TMT Investment Banking

eCommerce Market Update 3Q 2013

Confidential Headwaters TMT Investment Banking: Strong 2013 Momentum

Headwaters’ technology, media, and telecom (“TMT”) eCommerce practice has recently completed strategic transactions across the ecosystem:

HAS BEEN ACQUIRED HAS BEEN ACQUIRED HAS DIVESTED SPECIFIC BY BY ASSETS TO

Financial Advisor to Financial Advisor to Financial Advisor to the Seller the Seller the Seller

May 2013 March 2013 January 2013

Avail / RichRelevance: Cross-border M&A in eCommerce Infrastructure

Cooking.com / Target Corporation: Top retailer acquiring in Specialized eCommerce focused on home and cookware vertical with hybrid content story

Payvment / Intuit: Social commerce and marketing related transaction

Confidential 2 eCommerce Market Update

M&A Activity – M&A activity in 3Q 2013 is stronger than that of 2Q 2013 with deal volume back to 2012 levels. 3Q 2013 deal value was helped by eBay / PayPal’s $800M acquisition of Braintree.

Investment Activity – Investment activity was weaker in 3Q 2013 than in 2Q 2013, as was aggregate investment value. 3Q saw top U.S. funds (Accel Partners and Tiger Global) make a large investment into a top Indian eCommerce company (FlipKart).

Trading Multiples – Multiples in this sector impacted by revenue growth rate and gross margins. Marketplaces continue to command high premiums, as do eCommerce companies with specific vertical market focus. Headwaters 4Q eCommerce update will include recent IPOs from Chegg (NYSE:CHGG), a textbook rental site, and Zulily (NasdaqGS:ZU), a daily deals site for moms, babies, and kids.

Confidential 3 eCommerce M&A Volume Continues to Accelerate in 2013

Deal Volume Deal Value ($B) $ in billions # Deals $6.00 60 54 54 55 51 50 51 $5.00 47 50 5.05 41 40 $4.00 40 3.49 3.40 34 33 $3.00 30 2.01 $2.00 1.72 20 1.40

$1.00 0.65 0.77 10 0.48 0.05 0.13

$0.00 0 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013

Top 3 Acquisitions by Quarter ($M) – Target / Acquirer 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 GSI Commerce / Primedia / Zong / Kobo / Bol.com / Getty Images / .com / Channel Intel. / Hybris / Braintree / eBay TPG eBay Rakuten Ahold Carlyle Group Priceline Google SAP eBay ($2,400) ($316) ($240) ($315) ($465) ($3,300) ($1,800) ($125) ($1,100) ($800) AutoTrader.ca / Qunar.com / OPENLANE / Wiggle / Redbaby / / Market Leader / EziBuy / Apax Baidu KAR Auction Bridgepoint Suning Trulia Woolworths ($745) ($306) ($210) ($281) ($66) ($632) ($355) ($280) / GittiGidiyor / Plimus / Wer Liefert / ConceptWave / Litle & Co. / Society6 / Monoprice / Permira Funds eBay Great Hill Paragon Partners Ericsson Vantiv Demand Media Blucora ($611) ($235) ($115) ($103) ($56) ($361) ($94) ($180)

______Source: 451 Group; includes announced transactions with disclosed, estimated, undisclosed transaction values Top 3 acquisitions with disclosed transaction values greater than $50M

Confidential 4 Top Acquirers in eCommerce Market Top Acquirers by Volume, 2011 – Present Buyer # Acquisitions Total Value ($M) Targets 2ememain.be, 2dehands.be, bill safe, Braintree Payment Solutions, GittiGidiyor.com, GSI Commerce, Hunch, eBay 11 3,675 Magento, Svpply, WHI Solutions, Zong Rakuten 9 354 ADS eCommerce Logistics, Ikeda, Kenko.com, Kobo, Play.com, Popshops.com, Tradoria, Webgistix, Wuaki.tv

LivingSocial 5 NA Ensogo.com, GoNabit, Lets Bonus, ONOSYS, TicketMonster

SKYE Associates 4 NA Fantasy Jewelry Box, The Hip Chick, PinkMascara.com, SimplySoles.com

Home Away 4 10.2 Second Porch, REA Group

Top Acquirers by Total Transaction Value – Greater than $400M, 2011 – Present Buyer Total Value ($M) Targets 2ememain.be, 2dehands.be, bill safe, Braintree Payment Solutions, GittiGidiyor.com, GSI Commerce, Hunch, Magento, Svpply, eBay 3,675 WHI Solutions, Zong

The Carlyle Group 3,300 Getty Images

Priceline 1,800 KAYAK.com

SAP 1,100 hybris

Kynetic 996 Ru La La, Shoprunner

Apax Partners 745 Autotrader.ca

Expedia 632 Trivago

Permira Funds 611 Opodo

Ahold 465 Bol.com ______Source: 451 Group through 09/30/13; includes transactions with disclosed, estimated, undisclosed values

Confidential 5 eCommerce M&A Case Study Transaction Overview: On September 26, 2013 • $800 million acquisition of Braintree Payment Solutions by eBay / PayPal • Braintree had estimated LTM revenue of $125 million, while processing $12 billion in total annual payments • Implied LTM revenue multiple is 6.4x • Braintree had raised $70M in funding prior to the acquisition • At 210 employees, consideration per employee is $3.8 million

Target Description • Provides online and mobile payment APIs for software developers and businesses to integrate payments functionality into their websites. Software ACQUIRED includes payment gateways and credit card information storage features.

Transaction Commentary: • eBay will integrate Braintree into its PayPal subsidiary to bolster its payments services. All 210 employees will join PayPal. • According to the acquirer press release, “[Braintree] adds complementary talent and technology that [eBay] believes will help accelerate PayPal’s global leadership in mobile payments. Together, PayPal and Braintree also will accelerate [eBay’s] leadership in supporting developers who are creating innovative solutions for next generation commerce startups.”

______Source: Acquirer Press Release, 451 Group, eCommerce Bytes

Confidential 6 eCommerce Investment Volume Declining Investment Volume Investment Value ($M)

$ in millions 3,500 160

134 3,000 2,869 140

113 120 2,500 106 104 98 90 100 2,000 81 83 84 77 73 80 1,500 1,358 1,235 1,301 1,280 941 60 774 982 1,000 889 726 40 823 500 20

0 0 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013

Top 3 Investments by Quarter ($M)

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 360buy.com 360buy.com Airbnb LivingSocial Flipkart India Fanatics Flipkart India 360buy.com 360buy.com Fanatics Flipkart India ($500) ($1,500) ($117) ($176) ($150) ($150) ($150) ($300) ($700) ($170) ($150) Privalia LivingSocial Ozon Holdings Klarna Despegar.com Fotolia Delivery Hero Fab LivingSocial Fab Delivery Hero ($123) ($400) ($100) ($155) ($93) ($150) ($50) ($120) ($110) ($150) ($80) Stella & Dot Wayfair Xiu.com Living Social Airbnb Lemon Tree Lazada Zulily Attivio Lamoda Comercio Digital ($37) ($165) ($100) ($143) ($70) ($119) ($50) ($85) ($42) ($130) ($70)

______Source: PitchBook; includes announced transactions with disclosed, estimated, undisclosed transaction values Top 3 investments with disclosed investment values

