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LRAC PKT 01-16-2013 c�TV a� '�... e �e ra a CDBG Loan Review Advisory Committee Agenda January 16, 2013 5:30 p.m. Hylebos Room 1. Call to Order Chair Evans 2. Roll Call Catalano 3. A roval of 11/14/12 Minutes Chair Evans I�� pp 4. Committee Member Reports Chair Evans 5. New Business Bartlett/Dunn a) Universal Cartridge Application Lead Reviewers - LRAC Team #1 — (Bartlett & Dunn) Action: Ratify Review Team Recommendation Re: Underwriting b) Loan Performance Reports Bennett 6. Old Business a) Change regular LRAC meeting date Bennett 7. Staff Reports a) Current Loan Fund Balances Bennett b) Loan Servicing Agent Agreement Bennett c) Mock Audit of CDBG Program Bennett d) Pending Applications Bennett 8. Adjournment CITY OF FEDERAL WAY LOAN REVIEW ADVISORY COMMITTEE SPECIAL MEETING SUMMARY NOVEMBER 4, 2012 COMMITTEE MEMBERS PRESENT: Graham Evans; Donald Bartlett; Keven Dunn; Frank Spicer; Mark Hutson. COMMISSION MEMBERS ABSENT: Lori DeVore. STAFF PRESENT: Jay Bennett, Community Services Manager; Amy Jo Pearsall, City Attorney; Dee Dee Catalano, CDBG/Human Services Coordinator. GUESTS: Rich Shockley, Highline Community College Small Business Development Center; Asbury Lockett, Highline Community College Small Business Development Center. CALL TO ORDER The meeting was called to order at 11:01 am. ROLL CALL Dee Dee Catalano took the roll. APPROVAL OF 9/28/12 MINUTES Keven Dunn moved approval of the October 2, 2012 minutes. Frank Spicer seconded the motion, which carried 3—0. NEW BUSINESS a) Review Application Review Process The Committee discussed the draft application review process in the packet. Jay Bennett introduced Rich Shockley and Asbury Lockett of the Highline Community College Small Business Development Center, noting that they will assist businesses in this process. In addition, a representative from the SBDC will be a member of the lead application review team. 1 OLD BUSINESS a) Commercial Loan Review Manual Handouts Jay Bennett distributed additional pages for the Commercial Loan Review Manual. b) Mock Loan Application Review Jay Bennett briefly reviewed the mock application before the Committee. Frank Spicer, lead reviewer for the mock application, discussed the strengths and weaknesses of the ' application. After discussion, as part of the mock review, Frank Spicer moved to recommend declining the loan request. Keven Dunn seconded the motion, which carried 4— 0. c) Evaluate Application Review Process The Committee discussed the review process for the mock application. Jay Bennett clarified that actual applications will be accepted in the order that they are submitted and will be considered individually. The Committee agreed that the lead review teams will be the following: Team #1: Donald Bartlett & Keven Dunn Team #2: Lori DeVore & Frank Spicer Team #3: Graham Evans & Mark Hutson Keven Dunn moved to approve the Commercial Loan Review Process as amended by removing Item #6. Frank Spicer seconded the motion, which carried 4-0. STAFF REPORTS a) Microenterprise Symposium Jay Bennett reported on a microenterprise symposium he attended with Community & Economic Development Director Patrick Doherty and said it was very informative. He also reported that the City and Highline Community College will host a breakfast for local lenders to market the City's loan programs. b) Loan Program Marketing Jay Bennett reported that Patrick Doherty and Rich Shockley gave presentations to the Federal Way Chamber of Commerce to publicize the loan programs. He also created marketing materials and dropped them off to local businesses. 2 Dee Dee Catalano said that the Committee's regular meetings will be the second Wednesday of the first month of the new quarter. The dates in 2013 will be: January 9, April 10, July 10, October 9. ADJOURNMENT The meeting adjoumed at 12:56 pm. NEXT MEETING Regular Meeting January 9, 2013 5:30 —7:30 pm Nyberg Room 3 t��!t v�'�kL ��I�'R I ��G� �� ,5� L (. L LOAN APPLICATION CHECKLIST � To process a loan application under the City's CDBG Commercial Loan Fund program, please provide the documents listed below. !I ✓ CDBG Loan Fund Application ✓ Business Plan(NOT required for existing businesses unless required by LRAC) ✓ Project Appraisal ✓ Business Financial Statements for the last three years-include Balance Sheet and "�`'� Proflt/Loss Statements for the last three years.Not required for start-ups. ✓ Current Business Financial Statements-Balance Sheet and Profit/Loss Statements for the interim period,dated within 60 days of the date of application ✓ Cash Flow Projection with assumptions for the next three years(include new jobs to be created and owners salary) ✓ Schedule of Business Term Debt-Totals must agree with current Balance Sheet and Profit/Loss Statement ✓ Business Federal Income Tax Returns-For the last three years,including all schedules � ✓ Personal Financial5tatements-Must be submitted for each proprietor. Must be less than 60 days old ✓ Personal Federal Income Tax Returns-For the last three years,including all schedules • ✓ Hazard Insurance Policy and Assignment � ✓ Opinion of Counsel/Loan Review Advisory Committee Recommendation � ✓ Employee Information-Job Requirements ✓ Other Creditor Information-Include commitment letter and copy of loan documentation ✓ Subordination Agreement(if applicable) ' ✓ Miscellaneous Items(i.e.existing leases,partnership agreements,Articles of Incorporation,By-Laws,etc.resume(s)of owner(s) ✓ Site�sit Reports ' ✓ Correspondence/Communications { i City of Federal Way R�cFl�FO CDBG COMMERCIAL LOAN APPLICATION c, D�C2420 N� h�of >2 ��n Se��esd/�,d y ; 1.APPLICANT INFORMATION ��sion Applicant: L/�o�d'� (�� Date: �Z�� 'Zol'Z Applicant's Home Address:�.� �-. K-tda2_ �c�` ot � /_`L'�3��O�Gl51C.. �� ,�� Q v S �`c� City: '��.D�2('�, �G�-�1 State: � Zip: ��0� Home Telephone No.:(2�(� ��a-�l�[f3 S Social Security No.:�-�-�► Business Name: V'n��6r� ��K� U'.S� �--�-� ' � , , Business Address: � �� S �,� �� ', Mailing Address: Business Telephone No.:(?�161 � a�q.-Ct`tg� Business Fax No.: ( 1 - Applicant E-mail Address: �JC�C�1^USA?_�oo ��x7.l�.v'�i� Bank of Business Account(Name/Address): ��- .�w,� ` Type of Business: i—,-�— Business/Taxpayer I.D. No.: ❑Sole Proprietorship ❑ Partnership ❑Corporation J$�Start-up 2. INFORMAT[ON ABOUT YOUR CREDIT REFERENCES List deposit accounts-Name and Address of Institution(s) Checkin� �,�1�t,��tM� � e �S��avt�g�� J'a"�-<��S-. , . Saving Credit Union List Outstanding Debts and Paid Accounts—List Names,Addresses,and BalanCes(use additional pages if necessary) Rent � Mortgage � , � Name Address Mo. Payment Balance ', Auto Name Address Mo.Payment Balance Other Name Address Mo. Payment Balance � Other Name Address Mo.Payment Balance 3. IIYFORMATIOIV ABUUT CO-APPLICANT, SPOUSE OR FURMER SPOUSE N ! I� � Name: Social Security No.: - - Address: - City State Zip Employer(Name/Address): Position/Title: Length: Mo.Income:$ 4. PROJECT SUMMARY Briefly describe the project you are seeking to finance.Use additional page if necessary. ��E- �. �}�,ti ` �Zs �v� � � �,� a� 4 � i 5. COMPANY INFORMATION Project or Servic Provi ed � �, �v� fi�- � � C�c�ir�4� �8 - --- ----- Primary Market l��-vvs�vr-,ss�, lL—�►..�w�uc�-� P�� . C�� ' How Long in Business? �� Current No.of Employees Size of Existing Facility (sq.ft.) Own ❑ Lease ❑ Description/Location Lease/or Purchase . Area(acres,square feet) Zoning Date Plans Completed Person or Entity Currently Holding Title No.of New Jobs to be Created No.of Jobs to be Retained 6. PROPUSED PROjECT COSTS Land * $ Building Construction and/or Modifications* $ Machinery and Equipment $ ��,('9 C� Working Capital $ �� t ZZ� Other(specify)�.�n4��'�f1�h�l�7`��""" $ � �� ` Other(specifyj��'�`b $ � dCaC� Total $ �� *See City staff—subject to federal regulations 7. PROPQSED PROJECT FUNDING Business $ Bank $ � � L , �'�� 2s s� n CITY CDBG Program $ ', � Other�n�� r C�1Vv , $ �C�O $ Total $ �-1� Da0 OCCUPANCY COS7S(Annual) Debt Service $ $ • Rent $ �l�� $ Taxes $ $ Maintenance $ $ � Insurance $ �p $ Other $ $ � TOTAL $ 2�-1 �1�v $ 8, DETAILS UN BUSINESS . Ownership(names of owner(s)and percentage of ownership) �a.r 1� G� �� - Name � % Name � Name � i I Insur�nce-Is ther�"key man"insurance? Yes ❑ No�if Yes, please�ive details: Is there life insurance on owners?Please give details: N 1�_ Succession:Please give details of succession in case of an unexpected death or incapacitation of owner or owners: �• - Are you or your business involved in any pending lawsuits?If so,please give details including name of case,case number,and nature of the suit. N �A � �Has applicant or any officer of the applicant ever been in receivership or adjudicated as bankrupt? Yes �No � if Yes,please give details: . If you have any debts or obligations in a name other than above or any debts or obligations not listed in Section 2, please describe on an attached sheet of paper. � Additional Information Required The foilowing information is required for CDBG Loan Fund applications. By supplying all the � necessary data,your application can be processed without delay. • Credit Check Authorization(attached) • Copies of Articies of Incorporation and Bylaws, Partnenhip Agreements, Busine�s Licenses or Fictitious Business Name Statement,as applicable • Financial Statements for the most recent year • Interim Financial Statements and comparable period for prior year • Signed Business Tax Return for previous along with income and expense statements for past three years • Signed Personal Financial Statement for each principal (owner, partner, primary stockholder) of the business. This form � is also available on-line at www.sba.gov/sbaforms/sba413.pdf _ • Signed Personal Tax.Return for the past three years Depending on your situation, we may also ask you to provide any or all of the foilowing information after review of your pre-application. • Copy of Accounts Payable aging • Copy of Accounts Receivable aging • Projected Income Statement,which forecasts of business expenses and revenue � Projected Balance Sheet • Projected Cash Flow • Resume for each business associate(owner,partner,primary stockholder) • Copy(s)of Purchase,Franchise Agreement(s),Lease and/or Trust Agreement • Schedule of Business Fixed Debt(attached) i (We) certify to the best of my knowledge that the above information and attachments are correct. I understand that funds are limited and acceptable of application does not guarantee a funding commitment or project approvals from the CDBG Loan Fund Program. 1 (We) authorize the City to o6tain all the necessary credit reports (business and personal)and inquiries to verify the accuracy of the above statements and to determine creditworthiness pertaining to this loan request. 1 also understand the City may provide a copy of this loan application and any additional materials to consultants and/or economic development loan underwriters contracted by the City to evaluate any and all information provided in this loan application. � - /,� �-0 i Z �Signature Da e C ��r-.--,�' ��►.rt�-� {Print Name) Signature Date (Print Name) FOR CITY OF FEDERAL WAY USE ONLY Date Application Submitted: � /2— Client Reference No.:�"" b4 ( CDBG Loan Amount Requested: National Objective that quatifies for CDBG investment? If Job Creation-No.of new jobs to be Created: No.of jobs to be retained: LRAC Review D�te: Action Taken: � Councii-Review Date: Action Taken: . CREDIT CHECK AUTHORIZATION _ Fair Credit Reporting Act As part of processing your application for an CDBG Commercial Loan Fund loan, we may request a consumer report bearing on your creditworthiness,credit standing,and credit capacity. This notice is given pursuant to the Fair Credit Reporting Act of 1970, Section 601 to Section 622, inclusive. You are entitled to such information within 60 days of written demand therefore made to the Credit Reporting Agency pursuant to Section 607(b)of the Fair Credit Reporting Act. .- , I �� G'� ��1 � �. Signature Date ��l "-� �i�%fh/1 (Print Plame) � Signature Date (Print Name) Business Plan Universal Cartridge USA, LLC December 20,2012 � �� i :.� �.. �� y �., _, _,'*..�,,, .s i-;�:;`��.: , y° ��'�"' ' `�� =�" �; ' = a s � ,;:,: °P� �� n: .:�..��-:.��.'�.`,t �.�:2M�µ.� . . a::�;.. 4 ��:: :�,�.::... �:: >:M .. .. ,. _.. x,-�`€_:.:�,.�.;;=��:. , .�. ...-:. , . ,. __ , . k.,;,�;,.a.�:,.; '.. `�.. _.... � ��n�,::;' _... ._._.,#. . � � Owner: Charles Gathu Universal Cartridge USA, LLC Barkley Ridge Apartment Homes 27830 Pacific Highway South#L101 Federal Way,WA 98003 Tel: 206-859-9486 1. Executive Summary Universal Cartridge USA, LLC("Universal Cartridge"or"the Compan�')will be launched In Federal Way in early 2013 to sell recycled, re-filled and remanufactured universally compatible ink jet and laser toner cartridges to individuals and businesses locally and in emerging export markets. The Company is requesting startup loan financing of$25,000 to launch the business.The Company anticipates reaching operational break even on approximately$80,000 in sales within nine months of launch and to have ample cash flow to support loan repayment assuming interest of 6.596 and term of 3 years.The Company requests that loan payments for the first six months of the loan term be interest� only to alleviate pressure on cash flow during the Company's startup. . As computer printers became more affordable, people started buying printers for home and small office use.Although the price for printers has continued to come down,the cost to replace ink cartridges or toner cartridges has remained expensive. Printer manufacturers have allowed printer prices to drop, hoping to recoup development costs through new replacement cartridge sales.This precipitated the birth of cartridge remanufacturing and refilling businesses. Cartridge refillers offer a low-cost, high quality,environmentally sustainable alternative to new OEM and private label replacement cartridges.Customers of refilled cartridges save money and save the environment.The worldwide ink and toner cartridge industry now represents a$30 billion market. Worldwide sales of printers is increasing by almost 15°Yo each year—especially in emerging markets in developing countries—further driving the growth of the industry. Refillers are putting a dent in the new OEM cartridge replacement business of the printer manufacturers, holding about$1 billion in sales and growing at a rate of about 18%per year. Mr.Gathu brings to Universal Cartridge over 20 year experience in the ink and color industry, knowledge of home and office