1. Helping Your Business Clients Attract Outside Capital Richard C. Bruder, Esq. October 20, 2006 7457 Franklin Road, Suite 250 Bloomfield Hills, Michigan 48301 (248) 539-2030 rbruder@elp-law.com

2. Different Stages Attract Different Capital Pre-Seed  Founder’s Seed  Friends and Family Early Stage  Angel Investors Mature  IPO/Merger (248) 539-2030 rbruder@elp-law.com

3. Bootstrapping Barter Equity Cut personal expenses Buy used Freeload Incubators (or home office) Customers! (248) 539-2030 rbruder@elp-law.com

4. What Do Angels Look Like? (248) 539-2030 rbruder@elp-law.com

5. How Angels Look At Deals - (248) 539-2030 rbruder@elp-law.com The Five Challenges 1. Technology - Can It Be Done? 2. Development - Can We Make It? 3. Production - Can We Make It Profitably? 4. Market - Will Someone Buy It? 5. Execution - Is This The Team To Do It?

6. How Angels Look At Deals - (248) 539-2030 rbruder@elp-law.com The Ten Advantages 1.Management 2.Compelling Idea 3.Proven Concept 4.Market Size 5.Competition 6.Financial Projections 7.Exit 8.Production 9.Marketing Plan 10.Risk Management

7. Resources for Entrepreneurs (248) 539-2030 rbruder@elp-law.com

8. Where to Find Angels (248) 539-2030 rbruder@elp-law.com

9. Typical Deal Structure (248) 539-2030 rbruder@elp-law.com  Preferred Stock  Convertible Debt

10. Basic Legal Issues (248) 539-2030 rbruder@elp-law.com  Choice of Entity  Founders Agreement  What does each provide?  What time commitment?  What percent ownership?  Vesting?  Invention Agreement?  Non-compete?  Securities Law  Due Diligence Lite

11. Q & A (248) 539-2030 rbruder@elp-law.com