TOTAL INSURANCE PLUS INFORMATION BROCHURE FOR NEW MEMBER

TOTAL INSURANCE PLUS INFORMATION BROCHURE FOR NEW MEMBER PROSPECTS Agents Serving Agents Enhancing Results for Independent Agents TM 1 TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

Thanks for your interest! Thank you for your interest in the Total Insurance Plus Network. We know there are many options available to you for accessing carrier markets and revenue sharing agreements, and we think you’ll like our approach. As detailed in this Information e-Brochure, the TIP Network is designed to be straightforward in what we offer, open in our communications with Network Members, and continually seeking ways to improve results within your Agency – through improved revenues, service efficiency, shared knowledge from other Network Members, and more. We judge our success not by our profits, but by the profits and satisfaction of our Network Member Agencies. . yours!! As “Agents Serving Agents, ” we’ll work hard to earn your respect and trust, and we look forward to you becoming a part of the Total Insurance Plus Member Network. . . we think you’ll like the results! The TOTAL INSURANCE PLUS Team 2 TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

About TIP Founded in 1998, TIP is an experienced Agency Enhancement Organization 3 TIP’s PURPOSE � To serve Independent Agencies in their pursuit of financial stability, service excellence, and marketplace access / knowledge TIP’s STRATEGY � To enhance results for Independent Agents by making services and tools available to help improve Agency revenues, operations efficiency, service delivery, and leadership TIP’s VALUES � Integrity, value, service, trust, respect. TIP is a network of successful, forward thinking insurance professionals with nearly $150, 000 in annual premium volumes TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

TIP Services In view of industry trends in revenue distribution, a key component of TIP Services is aimed to enhance revenue. 4 �REVENUE ENHANCEMENT �Access to favorable carrier contract rates; access to profit sharing through aggregation of premium volumes otherwise unavailable to a single agency �COLLECTIVE WISDOM �Access to Agency Owners in the TIP Network with years of experience handling unique risk situations and finding unique carrier markets However, we also seek ways to expand our Services to meet other �PREFERRED needs of your Agency. DISCOUNTS TIP BUSINESS CONFIDENTIAL VENDOR Version- January 24, 2018 �Access to “preferred pricing” for vendor

Value of Network Membership � Remain independent � Receive 100% commissions direct from TIP 5 Network carriers – your commissions are paid directly to you We recognize that value � Have access to TIP profit-sharing agreements drives loyalty, *subject to a loss ratio cap with reasonable annual and thus we premiums seek to provide � Minimize the risk exposure from catastrophic meaningful losses by reason of the geographic expanse benefits for Network and combined premium volumes of the TIP Members. Network � Benefit from TIP’s preferred vendor relationships � Have access to a wider array of markets, thus TIP BUSINESS CONFIDENTIAL Version- January 24, 2018 enabling you to place more accounts

Carrier Partners Aiming to provide you with access to a range of carriers for nearly any insurance need, TIP has contracts with some of the most financially stable and prestigious insurance companies world-wide. 6 TIP’s Network Carrier Portfolio currently includes the following premier carriers: Accident Fund All Risks Am. Wins Brokerage Builders Mutual Central Insurance CNA Insurance Donegal Employers Foremost Frankenmuth Mutual Guard Harford Mutual The Hartford Jackson Sumner Liberty Mutual Met Life National General Nationwide Philadelphia Safeco Insurance State Auto TIP Finance LLC* Tapco Travelers United Heartland Utica National *Special financing relationship with TIP Finance LLC through: Imperial PFS and Premium Assignment Corporation* TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

Revenue Opportunities As a TIP Network Member, you may have access to revenue gains often unavailable to a single agency -perhaps from higher contract rates, or from profit sharing with reasonable premium volume demands 7 � Enhanced profit sharing income from TIP’s carrier relationships and aggregated premium volumes – profit sharing which is often not accessible to a single agency � New revenue streams or “bonus incentives” from TIP’s expanded carrier offerings and product offerings – with more carriers being added to the TIP Network and with new offerings being developed TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

Criteria for Network Membership Our Membership Criteria is designed to strengthen the quality of the Network – thereby enhancing TIP’s overall value to you, carriers, and other Network Members. 8 A consistent record of high moral and ethical standards A stable financial company with a reputation for client service and value Reasonable business volumes with TIP Network Carriers, and a willingness to grow those volumes through selection Acceptable loss ratios which exhibit thoughtful risk analysis and underwriting TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

