BUSINESS PLAN

BUSINESS PLANArmada Human Capital

May 3, 2012 V65/2/2012

Armada Human Capital Business Plan, Market Strategy, Organizational Structure and Business Financials

TABLE OF CONTENTSExecutive Summary3Who we are3Our Solution3Revenue Model3Milestones4Financial Summary4The Company5Company Overview5Vision5Mission5Business Philosophy5Management Team6Our Board of Selected Advisors6Proposed Location(s)7Products and Services8Our Business Model8What We Offer9Pricing Model10Target Market11Niche11Market and Industry Overview11Huge Growth Industry12Market Highlights12Global Economy Driving Change12Technological Impact13The Armada Difference13Anticipated Impact in Kenya14Assessment of Anticipated Impact at National Level14Assessment of Anticipated Impact at Individual Level15Armada Value Proposition15Strategy and Implementation16Marketing Plan16Go to Market Strategy18Linear Production Model18Armada Partner Network20Promotion20SWOT Analysis23Company Strengths and Core Competencies23Competition23Competitive Disadvantage24Opportunities24Organizational Design26Structure26Personnel27Preliminary Staff Plan Recommendations28Remuneration of Employees29Financial Plan30Break-even Analysis30Projected Profit and Loss31Projected Cash Flows32Projected Balance Sheet33Sensitivity Analysis34Assumptions34Conclusion35Appendices36

1. EXECUTIVE SUMMARY

1.1 WHO WE ARE

Our vision is to become the worlds leading Human Resource Outsourcing (HRO) service provider. It is our mission to accomplish this by delivering exceptional services and products within our region to become the first market leader domestically and build upon our success to expand into more developed markets by offering a more cost effective solution. The opportunity for Africa as a region to develop both economically and professionally via our successes will also help our brand compete internationally against India and China.1.2 OUR SOLUTIONArmada will offer the full suite of HRO services starting with recruiting process outsourcing (RPO) and adding more services once each service offering stabilizes and is profitable. Our solution provides world class best practice recruitment processing and cost savings for our clients. Clients include large foreign and domestic companies operating throughout the region. This also includes mid-market and small size clients.We offer a low cost and highly effective linear recruiting service, which is able to address the challenges of typical, less effective and costly internal recruiting functions of corporations today. We will be able to do this via the support of our shared service center which handles all of the processes associated with recruiting that can be managed by a back-office which most clients do not have. Future service centers, based in lower labor cost (2nd tier) cities would be able to support the region as we grow and expand. In addition, we would also introduce new revolutionary proprietary online and mobile applications to entice clients and aid in recruiting candidates without access to computers. Sophisticated organizations and their HR leads are looking for ways to manage talent more intelligently through different software that will help them operate more effectively. Our software would address these needs.Today more than ever attracting the right talent to organizations in shifting markets has never been more important, but more than ever, human capital is the only competitive sustainable advantage. We will work with our clients to transform their talent acquisition processes and elevate their talent attractions strategies. We do this so that they are able to provide more strategic business value to their organizations. 1.3 REVENUE MODELBy charging for services on a pay-per-use model, our clients will have an additional cost savings not offered in the developed world. Recruitment services are the most popular Human Resources Business Process Outsourcing (HRBPO) services. Best practices and vendor scalability have been proven in HR over time and enterprises perceive RPO options as being less risky and offering great value. Companies globally are witnessing an attrition rate of an average of 18%, with call centers being as high as 45% and even higher attrition rates in growing sectors like IT, Telco and Biotech. This in effect means that 1/5th of the worlds working population takes a new job every year. Conservatively, the average growth rate of the GDP of countries in East Africa is 4% - indicating that there are 4 new jobs added for every 100 individuals per year. Globally organizations estimate that 20-25% of their hiring happens through search firms. This means that 10% of the entire working population in the world gets a job through a search firm. The trend in East Africa and Africa as a whole is headed there its just a matter of time.Recruitment services are the most popular in HR BPO and are driving the growth of the market. Best practices and vendors scalability have been proven in HR over time, and enterprise perceive RPO options as being less risky and offering good value for money. Positioning Armada from Africa will be a huge surprise to the market and well received.

1.4 MILESTONES

1.5 FINANCIAL SUMMARY

We will focus on growing steadily and growing our team and scope of services to be able to handle the most complex end-to-end processes our clients might need. In order to make this plan successful, we would be looking at an initial capital injection of $250,000. We project a profit in year 1 of $115K, which grows to $5.1M in FY 2016. The projected net profit margins grow from an initial level of 11.5% in FY 2012 to 43% in FY2016.

2. THE COMPANY 2.1 COMPANY OVERVIEW

Armada Human Capital, referred to as Armada Human Capital,is currently headquartered within the EMEA region in Nairobi, Kenya along Museum Hill Drive at Purshotum Place. Additional representative offices are located in the Americas region (203 N. LaSalle in Chicago, Illinois, USA) and in Johannesburg, South Africa (The Fourways area.) Other representative offices are planned for London and Hong Kong. Armada Human Capital is a limited liability company incorporated in North America and Kenya. The core business of Armada Human Capital is Human Resources Outsourcing (HRO). This business plan has been written in response to opportunities that exist in the Human Resources Outsourcing (HRO) sector. The sector includes: Recruiting Processes Outsourcing Payroll Outsourcing Benefits Administration Outsourcing Compensation Outsourcing HR Administration Outsourcing HR Document Management Outsourcing HR Information Systems & Technology Outsourcing HR Management Consulting Staff Leasing Global Mobility Employment Branding Recruitment Advertising

The increasing focus on HR's contribution to the performance of the wider business has led to more emphasis on cost reduction. HRO has grown out of this debate - from re-engineering and cost reduction on the one hand to a potential transformational capacity on the other. HRO is an evolving industry and can be defined as - the purchasing by an organization of ongoing HR services from a third-party provider that it would otherwise normally provide for itself.2.2 VISIONTo be the leading African provider of advanced human capital management solutions!2.3 MISSIONTo harness fresh energy and talent by delivering exceptional, cost effective and timeous solutions to our partners, through our dedicated team of seasoned experts with a passion for effecting business success through advanced human capital engineering.2.4 BUSINESS PHILOSOPHYARMADA HUMAN CAPITAL intends to simplify the design, delivery and implementation of human resource/recruiting support for our clients by reengineering how work is done though a more lean Six Sigma/Agile methodology influenced approach to delivery. By transforming how we work in more efficient and effective ways, will drive down costs; improve speed of execution, and overall quality of production. This will give us a significant advantage in the market, which is looking for constant ways of doing things better, faster, cheaper. By having service center locations based from reasonably stable yet emerging countries we aim to better ensure our price point advantage while developing new skills in the locations we operate from. With exceptional client service and a reputation of doing what we say we are going to do, we will become the Apple of the HRO industry with revolutionary new products and services though at a cost every company can afford. Lastly, with our vision to offer new extremely affordable proprietary software, we also aim to level the playing field for all companies worldwide to participate in global talent acquisition while branding ourselves as the drivers of best practices in the human capital business.2.5 MANAGEMENT TEAMDedicated to advancement of our industry and Armada Human Capital, through our staff, experience and technology able solutions, we bring over 20 years of experience to our Pan African and Global Client Base.Our team represents a dynamic mix of global experience in the Middle East, Africa, Europe and North America.Vivian Ojal (Chief Executive Officer, Founder): A serial entrepreneur, having started and run 5 successful start-ups, Vivian Ojal brings to the table over 10 years of Pan African and North American experience having worked for leading consulting firms in Chicago, the Middle East, East and West Africa. Vivian started out in the recruitment industry in Chicago, Illinois, working at L.E.K Consulting as their recruiting lead in 2002. She moved back to Kenya with a vision of transforming the way businesses attract, acquire and advance talent in Africa.Gregorio Cardenas (President and Chief Operations Officer): Gregorio has 20 years of Human Resources Management experience with a specialty in HRO and recruiting. Cardenas is the former Global Director, Recruiting Center of Excellence at Convergys helping secure the largest HR outsourcing deals in the industry. Creator of LiveRecruiting, a revolutionary recruiting system patent filed 1999. As the former Global Consulting Director at Kenexa, a leading recruiting process-outsourcing firm based in US. Greg was hired by Kenexa to develop a delivery model at a time when Kenexa only had a service center in India and preparing to open one in China. Kenexa is currently listed as one of the top 13 out of 300 RPO providers. Upon moving to Convergys, Greg was able to develop a shared services model that eventually became the core model from which IBM, Accenture, Hewitt, Aon and EDS adopted for their own.A thought leader in the industry with over 10 years emerging markets experience, Mr. Cardenas will oversee the day-to-day operations of the company and guide our leadership team to best ensure our success.Mike McDonnell (Chief Technical Officer): Mike has served in leading roles and time after time has showcased the ability to deliver on large, major HR transformation projects. His in-depth understanding of recruiting technologies, global strategies, social media, and mobile technologies acts as a key additive to the Armada organizational model. With over 20 years of solid experience in software engineering and project management and 16 years in web applications; Mr. McDonnell brings a world of IT knowledge and recruitment best practices to the table.Brian Were (Chief Financial Officer): Brian has over 12 years experience working at Towers Perrin and AON Hewitt in Chicago, IL.OUR BOARD OF SELECTED ADVISORSPeter Nduati (Chairman): Peteris the CEO and founder for Resolution Healthcare. He holds a master's degree in economics and insurance. He is a chartered insurer with over 20 years of experience in the Kenyan Insurance Industry. He is currently involved with his doctorate program focusing in Entrepreneurship in Kenya targeting completion in 2011. Previously, Peter was the CEO of Metropolitan Heath Group, a South African Health insurance group and was Managing Director of AAR Health Services Tanzania. He owns and manages a record label called Pine Creek Records and is the immediate former Director of National squads in the Kenya Rugby football Union. He played rugby for Impala Club in the National League and is the Chairman of the rugby club. Peter is a Mentor with the Greenhorn Mentorship program and is a member of the organizations Board of Advisors. Peter is also involved in AIESEC (an organization for students interested in commerce and business) and is the current chair of the board of Daystar University's local chapter. He won the Kenya Alumni Association in 2002. He was also a shortlisted nominee of the Global alumni of the year in 2007.Kris Senanu (Board Member): Kris is an avid entrepreneur with a keen eye for good talent. Bachelor of Science degree in International Business Administration, Kris joined the Internet Industry in 1996. He has over 10 years of experience in the ISP industry in Kenya. His main areas of responsibility include developing and managing the Sales team, Account management and Client Care departments. He is also responsible for brand recognition as well as new product launches. Kris being on board is an excellent opportunity for Armada to bridge the gap between HR and technology.Robert Ochola (Board Member): Robert has a PhD in Engineering and is currently the Strategy and Innovation Director at Kenya Commercial Bank. He has worked in the Telco and energy industry for Celtel, Zain and Shell Oil. His role and contribution in the Board revolves around strategy and sourcing for funding for expansion.Isaac Fokuo (Board Member): Isaac Fokuo2.6 PROPOSED LOCATION(S)

