You manufacture…we do the rest Author: Bill Golden Owner and Board Member Intec Mexico, LLC My personal history: I have been the president of companies in the USA, Mexico and Europe some of these were private and one was a public company. Sales ranged from $3 - $132 million. All of the companies were in the automotive market. Relative to Mexican Facilities: I have been in a Shelter (outsourced services) and a “Stand-Alone”. In fact I started my first Mexican factory with The Offshore Group almost 10 years ago, and then decided it would be a lower cost solution to go to a Stand-Alone. During this time, I built two large factories (Hermosillo and Cuauhtémoc) and certainly experienced all the joys and pains of not only the start ups, but also the operational issues. Both facilities became profitable. However, I determined afterwards that our assumption that the Stand Alone would be lower cost was in reality the opposite. In 2002 The Intec Group and I founded a new factory with The Offshore Group. The company will produce in excess of $23,000,000 of sales this year. I doubt this growth and performance would have occurred without the assistance of Offshore. My experience is that the Offshore model not only provided a significantly lower cost solution, but it also recruited and furnished an excellent staff. This allowed us to focus on the real drivers of the business. Analysis: The Analysis on the following pages illustrates the Concept, Costs, Distractions and Risks associated with a Stand Alone operation versus an operation within the Offshore Group. The staffing and other assumptions are based on a minimum “Start Up” of a “Stand Alone”. As the “Stand Alone” operation grows in people and complexity, added staffing and costs would be required. The Analysis is also based on my experience in Mexico in both “Stand Alone” and Shelter operations. Background of the Analysis

You manufacture…we do the rest Ranking of Costs, Distractions and Risks of a Stand Alone Mexican Facility These issues are covered by the Offshore Shelter which has proven capability and provides savings through the leveraging of the joint use, expertise and volume. These Costs, Distractions and Risks are ELIMINATED with the Offshore Shelter.

You manufacture…we do the rest Staff Additions Required for Stand Alone Mexican Facilities These are positions and functions furnished by the Offshore Shelter which would be required by a Stand Alone Mexican facility to operate in Mexico. These Positions / Costs are ELIMINATED with the Offshore Shelter.

You manufacture…we do the rest Space, Furniture, Equipment & Supplies Required for Stand Alone Mexican Facilities These are functional costs furnished by the Offshore Shelter which would be required by a Stand Alone Mexican facility to operate in Mexico. These Costs are ELIMINATED with the Offshore Shelter.

You manufacture…we do the rest Summary These are costs absorbed by the Offshore Shelter which would be required by a Stand Alone Mexican facility to operate in Mexico. These Costs are ELIMINATED with the Offshore Shelter.

You manufacture…we do the rest Summary The Costs, Distractions and Risks in a Stand Alone Mexican Facility are substantial. The Costs shown illustrate the added costs beyond the production costs. The Distractions will add costs to the cost equation as the plant management will be required to focus on these elements and thus de- focus on the plants production, quality and development. The Risks can be severe and unanticipated. The Offshore Shelter Eliminates these Costs, Distractions and Risks by leveraging its expertise, volume and experience. RESULT: Working within the shelter allows the Factory to focus on its production mission.