Incheon MODO Yacht Business

Proposal

2014.7.25

EVENTS IN MODO- Modo is a small island located 5 minutes boat ride from Yeongjeong

Island (Incheon International Airport)

- Currently it has just over 20 residential homes

- It is famous for a sculpture park called 'Lee Il-Ho and Modo'.

- Korean Government has designated Modo to be “Events” Location and

created a program turn it into Ibiza of Northeast Asia

- This Events Promotion License has been obtained by a company –

Dragon Flying Production (http://www.dragonflying.co.kr/)

- Modo Events is business collaboration between Dragon Flying

Production, Sidus Entertainment (http://www.sidushq.com/) # 4

Entertainment Company in Korea and Cube Entertainment

(http://cubeent.co.kr/) # 5 Entertainment Company in Korea + Top 3

Clubs in Korea

PHOTOS OF 2014 “EVENTS”

PHOTOS OF 2014 “EVENTS”

MARKETING PARTNERS

SIDUS ENTERTAINMENT

SidusHQ is one of the leading talent management agencies in Republic of

Korea. It was founded in January 2001 . The company is known as the Asian

Entertainment Industry Powerhouse, involved in talent management (artist

content), and TV Drama, music production.

MARKETING PARTNERS

CUBE ENTERTAINMENT

Cube Entertainment is a South Korean record label founded in 2006.

Cube has a strategic alliance with iHQ. Cube owns A-Cube Entertainment and

Cube DC. The label's music is distributed by Universal Music Korea, CJ E&M

Music and Live and LOEN Entertainment

Cube artists include 4Minute, Beast, G.NA, Rain, BTOB, A Pink, Roh Ji Hoon and

Oh Ye Ri. A-Cube's current roster consists of Huh Gak . Cube DC artists consist

of Shin Ji Hoon and M4M. M4M is a group trained in collaboration with Chinese

company Xing Tian and will promote in China.

MARKETING PARTNERS

DRAGON FLYING PRODUCTION

It is one of the largest “events” production company in South Korea. It is

a leading production company that focuses on Festival, Club Resorts,

Advertisements, Promotions, Entertainment, Music Distribution and

On-Off Line Magazines. It is total solution company for “events” production

EVENTS such as;

- Brand Promotion Events for Ssangyong Automobile, Vespa Korea,

Mini Korea, BMW, CIROC, Jose Cuervo, Hite Beer, Ciroc etc

- Music Events for Melon, M-Net, Gladnews and J-Contentree

PROPOSED STRUCTURE OF COLLABORATION

- Holder of Exclusive Modo Island

Events License

- Events Production & Advertisements

- Marketing

- Artists

Club Octagon

Club

Top Korean Clubs

- Ticket Sales

- Events Promoter- SPC to provide Luxury Yacht for

1. VIP/VVIP “Seats” for Events

2. Platform for VIP/VVIP for Private Parties

during events

3. Private Hotels for VIP/VVIP

** Yachts will be docked at the events to provide

such services

USD ,000

▶Year 1 Assumption – 300 Rentals/Yacht/Year @ $ 2,000 per rent

Year 2 Assumptions – 400 Rentals/Yacht/Year @ 2,500 per rent

Year 4 Assumptions – 500 Rentals/Yacht/Year @ 2,500 per rent

▶ Life Time of Yacht – 20 Years

▶ Financing Rate assumed at up to 20% per annum

1. Financial Forecast – 3 Years

3. Investment Proposal – 6M USD Initial Investment

● Proposed Yacht :45~50 ft Catamaran

● Proposed Number: 5

● 45~50 ft Catamaran

● Second Hand Units: Built between 2008~2010; 50 ft in Europe

0.65~0.90 M USD

● From Second Hand Yacht Dealers in France and Italy

● Target Brand : Lagoon (French), Fountain Pajot (French)

Leopard (SA)

● Price per Yacht (Estimated) arrived & ready in Korea = 1M USD

● Operation Cost – 0.1M per Yacht = 0.5M

+ Setting Office & Marketing Cost = 0.5M

Proposed Structure

Initial Fund Required 6M USD

USD 1M - License

- Permits

- Marketing

Proposed Milestones

March April May June July Aug Sept

Company

Established

Exclusive Contract

with Marketing

Partners

Order Yachts

Build Yacht Birth

Operating License

Receive Yacht

Inspection of Birth

Yacht Registration

Begin Operation

Promotion &

Marketing