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Page 1: 2010 Fastest 100 09-20-10 - CP Technologies · aged subprime loans had given the lending business a black eye as housing prices dropped and foreclosure rates rose, said Trevor Gates,

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Page 2: 2010 Fastest 100 09-20-10 - CP Technologies · aged subprime loans had given the lending business a black eye as housing prices dropped and foreclosure rates rose, said Trevor Gates,

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Page 3: 2010 Fastest 100 09-20-10 - CP Technologies · aged subprime loans had given the lending business a black eye as housing prices dropped and foreclosure rates rose, said Trevor Gates,

SEPTEMBER 20, 2010 1

SUPPLEMENT TO THE SAN DIEGO BUSINESS JOURNAL I www.sdbj.com

CONTENTS

INDEX

LETTER FROM THE PUBLISHER

Armon MillsPresident & Publisher

San Diego Business Journal

Integrity First Ranks First 4

Ty Kalklosch fulfilled a vision for implementing a simplified method of paying the rent online when co-founding PayLease.

12Platform for Rent Payments

Forward Slope President Carlos Persichetti travels to distant locales as a consultant on defense industry contracts.

Managing Government Contracts

22

Small Businesses Make Big Strides 2

Integrity First Financial Group 4

Motive Interactive Inc. 6

Service-now.com 8

Pixeled Business Systems 10

PayLease Inc. 12

Sullivan Solar Power 14

Maxon Consulting Inc. 16

Ingenium 18

KBM Facility Solutions 20

Forward Slope Inc. 22

We take this opportunity to present our seventh annual ranking of the fastest-growing private companies in San Diego County.

We’re proud to note that no other publication offers such valuable data, which also makes for good reading.

It’s part of our mission to provide a sense of community to local businesses and industries.

Compiling the list and staging the awards reception takes many months and requires the combined contributions of several different departments here at the San Diego Business Journal.

We begin our research in the spring, accepting questionnaires from businesses that want to land a spot on this highly coveted ranking.

To be considered, a business must be based locally. Moreover, each candidate must be privately held — and independent — and can’t be a division or subsidiary of another company, public or private.

Each qualifying company must have generated revenues of at least $200,000 in 2007, which is the starting point for our calculations.

We then verify the financial information supplied by each com-pany, reviewing the financial details of each company’s business op-erations in 2007, 2008 and 2009. Our research team spends months crunching the returned data in the questionnaires, which is used to rank the businesses that make the list.

The 100 companies spotlighted here reflect the high energy and intense focus of the local business community. It’s an honor to be so recognized.

We congratulate those entrepreneurs that make the list, and thank all businessmen and women who chose to participate this year. If you think your business might qualify for the Fastest-Growing Private Companies list next year, please let us know. We’ll send you a ques-tionnaire that could land your company on the 2011 list.

The San Diego Business Journal would like to thank our present-ing sponsor, Accountemps, A Robert Half Company, and co-sponsors Barney & Barney LLC, California Bank & Trust, COX Business, ESET, Kaiser Permanente, McGladrey and The Westgate Hotel for their sup-port of this supplement and our awards reception.

We hope you’ll enjoy learning about San Diego’s 100 fastest-grow-ing private companies.

— Armon Mills and Reo Carr

Integrity First Financial Group founders, from left, Trevor Gates, Jake Pescatello, Anthony Balsamo and Alex Barnett, strive to bring transparency to mortgage lending.

Reo CarrEditor-in-Chief

San Diego Business Journal

We Are Proud That Our Fastest-Growing

Private Companies List Has Become

So Coveted an Honor

Page 4: 2010 Fastest 100 09-20-10 - CP Technologies · aged subprime loans had given the lending business a black eye as housing prices dropped and foreclosure rates rose, said Trevor Gates,

www.sdbj.com I SUPPLEMENT TO THE SAN DIEGO BUSINESS JOURNAL

SEPTEMBER 20, 20102

BY MARTY GRAHAM

The 2010 Fastest-Growing Private Companies list tells us some important information about growth in the worst economic climate in 75 years.

First of all, growth is happening in the small-busi-ness sector — truly small. Only one company among the top 10 on the list has more than 100 local full-time employees, and eight have fewer than 50. Last year’s top 10 Fastest-Growing Private Companies employed more than 5,000 workers locally, while this year’s barely clears 500. The top 10 fastest-growing companies in 2009 generated total revenues of more than a billion dollars, while this year’s top 10 barely clear $100 million.

And most are more than five years old. Just two were founded after 2005, when fast-growing upstarts were once the norm. Many of these businesses are owned and run by people with a decade or more of experience in their field, such as Brendan Smith of Motive Interactive, or working for now-competitors, such as the founders of Ingenium.

Second, growth is happening without the benefit of outside investors. Whether they could use venture capital or angel investors or the owner could plan to take the company public, the money isn’t there and the market isn’t willing. The businesses that are growing are doing it in spite of the well-documented difficulties in obtaining credit and investment.

At least seven of the companies went without cash infusions from investors this year, and most compa-nies report that their goal is to retain control of the business. Whether by necessity or design, it seems a worthy goal given the flat growth of companies strug-gling to please both financial overlords and custom-ers, who are demanding more for less.

All but one of the companies on the list deliver spe-cialized services to other businesses — Sullivan Solar Power is the lone exception. Five of the top 10 compa-nies on the list provide proprietary or custom software, whether to manage accounts and contracts as Pay-Lease and Forward Slope do, manage their clients’ own information technology a la Service-now.com, or to help companies develop and maximize Web markets.

One might reasonably assume that these businesses are picking up the slack as their clients begin to experi-ence their own tentative recovery without the staff they

once had attending to these functions. The recession has also put emphasis on streamlined operations and getting every spare cent into the coffers, which may ex-plain the demand for management software.

The biotechnology, technology and staffing indus-tries, which dominated last year’s list, are entirely missing this year as well — and we hope their growth has been positive and stable for the jobs their pres-ence represented last year.

Exclusivity and specialization mark these suc-cessful businesses. Motive Interactive takes pride in screening its potential clients, Ingenium reports that the company has turned down contracts over concerns about the potential clients’ commitment to regulations and even our residential lender, Integrity First Financial Group, talks about its commitment to its customers.

Three of the top 10 businesses are involved in en-vironmental matters — Maxon Consulting, Sullivan Solar Power and Ingenium — demonstrating that our region’s commitment to a cleaner and more sustainable California can survive a terrible economic punch.

