April 1, 2010

A Proposal from John F. Gahran, who has no financial interest in this Initiative

808 Hopkins Avenue, Audubon, NJ 08106 609-605-1496 (cell) jack@gahran.com (email)

Coupons-For-Jobs
Create more jobs now, and keep them, by
supporting local small business

OVERVIEW
The Coupons-For-Jobs Initiative that produces sustainable jobs is intended as a
transition program until the jobs expected from the other already announced
and/or implemented government programs begin to have a more significant effect
(8 months to 2 years from now).

A continuing unemployment rate of 10% (excluding “discouraged workers”) is intolerable -- and

fixable.

The key culprit behind lost retail, wholesale, and manufacturing jobs is low demand for products.
One approach that could create many lasting jobs fast is the Coupons-for-Jobs Initiative.

Here’s how it would work:

•
• Over a 6 month period consumers in high unemployment counties in each state would
receive time-limited (1 month at a time) government Coupons-For-Jobs to purchase
designated goods from local small businesses (500 employees or less). This creates retail
jobs.
•
As retailers replenish their inventories, they create demand for jobs at wholesalers who repeat
this replenishment chain with manufacturers, which creates more jobs (hopefully in the USA).

This approach can create 1.24 million new jobs within 8 months of
implementation.

The investment in Coupons-For-Jobs is only $13,785 per job ($17,094 million in

Coupons / 1.24 million jobs)

This is much more efficient than the $55-95,000 per job of the other already
announced Programs….. and….the jobs start one month after the implementation
month as opposed to 8 to 18 months for the other programs.

After the 8th implementation month, these jobs will be sustained, partly from the increased retail

April 1, 2010 Page 1

spending by those who were hired through this program and from similar retail spending from
other previously authorized jobs saving/creating programs that have a somewhat delayed
significant jobs increase.

BENEFITS SUMMARY OF COUPONS-FOR-JOBS INITIATIVE

The demand for increased employment in retail, wholesale and domestic manufacturing
industries comes as a result of increased demand for the products and services provided
by these sectors of the economy.

The Results of the Coupons-For-Jobs Program would be as follows:

1,241,490 Projected Equivalent * Jobs to be added through the 8th month after
implementation. *(Initially, some workers will have their hours increased before others
are hired.)

Unemployment in the combination of Retail, Wholesale and Manufacturing should be

reduced from a projected 10.7% in the Implementation Month (assumed to be March,
2010) in only 8 months to 6.95% by November, 2010 (excluding any return to the
workforce by “discouraged workers”).

Requires Issuing $17.1 Billion of Targeted Coupons-For-Jobs This is much less than the
presently unused TARP funds and other similarly planned but not yet issued funds to improve
GDP, employment, etc.

The newly hired people will generate $1,261,853,549 of retail spending by the 8th month
after Implementation. This also results in additional employment at all three sectors of the
economy.

Coupons-For-Jobs ought to be implemented without any increase in the national debt

beyond the level already associated with other government programs.

Individual consumers will be encouraged to use these coupons as their way to help increase
domestic employment. The coupons may encourage them to select products that are
domestically produced even though current government and/or political considerations probably
will not allow a “Buy American-Made Products” promotion.

TOTAL PURCHASING $ GENERATED BY THE COUPONS-FOR-JOBS

INITIATIVE

April 1, 2010 Page 2

Retailers receiving $17,094 millions in Coupons will subsequently experience $1,096 million in
additional retail sales from all the new hires added through the 8th month after Implementation.

To replenish these goods they will purchase $12,507 million from wholesalers.

The wholesalers, in turn, will purchase $10,195 million from Manufacturers.

Therefore, the total value of goods purchased through the 8th month after
implementation will be $40,893 million. This is an increase of $23,799 million in
goods purchased beyond the value of the Coupons ($40,893 million - $17,094
million).

This is another benefit to the economy from the Coupons-For-Jobs Initiative.

