GRAT vs. Sale to Grantor Trust

Transcription

1 GRAT vs. Sale to Grantor Trust An Illustration Comparing the Use of a Grantor Retained Annuity Trust with an Installment Sale to a Grantor Trust AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Estate Freeze Planning Technique Comparison for ShopRight, Inc. 1

2 Disclaimer This financial plan is designed to provide educational and/or general information and is not intended to provide specific legal, accounting and/or tax advice. Any comparisons and projections including expected rates of return are presented for purposes of illustration only. Nevertheless, we believe that the comparisons as well as the other projections shown provide an important and valid basis for consideration when planning for your financial future. IMPORTANT: The projections or other information generated by this financial plan regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results herein may vary with each use of the software tool(s) used to generate this financial plan and over time. The financial plan may contain ideas for your consideration concerning aspects of your life such as tax, retirement and estate planning, but these are not presented as, and must not be taken for, legal or tax advice. It is your responsibility to determine if, and how, the suggestions contained in the financial plan should be implemented or otherwise followed. You must carefully consider all relevant factors in making these types of decisions. For specific advice on these aspects of your overall financial plan, you should consult your professional tax and legal advisors. The report that follows is based upon: - information and assumptions that you have provided or reviewed; - current tax laws; - appropriate financial planning concepts; - historic asset class characteristics; - additional assumptions and information discussed with your advisor. The outcome of the analysis will be dependent to a significant extent upon the information and the reasonableness of the planning assumptions. It is your responsibility to provide accurate and complete information. Please contact your advisor with any changes to your information and/or planning assumptions. Inaccurate information and/or unreasonable planning assumptions can materially impact the results of this financial plan. The simulation of returns at the individual asset, account and/or portfolio level drives the investment projections and proposed financial plan. In all cases investment projections are not to be considered definitive estimates of how the individual assets you own now or in the future will perform. Therefore, it is important that you recognize that the comparisons shown may include comparisons of two asset allocation models the asset allocation of your current portfolio and the asset allocation projected in our proposed plan and not comparisons of the individual securities you own. Model comparisons and the projected rates of return are based on past performance of the relevant asset classes. Past performance is not a guarantee of future results. No future rate of return can be predicted with certainty. The report that follows does not make specific investment recommendations or analyze particular securities. Rather, the report typically contains a proposed asset allocation model based upon your stated risk tolerance, age, current asset allocation and value of your assets. The asset allocation models we use are continuously re-evaluated and are periodically changed as a result. We are under no obligation to revise any financial planning report already prepared if an allocation model is changed after it is issued to you. Actual results are influenced by events that are both within and outside of your control. The rates actually returned by asset classes will differ from our projections. The rates actually returned by any allocation model noted within the financial plan will likely differ from those returned by any individual portfolio of securities constructed to follow a specific allocation model. Any rate of return shown or used in the financial plan is not intended to predict nor guarantee the actual results of an investment product. 2

3 Disclaimer the actual results of an investment product. This financial plan is designed to provide educational and/or general information and is not intended to provide specific legal, accounting and/or tax advice. IMPORTANT: Investments in stocks, bonds, mutual funds, and other securities are not bank products, are not FDIC insured, and may be subject to loss of principal. We have read and understand the above information and disclosures. We understand the basis upon which the report that follows was prepared. We recognize the nature of the asset allocation comparisons and estimated returns as illustrations only. We acknowledge that the report may contain a recommendation for adjusting the asset allocation of our current investment portfolio(s), but it does not provide any guaranteed rates of return, advice on particular securities or any specific legal, tax or accounting advice. Customer Signature 3

4 GRAT vs. Sale to Grantor Trust - Estate Freeze Planning Technique Comparison for ShopRight, Inc. Summary Jack & Jill Flash Sale to Grantor In 2023 Baseline GRAT Rolling GRATs Trust Taxable gift NA ,000 Value of trust at the end of the GRAT or note term NA 3,575,109 4,271,782 9,623,462 Grantor's accumulations/-estate depletion 13,209,286 7,859,319 6,896,710 2,563,210 Total transferable value in ,209,286 13,209,287 13,209,278 13,209,285 Estate taxes or tax savings -3,906,708-2,422,804-2,104,703-1,155,284 Deferred capital gains and Medicare taxes 0-913,460-1,006,656-1,917,224 Net to heirs 9,302,578 9,873,023 10,097,919 10,136,777 Planning advantage/-disadvantage over baseline 570, , ,200 Present value of 3.0% 424, , ,723 Wealth Transfer Comparison in $Thousands Sale to Grantor Trust Rolling GRATs GRAT Baseline $8,800 $9,000 $9,200 $9,400 $9,600 $9,800 $10,000 $10,200 NOTE: Please refer to the accompanying reports illustrating the GRAT and installment sale to grantor trust planning techniques for the detailed schedules, charts and planning assumptions used for this comparative analysis. 4

5 GRAT vs. Sale to Grantor Trust - Estate Freeze Planning Technique Comparison for ShopRight, Inc. Annual Net to Heirs Comparison Jack & Jill Flash Wealth Transfer Comparison $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Baseline GRAT Rolling GRATs Sale to Grantor Trust The chart above compares a GRAT and an installment sale to a grantor trust to the baseline over the planning horizon. 5

6 Grantor Retained Annuity Trust An Illustration of the Use of a Grantor Retained Annuity Trust AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Transfer $5MM ShopRight, Inc. to 6-Year GRAT or Five Rolling GRATs 1

7 Summary Jack & Jill Flash 6-Year Five Rolling In 2023 Baseline GRAT 2-Year GRATs Taxable gift NA Value of GRATs at the end of 6 years in 2019 NA 3,575,109 4,271,782 Grantor's GRAT-related accumulations/-estate depletion 13,209,286 7,859,319 6,896,710 Total transferable value in ,209,286 13,209,287 13,209,278 Estate taxes or tax savings -3,906,708-2,422,804-2,104,703 Deferred capital gains and Medicare taxes 0-913,460-1,006,656 Net to heirs 9,302,578 9,873,023 10,097,919 Planning advantage/-disadvantage over baseline 570, ,341 Present value of 3.0% 424, ,808 Wealth Transfer Comparison in $Thousands Rolling GRATs GRAT Baseline $8,800 $9,000 $9,200 $9,400 $9,600 $9,800 $10,000 $10,200 2

8 Actuarial Summary Jack & Jill Flash Valuation of Split Interests for Gift Tax Purposes 0.0% 100.0% Retained Interest Transferred Interest Relevant Actuarial Calculations & Applicable Tests Retained interest factor % Transferred interest factor % Annuity exhaustion test of the Sec Regs & Rev. Rul Passed Taxable gift 23 Retained Interest Annuity Rolling GRATs Factor Exhaustion Test Taxable Gift Rolling GRAT % Passed 10 Rolling GRAT % Passed 5 Rolling GRAT % Passed 8 Rolling GRAT % Passed 7 Rolling GRAT % Passed 7 3

9 Assumptions Jack & Jill Flash Personal Jack Jill Age Calculated life expectancy Life expectancy override Year of death Planning Illustration Transfer date 01-Jan-2014 Planning term 10 years Transfer of Property Transferor Jack Gift-splitting election No Trust Assumptions Type of trust Fixed term Annuity is valued as an interest for a term certain Yes Trust term 6 years Rolling GRATs trust term 2 years Number of GRATs in rolling GRAT sequence 5 Annuity Valuation Single GRAT Rolling GRATs Method for determining annuity payments Target remainder Target remainder GRAT annuity factor First-year annuity payout rate % % Annual increase in annuity rate 0.0% 0.0% Annuity payment frequency Annual Annual Contingent spousal annuity No No Section 7520 rate 3.0% 2.2% Section 7520 mortality table 2000CM 2000CM Estate & Gift Tax Jack Jill DSUE amount inherited 0 0 Post-1976 adjusted taxable gifts 0 0 Unified credit used 0 0 4

10 Assumptions Jack & Jill Flash Property Transferred Undiscounted value of property 5,000,000 Basis of property 1,500,000 Type of property transferred S corporation stock Gift tax valuation discount 35.0% Estate tax valuation discount 35.0% Apply estate tax valuation discount in baseline scenario Yes Sale of GRAT Property GRAT sale during trust term Grantor tax reimbursement No NA Tax Rates Jack Transferee Federal tax bracket See schedule See schedule Federal capital gains tax rate See schedule See schedule State income tax rate 5.0% 5.0% Estate tax rate See schedule NA Investment Rates S corp Other Current cash yield 5.0% 2.0% Inc/-dec rate of cash yield 0.0% NA Tax yield multiple 100.0% NA Qualified dividend percentage 100.0% 100.0% Base growth rate 7.0% 6.0% Percentage of taxable income and realized gains subject to Medicare surtax 0.0% 100.0% Present value discount rate NA 3.0% Other Property distributions from the trust are grossed up for valuation discounts Yes Distribute corpus to grantor trust after GRAT term No Summary results are shown net of deferred capital gains and Medicare taxes Yes Inflation rate 3.0% 5

11 Annual Net to Heirs Comparison Jack & Jill Flash Wealth Transfer Comparison $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Baseline GRAT Rolling GRATs The chart above compares a GRAT and a series of rolling GRATs to the baseline over the planning horizon. 6

12 Annual Net to Heirs Comparison Jack & Jill Flash Net to Heirs Comparison Present Value Present Value Year Projected GRAT Projected Rolling GRATs Ending GRAT Adv/-Disadv Rolling GRATs Adv/-Disadv In Baseline GRAT Rolling GRATs Adv/-Disadv 3.0% Adv/-Disadv 3.0% ,074,500 4,074,500 4,074, ,481,979 4,481,979 4,575, ,166 87, ,925,141 4,925,141 5,076, , , ,406,903 5,406,903 5,644, , , ,930,412 5,930,412 6,256, , , ,499,058 6,770,677 6,931, , , , , ,116,501 7,450,684 7,625, , , , , ,786,681 8,191,033 8,381, , , , , ,513,847 8,996,692 9,203, , , , , ,302,578 9,873,023 10,097, , , , ,808 7

