Palms & Company Document

"How Palms & Company calculates what it charges Russian companies for its expert consultancy services"

by

Dr. Pyotr Johannevich van de Waal-Palms

EXPENSES

Palms & Company provides expert advice and consulting services to Russian businesses.

Our expenses are

Rent, telephone, electricity, computers, paper, fax paper, software, secretaries, translators, interpreters, lawyers, accountants, travel, automobiles, salaries, taxes, social funds, office equipment, internet services, data base maintenance, copy machines, fax machines, printing machines.

We have these expenses not only in our U.S. offices but also in offices in Russia and the CIS and 40 Western countries.

We charge our clients $250 per hour, when we work to assist them with their projects and this covers all these expenses which are shared by all our clients when they make these payments.

Clients pay only for the time they use. It is is fair way to share the costs.

The concrete results are far greater than the cost and our clients always are satisfied that are services were worth what it cost them.

Typical costs for capital syndication

COST OF SOLVING QUESTIONS OF CAPITAL & FINANCE

The cost will be different for each company depending upon the amount of capital they require. It is not possible for you to pay later from my money I have given to you. I cannot pay myself for working for you.

Financing Amount ...........Retainer..Commision at Closing

$1,000,000 .................$100,000 10.0% ......1.0%

$2,000,000 .................$150,000 7.5% .......1.5%

$3,000,000 .................$200.000 6.66% ......1.75%

$4,000,000 .................$250,000 6.25% ......2.0%

$5,000,000 .................$300,000 6.00% ......2.5%

$10,000,000 ................$400,000 4.00% ......3.0%

$20,000,000 ................$500,000 2.50% ......3.0%

$40,000,000 ................$600,000 1.50% ......3.5%

$50,000,000 ................$700,000 1.4%% ......3.75%

Included in this work are the preparation of:

• Pre-investment analysis
• calculation of amount and use of proceeds of capitalization
• business plan
• cash flow projections
• ROI projections
• Company valuation (pre-investment)
• marketing study
• feasibility study
• concurrence agreements with instrumentalities of government having competence.
• private placement memorandum
• due-diligence report
• structuring of transaction
• syndication to potential institutional investors
• search for strong western operating company co-investor

For discussions in Russian language in Moscow 7-095-324-6134 æÁËÓ 7-095-324-4249, Alexander Wislobokov

For discussions in Russian language in United States of America, Washington D.C., Tel: 1-703-818-0508 Fax: 1-703-818-00236 , Email: sanich@juno.com Alexander Goldenberg

For discussion in English or Dutch: 1 425 828-6774 E-mail: palms@PeterPalms.com Dr. Pyotr Joannevich van de Waal-Palms

Offices in Vilnius Lithuania E-mail serg@novatex.lt,
Grigorij Kolesnikov
2012 Vilnius, Zirmunn 58-41, Fax: (3702) 42-54-40 Tel: 3702 72-11-34
Other e-mail: root@gigrin.aiva.lt or novatex@taide.lt

Offices in Gomel, Belarus: David Sticknety, E-mail david@belarus-online.com
IAEWP I.L. U.N. P.O. Box 97 Gomel 246050
Tel: 375-232-54-4404, Pager (Russian only) 375-232-53-9130 - A770

Office in St. Petersburg: Tate Ulsacker, Dun & Bradstreet Nord, Tel: ( ) , Fax ( ) E-mail <idcinfo@cityline.ru palms@m16.medport.ru

UKRAINE Oleg Jourin PhD
P.O. Box 25 Lutsk-23 City Volyn Region, Ukraine 262023
Tel: 380-3322-45521 Fax: 380-3344-30631
http://www.theoffice.net/patron
E-mail: patron@theoffice.net

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