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Investment Proposal: Real Estate

Investments in Arkansas Free Zone

Owners

Arkansas Business Park Services Limited

4605 Elam Street Little Rock,
Arkansas, USA – 72204
Phone: +1 (501) 568-6681
Fax: +1 (501) 568-5064
E-mail: inquiries@cpme-ltd.com
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I. Table of Contents

I.Table of Contents....................................................................................... ....................2

II.Executive Summary................................................................................ ......................3

III.Business Opportunities / Description......................................................................... ...8

IV.Business Model and Investments.......................................................................... .....14

V.Marketing Plan........................................................................................... .................20

VI.Management and Organization............................................................................ ......23

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II. Executive Summary

Arkansas Business Park Services Ltd (hereinafter referred as ABP) has identified a
significant business opportunity in Arkansas Foreign Trade Zone (hereinafter referred as
AFTZ) promotion and structured a new business model designed to – solicit business
investments in AFTZ, promote real estate development in AFTZ and provide
management services to business units in AFTZ, as the first mover. In view of AFTZ’s
business package and real estate growth prospects, the business offers tremendous
opportunity to its investors and participants.

INVESTMENT PROPOSAL
ABP’s Real Estate Business Partner Model is highly flexible and opportunity driven
secured model. The investor will have absolute comfort with the transparency and
security issues:

Minimum Investment Unit for Property Fund - $ 5 million

Legal Framework – each investment unit will be a separate company (Investing

Company) and investors will have equity participation in such unit

Security – the property acquired will be registered in the name of the Investing company,
in which they will have proportionate equity participation.

Return on Investment – anticipated return of 31% p.a. on real state opportunity

(excluding the exceptional opportunity on distress properties, which could go up.)

Management – property and marketing will be managed by ABP’s professional team

BUSINESS DESCRIPTION
ABP’s Business can be best described as business promotion through solicitation of
investments in AFTZ, offering them real estate for business premises and
comprehensive management services for business setting and relocation.

Indian / Chinese companies are looking for easier gateway for manufacturing and
distribution space in USA for huge market potential within USA and for re exports to
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Latin America / Mexico

US companies can also be relocated to AFTZ for its infrastructure, economic advantages
and easier logistics

AFTZ has huge real estate available (land as well built premises), which can be offered
to AFTZ Business Units at lucrative prices. Global real estate investors (including
property development companies) can be invited to participate in business model.

AFTZ Business Units, will benefit tremendously from ABP’s comprehensive product (i.e.
real estate development & management, management advisory & business
promotion services including funds raising, strategic planning and trade shows)

Real Estate Business Partner Benefits By working with ABP, its real estate
business partners - benefit from increased access to a growing real estate business that
will flow in to ABP for the following factors:

• ABP’s representation of AFTZ and its knowledge of real estate business in

Arkansas
• ABP’s access to entrepreneurs in AFTZ (for being its business promotion
partner) for facilitation of developed and managed properties
• ABP’s association with investors in AFTZ for its comprehensive management
services in business setting and/or relocation will help in timely sale / lease out of
acquired properties

AFTZ Business Unit Benefits By working with ABP, AFTZ potential investors and
existing business units benefit from single desk assistance for the followings:

• Fact finding and preliminary studies (e.g. opportunity studies)

• Identification of suitable locations and acquisition of business premises (properly
developed to suit their business plan) with multiple products like long term lease,
buyout option, real estate management etc.
• Faster regulatory compliances with AFTZ for business setting and /or relocation
• Business plan writing, company incorporation, business development assistance,
facilitation of consulting services (legal, accounting, taxation, market research
etc)
• Funds raising services for AFTZ investors

