COMMONWEALTH OF PUERTO RICO PUERTO RICO INDUSTRIAL DEVELOPMENT COMPANY

COMMONWEALTH OF PUERTO RICO PUERTO RICO INDUSTRIAL DEVELOPMENT COMPANY REQUEST FOR PROPOSALS RFP# 2015-ROPR1 DATE: May 7, 2015 RUMS OF PUERTO RICO FLAGSHIP STORE OLD SAN JUAN, PUERTO RICO DEADLINE FOR THE SUBMITAL OF PROPOSALS: June 22, 2015

TABLE OF CONTENTS: 1. Proposals Process... 4 1.1 Invitation to Participate... 4 1.2 Who Can Participate... 4 1.3 Purpose... 4 1.4 Terms and Conditions... 4 1.5 Scope of Work... 5 2. General Requirements:... 5 2.1 State Department Requirements... 6 2.2 Debarment List; Law No. 258 and other requirements:... 6 3. Documentation and Formal Requirements for the Proposal...6 3.1 Letter of Intent..6 3.2 Proposal Content.7 4. Use and Disclosure of Information/Confidentiality:... 11 5. Evaluation Process:... 12 5.1 PRIDCO s Request for Clarification from Respondent:... 12 5.2 Proposal Evaluation Criteria:... 12 6. Complete Acceptance of the Terms and Conditions of the RFP:... 13 7. Communications between PRIDCO and the Respondents during the Evaluation of Proposals:... 13 7.1 General Communications:... 13 7.2 Oral Presentations:... 14 7.3 Questions from Respondents:... 14 8. Proposal Submission Requirements:... 14 9. Calendar of Events:... 15 10. Receipt of Proposals:... 15 11. Evaluation of Proposals:... 16 12. Notification to Respondents:... 16 13. Reconsideration and Judicial Review:... 16 14. General Conditions for Negotiations and Possible Award of Contract:... 16 15. Canceling a RFP:... 17 16. There is no Obligation to Execute a Contract:... 17 2

17. Board of Directors:... 17 18. PRIDCO Options:... 17 19. Additional Relevant Information... 20 20. Appendixes.20 3

1. Proposals Process 1.1 Invitation to Participate Pursuant to the public policy of the Government of the Commonwealth of Puerto Rico to promote and develop Puerto Rico as a tourism destination and Rum Capital of the World, the Puerto Rico Industrial Development Company (PRIDCO), through its Rums of Puerto Rico program, the Puerto Rico Tourism Company, the Puerto Rico Trade and Export Company, and the Department of Economic Development and Commerce (DEDC) are proposing a state project to launch a Rums of Puerto Rico flagship store in the Old San Juan Area. This Request for Proposals (the RFP ) is issued by PRIDCO, a public corporation created to promote Puerto Rico s manufacturing industry and as a premier destination for foreign and local investment. PRIDCO s Rums of Puerto Rico program has been in place for more than 25 years to protect the local rum industry, promote local rum production and increase the sale of Puerto Rican rum in the United States. The Rums of Puerto Rico program provides marketing incentives to Puerto Rico s finest brands of rums, thereby helping to exponentially increase their international market outreach through media campaigns, promotional events and activation initiatives. PRIDCO is soliciting competitive sealed proposals from qualified firms and entities interested in designing, building, operating, maintaining and promoting the Rums of Puerto Rico flagship store in Old San Juan (each, a Respondent ). The flagship store shall have an elegant, high- end aesthetic and design and provide and unique experience for the visitor who wants to learn about the history, characteristics and variations of our local rums. The store shall include a bar area, a store area for Rums of Puerto Rico/Puerto Rico Tourism Company authorized merchandise, and a tasting area for visitors to experience the excellence of the rums manufactured in Puerto Rico. The flagship store will only have Rums of Puerto Rico products and related promotional material for sale, 1.2 Who Can Participate For this Request of Proposals, PRIDCO will only allow the participation of Respondents that are legal entities, authorized to do business in Puerto Rico with at least one (1) year of experience in the bar or hospitality industry. 1.3 Purpose PRIDCO, through its Rums of Puerto Rico program, the Puerto Rico Tourism Company, the Department of Economic Development and Commerce, and the Puerto Rico Trade and Export Company, issued this RFP, with the objective of opening a Rums of Puerto Rico flagship store in Old San Juan. The prevailing Respondent will design, build, operate, maintain and promote the Rums of Puerto Rico flagship store. 1.4 Terms and Conditions The Puerto Rico Tourism Company has the right of use of a property in Old San Juan, also known as La Casita, which is currently used as a Tourist Information Center, located close to the cruise ship piers at Plaza de la Dársena. See Appendix A. The space is available and PRIDCO desires to engage an 4