Confidential 7 Top Investors In eCommerce Market

Top Investors by Volume – Twenty or More Investments, 2011 – Present

Investor Investments Targets

Baby.com.br, BaubleBar, BeachMint, Bonobos, Comuto, Elo7, Endorse, eTree, Etsy, Exclusively.In, Flipkart India, HMS Accel Partners 39 Infotech, Hotel Tonight, Loose Cubes, Lot18, Lyst, Modcloth, One Jackson, Ostrovok.ru, Privat Trade, Project J, Shopmium, Stylefantasia, Travelmob, UberMedia, ZopNow

AxialMarket, BlackJet, Chloe and Isabel, CustomMade Ventures, Fab, Grand Street, Hotel Tonight, Instacanvas, Jirafe, Liftopia First Round Capital 34 Holding, Modcloth, One Kings Lane, Poppin, Storenvy, TaskRabbit, Threadflip, True&Co, Wanelo, Warby Parker

1stdibs, Brit Media, Capitaine Train, CruiseWise, Etsy, farfetch.com, HouseTrip, Nasty Gal, Notonthehighstreet.com, Ozon Index Ventures 28 Holdings, People Per Hour, Privalia, Rad, Shapeways, Stylefantasia, TrialPay, UberMedia

BabbaCo, Baby.com br, BlackJet, Creative Market, CruiseWise, DailyLook, Endorse, everlane, Fab, Inporia, Jackalope Labs, SV Angel 24 Minno, MyVR, PayDragon, Peek Travel Services, Porch.com, Poshmark, Reloveit, Shoptiques, Vayable, Warby Parker, Zaarly

Tiger Global 360buy.com, Baby.com.br, CatchoftheDay.com.au, Despegar.com, eTree Marketing, Exclusively.In, Flipkart India, 24 Management MotorExchange, One Kings Lane, Robemall Apparels, Trendyol.com, Warby Parker, Wego, Wikimart

ADKU, Continuuity, Duetto Research, GoEuro, Gogobot, Hotel Tonight, JOOR, Loose Cubes, Retail Relay, Send the Trend, 23 TrialPay, Vaunte, Wayfair, Wikets

Kleiner Perkins Caufield Choose Energy, everlane, Lockerz, Luvocracy, One Kings Lane, Plum District, Rent The Runway, Session M, Stipple, Storenvy, 21 & Byers Trendyol.com, Xiu.com, Zaarly

______Source: PitchBook through 09/30/13; number of investments may include follow-on investments in same target

Confidential 8 eCommerce M&A Case Study Transaction Overview: On August 23, 2013 • $150 million investment in Flipkart India by Accel Partners, Iconiq Capital, Naspers, and Tiger Global Management • The post-money valuation for the company is $850 million • The investment brings Flipkart’s total funding to $181 million • Flipkart currently has over 4,000 employees

Target Description • Provider of an online shopping platform. The company's website offers a range of products including apparel, accessories, cameras, laptops, software, INVESTED IN kitchen supplies, books, games and movies.

Transaction Commentary: • According to CEO Sachin Bansal, “This round of funding would fuel our growth plans, and help us achieve our stated ambition of hitting $1 billion in gross merchandise value by 2015.” • The Company’s CFO, Karandeep Singh, also stated “The money raised in this round will be invested in expanding supply chain capacities, launching new categories, and in growing the talent pool to continue building on our leadership position.”

______Source: PitchBook, Times of India, India Digital Review

Confidential 9 U.S eCommerce Comparable Public Companies

U.S Internet Retailers (Web Only) U.S. Retailers with Online Presence* LTM Revenue LTM Revenue

4.0x 4.0x

2.9x

2.1x 2.0x 2.0x 2.0x 2.0x

1.2x 1.1x 1.1x Median: 0.9x 0.9x 0.7x 0.8x 0.7x Median: 0.6x 0.7x 0.7x 0.4x 0.5x 0.3x 0.4x 0.3x 0.2x 0.2x 0.2x 0.1x 0.0x 0.0x

______Sources: Capital IQ as of 09/30/13, Internet Retailer 500; companies arranged by descending enterprise value *Top U.S. Retailers by websales volume, or greater than 33% of revenue in websales

Confidential 10 European eCommerce Comparable Public Companies

European Internet Retailers (Web Only) European Retailers with Online Presence* LTM Revenue LTM Revenue

8.0x 4.0x

7.1x

6.0x

2.6x

Median: 4.0x 3.4x 3.7x 2.0x 3.4x

2.0x 1.8x

0.6x Median: 0.8x 0.4x 0.4x 0.4x 0.2x 0.2x 0.0x 0.0x

______Sources: Capital IQ as of 09/30/13, Internet Retailer 500; companies arranged by descending enterprise value *Top European Retailers by websales volume, or greater than 33% revenue in websales

Confidential 11 Specialized eCommerce Comparable Public Companies

Marketplaces Travel LTM Revenue LTM Revenue

16.0x 10.0x

13.9x 14.0x 13.1x 8.2x 12.6x 8.0x 12.0x Median: 11.1x 11.1x

10.0x 6.0x

8.0x 6.9x 4.0x 6.0x

4.3x 4.1x Median: 4.0x 2.1x 2.1x 2.1x 2.0x 1.4x 1.6x 2.0x

0.0x 0.0x

______Source: Capital IQ as of 09/30/13; companies arranged by descending enterprise value

Confidential 12 eCommerce Enablement Comparable Public Companies

eCommerce Services eCommerce Infrastructure LTM Revenue LTM Revenue

16.0x 18.0x 16.5x 13.7x 16.0x 14.0x

12.0x 11.8x 14.0x 12.0x

12.0x 10.0x 10.0x 8.0x 7.0x 8.0x Median: 6.0x 5.7x 6.0x 4.3x 3.9x 4.2x 4.0x 3.7x 4.0x 2.6x Median: 2.3x 2.3x 2.3x 2.0x 2.0x 0.8x 0.4x 0.7x 0.0x 0.0x

______Source: Capital IQ as of 09/30/13; companies arranged by descending enterprise value

Confidential 13 U.S, Europe & Specialized eCommerce Capital Markets Performance

Since 2011, European Internet Retailers (Web Only) (+122.2%), Marketplaces (+108.3%), and Travel (+99.4%) have outperformed U.S. Internet Retailers (Web Only) (+68.7%), Leading Internet Companies (+67.2%), the NASDAQ (+40.1%), the S&P 400 (+35.2%), U.S. Retailers with Online Presence (+27.3%), and European Retailers with Online Presence (-3.3%)

150.0% European Internet Retailers (Web Only): +122.2% 120.0% Marketplaces: +108.3% Travel: +99.4% 90.0% U.S. Internet Retailers (Web Only): +68.7% 60.0% Leading Internet Companies: +67.2% NASDAQ: 30.0% +40.1% S&P 400: +35.2% 0.0% U.S. Retailers w/ Online Presence: +27.3% European (30.0%) Retailers w/ Online Presence: (60.0%) -3.3%

______Source: Capital IQ as of 09/30/13; refer to public comps for constituents Leading Internet Companies Index includes top internet companies by revenue as per Capital IQ: Amazon, Baidu, eBay, Expedia, , Google, Priceline, Rakuten, Tencent, and Yahoo!

