SMF & Machine Tools, Inc. 14824 Rockbridge Road

Little Rock, AR 72206 Toll Free 800-643-5839

PROPOSAL

For

LINEACORD PCL

PLASMA & OXY

Distributed by: SOITAAB USA

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SUMMARY

SUMMARY 2 EXECUTIVE SUMMARY 3 PRICES 4 SALES CONDITIONS 5 TECHNICAL CONFIGURATION 6 ADDITIONAL PARTS NOT INCLUDED IN THE SUPPLY 18

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EXECUTIVE SUMMARY

At Soitaab Impianti S.r.l. everything we do is to improve returns from production assets. This is done by increasing the availability and utilization of the people, equipment, energy and inventories. In terms of asset utilization one Soitaab commitment is specific to the fundamental philosophy of automation systems. Soitaab customers will never be forced into a system replacement every 10 to 15 years. Soitaab is unique in the market place in providing a Lineacord cutting system from the start, Lineacord was designed to evolve, remain a technology leader, and endure without end. Introduced in 1990, the Lineacord was the first industrial cutting system that was modular in design and based on standards. Part of asset utilization is asset investment preservation. In automation systems, re-investment due to technology advances can be optimized with Soitaab Impianti. BENEFITS OF THE SOITAAB LINEACORD SOLUTION Site Benefits Lowest Life Cycle Costs Lower Project Costs Competitive Advantage Information Technology Reduced engineering costs Reduced Project Risk Local Support

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PRICES

Dear

We are pleased to offer for your consideration the following proposal covering: No. 1 LINEACORD “PCL 14 ’ (45) – PLASMA and OXY 12’ x 45 ’ (useful cutting area) equipped

with: No. 1 MASTER FOR PLASMA VERTICAL CUTTING

Single Motorized Slide for plasma cutting complete of AVC, TAG, Anti-collision and anti UVA

No. 1 PLASMA POWER SUPPLY HYPERTHERM ***

Model Hyperformance HPR 260 XD with manual gas console No. 1 SLAVE FOR OXY VERTICAL CUTTING equipped with

Single motorized slide equipped with automatic electric ignition and capacitive height control

No. 1 NUMERICAL CONTROL SOITAAB CNC II TOUCH SCREEN No. 1 SOFTWARE CAD/CAM EXPERT CUT PLUS

MACHINE PRICE IN USD USD $234,000.00

*** Optional: Plasma Power Supply Hypertherm HPR 400 XD with manual gas console add $20,000.00 to price of machine in lieu of HPR 260XD

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SALES CONDITIONS

FOB Little Rock, AR Delivery 1 week ARO, subject to prior sale Payment Net before shipment Warranty 12 (twelve) month warranty from the date of commissioning of the

machine at the Customer’s site. The warranty includes the replacement free of charge of all found-defective machine components. The warranty will provide travel for reasonable work if a problem cannot be identified and correct by the user and a trained technician is required.

The warranty expires automatically if the End-user uses non-genuine

replacement parts, unless prior authorization of SOITAAB technical staff.

Validity This offer has 30 days validity.

Installation, Start-up $950.00 per 8 hour day Training

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TECHNICAL CONFIGURATION

No. 1 LINEACORD “PCL 14’ (45) – Automatic, Gantry CNC Controlled SOITAAB, PLASMA and OXY Cutting Machine

BASIC TECHNICAL FEATURES

Rail span 14’ 3/4" Useful cutting width 12’ Rail Length 47’ Useful cutting length 45’ Power Supply 460 V + 5% 60H + 1,5H Three Phase Operations, Maintenance and Electrical Manual in English language, on electronic/ optical support

THE GANTRY

The gantry is an isostatic rigid framework of steel box-girder construction. All SOITAAB machine structures are specifically designed to withstand the current weight of the installed torch suspensions and tools. The gantry consists of:

Double system of transverse guiding (X axis) with cylindrical bar coupled with freeway rollers.

No. 2 (two) bearing shoulders with both sliding and contrast rollers, speed change BRUSHLESS MOTORS A.C. - DIGITAL DRIVERS type on gantry axis for longitudinal and transverse (X - Y and Q axis).

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THE LONGITUDINAL MOTION The longitudinal motion is obtained by:

Twin drive system, with AC motors Digital drivers, resolver encoder simulator Planetary gearbox Rack and pinion drive system

The speed change motors and the pinion are coupled to the rack fitted to the control girder. Besides, the motors are caused to adhere to the rack by means of a spring-loaded system operating at a preset pressure to take up slacks when moving.

