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EXECUTIVE SUMMARY

Grand Bahama Port Authority

and related

Grand Bahama Island Development

Confidential
Subject to NCND with Sellers
Pleaseabsolutely no reproductions or disseminations

Overview
Grand Bahama Island is located fifty-five (55) miles off the coast of Palm Beach County, Florida. A
significant portion of the island (approximately 1/3) is under control of Port Group Limited (PGL) and the
Grand Bahama Port Authority (GBPA). PGL and GBPA are private entities that are owned by
Intercontinental Diversified Corporation (IDC), which is in turn owned by the estates of two British
families (Hayward and St. George). IDC owns and operates the majority of Grand Bahama Islands
economic, government, and social infrastructure, The GBPA is a tax-free zone that was created in 1955
with the signing of the Hawksbill Creek Agreement (HA), in which the Bahamian Government ceded
most government functions to the GBPA. The HA allows IDC to own and operate approximately 230
square miles of the island until 2054. The agreement is similar to the agreement that governed Hong
Kong for 100 years.
The IDC operating entities generate revenue and profits from low variability business operations as
outlined below:
Grand Bahama Utility Company: Provides water collection and distribution services, garbage and
sewage collection and disposal services in Grand Bahama. 100% owned by IDC.
Bourbon Street Limited: Owner and operator of Port Lucaya Marketplace. 100% owned by IDC.
Freeport Industrial and Commercial: Sells and leases commercial land on the island of Grand
Bahama. 100% owned by IDC.
Port Lucaya Resort and Yacht Club: Operates the hotel resort inclusive of a lodging house, hotel,
restaurant, caf, roadhouse, motel, holiday camp, caravan site and apartment house keepers.
100% owned by IDC.
Grand Bahama Development Co: Responsible for developing selling and leasing land on Grand
Bahama Island. Joint venture 50% owned by IDC and 50% owned by HWL.
Freeport Harbor Company: Operator and developer of a deep water harbor in Freeport, Grand
Bahama Island. Joint venture 50% owned by IDC and 50% owned by HWL.

Grand Bahama Airport Company: Operates the International and Domestic Airport in Freeport,
Grand Bahama Island. Joint Venture 50% owned by IDC and 50% owned by HWL.
Urban Sanitation Services: Responsible for the majority of garbage collection and ancillary
services on Grand Bahama Island. Joint Venture 50% owned by IDC and 50% owned by Veolia
Environmental Services.
Sea Air Business Center: A 786 acre park earmarked for the development of warehousing and
distribution facilities. Joint Venture 50% owned by IDC and 50% owned by HWL.
Grand Bahama Shipyard: Responsible for completing repair, maintenance and refit services
primarily for the ships of Carnival Cruise Lines and Royal Caribbean Cruise Lines. Joint Venture
20% owned by IDC and 80% owned by Carnival Cruise Lines and Royal Caribbean Cruise Lines.

Considerations
Currently, operational return on the IDC assets is only about 8-10%. However, based on strong
management, proper marketing, and sagacious asset development, we consider the upside potential to be
considerably higher, in the 25-30% range. In addition to the obvious recreational resources/additional
possibilities and the value-added manufacturing park already in existence, we are proposing a hotelgaming entity, a waste-to-energy project, and for a medical-vacation hospital-resort function.
Consideration is also being given to developing the islands potential as a financial center.
Proposal
Jubilee Grand Corporation hereby applies for equity capital financing in the amount of $606,900,000.00
to purchase from Sir Jack Hayward (SJH) and the St. George Family (Trust) 92.5% of the shares of
Intercontinental Diversified Corporation (IDC) which owns Port Group Limited (PGL) and the Grand
Bahama Port Authority (GBPAand for related development of GBI assets. 7.5% of the IDC shares are
owned locally by various small holders. Eight percent (8%) of the purchased shares would be distributed
to assisting individuals and/or their designees.
Strategy
We propose to acquire the IDC shares and then swap IDC ownership of port-related assets for 100%
ownership of non-port assets jointly held with HWL. (It is important to note that GBPA would still
maintain effective control over HWL because of GBPAs permitting authority and the fact that there is no
exclusivity clause in the HWL operating agreement with GBPA.) The last appraisal of the real estate,
alone, was approximately $500 Million. These land assets are comprised of more than 11,600 acres along
the southern coast of Grand Bahama Island including a 13 miles of beachfront property. They are wellsuited for high-end second homes, enclaves/compounds and for other leisure and recreational
development, particularly as related to tourism, recreation and yachting. And, if properly marketed, the
tax environment and comparatively less-expensive island costs should make Grand Bahama a magnet for
value-added production destined for the US. This island is woefully underdeveloped and its upside
potential for economic growth is remarkable.

Amount and schedule of funds required

Round 1: $84.265M (available on or before 12 August 2011):
$40 million for Grand Bahama Yacht Club
$5.9 million for the furnished boathouse model
$3 million for Port Lucaya Resort property
$5.868 million for government transaction fees
$15 million operating and marketing funds (includes transport vehicles)
$14.5 million for marketing, infomercials, advertising the special events that promote travel to
and development for GBI

Round 2: $294M (available on or before 12 September 2011):

$70 million for development of condos, boathouses, upgrading Port Lucaya Marina and
marketplace facelift
$224 million for IDC acquisition
Round 3: $171.5M (available on or before 12 October 2011):
$75 million for developing hotel, casino, high-end retail shops
$60 million for medical tourism center and trauma facility
$36.5 million for WTE facility

With the exception of the extensive real estate development phases described in the application,
this is a Buy/Build/Operate project, as opposed to a Buy/Build/Sell project. Of the 11,000 plus
acres of undeveloped land, we propose to divide them into compounds/enclaves of 10 acres and
up and market it primarily to wealthy clients, much as in Marthas Vineyard and other recessionproof locations. The same is true of the yacht club/marina real estate, except the development
will be primarily single lots and condominium units sold near the water.