Explain the calculation of the Earnest target,  Present Value of Earnest Discounted at 10%, and Dollar closing.

 

Exhibit 1 Printicomm's Earnout Proposal Earnout Period, in Years Sales Sales Growth Operating Income Profit Margin Earnout Target Annual Earnout Value (You get) Present Value of the Earnout, Discounted at Dollars at Closing Valuation of Proposed Total Payment Earnout Ratio Earnout Period, in Years Sales Sales Growth Operating Income Profit Margin Earnout Target Annual Earnout Value (You get) Present Value of the Earnout, Discounted at Dollars at Closing Valuation of Proposed Total Payment Earnout Ratio 10% 3 10% Year 1 $28,140 $ 32,361 20.00% $ 2,814 $ 10.0% $ 3,527 $ 20,000 $ 23,527 15% Year 1 Year 2 $2,500 $ 3,000 $3,000 $3,500 $3,500 314 $ 560 $ 1,349 $ 1,241 $ 1,478 $ $ 3,005 $ 28,000 Year 3 $ 31,005 10% $ 36,244 $ 39,506 $ 41,481 15.00% 12.00% 9.00% 5.00% 3,560 $ 4,349 $4,741 $ 4,978 11.0% 12.0% 12.0% 12.0% Year 2 $ 28,140 $32,361 $ 36,244 20.00% 15.00% 12.00% $ 2,814 $ 3,560 $ 4,349 10.0% 12.0% 11.0% Year 3 $2,000 $2,500 $2,500 $ 814 $1,060 $ 1,849 Year 4 Year 5