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Agenda 07/09/2019 Item #16G 1 (Assumption Agreement w/Tellus Florida, LLC)07/09/2019 EXECUTIVE SUMMARY Recommendation to approve the attached Assumption Agreement between Tellus Florida, LLC, Galexa, Inc., and the Collier County Board of Commissioners in its Capacity as the Collier County Airport Authority for leased space at the Immokalee Regional Airport. OBJECTIVE: To transfer the Collier County Airport Authority Standard Form Lease with Tellus Florida, LLC to Galexa, Inc. CONSIDERATIONS: On July 7, 2015, Agenda Item 16G2, the Collier County Board of County Commissioners (Board), in its capacity as the Collier County Airport Authority (Authority) approved a Collier County Airport Authority Standard Form Lease with Tellus Florida, LLC (Tellus) for a one -acre parcel of land at the Immokalee Regional Airport for the construction, manufacturing, and storage of prefabricated concrete residential and commercial building materials. On June 28, 2016, Agenda Item 16G2, the Board approved the First Amendment to the Lease Agreement to expand the use of the leased space to allow the placement of trailers to be used for office space and containers for storage. On May 30, 2019 the Airport Authority received notice from Galexa, Inc. (Galexa) expressing their desire to transfer the Lease from Tellus to Galexa, as Tellus has been recently acquired by Galexa. Paragraph 15 of the Lease Agreement with Tellus allows assignment with express written permission of the Authority. Tellus has indicated that it has no issues or concerns with this transfer. Staff has reviewed the Business Plan of Galexa and recommends approval of this transfer. FISCAL IMPACT: Rent and all associated lease revenue will continue to be deposited in Airport Operating Fund (495), Immokalee Regional Airport Cost Center (192330). GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with the Executive Summary. LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board action. - JAB RECOMMENDATION: To approve and authorize the Chairman to sign the attached Assumption Agreement with Galexa, Inc. to transfer the Collier County Standard Form Lease agreement with Tellus Florida, LLC to Galexa, Inc. Prepared by: Justin Lobb, Airports Manager, Airport Authority ATTACHMENT(S) 1. Assumption Agreement Tellus-Galexa_CAO Stamp (PDF) 2. [Linked] Galexa - Documentation & Business Plan 5.30.19 (PDF) 16.G.1 Packet Pg. 2009 07/09/2019 COLLIER COUNTY Board of County Commissioners Item Number: 16.G.1 Doc ID: 9213 Item Summary: Recommendation to approve the attached Assumption Agreement between Tellus Florida, LLC, Galexa, Inc., and the Collier County Board of Commissioners in its Capacity as the Collier County Airport Authority for leased space at the Immokalee Regional Airport. Meeting Date: 07/09/2019 Prepared by: Title: Operations Coordinator – Airport Authority Name: Debra Brueggeman 06/04/2019 9:32 AM Submitted by: Title: Division Director - Operations Support – Growth Management Department Name: Gene Shue 06/04/2019 9:32 AM Approved By: Review: Airport Authority Justin Lobb Additional Reviewer Completed 06/04/2019 10:02 AM Growth Management Department Gene Shue Additional Reviewer Completed 06/04/2019 10:32 AM Growth Management Department Christine Arnold Level 1 Reviewer Completed 06/04/2019 10:32 AM Growth Management Operations Support Christopher Johnson Additional Reviewer Completed 06/04/2019 5:03 PM Growth Management Department James C French Deputy Department Head Review Completed 06/06/2019 11:58 AM Growth Management Department Thaddeus Cohen Department Head Review Completed 06/06/2019 1:11 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 06/10/2019 10:02 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/10/2019 2:17 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/10/2019 3:43 PM Budget and Management Office Ed Finn Additional Reviewer Completed 06/14/2019 8:10 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/25/2019 1:48 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/09/2019 9:00 AM 16.G.1 Packet Pg. 2010 16.G.1.aPacket Pg. 2011Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.a Packet Pg. 2012 Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.a Packet Pg. 2013 Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2014Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2015Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2016Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2017Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2018Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2019Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2020Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2021Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2022Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2023Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2024Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2025Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2026Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2027Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2028Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2029Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2030Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2031Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2032Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2033Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2034Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2035Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2036Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2037Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2038Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2039Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2040Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2041Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2042Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2043Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2044Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) 16.G.1.aPacket Pg. 2045Attachment: Assumption Agreement Tellus-Galexa_CAO Stamp (9213 : Tellus-Galexa Assumption Agreement) TELLUS​FLORIDA 14538 Indigo Lakes Circle Naples, Florida 34119 Justin Lobb ​| Airports Manager Collier County Airport Authority 2005 Mainsail Drive | Naples, FL 34114 tel (239) 642-7878 | fax (239) 394-3515 Re: Transfer of Immokalee property lease from Tellus Florida, LLC to Galexa, Inc Justin, This letter is to confirm my approval for the Collier County Airport Authority to transfer Tellus Florida’s Immokalee property lease to Galexa, Inc. Please feel free to contact me with any questions or if you need additional information. Best regards, Paul Inglese, Manager Tellus Florida, LLC Business Plan David Tingley Chief Financial Officer 453 Bayfront Place Naples, FL 34102 Telephone: (239) 216-1250 E-Mail: dtingley@galexausa.com 2 | Page I. Table of Contents I. Table of Contents .................................................................................................................................... 2  II. Executive Summary ................................................................................................................................ 3  III. General Company Description ............................................................................................................. 5  IV. Products and Services ........................................................................................................................... 10  V. Marketing Plan/Industry Information ............................................................................................... 12  VI. Management and Organization ........................................................................................................... 27  VII. Startup Expenses and Capitalization .................................................................................................. 32 VIII. Appendix 3 | Page II. Executive Summary Galexa Inc. manufactures advanced, pre-engineered building systems called SuperComposite, and provides turn key development, construction and marketing services to deliver our products to residential and commercial real estate consumers and project developers. We began in Naples, Florida in 2018 with focus on Collier and Lee County and will progressively grow throughout the United States and ultimately will penetrate the Caribbean, South & Central America and other foreign markets within a five-year period. Our primary marketing focus will be to target a demographic base, ranging from millennials to senior citizens who seek eco-friendly, efficient and affordable living solutions. Additionally, we will provide dwellings to charity groups such as U.S. Military Veterans and those involved in disaster relief. Finally, Galexa will service the commercial construction industry through providing its SuperComposite system as a building component product to be used in a variety of different project applications. The Company's strategy will be based on utilizing our efficient technology driven building systems to overcome the current shortage of tradesman available at construction job sites. We will accomplish this in combination with a continual improvement of setting manufacturing and construction objectives, measuring our results and then providing feedback to facilitate further growth and enhancement in the organization. We work only with experienced and highly reputable General Contractors and manufacturing professionals to create our line of Direct & Retail homes as well as our commercial wall unit products. Our current Direct homes include two models which are assembled in a manufacturing facility, ordered online and then shipped directly to the customer for placement on a parcel of land. Our Retail line of homes include four models which are built on or delivered to the customers location and involve full installation, hookups, permitting and other services to provide a turn key solution. Our commercial wall units are built to architectural and engineering specifications of our commercial clients and their development team. All our products include a cooperative effort between the client, our internal real estate team, Developers, General Contractor and Galexa’s manufacturing representative and management team. Together we include the full a full line of services that our clients expect from beginning to end. The direct problem Galexa will address is the demand for workforce housing. The U.S. has a shortage of 7.4 million affordable rental homes available to low income renter households, resulting in 35 affordable and available units for every 100 low income renter households. This leaves an absolute shortage of 3.9 million affordable rental homes for low income renter households and gives higher income households a broader range of affordable housing options. 