VENTURE CAPITAL-PRIVATE EQUITY VALUATION MODEL FOR SMALL BUSINESS by Manuel Lacarte

Private & Confidential

New LOCK

Business Plan & Valuation model 11 April 2011

New LOCK - Inputs

Private & Confidential

Working EXCEL version available to download ($ 25) at: http//www.payloadz.com/go/sip?id=1432881

Copy & paste on your navigator`s address bar Units

Month 1

Country market Units %Growth % European market Cumulative units %growth

Unit % % Unit %

1.000

1.036 3,6%

1.074 3,6%

1.113 3,6%

1.153 3,6%

1.195 3,6%

1.238 3,6%

1.283 3,6%

33.396

34.432 3,1%

35.506 3,1%

36.619 3,1%

37.772 3,1%

38.966 3,2%

40.204 3,2%

European market Units %Growth Cumulative units %growth

Unit % Unit %

23.500

24.302 3,4% 818.212 3,1%

25.132 3,4% 843.344 3,1%

25.990 3,4% 869.334 3,1%

26.877 3,4% 896.210 3,1%

27.794 3,4% 924.005 3,1%

European market (excluding the country) Units %Growth Cumulative units %growth

Unit % Unit %

23.266 3,4% 783.780 3,1%

24.058 3,4% 807.838 3,1%

24.877 3,4% 832.715 3,1%

25.724 3,4% 858.439 3,1%

Penetrati贸n Country Units Country Pentraci贸n European market (excl. country) Units European market (excl. country) Total Units

% Unit % Unit Unit

Price Country Price European market ( excluding country)

Euro Euro

95 95

% %

40,0% 40,0%

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

1.329 3,6%

1.378 3,6%

1.427 3,6%

1.479 3,6%

41.487 3,2%

42.817 3,2%

44.194 3,2%

45.622 3,2%

28.743 3,4% 952.748 3,1%

29.724 3,4% 982.472 3,1%

30.739 3,4% 1.013.210 3,1%

31.788 3,4% 1.044.999 3,1%

26.599 3,4% 885.038 3,1%

27.505 3,4% 912.543 3,1%

28.441 3,4% 940.984 3,1%

29.409 3,4% 970.394 3,1%

year 1

year 2

year 3

year 4

year 5

Revenues Assumptions

Country Distributor`s Margin European market Distributor`s Margin (excl. Country)

793.910

22.500 760.514

Gross revenue Country % Growth Gross revenue European market (excl. Country) % Growth Gross revenue % Growth

Euro 000s % Euro 000s % Euro 000s

Net revenue Country % Growth Net revenue European market (excl. Country) % Growth Net revenue % Growth

