SPM Overview By Doug Erb, Partner and Co-Founder, Canidium September 23, 2011 Confidential

Topics Introductions Traditional solution selection plan and deliverables ROI Drivers to focus on How to distinguish demo from reality Confidential2

Canidium 100% focused on the Sales Performance Management (SPM) market Financially stable with responsible, profitable growth 40+ Consultants; average 10+ years of experience in the SPM market Houston-based with projects throughout the country Experience in Financial Services, Insurance, Life Sciences, Retail, Technology and Telecommunications 50+ clients all of which are referenceable Unbiased, value added services assist clients through the full SPM lifecycle Confidential3

Doug Erb Erb brings more than 13 years of experience architecting and implementing sales performance management solutions to his role as Partner and Co-founder of Canidium LLC. He started the company in 2008 after spending 10 years working in the variable compensation field as a consultant and lead for plan design and implementation. Throughout his career, Erb has developed highly successful compensation and testing team’s specific to his field. He has a wide variety of experience in several industries including Automobile, Banking, Insurance, Manufacturing, Retail and Telecommunications. Erb possesses an extensive working knowledge in the deployment of compensation software with hands-on experience of Callidus, Iconixx Software, Oracle, Varicent and Versata. Erb is also personally responsible for spear-heading the training and knowledge transfer to several high-level organizations in and around the Houston area. Confidential4

TRADITIONAL SOLUTION SELECTION Confidential5

Modeling and Analysis Calculation, Payments, Draw Mgmt Storage, Auditing, Repeatability, and Flexibility Automated Reporting, Performance Tracking Calculation Engine Transaction Manager Incentive Pay Data Calculation Rules Online Reports for Sales and Management Performance Dashboard Advanced Analytical Tools Coaching, On Boarding Channel Management SPM vs. ICM Confidential SPM: How can we drive revenue? vs. ICM: How can we save money? 6

Determine Business Drivers Develop Business Case Identify Candidate Solutions Assess Develop High- level Requirements Evaluate Current Processes Determine Vision State Final Presentation to Steering Committee Discovery Phase Solution Definition Phase Business Case / Roadmap Perform Gap Analysis Gain Approval Assess Select Implement Prepare and Change Manage Validate Managed Services Confidential7

Refine / Confirm Requirements Conduct and Evaluate Onsite Demos Create and Distribute Demo Scripts and Data Select Determine Short List of Vendors Confirm Vendor Candidates Create and Distribute RFP Evaluate and Score Responses Make Selection and Negotiate Assess Select Implement Prepare and Change Manage Validate Managed Services Confidential8

Select Project Deliverables Vendor Evaluation Scorecards RFI/RFP Development Vendor Demonstration Scripts Final Evaluation Document Implementation Overview for Selected Vendor Confidential9

Sample Project Plan* Confidential10 *This is not a complete project plan.

Sample Scorecard Confidential11

Sample Results What is important to you? Confidential12

Market Dynamics Extremely competitive market – 4-5 vendors (in some cases more) are in most deals – Segmentation – Globalization – More downward price pressure – Integration/partnership with other areas (ex. Revenue Management) Confidential13

ROI DRIVERS TO FOCUS ON Confidential14

Current State Evaluation Logical ROI – Overpayment – Late commission payments – Late to market plan changes – Sales personnel attrition – Difficulty in payment dispute resolution – Product or service rollout delays – System infrastructure cost savings Confidential15

Monetizing Costs and Deficiencies – Shadow accounting Salary cost formula = (avg.rep salary) * ((8 – 24 hrs/mo * 12 mo) / 2000 hrs/yr) * (no. of sales reps) Unrealized revenue = ((8 – 24 hrs/mo * 12 mo) / 2000 hrs/yr) * (total revenue) – Commission Overpayment Overpayment cost = overpayment rate * total commission paid Confidential16

Monetizing Costs and Deficiencies (cont.) – Excessive Administration Costs – Excessive Sales Personnel Turnover – Payment Disputes Annual Dispute costs Annual Dispute lost revenue Confidential17

ROI Presentation Tips Confidential18 – Know your organizational ROI guidelines – What is the required payback period? – Is there a specific percentage required? – Don’t overstate numbers – Keep it simple

Sample ROI Confidential19

HOW TO DISTINGUISH DEMO FROM REALITY Confidential20

Tricks of the Trade Backdoor references Full process observation (see what it really took) Have them start from scratch Know the vendor – Who fits your company culture Know who’s implementing Confidential21

Thank you! For more information, please contact: Doug Erb Confidential22