Business Plan

1. Executive Summary AXAStone, Inc. and its Huligar Restoration division bring a long history of dimensional stone experience (interior stone surfaces) to the Caribbean islands of Anguilla "Serenity Wrapped in Blue", St. Martin (St. Maarten), St. Kitts, and Nevis, all known for privacy, high end hotels, and luxury homes. AXAStone’s owner Josveek O. Huligar is a native of Anguilla and is now returning from the New York City region with over a decade of big city stone experience to serve the growing island market demand for locally fabricated natural stone surfaces. This demand is driven by the expanding tourism, hospitality, luxury home, and banking industries. Specializing in Granite and Marble, AXAStone will establish the only fully equipped dimensional stone fabrication facility on Anguilla and the other islands. As a local stone provider, AXAStone will provide the market with the luxury and quality of natural stone, along with strong value, good prices, and quality service - long awaited alternatives to off-island stone fabricators whose distance hampers price and service. Products offered include kitchen counters, bathroom vanities, service bars (all expertly installed), and stone restoration and maintenance services. Purpose of this Business Plan - • First - to clearly identify markets and prospects, assets and strategies, so to enable the owner / operator to guide the company to attain stated objectives. • Second - to establish a reliable information tool for use by third parties who may play a financial role in the company's development. Natural stone is the oldest building material known to man, and is in high demand in luxury island tourist destinations. Its use adds both permanence and elegance to modern construction, and it enhances any building space aesthetically, while providing high performance and low maintenance. Because of that demand and the unique advantages offered to the market by an on-island fabrication facility, AXAStone anticipates annual sales to rise 100% during its initial years from just under $1,000,000.00 its first year to approximately $2,000,000.00 its third year. Highlights

1.1. Objectives During its first 24 months AXAstone's principal objective is to secure entry into the multi-island natural stone fabrication and installation market while attaining at least 30% of total market sales. AXAStone and Huligar will foster demand in the 2cm granite segment by enabling the market to understand the viability of this alternative for certain applications. By the end of year one, targeted gross sales should be at least $900,000.00. By the end of year three, gross sales should approach $1,800,000.00, which is the equivalent of approximately 16 basic kitchens per month. 1.2. Mission AXAstone's mission is to deliver high quality, locally fabricated, natural Granite to residential and commercial markets at a reasonable price, with a focus on personal service. In addition, AXAStone offers design and templating services, and through Huligar Restoration, stone maintenance, repair, and sealing services. A full service shop dedicated to natural stone surfaces and meeting the needs of the island business and residential communities. Granite is the natural stone type (all varieties) that AXAStone is devoted to developing expertise in. As a granite specialist, AXAStone will not offer engineered stone, or other composites, at least not until the granite specialty and expertise has matured and stabilized, and secured market recognition. Other common surface stones like Marble will be sold to customers requesting same on a special order basis. Six reasons for specializing in Granite: 1. Granite is the most popular natural stone, is available in many varieties, and represents the largest segment of the domestic natural stone market. 2. Specialization fosters efficiency in delivering products and services. 3. Granite is easily cared for and maintained in the most hostile conditions. 4. To educate the general public about stone, and gain their confidence, on a shorter learning curve. 5. To support the business' stone maintenance service segment. 6. Lighter Granite varieties can be custom colored (through AXAStone’s Huligar Restoration division) to suit any customer’s style or theme when natural colors don’t. Through its specialized expertise, AXAStone / Huligar Restoration will become a trusted supplier of fabrication and maintenance services to contractors in the construction and home improvement industries, enabling them to expand their stone resource and pricing alternatives. 1.3. Keys to Success Success is driven by the following factors: • Specialization in Granite. • Specific knowledge of Granite varieties, sources, and characteristics. • Expertise in Granite fabrication, installation, and maintenance. • Customers are offered a representative selection of available granite types. • Customers receive quality service, reliable installation, and hand-crafted detail. • Products and services are priced reasonably and fairly. • Owner Operator takes pride in the craftsmanship and quality provided to customers. It's not just to make customers happy; it's a personal imperative and value. • Owner Operator knows the island business and political communities and offers the trust and familiarity of being a native member of those communities. AXAStone distinguishes itself by not trying to be all things, but merely all things Granite on Anguilla and surrounding high tourism islands. Specializing in one type of stone improves the caliber of knowledge and service offered to customers, and eliminates the need to venture into areas of diminished competence and the associated risks. It also avoids the investment of time and resources in subject areas and skill sets that would not serve the bulk of AXAstone's customers. 2. Company Summary AXAStone is a natural stone fabrication and maintenance start-up company dedicated to serving the rapidly growing natural stone building materials market. Homeowners and hotels, villas, and builders are its principal customers. Josveek O. Huligar, the company's founder and principal, has developed product management, production, and market expertise through years of hands-on experience within other fabrication shops since 1994. Mr. Huligar has also independently offered stone protection, repair, restoration, and maintenance services to the New York City regional and other US markets since 1996. During his tenure with other regional stone fabricators, Mr. Huligar quickly developed the essential skills and knowledge for stone fabrication, installation, and maintenance. He has simultaneously observed the local natural stone industry and market. Josveek O. Huligar is now prepared to enter this dynamic, growing industry, and serve its emerging market by offering quality alternatives. 2.1. Company Ownership AXAStone Work, Inc. (featuring Huligar Restoration) is an Anguilla, British West Indies Corporation, founded, owned, and operated by Josveek O. Huligar. The company, based in South hill, Anguilla, was established in February, 2007. Josveek O. Huligar is the Company's Owner, President, and production facility supervisor. Josveek O. Huligar is also Secretary and Treasurer. Administrative functions including bookkeeping and scheduling are handled by staff. Josveek O. Huligar has worked as a stone maintenance and restoration specialist, fabricator, and installer since 1994. 2.2. Start-up Summary Total start-up requirements will approximate $300,000.00, including current and long-term assets of approximately $190,000.00. In order to commence and develop fabrication operations, and competently fulfill anticipated sales, AXAStone will require the following facilities, equipment, inventory, and supplies. 1. 3000 Square foot Production and Service Facility - The production and service facility is owned by Josveek Huligar or his family, and as a consequence, lease costs will be $0.00 per month. Mr. Huligar (AXAStone) has invested to date approximately $30,000.00 in preparing the site and building for use as a fabrication shop and production facility, and will invest another $10,000.00. Approximately 15% of the production facility will serve as a stone and product showroom. Initially, the showroom will be comprised of various granite slabs both as slabs, and with finished product illustrations incorporated into cabinets. Creating the showroom is expected to cost approximately $7500.00. 