Costs of Network Membership Because our primary goal is to serve Network Members rather than to accumulate wealth, our costs are low. For Network Members who join now, our costs are exceptionally low! 9 �TIP entry fee --- $0 �TIP monthly Network Member fee -- - $400 �TIP add-on fees and hidden costs -- $0 � Fees are due and payable at the beginning of each month � Network Membership fees begin at the start of the month following our acceptance of your Network Membership Application TIP BUSINESS CONFIDENTIAL Version- January 24, 2018 � We prefer to handle monthly billings and

Enrollment Process � YOU prepare and submit a brief Network Membership Application �Current book of business with selected Our enrollment process is simple, yet meaningful in order to protect the overall value of Network Membership. 10 carriers, current loss ratios, other disclosures � WE will conduct a brief internal due diligence review of your Application � Network Membership will begin at the start of the month following our acceptance of your Network Membership Application � Participation in carrier appointments and annual profit sharing arrangements is governed by the schedule of each individual carrier – an earlier enrollment improves the chances for your earlier participation TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

Why You Should Consider TIP 11 � EXPANDED ACCESS TO CARRIER MARKETS. TIP helps its Network Members develop new or improved carrier relationships, often providing access to new carrier appointments with reasonable volume commitments. � INCREASED REVENUE AND PROFIT. TIP’s reputation and success has earned enhanced agreements with many Network Carriers, helping Network Members earn more revenue and more profit sharing. � NEGOTIATING LEVERAGE & LOW COST. TIP doesn’t own or manage your agency, yet you benefit from TIP’s leverage with carriers and with vendors which provide discounts for products and services. TIP doesn’t charge an entry fee, and you can terminate your TIP Membership with 15 days notice. � COLLECTIVE EXPERIENCES. The collective experiences of TIP’s Members is considerable with respect to unique risk situations and markets. . . and those experiences are TIP BUSINESS CONFIDENTIAL willingly shared across the TIP Membership. Version- January 24, 2018

TIP is not Simply an “Aggregator” � By choice, TIP IS NOT SIMPLY AN AGGREGATOR! � Our GOAL IS MEMBER SUCCESS --- not 12 shareholder returns, not executive bonuses, not fancy overhead � Our ADDED VALUE IS FOUND IN BEING A CARRIER PARTNER to help achieve growth and profitability, not simply to negotiate a differing split of a fixed or eroding portfolio � We are an “INVITATION ONLY MEMBERSHIP” --- thus protecting quality which can, if not properly maintained, be diluted by simply focusing on growth in TIP BUSINESS CONFIDENTIAL numbers Version- January 24, 2018

Potential Benefits of TIP Membership 13 The exact nature of benefits � Total Insurance Plus (TIP) has a applicable and / successful track record as a network or valuable to developer and aggregator, and it also has your Agency will vary by reason a record of negotiations yielding of the Agency’s competitive commissions, premium current book of business, volume commitments, and profit sharing strategy, loss incentives with its Carrier Network ratio performance, members. and more. The examples listed here are for � TIP is owned by Independent Agents who examples only – each is themselves value and respect legitimate and independence! As a result, TIP does NOT true, but each seek to manage, brand or otherwise may not apply in the case of all Version- January 24, 2018 control your agency in any sense. TIP BUSINESS CONFIDENTIAL Agencies.

Potential Benefits of TIP Membership 14 The exact nature of benefits TIP’s business strategy is to serve applicable and / independent agencies, not to accumulate or valuable to wealth in support of corporate overhead or your Agency will vary by reason stockholder gains. As a result, the cost of of the Agency’s Network Membership is low and the yield current book of business, is high – our entry fee is ZERO, our strategy, loss monthly membership fee is $400 fixed for ratio performance, the duration of you uninterrupted and more. The membership, and our distribution of profit examples listed sharing incentives is 90% here are for examples only – each is legitimate and As a TIP Network Member, you continue true, but each to receive 100% of your commissions may not apply in the case of all direct from TIP’s Carrier Network – paid TIP BUSINESS CONFIDENTIAL Version- January 24, 2018 Agencies. directly to you !!

