Exactor Sales Tax Product Offering

EXACTOR – SALES TAX COMPLIANCE

PRODUCT OFFERING (Dec. 2007)

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INTRODUCTION  Fully automated solution for secure, reliable and accurate sales tax record keeping and tax processing.  Proprietary technology, low-cost, ASP-based service • no upfront investment; • no software downloads; • no technical resources required.

 Initial target market – small & midsize businesses (SMBs).  Introducing to sales tax those standards and ease compliance typically associated with payroll processing.

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REACTIVE EXPENSE v. PROACTIVE INVESTMENT  Sales tax = mandatory activity. • Only reason to collect and remit – mandated by law. • Time and effort – by definition is non revenue generating.

 Traditional manual processes • Error prone. • Labor intensive = expensive. • May limit, but will not protect, from audit penalties.

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SALES TAX COMPLIANCE = PAINFUL PROCESS  Determining taxability can be very complex.  All businesses must comply, in at least one state. Process is time consuming, laborious and manual.  Average SMB spends four FTE-days each month on sales tax compliance; increases exponentially when audited.  Mid size companies may even have one or more fully dedicated FTE  Studies show companies of all sizes spending a weighted average of 3.1% of taxes collected on their compliance efforts (an average of 2.17% for companies with revenue exceeding $10MM) •

With an average tax rate of 6.5%, this is a cost of 0.2% of revenue generated from all taxable sales

 Exactor Suite -- inexpensive, easy-to-use, automated sales tax compliance solution.  Security and reliability are assured by Streamlined Sales Tax Project (SSTP) seal of approval. EXACTOR Confidential

THE EXACTOR SOLUTION  Exactor provides a powerful end-to-end solution enabling businesses of any size to: • • • • •

Determine / calculate tax obligations in real time (ExactorCalc) Prepare / File Reports and collect / remit payments to the appropriate tax authorities (ExactorFile) Track the life cycle of transactions (ExactorTrack) Manage and apply exemptions (ExactorExempt) Prepare reports for auditing (ExactorAudit)

 Exactor enables businesses to easily outsource their sales tax compliance functions. • • •

Exactor’s ASP architecture enables businesses to enhance their financial ERP systems, shopping carts, etc. to include the proper sales tax within the sales transactions. Exactor provides easy wizards to instantly add sales tax functions into popular systems such as QuickBooks, OS Commerce, etc. with a few clicks of the mouse. Exactor allows merchants to monitor the status of the sales tax cycle via a suite of online reporting tools.

 Exactor’s modular ASP service • • •

Allows customers to pick and choose the modules that best fit compliance needs. Always keeps customers up-to-date with the latest tax rules without any client side updates . Enables exactor to provide a cost-effective service to a high volume of customers. EXACTOR Confidential

INFORMATION & DATA FLOW State & Local Tax Agencies

Financial Systems

E-commerce Shopping Carts

POS Terminals

Exactor Calc Engine

PPS Centralized System EXACTOR Confidential

Exactor Reporting Engine

Merchant Management & Admin

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PRODUCT ADVANTAGES  Single solution to address all compliance needs.  Minimal cost of integration & implementation.  Only product to seamlessly bridge between e-commerce transaction engine and accounting systems.  Single point of audit.  Reconciliation to general ledger, no numbers left hanging.  Automation of manual processes.  Potential tax exposure reduced.  Compliance tool (SOX compliance).  System evaluated applying standards in compliance with NIST and ISO 17799 • SAS 70 compliance audit.

 Real time, fully automated reporting & filing system. EXACTOR Confidential

WHO IS EXACTOR    

First fully automated end-to-end sales tax solution Service in production since 2006 One of three CSPs certified by the SST Systems tested for accuracy, security, and efficacy • Applied standards set by NIST, ISO17799 and SAS70 • Independent ISO17799 review

 Certification – highest seal of approval in the market  Engine chosen to power Sales Tax services offered by: • MasterCard • Paychex

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THANK YOU!

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