ACTIVE MEMBERSHIP MEETING Tuesday October 13 2009 9

ACTIVE MEMBERSHIP MEETING Tuesday, October 13, 2009 9: 00 am – 12: 00 pm

RANDALL GROGER Chairman, IAM RKG Associates

WHY CHANGE IAM’s MEMBERSHIP CATEGORIES? • Current governing or “Active” category excludes the majority of IAM’s commercially oriented members: – 6% of total membership – Less than 30% of dues – Membership fees that are 600% higher than the “next” category – Less than 7% of total association growth over the past 10 years – Under DP 3, the number could drop significantly

WHY CHANGE MEMBERSHIP CATEGORIES? • IAM Member Needs Survey data strongly supports: – 70% of all respondents are “very” or “somewhat” interested in such a change – Only 26% of Associate Members and 12% of Active Members indicated no interest in changing the governing category

WHAT ARE THE BENEFITS OF CHANGE? • Creates a Broad Financial and Governing Base – Builds IAM recognition as an industry leader and expands our global presence – All current Associate Members can choose their membership level based on interest and benefits

WHAT ARE THE BENEFITS OF CHANGE? – Growth at the governing membership level will have a positive effect on the revenue base derived from fees and will impact the magnitude of future dues adjustments for all categories – Just 40 Associate Members converting up to governing level would increase net association dues revenue by $100, 000 (under the current dues structure)

WHAT IS THE IMPACT ON YOU? • Creates an opportunity to invest energy and resources more creatively and responsibly for IAM’s future growth • Establishes a new baseline for IAM leadership to impact and provide value to a varied base of “governing” members

WHAT IS THE IMPACT ON YOU? • The IAM industry leadership and focus on Military Personal Property Program will remain strong! • Do. D continues to be the single largest customer in the world and draws heavy participation from IAM members. This will not change!

Chairman’s Report I urge you to approve the By-Law changes, as presented, aimed at expanding the governing base of the Association Thank you!

REPORTS OF STANDING AND AD HOC COMMITTEES

DOUG FINKE Commercial Affairs Sterling International

COMMERCIAL AFFAIRS • Importer Security Filing “ 10+2” – Enforcement phase by CBP will commence on January 26, 2010 – Regulation profoundly impacts all U. S. importers and their trading partners overseas – Special IAM ANNUAL MEETING Session will provide ANSWERS YOU NEED TO KNOW • Tuesday, October 13 at 1: 30 pm

COMMERCIAL AFFAIRS • Receivable Protection Program (RPP) – Current membership - 100 participants – Program is member-driven and focused on signing additional companies in 2009 -10 in order to yield higher annual claim settlement amounts – Special IAM ANNUAL MEETING Session will provide ANSWERS YOU NEED TO KNOW • Monday, October 12 at 3: 30 pm

COMMERCIAL AFFAIRS • Shipper’s Guide – New online template being designed by IAM’s new Programs Manager, Brian Limperopulos – Current Custom’s information and regulations were solicited prior to Annual Meeting – Information will be updated on a regular basis and posted to the IAM website for both consumer and member availability

COMMERCIAL AFFAIRS • EIN: Proposed Elimination of Social Security numbers for U. S. Shipper Export – New U. S. Census Bureau ruling mandating elimination of the Social Security Number in the Automated Export System (AES) as a result of the Privacy Act of 1974 – Number to be obtained from Internal Revenue Service and submitted via AES in order to export household effects

COMMERCIAL AFFAIRS • EIN: Proposed Elimination of Social Security Numbers for U. S. Shipper Export – IAM General Counsel Alan F. Wohlstetter submitted official comment to U. S. Census Bureau regarding discriminatory practice and administrative burden – IAM recommendation to use the passport number to satisfy the Privacy Act requirement

COMMERCIAL AFFAIRS • Knowledge Lab – First year ever, IAM is conducting specific information sessions designed to educate the global membership • Variety of topics from managing cashflow more effectively to new programs and regulations – 12 Knowledge Lab sessions planned for this year’s Annual Meeting

