Presentation by: Jeffrey S. McCormick General Partner of Saturn Partners LLC CEO of Alternative Technology Resources, Inc. Saturn Partners

What are the exit strategies? Saturn Partners

What are the exit strategies? 1)Cash Flow Saturn Partners

What are the exit strategies? 1)Cash Flow 2)Sale of Assets/Company, perhaps to employees Saturn Partners

What are the exit strategies? 1)Cash Flow 2)Sale of Assets/Company, perhaps to employees 3)Reverse into a Shell Saturn Partners

What are the exit strategies? 1)Cash Flow 2)Sale of Assets/Company, perhaps to employees 3)Reverse into a Shell 4)Private to Private Transaction Saturn Partners

What are the exit strategies? 1)Cash Flow 2)Sale of Assets/Company, perhaps to employees 3)Reverse into a Shell 4)Private to Private Transaction 5)Merger or Acquisition - Public Saturn Partners

What are the exit strategies? 1)Cash Flow 2)Sale of Assets/Company, perhaps to employees 3)Reverse into a Shell 4)Private to Private Transaction 5)Merger or Acquisition - Public 6)OIP Saturn Partners

What are some of the issues for M&A transactions? Saturn Partners

What are some of the issues for M&A transactions? 1)Tax Considerations Saturn Partners

What are some of the issues for M&A transactions? 1)Tax Considerations 2)Cash v. Stock Saturn Partners

What are some of the issues for M&A transactions? 1)Tax Considerations 2)Cash v. Stock 3)Asset v. Stock Purchase Saturn Partners

What are some of the issues for M&A transactions? 1)Tax Considerations 2)Cash v. Stock 3)Asset v. Stock Purchase 4)Management Issues; Lock-ups, Vesting, Non-competes Saturn Partners

What are some of the issues for M&A transactions? 1)Tax Considerations 2)Cash v. Stock 3)Asset v. Stock Purchase 4)Management Issues; Lock-ups, Vesting, Non-competes 5)Legal Considerations; Contingencies, Liabilities Saturn Partners

What are some of the issues for M&A transactions? 1)Tax Considerations 2)Cash v. Stock 3)Asset v. Stock Purchase 4)Management Issues; Lock-ups, Vesting, Non-competes 5)Legal Considerations; Contingencies, Liabilities 6)Perspective: VC, Management, Employees, etc. Saturn Partners

What are some of the factors that dictate value of acquisitions? Saturn Partners

What are some of the factors that dictate value of acquisitions? 1)Economic Factors: Revenues, Earnings 2)Technology 3)Competitive Environment of Acquirer 4)Employees and Management 5)R&D Pipeline 6)Market Perception Saturn Partners

Why are IPOs so attractive? Saturn Partners

Why are IPOs so attractive? 1)Raise significant amounts of capital 2)Allow you the fuel for acquisition strategies 3)Create awareness 4)Liquidity for investors, employees Saturn Partners

What are some of the issues and negatives with IPOs? Saturn Partners

What are some of the issues and negatives with IPOs? 1)You need to be a good storyteller 2)Reporting 3)Pressure 4)Liabilities 5)Visibility Saturn Partners

General Advice Saturn Partners

General Advice 1)Technology is tougher to market than a solution Saturn Partners

General Advice 1)Technology is tougher to market than a solution 2) Build a company to last, be prepared to sell Saturn Partners

General Advice 1)Technology is tougher to market than a solution 2)Build a company to last, be prepared to sell 3)Set realistic goals and expectations, and allow those to be dynamic Saturn Partners

General Advice 1)Technology is tougher to market than a solution 2)Build a company to last, be prepared to sell 3)Set realistic goals and expectations, and allow those to be dynamic 4)Wealth is created in concentrated positions Wealth is preserved in diversified portfolios Saturn Partners