TSC Global, LLC

TSC Global, LLC

Cellular Lightweight Concrete Block Plant Haiti

TSC Global LLC 2 TSC Global LLC 3

Business Plan Cellular Lightweight Concrete Block Plant - Haiti

Confidentiality Agreement

By your acceptance of TSC Global’s (The Company) invitation to review this business plan, it is understood and agreed to that the Company may provide certain information that is and must be kept confidential. To ensure the protection of such information, and to preserve any confidentiality necessary under patent and/or trade secret laws, it is agreed that:

1. The Confidential Information to be disclosed can be described as and includes:

Invention description(s), technical and business information relating to proprietary ideas and inventions, ideas, patentable ideas, trade secrets, drawings and/or illustrations, patent searches, existing and/or contemplated products and services, research and development, production, costs, profit and margin information, finances and financial projections, customers, clients, marketing, and current or future business plans and models, regardless of whether such information is designated as “Confidential Information” at the time of its disclosure.

2. The Recipient agrees not to disclose the confidential information obtained from the discloser to anyone unless required to do so by law.

3. This Agreement states the entire agreement between the parties concerning the disclosure of Confidential Information. Any addition or modification to this Agreement must be made in writing and signed by the parties.

If you do not agree to this Confidentiality Agreement, please return your copy to TSC Global at: 1205 Osage St., Denver, CO 80112. If you are holding an electronic copy of this business plan, please delete from your computer.


Contact Information

Stephen L Riley, PresidentOffice: (720) 549-9303 X 100

Mobile: (720) 290-1537Email: [email protected]

1205 Osage St.Denver, CO 80204

Web: www.tscglobal.org

Table of Contents

EXECuTIvE SuMMARy 4

FInAnCIAL HIGHLIGHTS 6

TAbLE OF COnTEnTS 8

GEOGRAPHIC LOCATIOn 10

CLC DESCRIPTIOn 12

MATERIAL PROPERTIES OF CELLuLAR LIGHTWEIGHT COnCRETE 14

OTHER ADvAnTAGES OF CELLuLAR LIGHTWEIGHT COnCRETE 15

APPLICATIOnS FOR CELLuLAR LIGHTWEIGHT COnCRETE PRODuCTS 16

TSC GLObAL APPLICATIOnS 18

SWOT AnALySIS 23

KEy PERSOnnEL 24

KEy ADvISORS 25

TSC GLObAL COMMITMEnTS TO DATE 26

POTEnTIAL PARTnERS 26

POLITICAL, SOCIAL & ECOnOMIC COnTEXTS 29

ADvAnTAGES OF DOInG buSInESS In HAITI 39

MARKETInG 41

InvESTMEnT InCEnTIvES 56

COMPETITIOn 58

PRICInG 62

CuSTOMERS 64

LEGAL EnvIROnMEnT 66

EquIPMEnT LIST 80

FInAnCIAL PROjECTIOnS 82

OPERATInG EXPEnSES 84

PAyROLL AnD HEAD COunT 86

PROFIT & LOSS PROjECTIOn 88

CASH FLOW CHART 90

APPEnDIX I: COMPETITOR AnALySIS 94



TSC Global LLC is a cellular lightweight concrete (CLC) construction materials manufacturer and a builder performing “core and shell”* construction projects in the developing world. We have chosen to establish a CLC production plant in Haiti because of its market potential, a shortage of quality building materials, the lack of competition in our market niche, our intimate knowledge of the construction sector there and the anticipated construction boom as the country rebuilds from the disastrous january 2010 earthquake.

In our two years of work in Haiti since the earthquake, we experienced widespread shortages of building materials and the absence of affordable alternatives to regular weight concrete and concrete masonry units (CMu), commonly known as cinder blocks. Since reinforced concrete (RCC) and CMu’s are used in over 95% of construction in Haiti, and these materials are widely recognized as being the cause of the death and destruction experienced in the recent earthquake, we are convinced there is an unexploited market for safer, stronger lightweight concrete products, and that they can be sold at premium prices.

Our patent pending cellular lightweight concrete products are derived from proven technologies used for decades in the united States, Europe and Asia but never introduced in Haiti. buildings constructed with TSC Global lightweight concrete are safer and more comfortable to live in because of their strength and resilience in wind and seismic events and their advanced thermal properties. yet they cost about the same per square meter of space as buildings made with either concrete or cinder blocks.

This business plan describes a manufacturing facility in Haiti that will produce cellular lightweight concrete products on a scale sufficient to meet initial projected demand from the housing and light commercial construction sectors. Our product line consists of

lightweight concrete blocks and pre-cast panels manufactured in a simple factory for sale to contractors working in the reconstruction of Haiti. We will also sell the high strength grout and stucco required for use in lightweight concrete construction.

Although Haiti is a poor country and is experiencing severe economic, social and political challenges because of the 2010 earthquake, it has a robust building sector, an improving economy, better governance, currency stability, and has received billions of dollars in foreign aid aimed primarily at the reconstruction effort. The Government of Haiti (GoH) has a pro-business agenda, well established protections for foreign investors, and has instituted incentives to attract even more foreign investment including a 15 year tax holiday for new manufacturing companies. After two years of uneven progress since the earthquake, there is broad agreement among business people in Haiti that the opportunities for private investment and small business are better than at any time in the last 50 years.

TSC Global is managed by a team of seasoned entrepreneurs and construction professionals with more than 100 years of combined experience in international development in over 50 countries. The company is supported by Haitian business partners and some of the most experienced engineers and design professionals in the united States.

Incorporated in 2010, TSC Global is a for-profit limited liability company headquartered in Denver, Colorado, uSA.

Executive Summary

* Central building elements such as foundation, walls and roof


Business Plan Cellular Lightweight Concrete Block Plant - HaitiFinancial Highlights

The investment requested is $720,000.

Summary of financial projections:

• 45% of investor capital is secured by plant and equipment

• break-even in month 4

• Projected Rates of Return:

• $900,000 cash out in Month 24 - 12% or,

• $1,200,000 in 24 monthly installments in years 2 and 3 - 24% or,

• $2,500,000 cash out in Month 60 - 29%

• Gross Margin - 48%

• net Profit - 29%

• Operating Expense to Gross Sales - 19%

• Annual Sales - $1.8 Million at peak production

• number of Employees

• Haiti - 13

• uSA- 3

• value of Capital Equipment - $324,000

• Average Inventory - 30 days production

The principals of the company are willing to offer equity in the production plant as part of a comprehensive return on investment scenario.


President, TSC Global and Executive Manager - Haiti

Stephen Riley will assume the duties of Executive Manager for TSC Global business operations at our Haiti production facility. These duties include oversight of all business and operation disciplines including marketing and sales; plant operations and production; and accounting reconciliations. The Executive v.P. Marketing, Executive v.P. Of Construction will report to the Executive Manager. Stephen has over 30 years experience in management positions for fortune 500 companies and 6 years experience working in emerging nations. Stephen has acted as Partner and Executive at TSC Global for 3 years.

Executive Vice President of Marketing

brad Wells will assume the duties of Executive v.P. Of Marketing for TSC Global’s business operations in Haiti. These duties will include management of all marketing and sales efforts and sales staff in Haiti. brad has acted as Partner and Executive Director in TSC Global for 3 years and has been instrumental in the development of TSC Global HyPar roofs worldwide. brad has successfully owned and operated ‘The Innovative Alliance’ book distributorship.

Executive Vice President of Construction

Randal Parsley will assume the duties of Executive v.P. Of Construction regarding the Company’s Haiti production plant. These duties will include oversight and management of plant operations, quality control and training. Randal has been a Partner and Executive in TSC Global for one year and has been instrumental in the development of the Cellular Lightweight Concrete products and Thin-Shell Concrete products manufactured by TSC Global. Randal has 43 years experience in Construction and Construction management as well as 20 years as a chief estimator (registered under ASPE).

Quality Control Manager and Inspector

bob Cvancara will assume the duties of Instructor Technician. The primary duties for this role include teaching, inspecting, and enforcing quality initiatives. Secondary duties include laboratory technical work focused on material science, performance and technical writing regarding TSC Global products. bob has worked in over 50 developing nations and has extensive experience in technology transfer, logistic management, design and management of international projects.

Project partner Didier GardereOwner of Truxton SA, a major contractor in Haiti with a portfolio that includes construction of the Port-au-Prince to Mirabaleis highway. He will contribute his Port-au-Prince facility site, equipment, access to his network of business resources, import assistance and operational expertise. Truxton will provide an uninterrupted supply of high-quality sand and aggregates at below market prices from his on-site crushing operation, precluding delivery charges, and cement at lowest bulk rates.

Project Partner Roland ZennyAnother Haitian partner living in the city of jacmel, one of TSC Global’s target markets. Mr. Zenny is a uS educated lawyer and MbA, President of the jacmel Chamber of Commerce, owner of four small businesses in the city of jacmel and influential in local and national politics.

Dr. George nez MIT educated urban planner, post-disaster reconstruction expert, and inventor of one of our key products, Thin Shell Composite HyPar roofs.

Steve BrooksCO AIA, nCARb, LEED principal with OZ Architecture, Denver.

From Engineering Ministries International (eMi)

Craig Hoffman Acting CEO eMi. Civil/Structural engineer.

Sam Rubenzer Structural engineer, specialty in finite element analysis. Richard C. Pierce Sructural design, concrete and thin shell cement

Sharon Kim architect

Brian Klauk Civil/structural engineer

Doug Schmucker Phd Stanford, structural engineer

Seth Carlton Graduate Student, university of Oklahoma

R&D Partner Kenneth Driscoll, Owner of Micro Metals Inc., will provide consulting and assistance with engineering and manufacturing of gang forms for CLC block mass production.

R&D Partner Dave LewisPresident of S.A. Miro, is providing engineering services regarding CLC structural performance capacities.

university of Colorado Engineering Department and university of Oklahoma Fears Structural Engineering Lab Contributing reduced fees for CLC materials testing services.

R&D PartnerMerline van DykePresident of van Dyke Surveying & Engineering, Denveris providing CLC structural engineering services

Key Personnel Key Advisors

TSC Global LLC 12

The Company is actively seeking other partnerships and investors to fund our business plan. A partial list of potential corporate and institutional funders is shown below:

• Fonds Development Industriel (FDI) - Haiti based• Clinton-bush Haiti Fund• World Bank• Inter-American Development bank (IDb)• Overseas Private Investment Corporation (OPIC)• Mission of Hope - Haiti based nGO• Fonds d’Assistance Economique Et Sociale (FAES) - Haiti based• Environmental Technologies Solutions (ETS)• Lemelson Foundation• Skoll Foundation• uSAID - In February 2012, TSC Global cleared stage one review

for a uSAID sponsored Development Innovation venture (DIv) grant that could provide a substantial portion of our funding need. However, the Company does not expect to receive the DIv award as these grants are highly competitive and attract a multitude of qualified applicants. A previous DIv grant application submitted in 2011 was declined.

TSC Global operates out of an office space, workshop and outdoor workspace donated by brad Wells at his Innovative Alliance book warehouse. TSC Global’s in-kind contributions over the past 3 years include donated time, R&D costs, demo builds and strategic travel to locations worldwide, with 18 trips to Haiti alone. The combined in-kind contributions by TSC Global partners is over $100,000. The Company has also received funding in excess of $50,000 from “friends and family”. Randal Parsley has spent 2 years developing TSC Global’s CLC interlocking mortar-less blocks, panels and cast-in-place forming techniques. He has donated to TSC Global all CLC intellectual property rights and equipment purchased.

TSC Global Commitments To Date

Potential Partners


TSC Global’s Competitive Disadvantages

TSC Global needs additional capital to fund business operations, continuing R&D and to build our first manufacturing facility in Haiti. CLC building products are not well known in Haiti so there may be resistance to approving their use especially with risk adverse customers in the nGO community, a primary target market. We face entrenched local competitors selling building products that are in common use today.

TSC Global’s Competitive Advantages

TSC Global is producing products (patent pending) that are in high demand from customers with the ability to pay. We are competing with inferior building materials and construction methods that are widely known to have contributed to the death and destruction experienced in the 2010 earthquake. Our CLC products have a proven record in the uS, Europe and Asia, yet are new to Haiti, giving us first to market advantage. TSC Global has wide name recognition in the target market, trusted Haitian partners, a strong network of potential customers and a prime manufacturing location offered at below market rates. TSC Global is creating multiple streams of income from manufacturing, contracting, sale of construction materials and licensing agreements.

TSC Global’s Market Niche

Manufacturing CLC products for wholesale and retail and construction with CLC building materials. Our products are as affordable as CMus in a final wall assembly but have proven advantages that are in demand from our customers: strength of materials, resistance to earthquakes, thermal efficiency, ease of production, low cost of labor, and the aesthetic of the finished assembly.

Our customers are motivated to find an affordable alternative to CMu because it is widely known as an inferior building material unlikely to withstand future earthquakes.

TSC Global will deliver services that are not commonly offered by building materials suppliers in Haiti: adequate inventory, timely delivery, high quality control standards, customer service, web presence, and acceptance of credit cards.


Strengths Weaknesses1. There is a gap in the Haitian building material marketplace for affordable, high quality wall products. Demand for our product is very high, especially from customers with the ability to pay, including nGOs, developers and the Haitian upper class.

1. TSCG currently has inadequate financial resources to capitalize the business.

2. We have the advantage of owning rights to a product that is not widely used in Haiti but is widely accepted and used in other places in the world. It is a proven technology that has never been introduced to the Haitian building community. We will have a patent pending barrier against competition which is important to investors.

2. TSCG does not have an established customer base.

3. We will have a manufacturing facility and can quickly launch a construction operation if awarded contracts to build homes or commercial structures. until an established market for CLC building materials emerges, we will be the only contractor in Haiti able to build with CLC.

3. There may be resistance to new technologies like CLC being used for structural building elements that are crucial to life safety.

4. We have the advantage of a central distribution location with easy access to the greater Port-au-Prince market. We also have on-site access to raw materials making our CLC products less expensive to produce, generating a higher profit margin.

4. We will be competing against entrenched CMu manufacturing community with deep connections to decision makers in the GoH.

Strengths Weaknesses5. Our production facility will be more efficient than competitors. We will be able to fill orders that our competitors cannot. We will be a reliable source of building materials in an environment where shortages are the norm.

5. Some customers do not assess cost with reference to long term benefits. They are only concerned with construction cost.

6. We may be able to price the product with higher margins because of its inherent benefits and advantages over CMu.

6. Plant and equipment are subject to natural disasters like flood and earthquake. Also exposed to vandalism and theft.

7. We operate our business according to uSA best practices which gives us an advantage of less sophisticated competitors in Haiti. We will will offer delivery and accept credit cards.

7. Plant is in Haiti, headquarters is in uS which requires frequent travel by TSCG management.

8. Our internet site gives us an edge in advertising and communications with clients. We can receive bid requests on-line making it easier for our customers to do business with us. Traffic moves very slowly in Haiti so having a means of doing business on-line is a big advantage over other block producers.

8. Recruiting qualified, dependable Haitian workers may be difficult.

9. Excellent network of prospects and business allies in country. Access to locations, expertise, capital, customers.

9. TSCG overhead is higher than most Haitian competitors because of differences in salary and benefit costs.

10. value added offerings to customers that create additional sources of revenue and profit: sale of proprietary grouts and renders; licensing fees; training classes; ornamental cast concrete items; delivery.

10. Products could replicated, our patents may not be enforceable in Haiti.

11. This is TSCG’s first block plant. We do not have a portfolio of large scale competed projects.

12. We need to expand our board of Directors.

Opportunities To Leverage Strengths Threats - Minimize Weaknesses1. We must get our product to the market as quickly as possible before a competitor does. 2012 is the most important year for the economic recovery of Haiti since the quake. Money is finally flowing for infrastructure, commercial buildings, schools and housing projects.

1. Find investors quickly. Keep expenses low, especially at uS headquarters. Offer modest starting salaries to partners and uS staff. Subcontract business services like accounting and web site development.

2. Get our patent filed now. Push R&D as quickly as we can.

2. Send inventory of CLC blocks to Haiti before plant is operational. Conduct hands-on workshops for prospects.

3. use existing network of business contacts to secure our location and raw materials.

3. Establish a Haitian corporation. File for tax preferences.

4. begin leveraging our existing network of nGOs and other business contacts.

4. buy property & liability insurance for domestic office and Haiti block plant.

5. TSCG already has “proof of concept” and initial R&D. Funding will enable us to launch the business quickly and make an immediate impact on the market.

5. R&D will be ongoing helping us maintain our competitive edge in the marketplace.

6. Compelling advantages of our products mean long term strengthening of our brand in Haiti.

7. Demand for improved building technologies is hard wired into the Haiti market. We are delivering products that fulfill specific, widely recognized needs.

8. TSCG is willing to offer equity stake to substantial investors.

9. Our financial projections show break-even in less than six months with investor pay-outs beginning as early as 24 months.

10. Cash flows are sufficient to replicate a new block plant every two years or double production within 18 months.

11. The total addressable market in Haiti will support at least six times our initial capacity.

SWOT AnalysisSWOT Analysis

Cement OptionalFly Ash

Batch

Sand

WaterFoaming

Agent AirWater

Foam Generator

Concrete Mixer

Blocks Panels In-Situ


Cellular Lightweight Concrete (CLC) is also referred to as ‘foamed concrete’ and is a mixture of Portland cement, sand, water and foam. Fibers and other admixtures can easily enhance the structural properties and workability of CLC. The foam used in CLC is a non-chemical liquid emulsion agent that, when pressurized and subsequently dispersed into the ambient environment, expands to produce a foam – similar in appearance to shaving cream. The small bubbles that comprise the foam have the resiliance to withstand the mixing process when cement and sand are added to the foam to produce concrete. The foam bubbles, weighing only 2.5 pounds per cubic foot, substitute for the large aggregate intrinsic to regular weight concrete and thereby reduces the weight of the concrete product. After the concrete has achieved a solid state, the small preformed bubbles dissipate during the subsequent curing process.

