REEF BP

Investors Package Prepared for: Seed Capital Investors Prepared by: Kelby McCan February 22, 2019 Version: 004 1!

TABLE OF CONTENTS Section 1: Executive Summary 1.1 Overview……………………………………………….…..………………………………………… 1.2 Mission Statement…………………………………………………………………………………… 1.3 Vision Statement…………………………………………………………………………………….. 1.4 Four Pillars…………………………………………………………………………………………… 1.5 Buisness Model……………………………………………………………………………………… 1.6 Opportunity………………………………………………………………………………………….. 1.7 License……………………………………………………………………………………………….. Section 2: Company Summary 2.1 Company Ownership………………………………………………………………………………… 2.2 Start Up Schedule…………………………………………………………………………………… 2.3 Seed Capital…………………………………………………………………………………………. 2.4 Location……………………………………………………………………………………………… 2.5 Facilities………………………………………………………………………………………………. Section 3: Products and Services 3.1 Product and Service Descriptions……………………………………………………………….. 3.2 Competitive Comparison…………………………………………………………………………. 3.3 Product Sourcing………………………………………………………………………………….. 3.4 Future Products and services…………………………………………………………………….. Section 4: Market Analysis Summary 4.1 Industry Analysis…………………………………………………………………………………….. 4.2 USA Market Analysis………………………………………………………………………………… 4.3 USA Ingredient Analysis…………………………………………………………………………….. Section 5: Strategy Implementation Summary 5.1 Strategy Pyramid…………………………………………………………………………………….. 5.2 Competitive Edge……………………………………………………………………………………. 5.3 Strategic Alliances……………………………………………………………………………………. 5.4 Domain Dominance………………………………………………………………………………….. 5.5 Value Propositions/Initial Copy……………………………………………………………………… 5.6 Marketing Strategy…………………………………………………………………………………… 5.7 Sales Strategy………………………………………………………………………………………… 5.8 Milestones…………………………………………………………………………………………….. Section 6: Management Summary 6.1 Organizational Structure…………………………………………………………………………….. 6.2 Management summary………………………………………………………………………………. !2

TABLE OF CONTENTS CONT. 6.3 Management Job Descriptions……………………………………………………………………… Section 7: Financial Plan 7.1 Important Assumptions 7.2 Key Financial Indicators 7.3 Break Even Analysis 7.4 Projected Profit and Loss Five Years 7.5 Projected Cash Flow For Five Years 7.6 Projected Balance Sheet For Five Years 7.7 Business Rations For Five Years 7.8 Long Term Plan Section 8: Executive Summary 8.1 Objectives 8.2 Mission 8.3 Keys to Success 8.4 Exit Strategy !3

SECTION 1.0 EXECUTIVE SUMMARY 1.1 Executive Summary FOR THE REEF Inc is a commercial eco-conscience development project that provides truly reef safe sun protection products to consumers while also protecting the environments they love. Reef strives to lead the industry in eliminating ALL coral bleaching chemicals, nano particles, and other harmful chemicals commonly found in sunscreen today. While many other sunscreen brands have “reef safe” as a secondary mission, Reefs primary mission is reef safe. Success will be measured monetarily, by positive consumer social media engagement, and our level of participation in Coral conservation projects. General Management will be conducted by Kelby McCan while regional management will be decentralized to active partners. Decisions will be made by voting shares (Class A/B), with minutes and treasury updates available on the website for all share holders. The opportunity for REEF to land on its feet in an already competitive market stems from the global push toward eco-conscious sunscreens. Hawaii already voted to make illegal sunscreens that contain reef bleaching ingredients by 2021, with many other countries having already done so, and even more countries or states voting on resolutions in the near future. Large sunscreen companies are fighting this legislation as they deem their chemicals are reef safe and are holding onto their current formula’s. This is to say we are in the calm before the storm of a need for reef safe products. There are multiple self determined “reef safe” sunscreens available to the consumer but no governing body that has established what “reef safe” means. Currently you could legally put “reef safe” on a can of motor oil. REEF will gain “reef safe” credibility by becoming partners with the worlds leading coral conservation non profit. By partnering with this non profit, REEF will have global credibility over night. This combined with our marketing strategy will assure REEF a strong entrance into the market. FOR THE REEF Inc seeks to begin yielding a profit to investors at the end of year 2 with a projected net income of 80k. At year 4 projected net profits is 275k. REEF Inc will initially work off a zero debt company holding, with no business loans and seed funding placed into the company at inception. 1.2 Mission Statement FOR THE REEF Inc Provides affordable reef safe UV protective products to consumers while protecting the environments they love. 1.3 Vision Statement Inspire a passion for our worlds reefs and revolutionize the sun care industry by making all natural and biodegradable packaging the popular choice. 1.4 Four Pillars FOR THE REEF inc is committed to providing consumers a solution to enjoying the beauty of our planet while not inflicting damage. All our products are thought through cradle to grave for biodegradability . Our customers should be confident that what they buy today will be gone tomorrow. REEF has an established 4 pillars that decisions/ successes are measured against. 4!

