Cost to Profit Estimates For Property 1 (California)

Phase 1 : Property and Resource Prospecting and Acquisition

Staffing Section For Phase 1: Job Description for the Property Acquisition Manager The Property Acquisition Manager will keep the prospective property owner informed of how the property search is being conducted via phone calls, emails or meetings and determines organization's need for land and researches locations to determine appropriateness. Researches, negotiates and elects to purchase short- and long-term lease agreements that meet the organization's goals. Relies on extensive experience and judgment to plan and accomplish goals. May lead and direct the work of others. Reports to the Perspective Property Owner. Responsibilities range from reviewing plans, researching records, participating in property appraisals, calculating cost estimates, conducting building inspections, preparing reports, and property management activities. Determines the best utilization of agricultural space. Creates project teams as needed. Cost Estimates for Phase 1 (Property Acquisition): Single Cost Fees and Estimates Property Acquisition Management Team Retainer Fee Property Acquisition Management Team Monthly Fee Farm Vehicle Auto Insurance Auto Insurance Licenses Attorney Retainer & Consultation Travel Gear Motels En Route To Prospecting Meals En Route to Prospecting Destination Fuel En Route to Prospecting Destination $300.00 $2,000.00 $10,000.00 $200.00 $200.00 $10,800.00 Fixed Costs to Pay Monthly until Land is Acquired

$5,800.00 (upon 1st day of third month of service)

$2,000.00 $1,600.00

$500.00

$2,000.00

Real Estate Agent Property Prospecting / Fuel Motel Stays Emergency Miscellaneous Operations TOTAL Start-up Estimated Cost of Property (varies) Property Tax (varies)

$1,000.00 $600.00

$2,000.00 $1,000.00

$35,000.00 $69,000.00 $475,000.00

$5,000.00 $6,000 total in fixed costs to pay monthly until property close

TOTAL Cost of Start-up $544,000.00 + Property

Upon receipt of total startup cost of $69,000.00, the property with the most appropriate qualities for sustainable and profitable management shall be acquired. The process fully fostered by Highpoint Property Acquisition Team will then be available for purchase by the client who will be presented with an in-depth report detailing the properties attributes. The client can expect to invest between an estimated 250,000 (low) - $750,000 (high) to complete Phase 1, and become the owner of the most optimum property available for sustainable and profitable development by Highpoint. Estimated timeline from receipt of start-up cost to property purchase is 2-6 months. Phase 2: Sustainable Property & Resource Development at a Profit Staffing Section For Phase 2: Job Description for the Property Development Manager Job purpose: To manage all grounds, operations, personnel of the estate. Controlling of equipment, stock and purchasing. Management and accounting of grounds, gardens, farmland, horticulture and estate. Key responsibilities and accountabilities: Manage all estate staff to include: Training and development, succession planning and appraisal, Develop standard operating procedures for the estate, Prepare and agree budgets, control costs and monitor working practices, Manage estate Health and Safety Policy, Develop and manage an estate environmental management plan, Develop and deliver a maintenance program, Liaise with Property Owner/Client on upkeep and maintenance of estate. Raise animals, tend crops, plan strategies for maximum yield, organize farm administration, work machinery, organize associated businesses and manage staff. Employ technical and practical competence, as well as the ability to make sound business decisions. Farming will be generally arable (crops), horticulture, permaculture, dairy and or livestock, and are run by the management company. The Estate manager must understand and fulfill the need to satisfy regulations through a safe, high-quality process in an environmentally sustainable and profitable manner.

Typical work activities Planning, organizing and managing the activities of a farm to meet the objectives of sustainability and profit as agreed to by the owner. Tasks include: planning finances and production to maintain farm progress against budget parameters; practical activities, e.g. driving tractors, operating machinery, feeding livestock, spraying fields, etc; marketing the farm's products; buying supplies, such as nutrients and seeds; arranging the maintenance and repair of farm buildings, machinery and equipment; planning activities for trainee staff, mentoring and monitoring them; maintaining and monitoring the quality of yield, whether livestock or arable crops; understanding the implications of the weather and making contingency plans; making sure that products are ready for deadlines, such as auctions and markets; ensuring that farm activities comply with government regulations; monitoring animal health and welfare; maintaining a knowledge of pests and diseases and an understanding of how they spread and how to treat them; applying health and safety standards across the farm estate; monitoring and documenting all yields and land use to meet funding requirements; protecting the environment and maintaining biodiversity; keeping financial records up to date. diversifying their activities to supplement Estate income. Supplementary activities may include: providing bed and breakfast or holiday lets; field sports; horse trials; hunting / fishing / trapping; wind power generation and other alternate energy sources; speciality herds; farm shops selling the farm's own and other locally sourced produce; creating fishing lakes; livery stables; riding schools; worm farming; processing own products, e.g. vegetables or cold pressed oils, maintaining a cottage kitchen.