See the Chart below for how these benefits take place month-by-month

Beyond the 8th month after Implementation, to reduce unemployment in these

sectors of the economy to a 5% level (excluding any return to the workforce by
“discouraged workers”), either the Coupons-For-Jobs program can be expanded
$12,507
throughout more counties in the states or other previously started government
WHSL
programs will start to have a more significant impact on increasing employment.
$1,096 Add RTL
$17,094
COUPONS
TABLE OF CONTENTS

Overview Page 1

Benefits Summary of Coupons-For-Jobs Program Page 2

Total Purchasing $ Generated by the Coupons-For-Jobs Initiative Page 4

Targeting the Reductions in % Unemployment Page 7

Determining the $ of Coupons to Issue Monthly Page 8

The Coupons, Themselves Page 9

Implementing Coupons-For-Jobs Program at the Retail Level Page 11

The Impact at the Wholesale Level Page 13

The Impact of the Program on Domestic Manufacturers Page 14

April 1, 2010 Page 3

Assumptions, Supporting Calculations, and
Background of John F. Gahran Page 16

Appendix 1 Tentative List of Kinds of Eligible Products Page 18

Appendix 2 Tentative List of Kinds of Retail Stores that could be Page 19

included in the Program

Appendix 3 List of States and their tentative share of Coupons

based on their relative total amount of unemployed
people Page 20

TARGETING THE REDUCTIONS IN % UNEMPLOYMENT FOR THE

COUPONS-FOR-JOBS INITIATIVE

2007 was the most recent year of relatively acceptable levels of % unemployment of total
workforce (excluding “discouraged workers”) as shown below

Table 1 % Total Workforce Unemployment (excluding “discouraged workers”)

Yr Low High Avg.

2005 4.9 5.4 5.1
2006 4.4 4.8 4.6
2007 4.4 5.0 4.6
2008 5.0 7.4 5.8
2009 7.7 10.1 9.3

5% is a goal selected as the eventual target level of overall unemployment (excluding

“discouraged workers”) to be reached by all of the “Jobs Programs collectively after at least two
years.

For 2007 the % unemployment (excluding “discouraged workers”) in the retail, wholesale, and
manufacturing sectors were 5.1%, 3.3%, and 4.3% respectively as reported by the Bureau of
Labor Statistics

April 1, 2010 Page 4

The Coupons-For-Jobs Initiative is intended as a transition program until the jobs
expected from the already announced and/or implemented other government
programs begin to have a more significant effect (8 months to 2 years from now).

The collective target of the Coupons-For-Jobs Initiative for the combination of retail,
wholesale, and manufacturing sectors in 8 months is 6.95% unemployed out of a total
combined workforce of 35,044,363 (employed plus unemployed without considering
“discouraged workers”).

April 1, 2010 Page 5

DETERMINING THE $ OF COUPONS TO ISSUE MONTHLY

The Coupons-For-Jobs are issued only at the retail level of the economy.

The derived demands at the wholesale and domestic manufacturing levels result from
the replenishment of retail inventory consumed as a result of consumer transactions

The $ value of Coupons required to add 1 retail job per month is assumed to be
equal to the average monthly retail sales per employee in 2007, namely $21,453 as
shown below
Table 2 – Retail Sales per Employee per Month
BASE YEAR
2006 2007 2008
Average Retail Sales per Month $322,461,333,333 $332,901,916,667 $329,996,416,667
Total Retail Employment 15,355,783 15,518,067 15,356,300
Total Retail Sales
/Employee/Year $251,992 $257,430 $257,872
Total Retail Sales per
Employee per Month $20,999 $21,453 $21,489
% Retail Unemployment
(excluding discouraged
workers) 5.40% 5.10% 6.20%

Tentative target of new retail jobs that will be added probably not sooner than 1 month after the
coupons are issued are shown in Table 3 below.

(See: Cascading Flow Chart reference on Page 17.)

April 1, 2010 Page 6

Table 3 – Target % Retail Unemployment (excluding “discouraged workers”) with Coupons-For-
Jobs Program
Current
Projected Tentative Retail Tentative
% Unempl. Tentative Unempl. At Targeted
in Retail Targ. % Target % Retail Jobs to be Coupon Retail
w/o Retail Unempl. added Spending
Coupons- Unempl. Starting with monthly to needed to
Assumed For-Jobs with 15,968,047 meet increase Retail
Months of Program Coupons- Work Force target % Jobs @
Implemen- (as of For-Jobs Unemploy- $21,453/month /
tation 11/3/09) Program ment employee
Mar-10 Implem. 10.3% 9.90% 1,580,837 $2,226,656,000
Month
Apr-10 1st Month 10.3% 9.25% 1,447,044 103,792 $2,615,067,068
May-10 2nd Month 9.8% 8.25% 1,317,364 159,680 $3,486,756,090

