Private co-ownership in Provence

PRIVATE CO-OWNERSHIP IN PROVENCE 09/2009 Luxury vacation home at a fraction of the cost PRESENTED BY FRANCE FRACTIONAL INVEST Private co-ownership is the opportunity to develop your own fractional ownership property – without using a developer. This is a property concept. We provide every element of the second (or third) home you have always dreamed of owning, in one of the world's most fabulous regions, without the months or years of effort it would take to create it yourself, at a fraction of the cost of owning it in its entirety. We take on the developer’s role on your behalf: we assemble a group of 8 like-minded co-owners, find the property, renovate it and organize everything until you can move in. We also hire your staff for you, and run the house – when you are away, and even when you’re there. You are in control. Contact: Pierre Guillery +33 (0)6 8434 8992 Mail: pguillery@francefractionalinvest.com The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction in which such distribution or offer is not authorized. In particular, the information herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America or to or for the benefit of any US Person as such term is defined under the United States Securities Act of 1933, as amended.

© Pierre Guillery/FFI 09/2009 Takeaway If you have been IN THIS DOCUMENT considering buying a house in the South of Understand the concept Page 3 France for a long time, Discover the region Page 8 but haven’t transformed the dream Find out about the property Page 11 into reality yet – this Review the financials Page 14 may be what you are Illustrative purpose looking for. Follow the process Page 16 THE CONCEPT ABOUT YOU You all know about fractional ownership – often We believe that this offer is most ideally suited described as “luxury second home without the for 45/65 yr-old Francophile professionals or hassle.” Private co-ownership is the opportunity entrepreneurs, financially secure, with a taste for to develop your own fractional ownership good service, possibly already owner of a property – without using a developer. second home in North America, and who have long considered buying a property in Provence This is a property concept. We take on the – but have never fulfilled their ambition. developer’s role for you: we assemble a group of 8 like-minded co-owners, find the property, renovate it and organize everything until you UZÈGE, PROVENCE can move in. We also hire your staff for you, Often called "little Tuscany" for its vineyards and run the house – when you are away, and separated by dark cypresses, village squares, even when you’re there. country mansions, culture, and its Renaissance buildings, the Uzège is a preserved corner of Building type: 18th or 19th century “mas”; western Europe that has somehow escaped the Location: Uzège, in Provence; notice of the world's tourist hordes. Here, one can live in a charming village with stone houses, Size: 250/350 m² (2,690/3,800 sq.ft); surrounded by vineyards and gentle hills, and be an hour from the beaches of the Rooms: 12/15, incl. 4 bedrooms; Mediterranean, skiing (in winter) or hill walking Amenities: lots of light, splendid views, and canoeing (in summer). fireplace, balcony, patio, secured storage Rich in architecture and religious history, Uzès for personal belongings, all the luxurious could be visited over and over again and never comforts; get old. Besides one of the most beautiful Co-owners: 8; markets in the South of France, there are numerous restaurants, wine bars and outdoor Cost: 165,000€ ($235,600) each; cafés to discover. Uzès lives year round, buzzing with tourists and locals, including many Usage: 6 weeks (1 ½ month) per year; ex-pat English and Americans. The small town is Upkeep fee: 8,400€ ($11,900) per year. the vision people have of the South of France – and you could be living it. If you love Provence, we promise you will love Uzès and everything it has to offer. Page 1

© Pierre Guillery/FFI 09/2009 ABOUT THE PROPERTY The first property identified for this concept is the Mas André in Gattigues. Mas André, South facing courtyard The Mas André is a South facing authentic (early 19th century) old stone farmhouse located in Aigaliers, 8 km from Uzès, offering 300 m² 25 km (3,160 sq.ft) of living area, with 4 bedrooms (2 25 miles ensuite, including the largest the ground floor), family room, large kitchen, summer/dining room, a staff apartment and small outbuildings, sitting on a 6,400 m² (1.6 acre) walled garden with banks of olive trees (approx. 80), green oaks and rose bushes. FRANCE FRACTIONAL INVEST This concept is brought to you by France Fractional Led by Pierre Guillery, a US-educated (BSBA, MBA) Invest (FFI). Using our real estate experience and our fully bilingual 43-year old consultant and entrepreneur, local contacts, we integrate the best of French design FFI is a real estate consultancy enabling its customers to with the comforts and conveniences that owners expect. make fractional projects in France happen, and acting We provide every element of the second or third home on their behalf in a number of capacities, including: our customers have always dreamed of owning, in one property scout, administrative handler, and project of the world's most fabulous regions, without the months coordinator. We can also set up and manage the of effort it would take to create it themselves, at a service firm you will require, including all personnel, fraction of the cost of owning it themselves. accounting and tax-related issues. For more information, visit: www.francefractionalinvest.com Page 2