As we grow, the company locations/ premises will spread out to include the following venues;1. Methodist Ministries Centre Ground Floor (current location). This area proves to be a location that matches our clientele. It is conveniently located between major business zones, namely the Westlands area and the CDB. The environment is pleasant and inviting.2. Methodist Ministries Block C. Upon completion of building and achievement of targets, we will move to a larger office within the premises. It will act as a larger service center to house our team and effectively accommodate clients, candidates and vendors.3. PRODUCTS AND SERVICES3.1 OUR BUSINESS MODEL

The business model is based on the premise that organizations can be persuaded to outsource the most mundane HR tasks to a third party. Armada Human Capital can help clients manage their HR, recruiting, and employee costs, enhance HR services and improve their workforces.Armada Human Capital will offer the full suite of HRO services starting with recruiting process outsourcing and adding more services once each service offering stabilizes and is profitable. Our solution provides world class best practice recruitment processing and cost savings for our clients. Clients include large foreign and domestic companies operating throughout the African region. This also includes middle market and small size clients at local country and city levels.We offer a low cost and highly effective linear recruiting service, which is able to address the challenges of typical, less effective and costly internal recruiting functions of corporations today. We will be able to do this via the support of our shared service center which handles all the processes associated with recruiting that can be managed by a back-office in a lower cost labor market which most clients do not have.Our initial mini service center, based in Nairobi, would be able to support the country and region as we grow and expand. In addition, we would also introduce new revolutionary propriety online and mobile applications to entice clients and aid in recruiting candidates without access to computers. Sophisticated organizations and their HR leads are looking for ways to manage talent more intelligently through different software that will help them operate more effectively. Our software would address these needs and is ideal for other emerging markets within the African continent.Today more than ever, attracting the right talent to organizations in shifting markets has never been more important, but more than ever, human capital is the only competitive sustainable advantage. We will work with our clients to transform their talent acquisition process and elevate their talent attraction and retention strategies. We do this so that they are able to provide more strategic business value to their organizations. Deliver all transactional and administrative HR services and processes and provide a single point of contact and accountability for the client. Develop capabilities that would complement and complete best-in-class HR service components, including deep process expertise Apply new tools and technologies to standardize and improve services, implementing best-practice information and technology cross function to create more streamlined processes and reduce costs Manage the flow of HR transactional information (including information from 3rd party vendors) from a central point, offering the clients managers and employees a single point of contact for comprehensive, integrated and flexible HR services and reporting.

In order to achieve breakthrough results, three fundamental objectives will have to be achieved:

The clients HR managers or leaders would have to partner with Armada Human Capitals managers to reengineer internal processes with an eye towards aligning HR as a true strategic partner in the clients business. Armada Human Capital will have to learn the clients markets including any cultural and regulatory factors associated with foreign operations Armada Human Capital will have to offer sustainable world-class solutions, continuous improvement, value generation, and a client-oriented service approach.

These objectives rely heavily on the expectation that HR professionals would be concerned not only with reducing costs but also with transforming their function. As we expand, we will likely adjust our operations further to reflect the ways in which we can best achieve economies of scale and deliver added savings for our client. We will not impose a set of standard policies that we have found to be superior to our clients, nor will we simply operate the existing client setup. Instead we will take the position that there is no uniform model or approach that will work equally well for all companies. We will be more concerned with identifying areas of potential improvement and understanding the levers that drive improvement in each case. HR administration is a volume business, but it is also a business that requires vendors with competency in HR processes and information technology.The key to success is moving toward relatively standardized HR processes that are state-of-the-art, thus we will need to develop core competencies and excellent administrative practices in areas such as; recruiting, benefits, compensation, payroll, document management/records, learning & development, performance management, HR information systems, workforce planning, etc., and a host of all other HR administrative tasks.We need a core competency in HR administration, web-enabled HR administration, and web-enabled recruitment processing. We need to differentiate ourselves by offering more than companies can afford to have on their own and by creating an integrated, best-in-class technology platform. This clearly requires a well-developed core competency in HR technology and software thus our need to partner with a several software solutions providers like; Meshhire, SAP, PeopleSoft, Oracle, etc.3.2 WHAT WE OFFER

To be the recognized leading service provider of human capital management solutions in Africa initially, our key objective is to efficiently and economically enhance a companys internal HR function for all or a portion of the support, which is currently being provided by the existing companys HR staff or any existing outsourced vendor(s).To do this, we will systematically transition tasks (work) from the company (our client) to us to manage. We will initially target to provide recruiting process outsourcing related support. This may include managing the entire recruiting/hiring process from start to finish; locally, regionally or worldwide. The choice of services we provide to our clients will be agreed on together.This may include but is not limited to:

Strategy Development Manpower planning Job Description Development and Maintenance Job Posting Recruitment Marketing & Advertising Sourcing Screening Interview Scheduling Interviewing Offer Letter Management Background Checks Reference Checks Relocation & Global Mobility Support On-boarding Management & Ad Hoc Reports Candidate Support (Hotline) Applicant Tracking Systems (ATS) Implementation ATS Helpdesk Support Restructuring, Severance & Outplacement Event Management College/University Relations Program Management Employment Branding Recruitment Training Compliance Management Candidate Relationship Management Candidate Travel Management Vendor Management Special Projects Career Site Development Self-service Application & Document Management Resume/CV Parsing Time & Expenses

