Number of shares exchanged
-Value of exchanged shares
$ -Value of Exchange Fund LP interest issued to exchanger
$ -Taxes
$ -Brokerage commissions
$ -Exchange Fund capital account issued to exchanger
$ -Gross loan proceeds *
$ -Less first year interest
$ -Less loan origination fee
$ -Less options exercise price
$ -Less estimated tax on disqualifying disposition of ISO
$ -Net after-tax cash received from loan
$ -Potential value of Exchange Fund Interest after 7 years
$ -Less Exchange Loan repayment
$ -Less taxes owed due to fund interest redemption to payoff loan
$ -Potential net value of Exchange Fund distribution
$ -TOTAL POTENTIAL AFTER-TAX PROCEEDS
$ -
* The value of the shares you entered is below the required minimum transaction value to be eligible for an Exchange Loan
The above calculations are based on the following assumptions:
(i) Federal and state tax rate for capital gains is , (ii) holding period for Exchange Fund limited partnership interest is years (you may redeem earlier than years but may then be taxed on the final Exchange Fund distribution), (iii) at end of holding period, the limited partnership interest is redeemed to repay loan and taxes arising from the redemption, (iv) the remaining limited partnership interest is then distributed in the form of Exchange Fund portfolio securities, and (v) the average return on the Exchange Fund net of all fees is 12.5% . The assumed 12.5% average return on the Exchange Fund is hypothetical. Hypothetical performance results have inherent limitations. No representation or guarantee is being made that the Exchange Fund will achieve any particular results. There are frequently differences between hypothetical fund results and the actual results subsequently achieved. The assumed average return on the fund is not necessarily indicative of future performance.