Suncadia Resort Financial Status

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RANDALL SMITH

Proposal for Monte CristoResort Project in Cozumel

24.07.2007

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For over 20 years, weve been telling the stories

of our clients. From Vancouver, to Vegas,

to Scotland, Design for Real Estate is there

offering unsurpassed industry knowledge and a

commitment to intelligent design.

1983 The Donald was still with Ivana. Paris

Hilton was just the name of a hotel. And Apple

was just about to introduce their Macintosh

computer. It was the year Fleming Creative Group

made its very humble debut.


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A division of Fleming Creative Group www.designforrealestate. com

Blueprints. Building codes.

Bearing walls.

Sre, these are all oponents o sond

real estate deelopent. Bt soething

een ore ndaental brings a real

estate proet to lie a opelling story.

DR is a ll serie design ageny that

has been helping real estate deelopers,

areters, and bilders tell their stories or

oer 20 years. We listen losely, loo deeply,

and thin boldly, obining the tie tested

traditions o storytelling words, pitres,

and possibilities with todays leading

design tehnologies.

We nderstand that eery real estate

proet is niqe. To ind the story in yor

niqe proet, we loo at all the angles.

Whats its origin? Whats the gae

plan? Whos interested? And why?

Then well shot yor story ro the

rootops by deliering print, diret ail,

enironental design, ltiedia, website

design, eail apaigns, presentation

entre aterial, prootional bzz,

all throgh eorable branding. At eery

phase o yor deelopent well be there

to help tell yor story eah piee niqe,

bt all speaing with a single oie.

How do we

measure success?

We beliee that in a good story yo

will reognize yorsel. Bt in a great

story, yor stoers will reognize

theseles who they are, the things

they ale, the dreas they hold.

snapsHot


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Telephone 604.669.2296 Toll-free 1.866.669.2296 Fax 604.669.2310

1237 Howe Street, Vancouver, BC V6Z 1R3 CANADA

A d ivis ion of F leming Creative Group www.designforrealestate . co m

September 25, 2007

Randall SmithMonte Cristo Resort CozumelBirmingham, AL

Hi Randall,

Thank you for asking Design for Real Estate (DfR) to quote on the Monte Cristo Resort inCozumel, Mexico. This is an exciting project that offers unique timeshare opportunities,

best-in-class amenities, and ocean-frontage on world-renowned Cozumel Island.

Were keen to explore this opportunity with you, and with nearly two decades of resort andresidential real estate marketing experience, its a project were well suited to.

The attached estimate is based on DfR creating the Monte Cristo brand and applying thatidentity to key print and interactive marketing collateral designed to help drive leads toyour sales agents. The proposal focuses on supplying you with the marketing tools neededto maximize the potential of your lead generation system (database of 680,000), cruiseship traffic (485,000/monthly), and other sales channels.

As discussed, we can also quote on the graphic design requirements for theSales/Presentation Center in Cozumel, should you decide that this is required. We wouldquote on this separately, as Phase II of the Monte Cristo Resort Project.

Following the estimate, Ive included an overview of our capabilities and portfolio samplesfor your colleagues who may not be familiar with DfR. Ive also included a few brochuresamples from some of our recent resort and luxury residential projects.

Once again, Randall, thank you for the opportunity to present you with our proposal. Fromthe appeal of owning affordable beach-front, to the best-in-class amenities, we believe thatthe Monte Cristo Resort in Cozumel has a number of great stories to tell. We look forwardto bringing these stories to life. I will call you next week for your thoughts and feedback onthis proposal. In the meantime, please contact me at your convenience if you have anyquestions.

Sincerely,

Mark RossAccount Director, Design for Real Estate


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MONTE CRISTO RESORTCOZUMEL, MEXICO DEVELOPMENT PROJECT

The following is a breakdown of project activities and estimates for the design anddevelopment of the marketing campaign for the Monte Cristo Resort project in Cozumel,Mexico. Our approach is to provide you with key marketing collateral and in the rightsequence to maximize the potential of your lead generation system (database of680,000), cruise ship traffic (485,000/monthly), and other sales channels. Youll noticethat the estimate includes the elements I sent you in an earlier email, as well as a fewadditional items that we feel will have an impact on your sales efforts, and should beconsidered.

Strategy SessionIn our experience, an on-site strategic planning session at the outset of a project isinvaluable. It enables the extended project team to discuss and come to agreement onthe overall marketing strategy, and sets the campaigns broad creative direction. Theconsolidated notes from the session also help to ensure that the project team stays onthe same page throughout the life of the project.

