Immediately before an IPO occurs, holders of existing preferred shares expect that the following deal clause will be used to convert their shares to another class of shares:

a. A redemption clause will be used to allow the company to re-purchase the shares. b. An optional conversion clause will be used to maintain preferred share status. c. A mandatory conversion clause will be used to convert all preferred shares to common shares. d. A right of first refusal will be used to allow purchase of additional shares. e. An anti-dilution clause will be used to allow the company to issue additional common shares