organization who is qualified and capable of being in charge of the efforts of designing the interior of the property, manage, operate, maintain and promote the Rums of Puerto Rico flagship store, which would include a bar area, a store area for Rums of Puerto Rico/Puerto Rico Tourism Company authorized merchandise, and a rum tasting area for visitors to experience the excellence of the rums manufactured in Puerto Rico. The flagship store will only have Rums of Puerto Rico products for sale, in addition to pre- approved Puerto Rico merchandising material. 1.5 Scope of Work To create the interior ambiance for the Rums of Puerto Rico flagship store; design, build, operate maintain and promote said store, which would include a bar, a store, a display and a tasting area for visitors to experience the excellence of all the rums manufactured in Puerto Rico, and an educational area or display dedicated to the history of rum in the Island. The flagship store will only have Rums of Puerto Rico products for sale. The prevailing Respondent will also be in charge of developing Rums of Puerto Rico and Puerto Rico Tourism promotional merchandise (subject to limitations), to be sold in the store.. 2. General Requirements 2.1 State Department Requirements All Respondents, if incorporated, must show they are in good standing with the Puerto Rico State Department ( State Department ). All Respondents that are foreign corporations (out- of- state) must file the necessary documents with the Division of Corporations of the State Department requesting authorization to do business in Puerto Rico, which shall have been requested prior to the date of submission of the Proposal hereunder. Failure to demonstrate compliance with this requirement may result in rejection of the Proposal without further consideration. 2.2 Debarment List; Law No. 458 and other requirements If any of the Respondent s principals, officers, directors or partners has been debarred, suspended or otherwise lawfully precluded from participating in any public procurement activity, the Respondent shall disclose that information in its offer. Failure to provide such information shall result in the rejection of the offer. Each Respondent s principals, officers, directors and partners must be in good standing with PRIDCO, and with any federal or local agency that has or had a contractual relationship with the Respondent or any of its principals, officers, directors and partners. Therefore, if a state, federal or local agency has terminated any contract with a Respondent for default; the Respondent will not be eligible to submit a Proposal in response to this RFP. In addition, each Respondent shall certify that none of its principals, directors, officers or partners have been convicted or are under any investigation by any state, federal forum, or in any other country, of the crimes identified under Law No. 458 of December 29, 2000, as amended. a. Mandatory Disclosures In addition, the Respondent must disclose the following information: Actual, apparent and potential conflicts 5

Ownership interests Identification of officers and directors of bidding entities Overlapping ownership interests or directorships in other companies. b. Contracting Requirements The Respondent shall comply with all public contracting requirements set forth in the Treasury Department s Circular Letter No. 1300-25- 14, dated April 10, 2014, in connection to payment of income, and personal and real property taxes. The selected Respondent(s) shall submit all certifications required under the cited circular letter as required by the notice of award. c. Labor Laws and Regulations Respondent shall comply with all applicable labor laws and regulations including, without limitation, Fair Labor Laws, Equal Employment Opportunity Program requirements, unemployment tax, temporarily disabled tax, worker s compensation and social security taxes. Agreement to be bound by this RFP and Agreement Terms Respondents shall consider only the matters included in the RFP documents and any amendment thereof in preparation of Proposals. The Proposals will be evaluated by the Evaluation Committee as described in this RFP. By submitting a Proposal, each Respondent agrees, if the Proposal is accepted, to enter into a contract with PRIDCO for the Term set forth in this RFP. Each Respondent also accepts all terms and conditions of this RFP and any amendment thereof. The Respondent s Proposal and any additional information submitted by the Respondent or negotiated between Respondent and PRIDCO prior to selection, together with this RFP and any addenda hereto, will serve as confirmations of Respondent s acceptance of all terms and conditions therein. 3. Documentation and Formal Requirements for the Proposal: 3.1 Letter of Intent: Prior to submitting its Proposal, the Respondent shall submit to PRIDCO via email a Notice of Intent as a condition of participation in the Request for Proposal process. If such Notice of Intent is not delivered on or before the deadline established in the Calendar of Events, the Respondent waives be notified of notices, changes and/or official documentation as part of this Request for Proposals. The Notice of Intent must contain the following information: name of the contact person, name of the entity concerned, the contact position held in the company, phone number, fax number, physical address, and email. See Appendix B. 3.2 Proposal Content: The proposal must include the following information/documentation: 6