CLC in the plastic state has very low viscosity and can be easily poured or pumped into forms or molds. The low viscosity of the concrete slurry allows the material to flow into very fine details of casting molds so it can be used in such applications as statuary production or other ornamental casting works. The evenly dispersed

micro bubbles in the cement slurry act like tiny ball bearings allowing the concrete to flow freely without vibrators for consolidation. CLC is produced with smaller versions of the equipment used to make regular weight concrete. For example, rather than using large horsepower pumping equipment and heavy, large diameter hoses, pumping CLC is performed easily with light duty peristaltic pumps and hoses less than 3 inches in diameter. The light weight and ease of pouring CLC means production requires less expensive equipment, a smaller manufacturing space, less wear and tear on machinery and forms, and reduced labor consumption - all of which reduce the cost of manufacture and increase profit margins.

Cellular Lightweight Concrete densities of 15 to 35 pounds per cubic foot can be used for insulating fill in wall voids, various geotechnical fill applications or ornamental castings. CLC densities of 40 to 70 pounds per cubic foot can be used to produce blocks, bricks, precast ornamental shapes, wall panels and other non-structural elements. CLC densities of 75 to 120 pounds per cubic foot can be used for structural building components including structural walls and structural elevated slabs.

CLC Description


•Mold Resistant •Contains no nutrients for mold growth.

•Insect Resistant •Insects will not attack cellular lightweight concrete.

•Sound Insulator

•Performs better than regular weight concrete in sound transmission. Interior spaces are quieter.

•Cutting Ease•Cellular lightweight concrete can be cut with a carpenter’s handsaw making the material extremely easy to craft.

•Fastening Ease

•nails and screws can be driven into CLC creating tight connections for forms and building components such as door and window frames.

•Placing Ease

•Because of its light weight, equipment and human resources are dramatically reduced when handling CLC. Laborers can assemble more work in less time creating savings in labor cost and shortening construction time.

•Less Skill Required

•Our interlocking, mortarless blocks can be assembled using unskilled workers reducing cost of material and labor compared to traditional masonry construction.

Shear ASTM C 469-94

6%-10%

Tensile ASTM C 496-90

25%

Modulus of Rupture

ASTM C 496-90

.1%

Compressive Strength - ASTM C 39-93a

Density in Pounds per Cubic Foot

Pounds per Square Inch

12 10025 30032 50044 55050 65055 72562 75070 120075 144088 1750

Water Absorption - ASTM C 624: Cellular Lightweight Concrete absorbs much less moisture than regular weight concrete. In regular weight concrete, water invades the material through spaces in the mortar and rock aggregate. Since CLC has no rock aggregate, it absorbs about 35% less water than regular weight concrete. Less water absorption means less maintenance, more durability and better resistance to water intrusion and flooding.

Fire Protection, ACI 532.3R: Cellular Lightweight Concrete has a fire rating of 1 hour per inch of thickness. This high resistance to heat and flame allows CLC to be used as fire separations in multiple unit housing and industrial settings.

Thermal Performance - ACI 523.3R: Cellular Lightweight Concrete ranges from .097 to .56 (W/Mk) compared to 2.1 rating for regular weight concrete (CMu included). A CMu wall would require 5 to 9 times the wall thickness to compete with the thermal performance of Cellular Lightweight Concrete.

Other Properties% Compressive Strength

Material Properties of Cellular Lightweight Concrete Other Advantages of Cellular Lightweight Concrete

Project: Penny Bay, Lantau Island, retaining wallsPrecast application, formliner: rough cast and stone pattern



Cellular Lightweight Concrete is currently being used all over the world for a wide range of applications. The u.S. Interstate Highway system, as an example, utilizes CLC as a low weight, high strength, stable fill material under roadways and for bridge abutment fill requirements. Many abandoned mines in the u.S. and around the world are filled with CLC. In these geotechnical applications the CLC density is very low, from 15 pounds per cubic foot to 30 pounds per cubic foot. CLC replaces the soil with a much lighter material that is stronger in compressive and shear strength. CLC absorbs the kinetic energy loads (from

roads and bridges) and acts as a shock absorber. The same is true when handling seismic loads in both horizontal and vertical applications.

CLC in the 25 to 35 pounds per cubic foot range is typically utilized to produce architectural ornamental shapes, statues, architectural precast products, sub-floor topping slabs and block insulation fill.

CLC in the 40 to 70 pounds per cubic foot range is typically used to produce lightweight blocks and panels for construction of exterior and interior vertical walls. These block and panel applications are usually accompanied by regular weight reinforced concrete components to complete a total wall system.

CLC in the 75 to 120 pounds per cubic foot range is typically utilized for cast in place steel reinforced CLC in vertical wall and elevated suspended floor construction. This weight class of CLC is often used to produce precast cladding panels (high-rise building skin cladding), cast in place structural walls and floors, structural blocks and other structural or architectural building components.

Applications for Cellular Lightweight Concrete Products



The capitalization plan incorporated within the body of this business plan will accommodate a wide range of potential products serving the construction industry in Haiti. We have focused initially on two products for the Haiti market - CLC blocks and CLC pre-cast panels. both products can be mass produced and are improvements over basic commodities that are in high demand, and short supply, in our target market. The skills required to use our products are quickly taught and mastered. The blocks and panels described below will serve their intended purpose for 100 years plus, with very little maintenance. The business of producing these superior products is profitable ,and thus sustainable, as shown in the financial forecasting section of the business plan.

Blocks

Our CLC blocks measure 6” in thickness, 6” in height and 12” in length. blocks are

produced by pouring CLC into gang molds and are neither pressed nor extruded. Each block weighs only 9.5 pounds and has two 2-1/2” holes that receive infill grout and reinforcing steel when incorporated into a wall assembly. Center and end holes serve as a fire stop when filled with grout or mineral wool. The blocks themselves are not the primary structural element. The block cells, when filled with grout, form vertical reinforced columns that carry the vertical loads. A concrete bond beam is cast at the top of the wall transferring all gravity loads to the vertical columns and into the foundation below. vertical reinforcing steel in the columns is anchored into the foundation and the bond beam creating a solid wall that performs well in wind, flood and seismic events.

Blocks are installed without mortar, which eliminates the need for mason tenders and masons to mix, carry and apply mortar. The blocks are interlocking in two

opposing directions made possible by an integral double keyway. The mortarless and interlocking features make the erection process extremely fast and efficient. unskilled labor can serve as the primary workforce for wall assembly - an important benefit when working in developing nations.

CLC blocks require a thin render (stucco) coating on the interior and exterior surfaces that protects the wall and provides horizontal reinforcement. Traditional CMu construction in Haiti is coated in the same manner, but with much thicker render because of CMu’s irregular surface.

Pre-cast Panels

Our standard panels measure 5-1/2” in thickness, 16” in width and 7’-6” in height. Each side of the panel has a void in a half round shape with protruding horizontal reinforcing. When two panels are butted together vertically in a wall configuration, the two half round voids form a round vertical space. Reinforcing steel is inserted in the space, then filled with high-performance grout creating a reinforced concrete column. A 6” wide by 6” high reinforced concrete

bond beam is formed at the top of the wall completing the wall system.

These panels are comprised of 80 pound per cubic foot CLC reinforced with welded wire mesh. The panels are 10 square feet in dimension and weigh 360 pounds. Three workers with a hand truck can maneuver panels into place, aligning then grouting the vertical spaces. Form boards are nailed into the panel, reinforcing steel is placed, then regular weight concrete is poured creating the bond beam and completing the wall assembly.

TSC Global Applications

Toussaint Louverture International Airport


Our target markets for CLC products are the Port-au-Prince metropolitan area (Pop. 3.5 Million) and the city of jacmel (Pop. 250,000) which is located on Haiti’s southern coast.

A site in Port-au-Prince near Toussaint Louverture (PAP) International airport will house our first block plant. In the heart of the city’s industrial district, the location is accessible to vehicle traffic, including heavy trucks, and near major arterial roads. A second plant will be considered for the city of jacmel as resources and sales permit. In the interim, jacmel will be served from the Port-au-Prince location.

The country of Haiti is an island nation located in the Caribbean just east of Cuba. The Dominican Republic and Haiti share the island of Hispaniola - the western 1/3 belonging to Haiti and the eastern 2/3 belonging to the Dominican Republic.

Haiti is about the size of the State of Maryland, approximately 10,714 square miles (27,750 square kilometers). Three sub-islands comprise the country’s offshore territories: Ile de la Gonave, Ile de la Tortue, and Ile a vaches.

The population of Haiti is approximately 10 million (2011). Port-au-Prince, the largest city in the country, is located on the western coast of the island. Haiti’s terrain is a mix of rugged mountains inland with small coastal plains and steep river valleys. The climate is warm with periods of dry weather mixed with heavy seasonal rains and high humidity in many coastal areas. As a Caribbean nation, Haiti is subject to annual Atlantic Ocean born hurricanes and tropical storms.

Although Haitian history dating from the early 1700’s records several large destructive earthquakes, geologic faults underlying the island were mostly inactive from the mid-eighteenth century until a 7.0 magnitude earthquake struck the southwestern region of the country on january 12, 2010 causing massive damage and loss of life.

Geographic Location


Even before the earthquake, Haiti was one of the poorest nations on earth, certainly the poorest country in the western hemisphere. 75% of Haiti’s citizens live on less than $2/day - a figure that has not changed in real dollar terms for as far back as anyone has kept records. Per capita GDP is less than $646 and Haiti ranks 146th out of 177 countries in the un’s Human Development Index which measures a mix of economic, educational and health related criteria.

Decades of corruption, political instability and a succession of repressive and inept governments have stymied economic growth while helping concentrate political and economic power in the hands of an elite 1% of the population. According to a recent uS Department of State assessment, Haiti has long suffered from a toxic mix of “...inappropriate economic policies, political instability, a shortage of arable land, environmental degradation, continued reliance on traditional technologies, under-capitalization, lack of public investment in human resources, migration of large portions of the skilled population, a weak savings rate, and the lack of a functioning judicial system”.

The country’s political and social turbulence has resulted in a chronic

lack of skilled labor and widespread unemployment estimated at 80%.

The good news is, the international community, especially the united States through uSAID, is firmly committed to, not only earthquake relief and reconstruction, but to dealing with these structural political, social and economic problems. The united States is Haiti’s strongest international supporter. In cooperation with the GoH, uSAID has identified four focus areas or “pillars” around which to organize its efforts: Infrastructure and Energy; Food and Economic Security; Health and Basic Services; Governance and Rule of Law. Two of these pillars, Infrastructure - Energy and Health - basic Services, provide opportunities for the Company in its core competencies: concrete building materials manufacturing and installation (CLC blocks and panels) and concrete construction (CLC and regular weight reinforced concrete - cast-in-place).

Infrastructure and Energy

One of the most serious impediments to improving the circumstances of the average Haitian is the lack of infrastructure. What was already an infrastructure crisis before the earthquake, was made exponentially worse after january 2010. The country’s

Political, Social & Economic Contexts



roads, bridges, water, sanitation, telecommunication, and power grid are in a shambles. Only about half of the population has access to clean water and fewer than 20% have use of improved sanitation (toilets or latrines). Roads were heavily damaged in the earthquake and half of the ruble from collapsed buildings has yet to be removed. Much of it lines city sidewalks and chokes traffic flow in the already narrow streets. There is little or no street maintenance anywhere in the country making the road network a hindrance to commerce. Travel in the environs of the capital city of Port-au-Prince is so sluggish it sometimes takes hours to travel only a few miles. The international airport is overloaded and in need of repair and expansion. The need for infrastructure improvements is profound and the international community is investing hundreds of millions of dollars in capital construction projects throughout the country.

Cities in every developing country are experiencing a population explosion. Haiti is not immune from this trend with most of its population of 10 million concentrated in a few large cities like Port-au-Prince and Cap Haitien. The earthquake only exacerbated the situation as thousands of people moved to the capital of Port-au-Prince in search of relief aid. Although nearly a

million people have returned to their home districts, over 500,000 people still live in tent shanty towns in the capital city. One of the country’s most pressing social issues is to draw people away from the few urban centers back to the provinces. In response to this need, there are now major initiatives, sponsored by uSAID and other organizations, to build infrastructure and economic development zones away from Port-au-Prince.

Haiti’s ports are all in poor condition due to chronic neglect and earthquake damage. Lack of capacity, inefficient operations, dilapidated equipment and corruption create a chaotic environment in Haiti’s three main ports: Port-au-Prince, Cap Haitian, and St. Marc. Haiti’s port fees are among the highest in the Caribbean making shipping to the country relatively expensive. Inbound shipments are often delayed creating a bottleneck for relief aid as well as equipment, machinery and other goods essential to business operations. Improving Haiti’s ports is a high priority of the GoH and the international donor community.

The telecommunications and power infrastructure of Haiti are two sectors that have seen some improvement in the last ten years. The GoH privatized the telephone company



in 2010 selling operations to viettel, a vietnamese telecom company, and creating a new local phone company, natcom. There are three mobile phone companies operating in Haiti which have made cellular phone and internet service available to millions of new customers.

Haiti’s demand for electric power

far exceeds its production capacity. Presently only about 15% of the country has access to electricity and even that is only available sporadically throughout the day. The Martelly administration recently announced a bold plan to use public/private partnerships to bring electric power to the provinces and to electrify the entire country within 20 years. In 2011 a new 30 MW power

plant was completed near Port-au-Prince boosting electrical production for the city by 40%. Another power plant project is nearing launch and will generate an additional 30 MW of electrical power fueled by lignite mined in the interior highlands. One of the Company’s partners in Haiti is the firm recently awarded the site development contract for this mine. The project’s

scope includes housing construction for miners and the hundreds of families being displaced by the lignite mine operation.

Health Care and Education

Health care in Haiti is abysmal. Per capita spending on health care is the lowest in the western hemisphere.



It is impossible to adequately describe the impact of the 2010 earthquake on the people, businesses and institutions of Haiti. It is one of the defining events for this island nation, second only to the achievement of its independence in 1804 when a revolt led by the island’s slaves defeated the French army and established Haiti as the second oldest republic in the western hemisphere, after the united States. After more than two years, the country is only now beginning to recover. The scale of the devastation overwhelmed the ability of the Government of Haiti (GoH) and aid organizations to provide an adequate response. The 2010 earthquake was the biggest natural disaster to strike the western hemisphere in at least 200 years.

• 316,000 people dead (GoH estimate)• 300,572 people injured• 1,300 camps or “spontaneous settlements”• 1.5 million people displaced• 550,000 people still in settlement camps as of December 2011• 604,000 people left Port-au-Prince and the capital region• 250,000 houses destroyed or badly damaged• 30,000 commercial buildings destroyed or badly damaged• 80 per cent of Port-au-Prince schools destroyed or damaged• 60 per cent of hospitals in the affected region destroyed or

damaged• 10 million cubic meters of rubble created, half of which is still

waiting to be removed

Health care is either unavailable or of poor quality for the vast majority of Haitians. Life expectancy is 62 years for women and 59 for men. One in eight children die before the age of five. Much of the population suffers from waterborne diseases, like diarrhea and typhoid, caused by polluted drinking water and lack of sanitation infrastructure. In 2011 the country suffered from a cholera epidemic affecting over a quarter of a million people, killing over 5,000, which swept through some rural villages and the displaced population living in squalid tent cities in Port-au-Prince.

Many children, especially those living in rural sections of Haiti, are malnourished and only half of country’s children are vaccinated. Women are also vulnerable to death from complications of childbirth. Another imperative of the GoH and the international community is the improvement of the health care system and rehabilitation of the hundreds of hospitals and clinics damaged or destroyed in the earthquake.

Another pressing issue for the country is the improvement of its education system. The literacy rate in Haiti is less than 60% and only half of Haiti’s children attend primary school. Only 20% of the country’s children complete secondary school with a slim minority able to attend college - almost always in a foreign country. Educational opportunities are especially limited in the countryside where, until just a few years ago, illiteracy was nearly universal. Public school facilities are woefully inadequate. What passes for public schools are little more

than bare walls equipped with a chalk board and simple desks. Students are often taught by educators with no teaching credentials who themselves never progressed past primary school. School supplies beyond paper and pencil are rare. Although private and parochial schools, which provide 80% of the primary classrooms in Haiti, are better equipped and staffed, they are too costly for the average Haitian family. The situation went from bad to worse after the earthquake that left hundreds of schools damaged or destroyed. Fortunately, the new Martelly administration is placing great emphasis on public education promising free primary school for every child in Haiti.

The Company has seen a noticeable uptick in school repair and construction contracts, a sign the GoH is already fulfilling its commitment to improving Haiti’s schools. Private schools are also seeing a construction rebound as supporting nGOs and churches pour money into the reconstruction effort. The Company has chosen to participate in what is admittedly a difficult market. Haiti presents all of the challenges of business creation and operation in a developing world setting. However cliched the notion that great challenges create great opportunities, it is a fact that in Haiti’s problems there lie advantages for companies adept at working in the developing world and investors interested in maximizing returns while improving the circumstances of the poor.

January 2010 Earthquake


Haiti’s Economy

Haiti is the poorest nation in the Western Hemisphere. In 2010 per capita GDP was $663 uSD down from $722 in 2009 a result of the disastrous hurricane season in 2008 and the 2010 earthquake. Haiti’s economy is primarily dependent on remittances from expatriates, foreign aid, and reconstruction projects funded by international donors. There is little organic economic activity because of the chronic political and social issues that have plagued the country since the end of the Papa Doc and baby Doc Duvalier regimes that ruled Haiti from 1957 to 1986. The country imports over 70% of its market goods. Haiti’s largest trading partner is the united States which supplies 40% of Haiti’s goods and services.

The Haitian economy has four primary sectors, listed here in descending percentage of GDP:

• Services - 43% consisting of tourism, professional, retail and government• Other - 25% Much of Haiti’s economy is informal (street vendors, unlicensed transportation providers, farmers’ markets, etc.) and difficult to assess• Agriculture - 24% Two thirds of the population depend on agriculture for their livelihoods, much of it subsistence farming vulnerable to natural disasters exacerbated by deforestation. Haiti’s main agricultural production is coffee, mangoes, sugarcane, rice and other fruits and vegetables.• Industry - 8% primarily from apparel manufacturing.

