Surety Performance SystemTM

May 25, 2015 Dear ________, I am pleased to present your Surety Performance System™ report and plan. Surety and bonding is the lifeblood of a contractor’s business. The Surety Performance System™ is a proven model to create a proactive structure around all the elements needed to provide a quality surety picture to maximize your work potential and improve a contractor’s business. The model we use incorporates financial, key relationships, business operations, future goals, and innovative thinking to capture the entire picture of a contractor. Creating the complete picture allows for a healthy bong position to maximize the work potential and profitability for your business. If anything changes during the next 12 months, please communicate to me as your Trusted Advisor. This is an active and organic plan. Therefore, working closely together to modify during the year will continue to maximize your potential. Thank you for trusting us with your surety and bonding needs. Sincerely, Larry G. Linne

OUR PROCESS

PRIOR YEAR PERFORMANCE REVIEW Results of Plan (Prior Year) Working Not Working

FINANCIAL ANALYSIS INSERT YOUR FINANCIAL INFORMATION HERE Revenue Expenses Profit

FINANCIAL ANALYSIS INSERT YOUR FINANCIAL INFORMATION HERE Assets Short Term Assets $1,000,000 Other Assets $2,600,000 Total Assets $3,600,000 Liabilities Short Term Liabilities $900,000 Long Term Liabilities $1,000,000 Total Liabilities $1,900,000 Owner Equity $1,700,000

FINANCIAL ANALYSIS Insert Additional or Other financial info HERE *WIP Analysis *Credit Analysis *Cash Flow *Etc.

FINANCIAL REVIEW & KEY BENCHMARKS Industry Standard is a quick ratio of 2:1. Your current balance sheet debt ratios are acceptable to industry norms. Cash management is not at standard for the industry. You are not collecting money according to contractual obligations. This is putting your company at risk. Working capital at X% of cost to complete current work. Discretionary overhead – How much work is needed to cover base overhead in the business. Equipment analysis – Productivity and return on investment.

Profit Analysis

CURRENT WORK PERFORMANCE REVIEW You currently have $12 million of work contracted. This amount of work will allow you to utilize your equipment and workforce efficiently. Your are bidding $25m of work right now. Your bid success rate has been 10%. Therefore, you are looking at about $2.5m of potential future work. This is a low number and should be considered. The High Plains job is behind schedule and could cause you cash flow problems if you are unable to get back on track. The weather has been a problem but you have a plan to get the work caught up through the summer. Significant Job(s)

PROJECTED FUTURE WORK Type of Work Equipment Needs Capital Needs Labor, PMs, or Special Skills Needed Additional Notes and Comments

COMPANY GOALS 3 YEARS 1 YEAR Additional Comments

BACK UP REVIEW Current Surety Back Up Position Financial Need for Back Up Market Need for Back Up 12 Month Strategy for Back Up Additional Comments

MARKET ANALYSIS & DATA Surety Market Trends Local Market National Market

TRUSTED ADVISOR EXPECTATIONS We frequently see conflict on financial advice with Trusted Advisors of our contractor clients. This conflict is none productive if communicated in a vacuum. Interaction and mutual understanding of your goals and objectives is critical to a good financial plan. Your Trusted Advisors should be giving you advice prior to your business planning. We need to capture the advice pertaining to profit, growth, cash flow management, and any other financial advice. This will allow you to know where conflict exists so you can determine the best direction for your company. Surety Expectations CPA Expectations Business Consulting Advisor/Recommendation Bank Covenants / Expectations

PERFORMANCE PLAN

STRATEGIES AND RECOMMENDATIONS The enhancement strategies were determined based on the facts and details of our analysis. We will visit these items throughout the year to support the execution. Surety Contract Credit Strategies Financial Improvement Strategies Other

ADDITIONAL RESOURCES Exit Planning/Business Continuity Hiring Insurance Options Risk Management Analysis HR Review Emerging Risk Industry Review Supply Chain Review Crisis Management

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