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Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Our strategic partner, Elutions, is a leader in the smart building space with highly
complementary skill set
Solution Partnerships
The extent of Elutions’ investment signals their commitment
to Cartesian, and to the smart building market opportunity
Partnership Details
• Strategic relationship to market, sell and implement certain
products, solutions and services developed by Elutions pursuant
to a Market Development Agreement
• Success of partnership incentivized through the Investment
Agreement
• Key terms of the Investment Agreement:
• Elutions to buy 609,756 shares of Cartesian stock at $3.28
• Elutions to lend Cartesian (through UK subsidiaries) $3.3M (at
7.825%) that can be converted into 996,544 shares via a
Tracking Warrant ($3.28 exercise price)
• Subject to shareholder approval, Elutions has ability to acquire
3.4M additional shares via an Incentive Warrant (exercise price
between $3.85 and $4.85) by delivering a minimum of $85M of
partnership revenue over the next 5 years (number of
Incentive Warrants to be vested equals 4% of partnership
revenue up to cap).
• Opportunity for Cartesian to eliminate debt after 30 months
(or 18 months if share price is at $5.50)
Elutions Overview
• End-to-end energy solutions, including web-enabled application
software, wireless and wireline networking hardware, energy
management bureau services, and engineering and integration
services
• Centralized business operations intelligence spanning the entire
energy supply chain, all infrastructure, and all critical assets
• Improvement of business processes relative to critical asset and
enterprise infrastructure via turnkey application software and
intelligent hardware solutions
• 2,750+ smart building deployments, with 30,000+ smart assets
under monitoring
• Offices in Tampa, Wisconsin, London, and Lyon, FR
• Founded in 1995