Questions & Answers

FINANCING / OPTIONAL RENTAL PROGRAM / THE TEAM / TIMELINE & PERMITS / OTHER QUESTIONS

FINANCING

How do I Purchase a Unit?

• $10,000 refundable reservation deposit is submitted with your signed Reservation Agreement required to HOLD your unit.
• We then deliver a complete Ownerʼs Package to your address, which includes the sales contracts, master plan, all renderings, floor plans, specifications, finishes and amenities.
• You then have fifteen (15) days to review the sales contact before making a final decision to sign and send back the executed Sales Contract.
• 5% down payment is required within 7 days from receipt of your executed sales Contract (not including the $10,000 reservation deposit)
• 5% down payment is required at the start of site work
• 5% down payment is required at the full completion of pilings
• 15% at the full completion of the concrete shell (20 weeks later) to total 30% down toward the purchase price (not including the $10,000 reservation deposit)
• There will be bank financing available for the 70% balance of the Unit purchase price. Please keep in mind that this financing will only be available upon lender approval and not guaranteed by the project owner. Sands Point may also offer private “hard money” financing, through a third party lender, if the respective applicant does not qualify for traditional bank financing.

The lucky owners at Sands Point will have the ability to purchase their respective unit one of two ways

1. Corporation Purchase Contract: The Developer will create, through its lawyers, a Costa Rican corporation named a “Sociedad de Responsabilidad Limitada”, also referred to as “S.R.L.”,“Limitada” or “Ltda” for the purchase of the unit and the purchaser will buy the corporation. This is the most common form of real estate ownership in Costa Rica. In addition to owner anonymity (no Board of Directors necessary) and asset protection (shares cannot be transferred to non-shareholders without the previous expressed consent of the other shareholders), corporate ownership often allows more flexibility in estate and tax planning. Buying a corporation also reduces closing costs, land transfer taxes, and if structured properly, it may reduce or eliminate probate fees. The net legal fee to each unit owner will be $500 per S.R.L.

2. Unit Purchase Contract: In the event, for tax or estate planning reasons, that the purchaser wishes to buy the actual unit vs shares in a S.R.L., the closing costs will be calculated per the following table below. Furthermore, some Costa Rican CPAs make an argument that a unit purchase will enable a buyer to register an exact “cost basis” for the unit purchase vs. a corporation transfer. This will obviously allow the unit buyer to have a taxable cost basis of the full $279,900 vs a conceivably contested cost basis through the shares of a S.R.L. for these reasons, we recommend that each buyer consult his or her own tax advisor.

How do I finance the purchase of my Unit?

We are currently qualifying major International and Costa Rican National banks, such as Banco Nacional HSBC and Scotiabank, for permanent Buyer financing. We anticipate by the time of ground break that we will have several different mortgage programs for the proud owners at Sands Point. The Project may also have its own in-house mortgage consultant to assist each Unit owner with financing the 70% balance, after deposit, of the Unit price.

OPTIONAL RENTAL PROGRAM

The Sands Point property management company is anticipated to be The Enjoy Group, founded by Costa Rican resort developer Ruben Pacheco, also founder of the adjacent Puntarenas Hilton Doubletree Resort & Casino. Sands Point will provide unit owners a “leave-and-lease” service. Tenants will be located for owners, through the Enjoy Group, wishing to lease their units either full time or part time.

A complete record of accounting will be provided to the unit owner on a monthly basis. The owners will find comfort knowing that their property, while earning rental income, is also being looked after. A negotiated monthly fee or % of rental income will be charged for this service. Revenue is held in trust and distributed quarterly to the owners according to their agreement. Based on recent market studies, fully furnished units should lease for approximately $1/sq ft per month.

estimated monthly condo fee, which will include all labor and building expenses, is estimated at .25¢/square foot. However, the developer cannot guarantee such monthly amount until after full completion of the project and final bids have been submitted through The Enjoy GroupSands Point’s property management company.