Euro 000s % Euro 000s % Euro 000s %

Average collection period Debtors

days Euro 000s

3,0%

Euro

Inflati贸n

47.101 3,2%

14.705 38,0% 4,3% 47.101 45,4%

19.555 33,0% 4,5% 66.656 41,5%

23.003 17,6% 4,8% 89.659 34,5%

25.303 10,0% 4,8% 114.962 28,2%

27.328 8,0% 4,8% 142.290 23,8%

32.873 3,4% 1.077.872 3,1%

33.995 3,4% 1.111.867 3,2%

341.457 30,5% 1.111.867 44,3%

438.267 28,4% 1.550.134 39,4%

483.723 10,4% 2.033.857 31,2%

532.095 10,0% 2.565.952 26,2%

574.663 8,0% 3.140.615 22,4%

30.411 3,4% 1.000.804 3,1%

31.446 3,4% 1.032.250 3,1%

32.516 3,4% 1.064.766 3,2%

326.752 30,2% 1.064.766 44,3%

418.712 28,1% 1.483.478 39,3%

460.720 10,0% 1.944.198 31,1%

506.792 10,0% 2.450.990 26,1%

547.335 8,0% 2.998.325 22,3%

2,00% 1.335 0,20% 2.924 4.259

5,00% 4.483 0,70% 13.609 18.092

8,00% 9.197 1,30% 31.863 41.060

11,00% 15.652 2,00% 59.967 75.618

95 95

40,0% 40,0%

3,00

127 278 405 -

426 235,8% 1.293 365,5% 1.719 324,8%

874 105,2% 3.027 134,1% 3.901 126,9%

1.487 70,2% 5.697 88,2% 7.184 84,2%

76 167 243 -

256 235,8% 776 365,5% 1.031 324,8%

524 105,2% 1.816 134,1% 2.340 126,9%

892 70,2% 3.418 88,2% 4.310 84,2%

215

488

898

3,00

3,09

3,18

3,28

3,38

135

255

Cost of sales Assumptions Price CD+Package+others (per unit) Total cost of Sales

Euro 000s

New LOCK - Inputs

Private & Confidential

Working EXCEL version available to download ($ 25) at: http//www.payloadz.com/go/sip?id=1432881

Copy & paste on your navigator`s address bar Units

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

year 1

year 2

year 3

year 4

year 5

9,0

108,0 -

115,6 54,0

123,6 57,8 1

132,3 61,8 1

141,6 66,2 1

2,0

24,0 -

25,7 3,6

27,5 3,9

29,4 4,1

31,5 4,4

Operatinal and General Expenses Assumptions Operational and General expenses General Manager Salary Bonus # people Office personnel Salary Bonus # people Total Personnel Board of directors Remunerati贸n Cost office space Fiscal & accountant advisors Legal expenses IT Renting Other Suplies Comunications Materials (courier, stationary, etc) Travel expenses Insurance Capital Increase legal expenses Other expenses Total Operational and General expenses % on Total net revenues

Euro 000s Euro 000s Units

90 50,0% 1

Euro 000s 20 Euro 000s 15,0% Units Euro 000s # 5 Euro 000s 15 Euro 000s 3,0 Euro 000s 0,8 Euro 000s 1,0 Euro 000s 0,075 Euro 000s 0,3 Euro 000s 0,3 Euro 000s 1,0 Euro 000s 1,0 Euro 000s 1,5 Euro 000s 2,5 Euro 000s 1,0% Euro 000s 1,5 Euro 000s %

1 2,0

6,3 3,0 0,8 1,0 0,4 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,4 -

1 2,0

6,3 3,0 0,8 1,0 0,5 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,5 -

1 2,0

6,3 3,0 0,8 1,0 0,6 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,6 -

1 2,0

6,3 3,0 0,8 1,0 0,6 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,6 -

1 2,0

6,3 3,0 0,8 1,0 0,6 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,6 -

1 2,0

6,3 3,0 0,8 1,0 0,7 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,7 -

1 2,0

6,3 3,0 0,8 1,0 0,7 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,7 -

1 2,0

6,3 3,0 0,8 1,0 0,7 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,7 -

1 2,0

6,3 3,0 0,8 1,0 0,7 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,7 -

1 2,0

6,3 3,0 0,8 1,0 0,7 0,3 0,3 1,0 1,0 1,5 0,4 1,5 17,7 -

75,0 36,0 9,0 12,0 7,4 3,6 3,6 12,0 12,0 18,0 5,0 18,0 211,6 -

Total Operational and General expenses NOT capitalized

77,3 37,1 9,3 12,4 10,2 3,7 3,7 12,4 12,4 18,5 5,0 8,0 18,5 228,4 94,1%

79,6 38,2 9,5 12,7 13,4 3,8 3,8 12,7 12,7 19,1 2,6 19,1 227,3 22,0%

82,0 39,3 9,8 13,1 13,8 3,9 3,9 13,1 13,1 19,7 2,7 19,7 234,1 10,0%

84,4 40,5 10,1 13,5 14,2 4,1 4,1 13,5 13,5 20,3 2,7 20,3 241,1 5,6%

110,7

227,3

234,1

241,1

70,6 16,5

75,6 17,7

80,9 18,9

86,5 20,2

Developement & manteinance expenses Developement Personnel expenses Chief designer Salary Euro 000s Bonus Euro 000s # people Units Senior programmer Salary Euro 000s Bonus Euro 000s # people Units Junior programmer Salary Euro 000s Bonus Euro 000s # people Units Test Technician Salary Euro 000s Bonus Euro 000s # people Units T茅cnico de Soporte Salary Euro 000s Bonus Euro 000s # people Units Total Developement & manteinance Personnel expenses Euro 000s % on Total net revenues % Developement materials % on Total net revenues Total Developement & manteinance expenses % on Total net revenues

