ENVIRONMENTAL COMPLIANCE PLAN

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1 ENVIRONMENTAL COMPLIANCE PLAN WRI7TENBY." THE DEPARTMENT OF THE ENVIRONMENT FOR: Discovery Expeditions Belize Umited FOR THE SEA TREK ADVENTURE UNDERWATER HELMETED DIVE ACTIVITY LOCATED IN THE MEXICO ROCK AREA AMBERGRIS CAYE NEAR THE BELIZE BARRIER REEF April 2010

2 ENVIRONMENTAL COMPLIANCE PLAN For DISCOVERY EXPEDITION BELIZE LIMITED FOR THE SEA TREK ADVENTURE ACTIVITY - UNDERWATER HELMETED DIVE LOCATED IN THE AREA OF MEXICO ROCKS AMBERGRIS CAYE The following are the terms and conditions of the Environmental Compliance Plan entered into between the Discovery Expedition Belize Limited, hereinafter referred to as the developer, and the Department of the Environment (DOE, in respect to the Sea Trek Adventure Underwater Helmeted Dive located in the Mexico Rock Area, Ambergris Caye. It is agreed by the Developer that the terms and conditions of this compliance plan shall be binding upon the Discovery Expedition Belize Limited, its servants or agents, successors, or assigns. The terms and conditions embodied in this compliance plan are made pursuant to Regulation 6, 10(2 of the Environmental Impact Assessment (Amendment Regulations, "S.l. (No 24 of 2007" and all other relevant provisions under the Environmental Protection Act, Chapter 328 of the Laws of Belize, Revised Edition Environmental Clearance is being granted under these conditions. PURPOSE The purpose of this document is to officially institute best practice measures that would prevent, control and mitigate the environmental degradation that may arise from the project. It must be borne in mind that this Environmental Compliance Plan was prepared based on the best available information submitted for this project and those gathered from the site inspection conducted. The Department of the Environment (DOE reserves the right to make modifications to this compliance plan, with prior notification to the developer, as the project develops and more information becomes available. The Developer agrees to strictly adhere to this document during all stages of the development of the project. The Department of the Environment and other relevant agencies will conduct compliance monitoring. Disregard of the terms and conditions of the compliance plan specified herein may result in the developer's permits being revoked. This compliance plan is a dynamic one and may be reviewed and revised from time to time as the project develops and more information becomes available. This compliance plan does not absolve the developer from compliance with other relevant regulations and laws of Belize.

3 1.0 SPECIFIC ACTIVITIES FOR WHICH CLEARANCE IS BEING GRANTED Environmental Clearance is being granted for Underwater walking helmeted dive activity on a defined path, with a rope rail, not exceeding 105 m, within the area bounded by the following co-ordinates: EastingS Nonhings Operation of a floating barge with dimensions 42ft X 16.5 ft housing the underwater helmeted equipment, air compressor and restroom facilities, to be located within the above specified project area. The path and area are to be located as per maps/plans submitted. No other development or activity whatsoever shall take place outside of what has been agreed to and described in this compliance plan, without the prior written permission of the Department of the Environment. 2.0 ENVIRONMENTAL RISK ANALYSIS The Department of the Environment has prepared this environmental risk analysis based on the information submitted and other relevant information gathered by the DOE. This Environmental Compliance Plan (ECP was then developed to mitigate the potentially negative impacts associated with this type of development. POTENTIAL SOURCES OF ENVIRONMENTAL IMPACT DURING DEVELOPMENT OF THE PROJECT: Habitat destruction due to increased risk of possible damage to the surrounding coral reef. Increased sedimentation due to installation of the fibergrate walkway. Contamination of the sea during the operational phase of the project due to increased sedimentation and impacts of human activities. Changes in population dynamics arising from the development and its consequential environmental effects. This list is by no means an exhaustive list of potential environmental problems that could arise from the said proposed activities

