1.Presentation to Founder Fuel Cohort February18, 2014 . By: James Smith and Dan ScottOpen Doors. Close Deals.

2. Presentation to Founder Fuel Cohort February18, 2014 . By: James Smith and Dan ScottOpen Doors. Close Deals. 3. About LaBarge Weinstein LLP A business law firm established in 1997 Recognized as the leading national firm for technology and knowledge-based companies 40+ professionals serving clients across Canada and abroad from offices in Ottawa, Toronto, Waterloo and Vancouver - servicing Montreal from Ottawa for now Full service business law practice, including: ! ! ! ! ! !Corporate/Commercial Securities, Corporate Finance & Debt Financing Mergers & Acquisitions Intellectual Property and Licensing Taxation and Tax Planning Human Resources3 4. Some Recent LW DealsClosed over $7 billion in M&A transactions and $6 billion in VC and venture debt financings since founding in 1997 4 5. Conver'bleDebtFundamentals Thevariables,andwhatreallygetsnego'ated: Maturitydatewhendoesthenoteexpire? Interestrate4-10% Conversiondiscountusually20%,BDCisanexcep'on Capamountwhatisthis? Conversioneventsqualied/non-qualiednancing,sale,maturity Specialrightsshareholder-typerights So,howdothenotesworkinyournextnancingroundcap,discount? Remember#1-thenotevalue(includingdiscount)reducesyourvalua'on Remember#2paycloseaTen'ontothedenominatorindeningthecappedprice! Remember#3dosomemodellingbeforeyousign(orhaveyourlawyerdoit) 6. TheDreadedPricedRound Unlessyoureaimingtoplease,tryandpushinvestorstowardconver'blenotes Nego'a'ngapre-moneyvalua'on TheESOPtopup Thefunc'onbetween$$raisedandpre-money Developyourzenonthecontrolstuvetos,boardrepresenta'on,proratarights,etc. Serenityprayer Team>fncValue>fncControl 7. BDCThang Anythingyoudontget? $150,000 15%discount $3.5mcaponconversion Bunchofinvestorrights Totakeit,ornottotakeit? Howdootherinvestorsdigestit? HowwelldoesBDCplayinthesandbox? 8. BeyondBDC Raisingmoneyassalescyclequalify,engage,close Developamomentumplan Theriseoftheproject,andtheendofthepitch PayaTen'ontoeachbucketinyoursyndicate Between6-10onour2013deals Taxonomy: Brawn(1-2,$100-200) Brains(1-2,$25-50) Bros(4-8,$25-50k)