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Total Estimated Royalties Earned by the LSBA $117,450

Net Royalties Received by the LSBA $117,450

Option 2 Example: 10% Upgrade Royalty

New free Smokeball Bill subscribers 1000
*Free Smokeball Bill subscription costs per user $588
% of Smokeball Bill subscription costs paid by Smokeball 85%
% of Smokeball Bill subscription costs paid by the LSBA 15%
Amount the LSBA pays Smokeball $88,200

Estimated % of LSBA members that upgrade 50% (500 users)
*Estimated TCV of upgrade per user $4,698
Upgrade Royalty % Payable 10% of TCV
Total Estimated Royalties Earned by the LSBA $234,900

Net Royalties Received by the LSBA $146,700
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Note, these estimates show how much the LSBA could earn if 1000 members sign up for the free
Smokeball Bill offer and 50% of those members upgrade.

* Estimates are based on the following calculations:
• Free Smokeball Bill subscription cost: $49 PUPM, average term of 12 months
• Estimated TCV of upgrade per user: $196 PUPM, average term of 24 months

D) Offer Terms & Marketing Plan Commitment

Contract Term:

Because of the large investment for roll out and administration of this program, Smokeball would like
to enter into an initial 5-year exclusive agreement to provide its trust accounting software, Smokeball
Bill, for free to LSBA members. The exclusivity of this agreement does not restrict the LSBA from
offering any other member benefit partner discounts (such as with case management software
partners or payment providers); rather, it only pertains to exclusivity in relation to Smokeball Bill
being the only FREE trust accounting software provider offered to the LSBA’s members during the
specified length of time.

Joint Marketing Plan:

This offer will require unique marketing and promotion by both parties to ensure that: (1) LSBA
members take advantage of the offer and are aware of it, and (2) LSBA members understand
Smokeball’s full capabilities outside of Smokeball Bill, as some members may want greater case
management functionality available in Smokeball’s other product tiers.

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CONFIDENTIAL