Capitalization Table

Round 1 in Year 0
Price/Share $1.00
Invest- # of Owner-
Shareholders ment Shares ship
Management - 3.900 75.0%
Investor 1 $1.3 1.300 25.0%
Investor 2 - 0.000 0.0%
Investor 3 - 0.000 0.0%
Total $1.3 5.200 100.0%

Post-Money Valuation $5.2

Pre-Money Valuation $3.9

Investor 1 Returns

Year 0 Year 1 Year 2 Year 3 Year 4

Exit-Year EBITDA $5.8
Operating Performance 100.0%
EBITDA Multiple 7.0x
Enterprise Value $40.6
Less: Net Debt 0.0
Total Equity Value $40.6
Investor 1 Ownership 25.0%
Investor 1 Equity Value $10.2
Proceeds at Exit $10.2
Total Proceeds to Investor 1 ($1.3) - - - $10.2

Internal Rate of Return (IRR) 67%

Cash-on-Cash (CoC) 7.8x
 Capitalization Table

Round 1 in Year 0 Round 2 in Year 2

Price/Share $1.00 $1.96
Invest- # of Owner- Invest- # of Owner-
Shareholders ment Shares ship ment Shares ship
Management - 3.900 75.0% - 3.900 51.7%
Investor 1 $1.3 1.300 25.0% $1.1 1.861 24.7%
Investor 2 - 0.000 0.0% $3.5 1.785 23.7%
Investor 3 - 0.000 0.0% - 0.000 0.0%
Total $1.3 5.200 100.0% $4.6 7.546 100.0%

Post-Money Valuation $5.2 $14.8

Pre-Money Valuation $3.9 $10.2

Investor 1 Returns

Year 0 Year 1 Year 2 Year 3 Year 4

Exit-Year EBITDA $5.8
Operating Performance 100.0%
EBITDA Multiple 7.0x
Enterprise Value $40.6
Less: Net Debt 0.0
Total Equity Value $40.6
Investor 1 Ownership 24.7%
Investor 1 Equity Value $10.0
Proceeds at Exit $10.0
Total Proceeds to Investor 1 ($1.3) - ($1.1) - $10.0

Internal Rate of Return (IRR) 54%

Cash-on-Cash (CoC) 4.2x
 Capitalization Table

Round 1 in Year 0 Round 2 in Year 2

Price/Share $1.00 $1.96
Invest- # of Owner- Invest- # of Owner-
Shareholders ment Shares ship ment Shares ship
Management - 3.900 75.0% - 3.900 51.7%
Investor 1 $1.3 1.300 25.0% $1.1 1.861 24.7%
Investor 2 - 0.000 0.0% $3.5 1.785 23.7%
Investor 3 - 0.000 0.0% - 0.000 0.0%
Total $1.3 5.200 100.0% $4.6 7.546 100.0%

Post-Money Valuation $5.2 $14.8

Pre-Money Valuation $3.9 $10.2

Investor 1 Returns

Dividend 8.0% Year 0 Year 1 Year 2 Year 3 Year 4

Exit-Year EBITDA $5.8
Operating Performance 100.0%
EBITDA Multiple 7.0x
Enterprise Value $40.6
Less: Net Debt 0.0
Total Equity Value $40.6
Less: Total Accrued Dividends (1.2)
Remaining Equity $39.4
Investor 1 Ownership 24.7%
Investor 1 Equity Value $9.7
Investor 1 Accrued Dividends 0.7
Proceeds at Exit $10.4
Total Proceeds to Investor 1 ($1.3) - ($1.1) - $10.4

Internal Rate of Return (IRR) 56%

Cash-on-Cash (CoC) 4.3x
 Capitalization Table

Round 1 in Year 0 Round 2 in Year 2

Price/Share $1.00 $1.96
Invest- # of Owner- Invest- # of Owner-
Shareholders ment Shares ship ment Shares ship
Management - 3.900 75.0% - 3.900 51.7%
Investor 1 $1.3 1.300 25.0% $1.1 1.861 24.7%
Investor 2 - 0.000 0.0% $3.5 1.785 23.7%
Investor 3 - 0.000 0.0% - 0.000 0.0%
Total $1.3 5.200 100.0% $4.6 7.546 100.0%

Post-Money Valuation $5.2 $14.8

Pre-Money Valuation $3.9 $10.2

Investor 1 Returns

Dividend 8.0% Year 0 Year 1 Year 2 Year 3 Year 4

Exit-Year EBITDA $5.8
Operating Performance 100.0%
EBITDA Multiple 7.0x
Enterprise Value $40.6
Less: Net Debt 0.0
Total Equity Value $40.6
Less: Total Participation (5.9)
Less: Total Accrued Dividends (1.2)
Remaining Equity $33.5
Investor 1 Ownership 24.7%
Investor 1 Equity Value $8.3
Investor 1 Participation 2.4
Investor 1 Accrued Dividends 0.7
Proceeds at Exit $11.3
Total Proceeds to Investor 1 ($1.3) - ($1.1) - $11.3

Internal Rate of Return (IRR) 60%

Cash-on-Cash (CoC) 4.7x
 Security IRR CoC
Convertible Preferred without Dividend 54% 4.2x
Convertible Preferred with Dividend 56% 4.3x
Participating Preferred with Dividend 60% 4.7x