Celebrity Stylist Agreement DOP DOP INC BUSINESS PLAN Page 1

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Celebrity Stylist Agreement document sample

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							DOP DOP        INC.                       BUSINESS PLAN                                     Page 1
170 Mercer Street New York, NY 10012



EXECUTIVE SUMMARY

       Dop Dop, Inc. is a “medium- scale” single-site hair salon located on a high traffic block in New
       York’s fashionable Soho area. The salon was opened November, 1996, and was immediately
       profitable on an operating basis (pre-financial charges). It has steadily grown revenues and
       operating cash flow since its opening. The salon rents 4,000 square feet of split- level (street
       level and basement level) space on a ten- year lease, which was converted from a former dance
       studio into an airy, well- lit and open space with dramatic interior design. The décor of the
       salon emphasizes the artistic theme of the surrounding Soho neighborhood of galleries, graphic
       design companies and shopping boutiques. The high two level walls have hand-painted
       treatments and dramatic lighting that display an ever-changing collection of art works from
       artists around the neighborhood. Regular “gallery openings” at the salon, in which local artists
       introduce their art at Dop Dop provide occasions for introduction of the artist as well as raise
       awareness in the neighborhood of the salon itself and often involve joint marketing programs.
       For example, at one such opening, Absolute Vodka sponsored the bar and cross-referenced
       invitee lists with Dop Dop and the artist.

       Dop Dop competes on the basis of recruiting and retaining experienced hair stylists with an
       existing and transferable clientele. Approximately 90% of new business is referral and existing
       clientele of new employees. Approximately 10% of new business is walk- in traffic. The
       number of hair stylists on the payroll has grown from eight at the salon’s opening to 12 today.
       Dop Dop management believes that the keys to attracting and retaining high-producing stylists
       is providing a collegial and energetic atmosphere in which the stylist can develop their skill-set
       to better serve their clients and encourage referral business. Because Dop Dop’s business plan
       places greater emphasis on the development of the stylist, including the stylist’s own marketing
       skills, it does not spend heavily on general marketing, publicity and advertising. By creating a
       “creative workshop” approach to the salon, Dop Dop has become a magnet for high-producing,
       experienced stylists with a well-established and growing client base, as well as inexperienced
       but highly promising assistants training to take on full stylist responsibilities. The current
       owner/operators, Ms. Jo Blackwell and Mr. Antony Sabatier are internationally known
       personalities in the salon industry, particularly with respect to hair coloring. The owners are
       frequent presenters and speakers at industry conferences around the country, and travel
       internationally to teach in salon exchange programs.

       The economics of a salon of this type can be very attractive since fixed costs are minimal, and
       average tickets in the area are high. In addition, Dop Dop places an emphasis on coloring,
       which is an especially high- margin product. In the third quarter of this year, the average ticket
       was $94.00 per customer. The gross margin per customer was $44.00 during the quarter (less
       stylist compensation and direct materials). Customers per week averaged 188 during this
       period. Fixed costs per week during this period (including rent, utilities and salaried staff was
       $3,230.00. Stylists are paid on a straight commission, generally 50%/50% with the salon,
       which is the industry standard. The initial build-out of the store cost was $342,000, which the
       owners believe, was a very attractive cost, and resulted from a special relationship be tween one
       of the investors and a general construction contractor.
DOP DOP           INC.                           BUSINESS PLAN                                         Page 2
170 Mercer Street New York, NY 10012

       It is projected that 10,000 customers will visit the salon in 1999. Projected visits for the years
       2000 and 2001 will increase 4.5%and 6.5% to 10,450 and 11,130 respectively. The average
       price will increase in the year 2000 to $96.00 and in 2001 to $100.00.

       Dop Dop management believes it competes in the market for professional men and women
       willing to spend between $75 and $200 for a haircut and/or color treatment. This price point is
       in line with other high-end salons in New York. Management believes there are five salons
       within a half- mile radius of approximately the same size, price point and targeting the same
       clientele. The market for Dop Dop’s services is unlimited, and management believes that
       because the growth of its business is driven by the transfer of a stylists’ existing client base
       from his/her former employer, the physical proximity of competing salons has little to do with
       Dop Dop’s volume growth. Management believes that approximately one-third of the clients
       live or work in the immediate neighborhood of Soho. Approximately one-third work in the
       financial district of lower Manhattan, which borders the Soho market approximately half a mile
       to the south of Dop Dop. Approximately one-third of clients travel more than a mile to Dop
       Dop from uptown Manhattan and outside New York City. Clients working in the financial
       district will typically stop at Dop Dop on their way home from work, and proceed uptown, or
       will turn an appointment at Dop Dop into a lunch and shopping trip.

