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CRMT WELDING SERVICES, INC

New Engineering Solutions to the Industry

INVERSION $ 750.000
HIGHLIGHTS Management team composed of renowned pioneers in display technology Licensing commitments from leading different industrial sectors Extremely low cost to organize using strong leadership and labor experience Highly differentiated ser ices by inno ation and !uality assurance "deal stage of de elopment lifecycle Large #1 million mar$et growing rapidly

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CRMT WELDING SERVICES, INC

%his &ocument is a 'usiness Plan and does not constitute an offer to sell or a solicitation to purchase( %his 'usiness Plan) *the plan*) is confidential and contains proprietary information including trade secrets of +,M% -elding .er ices) "nc( /either the Plan nor any of the information contained in the plan may be reproduced or disclosed to any person under any circumstances without the express written permission of +,M% -elding .er ices) "nc(

Daniela Romasan Liliana Melo Craig Cusanelli Amin Taurani

Professor Claudia Baldonedo AMM 150.5065 May 29 200!

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TABLE OF CONTENTS

"( ""( """( "3( 3( 3"( 3""( 3"""( "7( 7( 7"( 7""(

Executi e .ummary +ompany En ironmental and "ndustry 2nalysis Products and .er ices Mar$eting ,esearch and E aluation Manufacturing and 5perations Plan Management %eam %imeline +ritical ,is$s and 2ssumptions 'enefits to the +ommunity 9inancial Plan 2ppendices

Pag( 0 1 7 4 11 16 17 14 08 00 00 0:

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BUSINESS PLAN PROJECT CRMT Indus !"#$ S%!&"'%s, In'.

I.

Executive Summary +,M% "ndustrial .er ices) "nc( will be formed as a consulting and training firm specializing in

welding engineering ser ices( 2 home office in Long "sland +ity) /; will be established the first year of operations to reduce start up costs( %he founders of the firm are professional engineers and managers with more than 0: years of progressi e and responsible experience( "nitial start up costs amount to #7:8)888( 5f this total) #:1:)888 is re!uired for start up expenses while the balance is to be placed in the company accounts as wor$ing capital( "ts founders) &aniela ,omasan) Liliana Melo) +raig +usanelli) and 2min %aur will pro ided an initial in estment of #0:)888 each one towards start<up costs( Pro=ected sales and profits for the first three years of operation are summarized below> YEAR 0884 088@ 0818 Highlights:
$1,400,000.00 $1,200,000.00 $1,000,000.00 $800,000.00 $600,000.00 $400,000.00 $200,000.00 $0.00 Sales Expenses Net Profit

SALES ($) #146)888(88 #44@)088(88 #1)314)888(88

PROFITS ($) #:6)708(88 #48)804(88 #1:8)648(88

SALES/PROFITS (%) 4(88? @(88? 11(88?

200"

2009

2010

%he company will specialize in pro iding four dimensional ser ices> e!uipment rental) material testing) engineering consulting in !uality and welding) and welding training A-elding .choolB( .tate<of<the art
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analysis and design tools will be an integral part of the business plan( "mplementation of !uality management under ".5 @888 will pro ide a focus for customer needs( .e en scorecards are used to co er the processes in the !uality system of +,M% "ndustrial .er ices) "nc(> Cuality system implementation Leadership and management re iew ,esource management &esign and de elopment implementation .upplier management .er ice Pro ision planning and control &ocument and record control . . O!"ective# a$% G&a'#( a( .ales of # 146)888 the first year) approaching # 1)314)888 at the end of the three years( b( 2chie e /ew ;or$ +ertification to be listed in the &irectory of +ertified Minority and -omen< 5wned 'usiness Enterprises in order to offer ser ices to the state agencies and contractors statewide at the end first year of operations( c( 'ecome one of the contractors of inspection tas$ of M%2 pro=ects A7 train Extension) 9ulton .treet %ransit +enter) and .econd 2 enue .ubway D .2.B at the end second year of operation( d( Ha e an impeccable reputation in the engineering) inspection) training and materials testing industry in /ew ;or$ +ity at the end of second year of operation( e( 2chie e 188? of mar$et alue at the end of the three years of operations( f( "ncrease gross margin to 78? by the third year of operations( g( "mplement a !uality management system under ".5 @888 at the end of the second year( h( "ncrease its installed capacity to :8?( 2t the end of the three years( i( =( "ncrease its labor positions to :8 ? at the end of three year of operations( Establish the le el of the laboratoryEs performance at the end of second year of operation appropriate to the indi idualEs degree of responsibility( .). *i##i&$( +,M% "ndustrial .er ices) "nc( is a materials solutions company that pro ides superior alue in testing) consulting) training) problem sol ing) and design F engineering ser ices( +,M% incorporates state of the
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$( Ensure that all personnel are trained to a le el of familiarity with the !uality management system

art technology and e!uipment to pro ide highly specialized testing procedures and training( "t is dedicated to ser ing the construction sector) as well as academic and go ernment institutions through> 2wareness of modern scientific and engineering problems applied in -elding and /on &estructi e %esting field( +reation of leading edge) cost<effecti e technologies( 5ptimal selection of new and emerging technologies( +,M% clients are pro ided with the expertise and experience needed to $eep their pro=ects on trac$( "t is its duty to ensure that each customer is treated with respect( +,M% team is committed to deli ering timely) high<!uality solutions to customer needs) and is dri en by professionalism) integrity) and reliability( .+. ,ey# &- Succe##( a( Pro ide professional !uality ser ices on time and on budget( b( &e elop a follow<up strategy to gauge performance with all clients( c( "mplement and maintain a !uality control and assurance policy( d( Ha e professional) integral) and honest team members( e( Ha e a high compromise toward the ac!uisition of new technologies( f( Gi e preparation) experience) and training to the team members in order to insure the integrity of ser ices( g( Ensure ser ices satisfy customer re!uirements h( Maintain the standards which ha e been successful in achie ing i( =( Eliminating complexity and reducing processing time 9ocus on attention on !uality

$( ,eduction of operating costs and impro ement of efficiency ... *ar/et O00&rtu$ity( +M,% "ndustrial .er ices) "nc has the opportunity to become the second welding school in /ew ;or$ +ity at the end of the second year of operations since /ew ;or$ +ity only has one institute of this $ind of technical education( +,M% location will be a good point to recruit new student in welding area because industrial wor$ers and companies are interested on impro ing their s$ills to get better =obs in construction industry( "n the same way) consulting ser ices are increasing in /ew ;or$ +ity due to its urban growth and new in estment in construction industry( "n addition) the hea y construction side is demanding in the /ew ;or$ mar$et due to mass transit) en ironmental) and roadway pro=ects( %he mar$etEs relati e strength is e ident as well in the healthier

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re enue and construction acti ity reported by respondents to /ew ;or$ +onstructionEs annual %op +ontractors sur ey( "n the same way) certain sectors) especially public and institutional) are offering a balanced mar$et of opportunities for e eryone who is in ol ed in construction pro=ects( 2lso) pri ate pro=ects such as educational) institutional) and commercial construction are generating considerable mo ement( 9or instance) Manhattan sector) where cost of pro=ects is around #4:8 million) has arious building pro=ects> :0<story /ew ;or$ %imes head!uarters tower) the 0(1<million<s!<ft 9reedom %ower at the -orld %rade +enter A#0(1 billionBH and the 'an$ of 2merica %ower in Midtown A#1 billionB( 2lso) new baseball stadiums are already under construction in the 'ronx for the /ew ;or$ ;an$ees and in Cueens for the /ew ;or$ Mets( 5therwise) public wor$s pro=ects are also on the agenda around /ew ;or$> the #1(06 billion +roton -ater %reatment Plant in the 'ronx and ma=or mass transit pro=ects that include the Metropolitan %ransportation 2uthorityEs #1(3 billion East .ide 2ccess program) the #3(4 billion first leg for the .econd 2 enue .ubway) and the #0(1 billion extension of the /o( 7 line from %imes .!uare to the Iacob J( Ia its +on ention +enter( 2s a result) /ew ;or$ +ity construction employment is growing because of these steady pro=ects under de elopment( Iob openings from the pro=ected increase in construction acti ity in /ew ;or$ +ity should be se eral thousand positions a ailable in coming years considering that 38)888 /;+ construction wor$ers are nearing retirement( 1ata Summary( Manufacturing) +onstruction and Mining is a #3 trillion industry) 1K3 L. G&P( -elding is a #36(1 billion industry( Labor represented more than 78? of welding<relate expenditures) #00(6 billion in 0888( %here are more than :88)888 welders wor$ing in L.( %he a erage age of welders in todayEs wor$force is :6( "t is estimated that there will be a shortage of more than 088)888 welders by 0818( %his year) :8)888 welders will lea e the industry while only 0:)888 students begin their welding education( .2. Fi$a$cia' 1ata( %he +ompany is see$ing # 7:8)888 in first round financing) in the form of cash) to fund the four lines of ser ices( %he +ompany intends to use the proceeds from e!uity in estments as follows> 3#e &- Pr&cee%# GROSS OFFERI4G LE.. E.%"M2%E& 599E,"/G E7PE/.E. 2/& +5MM".."5/. $5267666 8