The Web is past discussion; it is part and parcel of the business universe and has been integrated into many of these companies’ functions. Two companies (Pixeled Business Systems and Motive Interactive) specialize in Web presence and Web commerce.

Others expect their clients to use the Web as a matter of course. Sullivan Solar creates a Web page with each solar installation that lets people monitor their power generation in real time, for example, while PayLease is built on the notion that people will pay their rent online. Integrity First Financial Group’s loan application and qualification process is entirely online.

Companies that help other businesses negoti-ate highly regulated problems, whether it’s defense contracting or environmental regulations, are doing well. Maxon Consulting continues to grow its envi-ronment and oil practice, while Ingenium does very well in the hazardous waste industry.

And cleaning up remains a profitable business, whether it’s dealing with toxics or dealing with office buildings and retail centers, as KBM Facility Solu-tions does.

Marty Graham is a freelance writer for the San Diego Business Journal.

Small Businesses Make Big Strides in Growing RevenuesNew List of Fastest-Growing Private Companies

Looks Much Different Than Last Year’s

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SEPTEMBER 20, 2010 3

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SEPTEMBER 20, 20104

1No. Integrity First

Financial GroupCEO: Jake Pescatello.Location: 5080 Shoreham Place, #203, San Diego.2009 revenue: $2.5 million.2007-2009 growth: 557.87 percent.No. of local full-time employees: 24.Web site: iffgdirect.com.

Financial Firm Strives for More Transparency in Mortgage Lending

Partners See Double-Plus Growth Every YearBY EMMET PIERCE

Sensing that the public shared their dislike of the mortgage professionals who had steered many homebuyers into loans

they could not afford during the recent housing boom, the founders of San Diego’s Integrity First Financial Group decided to build a business based on fi nancial transparency.

The group started its own company in July 2006, less than a year after housing prices in San Diego County had reached their peak. Highly lever-aged subprime loans had given the lending business a black eye as housing prices dropped and foreclosure rates rose, said Trevor Gates, chief fi nancial offi cer of the Integrity First Financial Group and one of its four founders.

“A lot of people caught on to that and mortgage brokering got a bad name,” Gates said. “We are the antith-esis of that. We want our transactions to be transparent. We want our clients to feel good about the industry again.”

Integrity First Financial Group of-fers a variety of lending programs and gives consumers real-time pric-ing online. The San Diego company’s strategy has worked well. The partners took their 2007 revenue of $373,862 and increased it into $2,459,542 in 2009, a growth rate of nearly 558 per-cent. That rapid growth gave them the No. 1 spot on the Business Journal’s 2010 list of Fastest-Growing Private Companies. The business recently moved into expanded offi ces on Green-wich Drive, near Governor Drive.

Integrity First’s goal is to create low-

cost mortgage solutions that put the client’s needs fi rst, Gates said.

“No bait and switch, no smoke and mirrors,” he said. “One hundred per-cent of our business is online market-ing. We think the consumer deserves a fair and honest mortgage company and that is what we deliver.”

The privately held company consists of 24 employees and four partners, Gates said. In addition to himself, the partners are Anthony Balsamo, chief operating of-

fi cer; Alex Barnett, secretary and sales director; and Jake Pescatello, chief ex-ecutive offi cer. The group learned that satisfi ed customers tell their friends about their experiences.

“We do get a lot of referral business,” Gates said. “We have seen double-plus growth every year. We are trying to re-store the public’s opinion about mort-gage lenders. We are just looking to continue to grow our business and do right by the people.”

Integrity First takes pride in the fact that it is a certifi ed upfront mortgage lender, Gates stressed.

“It is a certifi cation showing we pro-vide the customer online with all of our rates and fees exactly as the loan would be at closing,” he said. “They can see the rate they are going to get, see the fees we are going to charge before they put in any personal information.”

Emmet Pierce is a freelance writer for the San Diego Business Journal.

Melissa Jacobs

Integrity First Financial Group partners, from left, Trevor Gates, Jake Pescatello, Anthony Balsamo and Alex Barnett, take pride in practicing ethical mortgage lending with strategies such as disclosing rates and fees online exactly as the loan would be at closing.

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SEPTEMBER 20, 2010 5

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SEPTEMBER 20, 20106

2No. Motive

Interactive Inc.CEO: Brendan Smith.Location: 6020 Cornerstone Court W., San Diego.2009 revenue: $17.3 million.2007-2009 growth: 426.20 percent.No. of local full-time employees: 14.Web site: motiveinteractive.com.

For Motive Interactive, Being Selective Pays OffThe Company Provides Clients With an Innovative

Way of Managing Their Web AdvertisingBY MARTY GRAHAM

W hoever heard of an invi-tation-only advertising brokerage where you pay only when you’ve

succeeded in getting a response? Bren-dan Smith and Paul Johnson of Motive Interactive Inc. are running just that company, which ranks second on the San Diego Business Journal’s List of Fastest-Growing Private Companies.

Founded in Lake Tahoe in 2003, the Sorrento Valley company engages in affi liate marketing and performance advertising — Internet buzzwords for managing advertising in a way that gives advertisers proof that their mar-keting efforts are reaching their target audiences.

“There are more venues for advertis-ing than ever before and we know more about how consumers respond through Web metrics,” Smith said. “The adver-tiser pays on cost per action, cost per acquisition — what they pay us for is the result.”

Just getting the advertisement to the same page as a Google search re-sult or a Web mail address isn’t enough anymore. The potential customer has to engage, to provide information or request it. Which means either casting a very, very broad net or targeting the right people from the outset.

Smith, a New York native, has been involved in Web marketing since there was a Web. He was attracted to the pro-fession because it was somewhat por-table — which worked well with his pursuit of snow and mountains.

“I lived in Silverthorne, Colo., and I had one of those big black boxes stuck on my car to get Internet access,” he said. “I also lived around Lake Tahoe, in Manhattan and in Stockholm for a while.”

He settled in San Diego in 2007, and shifted focus from portability to build-ing a more exclusive and effective way to connect advertisers with the right publishers, and vice versa.

In 2009, the six-year-old company reported $17.3 million in revenues, up from $3.3 million in 2007. They num-ber JDate, Course Advisor and Perfect-Match among the Web sites that pub-lish their affi liate advertising.