computer and printing equipment,and strong ties to the business community in East Africa. He will be in a strong position to provide a valuable service, build the business and contribute to tMe local economy and tax base. 2. Description of$usiness Universal Cartridge is a Washington State limited liability company to be located at First Way Plaza, 33442 First Way South, Federal Way,WA 98003.Charles Gathu is the Company's sole owner and operator.A copy of the Company's certificate of formation is attached as Appendix 1. Universal Cartridge will be launched in early 2013 to sell recycled, re-filled and remanufactured universally compatible ink jet and laser. toner cartridges to individuals and businesses locally and in emerging export markets. Since 2010, Mr.Gathu has been refurbishing and selling used computers to people in his community who cannot afford to buy a new computer.This has been an informal side-business.This business complements the cartridge re�lling business and will be formally folded into and under Universal Cartridge,with initial inventory of approximately 20 refurbished computers that will retail for about $150 each. 1 � Page 3. Products Universal Products will initially focus on three products: ink jet printer cartridges, laser toner cartridges for small printers and laser toner cartridges for large printers. It is important to note the different types of printers currently on the market.Some printers come with a built in print head,so when you replace the cartridge you are changing just an ink tank.Some printers use cartridges which have the print head integrated into the cartridge,so every time you change a cartridge in these printers,you install a new print head.These cartridges are expensive because of the extremely complex technology with which every single cartridge is produced.These are the cartridges that are worth re�lling because the print heads can be used several times without compromising the print quality. (Source:www.QuickfillOnline.com.) Ink jet printer cartridges are mostly used for home and personal office use.A refilled ink jet printer ' cartridge can be produced at a cost of about$.99 and sold competitively for$10.The price for a new OEM ink jet printer cartridge runs from$20 to$25 at Staples or Office Depot. Laser toner cartridges are used for both small home printers and medium sized printers typically used by ' business o�ces.A remanufactured laser toner cartridge for a home printer can be produced for about � $2.70 and sold competitively for$15,compared to$30 to$45 for a new OEM cartridge at Staples or Office Depot.A remanufactured laser toner cartridge for the typical office printer can be produced for about$6.15 and sold competitively for$30,compared to$60 to$80 for a new OEM cartridge at Staples or Office Depot. All products sold by Universal Cartridge will be backed by a 1��no risk quality guaranty. 4. The Cartridge Refill Industry Background As computer printer-s became more affordable, people started buying printers for home and small office use.Although the price for printers has continued to come down,the cost to replace ink cartridges or toner cartridges has remained expensive.Printer manufacturers have allowed printer prices to drop, hoping to recoup development costs through new replacement cart�idge sales.This precipitated the birth of cartridge remanufacturing and refilling businesses. Market Size and Trends The worldwide ink and toner cartridge industry now represents a$30 billion market.Worldwide sales of . printers is increasing by almost 159'o each year—especially in emerging markets in developing countries —further driving the growth of the industry. Virtually every home and business has an inkjet or laser printer. More computers and digital devices mean a higher demand for affordable printers. Most of these printers use cartridges that can be refilled or remanufactured at a fraction of the price of buying a new OEM or private label replacement cartridge. 2 � Page Refillers are putting a dent in the printer makers' business. Market analysts at Lyra Research in Newton, Mass.,which specializes in this industry,said that the manufacturers of OEM replacement cartridges have about 79 percent of the $30.1 billon printer supplies business.The high-volume"remanufacturers," which supply stores with refilled cartridges,have about 18 percent of the market.The retail re�llers were doing about$1 billion in business, but growing at a rate of 18 percent a year. Digital photography also has a significant impact on the industry.A report from lyra Research finds that worldwide revenue from at-home printing of photos captured by digital camera has a projected growth from$7.1 billion in 2003 to$9.9 billion in 2009,a compound annual growth rate of 9 percent.The comprehensive report,Consumer Photo-Printing Market: Where Digital Photos Will 8e Printed,examines consumer photo-printing behavior and forecasts where digital camera owners will print the photos they capture—at home,at retail, or online. "The majority of digital camera photos will continue to be printed at home,which is good news for inkjet printer and supplies vendors:sales of ink cartridges and photo paper will increase," explained Robert Palmer,director of Lyra's Digital Photography Advisory Service. Anecdotal evidence indicates that in developing countries the demand for ink and toner cartridges is increasing as a result of rapid increases in standards of living and the increased use of computers and printers in homes and businesses. Nairobi, Kenya, is the largest commercial center in East and Central Africa.All of Kenya, Uganda,Tanzania, Rwanda, Burundi and South Sudan rely on Nairobi for most of their business supplies.The combined population of these countries now totals about 150 million people–almost half the pop�ulation of United States.Currently,consumers in this market are replacing cartridges with new OEM replacements from HP and others,as well as private label replacements from China.The high costs of these products,and issues concerning the quality of the private label products from China,are driving customers to seek out less expensive quality alternatives. The "Green Business" Market Market research shows that more than 80%of people currently throw away their used cartridges and buy new ones. Printer cartridge recyclers can potentially capture as much as 70�0 of the printer cartridge aftermarket.According to research by IPSOS Worldwide of Chicago,three times as many consumers would rather refill their empty cartridge than buy a new one.According to the same research,54�a of consumers have indicated their preference for saving money by having their empty inkjet cartridges refilled. Environmental issues are making headline news almost every day.The average consumer is more aware of global warming,concerned about energy consumption, rising gas prices, pollution,and other environmentat issues. Demand for"green" products is at record levels and growing.The environmental case for recycling and refilling print cartriclges is compelling: • It takes about a gallon of oil to make a new laser cartridge. • Almost 8 cartridges are thrown away per second in the United States alone. • In IVorth America alone,over 350 million cartridges per year are discarded in our landfills,and that number increases by 12 percent annually. • A laser cartridge thrown into a landfill can take up to 450 years to decompose.Some components made of industrial grade plastics will take over a thousand years to decompose. • Every remanufactured cartridge saves nearly 3 1/2 pounds of solid waste from being deposited in landfills. 3 � Page • In one year, if the worid's discarded cartridges were stacked end-to-end,they would circle the earth over three times. Source:www.QuickRefillOnline.com Potential Customers Business customers will likely be responsible for the bulk of the Company's sales. Businesses will be easier to cater to than individual consumers since the cartridges can be shipped in bulk or picked up and delivered on a schedule. More importantly, businesses use large volumes of ink and toner cartridges for their printing needs and,therefore,are likely to save a lot of money by using refilled cartridges.The Company will specifically target its marketing to businesses that tend to do a lot of printing,such as graphic design firms,architecture firms,engineering firms,advertising firms,and photographer businesses.The Company estimates that,once fully up and running,about SO�o of business to business sales will be export sales to East Africa and other export markets. Competitors Universal Cartrid e's direct com etitors include other refillers that re clin and remanufacturin ink' g p cy g g �et and toner cartridges for business and home use locally and in East Africa.The two primary direct competitors serving the local market are Cartridge World and Costco. Indirect competitors include(1) � the printer manufacturers that sell new OEM replacement cartridges, (2)the compatible generic or private label new replacement cartridges,and (3)the do-it-yourself options. As the discussion below ' indicates, Universal Cartridge compares favorably to its direct competitors and offers unique advantages to the products sold by its indirect competitors. Unique Value Proposition Comparison to other cartridge refillers:Consumers and businesses alike evaluate cartridge refillers on the basis of customer senrice,quality,value,and convenience. . Does the cartridge perform as well as a new cartridge? Universal Cartridge will provide professional service, high quality refills and a 100%guarantee. . Is it reasonably priced?There needs to be a price savings, but note that very low prices imply low quality. tJniversal Cartridge projects savings of about 35%to 50�savings which is about right for the industry. • How long will I wait? Universal Cartridge will provide just-in-time senrices to its domestic market and initially direct ship to overseas markets with 2-3 day delivery time. �n addition,a big challenge in the cartridge refilling industry is operators out for a quick buck. Honesty-- for example,telling a potential customer that his cartridge is worn out and can't be properly refilled—is extremely important to refilled cartridge customers. In order for the refilling industry to gain full acceptance and trust, it needs entrepreneurs who are committed to operating ethically and producing a quality product. Universal Cartridge will hold itself to the highest standards of business ethics and Mr. 4 � Page Gathu's knowledge of the industry,customer service background, and professionalism will serve him well in this area. The chart below compares Universal Cartridge to these other larger direct competitors across a number of factors considered important to consumers: Cartridge World Costco Staples Universal Cartridge Price Savings 459�0 30%-40% 45�o SO�Yo Quality 100%Guaranty Unknown Unknown 100�Yo Guaranty Delivery Time Customer drop off Customer drop off Customer drop off Just in time/delivery Exports No No No 509'o exports Customer Service Good Good Good Excellent Convenience On site only On site only On site only Pick up/delivery Civic Engagement None None None High Personal Touch Low Low Low High Comparison to New OEM Replacement Cartridges:Cartridge refillers offer a low-cost, high quality, environmentally sustainable alternative to new OEM replacerrrent cartridges: • Universal Cartridge will help others save money. Refilling printer cartridges saves money for both individuals and companies that rely on vast quantities of printing to run their businesses. • Universal Cartridge will be helping.the environment by reusing empty inkjet and toner cartridges, rather than having them end up in the local landfills. � • Universal Cartridge will build goodwill in the�community.The Company will conduct fundraisers for community organizations,such as schools,Scouts,churches,etc. by having them collect empty inkjet and toner cartridges-helping the communities, helping the environment,and getting a supply of empty cartridges to refill. Comparison to compatible generic or private label new replacement cartridges:A"compatible" cartridge is an ink container that is newly manufactured based on the design of the original cartridge and is devised to perform just as well as the original brand name cartridge.To avoid patent infringement issues, makers commonly make slight alterations in the design.The ink-deployment technology inside the cartridge, however, is basically the same:either thermal(uses heat to disperse ink)or piezoelectric (uses electric pulses).Compatible cartridges raise patent infringement issues and,especially for those manufactured in China, have issues concerning quality. Comparison to dait-yourself options:In this option,the original equipment manufacturer(OEM) cartridge from the printer is reused, not by refilling stores, but by the users themselves.Stores sell do-it- yourself refilling kits,which provide the materials needed to refill the empty cartridges as well as step- by-step instructions. By allowing the cartridge owners to do the refilling, ink suppliers are able to avoid legal questions and still sell their cheaper inks to people trying to reduce printing costs. Unfortunately, do-it-yourself refilling kits are messy, inconvenient and often ineffective.The quality of these do-it- yourself cartridges is greatly.compromised,adding to the bad reputation of cartridge refilling- remanufacturing. � S � Page 5. Marketing and Sales The Company has budgeted $2,000 for initial marketing costs to include a logo, business card, brochure, and a website with e-commerce functionality.Thereafter,the monthly marketing budget is$500 for the first three months of operations and then continues at$300 for the remainder of the first year.The Company believes this will be sufficient for the proposed marketing strategies. The Company will use the following strategies to promote the business to its target market: 1) Developing a logo,business card and brochure and other marketing collateral. 2) Posting brochures and business cards in office parks or commercial areas where business people I pass by or congregate as well as bulletin boards at community centers and churches. � 3) Using a vehicle sign with the Company logo, name and contact information to promote the � business wherever the car is parked or driven. ' 4) Cold calling area businesses to jump start business-to-business sales. � 5) Joining the Southwest King County Chamber of Commerce,the Federal Way Chamber of ' . Commerce,the African Chamber of Commerce and other groups to network with potential � � business customers. 