EXECUTIVE SUMMARY CONTINUED 1: Quality over Quantity 2: People Before Profits 3: Eco or No 4: Ambassadorship 1.5 Buisness Model Structured as a Delaware C-Corp FOR THE REFF inc will be appropriately structured for further investment by venture capital firms in the future. Though initial cost will be slightly higher to do so, the cost later to restructure is 10x that of structuring this way at the outset. \"In today’s ever-changing world, organizations are using a disruptive business model design to build unique approaches to creating value and organizations that are ready for the future. At all scales, from micro-enterprise to multinational, operating in multiple settings and contexts, rethinking business models has become one of definite ways of offering customers something truly better than what already exists. To ensure sustainable business growth, businesses need to navigate modern economic development and societal issues and in so doing articulate what meaningful, inclusive and enduring value looks like.” - entrepreneurmag.co.za Following the linear business model that we are all accustomed to would make this endeavor almost impossible without substantial capital on the front end. By rethinking how to create value propositions and value capture we will leverage a Multi-capitalist approach, understanding that value creation through a business model is not just composed of by financial capital but also includes other capitals, including intellectual, natural, relational and many others. This will lead to participatory consumers over transactional, creating strong brand affiliation. Most companies become successful by reinvesting into their company at the outset, then later in their development begin charitable work. We flip this on its head by investing into our charitable contributions in the outset of our business. This in turn produces credibility not based on market share but based on commitment to mission and the voice of witnesses already established in conservation positions of authority. 1.6 Opportunity We plan to exploit three market voids. 1. Reef Safe: By 2021 multiple states and countries will have adopted reef safe only sunscreens. Those sunscreens will probably have to demonstrate the absence of specific chemicals in order to be allowed to participate in the market place. As mentioned prior, reef safe is a meaningless term currently, but by 2021 there will be a standard and the market will have products to answer that standard. This gives REEF 2 years to establish itself as the leader of reef conservation based UV products. 2. Reef First: Reef safe is generally a secondary mission for UV protection companies. Their companies name and web presence generally leave coral conservation in the background or as a “highlight” and not so much !5

EXECUTIVE SUMMARY CONTINUED the substance of their product. By incorporating REEF into our name, having clear coral imagery, partnering with conservation non-profits, and our web presence championing eco consciousness and coral conservation, there will be no confusion about what our intention or mission is. Our loyalty will be to the mission, the missions loyalty to the ecosystem and thus people focused. This promotes a circular concept of eco conscious people sharing our mission focus, and becoming loyal to the brand. This is what we mean by participatory rather than transactional customers. 3. Domain Affiliation: To date most sunscreen manufacturers have completely ignored the role domain name search engine recognition plays in peoples search for reef safe sun protection products. This has allowed REEF to purchase many .com domains affiliated with “reef safe”. Once established Reef will continue to buy up more domains that reflect Coral Safe and Reef Safe messages. These domains will do one of two things. They will either point to our domain or have comparison articles discussing “The Best Reef Sunscreen” where ours, will of course, reign champion. 1.7 Licenses OTC sunscreen that is currently not fully regulated by the FDA. We will hold a resale license along with a license to do conduct absentee business outside of Delaware, and hold any certifications appropriate to our product (organic, non-nano, etc). !6