3.3 PRICING MODEL

Our pricing model is relatively new for this industry. Unlike the majority of our competition that either prices by simply discounting the total cost of a companys HR budget by 20-35 percent, placement fee (for recruiting), or cost per hire we charge on a pay-per-use transactional model. This allows us to charge the client exactly for what they need and nothing they dont. For example, if the client wants to outsource parts of their recruiting process, they may ask us to support them by posting jobs, phone screening candidates, or scheduling interviews. As such we would charge a transactional fee for every job posting, phone screen, and scheduled interview with candidates. Depending on the transaction and the complexity, skill level required, and/or time involved will determine the cost for that particular transaction. At the end of the month, we simply add up the transactions and multiply by the agreed fee for each type of transaction. We invoice the clients monthly and do not require long-term contracts, though we can provide clients a discount based on the term of the contacts as an incentive.This pricing model applies to all aspects of HR. We are not charging clients for anything strategic as we are only tackling the transactional tasks of administering human resources on behalf of our clients. We partner with our sister company, Personnel Resource, when more strategic work or advice to our clients is required. It is not our objective to put companys HR functions out of business, but rather allow for the staff to move from being transaction oriented to providing more value to their companies and thus become more strategic to provide value ad for the companys they represent. To this point, we are a partner to HR and not a threat.Lastly, with our eventual LiveRecruiting applicant tracking system, we will be able to offer this as a marketing tool to help us attract clients. Unlike the expensive, over engineered, non-user-friendly, and slow recruiting systems in the market today ours will be nothing like the world has ever seen. We will give it away initially to any client we provide outsourcing support to and charge those that only want to use the system on a per user and vacancy basis. License fees per user could range from $49-$99 per year and $1-$2 per vacancy posted, thus highly affordable for all companies regardless of size. Our system will also be the most international from day one with more multi-lingual capabilities than any other in the market today.

4. TARGET MARKET

We will offer human resource support services to companies of all sizes. Initially we will start by offering services to local companies located in Nairobi and throughout Kenya. As we stabilize our operational process and develop our growing numbers of staff, we ultimately will increase our coverage area to include all of Africa through satellite support staff and by building our implementation partner network to support regional clients. This will allow us to eventually support global clients worldwide as we leverage our prior growth, success, and best practices to expand service centers in all 4 main regions of the world to then target global Fortune 500 clients. 1. Our target marketa. Our target market are high volume hiring industries such as; customer service centers, retail chains like grocery stores or restaurants, manufacturing, transportation, logistics, banking, insurance, financial services, credit card services, communications, construction, etc. Our clients seek alternative solutions to recruiting the best talent possible for their organizations which are different than traditional corporate recruiters and staffing agencies can offer. As such we offer our target market best practice recruiting solutions as this is exactly Armadas core business.

2. The #1 benefit our service provides to our target marketa. Armada Human Capital provides our clients time efficient and cost effective recruiting services to hire all the best talent required by our clients on time and on budget better than any staffing agency or internal recruiters (recruiting departments) may provide. Armada Human Capital can out-perform our competitors and future clients recruiting efforts by 25% to 50% (time & cost.)

4.1 NICHE

Our niche initially will simply be to be the first real HRO service provider in Nairobi, and eventually all of Kenya with the goal of being the premier provider for Africa. By being the leading provider in our region we will create our niche. At the same time, we will target new clients that are looking for to try something unconventional given the competition has nothing new to offer. Our new linear recruiting process will be something our clients will learn to love.4.2 MARKET AND INDUSTRY OVERVIEW

In Kenya, Armada Human Capital is the first RPO firm to enter the local market thus giving us a leg up on future competition. There are only a handful of self-proclaimed RPO firms throughout all of Africa and none offer comprehensive recruiting services unlike Armada Human Capital. Worldwide, Armada Human Capital RPO is in the best location to compete in the global market against other providers based in India and Philippines, which are currently leading geographies for service center locations.

Armada Human Capital is will be the first RPO service provider to offer the worlds first (and free) mobile ATS (applicant tracking system), which can be used by hiring managers, recruiters, and candidates. Through the use of this global technological recruiting platform, Armada Human Capital will be able to support future clients worldwide while providing both services and integrated technology for an even greater value proposition. An enhanced version of our ATS Armada Recruiter will be provided to all our clients unlike the free version that we envision will support the entire recruiting industry. Our system will give us access to the largest global database of talent than any single other competitor currently has.In lieu of our ATS not available for use, Armada Human Capital has been able to establish a partnership with a PC based ATS that is highly integrated with social media Meshhire. Armada Human Capital will have an exclusive license to market and resell the use of this system to our clients and throughout the entire Pan-African region. No other staffing agency nor RPO service provider based in the African region has a low ATS to offer. Other more expensive ATS systems can only be purchased from abroad, which are less social media enabled. This gives Armada Human Capital the added competitive advantage of offering both recruiting services and recruiting technology solutions.

4.2.1 HUGE GROWTH INDUSTRY

In 2010, in a report published by Everest Group, an industry analysis company noted that, The multi-process Human Resources Outsourcing (HRO) market is expected to regain traction in 2010, moving towards US$3-3.1 billion in annual contract value. In 2011, another report by a separate industry analysis company noted that, The global Human Resource Outsourcing (HRO) market is to reach US$162 billion by 2015, according to a new report by Global Industry Analysts, Inc. In India where Business Process Outsourcing (BPO) leads worldwide, the National Association of Software and Services Companies (NASSCOM) predicts that global BPO industry spend will grow at 6.1 percent between 2009 to 2014. HRO spend which is 43 percent of total BPO spend, will grow at of 4.8 percent during the same period to reach around USD 83.6 billion by 2014.The potential of the HRO market in sub Sahara Africa is big. We estimate that this market size is US $1.21 Billion with about 33% of the industry concentrated in South Africa. Given that there is no player in the Africa regional space there is an opportunity waiting to be exploited given the size of the market.4.2.2 MARKET HIGHLIGHTS

The worldwide HR outsourcing market is projected to grow from $21.7 billion in 2000 to over $150 billion in 2015. (The Gartner Group) Comprehensive HR outsourcing is considered to be the fastest growing segment of the projected (2008) $146billion US BPO market. The current HRO industry is dominated by giants like Hewitt, IBM and Accenture; however, there are significant newcomers both large and small. Examples of these companies range from Kenexa to SourceRight. HR outsourcing is estimated to generate savings of over 30 to 40 percent for clients. The HRO suppliers are winning larger and longer contracts that are now running seven to ten years instead of five to seven years. 85% of US enterprises will outsource at least one component of HR functions. (Gartner Dataquest) Offshore outsourcing is a trend driving HRO. Most of the current offshore outsourcing is concentrated around processing services that involve manual operations with little added value, such as generation of employment contracts. Leading regions: India, Philippines, China, and South America. Reasons cited for HR outsourcing: cost effectiveness, reduced administrative costs, capitalizing on technological advances/expertise, improved client service, redirecting HR focus toward strategy/planning, focus on core business, reduced corporate overhead, provision of "seamless" delivery of services, and insufficient staff. No supplier has devised a standard way of providing HRO around the world. Suppliers need to evolve new non-transactional SLAs that measure more strategic value. Manual process workers are now being required to demonstrate advanced expertise. Fragmentation regionalized industry with over 1,000 providers The number of HRO providers in the 2005 Resource Guide is 1,200. There are currently two tiers of HRO providers: tier 1: enterprise-level, end-to-end HR BPOs; and tier 2: niche players. HRO business is generally associated with long-term contracts, predictable revenue streams, and high switching costs for clients. These characteristics create a favorable environment for M&A. HR outsourcing services generally fall into four categories: PEOs, BPOs, service providers, and e-services. Some HRO providers successfully up-sell higher value services to clients and further reduce the burden on in-house HR departments. Examples of these value added services include core HR tasks (e.g. training and recruitment) in addition to traditional activities such as payroll, compensation, workforce management, and benefits administration. Most client interest in HRO is seen from those sectors of the economy that are experiencing the greatest margin pressure: telecommunications firms, retail companies, and government organizations.