THE TRANSVERSE GUIDE SYSTEM On the top side of the transverse bridge is mounted:

Double system of linear guides protected with bended metal sheet High precision rack for the movement of the MASTER carriages Spring-loaded system is also mounted to permit the constant and precise connection

between rack and pinion

THE TRANSVERSE MOTION The transverse motion along the machine main bridge is obtained by a MASTER torch suspension directly controlled by the CNC. The system of transmission consists of:

Gearbox Motor Rack and pinion drive system Spring-loaded system

LONGITUDINAL CABLE TRACK CHAIN for longitudinal cable and hoses movement.

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THE LONGITUDINAL RAILS The longitudinal rails consist of:

HE sections of bearing girder Precise machined rails complete with adjusting and levelling screws Leveling screws Foundation bolts, nuts for both joining sections and related anchor plates Anchor plates for machine foundations

STANDARDS Tolerances on the diagonal are according to DIN 8523/ISO 9013 standards Repositioning accuracy: is ±0.01” on 33ft Rapid Positioning Speed: 66 ft/min

No. 1 AUTOMATIC GAS DELIVERYING SYSTEM by means of Pressure Regulators and

Proportional valve on Cutting Oxygen controlled by CNC. The gas delivering system manually settable on the Heating Oxygen and Gas and is fully automatic Cutting Oxygen

Each single torch has a piercing capacity of 4” (one torch). Each single torch has a cutting capacity of 10” with cutting table’s height in special version (lower than standard height) Two torches can cut up to 8” with cutting table’s height in special version (lower than standard height) Four torches can cut up to 4” with cutting table’s height in standard version of 25”

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THE PRESENT MACHINE IS EQUIPPED WITH:

No. 1 MASTER CARRIAGE FOR PLASMA VERTICAL CUTTING

Single Motorized Slide equipped with: Plasma Torch holder and complete of:

Vertical Motorized high speed ball screw Plasma torch holder Automatic height control by arc voltage Automatic initial positioning via plate sensing by mean of the torch itself, TAG system Anti UVA shield Cable track chain for transverse movement Magnetic breakaway Anti collision system for plasma torch Plasma CNC interface

Diode Laser for helping the machine repositioning

No. 1 SLAVE OXY FOR VERTICAL CUTTING with burner (acetylene) support holder.

Single Motorized Slide equipped with:

Oxy burner holder Mechanic, electric and software limit switches Backlash-free guides Oxy-fuel cutting torch for 10” cutting, complete with 1 set of nozzles Automatic electric ignition Capacitive height control

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The HPR260XD combines fast cutting speeds, rapid process cycling, quick changeovers,

and high reliability to maximize productivity, and is now available with new patent-pending

True Hole technology.

Virtually dross free cutting capacity

- mild steel 32 mm (1 1/4")

Production pierce capacity

- mild steel 38 mm (1 1/2")

Maximum cutting capacity (edge start)

- mild steel 64 mm (2 1/2")

Capacity

Mild Steel

Dross free

Production (pierce) Severance (edge starts)

32 mm (1-1⁄4") 38 mm (1-1⁄2") 64 mm (2-1⁄2")

Stainless Steel

Production (pierce) Severance (edge starts)

32 mm (1-1⁄4") 50 mm (2")

Aluminum Production (pierce) Severance (edge starts)

25 mm (1") 50 mm (2")

Speed*

(Mild steel)

Book specification at highest output current

12 mm (1/2") 3850 mm/m (145 ipm)

Cut angle ISO 9013 range** 2-4

Weldability Ready to weld

Process gases

by material

(Plasma/shield)

Mild steel

Stainless steel

Aluminum

02/Air, 02/02, Ar/Air H35/N2, N2/N2, H35-N2/N2, F5/N2, Ar/Air, Ar/N2 H35/N2, Air/Air, H35-N2/N2, Ar/Air, Ar/N2

Process amps

(Cutting)

Not all processes available

for all materials

30-260

* Note: Take care in comparison: competitors often show maximum cutting speeds rather than speeds that deliver the

best cuts, as shown above. Cut speeds listed above deliver best cut quality, but cut speeds can be up to 50% faster.

** ISO 9013 is a standard that defines cut quality of thermally cut parts. The lower the range (range 1 is the lowest),

the smaller the angle on the cut face. Cut angle in range 4 is better than in range 5.

