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© 2018 Kahuna Value NaVigator- a Tactical Business Unit of Kahuna Business Group, Inc. All Concepts, Content & Program Design is the Intellectual Property of KBGI. All Rights Reserved

XTREP Elite Ambitious, driven eXponential enTREPreneurs with vision to maXimize value of their business as their primary wealth vehicle

100X 100 eXponential enTREPreneur (XTREP) participants

100M $100 Million dollars total value improvement (average of $1M/XTREP)

Value Challenge R&D Mission of 100 individual XTREPs to document & improve business

value by $1 Million (or more) in two years -- Aggregate group valuation

improvement: $100 Million (or more) in 2-Years (2019/2020)

Complete Program – Summary Overview:

Two-Year Dynamic Business Valuation™ Program -- designed exclusively for

eXponential enTREPreneurs with (3) Three Distinct & Synergistic Focus Areas:

(1) R&D (2) XTREP Study (3) Peer Challenge

1. Cutting-Edge Research & Development a. “enTREPreneurial Skunkworks” – We seek feedback from

ambitious enTREPreneurs with a vested interest and

compelling DRIVE to assist us in design requirements to

achieve more faster – AKA eXponential!

We’re not looking for “I’ll Try-ers”. We want committed “Make it Happen-ers” with skin in the

game helping design, build & improve best-practices and best tools for us all as enTREPreneurs

“scratching our own itch”. We’re building a 100-member test-group for benchmarking with a

feedback loop for practical design & improvement ideas.

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b. Emerging technology with converging visual data via open APIs -- Calibrated to provide ongoing

dynamic guidance for enTREPreneurs. Information from the past for decisions today calibrated

to the future we are designing and building. Below is just one example of the high-power data

visualization from multiple data inputs. Looks like the future just arrived.

Example of Customized Dynamic Guidance System™ Data Visualization Dashboard

c. Despite cool tools and technology, we are still early stage for applying to entrepreneurs $1M

to $10M with ambitions of $10M to $100+M. We still have a lot to learn and apply to fully

utilize the horsepower at our command.

d. Harnessing the power of Dynamic Business Valuation™ from initial assessment to desired

valuation trajectory AND all aligned with existing strategic business planning. Achieving your

business goals and ambitions for growth, profit and cash is important. Doing all of this while

maximizing business valuation as a foundation of wealth is an unprecedented X-Factor!

2. eXponential enTREPreneur Peer Cohort Longitudinal Study a. Non-scientific, yet organized for data intake, individual & aggregate group results tracking over

a two-year timeframe.

b. Tony Robbins assertion “Success Leaves Clues” is totally applicable as we let the data of 100

aggressive growth-focused entrepreneurs start to tell a story. Some anecdotal, some

causation, some correlation -- all with contextual information and value and all interesting and

relevant for benchmarking and developing best-practices integrating dynamic business

valuation with data visualization & other dynamic guidance tools.

c. None of this technology as it is now existed 5+ years ago. Even separate new technology is just

now being applied in a combinative way with open-architecture and open APIs allowing for a

powerful dynamic business synergy and toolkit for entrepreneurs to harness their ambition!

d. Coordinating financial data visualization metrics with ongoing dynamic business valuation

methodology combined with other business strategy resources and all intentionally calibrated

to the desired future target is the epitome of Covey’s “Begin with the end in mind!”

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3. 100 Diverse “eXponential enTREPreneur” Cohort & Peer Challenge a. “A Rising Tide Lifts All Surf Boards!” – Not only will we learn, but we will have intentionality

along with peer support to both pull us and push us to achieve for ourselves and the group.

b. Clarity, intentionality, calibrated feedback, visual dynamic guidance and tracking from the past

as we build our trend to our future – this challenge has great potential to be an X-Factor &

Force Multiplier as a powerful tool and open-architecture peer community.

c. This program is designed to be virtual and low-touch yet with high-access and future peer

connection opportunities for like-minded yet diverse entrepreneurs from across the country.

d. Entrepreneurs are competitive! This is an individual program. We will protect sensitive

information each entrepreneur wants kept private – but there is always an element of

competition to spur on innovation and accelerate learning.

We can’t predict how it will all work out, but we believe with 100 driven entrepreneurs in the

mix, it will be exciting, interesting and we’ll all benefit from the “friendly competition” as we all

strive to maximize our results.

Intended Audience for Unique R&D, Study & Valuation Challenge Opportunity:

Primary: eXponential enTREPreneurs (XTREPs)

Growth oriented, ambitious enTREPreneur leader with a supporting leadership team – typically

having a current revenue between $1-10M with a 3 to 5-year growth and trajectory focus,

ambition and drive for reaching $10 to $100M.

