Private & Confidential

THE HUMAN CAPITAL SCORE: MEASURING THE VALUE OF AN EDUCATION

People Capital, 111 East 14th Street, Suite 285 New York, NY 10003Thomas Shelton, CEO, tom.shelton1999@gmail.com (917) 693-1019

Investor Introduction

This document contains trade secret information. Please be aware that no part of this presentation may be reproduced in any form or by any means, electronic or mechanical, including photocopying and recording, for any purpose without the express written consent of Quest Growth Partners, LLC (doing business as People Capital). In addition, due to the proprietary nature of Quest Growth Partners’ methodologies and other information enclosed herein, this presentation may not be shown to any third party without the prior written consent of Quest Growth Partners, LLC.

PEOPLE CAPITAL

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Overview• The Human Capital Score™ is an income risk and projection engine

– Driven by achievements (e.g. SAT, GPA) and choices (e.g. school, major)– Generates 10+ year income projection of young adults– IP and academic research developed by Wharton/Harvard labor economists– Patents filed in Jun ’08 and Jun ’09– Primarily implemented as an API

• FICO® credit score is broken for students/young adults– Initially developed to create an alternative credit score for students

• Developed by People Capital, a student loan technology company– Serial entrepreneurs from finance, Internet and student loan industries– Primary goal has been origination, servicing– Raised $5 million equity throughout the recession

• Seeking investment to spin-out Human Capital Score into a separate venture or pivot People Capital– Disrupt higher education by measuring its true value– Target consumers and consumer-oriented companies: college planning, personal finance, media, etc – Use transparent, easy to use tools and metrics

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Founding Team & ConsultantsName BackgroundTom SheltonFounder & CEO

• Founder & CEO People Capital• Serial entrepreneur CyberStream Solutions, Strive Medical Technologies, Jeremy's Microbatch• VP Strategy & Operations, MyRichUncle (private student loan provider)• Co-inventor of the Human Capital Score™• Majored in Economics, with a concentration in Management, at The Wharton School• http://www.linkedin.com/pub/thomas-shelton/a/607/188

Alan SamuelsCo-Founder, Consultant

• CEO of Clearpath• Executive Vice President, Strategy & Operations at GrubHub.com Dotmenu, Inc• Co-Founder & EVP People Capital. Led development of HCS• Managing Director, Global Product Development, Fitch Ratings, VP, Standard & Poor's/McGraw-Hill• Former strategy consultant at Arthur Andersen and Gemini Consulting• MBA The Wharton School, BA University of Cambridge• http://www.linkedin.com/in/alansamuels

Prof. @ HarvardSenior Academic Consultant

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• Higher education economist and world leading academic• Currently leading HCS R&D. Improving and expanding the HCS to address a wider range of higher education

issues

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Prof. @ WhartonCo-Inventor HCS

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• World leading academic in the field of labor, insurance and risk management• Co-inventor of the HCS

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Founding Team & ConsultantsName BackgroundLaura VincentHCS Research Analyst, Consultant

• Research Coordinator, The Paul Milstein Center for Real Estate, Columbia Business School• Data Analyst and researcher at People Capital, focused on Human Capital Score™• Researcher, National Institute on Retirement Security• BA in Economics and with honors from Amherst College in Massachusetts.• www.linkedin.com/in/vincentlaura

Jim WiegandEngineer, Consultant

• Currently Technology Director, Pro Bono Net• VP Engineering, People Capital/HCS• 15 years of experience implementing internal and external applications, including high-transaction systems

and web-based financial systems. Previous positions at Coach, CIT Group, Merck.• http://www.linkedin.com/pub/jim-wiegand/4/44a/594

Jacques TohmeCorporate finance, Consultant

• Experienced in corporate finance, investment banking and advisory services• VP, Corporate Finance and Development People Capital• MBA from NYU, Engineering from Columbia • http://ro.linkedin.com/in/jacquestohme

Josh Mailman, Serious Change, LPInvestor in People Capital

• Founded Serious Change, LP, the Social Venture Network and the Threshold Foundation. Currently a lead investor in the following organizations : Indigenous Designs, Alter Eco, Lotus Foods, Emerge Financial, Social Imprints, Ice Stone, General Compression, Red Rabbit, Blue Ridge Produce, PharmaSecure, Leapfrog Ventures, frogtec, Clinica de Azucar, Equilibrium Capital, RSF Mezzanine Fund, Return Textile, Icon Wheelchair, Everyone Counts, Napo Pharmaceutical and Baltix Designs.

• www.linkedin.com/pub/josh-mailman/23/168/9a5

Warren Serenbetz Jr., Radcliff Group, Inc.Investor in People Capital

• President & CEO of Radcliff Group a private equity fund• MBA from Wharton • www.linkedin.com/pub/warren-serenbetz/8/201/120

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Higher Education Market

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*includes: non-education loans, credit cards, home equity financings, family or self-financed

Sources: National Center of Education Statistics and College Board, Trends in Student Aid Trends in College Pricing, FinAid

Personal*

Private Loans

Federal Loans

Grants

Education Tax Benefits

The $260+ billion/yr Student Funding Market by Source Inflation-Adjusted Tuition & Fees 1982-2012

Sources: College Board, Trends in College Pricing, 2011

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A Huge and Important Problem• Higher Education costs $260+ Billion/year.• The Federal Government and the Gates Foundation

are now focused on the economic value of an education. Creating demand for HCS products.

