AFTER COMPLETION OF CONSTRUCTION

AVALON SALES OF SEASONAL HOMES AND RESORT ROOMS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6

UNITS  FOR  SALES PROJECTED  SALES   PRICE TOTAL

SEASONAL HOMES
SMALL 120 120 80000 $ 9,600,000
MEDIUM 120 120 90000 $ 10,800,000
LARGE 120 120 100000 $ 12,000,000

RESORT ROOMS
4 WEEK 32 16 64000 $1,024,000
2 WEEK 68 34 40000 $1,360,000
1 WEEK 200 100 24000 $2,400,000
WEEKEND 200 100 8000 $800,000

TOTAL SALES $ 37,984,000

SALES EXPENSE 10.5% $ (3,980,723)
NET SALES $ 34,003,277 $ 11,000,000 $ 11,000,000 $ 12,000,000
FINANCIAL PACKAGE MEMO

To: Stephan
From: Michael Woods
Date: January 31, 2011
Re: Avalon Springs

Also attached to my email are the following documents briefly explained below;

• Avalon Springs with Seasonal Home and Resort Room Sales

o These projections assume that we meet our business plan
• Avalon Springs with No Home or Room Sales
o These projections assume that we complete phase 1 construction, successfully manage
the resort and are unable to sell any seasonal homes or resort rooms
• Avalon Springs with Two Yr Delay and Seasonal Home & Room Sales
o These projections assume that we take an additional two years to raise our investment
capital and then we meet our business plan
• Avalon Springs with Two Yr Delay
o These projections assume that we take an additional two years to raise our investment
capital, complete our phase 1 construction, successfully manage the resort and are
unable to sell any seasonal homes or resort rooms
• Avalon Springs with Half Capital Raised
o These projections assume that we raise half the investment capital complete a modified
phase 1 construction, successfully manage the resort and are unable to sell any seasonal
homes or resort rooms
• Sales of Seasonal Homes and Resort Rooms
o These projections illustrate the type of houses and rooms that we will be selling to our
members
• Construction Budget Phases 1&2
o These projections were estimated by our architect and building contractor

As you can see, we've planned for various contingencies, considering the interesting economy and
potential ongoing changes. I'm happy to share our various back-up plans with you. However, I'm
feeling quite confident that our business plan will move forward, that the seasonal homes and resort
rooms will sell and this scenario will represent our development. This expectation has been
strengthened by our observations that similar projects (Mayacamas Ranch near Calistoga on the way
to Santa Rosa) are doing strong business and growing in our sector – eco-green sustainable resorts and
retreats.