QNA Consultants, Inc.

1234 NE 52nd Place

Suite 900
Kirkland, WA 98054

(PH) 425-999-9000
(FX) 425-999-9001
www.QNAConsultants.com

FASS FACILITY UPDATE

Prepared for: Michael Fidalgo

Owner

Prepared by: Constance Wu

Sr. Consultant

Fidalgo Auto Sales and Service (FASS) is a company specializing in sales and repair service of
automobiles. FASS plans to expand its market by adding two new outlets in the greater Seattle
area within the next two years.

At this stage of growing its business, Fidalgo Auto Sales and Service has a unique opportunity to
evaluate its current staff and define its future staffing needs, as well as its employee development
and benefits plans.

QNA Consultants, Inc. proposes to work with Fidalgo Auto Sales and Service to assess and update
its current staff and to establish a modern Human Resources Department that will serve the
company's needs into the future.

Proposal Number: 1245-4405

Non-Disclosure …………………………… 2

Fidalgo Auto Sales and Service

Executive Summary …………………………… 3
Client Operations …………………………… 4

The Project
Cost Summary …………………………… 5
Contract and Terms …………………………… 6
Services Provided …………………………… 7
Project Management …………………………… 8
Project Summary …………………………… 9

QNA Consultants, Inc.

Qualifications …………………………… 10
References …………………………… 11

QNA Consultants, Inc.

 THIS AGREEMENT is made this <<Day>> day of February, <<Year>>, by and between QNA Consultants,
Inc. (“Company”) and Fidalgo Auto Sales and Service (“Customer”).

Each of the undersigned parties, and QNA Consultants, Inc. understands that both parties have a desire to
establish an employment, consulting, or other business relationship between the Company and the
Customer.

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[The Proposal Pack Non-Disclosure is a 4 page agreement (a short form version is also
available). See the Proposal Packs for the complete text of the Non-Disclosure agreement]
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General Provisions

Governing Body. This Agreement shall be governed by and construed in accordance with the
laws of the State of Washington. Exclusive jurisdiction and venue shall be in the King County, Washington
superior courts.

Entire Agreement. This Agreement supersedes all prior discussions and writings and constitutes
the entire agreement between the parties with respect to the subject matter hereof. The prevailing party in
any action to enforce this Agreement shall be entitled to costs and attorneys’ fees.

Binding Effect. This Agreement shall be binding upon and inure to the benefit of Customer and
Developers and their respective successors and assigns, provided that Developers may not assign any of
his obligations under this Agreement without Customer’s prior written consent.

EXECUTED as of the date first written above.

Fidalgo Auto Sales and Service QNA Consultants, Inc.

By: ________________________________ By: ________________________________

Title: _______________________________ Title: ______________________________

Date signed: _________________________ Date signed: _________________________

QNA Consultants, Inc.

The Objective…

Fidalgo Auto Sales and Service is a automobile sales and repair facility. Efficient expansion of
facilities and personnel is the primary objective.

♦ Need #1 : Evaluate and develop the Human Resources department.

♦ Need #2 : Hire, train, and develop current and future staff.

♦ Need #3 : Expand the current customer base and increase market share through improved
staff development and training.

The Opportunity…

Fidalgo Auto Sales and Service has a unique opportunity to evaluate and redefine its staffing
requirements as well as its employee development and benefits plans at this transitional stage of
business.

♦ Goal #1 : Evaluate current staffing needs, both within the company as a whole and within the
Human Resources department in particular.

♦ Goal #2 : Develop plans for and reduce costs of recruiting, training, and retaining staff.

♦ Goal #3 : Establish an annual review process to measure staff performance and ensure that
company personnel continue to meet the company's changing needs and goals.

The Solution…

QNA Consultants, Inc. will provide services full time on-site for twelve months, serving as FASS's
transitional Human Resources department.

♦ Recommendation #1 : Fully evaluate current and future staffing needs.

♦ Recommendation #2 : Analyze needs and recommend realignment of current management

staff.

♦ Recommendation #3 : Analyze personnel positions and develop job descriptions for all
positions.

♦ Recommendation #4 : Develop long-term training programs.

