1. Payroll Distribution Services In Partnership with K1 This document contains unpublished, confidential and proprietary information of First Data Corporation. You may not disclose, copy or use any part of these materials for any purpose without the express written consent of First Data Corporation.Larry Lokey First Data

2. Agenda

Business Drivers

The Payroll Distribution Services Pay Card and Money Network Check

The Advantages of First Data's Payroll Distribution Services

Working with First Data

Prepaid Key Successes

3.

Business Drivers

4. First Datas Prepaid Market Suite

Reduces payroll expenses

Allows you to achieve 100% electronic pay

Improves payroll security and control

DirectedGift Giving Consumer Need Open Loop Gift Cards Closed Loop Gift Cards Multi-Purse Gift Cards Employer PayCards & Check General Purpose Reloadable Cards Flexible Gift Giving Spending & Convenience Rewards Payroll Direct Deposit Bank Account Alternatives Spending Cards Loyalty Cards 5. Large Underbanked Market Looking for Alternatives

CFSI Underbanked Consumer Study 2008

** Mercator Advisory Group, Inc. 2008

51.5M 24% 54.9M 25% Underbanked Percentage of U.S. Adult Population* (Numbers in Billions) The use of Payroll Cards is expanding as companies look to migrate topaperless pay in order to save costs associated with issuing paper checks 6.

Payroll Distribution Services

7. Common Employer Issues I am looking for a payroll solution that enables compliance with complicated payroll laws Issuing paper checks and the administration that goes along with it is extremely costly to my company Direct depositing pay saves me money, but a large number of my employees dont use it or dont have bank accounts Many of my employees speak Spanish, so any service would need to be available in English and Spanish I have a high-turnover, unbanked employee base I need a payroll solution that saves me money and is easy to implement 8. What is the First Data Payroll Distribution Solution?

Employee choice:

Voluntary direct deposit to the financial institution of employees choice

-or-

The Money Network Service

Voluntary Money Network Card*

The Money Network Check: A paper check for full access to net pay without fees

• Employee generated as desired

• Enables compliance with state payroll check requirements

• Provides pay to the penny (100% access) to net pay at no fee

• The Money Network check can be cashed for free in all 50 states

*Use of the card by the employee is optional Allows you to achieve 100% electronic pay thus reducing thecosts associated with issuing paper checks 9. Achieving 100% ElectronicPayments Providing What Everybody Wants / Needs *The Money Network Check is a negotiable instrument in all 50 states.Employer 100% Electronic Payment Employees with Bank Accounts Voluntarily elect direct deposit to personal bank Employees without Bank Accounts Voluntarily elect pay card or Money Network Checks* 10. Product Overview- Associate Benefits

Free ATM Access Over 35,000 surcharge free ATM locations: Allpoint Network

Instant Issue or personalized cards STAR PIN Only, Visa, Discover or MasterCard

Money Network Checkcan be used for bill payment, cash-out to the penny, termination pay and for access to cash if the card is lost

Multiple Source Funding offers Associates flexibility with Western Union re-load or second job ACH

Balance Alerts Daily or weekly balance sent via text or email

Benefits for family- secondary card(s) option available

11. The First Data Payroll Distribution Solution Business Issue First Data Solution Reducing Payroll Expenses With First Datas Payroll Distribution service you canreduce your overall payroll expenses Compliance The Money Network Service enables you tomeet compliance requirements in all 50 states Achieve 100% Electronic Pay With First Datas Payroll Distribution services, you can achieve100% electronic pay across your organizationeven for exception pay, termination pay and employees without bank accounts Funding Standard ACH funding, web funding and same day funding via batch loader Instant Payment Corporate account with online web fundingBilingual Education of EmployeesMarketing materials and customer support provided inEnglish and Spanish 12. Lower Your Payroll CostsTake advantage of First Datas prepaid and payment expertise to lower your costs and add an employee benefit with a high perceived value Issue: Check Printing CheckDistribution

Check Administration

• Reconciliation

• Lost / Stop Pay

• Escheatment

OffCycle / Term Pay Check Fraud Industry Estimate First Data Cost $0.69 $0.61 $0.21 $0.10 $0.03 $0.0 $0.0 First Data Cost. $0.0 .. $0.0 $0.0 13. Payroll Distribution Services Helps Your Business Achieve 100% electronic pay across your organization Guarantee first pay with the instant issue product, including both the Money Network Check and Money Network Card. Reduce payroll production and distributioncosts Ensures prompt distribution of pay on payday even in disaster situations. Improve payroll security and control Helps Your Employees Access their wages immediately on payday by either Money Network check or card . No-fee check cashing nationwide To pay for goods and services conveniently and safely in person or online Cash back at millions of participating retail locations cash withdrawals at the largest surcharge free ATM network in the U.S. Guaranteed access to wages immediately on payday even if scheduled off, out on illness, vacation or in disaster situations 24/7 bilingual customer support (English/Spanish) 14.

Working with First Data

15. Employee Awareness and EducationFirst Data supports every aspect of the process

Statement stuffers to announce the move to new pay options

Posters, table tents, take-ones available for work locations to communicate the benefits of the new pay program

Cardholder bi-lingual marketing packets for enrollment and training, include:

• Card carrier with fee schedule that includes an enrollment form to use, if needed

• Easy to follow instructions for activating and setting up personal PIN numbers

• Cardholder terms and conditions

• Introduction to and instructions for using the card & check

How To Guides English & Spanish Table Tents 16. Implementation and Training

Implementation

• Approximately 4 Weeks (Fastrack can be implemented much more quickly)

• Includes training, product inventory management, enrollment, funding and final production testing

Training

• • • All training will be facilitated by First Data (field manager training, including product training, program administration, compliance, reporting)

• • • Training needs will be mapped out during the early stage of implementation

• Ongoing Client Support

• Relationship Management Team will be assigned

• Continued communication on product enhancements

• Access to Client Service Teams

• Customer Support

• 24/7 Toll-Free Operator Support (Spanish and English)

17.

Key Successes

18. Client Success with Payroll Services

First Data provides payroll cards to over 1,000 companies

Retail:

• Best Buy 100% first pay, opt-out

• Michaels Stores 100% requirement

• Zales 100% requirement

• Dillards 90+% electronic

• Abercrombie & Fitch beginning 100% roll

• American Eagle 100% for term, elective roll

• Gander Mountain 100% electronic

Food Service

• Texas Roadhouse 90+% electronic

• OSI, Inc. Carrabas 100%, Outback rolling opt-out

• Teds Montana Grill 100% electronic payroll and pay advice

• Caspers Inc. (largest McDonalds franchise) 100% electronic

Other

• RGIS 100% electronic

• McClane 90+% electronic

19. Success Story with First Data Providing Safe, Reliable, Paperless Payroll Solution

The Holland Group

Challenge

Distributes 6,000 checks to 50 location in seven states

One full time staff member kept busy problem solving (Fraud, Lost Checks, etc)

Fraud lead some retail location to become reluctant to cash company checks

Solution

The company starting searching for a paperless solution that would save money and reduce fraud

Results

First Datas Payroll solution was selected because it met their objectives and our outstanding level off customer service

100% electronic pay was achieved

We could not be more pleased with how well this product is working for us.This is a sensitive area getting people paid and First Data has been a terrific strategic partner for us.-Peggy Orrell, Director of Human Resources Outsourcing, The Holland Group 20.