71% of low-income renter households are severely cost-burdened, spending more than half of their income on housing expense. The Company's management is highly experienced and qualified: Chuck Ardezzone, David Tingley and Paul Inglese will lead the management team and together have accumulated over 75 years’ experience in sales, marketing, media, finance, real-estate and the construction industry. Under the direction of our Chief Design Officer Paul Inglese, our team will work with Gates Construction to develop bidding, scheduling and materials solutions for some of the most innovative affordable home construction projects being built today. The Company will use versatile and completely adaptable methods for a variety of building configurations. Galexa will utilize a factory setting which we will initially be on a sub-let basis, to realize substantial savings in labor and material costs. Through this approach and via the utilization of our licensed pre-engineered wall systems, we will incorporate technologically advanced methods to create significant cost savings and speed in construction. Having these advantages has already allowed Galexa to begin developing marketing alliances 4 | Page with affordable home groups and programs in the pursuit of sales which focus on securing city, county, state, and federal government contracts. Galexa’s aggressive internet and social media campaign as well as local networking coupled with high demand will allow our target markets to be reached rapidly. The company plans to utilize its in house media expert Chuck Ardezzone to film a reality TV show, emphasizing Galexa’s efforts to meet the demand for affordable housing shortage. The high-quality show will generate additional revenues through sales to local and national media networks while also providing Galexa with low cost TV commercial content, professional online video advertisement and other highly effective social media tools. We will complete construction of a one thousand square foot (1,000 sq. ft.) model home which will also be used as a sales center and will be located at the corner of Goodlette Frank Road and Tamiami Trail, in front of the Bayfront Development. This location is near downtown Naples and provides extremely high visibility and traffic count, allowing Galexa to gain immediate market presence within the community. We ultimately plan to build a smaller three hundred twenty (320 sq. ft.) portable demonstration model, which will be transported via truck to trade shows and other events. Through the combination of our marketing efforts we will help our sales staff capture interest and close a significant number of transactions. Financially, we expect to pass the “break-even point” within the first several months of our construction and manufacturing ramp up. The Company will incur an initial requirement for cash investment to promote sales, engage construction projects, provide payroll for its staff and complete a variety of other initiatives. As a result, Galexa will pursue equity capital of up to one million dollars ($1,000.000) from investors to meet these requirements and provide fast access to establishing a solid and consistent level of sales and distribution. Eventually, the company will use its initial investment capital as well as its profits to bring certain aspects of the company’s production “in-house”. This will provide greater savings and eventually create larger valuation consideration to the company and its stockholders. The Company's cash account is expected to remain healthy and our projections indicate we will achieve approximately thirty-eight million dollars ($38,000,000) in gross sales revenue in year one and an approximate net revenue of six million one hundred six thousand dollars ($6,106,000) by end of year three. 5 | Page III. General Company Description Galexa specializes in procucing innovative SuperComposite pre-engineered building systems, including commercial wall shell units and turn key residential workforce homes which are affordable, hurricane safe, sustainable, innovative and currently in high demand. Our products are thoughtfully constructed and assembled by our team of architects, designers, engineers, contractors, and steel fabricators and our project developers work in combination with us to form a uniquely powerful team of creative experts. We provide low cost solutions which help individuals and families with an alternative to renting pricey apartments or buying an expensive home. Additionaly, Galexa solves a key problem within the commercial construction industry due to labor shortages and rising material costs. This has contributed to the widespread adoption of both pre-engineered and other sustainable construction designs and methods which meet the larger objective of keeping costs low and the quality high while meeting the client’s specific needs. Through purchases of Galexa’s pre-engineered wall units, contracors and developers are able to lower their costs significantly by reducing the number of tradesman required at the job site, minimizing the number of permits they have to pull and in some cases, providing the ability to begin building wall shells off site during the time when site preperation work is being completed on the job site. Mission Statement: Galexa’s mission is to become America’s most innovative, forward thinking, and affordable home builder and supplier of commercial pre-engineered wall shell units. We will always be ambitious, honest, ethical, and deal fairly with our clients and partners. We will practice conservative financial principles and execute them daily, while inspiring eco-friendly, attractive and economically feasible living solutions. Company Goals and Objectives: At Galexa, our goal begins with creating a healthy, successful company which is a leader in both sales, quality construction, and development of affordable homes and commercial wall shell units. Additionally, we strive to achieve an impeccable level of customer service designed to help earn a loyal customer following, all with a focus on providing respectable returns to our investment partners. 6 | Page Our primary objectives: 1. Secure investment capital to expand company operations. 2. Intense increase in brand awareness for target market during Q1 through Q4 of 2019 3. Enhance our website, Facebook, Instagram, Twitter, and Pinterest page to gain social media presence. 4. Create overall customer engagement on social media platforms. 5. Execute tactical plans to obtain and secure potential customers. 6. Create commercials for TV and internet advertisements. 7. Develop the local, state, national and international markets by expanding our licensing network. 8. Achieve thirty-eight million ($38,000,000) gross sales by end of first physical year and six million ($6,000,000) million plus in Net profit by 2022. 9. Expand markets into the greater United States and then into Central & South America and the Caribbean. 10. Create an exit strategy to sell the Company, license our process regionally and sell the brand or take it public within a three to five-year period. Our executives and management team will hold meetings weekly with specific measurements relative to total gross sales, net profit, and ongoing customer satisfaction levels to monitor progress. These weekly results will also be reviewed quarterly by the company’s board of directors and advisors to ensure we are on target and annually with investors to be certain we are on course to achieve the goals and objectives listed. Business Philosophy: Galexa’s philosophy is to always provide exceptional value and quality to our customers through our passionate drive and determination coupled with a positive family spirited approach. We consistently seek growth opportunities in which we can learn and build our organization through honest relationships and open communications with both internal and external customers. Target Market: Galexa’s primary market penetration will begin with a pursuit to address the latest “shortage” of affordable homes in several areas of Florida including Lee and Collier County. This will appeal to those who seek workforce housing, investment property, retirees and military veterans on a fixed budget as well as individuals interested in the sustainable eco-friendly aspect of our homes. The Company will open an inexpensive housing market since incredibly high housing prices are sending them across the country looking for alternatives. 