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/E% P,5+EE&. PL2//E& L.E. 8APITAL E9PE41IT3RES +omputer e!uipment Purchased software y licenses 9urniture and 9ixtures ,emodeling and &ecorating -elding and %esting E!uipment %otal proceeds for capital expenditures :OR,I4G 8APITAL .alaries and wages Expenses 2d ertising ,eser e %otal proceeds for wor$ing capital and reser e %otal Lses II. 8&m0a$y

#7:8)888 # 18)888 #:)888 # 08)888 # 38)888 # 6:8)888 # :1:)888 # 188)888 # :8)888 # 08)888 # 1:)888 # 03:)888 #7:8)888

). . Stateme$t &- Pur0&#e( +,M% "ndustrial .er ices) "nc( a limited liability company established in 0887 is a company that pro ides specialized ser ices of testing and industrial ser ices for hea y industrial) shipbuilding) steel building
erection) pipe welding) fabrication) and construction and is located at 3316 Cueen 'oule ard) Long "sland +ity)

/; 11181<1381( %he company is see$ing growth capital in the amount of #7:8)888 for the purpose of purchasing new and more modern e!uipment and for training existing personnel in the use of that new e!uipment( ).). 8&m0a$y O;$er#<i0> +,M% "ndustrial .er ices will be created as a limited<liability company( %he company will be pri ately owned by &aniela ,omasan) Liliana Melo) +raig +usanelli) and 2min %aur( ).+. Start=u0 Summary( "ts start<up expenses amount to #0:)888) which allows for initial legal expenses) licenses) permits) stationary) specialty software) office e!uipment) and furniture( "n addition to these start<up costs) an initial in estment of #7:8)888 will be placed in the company accounts to purchase new and more modern e!uipment and for training existing personnel in the use of that new e!uipment Asee 2ppendix 1B( &aniela ,omasan) Liliana Melo) +raig +usanelli) and 2min %aurani will contribute #0:)888 each one towards the o erall start<up costs( )... 8&m0a$y L&cati&$ a$% Faci'itie#(

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+,M% "ndustrial .er ices will establish a home office in Long "sland +ity) /;+ in order to reduce start<up costs( %he office space is estimated to be 1:8 s!uare feet( "t will be installing a dedicated fax line as well as a high<speed "nternet connection( 2n interacti e website will also be de eloped which will ser e as a mar$eting tool( %he domain name of *crmt<ser ices(com* has already been reser ed( +,M% "ndustrial .er ices) "nc( will rent office space on located at 3316 Cueen 'oule ard) Long "sland +ity) /; 11181<1381( %he office space is rented and will accommodate the necessary office e!uipment such as computers) fax machine) photo copier) and other engineering e!uipment as well as the ad=usting of wor$ areas such as /&% Laboratory) -arehouse) +lassroom) -elding .chool) and administrati e area A.ee appendix 0B( %his facility will re!uire an estimated #:8)888 to reno ate in a style that is aesthetically pleasing to the clients as well as the owners( III. E$vir&$me$ta' a$% I$%u#try A$a'y#i# "n general) the indoor welding industry and engineering consulting ser ices is a large industry not only in /ew ;or$ +ity) but also in entire Lnited .tates( 2ccording to the +ensus 0880) 031 welding establishments exist in /ew ;or$ +ity( "ts dollar alue of business done is 3)7@@):40)888 with an annual payroll of 7@6)817)888 and the amount of paid Employees is 11)104( /owadays) welding application plays a $ey role in the manufacturing challenge and is $ey contributor to> hea y manufacturing) light manufacturing) construction) transportation) electronicKmedical) maintenance F repair) and energy( 2ccording to 2-. A2merican -elding .ocietyB) welding industry status is based on> -elding is iewed as Mdar$ F dirtyN %he critical role of welding is not fully appreciated in all corporate and go ernment offices( High schools phasing out welding programs and discouraging careers despite annual earnings potential of #38)888 < #18)888( 1K0 of L. industries report difficulties locating !ualified welders( %he L. infrastructure is aging( .hortage MbarrierN resulting in fewer competiti e welding techni!ues) less producti ity and outsourcing to foreign mar$ets( /atural disaster prone areas ha e immediate need for welders to !uic$ly rebuild homes and cities( %he typical salary for a Pipe 9itter in /ew ;or$ +ity is #::)807(

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2s a result of this status of this industry) the future of welding industry is based on its growing needs> 2d ancing manufacturing technology creates more uses for welding in the wor$place and is expanding opportunities( "ncreased emphasis on certification) which ensures !uality( +omputer s$ills are re!uired for welding professionals responsible for programming welding robots) lasers) and systems( /ew materials are creating a greater need for a highly educated and inno ati e welder wor$force( 2utomation reinforces the need for s$illed machine operators( L. industries face foreign competition and re!uire competiti e welding techni!ues and s$illed operators to stay iable( .$illed welders are needed to maintain the +ountryEs aging infrastructure( %he owners of +,M% "ndustrial .er ices) "nc( belie e strongly that the creation of +,M% will support the welding growth and its strengthening of its technology by the training( 2lso) this company will help the general industry impro e the concept of ser ice pre ision by the new concept based on the customer needs( I>. Service# 1e#cri0ti&$( +,M% will be is an independent company pro iding testing and industrial ser ices in the hea y
industrial) shipbuilding) steel building erection) pipe welding) fabrication) construction and other industries( +,M%

will offer e!uipment rental) material testing and engineering consulting) and ha e a school of welding( -ith the continued influences of *cost reduction*) +,M% will stri e to do its part in pro iding the highest le el of !uality at the lowest possible price( +,M% "ndustrial .er ices offers complete structural engineering ser ices( "t will focus on construction and general metal mechanical industry with the following OLse and 5ccupanciesO> a( E!uipment ,ental b( Material %esting Laboratory c( Engineering +onsulting in Cuality and -elding d( .chool of -elding

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8R*T SER>I8E LI4ES Material %esting Laboratory


Engineering +onsulting in Cuality and -elding

E!uipment ,ental

.chool of -elding

-elding E!uipment

%esting

"nstructions and +lasses < .eminaries

/on &estructi e E!uipment

Cualification

9igure 1 +,M% .er ice Lines .. . E?ui0me$t Re$ta' Service#( +,M% will offer as comprehensi e a fleet of welding and non destructi e e!uipment for construction including welders) 388) 688 F :88 amp) diesel powered) as clients will find any where( -hether clients re!uire a small portable GM2% AM2GB or G%2- A%"GB machine or a large plasma cutter) +,M% can supply their needs( -hatEs more) +,M can deli er it to clients around /;+ and pic$ it up when the client is finished( A.ee 2ppendix /o( 0B +,M%Es e!uipment will be late model) currents technology) in excellent condition( +,M will rent the following items on a daily) wee$ly) and monthly basis> M"G -elders) %"G -elders) .tic$ -elders) Plasma +utters) and Engine<dri en -elderKGenerators ..). *ateria' Te#ti$@ La!&rat&ry Service#( +,M will pro ide the necessary erifications on arious types of materials through a ariety of /on &estructi e %esting %echni!ues( "ts $nowledge of material specifications enables it to assist on material e aluations including weld !ualifications) corrosion analysis) and numerous other applications( a( -elding "nspection .er ices> /on<&estructi e F &estructi e %esting 9acilities -elder Performance -elding Procedure %est Positi e Material "dentification AP(M("(B b( /&% Laboratory %esting .er ices>