Strategy Session discussion points that would help determine the creative direction, aswell as what message and mediums will be most effective, could include:

Buyer profile, behavior characteristics, and purchase criteria for primary,secondary, and tertiary target markets

Effects of current real estate and economic conditions on fractional-ownership/timeshare resort properties

Competitive Analysis who are the real (other timeshare resorts), and potential(all inclusive resort hotels, cruise operators, etc.) competitor, and what is ouradvantage over them

DfRs participation in this stage of the project includes a full-day of preparation andresearch, and partaking in a full-day strategy session on-site with the extended projectteam. Includes participation from the DfR team of three/four persons (Designer,Design Director, Project Manager, and Copywriter), pre- and post-session teambriefing and debriefing. $10,000 - $15,000Notes:

DfR will prepare for, participate in, and forward all our Strategy Session roughnotes to the client

The client is responsible for any event facility or equipment rental, the hiring of afacilitator, on-site expenses such as catering, meeting supplies, etc. should any ofthese elements be required

Travel and accommodation to and from the session location would be additionalexpenses not included in the above figure


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Project Identity (name, logo & tagline)Includes exploration and creation of theme, and showcasing options as mood boards(mood boards depict a visual and graphic approach through pictures, colours, andtypography) to establish creative direction, from which the entire campaign will evolve;concepting and presentation of name options (based on using/modifying the client-supplied name Monte Cristo), as well as up to three logo and tagline concepts, colourpalette options, design refinement, and production of client-selected logo to finalelectronic artwork.

Overall creative direction/project theme $5,000 Logo $4,500 Name & Tagline $1,500

$11,000PhotographyStunning photography is essential to any resort real estate project. Potential buyersshould see themselves in the images used to sell a resort project and the lifestyle itrepresents. The budget may seem expensive, but it is crucial to the success of thecampaign, as it is applied to every component from ads, brochures, and direct mail,to the website, and sales center and needs to be on a world-class level to speak tothis international audience.

For a project of this type, we anticipate a combination of custom and stock

photography, as well as imaging work to client-supplied photos for use in variousapplications. A photo shoot on location is the most cost-effective way of getting thecustom signature images that will come to represent the Monte Cristo Resort brand.Where possible we use royalty-free stock photography that costs from $450 to $800per image for search and usage rights.

Custom photo shoot $20,000 - $30,000 Stock images search and purchase $10,000 - $13,000$30,000 - $43,000

Note:This quote does not include travel and accommodation expenses for site audit, and on-site photo shoot. Also, if required, a video shoot/production could be added atadditional cost.


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AdvertisingDesign, copywriting, and production to final electronic artwork of teaser, coming soon,and grand opening ads using existing theme/concept, copy/image/graphic elements.Production liaison and file transfer for initial insertions only.

Ad templates shell design $6,500 Inserts (re-layout/content changes $400-$700/per x2) $800 - $1,400 Inserts (minimal size/copy changes $150- $400/per x3) $450 - $1,200$7,750 - $9,100

Direct Marketing CampaignResearching/brainstorming/concepting an innovative direct marketing campaign (mailand email series) targeting the 680,000 names in the lead generation database, andother leads as appropriate. While the details need to be explored in more detail, ourinitial recommendation is to start the campaign with a teaser/coming soon piece,then build momentum through subsequent follow-up now selling pieces as there ismore to show and tell about the resort. Each piece would include a call to action toregister at the Monte Cristo website for a personalized sales call, or to RSVP for a VIPsales event.

Includes design, copywriting, and final artwork, using copy/image/graphic elementsfrom existing brochure, of a direct mail and email campaign series to final electronicartwork.

Brainstorm/research/develop strategy and concepts $3,000 - $5,000 Design/refine/production of print series to final art $8,000 - $10,000 Design/refine/production of email series to final art $2,500 - $5,000$13,500 $20,000Note:Cost depends on the number of pieces in the print and email series, the series content(i.e. design, production, and inclusion of a video or virtual tour will add additionalcosts), and the specifications for each piece. The estimate does not include printcoordination/press proofing or printing fees; nor does it include management,distribution, or metrics for the email campaign. These can be estimated when further

specifications are defined.


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WebsiteDesign a website of approximately 20 pages. Based on input to date, the website willfocus on driving pre-lease leads/registration and would likely include the followingcontent sections: Homepage, Photo Gallery/Tour, Development Overview, LocationMap, Area/Project Amenities, Floor Plans, and Registration. This quote is intended as arough estimate only, as key design considerations (Flash vs. HTML, or hybrid site,Video/Virtual Tour, Content Management Solution, Prospect Management Solution,etc.) are still to be determined. Once the content and technical specifications areconfirmed, well present a revised estimate.

