Canada Ltd. has a successful history of shipping and selling products to US customers. US customers begin to inquire about the availability of US warranty and service facilities for foreign made products. The volume of Canada Ltd.’s sales is not such that will support the formation of a wholly owned subsidiary.

Canada Ltd. engages the services of a US warehouse who offers “virtual offices,” mail forwarding and a 1-800 number. Service issues continue to be handled by Canada Ltd. in Canada through the US warehouse street address.

In the interests of security and confidentiality the entity names contained in the these
cross border transactions are fictitious.