Kaslong Retirement Community Project

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Chiangrai Wellness Co., Ltd. 279/89 Mu 3, Tambol Robvieng, Amphur Muang, Chiangrai Province 57000 – Thailand

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

DISCLAIMER

Chiangrai Wellness Co., Ltd , has prepared this business plan (BP). The information contained herein is confidential and proprietary and by accepting a copy of this confidential proprietary BP, the recipient agrees not to copy, reproduce, distribute or permit disclosure to others of this BP, in whole or in part, without the prior written consent of KASALONG HOME and that it will keep confidential all information contained herein not be issued to public and will use this BP solely for the purpose of evaluating a possible investment to KASALONG HOME or raising funds to KASALONG HOME and for no other purpose whatsoever. The projections and pro forma results contained in the BP represent the best estimates of management by KASALONG HOME made based on information presently available. They are subject to judgments, assumptions, and contingencies, many of which are beyond KASALONG HOME ability to control and actual results may vary significantly from projections. None of the information, data, forecasts, projections, or descriptions contained herein is warranted. Representations and warranties will make only in a definitive investment agreement to be negotiated and executed between KASALONG HOME and an investor or lender. Accordingly, KASALONG HOME shall not be liable for any misstatement contained herein and for the omission of any information, which may be material. This BP shall remain the property of KASALONG HOME and shall be returned upon the request of KASALONG HOME.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

CONTENT Executive Summary ................................................................................................................ 5 Introduction ........................................................................................................................... 10 Goal & Objective ................................................................................................................... 11 Objective ..................................................................................................................................... 11 Mission ........................................................................................................................................ 11 Key to Success ........................................................................................................................... 12 Company Summary .............................................................................................................. 12 Company Ownership .................................................................................................................. 12 Start-up Summary....................................................................................................................... 13 Investment Plan .................................................................................................................... 14 Capital Utilization ........................................................................................................................ 15 Loan Liquidation Plan ................................................................................................................. 18 Project Description................................................................................................................ 19 Location....................................................................................................................................... 19 Zone ............................................................................................................................................ 21 Feature ........................................................................................................................................ 26 Construction Plan........................................................................................................................ 31 Technology.................................................................................................................................. 32 Future Products and Services .................................................................................................... 32 Marketing Strategy................................................................................................................ 34 Market Needs.............................................................................................................................. 34 Market Trends ............................................................................................................................. 34 Market Growths........................................................................................................................... 35 Segment Strategy ....................................................................................................................... 35 Market Segmentation.................................................................................................................. 35 Main Competitors........................................................................................................................ 37 Strategy and Implementation Summary ............................................................................... 37 Strategic Advantage ................................................................................................................... 38 Marketing Strategy...................................................................................................................... 39 Sales Strategy............................................................................................................................. 41 Sales Forecast ............................................................................................................................ 42 Milestones ................................................................................................................................... 44 Management Summary ........................................................................................................ 45 Organizational Structure ............................................................................................................. 45 Management Team..................................................................................................................... 47 Management Team Gaps ........................................................................................................... 48 Financial Analysis ................................................................................................................. 49 General Assumptions ................................................................................................................. 49 Break-Even Analysis................................................................................................................... 50 Salary & Wage Rate ................................................................................................................... 52 Sales Cost & Operating Expenses ............................................................................................. 56 Rent & Service Charge Rate ...................................................................................................... 60 Pro-forma Cash Flow .................................................................................................................. 62

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Pro-forma Profits & Losses......................................................................................................... 64 Pro-forma Balance Sheet ........................................................................................................... 66 Ratios Analysis ........................................................................................................................... 68 Financial Benchmark .................................................................................................................. 70

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Executive Summary Project Name International Retirement & Health Care Project (Kasalong Home) Project Owner Chiangrai Wellness Co., Ltd. (CWC) Project Location 198 Mu 15, Tambol Pa Or Donchai , Muang District, Chiangrai – Thailand. Project Area 250 rais. (100 acres) Total Investment Sum $ 32,404,203

Funding Required $31,863,662 Project Description KASALONG HOME is currently in the first stages of purchasing the land near the city of Chiangrai, to construct KASALONG HOME , an International Retirement Community & Health Care Project to facilitate an international long staying ,rehabilitating and health servicing to senior, retired persons and general tourists. The implementation and construction of the project building & providing the other facilities, KASALONG HOME estimated the cost of the project approximately $32,404,203 and will complete the project construction within 14 months upon the funds are available. KASALONG HOME will consist of Health Resort Hotel (for guest - 150 Units), Senior House & Condo (200 Units) and Senior Nursing Home (100 units). All units are fully furnished with furniture, and modern household appliances such as microwave oven and refrigerator, and bathroom with toiletries, full range of linens and towels. For personal entertainment, a stereo with CD player and color television with cable satellite are provided in each room. KASALONG HOME will also furnish all room with Hi-Speed Internet to let the occupants to access internet any time they want. For safety and peace of mind, KASALONG HOME building has heat & smoke detectors, a sprinkler system are equipped in every room and area , CCTV 24-hour security guards & reception services.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

KASALONG HOME will also provide facilities to customers are as follows: • • • • • • • • • • • • • • • • • • • • • •

SPA & Sauna and Beauty Salon Shop Jacuzzi Thai & Chinese Traditional Massage Thai & Chinese Alternative Medicine Doctor Physical Clinic International Dental Clinic Mind Control Center Naturopathy Ayurvedic Doctor Holistic Health SPA Therapy Exercise & Fitness Center Nutritious Food Shop & Restaurant Natural Food Center Club House & Swimming Pool Seminar Courses relating to Healthy & Alternative Medicine Doctor Courses. International Conference Hall Rehabilitation Center for Foreign Elder Person Senior House for Retirement Person Guest Hotel Mini Theater Church and Mosque

Investment Plan KASALONG HOME had already invested the amount of $594,595 as a registered capital investment, which having been paid amount of $54,054 for the cost of the surveying of the project feasibility study, legal costs, stationery and expenses associated with opening our head office in Chiangrai province. KASALONG HOME is seeking finance from any lender or JV partner the amount of $31,863,662. With this amount, KASALONG HOME can start at once to purchase the land and begin the project construction, which it will be completed within 14 months. Loan Utilization KASALONG HOME will utilize the loan in the project are as follows: 1. Cash Flow 2. Construction & Infrastructure

$ 3,918,919 $ 16,256,757

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

3. Long Term Assets

$ 5,810,757

4. Equipment, Furniture and Vehicle

$ 5,877,230

Total

$ 31,863,662

KASALONG HOME will pay the interest at 5% maximum per annum. KASALONG HOME will pledge the project itself as assets against the loan amount. The loan principal shall be liquidated annually and will be discharged within 15 years. Why is “KASALONG HOME”? Due to the rapid increasing number of senior persons from over the world which consist of retired persons, senior persons from various countries in the world e.g. Japan, Korea, Taiwan, USA, Canada and Europe, caused their governments of those countries having their policies to support these people with plan and budget to spend their life comfortably at the end of their life by touring or living in foreign countries with inexpensive cost, like Thailand since the cost of living is cheaper than those host countries. Furthermore, Thailand is a beautiful and scenic country. The people are charming, the food is extraordinary and the life style and the good transportation links in this strategically well-located country to do business, touring or living in the region have attracted many expatriates and retirees. Thailand for its part welcomes foreigners both as tourists and on a more long-term basis. Additionally, Thailand is now promoting the country as a retirement location and has instituted long-term visa provisions for retirees in order to encourage foreigners to retire in the country. As of all above factors, inspired KASALONG HOME to engage into a business of International Retirement and Health Services as well as to provide with the First Class Health Resort Hotel, Senior House and Senior Nursing Home to accommodating and facilitating the senior retired persons, and other tourists as aforesaid above, hence became the name of “KASALONG HOME”. Market Segmentation Kasalong Home’s main consumer base will be primarily foreigner senior & retirees from Scandinavia, Western Europe, North America and Japan. These segment customers are usually looking for higher end health living facilities that foster a safe, enjoyable, and convenient environment. They are technology savvy and have a desire to have access to the health amenities that we provide. The largest segments that Kasalong Home expects are senior tourists from Scandinavia, Western Europe, and North America. We expect to get 60% segment for this group. The second market segment is the disable & sick persons from Japan and other countries which we expect 30% for this segment.. The last segment is general tourist worldwide including Thai people. We expect to get 10% for this segment.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Marketing Strategy Kasalong Home emphasizes on 7 Ps marketing strategy, which they are: 1. 2. 3. 4. 5. 6. 7.

Products: Price: Place: Promotion: People: Process: Package:

Must Be Essence and Excellence. Must Be Fairly & Competitive Must Be Convincingly & Apparently Must Be Perpetually & Progressively Must Be Courtesy & Hospitality Must Be Accurately & Validity Must Be Interesting & Stimulating

Current Prospective Client: We are under negotiating with Korea consulting company name below to provide CWC a one year contract( with extendable every one year) to accommodate and facilitate their 200 senior Korean citizen. They are ready to sign contract wit CWC and will reside the community at once upon the completion of our project construction. Consulting Company: President : Managing Director : Office Address : Mobile Email

K.T.C.C. Co., Ltd Mr.Lee, You-Hyeon Miss Hong Ji-Hee 95/4 Mu 8 Baan Klang Krung Office Park Ladphrao 71, Naknivas Rd, Ladphrao, Bangkok 10230 : +666 3969 443/ 666 106 1417 : [email protected]

Financial Forecast Below is shown the Financial Forecast of the project for 15 years financial plan ( in US$). Sales Value Sales Cost & Expenses Operating Profits Operating Profit Margin

: : : :

Internal Rate of Return (IRR) : Net Present Value (NVP) : (15 Yrs -5% Discount) Pay Back Period :

477,138,384 173,109,044 304,029,340 58.64% 20.98% 73,658,902 Within 5 years

Management Team Chairman: Managing Director:

Dr.Witoon Nirooktisan (Physician) Mr.Cheeravit Pongsatayachon

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

General Manager: Alternative Medical Doctor: Thai Medical Doctor: Chinese Medical Doctor: Senior Health Care Manager: Physical & Recreation Manager: Nutrition Manager: SPA & Beauty Manager: Room Manager: Marketing Manager: Accounts & Finance Manager: Food & Beverage Manager:

(Health Administrator) Mr.Ekawat Pookum (Hotel Administrator) Dr.Siritorn Cholitakul (Physician) Miss Mukda Chantaneeya (Physician) Qiu Y Qiang (Physician) Mrs. Alongkorn Chaengcharoen (Nurse) Miss.Kanokporn Homnan (Physicalist) Mrs.Rewadee Rouyam (Nutritionist) Mrs.Pasinee Sathirat (SPA Specialist) Mr.Peerasak Bancheun (Hotel Administrator) Miss Porttip Nantachai (Marketing) Mrs.Patcharee Bussabok (Accountant) Mr.Tanasilp Kongtiang (F & B)

Advisor Team Alternative Medicine Doctor: Chinese Medical Doctor: Senior Nutrition: Health & Beauty: Overseas Market Mental Health: Senior Nursery Care:

Dr.Petchara Lorvithaya Health Promotion Clinic – McCormick Hospital Mr.Suthisak Pavorathisan Chinese Medical University of Chen Du Mr.Vatcharapol Thamkoon Food Scientist , U.K Dr.Vithan Thanavuth Chulalongkorn University Mr.Kevin Lee Mr.Visit Wungvinyu Mrs.Ounchai Songkroh Health Educator 9

Contacted Person: Mr.Thanaphol Sangseelueb Project Consultant Tel:/Fax: +662 938 1522 Mobile: +6686 883 4024 Email:[email protected]

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Introduction Linked to the health-and-holiday concept is the promotion of long-stay visitors, with is mainly targeted at getting retirees from countries that have harsh winters and a higher cost of living to stay for extended periods in Thailand, where it is both warmer and less expensive. Thailand owes much of its international popularity to the remarkable variety of its natural attractions. On offer is a tremendous choice of settings – blissful beaches and islands, rugged hills and jungles, teaming rivers and waterfalls. Now a related product of this diverse environment, the country's rich natural healing heritage has started to attract a new generation of discerning tourists. With the increasing international popularity of health centered holidays, Thailand is pushing to the fore its world-renowned traditional massage, herbal steam baths, healing arts, meditation, aromatherapy, yoga, acupuncture, cookery and beauty treatments, as will as an ever-expanding selection of worldclass spas. Longer stays are the order of the day as visitors seek not just to experience these healthy ways fleetingly but to absorb maximum benefits over an extended period, while at the same time experiencing the country's history and culture at a deeper level. Once the process of rejuvenation and enlightenment starts to bear fruit, the logic of making this choice becomes beautifully apparent and quite irresistible.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Goal & Objective