$30,000 $40,000

Note:For the sake of comparison, the website we designed for Laguna Parkside(www.lagunaparkside.com) cost approximately $35,000, and the site we created forThe Resort at Squaw Creek (www.squawcreekliving.com) cost roughly $65,000. Inboth cases, photography, video, renderings, etc. were an additional expense.

BrochureDesign, image concept/search/selection (from client-supplied assets or frompurchased stock images see previous item), copywriting, and production to finalelectronic artwork, of a full-colour 12-page brochure (eight internal pages plus onefour-panel cover). Up to two sets of minor revisions are included, but once designdirection, format, and theme are committed to and work commenced, any significantchanges will be quoted on as a change order.

$20,000 - $25,000Notes:

Should the brochure require additional panels, budget $1,200 1,500 per. Printing estimates will be sourced once the brochure specifications have been

determined. We anticipate that it will cost $12,000 - $15,000 to print 1,000brochures.

Should a detailed area/amenities map be required, it would cost $3,000 - $4,000.This includes research and referencing, drawing/illustrating/plotting, productionof legend (if required), production of map to electronic artwork (for furtherapplication within brochure or presentation centre). Updates to an existing client-supplied map would cost $2000 - $2,500 to illustrate/draw/typeset changes tothe map.


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Brochure Inserts (assuming 6 inserts)One-sided, 8.5" x 11" site plan, features, floor plans, construction details, etc. Includesdesign and production of final art of insert template, clean-up of floor plan files,individual layout of content to template, production to final art, coordination, andprovision of electronic files.

Template shell design $1,000 Insertion of content ($400-$500/per x6) $2,400 $3,000$3,400 $4,000Note:Cost will depend on workability of files provided by the architect and amount of

conversion and clean-up required. We would liaise with your architect early in theprocess.

SignageInitial site audit, design, production to final electronic artwork, of main sign (includingComing Soon and Now Selling add-ons), directional sign, A-boards, open hourssign, display suite markers, parking sign, hoarding, Presentation Center exteriorsignage, and billboards. Thought will also be given to how to modify signage (ifappropriate) for subsequent phases.

$6,500 - $8,500Note:

Quote does not include travel and accommodation expenses for site audit Fabrication or installation costs are additional, and can be quoted once the design

direction is established Installation depends on site conditions and bylaw requirements

StationeryDesign and production to final electronic artwork of Monte Cristo Resort brandedletterhead, envelope, business card template, thank you card/envelope, and guestsurvey card. $3,500 - $4,500


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BUDGET ESTIMATE SUMMARYProject Briefing $10,000 - $15,000

Project Identity (name, logo, tagline) $11,000

Photography $30,000 - $43,000

Advertising $7,750 - $9,100

Direct Mail Campaign $13,500 - $20,000Website $30,000 - $40,000

Brochure $20,000 - $25,000

Inserts (assuming 6) $3,400 - $4,000

Signage $6,500 - $8,500

Stationery $3,500 - $4,500Grand Total $135,650 - $180,100

ADDITIONAL CONSIDERATIONS Custom Illustrations: if required, are additional and may be estimated once

requirements are understood and design style/direction is established.

Print Supplier Liaison and Press Checks: If you would like DfR to liaise with printsuppliers on your behalf to facilitate the receipt of printing quotes and attend allpress checks, our time will be billed at an hourly rate of $111. Should you requireDfR to handle printing, all printing purchased through DfR is subject to an agencymark-up of 20 per cent.

Expenses: Courier, shipping, printing and manufacturing, travel time and relatedexpenses are additional.

Deposit and Billing Procedure: The preceding prices are subject to finalspecification, and are subject to refinement should the project scope be adjusted.Prices are subject to applicable taxes, and expenses. Prices are valid for thirty (30)days and are subject to escalation in materials and labour after that date. Uponagreement of our proposal in principal, we will provide you with a Credit

Application, Letter of Agreement, Terms and Conditions, and a Request forDeposit.


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A division of Fleming Creative Group www.designforrealestate

Squaw Creek AssociatesThe Resor t at Squaw Creek

THE CHALLENGE

Launch an interactive campaign to help

leading developer and property manager

Lowe Enterprises attract sales for luxury

hotel suites that were now available for

whole-ownership.