7 | Page The second market segment Galexa is aggressively pursuing is the commercial builder and developer market for sale of our pre-engineered wall shell systems built with SuperComposite technology. Using our efficiently designed products, construction costs of building homes and wall shells can be reduced by an estimated 15% over other methods and completion of these projects can be accomplished in about half the time of normal construction. The implications for mass producing units in this cost-effective manner are attracting developers and architects in the single and multi-family sector in droves. The Industry: According to HBI Home Buying Institute, tight shortages on labor and strong demand for product have boosted home prices in housing markets across the country, while presenting challenges for buyers. Mortgage rates also rose steadily during the third quarter of 2018, and then leveled off during the early part of the fourth quarter. Nevertheless, a recent uptick in building permits nationwide has been identified, which is anticipated to lead to a much-needed increase in new-home construction in 2019. In a June 2018 report, the National Association of Home Builders shows an ongoing upward trend in housing starts and favorable interest rates for the foreseeable future, helping to ensure growth for Galexa. Housing and Interest Rate Forecast as of, 11/08/2018 2018 2019 2020 Housing Activity (000) Total Housing Starts 1,263 1,283 1,296 Single Family 884 917 933 Multifamily 380 366 364 New Single-Family Sales 638 661 672 Existing Single-Family Home Sales 4,799 4,747 4,739 Interest Rates Federal Funds Rate 1.83% 2.81% 3.20% 90-day T Bill Rate 1.98% 2.85% 3.02% Treasury Yields: One Year Maturity 2.34% 3.17% 3.10% Ten Year Maturity 2.95% 3.40% 3.36% Freddie Mac Commitment Rates: Fixed Rate Mortgages 4.60% 5.21% 5.33% ARMs 3.84% 4.68% 4.77% Prime Rate 4.71% 5.58% 6.20% Data are averages of seasonally adjusted quarterly data and may not match annual published elsewhere. 8 | Page Company Strengths and Core Competencies: Galexa has assembled a group of team members with diverse experiences whom will be vital in the Company’s long-term success. Coupled with our utilization of high-tech pre-engineered wall systems we have already separated ourselves in this unique and rapidly expanding segment of the construction industry through technology and speed. We build a better, faster and stronger product then any of our local competitors. Our internal personnel consist of a highly successful individuals with extensive backgrounds in finance, real estate, property management, military, construction, television & film production, as well as significant sales and marketing success within a variety of business ventures. Together these skills provide for an extremely solid foundation as Galexa expands and grows. Furthermore, our partnerships with Developers, General Contractors, Architects, Designers and others, have been put in place with stringent guidelines, requiring each individual or group to have outstanding experience and a track record of success in their given profession. Specifically, our construction team is centered around utilization of our first primary General Contractor and Senior advisor Todd Gates. Todd’s organization provides background including the construction of hundreds of residential homes and commercial projects. Our Chief Financial Officer, David Tingley has provided construction financing for thousands of homeowners in his previous role as a banker and he also managed over sixty residential and commercial rental units, providing him a unique understanding of Galexa’s primary target markets. From a marketing and media position, Galexa’s CEO, Chuck Ardezzone is a seasoned professional and owns ITZ Media Group, which produces and distributes reality television programs and documentary films. His experience will be instrumental to the Company’s advertising campaigns which will include television and internet commercials along with a reality tv show based on the full process of designing, building, and selling the affordable homes and technologically advanced commercial shell wall systems. Galexa was formed in 2018 as an S Corporation to allow for capital investment and for growth incentives from a tax consequence prospective. 9 | Page Example Renderings and Photos of Galexa Residential and Commercial Projects: 10 | Page IV. Products and Services Galexa will utilize our SuperComposite systems as the creative advantatge to construct residential homes which are eco-friendly, hurricane proof, non-combustable and trendy. Although we can provide endless customizable options, Galexa will focus its efforts to offer four initial model homes and two commen wall shell system for use in commercial projects. Both of these can be mass produced with economy of scale efficiencies. The four initial models have been created by the professional architects, designers, engineers, contractors, and steel fabricators that are experts in their field. These models have be designed to provide the greatest functionality and aesthetically pleasing appeal while also targeting the highest profitability and overall demand based upon our key demographic customer base. Examples of these homes can be seen in the Galexa Power Point Presentation (see attached). The initial models will be constructed at our contractor’s location and then sold directly to end users via the internet or by Galexa’s sales team as a “Direct Model”. Internet customers will simply receive delivery of their unit and all final positioning, hook ups and other incidentals will be the client’s responsibility. If the house is ordered from the Galexa sales team as a “Retail Model”, then the home will be shipped to the installation site where the Galexa team of professionals will complete the final construction, installation and hook up of the home. In addition to the initial model homes targeted for affordale living, the company will ultimately build higher end homes and supply product for commercial units. These two aspects of Galexa’s business will ultimately grow under a separate divisios as we progress. Taking on these more unique build outs will bring additional knowledge to our team and revenue to the company’s bottom line will be enhanced. As a result of the affordable nature and eco-friendly benefits of our primary home models, government agencies, savvy developers, and real estate investors have begun to include Galexa as a key player to be considered in their projects. Galexa has already been included in numerous discussions with these groups and are working diligently to secure the projects. These range from a one hundred eight (108) unit residential community, to work camp housing for oil drilling groups in North Dakota, and even for low cost rentals slated for installation in the Bahamas. These projects are close to fruition and Galexa has been the lead and in some cases the only supplier of homes being considered for these projects. Galexa has hit the ground running with these prospective orders which range in combined dollar value and total over two hundred fifty million ($250,000,000) at the time this document was created. These prospects are now being converted into sales through letters of intent. They will go to full sales contracts upon execution of the company’s sales agreement. Preliminary Marketing collateral has been developed to help represent the attributes of Galexa including original brochures, Power Point Presentations and photographed examples of various home models (see attached). This material will be modified and professionally branded to follow suit with Company’s digital marketing and overall social media campaigns. Galexa’s corporate costs as well as its pricing for its commercial shells, Direct and Retail housing prices will vary depending upon the model of home chosen, construction technology used, transportation and other variables. However, to provide benchmarks for purposes of this business plan and profit projections, the Company anticipates the following: 11 | Page Production Costs Range in pricing for our construction costs are from one hundred six dollars ($106) per square foot, up to one hundred fifteen dollars ($115) per square foot for the Direct and Retail models respectfully and thirty five dollars ($35) per square foot for commercial wall shell sytsems. Retail and Direct Pricing The price for Galexa’s Direct product to consumers, which are the homes sold from our website and other internet sources such as Amazon, Alibaba and Ebay, will cost approximately one hundred and eight dollars ($150) per square foot. Our Retail product will have a sale of approximately one hundred eight dollars ($180) per square foot, depending upon finishes. And finally our commercial shell wall systems will sell on average for fourty three dollars ($43.00) per squre foot. Galexa’s approach to provide both Direct and Retail homes as well as commercial shell wall systems will set us apart in the marketplace. In addition, proprietary features and construction methods which may be developed by Galexa over time, have the potential to be patented and/or branded by the Company, ultimately providing potential for additional profit-making opportunities. Furthermore, the stability of the Galexa reputation and quality will, over time, have the potential to grow and provide the Company additional value through the its brand name recognition. Financing homes will also provide an important aspect to the Company’s ability to grow. For this reason, Galexa has already established relationships with multiple banks, credit unions and private lenders who will provide financing for clients and who wish to purchase our homes. Furthermore, the company has hedge fund lenders who will supply financing during constrution if a client should only have end loan financing approved. Because each of Galexa’s homes will be “HUD Approved” (Department of Housing and Urban Development), banks will also have an easier time lending to clients who wish to finance a portion of their home when they purchase. 