1

STATEMENT OF INTEREST OF THE UNSOLICITIED PROPOSAL CALLED

"PERSONAL ELECTRONIC SURVEILLANCE (ELECTRONIC BRACELETS)" SUBMITTED BY CONSORCIO GLOBAL SEGURIDAD

This is an unofficial translation. In case of divergence between the English and Spanish text, the version in Spanish shall

prevail. The PROINVERSION’s Committee on Infrastructure Projects and Social Public Service, Mining, Sanitation, Irrigation and Agricultural Affairs – PRO DESARROLLO through Agreement N° 313-2-2015, adopted at meeting dated 27.Aug.2015, agreed to declare of interest the Project included in the Unsolicited Proposal called "Personal Electronic Surveillance (Electronic Bracelets)" (hereinafter, the Unsolicited Proposal), presented by CONSORCIO GLOBAL SEGURIDAD, composed by the companies: Global Seguridad del Perú E.I.R.L., Global Circuit Ltda. and Infopyme Comunicaciones, S.L. (hereinafter, the Proponent), according to the provisions of Legislative Decree N° 1012, Framework Law on Public-Private Partnerships for the generation of productive employment and lays down rules for speeding up the process of promoting private investment and amendments, and its Regulations approved by Supreme Decree N° 127-2014-EF. In accordance with the provisions of Article 16° of Legislative Decree N° 1012, Third Parties interested in the Project may submit their interest to PROINVERSIÓN within ninety (90) calendar days from the day following the publication of this Statement of Interest. In the absence of Third Parties interested in implementing the Project within the above timeframe, procedures for direct award will be carried out. For purposes of this Statement of Interest, Project shall mean the investment Project contained in the Unsolicited Proposal called "Personal Electronic Surveillance (Electronics Bracelets)". Studies and statistics used as the basis of this Statement of Interest have referential nature and, therefore, the Peruvian State does not guarantee its integrity. A. SUMMARY OF THE PROJECT Personal Electronic Surveillance was established by Law N° 29499, promulgated on January 18th, 2010, as a control mechanism which aims to monitor the movement of both defendants and convicts, either as an alternative restriction subpoena, a type of penalty or a monitoring mechanism in accordance with the provisions of the Law, for offenses with penalties of no more than six years. For the Penitentiary System, the implementation of the Personal Electronic Surveillance will allow the treatment of inmates (process of rehabilitation and reintegration) that is provided in prisons, especially those that are overcrowded, experience an improvement in terms of coverage and efficiency. As a second effect, will allow the Police to release personnel that currently are assigned to monitor people in homes, clinics, etc., which will result in the reallocation of them to improve public safety. Finally, it will avoid the criminogenic contagion of those who get access to from

2

accessing the Personal Electronic Surveillance, which harmonizes with the recognition of the guarantee of the presumption of innocence. For these reasons, the Peruvian State through the Ministry of Justice and Human Rights and the National Penitentiary Institute as government agencies responsible for the criminal policies and enforcement, expressed the importance of the implementation of the Project of Personal Electronic Surveillance, on the understanding that operation will contribute to the modernization of the Penitentiary System. 1. Purpose and Scope of the Investment Project 1.1. Purpose of the Project The project aims at the implementation, operation and maintenance of Personal Electronic Surveillance, according to the provisions of Law N° 29499, which establishes the Personal Electronic Surveillance and its Regulations approved by Supreme Decree N° 013-2010-JUS and amended by Supreme Decree N° 002-2015-JUS (hereinafter the Regulation). The Contractor shall implement, operate and maintain a system that allows providing Personal Electronic Surveillance, meeting the quality parameters established. 1.2. Scope of the Project The implementation of the Electronic Surveillance by the Contractor, commissioned by the Ministry of Justice and Human Rights (MINJUS) and the National Penitentiary Institute (INPE), in the framework of an Atypical and Unnamed Contract of Personal Electronic Surveillance, is turnkey. That is, the Contractor shall consider supplying all the necessary components for the development of their activities. Through the Contract, the Peruvian Government will grant to the Contractor the exclusive operation of the Personal Electronic Surveillance, for a period of ten (10) years, in the judicial district of Lima, created by Organic Law of the Judiciary, and in all judicial districts in which it has been decentralized or later deconcentrated, and Callao, leaving at the Peruvian State's decision to extend it to other judicial districts of the country, under the rules applicable. If given this extension, the Contractor shall assume the costs and risks of additional monitoring devices for such extension and take the necessary measures for the timely implementation under the terms established in the Contract and addenda. According to the provisions of Law N° 29499, which establishes the Personal Electronic Surveillance and its Regulation, its main features are:

The Beneficiaries of Personal Electronic Surveillance will be people who, having the legal status of accused or convicted, are included within the scope of Law N° 29499, Personal Electronic Surveillance Law and its Regulation.

Monitoring of Beneficiaries of Personal Electronic Surveillance will take place in

the categories of: (i) restriction on the perimeter of domicile and (ii) restricted transit. In the first case, the Personal Electronic Surveillance is configured considering as free transit space the house perimeter within the Beneficiary is authorized to move; if the Beneficiary leaves the perimeter, it should be detected immediately and an alarm generated in the Monitoring Centers. In the second case, the Personal Electronic Surveillance is configured with option of restricted transit in a specific geographical area including the authorized

3

domicile, as well as routes and itineraries: health facilities, research centers, workplaces or other places that have previously programmed and authorized by the Judge; if there is displacement in unauthorized places or times, it must be detected immediately and an alarm generated in the Monitoring Centers.

Also, when the Personal Electronic Surveillance loses connectivity with the

Monitoring Center, when the touch sensor is disconnected or cut the strap of the device when the shock sensor is activated, or when the device indicates low battery. It must be detected immediately and an alarm generated in the Monitoring Centers.

In this regard, the Contractor shall provide the necessary infrastructure to implement the Personal Electronic Surveillance, fulfil the following features:

Making technical verification and reporting. Installing Personal Electronics Surveillance Device. Daily lease for the use of the Personal Electronics Surveillance Device. Monitoring

o Location of a person using a global positioning system (GPS). o Retransmission of location using the public mobile telecommunications

services. o Storage of such location on a computer system. o Processing of information retransmitted in Monitoring Centers. o Friendly presentation and storage of the processed information for timely

and efficient decision-making. o Ensure security of information managed in the Data Centers and the

continuity of the System. o Maintenance of Personal Electronic Surveillance Devices, including the

replacement by any malfunctioning of its internal components, through the expiry of the life of the device or by accident.

Uninstall the Personal Electronic Surveillance Device 1.3. General aspects 1.3.1. Demand

The Contractor shall perform the sizing of the Personal Electronic Surveillance System proposed, based on its own estimates of demand. As such, it assumes the risk of demand. In the event there is a distinct demand that initially projected, it will be assumed entirely by the Contractor and make the adjustments and investments required to address it at their own expense and risk.