CHARLES WHITE Director of Government & Military Relations, IAM

The last year has been a wild ride!!!! • November 19, 2008 “Families First” begins moving shipments between 17 installations • February 26, 2009 “DP 3” made available worldwide • 2009 Peak season DP 3 Issues: – – – – DPS Performance Issues Short Fuse shipment Issues Webbots SIT issues Invoicing/PPSO invoice approval/accessorial approvals Claims Module issues CSS Response Rate

Where do we stand right now? • Currently running two programs side by side – TOPS & DP 3. This will continue longer than previously envisioned - IS 10 rates due 11/10/09. IW 10…. probably! • Overall - 15% of all DOD shipments moved since February 2009 have moved through DP 3. Currently 12% of total traffic moving thru DPS • CSS – CRITICAL!!! Few TSPs Statistically Valid! • Short Fuse shipments & PPM scheduled to come into DPS – December 2009 • Money is critical! FY 10 money became available Oct 1. This will be used for DPS hardware upgrades and development of SCRs. • No Open Season in 2009 for 2010 cycles

New Players in the game! • Gen Schwartz out at Transcom…. in as Chief of the Air Force • Gen Mc. Nabb new Transcom Commander • Vice Admiral Harnitchek new Transcom Deputy Commander – Direct oversight of DP 3/DPS • Ms Marge Leclaire – Transcom Director of AQ……. Ms Virginia Williamson (Transcom J 6) retired Ms Patricia Young promoted – now at AF HQ • Major Gen Hodge – SDDC Commander for just one year • LTC Carberry to retire – replaced by Col Mike Miller • Lt. Col Bradley set to retire August 1, 2010 but may take terminal leave as early as April, 2010 • New Leadership……New philosophy?

What Does the Future Hold? • DOD looking to move at least 75% of traffic thru DPS by 2010 Peak season (May) • May be too late for many Business Rule (BR) changes due to Federal Register Process. SDDC want to move some BR back to the DP 3 Solicitations (Int’l Tender & 400 NG) • New leadership is milestone vs. date driven • Is some form of Outsourcing of the Personal Property on the horizon?

Contact info Chuck White Director of Government & Military Relations Charles. White@iamovers. org 703 -317 -9950

TERRY HEAD President, IAM

ASSOCIATION NAME CHANGE • “International Association of Movers” – Name change was effective January 1, 2009 • Full membership required to adopt new logo usage by December 31, 2009 www. IAMovers. orglogo. html

IAM “MEMBER NEEDS SURVEY” – Contracted Mc. Kinley Marketing Group to conduct a full survey and analysis of member perception and to solicit input on needed benefits and surveys – Broad survey distribution to more than 2000 members with a 30% response rate – Survey data and findings were published in the July/August ‘ 09 issue of The Portal

MEMBERSHIP • As of October 1, 2009: – 127 Active Members – 453 U. S. Associate Members – 1, 517 Overseas Associate Members – 1 Student Member – 4 Industry Veteran Members – 103 Young Professionals (YP-35) Members • TOTAL - 2, 205 Members in 170 countries

PROPOSED BY-LAW REVISIONS • Notice provided to the Membership by email and through The Portal magazine regarding: – Article IV (Membership), Section 1 • Reclassification and renaming of Active and Associate Members to “Governing” and “Core” • Proposal to add a new category for Suppliers • Extend participation in YP-35 until age 40, if joined by age 35

FINANCIAL • Total Revenues for FY 08/09: $3, 207, 455 – Reflects a decrease of $340, 702 over FY 07/08 • Total Expenses for FY 08/09: $3, 137, 247 – Reflects a decrease of $591, 547 over FY 07/08 • Contribution to Members’ Equity: $70, 198 – Total Unrestricted Net Assets - $2, 037, 304

MILITARY & GOVERNMENT REPRESENTATION • Charles (Chuck) White, IAM Director of Military and Government Relations – Representation of IAM Members with government and military organizations – Significantly increased and strengthened IAM’s relationships with a variety of Do. D stakeholders, GSA & State Department – IAM has become the voice of the Industry on military issues

DOD PERSONAL PROPERTY PROGRAM • Key Issues for the Future: – Best Value Acquisition – TSP scores/validity – Reduction of Carriers/Capacity – Do. D / Industry Communications – Managed Carriers – Fit into IAM model? – Outsourcing