BARRIERS TO ENTRY
ABP helps AFTZ, its real estate business partners and AFTZ business units, in removing
barrier to entry:
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• AFTZ. India and China are effectively seeking global investment and export
opportunities for US / Latin American markets and Arkansas for its strategic
location and infrastructure is ideally suited for facilitating such a gateway.
Currently, AFTZ has not been able to effectively solicit investments from both
Asian Giants for lack of direct marketing, relationship marketing and cultural
issues. ABP will operate to bridge such marketing gaps.
• Real Estate Business Partners. Global real estate investors and property
development companies are not been able to target potential investment
opportunities for their lack of access to Arkansas properties (for both acquisition
and disposal); and ABP will assist such investment aspirants through its unique
investment model.
• AFTZ Entrepreneurs. To ensure success, ABP will create a vibrant community
between AFTZ and AFTZ entrepreneurs. AFTZ entrepreneurs often require
comprehensive emotional comforts, single desk coordination, timely developed
business premises and legal/management assistance, at each stage of their
investments (prior to investment decisions, while implementing their business
plans etc). Their lack of knowledge and comfort, often direct them to seek
alternative opportunities. ABP’s management will work on their behalf as well, to
remove such emotional barrier.

MANAGEMENT TEAM
The management team consists of professionally competent team members, who share
one another's dreams and passions to drive ABP forward. Combined, the founders have
over 100 years of direct experience in foreign trade zone marketing, professional
management consulting experience, real estate investments, global investment
solicitation, general management, e-commerce, finance, marketing, and operations. The
key management team is as under:

Experience
Member Name ABP Role
(Years)

Mr. Kevin W. Massengill 27 Chief Executive Officer

Dr. Raghunandan Menon 20 Chief Strategy Officer

Prafulla Gang 20 Chief Operating Officer

Michael D. Hill 22 Director Real Estate Operation

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David E. Simmons 23 Director - Legal & Regulatory Compliance

BUSINESS RISKS

ABP (and its business partners) faces certain risks inherent to “Real Estate Investments”
in general and “Foreign Trade Zone” in particular.

Financial Risks At initial stages of acquisitions / developments of property in AFTZ, Our

quarterly revenues and operating results are difficult to predict and may fluctuate
significantly from quarter to quarter as a result of a variety of factors. Among these
factors are:

• Varied Timing in acquisition of respective properties

• Fluctuations in expected revenues from AFTZ investments (i.e. disposal of such
properties through outright sale and/or long term lease)
• Timing of costs related to acquisitions or payments.
• Fluctuations in property values between the timing of acquisition (and
subsequent development) and its final disposal

Legislative / Legal Landscape Our participation in the foreign trade zone and real
estate vertical presents normal risks:

• Global investment related legislations (specially free / foreign trade zone related
trade barriers and trade treaties)
• Federal and State regulations on real estate business and/or AFTZ

Operational Risks To attract and retain users to the AFTZ, we must continue to provide
unique and informative services. This confers certain risks including the failure to:

• Anticipate and respond to AFTZ investor’s preferences for industry verticals

• Attract, excite and retain a large audience of AFTZ users to the AFTZ
• Create and maintain successful strategic alliances with high quality partners
• Deliver high quality, "24/7" customer service and performance
• Build the AFTZ brand rapidly and substantially
• Compete effectively against other Foreign Trade Zones

RISK MANAGEMENT AND POTENTIAL RISK EXIT SCENARIOS

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ABP, for its risk management plan is well geared to manage the business and
investment risks:

Financial Risks At initial stages of property acquisition and developments, AFTZ current
property prices are at very low levels for its current growing age (so lower end
fluctuations in its pricings are highly remote possibility). To minimize risk in future
fluctuations, ABP will focus on following methods for risk minimization:

• Continuous monitoring of real estate pricings and reporting thereof to business

partners
• Timing the acquisitions / developments in line with AFTZ’s entrepreneurs
investment decision (to avoid unnecessary longer duration holding of properties),
backed by proper long term contracts
• Managing such investment cash flows strictly in line with future receivables from
AFTZ entrepreneurs
• Keeping investment cycle of shorter and predictable duration

Legislative / Legal Landscape Global emergence of Foreign trade zones and

international treaties are leaving very little scope, of some drastic changes in regulations
relating to Foreign trade zones. So this risk stands highly unlikely.

Operational Risks ABP has engaged highly professional and experienced management
team to market and manage its business operations. Through close monitoring,
customer help desk, 360 degree feedback, operational audits and timely reporting; ABP
is committed to manage its operations very efficiently, flexibly and competitively.

