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Enchanted Plaza

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Enchanted Plaza

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Enchanted PlazaA Computer Automated

Virtual Reality Shopping Website

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Table of Contents

1. Executive Summary

2. Company Overview / Marketing

3. Management Team - Resumes

4. Company Proprietary Software

5. Capital Funding Methods

6. Start-Up Use of Proceeds

7. 4 Years Sales Forecast

8. Operating Cost Years 1 – 2

9. Profit/ Loss Cash Flow Years 1 – 2

10. Operating Cost Years 3 - 4

11. Profit/Loss Cash Flow Years 3 - 4

12. 4 Years P/L % Summary

13. Competition

14. Notable eCommerce Companies

15. 2006 Global Internet Sales

16. Current Global Internet sales

17. Global eCommerce Projected

18. Conclusion

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Executive Summary

Enchanted Plaza

1 Executive Introduction and Summary

Enchanted Plaza is a startup company formed and motivated by the apparent lack in the current internet

industry of a more attractive, less expensive method of internet advertising and retail sales display formats.

To capitalize on this deficiency our VP a computer wizard and his associates have developed a proprietary

technical engineering blueprint for the development of computer software that is capable of producing highly

attractive computer animated, audio – visual - virtual reality 3D displays for use in internet advertising and

retail sales.

Because of these features our displays are not only a much more effective type of media and that they are

totally computer created can be offered at much less cost to our advertising customers, than that of the current

competition.

Some internet companies boast about the reason for their success is because of the number of visitors they have

to their site but in reality any website submitted to the massive search engine system can accumulate hundreds

of millions of visitors in a very short time so these numbers are not of great importance, it is the number of the

visitors who purchase products or services from the site and become customers of the website company that is

important.

It’s simple, if you have a more attractive and interesting website placed in front of millions of viewers you will

have more visitors to your website and if the products offered are of the best quality at a lower price the site will

have more repeat customers and generate more sales, this is particularly true for advertising customers.

Global internet marketing studies and trends indicate that advertising sales will dominate retail sales by the

ratio of 60 % advertising and 40 % retail sales in the near future.

Because of the dynamic capabilities of our displays produces an excellent retail shopping experience in a unique

environment it is an excellent location for commercial advertising therefore we expect our major income

income source will be in advertising display sales.

The disadvantage of internet retail sales is that the revenue to the website is discounted from the retail sales

price, usually about 20 to 30 %. This means that the site has to sell one or a number of product for $ 250 to

receive $ 75. Sales for a directly shipped manufactures product is discounted typically 40% to 50 %. The

Pg. 1 Continued

advantage of internet retail sales however, is that the company does essentially nothing except

display the product and receives 20 to 30 % of the sale and because the sales and payments are

automatically processed by the automated merchant payment processing system the company

has received this income percentage while incurring very little cost.

Our retail sales customer will have the option of us designing their retail “Point of Sales “ ( POS

) displays for a fee, or an increase in the discounted price of their products sold on our website.

What appears to be a disadvantage / advantage of internet advertising sales income is that

although100 % of the sale is billed and received it has also incurred the initial cost of making the

original sale, which by our 2nd

year P/L accounting is about 27 % to 30 %, however these cost

are not recurring, once the sale has been made the company will continue to receive payments

for displaying the ad which incurs no additional cost, therefore if the ad is displayed for any

considerable period of time the cost of the sale will quickly be offset and the remaining payments

to the company will be gross profit.

Also because of the company’s very low overhead , due to our nearly completely computerized

business operations and the enormous search engine generated worldwide public exposure we

will be able to offer better advertising services at a much lower price than the competition and

still maintain a very high profit margin.

The current annual global internet sales market is approximately $449 billion. We at Enchanted Plaza are confident that after receipt of the initial startup capital noted in the “ Capital Funding “ page and with moderate future increases of operating capital as intended within this business plan, the company could, in a relatively short period of time capture a minimum of .001 ( 1/10th of 1 % ) of this market or 449 million dollars in gross annual revenue and with the potential of obtaining a great deal more in the future.