SECTION 2.0 COMPANY SUMMARY 2.1 Company Ownership FOR THE REEF inc will be owned by share holders split up as common and preferred stock holders following the popular A-B-C split of common shares; B shares being the Exec shares. Voting will be conducted by A and B class shares on all major decisions. B shareholders are eligible for board positions. 2.2 Start-Up Schedule 6 month development/start up trajectory. March: Formula development, Non profit partnership, Declare manufacturer,Third party testing, Seed Capital, begin C-CORP April: Finalize C-Corp, Sellers permit, Web/Social media build, Ship product 75% sea 25% air, Launch product. May: Initial push into active members communities, Amazon integration, social media automation, Partner promotion Jun/July: Brick and Click Sales, Streamline Media presence after 2 months market data. Aug/Sep: Final months of US coastal sales, Movement toward mountain affiliation, International sales. October/Nov: New Product Development, Winter season sales, International sales Dec: Season promotions, Partnership Contribution donations, Tax preparations, finalize new product. 2.3 Seed Capital To make strong entry into the market beginning with 40k is preferred. This will be accomplished by offering corporate shares in an Active Reverse Value model. Generally more valuable stocks like those conveying voting rights, are priced higher. In our model we will require investors who wish to purchase larger portions of the available shares to participate in the day to day sales or operations. Participation combined with investing a larger amount of capital reduces the cost of their investment purchase. By doing so we reward those who will actively grow the brand from the outset. Investors who sign on as active will be issued Class B Vested Shares. These shares are issued to active partners immediately but come with requirements to participate in the building of the company. During the first two years Class B shares are received, the owner of said shares can be motioned to a vote of “Non-Activity” by the board requiring a second and a 65% majority of the vote to be affirmed. This will initiate a transfer of their Class B shares to the undistributed shares holding and an issuing of an equal company share holding of Class A Shares. This clause is eliminated 2 years from the date of issue, or transfer (“restarts the clock”), of class B shares. 2.4 Location Port Aransas will be our declared home headquarters as commercial property has already been secured through previous projects. This will provide a professional near beach office and reduce eliminate warehousing costs to REEF. In-home Satellite offices will be established by our organic active members. Maintaining a home office concept in the initial stages will lessen overhead strain and allow us to branch out to multiple states over night. !7

SECTION 2.0 COMPANY SUMMARY CONT. 2.5 Facilities Physical locations owned/rented by REEF will be kept to a minimum to reduce overhead costs. I will work from my office in Port Aransas that is already established and our warehousing will be done on sight as well. The only significant purchase of assets outside of product will come in advertising capabilities like tents, flags, etc. With the ability to connect through VTC, email, etc, while still having a commercial office for interested investors or corporate meetings, we can leverage profits towards volume and growth of our products instead of finance draining overhead. The first large sample randomized study of Working From Home (WFM) completed by Stanford and published in their “Quarterly Journal Of Economics” discusses the cost savings of employee’s working from home. “The overall impact of WFH was striking. The firm improved total factor productivity by between 20% to 30% and saved about $2,000 a year per employee WFH. About two thirds of this improvement came from the reduction in office space and the rest from improved employee performance and reduced turnover.” - Stanford University on March 3, 2015 8!

SECTION 3.0 PRODUCTS AND SERVICES 3.1 Products and Service Description Phase 1: Initial launch will consist of SPF 30 & 50 Lotions. If formulations finalize Face and Baby lotions may also be available for initial launch but may push to second phase. Phase 2: Bolstering our product line with mineral based spray sunscreens and Lip Balms. Phase 3: Tanning oils and SPF 15 line lotions/sprays. 3.2 Competitive Comparison “Carefully compare the opposing army with your own, so that you may know where strength is superabundant and where it is deficient.” - SunTzu Delving into the private sun screen market you can find many start ups with no revenue analysis, most are structured as LLC’s, and few have any partnerships with Nonprofits or research companies. Also to note is that even our two largest competitors have very few social media followers in comparison to their market value. Leveraging our partnership with nonprofits along with social media engagement with eco conscious web personalities, we will in short time surpass the competitions followers. Though publicly traded companies like Copper-tone will be our largest competition, our strongest will be these smaller brands which have already converted consumers away from Big Brand names. This “Brand Evangelism” is accomplished through Value proposition and conversion which we will discuss later. Sun Bum's headquarters is in Cocoa Beach, Florida. Sun Bum has a revenue of $6.4M, and 74 employees. Sun Bum's main competitors are EltaMD, Tidewater Skin Care and Surf Ontario. As of July 2018, Sun Bum has 45.6K fans on Facebook and 6.6K followers on Twitter. Badger Company's headquarters is in Gilsum, New Hampshire. Badger Company has a revenue of $16M, and 100 employees. Badger Company's main competitors are Goddess Garden, Dr. Bronner's and DERMA E. As of February 2019, Badger Company has 34.3K fans on Facebook and 13.2K followers on Twitter. Tidewater Skin Care is a Private company. Tidewater Skin Care has 39 followers on Owler. Tidewater Skin Care has an estimated revenue of <$1M and an estimate of less <10 employees Bare Republic has an estimated revenue of <$1M and an estimate of less <10 employees. 3.3 Product Sourcing We currently have two possible manufacturers, one in Taiwan and the other in Tao’s New Mexico. There are +/- to both. As negotiations near the final stages you will be informed of the manufacture and firm PPU’s. Currently PPU is between $1.6-$2.5 depending on variables inherent to the product and packaging. We are sourcing biodegradable plastics for our bottles that will be either casein, hemp, lignin, or PLA based products which tracks with our Eco or No pillar and affirms our commitment of a Cradle to Grave approach. Once a firm PPU is established, this will be weighed against over seas shipping and the value of “MADE INTHE USA”. 3.3.1 Product Sourcing Over Seas Concern with overseas shipping is three fold. One: Traveling to our manufacturer is more costly and time consuming if a face to face is needed to fix issues that may arise in packaging or product quality. 9!

