1. Inside page 00/00/0000 1 Today I am here to offer you information on credit insurance as an alternative to the cash deposits, while comparing all of your alternatives. My purpose: Help you evaluate our product as a safe and cost effective way to safeguard your cash flow generated through trade credit at a reasonable cost.

2. Inside page 00/00/0000 2 EHACI provides worldwide business-to-business insurance protection for domestic and international trade receivable transactions. Quick Facts About Credit Insurance from Euler Hermes ACI

3. Inside page 00/00/0000 3 $ Amount at Risk for the PPU EACH BUYERS: Current invoice plus Used but not billed plus Any amount past-due = Dollars at Risk 200% of A/R

4. Inside page 00/00/0000 4 What Can Happen? Account Pays Buyer Insolvency (bankruptcy, foreclosure, etc.) Protracted default (slow pay) Unsatisfied adjudicated disputes

5. Inside page 00/00/0000 5 Cash Deposits No risk if deposit at least equal to the balance due. Often the deposit was taken in the past and customer was not asked to increase the amount on-hand. No cost to the utility- Burdensome to the customer re. Loss of use of the capital. Old customers ask for return of their deposit New and Old customers may seek other source of service

6. Inside page 00/00/0000 6 Letters of Credit Must be managed to be sure it stays accurate. Insignificant typo’s can disqualify payment. Significant Cost to the customer or shared with utility Burdensome to customer re loss of the use of the capital Amount of L/C often less than credit exposure. Requirement could cause customers to seek alternative sources.

7. Inside page 00/00/0000 7 Self-Insurance on Open Account No immediate cost to the utility or the customer. Customers not required to provide financial security Utility responsibility: 1.Exposure to total loss of capital for many reasons affecting both cash flow and solvency. 2.Must check credit worthiness and monitor changes in financial condition not just rely on payment history. 3.Credit decisions can be questioned – who and why each is approved-internal and external political repercussions. Credit losses incurred will affect rates to all customers.

8. Inside page 00/00/0000 8 Credit Insurance Provides guarantee option of 80%, or 90% or 100% reimbursement to the insured Utility Company within a maximum 60 days of filing a claim. Premiums paid by the insured Utility. They can chose to collect the premium from the approved customer since they would no longer need to provide CASH deposit or provide Letter of Credit. EHACI’s PPU policy provides for customer’s initial credit worthiness and monitoring Utility only to report sizeable amounts over 60 days past-due, no other responsibility or onus. Protects Utility from claims of unfairness or biased since credit decisions are made by the Insurer – Utility or Customer can appeal decisions with new information, anytime.

9. Inside page 00/00/0000 9 Calculating your Rate Credit Insurance rates are determined by numerous factors. Including: industry experience and expectations, strength and reputation of the buyers, amount Risk concentration and total amount of sales being insured.

10. Inside page 00/00/0000 10 Calculating your Rate Also important is the amount of participation in the risk selected by each policyholder, such as the amount of deductible and coinsurance or even with no risk sharing at all. The general business rate is approximately 0.002 of the sales to insured buyers.

11. Inside page 00/00/0000 11 The Math Using the maximum expected rate of 0.0016 and applying it to a $50,000. a month commercial user. We would request a $100,000. insured line of credit but the calculation would be $50,000 x 12 months = $600,000 annual billing x rate 0.0016 Which is only $960/year.(tax deductible) Now you have an option to offer your customer to put up $100,000.00 or pay you $80 a month!