4 3.0 ENVIRONMENTAL COMPLIANCE PLAN The implementation of this project will be carried out only for those activities described in this Environmental Compliance Plan. No further development will take place outside of what has been proposed without the prior written permission of the Department of the Environment. Environmental Clearance will need to be obtained from the Department of the Environment for all new activities outside of what is agreed upon in this Environmental Compliance Plan. Recognizing that the project could have potential negative environmental impacts, the developer hereby agrees to take the necessary measures described in the following actions to mitigate these impacts DEMARCATION OF THE TREK PATH In an effort to mitigate the negative impacts associated with demarcating and installing a rope rail to demarcate the underwater path, the developer agrees to take the following measures: Discovery Expeditions Belize Limited will obtain approval from the Land and Surveys Department for activities proposed to occur on the seabed Prior to installing the path rail under the water, the developer must provide to the DOE and Fisheries Department a layout plan of walkway for vetting and approval The installation of the required path rail will be conducted under the supervision of the Department of Environment, the Fisheries Department and any other agency(ies the DOE may deems necessary. All costs associated with such activity will be borne by the Developer Within two (2 months of the signing ofthis ECP, the Developer will conduct a set of water quality testing of the project area and submit the results to the DOE as baseline data Within two (2 months of the signing of this ECP, the Developer will complete a Benthic Community Assessment of the project site and of the surrounding coral reef formation, with particular respect to juvenile coral density within the project area; and, will submit the assessment report, along with pictures, to the DOE to serve as baseline data The methodology used to install the path rail (made of rope and mooring pins will ensure that no damage occurs to the surrounding coral structure. Such methodology MUST be first approved by the DOE The anchoring devices of the sea trek path will not rest on any coral formations or damage any of the corals within the project nor surrounding area The rope rail will be properly anchored to the sea floor to ensure that it does not float away and damage the reef Should installation of the path rail and subsequent operational activities for this underwater helmet activity result in negative impacts to the surrounding environment and the coral reef structure, Discovery Expedition Belize Limited commits to being responsible for any

5 compensation or rehabilitation works to remedy such impacts, under the direction of the Department of the Environment NAVIGATION Prior to commencing the installation and operational phase of the Sea Trek Adventure, Discovery Expedition Belize Limited will first obtain permission/approval from the Belize Port Authority for the above stated location Prior to installation of the path rail and buoys, the Developer will advertise in at least in one widely circulated newspaper the proposed activity and its location In an effort to ensure that the Sea Trek project site does not become a navigational hazard, the barge and site will be properly demarcated using buoys in accordance with the Belize Port Authority standards The floating platoon (barge will be properly demarcated and lighted in accordance with Belize Port Authority'S standards so as not to become a navigational hazard In order to ensure minimal damage to the area resulting from the throwing of anchors, proper mooring buoys will be installed near the project site Prior to commencement, and during the operational phase of the project, the Developer will ensure that mariners are made aware of the Sea Trek adventure site, through advertisements via the different media houses SEDIMENTATION If applicable, silt curtains will be put in place to minimize the sediment dispersal during the installation of the path rail, and will remain in place until the sediment within the immediate area has completely settled The developer and/or his agents will ensure that minimal sedimentation occurs during the operational activities of the Sea Trek adventure The tour guides and tourists visiting this destination will be properly briefed pnor to participating in the Sea Trek adventure in order to ensure minimal sediment movement during underwater activities The tour guides and tourists will be made to strictly adhere to the defined path during all tours and activities for the Sea Trek adventure OPERATION OF THE FLOATING PLATOON Prior to the operational phase of the Sea Trek adventure activity, the specifications of the floating pontoon must be submitted to the DOE for vetting and approval All machinery, especially the air compressor and generator, and equipment, including the underwater dive helmets and hoses, must be properly maintained and kept in an enclosed

