TABLE OF CONTENTS

COMPANY PROFILE MODERN CONCEPT OF GOLF COURSE MAINTENANCE SCOPE OF WORK ANNUAL MAINTENANCE PROGRAM Grass Cutting Aeration of the greens and Fairways Verticutting of Greens Refilling of Bunkers (Resanding) Application of Fertilizers and Fungicides SUPPORT LOGISTICS Supply of Equipment Manpower Supply of Related Maintenance Parts Supply of Materials (fertilizers, fungicides) Supply of Foreign Expertise SERVICE FEE ESCALATION COSTS I II III IV IV.I IV.II IV.III IV.IV IV.V V V.I V.II V.III V.IV V.V VI VII

PROPOSED GOLF COURSE TURF MAINTENANCE PROGRAM

I. COMPANY PROFILE

Alcor Trading and Turf Management is a duly registered company under the Securities and Exchange Commission (SEC). Alcor was incorporated on ___________. Alcors experience in the Golfing Industry started out in 1988 in Vancouver, B.C., Canada by Mr. Vicente R. Cordero Sr. Mr. Cordero and his wife, Mrs. Naty Cordero purchased Sunshine Woods Golf Centre, a medium sized golf course with driving range and banquet facilities. Through the years, Alex and Raul Cordero were employed in the company from 1990 until 1995 as General and Assistant General Managers. Being a smaller course most of the duties and responsibilities were hands on especially the maintenance of the course. In 1992 a second golf course, Aberdeen Hills Golf Links was purchased in Kamloops, B.C., Canada. This is a full sized, 18-hole championship course with approximately 800 members. Through the years Alcors expertise in the Golfing Industry was primarily obtained by operating these two courses and with the interactions of other establishments nearby. Experiences such as turf and equipment maintenance, implementation of systems and responsibilities of grounds crew and cost controls are just a few of the essentials in the operation of the maintenance of the golf course. Alcor Trading and Turf Management is currently involved in the importation and distribution of golf course and other industrial equipment. The company has a total of 3 years experience in the Philippines. Its clients includes Marapara Golf and Country Club, Sta. Barbara Golf and Country Club, Evercrest Golf Club, The Riviera Golf and Country Club and others.

II.

MODERN CONCEPT OF GOLF COURSE MAINTENANCE

A new trend is now being adopted in the Philippines to effect outside expertise to handle turf maintenance in golf courses. Instead of in-house turf maintenance golf course managers find this concept more advantageous. Listed are the following reasons: a. Labour problems we will assume and supply all ground maintenance crew necessary for the maintenance and upkeep of the golf course and equipment. This will eliminate your responsibilities of maintaining a workforce. A number of other courses have already adopted this method. b. Acquisition of equipment (mechanization) we will supply all of the necessary equipment to properly maintain this facility. All of the turf maintenance equipment will be imported from North America. c. Technical Support we will provide professionals and experts in the field of turf maintenance such as agronomist and expatriate consultant and a Head Superintendent.

III.

SCOPE OF WORK
Maintenance will cover from edge of the perimeter fence up to the edge of the hospital buildings.

IV.
IV.I

ANNUAL MAINTENANCE PROGRAM

Grass Cutting Wet season July to September. (Weather permitting) Fairways, landing area and tee boxes will be cut as often as possible with lighter equipment. Greens and fringes will be cut 3 to 5 times a week. Rough will be cut once or twice a week. Dry Cool Season October to February. Fairways, landing area and tee boxes will be cut 3 to 5 times a week. Greens and fringes will be cut 5 times a week. Rough will be cut once or twice a week. Summer Season February to June Fairways, landing area and tee boxes will be cut two (2) times a week. Greens and fringes will be cut five (5) times a week. Rough will be cut once a week.

IV.II Aeration of the Greens and Fairways Aeration of the Greens will be done quarterly while the Fairways will be done every six months. IV.III Verticutting of Greens Verticutting of the Greens will be done quarterly or whenever needed. IV.IV Refilling of Bunkers (Resanding) Upon takeover of Alcor Trading and Turf Management, bunkers must have a total depth of 4 to 6 inches. Thereafter, refilling and maintaining the said depth will be done quarterly. Any improvements of the shape and lip of the bunkers is separate and suggestions and costs will be submitted two (2) months after takeover. IV.V Application of Fertilizers and Fungicides Fertilizers and Fungicides will be applied on the following Greens, Fringes, Tee Boxes, and Landing Areas

V.
V.I

SUPPORT LOGISTICS
Supply of Equipment Alcor Trading, Inc. will invest and supply the necessary equipment in order to upgrade and improve the efficiency of the workforce. Unit 1 unit 3 units 3 unit 2 units 1 unit 1 unit 1 unit 1 set 10 units 3 units 1 unit 1 unit 1 unit 1 unit 1 unit Item Tractor with PTO Triplex Mower Hydraulic Greens Mower Hydraulic Ride on Greens Mower Walk behind Utility Vehicle w/ Hydraulic Dump Cushman w/ Top Dresser Aerator Verticutter Attachments for Greens Mower Ride on Weed Eater (trimmer) Gasoline Blower Gas Gasoline Chainsaw Gasoline Boom Sprayer Fertilizer Spreader PTO driven Back Pack Sprayer Drum Aerator TOTAL COST

P 5,000,000.00

V.II

Manpower Alcor Trading, Inc. will provide and assume responsibilities for the necessary greens keeping crews. The crew is as follows: 1 1 1 2 3 6 25 2 1 1 2 3 Expatriate Professional Greens Superintendent Agronomist Head Greens Superintendent Asst. Greens Superintendent Supervisor Machine Operators Labourer Accountant Secretary Head Mechanic Mechanics Security Guards

V.III Supply of Related Maintenance Parts Alcor will be responsible for the repairs and maintenance of its equipment and supply of maintenance parts. V.IV Supply of Materials (fertilizers, fungicides, sand) Alcor will be responsible for supplying materials such as fertilizers, fungicides and sand for the sole purpose of turf maintenance. V.V Supply of Foreign Expertise Alcor will provide both Foreign and Professional People in the field of Turf Management such as an Agronomist, Expatriate Greens Superintendent, etc. SERVICE FEE Contract Fee per annum is P 13,000,000.00. Terms of Payment monthly payable on the 1st day of each month. Contract Period Minimum 2 years renewable

VI.

VII.

ESCALATION COST Escalation of Cost will be based on the following: a. Based on Projected 9-10% inflation per year. Ex: - Mandated increase on Minimum Wage - Projected increase on Fuel - Normal increase on Materials and Supplies nd 2 year = 5% 3rd year = 7% 4th year = 10% The above increases are cumulative.

5th year = 10%

b. Exchange Rate Differential From every P 5.00 devaluation of the peso vis-vis from the base rate of P 44.00 will in effect result to an increase of 6%.