1. Current Assets - Include polishing pads, steel rods, anchors, adhesives, sealers and polishes, cleaning agents and tools, and safety equipment. A complete list is attached (See, Section 9.0 Start-up Assets Detail Table below). 2. Long-Term Assets - Include a radial arm polisher, a diamond dimensional saw, compressors, grinders, polishers, saws, drills, core bits, turbo pads, anchor machine and bits, wheels, cutting blades, fabrication tables, carts & stands, stone holding, moving, and storage devices, and mounting equipment. A complete list is attached (See, Section 9.0 Start-up Assets Detail Table below). Start-up costs will be financed partially by direct owner investment of $10,000 and financing in the amount of $280,000. Details are included in the following table and chart. To assure a prudent development pace, during the enterprise's initial 2-3 years, stone fabrication and finishing will be oriented around the development and refinement of hand skills, with the use of power hand tools. In stone working, well-developed (trained) hand skills enable the producer (shop) to focus on craftsmanship and details. Stone surface buyers highly value the visual and aesthetic details. Large cutting machines (costing approximately $100,000.00), are important to accommodate expected production volume efficiently while providing the custom fabrication sought by the market. The nature of the market, which includes many commercial hospitality properties, requires the ability to serve and produce multi-unit orders. While these machines will be used for much of AXAstone’s production requirements, AXAStone will also develop the basic craftsman skills essential to a "custom fabricator", thus avoiding delivery of products with a "mass produced" look or feel. Because AXAStone is focused on the basic quality standards that custom hand working enables, it will use large equipment in combination with custom fabrication hand tools. In this manner, production and knowledge of craftsman processes will not be dependent upon the large sophisticated machines, and the bigger machines, deployed to serve volume demand, will be operated by personnel knowledgeable in the basics ... that is, by craftsmen. Stone Fabrication technology is continually advancing and developing, and AXAStone expects to take a measured, cautious approach to technology acquisition as production and efficiency needs arise within the context of custom fabrication, to assure lower production costs, increased profit, and larger market share. Start-up Requirements Start-up Expenses Legal $750 Stationery etc. $250 Insurance $300 Computer $2,000 Consulting Fees (Plan Writing) $700 Utilities (Telephone, Electric) $500 Signage $500 Advertising $500 Shop Set up and Contingencies $3,500 Total Start-up Expenses $9,000 Start-up Assets Cash Required $7,500 Start-up Inventory $7,500 Other Current Assets $5,498 Long-term Assets $160,928 Total Assets $181,426 Total Requirements $190,426 Start-up

3. Products and Services AXAStone imports only the highest quality stone, which is most suitable for the islands' climatic and other conditions - the environment in which the stone will "perform". Granite, created by nature and fashioned man, is an investment that homeowners and hospitality property owners never regret. With deep iridescent colors, granite offers an elusive, one-of-a-kind beauty created only in nature. As a result, granite surfaces add distinct character and warmth to kitchens, bathrooms, and other areas of a home with richness that cannot be duplicated in synthetic materials. AXAStone provides two principal services, along with related products. 1. Custom fabrication of granite countertops and surfaces. Stone fabrication services include: templating, cutting, edging, polishing, installation, and tear-out. Specializing in kitchen countertops, hotel granite surfaces, and bathroom vanities. 2. Through its Huligar Restoration division - technical sealing, maintenance, and repair of stone surfaces. Stone repair and maintenance services include: o Repair of chips & seams. o Cleaning and sealing granite surfaces. o Removing scratches and stains in granite surfaces. In this case related product sales include: cleaners, sealers, and polish for the care of natural stone. Initially, granite and peripheral inventory will be minimized. To the extent feasible, granite and Marble slabs will be ordered as requested by customers. Standard varietals Stone samples will be maintained on site for customer examination and selection. As sales increase, an in house inventory will develop to enable customers to select actual slabs for their project. While inventoried slabs will consist primarily of granite varietals, AXAStone will special order any type of stone suitable to island conditions for customers. Since many of the granite fabrication and maintenance services provided by AXAStone will be for countertops, vanities, bars, and other work surfaces incorporating running water, sink installation is commonly an integral part of the stone surface installation process. As an adjunct to its granite sales, AXAStone will also offer and sell a variety of sink makes and models. Initially, sinks will be supplied on an as-ordered basis, without maintaining an inventory. A sink inventory may evolve as demand increases. Sink supply sources include local distributors, and a variety of manufacturers worldwide. Access to domestic and foreign sink manufacturers has improved in recent years through on-line sourcing and purchasing capabilities. Anticipated service and product customer pricing is as follows : A.) Repair / Maintenance 1. Seam repair - $250.00 per seam 2. Chips repaired - $75.00 per insistent 3. Clean / Seal - $8.00/ sf 4. Stains removed - $100.00 minimum (prices range from $100.00 to $350.00) 5. Surface re-polishing - $250.00 service call fee + $15.00 per sf. B.) Fabrication 1. Material – AXAStone’s cost ranges from $8.95 to $260.95 / sf. This cost is passed along directly to customer. Factors affecting cost include quantity purchased, source, size, rarity, and quality. 2. Fabrication - charge to customer is $40.00 / sf 3. Edging - charge to customer is per linear foot depending on type of cut: 3/8" roundover - $10.00 - Bevel - $15.00 - Half bull - $20.00 4. Under-mount sinks - $350.00 (installed customer price). 5. Top-mount sinks - $200.00 (installed customer price). 6. Under-mount vanities - $250.00 (installed customer price). 7. Top-mount vanities - $100.00 (installed customer price). 8. Cook top cutouts - $150.00 flat fee. When customers purchase sinks, AXAStone provides sink installation (this cost is factored into stone installation charges), without a separate sink installation charge. Also, sinks are priced to customers at 100% above AXAStone's cost, so that margin is sufficient to profitably cover the sink installation cost. Granite slabs will be acquired from 2 principal off-island distributors. These are established and reliable suppliers. 