FGBP PROOF

:: 2011.BUSINESS PLAN ::

Confidential : Do not distrinute without permission FERGO® Copyright © 2011. All rights reserved.


This plan will help us focus our efforts

around clarifying the vision and values that

will move the brand forward. It is our

roadmap for how we think we should evolve

and grow to achieve our vision. It will serve

as a tool for communication & training. It

will ensure that our entire team are all

working to the same philosophy. It is a

living, breathing document that we will use

to measure our progress, while still being

willing to adapt it to reflect new insights,

unexpected competitive challenges, and

changes in our business environment. In

short it is our company manifesto


McDONALD FERGUSON19654 N.W 27 AVE.MIAMI GARDENS, 33056This document contains con!dential information. It is disclosed to you for informational purposes only.Its contents shall remain the property of FERGO® INC. LLC and shall be returned to FERGO® INC. LLC when requested.



1.0 The Mission ........................

1.1 Executive Summary ............

1.2 The Story.............................

2.0 The Product ........................

3.0 Company Ownership...........

3.1 Intellectual Property............

4.0 Retail Location ...................

5.0 Market Demographics.........

5.1 Marketing (grassroots)........

5.2 Online ................................

5.3 Social Media Marketing .....

5.4 Marketing Campaign ..........

6.0 Operating Strategy .............

6.1 Market Objectives ..............

7.0 Present Company Status.....

8.0 Product Development .........

9.0 Celebrity Endorsements ......

10.0 Investor Offer Sheet ...........

11.0 Strategy for Growth ............

13.0 Financials ...........................

14.0 Income Statement & Profit..

pg.1

pg.1-2

pg.2

pg.3

pg.4

pg.4

pg.4

pg.5

pg.5

pg.6

pg.6

pg.7

pg.8

pg.8

pg.9

pg.10

pg.11

pg.12

pg.12

pg.13

pg.14

0.1.BUSINESS PLAN®

Confidential : Do not distr ibute without permission.FERGO® Copyr ight © 2011. Al l r ights reserved.

BELIEVE IN THE VISION AND SUPPORT THE DREAM :: WWW.FERGOSPORTS.COM :: 19654 N.W 27 AVE. MIAMI GARDENS°FL°33010°U.S.A

1

1.0 THE MISSION- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Fergo is committed to our mission to create superior athletic gear and products for the

athlete in all of us. Whether you are competing in athletic competition or competing in the

most important game of all: life. Our products are built on the passion of a healthier and

fitter lifestyle.

Our goal is to provide athletic gear and related products for peak performance through

innovative design, the use of superior fabrics, and advanced technology. It is our goal to be

the global provider of products that are designed to exceed the comfort and performance

needs of the everyday athlete.

Fergo is the number one solution for fashion forward active wear, customized team

uniforms and accessories. We design, develop, manufacture, market and sell all sports-

related (football, basketball, baseball etc….) apparel to limited markets throughout the

nation. We intend to expand, develop and add new products to our already existing product

line and broaden our current customer base by extending into other geographic areas.

Fergo (also referred to as “the company”) has made a splash in the ever-growing sports

apparel market through the diverse, pioneering design of its jersey dresses, outerwear,

swimwear and custom team gear. Now, Fergo plans to broaden and expand its brand and

product line by opening the company’s flagship retail store, revamping its marketing

campaign and developing new, innovative designs. It’s website, www.fergo.com, currently

serves as the face of the brand, featuring a wide array of athletic wear that is available for

purchase by teams, players and avid sports fans. The designs are created by CEO and lead

designer McDonald Ferguson and feature cutting-edge styles that are unavailable in the

market, such as our signature Jersey dresses and collegiate swimwear.

The sports apparel market is booming and caters to all segments and backgrounds from

the professional athlete to the die-hard sports fan. Just-Style projects that this industry will

reach $15.3 billion in sales by 2014. Between 2003 and 2008 the market grew by 8.5% and is

expected to experience the same growth rate between now and 2014.

The explosion of sporting apparel’s popularity is due to the increased visibility in the

national media, development of professional leagues, and growth of new high school,

college, and youth programs. Competition will come from Under Armor, Nike and Adidas,

all of which fail to serve the specific niche markets that Fergo caters to.

