AI
Tuesday, July 29, 2008 11:09:14 AM
The "Seller" receives preferred shares based upon a pre-arranged dollar amount, no matter how many commons it would take... Yes, shares that could be "converted to commons" at any time they wish & usually convert at between 85-95% of the average 5 days (although those "C" shares convert at 21.25% - talk about a deal for family!)
Not only that... but look at Swartz's deal.... Preferred D Shares, along with $50k worth of commons per year (figuring current pps that would be at least 125 million common shares! EVERY YEAR) on top of a $125k gauranteed salary, even if he was fired!
Yes, the preferred shares may hold things off for a little while on the big chunk of it, but it's worse for the common shareholder even more with every deal TS does!
Not only that... but look at Swartz's deal.... Preferred D Shares, along with $50k worth of commons per year (figuring current pps that would be at least 125 million common shares! EVERY YEAR) on top of a $125k gauranteed salary, even if he was fired!
Yes, the preferred shares may hold things off for a little while on the big chunk of it, but it's worse for the common shareholder even more with every deal TS does!
