These are the changes made to the side letter that we sent over after our lawyers had reviewed it/given us a clean copy.. Deal terms breakdown. SAFE: $200,000 on a $5.5M post-money valuation cap with no discount. Option: Additional $1M at a $16M post-money valuation. ===. Removed the 2 year expiration of the option to invest an additional $1M.. The only expiration of the option is now $1.5M in external capital raised. Board seat takes effect when they invest a total of $1M in Twos (aka when they exercise $800k of the $1M option). Major investor rights take effect when they invest a total of $1M in Twos. Preemptive rights. Information rights. Rights of first refusal and co-sale. Registration rights. “and on the same basis as any other investors in such equity financing, without regard to any otherwise applicable minimum share ownership requirements“. The board seat will survive an equity financing, the threshold amount is invested, and the investor does not otherwise have the right to designate a director pursuant to the definitive documents relating to the equity financing. Liquidation preference comes BEFORE the holders of other preferred stock. “The Option's stock liquidation preference will be the senior to all other classes or series of the company's capital stock“. Or at least pari passu with that of other preferred stock. “Should any other investor with pro-rata rights choose not to purchase its full pro rata share, then TBV shall have the right to purchase the remaining pro rata shares“. Drag along rights put back in the contract. When 50% of the voting power decides to sell, and the board of directors approves, then everyone has to sell.