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DAKOTA June 6, 2012 Thank you for your interest in having Dakota Worldwide perform a market analysis to determine the feasibility of opening a 7,000 square foot grocery store at either 1033 North Bendix Drive or 425 South Michigan Street in South Bend, Indiana. The following is a brief description of the work we perform along with costs and timing. Scope of Project The project begins with field work. Competitors will be identified and evaluated based upon facility size, sales volume, operations and depth of the natural foods assortment. Government officials for all the communities that will be affected by the new cooperative will be queried. Building permits and subdivision activity reports will be reviewed to determine potential market changes and population variances from the 2010 Census. Possible road changes that may affect traffic patterns at or near the sites will also be taken into consideration. When the fieldwork is complete, our analyst will first define a trade area. The trade area is determined by the existing road network, natural boundaries, shopping patterns, drive times and the site's relationship to competition. After the trade area has been defined, the analyst will build a LOCUSTM model for the entire trade area. Once a model of the current marketplace has been constructed, the new grocery store will be introduced into the marketplace and three -year sales forecasts generated. The entire process will then be reviewed by other in -house analysts to ensure the accuracy of the modeling process and subsequent sales forecasts. Sales projections for the proposed store will be based on site characteristics, population changes, existing demographics, store operations, competitive strengths, and any possible market changes that are likely to occur. Various sizes can be tested. The fee for this analysis is $6,500 plus expenses. Expenses are essentially the travel costs associated with conducting the field work. They include airfare, car rental, hotel, and a meal per diem. For this project the expenses will be capped at $1,600. Deliverables Deliverables will include a competition map and a detailed report which includes, along with three -year sales forecasts for the site, a summary of competition, trade area delineation, and an analysis of the site. Dakota Worldwide requires a 50% down payment before field work commences. Once a down payment is received, your project will be scheduled. Timing is approximately three weeks from the beginning of field work to when the final report is delivered. Dakota Worldwide Corn. 8200 Humboldt Avenue S, Suite 302 • Minneapolis, MN 55431 Telephone 800.475.4505