1. Model Overview Investors: Five Salons in One: Business Plan

2. Agenda Concept Overview Strategy User Benefits How it Works Application Demo Financial Model

3. Concept Overview Challenge – Design, build, and run a salon that fits within the investor’s return parameters: – Assemble an expert team of participants – Design a salon that will produce maximum returns per investment dollar – Make the salon easily duplicable, quickly constructed, appealing, and can target specific market segments – Find willing producers (salon management team, nail technicians, barbers, and hair stylists) – Provide an easy entry and a quick and profitable exit strategy Solution – Enlist the participation of a contractor that has experience with designing and building salons, and has substantial familiarity with the 24-hour concept. – Enlist the participation of expert attorneys that can prepare the leases and licenses. – Enlist the participation of expert Realtors to locate retail outlets and advise on leasing criteria – Hire a management team that will have the ability to run the business without direct time consuming involvement from the investor. The management team will have the responsibility to construct and supervise the salon managers, and conduct a strategy to provide maximum returns for the investor. – Encourage (by enticing) the salon schools and the product distributors to work with the management team toward the common goal of keeping the chairs rented – Use the Hair and Nails Group platform and the “part-time” labor pool – Entice the producers to work in the salon (hair stylists and nail technicians) by creating a mobile pool for part-time, new, and unemployed cosmetologists. Allow the producers to work by the day, drive traffic to the salon, and offer discounted weekly rentals an a “shared chair” basis. – Offer discounted chair rentals to the salon managers and share your profits with them

4. Strategy Assemble Assemble experts in the salon industry, the real estate fields and the legal fields to participate in this model Create a “part-time” labor for new, and unemployed cosmetologists to participate in the hair and nails industry. Create an online application to serve as a platform for the salons to efficiently lease chairs Entice Have the lowest break-even costs in the industry and apply that advantage to entice the industry participants to work at your salon. Use your low break-even advantage to create an incentive system for salon owners and hair stylists to join your management team. Create an incentive system for the product distributors and salon schools to continue to participant in the positive outcome of your salons (you can afford to pay Headhunter referral rates) Create a system for part-time, new, and unemployed cosmetologists to lease a chair by the day, any day of week, at their discretion Use the large number of hair stylists and nail technicians that will be working at your salon to your advantage. Allow them to sublease their chair through the use of the platform and to share chairs to receive the weekly rental rate. Expand Provide a profitable exit strategy, and increase the selling price by including a fixed asset (the co-op interest) with a business that has verifiable and stable revenue streams to another investor (3 rd party)

5. Investor Benefits Investor – Creates a High Return/Low Risk investment channel – Includes a management option for investors that have neither the time or experience to operate a salon – Provides an investment that can be easily duplicated on a national scale – Maintains independent control by using individually designed agreements and maintaining 100% ownership – A win for the hair stylists and nail technicians, thereby assuring loyalty – Low cost entry Previous Salon Owners (Management Team) – No more monetary risk – A share of the salon’s profits – Weekly licenses for $1-$50 per week – Ability to sublease vacant chairs to increase income Broker – Increase leasing business

6. How it Works Investors – Enlist a contractor that will provide an “all inclusive approach” – Employ a first class salon management team – Build salons that fit within your investment parameters (most chairs per square foot ($/sq.ft.) in the industry, easily adjustable configuration, portable washing stations, privacy per section, market to many types of market segments, and have the ability to be open 24 hours per day) – Employ a professional management team to supervise construction and ongoing operations so that you may remain an absentee owner. (You can afford to pay the highest management fees in the industry for top-shelf service) Salon Management Team – The salon manager licenses the “general manager” chair for $1 per week – The salon management team receives a discount for their chair rentals ($50 per week) – The salon management team shares the profits of the mega-salon (10%) – The salon rents the chairs on a daily and weekly basis. Beauty Schools and Product Distributors – Set up a mobile pool for part-time, new, and unemployed cosmetologists. Provide the cosmetologists with a FREE advertising page. – Pay the beauty schools and the product distributors $1, for each day one of their referrals work. – Let the beauty schools and the product distributors share the $500 fee you will pay to the Hair and Nails Group for a conversion of a part-time cosmetologist to a full-time cosmetologist. – Pay the beauty schools and the product distributors $1000-$5,000 for each referral of a management team member.

7. Excel Summary IRR: 6.25 Years, before TaxesIRR: 6.25 Years, after TaxesIRR: 5.25 Years, after Taxes with Sale $ (250,000) $ 99,5331.25 $ 88,949 $ 89,3161.25 $ 102,7241.25 $ 102,724 2 $ 143,8242 $ 94,6272 3 $ 196,5693 $ 130,1333 4 $ 232,7474 $ 151,984 4 5 $ 228,1625 $ 143,5125 $ 1,865,865 $ 1,722,35210 6 $ 228,1626 $ 143,512 $ 71,7820.2 IRR55.50%IRR40.87% $ 143,512 IRR73.71%