HURRICANE PREPAREDNESS

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1 HURRICANE PREPAREDNESS It cannot be said too often -- in all events your safety and the safety of your family is paramount. Err on the side of safety. Hurricane Season is June 1 through November 30. The following information will help you plan for the safety of our dealership. In addition to this plan, ensure you implement a hurricane preparation plan at home. There are different types of Hurricane warnings: Hurricane Watch: The first notification by the National Weather Service that a hurricane is a definite threat to a geographic region of the United States. Landfall is uncertain and broad geographic areas are alerted. It is normally given 36 hours before the storm is expected to strike. Hurricane Warning: Notification by the National Weather Service, normally 24 hours before the storms is expected to strike; more accurate landfall is predicted, with narrower geographic boundaries. Hurricane Alert: Notification by the National Weather Service issued when Hurricane Force winds are imminent. Categories: Hurricanes are rated into five categories. They are characterized by their sustained winds with category one being the least severe and category five being the most severe. The following scale was developed to categorize hurricanes: Saffir/Simpson Hurricane Scale Category Winds & Effects Storm Surge Examples Category Winds & Effects Storm Surge Examples mph (64-82 kt) No real damage to building structures. Damage primarily to Unanchored mobile homes, shrubbery and trees. Also, some coastal flooding and minor pier 4-5 ft

2 damage mph (83-95 kt) Some roofing material, door and window damage. Considerable damage to vegetation, mobile homes, etc. Flooding damages piers and small craft in unprotected moorings may break their moorings mph ( kt) Some structural damage to small residences and utility buildings, with a minor amount of curtainwall failures. Mobile homes are destroyed. Flooding near the coast destroys smaller structures with larger structures damaged by floating debris. Terrain may be flooded well inland mph ( kt) More extensive curtain-wall failures with some complete roof structure failure on small residences. Major erosion of beach areas. Terrain may be flooded well inland. >155 mph (135 kt) Complete roof failure on many residences and industrial buildings. Some complete building failures with small utility buildings blown over or away. Flooding causes major damage to lower floors of all structures near the shoreline. Massive evacuation of residential areas may be required. 6-8 ft 9-12 ft ft >18 ft

3 DEALERSHIP PREPARATIONS Home and cellular telephone numbers of all key personnel should be kept in a safe and secure area of the dealership. Ensure that several appropriate employees also have access to these telephone numbers. With respect to the large number of people affected, a hurricane is a catastrophe. Property damage from one hurricane can run well into the billions of dollars and the lives of several millions of people can be affected. The manner in which the clients and employees of the Company are treated following a hurricane can also create ill will, which could last for many years. Our primary concern at the time of a hurricane is employee welfare. Therefore, if the hurricane approaches on a normal workday, you will be sent home in time to reach there safely. You will better understand, as your read further, that preparing for a hurricane requires planning and work. Being personally prepared includes preparation for boarding up your dwelling or making plans to move to a safer building for the duration of the storm, having a supply of non-perishable foods, drinking water, flashlights, batteries, battery radio, filling up the gas tanks of your automobiles since a number of stations may not have electricity and cannot, therefore, pump gasoline. In addition, if time permits, we suggest you have some cash in the house since the banks may not be open for a period of time following the storm. If you wait until a storm is close, you will have to compete with thousands of frantic people for the things you need. You may have to navigate heavy traffic in gale force winds and driving rain. These conditions present a greater threat to your personal safety and, of course, take much more time than preparing under normal conditions. The peak months of hurricane activity fall between June and November. The most dangerous period of hurricane activity for an area is between late July and September. This means that the activities for hurricane preparedness should be completed by the end of May. The following activities should be completed before the start of the hurricane season: 1. Make sure that each store has a crisis coordinator. The HR Director is the second coordinator. In the event of any damage to your location, you MUST notify John Flinn and Jason Hillman immediately. 2. This version of the Disaster Recovery Team Manual should be distributed to all managers summarizing the new plans for contingency operations, which includes updated telephone list for all employees, vendors, suppliers and building contractors. 3. Take inventory and re-supply necessary items prior to June 1.

