[NYCounihan]

It's an unusual term that I haven't seen before.

I'm of two minds here:

1. If the investor is a former rainmaker banker who will go above & beyond in the transaction, effort that would normally cost you $mm's, she might be justified. She could also have factored that "value add" into a lower valuation rather than in a separate right.

2. Ascribe a monetary value to the term and adjust other areas of the financing (valuation, control rights, etc) accordingly. There is nothing unethical about issuing unusual terms as long as all parties are informed and it is done transparently.