6) Setting up a business website to promote the business to anyone who is looking for ink or toner cartridge refills. 7) Low cost advertising in local business publications, local community newspapers and flyers, church community bulletins and school district announcements. 8) Developing a fund raising opportunity for schools,church groups,and community non-profits, where the Company will offer a fixed price to refill all the spent cartridges that participants can collect from their community. Participants pick up spent cartridges from parents,friends and local businesses,and return with a refill in exchange for payment. 9) For export sales, Mr.Gathu will tap into his extensive contacts with stationery and computer supplies businesses in Nairobi he developed during his time in the stationery printing business. He will also network with businesses connected to Seattle's African Chamber of Commerce, where he has already made cootact with two Chamber members who are interested in shipping the Company's products to their contacts in Senegal and Ghana. 10) Offer the highest ethical standards,a quality product,and premium customer service, recognizing that the biggest challenge the print cartridge refilling industry faces is operators who are out for a quick buck. � 6 � Page There will be three primary sales channeis: • Refill or Exchange—Individuals and small business can have spent cartridges refilled or exchange spent cartridges for refills at the Company location. • Pick-up and Delivery—For local business customers with substantial and consistent orders,the Company will develop a weekly route, picking up spent cartridges at the customer's location and dropping off refills, perhaps for a monthly fee. • E-Commerce—Both local and international customers can purchase refills on the Company's website. • Export Sales—The Company will ship to contacts in Nairobi, Kenya for distribution throughout Kenya, Uganda,Tanzania, Rwanda, Burundi and South Sudan. Initially, products purchased by international customers will be shipped by United States Postal Service, UPS, FedEx,or other courier service. Shipping and insurance will generally be charged to the customer. As export volume increases,the Company will work with a freight forwarding company to assist with partial-container shipping,through the customers' brokers in the receiving ports.To the extent necessary,the freight-forwarding company can assist in obtaining a documentary letter of credit for larger orders that require payment of all or a portion of the purchase price upon delivery to the customer. The pricing of the Company's products will be competitive with other refillers and generally about 35% to 509�o below the prevailing retail price of a new OEM product available at retailers such as Staples or Office Depot. . 6. Management and Personnel Mr.Gathu brings to Universal Cartridge over 20 year experience in the ink and color industry, knowledge of home and office computer and printing equipment,and strong ties to the business community in East Africa. Prior to coming to the United States in 2002, Mr.Gathu worked as a technical manager for Kengraphic Kenya,a printing ink manufacturers located in Nairobi, Kenya.There he developed wide experience in the print industry—from initial ink formulation,to quality control and end-user customer service. He has worked in all�elds of printing inks,including package printing, newspaper printing, stationary,textiles and more. He has received technical training in Europe with well-known world companies including BASF,a world-recognized German manufacturing company that is a leading producer of dyestuffs and pigments for printing ink production,as well as Buhler Brothers in Switzerland and KVK in Denmark. He has tested and used produce from Sun Chemicals,a leading U.S. manufacturer of pigments and dies for ink and paints,as well as Degussa Corporation,the wo�ld's leading producer of carbon black,the pigment used for black ink and paints.With this knowledge and experience, Mr.Gathu will be able to put Universal Cartridge in a strong position to produce quality products at competitive prices. In addition to his experience in the ink and color industry, Mr.Gathu has had valuable work experience since immigrating to the U.S. in 2002. He worked for UPS parcel delivery for S years and with FedEx Kinko's print and customer service for 1.5 years. He also purchases used computer equipment which he 7 � Page refurbishes and sells at affordable prices to newcomers and others in his community who cannot afford to buy new computer equipment. He currently has an inventory of about 20 computers and 2 printers that he plans to contribute to Universal Cartridges. For customers purchasing Quickfill Ontine refilling equipment,Quickfill Online offers free professional cartridge�efilling training for inkjet and toner cartridges and ongoing technical support.The training program is designed to provide all the technical know-how needed for operating the refilling equipment. Although there are training videos for those who cannot participate in person,Quickfill Online suggests that more is gained by being at the live training where participants can ask questions,see demonstrations and have a hands-on experience with the equipment and supplies. Mr.Gathu plans to partieipate in the training in person and has included the expense of travel and lodging in his startup cost projections. Mr.Gathu has far reaching interests. He is currently chairman of GREEN ENERGY AFRICA,a nonprofit organization in Washington involved in educating youth to take care of the environment in Africa and around the world. He has written two short novels published by XLIBUS Publishing and currently � available through Barnes and Noble and Amazon (State House Conspiracy and In and Out of Darkness). The Company will add employees as sales increase,initially on a part-time basis.The Company will seek out"thinking"people capable of understanding and adapting the variety of different cartridges on the market.All new employees will be personally trained by Mr.Gathu and subject to well-developed Company policies and procedures. The Company will make an effort to develop a network of advisors,including the following: •. Marketing Collateral and Website Development: Highline Design Alliance. • Business Training and Technicaf Assistance: Highline Community College's StartZone Program. • Banking: Business bank account to be established at Boeing Employee's Credit Union • Lender:The City of Federal Way Commercial Loan Fund 7. Operation Plan � Facilities . The Company plans to lease a small office space of approximately 90 square feet at First Way Plaza, 33442 First Way South, Federal Way,WA 98003.The space and location is well suited for the operation of the business.The lease is for a one-year term renewable at the Company's option. Rent is$225 per month and includes all utilities and garbage and maintenance and cleaning of all common spaces including restrooms. No tenant improvements will be required to set up operations.There is parking available for costumers. Because most sales will be to business customers over the Internet or by pick- up and delivery, a highly visible location on International Boulevard is not required.The proposed location is central to Federal Way businesses and can be easily located by the Company's customers. The Company does not anticipate challenges in finding a new location if necessary to accommodate growth or customer demands.A copy of the proposed lease agreement is attached as Appendix 2. B � Page The Refilling Process Refilling ink jet cartridges will be done using a QuickFill XL12 and will consist of the following steps: 1) The cartridge will be given a "footprint test"to see if the print head has dried up. 2) The cartridge will be cleaned with special solutions that allow the print heads to open again if previously clogged. 3) The cartridge will then be filled with the appropriate type and amount of ink that is specific to your cartridge requirements. 4) After refilling,the cartridge will be put into a printer and tested 3-7 times to assu�e the highest quality standards. 5) After successful testing,the cartridge will be packaged and returned or delivered (personally or by mail)to the customer. Re-manufacturing taner cartridges will be done using the QuickFill Toner Dust Collector and will consist of the following steps: 1) Cartridges will be completely disassembled. . 2) Every part of the cartridge will be cleaned and inspected for damage. 3) After replacing the parts that are damaged or worn,the�artridge will be reassembled. 4) The cartridge will then be filled to its capacity with toner specific to the cartridge requirements. . 5) The cartridge will then be tested in a printer for ten to twenty pages to assure the highest quality standards. 6) After successful testing,the cartridge will be packaged and returned or delivered (personally or . by mail)to the customer. Using the equipment mentioned above,the Company can produce 40 re�lls per hour.The Company's safes forecast assumes a volume of about 2,000 units per month by the end of the first year of operations.The Company estimates that it can produce this quantity in about 50-60 hours. Supptiers . There are many sources of the inks and other supplies required by the Company. For example,Quickfill Online claims that it offers a complete line of bulk inks,toners,chips,tools,packaging supplies and other - supplies for printer and toner refill and remanufacturing businesses. (Source:www.QuickfillOnline.com.) Empty cartridges(known in the industry as"co�es")are readily available.The financial projections included in this business plan assume that the Company will buy new cores,which are readily available through clearinghouses and Internet auctions.There are also clearinghouses that sell used empty cartridges that have been cleaned, re-furbished and made ready for re�lling. In addition,the Company can (1)collect empty cartridges and toners free of charge from a variety of sources such as office surplus businesses, (2) provide a discount on a refilled cartridge for customers who return empty cartridges,and (3)refill empty cartridges supplied by customers.Any of these alternatives to purchasing new empty cartridges will.improve the Company's profit margins. Inks available to refillers have improved. Quickfill Online claims that its compatible inks are no different than the origina)inks with respect to its production pr.ocess,copy quality,fusing,color reproduction, ink 9 � Page density,yield and cartridge functionality. (Source: www.QuickfillOnline.com.j The Company wiil initially purchase those inks compatible with the most popular cartridges and the largest installed base of equipment.Other inks will be purchased as the refill opportunities arise. In general,the Company will be able to cover the cost of a pint of ink for these lower-volume cartridges with the sale of three or four cartridges. Training For customers purchasing their refilling equipment,Quickfill Online offers free professional cartridge refilling training for inkjet and toner cartridges and ongoing technical support.The training program is designed to provide all the technicat know-how needed for operating the re�illing equipment.Although there are training videos for those who cannot participate in person,Quickfill Online suggests thaf more is gained by being at the live training where participants can ask questions,see demonstrations and have a hands-on experience with the equipment and supplies.Mr.Gathu plans to participate in the training in person and has included the expense of travel and lodging in his startup cost projections. . 8. Financial Plan Personal Financial Information Mr.Gathu's finances are modest and relatively slmple.His wife lives in Nairobi and is financially independent.His children are g�own and live on tfieir own. He lives within his means,has little personal debt,and a small positive net worth. A personal financial statement and tax returns for 2009,2010 and 2011 are attached as Appendix 3. Mr.Gathu currently works as a care provider for the elderly.Although his hours vary from month to month,his average monthly salary is about$2,400.He expects to be able to continue working at this job during the Company's startup.He expects to be able to live off of the income from the Company within the first year of the Company's operations. Startup Expenses and Capitalization The Company estimates that it will need$30,000 to capitatize the launch and operation of the business through break even. Equipment $12,a00 Initial Inventory and Supplies $ 5,774 Marketing $ 2,000 Other Startup Expenses $ 3,275 Working Capital $ 5,951 Contin�encies 1�0 TOTAL $30,000 Mr.Gathu will make in in kind contribution to the Company's capital valued at approximately$5,000, including(1)20 refurbished computers having an estimated aggregate value of$3,000,(2)a supply of 10 � Page empty print cartridges having an estimated aggregate value of approximately$1,000, and (3)two printers for use in the business with an estimated aggregate value of approximately$1,000.The Company is seeking a loan in the amount of$25,000 for the remaining capitalization. The primary startup expense is for the equipment required for cartridge refilling.The Company will purchase the startup kits for a QuickFill XL12 and QuickFill Toner Dust Collector.A detailed quote for each of these items is attached as Appendix 4. Sales Forecast A 12-month sales forecast is attached as Appendix 5.The forecast anticipates no sales in the first month of operations with a gradual increase as the Company begins to implement its marketing strategies.The Company targets$30,000 in monthly sales by the end of the first year and assumes operations will continue at that level through the end of the third year of operations.The Company expects that in the second and third years of operation,approximately 5096 of its revenue will derive from export sales. Sales will likely include a small amount from sales of refurbished computer equipment; however,these sales are not included in the forecast. Cash Flow A 12-month cash flow projection is attached as Appendix 6.Available cash declines in the first three months of operations until sales begin to pick up in the fourth month of operations.At its lowest,there is still$1.68 in available cash for every$1.00 of loan principle and interest due.Cash flow is expected to allow