13 Grantor Retained Annuity Trust Illustration Jack & Jill Flash Assumes a Level Annuity and No Sale of Transferred Property during the GRAT Term Jack S Corp Stock $5,000,000 Taxable Gift $23 6-Year GRAT $3,250,000 Discounted Value Economic PV of Annuity $3,164,339 Value of GRAT in 2019 $3,575,109 Cap Gains & Medicare Taxes $913,460 Net to Heirs in 2023 $9,873,023 Assuming the transferred property is sold following Jack's death, the use of a GRAT in this manner is projected to produce a net after-tax benefit of $570,445, or $424,465 in today's dollars. If, however, the property is not sold, the projected benefit of a GRAT would be 1,483,905, or 1,104,165 in today's dollars. 8

14 Rolling GRATs Illustration Jack & Jill Flash Assumes a Level Annuity, Five Rolling 2-Year GRATs and No Sale of Transferred Property during the GRAT Term Annuity Payments $3,357,602 Jack S Corp Stock $5,000,000 2-Year GRAT $3,250,000 Discounted Value Annuity Payments $1,754,686 2-Year GRAT $1,678,801 Discounted Value Annuity Payments $2,671,686 2-Year GRAT $2,556,144 Discounted Value Annuity Payments $2,313,226 2-Year GRAT $2,213,185 Discounted Value Annuity Payments $2,605,120 2-Year GRAT $2,492,456 Discounted Value GRAT Value in 2015 $1,032,153 GRAT Value in 2016 $470,112 GRAT Value in 2017 $697,272 GRAT Value in 2018 $562,418 GRAT Value in 2019 $610,920 Cap Gains & Medicare Taxes $1,006,656 Net to Heirs in 2023 $10,097,919 9

15 Grantor Retained Annuity Trust Sensitivity Analyses AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Transfer $5MM ShopRight, Inc. to 6-Year GRAT or Five Rolling GRATs 10

16 Sensitivity Analysis - Growth Rates Jack & Jill Flash 2023 Net to Heirs Projected Adv/-Disadv PV of Adv/-Disadv Growth 6-Year Five Rolling 6-Year Five Rolling 6-Year Five Rolling GRAT 2-Year GRATs GRAT 2-Year GRATs GRAT 2-Year GRATs 0.0% 5,137,908 5,180, , , , , % 6,241,343 6,332, , , , , % 7,542,674 7,687, , , , , % 9,074,685 9,280, , , , , % 10,874,626 11,149, , , , , % 12,984,755 13,338, ,038 1,149, , ,482 Planning Advantage/-Disadvantage over Baseline in Today's Dollars $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Pretax Growth Rates GRAT Rolling GRATs The illustration above shows the impact of pretax growth rate assumptions on the projected results. The graph shows the advantages or disadvantages of a single GRAT, as well as a series of rolling GRATs, as compared to the baseline scenario, in today's dollars. Note that all other assumptions are the same as those listed on the Assumptions schedule. 11

17 Sensitivity Analysis - GRAT Term Jack & Jill Flash Varies GRAT Summary Comparison to Baseline GRAT Term Projected PV of Annuity Net to Heirs Adv/-Disadv Adv/-Disadv 2 1,678,801 9,614, , , ,131,335 9,698, , , ,675 9,770, , , ,524 9,829, , , ,129 9,873, , , ,032 9,899, , ,010 Planning Advantage/-Disadvantage over Baseline in Today's Dollars $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ GRAT Term The illustration above shows the impact of the GRAT term (in years) on the projected results. The graph shows the advantages or disadvantages of a GRAT, as compared to the baseline scenario, in today's dollars. All other assumptions are the same as those listed on the Assumptions schedule. 12

18 Grantor Retained Annuity Trust Supporting Schedules for BASELINE SCENARIO AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Transfer $5MM ShopRight, Inc. to 6-Year GRAT or Five Rolling GRATs 13

19 Baseline Illustration Jack & Jill Flash Part 1 of 3 S Corp Stock Year Beginning Ending Gross Estate Ending Property Cash Unrealized Property Value In Value Yield Growth Gains Value 65.0% ,000, , ,000 3,850,000 5,350,000 3,477, ,350, , ,500 4,224,500 5,724,500 3,720, ,724, , ,715 4,625,215 6,125,215 3,981, ,125, , ,765 5,053,980 6,553,980 4,260, ,553, , ,779 5,512,759 7,012,759 4,558, ,012, , ,893 6,003,652 7,503,652 4,877, ,503, , ,256 6,528,907 8,028,908 5,218, ,028, , ,024 7,090,931 8,590,932 5,584, ,590, , ,365 7,692,296 9,192,297 5,974, ,192, , ,461 8,335,757 9,835,758 6,393,243 14

20 Baseline Illustration Jack & Jill Flash Part 2 of 3 Investments Qualified Year Beginning Current Cash from Dividends + Income Ending Ending Investment Income Growth S Corp Ordinary & Medicare Capital Gains Investment In Balance 2.0% 6.0% Stock Income Taxes Taxes Balance , , , , ,500 3,850 11, , , , , ,748 8,195 24, , ,420 1,246 73, , ,136 13,083 39, , ,343 1,989 82, , ,263 18,565 55, , ,264 2,822 92,451 1,234, ,234,950 24,699 74, , ,337 3, ,370 1,577, ,577,260 31,545 94, , ,728 4, ,314 1,958, ,958,515 39, , , ,616 5, ,369 2,382, ,382,319 47, , , ,193 7, ,630 2,852, ,852,578 57, , , ,666 8, ,199 3,373,528 15

21 Baseline Illustration Jack & Jill Flash Part 3 of 3 Net to Heirs Year Gross Ending Estate Estate Net In Value Taxes to Heirs ,670,000 1,468,000 4,074, ,130,673 1,652,269 4,481, ,635,526 1,854,210 4,925, ,188,350 2,075,340 5,406, ,793,243 2,317,297 5,930, ,454,634 2,581,854 6,499, ,177,305 2,870,922 7,116, ,966,425 3,186,570 7,786, ,827,571 3,531,028 8,513, ,766,771 3,906,708 9,302,578 16

22 Grantor Retained Annuity Trust Supporting Schedules for GRANTOR RETAINED ANNUITY TRUST SCENARIO AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Transfer $5MM ShopRight, Inc. to 6-Year GRAT or Five Rolling GRATs 17

23 GRAT Illustration - Wealth Transfer Summary Jack & Jill Flash Part 1 of 2 GRAT Property & Investments Grantor GRAT-Derived Accumulations Year GRAT Gross Estate GRAT Grantor Gross Estate Grantor Ending S Corp Value GRAT Gross Estate Unrealized S Corp Value Investments/ In Stock 65.0% Investments Value Gains Stock 65.0% -Defunding ,835,955 3,143, ,480, , , , ,647,809 3,021, ,429,936 1,076, , , ,432,020 2,880, ,346,665 1,693,195 1,100, , ,184,526 2,719, ,226,820 2,369,454 1,540, , ,900,670 2,535, ,066,333 3,112,089 2,022,858 1,234, ,575, ,860,435 3,928,543 2,553,553 1,577, ,825, , ,110,693 4,203,541 2,732,302 1,820, ,093, , ,378,469 4,497,789 2,923,563 2,089, ,379, , ,664,989 4,812,634 3,128,212 2,384, ,686, , ,971,565 5,149,518 3,347,187 2,709,801 18

24 GRAT Illustration - Wealth Transfer Summary Jack & Jill Flash Part 2 of 2 Net to Heirs GRAT Value Capital Gains Year +/- Grantor GRAT & Medicare Ending Investments/ Gross Taxable Estate Estate Taxes on Net In -Defunding Estate Gift Tax Base Taxes Trust Property to Heirs ,542,500 3,670, ,670,000 1,468, ,074, ,134,248 4,130, ,130,673 1,652, ,481, ,779,351 4,635, ,635,526 1,854, ,925, ,482,243 5,188, ,188,350 2,075, ,406, ,247,709 5,793, ,793,243 2,317, ,930, ,080,912 4,130, ,130,836 1,652, ,900 6,770, ,987,423 4,553, ,553,198 1,821, ,459 7,450, ,973,251 5,012, ,012,926 2,005, ,048 8,191, ,044,876 5,513, ,513,092 2,205, ,947 8,996, ,209,287 6,056, ,057,011 2,422, ,460 9,873,023 19

25 GRAT Illustration - Annuity Payments Jack & Jill Flash Required Annuity Payment Source of Annuity Payment Undiscounted Present Value Year Cash from GRAT GRAT Value of of Annuity Ending Annuity Annuity S Corp Investment Property Property Payments In Rate Payment Stock Distribution Distribution Distribution 3.0% % 584, , , , , % 584, , , , , % 584, , , , , % 584, , , , , % 584, , , , , % 584, , , , ,199 20

26 GRAT Illustration - Trust Flows Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Unrealized Ending Distribution Ending Ending Property Cash Gains Unrealized to Satisfy Property In Value Yield Growth Distributed Gains Annuity Value ,000, , , ,920 3,480, ,045 4,835, ,835, , , ,661 3,429, ,663 4,647, ,647, , , ,618 3,346, ,136 4,432, ,432, , , ,087 3,226, ,735 4,184, ,184, , , ,404 3,066, ,773 3,900, ,900, , , ,945 2,860, ,608 3,575, ,575, , , ,110, ,825, ,825, , , ,378, ,093, ,093, , , ,664, ,379, ,379, , , ,971, ,686,239 21

27 GRAT Illustration - Trust Flows Jack & Jill Flash Part 2 of 2 Investments Qualified Year Beginning Current Cash from Distribution Dividends + Income Ending Total Ending Investment Income Growth S Corp to Satisfy Ordinary & Medicare Capital Gains Investment Ending In Balance 2.0% 6.0% Stock Annuity Income Taxes Taxes Balance GRAT Value , , , ,835, , , , ,647, , , , ,432, , , , ,184, , , , ,900, , , , ,575, , , , ,642 3,963, ,642 2,753 8, , , , ,979 4,386, ,979 5,860 17, , , , ,722 4,847, ,722 9,354 28, , ,338 1,422 58, ,729 5,349,968 22

