1. Pepper Club The Hottest Address in Cape Town

2. Apartment Hotel Investment Consists of: An apartment and a Parking Bay An interior designed furniture pack A rental pool operated by experienced hotel operators Asset Managed by experienced professional board of Directors (Hospitality industry, Corporate Governance) 1

3. Payment terms Apartment & Parking Bay – 5% deposit : 7 days from signature – 5% deposit: 1 January 2009 – Balance of Purchase price on Transfer Furniture Pack – 50% : 1 July 2009 – 50%: 1 September 2009 2

4. Mortgage Finance Investors are offered: Guaranteed interest rate of PRIME MINUS 5% Currently equates to 10.5% pa For 24 months On a 90% Mortgage Bond Mortgage could be fully repaid within 8 years out of rental income 3

5. Projected Revenue 12% for the first year of operation (Dec 2009 to Dec 2010) – increasing by 10% pa Or guaranteed 8% pa - for 2 years 4

6. Taxation -Urban Development Zone (UDZ) Allowance The Revenue Laws Amendment Bill 2008 provides for the extension of this allowance from 31 March 2009 to 2014. Expected to be legislated early October 2008 5

7. Taxation - Allowances Urban Development Zone (UDZ) Allowance – 11% of unit cost in the first year, and – 4.4% pa for the following 10 years. Depreciation Allowance – 20% pa on the cost of the Furniture pack. Tax Deductable Interest – Interest payable on all funds borrowed to finance the investment is tax deductable Assessed Tax Losses – Tax Losses may be set off against any other taxable income or may be carried forward to following tax periods 6

8. Investment Assumptions Apartment / Bay R1,000,000 Furniture Pack R 150,000 Total Investment R 1,150,000 Financed by – Investor R 250,000 R100,000 Deposit R150,000 Furniture – Mortgage at 10.5% R 900,000 7

9. Tax Allowances Mortgage UDZ Deprec Interest Total Year 1 110,000 30,000 94,500 234,500 Year 2 44,000 30,000 94,500 168,500 Year 3 44,000 30,000 94,500 168,500 Year 4 44,000 30,000 94,500 168,500 Year 5 44,000 30,000 94,500 168,500 Total 286,000 150,000 472,500 908,500 8

10. Taxation Net Rental Tax Taxable Accumulated Allowances Income /(Loss) Tax Loss for year at year end Year 1 138,000 (234,500) ( 96,500) (96,500) Year 2 151,800 (168,500) ( 16,700) (113,200) Year 3 166,980 (168,500) ( 1,520) (114,720) Year 4 183,678 (168,500) 15,178 (99,542) Year 5 202,046 (168,500) 33,546 (65,996) Total 842,504 (908,500) (65,996) 9

11. Projected Values - End of Year Investment Capital Investment Value Appreciation Value - end - beginning of year of year R R R Year 11,150,000 115,000 1,265,000 Year 2 1,265,000 126,500 1,391,500 Year 3 1,391,500 139,150 1,530,650 Year 4 1,530,650 153,065 1,683,715 Year 5 1,683,715 168,372 1,852,087 Total 702,087 Projected capital appreciation - 10% pa 10

12. Total Return – 90% Mortgage Net Capital Total Return on (Tax Loss)/ Income Appreciation Return Investment Taxable After Income Mortgage Interest R R R Year 1 43,500 115,000 158,500 63.400% (96,500) Year 2 57,300 126,500 183,800 73.520% (113,200) Year 3 72,480 139,150 211,630 84.652% (114,720) Year 4 89,178 153,065 242,243 96.897% ( 99,542) Year 5 107,546 168,372 275,917 110.367% ( 65,996) Average 85.767% Total 370,004702,087 1,072,090 11

13. INVESTOR – 90% LOAN Projected Income Tax Free to Year 6 Projected period to repay loan only out of projected income In year 8 12

14. 30 Days Free Usage An Investor may occupy his apartment for 30 days each year, free of rental. VAT is payable. During an investor’s occupation, the apartment will not participate in the rental pool. 13

15. Pepper Club The Hottest Address in Cape Town Only the contents of Agreements signed by the parties may be relied upon. All other representations, written or verbal, are not warranted