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DewDiligence

01/25/19 1:23 PM

#223366 RE: LS89 #223365

(ENTA)—The exercise-and-hold transaction—using cash rather than forfeited shares to pay the tax liability—is mathematically equivalent to an open-market purchase of the same number of shares.

However, the exercise-and-hold transaction is more bullish than an open-market purchase insofar as it can be executed even when the insider has material non-public information that would preclude an open-market purchase.