Shadow Preferred Stock, or SAFE Preferred Stock, is the name given to series of preferred stock given to holders of SAFEs or convertible notes when they convert into preferred stock in connection with a priced round, and at a discount (because of a discount in the SAFEs or convertible notes themselves or because the company’s value exceeded any valuation cap in the SAFEs or convertible notes) to the preferred stock issued to new money investors (called “standard preferred stock”). Each series of shadow preferred stock has the same rights as the standard preferred stock except for with respect to (1) the liquidation price per share, (2) the initial conversion price per share and (3) the dividend amount, each of which reflects the price per share at which the SAFE/convertible note converted into preferred stock for the shares of shadow preferred stock (and not the price per share paid for the standard preferred stock).