Confidential 14 eCommerce Enablement Capital Markets Performance

Since 2011, eCommerce Services (+41.8%) has underperformed compared to Leading Internet Companies (+67.2%), but outperformed the NASDAQ (+41.8%) and the S&P 400 (+40.1%). eCommerce Infrastructure (+20.2%) has underperformed Leading Internet Companies, the NASDAQ, and the S&P 400. Leading Internet 70.0% Companies: +67.2% 60.0%

50.0% eCommerce Services: 40.0% +41.8% NASDAQ: 30.0% +40.1% S&P 400: 20.0% +35.2% eCommerce 10.0% Infrastructure: +20.2% 0.0%

(10.0%)

(20.0%)

(30.0%)

______Source: Capital IQ as of 09/30/13; refer to public comps for constituents Leading Internet Companies Index includes top internet companies by revenue as per Capital IQ: Amazon, Baidu, eBay, Expedia, Facebook, Google, Priceline, Rakuten, Tencent, and Yahoo!

Confidential 15 Headwaters Is Your Premier Choice

• We are best in class bankers, technologists, and strategists

HAS BEEN ACQUIRED HAS BEEN ACQUIRED • Relevant transaction expertise BY BY . Completed transactions with many strategic acquirers, targets, and investors in eCommerce Financial Advisor to Financial Advisor to the Seller • Strong relationships with key, relevant strategic parties the Seller . Sector focus and industry experience means we are in frequent communication with likely interested targets HAS DIVESTED SPECIFIC HAS BEEN ACQUIRED ASSETS TO BY • Direct market coverage gives us unique insights regarding: . Acquisition targets ▪ IP / value chain Financial Advisor to Financial Advisor to . Competitive and adjacent market activity ▪ Growth markets the Seller the Seller • Highly customized process to fit specific dynamic context Solid Information Technology Ltd., Inc.

. One size fits all auction processes not the best in eCommerce HAS BEEN ACQUIRED HAS BEEN ACQUIRED BY BY . We will run a focused, intelligent process with proper target screening tailored to specific areas of interest to achieve most ideal valuation for buyer Financial Advisor to Financial Advisor to • We think “outside the box” – complex situations require creative the Seller the Seller solutions Tickets.com

HAS ACQUIRED IPO $95,500,000

2012 TMT DEAL OF THE 2012 INTERNATIONAL INVESTMENT BANK INVESTMENT BANK $120,000,000 YEAR <$100M DEAL OF THE YEAR OF THE YEAR OF THE YEAR Fairness Opinion to the Buyer Lead Manager

Confidential 16 Contact

Gary Moon Sun Jen Yung Kuni Takahashi Managing Director Managing Director Director Head of Technology, Media & Telecom Head of Digital Media & Internet Technology, Media & Telecom Investment Banking Investment Banking Investment Banking

Office: (415) 766-3862 Office: (917) 297-8716 Office: (415) 766-3864 Cell: (650) 515-8734 Cell: (650) 465-7824 [email protected] [email protected] [email protected]

135 Main St 500 West Putnam Avenue 135 Main St Suite 800 Suite 400 Suite 800 , CA 94105 Greenwich, CT 06830 San Francisco, CA 94105

www.headwatersmb.com

Confidential 17 Appendix 3Q 2013 eCommerce Precedent M&A Transactions

Confidential 18 3Q 2013 Precedent M&A Transactions EV/LTM EV/LTM EV ($M) Revenue EBITDA High $800.0 6.4x 11.3x Mean 233.8 3.9x 11.3x Median 123.3 3.9x 11.3x Low 26.4 1.4x 11.3x

Enterprise EV / EV / Date Target Target Description Acquirer(s) Value ($M) LTM Rev. LTM EBITDA

Braintree Payment Provides online and mobile payment APIs for software developers and businesses to 09/26/13 PayPal, Inc. [eBay] 800.0 6.4x -- Solutions integrate payments functionality into their websites.

Provides online and toll-free telesales of personalized and celebrity-inspired jewelry 09/26/13 EvesAddiction.com From You Flowers LLC ------at www.evesaddiction.com.

Operates as an online retailer of a broad range of computer hardware and software PMI Computer 09/24/13 and traditional office supplies for businesses in the US through Office Essentials ------Supplies www.pmicomputersupplies.com.

Provides online shopping cart creation software that enables businesses to create 09/20/13 AmeriCart LLC AmeriCommerce, L.P. ------customized shopping cart functionality for their online commerce sites.

Centauris Solutions Provides accounts receivable (AR) management, payments, financial business 09/19/13 Intrix Technology Inc. ------LLC intelligence, CRM and reporting SaaS for businesses.

Operates as an online retailer of birthday, wedding, bridal and baby shower gifts, 09/17/13 Beau-coup Favors, Inc. Swoozies ------favors, and supplies at www.beau-coup.com.

The assets of Six Sigma Services, which provides mobile payment and transaction 09/17/13 Six Sigma Services SinglePoint, Inc. ------processing software for businesses globally.

Tirendo Germany Provides automobile tires, wheels, rims and related accessories for consumers and 09/16/13 Delticom AG 66.5 -- -- GmbH businesses in Europe through www.tirendo.de.

Provides an ambiance and atmosphere-focused restaurant, bar and nightlife search 09/16/13 Hoppit XO Group Inc. ------engine for consumers in many cities across the US. ______Source: 451 Group

Confidential 19 3Q 2013 Precedent M&A Transactions EV/LTM EV/LTM EV ($M) Revenue EBITDA High $800.0 6.4x 11.3x Mean 233.8 3.9x 11.3x Median 123.3 3.9x 11.3x Low 26.4 1.4x 11.3x

Enterprise EV / EV / Date Target Target Description Acquirer(s) Value ($M) LTM Rev. LTM EBITDA

Provides an insurance and loan search engine for businesses and consumers in the 09/13/13 Click.co.uk Click Consult ------UK.

Provides online and mobile transaction processing software and POS systems BluePay Processing 09/11/13 enabling merchants and businesses globally to accept credit card and electronic TA Associates ------LLC check payments.

Provides a cloud application marketplace for cloud hosting service providers to offer 09/10/13 Standing Cloud, Inc. AppDirect, Inc. ------to their customers application hosting.

Operates as a travel deal generation and B2B travel marketplace that connects tour OnTrade Networks, 09/10/13 operators, wholesalers and corporate buyers with deals from hotels, airlines and car Conference Hound, Inc. ------LLC rental companies.

ExperienceOn Operates a hotel search engine and booking website at www.fogg.co.uk that enables 09/05/13 Ltd. ------Ventures S.L. consumers to find and book hotels globally.

Provides an online travel reservation service that enables Russian consumers and 09/05/13 Travel.ru businesses to book airline and rail tickets, hotels, tours and other entertainment Oktogo.ru ------through Travel.ru.

Icelolly Marketing Operates a holiday travel, including airfare and car rental, price comparison website Palatine / Icelolly 09/04/13 26.4 -- -- Limited for consumers at www.icelolly.com. management

In A Bind Assembly Provides order fulfillment, direct marketing and distribution services for businesses iD Commerce + 08/30/13 ------and Fullfillment in the US. Logistics

Provides e-commerce management software and SaaS for businesses in the Nordic 08/28/13 E-butik i Norden AB Jetshop AB ------region. ______Source: 451 Group

Confidential 20 3Q 2013 Precedent M&A Transactions EV/LTM EV/LTM EV ($M) Revenue EBITDA High $800.0 6.4x 11.3x Mean 233.8 3.9x 11.3x Median 123.3 3.9x 11.3x Low 26.4 1.4x 11.3x

Enterprise EV / EV / Date Target Target Description Acquirer(s) Value ($M) LTM Rev. LTM EBITDA

Operates as a graphic design marketplace classifieds site for consumers and 08/27/13 LogoChef 99designs ------businesses in Brazil.

