OWNERS

BUSINESS NAME: BELL’S TRADING

ADDRESS: TYRELL AND MC COY STREET,
KINGSTOWN
ST. VINCENT & THE GRENADINES
TELEPHONE: 784-485-9178
EMAIL: mvbells@yahoo.com

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-2-
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by Bells Apartments in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of Mr. & Mrs. Foyle.

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means and
that any disclosure or use of same by reader, may cause serious harm or damage to Bell’s Apartments.

Upon request, this document is to be immediately returned to Bell’s Apartments.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a business plan. It does not imply an offering of securities.

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 TABLE OF CONTENTS
1 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.2 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
...................................................................
2 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
. . 3.1
. . . . . .Start-up
. . . . . . .Summary
. . . . . . . ......................................................................................................... 11
3.2 Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
...................................................................
4 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
. . 4.1
. . . . . .Service
. . . . . . Business
. . . . . . . .Analysis
. . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 15
...................................................................
5.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.1 .Sales
. . . . Forecast
................................................................... 17

6 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.1 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.2 .Key. . . Financial
. . . . . . . . Indicators
. . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 20
7.3 Break-Even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
7.4 .Projected
. . . . . . . .Profit
. . . . .and
. . .Loss
. . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 22
7.5 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
. . . . . . . . .Balance
7.6 Projected . . . . . . Sheet
. . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 25
7.7 .Business
. . . . . . . Ratios
. . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 26

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1.0 Executive Summary

Bell's Apartments is going to be a charming self contained residential community resort luxury
apartment complex strategically located in the Brighton Valley, on the outskirts of the main city
of Kingstown. The valley is renowned for its beauty and closeness to the Atlantic Ocean. The
area is also known for its concentration of livestock, farms and ranches.

Bell'
s Apartments is a residential business designed to meet the needs of the retired and disabled
people in the tourism industry.

The Apartments will be run by Chrispin and Avita Foyle. The founders and owners of Bell's
Trading Ltd. located in Kingstown St. Vincent. They bring to the table, their wealth of
experience in sustainable enterprise development.

Bell’s Apartments will be a division of Bell'

s Trading. Bell' s trading will design and build a
three-storey luxury apartment, which will consist of a total of 4 exclusive apartments. Two, two
bedroom apartments, One, three bedroom and One four-bedroom apartment. Each of these
Apartments would have 65% sliding glass doors and huge patios, which will provide a
breathtaking scenic view to the Ocean 1000yrds from its location.

Bell's Trading will offer time-share vacation ownership and personalized services to
retired/elderly people, disabled individuals, expatriates and business travelers. The Target
Geographic segments include European visitors, North Americans, Regional visitors, Locals (St.
Vincent & the Grenadines).

Chrispin and Avita Foyle, founders and owners of Bell's Trading Ltd. an International wholesale
and retail company, based in Kingstown, St. Vincent & the Grenadines, will run Bell' s
Apartments. Together, they bring a wealth of experience in sustainable enterprise development.

Bell's Apartments will be a division of Bell'

s Trading. Bell'
s Trading will design and build a
three-storey apartment complex which will consist of two exclusive three bedroom condo style
apartments, and one, two bedroom apartment with over 65% sliding glass doors and huge patios,
each apartment a work of art. These would provide a breathtaking scenic view of the Atlantic
Ocean, 1000 yards from its location.

Target geographic segments include European visitors, Regional visitors and locals looking for a
weekend getaway from the city hustle and bustle, and expatriates.

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 Highlights

$160,000

$140,000

$120,000

$100,000
Sales
$80,000 Gross Margin

$60,000 Net Profit

$40,000

$20,000

$0
2005 2006 2007

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 1.1 Mission

Bell'
s Apartments will be a division of Bell'
s Trading Ltd.

Bell's Apartments is an all inclusive vacation, recreation, property and timeshare provider.
Targeting specifically retired/elderly people, disabled individuals, expatriates, business travelers
and locals.

Bell'
s Apartments facilitates their target market efforts in leading independent lives by providing
them with an atmosphere, which embodies an integrated, balanced approach to health and
wellness.

By combining old-fashioned values, going the extra mile and differentiating the type of service
offered from that of the competition, this will assist not only in creating a Health and Wellness
awareness in the Tourism sector but also in building the Bell' s Apartments brand as a whole.
Bell's Apartments would attract a neglected market segment of travelers or visitors as well as
catering for the locals.