Financial Plan

160,000,000

140,000,000

120,000,000

100,000,000

Capital Sales Value Net Incomes Outstanding Loan Cash Balance Equity

80,000,000 US$ 60,000,000

40,000,000

20,000,000

0

-20,000,000 1

2

3

4

5

6

7

8 Year

9

10

11

12

13

14

15

Financial Plan (15 Years) Objective Our main objective at preliminary stage is as follows: 1. To provide housing community that is affordable for seniors. 2. To create a living environment that encourages healthy aging, independence and self determination 3. To foster a sense of community within our housing project. 4. To be the premier provider of Communities of Care and Wellness for seniors. Mission 1. To provide the best possible quality of life for each individual who chooses to make Age Care Communities of Care and Wellness their Home. 2. To provide high-quality, comfortable rental Long Stay and Nursing Home units offer state-of-the-art living conditions reflective of the rapid advancements in technology and a growing need for quality housing. KASALONG HOME is dedicated to a hassle

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

free-living environment in which our tenants can enjoy all of the benefits of safe, attractive, and inviting units. Unlike many other realty companies that are solely concerned with turning profits, our primary objective at KASALONG HOME is to maintain the highest level of customer satisfaction that is achievable. Tenant safety, happiness, and comfort are our main goals. KASALONG HOME maintains competitive market prices, while working toward expanding the number of units rent, and increasing total earning. 3. Within the company we will strive to work as a cohesive, harmonious unit focused on exemplifying our mission. Just as customer satisfaction is an intricate part of KASALONG HOME success, so is employee satisfaction. That is why the founders of KASALONG HOME believe that employee satisfaction will make the company a success and will be the key to their longevity. 4. Initial focus will be to develop a buildings complex to meet Long Stay Accommodation Standards and increase long-term assets and income. Housing units will predominantly be located in the community neighborhood targeting both foreigners and local customers. KASALONG HOME fosters the ideals of the importance of tenant needs along with healthy and understanding relationships and a professional commitment to satisfaction. Key to Success 1. We endeavor to provide our residents with the most caring, home-like environment possible while maintaining respect and dignity, and while promoting independence through personal choice 2. We are committed to the provision of high quality care for our residents and ongoing support for family and loved ones. 3. We encourage community involvement in our activities and we reach out to welcome others to participate in our community. 4. We strive to create a supportive community atmosphere and retirement lifestyle with regular recreation and special events to enhance our residents' enjoyment of life and companionship Company Summary Chiangrai Wellness Co., Ltd.(CWC), created as a Company Limited based in Chiangrai Province, Thailand. It will be owned by its principal investor, Mr.Cheeravit Pongsatayachon, is acting the Managing Director and holds a 50% stake in the company, Dr.Witoon Nirooktisan is acting the President and holds a 20% , Mrs.Alongkorn Chaengchareon is acting the Finance Director and holds a 20% share of the company. The other 10% is held by silent investors. Company Ownership Chiangrai Wellness Co., Ltd., is registered as a Law Juristic Entity under the Civil & Commercial Law. by its Founder and the Managing Director, Mr.Cheeravit Pongsatayachon, the experienced businessman and health tour provider.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Start-up Summary

Start-Up Financing ฿40,000,000

฿30,000,000

฿20,000,000

฿10,000,000

฿0 Expenses

Assets

Investment

Loans

Start-Up Financing Plan

The total start-up expenses (including legal, stationery, brochures, consultants, expensed equipment, and other) come to 54,054 . Start-up assets required $28,242,041 in long-term assets to purchase a land, land improvement cost, construction, purchase tools, equipments, furniture, and vehicles. We also need cash $300,000 for inventory items and $3,862,162 for cash flow to handle the architect, legal fees and administration & marketing prior to opening and reserve for operating cost during the construction period and the operating cost for the first year of project operation. Long-term assets of $28,242,041 and long-term liabilities of $31,863,662 are anticipated. The details are described as shown below. Start-Up Financing Plan Legal Stationery etc. Brochures Consultants Insurance Rent Research and development Expensed equipment Other ---------------------Total Start-up Expense

$13,514 $1,351 $0 $1,351 $0 $0 $16,216 $10,811 $10,811 $54,054

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Start-up Assets Needed Cash requirements Start-up inventory Other Short-term Assets Total Short-term Assets

$3,862,162 $300,000 $4,162,162

Long-term Assets ---------------------Total Assets

$28,242,041 $32,404,203

Total Start-up Requirements: Left to finance:

$32,458,257 $

Start-up Funding Plan Investment Owner Invested Capital Other Total investment

$54,054 $540,540 $0 $594,594

Short-term borrowing Unpaid expenses Short-term loans Interest-free short-term loans Subtotal Short-term Borrowing Long-term Borrowing Total Borrowing

$0 $0 $31,863,662 $31,863,662

Loss at start-up Total Equity Total Debt and Equity

($54,053) $540,541 $32,404,203

$0

Investment Plan KASALONG HOME had already invested the amount of 594,595 as a registered capital investment, which having been paid amount of 54,054 for the cost of the surveying of the project feasibility study, legal costs, stationery and expenses associated with opening our head office in Chiangrai province. KASALONG HOME is seeking finance from any lender or JV partner the amount of $31,863,662. With this amount, KASALONG HOME can start at once to purchase the land and begin the project construction, which it will be completed within 14 months. KASALONG HOME will pledge the project itself as assets against the loan amount.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Capital Utilization

Capital Utilization Implementating Expenses 7% Vehicles 2%

Cash Flow for Operation 6%

Land Purchase & Development 19%

Tools & Equipments and Furniture 16%

Construction 45% Infrastructure 5%

Capital Utilization

The capital amount of $32,404,203 shall be utilized in the project for the following: Capital Utilization Description Owner Land Purchase & Development 270,270 Construction Infrastructure Tools & Equipments and Furniture Vehicles 27,027 Implementating Expenses 143,243 Cash Flow for Operation 100,000 Total 540,540

Loan 5,810,757 14,635,135 1,621,622 5,278,378 598,851 2,178,379 1,740,541 31,863,662

Total 6,081,027 14,635,135 1,621,622 5,278,378 625,878 2,321,622 1,840,541 32,404,203

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

The project owner will invest 540,541 from his part and needs more $31,863,662 from Lender or JV Partner.

Item 1

2

3

Use of Capital Funds Description Unit Land Purchase & Development 1.1 Land 250 rais @ $ 16,216 250 20 1.2 Street inside the project (Km) Kms. 1.3 Land Hill Development 4 Hills 1.4 Gardening & Landscaping Construction 2.2 Senior House 150 2.3 Senior Condominium 50 2.4 Nursing Home 100 2.5 Guest Hotel 150 2.6 Restaurants 3 2.7 Leader Apartment 30 2.8 VIP House 3 2.9 International Dental Clinic 1 2.10 Ayurvedic Clinic 1 2.11 Chinese Medical Clinic 1 2.12 Physical Clinic 1 2.13 SPA & Beauty Salon 1 2.14 Club House 1 2.15 Health Shop 1 2.17 Coffee Corner 4 2.18 International Conference Hall 1 2.19 Mini Theater 1 2.20 Staff Apartment 200 2.21 Office Building, Reception Hall 3 2.22 Swimming Pool 3 2.23 Senior In-door Sport Building 1 2.24 Store 1 2.25 Laundry 1 2.26 Internet Service Center 1 Infrastructure 3.1 Electric System & Solar Cell 3.2 Water Supply System 3.3 Drainage & Waste Water Treatment 3.4 Waste & Garbage System 3.5 Security System 3.6 Communication, Satellite, TV, Telephone 3.7 Computer Software

Amount

Total

4,054,000 945,946 540,541 540,541

6,081,027

2,702,703 810,811 1,891,892 3,243,243 405,405 81,081 40,541 540,541 216,216 216,216 216,216 675,676 675,676 135,135 54,054 810,811 270,270 540,541 270,270 162,162 540,541 40,541 40,541 54,054

14,635,135

270,270 270,270 540,541 135,135 162,162 162,162 81,081

1,621,622

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

4

5

6

7

Tools & Equipment and Furniture 4.1 Hotel, Condo, Senior House, Nursery Home, Office etc. 4.2 Health Care Services 4.3 SPA 4.4 Kitchen 4.5 Dental Clinic 4.6 Thai, Chinese, Physical Doctor Clinic 4.7 Clubhouse 4.8 Health Shop 4.9 Coffer Corner 4.10 Conference Room 4.11 Mini Theater 4.12 Church, Mosque 4.13 Spot 4.14 Library 4.15 Laundry 4.16 Staff Quarter 4.17 Director Office 4.18 Office Vehicles 5.1 11 Passengers Van 5.2 Ambulance Car 5.3 Sedan Car 5.4 Pick-up Truck 5.5 Sedan Car (Guest) 5.6 Multi Purposes Car 5.7 Motorcycle 5.8 Bicycle 5.9 Electric Bicycle 5.10 Golf Car Implementation Expenses 6.1 Funding Consultant Fee 6.2 Temporary Office 6.3 Architecheral Design 6.4 PR, Advertising & Marketing Cash Flow for Project Operation 7.1 Salary & Wage for 2 years 7.2 Inventory 7.3 Others

350

4 1 3 1 1 4 1 1 2 1 1 1 1

6 2 5 4 3 2 7 35 8 2

540,541 1,351,351 270,270 75,676 1,351,351 135,135 405,405 27,027 27,027 270,270 54,054 13,514 135,135 54,054 135,135 27,027 270,270 135,135 625,878 210,811 189,189 67,568 75,676 27,027 44,595 5,405 2,365 3,243 10,811 1,700,000 270,270 270,270 81,081 540,541 300,000 1,000,000

Total

5,278,378

625,878

2,321,622

1,840,541 32,404,203

Breakdown of Capital Utilization

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Loan Liquidation Plan The loan terms shall be 15 years and will be liquidated within 14 years with 1 year grace period during the construction of the project. The interest rate will be 5% per annum and shall be payable in arrears annually. The loan principal shall be payable annually until the loan completely liquidated. For venture capital, KASALONG HOME is ready to negotiate with JV partner for their terms and conditions as well as the equity proportion holding in the project. The Loan repayment shall schedule as follows:

Loan Repayment Schedule Loan Amount: 31,863,662 Interest Rate: 5% Loan Term: 15 years Year Interest Principal 1 Grace Grace 2 1,593,183 1,000,000 3 1,543,183 1,000,000 4 1,493,183 1,000,000 5 1,443,183 2,000,000 6 1,343,183 2,000,000 7 1,243,183 2,000,000 8 1,143,183 3,000,000 9 993,183 3,000,000 10 843,183 3,000,000 11 693,183 3,000,000 12 543,183 3,000,000 13 393,183 3,000,000 14 243,183 3,000,000 15 93,183 1,863,662 13,604,564 31,863,662

Balance 31,863,662 30,863,662 29,863,662 28,863,662 26,863,662 24,863,662 22,863,662 19,863,662 16,863,662 13,863,662 10,863,662 7,863,662 4,863,662 1,863,662 0

Loan Repayment Schedule

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Project Description KASALONG HOME is a project that provides an “International Long Stay Villa for Health Promotion and Recreation” for foreign customers who are seeking the living comfortable location with fully health facilities which focusing to the senior and retired person worldwide who willing to reside their end of life in Thailand.

KASALONG HOME is located in Chiangrai Province; the northernmost province of Thailand is about 842 kilometers north of Bangkok. Situated on the Kok River basin, Chiangrai covers an area of approximately 11,678 square meters with an average elevation of 580 meters above sea level. The province, which is located within the renowned Golden Triangle area where Myanmar, Laos and Thailand converge, is also known as the gateway to Myanmar, Laos and Southern China Historically, Chiangrai, was founded in 1262 by King Meng Rai, was the first capital of the Lanna Thai Kingdom (Kingdom of a million rice fields), which was later conquered by Burma. It was not until 1786 that Chiangrai became a Thai territory and was proclaimed a province during the reign of King Rama VI in 1910. Today, Chiangrai is a traveler’s paradise endowed with abundant natural tourist attractions and antiquities; the province itself is evidence of past civilization. Attractions range from magnificent mountain scenery, ruins of ancient settlements, historic sites, Buddhist shrines and ethnic villages as the province is also home to several hill tribes who maintain fascinating lifestyles. For those interested in the natural side of Chiangrai, jungle trekking is recommended along various trails. Location

Mae Sai Golden Triangle Project Site Airport Wad Rong Khun

Site Map

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

The project is located on the beautiful landscape area of 250rais (100 acres) at Tambol , Muang District, Chiangrai Province, 22 km. from Chiangrai International Airport and 8 km. from Chiangrai city. The project location is surrounded with a beautiful mountain landscape and lake which is suitable to develop it as a “ Retirement Community” to accommodate and facilitate both short stay and long stay customers with fully facilities of health services and recreation amenities.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Zone

Project Zone

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

The project is provided into 4 zones to facilitate the customers as follows: 1. Health Zone Consists of SPA Therapy, Beauty Salon, Naturopathy Clinic, Thai & Chinese Traditional Medicine Doctor, Alternative Medicine Doctor, Ayurvedic Doctor, International Dental Clinic, Holistic Health Clinic, Thai & Chinese Massage, Qi-Gong Therapy, Swimming Pool, Sauna, Club House, Natural Foods Center, Health Products Shop, Fitness Center, Nutritious Foods Shop & Restaurant etc.

