May 2009 Strictly Confidential National League of Cities Service Line Warranty Program

Who is USP? Headquartered in Canonsburg, PA, One of the leading independent providers of service line warranties in North America. USP is backed by a parent company with very strong financial capabilities as well as reputation throughout the utility and infrastructure industry. Through Macquarie Capital’s ownership, USP has the commitment, capability, and the financing to grow and foster partnerships with cities throughout the United States. A National League of Cities Enterprise Programs Partner since November, 2010 USP’s management team has a deep rooted understanding of brand management, customer service, and relationship management having developed the utility service line warranty program for a major energy company in the mid- 1990s 2

NLC Service Line Warranty Program Products External water line and sewer line warranties Provide repairs on broken or leaking outside water or sewer lines typically not covered by homeowners insurance No restrictions on the number of repairs performed– full benefit of coverage provided on every repair Low monthly cost – NO deductibles or service fees 3

Product Illustration What is covered under the NLC Service Line Warranty Program? The NLC Service Line Warranty Program covers the portion of the outside water and waste lines that are the responsibility of the homeowner. While the homeowner is responsible for their in home water and waste lines, they are also responsible for the portion of the line that is buried outside of the home to the point of the utility connection. Generally, for outside water lines, the homeowner's responsibility ends at the meter vault, curb stop, or main tap, depending upon local jurisdiction and ordinance. In the case of wastewater lines, the homeowner's responsibility usually ends at the clean-out, property line, or connection with the utility's main sewer line. 4 4

Benefits to City NO COST for the city to participate Generates revenue for your city Peace of mind for your residents Affordable rates for residents Easy implementation Service from trusted local contractors All repairs performed to local code 5

What Citizens Are Saying… “I recently had a huge problem with my sewer line and I cannot begin to express how helpful it was to have this coverage. It gets increasingly difficult to keep up with repairs. Having the warranty made it easy.” – Marsha B., New Brighton, PA “After my recent home fire, it was very comforting to contact SLW and be told that my line would be immediately repaired. The fast service was truly appreciated, and I highly recommend your service - I have already recommended SLW to all my family and friends.” – James H., Charleston, WV 6

Program Testimonial A PARTNERSHIP WITH BECKLEY, WEST VIRGINIA On USP’s turnkey solution: “Working with USP is really easy. They take care of everything — marketing, billing, and customer service. All we had to do was review and approve the letter to customers.” First campaign results: “We were delighted with the response from our citizens…providing a service to our residents which helps them avoid costly repairs, that’s something they really appreciate.” – Beckley Mayor Emmett Pugh 7

Local Partners 8 8

Implementation 1.Upon approval from city council (if applicable), execute contract provided by USP (upon contract execution, USP will immediately begin to recruit and screen local contractors) 2.Approve Press Release provided by USP (general notice to eliminate resident confusion/city calls) and if desired, distribute to local media and/or post to the city website 3.Send the following to USP for the creation of the citizen solicitation letter: a)City Seal artwork, if available b)Name/Title of designated signor plus signature c)City Address for outer envelope 4.Approve Zip+4 list of city territory 5.Approve Campaign Letter provided by USP 6.Access Monthly Reporting via the web 9 9

Enrollment Opportunities USP provides three windows of enrollment opportunities for every resident  Two Formalized Direct Mail Campaigns performed each year in the Spring and Fall because through extensive history and experience, USP has determined these are the optimal windows for these offerings  Spring – Drop dates are scheduled between March 1 and March 15  Fall – Drop dates are scheduled between September 1 and September 15  Internet Enrollments are available after the Zip+4 approval and subsequent list purchase 365 days per year at  Phone Enrollments are available every business day from 9am to 5pm through our toll free Customer Care 800 Line 10