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EZ NUMBERS TERMS & CONDITIONS / DISCLAIMER

EZ Numbers, LLC has worked very hard to make EZ Numbers the most easy-to-use, comprehensive, error-free business model tool available and to make it adhere to all applicable guidelines. It is, however, provided strictly on an "AS IS" basis. EZ Numbers, LLC, can take no responsibility for errors, omissions, accounting or taxation conventions used, the user's inability to obtain funding, etc. It is solely the user's responsibility to check for: 1) Calculation errors which may provide inaccurate results. 2) Overall appropriateness of the EZ Numbers to the user's specific business. 3) Compliance with all applicable IRS, GAAP, and SEC guidelines. Links for more information for these entities is provided here for your convenience: www.irs.gov/businesses/small/index.html http://cpaclass.com/gaap/gaap-us-101.htm www.sec.gov/info/smallbus.shtml That said, we hope EZ Numbers helps you grab the brass ring.

EZ Numbers Navigator EZ Numbers gives you real-time feedback on every number you enter. This immediate feedback helps you understand your business much better. You can see above what each component does. Try it out once you get started, and you'll find it a powerful yet simple tool that's at your disposal on every sheet. We're confident that you'll benefit from the real time feedback the EZ Numbers Navigator provides. We've had a lot of customer feedback saying that they really learned their business for the first time when seeing the effect of each and every input as they made it. Help Options Click Help on any sheet for information specific to that sheet. You can also go to www.eznumbers.com/support.html for FAQs and a Glossary. For help configuring EZ in Excel: www.eznumbers.com/excel2007.html www.eznumbers.com/excel2003.html Input conventions Input cells are light blue Many of them will turn darker blue when you enter a number, which makes it easier to spot at a glance which cells have input. EZ Numbers also allows you to over-write formula cells. Formula cells, which automatically make calculations for you, are light green, and won't turn a different color if you enter a number, but can be customized. Freeze - Unfreeze Excel lets you "freeze" the window to keep part of it in the same place while you scroll other areas. EZ Numbers automates this for you throughout various sheets. Optional Inputs Startup: -Historicals - Where you enter information for existing companies -Taxes - Where you can modify corporate tax rates Loans: -Manual / Line of Credit - No monthly payments, interest-only, etc. -Grants - Money with no repayment or equity Investment: -Dividends - How you give money to C Corp investors -Distributions - How you give money to S Corp and LLC investors Accounting Conventions EZ Numbers uses GAAP (Generally Accepted Accounting Principles). Some items of note include: Accrual Basis EZ Numbers uses the Accrual Basis as opposed to the Cash Basis. This means that revenues are included on the Profit & Loss Statement (P&L) when they are earned not necessarily when they are received. Your Cash Flow Statement serves to reconcile this difference with Accounts Receivable and Accounst Payable. Company Type / Taxes You can select either C Corp, S Corp, LLC, or LLP depending on what's best suited for your business. EZ Numbers will calculate and deduct taxes if you select "Yes." Capital Expenditures vs. Operating Expenses Capital Expenditures are "big ticket" items such as land, buildings, furniture, equipment, etc. The thinking is that if purchase an asset, such as a building, in Year 1, not all of the cost should count against your profit in that year because you will use that same asset in other years. This allows you to show a profit sooner by spreading the cost over more than one year. Operating Expenses are your typical costs such as rent, utilities, travel, etc. Depreciation (used for Tangible Assets - equipment, furniture, etc.) EZ Numbers uses MACR (Modified Accelerated Cost Recovery) which allows you to deduct a greater portion of your capital expenditures in the early years than you could under the Straight Line method. With computer software, however, you typically employ a three year Straight Line depreciation schedule. This is displayed on Startup. Amortization (used for Intangible Assets - licenses, intellectual property, etc.) You can also depreciate intangible assets using Straight Line amortization. You can find detailed Help for each sheet by clicking Help. Here are some of the most common questions we get here at the worldwide EZ Numbers Headquarters: Q: How do I get money to investors? A: There are three ways to pay off investors: 1. Dividends / Distributions (Dividends are for C Corps, Distributions for S Corps, LLCs, and LLPs) 2. Revenue / Profit Share 3. Pro Rata share of proceeds of company sale Each of these is found in Investment. Q: What is Least Cash / Shortfall on the EZ Navigator on the top of the screen? A: This is simply the lowest ending monthly cash flow balance. Q: What if I have more than 50 products or services? A: Since you presumably won't be displaying each of your more than 50 revenue lines on the P&L, you'll need to put them in categories. What you can do is import your own custom revenue model sheet where you track as many revenue and COGS lines as you want. Then place them into up to 50 categories. Then from the Revenue and COGS cells on Sales, link to your monthly amounts. This data will then flow through to the P&L and throughout the EZ Numbers model. You can also link to your own custom monthly values for Bad Debt & Returns, Commissions, Royalties, and Inventory.Complete instructions for this are provided on Sales. Q: How do I purchase an asset before Month 1? A: Enter a negative month number up to -24 in either the Depreciation or Amortization sections. Q: How do I lease an asset that will be depreciated? A: Enter the acquisition on Startup. Then on Loans, enter a loan for the same amount with the same start month.

Congratulations! You now have the world's easiest and most powerful software to make your custom pro formas. As you can see from the App Map to the right, all you need to do is enter data in the Input screens, and the Results screens (pro formas, etc.) are made automatically for you. Watch the demo movie, read the instructions, or get started right away. You'll get the hang of EZ Numbers in no time. Good luck with your business! The EZ Numbers Team

General Instructions Don't worry, you don't need to know accounting or how to use Excel, the only thing you need to know is your business. EZ Numbers has a proprietary method of laying out how you enter your business numbers. The six input screens are grouped into Costs and Resources: INPUT Costs (where you spend money) -Startup (Capital Expenditures) -Expenses -Personnel Think of Costs as the Weight on your business. Resources (where you get money) -Sales -Loans -Investment Think of Resources as the Thrust on your business. The more thrust you have, the more weight you can support. RESULTS Diagnostics -Assumptions -Analysis -Breakeven Pro Formas: -P&L -Cash Flow -Balance Sheet Overall Reports: -Investors -Reports EZ Numbers Navigator

Startup