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Corporate Overview June 2008 – Confidential
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Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

Mar 26, 2015

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Page 1: Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

Corporate OverviewCorporate Overview

June 2008 – Confidential

Page 2: Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

Quorum Confidential

2

Company OverviewCompany Overview

HighlightsThird largest supplier of Dealership Management Systems to GM dealerships in Canada.233 Dealerships have already chosen XSELLERATOR™.Selected as the new technology choice under GM’s Integrated Dealer Management Systems (IDMS) initiative in North America.Microsoft Strategic Partner for North American automotive (MS - Gold Certified and ISV-Managed Partner).Currently supported OEM integration: all GM franchises, Chrysler, Isuzu MD, Hyundai Canada and Kia Canada.Active Member of the Standards for Technology in Automotive Retail (STAR) initiative of the National Automobile Dealers Association (NADA).

Market FocusExclusively Automotive Retail, North America.

Page 3: Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

Quorum Confidential

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Experienced Management TeamExperienced Management Team

Maury Marks, B.Mgt., C.A. – founder – 15 + years in automotivePresident & CEO

Mark Allen, M.B.A. – 20+ years with GM and EDS ARG Vice President – Sales, Marketing & Services

Dan Ichelson, B.Sc., M.B.A. – 10 + years in automotiveVice President, Support & Development

Jeff Sharpe, C.A. Chief Financial Officer

Page 4: Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

Quorum Confidential

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Key MetricsKey Metrics

Category (counts in RT’s) 2007 2008 ‘08 US

‘08 CA

Total Customer Count –

installed or signed201 June 233 49 188

Net New Installs 29 40 20 20

IDMS Customers 100 200 50 150

Migrations (SQL Server) 38 55 10 45

Integration Projects 2 June 10

Last Quarter Support Revenues

(in 000’s)1,200 1,450

Page 5: Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

Quorum Confidential

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Sales GrowthSales Growth

Strategic Pieces in Place:

49 US Dealerships – transact in 26 US States

GM Integration – delivering 1st of 10 integration points – finally!

Chrysler – integration running in 3 dealerships

Business Transformation process underway – to significantly improve our implementations scale

R&R IDMS Exit – July 31st deadline

Page 6: Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

ForecastForecast

Sales($ Millions)

Q1 Q2 Q3 Q4 2008

Installs / Migrations $0.29 $0.70 $0.85 $0.90 $2.74

Support $1.22 $1.25 $1.32 $1.45 $5.24

Integration / Services $0.16 $0.25 $0.31 $0.31 $1.03

Total Sales $1.67 $2.20 $2.48 $2.66 $9.01

INSTALLS 2 10 13 10 35

Page 7: Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

ForecastForecast

Notes: - Integration / Services in 2006 includes $1.1 Million in one-time Palm Revenue - Dramatic Improvement in Cash Management in fourth Q 2007- US Ready for increased sales in 2009 with GM IDMS Integration, Chrysler Integration, Transformed

Implementation Approach, Cash Flow positive organization- Higher margin support revenue drives EBITDA

Sales($ Millions)

2006 2007 2008 2009 2010

Installs / Migrations $3.3 $3.3 $2.8 $4.0 $6.0

Support $2.8 $4.2 $5.2 $6.5 $8.0

Integration / Services $1.3 $0.7 $1.0 $2.0 $3.0

Total Sales $7.4 $8.2 $9.0 $12.5 $17.0

EBITDA ($) -$3.7 - $1.5 $0.5 $2.5 $5.0

EBITDA (%) -50% -18% 5% 20% 29%

Page 8: Corporate Overview June 2008 – Confidential. Quorum Confidential 2 Company Overview Highlights Third largest supplier of Dealership Management Systems.

Quorum Confidential

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