Client Services Update

May 2013

Table of Contents

• Overview of the Company Goals

• Client Services Goals and Areas of Focus

• Summary of Organizational Updates

• Review of each Organizational Area

• Advisory Services• Advisory Services

• Professional Services

• Business Analysis and Support (BAS)

• Delivery Management

• Customer Support

• Remainder of the Year and Go-Forward

25/23/2013

Overview of the Company Goals

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2013 Company GoalsCompany Goals – Bonus At-Risk Matrix

1. Annual Contract Value (ACV) - $41.56 Million

2. EBITDA - Pre-Bonus Target of 10.26 Million

Year Ending 2013 Pre-Bonus EBITDA

ACV Value 7.10 8.21 8.47 8.72 9.24 9.75 10.13 10.26 11.03 11.29 14.11 15.39

39.955 - 40.7 52.9 65.1 93.5 122.0 152.5 162.6 211.4 227.7 345.6 398.5

39.956 195 602 724 846 1,130 1,415 1,720 1,821 2,309 2,472 3,651 4,180

Company Bonus Funding

• Total $3.8 Million

• Company Goals - $2.4

• Individual Goals - $1.6

Bonus Funding Matrix *

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39.956 195 602 724 846 1,130 1,415 1,720 1,821 2,309 2,472 3,651 4,180

40.116 226 633 755 877 1,162 1,446 1,751 1,853 2,341 2,503 3,682 4,211

40.276 258 664 786 908 1,193 1,477 1,782 1,884 2,372 2,534 3,714 4,242

40.755 468 875 997 1,119 1,403 1,688 1,993 2,095 2,583 2,745 3,924 4,453

40.915 546 953 1,075 1,197 1,482 1,766 2,071 2,173 2,661 2,823 4,002 4,531

41.395 741 1,148 1,270 1,392 1,677 1,961 2,266 2,368 2,856 3,018 4,197 4,726

41.555 781 1,187 1,309 1,431 1,716 2,000 2,305 2,407 2,895 3,057 4,237 4,765

42.034 976 1,382 1,504 1,626 1,911 2,195 2,500 2,602 3,090 3,253 4,432 4,960

42.194 1,054 1,460 1,582 1,704 1,989 2,273 2,578 2,680 3,168 3,331 4,510 5,038

42.673 1,288 1,694 1,816 1,938 2,223 2,508 2,813 2,914 3,402 3,565 4,744 5,272

42.833 1,366 1,773 1,894 2,016 2,301 2,586 2,891 2,992 3,480 3,643 4,822 5,350

43.952 1,639 2,046 2,168 2,290 2,574 2,859 3,164 3,265 3,753 3,916 5,095 5,624

44.751 1,756 2,163 2,285 2,407 2,691 2,976 3,281 3,383 3,870 4,033 5,212 5,741

* Subject to extreme timing examples

Client Services Goals and Areas of Focus

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2013 Client Service Goals

Labor Category CompanyGoal %

Individual Goal %

Analyst * 20% 80%

Senior Analyst 40% 60%

There will be two company objectives for client services and specific client services goals that will be part of the individual goals. The following summarizes the two company objectives, the weighting between company and individual by labor category and the client services individual goals.

Company Goals

1. Annual Contract Value (ACV)

2. EBITDA

Client Services Goals and Weightings

Goal Weighting

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Senior Analyst 40% 60%

Manager 60% 40%

Senior Manager 70% 30%

Director 85% 15%

Vice President 100% 0%

Executive Vice President

100% 0%

Client Services Goals and Weightings

1. Maximize Delivery Efficiency (50%)

2. Increase Customer Satisfaction (50%)

3. Comply with all Internal Processes (-10%)

The model is very consistent to prior years; however, the weighting between company and individual has shifted towards a higher percentage based on the company performance.

* Analyst, consistent with prior years are not bonus eligible, but their year-end salary base increases are dependent

both company and individual performance.

