CONFIDENTIAL Sempris Marketing and Customer Care Policies & Procedures Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL 2 Sempris history Sempris company highlights Member enrollment notifications Premium redemption processes Member benefit utilization Customer service policies & procedures Summary Table of Contents Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Sempris History 3 Originally founded in 1986 as Damark International, Inc., one of the leading direct-to-consumer catalog companies in the United States with annual sales exceeding $500 million In 1987, Damark launched the countrys first custom- designed discount shopping program, the Preferred Buyers Club, which was sold to its own catalog consumers In the mid 1990s, in order to increase membership program penetration within the catalog file, the company developed a heuristics-based membership up-sell engine. Based on a set of rules that included both historical transactional information and real-time consumer preferences, our proprietary up-sell model would select the most appropriate membership program, presentation script and promotional incentive to offer each consumer The company expanded its marketing focus in 1995 to include the design and marketing of custom programs to an array of corporate clients In 2000, Provell separated from Damark and focused solely on its membership business model In 2011, Provell was rebranded as Sempris. Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Sempris Company Highlights 4 Based in Minneapolis, Minnesota with over 25 years expertise in the direct selling industry 24 years creating fee-based customer programs for clients Company based on service and excellence across its business system Have enrolled millions of satisfied members Focused on creating enduring and transformational value for our clients One-to-one relationships with over 200 partners bringing a wide variety of compelling consumer value Proven Programs and Custom Solutions available, all with dedicated Web sites also available for consumers Corporate Web site located at Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Member Enrollment Notifications 5 Sempris sends a physical fulfillment kit to every member who agrees to purchase a Sempris membership The letter clearly defines the billing details, including the credit card descriptor, and provides 800# access to the member Sempris uses a delivery confirmation process based on the USPS Track and Confirm system to ensure delivery of physical fulfillment materials to the member. Physical Fulfillment Kit SAMPLE Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Premium Redemption Processes 6 Premium forms are available in online documents via PDFs Members may request physical delivery of forms as well via toll free customer service line Unlike most of our competitors, all of Sempris sign-up premiums are redeemable by members regardless of whether or not they are active members Sempris processes all premium requests weekly and the average fulfillment time is less than four weeks vs. a service promise of 8-10 weeks. General Premium Procedures Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Premium Redemption Processes 7 All cash back order discounts are redeemable by a member via a simple one-step process The consumer prints out the cash back request form and attaches the appropriate order receipt documentation for the initial or subsequent order Once received, Sempris processes the request and fulfills the cash back offer to the member via a check All paid checks are available for viewing in PDF format to aid customer service. Cash Back Order Discount Redemption Process Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Premium Redemption Processes 8 Gift card premiums follow a two- step redemption process to ensure the current inventory selection is available for members The member prints and fills out a request form (step 1) and mails it to Sempris The member is then sent a gift card selection form (step 2) Once the gift card selection form is received, Sempris fulfills the gift card(s) to the member $80 and $100 gift card premiums are redeemed in quarterly increments. Gift Card Redemption Process Step 1 Step 2 Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Member Benefit Utilization 9 A member can interact with the membership Web site through a number of different involvement tools, including: Personalization of home page Weekly polls Coupon submissions Trivia contests Sempris enhances partnership utilization by following three core principles to ensure a member can save 2X the monthly membership fee: Average spend/offer Keep as low as possible Overall discount value Less money out of pocket in order to save the most amount of money Average savings/offer Maximize the discount on each offer Member Interaction and Utilization Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Member Benefit Utilization %* interact with the member site via clicking through partner offer links contained within the Web site 7.3%* use physical or retail based discount codes that are provided to members either in their fulfillment materials or printed directly from the member Web site 3.0% to 5.0%** of members redeem their sign-up premiums depending on the value and type of sign-up premium used An undefined but significant portion of member utilization is unable to be tracked due to the inability or refusal of our partners to report on member usage. As a proxy for unreported redemption, Sempris renews 95%+ of our partnership agreements every year which suggests a strong redemption flow from our members. Member Utilization Statistics (% of Gross Members) *As a percentage of members beyond the trial period ** As a percentage of all members Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Customer Service Policies & Procedures 11 Sempris is the only membership services company accredited by the Better Business Bureau, and with an A rating. Sempris Customer Service Levels Example of Sempris phone stats* w/e : ASA 03 seconds w/ 1.14% abandon rate w/e : ASA 07 seconds w/ 1.23% abandon rate w/e : ASA 04 seconds w/ 1.06% abandon rate w/e : ASA 02 seconds w/ 0.66% abandon rate w/e : ASA 03 seconds w/ 0.69% abandon rate Sempris employs industry-leading operational and customer service procedures to deliver an unmatched customer service experience. Sempris takes the following measures to ensure our high level consumer satisfaction: Calls are handled by live agents IVR systems are never used The call center agents use a no save policy First call resolution is 92%+ All calls are recorded for monitoring and training proposes and accessible via desk top computers of senior executives in real time is our main customer service phone number *As measured from the time the consumer finishes hearing Sempris' welcome recording Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Customer Service Policies & Procedures 12 A member who cancels his/her membership service during the trial period will automatically be refunded the trial fee A member who cancels after either one or two billed installments will also receive a refund of all monies collected by Sempris A member who cancels after being billed 3+ installments is able to receive a refund of all monies collected by Sempris by requesting and submitting a Refund Request Form from our call center A member can cancel and request a refund via the Web by visitingMembership Refund Procedures Customer Service Policies result in less than two regulatory inquiries for every 10,000 members* Sempris employs industry-leading operational and customer service policies and procedures. The outcome of this is an exceptionally high level of consumer satisfaction as indicated in the percentage of inquiries received. *Source: Sempris Regulatory Compliance Database Sempris, LLC All Rights Reserved. No portion of Sempris concept and designs may be reproduced in whole or in part without written authorization of Sempris, LLC. CONFIDENTIAL Summary 13 Prominently disclosed terms and conditions of membership and offer details that are not contained within an overly cluttered enrollment form Requirement of consumer to give his/her full credit card number at the time of sale A confirmation process that delivers all pertinent membership billing details via a physical fulfillment kit that uses the USPS Track and Confirm program to monitor deliverability Outstanding customer service procedures and metrics which ensure the highest level of consumer satisfaction in the membership services industry Refund procedures that allow any consumer to receive 100% of all amounts charged with a minimum of inconvenience.