But they’ve taken a contrarian ap-proach to growing the business.

“We don’t allow just anyone to come and be partners with Motive,” Smith said. “We don’t work with adult (ads), we don’t work with hate, we make sure the advertiser is a clean advertiser and that they follow through on their prom-ises. We buy the product and try it.”

Smith notes that a year ago, the top-performing ad on the Web was for acai berries, touted as a cure for everything from thin lips to cancer. As it turned out, many of the advertisements were tied to long-term scams, where buyers unwittingly subscribed to months of credit card payments with their “free” sample.

“It would be personally embarrass-ing to me to have been part of that,” Smith said.

Motive also created and owns its technology, a platform called Advent, rather than leasing the industry stan-dard technology as many competing companies do. That means they can of-fer better security, customization and software that not only measures the ads’ effectiveness accurately but that can evolve with the fast-changing on-line advertising arena.

“I built the technology around the Apple concept of the user being the most important part,” Smith said. “When I launched the company and technology, which is worth millions of dollars and took years to develop, I did it to be more than a sales engine.”

Smith said that the company some-times loses money on campaigns be-cause the advertisers’ deal is that they pay on results.

“I wouldn’t want to pitch Sony Inter-active and then not be accountable,” he said. “If something is going bad, our technology and attention to detail mean that we will know before it goes completely bad.”

Motive founders Smith and Johnson still own and control the company, but they did take on a private equity part-ner in 2007. They spurned a few offers for venture capital and turned away from expressions of interest.

“We grew slower because we didn’t have big VC backing,” Smith said. “We didn’t get in the volume game and we were able to be careful and selective with our publishers and advertisers.”

Marty Graham is a freelance writer for the San Diego Business Journal.

Bob Hoffman Video & Photography

Brendan Smith, above, helps advertisers reach their target audience through the marketing and performance advertising fi rm Motive Interactive, which he runs with partner Paul Johnson.

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SEPTEMBER 20, 20108

3No.

CEO: Fred Luddy.Location: 120 S. Sierra Ave., Solana Beach.2009 revenue: $27.8 million.2007-2009 growth: 379.31 percent.No. of local full-time employees: 100.Web site: service-now.com.

Service-now.com

Service-now.com Is Growing Fast With Its Pay-as-You-Go Model

Tech Firm Founder Calls It a David vs. Goliath StoryBY EMMET PIERCE

W ith a growth in revenue of nearly 380 percent from 2007 to 2009, Ser-vice-now.com ranks

third on the Business Journal’s list of Fastest-Growing Private Companies.

Founded in 2004 by Chief Execu-tive Offi cer Fred Luddy, 55, the Solana Beach-based company implements and supports on-demand information tech-nology service management solutions of-fered over the Internet. The applications are licensed on a subscription basis.

“Any company that has more than 50 IT (information technology) employees would fi nd us useful,” said Luddy, who spent 13 years working as the tech of-fi cer of Peregrine Systems Inc. before starting his own company.

“What we do is quite simple,” Luddy said. “We help automate the ordering and dispatching of work orders in an IT department. At the lowest level it is called a help desk. We are the software behind a help desk. When they call the help desk and the person asks ‘Would you like a ticket number?’ that ticket number is coming out of a system like ours.

“Let’s say they can’t resolve the problem for you immediately,” he con-tinued. “Our system writes the work order and dispatches it to someone appropriate. We fi nd someone who has time available and the proper skill set. All we do is provide a technology they use to help effi ciently and effec-tively route work. Fundamentally it is very simple but it can get very compre-

hensive. It also is something that has a great sense of urgency for getting it right. Some of our customers are the world’s largest fi nancial fi rms.”

Corporations today are highly depen-dent on technology. A malfunction can

quickly turn into an expensive prob-lem. Luddy’s chief competitors are the Hewlett Packard Co., BMC Software Inc., International Business Machines, known as IBM, and CA Technologies. Luddy said he has no problem taking

on the giants. The ongoing recession has attracted new customers who are looking for competitive ways to cut costs.

His company reported revenue of $5.8 million in 2007, increasing it to $27.8 million in 2009. Luddy said he is happy with the rapid growth, but noted that there are much larger competi-tors.

“It is very much a David vs. Goliath story,” he said. “We have been grow-ing at about 100 percent per year. We’ve been very fortunate. Even the economic downturn played to our fa-vor. We had huge fi nancial institutions that were swimming in cash and sub-sequently found themselves drowning in red ink.”

Part of the appeal of Service-now.com is its pay-as-you-go approach. In-stead of paying a large upfront fee for software they may never use, compa-nies pay only for what they use.

“The simplicity of the deployment model and the licensing model make us dramatically different from our competition,” Luddy said.

Although there are 200 employees today, Luddy began the business as a one-person operation.

“I was the only employee for the very fi rst year,” he recalled. “Then we hired four people in January of 2005. Around the end of 2005, we had about 13 em-ployees. From there we have ramped up to 200, where we are today.”

Emmet Pierce is a freelance writer for the San Diego Business Journal.

Photo courtesy of Service-now.com

CEO Fred Luddy has seen the IT service management fi rm Service-now.com evolve from a one-man operation to an established enterprise with 200 employees.

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SEPTEMBER 20, 201010

4No. Pixeled

Business SystemsCEO: David M. Morris.Location: 1733 S. Escondido Blvd., Escondido.2009 revenue: $1.9 million.2007-2009 growth: 300.43 percent.No. of local full-time employees: 12.Web site: pixeled.net.

Pixeled Supports E-Commerce From Every Angle

BY MARTY GRAHAM

Entrepreneur David M. Mor-ris sees integrity at the heart of Pixeled Business Systems’ growth this past year.

“Most of our success has to do with how we treat our customers, our round-the-clock and local — not outsourced — service,” Morris said. “We don’t mass market. Many people come by referral and it’s very common for new custom-ers to come in the fi rst time with a pro-gramming problem.”

Between 2007 and 2009, Pixeled’s revenues jumped from $500,000 to $1.9 million — and its staff grew from four to 12 as the company hired employees rather than outsource the work. The Escondido-based company, founded in 1997 and fourth on the San Diego Busi-ness Journal’s list of Fastest-Growing Private Companies, currently fi nds its revenues coming in from several areas: Web hosting and dedicated servers, de-sign services and developing software.