Two potential exit strategies exist for the Real Estate Business Partners:

• Initial Public Offering. We seek to go public within 3 years of operations. The

funds used will both help create liquidity for exit option for business partners as
well as allow for additional capital to develop our international strategy.
• Acquisition Merger with Alternative Funds / New Investment Unit. Emerging real
estate scenario will always provide option to existing investment unit to sell their
values to other investment units. ABP will actively help its business partners in
coordinating for such proposals. Since most of such real estate investment cycle
is involving shorter duration (with focus on more rotation of funds) and will be
matched with corresponding cash flows through disposal contracts with AFTZ
entrepreneurs.
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III. Business Opportunities / Description

We envision developing our AFTZ investors into informed, proactive users of

AFTZ infrastructure and services. They will be empowered by current,
customized information, management services that our vertical partners
present. In turn, our business partners will have opportunities to reach critical
new real estate markets through novel business relationships that reduce
associated costs and increase potential revenues. ABP plans to then, expand
its business model for other emerging foreign trade zones and property
markets.

3.1 Business Scenario

AFTZ has strategic advantage in USA for its attractive cost effective infrastructure,
transportation facilities (inland as well for exports), investor friendly taxation and
regulations, abundance of utilities, lower cost of labor (skilled as well unskilled) and
effective access to market (USA as well re export market in Latin America & Mexico).
Real estate pricings are currently prevailing at low end, for less effectively marketed
AFTZ in global and national scenario.

3.1.1 Why current real estate values are low? And its future Outlook

Current real estate values in Arkansas Foreign Trade Zone are relatively much lower for
the following key reasons:

• Not much Audience for lack of reach to potential investors. AFTZ has not been
effectively reached to global and national investors for the business opportunities
in the state. Even with the investor friendly environment, the branding need to be
established and demonstrated for effective solicitation. In turn, most AFTZ
properties are under utilized and carry lesser values.
• Real Estate Investors follow growing zones. Real estate investors always tend to
invest in the growing economies, which can offer them quicker returns with
shorter turnaround period.
• Key Factor for Real Estate Values. If the AFTZ is promoted and marketed well for
solicitation of investments, for its strategic location and infrastructural strength,
investors will certainly seek AFTZ as their destination. In turn, the real estate
investors will stand to gain in shorter duration with minimized risks.
• Physical Interaction. AFTZ prospects will require direct marketing approach
blended with comprehensive package by marketing and management enterprise,
especially in country like India / China etc.
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A. Case Study of Real Estate Values with Specimen Investment of US$ 5 Million
(Distress Sales)

• There is specific property available worth US$ 10 million at US$ 4.5 million for
specific circumstances

• Approximate additional expenses for its development US $ 500,000

• Over the period of one year, property can earn approximately 100% on its
investments

B. Case Study of Real Estate Values with Investment of US$ 5 Million (Normal
Circumstances)

• For an average investment opportunity in AFTZ developed property US$ 5

million

• Approximate additional expenses for its development US $ 500,000

• Over the period of three years, property can earn approximately 100% on its
investments in terms of resale value

B. Case Study of Real Estate Values with Investment of US$ 5 Million (Normal
Circumstances and long lease coupled with buyout option)

• For an average investment opportunity in AFTZ developed property US$ 5

million

• Approximate additional expenses for its development US $ 1,000,000

• Over the period of five years, property can earn approximately 150% on its
investments (cash realization)

Likewise many such properties are available for acquisition and development in AFTZ
and will offer very attractive returns on investment. The above opportunity will come
only for ABP’s close association with AFTZ and ABP’s comprehensive products for
AFTZ business units.
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3.1.2 How can AFTZ entrepreneurs benefit? Why are they not coming to AFTZ
now?