© Pierre Guillery/FFI 09/2009 The concept You have been considering buying a house in the South of France for a long time. You love Provence, its olive oil, warm weather and culture, and the fact that it is just a superfast train ride away from Paris or Barcelona. You have travelled there many times – and you really want to go back. Ideally, you would happily live in Provence for a month of two each year when you retire. But you haven’t transformed the dream into reality yet: of course, there is the cost – but also the complication handling by yourself the purchase and day-to-day management (as well as possible renovation) of a house in a country a day’s travel away from home – and where they all speak French. Read on: this may be what you are looking for. PRIVATE CO-OWNERSHIP Let’s say you decide to The old fashioned way buy your vacation home in Provence. In September 2009, the cost of buying a quality renovated farmhouse in Provence (a “mas”) with To find the perfect a swimming pool, 250 m² of living area and a property, you start landscaped garden of half an acre is between searching the web and 2,500€/m² ($330/sq.ft) in Uzège and making calls to estate 4,400€/m² ($581/sq.ft) in the Lubéron region – agents (some will speak from 625,000€ ($889,000) to 1.1m€ ($1.56m). Illustrative purpose English, but most won’t). The annual cost of running such a property starts Y o u n e e d t o o r g a n i ze at 8,000€ ($11,400), including personnel, rates, inspection visits, to have surveys done for the water, replacement costs. properties you are interested in – before any purchase. You also need to check that there There is an alternative are no plans to build other properties, office or You all know about fractional ownership1 – agricultural buildings nearby. The actual often described as “luxury second home without contract process is handled by a “notaire” the hassle.” Private co-ownership is the (public notary), as they are the only persons opportunity to develop your own fractional permitted by law to perform conveyancing in ownership property – without using a developer. France. The whole process takes from 4 to 8 months – depending on how much time you have Most fractional property opportunities are to handle the search, and how quickly you find properties that have been purchased, renovated the house of your dreams. and decorated by one developer who creates If you plan some renovations, you need to hire the legal structure and documents, then offers the contractors and manage them to ensure that the fractional interests for sale. Although they everything goes as planned. A simple house make a lot a financial sense, these arrangements “refreshment”, with the addition of a swimming pool, will take a minimum of a month to 1 Each owner is deeded a fractional real estate interest complete. Unless you are planning to be there of a specific residence (condo or otherwise). In addition while the renovation work is going on and you to the cost of their ownership interest (usually between $100,000 and $600,000), the owner also pays annual speak fluent French, you should recruit a maintenance costs, based proportionately on ownership knowledgeable person to oversee the project. (usually 2% and 5% of purchase price). All the other Finally, you need to organize the year-round related concerns of second home ownership, including management of your home: find a gardener, a maintenance and furnishing replacements, are left to the property management company. This type of maid (when you visit) and a plumber (in case of purchase is for usage periods ranging from 4 to 13 emergencies – whether you are around or not). weeks per year on the property, with the average high-end fractional stay falling in the 1/7 to 1/8 range. Page 3

© Pierre Guillery/FFI 09/2009 are seldom organized by the users themselves – Step-by-step usually because of the complicated nature of the work involved. Purchase pool But we believe that you may want to feel like It all starts with the creation of a group of the property is really yours – starting from prospective co-owners, the “purchase pool”. scratch. So we offer to take the burden away Purchase pool members may or may not know from you: we will “do it all” on your behalf, each other prior to the launch of the project3 – if under your control. We will help assemble a you don’t have friends interested in the project, group of 8 like-minded we will find prospective co-owners for you4. co-owners, find the Each prospective co-owner, as member of the property, renovate it purchase pool, must be willing to invest the full and organize everything amount of one of 8 shares to be held in an until you can move in. escrow account to fund the property search We will also hire your (when applicable), purchase and renovation5. staff for you, and run the house on your behalf – Discovery visit when you are away, and Illustrative purpose Prior to their committing to the purchase pool, even when you’re there. we can organize private discovery visits6 for prospective co-owners. You simply make your HOW THIS WORKS travel arrangements to get to Paris, and we We are offering a property concept2: to search, take care of everything else: hotel and find, renovate, furnish, landscape a property to transportations, restaurants, car rentals, visits – be shared between a small group of co-owners: both in Paris, and in Provence. We will show you the region, and a few houses, and introduce our Building type: 18th or 19th century “mas”; local partners. After this week-long experience, you should be ready to make the decision to Location: Uzège, in Provence; proceed – or not. Size: 250/350 m² (2,690/3,800 sq.ft); Property search Rooms: 12/15, incl. 4 bedrooms; For this project, the property has Amenities: lots of light, splendid views, been identified in fireplace, balcony, patio, secured advance. In other storage for personal belongings, all top cases, the search quality kitchen and bath fixtures, all the will commence luxurious comforts; Illustrative purpose upon commitment Number of co-owners: 8; in writing of all pool members, and receipt of deposit funds (10% of share cost) from all Cost: 165,000€ ($235,600) each; members of the purchase pool with an agreed Usage: 6 weeks (1 ½ month) per year; 3 Contrary to what you might think, groups of complete Upkeep fee: 8,400€ ($11,900) per year. strangers who come together through such a packaged offering are often more successful at co-owning and managing the shared property than groups of friends or family members! 4 However, recruiting pool members yourself will help you reduce the cost of your own share. See “Process” for details. 2 This concept has been pioneered by Adrian Leeds, 5 See section “Process” for details. whom you should contact if you wish to design your own 6 All inclusive cost: from 3,500€ ($4,990) for one fractional apartment in Paris (www.adrianleeds.com). person, excluding USA/France round trip. Page 4

