participation

At the end of 14c, participation of Old French participants (13c.) Who directly participated from Latin Latino participants (participatory participation), behavioral nouns from Latin participatory past participle "Part (n (participation)", "Participating share", "Participating share", "particeps" as an adjective from partaker, comrades, companions, "share and participate" )) + - cip -, weak shaped cape "take" (see ability)

Because "to become" is current participation, "past" becomes "time of the future".

Participation is often confused with liquidation preference, but in reality it is another concept. There are three types of participation: full participation, participation restriction, and no participation. All participating shares will receive the participation amount and share the liquidation gain at the time of conversion (if the stock is converted to common stock based on the conversion rate). Upper limit participation means sharing profit margin on a convertible basis until the stock reaches a certain multiple. Not participating indicated that the stock did not participate. In this case, the investor acquires a liquidation priority or converts the stock into ordinary shares, and the investor acquires the converted standard. In this case, clearing does not mean that all kinds of liquidity events, such as sale and IPO, do not necessarily go well, which means that the company is selling the asset.

Think of participation as doubling into income pool. Participation priority holders will never switch because they will always have higher values ​​/ shares than average shareholders in order to increase the settlement priority guaranteed at the time of participation (same value as ordinary shares). Founder should avoid participating in liquidation preference. Because it creates greater value for investors (thus less for founder than a non-participating liquidation offer). Participation is not as common as a settlement setting that does not participate

1) eDocs canceled the participation already described in the "clearing" section of the glossary and made a counterproposal. In other words, they are proposing to pay $ 1 per share for ordinary convertible preferred stock without you participating. While maintaining participation options, we are preparing to counterattack with a $ X estimate per share. What is the highest value of X that you are willing to provide to keep involving? 2) eDocs proposed price cuts to expedite vesting as described in the section entitled "Founder Stock, Options and Ownership". In other words, in addition to the founder's stock immediately, they provide the same term as the original spreadsheet. While maintaining the same vesting schedule, we are preparing to fight back at the price of $ X per share. What is the highest value of X that you are willing to provide to maintain the original attribution schedule?