4.2.3 GLOBAL ECONOMY DRIVING CHANGE

What is driving this immense growth is simply the instability of the global labor market due to prolonged financial crisis and possible second dip recession phenomena. The market conditions of today are influencing companies to outsource human resources more than ever before. Recruiting can be done on an as needed basis without fixed cost of recruiters anymore, staff leasing is a less risky way of hiring staff giving the instability of the global economy, outsourcing payroll can be done through a 3rd party once or a few times per month without the need of dedicated payroll staff, benefits administration can be managed much the same way, and compensation analysis can be likewise paid for on an as needed basis. Now is a great time to be in this extremely high growth industry that is poised for impressive returns worldwide.In the short term, companies are demanding not only multi-process HR support services but single-process services are on the rise. To this point we plan to offer the market an assortment of services to meet these trends. Long-term we see the need for the industry to look for more low cost labor markets to base shared service centers from which back-office support can be facilitated more cost effectively. In this regard, we see that Africa has the most to benefit than any other region in the world due to the number of countries with low costs of living for various reasons. In this industry the winner of the future global market will be the first to succeed in developing the right talent in the lowest cost labor market where no other competitor can beat on price and quality. By being based in Africa with representative sales offices in cities like Chicago, London, Berlin, Hong Kong, Mexico City, Dubai, Rio de Janeiro, Moscow, Mumbai, Johannesburg, Paris, and Tokyo, we will be able to offer services to companies headquartered throughout the world. Combined with our back office service centers based in the strategic emerging countries like; Kenya, Columbia, Mongolia, Vietnam, Costa Rica, South Sudan, Ukraine, Rwanda, etc., we will be able to provide sufficient coverage for all our clients.4.2.4 TECHNOLOGY IMPACT

Since the first deployment of the first global recruiting system by Hewlett Packard in 2001, the cost of implementing such systems has skyrocketed. Now nearly half of the Fortune 100 companies are using Meshhire, the leading applicant tracking system in the market. These systems were created before Web 2.0 and companies like Facebook and LinkedIn existed. These new social media channels from which recruiting now seen as the next great resource for sourcing talent is fundamentally changing the way people will find jobs in the future. As such, Armada has been designing a new recruiting system that not only integrates the network building and content distribution power of social media but the increase use of hand-held devices like mobile phones and tablet PCs. We plan to introduce a whole new system based on the trending technologies of the future and be the first to dominate this new space. Our new applicant tracking system, code named LiveRecruiting will transform the entire recruiting industry. It is our aim to move the PC driven recruiting process away from the desktop and onto mobile devices that will give recruiters and companies an advantage to engage worldwide talent 24/7. Unlike the traditional PC based recruiting applicant tracking system companies that exist today, we will offer RPO services they dont offer. In addition, we can give the use of our system away for free in exchange for the back office service we provide them. No more expensive PC based recruiting systems are needed in the future and we will be the company the gets the credit for changing the rules. 4.3 THE ARMADA DIFFERENCE

We recruit better, faster and cheaper because thats the only reason you should outsource your recruiting to us!Armada Human Capital is a full service human capital management services firm. As such we provide broad HR support to our clients. Thus the first and foremost difference is that Armada Human Capital and unlike a typical staffing agency that primarily focuses on just provided recruiting services to clients Armada Human Capital on the other hand is provided comprehensive HR services of which recruiting services is only one line of services we offer. That being said of all the HR services Armada Human Capital will offer, it is projected that our recruiting services practice will be the most lucrative and largest source of revenue. All other services Armada Human Capital offers combined excluding recruiting services (which we will refer to as practices) will amount to about 20-40% of the revenue. Thus we can approximate that 70% of Armada Human Capitals revenues will come via the Recruiting Practice which on its own is commonly referred to in the buyers market as RPO.When we compare the differences between Armada Human Capital RPO services vs. traditional staffing agency services, there are several big distinctions between the two business models. I will prioritize the main differences from the perspective of the client in terms of perceived value:1. Staffing agencies provide recruiting services for customers that need assistance in filling either a high-level or hard to find labor resource such as an Executive or Rocket Scientist. As such the client outsources recruiting of just that role. The primary purpose of engaging a staffing agency in this case is NOT to reduce the cost to fill the role. The client has outsourced a job to be filled.RPO companies provide recruiting services for customers that need assistance in filling multiple job vacancies regardless of level or difficulty to fill such as either a CEO or administrative assistant. However in most cases, clients that engage RPO companies do so to eliminate all or part of their internal recruiters and recruiting function and thus look for a long-term engagement over several months or years to provide a part or all of the recruiting services needed by the client. The client determines what percentage of their vacancies to outsource for recruiting by the RPO vendor. In some cases this may mean that the RPO vendor services the high volume vacancies that are lower level and easier to fill and in this example the client may engage a separate recruiting vendor like a staffing agency to fill high level or hard to fill positions as needed. As one can see, in this example RPO companies provide volume recruiting services to fill multiple vacancies and at times lower levels that staffing agencies. The purpose of engaging an RPO service provider is to POSITIVELY reduce cost to fill, shorten the time to fill, and/or augment a clients recruiting function in a more significant way. The client has outsourced all or part of their vacancies INCLUDING the recruiting process given the RPO service provider is managing most of the recruiting effort.2. Staffing agencies typically do not have large numbers of recruiting staff. In some cases that account managers are also engaged in the recruiting process of sourcing talent to help fill the vacancy they are working on behalf of their client. Recruiting is done full-life-cycle. It is possible however that the staffing agency may have account managers separate from recruiters. In this case the recruiter and/or sourcer will work to identify talent to help fill the vacancy. Staffing agencies typically have all their staff working from one location prime real estate in larger cities. This is due to the fact they invoice large amounts and often interview high level talentthus their location and image needs are different.RPO companies are able to more efficiently identify talent for their clients due to the nature of having a much larger number of employees unlike a staffing agency. Again, the RPO service provider is not going after clients that need help with a vacancy here and there, but rather clients that have many vacancies that need filling to the RPO service provider. As such the RPO service provider can more quickly fill the vacancies due to having recruiting teams to identify talent by sourcing and administering the process. Armada can easily compete with staffing agencies operating in the local market as we can simply out-produce them when it comes to delivery and results. Filling a vacancy faster reduces the cost-to-fill to both parties of the contract and is an advantage. In this regard, Armada Human Capital can expect to reduce the cost of recruiting to staffing agency clients by 50% given Armadas recruiting machine getting the job done faster. That being said, it is not our target audience to pursue clients that only have 1 vacancy to fill but rather can be viewed as a revenue segment via Armada Human Capitals recruiting practice. Profitability is also increased for Armada Human Capital given the back-office can be located in a lower cost city and labor market in either 2nd tier or 3rd tier offices. Only account managers have to be located big cities near clients and can work virtual, reducing the cost of 2nd tier office space in the city. Sales offices do not need to be in 1st tier offices as clients expect and understand the need to keep our cost down to save them money.4.4 ANTICIPATED IMPACT ON KENYA

Kenya as a nation has evolved tremendously in the last 9 years. While perennial problems such as reliance on weather patterns, tribalism and corruption still exist, something is consciously being done about it.Below is a highlight of the areas Kenya is improving on:1. Tele communication :It is estimated that more than 10 million Kenyas have access to the internet (About 85% of these people is through their mobile phone)2. The road network is being improved3. Innovation in the mobile telephony space (Mpesa)4. Good macro-economic management (With the exception of Half 2 of 2011)

Despite the above strides an age old problem persists and this is unemployment.The estimated labor force of Kenya is 17.9 million. Given an estimated unemployment rate of 40% then it means that 7 million Kenyans are unemployed. Most of the unemployed are young people between the ages of +18 - 35 years.4.4.1 ASSESSMENT OF ANTICIPATED IMPACT AT NATIONAL LEVEL

This section shall assess the expected impact of the financial mechanism in relation to the overall objectives of economic and social development and strengthening of bilateral cooperation.

AREA OF IMPACTEXPECTED IMPACT

Human Capital Capacity Building for SMEs SMEs will have access to a flexible recruitment system (They will only pay for what they need) SMEs have a one stop shop for human capital management requirements

Access to rural and marginalized communities As the system is available through the mobile phone employment opportunities can be accessed by anyone with a mobile phone. Not all opportunities reach these groups of people.

Enhance the profile of Kenya as a regional outsourcing hub The back office operations for Armada Human Capital will be located in Kenya. Majority of jobs sourced will be fulfilled through the Kenya based shared service centre.

Second tier cities We are looking at setting up service centers in second tier cities to complement our cost efficient operating model. Cities such as Kisumu, Eldoret, Nyeri will benefit. This is expected in phase two of the company growth agenda.

Increased employment opportunities There will be increased employment opportunities especially in the second tier cities where the service centers will be based.

Industry growth Armada Human Capital will enhance the business outsourcing industry in Kenya and this will inevitably attract more players in this space.

Universities and University students Armada Human Capital website and live recruit will offer universities and students a platform to interact with industry players.