Economic Indicators

Haiti’s economy is showing signs of recovery across every sector. Boosted by remittances, foreign aid (including the retirement of all of its pre-earthquake international debt) and direct foreign investment, economic indicators for the next five years are positive:

• Real GDP growth is 8.6% for 2011, a major improvement over 2010 which saw a decline in GDP of 5.1%. • Inflation is down from over 20% in 2008 to rates of -4.7% for 2009, 4.1% in 2010 and 6.45% in 2011 and is expected to remain reasonably low at about 6% annually over the next five years.• Haiti’s currency, the gourde (HTG), has maintained its value at a relatively constant 40 to 1 uS dollar. • Conservative investments by Haitian banks largely insulated the economy from the 2008 world-wide recession. • Remittances remain strong with more than $1 billion (20% of GDP) sent to Haiti by the diaspora in 2011. • The International Monetary Fund (IMF) noted in an April 2011 report that it has provided $26.2 M since the earthquake and plans to continue to support Haiti’s long term reconstruction plans. Their outlook for Haiti’s economy is “favorable”. • GDP growth will accelerate to around 6% per year for the next five years driving an 87% increase in GDP from 2011 to 2016. • GDP per capita will lift off a five year plateau increasing 28% by 2016. • The country will see a sharp increase in investment as a percentage of GDP

from a 5 year average of 29% to a five year average of 49%, nearly a 70% increase. • Imports will be up slightly and exports stable at about a 10% annual increases through 2016. • Haiti’s population will increase 8% over five years, a modest growth rate compared to many other developing world

countries. • As the GoH continues to move through the post earthquake rebuilding process, its spending as a share of GDP will decline while the foreign debt burden will double over five years from 15% of GDP in 2011 to 29% of GDP in 2016.


Proximity to the united States

Haiti is only two hours from Miami by air and there is brisk traffic between the two countries. There are two international airports in Haiti, Toussaint Louverture in Port-au-Price and Cap-Haitien airport in the northern coastal city of Cap Haitien. Only 72 hours by boat from the united States’ eastern seaboard, Haiti has two deep water ports, one in Port-au-Prince and the other at Cap Haitien. A third port is under development in jacmel on Haiti’s southern coast.

Language

Haiti’s official languages are Haitian Creole and French but many people conduct business in English as well.

Branding

The TSC Global brand is already familiar to many construction and design professionals in Haiti and a large number of nGOs.

We will brand all of our marketing materials using our TSC Global logo. Pallets of CLC block will be marked with the company logo. Precast panels and other goods will be stamped with the TSC

Global logo. Customers will be incentivized to put TSC Global signage on their construction

sites. Employees will be outfitted with TSC Global uniforms suitable for their particular job duties.

Our branding strategy includes translating all marketing materials, slogans, tag

lines, training materials and presentations into French and Haitian Creole, the two official languages of Haiti.

Cost Category notes units Haiti Dominican Republic

Mexico India China Pakistan Bangladesh Cambodia

Labor Cost u.S.$ / Hour 0.48 0.90 1.86 0.83 1.44 0.55 0.32 0.33

Hours Worked per Day

Without OT Hours / Day 8 8 8 8 8 8 8 8

Hours Worked per Week

Without OT Days / Week 48 44 44 48 48 49 48 42

national Holidays

Days / year 16 13 14 17 11 18 10 25

Hours per year per Worker

Without OT - Less Holidays

- 10 Days vacation

Hours / year / Worker

2288 2104 2096 2280 2328 2324 2336 1960

Electricity Cost to industry u.S.$ / KwH 0.23 0.14 0.15 0.086 0.065 0.071 0.053 0.017

Building Cost of industrial space

construction

u.S. $ / Sq. Meter

160 220 250 140 97 150 120 130

Transport From Source Port to Miami/Long Beach

uSA

u.S. $ / 40’ Container

800 800 0 2100 1800 2000 1900 1900

Taxation Corp Tax Percent 0 n/A 35 33.66 25 35 35 20

Sales Tax Percent 0 0 0 0 0 15 0 0

vAT 0 0 0 12.5 17 15 15 15 10

•Source: Werner International, validated against Werner and international databases. See CFI - Invest in Haiti http://www.cfihaiti.net/j10/index.php/en/why-haiti

Advantages of Doing Business in Haiti

Advantages of Doing Business in Haiti

Currency Exchange

uS currency is welcome in Haiti and has had a stable exchange rate of about 40 HTG to the dollar.

Other American Companies in Haiti

Several major uS firms operate in Haiti now including commercial banks, apparel makers, telecommunications companies, airlines, oil and agribusiness firms.



Since the devastating earthquake that struck Haiti on january 12, 2010, our company has spent considerable time and resources in the country. Over the past two years, TSC Global executives have traveled to Haiti 18 times for marketing and project work.

A significant accomplishment for the company was our being selected from hundreds of competing architects and builders to construct a show home at the “building back better Communities” (BBBC) international housing exposition in Zoranje near Port-au-Prince. The competition was sponsored by the Government of Haiti (GoH), the World bank and the Clinton Foundation. A 718 square foot duplex show home was constructed using our innovative, proprietary roofing system, TSC HyPar.™

Apart from the advantage of having a model home in the Haitian marketplace, our work has enabled us to create a broad network among the public and private actors now working to rebuild Haiti. Our extensive travel and work in Haiti gives us a unique understanding of the logistical and human challenges embedded in the Haitian market.

Haiti’s growth trends, currency stability, gains from foreign investment and capital construction needs favorably influence the the Company’s market segment. After two years of uneven progress, the international community, relief and development organizations

and the GoH are all aligning to jump start the country’s reconstruction and development efforts. It is widely understood that the emergency phase of earthquake response is over and the focus now must be on economic development.

Rebuilding Haiti’s infrastructure and creating jobs are now the priorities. Michel Martelly was elected President of Haiti in mid 2011 and finalized his cabinet in november. At a recent invitation only investor conference, the Company heard President Martelly declare Haiti is “Cleared to Invest”. He has introduced a pro-investment, pro-business agenda with instructions to government ministries to clear the way for foreign investment. His goal is to create 500,000 new jobs within three years – all in the private sector. There is broad agreement among business people in Haiti that the opportunities for private investment and small business are better than at any time in the last 50 years.

In a recent interview, Tom Adams, the uS State Department’s special coordinator for Haiti, admitted that the pace of reconstruction was far too slow but he was now seeing improvement because of greater engagement from the Haitian government. His tone was optimistic saying “...with good economic decisions, good governance and help from the West there is no reason Haiti cannot put its economic house in order”.

Marketing



Market Segments

The Company sees at least six sizable market segments that have opportunities for growth and substantial sales revenue:

Tourism - Tourism accounts for 24% of Haiti’s GDP and is up substantially since the earthquake. Haiti, once a popular tourist destination dubbed the “jewel of the Antilles”, has a rich and diverse culture and over 900 kilometers of virgin coastline ready for resort development. The cruise industry reported passenger traffic of 750,000 in 2010, a 70% increase over the previous year. The

World Travel and Tourism Council (WTTC) estimates tourism to Haiti will increase an average of 4% per year through 2021 - the fastest growth rate of any Caribbean nation. There is a shortage of more than 1,000 hotel rooms, mainly in Port-au-Prince, with demand rising as Haiti’s economy improves. Major hotel chains, like Marriott, Best Western and Choice hotels, have committed to or begun construction on new facilities in the capital. Improved political stability has lead to an increase in returns and visits from the Haitian diaspora most of whom live within a two hour flight of their homeland.

Reconstruction & Infrastructure Development - until now, the rebuilding of Haiti’s infrastructure has been painfully slow. The need for reconstruction and infrastructure improvement is profound. The Post-Disaster needs Assessment (PDnA) performed by the World bank, un, European Commission and the Inter-American Development bank (IDb) shortly after the earthquake found that the total amount of damage and economic losses exceeded 120% of Haiti’s GDP, an estimated $7.9 billion. 70% of the losses ($5.5 billion) came from the private sector and 30% ($2.4 billion) from the public sector. $4.3 billion in damage was

done to infrastructure like housing, schools, hospitals, commercial buildings, government offices, roads and bridges, ports, and airports. Haiti has 3,600 km of roads in need of repair and improvement. Airport traffic at the international airport in Port-au-Prince far exceeds its current capacity. Haiti’s major ports in Port-au-Prince and Cap Haitien need upgrading and expansion. There is 500 MW excess demand for power from the existing 150 MW capacity grid and there is an urgent need for new energy sources to replace current reliance on wood and coal which comprise 70% of the energy consumed in Haiti.


Affordable Housing - Even before the earthquake, the housing situation in Haiti was dire. The influx of migrants to cities like Port-au-Prince created some of the largest, most densely populated slums in the world. The earthquake caused at least $2.3 billion in damage to the housing sector wiping out hundreds of thousands of homes. Although over one million of the displaced have found shelter, there are still 500,000 people living in tent cities. About 100,000 temporary housing units of plywood and tin were constructed

after the earthquake but are already deteriorating in the wet climate. People are so desperate for housing they are returning to their dangerous, heavily damaged homes to live in the rubble. Others are rebuilding using the same inadequate building techniques and construction materials that lead to the massive destruction and loss of life in 2010. It is estimated that at least 250,000 permanent housing units will be needed in the next few years.

Private Sector Housing- Although

public sector housing will create the largest demand for home construction, there is a vibrant private sector demand for middle and upscale housing developments as well as repairs and renovations. Haiti has a small upper class that controls 50% of the nation’s wealth. Made up of 100,000 well educated, affluent individuals, they have the ability to pay for home repairs, home improvements and new homes.

There are about 1.5 million Haitians living overseas mostly in the united States, Canada and neighboring Caribbean countries. Many are well

educated, prosperous and politically connected. These expatriates returning to their homeland to live or to build second homes will also add to private sector housing demand.

There is another group of Haitians having the ability to purchase homes, the rising middle class. These professionals, government workers and nGO staffers comprise 15% of the population, 1.5 million people. Although mortgage financing is limited, it is becoming more available as programs like Kay Pa’m, a $100 million mortgage loan initiative launched in 2011, become more common.

Continued Investments from Foreign Aid - much of the capital required for infrastructure, affordable housing and reconstruction projects will continue to come from international aid organizations and bi-lateral or multi-lateral donors like uSAID, the World bank (Wb) and Inter-American Development bank (IDb). The Wb provided $479 million to support Haiti’s recovery in 2011 alone and has committed another $255 million for 2012. The IDb is providing $200 million annually for the next 10 years in a grant facility to promote reconstruction and economic development. Canada committed $19.9 M for 2012 to resettle camp dwellers camp dwellers to permanent homes outside of Port-au-Prince. Habitat for Humanity, a large American nGO working in the housing sector world-wide, will build 50,000 homes over next 5 years. The European union (Eu) is dedicating €33.7 M ($43 M uSD) to repair or rebuild 11,000 homes in Port-au-Prince during 2012. In 2011 the Government of Haiti announced its 16/6 initiative (16 neighborhoods and 6 camps) which will rebuild neighborhoods in the capital city. This $78 million dollar project, financed by the Fund to Reconstruct Haiti (FRH) and the un, will commence in 2012 rebuilding infrastructure and constructing over 5,300 homes.

The united States is Haiti’s strongest international supporter and will continue to invest millions of dollars in the country over the next five years.

uSAID is working on three essential infrastructure requirements: • Permanent housing in identified

development corridors for internally displaced persons (IDPs) with housing developments in and around secondary cities, including provision of infrastructure services, conversion of existing transitional shelters to permanent housing, and construction of upgradable core housing units.

• Investing in an electricity sector that is reliable and financially viable. This includes: rehabilitation of high-priority energy infrastructure and generation facilities; modernizing the sector by improving governance; strengthening institutional capacities; and attracting private sector participation. Given the magnitude of Haiti’s needs, u.S. Government investment will be coordinated with other donors, the Government of Haiti, and the private sector.

• Investment in infrastructure for the agricultural and industrial sectors for road and port development to help expand economic activity beyond Port-au-Prince, including improving rural farm-to-market feeder roads and bridges to reduce transportation costs and loss of value of agricultural products en route to local or export markets.



Marketing Strategy

TSC Global is devoting considerable resources to our marketing efforts in Haiti including the dedication of one of our senior executives to the full-time management of our marketing strategy. We are building our marketing campaign on two years of networking, client relationship management and sales efforts that have amassed a deep network of clients and advocates both in the united States and in Haiti.

Having a Haitian partner is crucial to our success. Foreign companies that form subsidiaries in Haiti must have at least one Haitian on their board of Directors. More importantly, the right partner can “make or break” foreign companies entering the Haiti market.

We have worked with one partner since we began work in Haiti, Truxton S.A founded by the Gardere family in the 1930’s. The CEO of Truxton is Didier Gardere who successfully grew his company into a diversified organization working in both the financial and construction sectors. Mr. Gardere is an entrepreneur and engineer making him especially well qualified to assess the marketability of new construction products like CLC. His support for TSC Global and our products is without reservation. Truxton is one of Haiti’s premier construction companies which helps give our CLC products the legitimacy needed for quick acceptance by the local building community.

Our marketing will be done on both a strategic level, by our Executive v.P. Of Marketing, and local level by a qualified Haitian sales person working out of our production location. Strategic marketing will promote the Company inside and outside of Haiti concentrating on acquisition of large customer accounts.

Strategic marketing also encompasses client relationship management, sales results reporting, expansion of distribution channels, sales promotions, advertising, branding, event management and public relations. It is expected that the Executive v.P. Of Marketing will dedicate a minimum of one three week sales trip to Haiti each sixty day period for the first year of our operation. After our operations are better established, and a core of customers secured, the number of marketing trips will reduce to one three week trip every quarter.

Local sales efforts will be managed by the Executive v.P. Marketing with an indirect reporting relationship to the TSC Global project leads assigned to the task of standing up operations at the new plant in Haiti. There will be a minimum of two uSA based TSC Global staffers on the ground in Haiti at all times during the start up and early production phases of our operations. These individuals will work closely with our local sales professional to carry out day-to-day sales efforts.

Total Addressable Market*

TSC Global’s study of the Haitian construction marketplace concludes that the five year Total Addressable Market (TAM) for our lightweight concrete products is at least $850 Million. The estimated five-year revenue from a single production facility is $12 to $14 Million, which is less than 2% of the TAM.

We believe our market share will be 10% by year five. 10% of the TAM is $85 Million which would require six times the capacity of our initial production plant. CLC manufacturing and construction is a rapid growth market virtually untapped by competitors.

* The Total Addressable Market is the total amount of revenue that a company could generate if it acquired every potential customer

TSC Global LLC 49


Market Supply

Much of the concrete block in Haiti is produced using inferior raw materials and production methods. Whether manufactured by informal roadside block makers or block making businesses, most of the CMu in Haiti is not suitable for structural use. Increasingly, nGOs, developers and builders will not accept low quality block and reinforced concrete creating shortages for structural grade materials.

There are many deficiencies in the existing CMu block making industry in Haiti. TSC Global will exploit these shortcomings and fill the increasing demand for better quality blocks and concrete.

• Informal production plants with no inspection or certification

• no compaction or vibration• Poor curing• Poor concrete aggregate – river

sand and rock. High strength concrete requires using “sharp” (angular) sand and rock aggregates.

• Poor mixing – usually site batched on the ground or in small concrete mixers.

• Inconsistent batching and poor mix designs – without adequate cement paste, concrete is weak

• Poor quality forming creating inferior concrete with voids and pockets of unconsolidated aggregate.

• undersized, inferior grade rebar used for concrete reinforcing.

• Rebar is installed without proper connections between foundation, wall and bond beam components.

• Walls compromised by impromptu openings for electrical service and plumbing

To further add to supply shortages, many structural grade block-making businesses were destroyed in the earthquake. Inventories are low and customers wait for weeks for delivery of even small orders.

Distribution Channels

Our distribution will be by direct sales to our target market customers. Once our product is well established in the market, we plan to build on relationships we develop with materials dealers and block makers who can begin to stock our blocks for sales to their customers. These dealers will be carefully selected for their market reach, reputation and willingness to partner with TSC Global in training customers in proper use of our products.

As our brand increases in recognition and value, dealers will be offered the opportunity to co-brand with TSC Global in their marketing efforts. Our cultivation of relationships with design professionals, from both the private and public sectors, will result in CLC being specified in their designs.



Promotion

The Company will employ a diverse set of strategies in our sales efforts in Haiti:

Direct sales - the Executive v.P. Marketing and local sales representative will call on prospects, manage sales leads, maintain customer relationships, secure referrals, handle phone inquiries, monitor tenders, and collect information for preparation of bids and RFP responses.

The Company will use a customer relationship suite to manage the sales process like Daylite or ACT!. Our local sales representative will have a laptop computer with Internet service to help maintain communications with customers and the headquarters office in Denver.

Our Haiti administration staffer will assist the sales representative with telephone inquiries and proposal creation. Our Haiti plant will have at least one office phone to give

customers a clear channel of communication to a full time office team. The sales representative will be outfitted with a mobile phone for easy contact from prospects and customers.

Trade shows - both in Haiti and the adjoining Dominican Republic where many contractors base their operations.

Event selling - the Company will ship

500 blocks to Haiti in March 2012. We will arrange for a demonstration site in Port-au-Prince and invite target customers in the construction sector, materials dealers, architects and engineers to several “meet and greets”. Our objective is to begin promoting CLC in Haiti and to secure enough interest to generate pre-orders and letters of intent.

After operations are established in country, we will hold bi-monthly



attractive to a wide audience. Guests will be asked to sign in and encouraged to give us contact information or business cards. TSC Global staffers, with some temporary hires as event hostesses, will wear polo shirts and hats carrying our company name and logo. vIP visitors will be given polo shirts, ball caps or other promo items to mark them as very special guests. All attendees will receive a logo imprinted bag with product information, business card, and other SWAG.

