Proposal for. Complete Customer Loyalty System. Presented by: Steve Karas and Associates 3341 E Turquoise Phoenix, AZ 85028

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Proposal for Complete Customer Loyalty System Presented by: Steve Karas and Associates 3341 E Turquoise Phoenix, AZ 85028 602-494-9090 602-494-9134 Fax skaras@home.com www.qreward.com www.stevekaras.com

System Price 5 Retail Station Computers $14,970.00 1 Server Computer $ 4,995.00 5 POS Receipt Printers included 5 POS Card Readers included 5 Quick Rewards Software included 1000 Custom Printed Plastic VIP cards included 4000 Customer Application included 5 Counter Displays included 5 Delivery & Installation included 5 Training on Retail Stations included 1 Training on Server Computer included Additions 1500 Custom Printed Plastic VIP cards $ 1,508.00 Travel & Lodging (2 employees/3 days) $ 1,500.00 Total Quick Rewards System $22,973.00 Discount Multi systems $ 2,000.00 Grand Total Price is valid until 01/15/02 $20,973.00 Monthly Payment 60 month lease, $1.00 purchase option $ 480.00 at the end of the lease. Monthly Payment Each Stores Monthly Contribution $ 96.00 Deductions (any store that will not need the following equipment) $ 500.00 Computer $ 200.00 Receipt Printer $ 100.00 Card Reader NOTE Each store must install a dedicated phone line for the Quick Rewards System.

How The System Works Sign Up Process A customer will see the counter display at the store, will ask about it. The store employee will explain the Quick Rewards system and give the customer an application (Fig 2) to fill out. After the customer complete the application they will return it to the store employee and the store employee will give the customer his new Preferred Customer card (Fig 1), writing the card number on the application. The Store employee should also mention to the customer that their VIP card will only be active after the application has been entered into the database by the mall office and this process usually takes 24 hours. However the customer can take any store receipts from today to the mall office and the office employee will make note to apply points for today s purchases based on receipts that are presented by the customer. Fig 1 VIP Card Fig 2 Sample Customer Application

Data Captured Address for future mailings Quick Rewards will print mailing labels. Email for future mailings Quick Rewards will send emails to all customers. Birthday for customer appreciation Quick Rewards will print out gift certificates. To be sent on customers birthday. The completed Customer Application should be turned into the mall office ASAP so that the data can be entered into the Quick Rewards database. Sales Process When a customer makes a purchase at a participating store the will pay as normal and hand the cashier their VIP card. The employee will swipe the card and enter the amount of the purchase. That s it everything else happens without any user intervention. The Retail Station Computer will connect to the Server by phone (similar to you credit card terminal) and transmit the sales information, the server will transfer the information to be printed on the Quick Rewards receipt. The receipt (Fig 3) will be printed and the cashier will hand the receipt to the customer. Fig 3 - Sample Receipt If this purchase increases the points accumulated by the customer to the amount required to earn a gift certificate (Fig 4) then a gift certificate will automatically be printed at the same time as the receipt. Should a gift certificate be printed then the server will adjust the point in the database automatically by subtracting the points required to earn a gift certificate from the customers point balance.

Fig -4 Sample Gift Certificate Custom Designed Cards Steve Karas and Associates manufacture s your VIP card on premium quality 30mm plastic using 4 color printing. We encodes the magnetic strip on the back with the customer account number and print it on the front of the card. The back of the cards can be printed in black ink for an additional $ 0.30 each and color for $0.80. Additional card may be ordered 24 hours a day online for your convenience. We keep track of the numbers sequence so you can be assured there will be no duplicates.