4.4.2 ASSESSMENT OF ANTICIPATED IMPACT AT INDIVDIUAL LEVEL

Access to an interactive platform for job seekers and employers. Job seekers will have an online platform to interact with individuals who are looking for jobs and potential employers. Better access to information. This will increase the likelihood of an individual getting employment as they will now have access to more job opportunities Better prepared: By interacting with other job seekers and potential employees its envisaged that individuals will become more self aware in terms of what roles they are best suited for and therefore prepare themselves towards these roles. Ability to track application status from the mobile phone. This is a cheap way to access the status of a job application.

4.5 ARMADA VALUE PROPOSITION

Our value proposition is a combination of cost savings, time reduction, and improved quality. Specifically to recruiting is it all about reducing the cost-per-hire and reducing the time-to-fill, which also happens to be 2 of the top 3 recruiting metrics most commonly benchmarked. In addition to this, we also improve the candidate experience. Combined I have referenced the key points of our unique value proposition below. This is what also distinguishes us different than other RPO service providers worldwide.

5. STRATEGY AND IMPLEMENTATIONIt is Armada Human Capitals goal to become the recognized, leading HRO service provider worldwide. To accomplish this we aim to start out within Africa and expand globally building upon our proven successes. To this point, it is our objective to meet the following milestones based on a reasonable timeline to get there.5.1 MARKETING PLAN

Start-up Phase Objectives (2012 Year 1) Hire and train core sales, service delivery, client support and operational administration staff. Validate future state processes. Commence work on the following contracts: Nokia, Amadeus, and IBM. Increase client requisition load to 150 vacancies (per month) by end of 2nd quarter 2012. Engage several software design and development firms to submit RFPs and build LiveRecruiting our new revolutionary recruiting system based on a higher degree of mobile phone/handheld device compatibility, social media integration, CRM, and leader in the most multilingual capabilities for better global usability to level the playing field for labor and recruiters worldwide. Launch www.tarmackers.com website to enhance brand awareness and provide career development information to the public. Finalize brand strategy for marketing and employment purposes. Establish partner network throughout Africa and target every growth country in the region. Form partnership with Meshhire to become implementation partner of choice in Africa starting with Kenya. It is our plan to implement their technology in the interim while developing our own recruiting system. We envision having the need to continue to partner with Meshhire even after we have our own system available to market as an alternative for our clients. Secure next series A round of funding to achieve next phase objectives. Launch www.armadahumancapital.com and implement SEO & social network strategy to market online. Hire Sales Manager for Kenya. Target revenues of $500,000 by end of 2ndquarter 2012. Launch LiveRecruiting alpha version and transition 50% of clients on it by end of year. Allow open market in Africa to exclusively utilize the system without charge through beta launch. Target beta launch Dec. 21, 2012. Finalize rental agreement for mini service center launch by July 2012.

Phase 1 is summarized below in table format.ObjectiveDeliverableTimeline

Hire and Train: Core Sales Team Service Delivery staff Client support staff May 2staff by Dec 10 Staff Feb 5 staff by Dec 12 Staff April 2 staff, by Dec 6 StaffOngoing

Validate future state processesApproved Standard Operating ProcessesFebruary 2012

Achieve client requisition load to 150 vacancies per monthTarget US$ 500,000 revenue by end of 2012 Have at least 10 sales staff Sales staff productivity to be at least 15 per month Hire sales directors Commence work on Nokia, Amadeus and IBM contracts Form partnership with Meshhire to become implementation partner of choice in AfricaDec 2012

January 2012 (Achieved)

February 2012 (Achieved)

Live recruit role out Obtain RFPs for development Hire Project Manager User Acceptance Testing of system Clients transitioned to system Launch Beta versionFebruary 2012

March 2012August to Sept 2012

November 2012

Dec 2012

Brand strategy Launch Tarmackers website Establish partner networks across Africa Launch Armada Human Capital websiteJune 2012Ongoing

February 2012 (Achieved)

Set up a Mini service centre Identify location Agree on lease terms Launch rural service centreJune 2012July 2012August 2012

Source for funding for phase 2 growth Develop phase 2 business plan Identify areas of investment Obtain board approval to progressJan 2013

Jan 2013

Dec 2013

Ramp-up Phase Objectives (2013 Year 2) Gain majority (51% or more) market share of the Recruiting Processes Outsourcing (RPO) industry in Africa starting in Kenya. Estimated market value for sub Saharan Africa is US$ 1.21 Billion. Estimated value of the East Africa Market is US$ 86 Million. Achieve four urban service centers. Expand scope of services offered and geography supported in other countries within EMEA. Increase revenues to $3 million by end of 2013. Launch LiveRecruiting2.0 globally during 1st half of 2013 and overtake current leading ATS vendors by having the largest client base. Allow qualifying small businesses worldwide to use the system for free. Charge medium to large size companies access to the system on a pay-per-use model. Expand service center operations beyond Kenya in Asia Pacific, Latin America, and/or non-EU Europe pending on initial business development in support of where our first clients will need services to be provided from. Alternative locations in Africa may include South Sudan and/ or Rwanda. Expand sales presence in Europe via the launch of our fourth representative office in London. Demystify RPO through client awareness programs, as such, market www.tarmackers.com internationally.

Global Domination Phase Objectives (2014-2016, Years 3-5) Increase sales volumes to $300 million in 2016 or 10% of market size as determined by the Everest Group. Launch worldwide sales offices in the top 50 most promising cities for business. Open multiple regional services centers in each of the 4 major regions of the world. Support 80% or greater of the worlds most common languages. Expand scope of initial LiveRecruiting ATS to a full-suite human capital management solution. Out-perform the current major recruiting systems to be the most popular. Integrate our future HRIS system SAP and PeopleSoft. Improve productivity by 10% every year through use of technology and other cost reduction measures to increase profitability. Penetrate new RPO markets by launching new services worldwide as our global client portfolio increases. Become the recognized HRO service provider by the industry analysts. Implement new programs and services to help impacted client employees search for new jobs. Leverage our proprietary technology to aid in this endeavor. Conduct IPO to generate the resources to capture the majority of the market in the next 6 years.

5.2 GO TO MARKET STRATEGY

Initial clients of Armada Human Capital will be offered services, which are new and more cost effective for them than what traditional staffing agencies can offer. Armadas service center (to be established) will support all back office processes, which can be managed by the operational team. In parallel, design and development work will begin on our own proprietary recruiting system to be developed by an online applications service provider and future strategic partner of Armada Human Capital. We will support the users of the system beyond level 1 support and provide upgrades as required for future version releases. By offering this low cost system, we intend to entice early adopters by offering it free in exchange for recruiting process outsourcing services. Over time, the system will be developed to address the functional requirements of HR such as payroll, benefits, compensation, and self-service administration as Armada Human Capital brings new service offerings online for our clients. Through our partnership, we will be able to create a slick and highly professional brand image and website to initially launch our online presence.We will target all international companies operating in Africa as a local service provider that knows how to best support their human capital needs in the region. Additionally we will focus on large domestic companies that have no systems, expertise, or best practice in place to manage the process like we can offer. Small and medium sized clients will be targeted to quickly build a client portfolio to leverage should we need to seek additional investment to aid in supporting our fast growth.In addition to all this, we will provide our technology free for qualifying businesses that are small to medium size to aid in penetrating the local market by powering their career sites. This aligns with another objective of ours, which is to level the playing field for more companies to leverage technology and adopt best practices to help the region develop faster and be competitive in the global market. 5.3 LINEAR PRODUCTION MODEL

Armada Human Capital will implement a new way of delivering services to clients via our proprietary linear model. This model was developed by Gregorio Cardenas-Vazquez the companys President and COO. Over the course of his 20 year career in managing HR both internally and externally for a variety of companies throughout the world, Greg had pushed the envelope constantly in winning the war on talent. Our new approach will not only give us the affordability to service more clients with less internal cost, but we will also be able to out-produce our competition and any clients capabilities. This is one of our major operational advantages.