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No. 1 NUMERICAL CONTROL SOITAAB CNC II TOUCH SCREEN

Gantry management the portal (Y. Q). Y-Q differences immediately detected and corrected.

Control digital drivers by means of optical fibers. This system guarantees the total immunity to the industrial electric interference and those in radio frequency generated by the plasma source during high frequency.

No analogical tuning are necessary on the axes drivers.

Management and setting of the height control of for the torch is fully digital with indication of the operation and the arc voltage on screen

Possibility of setting the cut height of the plasma directly from "part program"

Possibility to set different accelerations for plasma, marker, oxyfuel etc.

Automatic control of acceleration and deceleration.

Total management of the systems of kerf compensation

SOFTWARE CONFIGURATION

Contemporary JOG on different axis

Software management up to 8 axis

Linear and circular interpolation.

User friendly and intuitive interface menu of machining data.

Cutting technology selection via menu

Programming and immediate graphical output of the programmed part program loaded (CODE & SHOW)

Programming languages ISO permits to describe parametric geometrical figures (points, circle etc.) even if not followed by the working tool, but useful to define a cutting process.

Millimeters / Inches programming.

DXF and DWG input file module, lead in and lead out profile definition and positioning CNC cutting program output

Automatic cycle of defined points

Memorization edges of programs to perform automatic sequence

High program elaboration capability (1000 blocks by second)

Graphical tool movement simulation, selection of graphical part program and immediate connection to the part program (interactive graphical editor)

Import of dxf and dwg files

75 parametric figures with graphical support

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Parametric figure page example

Single parametric figure Example

Parametric Technology

Figure repetition

Control of max 12 carriages

Cutting parameters data base (Oxy Fuel, Plasma and technology).

Data base with tips OXY code

Graphical manometer simulation on video, showing the correct gas pressure values in real time, available only for oxy fuel technology.

Real time visualization on video of the Plasma Arc Voltage during the cutting process and possible modifying via button function.

Possibility of plasma flame switching off with continuing machine movement to minimize the plasma lead in and lead out marks (plasma stop and fly)

Possibility to program a fixed height cycle for a best execution on small holes (especially for plasma)

Automatic calculation of the number of piercing for plasma technology, with the possibility of fixing a maximum value and an alarm signal when the value has been reached; after that the operator can decide to continue the cutting or to stop the machine and substitute the used consumables

Automatic freezing of plasma arc voltage on the corner contours.

Automatic diagnostic system of the cinematic chain.

Block retrace management.

Program block retrace after an electrical power supply shut off (memory back up).

Starting from a defined point

Graphic choose of the starting point

Return on the profile in cutting mode after manual exit (especially for oxycut)

Starting from a block program, automatic axis and tools repositioning

10 recordable origins

Mirror cutting

Protected working areas definition

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Programmable free scale ratio

Plate alignment

Program rotation

HARDWARE CONFIGURATION

Color graphical monitor 15,3”

Touch Screen

Integrated powered supply

PC with minimum features of:

Intel processor

hard disk 80 G byte

RAM 512 Mb

Second/third level cache 512K

Basic SW, Windows XP license, installation disk.

2 Serial RS232 (COM1 and COM2) complete, one of them (COM2) configured as RS232/422/485

1 RJ45 Input ETHERNET 10/100 MHZ for net connection

4 USB 2.0 Input

1 VGA Output

2 PS2 standard input for mouse and keyboard

Digital servo drive command by means of optical wire

Joystick machine movement

Functional keyboard

TELESERVICE

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No. 1 Software Package CAD/CAM Lantek Expert CUT PLUS OXICUT, PLASMA for Windows The better solution for the programming of the cutting machines.

Lantek-Expert is a CAD/CAM system especially conceived to automate the programming of cut machines. It is the result of more than 10 years of experience collaborating narrowly with manufacturers as well as with users of this type of machines. Conjugate perfectly the machine technology with the needs of programming and management of the client.

Lantek-Expert answers to a new conception of programming system. Adapt the power of the new data processing tools to the technologies of the cut machines and needs of the companies to make easier, rapid and efficient the programming labor and generation of all type of data for budgeting, control of production, etc. Permits also the connection with systems of Control of production, etc.

