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<br />EXHIBIT B <br />Kobelcocompressorsareknowntorunforaverylongtimeandweareawarethatsomeofourcompressorsystemsthat <br />webuiltover30yearsagocontinueinoperation.Oursloganis,ͻ!ƭƉYƚĬĻƌĭƚͧͼandweareknownasaonestopshop <br />forallcompressionneeds. <br />TheNeedforaServiceandRepairShop <br />Existingusersofourcompressorpackageshavelongaskedforaserviceandrepairshopforitsbareshaftcompressors. <br />Alloftheseusersneedareliablecompressoroperationalbetweenscheduled,routinemaintenanceinspections,short <br />turnaroundandtheyturntousbyremovingthecompressorfromthepackageandshippingittoour4,000ft²machine <br />shopinCorona.Thiscostsourcustomersanadditional23weekstogetthecompressorbackandforthfromTexasto <br />Corona,CA.Whileourcustomersloveourcompressors,theyhavevoicedtheirconcernsthatourrepairandservice <br />shopistoofarfromtheiroperationsandourturnaroundistoolong. <br />Kobelcoiswellknownbyallofitscustomersthatitstandsbehinditsproduct.Inourcommitmenttoourcustomersand <br />ourqualityproduct,inJuly2013,wefinallydecided,withfirmandstrongdetermination,tobuildaRepairandOverhaul <br />Shopbytheendof2014tomeetcustomerdemands.Throughanextensivestudy,duediligenceandapprovalprocess, <br />YƚĬĻƌĭƚ͸ƭboardandplanningcommitteeapprovedourinvestmentfor$2.5milliondollarstobuildthiscompressor <br />serviceandrepairshop. <br />KCAhaslongconsideredthatitneededtoestablishalocalrepairshopintheUStoserviceitscompressorsespeciallyin <br />usethroughouttheSouthernStates.PleaseletmerepeatwhatIjustsaid,ͻ!RepairShoptoServiceits/ƚƒƦƩĻƭƭƚƩƭͼ͵ <br />Sinceourusersareincreasingsteadilyeachyear,thedemandfromour54Texasbasedusersmakessensethatwe <br />shouldhaveourRepairShopinthisGreatStateofTexas. <br />KobelcofiledforitsZoningPermitwiththeCityofLaPorteonOct10,2014.TheZoningPermitwasdeniedbytheCity <br />StaffbecausetheStaffdidnotfeelthatYƚĬĻƌĭƚ͸ƭdescriptionoftheworktobeperformedtherewasconsistentwith <br />theirinterpretationfortheSICcodesectionsforthesite,specificallySIC7699.TheyinterpretedSIC7699tobeintended <br />forrepairshopsthatcatertoindividual,personalconsumersandnotacorporate,businessconsumer. <br />SIC7699definition: <br />ͻ RepairShopsandRelatedServices,NotElsewhereClassified Establishmentsprimarilyengagedinspecialized <br />repairservices,notelsewhereclassified,suchasbicyclerepair;leathergoodsrepair;lockandgunrepair, <br />includingthemakingoflockpartsorgunpartstoindividualorder;musicalinstrumentrepair;septictank <br />cleaning;farmmachineryrepair;furnacecleaning;motorcyclerepair;tanktruckcleaning;taxidermists;tractor <br />repair;andtypewriterrepair.(Source:USDeptofLaborWebsite) <br />SICCode7699isabroadclassificationbutitspecificallyreads,ͻͶƭƦĻĭźğƌźǩĻķRepairServicesnotelsewhereĭƌğƭƭźŅźĻķͶ͵ͼ <br />andthisclassificationisEXACTLYwhatKobelcointendstodowiththissite.Therearenootherclassificationcodesthat <br />applytoYƚĬĻƌĭƚ͸ƭintendeduseoftheproperty. <br />WelearnedonNov11,2014,thatonNov10,2014,theCityofLaPorteCityCouncilhadvotedtoadoptthenewerNAICS <br />CodeinreplacementfortheolderSICCode.Further,KobelcolearnedthatthenewZoningOrdinancewouldnotallow <br />NAICSCode811310CommercialandIndustrialMachineryandEquipment(exceptAutomotiveandElectronic)Repair <br />andMaintenanceataclarificationmeetingonNov11,2014.ThatNAICSCodeisthepropercodeforKobelco. <br />However,werequesttheCitytoapproveKobelcotooperateunderSIC7699/NAICS811310underaSpecialConditional <br />UsePermit,sinceouruseisconsistentwithotherusesinthedistrictandwillhavenoadverseimpactontheCity,our <br />neighborsorthepublic. <br /> <br />