1.1 EXECUTIVE SUMMARY- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

http://WWW.FERGOSPORTS.COM


http://www.fergo.com

http://www.fergo.com

0.1.BUSINESS PLAN®



2

1.1 EXECUTIVE SUMMARY (CONTINUED)- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

The company will deploy a comprehensive marketing campaign under two main

categories, brand marketing and direct marketing to increase its industry presence.

Specific advertising endeavors include social media, endorsements, sponsorships, a

navigable e-commerce website, online ads, vendor booths, promotional giveaways, word

of mouth buzz, e-mail blasts, and direct sales efforts. Close attention will be paid to

generating mass brand awareness among the target audience, particularly female and

male fitness enthusiasts between the ages of 13 and up.

To achieve the company’s objectives, Fergo is seeking $1,000,000 in total funding through

outside investment. Secured funding will go toward marketing, manufacturing, expanding

the brand, employee salaries and insurance.

1.2 THE STORY - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Fergo is, in simple terms, a relatively new company with a lot of know-how and

experience. Even though this statement is contradictory, it’s absolutely true. Fergo’s

overall ideas and concepts have been in motion and evolving for many years through the

mind, eyes and hands of its very experienced founder, McDonald Ferguson.

McDonald is one of 37 children born to Bahamian parents. Almost from the very

beginning McDonald had to overcome many obstacles, including a handicap, in order to

finish high school and, against all odds, go on to attend the University of Florida on a

football scholarship.

While attending the University of Florida McDonald received a degree in fashion design

and merchandising. He also got the opportunity to be a part of history with the Florida

Gators by winning four S.E.C. Championships and a National Title. He eventually signed a

contract as a free agent with the Indianapolis Colts, but snapped his ankle in half during

training, thereby putting an end to his football career.

Anyone else would have been devastated, but not McDonald Ferguson. Accustomed to

facing adversity, he picked up the pieces and went on to create a very successful career for

himself in the apparel design industry. McDonald currently owns his own apparel design

and manufacturing business, Fergo.



0.1.BUSINESS PLAN®

Confidential : Do not distr ibute without permission.FERGO® Copyr ight © 2011. Al l r ights reserved. 3

2.0 THE PRODUCT - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Fergo is an existing retailer and custom uniform designer of athletic apparel, with the

intention of expanding its designs, product line, and market reach. This unique clothing

brand has diversified the activewear environment through its one-of-a-kind designs,

philosophy, and approach. The company’s objective is to successfully launch its initial line

of Collegiate Jersey Dresses™ for fall 2011 football season. Currently, the company is

focused on retail and custom uniform designs, and it will gradually move toward

becoming a wholesaler, supplying retail locations nationwide.

The aim of Fergo is to change the persona of activewear by providing the consumer with

fashion forward garments suited for both on and off the field, emphasizing individuality

and self-expression. Fergo’s product line is listed below. Which is projected to expand in

t h e

coming

years.


RETAIL PRODUCT LINE-UP

G COLLEGIATE JERSEY DRESSESG COLLEGIATE SWIMWEARG ACTICE-WEARG CUSTOM & STOCK UNIFORMSG FOOTWEAR G COMPRESSION GARMENTS

CUSTOM TEAM APPAREL

G BASEBALLG BASKETBALLG FOOTBALLG SOCCERG TRACK & FIELDG YOGA

ACCESORIES

G SPAT SOCKSG ARM SLEEVESG HATS & SKULL CAPSG WRIST & HEAD BANDSG GLOVESG WORKOUT BAGS



0.1.BUSINESS PLAN®



4

3.0 COMPANY OWNERSHIP- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Fergo, LLC is a Limited Liability Company registered in the state of Florida. The company

is owned by founder McDonald Ferguson.

Fergo conducts business from its flagship retail store, located in the Stadium Corners

Shopping Center, 19654 NW 27th Avenue, Miami Gardens, FL 33056. Stadium Corners is a

newly constructed shopping center that is shadow-anchored by a new Super Wal-Mart and

Home Depot. Other stores in the center include a Super Hess, Badcock, Family Dollar,

Pollo Tropical, Denny's and Tire Kingdom.