1.3.2. Conducting technical verification and reporting

The Contractor shall perform the technical verification to the Beneficiary domicile (in case of electronic surveillance restricted to the perimeter of the domicile) or authorized places by the Judge (in case of restricted transit), and must then inform the level of risk at the access and compliance of the minimum technical requirements for the proper implementation of the Personal Electronic Surveillance. After the technical verification, the Field Team shall report to the Monitoring Center, which shall forward the information to the appropriate authorities who

4

needs to know the technical feasibility for the implementation of the Personal Electronic Surveillance.

The Contractor is responsible for supplying the equipment, transportation and personnel necessary to carry out technical inspections and reports as may be required by INPE. Must verify that the restricted transit areas or the perimeter of the domicile are physically accessible, the availability of mobile phone service both voice and data, satellite signal with sufficient strength and that has electrical service for recharging the Personal Electronic Surveillance Device. The Contractor is obliged to perform the technical verification and reporting at business hours as established by the INPE.

1.3.3. Installation and Removal of the Personal Electronic Surveillance Device

The installation and removal of Personal Electronic Surveillance Devices will be borne by the Contractor and shall be conducted in accordance with the provisions of Law N° 29499 and its Regulations. In installation and removal, the Contractor shall record the Beneficiary verifying his identity, ensuring the proper functioning of the Personal Electronic Surveillance Devices and training to the Beneficiary in handling and care of it. This record is stored in the Monitoring Center.

The Contractor is responsible for the supply of equipment, transport and personnel necessary to perform installations and removals that are required by the INPE. The Contractor is obliged to install and uninstall Personal Electronic Surveillance Devices at business hours as established by the INPE.

1.3.4. Monitoring

The Contractor is responsible for providing all logistic material required for their operational, technical and administrative personnel as well as the operation of the Main and Secondary Monitoring Centers, to ensure monitoring of Personal Electronic Surveillance Devices, all days a year, 24 hours a day.

1.3.5. Lease of the Personal Electronic Surveillance Device

The Contractor shall assign to the Beneficiary the Personal Electronic Surveillance Device as lease.

1.3.6. Gratuity

The Contractor shall consider the free provision of Personal Electronic Surveillance (including Installation, Monitoring, Leasing of Personal Electronic Surveillance Device and Removal) to a number of Beneficiaries not less than three percent (3%) of Personal Electronic Surveillance Devices that provide annually.

5

The competent Peruvian State authority shall determine the Beneficiaries who shall be assigned the free provision of Personal Electronic Surveillance, which is referred to in the preceding paragraph.

1.3.7. Homologation of equipment

The Contractor is responsible for obtaining permits and approvals of equipment that required it.

1.3.8. Accidents

It is the Beneficiary's responsibility to safeguard the Personal Electronic Surveillance Device as required by the Regulation of Law N° 29499. If the device is wrecked, the Beneficiary shall assume the cost of its replacement, being under risk of the Contractor charging such replacement.

1.3.9. System introduction program

The Contractor is responsible for performing a training program for INPE and MINJUS trainers, who would be responsible for providing and disseminating Personal Electronic Surveillance. This training will be held in Lima City during the first three months of operation of the System and is aimed at the following profiles:

Judges and Prosecutors. Officials and personnel of INPE. Scrutineering personnel. Installation / removal personnel.

Training will include written material to study, consultation procedures and reference material by virtual means.

1.4. Personal Electronic Surveillance System components The Personal Electronic Surveillance System will consist of the following components:

Personal Electronic Surveillance Devices. Monitoring Centers. Data Centers. Monitoring Software. Technical Support Centers. Field Teams.

1.4.1. Supply of human resources, material resources and equipment

All material and equipment required for the Personal Electronic Surveillance System must be new and newly manufactured (no more than two (02) years of manufacture). It is the responsibility of the Contractor to hire the qualified human resources needed for proper implementation, operation and maintenance of the System, fulfilling the quality parameters established.

6

1.4.2. Personal Electronic Surveillance Device

The Personal Electronic Surveillance System uses people tracking technology through a satellite tracking device (bracelet, anklet or whatever applicable) which permanently informs the geographical position where the Beneficiary is to the Monitoring Centers. Henceforth, this satellite tracking device will be referred as Personal Device Electronic Surveillance. The Personal Electronic Surveillance Device must provide the Beneficiary's position using as the primary system the Global Positioning System (GPS) and as secondary system –when the GPS is not available- the Location-Based Service (LBS). The LBS is the location capability based on the signal strength of the adjacent cell sites to the position of the Beneficiary.

Also, the Personal Electronic Surveillance Device should make use of the mobile telephone network GSM/GPRS for routing information of the position of the device to the servers of Data Centers. It must be possible to configure the number of times the device report to the Monitoring Centers, either locally in the same device or remotely by sending instructions from Monitoring Centers through the air interface. The Personal Electronic Surveillance Device must meet the following minimum requirements:

1. Minimum autonomy of the battery not less than 20 hours, in the case of

Personal Electronic Surveillance Device working in active mode and being reported at least every 30 minutes to the Monitoring Center. The Personal Electronic Surveillance Device should issue an alarm signal indicating the low battery level.

2. Accuracy of no more than 10 meters in the referral of the position to the

Monitoring Center, in open field conditions. 3. Compatible with the sim cards of at least two mobile companies

operating in Peru. 4. Support of GSM / GPRS bands used in Peru 850/900/1900 MHz.

5. Ability to be reconfigured locally and/or remotely using the radio

interface (GSM/GPRS signal). This capability should include modifying the reporting period of the Personal Electronic Surveillance Device toward the Monitoring Center up to a periodicity of two (02) minutes. In this case, does not apply the provisions of paragraph 1 with respect to the time of minimum battery life.

Monitoring Software must issue a warning signal when there is no signal connectivity to the Personal Electronic Surveillance Device.

6. Ability to define virtual fences:

a. In case of restriction to the perimeter of domicile, the Personal

Electronic Surveillance Device must issue an alarm signal to the

7

Monitoring Center when the device is outside the boundaries of the domicile.

b. In case of restricted transit, the Personal Electronic Surveillance Device should issue an alarm signal to the Monitoring Center when the device is approaching restricted areas.

c. In case of restricted transit, the Personal Electronic Surveillance

Device should be able to alert the user (Beneficiary of the Personal Electronic Surveillance) with an alarm signal when the device is at a distance of 30 meters from the restricted zones.

d. In case of restricted transit, the Personal Electronic Surveillance

Device should issue an alarm to the Monitoring Center when the device is not within the authorized transit area or areas (such as health facilities, school, or workplace or other areas authorized by Judge).

7. Capacity of tamper detection, removal and shock sensor.

The Personal Electronic Surveillance Device should issue an alarm signal to the Monitoring Center when attempting to manipulate, damage, remove or break the device.

