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

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.

Vision Our vision is to facilitate the creation of positive life experiences through travel. Our vision is to facilitate the creation of positive life experiences through travel.

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

Concept Convenient Access Convenient Access Store Location Store Location Web site Web site Web site Web site “House Calls” “House Calls”

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

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

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

Gold Compass Travel Zoe’s Cruises & Tours AAATravelStore Target Market High income, educated travelers High income, educated travelers Princess passengers AAA Members Business Travelers Operation s 5 agents - 1 location 8 agents – 1 location 6027 agents – 1066 locations 280 agents - 25 locations CustomerService Customer satisfaction through personal service 87% customer referral Complaints:  Unprofessional  Difficult to get information Members only Complaints:  Unprofessional  Problems with travel planning  Did not resolve customer complaints Awarded “Leader in Luxury Travel”

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

During the last 12 months have you: Household Income $100K+$150K+$200K+ Purchase any luxury product 89%92%97% Purchased any luxury service 85%87%93% Purchased travel 57%64%68% Purchased electronics 56%59%66% Purchased fragrance/beau ty products 43%46%45% Purchase maid service 37%45%63%

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

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

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

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

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

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

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

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

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

Growth Rate

Revenue and Net Income Revenue 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

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

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

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

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

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