Euro 000s % Euro 000s %

Tota l Developement & M. expenses NOT capitalized Euro 000s

55 25,0%

5,5 1

35 15,0%

1 7,0

2 25 15,0%

20 10,0%

2,0

1 2,0

7,0

84,0 -

89,9 12,6

5,0

55,0 -

64,2 8,3

20,0 -

25,7 2,0

96,2 13,5

102,9 14,4 2

110,1 15,4 2

68,7 9,6

73,5 10,3

78,6 11,0

2 2,0

2,0

2 2,0

2,0

2 5,0

2,0

66,0 -

5,5

7,0

5,0

2,0

5,5

7,0

5,0

2,0

5,5

7,0

5,0

2,0

5,5

7,0

5,0 2

5,5

7,0

5,0

2,0

5,5

7,0

5,0 2

5,5

7,0

5,0

2,0

5,5

7,0

5,0 2

5,5

7,0

5,0

20 10,0%

5,5

7,0

0,51

5,5

2 27,5 2,6

2 29,4 2,7

31,5 2,9 1

2,0

14,0 -

25,7 1,4

27,5 2,6

29,4 2,7

31,5 2,9

12,5 -

17,5 -

19,5 -

21,5 -

1 21,5 -

239,0 -

316,8 130,5%

1 341,3 33,1%

1 365,2 15,6%

1 390,7 9,1%

1,5 -

2,6 -

3,1 -

3,6 -

38,3 -

44,1 18,2%

45,4 4,4%

46,8 2,0%

48,2 1,1%

14,0 -

20,1 -

22,6 -

25,1 -

277,3 -

360,9 148,7%

386,7 37,5%

412,0 17,6%

439,0 10,2%

160,1

386,7

412,0

439,0

New LOCK - Inputs

Private & Confidential

Working EXCEL version available to download ($ 25) at: http//www.payloadz.com/go/sip?id=1432881

Copy & paste on your navigator`s address bar Units Commercial expenses Senior Salesman Salary Expenses (travel, and others) # people Junior Salesman Salary Expenses (travel, and others) # people sales commission % period of paymen (sales commission) Commercial events (3per year) ads. & press (per page) Mailing quarterly Promotional material Xmas Campaign TotalCommercial expenses % on Total net revenues

Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s %

TotalCommercial expenses NOT capitalized

Euro 000s

Total # people Social Security rate ( company cost) Annual Increasing costs assumption

Euro 000s Euro 000s Units

60 1,5

Euro 000s Euro 000s Units Euro 000s

30 1,5

Units % %

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

year 2

year 3

77,0 18,5

94,4 20,3

176,4 78,7 4 133,9

188,8 81,0 4 248,8

12,0

36,0 60,0 4,8 5,5 12,0 282,9 116,5%

37,1 30,9 4,9 5,7 24,7 505,4 49,0%

38,2 31,8 5,1 5,8 50,9 628,7 26,9%

39,3 32,8 5,2 6,0 104,9 821,5 19,1%

188,0

505,4

628,7

821,5

38,5 18,5

88,2 19,7

82,4 19,1

year 5

year 4

164,9 76,4 4 59,3

5,0% 30 12 2,5 1,2 5,5 12,0

year 1

20,0% 7,0%

Tax Assumptions Corporation Tax Corporation Tax rate Taxable income Tax carryback usable next year due to looses The treasury creditor V.A.T. Tax V.A.T. rate V.A.T. output V.A.T. input V.A.T. to clear The treasury Creditor /(Debtor) The treasury Creditor /(Debtor)onthly Annual Increase /Decrease The Treasury Monthly Increase /Decrease The Treasury TOTAL Increase /Decrease The Treasury

% Euro 000s Euro 000s Euro 000s

35,0%

% Euro 000s Euro 000s Euro 000s Euro 000s

16,0%

Euro 000s

348 -

733 -

41 -

2.210 774

55,3 (55,3) (55,3)