4 4. Know whether you live in an evacuation zone. If so, please advise your Plan Coordinator as to the alternative address or phone number where you can be reached in case of a catastrophe. In preparing for the hurricane season year round, the amount of work required to be carried out during the actual season itself becomes less of a burden. This will also suggest a greater sense of security and perhaps eliminate undesirable, panic-stricken situations. During the actual hurricane season itself, the following procedures should be followed: 1. If there are no storms in the immediate area, we should maintain a close watch on the National Weather Service for tropical activity that may affect the Gulf of Mexico. Continue to review and test the Disaster Recovery Manual and make necessary changes. 2. If there are tropical storms or hurricanes in the area, but they do not pose an immediate threat (this would include storms outside a 500-mile radius from our location or landfall hours from our area), the following procedures should be followed: a. Maintain a continuous watch on the National Weather Service, as well as on the local networks. b. Alert associates to the proposed plan of action. 3. If landfall is predicted in our area by the National Weather Service with a 40% confidence (or within a 200 mile radius) in the next 48 hours: a. Activate contingency plan. b. Disaster Recovery Leaders will alert the associates of the plans and expected evacuation time of the premises. c. Begin equipment moving and file preservation operation. d. Secure the building by taping the windows and moving the remaining furniture and equipment off the floor and away from the windows to prevent extensive water damage. In the event of landfall during the weekend, the Plan Coordinator will be responsible for gathering the Disaster Recovery Leaders for an office preparation. INDIVIDUAL DEPARTMENT HEAD PREPARATIONS

5 Service Directors/Managers and Store Assistants -- Please take a couple of hours and make sure the dealerships have the following items: Emergency Services Contact List -- Phone, Utilities, Sanitation, Fuel, Security, Off-site Storage, Contractors, etc. Flashlights or other portable lights with plenty of batteries -- for use at night or in confined areas. Multiple rolls of plastic bags, labels, batteries (lots of batteries), masking tape, and markers. If documents are strewn around, use the plastic bags to collect business documents on property until able to sort and review. Rolls of yellow or orange hazard tape -- to close off any hazardous areas or closed areas not for public access. Needed clean-up supplies include: Ladders Extension cords Portable power tools Flashlights Ratchet set Brooms Tool belts First aid kits All management is expected to participate in securing the dealership prior to the hurricane. Service Directors/Fixed Ops Directors are primarily responsible for implementing this plan: Because traffic and travel time can become a problem during a hurricane, stay informed and evacuate when necessary. Keep in mind the proximity of your employees in traveling to and from the dealership safely. Unplug One of the key words in all departments is to UNPLUG! Unplug everything including electrical, cable TV and phone cables. The IT Department will assist in unplugging computers. All Clear

6 When an all clear is issued after the storm, the Service Director will arrange a timetable for dealership restoring access and evaluate possible damages such as downed power lines and flooding. Determine a course of action for reopening. Video & photos should be taken to ensure proof of loss for the insurance company. The Service Director, must ensure the Service Managers, New Car Managers, and Used Car Managers have digital cameras ready to take these pictures. Looting Important: Looting is a major problem -- both during and after the storm. Please keep this in mind when securing your area (prior to the storm) and when reentering following the storm. Final Preparations As each department closes, the Service Director and the Department Manager must walk the area to inspect for anything outside that is not tied down and can become a missile under high winds. Loose items can cause major damage. * * * * * * * * ABOVE ALL, ONCE AGAIN YOU RE SAFETY AND THAT OF YOUR FAMILY IS PARAMOUNT. PLEASE ERR ON THE SIDE OF SAFETY. Before the storm: SERVICE DIRECTOR TASK LIST 1. You are the point person for the dealership. Make sure you keep all of your employees as informed as possible. 2. Make sure all departmental managers properly secure their departments. See specific task list given to each department head. 3. Make sure the F&I, Service, Parts, and Body Shop Departments have a stock of blank forms for handwritten use if the computers are down; but the dealership is able to operate. 4. Do a final walkthrough of the entire dealership to make sure all items are secured. After the storm:

7 1. Have the Used Car Manager, New Car Manager, and Service Manager (along with designated backups) ready with their digital cameras to take pictures of all damage. 2. Call in any damage to Chip Sellas at Sentry Insurance. The HR Director, Corporate Controller, and the CFO have his number. 3. Make sure the dealership is as secure as possible when evacuated and prepare for security immediately after the hurricane to prevent looting. The gates should be locked and blockers put in place. We will rely on the Service Directors and all other Managers, to provide security until we have other security in place. SECURING THE GENERAL OFFICE STORE ASSISTANT TASK LIST 1. Unplug everything. Terminals, phones, refrigerator, coffee maker, typewriters, calculators, radios, fax machine, printers, postage machine, time clock and copy machine. Move everything is off the floor. 2. Wrap tightly in plastic garbage bags and secure with tape all terminals, printers, typewriters, calculators, phones, fax machines and postage meter. 3. Place all possible important paperwork in plastic garbage bags and secure in safe, locked upper drawers of desk to avoid any water damage. 4. Remove all titles, M.S.O.s and Contracts to the Shared Accounting center. 5. Take all personal items (small appliances, pictures, etc.) home with you. 6. Remove checks and cash and give to the Shared Accounting Center for safe keeping in safe area. Complete receipts log for all checks and cash given to corporate controller and get verification signature of amount recorded. Make sure final deposit gets to bank before closing. 7. Get the in process deals from the F&I Director and send to the Shared Accounting Center. If you are going to evacuate due to what looks like a direct hit coming, consider boxing all deals in process in something like waterproof Tupperware containers to take to the Shared Accounting Center.

8 SERVICE MANAGER TASK LIST SECURING THE SERVICE DEPARTMENT 1. Locate hurricane supply chest and distribute supplies. Make sure there are blanks for handwritten RO s. 2. Service writers should notify customers to retrieve their vehicles if at all possible. Make sure customers have been notified that we have no liability. Try to move customer vehicles into the service dept. 3. Locate supplies needed to secure service office. 4. Disconnect all computer terminals and printers from electrical outlets and from computer connections in the wall. 5. Remove as many articles as possible (computers, phones, etc.) from service writer stations and store in secured office. Place all loose articles in drawers and cabinets. Do not leave any papers out. 6. Use larger trucks/vans to create wind block around service writers stations. 7. Cover all terminals, printers, & typewriters with plastic bags, and move all computer equipment up off the floors. 8. Secure all loose objects, i.e., plants, banners, signs, umbrellas, tables, etc. 9. Secure dumpster area and loose scrap parts outside. 10. Unplug everything. 11. Have technicians secure work areas. Let mechanics take home personally owned tools, if possible. Secure all toolboxes inside locked area. 12. Make sure you have a stock of RO s for handwriting in case computer is down after the storm. 13. Know where your first aid kit is. 14. Run & print a work in process listing.

9 SECURING THE PARTS DEPARTMENT PARTS MANAGER TASK LIST 1. Locate hurricane supply chest and distribute supplies, including blank parts tickets. 2. Disconnect all computer terminals and printers from electrical outlets and from computer connections in the wall. 3. Cover all terminals, printers, & typewriters with plastic bags, and move all computer equipment up off the floors. 4. Move all possible important paperwork into drawers and above ground to avoid possible water damage. 5. Cover all parts inventory with plastic where feasible. 6. Coordinate removal and storage of all flags. 7. Make sure you have a stock of parts tickets for handwriting in case computer is down after the storm. 8. Know where your first aid kit is. 9. Run & print a parts inventory listing. 10. Run & print a special order inventory listing. SECURING THE BODY SHOP BODY SHOP MANAGER TASK LIST 1. Locate hurricane supply chest and distribute supplies. 2. Service writers should notify customers to retrieve their vehicles if at all possible. Customers should be told we have no liability. 3. Secure all loose objects; (sheet metal, trash cans, signs, etc.) 4. Block in sheet metal dumpster.

