PROPERTY APPRAISAL

Applicant: Judicial File No:

I. BACKGROUND

Date of the Appraisal:

Validity of the Appraisal:

Owner of the Property:

Property type: Existing houses including playground in an urban settlement.

Location of the property:

Purpose of the Appraisal: Determine the current Commercial Value of the Property.

Objective/Aims of the Appraisal: By family inheritance judgment filed in Exp. No.

1638/2003.

Cadastral account number:

Drinking water contract number: Not proportioned.

II. CHARACTERISTICS OF THE URBAN AREA

Classification of the Zone: The property under study is located in a residential area of
2nd. Order.

Types of Dominant Construction: Houses Room of one and two levels, type Medium
Low, Medium and Medium High, with materials and constructive procedures common
from medium to good, in a 60% of directed project, and 40% of self-construction.

Saturation index in the area: 90%

Population: Normal, of rooting of the area for reasons of residence

Environmental pollution: There is none of relevance or danger to manifest, only the

resulting noise should be considered, in addition to slight visual contamination by
anarchic graphic advertising, and on a very small scale by weedy vegetation in vacant
lots.
Land use: According to the partial plan 2000-2020 of Urban Development of the city of
Nuevo Laredo, the zone counts on the Use of Habitation Land of Medium Density.

Access roads and their importance: Taking from the center of the city, on Maclovio
Herrera street, in the West-East direction, get to Juan F. de la Garza street, in Colonia
Viveros, turn south and take Bolvar street, approx. half block, on the north sidewalk, is
the property under study.

Public services and Utilities: Air electric power through concrete poles, drinking water
through household connections, drainage network through sewers, asphalt pavements,
sidewalks and concrete trimmings, public lighting, natural gas service, garbage
collection service, small shops, park, all this in a radius of 1 km.

III. GROUND SITUATION

Street location, Transversals and Crossings: The property is located on the north
side of Bolvar street, with a street that faces south, in its middle section, between Juan
F. de la Garza Street to the East and Dr. Galicia Street to the West.

Measurements and boundaries: According to copy of Public Deed No. 800 Vol. XV
Folio 241, dated May 24, 1967, passed before the faith of Lic. Fausto Sosa Aguirre,
attached to Notary Public No. 54 by and acting as Notary Public for license granted to
the Holder.

This property is registered in favor of Jess Hiracheta Villanueva and Jos Hiracheta
Jaramillo, with Registration No. 3,614 of the First Section File 73 of the Municipality of
Nuevo Laredo, dated June 10, 1967.

North: 8.40 Mts. Adjacent to lot No. 7 of Block 2 of Row 21 Quarter VII of the Official
Plan.

South: 8.40 Mts. It adjoins Calle Bolvar from its location.

This: 40.00 Mts. It adjoins with the private property of Mr. Contreras.

West: 40.00 Mts. Adjacent to lot No. 10 of Block 2 of Row 21 Quarter VII of the Official
Plan.

Sup. Of Land according to data of Public Deed No. 800 336.00 m

Sup. Of Construction according to physical survey carried out by the Expert 300.00 m

Topography and Configuration: Flat land of regular and symmetrical shape, slope
from North to South and natural evacuation of rainwater.
Allowed housing density: Medium Density, from 20 to 60 Viv / Ha.

Intensity of construction allowed: From 80.00%

Restrictions and / or easements: None observed, only those contemplated within the
Municipal Urban Development Plan, and those imposed by the official dependencies
(INAH, Semarnap, Sedesol, etc).

LOCATION SKETCH.
Norte

A
Calle Maclovio Herrera
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F.

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Calle Bolvar
a de

Calle Bolvar No. 308, entre Juan F. de la Garza y Dr. Galicia.

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Col. Viveros. c

Nuevo Laredo, Tamaulipas. i G

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 IV. GENERAL DESCRIPTION OF THE PROPERTY:

Current Use: Independently operating houses, developed in two floors, according to

the following detail:

Main house in front: P. Baja: Covered garage, living room, kitchen, laundry, bathroom
and patio.

