Introduction

PROPERTY INFORMATION

Name of Seller: Belize Holdings, LLC

NOTE: In this Property Information section, the words "you" and "your" refer to the buyer. The words "we", "us" and "our" refer to the Seller.

Welcome!  Thank you for your interest in purchasing a lot on the island of Long Caye at Lighthouse Reef. The island, and the lots located on it, are a unique environment, with many special topographical and ecological properties and characteristics. Although we may not be required to provide you the information in this packet, we have chosen to do so in order to make your purchase a more informed one, and to disclose all the unique amenities and features of the island to you. Of course, we are welcome to visit the island in person.

You should be aware that as the Seller is not the developer, the information and disclosures in this Property Information section are merely a summary of information that we feel would be important to purchasers.

General Information

The lots are located on the island of Long Caye at the Lighthouse Reef Atoll (hereinafter, “Long Caye”), which is located in Belize, Central America. It is believed the maximum number of lots that will use the recreational facilities, located on Long Caye in common with other owners of lots on Long Caye (the "Lot Owners") is nine hundred ninety-six (996), subject to increase or decrease at any time and from time to time, depending on a variety of factors including, but not limited to, revised development plans, market conditions and governmental controls. Pleasure Island Limited is the primary developer of Long Caye. In addition, Pleasure Island Limited is the Declarant under the Eco-Guidelines and is responsible for implementing the overall development of Long Caye.  (Capitalized terms contained herein shall have the meanings ascribed to them in the Eco-Guidelines unless the context suggests otherwise.)

The Developer is responsible for the construction of the infrastructure and other developmental features of the island. Additional phases and lots are planned for this development. The developer may adjust phasing and add additional property to the subdivision at its discretion, out of the seller’s control. The developer and owner of Long Caye is Pleasure Island Limited, c/o International Services, Inc., Santiago Gomez, 62 Gabourel Street, Belize City, Belize, C.A.

All money figures are provided in U.S. Dollars. Amounts provided are subject to vary slightly based on economic conditions which may affect the exchange rates between Belize and the United States.

Title to the Property and Land Use

A person with legal title to property generally has the right to own, use, and enjoy the property.  You will not have legal title until you receive a valid deed (see disclosures below regarding Belize).  We will also provide you with information about any land use restrictions and encumbrances, mortgages, or liens and some important facts about payments, recording, and title insurance.  Note that your contract for sale/parcel purchase agreement may contain further details which you should review or have a professional review before signing.

Method of Sale

Sales Contract and Delivery of Deed - In connection with the purchase of a lot, you will be asked to sign a sales contract (“Parcel Purchase Agreement”).  If you wish to finance a portion of the purchase price, we may assist you by lending you money and securing your loan with a mortgage against the property.  In general, a total deposit of ten percent (10%) of the purchase price will be required at the time of signing the sales contract.  If your lot is fully paid at the time of closing, the deed to the property (the Belize registered “Land Certificate”) will be delivered to you after closing.

The closing of the purchase of the lot usually takes place within 150 days after the date on which the purchase agreement is fully signed by both parties and you have received all closing documents, and in any event, a deed will be delivered to you within 180 days after the date when the purchase agreement is signed by you, or when applicable by the laws of Belize, which may require your full satisfaction of any mortgage on your lot before a registered Land Certificate (the Belize equivalent of a deed) is delivered to you. A registered Land Certificate will, however, be recorded in your name, and held on file with the Government of Belize for notice purposes until such time as your mortgage is satisfied.

Regardless of the laws of Belize, the Seller will issue to you, within 180 days after the purchase agreement is signed, documentary evidence that a purchase has taken place, regardless of any outstanding mortgages on your lot.  The Seller will registered these transfer documents in Belize and you will be afforded all protections that such documents provide after being registered under Belize law.  Upon full payment by purchasers, a registered Land Certificate will be delivered to the Seller from the Government of Belize, which will thereafter be forwarded to the purchaser.