4. Market Analysis Summary AXAStone and its geographical market are located in Anguilla, British West Indies, within a short distance of other major Caribbean tourist destinations St. Martin (St. Maarten), St. Kitts, Nevis, and the neighboring U.S. and British Virgin Islands. Regional transport services provide convenient access to these markets. The market region is comprised of many population centers in which much tourism related growth and construction are occurring. Anguilla has a resident population of approximately 13,000, and nearly 4000 homes, with an annual growth rate of about 3%. The population has increased at a fairly constant rate with only a few minor fluctuations over the past ten years. St. Martin and St. Kitts and Nevis have populations of approximately 77,000 and 35,000 respectively. Annual visitors to Anguilla number approximately 150,000 and they stay an average of 8 days in the island's 800 hotel rooms, situated in 50 hotels, villas, and guesthouses. Between 2004 and 2005 Anguilla's tourism increased by 19%. While 53% of visitors are from the United States, 18% are from Europe (Britain, Italy, Germany, others), 5% are from Canada, and 20% from regional island nations. The Anguilla economy is robust because it serves not only as a tourist destination, but as a destination for international offshore banking and finance as well. On St. Martin, over 2000 rooms provide accommodations for every taste ranging from large, comprehensive resort facilities and condominiums to small, intimate guest houses, timeshares and apartments. Through on-site research and direct communication with builders and other fabrication shop owners, AXAStone has determined that hotel and villa development has risen dramatically in recent years, and is expected to continue at a healthy rate on the islands. As tourism grows, so too will the local infrastructure required to serve that tourism. The existing fabrication sources (off-island shops) are struggling to keep up with demand for stone surface products. AXAStone has observed a significant increase (and steady rise) in demand for stone fabrication, repair, and maintenance services. Island tourist resort facility development and remodeling on the four islands served are booming, and this activity is expected to continue trending upward. While the construction market does pitch and roll economically, when it does the demand for stone surfaces strengthens in the hotel improvement market as resort owners and operators upgrade marketable features. Demand for quality stone surfaces is driven by the hospitality industry's need to offer luxury or first class accommodations to its tourism market. High quality natural materials are part of the "experience" the industry offers. As tourism grows so too will the number of workers needed to serve that industry, and facilities and housing to accommodate those workers. 4.1. Market Segmentation The market for AXAStone's stone maintenance and repair services is segmented as follows in order of priority: • Hotel and Resort Owners and Operators • Homeowners - Home Builders • Stone Installers • Business owners • Commercial Cleaning Companies. The market for AXAStone's stone fabrication and installation is segmented as follows in order of priority: • Hotel and Resort Owners and Operators • Builders • Homeowners • Other Fabrication Shops. Figures and charts do not include off-shore accounts: Market Analysis 2008 2009 2010 2011 2012 Potential Customers Growth CAGR Stone Fabrication Shops 7% 5 5 5 5 5 0.00% Home Owners 7% 1,000 1,070 1,145 1,225 1,311 7.00% Builders 3% 100 103 106 109 112 2.87% Commercial Cleaning Companies 3% 75 77 79 81 83 2.57% Business Owners 5% 350 368 386 405 425 4.97% Hotel and Resort Owners/Operators 7% 650 696 745 797 853 7.03% Total 6.35% 2,180 2,319 2,466 2,622 2,789 6.35% Market Analysis (Pie)

4.2. Target Market Segment Strategy Each of the identified market segments is a specific group of likely buyers. While all homeowners and resort operators may "want" or "could use" granite countertops, we recognize that only a portion are viable prospects for granite surface purchases. AXAStone has estimated the number of homes and resorts within market communities that are likely to upgrade to granite via remodeling or purchase for new construction in the next 24 months. The same analysis applies to businesses likely to be furnishing their facilities with granite surfaces. A significant number of Island residents work within the hospitality and tourist industries. Because of this interaction, crossover sales and referrals between segments are expected to be significant. Market segmentation strategy is straightforward, and addresses all relevant community components. Planning and implementing specific strategies for each of the identified segments will be an on-going process, as Josveek Huligar consults with marketing specialists, stone suppliers, and stone industry experts to further refine these efforts as we develop our marketing plan. 4.3. Service Business Analysis Josveek O. Huligar, a native of Anguilla, is intimately familiar with most of the stone fabrication competition serving the Island communities. The few retail shops that operate on the islands served by AXAStone are very small operations. Those producing stone surfaces for the island(s) are “off-island” supply sources, usually in Italy and England. This distance diminishes hands on service, causes delays, communication and installation problems, and resulting cost increases. Principal differences between AXAStone and the fabrication shop competition are: • AXAStone is the only “full service” “on-island” stone fabrication and maintenance facility available to island markets, doing everything from templating to installation and maintenance and repair, expertly. • AXAStone's strong focus on customer service, quality and professionalism. • As a direct stone importer (not buying through distributors) AXAStone will also offer well-priced raw material choices to customers at its local slab-yard. • AXAStone’s facility will have the capacity to produce in volume as required by local developers and market demand. During Josveek O. Huligar's tenure with the various competitors and the stone fabrication industry generally he observed that these factors were often not a priority. So, herein lays AXAStone's significant opportunity. Another strategic distinction between AXAStone and those presently supplying fabricated granite to the islands is that it will also offer 2cm granite (only one other company presently does so). Typically, all natural stone is produced and distributed in 3cm slabs. This standard variety of stone thickness has proven popular, and industry pricing is built around that standard. However, due to the increasing popularity of natural stone as a surface covering, and the increasing availability of stone from around the world, many consumers of stone prefer the lower price alternative of 2cm stone, when it is available. For many applications 2cm stone is aesthetically acceptable and appropriate, especially given its lower price. This segment of the market is currently under-served and expected to grow in coming years. AXAStone will concentrate on developing and serving that alternative demand, thereby distinguishing itself. 4.3.1. Competition and Buying Patterns Homeowners and business buyers understand the concept of service and support, and are much more likely to pay for it when clearly stated. AXAStone expects to compete more against the off island big producers than against small regional fabricators and service providers (there aren't that many of the latter). AXAStone will effectively compete against the idea that once a stone surface is installed, that's it, and the fabricator disappears. As a part of the on-island business community AXAStone will instead be there to continually serve the customers' ongoing natural stone surface care and maintenance needs long after the initial installation is complete. The Maintenance and Repair (Restoration) division of AXAStone will assure the practical implementation of this competitive strategy. In addition, to support this strategy, AXAStone will offer customers a lifetime warranty on their granite surfaces and installation services for an additional 20% per installation. Our focus group sessions indicate that our target markets think about price, but would likely base purchase decisions on quality service if the subject was properly presented. Price considerations typically predominate in market's mind because that's all the competition typically presents. Our data strongly indicates that many stone buyers would rather pay 10-20% more for a relationship with a long-term vendor providing back-up and quality service and support; these customers end up buying from the box-pusher channels because they drown out the alternatives like AXAStone. Competition depends on a variety of factors - demand, price, product quality, service, and reputation. Because demand for natural stone surfaces is raising new fabrication shops entering the market are not necessarily drawing a piece of the market away from existing fabrication shops. Customers for natural stone prefer to make purchase decisions after examining stone in person. Thus, showrooms containing varietals samples draw customers to the fabricator and aid the sales process. Being on-island gives AXAStone a tremendous advantage over the competition. 