- Summit Financial Resources is a commercial finance company that partners with banks to provide working capital financing to small businesses when the bank cannot. - They typically provide credit facilities between $100,000 and $3.5 million to companies with annual sales between $1-30 million in a variety of industries. - Companies need their financing when they are not qualified for bank financing due to risk factors like a weak balance sheet, lack of operating history, or poor financial reporting.

1. September 14, 2009 Working Capital Financing

2. Basic Information Who is Summit Financial Resources? We are a specialty commercial finance company that works as a partner with banks assisting its relationship managers in gaining or retaining depository relationships, and developing new lending relationships. What does Summit do? We finance a company’s accounts receivable and inventory to improve its working capital when the bank cannot. When the company’s financial picture improves, the lending relationship is returned to the bank. We do not provide real estate or machinery and equipment financing. What size companies does Summit finance? We finance companies with annual sales between $1mm and $30mm.

3. Basic Information What size credit facilities does Summit provide? We typically provide credit facilities between $100,000 and $3,500,000. What type businesses does Summit finance? We finance companies in a wide variety of industries that generate commercial accounts receivable through sale of a product or service to other businesses. We do not finance construction contractors, medical service providers, or businesses that sell directly to consumers. Why do companies need our financing? They are not qualified currently for bank financing because they have a risk profile that does not meet the bank’s standards. They need an alternative source of working capital financing until they do qualify for bank financing.

4. Recognizing a Referral Opportunity You are looking at a potential new client that you are certain will not meet the bank’s lending standards, but the business has or could develop into a profitable depository or other fee income relationship. You are reviewing the bank’s relationship with an existing client and see the need for an increase in the amount of the client’s credit facility that the bank may not be willing to meet. But, you don’t want to lose the depository relationship. You are reviewing the bank’s relationship with an existing client and realize the client’s financial picture is deteriorating and risk is increasing. The client’s credit line may not be renewed which risks losing the depository relationship.

5. New Client Referral Profile Company has commercial accounts receivable. Company has a short operating history below bank’s minimum requirement. Company has a weak balance sheet with minimal or negative equity. Company is growing at a rate that would cause concern for the bank. Company’s customer base is concentrated in a few accounts. Company owner’s personal credit record has some problems. Company’s financial reporting is weak and won’t meet bank requirement. Company has one or several of the issues listed on the next page.

6. Existing Client Referral Profile Company has commercial accounts receivable. Developing negative trends in sales and profitability. Lack of adequate capital to support sales growth. A/R collection trend is slowing as customers pay later. Bad debt accounts are showing up, but not being written off. A/P are aging out and increasing. Pressure from trade creditors is increasing and client is on “cash only” terms. Inventory levels are increasing, but sales are not. Client is beginning to carry book overdrafts. Client is beginning to request that the bank cover issued checks or payroll. Company management is late in financial reporting. Company bank balances are trending downward. Company management believes increasing sales will solve cash shortage problem.

7. Working Capital Products Add-on only to Core Product Borrowing Base Certificate Revolving Loan; Ledgered Collateral Receivables Purchase Notes Collateral Mgmt Fee + Interest Interest + Various Fees Interest + Mgmt Fee Collateral Mgmt Fee + Interest Pricing Components Higher with Underwritten Exit Lower, Strong Reporting & Management Medium, Good Reporting & Management Higher, with Underwritten Collateral Controls Risk Profile Up to 50% of Eligible Up to 85% of Eligible Up to 85% of Eligible Up to 90% of Eligible Advance Rates <$500M $1MM-$3.5MM $250M-$3.5MM $100M-$3.5MM Facility Limits Inventory ABL ABL Flex Factoring

8. Referral Process Banker contacts local Summit Business Development Officer (BDO) to discuss referral. Banker identifies a qualified referral. Banker provides introduction of client to Summit. Summit BDO contacts referred client to discuss business and financing needs. Summit BDO communicates results of call to Banker: 1. Not qualified, 2. Meeting with client, or 3. No Interest from client. If client to move forward with Summit, BDO to update Banker on progress of underwriting up to funding. Summit funds client, and Bank retains depository relationship.

9. Contact Information Liz Castillo Vice President Southwest Region 1200 Smith Street, Suite 1600 Houston, TX 77002 713.353.3911 Phone 713.385.1789 Cell [email_address]