SPA & Health Zone Perspective

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

2. Hotel Zone This zone provides a 4 stories deluxe hotel - 150 rooms, 2-3 bedrooms, to facilitate both general short stay and long stay customers. The charge rate about 160-210 /person/day.

Hotel Perspective

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

3. Senior Residence Zone: This zone will consist of 150 houses & condominium 50 units, 100-150 m2 . The rental rate of house between $1,486-3,243 per month and condominium rental rate is $1,486 per month.

Condo

Condo & Senior House Perspective

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

4. Nursing Home Zone: This zone consists of 2 stories building - 100 units nursing home for older person and disable person both Thai citizen and foreigner. The rental rate is $1,757 per month.

Senior Nursing Home Perspective

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Feature

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Perspective View of Project

KASALONG HOME offers the spacious comfort of a private residence with the security and services of a hotel. With a vast variety of room types from Studio, to Family Suite, there is always the right one to suit client’s preference. All rooms have private balconies and are equipped with standard hotel's facilities including air-conditioners, bath rooms with separated bath tubs and shower rooms with hot and cold water, TV with 40 international cable programs, mini bars with fridges, IDD telephones and in-room electronic safes. All units have well appointed kitchen and dining corners. The kitchens include large fridges, hot plates, hoods, sinks, microwave ovens and a full selection of chinaware, cutlery, glassware, pots and pans. KASALONG HOME also has comprehensive amenities are as follows: • • • • • •

SPA & Sauna Jacuzzi Thai & Chinese Traditional Massage Thai & Chinese Alternative Medicine Doctor Physical Clinic Dental Clinic

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

• • • • • • • • • • • • • •

Mind Control Center Naturopathy Ayurvedic Doctor Clinic Holistic Health SPA Therapy Exercise & Fitness Center Nutritious Food Shop & Restaurant Natural Food Center Club House & Swimming Pool Seminar Courses relating to Healthy & Alternative Medicine Doctor Courses. International Conference Hall Rehabilitation Center for Foreign Elder Person Mind Control Room Car Park Lot.

Services Offered : • • • • • • • • • • • • •

All meals Laundry Housekeeping Maintenance Communal lounges Communal dining rooms Activities and outings Church services Hairdressing services Financial service Day Care Mini Theater Indoor Spot

Health Care Services: • • • • • • •

Registered Nurses, Care Aides - 24 hours Dietician Minister Physiotherapist Pharmacist Medical Physician Dentist

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

• •

Podiatrist Recreational Therapist

Services Schedule : • • • • • • •

24 hour staffing (care staff on site at all times). Staff can respond to any emergency situations that may arise, day or night. Three meals per day (served in our dining room) Weekly housekeeping (including bed change, suite cleaning, removal of garbage Weekly laundry service (personal as well as flat linens) Activity and recreation programs Assistance with bathing, medications, dressing, monitoring (all as required) Transportation (our own bus) for shopping, outings

Activity Program: KASALONG HOME provides customers with the following activity programs: 1.

2. 3. 4. 5.

Physical & Recreation: Health Massage, SPA, Sauna (Infrared), Acupuncture Treatment, Hydro Therapy, Qi-Gong Therapy, Herbal Therapy, Aerobic Dance, Thai Classical Dance, North-Eastern Classical Dance etc. Mind Control: Meditation, Memory Reconciliation, Music for Health, Singing, Games etc. Educational Courses : Health, Diabetes, Bone & Joint, Feet Treatment, Nutrition, Cooking for Health etc. Special Courses: Weight Control, Loss Weight, Rehabilitation, Beauty Course, Administrative Course, First Born Nursery Course etc. Special Tour: Golden Triangle, Doi Mae Sa Long , Doi Tung Palace, Phu Chee Fah, Myanmar Border (Ta Khee Lek)

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Activities Program

Construction Plan

KASALONG HOME will implement the project construction at once upon receiving the funds from lender or JV partner. The construction will be completed within 14 months.

The construction works plan will be as scheduled in the Construction Plan below. Construction Plan Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Description Surveying, Designing, Engineering System Contractor Contract Land Developing, Layout Foundation & Piling 1st Floor 2nd Floor 3rd Floor Roof Structure & Roofing Laying & Plastering, Door & Window Ceiling Sanitary & Electricity System Floor & Wall Painting Interior Decorating & Furniture Gardening & Road Clearing and completing

Nov

Dec

Jan

Feb

Mar

Apr

Month May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Construction Plan

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Technology KASALONG HOME will have the most up-to-date technology provided both to the customers and to the subcontractors and other clients. 1. 2. 3.

Ethernet ports and/or modem jacks will be installed in each unit developed by KASALONG HOME. Access to a 24-hour copy/fax center located on the premises. Each unit will contain an emergency panic alert that will automatically go through to the manager and the local police department.

Future Products and Services In the future, KASALONG HOME will look to give each department within the company the opportunity to become a more independent entity. This will make expansion efforts more efficient, and will provide specialists in their departments the chance to become more focused in their field. We are in the process of conducting surveys in order to determine the best possible markets for hospital to facilitate the occupants and the people in the KASALONG HOME community. Market Analysis Summary Below charts shown the number of old ages population of the world and the foreign retirees touring into the Kingdom of Thailand. Increasing Number of Old Age Population 1970-2150.

Source: UN Population Division Department of Economic and Social Affairs

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Number of Old Age Population of Various Countries 1997. Country USA Japan Germany U.K. France Italy Spain Netherlands

Population 267,955,000 125,717,000 84,068,000 58,610,000 58,470,000 57,534,000 39,244,000 15,653,000

Old Age Population 55,913,000 35,221,000 23,846,000 14,971,000 14,678,000 16,559,000 10,257,000 3,603,000

Old Age % 20.9 28.0 28.4 25.5 25.1 28.8 26.1 23.0

Source: US Bureau of the Census, International Data Bas Number of Senior Citizen & Senior Retirement Touring to Thailand1996-2000

Senior Citizen Come to Thailand between 1996-2000 1996 1997 1998 1999 2000

1,126,800

1,115,661 1,170,832 1,347,157 1,422,496

Person

Person Person Person Person

Senior Retirement Come to Thailand between 1996-2000 1996 1997 1998 1999 2000

135,856 124,255 156,546 174,865 167,424

Person Person Person Person Person

Source: TAT

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Marketing Strategy Market Needs KASALONG HOME has surveyed the market needs of this section, have found that the utmost needs came from: 1. Retirees from various countries with particular emphasis on the Japanese & Korea market; the European market such as British, German, Dutch, and Scandinavian; the overseas Chinese market and those from the rest of the world. 2. Snowbirds, those who will come from cold countries during their winter season , like Korea and Sweden. These people have already come to Thailand to enjoy seaside activities, rural/mountain hill-tribe life and to enjoy exciting and adventurous experiences for two to three weeks. Some are using Thailand as a hub to travel to nearby countries such as Myanmar, Laos and Cambodia (Indochina). 3. Students and trainees from overseas are in this group. Thailand has some economic advantages that many international schools choose to operate their affiliations or branches to teach foreign students in various subjects. Students may not be big spenders but their presence would generate other income for the country. 4. The fourth group is for those who attend sports training camps. Many sports training associations have come to Thailand and brought along their coaches and athletes to conduct their programs at different sites around the country. Those are the main market segmentation of our products and services. Market Trends In accordance with a government policy to promote the tourism industry as a means to direct foreign currency into the country and consequently to improve the economic status, the Tourism Authority of Thailand (TAT) has created several programs and activities to promote Thailand as a major travel destination and to expand the current markets to cover the niche segment. Due to these ongoing promotions by TAT, the numbers of tourists coming into Thailand have increased every year. However, when taking into consideration the average length of stay in Thailand for the past five years, there has been a decrease of approximately 1.43% per year. Therefore, TAT has realized that it should expand its markets to include those tourists who spend a long period of time in the country. These kinds of tourists will consequently spend more money during their stay in Thailand. Not only for directing more income into the country, the promotion to this market will also strengthen the country's economic status as well as expand the production and service sectors relating to this industry. Therefore, TAT has promoted and developed Long Stay Tourism in Thailand by proposing the issues facilitating the arrival procedures for aged tourists (55 years and above) to the Cabinet. On 7 and 14 July, 1998, the Cabinet approved the proposal in principle and approved its details to be in practice on 8 September, 1998.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Later, on 26 June, 2001, the Cabinet approved the proposal by the Minister to the Prime Minister's Office (Mr.Somsak Thepsutin) to promote Long Stay Tourism and to set up a National Committee to support this program. The Minister to the Prime Minister's Office will be the Chairman of the Committee while other government authorities will support the program On 25 December, 2001, the Cabinet approved the establishment of the Thai Long Stay Management Corporation Limited. to promote the program through the Supply Chain Management System. The corporation will be situated at the TAT office at Ratchadamnoen Nok Avenue, Bangkok. Market Growths The market for high quality, reasonably priced rental units has been growing at a rate of 6.7% since 2000. Long Stay area's rental rates have remained even, averaging 2,030 or 16.22 per square meter, during the fourth quarter of 2004. The Chiangrai properties market is experiencing rapid employment growth that is fueling demand for accommodation, but not many new units are emerging. Not only is KASALONG HOME pioneering this particular niche of affordable quality living and amenities, but also it is capitalizing on the strength of the current economic growth in Chiangrai. Segment Strategy We believe that our unparalleled level of quality and technological amenities put KASALONG HOME into a niche of its own. This will be the focal point of all our marketing and advertising efforts. These segments are also easily reached through local newspapers and publications, as well frequent open house displays. It is essential for KASALONG HOME patrons to understand that their needs are our priority.

Market Segmentation

Target East ภายในประเทศ นักบริJapan หาร-นักธุรกิจ ผูสูงอายุ Taiwan

West ตางประเทศ นักบริ หาร-นักธุรกิจ United ผูสงู อายุ England

สตรีทKorea รี่ ักความงาม

มูลGermany นิธ-ิ สมาคมสุขภาพ

ขาราชการชั ้นผูใหญ Malaysia

สหภาพแรงงาน Italy

ผูทSingapore ี่มปี ญหาสุขภาพ

นักทองเที่ยว France

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Market Segment By Countries

Market Segment By Group Educational Group 5%

Training Group 5%

Disable & Sick Person Group 30%

Japan & Other Countries 30%

Senior Group 60%

Thai 10% Scandinavi a, Western Europe, North America 60%

Market Segmentation

KASALONG HOME will target four distinct customer segments by groups and countries are as follows: By Group 1. Senior Group: -

Elder Persons & Retirees from various countries with particular emphasis on the Japanese & Korea market; the European market such as British, German, Dutch, and Scandinavian; the overseas Chinese market and those from the rest of the world. This group will spend their “End-Of-Life” for Touring and Rehabilitating. Most of these people will stay longer time or for whole life in the country where less expensive.

-

We target 60% segment from this group.

2. Disable Group: -

Disable or sick person who has no relative to take care and wish to come for curing and treatment.

-

We target 30% segment from this group.

3. Educational Group: -

-

Students and trainees from local people and overseas who want to attend the educational courses or special health courses. This group may not be big spenders but their presence would generate other income for the country We target 5% segment from this group.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

4. Training Group: -

-

The fourth group is for those who attend sports training camps. Many sports training associations have come to Thailand and brought along their coaches and athletes to conduct their programs at different sites around the country. We target 5% segment from this group.

By Country -

The largest segment is Scandinavia, Western Europe, and North America. We expect potential customers from this segment 60%.

-

The second segment is Japan, Korea and other countries. We expect potential customers from this segment 30%

-

The last segment is Thai. We target 10% for this segment.

Market Segment Analysis Potential Customers Retired & Elder Person Disable & Sick Person Snowbirds

Target 60% 30% 10%

Potential Countries Scandinavia, Western Europe And North America Japan, Korea & Other Countries Thai

60% 30% 10%

Total

100%

Main Competitors Due to there are a few enterprises who do the Long Stay business in Thailand where are in Bangkok, Phatumthani, Karnchanaburi, Rayong and Chiangmai, so there are a few competitors and those ones not our direct competitor. Strategy and Implementation Summary KASALONG HOME emphasizes on 7 Ps marketing strategy, which they are: 1. Products:

Must Be Essence and Excellence.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

2. 3. 4. 5. 6. 7.