AFTZ can very well offer vibrant environment to its global and national investors in inland
trade and re export business to Latin America / Mexico. AFTZ has key advantages to
offer its investors:

• Lower manufacturing costs (for lower capital investments in land / buildings,

cheaper work force, friendly labor laws, cost effective logistics and lower utility
costs)

• Lower warehousing and distribution costs for re exporters and distribution

companies – targeting both US as well export business (for excellent access to
port and inland transportation)

• Investor friendly taxation and regulations

• Enormous benefits to both foreign investors as well national companies (for both
new investments and relocation to AFTZ)

Refer Annexure I for profile and competitive strength of AFTZ

Even with so many benefits, so far AFTZ has not been able to solicit encouraged
participation from global investors and large national investors. It is primarily for lack of
direct marketing approach and aggressive brand promotion (both globally and
nationally). There is enormous potential, for ABP to blend comprehensive management
services and direct marketing globally, to solicit medium to large investments. This will
ensure win-win situation for all the parties – ABP, AFTZ entrepreneurs and ABP business
partners.

3.1.3 Who are target investors in AFTZ? And Key parameters thereof

ABP intends to focus at the following business enterprises / verticals for investments in
AFTZ:

• Indian and Chinese companies – seeking USA as potential export market for
their production facilities (with easier gateway to USA, state of art warehousing
and distribution facilities – at relatively lower investment compared to other US
states)

• Indian and Chinese companies seeking Latin America as potential export market
– through their warehousing facilities in AFTZ (with easier access to Mexico /
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Latin America and much secured business environment compared to Latin

America, including currency fluctuation risks in trade with Latin America)

• Amongst Indian / Chinese business enterprises in particular – who also need to

provide value added services to their customers – can also find AFTZ as
convenient and strategic location for required infrastructure (for cheaper work
force, utility costs etc) – This segment in particular can include various verticals
like Gems & Jewelry, Stone & marbles, electronics, IT companies etc

• US companies willing to relocate to AFTZ for economic and market advantages

Business Gains Triad

Service Providers / Value

Manufacturers Traders / Distributors
Adding Enterprises

New Investments as well Inland / Re exporters IT companies, Support

Relocations
Stations to Outsourcing
• Lower warehousing companies, Industry Verticals
• Lower production
costs
costs
• Quicker access to USA
• Cheaper land and • Cheaper work force
and Re export market of
building • Secured business
Latin America / Mexico
• Cheaper work forces
• Lower inward and environment
• Cheaper utility costs • Lower investment
outward costs (sea /
• Friendly regulations inland) prerequisite
and taxes • Friendly taxation and • Friendly taxation and
regulations regulations
• Investment • Secured business
incentives environment • Lower infrastructural
costs
• Friendly banking and
insurance structure

3.2 Business Opportunities and Entry Strategies

3.2.1 ABP has identified the following business opportunities:
• AFTZ Marketing and Brand promotion Services Globally as well Nationally
ABP through its own offices, associates and technology – will engage in
soliciting investments in AFTZ global business enterprises and national
companies. ABP has professional team to reach potential investors and
assist them in making investment decisions. ABP will invest in direct
marketing resources, web driven marketing and rationalized brand promotion
exercise.

• Real Estate Acquisition, Development and Management - ABP through its

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business partners will acquire real estate in AFTZ at lower prices, will develop
them to suit needs prescribed by AFTZ investors and facilitate them. With the
active marketing of AFTZ, its real estate values are bound to rise; ABP for its
early entry (and backed by its marketing arm for offering the same to AFTZ
investors) foresees strong business prospects in immediate to long run.

• Comprehensive Management Services to AFTZ Investors - ABP is setting up

comprehensive business assistance services to facilitate easier business
setting up for AFTZ entrepreneurs. Its services will include - consulting
services (e.g. pre investment studies, location studies, business plan
writing services, market survey services, industrial feasibility studies,
funds arrangement services, risk capital arrangements, existing loans
restructuring, business relocation studies, strategic planning and advisory
services etc), legal and regulatory services (e.g. incorporation services, tax
return filing services, legal assistance, regulatory compliance services
etc), incubator services (e.g. business ideas related assistance, technology
assistance, pre investment studies, business plan writing services, market
survey services, funds arrangement services, risk capital arrangements
etc) and web driven outsourcing & trade lead services etc.

3.2.2 Entry Strategy

ABP will use its foreign trade zone marketing and management consultancy experience
as entry strategy. It will implement its business opportunities in phased manner.