EziBuy Holdings Operates as an online retailer of fashion and home decor with an emphasis targeting 08/22/13 Woolworths Limited 280.0 -- -- Limited consumers in Australia and New Zealand. Also operates related retail stores.

The customer base of defunct Work for Pie, which provided a searchable Work for Pie, Inc. 08/22/13 employment classified ads website for software developers that enabled skill set and GroupTalent ------(customer base) portfolio creation.

Operates as a subscription and membership-based online retailer of shoes and 08/21/13 ShoeDazzle, Inc. JustFabulous ------handbags for female consumers in the US through www. shoedazzle.com.

Provides e-commerce consulting, web design, systems integration and software 08/21/13 Tacit Knowledge Inc. Newgistics, Inc. ------development to businesses in the US.

Provides a searchable real estate classified ads website that lists homes, apartments 08/19/13 NMD Interactive Zillow 50.0 -- -- and commercial properties for rent or sale primarily in .

Provides an online streaming video aggregation and recommendation web-based API 08/13/13 Matcha.tv Apple Inc. ------and iPad application for consumers.

Provides an online affiliate retail data and coupon aggregation service for Web 08/12/13 PopShops.com Rakuten, Inc. ------publishers and Internet merchants.

InvisibleHand Provides a product price discovery and notification Web browser application 08/09/13 Skimlinks ------Software Ltd extension for online shoppers. ______Source: 451 Group

Confidential 21 3Q 2013 Precedent M&A Transactions EV/LTM EV/LTM EV ($M) Revenue EBITDA High $800.0 6.4x 11.3x Mean 233.8 3.9x 11.3x Median 123.3 3.9x 11.3x Low 26.4 1.4x 11.3x

Enterprise EV / EV / Date Target Target Description Acquirer(s) Value ($M) LTM Rev. LTM EBITDA

The SmartPay assets of OnSharp, which provides billing, payment and invoice OnSharp (SmartPay 08/08/13 management software as a service (SaaS) to businesses. Also provides related CardConnect ------assets) Android and iOS mobile applications.

Operates a hotel bookings search engine and comparison website for consumers 08/06/13 DealAngel, Inc. OneTwoTrip Ltd. ------globally through http://www.dealangel.com/.

Provides an online travel search site and user generated hotel review service for 08/03/13 Venture Republic Yahoo! Japan ------consumers in Japan at www.travel.com.jo and www.hotel.jp.

Provides payment software as a service (SaaS) and a related mobile application that 08/02/13 PayDivvy, Inc. Higher One, Inc. ------enables consumers to pay and track bills and split bills among friends.

Operates as an online retailer of consumer electronics and tech products, including a 08/01/13 Monoprice wide variety of cables, networking and IT gear, mobile accessories, gaming Blucora 180.0 1.4x 11.3x accessories, and pro audio equipment.

08/01/13 SeriousShops.com Operates several niche consumer goods retail websites for consumers. Vertana Group LLC ------

Resells email marketing software and provides proprietary brand reputation 08/01/13 ElementsLocal, Inc. management, Web content management and social media, web analytics and SaaS Bridgeline Digital ------for businesses throughout the US.

Provides a searchable employment classified ads website for job-seekers and 08/01/13 JobOn Corporation businesses globally through www.jobon.com. Website enables potential employers Corporate Press, Inc. ------to view video-enabled job applications.

Online clothing and accessories retailer, specializing in women's evening, cocktail Camille La Vie & Group 07/31/13 eDressMe ------and prom dresses. USA ______Source: 451 Group

Confidential 22 3Q 2013 Precedent M&A Transactions EV/LTM EV/LTM EV ($M) Revenue EBITDA High $800.0 6.4x 11.3x Mean 233.8 3.9x 11.3x Median 123.3 3.9x 11.3x Low 26.4 1.4x 11.3x

Enterprise EV / EV / Date Target Target Description Acquirer(s) Value ($M) LTM Rev. LTM EBITDA

Provides SaaS applications for small and medium-sized businesses. Software provides 07/31/13 Palaran, Inc. analysis and tracking of visitors and provides access to and integrates e-commerce Yahoo! Inc. ------applications.

Operates an online network that enables students to share and sell notes taken 07/24/13 Utopian World during their classes through www.NoteUtopia.com. Also operates a related student FlashNotes, Inc. ------social network.

Provides an online meeting venue location and planning service for corporate event Lexyl Travel 07/24/13 Meetings.com ------planners at www.meetings.com. Technologies

Mobile Dynamic Operates as an online government-subsidized PEO (Professional employer 07/19/13 Career Start Inc Marketing [Pub Crawl ------organization) job board, for the purposes of connecting employers with jobseekers. Holdings, Inc.]

BoxLogix's Cincinnati-based software and controls division, which provides software- 07/16/13 BoxLogix Automation Wynright Corporation ------based warehouse automation systems for the manufacturing industry.

Provides searchable rental vacation property classified ads and a reservation booking 07/16/13 travelmob Pte Ltd. destination for consumers to enable vacation property owners to connect with HomeAway Inc ------travelers.

Operates a domain name search and domain name generator. Generator enables 07/15/13 Lean Domain Search users to search available domain names and then generates suggestions based on Automattic Inc. ------entered keywords.

Provide an online ride-matching service that enables users in , 07/12/13 Zimride Washington DC, San Francisco, New York and Lake Tahoe to connect with drivers for Enterprise Holdings Inc. ------the purposes of carpooling.

Otwarty Rynek Provides procurement SaaS for businesses. Application include those for supplier AVALLON / Otwarty 07/10/13 ------Elektroniczny S.A selection, auctions, contract management and request for proposals, to enterprises. Rynek Elektroniczny ______Source: 451 Group

Confidential 23 3Q 2013 Precedent M&A Transactions EV/LTM EV/LTM EV ($M) Revenue EBITDA High $800.0 6.4x 11.3x Mean 233.8 3.9x 11.3x Median 123.3 3.9x 11.3x Low 26.4 1.4x 11.3x

Enterprise EV / EV / Date Target Target Description Acquirer(s) Value ($M) LTM Rev. LTM EBITDA

Provides BPO, including project design, Web design, order fulfillment, printing and 07/10/13 Quality DPM directFX Solutions, Inc. ------mailing services for businesses in the US.

Operates a Dutch language classified ads website for the purchase and sale of a 07/04/13 2dehands.be eBay, Inc. ------broad range of items for consumers in Belgium through 2dehands.be.

Operates a French language classified ads website for the purchase and sale of a 07/04/13 2ememain.be eBay, Inc. ------broad range of items for consumers in Belgium through 2ememain.be.

______Source: 451 Group

Confidential 24 Appendix 3Q 2013 eCommerce Precedent Investments

Confidential 25 3Q 2013 Precedent Investments, $5M+ Deal Size Company ($M) Val. ($M) High $150.0 $850.0 Mean 26.5 227.7 Median 14.3 87.9 Low 5.0 12.1 Company Deal Size Date Target Target Description Investor(s) Deal Type Valuation ($M) ($M)

Liftopia Provider of an online ski marketplace, offering discount ski lift tickets with deals on First Round, Industry , Lowercase 09/27/13 Series D 5.0 -- Holding rentals, lessons, dining and other mountain related activities and products. Capital, ru-Net, SK, Thayer

Provider of a marketplace for home design and improvement. The company’s 09/25/13 Porch.com platform connects homeowners with home-service professionals, based on online -- Early Stage VC 8.2 -- reviews.