Price: Place: Promotion: People: Process: Package:

Must Be Fair & Competitive Must Be Convincingly & Apparently Must Be Perpetually & Progressively Must Be Courtesy & Hospitality Must Be Accurately & Validity Must Be Interesting & Stimulating

Strategic Advantage Location • •

Thailand is in the hub of international air travel. Climatically, there is plenty of sunshine and in different parts of the country, the climate conditions can be chosen all year round.

Natural Beauty •

There are traditional ways of life in rural areas, mountains, beaches and worldrenowned tourist attractions in the North and South. Thailand is also surrounded by interesting countries such as those in Indochina.

Cultural Heritage •

Thailand is a mixed culture with a multi-racial community who has been living in harmony over the past centuries without any major conflict. Many historical sites have been declared World Heritage by UNESCO.

•

Thailand is a democratic country governed by Rule of Law. People live under the constitution which protects individual rights as in any civic society.

Safety

Cost of Living •

•

Despite the survey conducted by some travel magazines, Thailand is still one of the best choices for tourists in terms of the cost of living. We estimate that 1,486 a month for luxurious condo is a sum that visitors can enjoy life quite well in Chiengrai. In the provinces, the cost would be relatively less except in Chiang Mai, Pattaya and Phuket. Long Stay visitors are not short-term tourists. They do not go to five-star hotel for accommodation, or meals. They would rather try to live like the local people if we can show them how.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Quality of Living •

•

Thailand has been an open society since the Sukhothai era. Foreigners and Thais enjoy freedom of speech and freedom of thought. When tourists come here, there would be many choices for them to choose and see in every day life. Thailand is now a modern society with plenty of entertainment facilities, public utilities and other facilities of an international standard. These can make tourists feel at home provided that we add conveniences for them such as foreign language signboards in public places. A proposal concerning the improvement of the hot-line service to tourists and on the state-of-the-art technological interactive website is in the process under the new scheme.

People and Services Available •

•

Tourism development has been promoted by the government for four decades. The tourism industry has provided jobs and other opportunities to many other related industries. It becomes a major income contributor supported by millions of service personnel. Thailand has a capacity both in hardware and software to accommodate the increasing number of short-term and long-term tourists. Long Stay tourism is a new opportunity opening up for many categories of industry.

Marketing Strategy Marketing in a highly competitive long stay housing industry depends on the recognition of excellence, as well as a point of difference to display our units in an individualized light. KASALONG HOME will build a reputation upon these components. We will develop and provide a living environment of unmatched proportion. It starts with the commitment to customer satisfaction and fulfilling their demands. Our commitment to quality and comfort includes safety and 24-hour customer service. The aspect of our living developments that differentiate KASALONG HOME from all other companies is our focus on maintaining the most advanced technological innovations on the market for our tenants. Positioning Strategy For people who desire high-quality living with all the technological amenities available, only KASALONG HOME real estate developer will be able to fulfill their needs and desires at an affordable price. Unlike most other resort and long stay management companies, KASALONG HOME is committed to guaranteeing customers full satisfaction, with 24-hour on-staff service, live answering service, and a website that handles all complaints instantly.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Pricing Strategy KASALONG HOME's pricing will be at the top of what the market will bear. We are competing with large firms who have similar complexes. Our prices will be competitive with these larger firms while maintaining the high level of quality and expert management. For example, a Condo unit price is based on average unit value of $1,486 , hotel rate at 162 /day/person. KASALONG HOME, however, must try to follow market pricing trends in order to maintain a competitive advantage. Promotion Strategy The most successful promotion will come in the form of word of mouth. Since we will have own real estate, we will be highly visible to the public. Since our complexes will be in the upper echelon of quality and livability, word will spread through the community about our unique appeal. Along with word of mouth, our most consistent form of promotion will come from ads in local publications, specifically, Bangkok Post, The Nations and The Thai Post, as well as smaller magazines and circulations. We will promote our project via exhibition hall and trade fair periodically. We will also be personally promoting our product within the community and by our own attractive website. We will have brochures available at all offices. These will give the customer a general outline of our units and will explain the benefits of our units. We will also have a monthly newsletter that we will send out to our clients. This newsletter will inform the clients as to the growth and outreach of KASALONG HOME. It will also contain some human-interest stories about our facilities of health cares and amenities. Furthermore, we also focus do the marketing direct to the target customers in the segmented countries in associated with the association related to the old age person, senior person and retired person. Here below are the names list of Associations and Consulting Company whom we are dealing with relating to our marketing plan. United State of America -

America Association Of Naturopathic Physicians America Holistic Medicine Association Homeopathic Educational Service Maharishi Ayurvead Health Center For Stress Management National Commission On The Certification Of Acupuncture

United Kingdom - Institute Of Complementary Medicine - British Complementary Medicine Association

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

-

Council For Complementary and Alternative Medicine Center For Complementary Health Studies British Acupuncture Council Holistic Medicine Homeopathy Naturopathic Medicine Acumedic Center (For Chinese and Other Medicine) Ainswonths Homeopathy Pharmacy

Korea - K.T.C.C. Co., Ltd

Distribution Strategy We will focus on providing high-quality living in convenient locations with a wide customer base. It is also important that we remain at the upper echelon in the quality range when compared to competitors. We can only do this by organizing and implementing a sound plan that will assume responsibility for the functionality and appearance of KASALONG HOME properties. We will have an updated Web site for anyone interested in our products and facilities. We will promote direct to the overseas customer, we will work-out with our sales agents and the retired association in Japan, Hong Kong, USA, Scandinavia, U.K. and China to promote our products and services. Marketing Program Our most important marketing program is customer word of mouth. The only way to truly know the quality of our units is through experience; hence we must maintain the highest level of customer satisfaction. Rewards will be given to clients or customers that refer new clientele to the company. We confidently believe that the high level of quality that KASALONG HOME will provide can attract a strong demand for our units. Sales Strategy Sales Goal • • • •

To have occupancy rate at 40% of the total rental unit for the first year of project operation (2nd year). To reach occupancy rate at 55%, 70% and 85% at 3rd, 4th, 5th and 6th year respectively. To maintain the occupancy rate of 90% every year from 7th year. To sell Time Sharing Member 1,000 subscribers per year for 2nd, 3rd, 8th , 9th ,14th and 15th year.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Sales Forecast Our sales policy concentrates into 2 categories which they are: a) Servicing & Products The total rental unit of KASALONG HOME is 450 units which will be utilized as follows: : 1. 5% - Keep as Non-Performance Unit (NPU- unavailable to sell or giving service in any circumstance e.g. repairing or being occupied incidentally). 2. 30% - reserved for time sharing member’s utilization. 3. 65% - available for sales to general customers. We expects rate of 75% occupancy for our rental units (hotel, condo, senior house and senior nursing home) which to begin at 40% at the 2nd year and will be 55%,70%,85% for the 3rd,4th, 5th,6th, and 90% from 7th year. b) Time Sharing Membership We expect to get a “Time Sharing Membership” of 1,000 subscribers each year for 2nd and 3rd year and another 2,000 in year 8th-9th,14th and 15th year. Each subscriber will pay member fee $10,000 one time charge and they have privilege to spend their vacation time with free of charge of rental and an additional provided facility for 15 days per year for the entire member contract of 5 years. Below are the chart shows the sales target and incomes of the project for 15 years operation. KASALONG HOME will have sales value of 20,500,868 at second year and reach the value of 56,709,976 at the 15th year.

Which shall breakdown per each category are as follows:

Hotel Senior House Nursing Home Health Care SPA Restaurant Member Fee Other Facilities Misc

Year 100% 10,188,486 3,299,189 2,108,108 2,918,919 731,286 1,332,973 10,800,000 3,163,784 509,424 35,052,170

1 Construction

2 40% 4,075,395 1,319,676 843,243 1,167,568 292,515 533,189 10,800,000 1,265,514 203,770 20,500,868

3 55% 5,883,851 1,905,282 1,217,432 1,685,676 422,318 769,792 10,800,000 1,827,085 294,193 24,805,628

4 70% 7,862,964 2,546,149 1,626,932 2,252,676 564,370 1,028,722

5 85% 10,025,280 3,246,340 2,074,339 2,872,161 719,572 1,311,620

2,441,650 393,148 18,716,612

3,113,104 501,264 23,863,681

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Hotel

6

7

8

9

10

85%

90%

90%

90%

90%

10,526,544

11,703,040

12,288,192

12,902,601

13,547,731

Senior House

3,408,657

3,789,625

3,979,106

4,178,061

4,386,965

Nursing Home

2,178,056

2,421,486

2,542,560

2,669,688

2,803,172

Health Care

3,015,770

3,352,826

3,520,467

3,696,491

3,881,315

755,551

839,995

881,994

926,094

972,399

1,377,201

1,531,124

1,607,680

1,688,064

1,772,467

12,960,000

12,960,000

3,268,759

3,634,091

3,815,796

4,006,585

526,327

585,152

614,410

645,130

SPA Restaurant Member Fee Other Facilities Misc

25,056,865

Hotel

27,857,338

43,672,715

42,210,205

11

12

13

14

15

90%

90%

90%

90%

90%

4,206,915 677,387 32,248,351

Total 167,418,353

14,225,118

14,936,374

15,683,192

16,467,352

17,290,720

Senior House

4,606,313

4,836,628

5,078,460

5,332,383

5,599,002

54,212,647

Nursing Home

2,943,331

3,090,497

3,245,022

3,407,273

3,577,637

34,640,669

Health Care

4,075,381

4,279,150

4,493,108

4,717,763

4,953,651

47,964,003

SPA

1,021,019

1,072,070

1,125,673

1,181,957

1,241,055

12,016,582

Restaurant

1,861,091

1,954,145

2,051,853

Member Fee Other Facilities Misc

2,154,445

2,262,167

21,903,561

15,552,000

15,552,000

78,624,000 51,987,650

4,417,260

4,638,123

4,870,030

5,113,531

5,369,208

711,256

746,819

784,160

823,368

864,536

8,370,918

33,860,768

35,553,807

37,331,497

54,750,072

56,709,976

477,138,384

Sales Value per Category

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

The pro-forma operating incomes of the project for the period of 15 years as shown in the chart hereunder. Pro-forma Revenue

US$ 60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0

-10,000,000 Sales Value

1 0

2

3

4

5

6

7

8

9

10

11

12

13

14

15

20,500 24,805 18,716 23,863 25,056 27,857 42,210 43,672 32,248 33,860 35,553 37,331 54,750 56,709

Cost of Sales & Expenses 600,32 6,378, 7,953, 8,198, 9,818, 10,293 12,538 13,278 12,556 12,963 13,595 14,258 16,510 17,475 16,688 -600,3 14,121 16,852 10,518 14,044 14,763 15,318 28,931 31,116 19,284 20,265 21,294 20,820 37,274 40,021 Operating Profits

Year

Pro-forma Operating Incomes.

Milestones The accompanying table lists our company's milestones, including dates, management responsibility. This table indicates our expectations from the company as well as outlining our plan for start up. This is an initial assessment, and KASALONG HOME will continually adjust in order to sustain our business in all the different departments.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Business Plan Milestones: Item 1 2 3 4 5 6 7

Activities Project Implementing /Seeking JV Partner Business Plan Preparing/Submitting for Funds Increasing Registered Capital/Company Establishment Construction Design/Licensing/Land Developing/Building Construction & Decoration Marketing Implementation Operating Plan/Job Description/Recruiting/Training Opening

Schedule Conducting Nov 2006 Nov 2006 Dec 2006 – Nov 2007 Apr –Nov 2007 Nov -Dec 2007 Jan 2008

Business Plan Milestone

Management Summary The initial management team depends on the founders themselves, with back-up assistance from the property management department of KASALONG HOME. As we continue to grow, we will establish satellite offices in all of our living developments. It will also be necessary to take on additional help in the marketing and R & D sectors as growth continues. Organizational Structure KASALONG HOME depends on an organized division of responsibilities in order to run an efficient, diversified enterprise. Main decisions and responsibilities will be divided between the four top partners. They will focus on maintaining high quality and a cohesive business entity. Top division managers will be given specific responsibilities such as marketing, finance, strategic management, or research and development.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Organization Chard

President

Board of Director

Advisor

Managing Director General Manager

Health Division

SPA Division

Thai Clinic

Massage

Chinese Clinic

Club House

Dental Clinic

Senior Nursing Home Division

Hotel Division

Admin. Division

Marketing Division

Front

Front

Finance

Thai

House Keeping

House Keeping

Security

Overseas

Driver Gardener

F/B

F/B

Gardener

Engineer

Nurse

Gardener

Senior House Division House Keeping

H/R

Personal

Organization Chart KASALONG HOME is completely departmentalized. The main departments are Administration, Marketing, Hotel, Senior House, Senior Nursing Home, SPA and Health. KASALONG HOME employees at the beginning of the project operation will be approximately 476 employees. Dr.Witoon Nirooktisarn, will be a President, Mr. Cheeravit Pongsatayachon , the founder of the company, assumes the responsibilities of the Managing Director, while his co-partner, Mrs. Alongkorn Chaengcharoen, will be responsible for the duties of Admin & Finance Director. Mr. Ekawat Poukam. the other co-partner will act in the capacity of a General Manager to control and supervise the hotel management and its operations. The company will make all decisions in accordance with the company mission. Employees are delegated tasks based upon their specialty.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Management Team

