Annual Report — Form 10-K
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 10-K U.S. Technologies, Inc. 62 373K
2: EX-2.5 Amendment to the Stock Exchange Agreement 9 34K
3: EX-4.5 Amended Certificate of Designations 2± 10K
4: EX-4.6 Waiver Agreement 2 15K
6: EX-10.11 Industry Work Program Agreement 12 38K
7: EX-10.13 Lease Agreement 13 49K
8: EX-10.18 Industry Work Program Agreement 14 47K
9: EX-10.20 Stock Purchase Agreement 39 178K
5: EX-10.8 1999 Stock Option Plan, as Amended 9 42K
10: EX-21.1 Subsidiaries of the Registrant 1 6K
11: EX-23.1 Consent of Bdo Seidman, LLP 1 7K
12: EX-27.1 Financial Data Schedule 1 10K
EX-10.18 — Industry Work Program Agreement
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EXHIBIT 10.18
INDUSTRY WORK PROGRAM AGREEMENT
South Bay Correctional Facility and Moore Haven Correctional Facility
This agreement is entered into effective this 19 day of October, 1999,
by and between Wackenhut Corrections Corporation, 4200 Wackenhut Drive, Palm
Beach Gardens, Florida 33410, hereinafter referred to as the "OPERATOR", U.S.
Technologies Inc. 3901 Roswell Road, Suite 300, Marietta, Georgia 30067,
hereinafter referred to as the "INDUSTRY CONTRACTOR", and American Quantum
Cycles, 731 Washburn Road, Melbourne, Florida 32934, hereinafter referred to as
"AQ".
The "Prison Industry Enhancement Certification Program (PIE)", 18 USC
ss.1761(c) and "Inmate Labor and Correctional Work Programs, Chapter 946, F.S.
authorizes Adult Offenders (AO) to manufacture, repair and assemble products for
sale, or provide services pursuant to the contract with the public; and
The State's primary purpose of the PIE Program is to further the
State's effort in AO rehabilitation, provide vocational training under real
work settings, develop job skills and work habits and to qualify AOs for
employment upon release from the institution; and
The Correctional Privatization Commission (CPC) has entered into
Operations and Management Agreements with OPERATOR to provide correctional
services at the South Bay Correctional Facility (SBCF) and Moore Haven
Correctional Facility (MHCF). INDUSTRY CONTRACTOR is by this document, entering
into an agreement with OPERATOR to provide an industry work program at SBCF and
MHCF.
The INDUSTRY CONTRACTOR wishes to participate and enter into a
cooperative venture with the OPERATOR to assist the State in establishing an
industrial operations program at the SBCF and MHCF that can meet the objectives
of the PIE Program, and the State for AOs of the State.
Whereas, OPERATOR desires to train and employ AOs in a realistic
working environment and to provide a work program area to the Industry
Contractor for the purpose of establishing and maintaining a resident (inmate)
work program in accordance with all PIE Program and other applicable laws and
regulations.
Now, therefore, in consideration of the mutual benefits and covenants
hereinafter set forth, the parties hereby agree as follows:
1. Initial Term
The term of this contract shall commence on October 19, 1999 and shall
be for a minimum of seven years or as long as the OPERATOR is
contractually permitted to occupy the SBCF and MHCF, unless earlier
terminated pursuant to Section 8, set forth below.
In the event that U.S. Technologies becomes unwilling or unable (as a
result of termination of this Agreement or otherwise) to perform its
obligations under this Agreement, then AQ, upon written notice to
OPERATOR, shall have the right to assume the rights and obligations of
INDUSTRY CONTRACTOR hereunder.
2. Renewal Term
This agreement will automatically be extended for successive terms of
one year each unless either OPERATOR, INDUSTRY CONTRACTOR OR AQ
terminates this agreement by written notice to the other at least
ninety (90) days prior to the expiration date of the then current term,
or this agreement is otherwise earlier terminated, pursuant to the
provisions of Section 8 below mentioned.