12,2 60,4 (48,2) (48,2)

40,9 63,1 (22,2) (22,2)

83,9 68,8 1,2 1,2

142,7 94,6 4,0 4,0

(55,3)

7,1

26,0

23,4

2,7

24,2 (24,2) (24,2) (24,2)

2,9 (2,9) (2,9) (27,1)

2,9 (2,9) (2,9) (30,0)

2,7 (2,7) (2,7) (32,7)

2,7 (2,7) (2,7) (35,4)

3,0 (3,0) (3,0) (38,4)

2,8 (2,8) (2,8) (41,2)

2,8 (2,8) (2,8) (44,0)

2,8 (2,8) (2,8) (46,8)

2,8 (2,8) (2,8) (49,7)

2,8 (2,8) (2,8) (52,5)

2,8 (2,8) (2,8) (55,3)

(24,2)

(2,9)

(2,7)

(3,0)

(2,8)

(24,2)

(2,9)

(2,7)

(3,0)

(2,8)

(55,3)

7,1

26,0

23,4

776,3

12,0 20,0 25,0 57,0 57,0

57,0

12,0 20,0 25,0 57,0 57,0

57,0

31,4 31,4

37,6 69,0

40,2 109,2

42,1 151,2

40,9 192,2

43,5 235,7

43,5 279,2

43,5 322,7

43,5 366,2

43,5 409,7

43,5 453,2

43,5 496,8

496,8 496,8

421,8 918,5

918,5

75,0 75,0

75,0

75,0 75,0

75,0

85,7 160,7

Investment Assumptions Formation expenses Furniture Legal expenses Patents Total formation expenses Cumulative Investment

Euro 000s Euro 000s Euro 000s

Other deferred expenses Cumulative Investment

Euro 000s Euro 000s

Specific Hardware Investments Cumulative Investment

Euro 000s Euro 000s

Euro 000s

12 20 25

New LOCK - Inputs

Private & Confidential

Working EXCEL version available to download ($ 25) at: http//www.payloadz.com/go/sip?id=1432881

Copy & paste on your navigator`s address bar Units General Hardware Investments # joined the workforce hardware investments per employee reinstatements Total General Hardware Investments Cumulative Investments

Euro 000s Units Euro 000s Euro 000s Euro 000s Euro 000s

0,85

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

4,3 4,3 4,3

1,7 1,7 6,0

0,9 0,9 6,8

6,8

0,9 0,9 7,7

7,7

year 1

year 2

7,7 7,7 7,7

year 3

year 4

year 5

2,6 2,6 10,2

1,7 1,7 11,9

11,9

10,2 10,2 22,1

5,7 5,7

11,4 17,1

11,4 28,5

11,4 39,9

91,9 91,9

183,7 275,6

183,7 459,3

183,7 643,0

Depreciation Assumptions Formation expenses Depreciation Cumulative depreciation

years Euro 000s Euro 000s

Other deferred expenses Depreciation Cumulative depreciation

years Euro 000s Euro 000s

years

Specific and general HW & SW investments years of depreciation year 1 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total year 2 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total year 3 year 4 year 5

79 2 1 1 82,7

Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s

13,2 0,3 0,1 0,1 13,8

26,4 0,6 0,3 0,3 27,6

13,2 0,3 0,1 0,1 13,8

1 2 2,6 1,7 95,9

Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s

0,1 0,2 0,4

0,3 0,6 0,9 0,6

0,3 0,6 0,9 0,6 -

0,1 0,3 0,5 0,6 32,0

HW & SW Investments depreciation Depreciation. Cumulative

Euro 000s Euro 000s

14,2 14,2

29,0 43,1

29,0 72,1

46,8 118,9

Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s

43,2 43,2 (43,2)

214,8 214,8 (171,7)

487,6 487,6 (272,7)

898,0 898,0 (410,4)

Working Capital Assumptions Working Capital Debtors Creditors Inventories Working Capital Increase / Decrease of Working Capital

New LOCK - Inputs

Private & Confidential

Working EXCEL version available to download ($ 25) at: http//www.payloadz.com/go/sip?id=1432881

