CONTRACTS SUMMARY AND ADVICE

Rachawadee Company Limited is a Thai registered company, owns the Mangosteen Pool Villa land freehold and unencumbered. As the landlord, Rachawadee Company Limited offers Units for lease as per the following:

Leasehold: The lease term shall be for the maximum period permitted by Thai law (30 years) with automatic extensions rights for another 30 years under the same terms and conditions.
It is agreed and understood by the parties that the each individual Leased Units will be considered as a part in the whole project situating in the land owned by the Lessor.

NOTES FOR CLARIFICATION

We recommend foreign Buyers to seek advice from professional lawyers if they seek to have more legal information on the freehold ownership within the Mangosteen Suites Estate. They may consult also our appointed Lawyer to seek advice on how to fully conform to the Thai law while maximizing control, facilitate resale and be tax efficient.

ESTATE MANAGEMENT

Kongthep Co., Ltd the Manager will provide Mangosteen Suites Estate owners with a defined range of services, including management of the Common Areas and to deal with the day-to-day operations of the estate, such as site, villa and pool maintenance, provision of maid and housekeeping service, marketing of rentals on behalf of Tenants and reception and business service.

Manager will provide the following services:

Common Area Management: This includes managing security, utilities, refuse, general maintenance, gardening, operation of reception, paying insurance, government taxes, etc. and managing a reserve fund. As an indication only, Manager estimates the “Common Area Fee”to be provided at the discounted monthly fee of Baht 25 per sq. m. for each individual unit owned (full rate of Baht 35 per sq. m. in case of residential use). The Maintenance fee shall be adjusted every three (3) years at the rate corresponding to the consumer price index and market conditions. The Manager also agrees to provide an annual summary of budget allocations and expenses to the Apartment Owner .

Monitoring of the Sinking Fund: The Sinking Fund, is the common fund pooled by each Apartment Owner to contribute to the potential major repair and maintenance of the common areas and infrastructure of the Mangosteen Suites Estate. The Sinking Fund is payable one time only to the Manager is part of a dedicated account at the name of the Manager. The Sinking Fund in the sum of Baht 150,000 Baht, is payable at the time of the unit purchase. The Sinking Fund amount and all interest generated by the account is to be managed by Manager on behalf of all Owners and is to be used at the discretion of the Manager for any major repair and/or maintenance subject to the acknowledgment of the Units owner. The Manager should provide an annual summary of budget allocations and expenses to the Units Owner.

Individual Home Services: Such as gardening, maids, Baby Sitter, pool cleaning (if any) cooks, airport transfers, etc. Individual fees for these services shall be negotiated between individual owners and Manager.

Rental Services –Upon buying your unit, it is compulsory for the first two years to enter in a Rental Agreement with the Manager.

All rental income collected on the Individual Property except Additional Use Allocation described below shall be distributed to the Unit Owner at the rate of Sixty (60) percent every quarter in Thai Baht currency after all applicable taxes and other charges, if any, at the designated bank account in Thailand provided by the Apartment Owner. This fee is inclusive of all utilities cost (water, electricity).

Rental Service will be governed by the following rules:

•Option 1 - 30 days owners use, Peak Season excluded
Owners allocation of 30 days per year, excluding of peak season period.
Guarantee return of 7% first two years

•Option 2 –30 days owners use, Peak Season included
Owners allocation of 30 days per year, including peak season period.
Guarantee return of 6% first two years

•Option 3 –60 days owners use, Peak Season excluded
Owners allocation of 60 days per year, excluding peak season period.
Guarantee return of 5% first two years

•Option 4 –60 days owners use, Peak Season included
Owners allocation of 60 days per year, including peak season period.
Guarantee return of 4% first two years

•Additional Use Allocation. In addition to the owners allocation period (“Free Use Allocation”), the Apartment Owner shall also have the right to additionally use the Individual Property during the non-peak period by making reservation to the Manager at least three (3) months prior to the check-in date and pay the rate of fifty (50%) of the applicable tour operator rate inclusive of all surcharges to the Manager. Manager will not redistribute any Rental Income share revenue to Owner in that specific case. The return guarantee would not apply.

•Residential use: After the initial period of two years operation, owners have the option to use the Suite on their own as residence and leave the rental program with 90 days written notice prior to the end of each year. In case of residential use, no sub lease of any kind is permitted. The full undiscounted common area maintenance fee will apply to each residential unit. In-room services have to be provided by the manager and will be charged according to pricelist. As an indication only, manager estimates the services to be provided at the following rates:
• daily in-room maid service, including fresh bed linnen, bath towels, dish cleaning and general room cleaning, gardening, per month: THB 18.000.-
• in-room service as above every second day, per month: THB 12.000.-
• daily check and clean-up in case of absence, per day: THB 150.-
• personal laundry will be charged at 50% discounted rate of hotel price list
• no outside contractors/services are allowed in the resort.

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