Driving Business Advantage
FOLEY
HOAG LLP
Driving Business Advantage
What does the term sheet say?
"In the event of any liquidation, dissolution or winding up of the Company,
the proceeds shall be paid as follows:
■ Alternative 1 (Non-Participating Preferred Stock): "First pay the
Original Purchase Price on each share of Series A Preferred. Thereafter,
the balance of any proceeds shall be distributed pro rata to holders of
Common Stock."
■ Alternative 2 (Participating Preferred Stock with Cap): "First pay the
Original Purchase Price on each share of Series A Preferred. Thereafter,
Series A Preferred participates with Common Stock on an as-converted
basis until the holders of Series A Preferred receive an aggregate of [two]
times the Original Purchase Price.
"
■ Alternative 3 (Participating Preferred Stock): "First pay the Original
Purchase Price on each share of Series A Preferred. Thereafter, the
Series A Preferred participates with the Common Stock on an as-
converted basis.'
"
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