Copy & paste on your navigator`s address bar Units

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

year 1

year 2

year 3

year 4

year 5

300

200

Interest payments (EUROINNOV loan + Line of credit) Capitalized interest (EUROINNOV loan + Line of credit)

(2)

(1)

(8)

(8) (8)

(15)

(60)

Share Capital Increase Reductions Total

800 800

Debt Assumptions EUROINNOV loan (participation loan) Annual interest rate - low limit (Euribor + 0,5%) Annual interest rate - high limit (low limit + 6%) Línea de Crédito (Año 1) Línea de Crédito (Año 2) Incremento/(Amortización) Subscription fee

% % Euro 000s Euro 000s Euro 000s %

0,50%

Line of Credit Annual interest rate Line of Credit (Max. Limit) Bank fee

% Euro 000s %

5,0% 0 0,50%

3,0% 9,0% 300 200

Euro 000s Euro 000s Euro 000s

Assumptions Dividends Dividends "Pay-out Ratio" Objective

0,0%

New LOCK Transaction & financial Structure

phase 1

€200.000

New LOCK Entrepreneurs 52% VC - FUND 48%

€300.000

phase 2 Venture Capital FUND

Venture Capital FUND

Entrepreneurs

€200.000

9 months

Milestones to achieve Great Share premium to blossom

€800.000

Capital increase Share premium

New LOCK Entrepreneurs 51% VC - FUND 49%

Participation loan (grace period 5 years)

EUROINNOV

€200.000

+12 months

EUROINNOV

I. New LOCK New LOCK is a Start-up company. It is a spin-off from diverse players in TIC sector looking forward to take advantage from their professional capacities and knowledge by facing a market opportunity. _____________________________________________________________________________________________________________ II. The Team Well Known professionals with wide & successful experience in similar business. They are 2. “CHAIRMAN” and “CEO”. One will be in charge of technical development and the other will manage commercial matters. Rest of the team is identified and committed. They have already developed similar software, but now they are about to do the same for open operative Systems (Open OS) They know the whole business chain ____________________________________________________________________________________________________ III. Products and services portfolio New LOCK is an internet Secure Software & Content Management company, currently the objective is to complete the product solution which is pretty advanced. The security software is to protect the information, communications, the operative system and every single application in the equipment. ______________________________________________________________________________________________________________ IV. Sector: Secure Software & Content Open Systems market: -Growing and global market, but still weak demand and offer. Opportunity to take position in the middle term reports) -“First-mover advantages” -Governments and big companies as main market -Big operators (Novell, IBM, Oracle, and SUN) are entering as the only chance in front of Microsoft dominant position. -Competitive sector. Business model based on service. Brand value. Support need to be guaranteed Security in Open OS: -There is no offer from big security software players (Ultimaco, Pointsec, SafeBoot, Symantec,...) -There are small start-ups and encrypting products -There is not a supplier that integrates: information protection + stability/systems control _____________________________________________________________________________________________________ V. Financial needs, Business Valuation & Transaction Structure Preliminary estimated capital requirements between million €1, 5 and €2, 5. Partial Draw downs will be taken down on a Scheduled basis depending on stated business milestones. Entrepreneur’s drawdown aprox. €200.000-€400.000. Initially there was still no a valuation of the business and then there was not a value for their shares. Anyway there was assumed that a share premium will be valued. _____________________________________________________________________________________________________ VI. Next steps Analysis and negotiation process begins...

New LOCK - Key Financials

year 1

year 2

year 3

year 4

year 5

Income Statement Total Net revenues % Growth

243 -

1.031 324,8%

2.340 126,9%

4.310 84,2%

Gross Margin % on total revenues

230 94,6%

974 94,4%

2.206 94,2%

4.055 94,1%

EBITDA % on total revenues

(229) -94,4%

(146) -14,1%

931 39,8%

2.553 59,2%

EBIT % on total revenues

(341) -140,4%

(370) -35,9%

707 30,2%

2.312 53,6%

NET INCOME AFTER TAXES % on total revenues

(348) -143,5%

(385) -37,3%

692 29,6%

1.478 34,3%

Net Earning after Taxes Depreciation Increase/Decrease The Treasury Increase/Decrease of Working Capital Operation Cash Flow

