PanAmerican Teak Land Development This subset company deals strictly with the development of emerging market reforestation developments. We began operating in the spring of 2004 after strong requests for ownership of Panamanian exotic hardwood plantations. PanAmerican currently controls over 3,000 hectares (2.49 acres per hectare) of prime aged exotic hardwood forests that it resells upon request to foreign investors. Our company currently offers two styles of investments under the guidance of PanAmerican Teak Land Development: Option One: The investor has the option to purchase an existing hectare of hardwood plantations. This hectare includes approximately 600 to 700 trees between the ages of 2 and 15 years of age. The prices vary depending on the age of the teak per hectare. This alternative allows an investor to maintain both title to the land and title to the trees upon it, and is packaged with an 18 year maintenance contract that is available through our company upon request. Option Two: To complement the 3,000 hectares already controlled by PanAmerican, we also sell individual hardwoods as an investment. Under this alternative the investor has the opportunity to purchase individual trees. This process involves reserving the title of the land in the name of our company and the title of the purchased tree in the name of said investor. The trees involved in this development are taken from our tree nursery and planted as saplings on freshly cultivated "Chiriqui" black soil. We open these orders to any investors willing to purchase a minimum of 100 trees. The per tree price in this second option includes an 18 year optional maintenance contract. At the end of this period the investor may choose to sell the trees on his own or use our company to aid in the selling process. In addition, throughout the life of these trees each investor is gaining profits from the periodic thinning process that must take place every 5-6 years. All of our reforestation projects are ANAM - "Autoridad Nacional del Medio Ambiente," or National Authority of the Environment - and qualify for Panama's Law 24 investment protections, which state that any investor who invests $40,000 US dollars or more in a qualified reforestation project will be granted an investor's residency and after three years will be granted Panamanian citizenship. Also included as a guaranteed protection under this law, all income produced from this project is tax free. PanAmerican Teak Land Development offers to its investors an optional maintenance contract with the purchase of option 1 and a built in maintenance contract with the purchase of option 2 investments. Each maintenance contract consists of bi-monthly checking of the grounds for grooming. Grooming includes the elimination of knots or spraying of fertilizers that may be necessary and the removal of any shrubs or undergrowth that may cause harm to your trees. The thinning process is also included in the maintenance contract. This process involves the removal of inferior trees to allow for the improved growth of superior trees (this is a necessary process for reforestation). The selling of thinned trees as well as the final harvest are not included in the maintenance contract. The cost of the final harvest is left up the the individual investor to ensure that the choice made as to the selling price, and disposal of the trees is as best fits each individual investor. As an option, however, the investor may choose to use PanAmerican Import/Export, LLC as its selling agent for a minimal additional commission. The benefits of investing in a Tropical Reforestation Project are incalculable. First and foremost, the benefit of ownership of a beautiful Central American piece of real estate in one of the most gorgeous and sought after countries in the world is enough in and of itself, but it does not stop there. The added benefit of owning an income producing property that will appreciate over time and has the potential of posting returns of over 2000% is also a result of this investment. As stipulated by the ITTO, or International Tropical Timber Organization, a tropical hardwood hectare bought today for $25,000 US dollars will be worth well over $500,000 US dollars upon maturity. This is of course in addition to the income that will be made from the trees thinned during the mandatory periodic thinning processes that will be performed. The most important benefit, however, is the benefit of a second residency as delineated above under the protections for foreign investors extended by Panama's Law 24. These Teak Land Development investments can also be used inconjunction with other investments such as IRA's, for a more detailed package of information regarding this type of opportunity please contact us directly.