The linear model applied to recruiting will work like this:

1. One back-office recruiting assistant will post the job vacancies to source talent for our clients at a variety of job boards, blogs, forums, social networks, etc. This is a very time consuming task, which we aim to automate overtime and simplify. This will allow us to cast the widest net possible. Candidates will be provided with a link to apply to the vacancy. The online application will e-Screen all the candidates that apply to see if they qualify. 2. Another back-office recruiting assistant will respond to the incoming traffic that is generated by the postings. This could range from email to chat or even by phone. This is required as many candidates simply do not follow process or may have questions about the job, company, or process prior to applying. Though we eventually will require candidates to follow the process as per the posting, we will offer support in this regard until an FAQ link can be provided to address most of the reasons why candidates inquire.3. In addition to the previous 2 recruiting assistants, another will focus on reviewing the applications via the e-Screen reports to determine which ones to schedule for further phone screening or possible face-to-face interviews. Depending on the agreed process with the client, we may even schedule the interviews with the candidates and the hiring managers of our clients to expedite the process of filling the vacancies.4. The last recruiting assistant in the process is the one that actually does the phone screens or face-to-face interviews and does the final short-listing to determine which candidates get presented to our clients for consideration. The candidates are also instructed as to what they can expect going forward from us, and our clients.5. Finally, to support this team and our clients needs to find passive candidates, we will have an entire sourcing team that is supplementing the candidate flow, which ultimately is administered by the recruiting process the recruiting assistants are driving. This allows for targeted talent sourcing to ensure that the right mix of candidates is considered for interviews and hiring by our clients. Unlike most recruiters worldwide that do not operate like we do, we are able to do more productivity given our model, which eliminates anyone on our team having to work in an inefficient full-life-cycle capacity. Given our clients are looking for something different and something they cant so easily implement on their own we offer a better method.5.4 ARMADA PARTNER NETWORK

The Armada Partner Network, is a large network of like service providers from the industry that have been sourced to strategically collaborate with us in implementing, selling, servicing, or developing new ideas to provide our clients. Initially as we grow out from Kenya and expand our initial footprint throughout Africa, we will do so by working in partnership with other HRO/RPO service providers, staff agencies, payroll service providers, independent contractors, recruiting firms, and other strategic partners. This will help us to secure larger contracts with our continental clients that require support throughout Africa. Additionally, we will replicate this model of "partner building" in countries and regions outside Africa as we expand into Europe, The Middle East, Asia, and the Americas. The concept is not new and currently a practice which is utilized by the largest of global HRO/RPO service providers today as no one service provider has the internal capability and infrastructure to service all their clients worldwide. In this regard, Armada Human Capital will be no different. Overtime, we will invest internally to support additional representative offices and service centers based on the workload and revenue generation, which can be to our advantage by us localizing ourselves in various strategic parts the world. 5.5 PROMOTION

1. Graphic Identity Package. A graphic identity system goes beyond logo and stationery to give a consistent, professional appearance for all publications, designs, signage and other printed materials used by the organization. This consistency helps create a "brand" image for the company and allow instant recognition by clients, prospects and other key audiences. A professional logo, stationery and business cards give the business a distinctive, established look that inspires confidence in potential clients and provides a sense of familiarity. The essentials will include;

Business Cards, Letterheads, Envelopes, Brochures and Annual Reports, consisting of multiple pages of text and images, usually in color. We will also provide digitized Company Profile (CD-ROM) to be presented to potential clients. We must ensure to list the company website addresses and details on any handouts we create. Each employee must learn to drop a business card in every letter or hard copy document that they send out. This should be followed up by an email or online e-newsletter. Office branding on the company premises and property i.e. pull-ups, calendars, name tags, stationary, coffee mugs etc.

Brochure Cover

Business Cards

2. Internet Website. Today this is not an option but a necessity. We want to be able to direct people to our website to learn more about our business and our services both as clients and candidates. For this to be possible we need them to find us online.

Each employee requires an email address that says "myname@armadahumancapital.com" complete with links to all other company web links. In accordance to global business trends we will be required to rebrand all online business profiles/ pages up on LinkedIn, Facebook, and Twitter. Our existing followers must be notified of the change in good time prior to the switch over. We will also set up accounts on other social sites that will further increase our brand visibility. This will include putting videos of our services on YouTubeand other video-sharing and slide-sharing sites. Setting up an external company blog is a cheap and efficient way of monitoring client feedback as well as a means of increasing visibility; there will be an Armada Blog as well as the Tarmackers site that will present free and downloadable white papers. The business profile will include a good description, keywords and a link to your website. In our pursuit of online domination we will look for groups or conversations that talk about our type of services and participate in the conversations. This will involve actively following and participation of local and regional and global online business communities. Search Engine Optimization will be required to generate high search engine rankings for all our existing sites. We will also send out sales letters to everyone in our existing database (Salesforce) as well as those we think might be able to use our services. We will also set up a free listing for in search engine local directories. These includes; Google.com/local/; Bing.com/local/; and listings.local.yahoo.com/. It will include the website links and business description.

Tarmackers Website:

Job Site:

3. Public Relations. PR is a great way to get people in the marketplace to learn our business exists. Articles in local newspapers, magazines, and even national industry publications are very cost-effective ways to get the word out;

Writing regular articles that demonstrate our expertise in our field. We can create numerous articles that will be sent out to noncompeting newspapers, magazines, and websites in the field of RPO/ Recruiting that accept submissions from experts. Publications include; KIM Magazine, Business Daily, among others. Promote the business on a talk show. Local radio station or TV stations may have programs that are looking for guests as a great low-cost way to promote the business; we should create relations with the local stations and offer to introduce our unique business model. Business-related programs are ideal. Programs such as The Breakfast Show are popular; we may be able to appear as a guest expert. We should be proactive and make the first move. We will draft proposals clearly worked out before that have the parameters of the appearance, such as details about plugs, are clear beforehand. Promote the business by giving a seminar or presentation. This can be done in a variety of ways; attending networking events and signing up as presenters, drafting bids to be key speakers in targeted events, accepting invitations from various institutions such as from Universities, mentorship programs and other similar events.

4. Paid Advertising. As new technologies and lifestyle trends develop, new advertising and promotional methods will need to be assessed and compared to with traditional available methods as to which is more or less cost-effective for our given purposes. Internet advertising is arguably now more popular than radio advertising - the importance of websites and internet listings are very significant now for small local businesses just as much as larger corporations. The growth of our online presence will be aided by paid online ads such as Facebook, Google ads among others. This does not however mean that we will ignore other forms of mass media advertising. We will be required to scrutinize the choices we make for our advertising campaigns based on need, target audience and ROI.

6. SWOT ANALYSIS

6.1 COMPANY STRENGTHS & CORE COMPETENCIES

A professional, forward-thinking leadership team. We understand our market and have the deep background in this industry. We know the direction of where things are going for human resources and know how to get there. Our founders are experts not only in our domain but in the geography we will launch from. Having previously started successful companies, implemented the first global recruiting system, managed global HR operations for some of the worlds largest companies, personally worked in all 4 regions of the world, developed the first global HRO shared services delivery model, helped sell the largest HRO deals for in the business, networked in multiple industries, and recognized subject matter experts our founders, Vivian Ojal and Gregorio Cardenas-Vazquez, are our key asset for success. An unmatched operational model. Simply put, we plan to operate from lower labor cost geographies where sometimes more conservative countries like the US and UK would not risk going. That being said, we do not intend to operate from any country that has existing imposed sanctions by the United Nations for geo-political reasons. An efficient and flexible process. Unlike other competitors that basically lift-and-shift work from their clients to their back-office service centers we take a different approach. We transition the work to our linear process which has been designed to generate the most productivity for the least amount of money while generating the greatest quality in return. At Armada we understand our clients are looking to us to provide them a solution they havent already tried themselves and in most cases a solution they dont know how to implement or can even do it. To this point, we go and we do where they cant. Live-Recruiting platform. Our future technology has been based on the accumulative experience and forethought of Gregorio Cardenas-Vazquez, one of our founders. LiveRecruiting will radically transform this industry and fundamentally change the way people get jobs in the future. We are not just creating another recruiting systemwe are re-inventing it. By securing our process with patents we also hope to hold onto our competitive advantage for as long as we can. We are also already looking at development of the next generation killer recruiting app which is at least 10 years ahead of the completion code names CAWA. A client centric approach. We will aim to understand all our clients needs. We will achieve this by deepening the relationship we have with our clients to become there trusted HR partner. Ability to scale the business across geographies. The business model can be scaled across geographies. The live recruit platform can interface with popular social websites and has potential to generate spin off benefits. Applicant Tracking System. The functionality of our Applicant Tracking System via web browser and mobile phones/devices that saves time and money

Unlike other competitors and the early HRO service providers when the industry started less than 10 years ago, we dont intend to repeat their same mistakes. On the contrary, we will be known as the service provider that delivers. Our brand and reputation will be synonymous with fast, effective, and affordable. While other companies in our industry like to over promise and under deliver, we will stand apart from them as the brand that has what it takes to make it happen.6.1. COMPETITION