(55) (55)

(348) 112 7 (43) (273)

(385) 224 26 (172) (306)

692 224 23 (273) 667

1.478 242 776 (410) 2.086

Investments and deferred expenses

(636)

(424)

(2)

(96)

(692)

(697)

(308)

667

1.990

300 -

800 200 -

300

1.000

Cash Flow

CASH FLOW BEFORE FINANCIAL ACTIVITIES Shared Capital Increase Reductions EUROINNOV loan (participation loan) Line of Credit -Increase/(Redemption) CASH FLOW OF FINANCIAL ACTIVITIES INITIAL CASH BALANCE

400

311

670

Increase/(Decrease) CASH

(392)

303

(308)

667

1.990

311

670

2.660

(292) 400

43 (189) 852

215 (497) 467

488 170 1.159

898 2.160 2.637

FINAL CASH BALANCE Balance Sheet Working Capital Cash/ Net Debt Equity

New LOCK - P & L

Private & Confidential

( Euros 000) Units

year 1

year 2

year 3

year 4

year 5

Net revenues Country Rest of West Europe TotalNet revenues % Growth

Euro 000s Euro 000s Euro 000s %

76 167 243 -

256 776 1.031 324,8%

524 1.816 2.340 126,9%

892 3.418 4.310 84,2%

Total Cost of sales % on net revenues

Euro 000s %

(13) 5,4%

(58) 5,6%

(135) 5,8%

(255) 5,9%

Gross Margin % on net revenues

Euro 000s %

230 94,6%

974 94,4%

2.206 94,2%

4.055 94,1%

Operational and General expenses Operational an General expenses Developement & manteinance expenses Commercial expenses

Euro 000s Euro 000s Euro 000s

(111) (160) (188)

(227) (387) (505)

(234) (412) (629)

(241) (439) (821)

Total Operational and General expenses % on net revenues

Euro 000s %

(459) 189,0%

(1.119) 108,5%

(1.275) 54,5%

(1.502) 34,8%

EBITDA % on net revenues

Euro 000s %

(229) -94,4%

(146) -14,1%

931 39,8%

2.553 59,2%

Depreciation

Euro 000s

(112)

(224)

(242)

EBIT % on net revenues

Euro 000s %

(341) -140,4%

(370) -35,9%

707 30,2%

2.312 53,6%

Financial expenses (net)

Euro 000s

(8)

(15)

(60)

Pre-Tax Income % on net revenues

Euro 000s %

(348) -143,5%

(385) -37,3%

692 29,6%

2.252 52,2%

Taxes % effective Tax rate

Euro 000s %

0,0%

(774) 34,4%

NET INCOME AFTER TAXES % on net revenues

Euro 000s %

(348) -143,5%

(385) -37,3%

692 29,6%

1.478 34,3%

New LOCK - Cash Flow

Private & Confidential

( Euros 000)

Units Net Income after Taxes Depreciation Increase/Decrease The Treasury Increase/Decrease of Working Capital

year 1

year 2

year 3

year 4

year 5

Euro 000s Euro 000s Euro 000s Euro 000s

(55) -

(348) 112 7 (43)

(385) 224 26 (172)

692 224 23 (273)

1.478 242 776 (410)

Euro 000s

(55)

(273)

(306)

667

2.086

Euro 000s Euro 000s Euro 000s Euro 000s

(57) (497) (75) (8)

(422) (3)

(2)

(86) (10)

Investments Cash Flow

Euro 000s

(636)

(424)

(2)

(96)

CASH FLOW BEFORE FINANCIAL ACTIVITIES

Euro 000s

(692)

(697)

(308)

667

1.990

Euro 000s Euro 000s Euro 000s Euro 000s

300 -

800 200 -

Financial activities Cash Flow

Euro 000s

300

1.000

INITIAL CASH BALANCE

Euro 000s

400

311

670

Increase/(Decrease) CASH

Euro 000s

(392)

303

(308)

