1. Ross/Capacity Alternative Risk Transfer Presentation

2. Ross & Company 1. Consultative Approach a. Enterprise Insurance Assessment i. Provides you with a complete review of your company’s exposure to risk and an independent analysis of your current insurance program. 2. Full Disclosure a. Ross & Company – Income (Commissions or Fees) b. No Hidden Costs – No Surprises c. Loss Runs – Delivered on a quarterly or semi-annual basis d. Specifications provided i. We will provide you with a complete copy of any market submissions made on your behalf, including Applications, Supplemental Applications, Loss Runs, etc. 3. Total Professionalism & Expertise a. We specialize in developing long term relationships with our clients and their insurance companies. We will develop market studies each year to determine if your account warrants a full market submission. We will do this on a Line of Business basis.

3. Ross & Company 4. Dealing with Partners/Principals You will only deal with a Ross & Company Partner/Principal, we: a. Sell b. Service c. Own i. No Turnover ii. 1:1 Approach (Our Principals working with yours) 5. Boutique Value a. We left a Major Firm to use what we know to deliver: b. Value Added Services i. Fee vs. Commissions ii. Loss Control & Engineering iii. Constant Contact including Service Calendar iv. Penalty Clause – 80/20 for all clients (fee based programs) v. Cost Recovery Analysis

4. Ross & Company - Management PAUL J. MICHAELS, Principal – Ross & Company: Prior to reforming Ross & Company, Paul was the former Executive Vice President of Fleet Insurance Services, a wholly owned subsidiary of Bank of America. He retired from this position October 1, 2004. Prior to retirement he headed Fleet's property casualty position with his primary responsibility being sales and marketing. During his five year career at Fleet, the company grew from 20M to approximately 70M. Paul is a former principal owner of Ross & Co., a mid-market property casualty broker, which grew from $300,000 in revenue to 9M before it was sold to the bank. In his position as the director of sales and marketing, Paul oversaw and directed the dynamic growth of this company. Ross & Co. maintained a philosophy of growth through sales and service and not through mergers and acquisition. The Agency consistently maintained 93% retention. Paul's experience of 30 years includes company, direct writing, and prior agency experience. LOUIS R. HEFTER, Managing Partner – Ross & Company Prior to reforming Ross & Company, Louis was a Senior Vice President and Moving & Storage Practice Leader at Fleet Insurance Services, a wholly owned subsidiary of Bank of America. Louis’s responsibilities at Fleet included sales & marketing. Louis and Paul oversaw and directed the growth of the Moving & Storage Division of Fleet. Louis is a former Senior Vice President of IWA, an insurance brokerage firm specializing in bailee and marine insurance.

5. Risk Transfer Strategies, LLC Alternative risk solutions for the independent insurance agency network. Over 30 years experience in all aspects of Alternative Risk Transfer and Captive formation and management. Negotiated agreements on behalf of the companies, including Bermuda and Grand Cayman management companies, law firms, chartered accountants, and banks. Formed over 30 agency owned/single parent/group captive insurance and reinsurance companies, including preparation of required regulatory data. Developed over 25 Rent – A – Captive Programs. Acted as liaison to all parties involved in ART transactions.

6. Risk Transfer Strategies, LLC – Management MARIO J. VITIELLO has held senior positions in Finance, specializing in risk management for more than 25 years. He is currently the President and CEO of Risk Transfer Strategies, LLC. Vitiello served as Vice President and Controller for Crum and Forster Commercial Insurance and Senior Vice President of Financial Services for Crum and Forster Underwriters Group. He has facilitated ART mechanisms for most lines of coverage. Prior to Risk Transfer Strategies, LLC, Vitiello was the President of U.S. RE Risk Alternatives, LLC.

7. Captive Highlights Over 25 years experience in most aspects of Captive Alternative Risk Management. Formed 25 agency owned captive (reinsurance) companies including preparation of offering materials and presentations. Served as Treasurer to each of these companies. Facilitated over 200 independent insurance agent brokers who were owners of the above companies who generated over $250 million in direct premium. Captive companies wrote Third Party Risk in mostly all lines of business in all states. Negotiated agreements on behalf of the companies including Bermuda and Grand Cayman management companies, law firms, chartered accountants and banks. Developed reinsurance contracts for captives and rent-a-captives.