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7<,ayH 9ilm 7<,ayH ,eal %ime 7<,ayH ,eal %ime 9ocus Gamma ,ay *a@$etic Partic'e -et 9luorescent &ry 3isual Li?ui% Pe$etra$t 9luorescent 3isible Post Emulsified >i#ua' I$#0ecti&$ Sy#tem#

Ra%i&@ra0<ic

E%%y 8urre$t Micro

9law &etection Material .ort

Har%$e## 3'tra#&$ic

'rinell ,oc$well +ontact "mmersion

Positi e Material "dentification APM"B Production ,un +apabilities in all methods

Qualifications: +,M% will ha e the following certifications by the end of the third year of the operations 20L2 2merican 2ssociation of Laboratory 2ccreditation /2+2P /2+2P 2ccredited 2-. 2merican -elding .ociety 2./% 2merican .ociety of /&% 2".+ 2merican "nstitute of .teel +onstruction /.'2 /ational .teel 'ridge 2lliance P+" PrestressedKPrecast +oncrete "nstitute 2.%M 2merican .ociety of %esting F Materials /2+E /ational 2ssociation of +orrosion Engineers ..P+ .teel .tructures Painting +ouncil ..+. E$@i$eeri$@ 8&$#u'ti$@ i$ Aua'ity a$% :e'%i$@( +,M% will pro ide technical welding) !uality) /on &estructi e %esting< +onsulting .er ices) C2 inspection) testing and welding training to a ariety of industries worldwide( .... Sc<&&' &- :e'%i$@( +,M% will perform courses throughout the year on the arious types of arc welding methods to educate and train students in arc welding safety) processes) techni!ues and Lincoln products as well as !ualification and certification programs( Sta$%ar% 8&ur#e# 'asic Plate F .heet Metal A%va$ce% 8&ur#e# 2d anced Pipe -elding

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>.

Pipe -elding Plasma) 5xy<9uel) 2lloy F Hardfacing Gas %ungsten 2rc -elding AG%2- < %"GB Gas Metal 2rc -elding AGM2- < M"GB 9lux<+ored 2rc -elding A9+2-B +omprehensi e Program

.ubmerged 2rc -elding A.2-B Maintenance -elding +ertified -elding "nspector Prep +ourse) .eminar F %est Cualification) +ertification F +ustomized %raining

*ar/eti$@ Re#earc< a$% Eva'uati&$ +,M% will focus on traditional engineering consulting) material testing and rental welder e!uipment

2. . *ar/et Se@me$tati&$> contracts( 2ctually) /;+ counts on the following segmentation> :EL1I4G AREA TYPE -elding +ontractors -elding .er ices -elding ,epairs -elding "nspections and +onsultants -elding E!uipment ,ental

B 8O*PA4IES 031 176 08 01 11

Howe er) +,M% will achie e /ew ;or$ +ertification in order to be listed in the &irectory of +ertified Minority and -omen<5wned 'usiness Enterprises( .o +,M% will start to offer its ser ices to the state agencies and contractors statewide( 2ccording to the &irectory of Minority and -omen 5wned 'usinesses by Empire .tate &e elopment) there are 61 companies classified as minority and women owned business( 2lso) these contractors are di ided by ser ice nature and their re enues(
RE>E43ES Less than #188)888 #188)888 < #6@@)@@@ #:88)888 < #@@@)@@@ #1)888)888 < #6)@@@)@@@ #:)888)888 and o er %5%2L B8O*PA4IES 13 17 1 4 0 61

2.). Service Cu#i$e## A$a'y#i#( 'usiness participants) +ompetition) and main competitors describe the aspect of the ser ice business en ironment( %he ma=ority of consulting ser ices cater to the needs of the cityEs impro ement and de elopment pro=ects( %he city operates on a budget of approximately # 08 billion per year in construction pro=ects(

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%he competition is based on the &irectory of Minority and -omen 5wned 'usinesses by Empire .tate &e elopment( %he ser ices pro ided by those companies are the following Asee appendix 3B> :3? 0?

7?

1@? 18?
'usiness .er ices E!uipment ,ental and Leasing Management .er ices %esting Laboratories

0?

7?
Engineering .er ices Management +onsulting .er ices .ur ey ing .er ices

2fter e aluation) +,M% owners found out that in the area of welding training) there is only one competitor) 2PE7 school) but were we will be located there is no competition and because of that the mar$et is open to our company and to our ser ices( 2.+. *ar/eti$@ Pr&-i'e=8&$#umer# a$% 1ema$% %he typical consumer for this type of business will be big and small companies( 5ur high tech e!uipment will be rented by big companies for a period of time( %he cost of rent of e!uipment will be based on daily to monthly use( +,M% will pro ide engineering consulting and e en classes for students interested in welding( 2... *ar/eti$@ P'a$( 5ur new mar$eting focus renews our ision and strategic focus on adding alue to our target mar$et segments) the small business) big businesses and high<end home office users) in our local mar$et( +,M% "ndustrial will change its focus to differentiate itself from other businesses and impro e the business by filling the real need of small and large businesses( 5ur mar$eting challenge is to position our product and ser ice offerings somewhere on top and to be considered one of the best company out there( 2.2. *ar/eti$@ D H&; :e A%verti#e 2fter building the business) our company started ad ertising in different places our products( &ue to ery few businesses that supply consumers with these types of products) ad ertising is ery helpful for us because demand is ery high( 5ur business will be ad ertising in arious newspapers such as &aily

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/ews) /ew ;or$ %imes and in the free newspapers that come out daily because it is strongly confirmed that most people read the newspaper on a daily basis( 2lso) +,M% will design and participate in technical magazines belonged to 2-. A2merican -elding .ocietyB) 2./% A2merican .ociety of /on &estructi e %estingB) and PM" APro=ect Management "nstituteB( %hus) we wiil ad ertise by handing out flyers with our logo and information( 5ur website address is www(crmtindustrial(com( 5ur main source is 'an$ of 2merica who we ha e a contract with) we supply them with our customers that need a loan to be able to rent the e!uipment and they are our main source when people go to the ban$) they ad ertise our products because they get a commission for referring clients to us( More customers will find out about our products by word<of<mouth) we ha e commission based plans where) who refers a customer to us gets an incenti e( "n the type of business that we ha e) mar$eting is ery important but due to little competition) our ser ices are needed and by ad ertising we get more customers and this way our product gets $nown out there( Advertising Flyer:

CRMT INDUSTRIAL SERVICES, In'.


+,M% pro ides specialized engineering consulting) testing ser ices) and operati e welding training applied in hea y industrial) shipbuilding) steel building erection) pipe welding and fabrication Go to +,M% website at www(crmtindustrial(com for more information or call us at 1<488 -EL&"/G(

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New Engineering Solutions to the Industry

Logos Designed 8ORPORATI>E LOGO :EL1I4G LOGO

"t will be used for formal communications >I. O0erati&$# P'a$ = O0erati&$a' 8&$tr&'

"t will be used for -elding %raining AManualsB and 2d ertising

E. . Ge$era' Service 1e#cri0ti&$( %he +ompany offers standards and specialist ser ices to meet each customerOs needs( .tandard ser ices are displayed in a catalogue for customer selection( .pecialist ser ice re!uirements differ from one customer to another Aand from one contract to anotherB( 5nce a proposal is accepted by the customer) or an order is placed) it is recorded and re iewed to establish that the re!uirements of the order are ade!uately defined and documented) any differences from the proposal are resol ed) and the +ompany is capable of fully satisfying the customers re!uirements( "n addition to the original orderK contract specification the customer may also re!uest additionK ariation wor$ to be underta$en by the +ompany( "n these circumstances the wor$ content is documented and agreed with the customer prior to execution to ensure that no ambiguity exists( %he +ompany operates on a computerized order processing system to ensure rapid fulfillment of customer orders( E.). Aua'ity Pr&@ram( 1&cume$tati&$ %he Cuality Program is documented within this manual and may be supported at any point by des$ or wor$ instructions that may be selected to increase control of a !uality function( &es$ or wor$ instructions affecting Cuality shall be appro ed by the General Manager(