Top Management Team Dr. Witoon Nirooktisarn – President: 58 years, Degree in Medical Science, 30 years experience in Orthopedic and Ayurvedic Doctor. Mr. Cheeravit Pongsatayachon - Managing Director: 53 years, Degree in Politic Science, with 17 years experienced in Medicine Detailer, 6 years in Health Tour and Special Lecturer in Health Services at Educational Institute , Kun Ming , China. Presently, acting as Health Resort Manager of Naerun Chara Hot Spring Resort, Chiangrai Province. Mrs. Alongkorn Chaengcharoen - Admin & Finance Director: 48 years, Degree in Public Health, Degree in Nursery & Midwifery , with 20 years experience in Public Health and Nursing. Mr. Ekawat Poukam, General Manager: 34 years, Degree in Computer Science and Master Degree in Information Technology, 10 years experience in Computer System & Software and Hotel Manager. Every six months, the four top partners will assess the results of these tasks, and the personality of the employee involved, to determine promotion and/or salary issues. Management Team Chairman: Managing Director:

Dr.Witoon Nirooktisan (Physician) Mr.Cheeravit Pongsatayachon

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

General Manager: Alternative Medical Doctor: Thai Medical Doctor: Chinese Medical Doctor: Senior Health Care Manager: Physical & Recreation Manager: Nutrition Manager: SPA & Beauty Manager: Room Manager: Marketing Manager: Accounts & Finance Manager: Food & Beverage Manager:

(Health Administrator) Mr.Ekawat Pookum (Hotel Administrator) Dr.Sirintorn Cholitakul (Physician) Miss Mukda Chantaneeya (Physician) Sew I-Chiang (Physician) Mrs. Alongkorn Chaengcharoen (Nurse) Mis.Kanokporn Homnan (Physicalist) Mrs.Rewadee Rouyam (Nutritionist) Mrs.Pasinee Sathirat (SPA Specialist) Mr.Peerasak Bancheun (Hotel Administrator) Miss Porttip Nantachai (Marketing) Mrs.Patcharee Bussabok (Accountant) Mr.Tanasilp Kongtiang (F & B)

Advisor Team Alternative Medicine Doctor: Chinese Medical Doctor: Senior Nutrition: Health & Beauty: Overseas Market Mental Health: Senior Nursery Care:

Dr.Petchara Lorvithaya Health Promotion Clinic – McCormick Hospital Mr.Suthisak Pavorathisan Chinese Medical University, Chan Tu Mr.Vatcharapol Thamkoon Food Scientist , U.K Dr.Vithan Thanavuth Chulalongkorn University Mr.Kevin Lee Mr.Visit Wungvinyu Mrs.Ounchai Songkroh Health Educator 9

Management Team Gaps The present team requires business development and administrative support. Most of the partners have been working in business environments where this kind of support was provided to them as part of a larger organization. KASALONG HOME will turn to Dynamic Public Relations to help create business development programs, such as speaking opportunities and magazine article insertions, as well as forums and seminars that are important to our ongoing development. Regarding administration, we need a strong finance manager to guard cash flow. Our partners are not accustomed to the worries of cash flow, but they have the sense to listen to reason and deal with constraints if the finance manager provides the proper information.

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INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Financial Analysis We want to finance growth mainly through cash flow. We recognize that this means we will have to grow more slowly than we might like. The most important factor in our case is collection days. We cannot push our clients hard on collection days. Therefore, we need to develop a permanent system of receivables financing, using one of the established financial companies in that business. General Assumptions

General Assumptions Short Term Interest Rate Long Term Interest Rate Payment days Collection days Inventory Turnover Tax Rate Percent Household Tax Insurance Premium Expenses in cash Sales on credit Allowance & Food Income & Expenses Loan Term (Year)

Annual Earn /12

Annually Increase

8.00% 5.00% 30 45 12.00 30.00% *1.5 0.2% 10.00% 70.00% 20.00% 5% 15

49

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Break-Even Analysis

With fixed costs of $879,616 per month (sales cost (without member fee) + operating expenses + interest + household tax & insurance ). We will need customer 108.5 persons per day (3,255 persons per month) to spend at least $270.27 /day /person (for the rental cost and other facilities), to cover our monthly expenditure cost.

Breakeven Analysis ฿800,000 ฿600,000 ฿400,000 ฿200,000 ฿0

Profits

฿-200,000

500

1,000 2,000 3,000 4,000 5,000 1,500 2,500 3,500 4,500 5,500

฿-400,000 ฿-600,000 ฿-800,000 ฿-1,000,000

Sales Expenses Break Even

Expenses Break- Even Analysis: Monthly Person Break-even Daily Person Break-even Monthly Sales Break-even

3,255 108.5 $879,616

Assumptions: Average Person Sale Fixed Cost

$270.27 $879,616

50

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Pay Back Break-Even Analysis

Paid Back Break Even

US$ 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 -20,000,000 Capital Sales Value Net Incomes

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 0

20,500, 24,805, 18,716, 23,863, 25,056, 27,857, 42,210, 43,672, 32,248, 33,860, 35,553, 37,331, 54,750, 56,709,

-2,131, 7,102,2 8,170,3 4,325,5 6,520,7 7,030,8 7,440,9 15,848, 17,292, 10,150, 10,899, 11,635, 11,449, 21,632, 23,420,

0 Outstanding Loan 31,863, 30,863, 29,863, 28,863, 26,863, 24,863, 22,863, 19,863, 16,863, 13,863, 10,863, 7,863,6 4,863,6 1,863,6 907,70 8,508,2 17,176, 22,000, 28,019, 34,548, 41,488, 55,835, 71,625, 80,273, 89,609, 99,680, 109,56 129,63 152,62 Cash Balance Equity

-1,781, 3,190,0 11,360, 15,685, 22,206, 29,237, 36,678, 52,527, 69,819, 79,969, 90,869, 102,50 113,95 135,58 159,00

Year

Pay Back Break- Even With the debt from loan $31,863,662, KASALONG HOME will pay the interest and principal annually from 2nd year, and will have principal remain of $26,863,662 at the end of 5th year. As the chart above, shown that at the end of 5th year KASALONG HOME have cash on hand $ 28,019,704 with the outstanding debt of $26,863,662. The outstanding debt can pay-out at the end of 5 year ( see the graph line will cross at that period point).

51

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Salary & Wage Rate Salary & Wage Rate

General Administration President Managing Director Executive Secretary MD Assistant Personnel Manager Personnel Officer Account Manager Accounting Finance Manager Finance Documentation Data Base Information Technology Web Master PR Manager PR Purchase Manager Purchaser Store Manager Store Engineering Manager General Engineer Electric Engineer Water Pipe Engineer Gardener Supervisor Gardener Security Manager Security Supervisor Security Man Driver Maid Total Sales & Marketing Marketing Manager Sales Supervisor Sales Marketing Documentation Total Guest Hotel

Nrs.

Salary(Baht)

Salary(USD)

1 1 1 2 1 3 1 5 1 3 2 2 3 2 1 3 1 3 1 3 1 2 1 1 1 30 1 2 24 3 2 108

80,000 70,000 15,000 30,000 25,000 8,000 15,000 8,000 15,000 8,000 8,000 8,000 8,000 10,000 15,000 8,000 15,000 8,000 15,000 8,000 15,000 8,000 8,000 8,000 8,000 5,000 15,000 10,000 7,000 5,500 5,000

2,162 1,892 405 811 676 216 405 216 405 216 216 216 216 270 405 216 405 216 405 216 405 216 216 216 216 135 405 270 189 149 135

1 2 5 5 13

30,000 25,000 8,000 8,000

811 676 216 216

Amount (USD)

Year (USD)

2,162 1,892 405 1,622 676 649 405 1,081 405 649 432 432 649 541 405 649 405 649 405 649 405 432 216 216 216 4,054 405 541 4,541 446 270 26,905

322,865

811 1,351 1,081 1,081 4,324

51,892

52

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

General Manager Resident Manager Sales Manager Asst. Sales Manager Sales Front Manager Front Bell Boy & Girl House Keeping Manager Supervisor Maid Room Boy Laundry Supervisor Laundry Finance F&B Manager Restaurant Manager Supervisor Bartender Chef Cook Cook Helper Disk Cleaner Waiter & Waitress Bus Boy & Girl Clerk Total Senior House & Condo Senior House Manager Nurse Front Desk Maid Driver Data Base Total Senior Nursing Home Manager Receptionist Cashier Physician Nurse Attendant Data Base Maid Driver

1 1 1 2 2 1 6 5 1 2 10 5 1 6 2 1 1 2 5 1 4 4 5 10 5 1 85

30,000 18,000 25,000 12,000 8,000 15,000 8,000 5,000 15,000 8,000 5,500 5,500 8,000 5,500 8,000 25,000 15,000 10,000 6,000 15,000 13,000 7,000 5,000 5,000 5,000 7,000

1 3 2 20 5 2 33

25,000 15,000 7,000 5,000 7,000 8,000

1 3 1 3 10 30 2 10 5

25,000 8,000 8,000 50,000 20,000 5,500 8,000 5,000 6,500

811 486 676 324 216 405 216 135 405 216 149 149 216 149 216 676 405 270 162 405 351 189 135 135 135 189

676 405 189 135 189 216

676 216 216 1,351 541 149 216 135 176

811 486 676 649 432 405 1,297 676 405 432 1,486 743 216 892 432 676 405 541 811 405 1,405 757 676 1,351 676 189 17,932

215,189

676 1,216 378 2,703 946 432 6,351

76,216

676 649 216 4,054 5,405 4,459 432 1,351 878

53

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Nutritionist Cook Dish Washer Bell Boy & Girl Service Health Care Health Division Manager Cashier Thai Clinic Clinic Manager Ayurvedha Doctor Nurse Receptionist Therapist Attendant Chinese Clinic Clinic Manager Chinese Doctor Nurse Therapist Attendant Physical Clinic Clinic Manager Therapist Attendant Dental Clinic Clinic Manager Receptionist Cashier Doctor Helper Attendant Total SPA SPA Manager Receptionist Cashier Therapist Attendant Beauty Salon

1 3 5 6 10 90

15,000 1,000 5,000 6,500 5,500

405 27 135 176 149

1 1

25,000 7,000

676 189

676 189

1 2 2 1 5 3 16

15,000 20,000 15,000 8,000 6,500 5,000

405 541 405 216 176 135

405 1,081 811 216 878 405 4,662

55,946

1 3 3 3 2 12

15,000 20,000 15,000 6,500 5,000

405 1,622 1,216 527 270 4,041

48,486

1 5 5 11

15,000 6,500 6,000

405 878 811 2,095

25,135

1 2 1 1 3 3 11 50

25,000 8,000 8,000 100,000 8,000 5,000

676 432 216 2,703 649 405 5,081 15,878

60,973 190,541

1 2 1 6 1 2

25,000 8,000 8,000 6,500 5,000 8,000

405 541 405 176 135

405 176 162

676 216 216 2,703 216 135

676 216 216 176 135 216

405 81 676 1,054 1,486 21,824

261,892

676 432 216 1,054 135 432

54

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Total

13 15,000 13,000 7,000 7,000 13,000 7,000 5,500 5,000 5,500 9,000 5,000

Total

1 1 1 1 1 3 3 3 12 2 2 30

1 1 2 3 7

15,000 8,000 8,000 6,000

1 2 5 1 2 11

15,000 7,000 6,000 7,000 7,000

1 2 1 4 10 5 1 1 3 3 3 2 36 54 476

15,000 8,000 7,000 7,000 5,000 5,000 13,000 13,000 7,000 5,500 5,000 9,000

Restaurant F&B Manager Supervisor Receptionist Cashier Chef Cook Helper Disk Washer Waiter & Waitress Bartender Laundry Other Facilities Health Shop Shop Manager Receptionist Cashier PC Conference Room Manager Audio Vision Control Attendant Cashier Beverage Club House Club Manager Receptionist Cashier Coffee Corner Waiter & Waitress Attention Supervisor Chef Cook Helper Disk Washer Bartender Total Grand Total

405 351 189 189 351 189 149 135 149 243 135

405 216 216 162

405 189 162 189 189

405 216 189 189 135 135 351 351 189 149 135 243

2,946

35,351

405 351 189 189 351 568 446 405 1,784 486 270 5,446

65,351

405 216 432 486 1,541

18,486

405 378 811 189 378 2,162 405 432 189 757 1,351 676 351 351 568 446 405 486 6,419 10,122 111,730