Prosper Provider of a peer-to-peer marketplace. The company provides an online auction 09/24/13 BlackRock, Sequoia Later Stage VC 25.0 -- Marketplace platform designed to provide a transparent way to obtain a personal loan.

Provider of same-day delivery services for online shopping. The company partners 09/19/13 Deliv RPM , Upfront Series A 6.9 -- with online retailers to deliver products directly to consumers.

Comércio The company is a fashion e-commerce retailer that specializes in apparel, shoes, 09/17/13 Ontario Teachers' Pension Plan Later Stage VC 70.0 -- Digital BF accessories, beauty as well as home and decor of various brands on one platform.

The company's Web portal offers restaurant guide, from owner-run restaurants to 09/17/13 Restalo large restaurant chains, with tools for making reservations as well as posting about Active Venture Partners, Seaya Series B 10.0 -- dining experiences.

The company helps retailers to define strategy, implement media products, and 09/09/13 HookLogic Bain Capital, Intel Capital Series B 14.3 75.7 sell media products to advertisers.

Provider of online travel services for travelers departing from the Chinese cities DCM Group, Gobi, Highland, 09/04/13 Tuniu.com Series D 60.0 -- Beijing, Shanghai, Guangzhou and Shenzen. Sequoia Capital, Temasek

The company offers an online marketplace for consumers, brokers, agents, Vacation Bee Partners, Maveron, Meyer , 09/04/13 homeowner associations and resort managers to connect in the timeshare and Seed 5.0 12.1 Listing Service Peterson vacation ownership resale market. ______Source: PitchBook

Confidential 26 3Q 2013 Precedent Investments, $5M+ Deal Size Company ($M) Val. ($M) High $150.0 $850.0 Mean 26.5 227.7 Median 14.3 87.9 Low 5.0 12.1 Company Deal Size Date Target Target Description Investor(s) Deal Type Valuation ($M) ($M)

Vestiaire Operator of an online marketplace for the resale of luxury clothing and accessories. Balderton Capital, Condé Nast, 09/02/13 Series C 20.0 -- Collective The company curates, verifies and ships pre-owned clothing and accessories. IDInvest Partners, Ventech

Developer of a group-buying website. The company works as an online BEST Funds, Georgian Partners, 08/28/13 Buyers Unite marketplace, offering products such as lifestyle and home-decor products, travel Early Stage VC 5.0 -- Insight Venture Partners packages, spa packages.

Provider of an online shopping platform. The company's website offers a range of Accel Partners, Iconiq Capital, 08/23/13 Flipkart India products including apparel, accessories, cameras, laptops, software, kitchen Naspers, Tiger Global Later Stage VC 150.0 850.0 supplies, books, games and movies. Management

Provider of software for hotel bookings. The company provides mobile application Accel, Battery, Coatue 08/21/13 Hotel Tonight for hotels to fill last minute rooms and allows consumers to do bookings using their Management, First Round, GGV, Series D 45.0 299.9 smartphones. US Venture Partners

The company offers an online travel plan where users can check list of hotels, 08/08/13 Hotel Urbano national travel packages, international travel packages, holidays, special deals, Insight Venture Partners Series C 20.0 -- cruises and tour packages.

The company's mobile application unites shopping, loyalty programs, product Clutch Ben Franklin Technology, 08/05/13 recommendation and gifting, enabling consumers to find the best deals and share Series B 5.3 -- Holdings Safeguard Scientifics with other users from a single application.

The company provides an online service allowing clients to create a profile CrunchFund, Foundry, Madrona, A Place for 07/30/13 describing themselves and their dogs, browse profiles, read reviews and contact PETCO Animal Supplies, Rolling Series B 10.5 28.6 Rover dog sitters. Bay

Provider of e-commerce software to online retailers and merchants. The company 07/25/13 Bigcommerce provides a platform to small- and medium-sized businesses, enabling them to Revolution Series C 40.0 -- quickly launch professional stores.

Provider of an online wholesale fashion marketplace. The company offers the Advance Publications, Battery, 07/25/13 JOOR search features and social networking to the wholesale sector to streamline Canaan, Forerunner, Great Oaks, Series B 15.0 -- communication, discovery and buying. Landis, Lerer ______Source: PitchBook

Confidential 27 3Q 2013 Precedent Investments, $5M+ Deal Size Company ($M) Val. ($M) High $150.0 $850.0 Mean 26.5 227.7 Median 14.3 87.9 Low 5.0 12.1 Company Deal Size Date Target Target Description Investor(s) Deal Type Valuation ($M) ($M)

The company operates an online business marketplace enabling designers and 07/23/13 Balluun Finoris Series B 8.7 -- retailers to connect and conduct business online.

The company allows users to bet with friends, family, colleagues and others in its 07/16/13 Betable Venture51 Later Stage VC 20.0 100.0 betting marketplace and allows them to create their own bets.

Provider of cloud-based tools for the management and sale of returned, damaged 07/15/13 Optoro Grotech, Revolution Series B 23.5 -- and excess retail inventory.

Retailer of online fashion clothing and footwear for men, women and kids. The Investment AB Kinnevik, Summit 07/11/13 The Iconic company sells bags, sports equipments, fragrances, skincare, hair care products, Later Stage VC 26.4 -- Partners, Verlinvest men, women clothing.

Provider of an online social shopping platform. The company platform allows users Accel Partners, Schmidt Projekt- 07/10/13 Kleiderkreisel Early Stage VC 6.5 -- to buy, sell and swap their used clothing and accessories online. Service GmbH

Provider of TSM and mobile commerce and services platform. The company offers Sequent Jado Investments, Opus Capital, 07/08/13 software that enables consumers download payment cards and other credentials Series B 12.0 -- Software SBT Venture Capital to their mobile devices.

The company is a online shopping portal for pharmaceutical products such as Atomico, Daily Mail & General 07/03/13 ChemistDirect Early Stage VC 10.0 -- vitamins, medicines and other health related items. Trust, Lepe Partners

Provider of online take-out ordering service. The company provides gobal network Holtzbrinck, Kite, Kreos, 07/01/13 Delivery Hero of online food ordering marketplace where orders and payments can be placed Phenomen, PN, ru-Net, Team Series D 80.0 -- online and restaurants are peer-reviewed. Europe, Tengelmann

Operator of an online flash sales site. The company's sales begin at 12:00pm EST 07/01/13 Ideeli and showcase fashion for men, women, home decor and beauty at discounted -- Series E 12.0 -- prices in limited quantities. ______Source: PitchBook