This prime real estate is also 1.5 miles from Sun Life Stadium (formerly Dolphin Stadium).

a multi-purpose sports and entertainment facility that is home to the Miami Dolphins,

Florida Marlins, University of Miami football, Discover Orange Bowl and other world-class

events. The stadium has been home to four NFL Super Bowls, three BCS college national

championships and two MLB World Series. Sun Life Stadium has two of the largest high

definition video boards and one of the longest LED ribbon displays in professional sports

as well as the biggest point-of-sale wireless system under one roof. Sun Life Stadium

recently received extensive renovations and improvements, making the venue the premier

stadium of the Americas. The company aims to build a strategic relationship with the

stadium and showcase its product line at key sporting events held there.

Located at the southwest corner of Miami Gardens Drive (NW 199th St) and NW 27th

Avenue, Stadium Corners is well positioned as an in-fill location to serve the needs of the

immediate surrounding residential communities. The property’s strategic location takes

advantage of the commuter traffic (75,000 cars per day) on NW 27th Avenue, a major

north-south corridor leading into Broward County and the City of Pembroke Pines just to

the north. Neighboring retailers average about $100,000.00 in sales per month.

3.1 INTELLECTUAL PROPERTY & PROPRIETARY RIGHTS- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Our apparel is marketed under trademarks Fergo and our F Mark. Other trademarks either

have been registered or applications are pending with United States Patent and Trademark

Office.

4.0 RETAIL LOCATION- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -



0.1.BUSINESS PLAN®



The retail sale of clothes and accessories is a more than 150-billion dollar a year industry

which has shown a steady continued growth for the past ten years. Performance athletic

wear has been a large part of this industry’s growth.

Furthermore, surveys done by the National Federation of State High School Associations

have stated that the number of participants in high school athletics has steadily increased

for the past 18 consecutive years. The survey also determined that nearly 55% of students

enrolled in high school participate in some type of athletics sport.

Sporting Goods Manufacturers Association (SGMA) sports participation report determined

that ¾ of Americans participate at least once in sports, fitness and outdoors activities

while 31.6 million U.S. children (ages 6-17) participate in team sports. Also, overall interest

by girls (females) in team sports at school and in community leagues is showing an

annual growth.

Based on this information, the future continued market growth and the consumer retail

opportunities associated with this growth look very promising.

5.0 MARKET DEMOGRAPHICS & PROJECTIONS- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Our marketing plan will be two-fold. Our principal strategy will take a community-driven

approach, departing from the top-down models of past lifestyle brand marketing. The

power of a successful grassroots marketing effort is striking. If executed effectively

grassroots momentum can get consumers and influencers in our key markets to care so

much about what we are doing that they become our cheerleaders and most vocal

supporters. Suddenly, we’ll have a credible, voluntary sales force that is carrying our

message forward with more velocity than a single marketing department.

We like to refer to this as the ripple effect. It starts with an initial splash of local

partnerships, frequent message reinforcement and loyal support from (unpaid) brand

ambassadors. From there, each positive association or interaction produces ripples about

our product, company and services that continues to expand throughout the community.

The end results of our grassroots marketing will be strong, lasting relationships with our

target consumer, strengthened awareness and increased sales. By being a valuable

resource and helping tie our business objectives to the community’s needs, we can create

a win for everyone.

5.1 MARKETING (GRASSROOTS)----------------------------------------------------------------------------------------------------------------

5



0.1.BUSINESS PLAN®



6

Our main sales channel will initially be in physical retail and online. Through our on-line

virtual store, we seek to create an upscale, inviting environment that further enhances the

brand and builds customer demand for Fergo merchandise. Furthermore, the Fergo

website will feature an entire section devoted to community, that will include a forum and

a custom program where customers can purchase product, rate new designs and make

suggestions.

5.2 ONLINE----------------------------------------------------------------------------------------------------------------

Like many companies, we're becoming increasingly involved in social media as a means

of promoting our brand vision. Currently, bloggers outnumber traditional journalists 100

to one. According to Advertising Age, “There are about 15 million active blogs read by 57

million people, a number that gives bloggers great credibility, power and influence as

sources of information for everything from news to corporate reputations to product

purchasing.” This makes blogger outreach an essential component of online marketing

and digital public relations. We will pinpoint high-authority bloggers or influence makers

who can serve as third party ambassadors for our brand and build long-term, mutually

beneficial relationships with them. We will diligently monitor what they are saying about

our brand and respond to their praise and concerns. We’ve already begun to develop a

dynamic social presence online that will engage our audience through blogging, Twitter,

Facebook, podcasts, video and niche lifestyle communities.

