Non-Participating Cumulative Preferred Share

Assumptions Dividend Value % Ownership % Participation

Common Investor #1 na $25,000,000 50.0% 62.5%
Common Investor #2 na $15,000,000 30.0% 37.5%
Series A Preferred Investor 8.0% $10,000,000 20.0% 0.0%
Total $50,000,000 100.0% 100.0%

Change in Value of Business (on Sale) 0%

Holding Period (5 Year Analysis)

Close 1 2

Valuation
Total Equity Value of the Business $50,000,000 $50,000,000 $50,000,000
Cumulative Preferred Dividend Value $0 $800,000 $1,600,000

Analysis
Sale Value of Business (Equity) $50,000,000 $50,000,000 $50,000,000
Less: Cum Pref Dividends $0 ($800,000) ($1,600,000)
Post-dividend Equity Value $50,000,000 $49,200,000 $48,400,000

Original Preferred Purchase Price (Liquidation Pref) $10,000,000 $10,000,000 $10,000,000

As-converted Value of Preferred $10,000,000 $9,840,000 $9,680,000
Value of Preferred on Sale of Business (Max of above) $10,000,000 $10,000,000 $10,000,000

Sale Value of Business $50,000,000 $50,000,000 $50,000,000

Less: Cum Pref Dividends $0 ($800,000) ($1,600,000)
Less: Value of Pref Share on Sale ($10,000,000) ($10,000,000) ($10,000,000)
Common Share Value $40,000,000 $39,200,000 $38,400,000

Common Share Participation

Common Investor #1 $25,000,000 $24,500,000 $24,000,000
Common Investor #2 $15,000,000 $14,700,000 $14,400,000
Series A Preferred Investor $0 $0 $0

Preferred Share Summary

Cumulative Preferred Dividends $0 $800,000 $1,600,000
Value of Preferred Share on Sale $10,000,000 $10,000,000 $10,000,000
Participation in Common Shares $0 $0 $0
Total Preferred Share Cash Value $10,000,000 $10,800,000 $11,600,000
Common Investor #1 $25,000,000 $24,500,000 $24,000,000
Common Investor #2 $15,000,000 $14,700,000 $14,400,000
Total Value of Equity $50,000,000 $50,000,000 $50,000,000

Summary 5-Yr Exit Total Return IRR

Common Investor #1 -10.0% -2.1% ($25,000,000) $0 $0
Common Investor #2 -10.0% -2.1% ($15,000,000) $0 $0
Preferred Investor 40.0% 7.0% ($10,000,000) $0 $0
Total 0.0% 0.0% ($50,000,000) $0 $0
 Series A Preferred Share Analysis

Liquidation Participation
1.0x
1.0x
1.0x 0.0x

ding Period (5 Year Analysis)

3 4 5 Preferred Investor Re

40.0% 0%
$50,000,000 $50,000,000 $50,000,000 -100%

Change in Equity Value of the Company (on Sale)

$2,400,000 $3,200,000 $4,000,000 -75%
-50%
-25%
0%
$50,000,000 $50,000,000 $50,000,000 25%
($2,400,000) ($3,200,000) ($4,000,000) 50%
$47,600,000 $46,800,000 $46,000,000 75%
100%
$10,000,000 $10,000,000 $10,000,000 125%
$9,520,000 $9,360,000 $9,200,000 150%
$10,000,000 $10,000,000 $10,000,000 175%
200%
$50,000,000 $50,000,000 $50,000,000 225%
($2,400,000) ($3,200,000) ($4,000,000) 250%
($10,000,000) ($10,000,000) ($10,000,000) 275%
$37,600,000 $36,800,000 $36,000,000 300%

Common Investor Re
$23,500,000 $23,000,000 $22,500,000
$14,100,000 $13,800,000 $13,500,000 -10.0% 0%
$0 $0 $0 -100%
Change in Equity Value of the Company (on Sale)

-75%
-50%
$2,400,000 $3,200,000 $4,000,000 -25%
$10,000,000 $10,000,000 $10,000,000 0%
$0 $0 $0 25%
$12,400,000 $13,200,000 $14,000,000 50%
$23,500,000 $23,000,000 $22,500,000 75%
$14,100,000 $13,800,000 $13,500,000 100%
$50,000,000 $50,000,000 $50,000,000 125%
150%
175%
 Change in Equity Value o
$0 $0 $22,500,000 200%
$0 $0 $13,500,000 225%
$0 $0 $14,000,000 250%
$0 $0 $50,000,000 275%
300%
Preferred Investor Return Analysis (5-yr Exit)
Preferred Dividend Rate
2% 4% 6% 8% 10% 12%

Common Investor Return Analysis (5-yr Exit)

Preferred Dividend Rate
2% 4% 6% 8% 10% 12%
Full-Participating Cumulative Preferred Share

