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SIGNATURE TECHNOLOGY GROUP <br />Data Center Solutions Professionals <br />Initial stocking and reorder levels are set at a base line determined by equipment population and <br />dynamically adjusted continually based on ongoing usage statistics. Once inventory levels for a part fall <br />below the reorder point threshold, a reorder is placed automatically. This process saves time and <br />prevents the delays and errors that can occur with manual purchasing processes. <br />As a result of the diversity of equipment types available to customers in today's environment, STG has <br />established relationships with many OEM's, manufacturers, VAR's, distributors, and parts vendors to <br />purchase replacement parts or machines from. Who STG purchases from is dependent upon the age of <br />the equipment and whether or not it is still in production or still supported by the OEM. Most parts <br />purchases are from the OEMs as long as the part is still available from them. <br />STG utilizes several strategic parts stocking locations across the US with our main warehousing and <br />testing facilities located in Phoenix, Arizona. Parts are also stocked on every customer site based on <br />Service Level Agreements, equipment population, equipment configuration, equipment model types as <br />well as data on historical failure rates of parts where it is available. Management and maintenance of <br />STG inventories are enhanced by the use of Service Parts Planning software tools integrated with our <br />suite of automated systems. <br />Parts movement: <br />EMERGENCY <br />For same day or next day requirements STG uses the following services depending on the <br />severity: <br />UPS Red <br />Federal Express P1 <br />Next Flight Out (STG is an authorized shipper by the TSA and there is a flight every 30 minutes <br />from Phoenix to one of the nearby LA airports) <br />Mach 1 Air Freight <br />I-Cat Air Freight <br />Courier Services (Depending on Location) <br />Air Charter Services (Depending on Location) <br />EXPEDITED <br />For delivery times required within 1 to 3 days STG uses UPS or Federal Express expedited <br />services. <br />STANDARD <br />For normal stock parts replenishment requirements of 3 to S day delivery times, STG utilizes <br />UPS, Federal Express or USPS ground services. <br />Page 9 of 27 <br />25C-63 <br />Exhibit B