Agent Banking Through Kontrol An introduction to Kontrol’s Answer for banks that desire to offer Accounts Payable Sol

1. Agent Banking Through KontrolAn introduction to Kontrol’s Answer for banks that desire to offer Accounts Payable Solutions to their clients

4. Agent Banking Overview What is agent banking? In the context of the card business, Agent Banks typically license the credit card programs and technology of other banks (Sponsor Banks). Why agent banking? This structure enables the Agent Bank to offer the technology and product of the Sponsor Bank to its customers without a lengthy implementation process and without large up-front fees. Who are typical Agent Banks? Typical Agent Banks are regional banks with strong, local treasury relationships and a need for a commercial card solution, but larger national banks and non-traditional banks are also eligible for the program. A typical Kontrol agent banking candidate has fielded questions from its larger clients around card-based AP solutions or may have seen competition encroach on its treasury relationships because of a lack of a viable AP product. How does agent banking work? Agent Banks contract with Kontrol and one of Kontrol’s Sponsor Bank partners to license Kontrol’s best-in-class card-based AP solution. Volume from the Agent Bank flows through Sponsor Bank’s BIN via the Sponsor Bank’s contract with the core processor.

5. Sample Agent Bank Pro Forma Year 1 will yield $350K in incremental revenue to Agent Bank assuming $100M in AP spend volume. Based on growth of overall portfolio, Year 3 revenue could exceed $1M. • Assumptions: • Year 1 Volume = $100M • Year 2 Volume = $250M • Year 3 Volume = $500M • Assumes 35 bps as revenue for Agent Bank.

6. Partnership Structure Agent Bank (account ownership, funding) (program management & servicing) Kontrol Partner Bank (Sponsor Bank) (BIN sponsorship) Technology Provider Card Processor (core processing) (card management technology & managed services) (card scheme)

7. Kontrol’s Agent Banking Value Proposition • Start up costs are low. • Time to market is short. • Growth opportunity is large.

9. Kontrol’s Automated AP Program Kontrol provides a turnkey AP Automation product that: Outperforms the market Offers easy integration Leverages best-in-class technology

10. Other Top 10 2012 Issuers Kontrol’s Technology Outperforms the Market The market share of issuers using the same technology solution as Kontrol grew from 5% in 2006 to 12% in 2012. Market Share = 12% 3 Year CAGR = 35% Combined Fleet, Corporate, and P-Card Volume $209B $187B 2012 Kontrol Technology Issuers Market Share = 79% 3 Year CAGR = 16% $162B $132B $129B $127B $109B Market Share = 9% 3 Year CAGR = 21% All other 2012 Issuers Source: Nilson 2007-2013; SilverStream Advisors

11. Kontrol’s Technology is Easy to Integrate • Kontrolmanages the short-term implementation of the program and the long-term growth of the portfolio. • The Short-term implementation process includes: • Managing the integration with core processor, Sponsor Bank, and technology provider. Any necessary development work and testing should fall within a 3 month window. • Developing and troubleshooting the settlement & funds flow processes. Depending on the structure and financial situation of the Agent Bank, a customized settlement process may need to be developed. Kontrol has experience in driving these processes. • Providing advice and expertise around underwriting policies, pricing grids, and portfolio pro formas. • The long-term engagement includes: • Identification and assistance in engaging strategic sales verticals. • Ongoing competitive intelligence focused on AP Automation and the purchasing card market.