Assumptions Dividend Value % Ownership % Participation

Common Investor #1 na $25,000,000 50.0% 50.0%
Common Investor #2 na $15,000,000 30.0% 30.0%
Series A Preferred Investor 8.0% $10,000,000 20.0% 20.0%
Total $50,000,000 100.0% 100.0%

Change in Value of Business (on Sale) 0%

Holding Period (5 Year Analysis)

Close 1 2

Valuation
Total Equity Value of the Business $50,000,000 $50,000,000 $50,000,000
Cumulative Preferred Dividend Value $0 $800,000 $1,600,000

Analysis
Sale Value of Business (Equity) $50,000,000 $50,000,000 $50,000,000
Less: Cum Pref Dividends $0 ($800,000) ($1,600,000)
Post-dividend Equity Value $50,000,000 $49,200,000 $48,400,000

Original Preferred Purchase Price (Liquidation Pref) $10,000,000 $10,000,000 $10,000,000

As-converted Value of Preferred $10,000,000 $9,840,000 $9,680,000
Value of Preferred on Sale of Business (Max of above) $10,000,000 $10,000,000 $10,000,000

Sale Value of Business $50,000,000 $50,000,000 $50,000,000

Less: Cum Pref Dividends $0 ($800,000) ($1,600,000)
Less: Value of Pref Share on Sale ($10,000,000) ($10,000,000) ($10,000,000)
Common Share Value $40,000,000 $39,200,000 $38,400,000

Common Share Participation

Common Investor #1 $20,000,000 $19,600,000 $19,200,000
Common Investor #2 $12,000,000 $11,760,000 $11,520,000
Series A Preferred Investor $8,000,000 $7,840,000 $7,680,000

Preferred Share Summary

Cumulative Preferred Dividends $0 $800,000 $1,600,000
Value of Preferred Share on Sale $10,000,000 $10,000,000 $10,000,000
Participation in Common Shares $8,000,000 $7,840,000 $7,680,000
Total Preferred Share Cash Value $18,000,000 $18,640,000 $19,280,000
Common Investor #1 $20,000,000 $19,600,000 $19,200,000
Common Investor #2 $12,000,000 $11,760,000 $11,520,000
Total Value of Equity $50,000,000 $50,000,000 $50,000,000

Summary 5-Yr Exit Total Return IRR

Common Investor #1 -28.0% -6.4% ($25,000,000) $0 $0
Common Investor #2 -28.0% -6.4% ($15,000,000) $0 $0
Preferred Investor 112.0% 16.2% ($10,000,000) $0 $0
Total 0.0% 0.0% ($50,000,000) $0 $0
 Series A Preferred Share Analysis

Liquidation Participation
1.0x
1.0x
1.0x 1.0x

ding Period (5 Year Analysis)

3 4 5 Preferred Investor Re

112.0% 0%
$50,000,000 $50,000,000 $50,000,000 -100%

Change in Equity Value of the Company (on Sale)

$2,400,000 $3,200,000 $4,000,000 -75%
-50%
-25%
0%
$50,000,000 $50,000,000 $50,000,000 25%
($2,400,000) ($3,200,000) ($4,000,000) 50%
$47,600,000 $46,800,000 $46,000,000 75%
100%
$10,000,000 $10,000,000 $10,000,000 125%
$9,520,000 $9,360,000 $9,200,000 150%
$10,000,000 $10,000,000 $10,000,000 175%
200%
$50,000,000 $50,000,000 $50,000,000 225%
($2,400,000) ($3,200,000) ($4,000,000) 250%
($10,000,000) ($10,000,000) ($10,000,000) 275%
$37,600,000 $36,800,000 $36,000,000 300%

Common Investor Re
$18,800,000 $18,400,000 $18,000,000
$11,280,000 $11,040,000 $10,800,000 -28.0% 0%
$7,520,000 $7,360,000 $7,200,000 -100%
Change in Equity Value of the Company (on Sale)

-75%
-50%
$2,400,000 $3,200,000 $4,000,000 -25%
$10,000,000 $10,000,000 $10,000,000 0%
$7,520,000 $7,360,000 $7,200,000 25%
$19,920,000 $20,560,000 $21,200,000 50%
$18,800,000 $18,400,000 $18,000,000 75%
$11,280,000 $11,040,000 $10,800,000 100%
$50,000,000 $50,000,000 $50,000,000 125%
150%
175%
 Change in Equity Value o
$0 $0 $18,000,000 200%
$0 $0 $10,800,000 225%
$0 $0 $21,200,000 250%
$0 $0 $50,000,000 275%
300%
Preferred Investor Return Analysis (5-yr Exit)
Preferred Dividend Rate
2% 4% 6% 8% 10% 12%

Common Investor Return Analysis (5-yr Exit)

Preferred Dividend Rate
2% 4% 6% 8% 10% 12%