Bell’s Apartments brings to the community of Brighton, a new breath of air in the health and
wellness tourism sector.

It is also a priority of Bell'

s Apartments to make a comfortable living wage for its employees and
its owners.

Keeping in tune with the needs of the market, utilizing the latest technology trends, all the while
ensuring the client receives the individual attention they deserve, is the vision and daily mission
of Bell'
s Apartments. We exist to attract and maintain customers. When we adhere to this
maxim, everything else will fall into place. Our services will exceed the expectations of our
customers and ensure repeat business.

1.2 Keys to Success

Many factors will be critical to its success and future profitability.

Our keys to success include the commitment to quality by every person who is part of the team.

Each of us will be responsible to push ourselves to the higher level of professionalism in three
areas;

1.Consistent and accurate fulfillment of the client'

s wishes.
2.Competitve pricing for the quality of services offered.
3.Significant profit made on each booking.

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2.0 Services

The Bell' s Apartments is a small, attractive set of apartments that offers travelers a relaxed
setting for holiday getaways, change of scenery and a break from the hectic city life.

2.1 Service Description

The services Bell'

s Apartments will be offering is as follows.

1.AIRPORT PICK-UPS: Airport pickups will be arranged for visitors flying in.
Specialized pickups for disabled clients will also be available.
2.CAR RENTALS: Car Rentals can be arranged through Bell' s Apartments. If required
for weekends or longer periods.
3.SPECIAL GROCERY DELIVERY: The Bell' s Apartments will provide special
grocery delivery services that can meet any dietary restriction.
4.ORGANIZED TOURS AND EXCURSIONS: Bell' s Apartments organizes a variety
of tours for their guests, ranging from ecotourism to heritage tourism tours and
excursions to various locations on the Island.
5.HOUSEKEEPING SERVICES: Every apartment will have a housekeeping staff
assigned to them. This staff member will provide light housekeeping, laundry as well as
meal preparation.
6.CARE GIVER SERVICE PROVISION: Bell' s apartments will provide personalized
Care giver services if required. These services include but not limited to;

•Assistance with walking and getting in and out of bed.

•Companion/transportation to outings
•Medication reminders and supervision of medications
•Assistance for ambulatory individuals
•Care and Companionship
•Physiotherapy
•Massage therapy

VACATION BENEFITS

Along with the timeshare ownership, clients will receive all inclusive vacation membership
packages comprising of International Hotel discounts, meal discounts and mini vacations.

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2.3 Fulfillment

1.The principals of the business will provide the key fulfillment and delivery. The real
core value is customer care expertise, provided by a combination of experience, and
education.
2.For Physiotherapy and Massage Therapy, we will turn to qualified professionals for
outsourced service provision, which are areas that we can afford to contract out without
risking the core values provided to the clients.

2.4 Technology

Bell'
s Apartments will maintain the latest Windows, user-friendly computer systems for each
apartment. Capabilities including:
1.Complete email facilities on the Internet for clients.
2.Printing facilities

For the internal running of the apartments, Bells will maintain the following systems and
programs.

1.Computer with email/Internet which facilities working with clients directly through
email delivery of drafts and information.
2.Complete presentation facilities for preparation and delivery of multimedia
presentations on Macintosh or Windows machines, in formats that include on-disk
presentation, live presentation, or video presentation.
3.Complete desktop publishing facilities for delivery of regular retainer reports, project
output reports, marketing materials, and market research reports.
4.Customer Relationship Management Software ACT! to facilitate Customer bookings
and reservations.
5.Quick Books - to handle all recordkeeping and accounting.
6.Website

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3.0 Company Summary

Bell'
s Trading is a high-end trading firm with a reputation for integrity, quality and excellence in
management. Trading of dry goods, curios and commercial equipment between the USA,
Venezuela and Trinidad. In three years annual sales have increased to well over $250,000 XCD.

Chrispin and Avita Foyle founded and registered Bell' s Trading in Fort Lauderdale, Florida in
the year 2000. In 2001, a combination of activities involving trade in St. Vincent resulted in the
opening of the store, Bell'
s in Kingstown St. Vincent.