     The number of professionals working and living in the southern mile of Manhattan, which is
     Dop Dop’s target market, is so large as to make market share and penetration analysis
     meaningless. Dop Dop’s weekly revenues have grown steadily in each quarter as the size and
     quality of the staff goes through a process of continuous upgrade. Dop Dop has attempted to
     create stability in the staff at the expense of rapid volume growth, in an effort to promote a
     cohesive “team” atmosphere. This is a quite different approach than the majority of salons,
     particularly in Soho, which encourage less discriminate hiring, high volume and high turnover
     in stylists. Many of these salons depend more on walk- in business to cover prime location site
     costs. Dop Dop management has sought slower growth with greater stability in staff, which
     ultimately can withstand a future downturn in discretionary spending of walk- in prospects. The
     company is seeking $300,000.00 in financing to refinance.
FINANCIAL HIGHLIGHTS

                  Act ual 97     %     Act ual 98      %     Proj. 1999     %     Proj. 2000     %     Proj. 2001    %


SALES - Salon      660,952      96%        791,190    96%        870,750   95%    1,016,825     95%    1,124,054    95%
         Retail       30,072     4%         33,270     4%         47,709    5%         52,480    5%       57,728     5%

                   691,024      100%       824,460    100%       918,458   100%   1,069,305     100%   1,181,782    100%




GROSS PROFIT       476,943      69%        542,666    66%        621,806   68%        682,535   64%      740,360    63%


              ($7,447)
NET INCOME (LOSS)                -1%       $43,665     5%        $94,294   10%        $76,594    7%      $86,041     7%




T ot al EBIT DA       20,993                78,153               128,751              119,061            125,665


Ending Cash       $     (400)          $    (2,499)          $    17,970          $    68,064          $ 124,400
DOP DOP        INC.                        BUSINESS PLAN                                       Page 3
170 Mercer Street New York, NY 10012




MARKETING ANALYSIS


       Dop Dop’s target market is professionals aged 25-60 who live or work in the Soho area or in
       the financial district of lower Manhattan. The market potential is unlimited. Because Dop Dop
       clients, in fact, come from all over Manhattan, only the theoretical referral base of its roster of
       stylists limits the market. There are approximately 1,250 hair salons listed in the Manhattan
       yellow pages, which indicates to management that the hair salon business in New York City
       represents at least a quarter of a billion dollars in sales per year.

       Within this market, Dop Dop believes it is priced within the top quartile in terms of price point,
       reflecting the experience of its stylists, the time and attention paid to each client as soon as they
       walk in the door and the high-end location. Salons with higher price points are typically the
       most expensive salons, those found on Madison Avenue with celebrity status promoters, high
       publicity and advertising expenses, and higher rent expenses. These salons also cater
       exclusively to the very wealthy client, and often include general spa facilities.

       Dop Dop’s services are limited to hair care and makeovers. Services offered include haircuts
       ($75), color ($70-$190), color correction ($200 and more), relaxers ($70), perms ($70-$175),
       conditioning treatments ($20-$50), hair extensions ($200 and more), eyebrow arching ($15),
       updo’s ($55-$100), makeup ($50-$75), and blow-dries ($40-$60). Dop Dop also sells
       approximately $1,250-$1,500 per week in retail product sales. These products are purchased
       wholesale from Kerastase Paris, Long Island Salon Service, J.T. Salon Systems, Four Star, and
       Millenium. The gross margin on such sales is typically in the range of 50%. Dop Dop does not
       heavily promote retail product sales as a profit center in itself, but recommends the products it
       believes are the highest quality and in the best interests of the client. In 1996, Ms. Blackwell
       entered into an agreement with Artec and Texture Line, one of the leading hair product lines in
       the haircare industry. Ms. Blackwell was chosen to be on of Artec’s three international hair
       color directors to represent Artec at industry shows and teaching exhibitions.

       Dop Dop’s only advertising is a small ad in Time Out NewYork magazine, a high-circulation
       weekly, read by the salon’s target audience. However, Dop Dop believes little salon business is
       generated by large distribution advertising, and so it is reluctant to expend significant cash on
       such advertising. Instead, Dop Dop has been featured in a wide range of general interest
       magazines, wide circulation beauty magazines and industry magazines as one of the leading
       hair salons in Soho. This publicity has come at no expense to Dop Dop, and has been based
       solely on the reputation created by Ms. Blackwell and Mr. Sabatier. (see Management below)
       In 1998 and 1999, Dop Dop was featured in articles in Vogue, Marie Claire, Time Out New
       York, Soho Style, American Salon, Modern Salon, and Marcel Magazine (Japan).