12 | Page V. Marketing Plan/Industry Information The U.S. housing recovery lost momentum in 2015 as homeownership rates continued to fall, single-family construction remained near historic lows and existing home sales cooled. In contrast, the rental market remained a bright spot fueled by robust growth in renter households. With rents rising and incomes well below pre-recession levels the number of housing cost-burdened renters set another record far surpassing public efforts to provide affordable housing. And despite the rebound in much of the nation, several minority and low-income neighborhoods remain severely distressed. The national homeownership levels rate has fallen lower than 1993 levels. Despite the growth in the number of owners, the National Homeownership Rate Fell Again Apartment Property Prices Have Appreciated Much More Rapidly than Single-Family Home and Commercial Real Estate Prices 13 | Page Risks and Challenges The primary challenge Galexa will face is brand positioning, market awareness and cost savings. Additional risks Galexa will face are concerns within presenting building inspection departments and the new technology we are bringing to the industry. This includes additional analysis by inspectors relative to meeting code requirements for heat/insulation control, health hazards, deterioration, and lifespan. South West Florida currently lacks the superior product we offer that provides a hurricane-proof, dependable, and sustainable living area that remains affordable. In recognizing that there hasn’t been an innovative approach to improving construction performance here in the recent past, the Company must find and adopt a strategy that will give us a unique voice amongst the industry. Our products are different than existing offerings such as trailers and modular homes as a result of our technology. And although Galexa offers a more suitable and safer solution for inexpensive living, being different will drive a higher level of scrutiny. In the past 3 years, home prices have increased by 43.2%, the median income remained flat, and affordability (HOI) decreased by 28.3%. 14 | Page Naples/Marco: 30% of gross income is spent on housing with 10% down payment. Barriers to the Development of Affordable Housing Process: All zoning decisions require a super-majority 4-1 vote by the county commission to be approved. Density and Activity Centers: Collier County has a very low base density of four residential units per acre a zoning hearing and super-majority approval is required to apply the county’s affordable housing density bonus program to a development that desires to include affordable units and build above the four units per acre base. Impact of Factors: traffic, water/sewer systems, storm water management, open space, preserve, endangered and non-endangered species will all have their impact on building. Still other projects including jails, EMS, libraries, community parks, regional parks, government facilities, school, and others will have special requirements for building. Critical Need for Affordable Senior and Special Needs Housing 15 | Page Target Market Galexa’s target market consists of affordable homes, beginning in several areas of Florida; these homes will appeal to individuals categorized as the middle class, workforce, renters, and first-time home buyers. Galexa will openly pursue this segment of the housing market which will ultimately attract individuals on a fixed budget, since incredibly high housing prices are sending them across the country looking for alternatives. There are roughly 75 million millennials in the United States who are between the ages of 18 & 35 (15% of Collier County Population, 15% of Lee County Population, and 13% of Port Charlotte County Population). They have a reputation of delaying some of the major steps toward traditional adulthood: marriage, children and purchasing a home. They have grown in an expanding world of choice and options for almost everything they ever needed or wanted. Millennial homeownership in the U.S. is at a record low because housing is less affordable compared to the overall population. “Millennials are struggling to find affordable homes, especially in the Naples area, where the median price for a home sits around four hundred thousand ($400,000), almost double that of neighboring Ft. Myers,” according to a 2017 report by real estate website Zillow. A total of 40 percent of households in Collier County are paying an unhealthy amount — more than a third of their income — on rent or mortgage. In addition, the record level of student debt makes it more difficult to take on a mortgage loan. According to the Federal Reserve, there was $1.44 trillion in outstanding student loans at the end of the first quarter of 2017. As a result, their consumer spending has decreased, and they are beginning to monitor their financial accounts, making them more knowledgeable about the fees being paid. According to a recent survey, forty seven percent (47%) of young people between the ages of 18 and 34 would rather spend their money on traveling than buying a house; this shows that they value experiences over owning materialistic things. Not only are houses more expensive but it’s tough to scrape together a down payment when you’re already running a tight ship on dining and entertainment and paying more than previous generations for health care, education, retirement, and student loans. 16 | Page Some millennials are willing to pay extra for sustainable offerings. These millennials are more interested in a company’s sustainability practices when purchasing an automobile, food, personal care products, consumer electronics, apparel, and household cleaning products. This green generation says sustainability is a shopping priority. That is why the sustainable aspect and energy efficiency achieved by Galexa’s products are highly desirable to this age group. 17 | Page For Galexa’s commercial construction market, spending from commercial builders and developers is forecast for slow growth in 2019 but is projected to be followed by an increase in 2020. 18 | Page Creative Strategy Galexa plans to use its TV reality show concept, social media and internet-based marketing as its primary drivers, while also utilizing a direct sales force, relationship selling, and contractors to reach its target markets. These channels are most appropriate because of time to market. Investment will be raised to account for the capital requirements necessary for fast access to established distribution channels. The owners of Galexa want to emphasize to potential customers they are more than a construction company, they are complete coordinators of internet and direct construction related sales and logistics. Galexa plans to advertise via Google, Facebook, Twitter and through proprietary and aggressive organic internet-based marketing approaches which utilize thousands of “landing pages” to drive organic searches in every community where a search is done related to our products and services. We will also invest in a reality show and promotional videos on technology and pre-engineered building systems and their use for building affordable homes and commercial projects. Finally, we will invest in more traditional forms of advertising including magazines, newspapers and radio. The Company’s website will include information on the Company’s products and services and will have an advanced e-commerce component whereby clients can order their home online or request a retail custom build or commercial quote. The site will also include background information on the company owners, executives and contractors. References to the website will be mentioned in all other forms of advertising. Channels used to reach market segments include sales associates, the Internet and direct mail. Pursuing sales through multiple distribution channels is unlike many of our competitors and by providing a differentiation in our price points and speed of delivery, Galexa believes production volumes can be maintained with confidence. This stability will also afford the company an advantage to scale and develop into additional geographical markets at a rapid pace. Distribution Channel Galexa will be using the internet, social media, sales associates and direct mail distribution channels. We will be designing and selling the homes and wall shell systems, with our team of architects, designers, engineers, contractors, steel fabricators, builders, business developers, and GCs. Website The website www.galexausa.com has been developed and is being upgraded to become more robust and supply our prospective clients with full information on the Company, our products and total costs involved in purchasing a home or shell wall system. We will provide them an efficient way, in which to order our products and coordination with our entire team. The beginnings of our site can be seen in the image to the right. The cost to further develop the website has been included in our initial budget, with website maintenance costs included in our ongoing expenses. 