4.4. Stone Industry Market Trends Stone World Magazine, a credible industry authority, reports in January 2007 that 78.8% of stone producers expect increases in the stone market during the next 5 -10 years, 58.2% of them expect increases during 2007, and 69% actually experienced sales increases during 2006. Of those predicting increases for 2007, 84% predict sales will rise by over 10%, and 41% expect 2007 sales growth to exceed 16%. One in eight expected sales to rise by 25%. Stone World also reports that of its fabricator survey respondents, over 75% generated sales greater than $500,000.00 in 2006. As a consequence of these trends, stone importers, fabricators and installers are scrambling to keep up with rising U.S. and regional demand. According to statistics reported in Stone World, December 2006: • Total Tons of Granite imported into the US during August 2006 = 207,916 • Total Tons of Granite imported into the US during August 2005 = 146,335 • Increase for that month, year to year = 61,581 or a 42% increase. • Total Dollar Value of Granite imported into the US during August 2006 = $130,428,642.00 • Total Dollar Value (cost) of Granite imported into the US during August 2005 = $105,184,410.00 • Increase year to year = $25,244,232.00 or a 24% increase. So, the volume is increasing and the material cost is declining. The countries delivering the most Granite to the US are Brazil, Italy, China, India, Taiwan, and Spain, in that order. "Research Shows Stone Consumption Continues Upward Climb Stone World (12/01/06) The natural stone market in the United States is healthy and will continue to offer profitable opportunities for importers, fabricators, and installers over the next six years, according to the Stone Product Industry Report 2006. The study from Ceramic Tile and Stone Consultants (CTaSC) and Catalina Research reveals that the value of the market reached a record $6.04 billion of manufacturers' dollars in total U.S. supply for a compound annual growth rate (CAGR) of 15.4 percent from 1998 to 2005, compared to sales of $3.04 billion and a CAGR of 8.7 percent for ceramic tile-stone's closest competitor. From 1992 to 2005, stone consumption rose 69.1 percent; and in 2005, 956 million square feet was sold and the cost of a square foot averaged $18.16. New technology, improvements in stone processing equipment, and an increase in rough and worked stone from overseas have helped to lower costs; and the 9 percent decline from 2002. This is one of the key reasons that demand for stone is on the rise in the United States. The booming housing market in 2005 also helped to fuel demand, with granite accounting for 50.9 percent of the domestic supply in this category and 46.8 percent of imports. Nonetheless, the industry faces some challenges in improving testing of stone and finding enough skilled workers to install it. Still, consumers should enjoy even better prices in the years to come as the industry sees a 10.1 percent CAGR from 2006 to 2011." These facts overwhelmingly demonstrate that natural stone sales are strongly climbing upward, which bodes well for industry participants. There are several specific reasons for the optimistic expectations: market trends, overall construction growth, continued remodeling activity, and a continued increase in demand for stone surfaces. These expectations are solid despite respondents' acknowledgement of a slowing U.S. real estate construction sector during 2006. Despite the home construction slowdown, stone sales trends remain upward. Why? Because there is no substitute for natural stone's beauty, unique origins, visual slice of nature's geological history, in addition to it durability and functionality. These characteristics add value to any environment natural stone is made a part of. Stone costs are continuing to decline (9% since 2002) due to a variety of factors including increased availability from foreign suppliers like China, Brazil, Turkey, and India, improved worldwide shipping, and increasing efficiency in stone quarrying. This is having a direct affect on stone popularity / demand. More consumers are investing in home environment quality and comfort, especially in high use spaces like kitchens and baths. Increasing numbers of stone fabricators entering the market is putting downward pressure on pricing, but overall demand remains strong and increasing, thus accommodating the new entrants. 5. Strategy and Implementation Summary 1. Emphasize quality, originality, and "World Class Service". AXAStone will differentiate itself from its competitors by offering a certified staff trained in and dedicated to customer service, thus readily meeting clients' expectations. 2. Build a community / corporate relationship-oriented business. AXAStone will focus on strengthening customer trust, and providing not only services, but information that will aid customers in understanding all aspects of granite acquisition and usage, and the convenience and value of granite surfaces. 3. Having clearly defined the target markets, AXAStone differentiates itself by offering a unique solution to customers' stone surface needs. The sales and marketing strategy combine targeted mass marketing techniques and focused direct sales. Reasonable sales targets have been established to assure goals are achieved. 4. AXAStone's marketing strategy focuses primarily on increasing sales and profitability in granite countertops quickly through development of a highly visible web identity and platform, locally optimized for the geographic areas served, without resorting to expensive direct mail or other traditional mass marketing programs that are not thoroughly market-tested. This can be achieved by securing customer confidence and trust through first class, service oriented, informational website features that demonstrate AXAStone's granite expertise. 5.1. SWOT Analysis 5.1.1. Strengths 1. The only “full service” on island stone fabrication facility. 2. Principal market advantage is that AXAStone is on-island, more convenient, and better priced than the alternatives. 3. Experienced in fabrication techniques; whether by hand or machine 4. Experienced in installation techniques 5. Strong focus on customer service 6. Strong focus on quality products 7. Able to adapt to change 8. Central island location for maximum customer potential. 5.1.2. Weaknesses Business and concept is new to the island. 5.1.3. Opportunities Competitor Shortcomings – Off island competitors can’t or don’t serve customers well, primarily because their sales to these islands is such small part of their overall sales. The customers on these islands are not their priority or focus, so the result is poor customer management. They think more about accounting and big picture sales than serving the island customers. They’re failure to property serve the island luxury stone market (e.g., failure to address poor installation and post-installation issues) creates unhappy customers, and a bad reputation, and interrupt sales. AXAStone views this poor management and failed customer service in other fabrication shops as an opportunity. AXAStone seeks to build reputation, and views the satisfied customer as its number one priority, and its best opportunity for steady growth. Its competitors’ shortcomings enable AXAStone to fill the service void, and turn their unhappy customers into AXAStone advocates. Other Opportunities Include - • On-Island location enables direct reach into marketplace. • Growing market with a significant percentage of target market still unaware of our quality and advantages. • Strategic alliances offering sources for referrals and joint marketing activities to extend our reach. • Promising activity from continuing upward trend of hotel, hospitality, and tourist facilities, new home construction, and residential remodeling. • Changes in design trends can initiate hospitality facility and home updating, and therefore, generate sales. • Internet potential for selling AXAStone's service advantages and visually reaching customers who would otherwise not learn of our presence and advantages. 5.1.4. Threats Existing, entrenched stone fabrication facilities who will not welcome an on-island competitor that is skilled in the arts of stone fabrication, stone restoration, and stone manipulation. 