6 containment area aboard the vessel, and must be properly maintained to ensure the safety of the users The floating platoon will connect to mooring buoys and remain at the Sea Trek project site from 8:00 am to 5:00 pm for operational activities daily The floating pontoon will not remain permanently at the Sea Trek project site, but instead return to the Discovery Expedition Belize Limited pier every evening WASTE DISPOSAL In an effort to control, reduce and prevent the environmental impacts associated with waste generation and disposal, the developer agrees to take the following measures The developer will develop and submit to the DOE for vetting and approval, a comprehensive waste management plan which addresses the proper storage, treatment and disposal of liquid (sewage & bilge, solid and hazardous waste. This will be submitted within three months of signing this Environmental Compliance Plan No waste of any kind: solid, liquid (sewage or bilge or hazardous waste will be dumped at sea All solid, liquid and hazardous waste will be collected and properly stored in sealed containers until they can be transported and disposed of at designated waste disposal site The developer is encouraged the practice of reuse, recycle and composting of organic wastes generated by this project RECREATIONAL ACTIVITIES Before any activity is undertaken, the Developer will ensure that vessel operators, tour operators and guides, and passengers are reminded of tbe rules and guidelines associated witb this activity No persons will be allowed in the water without a licensed marine tour guide/operator, fully trained in the Sea Trek procedures, in order to ensure the safety and protection of the tourists and our precious coral formations No persons will be allowed to touch, stand on, damage or take any coral or reef formation nor any part of the sea grass beds No recreational/commercial fishing will be allowed on board the floating platoon No persons will be allowed to wear gloves, and only use of biodegradable sunscreen will be allowed prior to experiencing the Sea Trek activity No person shall disturb, remove or collect from the sea any species of flora or fauna, including rocks, dead coral, shells or sand No person (tourist or tour guide is allowed to feed, touch or harass any marine fauna.

7 No more than twenty (20 persons will be allowed to be present underwater at the same time in an area of one hundred (100 square yards A maximum of eight (8 persons/tourists will accompany one licensed tour guide and one certified safety scuba diver per tour. This is in order to guarantee proper supervision and safety of the tourists, should they need special assistance SAFTEY The developer will ensure that all infrastructures (path rail, pontoon are removed from the seabed in case of strong wave action, a tropical storm or a hurricane approaches The developer will ensure that properly trained personnel will operate and monitor the compressor and air supply for the Sea Trek activity at all times In case of an accident or failure of equipment during a Sea Trek tour, a back-up air supply will be available aboard the pontoon, and this will automatically activate allowing the underwater divers sufficient time to surface The developer will ensure that only properly trained personnel and tour guides are hired and be present at all times to ensure safety and compliance of tourists within the Sea Trek project site All vessels involved in the Sea Trek activity must have functioning communication radio equipment on-board, in case of emergencies at all times, that at least two (2 fire extinguishers are strategically located in plain view for fire protection purposes No Sea Trek activity will occur in the event of a storm, strong wave action or a hurricane approach CULTURAL AND SOCIAL ISSUES It is important that cultural and social Issues be addressed so as to assist decision-makers III achieving sustainable development The Developer will, prior to commencing any activities pertaining to the Sea Trek adventure (installation, operational, conduct consultations with, and obtain the approval from, the San Pedro Town Board/Council The developer will develop and implement a public awareness program to educate and inform the general public of the activities pertaining to Sea Trek Adventure project All natural features of national significance (i.e. valuable or endangered flora will not be altered during the installation and operational phase of the Sea Trek activity. Should any such species exist in or near the project site, the developer will report such to the Fisheries Department and the DOE, and operations in the immediate area will stop until the developer presents to the DOE evidence that approval has been granted by the relevant agency to resume its activities.