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P'a$$i$@ %he Cuality Program is planned to control the pro ision of ser ices from the re!uirements of a customer order to include procurement practices) receipt of material) inspection receipt of supplier material) handling) and storage to the e entual shipment of an article to our customer( E.+. I$%&ctri$ati&$ a$% Trai$i$@( 2ll +,M% employees will be indoctrinated and trained) as necessary) to assure that suitable proficiency is achie ed and maintained throughout our operation systems( %raining is performed as *5n the Iob %raining* under the direct super ision of management( Procedural changes are implemented by training of any indi idualAsB affected by the change( E... 8&mmu$icati&$ &- Re?uireme$t#( Policy> %op management communicates to the organization the importance of meeting customer re!uirements as well as statutory and regulatory re!uirements( &etails> "n general) the underlying message in all oral and written management communications in ol es meeting the aforementioned re!uirements( Meeting customer re!uirements ensures that ongoing business relationships secure the contracts that $eep e eryone employed( Meeting statutory and regulatory re!uirements ensures that laboratory operations will not be disrupted and the organization can continue to meet customer needs( 5perational Plan E.2. Ge$era' Cu#i$e## O0erati&$( %he following section will identify the proposed operational plan for +,M% "ndustrial .er ices) "nc( "ncluded are the general operating procedures) human resources) insurance) and wor$ing capital re!uirements of the business( General Operating Hours +,M% "ndustrial .er ices) "nc( intends to operate rental) consulting and testing ser ices Monday thru 9riday from @ am to : pm( %he -elding .chool will be operated Monday thru 9riday from 7 am to 18 pm and .aturday from @ am to 1 pm( +%M% will be operational year round( Human Resources

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Mrs( Liliana Melo will wor$ as &irector Manager as well as .chool -elding Manager( Miss &aniela ,omasan will wor$ as 2dministrati e Manager( Mr( +raig +usanelli will wor$ as 9inance Manager) and 2min %aurani will wor$ as .ales Manager( 9inally) Mr( Ionny 5larte will wor$ as /&% Manager( His wor$ will be account as way of partnership introduction( "n addition) Miss &aniela ,omasan will select and recruit new personnel to wor$ on these following =ob positions> A1B sales person) A1B 'oo$$eeping) A1B General .ecretary) A1B Electrical %echnician) A0B "nspectors) and A1B Laboratory %echnician during /o ember) 0887( 5nce hired) all employees will be co ered by the -or$ers .afety and "nsurance 'oard and co ered for Employment 'enefits( Insurance Requirements +,M% "ndustrial .er ices) "nc( will ha e to incur costs for business liability insurance( %he estimated cost for this re!uirement is #18)888 per year( Operating Capital Requirements
&ue to the demands imposed at start up) +,M% "ndustrial .er ices) "nc( will re!uire that the

business ha e sufficient wor$ing capital to meet all operational responsibilities of the business for the first three months( "t is estimated that the business will need approximately #7:8)888 in wor$ing capital to sustain and ensure the business meets all opening and on<going financial obligations(
2lso) throughout the year there tends to be periods of low acti ities( +onse!uently) the company

will experience financial pressures during these months( -hile much of this time will be spent de eloping proposals and mar$eting strategies) there will be a need to maintain sufficient wor$ing capital to co er these periods(
2 long term strategy to maintain a positi e cash flow during these periods will be to di ersify the

company and de elop en ironmental training programs for certain communities( %hese training programs will be gi en during these months(
+,M% "ndustrial .er ices) "nc( will rent office space on located at>

3316 Cueen 'oule ard Long "sland +ity) /; 11181<1381(


%he office space is rented and will accommodate the necessary office e!uipment such as

computers) fax machine) photo copier) and other engineering e!uipment as well as the ad=usting of wor$ areas such as /&% Laboratory) -arehouse) +lassroom) -elding .chool) and administrati e area A.ee appendix 0B( %his facility will re!uire an estimated #:8)888 to reno ate in a style that is aesthetically pleasing to the clients as well as the owners(

Page 14 of 37

"t is estimated that the length and terms of payments are net 38 for all clients( %his will allow the

business to a oid cash flow problems( Late payment charges are 0? of the pro=ects outstanding balance( E.E. :&r/ e$vir&$me$t +,M% "ndustrial .er ices) "nc( pro ides employee benefits) =ob and schedule flexibility) interesting wor$) and in ol ement of our employees in an empowered en ironment of continual impro ement( +,M% "ndustrial .er ices) "nc( engenders total participation by in ol ing employees in internal audit and impro ement acti ities( %he 2dministrati e Manager has o erall responsibility for identifying) implementing and maintaining effecti e employee benefit and wor$force in ol ement programs( 2ll %echnical Managers and 2dministrati e Managers ha e o erall responsibility for identifying) implementing and maintaining safety and en ironmental management systems) processes and controls needed to ensure product conformance and meet customer) statutory or regulatory re!uirements Areference applicable .afety andKor En ironmental Management documentsB( +,M% "ndustrial .er ices) "nc( monitors and impro es wor$place safety) health) and ergonomics through adherence to good manufacturing practices) and through safety team meetings and training( >II. *a$a@eme$t Team +,M% "ndustrial .er ices) "nc( will initially ha e four owners who are acting as managerial employees and six employees( %he owners will be responsible for all daily operations in the company( Mrs( Liliana Melo will wor$ as &irector Manager as well as .chool -elding Manager( Miss &aniela ,omasan will wor$ as 2dministrati e Manager( Mr( +raig +usanelli will wor$ as 9inance Manager) and 2min %aurani will wor$ as .ales Manager( 9inally) Mr( Ionny 5larte will wor$ as /&% Manager( His wor$ will be account as way of partnership introduction( 5.). Per#&$$e' P'a$ Miss &aniela ,omasan will select and recruit new personnel to wor$ on these following =ob positions> A1B sales person) A1B 'oo$$eeping) A1B General .ecretary) A1B Electrical %echnician) A0B "nspectors) and A1B Laboratory %echnician during /o ember) 0887( 5nce hired) all employees will be co ered by the -or$ers .afety and "nsurance 'oard and co ered for Employment 'enefits( FOC POSITIO4 .ales person 'oo$$eeping General .ecretary A*O34T 1 1 1 SALARY # 6)888 # 3)888 # 0)188 TOTAL # 6)888 # 3)888 # 0)188 5. . Ge$era' *a$a@eme$t Team(

Page 1@ of 37

Electrical %echnician 1 "nspector 0 TOTAL SALARY E9PE4SES 5.+. Or@a$iGati&$a' Structure

# 3):88 # :)888

# 3):88 # 18)888 $ )+7 66

+,M% "ndustrial .er ices) "nc( will be created as a limited liability company( %he company will be pri ately owned by &aniela ,omasan) Liliana Melo) +raig +usanelli) and 2min %aur( 2ll administrati e and accounting duties will be contracted out( 2ny additional staff re!uired will be obtained on a subcontract basis(
Ge$era'*a$a@er *a$a@er Ge$era' "nternal+ontrol +ontrol "nternal .alesK K+ustomer +ustomer .ales Manager ..Manager /&%Laboratory Laboratory /&% Manager Manager -elding.chool .chool -elding Manager Manager Management Management +ommittee +ommittee +onsulting +onsulting Manager Manager 9inanceManager Manager 9inance 2dministratieeK K 2dministrati H,Manager Manager H,

Mar$eting Mar$eting ,ental.er .erices ices ,ental

>III.