Mr.Gathu to start taking an owner's draw of$1,000 per month in the fourth month,increasing to , $4,000 by the end of the first year of operations and continuing through the second and third years of operations. Principle and interest on the startup loan will be the largest overhead expense item.The monthly loan payment was calculated based on a$25,000 loan for a three year term at 6.5�interest.The cash flow projections assume monthly principle and interest payments from the first month of the loan term,with debt to income ratio never dropping below 1.6:1. Nonetheless,the Company requests that loan payments for the first six months of the loan term be interest only to alleviate pressure on cash flow during the Company's startup. The three next largest monthly cost items include rent, marketing costs and business related travel costs. A copy of the proposed lease agreement is attached as Appendix 2 and a copy of a quote for the insurance required by the lease agreement is attached as Appendix 7.Total annual overhead in the first year of operations is expected to be about$26,000,or an average of about$2,200 per month.The Company expects that these operating costs will support projected sales of$30,000 per month through the second and third years of operations. The cost of goods sold in the cash flow projection assume that the Company will be purchasing"cores" or empty cartridges new on the spot market.To the extent that the Company is able to�nd free or no cost cores available at office surplus depots or through fundraising efforts,this will only improve his profit margin per unit. 11 � Page - Break Even The Company anticipates reaching operational break even on approximately$80,000 in sales within nine months of launch and to have ample cash flow to support loan repayment assuming interest of 6.5%and term of 3 years. A break even analysis is attached as Appendix 8. Future Plans The Company anticipates approximately$65,000 in available cash at the end of the first year.The Company plans to use this in the second year of operations to purchase new and higher capacity equipment(approximately$40,000), retiring the original equipment for use as a backup during maintenance and repairs. If sales volume remains steady,the Company may in the second or third year of operations hire employees and look for a storefront with more visibility and space to pursue retail sales to individuats in addition to business-to-business and export sales. 12 � Page Appendices Appendix 1— LLC Certification of Formation Appendix 2—Lease Agreement for First Way Plaza Appendix 3— Personal Financial5tatements and Tax Returns Appendix 4— Equipment Quotes Appendix 5—Sales Forecast Appendix 6—Cash Flow Projection Appendix 7— Insurance Quote Appendix 8— Break Even Analysis 13 � Page . 603 247 620 b FILED State of Washington SECRETARY OF STATE SAM REED Secretary of State October22, Zo,2 CORPORATIONS DIVISION James M.Dolliver Building , STATE OF WASHINGTON 801 Capitol Way South PO Box 40234 Olympia WA 98504-0234 360.725.0377 Initial Report Application ID 2516184 ' Associated App ID 2516171 Entity Name LJNIVERSAL CARTRIDGE USA LLC UBI Number Corporation Type Limited Liability Company Tracking ID 2408667 Validation ID 2281101-002 � Date Submitted for Filing 10/22/2012 Filing Due Date State of Incorporation WA ' Inc./Qual Date 10/22/2012 Nature of Busiaess printer cartridge recycle Contact Information � Contact Name CHARLES GATHU Contact Address 636,8TH ST NE# 119 AUBURN WA 98002 Contact Email abconusa2000@yahoo.com Contact Phone 206-859-9486 m e � Registered Agent Information Agent is Individual Agent Name CHARLES GATHU Agent Street Address 636,8TH ST NE# 119 AUBURN WA 98002 Agent Mailing Address Same as Street Address Agent Email Address abconusa2000@yahoo.com Place of Business Place of Business is in US Yes Street Address 636,8TH ST NE# l 19 AUBURN WA � 98002 � Member/Manager Member#1 Name CHARLES GATHU � 636,8TH ST NE# 119 AUBURN,WA � 98002 � Execution Informatio� Executed By charles gathu �� ST�TES pF A�� i� �jC'� ��STATE O� � O � � � �� W � �� _ y �� 'L 1889 1�0 seCretary o� ,�tate I, SAM REED, Secretary of State of the State of Washington and custodian of its seal, hereby issue this - CERTIFICATE OF FORMATION . . - to � UNIVERSAL CARTRIDGE USA LLC a/an WA Limited Liability Company. Charter documents aze effective on the date indicated below. Date: 10/22/2012 UBI Number: 603-247-620 .� STATL� �'� 0� Given under my hand and the Seal of the State ,� ,;;. � of Washington at Olympia, the State Capital O �� a '�� w x � �� . Sam Reed,Secretary of State .�•� �� issg �°y COMMERCIAL LEASE This lease is made between: First Way Plaza, LLC, 33442 First Way South- Suite #201, Federal Way WA, 98003 herein called Lessor, and XXXX, herein called Lessee. Lessee hereby offers to lease from Lessor the premises situated in the City of Federal Way, County of King, State of WA, 98003, described as Suite #104 -which is approximately 90 square feet at 33440 First Way South, Federal Way, WA 98003, upon the following TERMS and CONDITIONS: 1. Term and Rent. Lessor demises the above premises for a term of One Year, commencing 7an 1, 2013, or sooner as provided herein at the rental rate of Two Hundred Twenty Five Dollars ($225.00) per month payable in equal instaliments in advance on the first day of each month for that month's rental, during the term of this lease. All rental payments shall be made to Lessor, at the address specified above. If the Lessee desires to begin occupying the space earlier than the beginning of a calendar month, a daity-pro rata (based on 30 days) rent will be assessed. Rent shall be payable in advance on the ist of each month. Rent payments shall be considered late if received (postmarked or in the hand of the Lessor) after the 5th of the month. (Unless the 5"' is a holiday, in which case payment shall considered late after the first business day of the holiday) A late fee of$50.Ob dollars (or 5% on the monthly rent, whichever is greater) wili be assessed for each week rent is overdue. If Rent has not been paid within 30 days the Lessee shall be considered to be ln default. la. Rent Adjustment. On the annual anniversary of the initiation of this lease, the Lessor shail reserve the right to increase the monthly rent in direct proportion to the percentage increase in the Consumer Price Index over the past 12 months. [The index name is: Consumer Price Index � for All Urban Consumers, Seasonally Adjusted: All Items (code: CPIAUCSL)] The index value 3 months prior to the commencement and anniversary date shall be used for the calculations. 2. Use. Lessee shall use and occupy the premises for office space. The premises shali be used for no other purpose. Lessor represents that the premises may lawfully be used for such purpose. 2a. Common Areas - Lessee shall have access to the common areas as defined as the entry area near the main doors as well as use of the bathroom and kitchen area. 3. Care and Maintenance of Premises. Lessee shall, at its sole expense, maintain the Premises in good condition and promptly make all repairs and replacements, whether structurai or non- structural, necessary to keep the Premises safe and in good condition, including ail utilities and other systems serving the Premises. Lessor shail maintain and repair the Building structure, foundation, exterior walis, and roof, and the Common Areas. Lessee shall not damage any demising wall or disturb the structural integrity of the Premises and shall promptly repair any damage or injury done to any such demising waits or structural elements caused by Lessee or its employees, agents, contractors, or invitees. If Lessee fails to maintain or repair the Premises, Lessor may enter the Premises and pertorm such repair or maintenance on behalf of Lessee. In such case, Lessee shail be obligated to pay to Lessor immediately upon receipt of demand for payment, as additional Rent, all costs incurred by Lessor. Notwithstan.ding anything in this Section to the contrary, Lessee shall not be responsible for any repairs to the Premises made necessary by the acts of Lessor or its agents, employees, contractors or invitees therein. Upon expiration of the Lease term, whether by lapse of time or otherwise, Lessee shall promptiy and Page 1 of 7 Initials Lessor Initials Lessee peacefully surrender the Premises, together with all keys, to Lessor in as good condition as when received by Lessee from Lessor or as thereafter improved, reasonable wear and tear and insured casualty excepted. 4. Alterations. Lessee shall not, without first obtaining the written consent of Lessor, make any alterations, additions, or improvements, in, to or about the premises. 5. Ordinances and Statutes. Lessee shail comply with all statutes, ordinances and requirements of all municipal, state and federai authorities now in force or which may hereafter be in force, pertaining to the premises, occasioned by or affecting the use thereof by Lessee. 6. Assignment and Subletting. Lessee shall not assign this lease or sublet any portion of the premises without prior written consent of the Lessor, which shall not be unreasonably withheld. Any such assignment or subletting without consent shall be void and, at the option of the Lessor, may terminate this lease. 7. Utilities. Lessor shall provide the Premises the following services: water and electricity for the Premises seven (7) days per week, twenty-four (24) hours per day, and heating, ventilation and air conditioning from 7a.m. to 6p.m. Monday through Friday, and as separately agreed upon for Saturday and Sunday, holidays and evenings, and shali provide}anitorial service to the common areas of the Premises and Building one (1) nights each week, exclusive of holidays. Lessee shall furnish and pay, at Lessee's sole expense, all other utilities (including, but not limited to, telephone and cable service if available) and other services which Lessee requires with respect to the Premises, except those to be provided by Lessor as described above. Notwithstanding the foregoing, if Lessee's use of the Premises incurs utility service charges which are above ordinary usa e Lessor reserves the ri ht to re uire Lessee to a a reasonabie additional char e for such 9 , 9 4 P Y 9 usage. For example, where Lessee instails and uses a number of electronic devices which is greater than normal, the increased usage may result in higher electrical charges for cooling since overheating of rooms may result. 7a. Internet access. Internet access shall be provided by the Lessor. Lessee understands this is a `common' internet access which is not designed for heavy usage such as video conferencing, VOIP, or web hosting/streaming and is`common'for all the tenants of the building and as swch will NOT be as secure as internet access individually purchased by the Lessee. Furthermore Lessor will not guarantee uptime but will make best efforts to resume access once learning of any interruptions. 7b. Gar6age and Recycle. Lessor shall provide garbage and recycling service to the Lessee. It is expected the volume and type of waste will be commensurate with an office/professional � setting and excessive use of this service may require an additional charge. 8. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter upon the premises at any reasonable time, for the purpose of maintaining or inspecting the same, and will permit Lessor at any time within sixty (60) days prior to the expiration of this lease, to place upon the premises any usual "To Let" or "For Lease" signs, and permit persons desiring to lease the same to inspect the premises thereafter. 9. Possession. If Lessor is unabie to deliver possession of the premises at the commencement hereof, Lessor shall not be liable for any damage caused thereby, nor shall this lease be void or voidable, but Lessee shall not be liable for any rent until possession is delivered. Lessee may Page2of7 Initials Lessor Initials Lessee i i II terminate this lease if possession is not delivered within Thirty (30) days of the commencement of �' the term hereof. � 10. Indemnification. Lessee shall defend, indemnify, and hold Lessor harmless against all liabilities, damages, costs, and expenses, inciuding attorneys' fees, arising from any negligent or wrongful act or omission of Lessee or Lessee's officers, contractors, licensees, agents, servants, ' employees, guests, invitees, or visitors on or around the Premises as a result of any act, omission or negligence of Lessee, or Lessee's officers, contractors, licensees, agents, servants, employees, guests, invitees, or visitors, or arising from any breach of this Lease by Lessee. Lessee shall use legal counsel acceptable to Lessor in defense of any action within Lessee's defense obligation. Lessor shall defend, indemnify and hold Lessee harmless against all liabilities, damages, costs, and expenses, including attorneys' fees, arising from any negligent or wrongful act or omission of Lessor or Lessor's officers, contractors, licensees, agents, servants, employees, guests, invitees, or visitors on or around the Premises or arising from any breach of this Lease by Lessor. Lessor shall use legal counsel acceptable to Lessee in defense of any action within Lessor's defense obligation. The provisions of tHis section shall survive expiration or termination of this Lease. 