25,946

77,027 121,459 1,340,757

Salary & Wage Rate

55

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Sales Cost & Operating Expenses

1 Direct Sales Cost Guest Hotel Salary & Wage Allowance & Food Office Stationery F& B Cost for Guest F&B Cost for Memers Package Cost for Members Electric & Water Telephone Sales Commission Fees Others Total 3 Restaurants Direct Sales Cost Salary & Wage Allowance & Food Office Stationery Equipments Electricity & Water Telephone Fuel Music & Entertainment Others Total Senior Nursing Home Salary & Wage Allowance & Food Electricity & Water Telephone Sales Commission Others Total Senior House & Condo Salary & Wage Allowance & Food Electric & Water Equipments Telephone Sales Commission Others Total

20.00% 1.00% 2.25% 3 150 3.00%

salary rental rental each/day each rental

20.00% 2.50% 3.00%

rental rental rental

35.00%

sales

20.00% 1.00% 1.80%

salary sales sales sales

1.00% 1.50% 5.00%

sales sales sales

20.00% 3.00%

salary rental

10.00% 5.00%

rental rental

20.00% 1.00% 1.80%

salary rental rental

10.00% 2.00%

rental rental

2

3

4

5

215,189 225,949 237,246 249,108 43,038 45,190 47,449 49,822 40,754 58,839 78,630 100,253 91,696 132,387 176,917 225,569 48,600 102,060 107,163 112,521 162,000 340,200 357,210 375,071 122,262 176,516 235,889 300,758 9,000 9,450 9,923 10,419 815,079 1,176,770 1,572,593 2,005,056 101,885 147,096 196,574 250,632 122,262 176,516 235,889 300,758 1,771,765 2,590,971 3,255,482 3,979,967

6

7

261,564 274,642 52,313 54,928 105,265 117,030 236,847 263,318 118,147 124,055 393,824 413,515 315,796 351,091 10,940 11,487 2,105,309 2,340,608 263,164 292,576 315,796 351,091 4,178,965 4,594,342

8

288,374 57,675 122,882 276,484 130,257 434,191 368,646 12,061 2,457,638 307,205 368,646 4,824,059

186,616 65,351 13,070 5,332 9,597 38,919 18,000 5,332 7,998 26,659 376,875

269,427 68,619 13,724 7,698 13,856 40,865 18,900 7,698 11,547 38,490 490,823

360,053 72,050 14,410 10,287 18,517 42,908 19,845 10,287 15,431 51,436 615,224

459,067 75,652 15,130 13,116 23,609 45,054 20,837 13,116 19,674 65,581 750,838

482,021 79,435 15,887 13,772 24,790 47,306 21,879 13,772 20,658 68,860 788,380

535,893 83,407 16,681 15,311 27,560 49,671 22,973 15,311 22,967 76,556 866,332

562,688 87,577 17,515 16,077 28,938 52,155 24,122 16,077 24,115 80,384 909,648

261,892 52,378 25,297 7,200 84,324 42,162 473,254

274,986 54,997 36,523 7,560 121,743 60,872 556,682

288,736 57,747 48,808 7,938 162,693 81,347 647,269

303,173 60,635 62,230 8,335 207,434 103,717 745,523

318,331 63,666 65,342 8,752 217,806 108,903 782,799

334,248 66,850 72,645 9,189 242,149 121,074 846,154

350,960 70,192 76,277 9,649 254,256 127,128 888,462

76,216 15,243 13,197 23,754 7,200 131,968 26,394 293,971

80,027 16,005 19,053 34,295 7,560 190,528 38,106 385,574

84,028 16,806 25,461 45,831 7,938 254,615 50,923 485,602

88,230 17,646 32,463 58,434 8,335 324,634 64,927 594,669

92,641 18,528 34,087 61,356 8,752 340,866 68,173 624,402

97,273 19,455 37,896 68,213 9,189 378,962 75,792 686,782

102,137 20,427 39,791 71,624 9,649 397,911 79,582 721,121

56

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

SPA Salary & Wage Allowance & Food Electrict & Water Telephone Equipments

20.00% 3.00%

salary sales

10.00%

sales

20% 3.00%

salary sales

10.00%

sales

20.00% 35.00% 3.00%

salary sales sales

Total Health Care Services Salary & Wage Allowance & Food Electricity & Water Telephone Equipments Total Others Salary & Wage Allowance & Food Direct Sales Cost Electricity & Water Telephone Equipments

10.00% Total

Membership Sales Commission

10.00%

sales

Total Total Direct Cost Indirect Cost Administration Salary & Wage Allowance & Food Credit Card Fees Electric & Water Telephone Office Stationery Debt Lost Others Total Sales & Marketing Salary & Wage Allowance & Food Ads & Promotion Total Total Indirect Cost Grand Total

35,351 7,070 8,775 6,000 29,251 86,449

37,119 7,424 12,670 6,300 42,232 105,744

38,975 7,795 16,931 6,615 56,437 126,753

40,924 8,185 21,587 6,946 71,957 149,598

42,970 8,594 22,667 7,293 75,555 157,078

45,118 9,024 25,200 7,658 83,999 170,999

47,374 9,475 26,460 8,041 88,199 179,549

190,541 38,108 35,027 6,000 116,757 386,432

200,068 40,014 50,570 6,300 168,568 465,519

210,071 42,014 67,580 6,615 225,268 551,548

220,574 44,115 86,165 6,946 287,216 645,016

231,603 46,321 90,473 7,293 301,577 677,267

243,183 48,637 100,585 7,658 335,283 735,345

255,343 51,069 105,614 8,041 352,047 772,112

147,635 155,016 29,527 31,003 1,144,066 1,271,932 98,063 109,023 7,293 7,658 326,876 363,409 1,753,459 1,938,041

162,767 32,553 1,335,528 114,474 8,041 381,580 2,034,943

121,459 127,532 133,909 140,605 24,292 25,506 26,782 28,121 442,930 639,480 854,578 1,089,586 37,965 54,813 73,250 93,393 6,000 6,300 6,615 6,946 126,551 182,709 244,165 311,310 759,198 1,036,340 1,339,298 1,669,961 1,080,000 1,080,000 1,080,000 1,080,000

1,080,000 1,080,000

4,468,747 5,675,313 5,681,878 6,865,611

20.00% 1.50%

salary salary

0.50% 1.00%

total sales total sales

20.00% 325K/year

salary total sales

322,865 64,573 20,111 22,703 9,730 16,216 102,504 205,009 763,711

339,008 67,802 21,117 23,838 10,216 17,027 124,028 248,056 851,092

355,959 71,192 22,173 25,030 10,727 17,878 93,583 187,166 783,707

373,756 74,751 23,281 26,281 11,263 18,772 119,318 238,637 886,061

51,892 54,486 57,211 60,071 10,378 10,897 11,442 12,014 325,000 325,000 325,000 325,000 387,270 390,384 393,653 397,086 1,150,981 1,241,476 1,177,360 1,283,147 5,619,728 6,916,789 6,859,238 8,148,758

7,208,891 7,899,953

9,374,951

392,444 412,066 78,489 82,413 24,445 25,668 27,595 28,975 11,827 12,418 19,711 20,696 125,284 139,287 250,569 278,573 930,364 1,000,097

432,670 86,534 26,951 30,424 13,039 21,731 211,051 422,102 1,244,502

63,075 66,229 69,540 12,615 13,246 13,908 325,000 325,000 325,000 400,690 404,474 408,448 1,331,054 1,404,571 1,652,950 8,539,946 9,304,525 11,027,901

57

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

9 Direct Sales Cost Guest Hotel Salary & Wage Allowance & Food Office Stationery F& B Cost for Guest F&B Cost for Memers Package Cost for Members Electric & Water Telephone Sales Commission Fees Others Total 3 Restaurants Direct Sales Cost Salary & Wage Allowance & Food Office Stationery Equipments Electricity & Water Telephone Fuel Music & Entertainment Others Total Senior Nursing Home Salary & Wage Allowance & Food Electricity & Water Telephone Sales Commission Others Total Senior House & Condo Salary & Wage Allowance & Food Electric & Water Equipments Telephone Sales Commission Others Total SPA Salary & Wage Allowance & Food Electrict & Water Telephone Equipments Total

20.00% 1.00% 2.25% 3 150 3.00%

salary rental rental each/day each rental

20.00% 2.50% 3.00%

rental rental rental

35.00%

sales

20.00% 1.00% 1.80%

salary sales sales sales

1.00% 1.50% 5.00%

sales sales sales

20.00% 3.00%

salary rental

10.00% 5.00%

rental rental

20.00% 1.00% 1.80%

salary rental rental

10.00% 2.00%

rental rental

20.00% 3.00%

salary sales

10.00%

sales

10

11

12

13

14

15

302,793 60,559 129,026 290,309 136,770 455,901 387,078 12,664 2,580,520 322,565 387,078 5,065,262

317,932 63,586 135,477 304,824 143,609 478,696 406,432 13,297 2,709,546 338,693 406,432 5,318,525

333,829 66,766 142,251 320,065 150,789 502,630 426,754 13,962 2,845,024 355,628 426,754 5,584,451

350,521 70,104 149,364 336,068 158,329 527,762 448,091 14,660 2,987,275 373,409 448,091 5,863,674

368,047 73,609 156,832 352,872 166,245 554,150 470,496 15,393 3,136,638 392,080 470,496 6,156,857

386,449 77,290 164,674 370,515 174,557 581,857 494,021 16,163 3,293,470 411,684 494,021 6,464,700

405,771 81,154 172,907 389,041 183,285 610,950 518,722 16,971 3,458,144 432,268 518,722 6,787,935

590,822 91,956 18,391 16,881 30,385 54,763 25,328 16,881 25,321 84,403 955,131

620,364 96,554 19,311 17,725 31,904 57,501 26,594 17,725 26,587 88,623 1,002,887

651,382 101,381 20,276 18,611 33,500 60,376 27,924 18,611 27,916 93,055 1,053,032

683,951 106,450 21,290 19,541 35,175 63,395 29,320 19,541 29,312 97,707 1,105,683

718,148 111,773 22,355 20,519 36,933 66,565 30,786 20,519 30,778 102,593 1,160,967

754,056 117,362 23,472 21,544 38,780 69,893 32,325 21,544 32,317 107,722 1,219,016

791,759 123,230 24,646 22,622 40,719 73,387 33,942 22,622 33,933 113,108 1,279,967

368,508 73,702 80,091 10,131 266,969 133,484 932,885

386,934 77,387 84,095 10,638 280,317 140,159 979,529

406,280 81,256 88,300 11,170 294,333 147,167 1,028,505

426,594 85,319 92,715 11,728 309,050 154,525 1,079,931

447,924 89,585 97,351 12,314 324,502 162,251 1,133,927

470,320 94,064 102,218 12,930 340,727 170,364 1,190,624

493,836 98,767 107,329 13,577 357,764 178,882 1,250,155

107,244 21,449 41,781 75,205 10,131 417,806 83,561 757,177

112,606 22,521 43,870 78,965 10,638 438,696 87,739 795,036

118,236 23,647 46,063 82,914 11,170 460,631 92,126 834,787

124,148 24,830 48,366 87,059 11,728 483,663 96,733 876,527

130,356 26,071 50,785 91,412 12,314 507,846 101,569 920,353

136,873 27,375 53,324 95,983 12,930 533,238 106,648 966,371

143,717 28,743 55,990 100,782 13,577 559,900 111,980 1,014,689

49,743 9,949 27,783 8,443 92,609 188,526

52,230 10,446 29,172 8,865 97,240 197,953

54,842 10,968 30,631 9,308 102,102 207,850

57,584 11,517 32,162 9,773 107,207 218,243

60,463 12,093 33,770 10,262 112,567 229,155

63,486 12,697 35,459 10,775 118,196 240,613

66,660 13,332 37,232 11,314 124,105 252,643

58

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Health Care Services Salary & Wage Allowance & Food Electricity & Water Telephone Equipments

20% 3.00%

salary sales

10.00%

sales

20.00% 35.00% 3.00%

salary sales sales

Total Others Salary & Wage Allowance & Food Direct Sales Cost Electricity & Water Telephone Equipments

10.00% Total

Membership Sales Commission

10.00%

sales

Salary & Wage Allowance & Food Ads & Promotion Total Total Indirect Cost Grand Total