A. Documents related to the Respondent s Legal Status: a) Copy of the Certificate of Incorporation. b) Copy of the licenses and certifications of the Respondent to do business in the Commonwealth of Puerto Rico. c) Certificate of Good Standing issued by the Puerto Rico Department of State. d) No- debt Certification issued by the Department of the Treasury. e) No- debt Certification issued by the Department of Employment and Human Resources. f) No- debt Certification issued by the Puerto Rico State Insurance Fund Corporation. g) No- debt Certification issued by the Municipal Revenue Collection Center. h) No- debt Certification issued by the Administration for Child Support Enforcement i) A list of the Directors and Shareholders. B. Documents related to the Respondent s Experience: a) Company Profile b) Executive Summary. c) At least five (5) references from suppliers that have provided to the respondent products and/or services as part of a similar business to that required in the present RFP in the last five (5) years. The references must include supplier names, contact persons, phone and fax numbers, and emails. d) A written statement along with this Proposal certifying that no type of conflict of interest exists between the participant and PRIDCO or any other agency of the Commonwealth of Puerto Rico. Please, refer to Appendix C and submit along with the Proposal. C. Documents related to the project proposal being offered: a) A Work Plan that includes the following: i. Methodology, execution, and work schedule with estimated dates for completing each phase or stage of the project. Respondents shall take into consideration and include in their proposals all the activities and specifications disclosed in this RFP. 7

ii. Marketing plan to promote the Rums of Puerto Rico products and the flagship store in Old San Juan, as well as the integration of the Puerto Rico, All- Star Island and Five Star vacation experience strategy. Neither PRIDCO nor the Commonwealth will provide the prevailing respondent free products under the Rums of Puerto Rico brand for sale nor allow Rums of Puerto Rico promotional material to be placed into sale on all products developed by Rums of Puerto Rico for its own local or U.S.A. promotion. It is expected that the respondent will develop, buy, create and/or manufacture all promotional material following the written approval from Rums of Puerto Rico and the Tourism Corporation maintaining same taste, look and feel as the current campaign that is in place 1. This plan shall include: 1. Marketing and branding strategy (including creation of a message strategy and positioning statements); 2. Public relations; 3. Review of current events taking place in Old San Juan and recommendations on how to incorporate the Rums of Puerto Rico flagship store in those events; 4. Promotional materials; 5. Ads and sponsorship; 6. New events and activities to promote the Rums of Puerto Rico flagship store; 7. Website information and social media recommendations and strategies; 8. Other related marketing recommendations and strategies. iii. iv. The Rums of Puerto Rico flagship store shall have an educational area or display dedicated to the history of rum in Puerto Rico and rum appreciation. PRIDCO will provide the Rum Ambassador Certification training (free of cost) to the personnel responsible for providing customer with rums historic background. Respondents shall take into consideration that the information and/or media generated to provide this historic background shall be previously approved by PRIDCO. All rum products shall be equally displayed in the store. v. The store must be open, as a minimum requirement, from Monday to Sunday. vi. The award of this RFP shall not be considered as a licensing authorization. b) Detailed description of the services offered, including (but not limited to) the following elements: 1 This RFP shall not be considered as a license to develop, buy, sale, distribute, create and/or manufacture promotional material with the Logo of Rums of Puerto Rico and the Tourism Corporation. 8