11. Insurance. a. Liability Insurance. During the Lease term, Lessee shall pay for and maintain commercial general liability insurance with broad form property damage and contractual liability endorsements. This policy shall name Lessor as an additional insured, and shall insure Lessee's activities and those of Lessee's employees, officers, contractors, licensees, agents, servants, employees, guests, invitees or visitors with respect to the Premises against loss, damage or liability for personal injury or death or loss or damage to property with a combined single limit of , not less than $1,000,000, and a deductible of not more than $5,000. The insurance will be non- contributory with any liability insurance carried by Lessor. b. Lessees Insurance. During the Lease term, Lessee shall pay for and maintain replacement cost fire and extended coverage insurance, with vandalism and malicious mischief, and earthquake endorsements, in an amount sufficient to cover not less than 100% of the full replacement cost, as the same may exist from time to time, of all of Lessee's personal property, fixtures, equipment and lessee improvements. c. Miscellaneous. Insurance required under this Section shall be with companies rated A-V or � better in Best's Insurance Guide, and which are authorized to transact business in the State of Washington. No insurance policy shall be cancelled or reduced in coverage and each such policy shall provide that it is not subject to cancellation or a .reduction in coverage except after thirty (30) days' prior written notice to Lessor. Lessee shall deliver to Lessor upon commencement of the Lease and from time to time thereafter, copies or certificates of the insurance policies required by this Section. In no event shall the limit of such policies be considered as limiting the liability of Lessee under this Lease. d. Lessor Insurance. Lessor shall pay for and maintain standard form extended coverage fire insurance of the building shell and core in the amount of their full replacement value, and such other insurance of such types and amounts as Lessor, in its discretion, shall deem reasonably appropriate. In addition to the foregoing, in the event Lessee fails to provide or keep in force any of the insurance as required above, Lessor, in its discretion, may provide such insurance, in which event, the cost thereof shall be payable by Lessee to Lessor as additional rent on the first day of the calendar month immediately following demand therefore from Lessor. e. Waiver of Subrogation. Lessor and Lessee hereby release each other and any other lessee, their agents or employees, from responsibility for, and waive their entire claim of recovery for any loss or damage arising from any cause covered by insurance required to be carried by each of � Page 3 of 7 Initials �essor Initials Lessee them. Each party shall provide notice to the insurance carrier or carriers of this mutual waiver of subrogation, and shall cause its respective insurance carriers to waive all rights of subrogation against the other. This waiver shall not apply to the extent of the deductible amounts to any such policies or to the extent of liabilities exceeding the limits of such policies. 12. Eminent Domain. If the premises or any part thereof or any estate therein, or any other part of the building materially affecting Lessee's use of the premises, shall be taken by eminent domain, this lease shall terminate on the date when title vests pursuant to such taking. The rent, and any additional rent, shall be apportioned as of the termination date, and any rent paid for any period beyond that date shall be repaid to Lessee. Lessee shall not be entitled to any part of the award for such taking or any payment in lieu thereof, but Lessee may file a claim for any taking of fixtures and improvements owned by Lessee, and for moving expenses. 13. Destruction of Premises. In the event of a partial destruction of the premises during the term hereof, from any cause, Lessor shall forthwith repair the same, provided that such repairs can be made within sixty (60) days under existing governmental laws and regulations, but such partial destruction shali not terminate this lease, except that Lessee shall be entitied to a proportionate reduction of rent while such repairs are.being made, based upon the extent to which the making of such repairs shail intertere with the business of Lessee on the premises. If such repairs.cannot be made within said sixty (60) days, Lessor, at his option, may make the same within a reasonable time,�this lease continuing in effect with the rent proportionately abated as aforesaid, and in the event that Lessor shall not elect to make such repairs which cannot be made within sixty (60) days, this lease may be terminated at the option of either party. In the event that the building in which the demised premises may be situated is destroyed to an extent of not less than one-third of the replacement costs thereof, Lessor may elect to terminate this lease whether the demised premises be injured or not. A total destruction of the building in which the premises may be situated shall terminate this lease 14. Lessor's Remedies on Default. If Lessee defaults In the payment of rent, or any additional rent, or defaults in the performance of any of the other covenants or conditions hereof, Lessor may give Lessee notice of such default and if Lessee does not cure any such default within 5 days ( for rent ), 15 days ( for other defaults) after the giving of such notice (or if such other default is of such nature that it cannot be completely cured within such period, if Lessee does not commence such curing within such 5 days and thereafter proceed with reasonable dii.igence and in good faith to cure such default), then Lessor�may terminate this lease on not less than 5 (five) days' notice to Lessee. On the date specified in such notice the term of this lease shall terminate, and Lessee shali then quit and surrender the premises to Lessor, but Lessee shall remain liable as hereinafter provided. If this lease shail have been so terminated by Lessor, Lessor may at any time thereaf�er resume possession of the premises by any lawful rrieans and remove Lessee or other occupants and their effects. No failure to enforce any term shall be deemed a waiver. 15. Security Deposit. In addition to $225.00, which represents the frst month's rent, Lessee shall pay Seven Hundred Twenty Five Dollars ($725.00) as last month's rent and damage security deposit for the performance of Lessee's obligations under this lease, inciuding without limitation the surrender of possession of the premises to Lessor as herein provided. This security deposit shall not be implied to be the maximum liability a Lessee may accrue in this contract. If Lessor applies any part of the deposit to cure any default of Lessee, Lessor shall demand a payment from Lessee the amount so appiied so that Lessor shall have the fuil deposit on hand at all times during the term of this lease. If during the course of this contract the monthly rent is increased due to Inflation adjustments or other factors, the Lessor reserves the right to demand an increase in the security deposit on a pro-rata ratio of the security deposit to the monthly rent. Page.4 of 7 Initials Lessor Initials Lessee 16. Attorney's Fees. In case suit should be brought for recovery of the premises or for any sum due hereunder, or because of any act which may arise out of the possession of the premises, by either party, the prevailing party shail be entitled to all costs incurred in connection with such action, including a reasonable attorney's fee. 17. Waiver. No failure of Lessor to enforce any term hereof shall be deemed to be a waiver. 18. Notices. Any notice which either party may or is required to give, shall be given by mailing II the same, postage prepaid, to Lessee at the premises, or Lessor at the address specified above, or , at such other places as may be designated by the parties from time to time. 19. Heirs, Assigns, Successors. This lease is binding upon and inures to the benefit of the � heirs, assigns and successors in interest to the parties. 20. Option to Renew. Provided that Lessee is not in default in the performance of this lease, Lessee shall have the option to renew the lease for an additional term of 12 months commencing at the expiration of tlie initial lease term. All of the terms and conditions of the lease shall apply during the renewal term except that the monthly rent shall be the sum of$ --- ( to be determined). The option shall be exercised by written notice given to Lessor not less than sixty (60) days prior to the expiration of the initial lease term. If notice is not given in the manner provided herein within the time specified, this option shall expire. 21. Subordination. This lease is and shall be subordinated to all existing and future liens and encumbrances against the property. 22. Hazardous Material. Lessor represents and war.rants to Lessee that, to the best of Lessor's knowledge, there is no "Hazardous Material" (as defined below) on, in, or under the Premises as of the Commencement Date except as otherwise disclosed to Lessee in writing before the execution of this Lease. If there is any Hazardous Material on, in, or under the Premises as of the Commencement Date which has been or thereafter becomes unlawfully released through no fault of Lessee, then Lessor shall indemnify, defend and hold Lessee harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses including without limitation sums paid in settlement of claims, attorneys' fees, consultant fees and expert fees, incurred or suffered by Lessee either during or after the Lease term as the result of such contamination. Lessee shall not cause or permit any Hazardous Material to be brought upon, kept, or used in or about, or disposed of on the Premises by Lessee, its agents, employees, contractors or invitees, except in strict compliance with all applicable federal, state and local laws, regulations, codes and ordinances. If Lessee breaches the obligations stated in the preceding sentence, then Lessee shall indemnify, defend and hold Lessor harmless from any and all claims, judgments, damages, penaities, fines, costs, liabilities or losses including, without limitation, diminution in the value of the Premises, damages for the Ioss or restriction on use of rentable or usable space or of any amenity of the Premises, or elsewhere, damages arising from any adverse impact on marketing of space at the Premises, and sums paid in settlement of claims, attorneys' fees, consultant fees and expert fees incurred or suffered by Lessor either during or after the Lease term. These indemnifications by Lessor and Lessee include, without limitation, costs incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work, whether or not required by any federal, state or local governmental agency or political subdivision, because of Hazardous Material present in the Premises, or in soil or ground water on or under the Premises. Lessee shall immediately notify Lessor of any inquiry, investigation or notice that Lessee may receive from any third party regarding the actual or suspected presence of Page 5 of 7 Initials Lessor Initials Lessee Hazardous Material on the Premises. Without limiting the foregoing, if the presence of any Hazardous Material brought upon, kept or used in or about the Premises by Lessee, its agents, employees, contractors or invitees, results in any unlawful release of Hazardous Materials on the Premises or any other property, Lessee shall promptly take all actions, at its sole expense, as are necessary to return the Premises or any other property, to the condition existing prior to the release of any such Hazardous Material; provided that Lessor's approval of such actions shall first be obtained, which approval may be withheld at Lessor's sole discretion. As used herein, the term "Hazardous Material" means any hazardous, dangerous, toxic or harmful substance, material of waste inciuding biomedical waste which is or becomes regulated by any local governmental authority, the State of Washington or the United States Government, due to its potential harm to the health, safety or welfare of humans or the environment. The provisions of this Section shall survive expiration or termination of this Lease. Page6of7 Initials Lessor Initiais Lessee 23. Entire Agreement. The foregoing constitutes the entire agreement between the parties and may be modi�ed only by a writing signed by both parties. The following Exhibits, if any, have been made a part of this lease before the parties' execution hereof: Exhibits A Signed by Lessor Signed by Lessee Signed Signed Printed Printed Date Date Contact information: Address Phone Email, V 3.0 CPIAUCSL — Consumer price index value Date — August, 2012 Value — 230.102 Page 7 of 7 Initials Lessor Initials Lessee ��B�S�ti, OMB APPROVAL NO.3245-0188 ?' �� EXPIRATION DATE:8/31/2011 � `` � PERSONAL FINANCIAL STATEMENT , _ - ,� ' o��'lSTRP�10 u.s.sMa.�susx�ess anMiN�s�rwanoH �� co�pi� �a�'""'.P.iietQr�,�"`o..�r(2�eaiCh�xrHtad paitiie{wSa, � �2�'�r�i►ro�e`±�tere��a' "�.!!��1�6°ai�e,►".O[Y3}�f�l S�0(�CIl01d�,,,,t�8.r 20°h-or, .w �>or 4 raon:ur�eii8 "rovid' a �loaban. '.,.' .�,, r.,r. '�: �� `:{�z,"�`z�.� Name �"i,�`�-S �'f'�` \�"�� Business Phone�j�r g S 1` C�� Residence Address �'t�3 0 ��t. �1'� S��, � �'C3� Residence Phone c�r.s�te,a z�c� ;�`c��,� w�-� w A � �U b3 susi�ess Name otApplicantlBorrower �N \��--�-5 q�t� C P�-\iL�'fl�t� U�S'� �..�—� z}. 4 .;�;:;�s'�-: ,��'. =*. 'q&8ETS, /',.r�y./'��"w��w '- , . �;"i��a;- j i��iL1Ti� � �.. . . . n i v� d.'i.a..M:.�T4•� a' 1OI�P�tR�ni�a �1 .�2`a b' y��5... .�4°• �� VIIUI V{'n�� . .t. .. .. . . . .. ._..=.- .. .. . . ., i. . ..e<... . -t. - Casho�hand&rciBanks .......... ..... 3 {�.�1� Aao�tsPayabie-------...---......._..... t Savings Accoimis••------•--•---•••----- S Notes Paya6le to Banks and Others............. $ IRA or Other RefiremeM Account........... S (Describe in Seclion 2j AccouMs�Notes Recetvable.............. S InstaNment Aocaunt(Au[o)....-----._....----, s � Life Ir�ursnce-CBSh Sutrender Vakte Only.... S Mo.Paymerus S (Campiete SecUon 8) InslaNmer�Acaount(Other)---------•------... S StodcsandBonds-----------•-----•---- s Mo.PaY�� E (Descrtbe in Section 3) Loan on l.ife Msurance...................... S . RealEstate...-----•.................. s MortgagesonRe�Estate ---...-•---....----• E Ov (Desa{be M Sectlon 4j (Describe M Sectior►4) Automobile-Present Value...............•- s �'S�lt llnpaid Taxes -------------........_....... S � Other Personaf ProperlY---•-•--......_._. S l'�� (Descrtbe in SecYron 6) (D�dbe in Section 5) Other Uabilitias ...................•-----•- E �C a Othe�Assets.......................... S A a o a (Des�ibe in Sectbn T) (Describe in Sedton 5) Total Uab�ies.............. '. S �� { Net Worth .......................•------- � Tota1 a Tatat S SsieNNcwt 1: Souit�e of in'eome Gonfiriq'sit`t lialiNitlis , _ _.._._. � ....__.. _. Salar�r•............................•- �:t: 5b O Q►�-� Endorser w Co-Maker --- 3 ...............•- Netlnvestmentlncome------------------- i LeyalClakns�Judgments-----------•-•----.. S Rea!Esta�e k�oome------------•--------• S Provlsion for Federal Inoome Tax............... S Olher hxnme(Desaibe below)`_..._..----- i OUier Speciai Debt......................... S Desciiptbri�-�1t1 Inoome,i`ri Section 1. . .. or chfid ~ pa need not be�sdosed M'Other In�me'uWess,ft b desked�hsve such oo�xded tovvaM lotal inwrt�e. Sectlon 2.Notes Pay�le W Banks and Others. (Use att�chmer►ts�neeessary.Each attactrrieM must be i�ed ss a part of this statement and signed•) Name and/lddress�Notet�olde�(s) �nce Air�t (rrFionmy,�.y �Type�Co�aEtera�O� � SBA Fortn 413(1Q-08)Ptevious EdiNon:O�ol�te (tumble) rnis ram was slecronicaYy aod�cea ey EGte Fadua�Forma.Mc. •••••••••'••••�,1•1•••••••~• Sectlon 3. Sfocks and Bonds.