We have recently set up our Fergo Payvment E-Commerce

Storefront on Facebook which includes features such as:

1 Professional storefront.

2 Capacity to sell an unlimited number of items.

3 500 million Facebook users can search, discover, and

purchase our products.

4 Built in admin.

5.3 SOCIAL MEDIA MARKETING----------------------------------------------------------------------------------------------------------------



0.1.BUSINESS PLAN®



7

As cash flow increases we’ll couple our grassroots strategy with more standard methods

of marketing. Fergo will launch an extensive image-advertising program, that addresses

the lifestyles and aspirations of our target customers. Through edgy, high-impact, visual

advertising campaigns, we will attract customers who are intrigued by the thoughtful,

energetic and aspirational imagery. We believe that an emphasis on non-product specific

lifestyle advertising will promote brand awareness as well as numerous social initiatives

that we support. The campaigns, which emphasize a forward-looking view of fashion, will

be communicated to consumers through a variety of means including fashion magazines,

bus shelters, in-store displays and customer mailings. In addition, our public relations

department will communicate directly with fashion editors and celebrity stylists and

supply them with a continuous flow of product information. In addition, to promote the

clothing line, Fergo will utilize various marketing communications, such as:

1 Showcasing upcoming collections at premier trade shows such as Magic, Pool, Project,

virtual trade shows and fashion weeks where our sales force can place orders.

2 Endorsements: By allowing various celebrities to wear and promote Fergo, the brand

name will be further established.

3 Developing a Fergo phone app that will initially keep our customers informed on new

merchandise and where it can be purchased, as well as events and initiatives. Eventually

we will generate sales from this mobile app.

4 The company will launch a direct mail marketing program. We’ll utilize these direct-to-

consumer mailings to effectively communicate our brand strategy to our best customers,

build brand awareness and increase customer acquisition.

5 Print advertising: Fergo will advertise in national publications (Sports Illustrated, XXL,

DNR, Vibe, Details) as well as local newspapers and magazines (The Miami Herald, New

Times, City Link, South Beach Magazine). We’ll also aggressively acquire editorials on our

brand that will highlight our product and its positive social initiatives.

6 Developing promotions and giveaways that will drive traffic to www.fergo.com

5.4 MARKETING CAMPAIGN----------------------------------------------------------------------------------------------------------------



http://www.moovment.com

http://www.moovment.com

0.1.BUSINESS PLAN®



8

Our objective is to satisfy the fashion needs of the modern, hip, sophisticated, body-

conscious consumer who takes pride in his or her appearance. The principal elements of

our operating strategy to achieve this objective are as follows:

1 Provide distinctive fashion throughout a broad product line. Our designers and

merchandisers are inspired by global fashion trends. They interpret contemporary

designs, colors and fabrications into products to address the lifestyle needs of the Fergo

customer. Our in-house design team allows us to quickly react to fashion trends, bringing

newness into the merchandise mix to complement our core assortment.

2 Vertically integrate design, production, merchandising and retail functions. Our vertical

integration enables us to respond quickly to changing fashion trends, reduce risk of excess

inventory, and produce distinctive quality merchandise of exceptional value.

3 Manage merchandise mix. Our approach to merchandising and proactive inventory

management is critical to our success. By actively monitoring the sell-through rates of our

products in boutiques and department stores, we are able to respond to emerging trends

6.0 OPERATING STRATEGY- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

6.1 MARKET OBJECTIVES & TARGETS- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1 Achieve annual sales of at least two million dollars by the end of this year (2011).

2 Continue to increase sales by 50% in each and every subsequent year.

3 Maintain a net profit margin of at least 35% to 45%.

4 Expand into the retail market with new product lines.

5 Generate brand awareness and recognition throughout the industry.

6 Increase company presence at various industry trade shows.

7 Provide comprehensive customer service which in turn will create fiercely loyal

customers.