• Tuition costs have increased at twice the rate of inflation– Federal loan limits have not kept pace with tuition costs– Traditional funding alternatives are now limited, i.e.

private student loans, credit cards, home equity, investments, etc.

• Need for transparency and accountability to value services provided by colleges and universities– Students should understand the financial ramifications

of a particular educational path– Allowing lenders to use the students “Debt to Projected

Income ratio”.– Helps bring additional pressure to colleges to slow the

growth of education costs

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Less than H.S.

High school Some college

Associate Bachelor's Master's Doctorate Professional

Average annual income Unemployment

Higher Education, Income and Unemployment

�Note: Unemployment data as of January 2010; income data from median full-time, year-round worker over age 25Sources: U.S Census Bureau – Current Population Survey, 2008 Annual Social and �Economic Supplement

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The Human Capital Score™• Initial focus was to fix FICO® which is broken for students/young adults

– Students generally receive low scores that do not reflect true credit risk• The Human Capital Score™

– Proprietary risk measure developed by People Capital– Built by leading labor economist and a team of researchers– Based upon achievements (e.g. SAT, GPA) and choices (e.g. school, major)– http://www.slideshare.net/tomshelton/hcs-summary-validation-faqs

• Built core technology for use as API and web services – Generates 10-year income projections of young adults. Mean and range

of earnings post graduation, trajectory of growth, ability to pay– Can provide robust output based on 2-5 variables

• HCS impact and progress – Helped raise equity capital and driver of loan operations business– Key factor in deal with ATM/Cardtronics for their credit union clients– Beta tested by credit risk depts. at Discover, Citibank, etc.– Closed deal with leading personal finance site (but not launched)– Strong interest and due diligence by top 5 news company for partnership– Used by the National Institute of Certified College Planners (NICCP)

• Consumer-focused calculator launched– Scenario Analysis/College Planning Tool launched– R&D: law school, business school, grad, associate degrees, etc.

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Why is this important?

• Unique source of post-graduation income potential• Leads to an informed conversation …

– What is the student’s potential income post graduation?– How much should he/she be comfortable borrowing?– What is his/her ability to pay back over time?– What is the impact on the choice of college or major?

• Can change behavior of all players in higher education industry

“HumanCapitalScore.com's projections can also help a student figure out how much money to borrow for college. Many experts say total student loans shouldn't exceed a grad's first-year income after graduation.”

http://online.wsj.com/article/SB10001424052748703438404574597952027438622.htmlhttp://www.slideshare.net/tomshelton/assessing-the-value-of-a-college-degree-wsj

WORK & FAMILY

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Experiences and Lessons Learnt• People Capital lending business was top priority

– Could not take advantage of HCS opportunities nor build proper consumer solutions– Focused on the credit risk departments rather than consumer marketing companies.

• Primary goal was to tie HCS to credit risk and institutional lenders– Toughest and longest sales cycles– Still valuable to attach credit risk defaults to HCS, but that is complicated and extended

business model• Opportunity to provide unique college planning tools to the consumer market

– Built a college analysis tool but UX/UI was poor, no investment in lead gen– Initial successes will be with personal finance sites, leading news sites, college and

career planning.– A slimmer and more agile organization focused on HCS– Unique tools driving revenue share partnerships – Freemium

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Partners & Competition

College Planning

HR & DataPersonal Finance

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HCS

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Product Roadmap

Build a Consumer offering• Develop consumer-focused

offering• Improved UX/UI• Build Recommendations

Engine, providing more dynamic college planning experience.

• Social networking apps• Create Widgets to be deployed

into partner sites for revenue share. • Improve API to drive

partnership integrations• Update model with current data

Partnership Opportunities•Close deals with third-parties to provide our products to their end-users•Institutional clients and lenders license HCS (like a credit bureau pull)•Acquire additional data sets

•License third-party•Crowdsource

Medium Term Opportunities•Expand product to include non-traditional education & training, i.e. Khan Academy, Udacity, community college, etc.•Build referral network•Create and sell data services•Enhance the credit risk algorithm for the lender market.

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Additional Info - Current HCS

• Sample report:– http://www.slideshare.net/tomshelton/hcs-college-planningtool

• HCS Validation & FAQs:– http://www.slideshare.net/tomshelton/hcs-summary-validation-faqs

• API:– http://www.slideshare.net/tomshelton/human-capital-score-api-for-lenders-v202

• Videos:– HCS Simple Results Demo

• http://www.slideshare.net/tomshelton/people-capitalp2phcsdemoflashvid

– HCS Long Demo• http://www.slideshare.net/tomshelton/people-capitalhcs-demo4min

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For more information

• Thomas Shelton– Founder & CEO, People Capital– tom.shelton1999@gmail.com– (917) 693-1019