i. Project Team Structure: Provide a description of team structure in charge of development and implementation of the project and internal controls to be used during the course of the project, including any subcontractors. Provide an organizational chart of your firm indicating lines of authority for the personnel that will be involved in performance of the project and the relationship of this staff to other programs or functions of the Respondent. This chart must also show lines of authority to the next senior level of management. Also include the names of the Respondent personnel with the primary responsibility and final authority over the work. ii. iii. Staff Qualification/Experience: Identify staff, including subcontractors, who will be working on the flagship store, indicating the responsibilities and qualifications for such personnel. Include also an estimate of the employees to be hired for the operation of the Rums of Puerto Rico flagship store and a description of their responsibilities/tasks. Detailed description of the respondent experience in similar or relevant projects. c) Sketch for the proposed interior design, including samples and pictures of the materials/fabrics to be used. PRIDCO, though its Rums of Puerto Rico office, will be the sole and exclusive owner of the design made for the ambiance of the Rums of Puerto Rico flagship store (the design that was provided by the Prevailing Respondent). Sketch of concepts for possible seasonal rotation. d) Time frame and specifications for the interior design and construction activities. The design and construction activities shall comply with all state and federal laws and regulations, especially those related to the San Juan historic zone. e) Description of services including rum tastings, design/sample for the menu and gift certificates to be distributed in the flagship store, promotional merchandise and sample of the tasting packages and pricing to be offered. f) The name of the business is expected to be related and/or closely related to the Rums of Puerto Rico name. This will facilitate the recognition of the quality seal brand, a promotion that will be the cornerstone of all efforts moving forward. g) Respondent s contact information, including the name, position, telephone number, e- mail, and fax number of the coordinator/contact person for the respondent during the process. h) If the respondent plans to carry out the project with a subcontractor or in a partnership with another company, the Work Plan must address the companies relationship and how potential conflict of inefficiencies related to the organization, communication and excessive processes will be treated. If a partnership is being considered in this RFP submission, the Proposal must include/address the responsibility of each official/partner. i) Any other type of information and/or information that supports, endorses, or reinforces each of the technical aspects of the evaluation. 9

D. Documents related to the financial aspects of the proposal being offered: The Successful Respondent shall receive from PRIDCO seed money up to the amount of thirty thousand dollars ($30,000), to be used to cover in part the costs incurred in the design and construction of the ambiance of the interior of the premises to be used as Rums of Puerto Rico flagship location and promotional and marketing activities. PRIDCO will not finance the activities specified in the Proposal. In other words, the sole source of income will be monies generated by the operations and activities described in this RFP. To allow PRIDCO to evaluate their financial capacity, Respondents shall include the following information: a) Cost and expenditures (including personnel and equipment/materials costs, and expenses necessary to achieve the tasks set out in this RFP). The employees that will work on the Rums of Puerto Rico flagship store will be required to wear a uniform with the Rums of Puerto Rico logo/quality seal (the uniform shall not include logos from any of the rum companies). However, the signing respondent will have to ask PRIDCO for the approval of said uniform, prior its use. Respondents shall take into consideration that the Puerto Rico Tourism Company will provide the location set forth for the operation of the Rums of Puerto Rico flagship store free of cost for six (6) months. Then, the prevailing respondent shall pay the Puerto Rico Tourism Company the amount of $3,000 per month for the lease of the premises, for the first three (3) years of the Contract. PRIDCO will provide a Sketch of the premises by addendum. The Sketch shall not be considered a contractual element. Also, Respondents shall acknowledge that PRIDCO will grant the signing respondent the nonexclusive right to manufacture, market, and sell licensed products within the flagship store in Old San Juan. Based on the previous approval by Rums of PR and the Tourism Company on all new and reused promotional material to be used in the store shall keep the same taste, look and feel of the promotional campaign that is currently in place at the time of the promotion. b) A business plan demonstrating the course to steer the operation independent from government funds from PRIDCO or any entity of the Commonwealth of Puerto Rico, except to the seed money up to thirty thousand dollars ($30,000) to cover costs incurred for the design of the ambiance of the interior of the premises to be used as Rums of Puerto Rico flagship location, and promotional and marketing activities. PRIDCO, though its Rums of Puerto Rico office, will be the sole and exclusive owner of the design made for the ambiance of the flagship store. Neither PRIDCO nor the Commonwealth will provide the prevailing respondent free products under the Rums of Puerto Rico brand for sale nor allow Rums of Puerto Rico promotional material to be placed into sale on all products developed by Rums of Puerto Rico for its own local or U.S.A. promotion. It is expected that the respondent will develop, buy, create and/or manufacture all promotional material following the written approval from Rums of Puerto Rico 10