Secondary: “In the Business” XTREP Operators & Leadership Teams

Successful enTREPreneurship at this level can only happen with a strong and aligned leadership

team. This program is not only for the enTREPreneur, but also for their key “in-the-business”

leadership teams actually making it happen.

Additionally: “On the Business” XTREP Key Strategic Advisors

Great enTREPreneurs not only have great “in-the-business” leadership teams, but almost

without exception they also have tremendous high-powered “on-the-business” strategic

advisors, mentors, coaches and consultants. This program is designed to be

Open-Architecture - designed to share as much information as the entrepreneur desires to

share to improve advisory value based on enhanced data, ongoing dynamic business valuation

and other visual dynamic financial guidance.

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Operational Details for 2-Year R&D, Study & Valuation Challenge Program:

1. Time Frame – Comprehensive valuation and initial benchmark begins in 2019 for FY 2018 as the

starting baseline. Eight (8) subsequent quarterly business valuations will be done and delivered

within 30 days following the end of each quarter assuming all requested data & information is

provided. A final valuation with the calibration of the full 2-year results ending period of 2020 – to

be completed Q1 2021.

2. Deliverables: Kahuna Value NaVigator Team – a. Planned/Promised – Planned deliverables are shown in more detail in Appendix A

b. Planned/Not Promised – Because of the

nature of the challenge and the

unknowns at the start, we have several

initiatives and valuable bonuses

planned for adding value and delivering

more than we are contractually obligated

to. Please accept this sharing of our

intent in line with our commitment to

embracing the unknown as an adventure.

c. Not Planned/Promised (Via Law of

Serendipity) – We know without a doubt

that when enTREPreneurs take bold

action, the universe promises to provide

value in unforeseen and unexpected

ways. We don’t know exactly what,

but we know we can count on being

rewarded for our bold commitment!

“Whatever you can do, or dream you can, begin it… Boldness has genius, power and magic in it. Concerning all acts of initiative and creation, there is one elementary truth the ignorance of

which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then providence moves too.” ~ Johann Wolfgang Von Goethe

3. Deliverables: Your Responsibility – “Success is found where opportunity meets personal

responsibility!” Our team can only do our job when you are responsible for what you need to be

responsible for. Open communication, timely responses, reporting, access when needed, and

basic collaboration are all we need to do our part as a catalytic success partner for your journey.

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Nothing is pretty or perfect when it comes to entrepreneurship or any great ambitious endeavor.

We don’t ask for nor do we promise this. We do promise high trust, high respect, high candor,

high communication and a high motivation for making things the best they can for everyone. We

ask for a reciprocal commitment in this collaboration and joint venture!

4. Planned Study Methodology – We’ll develop a valuation starting baseline (FY 2018), work

with you and your leadership team on what you believe is possible for two-year goals ($1M default

target, but certainly NOT limited) as well as a strategic plan with quarterly milestones.

We’ll provide an updated quarterly valuation update along with delta from start, previous quarter

and delta to goal. We’ll also coordinate our dynamic guidance system with your valuation

financials and other KPIs to monitor and track results and progress from quarter to quarter. We

will share your individual results along with the group composite results and aggregated data as

feedback to learn and apply forward in the program.

5. Program Designed to Align with Your Goals & Ability to Share Results & Feedback

with Your Leadership Team & Strategic Advisors – We are not your guru but rather your

scorekeeper with some valuable insights, but we will not replace your strategic advisors. Our goal

is to be a catalyst to help those who you trust to learn and apply magnifying existing relationships.

Everything we learn is valuable for all of us on our individual -- and shared journey!

6. Strict Initial XTREP Challenge – Peer Cohort Limit of 100 – We can continue to add

participants deep into second quarter 2019 as the baseline of the valuation challenge starts with

FY 2018 results. We plan and fully expect 100 total participants. We desire peer quality for results

and for the friendly competition. “Steel Sharpens Steel!” The program is completely individual

and not dependent on others. There is no set minimum, however 100 is maximum for initial group

with registration officially closing at 100 participants.

“A Rising Tide Lifts All Surfboards!”

7. $10K Participation Investment – Includes all services for duration of 2-year program.

Alternative finance option is (4) Four monthly installments of only $2750.

We Are In! Are You Up to the Challenge to Join Us?

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8. 110% Risk Reversal/Guarantee – This program is designed as a peer challenge, study and for

R&D purposes for the aggregate group. Please do NOT join if you have doubts or concerns. IF,

however, after one year (2019 with four quarters of results), you feel like you did not receive the

full value of your investment, your entire initial investment will be returned to you plus an

additional 10% as an added incentive for taking bold enTREPreneurial action in good-faith. Give us

the full year of 2019 and if you don’t feel we have overdelivered on our promise, we will refund

you not just 100% of your money, but 110% of your initial investment in this challenge.