19 | Page TV Show The TV show will first focus on the full process of designing, building, and selling Galexa’s homes and shell wall sytems. It will feature the innovative technology and modern, eco-friendly, safe, and affordable products we create. Once they’re finished, live testimonials from the homeowners and contractors will be shown. Future episodes will target the advanced SuperComposite building systems how Galexa developed the technological and the advances found in these systems that help drive costs down and decrease the time it takes to construct. Channels: HGTV, DIY Network, Netflix Media Reach - TV Commercial Galexa will run 30-second TV commercials on the target demo’s networks and will create a TV show in targeted regions. Advertising can be shown on Fox Morning Blend, Wink News, and other television channels on (on 20 | Page their websites, as well). One of the strengths about advertising through television is its wide range of exposure. WINK News, Southwest Florida’s News Leader, reaches more people than any other local medium in the Ft. Myers/Naples DMA (Designated Market Area), their coverage area includes reach into the following: Lee, Collier, Charlotte, Hendry, DeSoto and Glades. Fox News is the #1 most engaged news audience on the web. FOXNews.com's compelling news content and trusted multi-platform network attracts a loyal, upscale, and unduplicated audience; this offers advertisers an exceptional opportunity to connect to unique audiences otherwise unreachable. Fox News and Wink News both have high repeated exposure rates, which will allow Galexa to reach its target audience. Radio The chart above shows that the desired target market listens to radio; this concludes that a variety of people will be reached. Radio advertising will provide both scheduling and creativity flexibility, so it is relatively affordable depending on frequency and production cost. To abide with the chosen target market, the radio stations that would create the most reach would be Y100.1, B103.9 and 105.5 The Beat. The ad will be a 30- second audio commercial that will be executed on a continuous basis throughout the year. Radio Script: “Hey, does the idea of owning your dream home seem unrealistic? Well think again, Galexa is the future of affordable and sustainable homes in SWFL. Our homes are selling quickly, act now to buy your customized home at a reasonable price! Open house will be held Saturday, February 3rd. To learn more about Galexa,visit our website: www.galexausa.comor call (239)963-2640. Galexa: Affordable Homes.” Newspaper Newspapers have the potential for high-impact messages; pictorial images can attract attention and enhance the visual presentation of Galexa. The way consumers read a newspaper varies from print and online to tablets and smartphones. Naples Daily News has come up with innovative media solutions to reach large audiences in print, online, and mobile; their print/electronic reach statistic states that they have 206,675 readers all week. Another opportunity is for the Company to place an advertisement in Gulfshore Magazine/website; this magazine has 143,000 readers and 46,460 are in the Naples area, this will give the company high exposure. Costs associated with advertisements in the Naples and Ft. Myers News are included in our marketing budget. Google AdWords Galexa will use Google AdWords as a form of advertising. The objective of this tactic is to increase website traffic for the Company; enrolling this flexible service will attract potential customers. By utilizing search engines' AdWords, potential customers and people looking for a new home, hurricane-proof home, or eco- friendly home will quickly discover Galexa, as it will appear on the search engine's first page. Google AdWords 21 | Page has the pay-per-click method, therefore, every time a customer clicks on the website, $0.50 or the bid amount is charged. Over time, this total would, as it should, increase to maintain awareness in its market and bring new potential consumers. Facebook - Instagram – Pinterest (Social Media Videos) The purpose of creating Facebook, Instagram, and Pinterest pages is to improve brand awareness with a fine- tuned audience, extensive analytics (performance and ROI), and cost per click method. Their Power Editor tool makes it easy to handle the social media advertising campaign. This website also has an "insights" tab where they can provide you with metrics such as the weekly reach, page likes, engagement, and measuring the page with competition. The pages will feature encouraging posts on benefits of buying affordable homes, innovative designs, and articles about our product line to keep the target interested. Creating these pages are essential; it is an easy, low-maintenance way of communicating with the target market. Direct Mail By sending direct mail about Galexa, one can predict that the consumer will receive it. If it addresses their needs and wants, they will end up responding either by going onto the Company’s website, calling the Company, or checking their social media accounts. Using USPS, an estimate is given for mailing directly to each door, but a specific zip code must be set; however, every door direct mail order cannot exceed 5,000 pieces which can become an issue, but there are other direct mailing websites that can be used. The mailings will be sent to apartment complexes, condominiums, trailer parks, and students living in dorms. Customers The U.S. has a shortage of 7.4 million affordable rental homes available to low income renter households, resulting in 35 affordable and available units for every 100 low income renter households. This leaves an absolute shortage of 3.9 million affordable rental homes for low income renter households (Figure 1) and gives higher income households a broader range of affordable housing options. 71% of low income renter households are severely cost- burdened, spending more than half of their income on rent and utilities. The NLIHC-led United for Homes campaign proposes a realignment of federal housing expenditures that would provide greater investment in housing for the lowest income households with savings from modest reforms to mortgage interest deduction. These reforms would provide 15 million additional low and moderate-income homeowners with a tax benefit from their mortgage and generate $241 billion in new revenue for affordable housing programs for the lowest income renters like the national Housing Trust Fund, vouchers, and public housing. 22 | Page Competition Hight-Tech Tilt Focus: Hi-Tech Tilt provides panels which are framed with metal studs and track. The walls can be pre- fabricated in a plant or cast on-site on the building slab. Location: Laredo, TX Social: Facebook (330 followers) Publicity: World of Concrete Expo review Website: https://www.hi-techtilt.com Sundog Structures, LLC Focus: Design, fabricate and install shipping container homes and buildings on the site. They work with homeowners, developers and businesses to create buildings. Location: Tampa, FL Social: Facebook (1600 followers/likes), Twitter (20 followers), Instagram (94 followers) Publicity: HGTV, Dwell, Naples Daily News, Tampa Bay Times, Fox 35 News, Dikman Website: https://www.sundogstructures.com Slender Wall Focus: Slender Wall provides Architectural Cladding Panels that are high performance, thermal and fire code compliant, architectural precast composite cladding systems to reduce construction costs. Location: Midland Virginia Social: Facebook (517 followers) Publicity: Fox News Insider Website: www.slenderwall.com New Generation Home Builders Focus: A company that sells customized, prefabricated homes. They specialize in the smaller tiny homes or offices. They provide sustainable, fully functional homes, though they also take orders for custom builds. Location: Lakeland, FL Social: Facebook (217 followers) Publicity: Fox News Insider, Tiny House Blog Website: http://nghomes.com The Container House Focus: Residential and commercial buildings. They serve in South Florida, Miami Dade and Broward counties only and we export outside USA. Their buildings are not prefabricated, they are completely built on site. Key: Stronger, Affordable, Sustainable, Safer. Location: Miami-Dade and Broward, FL Social: Facebook, Instagram, Twitter, Google + Publicity: None. Website: http://www.thecontainerhouse.com Niche Galexa’s niche will consist of filling the low-cost affordable housing shortage that currently exists in Southwest Florida and around the country. We will specifically plan to target millennials, workforce housing, 23 | Page retirees and others who are on a fixed budget as well as military veterans and individuals with an interest in sustainable and eco-friendly living. This niche has significant volume. Additionally, there is a niche of available shell wall systems and none that provide all the attributes provided by the Galexa SuperComposite pre-engineered technology. As a result of filling these niches in the market place we are positioned for a positive long-term outlook of ongoing sales and profitability. Promotion Galexa will participate in local and national promotional events and already has a presence at several of these events thereby increasing the company’s brand recognition. These promotional activities will serve as a supplement to our other marketing tactics. Events An approach of paramount importance to Galexa’s success will involve appearances at numerous events and trade shows. Our primary pursuit will be to attend those events attracting home builders and individuals who are considering new home construction. With the production of our two fully equipped transportable demonstration units, the company will have an impressive showing at each event. We believe this will have a significant difference in driving orders and overall revenue to be driven. Initially, events and trade shows will be local, although they will then expand into broader markets that follow suit with our controlled growth initiatives. Some initial events and trade show events we plan to attend include: 1. FGCU, FSW, Ave Maria, Hodges, Keiser, Lorenzo Walker Institute Seminar: Host an event at various colleges in Collier/Lee County to inform college students about the prospect of affordable housing options.  