3. Right of Occupancy/Occupancy Fee
A. OPERATOR hereby grants to the INDUSTRY CONTRACTOR and
AQ the right of occupancy in the designated Industry Buildings
at SBCF and MHCF (the "Buildings") and agrees to provide the
INDUSTRY CONTRACTOR with approximately 20,500 square feet at
each facility for Work Program activities, hereinafter
referred to as the AREA. The OPERATOR represents and warrants
that the Buildings shall be modified in accordance with the
plans and specifications furnished to OPERATOR by INDUSTRY
CONTRACTOR and AQ not later than thirty (30) days after the
OPERATOR has taken delivery of the equipment and that the
Buildings will be designed and maintained to conduct safely
the activities described in Section 4B. OPERATOR agrees to
work with INDUSTRY CONTRACTOR to negotiate any agreement to
expand the AREA for work program activities when necessary for
further expansion.
B. During this Term and the first renewal term
thereafter, INDUSTRY CONTRACTOR shall pay to OPERATOR the sum
of One Dollar ($ 1.00) per year. Occupancy fees for the
Renewal Term(s) shall be negotiated and approved
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by written agreement of the parties hereto at least one (1)
year prior to the expiration of the then Current term.
4. Occupancy Restriction
A. Nothing herein shall be construed as creating either
a rental agreement or a lease; the INDUSTRY CONTRACTOR may not
sublet, sublease, assign, or transfer this agreement or any of
its rights or obligations hereunder, nor may INDUSTRY
CONTRACTOR enter into any other agreement regarding the
occupancy herein granted, without the express prior written
agreement of OPERATOR. The occupancy of the AREA shall at all
times be consistent with the terms of this agreement regarding
work authorized and work hours.
B. The type of industry to be put into the AREA would
include, but not be limited to, polishing, painting,
fiberglass fabrication, assembly, inventory management and
quality control work associated with the production and
assembly of touring motorcycles for AQ. Work hours associated
with services shall be subject to OPERATOR approval.
5. INDUSTRY CONTRACTOR and AQ Obligations
INDUSTRY CONTRACTOR, AQ, hereby agree:
A. To employ AOs in various aspects of motorcycle
production and assembly as described in Section 4B above.
Specifically, the painting, polishing and fiberglass
fabrication will all take place at the SBCF (PHASE I) and all
assembly, in order to produce the finished product will take
place at the MHCF (PHASE II).
B. To provide and manage all of the labor force as well
as hire free-world employees to supervise the AOs working in
the PIE program at SBCF and MHCF.
C. That AQ shall provide supervisory and quality control
(QC) training and will also inspect the final product at the
MHCF before it is shipped to its ultimate destination.
D. That AQ shall repay OPERATOR for all of the capital
and other expenses, excluding build-out and installation
costs, but including freight if paid by OPERATOR, for PHASE I
equipment expenditures over seven years at an interest rate
of 11.0%. After OPERATOR has made all expenditures related
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to PHASE I, a payback schedule will be determined based upon
the aforementioned 11.0% interest rate and seven (7) year
term. OPERATOR will provide notice and itemization of all
expenditures as well as the payback schedule to AQ (but not
earlier than forty five (45) days after the AREA has become
operable). Payments will be made in quarterly installments,
with the first payment due forty five (45) days after
OPERATOR has provided expenditure and payback schedule
information to AQ. In the event of contract cancellation or
terminations prior to the end of the seven (7) year payback
period, all outstanding unpaid quarterly payments will become
due and must be paid to OPERATOR or assumed by AQ within
thirty (30) days of the date of contract cancellation or
termination. Title to the Equipment shall be taken in the
name of AQ, subject to the liens of OPERATOR, and OPERATOR's
lender to secure payment as above provided. The equipment for
PHASE I and its costs are set forth in Attachment A.
E. That upon successful implementation of PHASE I the
INDUSTRY CONTRACTOR shall contribute $175,000, OPERATOR shall
contribute $100,000, and AQ shall invest the balance of funds
for capital expenditures associated with Phase II. The capital
expenditures (including acquisition of equipment) required for
Phase II will be identified upon purchase. AQ agrees to repay
OPERATOR and INDUSTRY CONTRACTOR the sums of $100,000 and
$175,000 respectively, over seven years at an interest rate
11.0%. Payments will be made in quarterly installments, with
the first due thirty (30) days after notice of successful
completion of PHASE I and commencement of operations of Phase
II. In the event of contract cancellation or termination prior
to the end of the seven (7) year payback period, all
outstanding unpaid quarterly payments will become due and must
be paid to OPERATOR and INDUSTRY CONTRACTOR within thirty (30)
days of the date of contract cancellation or termination.