Jun-10 3rd Month 9.7% 7.25% 1,157,683 159,680 $3,486,756,090

Jul-10 4th Month 10.0% 6.25% 988,003 159,680 $3,486,756,090

Aug-10 5th Month 10.0% 5.50% 878,243 119,760 $2,266,391,459

Sep-10 6th Month 10.0% 4.91% 784,031 94,211 $2,021,118,823

796,806 $17,085,104,841
Totals
Note: Table 3 does not include the impact of retail spending by new hires

By comparing the Coupons-For-Jobs redeemed vs. those issued for a particular month, the
Federal Government may have to upwardly adjust the amount of coupons issued in subsequent
months to assure that the cumulative targeted amount will be redeemed. (Some randomly
chosen recipients may not use the coupons for whatever reasons.)

THE COUPONS, THEMSELVES

The Coupons are to be used for merchandise* other than food, clothing and services**.

*House wares, cleaning products, hardware, rugs, furniture, electric, electronic

or mechanical items, appliances, toys, books, auto parts, cookware, bedding,
tools, and many other items. (For a more complete listing, see Appendix
1.)

**There is already an ongoing demand for food from existing employment

payroll, Social Security and retirement funds, unemployment compensation,
disability payments, Food Stamps, etc..

Almost all clothing is manufactured in other countries. Stimulating demand for

clothing would add the demand for foreign labor rather than increasing domestic
employment.

Retail Services do not create any appreciable demand for wholesalers or

manufacturers.
April 1, 2010 Page 7
$100 of printed Coupons would be mailed monthly by the federal government to randomly
*
selected consumers in the high unemployment counties in each state.

(A possible alternative to printed coupons may be some form of single use, time limited
debit cards, if this is at least as effective as printed coupons and has reduced costs for
reducing counterfeiting.)

*See Appendix 2. For the details regarding the selection of consumers.

Monthly, each state would be allocated a share of the Coupons-For-Jobs based on its total No.
of unemployed people as a % of the national total.

(See Appendix 3 for a list of these %)

They will be redeemed by consumers at bricks and mortar stores which meet “Small
Business” criteria (500 or fewer employees per firm)

There are approximately 736,000 firms which meet these criteria.

On average they spend 72.6% of their revenue to replenish their inventory.

It is also widely recognized that small businesses employ 51% of the workforce and
are the principal and fastest source of new job creation.

Larger businesses are more likely than smaller ones to directly import products
from foreign sources. This reduces the chances of stimulating domestic
wholesale and manufacturing jobs

Also internet retailers are excluded because of the inability to utilize hard copy coupons
in transactions

The coupons would have a $20 minimum denomination. Purchases of the designated
merchandise under this program must not be less than the face value of the Coupons tendered

A consumer’s Coupons-For-Jobs transactions will be “rung up” separately from non-coupon

transactions to minimize chances of purchasing non-authorized products with the Coupons.

It does not matter whether the addressee uses the coupons personally or not, as long as they
get used before they expire.

Retailers and the banking system already have experience processing coupons and food stamp
programs. Handling these coupons ought to be readily adopted and executed by them.

When the retailers deposit coupons in their bank, this will be the measurement
transaction of the Coupons-For-Jobs use of federal funds. Because these deposits will be
separate from others, it will be possible to determine the amount of Coupons-For-Jobs actually
used month-by-month.

April 1, 2010 Page 8

The monthly increase in jobs and/or employee hours paid for the participating retailers
(as reported on monthly/quarterly Social Security reports) can be compared vs. the $ of
coupons deposited to obtain an indication of the increase in “jobs” vs. the $ value of coupons
handled by the retailer. This provides prompt feedback on the effectiveness of the
Initiative.