Create an architectural model to help students visualize how the home will look  Create video of the full building process  Show selection of plans and upgrades  Provide financial overview  Distribute media kit (articles, studies, research on benefits)  In addition to advertising, what plans do you have for graphic image support? This includes things like logo design, cards and letterhead, brochures, signage, and interior design (if customers come to your place of business). 2. Farmer’s Markets in Naples- Set up table to capture attention of people interested in sustanability and spread the word about Galexa. Try to sell farmer market booths or commercial portable units. 3. Miami Art Basel- Set up a model for a home, store, art studio, work shed or farmer’s market booth. Tradeshows NAHB International Builders' Show® Focus: 80,000 builders, general contractors, remodelers, designers, flooring professionals, as well as product specifiers from around the globe. Design & Construction Week® (DCW) Date: January 9-11, 2019 in Orlando, FL Location: Orange County Convention Center. Page 24 of 33 24 | Page 10th Annual Fall Home & Garden Show Focus: Latest products and services for everything from builders, contractors, materials, decks, pools, spas, entertainment systems, storage, plants, landscape displays/materials, kitchenware, and much more. Date: August 10-12, 2019 in Orlando, FL Location: Orange County Convention Center. Future Projections As Galexa progresses, we will expand branding opportunities by introducing additional offerings that complement our core product line. These will include but not limited to some of the following: Solar Panels: Home buyers will have the option to install solar panels, in the long run this will help reduce the cost of energy consumption and gas bills. Furthermore, the buyers will be able to pay off while using free their energy as there is more than enough sunshine in Florida to generate electricity. The U.S. places second in the world in annual carbon dioxide emissions at 17.9%, right behind China; therefore, using solar panels can lower your carbon footprint by replacing utility power with clean electricity from solar panels. Including this energy efficient feature in the homes can also help to reduce U.S. dependence on foreign energy, following the sustainable way of living. Location Daily operations for Galexa will be run from our administrative & sales offices located at 453 Bayfront Place in Naples, Florida. In an effort to keep our initial investment costs to a minimum, our construction processes will take place at two locations. The first location will be for completion of our Retail line of homes and pre-engineered shell wall systems which will be manufactured at the Coastal Prefab Walls facilities, located off Crystal Drive in Fort Myers, Florida. The second location will be for our Direct line of homes, which will be completed at our individual client’s land parcel where our assembly teams will make all connections to utilities, assemble the units and perform work with client to address all zoning and permitting requirements. Distribution Channels Sales distribution for the Company will be multifaceted, consisting of Direct (mail order, Web, catalog) and through our Retail group consisting of Galexa Sales Agents and Real Estate Professionals. Government and other bids on contracts will be completed via Galexa’s Executive Management Team. Sales Forecast Galexa has already experienced a significant prospective client interest during our launch and we have individuals beginning to take contracts and secure construction deposits. As a result, we have a significant pipeline of prospective clients in excess of two hundred million dollars ($200,000,000). If Galexa closes just 30% of these prospective orders, we will beet our projected numbers in the attached financials. Production Page 25 of 33 25 | Page Production techniques and costs will be driven by both the Department of Housing and Urban Development Codes for housing construction, as well as Galexa’s technology through its Architect, Structural Engineer, Manufacturing Group and its General Contractor. Overall costs will be scrutinized on an ongoing basis by the Company’s CFO, David Tingley, as well as quarterly by Galexa’s Board of Directors at their regularly scheduled meetings. Quality control will be overseen by Galexa’s management team. In conjunction with the Company’s contract partners involved in daily construction, customer service and inventory control will be overseen by the Company’s CEO and CFO, Chuck Ardezzone and David Tingley. Product development will be a combined effort by the Company’s COO and Chief Design Officer as well as our GC and development partners to continually perfect Galexa’s final product. Legal Environment Licensing and bonding requirements, permits, health insurance, workplace and environmental regulations, special regulations, zoning and building code requirement and Builder’s Risk insurance coverage will all be the responsibility of our construction partners and manufacturers, thereby lowering overhead costs and liability. Trademarks, copyrights, or patents will ultimately come up because of innovation in construction and will be perfected and pursued by Galexa’s management team upon approval from its Board of Directors. Galexa has retained the services attorney Kevin Carmichael of Wood, Buckle & Carmichael, to help produce our legal documents for general sales and to help create land trusts and other development related documents. Mr. Carmichael is based in Collier County and is a seasoned professional in both real estate and tax law. Personnel Galexa currently employs (5) individuals, including Chuck Ardezzone [CEO], David Tingley [CFO], Paul Inglese [Chief Design Officer], Dave Taylor [V.P. of Construction] and Tony Richardson [Director of Sales]. The company also plans to hire two support staff members within the first three months of the Company’s completion of its fundraising. The company’s senior management team will receive a salary and incentive for performance based upon a percentage of the Company’s gross profits. Two additional employees will be hired into the Company within the second full year of business. These individuals will come aboard at a rate of thirty thousand dollars ($30,000) and sixty thousand dollars ($60,000) in base salary. One of these employees will be a General Administrative Assistant and the other will be an Executive Assistant to the Management team. Both individuals as well as the three managing members will be cross trained in sales, so we will ultimately have a sales force of five. The Assistant to the management team will be paid a higher salary as they will have more responsibility and require a greater background knowledge in both construction and business operations. Real estate professionals and brokers will be recruited to help formalize and solidify contracts. Training methods and requirements will evolve as the Company grows and written job descriptions, employment contracts, schedules, procedures, a company manual, and other “best Human Resource practices” will be put into place and followed to ensure the structured growth and performance of our workforce. Page 26 of 33 26 | Page Inventory Although Galexa will outsource its construction operations and will require very little inventory to be kept on hand, it will have two model home units held in its inventory. This will consist of one sales model to be located at Bayfront and one fully equipped one thousand square foot home and also one that is approximately four hundred 400 square feet, which can be transported to trade shows and other locations where sales opportunities exist. Suppliers Galexa’s key supplier will be Lowes Stores on a national basis. The company has agreed to develop a corporate relationship starting in Naples Florida and expanding nationally. With the program Lowes offers their hightes discounts for competitive pricing and also ensure to consistently monitor our inventories and ship all building materials for specified units in bulk deliveries. This helps keep all General Contractors and their subs on a high tolerance with little shrinkage, thereby driving down overall prices to complete. In addition, when specific items are beginning to be phased out by Lowes, the company will indicate the upcoming event and provide Galexa extremely attractive pricing (sometimes as much as a fifty to seventy percent (50% to 70%) discount) if we will buy out their remaining inventory of the item. Credit Policies Galexa sell some of its product via an in-house credit line we are developing with Lexx, which is a fund we will partner with to provide homes and construction financing. In addition, we will work with lending institutions to help facilitate customer requests for financing their home or commercial shell wall systems. Managing Accounts Payable Galexa will age its accounts payable to suppliers for thirty to ninety days to help determine who to pay and when. Depending upon the item or service performed as well as the supplier’s terms, we will minimize early payments to avoid depleting our cash and avoid paying late, to keep good relations and keep a good credit rating with our suppliers. In some instances where there is a valuable discount available for early or prompt payment, we may also elect to do so. Page 27 of 33 27 | Page VI. Management and Organization Chuck Ardezzone – Chief Executive Officer Chuck has been passionate about real estate since he got his real estate license in NYC working with Mylonas & Papolis Century 21 office in the 1980s. He has been producing