and the Tourism Corporation maintaining same taste, look and feel as the current campaign that is in place. 2 c) Certified copy for Audited Financial Statements for the last five (5) years. d) Documentation to evidence lines of credit and investment capital available for this project. Every Respondent shall submit the documents requested in this section and in any other portion of this Request for Proposal. PRIDCO will verify the compliance with the requirements set for herein. PRIDCO reserves the right to disqualify Respondents that do not comply with any of the requirements set forth in this RFP. 4. Use and Disclosure of Information/Confidentiality: PRIDCO is not obliged to treat any information submitted in connection with a Proposal as proprietary or confidential unless (i) the Respondent so identifies such information in its Proposal as proprietary or confidential; and (ii) PRIDCO determines that, according to law, the information is proprietary or a trade secret and legitimately requires such treatment or that it must otherwise be protected from publication. PRIDCO s obligations with respect to protection and disclosure of such information shall at all times be subject to applicable law. If the proposal includes information that the Respondent does not wish to be disclosed publicly for any reason or purpose, or used the Commonwealth except in the process of evaluation, the Respondent must include with the proposal a statement signed by their legal representative with the following description: USE AND DISCLOSURE OF INFORMATION This proposal includes data that shall not be disclosed outside the agencies involved in this RFP and shall not be duplicated, used, or disclosed in whole or in part for any purpose other than to evaluate this Proposal. If, for any reason, a contract is awarded to this offer or as a result of- or in connection with- the information provided, PRIDCO, as the entity leading this process, shall have the right to duplicate, use, and/or disclose the data to the extend provided in the signed contract. This restriction does not limit PRIDCO s right to use information contained in this document if it is obtained from another source without restriction. The data subject to this restriction are contained in the identified sections. However, Respondents shall limit such designation to only those particular portions of the Proposal that actually constitute proprietary information, trade secrets, or other confidential matters or data. Identification of the entire Proposal or entire sections of the Proposal or other overly broad designations as confidential or proprietary are strongly discouraged. PRIDCO shall have the right to use all and/or portions of the Proposal, other than those portions identified and marked as confidential or proprietary, as it considers necessary or desirable in connection with this RFP; and, by the submission of the Proposal, the Respondent thereby grants to PRIDCO and the 2 This RFP shall not be considered as a license to develop, buy, sale, distribute, create and/or manufacture promotional material with the Logo of Rums of Puerto Rico and the Tourism Corporation. 11

concerned agencies/instrumentalities of the Commonwealth of Puerto Rico an unrestricted license to use such unrestricted portions of the Proposal. 5. Evaluation Process: 5.1 PRIDCO s Request for Clarification from Respondent: a) For the purpose of improving the understanding of the submitted proposals, allowing reasonable interpretations of the proposals, or facilitating the evaluation for the Evaluation Committee, said committee may submit to the respondent, in writing, a request regarding the explanation, corroboration, confirmation, validation, or clarification of any aspect of the Proposal. b) Likewise, during the process, the Evaluation Committee may offer the Respondent to correct minor irregularities, informalities, or clerical errors in the Proposal. PRIDCO may waive minor informalities, without prejudice to the other Respondents. c) Clarification Requests or Requirements will be addressed to the contact person indicated in the Respondent s Proposal. 5.2 Proposal Evaluation Criteria: Proposals will be evaluated by the Evaluation Committee using the following three (3) criteria: a. Technical and Operational Capacity The evaluation will assess the experience of the Respondent from a technical and operational perspective, both in the development phase, and the implementation thereof. The following criteria will be taken into consideration: i. Effectiveness. The Respondent s technical proposal complies with the substantial and material information specified in this RFP. ii. iii. iv. Validated references. PRIDCO and the Commonwealth of Puerto Rico will validate the performance of projects carried out by the Respondent for previous clients. Responsibility. Whether the Respondent s Technical Proposal complies with the technical specifications of the RFP in order to determine the Respondent s capacity, tenacity, and perseverance/trustworthiness in terms of completing the project. Relevant Experience/Past Performance in businesses similar to the operation of a Rums of Puerto Rico flagship store. v. Meeting deadlines performing the tasks contemplated in the RFP. b. Financial and Investment Capacity - will assess ability to financially develop a project of this type, according to the conditions set out in this RFP, including the seed money to be 12

