The decision of an employee to tender their shares of stock in the S&S Air IPO or retain them and sell

them in the secondary market after the IPO is an individual risk decision. The risks associated with
tendering them in the initial IPO include being subject to underpricing of the stock as previously
mentioned. herefore, I would advise them that the risk is a personal one. If they wish to tender their shares
in the IPO, they are taking a larger risk than if they wait until after the IPO, playing it safe until the price
stabilizes in the secondary market. It is a matter of personal risk tolerance. Employees must realize that
failure to comply with the lockup period may result in legal action as a result of insider trading SEC
regulation.

Rakin
Chris is suggesting a conversion price of $25 because it means the stock price will have to increase before
the bondholders can benefit from the conversion. Even though the company is not publicly traded, the
conversion price is important. First, the company may go public in the future. The conversion price is part
of determining the number of shares to be received upon conversion. If shares never close above the
conversion price, the convertible bond is never converted to common shares. Usually, the conversion
price is set at a significant amount higher than the current price of the common stock to make conversion
desirable only if a company's common shares experience a significant increase in value.

Eshu

The conversion price is the price per share at which a convertible security, such as corporate bonds or
preferred shares, can be converted into common stock. Chris is suggesting a conversion price of $25
because it means the stock price will have to increase before the bondholders can benefit from the
conversion. The conversion price is set by management as part of the conversion ratio before the
convertibles are issued to the public. The conversion ratio is the par value of the convertible security
divided by the conversion price. The conversion price is part of determining the number of shares to be
received upon conversion. If shares never close above the conversion price, the convertible bond is never
converted to common shares.

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Rakin