real estate TV shows over the last 5 years such as: “Malcolm Flips Vegas,” “Billionaire’s Coast,” “The Real Estate TV Show of SWFL,” he has also has produced over 500 real estate videos. Chuck will be instrumental in Galexa’s marketing plan, especially in its production of a half hour TV show to be used in a national ad campaign representing the Company, customers and brand. As a seasoned film and TV producer, Chuck is constantly putting together win -win deals for all parties involved. Chuck recently got into real estate development through his many contacts with investors, developers and real estate professionals. His strengths will be utilized to raise equity capital and to spearhead marketing. He owns a full-service marketing company which handles marketing for over 30 real estate companies, 5 builders and other companies including The Hyatt House, The Marco Marriott, Toyota, Honda, The Naples Wine Festival, and The Naples Humane Society, to name a few. Finally, he is an executive producer on many TV shows and movies, many of his contacts in these businesses love to invest in real estate and are extremely excited about Boxville. David Tingley – Chief Financial Officer David has served as President of First Financial Solutions LLC, a Naples, Florida based capital advisory group, which he formed in 2005. Prior to that he held positions with Wells Fargo Private and Republic bank as a senior loan officer in Ann Arbor, Michigan. Additionally, he held positions as Director of Corporate Relations for both Patriot Solar Group and Equitech International which are international manufacturing companies. Throughout his twenty-five year plus career, David has developed an expertise in complex contract negotiations and is well versed in international businesses, finance, and real estate. Some of his specific accomplishments also include managing a staff of twenty loan officers in his mortgage company and personally acquiring and self-managing sixty residential and commercial real estate units. Galexa believes that David is uniquely qualified to assist its organization in fulfilling growth strategies and objectives. Dave Taylor – Vice President of Construction Rick served 24 years in the U.S. Air Force and retired as a full Colonel in 2012. He was then recruited to Naples to working in hospital administration serving as Chief Operating Officer of Physicians Regional Medical Center. For 4 years he was responsible for day-to-day operations of the hospital and directly supervised 13 departments. He led the design, construction, and oversaw the hospital's opening of a Walk-In Clinic, Rehab Center, and Primary Care office on Marco Island… as well as the design and construction of a second Walk-in Clinic and Primary Care center in East Naples. In January 2017, Rick joined Avow Hospice as Senior Director of Development. He was a key leader securing major gifts, oversaw donor management, and implemented improved healthcare services and expansion plans. He also served Page 28 of 33 28 | Page as the senior military advisor for the Avow “We Honor Veterans” program ensuring patient and family satisfaction for military veterans, hospice care, child services, and bereavement programs. During his military career, Rick was a senior Air Force officer commanding in leadership roles worldwide. He held military positions in Germany, Hawaii, the Pentagon, and NATO, living and working in 80+ countries. He served as a senior commander at Andrews Air Force Base supporting the President of the United States and all Air Force One missions. He then led a NATO unit at Ramstein Air Base, Germany, where he was responsible for all construction, security, engineering, maintenance, transportation, human resources, supply, logistics, food service, safety, and linguistic translation… supporting the 26-nation command. In addition, Rick served as Deputy Base Commander at Eglin Air Force Base in Ft. Walton Beach, Florida. There he ensured support to the 725 square mile base (Department of Defense's largest installation) and directed all operations for over 35,000 personnel with $16 Billion in infrastructure. He led strategic planning and oversaw all housing, construction, healthcare, food service, facilities, security, safety, fire/rescue, human resources, environmental, IT, logistics, 3,000+ houses, and 1,000+ dormitories. He also supervised the Air Force’s 4th largest Medical Center encompassing 1,500 medical staff supporting 85,000 beneficiaries and 300,000 annual patient visits. Rick next served as Base Commander of the United States Air Force Academy in Colorado Springs, Colorado, where he commanded base support, housing, construction, food service, and a Medical Center supporting 4,000+ cadets a military community of 35,000+. Finally, he was Director of Manpower & Personnel for U.S. Strategic Command, overseeing all human resources programs for the United States' classified nuclear and space forces. In 2001, he commanded his unit to selection as U.S. Air Force Mission Support Squadron of the Year and was personally selected as the 2001 U.S. Air Force Senior Personnel Officer of the Year. Rick has worked for two U.S. Presidents (Bush 41 & Bush 43), for General Norman Schwarzkopf, and was also the Aide to an Air Force 4-star General for three years. He has extensive operations, construction, and healthcare experience as well as leadership expertise working with the USO, Wounded Warrior Program, Air Force Academy Foundation, American Red Cross, Fisher House, and many Chambers of Commerce nationwide. Rick holds a Bachelor of Science Degree from the United States Air Force Academy and three Master of Science degrees including one in Public Administration & Policy from Central Michigan University. He will add an exceptional level of professionalism to the Galexa Team. Paul Inglese – Chief Design Officer Paul started his career in 1986 as a Industrial Designer, specializing in the design and development of brand identification. Within a short period of time Paul was awarded a contract with Sunoco Oil Company for 300 locations throughout the Northeast United States. Shortly after the completion and success of the Sunoco Oil project, Paul acquired accounts with some of the nation's leading retailers and mall developers including Starbucks Coffee, Miller Brewing Company, Anheuser Busch, Trans World Entertainment, McDonald’s, Burger King, Cinnabon, Blockbuster Video, Hollywood Video, General Growth Properties and Forest City Development, working on projects throughout the United States, Canada, and Puerto Rico. With the challenges and constraints of working in shopping malls, airports, stadiums, and arenas, Paul began designing with modular components that were manufactured off-site. Seeing the many advantages of modular construction, Paul diversified into the design and development of advanced building technologies. After 14 years of product design, engineering, prototypes and testing, He completed the development of SuperComposite building systems. Page 29 of 33 29 | Page Paul graduated from the Art Institute of Pittsburgh with course studies in Architectural Design, Architectural History, Product Design, Color Theory, and Visual Communications. He is an associate member of the American Institute of Architects, a member of the Design-Build Institute of America, a member of the American Concrete Institute, holds a State of Florida Certified Building Contractors License, and is a member of the Naples Accelerator Program. Paul brought his SuperComposite building system technology to Galexa. This system introduces new processes, new technologies, new ways of working and has moved away from the traditional model to one driven by digital engineering, off-site manufacturing, and modular components. By harnessing this technology, Galexa can plan full virtual building structures, testing every scenario that may affect construction and operation, building with components that have been designed and engineered to work together. These can all be manufactured in factories to ensure quality and to minimize risk and disruption at the job-site which is the future of construction. Tony Richardson – Director of Sales Tony Richardson has been in the new home construction/real estate industry in Southwest Florida since the 90’s. A native of Michigan, he earned his B.S. in Business Administration at Northern Michigan University and gained Masters Hours in Marketing Management at Michigan State University. Richardson has more than 30 years sales, marketing, and management experience in Wisconsin, Michigan, and Florida. Mr. Richardson built a successful new home construction business as a licensed residential contractor in the 80’s. As a licensed Michigan Residential Contractor, he founded and directed Sunstar Solar Systems, developing a line of passive solar retrofit greenhouses which he manufactured and marketed throughout Michigan as well as Huron Forest Community Greenhouse, a pilot program for the State of Michigan meant to integrate mentally and physically handicapped persons back into society through working in a greenhouse setting, both in Oscoda. Richardson moved to Florida in 1988 and reentered the construction industry as the Marketing Manager for Honc Construction in Bokeelia. He then served as the Vice President of Business Development for Lee Mac Homes of Fort Myers prior to joining Avatar in 1995 as Sales Manager to assist in launching Cape Harbour, an upscale gated residential community in SW Cape Coral. Over a 10 year period during which he formed Green Earth Realty & Consulting in 2002, Richardson was instrumental in launching three new gated lifestyle communities in Southwest Florida; Cape Harbour in Cape Coral in 1996, Bridgewater Bay in North Naples in 2000 