8. Lightweight, antiallergic and waterproof material. 9. Ability to log data to register thousands of points of interest and events.

10. Ability to report emergencies through a panic button or making a call to a

pre-defined number (MOC – Mobile Originated Call) from the Personal Electronic Surveillance Device, or both.

11. Support function of receiving call (MTC – Mobile Terminated Call) from

Monitoring Center.

The Personal Electronic Surveillance Devices can be reused during their lifetime, according to the manufacturer's recommendations

1.4.3. Monitoring Centers

Monitoring Centers are the base of technical infrastructure where all the information of the Personal Electronic Surveillance System is stored. Inside these facilities are the people who will be responsible for handling alerts generated by Beneficiaries who violate the conditions of supervision. The Contractor is responsible for the implementation of two (02) Monitoring Centers: a Main Monitoring Center to be located in Lima City and a Secondary Monitoring Center to be located in another region of the country, with different seismic characteristics to Lima City.

For the operation of the Main and Secondary Monitoring Centers, the Contractor must consider the appropriate and necessary physical and human resources for this purpose.

8

The Main and Secondary Monitoring Centers should have the same infrastructure. The Secondary Monitoring Center will be able to manage the same information as the Main.

The System must be able to change the operation between Monitoring Centers in the shortest possible time, ensuring the communication of all Personal Electronic Surveillance Devices. The Contractor is responsible for the design, implementation and operation of the necessary subsystems that enable the proper functioning of the Monitoring Centers, such as backup power (rectifiers, generators, UPS), protective elements (ground wells, lightning arresters); air conditioning, lighting, fire detection and suppression; access control; among others, that allow for proper system operation.

In addition, the Contractor is responsible for hiring the necessary communication channels (fax, electronic mail, mobile telephony, fixed telephony, SMS, Internet) to enable communication of the Monitoring Centers with Personal Electronic Surveillance Devices and the transmission of information to the competent authorities in accordance with the provisions of the rules and protocols to be agreed with the INPE. Main and Secondary Monitoring Centers should be able to:

a. Monitor the Beneficiaries under the two types of Personal Electronic

Surveillance modalities: restriction to the perimeter of the domicile and with restricted transit.

b. Ensure that monitoring is offered continuously 24 hours a day, 7 days a

week, every day of the year. c. Ensure that once the alarms are generated from the Personal Electronic

Surveillance Device, such alarms will be displayed and reported timely in the Monitoring Centers, according to the quality indicators and Protocols.

d. Process and report alarms from the Personal Electronic Surveillance

Device to the Monitoring Centers according to protocols established by the competent authorities.

e. Display in the screens of the Monitoring Centers each Personal

Electronic Surveillance Device after activation and authorized deactivation.

f. Ensure the security, availability and confidentiality of user information

(Beneficiaries of Personal Electronic Surveillance) who use the Personal Electronic Surveillance Device.

g. Store the video recordings of activities in the Monitoring Centers for a

period not less than sixty (60) days. After this period, the information will be delivered to INPE.

h. Store the audio recordings of voice communications originated from the

Monitoring Centers to users (Beneficiaries of Personal Electronic Surveillance) for a period not less than sixty (60) days. After this period, the information will be delivered to INPE.

9

i. Store the information generated by the Personal Electronic Surveillance

Device in the Monitoring Centers for a period not less than sixty (60) days. After this period, the information will be delivered to INPE.

Personnel required

It is the responsibility of the Contractor to hire the operating, technical and administrative personnel necessary. At least it will be accepted:

Main Monitoring Center: one (01) Agent per each 200 Personal

Electronic Surveillance Devices in operation and (01) Supervisor for every five (05) Agents, for 24 hours a day.

Secondary Monitoring Center: fifty percent (50%) of the capacity of the Main Monitoring Center. If Monitoring Center Principal ceases the operation for an extended time, the Secondary Monitoring Center must increase its capacity to meet the necessary personnel as the Main Monitoring Center.

From the standpoint of physical resources, the Contractor shall begin with the necessary stations equipped to monitor 2,000 Personal Electronic Surveillance Devices in the Main Monitoring Center and the amount corresponding to the Secondary Monitoring Center.

Communications systems – Internet for Monitoring Centers

For backhaul to Internet of Monitoring Centers, as a contingency measure, it must have at least two dedicated transmission media (1:1) physical optics, contracted with different telecommunications companies.

Communications systems – Interconnection between Monitoring Centers

Since Peru is located in a high seismic activity area, Contractor shall consider and ensure with telecom operators that the Contractor shall select for the Project, the availability of not only of active alternate routes of communication at national level, but also of means of redundancy at local access network level (at the region level) in case of contingencies, to ensure the operability and continuity of Personal Electronic Surveillance System.

Remote access to INPE

The Contractor shall provide remote access to INPE to the Monitoring Software for viewing and reporting. Both parties shall take measures to ensure the security of this information.

1.4.4. Data Centers

Data Centers (servers that store information generated from Personal Electronic Surveillance Devices, video and audio recordings as well as the infrastructure that supports it) of the Main and Secondary Monitoring Centers must be used exclusively by the Contractor, must be located in Peru and must be in a non-shared environment.

10

Data centers must have the levels of safety and security for storage of information. That is, the Contractor shall ensure the necessary security information to ensure the confidentiality of information (firewalls, intrusion detection, antivirus, etc.).

The Contractor shall ensure physical and logical safety measures to ensure the integrity and authenticity of the information and prevent any removal, modification, destruction or theft of information of the Personal Electronic Surveillance System, during storage and/or when the information is sent to the INPE.

1.4.5. Monitoring Software

The Monitoring Software must generate all the information and permanent reports requested by Law N° 29499 and its Regulation, and other necessary for the technical operation and the statistical reports to be agreed with the INPE and MINJUS. The reports include those requested by Prosecutors and Judges regarding the behavior of the Beneficiaries. The Monitoring Software receives, stores and processes information from Personal Electronic Monitoring Devices. This software will be in the Data Centers of the Monitoring Centers.

The Monitoring Software must have the following minimum characteristics:

a. Automatic report to the Judge about the successful installation of a

Personal Electronic Surveillance Device. b. Allows to Judges manage the booking of the Personal Electronic

Devices, the application process and dispatch.

c. Access via web for Judges and Prosecutors who want to check the behavior of the Beneficiary; on the other hand, if the Judge or competent authority so requests, the software generates automatically written report and sends it to the Judge in PDF format to avoid any change.

d. All reports can be sent to any email automatically without human

intervention.

The Monitoring Software should be able to:

a. Notify the personnel at the Monitoring Center and the authorities concerned (as determined in Law N° 29499 and its Regulations) concurrently through different media such as email, SMS, etc., in case of alarm event.

b. Provide the personnel of the Monitoring Center and the authorities concerned (as determined in Law N° 29499 and its Regulation), information about the itinerary (routes and schedules) followed by users (Beneficiaries of Personal Electronic Surveillance) with transit restricted.

c. Ensuring the integrity of the information, to avoid any type of deletion,

modification, destruction or theft of information from the Personal Electronic Surveillance System.