• Step I (month 0 – 3)
o setting up of management team in USA and preparation of necessary
marketing kit and consultancy services kit
o Structuring broad business alliances for specialized outsourced services
o Identification of real estate investment’s initial opportunities (target level
US$ 10 millions) and seeking participation from business partners
o Launch of trade lead portals and business services outsourcing portal
o Consulting services for relocation to AFTZ
• Step II (month 4-6)
o Commencement of direct marketing and global advertisement of AFTZ in
Indian market
o Aggressive marketing for AFTZ relocation assistance to USA based
companies
• Step III (Month 7-12)
o Expand its business partnership model with more real estate investors for
each investment unit
o After initial 6 months – targeting Chinese and South East Asian Countries

3.3 Growth Opportunities beyond the Arkansas State

Once the initial operation stabilizes, it will focus on other markets and more value added
services. With initial success in the Arkansas, we will then expand our operations in
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other states in USA. Our extraordinary opportunities for expansion come from three key
areas.

• Leveraging the reputation and relationships from a successful AFTZ

launch in emerging economies
• Launching well blended and uniquely packaged services to
entrepreneurs (real estate acquisition / development / management;
comprehensive management services; technology driven business
development assistance)
• Real estate expertise for acquisition, development and management of
properties
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IV. Business Model and Investments

4.1 Business Model

ABP has structured its business and investment model for perfect equilibrium between
business opportunities, management issues and investment of business partners. In its
working model, ABP has focused on following key factors:

• Business opportunity centric model

• Flexible and dynamic structure to meet higher investment needs

• Keeping management and operations away from investment structure, so that

management is not affected by flexible investment structure

• Easier entry and optional exit by business partners

• Risk management for investments

• Growth option to business partners

4.1.1 Legal Structure

ABP is Arkansas incorporated Management Company, which will have adequate capital
for its marketing and management services. After three years, ABP will expand its capital
base through public offerings.

4.1.2 Business Partners for Real Estate related Opportunities

• For each identified real estate related opportunity (e.g. acquisition, development
and / or management), ABP will solicit investment (property fund) from business
partners.

• Each investment unit will be in multiple of US$ 5 millions

• There can be multiple business partners in each investment unit

• Independent company will be incorporated for each investment unit with the
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proportionate shareholding of contributing partners (80%) and ABP (20%)

• Minimum duration of such investment unit will be three years

• ABP will be sole management company for such investment unit and will be
entitled for 5% fee (as finder’s fee and management fee) for each transaction.
Such fee will be available to ABP for its operations.

• ABP will be authorized to make investment decisions and assets management

decisions on behalf of investment unit

• Detailed monitoring and reporting structure will be devised to suit business

partners’ concerns

• Such investment unit will own such acquired assets and upon sale of assets, its
realized profit (income less expenses) will be distributed amongst its
shareholders.

• Business partners will have option to liquidate such investment unit; restructure
through acquisition / merge with another investment unit at negotiated price

4.1.3 Arkansas Foreign Trade Zone Marketing and Management Services

ABP will be solely responsible for AFTZ’s marketing and its management consulting
services. It has drawn independent business understanding with its offices / associates
in various countries for necessary marketing assistance. ABP will also engage external
service providers for various professional services.

4.2 Revenue / Investment Model

ABP plans to follow the following pricings and revenue model.

AFTZ marketing and brand promotion (Cost Center)

ABP will carry out AFTZ marketing and brand promotion exercise, as marketing exercise
for its revenue center (primarily - real estate) and will be funded by other revenue
centers for such direct marketing efforts. For global advertisements, it will meet its
expenses from the allocated budgets of Arkansas Foreign Trade Zone Authority.

Real Estate Activities (Revenue Center)

ABP will identify real estate investment opportunities and will deploy available property
funds in transparent manner (legality involves a separate company formation for each
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investment unit with investor’s equity stake). These real estate investment opportunities
can be grouped into two categories:

A. Distressed properties – available for purchase at much lower

values compared to normal prices for special circumstances.
These will generally fetch abnormal profits in shorter periods.
(100% returns on investment in 2/3 years)

B. Normal properties – available in normal circumstances.

Currently, AFTZ property prices are much lower compared to
other growing foreign trade zones. So this time is highly
opportune for entry. ABP expects return of 31% on annualized
basis from such investment units (through enhanced pricing of
such developed real estate).

