Customer Count CHUB Customer Count 2014 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 2016 1Q 2017 Customers 8,599 9,559 9,619 9,726 9,930 10,094 10,094 10,801 Growth, % 11.2% 8.1% 5.8% 6.6% 5.6% 5.6% 12.3% • 2015 vs. 2014 comparisons are affected by the acquisition of Mercent in January 2015. More on this later. • The decelerating growth in 2016 was mostly caused churning ex-Mercent customers as opposed to issues within the core dropship offering. More on this later. Caro-Kann Capital LLC 28