11

d. Allocate access levels to the Monitoring Center personnel and the authorities concerned (as determined in Law N° 29499 and its Regulations), according to the established hierarchies, to access the Monitoring Software and user information (Beneficiaries of Personal Electronic Surveillance).

e. Support the monitoring of Personal Electronic Surveillance Devices.

f. Generate customized reports for decision-making by the authorities so

require, either in real time or historical.

Mapping to be used by the Monitoring Software

a. Monitoring Software must have adequate and updated GIS (Geographic Information System) maps, to allow operators Monitoring Centers monitor users (Beneficiaries of Personal Electronic Surveillance).

b. The GIS maps should be capable of zooming at numbering level of

domiciles, for monitoring the Beneficiaries of Personal Electronic Surveillance restricted to the scope of their domiciles; and zooming at numbering streets, for monitoring the Beneficiaries of Personal Electronic Surveillance with restricted transit.

c. The Monitoring Software should allow the creation of zones of any

shape without any restriction (polygons).

The Monitoring Software must have audit trails to allow verification of changes or cancellations that occur within the system.

1.4.6. Technical Support Center

The Contractor is responsible for the implementation of a Technical Support Center, which will have the ability to receive alerts generated from Personal Electronic Surveillance Devices and generated by the System, and analyze if they were processed by the Monitoring Center. Also, Technical Support Center will provide and coordinate technical and engineering support of the Personal Electronics Surveillance System. The Contractor shall freely choose the location of the Technical Support Center, provided it complies with the following features:

1. Perform the supply, installation and removal of Personal Electronic

Surveillance Devices, times where will be required to verify the user's identity (Beneficiary of the Personal Electronic Surveillance) and prevent impersonations; spare parts management, software updates, materials, services and other elements necessary for the proper functioning of the Personal Electronic Surveillance.

2. Perform the necessary technical feasibility verifications within the

timeframe set in the Contract, in order provide a successful installation of the Personal Electronics Surveillance Devices in the Beneficiaries.

3. Conduct a training plan for agents designated at field work.

12

4. Perform preventive maintenance (according to the manufacturer's recommendations), and restoration of Personal Electronic Surveillance Devices, ensuring continuous service without interruptions. Should keep track of the activities with detailed records.

5. Replace the equipment with manufacturing defects or malfunction, by

other with same characteristics, without implying economic damage to the Beneficiary of the Personal Electronic Surveillance.

6. Have permanent availability of equipment, spare parts and accessories

needed to satisfy the demand of Personal Electronic Surveillance Devices.

7. Consider the rotation of Personal Electronic Surveillance Devices in a

way that ensures the reinstatements ordered by the competent authorities.

Activities under paragraphs 4 and 5 above shall not generate any payment of the Beneficiaries.

1.4.7. Field Team

It is the group of people dependent on the Technical Support Center, responsible for the following activities outside it:

a. Preparation of the site survey where the Beneficiary lives in order to

verify if it meets the technical conditions necessary for the proper functioning.

b. Installation of the Personal Electronic Surveillance Device in the domicile of the Beneficiary, with fingerprinting for identity verification and assurance of operation.

c. Reviewing and changing defective or vandalized equipment.

d. Random check to verify the identity of the person with fingerprint.

e. Uninstall Personal Electronic Surveillance Device Monitoring by Judge

order. 1.4.8. Other technical features of the operation

1. Perform a compliance test of the Personal Electronic Surveillance System in order to verify the offered technological solution. A technical certificate of conformity will be issued.

2. Implement a Test Plan at the beginning of the contract to refine the operational procedures with the judicial and police authorities to ensure the operation of the Personal Electronic Surveillance System. A certificate of conformity of operational procedures will be issued.

The competent authorities are responsible for the selection of beneficiaries.

1.5. Prices

13

The reference prices of the Project are:

Chart Nº 1. Reference prices of the Project Item Periodicity Price (S/.)

(VAT not included) Technical verification Single payment 187.80 Installation Single payment 93.90 Monitoring Daily 12.52 Leasing of the Personal Electronic Surveillance Device

Daily 6.26

Removal Single payment 93.90 The Beneficiary shall assume the costs of each of the prices according to the frequency indicated in the lease contract concluded with the Contractor. The cost of the technical verification will be payed directly by the applicant of the benefit previously to the signing of the lease contract. The Contractor assumes the risk of collection of prices to Beneficiaries. The prices will be adjusted annually by the annual change in the Consumer Price Index (CPI) for Metropolitan Lima. Such adjustment shall be made according to what is designated in the respective Contract. 2. Property and/or utilities upon which the Project will be developed The Project involves the implementation, operation and maintenance of the Personal Electronic Surveillance. No property regime applies to this Project. 3. Type of contract and Contract term The modality of private sector participation will be through an Atypical and Unnamed Contract Personal Electronics Surveillance. The Contract term is ten (10) years. 4. Reference amount of investment According to the assessment made by PROINVERSIÓN, the reference amount of investment is USD 9 204 390.00 (Nine Millions Two Hundred Four Thousands Three Hundred Ninety and 00/100 US Dollars), not including VAT. 5. Tentative Schedule of Investment Project Chart N° 2 shows the Tentative Schedule to execute the investment Project. The specific Schedule will be negotiated in the Contract, according to Chart N° 2. The Contractor shall request the MINJUS the start of the tests within a maximum of one (01) business days after having completed the installation of the System. Breach of this action will be considered as infringement and will lead to the application of penalties.

14

Chart Nº 2. Project implementation schedule

Nº Description Term 1 Installation term Three (03) months from the signing of the Contract

2 Operation start-up First day of the fourth month, counted from the date of signing of the Contract

3 Tests One (01) month from the date of the coming into operation

4 Service start-up First day of the fifth month, counted from the date of signing the contract

6. Method of payment proposed The Unsolicited Proposal presented by the Proponent and the assessment by PROINVERSIÓN, have determined that the Project is self-sustaining. That is, it complies with the provisions of subparagraph a) of Article 4° of Legislative Decree N° 1012. In this regard, the Contractor will not receive any remuneration or any financial compensation from the Peruvian State, nor require financial and non-financial guarantees. The Project will be self-financed with the earnings that comes from payments of the Personal Electronic Surveillance, as provided by Regulation of Law N° 29499. B. QUALITY INDICATORS The quality indicators subject of this Statement of Interest is defined in the Contract and will be referred to the following:

a) Quality indicators referring to the notification of programmable alarms in Personal Electronic Surveillance Devices toward the Monitoring Centers.

b) Quality indicators referring to response times of Technical Support Center personnel in the event of failure of the Devices.

c) Quality indicators referring to response times of Monitoring Centers operating personnel in the event of alarms.

d) Quality indicators referring to the operation of Data Centers.

e) Other quality indicators to be defined in the Contract. Failure quality indicators will cause the imposition of contractual penalties, which shall be independent of the administrative penalties that may be applicable legally by competent administrative entities. The Contract will indicate the corresponding penalties. C. ESSENTIAL ELEMENTS OF DRAFT CONTRACT

a) Legal framework

15

Legislative Decree N° 1012 adopted the Framework Law on Public-Private Partnerships for the generation of productive employment and lays down rules for speeding up the process of promoting private investment and its amendments.

