Seed Funding Agreement

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Preferred shares can be attractive to investors because they give investors more rights within the company than common shares. Among these rights, we hope that the above will provide an approximate and finite framework for how we (and many other investors) think about certain conditions for Seed transactions. They may be wondering why we would do that, that we would “drop our pants” de facto and that we would disclose our “promotional gifts”. But that`s the thing: we don`t consider the shareholders` agreement in a classic round of negotiations, where each party thinks tactically about how to build leverage to appear generous on certain points, to win with as many others as possible. . . .

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