provided by PRIDCO, as well as, the investment to be made by the Prevailing Respondent to guarantee the success of the Project, and other mechanisms necessary for self- sustainability. c. Marketing Plan and the design for the Rums of Puerto Rico flagship store reflect Rums of Puerto Rico s policy, and guarantee the reception and success of the project. Criteria Evaluation Table Criteria Technical and Operational Capacity Financial and Investment Capacity Marketing Plan and Design Total Weight/Score 30 points 30 points 40 points 100 points After the Evaluation Committee has selected the prevailing respondent, but before awarding the Contract, PRIDCO may negotiate the terms and conditions of the contract, as well as its execution. After the negotiations, PRIDCO may request an improved and final proposal in order to give the Respondent the opportunity to review and modify their initial proposal. 6. Complete Acceptance of the Terms and Conditions of the RFP: By submitting a Proposal in response to this RFP, the respondent accepts and agrees to follow and be subject to the procedures, terms, conditions, and instructions here established. As part of the requirements for this Request for Proposal, each respondent shall complete a Declaration of Acceptance of the Terms and Conditions. See Appendix D. 7. Communications between PRIDCO and the Respondents during the Evaluation of Proposals: 7.1 General Communications: PRIDCO is committed to protecting the integrity and transparency of this RFP. PRIDCO is also committed to obtaining the most efficient services. In order to balance these interests, communications between the Respondent and PRIDCO shall comply with the requirements of this RFP. PRIDCO could initiate communications with one, several, or all Respondents, if any of the following occurs: i. PRIDCO identifies a mistake or need to clarify information provided in the RFP or its Exhibits; ii. A respondent has submitted information to PRIDCO that requires clarification in order to meet criteria and evaluate the merits of the proposal; 13

iii. iv. One or more Respondents have not satisfactorily submitted all documentation and information required by this RFP, and PRIDCO deems it necessary and appropriate in the public interest, not to reject the proposal; or Any other reason for which PRIDCO understands to adversely affect the efficiency of this RFP and the best public interest. 7.2 Oral Presentations: PRIDCO may request any Respondent to provide an oral presentation of its Proposal, in order to clarify any questions regarding the requirements of the RFP and to ensure compliance with specifications, confirm its terms and is understood by the respondent. PRIDCO will contact the Respondent to arrange a date, time and place for the presentation. After each presentation, PRIDCO may require the Respondent to submit a written confirmation of the terms clarified during the presentation. Previous to awarding this RFP, any information related to a proposal or evaluation will not be discussed with any party other than the Respondent submitting information and the personnel involved in the evaluation and selection process. 7.3 Questions from Respondents: Respondents may submit questions or requests for clarification and/or further information about the technical specifications of the RFP no later than five (5) days before the closing date of the RFP process. Inquiries must be made in writing to the attention of Antonio Medina- Comas, Executive Director of the Puerto Rico Industrial Development Company and emailed to: [casitarones@pridco.pr.gov]. Answers to these questions or requests for information will be provided electronically and in writing to each respondent no later than three (3) working days before the closing date of the bidding process. 8. Proposal Submission Requirements: The proposal must be submitted in writing: one (1) original and five (5) copies. The sealed envelope containing the respondent s proposal must be identified in the following manner: RFP PRIDCO RUMS OF PUERTO RICO RUMS OF PUERTO RICO FLAGSHIP STORE (Respondent s Name) The proposal must be received by 3:00 p.m. (AST) on June 22, 2015 at the following address: Puerto Rico Industrial Development Company Office of the Executive Director PO Box 362350 San Juan, PR 00936-2350 14