For the purpose of revenue projections, we have excluded the investment opportunities
for property fund from distressed properties. These transactions will be undertaken - only
on case to case basis with prior explicit consent from investing business partners.

The initial periods (0-6 months) are also excluded in revenue projections, as startup
periods. ABP anticipates the 9 months (inclusive of 3 months modifications /
development) for a transactional cycle and in three years – minimum three completed
transactions from the property funds. If the transaction cycle can be reduced by another
3 months – then profitability can be bit higher as well.

Property Fund – Working Details

amount in US $
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accounting periods for fund

start up period year 1 year 2 year 3
12 12 12
year length 0-6 months months months

Property Fund 5,000,000

Finder's Fee -250,000

Net Funds 4,750,000

Deal I
Property Acquisition 4,275,000
Development / Modification 475,000
Total Funds Invested 4,750,000
Sale Proceeds 6,175,000

Profit from Deal 1,425,000

Deal 2
Property Fund 6,175,000

Finder's Fee -308,750

Net Funds 5,866,250

Property Acquisition 5,279,625

Development / Modification 586,625
Total Funds Invested 5,866,250
Sale Proceeds 7,743,450

1,877,20
Profit from Deal 0

Deal 3
Property Fund 7,743,450

Finder's Fee -387,173

Net Funds 7,356,278

Property Acquisition 6,620,650

Development / Modification 735,628
Total Funds Invested 7,356,278
Sale Proceeds 9,710,286

2,354,00
Profit from Deal 9
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Total Funds Value at Year 3 9,710,286

(available for redemption)

Value Enhancement of Fund 4,710,286

Net Annualized Growth 31%

Management Consulting Services (Revenue Center)

ABP will have self sustaining management consulting services division and will be
earning from services offered to AFTZ prospects (through AFTZ marketing division) and
AFTZ investors (direct marketing by revenue center itself). ABP will be offering services
directly as well through outsourced agencies (including its local professional associates).
It aims to keep its pricing policies in line with local competitors and target market pricing
levels.
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V. Marketing Plan

5.1 Marketing Objectives

• Establish a strong presence in the global market for AFTZ

• Use the Indian association as a conduit for entry into the AFTZ provide
guaranteed demand, market penetration, and an opportunity to expand into
Arkansas real estate market at a reduced business and financial risk.
• Utilize acquired market knowledge and presence to establish AFTZ investors
both through ABP affiliations and through the efforts of ABP’s own sales force.
• Establish significant high-margin sales for Arkansas properties

5.2 Marketing Approach

ABP specializes in Foreign Trade Zone marketing and through its professional team /
global presence; it is well geared to undertake:

• Direct marketing for AFTZ in India, China and South East Asia (in immediate time
frame)

• AFTZ brand promotion through advertisement campaign, localized (targeted)

conferences and sponsored events

• Blending trade lead portals to promote AFTZ investments

AFTZ is strategically critical link for major revenue centre (e.g. real estate and
management services). ABP’s foreign trade zone marketing will build trust and unifying
relationship with AFTZ investors, and in turn will facilitate competitive edge for its
revenue centers.

Direct / Online Marketing – ABP’s direct / online marketing approach includes:

• Identification of leads through targeted presentations, dedicated trade

lead B2B portal, email campaigns and sponsored events etc

• Aggressive follow-ups with prospects (including personal meetings) with

consulting arm (for pre investment studies, market surveys, funds
arrangement services, cost-benefit analysis, relocation studies etc)
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• Web based 24/7 help desk and telephonic help desk

Advertisement Campaign for Global Investors – ABP will also be carrying out
advertisement campaign, on behalf of AFTZ for effective AFTZ brand promotion
and will be reimbursed by AFTZ for any such campaign expenses (on prior
approval basis).

5.5 Competitor’s Landscape

Below we describe select competitors.