Supreme Decree N° 127-2014-EF, Regulations of Legislative Decree N° 1012, and amendments.

Directive N° 004-2009-PROINVERSIÓN, "Processing and Evaluation of Unsolicited Proposals on Investment Projects" approved by Agreement N° 278-01-2009 PROINVERSIÓN adopted at the Board of PROINVERSIÓN in its Session N° 278 dated 25 March 2009 and amendments.

Law N° 29499, Law establishing Personal Electronic Surveillance and adds Article 29-A and amends Article 52 of the Criminal Code, Legislative Decree N° 635, amending Articles 135 and 143 of the Criminal Procedure Code, Legislative Decree N° 638 and articles 50, 52, 55 and 56 of the Criminal Enforcement Code, Legislative Decree N° 654, and amendments.

Supreme Decree N° 013-2010-JUS, Regulations of Law N° 29499, as amended by Supreme Decree N° 002-2015-JUS.

Legislative Decree N° 635, which approved the Criminal Code, and amendments.

Legislative Decree N° 638, which approved the Criminal Procedure Code, and amendments.

Legislative Decree N° 957, which approved the new Criminal Procedure Code, and amendments.

Legislative Decree N° 654, which approved the Criminal Procedure Code, and amendments.

The rules issued by the Executive Branch before the award.

b) Purpose

The project aims at the implementation, operation and maintenance of the Personal Electronic Surveillance, using electronic tracking devices for people who, having the legal status of accused or convicted, are included within the scope of Law N° 29499, Law establishing Personal Electronic Surveillance and its Regulation approved by Supreme Decree N° 013-2010-JUS and its amendment, in the judicial district of Lima, created by Organic Law of the Judiciary, and in all judicial districts it has been decentralized or later deconcentration, and Callao.

c) Type of contract

Atypical and Unnamed Contract for Personal Electronic Surveillance; this contract will include the essential elements governing bilateral contractual relationship between the Beneficiary and the Contractor.

d) Term

The contract term is ten (10) years.

e) Contracting parties

The Contracting party shall be the Peruvian State, represented by the MINJUS, involving INPE to take those rights and obligations under the

16

agreement. The Contractor shall be the Special Purpose Company which will be the winner of the Award for signing the corresponding Contract. The Contractor shall constitute a Special Purpose Company that will execute the Project, so its purpose will be special and unique. This Special Purpose Company will be established with a registered capital of no less than USD 1 380 659.00 (One Million Three Hundred Eighty Thousands Six Hundred Fifty-Nine and 00/100 US Dollars).

f) Strategic Partnership and Participation

There must be a Strategic Partner, who will be the legal entity, shareholder of the Contractor, which certifies compliance with the operation requirements and holds an ownership of the Minimum Participation. The Minimum Participation of Strategic Partner regarding the share capital of the Contractor shall be twenty-five (25%) of the capital, to be held for at least the first five (05) years of the term of the Contract. In case that, after that period, there is a new strategic partner, it must meet the same requirements as its predecessor has.

g) Price regime and adjustment mechanism

Prices of Personal Electronic Surveillance will be adjusted annually by the annual change in the CPI of Metropolitan Lima. Such adjustment shall be made according to what is designated in the respective Contract.

h) Obligations of the Contractor under the Contract

The Contractor undertakes to provide the Personal Electronics

Surveillance, in accordance with the provisions of Law N° 29499, Law that establishes the Personal Electronic Surveillance and its Regulation, to Beneficiaries, prosecution or conviction, in the judicial district of Lima, created by Organic Law of the Judiciary, and in all judicial districts in which it has been decentralized or later deconcentrates, and Callao, for a period of ten (10) years.

The equipment and devices for Personal Electronic Surveillance and

monitoring thereof, in their modality of restriction to the perimeter of the domicile or restricted transit will be provided by the Contractor in accordance with the conditions arranged in this Statement of Interest and in the Contract. The Contractor will retain ownership of the equipment and devices, even after the term of the Contract is completed.

The Contractor shall provide equipment and infrastructure necessary to

provide the Personal Electronic Surveillance, in order to fulfill the functions of conducting technical verification and reporting, device installation of Personal Electronic Surveillance, daily lease for the use of the Personal Electronic Surveillance Device and monitoring.

The Contractor is responsible for the supply of equipment, transport and

personnel necessary to perform installations and removals that are required by INPE and is also responsible for providing all logistic

17

material required by its technical personnel, for the operation of the Monitoring Centers, etc., to ensure monitoring of Personal Electronic Surveillance Devices.

The Contractor is responsible for the implementation and the structural

design of the two (2) Monitoring Centers, the Main one, which will be located in Lima City, and the Secondary one, in another region, with different seismic characteristics than the Main Monitoring Center, and must consider the appropriate and necessary physical and human resources for this purpose. The structural design shall be in accordance with international standards that will be validated by the INPE.

The Contractor is responsible for the implementation of a Technical

Support Center, which will provide technical support for the Devices. The Contractor shall freely choose the location of the Technical Support Center, provided it complies with the requirements.

The Contractor will ensure hiring the necessary communication

channels: fax, email, mobile telephony, fixed telephony, SMS, internet; allowing communication of the Monitoring Center with the Personal Electronic Surveillance Devices and transmission of information to the competent authorities in accordance with the provisions of the rules and protocols to be agreed with the INPE.

The Contractor shall ensure the security elements necessary to ensure

the confidentiality of information (firewalls, intrusion detection, antivirus Gateway, etc.)

The Contractor shall ensure the physical and logical measures against

events of force majeure to prevent any removal, modification, destruction or theft of information Personal Electronic Surveillance System.

The Contractor assumes the risk of the demand and in the event that

there is a different demand than the projected initially, it will be assumed entirely by the Contractor and make the adjustments and investments required to address it at their own expense and risk.

The Contractor shall consider the free provision of Personal Electronic

Surveillance to a number of beneficiaries not less than three percent (3%) of Personal Electronic Surveillance Devices, calculated on the basis of new registrations. The competent Peruvian State authority shall determine the Beneficiaries of the free provision of Personal Electronic Surveillance.