Cost Estimates for Phase 2 Fees Property Management Auto Insurance Schedule B Cottage Kitchen Business License Sellers License State Tax ID Federal Tax ID Farmers Association Membership Certified Producer's Certificate Egg Handler Registration Hunting License Internet Gas Furnishing House Farm Tools Misc Water Electric Seeds, Starts, Trees, & Mushroom Spores Lights Greenhouses (4) $80,000.00` $14,000.00 $80,000.00 $1,000.00 $500.00 $200.00 $650.00 $200.00 $1,600.00 $150.00 $140.00 $140.00 $140.00 $30.00 $25.00 $15.00 $41.00 $60.00 $200.00 Single Cost Estimates Fixed Costs To Pay Monthly until 1st Harvest * $5,800/month $200/month

Livestock Buckets Soil Holding Tank, Water Catchment System, Well, and Water Tank 5 Solar Pumps Farm Clothes Chicken Coop Building Materials Seasonal Labor Operations TOTAL

$300.00 $200.00 $26,773.00 $10,400.00

$5,000.00 $500.00 $500.00 $200.00 $30,000.00 $170,654.00 $422,308 total investment $2,916.00 $10,226.00/month until harvest*

*thereafter to be financed by farm profit

Phase 3 : Sustainable Estate and Resource Management at a Profit Staffing Section For Phase 3: Property Development Manager Transitions into Estate Manager with same job description shifting emphasis from Estate development & purchasing to Estate operations, maintenance, production and sales. Seasonal Farm & Maintenance workers & Interns: There are no necessary skills needed for these short-term seasonal positions & internships, but while this is an education and a learning based work environment, it is important to note that interns can be involved in physically demanding farm work on a day-to-day basis. The work we do requires commitment, responsibility, patience, attention to detail, willingness to follow detailed instructions, self-motivation, and mental and physical stamina. We also want to make sure that applicants have an adventurous, hardy nature and can make a dedicated commitment to the program for the duration of the seasonal position/internship.

Basic Farm Maintenance Fees / Estimates Single Cost Estimates Fixed Costs to Pay Monthly Auto Insurance Internet Gas Electric Misc Property Management Fee Operations TOTAL $0.00 $200.00 $60.00 $100.00 $2,00.00 $250.00 $5,800.00 $2,916.00 $9,526.00

Estimated Total Production Profits / Expenses for Phase 3 Products Per Season Profit (+) / Expense (-) Greenhouse Grown Kopi Luwak Sumatra Coffee Olive Oil Saffron Mixed Varieties of Mushrooms Reishi Mushrooms Lavender Vineyard Basil Cottage Kitchen Mixed Variety Produce Seasonal Labor & Equipment Basic Farm Maintenance Cost Annual Total Estate Manager Harvest Bonus 10% Annual Farm Profit $27,200.00 (+) $12,000.00 (+) $40,000.00 (+) $350,000.00 (+) $560,000.00 (+) $170,000.00 (+) $2,400.00 (+) $112,000.00 (+) $42,000.00 (+) $30,000.00 (+) $120,000.00 (-) $114,312.00 (-) $111,128.00 (-) $1,000,159.00

Summary: Phase 1 Acquisition $69,000.00 Down 2-6 months for completion of Phase 1 0 between $250,000 & $750,000 Property purchase Phase 2 Development $422,308 development investment $10,226.00/month until 1st harvest Time from beginning of Phase 2 Development to achievement of 1st harvest profits: estimated one growing season (5-7 months) or, if Phase 1 lasts a full 6 months then farming operations will begin as product variety and its relation to weather allows with staggered profit available over a 7-10 month period until 1st full harvest after 2nd growing season. Phase 3 Sustainable Estate Operation at a Profit Client Net Profit: $1,000,159.00 in your pocket per season (1-2 growing seasons annually depending on weather)