1. DWD/v1.0/2 February 20071 Guidelines for Angel Investing Daniel W. DeHayes Professor Emeritus of Business Administration Indiana University

2. DWD/v1.0/2 February 20072 Introduction At an earlier meeting, there was substantial interest in the possibility of creating an angel investment group of Alliance members. Your Board decided to experiment with the concept during the February meeting. You were earlier sent the Business Plan and Executive Summary of the firm that will be presenting at 3:30 pm. The company presenting, HealthMatch, is currently seeking angel funding. The purposes of the experiment are: –To present a new business that you may be interested as an investment. –To test the idea of whether a angel investment group made up of Alliance members should be created. Remember that this is an experiment so your feedback is essential as to whether we should continue these sessions.

3. DWD/v1.0/2 February 20073 The Process The presenter will describe the need for his company’s services and what the company will provide. There will be other personnel from the firm who can answer questions about company operations. You may ask questions during the session in order to understand the firm and the progress they have made in the market. You will hear their proposed offer and the proposed security, eg, common stock, preferred stock, etc. and the rights an investor will have…eg, liquidation preference, etc. You may ask questions about the offer during the session or during the following break. Representatives from the firm will attend the cocktail party and be able to answer further questions about the firm and the deal. You may follow up with them at a later time if you are interested.

4. DWD/v1.0/2 February 20074 Guidelines The Alliance is NOT sponsoring this company or endorsing it any way. The Alliance will receive no compensation from the company. You will each make an individual investment decision. The Alliance cannot coordinate those individual deals. (We do not have a broker/dealer license.) Your feedback to DeHayes or a member of the Alliance Board is critical to determine if we should continue this kind of activity.