The Contractor is responsible for conducting a training program aimed at

trainers of INPE and MINJUS, who will then teach and spread the Personal Electronic Surveillance System. This training will be held in Lima during the first three months of operation of the system and is aimed at Judges and Prosecutors, INPE officials and personnel, technical verification personnel, and install/uninstall personnel.

18

The Contractor shall comply with the quality indicators of services to be defined in the Contract on the issues identified in this Statement of Interest.

The Contractor shall comply with the continuous and uninterrupted

operation of the Personal Electronic Surveillance.

The Contractor shall be responsible for any claim, complaint or lawsuit that could lead to the development of its activities, misuse of equipment and the deployed systems.

The Contractor agrees to pay to PROINVERSIÓN the expenses that it

has incurred to carry out the promotion process and award of the Project. To this effect, PROINVERSIÓN will communicate by Circular, the amount, form and term payment to be made.

Except for those cases in which it is established in the Statement of

Interest as responsibility for the Contracting party or any of its agencies, the Contractor assumes its own costs and risks associated with the development of various activities that will be established in the Contract. Events of Force Majeure shall not entail any payment from the Peruvian State.

Other established in the Contract in accordance with the Private Sector

and the Statement of Interest.

i) Effective date of obligations

The Contractor shall be required to comply with contractual obligations from the signature of the Contract.

j) Financial-Economic Balance

The contract will provide the mechanism for restoring economic and financial balance, which both contractual parties have rights, if the object of the Contract is affected exclusive and explicitly due to changes in laws and regulations, as have exclusive relationship to economic and financial aspects of the Contract and its annexes, and with the exceptions in the same Contract. The restoration of financial balance will not cause cost to the Peruvian State.

k) Insurance regime

The Contractor shall provide and maintain during the pre-operation and operation of Personal Electronic Surveillance System at least the following insurance:

Insurance against all risks by accident or force majeure. Personal Insurance and Complementary Insurance for Hazardous Work

-SCTR covering a minimum coverage of employees of the Contractor and its subcontractors, if any, employed according to applicable laws and regulations.

TORT Liability Insurance, covering the risks of its operation. Insurance risk for theft, accidental damage and electrical or mechanical

installations and equipment failures.

19

Contractual Liability Insurance. Employers Liability Insurance. Cross Liability Insurance

The Contracting party is released from liability for any fact that might occur to the Contractor´s personnel also from any other responsibility for the pre-operation and operation of the Contract.

l) Contract supervision

INPE is responsible for, by the Contracting party, to implement technical and operative actions aimed at controlling, verifying, supervising and monitoring the compliance with the contractual obligations of the Contractor; thus, under its budget. For its part, the MINJUS, in his capacity as Contracting, shall implement the actions of administrative and contractual enforcement and other established in the Contract. The conditions under which such actions are implemented will be defined in the Contract.

m) Non-compliance and Penalties

The contract will contain a table typing penalties applicable to non-compliance of the quality indicators and other contractual obligations that apply. These contractual penalties shall be independent of the administrative penalties that may be applied by competent administrative entities under their laws.

n) Expiration of the contract

The contract will expire by:

Deadline of the Contract. Mutual agreement. Failure of the Contractor. Failure of the Contracting party. Contracting unilateral decision. Force majeure or unforeseeable circumstances. Other grounds established in the Contract

In case of default of the Contractor to cover the additional demand that can be generated within a period of three (3) months, the contract will expire. In all cases of forfeiture, the Contractor shall continue the operation by the deadline required by the Employer, which shall not exceed six (6) months from the expiration of the contract, to ensure the continuity of the Personal Electronic Surveillance.

In cases of termination of the Contract on grounds attributable to the Contractor, the State will not make any payment, shall execute the Performance Bond Contract as compensation for damages, without prejudice the penalties applicable to infringements.

o) Governing Law and Dispute settlement

The Contract shall be governed by and construed in accordance with the rules of the Legal Framework mentioned in paragraph a) of this Section C, which

20

the parties shall submit the content, execution, conflicts, disputes and defining other consequences of the contract. The Contractor and its partners, shareholders or participants expressly waive unconditionally and irrevocably to any diplomatic claim for controversies or conflicts that may arise from the Contract.

Conflicts, uncertainties or disputes, with technical and / or legal relevance that may arise regarding the interpretation, execution, compliance, and any aspect relating to the existence, validity or effectiveness of the Contract, or its resolution should try to be resolved, first, by way of direct negotiation in which they may agree to the intervention of a neutral third party called Conciliator or they may agree to submit their dispute to a Dispute Resolution Board. Failure to find a solution by this means, conflicts, uncertainties or disputes are submitted to arbitration, through a procedure conducted in accordance with the Rules of Conciliation and Arbitration of the Arbitration Center of the Lima Chamber of Commerce, being supplementary application, first Legislative Decree N° 1071 which regulates arbitration, and after the Civil Procedural Code of Peru.

In the case of discrepancy between the documents that form part of the Contract, the following order of precedence of the obligations of the parties shall be respected:

The Contract, including its annexes Technical and Economic Proposal, if any Terms and Conditions and Circulars, if any The Statement of Interest The Unsolicited Proposal

p) Reimbursement of Process expenses

The Awardee shall reimburse PROINVERSION, on the date of signing the Contract, the preparatory costs of the proceedings, the final settlement will be communicated in due course.

D. PERFORMANCE BOND OF CONTRACTUAL OBLIGATIONS The Contractor will be required the following performance bond:

a) Letter of guarantee for US$ 920 439.00 (Nine Hundred Twenty Thousand Four Hundred Thirty Nine and 00/100 US Dollars) in force since the signing of the Contract until the end of it.

This Performance Bond of the Contract will support the fulfillment of all obligations of the Contract. It will also guarantee payment of penalties and other charges under the Contract. E. PRE-QUALIFICATION REQUIREMENTS OF PUBLIC BID Interested parties must meet the following requirements of prequalification to participate in the bid:

21

a) Legal

Being a Consortium or legal entity, proving the powers and / or faculties of the legal representative. In case of consortia, each of its members must comply with these requirements.

b) Operational

They must prove experience in Peru or abroad, for at least two (02) years in tracking service of people or cargo, with a minimum of 8,000 tracked units. This experience shall be given directly by the bidder, a member of the Consortium member or a related company.

c) Financial

To prove having a minimum net worth of S/. 5'835,607.00 (Five Millions Eight Hundred Thirty-Five Thousand Six Hundred Seven and 00/100 Nuevos Soles) or its equivalent in foreign currency. This requirement may be satisfied by adding the net assets of each of the companies comprising the Consortium or through a company linked to the participant. For this purpose must be submitted at least audited financial statements for the last three accounting periods.

