This is a home run hit

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THIS IS A HOME RUN HIT ! 1.$35,000,000+ Niche U.S. Saddle Tree Market $ 35,000,000+ International Saddle Tree Market

2. No Significant Saddle Tree Competitors 3. Competitors are using Antiquated technology 4. Competitors have a significant Legal Legacy Liability 5. We have Technological Superiority 6. Patented Proprietary Position 7. No Significant “Technological” hurdles 8. Relatively Low $ Capitalization Required 9. Return on Investment 10X – 20X or better 11. We are Creating a Tipping Point Phenomenon.


AMERICAN SADDLE TREE COMPANY - Executive Summary The “saddle tree” is the frame upon which all saddles are built to fit on horses’ backs, and the frame upon which on the leather that constitutes the saddle, is attached. As amazing as it may be, in the United States more than 350,000 western saddle trees are sold every year, in a market of 7,000,000 horses. Equally amazing is that all the saddle tree manufacturing companies, including Superior Saddle Tree Company & Hercules Tree Company have built these saddle trees with technology that is straight out of a Dickens novel, set in the 1800’s, which significantly limits production. There is a significant market opportunity to apply modern manufacturing methods to this saddle tree market and dominate saddle tree manufacturing worldwide. By integrating, “PATENTED” horse and saddle measurement technology with computer-numerical controlled (CNC) routers, a significant increase in accuracy and productivity is easily achieved. Employing “PROPRIETARY MEASUREMENT TECHNOLOGY” also permits “MARKET DIFFERENTIATION” by being able to actually validate the saddle “FIT” with computer interface pressure measurement. By adding software to control CNC leather cutting machinery, the corresponding leather parts that constitute the saddle, itself, can be provided as a “Saddle Making Kit” for a complete saddle making solution. The “Saddle Maker’s Virtual Apprentice” does all the dirty work, the saddle maker just adds “craftsmanship”, which is all what they really want to do, anyway. By an amazing series of unfortunate events, the two highest quality saddle tree companies in the United States, the Superior Saddle Tree Company & Hercules Tree Company are in position for asset acquisition, at a significant discount. Just as a previous version, of this business plan was being written and authorized by the then President of the Superior Saddle Tree Company, Frank Bellavia, he suffered a serious stroke and it is unlikely to ever return to work. In 2004, Superior received investment from the Piute Indian Economic Development Corporation, in Benton California and was moved on to the reservation. Due to its remote location and lack of skilled labor, Superior was in serious trouble before Frank’s stroke. With no knowledgeable management in the front office or skilled labor in the shop, the company is in dire straights. Since the tribal members never wanted to purchase the company, in the first place, it is only a matter of time before the Tribe will be forced sell assets. Superior’s sister company, Hercules Tree Company’s assets are currently in probate due to a tragic traffic accident, that killed the entire family. By purchasing these assets: the historic saddle tree patterns and “TRADE SECRET” manufacturing methods as well as client lists and “GOODWILL” and adding modern manufacturing methods in a semi-skilled labor market - a MARKET TAKE OVER STRATEGY can be effectively implemented. This market opportunity permits market domination with a few rather simple changes in the manufacturing process, because competitors are using such antiquated manufacturing equipment. By using computer technology to do the complicated tasks, the input for the saddle tree specifications can actually be performed by the saddle makers, themselves, by using an Oracle database, accessible worldwide through the Internet. This manufacturing strategy also permits the assembly of the saddle tree to be preformed by relatively “unskilled” labor, significantly reducing costs. All this can be accomplished by building, computer numerical controlled “Modular CAD-CAM Work Cells” that can be added, and financed, incrementally as market share increases. This “production driven”, American Pro Forma Financial Model NET INCOME BEFORE TAXES details how a $1,000,000 Private “Angel” Investment Loan, (repaid from 24,000,000 cash flow) plus an initial $500,000 Lease Line of Credit, over five years, 19,000,000 for the acquisition of the 3-Axis CNC Routers, and CNC leather cutting 14,000,000 machines can yield: cash positive in one year, a NET income of 9,000,000 $1,000,000, within 2 years, with a 15% market share. Even better, this 4,000,000 plan also permits over $20,000,000 in cumulative NET income before -1,000,000 taxes, with a 25%+ market share, within the first five years of operation. (Analysis is on the CD American Pro Forma) This Business Plan provides a 20 times Return on Investment (R.O.I.) Loan over 5 years, if all occurs as planned. Even more amazing, is that there is an up-side potential of 2X-3X times the above net income, if existing Federal Consumer Protection Laws are enforced. 1

