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Chicago, IL. 60647 U.S.A.

Albuerne Architects presents the scope of design services providing a comprehensive schedule and descriptions of project phases and services for a residential and recreational Chiriquí Master Plan located on the province of Chiriquí, on the Panama Republic, Central America, according to the Panama Real Estate Investment Opportunity (Economic analysis and feasibility). The property is approximately 723 hectares. There is approximately 2 Km. of ocean frontage and 1 Km. of river frontage. The property as it stands will support the following business opportunities: Breakdown of Land Use Hectares Frontage 17 Marina and Condominiums 43 Equestrian 87 Golf Course & Country Club 43 International Airport 50 Condominiums ($400K) an nature area With equestrian acces 84 Shops, service, gas grocery 5 Pods of homes ($800K&+) 100 Low rise concominiums and natural Areas near airport 87 Home pods ($800K) an condominiums ($400K) 80 East End five star Hotel and Casino With 2 Km. of ocean frontage en 1 Km of river frontage 17 Infrastructure Use (15% of total) 110

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Total Hectares Used 723

Chiriqui background for Master Plan Development, Chiriqui, Panama Central America.

Description of the land to be developed:

The property is 723 hectares bordered by water on three sides. There is approximately 9 kilometers of clear white sand ocean front beach that overlooks a series of islands. The river front on the Southwest side of the property contains approximately 3 kilometers of white sand riverfront beach with brackish water. The river front on the Northeast side of the property contains approximately 15 kilometers of deep water river front. This river is a combination of three smaller rivers that merge before it reaches the property. This river is used by ocean going yachts during times when Pacific storms are present as a place of safe harbor. This river front is ideal for creating a deep fresh brackish water marina with both ocean and river access. The portion of the property closest to the Inter-American Highway is clear, flat and ideal for the development of an international airport, as a matter of fact it has been used as an airstrip by the United States Military during World War II and again in 1989 during the invasion of Panama. This property has direct access off of the Inter-American Highway.

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Regional Plan

Pacific Ocean

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Development Strategy

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About Chiriquí

Chiriquí is a province of Panama. The capital is the city of David. The province is divided in 13 districts.

District (Capital)

1. Alanje (Alanje) 2. Barú (Puerto Armuelles) 3. Boquerón (Boquerón) 4. Boquete (Bajo Boquete) 5. Bugaba (La Concepción) 6. David (David) 7. Dolega (Dolega) 8. Gualaca (Gualaca) 9. Remedios (Remedios, Panama) 10. Renacimiento (Río Sereno) 11. San Félix (Las Lajas, Panama) 12. San Lorenzo (Horconcitos) 13. Tolé (Tolé)

The province of Chiriquí is located in the western region of Panama. It is bordered to the north by the provinces Bocas del Toro and Ngobe-Buglé, to the west by Costa Rica, to the east by the province of Veraguas, and to the south by the Pacific Ocean.

It has a size of 6,476.2 km², with a population of 368,790 people occupying 87,509 houses as of the year 2000.

Until the arrival of Spaniards, Chiriquí was populated by a number of indigenous tribes, known collectively as guaymies. These tribes include changuinas, zurias, boquerones, buricas, doraces, bugabas, and gualacas.

Golf of Chiriquí and the Western Highlands:

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Western Panama offers some of Panama’s most spectacular, and diverse, attractions.

On the one hand, there are the verdant highlands, home to the country’s tallest mountain and the picturesque town of Boquete, which now rivals Bocas del Toro as Panama’s hottest destination for foreign tourists and retirees. On the other, there are the remote Pacific islands and beaches of the Golfo de Chiriquí, which is so large and species-rich some consider it a small sea.

The Golfo de Chiriquí extends from Punta Burica at the western edge of Panama toward the Azuero Peninsula to the east, encompassing the entire coast of Chiriquí province and much of the Pacific coast of Veraguas. It’s a region of superlatives. It contains the richest mangrove forests in Central America, the largest island in Panama, and one of the largest coral reefs in the Pacific. It offers truly world-class diving, surfing, and sport fishing.