Type of Deed - The transfer of legal title to all lots will be by a Belize Transfer of Land, free and clear of all monetary liens and encumbrances except for real property taxes not yet due and payable.

Encumbrances, Mortgages, and Liens

The lots in Long Caye described in this Property Information section are not subject to a blanket lien or mortgage.

Title Insurance

In the event you wish to obtain an attorney’s opinion of title or a title insurance policy, we recommend that an appropriate professional interpret the opinion or policy.

Payments

Escrow - Your earnest money deposits will be held in escrow pending the closing by the law firm of Jason Weaver, Attorney at Law, 3531 Griffin Road, Fort Lauderdale, Florida 33312. The escrow agent is an independent third party authorized to disburse to you all money you have paid prior to closing in the event of our failure to convey title or default of any other obligation.

Prepayment - If we finance the purchase of your lot, there will be no prepayment penalty, if and when you decide to prepay your note.  If, on the other hand, an independent financial institution finances the purchase of your lot, you will need to review the financing documents to determine whether there is any prepayment penalty.

Default - In the event you default in the performance of any obligation or covenant under the sales contract prior to closing or which prevents closing from taking place, as provided, we may elect to terminate the contract and retain your non-refundable security deposit, including accrued interest, if any, or seek any and all remedies available at law or in equity.  You should review your sales contract for a full explanation of the remedies available to both parties in the event of default.

The Use of Your Lot

Covenants - A declaration of covenants for Long Caye (the “Eco-Guidelines”) has been or will be recorded against the land in the subdivision in the public records of Belize. The Eco-Guidelines contain provisions, which will require lot purchasers to secure permissions, approvals or take other action prior to constructing upon, using and disposing of a lot. This discussion pertains to the Eco-Guidelines in effect as of 12/31/04.  The Eco-Guidelines provided by the Seller may be updated, amended, or differ.  This discussion is not legal advice and is not a warranty of the meaning or interpretation of any provisions of your Eco-Guidelines.

The Eco-Guidelines provide for architectural control of all properties within the subdivision. A committee formed by the applicable property owners association will oversee architectural and environmental control within the subdivision.  The Environmental Review Board (the “ERB”) will have exclusive jurisdiction over all original construction within the subdivision as well as assuring that such construction complies with and abides by the Environmental Compliance Plan.  The ERB will have the authority to adopt design guidelines for the subdivision, as well as application and review procedures; provided that such procedures are consistent with the initial design guidelines for the subdivision, which has been implemented. The property owners association, if any, may form a Modifications Committee (“MC”) to have jurisdiction over modifications, additions, and alterations made to existing structures within such subdivision. The MC may implement its own guidelines and procedures, provided they are consistent with the design guidelines of the ERB.

The Eco-Guidelines also set out a number of covenants on use of property within the subdivision and also authorize the Board of Directors of the property owners association to make and enforce rules and regulations in addition to those contained in the Eco-Guidelines. The Eco-Guidelines also contain covenants regulating general restrictions against offensive activities and unsightly or unkempt conditions or the pursuit of hobbies which may lead to disorderly, unsightly, or unkempt conditions; prohibits the discharge of firearms; storage of combustible liquids, or the display of any sign unless approved by the ERB. Prohibitions against construction of any exterior structures (except with permission from the ERB or MC), obstruction, rechanneling or other interference with drainage flows and the subdivision of any lot are set forth in the Eco-Guidelines. In addition, the Eco-Guidelines require lot owners to notify the property owners association in the event that a lot is sold or title to the lot is otherwise transferred. A complete copy of the recorded Eco-Guidelines, as they may be amended or supplemented at any time and from time to time are available upon request.

Easements - In the Eco-Guidelines there are easements, which may affect your plans for building or using your lot, including, for example, drainage easements. In an effort to preserve the natural habitat of Long Caye, and in order to accommodate residents’ coexistence with the untouched habitat of the island, all lots may have easements on them which allow excess rainfall or water to flow properly and smoothly, throughout the island. Construction of your residence or any other structure on your lot must be done in such a way so as to allow for natural drainage.  Household drainage pipes will not be permitted to empty directly into any wetland area, or any other water body or resource on Long Caye and the surrounding environs.  These pipes will lead to appropriately designed leach fields in accordance with designs approved by the ERB.