28 GRAT Illustration - Grantor Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Gains GRAT Ending Ending Property Cash Transferred Unrealized Annuity Property In Value Yield Growth In Gains Payment Value , , , , ,045 25,702 35, , , ,663 1,076, ,076,691 53,835 75, ,618 1,278, ,136 1,693, ,693,195 84, , ,087 1,827, ,735 2,369, ,369, , , ,404 2,446, ,773 3,112, ,112, , , ,945 3,143, ,608 3,928, ,928, , , ,418, ,203, ,203, , , ,712, ,497, ,497, , , ,027, ,812, ,812, , , ,364, ,149,518 23

29 GRAT Illustration - Grantor Jack & Jill Flash Part 2 of 2 Investments and/or Estate Defunding Qualified Year Beginning Current Cash from GRAT Dividends + Income Ending Total Ending Investment Income Growth S Corp Annuity Ordinary & Medicare Capital Gains Investment Combined In Balance 2.0% 6.0% Stock Payment Income Taxes Taxes Balance Value , , , , , ,500 3,850 11,550 25, , , , ,748 1,486, ,748 8,195 24,585 53, , ,420 1,246 73, ,136 2,347, ,136 13,083 39,248 84, , ,343 1,989 82, ,263 3,297, ,263 18,565 55, , , ,264 2,822 92,451 1,234,950 4,347, ,234,950 24,699 74, , , ,337 3, ,370 1,577,260 5,505, ,577,260 31,545 94, , ,972 4,795 74,200 1,820,873 6,024, ,820,873 36, , , ,595 5,535 81,845 2,089,340 6,587, ,089,340 41, , , ,676 6,352 90,168 2,384,857 7,197, ,384,857 47, , , ,329 7,250 99,227 2,709,801 7,859,319 24

30 GRAT Illustration - Basis of Transferred Property Jack & Jill Flash Part 1 of 2 Total Adjusted Basis of Property Year Net Ending Beginning Basis Ending Beginning Ending In Basis Adjustments Basis Value Value ,500, ,500,000 5,000,000 5,350, ,500, ,500,000 5,350,000 5,724, ,500, ,500,000 5,724,500 6,125, ,500, ,500,000 6,125,215 6,553, ,500, ,500,000 6,553,980 7,012, ,500, ,500,000 7,012,759 7,503, ,500, ,500,000 7,503,652 8,028, ,500, ,500,000 8,028,908 8,590, ,500, ,500,000 8,590,932 9,192, ,500, ,500,000 9,192,297 9,835,758 25

31 GRAT Illustration - Basis of Transferred Property Jack & Jill Flash Part 2 of 2 Adjusted Basis & Unrealized Gains Apportioned to GRAT Adjusted Basis & Unrealized Gains Apportioned to Grantor Year Ending Ending Ending Beginning Beginning Ending Ending Unrealized Beginning Beginning Ending Ending Unrealized In Value Basis Value Basis Gains Value Basis Value Basis Gains ,000,000 1,500,000 4,835,955 1,355,875 3,480, , , , ,835,955 1,355,875 4,647,809 1,217,873 3,429, , ,125 1,076, , , ,647,809 1,217,873 4,432,020 1,085,355 3,346,665 1,076, ,127 1,693, ,645 1,278, ,432,020 1,085,355 4,184, ,706 3,226,820 1,693, ,645 2,369, ,294 1,827, ,184, ,706 3,900, ,337 3,066,333 2,369, ,294 3,112, ,663 2,446, ,900, ,337 3,575, ,674 2,860,435 3,112, ,663 3,928, ,326 3,143, ,575, ,674 3,825, ,674 3,110,693 3,928, ,326 4,203, ,326 3,418, ,825, ,674 4,093, ,674 3,378,469 4,203, ,326 4,497, ,326 3,712, ,093, ,674 4,379, ,674 3,664,989 4,497, ,326 4,812, ,326 4,027, ,379, ,674 4,686, ,674 3,971,565 4,812, ,326 5,149, ,326 4,364,192 26

32 Grantor Retained Annuity Trust Supporting Schedules for ROLLING GRATs SCENARIO AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Transfer $5MM ShopRight, Inc. to 6-Year GRAT or Five Rolling GRATs 27

33 Rolling GRATs Illustration - Wealth Transfer Summary Jack & Jill Flash Part 1 of 2 GRAT Property & Investments Grantor GRAT-Derived Accumulations Year GRAT Gross Estate GRAT Grantor Gross Estate Grantor Ending S Corp Value GRAT Gross Estate Unrealized S Corp Value Investments/ In Stock 65.0% Investments Value Gains Stock 65.0% -Defunding ,151,845 2,048, ,268,150 2,198,155 1,428, , ,618,894 1,031, ,932,661 3,105,606 2,018, , ,974,341 1,559,886 39, ,001,067 2,150,874 1,398, , ,423,835 1,327, , ,411,358 2,130,145 1,384, , ,390,417 1,481, , ,237,429 1,622,341 1,054,522 1,034, ,939, , ,152,274 3,563,788 2,316,462 1,245, ,215, , ,428,063 3,813,253 2,478,614 1,455, ,510, , ,723,158 4,080,180 2,652,117 1,687, ,826, , ,038,911 4,365,793 2,837,765 1,943, ,164, ,148, ,376,766 4,671,398 3,036,409 2,225,312 28

34 Rolling GRATs Illustration - Wealth Transfer Summary Jack & Jill Flash Part 2 of 2 Net to Heirs GRAT Value Capital Gains Year +/- Grantor GRAT & Medicare Ending Investments/ Gross Taxable Estate Estate Taxes on Net In -Defunding Estate Gift Tax Base Taxes Trust Property to Heirs ,542,500 3,670, ,670,000 1,468, ,074, ,134,248 3,459, ,459,784 1,383, ,190 4,575, ,779,352 3,572, ,572,368 1,428, ,455 5,076, ,482,244 3,537, ,537,387 1,414, ,473 5,644, ,247,709 3,570, ,570,614 1,428, ,510 6,256, ,080,910 3,561, ,561,839 1,424, ,023 6,931, ,987,419 3,934, ,934,124 1,573, ,454 7,625, ,973,243 4,339, ,339,669 1,735, ,326 8,381, ,044,868 4,781, ,781,224 1,912, ,949 9,203, ,209,278 5,261, ,261,758 2,104,703 1,006,656 10,097,919 29

35 Rolling GRATs Summary Illustration - Annuity Payments Jack & Jill Flash Source of Annuity Payment Undiscounted Present Value Year Required Cash from GRAT GRAT Value of of Annuity Ending Annuity S Corp Investment Property Property Payments In Payment Stock Distribution Distribution Distribution 3.0% ,678, , ,428,801 2,198,155 1,629, ,556, , ,000 2,018,644 3,105,606 2,409, ,213, , ,500 1,398,069 2,150,874 2,025, ,492, , ,327 1,384,594 2,130,145 2,214, ,459, ,599 1,196,053 1,054,521 1,622,341 2,121, ,302, , ,188,124 1,827,883 1,090,873 30

36 Rolling GRATs Summary Illustration - Trust Flows Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Capital Unrealized Ending Distribution Ending Ending Property Cash Gains Gains Unrealized to Satisfy Property In Value Yield Growth Triggered Distributed Gains Annuity Value ,000, , , ,581,850 2,268,150 2,198,155 3,151, ,350, , , ,291,839 1,932,661 3,105,606 2,618, ,724, , , ,624,148 3,001,067 2,150,874 3,974, ,125, , , ,642,622 3,411,358 2,130,145 4,423, ,553, , , ,275,329 4,237,429 1,622,341 5,390, ,390, , , ,462,484 3,152,274 1,827,883 3,939, ,939, , , ,428, ,215, ,215, , , ,723, ,510, ,510, , , ,038, ,826, ,826, , , ,376, ,164,355 31

37 Rolling GRATs Summary Illustration - Trust Flows Jack & Jill Flash Part 2 of 2 Investments Qualified Year Beginning Cash from Distribution Dividends + Income Ending Total Ending Investment Current S Corp to Satisfy Ordinary & Medicare Capital Gains Investment Ending In Balance Income Growth Stock Annuity Income Taxes Taxes Balance GRAT Value , ,151, ,000 5,000 15, , , ,618, ,500 10,750 32,250 51, , , ,870 39,738 4,014, ,855 17,097 51,291 78, , , , ,684 4,526, ,210,546 24,211 72, ,100 1,196, , , ,842 5,591, ,842 4,017 12, , , , ,919 4,271, ,919 6,638 19, , ,632 1,009 51, ,041 4,718, ,041 10,061 30, , ,843 1,529 57, ,801 5,205, ,801 13,896 41, , ,433 2,112 64, ,153 5,735, ,153 18,183 54, , ,508 2,764 72,233 1,148,213 6,312,568 32

38 Rolling GRATs Summary Illustration - Grantor Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Gains GRAT Ending Ending Property Cash Transferred Unrealized Annuity Property In Value Yield Growth In Gains Payment Value ,581,850 1,581,850 2,198,155 2,198, ,198, ,291,839 2,291,839 3,105,606 3,105, ,105, ,624,148 1,624,148 2,150,874 2,150, ,150, ,642,622 1,642,622 2,130,145 2,130, ,130, ,275,329 1,275,329 1,622,341 1,622, ,622,341 81, ,564 1,462,484 2,851,377 1,827,883 3,563, ,563, , , ,100, ,813, ,813, , , ,367, ,080, ,080, , , ,653, ,365, ,365, , , ,958, ,671,398 33

39 Rolling GRATs Summary Illustration - Grantor Jack & Jill Flash Part 2 of 2 Investments and/or Estate Defunding Qualified Year Beginning Cash from GRAT Dividends + Income Ending Total Ending Investment Current S Corp Annuity Ordinary & Medicare Capital Gains Investment Combined In Balance Income Growth Stock Payment Income Taxes Taxes Balance Value , , , ,500 2,390, ,500-1,150-3, , , , ,748 3,515, ,752-2,555-7, , ,812 1,246 61, ,399 2,765, ,718-4,014-12, ,107, ,823 1,868 63, ,580 2,955, ,282-5,646-16, ,404, ,110 2,510 63,168 1,034,109 2,656, ,034,109 20,682 62,047 81, , ,771 3,145 63,904 1,245,340 4,809, ,245,340 24,907 74, , ,096 3,786 63,898 1,455,473 5,268, ,455,473 29,109 87, , ,772 4,425 70,633 1,687,515 5,767, ,687,515 33, , , ,759 5,130 77,972 1,943,422 6,309, ,943,422 38, , , ,158 5,908 85,966 2,225,312 6,896,710 34

