Virnetx Model 3/29/2014

Revenues		2014	2015	2016
2012 Jury Verdict		$        368,000,000
11/06/2013 - 2/26/2013 Supp Damages		$          36,960,000
3/1/2013-12/31/2013 Royalty Owed		$        284,417,027
1/1/2014-12/31/2014 Royalty Owed		$        358,365,453
Assuming Y/Y 5% growth
2015 Royalty Owed			$        376,283,725
2016 Royalty Owed				$             395,097,911
Total		$    1,047,742,479	$        376,283,725	$             395,097,911
Expenses:
25% portion owed to SAIC		$    93,140,800.00	$                            -	$                                 -
8% owed to McKool Smith / CCC		$    32,396,800.00	$                            -	$                                 -
Virnetx Expenses		$    20,000,000.00	$    20,000,000.00	$         20,000,000.00
Total		$  145,537,600.00	$    20,000,000.00	$         20,000,000.00
Income Before Taxes		$  902,204,879.22	$  356,283,725.18	$       375,097,911.44
Taxes 35%		$  315,771,707.73	$  124,699,303.81	$       131,284,269.00
Net Income		$  586,433,171.49	$  231,584,421.37	$       243,813,642.43
Fully Diluted Shares Outstanding 55,000,0000
EPS		$                     10.66	$                       4.21	$                            4.43
Assumptions:
The royalty base is affirmed at the CAFC, en banc is denied, and USSC is not heard.
Apple does not develop a workaround for VPNoD and Facetime.
Does not include any damages from the Fall 2015 Trial.
Does not include any further licensing from non-defendants.
Does not include any Microsoft damages or license.
Does not include any revenues from a Cisco retrial or license.
A payment for the jury verdict / supplemental damages would be received in late 2014 or
sometime in 2015.  Timing adjustments might be needed.
Does not include any interest owed by Apple.
Assumes SAIC and MS/CCC owed portion only covers the jury verdict and final judgment
through 2/26/2013.  Ongoing royalties are not covered in their respective agreements.