The information detailed within this business plan as follows are about as complete as can be

complied about the company at this juncture, but if we can provide further information for you

please contact the company at the address or phone numbers appended on the conclusion / Summation page at the end of this business plan.

Thank You for your review of our business plan Shawn Marie Lopez, President and Chief Executive Officer

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A unique and proprietary three dimensional (3D) virtual reality shopping plazaAnimated marketingCustomizableThe user controls everythingImagine a world-wide virtual shopping experienceWe will offer both nationally and internationally manufactured consumer productsVendors will have actual store imagesStore displays will be customizable to the vendorsEverything will be completely computer automated70% of income will come from marketing salesOnline marketing

Company Introduction

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Shawn Marie Lopez: Shawn Marie is the President and CEO as well as the Director of Marketing, Sales and Contract Negotiations for the company. She is the founder of the Enchanted Plaza and is the principle corporate shareholder.

Kyra A. Liebert: Kyra Is the company’s Corporate CFO. Her principle responsibilities are the supervision and management of the company’s non-technical office personnel, sales assistance and customer service. She will also provide the company’s management of all phases of legal, general accounting, corporate records / reporting and tax returns as required. Kyra is a co-founder of the Enchanted Plaza and is a Corporate Officer and shareholder.

John Marler: John is VP and Chief Engineer of the company. His responsibility are on-going development of the company’s and vendor’s current and future technical website software design requirements as well as technical website sales solicitation. John is a co-founder of the Enchanted Plaza and is a Corporate Officer and shareholder.

Jack Thatcher: Is an Independent Business Financial Consultant. Mr. Thatcher is not a corporate officer although he is an important member of the management team and has full authority to represent the company in matters of capital funding in concert with company management.

The Management Team

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Website copyright filed, software patent pendingMultifunctional fully animated, highly graphic virtual displays

3D Modeling and Animation w/ audio and video capabilitiesBuildingsInterior- decorations, items for sale, and overall presentation, all updateableExterior- signs, advertisements, decorations

LandscapesMultiple environments based on real life locations and fantasy worldsSelectable dynamic animations such as: birds in the sky, cars driving by, etc.Water fountainsChangeable weather- rain, snow, wind, sun, clouds, etc…

PeopleAbility to update/modify appearanceHeight, skin tone, hair color, hair length, change of clothing, etc.

GUIInterface is easily updateableProvides statistics as you shop such as: money available, cost of item(s) or shopping cart, location, time, etc…Fully integrated with all our clients store merchandise, cost, stock, description of items and shipping informationAbility to store credit card information to the users profilePayment integration with PayPal, Chase Bank, and other automated services

Software

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Capital funding

Funding methods

Major Advertisers

SEC Regulation D 506 Offering

NASDAQ Qualified Initial Public Offering

Funding

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Use of ProceedsS

tart

up

cap

ital

As follows In Dollars $

Capital Funding 1,000,000Legal Fees for Misc. Corporate DocumentationPPM and SEC Reg D Associated Filing Cost 7,000Promotional Cost and Consulting Fees 5,000 Initial Office Set-up Expense 3,050( See detail below )Initial and On-going Software Development 400,000 ( Software Fund )

Amount Entered as Beginning Cash in the 350,000Cash Flow, Profit / Loss Projection

Total 766,500

Office Expense DetailComputers 3 ea. @ 500 2,250Telephones 3 ea. land line / cell 400Initial office supplies 400

Total 3,050

Total All 753,050

Working Capital Reserves 246,950

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In Thousands $ 000 To the Nearest $ 100 ( .1 K )

• Note: Static Display Ads Range from $ 20,000 to $ 50,000 per Month

• Computer Animated or Video Display Ads Range from $ 50,000 to $ 150,000 per Month and Up.

