1. Company Confidential Leverage Your E-Business Suite as Part of Your Sales Performance Management Strategy January 17, 2008

2. Company Confidential Agenda Xactly Overview On-Demand Sales Performance Management Best Practices for Sales and Finance Integration Q&A Mark Bowman Xactly Corporation

3. Company Confidential About Xactly Leader in on-demand sales compensation and sales performance management Target companies with 2,000 or fewer payees Focused on automating key business processes for finance and sales World-class management team with 30+ years of combined domain experience Significant customer and partner traction Pioneering a New Paradigm in Automating Sales Performance.

4. Company Confidential On-Demand Hosted Repository Automating the Process of Sales Performance Management HR/Payroll Processing Sales Compensation Analytics Product Profitability Analytics Customer Analytics Sales Performance Analytics

5. Company Confidential Delivering Cross-Functional Value Sell more of the right stuff Improve sales behavior Forecast and automate incentives Increase profits Real-time visibility commission statements, Contests, SPIFs Easy automation of complex compensation plans Reduce errors Comply with Sarbanes-Oxley Route and track compensation plans and certification letters Model and analyze plan changes 100% on-demand delivery True multi-tenant solution with SAS 70 Type II certification No software or hardware to support Cost-effective, pay-as-you go subscription fees Seamless data integration SalesFinance IT

6. Company Confidential Experiencing the Benefits

7. Company Confidential Flexible, rules-based compensation engine Intuitive compensation plan design, implementation and maintenance Real-time visibility into incentive compensation plans: commissions, bonuses, draws, SPIFs Real-time “what if” calculations Web-based reporting for the entire organization Plan Document and Certification Letter configuration, routing and tracking Integration with leading on-demand CRM applications Benefits Increase profits Increase sales effectiveness Gain competitive advantage Reduce TCO Comply with Sarbanes-Oxley

8. Company Confidential On-Demand Sales Performance Management Company Confidential

9. Sales Performance Management: Four Core Process Components Monitoring and Analyses Territory Management Sales ICM Quota Management What's Going On? What to Expect? How Am I Going to be Rewarded? What's My Role? To Whom do I Sell? What do I Need to Sell and How Much? Source: Gartner

10. Company Confidential Quota Territory Price Execution Forecast/ Planning Reporting & Analytics Workflow Sales Comp Rewards & Incentives Credit Assignment On-Demand Sales Performance Management Business Data

11. Company Confidential Best Practices for Sales and Finance Process Integration Company Confidential

12. Best Practice #1: Automate the Process of Collaborative Communication & Compliance Automate the process of creating, routing and approving compensation plans, certification letters and other sales documents Review and approve incentive payments before releasing to payroll Provide sales management visibility into individual, group and company performance Resolve issues quickly with a single point of reference for compensation and sales performance Easily audit payments to order details Enhanced regulatory compliance support

13. Company Confidential Best Practice #2: Provide Immediate Response to Stakeholders Proactively manage disputes and foster trust with stakeholders Enable fast and proactive responses to ever-changing market conditions Provide sales and finance real-time Web-based visibility Motivate sales through real-time incentive estimations and sales performance analytics Enable easy and auditable communication between the sales team and administrators such as real-time chat Facilitate sales team blogs for sharing best practices

14. Company Confidential Best Practices #3: Proactively Manage Credit Allocation for the Channel Manual Process Collect data from partners Cleanse data Assign credits to channel partner Feed to spreadsheet Eventually reps get paid Company Dealers/VARsDealer Reps Territory Product Named account Vertical market Geo Existing Customer

15. Company Confidential Streamline and Automate Channel Sales Compensation Automatically collects POS data Automatically assigns sales reps and teams based on your rules Reps get Web-based visibility Timely payments Visibility into channel performance Company Dealers/VARs Dealer Reps

