Forward agreement
Trade part of the future upside for capital relief today without giving up the whole position.
Buying time when upside still matters more than max immediate liquidity.
You ease the near-term cash pressure, but you pre-sell a chunk of the future gain.
What this vehicle does as the share price changes
Modeled assumptions
- Uses the potential amt reserve midpoint for today's exercise decision.
- Retained upside assumes a 37.1% modeled exit tax on appreciation above today's FMV.
- Models 30% of current after-tax spread paid up front.
- Employee retains 68% of modeled future spread.