667

1.990

Euro 000s

311

670

2.660

Operations Cash Flow Formation expenses Other deferred expenses Investments in Specific Hardware & Software Investments in General Hardware

Share Capital Increase Reductions EUROINNOV loan (participation loan) Line of Credit

FINAL CASH BALANCE

Featured by Manuel Lacarte 11/04/2011

page 11

New LOCK - Balance Sheets

Private & Confidential

( Euros 000)

Units

opening balance sheet

year 1

year 2

year 3

year 4

year 5

ASSETS Net Fixed Assets Formation expenses Other deferred expenses Hardware and Software Total Net Fixed Assets

Euro 000s Euro 000s Euro 000s Euro 000s

57 497 83 636

51 827 71 949

40 643 44 727

29 459 15 503

17 276 64 357

Current Assets Cash The Treasury Debtor Trade Debtors Inventories Total Current Assets

Euro 000s Euro 000s Euro 000s Euro 000s Euro 000s

400 400

8 55 64

311 48 43 403

3 22 215 240

670 488 1.158

2.660 898 3.558

TOTAL ASSETS

Euro 000s

400

700

1.352

967

1.660

3.914

Current Liabilities The Treasury Creditor Creditors Total Current Liabilities

Euro 000s Euro 000s Euro 000s

1 1

778 778

Debt EUROINNOV loan (participation loan) Line of Credit Total Debt

Euro 000s Euro 000s Euro 000s

300 300

500 500

Equity Share Capital FUND shareholder ETREPRENEURS shareholders Reserves & retained earnings Total Equity

Euro 000s Euro 000s Euro 000s Euro 000s

200 200 400

1.000 200 (348) 852

1.000 200 (733) 467

1.000 200 (41) 1.159

1.000 200 1.437 2.637

TOTAL LIABILITIES

Euro 000s

400

700

1.352

967

1.660

3.914

LIABILITIES

Check

New LOCK - Fund`S RETURN Exit assumption EXIT July year 6

Units

Business Plan scenario

FUND`S initial investment in the business

Euro 000s

1.000

Net revenues year 5

Euro 000s

2.580

3.460

4.310

5.160

6.047

-40%

-20%

20%

40%

% on business plan scenario MĂşltiple on net revenues year 5

% entrepreneus`ve got a call

3,3x

11.418 1.583 13.001

14.224 2.160 16.384

17.029 2.737 19.766

19.954 3.340 23.294

Firm Value Cash/ Net Debt Equity value at EXIT

Euro 000s

8.514 738 9.252

EBITDA year 5

Euro 000s

1.022

1.800

2.553

3.306

4.092

49,0% 4.534

49,0% 6.370

40,0% 6.553

35,0% 6.918

30,0% 6.988

FUND`S % of shares ( as per agreements) Amount Refunded

Euro 000s

% Euro 000s

TIR

38%

48%

49%

50%

51%

Equivalent Multiple for initial Investment

5,8x

8,6x

8,9x

9,5x

9,6x

Applications "This start-up is that big " Investments and Developement expenses Operational and General expenses Commercial expenses Total Applications

â&#x201A;Ź, 000s 1.700 700 500 500 1.700

Sources Entrepreneurs THE FUND Total Share Capital Debt (loan) Total debt Total Sources

â&#x201A;Ź, 000s 200 1.000 1.200 500 500 1.700

New LOCK -Revenues

Unit

year 1

year 2

year 3

year 4

year 5

Total Net Revenues Country market Units % Growth Cumulative units % Growth

Unit % Unit %

14.705 38,0% 47.101 45,4%

19.555 33,0% 66.656 41,5%

23.003 17,6% 89.659 34,5%

25.303 10,0% 114.962 28,2%

27.328 8,0% 142.290 23,8%

Penetration Units

% Unit

0,00% -

2,00% 1.335

5,00% 4.483

8,00% 9.197

11,00% 15.652

Euro

127

426

874

1.487

40,0%

256

524

892

Price Gross Revenues Distributor`s Margin Net Revenues

Euro 000s % Euro 000s

Rest of West Europe Units % Growth Cumulative units % Growth

Unit % Unit %

326.752 30,2% 1.064.766 44,3%

418.712 28,1% 1.483.478 39,3%

460.720 10,0% 1.944.198 31,1%

506.792 10,0% 2.450.990 26,1%

547.335 8,0% 2.998.325 22,3%

Penetration Units

% Unit

0,00% -

0,20% 2.924

0,70% 13.609

1,30% 31.863

2,00% 59.967

Euro

278

1.293

3.027

5.697

Price Gross Revenues Distributor`s Margin Net Revenues Total Net revenues % Growth