The financing will be secured by all equipment and leasehold
improvements acquired during Phases I and II.
F. That all materials, personal property, inventory
items, equipment, and/or fixtures or other property of any
kind or description whatsoever installed or brought into the
AREA by INDUSTRY CONTRACTOR, its agents or employees, shall be
at INDUSTRY CONTRACTOR's sole risk and neither the CPC,
OPERATOR, or any employees or agents thereof, shall be
liable for any damage or loss suffered thereto unless such
damage or loss arises out of the negligence, recklessness,
intentional or willful acts or misconduct of the CPC,
OPERATOR, or any of their agents or employees.
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G. That all permanent improvements or fixtures
permanently attached to the AREA shall become the property of
the real owner-in-interest of the building in which the AREA
is located, unless otherwise agreed in writing between all
applicable parties. The parties acknowledge that all raw
materials, work in process and finished good inventory is
owned exclusively by AQ.
H. That no additional alternations to the AREA may be
made by INDUSTRY CONTRACTOR without the prior written approval
of OPERATOR, which approval shall not be unreasonably
withheld.
I. That INDUSTRY CONTRACTOR and AQ, their employees and
agents will comply with all OPERATOR written policies and
procedures, (which first shall be furnished to INDUSTRY
CONTRACTOR and AQ) as well as all applicable federal, state,
and local laws, ordinances, and regulations, with particular
emphasis on federal and state wage and hour laws regarding
payment for work and other rules and regulations of the
federal and state agencies having jurisdiction over employment
relations. The INDUSTRY CONTRACTOR warrants that the
OPERATOR is not a secondary employer. The INDUSTRY CONTRACTOR
agrees that no goods produced under this Agreement shall be
placed in commerce in violation of the laws of the State of
Florida or the United States as they relate to the utilization
of prison labor and Prison Industry Enhancement Certification
Program requirements.
J. That all deliveries, shipments, and employees are
subject to search before entering or leaving the Facility
premises.
K. To keep the AREA clean, neat and orderly and to
promptly report any damage to the building structure, interior
fixture(s), or unsafe conditions to OPERATOR.
L. To properly maintain in safe working condition all
INDUSTRY CONTRACTOR installed equipment and fixtures.
M. That throughout the term of this agreement, INDUSTRY
CONTRACTOR shall be responsible for the cost of all
utilities and telephone service to INDUSTRY CONTRACTOR's
provided AREA, which utilities shall be sub-metered and billed
directly to INDUSTRY CONTRACTOR;
N. That all INDUSTRY CONTRACTOR and AQ employees and
agents assigned to the Area shall be subject to background
security checks by
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OPERATOR, and that OPERATOR shall have the right to deny
entrance to the AREA to any INDUSTRY CONTRACTOR or AQ employee
or agent reasonably deemed by OPERATOR to present a security
risk;
O. That all INDUSTRY CONTRACTOR and AQ employees
assigned to the AREA shall be obligated to successfully
complete the security training provided by OPERATOR;
P. In the hiring of all AO employees, comply with all
requirements of federal, state, and local non-discrimination
statutes and/or regulations. The INDUSTRY CONTRACTOR shall
provide the OPERATOR with job descriptions and personnel
procedures for all inmate jobs in the industry work program.
Q. To provide a non-inmate on-site supervisor at all
times AOs are working in the AREA and to provide for job
supervision and instruction to all hired AO employees. At
least one non-inmate free-world employee shall be provided for
the first twenty or fewer AOs employed. If the number of AOs
exceeds twenty, INDUSTRY CONTRACTOR will provide additional
non-inmates employees at a ratio they deem necessary to
properly supervise the inmate population, after consulting
with the OPERATOR.
