Take! The overview of how the money is distributed in case of exit (liquidation, acquisition or other) is in progress from your heading table and is called “cascade”. With a simple participation, for example. B there are 2 founders and some option holders, it`s very simple. However, if you take outside funds, there will probably be new classes of shares that will be issued with different priorities and capital rights – you will notice that your cascade becomes quite complicated very quickly. The main intention behind stock options and investment agreements is to motivate employees and others to stay in the company and increase shareholder value as a whole. If the stock options are unshakable and have been exercised, the option holder becomes a shareholder of the company and can participate in the profit/value, for example. B if the company is sold. .