Exhibit X (BC403442)

La Vie de Chateau is a luxury lifestyle brand expansion of Catherine Michiels Fine Custom Jewelry, a California S corporation, and a well-established jewelry brand featuring the designs of Catherine Michiels. Retail clients include Ylang23, L’Eclaireur (in Paris and Tokyo) and Saks online with points of sale in twelve countries. Private clients and fans of Catherine’s creations include Halle Berry, Sandra Bullock, Sheryl Crow, Ellen DeGeneres, Johnny Depp, Helen Hunt, Scarlett Johansson, Angelina Jolie, Nicole Kidman, Julia Roberts, Sharon Stone, Uma Thurman, Naomi Watt and Kate Winslet.

The current Catherine Michiels brand includes bracelets, necklaces and rings selling from one hundred dollars up to forty-eight thousand dollars with an established clientele ranging from teenagers to women in their sixties and seventies. In 2005, sales volume of Catherine Michiels brand doubled that of 2004. In the first six months of 2006, the 2005 figures were more than doubled again achieving a 250% by end of year.

With La Vie de Chateau, Catherine will be expanding a profitable business that serves as a platform for growth to meet the demand from her clientele for a fuller product line of luxury goods and services including handbags, clothing, furnishing, objets précieux and a “lifestyle destination” in addition to her current line of jewelry.

Catherine learned jewelry making at the Arts & Métiers Institute in Brussels. She studied gemology and diamond grading at the prestigious High Council for Diamonds in Antwerp. After working in the magazine business for Marie Claire and Elle, and publishing her own bi-monthly Moderne, Catherine returned to the world of jewelry with a practical understanding of the luxury market and launched a line that has earned acclaim and helped spread her vision of spiritual and social responsibility around the world.

La Vie de Chateau will offer an affluent and discerning clientele access to the romantic “Chateau Life” as it is lived in the south of France; a romanticized lifestyle analogous to the idealized Americana Ralph Lauren has created with his Polo brand. The center of the operation will be an actual chateau (with modern conveniences) serving as a very exclusive chambre d'hôte (Bed & Breakfast) for clients wishing to have first-hand experience of the lifestyle while consulting with Catherine about their purchases. This is similar to the protocol observed by Ettore Bugatti whereby clients would check into Bugatti’s personal hotel across from the factory when placing an order for one of his extraordinary automobiles so as to have an audience with Le Patron.
The allure of living in the south of France has been documented and perpetuated in literature and film. Peter Mayle has made a career of providing the experience, vicariously, through his many books, some of which have been adapted to the screen (A Year in Provence, A Good Year). The film Under the Tuscan Sun owes its success to this same theme. With La Vie de Chateau, Catherine Michiels offers her clientele the possibility to experience the lifestyle first hand.

Objectives

1. Fulfill the demand from an existing clientele for an expanded range of Catherine Michiels luxury products.
2. Offer an existing and affluent clientele an experiential product including personal contact with Catherine in the context of an idealized séjour in the romanticized setting of a chateau.
3. Develop a mentoring relationship with a broad public that has already been established with private clients, which would include services and advice relating to personal luxury, interior design and travel in a manner analogous to the relationship Oprah Winfrey has established with her constituency.

Mission

To provide lifestyle accoutrements which are aesthetic and address the mind, body and spirit creating a personal rapport between the designer and the consumer in a top-to-bottom economic base.

Keys to Success

A successful incursion into the luxury product domain relies on the following:
• A well-defined and engaging personality as the icon for the brand
• Products that resonate the consumer to the degree they are willing to pay for the experience the product offers which exceeds the intrinsic value of the product itself.
• Developing loyal and repeat business with a clientele invested in the aesthetics and message of the product.
• Providing a continuation of product within a line to acknowledge and encourage the collector nature of the clientele.
• Providing the means for a continuing relationship between the brand and the client that is enhancing and provides a sense of participation with the designer.

.Products and Services

Jewelry, handbags, selected clothing, furnishings, objets précieux, personal consulting and a “lifestyle destination” chambres d'hôtes would constitute the initial brand offerings.