Confidential 28 Appendix eCommerce Public Company Comparables

Confidential 29 U.S. eCommerce Comparable Public Companies Trading Metrics ($ in millions, except per share data) Stock Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA Company Ticker 09-30-13 Low High Cap. Value LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E U.S Internet Retailers (Web Only) Amazon Nasdaq:AMZN $312.64 $218.18 $320.57 $142,840 $138,419 2.1x 1.9x 1.5x NM 28.2x 20.5x Shutterfly Nasdaq:SFLY 55.88 25.18 59.93 2,188 2,060 2.9x 2.6x 2.3x 44.1x 13.8x 11.4x Overstock.com Nasdaq:OSTK 29.67 10.00 35.60 710 625 0.5x 0.5x 0.5x NM 14.9x 12.6x Blue Nile Nasdaq:NILE 40.93 28.90 43.00 524 477 1.1x 1.0x 0.9x 25.9x 20.3x 16.5x PC Connection Nasdaq:PCCC 15.09 9.82 17.65 398 334 0.2x 0.2x 0.1x 6.2x 5.2x 4.9x Vitacost Nasdaq:VITC 8.50 5.83 9.40 299 269 0.7x 0.7x 0.6x NM NA NM High 2.9x 2.6x 2.3x 44.1x 28.2x 20.5x Mean 1.3x 1.1x 1.0x 25.4x 16.5x 13.2x Median 0.9x 0.9x 0.8x 25.9x 14.9x 12.6x Low 0.2x 0.2x 0.1x 6.2x 5.2x 4.9x U.S. Retailers with Online Presence* Walmart NYSE:WMT 73.96 67.37 79.96 241,044 294,759 0.6x 0.6x 0.6x 8.5x 7.9x 7.6x Target NYSE:TGT 63.98 58.01 73.50 40,840 54,355 0.7x 0.7x 0.7x 7.3x 7.9x 7.0x Liberty Interactive Nasdaq:LINT.A 23.47 18.26 25.25 12,232 21,786 2.0x 2.1x 2.0x 12.3x 11.4x 10.7x Macy’s NYSE:M 43.27 36.30 50.77 16,703 22,193 0.8x 0.8x 0.8x 6.4x 5.9x 5.6x Grainger NYSE:GWW 261.71 184.78 276.38 18,688 18,697 2.0x 2.0x 1.8x 15.7x 12.3x 11.0x Best Buy NYSE:BBY 37.50 11.20 39.28 12,852 12,623 0.3x 0.3x 0.3x 4.1x 5.6x 5.3x Staples Nasdaq:SPLS 14.65 10.94 17.30 9,676 10,463 0.4x 0.4x 0.4x 4.9x 5.7x 5.7x Sears Nasdaq:SHLD 59.49 38.40 68.77 6,334 9,869 0.3x 0.3x 0.3x 48.6x NA 17.6x CDW Nasdaq:CDW 22.83 17.38 24.51 3,926 7,753 0.7x 0.7x 0.7x 11.5x 9.6x 9.2x Williams-Sonoma NYSE:WSM 56.20 41.99 61.56 5,458 5,257 1.2x 1.2x 1.1x 10.2x 8.7x 7.9x HSN Nasdaq:HSNI 53.62 47.47 65.00 2,924 3,079 0.9x 0.9x 0.9x 11.8x 9.1x 8.4x Office Depot NYSE:ODP 4.83 2.24 6.10 1,414 1,978 0.2x 0.2x 0.2x 7.5x 6.7x 6.5x OfficeMax NYSE:OMX 12.79 7.04 14.92 1,135 1,645 0.2x 0.2x 0.2x 8.6x 8.6x 8.3x Nutrisystem Nasdaq:NTRI 14.38 7.18 14.53 404 369 1.1x 1.0x 0.9x 11.8x 12.3x 8.0x 1-800-Flowers Nasdaq:FLWS 4.93 2.77 7.17 322 322 0.4x 0.4x 0.4x 9.6x 6.8x 5.2x Systemax NYSE:SYX 9.27 8.36 12.52 341 209 0.1x 0.1x 0.1x 2.3x NA NA High 2.0x 2.1x 2.0x 48.6x 12.3x 17.6x Mean 0.8x 0.8x 0.7x 11.3x 8.5x 8.3x Median 0.7x 0.7x 0.6x 9.1x 8.3x 7.9x Low 0.1x 0.1x 0.1x 2.3x 5.6x 5.2x ______Sources: Capital IQ as of 09/30/13, Internet Retailer 500 *Top U.S. Retailers by websales volume, or greater than 33% of revenue in websales

Confidential 30 European eCommerce Comparable Public Companies Trading Metrics ($ in millions, except per share data) Stock Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA Company Ticker 09-30-13 Low High Cap. Value LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E European Internet Retailers (Web Only) ASOS Holdings AIM:ASC 83.23 33.98 93.48 6,945 6,876 7.1x 5.1x 4.0x NM NM 43.6x Ocado LSE:OCDO 6.41 0.91 7.05 3,749 3,794 3.4x 3.0x 2.5x NM NM 31.6x Vistaprint Nasdaq:VPRT 56.60 28.17 57.54 1,949 2,137 1.8x 1.8x 1.6x 16.4x 14.1x 11.1x Yoox BIT:YOOX 34.30 13.33 39.25 1,981 1,982 3.7x 3.1x 2.5x NM 31.6x 23.4x Zooplus DB:ZO1 66.73 39.23 72.53 407 418 0.8x 0.8x 0.6x NM NM 30.6x High 7.1x 5.1x 4.0x 16.4x 31.6x 43.6x Mean 3.4x 2.8x 2.2x 16.4x 22.8x 28.1x Median 3.4x 3.0x 2.5x 16.4x 22.8x 30.6x Low 0.8x 0.8x 0.6x 16.4x 14.1x 11.1x European Retailers with Online Presence* Tesco LSE:TSCO 5.81 4.96 6.28 46,938 59,857 0.6x 0.6x 0.5x 7.5x 7.3x 7.1x Carrefour ENXTPA:CA 34.34 21.22 35.34 23,645 38,381 0.4x 0.4x 0.4x 11.8x 7.6x 7.1x Kering / PPR ENXTPA:KER 224.20 161.26 250.59 28,169 33,217 2.6x 2.4x 2.2x 14.1x 11.3x 10.1x Sainsburys LSE:SBRY 6.34 5.11 6.53 12,078 15,502 0.4x 0.4x 0.4x 7.4x 6.9x 6.5x Dixon Retail LSE:DXNS 0.76 0.32 0.79 2,766 2,699 0.2x 0.2x 0.2x NM 5.2x 4.7x Home Retail Group LSE:HOME 2.72 1.43 2.88 2,244 1,649 0.2x 0.2x 0.2x 3.9x 4.5x 4.3x High 2.6x 2.4x 2.2x 14.1x 11.3x 10.1x Mean 0.7x 0.7x 0.7x 8.9x 7.2x 6.6x Median 0.4x 0.4x 0.4x 7.5x 7.1x 6.8x Low 0.2x 0.2x 0.2x 3.9x 4.5x 4.3x

______Sources: Capital IQ as of 09/30/13, Internet Retailer 500 *Top European Retailers by websales volume, or greater than 33% of revenue in websales

