Stock Option Scenarios

	A	B	C	D	E	F	H	I	J
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2	Filled out by the Company			Filled out by the Optionholder
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4	Strike Price for Optionholder Shares	$0.10			Income Tax Rate	Long Term Capital Gains Rate	Shares to Exercise	10,000
5	Current 409A Valuation	$0.20			Income Tax Rate	Long Term Capital Gains Rate	Paper value at Exercise	$2,000
6				Federal	35%	25%	Cost to Exercise	$1,000
7	Baseline			State	10%	10%	Tax Hit at Exercise	$450
8	Company Valuation (M$)	10					Total Cost to Exercise ("Today")	$1,450
9	Price / Share @ Valuation	$1.00		Number of Shares	10,000
10							Date of Exercise	4/10/2024
11							Planned Date of Sale	4/10/2028
12							Scenario at Sale	Scenario 2
13	Scenario	Valuation (M$)	Additional Dilution	Price / Share	Pre-Tax Value of Shares	Future Savings From Early Exercise
14	Baseline	$10	0%	$1.00	$10,000	$800		Exercise Now	Exercise at Sale
15	Scenario 2	$50	5%	$4.75	$47,500	$4,550	Proceeds at Sale	$47,500
16	Scenario 3						Cost Today	$1,450	$0
17	Scenario 4						Cost at Sale	$15,925	$21,925
18	Scenario 5						Total Cost	$17,375	$21,925
19							Take Home at Sale	$30,125	$25,575
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21							Savings from earlier exercise	$4,550
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