IMPLEMENTING COUPONS-FOR-JOBS AT THE RETAIL LEVEL

• As stated previously, over a 6 month period consumers in high unemployment counties

in each state would receive $100 time-limited (1 month at a time) Federal Government
Coupons-For-Jobs to purchase designated goods from local small businesses (500
employees or less). This results in increased demand for the designated products. With
enough increased sales there will be reason for these redemption stores to hire more
employees to satisfy customers’ demand.
•
• The Federal Government will apportion a month’s issue of Coupons-For-Jobs among
the states in proportion to each state’s share of the total people unemployed in the nation.

• Monthly, within each designated county, there will be a new randomly selected group of
people chosen to receive the coupons. The group may be selected from those who are
identified by the federal government as employed, unemployed or collecting Social Security
payments, or equivalent funds and who have mailing addresses.

After the 30-day issuing life of the coupons they will no longer be valid

To maximize the impact of Coupons-For-Jobs, the implementation should start in

those counties in each state which have some combination of the highest %
unemployment and/or highest number of unemployed people.

See Appendix 4 for an example of how this might be done in one state

The benefits of this approach are as follows:

Each state will benefit from the program’s impact on their counties which have the
most significant unemployment problems.

The National Unemployment Rate would still be reduced but in a more

noticeable way on “Main Street.”

The number of participating retail firms will experience relatively more Coupon trade than
if there was a simultaneous national roll-out because redemptions of coupons are
concentrated in only some of the counties in a state.

Therefore, the resulting increase in local retail employment will be more noticeable.

The costs to distribute the coupons and otherwise monitor the program’s progress would
be less if only some counties are the focus of the program rather than all counties.

April 1, 2010 Page 9

 The resulting publicity of local successes will probably increase the willingness of other
Consumers and Retailers in other counties to participate in the program and/or
somewhat re-prioritize their spending to help meet the same objectives as in the starting
counties.

Designated Coupons-For-Jobs retailers will be authorized to display signs which announce that
they are eligible to receive coupons from consumers. A supporting local area public relations
program should make it relatively easy for consumers to find them.

At the Retail Level, stores will deposit these Coupons-For-Jobs separately in their
business banking account within 7 days of the end of the issue month. The retailer can
then withdraw the funds and use them for any business purpose ** (hopefully to replenish
inventory from their wholesale suppliers).

The wholesalers, in turn, will experience increased demand for their products and need to
replenish them from manufacturers (hopefully, domestic ones).

**It is not practical to constrain/monitor how the retailer uses the funds generated by the
Coupons-For-Jobs program. Since retailers are in business “to do business,”
they will need to replenish their inventory. If they become busy enough,
they will add employees to handle the increased business at the assumed
average rate of 1 equivalent employee for each $21,453 of sales.

There probably will be a modest lag (probably not more than 1/2 to 1 month) before employment
starts to increase after beginning retail inventory levels are reduced. This has been considered
in calculating the effects of Coupons-For-Jobs on employment.

After new retail employees are hired (in wholesale and or manufacturing, as well), they
begin to increase their own retail spending (not limited by the Coupons-For-Jobs product
constraints).

Current retail per capita expenditures are $1,104 per person per month. This will continue for
each new employee as long as the person is employed (discounted by 60% from month-to-
month for non-designated product consumption). This spending will also increase the demand
for replenishments from wholesalers and eventually for additional retail employees.

Retailers will utilize their other sources of funds and/or credit to support the increase in
business and employment in the months following an individual issue of Coupons-For-
Jobs. (Other government initiatives to increase lending to small businesses should help with
this.)

By the 8th month after implementation, as a result of both the initial issuing of coupons and
the subsequent retail spending by newly hired retail, wholesale, and manufacturing employees
the impact on the Retail Sector will be

806,721 jobs added in 8 months through 5 cascading levels of hiring (after

cumulative discounting of likely achievement of 95%, 80%, 80%,
65%, and 65%)

April 1, 2010 Page 10

 Also, % retail unemployment (excluding “discouraged workers”) will be
reduced to 4.8% (down from 9.9%) as shown in the following Table.