The company experienced steady growth since its inception, and incorporated in 2000. (See
Appendix for Articles of Incorporation).

The company has its address in leased premises at Tyrell and Mc Coy Street, Kingstown, St.
Vincent & the Grenadines.

The company' s short term objectives are to increase activities in all divisions, and to achieve
annual profit, net after taxes of $1,500,000 by 2007. Its Long-term objectives are to maintain the
level of current business achieved up to 2007, increase more regional trade and then to move into
Information Technology and enhanced service industry.

To implement some of these objectives, the company needs a loan of $600,000 EC.

This loan will be utilized for current near term expenses including Construction and furnishing of
Bell'
s Apartments, to be repaid in five years.

The prospects for Bell'

s Apartments continued growth are excellent.

For Equity, the company has assets valued at $1,000,000.00, additionally, the company'
s owners
are willing to offer as collateral, some personal assets.

Cash Equity $100,000.00

Land 55,560sq. $1,800,144.00
@$32.4xcdBequia
Kingstown Park $120,000.00
Florida- $406,500.00
Total $2,426,644.00

The company' s overall objective is to satisfy their market segments that demand integrity of
services, and to maintain a steady growth in sales volume that will sustain the company for over
twenty years.

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3.1 Start-up Summary

Table: Start-up

START-UP

REQUIREMENTS

Start-up Expenses
Legal $4,000
Stationery etc. $1,000
Advertising and Marketing $5,000
Consultants $10,000
Insurance $5,000
Satellite $4,000
Expensed Equipment/Construction $571,326
Material Contigency 5% $17,325
Construction Labour Contingency $9,625
Vehicle $30,000
Other Operational Costs $1,000
Total Start-up Expenses $658,276

Start-up Assets Needed

Cash Balance on Starting Date $41,724
Other Current Assets $0
Total Current Assets $41,724

Long-term Assets $0
Total Assets $41,724
Total Requirements $700,000

Funding

Investment
Owners Investment $100,000
Other $0
Total Investment $100,000

Current Liabilities
Accounts Payable $0
Current Borrowing $600,000
Other Current Liabilities $0
Current Liabilities $600,000

Long-term Liabilities $0
Total Liabilities $600,000

Loss at Start-up ($658,276)

Total Capital ($558,276)
Total Capital and Liabilities $41,724

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 Start-up

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0
Expenses Assets Investment Loans

3.2 Company Locations and Facilities

The Bell's Apartments offers an exquisite country setting Apartment complex with a view and
access to the Atlantic Ocean, just about 1000 yards from the site in the Valley of of Brighton.

The physical structure that houses the Apartment Complex will be specifically engineered to
please the most discriminating travelers.

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 4.0 Market Analysis Summary

Total Market Segmentation

Table: Market Analysis

Market Analysis
Potential Customers Growth 2004 2005 2006 2007 2008 CAGR
Retired /Disabled Tourists 3% 5,000 5,150 5,305 5,464 5,628 3.00%
Medical Students 3% 1,000 1,030 1,061 1,093 1,126 3.01%
Regional Travelers 3% 3,000 3,090 3,183 3,278 3,376 3.00%
Expatriates 3% 3,000 3,090 3,183 3,278 3,376 3.00%
Locals 3% 120,000 123,600 127,308 131,127 135,061 3.00%
Business Travelers 3% 5,000 5,150 5,305 5,464 5,628 3.00%
Total 3.00% 137,000 141,110 145,345 149,704 154,195 3.00%

Market Analysis (Pie)

Retired /Disabled Tourists

Medical Students
Regional Travelers
Expatriates
Locals
Business Travelers

NICHE MARKET
Potential Customers Growth 2004
Retired /Disabled Tourists 3% 3000
Medical Students 3% 500
Regional Travelers 3% 1,000
Expatriates 3% 3,000
Locals 3% 1000
Business Travelers 3% 500
Total 3.00% 9,000

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 MARKET NEEDS

Bell'
s Apartments provides its customers with a beautiful, relaxing, luxurious, country setting. The Bell'
s
Apartments seeks to fulfill the following benefits that are important to their customers:

1. Selection: The Bell' s Apartments will have different apartments, each with its own
unique, breathtaking view of the Ocean, and some facing the mountain.
2. Accessibility: The Bell' s Apartments is located within 10mins for the city of Arnos
Vale and 15mns from Kingstown. They will provide specialized transport services as
well as access to rental vehicles thus providing accessibility for visitors and guests.
3. Security: The bell' s Apartments is situated in an ideal country setting where clients are
encouraged to explore the areas and the acres of land that surround the area. In addition,
Bell's Apartments will contract the services of a Security Company to secure the premises
24/7.
4. Specialization: The Bell' s Apartments specialize in providing retired/elderly travelers
and disabled travelers vacation services. We provide specialized Caregiver services if
needed for some of our less advantaged travelers. The Bell' s Apartments provides each
guest with individual private apartments. They also would have an out-door patios and
gazebo that all travelers to socialize.
5. Customer Service: The Customers will be impressed with the level of service and
attention that they will receive.
6. Competitive Pricing: All rooms will be competitively priced and relatively similar to
traditional style hotels.

4.1 Service Business Analysis

What is Timeshare?

Timeshare is a form of holiday ownership. You own the right (either directly or through a
"club") to use a week (or longer) in an apartment or villa on a holiday resort for a great many
years or in perpetuity.
Over six million families own timeshare worldwide - the majority well satisfied with their
ownership.

Timeshare accommodation is generally of a much higher standard than hotel or rented

accommodation. And most resorts have extensive leisure facilities (almost always free to use).
All timeshare is self-catering.

Accommodation ranges from a modest studio (a single bedroom) to apartments and villas with
three bedroom, three bathrooms, lounge, dining etc. with appointments of an exceptionally high
standard.

Timeshare competes with package holidays (where timeshare offers higher standards of
accommodation) and villa rental (where timeshare can offer better long term value-for-money).

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Timeshare comes in two basic forms:

•Fixed week. Where you own rights to a specific week, usually in a specific
apartment/villa, which you can either return to every year or through the exchange system
for something similar in another part of the world and in another time period.
•Floating system (which includes points clubs). Instead of owing a specified week, you
own a week (or a time period which may be longer than a week) within a seasonal band
of time. Each year you have to book the specific week that you want - this is "subject to
availability".

A major strength of timeshare is the certainty that it provides. Accommodation (and often leisure
facilities) being held in trust (or registered in a public register) for the lifetime of the right to use.
So, provided that you continue to pay the annual fees on time, you are certain of getting your
holidays every year.
And when you tire of timeshare you can sell your rights on to someone else.

Most timeshare owners use the exchange system which provides an enormous choice (nearly
6,000 resorts in all the popular destinations worldwide) to swoop to - knowing that the place you
are going to is of a similar high standard to that which you own.

When you buy timeshare you pay a once off payment for the right to use and, each year, a fee
which pays for the accommodation etc. to be kept clean, in good order, local taxes paid etc.

The buying choices are:-

1. From a professional reseller.

• Gives you not less than 14 days cooling-off period
• Places buyer' s money (and sellers Ownership Certificate) in an independent stakeholder
account
• Certifies to the buyer that the week being purchased is free of all debt
• Confirms whether the week has been banked with an exchange company - and whether this
banking is available to the buyer
2. From the Owners Club, Management Company or a contracted agent

Many owners ask their Club (or Management Company) to sell their week. At resorts where the
developer has finished selling "new" weeks this is a convenient way for owners to sell and has
the benefit of allowing the buyer to see the resort on a try before buy basis before committing
themselves.

3. Directly from an owner.

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5.0 Marketing Strategy

There are effective strategies that will assure that the company will reach the greatest number of
potential customers. Bell's Apartments will turn prospects into customers through a variety of
marketing strategies.

Bell'
s Apartments has a four pronged strategy:

1. Advertising: A large number of visitors will look to their local and regional newspapers and
other publications for information about the different accommodations in the Caribbean. We
intend to advertise through various publications media.

2. Website/Online Marketing: Bell' s Apartment will use a comprehensive, full service website
that allows the visitors to view the Apartment Complex, read details about what it has to offer,
provide information on regional activities, even allow the visitor to book a reservation. With the
growing use of the Internet, the web has become an indispensable toll people have for planning
vacations to far regions. Apart from the establishment of web presence, Bell' s will make an effort
to utilize new marketing technologies to drive traffic to their website as well as other forms of
online marketing.