(Use attachrtEents H necessary. Each attachment miist be Iderifified as a part af this statement and sig`"ned): Num4er of Stiares Name of Sec�uities Cost Mailiet V'akJe' � Date of Totai Value QuotstioNExctia QuotatiorilEuchan SecUOn,4:R�,Eatete':Owried. (List each pa►cei separajeiy: Use at�Chment it��,ry,.?Eacti 8ilt'achinent rriiut tie ideritffied as a part:' ° ' :roka:_�:,,..e �i. '°'q ' Of�'N$Sid't@(fl�fit 8f1f�. � k"�'��:�`"�� . .> " 'iCr. . , .. . . . ,rXi+.u�.B',Z � � � ..�,� . :°ti:�'�0. ' Propeity,4, , P�Y TYP�s�� e"`;:;s .—�hn L--� l � 9�'��°�'�s"�+^ b'"�r�.��c:y.•ea"r.:. � �� g 'J V ( �� 1`�IOK_ NOW48$`•'' ¢ ' f i.�..A�„p 4��y'M' �4 . t � ' � � �p��`��`` � "' stni it� �•w�, �a �-E?�-�" -- 1� 0 E' 'h'l "' � r`.�,'��1'�,�°�b�N e � �. :.;� .. � �� !.G.�Sp` . �� Pie,se`�`i�t._ Vaiue� � � • x` "a?.d'w „�a*: " � `'�;•t��,m--� '": ., :Of, "Hol�(- ��p�b'P��,nt N'tunber �-^:��s:-�:. d,'�.��. .,�,� . . Anio�int ot Pa�rtnen�per T.Monthi`f�as * , . , :..e �y� Statu`s of.IrAortg�ge. SscBon S.Other Percatai Propsrty s�d Other Assots. (Oestx�e,and if any b pledged as sectrNy.,sts�te oame arn!eddress of Iien taldef.amo�mt of lieo,temu (iC�if `r•; � o it..e�.�b tsh� � �S�-`�'°Q f oMS�r-S t So .— �pc,o t� � � 2 Q�z..� , �ct.s � i aa v ,�s� .�CSO F�-w��P�' �- P2='��t,�.t=S 4 z`Cti N L=,2 S � l'Oba il�S +) Sec�a►6. Unpaid Taxaa. (Desc�ibe�detai,as to type,to whom payable,when d�,anwurrt,a�d to what property,ii arry,a tax Ren atlaci»s.) � 3acdon T. dther LisbiYt�s. (Describe in cieta�.) `c�R.!�-c.-.r�o l.��,r� n.o--�v-�w-e S'�— W'c) �v SaWon 8. Lit�I�urance Heid. (Give fxe amount and cash sixrender vafue of poYcies-name of insuranex company and b�ficiaries) 1 authorize SBAtLender b rnake lnquiries as necessary to veriFy tlie accuracy of the statemerds made and to detertnine my c�etiiMrortfi�ess.I�rtffy the abo�re arni ihe statemenfs cantained in the attach�nts are Uue and accurate as of the stated data(s).These staatements are made for fhe purpose of aillier obWining a ban or guararReeing a loan.I understand FALSE statements may resuft in forfeihxe of benefits and possible prosecution by the U.S.Attomey General (Reference 18 U.S.C.1Q01). . . Signat�e: Date:io'�- ?� t Sociai Security Numbe Signature: Date: Scefal Securfty Number: PLEASE NOTE� The eslimated averope burden hours for the coinpietio�of this form is 1.5 fiours per response.if you have quesUons or comments concemiog this esUmate or any other aspect of this ir+formatton,pFease coMact Chief,Administretive Branch,U.S.SmaU Beealness � Admi�hation,WasfdrgWn.D.G.20416,and Geararue Officer,Pap�Reducdon Project(32�6-0188),Otfice of pr�nagemani mb BuOpef, Washington,D.C.20503.PLEASE 00 NQT SSPlD FORkfS 70 OMB. Electronic Filing Instructions for your 2011 Federal Tax Return Important: Your taxes are not finished until all required steps are completed. l � . CHARLES T GATHU 636 8TH STREET NE , Apt. 119 AUBURN, WA 98002 � � ealance � Your federal tax return (Form 1040) shows a refund due to you in the Due/ � amount of $502.00. Your tax refund should be direct deposited into Refund � your account within 7 to 14 days after your return is accepted. The � account information you entered - Account Number: 905651543 Routing � Transit Number: 325070760. I I Where'S My ( Before you call the Internal Revenue Service with questions about Refund? � your refund, give them 7 to 14 days processing time from the date � your return is accepted. If then you have not received your refund, � or the amount is not what you expected, contact the Internal Revenue � Service directly at 1-800-829-4477. You can also check www.irs.gov , n � �� and select the Where s m refund. link. I Y � I No � No signature form is required since you signed your return Signature � electronically. Document � Needed � � I I WhatYOU � Your Electronic Filing Instructions (this form) Needto ( Printed copy of your federal return Keep � ( I I 2011 � Adjusted Gross Income $ 28,718.00 Fedel'a! � Taxable Income $ 8,289.00 Tax � Total Tax $ 828.00 Return � Total Payments/Credits $ 1,330.00 Summary � Amount to be Refunded $ 502.00 � Effective Tax Rate 2.88� I Page 1 of 1 Q I I ,I ' � C��,�u� Quote �� . PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill,SC 29715 10/31/2012 2564� Ph: 704-780-4878,Fax: 704-5041449 Sold To Ship To 1NKJET SUGGESTED PACKAGE 10-31-12 Terms P.O,No. Rep . PREPAY Lou Item Description Qty Rate Total EQUIPMENT: QFill-XL.12 Inkjet 151ines Refill Machine 1 2,950.00 2,950.00 Scalelnkjet Digital Scale for Inkjet Carnidge Measurement 1 49.00 49.00 UltrasonicHe Ultrasonic Heated print head cleaning Machine 1 179.00 179.00 QuickSteam Q�ickSteam Cleaner . 1 79.00 79.00 Sealer Cartridge Bag seaier.l2' 1 99.00 99.00 - ResetterCanonPGI... Canon CLI-8/PGI-5 Resetter 1 19.90 19.90 ResetterCanon220... Resetter for PGI-220BK and CLI-221BK/GM/Y.USB 1 29.00 � 29.00 charge(USB cable not included) ResetterCanon225... Canon 225/226 resetter 1 49.00 49.00 ResetterEpson268 Clup resetter for Epson older model cartridges(7 pin) 1 10.00 10.00 ResetterEpson968 Chip resetter for Epson newer cartridge models(9 pin) 1 19.90 19.90 CentrifugePro Centrifuge Pro with 3 Platters 1 399.00 ,399.00 INKS:Canon 3EFIDPK-1L High Definitiori Ink for Canon PGS/40/50/30- Liter 1 27.30 27.30 3EC=1L Cyan Ink for Canon 41/51-1 Liter 1 26.46 26.46 3EM-1L Magenta Ink for Canon 41/51-1 Liter 1 26.46 26.46 3EY-1L Yellow Ink for Canon 4t/51-1 Liter 1 26.46 26.46 INKS:Epson 33K-iL Black Ink for Epson Cartridges-1 Liter 1 16.60 16.60 33C-1L Cyan Ink for Epson Cartridges-1 Liter 1 19.62 19.62 33M-1L � Magenta Ink for Epson Carnidges-1 Liter 1 19.62 19.62 33Y-1L Yellow Ink for Epson Cartridges-1 Liter 1 19.62 19.62 33LC-1L Ligh't C�an Ink for Epson Cartridges-1 Liter , 1 16.60 16.60 33LM-1L Light Magenta Ink for Epson Cartridges-1 Liter 1 16.60 16.60 INKS:HP 96HDKP-1 L Black Pigment Ink for HP 21,27,56,60,74,92,84,96, 1 26.95 26.95 98,901 (Vivera Compatible)- 1 Liter 97C-1L Cyan Ink for HP 02,22,23,25,28,41,57,60,75,78, 1 25.54 25.54 88,93,95,97, 134, 135, 136,342,343,344,854,855, 857,901 High Def.(Vivera Compatible)-1 Liter 97M-1L Magenta Ink for HP 02,22,23,25,28,41,57,60,75,78, 1 25.54 25.54 88,93,95,97, 134,135, 136,342,343,344,854,855, 857,901 High Def. (Vivera Compatible)-1 Liter Visit our website: www.QuickfillOnline.com Total Page 1 � � � i � Quote PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill, SC 29715 to/31/2ot2 2564 Ph: 704-780-4878,Fax: 704-504-1449 Sold To Ship To INKJET SUGGESTED PACKAGE 10-31-12 Terms P.O.No. Rep PREPAY Lou Item Description Qty Rate Total 97Y-1L Yellow Inlc for HP 02,22,23,25,28,41,57,60,75,78, 1 25.54 25.54 88,93,95,97, 134, 135, 136,342,343,344,854,855, 857,9012 High Def.(Vivera Compatible)-1 Liter 99PK-IL PhoW Black Ink for HP,Canon and Lexmark cartridges 1 20.10 20.10 (Vivera Compatible)-1 Liter � 99PC-IL Photo G�an Inlc for HP,Canon and Lexmark cartridges 1 20.10 20.10 ' (Vivera Compatible)1 Liter 99PM-1L Photo Magenta Ink for HP,Canon and Lexmark 1 20.10 20.10 cartridges(Vivera Compatible)-1 Liter INKS:Lexmark/Dell 16PK-1L Black Ink for Lexmark and Dell Cartridges-1 Liter 1 19.62 � 19.62 26C-1L Cyan Ink for Le�unark and Dell Cartridges-1 Liter 1 18.35 18.35 26M-1L Magenta Ink for Lexmark and Dell Carlridges-1 Liter 1 18.35 18.35 26Y-1L Yellow Ink for I,elnnark and Dell Camidges-1 Liter �1 1835 1835 ISCLEAN-1G Universal cariridges cleaning solution-1 Gallon 2 34.99 69.98 PACKAGING: C1ipHP15/45 Clip for HP 15/45 cariridges(sold in 100 units) 100 0.29 29.00 CIipHP56/96 Clip for HP 100 0.29 29.00 21/22/27/28/56/57/58/74/74XL/75/75XL192/93/94/95/96 /97/98l99/100,and Canon PG 40/CL 41/PG 50/CL 51/ CL 52.(sold in 100 units) ClipLexl6 Clip for Lexmark 16,26,Dell T0529,T0530,Sharp 100 0.29 29.00 UX70B(sold in 100 units) . CIipL.eac50/70 Clip for Lexmazk 50/70/120...Xerox(sold in 100 units) 100 0.29 29.00 C1ipLeac82/83 Clip for Lexinark 1,31,32,33,34,35,82,83,De114640, 100 0.29 29.00 4646. Lid-Universal Univetsal inkjet cartridge silicone seal(replaces clip) 500 0.25 125.00 Round Sticker Round Self Adhesive Seals for HP 45/15,sheet of 100 2 4.U0 8.00 units BailPlug Stainiess steel Ball Plug.HP 40/45 and Canon BX-3(100 2 9.50 19.00 units) Anti-Stat S 4'x 6'Anti-static Bags for Inkjet cartridges- 100 unit pack 5 12.50 62.�0 Gloves Lazge Latex gloves Large(100 unit box) 1 12.50 12.50 61ueTape Print Head Tape, 100 meters 1 22.17 22.17 Visit our website: www.QuickfiliOnline.com Total Page 2 • ♦ t QUOte PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill, SC 29715 l0/31/2012 2564 Ph: 704-780-4878,Fax: 704-504-1449 Soid To Ship To INKJET SUGGESTED PACKAGE 10-31-12 Terms P.O.No. Rep • - PREPAY Lou ltem Description Qty Rate Total Box•M Medium Inkjet Cartridge Box 100 0315 31.50 • Box-L Large Inkjet Cartridge Box • 100 0.315 31.50 L7107 Label HP C9351AN(HP 21).90 label sheet 1 6.00 6.00 L7112 Label HP C9352AN(I�'22). 100 unit roll. 1 6.00 6.00 L4902 • Label HP C8727(HP 27). 100 unit roll. 1 6.00 6.00 '�917 • Label HP C8728(HP 28).100 unit roll. 1 6.00. 6.00 ` �,..4903 Label HP C6656(HP 56).100 unit roll. 1 6.00 6.00 I.4918 Label HP C6657AN(HP 57). 100 unit roll. 1 6.00 6.00 L7115 Label HP C6658A(HP 58)Phow Camidge. 100 unit 1 6.00 6.00 roll. L15421 Labels for HP CC640(60 or 300)Black cartridges.90 1 6.00 6.00 label sheet L15419 Labels for HP CC643 W(60 or 300)Color cartridges.90 1 6.00 6.00 labels sheet L15422 Labels for HP CC641(60XI,or 300XL)Black cartridges. 1 6.00 6.00 901abe1 sheet L15420 Label for HP CC644W(60XL or 300XL)Color 1 6.00 6.00 cartridges. 100 unit mll L15423 Labels for Hp CB335WN(74 or 350)Black camidges. 1 6.00 6.00 100 unit roll L15424 Labels for HP CB337(75 or 351)Color cartridges. 100 1 6.00 6.00 unit rolt L15431 HP CB336WN(74XL or 350XI.)Black cartridges. 100 1 6.00 6.00 unit roll. L15425 Labels for HP CB338WN(75XL or 351XL)Coior 1 6.00 6.00 cartridge. 100 unit roll L7108 Label HP C9362WN(HP 92). 100 unit roll. 1 6.00 6.00 L71 l3 Label HP C9361 WN(HP 93). 100 unit roll. 1 6.00 6.00 L4904 Label HP C8765(HP 94 or 338 in Europe). 100 unit roH. 1 6.00 6.00 IA919 Label HP C8766(HP 95 or 343 in Eutope). 100 unit roll. 1 6.00 6.00 L4905 Label for HP C8767(96 or 339 in Europe). 100 unit roll. 1 6.00 6.00 L4920 Label HP C9363(HP 97 or 344 in Europe). 100 unit roll. 1 6.00 6.00 L7109 Label EII'C9364WN(HP 98 or 337). 100 unit roll. 1 6.00 6.00 L7114 Label HP C9369WN(HP 99). 100 unit roll. 1 6.00 6.00 Visit our website: www.QuickfillOnline.com Total Page 3 o r e Quote PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill, SC 29715 toi3t/2o12 2s6a Ph: 704-780-4878, Fax: 704-504-1449 Sold To Ship To INKJET SUGC�ESTED PACKAGE 10-31-12 Terms P.O. No. Rep PREPAY Lou Item Description Qty Rate Total L15426 Labels for HP CC453(901)Black cartridges. 100 unit 1 6.00 6.00 roll L15428 Labels for HP CC656(901)Color cariridges. 100 unit 1 6.00 6.00 � roll. � LI5427 Labels for HP CC654(901XL)Black cartridge. 100 unit 1 6.00 6.00 roll � L4945 Label HP 51645(HP 45)-100 Unit roll. � 1 6.00 6.00 L4946 Label HP C6615(HP 15)-100 unit roll. 1 6.00 6.00 L4962 Label HP C6578(HP 78). 100 unit roll. 1 6.00 6.00 L4963 Labei HP C6625(HP 17). 100 unit rol(. 1 6.00 6.00 L7116 Label Canon PG40. 100 unit roll. 1 6.00 6.00 L7119 Labei Canon PG50.l00 unit roll. 1 6.00 6.00 L7121 Label Canon CL41. 100 unit roll. ' 1 6.00 6.00 L7104 Label DeH Series 1 Black(T0529,N5878,K1014)100 1 6.00 6.00 unit roll L7110 Labei Dell Series 1 Color(T0530). 100 unit roll. 1 6.00 6.00 L7111 Label Dell Series 2 Color 7Y745(X0504) 100 unit roll. 1 6.00 6.00 L9138 Label Deli Series 5 Color.100 unit mll. 1 6.00 6.00 L9141 Label Deli Series 5 Photo. 100 unit roll. 1 6.00 6.00 L9137 Label Lexmark 1 Co(or. 100 unit roll. 1 6.00 6.00 L4922 Label L,exmark I ON0217(Lex 17). 100 unit roll. 1 6.00 6.00 L4927 Label Lexmark 1ON0227(Lex 27). 100 unit roll. 1 6.00 6.00 L4924 Label Lexmark ION0016(Lex 16)-100 unit roll. i 6.(10 6.00 L4928 Label Lexmark I ON0026(26). 100 unit roll. 1 6.Q0 6.00 L4925 Label I.exmazk 18L0032(Lex 82). 100 unit roll. 1 6.00 6.00 L4929 Label Lexmazk 18L0042(Lex 83). 100 unit roll. 1 6.00 6.00 L4952 Label Lexmark 17G00505. 100 unit roil. 1 6.00 6.00 L4971 Label Lexmark 17G0060. 100 unit roll. 1 6.00 6.00 L4953 Label Lexmark 12A1970. 100 unit roll. 1 6.00 6.00 L4972 Label Lexmazk 12A1980/85. 100 unit roll. 1 6.00 6.00 L4964 Label Lexmark 15M0120. 100 unit roll. 1 6.00 6.00 L15440 Labels for HP CH561 (HP 61 Black)cartridges.901abels 1 6.00 6.00 sheet. L15441 Labels for HP CI-I562(HP 61 Color)carlridges.901abels 1 6.00 6.00 sheet. Visit our website: www.QuickfillOnline.com Total Page 4 • t e QUOt@ PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill, SC 29715 to/31/2oi2 2564 Ph: 704-780-4878,Fax: 704-504-1449 Sold To Shi To' P . INKJET SUGGESTED PACKAGE 10-31-12 . Terms P.O.No. Rep PREPAY Lou Item Description Qty Rate Total L15442 Labels for HP CH563(HP 61XL Black)cartridges.90 6.00 6.00 labels sheet L15429 Labels for Canon CL31 Color cariridges.100 unit roll 1 6.00 6.00 ' L15430 Labels for Canon PG30 Black carnidges. 100 unit roll 1 6.00 6.00 IS-88Plug Epson Smm Plug(sold per 100,price per each) 100 0.05 5.00 [S-89Plug HP 23/41l78 TriColor vent plug,4 mm(sold in 100 units, 100 0.05 5.00 price per each) IS-96Cap Replacement Ink Port Caps for Epson(100 units) 100 0.19 19.00 IS-97Cap Replacement caps for HP 564/920 Canon PGI 100 • 0.22 22.00 5/I'G220/225,BCI-3 and BCI-6 Black cartridges.(Price per each,sold in 100 pack) • IS-98Cap Replacement Ink port Caps for Canon 100 0.24 24.00 CLI-8/PG221/PG226 cartridges and HP 564/920(Price per each,sold in 100 packs only) CHIPS/HOSES QFHP02HoseSet Set of hoses with connectors for refilling HP02/950/951 1 49.00 49.00 cartridges for QuickFill machine. 1 vacuum hose,4 color hoses(Black,Cyan,Magenta and Yellow) HP02Bchip HP-02 AutaResettable chip for BLACK cartridge 10 1.99 19.90 C8721 WN HP02Cchip HP-02 Auto-Resettable chip for CYAN cartridge 10 1.99 19.90 C8771 WN HP02Mchip HP-02 Auto-Resettable chip for MAGENTA cartridge 10 1.99 19.90 • C8772WN HP02Ychip HP-02 Auto-Resettable chip for YELLOW cartridge 10 1.99 19.90 C8773 WN HP02LCchip HP-02 Auto-Resettable chip for LIGHT CYAN cartridge 10 1.99 19.90 C8774WN HP02LMchip HP-02 Auto-Resettable chip for LIGH'T MAGENTA 10 1.99 19.90 cartridge C8775WN CILCSIBK Compatible Brofher LC-S1BK(B(ack) 10 1.49 14.90 CILCS 1 C Compatible Brother LC-S 1 C(Cyan) 5. 