Retail Station Computer The emachines T1096 PC is powered by the Intel Celeron 900 MHz. and comes standard with 128 MB RAM, a built-in 48x Max. CD-ROM, 40 GB hard drive and an internal 56 K V.90 fax/modem with an eview 17P2 monitor. Internet ready, it comes loaded with Microsoft Windows XP Home Edition, Microsoft Works 2000, Money 2002, Encarta Online and other application software. Features: Intel Celeron 900 MHz (w/128 KB) Intel 810 Chipset, 100 MHz FSB 128 MB SDRAM 40 GB hard drive 48x max-speed CD-ROM eview 17p2 17" monitor (16.0 VIA) Video: Intel DirectAGP 3D (810 Shared) video Integrated AC '97 audio 56 K ITU V.90 fax/modem 3.5" (1.44 MB) diskette drive 104-Key standard keyboard Dimensions: 22" L x 21" W x 32" H Warranty: One-year I/O Interfaces: 2 USB ports (1 front, 1 rear) 1 Serial/1 parallel/1 midi/ Game 2 PS/2 (mouse and keyboard) Audio In & Out Microphone In Additional Software: Microsoft Windows XP Home Edition Microsoft Works 2000 Money 2002 Encarta Online

Receipt Printer Epson The TM-U200 is an ideal low cost printer for point-of-sale applications. The modular user-friendly design, graphics capability, and 3.5 lines per second print speed offer reliable high performance in a compact, lightweight design. The TM-U200 features modular interface boards that enable users to select from bi-directional parallel, RS- 232C, RS-422, RS-485, ethernet and USB interfaces simply by ordering a new module. Other features include a paper end detector that automatically alerts the user when the printer is out of paper, an auto cutter and take up, and the ability to print one original plus two copies. Now available in Epson Dark Gray (EDG). Card Reader The MiniMag Intelligent Swipe Reader is designed for POS and desktop applications where space is at a premium. The entire unit is just 90mm long (about the length of a credit card), giving it the smallest footprint of any unit with comparable features. The MiniMag is a fully intelligent swipe reader that can be programmed to divide, rearrange, edit, and validate fields of entered data. It can also automatically distinguish AAMVA and CA DMV formats. The MiniMag reads up to three tracks of information with a single swipe in either direction. Its standard-length slot makes it easy to use. Both beeper and LED indicators signal a successful read. The MiniMag Intelligent Swipe Reader delivers exeptional functionality and value in the smallest possible package. It can be used as a free-standing unit, or permanently mounted with threaded inserts on the bottom of the reader. TTL, RS-232, keyboard wedge, and USB/Keyboard interfaces are available.

Server Computer This Compaq 5000T desktop comes loaded with Microsoft's newest operating system, Windows XP Home Edition and an Intel P4 1.6 GHz processor. Intel P4 1.6 GHz processor with Microsoft Windows Home Suite software. 400 MHz Front Side Bus 256 MB 133 MHz SyncDRAM 60 GB Ultra DMA hard drive 16x DVD-ROM drive 24x CDRW drive (24x/12x/48x) 64MB SDR nvidia GeForce2 MX 400 graphics card with TV out - 2048 x 1536 @ 75Hz SoundBlaster Live! Value 5.1 audio CV935 19" monitor (18.0" VIA) JBL platinum speakers with digital audio port 56K ITU V.90 data modem Integrated 10/100 Base-T Ethernet Card Three PCI expansion slots: One PCI slot used with modem installed; two PCI slots open for expansion One 4x AGP graphics Slot Six total expansion bays; one 3.5" and one 5.25" drive bay open for expansion 1.44 MB diskette drive Internet Scroll Mouse Compaq USB Internet keyboard CPU dimensions: 8.9" W x 17" D x 17" H CPU weight: 25.5 lbs. I/O Interfaces: Four USB ports (2 front, 2 back) One RJ45 Networking port One Serial RS-232C compatible, DBg connector (16550) One Parallel EPP/ECP standard centronics compatible interface (DB25 connector) Two RJ-11 phone jacks (1 input, 1 output) Audio ports (line-in, line-out and microphone-in) Two PS2 ports (for mouse and keyboard) Monitor connection (VGA) Compaq Extra Mile Service: 1-year US limited warranty: End user replaceable parts and carry-in labor Technical support 24 hours a day/ 7 days a week: 800-652-6672 Personalized Online Assistance: www.compaq.com/support/contact_compaq/email.html