♦ Recommendation #5 : Develop annual review process.

QNA Consultants, Inc.

Fidalgo Auto Sales and Service (FASS) began in 1994 as a small automotive sales and repair center
located in Bellevue, Washington.

During the past 10 years, the FASS facility grew from its original 920 square feet to the 50,000 square feet it
occupies today. The staff also grew from the original three Fidalgo brothers to forty-nine full-time staff of
office personnel and repair technicians.

FASS is a successful car sales and repair business, drawing customers from all over the greater
Bellevue/Kirkland/Redmond business district. The company has a reputation for honest sales and excellent
service, with loaner cars as well as weekend and evening hours for customer convenience.

Now that FASS plans to add two more locations with additional employees, the company needs to revamp
its Human Resources department to meet the challenges of its growing operations.

QNA Consultants, Inc.

 Development Costs Price
Project Development – Initial Evaluations $1,500
Total Development Costs: $1,500

Ongoing Monthly Costs:

FT Human Resources Director and Assistant $155,000 /yr
Additional personnel (if requested) $125/ hr
Total Ongoing Monthly Costs: $12,916

Miscellaneous Costs:
Training program material development $1,575
Printing of training program materials- 25 copies N/C
Marketing & Services- Marketing campaign materials $3,000
Quarterly Management Reports $675
Total Miscellaneous Costs: $5,250

TOTAL AMOUNT $161,750

TOTAL MONTHLY AMOUNT $13,479
TOTAL YEARLY AMOUNT $161,750

Standard Disclaimer: The numbers represented above are to be used as an estimate for the projects
discussed. The above Cost Summary does in no way constitute a warranty of final price. Estimates are
subject to change if project specifications are changed or costs for outsourced services change before being
locked in by a binding contract.

QNA Consultants, Inc.

Setup Fee: 25% first month at contract signing
Any other balances owing

Fees Recurring Monthly: To be billed on monthly invoice plus

any additional billed hours from prior month
Due upon receipt of monthly invoice
Net 15

Fees Recurring Quarterly/Yearly: To be billed on monthly invoice

Net 15

Customized / Extra Reports: To be billed on monthly invoice

Net 15

Minimum Term of Contract

This contract shall extend for 12 calendar months, commencing on the first day of the month following
completion of the conversion process. Thereafter, Contractor shall provide services described herein on a
continuing monthly basis at the current fee schedule. Contractor shall disclose the current fee schedule a
minimum of 30 days prior to the end of the initial contract term. In the event that both parties agree to a new
contract for a period of 12 or more months, fees shall be determined at the time of signing the new contract.

Cancellation of Contract
Either party may terminate this contract with 90 days notice. If Client notifies Contractor of termination prior
to end of 12-month initial term, Client shall pay for all contracted services through the end of the 90-day
notice period or to the end of the initial term of contract, whichever period is longer.

No pre-payment penalties shall be assessed for advanced payment.

A late payment fee of 15% of total due will be assessed on any account past due by 30 days.

Final terms and conditions of Work to Be Performed will be provided in the Contract for Services.

THIS DOCUMENT IS PROVIDED FOR SAMPLE PURPOSES ONLY. IT IS NOT A LEGAL DOCUMENT.

QNA Consultants, Inc.

QNA Consultants will provide the following services to Fidalgo Auto Sales and Service (FASS). Services
listed here include pre-production, production, and post-production services, unless otherwise covered
under a separate agreement.

♦ Analyze HR Staffing Needs – FASS's single HR employee is unable to meet the requirements of
this growing company. QNA Consultants will evaluate the HR needs and make recommendations
for staffing this area, including the total number of staff members and the skills needed.

♦ Modernize Management Staff –To date, all managerial positions have been filled by internal
promotion. While this may have served the company well until now, this policy may not be in the
company's best interest moving forward. QNA Consultants will conduct a study of FASS's present
and future managerial needs, assess skills and experience of current managers, and make
recommendations about adding new managers and/or upgrading skills to better match the
company's needs.

