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Someone wants to invest in my company has given my these options. What option is best and why? Option 1: $100,000 common units purchase common

Someone wants to invest in my company has given my these options. What option is best and why?

Option 1: $100,000 common units

  • purchase common units at$4
  • one board seat
  • right of first refusal on up to $400K of any future equity raise

Option 2: $500,000 convertible notes

  • One year notes bearing simple interest at 8% per annum
  • principal and interest converts into equity issued in the next equity raise at a price per share equal to 75% of the price paid by other investors
  • restriction at additional debt
  • warrants to purchase 10,000 units at $.01 per unit

I think the first option is first but can you explain which one it is best and why

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