Figure Select Competitors

COMPETITORS COMPETITIVE CHECKLIST

Real Estate Investors in Arkansas / USA including Threat - Normal / Medium

property management companies

Focus - Only on real estate

ABP will have an edge for its integrated

Reliability/Quality – High
operations in terms of global marketing of
AFTZ and relationships Capitalization – High

Threat – Low
Other southern states’ Foreign Trade Zones
Focus – Only on Foreign Trade Zone
Firstly, like AFTZ – most of them have not
been directly marketing into South East Asian Capitalization – High
markets
Reliability / Quality – High

Local Management Services Threat – Medium

Due to close association with AFTZ investors Capitalization - Low/Medium

for real estate and AFTZ marketing, ABP’s

Alliances - Low
management services will have strong
business prospects Reliability/Quality – Medium
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Determinants of Prospect’s Response

• Integrated services – single desk facilitation

• Global presence

• Relationships with prospects at various stages of business / investment decisions

• Knowledge (customer, FTZ structure, real estate)

5.6 Niche and Our Unique Selling Proposition

Our niche audience is the global investors, who want to effectively position their
business in USA for their export prospects (into USA and Latin America / Mexico). India,
China and South East Asian countries have accelerated exports trade for past few years
and strategically, their physical presence do suit their business prospects. Such
business enterprises have deep pockets to invest and sustain in growing markets and
will certainly be our primary targets.

ABP’s USP is its integrated, highly personalized single desk and comprehensive
services for investors in AFTZ, at various stages of investments.

5.7 Sales Promotions

ABP will reach out to its prospects through:

• Targeted (localized) workshops, seminars and road shows

• Relationship marketing through business associates
• Blend low cost methods such as web, email campaigns, dedicated trade lead
portals
• Periodic advertisements in trade magazines, talk shows, trade shows etc

ABP will be representing AFTZ for its business unit solicitation. Once prospect is
interested in making investment decision, our management services office, will then,
interact closely with prospect for necessary services and regulatory compliances.
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VI. Management and Organization

6.1 Management Team

The ABP management is a key asset necessary to propel this project forward.
Combined, all founders have over 100 years of direct experience in foreign trade zone
marketing, management consultancy, general management, web technology and IT,
finance, marketing, and operations. The strength of the team stems from three major
factors:

• Each team member commands substantial knowledge and skill. In addition to the
theoretical knowledge and classroom skills evidenced by academic honors, each
team member has a history of achievement in his or her previous field which is
beyond that expected for age.

• The management team works well together. The management team was borne
of strong professional & emotional bond, and mutual respect. A strong ethic of
teamwork manifests itself in an open and cooperative work style.

• Each team member is committed to bringing the project to fruition. Each team
member will sacrifice more certain opportunities in order to attain corporate
objectives. Foregoing their positions-each at the respective industry's leading
firms-shows the depth of the team's commitment.

• The roles of each team member are in line with qualifications and interests,
bolstering the feasibility of our plans. The following figure shows the background
of each member and the organization of ABP.

Team Member Matrix

Summary profile of the key team members are as under along with their respective
functional roles:

Kevin W. Massengill is Chief Executive Officer and a retired United States Army Officer
and Middle East Foreign Area Officer with over a decade of service in various US
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embassies in the Middle East and the headquarters of US Central Command. Mr.
Massengill has a Bachelor of Arts degree in Russian Area Studies from the University of
Missouri and a Master of Arts degree in Near Eastern Studies from Princeton University.
Following a three-year assignment at the US Embassy to the United Arab Emirates,
Lieutenant Colonel Massengill retired in Abu Dhabi, with his wife and two children, where
he is active in the community, serving as Chairman of the Board of Trustees for the
American Community School and as a member of the Board of the American Business
Group - Abu Dhabi.

Dr. Raghunandan Menon is Chief Strategy Officer and the managing partner of the
newly formed Consultancy Partners India with over two decades of experience in front
line sales, corporate marketing and strategy. Dr. Menon holds a PhD in Strategic
Operations and Marketing, a Masters in Management Information Systems from Henley
Management College, Oxford shire, England and a Masters in Marketing and Sales from
the University of Delhi. Dr. Menon has specialized in the creation and branding of
marketing infrastructures such as free trade zones, airports, and tourism development
boards for governments in India, Thailand and the United Arab Emirates. Dr. Menon
currently resides in India with his wife and two daughters where he is actively involved in
various NGOs which are sponsored by the present government as well as the opposition
parties. Dr. Menon also serves as a member of a Board of a large, privately-held UAE
company with diverse interests from bunkering fuel to money exchanges.