10 5. Disconnect all terminals, printers, calculators and copy machine from electrical and wall connectors, then cover with plastic bags, and move all computer equipment up off the floors. 6. Use vans/trucks to block in all doors and windows. 7. Move all shop welders and torches into safe storage area. 8. Place all possible important paperwork in safe, locked desk, locked drawers and above ground level to avoid possible water damage. Leave no paperwork out. 9. Unplug everything. 10. Make sure you have a stock of RO s for handwriting in case computer is down after the storm. 11. Know where your first aid kit is. 12. Run & print a work in process listing. GENERAL SALES MANAGER TASK LIST SECURING NEW CAR/TRUCK SHOWROOM 1. Locate supplies needed to secure showroom. 2. Disconnect all computer terminals and printers from electrical outlets and from computer connections in the wall. 3. Cover all computer terminals, printers, typewriters and calculators with plastic bags, and move all computer equipment up off the floors. 4. Place all possible important papers in desk, safe or above ground level to avoid possible water damage. Do not leave any papers out on desks. 5. Check with service department to make sure all hurricane supplies have been removed before relocating any vehicles in the service department. 6. Move cars: mainly high-end vehicles into service department -- parked as tight as possible. Move the balance of inventory to the highest point of the lot and park as tightly together as possible to avoid future damage. 7. The dealership should move as many of the more pricey new vehicles as possible to the service department and showrooms and the rest to the back lot; please park tightly.

11 8. Secure all loose objects on perimeter of building, i.e., umbrella tables, plants, signs, banners, etc. 9. Unplug everything. 10. Disconnect cable and TV connections 11. Know where your first aid kit is. 12. Do not shut off main power so that outdoor lights will remain on for security reasons. 13. Run & print a listing of all F&I deals in progress. 14. Run & print a vehicle inventory listing. PRE OWNED MANAGER TASK LIST SECURING Pre Owned CAR/TRUCK SHOWROOM 1. Locate supplies needed to secure office. 2. Disconnect all computer terminals and printers from electrical outlets and from computer connections in the wall. 3. Cover all computer terminals, printers, typewriters and calculators with plastic bags, and move all computer equipment up off the floors. 4. Place all possible important papers in desk, safe or above ground level to avoid possible water damage. Make sure no papers are left out on desks. 5. Check with service department to make sure all hurricane supplies have been removed before relocating any vehicles in the service department. 6. Move cars: mainly high-end vehicles into the detail dept and body shop and park as tight as possible. Move the balance of inventory to the back lot. These moves should be made in conjunction with new car department. All inventory parked outside should be packed as tight as possible to increase space and lower risk of future damage. 7. Secure all loose objects on perimeter of building, i.e., umbrella tables, plants, signs, banners, etc. 8. Unplug everything.

12 9. Know where your first aid kit is. 10. Do not shut off main power so that outdoor lights will remain on for security reasons. 11. Run & print a listing of all F&I deals in progress. 12. Run & print a vehicle inventory listing. FINANCE DIRECTOR TASK LIST SECURING THE FINANCIAL SERVICES DEPARTMENT 1. Need a package put together to operate without power; along with solar powered or battery powered calculators. Blanks for handwriting including: - Contracts - Credit Apps - Trade Appraisal - Menus - Odometer Statements - Worksheets - and all other info possibly needed 2. Disconnect all computer terminals and printers from electrical outlets and from computer connections in the wall. 3. Cover all terminals, printers, & typewriters with plastic bags, and move all computer equipment up off the floors. 4. Turn in all in process deals to the Shared Accounting Center for securing before closing up. 5. Know where the first aid kit is. SHARED ACCOUNTING CENTER

13 1. Need a package put together to operate without power; along with solar powered or battery powered calculators. Blanks for handwriting including: - Contracts - Credit Apps - Trade Appraisal - Menus - Odometer Statements - Worksheets - and all other info possibly needed 2. Disconnect all computer terminals and printers from electrical outlets and from computer connections in the wall. 3. Cover all terminals, printers, & typewriters with plastic bags, and move all computer equipment up off the floors and into garage area. 4. Create shelf space for affected stores paperwork and all deals, create a log of what is received and put in designated area. 5. Run & print a listing of all F&I deals in progress. 6. Run & print a vehicle inventory listing. 7. Know where the first aid kit is.

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