Setting up liquidation preferences

Create the liquidation preferences for an investment round in Diligent Equity.

1. Go to the Securities section in the navigation sidebar and select Shares.

   The details of the company's previous securities issuances are displayed.

2. Select the preferred round and select Settings on the toolbar.

   The Settings window opens.

3. Select the Liquidation tab.

4. Select On to enable this feature.

5. Complete the following fields.

   1. Preference amount: This field defaults to 1 but can be overwritten with a different multiple.

   2. Dividend: If the liquidation preference includes an interest or dividend accrual, enter the percentage here.

      Accrued dividend is the default. Enter a date range if dividends should be accrued only when declared.

   3. Participating Preferred: Select if it is participating preferred stock.

   4. Only when proceeds do not exceed: Select if there is a cap on participation, and enter the multiple that applies.

   5. Non-Participating Preferred: Select if it is non-participating preferred stock.

   6. Carve out: minimum proceeds of: If there is carve out mechanism insert the minimum proceeds in %.

   7. Comments: Record any additional notes.

   Select Close to save an changes made to the Round Settings.