August 15, 2001
Ms. Client
Group Senior Vice President
Client.
Address
Chicago, Illinois 60611
RE: Letter of Understanding – California Revenue Enhancement
Dear Ms. Client:
Firm XYZ (XYZ) appreciates the opportunity to assist the Client with the California
Revenue Enhancement project, including Bank A (BANK A), Bank B (BANK B), and
Bank C (BANK C). We have enjoyed teaming with CLIENT Cash Management to
complete the Bank B Revenue Enhancement project, and look forward to contributing to
the success of this project.
This agreement is executed pursuant to the Professional Services Agreement between
CLIENT North America, Inc. and Firm XYZ (XYZ) dated as of December 9, 1999, as
amended on April 25, 2000 (the Agreement). It addresses the project scope, approach,
staffing, timing and our estimated fees.
Project Scope and Approach
We will gather the BANK A, BANK B, and BANK C revenue data for June 2001 and
build a model to identify the gaps between the standard and exception prices for each
customer. We will distribute reports to the Relationship Managers to review the
exception pricing by customer, and identify opportunities to increase the pricing for those
customers. We understand that the top 50 revenue customers for BANK A and BANK C
will not be included in our analysis, as well at the top 10 volume customers for each
product line (top 20 for Controlled Disbursement). The top 10 revenue customers for
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August 15, 2001
BANK B will be excluded. The project is scheduled to begin August 2, 2001 and is
estimated to last five weeks.
Project Staffing
Firm XYZ Resources
Lucy Brown will be the project manager for the engagement. A Business Analyst will
assist with the gathering of data, building the model, and documentation of business rules.
Conor Jones will be the engagement director and provide overall project direction. Linus
O’Reilly will be the coordinating Vice President responsible for the project.
CLIENT Resources
CLIENT will provide resources to assist in identifying the existing CLIENT pricing
schedules. The Project Sponsor will be Patty Klonowski. A Steering Committee
consisting of stakeholders from the Cash Management Sales and Product Management
areas will provide overall direction for the project and help resolve critical issues:




Tom Jones
Peter Brown
Tom Smith
Brad Grey
Timing and Fees
Based on the project approach and timeline, the activities to perform the project are
estimated to take approximately five weeks. We anticipate starting this project on August
2, 2001. Our estimated fees for this project are $125,000 plus expenses.
It is our practice to estimate and bill for our professional fees in advance on a monthly
basis. The actual hours will be reconciled at the end of each month, and the subsequent
month’s bill will be adjusted accordingly. Upon project initiation, we will estimate and
bill our fees for the first month of the project. At the completion of the project, any
estimated hours billed will be reconciled to actual hours incurred. Related business
expenses will be billed monthly, as incurred, in addition to our professional fees.
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August 15, 2001
We look forward to continued work with you and the opportunity to provide the
resources, methods, tools and leadership required for your success. We ask that you
indicate your understanding of this letter and Firm XYZ’s participation in the California
Revenue Enhancement project by signing below. If you have any questions, please
contact Linus O’Reilly at (312) 654-1234 or Conor Jones at (312) 654-1235
Sincerely,
Linus O’Reilly
Vice President
Firm XYZ
Authorization to Proceed
I agree to the scope and terms of this letter and I accept Firm XYZ’s proposal to proceed
with this project.
Group Senior Vice President, CLIENT NA
Date