Prafulla Gang is a qualified Chartered Accountant and have 20 years of international

consulting experience; Specializing in business / product merger and acquisition with
financial planning, business valuations, opportunity assessment studies, blue print
implementation of business / product acquisitions and merger / integration, financial
forecasting modules, due diligence studies, solicitation of funds / loan restructuring
including international banks including global development banks, private bankers,
venture funds etc ; strategic alliance formation, business partner identification, strategic
business model evolving, digital collateral preparation, proposal building, risk analysis,
cost analysis, pricing model building for products as well services, legality issues,
negotiations etc. Experience playing a key role in business development efforts with
new and existing clients (strong commercial background blended with hands on
technology experience); Personal – Married with two children; Age 40 years.
 Page 25 of 26

Michael D. Hill is the President and owner of MDH Builders, Incorporated, a commercial
general contractor based in Little Rock, Arkansas. Michael has worked for MDH since
it’s inception in August of 1993. MDH is a national contractor working in twenty-eight
states and anticipates annual revenues of over 60 million in 2006. Michael was raised in
Clarksdale, Mississippi and graduated with a BBA in Marketing from Delta State
University in 1984. Shortly after graduation he moved to Little Rock, Arkansas and was
employed by Kinco, Construction as a salesman. In 1988 Michael joined Crane
Construction as the Vice President. At Crane he was responsible for business
development and operations. Crane Construction revenue went from two million to fifty-
six million in a four year period. In August of 1993 Michael founded MDH Builders, Inc.
In 2005 MDH Builders, Inc. was ranked in the top ten general contractors in Arkansas.
Michael and his wife Carey have four children and they are very active in their church
and family sporting events.

David E. Simmons- born West Helena (Arkansas) December 31, 1957; admitted to bar
in 1983(Arkansas), in 1984 Texas and U.S. District Court (Northern District of Texas), in
1985 - U.S. District Court (Eastern District of Arkansas). Education: University of
Arkansas (B.S.B.A., Accounting, 1980; J.D., 1983); Southern Methodist University
(LL.M., Taxation, 1984). Member: Arkansas (Member, Sections on: Real Estate; Tax and
Probate) and American (Member, Sections on: Taxation and Real Estate; Probate and
Trust Law) Bar Associations; State Bar of Texas. Reported Cases: Hartwick v. Thorne,
300 Ark. 502 (1989); Arkansas State Bank Commission v. Bank of Marvell, 304 Ark. 602
(1991) Practice Areas: Business Transactions; Real Estate Investment; Real Property;
Commercial Contracts; Construction Contracts; Tax Planning; Multi-Family Housing;
Leasing; Evictions; Estate Planning; Probate Administration. Representative Clients:
Apartment Investment Management Co.; RPM Management Company, Inc.; Arkansas
Apartment Association; Mid-America Apartments, Inc.; Champion Builders, Inc.;
Calhoun-Barre Development Corp.; First Capital Management Group, Inc.; UDR
Western Residential, Inc.; Sage Co.; Ledic Management, Inc.; Standard Enterprises,
Inc.; MLP Management, Inc.; McCormick Barron Property Management; Arkansas
Primary Care Clinics, Inc; Henry Management Company; Bailey Properties, LLC.;
Dickson Flake Partners; Bell Corley Construction; Hathaway Group Realty; Capstone
Management
 Page 26 of 26

6.2 Future Team Members

In addition to the key members mentioned above, ABP will recruit senior executives with
specific functional skills required of future operations. Candidates meeting qualifications
will be added as the business's operations merit.

In addition to full time professional team, ABP will be assisted by experienced Board of
Directors and external professional service providers – e.g. Attorneys, Accountants,
Insurance Agents, Bankers, Consultants and key advisors.