Few local HRO service providers exist in South Africa, Nigeria and Kenya, yet most operate on a city or country basis. In addition, most competitors offer a very limited service offering which is not consistent with industry standards due to local interpretations of what HR outsourcing is. As such, we offer to align our service offering with traditional HRO service providers operating in more developed regions and as defined by worldwide industry associations.Current competition comes from local and foreign-service providers that offer partial services and not holistic. We do not wish to operate like staffing agencies that offer traditional headhunting services or contract recruiters for an occasional placement here and there, but rather we intend to solicit clients to outsource all their transactional recruiting efforts to us, which is in line with HRO. Future competition will come from local copycat service providers that will want to replicate our model and foreign HRO firms that see the potential of the African market as it continues to grow. Thus we aim to get a head start on anticipated competition by dominating and capturing the virgin market now while it exists. Armada Human Capital will become a target of acquisition by foreign HRO service providers that seek to quickly buy into the market though it is not our ambition to sell out. Our competitive advantage is we will establish a very lean operational model based on the subject matter expertise of HRO industry leaders that see the potential of the African market and know all the mistakes we can avoid to reduce risks and offer a better solution when we expand internationally. Our future technology services offering will also be a key advantage over not only the local market but global market as well. Many systems available today from the developed world are simply too expensive, user unfriendly and complicated to use due to over engineering. We intend to offer a simple, easy to implement, inexpensive solution that we can offer our clients in addition to the services we offer. Many of the largest HRO service providers have to partner with third party technology solution providers as they do not offer an integrated solution like we intend to do. People, process, technology: an integrated solution from the developing world for the developed world (reverse engineering) that is our advantage. Leading HRO service providers will not be able to quickly turn their operational models around to align with our more optimized and efficient formula for delivery.6.2 COMPETITIVE DISADVANTAGE

Currently our disadvantage is access to sufficient funding to grow our business and take it to the next level. Though we have the resources to fund our start-up phase through sales generation and internal investment, we would be able to grow much faster and expand our global footprint throughout the world quicker. We have already proven that we can land big international clients such as Nokia last month since the Armada Human Capital established its business license. We aim now to leverage this momentum to land additional big clients while going after local smaller clients in support of building out our service center and developing staff. However, additional funding to market ourselves and attract other professionals from the industry that can aid in our sales efforts would be ideal to accelerate and better ensure our positive growth.6.3 OPPORTUNITIES

Recruitment services are the most popular in HRO and are driving the growth of the market. Best practices and vendor scalability have been proven in HR over time, and enterprises perceive RPO options as being less risky and offering good value for money. By 2008, the HRBPO industry was an $80B market, with RPO accounting for nearly 38% of that.Nearly 6 years ago, one of the leading RPO providers had a list of 300 RFPs from 300 of the fortune 500 companies, wanting to outsource HR. These numbers are picking up again, and will be even stronger than before as corporations need to run leaner operations like never before. Positioning Armada from Africa will be a huge surprise to the market and well received. Companies globally are witnessing an attrition rate averaging 18%, with call centers being as high as 45% and even higher attrition rates in growing sectors like IT, Telco and Biotech. This in effect means that 1/5th of the worlds working population takes a new job every year. Conservatively, the average growth rate of GDP of countries worldwide is 4% - indicating that there are 4 new jobs added for every 100 individuals per year. Globally organizations estimate that 20-25% of their hiring happens through search firms. This means that 10% of the entire working population in the world gets a job through a search firm and also confirms the companies cannot do it alone without external support.

HRO and RPO represent the most radical change in how HR services are delivered. It is also the one that potentially can yield the greatest gains for a company. More than any of the other alternatives, when effectively executed, it can free up the HR organization to be a valuable business partner vs. being viewed as just a cost center. Internal corporate HR can outsource expertise in HR administration that can be provided by an HRO service provider that has HR administration as its core competency. When leaders worry about employees as if they are clients and clients as if they are employees, both clients and employees are more engaged and committed. When HR practices are used to align both employees and clients, both employee and client share grows.Although transactional tasks are important, these tasks add limited value to the future success of an organization. HR functions are expected to utilize alternatives when possible, off-loading e transactional tasks that characterized HR work in previous decades and on-loading strategic initiatives are now required. It is a method for an HR department to transform itself into a unit that adds significant strategic value to its organization. It should provide integrated HR processes and provide data that helps HR become a strategic partner to better support the bottom line.Human resources (HR) departments are at an important crossroad. Large-scale transformation of the HR function, is not only desirable, it is necessary. The traditional transactional work of HR is rapidly becoming a commodity and in several companies, there are significant cost savings to be realized by treating it in this manner. Theres a growing demand for expertise regarding the deployment and management of human capital and organizational capability.To respond effectively to the above demands the HR function must simultaneously create transaction efficiencies and transformational changes. The opportunities are undoubtedly immense with the global market growing at 14% per annum.Analysts such as Bernstein and Everest Consulting have stated that HRO is in the cradle of opportunity and appears to be the best among various BPO opportunities for growthConverting HR management into a strategic business partner has become a more crucial management initiative for most companies. However, the majority of HR departments continue to spend up to 80% of their time on routine administrative activities such as payroll and employee benefits administration, personnel administration, discipline and grievance handling as well as compliance reporting. These administrative activities become all-consuming and service delivery to line management is extremely fragmented. Studies show that in North America in 2005 at least 85% of US companies were outsourcing at least one component of their HR functions and the number of outsourced business processes had doubled since 2000. The worldwide growth for HRO was estimated to be worth $80 billion (Babcock, 2004, pp. 71-72)Exult Corporation, recently acquired by Hewitt Associates for $691 million in stock went from a start-up to over 1,500 employees and 400 million dollars in revenue in its first four years of operation. Outsourcing is a growth industry and an option that every HR function must consider when designing ways to provide services, particularly those of a transactional and administrative nature.

7. ORGANIZATIONAL DESIGN

Armada Human Capitals structure will be split into four main areas. Each area will be managed by a leader.1. Board of Directorsa. Peter Nduati, Chairman of the Boardb. Kris Senanu, Board Memberc. Vivian Ojal, Executive Directord. Gregorio Cardenas-Vazquez, Executive Directore. Robert Ochola, Executive Directorf. Franklin Juma, Company Secretaryg. Brian Were, Executive Directorh. Isaac Fokuo, Board Member

2. CEO, Vivian Ojala. Advertisingb. Marketingc. Legald. Public Relationse. Human Resources, Relocation & Travelf. Facilities Management

3. COO & President, Gregorio Cardenas-Vazqueza. Salesb. ATS Designc. Service Deliveryd. Client Servicese. Administrationf. Project Management Office

4. CTO, Mike McDonnella. Technologyb. Help Deskc. ATS Research & Developmentd. Armada Branded Websites & Maintenancee. Meshhire Configurationf. HRIS

5. CFO, Brian Werea. Audit &Budgetb. Financec. Treasuryd. Taxe. Accountingf. Purchasing

The company, will be led by the C-Level team, which is made up of a Chief Executive Officer, Chief Operating Officer and Chief Finance Officer. All of which are accountable to the Board of Directors.The organizational structure will be remodeled as changes in Armada Human Capital service offerings occur in addition to the changes in the operating environment. This will enable continued effective management of the business whilst maintaining the flexibility to proactively adapt and respond to market changes.

ORGANIZATIONAL STRUCTURE

Armada Human Capital recognizes the key role played by staff in ensuring its success and views staff as the most important asset. Well-defined policies will be put into place to ensure the right caliber of staff is available in the company. An agreed head count will be done to ensure optimal numbers are maintained at Armada Human Capital. All additional headcount required, will have to be approved by the executive team and the board. A Performance Management and Development system (rating system) will be put in place for appraising, promoting and remunerating employees. Staff will agree on personal annual performance objectives with their supervisors or managers at the beginning of each year. At least two preliminary reviews will be done during the year. At year end, final reviews are completed and the performance appraisal process is applied for the basis for promotions and remuneration adjustments.

7.1 PERSONNEL

Armada Human Capital staff fall primarily into 3 groups of which any C-level executive may have some staff from each group under their leadership. The 3 groups are:1. Front-office, these are staff that are primarily client facing and drive sales and client service.2. Back-office, these are staff that focus on service delivery based on all the contractual obligations in support of our clients. As such, staff members do not engage clients at all though do engage with candidates or in some cases direct employees of staff but not hiring managers, recruiters, or other client HR staff.3. Administration, these are staff members that do not support clients but rather support internal staff. They help keep the business running such as legal, accounting, investor relations, facilities, etc.

