Sample Company, Inc.

Liquidation Preference Analysis

Aggregate
Convert to Amount for Exercise
Current Capitalization Liquidation Pref Common? Liquidation Pref Price
Common Stock Outstanding 10,000,000
Series A Preferred Stock Outstanding 2,500,000 $1.00000 #VALUE! #VALUE!
Series A Warrants Outstanding 100,000 $1.00000 #VALUE! #VALUE! $100,000.00
Series B Preferred Stock Outstanding 2,000,000 $1.25000 #VALUE! #VALUE!
Series B Warrants Outstanding 25,000 $1.25000 #VALUE! #VALUE! $31,250.00
Series C Preferred Stock Outstanding 1,000,000 $1.50000 #VALUE! #VALUE!
#VALUE!

Series A Original Issue Price $1.0000 $0.00

Series A New Conversion Price $1.0000
Series B Original Issue Price $1.2500
Series B New Conversion Price $1.2500
Series C Original Issue Price $1.5000
Series C New Conversion Price $1.5000

Current Capitalization (on an as converted to Common Stock basis) Exercise Common Stock
Common Stock Outstanding 10,000,000 10,000,000
$0.10 Options 200,000 $0.1000 #VALUE! #VALUE!
$0.15 Options 425,000 $0.1500 #VALUE! #VALUE!
$0.175 Options 330,000 $0.1750 #VALUE! #VALUE!
$0.21 Options 60,000 $0.2100 #VALUE! #VALUE!
$0.25 Options 15,000 $0.2500 #VALUE! #VALUE!
$0.30 Options 200,000 $0.3000 #VALUE! #VALUE!
$0.38 Options 2,500,000 $0.3800 #VALUE! #VALUE!
Series A Preferred Stock Outstanding 2,500,000 #VALUE!
Series A Warrants Outstanding 100,000 $1.0000 #VALUE! #VALUE!
Series B Preferred Stock Outstanding 2,000,000 #VALUE!
Series B Warrants Outstanding 25,000 $1.2500 #VALUE! #VALUE!
Series C Preferred Stock Outstanding 1,000,000 #VALUE! #VALUE!
Total Shares Outstanding 19,355,000 #VALUE! Total Common

Liquidation Amounts (Preferred Stock ONLY)

Aggregate Outstanding Preferred Stock Liquidation Preference $6,500,000.00
Aggregate Preferred Stock Warrant Liquidation Preference $131,250.00
Aggregate Preferred (including warrants) Liquidation Preference $6,631,250.00

Amount Remaining For Common #VALUE!

Price per Share for Common #VALUE! #VALUE!
Liquidation Amounts/Prices Convert?
Series C Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
Series B Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
Series B Warrants Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
Series A Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
Series A Warrants Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
Common Liquidation Amount/Price #VALUE! #VALUE!
$0.10 Option Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
$0.15 Option Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
$0.175 Option Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
$0.21 Option Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
$0.25 Option Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
$0.30 Option Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
$0.38 Option Liquidation Amount/Price #VALUE! #VALUE! #VALUE!
#VALUE!
Net Acquisition Price $25,000,000.00
Acquisition Price $25,000,000 <--- INPUT VALUE

Management (See "Management" Tab for Details) Net Return

Alpha #VALUE!
Beta #VALUE!
Gamma #VALUE!
CFO #VALUE!
COO #VALUE!
VP Admin #VALUE!
CIO #VALUE!
VP Sales #VALUE!
VP Services #VALUE!
VP Biz Dev #VALUE!
 $2,500,000.00 0.38 0.38
$100,000.00 0.02
$2,500,000.00 0.38 0.38
$31,250.00 0
$1,500,000.00 0.23 0.23
$6,631,250.00 $6,500,000.00

Options 3,730,000

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
Total Common
Name Common Stock Options Price/Share Agg Exercise Price Net Return
Alpha 2,500,000 275,000 $0.380 $104,500.00 #VALUE!
Beta 2,000,000 275,000 $0.380 $104,500.00 #VALUE!
Gamma 1,000,000 50,000 $0.380 $19,000.00 #VALUE!
CFO 75,000 60,000 $0.150 $9,000.00 #VALUE!
10,000 $0.175 $1,750.00
10,000 $0.300 $3,000.00
25,000 $0.380 $9,500.00
COO 335,000 $0.380 $127,300.00 #VALUE!
VP Admin 450,000 $0.380 $171,000.00 #VALUE!
CIO 750,000 20,000 $0.380 $7,600.00 #VALUE!
VP Sales 100,000 $0.100 $10,000.00 #VALUE!
50,000 $0.175 $8,750.00
40,000 $0.380 $15,200.00
VP Services 600,000 30,000 $0.380 $11,400.00 #VALUE!
VP Biz Dev 400,000 40,000 $0.380 $15,200.00 #VALUE!

This analysis assumes that all of management's options will be vested and exercised as of the transaction date