Additional Products & Services

A demand for the personal attention of Catherine Michiels amongst an affluent grouping of her clientele has manifested and takes the form of requests for personal assistance in choosing luxury products, advice on where to travel and where to stay, invitations to Catherine to guide them on personal buying and pleasure trips in Europe and other parts of the world and “social integration” into Catherine’s circle of friends and fellow artists. Services could include the furnishing of a house from top to bottom in a branded Vie de Chateau style. This interest comes as a result of Catherine’s expertise in the luxury domain and the personal connection her clients feel as a result of acquiring her unique designs.

Catherine has declined external offers in the past—to design the interior of a luxury hotel, for example. These design engagement offers, which would serve to extend the Catherine Michiels brand into new areas that have a luxury connotation, would now be welcome and pursued.

Market Analysis Summary

The number of American women on salaries of more than $100,000 a year more than tripled between 1991 and 2001. The growth in the proportion of women in the highest income bracket was nearly 10 times the rate at which women entered the full-time workforce during the decade.

At the same time the proportion of women in the upper income brackets was increasing, the proportion of women in the lowest income brackets were falling. The proportion of women who earned under $20,000 fell by over one-fifth during the same time.

An analysis of wage and salary data by the Employment Policy Foundation found that 861,000 women earned the equivalent of $100,000 or more in 2001 – the most recent year that data was available - compared with just 242,000 women in 1991.

There was a similar increase in the number of women in the next wage bracket, those earning between $80,000 and $99,999. And almost one in three women who entered the labor force during the 1990s earned more than $60,000. The figures mean that roughly one in every 48 working full-time earned over $100,000 in 2001 compares to one in every 143 women in 1991. Economist Regina Powers, who carried out the research, said that the figures are evidence that women are moving upward in large numbers, earning more than their mother’s generation did.

According to Pam Danziger of Unity Marketing, “Young affluents (the Generation X and Millennial generations) will play an increasingly important role in the target market for global luxury marketers over the next ten to twenty years. This is true not just in the United States (with a median age of 36.5 years) or in the European countries (where the median age ranges around 40 years old), but in the developing luxury markets, like Brazil (median age 28.2 years), India (24.9 years) and China (32.7 years), where the population as a whole is more youthful.”

Danziger’s studies find that from now until 2010, the number of affluent households and their influence will continue to grow. The rising tide of affluence is driven by the 78 million baby boomers that range in age from 40 to 58 years. This is the age of empty nesting, when consumers are earning the most money in their lives, but no longer have to stretch their paychecks across the demands of a growing family.

The target market for La Vie de Chateau is predominately working and/or affluent women whose disposable income is spent on lifestyle luxury items within their economic reach. At the high end of the range, we have women spending as much as $90,000 for a Kelly handbag by Hermès. At the lower end of the range, young women will spend $245 for a Louis Vuitton iPod case or $150 for a key holder.

According to Bill Curtis, chief executive of CurtCo Media publisher of the luxury lifestyle magazine the Robb Report, “The luxury market is not a matter of what something costs. It’s a matter of the entire visceral and emotional experience attached to it. It is about being inspired by products and services, whether that means hotels, boats, cars or jewelry.”

Here are some examples of brands that have followed an approach similar to that envisioned for La Vie de Chateau but without the provenance offered by Catherine Michiels:

Coach (NYSE: COH) has experienced rapid growth, from $500 million in revenues in 1997 to $2.1 billion in 2006 with no distribution in Europe though they are now pushing into Asian markets.

Ralph Lauren (RL) wholesale sales were up 19% in 2007 to $2.32B. This growth resulted from increased sales in Europe, the company's fastest growing region. Ralph Lauren will look to Japan for future wholesale growth. Retail sales were up 12% in 2007 to $1.74B. Ralph Lauren licensing royalties for 2007 dropped 4% to $236M as a result of bringing some product line in house.

Market Segmentation for La Vie de Chateau

The “Passé Antérieur Collection” (Past Perfect) addresses women 30 and upwards.

The “Dingue de Toi!” Collection (Crazy for You!) is aimed at women of the Generation X and Millennial generations.

The “Bob” line targets a male market that ranges, to quote Jack Daniels’ philosophy, from bikers to bankers though women are attracted to the “Bob” skull featuring its Mona Lisa smile.