Time'i$e(
B%n'()#!*+A' "&" , R%s-.ns"/$% P#! , T")% 0W%%*s1 B%2"nn"n2 D# % C.)-$% ".n D# %

PLA44I4G Penultimate draft 'usiness K 9inancial Plan submitted to Managers and other concerned parties) getting feedbac$( Plan finalized and appro ed( ORGA4IHATIO4AL LEGAL OCLIGATIO4S -or$ing with legal counsel) establish formal corporate documents -or$ing with legal counsel) initiate filings for incorporations) tax exemptions) intellectual property registration) copyrights) trademar$s Licensing and Permits

2ll Managers General Manager 2ll Managers General and 2dministrati e Manager General) .ales and 2dministrati e Manager 9inance Manager

0 1 6 10

81K86K87 81K14K87 81K0:K87 81K0:K87

81K14K87 81K00K87 87K03K87 8@K16K87

87K8@K87

84K17K87

FI4A48IAL Establish financial) accounting) payroll systems)

81K0:K87

84K81K87

Page 08 of 37

policies and practices 1E8ORATI4G A41 RE*O1ELI4G Hire contractor &esign areas 2d=usting water and electrical installations +onstruction areas> 2dministrati e) /&% Laboratory) -arehouse) +lassroom and -elding .chool FI9T3RES A41 EA3IP*E4T .election of 5ffice E!uipment .election of -elding E!uipment .election of /&% E!uipment .election of %ools and "nstruments

2dministrati e Manager 2ll Managers and +ontractor +ontractor +ontractor 2dministrati e Manager .ales and -elding .chool Managers /&% Laboratory Manager -elding .chool and /&% Laboratory Manager 2dministrati e Manager and %echnical Managers 2dministrati e Manager .upplier .upplier and %echnical Managers .upplier and 2dministrati e Manager .uppliers and %echnical Managers 2ll Managers -elding .chool Manager

0 1 6 10

81K0:K87 87K8@K87 87K11K87 87K11K87

87K81K87 87K13K87 84K18K87 18K8:K87

0 0 0 0

87K11K87 87K11K87 87K11K87 87K11K87

87K07K87 87K07K87 87K07K87 87K07K87

Purchase e!uipment) machines) tools and instruments

: 1 1 6 0 6 6 1

87K03K87 84K07K87 84K07K87 18K8@K87 18K8@K87 18K00K87 11K1@K87 11K1@K87

84K06K87 84K31K87 18K8:K87 11K80K87 18K1@K87 11K11K87 10K16K87 11K03K87

Purchase %ruc$s I4STALLATIO4 A41 A1F3STI4G EA3IP*E4T &eli ery of e!uipment and instruments purchased "nstallation and ad=usting of operational e!uipment "nstallation and ad=usting of administrati e e!uipment

%raining of using operational e!uipment Elaboration of "nstructions of administrati e and operational e!uipment -arehouse "nstallation *AR,ETI4G A41 PRO*OTIO4 -or$ing with editor and ad isor) establish criteria for content "mplement mar$eting plan 2c!uire all prospect lists for direct mar$eting 9inalize pricing -ed .ide &esign

.ales Manager .ales Manager and %echnical Managers .ales Manager General Manager and .ales Manager .ales Manager and .upplier

1 1 1 1 6

18K81K87 18K81K87 18K81K87 18K81K87 18K8@K87

18K8:K87 18K8:K87 18K8:K87 18K8:K87 11K80K87

Page 01 of 37

Launch sales promotional efforts) start to ma$e) recei e) process sales) coordinate with 9inance for in oicing and collections( HIRI4G PERSO44EL Iob 2nalysis Process Employee ,ecruitment .electing Employees Placing and %raining Employees A3ALITY ASS3RA48E 2d=ust Mission) 3ision) Cuality 5b=ecti es 2ppoint Cuality +ommittee 2ppoint Cuality ,epresentati e Prepare Plan to Elaborate Cuality Manual Plan implementation ".5 @888>0888 %rain Personnel FI4AL RE>ISIO4S A41 A1F3STI4G OPERATIO4AL PRO8ESSES 2d=ust operational process and customer ser ice START C3SI4ESS D OPE4 1OORS

General Manager and .ales Manager 2dministrati e and technical managers 2dministrati e Manager 2dministrati e Manager 2dministrati e and technical managers 2ll Managers 2ll Managers General Manager Cuality ,epresentati e Cuality ,epresentati e Cuality ,epresentati e

18K8@K87

11K38K87

1 0 1 6 1 1 1 1 0 1

18K81K87 18K8@K87 18K00K87 11K81K87 11K01K87 11K01K87 11K01K87 10K83K87 10K83K87 10K17K87

18K8:K87 18K1@K87 18K01K87 11K38K87 11K38K87 11K38K87 11K38K87 10K87K87 10K16K87 10K01K87

2ll +ompany 2ll company

0 1

81K87K84 81K00K84

81K14K84

I9.

8ritica' Ri#/# a$% A##um0ti&$# Liability for in=ury or death of employees or other people on +,M% premises( Liability for in=uries or damage caused by ser ices +,M% ma$es( &estruction or theft of property) e!uipment) machinery) ehicles or other assets( Loss of net income through lost sales or extraordinary expenses( 2nything else that ad ersely affects the way +,M% does business Asuch as interruptions to suppliers due to a natural disasterB( 5ut of cash before orders secured +ompetition price cutting +osts in excess of estimates Lnmet scheduleAsB

I. . P&##i!'e Ri#/#(

Page 00 of 37

&ifficulties with credit Lots of orders and /5 cash Lnfa orable industry trends .ales pro=ections not achie ed Long lead times in procurement Lnexpected de elopment costs I.). *a$a@eme$t &- Ri#/# = A##um0ti&$#( +,M% "ndustrial .er ices) "nc( has planned routes that help secure the stability of the company( 'y in estment in real estate and growing assets that can be easily li!uidated for cash or can be used to obtain cash from lenders using the e!uity can help stabilize the companyEs needs during that specific time period where cash is not immediately a ailable( 2lso reser e funds shall be $ept separate from company profits for any unexpected de elopment costs that may arise on future dates( Cuality shall be prime ob=ecti e so e en when the competition causes reduction in prices +,M% will be $nown for its superior ser ice and reliability( Purchase ade!uate insurance to transfer financial responsibility for losses to +,M% insurer( 5btain enough insurance to co er all ris$s( Jnow the "nsurance Policies> re iew the policies with the independent insurance agent and) if necessary) purchase additional co erage to ensure that the business is fully protected( Lease 'usiness Property and E!uipment> +,M% may be able to transfer Property and liability ris$s in whole or in part to the lessor( %ransfer ,is$ to the +ustomer( %al$ with lawyer about ways to transfer ownership and ris$ Hire the ,ight .ubcontractors( +,M% can minimize high<ris$ ser ice liability exposures &ecline ,is$y 'usiness( Let the competitors ta$e the chances on potentially dangerous pro=ects or entures( %a$e a close loo$ at how +,M% does business( 2ssess e!uipment) facilities) employees) processes) and ser ices( %a$e ad antage of the excellent loss control ser ices pro ided by many insurers( %hey can help to identify and control ris$s at the company(

FI4A48E RIS,S

TRA4SFER RIS,S

8O4TROL RIS,S

I.+. I$#ura$ce#( .er ice Liability "nsurance to protect the business from general) negligent liability( Health "nsurance to ha e a company plan to pro ide health benefits to the employees(

Page 03 of 37

Personal &isability "nsurance to replace some percentage of personal income in the e ent that anybody in the company is pre ented from earning a li ing( Property "nsurance to protect the business property from destruction( Jey Person "nsurance to protect the business from the loss of a $ey partner or employee( 'usiness "nterruption "nsurance to protect from catastrophes which interfere with the normal operation of a business( 9. Ce$e-it# t& t<e 8&mmu$ity "n todayEs society it is important that a company not only ma$es a profit and stri es to succeed in its field but also has a positi e impact in the community in which it ser es( "n order to contribute and benefit not only +,%M team but also the entire community) +M,% "ndustrial .er ices) "nc has set up different methods to benefit the neighborhood of Long "sland +ity and /ew ;or$ +ity( 8RT* TEA* Pro ide our employees with opportunities to use their professional s$ills to olunteer in local HL& programs and other charitable e ents( Pro ide +,M% employees with opportunities to use their professional s$ills outside their day<to< day en ironment( Lin$ pro bono wor$ to the +ontinuing Professional &e elopment program( Manage the administration of the pro bono program to employees who will achie e their goals and help to impro e the organization( .trengthen employeesE leadership and moti ation( Ma$e employees participate in the growth of the company by internal pro=ects of impro ement( 'uild new careers and opportunities for +,M% employees and suppliers( 9ortify supplier chain by special program of training in !uality assurance( 8O**34ITY Pro ide internships to students attending surrounding schools( Lsing en ironment friendly ser ices( 5ffering =ob placement "n ol ement in matters that affect community businesses( &e elop the understanding of $ey social issues in your local community by scholarships 'uild new business contacts locally and regionally( -or$ collaborati ely with other firms that need a range of professional s$ills and expertise to strengthen the technology and $nowledge applied in welding industry( 'e another alternati e of technical education in /ew ;or$ +ity( &e elop new opportunities in young people by training and special programs( +reate economic opportunity to the community as well as /ew ;or$ +ity(

9I.