R. To pay AO employees in accordance with Employment
Development Department (EDD) guidelines as developed for this
contract; at no time shall the pay rate be less than the
Federal Minimum Wage, or Florida minimum wage, whichever is
greater.
S. INDUSTRY CONTRACTOR shall be responsible for all
payroll functions and all tax and other legal deductions. Wage
payments shall be made not less often than semi-monthly in the
name of Florida Department of Corrections (DOC) for (inmate
name and DOC Number), and delivered according to instructions
provided by Florida Statute.
T. Inmates will be paid only for actual hours worked,
after they have successfully completed vocational/technical
training and have received fourteen (14) days of actual
on-the-job training. AOs will not be paid while they are in
training. Employed inmates will work or be in training at
least four (4) hours per day. The work hour schedules for all
AO employees assigned to the Industry work program shall be
established by OPERATOR, after consultation with the
INDUSTRY CONTRACTOR, and AQ and OPERATOR shall use its best
efforts to comply with INDUSTRY CONTRACTOR's and AQ's
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scheduling requests Overtime hours may be arranged, at the
request of the INDUSTRY CONTRACTOR, and AQ with prior approval
of OPERATOR.
U. That INDUSTRY CONTRACTOR shall, effective ninety
(90) days after the training period has been completed, employ
not fewer than ten (10) AOs working a minimum of twenty (20)
hours per week on a continuing basis. Subject to the
availability of qualified AOs within the facilities and the
volume of business, INDUSTRY CONTRACTOR shall use its
reasonable efforts to employ at least the minimum number of
inmates as referenced in Attachment B. Notwithstanding
anything to the contrary in this Agreement, INDUSTRY
CONTRACTOR and AQ shall have the right to reject or terminate
any AO for any reasons which do not constitute a violation of
federal or state laws. INDUSTRY CONTRACTOR shall give notice
and reasons of any adverse personnel action involving AOs to
OPERATOR within fourteen (14) days of any such action.
Further, INDUSTRY CONTRACTOR and AQ may increase or decrease
work levels at the facilities to reflect fluctuations in
orders.
V. That the employment of AOs will not, to the knowledge
of the INDUSTRY CONTRACTOR, result in the displacement of
employed workers within South Central Florida, that the AOs
will not be employed as strikebreakers or impair existing
contracts at other industries wherever situated, and that the
AOs will not be exploited in any form which might adversely
affect the community, the AOs, CPC or the DOC.
W. That the CPC, DOC, OPERATOR, and their employees or
agents shall not be held liable for any damage to Industry
Contractor or any third party arising from or related to any
work stoppage or resident lock downs regardless of the reasons
therefor.
X. To protect, defend, indemnify and hold harmless the
CPC, DOC, OPERATOR, and their employees or agents, from any
liability claims and damages arising from or relating to this
agreement unless such liability arises out of the
negligence, recklessness, intentional or willful acts, or
misconduct of the CPC, DOC, OPERATOR, or any of their
employees or agents.
Y To comply with all state and local license
requirements and pay all local personal property taxes.
Z. The INDUSTRY CONTRACTOR shall maintain insurance
coverage for its equipment, supplies and materials located in
the industries building against
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casualty occurrences. Further the INDUSTRY CONTRACTOR shall
maintain liability insurance coverage on itself, its agents,
servants and employees in an amount no less than $1,000,000
per occurrence for bodily injury and property damage liability
combined. The INDUSTRY CONTRACTOR shall also maintain workers'
compensation insurance on its employees in accordance with the
laws of the State of Florida and the PIE Certification
requirements. The INDUSTRY CONTRACTOR shall deliver to
OPERATOR a duly authenticated certificate evidencing such
insurance within sixty (60) days of execution of this
agreement, and upon each insurance renewal date.
AA. INDUSTRY CONTRACTOR shall indemnify and hold harmless
OPERATOR and CPC from any and all liability arising out of or
in connection with INDUSTRY CONTRACTOR'S use, production,
storage, or disposal of any "hazardous materials" or
"hazardous waste" hereinafter defined. OPERATOR shall have the
right to inspect and approve all storage and disposal
procedures.
