4. Shareholder Agreement
• Share Structure:
◦ Class A shares: 10 votes per share, held by Founders and founder-appointed board members
◦ Class B shares: 1 vote per share, held by other shareholders
• Voting Rights:
◦ Founder Voting Rights: Founder has a deciding vote or veto power on strategic matters.
◦ Supermajority Voting: Requires 51% approval, including founder-appointed directors' affirmative vote.
• Drag-Along and Tag-Along Rights:
◦ Drag-Along: Majority Class A shareholders can compel other shareholders to sell their shares under the same terms.
◦ Tag-Along: Minority shareholders can sell their shares under the same terms as majority shareholders.
• Preemptive Rights: Existing shareholders have the right to purchase new shares before they are offered to new investors.

5. Initial Funding Requirements
• Total Initial Funding Needed: $1,900,000
• Use of Funds: Initial setup includes 2 grow rooms, essential equipment, and partial automation.
Breakdown of Initial Investment:
◦ Land: $162,500
◦ Modular Steel Building: $500,000
◦ LED Grow Lights: $200,000
◦ Automated Climate Controls: $50,000
◦ Automated Watering/Fertigation Systems: $75,000
◦ Steel Security Fencing: $50,000
◦ Comprehensive Security System: $50,000
◦ Solar Panels: $100,000
◦ Rooftop Wind Turbines: $50,000
◦ Large Capacity Trimming Machine: $25,000
◦ Vacuum Seal Machine: $2,000
◦ Nutrients, Soil, Pots: $30,000
◦ Other Equipment: $20,000
◦ Used Truck: $25,000
◦ Founder Salary: $55,000
◦ Outsourced CFO/Accountant: $60,000
◦ Outsourced Attorney: $30,000
◦ Marketing: $20,000
Total Initial Investment: $1,474,500

6. Phased Expansion Strategy
• Phase 1: Initial setup (2 grow rooms) – $1,474,500
• Phase 2: Expand to 4 grow rooms – Estimated additional $750,000
• Phase 3: Expand to 6 grow rooms and full automation – Estimated additional $750,000
The strategy involves reinvesting profits from the initial operation to fund these expansions, thereby reducing the need for further external funding and minimizing investor dilution.