40 Rolling GRATs Summary - Basis of Transferred Property Jack & Jill Flash Part 1 of 2 Total Adjusted Basis of Property Year Basis Basis Other Net Ending Beginning Transferred Transferred Basis Basis Ending Beginning Ending In Basis In Out Adjustments Adjustments Basis Value Value ,500, ,500,000 1,500,000 5,000,000 5,350, ,500, , , ,500,000 5,350,000 5,724, ,500, , , ,500,000 5,724,500 6,125, ,500, , , ,500,000 6,125,215 6,553, ,500, , , ,500,000 6,553,980 7,012, ,500, ,500,000 7,012,758 7,503, ,500, ,500,000 7,503,651 8,028, ,500, ,500,000 8,028,905 8,590, ,500, ,500,000 8,590,927 9,192, ,500, ,500,000 9,192,293 9,835,753 35

41 Rolling GRATs Summary - Basis of Transferred Property Jack & Jill Flash Part 2 of 2 Adjusted Basis & Unrealized Gains Apportioned to GRAT Adjusted Basis & Unrealized Gains Apportioned to Grantor Year Ending Ending Ending Beginning Beginning Ending Ending Unrealized Beginning Beginning Ending Ending Unrealized In Value Basis Value Basis Gains Value Basis Value Basis Gains ,000,000 1,500,000 3,151, ,695 2,268, ,198, ,305 1,581, ,350,000 1,500,000 2,618, ,233 1,932, ,105, ,767 2,291, ,724,500 1,500,000 3,974, ,274 3,001, ,150, ,726 1,624, ,125,215 1,500,000 4,423,835 1,012,477 3,411, ,130, ,523 1,642, ,553,980 1,500,000 5,390,417 1,152,988 4,237, ,622, ,012 1,275, ,390,417 1,152,988 3,939, ,589 3,152,274 1,622, ,012 3,563, ,411 2,851, ,939, ,589 4,215, ,589 3,428,063 3,563, ,411 3,813, ,411 3,100, ,215, ,589 4,510, ,589 3,723,158 3,813, ,411 4,080, ,411 3,367, ,510, ,589 4,826, ,589 4,038,911 4,080, ,411 4,365, ,411 3,653, ,826, ,589 5,164, ,589 4,376,766 4,365, ,411 4,671, ,411 3,958,987 36

42 Rolling GRAT Illustration - Trust 1 Wealth Transfer Summary Jack & Jill Flash Part 1 of 2 GRAT Property & Investments Grantor GRAT-Derived Accumulations Year GRAT Gross Estate GRAT Grantor Gross Estate Grantor Ending S Corp Value GRAT Gross Estate Unrealized S Corp Value Investments/ In Stock 65.0% Investments Value Gains Stock 65.0% -Defunding ,151,845 2,048, ,268,150 2,198,155 1,428, , ,032, ,696 2,340,321 1,521,209 60, ,104, , , , ,181, , , , ,264, , , , ,352, , ,082, , ,447, , ,177, , ,548, , ,278, , ,657, , ,386, , ,773, , ,502, ,110 37

43 Rolling GRAT Illustration - Trust 1 Wealth Transfer Summary Jack & Jill Flash Part 2 of 2 Net to Heirs GRAT Value Capital Gains Year +/- Grantor GRAT & Medicare Ending Investments/ Gross Taxable Estate Estate Taxes on Net In -Defunding Estate Gift Tax Base Taxes Trust Property to Heirs ,542,500 3,670, ,670,000 1,468, ,074, ,432,953 1,581, ,581, , ,190 2,625, ,041, , ,790-41, , , ,157, , ,810-43, , , ,284, , ,182-46, ,614 1,101, ,422, , ,928-48, ,972 1,222, ,573, , ,069-51, ,754 1,354, ,737, , ,628-54, ,061 1,498, ,917, , ,630-57, ,000 1,655, ,112, , ,100-61, ,684 1,827,661 38

44 Rolling GRAT Illustration - Trust 1 Annuity Payments Jack & Jill Flash Required Annuity Payment Source of Annuity Payment Undiscounted Present Value Year Cash from GRAT GRAT Value of of Annuity Ending Annuity Annuity S Corp Investment Property Property Payments In Rate Payment Stock Distribution Distribution Distribution 3.0% % 1,678, , ,428,801 2,198,155 1,629, % 1,678, , ,521,209 2,340,321 1,582, % % % %

45 Rolling GRAT Illustration - Trust 1 Flows Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Capital Unrealized Ending Distribution Ending Ending Property Cash Gains Gains Unrealized to Satisfy Property In Value Yield Growth Triggered Distributed Gains Annuity Value ,000, , , ,581,850 2,268,150 2,198,155 3,151, ,151, , , ,727, ,696 2,340,321 1,032, ,032,153 51,608 72, , ,104, ,104,404 55,220 77, , ,181, ,181,712 59,086 82, , ,264, ,264,432 63,222 88, ,082, ,352, ,352,942 67,647 94, ,177, ,447, ,447,648 72, , ,278, ,548, ,548,983 77, , ,386, ,657, ,657,412 82, , ,502, ,773,431 40

46 Rolling GRAT Illustration - Trust 1 Flows Jack & Jill Flash Part 2 of 2 Investments Qualified Year Beginning Current Cash from Distribution Dividends + Income Ending Total Ending Investment Income Growth S Corp to Satisfy Ordinary & Medicare Capital Gains Investment Ending In Balance 2.0% 6.0% Stock Annuity Income Taxes Taxes Balance GRAT Value , ,151, , ,032, , , ,870 39,738 1,144, , ,384 55, , ,432 84,585 1,266, ,585 1,692 5,075 59, , , ,034 1,399, ,034 2,701 8,102 63, , , ,622 1,544, ,622 3,832 11,497 67, , , ,932 1,702, ,932 5,099 15,296 72, , , ,595 1,874, ,595 6,512 19,536 77, , , ,298 2,061, ,298 8,086 24,258 82, ,957 1,229 26, ,784 2,265,215 41

47 Rolling GRAT Illustration - Trust 1 Grantor Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Gains Gains GRAT Ending Ending Property Transfer to Cash Transferred Transferred Unrealized Annuity Property In Value New GRAT Yield Growth In Out Gains Payment Value ,581, ,581,850 2,198,155 2,198, ,198,155 2,198, ,727,083 1,581,850 1,727,083 2,340,321 2,340, ,340,321 2,340, ,727,

48 Rolling GRAT Illustration - Trust 1 Grantor Jack & Jill Flash Part 2 of 2 Investments and/or Estate Defunding Qualified Year Beginning Current Cash from GRAT Dividends + Income Ending Total Ending Investment Transfer to Income Growth S Corp Annuity Ordinary & Medicare Capital Gains Investment Combined In Balance New GRAT 2.0% 6.0% Stock Payment Income Taxes Taxes Balance Value , , , ,500 2,390, , ,000-1,150-3, , , ,188 60,479 2,400, , ,592-1,942-5, , , , , , ,056-6, , , , , , ,176-6, , , , , , ,304-6, , , , , , ,439-7, , , , , , ,582-7, , , , , , ,733-8, , , , , , ,893-8, , , , ,110 43

49 Rolling GRAT Illustration - Trust 1 Basis of Transferred Property Jack & Jill Flash Part 1 of 2 Total Adjusted Basis of Property Year Basis Basis Other Net Ending Beginning Transferred Transferred Basis Basis Ending Beginning Ending In Basis In Out Adjustments Adjustments Basis Value Value ,500, ,500,000 1,500,000 5,000,000 5,350, ,500, , , ,695 3,151,845 3,372, , , , ,457 1,032,153 1,104, , ,457 1,104,404 1,181, , ,457 1,181,712 1,264, , ,457 1,264,432 1,352, , ,457 1,352,942 1,447, , ,457 1,447,648 1,548, , ,457 1,548,983 1,657, , ,457 1,657,412 1,773,431 44

50 Rolling GRAT Illustration - Trust 1 Basis of Transferred Property Jack & Jill Flash Part 2 of 2 Adjusted Basis & Unrealized Gains Apportioned to GRAT Adjusted Basis & Unrealized Gains Apportioned to Grantor Year Ending Ending Ending Beginning Beginning Ending Ending Unrealized Beginning Beginning Ending Ending Unrealized In Value Basis Value Basis Gains Value Basis Value Basis Gains ,000,000 1,500,000 3,151, ,695 2,268, ,198, ,305 1,581, ,151, ,695 1,032, , , ,340, ,238 1,727, ,032, ,457 1,104, , , ,104, ,457 1,181, , , ,181, ,457 1,264, , , ,264, ,457 1,352, ,457 1,082, ,352, ,457 1,447, ,457 1,177, ,447, ,457 1,548, ,457 1,278, ,548, ,457 1,657, ,457 1,386, ,657, ,457 1,773, ,457 1,502,

51 Rolling GRAT Illustration - Trust 2 Wealth Transfer Summary Jack & Jill Flash Part 1 of 2 GRAT Property & Investments Grantor GRAT-Derived Accumulations Year GRAT Gross Estate GRAT Grantor Gross Estate Grantor Ending S Corp Value GRAT Gross Estate Unrealized S Corp Value Investments/ In Stock 65.0% Investments Value Gains Stock 65.0% -Defunding ,586,741 1,031, ,170, , , , , ,987 1,227, ,006 28, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,484 46

52 Rolling GRAT Illustration - Trust 2 Wealth Transfer Summary Jack & Jill Flash Part 2 of 2 Net to Heirs GRAT Value Capital Gains Year +/- Grantor GRAT & Medicare Ending Investments/ Gross Taxable Estate Estate Taxes on Net In -Defunding Estate Gift Tax Base Taxes Trust Property to Heirs ,701,295 1,878, ,878, , ,950, ,726, , , ,667 81,647 1,314, ,471-53, ,643-21,457 89, , ,966-56, ,785-22,714 97, , ,294-60, ,111-24, , , ,861-63, ,631-25, , , ,104-67, ,358-26, , , ,499-71, ,303-28, , , ,555-75, ,479-30, , ,599 47