2013 Client Service Goals

Maximize Delivery Efficiency Increase Customer Satisfaction• Reduce the BAS LOE by 35% from 2012 baseline LOE.

• Manage to target billable utilizations and productivity utilizations by Labor Category.

• Integrate Offshore into a primary role into the Client delivery process.

• Develop a comprehensive Resource Management process including capacity planning, skill set inventory,

• Produce high-quality work deliverables to our customers by the following:

� Continuous focus on learning new Evolv features, asset class models, and industry relevant content – develop one’s expertise.

� Deliver accurate and presentable deliverables that are customer ready.

� Ensure key controls are executed and proper review is

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process including capacity planning, skill set inventory, and “warm” recruiting strategy for key roles.

• Develop a detailed and integrated execution run book with key controls for each BAS client tied to Evolv 3.1.3.

• Implement a change management framework for management of all changes into BAS production.

• Establish a process to properly capture contractual and internal SLAs, key customer issues/questions and root cause analysis that enables us to improve our resolution times and continuously improve our processes.

• Effective management of all delivery engagements around project scope, budget, risk, and change management.

� Ensure key controls are executed and proper review is performed over all deliverables.

• We must prove to our customers that we are reliable and dependable with our delivery by setting clear expectations with customers on project scope, timing, and any commitments made during the project. We must deliver on our commitments.

• Establish a positive relationship with our customers by effectively communicating, listening, and personally interacting with our customers.

• Continue to enable our customers access to Evolv and increase their usage of Evolv platform through training and customer support.

2013 Client Service Goals

Comply with Internal Processes• 100% compliance with Time and Expense Reporting

timing and accuracy.

• Adhere to Customer Support procedures and protocols.

• Leverage and provide feedback to improve the current tools built to assist in delivery including Confluence, JIRA, Alfresco, and Zendesk.

• Conduct at least monthly one on one meetings with

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• Conduct at least monthly one on one meetings with direct reports and comply with Performance Management timelines and processes.

Summary of Organizational Updates

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May 2013 Organizational Structure EVP of Client

Services

Advisory Services

Professional Services

Delivery Management

Business Analysis & Support

VP VP, BAS

Danielle Brogan

Senior Manager,

Customer Support

VP, Customer Support

Sandrine MoreauDirector, Advisory

ServicesDavid Payne

Director, Delivery ManagementSteven Shaffer

VP, Professional Services

Olivia Peterson

Senior Manager, Implementation

Manager, Senior Manager,

Credit Risk

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Dir

ec

tor

/ M

gt

Senior Manager, DM Professional

ServicesJocelyne Dao

Senior Manager, BAS Controllers

Andy Lang

Manager, DM BAS Services

Chris Ridgway

Implementation Services

Scott Kann

Senior Manager, SIT PMO

Rabea Nawaz

Senior Manager, SIT – Accounting

Travis Mueller

Manager, Customer Support

Jamal Waris

Senior Manager, SIT/

Implementation –Valuation

Pete Kovacs

Senior Manager, BAS OperationsDeanna Dabney

Senior Manager, BAS ControllersDavid Goldstein

Senior Manager, BAS ControllersMasha Muzyka

Senior Manager, BAS Controllers

Chuck Hall

Senior Manager, BAS Controllers

Dale Hotz

Offshore Lead -Valuation

Sana Naushad Khan

Offshore Lead -Accounting

Ahmer Bin Naseem

Offshore Lead, Customer Support

Khawaja Omair Ahmed

Manager, DM Resources

Jenny Angelova* Note: green shaded

cells represent Offshore employees.

Manager, Credit Risk ServicesGreg Izydorzyk

Manager, Credit Risk ServicesAaron Graham

Senior Manager, Credit Risk

ServicesCheng Tu

Manager, Credit Risk Services

Michael Lin

Credit Risk Services

Pete Kovacs

Organizational Update Highlights

• Promote existing leads into Vice President roles with clear ownership and accountability for their respective areas.

• Minimize any additional organizational changes so that we do not lose focus or momentum on our key goals for this year.

