PARTNER SUCCESS KIT

Danielle KernerDirector of Partner Channel Development

+1-757-461-3022 ext. 118danielle@xTuple.com

"Struggling to meet ever-changing partner requirements, while trying to maintain decent margins? We are rewriting the 'rules'

of ERP software at xTuple. Let's talk today."of ERP software at xTuple. Let's talk today."- Danielle Kerner

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COLLECTIVE BRAINPOWER

Ned Lilly, xTuple President, CEO, Co-Founder

At xTuple, our products — and our successes — are the result of Collective Brainpower. It’s what makes us different.

Years ago, we saw traditional, industry-leading companies lose touch with customer needs, while increasing software costs beyond reason. Commercial enterprise resource planning (ERP) software had lost itsway. Many of those companies have been bought and sold numerous times over now, and customers are worse off than ever.

Meanwhile, in the rest of the technology world, the phenomenon of open source software gained traction:global communities of highly skilled users, collaborating in unprecedented ways, worked to improve the software they all used. At xTuple, we wondered: Why couldn’t this work for ERP?

For more than a decade, we’ve built a new kind of software company. One that channels the knowledge and professional experience of our customers and partners directly into product development. One that’s rooted in a humility that recognizes the contributions of tens of thousands of ERP professionals worldwide — properly channeled — can make a better product than any one company, no matter the size. (How else could we challenge — and win — when competing with SAP, Oracle, Microsoft, Sage and Infor?)

Let us tell you more about the Collective Brainpower of xTuple, so we can grow together.

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PARTNERSHIPLADDER

xTuple represents a strong brand, quality products, a global community and a Partner-friendly reputation with competitive commissions, abundant training and sales and marketing support.

Over the past several years, xTuple has grown steadily, and profi tably — as a company, a product and as an open source community. Put this Collective Brainpower to work for you as an xTuple Partner:

Sales Affi liateEntry-level rung on the Partnership Ladder for those who cannot commit much time to xTuple — yet. Commissions paid at 10% for every lead closed as an xTuple-direct sale. No costs, no classes, no commitments. An opportunity to make money talking about the best business management software in the world today — with no strings attached.

Developer Affi liateSoftware developer(s) who have an application to interface with xTuple products but do not wish to sell, bundle or embed our solutions. Comparable to a traditional, basic Independent Software Vendor (ISV) partner program. No commissions, just developer-to-developer support to help with the integration. Earn with your software listed on the xTuple xChange, our online global marketplace.

Authorized ConsultantFocused on delivering professional services, not selling. Cost is equivalent to the “xTuple: Setup, Confi guration and Operation” 5-day training class. Receive direct helpdesk support plus two licenses of the full commercial products for your internal use. Level for open source “purists” who only work with free PostBooks Edition or independent consultants who wish to represent products from multiple vendors.

Solution ProviderSignifi cant commissions at this mid-level — earn up to 45% on sales of all published xTuple products and services. Includes all benefi ts of the Authorized Consultant plus three additional commercial licenses for internal use. Earn even higher commissions for customers you acquire. (see Over Achiever Club)

Development PartnerTargeted at those who want to develop and distribute derivative software products — for example, a specialized accounting package for a particular industry you know well. Includes a seat at our in-depth Power User Training class — and higher commissions, too. Earn up to 50% on xTuple products and services and 70% on xChange sales of your xTuple extensions.

Gold Solution ProviderPremium level of the partner program for the established company interested in providing xTuple ERP as SaaS (Software as a Service) and/or intends to close more than the modest “Over Achiever Club” target of $200,000 in gross sales for xTuple each year. May provide additional managed services along with their hosted xTuple service. Earn up to 55% in general commissions and 80% on xChange sales of your extensions.

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PARTNERTESTIMONIAL

xTuple is different – a real company behind the software, based in the U.S., the epitome of a powerful ERP solution for my customers. The months I spent testing the free PostBooks version was impressive, as was the power of the commercial versions.

Most other solutions I reviewed had major gaps in usability and/or functionality, such as tax tables, accounting standards, reports and other business critical capabilities.

