Terri Fargo Jonathan Scharffenberg Sally Arizaga Ramon Perez Christian Machado

19. Terri Fargo Jonathan Scharffenberg Sally Arizaga Ramon Perez Christian Machado Gold Compass Travel Travel. In the right direction.

20. Mission Provide customers with a unique and personalized vacation planning experience in a manner that reflects our passion for travel and commitment to superior customer service.

21. Vision Our vision is to facilitate the creation of positive life experiencesthrough travel.

22. Concept • Luxury Vacation Planning Specialists • Customer Value Through • “Above and Beyond” Service • Customer Database • Destination Packets • Vacation Debriefing • Seminars

23. Concept • Convenient Access • Store Location • Web site • “House Calls”

24. Organization and Management • General Partner and Manager • Terri Fargo • Limited Partner and Agents • Sally Arizaga • Christian Machado • Ramon Perez • Jon Scharffenberg • Augmented by Advisory Board

25. Industry • Industry Overview • Travel Agencies: SIC 4724 & NAICS 561510 • Travel & Tourism- 3rd Largest Retail Industry • Overall Travel Expenditures $679.4 billion in 2006

26. Industry • Industry Characteristics & Trends • Mature and growing at 2.9% • Consolidation of Industry • Declining Commissions = Service Fees • Industry Competitors • Online (Expedia and Priceline.com) • Local Markets

28. Market • 44% Increase in Millionaire Households Since 2003 • Increased Luxury Consumer Spending in 2006 • 3.8% of income • $56,000 estimated in 2006

31. Target Market • Individuals Age 30-50 • College Educated • Married • Three Categories • Near Affluent • Affluent • Super-Affluent • Highest Mean Income: El Dorado County & Placer County

32. Customer Profile • Affluent Traveler • Less likely to book online • Want convenience • Want to be “educated”

33. Customer Profile • Seek Experience Rather Than Material Goods • Enjoyment & pleasure • Quality of life • Relaxation & stress relief • “Making memories” • 6 trips per year • Almost $26,000 on travel

34. Sales Forecast • National Market • 33,000 establishments • $59.5 billion • State Market • 5,785 establishments • $7 billion

35. Sales Forecast • Local Market • 223 establishments • $196.4 million • .45% penetration • $900,000 in revenue • Gold Compass Travel • .15% penetration 1st year • $288,708 in revenue

36. Start-Up Capital • Owner Injection • General Partner - $500 • Limited Partners - $7,000 each • Total = $28,500 • Loans • $55,000 the 1st year • 1st year only interest payments • 2nd year start paying the principal on the loan

37. Credit Financing • $200,000 Line of Credit • Amortized over 30 years at 8.25% interest with a balloon after 6 years

38. Use of Funds • Rent & Tenant Improvements • Tenant improvements $7,800 • Rent $16,000 • Salaries • $80,000 • Technology • $6,110

39. Use of Funds • Marketing • $28,565 • Licenses & Certificates • $5,355

40. Growth Rate

41. Revenue Year 1= $288,708 Year 2= $363,525 Year 3= $398,865 Year 4 = $430,776 Year 5 = $465,238 Net Income Year 1= $18,580 Year 2= $91,754 Year 3= $107,731 Year 4 = $117,109 Year 5 = $135,583 Revenue and Net Income

42. Total Assets • Year 1 = $135,849 • Year 2 = $253,727 • Year 3 = $368,605 • Year 4 = $496,774 • Year 5 = $642,538

43. Profitability • 5 Year Annual Average • Return on Investment = 80% • Gross Profit Margin = 90% • Net Profit Margin = 23%

44. General Partner Terri Fargo 30% equity position Limited Partners Christian, Jon, Ramon, Sally 17.5% equity position each = 70% Allocation of Profits and Losses

45. Exit Strategy • Remain in business • Alternative: • Sell at the end of year five • No less than balance sheet value of $642,538 • DCF Valuation of expected cash flows

46. Thank you for viewing our presentation QUESTIONS?