Permanent demonstrations - sample walls will be built at our plant site to interest visitors in our products. Our ongoing marketing efforts will generate a steady flow of prospects who will make casual visits to our production plant. Each visitor will receive a SWAG bag containing product brochures and contact information imprinted gifts such as pens, note pads, post-it-notes, etc.

demonstrations at various locations in the Port-au-Prince and jacmel metropolitan areas. Invitations will be sent by email or personal visit to prospects. These demonstrations will be casual, hands-on affairs where our guests are encouraged to build a wall along side TSC Global team members. Food and beverages will be served to help make these fun events that are


Signage - the production plant will have a large sign announcing the location of TSC Global - Haiti. Since streets signs are nearly non-existent in Haiti, our marketing materials will have maps locating our plant in reference to local landmarks.

We will have an open door policy towards visitors with restricted access to production areas. Our plant staff will be trained to give brief tours of the production and storage areas. vIP visitors will be handled by senior managers.

Displays & Tours- Our production office will have a small display area with sample materials, cut-a-way wall assemblies and other displays. We will cast small CLC blocks, imprinted with our logo, to give to visitors. The office will be staffed during business hours by a receptionist/administrative person and by our marketing representative when not on outside calls. The receptionist will be trained to connect visitors to the plant manager to arrange for briefings or plant tours. Seminars - CLC is a new building material for Haiti and will generate interest from the building community. Senior TSC Global managers will book invitation only seminars with selected prospects at upscale, attractive gathering places such as the Caribe Hotel in Petion-ville.

Customer training - customers will be encouraged to attend free training classes in the proper use of our products in wall assemblies. Our wall assemblies are similar to traditional confined masonry construction but have some differences requiring training and job site quality control to install properly.

We will market our CLC products as a total solution not as a replacement block for CMus. Customers will be purchasing products that become part of a final wall assembly built with our products: CLC blocks, high strength grouts and specialty renders (stuccos). Training classes will be open to visitors and customers will be allowed to invite their associates to our sessions.

Handbooks and research publications - our senior managers will publish handbooks and research papers related to concrete and CLC materials and methods. These references will be presented to construction and design professionals in the united States and Haiti. We will actively seek speaking opportunities with construction trade groups.

Networking organizations - the Company has a close relationship with the current president of the Haitian Chamber of Commerce. We will make presentations to local Chambers of Commerce, and other networking groups such as Rotary, to broaden the

audience familiar with CLC.

US Embassy, Department of State, USAID and US Commerce Department - the Company is working with united States Government representatives operating out of the uS Embassy in Port-au-Prince. These agencies have a keen interest in promoting uS companies working in Haiti as well as furthering the reconstruction of Haiti. Our Company is already viewed by many in the uS Government as a solution provider with great potential to impact the construction industry in Haiti. Senior Company representatives will maintain close relationships with key members of the uS diplomatic contingent in Haiti.

Internet Marketing - web site and social media such as blogs, Twitter, Facebook, Google+. Our web site content will be presented in English with a French version available for readers who prefer to read content in their native language.


The Government of Haiti has well established economic incentives and a legal environment friendly to foreign investment. The united States has offered trade incentives to Haiti for many years under agreements like the Caribbean basin Trade Partnership Act (CbTPA), the Hemispheric Opportunity through Partnership Encouragement (HOPE) Act, and the 2010 Haitian Economic Lift Program (HELP) Act.

Foreign investors are explicitly protected in the 1987 Haiti Constitution and a 2002 law that prohibits fiscal and legal discrimination against foreign investors. American companies can freely transfer interest, dividends, profits and other revenues derived from operations in Haiti. They are guaranteed fair compensation paid in advance for expropriation of private property for public use or land reform or losses caused by war, revolution or insurrection.

The u.S. Overseas Private Investment Corporation (OPIC) is active in investments made by American firms in Haiti. Haiti has ratified the International Convention for Settlement of Investment Disputes which further enhances investor protection when contracting with the GoH. The country is now a party to the World bank’s Multilateral Investment Guarantee Agency (MIGA) which guarantees investments against political risk and helps investors find sources of funding. In 2006, the GoH established the Center of Investment and Facilitation (CFI). This entity is charged with reducing delays in formation of companies, disseminating information helpful to international investors, and generally promoting establishment of new companies in Haiti.

In recent years Haiti has instituted several important programs that reduce taxation of foreign investors. After application and approval by the GoH, foreign investors benefit from a “tax holiday” featuring a zero income and corporate tax rate for up to 15 years and an additional five years of reduced taxation. Companies are allowed accelerated depreciation on capital investments. Imports of machinery and raw materials used in the business are imported duty free. Foreigners and foreign companies are allowed to own land but in parcels of no more than 1.29 hectares in urban areas and 6.45 hectares in rural areas. Ownership must be approved by the GoH. Companies are exempt from land taxes on improvements for 10 years.

Investment Incentives


SIPS PANElS

CEllUlAR lIGHTwEIGHT CoNCRETE

ADVANTAGESwIND & SEISMIC RESISTANT, THERMAl

bENEFITS, PoSSIblE FACToRy PRoDUCTIoN wITH QUAlITy CoNTRolS

DISADVANTAGESExPENSIVE, IMPoRTED, HIGH REPAIR

CoST, SUSCEPTIblE To MoISTURE

$11.00 PER SQUARE FooT

Haiti’s construction materials market is well established but fragmented among many competing firms none with dominant market share. basic materials like cement, concrete, block, electrical and plumbing components are readily available for small scale jobs but large jobs would likely encounter shortages.

Structural grade CMus are in short supply as discussed elsewhere in this document. Construction in Haiti uses materials and methods that are at least a generation behind construction technology in the united States. 99% of work in Haiti is built with either CMus, Reinforced Concrete or a combination of the two. Lumber is used sparingly and usually for roof trusses and interior partitions only. Although “next-generation” building materials like Structural Integrated Panels (SIPS) have been introduced, they have failed to move beyond initial demonstration builds into wider acceptance primarily because of cost and lack of manufacturing facilities in the country. With the possible exception of a 40 home build funded by a uS based church where we believe CLC blocks are being

cast in small quantities, there are no cellular lightweight concrete products or production facilities in Haiti at the present time.

The Haiti construction materials marketplace is primed and ready for the introduction of a high quality, strong and durable alternative to CMus and reinforced concrete.

Price Comparisons

The Company completed detailed pricing comparisons based on our 2011 home build at the Building Back Better Communities (BBBC) housing exposition in Haiti. The table below compares CMu and Reinforced Concrete wall assemblies, the traditional building technique, versus two next generation materials, SIPS and Cellular Lightweight Concrete. The comparison is based on the total cost of materials and labor for a finished wall assembly. CLC costs about the same as CMu and RCC per square foot of finished wall but has important advantages over these two materials. SIPS materials are not price competitive for anything but the most upscale home construction in Haiti.

Competition

ADVANTAGESCoMMoDITy PRoDUCT, PRICE,

AVAIlAbIlITy, loCAl MATERIAlS, FAMIlIARITy


DISADVANTAGESlITTlE QUAlITy CoNTRol

INCREASING RISk oF bUIlDING CollAPSE IN EARTHQUAkES, TIME, lAboR AND MATERIAl INTENSIVE CoNSTRUCTIoN

Concrete blocks


ADVANTAGESCool AND QUIET lIVING SPACE, STRoNG, FIREPRooF, INSECT

PRooF, EASy To MANUFACTURE, “GREEN” MATERIAl, low lAboR CoNSUMPTIoN, lIGHTER FoUNDATIoNS, SAFER IN

EARTHQUAkE, 2 DAy CoRE HoUSE ASSEMbly, lESS MoRTAR, QUAlITy CoNTRollED, No CoNFINING ElEMENTS REQUIRED

REINFoRCED CoNCRETE

ADVANTAGESSTRENGTH, RESISTANCE To HURRICANES, wIDESPREAD

ADoPTIoN, loCAl MATERIAlS, RAPID CoNSTRUCTIoN PRICE

DISADVANTAGESlITTlE QUAlITy CoNTRol

INCREASING RISk oF bUIlDING CollAPSE IN EARTHQUAkES, TIME, lAboR AND MATERIAl INTENSIVE CoNSTRUCTIoN




CoMPETING bUIlDING MATERIAlS IN HAITI

Cellular lightweight concrete is a superior building material along many important dimensions like material strength, thermal efficiency and resistance to water, insects and fire.

Material Thermal Efficiency Workability versatility Acceptance Material Strength Water Absorption Capital Requirements Carbon

WoodModerate if well insulated

by other materialsExcellent Excellent High Good High Low very Poor

Confined Masonry - CMu Poor Good GoodPoor - due to collapse in

earthquakePoor in Haiti Moderate Moderate Poor

Reinforced Concrete - RCC Poor Poor GoodPoor - due to collapse in

earthquakePoor in Haiti Moderate High Poor

Cellular Lightweight Concrete

Excellent - 5 X more efficient than Masonry or

RCCExcellent Excellent Good and Growing Excellent

Low 33% less than RCC or CMu

Moderate Excellent

Major Competitors

Major competitors, meaning companies with fifty or more employees, were researched in the Port-au-Prince and jacmel markets. Most of these competitors are retailers of block, cement, tools and hardware and do not compete with TSC Global as a manufacturer of construction materials. In fact, these dealers are prime prospects for expanding our distribution channels. Of the 14 companies listed in the Port-au-Prince competitor list, only 4 are block producers. Of the 8 competitors in jacmel, none are block producers.

Port-au-Prince Metro Area

1. Affection Contracteur – 95, rue Saint-Laurent, Leogane2. Leomat Construction S.A. – 44, route de CA IRA, Leogane3. Magepa S.A. – 801, rue de l’hopital, Leogane4. St. jean baptiste quincaillerie – 366, Rue Lavandiere, Leogane5. Tout ou Rien materiaux de construction – 71, rue Saint yves, Leogane6. batimat – Rue Salomon, varreux, Delmas7. CRM bloc vibre – 2, Impasse Adolphe, Delmas 338. Dura blocs S.A. – Rue Salomon varreux, Delmas9. Haiti blocs S.A. – Rte de l’Aeroprt, Delmas10. vibration blocs et quincaillerie – 45, rue boirron Canal, Delmas11. Ceramex – 14, rue Rigaud, Petion-ville12. quincaillerie Totale – 53, route de Freres, Petion-ville13. Eco Depot - Tabarre14. Maxima, S.A. – Petion-ville

jacmel

15. bee Cool Materiaux de construction – Rue St. Charles #316. Centre d’achat de blockauss – 35, Blockauss17. Express materiaux de construction – 36, bamboo kay18. Fabric-Fabric – 1, barrier du fortin, rue Stenio vincent19. jAj depot & gravel – 2 bis, rue Raymond Lesbains20. notre Dame de la mercie – 92, avenue barranquilla, St. Cyr21. Remmatco – Rue St. Cyr, entre ave baranquilla et route lamandou22. St. Paul depot – Angle de rues Exima Gilles et St. Phillippe

Competitor Analysis

Presently, there are no significant CLC block producers in Haiti so our competitor analysis references two structural grade CMu block producers, one in an affluent section of Port-au-Prince known as Petion-ville and the other in the city of jacmel on the southern coast.

The Competitor Analysis table in Appendix I analyzes 19 important business dimensions critical to the TSC Global’s success and the relative importance of these dimensions to our customers. In all of the Critical and High Importance factors, TSC Global and our products have compelling advantages over CMus.



Pricing

Our sales prices and cost of goods sold are shown in the table below. All currency values are in uS dollars. Product cost was derived from detailed material and labor estimates included in the Appendices to this business plan. Sales prices were determined from our experiences sourcing materials and building in Haiti. Furthermore, sales prices were set at a level that makes our final wall assembly (local labor & materials only) as competitively priced as the traditional wall assembly in Haiti, concrete masonry units (CMu’s) in contained masonry construction style with simple mortar renders inside and out.

Item Unit Price/Rate CoGS/Unit

block each $0.85 $0.48

6” Panels per sf $2.39 $1.59

7 1/2” Panels per sf $2.87 $1.91

Grout - block 43.5 kg bag $7.75 $4.00

Grout - Panels 43.5 kg bag $7.75 $4.00

Render - block 43.5 kg bag $9.00 $4.50

Render - Panels 43.5 kg bag $9.00 $4.50


Customers

Market InformationState (FR: Department)

number notes

Number of NGo’s operating in Haiti

•Countrywide •10,000 +

•Red Cross•World vision• Catholic Relief Services•Habitat for Humanity• Samaritan’s Purse•uMCOR - Methodists•Mission of Hope•CHF International•Catholic Relief Services•Food for the Poor•OXFAM•jP/HRO•Mercy Corp•Doctors Without Border•IRC•Concern International •And a host of smaller non-profit organizations.

Number of bilat-eral and multi-lateral donors

working in Haiti

•Countrywide •20 +

•Donors with the largest commitments to the housing and reconstruction sector•uSAID•European union•Canada•Inter-American Development bank•unOPS•IOM•unICEF•unDP

TSC Global’s customers are: nGO’s working in the infrastructure and housing sectors; GoH ministries responsible for infrastructure, housing, school and hospital construction or repair; contractors building commercial, resort, affordable housing and private sector housing projects; design and construction professionals; and materials dealers selling to these individuals, companies and institutions.


number notes

Number of Construction

Related businesses

• Countrywide•Ouest •Sud-Est

• 828•589•56

•Construction & Renovation Contractors or Suppliers and Trades•Port-au-Prince Metropolitan Area•jacmel and vicinity

Number of building

Construction Contractors

•Countrywide•Ouest •Sud-Est

•264•196•15

•Commercial & Residential•Port-au-Prince Metropolitan Area•jacmel and vicinity

Number of cement,

concrete, brick and wood suppliers

•Countrywide•Ouest•Sud-Est

•148•92•8

•Port-au-Prince Metropolitan Area•jacmel and vicinity

Number of foun-dation and exca-vation contractors


•14•13•1


Number of sand; gravel; asphalt and

stone suppliers including blocks


•31•27•2



number notes

Government of Haiti Ministries responsible for infrastructure,

housing and insti-tutional construc-

tion projects

•Countrywide •13 +

•Ministry of Interior•Directorate of Studies•Planning and Monitoring•Ministry of Education•Ministry of Planning•Office of Monetization of Development Aid Programs•Ministry of Public Works•Ministry of Ports•national Laboratory of buildings and Public Works•national Council on Telecom.•Ministry of Sports•Ministry of Health•national Commission on Government Procurement



Legal Environment

Business Formation

In 2011, the GoH streamlined business formation and improved its regulatory framework to promote foreign investments. The GoH no longer requires review of business formation by the President’s or Prime Minister’s offices significantly reducing the time it takes to form a new company. Foreign companies are permitted to form a Haitian company using a variety of organizational styles similar to the Sole Proprietorship, Partnership, Corporation and Limited Liability Company forms common in the united States. Most firms are created as Corporations known in Haiti as Socie´tie´ Anonyme or S.A.. Haitian companies require at least one Haitian citizen be a shareholder/partner and be on the Board of Directors. An S.A. must be formed using a Haitian attorney. The Company has a Haitian partner with whom we will form our TSC Global

- Haiti S.A. subsidiary. Formation of the S.A will be done concurrently with purchase and shipment of production equipment to Haiti both of which take approximately 60 days.

Taxes

Foreign companies operating Haitian subsidiaries are subject to Haiti taxes on company profits as well as payroll taxes analogous to the united States’ Social Security system. The Company will secure the services of a Haitian tax accountant to assist us with compliance with all Haitian tax and employment laws. It is expected that all of our Haitian staff will be employees, rather than independent contractors, therefore subject to minimum wage laws, payroll taxes, and other employment regulations.

The Company expects to benefit from special trade incentives

provisions recently enacted by the GoH that waive corporate income taxes for 15 years and provide other incentives such as accelerated depreciation, duty waivers, and property tax exemptions. because these trade incentives require an application to the GoH and ministry approval, we have included customs duty in our estimate of cost for our initial shipment of equipment. Please see the Incentives for Foreign Investors section for details.

visa Requirements

American citizens can easily obtain entry visas for 90 days at the airport in Port-au-Prince. There are no entry or exit fees. The Company expects to rotate its uSA based employees out of Haiti every 60 - 90 days unless it becomes necessary to deploy expatriate staff for longer durations. Residence permits are available if needed for permanent expatriate staff.

Investor Protections

Haiti has established wide ranging legal protections for foreign investors. The 1987 Constitution guarantees investors’ rights to fair and equitable treatment under Haitian law. Haiti has also signed other protection guarantees with its major export partners (uSA among them) guaranteeing free transfer of interest, dividends, profits, and income earned by nationals of each country. Foreign investors enjoy equal protection under Haitian law and have the same rights and responsibilities of any Haitian person or company. Investors have the freedom to make all investment and commercial transactions authorized under Haitian law. The GoH must refrain from interfering in the activities of private enterprise except to ensure compliance with laws and regulations.


Step Procedure DaysCost (HTG)

Cost ($uSD)

Where?

1.

Deposit legally required initial capital and obtain

deposit evidence. Deposit varies by industry.

1 100000

$2500 national bank

2.Prepare Articles of

Incorporation10 25000 $625 Lawyer

3.notarize company

deeds and Articles of Incorporation

157000

- 25000$175 - $625 notary

4. Pay registration fee (DGI) 1 300 HTG $7.50Ministry of Commerce and

Industry

5.

Register with the Commercial Registry and

obtain authorization to operate.

18

no charge

no ChargeMinistry of Commerce and

Industry

6. Publish Incorporation 605000 - 35000 HTG

$125 - $875

Official legal journal (Le Moniteur)

- 1-9 pages: 5000 gourdes- 10-25 pages: 20000

gourdes- More than 26 pages:

35000 HTG

7.Obtain tax ID & pay fees and obtain certificate of

patent15

10000 HTG +

$250 Tax authorities (DGI)

8.Obtain professional

identity card17

300-500 HTG

$7.50 - $12.50

Ministry of Commerce

9.Obtain special

commercial books2 5000 $125 Accountant

Steps in S.A. Formation

Formation of TSC Global - Haiti S.A. will require the following steps with payment of various professional and government fees.