PRODUCT AND SERVICES CONTINUED Two: Cost of shipping over seas, import taxes, and brokers fee’s will eat up some of our PPU savings. Though it will probably only add .20 cents per unit, it reduces the value off a lower production price. Three: A reduction in shipping flexibility. From the beginning of production to market will be roughly 60 days. There will be no way of shortening this without taking on expensive express shipping by air. This means planning our production 2 months in advance and projecting sales that may or may not happen. Over seas purchases will also have to be done in 5,000 bottle increments to reduce the effect of all the shipping fees. By having a manufacturer stateside, we will be able to take short notice orders and only need to plan 20 days out. Retailers hearing they may have to wait 45-60 days for product may choose a product more readily available. A 2 week waiting period would be much more palatable. Cost of overseas fee’s and a one round trip visit per year will be added to the manufacturer cost. If the overall savings is less than .20cents per unit, we will choose stateside production. 3.3.2 Product Sourcing USA This is our preferred route. Having MADE IN THE USA on our product would increase it’s presumed value. That it would be eco conscious would represent our nation in a positive way. I know we would all prefer to say our product is made in America Outside of these subjective valuations, there are objective reasons for being manufactured in the USA. These reasons solve the problems associated with over seas shipping. By having a manufacturer stateside, we will be able to take short notice orders and only need to plan 20 days out. We eliminate import taxes, broker fees, overseas shipping, and the volatility of country relations. It also makes traveling to our manufacturer convenient and less costly. Though the preferred route, we are still waiting on hard numbers from both manufacturers to make accurate calculations. 3.4 Future Products and Services Initially we will be looking to engage the larger share of the sun care market which is protective. This will accomplished by phases 1-4. Following the successful implementation of these initial products we will then move into the smaller markets of tanning and post sun care markets. At current investment these developments are slotted for year two. If capital is raised ahead of assumed timelines we could move to these markets sooner than expected 1! 0

4.0 MARKET ANALYSIS 4.1 Industry Analysis Global Sun Care market size is estimated to be at $8.7 billion at the end 2025 and is projected to grow at a CAGR of 3.5% to $11.1 billion by 2025 driven by rising awareness over the importance of sun protection and launch of new products. Growth in the coming years will also be driven by the development of more effective sun care formulations featuring natural and organic ingredients. It is segmented into three product categories: Sun protection products, After-sun products, Self-tanning products. Currently, Sun-protection products segment represents ~80% of the overall sun care market. Sun Care represents 12% of the overall global Skin Care product market. Tanning After Sun Protective 4.2 USA Market Analysis The U.S. sun care market size was estimated at USD 1.95 billion in 2016. The growing consumer awareness regarding the ill-effects of over exposure to ultraviolet (UV) rays on the undefended skin is expected to propel growth. Furthermore, rising utilization of organic sun care products owing to absence of synthetic chemicals in the formulation is expected to drive growth over the forecast period. Rising awareness regarding personal health from synthetic chemicals is expected to provide an impetus to organic personal care market over the forecast period. Enhanced standard of living coupled with increasing disposable income of the middle-class working population in economies of North America, including the U.S., is expected to propel sun care market growth over the forecast period. !11

