An Overview of Interprise Solutions

By Michael AndersonVice President of Business Development

Forward:This overview was prepared by Michael Anderson in order to assemble the resources

needed to acquire the assets of Interprise Solutions from Taylor Corporation.

Taylor Corporation has initiated conversations directly with specific companies to pursue a sale of the company. Michael has indicated to Taylor Corporation that, with the support of a group of passionate employees, he would like to assemble a group

of strategic investors to acquire the assets of the company.

Michael was the individual who brought Interprise to Taylor Corporation in his previous role in acquisitions and due to his background in ERP software joined the company thereafter. Since that time, Michael has been a consistent performer with

his sales accounting for 65.5% ($1.9M) of the company’s total revenue since the acquisition.

The employees supporting this initiative are passionate performers who make up the core of the company. This initiative is not about job preservation, in fact, the plan

would involve cutting some non-contributors. Rather, this is about the understanding that Interprise Suite is an application that stands alone in this

marketplace, and with the right decisions and leadership, this company and this product has the capability to be a top-tier player in a $50B marketplace.

Interprise Company OverviewEnterprise Resource Planning/Customer

Relationship Management SoftwareOriginally Funded by Gary Harrison and Tony

ParsonagePurchased by Taylor Corporation in April, 2008.All product development currently done in the

PhilippinesPartner channel doubled in size in 2008. “E”nterprise sales has made up more than 70%

of all sales in 2009.

Why is Interprise for Sale?Taylor Corporation has come to the realization that

Interprise does not fit within their areas of expertise. While very successful in manufacturing related businesses, software product management and technology based businesses have not thrived within Taylor. Wisely, Taylor is reorganizing their entire portfolio around their customers and strategically choosing which industries they should continue to pursue. The decision to sell comes after experiencing the following challenges.

Current ChallengesLeadership – Taylor, in an effort to keep a rapidly growing

company organized, inserted a 22 year Taylor veteran to run the company. Unfortunately, this individual had no technology/software experience. The result has been:Poor Product Prioritization – Resources were dedicated to

one large (paying) customer project instead of improving/maintaining the core product, this has prohibited Interprise from executing on it’s business plan and hitting key release dates.

Decreased Partner Confidence – Partners began to pull back their sales efforts resulting in decreased partner sales.

Product Management strategies have become centered around manufacturing principles vs. software development best practices resulting in poor quality and time to market.

Why Buy Interprise?Sales opportunities are abundant. A relationship with a multi-

channel sales solution has uncovered a niche that has proven to be incredible source of opportunities.

Despite frustration, our partners still believe in the product and platform, however, they are frustrated with the current Taylor leadership and the decisions that have been made that adversely affect their livelihood.

With current projects and opportunities and reducing unneeded overhead, the company can be profitable almost immediately.

The partner channel can and will recover with the right approach, being transparent and open about the status of the product and providing with the information they need to service their customers.

The product is poised to be major player in a $53B industry.

Market Opportunity OverviewInterprise crosses

three historically separate software “Niches”ERP - $40.7 Billion

by 2010CRM - $10.9 Billion

by 2010Business

Performance Systems (Workflow and BI) - $1.36 Billion by 2010

Combined - $52.96 Billion by 2010

Target MarketSMB Businesses – 20-499 EmployeesTarget Contact – CEO/COO/CFO/CTOBusiness Needs:

Ecommerce Driven business with potential for multi-channel sales strategies.

Driving need to stop using 3-4 different systems to run their business.

Outgrown QuickBooks or migrating from legacy system

Platform Overview - USPs“Smart-Client” using a Services Oriented Architecture

Runs as an application on your computerOperates over a Local Area Network or the Internet

Flexible Licensing – Perpetual or SaaSPlug-in Architecture–

Customize the application in runtime without modifying a single line of code.

Keeps customizations separated from Source CodeAllows for limitless modification and functionality without

concerns of painful upgrades.Stable and Scalable – N-Tier Design & Microsoft SQL ServerExtendable - .NET 2.0 architecture and SDK for Visual

StudioUnlimited Web Services Revenue potential

Connected Business Platform Overview

Internet Web Service

LAN / WAN

LAN / WAN

Application Overview - USPsCombined CRM/ERP – One true-view of your

customerReal-time, Fully Integrated eCommerceMulti-Channel Sales Engine with Ixtens

PartnershipIntegrated Point of SaleMultinational – Currency valuation, multi-

lingual, tax calculationAffordableHighly Customizable

Competitors

2010 Focus1. Focus on platform enhancements and application usability

– drive Multi-Channel usability and ease of product implementation to expand upon current opportunities.

2. Immediately initiate company “transparency plan”a) Renewed ConnectedBusiness.com with Wiki, open forums,

Blogs from leadership discussing company initiativesb) Publicize the roadmap to partnersc) Offer online knowledgebase with bug tracking and resolution

available to partnersd) Launch online marketplace showing all of the products that

“Plugin” to Interprise to show the expanded ecosystem

3. Drive sales through “Enterprise Sales Team” for the multi-channel sales merchants through relationships with Ixtens and Etail Markets

2010 Focus5. Establish Account Management Group (AMG) to

aggressively call existing customer base and:a) Uncover services opportunitiesb) Renew Support Contractsc) Renew Maintenance Plans

6. Expand Professional Services Group (PSG) in order to leverage abundant services opportunities to provide cash flow while product sales and maintenance revenues recover.

7. Re-establish Value Added Reseller (VAR) relationships and confidence under new ownership

Importance of VARsVARs outsell the vendor’s

direct sales force 2-1VARs provide the needed

implementation resources needed to be successful.

There are approx. 240,000 VARs in the US

Our Target VAR $500K - $9.9M in Revenue =

42.2% of the market 78% sell Business Software

making our target VAR market approximately 79,000 VARs

36% will add, 48% will consider adding business software or services in 2008

Three Year Financial Overview

Summary Year 1 Year 2 Year 3 Revenues $ 1,546,986 $ 3,005,840 $ 4,952,092 $ 9,504,919 Expenses $ 1,468,361 $ 2,331,725 $ 3,247,578 $ 7,047,664

EBIT (After Acquisition Payment) $ 78,625 $ 674,115 $ 1,704,515 $ 2,457,255

Purchase Price ProposedThe acquisition would involve a nominal payment upfront and a percentage of revenue over 3 years.

Year 1 Payment % of

RevenueYear 2 Payment % of

RevenueYear 3 Payment % of

Revenue Total PurchaseDownPayment 5% 10% 10.0%

$ 100,000 $ 77,349 $ 300,584 $ 495,209 $ 973,143

See the attached Proforma

Q&A