Fi$a$cia' P'a$ I$itia' 8a0ita'iGati&$ Pro 9orma .tatement CEGI44I4G I4>E4TORY $5267666

. . Fi$a$ce Summary(

Page 06 of 37

+omputer e!uipment Purchased software y licenses 9urniture and 9ixtures ,emodeling and &ecorating -elding and %esting E!uipment %otal 'eginning "n entory :OR,I4G 8APITAL .alaries and wages Expenses 2d ertising ,eser e %otal proceeds for wor$ing capital and reser e ,e!uired 9inancing %otal 3 MonthsE Portion A:8? of %otal "nitial +apitalizationB %erm of 9inancing> 1(:? for : years .). Fi$a$cia' O!"ective#(

# 18)888 #:)888 # 08)888 # 38)888 # 6:8)888 # :1:)888 # 188)888 # :8)888 # 08)888 # 1:)888 # 03:)888 #7:8)888

%he financial ob=ecti es of +,M% "ndustrial .er ices) "nc( o er the next few years are as follows> .ales 5perating Expenses A:8?B "ncome before %ax %axes A38?B /et "ncome after %axes )66J 146)888 674)488 08:)088 1@)714 13:)630 )66I 44@)088 100)668 011)718 @8)1@4 171)810 )6 6 1)314)888 @:7)188 618)688 13@):31 078)416

%he +ompany loo$s forward to a mutually profitable relationship with the 'an$ of 2merica( .+. Fi$a$cia' S$a0#<&t (Pr&"ecte%) +,M% "ndustrial .er ices) "nc( is a high<end welding e!uipment and consulting company with a reputation for integrity) !uality craftsmanship) and excellence in management( +,M% "ndustrial .er ices) "nc( was formed by +raig I( +usanelli) Liliana Melo) &aniela ,omasan and 2min %aurani as a start<up company in Ianuary 0884( %he +ompany will ha e its address in leased premises at 3316 Cueen 'oule ard) Long "sland +ity) /; 11181<1381( "ts acti ities fall under the .tandard "ndustrial +lassification ."+ 1:01 and 1:00( %he store owners are 'rian .mith and Iulie 'an$ert( %he website address will be www(crmtindustrial(com( Eighty to ninety percent of the Gross .ales are in design and construction( "n /o ember 0887) there will be 1 permanent employees on the payroll A#03)888 in salary expensesB(

Page 0: of 37

%he companyOs .hort %erm 5b=ecti es Awithin the next three yearsB are to increase acti ity in both di isions) and to achie e annual sales o er #:88)888 at the end of the first year of operations( "ts Long term ob=ecti es are> to maintain the le el of current business achie ed and then to mo e into more light commercial wor$) and increased new custom home construction and construction businesses( %o implement these ob=ecti es the company needs> a( 2 loan of #7:8)888 at Prime plus 0?( %his loan to be used for current near term expenses including in entory) rent and payroll( "t will be repaid in fi e years( b( 2 line of credit of #:8)888 to ta$e ad antage of discounts a ailable) a oid associated penalties) and expand into high profit areas re!uiring positi e cash flow( %he prospects for +,M% -elding .er ices) "nc( continued growth are excellent) with 18 pro=ects) 48 students) and 188 testing ser ices monthly) achie ing sales o er # 1)388)888 at the end of the third year of operations( 9or e!uity the company has assets of #007)888( 2dditionally) the companyOs owners are willing to offer as collateral a second mortgage on a residence with an estimated e!uity of #1:8)888( %he address of this residence is 01<34 31st .treet) 2storia) /; 1118:( %he companyOs o erall ob=ecti e is to satisfy that mar$et segment that demands integrity and !uality construction) and to maintain a steady growth in sales olume that will sustain the company for twenty years( +raig I( +usanelli and his team ha e enhanced his reputation to the point where the company is regarded by many architects as the recommended choice with their clients due to the excellence of its craftsmen and management( Mar$et research shows that in general) the indoor welding industry and engineering consulting ser ices is a large industry not only in /ew ;or$ +ity) but also in entire Lnited .tates( 2ccording to the +ensus 0880) 031 welding establishments exist in /ew ;or$ +ity( "ts dollar alue of business done is 3)7@@):40)888 with an annual payroll of 7@6)817)888 and the amount of paid Employees is 11)104( %herefore) +,M% -elding .er ices) "nc( intends to pursue this mar$et igorously( A.ee 2ppendix 6B

Page 01 of 37

TABLE OF APPENDICES

2ppendix 1 2ppendix 0 2ppendix 3 2ppendix 6

"nitial E!uipment "n estment &esigning and 2d=usting 2reas List of +ompetiti e +ompanies 9inancial .tatement "nformation

Page 07 of 37

ITE* 1 0 3 6 : 1 7 4 @ 18 11 10

1 0 3 6 : 1 7 4 @ 18 11 10

1 0 3

1 0 3 6 : 1 7

APPENDI3 N.. 4 INITIAL E5UIPMENT INVESTMENT WELDING AREA *3LTIPRO8ESS EA3IP*E4T 1ES8RIP8IO4 34IT A*O34T 7M% 386 ++K+3 &+ :<688 2MP. 088<038K6883 18 HP 1<3 Phase L/"% : -ire 9eeder -ith &igital &isplay 002 L/"% : GM2% GL/ 6:8 2MP. 1: 9% %-E+5 L/"% : +5/%2+% %"P HE23; &L%; %5LGH L5+J (83: L/"% :8 ,EGLL2%5, +50( L/"% : +5/E+%5, PK,EGLL2%5, L/"% : 2,+ GL2,& GEL 11 5P M"LLE, L/"% : +able type 1K18 m 188 -or$ +able of :88 2MP. L/"% 18 %erminals of 1K0* L/"% 18 %"G %5,+H P2+J2GE 2",E 088 2MP. 32L3E +KL : +5//E+%5,) "/.LL2%E& .E,"E 78 A M2LE B 1K8<3K8 +KL : S3CTOTAL STI8, :EL1ERS Lincold ,3, 688 &+ 2,+ -EL&E, L/"% : Electrode Holder 688 2MP L/"% : -or$ +able of :88 2MP. L/"% 18 +able type 1K18 m 188 "dealarc 0:8 J18:3<7 L/"% : Electrode Holder 088 2MP L/"% : -or$ +able of 088 2MP. L/"% 18 +able type 1K18 m 188 "n ertecQ 307:<. L/"% : Electrode Holder 388 2MP L/"% : -or$ +able of 388 2MP. L/"% 18 +able type 1K18 m 188 S3CTOTAL AR8 S3C*ERGE1 :EL1ERS Lincold &+<1888 L/"% 18 L%<7 .ubmerged 2rc &+ -ire 9eeder L/"% 18 2ccessories and +ables A$itB L/"% 18 S3CTOTAL WELDING AREA TOTAL NON DESTRUCTIVE TESTING AREA THI8,4ESS GA3GES %<M"JE<P .tress%el %<Mi$e P Programmable L/"% 1 %<M"JE<EL .tress%el %<Mi$e EL L/"% 1 P188'M Posi%ector 188 'KM Memory L/"% 1 P'188 Posi%ector ' Probe 5nly for 188 Model L/"% 1 PL%G Posi%ector L%G Lltrasonic %hic$ness Gage L/"% 1 PL%G. Posi.oft .oftware for Posi%ector L%G L/"% 1 PL%G%' +alibration %est 'loc$ for Posi%ector L%G L/"% 1