Table 4 - Retail Jobs Added from Coupons-For-Jobs Program

From Initial From Retail Total Jobs Resulting %

Coupon Issue Spending by new Added Unemployment
hires (Rtl-Wlsl- (excluding
Mfg) “discouraged
workers)
Impl Mth 9.9%
1st Mth. 98,603 98,603 9.3%
2nd Mthl 151,696 4,059 155,756 8.3%
3rd Mth 151,696 7,399 159,095 7.3%
4th Mth 151,696 9,399 161,096 6.3%
5th Mth 113,772 10,211 123,983 5.5%
6th Mth 89,501 8,690 98,190 4.9%
7th Mth 2,749 7,248 4.9%
8th Mth 2,749 4.8%
Total 756,865 49,756 806,721

THE IMPACT AT THE WHOLESALE LEVEL

Pre-recession retailers’ monthly $ purchases from retailers = 72.6% of Retailers Sales $.

When this is divided by the average number of Wholesale employees, the result is $57,346 of
wholesale sales/employee/month for the Base Year of 2007 as shown in the following table.

Therefore, we can assume that $57,346 of wholesale sales is needed to support one additional
wholesale employee. See the calculations in Table 5. which follows.
.

Table 5 – Monthly Wholesale Sales $ per Employee

BASE YEAR
2006 2007 2008
Retailers' Purchases by Goods from
Wholesalers $2,800,523,000,000 $2,901,078,000,000 $239,247,402,083
Retail Purchases from Suppliers as a
% of Retail Sales 72.4% 72.6% 72.5%
Average Wholesale Sales per Month $298,380,000,000 $345,701,333,333 $373,355,583,333
Total Wholesale Employment 5,904,500 6,028,300 5,963,700

April 1, 2010 Page 11

 Total Whsl Sales/Employee / Month $50,534 $57,346 $62,605
Wholesale Unemployment Rate
(excluding “discouraged workers”) 3.20% 3.30% 4.50%

New wholesale jobs will be added probably not sooner than one month after whole sales $ have
been generated as shown in the following table. There will also be jobs added from the
additional retail spending by newly hired employees month-by-month.

The results will be 184,914 more jobs (after cumulative % of likely achievement by
85%, 65%, 65%, 65%, and 60% after 5 cascading levels of hiring). Also achieving
5.6% Wholesale Unemployment (down from 8.8%) by the 8th month after
Implementation as shown in the following table.

Table 6 - Target % Wholesale Unemployment (excluding “discouraged workers”) as a result of

Retail Coupons-For-Jobs Program

Maximum Total Resulting No. Jobs derived Total Resulting %

Monthly of Jobs from additional Wholesale Whlsl
Wholesale Sales Added @ retail spending Jobs added Unemp. after
$ (72.6% of prior $57,346 / by recently hired both initially Coupons-
month’s Retail month / job retail, wholesale, and after retail For-Jobs
Sales) from initial and spending Program
Increase in manufacturing (excl.“dis-
Retail Jobs employees couraged
workers”)

Impl. Mth
1st Mth $1,616,552,496 8.8%
2nd Mth $2,487,003,839 23,961 23,961 8.7%
3rd Mth $2,499,487,003 36,863 36,863 8.3%
4th Mth $2,506,208,706 36,863 141 37,005 7.7%
5th Mth $1,884,457,746 36,863 218 37,081 6.5%
6th Mth $1,486,784,397 27,647 220 27,867 6.0%
7th Mth $14,789,863 21,749 222 21,971 5.6%
8th Mth $11,720,210 167 167 5.6%
Total $12,507,004,259 183,946 968 184,914

THE IMPACT AT DOMESTIC MANUFACTURING LEVEL

Pre-recession wholesalers’ monthly $ purchases from manufacturers = 81.6% of Wholesalers
Sales $. When this is divided by the Average no. of manufacturing employees, the result is
$30,578 of manufacturing sales/employee/month for the Base Year of 2007 as shown in the
following table.
Table 7 Monthly Manufacturing Sales per Employee
BASE YEAR
2006 2007 2008
Total Mfg Sales $5,021,555,000,000 $5,094,474,000,000 $5,120,921,000,000
Total Mfg Employment 14,155,000 13,884,000 13,423,000
April 1, 2010 Page 12
 Total Mfg $ /Employee $354,755 $366,931 $381,503
Total Mfg $ /Employee /Month $29,563 $30,578 $31,792
MFG Unemployment Rate (excl.
“discouraged workers) 4.20% 4.3% 5.80%
New manufacturing jobs will be added probably not sooner than one month after whole sales $
have been generated as shown in the following table. There will also be jobs added from the
additional retail spending of newly hired manufacturing employees month-by-month.

