Information compiled and researched by Bob Burg East Fraser

Information compiled and researched by Bob. Burg@East. Fraser. Bowling. zzn. com East Fraser Bowling & Entertainment

WHY INVEST IN BOWLING? l There is nothing more important than the answer to this question. The answer is multi-faceted, taking into consideration financial and market factors. It is a good cash business. l From a financial aspect, bowling provides a strong cash flow, although it also requires a large capital investment. The equipment purchase provides a long life and is very durable, as evidenced by the fact that existing centers are still operating with the original equipment purchased forty years ago. l The tax laws provide accelerated depreciation and other tax benefits that are favorable to this investment. The day-to-day business is almost all cash. With the use of the Brunswick Center Management System, computerized cash registers and security devices, business controls are all in place. Credit card use is less than 10% of all business, and there is no accounts receivable. Another important feature is the low inventory requirements. From the marketing viewpoint, the number of participants continues to grow. The population is always looking for family fun entertainment at an affordable rate, and bowling answers those needs in all aspects. Bowling appeals to all age groups, is easy to learn, participation is year-round, there are no weather restrictions and equipment purchases are not a requirement for participation. l l In today’s lifestyle, recreation spending has been growing at 8% annually since 1990. As lifestyles have changed, there is an increased need for family activity. Dual family employment and longer work schedules limit the amount of free time for recreation activity, especially for family outings. These factors are all favorable for a modern recreation center. Today, there are specific bowling program for families, young adults, seniors, students, youths, casual and competitive bowlers.

Bowling generally returns 1520% l The Company is to acquire certain lands in Chilliwack British Columbia for the purpose of developing a 24 lane ten pin bowling facility (approximately 2. 5 - 3 acres) which will provide bowling and other forms of entertainment together with a Restaurant and Sports bar. The facility will be located in a highly visible location (in the Garrison Village Project on the old Canadian Forces Base near Keith Wilson Road and Vedder Rd. ) It will be easily accessible to Chilliwack from Abbotsford to Hope. It will encompass a population of over 280, 000 people. The Company has entered into Negotiations for the supply of the required bowling equipment with Brunswick Canada for this 24 lane Center. and is working with designers and architects to draw the plans for the Facility. l The Facility plans call for a 25, 700 square foot steel and concrete or Concrete Tilt up building (which one is more cost effective) It will house the 24 lanes of 10 pin bowling, a Restaurant, Sports Bar and Arcade. The company may lease the Food Operation to a local restaurant or franchise. The Company will operate the sports bar and concourse lounge through a subsidiary company.

l l l MAJOR PLAYER Robert Burg has been involved in successful developments and businesses over the past 35 -year in Canada and the USA.

Recent Bowling History in British Columbia Growth in the 10 – Pin Bowling business has been phenomenal over the past 10 years in British Columbia and more importantly the Vancouver Lower Mainland The-Zone Rev’s Xcalibur Sandcastle The-Zone (40 lanes) in Richmond British Columbia 1997 (48 lanes) in Burnaby British Columbia $3 Million makeover and upgrade 2003 (36 lanes) in Surrey, British Columbia 2002 (20 lanes) in Surrey, British Columbia makeover and upgrade 2003 (38 lanes) in Coquitlam British Columbia October 2008

SOURCE AND USE OF FUNDS l l l l The total project cost is project to be $9, 500, 000. Of this amount equity financing of $2, 510, 000 is being sought. The balance will have conventional mortgage. These funds will be used for: 1. Land development cost charges $ 1, 655, 000 2. Bowling Equipment $1, 170, 000 3. Building & Construction $2, 500, 000 4. Furniture & Fixtures $ 400, 000 5. Cash Fees, Inventory $ 150, 000 6. Project Manager $ 380, 000 Total $6, 255, 000

FAMILIES can BOWL 10 – pins in more than 80 countries. l THEY DO AND HAVE FUN

IN DAYS OF OLD

NEW DESIGNS

Cosmic Bowling today

A Sports Bar This will be designed for customer comfort with a number of activities to attract and retain customers. The lounge should feature a number of television sets with cable access to sport networks, NTL (electronic trivia competition), electronic darts, adult video games and coin operated billiard tables. The positioning of the Sports Lounge, which should be adjacent to the food service area, can provide quick service to lounge patrons and assist in controlling payroll expense by having one person service both areas during slow business periods. Food selections will feature finger foods, high quality sandwiches and pizza. Previous market research has proven that these selections are what bowlers want and expect, and the center should maintain them on the premises for their food requirements.

The Snack Bar This service will be located next to the lounge, which will assist in maximizing customer service and payroll productivity. A menu limited to finger foods, pizza and sandwiches will provide the opportunity to emphasize quality products and control. By limiting selections, we will benefit by improved inventory control, easier employee training, minimal waste and still satisfy customer needs.

ANYONE CAN BOWL

Total 2224224 2266966. 72 2393800. 64 2549245. 28 2685497. 76 Pro Shop 29811. 6 32196. 52 34122. 82 36140. 83 38324. 31 Arcade 81900 88176 88200 96360 102396 Vending 16380 21162. 24 17640 19272 20479. 2 Lottery 14670 15871. 68 15876 17344. 8 17431. 28 Sports Bar 164250 186150 197100 208050 219000 Restaurant 61424 77154 71890 77952 78677. 2 Snack Bar 67567. 5 52905. 6 52920 57816 61437. 6 Total 436822. 1 473616. 04 477748. 82 512935. 63 537745. 59 Mortgage 388000 388000 Equipment Payments 94050 94050 Rental Payments 5160 12000 10000 6000 4000 Depreciation 182000 177000 168000 159000 148000 Real Estate Taxes 38000 55000 31000 74000 79000 Insurance 21000 28000 35600 38600 39500 Loan Interest 140000 1100000 75000 0 Other Taxes 22000 31000 42000 45000 48000 Miscellaneous 819 Total 891029 895050 868650 879650 800550 Payroll 335000 322200 343000 352000 361000 Federal Tax 33600 33500 34300 35200 36100 Repairs & Maint. 22000 47500 30000 38000 30000 Supplies 9400 11000 14000 17000 20000 Utilities 23565 25000 28000 30000 Telephone 2200 2570 3000 Cost of Goods Variable Expenses

Monday 9 am-10 am 4 x 2 10 am-11 am Morning Ladies 11 am-12 pm - 1 pm - 2 pm - 3 pm Seniors programs 20% 2 x 2 3 pm - 4 pm 4 pm - 5 pm 5 pm - 6 pm 6 pm - 7 pm - 8 pm Monday Night NFL League 8 pm - 9 pm