and Province Park in Fort Myers in 2002. Working in all facets of the new home development industry, Richardson has been instrumental in overseeing the sale of over 1,100 homes accounting for over $414,000,000 in new home sales. Mr. Richardson has recently been involved in designing and marketing Scientifically Built SIP and ICF Mini Homes from 200 +/- sq ft to 1200 +/- on site including larger custom designed residences on demand. He is a 1031 Specialist, Certified E Pro Internet Professional, ABR Designate, Certified New Home Sales Professional (CSP), NAR GREEN Designee and a LEED Green Associate. Mr. Richardson sits on the Board of Directors for the Florida Gulf Coast Chapter U.S. Green Building Council, Chairs LEED FOR HOMES for the Chapter, and was selected in 2013 to Co-Chair the USGBC National Initiative “Highlighting Green Homes” as well as Greening The MLS” in Lee and Collier County, As a result of his diligent work for the USGBC, he was chosen as the "Member Of The Year" for the Gulf Coast Branch in 2013, Central Florida Chapter. Page 30 of 33 30 | Page He is a current member of the Florida Gulf Coast Board of Realtors, past member of Naples Area Board of Realtors, the Collier Business and Industry Association and Lee County Business and Industry Association’s Sales and Marketing Council. Todd Gates – General Contractor and Construction Advisor Since 1995, Todd has headed Gates Construction, Florida’s premier fully integrated construction, development and real estate company. They are an award winning Class “A” general contracting firm, Commercial Development Company, Commercial Real Estate Company, and Property Management Company that specializes in a diverse range of services. Gates projects include condominiums, hotels, office buildings, shopping centers, restaurants, educational facilities, government and medical facilities. In 2007, the firm was recognized as a Top Contractor by Southeast Construction magazine, and ranked second in volume by Gulf Coast Business Review in its Top 50 Contractors on Florida’s Gulf Coast from Tampa to Naples. Todd is the immediate past chairman for the Economic Development Council of Collier County (EDC) and he currently serves on the Board of Directors for the President’s Forum. Todd was recently nominated and is currently serving on the Board of Trustees for the Florida Chamber of Commerce Foundation and is a member of the Florida Chamber of Commerce Board of Governors. He is one of the founders and current board member for Liberty Bank. Todd serves on the board of directors for The Children’s Hospital of SW Florida, Junior Achievement, and the CEO Cultural Advisory Board for the United Arts Council. He is a current board member for the Chamber of Southwest Florida and a current board member for the Fellowship of Christian Athletes. Todd also serves as a Trustee for the YMCA and a Trustee for Hodges University. He serves as an Elder for the Moorings Presbyterian Church. He is active in the Naples Chamber of Commerce, helping to start the “Soaring with Eagles Program” aimed at the area’s numerous retired CEO’s and military leaders. He is a past Chairman of the Christian Chamber of Southwest Florida. He is a past president of the Collier Building Industry Association, the largest builder and development association in the state of Florida, and was named Builder of the Year in 2003. Recently, Todd has been named Entrepreneur of the Year by the Gulf Coast Business Review and has been recognized as one of Gulfshore Life magazine’s Men of The Year. In recognition of his commitment and dedication to the community, Todd was honored by the Education Foundation of Collier County as a 2007 Man of Distinction. Scott Aikns – Lead Architect Mr. Akins is a licensed and well-respected Architect in Florida, New York, Colorado, Illinois & North Carolina. He is also member of NCARB, American Institute of Architects, National Trust for Historic Preservation and USGA. He holds a Master of Architecture, from the University of Florida and has been a strong asset for Galexa in designing its initial models. Scotts experience includes numerous multimillion-dollar homes in Port Royal and other developments in Naples Florida as well as commercial and mixed-use developments such as Truluck’s Restaurants in Naples, Boca Raton, & Ft. Lauderdale, Weatherburn Art Gallery, John R. Wood Office Building in Ft. Myers, Tavern on the Bay Restaurant, Bayfront, Executive Offices, 800 Fifth Avenue South, Page 31 of 33 31 | Page and Spa & Fitness Improvements, Inn on Fifth, Naples, Florida. Prior to forming his own company, Scott worked as a Staff Architect with Lund Capital Group, LLC, where he designed 3 & 4 story industrial storage buildings, Avon, Colorado, Commercial & Industrial Buildings, Collier Park of Commerce. He also worked on projects such as Naples Beach Hotel Convention Building, Edison Community College, Charlotte County Campus, Immokalee Fitness Facility, Gymnasium Renovation Barron Collier High School, Golden Gate Fitness Facility, and multiple private residences. Before he moved to Naples, his career included projects in New York, including apartment buildings, Battery Park City, 54 - Story Residential Tower, 65th and 3rd Avenue, NYC,Cultural Arts / Hotel Facility, Meadowlands, New Jersey, Mixed Use Project for Jersey City, Corporate Headquarters for Hertz Rental Car, Rallye Motors Showroom and Repair Facility in Roslyn, New York. With all of his experience, Scott helps complete the Galexa team of experts that make for a paramount experience to our clients. Lois Bolin – Advisor Lois Bolin is a valuable member of Galexa’s Board of Advisors, she is a Strategic Innovator, Community Steward and Old Naples Historian. Lois holds a Ph.D and blends her 39 years of business experience in SWFL for both profit and not for profit organizations – all for the love of community, local history, and our veterans. She is married to retired executive and former USAF Fighter Pilot and Vietnam POW (5 yrs.-2 mos.), Wayne O. Smith. Her accomplishments include the Heritage Trail Museum, Naples Trolley Station and her role as the Cultural Heritage Tourism Editor. She also is the Board Chair for SWFL Veterans Alliance Inc., the Coordinator for Veteran’s Oral History Project (Library of Congress), Florida Chair for Keep the Spirit of ’45 Alive, Founding Member of Old Naples Waterfront Association and Naples Stone Crab Festival. Lois also works to forward a number of Public Private Collaborations including the Bronze Heritage Markers. Old Naples Walking Map, Naples Christmas Parade City Fest Founding Committee Member. Lois is also a Columnist for Patriot Column (Life in Naples), Cultural Heritage (Experience SWFL), Undercover Historian (Florida Weekly) and Old Naples Historian (Naples Journal). She has achieved numerous awards including 2017 NDN 25/50 Community Award; 2013 Woman of Achievement, America Association of University Women; 2011 SWFL Power Players, Gulfshore Business magazine; 2010 Business Players; People to Know, Florida Trend magazine; 2008 Woman in History, ABWA Neapolitan; 2004 Woman of Initiative, Community Foundation of Collier County. We are honored to have Lois help oversee Galexa’s strategic approach to grow the organization in a positive and charitable way. Professional and Advisory Support Galexa,LLC -Board of Directors  Chuck Ardezzone – Chief Executive Officer  David Tingley – Chief Financial Officer  Rick LoCastro – Chief Operating Officer  Paul Inglese – Chief Design Officer  Mike Christoff – Member Owner  Larry & Denise Kirschner – Member Owner Galexa,LLC – Board of Advisors  Mike Christoff  Todd Gates  Lois Bolin Page 32 of 33 32 | Page VII. Startup Expenses and Capitalization Galexa will have expenses as we expand our operations. An estimate of these expenses will include but not be limited to two hundred seventy thousand dollars ($270,000) for building out the sales center a four hundred foot demo unit trailer, five thousand dollars for development of our website, two hundred thousand dollars to develop and begin implementing social media campaign including purchase of Google and Facebook AdWords and advertisement, fifty thousand to begin production of commercials and container home movie, one hundred thousand dollars ($100,000) for professional services including attorneys and CPA to properly prepare engagement agreements and other contracts for ongoing service with suppliers, employees and others. Surplus funds will be needed for meeting payroll, paying insurance and providing cash flow during construction phases. Financial Plan Galexa’s financial planning consists of a twelve- month profit and loss projection, a four-year profit and loss projection, a cash-flow projection, and a break-even calculation. Together they constitute a reasonable estimate of the Company's financial future. Please see details of each of these projections in the attached financial projections document. Equity Investment Galexa seeks investment capital from qualified investors in the amount of one million dollars. Funds will be utilized to solidify engagements with partners and suppliers, to assist with general sales and general administrative start-up costs as well as to complete a variety of initiatives which require professional services such as website and social media development, drafting employment contracts and supplier agreements and purchasing insurance policies. Some funds will be used towards employee payroll and to increase the Company’s reserve surplus. Further details of this offering can be found in the attached Galexa Private Placement Memorandum. Page 33 of 33 33 | Page VIII Appendices Financial Projections: See attached Excel spread sheet for all financial projections and assumptions