GOVERNMENT & CONGRESSIONAL • General Services Administration: – Regular meetings between IAM and divisions of GSA that manage CHAMPS and the Transportation Audits Division • Congressional & Government Representation: – Jim Wise, PACE Government Relations, continues to hold responsibility to monitor, promote and advocate in all federal legislation, regulations and programs that could impact IAM members

INTERNATIONAL SHIPPERS ASSOCIATION (ISA) – IAM staff provide administrative services • Mario Rizzo, ISA Consultant – ISA maintains good relations with TAAFLO & TPAFBO – ISA Board works on a number of issues related to military shipments in Atlantic & Pacific trade lanes – Two military shipping agents Pasha and NAS – 2008 “Patronage Dividend” - $45, 000 – 124 TSPs – Current Membership Total: 202 http: //www. isaship. org/

YOUNG PROFESSIONALS (YP-35) GROUP • Stephan Geurts, Jr. , Chairman • Paula Colmenares, Vice Chair – Current YP-35 Membership: 103 – 2009 marks first year that YP-35 Management Board participated at the Leadership Meeting of EXECOM & AMMB – 2009 marks first year that YP-35 hosted a “Welcome Reception” on opening night

YOUNG PROFESSIONALS (YP-35) GROUP – 2009 marks first year that YP-35 hosted a special presentation session with representatives from The World Bank and the Inter-American Development Bank – YP-35 supports the promotional fundraising efforts for the IAM Scholastic Assistance Program and the Alan F. Wohlstetter Scholarship Fund http: //www. yp-35. org/

IAM SCHOLASTIC ASSISTANCE PROGRAM • Heather Engel, President AFWSF • Jackie Agner, Secretary – 2009 marks first year that a special fundraising committee was established • Sandra Rowe Maier, Chairman • In honor of Alan F. Wolhstetter’s retirement more than $100, 000 was raised in recognition – 5 awards of $4, 000 each this year • 3 students in U. S. and 2 international

IAM PROGRAMS • Brian Limperopulos, IAM Programs Manager – Receivable Protection Program (RPP) – Shipper’s Guides – Customs and Security Issues • ISF“ 10+2” Special Session; Tuesday, Oct. 13 - 1: 30 pm Guest Speakers: – Christopher Dow, Chief CBP Officer, U. S. Customs and Border Protection – Patrick Gallagher, Gallagher Transport International – Doug Finke, Sterling International

TECHNOLOGY PARTNERSHIP • Gordon Keene, Chairman, Technology and Communications Committee – Active pursuit and oversight to develop Standards for the American National Standards Institute (ANSI) as an accredited Standards Developer – Overall objective to pursue common global Standards to ensure level playing field and common standards for application and development of technology in the Industry

IAM “HALL OF HONOR” • John Day, Chairman, Ho. H Selection Committee – Established to permanently enshrine individuals, companies, products or services that have made outstanding contributions to the association or the moving, transportation, forwarding or relocation industries. – 13 Inductees for 2009 • Call for 2010 Nominations by end of year • Revisions being made to Nomination Form • Revisions being made to Selection Committee and guidelines for final scoring

IAM PUBLICATIONS AND WEB SITE(S) • Janet Seely, IAM Director of Communications and Member Engagement – Oversight for all organizational communications • The Portal Magazine • Electronic Newsletters (e-Portals and e-Blast) • IAM website(s) – New site planned for 2010; more than just a point of info – Transactional focus to benefit both consumers and members – Fully electronic meeting format for the future • IAM Job Board

FOR FUTURE IAM ANNUAL MEETINGS – 2010: San Diego, CA • Manchester Grand Hotel; September 29 -October 2 – 2011: Denver, CO • Denver Hyatt Regency; September 12 -15 – 2012: Washington, D. C. • Gaylord National Resort and Convention Center; National Harbor, MD; October 10 -13 IAM “ 50 th” Golden Anniversary

Thank You for Attending ACTIVE MEMBERSHIP MEETING Tuesday, October 13, 2009 9: 00 am – 12: 00 pm