True/False for the following:
1) It is standard practice for a term sheet to require more than half the board seats to go to the seed investors.
2) The term sheet between an investors and founder is a legally binding agreement.
3) If a 1X liquidation preference is included in the term sheet the Venture Capitalist will never be able to realize a gain on its investment but will be protected from a loss.
4) An option pool is used by founders to make payments to employees. The options grant the employees the right but not the obligation to buy shares of the companies shares at a set price before they expire. Using options conserves cash and ties the employee to the long-term success of the venture.
5) A term sheet will address what happens to the shares of founders should founders decide to leave the company.