P. Alta: Two bedrooms, bathroom and covered terrace.

Main house in the background: One floor: Lobby, living room, kitchen, three
bedrooms and bathroom.

Detached house on the top floor: Living room, kitchen, two bedrooms and bathroom.

Rooms for rent upstairs: Two bedrooms and bathroom.

Types of Construction: Type I .- Two houses independent room.

Type II.- House on the top floor, block walls and wooden deck.

Type III.- Bedrooms on the upper floor, block walls and sheet roof.

Quality and Classification of the Construction: Properties of Habitational use of Low

Type, Medium Low and Medium.

Number of levels: Two levels as maximum height.

Age of Construction: Approx. 25 years

Lifetime Remaining: Approx. 25 years

Total life: It is estimated as a maximum of 50 years in type I.

State of Conservation: Regulate in general terms.

Project Quality: Austere, functional on the ground floor, poor design of stairs, although
useful for the current use of home that is granted.

Profitable Units: Considering the independence shown by the areas, four independent
units can be defined, each with their own health services.
 V. ELEMENTS AND CONSTRUCTION MATERIALS

Foundation: Foundations based on running shoes and insulated footings of reinforced

concrete, with excavations at variable depth, the necessary to find a layer of firm
ground, suitable for the construction of buildings.

Structure: On the basis of load-bearing walls with vertical reinforcements (castles) and
horizontal reinforcement (reinforcement and closing chains) of reinforced concrete.

Walls: Walls of hollow block of concrete, in measures 15 x 20 x 40 cms., Surely seated

with mortar cement-sand prop. 1: 5 or similar.

Brick walls of baked clay, measures 7 x 14 x 28 cm., It is deduced settled with a mortar
similar to that used in block walls.

Slab: Solid reinforced concrete slab, approx. of 10 cms. thick, with steel reinforcement
in both directions, it is estimated that with a f'c = 200 kg / cm or approx.

Roof: Galvanized sheet cover, without paint, corrugated profile, placed and anchored
directly on a firm structure of commercial wood in Type II and a precarious structure of
wood in Type III, with direct support on the load-bearing walls.

Roofs: Type I. - Concrete-sand plastering on concrete roofs, with slope for rainwater
evacuation.

Type II and III.- Sheet cover with natural appearance.

COATINGS AND FINISHES

Flat surfaces: Indoors mixed system based on plaster and cement-sand mortar, placed
on rule and lead.

Tiling: Tile in bathrooms and kitchen, measures and common colors.

Ceiling: Indoor mixed system based on plaster and cement-sand mortar, placed at ruler
and level.

Floors: Concrete slabs with mixed termination based on ceramic tiles, measures 20 x
20 cm, mosaics of paste and , measures 30 x 30, tile tiles saltillo tile, 30 x 30, and
polished cement with and without color.

Landscaping: Of material similar to that presented in each of the areas that have
pavements

Stairs: Concrete ramp, with steps and reinforced concrete tracks forged on site.
Painting: Vinyl cream and melon colors on interior walls, white on panels and pink
outside.

Matte white enamel in commercial ironwork.

CARPENTRY:

Doors: Interior doors of commercial wood, of the drum type, with white enamel finish.

Windows: There is not.

Closets: There is not.

Lambrines or ceiling lamps: There is not.

Walls: There is not.

Floors: There is not.

Zoclos: There is not.

SMITHY:

Doors: Metallic, commercial iron and sheet lime. 24, with black enamel finish.

Windows: Metallic, simple design, with 1 "angle and " square, with white enamel finish

Gates and Gates: Main gate of commercial iron, austere design, on a block wall, with
black enamel finish.

ALUMINUM AND GLASS:

Doors: There is not.

Windows: Natural aluminum with 3 mm thick transparent glass

CERRAJERIA:

Veneers: Economic, national, patch type main access and knob on interior doors.

FACILITIES:

Hydraulic installation and Sanitary: Hidden, with PVC and galvanized copper pipes,
with discharge to the Municipal drainage network.