Its proprietary software, Proteus, has a growing list of fans — often small businesses that have outgrown their cobbled-together systems. The product slogan says it all: Software you don’t have to struggle with. Pixeled owns the license for Proteus and clients pay a modest installation fee along with regular monthly payments.

Morris wrote the code after he saw clients dealing with the complexities of having both e-commerce and brick-and-mortar businesses selling from the same inventory and trying to keep up with their own business.

“It really streamlines the process from four or fi ve softwares that don’t talk to each other, and faxes going back and forth to real-time updates and then be-

ing able to analyze the information,” said Jennifer Constantinidis, the director of marketing. “We have a local jeweler with seven stores and a Web site where anybody in any store can sell any one of the custom pieces and there’s real-time information immediately available to the rest of the sales staff.

“It’s a very robust program that in-cludes customer relations manage-ment, has human resources capabili-ties and does all kinds of accounting functions in addition to the inventory and sales tracking,” Constantinidis said.

Pixeled also designs and builds Web

sites, from the basic four-page setup to intricate e-commerce sites, including the one they launched for Auctions.com and the revamping of the Escon-dido Chamber of Commerce Web site to improve its look and feel, content and to position it so it turns up on the fi rst page of a Google search.

Morris reads and writes software in 10 different programming languages and began the business as a coding prodigy at Columbia University in New York when he was 20. He started designing Web sites with classically trained artist Eric Wirtz and found his programming came in handy to solve

problems.Morris has a reputation as a white

hat hacker — someone companies seek out to test their security before an invader enters. His fi rst hired hacks, called security intrusion testing in the fi eld, were at the Department of De-fense, and he claims a security clear-ance of level four among his honors.

“It took me 20 minutes to hack,” Morris said of the unspecifi ed Defense Department software. “I rebuilt the entire program for them, that one and several others, too.”

Proteus, the company’s star e-com-merce software, handles credit and payment transactions containing vul-nerable and desirable information. Because of his background, he brings a special interest in security to all his work for clients.

“Anytime you do programming, you still have to keep security issues in mind,” he said. “We track security throughout the whole program.”

Security is also central to the com-pany’s hosting and dedicated server and collocation business, whether it’s the extra cost of having SAS 70 back-up here in the U.S., instead of offshore, or the special attention paid to secu-rity in cloud services, which refers to Internet-based computing in which re-sources, software and information are provided to users on demand. Colloca-tion refers to renting physical space on a service-provider’s premises.

“People count on us to protect their irreplaceable data,” Constantinidis said. “They may not know how much we do to protect it, but they can trust that it is secure.”

Marty Graham is a freelance writer for the San Diego Business Journal.

Proteus Software Is the Company’s Star Player

Bob Hoffman Video & Photography

Pixeled Business Systems’ CEO David M. Morris wrote the code for the fi rm’s e-commerce software, Proteus, to streamline the complexities of managing online and brick-and-mortar businesses.

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SEPTEMBER 20, 2010 11

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SEPTEMBER 20, 201012

5No.

CEO: Yann Phung.Location: 5414 Oberlin Drive, #100, San Diego.2009 revenue: $2.5 million.2007-2009 growth: 285.61 percent.No. of local full-time employees: Nine.Web site: paylease.com.

PayLease Inc.

PayLease Offers One-Stop Shop for Making Rent Payments

Business Serves Property Managers Throughout the U.S. BY EMMET PIERCE

Yann Phung and Ty Kalklosch, co-founders of PayLease Inc., were on a lunch break from their jobs as district manag-

ers for a large fi rm when they came up with an idea for starting their own business.

They realized they could provide a highly marketable service if they cre-ated a way for the residents of rental housing to pay their monthly bills on-line.

“We used to go to lunch once a week at least,” recalled Kalklosch. “One day we started brainstorming and fi gured that the only bill you could not pay on-line was your rent. We knew we could build something to streamline the pay-ment platform.”

Their goal was to simplify the col-lection process, creating a “one-stop shop” for payment processing. They started out working together in a small offi ce on Mission Gorge Road in 2003. Today they run a growing company with 14 employees that serves property managers throughout the U.S. They rank No. 5 on the Business Journal’s list of Fastest-Growing Private Compa-nies, 2007 to 2009. The business had revenue of $647,924 in 2007, moving to $2,498,487 in 2009, a growth of nearly 286 percent.

“The payment platform we have built is specifi cally for property managers,” Kalklosch said. “It gives residents the ability to pay with check or credit card directly through the property manag-

er’s Web site 24 hours a day, seven days a week.”

After a payment is made, the prop-erty manager is notifi ed via e-mail. PayLease works with homeowner as-sociations and property management companies of all sizes.

“We have some clients with 100 units and some have 300,000 or 400,000 homes,” he said. “We have clients in every state. A majority of our business is residential. We have been very for-

tunate. It is a wide open market. It is very green. We are bringing on 50 to 100 property managers each month.”

Kalklosch said that recognition of the success that the company has had is spreading throughout the industry. Recently, Inc. magazine placed Pay-Lease on its annual Inc. 500, a ranking of the nation’s fastest-growing private companies, he noted.

Phung and Kalklosch both are 33. Phung grew up in Virginia while Kalk-

losch was raised in Orange County. The partners plan to continue developing their San Diego-based business.

Although many residential property managers still require their renters to write monthly checks, eventually ev-eryone will be using online payment methods, Kalklosch predicted. “The checkbook is going to go away at some point.”

Emmet Pierce is a freelance writer for the San Diego Business Journal.

Bob Hoffman Video & Photography

PayLease President Ty Kalklosch, above, developed a system with co-founder, Yann Phung, that allows rental housing residents to pay their rent through their property manager’s Web site.

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SEPTEMBER 20, 201014

6 President: Daniel Sullivan.Location: 7964 Arjons Drive, Suite A, San Diego.2009 revenue: $8.3 million.2007-2009 growth: 275.14 percent.No. of local full-time employees: 22.Web site: sullivansolarpower.com.

No. Sullivan Solar Power

Sullivan Solar Power Basks in PopularityFirm Is Stepping Up Its Energy Education, Outreach Efforts

BY MARTY GRAHAM

The sun shone on Sullivan Solar Power this year, rewarding 32-year-old founder Daniel Sullivan with his best year yet, despite

the near and pending demise of a pro-gram that would have let thousands more San Diegans put panels on the roof and tie the payment to their tax bills.