8. Captive Highlights - Continued Acted as liaison to all parties identified above. Formed association captives and single parent captive companies. Involved with the establishment of underwriting guidelines, claims procedures, and strategic planning for each captive company. Developed over 25 Rent-A-Captive Programs. Provide alternative risk consulting services to several National Insurance Companies. Developed several alternative risk products.

9. Development of Alternative Risk Insurance Programs Formation and Management of Captive Insurance Programs Product Development Feasibility Studies Financial Analysis

10.  Captives - A Captive is an insurance company created to insure the risks of a business, a group of businesses, or other affiliated organizations. Captives insure the risks of their sponsors. They are capitalized to make insurance available at a lower cost and provide the opportunity to earn investment income and share in underwriting profit.  Rent - A – Captives – Rent-A-Captives differ from captives in that they rent services to other partners in return for a management fee. Insureds generally do not share each others risk. Rent- A-Captives provide captive facilities to parties that cannot afford the expense of operating a captive company or are not interested in the ownership and management responsibilities. In addition to the advantages provided by a Captive, Rent-A-Captives provide such benefits as reduced administrative expenses, flexibility-structure, and ease of implementation

11.  Purchasing Groups - Purchasing Groups consist of two or more insured entities who band together to purchase liability insurance from an insurance company. Each entity has its own policy and does not share risks with other members. The insurance company providing coverage to the Purchasing Group members is generally required to be licensed in those states where coverage is afforded.  Risk Retention Groups - Risk Retention Groups (RRGs) can be described as captive insurance companies with multiple owners. They are only permitted to write commercial liability insurance. Under the Federal Risk Retention Act of 1986, an RRG licensed in only one state is permitted to write insurance in all 50 states. This eliminates the expense of obtaining licenses in all states or making arrangements with fronting carriers.  Self Insurance Programs - A Self Insured Retention (SIR) is a loss fund established by the insured to pay losses up to a certain level before insurance and reinsurance. One benefit is the lower net cost of insurance. This structure is usually used in liability or casualty insurance, and it allows insureds to handle their own claims.

12. Control  Insured establishes control over the entire program in managing underwriting requirements,  claims practices and procedures, and vendors.  Insured is involved in designing and managing the program. Flexibility  Determines the level of risk / reward opportunity.  Insurance program becomes a profit center.  The program, vendors, policies and procedures can be adjusted.  The unbundling of services may improve the expense structure, thereby reducing the overall cost of the insurance product. Risk / Reward  Cash flow benefits.  Funds are generally retained to pay claims for several years.  Funds earn investment income.  Investment vehicle rather than a pure expense to the insured.  When underwriting results are better than expected, underwriting profit should be realized. Market Stabilization  Many insureds are seeking stability in dealing with one market.  Many programs are offered as multi-year deals

13. The following should be considered when determining usage of an Alternative Risk Transfer (ART) Product:  Having premium levels for worker's compensation, general liability, and automobile liability greater than $1.5 million.  Insureds already taking a level of risk through a deductible and retrospectively rated policy.  Insureds having financial stability and creditability to assure and fund losses and collateralize any gap.  Insureds committed to a long-term plan: It should take 3 - 5 years to determine the profitability of year 1; Collateral should level out after 3 years.  Insureds possessing strong risk management practices.  Insureds having difficulty in purchasing insurance due to market conditions and/or nature of business.  Insureds with a good understanding of the concepts of ART products.

14. EXPECTATIONS BY THE INSURED:  Thinking long term, not short term.  ART providing firm control, flexibility, risk/revenue, and market stability. Insureds must understand these key benefits.  Focusing on premium as an investment and not just expense.  Understanding that tax benefits are not the primary reason. Most tax advantages have been eliminated.  Considering other lines of business for inclusion except for umbrella coverage.  Generally, property is not included, however, if there is a good spread of risk, it may be practical and a good funding vehicle.