"HAZARDOUS MATERIAL" shall mean any substance which is or
contains (i) any "hazardous substance" as now or hereafter
defined in 101(14) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended
("CERCLA") (42 U.S.C. 9601 et seq.) or any regulations
promulgated under CERCLA; (ii) any "hazardous waste" as now or
hereafter defined in the Resource Conservation and Recovery
Act (42 U.S.C. 6901 et seq. ("RCRA") or regulations
promulgated under RCRA; (iii) any substance regulated by the
Toxic Substances Control Act (15 U.S.C. 2601 et seq.); (iv)
gasoline, diesel fuel, or other petroleum hydrocarbons; (v)
asbestos and asbestos containing materials, in any form,
whether friable or non-friable; (vi) polychlorinated
biphenyl's; (vii) radon gas: and any additional substances or
materials which are now or hereafter classified or considered
to be hazardous or toxic under Environmental Requirements (as
hereinafter defined) or the common law, or any other
applicable laws relating to the Property. "Hazardous waste"
shall mean a solid waste, or combination of solid wastes,
which because of its quantity, concentration, or physical,
chemical, or infectious characteristics may (a) cause, or
significantly contribute to an increase in mortality or an
increase in serious irreversible, or incapacitating
reversible, illness; or (b) pose a substantial present or
potential hazard to human health or the environment when
improperly treated, stored, transported, or disposed of, or
otherwise managed. 42 U.S.C. 6903, as amended. INDUSTRY
CONTRACTOR shall be in compliance and current on all changes
to the above-referenced statutes and shall immediately comply
with any
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amendments to those sections or any statutes promulgated by
the State of Florida.
BB. Certificate of Good Standing. INDUSTRY CONTRACTOR
shall, on an annual basis, deliver to OPERATOR a Certificate
of Good Standing from the State of Florida Comptroller's
Office that indicates that INDUSTRY CONTRACTOR is current on
all taxes due.
CC. ACA Assistance. Where ACA accreditation is being
sought by OPERATOR, INDUSTRY CONTRACTOR shall comply with all
ACA standards applicable to the Industry Program and shall
collect and maintain the required documentation to assist
OPERATOR to achieve and maintain accreditation.
6. OPERATOR'S OBLIGATIONS
OPERATOR agrees to:
A. Provide INDUSTRY CONTRACTOR with the AREA described
in Section 3, and provide for project management and
supervision for all improvements in the AREA and the
installation of equipment.
B. Provide orientation training regarding OPERATOR
security procedures for INDUSTRY CONTRACTOR's staff,
employees, and/or agents located at or regularly frequenting
the Area.
C. Provide all appropriate security for the AREA and
other resident custody support.
D. Use its best efforts, including making arrangement
with correctional authorities for the relocation of AOs so
that all available jobs are filled, to provide INDUSTRY
CONTRACTOR with AO employees through OPERATOR's classification
system in a timely manner.
E. Serve as Trustee of resident employee payroll
accounts and to apply the proceeds of such accounts in
accordance with the terms of all-applicable Florida State
laws, regulations, and contract provisions.
F. Provide a mutually agreeable Vocational/Educational
training tailored to INDUSTRY CONTRACTOR's and AQ's needs
for initial pre-hire training through the OPERATOR's
Vocational/Educational Program. After
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AO successfully completes the training, he will receive
fourteen (14) days of on-the-job training before becoming
eligible for hire.
G. Assist in Hazcom Training of residents and INDUSTRY
CONTRACTOR's employees utilizing course materials to be
supplied by INDUSTRY CONTRACTOR. However, such assistance will
not reduce, diminish or otherwise waive any legal liabilities,
properly and legally the responsibility of INDUSTRY
CONTRACTOR.
7. Contingencies and other Obligations
This agreement shall be subject to only contingencies and additional
obligations if agreed upon and in writing by OPERATOR and INDUSTRY
CONTRACTOR.