• Formally establish Advisory Services offering with executive management fully engaged.

• Leverage our delivery management model across all of delivery areas (Advisory

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• Leverage our delivery management model across all of delivery areas (Advisory Services, Professional Services, and BAS) to provide more consistency with our level of effort analysis and integrated resource capacity planning.

Review of each Organizational Area

Advisory Services

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Advisory Services

Purpose: To provide standard and custom services designed to leverage expertise of the company.

Objectives:

� Leverage our company expertise and develop new technology enabled � Leverage our company expertise and develop new technology enabled services that provide our customers with value added analysis.

� Convert these technology enabled services into recurring BAS ready offerings or new subscription fees from our customers.

� Build trusted advisor relationships with our customers who first look to us to solve their business challenges.

� Provide new opportunities and approaches to penetrate and gain new customers

� Gain additional insight into market demands and trends.

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Advisory Services

Current Service Offerings:

Sensitivity Analysis To better understand the sensitivity of your loan portfolio's credit and financial exposure to changes in model assumptions and resulting impacts to credit losses, NPVs, cash flows, provision, and forecasted accretion.

Scenario Analysis To better understand the sensitivity of your loan portfolio's credit and financial exposure given various economic scenarios (house price index, GDP, unemployment, interest rate) and resulting

5/23/2013 14

price index, GDP, unemployment, interest rate) and resulting impacts to credit losses, NPVs, cash flows, provision, and forecasted accretion.

Stress Testing To support your compliance with CCAR and Dodd Frank.

Pre-Bid Due Diligence To support your proposed bid based on the valuation of a purchased loan portfolio or bank acquisition including CDI.

Back-Testing Analysis To compare actual versus expected for defaults, severity, and prepays and provide support analysis for go-forward model assumptions changes.

Review of each Organizational Area

Professional Services

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Professional Services

Purpose: To provide standard and custom services designed to help customer implement the product faster, use the product more effectively and make the product more efficient.

Provide end-to-end support for new and existing clients through:

� Implementation Services – configuration and boarding of loans for new clients as well as implementation of changes / new features for existing clients

� Solution Integration Services – participation in the end-to-end release process, configuration governance, delivery team training and quality control

� Other Professional Services – system and data integration services, custom report development, and external training

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Review of each Organizational Area

Business Analysis & Support

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Business Analysis and Support (BAS)

Purpose: To provide end-to-end process supporting our customer’s financial close processes, accounting and credit risk analysis, internal and external reporting, and overall strategy.

Objectives:

� To build a strong partnership and be seen as an extension of the Bank enabling it to deepen and broaden it’s capabilities.

5/23/2013 18

enabling it to deepen and broaden it’s capabilities.

� To provide a well controlled production process that meets the regulatory standards for critical third party vendors and fully supports a Bank’s SOX compliance.

� To leverage our partnership to expand our product and service offerings to our customers.

� To leverage the expertise of our customer base to bring “best practices” back to each of our customers.

BAS Organization

Accounting

Operations

Controllers Financial Planning

and Analysis

Credit Risk

• Execute end-to-end process with SOX controls

• Manage daily run book including status and issues

• Responsible for the oversight of the monthly close process including SOX controls

• Responsible for the

• Responsible for working with customer and developing a forecast of the financial results

• Responsible for working with customer on generating the quarterly estimated cash flows

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status and issues• Prepare weekly

status reports including budget analysis

• Responsible for the completeness and accuracy of the financial results package

• Primary lead on communicating the financial results to the customer

• Work with client relations to maintain client relationship

financial results• Prepare the financial

results package and attributing any variance of actual to forecast

cash flows• Prepare and review

valuation package with customer that supports the estimated cash flows

• Support any Back-Testing Analysis

BAS Delivery Model

ControllerController

Accounting Operations Lead

Accounting Operations Lead

Integrated BAS Team

ControllerController

Accounting OperationsAccounting Operations

Typical Bank Team

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• Delivery model differs from the organizational model but aligns consistent with the bank with the exception of Credit Risk

