How do you deal w/ management option pool predicated on exit equity in excess of sponsor contribution?

Basically the title. Assuming $0 strike (so 100% exercised), how to do you handle options structured like this?

Is it just (Exit Equity value - Sponsor Investment) * management option pool % / par value of shares = total Management shares? Then divide that by Total Diluted Share count to get post dilution management ownership?

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