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MISSION STATEMENT We at Strategic Administration Group will apply decades of cumulative knowledge with the intention of placing a dealer principal in the best possible revenue generating position We envision a relationship with our clients that produce a trustworthy environment where honesty and integrity prevail first and foremost We will apply methods learned to the ever changing Reinsurance marketplace ensuring our clients will receive the best possible customer service Strategic Administration Groups commitment and focus will provide you with unique solutions to your business needs Also the highest level of service to you and your customers Lastly we will use our extensive and adaptive company structure to apply this all encompassing strategy CORE COMPETENCIES Strategic Administration Group provides administration services We specialize in risk management reinsurance solutions and a customizable product suite Reinsurance is our specialty We provide comprehensive technology structured to fit dealer needs Our insurance partners and technology platforms open the door to bring The Total Solution to your business Our claims department employs master mechanics and service writers to ensure an effortless adjudication process

REINSURANCE SERVICES Reinsurance is one of our core competencies A reinsurance structure creates a complete partnership with clients Strategic Administration Group will work with you to create the ideal structure to meet your business needs Through reinsurance we become long term partners instead of commodity product providers The goal is becoming your wealth management consultant in creating profitable portfolios and risk management solutions Strategic Administration Group provides the following reinsurance services Complete Formation Annual Renewal Actuarial Analysis Financial Statements Tax Preparation Portfolio Risk Management Strategic Administration Group will form reinsurance corporations domiciled domestically or offshore We use Reinsurance as the key to unlock your additional earning potential SAGI Earning Potential YOU

5 KEYS TO REINSURANCE SUCCESS 1 Multiple Product Opportunities Vehicle Service Contracts Limited Warranties GAP Monthly Pay Warranties CPI VSI 2 Administration 0 RISK TO THE DEALER Pointed Claims Scrutiny Monthly Statements Underwriting and Investment Income 3 Loss Ratio Management Time Mileage Limitations Rate Card Deviation Coverage Control Tie Back to Selling Dealer 4 Reinsurance Company Management Turn key Setup Maintenance Tax Returns Cession and P L Statements 5 Fee Structures Control Company Options Full ARC Ownership Pod Share Company Profit Share Commitment NOTHING TO LOSE EVERYTHING TO GAIN

TECHNOLOGY Our technology platform integrates with most DMS systems and menus Automation of all products eliminates many mistakes while creating total accountability and efficiency in processing and tracking your dealers business With automation policy terms conditions and or rate changes can be adjusted immediately Functionality Includes Online claims procedures and processing Contract remittance Claims record keeping and reference Documentation of cancellations Contract status lookup i e expired canceled Obtain cancel quote Submission of cancellation online Carefree maintenance program administration PRIVATE LABELING As an additional value added service for the dealer Strategic Administration Group will assist you in creating a private label program

VEHICLE SERVICE CONTRACT HERE S HOW IT WORKS You Sold 5 VSC Throw Aways 2 000 each 1400 warranty cost You make 600 contract 10 000 IN TOTAL RESERVES 7 000 TO WARRANTY COMPANY 3 000 TO YOUR DEALERSHIP Claims processed by insurance carrier You have no say if they pay a claim or not Your 3000 will fall under business income and tax implications BUT WHAT HAPPENS IF You Sold 5 VSCs You Own 2 000 each standard 35 claims 10 000 IN TOTAL RESERVES 3 000 DEALERSHIP PROFIT 7 000 TO ADMINISTRATION INS 2 450 PROJECTED CLAIMS 7550 PROFIT TO YOUR DEALERSHIP Claims processed by administration you have override privileges Your 4 550 will fall under dividend returns better tax advantage Administration fees TBD 0 RISK TO THE DEALER For illustration purposes only Please consult your CPA or attorney when making tax decisions

BHPH LIMITED WARRANTY AND OR MONTHLY PAY WARRANTY YOU SELL 25 NOTE CARS WITH NO WARRANTY Out of Pocket how many claims have you paid in the past year Of those claims how many were paid as good will Can you say NO With minimum cost would a plan to offset those expenses be worth it What if the customer paid for a 12 month 12 000 mile warranty monthly What if you received that money back after claims Every qualified vehicle enrolls at the time sale Existing Claims Experience 35 YOU SELL 25 NOTE CARS WITH WARRANTY REINSURED Monthly Pay 12 Month 12 000 Miles or 24 24 000 Miles Options 99 Down Administration Insurance Suggested 40 Per Month Total Cost 480 PER YEAR Coverage Powertrain A C Towing Cancellable Dealer Options for Owning the Reserves Claims Processed By Administrator 0 RISK TO THE DEALER For illustration purposes only Please consult your CPA or attorney when making tax decisions