• By integrating Credit Risk under the Controller in the delivery model, we should be able to bridge the current Bank challenges between Finance and Credit

• Primary communications between BAS and Customer are aligned as well

FP&A LeadFP&A Lead

Credit Risk LeadCredit Risk Lead

FP&AFP&A

Credit Risk ManagementCredit Risk

Management

Review of each Organizational Area

Delivery Management

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Delivery Management

Purpose: To provide a consistent delivery methodology and integrated resource capacity planning process for all customer service offerings.

Objectives:

� To provide the support for all SOWs governing our delivery including scope, level of effort estimates, and project assumptions.

To manage or support the day-to-day delivery and ensure the proper

5/23/2013 22

� To manage or support the day-to-day delivery and ensure the proper governance structure is established and maintained throughout the project.

� To manage and integrate a resource capacity planning process for all of client services including a pooled/shared analyst model.

� To provide support to our delivery leads with operational metrics and reporting analysis to better manage their business.

Review of each Organizational Area

Customer Support

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The Role of Customer SupportCustomer Support is here to track, manage, follow up and resolve incidents raisedand other service requests made by customers.

Customers are both external and internal.

Definition of an Incident – An event which is not part of the standard operation of a service and which causes or may cause disruption to or a reduction in the quality of services and customer productivity.

The Responsibilities of Customer Support

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The Responsibilities of Customer Support

• To have an efficient process to identify, manage, and resolve incidents and other service requests raised by customers.

• To provide transparency into how we are performing to meet customer needs including incident reporting, escalation, and customer service level agreement performance.

• To facilitate a post issue root cause analysis and provide tangible action items for the company to make continuous process improvement in customer service and quality.

Everyone at Primatics has role within the Customer Support process.

Customer Support Process and Protocols

Customer

Customer

Support

Tier 2 Accounting &

Valuation

R&D

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Internal

Teams

Support

Tier 1

Tier 2 Engineering &

Operations

R&D Tier 3

• Tier 2 Accounting & Valuation – consists of full-time on- and off-shore employees in Customer Support as well as a rotating team of identified SMEs in delivery. These SMEs will be on-call during a rotating schedule to address an S1 or S2 issue that may arise.

• Agent role assignments will be created for all Tier 2 Leads and there will be a link created between Zendesk and JIRA that will be made visible in Confluence

Remainder of the Year and Go-Forward View

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Remainder of the Year Focus

• Focus on executing on the critical goals of maximizing our delivery efficiency with a heavy emphasis on reducing the LOE on our BAS delivery

• Improve our quality of delivery and ability to manage change in our BAS production process – We must stabilize our current BAS delivery and develop detailed run book and operational procedures

• Migrate and train several customers on the Valuation platform so they can perform the quarterly cash flow re-estimations and execute various sensitivity analysis

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quarterly cash flow re-estimations and execute various sensitivity analysis

• Sell and deliver additional Advisory and Professional Service offerings

• Start to develop, cross train and provide opportunities for our analyst pool to broaden their exposure to multiple delivery areas and implement a pooled/shared resource model.

Future Organizational Structure EVP of Client

Services

Advisory Services

Professional Services

Delivery Management

Business Analysis & Support

VP VP, BAS

Danielle Brogan

Customer Support

VP, Customer Support

Sandrine Moreau

Director, Advisory Director, Delivery

VP, Professional Services

Olivia Peterson

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Dir

ec

tor

/ M

gt

DM Professional / AdvisoryServices

BAS Operations

BAS Controller

Director, Advisory Services

David Payne

Director, Delivery ManagementSteven Shaffer

Advisory Services

Manager, DM BAS Services

Implementation Services

Data and Reporting Services

Education/ Training Services

Customer Support

BAS FP&A

Credit Risk Services

Production Change

Management and Quality Control

Solutions Integration

Supported by a pooled / shared analyst resource model