The results will be 173,928 more manufacturing jobs (after cumulative % of likely
achievement by, 75%, 65%, and 50% after 4 cascading levels of hiring). Also
achieve 11.6% Manufacturing Unemployment by the 8th month after
Implementation as shown in the following table.

Table 8 - Target % Manufacturing Unemployment as a result of Retail Coupons-For-Jobs Program

Maximum Total Resulting No. Jobs from Total Resulting %

Manufacturing of Jobs Added additional retail Manufacturing Manufacturi
Sales $ per month @ $30,458/ spending by Jobs added both ng Unemp.
(81.6% of prior month/ job recently hired initially and after (excluding
month’s Retail from initial retail, retail spending “discourage
Sales) Increase in wholesale, and d workers”)
Retail Jobs manufacturing after
employees Coupons-
For-Jobs
Program
Jan-10
Feb-10 12.9%
Mar-10 12.9%
Apr-10 $1,032,805,048 12.9%
May-10 $1,549,207,572 8,444 8,444 12.8%
Jun-10 $2,065,610,096 32,932 29 32,960 12.6%
Jul-10 $2,065,610,096 43,909 103 44,012 12.3%
Aug-10 $2,065,610,096 43,909 242 44,151 11.9%
Sep-10 $1,342,646,562 43,909 452 44,361 11.6%
Total $10,121,489,469 173,102 825 173,928

The targeted Coupons-For-Jobs Initiative requires issuing $17.1 billion of

Coupons at the retail level over a period of 6 months to fund the program. This is
much less than the presently unused TARP funds and other similarly authorized
but not yet issued funds to improve GDP, etc.

The newly hired people will generate $1,261,854,000 of retail spending by the
8th Month after Implementation. This also results in additional employment in all
three private sectors of the economy.

Beyond September, 2010, to reduce unemployment in these sectors of the

economy to a 5% (without considering “discouraged workers”), either the
Coupons-For-Jobs program can be expanded throughout more counties in the
states or other previously started government programs will start to have a more
significant impact on increasing employment.
April 1, 2010 Page 13
ASSUMPTIONS, SUPPORTING CALCULATIONS, AND BACKGROUND
OF JOHN F. GAHRAN

ASSUMPTIONS:

As jobs are added to the workforce it is not possible to predict the extent to which
previously “discouraged workers” (those who have “dropped out of the workforce”) will
re-enter the “unemployed” portion of the workforce and, as a result, increase the
nominal % unemployed. Therefore, in this proposal, it is assumed that no “discouraged
workers” return to the workforce when calculating the change in % unemployment..

The large majority of “Small Business” Retailers included in this program will not try to
“game” the system.

The federal government will determine which agency will further document
implementation details and issue the coupons and monitor and publish the results
monthly.

The minimum value of $100 of Coupons in $20 per Coupon is sufficiently large that it
will enable the purchasing of qualifying items that probably would not be made by
consumers without this program.

A method of randomly selecting recipients of the Coupons can be implemented which

will be “fair enough” to consumers while being “practical enough” to meet the objectives
of the program, which is increased employment rather than increased disposable
income itself.

Using the 2007 average $ Sales/employee values to estimate the amount of Coupons-
For-Jobs to issue for a targeted amount of employment is correct enough. I am not
aware of any Bureau of Labor Statistics data to suggest some other ratio.

If effectively introduced by the President and supported by a media campaign

(hopefully, a small % of the cost) and word-of-mouth promotion, the vast majority of
citizens will give their support to the Program, even if initially they may not receive the
Coupons (Scrip) themselves.

Retailers of goods are in business “to do business.” They will be more motivated to use
the proceeds from their increased sales to replenish inventories and add people to
service customers than to use them for other purposes.
April 1, 2010 Page 14
There may be a way to implement this program without obtaining congressional
approval. If not, the timeliness and “Main Street” benefits of the Program are so
obvious that there will be no “road blocking” legislative/lobbying/ear-marking that
“waters down” or delays the start of the program. Instead, it can be a bi-partisan effort to
win back more of the confidence of citizens in their government.