8. Termination
A. Either OPERATOR, INDUSTRY CONTRACTOR or AQ, in its
exclusive discretion, may terminate its obligations under this
agreement upon thirty (30) day's prior written notice to the
others, provided, however, that if this Agreement is
terminated by OPERATOR, that INDUSTRY CONTRACTOR and AQ shall
be allowed one extension of up to six (6) months prior to the
termination under this provision in order to obtain a new
facility and relocate its equipment and operations thereto in
an orderly and business-like manner.
B. This agreement may be terminated or suspended on an
immediate basis by OPERATOR if it shall have been advised by
the DOC that its continuance would constitute a safety or
security risk to inmates, employees, third parties, or the
public or if CPC or DOC shall terminate all agreements with
OPERATOR.
C. In the event OPERATOR is terminated from its
operations and management agreements with the DOC or the CPC
to provide correctional services at either SBCF or MHCF, it
will use its best efforts to assist INDUSTRY CONTRACTOR and AQ
with help reasonably necessary to continue their operations
with the DOC and the CPC.
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9. Default by INDUSTRY CONTRACTOR
A material failure to keep, perform, meet or comply with any covenant,
agreement, term or provision of this Agreement to be kept, observed,
met, performed, or complied with by INDUSTRY CONTRACTOR hereunder,
which such failure continues for a period of sixty (60) days after
INDUSTRY CONTRACTOR has written notice thereof shall constitute an
Event of Default on the part of INDUSTRY CONTRACTOR. INDUSTRY
CONTRACTOR shall indemnify OPERATOR for all losses incurred by reason
of not being able to conduct the contemplated activities at the
Buildings.
10. Space Usage
In the event that the INDUSTRY CONTRACTOR does not utilize the AREA in
the most efficient manner to maximize work production and the number of
resident employees to be employed, the OPERATOR may, in its discretion,
remove from INDUSTRY CONTRACTOR'S use that amount of space in the Area
not being utilized. In the event of this circumstance, OPERATOR shall
give INDUSTRY CONTRACTOR written notice of its intention to reduce the
workspace made available to INDUSTRY CONTRACTOR. INDUSTRY CONTRACTOR
shall have ninety days after it has received written notice thereof to
more efficiently utilize the space to be removed from it by OPERATOR,
and at the same time, submit a plan to OPERATOR as to how that space
will be more efficiently utilized. If after the ninety days, the
INDUSTRY CONTRACTOR is still not utilizing the space in the most
efficient manner in accordance with OPERATOR'S expectations, that space
will be taken away from INDUSTRY CONTRACTOR and, in the discretion of
the OPERATOR, made available to itself or other INDUSTRY CONTRACTORS.
This provision of paragraph 11 shall apply only in the event that the
INDUSTRY CONTRACTOR is unable to comply with Section 5; otherwise this
Section 11 will not be applicable.
11. Default by OPERATOR
A material failure to keep, perform, meet or comply with any covenant,
agreement, term or provision of this Agreement to be kept, observed,
met, performed, or complied with by OPERATOR hereunder, which such
failure continues for a period of ten (10) days after OPERATOR has
written notice thereof, shall constitute an Event of Default on the
part of the OPERATOR, provided, however, that OPERATOR shall not be in
default if it is taking all reasonable actions to comply with such
agreement and that such compliance can be obtained in not more than
thirty (30) days. OPERATOR shall indemnify INDUSTRY CONTRACTOR and AQ
for all losses incurred by reason of not being able to conduct the
contemplated activities at the Buildings.
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12. Original Agreement
This Agreement may be executed in one or more separate counterparts,
each of which shall be deemed an original, but all of which together
shall constitute but one and the same instrument.
13. Complete Agreement
This Agreement contains all of the terms and conditions agreed to by
the parties involved. No other understandings, oral or otherwise,
regarding the subject matter of this Agreement shall be deemed to exist
or to be binding upon any party hereto.
14. Modifications
This Agreement may not be modified, altered or amended except by
written agreement executed by all the parties hereto.
IN WITNESS WHEREOF, the parties hereto affix their respective
authorization signatures effective the date first set forth above.
Wackenhut Corrections Corporation U.S. Technologies Inc.
