Post Hole Plus Conceptual Overview

I. The Situation You are beginning your morning with the task of installing election signs along your block. Equipped with a shovel, you have spent the day installing signs and your back has given out. Using the post hole plus, you effortlessly started digging a hole in the ground and installed a new sign in moments. The next day you quickly finish out installing the rest of the signs without a whole day of work. II. The Problem The modern design of a shovel is without a doubt physically demanding. III. The Solution Post Hole plus is designed to dig a hole into the ground with little effort. IV. The Strategy Currently Post Hole Plus is a staff run project and its inventor, Steve Webb, owns the rights. We are seeking a partner with sufficient resources or a potential licensing agreement with an already established company. The marketing ability for post-hole is high since there are no other patents with a similar objective and design while post-holes mechanical design is also simple. The market for post-hole includes people who generally work in the outdoors and also in certain African nations to prevent Cholera. When the prototype for post-hole is complete we will start looking for investors. The Bill Gates Foundation has a good potential for investment because of their involvement with African relief services. Other possibilities of direct sales include Kickstarter, Snap-on, and Black and Decker. Over the internet, Kickstarter is an online threshold pledge system for funding independent creative projects. Snap-on is a U.S designer, manufacturer and marketer of tools. Black and Decker is a designer and importer of power tools and home improvement products.

V. The Competition

Currently, there are no competitors with an independently designed tool for post hole digging since there are no other patents in that regard. VI. The Team Seasoned inventor Steve Webb led the development of the product and working underneath him is his team of interns. These interns are coop students supplied by Drexel University in Philadelphia. The interns are broken up into two groups as follows:

Engineering: Christian Stecher is the current intern in charge of CAD renderings and prototype production. He is a hard worker with a keen attention to detail. Mr. Stecher also handles CAD and prototyping for several of Steve Webbs other inventions. He is a sophomore mechanical engineering major at Drexel University. Gregory Hoge is another currently active intern. Greg is in charge of Magna-Clamps electronic schematics and is very active in the prototyping process. Greg also interned for the previous semester. He has years of experience in mechanical engineering fields as well as an electronics background. Greg is a junior at Drexel University. An intern from a previous term, Yuan Jie Wen is a junior mechanical engineering major at Drexel University. He is responsible for the initial drawings and design of Magna-Clamp. While currently off of his internship and back in school, Mr. Wen is still a very active participant in the design and creation of the Magna-Clamp prototype. John Zhang is our fourth engineering intern shared many of the same responsibilities as Yuan Jie Wen. The two of them worked very closely with Steve Webb when MagnaClamp was still in the brainstorming process. Similar to Mr. Wen, Mr. Zhang is also still an active member of the team despite his time in classes. Business: Erik Wallace is the current intern responsible for Magna-Clamps business dealings. This ranges from administrative tasks to financial management. He is also active in several of Mr. Webbs other projects and is in charge of theirs as well as Magna-Clamps online presence. Mr. Wallace is a sophomore business administration major at Drexel University. VII. The Financials

Being an individual product instead of an incorporated entity, Magna-Clamp has a different set of financial obligations. However, these have still been addressed and are as follows: Administrative and Legal: Magna-Clamp currently has a provisional patent. This provides exactly one year from the filing date (April 2012) to file a Utility Patent Application. This patent application costs $2,900.00 and is currently awaiting prototype production and possible investment. Prototype: Magna-Clamps prototype body is made using aluminum blocks and an extrusion method. The aluminum is sourced from McMaster-Carr, a private, industrial supply company. Two sizes of aluminum are being purchased for the first prototype; the 1.5x4x12 block costs $52.59 and the 3x4x12 block costs $93.65. The electronics housed in the body (such as: power jack, resistors, toggle switch and led) have a total of $5.07 per clamp for the initial prototype run. For the initial prototype, the magnets are sourced from APW Company and cost $56.01 each The bottom line for the prototype is $213.37 for initial prototype production. This figure only reflects part costs and does not include machinery time. Tooling Cost: The quoted tooling cost for Magna-Clamp is $25,000. Production Cost: The quoted production cost for Magna-Clamp is $28.00 per clamp at a quantity of 100 clamps. Once the prototype phase is complete, we will send a final set of production specifications to the possible suppliers in a preliminary bidding process. This will allow us to seek out the most efficient (both cost and time based) vendors for production. Current bids have shown to be in the range of $22.00 per clamp at a quantity of 1000 clamps. This bid reflects the 4 jaw model. A China based manufacturing company has also been sourced for a production level quantity of magnets. Yueqing Zhengyong Electrical Co. Ltd has quoted us a price of $1,362.00 for a shipment of 100 magnets. (This price includes FOB shipping to Philadelphia, PA) These 100 magnets will be used in the initial production run. Furthermore this company is also able to scale our order up to 10,000 units a shipment with a maximum turnaround time of 15 days. Sales: The retail price is expected to be between $75.00 and $89.00 depending on the results of

our direct market research. This is based on the price of competition clamps without electromagnets and first round research inquiring desirability from those in related fields.