Hollund's acquisition of the 80% of the shares

Hollund ' s acquisition of the 80% of the sha r es of BWD (Bayano Wood Development) for the aggregate a mo unt of $180 , 000 USD gave Hollund certain rights.

The General Congress Kuna of Madugandi Reserve , in a special session with the participation of the 14 communities that mak e up the Kuna of Madugandi on December 5, 2012 resolved to approve the projects of social interest and social development by breeding and commercializing of tilapi a fish in Lake Bayano (the "Tilapia Business"), as well as the extraction of underwater timber or " snags " from Lake Bayano in the area ofParti, Nac ru z Gandi y Tabardi. This means Hollund will be involved in enriching the tilapia fishing in Lake Bayano.

The General Congress also granted B & B Madera S.A. the rights to th e harvesting, extraction and processing of trees (snags) from Lake Bayano in the area of Parti, Nacruz Gandi y Tabardi. This means B&B Madera S.A. will actually be doing the milling for Hollund Industrial Marine.

However, and this is important, B&B, pursuant to rights they claim to have under 2.2 of this LOI , is granting BWD th e exclusive right to harvest, extract and process underwater timber or "snags" from L ak e Bayano in the Concession described as area of Parti, Nacruz Gandi y Tabardi. This clause indicates that Hollund will still maintain the right (at their own discretion) for the cleaning , harvesting, extraction and processing of trees. So Hollund can do their own milling should that opportunity arise. So it appears B&B Madera will help with the start-up of timber processing, but Hollund intends to take this function over (otherwise, why would this clause be included).

H o llund will m a ke e very effort to invest within 120 days ap p roxima te l y $ 1 1 3 .0 00 for th e bui l d ing of t h e ramp and purchase of lake side equipm e nt and in fr astru c tur e a nd th e ne c essary w o rking c apital to begin the extraction o f wood as soon as p o s s ibl e. I feel I cannot emphasize the important of this clause enough. This clause suggests that Hollund will obtain additional financing, and they will begin harvesting and processing timber immediately. I suggest that Hollund will need additional money to accomplish these goals, and I further suggest that this financing is already agreed upon. That means someone is guaranteeing the bank that revenue will be generated, and soon. Could this be North Cal or B&B Madera?

Pe dro Barquet do e s her e by agree to manage the day to da y o pe rat ion s o f t he

project (personnel , e x tracti o n, logistics , etc.) by spending at l eas t t w o we e k s a

month a t the lake. Th e oth e r tw o weeks he w ill lea ve p e ople h e tru s ts in ch arge of

th e op e r a tions. H ollund w i ll cov e r th e exp e ns e s M r. B arqu e t may ha v e fo r th ose

t wo weeks. This a m ount is to be establish e d in th e De fi n i tiv e A gr ee ment.

H ollund a nd Mr. Barquet will work tog e th er a t the tim e th e wo o d i s r ea dy to be

so ld t o a chie v e th e b e st price scen a ri o ( wh e the r l a k e s id e sa le or m illi ng) for

H ollund.

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