If physical copy is not received on or before the date and hour indicated above, the proposal will not be considered. Proposals must also be emailed to Antonio Medina- Comas, Executive Director of the Puerto Rico Industrial Development Company. They must be in PDF format and sent to the following e- mail address: [casitarones@pridco.pr.gov], along with all the appendixes included in each document. This email must be also submitted on or before 5:00pm (ATS) on June 22, 2015. The validity periods of the proposals will start at the time of delivery and end of the date of the final contract award. Incomplete proposals may be rejected. By submitting a proposal, the respondent acknowledges and agrees to the rules and conditions governing the bidding process of this RFP. The respondent also certifies to the truth of all the information provided upon submission in this bidding process. The respondent will be responsible for all costs and expenses incurred and related to the preparation and/or development of the proposal submitted in answer to this RFP. 9. Calendar of Events: The estimated itinerary for the activities related to this RFP is detailed below: Due Date May 7, 2015 May 14, 2015 May 18, 2015 June 15, 2015 June 22, 2015 at 3:00 pm. ET Matter PRIDCO will issue/publish the RFP. Deadline to present Letter of Intent to Participate in the RFP Process. Compulsory meeting with Respondents and inspection of the premises identified for the operation. Deadline for Respondents to submit questions, require clarifications, or request more information from PRIDCO. Proposal Due Date PRIDCO reserves its right to review the itinerary at any moment as it deems necessary. In said instance, PRIDCO will notify the Respondents through electronic mail of any modification to the itinerary. The non- receipt of any written communication will not discharge Respondents of their obligation to comply with the modifications. For said reason, Respondents shall be diligent and take the necessary steps in order to be informed of events related to this RFP. PRIDCO may summon one (1) or more meetings before the deadline for the presentation of proposals in order to provide a general discussion of the requirements established. PRIDCO urges the Respondents to participate in said meetings. 10. Receipt of Proposals: Proposals will be dated and time stamped immediately upon receipt at PRIDCO as evidence of timely delivery. Proposals will not be opened publicly, but PRIDCO will keep a record of all Proposals delivered in accordance with this RFP. Only Proposals timely received will be considered and evaluated. 15

11. Evaluation of Proposals: PRIDCO will select a committee to evaluate each of the responsive hard copy proposals submitted in response to this RFP. No Respondent shall make any attempt to contact any member of PRIDCO or any member of the agencies named in Section 1.1. If a Respondent makes an attempt to contact regarding this proposal to any member of the evaluation committee, or any of the agencies/instrumentalities of the Commonwealth that are participating in this RFP, the Respondent will be disqualified. Section titled Communications between PRIDCO and the Respondents during the Evaluation of Proposals establishes the protocol to be followed to communicate during this process. 12. Notification to Respondents: The prevailing Respondent, as well, as all non- winning Respondents shall be notified of the award of this RFP via certified mail. 13. Reconsideration and Judicial Review: Any Respondent adversely affected by a decision made by PRIDCO in connection with the selection and award procedures, provided in this RFP, may submit a request for reconsideration to the Review Committee in accordance with the Uniform Administrative Procedure Act, Law No. 170 of August 12, 1988, as amended. Such application shall be considered within ten (10) days after presented. If a determination is made on motion, the period for requesting a reconsideration request will consist of ten (10) days, shall be in writing and identify the name and address of the requesting party; shall include the reasons for making the request, including copies of relevant documents; and shall specify the relief sought. A request for reconsideration shall not stay any action of PRIDCO related to the procurement process. A request for reconsideration that does not comply with the terms the applicable law or in this RFP will be rejected outright or denied within ten (10) days after being filed. If a determination is made on the motion, the term to apply for judicial review with the Court of Appeals shall be counted from the date on which a copy of the notification of the decision of the Corporation is filed in the case. If PRIDCO fails to take any action with respect to the request for reconsideration within ten (10) days after presented, it shall be deemed to have been outright rejected and, thereafter, the term shall run for judicial review with the Court of Appeals. 14. General Conditions for Negotiations and Possible Award of Contract: The Prevailing Respondent shall enter into negotiations with PRIDCO geared toward the eventual execution of a lease agreement for the property where the Flagship store will be located. Negotiations will be conducted in good faith between the Prevailing Respondent and PRIDCO. However, PRIDCO may terminate negotiations, in its sole discretion, and without any penalty, if it determines that 16