Potential Benefits of TIP Membership 15 The exact nature of benefits Many Network Members may --applicable and / � be able to gain access to a wider array of or valuable to your Agency will carrier markets not otherwise available to vary by reason them currently of the Agency’s current book of � have access to Profit Sharing Incentives business, from selected carriers which do not widely strategy, loss ratio offer such Incentives to smaller agencies performance, and more. The � be more favorably viewed as to their examples listed premium volume commitments with here are for selected carriers examples only – each is � have access to preferred TIP discounts legitimate and true, but each for selected products and services helpful may not apply in to their Agency’s success the case of all TIP BUSINESS CONFIDENTIAL Version- January 24, 2018 Agencies.

FAQ’s We invite your questions about Network Membership. Included here are some Frequently Asked Questions received from other Network Member prospects. 16 � How often and when do I receive profit sharing incentives? �Most profit sharing agreements pay out annually, many based on calendar year results with payouts in March or April of the following year. As soon as TIP receives a profit sharing distribution, we promptly calculate and remit your payout without delay. � Does being a TIP Network Member restrict my activities with other networks? �We believe that working solely within the TIP Network will enhance the value of your membership, yet if there are reasons you TIP BUSINESS CONFIDENTIAL Version- January 24, 2018 prefer to work in other networks it is not

FAQ’s continued � Does TIP have a Board of Directors, and do Network Members have an opportunity for input to the organization? �The nine Owner Member Agencies serve as the Board of Directors. Through both regular and ad hoc communications, TIP Network Members have an active level of input into TIP’s strategies, programs, and services. � Do I lose my contract with a carrier when I enroll with TIP for profit sharing? �NO. The Agency Agreement between your Agency and a 17 carrier remains intact when you enroll with TIP. Solely for reporting and profit share purposes, you will be listed under TIP’s master code with any given carrier for profit share purposes. TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

FAQ’s continued � How does my participation in TIP’s Profit Sharing Agreements work? � After your agency is accepted by one of the carriers with which TIP 18 has a Profit Sharing Agreement, you are enrolled as a sub-code under that Agreement. When profit sharing distributions are received, you are then paid your share based on annual premium volumes and subject to a satisfactory loss ratio. � As an example, if TIP receives $50, 000 in profit sharing from Carrier ABC, TIP withholds 10% of that amount as a Network Manager Fee and distributes the full remainder amount (in this example that being $45, 000) to the Network Members. � If the annual premium volume of your agency is 12% of the total TIP annual premium volumes with that carrier, then you receive a 12% allocation of the TIP net annual profit sharing with that carrier, or in this example 12% times $45, 000 = $5, 400. � Profit sharing is available only for profitable books of business – currently a 70% one year Loss Ratio is our cap to be eligible for profit TIP BUSINESS CONFIDENTIAL Version- January 24, 2018 sharing, subject to annual adjustments by each individual Carrier

FAQ’s continued � When writing business with TIP Network Carriers, are commission payments made through TIP and is TIP reflected on the Declarations Pages of my policy documents? �NO, 100% of all commission payments and reports are delivered directly by the carrier to your Agency; and NO, TIP’s name and brand are invisible to your policyholders – we work fully “behind the scenes, ” it’s your business! � When can I enroll? �Network Membership Applications are now available and your Network Membership can begin in the month TIP approves your Application 19 If you have additional questions or comments, please contact any of the TIP Owner Members listed on the following slide. TIP BUSINESS CONFIDENTIAL Version- January 24, 2018

Contact Us To become a TIP Network Member, contact any of the Owner Members listed below. MARK BREEDEN Breeden Insurance Lexington, NC 336 -309 -0530 MARK RICE Callahan & Rice Insurance DON STROUD Hartsfield and Nash Fayetteville, NC 910 -484 -6171 Wake Forest, NC 919 -556 -3698 EMILY HODGES or JAY BRYAN or KEVIN STANBERRY or ALLISON WESTMORELAND JOSH CHAPPELL SCOTT STANBERRY Hodges Insurance Jennings Bryan–Chappell Insurance Stanberry Insurance Louisburg, NC Burlington, NC Sylva, NC 919 -496 -5155 336 -227 -7458 828 -586 -8926 DAVID PURINAI CHRIS PELNIK MSH Insurance Pelnik Insurance Rocky Mount, NC Cary, NC TIP BUSINESS CONFIDENTIAL 20 252 -446 -7188 919 -459 -8000 ROB SQUATRIGLIA Summit Insurance Huntersville, NC Version- January 24, 2018 704 -659 -2141