THE TEAM

This is a list of people and companies involved supporting this ambitious real estate project:

Tidewater Partners Fund, LP

Bradley P. Tuyn is the Portfolio Manager of Tidewater Partners Fund, LP (the “Fund”) and Project Team Manager for Sands Point. Other previous Fund holdings include Glass Lofts, a NY-style mid-rise loft condominium project located in downtown Miami (www.glasslofts.com) Prior to launching the Fund in 2004, Mr Tuyn was Co-Portfolio Manager with the Titan Growth Fund and Vice President of Sterling Financial’s Research Department. He was appointed as Trustee to the Pompano Beach General Employees Pension Fund from 2003 to 2007. Before moving to Florida in 1998, Mr Tuyn worked for Harvard Management Company's global fixed income group where he stayed three years. He was also active in Boston-based investment groups and acquired/negotiated government and bank foreclosure properties for his personal real estate portfolio. His career in financial services began with The Boston Company's Institutional Trust Department. He attended Pratt Institute's School of Architecture before receiving his B.A. in Economics from Binghamt on University and completed his C.S.S. in Finance from Harvard University.

Arquitectonica

World-renowned architect Bernardo Fort-Brescia, founder of Arquitectonica (www.arquitectonica.com) was commissioned to design this unique collection of luxury homes. He ended up doing something special–a Tropical Modern style that exceeds the test of time; simply a piece of art. Arquitectonica is a company specializing in architecture, interior decoration and planning that began in Miami more than thirty years ago. Today, Arquitectonica has offices throughout the world, with its regional offices in Miami, New York, Los Angeles, Paris, Madrid, Hong Kong, Shanghai, Manila, Dubai, Lima and Sao Paolo. The firm is responsible for some the largest, most luxurious, famous commercial and residential buildings around of the world.

Dypsa

Diseños y Proyectos (DYPSA) (www.dypsa.net), one of the most highly respected Costa Rican companies specializing in providing consulting services in architecture and engineering, has for 43 years been evolving and adapting to the demands of the times. DYPSA is responsible for many of the major developments, buildings and other works which have marked the substantial progress of Costa Rica in recent years, and has also designed many projects of varied type, size and complexity, with the icon of its management, Building of the Comptroller General of the Republic. DYPSA is responsible for the preparation of the final Sands Point construction drawings to ensure that the design meets all construction and architectural Costa Rican standards.

Edificar

Arden Architectural Group

Denis E. Arden is the Owner’s Representative for Sands Point. Mr. Arden’s global real estate and architecture experience, which has been successfully ongoing for 35 years, includes the development of designs for residential, commercial, industrial, mixed-use, and telecommunications facilities in Canada, Central and South America, the Caribbean, Europe and Eastern Europe, including a 1,100 unit mixed-use, Venice themed, project in Romania. Mr Arden’s firm has won national, state, and local awards for multi-family residential design. His focuse as Owner’s Representative is to protect the Sands Point project through cost control measures and complement the project by enhancing design to ultimately produce a more feasible, marketable, and successful project. Mr. Arden holds a Bachelor of Architecture, a Masters of Fine Arts, and minors in Psychology and Philosophy from the University of Florida, and spent two years in the Urban Design Studio under Leonardo Ricci.

Leonardo Salazar

Mr Salazar is a member of Tidewater’s (Sands Point Owner) Investment Committee and has been an integral part of the firm’s Costa Rican initiatives and entrepreneurial spirit. Mr. Salazar is responsible for assisting the owner in analyzing and evaluating potential real estate development opportunities and supervises all Costa Rican-based development, engineering, legal and accounting professionals serving Tidewater’s Series projects, including Sands Point. He ultimately reports to the owner’s Representative and maintains monthly work schedules for the team to insure timelines are met for each project.

Born in San José, Costa Rica, Mr. Salazar is a licensed real estate attorney and partner of the law firm, BVSQ Abogados. He is also a Member of the Costa Rican Bar Association since 2002 and graduated from International University of Americas, San José, in 2002. He also earned a Masters of Laws from the International Cooperation University, San José, in 2005. Mr. Salazar speaks fluently: Spanish, English and Bulgarian.

Lang & Associates

Mr. Henry Lang is the legal advisor to Tidewater Partners Fund in Costa Rica, as well as the lead attorney for Sands Point Condominiums. Mr. Lang holds a L.L.M. (Master in Laws) from Harvard Law School and is a member of the Costa Rican Bar Association since 1990. Mr. Lang also studied at Georgetown University, University of Costa Rica and St. Thomas University. He also served as a researcher of the INCAE and as an external counselor for MINAE. Since 1992, Mr. Lang is Managing Partner of Lang & Asociados, which has among its areas of specialty, the legal advice on real estate transactions and acquisitions of many projects throughout Costa Rica.