SUPPORTING CALCULATIONS :
A cascading flow chart displays the month-by-month sequence of transactions
involving:

Issuing Target $ of Coupons-For-Jobs

Resulting increases in retail employment one month later

$ of wholesale purchasing by retailers to replenish their inventories, one month

after retail transactions have commenced

Resulting increases in wholesale employment one month later

$ of manufacturing purchased by wholesalers to replenish their inventories

Resulting increases in manufacturing employment one month later

The similar effects on the above listed items by the generation of additional retail
spending by newly hired employees.

This flow chart can be viewed at

http://spreadsheets.google.com/ccc?
key=0AmeXljXaE3GEdDR6cWJEd0N3bnp4LxpqTmh5rWkE&hl=en#gid=0

Please copy and paste this address to your web browser, if need be.

If the spreadsheet does not immediately open, click on “docslisthome” and select
“Cascading Flow Chart 4-1-10.” Then click “Download” followed by “Open” on
the following dialog screen. Sorry about this, but I don’t have a website to store
the spreadsheet.

BACKGROUND OF JOHN F. GAHRAN

April 1, 2010 Page 15

Recently retired from a management consulting firm which has extensive
accomplishments in turning around troubled, mostly privately owned, domestic
businesses since 1976.

The concepts incorporated in this Proposal are similar to the “bottoms-up” strategies
implemented on the factory floor, in the warehouse and in the marketplace utilized to
achieve these turnarounds.

Prior to heading this firm, he was a general manager of divisions of publically owned
companies.

He has both an MBA from Temple University and a BSME from MIT.

CONTRIBUTORS:

Herman Kessee, Carlisle, PA

Appendix 1 Tentative List of Kinds of Eligible Products

DURABLE GOODS NONDURABLE GOODS

SIC CODE - Product Name SIC CODE - Product Name

5111 Paper Products & School

5031 Lumber, plywood, and millwork supplies
5032 Brick, stone, & related materials 5112 Stationery and office supplies
5122 Drugs, proprietaries, and
5033 Roofing, siding, & insulation sundries
5013 Motor vehicle supplies and new parts 5131 Piece goods & notions
5162 Plastics materials & basic
5014 Tires and tubes shapes
5172 Petroleum products, (Other than
5021 Furniture fuel)
5023 Home furnishings 5181 Beer and ale
Kitchen utensils , etc 5182 Wine and distilled beverages
April 1, 2010 Page 16
 5192 Books, periodicals, &
5043 Photographic equipment and supplies newspapers
5044 Office equipment 5193 Flowers & containers
5045 Computers, peripherals & software 5194 Tobacco and tobacco products
5047 Medical and hospital equipment 5198 Paints, varnishes, and supplies
5048 Ophthalmic goods
5063 Electrical apparatus and equipment
5064 Electrical appliances, TV & radios
5065 Electronic parts and equipment
5072 Hardware
5074 Plumbing & hydronic heating supplies
5075 Warm air heating & air-conditioning
5078 Refrigeration equipment and supplies
5088 Transportation equipment & supplies
5091 Sporting & recreational goods
5092 Toys and hobby goods and supplies
5094 Jewelry & precious stones

Appendix 2 Tentative List of Kinds of

Retail Stores that could be included in
the Program

Kinds of Retail Stores

SIC CODE - Type of Retail Store

5231 Paint, Glass, and Wallpaper Stores
5251 Hardware Stores
5311 Department Stores
5331 Variety Stores
5399 Miscellaneous General Merchandise Stores
5541 Gasoline Service Stations
5712 Furniture Stores
5713 Floor Covering Stores
5714 Drapery, Curtain, and Upholstery Stores
5719 Miscellaneous home furnishings Stores

April 1, 2010 Page 17

 5722 Household Appliance Stores
5731 Radio, Television, and Consumer Electronics Stores
5734 Computer and Computer Software Stores
5735 Record and Prerecorded Tape Stores
5736 Musical Instrument Stores
5912 Drug Stores and Proprietary Stores
5921 Liquor Stores
5941 Sporting Goods Stores and Bicycle Shops
5942 Book Stores
5943 Stationery Stores
5944 Jewelry Stores
5945 Hobby, Toy, and Game Shops
5948 Luggage and Leather Goods Stores
5949 Sewing, Needlework, and Piece Goods Stores
5993 Tobacco Stores and Stands
5999 Miscellaneous Retail Stores, Not Elsewhere Classified

