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 Professional Services Business Analysis and Support (BAS) Delivery Management Customer Support

Remainder of the Year and Go-Forward

5/23/2013

Overview of the Company Goals

2013 Company Goals

Company Goals Bonus At-Risk Matrix 1. Annual Contract Value (ACV) - $41.56 Million 2. EBITDA - Pre-Bonus Target of 10.26 Million Bonus Funding Matrix *
Year Ending ACV Value 39.955 39.956 40.116 40.276 40.755 40.915 41.395 41.555 42.034 42.194 42.673 42.833 43.952 44.751 7.10 195 226 258 468 546 741 781 976 1,054 1,288 1,366 1,639 1,756 8.21 40.7 602 633 664 875 953 1,148 1,187 1,382 1,460 1,694 1,773 2,046 2,163 8.47 52.9 724 755 786 997 1,075 1,270 1,309 1,504 1,582 1,816 1,894 2,168 2,285 8.72 65.1 846 877 908 1,119 1,197 1,392 1,431 1,626 1,704 1,938 2,016 2,290 2,407 9.24 93.5 1,130 1,162 1,193 1,403 1,482 1,677 1,716 1,911 1,989 2,223 2,301 2,574 2,691 2013 Pre-Bonus EBITDA 9.75 10.13 10.26 11.03 122.0 152.5 162.6 211.4 1,415 1,720 1,821 2,309 1,446 1,751 1,853 2,341 1,477 1,782 1,884 2,372 1,688 1,993 2,095 2,583 1,766 2,071 2,173 2,661 1,961 2,266 2,368 2,856 2,000 2,305 2,407 2,895 2,195 2,500 2,602 3,090 2,273 2,578 2,680 3,168 2,508 2,813 2,914 3,402 2,586 2,891 2,992 3,480 2,859 3,164 3,265 3,753 2,976 3,281 3,383 3,870 11.29 227.7 2,472 2,503 2,534 2,745 2,823 3,018 3,057 3,253 3,331 3,565 3,643 3,916 4,033 14.11 345.6 3,651 3,682 3,714 3,924 4,002 4,197 4,237 4,432 4,510 4,744 4,822 5,095 5,212 15.39 398.5 4,180 4,211 4,242 4,453 4,531 4,726 4,765 4,960 5,038 5,272 5,350 5,624 5,741

Company Bonus Funding Total $3.8 Million Company Goals - $2.4 Individual Goals - $1.6

* Subject to extreme timing examples 4

Client Services Goals and Areas of Focus

2013 Client Service Goals

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

Goal Weighting
Labor Category Analyst * Senior Analyst Manager Senior Manager Director Vice President Executive Vice President Company Goal % 20% 40% 60% 70% 85% 100% 100% Individual Goal % 80% 60% 40% 30% 15% 0% 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. 6

2013 Client Service Goals

Maximize Delivery Efficiency
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, 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. 7

Increase Customer Satisfaction

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 ones expertise. Deliver accurate and presentable deliverables that are customer ready. 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 direct reports and comply with Performance Management timelines and processes.

Summary of Organizational Updates

May 2013 Organizational Structure

EVP of Client Services

Advisory Services VP

Professional Services
VP, Professional Services Olivia Peterson

Delivery Management

Business Analysis & Support

VP, BAS Danielle Brogan

Customer Support
VP, Customer Support Sandrine Moreau

Director, Advisory Services David Payne Senior Manager, Implementation Services Scott Kann

Director, Delivery Management Steven Shaffer Senior Manager, BAS Controllers Andy Lang Senior Manager, Credit Risk Services Pete Kovacs Senior Manager, Credit Risk Services Cheng Tu Manager, Customer Support Jamal Waris

Senior Manager, DM Professional Services Jocelyne Dao

Director / Mgt

Senior Manager, SIT PMO Rabea Nawaz

Manager, DM BAS Services Chris Ridgway

Senior Manager, BAS Controllers David Goldstein

Offshore Lead, Customer Support Khawaja Omair Ahmed

Senior Manager, SIT Accounting Travis Mueller Senior Manager, SIT/ Implementation Valuation Pete Kovacs Senior Manager, BAS Operations Deanna Dabney

Manager, DM Resources Jenny Angelova

Senior Manager, BAS Controllers Masha Muzyka

Manager, Credit Risk Services Greg Izydorzyk

Offshore Lead Valuation Sana Naushad Khan

Senior Manager, BAS Controllers Chuck Hall

Manager, Credit Risk Services Aaron Graham

* Note: green shaded cells represent Offshore employees.

Offshore Lead Accounting Ahmer Bin Naseem

Senior Manager, BAS Controllers Dale Hotz

Manager, Credit Risk Services Michael Lin

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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 Services, Professional Services, and BAS) to provide more consistency with our level of effort analysis and integrated resource capacity planning.

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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 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. 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 impacts to credit losses, NPVs, cash flows, provision, and forecasted accretion. To support your compliance with CCAR and Dodd Frank. To support your proposed bid based on the valuation of a purchased loan portfolio or bank acquisition including CDI. To compare actual versus expected for defaults, severity, and prepays and provide support analysis for go-forward model assumptions changes.

Scenario Analysis

Stress Testing Pre-Bid Due Diligence Back-Testing Analysis

5/23/2013

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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 customers 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 its capabilities. To provide a well controlled production process that meets the regulatory standards for critical third party vendors and fully supports a Banks 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.

5/23/2013

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BAS Organization
Accounting Operations
Execute end-to-end process with SOX controls Manage daily run book including status and issues Prepare weekly status reports including budget analysis

Controllers
Responsible for the oversight of the monthly close process including SOX controls 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 Planning and Analysis

Responsible for working with customer and developing a forecast of the financial results Prepare the financial results package and attributing any variance of actual to forecast

Credit Risk
Responsible for working with customer on generating the quarterly estimated cash flows Prepare and review valuation package with customer that supports the estimated cash flows Support any BackTesting Analysis

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BAS Delivery Model

Integrated BAS Team
Controller

Typical Bank Team

Controller

Accounting Operations Lead

Accounting Operations

FP&A Lead

FP&A

Credit Risk Lead

Credit Risk Management

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

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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 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.

5/23/2013

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Review of each Organizational Area

Customer Support

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The Role of Customer Support

Customer Support is here to track, manage, follow up and resolve incidents raised and 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

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.

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Customer Support Process and Protocols

Customer
Tier 2 Accounting & Valuation

Customer Support Tier 1 Internal Teams

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

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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 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.

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Future Organizational Structure

EVP of Client Services

Advisory Services VP

Professional Services
VP, Professional Services Olivia Peterson

Delivery Management

Business Analysis & Support

VP, BAS Danielle Brogan

Customer Support
VP, Customer Support Sandrine Moreau

Director, Advisory Services David Payne

Implementation Services

Director, Delivery Management Steven Shaffer

BAS Operations

Customer Support

Director / Mgt

Advisory Services

Data and Reporting Services

DM Professional / Advisory Services

BAS Controller

Education/ Training Services

Manager, DM BAS Services

BAS FP&A

Credit Risk Services Solutions Integration Production Change Management and Quality Control

Supported by a pooled / shared analyst resource model

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