10% CONFIDENCE LEVEL

Year 1

Year 2

Year 3

Year 4

Year 5

CAPITAL EXPENDITURES

New Hires (Excluding Sys Dev and R&D)

New Hires (Sys Dev and R&D)

Non-Sys Dev and R&D Buildout & Set Up per New

�$�� 3,500

�$�� -��

�$� 14,000

�$� 21,000

�$ 28,000

�$ 35,000

�$�� -��

�$ 10,500

�$�� -��

�$ 10,500

�$�� -��

�$�� 3,500

�$�� 7,000

�$�� -��

Sys Dev and R&D Buildout & Set Up per New Hire

�$�� 10,000

�$� 10,000

�$� 20,000

�$� 10,000

�$�� -��

�$ 10,000

�$�� -��

�$ 50,000

�$�� -��

�$300,000

�$ 50,000

�$ 10,000

�$�� -��

�$140,000

�$ 10,000

�$�� -��

�$140,000

�$�� -��

Operating System Software/Financial Reporting & Acctg.

$100,000

$150,000

$25,000

Network Infrastructure & LAN

$50,000

$150,000

$25,000

Billing and Receiveables Software

$25,000

Other

Total Capex

�$185,000

�$334,000

�$� 81,000

�$ 28,000

�$ 35,000

�$�� -��

�$ 10,500

�$�� -��

�$ 10,500

�$�� -��

�$�� 3,500

�$ 17,000

�$�� -��

�$ 50,000

�$�� -��

�$300,000

�$ 50,000

�$ 10,000

�$�� -��

�$140,000

�$ 10,000

�$�� -��

�$140,000

�$�� -��

WATERFALL - DEPRECIATION EXPENSE

Depreciation Period in Months (Asset Life)

Month # (Assets are Assumed to go into service One Month Following Purchase)

�� 1

�� 2

�� 3

�� 4

�� 5

�� 6

�� 7

�� 8

�� 9

�� 10

�� 11

�� 12

�� 13

�� 14

�� 15

�� 16

�� 17

�� 18

�� 19

�� 20

�� 21

�� 22

�� 23

�� 24

�� 25

�� 26

�� 27

�� 28

�� 29

�� 30

�� 31

�� 32

�� 33

�� 34

�� 35

�� 36

�� 37

�� 38

�� 39

�� 40

�� 41

�� 42

�� 43

�� 44

�� 45

�� 46

�� 47

�� 48

�� 49

�� 50

�� 51

�� 52

�� 53

�� 54

�� 55

�� 56

�� 57

�� 58

�� 59

Year 1� Month 1

�� 5,139

�� -��

Year 1� Month 2

�� 9,278

�� -��

Year 1� Month 3

�� 2,250

�� -��

Year 1� Month 4

�� 778

�� -��

Year 1� Month 5

�� 972

�� -��

Year 1� Month 6

�� -��

Year 1� Month 7

�� -��

Year 1� Month 8

�� -��

Year 1� Month 9

�� 292

�� -��

Year 1� Month 10

�� -��

Year 1� Month 11

�� -��

Year 1� Month 12

�� -��

Year 2� Month 1

�� 292

�� -��

Year 2� Month 2

�� -��

Year 2� Month 3

�� 97

�� -��

Year 2� Month 4

�� 472

�� -��

Year 2� Month 5

�� -��

Year 2� Month 6

�� 1,389

�� -��

Year 2� Month 7

�� -��

Year 2� Month 8

�� -��

Year 2� Month 9

�� -��

Year 2� Month 10

�� -��

Year 2� Month 11

�� 8,333

�� -��

Year 2� Month 12

�� 1,389

Year 3� Month 1

�� 278

Year 3� Month 2

�� 278

Year 3� Month 3

�� 278

Year 3� Month 4

�� -��

Year 3� Month 5

�� -��

Year 3� Month 6

�� -��

Year 3� Month 7

�� -��

Year 3� Month 8

�� -��

Year 3� Month 9

�� -��

Year 3� Month 10

�� -��

Year 3� Month 11

�� -��

Year 3� Month 12

�� -��

Year 4� Month 1

�� 3,889

Year 4� Month 2

�� 278

Year 4� Month 3

�� -��

Year 4� Month 4

�� -��

Year 4� Month 5

�� -��

Year 4� Month 6

�� -��

Year 4� Month 7

�� -��

Year 4� Month 8

�� -��

Year 4� Month 9

�� -��

Year 4� Month 10

�� -��

Year 4� Month 11

�� -��

Year 4� Month 12

�� -��

Year 5� Month 1

�� 3,889

Year 5� Month 2

�� -��

Year 5� Month 3

�� -��

Year 5� Month 4

�� -��

Year 5� Month 5

�� -��

Year 5� Month 6

�� -��

Year 5� Month 7

�� -��

Year 5� Month 8

�� -��

Year 5� Month 9

�� -��

Year 5� Month 10

�� -��

Year 5� Month 11

�� -��

Year 5� Month 12

Total Depreciation Expense

�� -��

�� 5,139

�� 14,417

�� 16,667

�� 17,444

�� 18,417

�� 18,708

�� 19,000

�� 19,097

�� 19,569

�� 20,958

�� 29,292

�� 30,681

�� 30,958

�� 31,236

�� 31,514

�� 30,264

�� 21,264

�� 19,014

�� 18,236

�� 17,264

�� 16,972

�� 20,569

�� 20,472

�� 20,000

�� 18,611

�� 10,278

Accumulated Depreciation

�� -��

�� 5,139

�� 19,556

�� 36,222

�� 53,667

�� 72,083

�� 90,500

� 108,917

� 127,333

� 146,042

� 164,750

� 183,458

� 202,167

� 221,167

� 240,167

� 259,264

� 278,833

� 298,403

� 319,361

� 340,319

� 361,278

� 382,236

�� 403,194

� 432,486

� 463,167

� 494,125

� 525,361

� 556,875

� 588,389

� 619,903

� 651,417

� 682,931

� 714,444

� 745,958

� 777,472

� 808,986

�� 840,500

� 870,764

� 892,028

� 911,042

� 929,278

� 946,542

� 963,806

� 981,069

� 998,333

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