Step Procedure DaysCost (HTG)

Cost ($uSD)

Where?

10.

Legalize commercial

books7 1000 HTG $25

Dean of the first instance court

11. notification of hiring 1no

chargeno charge Labor Ministry

12. Register for Social Security 1

no charge

no chargeOffice d’ Assurance du

travail

13.Register for Retirement

Insurance 1no

chargeno charge

Office d’Assurance vieillesse

60-90 Days196,800 HTG

$4,920

2/11/12

4/1/12

5/21/12

7/10/12

8/29/12

10/18/12

12/7/12

1/26/13

Secure Financing

Make Sample Blocks

Ship Samples to Port-‐au-‐Prince

MarkeCng Trip #1 -‐ Demo Blocks

Hire HaiCan Accountant & Open Bank Account

Hire HaiCan AKorney & File S.A.

Equipment Bids -‐ HaiC

Equipment Bids -‐ USA

Plant Site Survey

Secure Raw Material Sources

Order Equipment -‐ USA and Ship

Obtain Tax Preferences

Order HaiC Equipment, Build Plant

Recruit & Hire HaiC Staff

MarkeCng Trip #2 -‐ Exec V.P. MarkeCng

Blocks Phase I ProducCon -‐ 43,000 / Month

Blocks Phase II ProducCon -‐ 86,000 / Month

Blocks Maximum ProducCon -‐ 129,000 / Month

Panels Phase I ProducCon -‐ 6,900 SF / Month

Panels Maximum ProducCon -‐ 13,800 SF / Month

Phase I Grout & Render -‐ 1,608 Bags / Month

Phase II Grout & Render -‐ 3,215 Bags / Month

Grout & Render Maximum ProducCon-‐ 6,430 Bags / Month

Hai$ CLC Plant Milestones

# of Days to Complete



Plant Operations

The center of plant operations will be located in Port-au-Prince within 3 miles of the international airport. The site sits immediately adjacent to an ongoing sand and aggregate mining operation which is, not coincidentally, the source for smooth sand and fractured sand required for the manufacture of CLC blocks and precast panels. The physical site will afford two acres (86,000) square feet of space for secure plant operations and inventory storage. The operational pursuits of the plant will be limited to the sale and production of CLC blocks, CLC precast panels, and special pre-bagged grout for render coating and vertical column fills. The plant will have the following operations: site batch (mix) cellular light weight concrete; shuttle plastic state concrete to pouring locations; form and pour blocks and panels; palletize blocks and panels for shipment, mix and bag grout products and; load transporting trucks arranged by TSC Global or the customer. TSC Global key u.S. personnel will manage and supervise the initial plant construction, batch plant operation, forming and placing concrete, stripping and palletizing of finished product. Plant business management and sales will also be performed by TSC Global American personnel

in the initial startup of operations. Employees of Haitian descent will be identified and selected based upon qualifying merits for subordinate roles regarding plant management, sales, bookkeeping, supervision and quality control. TSC Global u.S. personnel will gradually and incrementally relinquish day to day operational control to counterpart Haitian employees, while maintaining senior oversight duties and executive authority.

Batching and Forming

The cellular concrete batch plant is sized to accommodate 75 to 100 cubic yards of concrete in one working day. block production of 5600 blocks per day will consume approximately 50 cubic yards per day and the panel production will vary from 16 to 35 cubic yards per day.

Batch equipment includes a small vertically oriented silo for storage and dispensing of Portland cement. A small belt conveyor, with measuring hoppers, will feed 1.75 cubic yard mobile mixers (trailered) with pre-measured amounts of sand and cement. A small used tractor loader will feed the hoppers with sand or cement. A water well (drilled on site) will furnish water required for the mixing of concrete. A foam generator will be located at a station near the initial batch

Cement OptionalFly Ash

Batch

Sand

WaterFoaming

Agent AirWater

Foam Generator

Concrete Mixer

Blocks Panels In-Situ



loading station. A used bagging machine will be located near the silo station where pre-mixed grout materials will be bagged for distribution.

Blocks are formed by means of light gauge metal bottom and side forms with plastic head-forms (shaping the interlocking feature) organized sequentially within a 10 block gang form. The head forms, after being placed into position within the gang form, receive temporary pass through pipes that create the round shaped voids in the blocks. When the poured CLC reaches a solid state the pipes are removed from the concrete. After initial curing of 12 hours the side forms are stripped away from the form bottom and the blocks are removed. Cycling of the forms occurs daily – each block form produces one block per day. The capital cost of the block forming system is identified in the capital equipment listing. See the attached photo showing the forming technology.

Forming tables will be constructed at a height of 30” and will measure 80” in surface width and 150’ in length. 6 of these tables will be constructed and each has the capacity to receive 1000 block forms (100 gang forms of 10 blocks each). These forming tables will be housed in 20’ wide by 160’

long shelter buildings sheathed in plastic to allow production during the rainy season. Each shelter building will contain two forming tables the full length of the building, with tables arranged to allow an 8 foot wide driving isle centered within the buildings. Mixed CLC will be poured (back chute method) into the forms by means of mixer vehicles traveling the center isle while dispensing CLC. The costs associated with the shelter buildings, forming tables and mixer trailers are identified in the capital equipment listing.

Precast panels are produced by pouring CLC over a concrete casting slab treated with a bond breaking liquid. The CLC is poured within edge forming lumber positioned dimensionally to form the shape of the panel. Reinforcing steel is pre-positioned within the form and becomes imbedded within the CLC . The panels are lifted off the slab after one full day and stored vertically for curing. The capital costs associated with the permanent casting slabs and forming materials are identified in the capital equipment listing.

Production Sequencing and Cycling

Morning hours: early morning crews will strip (remove) the block and panel forms from the

previous days’ pouring of CLC, and remove the product from the forms. Cleaning of forms, oiling of forms and reassembly of forms will continue throughout the day. Blocks will be stacked onto pallets and a forklift will locate the blocks in the curing yard wrapped with plastic to further facilitate curing.

Afternoon hours: the batching operation will commence in the early afternoon and continue through the end of the day.

Trailer mounted mixers will mix and dispense CLC into the blocks forms and panel forms prepared for concrete.

Evening hours: as the CLC achieves an early curing solid state, the pipe sleeves will be pulled from the block gang forms. Basic cleaning will be performed and the cast and batching areas made ready for the next day’s production.



Production volume

Plant production will progress incrementally over the first few months in order to properly train plant workers and grow the labor force in numbers to reach maximum efficiency and production output. The plant will operate 23 working days per month allowing for scheduled maintenance activities on weekends.At maximum capacity the plant can produce 5,619 blocks per work day or 129,237 blocks per month. The precast panel production is forecast to peak at 13,800 square feet of product per month at a minimum.

Pre-mixed bagged cementitous grout and render coating products will peak at 6,948 bags per month.The incremental escalation of plant production occurs over the first 7 months of plant operational activity. See the monthly financial projection sheets reflecting sales of product occurring the month following production.

Quality Control

Aesthetics and dimensional tolerances are easily managed by visual inspection and easily achieved due to the exacting manufacturing processes employed

for block form making – CnC metal cutting, notching and CnC precision milling of dense plastics. The forms impart clean, smooth, exact replications. The casting slab for pre-cast panels will be a flat, smooth trowel finished surface that will impart a similar finish to the pre-cast panel face.

Material testing and controls will be monitored by a quality control specialist solely focused on quality control and compliances regarding CLC and grout mixes. Initial testing of materials will be performed and tested by an independent testing laboratory in Haiti. The lab testing will result in published documentation reflecting the compressive strengths, densities, flexural strength of the CLC and grout mixes. In house testing will also be performed to allow insight into which mixes are most worthy of further third party testing and eventual incorporation into the manufacturing process. Periodic testing will be performed regarding the sand materials utilized to ensure weight and gradation characteristics comply with the design mix requirements. Daily samples (cylinder castings) of CLC will be taken from the batched materials and subsequently tested at 7, 14 and 28 days for compressive strength and matched with inventoried stores of finished block and panel products. All inventoried materials will be tagged or marked to reflect the day of production to

enable the matching of test results with corresponding inventoried products.

Quality product installation controls are important to the overall success of product acceptance in Haiti. TSC Global key personnel will train Haitian contractors in the proper methods of installation. In addition TSC will instruct Haitian contractors in the proper methods of placing reinforcing steel and casting bond beam concrete, casting grout columns and render applications. Each Haitian contractor will be equipped with training and installation manuals, published by TSC Global, to supplement the training program. Installation manuals will be complete with instructions including illustrated reinforcing details, connection details, tolerance criteria and safety instruction. Haitian contractors must attend the training and pass field inspections (performed by TSC QC personnel) to qualify for the TSC Global referral program, whereby, TSC Global refers contractors to developers or other customers.

The purpose of producing pre-mixed and pre-bagged grout and render coat materials is an additional attempt to ensure that high quality materials are incorporated into the assembly process of CLC products. These bagged materials will require only the addition of specified quantities of water to constitute a



material ready for application. The cost of these bagged materials will be competitive with the alternative traditional methods of mixing and batching onsite concrete and thereby extend an incentive for Haitian contractors to purchase bagged grout with their block purchase for same truck delivery service.

Inventory Control

Inventory control within the yard facility of the plant will be a straightforward process of locating each days palletized production at designated areas of the facility. Pallets contain 192 blocks stacked on 48” pallets and are easily handled and positioned by means of a forklift. Inventory control from an accounting perspective will be enabled by pairing daily production records with daily delivery receipts with records managed by our software suite. All out going product will be dispatched and accompanied by a delivery ticket for signature by the transporting company or the customer.

Product Development

The capital equipment section of the business plan lists equipment specifically dedicated to the continuing perfection of TSC products and the advancement of supporting technologies surrounding TSC products. Our

ongoing R&D includes:

• Trial experiments with fibrous additives such as cellulose fiber, fiberglass fiber, poly vinyl alcohol fibers, and other synthetic fibrous materials. These fibers could enhance the performance of the flexural properties of blocks and panels.

• Trial experiments with chemical additives such as alternative foaming agents, water reducing agents, plasticizers, acrylic latex admixtures and crystalizing liquid waterproofing admixtures. These chemical admixtures could enhance the performance of the structural characteristics of CLC and grouts, the lifespan of products and improve the rheology (workability) of materials in the plastic form.

• Trial experiments with aggregates, pozzolan material additives such as fly ash, silica fume (silica dioxide), ceramic materials and various fine and coarse sands. These materials could enhance the structural characteristics and thermal characteristics of the products as well as influence the rheology of the materials both in the matrix of CLC and the coating materials.

• Trial experiments with various forming techniques and forming materials.

• Trial experiments with various external fastening devices

including: nails, screws, embedded weld plates, glues and adhesive concretes. These experiments are important to discover means of attaching surface materials to the CLC substrate.

• Trial experiments whereby destructive testing of complete wall systems is performed under the supervision of independent engineering firms. These tests will serve to demonstrate the superior attributes of CLC systems and document the testing results for various code compliances.

All experimentation deserving of future implementation will undergo independent laboratory testing to verify in-house laboratory findings and secure third party engineering accreditations and certifications.

The Physical Plant Facility

The plant is located three miles east of the Toussaint Louverture International Airport in an industrial section of the city. Major arterial roadways converge on this area of the city and pass within 100 yards of the physical plant. The plant is located within one kilometer of a sand (smooth river sand) mining operation, which is the source of aggregate for the CLC batch production. The property will be leased at a

rate of $.35 per square meter ($.0325 per sf) per month bare without amenities.

A security fence will completely cordon the plant facility. A security guard will be stationed at the plant access gate and will record all incoming visitors and incoming / outgoing deliveries. A shallow well will be drilled on the site to meet production demands of 2,500 gallons of water per day. Diesel generators will serve the facility with sufficient electricity for plant and office operations. The plant will be lighted during night hours and will be attended by a night guard.

The size of the enclosed site is approximately two acres (85,000 sf). The site will be cleared of low vegetation, compacted and filled with 4” of angular rock to allow plant production and traffic in all seasons of weather. The tractor loader (listed in capital equipment) will serve to maintain the site grounds. The site is sized to accommodate 3 buildings measuring 20 feet wide by 160 feet long; pre-cast CLC casting slabs; inventory storage; vehicle loading and unloading; batch plant equipment; parking for plant equipment and visitors; and an office trailer.

Block Gang Forms $ - $ - $ - $ - $ - Wall Forms $ - $ - $ - $ - $ - Panel Forms $ 2,000 $ - $ - $ - $ -

Form Incidentals $ 4,500 $ 9,000 $ 4,500 $ - $ - Casting Tables $ 13,000 $ - $ - $ - $ - Casting Slabs $ 9,840 $ - $ - $ - $ - Cement Silos $ 5,000 $ - $ - $ - $ - Batch Feeders $ - $ - $ - $ - $ -

Render Spray Device $ - $ - $ - $ - $ - Bagger $ - $ - $ - $ - $ -

Towable Cement Mixer $ - $ - $ - $ - $ - Shop Cement Mixers $ 3,600 $ - $ - $ - $ -

Peristaltic Pumps $ - $ - $ - $ - $ - CE Tractor Loader/Forklift $ 20,000 $ - $ - $ - $ -

Site Storage and Fencing $ 10,000 $ - $ - $ - $ - Generator $ 6,000 $ - $ - $ - $ -

Lab Lab Testing Equipment TSCG $ - $ - $ - $ - $ -

Vehicles Owned $ - $ - $ - $ - $ - Vehicles Leased $ 4,563 $ - $ - $ - $ -

$ - Block Gang Forms

Wall FormsPanel Forms

Form IncidentalsCasting TablesCasting SlabsCement SilosBatch Feeders

Render Spray DeviceBagger

Towable Cement MixerShop Cement Mixers

Peristaltic PumpsCE Tractor Loader/Forklift

Site Storage and FencingGenerator

Lab Lab Testing Equipment TSCG

Vehicles OwnedVehicles Leased

$ 92,003 Block Gang Forms $ 150,000 $ - $ - $ - $ -

Wall Forms $ - $ - $ - $ - $ - Panel Forms $ - $ - $ - $ - $ -

Form Incidentals $ - $ - $ - $ - $ - Casting Tables $ - $ - $ - $ - $ - Casting Slabs $ - $ - $ - $ - $ - Cement Silos $ - $ - $ - $ - $ - Batch Feeders $ 13,000 $ - $ - $ - $ -

Render Spray Device $ 7,600 $ - $ - $ - $ - Bagger $ 15,000 $ - $ - $ - $ -

Towable Cement Mixer $ 60,000 $ - $ - $ - $ - Shop Cement Mixers $ - $ - $ - $ - $ -

Peristaltic Pumps $ - $ - $ - $ - $ - CE Tractor Loader/Forklift $ - $ - $ - $ - $ -

Site Storage and Fencing $ - $ - $ - $ - $ - Generator $ - $ - $ - $ - $ -

Lab Lab Testing Equipment TSCG $ - $ - $ - $ - $ -

Vehicles Owned $ - $ - $ - $ - $ - Vehicles Leased $ - $ - $ - $ - $ -

$ - Block Gang Forms

Wall FormsPanel Forms

Form IncidentalsCasting TablesCasting SlabsCement SilosBatch Feeders

Render Spray DeviceBagger

Towable Cement MixerShop Cement Mixers

Peristaltic PumpsCE Tractor Loader/Forklift

Site Storage and FencingGenerator

Lab Lab Testing Equipment TSCG

Vehicles OwnedVehicles Leased

$ 245,600 $ 337,603

Year 1 Year 2 Year 3 Year 4 Year 5

Equipment

USA Purchase

New Capital Equipment

Forming

Equipment

Site

Auto

Forming

Equipment

Site

Auto

Sum of Equipment $ 9,000

Grand Total

$ 78,503

Equipment

Site

Auto

Sum of Equipment - USA Purchase

Total Capital

Equipment

Site

Auto

Sum of Equipment

New Capital Equipment

Forming

Total Equipment - Haiti Purchase

Total Capital

Equipment

Haiti Purchase

Forming

$ 4,500

$ 92,003 $ 78,503 $ 87,503

$ -

$ - $ 245,600 $ -

$ 92,003

$ 245,600 $ 245,600 $ 245,600

$ -

$ 337,603 $ 324,103 $ 333,103 $ 245,600 $ 337,603


Equipment List

Financial Projections


Five year projections are presented in the following pages. years One and Two are shown in month-to-month detail while years Three through Five are summarized by year.

The investment requested is $720,000.

Summary of financial projections:

• 45% of investor capital is secured by plant and equipment

• break-even in month 4

• Projected Rates of Return:

• $900,000 cash out in Month 24 - 12% or,

• $1,200,000 in 24 monthly installments in years 2 and 3 - 24% or,

• $2,500,000 cash out in Month 60 - 29%

• Gross Margin - 48%

• net Profit - 29%

• Operating Expense to Gross Sales - 19%

• Annual Sales - $1.8 Million at peak production

• number of Employees

• Haiti - 13

• uSA- 3

• value of Capital Equipment - $324,000

• Average Inventory - 30 days production

• no Accounts Receivable projected. Cash & Credit Card only.

The principals of the company are willing to offer equity in the production plant as part of a comprehensive return on investment scenario.


