alternative to those designed by AMD and Intel. Venture capitalists will provide whatever financing is needed to manufacture the processor chip, provided they take 51% of the ownership interest. The venture capitalists do not want to be involved in the management and business operations and have agreed to allow the engineers to control the operations, provided certain financial objectives are achieved. They forecast to begin high volume manufacturing of the chip in two years. According to many expert analysts, the chip should be a big player in the semiconductor industry. Eventually, the business enterprise, called Nomensi, will go public in five