Most of the front-office staff is skilled and professional. In the beginning, staff from Africa will be developed to better understand how to work in a diverse, global, multi-cultural environment. In addition, staff will be developed to understand our business model, best practices, and techniques for success. Most of the developmental training will be provided directly through the leadership and management team from abroad, which ideally is coming from industry. As such, most leaders will be foreign though most managers will be local to ensure the right balance of development and risk. In this regard the management teams will work closely and collaborate together to be as effective as possible to generate the right results.Foreign SMEs will be recruited from USA and EU with an emphasis on United Kingdom, Germany and France as these countries offer the most developed talent within the industry. Possible alternate locations could be from expats (from the same countries) currently based in India or China and looking for a new challenge. Our compelling case to joining us is obviously the ground floor opportunity, the vision set forth by the founders (Vivian and Greg), trends in the industry, and our revolutionary services and products we intend to offer which will really make an impact in this market worldwide.Local staff will be recruited from Nairobi and other service center target cities to be determined. A mix of front-office staff to develop and back-office staff to train in human resource and recruiting delivery best practices will round out the core team. We will replicate this model in other parts of the world where we will eventually grow out additional service centers.All staff will be paid at the 75th percentile of current salary expectations for the locations they are based. Foreign expats will be compensated at the 65th percentile if living in their home countries and operating from our representative offices. Expats relocated to Africa from abroad will be compensated at 75% of current top management salaries for foreigners or $10,000 per month net income (whichever is higher). This does not include relocation costs, which will also be provided. However, housing (such as home rental), car & driver, can be deducted from the net income if arranged through Armada Human Capital. Security and health insurance will be provided by Armada Human Capital, in addition to personal income tax. Adjustments to compensation can be made by the supervising authority. For example, C-level executives approve salaries for VPs and the Board of Directors approves salaries for C-level executives. This cascades down through the organization and benchmarked through internal HR.Work schedules are managed by supervising authority of direct reports. In addition, all methods and procedures are developed by each function and quality control checked by our resident in-house Six Sigma master black-belt. This ensures we are constantly looking to improve upon our process for everything we do internally or externally to support clients.Job descriptions have been created for the majority of the core team members and new ones will be created as new team members and functions come online to provide support for the business as we grow. Internal HR will maintain the job descriptions, employee records, performance evaluations, and contracts with any 3rd party independent contractor we may engage as needed.7.2 PRELIMINARY STAFF PLAN RECOMMENDATIONS

Preliminary staff plan recommendations are as such to operate lean while generating momentum. As momentum and staff grow, additional higher-level staff at the Director or high level may be added. This will depend largely on the effectiveness of our first line managers, span of control, and availability of Greg and Vivian, who will be mentoring launch staff during this preliminary launch phase.As initial RPO contracts are landed and the service delivery against them is stabilized. Armada Human Capital will slowly start to expand our service offering in other areas of HR. As such we will offer both RPO and HRO services. In this case we can use the term RPO and HRO depending on the client as RPO is purely recruiting only related services and HRO is anything else that falls within HR. Services such as outsourced payroll, outsourced global mobility, outsourced benefits administration, outsourced HR administration, and management consulting will be initially offered. All of these services will be considered as secondary revenue to RPO which is primary revenue given it is the largest revenue source of the company.During this phase, recruiting systems will also be marketed and sold via the initial sales team. This will involve the introduction of Armada Recruiter which is a white-labled ATS in partnership through MeshHire. Our goal is to power as many of the career sections of our clients and offer the system though embedded in our price to clients. Thus, we will market it as free to clients and pay per use version for non-RPO clients of Armada.The 2nd phase of expansion will also be the phase whereby the service center outside of Nairobi is established. Staff numbers will be determined by revenue forecasts. Hiring will be done in a fashion whereby the front-end is beefed up and then the back-end to follow. Obviously here the goal is to not have extra capacity in the back-end before we hire nor do we want the back-end to be waiting on the front-end to pick things up through added sales. Monitoring of both ends will be key for obtaining operational efficiencies and maximum profitability.During this phase additional sales staff will also be hired to penetrate new markets within the region such as South Africa, Nigeria, etc. Which countries will serve as our first tier targets may be influenced by initial clients based in Kenya having operations in other various countries within the Pan-African region.The 3rd phase will see the increase of our services portfolio to include the full breath of HR related services. At present we have identified over 50 services we could offer clients as these needs service while providing RPO or other services for them. This would also include the expansion into tier 2 countries beyond those initially targeted earlier for expansion. It is only after this phase that we can really start to target global countries outside our own regionsuch as United States and EU member states.As part of our exit strategy, we need to poise Armada Human Capital as a new kid on the global top tier HRO service provider block. This will take some time to develop ourselves, our reputation, our best practices, our technology, and ultimately our appeal for possible acquisition or merger. This assumes however that is what we intend to do at that time. Should Armada Human Capital do everything right, we will be the HRO service provider that no other global HRO service provider can compete with. In this case, Armada may be doing the buying out!7.3 REMUNERATION OF EMPLOYEES

A system based pay package will be used to determine employees pay. This takes into account the number of years in employment, staff level and percentile achieved in the performance appraisal rating system. Armada Human Capital staff remuneration will also be closely linked to the performance of the business.

8. FINANCIAL PLAN

Armada Human Capital has approached our financial plan on a conservative basis having benchmarked our projected sales revenue against industry leaders when they were in the start-up phase. As will be illustrated in this section, our financial plan is very solid and we do not anticipate any difficulty meeting our obligations including the debt financing we hope to secure in the start-up phase.The financial plan includes: Break-even analysis Profit and loss projection Cash flow projection Balance sheet projection

8.1 BREAK-EVEN ANALYSIS

For our first year break-even analysis, we have an average monthly fixed cost of $85,000. These costs include non-sales related payroll, rent, utilities, insurance and other general running costs. With variable costs estimated at 35% of sales, our monthly break-even point is $131,000 in sales. We estimate we will surpass our break-even point in 6 months.

Break-even Analysis

Estimated Monthly Fixed Costs85,000

Estimated Variable Costs as a % of Sales35.3%

Monthly Revenue Break-even131,000

Break-even point = where line intersects with 0 (zero).

8.2 PROJECTED PROFIT AND LOSSOutlined below and in the accompanying are some of the intrinsic faucets of the projected profit and loss for Armada Human Capital. Over the 5-year projection period, we estimate an 86% average annual growth in sales from an estimated $1M in sales in FY2012 to $12M in FY2016. By charging for services on a pay-per-use model, our clients will have an additional cost savings not offered in the developed world. Recruitment process outsourcing services are the most popular HRO services within the industry. Best practices and vendor scalability have been proven in HR over time and enterprises perceive RPO options as being less risky and offering good value for money. We project Armada Human Capital will turn a profit from the first year, FY2012. The net margin is estimated to grow from 6.5% in FY2012 to 43% in FY2016.

8.3 PROJECTED CASH FLOWThe following table outlines the projected cash flow over the 5 year period from FY2012 through FY2016. While we do not intend to extend lines of credits to our clients, we have factored and assume we will collect 60% of sales revenue within the first 30 days.

8.4 PROJECTED BALANCE SHEETThe projected balance sheet indicates a strong financial position for Armada Human Capital. We estimate a positive net worth for Armada Human Capital from year 1. The net worth is estimated to grow to $8.5M in FY2016.

8.5 SENSITIVITY ANALYSISWe have reviewed the effect on net income given a variation in our projected sales revenue. The following scenarios were analyzed: Baseline the projected net income as illustrated on page 30 Scenario 1 projected net income assuming revenues are 15% higher than the Baseline scenario. Scenario 2 projected net income assuming revenues are 15% lower than the Baseline scenario.

We estimate that under Scenario 2 where sales revenues come in 15% lower than our projections, other than an estimated projected loss of $10K in FY2013, Armada Human Capital will still be able to maintain profitability over the long term.The chart below illustrates the effect on the net income of the 2 sensitivity scenarios.

8.6 ASSUMPTIONS

The cost of funds is estimated at 30% per annum. Commission on sales is set at 10% of gross sales Percentage of sales collected within 30 days is 60%

9.