♦ Develop Job Descriptions – QNA Consultants will develop job descriptions for all staff positions,
detailing skills needed, responsibilities, and required work habits. This will allow FASS to more
easily rank its employees for advancement and raises, and will provide employees an accurate
analysis of how well they are performing their jobs according to the company's expectations.

♦ Develop Recruiting Strategies – QNA Consultants will develop a plan to efficiently recruit new
staff members whose skills match the company's needs.

♦ Update Career Training Programs –QNA Consultants will review current skill levels of staff
members and future needs of the company, and recommend training programs that will develop
desired skills and will cross-train staff as efficiently as possible.

♦ Design Process for Annual Review– QNA Consultants will recommend a process for annual
assessment of staff skills and productivity, as well as the annual assessment of organizational
efficiency and customer satisfaction. This will allow staff and management a predictable method for
monitoring and improving services.

QNA Consultants, Inc.

Based on Fidalgo Auto Sales and Service’s needs for this project, QNA Consultants has put together this
proposed project management team:

♦ Client/Project Team Contact: Miguel Rodriguez

The Team Contact manages all communication between the QNA Consultants team and FASS. To
maintain the schedule and avoid miscommunication, all project-related issues should be funneled
through this contact.

♦ Project Manager: Sandra King

The Project Manager ensures that the project meets the goals and schedule within the specified
budget constraints.

♦ Team Leader: Nora Robertson

The Team Leader manages the everyday details of the project. The Team Leader will manage all
the activities of the subordinate team members and answers directly to the Project Manager.

Detailed resumes of each project team member are available upon request.

QNA Consultants, Inc.

Prepared for: Michael Fidalgo, Owner February 20
John Fidalgo, VP Operations

Prepared By: Constance Wu

Senior Consultant

Fidalgo Auto Sales and Service (FASS) is an automotive sales and service facility that plans to expand into
the greater Seattle market. The first step toward this goal is to create a Human Resources (HR) department
capable of serving the personnel needs of this growing company.

The QNA Consultants project team would be located on-site full-time for a period of twelve months to serve
as a transitional Human Resources department. During this period, the QNA team will develop job
descriptions and establish standard training and review practices, as well as assess the needs of the
company and the skills of the current personnel. QNA will recommend new positions, assist in recruiting
efforts, and train the company's staff to take over all HR responsibilities. This will result in the establishment
of a modern, efficient Human Resources department designed to handle FASS's needs for the future.

QNA Consultants, Inc.

QNA Consultants has provided business consulting services for more than twenty years. We take pride in
consistently delivering the most professional level of services available in the greater Seattle area. We
understand the fast pace of modern business and are positioned to deliver the best results as efficiently as
possible. Our staff is required to continually update their skills and education levels to stay current with the
latest business practices and requirements. Out mission is to make your business succeed.

QNA Consultants specializes in Human Resources, including:

• Targeted recruitment strategies
• Specialized training programs
• Staff development plans
• Administration of employee benefits
• Discrimination issues and disciplinary procedures
• Employee review and retention programs

Clients that have worked with QNA Consultants, Inc. include:

• LetsGo Exercise, Inc.
• HearthFires
• Redwing Investment Group
• Miles Paper Products
• Best Buffets
• FSF Furniture Stores
• Comend Industries

Excellence is always our first goal at QNA Consultants: that's why we're number one in the Human
Resources field!

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QNA Consultants, Inc.

In our two decades of business, QNA has served the needs of over five hundred clients. The names listed
below are just a few of our consistent clients who have volunteered to serve as references. Please feel free
to contact them about their experiences with QNA Consultants, Inc. You can also find more references
listed on our web page: www.QNAConsulting.com'

LetsGo Exercise, Inc.

Bernice Dalton
VP, Sales
Phone: 206-999-2121
E-mail: BerDalton@LetsGoExcercise.com

Redwing Investment Group

George Prescott
Sr. Partner
Phone: 360-559-9090
E-mail: Geo.Prescott@RIG.com

Miles Paper Products

Robert Rodriguez
HR Manager
Phone: 206-999-5555
E-mail: RobRod@MPProd.com

Comend Industries

Carl Nguyen
President
Phone: 360-599-9199
E-mail: cangu@Comend.com

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QNA Consultants, Inc.