1. No Interest Credit Plan

2. OUTLINE o CANEX Credit Plan overview o Usage statistics o Financial impact on CANEX o Estimated cost to CFCF o Overall financial impact o $$$ Savings for plan users

3. CREDIT PLAN OVERVIEW 12 months no interest credit or admin fee on purchases made at CANEX up to $5,000. No limit to number of plans a member can hold. (minimum $199 - maximum $5,000). 24 months plan available - 5% admin fee applicable. Admin fee fully reimbursed if 24 month plan paid in full within the first 12 months.

4. IMPACT OF IMPROVEMENTS TO THE PLAN ( 2 YEARS - $5,000) Nov 00 – Oct 01 Credit sales $8.7M Average AR $4.4M Plans issued 11,079 Active members 5,797 Nov 01 – Oct 02 Credit sales $10.9M Average AR $ 6.0M Plans issued 12,450 Active members 8,865

5. CREDIT PLAN CUSTOMERS  Mostly young couples or single military personnel who live on Bases/Wings.  Many customers with little or no credit history.  First time buyers of furniture, large appliances or electronics.  Monthly payments made via CF or NPF pay allotments or a bank pre-authorized debit.

6. CFCF CONTRIBUTION  The Plan is fully financed by CFCF.  On average 8,900 members avail themselves of this benefit every year.  On average, Credit Plan accounts receivable amount to $6M.

7. SUMMARY OF REVENUE AND EXPENSES FOR CANEX o Revenue to CANEX from Credit Plan. $486,000 o Volume Rebates & Advertising revenue. 158,600 Total revenue $644,600 o Bad debts (4/10 of 1%, Canadian average 2.3%)(43,600) o Royalties paid to Bases/Wings. (163,500) o Net income to CANEX $437,500

8. ESTIMATED COST TO CFCF Loss investment revenue (based on average rate of return of 8%) $480,000 Bank charges for Credit Plan 15,000 Total direct expenses 495,000 Revenue from 5% admin fee (150,000) Total cost to CFCF$345,000

9. TOTAL FINANCIAL IMPACT Additional revenue for CANEX $437,500 Total cost to CFCF (345,000) Total system impact 92,500

10. SAVINGS FOR CUSTOMERS $981,000/year (Based on a 9% interest rate on consumer loans)