Asesores Fiscales Corporativos (AFC)

AFC is a tax advisory firm based in San José, Costa Rica, that provides tax, accounting, and financial services to local, regional, and multinational companies doing business in Costa Rica and Central America. AFC’s team is composed by an interdisciplinary group of professionals highly qualified in tax issues, with ample experience in corporate assessment in the national and international level. Its professional team has an academic background of the highest level, composed by professionals in the tax, accounting, and financial areas with great expertise in local and global transactions, and knowledge of the Costa Rican and the Central American region. AFC is the only Tax Firm of its kind in the Central American tax market. The proposal presented by AFC differentiates due to its high technical quality and its short-term response. The aforesaid has been reflected by the Latin Lawyer magazine issued by the Great Britain Law Business Research Institute, which considered AFC and its partners among the most recommended tax advisors in Latin America.

In addition, the firm has been considered by Chambers Global, and a is member of the World Services Group, a worldwide network of leading professional services firms and companies.

For more information on the firm, please visit www.fiscales.net.

TIMELINE & PERMITS

What is the current status with final construction Permits? Maybe we have a table here?? LEO IS GOING TO RE_WRITE THIS

• In April of 2008: , Sands Point received its Setena D-1 environmental approvals.
  
• Noevmber 2008: Potable water available in front of the property
• February 2009, Sands Point received its Movimeto del Tierra (soil movement permits) According to our legal counsel and consultants, our planning approvals are secured and we are projecting final building permits in 2Q 2009.

How long will it take to construct Sands Point?

We are projecting an eighteen (18) to twenty-four (24) month maximum build-out from anticipated ground break. of December 2008.

How will the Construction of Sands Point be managed?

We areAfter pre-qualifying Costa Rica’s top tier contractors in order to find the correct balance of talent, commitment, experience, and quality; all to be supervised by our own in-house, on site construction manager, the project has hired one of Costa Rica’s top General Contractors, Edificar. This company has built many leading projects including Marriott Los Suenos and the award-winning Four Seasons Resort in Guanacaste.

OTHER QUESTIONS

What is the difference between Titled Beachfront and Concession?

A concession is a lease from the municipality; title means full ownership rights, and no terrestrial maritime zone restrictions apply.

Who currently owns the Property?

Sands Point’s lot is a three-acre “titled” property with no-land lease, which may be verified at the public registry under the current Costa Rican LLC named Sands Point Condominiums, Limitada, which is owned and controlled by Tidewater Partners Fund, LP - a registered U.S. private equity fund.

Will each Unit have an assigned parking spot?

Yes. Each unit owner will have an assigned parking space that is protected by 24-hour security. There will also be guest parking spaces.

What is the current water quality at the beachfront?

Puntarenas Beach, in front of Hilton Doubletree, is a “Blue Flag” beach. In 1996, with the aim of preserving this national treasure, the program "Bandera Azul Ecologico" (Ecological Blue Flag) was created by the Costa Rican water institute (AyA), in coordination with the tourism institute (ICT), the Chamber of Tourism and the Health Ministry.

This program, which is directed towards all coastal communities, was created as an incentive to protect the beaches from environmental contamination, so that they can continue to offer you their spectacular beauty. To earn and maintain the Ecological Blue Flag, the communities, hotels and Chamber of Tourism need to unite and work together, because three times a year the beaches are measured and evaluated according to the following parameters:

1. Quality of ocean water 35%

2. Quality of water for human consumption 15%

3. Quality of sanitary conditions on the beach . 10% Rated according to three aspects:

a. Trash
b. Domestic water run off
c. Industrial water run off

4. Safety 10%

5. Environmental education and Administration 10%

The Ecological Blue Flag is awarded each year to the beaches that obtain a minimum of 90% in the evaluation. Each year more and more coastal communities are becoming interested in participating for this reward. There has been an important increase in the number of beaches that have collaborated with the program and are working to become part of the Blue Flag Route.

FINANCING / OPTIONAL RENTAL PROGRAM / THE TEAM / TIMELINE & PERMITS / OTHER QUESTIONS