1.49 7.45 CII.CS i M Compatible Brother LC-S 1 M(Magenta) 5 1.49 7.45 CILCS 1 Y Compadble Brother LC-S 1 Y(Yellow) 5 1.49 7.45 Visit our website: www.QuickfillOnline.com Tot11 Page 5 � r � Quote PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill, SC 29715 to/31/2012 2564 Ph: 704-780-4878,Fax: 704-504-1449 Sold To Ship To 1NKJET SUGGESTED PACKAGE 10-31-12 Terms P.O.No. Rep PREPAY Lou Item Description Qty Rate Total CILC6IBK Compatible Brother LC-61(Black) 10 1.49 14.90 CILC6IC Compatible Brother LC-61C(Cyan) 5 1.49 'I.45 CILC6IM Compatible Brother LC-61M(Magenta) 5 1.49 7.45 CILC6IY Compatible Brother LC-61Y(Ye(low) 5 1.49 7.45 CILC75XI.BK Compatible Brother LC-75XLBK(Black) 10 2.69 26.90 CII,C75XLC Compatible Brother LC-75XLC(Cyan) 5 2.69 13.45 CILC75XLM Compatible Brother LC-75XM(Magenta) 5 2.69 13.45 CILC75XI,Y Compatible Brother LC-75XLY(Yellow) 5 2.69 13.45 Freight&Shipping Freight quotes are FOB Origin.Calculated after receving . 0.00 destination address. Visit our website: www.QuickfiilOnline.com TOtal $s,s�s.9s Page 6 s + e Quote PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill,SC 29715 to/31/2012 2s6s Ph:704-780-4878,Fa�c: 704-504-1449 Sold To Ship To Toner Package 11-1-2012 � . � � Terms P.O.No. Rep Item Description Qty Rate Total EQUIPMENT: Dust Collector Toner Dust Collector 2,400.00 2,400.00 Toner Vacuum Toner SERVICE VACLJLJM 1 216.00 216.00 HopperUniv Universal Toner Hopper Fixturo 1 198.00 198.00 MAG/PCRSTAND' STAND for Mag Rollers and Primary Charge Rollers 1 21.70 21.70 Tool Kit Complete Toner Tool kit 1 249.00 249.00 Toner Scale Toner Scale(7 KG X 0.001 KG)with AC power adaptor 1 99.00 99.00 PkHPQ2612A HPIOIODR HP 1010/1012/1015/1022(Q2612A)Canon 104/106 10 5.99 59.90 Drum H2WB20 Wiper blades HP 1012,for 12A,Canon 104(sold in 10 10 1.45 14.50 packs only,Price per each) H1DB20 Doctor Blade for HP Q2612A,Q5949A,Q5949X, 10 1.69 16.90 Q7553A,Q7553X,CESOSA,CESOSX,Canon 104, 106. (sold in 10 packs only,price per each) HPVIVATN HP VIVA Toner 1,050 g HP1010(12A)HP1160(49A) 2 20.54 41.08 HP1320(49�HP2420(11A)HP2300(l0A)HP2420 (11X)HP4200(38A)HI'4300(39A)HP4345(45A) HP4250/4350(42A)HP4250/4350(42X)HP5200(16A) Canon 104/106 sssssss pKG.for HPQ2612As"*"s"**•"* 13238 PkHPQ5949A HP1160DR HP 1160/1320/P2015(49/53)Drum 10 5.99 59.90 Hl WB20 Wiper blades HP 1100,1150,1300, 1160, 1320,P2015 10 1.45 14.50 for HP 92A,24A/X,13A/X,49A/X,53A/X,Canon EP-22.(Sold in 10 packs only) H1DB20 Doctor Blade for HP Q2612A,Q5949A,Q5949X, 10 1.69 16.90 Q7553A,Q7553X,CESOSA,CESOSX,Canon 104,106. (sold in 10 packs only,price per each) J-HI'ACP HP Universal LOW YIELD Chip.Chip•for HP Q261 OA, 10 2.99 29.90 Q6511A,Q2613A,Q1338A,Q1339A,Q5942A, Q5945A,Q5949A,Q7551A,Q7553A. Visit our website: www.QuickfillOniine.com Total Page 1 � • � Quote PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill, SC 29715 l0/31/2012 2565 Ph:704-780-4878,Fax: 704-504-1449 Sold To Ship To TonerPackage 11-1-2012 Terms P.O.No. Rep Item Description Qty Rate Total HPVIVATN HP VIVA Toner 1,050 g HP1010(12A)HP1160(49A) 2 20.54 41.08 HP1320(49�HP2420(I IA)HP2300(l0A)HP2420 (11X)HP4200(38A)HP4300(39A)HP4345(45A) HP4250/4350(42A)HP4250/4350(42X)HP5200(16A) Canon 104/106 **"•*"'***PKG.for HPQ5949A*'***"""*"`** 162.28 PkHPQ2613A HP1200DR HP 1150/1200/1300/FX8/S35/X25(24A/X 15A/X 10 7.49 74.90 13A/X)Drum Hl WB20 Wiper blades HP I 100,I 150, 1300,1160,1320,P2015 , 10 1.45 14.50 for HP 92A,24A/X, 13A/X,49A/X,53A/X,Canon EP-22.(Sold in 10 packs only) 13DB20 HP 1200/1300 DOCTOR BLADE for 10 1.94 19.40 13A-X/15A-X/24A-X Canon FX8/S35/X25(sotd in 10 packs only,price per each) J-HPACP HI'Universal LOW YIELD Chip.Chip for HP Q2610A, 10 2.99 29.90 Q6511A,Q2613A,Q1338A,Q1339A,Q5942A, Q5945A,Q5949A,Q7551A,Q7553A. J-HPXCP ' HP Universal HIGH YIELD Chip.Chip for HP Q2610X, 10 2.99 29.90 Q6511X,Q2613X,Q1338X,Q1339X,Q5942X, Q5945X,Q5949X,Q7551A,Q7553A. HPEFFECTIN HPEFFECT Toner 500 g for HI'C4092A,Q2624A, 3 8.99 26.97 Q2624X,C7115A,C7115X,Q2613A,Q2613X, C3906A, 92274A, C3903A,Canon FX-2,FX-3,FX-4, FX-8,535,X25. *"**""*"s"**PKG.for HPQ2613A/X*"****•**** 195.57 PCR's 12CR70 PCR HP 1010/1100/1200/1160/P2035/P2055 for 10 3.49 34.90 03/06/12/13/15/24/49/53/O5,Canon _ 104/106/FX3/FX4/FX8/S35/X25(sold in 10 packs only, price per each) PKHPCB435A/36... Visit our website: www.QuickfillOnline.com Total Page 2 : e ♦ Quote . PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 FOtt Mill, SC 29715 10/31/2012 2565 Ph:704-780-4878,Fax: 704-504-1449 Sold To Ship To Toner Package 11-1-2012 � � Terms P.O.No. Rep item Description Qty Rate Total HP1006DR Drum for HP CB435A,CB436A,CE278A,CE285A. 10 6.49 64.90 (P1002,P1003,P1004,P1005,P1006,P1009,M1522, , P1S05,P1606,P1100,P1100) HPP 1006TTT HP P 1005/P 1006/P 1505/P 1102/P 1606 10 5.50 55.00 (CB435A/CB436A/CE285A/CE278A)Toner,80 g. J-HP1006CP Chip for HP P1006(CB435A,Yield: 1.SK)and 10 3.49 34.90 P1505/M1120/M1522(CB436A,Yield:2K) ***"'***•*Pkg for cartridges HP35A-36A-78A- 154.80 g5E1###t#itiiif ' PkHPQ7553A HP1160DR HP 1160/1320/P2015(49/53)Drum 10 5.99 59.90 Hl WB20 Wiper blades HP 1100,1150,I300,1160,1320,P2015 10 1.45 14.50 for HP 92A,24A/X,13A/X,49A/X,53A/X,Canon EP-22.(Sold in 10 packs only) H1DB20 Doctor Blade for HP Q2612A,Q5949A,Q5949X, 10 1.69 16.90 Q7553A,Q7553X,CESOSA,CESOSX,Canon 104, 106. (sold in 10 packs only,price per each) J-HPACP HP Universal LOW YIELD Clup.Chip for HP Q2610A, 10 2.99 29.90 Q6511A,Q2613A,Q1338A,Q1339A,Q5942A, Q5945A,Q5949A,Q7551A,Q7353A. J-HPXCP HP Universal HIGH YIELD Chip.Clup for HP Q2610X, 10 2.99 29.90 Q6511X,Q2613X,Q1338X,Q1339X,Q5942X, Q5945X,Q5949X,Q7551A,Q7553A HPP2015ATN HP P2015 Toner,150 g(Q7553A-150g/Q7553X-370 10 3.99 39.90 S) *•'*•**'•PKG.for HPQ7553A/X****"**••* 191.00 PKHPCESOSA HPP2055DR Drum for HP P2035,P2055 printer cartridges(CESOSA, 10 6.90 69.00 CE5057� HPP2055XTN HP P2055,P2035 Toner(CESOSA/X),290 g. 10 8.50 $5.00 H1DB20 Doctor Blade for HP Q2612A,Q5949A,Q5949X, 10 1.69 16.90 Q7553A,Q7553X,CESASA,CESOSX,Canon 104,106. (sold in 10 packs only,price per each) Visit our website: www.QuickfillOnline.com Total Page 3 e • � QUOt@ PR�VIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L. Tucker Rd. Suite 108 Fort Mill, SC 29715 10/31/2012 2565 Ph:704-780-4878,Fax: 704-504-1449 Sold To Ship To Toner Package 11•1-2012 Terms P.O.No. Rep Item -, Description Qty Rate Total J-HPP2055ACP Chip for HP P2035,P2055(HP CESOSA)standard yield 10 2.69 26.90 2.3K J-HPP2055XCP Chip for HP P2055(HP CESOSX)High Yield 6.SK 10 2.69 26.90 '*"s****'*Package for HP CESOSA/X'"'�'�****s'� 224.70 PkBrTN350 BRTN350TN Brother TTT350/1N2000 Toner(90 grams) 10 5.00 50.00 BRTN350FGR Brother TN350 starter cadridge reset flag gear(price per 10 0.55 5.50 each,sold in 10 packs) BRTNHOPCV Toner Hopper COVER for Brother 10 1.15 I1.50 TN350/430/460/530/560/540/570/550/580 BRTNHOPCAP Universal hopper cap Brother TN-350,TN-030/460, 10 0.35 3.50 TN-530/560,'TN-540/570,TTi-670/"IN-700(sold in 10 , packs only,price per each) BRDR350DR Drum for Brother TTT 350,DR 350,2000,HL 2040,2070 5 11.90 59.50 VERTICAL gears ••*'�*******PKG for 10 Brother TN350/"IN2000 130.00 :sss::s#ss: � PkBrtn360 BRTN360TN Brother TN360(HL 2140,2170)Toner 9a g(2,600 10 6.50 65.00 pages) BRTN360FGR Reset Lever for Brother TN360,HL2120/50 Starter 10 0.75 7.50 cartridge(price per each,sold in 10 packs) BRTNHOPCV Toner Hopper COVER for Brother 10 1.15 11.50 1N350/430/460/530/560/540/570/550/580 BR'I1VfiOPCAP Universal hopper cap Brother 1N-350,TN-430/460, 10 0.35 3.50 TN-530/560,'fN-540/570,TN-670/'IN-700(sold in 10 packs only,price Qer each) • BRDR360DR Dntm for Brother TN 330,360,DR 360,2100,HL2140, 5 .11.90 59.50 2170 Drum "'****'***Package for 10 Brother 147.0(1 TN330/360"*"`s***s*rs*�*s Visit our website: www.QuickfiilOnline.com Total Page 4 e t a • Quote PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 FOrt Mill, SC 29715 10/31/2012 2565 Ph:704-780-4878,Fa�c: 704-504-1449 Sold To Ship To Toner Package 11-1-2012 Terms P.O.No. Rep item . Description Qty Rate Total PKBRTN450 BRTN450'IN Toner for Brother TTT 450,HL 2230,2240,2270,75g 10 5.60 56.00 BR1N450FGR Reset flag gear for Brother 1N 420,450,HL 2230,2240, 10 0.72 7.20 2270,10 pack(Iiigh Yield) BRINHOPCV Toner Hopper COVER for Brother 10 1.15 11.50 � TN350/430/450%460/530/560/540/570/S50/580 � BRINHOPCAP Universal hopper cap BroWer TN-350,TN-430/460, 10 035 3.50 TN-530/560,TN-540/570,TN-670/TN-700(sold in 10 packs only,price per each) PKG for 10 Brother TN420/450 Cartridge 78.20 PkBrTN430 � BRTN460TN Brother Toner TN430,TN460,TN530,1N560,TN540, 10 8.90 89.00 TN570,210 g • BRINHOPCV Toner Hopper COVER for Brother 10 1.15 11.50 TN350/430/460/530/560/540/570/550/580 BRTNHOPCAP Universal hopper cap Brothei 1N-350,TN-430/460, 10 035 3.50 TN-530/560,'IN-540/570,TN-670lfN-700(sold in 10 packs only,price per each) BRDR400DR Brother DR400 Dnan(HIr1240) 5 15.90 79.50 *'*#s***"*#*PKG for 10 Brother 183.50 TN430/460/530/540/560/570 cartridge(250 S)sss.•�ssssssss • PKBrTn580 BRTN58QTN Brother TN550/580 Toner,18�g 10 9.50 95.00 BRTTT580FGR Brother TN580/'IN3170 Starter Cartridge Reset Lever 10 0.55 5.50 BRINHOPCV Toner Hopper COVER for Brother 10 1.15 11.50 TN350/430/460/530/560/540/570/550/580 BRTNHOPCAP Universal hopper cap Brother 1N-350,1N-430/460, 10 035 3.50 1T1-53Q/560,TN-540/570,1N-670/'I'N-700(sold in 10 packs only,price per each) BRDR520DR Brother DR520,DR620 Drum(HI.-5250/DR-310D 5 11.99 59.95 •**'#•*"*PKG for 10 Brother TN550/580(180 175.45 8)ss�s.**sssssss Visit our website: www.QuickfillOnline.com Total Page 5 e e o QUOt@ PROVIDING BEST SOLUTIONS � Date Estimate# 3581 Andrew L. Tucker Rd. Suite 108 Fort Mill, SC 29715 to/31/2012 2565 Ph:704-780-4878,Fax: 704-504-1449 Sold To Ship To Toner Package 11-1-2012 Terms P.O.No. Rep Item Description Qty Rate Total PKI.eE250 J-LEX250CP CF3IP I,exmazk E250/E350(3.SK page yield) 10 3.90 39.00 LEXCOMPLE'TE... New I.exmark Complete Toner,1 Kg.(I.ex T420,T422, 4 29.00 116.00 X422,T430,Optra S,SE,T,T620,T650,E120,E220, E321,E323,E230,E330,E240,E340,E250,E350, E450,E260,E360,E460,and more. **'*'"*"PKG for 10 Lexmark E250/E350/E352 155.00 (cart#E250A11A),IBM InfoPrint 1612/1622"*;"•** PACKAGING: AIRBAGSM Small Black Airbag for toner cartridges.HP 1010, 1015, 100 0.59 59.00 1150,1200(24 x 41.5 cm)100 pack,price per each. BOXSMl SMALL toner cartridge boxes.12.5"x 5.5"x 3.25".Fits 25 1.59 39.75 HP 06/12/13/15/24/49A/92 etc.White cartridge box reclosabie design.No insert required.25 per bundle,price per each. . BOXMDl MEDIiJM toner cariridge boxes.13"x 7"x 3.5".Fits HP 25 1.79 44.75 11/96/98 etc.White cartridge box reclosabte design.No insert required 25 per bundle,price per each. MISCELLANEOUS: TONERTOWEL Toner Towel,Yellow,for non-component cleaning 40 0.35 14.00 (hands,work area,cart plastic parts etc)(sold in 40 packs . only,price per each) Whitetowel White clean towel for cartridge component cleaning(sold 40 0.27 10.80 in 40 packs only,price per each) � CG99MS31 Conductive Grease(28g)for PCR-MRS etc.contacts 1 25.95 25.95 ISFUNNEL Small toner bottle fiuu►el(I.exmark,Samsung etc.type 5 0.43 2.25 toner bottles) Printer35/36/78/8... Modified printer to test HP 35/36/78/85A cartridges 1 179.00 179.00 Toner Training Toner Cartridge Remanufacturing-Training Credit -350.00 -350.00 Toner Training Toner Cartridge Remanufacturing-Ttaining credit -175.00 -175.00 second person Subtotal 4,998.48 Visit our website: www.QuickfillOnline.com Total Page 6 t + �� Quote PROVIDING BEST SOLUTIONS Date Estimate# 3581 Andrew L.Tucker Rd. Suite 108 Fort Mill, SC 29715 to/31/2012 2s6s Ph: 704-780-4878,Fax: 704-504-1449 Sold To Ship To TonerPackage 11-1-2012 Terms P.O.No. Rep item Description Qty Rate Total Freight&Shipping Freight quotes are FOB Origin.Calculated upon receiving 0.00 shippin address Visit our website: www.QuickfillOnline.com TOtal �a,s9s.ss Page 7 Cash Flow (12 months) Universal Cartridge USA,LLC FiscalYearBegins: Jeir19 rre- - ' Total Startup ! Feb-13 Marvt3 Apr-13 May-13 . Jurr13 Jul-73 ; Aug-13 Sep-13 � Oct-13 Nov-13 Dec-13 Jan-14 ��em EST - - � 5�951- 2.771 1,524 ___' - - � ---- . oa.. - -- --- Cash on Hand(beginning , i 1,2$9; 2,666; 5.550' 7.946t 11.945; 16.644, 23.925 33.674� 47.383; 0 of month �h�y�,q f ; Qi 2,200: 3,875: 6.350 &.4CM�: 9.950� 12.000;'` 14,5QU. 77,750` 25.006' 25.000' 30.(IQO 151,0"15 Owner's Equity._ �''` 5.000 _.—. °-.—..�. �_ __^� € 7 � � -- ------t-__.__ --- �'��- Loa� �.�! ____..__. ..____..._.._- TOTAL CASH RECEIPTS 7otai Cash Availa6le •' be4ore ca�t�put �" CostafC,ppds 2,774� t.1&9: 1.435 1.73Q 2.118 2.641' 3.164 3.84Q, 4,616 5.OQ6� 5.000� 5.000 5.060 44.T32 _ ��..�.__._..�.____ ,.-.-_ ______j____ �.. o Equipment - ._.. .. 0 12.�� --�--- T -- ...�a�_._. _____-�—� 0 USed ComPttt�laventory " 3.0�00t' I _.._.__a-- i .�_ _ Salary expenses �"-'""". y__.___ , -- - � .-----� , __ raNroiracPenses twxes. �""t.' - �._ '� --}--- _._..-0 nr:._i.-_-_.........__... _. . � Outside Serive Fees Legal Fees ..---��-- ----�---Q �� --_- 'u�0 � ._�__._v: Supplies(office&oper.) 1.500 .-m� �.��v_.._,�;_-•. � �jp 2upr '15p' 1.000 �.<� Marketing 2.0� 506 SOQ 200 300 3� 300 300 300 300 3U0 300 300'-°-�0 (�; 6.6'avet 20Q � 2Q0 ZOtI 2Q0 200 300 �0 300 300 �0 300 3.000 .��.._.____.--° Rent 725 22S 225 225 225 225 T25 225 2Z5 Y15 225 2� Y15,'�,T00 ."�'--"°��`'-.� � 100 1tIQ 1QQ S00 SOQ t� 150 159 150 tS0 t5d 150 1.500 Fel�� --. -- Utilities/PSE 1W 1U0 1� 1� t00 106 100 10U 1� 1� 1� 1� � f;200 _,.�_..... . --- . :.. , 250 . - � :., � - ._�___.t.-----__ ._T__. Taxes(real estate.etc.) --.-�-�0 _.�.,,�._;..,.,.._._.. T66 766 T66 768 768 T68 768 766 768 766 766 766 9.792 .. �t '' _---------•--- - - Bank Fees ' S00 ..--� �� .;-,_,.�,-__..._ 0 � � � 64 100 126 145 178 210 ?b0 ,300 1.510 ;�a:�--_.. -- Business Ucense ti '� j'a -r+�-7 �--: - j(�'' _a;r�'w:, ' ., 1.�. . " 4U0 14Q %Z� S00 1� ^� -�+ � ,YOtf �. 1.800 SUBTOTAL � r,r`+..:."s�'.�e..^*�_ � �. � ..�: . � ' j � � , i � ..,��',`- �x Q Cepital purchase(specify) X,'",:"�``--=-^Q �:�.: ,,�.__ "� .�:°��o Reserve and/or Escroov � �: `'-`z�a - --- -- • 1' 1. 2.000 3,OdQ 3 4 �f�f 24.000 TOTAL CASH PAID OUT ca�n��t��~°- ,, rria,tt,} ��`__.�`.....--_-.- • • - • . � - . . . �� '�� '� �� • ' . . ��y g�r�y �� • _ • � ��J�� ' c� � e• �� '„ � A i �Li:l��i�1� •� �• . - � : . 1 !i � 6i � 8� A �9� 1 9i 0 �7� ��4;9 0 �� 1 A� � �� 0 38 ! @i �� • : _ �] ' � �1!]��1g . i • � �� - �� . �� lc1c�� . - . . . . . ��'��~�l��I�iii � �� - . � •' ��]i�3�i�]�� • '• . - . - . . ��I '• ��YL�]�'�ttk�� ' �3�� '� �7L.j - � •. . . - . . !�� '1�.�L1��}'�MJ�� a .��.�°.LY��X.�L]��'�f�l4.•°� r �� k� - . : , � ��, o e �L�,��]�t .� a �� e��1��:�• �"�� (�i��i. '� ��`�z��.�,��t �Q %////////// - _ - : - ��'1!]