“There’s a tremendous interest in solar generation and we’re seeing it on the residential side and the commer-cial side,” said Daniel Sullivan, presi-dent of the Mira Mesa company, which ranks sixth on the San Diego Business Journal’s list of Fastest-Growing Pri-vate Companies. “Right now our busi-ness is 60 percent residential and 40 percent commercial, but I expect that to be 50-50 in 2011.”

The company has just inked con-tracts for two commercial installa-tions atop parking structures at Los Angeles Harbor College in Wilmington and Long Beach City College, one of which includes Sullivan’s favorite so-lar-electric innovation — recharging stations for electric cars.

“For people where solar installation doesn’t pencil out to be benefi cial with their current (low) power usage, add-ing an electric car can make it cost-ef-fective,” he said. “Then they save on gasoline and, with the car recharging off the sun, they become carbon neu-tral.”

The company, founded in 2004 and pushed by the impetus of state and federal incentives for clean-energy generation, reported $8.3 million in revenues in 2009, nearly four times its 2007 revenues of $2.2 million.

Sullivan Solar is the largest locally based solar power installation compa-ny — founded when Sullivan, then an electrical contractor, approached his employer with a plan to start a solar division and was turned away.

Between a growing interest in sus-tainable energy practices and some pretty hefty government rebates and incentives, as well as improvements in the technology and manufactur-ing that have brought down consumer costs, the solar industry has had plenty

going for it.With that growth, Sullivan Solar has

stepped up its investment in educa-tion and community outreach, holding seminars and working with customers to show them how owning their own generating system can help them lock down their power costs, add value to their homes and own bragging rights to eco-soundness for years to come.

“Some people buy solar the same way they bought the Prius, because it’s smart and it shows your commitment

to doing the right thing,” Sullivan said. “It helps that it saves money and pays for itself.”

The company is also committed to its 22 local employees, up from 10 in 2007. All the installers are state-li-censed electricians, despite a loophole that could let them use people who lack the credentials. And they’re paid fair wages and receive full benefi ts.

“We don’t outsource anything,” said Erica Johnson, the company’s director of community development. “We see our installations through from concept to completion. We only use American-made products as part of our commit-ment to quality and sustainability.”

They’ve put installations on two In-ternational Brotherhood of Electrical Workers buildings, and trained the people inside at San Diego City College and the California Center for Sustain-able Energy.

Once a company, a college or a home has its installation, Sullivan stays with them, monitoring the system online and in real time to make sure it pro-duces power at the optimum levels.

The customer can also do that — and the potential customer can look at the generating statistics, updated every 15 minutes for existing home installation on the company’s Web site.

“We include information about how many tons of greenhouse gases and pollution they didn’t produce because they have their own generating sys-tem,” Johnson said. “Our customers really like to check in and see how well they’re doing.”

Marty Graham is a freelance writer for the San Diego Business Journal.

Bob Hoffman Video & Photography

Sullivan Solar Power founder and President Daniel Sullivan says he sees nearly equal interest in solar genera-tion among residential and commercial customers.

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SEPTEMBER 20, 2010 15

SUPPLEMENT TO THE SAN DIEGO BUSINESS JOURNAL I www.sdbj.com

TORREYPINESBANK.COM

100FASTESTGROWINGPRIVATECOMPANIES 2010

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Fitness, Family and Fun.

Raise money to support San Diego Police Officers

Sunday, Sept. 26, 2010

Charity 5K Walk-Fun Run

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8:00am (Registration startsat 7:00am)

Walk with Cops andour good friends, theGirls Scouts

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SEPTEMBER 20, 201016

7No.

President: Cynda Maxon.Location: 2546 San Clemente Terrace, San Diego.2009 revenue: $1.1 million.2007-2009 growth: 219.80 percent.No. of local full-time employees: Five.Web site: maxonconsulting.com.

Maxon Consulting Inc.

Maxon Consulting Caters to Oil And Gas Industry Clients

Company Is a Rarity in San DiegoBY EMMET PIERCE

When Cynda Maxon started Maxon Consult-ing Inc. to help oil and gas industry clients to

adapt to government regulations, she decided the best way to succeed was to surround herself with experienced professionals.

“If you are a small business starting out, it is better to hire very experienced people rather than less-expensive in-experienced people, because you have to spend way too much time develop-ing them,” the company president said. “Another thing is maintaining relation-ships. Your past clients are your best guarantee of staying in business and they will help you when times are bad, or at least try to.”

An ongoing goal is to consistently deliver more than clients expect, on time and within budget. Her approach is working. The company ranks seventh on the San Diego Business Journal’s list of Fastest-Growing Private Com-panies, from 2007 to 2009. During that period the company had a growth rate of almost 220 percent, taking revenue from $342,657 to $1,095,827.

“We cater to a niche market, primar-ily to the oil and gas industry, which is unusual for San Diego,” said Maxon. “Our clients are oil and gas (compa-nies) or federal regulators that have responsibility for oil and gas facilities. We work only in the upstream environ-ment, which means production, explo-ration or development facilities.”

Maxon Consulting helps clients in the offshore oil and gas industry adjust

to changing development regulations. In part, it creates remediation strate-gies and works with clients to mitigate or decrease the potential for adverse environmental impacts from their ac-tivities.

“We usually partner or contract to engineering fi rms,” she said. “We do not have an in-house engineer. We have biologists, an oceanographer, a statisti-cian and a marine chemist.”

Although Maxon is personally expe-rienced in the fi eld of oil cleanup, hav-ing worked on the Exxon Valdez spill in Alaska, her company has no involve-

ment with the recent British Petroleum spill in the Gulf of Mexico. Maxon’s company incorporated in 2005, when she realized she had the tools to open her own business.

“I had worked for several large en-vironmental consulting fi rms in the past,” she said. “It got to a point where I could offer the same services to my clients on my own.”

The company is a California-certifi ed woman-owned business. Currently there are fi ve employees. Each member of the team works from home, but Maxon plans to soon move the group into leased offi ce

space. Her primary clients these days are ExxonMobil and Chevron. She is looking for new opportunities.

“We currently are developing envi-ronmental training curriculum for Exx-onMobil upstream project managers,” she said. “Then we are doing baseline surveys as a precursor to oil explora-tion offshore in Angola, Libya and the Gulf of Alaska. We have three projects going on right now. We are looking to get into the decommissioning of plat-forms offshore.”