34IT PRI8E #0)@87(88 #748(88 #416(70 #3(10 #0:8(88 #06(@: #11(71 #14(31 #3:(40 #6(70 #:81(88 #:1(14

TOTAL #16):3:(88 #3)@88(88 #6)303(:4 #1::(@: #1)0:8(88 #106(76 #:4(41 #1)43:(:8 #3:4(14 #67(00 #0):38(88 #0:4(3@ $)I7+55.+E #7)6@@(7: #10:(88 #3:4(14 #1)431(88 #1):88(88 #:8(88 #1:1(88 #1)431(88 #@)001(38 #:8(88 #1:1(88 #1)431(88 $)I7E)I.)+ #71)@18(88 #1@)@48(88 #188)888(88 $).E7JI6.66 $605,789.58

#1)6@@(@: #0:(88 #3:(40 #14(31 #1)388(88 #18(88 #1:(18 #14(31 #1)46:(01 #18(88 #1:(18 #14(31

#7)1@1(88 #1)@@4(88 #18)888(88

#1)81:(88 #0):18(88 #6)6@:(88 #1):88(88 #@@:(88 #@:(88 #03:(88

#1)81:(88 #0):18(88 #6)6@:(88 #1):88(88 #@@:(88 #@:(88 #03:(88

Page 04 of 37

4 @ 18 11 10 13

1 0

1 0

1 0 3 6 : 1

1 0 3 6 : 1

PL%GLP'+ Posi%ector L%G Leather Pouch wK'elt +lip L/"% 0 PL%GG 2dditional 6 oz( Lltrasonic Gel for Posi%ector Acase of 10B L/"% 1 &M6 &igital %<Gauge with M%hrough +oatingN %echnology L/"% 0 &M6L &igital %<Gauge with M%hrough +oatingN A&ata LoggerB L/"% 0 &M. 0 2<.can &ata Logger %<Gauge MwithoutN '<scan L/"% 1 &M. 0E 2< .can &ata Logger %<Gauge MwithN '<.can L/"% 1 S3CTOTAL 3LTRASO4I8 TESTI4G = FLA: 1ETE8TOR L./ :4 L Lltrasonic 9law &etector L/"% 0 2ccessories and +ables A$itB L/"% 0 S3CTOTAL HAR14ESS TESTI4G &ynapoc$et ,ebound MLeebN method L/"% 0 M"+ 18 Lltrasonic L+" method L/"% 1 S3CTOTAL PARTI8LES *AG4ETI8 A41 PE4ETRA4TS Penetrants +onsumibles J"% 08 Penetrants 'loc$s and +ontrol J"% 1 Penetrant "nstruments L/"% 1 Particles Magnetics +onsumibles L/"% 18 Particles Magnetics 'loc$s and +ontrols L/"% 1 Particles Magnetics E!uipment < ;o$e L/"% 3 S3CTOTAL OTHER TE8HI4IA3ES 3isual "nspection L/"% 1 Gauges L/"% : -elding "npection Jits L/"% : ,adiographic E!uipment L/"% 0 +urrent Eddy E!uipment L/"% 0 5thers L/"% 1 S3CTOTAL NON DESTRUCTIVE TESTING AREA TOTAL INITIAL INVESTMENT TOTAL

#1:(88 #7:(88 #0):88(88 #0)488(88 #3)188(88 #3):88(88

#38(88 #7:(88 #:)888(88 #:)188(88 #3)188(88 #3):88(88 $)J7)26.66 #11)888(88 #0)888(88 $ J7666.66 #6)188(88 #:):88(88 $ 67 66.66 #0)888(88 #1):88(88 #1)188(88 #7:8(88 #0)888(88 #6):88(88 $ )7+26.66 #4):88(88 #7:8(88 #1):88(88 #08)888(88 #1@)888(88 #0)888(88 $2 7526.66 $4:0,;50.00 $;:9,6;9.58

#4)888(88 #1)888(88

#0)388(88 #:):88(88

#188(88 #1):88(88 #1)188(88 #7:(88 #0)888(88 #1):88(88

#4):88(88 #1:8(88 #388(88 #18)888(88 #@):88(88 #0)888(88

Page 0@ of 37

APPENDI3 :. DESIGNING AND ADJUSTING AREAS

9igure 1 +,M% "ndustrial .er ices) "nc( %otal area distribution

9igure 0 -elding .chool &istribution


Page 38 of 37

9igure 3 +lassroom &esign

Page 31 of 37

APPENDI3 6 LIST OF COMPETITIVE COMPANIES 8O*PA4Y


2d anced Professional Engineering Pc 2fridi 2ssociates 2shnu "nternational "nc 2ssociated +onsulting "nc 2 r +onsulting +o + 9rancis +onstruction "nc +allah 'enue 2ssociates "nc &agnachew 2nd 2ssociates "nc &unne F Mar$is +onsulting .tructural Eng E J Engineering Pc Emte!ue +orporation Ensign Engineering P + Entech Engineering P + Ewell - 9inley P +

LO8ATIO4
'roo$lyn /ew ;or$ /ew ;or$ 'roo$lyn .taten "sland 'roo$lyn 'roo$lyn Iamaica ,i erdale 9lushing Midtown 'ronx .taten "sland Long "sland +ity

SER>I8ES
Engineering .er ices Engineering .er ices 2rchitectural .er ices Management .er ices Engineering .er ices 'usiness .er ices Engineering .er ices 2rchitectural .er ices .tructural .teel Erection .pecial %rade +ontractors Engineering .er ices E!uipment ,ental and Leasing Engineering .er ices 2rchitectural .er ices Management .er ices Engineering .er ices Engineering .er ices 2rchitectural .er ices 'usiness .er ices Engineering .er ices Engineering .er ices Engineering .er ices 2rchitectural .er ices Engineering .er ices Management .er ices Engineering .er ices 2rchitectural .er ices .ur eying .er ices Management .er ices Engineering .er ices .tructural .teel Erection .tructural .teel Erection Engineering .er ices 2rchitectural .er ices .ur eying .er ices Management .er ices 2rchitectural .er ices Engineering .er ices 2rchitectural .er ices Management .er ices Management +onsulting .er ices 'usiness .er ices Engineering .er ices 2rchitectural .er ices %esting Laboratories

EST. SALES
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9loyd &aniels Pe Pc 9lushing "ron -eld "nc Genesus 5ne Enterprise "nc Ha$s Engineers F Land .ur eyors Pc Hinman +onsulting Engineers Pc Horace Harris 2nd 2ssociates 2rchitects "ma &esign F +onstruction "nc "mpact +oncrete F +ontrol "nspection "nc

/ew ;or$ 9lushing Maspeth /ew ;or$

Less than #188)888 #1)888)888 < #6)@@@)@@@ #188)888 < #6@@)@@@ #1)888)888 < #6)@@@)@@@

/ew ;or$ 'roo$lyn 'roo$lyn +ollege Point

#1)888)888 < #6)@@@)@@@ #188)888 < #6@@)@@@ Less than #188)888 Less than #188)888

Page 30 of 37

J + Engineering Pc JarahanK.chwarting 2rchitecture +o Jirit ,( &esai Pe) Pc Ln$ +onsulting Engineer Pc Longi Engineering P +

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Mac$ Glassnauth "ron -or$s "nc Massand Engineering Ls Pc Mc$issac$ Group "nc Mda &esign 2ssociates Pc Mo Engineering Munoz Engineering 2nd Land .ur eying P +

'roo$lyn 9lushing /ew ;or$ /ew ;or$ /ew ;or$ /ew ;or$

Engineering .er ices 2rchitectural .er ices Management .er ices 'usiness .er ices 2rchitectural .er ices Management +onsulting .er ices Engineering .er ices 2rchitectural .er ices Engineering .er ices 2rchitectural .er ices Engineering .er ices 2rchitectural .er ices Management +onsulting .er ices .tructural .teel Erection 2rchitectural .er ices .ur eying .er ices Management .er ices Management +onsulting .er ices 'usiness .er ices 2rchitectural .er ices Engineering .er ices 'usiness .er ices Engineering .er ices 2rchitectural .er ices .ur eying .er ices Management .er ices Engineering .er ices 2rchitectural .er ices Engineering .er ices Engineering .er ices 2rchitectural .er ices Management .er ices Engineering .er ices Engineering .er ices .tructural .teel Erection .pecial %rade +ontractors Engineering .er ices Management .er ices Engineering .er ices 2rchitectural .er ices .pecial %rade +ontractors) Engineering .er ices .pecial %rade +ontractors Engineering .er ices Management .er ices Engineering .er ices 2rchitectural .er ices

