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MEETING MINUTESThe Regular Quarterly Meeting of the Midwest User Group was called to order at 10:15 a.m. onWednesday, June 3, 2015, at Bloomingdale Golf Club located in Bloomingdale, Illinois. Mark Olbrantzand Calvin Dekker served as moderators for addressing opening business.Dates for the last two 2015 Quarterly Meetings were reiterated, including a reminder on the changefrom Friday for the August meeting:Wednesday, August 12thFriday, November 13thThe first presentation for the meeting included a panel review of Insights. The group highlighted a great numberof positives for attending:ooooooooooooooooDirect access to Epicor Employees, especially technical support availabilityNetworking with other companies utilizing Epicor 10 – all the way back to Vantage 6Avalara’s party!One organization mentioned they hadn’t attended for quite some time and it boosted theimpression of Epicor software internallyFocused on informational sessions since the labs were included in Insights Conference bookInsights based on 10.1, which demonstrated some great improvements. i.e. SSRS 67 pagemanual down to 4 pages because of the improvements to base product10.1 Beta in April, controlled release in July, General release in 4th quarterWould be interested in a one page summary (vs. full release notes) for highlights of upcomingreleaseExtended Education was spoken favorably by the groupCopies of Lab Books are located online for session‐downloads.aspxResources also available via extended and embedded educationIt was indicated there are some service packs / performance bundles of patches for some of the10.0.700.4(?) for example for configurator and MRP.Experts’ sessions created opportunity to provide feedback, more of an open discussion style.Companies presenting their perspectives on use or unique arrangements in the system, or upliftof softwareSeveral sessions were highlighted as useful, such as the 10 Installation, etc. Several panelmembers commented that they hadn’t been able to get to all the classes that they had wanted.Insight manifest is now Epicor Manifest. Epicor purchased the module.06‐03‐2015 Meeting Minutes1Midwest User Group

MEETING MINUTESo Configurator 0 input configurator, so it can be configured behind the scenes Several updatesto configurator in 10.0 (and some new in 10.1)o Some discussion continued on additional Epicor products/modules:o XLConnect, product for GL, AR & AP. Going to be expanding. There is an option topurchase a single edition (single user). Also a version of XLConnect – XLDeveloper, torun queries against even more than financials. Also an XLBroadcast tool forsharing/scheduling reports.o Xsol, product for documenting business processo Knowledge Mentor – for technical documentation for processes. Can be used for anysoftwareNext year’s Insights will be in Las Vegas 2016, April 17‐20. All members of the panel expressedconfirmation of the value of attending the conference.Calvin Dekker provided a review of the Epicor 10 Top Twenty highlights. A copy of his presentation isattached.The meeting was paused for a break for luncheon.Following the break, Tara McCloud of Avalara made a presentation on Exemption Certificates and theAvalara Certificate Management Solution. A copy of Tara’s presentation is attached.Kevin Gallagher and Dave Meyer of Epicor spoke regarding the option of a cloud solution for EpicorERP. They also provided a copy of the presentation for review.The meeting was adjourned at 3:45 pm with the next regular scheduled Epicor Midwest User GroupMeeting scheduled for Wednesday, August 12.06‐03‐2015 Meeting Minutes2Midwest User Group

6/15/2015Epicor 10Top 20Calvin DekkerSafe Harbor StatementStatements contained in this press release that do not relate to historicalfacts may be viewed as “forward-looking statements” within the meaningof Section 27A of the U.S. Securities Act of 1933, as amended, andSection 21E of the U.S. Securities Exchange Act of 1934, as amended. Suchforward-looking statements may involve known and unknown risks,uncertainties and other factors, which may cause actual events, and/or theactual performance, financial condition or results of operations of Epicor tobe materially different from the actual events, and/or future performance,financial condition or results of operations, implied by such forwardlooking statements. Further information regarding some of these risks,uncertainties and other factors is included in the Company’s annual reporton Form 10-K filed with the U.S. Securities and Exchange Commission (the“SEC”) and such other documents that Company may file with the SECfrom time to time.1

6/15/2015Epicor 10Top 20Epicor 10 Top 2020.19.18.17.16.15.Classic Style vs Metro StyleClient Configuration FilesData Directive Changes & ABL/C# ConversionMethod Directive Changes & ABL/C# ConversionBAQ Changes to SQL Syntax with Sub-QueriesGL Transaction Types & Controlsa) Review for changes from prior versionsb) Fill out new accounts as needed6/15/2015Epicor 10Top 20Epicor 10 Top 2014.13.12.11.10.Site Maintenance & Configuration SettingsCompany Configuration SettingsCompany Maintenance (Reporting, Email, SMTP)Regenerating the DB Model in the EACEpicor Administration Consolea) Licensing and Activating Modulesb) Application Server Configurationc) Restarting Task Agent while in used) Restarting IIS while in use6/15/20152

6/15/2015Epicor 10Top 20Epicor 10 Top 209.8.7.6.5.Epicor Add-Ons, Third Party Add-ons, & LocationsEpicor Help Files and Embedded EducationSSRS Reportsa) Epicor Report Installationb) Folder / Report SecuritySQL Maintenance PlansMicrosoft SQL Servera) Patchesb) Names Pipesc) User Security6/15/2015Epicor 10Top 20Epicor 10 Top 204.3.2.1.Verification of SQL Licensing and Server ConfigurationWindows 2012 R2 – Setup of Roles & Featuresa) Internet Information Servicesb) Firewall Rulesc) Drive/Folder Sharesd) Hyper-VVirtualizationFormatting the Hard Drives – 64bit allocation blocks6/15/20153

6/15/2015Making sales tax less taxingAgenda Why are we here? The “What Ifs” for manufacturers & distributors Decrease risk: certificate management solution Impacting the bottom line Avalara21