(OPERATOR) (INDUSTRY CONTRACTOR)
By: /s/ Patricia McNair Persante By: /s/ Greg Earls
---------------------------------- -------------------------------
Patricia McNair Persante Greg Earls
Senior Vice President, Contracts President, Chairman and CEO
Date: 10-19-99 Date: 10-21-99
-------------------------------- -----------------------------
American Quantum Cycles, Inc.
(AQ)
By: /s/ Gary W. Irving
--------------------------------
Gary W. Irving
Chief Operating Officer
Date: 10-20-99
-----------------------------
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ATTACHMENT A
EQUIPMENT LIST FOR PHASE I
[Enlarge/Download Table]
COST
--------------
1. Special, Sidedraft, Pressurized, Dry Filter Automotive Paint Spray Booth $ 48,604.00
2. Paint Mix Room Special Non-Pressurized Dry Filter Industrial $ 6,186.00
3. Production Paint Spray Booth $ 5,865.00
4. Optional Air Make Up Unit for Production Booth $ 5,199.00
5. Super-Slave Gel-Coat Dispensing Equipment $ 7,128.00
6. Hankinson Refrigerated Air Dryer $ 1,252.00
7. Haz-Vault Hazardous Material Storage Locker $ 11,810.00
8. Haz-Vault Options $ 7,405.00
9. Spray Equipment $ 1,776.00
10. Installation of Items 1,2,3, and 4 $ 13,200.00
TOTAL INVESTMENT BASED ON QUOTE FROM LEE PATTERSON CO. $ 108,425.00
EQUIPMENT REQUIRED FOR START-UP OF POLISHING STATION
[Enlarge/Download Table]
Description Part Nos.* Qty. Unit Price
----------- ---------- ---- ----------
Air Tools:
90 Degree Angle Die Grinder 3Y495 10 $ 381.00 $ 3,810.00
High-Speed Die Grinder 3Y489 10 $ 268.00 $ 2,680.00
Dual Action Orbital Sanders 52345 10 $ 263.00 $ 2,630.00
Belt Sanders 1/2 x 12 3Y493 5 $ 505.00 $ 2,525.00
Floor Mounted Polisher:
Polisher 2Z341 10 $ 209.00 $ 2,090.00
Stands 4Z154 10 $ 80.00 $ 800.00
Polishing/tembler/deburr:
18 Lbs. Tumbler 6A898 2 $ 190.00 $ 380.00
45 Lbs. Tumbler 6A899 2 $ 374.00 $ 748.00
*All part numbers are out of Grainger
TOTAL POLISHING INVESTMENT $ 15,663.00
GRAND TOTAL $ 124,088.00
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MINIMUM AND MAXIMUM LABOR BY FUNCTIONAL AREA AND PRODUCTIVITY LEVEL (NUMBER
OF BIKES/MONTH)
[Enlarge/Download Table]
100 Bikes/Month 200 Bikes/Month 300 Bikes/Month
------------------------------------------------------
Paint Min Semi-Skilled Labor 4 8 13
MAX SEMI-SKILLED LABOR 15 30 50
Polishing Min Semi-Skilled Labor 3 5 8
MAX SEMI-SKILLED LABOR 10 20 30
Fiberglass Min Semi-Skilled Labor 3 5 8
MAX SEMI-SKILLED LABOR 10 20 30
Final Assembly Min Semi-Skilled Labor 13 26 39
MAX SEMI-SKILLED LABOR 52 104 156
Inventory Min Semi-Skilled Labor 3 6 9
MAX SEMI-SKILLED LABOR 12 24 36
------------------------------------------------------
Quality Control Min Semi-Skilled Labor 3 6 9
MAX SEMI-SKILLED LABOR 12 24 36
Grand Total Min Semi-Skilled Labor 15 30 46
MAX SEMI-SKILLED LABOR 111 222 338
ATTACHMENT B
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Dates Referenced Herein and Documents Incorporated by Reference
| Referenced-On Page |
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| This ‘10-K’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| Filed as of: | | 4/10/00 |
| Filed on: | | 4/7/00 |
| For Period End: | | 12/31/99 | | | | | | | NT 10-K |
| | 10/19/99 | | 2 |
| List all Filings |
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