Euro 000s

40,0%

Euro 000s

167

776

1.816

3.418

Euro 000s %

243 -

1.031 324,8%

2.340 126,9%

4.310 84,2%

New LOCK - sales cost

units

year 1

year 2

year 3

year 4

year 5

CD+Package+others (per unit)

Euro/Unit

3,00

3,09

3,18

3,28

3,38

Total cost % on Total net revenues

Euro 000s %

13 5,4%

58 5,6%

135 5,8%

255 5,9%

New LOCK - Oper. Esp.append.

Units

Año 1

Año 2

Año 3

Año 4

Año 5

Total expenses Operational an General expenses % Total on net revenues Developement & manteinance expenses % Total on net revenues Commercial expenses % Total on net revenues Total Expenses % Total on net revenues

Euro 000s % Euro 000s % Euro 000s %

111 45,6% 160 65,9% 188 77,4%

227 22,0% 387 37,5% 505 49,0%

234 10,0% 412 17,6% 629 26,9%

241 5,6% 439 10,2% 821 19,1%

Euro 000s %

459 189,0%

1.119 108,5%

1.275 54,5%

1.502 34,8%

New LOCK - Investments

Units

year 1

year 2

year 3

year 4

year 5

Investments Specific Hardware & Software General Hardware

Euro 000s Euro 000s

75 8

86 10

Tatal Investments % Total on Net revenues

Euro 000s %

83 -

3 1,1%

2 0,2%

0,0%

96 2,2%

Formation expenses

Euro 000s

Other deferred expenses

Euro 000s

497

422

New LOCK - Financ. Append.

Units

year 1

year 2

year 3

year 4

year 5

EUROINNOV loan (participation loan) Principal increase

Euro 000s

300

200

Cumulative financing Principal reductions % principal reductions. Cumulative

Euro 000s Euro 000s %

300 0,0%

500 0,0%

Interest payments (fixed rate) Interest payments (variable rate)

Euro 000s Euro 000s

6 -

15 -

15 45

Subscription fee

Euro 000s

New LOCK - Taxes

Units

year 1

year 2

year 3

year 4

year 5

Corporation Tax EARNING BEFORE TAXES Tax carryback usable next year due to looses Taxable income Gross Tax charge % effective Tax rate

Euro 000s Euro 000s Euro 000s Euro 000s %

(348) 348 -

(385) 733 -

692 41 0,0%

2.252 2.210 774 34,4%

V.A.T V.A.T. input V.A.T. output

Euro 000s Euro 000s Euro 000s

55 -

60 12

63 41

69 84

95 143

V.A.T. payable / (receiveble) The Treasury Creditor / (Debtor)

Euro 000s Euro 000s

(55) (55)

(48) (48)

(22) (22)

15 1

48 4

Increase /Decrease The Treasury

Euro 000s

(55)

776

Newo LOCK - Working Capital

Units

year 1

year 2

year 3

year 4

year 5

Working Capital Debtors Creditors Inventories Total working Capital Increase / Decrease of Working Capital % on Total net revenue

Euro 000s Euro 000s Euro 000s

43 -

215 -

488 -

898 -

Euro 000s Euro 000s %

43 (43) 17,8%

215 (172) 16,6%

488 (273) 11,7%

898 (410) 9,5%

New LOCK - Personnel

Units Entrepreneurs General Manager Office personnel Officer Sales/Commercial Senior Salesman Junior Salesman Developement Chief designer Senior progammer Junior programmer Test technician Support technician Total

year 1

year 2

year 3

year 4

year 5

# #

2 1

# #

1 2

1 4

# # # # #

1 2 2 1 1