MARKET ANALYSIS CONT. Competition in the market is increasing owing to the rising number of manufacturers and suppliers while private label brands are gaining pace towards growth. These are usually preferred over branded products in North American countries including the U.S. owing to the reasonable cost which is likely to boost the market over the next eight years. To note, product differentiation in the sun care market is low which increases the competition based on brand loyalty, pricing, and regional presence. This is expected to increase owing to new players entering the market in the U.S. All natural consideration: U.S. customers are preferring organic cosmetic products, to include sun care, to avoid synthetic chemicals. Moreover, the industry players are investing in the organic products which are likely to boost the market. 4.3 US Ingredient Segmentation The sun care market in the U.S. is characterized presence of numerous raw material suppliers responsible for supplying the materials for manufacturing sun care products. The raw materials utilized for the manufacturing of sun care consists of various colorants, guar gum, benzophenone, and titanium dioxide. Titanium dioxide is widely used because it is a natural mineral and provides protection against broad spectrum which makes it a popular ingredient. Raw material production is primarily concentrated in the U.S. owing to high availability of these products. BASF, Cargill, and DuPont are few key raw material manufacturers and suppliers of the sun care products. !12

5.0 STRATEGY IMPLEMENTATION 5.1 Marketing Strategy Pyramid Summary Brick & Click Guerilla Social Mission Domain Media Dominance Non Profit Alliances 5.2 Competitive Edge Our Strategy is unique in that it utilizes alliances with non profit and research centers to cement together the corner stones of our marketing pyramid, Domain Dominance and Guerrilla media. These three elements will uphold our Click and Brick sales by funneling customers to our website, websites that recommend our product, amazon, and strengthening brand familiarity. 5.3. Strategic Alliances With Non Profit & Research Programs Typically companies pool their initial resources to buy/ship more product and spend in marketing campaigns. Though this has been a successful approach by countless companies, it relies heavily on either the products unique characteristics or brand media conversion. After a company begins to have success and is able to allocate funds to philanthropic endeavors, they do so to show the “Empathetic” side of the company and hope this converts consumers on the fence to cross over and purchase their products. Where REEF differs from most major brands is our reliance on our Non Profit partnership. Gaining eco consumer trust requires empathy and authority. By effectively demonstrating both we create participatory consumers and not transactional ones. These consumers will invest into our mission and become our advocate. !13

STRATEGY IMPLEMENTATION CONT. As we enter the market as an Eco Mission brand how will we stand out from all the other companies offering to solve a customers dilemma of purchasing a sun protection product that both protects them and doesn’t do harm to the environment? By demonstrating authority through association utilizing an Entrant Philanthropic Model. 5.3.1 Non Profit Partnerships Reef has partnered with Coral Reef Alliance, the worlds largest coral conservation nonprofit and will be posted on their website next to billion dollar businesses such as SKYE, Hawaiian Airlines, and Amazon. We will have the authority to use their logo and receive a short term social media push from them that will include twitter (8k followers), Facebook (170k followers), Instagram, and a video from their Executive Director thanking us for all our work towards reef conservation. We will also have the chance to visit one of their conservation sites and participate in the work that we can then capture for social media engagement. With the largest Reef Conservation non profit as our witness, customers will recognize REEF as the sunscreen authority for reef conservation and overnight we will be established as a leading brand for reef conservation. This will tilt the scale of authority in our direction and away from other “reef safe” companies. 5.3.2 Research Programs Two early friction points for any startup is Familiarity & Scalability. By partnering with marine research programs to sell them product at near cost rates, we will effectively combat both of these problems. Most people tend to prefer the familiar over the unfamiliar. This is true off food, people, etc. By placing our product in the hands of thousands of college professors, students, and marine biologists at research institutes they will have instantly become familiar with our brand. Since this demographic has the unique position of wearing sunscreen provided for free or at a substantial discount, this will place Reef on their boats, in their bags, and on their skin. They will know what it looks like, feels like, and even smells like. By being familiar with the sunscreen, and seeing it priced similarly as other reef safe sunscreens on store shelves (maintaining subconscious valuations), they will be more likely to use it and recommend it to friends. Not to mention we will offer it to all marine research students and affiliates at a highly discounted rate direct from our website. But how does this effect scalability? By engaging these programs and offering our product at an extremely competitive rate (.25-50 cents over cost), we should increase our volume of sales substantially. Though the profits from these sales will be minimal, they will reduce our over all price per unit by ballooning volume. In doing so we will effectively collect more profits from the bottles sold to retailers at full wholesale than we would have without the research programs. This will allow us to scale much sooner than seeking out retailers alone, providing higher earlier profits, great brand awareness, and building up our brand authority on reef conservation through association with marine professionals. 5.4 Domain Dominance If a company is not seen on the first page of an internet search, that company has only a 6% chance of being seen and a less than 1% chance of being visited. With a market flooded with sun protection products how do we put Reef on the first page? Without going too in depth on the complex characteristics that determine position in search engine results (outside of advertising), part of our strategy is holding 15-20 domains associated with sunscreen and reef safe product. 1! 4