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These extraordinary returns are only possible because this is not exactly a “Start-up”. This is a Strategic Reorganization and Modernization of Two (2) 40 year-old businesses. Superior has been back ordered 2 to 3 months for years on end and has consistently turned down large volume order of 1,000’s of saddles. By hiring Superior’s Production Manager, Lorenzo Javalara, these orders can be reclaimed and fulfilled, bringing the company into cash flow at a significantly faster pace than attempting to do it for a ground zero “start up” position. By building on the history of these two 40 years companies and coupling modern CAD-CAM production equipment with significantly greater measurement accuracy provided by Saddletech Technology, and hiring experienced staff, will permit the American Saddle Tree Company to exploit this significant market opportunity and create a “Tipping Point Phenomenon” in the saddle tree manufacturing industry. Please View the Executive Summary Powerpoint Slide Show on the CD for additional information.


Leveraging the “262 ” Intellectual Property for the future By licensing the Proprietary Technology as detailed in this Business Plan, there is a significant market opportunity for Pathfinder Leathers to “Leverage the “262 License” Intellectual Property” to build a network of companies that can provide employment as well as a significant revenue stream over the years. By building on this “262 License” a “Value Added” Saddle Making Franchise Opportunity can be created. This “CAD-CAM Work Cell Manufacturing System” itself, can be licensed to other Tribes or companies throughout the United States or the world, just as this “262 License” itself being licensed to the Pathfinder Leathers. Alternatively, the “Cash Cow” revenue stream could be used by Pathfinder Leathers to finance the saddle company, the boot company, a saddle pad company, and in time, maybe even a leather tannery, as well as the parent company the American Indian Prevention Coalition, itself. All these companies would provide career paths and more than $10,000,000 in gainful employment for over 100 individuals, all without the aid of any government grants or an initial public offering. This is a Real Market Opportunity. BUREAU OF INDIAN AFFAIRS EMPLOYMENT PROGRAMS

BUREAU OF INDIAN AFFAIRS HIGH SCHOOLS

NATIONAL HIGH SCHOOLS

PRIVATE SECTOR

SADDLE INDUSTRY

NATIVE AMERICAN UNIVERSITY

SA DDLE TECH

CALIBRATED SADDLE FITTING

1

SA DDLE TECH

SA DDLE TECH

SADDLE TREE MAKING

WESTERN SADDLE MAKING MAKING

2

SA DDLE TECH

AMERICAN SADDLE TREE COMPANY

SADDLETECH ORTHOTICS TO CORRECT FOR POOR FIT

SA DDLE TECH

SA DDLE TECH

TRIBAL SADDLE FITTERS

TRIBAL SADDLE MAKERS

TRIBAL DIRECT SADDLE SALES

INTERNET SADDLE SALES

HIGH QUALITY SADDLES FOR NATIONAL DISTRIBUTION

LEATHER TRADE BOOTS AND HANDBAGS

ENGLISH SADDLE MAKING

3

SA DDLE TECH

pathfinder leathers SADDLE COMPANY

SADDLE TREES FOR TRADITIONAL SADDLE MAKERS

SA DDLE TECH

patherfinder leathers BOOT COMPANY

HIGH QUALITY LEATHER FOR SHOES, BOOTS HANDBAGS

HIGH QUALITY SADDLE LEATHER FOR SADDLES AND BRIDALS

SA DDLE TECH

TRADITIONAL SADDLE MAKERS

NATIONAL SADDLE SALES

LOCAL TACK SHOPS

GOVERNMENT CONTRACTS

THE UNITED STATES EQUESTRIAN SADDLE MARKET 5,000,000 HORSES IN THE UNITED STATES $500,000,000 ANNUAL SADDLE SALES 500,000 SADDLES PER YEAR

“more bang for the buck”

Proprietary technology provides the American Indian Prevention Coalition with

EDUCATION / INDUSTRY / PRODUCTS / EMPLOYMENT / TRADITION / REVENUE THIS OPPORTUNITY SHOULD PERMIT THE AMERICAN INDIAN PREVENTION COALITION, ITSELF TO WEAN FROM DEPENDENCE ON GOVERNMENT GRANTS


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