INDUSTRY/COMPETITIVE ANALYSIS

       Management believes there are five salons in the Soho area that directly compete with Dop
       Dop. These include John Dellaria, Space, Oscar Bond, Aveda, and Devachan.
DOP DOP        INC.                        BUSINESS PLAN                                       Page 4
170 Mercer Street New York, NY 10012


       John Dellaria is a high volume salon on Soho’s busiest street. It is approximately three times
       the size of Dop Dop in square footage, and is the oldest established salon in the area. John
       Dellaria’s business plan is to hire as many stylists as possible, including those with less than
       one year’s experience and generate high volume. Its price point is approximately one-third
       lower than Dop Dop’s. John Dellaria generates more walk- in traffic because of its location.
       John Dellaria’s business model has been successful for it. It is the only salon in Soho with a
       high walk-in traffic. Dop Dop believes its artistic atmosphere and slower pace targets a more
       sophisticated clientele than clients targeted by John Dellaria. John Dellaria’s décor is stark
       modern and loud, rhythmic music creates an atmosphere of high energy. There has been very
       little transfer of stylists between Dop Dop and John Dellaria one way or the other since Dop
       Dop’s opening.

       Space opened shortly after Dop Dop, approximately half a mile from Dop Dop on Soho’s
       Western border on Sixth Avenue. Space spends heavily on publicity and has sought to
       cultivate an image of elitism and celebrity through heavy media promotion. Space was opened
       by four owner/operators, formerly with Aveda, and in the first two years sought to poach
       stylists from other downtown salons. Space suffered high turnover in staff initially, but has
       since changed its strategy by promoting more assistants from within. In the past year there
       have been no reports of aggressive poaching of stylists local salons. And it appears that Space
       has achieved a healthy volume of business.

       Aveda is a chain of high-end stores owned by Estee Lauder that combine retail product sales
       for facial and other beauty products with haircare and spa facilities. The Soho Aveda store is a
       large, three-story store on Soho’s busiest street. It does a high walk- in business as a result of its
       reputation and franchise, but it is primarily known as a retail store and spa, and its hair facilities
       are relatively small—about six cutting stations. Aveda’s stylists are not widely known, and
       there is little threat of Dop Dop clients or stylists being lost to Aveda. In fact, Dop Dop views
       Aveda as a good training ground from which it can attract promising stylists, and has in the past
       hired several former Aveda stylists.

       Oscar Bond. This year, one of Aveda’s top stylists opened his own salon about half a mile
       south of Dop Dop, in lower Soho. Management believes this salon most closely resembles Dop
       Dop’s business plan in mood and the attempt to cultivate a highly skilled team of stylists.
       Oscar Bond is a close friend of the owners of Dop Dop. They believe he has opened a
       somewhat smaller space, and currently has a staff of only about four stylists. Oscar Bond is on
       an off-street, and will also be cultivating an almost exclusively referral business, which Dop
       Dop’s management believes will take several years to develop. Dop Dop’s management
       believes it is on close terms with Oscar Bond and there is little risk of his poaching staff fro m
       Dop Dop.

       Devachan is on a heavy volume section of Broadway, approximately one and a half blocks
       from Dop Dop. The space is large and the salon promotes an image of “new age” massage and
       style. There has been little interaction with this salon over the years. They apparently have a
       largely walk-in clientele based on the salon’s heavy traffic location and little is known about
       the owners and staff in the local salon community.

       Total gross revenues at these salons is probably $5 million per year. Howe ver, as discussed
       above, the nature of the high-end salon business, which is a professional service and based
DOP DOP           INC.                     BUSINESS PLAN                                      Page 5
170 Mercer Street New York, NY 10012

       largely on the captive clientele of individual stylists, is less sensitive to the proximity of other
       salons. In fact, management believes there is a slightly positive impact of an increase in salons
       opening in close proximity to Dop Dop. Each new salon in the area brings with it stylists who
       attract their clientele into the area, in many cases from uptown or midtown locations. Once
       transferred to the Soho location, it is easier to transfer this business to Dop Dop as prospective
       stylists apply for employment at the salon. In 1999, Dop Dop hired six stylists and stylist
       assistants from competitor’s salons in the area. Dop Dop lost no stylists over the same period
       to poaching by its competitors.

