1. How to Play With OPM (OTHER PEOPLE’S MONEY)

2. Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed by outside accountant –Major analysis of competitive threats –Tremendous focus on addressable market space –Vetted by experienced business people prior to release –Initial investment dollars by founders & business leaders committed prior to VC commitment

3. Cantilever Background & Timeline VC committed in 1998 –Founders resign positions to eliminate any conflict issues –Business plan re-written Company Started in 1999 –Located in Purdue Research Park Company sold in 2005

4. What does Cantilever do?

5. Cantilever Readiness Engine® Sales Manager AR Analyst Marketing Sales Rep.Customer Contracts Shipping Complex Problem Patent Pending Software Tool that Speeds Up Business Decision Making and Problem Solving.Complimentary Single Bolt-On to Existing Systems. ROI: in as little as 90 Days

6. Sales Manager AR Analyst Marketing Sales Rep.Customer Contracts Shipping Complex Problem Software Tool that Speeds Up Business Decision Making and Problem Solving. ROI: in as little as 90 days Cantilever Readiness Engine®

7. Proven Results with Fortune 300 “The Readiness Engine [solves] problems never before solved with software.” John Crowther, Former CIO Cummins Inc.

8. Competitive Landscape Lotus Notes Collaboration Business Process Workflow Anticipated Unanticipated Flexible Structured Readiness Engine MySAP ERP e-Room CRM PLCM PDM Report Generators Instant Messaging Business Intelligence e-mail PortalsCorticonLombardi Software

9. Key Focus Areas Locate Office Space Incubators are key Define Cash tracking and financial reporting Hire Key employees Build Scaleable Infrastructure Build product Revenue generating customers Implementation methodology-Repeatable revenue model Prove ROI System use expanding/Sell One sell many Break even

10. VC Expectations Phase I –Tight financial controls – monitor cash –Build product –Sales reporting –Revenue/Revenue/Revenue –Weekly/monthly meetings Phase II –Repeatable sales model –Sell one – sell many –Market focus & migration

11. Representative Case Study 0 500 1000 1500 2000 2500 3000 3500 20002001200220032004 Pilot Revenues In $,000 Revenues In $,000 Pricing Methodology: -Expanding License Fees -Professional Fees Per Project

12. How Will You Grow the Business …Market Focus & Migration Early Adopters Warranty Aftermarket New Product Introduction Engineering & Obsolescence Accounts Receivable Recurring Failures Sales Force Performance Management Accounts Payable Discrete Manufacturing Proven “Off the Shelf” Solutions Expanded Applications Industry Verticals Aero Space Automotive WIP and Finished Goods Inventory Minimization

13. If You Need More Money Good news: –Sales and growth are exceeding expectations Bad news: –Estimates low Product development longer Sales slower Communicate early & often – no surprises Your relationship with the VC & the Board is key Warning – Some VCs operate on the “One Miss You Are Out” model

14. Exit Strategy Exiting is hard work –VC may drive timing of exit –Due diligence is really tough –Going public with SOX is a new game