5.2. Competitive Edge Aside from specializing in Granite (as opposed to offering all stone types), a principal competitive advantage for AXAStone is that it combines two critical functional areas of expertise and offers both to the market. One is custom fabrication and templating, and the other is specialized maintenance and repair for Natural Stone surfaces. Of all the existing competitors, AXAStone is the only service offering both granite fabrication and expertise in Natural Stone maintenance, repair, and restoration. This distinction and niche expertise will serve to draw customers who want the convenience of on-island stone installation and maintenance services coupled with lower prices. The neighboring islands would be happy to have post installation service readily available. Another advantage for AXAStone is this: its competitors are off island. Josveek O. Huligar is a native of Anguilla, has a deep family history on the island, and extensive knowledge of the island's businesses and people, how they do business, and who is doing what, when. Being familiar with island administrators and business leaders is also an edge. On island property owners and developers prefer to deal with "local" providers, especially when, as here, the local provider is able to reduce construction costs while offering superior service and products. 5.3. Marketing Strategy AXAStone will secure strategic liaisons with larger and established off-island fabrication shops to accommodate their overflow fabrication, installation, and maintenance work. This will occur as AXAStone builds its reputation for quality, reliability, and timeliness within the Anguilla and local island communities. AXAStone and its principal Josveek O. Huligar is a member of the Marble Institute of America, and Natural Stone Restoration Alliance. The MIA promotes the interests of the U.S. and regional stone fabrication industries, an organization of Slab Fabricators from around the world devoted to increasing the quality of fabrication methods and practices through information exchange and education. The Natural Stone Restoration Alliance promotes the serviceability of natural stone. Josveek O. Huligar is the primary instructor, and has personally taught over 240 students in the last two years. AXAStone will deliver professional, quality services at competitive prices. Focus on high customer service standards and the convenience on-island production facilities will assure a good competitive position. Because AXAStone's principal will be selling, and supervising templating, fabricating, and installation, customers gain the comfort and confidence of dealing directly with the company owner instead of several parties. AXAStone is permitted the opportunity to closely tend to every phase of the process. This "hands on" approach will be used to develop AXAStone's positive reputation. To gain visibility and name recognition, AXAStone will place advertisements in local phone books, local news and business publications, and billboards. It will also sponsor events and radio raffles. These combined advertising tools will reach most prospective customers in the island markets served. Word-of-mouth marketing coupled with affiliate / incentive / referral programs. Due to the highly visual and aesthetic nature of granite, satisfied customers, and others who see AXAStone's finished product and quality, will naturally "talk it up". This informal, but natural, communication link is likely to be an important marketing factor. To assure these opportunities are not lost, AXAStone will implement a referral / affiliate program under which satisfied customers qualify for a project discount or cash reward for successful (contracted) referrals. AXAStone will establish strategic liaisons with other countertop fabricators specializing in non-stone materials. Under this program the other fabricators will refer customers seeking quality stone fabrication to AXAStone in exchange for a pre-arranged referral fee. AXAStone will establish a "discount" program for first-time commercial customers (hotel operators and owners, builders and others who are likely to be repeat buyers). This discount will act as a buyer incentive. Trust and Reliability are customer relations factors that AXAStone will deliberately cultivate for purposes business development. These factors are especially relevant in producing and delivering a construction or renovation product with such a strong visual profile. As the only regional stone fabricator also offering and specialized in granite sealing, cleaning, maintenance and repair, AXAStone anticipates customer cross-over and cross referrals to develop as a consequence of this unique positioning. The majority of residential and commercial construction contractors are viable customer candidates because, even though they may have established supplier relationships for stone products, they are always looking to more efficiently and affordably serve their customers, and so are always considering new or supplemental supplier alternatives. Because AXAStone will be on the islands it will procure, fabricate, and install quality granite surfaces more efficiently and at a competitive rate. On island developers, property owners and their contractors will naturally opt for these improved alternative services and products. AXAStone will not be successful waiting for customers to knock on its door. Instead, it will focus on those specific market segments whose needs match its offered products and services. Focusing on these targeted segments is key to strong sales. AXAStone’s focus and marketing message will be the services and convenience offered and its commitment to quality. Publicity will be generated through: • Direct communication with Hotel and Resort Operators • Internet website • Print ads • Membership in various organizations • Community Involvement Program • Business-to-business personal contact 5.4. Sales Strategy AXAStone will offer a unique solution to stone fabrication on the islands - a local provider with world class experience. AXAStone will be introduced to the market through targeted advertising, direct mail, website optimization, and direct sales. Direct sales will be conducted by Josveek O. Huligar due to his extensive knowledge of the island community, established business relations, and unique ability to gather relevant property development information. Mr. Huligar will manage the hospitality markets through personal sales calls. This market is a long term, repetitive business where relationships are a key component to success. Sales will be targeted to Anguilla home owners and hotel operators in the early stages. Plans to expand into the surrounding island markets are scheduled for 2009 and beyond. 5.4.1. Sales Forecast The following table and charts present the AXAStone sales forecast. By the end of year one, AXAStone anticipates sales and production levels to rise to 11 kitchens, 9 bathroom vanities, 7 service bars, 9 restoration / maintenance projects per month. By the end of year three, those levels should rise to 16 kitchens, 10 bathroom vanities, 10 service bars, 11 restoration / maintenance projects per month. A typical kitchen counter / surface project are approximately 71.5 s.f. of stone, and 38 linear feet of surface edges. Stone costs average $17.95 / s.f., fabrication charges are typically $40.00 / s.f., basic edging is $10.00 / l.f., and a typical sink cost is $320.00. With a project markup of 20%, AXAStone would price the fabrication and installation of an average kitchen at approximately $5,812.11. A typical bathroom vanity project will be priced at approximate $2,500.00, and service bars at $2,200.00. Restoration projects for an average kitchen are sold at $1,400.00 or less, depending on the extent of work required. Sales Forecast 2008 2009 2010 Unit Sales Kitchens 96 135 192 Bathrooms - Vanities 74 95 120 Service Bars 62 90 120 Granite Maintenance 77 100 130 Total Unit Sales 309 420 562 Unit Prices 2008 2009 2010 Kitchens $5,800.00 $5,800.00 $5,800.00 Bathrooms - Vanities $2,479.00 $2,479.00 $2,479.00 Service Bars $2,211.00 $2,211.00 $2,211.00 Granite Maintenance $1,420.00 $1,420.00 $1,420.00 Sales Kitchens $556,800 $783,000 $1,113,600 Bathrooms - Vanities $183,446 $235,505 $297,480 Service Bars $137,082 $198,990 $265,320 Granite Maintenance $109,340 $142,000 $184,600 Total Sales $986,668 $1,359,495 $1,861,000 Direct Unit Costs 2008 2009 2010 Kitchens $1,856.00 $1,856.00 $1,856.00 Bathrooms - Vanities $743.70 $743.70 $743.70 Service Bars $663.30 $663.30 $663.30 Granite Maintenance $255.60 $255.60 $255.60 Direct Cost of Sales Kitchens $178,176 $250,560 $356,352 Bathrooms - Vanities $55,034 $70,652 $89,244 Service Bars $41,125 $59,697 $79,596 Granite Maintenance $19,681 $25,560 $33,228 Subtotal Direct Cost of Sales $294,016 $406,469 $558,420 Sales Monthly

