nationwide expansions.

Phase I

Landscaping industry | Northeast U.S. | in progress

SHARKMARX successfully proved its concept by focusing on concrete pavers and walls and natural stone products in the Northeast U.S., a $309M market segment. The launch was designed to validate the model and build brand trust for a new technology prior to expanding into the $1.9B national market.

These sales came from SHARKMARX’ “Get YOUR Price” reverse auctions, where contractors post their material needs and maximum price to open bidding. SHARKMARX automatically solicits real-time, competitively priced bids from suppliers. This bidding process drives prices down for buyers, while suppliers are able to expand their sales channel and reduce late receivables with SHARKMARX’ “patent pending” electronic payment process.

SHARKMARX has two primary revenue streams, both derived from the seller:

• Annual subscriptions of $99

• A transaction fee of 3%

SHARKMARX will begin transitioning into its Phase II implementation during late Q3 and Q4 of 2013. This calculated, phased approach has helped SHARKMARX build brand trust among its initial target customer base, making it easier to convert and grow these customers into SHARKMARX Phase II rollout.

Phase II

Landscaping industry | U.S. | growth stage

As SHARKMARX builds brand trust with its landscape contractors, mason contractors, and suppliers, it can expand its business organically. As its customers realize savings on their hardscape goods, they will want to realize similar savings on other products they purchase. SHARKMARX can expand vertically with other products such as mulch, equipment, etc. SHARKMARX has already experienced this expected progression, successfully completing auctions for Ice Melt, Heating Oil and requests for lumber and fencing.

These additional materials in the landscape/masonry vertical market present significant opportunities to SHARKMARX. The table below illustrates the magnitude of this growth potential.

Phase II – Vertical Market Opportunities

Market > Market Size

Concrete pavers and walls* > $1.9 Billion

Commercial mowing equipment > $5 Billion

Mulch and Topsoil > $1.6 Billion

Commercial Utility Trailers > $600 Million

Waterscapes > $150 Million

Heating Oil** > $11 Billion

Raw Materials > $13 Billion

Ice Melt ** > $2 Billion

Phase III

Home Improvement industry | U.S. | growth stage

Similar to Phase II strategy, Phase III will capitalize on brand trust and proven savings performance established during its launch phase and expand into horizontal markets under the home improvement category. The targeted buyer in other home improvement markets has a similar profile to that of the current SHARKMARX landscape and masonry contractor. Similarly, the problems facing a home improvement contractor are analogous to those facing the landscape/masonry contractor. (See "Buyer Profile" and "Problems > Solutions" on following pages.)

The table below illustrates the market opportunities to expand into other horizontal markets in home improvement.

Phase III – Horizontal Market Opportunities

Market > Market Size

Roofing shingles > $3.3 Billion

Decking > $3.1 Billion

Siding > $6.3 Billion

Windows > $5.7 Billion

Doors > $6.3 Billion