• The Current Global Internet Sales Market is Approximately $ 500 billion

• Enchanted Plaza's Extremely Conservative 4 Year Projected Sales is $ 21 million This Amounts to .4 1/1000's of 1 % of the Global Internet Market

4 Years Sales Forecast

4 Years Sales Forecast as Estimated and Projected

In Thousands $ 000 To the Nearest $ 100 ( .1 K )

Month 1 2 3 4 5 6 Total 7 8 9 10 11 12 Total

Year 1

Sales 0 0 0 20 30 45 95 67.5 101.2 151.8 212 297 320 1149.5 1,244

Year 2 Sales From Year 1 End to Year 2 End Up 395%

Sales 336 352.8 370.4 389 400.7 412.6 2261.5 421 429.3 439 446.7 455.5 464.7 2656.2 4,927

Year 3 Sales From Year 2 End to Year 3 End Up 129 %

Sales 474 483.4 494 503.8 514 527 2996.2 535 545.4 556.3 567.4 575.7 587.3 3367.1 6,363

Year 4 Sales From Year 3 End to Year 4 End Up 136 %

Sales 618 636.5 555.6 675.3 695.5 717.3 3898.2 738 760 783 806.4 830 855 4772.4 8,671

Note: Static Display Ads Range fron $ 20,000 to $ 50,000 per Month 4 Years Total 21205

Computer Animated or Vidio Display Ads Range from $ 50,000 to $ 150,000 per Month and Up.

The Current Global Internet Sales Market is Approximately $ 500 billion

Enchanted Plaza's Extremely Conservative 4 Year Projected Sales is $ 21 million This Amounts to .4 1/1000's of 1 % of the Global Internet Market

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Salaries (Years 1-2)

In Dollars to the Nearest $ 100.

Per Month Year 1 Total Year 2 Total

Salaries

Corporate Officers 10,700 10,700 10,700 10,700

Office & Assistants 1 2,000 3 6,000 5 10,000 7 14,000

12,700 16,700 20,700 24,700

Monthly Total x 6 x 6 x 6 x 6

76,200 100,200 176,400 124,200 148,200 272,400

Number of employees 4 6 8 10

Employer Tax Contrib 9,000 est 12 % 12,000 15,000 17,800

700 est 1.3 % 1,300 1,600 1,900

General Biz Insurance 200 200 200 200

Rent 400 400 1,000 1,000

100 100 200 200

Utilities 200 200 300 300

100 100 200 200

10,700 14,300 18,500 21,600

x 6 x 6 x 6 x 6

Total G / A 64,200 85,800 150,000 111,000 129,600 240,600

2,000 2,000 4,000 4,000

800 800 800 800

30,000 30,000 60,000 60,000

Selling Expence per Mo. 32,800 32,800 64,800 64,800

x 6 x 6 x 6 x 6

Total Selling Expense 196,800 196,800 393,600 388,800 388,800 777,600

720,000 1,290,600

Employer Contribution Taxes Federal, State, SSI, Medicare and UE Ins. Are added together and Estimated

Salaries Executive 4,000/ Mo Shawn Marie Lopez Pres, CEO Marketing and Sales Manager

4.000/ Mo Kyra Liebert CFO Chief Financial Officer

2,700/ Mo John Maler, VP, Chief Engineer, Software Development Manager and Sales Solicitation

Administrative 2,000 / Mo. Each Office Administrative Assistant, Customer Service, Software Assistant and Sales Associate

Telephone

Salaries ( Cost of Sales ), G&A and Selling Expense as Estimated and Projected

4 Semi-Annual Periods

1St 6 Mo / Mo 2nd 6 Mo 3rd 6 Mo 4 th 6 Mo

Cost of Sales per Month

Total Saleries

G & A Expense

Workmans Comp

Marketing

Monthly Total

Misc. Office Supplies

Cost of G/ A per Month

Monthly Total

Selling Expense

Air Travel

Car Rental

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P/L Cash Flow (Years 1-2)