THE APPROACH

DfR built momentum using successive

interactive elements. Details about the area,

the Resort, and the of fering were presented

through emails, a teaser website, a full Flash

website, a motion-based sales presentation,

and a touchscreen presentation-centre kiosk.

THE RESU LTS

With most of the suites spoken for

immediately, the campaign was one of the

most successful launch events in California

real estate history. The experience continue

with email updates and customized invitation

sent to owners throughout the year.


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Lowe EnterprisesTumble Creek

THE CHALLENGE

Design an interactive campaign to foster

excitement among potential customers

about the possibility of owning a luxury

homesite in the exclusive community of

Tumble Creek in Suncadia, Washington.

THE APPROACH

Highlight the communitys main attractions

of world-class golf and the outdoors through

successive interactive components that

included email sign-ups, a full Flash website,

a touchscreen kiosk for the presentation

centre, and a WebEx-based presentation.

THE RESULTS

Tumble Creeks first day of sales was a

phenomenal success with over 100 of

the 150 available units purchased almost

immediately. This success set the stage

for consideration of developing further

opportunities in the area.


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Suncadia L.L.C.

The Lodge at Suncadia

THE CHALLENGE

Sell a spectacular luxury resort offering

in the heart of Washington State over

the Internet.

THE APPROACH

DfR created, in effect, an interactive photo

album to showcase both the luxury resort

features and the areas striking scenery.

The campaign continued with other

elements that connected potential buyers

with the experience of living at The Lodge.

THE RESULTS

With nearly $54 million worth of the luxury

condominium homes sold, The Lodge had

a record-setting first day of resort sales in

Washington State. Over 100 buyers snappe

up Suncadias newest offering, pleased to b

first to own in the region.


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Lyle Anderson CompanyLoch Lomond

THE CHALLENGE

Implement an interactive pre-launch

international sales program for

memberships to an exclusive private

members golf club in Scotland.

THE APPROACH

Focusing on the majesty and tradition of

the distinguished golf course, the campaign

involved targeted email send-outs and the

creation of a website that showcased the

clubs stunning landscape and picturesque

scenery.

THE RESU LTS

The email campaign and website were

a great success in attracting a worldwide

VIP member base. DfR is now working

on ongoing updates as the exclusive club

expands its grounds with more world-class

golf opportunities.


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THE CHALLENGE

Create an identity for a 1,500-acre

masterplanned resort community

on Vancouver Island, complete with

18-hole golf course, marina, hotel,

and residential community.

THE APPROACH

Following a two day envisioning session,

the theme Guess what I did today?

informed all materials, with images

highlighting the three key attributes:

natural setting, individuality, and

diverse activities.

THE RESULTS

The approach met with acceptance

by the public and potential clients of

the resort. A new residential subdivision

and community centre signified strong

acceptance of Fairwinds.

Origin HomesFairwinds Community and Resort


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THE CHALLENGE

Create inspirational marketing collateral

for two luxury towers proposed for

Vancouvers prestigious Coal Harbour

waterfront.

THE APPROACH

Drawing upon the celestial constellation

of Callisto, DfR launched a dramatic and

memorable print and advertising marketing

campaign. Our aim was to establish strong

brand recognition on the waterfront and

attract international purchasers.

THE RESU LTS

Over 60% of the development sold within

the first three months and set an average

selling price well above other prices in

the area at the time. Callisto and Carina

became home to business professionals

from Vancouver and around the globe.

Delta Land GroupCall isto, Coal Harbour


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THE CHALLENGE

Create a dramatic and distinct campaign

to create buzz for a luxury development

by Polygon Homes situated in the heart

of one of Vancouvers most esteemed

communities.

THE APPROACH

Taking inspiration from renowned

fashion photographer Richard Avedon,

the campaign was a stand-out with

its strong palette of black, white and

red, flowing lines, and monochromatic

photography. Avedons sophisticated

New York vibe and classic features were

carried through all marketing collateral.

THE RESU LTS

As one of the first luxury high-rise

developments in the desirable South

Granville area, sales were a resounding

success. With only 45 suites offered,

a high percentage of them sold on the

first day.

Polygon HomesAvedon


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Polygon HomesAvedon


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award-winning creative,

certainly. But also, m ucH

more tHa n tHat.

We will easre orseles (and as yo

to easre s) against the ollowing ie

giding priniples. We deeloped these

standards to help s stay tre to the ales

on whih wee bilt or bsiness.

design for unde rstanding

Its not enogh or design to be eyepopping.

It has to eetiely oney inoration.