53 Rolling GRAT Illustration - Trust 2 Annuity Payments Jack & Jill Flash Required Annuity Payment Source of Annuity Payment Undiscounted Present Value Year Cash from GRAT GRAT Value of of Annuity Ending Annuity Annuity S Corp Investment Property Property Payments In Rate Payment Stock Distribution Distribution Distribution 3.0% % % 877, , , , , , % 877,343 79, ,006 1,227, , % % %

54 Rolling GRAT Illustration - Trust 2 Flows Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Capital Unrealized Ending Distribution Ending Ending Property Cash Gains Gains Unrealized to Satisfy Property In Value Yield Growth Triggered Distributed Gains Annuity Value ,198, , , ,756 1,170, ,285 1,586, ,586,741 79, , , ,987 1,227, , ,112 23,506 32, , , ,020 25,151 35, , , ,231 26,912 37, , , ,907 28,795 40, , , ,220 30,811 43, , , ,355 32,968 46, , , ,510 35,276 49, , ,896 49

55 Rolling GRAT Illustration - Trust 2 Flows Jack & Jill Flash Part 2 of 2 Investments Qualified Year Beginning Current Cash from Distribution Dividends + Income Ending Total Ending Investment Income Growth S Corp to Satisfy Ordinary & Medicare Capital Gains Investment Ending In Balance 2.0% 6.0% Stock Annuity Income Taxes Taxes Balance GRAT Value ,000 5,000 15, , , ,586, , , , , ,406 18, , , ,086 25, , ,118 38, , , ,312 26, , ,899 61, , ,503 1,230 3,690 28, , ,755 87, , ,277 1,746 5,237 30, , , , , ,112 2,322 6,967 32, , , , , ,297 2,966 8,898 35, , , , ,039 50

56 Rolling GRAT Illustration - Trust 2 Grantor Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Gains Gains GRAT Ending Ending Property Transfer to Cash Transferred Transferred Unrealized Annuity Property In Value New GRAT Yield Growth In Out Gains Payment Value , , , , , , , , ,050 1,227,701 1,227, ,227,701 1,227, ,

57 Rolling GRAT Illustration - Trust 2 Grantor Jack & Jill Flash Part 2 of 2 Investments and/or Estate Defunding Qualified Year Beginning Current Cash from GRAT Dividends + Income Ending Total Ending Investment Transfer to Income Growth S Corp Annuity Ordinary & Medicare Capital Gains Investment Combined In Balance New GRAT 2.0% 6.0% Stock Payment Income Taxes Taxes Balance Value , , , ,269 1,114, , , , ,337 78, ,684 28,657 1,256, ,657 79,337-1,014-3, , ,648-53, , ,073-3, , ,790-56, , ,136-3, , ,045-60,116-60, , ,202-3, , ,106-63,636-63, , ,273-3, , ,171-67,363-67, , ,347-4, , ,239-71,308-71, , ,426-4, , ,312-75,484-75,484 52

58 Rolling GRAT Illustration - Trust 2 Basis of Transferred Property Jack & Jill Flash Part 1 of 2 Total Adjusted Basis of Property Year Basis Basis Other Net Ending Beginning Transferred Transferred Basis Basis Ending Beginning Ending In Basis In Out Adjustments Adjustments Basis Value Value , , ,305 2,198,155 2,352, , , , ,776 1,586,741 1,697, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,896 53

59 Rolling GRAT Illustration - Trust 2 Basis of Transferred Property Jack & Jill Flash Part 2 of 2 Adjusted Basis & Unrealized Gains Apportioned to GRAT Adjusted Basis & Unrealized Gains Apportioned to Grantor Year Ending Ending Ending Beginning Beginning Ending Ending Unrealized Beginning Beginning Ending Ending Unrealized In Value Basis Value Basis Gains Value Basis Value Basis Gains ,198, ,305 1,586, ,776 1,170, , , , ,586, , , , , ,227, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

60 Rolling GRAT Illustration - Trust 3 Wealth Transfer Summary Jack & Jill Flash Part 1 of 2 GRAT Property & Investments Grantor GRAT-Derived Accumulations Year GRAT Gross Estate GRAT Grantor Gross Estate Grantor Ending S Corp Value GRAT Gross Estate Unrealized S Corp Value Investments/ In Stock 65.0% Investments Value Gains Stock 65.0% -Defunding ,399,825 1,559, ,812, , , , , ,688 1,870,541 1,215,852 42, , , , , , , , , , , , , , , , , , , , , ,046, , , ,186 55

61 Rolling GRAT Illustration - Trust 3 Wealth Transfer Summary Jack & Jill Flash Part 2 of 2 Net to Heirs GRAT Value Capital Gains Year +/- Grantor GRAT & Medicare Ending Investments/ Gross Taxable Estate Estate Taxes on Net In -Defunding Estate Gift Tax Base Taxes Trust Property to Heirs ,011,540 2,848, ,848,491 1,139, ,872, ,610,202 1,258, ,258, , ,668 1,983, ,779-82, ,139-32, , , ,490-86, ,950-34, , , ,360-92, ,042-36, , , ,991-97, ,432-38, , , ,047, , ,138-41, , , ,157, , ,178-43, , ,887 56

62 Rolling GRAT Illustration - Trust 3 Annuity Payments Jack & Jill Flash Required Annuity Payment Source of Annuity Payment Undiscounted Present Value Year Cash from GRAT GRAT Value of of Annuity Ending Annuity Annuity S Corp Investment Property Property Payments In Rate Payment Stock Distribution Distribution Distribution 3.0% % % % 1,335, , , , ,173 1,222, % 1,335, , ,215,852 1,870,541 1,186, % %

63 Rolling GRAT Illustration - Trust 3 Flows Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Capital Unrealized Ending Distribution Ending Ending Property Cash Gains Gains Unrealized to Satisfy Property In Value Yield Growth Triggered Distributed Gains Annuity Value ,105, , , ,098 1,812, ,173 2,399, ,399, , , ,442, ,688 1,870, , ,272 34,864 48, , , ,081 37,304 52, , , ,307 39,915 55, , , ,188 42,709 59, , , ,981 45,699 63, , , ,960 48,898 68, , ,046,417 58

64 Rolling GRAT Illustration - Trust 3 Flows Jack & Jill Flash Part 2 of 2 Investments Qualified Year Beginning Current Cash from Distribution Dividends + Income Ending Total Ending Investment Income Growth S Corp to Satisfy Ordinary & Medicare Capital Gains Investment Ending In Balance 2.0% 6.0% Stock Annuity Income Taxes Taxes Balance GRAT Value ,500 10,750 32, , , ,399, , , , , ,019 26, , , ,611 37, , ,074 57, , ,141 1,143 3,428 39, , ,232 91, , ,222 1,824 5,473 42, , , ,450 1,043, ,450 2,589 7,767 45, , , ,219 1,150, ,219 3,444 10,333 48, , , ,956 1,266,373 59

65 Rolling GRAT Illustration - Trust 3 Grantor Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Gains Gains GRAT Ending Ending Property Transfer to Cash Transferred Transferred Unrealized Annuity Property In Value New GRAT Yield Growth In Out Gains Payment Value , , , , , , ,442, ,098 1,442,433 1,870,541 1,870, ,870,541 1,870, ,442,

66 Rolling GRAT Illustration - Trust 3 Grantor Jack & Jill Flash Part 2 of 2 Investments and/or Estate Defunding Qualified Year Beginning Current Cash from GRAT Dividends + Income Ending Total Ending Investment Transfer to Income Growth S Corp Annuity Ordinary & Medicare Capital Gains Investment Combined In Balance New GRAT 2.0% 6.0% Stock Payment Income Taxes Taxes Balance Value , ,030 1,634 45, ,542 1,611, , , , , , ,729 42,389 1,912, , ,991-1,552-4, , ,428-82,147-82, , ,643-4, , ,512-86,958-86, , ,739-5, , ,600-92,050-92, , ,841-5, , ,694-97,440-97, , ,949-5, , , , , , ,063-6, , , , ,186 61

67 Rolling GRAT Illustration - Trust 3 Basis of Transferred Property Jack & Jill Flash Part 1 of 2 Total Adjusted Basis of Property Year Basis Basis Other Net Ending Beginning Transferred Transferred Basis Basis Ending Beginning Ending In Basis In Out Adjustments Adjustments Basis Value Value , , ,767 3,105,606 3,322, , , , ,692 2,399,825 2,567, , , , , , , , , , , , , , , , , , , , , , , , , ,960 1,046,417 62

68 Rolling GRAT Illustration - Trust 3 Basis of Transferred Property Jack & Jill Flash Part 2 of 2 Adjusted Basis & Unrealized Gains Apportioned to GRAT Adjusted Basis & Unrealized Gains Apportioned to Grantor Year Ending Ending Ending Beginning Beginning Ending Ending Unrealized Beginning Beginning Ending Ending Unrealized In Value Basis Value Basis Gains Value Basis Value Basis Gains ,105, ,767 2,399, ,692 1,812, , , , ,399, , , , , ,870, ,108 1,442, , , , , , , , , , , , , , , , , , , , , , , , , , , ,584 1,046, , ,

69 Rolling GRAT Illustration - Trust 4 Wealth Transfer Summary Jack & Jill Flash Part 1 of 2 GRAT Property & Investments Grantor GRAT-Derived Accumulations Year GRAT Gross Estate GRAT Grantor Gross Estate Grantor Ending S Corp Value GRAT Gross Estate Unrealized S Corp Value Investments/ In Stock 65.0% Investments Value Gains Stock 65.0% -Defunding ,041,831 1,327, ,574, , , , , ,119 1,622,341 1,054,522 33, , , ,488 1,735,905 1,128,338 98, , , ,613 1,857,418 1,207, , , , ,687 1,987,437 1,291, , , , ,916 2,126,558 1,382, , , , ,521 2,275,417 1,479, ,796 64