INTEGRATION AND DIRECT ACCESS BETWEEN ALL MODULES Design, Nesting, Generation of the cut sequence, Lists, Import DXF, Management, etc. they are integrated of such form that from any module can be acceded to anyone of the others. This advanced functionality gives to the system a huge speed and facility of use. Any modification, of, for example, the geometry of a part, affects directly in the nesting and cut sequence.

CONNECTIVITY WITH EXTERNAL SYSTEMS LANTEK Expert answers to a totally open system in management, permitting to be connected to systems of production Management, as well as in design (through the interface DXF will be able to connect with most of the CAD systems). This interface DXF allows the automatic reading of a files list.

EASY TO USE Using WINDOWS programs all the options are located in similar places, giving as result an easier learning. Lantek-Expert is very easy to use. All the system options are represented through icons that are at all times within reach of the hand. The interface WINDOWS permits that all times the options are resembled with those of other programs.

CONFIGURABILITY Lantek-Expert is a system easily configurable. User will be able to have more used options in the screen zones than wish, obtaining a greater speed and more advantages of the program.

FAST Lantek-Expert integrates in a same program all the necessary options for work in sheet : Design, Nesting, Generation of the cut sequence, Lists, Import, Export, etc. This, the utilization of a common data base and the improvement and automation of all the processes causes that system will be very fast. Lantek-Expert is prepared at the same time to facilitate and make of rapid way any modification in anyone of their processes (Design, technology, nesting, cut sequence, management, . .). Thus, any modification, for example, in the design of a part has its immediate response in the rest of the already accomplished work.

AUTONOMY Lantek-Expert works of totally autonomous way. Have CAD 2D guided to the cut process Nesting for the automatic arrangement of the parts in the sheet Automatic generation of the cut sequence Postprocessors and communication with machines Import parts and data export Data base All type of lists

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2D-CAD MODULE Lantek-Expert integrates a 2D CAD module for the design of all the parts to cut. Have, in addition to all the classic options in a CAD system (Points, segments, arcs, circumferences, rects, polines, Rounds, Chamfers, Move, Rotate, Copy, etc.), of a set of geometric options to facilitate the design of parts to cut (Rectangles, Obrouns, Pulleys, One touch forms, Parametrics). Lantek-Expert has an automatic and manual annotation option that will permit check of the dimensions of the unitary part before cutting it. The technology of the part : In addition to the available technological options when generating the cut sequence, Lantek-Expert has technological options by parts :

Entries/Exits : In automatic as well as in manual with the possibility of assign in addition to dimensions, the types of Entries/Exits by forms of parts or holes.

Curls or loops : For the live angles generation and Chamfers

Marks and cut technology : Mark by powder, Punch, Plasma, Texts. Tables of cut technology to apply depending on parameters as thickness, material, etc.

Part ties to sheet : To avoid warnings in parts when cutting parts of large dimensions and avoid to fall.

Chamfers and control of triple and revolving torches. PARTS DATA BASES Lantek-Expert works with a public parts data base, what permits user to keep and to accede with great facility to the parts data ( part Names of up to 30 characters, plan References, Client, Material, thickness , Quantities, delivery Periods, dates, etc.). Parts selection is made in addition to form graph to guarantee from a first moment the access to the wished part. All these and the rest data generated by the program (weights, perimeters, areas, %optimizations, times, ...) can be recovered from any database management system. What gives to Lantek-Expert its character of open and flexible system and to the client the possibility of automating in addition to the programming management. NESTING OR SHEETS OPTIMIZATION Lantek-Expert includes all the necessary functions to accomplish a nesting manual, these functions are: Parts copy in grid, copy in a zone of the sheet, part drafts, etc..

MANUAL NESTING Lantek-Expert includes all the necessary functions to accomplish a nesting manual, these functions are: Parts copy in grid, copy in a zone of the sheet, part drafts, etc..

INTERACTIVE AND AUTOMATIC NESTING System accomplishes automatically the nesting plan of irregular parts. Different parts optimization in multi-torch sheets, these can be at the same time different. Nesting takes advantage the holes that let the parts to put other parts. Can be configured the following parameters: the separation distance between parts, the degree of optimization, margins of the sheet, the corner of beginning of placement of the parts, configuration of the rotation degree of the parts. These parameters allows to configure the nesting wished. System transacts quantities of equal sheet in order to generate the minimal number of CNC programs. The functions that are incorporated in this module, give user the possibility of accomplishing nestings to his will. For this has blockade functions/ parts unfreezing, generation groups parts, erased parts, etc.. The manual functions can be mixed in any moment with automatic functions. Remnants generation and their used.