Experience has shown that, in the case of Catherine Michiels designs, the products are often purchased initially by women but are quickly followed up with purchases by husbands, boyfriends, sons and brothers as the products tend to be appealing to both sexes. It is not unusual to see all the members of a family wearing Catherine Michiels jewelry.

Corporate Business

Contracts will be sought for Catherine Michiels design consulting amongst a corporate clientele in a variety of industries.

Competition

There are a great many luxury brands on the market today, mostly divided into two groups of ownership between the French LVMH and the Swiss Richemont Group. Often, the same designer will create products for many of the brands within a group, which can serve to blur the distinction of the individual brands. Few of the brands’ clientele have a feeling of rapport with the designer.

The entire Catherine Michiels collection is designed exclusively by Catherine Michiels and is the result of her experiences and observations about life. As a consequence, her designs offer exclusivity that are the very definition of luxury and which the competition finds difficult to produce. This is why senior executives at competing luxury brands often choose pieces from Catherine’s collection to give as gifts rather than the products offered by their firms. Catherine receives personal emails from consumers around the world who feel a bond with her via the purchase of a design though they have never met.

Strategy and Implementation Summary

To succeed with the expansion of the Catherine Michiels brand via La Vie de Chateau requires that:

The personal nature of the clientele’s rapport with the brand be acknowledged and nurtured. When a film offering a day-in-the-life view of Catherine in Venice and Paris was posted on her website, it was found to have created a closer relationship with an already dedicated public (See: www.catherinemichiels.com/video.html). Films of this sort must continue to play a role in maintaining and expanding a committed clientele.

The initial addition of high-line showcase stores (like the existing situations with L’Eclaireur in Paris and Tokyo, Louis Boston in Maine and Ylang23 in Dallas) is required to extend the presentation of the Catherine Michiels’ La Vie de Chateau collection in a context of luxury .

A “Vitrine/Bureau” would be established at the chateau as the atelier headquarters for the brand where clients and visitors may be received by Catherine in the manner that Ferrari owners made the pilgrimage to Maranello to visit the factory in the hopes of a meeting with Enzo Ferrari, himself.

The establishment of proprietary flagship Catherine Michiels stores in strategic locations such as Paris, Tokyo, Dubai, Beverly Hills, and Las Vegas would follow allowing for vertical integration and total control over the presentation of the product and the purchasing experience to be enjoyed by the clientele. The flagship stores would offer the entire product line; whereas the high-line showcase stores would sell those products that most align with their store profile.

The Internet would be fully exploited as a marketing, sales and delivery system with enhanced interactive components nurturing the special relationship between Catherine and client.

Duty-free outlets would be established for applicable products of the brand.

Licenses would be granted for mass production items (sunglasses, fragrances, etc,) where appropriate.

La Vie de Chateau expansion plans include offering a section of the product line through department stores with products ranging from apparel to home furnishings targeting a large demographic seeking high quality merchandise at lower prices.

Marketing Strategy

The marketing strategy that will be implemented consists of the following:

• Territory preparation prior to expansion launch using film, electronic press kits, multi-media and fashion editorial
• Targeted direct mail to existing private clients and retailers
• Private and open house launch parties at existing high-line showcase stores (Paris/Tokyo/New York)
• Periodic, but regular, release of positioning-statement documentaries personalizing the public’s relationship to the brand via Catherine.
• Strategic advertising

Sales Strategy

La Vie de Chateau sales strategy is based on developing a predictably increasing revenue stream from an expanded public reflective of the brand’s current clientele. Product offerings would expand to cater to the demands of existing high-end clients while offering products that allow a medium and lower income public to buy into the vision of Catherine Michiels. One way Catherine has accomplished this in the past was by offering her designs in bronze and silver in addition to white, yellow and rose gold. Licensing opportunities that would be used strategically to spread the brand’s identity and maximize its financial yield.

Catherine is already well known to many of the women and men who are the high-end customers for La Vie de Chateau. Managers for the flagship stores will be chosen for their understanding of the luxury domain as well as for their ties to the market demographic that will support the flagship by purchases of its product.

Contact:
Stephen Mitchell
818.380.3414
sm@catherinemichiels.com