International Networking Credit & Political Risk May 2, 2006

Credit Risk  New Sale  Unknown Buyer  How do you sell to this buyer?

Options  Cash in Advance  Confirmed Irrevocable Letter of Credit  Unconfirmed Letter of Credit  Sight Draft/CAD  Open Account

Open Account  Your Buyers Best Option

 Credit Application  Credit References  Bank Reference  Credit Report  Request Financials  Internet  Credit Evaluation Source Know Your Customer

Be Organized  Start a Buyer File  Monitor Account  Update Trade Reference  Update Credit Report  Re-request Financials  Constant Contact

 Monitor their payment History

Commercial Risk.  Insolvency  Bankruptcy  Protracted Default

Unforseen Risks  9/11, Terrorism, et al.  Natural Disaster  Fraud  Dominican Republic, Venezuela, Brazil, Argentina  SARS / Asian Bird Flu / Mad Cow Disease  North Korea / Taiwan  Gulf Region / Middle East  Russia, PRC

Evaluating Country Risks  Countless Resources  US Government  Private Publications  Ask Your Banker

Political Risks  Failure to pay by government buyers  Currency inconvertibility / transfer risk  Hostile actions  Cancellation Import License

How to Mitigate Risk  Turn the Sale Down  Cash in Advance  Factoring  Credit Insurance

What is Credit & Political Risk Insurance A receivable insurance product that allows an insured to transform unforeseen commercial and/or political obstacles into manageable risks

Benefits  Risk Management  Competitive Terms  Bank Financing

Product Offering  Traditional Whole Turnover Insurance Policy - Political only or Comprehensive Coverage  Customized “Key Account” Credit Insurance Policy By Subsidiary or Division By Region By Product Line  Top Credit Exposures Co-Insurance or Excess of Loss  Traditional Single Buyer Credit Insurance Policy

Corporate Background Established in 1979, Export Insurance Agency (EIA Global) is specifically designed to assist and counsel United States companies in international and domestic insurances. We are a leader in the export credit and political risk field. Our broad base of clients range from small manufacturers to Fortune 500 companies. Export Insurance Agency acts as an intermediary between the Insured and the Insurer to obtain the best possible insurance package for our clients. The past and future success of Export Insurance Agency is directly related to our strong professional relationships within the international and domestic insurance community. The foreign marketplace is very volatile and unpredictable. It is essential to stay abreast of all the programs available to mitigate risks. Export Insurance Agency is a widely respected and knowledgeable source of information for our clients. We utilize our experience in the export credit and political risk industry to provide specialized programs individually tailored to our clients needs. Our home office is located in Walpole, Massachusetts and we also have offices in Dallas and Los Angeles.

EIA-Global, A Good Partner Why is EIA-Global a good partner? Experience Expertise Reputation Integrity Resources National and International Offices Service Relationships Insureds Financial Institutions Corporations Underwriters Corporate Philosophy – Get The Deal Done!

Contact Us EIA Global 40 Front Street Walpole, MA Tel.: (508) Fax: (508)