STRATEGY IMPLEMENTATION CONT. Below is the list of current domains owned by Reef: (Available after investments are collected) Below is the list of domains we will pursue by the end of year one: (Available after investments are collected) These domains will be used to either reroute visitors to our website or will have comparison articles between sunscreens where Reef comes out on top every time. If a consumer searches “What is the safest sunscreen for coral reefs?” These domains and the optimized data therein, coupled with Google ads and our social media campaigns, will place Reef in the top half of search results on the top 3 most used search engines. 5.5 Value Propositions & Initial Copy ideas Our business’s value proposition is arguably the most important element of our overall marketing messaging. A value proposition tells consumers why they should do business with us rather than our competitors, and makes the benefits of our products or services clear from the get go. I recommend searching value propositions by successful companies, then reading over those below and picking them apart to make them better. All ideas and copy is appreciated. Protect What You Love : Juxtapose putting sunscreen on Children/grandparents with reefs and ocean life. On today, Gone tomorrow (On & Gone): promote 100% biodegradable product with time lapse of our product decomposition Buy For Tomorrow: Promote how every little lifestyle change helps. 1% of profits to conservation and research, 100% biodegradable products. Make them the hero in their choice of purchase. Safe for Natures Most extreme Environments (or) How safe? Extremely Safe: Examples of Reef with snow boarders, skydivers, extreme sports etc (Think red bull style advertising but for sunscreen). Be The Barrier: This plays on a couple levels as our product is a UV barrier fro the skin, your purchase protects (or acts like a barrier) to the environment, and barrier is a clear reference to barrier reefs. Barrier could also be great for word play one liners, “The barrier of good news”, etc. 5.6 Marketing Strategy Much of the marketing strategy has been broadly covered in the previous sections of this document. As a recap, we will be focused on promoting our brand as the authority on reef conservation by shamelessly advertising our strategic alliances with nonprofits and Marine Research programs. Much of our social media and gorilla marketing will be influenced by this. A major goal of Reefs marketing will be to show that we are the worlds most eco-safe sunscreen brand by showing time lapse videos of our bottles decomposition. A “you could go with this, or you can go with that” strategy will work well hear, showing all other major brands still in their whole state far after Reef as decomposed. Reef also wants to show that Eco conscious doesn’t mean living in a boring bubble life. It means making multiple small decisions to make the world a better place as your pursue your adventures. Reef protects consumers in every environment, even the most extreme ones. Thats why our team, which includes many participators in extreme sports, will be repping Reef as the red bull of sunscreen as best as possible. This is a great way to generate Insta & FB follower-ship and grab the attention of our young energetic population. Reef should exude 1! 5