Bathroom furniture: Trademark, white color.

 VI. PREVIOUS CONSIDERATIONS TO THE VALUATION

The estimation of the Commercial Value of the Property was made through the analysis
and application of the generally accepted Valuation procedures that are cited below:

Physical Method: It is based on the cost of reproduction or replacement of a good

similar to the one analyzed; if the good is not new, its value will be affected by the
various applicable factors, as the case may be.

Capitalization Method: Considers that its value corresponds to capitalize the Real
Annual Income or that is capable of producing, at a capitalization rate determined based
on the characteristics of the valued asset (Age, Remaining Life, Use, State of
conservation, etc.)

Commercial Value: It is defined as the probable price that a good would have at the
date of the Appraisal, by which a seller and a buyer would agree to enter into an
operation of Purchase, both with full knowledge of the good and without any urgent or
urgent need. to carry out this operation.

The data regarding the owner, the Land Area, Measurements, Adjacent Areas and
types and types of construction, were obtained from a physical survey carried out by the
Expert in an inspection visit to the property carried out on May 08, 2004.

In the physical survey carried out by the Expert, there are minimal differences in relation
to those cited in the Property Deed, for which the latter are taken as the true ones to
perform the determination of land values., Since in all cases, the differences are less
than 40 cms, which are explainable because the valued property is a land with
buildings, not flat land, so that measures with flexible tape find physical obstacles that
cause this type of variation.

The demerit factors were calculated according to the Depreciation Formula of the Ross-
Heidecke authors, which are used in an ordinary manner and fully accepted in the
valuation practice.

The New Replacement Values (V.R.N.) considered in the Cost Approach, correspond to
the prices of the Construction Market in the plaza of Nuevo Laredo, with common
construction materials and procedures.
VII.- APPLICATION OF THE COST APPROACH (PHYSICAL OR DIRECT VALUE)

LAND: Lot Type or Predominant: 10 x 40 Street Value: $ -600.00

BUILDINGS:

SPECIAL INSTALLATIONS, ACCESSORIES ELEMENTS and COMPLEMENTARY

WORKS:

So:

RESULT OF THE APPLICATION OF COST FOCUS: .

VIII.- APPLICATION OF THE APPROACH OF INCOME or CAPITALIZATION.

ESTIMATED RENTS ACCORDING TO REAL ESTATE CLASSIFICATION:

MONTHLY TOTAL GROSS INCOME IN ROUND NUMBERS:

TOTAL AMOUNT OF DEDUCTIONS:

Empty 5.00% Administration 0.00%

Property Tax 1.00% Insurance 1.00%

Drinking water 0.00% I.S.R. 9.00%

Electric power 0.00% P.T.U. 0.00%

Maintenance 4.00%

NET MONTHLY INCOME:

ANNUAL NET INCOME:

Capitalizing the Annual Rent at a rate of 9.5%

Applicable to this case, it results:

RESULT OF THE APPLICATION OF THE APPROACH OF INCOME OR
CAPITALIZATION:

IX.- SUMMARY OF SECURITIES.

COST APPROACH (Physical or Direct Value) $ -798,271.90

INCOME APPROACH (Capitalization Value) $ -768,000.00

X.- CONSIDERATIONS PRIOR TO THE CONCLUSION.

XI.- CONCLUSION OF THE AVALUO.

The Commercial Value of the Property identified as: Urban land with buildings, with
housing use, located at Calle Bolivar No. 308, between Juan F. de la Garza and Dr.
Galicia, Col. Viveros, Nuevo Laredo, Tamaulipas., In numbers Round is the amount of:

$ -798,000.00

They are: Seven hundred ninety eight thousand pesos 00/100 M.N.

This amount represents the Commercial Value per day: May 08, 2004.

The Appraiser

Arq. Miguel Angel Ramrez Gonzlez.

Professional Certificate 1872961

Note: This appraisal consists of 10 pages, including a photographic annex of 2 pages,

and may not be used for a purpose other than that specified on the cover, without
express written order of its author.