Driving Business Advantage

FOLEY HOAG LLP Protective Provisions Driving Business Advantage (aka "Negative covenants," "Veto rights" or "blocking rights") ■ Essentially a list of things the company can't do without investors' consent - consent at either the Board or Stockholder level ■This is a foot on the break, not on the accelerator ■ Usually hotly negotiated ■ Gets complicated in later rounds; interests of investors can diverge ■ The relevant thresholds are very important depending on the dynamics of your investor base © 2014 Foley Hoag LLP. All Rights Reserved. 31

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