Value Management Group International, LLC : Product Control File Review

1. V M G I Value Management Group International, LLC: Product Control File Review

2. Discussion Items • Overview and Qualifications: Value Management Group International LLC (“VMGI”) • Product Control File • Importance of the Product Control File • Product Control File Review • Next Steps • VMGI Contact Information

3. Overview and Qualifications: Value Management Group International, LLC (“VMGI”) • We assist card issuers in the realization of performance improvement through superior strategy, operations, and financial management. • VMGI possesses the requisite experience and skills needed to be successful…those skills include: • Strong analytical competence • Broad exposure to front and back office environments • The right balance between creativity and practicality • Deep industry insights and knowledge • VMGI’s Mission: To offer the most in-depth and insightful advice to improve the financial performance of credit card issuers. • VMGI personnel have experience working with a number of the leading U.S. card issuers, including: * Wells Fargo Bank * First USA * GE Capital * American Express * Citibank * USAA • VMGI has experience in many different kinds of projects with card issuers such as: * Systems and Operational Performance Improvement * Strategy Development and Implementation * System Conversion Assistance * Vendor Services Review * Budget Management * Competitive Assessments * Contract Negotiations * Revenue Enhancement • VMGI personnel have assisted a number of card issuers in the identification and realization of third party processor performance improvement opportunities. We possess in-depth knowledge of First Data Resources (FDR) and Total System Services (TSYS) and the associated costs of doing business with these organizations.

4. Overview and Qualifications: VMGI’s unique approach to management consulting has delivered outstanding results for our clients • VMGI strives to deliver projects in which: • The measurement of relative success is clear • The client is fully aligned with the project goals and objectives • There is frequent communication and consensus regarding project progress and results • VMGI Staffing-Our relatively small project teams are comprised of highly experienced and smart consultants that quickly diagnose the situation and then develop and manage the best solution. • Post Project Management-We typically provide post-project support from the same VMGI project personnel in an effort to provide consistent post-project support and maximize benefit realization. • The benefits from our unique approach to Management Consulting have been outstanding: • A recent project is projected to yield a five year return that is approximately 80 times greater than VMGI’s Professional Fees. • A recent project identified annual performance improvement opportunities of approximately 20 times greater than VMGI’s Professional Fees.

5. Importance of the Product Control File • For Credit Card Issuers that process with First Data Resources (FDR) the Product Control File (PCF) is the life blood of revenue generation and product management • The PCF controls mission critical functions such as ·        • Pricing, including fees, finance charges, introductory rates and penalty pricing • Rewards and/or transaction-based pricing programs (ALP/TLP) • Plastics generation and the mailing of plastics • Report production • The PCF is complex, allowing management literally thousands of choices when setting up a portfolio. The differentiated products within a portfolio are all made distinct by PCF settings

6. Product Control File Review • Due to the sensitive nature of the functions involved in the PCF it is of tantamount importance that the settings are reviewed periodically for consistency and accuracy • Inaccurate file settings can be responsible for impaired interest and fee revenue. Errors in the PCF can lead to systematic undercharging of fees and interest • Inaccurate PCF settings can also lead to overcharging of fees and interest. Because many of the functions controlled by the PCF are publicly disclosed there is legal liability • Examples of problems caused by inaccurate PCF settings include but are not limited to: • Paying for transaction level pricing (TLP) flap balances after the TLP balance has been paid down by customer • Not charging appropriate fees, or not at the correct rates • Not charging interest on certain accounts • Introductory rates not expiring as intended • Internal Operations are impacted by the Product Control file as well, for example: • Operations such as risk policy associated with plastics re-issuance can be impacted by inaccurate settings • FDR generated management reports are controlled by the PCF. Settings that are not periodically reviewed can lead unnecessary reports expense • Other Opportunities • Simply having a outside “fresh look” review current PCF setting decisions can lead to operational improvements and innovation within the portfolio

7. VMGI would like to meet with your organization to accomplish the following objectives • Personally introduce VMGI • Our qualifications • Our experience • Discuss potential project structures, approaches, and compensation alternatives

8. VMGI Contact Information VMGI Contact • Scott Smith, Executive Director, VMGI P.O. Box 406 Chesterfield, MO 63006-0406 Phone: 314 409-2476 Email: sesmith@vmgillc.com