9/15/ Cloud Computing “ Plug & Work” IT Applications Redefining the HR Outsourcing Model Reduce Cost, Engage Employees, and Scale Infrastructure © 2011 Exponent Technologies, Inc. Fidel Baca, Principal / CMO ExponentHR

Our History /15/2015 © 2011 Exponent Technologies, Inc. 2 Larry Lacerte develops first GL Software First Tax Software First IRS Electronic Filing Beta First laser Tax Forms for HP First common Tax Prep Library First CD-ROM technology for Tax Prep First Complete Tax Software library and documentation with REP capabilities via CD First hosted Pay-as-you-go system (REP) Sold Lacerte Tax Software to Intuit for 400+ million..Today 1 in 4 returns still prepared using Lacerte First DOS/WIN cross-compatible platform Larry Lacerte starts ExponentHR

ExponentHR -- Organization  Privately held and funded by Larry Lacerte  Founded in 1978 by Larry Lacerte o As Lacerte Software Corporation (GL and Tax) o Sold Lacerte Tax Software to Intuit in 1998 o Started ExponentHR in 2001 Changed name to Exponent Technologies, Inc.  Founding team for ExponentHR o Larry Lacerte, President / CEO o Randy Zeller, EVP / CFO o Fidel Baca, Principal / CMO 9/15/2015 © 2011 Exponent Technologies, Inc. 3

What we were solving for…  Lack of granular/stratified cost management data  Inability to view or correlate critical data sets  Inefficient transactional processes with no audit trail  Inability to engage with distributed workforce  Inability to scale current infrastructure  HR unable to focus on valued business contribution  Desire to outsource the HR function… 9/15/2015 © 2011 Exponent Technologies, Inc. 4

Challenging Myths and Mindsets  ‘HR is a cost center, not a critical part of the operation, and we don’t spend on HR technology for our business…’  ‘We need to keep our systems in-house to secure our data and integrate with other systems….’  ‘Employees are dumb, untrustworthy, or won’t self service...’ 9/15/2015 © 2011 Exponent Technologies, Inc. 5

Evolving Environments 9/15/2015 © 2011 Exponent Technologies, Inc. 6 Employee Manager Service Center HR Manager Employee In-house applications HR Employee Finance HR Finance Data Rules Workflow Manager Employee HR Manager

Where is HR Focus and Value 9/15/2015 © 2011 Exponent Technologies, Inc. 7

Process vs Data Storage 9/15/2015 © 2011 Exponent Technologies, Inc. 8 Balance Validation Discuss Data to Payroll Request Generat e Reports Reports to Manage rs Data Rules/Audit Workflow Notification s Reporting Employee Request Paper Request Finance Accountin g Human Resource s Manager Approval Reports to HR Reports to Finance Process Payroll Enter in Payroll Audit Transaction s Update Balance Sheet

Anywhere, Anytime, Secure Access 9/15/2015 © 2011 Exponent Technologies, Inc. 9 Data Rules Workflow Single Application Multi-tenant

Business Model Benefits 9/15/2015 © 2011 Exponent Technologies, Inc. 10  Benefit of fixed cost combined with recurring revenue  Development  Pricing  Extensibility

 Enhancements expand platform and value  Standardized servicing  Prices come down over time  Variable configurations  Opportunity to enhance processes Benefit to Clients 9/15/2015 © 2011 Exponent Technologies, Inc. 11 Service Cost Service Capabilities

 Multi-tenant platform o Lower cost delivery o Highly configurable o Highly scalable o Extensible features  Cloud-based o Anywhere, anytime access o Any browser device o Provides logistical and process opportunities SaaS Platform Benefits 9/15/2015 © 2011 Exponent Technologies, Inc. 12

Scope of Offering 9/15/2015 © 2011 Exponent Technologies, Inc. 13  HR & Benefits  Time / PTO / Payroll  Job Costing  Expense  Communication  Reporting  ???????????????

Timeline /15/2015 © 2011 Exponent Technologies, Inc. 14 Market Research Business Plan and Platform Design Proof of Concept Platform and Beta Clients Development of Sales Model and Implementation Methodology Direct Marketing in the 200 – 2,000 Space Direct Marketing in the 50 – 5,000 Space Direct Marketing Combined with VAR Distribution Model Enhanced Engine Expanded Regional Presence and adjusted price to market BI Expansion Web Services Expanded VARs Pricing Adjustment Continue with Product Plan Adjust staffing model and operating cost for economic conditions Began building client side configuration tools for market expansion Growth (400) Attrition (15)

Success Stories  Nearly 400 organizations, representing over 80,000 worksite employees in nearly every industry… 9/15/2015 © 2011 Exponent Technologies, Inc. 15