negotiations do not serve the public interest. PRIDCO will evaluate requested exceptions and accept or reject in accordance to its assessment. If PRIDCO decides to execute a lease agreement with the Successful Respondent, the term of said agreement shall be no less than three (3) years, subject to up to two (2) extensions of two (2) years each, to be granted at PRIDCO s sole discretion. The Proposal submitted by the Prevailing Respondent will be incorporated into the agreement. Any exceptions to the stated above should be agreed by PRIDCO and the Prevailing Respondent (the parties) before granting the contract. 15. Canceling a RFP: PRIDCO may cancel this RFP at any time prior to the execution of the corresponding agreement when said cancellation is determined to be necessary or convenient or otherwise considered to be in the best interest of PRIDCO or the Commonwealth of Puerto Rico. Said cancellation will not result in liability of any kind to PRIDCO or any other agency or instrumentality of the Commonwealth of Puerto Rico. 16. There is no Obligation to Execute a Contract: PRIDCO shall not be obligated to enter into an agreement with the Successful Respondent. 17. Board of Directors: All negotiations, conversations and offers are bound to the final approval of PRIDCO s board of Directors. 18. PRIDCO Options Without limitation and in addition to other rights reserved by PRIDCO in this RFP and when it is determined to be in its best interest, PRIDCO reserves and holds, at their sole discretion, the following rights and options: a) To accept or reject any and all submittals, in whole or in part. b) To reject a Proposal if the Respondent failed to furnish any required security or to submit the data and documents required in the RFP package, or if the Proposal is nonconforming, non- responsive, incomplete, inadequate, conditional or irregular. c) To reject any Respondent that has an unsatisfactory performance record, as demonstrated by past work performed for PRIDCO, specifically from the standpoint of work quality and progress. d) To reject any Proposal due to uncompleted work which, in the judgment of PRIDOC, might hinder or prevent the prompt completion of additional work, if awarded. e) To reject a Proposal if any of the Respondent s previous agreements with PRIDCO or any other public or private entity were declared in default. 17

f) To enter into discussions with any Respondent and with more than one Respondent at a time. g) To waive or allow the Respondent to make changes during discussions of any defects, informalities, irregularities, technicalities or inconsistencies in a Proposal. h) To require additional information from one or more Respondents to supplement or clarify the Proposals submitted. i) To conduct further investigations with respect to the qualifications and experience of each Respondent, either from the documents submitted in the RFP or from other sources. j) To conduct further investigations regarding the technical and financial qualifications of Respondents from any sources deemed necessary, which sources might be other than those identified in the Proposal. k) To visit and examine any of the projects referenced in the Proposals and other owned, operated or built by the Respondent to observe and inspect such facilities and their operations. l) To reject a Proposal if there are unauthorized additions, conditional or alternate proposals or irregularities of any kind which may tend to make the Proposal incomplete, indefinite, or ambiguous as to its meaning. m) To cancel without prejudice, any selection of Respondents, before the execution of the Agreements). n) To reject Proposals from a Respondent shown to be submitting Proposals under different names for the same services. o) To reject any or all Proposals upon evidence of collusion among several or all Respondents. p) To cancel this RFP in whole or in part, at any time, with or without substitution of another RFP if such cancellation is determined to be in the best interest of PRIDCO. q) To take any action affecting the RFP process, or the subject matter of this RFP, that would be in the best interests of PRIDCO. Failure to provide any and all of the above requested information shall be considered a substantial defect. All documents and products created by the Respondent s and their sub- consultants shall become the exclusive property of PRIDCO. 19. Additional Relevant Information: Puerto Rico Industrial Development Company (PRIDCO) http://pridco.pr.gov/ 18

Department of Economic Development and Commerce (DDEC) http://ddec.pr.gov/es/ http://businessinpuertorico.com/en/ Rums of Puerto Rico http://www.itsrumtime.com Puerto Rico Tourism Company http://www.seepuertorico.com/ Puerto Rico Trade and Export Company http://www.comercioyexportacion.com/ 19

20. Appendixes: 20