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Should BHI participate in Series B or.docx
1. 1. Should BHI participate in Series B or not? Why?
1. Should BHI participate in Series B or not? Why? If so, should it provide the bridge, and in
what form?The term sheet for the bridge must protect the BHIa. Talk about governance:
board seat, right to approve/veto business decisions if certain performance thresholds are
not first metb. Exit rights: right to exit if PEG is not successful in bringing on additional
investors. Right to preferential liquidation over later investorsc. Establish ESOP. High
quality local sales people are essential to PEG’s success. The ESOP should incentivize
them.d. Should BHI negotiate for a $1 million investment based on a lower pre-money
valuation, thereby increasing its stake. Should they include anti-dilution provisions to
protect against any down round. e. Should the bridge financing be structured as a
convertible bond.f. Should PEG develop and report on impact measures?