8 Continuously develop and design new and unique products to stay ahead of the

competition.



0.1.BUSINESS PLAN®



9

As of 2011, Fergo has already bid out approximately $350,000 to $450,000 worth of work

and already has verbal or written commitments on about 75% of those jobs. Most of this

current work has to do with uniform production for high schools, youth sports and athletic

associations. However, Fergo also has commitments (under contract) and potential

commitments (currently being negotiated) with many high profile clients which will

greatly increase our customer base and profit potential over the course of this year.

Some of these customers and contracts are as follows:

1 Fergo is the major sponsor of the South Florida Youth Football League, which has an

enrollment of over 10,000 kids and over 4,000 coaches.

2 Easton-Bell Sports Company is responsible for handling Riddel, Easton, Bell and Giro

sports brands. Fergo has been approached by this company and asked to re-design and

potentially manufacture their entire line of athletic apparel. We are currently negotiating.

3 Under Armour is extremely interested in our unique patented design Slacked-up Spat

Socks. We are currently talking to them and negotiating a possible deal which would allow

Under Armour to market and distribute the socks worldwide and pay a royalty to Fergo.

4 Fergo, in conjunction with Ego Sports Inc., has been contracted by the State of

Maryland School Board and Parks and Recreation Division to design and manufacture all

of their sports uniforms. (This contract is for several thousand uniforms)

5 Pigskin Academy Sports (PAS) is a nationwide sports consulting firm which helps

athletic programs re-structure, organize, establish or re-vamp their existing game plans to

get the schools back on the winning track. Part of this program’s re-structuring process is

changing the image of the overall program. Fergo has a contract with PAS to be the

exclusive uniform provider for all of their clients.

6 Black College Merchandising Agreement has been offered to Fergo by New Vision

Holdings. This agreement would give Fergo the authority to handle the retail

merchandising for all of the black colleges. (Contract was originally held by Russel

Athletics.) Fergo has yet to make a decision on this agreement.

7.0 PRESENT COMPANY STATUS- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -



0.1.BUSINESS PLAN®



10

Our disciplined product development process emphasizes the reduction of lead times. This

allows our merchants to gain as much information as possible concerning current fashion

trends before making fabric or product purchase commitments. We’ll control the process

by focusing on key color selection, fabric order, pattern development and production order

deadlines. We’ll establish the deadlines to ensure an adequate flow of inventory into the

stores. While product development is seasonal, we’ll make commitments monthly based

on current sales and fashion trends. This enhances our ability to react promptly to

customer demand. Merchandising teams and designers will work together to continuously

develop new styles to be presented at monthly product review and selection meetings.

These new styles incorporate variations on existing styles in an effort to capitalize further

on the more popular silhouettes or entirely new styles and fabrications that respond to

emerging trends or customer preferences. In addition, a detailed merchandising plan

supports the product development process. This merchandising plan will include sales,

inventory and profitability targets for each product classification. We’ll update the

merchandising plan on a semi-monthly basis to reflect current sales and inventory trends.

The plan will then be distributed throughout the merchandising department. We’ll use the

updated merchandising plan to adjust production orders as needed to meet inventory and

sales targets.

8.0 PRODUCT DEVELOPMENT- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -



0.1.BUSINESS PLAN®



11

9.0 CELEBRITY ENDORSEMENTS- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

McDonald Ferguson’s proven ability to design and manufacture quality apparel has

allowed him the opportunity to work for and with some of the best known athletes, artists

and celebrities.

McDonald designed the apparel for Zo Summer Groove, which was worn by Dwayne

Wade, Alonzo Mourning, Tim Hardaway and many others.

McDonald designed apparel for Scott Sapp, the lead singer for the rock band Creed, which

has sales of 48,000,000 albums worldwide.

McDonald designed and produced the jerseys for Magic Johnson’s Celebrity All Star

Basketball Game, which were worn by Snoop Dogg, Bow Wow, Terrell Owens and B2K, to

name a few.

McDonald designed the uniforms for the first annual Battle of the Stars Youth Football

Classic, which were worn by Snoop Dogg, Nelly, Diddy, Luke, Trick Daddy, Tone and

several other participants.

Celebrity model, actress and singer Paris Hilton wore a version of McDonald’s original-

design jersey dress in her movie début, Pledge This.

