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A TIRE COLLECTION AND PROCESSING SITE CONTAINING IN EXCESS OF 1,500 SCRAP TIRES OUTSIDE:

Physical/Environmental

•Tires may only be accumulated in designated areas.

•Piles to be no more than 20’ high, 50’ wide, 250’ long.

•Minimum separation of 60’ between piles.

•Piles to be at least 100’ from perimeter of property and 100’ from any buildings.

•Piles to be maintained (i.e., under a roof or processed) to limit mosquito breeding.

•Piles to be accessible to fire fighting equipment

•Site operator should provide acceptable financial security to cover cost of ultimate disposition and final closure.

•Tire storage areas must be kept completely contained within fences that limit access.

•Rows between tire piles must be kept free of weeds and other vegetation.

•Each facility must display its emergency procedures plan and inspection approval by local fire enforcement agencies

•Establish dirt berm at the perimeter.

•Approach road to be maintained in good condition and passable by fire fighting equipment.

•Install lightening rods at highest point by piles.

•Tires should not be stored on an asphalt base.

•Adequate fire fighting equipment should be kept on site.

•All personnel should be trained on all fire related equipment.

Emergency Procedures

•A list of names and telephone numbers of individuals to contact in case of fire, flood or other emergencies.

•A list of emergency response equipment, maintained in proper operating conditions, and how it should be used during an emergency.

•A description of procedures to follow at the facility during an emergency.

•All tire disposal sites should be in compliance with all storage permitting requirements approved by the National Fire Prevention Association and local fire enforcement agencies.

FINANCIAL FORECASTS

Financial Data

This business plan was developed to introduce the company to prospective investors in order to obtain financing to facilitate the growth of this company. It is hoped the growth and profitability of the tire densification product line and the construction building block system as outlined in the attached financial projections will interest investors who want to help finance these exciting opportunities.

The financial forecasts for Earthbound present a conservative, yet realistic, estimation of the financial health of the company based on solid projections with respect to sales, expenses and profitabilty.

The financial forecasts are presented in 3 year phases, cash flow statements, present monthly projections of sales, expenses and cash reserves.

Currency and Rounding

The U.S. dollar is used throughout this document. The yearly financial forecasts are rounded to thousands of U.S. dollars. Some of the line items are affected by rounding errors.

Note to the Forecasts and Assumptions

These financial forecasts, as well as the underlying assumptions, present, to the best of the management’s knowledge and belief, the expected financial position, results of operations and cash flows for the forecasted period. The forecasts reflect management’s judgment, as of the date of this document, of the expected conditions and the expected course of action of NatureTrail. The assumptions described herein are those that management believes are significant to the forecast. There will frequently be differences between the forecasted and actual results, because events and circumstances do not occur as expected. Accordingly, the financial forecasts and assumptions should be used with caution as actual results may differ materially from those shown in these forecasts.

Sources and Uses of Funds

In these projections, Earthbound is planning to obtain a business loan or other form of investment totalling $200,000. Terms of this note include 12% interest over three years, payable quarterly from the initiation of the loan.

Sources and Uses of Funds Table

The following table shows forecasted sources of funds described in the Memorandum and the uses of funds during the initial two-year start-up phase.

Accounts Payable

Accounts payable balances are calculated based on selling, administrative and research and development expenditures. It is assumed that manufactured items are paid for upon receipt, although as Earthbound develops operating the company would probably take more credit with suppliers.

Accrued Liabilities

During the initial development phase of the company, founders took deferred compensation. These deferrals are included in this category and are repaid with the completion of the financing described in this memorandum.

Long-term Liabilities

These forecasts assume NatureTrail obtains $200,000 of debt in the first year.

Notes to the Balance Sheet

Cash

Cash balances grow as the business expands. No assumptions have been made in these forecasts for dividends, employee bonuses or cash reinvestment, although some form of distribution or reinvestment of excess cash is expected.

Accounts Receivable

Accounts receivable balances are calculated on a net 15 basis. All forecasted sales are credit card purchases (the majority) or check or money order, therefore bad debts are not expected and prompt payment can be assumed.

Inventory

Inventory is made up of finished goods as manufacturing will be sourced out. Inventory turnover is assumed to be 30 days.

Other Current Assets

This category includes deposits on manufacturing as well as other miscellaneous deposits. It is assumed that 50% deposits on manufacturing are required, although in reality, as the company develops operating history, this requirement would lessen.

Fixed Assets

Milling

1- Kerney Tracker #2 Horizontal Mill

1- Milwaukee #38 Horizontal Mill

1- Cincinnati #4 Horizontal Mill

1- Nichols Horizontal Hand Miller

2- Bridgeport Mill

2- Pratt & Whitney Tape-O-Matic NC

1- Pratt & Whitney CNC

Lathes

1- Harrison M400 CNC Lathe

1- Bardons & Oliver #3Turret Lathe

1- Herbert #5 Turret Lathe (Air Chuck)

1- American Turnmaster Engine Lathe 18 x 60 Gap 28 1- Lablond Engine Lathe 18” x 102

1- Mazak Engine Lathe 10” x 80”

1- Hitachi Seiki Turret Lathe w/Bar Feed

1- Gisholt Turret Lathe w/Air Chuck 24” Swing

Drill Presses

1- 6 Spindle Drill Press

2- Dayton Drills 1/2

1- 2 Spindle DRK

1- American Radial Arm Drill 5 x 13 Column 1- Hydraulic Pressure Tester (3,000 psi)

Presses

1-Rockford Punch Press 5 Ton

1- Rockford Punch Press 35 Ton

1- Mubea HPSN 35 Ton Iron Worker

1- Hydraulic Press 50 Ton

Notes to the Profit and Loss Statement

Because of the proprietary nature of the information contained in the income statements, management has elected to show only the number of units of each category of item sold and show the sales and cost of goods in aggregate form. Additional detailed information is available upon request. This information includes comprehensive cost breakdowns of each product and the associated pricing and revenue assumptions.

Sales

Sales are shown as gross, discounts are not anticipated at this time.

As discussed previously, management believes that given appropriate working capital, the scale-up these increases in sales volume represent are entirely realistic and entirely achievable in the marketplace. The foundation for growth after the end of three years will be dependent upon excellent relationships with material suppliers and through the development of industry contacts.

Unit Sales and Costs

The build-up of unit sales by category is provided in greater detail than net sales or manufacturing costs. As noted above, detailed unit sales forecast by product are available upon request. The units sales figures provide a concise picture of the growth of the business and the periods in which new product categories are introduced.

The most significant increase in terms of the scale-up factor is from year 1 to year 2. The most significant increase in terms of real units is the scale-up in volume between year 2 and year 3. The financing that this offering memorandum describes is designed to provide the resources to successfully manage both these transitions. The $200,000 of equity financing will seed this expansion and provide the funds to hire the personnel and develop the infrastructure that can take the company from a start-up to a well-coordinated operating company in the first 2 years.

Note to the Statements of Cash Flows

The statements of cash flow includes $26,000 of capital improvements to be financed through the $200,000 of new proceeds expected to be generated as a result of this prospectus.

Remaining monthly operating expenses conservatively reflect typical costs of doing business and the necessity to have an adequate budget for insurance, telecommunications, professional advice (legal, accounting) and advertising .