F. COMPETITION FACTOR OF THE PUBLIC BID

They are: (i) the greatest discount regarding the reference prices of Section 1.5, which the Beneficiary will pay for Personal Electronic Surveillance and (ii) the highest percentage of Beneficiaries who will be providing free Personal Electronic Surveillance indicated in Section 1.3.6. G. MODEL OF LETTER OF STATEMENT OF INTEREST AND MODEL OF

LETTER OF GUARANTEE TO BE SUBMITTED BY THIRD PARTIES Third Parties Interested in the Project contained in the Unsolicited Proposal may express their interest within the deadline established by Law, by meeting the following requirements:

a) To submit a letter of Statement of Interest, according to model on Annex N° 1 of this Statement of Interest.

b) To submit a Bid Security of the Statement of Interest: letter of guarantee in favor of the Private Investment Promotion Agency (PROINVERSIÓN) in the amount of US$ 184 088.00 (One Hundred Eighty-Four Thousand Eighty-Eight and 00/100 US Dollars), according to model on Annex N° 3 of this Statement of Interest.

This guarantee must be valid until the signing of the respective Contract and shall be issued by one of the entities referred to in Annex N° 6 of this Declaration of Interest.

22

Third Parties Interested in an alternative project to the Project contained in the Unsolicited Proposal may express their interest within the deadline established by Law, by meeting the following requirements:

a) To present a new unsolicited proposal containing the alternative project, as provided by Article 16° of Legislative Decree N° 1012. This new proposal for private sector must comply with the provisions of Article 28° and 29° of Supreme Decree N° 127-2014-EF, Regulation of Legislative Decree N° 1012.

b) To submit a letter of Statement of Interest, according to model on Annex N° 2 of this Statement of Interest.

c) To submit a Bid Security for the Statement of Interest: letter of guarantee in

favor of the Private Investment Promotion Agency (PROINVERSIÓN) in the amount of US$ 184 088.00 (One Hundred Eighty-Four Thousand Eighty-Eight and 00/100 US Dollars), according to model on Annex N° 4 of this Statement of Interest.

This guarantee must be valid until the signing of the respective Contract and shall be issued by one of the entities referred to in Annex N° 6 of this Statement of Interest.

H. BID PROCEDURE IF THERE ARE OTHER INTERESTED PARTIES

The bid will consist of three (03) stages, through the system of three (03) envelopes:

Envelope N° 1: Credentials to prequalify Envelope N° 2: Technical Proposal Envelope N° 3: Financial Proposal

In the first prequalification stage, during the period to be established in the Schedule of the Tender Process to be called, prequalification requirements (technical, financial, legal or other) will be evaluated through the documentation required to be included in Envelope N° 1, as are considered necessary to proceed to the second stage of selection. After the prequalification, in the day indicated in the Schedule of the Tender, the pre-qualified bidders will be called for the submission of Envelopes N° 2 and N° 3 and for the opening of Envelope N° 2, which contains the required documentation for demonstrate the validity and accuracy of the information presented, the acceptance of the general conditions of the Contract, the guarantees to ensure the validity and effectiveness of the financial offer and technical proposal. During the period to be established in the Schedule of the Tender, documentation contained in Envelope N° 2 will be evaluated. Only qualified bidders whose technical proposals meet the minimum requirements and, therefore, have been declared technically suitable by the PROINVERSIÓN Committee, will proceed to the third stage of selection. In the third stage the opening of the Envelopes N° 3 of suitable bidders will be made, containing, among others, the financial proposal.

23

I. REIMBURSEMENT OF EXPENSES ACTUALLY MADE BY THE PROPONENT IN THE DEVELOPMENT OF THE UNSOLICITED PROPOSAL

In accordance with the provisions of Article 17° of Legislative Decree N° 1012, and Paragraph 33.1 of Article 33° of Supreme Decree N° 127-2014-EF, shall recognize to the Proponent, the amount of USD 34 000.00 (Thirty-Four Thousand and 00/100 US Dollars). It also states that expenses incurred in the development of Unsolicited Proposal will be assumed by the Awardee. Third Parties Interested, upon the presentation of their statement of interest, acknowledge and agree to run the reimbursement of expenses Proponent, as required by PROINVERSIÓN. ANNEXES TO THE STATEMENTOF INTEREST ANNEX Nº 1 - Model of Letter of Statement of Interest (on the same Project) ANNEX N° 2 - Model of Letter of Statement of Interest (on an alternative project) ANNEX Nº 3 - Model of Bid Security for the Statement of Interest (interested in the

same Project) ANNEX Nº 4 - Model of Bid Security for the Statement of Interest (interested in an

alternative project) ANNEX Nº 5 - Model of Letter of Guarantee (Proponent) ANNEX Nº 6 - Companies authorized to issue the letters of guarantee

24

ANNEX Nº 1

MODEL OF LETTER OF STATEMENT OF INTEREST (on the same Project)

Lima, Messrs, PROINVERSION’s Committee on Infrastructure Projects and Social Public Service, Mining, Sanitation, Irrigation and Agricultural Affairs – PRO DESARROLLO Av. Enrique Canaval Moreyra Nº 150, Piso 9 San Isidro.- Ref. : Project contained in the Unsolicited Proposal called "Personal Electronic

Surveillance (Electronic Bracelets)" Of our consideration: Through this letter ........................ (name of the company or consortium) represented by .................. .. ............... (name of legal representative), identified with ............... .................. (identity document and number), domiciled at ................... (address, district, department and/or equivalents and Country), state our strong interest in participating in the implementation of the project of reference. Therefore, in accordance with the provisions of Legislative Decree N° 1012 and its Regulation, and as stated in the Statement of the above mentioned Unsolicited Proposal, we attach the Letter of Guarantee N° .............................. issued by Bank ................... ........., amounting to US $ ............ Without any further. Sincerely, ……………………………………………… Name and signature of Legal Representative Name of the Legal Entity Address Phone E-mail

25

ANNEX Nº 2

MODEL OF LETTER OF STATEMENT OF INTEREST (on an alternative project)

Messrs, PROINVERSION’s Committee on Infrastructure Projects and Social Public Service, Mining, Sanitation, Irrigation and Agricultural Affairs – PRO DESARROLLO Av. Enrique Canaval Moreyra Nº 150, Piso 9 San Isidro.- Ref. : Project contained in the Unsolicited Proposal called "Personal Electronic

Surveillance (Electronic Bracelets)" Of our consideration: Through this ........................ (name of the company or consortium) represented by .................. .. ............... (name of legal representative), identified with ............... .................. (identity document and number), domiciled at ...................(Address, district, department and country or equivalents), we declare our strong interest to participate in the implementation of an alternative project instead of the reference, called "............... .. ....................." . Therefore, in accordance with the provisions of Legislative Decree N° 1012 and its Regulations, and as stated in the Statement of Interest, we attach the Letter of Guarantee N° .............................. issued by Bank ................... ........., amounting to US $ ............ Likewise, we comply with all required documents attached for the evaluation of our alternative unsolicited proposal, under the provisions of Article 29 of Supreme Decree N° 127-2014-EF, Regulations of Legislative Decree N° 1012. Without any further. Sincerely, ……………………………………………… Name and signature of Legal Representative Name of the Legal Entity Address Phone E-mail