281,515 56,303 116,439 8,865 388,132 851,254

295,591 59,118 122,261 9,308 407,538 893,817

310,370 62,074 128,375 9,773 427,915 938,507

325,889 65,178 134,793 10,262 449,311 985,433

342,183 68,437 141,533 10,775 471,776 1,034,704

359,293 71,859 148,610 11,314 495,365 1,086,440

170,906 34,181 1,402,305 120,198 8,443 400,659 2,136,690

179,451 35,890 1,472,420 126,207 8,865 420,691 2,243,525

188,423 37,685 1,546,041 132,518 9,308 441,726 2,355,701

197,845 39,569 1,623,343 139,144 9,773 463,812 2,473,486

207,737 41,547 1,704,510 146,101 10,262 487,003 2,597,160

218,124 43,625 1,789,736 153,406 10,775 511,353 2,727,019

229,030 45,806 1,879,223 161,076 11,314 536,921 2,863,369

1,080,000 1,080,000

1,080,000 1,080,000

1,080,000 1,080,000

Total Total Direct Cost Indirect Cost Administration Salary & Wage Allowance & Food Credit Card Fees Electric & Water Telephone Office Stationery Debt Lost Others Total Sales & Marketing

268,110 53,622 110,895 8,443 369,649 810,718

20.00% 1.50%

salary salary

0.50% 1.00%

total sales total sales

20.00% 325K/year

salary total sales

9,789,699

9,145,184

9,602,443 10,082,565 10,586,693 12,196,028 12,751,829

454,303 90,861 28,299 31,945 13,691 22,818 218,364 436,727 1,297,007

477,018 95,404 29,714 33,542 14,375 23,959 161,242 322,484 1,157,737

500,869 100,174 31,199 35,219 15,094 25,157 169,304 338,608 1,215,624

73,017 14,603 325,000 412,621 1,709,627 11,499,326

525,913 105,183 32,759 36,980 15,849 26,415 177,769 355,538 1,276,405

552,208 110,442 34,397 38,829 16,641 27,735 186,657 373,315 1,340,226

579,819 115,964 36,117 40,771 17,473 29,122 273,750 547,501 1,640,517

608,810 121,762 37,923 42,809 18,347 30,578 283,550 567,100 1,710,879

76,668 80,501 84,526 88,753 93,190 97,850 15,334 16,100 16,905 17,751 18,638 19,570 325,000 325,000 325,000 325,000 325,000 325,000 417,002 421,602 426,432 431,503 436,828 442,420 1,574,739 1,637,226 1,702,837 1,771,729 2,077,345 2,153,299 10,719,922 11,239,668 11,785,402 12,358,422 14,273,373 14,905,128

Sales Cost & Expenses

59

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Rent & Service Charge Rate Pro-forma Revenue Price (USD) 1

2

3

4

5

5

6

Hotel 2 persons 1 person (Provides free 2 meals, laundry with local tour package & health course) Senior House & Condo Senior Villa A Senior Villa B Senior Villa C Senior Condominium

Senior Nursing Home Senior Room (1 persons per unit) (3 meals, laundry, nursery care) Restaurant Restaurant (Hotel) Restaurant (Building) Restaurant (Club House) Health Service Thai Clinic (Ayurvedha) Chinese Medicine Clinic Physical Clinic Dental Clinic SPA 1. Hotel Customers 2. Walk-In Other Services Health Care Training Courses Conference Room (500 persons x 8 day/month)

Unit

Day

Month

Year

162

105

34,054

12,259,459

211

45 150

9,486 43,541

***Total

65%

28,301

1,021,62 2 284,595 1,306,21 6 849,041

10,188,486

3,243 2,027 1,486 1,486 ***Total

50 70 30 50 200 65%

162,162 141,892 44,595 74,324 422,973 274,932

1,945,946 1,702,703 535,135 891,892 5,075,676 3,299,189

1,757

100

175,676

2,108,108

Total

100

175,676

2,108,108

14 14 10 Total

100 100 100 300

1,351 1,351 1,000 3,703

40,541 40,541 30,000 111,081

486,486 486,486 360,000 1,332,973

41 81 41 135 Total

20 50 30 15 115

811 4,054 1,216 2,027 8,108

24,324 121,622 36,486 60,811 243,243

291,892 1,459,459 437,838 729,730 2,918,919

68 68 Total

20 10 30

1,351 680 2,031

40,541 20,400 60,941

486,486 244,800 731,286

27,027

324,324

108,108

1,297,297

135 27

200/mo nth 4000

3,415,135 15,674,595

60

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Health Shop Club House Coffee Corner Spot, Swimming Pool, Games etc.

41 14 5 10

50 50 200 50

2,027 676 1,081 500

Total 7

60,811 20,270 32,432 15,000

729,730 243,243 389,189 180,000

263,649

3,163,784

Time Sharing Member 10,000 3 30,000 900,000 10,800,000 Total 3 30,000 900,000 10,800,000 *** 65% of Units for sale , 30% for time sharing members and 5% for non performance units.

Rental & Services Charge Rate

61

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Pro-forma Cash Flow The projected profit and loss for KASALONG HOME is shown on the following table. This aggressive projection will help our efforts to keep total cost of sales low while increasing gross margin. We will also have very low marketing costs, due to the public exposure to the units, and good word of mouth around the industrial community area.

Pro-forma Cash Flow

US$ 160,000,000

140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Net Cash Flow 907,70 7,600,5 8,668,6 4,823,8 6,019,0 6,529,1 6,939,2 14,346, 15,790, 8,648,4 9,335,2 10,070, 9,885,4 20,068, 22,992, Cash Balance 907,70 8,508,2 17,176, 22,000, 28,019, 34,548, 41,488, 55,835, 71,625, 80,273, 89,609, 99,680, 109,56 129,63 152,62

Year

Pro-forma Cash Flow (15years)

62

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

1 Starting Balance Cash Flow In Capital Loan Net Profit Plus Depreciation Total Cash Flow In Cash Flow Out Inventory Long Terms Asset Loan Repayment Other Total Cash Flow Out Net Cash Flow Cash Balance

2 907,700

3 8,508,212

4 17,176,860

5 22,000,673

6 28,019,704

7 34,548,814

8 41,488,054

540,540 31,863,662 -2,131,104

7,102,249

8,170,384

4,325,550

6,520,767

7,030,847

7,440,976

15,848,686

1,498,264 31,771,362

1,498,264 8,600,512

1,498,264 9,668,647

1,498,264 5,823,813

1,498,264 8,019,031

1,498,264 8,529,111

1,498,264 8,939,239

1,498,264 17,346,950

1,000,000

1,000,000

1,000,000

2,000,000

2,000,000

2,000,000

3,000,000

1,000,000 7,600,512 8,508,212

1,000,000 8,668,647 17,176,860

1,000,000 4,823,813 22,000,673

2,000,000 6,019,031 28,019,704

2,000,000 6,529,111 34,548,814

2,000,000 6,939,239 41,488,054

3,000,000 14,346,950 55,835,004

300,000 28,242,041 2,321,622 30,863,662 907,700 907,700

Starting Balance Cash Flow In Capital Loan Net Profit Plus Depreciation Total Cash Flow In Cash Flow Out Inventory Long Terms Asset Loan Repayment Other Total Cash Flow Out Net Cash Flow Cash Balance

9 55,835,004

10 71,625,473

11 80,273,968

12 89,609,240

13 99,680,092

17,292,206

10,150,231

10,899,596

11,635,177

11,449,727

21,632,659

23,420,195

1,498,264 18,790,469

1,498,264 11,648,495

1,435,676 12,335,272

1,435,676 13,070,853

1,435,676 12,885,403

1,435,676 23,068,334

1,435,676 24,855,871

3,000,000

3,000,000

3,000,000

3,000,000

3,000,000

3,000,000

1,863,662

3,000,000 15,790,469 71,625,473

3,000,000 8,648,495 80,273,968

3,000,000 9,335,272 89,609,240

3,000,000 3,000,000 10,070,853 9,885,403 99,680,092 109,565,495

14 15 109,565,495 129,633,830

3,000,000 1,863,662 20,068,334 22,992,208 129,633,830 152,626,038

Pro-forma Cash Flow

63

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Pro-forma Profits & Losses We expect income to hit $6 million for the 5th year of the business plan and $14 million in 10th year and 20 million in 15th year.

Year Revenue Guest Hotel Senior House & Condo Senior Nursing Home Health Care Services

1

2

3

4

SPA

0

292,515

422,318

564,370

719,572

755,551

839,995

881,994

3 Restaurants Membership Fee Other Facilities

0 0

533,189 10,800,000 1,265,514

769,792 10,800,000 1,827,085

1,028,722 0 2,441,650

1,311,620 0 3,113,104

1,377,201 0 3,268,759

1,531,124 0 3,634,091

1,607,680 12,960,000 3,815,796

203,770

294,193

393,148

501,264

526,327

585,152

614,410

0

20,500,868

24,805,628

18,716,612

23,863,681

25,056,865

27,857,338

42,210,205

1,771,765 293,971 473,254 386,432 86,449 376,875 1,080,000 759,198

2,590,971 385,574 556,682 465,519 105,744 490,823 1,080,000 1,036,340

3,255,482 485,602 647,269 551,548 126,753 615,224

3,979,967 594,669 745,523 645,016 149,598 750,838

4,178,965 624,402 782,799 677,267 157,078 788,380

1,339,298

1,669,961

1,753,459

4,594,342 686,782 846,154 735,345 170,999 866,332 1,296,000 1,938,041

4,824,059 721,121 888,462 772,112 179,549 909,648 1,296,000 2,034,943

0 0

5,227,944 15,272,924

6,711,653 18,093,975

7,021,176 11,695,437

8,535,572 15,328,109

8,962,351 16,094,514

11,133,995 16,723,343

11,625,894 30,584,311

254,570 345,757 600,327 -600,327

763,711 387,270 1,150,981 14,121,943

851,092 390,384 1,241,476 16,852,500

783,707 393,653 1,177,360 10,518,076

886,061 397,086 1,283,147 14,044,962

930,364 400,690 1,331,054 14,763,460

1,000,097 404,474 1,404,571 15,318,772

1,244,502 408,448 1,652,950 28,931,361

32,514 1,498,264

1,797,756 1,498,264 1,593,183 4,889,203 9,232,740 2,130,491 7,102,249

2,139,076 1,498,264 1,543,183 5,180,523 11,671,977 3,501,593 8,170,384

1,347,273 1,498,264 1,493,183 4,338,720 6,179,357 1,853,807 4,325,550

1,788,134 1,498,264 1,443,183 4,729,580 9,315,382 2,794,614 6,520,767

1,877,946 1,498,264 1,343,183 4,719,393 10,044,067 3,013,220 7,030,847

1,947,360 1,498,264 1,243,183 4,688,807 10,629,965 3,188,990 7,440,976

3,648,934 1,498,264 1,143,183 6,290,380 22,640,980 6,792,294 15,848,686

Indirect Cost Administation Sales & Marketing Total Operating Expenses Operating Profit (Loss) Before Fi Fixed Cost Household Tax & Insurance Depreciation Long Term Loan Interest Total Fixed Expenses Net Profit (Loss) Before Taxes Corporated Taxes Net Profit (Loss)

0

1,530,777 -2,131,104 -2,131,104

11,703,040 3,789,625 2,421,486 3,352,826

8

5,883,851 1,905,282 1,217,432 1,685,676

Direct Cost Guest Hotel Senior House & Condo Senior Nursing Home Health Care Services SPA 3 Restaurants (25%) Membership Other Facilities Misc Total Directed Cost Gross Profits Before Operating

10,526,544 3,408,657 2,178,056 3,015,770

7

4,075,395 1,319,676 843,243 1,167,568

Total Revenue

10,025,280 3,246,340 2,074,339 2,872,161

6

0 0 0 0

Misc

7,862,964 2,546,149 1,626,932 2,252,676

5

12,288,192 3,979,106 2,542,560 3,520,467

64

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Year Revenue Guest Hotel Senior House & Condo Senior Nursing Home Health Care Services SPA

9 12,902,601 4,178,061 2,669,688 3,696,491

10 13,547,731 4,386,965 2,803,172 3,881,315

11 14,225,118 4,606,313 2,943,331 4,075,381

12 14,936,374 4,836,628 3,090,497 4,279,150

13 15,683,192 5,078,460 3,245,022 4,493,108

14 16,467,352 5,332,383 3,407,273 4,717,763

15

Total

17,290,720 167,418,353 5,599,002 54,212,647 3,577,637 34,640,669 4,953,651 47,964,003

