www.payne.org

SEPTEMBER 22, 2011

2 Stock Classes: Common and Preferred. 4 Vesting. Ive seen companies with $75m of preference, and very frustrated common stockholders that realize the company needs to get acquired for $100m or more for them to start making any money. (To Common stock holders can use the "total preference" to estimate their returns.

Equity 56

Equity Employee Vesting Preferred Stock 56

Startup Company Lawyer

FEBRUARY 21, 2010

Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless. If you can’t figure this out yourself, you should probably build a liquidation preference spreadsheet to model how liquidation preferences work depending on M&A transaction value.

Retention 31

Retention Liquidation Preference Employee Common Stock 31

thinkspace.com

SEPTEMBER 7, 2012

Manager or Junior Engineer 0.2 - 0.33. How long should people vest – four years? Investors routinely subject founder shares to vesting, but there is no rule that says that founders cannot, or should not, impose vesting on themselves. And the vesting doesn’t necessarily need to be time-based either.

Equity 62

Equity Employee Founder CTO Hire 62