Page 41 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

T&E provided conceptual drawings for the project as well as a detailed
proposal.

C. Operating and Maintenance

An O&M contract will define the parameters for the operation and the
maintenance of the facility such as preventive and corrective maintenance,
performance monitoring and reporting. The scope will be outlined as follows:

Schedule/ Preventive Maintenance

The main objective is any system’s fault prevention and the optimum
operation of the systems.

Unscheduled Maintenance

Outline the procedures and a quick response to operating failures.

D. Permits and EIA

Ceregral already has the EIA approved by the SEAM (Secretaria del Medio
Ambiente). That permit needs to be adjusted or modified. In addition,
Ceregral has the necessary permit from the City of Villeta to operate a
terminal facility.

To operate the cold meat storage a permit must be obtained from SENACSA
(Servicio Nacional de Calidad y Salud Nacional) where a standard procedure
must be followed.

E. Application for the Benefits of the Law 60/ 90

The application for the benefit of this law will be made at the Ministry of
Industry and Commerce. The Law 60/ 90 provides important benefit to any
investment over US$5 million. Hiperlogistical Services S.A. has the approval
from the Ministry of Industry and Commerce, as well as the necessary
expertise to prepare and follow through with the application.

F. Power Purchase Agreement

The local company will formalize an agreement with ANDE (Administracion
Nacional de la Electricidad) for the provision of the required energy to be
used at the facility.

13. Laws Pertaining to the Project

The following is a summary of the laws related to this project. Additional laws
that could also be applicable are being analyzed by the lawyers:

A. Investment Incentives Law No. 60/ 90

The purpose of this law is to attract capital investments which must
be a minimum of US$ 5 million. The objectives are the following:

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