Operating Expenses

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of MonthsConstruct Pad & Buildings for

Production Yard $ 45,000.00 $ 45,000.00

Drill Water Well for Production Water

$ 15,000.00 $ 15,000.00

Independent Lab Testing $ 3,000.00 $ 3,000.00 Material Cost $ 10,590.00 $ 10,590.00

Haiti Office/Apartment $ - Haiti Travel - Airfare $ 2,100.00 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 13,650.00

Haiti Travel - Per Diem $ 3,650.00 $ 3,650 $ 3,650 $ 3,650 $ 3,650 $ 3,650 $ 3,650 $ 3,650 $ 3,650 $ 3,650 $ 3,650 $ 3,650 $ 43,800.00 Haiti Travel - Lodging $ 3,193.75 $ 3,194 $ 3,194 $ 3,194 $ 3,194 $ 3,194 $ 3,194 $ 3,194 $ 3,194 $ 3,194 $ 3,194 $ 3,194 $ 38,325.00

Capital Equipment $ 324,102.50 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 324,102.50 Equipment Maintenance &

Repair $ 2,430.77 $ 2,431 $ 2,431 $ 2,431 $ 2,431 $ 2,431 $ 2,431 $ 2,431 $ 2,431 $ 2,431 $ 2,431 $ 2,431 $ 29,169.23

Equipment Fuel $ 760.42 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 9,125.00 Phone Minutes - Foreign Staff $ 250.00 $ 325 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 1,825.00

Phone - Haiti Office Line $ 100.00 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 1,200.00 Taxes VAT $ -

Taxes Property $ - Freight $ 3,500.00 $ 3,500.00

Duty $ 36,840.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 36,840.00 Shipping Fees $ 9,000.00 $ 9,000.00

Bank Fees $ 50.00 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 600.00 Merchant Account Fees $ - $ - $ 732 $ 1,828 $ 2,560 $ 2,832 $ 3,104 $ 3,649 $ 3,649 $ 3,649 $ 3,649 $ 3,649 $ 29,299.33

Auto & Truck Rent $ 4,500.00 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 54,000.00 Auto & Truck Fuel $ 752.50 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 9,030.00

Computer Expenses $ 6,000.00 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 7,100.00 Internet Expenses $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 2,025.00

Phone Expense $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 2,025.00 Other Dues & Subscriptions $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 450.00

Insurance GL Home Office $ 100.00 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 1,200.00 Insurance Auto $ -

Insurance Property Home Office $ 50.00 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 600.00 Insurance Health Home Office $ 666 $ 666 $ 666 $ 666 $ 666 $ 666 $ 3,994.92

Insurance Life & DI Home Office $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 133.16 Insurance WC Colorado $ 91.33 $ 91 $ 91 $ 91 $ 91 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 1,233.46

Payroll Tax - SSI in USA $ 698.70 $ 699 $ 699 $ 699 $ 699 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 9,435.94 Insurance UI - Colorado $ 91.33 $ 91 $ 91 $ 91 $ 91 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 1,233.46 Advertising & Promotion $ - $ 2,695 $ - $ 2,695 $ - $ 3,745 $ - $ - $ - $ 3,745 $ - $ - $ 12,880.00

Meals & Entertainment $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 1,800.00 Furniture and Equipment $ 2,000.00 $ 2,000.00

Office Supplies $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 900.00 Printing $ 800.00 $ 800 $ 800 $ 800 $ 800 $ 800 $ 800 $ 800 $ 800 $ 800 $ 800 $ 800 $ 9,600.00

Business Licenses & Permits $ 3,900.00 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 9,400.00 Professional Fees $ 1,000.00 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 12,000.00

Capital Stock Min Contribution $ 2,500.00 $ 2,500.00 Rent -USA Office $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 10,800.00

Rent - Production Yard $ 1,500.00 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 18,000.00 Payroll USA $ 9,133.33 $ 9,133 $ 9,133 $ 9,133 $ 9,133 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 123,345.67

Payroll Foreign-X Plant $ 2,854.17 $ 3,950 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 25,756.00 $ 49,553.88 $ 49,553.88

$ 545,092.68 $ 37,522 $ 33,305 $ 39,095 $ 37,132 $ 43,303 $ 40,518 $ 41,062 $ 41,062 $ 44,807 $ 41,062 $ 41,062 $ 985,023 Sum of Expense Item

Office Equipment and

Supplies

Professional

Rent

Payroll

Startup Contingencies

Bank

Auto

Computer and Phone

Insurance

Marketing

Site

R&D

Travel

Haiti Equipment

Shipping and Tax

Year 1M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of Months Sum of Months Sum of Months Sum of Months

$ - $ - $ - $ -

$ - $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ - $ -

$ 10,000 $ 10,000 $ 20,000 $ - $ - $ - $ 1,050 $ - $ 1,050 $ - $ 1,050 $ - $ 1,050 $ - $ 1,050 $ - $ 1,050 $ 6,300 $ 4,200 $ 4,200 $ 4,200

$ - $ 3,650 $ - $ 3,650 $ - $ 3,650 $ - $ 3,650 $ - $ 3,650 $ - $ 3,650 $ 21,900 $ 14,600 $ 14,600 $ 14,600 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ - $ 4,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,500 $ 9,000 $ 4,500 $ - $ -

$ 2,431 $ 2,465 $ 2,465 $ 2,465 $ 2,465 $ 2,465 $ 2,465 $ 2,465 $ 2,465 $ 2,465 $ 2,465 $ 2,498 $ 29,574 $ 30,350 $ 30,384 $ 30,384

$ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 760 $ 9,125 $ 9,125 $ 9,125 $ 9,125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 1,200 $ 1,200 $ 1,200 $ 1,200

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 600 $ 600 $ 600 $ 600 $ 3,977 $ 4,373 $ 4,373 $ 4,373 $ 4,373 $ 4,373 $ 4,373 $ 4,373 $ 4,373 $ 4,373 $ 4,373 $ 4,373 $ 52,075 $ 54,637 $ 54,637 $ 54,637 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 54,000 $ 54,000 $ 54,000 $ 54,000 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 753 $ 9,030 $ 9,030 $ 9,030 $ 9,030 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 2,700 $ 2,700 $ 2,700 $ 2,700 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 225 $ 2,700 $ 2,700 $ 2,700 $ 2,700 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 600 $ 600 $ 600 $ 600 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 1,200 $ 1,200 $ 1,200 $ 1,200

$ - $ - $ - $ - $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 600 $ 600 $ 600 $ 600 $ 666 $ 666 $ 666 $ 666 $ 666 $ 666 $ 666 $ 666 $ 666 $ 666 $ 666 $ 666 $ 7,990 $ 7,990 $ 7,990 $ 7,990 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 22 $ 266 $ 266 $ 266 $ 266 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 1,332 $ 1,332 $ 1,332 $ 1,332 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 849 $ 10,187 $ 10,187 $ 10,187 $ 10,187 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 111 $ 1,332 $ 1,332 $ 1,332 $ 1,332 $ 3,245 $ - $ - $ 3,745 $ - $ - $ 3,745 $ - $ - $ 3,745 $ - $ - $ 14,480 $ 10,735 $ 6,990 $ 6,990 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 4,800 $ 4,800 $ 4,800 $ 4,800 $ 1,000 $ 1,000 $ 2,000 $ - $ - $ - $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 950 $ 950 $ 950 $ 950 $ 950 $ 950 $ 950 $ 950 $ 950 $ 950 $ 950 $ 950 $ 11,400 $ 13,200 $ 13,200 $ 13,200 $ 2,000 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000

$ - $ - $ - $ - $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 14,400 $ 14,400 $ 14,400 $ 14,400 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 11,097 $ 133,164 $ 133,164 $ 133,164 $ 133,164 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 22,742 $ 22,742 $ 22,742 $ 22,742

$ - $ - $ - $ - $ 49,892 $ 54,776 $ 34,576 $ 43,021 $ 34,576 $ 39,276 $ 38,321 $ 39,276 $ 34,576 $ 43,021 $ 34,576 $ 43,810 $ 489,697 $ 455,190 $ 446,979 $ 446,979

Year 2 Year 3 Year 4 Year 5

Headcount and Payroll - Haiti

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of Months M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of Months Sum of Months Sum of Months Sum of MonthsExecutives - - - - -

Administrative - - - - - Logistics - - - - -

Project Mgr - - - - - Bookkeeper 1 1 - - - -

Plant Manager 1 1 - - - - Plant Foreman 1 (1) - - - - -

Sales Rep 1 1 - - - - Estimator - - - - -

Maintenance 1 1 - - - - Security 1 1 - - - -

Plant Laborers 7 (7) - - - - - Labor-Construction - - - - - Supers-Construction - - - - -

Foreman-Construction - - - - -

10 3 (8) - - - - - - - - - 5 - - - - - - - - - - - - - - - - Executives 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Administrative 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Logistics 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Project Mgr 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Bookkeeper 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Plant Manager 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Plant Foreman 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sales Rep 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Estimator 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Maintenance 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Security 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Plant Laborers 7 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Labor-Construction 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Supers-Construction 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Foreman-Construction 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

10 13 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5Executives $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Administrative $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Logistics $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Project Mgr $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Bookkeeper $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,740 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,740 $ 2,740 $ 2,740 $ 2,740

Plant Manager $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 6,302 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 6,302 $ 6,302 $ 6,302 $ 6,302 Plant Foreman $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 5,480 $ 5,480 $ 5,480

Sales Rep $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 5,480 $ 5,480 $ 5,480 Estimator $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 5,480 $ 5,480 $ 5,480

Maintenance $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 4,110 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 4,110 $ 4,110 $ 4,110 $ 4,110 Security $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 4,110 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 4,110 $ 4,110 $ 4,110 $ 4,110

Plant Laborers $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,740 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,740 $ 2,740 $ 2,740 $ 2,740 Labor-Construction $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,740 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,740 $ 2,740 $ 2,740 $ 2,740 Supers-Construction $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 5,480 $ 5,480 $ 5,480

Foreman-Construction $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 6,302 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 6,302 $ 6,302 $ 6,302 $ 6,302

Executives $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Administrative $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Logistics $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Project Mgr $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Bookkeeper $ - $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,512 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,740 $ 2,740 $ 2,740 $ 2,740

Plant Manager $ - $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 5,777 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 525 $ 6,302 $ 6,302 $ 6,302 $ 6,302 Plant Foreman $ 457 $ 457 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 913 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Sales Rep $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 457 $ 5,480 $ 5,480 $ 5,480 $ 5,480 Estimator $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Maintenance $ - $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 3,768 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 4,110 $ 4,110 $ 4,110 $ 4,110 Security $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 4,110 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 343 $ 4,110 $ 4,110 $ 4,110 $ 4,110

Plant Laborers $ 1,598 $ 1,598 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,197 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Labor-Construction $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Supers-Construction $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Foreman-Construction $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ 2,854 $ 3,950 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 25,756 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 1,895 $ 22,742 $ 22,742 $ 22,742 $ 22,742


Position

Total

New Employee-

Foreign

Position

Total

Total Number EEs-Foreign

PositionMonthly Wages-Foreign

Position

Total

Total EE Cost-Foreign

Headcount Payroll USA

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of Months M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of

MonthsSum of Months

Sum of Months

Sum of Months

Executive Staff 2 -1 1 0 0 0 0Administrative 1 1 0 0 0 0

Logistics 1 1 0 0 0 0Project Manager 0 0 0 0 0

Bookkeeper 0 0 0 0 0Plant Manager 0 0 0 0 0Plant Foreman 0 0 0 0 0

Sales Rep 0 0 0 0 0Estimator 0 0 0 0 0

Maintenance 0 0 0 0 0Security 0 0 0 0 0

Plant Laborers 0 0 0 0 0Laborers -

Construction 0 0 0 0 0

Supers - Construction 0 0 0 0 0

Foreman - Construction 0 0 0 0 0

2 0 0 0 0 1 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Executive Staff 2 2 2 2 2 1 1 1 1 1 1 1 17 1 1 1 1 1 1 1 1 1 1 1 1 12 12 12 12Administrative 0 0 0 0 1 1 1 1 1 1 1 7 1 1 1 1 1 1 1 1 1 1 1 1 12 12 12 12

Logistics 0 0 0 0 1 1 1 1 1 1 1 7 1 1 1 1 1 1 1 1 1 1 1 1 12 12 12 12Project Manager 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Bookkeeper 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Plant Manager 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Plant Foreman 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sales Rep 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Estimator 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Security 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Plant Laborers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Laborers -

Construction 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Supers - Construction 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Foreman - Construction 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3Executive Staff 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 54,800 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 54,800 54,800 54,800 54,800 Administrative 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 33,702 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 33,702 33,702 33,702 33,702

Logistics 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 44,662 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 44,662 44,662 44,662 44,662 Project Manager 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 44,662 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 44,662 44,662 44,662 44,662

Bookkeeper 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 33,702 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 33,702 33,702 33,702 33,702 Plant Manager - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Plant Foreman - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Sales Rep - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimator - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Maintenance - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Security - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Plant Laborers - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Laborers -

Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Supers - Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Foreman - Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Executive Staff 9,133 9,133 9,133 9,133 9,133 4,567 4,567 4,567 4,567 4,567 4,567 4,567 77,633 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 4,567 54,800 54,800 54,800 54,800 Administrative - - - - - 2,809 2,809 2,809 2,809 2,809 2,809 2,809 19,660 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 2,809 33,702 33,702 33,702 33,702

Logistics - - - - - 3,722 3,722 3,722 3,722 3,722 3,722 3,722 26,053 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 3,722 44,662 44,662 44,662 44,662 Project Manager - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Bookkeeper - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Plant Manager - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Plant Foreman - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Sales Rep - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimator - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Maintenance - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Security - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Plant Laborers - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Laborers -

Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Supers - Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Foreman - Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

9,133 9,133 9,133 9,133 9,133 11,097 11,097 11,097 11,097 11,097 11,097 11,097 123,346 11,097 11,097 11,097 11,097 11,097 11,097 11,097 11,097 11,097 11,097 11,097 11,097 133,164 133,164 133,164 133,164


Position

Total

New Employee-USA

Position

Total

Total Number of Employees-USA

PositionMonthly Wages-USA

Position

Total

Total Personnel Costs-USA


Head Count & Payroll - HaitiHead Count & Payroll - USA

!

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of Months M1 M2 M3Grout - Block $ - $ - $ - $ - $ - $ 4,742 $ 9,485 $ 18,969 $ 18,969 $ 18,969 $ 18,969 $ 18,969 $ 109,074 $ 20,677 $ 20,677 $ 20,677 Grout - Panels $ - $ - $ - $ - $ - $ 588 $ 1,176 $ 2,352 $ 2,352 $ 2,352 $ 2,352 $ 2,352 $ 13,526 $ 2,564 $ 2,564 $ 2,564 Render - Block $ - $ - $ - $ - $ - $ 7,919 $ 15,839 $ 31,678 $ 31,678 $ 31,678 $ 31,678 $ 31,678 $ 182,147 $ 34,529 $ 34,529 $ 34,529 Render - Panels $ - $ - $ - $ - $ - $ 358 $ 716 $ 1,432 $ 1,432 $ 1,432 $ 1,432 $ 1,432 $ 8,233 $ 1,561 $ 1,561 $ 1,561

Render - cip $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Block $ - $ - $ 36,617 $ 73,234 $ 109,851 $ 109,851 $ 109,851 $ 109,851 $ 109,851 $ 109,851 $ 109,851 $ 109,851 $ 988,663 $ 119,738 $ 119,738 $ 119,738

6" Panels $ - $ - $ - $ 8,246 $ 8,246 $ 8,246 $ 8,246 $ 8,246 $ 8,246 $ 8,246 $ 8,246 $ 8,246 $ 74,210 $ 8,988 $ 17,975 $ 17,975 7 1/2" Panels $ - $ - $ - $ 9,902 $ 9,902 $ 9,902 $ 9,902 $ 9,902 $ 9,902 $ 9,902 $ 9,902 $ 9,902 $ 89,114 $ 10,793 $ 21,585 $ 21,585

Cast in Place CLC $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Licensee Revenue $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ - $ - $ 36,617 $ 91,381 $ 127,998 $ 141,606 $ 155,214 $ 182,430 $ 182,430 $ 182,430 $ 182,430 $ 182,430 $ 1,464,966 $ 198,849 $ 218,629 $ 218,629 Grout - Block $ - $ - $ - $ - $ - $ 2,448 $ 4,895 $ 9,791 $ 9,791 $ 9,791 $ 9,791 $ 9,791 $ 56,296 $ 9,791 $ 9,791 $ 9,791 Grout - Panels $ - $ - $ - $ - $ - $ 304 $ 607 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 6,981 $ 1,214 $ 1,214 $ 1,214 Render - Block $ - $ - $ - $ - $ - $ 3,960 $ 7,919 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 91,074 $ 15,839 $ 15,839 $ 15,839 Render - Panels $ - $ - $ - $ - $ - $ 179 $ 358 $ 716 $ 716 $ 716 $ 716 $ 716 $ 4,117 $ 716 $ 716 $ 716

Render - cip $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Block $ - $ - $ 20,678 $ 41,356 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 558,304 $ 62,034 $ 62,034 $ 62,034

6" Panels $ - $ - $ - $ 5,486 $ 5,486 $ 5,486 $ 5,486 $ 5,486 $ 5,486 $ 5,486 $ 5,486 $ 5,486 $ 49,370 $ 5,486 $ 10,971 $ 10,971 7 1/2" Panels $ - $ - $ - $ 6,590 $ 6,590 $ 6,590 $ 6,590 $ 6,590 $ 6,590 $ 6,590 $ 6,590 $ 6,590 $ 59,306 $ 6,590 $ 13,179 $ 13,179


$ - $ - $ 20,678 $ 53,431 $ 74,109 $ 80,999 $ 87,889 $ 101,668 $ 101,668 $ 101,668 $ 101,668 $ 101,668 $ 825,446 $ 101,668 $ 113,743 $ 113,743 Grout - Block $ - $ - $ - $ - $ - $ 2,295 $ 4,589 $ 9,179 $ 9,179 $ 9,179 $ 9,179 $ 9,179 $ 52,778 $ 10,886 $ 10,886 $ 10,886 Grout - Panels $ - $ - $ - $ - $ - $ 285 $ 569 $ 1,138 $ 1,138 $ 1,138 $ 1,138 $ 1,138 $ 6,545 $ 1,350 $ 1,350 $ 1,350 Render - Block $ - $ - $ - $ - $ - $ 3,960 $ 7,919 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 91,074 $ 18,690 $ 18,690 $ 18,690 Render - Panels $ - $ - $ - $ - $ - $ 179 $ 358 $ 716 $ 716 $ 716 $ 716 $ 716 $ 4,117 $ 845 $ 845 $ 845