Plats, Zoning, Surveying, Permits, and Environment

Plats - The regulatory authorities have approved the subdivision plans and plats of specific lots. The plats covering the lots in this Property Information section have been recorded with the Ministry of Natural Resources and the Environment.  The description of the lots given in the Belize Transfer of Land is legally adequate for the conveyance of land in Belize.

Zoning - The lots described in this Property Information section may be used for single-family homes or commercial purposes as designated in the Master Development Plan, and such uses conform to the local zoning and the Eco-Guidelines.

Surveying - Your lot has been marked for identification on the Master Development Plan from the Developer. If you require a separate survey of your lot, you may make the appropriate arrangements to do so.

Permits - In order to begin construction on your lot, you must first submit an application along with plans and specifications and a review fee of Two Hundred Dollars (US $200) to the Environmental Review Board “ERB” located at 62 Gabourel Street, Belize City, Belize, C.A. 011-501-223-3228. Once your completed application and review fee have been received by the ERB, the ERB will review your application in accordance with and subject to the Eco-Guidelines and any other rules promulgated by the ERB. Details of the review procedure and required building standards are found in the Design Guidelines published by the ERB.  After receiving an approval from the ERB, you will also be required to obtain a building permit from the Belize Building Department, which is located at 109 North Front Street, Belize City, Belize, C.A. Phone: 011-501-227-2308. The Developer is obligated to obtained permission for the construction of boardwalks, which have been or will be strategically located on Long Caye, and which shall elevate the walkways and pathways on Long Caye to ensure and preserve environmentally sensitive areas.  The Developer has also obtained permits for the Piers, which serve as the temporary point of disembarkation for all boats carrying passengers visiting or occupying a residence or business on Long Caye.  Plans and specifications for the construction of docks are subject to review and approval by the Government of Belize, Department of the Environment, the ERB and the Eco-Guidelines. Some parcels on Long Caye have been approved for commercial uses; however, you must obtain the appropriate licenses and permits from the appropriate Belize governmental entities before operating such a business within the subdivision.

Environment - An environmental impact assessment was prepared for the development of Long Caye, which was carefully considered by the National Environmental Appraisal Committee (“NEAC”) before promulgating the Environmental Compliance Plan for Long Caye.  The Environmental Compliance Plan discusses various potential sources of environmental impact during the development of the Project, including, for example, contamination of soil and water resources, habitat alteration from clearance of land, accelerated erosion with subsequent siltation of water resources due to construction of the required infrastructure, alteration of wildlife in the area, alteration of possible scenic areas, changes in population dynamics arising from the development and potential impact to fringing and patch coral.  In order to mitigate the potential sources of environmental impact during development, the NEAC promulgated the Environmental Compliance Plan, which, amongst other mitigating measures, forbids any vehicles other than golf carts, as permitted according to the Eco-Guidelines, to be used for transportation on Long Caye.  For more information, you may contact the NEAC for its recommendations, which have been incorporated into the Eco-Guidelines.  NEAC may be contacted through the Department of the Environment, Government of Belize, Belmopan, Belize.

Roads

Access to the Subdivision

Long Caye is an island unbridged to the mainland.  As such, direct access to the subdivision may be provided by boat, sea plane or helicopter, not automobile. The Developer has, at no cost to you, completed construction of two piers on and extending from the northeast and northwest side of the subdivision.