3. Direct Marketing: Bell' s Apartment would be producing their own publications such as
brochures and flyers and place them in strategic locations. Also Bell'
s would be involved in
Database Marketing as a medium for creating awareness about their services and facilities.

4. Strategic Relationships: Bell' s Apartment will develop a partnership with time-share vendors
and other international travel agencies. Agencies such as RCI will be targeted to facilitate time-
share exchanges. Also marketing agencies such as Intimate Hotels of Barbados will be targeted.

Also other local strategic relationships such as the Kingstown Medical College and St. Georges
University, Grenada will be important to assist students in need of accommodations. Other
strategic Alliances are currently being explored.

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5.1 Sales Forecast

The first five months will be used for the construction of the apartment complex to fully
accommodate guests. Once complete, the apartments will host four different apartments. There
will be little sales activity during this time. By month four, the Bell'
s Apartments will be ready to
go.

Chris and Avita Foyle will have already started advertising in newspapers and other forms of
media as well as formed a strategic relationship with timeshare vendors. The university and other
institutions by month two, so business will ramp up quickly.

Table: Sales Forecast

Sales Forecast
Sales 2005 2006 2007
2-2 bedroom $59,620 $61,546 $63,534
1-3 bedroom $19,512 $20,142 $20,793
1-4 bedroom $18,970 $19,583 $20,215
Maintainance Fees $49,055 $50,639 $52,275
Total Sales $147,157 $151,910 $156,817

Direct Cost of Sales 2005 2006 2007

Operating Cost $24,000 $24,775 $25,575
Other $0 $0 $0
Subtotal Direct Cost of Sales $24,000 $24,775 $25,575

Sales Monthly

$14,000

$12,000

$10,000

2-2 bedroom
$8,000
1-3 bedroom
$6,000 1-4 bedroom
Maintainance Fees
$4,000

$2,000

$0
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

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 Sales by Year

$160,000

$140,000

$120,000

$100,000 2-2 bedroom

1-3 bedroom
$80,000
1-4 bedroom
$60,000
Maintainance Fees
$40,000

$20,000

$0
2005 2006 2007

6.0 Personnel Plan

Apart from the proprietors Mr. and Mrs. Foyle, on payroll, they would hire a Receptionist who
will also serve as a Secretary, in charge of reservations and bookings.

There will be 2 housekeepers hired for each Apartment at $500/mth.

A gardener will also be hired.

24hr security will be provided for by an outsourced security agency.

Table: Personnel
Personnel Plan
2005 2006 2007
Chrispin Foyle $9,600 $9,600 $9,888
Avita Foyle $9,600 $9,600 $9,888
Receptionist/Secretary $7,200 $7,200 $7,416
Gardener $6,000 $6,000 $6,180
24hr Security Personnel x 2 $18,000 $18,000 $18,540
Housekeeper $4,800 $4,800 $4,944
Total People 7 7 7
Total Payroll $55,200 $55,200 $56,856

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7.0 Financial Plan

This section will offer a financial overview of Bell'

s apartments as it relates to the marketing
activities. Bell'
s Apartments will address the break-even analysis, sales forecasts; expenses
forecast and how those link to the marketing strategy.

The main financial objective is to grow for each future year.

Timeshare owners would pay an upfront deposit for their timeshare unit plus all owners would
share maintenance fees, management fees and costs to upkeep common areas such as pools.
Time Share ownership arrangements would be a combination of the following; fixed unit, fixed
week, deeded agreement, floating agreement, right to use plan or a lease agreement.

The remainder of the time, Bell'

s Apartments will be rented to other target groups.

7.1 Important Assumptions

Operating Inflows
Sales
Sales revenues constitute the majority of the cash inflows for this project. There are three main
factors to consider when estimating sales revenues
• The capacity available,
• The selling price, and
• The timing of the sales

These are all crucial factors to valuing this project.

Allowing two weeks for maintenance and transition time between customers, we then multiply
fifty weeks by the total number of units (4 Rooms) to find the possible capacity (200 vacation
weeks).

However, the average capacity of time-share resorts within the Caribbean is 75%. We assume
comparable pressures on St. Vincent for annual repairs, cannibalization of units, and excess
occupancy. Therefore, the likely capacity for the Bell’s Apartments Time share project is 80
vacation weeks (.75*200).

