Direct Filing Solutions Executive Proposal 800-Flowers Inc Executive Proposal 800-Flowers Inc Executive Proposal 800-Flowers Inc June 18, 2009 Formal Proposal

Contents Background Company XYZ Package Highlights Net Savings Calculation Process Company XYZ Entry Filing Costs TRG Direct Filing Cost Savings Net Savings ISF Cost Savings Accumulated Net Savings Bottom Line Savings Addendum Systems Integrity References About TRG

Background

Company XYZ Package Highlights

Net Savings Calculation Process

Company XYZ Entry Filing Costs

TRG Direct Filing Cost Savings

Net Savings

ISF Cost Savings

Accumulated Net Savings

Bottom Line Savings

Addendum

Systems Integrity

References

About TRG

Company XYZ files 1,500 entries with U.S. Customs annually. The current average broker cost associated with Customs entry filing is $95 per entry. An ISF broker fee is assumed at $35 per entry. Background

Company XYZ files 1,500 entries with U.S. Customs annually.

The current average broker cost associated with Customs entry filing is $95 per entry.

An ISF broker fee is assumed at $35 per entry.

Volume Price Package: Entry Fee $20 $1,200 Annual Fee Training & Testing: 1 Day On-site $2,000 Start Up Fee Company XYZ Package Highlights ISF Package: ISF Fee $3 No Annual Fee

Volume Price Package:

Entry Fee $20

$1,200 Annual Fee

Training & Testing:

1 Day On-site

$2,000 Start Up Fee

ISF Package:

ISF Fee $3

No Annual Fee

TRG Direct Accumulated Net Savings 5 Step Calculation Process Determining Gross Entry Fees Filing Cost Savings Calculation Net Savings - Primary Focus on Staffing Considerations 4. ISF Savings 5. Accumulated Net Savings

5 Step Calculation Process

Determining Gross Entry Fees

Filing Cost Savings Calculation

Net Savings - Primary Focus on Staffing Considerations

4. ISF Savings

5. Accumulated Net Savings

1.Company XYZ Gross Fees

2. TRG Direct Filing Cost Savings The entry numbers provided by Company XYZ are used here to calculate the projected entry cost savings using TRG Direct. Using the broker fee of $95 from the previous chart you can see the annual savings using TRG Direct for the easy entries, total entries and any future growth.

3. Net Savings Calculation * Primary focus on staffing considerations with the following assumptions: Average daily entries based on 240 working days in 1 year, Average daily time spent based on 10-20 min per entry, 5% deduction on daily time for decreased broker management, Average cost of an experienced full time employee $48,687. This chart is based on consumption entries only. Filing 1,500 entries annually, Company XYZ would need 1 employee to dedicate 30% of daily hours to TRG Direct. However, net savings is still over $97,000 annually.

* Primary focus on staffing considerations with the following assumptions:

Average daily entries based on 240 working days in 1 year,

Average daily time spent based on 10-20 min per entry,

5% deduction on daily time for decreased broker management,

Average cost of an experienced full time employee $48,687.

This chart is based on consumption entries only. Filing 1,500 entries annually, Company XYZ would need 1 employee to dedicate 30% of daily hours to TRG Direct. However, net savings is still over $97,000 annually.

4. TRG Direct ISF Cost Savings The savings for ISF are demonstrated here. As a TRG Direct customer you will receive an ISF fee of $3/transaction.

5. Accumulated Net Savings Calculation This chart is based on a 5% annual increase in import entries. Filing 1,500 entries the first year and progressing to 1,823 entries in year 5, Company XYZ could potentially see an accumulated net savings of $804,800.

Filing 1,500 Customs entries with TRG Direct, Company XYZ would see: A per entry savings of $75, An annual direct filing up front savings of $111,300, Direct filing net savings of $97,534 after staffing considerations, An annual ISF savings of $48,000 An accumulated 5 year net savings of $804,800. Conclusion

Filing 1,500 Customs entries with TRG Direct, Company XYZ would see:

A per entry savings of $75,

An annual direct filing up front savings of $111,300,

Direct filing net savings of $97,534 after staffing considerations,

An annual ISF savings of $48,000

An accumulated 5 year net savings of $804,800.

Addendum – Systems Integrity In a post 9/11 world, TRG Direct safeguards and backs up our systems to ensure that you never experience an outage or inability to access the direct filing system. IBM hardware based, Multiple fault tolerant storage systems, Secured data center with encrypted off-site storage, 24/7 on-site technician, SSL encryption, Customer records maintained for 7 yrs (per U.S. Customs mandate).

In a post 9/11 world, TRG Direct safeguards and backs up our systems to ensure that you never experience an outage or inability to access the direct filing system.

IBM hardware based,

Multiple fault tolerant storage systems,

Secured data center with encrypted off-site storage,

24/7 on-site technician,

SSL encryption,

Customer records maintained for 7 yrs (per U.S. Customs mandate).

Addendum – References Charlie Gabbert Atalanta Corporation Elizabeth, NJ 908-351-8000 x 263 Zenia Silvestre Greenball Corporation Long Beach, CA 310-669-2626 x248 Lynn McGowan Hamricks Gaffney, SC 864.487.7505x1510 Bill Royal Vineyard Brands Birmingham, AL 205.980.8802x3106 Sue Widder Fibertex Teaneck, NJ 201.862.1920 Janette Edmunds KIC Holdings Vancouver, WA 360.823.4460