Conservation organizations have targeted this area as one of the most ecologically important in Central America. It has so far seen relatively little development, but human pressures are mounting. Panama has reacted by establishing protected areas, most notably two huge marine parks: Parque Nacional Marino Golfo de Chiriquí and the newly created Parque Nacional Coiba.

The region also includes Panama’s second-largest city, David, near the coast not far from the Costa Rican border.

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Most visitors simply pass through David on the way to somewhere else, usually the highlands, but it has all the services one would expect of a busy, modern provincial capital. There are a few large beaches within a couple hours’ drive of David, the most popular of which are Playa Barqueta and Playa Las Lajas. Farther east, remote Playa Santa Catalina is internationally famous as one of the best surfing spots in Latin America.

Satellite pictures Panama and Chiriqui province.

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Those who visit the western highlands after a trip to the beaches and islands feel they have entered a different world, a world filled with powerful rivers, gigantic waterfalls, imposing mountains, secluded hot springs, and green forests bursting with life. The highlands are also home to Volcán Barú, a dormant volcano that, at 3,475 meters, is Panama’s biggest and most dramatic mountain.

There’s plenty to keep outdoorsy types busy, including hiking, horseback riding, biking, the country’s best white-water rafting, kayaking, even rock climbing and rappelling. The western highlands are popular with bird-watchers, since the forests attract hundreds of species, including many spectacular ones.

Most of the highland sights are clustered on the west and east sides of Volcán Barú. While the west side of Barú is a bit cooler and more dramatic looking, the east side has both great beauty and something its western neighbor lacks: a charming little town called Boquete.

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Map of Panama with Key Locations

Transportation - Getting to Chiriquí and the property

The quickest way to access the site from Panama City is by a 60-minute commuter or charter flight to the new 3,000-foot runway in the town of David.

Currently, there are regular flights between Panama City and David seven days a week. Flights depart from Albrook Airport and return from David four times a day. Additional flights via charters can be arranged at any time.

The property is approximately 6 hours by car from Panama City. Most of the drive is along the Inter-American Highway, the roads are well constructed and it is a scenic drive.

About Panama

Panama is a part of Central America with beautiful beaches and coastal waters on both the Pacific and Atlantic Oceans. Geography ordains Panama as an ecological, cultural and historical crossroad of the World; a meeting point of old and new, East and West, North and South. The New York Times recently praised Panama for its “embarrassment of wildlife and natural beauty” and New York Magazine called the country “the latest eco-playground with panache”. To the growing number of people choosing to live and vacation in Panama, the country’s relative obscurity is unfathomable in light of its attributes. As the New York Times observed, parts of Panama are “undeniably first-world” and the country is “much more user friendly than other developing nations ” given that

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many people speak English; the United States dollar is the official currency; the drinking water is clean; the government is stable; there are good hotels and crime is low”.

For five centuries, world commerce has passed through Panama due to its strategic, privileged position. Over the years international trade has prospered.

Today, “The Pearl of the Pacific,” as Panama is sometimes called, is also famous for:

• The richness of its tropical flora and fauna

• Its Panama Canal that benefits the world

• A friendly and welcoming people

• Excellent security and safety

• A Cosmopolitan ambience

• A dynamic international banking center

• Growing Eco-tourism

Proximity, Climate and Environment

Panama is close.

As the land bridge between South and Central America, Panama is just a short plane ride away from the US. Six major cities offer direct daily flights to Panama City: Miami, Houston, Dallas, Los Angeles, New York, Newark, and Orlando. The flight from Miami International is only 2 hours.

Panama has no hurricanes or major earthquakes.

Panama is blessed by nature. It is the only country in Central America in a climate zone that is absolutely hurricane-free! Panama also has none of the destructive earthquakes that plague its Central America neighbors. In addition, daytime, sea level temperature is around 80-85 degrees F. (27 degrees C.) most of the year, cooling down to a comfortable setting in the evenings. The “dry season” is between the months of December and May.

