McGehee Cruise & Vacation, Inc.

An Association of Independent Agents

(June 17, 2004)

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What are the basic start up costs to sell cruises and vacation packages from your home base?

$250    Current Initial Enrollment (waived when starting with group bookings)

   75      Current Professional Liability Insurance

Why is there an initial enrollment fee of $250?

There are certain administrative expenses involved in processing the contract and establishing a Home Based Agent on the independent contractor agency list. This enrollment fee can be returned to you by registering and completing the requirements for our Quick Start 90 Day Program. (This fee is waived when you start with immediate cruise group bookings and individual cruise or tour package bookings.)

What is the Quick Start 90 Day Program?

This year Carnival Cruise Lines is making a special offer to our Home Based Agents. Sell a minimum of 10 cabins (2 passengers in a cabin) within the first 90 days on one of their 7 night or longer cruises and you will receive a $25 per cabin credit at the time of final payment. Once all 10 cabins have cruised you will receive a check for $250. Consider promoting a Carnival group during your first 90 days and you can earn it back in a hurry.

Is Professional Liability Insurance required?

Yes. The $75 payment is required for all Home Based Agents to be listed as an independent contractor on our Professional Liability Insurance. Under our policy, you will have $1 million in coverage on all of your McGehee Cruise & Vacation, Inc. bookings. Complete details are provided in your copy of the policy. The $75 is due when you enroll in the Home Based Agent program and on March 1 of each year.

What are the reoccurring annual costs?

$ 120   Annual fee due March 1 of each year.

     75    Professional Liability Insurance due March 1 of each year.

Can I receive travel benefits?

Yes. You will be eligible to apply for travel benefits normally offered to travel agents when you meet all the rules set forth by IATAN, the airline run organization which issues photo ID cards currently at a cost of $25 per year. Airlines, hotels, car rental companies, cruise lines, vacation package companies, and other suppliers often require the IATAN ID card when providing travel agent discounts. There is a waiting period and you must earn at least $5,000 per year from travel sales with McGehee Cruise & Vacation, Inc. to apply for the ID card. Once you have met all of IATAN’s requirements, we will process your application with IATAN to get your card. Other travel benefits are available for making regular bookings on select companies prior to receiving your IATAN card. Continued regular bookings are required for continued travel agent benefits.

Can I sell cruises and vacation packages on a part time basis?

As an independent contractor you set your own hours and goals. With technology like email, voice mail, and cell phones many of your clients will feel comfortable with your “virtual office”.

What cruise and vacation package products are available for sale?

We have a preferred relationship with the following cruise and vacation companies who provide cruises and vacation packages around the world.

Cruise Lines: American West Steamboat Co., Carnival Cruise Lines, Celebrity Cruises, Costa Cruise Lines, Crystal Cruises, Cunard Line, Disney Cruise Line, First European Cruises, Holland America Line, Norwegian Cruise Line, Oceania Cruises, Orient Lines, Princess Cruises, Princess Cruise Tours, Radisson Seven Seas Cruises, Royal Caribbean International, Seabourn Line, Silversea Cruises, Viking River Cruises, and Windstar Cruises.

Vacation Companies: African Travel, American Airlines Vacations, Air New Zealand, American Orient Express, Beaches Resorts, Blue Sky tours, Brendan Worldwide Vacations, Brennan Vacations, Brian Moore International Tours, British Heritage Tours Ltd., CIE Tours, City Escape Holidays, Classic Custom Vacations, Club Med, Collette Vacations, Contiki Holidays, Cosmos, Delta Vacations, DER Travel Services, ETM Travel Group, Europe Express, Future Vacations, General Tours, Globus, Golf Destinations, Grand Bahama Vacations, Holland America Tours, Insight Vacations, IsramWorld, Maupintour, Mayflower Tours, Newman’s South Pacific Vacations, Park East, Princess Tours, Rail Europe, Rocky Mountaineer Railtours, Sandals Resorts, Sports Empire, Super Clubs, TBI Tours, Tradesco Tours, Trafalgar Tours, Universal Orlando Vacations, Walt Disney Travel Company.

While all of the above and more are available to sell, we focus our sales efforts on a smaller group of preferred suppliers who provide personal customer service, higher commissions and promotional support.

What is my sales commission?

The commission is 40% of the adjusted gross commissions. You will be assigned a Contact Agent for advice and review. An option for a higher commission exists by meeting the following minimum requirements: Have cumulative adjusted gross commissions of $50,000 (no time limit.) Pass a test related to group and individual bookings, sales, customer development and promotions to assure that you understand and practice the fundamental concepts before you proceed without the Contact Agent’s advice and review. Maintain a minimum yearly commission income as required by IATAN. Request the higher commission level in writing to Manager of McGehee Cruise & Vacation, Inc. Movement to the higher level must be approved by the Manager and your Contact Agent.

Who do I call for advice and for a review of my work?

You will be assigned to a Contact Agent. Your Contact Agent will provide advice and recommend booking options based on a mutually agreeable contact method and time schedule. Also, your Contact Agent reviews all paperwork, check requests, confirmation faxes, and documents, but does not make the bookings or do research. Contact Agents are not always immediately available, because they are working agents carrying personal client loads and travel frequently. This is especially good for Home Based Agents, because they are dealing with an active agent who has years of experience in dealing with similar situations which are experienced by the Home Based Agent.

What computer booking program is available?

A computer is required with internet access and to be able to view and book cruise inventory and process invoices through the WinCruise system. To access the WinCruise system from your home computer or laptop, Microsoft / WinCruise currently charges $120 one time license fee for a secure connection to their servers and $15 per month (depends on your booking volume).

Training courses are available. If interested, ask for details and ask if you qualify. The primary qualification is based on the number of bookings you project in the near future. A computer booking program is not required since most suppliers have internet booking systems and 800 phone numbers.

Other Expenses:

These expenses should be discussed with your tax advisor to get a good estimate of cost and to determine which are deductible. You will need business equipment (computer with a current operating system, software, printer, fax machine), office supplies (letterhead, envelopes, business cards, files, paper, etc.), office furniture (desk, chair, file cabinet.) Also, you may need two phone lines (one for talking with clients and one for PC Fax, or fax machine, and internet with email.) Voice mail, pager, and cell phone are also good to have. Other expenses include those items that are ordinary and necessary for running a home or office based business. You may already have some of these items.

Required Training:

An individual class with your Contact Agent on booking and paperwork procedures for preferred cruise and vacation package suppliers. Training is $60. Also, training is available on a cruise ships. Cost is nominal plus port charges and gratuities.

Optional Training:

(Expense to be determined by provider) Local seminars during breakfast, lunch, or dinner are provided by cruise and vacation package suppliers which are usually free.

The best way to get started is to make a list of a few possible groups or organizations that might like to go on a group cruise. Then, make a list of potential prospects, individuals and couples, who take cruises and vacation packages anywhere in the world. Both lists will quickly give you an idea if you will have a base of customers to build on.