Confidential 31 Specialized eCommerce Comparable Public Companies Trading Metrics ($ in millions, except per share data) Stock Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA Company Ticker 09-30-13 Low High Cap. Value LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E Marketplaces Tencent SEHK:700 52.46 30.56 54.47 96,182 92,983 11.1x 9.5x 7.3x 44.3x 25.6x 20.6x eBay Nasdaq:EBAY 55.80 45.66 58.04 72,942 67,202 4.3x 4.2x 3.6x 20.3x 12.5x 10.8x Rakuten JASDAQ:4755 15.13 6.53 15.39 19,906 20,078 4.1x 3.8x 3.4x 16.4x 15.6x 13.4x Mercado Libre Nasdaq:MELI 134.91 69.73 137.60 5,957 5,770 13.9x 12.2x 9.8x NM 34.4x 27.3x carsales.com ASX:CRZ 10.70 6.56 10.99 2,549 2,585 13.1x 11.5x 10.1x 27.4x 20.5x 17.6x Shutterstock NYSE:SSTK 72.72 21.00 76.12 2,619 2,506 12.6x 11.0x 8.7x NM NM 36.2x HomeAway Nasdaq:AWAY 27.96 19.58 34.30 2,494 2,158 6.9x 6.3x 5.2x NM 22.7x 18.1x High 13.9x 12.2x 10.1x 44.3x 34.4x 36.2x Mean 9.4x 8.4x 6.9x 27.1x 21.9x 20.6x Median 11.1x 9.5x 7.3x 23.8x 21.6x 18.1x Low 4.1x 3.8x 3.4x 16.4x 12.5x 10.8x Travel Priceline Nasdaq:PCLN 1,010.95 553.97 1,019.95 52,135 48,485 8.2x 7.2x 5.9x 33.4x 19.0x 15.2x Expedia Nasdaq:EXPE 51.81 45.69 68.09 6,790 6,238 1.4x 1.3x 1.2x 10.7x 7.6x 6.5x NYSE:OWW 9.63 2.07 13.26 1,052 1,280 1.6x 1.5x 1.4x 11.5x 9.0x 8.1x MakeMyTrip Nasdaq:MMYT 14.84 10.77 17.74 567 497 2.1x 5.2x 4.4x NM NM NM Travelzoo Nasdaq:TZOO 26.52 16.56 33.95 411 332 2.1x 2.1x 1.9x 8.9x 10.8x 9.3x High 8.2x 7.2x 5.9x 33.4x 19.0x 15.2x Mean 3.1x 3.5x 3.0x 16.1x 11.6x 9.8x Median 2.1x 2.1x 1.9x 11.1x 9.9x 8.7x Low 1.4x 1.3x 1.2x 8.9x 7.6x 6.5x

______Source: Capital IQ as of 09/30/13

Confidential 32 eCommerce Enablement Comparable Public Companies Trading Metrics ($ in millions, except per share data) Stock Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA Company Ticker 09-30-13 Low High Cap. Value LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E eCommerce Services Google Nasdaq:GOOG 875.91 636.00 928.00 296,237 246,854 4.3x 4.1x 3.6x 17.5x 11.6x 9.7x Baidu Nasdaq:BIDU 155.18 82.98 155.80 54,278 50,861 12.0x 10.1x 7.6x 37.9x 22.8x 18.1x Yahoo! Nasdaq:YHOO 33.17 15.65 33.85 35,001 33,344 7.0x 7.5x 7.3x 24.5x 22.1x 21.0x Nasdaq:YNDX 36.42 16.60 42.01 12,225 12,009 11.8x 9.9x 7.8x 43.3x 21.7x 17.4x Groupon Nasdaq:GRPN 11.21 2.60 12.76 7,539 6,355 2.6x 2.5x 2.2x NM 20.2x 15.9x ValueClick Nasdaq:VCLK 20.86 15.95 32.25 1,570 1,545 2.3x 2.2x 2.0x 10.1x 6.4x 5.9x Moneysupermarket LSE:MONY 2.45 2.16 3.60 1,322 1,284 3.9x 3.6x 3.3x 15.5x 10.0x 9.2x ChannelAdvisor NYSE:ECOM 36.63 14.25 41.25 902 821 13.7x 12.4x 9.9x NM NA NA High 13.7x 12.4x 9.9x 43.3x 22.8x 21.0x Mean 7.2x 6.5x 5.5x 24.8x 16.4x 13.9x Median 5.7x 5.8x 5.5x 21.0x 20.2x 15.9x Low 2.3x 2.2x 2.0x 10.1x 6.4x 5.9x eCommerce Infrastructure IBM NYSE:IBM 185.18 181.10 215.90 203,057 229,136 2.3x 2.3x 2.3x 8.7x 8.5x 7.9x Oracle NYSE:ORCL 33.17 29.52 36.43 154,529 139,960 3.7x 3.7x 3.6x 9.3x 7.6x 7.1x SAP DB:SAP 74.00 71.36 87.91 88,241 90,288 4.2x 3.8x 3.5x 13.1x 11.2x 9.9x Demandware NYSE:DWRE 46.33 23.90 49.11 1,571 1,467 16.5x 14.6x 10.8x NM NA NM Digital River Nasdaq:DRIV 17.87 12.80 20.29 581 316 0.8x 0.8x 0.8x 5.2x 9.8x 6.4x PFSweb Nasdaq:PFSW 5.97 2.14 6.10 99 91 0.4x 0.5x 0.4x 21.9x 9.6x 6.8x Intershop XTRA:ISH2 2.08 1.39 2.95 63 49 0.7x 0.7x 0.6x 9.6x NA NA High 16.5x 14.6x 10.8x 21.9x 11.2x 9.9x Mean 4.1x 3.8x 3.1x 11.3x 9.3x 7.6x Median 2.3x 2.3x 2.3x 9.4x 9.6x 7.1x Low 0.4x 0.5x 0.4x 5.2x 7.6x 6.4x

______Source: Capital IQ as of 09/30/13

Confidential 33 U.S. eCommerce Comparable Public Companies (Cont.) Operating Metrics ($ in millions, except per share data) LTM Revenue Growth LTM Revenue EBITDA Company Ticker As Of '12A - '13E 13E - '14E GM LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E U.S Internet Retailers (Web Only) Amazon Nasdaq:AMZN Jun 2013 22% 22% 26% 66,848 $74,469 $90,550 $2,924 $4,911 $6,761 Shutterfly Nasdaq:SFLY Jun 2013 22% 17% 53% 700 782 915 83 149 181 Overstock.com Nasdaq:OSTK Sep 2013 16% 8% 19% 1,249 1,274 1,379 37 42 49 Blue Nile Nasdaq:NILE Jun 2013 14% 12% 19% 431 458 514 15 23 29 PC Connection Nasdaq:PCCC Jun 2013 2% 3% 13% 2,180 2,203 2,273 63 64 68 Vitacost Nasdaq:VITC Jun 2013 20% 16% 23% 362 395 459 NM NA 4 U.S. Retailers with Online Presence* Walmart NYSE:WMT Jul 2013 2% 4% 25% 473,002 478,486 498,607 36,650 37,294 38,953 Target NYSE:TGT Aug 2013 3% 6% 30% 73,478 73,880 78,000 7,533 6,897 7,730 Liberty Interactive Nasdaq:LINT.A Jun 2013 3% 5% 39% 10,686 10,339 10,894 1,973 1,915 2,040 Macy’s NYSE:M Aug 2013 1% 3% 40% 27,878 28,019 28,896 3,730 3,768 3,959 Grainger NYSE:GWW Sep 2013 5% 8% 44% 9,287 9,439 10,191 1,485 1,524 1,694 Best Buy NYSE:BBY Aug 2013 (13%) NM 23% 48,152 42,972 43,135 1,889 2,236 2,374 Staples Nasdaq:SPLS Aug 2013 (4%) NM 26% 24,050 23,373 23,321 1,932 1,826 1,841 Sears Nasdaq:SHLD Aug 2013 (8%) (1%) 26% 38,440 36,803 36,359 NM NA 559 CDW Nasdaq:CDW Jun 2013 7% 6% 16% 10,415 10,794 11,422 758 807 840 Williams-Sonoma NYSE:WSM Aug 2013 7% 7% 39% 4,221 4,336 4,620 584 603 664 HSN Nasdaq:HSNI Jun 2013 5% 5% 36% 3,347 3,438 3,608 293 340 368 Office Depot NYSE:ODP Jun 2013 (4%) (1%) 30% 10,453 10,319 10,165 244 294 303 OfficeMax NYSE:OMX Jun 2013 (4%) (1%) 26% 6,745 6,672 6,603 140 190 197 Nutrisystem Nasdaq:NTRI Jun 2013 (11%) 11% 49% 347 352 393 15 30 46 1-800-Flowers Nasdaq:FLWS Jun 2013 3% 5% 41% 735 756 795 45 48 62 Systemax NYSE:SYX Jun 2013 (2%) 3% 14% 3,469 3,479 3,597 7 NA NA