Sales by Year

5.5. Milestones The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. Milestones Milestone Start Date End Date Budget Manager Department Secure Funding 7/26/2007 10/15/2007 $0 JH Principal / Owner Order Equipment 8/15/2007 12/01/2007 $0 JH Principal / Owner Corporate Identity 7/26/2007 8/25/2007 $0 JH Principal / Owner Complete Shop Build out 10/15/2007 11/15/2007 JH Principal/ Owner Complete Equipment Installation and Set Up 11/15/2007 12/31/2007 JH Principal / Owner Hire and Train Employees 11/15/2007 12/20/2007 JH Principal / Owner Open Shop for Business 1/01/2008 1/07/2008 $0 All All Totals $0 Milestones

6. Web Plan Summary AXAStone has developed and uses a website, which enables interaction with the marketplace. It is available at http://www.axastone.com/. Another website demonstrating the Huligar Restoration division’s abilities and history is available at http://www.huligar.com. Over time, these sites will be linked together, and additional materials and information will be developed for these sites to improve customer service and the sales process. 6.1. Website Marketing Strategy AXAStone has implemented a multi-page website as a marketing and communications platform and uses it in the following manner to educate prospective customers and improve the sales process: Custom Fabrication Illustrations - Gallery of descriptions and Photos. Various Pages in brochure style explain the competitive advantages offered to customers, pricing benefits, and the value of custom fabrication, and the benefits of AXAStone's emphasis on customer service, especially through its Huligar Stone Restoration division. Various pages illustrating granite varieties available for purchase, their origin, pricing and specifications. An extensive frequently asked questions (FAQ) page answers many common questions about selecting and installing stone surfaces, and illustrates for customers that AXAStone is a knowledgeable supplier. A page for customers to enter information about themselves and their stone project, and request a quotation or additional sales follow up. Additional pages provide customers with company and background information about AXAStone and its principal Josveek Huligar. Website content will be optimized for search engines, thus enabling anyone in the regional island market searching for local granite providers to find AXAStone. 6.2. Development Requirements (section omitted) 7. Management Summary AXAStone's management team is comprised of the following principals: Company owner Josveek O. Huligar will act the businesses' general manager, and will act as its president and secretary. This senior management role will embrace shop, supply chain, production, and sales. 7.1. Personnel Plan Beginning January 2008, the first year, AXAStone will employ and train two Fabrication technicians in the shop, two on-site Installers, two office administrators, one templating specialist, and the Owner Shop Manager full time, 40 hours per week each. In years 2 and 3, 2009 and 2010, AXAStone will add one person to the fabrication team, and one installer. In years 4 and 5 AXAStone expects that it will employ 4 or 5 full time shop personnel in various functions. This management team will work closely together, serving common company objectives. Personnel Plan 2008 2009 2010 2 Installers $56,004 $84,000 $84,000 1.5 Office Administrators (Support & Accounting) $45,000 $45,000 $45,000 2 Fabricators $66,000 $99,000 $99,000 Templating Specialist $18,000 $18,000 $20,000 Owner - Shop Manager $34,800 $34,800 $40,000 Total People 8 10 10 Total Payroll $219,804 $280,800 $288,000 8. Financial Plan The following is a brief statement of AXAStone's financial plan. 8.1. Start-up Funding Owner Josveek O. Huligar will invest another $10,000 in cash, equipment, and labor to the start up. To date Mr. Huligar has invested $30,000.00 in the preparation of the site and building for use as a stone fabrication and production facility. Investors AXAStone is in the process of negotiating with potential investors for the seed cash needed to start the business. While the amount raised is as yet unknown, it is anticipated for purposes of this analysis that $22,000 will be raised from family and local investors to start the business. Bank Financing AXAStone is submitting business plans and other requested documents to financial institutions in pursuit of the additional funds required to finance the company's equipment acquisition and provide operating cash. It is expected that the loan may be a part of government enterprise development programs. It is assumed that the terms of the loan will require repayment in 7 years, at a rate of 6.75%. AXAStone's anticipated start-up funds are: • $272,000.00 bank loan • $ unknown family or local investors (estimating $22,000) • $10,000.00 Owner investment (+ $30,000.00 already invested in site) • $7,500.00 in credit from stone suppliers. The additional capital is needed to acquire fund salaries, inventory lags and other costs during the first months of the business year. Start up funds will be used to improve shop facilities, acquire equipment, machinery, tools, supplies, operational expenses, and advertising. Specifically, AXAStone intends to acquire a radial arm polisher and a diamond dimensional bridge saw for cutting and a router for edging. Initially the balance of fabrication activities will be by hand. While new equipment is preferred, used equipment comparisons and pricing will be evaluated. Start-up Funding Start-up Expenses to Fund $9,000 Start-up Assets to Fund $181,426 Total Funding Required $190,426 Assets Non-cash Assets from Start-up $173,926 Cash Requirements from Start-up $7,500 Additional Cash Raised $129,798 Cash Balance on Starting Date $137,298 Total Assets $311,224 Liabilities and Capital Liabilities Current Borrowing $0 Long-term Liabilities $250,000 Accounts Payable (Outstanding Bills) $7,500 Other Current Liabilities (interest-free) $0 Total Liabilities $257,500 Capital Planned Investment Owner $40,000 Investor $22,724 Additional Investment Requirement $0 Total Planned Investment $62,724 Loss at Start-up (Start-up Expenses) ($9,000) Total Capital $53,724 Total Capital and Liabilities $311,224 Total Funding $320,224 8.2. Important Assumptions • Continued steady economic growth in the islands especially in tourism and hospitality industries. • The ability to quickly seize sales momentum through Mr. Huligar’s personal and business contacts within the on-island business community. 8.3. Break-even Analysis Break-even Analysis Monthly Units Break-even 10 Monthly Revenue Break-even $31,217 Assumptions: Average Per-Unit Revenue $3,193.10 Average Per-Unit Variable Cost $951.51 Estimated Monthly Fixed Cost $21,915 Break-even Analysis

8.4. Projected Profit and Loss Pro Forma Profit and Loss 2008 2009 2010 Sales $986,668 $1,359,495 $1,861,000 Direct Costs of Goods $294,016 $406,469 $558,420 Other Costs of Goods $0 $0 $0 ------------ ------------ ------------ Cost of Goods Sold $294,016 $406,469 $558,420 Gross Margin $692,652 $953,027 $1,302,580 Gross Margin % 70.20% 70.10% 69.99% Expenses Payroll $219,804 $280,800 $288,000 Marketing/Promotion $3,600 $3,600 $3,600 Depreciation $0 $0 $0 Rent $0 $0 $0 Utilities $4,200 $4,200 $4,200 Insurance $2,400 $2,400 $2,400 Payroll Taxes $32,971 $42,120 $43,200 Other $0 $0 $0 ------------ ------------ ------------ Total Operating Expenses $262,975 $333,120 $341,400 Profit Before Interest and Taxes $429,678 $619,907 $961,180 EBITDA $429,678 $619,907 $961,180 Interest Expense $16,327 $15,356 $14,344 Taxes Incurred $103,338 $151,138 $236,709 Net Profit $310,013 $453,413 $710,127 Net Profit/Sales 31.42% 33.35% 38.16% Profit Monthly

Profit Yearly

Gross Margin Monthly

Gross Margin Yearly