       The Soho business area has been the most rapidly growing business community in New York
       City for the past twenty years. Garrett Aug Real Estate reports that over the past five years,
       commercial rates have increased 100%. Dop Dop’s location is on a medium- heaby traffic
       block at the gateway to Soho on its northern border with Greenwich Village. Directly across
       Houston Street on the salon’s north side is the famous Angelica Film Theatre, which draws
       large crowds of on a continuous basis. On the other side of Dop Dop, to the south, is Soho
       proper, with its high-end boutiques, art galleries and popular restaurants and bars.

       Within just the two square blocks surrounding Dop Dop new business openings since 1996
       have included the new Marc Jacobs boutique. Marc Jacobs is one of the hottest fashion
       designers in the country today. He opened his flagship store directly across the street from Dop
       Dop this year and has been referring clients to the salon on a regular basis. Last year the
       famous new Mercer Hotel opened on the block and Dop Dop implemented an association of
       referrals to Dop Dop by the hotel staff. The Mercer Hotel also houses Soho’s only five-star
       restaurant, which is less than 100 yards from Dop Dop ’s front door. The Haven spa on Mercer
       Street also sends referrals to Dop Dop. The Match Restaurant and The Merc Bar, two trendy
       and highly popular restaurants and bar/nightclubs, respectively, that are within thirty yards of
       Dop Dop’s front door provide constant traffic past Dop Dop’s front door. New boutiques on
       Dop Dop’s block this year include a Stephan Kelian shoe boutique and a Versani hand crafted
       silver jewelry boutique. Early next year a new Prada store is expected to open on the block as
       well.

MANAGEMENT

       Jo Blackwell and Antony Sabatier are the dynamic force behind Dop Dop, a new Soho salon
       offering a unique, whole- vision approach to hair design. Their innovative style and passionate
       edge have the SoHo crowd buzzing. In a city where salons vie for top real estate and celebrity-
       peppered rosters, Dop Dop, a New SoHo salon, is distinguishing itself in other ways. have
       taken the traditional, French idea of a salon as a meeting and discussion place, and built a
       unique, successful business around it. “I was raised in the salon tradition of Paris," says
       Sabatier, "where a salon is about a place to relax and meet friends. Dop Dop isn't just a place
       to get your hair done. Here, we give, artists the opportunity to be open and creative". The
       location in SoHo targets upscale artists, designers and Wall Street clientele.

              .

       Blackwell, reared in the Midwest, but with a passionate streak that reveals her Italian lineage,
       wanted to own a salon by the time she was thirty. She approaches hair design as an ar tist and
       cringes at the assembly line activity in many salons today. She believes that the Jean Louis
       David-type salons have killed the individuality and creative flair that used to dominate the
DOP DOP        INC.                       BUSINESS PLAN                                     Page 6
170 Mercer Street New York, NY 10012

       business. She decided to open Dop Dop in order to have a fo rum where hair design and art are
       one-

       While still in high school, Blackwell would save her money and take beauty classes in addition
       to her full-time schedule of college prep courses- Blackwell was not encouraged by her mother,
       who thought the business of beauty was, "Only for bubble-headed, bleached-blondes who chew
       gum and talk gossip all day long- " Blackwell, not easily discouraged, went on to train with Paul
       Mitchell, Vidal Sassoon, Jacques Dessange, and Trevor Sorbie among others. She was well on
       her way to the top of the profession by the time she was in her early twenties. While Black-
       well was working in Houston, she caught the eye of John Dellaria who recruited her to take
       over his New York salon as artistic color director where she just completed a six- year stint.
       She is a color educator conducting seminars nationwide and has been the main-stage presenter
       at Hair Color USA and International Hair Color Exchange. When time permits, Blackwell is a
       hair stylist for major fashion shows including Carolina Herrara, Betsey Johnson, and Isaac
       Nfizrahi.

       Blackwell, one of the few females at the top of the industry, believes that women are more
       interested in reaching their goals through shared responsibility. As co-owner of the salon each
       of the stylists were hand-picked for the quality of their work, not for commercial exposure.
       Blackwell is overwhelmed by the well wishers who have been flooding the gallery, but most
       importantly for Blackwell is her mother's new appreciation for her profession as a hair
       designer.

       Antony Sabatier has been working side-by-side with Blackwell for six years. Bom in Paris,
       Sabatier trained with Jean D'Estres for three years completing a classical apprenticeship. He
       then worked for Jacques Dessange. Sabitier then traveled to gain international experience
       eventually settling in Mexico City for six years with Noel Serrat. By 1991, he moved to New
       York and worked at John Dellaria for six years.