70 Rolling GRAT Illustration - Trust 4 Wealth Transfer Summary Jack & Jill Flash Part 2 of 2 Net to Heirs GRAT Value Capital Gains Year +/- Grantor GRAT & Medicare Ending Investments/ Gross Taxable Estate Estate Taxes on Net In -Defunding Estate Gift Tax Base Taxes Trust Property to Heirs ,247,094 2,441, ,441, , ,270, ,218,686 1,088, ,088, , ,687 1,681, ,457,719 1,226, ,226, , ,742 1,856, ,718,387 1,378, ,378, , ,431 2,046, ,002,492 1,544, ,544, , ,798 2,253, ,311,979 1,726, ,726, , ,891 2,479, ,648,945 1,924, ,924, , ,760 2,725,256 65

71 Rolling GRAT Illustration - Trust 4 Annuity Payments Jack & Jill Flash Required Annuity Payment Source of Annuity Payment Undiscounted Present Value Year Cash from GRAT GRAT Value of of Annuity Ending Annuity Annuity S Corp Investment Property Property Payments In Rate Payment Stock Distribution Distribution Distribution 3.0% % % % % 1,156, , , , ,604 1,027, % 1,156, , ,054,521 1,622, , %

72 Rolling GRAT Illustration - Trust 4 Flows Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Capital Unrealized Ending Distribution Ending Ending Property Cash Gains Gains Unrealized to Satisfy Property In Value Yield Growth Triggered Distributed Gains Annuity Value ,150, , , ,189 1,574, ,604 2,041, ,041, , , ,275, ,119 1,622, , ,418 28,121 39, , , ,787 30,089 42, , , ,912 32,196 45, , , ,986 34,449 48, , , ,215 36,861 51, , ,820 67

73 Rolling GRAT Illustration - Trust 4 Flows Jack & Jill Flash Part 2 of 2 Investments Qualified Year Beginning Current Cash from Distribution Dividends + Income Ending Total Ending Investment Income Growth S Corp to Satisfy Ordinary & Medicare Capital Gains Investment Ending In Balance 2.0% 6.0% Stock Annuity Income Taxes Taxes Balance GRAT Value ,117 16,302 48, , , ,041, , , , , ,468 21, , , ,299 30, , ,319 46, , , ,765 32, , ,253 73, , ,580 1,472 4,415 34, , , , , ,415 2,088 6,265 36, , , , ,732 68

74 Rolling GRAT Illustration - Trust 4 Grantor Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Gains Gains GRAT Ending Ending Property Transfer to Cash Transferred Transferred Unrealized Annuity Property In Value New GRAT Yield Growth In Out Gains Payment Value , , , , , , ,275, ,189 1,275,329 1,622,341 1,622, ,622, , , ,388, ,735, ,735, , , ,510, ,857, ,857, , , ,640, ,987, ,987, , , ,779, ,126, ,126, , , ,928, ,275,417 69

75 Rolling GRAT Illustration - Trust 4 Grantor Jack & Jill Flash Part 2 of 2 Investments and/or Estate Defunding Qualified Year Beginning Current Cash from GRAT Dividends + Income Ending Total Ending Investment Transfer to Income Growth S Corp Annuity Ordinary & Medicare Capital Gains Investment Combined In Balance New GRAT 2.0% 6.0% Stock Payment Income Taxes Taxes Balance Value , ,846 2,478 39, ,659 1,205, , , , , , ,704 33,927 1,656, , ,036 81, , ,281 98,374 1,834, , ,967 5,902 86, , , ,967 2,028, , ,419 10,258 92, , , ,489 2,239, , ,050 15,149 99, , , ,791 2,470, , ,876 20, , ,204 1,045 30, ,796 2,721,213 70

76 Rolling GRAT Illustration - Trust 4 Basis of Transferred Property Jack & Jill Flash Part 1 of 2 Total Adjusted Basis of Property Year Basis Basis Other Net Ending Beginning Transferred Transferred Basis Basis Ending Beginning Ending In Basis In Out Adjustments Adjustments Basis Value Value , , ,726 2,150,874 2,301, , , , ,311 2,041,831 2,184, , ,311 2,184,759 2,337, , ,311 2,337,692 2,501, , ,311 2,501,330 2,676, , ,311 2,676,423 2,863, , ,311 2,863,773 3,064,237 71

77 Rolling GRAT Illustration - Trust 4 Basis of Transferred Property Jack & Jill Flash Part 2 of 2 Adjusted Basis & Unrealized Gains Apportioned to GRAT Adjusted Basis & Unrealized Gains Apportioned to Grantor Year Ending Ending Ending Beginning Beginning Ending Ending Unrealized Beginning Beginning Ending Ending Unrealized In Value Basis Value Basis Gains Value Basis Value Basis Gains ,150, ,726 2,041, ,311 1,574, ,604 59, , ,041, , , , , ,622, ,012 1,275, , , , , ,488 1,622, ,012 1,735, ,012 1,388, , , , , ,613 1,735, ,012 1,857, ,012 1,510, , , , , ,687 1,857, ,012 1,987, ,012 1,640, , , , , ,916 1,987, ,012 2,126, ,012 1,779, , , , , ,521 2,126, ,012 2,275, ,012 1,928,405 72

78 Rolling GRAT Illustration - Trust 5 Wealth Transfer Summary Jack & Jill Flash Part 1 of 2 GRAT Property & Investments Grantor GRAT-Derived Accumulations Year GRAT Gross Estate GRAT Grantor Gross Estate Grantor Ending S Corp Value GRAT Gross Estate Unrealized S Corp Value Investments/ In Stock 65.0% Investments Value Gains Stock 65.0% -Defunding ,279,255 1,481, ,791, ,254, , ,795 1,827,883 1,188,124 1,415, , , ,560 1,955,835 1,271,293 1,569, , , ,317 2,092,743 1,360,283 1,736, , , ,278 2,239,235 1,455,503 1,918, , , ,666 2,395,981 1,557,388 2,117,296 73

79 Rolling GRAT Illustration - Trust 5 Wealth Transfer Summary Jack & Jill Flash Part 2 of 2 Net to Heirs GRAT Value Capital Gains Year +/- Grantor GRAT & Medicare Ending Investments/ Gross Taxable Estate Estate Taxes on Net In -Defunding Estate Gift Tax Base Taxes Trust Property to Heirs ,534,004 2,736, ,736,265 1,094, ,439, ,854,781 2,604, ,604,109 1,041, ,423 2,700, ,202,310 2,840, ,840,571 1,136, ,259 2,943, ,578,716 3,096, ,096,757 1,238, ,783 3,207, ,986,287 3,374, ,374,235 1,349, ,044 3,492, ,427,486 3,674, ,674,691 1,469, ,093 3,801,516 74

80 Rolling GRAT Illustration - Trust 5 Annuity Payments Jack & Jill Flash Required Annuity Payment Source of Annuity Payment Undiscounted Present Value Year Cash from GRAT GRAT Value of of Annuity Ending Annuity Annuity S Corp Investment Property Property Payments In Rate Payment Stock Distribution Distribution Distribution 3.0% % % % % % 1,302, ,507 1,196, ,123, % 1,302, , ,188,124 1,827,883 1,090,873 75

81 Rolling GRAT Illustration - Trust 5 Flows Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Capital Unrealized Ending Distribution Ending Ending Property Cash Gains Gains Unrealized to Satisfy Property In Value Yield Growth Triggered Distributed Gains Annuity Value ,130, , , ,791, ,279, ,279, , , ,462, ,795 1,827, , ,920 30,546 42, , , ,684 32,684 45, , , ,442 34,972 48, , , ,403 37,420 52, , ,791 76

82 Rolling GRAT Illustration - Trust 5 Flows Jack & Jill Flash Part 2 of 2 Investments Qualified Year Beginning Current Cash from Distribution Dividends + Income Ending Total Ending Investment Income Growth S Corp to Satisfy Ordinary & Medicare Capital Gains Investment Ending In Balance 2.0% 6.0% Stock Annuity Income Taxes Taxes Balance GRAT Value ,107,862 22,157 66, ,196, , ,279, , , , , ,026 23, , , ,411 32, , ,950 50, , ,064 1,001 3,004 34, , ,965 79, , ,924 1,598 4,795 37, , , , ,209 77

83 Rolling GRAT Illustration - Trust 5 Grantor Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Gains Gains GRAT Ending Ending Property Cash Transferred Transferred Unrealized Annuity Property In Value Yield Growth In Out Gains Payment Value ,462, ,462,484 1,827,883 1,827, ,827,883 91, , ,590, ,955, ,955,835 97, , ,727, ,092, ,092, , , ,873, ,239, ,239, , , ,030, ,395,981 78

84 Rolling GRAT Illustration - Trust 5 Grantor Jack & Jill Flash Part 2 of 2 Investments and/or Estate Defunding Qualified Year Beginning Current Cash from GRAT Dividends + Income Ending Total Ending Investment Income Growth S Corp Annuity Ordinary & Medicare Capital Gains Investment Combined In Balance 2.0% 6.0% Stock Payment Income Taxes Taxes Balance Value ,302, ,664 3,368 44,881 1,254,311 1,254, ,254,311 25,086 75, , ,058 3,814 49,299 1,415,978 3,243, ,415,978 28,320 84,959 91, ,714 4,305 47,075 1,569,271 3,525, ,569,271 31,385 94,156 97, ,177 4,771 51,367 1,736,467 3,829, ,736,467 34, , , ,366 5,279 56,018 1,918,725 4,157, ,918,725 38, , , ,336 5,833 61,056 2,117,296 4,513,277 79

85 Rolling GRAT Illustration - Trust 5 Basis of Transferred Property Jack & Jill Flash Part 1 of 2 Total Adjusted Basis of Property Year Basis Other Net Ending Beginning Transferred Basis Basis Ending Beginning Ending In Basis In Adjustments Adjustments Basis Value Value , , ,523 2,130,145 2,279, , ,523 2,279,255 2,438, , ,523 2,438,803 2,609, , ,523 2,609,519 2,792, , ,523 2,792,185 2,987, , ,523 2,987,638 3,196,772 80