© Pierre Guillery/FFI 09/2009 upon allowance for a minimum of 90 days to locate the property7. WHY THIS MAKES SENSE Upon location of a property that fits the A fraction of the price specified parameters, a memo with photos and The share cost is 165,000€ – a big difference description of the property (already from the whole ownership price of around incorporated in this document – “The €650,000 for a comparable property with a Property”) will be sent to all members who may similar location and amenities – and with no decide at that time to approve or decline the management or concierge services. Why pay property in a timely manner – within 48 hours of for year-round use of a vacation home you’ll receipt of the memo. The purchase process is only use a few weeks of the year? Also, you enabled to proceed when the group which is avoid the time, effort and difficulty of outfitting able to approve the found property, with a the property, creating the legal structure and combined total of 1.344m€. assembling the owner group. Purchase and renovation No hassles Under the control of their respective lawyers, members of the purchase pool will provide It is bad enough when you need to do proxy to France Fractional Invest to sign notarial renovations on your property back home... documents on their behalf (“Promesse de Vente” imagine what it must be like to supervise a job and “Acte de Vente”). Allow 3 to 4 months to long-distance, in a fairly difficult work completion. environment such as France. Then there's the management aspect: you need the assurance Three decor that you will not have to worry about mowing concepts that fit the lawn or paying the taxes. within the renovation budget Every time you come to Provence, you know just will be presented where you’re going to stay – you never have to to the purchase call another hotel or rental agency again. When pool for voting an you arrive we arrange for airport pickup, the Illustrative purpose one will be mas is sparkling clean, and your fridge is executed by the interior architect and stocked with groceries. During your stay, we construction team. Any choices made by the provide complete concierge services, handling purchase pool outside the framework of the restaurant reservations, golf tee times, and budget will be charged over and above the theatre tickets. When you leave, you don't have initial fees. Allow 4 to 6 months to completion. to worry about cleaning, or about paying bills, or fixing a leak. You just pack and leave. We Members of the purchase pool may choose to take care of the rest. appoint one spokesperson for the purchase pool to No reason to rent make day-to-day decisions A typical vacation home owner has the choice and act as a "liaison" between leaving the property vacant when it is between all members of not being used, or renting it out to cover some the purchase pool. running costs – which (as anyone who has been involved in vacation rental knows) has significant downsides. As a co-owner, the lower cost of buying into the property means that you won’t even have to consider this option. 7 See section “Process” for details. Page 5

© Pierre Guillery/FFI 09/2009 KEY POINTS Specifically, each co-owner will have a fixed two-week block of usage each year, with the Legal structure 8 other 2 two-week blocks organized on a rotating basis, with a system in place to enable Each co-owner is a shareholder in an US-based co-owners to easily “swap periods” at will. company, which in turn holds all the shares in a French real estate entity, called a société civile Also, being part of the co-owners association’s immobilière, or SCI. This double company bylaws, the usage system will be “modifiable” structure is set up in order to ensure the simplest by the co-owners collectively if/when the and most transparent ownership structure for the choose. property, as well as to make shares easily transferable without disrupting the underlying Management and upkeep ownership structure of the property. The property will be managed by a staff of two living on the premises – with gardening, This ownership maintenance and hosting responsibilities. This structure means “duo” will be expected to be bilingual that each co- French/English, with some US/international owner avoids the experience in order to facilitate the cultural tax filing and interaction with the North American co-owners. Illustrative purpose other formalities We will ourselves manage the staff and handle that usually come along with owning property in the overall financial management of the France. All French taxes and legal requirements property. are paid by the SCI, a process entirely managed on behalf of the owners so that they At the end of each year, we will present an have no confusing foreign documents or estimate of all of the expenses for the following responsibilities to manage. Each owner will year, and determine the amount that will be receive a concise tax statement for their portion needed from each co-owner to pay the bills. of income and expenses, which you can include Co-owners will be required to approve the in your personal income tax statements9. accounts and the projections. The anticipated expenses should include some reserves for long- Usage term recurring expenses such as painting, roofing, system upkeep, and furniture and As the most important element of a vacation houseware replacement. home sharing arrangement is the usage structure, the property has a permanent usage The amount required from each co-owner will be structure so that each co-owner can be certain of divided into equal monthly or quarterly his/her usage rights well in advance to allow payments, and each owner will be required to plenty of time for planning. contribute his/her payment on schedule. In this way, each co-owner knows with a fairly high degree of precision what will be expected of him/her in the coming year. 8 The customized legal structure will be designed by Andrew Sirkin, the recognized real estate co- ownership legal expert, both in France and in the United-States (www.andysirkin.com). 9 We strongly suggest that each prospective co-owner obtains individual tax advice on their own, to understand the possible tax benefits or liabilities in light of their personal tax situation and planned usage of the property. Page 6