Render - cip $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Block $ - $ - $ 15,939 $ 31,878 $ 47,818 $ 47,818 $ 47,818 $ 47,818 $ 47,818 $ 47,818 $ 47,818 $ 47,818 $ 430,359 $ 57,704 $ 57,704 $ 57,704

6" Panels $ - $ - $ - $ 2,760 $ 2,760 $ 2,760 $ 2,760 $ 2,760 $ 2,760 $ 2,760 $ 2,760 $ 2,760 $ 24,840 $ 3,502 $ 7,004 $ 7,004 7 1/2" Panels $ - $ - $ - $ 3,312 $ 3,312 $ 3,312 $ 3,312 $ 3,312 $ 3,312 $ 3,312 $ 3,312 $ 3,312 $ 29,808 $ 4,203 $ 8,406 $ 8,406


$ - $ - $ 15,939 $ 37,950 $ 53,890 $ 60,608 $ 67,326 $ 80,761 $ 80,761 $ 80,761 $ 80,761 $ 80,761 $ 639,520 $ 97,180 $ 104,885 $ 104,885 Grout - Block $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458 Grout - Panels $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458 Render - Block $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458 Render - Panels $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458

Render - cip $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458 Block $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458

6" Panels $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458 7 1/2" Panels $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458

Cast in Place CLC $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458 Licensee Revenue $ 54,509 $ 3,752 $ 3,330 $ 3,909 $ 3,713 $ 4,330 $ 4,052 $ 4,106 $ 4,106 $ 4,481 $ 4,106 $ 4,106 $ 98,502 $ 4,989 $ 5,478 $ 3,458

$ 545,093 $ 37,522 $ 33,305 $ 39,095 $ 37,132 $ 43,303 $ 40,518 $ 41,062 $ 41,062 $ 44,807 $ 41,062 $ 41,062 $ 985,023 $ 49,892 $ 54,776 $ 34,576 Grout - Block $ -54,509 $ -3,752 $ -3,330 $ -3,909 $ -3,713 $ -2,036 $ 538 $ 5,073 $ 5,073 $ 4,698 $ 5,073 $ 5,073 $ -45,724 $ 5,897 $ 5,408 $ 7,428 Grout - Panels $ -54,509 $ -3,752 $ -3,330 $ -3,909 $ -3,713 $ -4,046 $ -3,483 $ -2,968 $ -2,968 $ -3,343 $ -2,968 $ -2,968 $ -91,958 $ -3,639 $ -4,128 $ -2,108 Render - Block $ -54,509 $ -3,752 $ -3,330 $ -3,909 $ -3,713 $ -371 $ 3,868 $ 11,733 $ 11,733 $ 11,358 $ 11,733 $ 11,733 $ -7,429 $ 13,701 $ 13,212 $ 15,232 Render - Panels $ -54,509 $ -3,752 $ -3,330 $ -3,909 $ -3,713 $ -4,151 $ -3,694 $ -3,390 $ -3,390 $ -3,765 $ -3,390 $ -3,390 $ -94,386 $ -4,144 $ -4,633 $ -2,613

Render - cip $ -54,509 $ -3,752 $ -3,330 $ -3,909 $ -3,713 $ -4,330 $ -4,052 $ -4,106 $ -4,106 $ -4,481 $ -4,106 $ -4,106 $ -98,502 $ -4,989 $ -5,478 $ -3,458 Block $ -54,509 $ -3,752 $ 12,609 $ 27,969 $ 44,104 $ 43,487 $ 43,766 $ 43,711 $ 43,711 $ 43,337 $ 43,711 $ 43,711 $ 331,857 $ 52,715 $ 52,227 $ 54,247

6" Panels $ -54,509 $ -3,752 $ -3,330 $ -1,149 $ -953 $ -1,570 $ -1,292 $ -1,346 $ -1,346 $ -1,721 $ -1,346 $ -1,346 $ -73,662 $ -1,487 $ 1,527 $ 3,547 7 1/2" Panels $ -54,509 $ -3,752 $ -3,330 $ -597 $ -401 $ -1,018 $ -740 $ -794 $ -794 $ -1,169 $ -794 $ -794 $ -68,694 $ -786 $ 2,929 $ 4,949

Cast in Place CLC $ -54,509 $ -3,752 $ -3,330 $ -3,909 $ -3,713 $ -4,330 $ -4,052 $ -4,106 $ -4,106 $ -4,481 $ -4,106 $ -4,106 $ -98,502 $ -4,989 $ -5,478 $ -3,458 Licensee Revenue $ -54,509 $ -3,752 $ -3,330 $ -3,909 $ -3,713 $ -4,330 $ -4,052 $ -4,106 $ -4,106 $ -4,481 $ -4,106 $ -4,106 $ -98,502 $ -4,989 $ -5,478 $ -3,458

$ -545,093 $ -37,522 $ -17,365 $ -1,144 $ 16,757 $ 17,305 $ 26,808 $ 39,699 $ 39,699 $ 35,954 $ 39,699 $ 39,699 $ -345,503 $ 47,288 $ 50,109 $ 70,309

Year 1

Products

Sub Total

Revenue

Products

Sub Total

Cost of Goods Sold

Products

Sub Total

Net Profit

Products

Sub Total

Gross Profit

Products

Sub Total

Operating Expenses

"

Grout - BlockGrout - PanelsRender - BlockRender - Panels

Render - cipBlock

6" Panels7 1/2" Panels

Cast in Place CLCLicensee Revenue


Render - cipBlock




Render - cipBlock




Render - cipBlock




Render - cipBlock



Products

Sub Total

Revenue

Products

Sub Total

Cost of Goods Sold

Products

Sub Total

Net Profit

Products

Sub Total

Gross Profit

Products

Sub Total

Operating Expenses

M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of Months Sum of Months Sum of Months Sum of Months $ 20,677 $ 20,677 $ 20,677 $ 20,677 $ 20,677 $ 20,677 $ 20,677 $ 20,677 $ 20,677 $ 248,120 $ 258,364 $ 258,364 $ 258,364 $ 2,564 $ 2,564 $ 2,564 $ 2,564 $ 2,564 $ 2,564 $ 2,564 $ 2,564 $ 2,564 $ 30,768 $ 32,038 $ 32,038 $ 32,038 $ 34,529 $ 34,529 $ 34,529 $ 34,529 $ 34,529 $ 34,529 $ 34,529 $ 34,529 $ 34,529 $ 414,345 $ 431,451 $ 431,451 $ 431,451 $ 1,561 $ 1,561 $ 1,561 $ 1,561 $ 1,561 $ 1,561 $ 1,561 $ 1,561 $ 1,561 $ 18,729 $ 19,502 $ 19,502 $ 19,502 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 119,738 $ 119,738 $ 119,738 $ 119,738 $ 119,738 $ 119,738 $ 119,738 $ 119,738 $ 119,738 $ 1,436,857 $ 1,496,177 $ 1,496,177 $ 1,496,177 $ 17,975 $ 17,975 $ 17,975 $ 17,975 $ 17,975 $ 17,975 $ 17,975 $ 17,975 $ 17,975 $ 206,715 $ 224,607 $ 224,607 $ 224,607 $ 21,585 $ 21,585 $ 21,585 $ 21,585 $ 21,585 $ 21,585 $ 21,585 $ 21,585 $ 21,585 $ 248,231 $ 269,717 $ 269,717 $ 269,717 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 218,629 $ 218,629 $ 218,629 $ 218,629 $ 218,629 $ 218,629 $ 218,629 $ 218,629 $ 218,629 $ 2,603,765 $ 2,731,856 $ 2,731,856 $ 2,731,856 $ 9,791 $ 9,791 $ 9,791 $ 9,791 $ 9,791 $ 9,791 $ 9,791 $ 9,791 $ 9,791 $ 117,488 $ 117,488 $ 117,488 $ 117,488 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 1,214 $ 14,569 $ 14,569 $ 14,569 $ 14,569 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 15,839 $ 190,067 $ 190,067 $ 190,067 $ 190,067 $ 716 $ 716 $ 716 $ 716 $ 716 $ 716 $ 716 $ 716 $ 716 $ 8,591 $ 8,591 $ 8,591 $ 8,591 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 62,034 $ 744,405 $ 744,405 $ 744,405 $ 744,405 $ 10,971 $ 10,971 $ 10,971 $ 10,971 $ 10,971 $ 10,971 $ 10,971 $ 10,971 $ 10,971 $ 126,167 $ 131,652 $ 131,652 $ 131,652 $ 13,179 $ 13,179 $ 13,179 $ 13,179 $ 13,179 $ 13,179 $ 13,179 $ 13,179 $ 13,179 $ 151,559 $ 158,148 $ 158,148 $ 158,148 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 113,743 $ 113,743 $ 113,743 $ 113,743 $ 113,743 $ 113,743 $ 113,743 $ 113,743 $ 113,743 $ 1,352,845 $ 1,364,920 $ 1,364,920 $ 1,364,920 $ 10,886 $ 10,886 $ 10,886 $ 10,886 $ 10,886 $ 10,886 $ 10,886 $ 10,886 $ 10,886 $ 130,632 $ 140,876 $ 140,876 $ 140,876 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 16,199 $ 17,469 $ 17,469 $ 17,469 $ 18,690 $ 18,690 $ 18,690 $ 18,690 $ 18,690 $ 18,690 $ 18,690 $ 18,690 $ 18,690 $ 224,278 $ 241,384 $ 241,384 $ 241,384 $ 845 $ 845 $ 845 $ 845 $ 845 $ 845 $ 845 $ 845 $ 845 $ 10,138 $ 10,911 $ 10,911 $ 10,911 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 57,704 $ 57,704 $ 57,704 $ 57,704 $ 57,704 $ 57,704 $ 57,704 $ 57,704 $ 57,704 $ 692,452 $ 751,772 $ 751,772 $ 751,772 $ 7,004 $ 7,004 $ 7,004 $ 7,004 $ 7,004 $ 7,004 $ 7,004 $ 7,004 $ 7,004 $ 80,548 $ 92,955 $ 92,955 $ 92,955 $ 8,406 $ 8,406 $ 8,406 $ 8,406 $ 8,406 $ 8,406 $ 8,406 $ 8,406 $ 8,406 $ 96,672 $ 111,569 $ 111,569 $ 111,569 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 104,885 $ 104,885 $ 104,885 $ 104,885 $ 104,885 $ 104,885 $ 104,885 $ 104,885 $ 104,885 $ 1,250,919 $ 1,366,936 $ 1,366,936 $ 1,366,936 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 4,302 $ 3,458 $ 3,928 $ 3,832 $ 3,928 $ 3,458 $ 4,302 $ 3,458 $ 4,381 $ 48,970 $ 45,519 $ 44,698 $ 44,698 $ 43,021 $ 34,576 $ 39,276 $ 38,321 $ 39,276 $ 34,576 $ 43,021 $ 34,576 $ 43,810 $ 489,697 $ 455,190 $ 446,979 $ 446,979 $ 6,584 $ 7,428 $ 6,958 $ 7,054 $ 6,958 $ 7,428 $ 6,584 $ 7,428 $ 6,505 $ 81,662 $ 95,357 $ 96,178 $ 96,178 $ -2,952 $ -2,108 $ -2,578 $ -2,482 $ -2,578 $ -2,108 $ -2,952 $ -2,108 $ -3,031 $ -32,771 $ -28,050 $ -27,229 $ -27,229 $ 14,388 $ 15,232 $ 14,762 $ 14,858 $ 14,762 $ 15,232 $ 14,388 $ 15,232 $ 14,309 $ 175,309 $ 195,865 $ 196,687 $ 196,687 $ -3,457 $ -2,613 $ -3,083 $ -2,987 $ -3,083 $ -2,613 $ -3,457 $ -2,613 $ -3,536 $ -38,832 $ -34,608 $ -33,787 $ -33,787 $ -4,302 $ -3,458 $ -3,928 $ -3,832 $ -3,928 $ -3,458 $ -4,302 $ -3,458 $ -4,381 $ -48,970 $ -45,519 $ -44,698 $ -44,698 $ 53,402 $ 54,247 $ 53,777 $ 53,872 $ 53,777 $ 54,247 $ 53,402 $ 54,247 $ 53,323 $ 643,482 $ 706,253 $ 707,074 $ 707,074 $ 2,702 $ 3,547 $ 3,077 $ 3,172 $ 3,077 $ 3,547 $ 2,702 $ 3,547 $ 2,623 $ 31,578 $ 47,436 $ 48,258 $ 48,258 $ 4,104 $ 4,949 $ 4,479 $ 4,574 $ 4,479 $ 4,949 $ 4,104 $ 4,949 $ 4,025 $ 47,702 $ 66,050 $ 66,871 $ 66,871 $ -4,302 $ -3,458 $ -3,928 $ -3,832 $ -3,928 $ -3,458 $ -4,302 $ -3,458 $ -4,381 $ -48,970 $ -45,519 $ -44,698 $ -44,698 $ -4,302 $ -3,458 $ -3,928 $ -3,832 $ -3,928 $ -3,458 $ -4,302 $ -3,458 $ -4,381 $ -48,970 $ -45,519 $ -44,698 $ -44,698 $ 61,864 $ 70,309 $ 65,609 $ 66,564 $ 65,609 $ 70,309 $ 61,864 $ 70,309 $ 61,076 $ 761,222 $ 911,746 $ 919,957 $ 919,957

Year 2 Year 3 Year 4 Year 5


Profit & Loss Projection Profit & Loss Projection

Haiti Plant - Cash Flow

!

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of Months M1 M2 M3

$ -545,093 $ -37,522 $ -17,365 $ -1,144 $ 16,757 $ 17,305 $ 26,808 $ 39,699 $ 39,699 $ 35,954 $ 39,699 $ 39,699 $ -345,503 $ 47,288 $ 50,109 $ 70,309

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ - $ -20,678 $ -32,753 $ -20,678 $ -6,890 $ -6,890 $ -13,780 $ - $ - $ - $ - $ - $ -101,668 $ - $ - $ -

$ - $ -20,678 $ -32,753 $ -20,678 $ -6,890 $ -6,890 $ -13,780 $ - $ - $ - $ - $ - $ -101,668 $ - $ - $ - $ 720,000 $ 720,000 $ 720,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 720,000 $ - $ - $ -

$ 174,907 $ -58,200 $ -50,118 $ -21,822 $ 9,868 $ 10,415 $ 13,028 $ 39,699 $ 39,699 $ 35,954 $ 39,699 $ 39,699 $ 272,829 $ 47,288 $ 50,109 $ 70,309

$ - $ 174,907 $ 116,707 $ 66,589 $ 44,766 $ 54,634 $ 65,049 $ 78,077 $ 117,776 $ 157,476 $ 193,430 $ 233,130 $ 233,130 $ 272,829 $ 320,118 $ 370,227

$ 174,907 $ 116,707 $ 66,589 $ 44,766 $ 54,634 $ 65,049 $ 78,077 $ 117,776 $ 157,476 $ 193,430 $ 233,130 $ 272,829 $ 272,829 $ 320,118 $ 370,227 $ 440,536

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Net Profit

Year 1

Sub TotalWorking Capital

Total Working Capital

Sub TotalChange in Inventory

Sub Total

Sub TotalInvestment

Sub TotalNet Cash Flow

Sub TotalBeginning Cash

Sub TotalEnding Cash

Sub TotalZero

Sub Total

Haiti Plant - Cash Flow

"

Net ProfitSub Total

Working Capital

Total Working Capital

Sub TotalChange in Inventory

Sub Total

Sub TotalInvestment

Sub TotalNet Cash Flow

Sub TotalBeginning Cash

Sub TotalEnding Cash

Sub TotalZero

Sub Total

M4 M5 M6 M7 M8 M9 M10 M11 M12 Sum of Months Sum of Months Sum of Months Sum of Months

$ 61,864 $ 70,309 $ 65,609 $ 66,564 $ 65,609 $ 70,309 $ 61,864 $ 70,309 $ 61,076 $ 761,222 $ 911,746 $ 919,957 $ 919,957

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 113,743

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 113,743 $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

$ 61,864 $ 70,309 $ 65,609 $ 66,564 $ 65,609 $ 70,309 $ 61,864 $ 70,309 $ 61,076 $ 761,222 $ 911,746 $ 919,957 $ 1,033,701

$ 440,536 $ 502,401 $ 572,710 $ 638,319 $ 704,884 $ 770,493 $ 840,802 $ 902,667 $ 972,976 $ 972,976 $ 1,871,560 $ 2,791,518 $ 3,711,475

$ 502,401 $ 572,710 $ 638,319 $ 704,884 $ 770,493 $ 840,802 $ 902,667 $ 972,976 $ 1,034,052 $ 1,034,052 $ 1,945,798 $ 2,865,755 $ 3,899,455

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Year 5Year 2 Year 3 Year 4

Cash Flow Table Cash Flow Table


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Appendix I: Competitor Analysis

Factor TSC Global Strength Weakness Competitor A Competitor B Importance to Customer

Products

•CLC Wall Products and the installation thereof. •We are a manufacturer and a contractor building walls using CLC blocks, panels and poured in place with forms. •CLC can also be used for flat roof applications in lieu of HyPar roofs.

•Higher quality Than Traditional Building Materials•Perception That new Technology Is Often better•We have experienced partners very familiar with work in developing countries and expert at manufacture of CLC products and construction of all types. •Having both a manufacturing and contracting operation increases the opportunity for profit. We can sell our product and install it for the customer. •We can also sell construction work and include our product in the specifications.

•new Material used Infrequently in Haiti To Date•needs Approval by Haitian building Dept. & Other Contracting Authorities•Our construction experience is primarily from one partner. If he leaves the company for any reason, we immediately lose our institutional knowledge. •Perception there are few alternatives to CMu.

•Sell Inferior block, but...•Accepted by Local Builders and Construction Professionals.•block Plant Operating With Established Customer base.