BUSINESS VALUATION FOR ENTREPRENEURS

PROGRAM CONTEXT

Kahuna Business Group, Inc. has more than two decades as an entrepreneurial company serving

entrepreneurs. Kahuna Value NaVigator is an internal business unit focused exclusively on business

valuation discovery, clarity and targeted maximization for growth entrepreneurs.

As we progressed, we discovered a high level of honest ignorance (ourselves included) regarding how

much we didn’t know we didn’t know regarding business valuation.

We discovered a protected industry of overpaid, under-serving, bureaucratic, administrative accounting

valuation professionals who would gladly appraise and value your business for an average of around

$10,000.

No coaching. No strategizing. No game-planning. Only a really expensive static report!

There are a lot of valuation experts, but there are very few resources and legitimate experts who

understand business valuation as a core component of business strategy and planning for entrepreneurs.

For the $1-5M entrepreneur with ambitions of $10-100M, there are pitiful few resources dedicated to

helping entrepreneurs understand and apply business valuation as part of their master strategic planning.

We speak from (a painful) experience when ignorance of business valuation cost us several million dollars

because of what we didn’t know we didn’t know.

And even once we did know, it was too late to do anything about it.

We created Kahuna Value NaVigator to fill our own need and now offer it to provide value to our clients.

Valuation is 100% the Focus & Target—AND—Valuation is 100% Not the Focus & Target!

We Are Focused on the Value of Valuation – Not for the sake of “valuation” alone, but for what

understanding and intentionally improving valuation for a business over time can do -- AND what it

means for EVERYTHING ELSE important in the business over time.

Business Valuation is Improved Through Understanding &

Improving the Core Fundamentals of Your Business

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XTREP CHALLENGE – PROGRAM OVERVIEW

Kahuna’s 100X100M Challenge is a two-year entrepreneur program and challenge to achieve a

documented increase of at least $1 million dollars in business value. It is labeled as a “challenge” because

although it is completely individual to each business, there is the opportunity for collective learning and

synergistic R&D value as a group striving towards a common mission.

The XTREP 100X100M Challenge officially begins in Q1 2019 benchmarking FY 2018 as the starting point.

The program will continue for eight consecutive quarters concluding with final individual results as well as

collective results, lessons learned, tools and resources and other valuable insights to share with all

participants and their key teams and advisors in Q1 2021.

This program is individual. Everything will be customized to and calibrated to each individual business. It

is a high data and high feedback program, designed to be as light touch as each entrepreneur wants it to

be. This is a unique and exciting R&D laboratory for all XTREPs who participate.

In almost all cases, everything any of our participating 100 XTREPs desires to develop and use for their

own specific “Dynamic Guidance” – will be applicable and valuable to all the rest of us.

This program is not designed nor intended to be like other masterminds, high level coaching or high value

advisory programs. Our ambition is “learning, living and sharing this journey of entrepreneurship” with 99

XTREP peers.

We assist XTREPs with an enTREPreneurial perspective with business valuation as part of an ongoing

dynamic business evaluation & improvement process. This challenge is uniquely designed as a catalyst for

clarity, intentionality and high-leverage calibration with your financials. You can also share results with

advisors, coaches and mastermind groups.

XTREP (eXponential enTREPreneur) Cohort Group Initial Two-Year (8 Quarter) Study

A “cohort” is a group of individuals having a statistical factor (such as age or class membership) in

common in a demographic study sharing defining characteristics. Our cohort study is a longitudinal study

working with and data sampling our XTREP cohort initial and every quarter as standard starting selected

period over a selected period – initially 2 years… plus follow-up studies in future.

Kahuna XTREP Program/Challenge –We’re looking to challenge other like-minded XTREPs serious and

committed to participate in the feedback process as we learn, live & share this combination of art, science

and alchemy related to dynamic business valuation for eXponential enTREPreneurs.

We’re NOT Your Guru, Success Coach, Teacher or Mentor

We are a Fellow XTREP – Your enTREPreneurial Peer

Living, Learning & Sharing the Same enTREPreneurial Journey

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Appendix A – XTREP 100 Challenge – Deliverables: Planned & Promised:

WHAT IS PROVIDED & WHAT IS REQUIRED

The Kahuna Value NaVigator Team will work with each enTREPreneur to gather relevant data for an

initial Comprehensive Biz Equity Business Valuation. After data is gathered and analyzed, the KVN Team

will provide the entrepreneur with their full valuation summary plus a customized quickSURF Valuation

Analysis along with other valuation business development tools and resources to maximize valuation

improvement opportunities within 2-year challenge.

