1. To incentivize our employees, we are considering issuing them employee equity. The average employee would be issued stock options to purchase 800 shares at our current stock price of $210 per share. We are hopeful that the Smoothie business will catapult us to $230 per share in the future but recognize the risks. If an employee exercises the options at $210 per share, how much would the employee make before taxes? 2. We may instead use restricted stock in issuing them employee equity. The average employee would be issued 100 restricted shares at our current stock price of $210 per share. We are hopeful that the Smoothie business will catapult us to $230 per share or more in the future but recognize the risks. If an employee sells the shares at $210 per share, how much would the employee make before taxes? 3. Comment in 1-2 sentences on whether you would recommend we use Restricted Stock or Options to incentivize our new Smoothie Chief including why you recommend this approach.