16. Company Confidential Create Multiple Model Scenarios Organization Compensation Plan LowHighRate Tier 1 0502% Tier 2501003% Tier 31001254% Tier 41255% Orders YTD Order 121 $4,500 1/1/06 J. Doe Order 159 $3,205 1/2/06 J. Doe Order 167 $9,100 1/5/06 J. Doe Order 198 $1,500 1/6/06 J. Doe Order 223 $4,580 1/9/06 J. Doe Organization 1 LowHighRate Tier 1 0402% Tier 240903% Tier 3901204% Tier 41205% Compensation Plan 1 Projected Orders Order 991 $4,500 8/1/06 J. Doe Order 992 $3,205 8/2/06 J. Doe Order 993 $9,100 8/5/06 J. Doe Order 994 $1,500 9/6/06 J. Doe Order 995 $4,580 9/9/06 J. Doe Compensation Plan LowHighRate Tier 1 0502% Tier 2501003% Tier 31001254% Tier 41255% Orders YTD Order 121 $4,500 1/1/06 J. Doe Order 159 $3,205 1/2/06 J. Doe Order 167 $9,100 1/5/06 J. Doe Order 198 $1,500 1/6/06 J. Doe Order 223 $4,580 1/9/06 J. Doe OrganizationOrganization 2 LowHighRate Tier 1 0402% Tier 2401003% Tier 31001204% Tier 41205% Compensation Plan 2 Projected Orders Order 991 $2,500 9/1/06 J. Doe Order 992 $3,205 9/2/06 J. Doe Order 993 $4,100 9/5/06 J. Doe Order 994 $5,500 9/6/06 J. Doe Order 995 $6,580 9/9/06 J. Doe Compensation Plan LowHighRate Tier 1 0502% Tier 2501003% Tier 31001254% Tier 41255% Orders YTD Order 121 $4,500 1/1/06 J. Doe Order 159 $3,205 1/2/06 J. Doe Order 167 $9,100 1/5/06 J. Doe Order 198 $1,500 1/6/06 J. Doe Order 223 $4,580 1/9/06 J. Doe OrganizationOrganization 3 LowHighRate Tier 1 0402% Tier 2401003% Tier 31001505% Tier 41506% Compensation Plan 3 Projected Orders Order 991 $7,500 7/1/06 J. Doe Order 992 $2,205 7/2/06 J. Doe Order 993 $7,100 7/5/06 J. Doe Order 994 $4,500 7/6/06 J. Doe Order 995 $3,580 7/9/06 J. Doe Best Practices #4: Provide Informative Modeling

17. Company Confidential Best Practices #4: Provide Informative Modeling Calculate Results Based on Scenarios & Analyze Projection 1 Projection 2 Projection 3

18. Company Confidential Best Practice #5: Provide Seamless Integration to Front- and Back-end Systems Ensure seamless connectivity to CRM and other sales and finance applications Facilitate easy transfer of compensation data for payroll processing Provide connectivity to all major front- end and back-end systems in the Sales Performance Process

19. Company Confidential Integration with Siebel CRM On Demand and others

20. Company Confidential World’s first on-demand SPM integration platform that connects any system to Xactly Systems Connect customer and sales data with other enterprise systems and business processes Data

21. Company Confidential Seamless Connectivity to Any Payroll Processing Provider Provide accurate and efficient incentive payment processing Provide seamless connectivity to all payroll processing providers via easy to use Xactly Payroll Navigator™ Ability to create and configure multiple payroll templates for immediate payroll processing

22. Company Confidential Eight Requirements for Effective Sales Performance Management Secure, hosted repository with actionable post-sales business data 1 Intuitive compensation plan design, implementation and maintenance 2 Rich analytics, reporting and dashboards for sales and finance analytics 3 Ability to model and forecast compensation plan changes in advance of implementing 4 Integration with CRM applications for visibility and insight into sales opportunities in the pipeline 5 Ability to automate quota allocation and analysis based on territory goals 6 Optimize pricing strategy and execution by identifying and analyzing what products have been sold 7 Motivate and reward performance through automated sales contests and SPIFs with non-cash rewards 8

23. Company Confidential Call or visit our web site to learn how to: http://www.xactlycorp.com 1-866-GO-XACTLY