Important Note:

Most business valuations are dry statistical exercises of numbers plugged into cold generically applied

formulas for statistical smoke and mirrors to create a business value that will not get anyone in trouble.

Business Valuation is meaningless unless used as a basis to know where you are in relation to a future

desired target with understanding of the Delta (Gap) and what can be done to improve & close the gap.

We are enTREPreneurs serving enTREPreneurs – while formulas &statistical information is important, our

purpose is assisting our entrepreneur clients with greater clarity to understand their current situation to

affect the changes most relevant for architecting and building their desired future Enterprise Valuation.

Kahuna Value NaVigator

Initial “5-Step Comprehensive Baseline Strategic Business Valuation” – $1,495 Standard Value –

Includes:

1. Initial 30 Minute Discovery Calibration Call - Initial application of entrepreneurial S.U.R.F.

Strategy: Survey to really Understand important elements for current valuation – including: Business

history, entrepreneur history, relevant back story, motivations & drivers (both surface-level as well as

deeper – issues behind the issues) future strategic planning, near term tactical priorities, targets and

goals along with other relevant factors or situations relevant to business valuation.

2. Entrepreneur/Leadership Team Questionnaire – Simple & easy, yet insightful survey for the

entrepreneur leader and any relevant drivers in the leadership or management team – Designed for

application insights as well as to uncover possible hidden value drivers or value detractors. This

process is solely at the discretion of the entrepreneur for a broader tapestry of understanding relevant

factors affecting business valuation.

3. Fact-Finder & Documentation Process – Kahuna Support Coordination Team – In addition to the

Discovery Call and Leadership Questionnaire, this team will do the data input – They will coordinate to

request and compile relevant documentation, tax returns and other information for the most

comprehensive valuation. Our team is trained to not only make this painless, but to also make the

process educational where appropriate.

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4. BizEquity Standard Initial Valuation – Initial Business Valuation results based on three basic, industry-

standard, valuation methods. This valuation comes with a 29-page report with information and

insights related to different valuation methodologies as well as understanding the relevant factors

influencing valuation results.

5. Kahuna quickSURF™ Valuation Analysis – Kahuna Value NaVigator Team continues the

Survey/Understand – adding actionable overview. The analysis will include basic benchmarking and

understanding of where value is minimized or lost as well as where value is created. The analysis will

also contain an understanding of how to magnify value, incorporating results and action items into an

ongoing action plan.

Additionally, Kahuna Value NaVigator Team Will Provide

Standard KVN Valuation Strategy Session ($1,495 Additional Value Included)

▲ Kahuna Value Navigator Strategy Session (Including Dynamic Pathfinder Process™) – Once we have

plotted where you are, we can start to build a map to where you want to go. We’ll use valuation as a

metric, because value of the business comes through improvements in the business –i.e.- growth,

profit, cash flow, operational efficiency, and ultimately wealth. -- And –

▲ DRIVE 5 Priority Targeting & Goal Calibration – Our goal is for you to increase your value by at least

$1M within two-year time-frame. We’ll assist you to define targets, build key metrics and track them

with dynamic calibration to help you hit your targets as you focus on growth, profit & cash flow to

maximize your enterprise value as your core strategic asset for building your wealth!

Also -- ALL Below is Provided as Part of Complete 2-Year Program:

Advanced Business Valuation Integrated with Integrated Dynamic Guidance (Additional Included Value Below: $67,219)

▲ Seven (7) Subsequent Full Quarterly Strategic Business Valuations (w/Final Q1 2021)

As well as Seven (7) successive:

o Kahuna Value NaVigator Quarterly Strategy Sessions (Including Dynamic Pathfinder Process™)

o Quarterly DRIVE 5 Priority Targeting & Goal Calibration – Reviewing quarterly for what worked,

what didn’t with targets hit or missed, we’ll also review strategy and tactics moving forward. As

things are dynamic, we’ll refocusing every 90 days assisting recalibrate to DRIVE your goals.

(Same as shown above -- $1,495/Quarter = $10,465 Additional Standard Value)

▲ Kahuna Dynamic Business Valuation & Target Calibration

($670/ mo. & $1,699 setup = $17,779 included value) -- This unique system will keep track of your

valuation and the key performance indicators so that you can always be aware of your goal and

trends. The valuation will be updated quarterly with all KPI’s and targets recalibrated to help you

achieve maximum growth potential.

