A United States Sales Office (“USSO™”)

A Managed Service Program to increase the Net Profitability of Corporations by expanding exports to the United States of America.

What is USSO™ ?

• Managed services is the practice of outsourcing on a proactive basis 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)

• USSO™ implements the proactive global aspects of the above defined concepts to select Users to improve their exports to the United States and net profits at a low and predictable cost; and with minimal increase in user overheads to maximize net profitability.

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

Users:

• Small and Medium Manufacturers outside the United States with limited exposure to exports to the United States.

• Medium sized Sales Organizations outside the United States with limited exposure to exports to the United States.

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 USSO™ users:

• Market Research of User products in the USA and establishing a materials distribution chain for new USA customers of the User product;

• Clearing and warehousing User product shipments into the USA and shipping into the USA channel.

• Executing on Compliance, Logistics, Payables, Receivables and Warranty requirements. USA Customer Sales and Technical Support .

• Establishing and Maintaining the USA sales distribution channel.

Remarks on Financial Impact.

• USSO™ International Sales added 5% per annum to User existing Domestic Sales and Net Profits jumped from $750,000 to $1,270,000 – a 57% improvement!

• USSO™ costs are low and predictable. The User incurs minimal overhead with no increase in headcount in the United States and with no obligation for company contributions to Federal, State and Healthcare costs. That is why there is a disproportionately high increase in net profitability relative to a small increase in total sales by the User.

Initially End Year 1 End Year 2 Improvement

USSO ™ Sales Growth 5% 5%

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

Net Profit $750,000 850,000 955,000 $205,000 27%!

USSO™ 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 Guide Line

Manufacturers Sales Groups

Annual Revenue

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

Transport Ratio <15% <10%

Product Cycle >3 Years >2 Years

Perishable Products

No No

Implementing USSO™

• Step 1: Work is done with the prospective User that a No Charge Feasibility Study may be done and an USSO™ agreement reached where possible.

• Step 2: MSP establishes Landed Costs, Product details, Pricing and Distribution Chains.

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

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

Step 1 Feasibility & Agreement

• Distribution Chain Established (w/ all costing) and • MSP Documentation for User and Customer developed

Step 2 Matching Needs & Documentation

• Implementation: Staff Education and Guidance during launch

• Routine supervision and guidance, reporting to User Management.

Step 3 Implementation and Reporting

Market Research, Marketing, Sales and Warehousing

USSO™ will on behalf of the User

• Do extensive market research to establish the widest, relevant network of end-users and best distribution chains to reach them. Cost these channels.

• Landed costs for User products will be established.• Transform User Sales material to be in the correct units and language and

needs of the USA end-user. • 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.

• Warehouse adequate quantities for economic shipping and prompt supply to end-user. Two business day delivery possible to most USA customers.

• Attend to End-user support and warranty claims.

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

USSO™ will on behalf of the

User:

• Handle Account Receivables and bank directly in User account,

• Make payments for services rendered, commissions paid etc

• Deal with foreign currency• Assist with Trade Finance

arrangements for Capital Goods imports

Compliance

USSO™ 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 USSO User.

Communications, Support and Reporting

USSO™ will establish with User Internal

Departments:

• USSO™ 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.

USSO™ Costs

Contract renewable annually

Monthly Fee Success Commission on shipment value

Program Sales $0 5.0%

Admin, Warehousing etc $1,500 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 USSO™ 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