STRATEGY IMPLEMENTATION CONT. adventure, excitement, and the thrill of taking risk (the antithesis to Sun Bum) balanced against its carefree use as it wont harm any part of the ecosystem. Think Cliff diving, scuba diving, sky diving, snow boarding, free climbers, etc. 5.7 Sales Strategy Initially Reef will rely on member sales and internet sales (Amazon, Reef website, Web retailers). We also will have access to a few Big Box stores trial run programs. It will be up to the members how fast we grow until income generated is enough to hire sales staff. Keeping overhead low is the intent of the first year, but I am happy to grow as fast as needed. Sales will take on a commission based approach to incentivize sales by share holders. It is structured with an initial commission coupled with a reoccurring commission to keep sellers engaged with clients over the long term. 5.7.1 Sales Commission When a sale is made to a retailer, the first order comes with a 20% commission from profits to the seller. Example: Retailer buys 500 bottles of Reef for wholesale with our profit per bottle being $2.5. Total Profit is $1250 to the company. 20% of $1250 = $250. $250 goes to the seller. If the seller reorders or is on an automatic reorder schedule, the seller will get 5% of every order for the life of the sales relationship. Example: Retailer wants 500 bottles every 3 months. Assuming a $2.5 per unit profit this equals $1250 profit to the company. After the initial 20% commission of $250, the sales person would earn 5% of $1250 = $62.5 per renewed order. This will allow the seller to continue searching out new business for larger commissions while still generating a more passive income from previous sales. Sales bonuses will be established by the board with either monetary bonuses or stock options being issued. This commission does not take the place of an owners profit stake at the end of the year. Thus someone who both owns and sells Reef will see the greatest profits. Example (assuming a $2.5 profit and 5% stake): In 1 year a Seller gains 10 x new clients at 500 bottles every 3 months. This = $2500 in initial commissions ($250 x 10 retailers) , $1875 in secondary commissions ($62.5 x 10 retailers x 3 quarters), and $2280 from end of year profits he has generated (Gross profits $50,000-Initial commissions $2500-secondary commission $1875 = Net profit $45,625 x 5% stake). This equals a total of $6655 in income derived from his personal sales. This number does not include the 5% of profits an owner is entitled to from company End of Year net profits. Example: If five members generated the same sales volume that would equate to a Net of $228,125 to the company. The 5% member would be entitled to $11,406 in addition to his commissions (if no reinvestment by the company occurred). !16

STRATEGY IMPLEMENTATION CONT. 5.8 Milestones These events mark important indicators of our companies growth, influence, and profitability. As we pass each goal we will gain valuable insight into the future success of our product. I believe they are reasonable and should be met in year one. 5.8.1 Sales and Followers 1 Meter: Reef in First Retail Store, First Amazon sale,1k followers FB/Insta, 100 units sold. 10 Meter: 10 Retailers, 100 Amazon sales, 10k followers FB/Insta, 1000 units sold 25 Meter: 25 Retailers, 500 Amazon Sales, 25k followers FB/Insta, 2500 units sold 50 meter: 50 Retailers, 1000 Amazon sales, 50k Followers FB/Insta, 5000 units sold 75 meter : 75 Retailers, 2000 Amazon sales , 75k Followers FB/Insta, 10,0000 units sold Touch Down: 100 Retailers, 5000 Amazon sales , 100k Followers FB/Insta, 15,000 units sold 5.8.2 Charity 10k To non profit conservation programs and Marine research Institutions. Reef participation in 5 beach/ocean clean up events. 5.8.3 Alliances/Partnerships Awarded “Champion of the Reef” by Coral Reef Alliance. 20 Marine Research Programs Sunscreen Sponsor for Major surfing Event !17

6. INITIAL MANAGEMENT Board of Directors 6.1 Organizational Structure CEO General Manager Media Manager Media Brick Sales Click Sales Assistant Environment Engagement 6.2 Management Summary The CEO will be taking on much of the early responsibility to get the company to market. Though growth will occur through CEO engagement, Active Partners located throughout the US will speed growth. Once we are at a sustainable reoccurring sales rate of 3000 bottles monthly, we will begin instituting salaries for sales associates and positions as shown in the chart above. 6.3 Management Job Descriptions 1. CEO: Responsible for getting product to market, negotiations with manufacturers/non-profits/logistics, Social media start up, product development, maintaining corporate documents in year 1. 2. Board: Responsible for voting on resolutions. Absent members votes will counted as abstained. 3. Media Manager: Responsible for growing and monitoring our social media presence as well as monitoring our website development/needs for updates. The social Media Assistant will work under the Media Manager. 4. General Manager: Sales & Environmental Engagement oversight. Will supervise Brick and Click associates schedules and lead the implementation of sales strategies agreed upon by the CEO, Board, and MM. 1! 8

6.0 MANAGEMENT 5. Brick Sales associate: Arranges and fulfills shipments to brick and mortar locations. Supports our organic sales team by providing pricing, shipping updates, and packaging recommendations. Ensures Reef has a strong in store presence through signage and other media. 6. Click Sales associate: Arranges and fulfills shipments ordered directly from our website. Schedules, monitors inventory levels, and tracks our Amazon housed merchandise. Recruits and assists online retailers to sell our product to their audiences. 7. Environmental Engagement Officer: Researches opportunities for Reef to participate in Beach, Ocean, Reef clean-up/conservation and presents them to the CEO/Board. Manages and builds our Marine research program. Test current products and finds new ways to improve our impact on the environment. !19