Emmet Pierce is a freelance writer for the San Diego Business Journal.

Bob Hoffman Video & Photography

Maxon Consulting President Cynda Maxon, shown with Senior Scientist F. Charles ‘Skip’ Newton, gained experience in the offshore oil and gas industry while working for several large environmental consulting fi rms.

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SEPTEMBER 20, 2010 17

SUPPLEMENT TO THE SAN DIEGO BUSINESS JOURNAL I www.sdbj.com

Updated 8/26/10

Doubletree Hotel San Diego, Mission Valley7450 Hazard Center Dr., San Diego, CA 92108Special Awards Reception with Hosted Hors D’Oeuvres

For More Information Contact April West

• Public Company • Private Company• Nonprofit Organization • Government Agency• Business Nonprofit

An independent panel of judges will select individuals to be honored from the list of nominees in each category.

Please E-mail nominations to [email protected] or submit online at www.sdbj.com/bizevents/

NOMINATION CRITERIA – DEADLINE: OCTOBER 1, 2010

• Nominator name and address, phone and fax numbers and e-mail address.

• Nominee name and address, phone and fax numbers, e-mail address and number of employees.

• How has the CEO contributed to the company’s financial success?

• Describe the community involvement of the CEO and the company.

• State gross revenue for 2007, 2008, and 2009 (optional).

• Describe the CEO’s career success.

• How has the CEO implemented diversity in the workplace?

• How has the CEO contributed to the innovation of the company?

• What philanthropic contributions have the CEO and the company made?

• Describe what the CEO has done to create a positive work environment/employee satisfaction.

• Please explain in 500 words or less why this person should be considered as the Most Admired CEO.

• List four professional references and contact information: – Bank – Law Firm

– Accounting Firm – Major Vendor/Other

• Email company logo in eps format and individual picture of the nominee photo in hi-res jpeg format to [email protected].

This event recognizes dynamic business leaders and role models, selected for their achievements and contributions to San Diego companies.

SAN DIEGO

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Sponsorships Available

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SEPTEMBER 20, 201018

8No.

CEO: Gary Lundstedt.Location: 2255 Barham Drive, Suite A, Escondido.2009 revenue: $3.7 million.2007-2009 growth: 211.45 percent.No. of local full-time employees: 12.Web site: ingeniumgroup-llc.com.

Ingenium

Ingenium Is IngeniousIt Helps Companies With Toxic Waste Green Up to Avoid the Landfi ll

BY MARTY GRAHAM

A fter nearly four years in business, Ingenium, the Escondido-based company that specializes in handling

hazardous material and waste, environ-mental consulting and now renewable energy, has not only carved out a slot for itself in the California marketplace, it has begun changing the landfi ll.

“We’re fi nding ways to innovate and help our clients get their post-pro-duction materials recycled instead of putting them into a landfi ll,” said Gary Lundstedt, a co-founder and the company’s executive director. In one instance, Ingenium is converting medi-cal plastics, including petri dishes and gloves, into energy-producing fuel. An-other innovation came from helping the San Jose-based solar energy panel manufacturer Nanosolar Inc. recycle aluminum that was once classifi ed as a hazardous material.

“That saved Nanosolar hundreds of thousands of dollars — many that would have ended up with Ingenium,” he said wryly. “We think it builds client loyalty.”

Ingenium’s core business, which earned $3.7 million in revenues in 2009, up from $1.2 million in 2007, is hazardous waste management and en-vironmental management in the tech-nology, biopharmaceutical and manu-facturing sector where companies deal with solvents and medical waste, low-level radioactive waste from medi-cal and radiology facilities and danger-ous chemicals like hydrogen sulfi de, classifi ed as a broad-spectrum poison. Ingenium is ranked eighth on the San Diego Business Journal’s list of Fast-est-Growing Private Companies.

“These are regulation-driven indus-tries, and the regulations are very com-

plex,” Lundstedt said. “The regulations overlap in jurisdictions — Cal OSHA, the Department of Transportation, Toxic Substances Control, even the Department of Homeland Security and the California Highway Patrol.”

“For example, with carriers and shippers, all drivers have to have back-ground checks and we have to have a security plan to transport,” he added.

And that’s just moving stuff — not beginning to store or dispose of it safe-ly and per regulations.

“The clients don’t have the capacity or legal authority to move hazardous waste to the disposal facility,” he said. “The reason they contract with us is we have a wide network of proven contrac-tors and contacts so we can fi nd the right fi t for their individual needs.”

Sometimes that means bringing con-tacts together. Like fi nding a comple-mentary waste producer who could add some plastics to the waste stream sup-

plied to the energy recovery industry, which can mix a limited percentage of plastic into its blend.

“We rolled that program out in Au-gust, and we collect and process it with a scrubber, mix with other waste to lower the plastic content and the waste is being diverted from the landfi ll to a benefi cial use,” Lundstedt said, noting that Johnson & Johnson, Amyl and No-vartis have signed exclusive contracts to participate.

The 12 people at the San Diego facil-ity and the six in San Jose have extensive training and experience in the industry. The fi ve founders spent at least 10 years and up to 20 in the business before they set out to build their own business.

Ingenium launched with capital from the fi ve principles and they’ve re-tained control.

“We are going for slow and stable growth and we’re not a revenue-chas-ing machine,” Lundstedt said. “We are

in for the long haul and we plan to deliver quality service to an exclusive clientele.”

Part of the growth came from bio-pharmaceutical companies that had to downsize, with Ingenium being careful to deliver great service at a fair cost, hop-ing they’ll be able to work with the com-panies and people again. In some cases, they were able to place the still-useful chemicals with other companies.

“We have a different philosophy than most companies: We include more stakeholders. Our employees are our best asset and our vendors are very im-portant to us. They all play an integral role and the dynamic of the company is that we place great value on their con-tribution,” Lundstedt said. “Attracting and retaining top talent is the biggest challenge we face.”

They train frequently on safe han-dling and stay very current on regula-tions, maintaining relationships with the regulators. For example, Ingenium worked with state regulators to reclas-sify Nanosolar’s post-manufacturing aluminum as recyclable.

For now, the bulk of the business re-mains dealing with hazardous materi-als and waste.

Some of the stuff is easy, such as contaminated groundwater and soil, which Lundstedt says is hauled to landfi lls with safety precautions.