�tlllrk� �� -� �� . �� • �� - • : - - . . ��'i��]�fil�] - � � � �:� : � �:� �� . � :•� �:�:r�:� : - . . . ��7t��'�]�i�] ;. . .� �� .• � - • � . � :� : . � - � :•: - - � . . ��.��LJ��a-t� ��.��z��ll�.��i.��'�;�,��illr e e �`jY e� .:�� - . : • �ilL�'�'� �t��.�,��a.��.k��.�.��o� . ��tY��:j�� 9 �'� ��,.��,�� "� ��LI%////////% . . . . . � �� ' ,:� �� . �;� �� : �� • �� :� �� t:�:�[�I�I�� i�'Ij�I:�J��'�L�'��Y��iil�l] s� �:jrK�►.i - . . � •� :� �c� - � - � - �. . � �: : �• • � � � : . .: _ . . - �� :. . - � �� . . � . - �� • • � �� . . . . . . - . . - �� ' �' �� •' � :- � � . . � Liberty 1�lorthwest� Ncn�lxr�N L�n}�.�tutwi C�rW�t� CONIlVIERCIAL INSURANCE PROPOSAL � PREPARED FOR: Account Number:55385532 UNIVERSAL CARTRIDGES USA,LLC PRESENTED BY: PROPEL INSURANCE-AM SC DATE OF PROPOSAL: 12/13/2012 POLICY PERIOD: EFFECTIVE DATE: 12/13/2012 EXPIRATION DATE: 12/13/2013 QUOTE NUMBERS INCLUDED Commercial Protector OP 55385532BZS1 2 *This Quote Proposal has been developed solely as an estimate of premium for the listed coverages shown,based on the information provided to the Company,and all amounts shown herein are subject to change. This Quote Proposal does not bind or provide actual coverage and is not an offer of insurance.Specific terms of coverage,exclusions,and limitations are contained solely in a completed insurance policy issued by the Company to a named insured and for wluch a premium has been paid. CONIlVIERCIAL INSURANCE PROPOSAL-PREMIUM RECAP TOTAL COMMERCIAL PROTECTOR(BOP)PREMNM $499.00 CERTIFIED ACTS OF TERRORISM COVERAGE:* COMIvvIERCIAL PROTECTOR(BOP) $ 1.00 STATE CHARGES: COMMERCIAL PROTECTOR(BOP) BALANCE TO MEET MINIMUM PREMIiJM(S): -$259.00 TOTAL PROPOSAL PREMIITM:** $500.00 **NOTE:ACCOUNT ACCEPTABILITY AND FINAL PREMIUM ARE SUBJECT TO UNDERWRITING REVIEW AND APPROVAL. *NP 72 42 Terrorism Insurance Premium Disclosure and Opportunity to Reject: This quote includes coverage for Certified Acts of Terrorism(as defined in the Terrorism Risk Insurance Act("TRIA"))for the lines of business referenced above with a premium charge. You may elect to rej ect this coverage for any Commerciai Property,General � Liability,Inland Marine,Commercial Protector(BOP),or Umbrella for losses resulting from a"certified act of terrorism"according to the instructions included within this document. Should you elect to reject this coverage,we will process an endorsement to your policy upon receipt of the signed rejection form.Note this disclosure notice and rejection option does not apply to Workers Compensation, Crime,Professional Lialiility or Commercial auto coverage,if included in this quote. Please refer to the enclosed notice for additional :�information regarding this act,its effect regarding your policy coverage,and its impact on your premium. Additional Note:The Certified Acts of Terrorism Coverage does not apply for any Commercial Auto,burglary and theft(i.e. Commercial Crime),or professional liability coverages quoted and a premium charge has not been included for these lines of business. I I COMII�RCIAL GENERAL LIABILITY PROPOSAY, LIABILTTY LIMTTS OF INSURANCE: Liability $ 1000000 Liability and Medical Expenses-Occurrence Medical Expenses $ 15,000 (Any One Person) AGGREGATE LIMITS OF INSURANCE: Products-Completed Operations $2000000 Other Than Products-Completed $2000000 Operations OPTIONAL LIABILITY COVERAGES-�POLICY LEVEL: LIMIT OF INSURANCE Hired and Non-Owned Auto Liabili Included PROPERTY PROPOSAL OPTIONAL COVERAGE-POLICY LEVEL: LIlVIIT OF INSURANCE: EXTENSION ENDORSEMENT: Businessowners Extension Endorsement See Endorsement Business Income Changes—24 Hour Waiting Period Included Identity Recovery Coverage for Defined Individuais Expense Reimbursement Annual Aggregate $25,000 Expense Reimbursement Deductible $250 Case Management Service Included - LOCATION NUMBER: 1 ADDRESS: 33442 lst Way S,Federal Way,WA 98003 PROPERTY LIMITS OF INSURANCE: BITSINESS PERSONAL PROPERTY: $20,000 Valuation RC Included in BPP Deducrible $500 Equipment Breakdown Included BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM INCLUDES: ADDTI'IONAL COVERAGES-TIME ELEMENT: LIMIT OF INSURANCE: Business Income 12 consecutive months-Actual Loss Sustained Extended Business Income 30 consecutive days Business Income From Dependent Properties $5,000 . • Extra Expense 12 consecutive months Civil Authority 3 consecutive weeks ADDITIONAL COVERAGES-OTHER THAN TIME ELEMENT: Debris Removal $10,000 Preservation of Property 30 days Fire Department Service Charge $2,500 Collapse Included Water Damage,Other Liquids,Powder or Molten Material Included Damage Poliutant Clean Up and Removal $10,000 annual aggregate Money Orders and Counterfeit Paper $1,000 Forgery or Alteration $2,500 Increased Cost of Construction $10,000 Glass Expenses Included Fire Extinguisher Systems Recharge Expense $5,000 Electronic Data $10,000 Interruption of Computer Operarions $10,000 , Limited Coverage For"Fungi",Wet Rot,Dry Rot And Bacteria $15,000 � COVERAGE EXTENSIONS: Newly Acquired or Constcucted Property Buildings $250,000-30 days Business Personal Property $100,000—30 days , Personal Property OffPremises(Including While In Transit) $10,000 Outdoor Property $2,500($500 per tree,plant or shrub) Personal Effects $2,500 at each described premises Valuable Papers and Records(Other Than Accts Receivable) $10,000 at each described premises $5,000 at premises not described Accounts Receivable $10,000 at the described premises $5,000 at premises not described BUSINESSOWNERS EXTENSION ENDORSEMENT INCLUDES: *If limits are increased,the coverage and increased limit appear in the Optional Coverage section for the location where the coverage is increased(When Employee Dishonesty is increased,it appears in the Policy Level Optional Coverage section. Premium Charge $5.00 Accounts Receivable $35,000 on/5,000 off Amendment Loss Payment Provision Removes coinsurance and property of others provisions Amendment of Limitation See Below Fragile Articles Limitation $5,000 All Covered Causes of Loss Brands and Labels Included in Business Personal Property Limit Business Income From Dependent Property $50,000 or 30 Days Actual Loss Sustained Business Income-Newly Acquired Locations $250,000 at each Newly Acquired Premises/60 days Business Income-Ordinary Payroll Expense Removes the 60 day limitarion Business Personal Property Legal Liability requirement deleted,covered within 1,000 feet of premises Business Personal Property-Seasonal Increase 33% i Cellular Phones-Coverage $1,000 Computer Equipment $25,000 Consequential Loss to Stock Included in Business Personal Property Limit Debris Removal $25,000 Deductible See endorsement for Deductibles for specific coverages Deductible-Cellular Phones $50 Definirions See Below Fine Arts Definition is added,see endorsement Period of Restoration The ending time is clarified,see endorsement Electronic Data $25,000 Employee Dishonesty $25,000 � Employee Tools $25,000 � ERISA None Fine Arts $10,000 Fire Department Service Charge $15,000 Fire Extinguisher Recharge Expense $15,000 � Forgery or Alteration $25,000 or follows Employee Dishonesty Limit Glass Includes damage to glass,encasing frames,lettering, and ornamentation Increased Cost of Construction See Ordinance or Law Coverage I.eased Building Properiy $5,000 Limits of Insurance See Endorsement for Coverages that have limits in -� addition to the Limits of Insurance Lock Replacement Actual Loss Sustained Loss Adjustment Expenses $5,000 � Money and Securiries $10,000 on premises Money Orders and Counterfeit Money $10,000 Newly Acquired or Constructed Property See Below Building $1,000,000 up to 180 days Busincss Personal Property $500,000 up to 180 days Off Premises Power Failure $25,000/24 hours Ordinance or Law Loss to the Undamaged Property-Included, $150,000 Demolition Cost and Increased Cost of Construcrion Outdoor Property All covered causes of loss � Fences,Retaining Walls;Radio and TV Antennas $25,000 aggregate Trees and Shrubs $1,000 each tree,shrub or plant Outdoor Signs $25,000 Occurrence Personal Effects $15,000 Personal Property Off Premises $25,000 Preservation of Property 60 days Property Not Covered Stained Glass Reward $10,000 Sales Samples None � Undamaged Tenant Improvements and Betterments See Below Coverage Covered as Business Personal Property Loss Payment Valuation,See Endorsement Valuable Papers and Records $25,000 on/10,000 off Water Back-up and Sump Overflow $25,000 LIABILITY EXTENSION ENDORSEMENT INCLUDES: COVERAGE DESCRIPTION: REVISED LIMITS OF INSURANCE: Aggregate Limits Aggregate limits apply separately to each location and each project. Amendment of Insured Contract Definirion Includes aayone as an additional insured the named insured has a written contract for rental or lease of premises or whom the insured is doing work. Bail Bonds Supplementary Payments for cost of Bail Bonds aze increased from$1000 up to$3,000. Blanket Additional Insureds(Owners,Contractors or Lessors) Includes persons or organizations agreed to by written contract,for liability arising from ongoing � operations,or premises of the named insured. Bodily Injury Redefined Includes bodily injury,sickness,disease,or incidental medical malpracrice injury,including death resulring from any of these at any time. Broadened Coverage for Damage to Premises Rented to You Elctends coverage to the named insured for damage o rented or temporarily occupied premises,with a limit of insurance shown in the declarations. Duries in the Event of occurrence,Offense,Claim or Suit Provision only considered breached if laiown to insured or"employee"authorized by the insured,to give or receive notice of"occurrence"or"claim". ' Incidental Medical Malpractice . Included Loss of Eamings Supplementary Payments for actual loss of earnings are included up to$500,increased from$250 per day, ' because of time off from work. Mobile Equipment Who Is An Insured includes any person driving "mobile equipment"with the insured's permission. Newly Form or Acquired Organizations Who is an Insured includes Newly Formed or Acquired Organizations. � Personal And Advertising Injury Abuse of process is included in the definition of malicious prosecution. TERRORISM INSURANCE PREMIUM NOTICE This notice contains important information about the Terrorism Risk Insurance Act and its effect on your policy. Please read it carefully. THE TERRORISM RISK INSURANCE ACT The Terrorism Risk Insurance Act,including all amendments("TRIA"or the"Act"),establishes a program to spread the risk of catastrophic losses from certain acts of tenorism between insurers and the federal governmen,t. If an individual insurer's losses from a "certified act of terrorism"exceed a specified deductible amount,the government will reimburse the insurer for 85%of losses paid in excess of the deductible,but only if aggregate industry losses from such an act exceed$100 million.An insurer that has met its insurer deductible is not liable for any portion of losses in excess of$100 billion per year. Similazly,the federal government is not liable for any losses covered by the Act that exceed this amount. If aggregate insured losses exceed$100 billion,losses up to that amount may be pro-rated,as detemuned by the Secretary of the Treasury. � MANDATORY OFFER OF COVERAGE FOR"CERTIFIED ACTS OF TERRORISM"AND DISCLOSURE OF PRENIIUM TRIA requires insurers to make coverage available for any loss that occurs within the United States(or outside of the U.S.in the case of U.S.missions and certain air carriers and vessels),results from a"certified act of terrorism"AND that is otherwise covered under your policy. A"certified act of terrorism"means: [A)ny act that is certified by the Secretary[of the Treasury],in concurrence with the Secretary of State,and the Attorney General of the United States (i)to be an act of terrorism; (ii)to be a violent act or an act that is dangerous to— (1)human life; (In pmperty;or (III)infrastructure; (iii)to have resulted in damage within the United States,or outside of the United States in the case of— (n an air carrier (as defined in section 40102 of title 49,United States Code)or United States flag vessei(or a vessel based principally in the United States,on which United States income tax is paid and whose insurance � coverage is subject to regulation in the United States);or (In the premises of a United States mission;and (iv)to have been committed by an individual or individuals as part of an effort to coerce the civilian popularion of the United States or to influence the policy or affect the conduct of the United States Government by coercion. REJECTING TERRORISM INSURANCE COVERAGE -WHAT YOU MUST DO We have included in your policy coverage for losses from"certified acts of terrorism"as defined above. THE PRENIlUM CHARGE FOR THIS COVERAGE APPEARS ON TI�DECLARATIONS PAGE OF THE POLICY AND DOES NOT INCLUDE ANY CHARGES FOR TI�PORTION OF LOSS COVERED BY TI-IE FEDERAL GOVERNMENT UNDER THE ACT. IF YOU CHOOSE TO REJECT THIS COVERAGE,PLEASE CHECK TI�BOX BELOW,SIGN TF�ACKNOWLEDGMENT, AND RETURN THIS FORM TO'TI�ADDRESS BELOW: Please ensure anv reiection is received within thirtv(30) davs of the effective date of vour uolicY. I her.eby reject this offer of coverage.I understand that by rejecring this offer,I will have no coverage for losses arising from a "certified acts of terrorism"and my policy will be endors`ed accordingly. Policyholder/Applicant's Signature Print Name � Date Signed � Named Insured:LJNIVERSAL CARTRIDGES USA,LLC Polic Number:55385532 Effective Date: 12/13/2012 Ex iration Date: 12/13/2013 IF YOU REJECTED THIS COVERAGE,PLEASE RETURN THIS FORM TO: Attn:Commercial Lines Division-Terrorism P.O.Box 188060 Fairfield,OH 45018 . NOTE:Certain states(currently CA,GA,IA,IL,MA,ME,MO,NY,NC,NJ,OR,RI,WA,and WI)mandate coverage for loss caused by fire following a"certified act of terrorism"in certain types of insurance policies.If you reject TRIA coverage in these states on those policies,you wiil not be chazged any addirional premium for that state mandated coverage. The summary of the Act and the coverage under your policy contained in this notice is necessarily general in nature. Your policy contains specific terms,definitions,exclusions and conditions. In case of any conflict,your policy language will control the resolution of all coverage questions. Please read your policy carefully. If you have any questions regarding this notice,please contact your agent. NP 72 42 0108 Break Even Analysis Universal Cartrid e USA, LLC $151,025.00 $ 22,505.25 $128,519.75 85% $ 67,183.75 I, $ 78,948.38