#1)888)888 < #6)@@@)@@@ #188)888 < #6@@)@@@

Less than #188)888 Less than #188)888 #:88)888 < #@@@)@@@

#188)888 < #6@@)@@@ #:)888)888 and o er #:)888)888 and o er #188)888 < #6@@)@@@ #188)888 < #6@@)@@@ #1)888)888 < #6)@@@)@@@

/aro 2ssociates /bg Engineers Pc /orfast +onsulting Group "nc Paul Mo$ P E ,eno a Engineering Pc .upreme Piping F -elding +orp .uretech Engineering P + %re or .almon +onsulting Engineer P + 3irgo "ron -or$s "nc -be .heet Metal "nc -inston .mith Pe Pc -m Group Engineers Pc

/ew ;or$ /ew ;or$ Long "sland +ity 9lushing .taten "sland 'ronx /ew ;or$ /ew ;or$ 'roo$lyn 'ronx /ew ;or$ /ew ;or$

#188)888 < #6@@)@@@ #188)888 < #6@@)@@@ #:88)888 < #@@@)@@@ #188)888 < #6@@)@@@ #188)888 < #6@@)@@@ #:88)888 < #@@@)@@@ Less than #188)888 #:88)888 < #@@@)@@@ Less than #188)888 Less than #188)888 #188)888 < #6@@)@@@ #:88)888 < #@@@)@@@

.ource> http>KK08:(030(0:0(3:Kdefault(asp

Page 33 of 37

APPENDI3 ; FINANCIAL INFORMATION SALES PROJECTIONS B< SERVICES 8R*T I$%u#tria' Service#7 I$c. TOTAL OPERATIO4
ITEM SERVICE UNIT + PRICE UNIT + WEE= WEE=L< SALES MONT>L< SALES ANNUAL SALES MONT>L< OBJECTIVE

1 0 3 6

-elding +ourses ,ental E!uipment

#30: #088

08 08

#1):88 #6)888

#01)888 #11)888 #68)888 #30)888

+onsulting #:88 08 #18)888 .er ices %esting #688 08 #4)888 Laboratory TOTAL PROFE8TIO4 OF A443AL SALES
OPERATIN G E3PENSES

#310)888 48 people per month #1@0)888 ,ent 08 e!uipment per month #648)888 9our pro=ects per months #346)888 9our pro=ects per months $ 7+EJ7666
SALES + PROFITS 0?1

<EAR

SALES 0$1

PROFITS 0$1

GOAL

0884 088@ 0818


ITEM

#146)888 #44@)088 #1)314)888


:007

#618)688 #:33):08 #11:)188


:008

#:6)708 #48)804 #1:8)648


:040

4(88? @(88? 11(88?

:8? 5perating 48? 5perating 188? 5perating

.ales 5perating Expenses A18?B "ncome before %ax %axes A38?B /et "ncome after %axes

146)888 674)488 08:)088 1@)714 13:)630

44@)088 100)668 011)718 @8)1@4 171)810

1)314)888 @:7)188 618)688 13@):31 078)416

Page 36 of 37

CRMT Indus !"#$ S%!&"'%s, In'. CALA48E SHEET F&r year e$%e% 1ecem!er + 7 )6 6 Assets )66J Current Assets: +ash 2ccounts ,ecei able Less> ,eser e for 'ad &ebts 5ffice .upplies Prepaid Expenses /otes ,ecei able Total Current Assets Fixed Assets: 3ehicles Less> 2ccumulated &epreciation 9urniture and 9ixtures Less> 2ccumulated &epreciation E!uipment Less> 2ccumulated &epreciation Total Fixed Assets Other Assets: Goodwill Total Other Assets T&ta' A##et# #108)888 #06)888 #6)488 #:)888 #:)888 #13)888 $ E)7)66 )66I #1:8)888 #38)888 #1)888 #@)888 #18)888 #1:)888 $)6J7666 )6 6 #0:8)888 #0:)888 #:)888 #18)888 #1:)888 #17)888 $+ )7666

#0:)888 #6)888 #0@)888 #38)888 #0)788 #30)788 #6:8)888 #41)888 #:31)888 $2I)7566

#0:)888 #4)888 #33)888 #38)888 #:)688 #3:)688 #:88)888 #171)888 #171)888 $5+I7.66

#38)888 #1:)888 #6:)888 #38)888 #4)188 #34)188 #::8)888 #078)888 #408)888 $I6+7 66

#08)888 $)67666 $55.7I66

#38)888 $+67666 $I557.66

#:8)888 $267666 $ 7)E27 66

Liabilities and Capital Current Liabilities: 2ccounts Payable

#1:8)888

#1:8)888

#1:8)888

Page 3: of 37

.ales %axes Payable Payroll %axes Payable "ncome %axes Payable 2ccrued -ages Payable Lnearned ,e enues Total Current Liabilities Long-Term Liabilities: Long<%erm /otes Payable Mortgage Payable Total Long-Term Liabilities T&ta' Lia!i'itie# Capital: 5wnerOs E!uity "n estment T&ta' 8a0ita' T&ta' Lia!i'itie# a$% 8a0ita' 4ET :ORTH

#17)@88 #044):83 #1@):1: #6)888 #@):88 $2+I7.EJ

#@8)1@4 #0@0)163 #1@):1: #6)888 #@):88 $2E27I6E

#13@):31 #308)161 #1@):1: #6)888 #@):88 $E.)75.)

#188)888 #8 #8 $2+I7.EJ

#6:8)888 #8 #8 $2E27I6E

#388)888 #8 $E.)75.)

#13:)630 #188)888 $)+27.+) $55.7I66 $)+27.+)

#611)6@6 #8 $. 7.I. $I557.66 $. 7.I.

#100)3:4 #8 $E))7+2J $ 7)E27 66 $E))7+2J

Page 31 of 37

CRMT Indus !"#$ S%!&"'%s, In'. FI4A48IAL STATE*E4T OF 8ASH FLO: F&r year e$%e% 1ecem!er + 7 )6 6
2008 850,000 54!,200 136,800 135,432 2009 $401,889 848,160 1!!,840 1!6,062 2010 $233,456 1,2!2,240 2!,360 2!0,864

Beginning Cas# Balan$e Cas# %nflo&s '%n$ome() Cash Colle tions Cre"it Colle tions #n$est%ent #n o%e &ther' To*al Cas# %nflo&s A+aila,le Cas# Balan$e Cas# -u*flo&s './0enses() ("$ertisin) *an+ Ser$i e Char)es #ns,ran e #nterest -aintenan e . /epairs Pa0roll Sales Co%%issions Professional 1ees Co%%,ni ations E2,ip. /ent &ffi e S,pplies Per%its . 3i enses 4tilities . 5elephone 5ra$el 1u,*o*al -*#er Cas# -u* 2lo&s) Capital P,r hases 3oan Prin ipal &6ner7s 8ra6 &ther' 1u,*o*al To*al Cas# -u*flo&s .nding Cas# Balan$e

$819,432 $1,669,432 20000 5,000 25,000 9,000 9,000 288,503 41,040 5,000 8,000 96,000 5,000 10,000 96,000 10,000 $62!,543 450,000 150,000 40,000 0 $640,000 $1,26!,543 $401,889

$1,202,062 $1,603,951 22000 !,000 25,000 9,000 15,000 292,143 53,352 !,000 9,000 96,000 9,000 10,000 96,000 10,000 $660,495 500,000 150,000 60,000

$1,5!0,464 $1,803,920 20000 !,000 25,000 9,000 12,000 320,141 82,080 10,000 10,000 96,000 10,000 10,000 96,000 10,000 $!1!,221 550,000 150,000 100,000

$!10,000 $1,3!0,495 $233,456

$800,000 $1,51!,221 $286,699

Page 37 of 37