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New Zealand. It exports mainly to Australia, Germany, Japan and New Zealand.

Once again established infrastructure and trade routes within the region,

tourism and the climate, make this country’s accessibility applicable for our

product. Primarily an English speaking island, Fiji also allows Oceana to be a

standardized product.

All of these islands and countries, including Australia and New Zealand, have

the same principle religions. These are Catholic, Protestant, Muslim, and few

native island beliefs.

Intellectual property laws in Australia

A joint venture has been established so our license is already in place. A

patent is pending for the three gold, silver, and bronze coloring agents. This

patent will be exclusive for a period of five years before renewal. Our

trademark name that for our product is Oceana Gold, Oceana Silver and Oceana

Bronze.

Trade Relations APEC and ANZCERTA

ANZCERTA is trade agreement between Australia and New Zealand.

(Australia New Zealand Closer Economic Relations Trade Agreement)

ANZCERTA has been around since 1983, when it replaced their NAFTA, and has

undergone significant changes in industrial and agricultural trade. Free trade

between these countries has enabled rapid development in world exporting. At

this time the process of improving air transportation and expanding trade laws

is underway. The goal of ANZCERTA is to become a single trade entity

representing a unified economic front. In the next ten years they hope to

remain committed to the same economic goals and effectively compete with the

Asian Pacific region through their alliances to the commonly known APEC (Asian

Pacific Economic Cooperation).

APEC is the formation of trade alliances among 18 countries in the south pacific

region of the world. The leaders of these countries meet regularly to discuss

ways of improving liberal trade and creating a more open environment. Australia

has been active with this alliance since 1989. One of the benefits of

Australia’s involvement is that the economies of the different countries range

from underdeveloped to industrialized countries. Our product will be marketed

in a diversified economic range, enabling us to reach more than one specific

market. Skin cancer and environmental issues are discussed at these meetings

and concern all leaders of the different governments. APEC hopes to reach free

trade as already established by GATT.

Political risk

There are no governmental policies or parties who could politically overrun the

government, therefore, expropriation is not a major consideration. The concern

for nationalism is also unwarranted because Australians have hopes of attaining

the “American good life.” Our image as a nation demonstrates a positive public

relation between two countries.

Joint Venture (unincorporated)

A foreign company deciding to do business in Australia has a selection of

business structures available. The most common forms of organizations are

representative offices, branches of parent companies’ subsidiaries, sole trades,

partnerships and joint ventures. Joint ventures in Australia are a very common

business practice, with some differences in structure from that of the United

States but they are similar enough for American investors to comprehend.. An

unincorporated joint venture may be described as “contractual”, meaning that a

separate entity is not formed. Shares are not allocated for payment of any

kind; and they end up resembling a partnership. Incorporated joint ventures are

companies that have shareholders with no rights to the company’s assets; which

are not exposed to sharing losses, but which do participate in distributed

dividends. Legal restrictions are limited and private companies operate

basically uninterrupted as long as established ethical business codes are

followed. Any company that registers in Australia falls under their corporation

law jurisdiction. Hybrid forms of joint ventures can be created to meet the

demands of each participant involved. After having carefully reviewed our

options, we chose the unincorporated joint venture with a company whose name and

reputations are established.

Our Partner

Australians are very demanding regarding timely delivery, product warranties

along with consistent advertising and promotions. They are proven to be very

quality conscious and discerning. The decision to pursue a joint venture was to

limit initial investment and operating expenses, limit liability/lower risk and

ease into the market via a company well aware of the culture and infrastructure.

Our partner company is F.H. Faulding & Company Limited, positioned in Parkside,

South Australia, Australia. They possess the capacity to meet our company

objectives (production and distribution) and are aligned with our corporate

ideals and values. F.H. Faulding has an 11 year financial history of

established success in all facets of production management, distribution and

customer trust. Combined with their current assets, desire for growth and

development, they are very attractive to Sun Cosmetics, Inc. as an

unincorporated joint venture partner for Oceana. Their location is significant,

and of strategic importance to the actual distribution of our product.

Distribution

Our joint venture partner will enable us to use their

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