Agenda Page S Y S T E M & P R O C E S S I M P R O V E M E N T S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L Copyright 2014 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T Texas Tech University System – Current State university system Four components: Texas Tech University TTU Health Sciences Center Angelo State University TTUHSC at El Paso Relatively recent growth – Angelo State added in 2008, with TTUHSC at El Paso split off as a separate entity in 2013 Thirteen total campuses; nine requiring depositories Nine different depository relationships TTUS Campuses * 1

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T Request for Proposals Impetus? Survey marketplace for availability of new technology (8 years since previous RFP) Best Practices – go out every 5-7 years Opportunity to reevaluate processes, looking to eliminate redundancies & paper Desired Outcomes Approved list of available depositories Components able to choose from approved list System-wide evaluation & approval, with System Treasury, System CFO, component CFOs/Controllers on evaluation committee If all components choose the same depository, that’s the best outcome from a Treasury perspective. 2

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T Request for Proposals - Objectives 1) Leveraging System scale on fee & rate pricing 2) Consistency of processes across System 3) Better cohesion among System components 4) Single standard contract for services 5) Simplification for Treasury management 3

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T Market Advantage & Economies of Scale Before 9 separately negotiated contracts, many standard commercial templates RFPs only previously applied to Lubbock & San Angelo campuses, and were done separately Goal Smaller and/or more remote campuses benefit from System fee schedule Easier to monitor Account Analysis compliance with contracted fee schedule Component ability to add services in future with costs known up front Reduction of overall System costs 4

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T Consistency of Processes Before Multiple departments reconciling accounts, some manually Multiple online portals – non-standardized user administration, multiple secure tokens for users, varying levels of approval required for transactions Confusion among departments on who to contact for service, and among bank personnel on approved contacts Accounts opened by related groups under System EIN Goal Automated reconciliation for all accounts Centralized online administration with dual control for all non-repetitive transactions Centralized points of contact within each organization Improved fraud prevention and detection 5

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T System Cohesion Before Component fiscal operations very decentralized 2 of 4 components added fairly recently, and have operated autonomously since addition Goal Increased view by components as being part of the System, utilizing its expanded resources & scale – banking is one of few services able to be shared across the System First step towards having consolidated operating investment pool and accounting systems 6

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T Legal Impact Before 9 separately negotiated contracts, many standard commercial templates No standard review over contracts Goal Standardized services available and approved, allowing components to choose a la carte Contracts are in compliance with state statutes & guidelines 7

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T Treasury Simplification Before Collateral spread across several accounts Multiple online portals – cash monitoring & movement harder to analyze Aggregation of cash balances for reporting performed separately by staff Goal Centralized collateral management Single portal (or reduced number) for managing & reporting cash 8

S Y S T E M C O H E S I V E N E S S & P R O C E S S I M P R O V E M E N T Barriers to adoption Banks have traditionally had branches in the city where the client has operations Hard to overcome perception & comfort level Possible Solutions: Remote check scanning Smart safes Did maintain local bank relationships at Lubbock & San Angelo campuses Previous depository relationship lasted 14 years Relationship was first where System utilized data feeds Customization present in most processes Staff only seen one way of operation Solutions: Process examination after long period reveals efficiencies – both from partner & within System; actually an opportunity Technology – both to push processes down & share information No branch deposits Change! 9