12. Kontrol’s Technology is Best in Class ERP Integration – No change to existing accounts payable processes. A file can be produced using the alternative payment functionality of client’s existing ERP systems, so they can process card payments in the same way that they are processing check or ACH files today. Push Payment – Suppliers can receive the straight through processing of an electronic Visa or MC payment without any manual intervention to receive the payment or the data. This means auto reconciliation for your clients and a large spend program, which yields great revenue. Pull Payment – 95% of card-based AP spend runs through this method. The supplier receives notification of payment from the client and processes their payment through an existing payment terminal. SUGA (Single Use Ghost Account) – This special card type allows for suppliers to accept payments, but they are not set-up with a recurring 16 digit number. Many vendors are reluctant to accept payment technology as they have system restraints that will not allow them to store a card number on file – resulting in lower vendor acceptance. SUGA allows a supplier to receive notification of payment from a client and then prompts them to log into a vendor portal to receive a single use card number to satisfy payment. Once settled, the card number is purged from the system, never to be used again. Single File Solution – A single file can be produced for a client’s entire payment file. Payments can then be made via Card, ACH, and check.

13. Kontrol’s Automated AP Program Key Features of the Product • Streamlined Implementation: Kontrol’s AP Solutions platform is easily integrated and does not require changes to existing accounts payable processes. • Multiple Payment Methods: Buyers and suppliers can choose to process payments using pull pay, or our unique push pay option for completely automated payment process. • Pull payments are processed via “single use ghost accounts” (SUGA) (also known as virtual cards) for added security and convenience. • Turnkey Servicing: A core feature of Kontrol’s AP solution is the ability to offer buyers a full service supplier enablement process complete with supplier portals, multiple AP payment methodologies, and enhanced remittance advice. • Mobile Capabilities: Platform also accommodates mobile payments and leverages mobile interfaces.

14. Portfolio Portability Sales and Marketing Support Managed Services

15. Portfolio Portability Kontrol’s agent banking customers own the receivables associated with their portfolio. Unlike other agent banking programs, the Agent Bank will have full portability if it decides to change strategies, providers, or move to a direct relationship with Kontrol’s technology provider. This ensures that Kontrol’s agent banking customers maintain the treasury relationship with their clients despite the use of the Sponsor Bank’s technology.

16. Sales and Marketing Support The Agent Bank can choose to fully outsource the sales function to the professional sales force working with Kontrol and its partners. Kontrol and its partners use an executive level sales force with decades of combined experience selling Kontrol’s technology solutions. Kontrolwill coordinate trainings for the Agent Bank’s sales force in order to ensure that they are fully equipped to make the program a success. Kontrol will provide collateral and other marketing materials for customization and use in the Agent Bank’s sales process.

17. Managed Services • Client Implementation Support – Kontrol and its partners provide a dedicated team that oversees the client implementation and training processes for the Agent Bank’s customers. • Vendor Enrollment Support – Kontrol and its partners manage the initial and ongoing vendor enrollment processes in order to maximize portfolio volume. • A dedicated Relationship Manager will manage not only the initial vendor enrollment, but will facilitate ongoing vendor enrollment throughout the life of the program. • If one of a client’s vendor enrolls with a client of another bank using the same technology, the vendor enrollment team will reach out to the vendor on the client’s behalf and enroll them. • Weekly/bi-weekly calls will be held during enrollment to update the client on how vendor calls are going, who has enrolled, who has declined and the reasons why. • Customer Servicing – Kontrol and its partners offer Level I, II, and III customer support out of a call center dedicated to this product and customized for the Agent Bank.

19. Next Steps Contact Kontrol: If you are interested in Kontrol’s agent banking program, please contact us (next page). Demo: Kontrol is happy to schedule a demo with your team at your earliest convenience. Diligence and Contract Discussions: Kontrol welcomes further diligence and follow-up conversations as needed to ensure that Kontrol’s agent banking program is the right fit for your financial institution. Roll-Out: Kontrol and its partners anticipate roll-out of this offering within 60 to 90 days of the final contract signing and related agreement on terms.

20. Kontrol Contact Information Scott Songer: CEO Email: ssonger@kontrolpayables.com Phone: 301-801--3450 Chad Clay: SVP, Client Management Email: cclay@kontrolpayables.com Phone: 703-801-8356 Sean Songer: COO Email: sesonger@kontrolpayables.com Phone 410-353-7366 Thomas Parrish: SVP, Business Development Email: tparrish@kontrolpayables.com Phone: 509-951-2128