Luther Campbell, famous rapper, record producer and radio show host also wears

McDonald’s designs.

:: Snoop Dogg :: :: Paris Hilton :: :: Dwayne Wade ::



Dollars 2011 2012 2013 2014 2015Gross Revenue $1,600,000 $4,000,000 $6,000,000 $11,400,000 $23,100,000Investor Return (20% Share) $0 $287,050 $536,150 $1,275,250 $2,957,750

11.0 STRATEGY FOR GROWTH

0.1.BUSINESS PLAN®


10.0 INVESTOR OFFER SHEET- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


USE OF FUNDS

The company is currently seeking $2,500,000 in equity investment financing. These funds will be used for expansion, primarily launching our Fall 2011 line of apparel product, hiring new staff, and implementing marketing activities.

Long term plans are for the company to aggressively launch its online retail business; work with customers to develop in-store programs for new products and expand regionally and nationally its retail specialty stores.

THE OFFER

We seek $2,500,000 from an investor, preferably with at least a preliminary understanding of the apparel business and a passion for sports. For this investment the returns are:

G 20% total equity in FERGO, Inc.

G 2 times return on the original investment by year 5

G An internal rate of return of 283% over 5 years

Fiscal Year End: Revenue

2011 Rev: $1.6m2012 Rev: $4m2013 Rev: $6m 2014 Rev: $11.4m

2015 Rev: $23.1m

The company’s objective is to successfully launch its initial line of Collegiate Jersey Dresses™ for fall 2011 football season. The company will employ a regional sales strategy in route to securing national coverage. Aiding in this effort is an aggressive regional sales and marketing campaign that will focus initially on penetrating the Southeast region (Florida, Georgia, Alabama, Louisiana, Arkansas and South Carolina).

Everyone knows that, to be successful in any business, you need to acquire and manage great customer relationships. The apparel business is no different. One of the keys to FERGO’S sales and marketing strategy, lies in our partnership with Oracle’s Siebel Sales Force Automation Software. Scheduled to be implemented immediately in the first quarter of 2011, Siebel will provide the FERGO Brand with a distinct competitive advantage and fuel the momentum necessary to effectively execute the company’s strategy in the marketplace.

POTENTIAL CUSTOMERS

FootLocker

Dicks Sporting Goods

Big 5 Sporting Goods

Hibbett Sports

Macy’s

University Fan Stores

Specialty Boutiques

12



0.1.BUSINESS PLAN®



FINANCIALS

We expect sales to increase at a fairly rapid rate, doubling in year two as the brand gains momentum and we implement a solid internet retail strategy. As our customer base increases, we expect controlled growth of between 50% - 75% in years three and beyond.

The following is a five-year revenue forecast. Direct costs include all costs which can be directly tied to revenue and include “cost of goods.”

!!! !! Revenue Forecast !! !!"#$%&! Year 1 !"#$%&% !"#$%'% !"#$%(% !"#$%)%

'(%)$*!+)*(&!! ,! -,.,,,! /,.,,,! 01.,,,! 230.1,,!456*(&)*(!+)*(&! 7,.,,,! 8,.,,,! 9,.,,,! 2/1.,,,! -,-.1,,!

*+,#-%./0,1% (23222% 423222% 5&23222% &523222% '623222%!! !! !! !! !! !!:&%$;)%(<!=)>?$#!@(>!A%(;! !! !! !! !! !!

'(%)$*!+)*(&! ,B! 00B! 00B! 00B! 00B!456*(&)*(!+)*(&! 11B! 11B! 11B! 11B! 11B!

!! !! !! !! !! !!'(C(#D(! !! !! !! !! !!

'(%)$*!+)*(&! E,! E2.8,,.,,,! E-.7,,.,,,! E8.,,,.,,,! E21.,,,.,,,!456*(&)*(!+)*(&! E2.8,,.,,,! E-.7,,.,,,! E/.8,,.,,,! E1.7,,.,,,! E3.2,,.,,,!

*+,#-%7"8"/9"% :53;223222% :(32223222% :;32223222% :553(223222% :&'35223222%!! !! !! !! !! !!F$>(G%!"#$%!H6&%&! !! !! !! !! !!