6/15/2015Why are we here?Manufacturers and distributors don’t need Epicor TaxConnect right?EpicorAvalaraMaking sales tax less taxingCONFIDENTIAL & PROPRIETARY 3 4Why are we here?Manufacturers and distributors don’t need Epicor TaxConnect right? Sales tax but mighthave the wrong rateresulting in adifference ofpennies on thedollarMaking sales tax less taxingFails to prove theydon’t owe salestax. Couldpotentially owe theENTIRE backamountCONFIDENTIAL & PROPRIETARY2

6/15/2015Certificate management solutionCollecting thisand doing thisso auditors can do thisand you avoid hiring thisWhile also avoiding . applying your existing resources to non-core business tasks investing in scalable, personalized outbound messaging trying to manage the process without having internal application andindustry expertiseMaking sales tax less taxing‹ ‹ ‹Collect & ValidateCONFIDENTIAL & PROPRIETARY Collect Valid Certificate at ERP, B2B ecommercewebsite, or store POSRenewal Management Manage update requests for missing and expiredcertificatesTax Decision Software Seamless integration with tax softwareapplicationsStorage & Retrieval Quick, anytime access for certificates andmeta dataMaking sales tax less taxing3

6/15/2015Certificate management in a few stepsMaking sales tax less taxingWhat’s the difference?Retailers are easy: Calculate CollectManufacturers are more complex: They have to determine what qualifies for exemptions forthings that they sell, things that they buy internally forthe manufacturing process, and what is remitted back tothe states.Making sales tax less taxingCONFIDENTIAL & PROPRIETARY 84

6/15/2015The “What Ifs” for manufacturers AvalaraTax concerns for manufacturersQ: What if we purchase something for manufacturingprocess? It is tax exempt, right?TEST: Predominate test – is 51% of item used in the process? Exclusive test – anything less than 100% means that it doesn’tqualifyMaking sales tax less taxingCONFIDENTIAL & PROPRIETARY 105

6/15/2015Tax concerns for manufacturersQ: What if we purchase something for manufacturingprocess? It is tax exempt, right? Partial exemption – some states only allow a portion of an itemto be exempt Full exemption – other states allow the entire item to be exemptCONFIDENTIAL & PROPRIETARYMaking sales tax less taxing 11 12We can’t make this up A manufacturer just bought a forklift. Do they pay sales tax?Non-taxable if it is used in themanufacturing and productionprocess to move raw materialsTaxable if it is used in a warehouseto move around finished goodsMaking sales tax less taxingCONFIDENTIAL & PROPRIETARY6

6/15/2015Tax concerns for manufacturersQ: What if something is used in sales samples or demoequipment? When taken out of inventory,both create use tax liability Demo equipment expandsNexus due to ownership of propertyMaking sales tax less taxingCONFIDENTIAL & PROPRIETARY 13So what do we provide to customers?Making sales tax less taxing7

6/15/2015End-to-End ComplianceMaking sales tax less taxingOutsourced Compliance: Straw Poll How many of you currently outsource your payrollprocessing?– ADP?– Paychex?– Ceridian?– Other?Making sales tax less taxing8

6/15/2015Impacting the bottom line AvalaraManaging RiskQ: So what is the risk and impact to manufacturers?Risk 1: You overpaid taxes in areas where suppliers could have usedyour exemption certificateRisk 2: You underpaid taxes where vendors did not charge the correcttaxesMaking sales tax less taxingCONFIDENTIAL & PROPRIETARY 189

6/15/2015Why do customers buy?TIME!12.7 hours per month calculating sales tax18.2 hours per month managing certificates11.0 hours per month filing & remitting sales tax5.4 months - average payback period using AvalaraPercentage of businesses thatbelieve a sales tax auditor wouldfind a mistake. Wakefield ResearchMaking sales tax less taxingAudit Facts 6739Making sales tax less taxing10

6/15/2015Audit Facts 67K – Average Cost an Audit 39 Days – Average Length of an Audit-Wakefield ResearchMaking sales tax less taxingAudit Facts 85 57Making sales tax less taxing11

6/15/2015Audit Facts 85% - 1 missed question 57% - 2 or more missed questions-Wakefield Research: 5-Question Compliance QuizMaking sales tax less taxingA day in the life of a compliance manager Run taxMail returnsandandcheckscertificate of Fileremit(withnecessary UpdatecustomerrecordfrominmailingfromPostofOffice) Runreportexemptsales 0billing system forreportsreturns,even if they’revalidtheERP Manage B notices from the DORcertificates Confirm exemption certificate is on file for customersystem andFile returns electronically If not,calculatetax, book expense to plant,prepareadd tax totax Research andupdateratesreturn Start crying. Stop returnscrying. Startin ERP rate tables Createcreditmemos for taxcryingagain. Review expiring exemptionbilled to customers before Reconcilecertificates Re-class incorrectcertificate was receivedsalesentries Find a way to markmultiplegroupsfor acustomers Requestnewtaxonesfrom activepayable tosingle product, baseddifferentusage requests that have onFollowup on previousGL accoun Send email/call customersnot been received Update taxthat sent invalid certificates Review certificates receivedby customersschedules Submit check requests to accountingOverwhelmed yet?Register in relevant jurisdictions Update carry forward scheduleMaking sales tax less taxing12

6/15/2015Decrease risk:Certificate management solution Avalara 10 year old company 10k customers 300 new customers / mo. 2B calculations annually Millions of Exemption Certs 14B in annual returns filed 700 employees 8 years as Epicor Alliance Partner #1 in Sales Tax ComplianceMaking sales tax less taxing13

6/15/2015Q&ATara MacLeodRegional Sales Manager, Avalara(206) 826-4900 x1580Tara.macleod@avalara.com Avalara14