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Although there is a higher rainfall during the other months of the year, it is rare day that the sun fails to shine.

Panama is the best place for ecotourism today.

Panama has the most accessible pristine rainforests in the world. A position as a narrow land bridge connecting two continents has endowed it with some of the world’s most bio-diverse rainforest. Its national parks cover over five million acres. A key indicator of its bio-diversity: Panama has 944 recorded bird species, more than the US and Canada combined. Population and Culture Panama’s population tops three million people of diverse origins descendants of Spanish settlers, of black Cimarrones, Indians of the coast and mountains, North Americans, émigré families of European stock, Chinese and East Indians. Recently, there has been a surge of retirees from the US who have made Panama their new home and residence, and the trend is growing as the baby boomer generation seeks summer homes and retirement locales in the beautiful and friendly environments of Panama.

Appendix C – Revenue Projections

Property Allocation Areas Hectares Acres

West End - 5 Star Hotel and Casino with 2km of ocean frontage and 1km of river frontage 20 49.4 Marina and Condominiums 50 123.5 Equestrian 100 247 Golf Course and Club House 50 123.5 International Airport 58 143.26 Condominiums ($400K) and nature area with equestrian access 100 247 Shops, services, gas, grocery 5 12.35 Pods of homes $800k+ 120 296.4 Low rise condominiums and natural areas near the airport 100 247 Home pods ($800k) and Condominiums ($400k) 100 247

East End - 5 Star Hotel and Casino with 2km of ocean frontage and 1km of river frontage 20 49.4

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Total Area 723 1785.81 Initial Purchase Price $72,300,000

Phase II - Preconstruction Prep & Sale

Units to Build Operational

Costs Revenues Estimated Costs to Develop Management and planning $ 2,500,000 Architecture fees $ 450,000 Legal fees $ 350,000 Airport Permit $ 150,000 Airport Engineering $ 120,000 Land development (Roads, etc) $ 5,800,000 Model home development 4 $ 2,500,000 Survey and lot identification $ 500,000 Topographical Study $ 76,800 Environmental Study $ 75,000 Perimeter fencing $ 500,000 Electrical Infrastructure - Finalize $ 900,000 Waste water system $ 2,100,000 Golf course development $ 600,000 Marketing & Advertising $ 700,000 Contingency 48% $ 8,314,464 Total Cost for pre-development $25,636,264 Value of the land with a marketable project plan and public awareness

$ 40.00 $155,113,736

Increase in Land Value $82,813,736

Revenue from Land Lot Sales Home Development Section Number of Lots Available for Sale 170 420 2100 Lot Size (in sq meters) 809

Per Sq Meter Sale Price $ 60

Revenues from Lot Sales $ 101,909,730

Revenue from Condo Site Lot Sales 125 # of Sites Lot Size (in sq meters) 5000 250

Per Sq Meter Sale Price $ 1,500

Number of Condo Lots Available for 20

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Sale

Revenues from Lot Sales $ 150,000,000

Revenue from Golf Course/Land Lot Sale

Lot Size (in sq meters) 500,000

Per Sq Meter Sale Price $ 15

Revenues from Golf Course Land Sale $ 7,500,000

Revenue from Hotel/Resort Land Lot Sale Hotel West Lot Size (in sq meters) 200000

Per Sq Meter Sale Price $ 300

$ 60,000,000

Hotel East Lot Size (in sq meters) 200000

Per Sq Meter Sale Price 500 $ 100,000,000

Revenue from Sale of Airport Prepared and permitted international airport space Hectares 58

Price per Hectare 550000 $ 31,900,000

Revenue from Shops and Service Area Lot Size (in sq mt) 50000

Per Sq Meter Sale Price 500 $ 25,000,000

Revenue from Marina Property Lot Size (in sq mt) 250000

Per Sq Meter Sale Price 500 $ 125,000,000

Total Revenue from Property Sales $

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601,309,730

Profit from Lot Sales $ 503,373,466

Phase III - Home & Condo Building Development

Land available to build in hectares

Equivalent in acres

# of lots @ 1/4 acre

Avg size home per sq ft 2250 Avg size home (in per sq mt) 225 Internal Cost Estimates: Avg cost to build (sq ft) $59 Cost overrun allowance (sq ft) 5% $3 Estimated cost to build (sq ft) $62 External Sales Pricing:

Avg price of lot (sq mt) $ 60 $ 48,540

Avg sales price (sq ft) $ 6 Avg cost/price per home $800,000 Marketing and Sales Cost 10% $80,000

Estimated Home Sales - Net Revenue $ 1,409,730,270

Condo Development Section: Per Unit Sq. Feet Number of Units Available 6,000 2100 Cost to Construct per Unit $130,095 $780,570,000

Marketing and Sales Cost per Unit $ 40,000

Sales Price of Condo Units $ 400,000

$2,400,000,000

Estimated Net Revenues from Condo Development & Sale of Units $1,379,430,000

Golf Course Buildings and facilities, pool & other amenities $3,500,000

Cost per Hole $ 280,000

Numbers of Holes to be developed 9

Total Cost of Golf Course Development $ 2,520,000 $ 6,020,000

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Estimated Revenues from Sale/Lease of Golf Course Development TBD

Total Private Construction Net Revenue $2,783,140,270

Descriptions of designated services:

1. Pre-design Services

Pre-design Phase the owner and Architect, respectively, shall provide those services designated in the Schedule of Designated Services necessary for the Architect to assist the Owner in establishing the Owner’s program and the financial and time requirements and limitations for the project prior to beginning design.

1.1 Review and checking of documents prepared for the project. 1.2 Government Panama authorities (agencies) consultation. 1.3 Research of critical applicable regulation. 1.4 Research of community attitudes. The services apply to applicable laws, statutes, regulations and codes of regulating entities and to review required of user or community groups with limited or no statutory authority but significant influence on approving agencies and individuals, including: Local political subdivisions Planning boards County agencies Regional agencies Federal agencies

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User organizations Community organizations Environmental interest groups

2. Master Plan Schematic Design Service.

2.1 Master Plan Schematic Design geometrical proposal. 2.2 Reviewing documents provided by the owner. 2.3 Land registry Analysis from Chiriqui province. 2.4 Analysis laws, statutes, regulations and codes for Regional Master Plan of Chiriqui province, De Santos province. 2.5 Manufacture Plan with the anterior information. 2.6 Manufacture up to three geometrical proposals in accord to land topography, parametric feasibility services, land suburban characteristics and owner’s expectancy. 2.7 Schematic Design for out side areas, entrance, fence, control entrance security, decorative pavers, sidewalks, common areas, monolith Sign with logo development, urban furniture. 2.8 Final Schematic Master Plan Design. 2.9 Six 3D Images CAD, two aerial, two from different areas and two from Main entrance.

3. Feasibility and regulations and codes of regulating entities

3.1 Feasibility water and sewer and waste drainage services. 3.2 Feasibility electrical services. 3.3 Plan for approval for Chiriqui Master Plan and Panama authorities.

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3.4 Plan for approval ecologic for Chiriqui Master Plan and Panama authorities. 3.5 Plan approval for urban viability for Chiriqui Master Plan and Panama authorities. 3.6 Master Plan development located in Chiriqui Master Plan and Panama. 3.7 Topography plan. 3.8 Geo-reference plan to Land registry of Plan Chiriqui and Panama. 3.9 Slope Plan. 3.10 File Integration and presentation for Chiriqui and Panama authorities.

4. Urbanistic Design.

4.1 Fluvial drainage Plan for approval for Chiriqui Master Plan, Panama authorities. 4.2 Plan for approval in ecologic Chiriqui Master Plan, Panama authorities. 4.3 Plan for approval for urban viality for Chiriqui Master Plan, Panama authorities. 4.4 Topography plan. 4.5 Fluvial drainage in accordance to hydrologic studies. 4.6 Official Landscape plan. 4.7 Urban Design Plan and land slope. 4.8 Official plan for tramit of Urbanistic Design for Chiriqui and Panama authorities. 4.9 File Integration and presentation for Chiriqui and Panama authorities.

