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Filled out by the CompanyFilled out by the Optionholder
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Strike Price for Optionholder Shares
$0.10Income Tax RateLong Term Capital Gains RateShares to Exercise10,000
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Current 409A Valuation$0.20Paper value at Exercise$2,000
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Federal35%25%Cost to Exercise$1,000
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BaselineState10%10%Tax Hit at Exercise$450
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Company Valuation (M$)10
Total Cost to Exercise ("Today")
$1,450
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Price / Share @ Valuation$1.00
Number of Shares
10,000
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Date of Exercise7/7/2018
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Planned Date of Sale7/7/2022
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Scenario at SaleScenario 2
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ScenarioValuation (M$)Additional DilutionPrice / SharePre-Tax Value of SharesFuture Savings From Early Exercise
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Baseline$100%$1.00$10,000$800Exercise NowExercise at Sale
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Scenario 2$505%$4.75$47,500$4,550Proceeds at Sale$47,500
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Scenario 3Cost Today$1,450$0
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Scenario 4Cost at Sale$15,925$21,925
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Scenario 5Total Cost$17,375$21,925
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Take Home at Sale$30,125$25,575
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Savings from earlier exercise
$4,550
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