Cash Flow - Profit / Loss as Projected Years 1 - 2

Summary In Thousands $ ( 000 )

Year 1 Cash Flow 1 2 3 4 5 6 7 8 9 10 11 12 Totals

Investment

Beginning Cash 350 321 292 263 254 255 271 301 365 480 655 915

Sales/Gross Income 0 0 0 20 30 45 67 101 152 212 297 320 1244 1244

Total Cash 350 321 292 283 284 300 338 402 517 692 952 1235

Total Cost per Month -29 -29 -29 -29 -29 -29 -37 -37 -37 -37 -37 -37 -396 -396

Ending Cash 321 292 263 254 255 271 301 365 480 655 915 1198 1198 [848]

Beginning Investment Cash [350]

Profit/Loss -29 -29 -29 -9 1 16 30 64 115 175 260 283 848 1198

Turn Arround Approx break Even

Year 2 Cash Flow 6 Months 6 Months Totals

Beginning Cash 1,198 3,183

Total Sales/Gross Income 2,261 2,656 4,917

Total Cash 3,459 5,839

Total Cost -276 -319 -595

Ending Cash 3,183 5,520

Profit/Loss 1,985 2,337 4,322

Accumulated P /L 1,985 4,322 4,322

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Salaries (Years 3-4)

In Dollars to the nearest $ 100.

Per Month Year 3 Total Year 4

Salaries 3rd 6 Mo

Corporate Officers 15,000 17,500 17,500 17,500

Office & Assistants 6 15,000 7 17,500 8 20,000 10 25,000

30,000 35,000 37,500 42,500

Monthly Total x 6 x 6 x 6 x 6

Total Salaries 180,000 210,000 390,000 225,000 255,000 480,000

Number of employees 9 10 11 13

Employer Tax Contrib 21,600 est 12 % 25,200 27,000 30,600

2,300 est 1.3 % 2,700 4,900 5,500

Insurance 600 600 600 600

Rent 1,000 1,000 1,000 1,000

400 400 500 500

Utilities 300 300 300 300

400 400 500 500

26,600 30,600 34,800 39,000

x 6 x 6 x 6 x 6

Total G / A 159,600 183,600 343,200 208,800 234,000 442,800

6,000 6,000 6,000 6,000

1,000 1,000 1,000 1,000

90,000 90,000 90,000 90,000

Selling Expense per Mo. 97,000 97,000 97,000 97,000

x 6 x 6 x 6 x 6

Total selling Expense 582,000 582,000 1,164,000 582,000 582,000 1,164,000

1,897,200 2,086,800

Salaries Executive 5,000 / Mo Shawn Marie Lopez Pres, and CEO

5,000 / Mo Kyra Liebert CFO Chief Financial Officer

5,000 / Mo. John Maler VP Chief Engineer

Administrative 2,500 / Mo. Each Office Administrative Assistant, Customer Service, Software Assistant and Sales Associate

Salaries ( Cost of Sales ), G&A and Selling Expense as Estimated and Projected

4 Semi-Annual Periods

1St 6 Mo 2nd 6 Mo 4 th 6 Mo

Monthly Total

Cost of Sales per Month

G & A Expense

Workmans Comp

Telephone

Misc. Office Supplies

Cost of G/ A per Month

Monthly Total

Selling Expense

Air Travel 4 trips /6 Mo.

Car Rental

Marketing

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P/L Cash Flow (Years 3-4)

Cash Flow - Profit / Loss as Projected Years 3 - 4Summary In Thousands $ ( 000 )