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▲ Kahuna Dynamic Guidance System (DGS) ($1,499/ mo. & $2,999 set up = $38,975 included value) –

We’ll set up your Dynamic Guidance System – with automatic sync calibrated to your financial data

giving you a living, breathing dashboard to see key metrics driving your value. DGS is your goal setting

& goal calibration tool based on your business aligned with relevant KPIs to your future targets.

▲ Kahuna DRIVE 5 Priority Targeting & Goal Calibration Within DGS -- Our goal is for you to DRIVE at

least $1M in value in two-years – hopefully much more. We’ll define targets, build key metrics and

track them relentlessly to help you hit your targets. Our focus is your growth, profit & cash to

maximize your value and your wealth! Each Quarter we’ll provide a KVN Strategy & Tactical Update

along with a valuation calibration to your specific business objectives.

▲ “If This, Then That” Strategic Analysis & Planning -- As an XTREP – most of your world is decision-

making. Hiring, firing, investing… the decisions can be overwhelming. With our system, we’ll help you

with feedback planning for “If This, Then That” scenarios to simplify decision-making focusing on

your 80/20 and what’s going to move the needle.

Summary Call to Action:

I won’t insult your intelligence. We’ve designed this initial R&D Study & Challenge Experiment to be as

much of a value-heavy and high-touch concierge service to be a complete “No Brainier” if you are the

right kind of entrepreneurial fit.

The traditional marketer’s value stack is loosely summarized below, but it is NOT really about what you

get for your investment.

Total Value Stack = Lots of $$$ Value Designed & Calibrated for You to Improve Enterprise Value of Your Business

by A Million Dollars (or even more) in 2-Years (or even less) – Versus –

One-Time $10K Investment-- Including a 110% Guarantee & Risk Reversal

What will it be worth to you (really) to benchmark your current business valuation and intentionally focus over the next 8 quarters on strategically improving the financial drivers creating value in your business? Yes, a million-dollar (or greater) improvement in value over 2-years equates to less than pennies on the dollar for your initial investment. Even that is NOT the real value for your investment. “Golden Eggs” are great… But you own a finely-tuned super-charged “Golden-Egg Producing Business”.

What’s it really worth to maximize the current & future production of your greatest wealth producing asset?

Visit https://kahunaaccounting.com/xtrep-elite/ to Discover More.

https://kahunaaccounting.com/xtrep-elite/

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Appendix B – Illustration of Dynamic Progress Tracking Calibrated for Two-Year Target

STARTING

Month

Current

Month

Delta

Variance

%

Change

Previous

Month

Delta

Variance

%

Change

4,499,520$ Revenue 5,798,550$ 1,299,030$ 29% 5,624,594$ 173,957$ 3%

2,446,053$ Expenses 2,881,221$ 435,168$ 18% 2,823,597$ 57,624$ 2%

344,590$ Profit 589,723$ 245,133$ 71% 572,031$ 17,692$ 3%

1,561,855$ Payroll 1,921,054$ 359,199$ 23% 1,844,212$ 76,842$ 4%

35% Payroll as % of Revenue 33% -2% -5% 33% 0.34% 1%

64% Payroll as % of TTL Expenses 67% 3% 4% 65% 1.36% 2%

545,122$ Inventory 849,732$ 304,610$ 56% 807,245$ 42,487$ 5%

651,000$ Receivables 565,000$ (86,000)$ -13% 536,750$ 28,250$ 5%

11.63 Quick Ratio 13.47 1.84 16% 13.20 0.27 2%

8.25 Inventory Turnover 6.82 (1.43) -17% 6.97 (0.14) -2%

6.91 Receivables (Conversion) 10.26 3.35 48% 10.48 (0.22) -2%

0.46 Debt to Equity 0.32 (0.14) -30% 0.33 (0.01) -2%

0.40 Cash to Debt 0.61 0.21 54% 0.58 0.03 5%

39 # Employees 48 9 23% 46 2 4%

115,372$ Revenue / Employee 120,803$ 5,431$ 5% 122,274$ (1,470.65) -1%

62,719$ Expenses / Employee 60,025$ (2,694)$ -4% 61,383$ (1,357.10) -2%

8,835.64$ Profit / Employee 12,286$ 3,450$ 39% 12,435$ (149.57) -1%

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Appendix C – Two Example(s) of Customized Dynamic Guidance & Dashboards

Stop Flying Blind in Your Business -- Use Data to Accelerate Growth with Higher Profits

Real-time data (in plain language) built by enTREPreneurs for enTREPreneurs

Our Dynamic Guidance System is a custom-built dashboard calibrated to your growth, profit and cashflow!

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