5. Slope sections.

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5.1 Plan for approval in ecologic Chiriqui Master Plan and Panama authorities. 5.2 Design slope sections 5.3 Official Plan slope sections. 5.4 Streets and Section streets. 5.5 File Integration and presentation for Chiriqui, Panama authorities.

6. Master Plan Construction Documents Services.

6.1 Master Plan for approval for for Chiriqui Master Plan and Panama authorities. 6.2 Master Plan for approval ecologic for Chiriqui Master Plan and Panama authorities. 6.3 Master Plan for approval for urban viality for Chiriqui Master Plan and Panama authorities. 6.4 Plan for approval uniform sign plan, ground signs, site, parcel, subdivision, address numbers, for Chiriqui Master Plan and Panama authorities. 6.5 Support technical plan for Land registry, Chiriqui and Panama authorities. 6.6 Water and sewer and waste drainage services design/documentation, final engineering calculations, drawings and specifications based on approved design development documents setting forth in detail the construction requirements for the project for Chiriqui and Panama authorities.

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6.7 Electrical, Design/documentation final electrical engineering calculations, drawings and specifications based on approved design development documents for Chiriqui and Panama authorities. 6.8 Digital Fiber Optic Network Services Design (TV cable, telephone and data services) /documentation final electrical engineering calculations, drawings and specifications based on approved design development documents for Chiriqui and Panama authorities. 6.9 Public lighting subdivision design/documentation final engineering calculations, drawings and specifications based on approved design development documents for Chiriqui and Panama authorities. 6.10 Documentation for uniform sign plan, ground signs, site, parcel, subdivision, address numbers, for Chiriqui Master Plan and Panama authorities. 6.11 Fluvial Plan design/documentation final engineering calculations, drawings and specifications based on approved design development documents for Chiriqui and Panama authorities. 6.12 Pavers and sidewalks design/documentation final engineering calculations, drawings and specifications based on approved design development documents for Chiriqui and Panama authorities. 6.13 Final Master plan construction document. 6.14 File Integration and presentation for Chiriqui, Panama authorities. 6.15 Files construction documents for Land registry subdivision for Chiriqui Master Plan and Panama authorities. 6.16 Structural Design/documentation, final engineering calculations, drawings and specifications based on approved design development documents setting forth in detail the construction requirements for the project for Chiriqui and Panama authorities. 6.17 Design/documentation for outside areas, landscape, entrance, fence, control entrance security, decorative pavers, sidewalks, common areas, monolith Sign with logo development, urban furniture, final engineering

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calculations, drawings and specifications based on approved design development documents setting forth in detail the construction requirements for the project for Chiriqui and Panama authorities.

7.- Files for Numbers for land registry and lot subdivision.

7.1 Official numbers plans. 7.2 File Integration and presentation for Chiriqui, Panama authorities.

8. - Constructions Plans.

8.1 Street layout. 8.2 Block layout. 8.3 Lots layout.

9.-Documentation provide for the owner.

9.1 Mechanical laboratory for ground analysis in site 9.2 Topography in site. 9.3 Legal Files 9.4 Geological studies in site 9.5 Environment impact study in site 9.6 Viability impact study in site 9.7 Hydrological study in site

Important Notes Prices are without tax, the tax is 15 % (Impuesto al valor agregado).

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Trips to site or others expenses will be covered by the owner On approval of the budget we will require a 30% down payment, and the remainder as the design advances. We will include an original drawings set on each phase of the project and one complete set at the end. We will include files in DVD format on every phase of development. The plan files will be in Autocad version 2008. We will include plan files in PDF format. Engineering calculations & memories in Excel format. Specifications documents in Word format. For the 3D Images the files will be in TIFF and JPEG formats. Jorge Albuerne E Albuerne Architects Director Phone. +52 81 8114 91 02 Mobile If dialed from the USA +52 1 81 86 65 36 13 Mobile if dialed from inside Mexico 045 81 86 65 36 13