8.5. Projected Cash Flow Pro Forma Cash Flow 2008 2009 2010 Cash Received Cash from Operations Cash Sales $740,001 $1,019,621 $1,395,750 Cash from Receivables $219,028 $329,430 $451,202 Subtotal Cash from Operations $959,029 $1,349,051 $1,846,952 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $959,029 $1,349,051 $1,846,952 Expenditures 2008 2009 2010 Expenditures from Operations Cash Spending $219,804 $280,800 $288,000 Bill Payments $436,923 $639,823 $860,568 Subtotal Spent on Operations $656,727 $920,623 $1,148,568 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $15,000 $15,000 $15,000 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $671,727 $935,623 $1,163,568 Net Cash Flow $287,302 $413,428 $683,384 Cash Balance $424,600 $838,028 $1,521,412 Cash Cash

8.6. Projected Balance Sheet Pro Forma Balance Sheet 2008 2009 2010 Assets Current Assets Cash $424,600 $838,028 $1,521,412 Accounts Receivable $27,639 $38,083 $52,131 Inventory $34,053 $47,077 $64,676 Other Current Assets $5,498 $5,498 $5,498 Total Current Assets $491,790 $928,686 $1,643,717 Long-term Assets Long-term Assets $160,928 $160,928 $160,928 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $160,928 $160,928 $160,928 Total Assets $652,718 $1,089,614 $1,804,645 Liabilities and Capital 2008 2009 2010 Current Liabilities Accounts Payable $54,168 $52,464 $72,368 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $54,168 $52,464 $72,368 Long-term Liabilities $235,000 $220,000 $205,000 Total Liabilities $289,168 $272,464 $277,368 Paid-in Capital $62,724 $62,724 $62,724 Retained Earnings ($9,000) $301,013 $754,426 Earnings $310,013 $453,413 $710,127 Total Capital $363,737 $817,150 $1,527,277 Total Liabilities and Capital $652,905 $1,089,614 $1,804,645 Net Worth $363,550 $817,150 $1,527,277 8.7. Business Ratios Ratio Analysis 2008 2009 2010 Industry Profile Sales Growth 0.00% 37.79% 36.89% 8.41% Percent of Total Assets Accounts Receivable 4.23% 3.50% 2.89% 25.99% Inventory 5.22% 4.32% 3.58% 31.18% Other Current Assets 0.84% 0.50% 0.30% 23.61% Total Current Assets 75.34% 85.23% 91.08% 80.78% Long-term Assets 24.66% 14.77% 8.92% 19.22% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 8.30% 4.81% 4.01% 35.20% Long-term Liabilities 36.00% 20.19% 11.36% 23.15% Total Liabilities 44.30% 25.01% 15.37% 58.35% Net Worth 55.70% 74.99% 84.63% 41.65% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 70.20% 70.10% 69.99% 24.02% Selling, General & Administrative Expenses 38.78% 36.75% 31.84% 11.00% Advertising Expenses 0.00% 0.00% 0.00% 0.61% Profit Before Interest and Taxes 43.55% 45.60% 51.65% 0.94% Main Ratios Current 9.08 17.70 22.71 2.01 Quick 8.45 16.80 21.82 1.08 Total Debt to Total Assets 44.30% 25.01% 15.37% 61.77% Pre-tax Return on Net Worth 113.70% 73.98% 62.00% 1.66% Pre-tax Return on Assets 63.33% 55.48% 52.47% 4.34% Additional Ratios 2008 2009 2010 Net Profit Margin 31.42% 33.35% 38.16% n.a Return on Equity 85.27% 55.49% 46.50% n.a Activity Ratios Accounts Receivable Turnover 8.92 8.92 8.92 n.a Collection Days 29 35 35 n.a Inventory Turnover 12.00 10.02 9.99 n.a Accounts Payable Turnover 8.92 12.17 12.17 n.a Payment Days 28 30 26 n.a Total Asset Turnover 1.51 1.25 1.03 n.a Debt Ratios Debt to Net Worth 0.80 0.33 0.18 n.a Current Liab. to Liab. 0.19 0.19 0.26 n.a Liquidity Ratios Net Working Capital $437,622 $876,222 $1,571,350 n.a Interest Coverage 26.32 40.37 67.01 n.a Additional Ratios Assets to Sales 0.66 0.80 0.97 n.a Current Debt/Total Assets 8% 5% 4% n.a Acid Test 7.94 16.08 21.10 n.a Sales/Net Worth 2.71 1.66 1.22 n.a Dividend Payout 0.00 0.00 0.00 n.a 9. Tables - Start Up Assets Detail Current Asset Description Units Unit Price Total Cost Running Total 6" Rigid Backup Pads - Aluminum 6.0 15.00 $90.00 $90.00 3" Flexible Backup Pads 6.0 7.50 $45.00 $135.00 4" Wet Polish Pad sets 4.0 213.50 $854.00 $989.00 4" Dry Polish Pad sets 4.0 163.10 $652.40 $1,641.40 3" Wet Polish Pad sets 2.0 179.50 $359.00 $2,000.40 Steel Rods (sets of 20) 2.0 33.50 $67.00 $2,067.40 T-31 Anchors (1/4") 2.0 68.00 $136.00 $2,203.40 Vitribond Pads - sets 2.0 145.85 $291.70 $2,495.10 Flexdiscs - sets 5.0 104.25 $521.25 $3,016.35 Air Cooled backup pads 2.0 17.60 $35.20 $3,051.55 Case of Knifegrade Adhesive (6count) 1.0 65.70 $65.70 $3,117.25 Case of Flowing Adhesive (6count) 1.0 70.86 $70.86 $3,188.11 Penetrating Epoxy (quarts) 3.0 23.95 $71.85 $3,259.96 Ager Sealer (quarts) 3.0 54.52 $163.56 $3,423.52 Case of Impregnator / Sealer 1.0 239.50 $239.50 $3,663.02 Case of 3-in-1 Spray Polish 2.0 76.92 $153.84 $3,816.86 Case of Black Wax 1.0 65.70 $65.70 $3,882.56 Case of Clear Wax 1.0 65.70 $65.70 $3,948.26 Color Kit 4.0 23.92 $95.68 $4,043.94 Case of Stone Cleaner 1.0 169.50 $169.50 $4,213.44 Case of Pectro Black 6.0 25.60 $153.60 $4,367.04 Case of Pectro Clear 6.0 25.60 $153.60 $4,520.64 Stir Stix 5.0 6.95 $34.75 $4,555.39 Razor Blades 10.0 3.50 $35.00 $4,590.39 Steel Wool 10.0 1.29 $12.90 $4,603.29 Ear Plugs (sets) 2.0 26.95 $53.90 $4,657.19 Respirator Masks 5.0 24.95 $124.75 $4,781.94 Waterproof Aprons 4.0 9.95 $39.80 $4,821.74 Waterproof Boots (pairs) 4.0 19.95 $79.80 $4,901.54 Safety Glasses 10.0 2.95 $29.50 $4,931.04 Waterproof Coats 4.0 9.95 $39.80 $4,970.84 Case of Undermount Sink Setters 2.0 263.40 $526.80 $5,497.64 Total: $0.00 $5,497.64 Long-Term Asset Description Units Unit Price Total Cost Running Total Radial Arm Polisher 1.0 45,000.00 $48,900.00 $48,900.00 Diamond Dimensnl Saw 1.0 56,000.00 $59,900.00 $108,800.00 1 3/8" Core Bits 4.0 70.00 $280.00 $109,080.00 1 1/2" Core Bits 4.0 76.50 $306.00 $109,386.00 2" Core Bits 2.0 86.50 $173.00 $109,559.00 Alpha Turbo Pad Sets w/Adaptor 2.0 351.60 $703.20 $110,262.20 Variable Speed Grinders 4.0 179.00 $716.00 $110,978.20 Single Speed Grinders 4.0 179.00 $716.00 $111,694.20 Center Water feed Polishers 4.0 229.00 $916.00 $112,610.20 Air Polishers 4.0 159.00 $636.00 $113,246.20 Worm Drive Circular Saws 2.0 179.00 $358.00 $113,604.20 Sink Roding Saws 2.0 175.00 $350.00 $113,954.20 Electric Core Press 1.0 1,634.00 $1,634.00 $115,588.20 T-31 Pneumatic Anchor Machine 1.0 989.00 $989.00 $116,577.20 T-31 Anchor Bits 5.0 28.00 $140.00 $116,717.20 6E0600 Grinder 1.0 112.00 $112.00 $116,829.20 4" Cup Wheels Coarse 2.0 89.00 $178.00 $117,007.20 4" Cup Wheels Medium 2.0 89.00 $178.00 $117,185.20 2" Zero Tolerance Wheels 2.0 99.00 $198.00 $117,383.20 1" zero Tolerance Wheels 2.0 89.00 $178.00 $117,561.20 4" Contour Blades 3.0 119.00 $357.00 $117,918.20 5" Turbo Cutting Blades 10.0 32.00 $320.00 $118,238.20 A-Frames 5.0 1,095.00 $5,475.00 $123,713.20 A-Frame Shop Carts 2.0 695.00 $1,390.00 $125,103.20 Fabrication Stands 10.0 99.00 $990.00 $126,093.20 7" Cutting Blades 4.0 57.00 $228.00 $126,321.20 Roding Blades 2.0 80.00 $160.00 $126,481.20 Work Tables 2.0 896.00 $1,792.00 $128,273.20 Suction Cups 4.0 19.95 $79.80 $128,353.00 Suction Cup Bar Support System 1.0 395.00 $395.00 $128,748.00 Seam Setter 1.0 295.00 $295.00 $129,043.00 Slab Storage Rack System 2.0 1,295.00 $2,590.00 $131,633.00 Extension Cords 6.0 16.95 $101.70 $131,734.70 Carry Clamps (sets) 2.0 249.00 $498.00 $132,232.70 25' Tape Measures 6.0 16.50 $99.00 $132,331.70 Jigsaw 1.0 50.00 $50.00 $132,381.70 Reciprocating Saw 1.0 100.00 $100.00 $132,481.70 Cordless Drill 1.0 75.00 $75.00 $132,556.70 Forklift Boom 1.0 1,021.00 $1,021.00 $133,577.70 Used 6000lb Pneumatic LP Forklift 1.0 7,500.00 $7,500.00 $141,077.70 Slab Gripper 1.0 449.00 $449.00 $141,526.70 Air Compressor 1.0 6,929.00 $6,929.00 $148,455.70 Hydraulic Slab Cart 1.0 4,250.00 $4,250.00 $152,705.70 Slab Table 1.0 675.00 $675.00 $153,380.70 Hammer Drill 1.0 199.00 $199.00 $153,579.70 Accuglide Saw System 1.0 2,649.00 $2,649.00 $156,228.70 Accuglide 6' and 5' rails (2 each) 1.0 1,508.00 $1,508.00 $157,736.70 Router Hydroplane 1.0 2,195.00 $2,195.00 $159,931.70 Router Bits 3/4" radius 1&2 2.0 299.00 $598.00 $160,529.70 Router Bits 3/4" bevel 1&2 2.0 199.00 $398.00 $160,927.70 Total Long-Term Start Up Assets $160,927.70 Total of Current and Long Term Assets $166,425.34 Sales Forecast Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Unit Sales Kitchens 0% 4 5 6 7 7 9 9 9 10 9 10 11 Bathrooms - Vanities 0% 4 4 5 5 5 6 6 6 8 8 8 9 Service Bars 0% 3 3 4 4 5 5 5 6 6 7 7 7 Granite Maintenance 0% 3 3 4 4 6 6 8 8 8 9 9 9 Total Unit Sales 14 15 19 20 23 26 28 29 32 33 34 36 Unit Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Kitchens $5,800.00 $5,800.00 $5,800.00 $5,800.00 $5,800.00 $5,800.00 $5,800.00 $5,800.00 $5,800.00 $5,800.00 $5,800.00 $5,800.00 Bathrooms - Vanities $2,479.00 $2,479.00 $2,479.00 $2,479.00 $2,479.00 $2,479.00 $2,479.00 $2,479.00 $2,479.00 $2,479.00 $2,479.00 $2,479.00 Service Bars $2,211.00 $2,211.00 $2,211.00 $2,211.00 $2,211.00 $2,211.00 $2,211.00 $2,211.00 $2,211.00 $2,211.00 $2,211.00 $2,211.00 Granite Maintenance $1,420.00 $1,420.00 $1,420.00 $1,420.00 $1,420.00 $1,420.00 $1,420.00 $1,420.00 $1,420.00 $1,420.00 $1,420.00 $1,420.00 Sales Kitchens $23,200 $29,000 $34,800 $40,600 $40,600 $52,200 $52,200 $52,200 $58,000 $52,200 $58,000 $63,800 Bathrooms - Vanities $9,916 $9,916 $12,395 $12,395 $12,395 $14,874 $14,874 $14,874 $19,832 $19,832 $19,832 $22,311 Service Bars $6,633 $6,633 $8,844 $8,844 $11,055 $11,055 $11,055 $13,266 $13,266 $15,477 $15,477 $15,477 Granite Maintenance $4,260 $4,260 $5,680 $5,680 $8,520 $8,520 $11,360 $11,360 $11,360 $12,780 $12,780 $12,780 Total Sales $44,009 $49,809 $61,719 $67,519 $72,570 $86,649 $89,489 $91,700 $102,458 $100,289 $106,089 $114,368 Direct Unit Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Kitchens 32.00% $1,856.00 $1,856.00 $1,856.00 $1,856.00 $1,856.00 $1,856.00 $1,856.00 $1,856.00 $1,856.00 $1,856.00 $1,856.00 $1,856.00 Bathrooms - Vanities 30.00% $743.70 $743.70 $743.70 $743.70 $743.70 $743.70 $743.70 $743.70 $743.70 $743.70 $743.70 $743.70 Service Bars 30.00% $663.30 $663.30 $663.30 $663.30 $663.30 $663.30 $663.30 $663.30 $663.30 $663.30 $663.30 $663.30 Granite Maintenance 18.00% $255.60 $255.60 $255.60 $255.60 $255.60 $255.60 $255.60 $255.60 $255.60 $255.60 $255.60 $255.60 Direct Cost of Sales Kitchens $7,424 $9,280 $11,136 $12,992 $12,992 $16,704 $16,704 $16,704 $18,560 $16,704 $18,560 $20,416 Bathrooms - Vanities $2,975 $2,975 $3,719 $3,719 $3,719 $4,462 $4,462 $4,462 $5,950 $5,950 $5,950 $6,693 Service Bars $1,990 $1,990 $2,653 $2,653 $3,317 $3,317 $3,317 $3,980 $3,980 $4,643 $4,643 $4,643 Granite Maintenance $767 $767 $1,022 $1,022 $1,534 $1,534 $2,045 $2,045 $2,045 $2,300 $2,300 $2,300 Subtotal Direct Cost of Sales $13,156 $15,012 $18,530 $20,386 $21,561 $26,016 $26,528 $27,191 $30,534 $29,597 $31,453 $34,053 Personnel Plan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2 Installers 0% $4,667 $4,667 $4,667 $4,667 $4,667 $4,667 $4,667 $4,667 $4,667 $4,667 $4,667 $4,667 1.5 Office Administrators (Support & Accounting) 0% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 2 Fabricators 0% $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 Templating Specialist 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Owner - Shop Manager 0% $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 $2,900 Total People 8 8 8 8 8 8 8 8 8 8 8 8 Total Payroll $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 Pro Forma Profit and Loss Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales $44,009 $49,809 $61,719 $67,519 $72,570 $86,649 $89,489 $91,700 $102,458 $100,289 $106,089 $114,368 Direct Costs of Goods $13,156 $15,012 $18,530 $20,386 $21,561 $26,016 $26,528 $27,191 $30,534 $29,597 $31,453 $34,053 Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Cost of Goods Sold $13,156 $15,012 $18,530 $20,386 $21,561 $26,016 $26,528 $27,191 $30,534 $29,597 $31,453 $34,053 Gross Margin $30,854 $34,798 $43,189 $47,133 $51,009 $60,633 $62,962 $64,509 $71,924 $70,692 $74,636 $80,315 Gross Margin % 70.11% 69.86% 69.98% 69.81% 70.29% 69.98% 70.36% 70.35% 70.20% 70.49% 70.35% 70.23% Expenses Payroll $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 Marketing/Promotion $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Utilities $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 Payroll Taxes 15% $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Operating Expenses $21,915 $21,915 $21,915 $21,915 $21,915 $21,915 $21,915 $21,915 $21,915 $21,915 $21,915 $21,915 Profit Before Interest and Taxes $8,939 $12,883 $21,274 $25,218 $29,095 $38,718 $41,047 $42,595 $50,009 $48,777 $52,721 $58,401 EBITDA $8,939 $12,883 $21,274 $25,218 $29,095 $38,718 $41,047 $42,595 $50,009 $48,777 $52,721 $58,401 Interest Expense $1,399 $1,392 $1,385 $1,378 $1,371 $1,364 $1,357 $1,350 $1,343 $1,336 $1,329 $1,322 Taxes Incurred $1,885 $2,873 $4,972 $5,960 $6,931 $9,339 $9,922 $10,311 $12,167 $11,860 $12,848 $14,270 Net Profit $5,655 $8,618 $14,917 $17,880 $20,793 $28,016 $29,767 $30,933 $36,500 $35,581 $38,544 $42,809 Net Profit/Sales 12.85% 17.30% 24.17% 26.48% 28.65% 32.33% 33.26% 33.73% 35.62% 35.48% 36.33% 37.43% Pro Forma Cash Flow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash Received Cash from Operations Cash Sales $33,007 $37,357 $46,289 $50,639 $54,428 $64,987 $67,117 $68,775 $76,844 $75,217 $79,567 $85,776 Cash from Receivables $367 $11,051 $12,552 $15,478 $16,922 $18,260 $21,686 $22,391 $23,015 $25,596 $25,121 $26,591 Subtotal Cash from Operations $33,373 $48,407 $58,841 $66,117 $71,349 $83,247 $88,803 $91,166 $99,858 $100,813 $104,687 $112,367 Additional Cash Received Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Received $33,373 $48,407 $58,841 $66,117 $71,349 $83,247 $88,803 $91,166 $99,858 $100,813 $104,687 $112,367 Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Expenditures from Operations Cash Spending $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 $18,317 Bill Payments $8,356 $25,661 $24,972 $32,043 $33,226 $34,973 $44,677 $41,956 $43,375 $50,800 $45,642 $51,242 Subtotal Spent on Operations $26,673 $43,978 $43,289 $50,360 $51,543 $53,290 $62,994 $60,273 $61,692 $69,117 $63,959 $69,559 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Long-term Liabilities Principal Repayment $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Spent $27,923 $45,228 $44,539 $51,610 $52,793 $54,540 $64,244 $61,523 $62,942 $70,367 $65,209 $70,809 Net Cash Flow $5,450 $3,180 $14,301 $14,507 $18,556 $28,707 $24,559 $29,643 $36,916 $30,446 $39,479 $41,558 Cash Balance $142,748 $145,928 $160,229 $174,737 $193,293 $222,000 $246,559 $276,202 $313,118 $343,563 $383,042 $424,600 Pro Forma Balance Sheet Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Assets Starting Balances Current Assets Cash $137,298 $142,748 $145,928 $160,229 $174,737 $193,293 $222,000 $246,559 $276,202 $313,118 $343,563 $383,042 $424,600 Accounts Receivable $0 $10,636 $12,037 $14,915 $16,317 $17,538 $20,940 $21,627 $22,161 $24,761 $24,237 $25,638 $27,639 Inventory $7,500 $13,156 $15,012 $18,530 $20,386 $21,561 $26,016 $26,528 $27,191 $30,534 $29,597 $31,453 $34,053 Other Current Assets $5,498 $5,498 $5,498 $5,498 $5,498 $5,498 $5,498 $5,498 $5,498 $5,498 $5,498 $5,498 $5,498 Total Current Assets $150,296 $172,037 $178,475 $199,173 $216,938 $237,889 $274,454 $300,211 $331,051 $373,910 $402,895 $445,632 $491,790 Long-term Assets Long-term Assets $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Long-term Assets $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 $160,928 Total Assets $311,224 $332,965 $339,402 $360,101 $377,866 $398,817 $435,382 $461,138 $491,979 $534,838 $563,823 $606,559 $652,718 Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Current Liabilities Accounts Payable $7,500 $24,836 $23,906 $30,937 $32,072 $33,480 $43,280 $40,659 $41,816 $49,472 $44,126 $49,568 $54,168 Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Current Liabilities $7,500 $24,836 $23,906 $30,937 $32,072 $33,480 $43,280 $40,659 $41,816 $49,472 $44,126 $49,568 $54,168 Long-term Liabilities $250,000 $248,750 $247,500 $246,250 $245,000 $243,750 $242,500 $241,250 $240,000 $238,750 $237,500 $236,250 $235,000 Total Liabilities $257,500 $273,586 $271,406 $277,187 $277,072 $277,230 $285,780 $281,909 $281,816 $288,222 $281,626 $285,818 $289,168 Paid-in Capital $62,724 $62,724 $62,724 $62,724 $62,724 $62,724 $62,724 $62,724 $62,724 $62,724 $62,724 $62,724 $62,724 Retained Earnings ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) Earnings $0 $5,655 $14,273 $29,190 $47,070 $67,863 $95,878 $125,646 $156,579 $193,079 $228,660 $267,204 $310,013 Total Capital $53,724 $59,379 $67,997 $82,914 $100,794 $121,587 $149,602 $179,370 $210,303 $246,803 $282,384 $320,928 $363,737 Total Liabilities and Capital $311,224 $332,965 $339,402 $360,101 $377,866 $398,817 $435,382 $461,279 $492,119 $535,025 $564,010 $606,747 $652,905 Net Worth $53,724 $59,379 $67,997 $82,914 $100,794 $121,587 $149,602 $179,229 $210,163 $246,616 $282,197 $320,741 $363,550

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