The Bell’s Apartments will set the confirmation of a per unit sales price.

We have taken weighted averages of seasonal prices in order to derive a single price for each
type of unit.
Hotels charge normally about $70US/night $70-$100US

Timeshare Blocks - Minimum 1 week block.

2 bedroom *2 = $250 ($500)
3 bedroom = $300
4 bedroom = $350
Finally, we have made estimates regarding the timing of contract sales.
- 19 -
While largely a subjective exercise, we feel that our estimates are reasonable. Based on the
premise that marketing efforts may require deals such as complimentary three-day vacations, we
have estimated the maximum number of sales contacts on a weekly basis to be slightly higher
than two times the total number of units.

In addition, a sales period of 40 weeks attempts to account for seasonal variations. By

contracting with an outside timeshare sales company, this volume is likely to be sustained.
According to RCI 20-25% of all sales contacts result in a sale. Assuming a 20% closing rate, we
are able to estimate yearly sales at 80 vacation weeks per year. These estimates result in reaching
75% occupancy rates by year 5.

Maintenance Revenues
These inputs were estimated based upon Caribbean timeshare averages.

50% of the cost per room/mth

2 bedroom *2 = $500 = ($1000)US
3 bedroom = $600US
4 bedroom = $700US

Peak periods - October-April – Tourist season.

July –August – Regional Visitors (Carinval)

Table: General Assumptions

General Assumptions
2005 2006 2007
Plan Month 1 2 3
Current Interest Rate 8.00% 8.00% 8.00%
Long-term Interest Rate 0.00% 0.00% 0.00%
Tax Rate 15.00% 15.00% 15.00%
Sales on Credit % 20.00% 20.00% 20.00%

Calculated Totals
Payroll Expense $55,200 $55,200 $56,856
Sales on Credit $29,431 $30,382 $31,363
New Accounts Payable $86,836 $88,208 $89,425

7.2 Key Financial Indicators

Collection days are very important. We estimate about 20% of sales to be given on credit due to
the use of booking with credit cards.

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7.3 Break-even Analysis

Break-even Analysis

$15,000

$10,000

$5,000

$0

($5,000)

($10,000)
$0 $7,000 $14,000 $22,000 $29,000 $36,000

Monthly break-even point

Break-even point = where line intersects with 0

Table: Break-even Analysis

Break-even Analysis:
Monthly Units Break-even 4
Monthly Revenue Break-even $12,962

Assumptions:
Average Per-Unit Revenue $3,600.00
Average Per-Unit Variable Cost $2,000.00
Estimated Monthly Fixed Cost $5,761

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7.4 Projected Profit and Loss
Table: Profit and Loss

Pro Forma Profit and Loss

2005 2006 2007
Sales $147,157 $151,910 $156,817
Direct Cost of Sales $24,000 $24,775 $25,575
Other Costs of Sales $0 $0 $0
------------ ------------ ------------
Total Cost of Sales $24,000 $24,775 $25,575
Gross Margin $123,157 $127,135 $131,242
Gross Margin % 83.69% 83.69% 83.69%
Expenses:
Payroll $55,200 $55,200 $56,856
Utilities $12,000 $12,000 $12,000
Payroll Taxes $1,932 $1,932 $1,990
------------ ------------ ------------
Total Operating Expenses $69,132 $69,132 $70,846
Profit Before Interest and Taxes $54,025 $58,003 $60,396
Interest Expense $48,000 $48,000 $48,000
Taxes Incurred $904 $1,500 $1,859
Net Profit $5,121 $8,503 $10,536
Net Profit/Sales 3.48% 5.60% 6.72%
Include Negative Taxes TRUE TRUE TRUE

Profit Monthly

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

($4,000)

($5,000)
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

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 Profit Yearly

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$0
2005 2006 2007

Gross Margin Monthly

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$0
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

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 Gross Margin Yearly

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
2005 2006 2007

7.5 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash Flow 2005 2006 2007

Cash Received
Cash from Operations:
Cash Sales $117,726 $121,528 $125,453
Cash from Receivables $24,065 $30,209 $31,184
Subtotal Cash from Operations $141,791 $151,737 $156,638

