Executive Summary

Potential Business Venture into the U.S. Western Region

June 24, 2011 To: Mr. J.P. Roehm, VP of Business Development As an agent of White Construction, it is my fiduciary responsibility to represent the best interests of White Construction, and present opportunities that have the potential to positively affect the standing of White Construction. As such, please review the following proposal. It is my professional opinion that further expansion into the Western Region of the United States would serve as a viable and lucrative venture for White Construction. More specifically, as the driving economic force of the Western Region, and strategic location, Southern California would serve as a practical location for a Western Division. In order to mitigate capital expenditure and costs of blind recruitment, not only would this division absorb Whites California-based employees, it would have the potential to absorb a Southern California-based Construction Firm whose four hands-on Principals and Support Staff have a combined experience of over 170 years in General Engineering Construction. i) Why the Western Region The western region of the United States has a very generous potential for Renewable Energy Construction, as well as a generous need for Water and Wastewater treatment. With the supplies of fossil fuels decreasing and the popularity of Coal and Nuclear Power Plants waning, renewable energy is becoming a driving force in the Energy market, which has been reflected in the RPS of many states thus far. a. Water Treatment The western region of the U.S. has the largest percentage of land that is subject to drought; the need to recoup used water is high. It also has some of the highest per capita residential water use because of landscape irrigation within the arid climate. Municipal Wastewater Facilities have become commodities within this region, and continues to grow in number. Estimated project sizes range from $3MM to $100MM b. Geothermal The states of California, Arizona, New Mexico, Utah, Idaho and Oregon contain more than 90% of the U.S. Geothermal activity. California alone has 2570 MW of Geothermal Energy production, with 100s more expected to be tapped within the next few years. Estimated Project sizes range from $50MM to $500+MM c. Solar From California to Texas, the Southwestern region contains a very large portion of states within the U.S. Sun Belt. The potential for Solar PV and Solar Thermal plants in this region is very high. As an example, Arizonas Solana Solar Power Generating Plant will be one of the Worlds largest Solar Plants. d. Biomass The states of California, Oregon, Washington and Arizona hold the majority of areas in the U.S. deemed as Excellent Biomass Resource. As Biomass becomes more of an accepted form of Power Generation, the west coast resources are expected to be greatly utilized. ii) Why Southern California With the largest population and GDP in the United States, California is a strategic location for a subsidiary division. It would be important, however, to utilize the resources of California without having to incur the costs of doing business in Los Angeles, San Diego or San Francisco. For that reason, I believe it would be extremely beneficial to set up a location outside Los Angeles city limits, within an area known as the Inland Empire for the following reasons:
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a. The New Business Hub in California Although greatly affected by the recession, the Inland Empire is expected to be one of the fastest growing business centers of California; it would be a prime time to invest in this location while it is still a buyers market. b. 3 International Airports Ontario International Airport is located within the Inland Empire; John Wayne and LAX are both within 1-hour driving distance. 1-hour flights to Sacramento/San Francisco, Phoenix, Las Vegas and Salt Lake City are constantly running out of each Airport. Direct Flights from Ontario and LAX to Indianapolis are available as well. c. Geography Los Angeles and San Diego are within 40 miles and 110 miles, respectively of the Inland Empire; it has all the amenities of Los Angeles without the LA traffic and associated costs of LA business. Also, as stated above, 1-hour flights to most large cities within the Western Region are possible. It is also the closest state to Hawaii, which has a very aggressive Renewable Portfolio Standard (RPS). iii) Why the absorption of 4-Con Engineering: 4-Con Engineering is an Inland Empire-based corporation that was established in 1997. It quickly grew into a highly reputable Southern Californian Public Works Construction Firm, with project types ranging from Heavy Highway and Civil to Water/Sewer Treatment Plants. By far the largest asset 4-Con would bring to White would be the 115+ years of combined Construction experience of the 4 Principals. Each Principal brings a range of disciplines and talents. a. Richard J. Garabedian, P.E. - President & Chief Estimator i. 25+ Years working as a Senior Estimator and Project Manager. ii. California Registered Civil Engineer, background includes various types of fluid treatment plants and other mechanical facilities, flood control, drainage, heavy highway construction, seismic retrofit, and a variety of other types of projects. Formerly an Estimator for Kiewitt and Brutoco Construction. iii. Estimation Software: HCSS Heavy-Bid, b. Dieco J. DeAndrade, P.E. - Vice President and Senior Project Manager i. 25+ years working in Scheduling, Project Management and Project Engineering ii. California Registered Civil Engineer. Background includes various types of fluid treatment plants and other mechanical facilities, flood control, drainage, heavy highway construction, seismic retrofit, and a variety of other types of projects. iii. Project Management Software: Primavera Project Planner c. Fred E. Ecker Corporate Treasurer and Senior Construction Manager i. 35+ years working in onsite Project Management and Quality Assurance ii. Background includes heavy concrete structures, heavy highway construction, water / sewer treatment plants, flood control, storm drain improvements, bridgework and seismic retrofit, street improvements, and a variety of other types of projects. d. Cruz R. Borrero Corporate Secretary and Controller i. 30+ years working in Contract Management, Project Controls, Construction Accounting, Finance & Insurance, Legal & Contractual Compliance and Information Technology ii. Background includes all accounting functions and payroll, finance, prime contract and subcontract management and compliance, safety training and compliance, CPM scheduling, job cost and control, computers and networking, liaison with banking, bonding, insurance & legal relationships, and human resources iii. Job Cost and Project Controls Software: American Contractor (for Job Cost and Accounting) and Primavera Project Planner, Alpha 5 Database Software
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e. The Principals are further supported by a well-seasoned staff of: i. 2 General Superintendents (40+ years combined experience) ii. 3 Working Foremen (30+ years combined experience) iii. 1 Estimator iv. 1 Assistant Estimator / Proposal Manager v. 1 Accounting Manager vi. 1 Construction Mechanic / Yard Manager vii. 1 Administrative Assistant f. 4-Con Engineering has the further added benefits as a: i. Firmly established company with an excellent reputation minimal capital costs when compared to creating another division from scratch ii. Open Shop creates the opportunity for White Construction to be double-breasted, which opens more windows of opportunity. iii. Work Ethic 4-Con is highly accustomed to bidding in a very competitive and aggressive market with minimal time for preparation. This has prepared them to be extremely competitive in any given market while maintaining projected profit margins by conforming to stringent forms of Project Controls & Cost Management. iv) If you find this proposal to be of interest, I further propose to deliver to you the following: a. A fully comprehensive Business Plan developing this outline further, while including a visible outlook on the potential return on investment b. A fully comprehensive SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis c. Complete rsums of the Principals & Core Personnel d. Sample estimates and project experience e. A pipeline of potential projects on which 4-Con could promptly support White f. A fully developed presentation of the Business Plan and introduction to the Principals

Thank you very much for your time and consideration, Best Regards, Israel C. Borrero Project Engineer White Construction, Inc.

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