8 As long as there are qualified and available Belizean workers, no labour force will be imported. If this labour force is not sufficient, then only aliens with a valid Belize work permit will be employed All safety and health measures will be observed for all employees. Potable water and restroom facilities will be provided. 4.0 ENFORCEMENT AND MONITORING The implementation of this Environmental Compliance Plan (ECP will be the direct responsibility of the Discovery Expedition Belize Limited and/or its successors. The Department of the Environment, in conjunction with other relevant agencies, shall carry out compliance monitoring to ensure that this Environmental Compliance Plan is being adhered to A water quality monitoring program for the project site will be developed and submitted to the DOE for vetting and approval within three (3 months of signing this ECP Three (3 months after commencement of the Sea Trek project operational phase, a water quality assessment report will be submitted to the DOE, for baseline purposes. Thereafter, water quality assessment reports will be submitted annually to the DOE A coral reef monitoring program of the surrounding reef environment must be developed and submitted to the DOE within three (3 months of the signing of this ECP for vetting and approval Subsequent to the commencement of the Sea Trek project operational phase, the Developer will submit coral reef assessment reports bi-annually to the DOE The Department of Environment and other relevant agencies will conduct periodic monitoring of the Sea Trek project site, and if the findings of such reveal that the Sea Trek activity is causing irreversible damage to the environment and coral reef structure, the activity will cease. All related equipment (including path rail will be removed and disposed of properly; and the project area will be returned to a condition as close as possible to its natural state prior to the development activities. All associated costs of the removal, disposal and rehabilitation will be borne by the developer During development, measures taken to mitigate negative environmental impacts shall be reviewed to assure compliance with the objectives of the plan. As development continues, the adequacy of mitigation measures shall be assessed and where necessary revised in consultation with the developer To ensure that compliance monitoring with respect to this environmental compliance plan and to assist in defraying incremental costs associated with monitoring by the Department, the Discovery Expedition Belize Limited, its servants or agents, successors, or assigns will pay an annual monitoring fee of Five Thousand Dollars ($5, to the Department of the Environment/Government of Belize. The monitoring fee is due upon obtaining environmental clearance and on the same date the environmental compliance agreement is signed every successive year thereafter for the duration of the project. This sum may be

9 reviewed by the Department within two (2 years subsequent to the operation of the development or as the Department may deem necessary. REPORTING REQIDREMENTS 4.08 The developer will comply with all of the reporting requirements specified 10 this Environmental Compliance Plan The developer will also hold periodic meetings with its contractors regarding the implementation of ongoing environmental considerations Updated licenses and permits for all relevant activities will be kept at all times. The developer will assist duly authorized officers in the performance of their duties during site visits, which are in connection with the project's development It is the responsibility of the developer to immediately report any activity that has the potential to negatively impact or may damage or has damaged the environment, whether accidentally or intentionally, to the Department of the Environment and all other relevant agencies. POST DEVELOPMENT REVIEW 4.12 The exercising of sound environmental ethics shall not end after the installation of the rope rail, but rather provisions shall be made for monitoring during the operational phase. A system shall be put in place for reporting negative impacts as well as a means of continually implementing corrective mitigation measures where the need arises As previously mentioned, wanton disregard for the conditions agreed upon in this document may result in the revocation of all permits and licenses issued for the implementation of this project and in the imposition of administrative and/or legal penalties.

10 Discovery Expedition Belize Limited (the developer herein agrees to comply with this Environmental Compliance Plan (ECP and to commence operation of this project within one year from the date of signing this ECP. If this project does not commence within one year from the date of signing this ECP, this document will be null and void. Should this happen, the developer will need to re-apply for Environmental Clearance and a new plan may be prepared. SIGNED on behalf of DISCOVERY EXPEDITION BELIZE LIMITED -~~~=~=r-- DAVIDGEGG GENERAL MANAGER / DIRECTOR I, --':.!.!.:.:..Ll<:Ho~---':::=-=-~_, am the attesting witness to the due execution of the said instrument and the signa e hereto subscribed as that of such attesting witness is in proper handwriting of the said deponent. Sworn at the Department of the Environment, Belmopan, The /7 dayoc f.! ~ESS, SIGNED on behalfofthe DEPARTMENT OF THE ENVIRONMENT I, kat"'- 5 LD ' am the attesting witness to the due execution of the said instrument and the signature hereto subscribed as that of such attesting witness is in proper handwriting of the said deponent. Sworn at the Department of the Environment, Belmopan, The 1'1 day of tjp-. /,2010. WITNESS!O

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