Suppose that EBV decides to consider six possible structures for the Series A stock in Exercise 8.2:

Structure I: The original structure considered in Exercise 8.2: 6M shares of CP.

Structure II: 6M shares of common.

Structure III: RP + 6M shares of common.

Structure IV: PCP with participation as-if 6M shares of common.

Structure V: PCPC with participation as-if 6M shares of common, with liquidation return capped at 5 times OPP.

Structure VI: RP ($4M APP) 15M shares of CP ($2M APP).

Structures IV and V have mandatory conversion upon a QPO, where a QPO is any offering of at least $5 per common share and $15M of proceeds. For the purpose of solving this problem, assume that any exit above $5 per share will qualify as a QPO (i.e., acquisitions for at least $5 per common share would also be considered to be QPOs).

Draw an exit diagram for each structure.