Appendix 3 - List of States and their tentative share of Coupons

based on their relative total amount of unemployed people

Unemployment by States (excluding

“discouraged workers”) (000)
Share of
Cou-
pons by
Based on Nov, 2009 Data State
2009p 2009p 2009p 2009p
% of
Total
Unem-
Cumulative ploy-
State and Area WrkForce Unempl. Unempl. ment
California.............................. 18314.7 2230.4 2,230,400 14.489%
New York................................ 16635.5 1430.7 1,430,700 9.294%
Florida................................. 9195.2 1053.1 1,053,100 6.841%

April 1, 2010 Page 18

Texas................................... 12103.2 953.9 953,900 6.197%
Illinois................................ 6644 695.2 695,200 4.516%
Michigan................................ 4847.5 683.4 683,400 4.440%
New Jersey.............................. 7092.9 659.1 659,100 4.282%
Ohio.................................... 5915 603.1 603,100 3.918%
Pennsylvania............................ 6332.5 520.2 520,200 3.379%
North Carolina.......................... 4531.6 483.4 483,400 3.140%
Georgia................................. 4723.5 468.0 468,000 3.040%
Washington.............................. 3519 321.3 321,300 2.087%
Tennessee............................... 2991.5 301.1 301,100 1.956%
Indiana................................. 3104.8 288.7 288,700 1.875%
Massachusetts........................... 3451.5 287.6 287,600 1.868%
Arizona................................. 3149.6 274.2 274,200 1.781%
Missouri................................ 2983 273.7 273,700 1.778%
Virginia................................ 4124.7 263.1 263,100 1.709%
South Carolina.......................... 2158.5 262.1 262,100 1.703%
Wisconsin............................... 3036.1 238.3 238,300 1.548%
Maryland................................ 2944.1 214.9 214,900 1.396%
Alabama................................. 2073.4 212.7 212,700 1.382%
Oregon.................................. 1958.8 211.4 211,400 1.373%
Kentucky................................ 2066.3 209.0 209,000 1.358%
Minnesota............................... 2963.9 206.3 206,300 1.340%
Puerto Rico............................. 1321.6 204.9 204,900 1.331%
Colorado................................ 2664.9 179.1 179,100 1.163%
Nevada.................................. 1371.8 161.4 161,400 1.048%
Connecticut............................. 1892.9 150.5 150,500 0.978%

% of
Total
Unem-
Cumulative ploy-
State and Area WrkForce Unempl. Unempl. ment
Louisiana............................... 2059.1 130.6 130,600 0.848%
Oklahoma................................ 1788.7 122.5 122,500 0.796%
Mississippi............................. 1279.8 114.6 114,600 0.744%
Iowa.................................... 1685 108.2 108,200 0.703%
Arkansas................................ 1371.9 94.5 94,500 0.614%
Kansas.................................. 1522.1 93.9 93,900 0.610%
Utah.................................... 1366.2 82.9 82,900 0.539%
New Mexico.............................. 965.9 72.7 72,700 0.472%
Idaho................................... 753.9 67.6 67,600 0.439%
West Virginia........................... 789.9 62.8 62,800 0.408%
Maine................................... 698.5 55.1 55,100 0.358%
New Hampshire........................... 737.4 47.9 47,900 0.311%
Hawaii.................................. 644.5 45.3 45,300 0.294%
Nebraska................................ 981.2 41.5 41,500 0.270%
District of Columbia.................... 329.5 39.0 39,000 0.253%

April 1, 2010 Page 19

Delaware................................ 426.3 34.2 34,200 0.222%
Montana................................. 494.7 31.7 31,700 0.206%
Alaska.................................. 356.2 30.4 30,400 0.197%
Vermont................................. 358.9 22.3 22,300 0.145%
South Dakota............................ 444.6 21.3 21,300 0.138%
Wyoming................................. 291.2 20.5 20,500 0.133%
North Dakota............................ 357.8 13.2 13,200 0.086%

Totals 163,815.3 15,393.5 100.000%

April 1, 2010 Page 20