926,094

972,399

1,021,019

1,072,070

1,125,673

1,181,957

1,241,055

12,016,582

1,688,064 12,960,000 4,006,585

1,772,467 0 4,206,915

1,861,091 0 4,417,260

1,954,145 0 4,638,123

2,051,853 0 4,870,030

2,154,445 15,552,000 5,113,531

2,262,167 15,552,000 5,369,208

21,903,561 78,624,000 51,987,650

645,130

677,387

711,256

746,819

784,160

823,368

864,536

8,370,918

43,672,715

32,248,351

33,860,768

35,553,807

37,331,497

54,750,072

5,065,262 757,177 932,885 810,718 188,526 955,131

5,318,525 795,036 979,529 851,254 197,953 1,002,887

5,584,451 834,787 1,028,505 893,817 207,850 1,053,032

5,863,674 876,527 1,079,931 938,507 218,243 1,105,683

2,136,690

2,243,525

2,355,701

2,473,486

6,156,857 920,353 1,133,927 985,433 229,155 1,160,967 1,555,200 2,597,160

6,464,700 966,371 1,190,624 1,034,704 240,613 1,219,016 1,555,200 2,727,019

10,846,389 32,826,326

11,388,708 20,859,642

11,958,144 21,902,625

12,556,051 22,997,756

14,739,054 22,592,444

15,398,246 39,351,826

14,535,199 150,640,375 42,174,777 326,498,008

Indirect Cost Administation 1,297,007 Sales & Marketing 412,621 Total Operating Expenses 1,709,627 Operating Profit (Loss) Before Fi 31,116,699

1,157,737 417,002 1,574,739 19,284,904

1,215,624 421,602 1,637,226 20,265,399

1,276,405 426,432 1,702,837 21,294,919

1,340,226 431,503 1,771,729 20,820,715

1,640,517 436,828 2,077,345 37,274,480

1,710,879 16,097,929 5,770,412 442,420 2,153,299 21,868,341 40,021,478 304,629,667

Fixed Cost Household Tax & Insurance 3,922,101 Depreciation 1,498,264 Long Term Loan Interest 993,183 Total Fixed Expenses 6,413,547 Net Profit (Loss) Before Taxes 24,703,151 Corporated Taxes 7,410,945 Net Profit (Loss) 17,292,206

2,443,126 1,498,264 843,183 4,784,573 14,500,331 4,350,099 10,150,231

2,565,688 1,435,676 693,183 4,694,547 15,570,852 4,671,256 10,899,596

2,694,378 1,435,676 543,183 4,673,237 16,621,682 4,986,504 11,635,177

2,635,103 1,435,676 393,183 4,463,962 16,356,753 4,907,026 11,449,727

4,691,824 1,435,676 243,183 6,370,682 30,903,798 9,271,139 21,632,659

5,035,198 38,566,411 1,435,676 93,183 13,604,564 6,564,057 74,331,988 33,457,421 229,697,352 10,037,226 68,909,206 23,420,195 160,788,146

3 Restaurants Membership Fee Other Facilities Misc Total Revenue Direct Cost Guest Hotel Senior House & Condo Senior Nursing Home Health Care Services SPA 3 Restaurants (25%) Membership Other Facilities Misc Total Directed Cost Gross Profits Before Operating

56,709,976 477,138,384 6,787,935 1,014,689 1,250,155 1,086,440 252,643 1,279,967 2,863,369

66,436,955 9,957,062 12,062,444 10,447,681 2,424,705 12,197,928 7,862,400 27,928,191

Pro-forma Profits & Losses

65

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Pro-forma Balance Sheet The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt obligations - as long as we can achieve our specific objectives The highlights of the balance sheets are a cash position of $ 152,626,038 and a net worth of $159,007,065 at the end of 15th year with debt free.

Start B/L

1

2

3

4

5

6

7

8

ASSETS Short Term Assets Cash and Bank Deposit Inventory Total Short Term Assets

1,540,541

907,700

8,508,212

17,176,860

22,000,673

300,000

300,000

300,000

300,000

300,000

1,840,541

1,207,700

8,808,212

17,476,860

22,300,673

28,019,704 34,548,814 300,000

41,488,054

55,835,004

300,000

300,000

300,000

28,319,704 34,848,814

41,788,054

56,135,004

Long Term Assets Land

6,081,027

6,081,027

6,081,027

6,081,027

6,081,027

16,256,757

16,256,757

16,256,757

16,256,757

16,256,757

5,278,378

5,278,378

5,278,378

5,278,378

5,278,378

5,278,378

625,878

625,878

625,878

625,878

625,878

625,878

28,242,041

28,242,041

28,242,041

28,242,041

28,242,041

1,498,264

2,996,527

4,494,791

5,993,054

8,989,581

10,487,845

11,986,108

28,242,041

26,743,777

25,245,514

23,747,250

22,248,986

20,750,723 19,252,459

17,754,196

16,255,932

30,082,581

27,951,477

34,053,726

41,224,110

44,549,659

49,070,427 54,101,274

59,542,250

72,390,936

Sub-Total Long Term Debt

31,863,662

31,863,662

30,863,662

29,863,662

28,863,662

26,863,662 24,863,662

22,863,662

19,863,662

Total Debt

31,863,662

31,863,662

30,863,662

29,863,662

28,863,662

26,863,662 24,863,662

22,863,662

19,863,662

Building & Infrastructure Tools, Equipmens and Furniture Vehicle Sub-Total Long Term Assets Accummulated Depreciation Total Long term Assets Total Assets

6,081,027

6,081,027

6,081,027

16,256,757 16,256,757

6,081,027

16,256,757

16,256,757

5,278,378

5,278,378

5,278,378

625,878

625,878

625,878

28,242,041 28,242,041

28,242,041

28,242,041

7,491,318

DEBT & EQUITY Short Term Liabilities Accounts Payable Sub-Total Short Term Liabilities Long Term Liabilities

Equity In Paid Capital

594,594

594,594

594,594

594,594

594,594

594,594

594,594

594,594

SubTotal Equity

-1,781,081

-3,912,185

3,190,064

11,360,447

15,685,997

22,206,764 29,237,611

594,594

36,678,587

52,527,274

Total Debt & Equity

30,082,581

27,951,477

34,053,726

41,224,110

44,549,659

49,070,427 54,101,274

56,542,250

69,390,936

Net Worth

-1,781,081

-3,912,185

3,190,064

11,360,447

15,685,997

22,206,764 29,237,611

36,678,587

52,527,274

66

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

9

10

11

12

13

14

15

ASSETS Short Term Assets Cash and Bank Deposit Inventory

71,625,473 80,273,968 300,000

Total Short Term Assets

89,609,240

99,680,092

109,565,495

129,633,830

152,626,038

300,000

300,000

300,000

300,000

300,000

300,000

71,925,473 80,573,968

89,909,240

99,980,092

109,865,495

129,933,830

152,926,038

Long Term Assets Land

6,081,027

Building & Infrastructure Tools, Equipmens and Furniture Vehicle Sub-Total Long Term Assets Accummulated Depreciation Total Long term Assets Total Assets

6,081,027

6,081,027

6,081,027

6,081,027

6,081,027

6,081,027

16,256,757 16,256,757

16,256,757

16,256,757

16,256,757

16,256,757

16,256,757

5,278,378

5,278,378

5,278,378

5,278,378

5,278,378

5,278,378

5,278,378

625,878

625,878

625,878

625,878

625,878

625,878

625,878

28,242,041 28,242,041

28,242,041

28,242,041

28,242,041

28,242,041

28,242,041

13,484,372 14,982,635

16,418,311

17,853,986

19,289,662

20,725,338

22,161,014

14,757,669 13,259,405

11,823,730

10,388,054

8,952,378

7,516,703

6,081,027

86,683,142 93,833,373

101,732,969

110,368,147

118,817,874

137,450,532

159,007,065

DEBT & EQUITY Short Term Liabilities Accounts Payable Sub-Total Short Term Liabilities Long Term Liabilities Sub-Total Long Term Debt

16,863,662 13,863,662

10,863,662

7,863,662

4,863,662

1,863,662

0

Total Debt

16,863,662 13,863,662

10,863,662

7,863,662

4,863,662

1,863,662

0

Equity In Paid Capital

594,594

594,594

594,594

594,594

594,594

594,594

SubTotal Equity

69,819,479 79,969,711

594,594

90,869,307

102,504,484

113,954,211

135,586,870

159,007,065

Total Debt & Equity

86,683,142 93,833,373

101,732,969

110,368,147

118,817,874

137,450,532

159,007,065

Net Worth

69,819,479 79,969,711

90,869,307

102,504,484

113,954,211

135,586,870

159,007,065

Pro-forma Balance Sheet

67

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Ratios Analysis The sale cost (directed cost) is approximately 32% of the Sale Value while the Operating Expenses (indirect cost) are 5% is sound good. Gross margins of 74% are excellent, Operating Profit Margin 71% and Net Profit Margin 41% are pretty good. All ratios are in good shape for traditional borrowing to fund further growth.

Year 1

2

3

4

5

6

7

8

Gross Margin

0.74

0.73

0.62

0.64

0.64

0.60

0.72

Operating Profit Margin

0.69

0.68

0.56

0.59

0.59

0.55

0.69

Net Profit Margin

0.35

0.33

0.23

0.27

0.28

0.27

0.38

Return On Assets ( ROA)

0.21

0.20

0.10

0.13

0.13

0.12

0.22

Return On Equity (ROE)

-1.82

2.56

0.38

0.42

0.32

0.25

0.43

Direct Cost to Total Revenue Ratio

0.26

0.27

0.38

0.36

0.36

0.40

0.28

Indirect Cost to Total Revenue Ratio

0.06

0.05

0.06

0.05

0.05

0.05

0.04

Fixed Cost to Total Revenue Ratio

0.24

0.21

0.23

0.20

0.19

0.17

0.15

Debt to Equity Ratio

9.67

2.63

1.84

1.21

0.85

0.62

0.38

Debt Ratio

0.91

0.72

0.65

0.55

0.46

0.38

0.27

8.86 10.92

7.04

9.73 10.99 12.32 25.31

Prifitibility Ratios

Expenses Ratios

Debt Ratios

Liquidity Ratios Interest Coverage Ratio Investment Ratos Internal Rate of Return (IRR)

-0.17

-0.07

0.05

0.05

0.11

Net Present Value (NPV) - 5% Discounted Rate Pay Back Period

At the end of 5th year.

68

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Year

9

10

11

12

13

14

15

Gross Margin

0.75

0.65

0.65

0.65

0.61

0.72

0.74

Operating Profit Margin

0.71

0.60

0.60

0.60

0.56

0.68

0.71

Net Profit Margin

0.40

0.31

0.32

0.33

0.31

0.40

0.41

Return On Assets ( ROA)

0.20

0.11

0.11

0.11

0.10

0.16

0.15

Return On Equity (ROE)

0.33

0.15

0.14

0.13

0.11

0.19

0.17

Direct Cost to Total Revenue Ratio

0.25

0.35

0.35

0.35

0.39

0.28

0.26

Indirect Cost to Total Revenue Ratio

0.04

0.05

0.05

0.05

0.05

0.04

0.04

Fixed Cost to Total Revenue Ratio

0.15

0.15

0.14

0.13

0.12

0.12

0.12

Debt to Equity Ratio

0.24

0.17

0.12

0.08

0.04

0.01

0.00

Debt Ratio

0.19

0.15

0.11

0.07

0.04

0.01

0.00

Prifitibility Ratios

Expenses Ratios

Debt Ratios

Liquidity Ratios Interest Coverage Ratio

31.33 22.87 29.24 39.20 52.95

153.28 429.49

Investment Ratos Internal Rate of Return (IRR)

0.15

0.16

0.18

Net Present Value (NPV) - 5% Discounted Rate

0.18

0.19

0.20

0.21

73,658,902

Pay Back Period Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total

Incomes -30,863,662 -2,131,104 7,102,249 8,170,384 4,325,550 6,520,767 7,030,847 7,440,976 15,848,686 17,292,206 10,150,231 10,899,596 11,635,177 11,449,727 21,632,659 23,420,195 160,788,146

IRR

-17% -7% 0% 5% 11% 15% 16% 18% 18% 19% 20% 21%

NPV Rate 5% 4,294,262 10,811,568 13,685,913 1,664,346 22,044,406 26,031,018 35,007,650 43,956,533 47,797,995 51,591,203 55,304,862 58,454,187 66,076,333 73,658,902

Financial Analysis Ratios

69

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

Financial Benchmark

Financial Benchmark US$ 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 -20,000,000 Capital Sales Value Net Incomes

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 0

20,50 24,80 18,71 23,86 25,05 27,85 42,21 43,67 32,24 33,86 35,55 37,33 54,75 56,70

-2,13 7,102 8,170 4,325 6,520 7,030 7,440 15,84 17,29 10,15 10,89 11,63 11,44 21,63 23,42

Outstanding Loan 31,86 30,86 29,86 28,86 26,86 24,86 22,86 19,86 16,86 13,86 10,86 7,863 4,863 1,863 0 907,7 8,508 17,17 22,00 28,01 34,54 41,48 55,83 71,62 80,27 89,60 99,68 109,5 129,6 152,6 Cash Balance Equity

-1,78 3,190 11,36 15,68 22,20 29,23 36,67 52,52 69,81 79,96 90,86 102,5 113,9 135,5 159,0

Year

Financial Benchmark

70