       Sabatier, with long artist's hair and a dancer's build, sees the individual beauty in each of his
       clients and brings that out. He has been dancing for sixteen years and has always expressed
       himself through a creative medium. The same energy and passion he uses to choreograph a
       dance funneled to orchestrate the creative process and working environment of the salon.
       Sabatier has a natural ability to bring the artistic process out into the open; he provokes and
       stimulates the imaginations of the other designers. Ultimately he would like to incorporate the
       artistic flair of the neighborhood into the business with art exhibitions and fashion shows in the
       space. Sabatier believes that once you have learned the techniques in the business that it is
       your personality that then turns a hair cutter into a hair designer, Blackwell and Sabatier's
       vision to adhere to the artistic principles of hair design transcends the salon. Dop Dop is setting
       new lines in the hair design business.
DOP DOP           INC.                          BUSINESS PLAN                                 Page 7
170 Mercer Street New York, NY 10012




DANIEL M . SIERCHIO, CPA
________________________________________________________________________
100 West Main Street Suite 316 Lansdale, PA 19446             215-368-9687 Fax 215-631-9151




Shareholders and Directors
Dop Dop Inc.
170 Mercer Street
New York, NY 10012

Dear Partners Shareholders and Directors:

I have compiled the accompanying Projected Statement of Operation for Dop Dop Inc. for the Twelve
Months ended December 31,1999 and December 31, 2000 and December 31 2001.

This projection was compiled as result of discussions with management. I have not audited or re viewed
the accompanying projection and accordingly, do not express an opinion or any other form of
assurance on them.

Management has elected to omit substantially all of the disclosures required by generally accepted
accounting principles. If the omitted disclosures were included in the financial statements, they might
influence the user's conclusions about the company's position, results of operations, and cash flows.
Accordingly, these financial statements are not designed for those who are not informed about such
matters.


Sincerely,


Daniel M. Sierchio, CPA
November 5, 1999
 DOP DOP                INC.                            BUSINESS PLAN                                      Page 8
 170 Mercer Street New York, NY 10012




                                                       DOP DOP INC
                                         Statement of Actual and Projected Expenses
                            For the period ended December 31, 1997 through December 31, 2001
                     Act ual 97      %     Act ual 98     %     Proj. 1999      %     Proj. 2000    %     Proj. 2001     %


SALES - Salon           660,952     96%     791,190      96%       870,750     95%    1,016,825    95%    1,124,054     95%
           Ret ail        30,072     4%      33,270       4%        47,709      5%       52,480     5%       57,728      5%
                        691,024     100%    824,460      100%      918,458     100%   1,069,305    100%   1,181,782     100%


COST OF SALES:          214,080     31%    $281,795      34%      $296,652     32%     $386,770    36%     $441,422     37%


GROSS PROFIT            476,943     69%     542,666      66%       621,806     68%      682,535    64%      740,360     63%


GEN. & ADMIN:           486,085     70%     491,869      60%      $554,328     60%     $602,116    56%     $649,995     55%


                (9,141)
NET OPERAT ING INC                   -1%     50,797       6%        67,478      7%       80,419     8%       90,366      8%
  (LOSS)
OT HER INC. (EXP)
Cont ribut ions           (3,022)             (1,148)                (1,148)             (1,500)              (2,000)
Ot her Income              5,479                    -               35,034                1,000               1,000


T OT AL OT HER             2,458     0%       (1,148)     0%        33,886      4%         (500)    0%        (1,000)    0%


                 (6,684)
NET INC (LOSS) BEFORE                -1%     49,649       6%       101,364     11%       79,919     7%       89,366      8%
  T AXES
INCOME T AXES:
St at e Corporat e t ax     163                  325                   325                  325                 325
Cit y Corporat e t ax       600                5,658                 6,745                3,000               3,000


                   763
T OT AL INCOME T AXES                          5,983      1%         7,070      1%        3,325     0%        3,325      0%


              ($7,447)
NET INCOME (LOSS)                    -1%    $43,665       5%       $94,294     10%      $76,594     7%      $86,041      7%




                                     Management has chosen to Omit all Disclosures
DOP DOP              INC.                     BUSINESS PLAN                                          Page 9
170 Mercer Street New York, NY 10012