86 Rolling GRAT Illustration - Trust 5 Basis of Transferred Property Jack & Jill Flash Part 2 of 2 Adjusted Basis & Unrealized Gains Apportioned to GRAT Adjusted Basis & Unrealized Gains Apportioned to Grantor Year Ending Ending Ending Beginning Beginning Ending Ending Unrealized Beginning Beginning Ending Ending Unrealized In Value Basis Value Basis Gains Value Basis Value Basis Gains ,130, ,523 2,279, ,523 1,791, ,279, , , , , ,827, ,399 1,462, , , , , ,560 1,827, ,399 1,955, ,399 1,590, , , , , ,317 1,955, ,399 2,092, ,399 1,727, , , , , ,278 2,092, ,399 2,239, ,399 1,873, , , , , ,666 2,239, ,399 2,395, ,399 2,030,582 81

87 Grantor Retained Annuity Trust Supporting Schedules for TAX RATES AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Transfer $5MM ShopRight, Inc. to 6-Year GRAT or Five Rolling GRATs 82

88 Tax Rates Jack & Jill Flash Jack Transferee Federal Effective State Combined Federal Effective State Combined Year Ordinary Income Tax Ordinary Combined Ordinary Income Tax Ordinary Combined Ending Income Tax Rate Income Tax Capital Gains Estate Tax Income Tax Rate Income Tax Capital Gains In Rate 5.0% Rate Tax Rate Rate Rate 5.0% Rate Tax Rate % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0% 83

89 Sale to Grantor Trust An Illustration of the Use of a Sale of Appreciating Property to a Grantor Trust AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note 1

90 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Summary Jack & Jill Flash Sale to Grantor In 2023 Baseline Trust Taxable gift NA 325,000 Value of grantor trust at the end of 9 years in 2022 NA 9,623,462 Grantor's trust-related accumulations/-estate depletion 13,209,285 2,563,210 Total transferable value in ,209,285 13,209,285 Estate taxes or tax savings -3,906,708-1,155,284 Deferred capital gains and Medicare taxes 0-1,917,224 Net amount to 2nd generation 9,302,577 10,136,777 Planning advantage/-disadvantage to 2nd generation 834,200 Present value of 3.0% 620,723 Wealth Transfer Comparison in $Thousands Sale to Grantor Trust Baseline $8,800 $9,000 $9,200 $9,400 $9,600 $9,800 $10,000 $10,200 2

91 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Transaction Summary Jack & Jill Flash Grantor Trust Debt-Equity Split at the Start of the Analysis 10.0% 90.0% Initial Trust Equity Initial Trust Debt Transaction Summary Undiscounted value of property sold 4,500,000 Gift tax valuation discount -1,575,000 Discounted value of property sold/face amount of note 2,925,000 Target percentage of trust equity 10.0% Target equity 325,000 Less: Current value of existing trust property 0 Total taxable gift 325,000 Undiscounted value of property used to seed the trust 500,000 3

92 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Assumptions Jack & Jill Flash Personal Jack Jill Age Calculated life expectancy Life expectancy override Year of death Planning Illustration Transfer date 01-Jan-2014 Planning term 10 years Transfer of Property Transferor Jack Gift-splitting election Yes If Yes, adjust estate tax for consenting spouse's share Yes Note Assumptions Note term 9 years Interest rate on note 1.80% Amortization of note Balloon Allocation of excess trust cash flows Investments Estate & Gift Tax Jack Jill DSUE amount inherited 0 0 Post-1976 adjusted taxable gifts 0 0 Unified credit used 0 0 Property Transferred Undiscounted value of property sold 4,500,000 Basis of property sold 1,350,000 Type of property sold S corp Gift tax valuation discount 35.0% Estate tax valuation discount 35.0% Apply estate tax valuation discount in baseline scenario Yes Target percentage of trust equity 10.0% Target percentage is based on which value Face amount of note Total value transferred 2,925,000 Type of property used to seed trust S corp Value of property used to seed trust 500,000 Value of taxable gift associated with seeding the trust 325,000 4

93 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Assumptions Jack & Jill Flash Sale of Trust Property Trust sale during note term Grantor tax reimbursement Reduce tax reimbursement by debt service payments No NA NA Tax Rates Jack Transferee Federal tax bracket See schedule See schedule Federal capital gains tax rate See schedule See schedule State income tax rate 5.0% 5.0% Estate tax rate See schedule NA Investment Rates S corp Other Current cash yield 5.0% 2.0% Inc/-dec rate of cash yield 0.0% NA Tax yield multiple 100.0% NA Qualified dividend percentage 100.0% 100.0% Base growth rate 7.0% 6.0% Percentage of taxable income and realized gains subject to Medicare surtax 0.0% 100.0% Present value discount rate NA 3.0% Other Maintain grantor trust status after note term No Grantor's premature death triggers taxes Neither Summary results are shown net of deferred capital gains and Medicare taxes Yes Inflation rate 3.0% 5

94 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Annual Net to Heirs Comparison Jack & Jill Flash Wealth Transfer Comparison $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Baseline Sale to Grantor Trust The chart above compares an installment sale to a grantor trust to the baseline over the planning horizon. 6

95 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Annual Net to Heirs Comparison Jack & Jill Flash Net to Heirs Comparison Projected Present Value Year Sale to Sale to Trust Ending Sale to Grantor Trust Adv/-Disadv In Baseline Grantor Trust Adv/-Disadv 3.0% ,074,500 3,358, , , ,481,979 3,869, , , ,925,141 4,432, , , ,406,903 5,050, , , ,930,411 5,730, , , ,499,058 6,476,113-22,945-19, ,116,500 7,294, , , ,786,680 8,192, , , ,513,846 9,177, , , ,302,577 10,136, , ,723 7

96 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - 2nd Generation Transfer Jack & Jill Flash Assuming a 9-Year Balloon Note and No Sale of Transferred Property during the Note Term Jack Gifts Initial Seed Property $500,000 Jack Sells S Corp Stock $4,500,000 Taxable Gift $325,000 Trust Issues Note $2,925,000 Discounted Face Principal & Interest $3,398,850 Value of Trust in 2022 $9,623,462 Cap Gains & Medicare Taxes $1,917,224 Net to Heirs in 2023 $10,136,777 Assuming the transferred property is sold following Jack's death, the use of an installment sale to a grantor trust in this manner is projected to produce a net after-tax benefit of $834,200, or $620,723 in today's dollars. If, however, the property is not sold, the projected benefit of an installment sale to a grantor trust would be $2,751,424, or $2,047,318 in today's dollars. 8

97 Sale to Grantor Trust Sensitivity Analyses AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note 9

98 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sensitivity Analysis - Growth Rates Jack & Jill Flash 2023 Net to Heirs Comparison to Baseline Growth Sale to Projected PV of Baseline Grantor Trust Adv/-Disadv Adv/-Disadv 0.0% 4,934,139 5,200, , , % 5,948,517 6,337, , , % 7,148,995 7,665, , , % 8,565,599 9,300, , , % 10,232,542 11,288,831 1,056, , % 12,188,716 13,621,038 1,432,322 1,065,782 Planning Advantage/-Disadvantage over Baseline in Today's Dollars $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Pretax Growth Rates The illustration above shows the impact of pretax growth rate assumptions on the projected results. The graph graph shows the advantages/-disadvantages of a sale to a grantor trust, as compared to the baseline scenario in today's dollars. All other assumptions are the same as those listed on the Assumptions schedule. 10

99 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sensitivity Analysis - Note Term Jack & Jill Flash Varies Sale to Grantor Trust Summary Comparison to Baseline Note Term Total Net Projected PV of Interest to Heirs Adv/-Disadv Adv/-Disadv 5 263,250 10,048, , , ,900 10,085, , , ,550 10,091, , , ,200 10,066, , , ,850 10,136, , , ,500 10,255, , ,915 Planning Advantage/-Disadvantage over Baseline in Today's Dollars $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Note Term The illustration above shows the impact of the note term (in years) on the projected results. The graph shows the advantages/-disadvantages of a sale to a grantor trust, as compared to the baseline scenario, in today's dollars. All other assumptions are the same as those listed on the Assumptions schedule. 11

100 Sale to Grantor Trust Supporting Schedules for BASELINE SCENARIO AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note 12

101 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Baseline Illustration Jack & Jill Flash Part 1 of 3 S Corp Stock Year Beginning Ending Gross Estate Ending Property Cash Unrealized Property Value In Value Yield Growth Gains Value 65.0% Start 5,000,000 3,500, ,000, , ,000 3,850,000 5,350,000 3,477, ,350, , ,500 4,224,500 5,724,500 3,720, ,724, , ,715 4,625,215 6,125,215 3,981, ,125, , ,765 5,053,980 6,553,980 4,260, ,553, , ,779 5,512,759 7,012,759 4,558, ,012, , ,893 6,003,652 7,503,652 4,877, ,503, , ,256 6,528,907 8,028,907 5,218, ,028, , ,024 7,090,931 8,590,931 5,584, ,590, , ,365 7,692,296 9,192,296 5,974, ,192, , ,461 8,335,757 9,835,757 6,393,242 13

102 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Baseline Illustration Jack & Jill Flash Part 2 of 3 Investments Qualified Year Beginning Current Cash from Dividends + Income Ending Ending Investment Income Growth S Corp Ordinary & Medicare Capital Gains Investment In Balance 2.0% 6.0% Stock Income Taxes Taxes Balance Start , , , , ,500 3,850 11, , , , , ,748 8,195 24, , ,420 1,246 73, , ,136 13,083 39, , ,343 1,989 82, , ,263 18,565 55, , ,264 2,822 92,451 1,234, ,234,950 24,699 74, , ,337 3, ,370 1,577, ,577,260 31,545 94, , ,728 4, ,314 1,958, ,958,515 39, , , ,616 5, ,369 2,382, ,382,319 47, , , ,193 7, ,630 2,852, ,852,578 57, , , ,666 8, ,199 3,373,528 14

103 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Baseline Illustration Jack & Jill Flash Part 3 of 3 Net to Heirs Year Gross Ending Estate Estate Net In Value Taxes to Heirs Start ,670,000 1,468,000 4,074, ,130,673 1,652,269 4,481, ,635,526 1,854,210 4,925, ,188,350 2,075,340 5,406, ,793,243 2,317,297 5,930, ,454,634 2,581,853 6,499, ,177,305 2,870,922 7,116, ,966,424 3,186,569 7,786, ,827,570 3,531,028 8,513, ,766,770 3,906,708 9,302,577 15

