Driving Business Advantage

FOLEY HOAG LLP Other Key Terms (cont'd) Driving Business Advantage ■ Pre-emptive rights - Right to participate in future financings -Make sure it is based on fully diluted ownership, not % of preferred ■ Pay to Play -Ability for investors to force each other to invest in future rounds. ■ Information rights -Make sure appropriate restrictions on use and not sent to competitors ▪ Registration rights (IPO) - Standard and not worth heavily negotiating as long as reasonable © 2014 Foley Hoag LLP. All Rights Reserved.

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