
122: Hard clauses in a term sheet
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Founders Shouldn't Make Life Difficult
There are three types of irias: economic rights, governance and operating covernants. Economic rights generally around what affects my shareholding. No one can touch it. Founders should not try to move it into a threshold. On the annual budget, there should be a devx, deviation, percentage from annual budget. If i don't trust the founder in hiding somebody while while, am i even doing that? Rase says he likes to keep operating governants very, very loose.
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