Subtotal Cash Received $141,791 $151,737 $156,638

Expenditures 2005 2006 2007

Expenditures from Operations:
Cash Spending $55,200 $55,200 $56,856
Payment of Accounts Payable $79,427 $87,968 $89,177
Subtotal Spent on Operations $134,627 $143,168 $146,033

Subtotal Cash Spent $134,627 $143,168 $146,033

Net Cash Flow $7,164 $8,569 $10,604

Cash Balance $48,889 $57,457 $68,062

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 Cash

$60,000

$50,000

$40,000

$30,000
Net Cash Flow
$20,000 Cash Balance

$10,000

$0

($10,000)
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

7.6 Projected Balance Sheet

Table: Balance Sheet

Pro Forma Balance Sheet

Assets
Current Assets 2005 2006 2007
Cash $48,889 $57,457 $68,062
Accounts Receivable $5,366 $5,539 $5,718
Other Current Assets $0 $0 $0
Total Current Assets $54,455 $63,203 $73,993
Total Assets $54,455 $63,203 $73,993

Liabilities and Capital

2005 2006 2007
Accounts Payable $7,409 $7,648 $7,895
Current Borrowing $600,000 $600,000 $600,000
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $607,409 $607,648 $607,895

Long-term Liabilities $0 $0 $0
Total Liabilities $607,409 $607,648 $607,895

Paid-in Capital $100,000 $100,000 $100,000

Retained Earnings ($658,276) ($653,154) ($644,652)
Earnings $5,121 $8,503 $10,536
Total Capital ($553,154) ($544,652) ($534,116)
Total Liabilities and Capital $54,255 $62,996 $73,780
Net Worth ($552,954) ($544,445) ($533,902)

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 7.7 Business Ratios
Table: Ratios
Ratio Analysis
2005 2006 2007 Industry Profile
Sales Growth 0.00% 3.23% 3.23% 0.00%

Percent of Total Assets

Accounts Receivable 9.85% 8.76% 7.73% 0.00%
Inventory 0.37% 0.33% 0.29% 0.00%
Other Current Assets 0.00% 0.00% 0.00% 100.00%
Total Current Assets 100.00% 100.00% 100.00% 100.00%
Long-term Assets 0.00% 0.00% 0.00% 0.00%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 0.00% 0.00% 0.00% 0.00%

Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
Total Liabilities 0.00% 0.00% 0.00% 0.00%
Net Worth 100.00% 100.00% 100.00% 100.00%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 83.69% 83.69% 83.69% 0.00%
Selling, General & Administrative Expenses 80.21% 78.09% 76.97% 0.00%
Advertising Expenses 0.00% 0.00% 0.00% 0.00%
Profit Before Interest and Taxes 36.71% 38.18% 38.51% 0.00%

Main Ratios
Current 0.09 0.10 0.12 0.00
Quick 0.09 0.10 0.12 0.00
Total Debt to Total Assets 1115.44% 961.42% 821.56% 0.00%
Pre-tax Return on Net Worth -1.09% -1.84% -2.32% 0.00%
Pre-tax Return on Assets 11.06% 15.83% 16.75% 0.00%

Business Vitality Profile 2004 2005 2006 Industry

Sales per Employee $21,022 $21,701 $22,402 $0
Survival Rate 0.00%

Additional Ratios 2005 2006 2007

Net Profit Margin 3.48% 5.60% 6.72% n.a
Return on Equity 0.00% 0.00% 0.00% n.a

Activity Ratios
Accounts Receivable Turnover 5.48 5.48 5.48 n.a
Collection Days 58 66 66 n.a
Inventory Turnover 0.00 0.00 0.00 n.a
Accounts Payable Turnover 11.72 11.53 11.33 n.a
Payment Days 28 374 381
Total Asset Turnover 2.70 2.40 2.12 n.a

Debt Ratios
Debt to Net Worth 0.00 0.00 0.00 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital ($552,954) ($544,445) ($533,902) n.a
Interest Coverage 1.13 1.21 1.26 n.a

Additional Ratios
Assets to Sales 0.37 0.42 0.47 n.a
Current Debt/Total Assets 1115% 961% 822% n.a
Acid Test 0.08 0.09 0.11 n.a
Sales/Net Worth 0.00 0.00 0.00 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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