Hae we sed design to ae yor

essage ore lear, ore eaningl?

storytelling

Hae we told yor story in a way thats

opelling to yor stoer? Did they

lagh? Did they by? Did they inest?

Did they nderstand who yo are, where

yore going, and how yo an help the?

entHusiasm

Are we approahing yor proet

with energy and enthsias? Are or

ideas resh? Hae we broght the ll

strength o or obined experiene

and nowledge to yor proet?

communication

Are we asing the right qestions?

Are we listening to what yo really

want? Are we proiding yo with

ongoing and onsistent pdates as

to proet stats and bdget?

integrity

Hae we learly spelled ot the osts

inoled? Hae we proided sond and

eonoial options so that yo an

ae a lear hoie o ation? Are we

deliering on what we proised?

expectations


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design process

We nderstand that eery real estate

proet is dierent. Experiene has also

taght s that there are innerable

eleents inoled in real estate apaigns.

We appreiate these details. We are

able to inetne or design proess to

aoodate yor proets speii

reqireents. Bt generally, one thing is

onstant. Well need to as a lot o qestions

that get to the heart o yor proet.

Well want to hear abot yor ision,

learn abot yor preerenes, and ind

ot abot yor opetition. Well set p

an initial eeting to disss yor proet,

explore the arios oponents, and

haer ot all the nitty gritty details.

Proess? Yo betha. Last tie we

onted there were at least 72 steps

to oplete a typial proet. Bt yor

proets not typial. Yor proet ight

reqire 26 steps or 81. Or ollaboratie

proess is designed to aoodate

yo. Not the other way arond.


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projects

AmERIcAN NEvADA cOmPANY

Bella vista

BASTION DEvELOPmENT

montrex

BAYSHORE GARDEN DEvELOPmENT

Bayshore Garden

DELTA LAND DEvELOPmENT

carina at coal Harbor

callisto at coal Harbor

INTRAcORP DEvELOPmENTS

Arbts Hill

INTERGuLf DEvELOPmENT GROuP

Braa at Westgate Par

LAkESHORE DEvELOPmENTS

Walnt Beah Resort

LEDINGHAm mcALLISTER

kensington cort

Tohstone

LIBERTY HOmES

Tango

LOWE ENTERPRISES

Resort at Sqaw cree

Tble cree

Terranea Resort

LYLE ANDERSON cOmPANY

Loh Loond

ORIGIN ADuLT cOmmuNITIES

fairwinds conity & Resort

PARkLANE HOmES

Sothport

POLYGON HOmES

Altaire

Ashobe

Aedon

Bentley

collage

copton

fondry

Gallery

Harest Wynde

klahanie (inldes Inglenoo, Indigo,

Salal, Tides, Sahalee & Nahanni)

Lanesborogh

Leighton Green

Sothapton

mir

POLYGON HOmES (ontd)

Panoraa Plae (inldes Broolands,

Gillis Wal, The uplands & Oalands)

Pepperwood

Sara

Waterolors

Wellington cort

PORTRAIT HOmES

Siler Ridge

PRImA PROPERTIES

Lagna Parside

SAjE ENTERPRISES

Serland Resort

TOWNLINE GROuP

copass

uNImONT

100 Laeshore Drie

WALL fINANcIAL

metropolitan Towers

WESBuILD

Bre montain


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weBsites

DELTA LAND DEvELOPmENT

proets.designorrealestate.o/allisto

LAkESHORE DEvELOPmENTS

www.walntbeahresort.o

LOWE ENTERPRISES

www.sqawreeliing.o

www.tbleree.o

www.disoerthelodge.o

LYLE ANDERSON cOmPANY

www.lohloond.o

OvATION DE vELOPmENT

projects.designforrealestate.com/orchardswalk

POLYGON HOmES

www.polyhoes.o

proets.designorrealestate.o/gallery

proets.designorrealestate.o/iro

PRImA PROPERTIES

www.lagnaparside.o


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contact

How to get in

toucH witH us.

doug fleming, Partner

[email protected]

marK ross,Account Director

[email protected]

Phone: 604.669.2296

fax: 604.669.2310

Toll free: 18666692296

fleing creatie Grop

128 West 8th Aene

vanoer, British colbia

cANADA v5Y 1N2

view or orporate website at:

www.leingreatiegrop.o

view or ost reent wor at:

www.designorrealestate.o


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Telephone 604.669.2296 Toll-free 1.866.669.2296 Fax 604.669.2310

128 West 8th Ave., Vancouver BC, Can ada V5Y 1N2

Suncadia Resort Financial Status

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