Years later, I know I made the right choice to partner with xTuple – a passionate team whose leadership has real vision for the future. I feel energized by so many people who are excited, enthusiastic and proud of the product they have developed – the modern version of a building a better mousetrap, with a mission to help other businesses grow, too!

True SynergyAt Aeona, we’re very impressed as to xTuple’s responsiveness to customers and partners. That’s important because we are trying to achieve the same thing: delivering great value to our customers, as a team. It’s a synergistic relationship I’ve not found with other software vendor/partner relationships.

Customer FocusxTuple is not a publicly held corporation, so priorities are not focused on bringing value to shareholders, they are focused on delivering value to customers. That makes a real difference in decision-making for product development and pricing.

Complete, user-friendly audit trail capability that facilitates regulatory and standards compliance.

Tracking of issues, notifi cations and tasks as a core part of the system.

Communications and notifi cations via email generated and sent automatically.

Reports and forms created and maintained by OpenRPT, xTuple’s free report writer.

Lower learning curve with information where needed.

CRM completely integrated into the ERP system - not an additional module.

E-commerce and customer support portal that’s well-built, tightly integrated and open source.

Strong feature sets for manufacturers, distributors and service companies.

Bill EvanikoffxTuple Solutions Provider

Shrinking IT and software budgets had a huge impact on my business, a direct result of the early 2000s’ economic downturn. What to do? I researched Open Source ERP solutions to discover a viable alternative. My technical side liked having source code access, while my sales side preferred that more of my customers’ money would pay for my services rather than a vendor’s licenses and maintenance.

Phil McIntoshxTuple Authorized ConsultantMember 90Minds.com

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Your CommisionPartner-generated Leads xTuple-generated Leads

xTuple xChange Store/Online MarketplaceSales of Your Extensions

Seats at Training IncludedSetup, Confi guration and OperationsPower User TrainingDiscount on Extra Seats

Support Included Direct Partner SupportTier 2/3 Customer Support

Sale of Closed-Source Derivative ProductEligible to Private Label

Host Private SaaS ServerEligible to Host

Licenses — Internal Use OnlyLicenses Available

Named Support Contacts Total

Partner Fees — Paid AnnuallyUS Dollars Per Year

Partner Fees — Paid Monthly US Dollars Per Month

“Over Achiever Club” — No Mandatory Sales GoalsAfter the following criteria is met: Gross Sales to xTuple (USD)Training seats to sell

Begin Earning +5% CommissionPartner-generated Leads xTuple-generated Leads

Partner Fee WAIVED After 150% of Non-Mandatory Sales Goal is met:Gross Sales to xTuple (USD)

Note: Monthly payment option available with ACH direct from a U.S. bank account only.

xTuple-generated Leadsn/an/a

50%

one—

25%

Yes—

—

—

2

one

$2,000

$200

——

——

—

Sales of Your Extensions 50%

Setup, Confi guration and Operations onePower User Training —Discount on Extra Seats 25%

Direct Partner Support YesTier 2/3 Customer Support —

Eligible to Private Label —

Eligible to Host —

Licenses Available 2

Total one

US Dollars Per Year $2,000

US Dollars Per Month $200

Gross Sales to xTuple (USD) —Training seats to sell —

Partner-generated Leads —xTuple-generated Leads —

Gross Sales to xTuple (USD) —

40%20%

60%

one—

50%

Yes—

—

—

5

two

$3,500

$350

$80,000one

45%25%

$80,000(150%) = $120,000

45%25%

70%

oneone50%

Yes—

Yes

—

10

three

$5,600

$500

$150,000two

50%30%

$150,000(150%) = $225,000

50%30%

80%

oneone50%

YesYes

Yes

Yes

15

four

$7,500

$750

$200,000three

55%35%

$200,000(150%) = $300,000

COMPENSATIONSCALE

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PRODUCTSPECIFICATIONS

All Editions of xTuple business management software use the same client software and core code. Upgrading from one version to another is as simple as running a two-minute script on your database.

PostBooks® — Free and completely open source, entry-level offering suitable for any small business. Distribution — Specifically for the electrical, HVAC, plumbing and industrial wholesale distribution market.Manufacturing — Recommended for make-to-order, make-to-stock and mixed mode manufacturersEnterprise — Premium solution for growing businesses, includes functionality of all products, an outstanding value.