Some work is far trickier.“As they age, certain solvents can

form compounds that make them highly unstable and even explosive,” Lundstedt said. “Those are usually found at the back of a warehouse or set off to the side, and the companies call us because they don’t know how to deal with it. We do.”

Marty Graham is a freelance writer for the San Diego Business Journal.

Bob Hoffman Video & Photography

Waste products and other materials can be recycled with help from Ingenium staff, shown from left, Mike Johnson, director of operations, Southern California; Heather Dody-Litt, director of sales; and Gary Lundstedt, executive director.

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SEPTEMBER 20, 2010 19

SUPPLEMENT TO THE SAN DIEGO BUSINESS JOURNAL I www.sdbj.com

IT Staffing by IT Professionals

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Continued on Page 24

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SEPTEMBER 20, 201020

9No.

CEO: Maureen E. Gray.Location: 7976 Engineer Road, #200, San Diego.2009 revenue: $28.8 million.2007-2009 growth: 200.48 percent.No. of local full-time employees: 251.Web site: kbmfs.com.

KBM Facility Solutions

KBM Facility Solutions Started With Just a Broom

Offi ce Cleaning Company Serves Clients From Biotechs to HotelsBY EMMET PIERCE

A rmed with a broom, Scott I. Brill, executive vice president of KBM Facility Solutions, began his career in 1985 by

cleaning business offi ces, but he had much bigger plans.

Brill envisioned a large and growing company that could win clients by of-fering superior services. Eventually the company he co-owned, Moore Mainte-nance & Janitorial Services, grew to have about 180 employees. In October 2008, it merged with KBM, which was founded by current CEO Maureen E. Gray in 1981.

The combined company now has about 520 direct employees and manages 430 vendor partners across the U.S. and Canada, Brill said. The company is a cer-tifi ed minority and woman-owned busi-ness enterprise. Based in San Diego, it has offi ces in Rancho Mirage, Anaheim, Houston and Austin, Texas. Brill works out of the Rancho Mirage offi ce while Gray is based in San Diego.

KBM ranks ninth on the Business Journal’s list of Fastest-Growing Private Companies, based on revenue growth from 2007 to 2009. During this period, KBM’s revenue grew from $9,575,026 to $28,771,516, an increase of just over 200 percent.

KBM provides services to a broad range of clients in industries ranging from biotech and aerospace to hotel and retail facilities. The company also prides itself on using green, environmentally friendly technology. One of its services is to help companies reduce their carbon footprints by minimizing waste and the misuse of products. One of its own goals

is to consistently reduce its consumption of non-recycled supplies.

“It is all about our people and our plan-et,” Brill said. “We want to do as much as we can to contribute and be good stew-ards of the Earth.”

The company evaluates each client’s janitorial needs and develops a plan to increase the effi ciency of its cleaning program. Brill said KBM also works hard

to maintain positive communications with its employees.

“It is critical,” he said. “If you don’t have the buy-in and the communication and the growth potential for employees, you are not going to retain long-term partners. I believe that if you have a revolving door that will slow down your growth model. You are going to be bring-ing people in and out to train and hire.

We have employees who have been with us for 25 years.”

Although the company is growing, Brill said some things remain the same as when he started out pushing a broom, before the companies merged. As before, the business continues to aim high.

Emmet Pierce is a freelance writer for the San Diego Business Journal.

Photo courtesy of KBM Facility Solutions

The KBM Facility Solutions executive team oversees about 520 direct employees and manages 430 vendor partners throughout the United States and Canada.

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SEPTEMBER 20, 2010 21

SUPPLEMENT TO THE SAN DIEGO BUSINESS JOURNAL I www.sdbj.com

Re-build Your Team With Minimal Risk

How to Find Power Players

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Susan Afan

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SEPTEMBER 20, 201022

Forward Slope Inc.

0No.

Forward Slope Combines Engineering, Technology and Management Expertise

One of the Co-Founders Was Working at the World Trade Center on 9/11BY MARTY GRAHAM

W ith the January 2010 signing of an $18 mil-lion contract with Space and Naval War-

fare Systems Command, or Spawar, Forward Slope is looking up.

“Sometimes government needs consultants and technical experts to mitigate risks in managing large con-tracts,” said Forward Slope President Carlos Persichetti. “We’re more agile than a large company, the manage-ment decision process is faster.”

One of two core revenue drivers for the company, Forward Slope is re-tained to bridge the gap between the government’s contract requirements and the defense contractor trying to execute the contract on time and at cost. The company is ranked 10th on the San Diego Business Journal’s list of Fastest-Growing Private Companies.

“What the government initially thought isn’t always what will work in the fi eld or with the technology avail-able,” Persichetti said. “Or there’s a smarter or new way to accomplish the same thing.”

Forward Slope was founded in 2002, when Persichetti wrapped up a proj-ect that involved taking a company’s proprietary software into the market-place. He’d met and worked with co-founder and Forward Slope Vice Presi-dent Kevin Noonan — both earned their master’s degrees in business administration under the tutelage of the University of San Diego’s Professor Dan Rivetti.

Persichetti worked as a civilian engi-

neer for the U.S. Navy and shared com-mon goals and values with Noonan, a former U.S. Marine who was working in the Twin Towers at Deutsche Bank the day the planes hit. Both were looking for

a project that would combine their inter-est in engineering and technology with a way to use their management expertise.

The fi rm has an applied software group that has created custom manage-

ment analysis and tracking software for companies including Mortgage Capital Management and the Welk Re-sort Group in Escondido.

“Before the recession, they were about 30 percent to 40 percent of our business,” Persichetti said. “Now, our revenues are about 90 percent defense industry, but we’ve maintained rela-tionships with clients and continue to support them so they’re prepared for growth when things come around.”

Meanwhile, the defense industry contracts continue to fl ow and For-ward Slope is getting more of them as time goes on.

“It took a few years to establish a rep-utation within the defense contracting community and with the Department of Defense,” Persichetti said. “But we’ve established that we’re a wor-thy and valuable partner to Northrop Grumman, Lockheed Martin and Booz Allen & Hamilton and the demand for our services is growing.”

The defense contracts not only re-quire project management skills and expertise, they often require site visits. Forward Slope is involved in a project to build coastal surveillance systems in eight African countries and Bulgaria, part of the post-9/11 push for non-tra-ditional allies.