Possibility of defining the useful sheet, to avoid irregularities of the sheet.

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ADVANCED TECNOLOGY PROCESSOR Once disposed parts in the formats to cut, Lantek-Expert creates in a automatic form the cut sequence. Nevertheless within this option can be modified this sequence as well as the cut technology and in any moment the Entry/Exit points of the parts, adding, erasing or moving the already willing. If a part, or several, that have been nestled and cut in the sheet must be geometrically modify as for example a modification in a hole or the incorporation from a new hole, the cut sequence is remade automatically. In this module are incorporated the following functions:

Entries/Exits manual as well as automatic. Exist multi-torch different types of entries/exits that cover all the possible needs. They can be configured all the parameters of these entries/exits. These entries can be modified in the sheet

Manual and automatic bridges. The bridges can be positive and negative. The parameters of the bridges are configurable.

Multi-torch for the placement of the parts in the sheets obey in addition to a maximum optimization criteria, to criteria of cut speed.

AUTOMATIC GENERATION OF THE CUT SEQUENCE System generates in a automatic way the cut sequence. For this accomplishes a study on the most adequate sequence to follow, detect parts, holes and parts in the interior holes. It can be configured previously the order that is going to follow the automatic mode, as well as all technology parameters that affect to the automatic generation of the cut sequence.

INTERACTIVE GENERATION OF THE CUT SEQUENCE Through the utilization of these interactive generation functions of technology user can define the wished cut sequence, in such a way that always maintains the control of the sequence that will follow the cutter. Only it will be necessary to dial the cut order selecting the part or the contour to cut.

ISO INTERFACES, LANTEK -Expert It is available an interface for CNC files read in format ISO. This interface reads these files and translates them to format of Lantek-Expert . This allows any geometric modification. Other interfaces CNC are available under budget.

STORAGE OF INFORMATION IN DATA BASES All the information of the used parts, cut perimeters, cut times, etc. is saved on the data bases in format DBASE of such form that through any system of data bases management of the market, can have access to such information. Through this functionality user will be able to generate programs to obtain budgets, etc.

LISTS System generates the following information: * List of the plan nestled in the sheet. This list supplies to user the information machine respect of the work that must accomplish, indicates the sheet to use, the drawing of the plan nestled and the list of the parts.

CONFIGURABLES LISTS LANTEK supplies all the information of its data bases, what permits final users, without technical advanced, be made their own lists.

AUTOMATIC PROCESSES User will be able to define automatic processes, what will permit him to obtain important productivity improvements upon eliminating the need of manual data introduction generate the sequence of the wished processes. For example: It can be defined a process that read automatically the data generated by a management system, Part name, material, thickness, quantity of parts to accomplish, clients, ... and name of the part in format DXF. The process will

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place the parts in a automatic way in the sheets, will be accomplished the CNC generation automatic of all the generated sheets and finally it will be able to indicate automatically all the wished lists.

REQUIREMENTS The requirements of hardware and advisable software to use this CAD/CAM system are the following:

HARDWARE MINIMUM REQUIREMENTS (not included in the supply) : Processor:

Intel® Core 2, 3GHz or superior 2GB RAM Memory Graphic VGA Color 1280x1024 DVD Driver Internet connection for tele service support

Operative system: Windows® XP ProfessionalSP3, Windows® XP Professional x64 Edition, Windows7

Mouse Graphic VGA Color 1200x1020 Internet connection for remote service assistance

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ADDITIONAL PARTS NOT INCLUDED IN THE SUPPLY:

Gas Supply Line Anchor plates for machine foundations on our drawings Electrical attachments and connections for machine electric supply and Gas cables Hardware (PC) for the software package Printer Civil works referred to machine installation Electric works referred to machine installation Pipe connection between fume filtration unit and cutting table Exhausted fume chimney Mechanical installation of the machine according to the lay-out delivered by Soitaab Cutting table Fume Filtration Unit Cutting table

CE Safety Arrangements All SOITAAB Machines are strictly following the European standards for safety purposes (EN60204-1). The machines include the following safety devices:

Anti-crash sensing rubber rope ring surrounding the whole machine working area

If you have any questions or need further information please do not hesitate to give us a call. We would like to thank you for the opportunity to quote your machinery needs and look forward to your valued order. Regards, SOITAAB USA Roger Huntsman President