Year 3 Cash Flow 6 Months 6 Months Totals

Beginning Cash 5,520 8,098

Sales/Gross Income 2,996 3,367 6,363

Total Cash 8,516 11,465

Total Cost -418 -472 -890

Ending Cash 8,098 10,993

Ending Profit/Loss 2,578 2,895 5,473

Ending Accumulated P/L 2,578 5,473 5,473

Year 4 Cash Flow 6 Months 6 Months Totals

Beginning Cash 10,993 14,378

Sales/Gross Income 3,898 4,772 8,670

Total Cash 14,891 19,150

Total Cost -512 -567 -1,079

Ending Cash 14,378 18,584

Ending Profit/Loss 3,386 4,205 7,591

Ending Accumulated P/L 3,386 7,591 7,591

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Projected P/L

4 Years Proforma Profit / Loss as Projected

Page 12 Approx. Summary, In Thousands $ 000

Year 1 Year 2

Sales / Income 1,244 Sales / Income 4,927

Cost of Sales ( Sal ) -176 14.00% Cost of Sales ( Sal ) -272 5.50%

G / A -150 12.00% G / A -241 4.90%

Selling Expense -70 5.60% Selling Expense -82 1.60%

All Cost -396 31.60% All Cost -595 12.00%

Gross Profit 848 68.40% Gross Profit 4,332 88.00%

Total % 100% Total % 100%

Net Operating Net Operating

Pre Tax Profit/Loss 848 44.00% Pre Tax Profit/Loss 4,322 88.00%

On Sales of 1,244 Profit was 848 or 44.% On Sales of 4,917 Profit was 4,322 or 88.%

Year 3 Year 4

Sales / Income 6,363 Sales / Income 8,671

Cost of Sales ( Sal ) -390 6.20% Cost of Sales ( Sal ) -480 5.50%

G / A -343 5.40% G / A -443 4.80%

Selling Expense -156 2.40% Selling Expense -156 1.80%

All Cost -889 14.00% All Cost -1079 12.10%

Gross Profit 5,474 86.00% Gross Profit 7,592 87.90%

Total % 100% Total % 100%

Net Operating Net Operating

Pre Tax Profit/Loss 5,474 86.00% Pre Tax Profit/Loss 7,592 87.90%

On Sales of 6,363 Profit was 5,474 or 86 % On Sales of 8,671 Profit was 7,593 or 87.90 %

Note: See Conclusion Page 18 to Note Generally Inordinately High P&L

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A few American companies who’s primary income is from internet and marketing sales:

Facebook- $3,000,000,000 of which 80% was in internet marketing

Expedia, Inc.- $3,348,000,000- marketing and travel

Priceline- $3,072,240,000- marketing and travel

Groupon- $760,000,000- Retail referrals and marketing

Orbitz- $757,5000,000- Travel agent and marketing

Enchanted Plaza

Market Share

Competition and Market Share

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Amazon

Notable ecommerce Companies

Total Revenue 48,077,000 34,204,000 24,509,000

Cost of Revenue 37,288,000 26,561,000 18,978,000

Gross Profit 10,789,000 7,643,000 5,531,000

The standout winner in e-commerce continues to be Amazon. Amazon’s revenues rose 29 % in 2010 to $48.0 billion in 2011 and profits grew substantially as noted.Amazon’s main source of income was from a very broad, diversified line of direct and discounted customer retail sales, Internet marketing was estimated to be about 30 % or 14.4 billion. In billions

2011 2010 2009

ecommerce internet technology market research - E-Commerce and ...www.plunkettresearch.com/...internet.../industry-and-business-data

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Yahoo

ecommerce cont.’…

Period Ending Dec 25, 2011 Dec 31, 2010 Dec 31, 2009

Total Revenue 2,323,401 2,393,463 2,440,439

Cost of Revenue 957,467 961,778 1,021,230

Gross Profit 1,365,934 1,431,685 1,419,209

In thousands

Amount from marketing was unavailable

ecommerce internet technology market research - E-Commerce and ...www.plunkettresearch.com/...internet.../industry-and-business-data

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eBay, Inc.