“I’ve traveled to Nigeria, Cameroon, Sierra Leone, Bulgaria and Seychelles so far,” Persichetti said. “On one trip to Ni-geria, I brought a bunch of soccer balls to a nearby village and handed them out to kids. It has been a great experience.”

Marty Graham is a freelance writer for the San Diego Business Journal.

President: Carlos Persichetti.Location: 3935 Harney St., Suite 100, San Diego.2009 revenue: $7.6 million.2007-2009 growth: 185.61 percent.No. of local full-time employees: 45.Web site: forwardslope.com.

Bob Hoffman Video & Photography

Forward Slope President Carlos Persichetti says he has traveled extensively while providing consulting services for large government contracts.

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SEPTEMBER 20, 2010 23

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4909 Murphy Canyon Rd., Suite 200, San Diego, CA 92123 | fax 858.277.2149 | www.sdbj.com

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SEPTEMBER 20, 201024

Continued from Page 19

Continued on Page 26

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Continued from Page 24

Anybody Can Claim To Be Number OneWe can prove it.

Serving America’s Finest City Since 1959

1) Company financial filings; CBRE 2009 revenue: $4.2 billion; CBRE 2009 normalized EBITDA: $454 million; CBRE normalized net income: $110 million; CBRE 2009 normalized EBITDA margin: 10.9%. 2) The Black Book of Outsourcing, Top Facilities Management Outsourcing Vendors, March 2010. 3) Real Capital Analytics, December 2009. 4) “Top 25 Brokerages,” National Real Estate Investor, April 2010. 5) The Lipsey Company Brand Survey, 2010, 9th consecutive year. 6) “Top 25 Property Managers,” National Real Estate Investor, June-July 2010. 7) “Greenest Big Companies in America,” Newsweek, September 28, 2009; U.S. EPA 2010 Sustained Excellence Award (Partner of the Year status three consecutive years). 8) Only commercial real estate services company on “Companies That Care Honor Roll,” The Center for Companies That Care, 2008, 2009, 2010. 9) Fortune, May 3, 2010. 10) Financial Times and Investors Chronicle’s Annual Wealth Management Awards, 2010.

(that’s why we moved the fine print up top)

#1 in financial performance—by any measure 1

#1 global corporate real estate outsourcing firm 2

#1 U.S. investment sales 3

#1 in global brokerage services 4

#1 most admired brand 5

#1 global property management firm 6

#1 in environmental sustainability 7

#1 in corporate responsibility 8

Only Fortune 500 firm 9

#1 property investment advisor 10

The right business partner for all your real estate needs. | 858.546.4600 | www.cbre.com/sandiego

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SUPPLEMENT TO THE SAN DIEGO BUSINESS JOURNAL I www.sdbj.com

4909 Murphy Canyon Rd., Suite 200, San Diego, CA 92123 | fax 858.277.2149 | www.sdbj.com Updated 9/14/10

For More Information Contact April West

1. Online:

2. Phone:

3. E-mail:

4. Fax:

5. Mail:

REGISTRATIONOPTIONS:

Cancellation not accepted7 days prior to event.

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Charge to: Visa MasterCard American Express Discover

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TICKET QUANTITYTable of 10 @ $725 /table

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Table of 10: $725 • Individual Tickets: $75 Ticket Price Includes: 26-week subscription to the San Diego Business Journal ($15 allocated to the subscription). Current subscribers may gift the 26-week subscription to a colleague.

2010

S A N D I E G O

B U S I N E S S J O U R N A L

(Registration begins at 11 a.m.)Town and Country Resort & Convention Center500 Hotel Circle North, San Diego, CA 92108Lunch will be served

This event recognizes dynamic women business leaders and role models, selected for their achievements and contributions to San Diego companies.

Courage Award

Susan G. Komen for the Cure

Community Leadership Award

UC San Diego Extension

Lifetime Achievement Award

Philanthropist

Exemplary Award

San Diego Police Department

Sponsorships Available

Keynote Speaker

San Diego County District Attorney

Emcee Emcee

REGISTER TODAY

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Us.

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Open the channels of communication

Closely monitor workloads

Acknowledge, praise and reward

Build camaraderie and community

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SEPTEMBER 20, 201032

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Jazzercise Inc.KBM Facility SolutionsKR Landscape Maintenance, Inc.Managed Solution LLCMaxon Consulting, Inc.MIR3 Inc.Mitchell InternationalMonk Development Inc.Motive Interactive Inc.MTCSC Inc.MyOffice Inc.Nautilus EnvironmentalNinyo & MooreNYCAOne Source Distributors LLCPayLease Inc.Phoenix Water Management LLCPixeled Business SystemsPrometheusRed Door Interactive Inc.Rescue Social Change Group LLCRJC Architects Inc.Robanda International Inc.Scantibodies Laboratory Inc.SeaBotix Inc.SeaSpine Inc.Sentek GlobalSeQual Technologies Inc.Service-Now.comServi-Tek LLCSGISSharepoint360Shoe MetroSiteLab International Inc.Solpac Construction Inc.Southland Technology Inc.Space Micro Inc.Stone Brewing Co.Stroller Strides LLCSullivan Solar PowerSynteract Inc.T.B. Penick & Sons Inc.Techflow Inc.The Active NetworkThe Cydio Group Inc.The Kleinfelder GroupTorrey Hills Technologies LLCVavi Sport and Social ClubVinculum Communications Inc.WordSmartZenzi

Co-Sponsors

PRIVATE RECEPTIONHonoring San Diego’s

100 Fastest Growing Private Companies

GROWING PRIVATE COMPANIES

Congratulations TO THIS YEAR’S 100 FASTEST

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www.copylink.net | 877-424-8015

For 20 Years, Copy Link has been…• A San Diego Leader in the Office Equipment Industry

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• Offering a Cost-Efficient Array of Advanced Technology Office Products and Services

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SEPTEMBER 20, 2010 35

SUPPLEMENT TO THE SAN DIEGO BUSINESS JOURNAL I www.sdbj.com

The San Diego Business Journal’s

landmark Book of Lists is the premier

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SEPTEMBER 20, 201036

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Look for The McGladrey Classic in October 2010 - a new Fall Series event.

Straight up the hill and fi rm, Z.Yep. Got it.

Team McGladrey Golfer Zach Johnson and his caddie, Damon Green.

© 2010 RSM McGladrey Inc. All rights reserved.