PREFERRED RISK LOGISITICS THROUGH M2M -- DISCUSSION

AGENDA DRIVING FACTORS ELEMENTS OF A PREFERRED RISK APPROACH WHO ARE THE PLAYERS? BENEFITS OF A SECURED RISK LOGISTICS

APPROACH HOW DO WE MEASURE THE BENEFIT?

PREFERRED RISK LOGISTICS THROUGH M2M -- SPEAKER BIOS

GLOBAL SOLUTIONS INSURANCE SERVICESGLENN STEBBINGS, GSIS CompaniesPresident & C.E.O.

MICHAEL STOLL, GSIS CompaniesVice President of Risk Management, Underwriting and Sales DepartmentDirector of Claims and Recovery Division

PREFERRED RISK LOGISTICS THROUGH M2M SPEAKER BIOS – Glenn Stebbings

BBA Specialization Insurance The College of Insurance division of St.John’s University New York City. Masters Degree in Applied Psychology. University of Santa Monica. Memberof Vistage International since 2008 largest organization of Company Presidents and C.E.O’s globally. Glennbrings more than thirty seven years of experience dedicated to international and domestic transportationindustries providing insurance products and services, including underwriting, claim adjustment, recoveries,risk management and marketing. He is a noted speaker at trade association conferences. With his lengthyexperience in the insurance industry he brings a an extensive network of contacts within every area of theinsurance industry and trade community. Extensive experience and technical knowledge of coverage’srequired for companies involved with international and domestic trade and laws regulating transportationcarriers. Founded one of the first companies to develop technology to support Marine Cargo and Suretyindustry. Developed Nationwide Insurance and Risk Management Program “Broker Shield” for domesticlogistic operations which provides all lines of coverage required, contract review process, risk managementservice, claims control and claim management and adjustment support. Principal architect of industry firstsoftware developed for cargo, surety and claim adjustment process designed to reduce the costs associatedwith underwriting and administration of these products. Developed Claim adjustment technologysignificantly reduces the time associated with the claim adjustment process and provides claims data reportsto support risk management and claims control. He is published author in logistics trade journals. Designedand instituted nationwide insurance training program for fortune 500 companies involved with internationalfreight forwarding in providing cargo insurance to their customer base. Mr. Stebbings has developedinsurance and risk management programs for every segment of the international and domestic logisticsindustries to address the exposures that are so unique to these industries.

PREFERRED RISK LOGISTICS THROUGH M2M SPEAKER BIOS – Michael Stoll

Michael is a preeminent authority in financial and operational Risk, Claims, LitigationManagement and insurance Service, with recent specialization in the logistics industry.Michael’s background prior to GSIS and Subrogateway includes Vice President of RiskManagement for a $2 billion international logistics firm where he pioneered new insuranceproducts, claims, litigation management and risk reduction practices over an 11 year periodthat saved over $20 million and consistently proved superior in benchmark comparisons withother leading logistics firms, that were also customers. Over the previous 20 yearsMichael has held Director or Executive positions with several insurance brokerage firms and aspecialty insurance company, while dealing in group and individual risk solutions via insurance,reinsurance, captive, self-insurance and Risk Purchasing group approaches. Michael is a member of the Risk and Insurance Management Society and was a Risk &Insurance Management Society 2010 Conference Session Coordinator and Speaker. He hasauthored numerous articles on the subject of managing financial and operational risk andclaim management.

Colleagues have described Michael as an insurance and insurance market expert, a resourcefuland accomplished problem solver with a passion for excellence.

PREFERRED RISK LOGISTICS THROUGH M2M

DRIVING FACTORS --GROWING SECURITY RISKS

Increased Incidence of Hi-Jackings Target Cargo at risk is redefined Fraud & Collusion on the Rise Law Enforcement Overload

PREFERRED RISK LOGISTICS THROUGH M2M

DRIVING FACTORS -- GROWING SECURITY RISKS

CARGO THEFT INCIDENTS UP 30% in 2010 vs. 2009

240% INCREASE IN CALIFORNIA

100% INCREASE IN TEXAS

100% INCREASE IN GEORGIA

80% INCREASE IN FLORIDA

PREFERRED RISK LOGISTICS THROUGH M2M

DRIVING FACTORS -- GROWING SECURITY RISKS

THEFT RATES INCREASE AS THE ECONOMY DETERIORATES – LOWER RETAIL SALES & HIGHER UE = HIGHER THEFT RATE

THEFT RATES ARE HIGHER ON SATURDAY, SUNDAY & MONDAY DUE TO WEEKEND TERMINAL USE

THEFT RATES ARE HIGHER IN AUGUST & SEPTEMBER -- CHRISTMAS SHIPPING SEASON

THEFT RATES RISE IN NOVEMBER & DECEMBER - HIGHER WH INVENTORY DUE TO CHRISTMAS SEASON

Data derived from CARGO NET 2010 CARGO THEFT REPORT

PREFERRED RISK LOGISTICS THROUGH M2M

DRIVING FACTORS -- GROWING SECURITY RISKS – TARGET CARGO PROFILE

2010 2009ELECTRONICS 17% ELECTRONICS 49% FOODSTUFFS 13% FOODSTUFFS 9%APPAREL 10% APPAREL 4%METALS 7% MACHINERY 4%PLASTICS & RUBBER 6% LIFE SCIENCES 3%MACHINERY 5% 69%PERSONAL/BEAUTY 4%ANIMAL PRODUCTS 4%PHARMA 3%