'(%)$*!+)*(&! ,B! -/B! -/B! -/B! -/B!456*(&)*(!+)*(&! 71B! 71B! 71B! 71B! 71B!!! !! !! !! !! !!

F$>(G%!H6&%&!6I!'(C(#D(! !! !! !! !! !!'(%)$*!+)*(&! E,! E/87.,,,! E178.,,,! E2./81.,,,! E/.72-.1,,!456*(&)*(!+)*(&! E0-3.,,,! E2.,9-.,,,! E2.8/3.,,,! E-.710.,,,! E/.831.1,,!

<9=*+,#-%>+1,1%+?%7"8"/9"% :@&43222% :53();3222% :&354(3222% :'34&&3222% :@32643222%!

REVENUE PROJECTINS BY YEAR

REVENUE FORECAST

13



0.1.BUSINESS PLAN®



! Income Statement - 5 Years

!! !! !! !! !! !! !!Period Starting: Year 1 Year 2 Year 3 Year 4 Year 5 Totals

Revenue

Retail Sales 0 1,600,000 2,400,000 6,000,000 15,000,000 25,000,000

Wholesale Sales 1,600,000 2,400,000 3,600,000 5,400,000 8,100,000 21,100,000 Total Sales 1,600,000 4,000,000 6,000,000 11,400,000 23,100,000 46,100,000

Direct Costs of Revenue

Retail Sales 0 364,000 546,000 1,365,000 3,412,500 5,687,500

Wholesale Sales 728,000 1,092,000 1,638,000 2,457,000 3,685,500 9,600,500 Total Cost of Goods Sold 728,000 1,456,000 2,184,000 3,822,000 7,098,000 15,288,000

Gross Profit 872,000 2,544,000 3,816,000 7,578,000 16,002,000 30,812,000 Start-up Expenses

Legal 10,000 10,000

Stationary, etc. 2,500 2,500 Equipment/ Supplies 525,000 525,000

Consultants 10,000 10,000

Licenses 5,000 5,000 Operating Expenses

Salaries and wages 265,000 331,250 357,750 384,250 410,750 1,749,000 Employee benefits

Payroll taxes

Rent 6,000 6,000 6,000 6,000 6,000 30,000 Utilities 5,000 5,000 5,000 5,000 5,000 25,000

Technology

Desktops 3,000 3,000 6,000

Server 2,000 2,000 4,000

Printers (BW & Color) 2,500 2,500 5,000

Software 2,000 2,000 4,000

Copier / Fax 500 500 1,000 Website Hosting & Development 10,000 5,000 5,000 10,000 5,000 35,000

Other Expenses

Travel 10,000 10,000 10,000 10,000 10,000 50,000 Telephone 5,000 5,000 5,000 5,000 5,000 25,000

Postage 1,000 1,000 1,000 1,000 1,000 5,000 Office supplies 5,000 5,000 5,000 5,000 5,000 25,000

Advertising 200,000 200,000 200,000 200,000 200,000 1,000,000

Marketing/promotion 500,000 500,000 500,000 500,000 500,000 2,500,000 Professional/Legal fees 10,000 10,000 10,000 10,000 10,000 50,000

Research and development 25,000 25,000 25,000 50,000 50,000 175,000 Bank charges 500 500 500 500 500 2,500

Depreciation

Miscellaneous 5,000 5,000 5,000 5,000 5,000 25,000 Total Operating Expenses 1,610,000 1,108,750 1,135,250 1,201,750 1,213,250 6,269,000 Operating Income (738,000) 1,435,250 2,680,750 6,376,250 14,788,750 24,543,000

Interest income (expense) 0

Other income (expense) 0 Total Non-operating Income (Expense) 0 0 0 0 0 0 Income (Loss) Before Taxes (738,000) 1,435,250 2,680,750 6,376,250 14,788,750 24,543,000 Income Taxes 0 Net Income (Loss) (738,000) 1,435,250 2,680,750 6,376,250 14,788,750 24,543,000 Cumulative Net Income (Loss) (738,000) 697,250 3,378,000 9,754,250 24,543,000 24,543,000

!

INCOME STATEMENT & PROFIT & LOSS

14



Documents

FGBP PROOF