(NASDAQ: EBAY)

Fiscal year is January-December. In billions

2008 2009 2010 2011

Sales/Revenue 8.54 B 8.73 B 9.15 B 11.68 B

Gross Income 6.08B 5.96 B 6.39 B 7.95 B

Net Income 1.78 B 2.39 B 1.8 B 3.2 B

ecommerce cont.”…

ecommerce internet technology market research - E-Commerce and ...www.plunkettresearch.com/...internet.../industry-and-business-data

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Google

Revenue Accounting ( summary )

In billions

Revenue: Year 2010 2011 2012 1st quarter

Gross Revenue 29.3 38. 10.6

Income from operations 10.4 11.7 3.4

Net Income 8.5 9.7 2.9

marketing Revenue inclusive 28. 36. 10.

Internet Sales Revenue was 28/29 = 96.6 % of gross revenue

ecommerce cont.’…

ecommerce internet technology market research - E-Commerce and ...www.plunkettresearch.com/...internet.../industry-and-business-data

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Google cont.’…The Top 10 Industries That Spent Big On Google AdWords In 2011

Finance & Insurance – $4.0 Billion (example keywords in this industry include: “self employed health insurance”, “cheap car insurance”, “credit cards for bad credit”)Retailers & General Merchandise – $2.8 Billion (example keywords in this industry include “zumba dance dvd”, “proform treadmill”, “weber grill accessories”)Travel & Tourism – $2.4 Billion (e.g. “New York hotels”, “plane tickets”, “rental car deals”)Jobs & Education – $2.2 Billion (e.g. “accredited online college degrees”, “online certificate programs”, “unemployment benefits”)Home & Garden— $2.1 Billion (e.g. “replacement windows cost”, “appliance repair”, “cabinet refacing”)Computer & Consumer Electronics – $2.0 Billion (“ink cartridges discount”, “pc memory”, “online video conferencing software”)Vehicles – $2.0 Billion (e.g. “cheap hybrid cars”, “certified used cars”, “Bridgestone tires”)Internet & Telecommunications – $1.7 Billion (“pre paid cell phones”, “domain registration”, “cable internet providers”) ……Business & Industrial – $1.6 Billion (“custom business cards”, “cheap office supplies”, “foam packing”)Occasions & Gifts – $1.2 Billion ("funeral flowers arrangements", "flower delivery", "wedding gift registry")

marketing revenues for Google from these 10 industries accounted for 60% of Google’s 2011 revenues. The remaining balance was in advertiser revenues from other industries than those noted above(Just 4% of Google’s revenues came from non-marketing-related sources.)

ecommerce cont.’…

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Global Internet Sales 2006

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Global Market

Overall Global Internet Traffic is growing at 29 % per year

2010 2013 ( Rounded off to the even billion)• U.S: 166, 235, 12.4%• Europe: 195. 283. 13.2%• Asia: 1 56, 323, 27.5%• Rest of world: 56, 128, 29.7%• Global: 473, 969, 19.4%

www.internetretailer.com/.../global-e-commerce-sales-head-1-trillion-...

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China’s e-commerce market is growing 130% a year, a U.K. e-retail trade group says.Topics: Aad Weening, Asia, Brazil, China, e-commerce spending, europe400, European Multi-channel and Online Trade Association, France, IMRG, industry statistics, international e-commerce, international marketing, Israel, Italy, Japan, Latin America, Mexico, Middle East, Spain, UAE, United Kingdom

Global eCommerce

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Conclusion

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Company Contacts

ShawnMarie Lopez- President & CEO5031 27th Ave NERio Rancho, NM 87144(505) 903-1706(505) 752-9201Email: [email protected]

John Marler, Vice President3857 Montgomery Blvd. NEAlbuquerque, NM 87109(505) 610-7421

Kyra A. Liebert, Chief Financial Officer1921 Verbena Drive NERio Rancho, NM 87144(505) 450-2724Email: [email protected]

Please Note: This business plan is not an offer or solicitation to invest, buy or sell any security at this time. If the intentions of the company shall change in this regard at some future time, the company will in accordance with Federal SEC, State and local laws/rules, file appropriate registration statements or exemptions therefrom.