· 99.9% application availability between 8AM and Midnight EST. For each day missing this availability, Licensee will receive one free month for one store, pro-rating the annual fee.

· 2 hours escalation support for critical issues, including, without limitation, Licensee’s inability to access the application, Licensee’s inability to run reports, and a system crash.

· Intralight Host Server CPU will never exceed 70% processor utilization.

· Intralight Host Server CPU will never exceed 90% storage utilization.

· Intralight will provide disaster recovery within 24 hours for failed systems. Licensee will receive a free month of service for the entire company if Intralight doesn’t provide full recovery within 24 hours, prorating the annual fee.

Rollout Sequence

The objective is to first gain immediate control of all stores, discipline in tasks/procedures and unify accounting processing procedures; then rollout additional tools (item level) to obtain full integration, connectivity and centralization to optimize net-profitability. Set targets with Intralight implementation specialists to complete rollout and in turn realize your ROI.

During the setup phase, Intralight provides free hardware procurement, configuration and testing services to ensure optimal hardware/software compatibility and performance, and provide our clients with a true “plug-and-play” solution.

System Setup

The setup phase consists of:

1. Complete and accurate data collection

2. Database creation and loading

3. Review for completeness and accuracy

Implementation

Phase 1: Optimize Controls and Accounting Processing

* All stores

1. Invoices (receivables) manually entered into PC, AP for store paid out of Intralight

2. Continue manual ordering with Telxon scanners

3. Poll POS batch file to back office, push product/price file to POS

4. Submit Daily Worksheet reports: department sales, statistics, tank inventory, cash o/s, labor time tracking, AP/AR.

Phase 2: Item Level, “Scan Out” inventory, Central Pricebooking, Inventory Analysis

* One store

1. Pocket PC with master pricebook file used to price, product check and label – file synched to PC and on to POS

2. “Scan Out” inventory (sales at register) with approx. 100% consistency

3. Submit Daily Worksheet reports with item level sales totals

Phase 3: Item Level, “Scan In” inventory

* Same store as Phase 2, finish before going to other stores

1. “Scan In” inventory (i.e. invoices, receivables) with Pocket PC

2. Gross margin analysis by item

3. Enforce vendor pricing

Phase 4: Item Level, Audits, FIFO Cost

* Same store as Phase 2, finish before going to other stores

1. Audit store for beginning inventory and adjust pre-audit inventory

2. Central predictive ordering in Intralight

3. Extended training for complete item level inventory management

Support

Unlimited support is available via email/phone from 8:00am to 5:00pm MST, Mon-Fri. Extra hours (i.e. Saturday, Sunday, nights) are available for an add-on fee. To diagnose tech issues, we use a remote IP connection to your PC, plus access your database on the Host Server.