104 Sale to Grantor Trust Supporting Schedules for SALE TO GRANTOR TRUST SCENARIO AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note 16

105 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Wealth Transfer Summary Jack & Jill Flash Part 1 of 2 Trust Property & Investments Grantor Trust-Derived Accumulations Year Trust Trust Note Combined Grantor Gross Estate Grantor Ending S Corp Trust Unrealized Face Net Trust Gross Estate S Corp Value Investments/ In Stock Investments Gains Amount Value Value Stock 65.0% -Defunding ,350, ,350 3,850,000 2,925,000 2,622,350 2,925, , ,724, ,988 4,224,500 2,925,000 3,227,488 2,925, , ,125, ,802 4,625,215 2,925,000 3,896,017 2,925, , ,553,980 1,005,077 5,053,980 2,925,000 4,634,057 2,925, , ,012,759 1,360,532 5,512,759 2,925,000 5,448,291 2,925, , ,503,652 1,767,363 6,003,652 2,925,000 6,346,014 2,925, , ,028,907 2,231,284 6,528,907 2,925,000 7,335,192 2,925, , ,590,931 2,758,582 7,090,931 2,925,000 8,424,513 2,925, , ,192, ,165 7,692, ,623, ,421, ,835, ,318 8,335, ,646, ,563,210 17

106 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Wealth Transfer Summary Jack & Jill Flash Part 2 of 2 Transfer to Heirs Present Value Capital Gains Year Total Trust of Taxes & Medicare Ending Transferable Gross Taxable Estate Estate Associated with Taxes on Net In Value Estate Gift Tax Base Taxes Early Death Trust Property to Heirs ,542,500 2,920, ,000 3,245,150 1,298, ,500 3,358, ,134,248 2,906, ,000 3,231,760 1,292, ,635 3,869, ,779,351 2,883, ,000 3,208,334 1,283, ,063,799 4,432, ,482,243 2,848, ,000 3,173,186 1,269, ,162,415 5,050, ,247,709 2,799, ,000 3,124,418 1,249, ,267,934 5,730, ,080,912 2,734, ,000 3,059,897 1,223, ,380,840 6,476, ,987,422 2,652, ,000 2,977,231 1,190, ,501,649 7,294, ,973,249 2,548, ,000 2,873,736 1,149, ,630,914 8,192, ,044,874 2,421, ,000 2,746,413 1,098, ,769,228 9,177, ,209,285 2,563, ,000 2,888,210 1,155, ,917,224 10,136,777 18

107 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Note Amortization & Debt Service Jack & Jill Flash Original Note Face Amount = $2,925,000 Source of Note Payments Present Value Year Total Total Outstanding Cash from Trust Trust of Note Ending Interest Scheduled Additional Total Planned Actual Note S Corp Investment Property Payments In 1.80% Principal Principal Principal Payment Payment Balance Stock Distribution Distribution 3.0% , ,650 52,650 2,925,000 52, , , ,650 52,650 2,925,000 52, , , ,650 52,650 2,925,000 52, , , ,650 52,650 2,925,000 52, , , ,650 52,650 2,925,000 52, , , ,650 52,650 2,925,000 52, , , ,650 52,650 2,925,000 52, , , ,650 52,650 2,925,000 52, , ,650 2,925, ,925,000 2,977,650 2,977, ,547 2,548, ,282,121 19

108 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Trust Flows Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Unrealized Ending Distribution Ending Ending Property Cash Gains Unrealized to Satisfy Property In Value Yield Growth Distributed Gains Debt Service Value Start 5,000,000 3,500, ,000, , , ,850, ,350, ,350, , , ,224, ,724, ,724, , , ,625, ,125, ,125, , , ,053, ,553, ,553, , , ,512, ,012, ,012, , , ,003, ,503, ,503, , , ,528, ,028, ,028, , , ,090, ,590, ,590, , , ,692, ,192, ,192, , , ,335, ,835,757 20

109 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Trust Flows Jack & Jill Flash Part 2 of 2 Investments Qualified Year Beginning Current Cash from Distribution Dividends + Ending Outstanding Total Ending Investment Income Growth S Corp to Satisfy Ordinary & Medicare Capital Gains Investment Note Ending In Balance 2.0% 6.0% Stock Debt Service Income Taxes Taxes Balance Balance Trust Value Start 0 0 2,925,000 2,075, ,000 52, , ,350 2,925,000 2,622, ,350 3,947 11, ,500 52, , ,988 2,925,000 3,227, ,988 8,560 25, ,225 52, , ,802 2,925,000 3,896, ,802 13,916 41, ,261 52, , ,005,077 2,925,000 4,634, ,005,077 20,102 60, ,699 52, , ,360,532 2,925,000 5,448, ,360,532 27,211 81, ,638 52, , ,767,363 2,925,000 6,346, ,767,363 35, , ,183 52, , ,231,284 2,925,000 7,335, ,231,284 44, , ,445 52, , ,758,582 2,925,000 8,424, ,758,582 55, , ,547 2,977, , , ,623, ,165 8,623 25, , ,238 1, , , ,646,075 21

110 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Grantor-Seller Jack & Jill Flash Part 1 of 2 S Corp Stock Year Beginning Gains Grantor Trust Ending Ending Property Cash Transferred Unrealized Debt Property In Value Yield Growth In Gains Service Value Start

111 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Grantor-Seller Jack & Jill Flash Part 2 of 2 Investments and/or Estate Defunding Qualified Year Beginning Current Cash from Grantor Trust Dividends + Income Ending Total Ending Investment Income Growth S Corp Debt Ordinary & Medicare Capital Gains Investment Combined In Balance 2.0% 6.0% Stock Service Income Taxes Taxes Balance Value Start , , ,500-4,850-4, , , , ,067-18,240-18, , , , ,420 1,246 73,371-41,666-41, , , , ,343 1,989 82,476-76,814-76, ,814-1,536-4, , ,264 2,822 92, , , ,582-2,512-7, , ,337 3, , , , ,103-3,802-11, , ,728 4, , , , ,769-5,455-16, , ,616 5, , , , ,264-7,525-22, ,977, ,193 7, ,630 2,421,413 2,421, ,421,413 48, , ,428 7,361 44,554 2,563,210 2,563,210 23

112 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Deferred Capital Gains & Medicare Taxes Jack & Jill Flash S Corp Stock In Trust Grantor's Death During Note Term Deferred Taxes Heirs' Deferred Year Trust Face Gain Capital Gains Present Value Balance of Capital Gains Ending S Corp Ending Unrealized Amount of on Deemed IRD & Medicare of Heirs' Taxes Unrealized & Medicare In Stock Basis Gains Note Sale Deduction Taxes 3.0% Gains Taxes ,350,000 1,500,000 3,850, ,850, , ,724,500 1,500,000 4,224, ,224, , ,125,215 1,500,000 4,625, ,625,215 1,063, ,553,980 1,500,000 5,053, ,053,980 1,162, ,012,759 1,500,000 5,512, ,512,759 1,267, ,503,652 1,500,000 6,003, ,003,652 1,380, ,028,907 1,500,000 6,528, ,528,907 1,501, ,590,931 1,500,000 7,090, ,090,931 1,630, ,192,296 1,500,000 7,692, ,692,296 1,769, ,835,757 1,500,000 8,335, ,335,757 1,917,224 24

113 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Basis of Transferred Property Jack & Jill Flash Part 1 of 2 Total Adjusted Basis of Property Year Net Ending Beginning Basis Ending Beginning Ending In Basis Adjustments Basis Value Value ,500, ,500,000 5,000,000 5,350, ,500, ,500,000 5,350,000 5,724, ,500, ,500,000 5,724,500 6,125, ,500, ,500,000 6,125,215 6,553, ,500, ,500,000 6,553,980 7,012, ,500, ,500,000 7,012,759 7,503, ,500, ,500,000 7,503,652 8,028, ,500, ,500,000 8,028,907 8,590, ,500, ,500,000 8,590,931 9,192, ,500, ,500,000 9,192,296 9,835,757 25

114 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Sale to Grantor Trust Illustration - Basis of Transferred Property Jack & Jill Flash Part 2 of 2 Adjusted Basis & Unrealized Gains Apportioned to Trust Adjusted Basis & Unrealized Gains Apportioned to Grantor Year Ending Ending Ending Beginning Beginning Ending Ending Unrealized Beginning Beginning Ending Ending Unrealized In Value Basis Value Basis Gains Value Basis Value Basis Gains ,000,000 1,500,000 5,350,000 1,500,000 3,850, ,350,000 1,500,000 5,724,500 1,500,000 4,224, ,724,500 1,500,000 6,125,215 1,500,000 4,625, ,125,215 1,500,000 6,553,980 1,500,000 5,053, ,553,980 1,500,000 7,012,759 1,500,000 5,512, ,012,759 1,500,000 7,503,652 1,500,000 6,003, ,503,652 1,500,000 8,028,907 1,500,000 6,528, ,028,907 1,500,000 8,590,931 1,500,000 7,090, ,590,931 1,500,000 9,192,296 1,500,000 7,692, ,192,296 1,500,000 9,835,757 1,500,000 8,335,

115 Sale to Grantor Trust Supporting Schedules for TAX RATES AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note 27

116 Sale to Grantor Trust - Gift & Sell $5MM ShopRight, Inc. to Grantor Trust for 9-Year Note Tax Rates Jack & Jill Flash Jack Transferee Federal Effective State Combined Federal Effective State Combined Year Ordinary Income Tax Ordinary Combined Ordinary Income Tax Ordinary Combined Ending Income Tax Rate Income Tax Capital Gains Estate Tax IRD Deduction Income Tax Rate Income Tax Capital Gains In Rate 5.0% Rate Tax Rate Rate Tax Rate Rate 5.0% Rate Tax Rate % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% % 3.0% 42.6% 23.0% 40.0% 40.0% 39.6% 3.0% 42.6% 23.0% 28