GAP COVERAGE HERE S HOW IT WORKS Premium charged is usually a single premium paid at inception of the insurance It is usually financed along with the asset principal of the credit Retail Premium ranges from 300 600 80 Collision 83 Theft 11 Fire 2 Act of God 1 60 40 20 0 Vehicle Value 100 GAP Loan Balance Actual Cash Value Causes of Loss Months In 2015 there was 50 increase in claim frequency compared to prior 3 years Depreciation of used vehicle market automobiles are not holding their value as they had in the past Primary Insurance Carriers are becoming very creative in adjudicating their total loss claims and are taking advantage of the depressed used car values resulting in lower claim payouts Recent new auto dealer incentives are causing the used car market to depreciate Retail Price cannot exceed 5 of financed amount of contract Maximum financing limit 150 of MSRP Up to 85 000 One rate one term or tiered options available 24 72 Months For illustration purposes only Please consult your CPA or attorney when making tax decisions

COLLATERAL PROTECTION COVERAGE VSI FACTS ABOUT YOUR BUYERS No accurate forecasts of economy s direction Unemployment rate highest in years Will it increase Underemployment creates hardships Foreclosures defaults delinquencies have increased dramatically Consumer pocketbooks are stretched Consumers are faced with difficult spending decisions including maintenance of insurance coverage THE REMEDY FOR THE MARKET SHORTAGES A Dealer Portfolio Application is completed to establish exact premium quotes and policy issue One Time and Monthly Premiums are calculated on a per loan basis based on term and range of coverage Policies are written for 12 48 months Policies can be renewed annually covering any terms within the portfolio Premiums average from 85 to 120 depending on term length new business only or covering existing portfolio This program is completely reinsurable SIMPLY PUT If you write 15 20 CPI contracts per month long term it could be worth 1 000s per year For illustration purposes only Please consult your CPA or attorney when making tax decisions

6 YEAR SAMPLE ROI ON 3 PRODUCTS 1 5 Retail VSCs 2 20 CPIs 3 25 Limited Warranties YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 Contracts Sold 600 600 600 600 600 600 Average Reserve 345 345 345 345 345 345 Premium Written Run off Total 3 600 207 000 207 000 207 000 207 000 207 000 207 000 Premium Earned 29 268 Incurred Claims 88 434 135 063 159 849 180 099 207 000 442 287 1 242 000 49 568 56 597 65 700 145 175 394 200 8 874 26 901 41 387 Underwriting Profit 20 394 61 533 93 677 110 282 123 503 141 300 211 036 847 800 Funds to Invest 99 063 290 157 468 816 639 715 806 428 968 408 Investment Income 1 981 5 803 9 376 12 794 16 129 19 368 100 262 165 714 Pre Tax Income 22 375 67 336 103 053 123 076 139 631 160 668 397 375 Accumulated Pre Tax Income 22 375 89 711 192 764 315 840 455 471 616 139 1 013 514 1 013 514 For illustration purposes only Total Pre Tax Please consult your CPA or attorney when making tax Income decisions

877 938 3332 2413 North Main Street Suite E Fort Worth TX 76164

10 000 GUARANTEE Stop Sending YOUR Money to a Warranty Company Keep ALL the Money in YOUR Dealer Owned Insurance Company Earn Investment Income on YOUR Reserves in YOUR Company 100 Ownership of YOUR Dealer Owned Insurance Company Guarantee If at the end of six 6 months you are not 100 satisfied we will write you a check for 10 000 00 The funds will be delivered to Dealer within 30 days in the form of a certified cashier s check Conditions Write a minimum of ________ contracts per month Limited Warranties Service Contracts with an average minimum reserve of ________ 00 per service contract Service contract premiums must be remitted to Strategic Administration Group every thirty 30 days Dealer cannot have removed any funds from the reinsurance trust account If GUARANTEE is exercised Dealer must assign reinsurance reserve balance to SAG Please consult your CPA or attorney when making tax decisions

10 000 GUARANTEE Continued SAG Services Electronic vehicle rating contract generation claims adjudication and sales cancellation claims reporting Fully insured program by A rated Insurance Company Complete formation management administration and reporting for YOUR reinsurance company Annual renewal tax filings cession statements and reporting This GUARANTEE is made this _____ day of _______________ in the year _______ between __________________________________________ Company and ______________________________________________ Dealer by _______________________________________________ ______________________________________ ____________ Company Signature Date ______________________________________ ____________ Dealer Signature Date Please consult your CPA or attorney when making tax decisions