Database Reporting

International Language Packs

Contacts

Opportunities

Incidents/Trouble Tickets

To Dos/Tasks

Quotes / Sales Orders (SO)

Receivables / Payables

Purchase Orders (PO)

General Ledger

Shipping/Receiving

Inventory (Single Warehouse)

Item Master Information

Bills of Materials (BOM)

Work Orders

Project Management

Multi-Currency

Financial Reporting

Multi-Locations in Warehouse

Assemble-to-Order Configurator

Kitting

Time and Expense Tracking

Multi-Company Financial Consolidation

Multi-Warehouse Inventory

Warehouse Transfer Orders

Lost/Serial Control

Item Transformations

Returns Service Management

Revision Control

Sales Order Reservations

Drop-Ship Purchasing

Requirements Planning (DRP/MRP)

Lean/Constraint Management

Multi-Level MRP

Master Production Schedule (MPS)

Bill of Operations (BOO)

Breeder BOMs - Process Mfg.

Capacity Planning

Integrated 3rd Party Product/Pricing Service

Advanced Sales Margin Handling

Sales & PO Sequence/Structure Flexibility

Issue Inventory / Ship Directly from SO

Vendor Special Pricing Agreements w/Contracts

Budget/Financial Reporting by Project

xTupleCommerce Web Portal

xTuple Connect - Email, EDI, Integration

Enhanced Commissions

Fixed Assets Mgmt, Depreciation, Maintenance

Catch Weight

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PRICEPOINTS

Annual Pricing

Per User, Per Year

Perpetual License If you prefer a Perpetual License, simply pay once for the license (per user), and Annual Maintenance is priced at 10% of the then-current Perpetual License price. Maintenance is required for the first year and highly recommended afterward (maintenance is required to be eligible for support from xTuple or its Partners).

Per User

Cloud License — $100 base per month plus:

Per User, Per Month

Discounts Pricing is discounted at 1% off the cost of every user for a 10-user purchase, 2% for 11 users, etc., up to a 45% discount for 54 users and up.

(FREE) (COMMERCIAL)

—

—

—

$400

$1200

$70

$800

$2400

$110

$1200

$3600

$150

$1500

$4500

$180

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How do partners make significant commissions when the software is offered free?Yes, the PostBooks® Edition is available for free. Many of our partners make a good living offering professional services and support for PostBooks® alone. However, sales of the commercial versions of xTuple pay generous commissions to partners. Training classes, network services, even hardware appliances are commissionable. And, if our partners prefer to offer some of those things themselves, we don’t get in your way.

Don’t you have to be a programmer to make Open Source software work?Absolutely not. xTuple is designed to meet the needs of small to mid-sized businesses that are unlikely to have a programmer on staff. xTuple ERP is easy to install, and our partners enjoy unlimited technical support through all phases of the customer engagement. However, if you enjoy digging deeper into the code, there are significant additional revenue streams to be realized in developing new base functionality sponsored by a customer.

Open Source and Linux are great // but does xTuple run on Windows or Mac?Yes! All of our products can be interchangeably operated on Windows, Mac OS X, Linux, other Unix systems, and even on mobile devices. Our partners — and their customers — can mix and match hardware however they like, leveraging investments in existing technology without buying new systems.

Cloud computing products are everywhere // does xTuple offer its products in the Cloud?Of course! Technically, our products have always been offered in the cloud, which for many people equates to its availability over the Internet, accommodation of any level of usage, and lack of required costly hardware. Because our customers requested it, we offer xTuple deployment (of any of our free and/or commercial versions) in the Amazon.com Elastic Compute Cloud (Amazon EC2). This is a commercial service, billed monthly to a credit card.

Aren’t there security issues with Open Source?No — in fact, most argue that security is actually better with open source software than with traditional programs. Some find it counterintuitive that a visible, flexible source code would be more secure than one that is hidden and static. The repetitive and critical peer review inherent to open source reveals potential vulnerabilities before security is risked. Problems are identified and fixed, and the software is made more secure quickly and easily.

QUESTIONSANSWERED

For more questions or information, please contact us at Partners@xTuple.com