Access within the Subdivision

Long Caye is being developed on environmentally sensitive land and in order to have a minimal impact on the environment, the Department of the Environment (the “DOE”) has promulgated the Environmental Compliance Plan, which requires that legal and physical access within the subdivision be provided by way of 10-foot wide access walkways (pathways or trails), in lieu of paved roadways.  No conventional automobiles will be permitted on Long Caye; however, if you own or occupy a lot permitted for residential use, you will be permitted to use an electric or solar-powered golf cart or if you own or occupy a lot permitted for commercial use, you will be permitted to use a electric, solar or gas-powered golf cart for transportation on and throughout Long Caye. The Developer is in the process of constructing elevated boardwalks. To the best of our knowledge some, but not all, boardwalks have been completed. The interior walkways or boardwalks within the subdivision are or will be owned and maintained by The Island of Long Caye Community Association Limited (also referred to as “property owners association”). The Developer is responsible for the construction of the walkways, boardwalks and pathways, if any, at no cost to you. As a lot owner, part of your annual maintenance fee goes to contribute to the maintenance of the interior walkways, boardwalks and/or pathways presently and after such time as the same are conveyed to the property owners association. Upon conveyance of such walkways, boardwalks and pathways to the property owners association on Long Caye, the Association shall assume all future responsibility for maintenance of such walkways and pathways so as to provide access on a year-around basis.

Utilities

Water

As on many islands in the Caribbean, water is supplied to the lots within the subdivision by an individual water supply and collection system serving each lot for which no permit is necessary.  When building, you are required to construct and each lot must contain cisterns, bladders or a water catchment and holding system, which shall store rainwater collected.  Water to fill such cisterns or similar storage tanks may be secured to the dwelling.  In addition, a reverse osmosis water treatment system may be used for production of potable water.  The ERB must approve the reverse osmosis water treatment system used for the production of potable water, and the ERB may restrict any lot owner the usage of such system based on the size of the lot, the location of the lot, the surrounding owner’s usages of such systems and/or the impact on the environment.  If an alternate water source becomes necessary, the Developer will submit a proposal for it to the Department of the Environment at such time, if ever. Your cisterns, bladders and/or water catchment and holding systems should be periodically emptied and replenished with fresh water as water stored for extended periods of time tends to become stale and may acquire an unpleasant taste or odor. The purity and chemical content of the water cannot be determined until each individual source of water is completed and tested.

Sewer

The Island utilizes composting toilets, as opposed to septic tanks or traditional sewer systems. The Department of the Environment has approved use of composting toilets for sewage disposal in the subdivision. No permits are required for the construction or installation of such composting toilets except as provided in the Eco-Guidelines. No other means of sewage disposal systems will be permitted on Long Caye unless approved by the Department of the Environment and ERB. The Buyer should take appropriate measures to ensure that a particular composing toilet can be installed. Grey water holding tanks shall be used in conjunction with drip irrigation systems for the fertilization of local planting. Food waste must be disposed of in composting bins. Each owner or occupant of a lot must participate in the recycling and reclamation program established for the subdivision.  As such, you are required to obtain and maintain a composting bin for food waste, paper products and any other compostable materials, along with recycling bins for crushed metal, cans, glass and plastic bottles and/or containers on your lot. Lot owners must take recyclable materials to designated waste recycling and collection sites, which will be clearly identified and marked throughout each of the neighborhoods on Long Caye.

The fact that you are not required to obtain a permit for the construction or installation of a sewage disposal system will not have a material adverse effect upon the availability of construction or permanent financing should you decide to finance your lot with us. Septic tanks, cesspools and sewers are prohibited in the subdivision.

Electricity

The Island uses alternative energy sources in order to preserve the natural environment and habitat. Environmentally friendly technology such as solar power shall be the primary sources of energy on Long Caye. Each lot owner is responsible for their own costs and construction of the means of power on their lot. This allows each lot owner to customize, within the boundaries of the acceptable means of power generation, their own level and extent of energy and power. Low decibel generators may be used for emergency backup power. The purchase and charges for street lighting, if any, in the future, in the Long Caye subdivision will be billed to the property owner’s association and will be paid by lot owners as a portion of the Association’s assessment.

Telephone

Satellite phone service or voice over Internet may be obtained from a sa