 C ost of Goods Sol d                           Act ual 97       Act ual 98    Proj. 1999     Proj. 2000    Proj. 2001
COST OF SALES:
BEGINNING INVENT ORY                                 4,430            4,430          4,850         5,100          5,350
Purchases                                           49,239           74,185         81,867       113,304       125,106

Salaries & Wages St ylist s                       164,842          208,030        215,205        273,715       316,666
ENDING INVENT ORY                                   (4,430)          (4,850)        (5,100)       (5,350)        (5,700)

T OT AL COST OF SALES                            $214,080         $281,795       $296,822      $386,770       $441,422




GENERAL & ADMINISTRATIVE:                       Act ual 97       Act ual 98    Proj. 1999     Proj. 2000    Proj. 2001
Advert ising                                         9,360            9,570          9,524        10,000         15,000
Salaries & Wages                                    92,689         128,438        127,889        162,659       188,183
Officer's Salaries                                130,007            61,213       118,697        125,000       125,000
 Leased Equipment                                    7,646            5,975            585         1,000          1,000
Bank Service and Credit card Charges                13,698           15,881         17,168        19,988         22,090
Depreciat ion Expense                               14,494           16,288         16,288        17,000         18,000

Amort izat ion Expense                               1,304            1,304          1,304         1,304          1,304

Dues and Subscript ions                                253              289            246           500            500
Rent                                                76,716           85,564         80,409        82,821         85,306
Educat ion                                           1,738              125          2,000         3,000          4,000
Ut ilit ies                                         15,794           18,616         17,424        24,166         26,708
Insurance- Healt h and Disabilit y                   5,585           19,458         20,944         1,000          1,000
Insurance                                           12,385           10,528         12,064        13,000         14,000
Int erest Expense                                   11,879           10,912          9,794        20,838         16,995
Legal, Account ing & Professional                    8,050            6,750          9,666        10,000         10,000
Licenses and Permit s                                        0            88           193           300            500
Office Expense                                       4,860              999            750         1,000          1,000
Repairs and Maint enance                             4,122              753            398         1,500          2,500
Supplies Expense                                    13,418           38,384         39,958        40,000         40,000
Out side Services                                      380              301          4,032         4,000          5,000
Miscellaneous                                        4,016            4,952         10,767         1,000          1,000
T axes - Payroll                                    36,710           36,363         35,998        43,761         49,099
T axes - Ot her                                      2,236            3,761          5,669         1,200          1,200
Payroll processing                                   3,391            4,399          4,355         5,294          5,940
Print ing and Reproduct ion                          6,156            1,330            901         2,000          3,000
Refunds                                                275              381            421         1,000          1,000
T elephone                                           6,631            4,653          4,903         6,035          6,670
T rash Removal                                         609              965            623           750          1,000
T ravel an Ent ert ainment                           1,681            3,630          1,361         2,000          3,000
T OT AL GENERAL & ADMINIST RAT IVE               $486,085         $491,869       $554,328      $602,116       $649,995
                                 Management has chosen to Omit all Disclosures
DOP DOP              INC.                           BUSINESS PLAN                           Page 10
170 Mercer Street New York, NY 10012


C AS H FLO W
                      Act ual 97          Act ual 98       P roj. 1999       P roj. 2000    P roj. 2001
Opening Balance Cash         13                 (400)           (2,499)           17,970         68,064
add Depr & Amrt . $ 15,798                $   17,592      $     17,592       $    18,304    $    19,304
Less:P rincpl. paid       (7,121)             (59,732)         (91,417)          (44,805)       (49,008)
capit al expend.          (1,643)              (3,625)
Net Income                (7,447)             43,665            94,294            76,594         86,041

Ending Cash           $     (400)         $    (2,499)    $     17,970       $    68,064    $ 124,400




EARNINGS BEFO RE INTERES T, TAXES , DEPREC IATIO N AND AMO RTIZATIO N


                      Act ual 97          Act ual 98       P roj. 1999       P roj. 2000    P roj. 2001
Net Income            $ (7,447)           $   43,665      $     94,294       $    76,594    $    86,041

add:Depr. & Amrt .        15,798              17,592            17,592            18,304         19,304
         Int erest        11,879              10,912             9,794            20,838         16,995
         T axes             763                5,983             7,070              3,325         3,325

T ot al EBIT DA           20,993              78,153          128,751            119,061        125,665




                                    Management has chosen to Omit all Disclosures
DOP DOP        INC.                    BUSINESS PLAN   Page 11
170 Mercer Street New York, NY 10012
DOP DOP        INC.                    BUSINESS PLAN   Page 12
170 Mercer Street New York, NY 10012

						
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