69%

RISING THEFT RATES FAVOR A BROAD RANGE OF RESELLABLE COMMODITIES Data derived from CARGO NET 2010 CARGO THEFT REPORT

PREFERRED RISK LOGISTICS THROUGH M2M

DRIVING FACTORS -- GROWING SECURITY RISKS

THEFT RATES INCREASE ACCORDING TO: LENGTH OF HAUL - CARGO AT RISK IS CARGO AT RISK CONDITION OF ECONOMY TIME OF YEAR DAYS OF THE WEEK TYPE OF COMMODITY

THEFT RATES ARE RISING AND FOCUSING ON A BROAD RANGE OF RESELLABLE COMMODITIES

Data derived from CARGO NET 2010 CARGO THEFT REPORT

PREFERRED RISK LOGISITICS THROUGH M2M

DRIVING FACTORS – RISING TRANSIT COSTS

Fuel Regulation Insurance

PREFERRED RISK LOGISITICS THROUGH M2M

DRIVING FACTORS – NEED FOR IMPROVED COST EFFICIENCIES

Reduced Freight Loss Reduced Insurance Cost Improved Logistics Management

PREFERRED RISK LOGISITICS THROUGH M2M

DRIVING FACTORS – NEED FOR IMPROVED DELIVERY METRICS

Efficient Routing Reduced Freight Incidents Improved On-Time Delivery

PREFERRED RISK LOGISITICS THROUGH M2M

DRIVING FACTORS – INCREASE IN NON ASSET PROVIDERS

Small Motor Carriers Leaving Industry Freight Broker Entries Increasing Emphasis on Logistics Management Competition for Shippers – Need to Stand

Out Need for Secure, Safe & On Time Delivery

PREFERRED RISK LOGISITICS THROUGH M2M

ELEMENTS OF A PREFERRED RISK APPROACH

Real Time Monitoring & Communication On the Ground Security and Law

Enforcement Response – Timely Preferred (Unique) Treatment as respects

Insurance Coverage and Cost

PREFERRED RISK LOGISITICS THROUGH M2M

WHO ARE THE PLAYERS?

M2M Service Provider – State of the Art Sentry Monitoring and Electronic Safety Net

Cargo Securement Service Provider -- Security Monitoring and Law Enforcement Network.

Global Solutions Insurance Services and Subrogateway U.S.A. (GSIS Companies) – Proprietary Insurance Coverage and Pricing, Risk Management & Claim Services

PREFERRED RISK LOGISITICS THROUGH M2M

WHO ARE THE PLAYERS?– M2M SERVICE PROVIDERSTATE OF THE ART 24/7 REAL TIME MONITORING

PROVIDES AUDITABLE TRANSIT CHRONOLOGY: DEPARTURE – ENROUTE – STOPS - ARRIVAL

PROVIDES SIGNAL INTEGRITY PROTECTION VIA MULTI SENSOR ALGORITHM GEOGRAPHICAL POSITIONING ROUTE DEVIATIONS CONDITION OF CARGO TEMPERATURE CHANGE ATMOSPHERIC CONDITION CHANGE DOOR POSITION CHANGE CARGO SHIFT SPEED

PREFERRED RISK LOGISITICS THROUGH M2M

WHO ARE THE PLAYERS?– CARGO SECUREMENT SERVICES LAW ENFORCEMENT & SECURITY NET

24 X 7 MONITORING FOR SECURITY RESPONSE FOR CARGO INCIDENTS 24 X 7 DRIVER HOTLINE TO REORT CARGO INCIDENTS LAW ENFORCEMENT & SECURITY NETWORK OF 189,000 PARTIES SUPPLY CHAIN OPTIMIZATION ANALYSIS BORDER NOTIFICATION

PREFERRED RISK LOGISITICS THROUGH M2M

WHO ARE THE PLAYERS?– GLOBAL SOUTIONS INSURANCE SERVICES PREFERRED RISK LOGISTICS INSURANCE COVERAGE & COST SOLUTION

PROVIDES SUPERIOR ALL- RISK CARGO INSURANCE AVOIDS TYPICAL CARRIER COVERAGE GAPS IMPROVED COVERAGE TRIGGER IS PROOF OF LOSS – NOT SOMEONE’S

LEGAL LIABILITY INSURANCE RATES TYPICALLY 20% to 40% LOWER INSURANCE CLAIM MANAGEMENT & SUBROGATION-RECOVERY SERVICE EVALUTION OF PREFERRED CONTRACTUAL LANGUAGE CURRENT COVERAGE & RISK MANAGMENT AUDITS SERVICE BY PREEMINENT AUTHORITIES IN THE LOGISITICS FIELD

PREFERRED RISK LOGISITICS THROUGH M2M

BENEFITS OF A SECURED RISK APPROACH

IMPROVED INSURANCE COVERAGE AN ALL-RISK FORM – COVERAGE IS TRIGGERED BY

PROOF OF LOSS OR DAMAGE – DOES NOT REQUIRE LEGAL LIABILITY

IMPROVED COST INSURANCE COST REDUCED 20% to 40% CLAIM REDUCED 50% to 80%

PREFERRED RISK LOGISITICS THROUGH M2M

BENEFITS OF A SECURED RISK APPROACH - SUMMATION

Materially Reduced Freight Loss Reduced Claim and Insurance Cost Improved Delivery Metrics More Attractive and Competitive Service Improved Market Profile Enhanced Customer Satisfaction

PREFERRED RISK LOGISITICS THROUGH M2M

HOW DO WE MEASURE THE BENEFIT?

A. CURRENT CLAIM & INSURANCE COST $500,000

PREFERRED RISK CLAIM & INSURANCE COST $180,000 MONITORING & SECURITY SERVICE COST $ 90,000 B. PREFERRED RISK TOTAL COST $ 270,000

C. IMPROVED COST (A MINUS B): $230,000 46%

OTHER COST FACTORS: IMPROVED MARKETABILITY ADDITIONAL BUSINESS