Global Sales and Purchasing™

(“GSP™”)

A Managed Service Program to increase the Net Profitability of Corporations by incorporating International Sales and Purchasing.

What is GSP™ ?

• Managed services is the practice of outsourcing on a proactivebasis management responsibilities and functions and a strategic method for improving operations and cutting expenses. (Wikipedia)

• Supply-chain management has been defined as the “design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.” (Wikipedia)

• GSP™ implements the proactive global aspects of the above defined concepts to select Users to improve sales, purchasing and net profits at a low and predictable cost; and with minimal increase in user overheads.

Targeted Users and the Managed Service Providers (“MSP”) executing GSP

Users:

• Small and Medium Manufacturers with limited global exposure in product sales or raw materials sourcing.

• Medium sized Sales Organizations with limited global exposure product sourcing and sales of their products.

MSP team members to serve the Users:

• Texas-Carolina Inc (“TCI”), with its worldwide associates and network of possibly required suppliers in International Banking, Trade Finance, Air Freight, Sea Freight, Overland transportation, Customs Broking, Clearing, Expediting, Lawyers, Goods Insurance, QC Inspection, Duty Free Zone warehousing, Freight Consolidation, Packaging and other services.

MSP actions on behalf of GSP™ users:

• Market Research of manufactured products worldwide and marketing and sales wherever economically possible;

• Sourcing raw materials for manufacturing or expanded and/or better priced product range for the materials supply chain worldwide;

• Executing on International Compliance, Logistics, Payables, Receivables and Financing requirements.

• Budget Control to increase corporate profitability as much as 10%without payroll, overhead or capital increases by closing an Opportunity Gap for users.

Combined Impact of GSP™ on Sales, Purchasing and Net Profitability of a Manufacturer

Sales Revenue Cost of Raw Materials Net Profit

Without GSP $5,000,000 $2,000,000 $750,000

With GSP: Year 1 5,250,000 1,995,000 955,000

With GSP: Year 2 5,512,500 1,984,500 1,175,500

Improvement $512,500 $220,500 $425,500

$5

,00

0,0

00

$2

,00

0,0

00

$7

50

,00

0

5,2

50

,00

0

1,9

95

,00

0

95

5,0

00

5,5

12

,50

0

1,9

84

,50

0

1,1

75

,50

0

$5

12

,50

0

$2

20

,50

0

$4

25

,50

0

Remarks on Financial Impact Table

• GSP™ reduced Raw Materials Costs as a percentage of sales from 40% to 36% of sales; an improvement of $240,000. International Sales added 5% per annum to Domestic Sales and Net Profits jumped from $750,000 to $1,270,000 – a 57% improvement!

• GSP™ costs are low and predictable and the User does not incur additional overhead or headcount or company contributions to Federal, State and Healthcare costs; thus the inevitable disproportionate increase in net profitability.

Initially End Year 1 End Year 2 Improvement

GSP ™ Sales Growth 5% 5%

Material Cost Reduction 2% 2%

Sales $5,000,000 5,250,000 5,512,500

Material Costs $2,000,000 1,995,000 1,984,500

Net Profit $750,000 955,000 1,175,500 $425,500 +57%

GSP™ is a service aimed at Manufacturers and Large Distributions groups, such as Regional Wholesalers or Independent Sales Representative Groups

• Better results are generally expected from Users of certain size with certain product type.

• Products with certain physical attributes such as a relatively low transportation cost to selling price ratio, non-perishable nature and early in a life cycle of at least three years.

• These rules are general indications and exceptions are to be expected.

General GuideLine

Manufacturers Sales Groups

AnnualRevenue

$2mm - $50mm $5mm-$50mm

Transport Ratio <15% <10%

Product Cycle >3 Years >2 Years

Perishable Products

No No

Implementing GSP™

• Step 1: Meetings are held with the prospective User so that a no charge Feasibility Study may be done and an GSP™ agreement reached where possible.

• Step 2: MSP establishes Sources, Suppliers, Product details and Customers and documents.

• Step 3: MSP briefing of all staff members involved and Implementation.

• Feasibility Study (and if positive) • Agreement on Budgeted Income & Costs

Step 1 Feasibility & Agreement

• Identification of Sources, Service Suppliers & Customers• MSP Documentation developed

Step 2 Matching Needs & Documentation

• Implementation: Staff Education and Guidance during launch

• Routine supervision and guidance, reporting to Management.

Step 3 Implementation and Reporting

Market Research, Marketing & Sales

GSP™ will on behalf of the User

• Do extensive market research to establish the widest, relevant network of customers and suppliers of goods and services according to the needs of the User.

• Potential material flow chains will be investigated and landed costs will be established.

• Transform User Sales or Procurement material to be in the correct units and language and needs of the counterparty.

• Perform the activities to close the deal by visiting, phone calls, net-meetings, emails or faxes, proving samples and other actions.

• Meticulously attend to Customer Service to ensure the satisfaction necessary for repeat business. Technical Support and Warranty are cornerstones.

Procurement

GSP™ will on behalf of the

User:

• Apply the necessary diligence to ensure reliable, punctual sources of quality, warranted product shipped properly inspected.

• Arrange for the most economical, reliable transportation and expedite shipping, transportation and clearing.

• Compile all documentation related to the purchase from Request for Quote to Purchase Order, shipping, clearing and payment instructions.

• Supervise that product is properly insured and inspected.• Follow up diligently on all requests for technical support, warranty and

claims.

Payments of Receivables, Payables, Foreign Currency, Extended Payment Terms and Trade Finance.

GSP™ will on behalf of the

User:

• Handle Account Receivables,• Arrange Credit Insurance• Arrange Trade Financing • Structure Sharia Law Compliancy• Negotiate with vendors & suppliers • Deal with foreign currency

Compliance

GSP™ will conduct compliance on behalf of the User to ensure that:

• All transactions have Office of Foreign Assets Control approval.• All international logistic and financial documentation comply

with USA Federal and State requirements; as well as with those of the counterparty’s home country.

• Various classifications are correctly stated but that values most favorable for shipping rates, foreign duties and tariffs are used.

• Inspections, Certifications and Quality Control are done to best safeguard the interests of the GSP User.

Communications, Support and Reporting

GSP™ will establish with User Internal

Departments:

• GSP™ documentation in line with current procedures. • Support arrangement for logistics, technical support,

etc and be available to User personnel at all relevant times by phone, text, email and cloud communications.

• Periodic Reporting to satisfy User Management information on progress against budgeted targets.

GSP™ Costs

Contract renewable annually

Monthly Fee Success Commission on shipment value

Program Sales $0 5.0%

Program Purchasing $0 2.5%

Other functions $2,500 0

The Next Step:A No Cost feasibility study done with a prospective User or

Meeting with a Corporation or Specialist interested in being part of our Managed Services Provider Team and work for our Users in GSP™ programs,

With questions or for the next step, please contact:

Ed BüchnerPresident: Texas-Carolina IncEdBuchner@Texas-Carolina.comwww.Texas-Carolina.com

Mobile 1-704-236-7808Office 1-704-246-6610 x 303Fax 1-704-831-5293