•Same as A and ....•no Production Capacity•Lengthy Delays in Meeting Orders•urban Location with no Room for Expansion to Meet Demand•Old & Poorly Maintained Equipment•High Dependence on Hand Labor for Material Handling

•1- Critical

Price

•CLC Wall Assemblies are about the Same Cost as CMu/Confined Masonry

•Better Quality, Safer, More Durable, Stronger for Same Price per Square Meter of Finished Wall

•Individual CLC blocks are Smaller than Standard CMus•Cost of Each CLC Block is Higher than Each CMu•Price Comparisons Tend to be Cost of block vs. Cost of Competing block Instead of Cost of Construction per Square Meter, Consumer Will Have to be Educated

•Competition Has commoditized the Price for CMu, •Producers May Cut Price to undermine CLC Sales

•Same as A •1- Critical

Quality

•Quality CLC Will Be the Highest quality Concrete Wall Product in the Market

•High Demand From Owners With the Ability to Pay – nGO’s, Developers•Opportunity to be Specified in Construction Plans •Only Licensed Reps & builders Allowed to Sell and use Products

•Demand Could Create Lapses in QC•Licensees Require Monitoring & Inspection to Maintain quality Which Increases Overhead Cost•Builders and Tradesmen Must be Trained in Proper Assembly & Finishing Which Will Increase Initial Overhead Cost (After Demand Established, Training Will Be For Fee)•Customers May Perceive Licensing & Training a net negative and Revert to Traditional CMu/Confined Masonry

•They do make structural grade blocks. qC is poor. Final product is not high performing compared to CLC. •There is a high percentage of waste from broken block. •Production site is cramped, messy, dangerous and inefficient.•Machinery is not kept up so it breaks down frequently. •Pickup of product by customer is nearly impossible due to traffic congestion.•Roads are nearly impassable except in the late evening and early morning.

•Same as A and .....•Traffic in jacmel is much lighter than Port-au-Prince and is not a significant hindrance to pickup and delivery.

•1- Critical


Intellectual Property

•CLC block Design has Patent Pending•Grout and Rendering Materials Could be Privately Labeled•Customers Will Be Trained in CLC Building Methods

•untrained and uncertified competitors will not know Trade Secrets, •Patents Can be Enforced in Haitian Courts•Grout and Renders Are Pre-Packaged and Provide Profit Center for TSCG

•Obtaining & Defending Patent Is Expensive•Haitian Courts May be biased Against Foreign Companies•There are Many versions of CLC blocks Already In The Marketplace World-Wide so Patent May Fail•Slight Modifications in block Design May Defeat Patent•Raw Materials Are Readily Available in Haiti and There Are Substitutes for Our Proprietary Additives•Employees With Access to Trade Secrets May Defect or Start Their Own Companies

•CMu is open source product•Machinery is readily available

•Same as A •5 – very Low

Production Equipment•new and Lightly used, Well Maintained Manufacturing Equipment

•More Consistent Production•Fewer Breakdowns•Lower Maintenance Costs•Safer Work Area for EE’s

•Capital Cost Must be Amortized Into CLC Price

•Equipment is Old and Poorly Maintained•Frequent Repairs and breakdowns Interrupt Production•unsafe Working Conditions for EE’s, but: Equipment is paid for

•Same as A •2- High



barriers to Entry

•TSCG has paid the price of entry into the market in Haiti by 18 months of travel, establishing logistics, project work and networking with nGO’s, Multi-lateral donors and GoH

•External competitors are now late to the game. •Local actors are familiar with our company and believe we are in Haiti permanently.•Our visibility in Haiti is high. Potential customers see us as viable in the Haitian market. •We have established relationships with Haitian partners who can give us access to banks and the GoH. •We have a group of trained, well qualified and hard working Haitians.

•We lack start-up capital and find it difficult to sustain our presence through frequent travel to Haiti. •We lack an office on the ground in Haiti.•We don’t yet have TSCG staff in country that can keep our visibility high when company principals are back in the States. •We have only one project completed so far so we lack product for potential customers to view and test. •We don’t have any CLC product in place in Haiti. •Getting goods through customs is still a lengthy process. •We lack capital to spend on setting up a CLC R&D and production facility.•We must establish a Haitian corporation, which is another, cost and will take a few months to get done.

•no barriers to entry for their core product. However there are significant barriers to market expansion or knocking off our products. •There is a general lack of investment capital in Haiti even local companies are starved for cash. •Our CLC block product has a Patent Pending, which gives us some protection from unlicensed duplication. •Some of the processes and additives are proprietary and cannot be sourced in Haiti.

•Same as A • 5- very Low

Insurance & bonding

•TSCG will need domestic and international property, marine and liability insurance.•Some large construction jobs will require bonding.

•Insurance gives us hedge against some risk.•There is an existing market for Property/Liability insurance in Haiti. Ocean cargo coverage should be easier to obtain. •The partners may be willing to go without insurance in the opening phase of operations.

•As a new company with weak financials, we may not be able to purchase insurance. •bonding will be difficult to obtain. We will have to have jv partners who can be bonded to secure larger jobs. •Fixed location property insurance is going to be expensive because of the earthquake risk. •Adds to overhead cost and is likely not a part of our competitors’ operating expenses. •The bonding ability of Haitian banks is very poor. There are no Surety Companies in Haiti. All bonds are written through banks with $250,000 max and 100% cash collateral required.

•Since many block manufacturers were ruined by the earthquake, it is doubtful they carry and property coverage.

•Same as A

•1 – Critical for some larger customers who require bonding of their projects.•5 – very Low for most customers


Selection

•We have three basic products in CLC: blocks, pre-cast panels & cast-in-place walls.•CLC can easily be used for ornamental architectural shapes.

•Our product is the highest quality concrete wall system on the market. •CLC can be configured in an infinite number of ways to meet design needs of customers. •Keeping block shapes limited reduces capital costs.•Forms for ornamental architectural shapes are relatively simple to make and low cost. •There is a ready market for cement ornamental shapes as they are commonly sold in Haiti. Examples: railings, facades, outdoor benches and tables, statues.

•Different block Sizes Require Different Head Forms – Adds to Capital Cost• Presently Have Only One block Size, 6” thickness.•The 6” block variety is suitable for most construction. •Taller walls, over 12’, may require an 8” block.

•3 varieties of blocks: 6”, 8” & 12” plus some ornamental style blocks made in forms.


Service

•Service of products is a non-issue since they do not require any upkeep by TSCG.•Warranty work is part of our offering to customers.•Ongoing training of licensees is part of our offering to them.

•There is virtually no service component to the product, which reduces overhead and financial risk. •Warranty will be limited to one year for materials and labor, which reduces financial risk. •Licensing keeps our customers closer to TSCG so we can control the quality of their output and use them as an ongoing customer base for ancillary products like grout as well as new product offerings.

•Working with licensees adds to our overhead. •Licensees add to our financial risk if they perform their work poorly or make poor quality block. •Our reputation and insurance is exposed to losses from licensees since we are the product manufacturer or in the chain of distribution. •We must include insurance and provide a warranty which adds to our product cost •Could be difficult to compete with manufacturers who do not have these overhead items.

•just sell block. no service required. no warranty given. Will sell to all comers.

•Same as A •4- Low



Reliability

•Ability to meet customer demand is very important to establishing our market presence and create market share.•TSCG must be able to meet customer demand for product in a timely fashion. •We must complete projects on time and under budget.

•We have the methods and experience to meet customer demand and expand our production as needed. •Our experience in the Haiti marketplace plus our project management and construction experience makes it possible for us to be a reliable vendor to our customers. •We have potential partners with good locations for production and distribution and they are willing to give space at lower than market rents. •The locations have on-site raw material resources which greatly reduce cost of final product. •The GoH, bi-lateral and Multi-lateral donors are motivated to help us establish our company. •We know the logistics challenges and can cope with them at least as well as our competitors.•TSCG’s work ethic is typically American – that is, super driven, work 24/7, produce around the clock. We have been able to transfer that ethic effectively to our workers. •Plant cash flows are sufficient enough to provide capital for expansion reducing the need for new cash infusions from investors.

•We must have substantial capital investment in order to start production at a sufficient level to meet anticipated demand.•Investors will likely be from philanthropic, social investor class which is more limited in size.• We must find a location that is close to raw materials needed and transportation network. Transportation of sand and cement to our production site can add costs that make our block too expensive. •Our production site must be ideal but land is at a premium cost for purchase or rent.•Logistics is the key to success in Haiti. Moving people and materials around the country is slow and expensive. There is little chance the Haitian infrastructure will improve in the near future – in fact it will get worse as the economy expands and population grows.

•There are few block making operations in our target markets. They cannot meet demand resulting in unhappy customers whose projects are delayed.•Every company has the same logistics challenges as TSCG. It is a level playing field. •Haitian companies and their employees typically work on “Haitian Time”. They have a lackadaisical attitude about schedules, time lines and deadlines. Employees are not motivated by deadlines or production schedules. Customers are often frustrated by these attitudes especially customers in our target market that come from a more “Western” driven ethic.

•Cannot meet customer demand.•Inferior product to CLC block. •Waste from broken and ill formed block is a drag on profit. •CMu has a very poor reputation in the building community. Everyone knows the shortcomings of CMu produced in Haiti and is suspicious of the quality of the blocks they are sold. •Construction professionals are poised to drop CMu from their designs if good alternatives are available

•1- Critical


Delivery

•Having delivery capability will give us an edge in the market.•We will sub contract delivery for now by having a ready queue of trucks standing by.

•none of our competitors delivers their product. Customers must supply their own pickup, delivery and off loading.•A few flat bed trucks with small booms can give us a big advantage in service over our competitors.•Even delivery trucks with labor to load and unload would be an advantage.•Trucks could be sub leased during slow periods or small loads providing extra income to the company.

•Trucks are another capital expense. •The traffic in Haiti is terrible. Trucks would be caught in traffic and be able to make few deliveries each day. •The roads are poor which will add to maintenance costs and overhead. •vehicles create another exposure to financial risk from accidents.

•Does not deliver •Same as A •2- High

Stability

•Market stability depends on political, social and economic stability. •TSCG company stability depends on cooperation among partners, attracting investment capital, securing plant, equipment and customers.

•The GoH is pro business and is seeking to attract direct investment especially for manufacturing businesses that employ significant numbers of Haitians and source raw materials in Haiti.•The political and social stability of Haiti is better now than it has been in 20 years or more.• Haitians are by nature resilient, hard working and easy to manage. They are eager to work and do not demand many fringe benefits.•Political Risk insurance is available through OPIC. Haiti has laws requiring compensation for businesses that are nationalized. Must be paid before nationalization is valid.

•Haiti has a very poor record of stability. The new GoH has only been in place a few months as of 1 q 2012. •The GoH is pro business and development but faces internal struggles with the entrenched bureaucracy. •TSCG is undercapitalized so there is great stress on our finances and partners. •Every company in Haiti is subject to political, social and economic instability. •Business owners are targets of crime and kidnapping.•There is animosity between the lower and upper classes. •The country has a history of lapsing into Socialism. •Everyone was terribly affected by the earthquake. The country is slowly recovering but could ultimately fail if economic and political reforms fail or another natural disaster sweeps the country.

•See Weaknesses. Every company in Haiti suffers from the weaknesses of the State and the economy.




Expertise •TSCG is expert in its market niches

•no other producer of block in Haiti has the breadth of knowledge of CLC than TSCG. There are other players who are attempting to make CLC block, but they are making it on a per project basis not as a separate business (e.g. WHA project with Methodists). There are no producers of CLC wall panels or poured in place CLC walls.

•CLC still requires some R&D and refinement for the specifics of the Haitian environment and marketplace.

•no expertise in our niche •Same as A•1 – Critical; especially for a new technology first in the marketplace

Company Reputation•TSCG already have a favorable reputation in the Haitian marketplace

•Many of the actors in Haiti already know us by direct contact or by reputation. They are more likely to trust us than another company who has just entered the country.•We have strong relationships with current Haitian partners. They trust us and are committed to assisting us with access to capital, marketing and production.•TSCG has an extensive network of supporters in the uSA. This is a source of engineering support as well as management advice, business planning and capital.

•We are still a small, start-up company who has only been in Haiti about 24 months. •We don’t have a portfolio of projects we can use to solicit more business. •Investment capital in the uSA is difficult to secure. being a new company makes it difficult to access banks for capital. •none of the partners has the financial resources to fund operations and growth into new markets like Haiti.

•Well-established local block maker. just another producer with nothing of value to add except they make a product that is in short supply – structural grade CMu.

•It is common knowledge that the owner is ill and will soon shut down operations.

•2- High


location - Company operations & Management

•Management is done from Hq in Denver, CO and in a local office/production site in Haiti

•We can manage operations in multiple countries from our location in Denver. •We have the space for offices and warehouse/distribution as needed. •Operating out of the uSA gives us access to investment capital that would not be available in Haiti. •The partners are all long time residents of Colorado with good networks in the business community.• The Company has many qualified advisors who are a ready source of management advice and pool of investors. •We have cultivated a small group of potential employees who can be tapped for foreign travel allowing 2 of the 3 partners to spend less time overseas on projects and more time marketing. •Our block form maker is a local Colorado company. •There is a blending operation in Denver that could be hired to make proprietary cement mixes for CLC.•TSCG can leverage its internet presence for advertising, communication with customers and soliciting bid requests. Haitian companies are not internet savvy and do not communicate electronically. They do not have web sites, cannot accept bid requests or accept payment by PayPal or other internet based payment methods.

•Working overseas is a challenge. Travel by partners and staff creates health and family issues. •There are many fraudulent actors operating in Haiti. This requires intense monitoring of our operations in country and trusted Haitian partners that can steer us away from problems.

•As a local Haitian company, they have an advantage over TSCG because they are established in business, sell a known product, have big demand for structural block, have strong ties to business community & government, have established client base, know how to navigate social and political issues, may have easier access to bank loans.

•Same as A but operate in a much smaller market in jacmel. There may not be sufficient business in jacmel to make a profit.

•4- Low



location - Production operations

•Specific sites will be selected for producing blocks and panels. Other job sites according to construction contracts.

•Manufacturing sites require only low capital outlay and simple, easily acquired machinery and equipment. •Wall panels can be manufactured on a job site with very low cost forms. •Cast-in-place CLC walls are made at each job site. This all equals mobility of operations so we can respond to opportunities in different parts of Haiti with minimal time and capital outlay. •Forms for CLC blocks are easily disassembled and transported to other sites. •Batch making and mixing equipment is small capacity and very mobile. •Production operations can be disassembled and moved in a matter of days making it easier for us to respond to demand in different areas of Haiti.

•Although we believe we have a superior location on the land of our Haitian partner, we do not know for sure if it and he will work out until we have a signed lease.•We must find the right location for our first base of operations. It must be close to supply of sand and cement and water. It must also have easy access to main roads. There must be easy access to the site for material delivery. •jobs must be of sufficient scale to make moving CLC production equipment and forms to the job site. •jacmel is a small market with little construction underway. There isn’t enough demand there to justify a block plant of its own.

•Blocks are sold from manufacturing and storage locations. •Only one location for distribution. •Their equipment is not mobile.•Their location in Petion-ville is terrible for pickup & delivery. •no parking and streets choked with traffic during daylight hours. •no room for expansion of production.

•Same as A•Their location is downtown with no room for expansion. The lot is small with little room for inventory. •jacmel is three hours from Port-au-Prince over a mountain road. Makes delivery of product to the biggest market in the country difficult and

•2- High

Sales Method

•Blocks sold by piece from production site. •Projects sold by professional sales people starting with our partners as sales force.•We will hire a full time salesman for the Haiti office who will report to one of the partners. He will do both inside and outside sales.•Repeat sales from licensee training, ancillary products like high strength grout and renders.•Licensees purchase forms from TSCG.•Revenue from license fees and trainings.

•Professional sales by company principals is by far the most effective method.•Two of our partners have extensive experience in marketing and sales. Repeat sales are the lowest cost source of new business and this is integral to our business plan. •The high tech image of our products gives us the opportunity for additional margin as compared to CMu and regular concrete.•Licensees must come to us for forms, raw materials and improvements in technology.

•Sales depend on ability of partners to travel frequently to Haiti. •We have no professional sales force in country yet.

•Blocks are sold from manufacturing and storage locations. •Only one location for distribution. •Their equipment is not mobile

•Same as A •3- Average


Credit Policies

•TSCG will sell for cash, cheque, credit card. •Our business model does not support receivables so we will have to operate on COD basis for all but the most high profile, financially sound and important customers.

•Many suppliers in Haiti do not take credit cards or sell on commercial account. •Builders need to conserve cash and we can help them by accepting credit cards. •nGO’s have the ability to pay cash.• If we do have to take on accounts receivable, we may be able to factor them if cash becomes a problem.

•Credit cards add to the cost of operations because of their fees.•Accounts receivable can be difficult to collect.• It will be difficult to do credit checks on Haitian companies and individuals adding to financial risk.• Many Haitian companies are under great financial stress because of the earthquake and political instability. They have suffered for two years from a very slow demand and destruction of their capital & human assets in the quake. •nGO’s are slow to pay their accounts. •nGO payment terms can be unreasonable and put a drag on cash flow and profit.•We may not be able to enforce a “no A/R” policy creating big cash needs as we wait for payment. •Factoring receivables puts a dent in earnings.

•Sell for cash only. •May have commercial accounts for largest customers like developers and nGO’s. •With better established businesses and, presumably, better working capital positions, they may be able to hold substantial A/R while we cannot.


Advertising

•Media style advertising is not a priority. Advertising will be done by word of mouth, reputation and client building.•Will have an internet presence via our web site and social media.

•Overhead cost is reduced. •Internet advertising and promotion is very low cost. We handle our web site and social media internally which keeps overhead low. •Media marketing in Haiti is still in its infancy so few customers rely on it for information. •Our nGO customers have ready access to the internet.

•It may take longer to establish demand for the product. •Media advertising can bring quicker acceptance and credibility. •Internet in Haiti is slow and not widely available to locals.

•As an established company, they need to do little media style advertising and already have established client base. •They do not have a web presence.

•Same as A •4- Low

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