______Sources: Capital IQ as of 09/30/13, Internet Retailer 500 *Top U.S. Retailers by websales volume, or greater than 33% of revenue in websales

Confidential 34 European eCommerce Comparable Public Companies (Cont.) Operating Metrics ($ in millions, except per share data) LTM Revenue Growth LTM Revenue EBITDA Company Ticker As Of '12A - '13E 13E - '14E GM LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E European Internet Retailers (Web Only) ASOS Holdings AIM:ASC Feb 2013 37% 29% 50% 974 1,335 1,721 81 122 158 Ocado LSE:OCDO May 2013 15% 21% 31% 1,103 1,250 1,516 47 71 120 Vistaprint Nasdaq:VPRT Jun 2013 10% 9% 66% 1,167 1,218 1,326 106 152 193 Yoox BIT:YOOX Jun 2013 30% 24% 29% 534 642 796 36 63 85 Zooplus DB:ZO1 Jun 2013 32% 23% 31% 496 556 682 NM 4 14 European Retailers with Online Presence* Tesco LSE:TSCO Aug 2013 3% 3% 7% 101,898 106,641 109,983 6,788 8,153 8,428 Carrefour ENXTPA:CA Jun 2013 NM 3% 19% 99,314 103,827 106,655 3,047 5,051 5,403 Kering / PPR ENXTPA:KER Jun 2013 6% 9% 62% 12,741 13,594 14,839 2,718 2,928 3,298 Sainsburys LSE:SBRY Mar 2013 (3%) 2% 5% 35,257 39,780 40,496 2,117 2,260 2,386 Dixon Retail LSE:DXNS Apr 2013 (1%) NM 9% 13,132 13,120 13,143 749 515 577 Home Retail Group LSE:HOME Mar 2013 2% 1% 32% 8,223 8,943 9,048 354 363 384

______Sources: Capital IQ as of 09/30/13, Internet Retailer 500 *Top European Retailers by websales volume, or greater than 33% of revenue in websales

Confidential 35 Specialized eCommerce Comparable Public Companies (Cont.) Operating Metrics ($ in millions, except per share data) LTM Revenue Growth LTM Revenue EBITDA Company Ticker As Of '12A - '13E 13E - '14E GM LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E Marketplaces Tencent SEHK:700 Jun 2013 40% 30% 56% 8,409 9,806 12,723 3,115 3,637 4,510 eBay Nasdaq:EBAY Sep 2013 14% 15% 69% 15,510 16,073 18,557 4,604 5,386 6,197 Rakuten JASDAQ:4755 Jun 2013 3% 11% 88% 4,875 5,266 5,864 1,128 1,287 1,497 Mercado Libre Nasdaq:MELI Jun 2013 27% 23% 78% 416 474 586 147 168 212 carsales.com ASX:CRZ Jun 2013 9% 14% 83% 197 224 255 109 126 147 Shutterstock NYSE:SSTK Jun 2013 34% 26% 62% 199 228 287 43 48 69 HomeAway Nasdaq:AWAY Jun 2013 43% 21% 84% 311 341 412 57 95 119 Travel Priceline Nasdaq:PCLN Jun 2013 28% 22% 81% 5,879 6,723 8,235 2,104 2,551 3,197 Expedia Nasdaq:EXPE Jun 2013 17% 13% 78% 4,391 4,702 5,298 608 826 962 Orbitz NYSE:OWW Jun 2013 9% 5% 81% 817 850 895 110 142 159 MakeMyTrip Nasdaq:MMYT Jun 2013 (56%) 18% 21% 242 96 113 NM NA 4 Travelzoo Nasdaq:TZOO Sep 2013 7% 7% 89% 158 161 173 27 31 36

______Source: Capital IQ as of 09/30/13

Confidential 36 eCommerce Enablement Comparable Public Companies (Cont.) Operating Metrics ($ in millions, except per share data) LTM Revenue Growth LTM Revenue EBITDA Company Ticker As Of '12A - '13E 13E - '14E GM LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E eCommerce Services Google Nasdaq:GOOG Sep 2013 19% 14% 57% 57,386 59,593 67,981 17,850 21,319 25,376 Baidu Nasdaq:BIDU Jun 2013 41% 32% 75% 4,252 5,053 6,673 2,154 2,226 2,805 Yahoo! Nasdaq:YHOO Sep 2013 (11%) 3% 70% 4,760 4,433 4,552 1,187 1,508 1,586 Yandex Nasdaq:YNDX Jun 2013 29% 26% 76% 1,014 1,219 1,535 448 553 690 Groupon Nasdaq:GRPN Jun 2013 10% 15% 62% 2,417 2,557 2,944 133 314 400 ValueClick Nasdaq:VCLK Jun 2013 6% 8% 62% 686 703 761 218 241 263 Moneysupermarket LSE:MONY Jun 2013 8% 7% 77% 326 361 388 130 128 140 ChannelAdvisor NYSE:ECOM Jun 2013 24% 25% 73% 60 66 83 NM NA NA eCommerce Infrastructure IBM NYSE:IBM Sep 2013 (4%) 1% 49% 101,356 100,318 101,688 25,755 27,074 28,863 Oracle NYSE:ORCL Aug 2013 1% 5% 81% 37,371 37,498 39,314 16,259 18,393 19,782 SAP DB:SAP Jun 2013 10% 8% 72% 21,629 23,620 25,452 7,410 8,079 9,076 Demandware NYSE:DWRE Jun 2013 26% 36% 71% 89 100 136 NM NA 4 Digital River Nasdaq:DRIV Jun 2013 3% (3%) 81% 399 398 387 29 32 49 PFSweb Nasdaq:PFSW Jun 2013 (18%) 8% 19% 222 197 214 10 9 13 Intershop XTRA:ISH2 Jun 2013 (3%) 8% 28% 71 72 78 NM NA NA

______Source: Capital IQ as of 09/30/13

Confidential 37 Disclaimer

Disclosure: This newsletter is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or buy any security. Any reference to or omission of any reference to any company in this newsletter should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. The newsletter is published solely for the general information of clients and friends of Headwaters MB, LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. Opinions expressed are our present opinions only and are subject to change without notice. Additional information is available upon request. The companies mentioned in this newsletter may be clients of Headwaters MB, LLC. The decisions to include any company in this newsletter is unrelated in all respects to any service that Headwaters MB, LLC may provide to such company. This newsletter may not be copied or reproduced in any form, or redistributed without the prior written consent of Headwaters MB, LLC. The information contained herein should not be construed as legal advice.

Confidential 38