This document summarizes an upcoming panel discussion on operational landmines and accounting changes in today's commercial finance environment. The panel will consist of four speakers who will each briefly discuss two topics: regulatory issues, credit, human resources, asset management, IT, legacy mindsets, pricing, and accounting rule changes. Attendees will then break out into groups, each moderated by a panelist, to discuss one of the topics in more depth. Finally, each group will report back their discussion to the full audience before concluding remarks.

1. Operational Landmines: What’s Hot in Today’s
Operating Environment & the Accounting Changes
September 9, 2013
4:00 – 5:15 pm
Jeff Darlington, SVP & CFO AIG Commercial Asset Finance
Shawn Halladay, Managing Director, The Alta Group
Deborah Reuben, Product Manager,
LinedataCapitalStream
Scott Thacker, CEO Ivory Consulting

2. Introductions
• Panelists
– Jeff Darlington
– Shawn Halladay
– Deborah Reuben
– Scott Thacker
• Today’s Format
– Overview of Operational Landmines by the panelists
– Audience breakout into four groups; each group moderated by one of
panelists
– Select one of the two Operational Landmines moderated by the panelist
– Brainstorm and discuss what it means to your organizations
– Four group presentations

3. Schedule
Start End
Introduction of Panelists 4:00 4:05
Overview of Session Format 4:05 4:10
Eight Operational Landmines & Accounting Changes
(2+ min each)
4:10 4:30
Breakout Groups (choose one of two moderated topics) 4:30 4:55
Four Group Presentations
(5 min each)
4:55 5:15

4. Operational Landmines
• We selected eight categories
1. Regulatory
2. Credit
3. HR
4. Asset Management
5. IT
6. Legacy Mindset
7. Pricing
8. Accounting Rule Changes

5. Regulatory
• State Taxation
– Nexus issues
– Defunct cities and states looking for revenue
– New fees, taxes and assessments
• Many new and ever-more complex regulations
– Difficult to understand all of them and how they inter-
relate
– Compliance awareness
– Staffing
Jeff is moderator

6. Credit
• Securing your position
– Know your customer rules
– Lien perfection
Jeff is moderator

7. Human Resources
• Succession Planning
– Retention
– Cross-training
– Retention & Recovery
– EEOC re: layoff’s
– Economy is bouncing around: hire/layoff cycle
Shawn is moderator

8. Asset Management
• Residual/End of Term
– Setting residual in rapidly moving technology market
– Recovering the assets
• Asset movement by lessee
– Risk of loss
– Different tax issues in different jurisdictions
Shawn is moderator

9. IT
• Excel Worksheets
– Work-arounds
– SOX compliance
• Report Overload
– What is really needed
– Paper vs. electronic
• Inventory Tracking
– Know what you have
– Re-lease or sale at End of Term
Deb is moderator

10. Legacy Mindset
• Very quickly moving economy, technology, business
practices, and customer expectations
– Unwillingness to change
– Inertia
– Solving wrong problem entirely
• Innovation barriers
– Lack of funding even with positive business case
– Unable to measure benefits
• Growth
– Top line vs. cost cutting
Deb is moderator

11. Pricing
• Legacy mindset
– Pricing to spread over COF rather than risk based pricing
• Application of elasticity concepts
– What will the lessee market bear
• Excel spreadsheets are error prone
– Formula changes
– Putting in wrong numbers
• Education around more complex pricing concepts
Scott is moderator

12. Accounting
• Many hidden costs
– IT Modifications
– Professional Fees
– Temporary Help
– Technical Accounting Education
– Processes & Controls
– Reporting
– Staff Training
– Financial Products
Scott is moderator

13. Breakouts
• Audience divides into four groups
• One panelist per group
• Select one of the two topics moderated by that
panelist
• Each group reports to the full audience

14. Conclusion
• Final comments and feedback