Investment Return Analysis for Engaging Shubnum's Services and Products   Three case studies are provided to show how your investment in us, in the form of consulting fees, manifests in financial returns to you, in a specific assignment. Each case study shows a specific assignment that engaged our services. In addition, each case study shows an investment return analysis based on the two different types of fee structures used by us. Fee structure We use two different types of fee structures, designed to meet your risk level and your budget constraints. They give you a measurable output as a result of our efforts. They are also designed to provide us with a fair compensation based on our efforts, our risk in putting out the effort, and a fair return to our investors. Our software product fees include the licensed use of our software technology on a per-transaction basis. For each assignment, the returns are calculated based on the two different types of fee structures that are used to engage our services. Direct Product and Services billing method This method uses a services charge-out rate of US$ 35.00 to US$ 300.00 per hour for services provided at our facilities. Such services may include investigations of current practices, proposing alternate strategies, managing a project to facilitate contract documents, resourcing, procuring and administering an assignment and to apply our software technologies. Rates charged to perform services at your facility such as feasibility studies, preliminary investigations, review of current, local and regional resources etc., are based on Standard Rate Categories as prescribed by World Bank standards. Services may also include a one or two day training session at US$ 3750.00 per day at your facility plus travel/lodging expenses; at your facility. The fees for the use of software products, is for each transaction and is based on a declining percentage. The licensing fees are calculated on a sliding scale from 6% to 1% as the value of the transaction amount in different categories increases from US$ 1.00 to US$ 500,000.00 and above. Please request a detailed breakdown of such charges and their application to different categories. Commitment Fee and Performance Revenue Sharing method This method is based on a commitment fee and sharing of savings based on our performance. Our performance in this context is defined as measurable savings to you from your present budget for an item, an assignment or a project. The budget is defined and based on standard industry historical pricing with appropriate escalations and contingencies, for the time and place that the transaction is to take place. In other words the budget has to be a fair and a known element that an organization is funded, willing and capable of paying for the transaction. The method requires an initial investigation fee of US$ 2450. An additional fee is earned at 50% of the savings. This revenue sharing is only triggered if there is a savings from the budget as defined above. No additional fees are earned or expected if we cannot affect a tangible saving to you in the transaction. Note that these are not a method of savings as defined by a type of 'Value Engineering" which attempts to shave off costs by re-engineering to reduce the overall value. In contrast, our methods retain the contents, performance and integrity of the transaction. Returns You will notice that the return on each transaction, are substantial. This is achieved without sacrificing the quality, content or performance of the transaction.   Case Study 1 Investment Return Analysis Folsom State Prison, Represa California Direct Product and Services Billing Method Commitment Fee and Performance Revenue Sharing Method   Savings   Savings  a) Budget   $ 6,817,500   a) Budget   $ 6,817,500                   b) Procured Price   $ 5,916,599   b) Procured Price   $ 5,916,599                   c) Tangible Savings (a-b)   $ 900,901   c) Tangible Savings (a-b)   $ 900,901                   d) Productivity Savings (280hrs x av of $90/hr) Proj Director, Contract Manager and Staff time   $ 25,200   d) Productivity Savings (280hrs x av of $90/hr) Project Director, Contract Manager and Staff time   $ 25,200                   e)        e) Revenue Sharing of direct tangible savings (50% of c)   $ 450,451                 f) Total Savings (a-b+d)   $ 926,101   f) Total Savings (a-b+d-e)   $ 475,650    Investment   Investment  g) Product Fee (Modules lll and V 3.2% of budget 'a')   $ 170,438   g) Commitment Fee ( $2500 fixed fee)   $ 2,500                   h) Services Fee (315 hrs @ $125/hr)   $ 39,375   h)                        i) Total Investment (Product and Services Fees g+h)   $ 209,813   i) Total Investment ( Commitment Fees 'g' )   $ 2,500    Returns   Returns  j) Return on Investment (f/i x 100)   441%   j) Return on Investment (f/I x 100)   19026%                   k) Time Elapsed   60 days   k) Time Elapsed   60 days                   l) Annualized Rate of Return (365 /60 x j )   2683%   l) Annualized Rate of Return ( 365/60 x j )   115742%  Case Study 2 Investment Return Analysis Franchise Tax Board, Sacramento California   Direct Product and Services Billing Method Commitment Fee and Performance Revenue Sharing Method   Savings   Savings  a) Budget   $ 1,500,000   a) Budget   $ 1,500,000                   b) Procured Price   $ 862,000   b) Procured Price   $ 862,000                   c) Tangible Savings (a-b)   $ 638,000   c) Tangible Savings (a-b)   $ 638,000                   d)        d)                        e)        e) Revenue Sharing of direct tangible savings (50% of c)   $ 319,000                   f) Total Savings (a-b)   $ 638,000   f) Total Savings (a-b-e)   $ 319,000    Investment   Investment  g) Product Fee (Modules lll and V 3.7% of budget 'a')   $ 55,500   g) Commitment Fee ( $2500 fixed fee)   $ 2,500                   h) Services Fee (52 hrs @ $125/hr)   $ 6,500   h)                        i) Total Investment (Product and Services Fees g+h)   $ 62,000   i) Total Investment ( Commitment Fees 'g' )   $ 2,500    Returns   Returns  j) Return on Investment (f/i x 100)   1029%   j) Return on Investment (f/I x 100)   12760%                   k) Time Elapsed   45 days   k) Time Elapsed   45 days                   l) Annualized Rate of Return (365 /60 x j )   8347%   l) Annualized Rate of Return ( 365/60 x j )   103498%  Case Study 3 Investment Return Analysis California State University, Sacramento California Direct Product and Services Billing Method Commitment Fee and Performance Revenue Sharing Method   Savings   Savings  a) Budget   $ 2,300,000   a) Budget   $ 2,300,000                   b) Procured Price   $ 1,650,000   b) Procured Price   $ 1,650,000                   c) Tangible Savings (a-b)   $ 650,000   c) Tangible Savings (a-b)   $ 650,000                   d) Additional Utility Rebate Savings   $ 640,000   d) Additional Utility Rebate Savings   $ 640,000                   e)        e) Revenue Sharing of direct tangible savings (50% of c)   $ 325,000                   f) Total Savings (a-b+d)   $ 1,290,000   f) Total Savings (a-b+d-e)   $ 965,000    Investment   Investment  g) Product Fee (Modules lll and V 3.2% of budget 'a')   $ 73,600   g) Commitment Fee ( $2500 fixed fee)   $ 2,500                   h) Services Fee (95 hrs @ $125/hr)   $ 11,876   h)                        i) Total Investment (Product and Services Fees g+h)   $ 85,476   i) Total Investment ( Commitment Fees 'g' )   $ 2,500    Returns   Returns  j) Return on Investment (f/i x 100)   1509%   j) Return on Investment (f/i x 100)   38600%                   k) Time Elapsed   60 days   k) Time Elapsed   60 days                   l) Annualized Rate of Return (365 /60 x j )   9180%   l) Annualized Rate of Return ( 365/60 x j )   234816%