26

ANNEX Nº 3

MODEL OF BID SECURITY FOR THE STATEMENT OF INTEREST (interested in

the same Project) Lima, Messrs, Private Investment Promotion Agency – PROINVERSIÓN Present.- Ref. : Project contained in the Unsolicited Proposal called "Personal Electronic

Surveillance (Electronic Bracelets)" Of our consideration: By this letter and upon request of our customers, Mr. .................., we set up this joint, irrevocable, unconditional, immediate execution without benefit of excussio deposit guarantee, up to the amount of USD 184 088.00 (One Hundred Eighty-Four Thousand Eighty Eight and 00/100 US Dollars), in favor of the Private Investment Promotion Agency - PROINVERSION to guarantee the seriousness of the letter of statement of interest and participation of our client in the selection process to be called for the implementation of the Investment Project contained in the Unsolicited Proposal called "Personal Electronic Surveillance (Electronic Bracelets)", declared of interest. This guarantee will be effective in case our client does not meet to present a valid financial proposal in the selection process, if awarded, it does not meet the requirements of PROINVERSIÓN to the Closing Date or not sign the respective Contract. To honor this guarantee, a simple request by the Executive Director of PROINVERSION, or his substitute, made through a notary public in our offices located at ..................... Any delay on our part to honor this guarantee will accrue an interest equivalent to LIBOR rate plus a margin (spread) of 3% interest. The LIBOR rate will set the daily Reuter cable received in Lima at 11:00 am, interest shall accrue from the date of the request to honor until the effective payment date. Our obligations under this Letter of Guarantee will not be affected by any dispute between you and our client. The validity of this Guarantee shall be from ………….and will start on ..................... ............... until .................. Note : The guarantee may be issued in the model of the bank, provided you include all

the above-mentioned conditions.

27

ANNEX Nº 4

MODEL OF BID SECURITY FOR THE STATEMENT OF INTEREST (interested in an

alternative project)

Lima, Messrs, Private Investment Promotion Agency – PROINVERSIÓN Present.- Ref. : Project contained in the Unsolicited Proposal called "Personal Electronic

Surveillance (Electronic bracelets)" Of our consideration: By this letter and upon request of our customers, Mr. .................., we set up this joint, irrevocable, unconditional, immediate execution without benefit of excussio deposit guarantee, up to the amount of USD 184 088.00 (One Hundred Eighty-Four Thousand Eighty Eight and 00/100 US Dollars), in favor of the Private Investment Promotion Agency - PROINVERSION to guarantee the seriousness of the letter of statement of interest and participation of our client in the alternative project and the signing of the corresponding contract by the latter, in case the alternative project will be declared preferred, declared of interest and not present third parties interested in implementing it and it is awarded directly to our customer. This guarantee will be effective if our client does not meet present valid financial proposal in the selection process or, if awarded, it does not meet the requirements of PROINVERSIÓN to the Closing Date or not sign the respective Contract. To honor this guarantee, a simple request by the Executive Director of PROINVERSION, or his substitute, made through a notary public in our offices located at ..................... Any delay on our part to honor it will accrue an interest equivalent to LIBOR rate plus a margin (spread) of 3% interest. The LIBOR rate will set the daily Reuter cable received in Lima at 11:00 am, interest shall accrue from the date of the request to honor until the effective payment date. Our obligations under this Letter of Guarantee will not be affected by any dispute between you and our client. The validity of this Bond shall be from ………… and will start on ..................... ............... until .................. Note : The guarantee may be issued in the model of the bank, provided you include all

the above-mentioned conditions.

28

ANNEX Nº 5

MODEL OF LETTER OF GUARANTEE (Proponent)

Lima, Messrs, Private Investment Promotion Agency – PROINVERSIÓN Present.- Ref. : Project contained in the Unsolicited Proposal called "Personal Electronic

Surveillance (Electronic bracelets)" Of our consideration: By this letter and upon request of our customers, Mr. .................., we set up this joint, irrevocable, unconditional, immediate execution without benefit of excussio deposit, up to the amount of USD 184 088.00 (One Hundred Eighty-Four Thousand Eighty Eight and 00/100 US Dollars), in favor of the Private Investment Promotion Agency - PROINVERSION to guarantee the subscription of the corresponding contract by our customer, if not interested parties appear for the implementation of the Unsolicited Proposal "Personal Electronic Surveillance (Electronic Bracelets)" and is to be awarded directly to the Proponent. This guarantee will be effective in the case our client does not meet the requirements for PROINVERSIÓN as of the date of signing the contract or not sign the same on the date indicated by PROINVERSIÓN. To honor this guarantee, a simple request by the Executive Director of PROINVERSION, or his substitute, made through a notary public in our offices located at ..................... Any delay on our part to honor it will accrue interest equivalent to LIBOR rate plus a margin (spread) of 3% interest. The LIBOR rate will set the daily Reuter cable received in Lima at 11:00 am, interest shall accrue from the date of the request to honor until the effective payment date. Our obligations under this Letter of Guarantee will not be affected by any dispute between you and our client. The validity of this Bond shall be from ……………….. and will start on ..................... ............... until .................. Note : The guarantee may be issued in the model of the bank, provided you include all

the above-mentioned conditions.

29

ANNEX Nº 6

COMPANIES AUTHORIZED TO ISSUE THE LETTERS OF GUARANTEE BANKS: Those companies defined under Law N° 26702, General Law of the Financial System and the Insurance System and Organic Law of the Banking and Insurance Superintendence (SBS) and who hold the minimum rating of CP-1, Category 1, CLA-1 or EQL-1 for short-term obligations; A for financial strength; and AA for long-term obligations under current regulations. INSURANCE COMPANIES: Those companies thus defined under Law N° 26702, General Law of the Financial System and the Insurance System and Organic Law of the Banking and Insurance Superintendence (SBS) and that have a minimum rating of A, in their financial strength emitted by at least two (2) rating agencies authorized by the Superintendency of Securities. FIRST CATEGORY FOREIGN BANKS: First class foreign banks included in the list approved by the Central Reserve Bank of Peru through Circular N° 013-2015-BCRP of 23/03/15, or legislation replacing it. INTERNATIONAL FINANCIAL ENTITIES:

Any international financial institution that has a risk rating not less than the rating of Peruvian sovereign debt related to foreign currency and long term assigned by the international credit rating agencies to rank the Republic of Peru.

Any multilateral credit institution of which the State of the Republic of Peru is a member.

It should be noted that the guarantees from First Category Foreign Banks and International Financial Institutions must be confirmed by any of the Banking Companies listed in this Annex N° 6.