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EXHIBIT 1 <br />Exhibit C <br />Rapid Response - Early Warning Signs <br />Negative cashflow, accounts payable backlog <br />Financial problems <br />Overdue loans/liens <br />• <br />Real estate and property tax delinquencies <br />Quality problems <br />• <br />Returns <br />Customer complaints <br />Increasing costs <br />Supply Chain issues <br />Upstream (customers) <br />(both directions) <br />Downstream (suppliers) <br />Competing supply chains <br />Global competition <br />Market issues <br />Market trends <br />• <br />Impacts on supply chain <br />No successor for an aging or sick owner <br />Ownership problems <br />•Change <br />of ownership/new investment strategy <br />• <br />Ownership by conglomerate <br />Lack of equipment and building maintenance <br />Disinvestment <br />Profits used to Improve or buy other plants <br />Excess dividends or other payouts <br />Declining sales and/or <br />Three-year trend declines <br />declining employment <br />Loss of major customers <br />Trend counter to (or worse than) the rest of industry <br />• <br />Poor quality control, poor product design <br />Mismanagement <br />Nepotism, cronyism, irregularities in promotions <br />• <br />Antagonistic labor relations <br />Twin <br />plant with ability to make the same or related product <br />Duplicate capacity <br />• <br />Outsourcing of least -skilled work <br />• <br />Whipsawing against twin plant <br />• <br />Poor treatment of plant by corporate parent or poor managers <br />Management instability <br />High turnover in plant manager, engineer, and labor relations positions <br />• <br />Mysterious new "consultants" directing personnel <br />Business "climate" <br />Management complaints about taxes, energy prices, unions, poor workers <br />complaints <br />Indications that a company is looking for enterprise zone, tax breaks <br />Antagonistic local government/activists <br />Rising land prices due to commercial or residential redevelopment <br />Changes in land use <br />Location in a trendy riverfront or oceanside area <br />Neighboring plants being sold and converted to non -manufacturing uses <br />Inadequate research and <br />Lack of new products <br />development <br />Losing product design and quality to other companies <br />Lack of research to cut energy costs, overhead, and Inventory <br />Changes in <br />Increased labor relation problems <br />management behavior <br />Lack of company "roots" in the community <br />Manager's actions that Indicate they won't be staying long <br />Removal of equipment <br />Equipment moved to a twin plant or sold to a competitor <br />Loss of key equipment or minor pieces <br />Cash crunch/irrational <br />Supplies arriving C.O.D. <br />cutbacks <br />Shortages in supplies causing production snags <br />Paychecks bouncing <br />25D-21 <br />