© Pierre Guillery/FFI 09/2009 SPECIAL TREATS Your own olive oil Make your own olive oil from the 80 olive trees of the property10 – with the help of a local farmer and the cooperative. Each year in November, you can assist in the harvest and the following spring, you can send “virgin olive oil” bottles to your friends and family! Cookery workshops Learn French cuisine, the “provençal way” with truffles - in your own kitchen! Each year or on demand we will organize private cookery sessions for you and your guests. Seasonally fresh ingredients, your own Chef teacher, - you taste all the dishes at the end of the session. Also possible: excursions to the neighboring Cotes du Rhône wines cellars and wine tastings. 10At the Mas André, over 300 liters of oil can be expected from the 80 trees producing 20 kg each. Page 7

© Pierre Guillery/FFI 09/2009 Discover Uzège THE “OTHER” PROVENCE Often called "little Tuscany" for its vineyards one of the best open-air markets in all of separated by dark cypresses, village squares, Provence, a bit of a time capsule with lofty country mansions, culture, and its Renaissance towers and narrow streets. buildings, the Uzège (350 sq.miles around Uzès, just West of the Avignon and the Rhone, and There’s a touch North of Nîmes) is a preserved corner of of Saint-Rémy western Europe that has somehow escaped the de Provence notice of the world's tourist hordes. Here, one about Uzès, can live in a beautiful charming village with with Latin stone houses, surrounded by vineyards and grace and gentle hills, and be an hour from the beaches of perhaps an the Mediterranean in the south, an hour from extra touch skiing (in winter) or hill walking and canoeing (in of intimacy and authenticity. The same circular summer) in the north, and less than an hour from boulevard, the same bubbling fountains, and the Nîmes, Avignon and Montpellier theatre, cinema, same unbridled heritage. A walk round Uzès restaurants and life. begins with a circuit of the old centre, with its pedestrian streets, “trendy” shops and At the same time in Provence and in Languedoc, architectural treasures, such as the Château des the Uzège region has a number of terroirs in Ducs d’Uzès, a private property but open to which wonderful, distinctive goods such as olives, visitors (owned by De Crussol d’Uzès family who apricots, wine, cherries, peaches and truffles are have been living there, on and off, for more produced: gourmet treasures that you can find in than 1,000 years), the Saint-Théodorit the fourteen surrounding villages, which in recent Cathedral and the Fenestrelle Tower, with its years have been adopted by Parisians. Because similarities to the Tower of Pisa, the magnificent it’s the done thing to be seen in Uzès! In summer, private mansions that were homes to the Baron this New Lubéron takes on a somewhat foreign de Castille and Chambon de la Tour, and also the accent: an invigorating breath of fresh air that Place aux Herbes, the town’s epicenter, with its plays its part in the incomparable charm of this lovely arcades and café terraces, where the city of the Dukes. weekly market that takes place on Saturdays. A jewel of a town Centuries old and completely restored, Uzès (pop. 8,000) has retained an architectural heritage The city centre is listed as a protected historical that spreads over a sector (the largest in France). The very powerful landscape dotted Ducs d’Uzès were the first dukes of France and with villages and the town was the seat of a diocese until the planted with fruit Revolution and marked by the Wars of Religion, trees, vines and but it was little affected (if at all) by the truffle oaks. It is a Industrial Revolution. It has since preserved its jewel of a town with glorious heritage. Page 8

© Pierre Guillery/FFI 09/2009 could not possibly be considered as anything GEOGRAPHY, CLIMATE & FOOD less than a Provencal writer! Where the mistral rules 250 days of sun Most books on Provence include Uzès, at the The Uzège (also called “Gard Provençal”) boasts Western edge of the first ‘province’ of the a Mediterranean climate, with typical south Roman Empire outside Italy, in an area where European vegetation with olive trees, vineyards, many remains of the Empire can be found palm trees, garrigue scrublands, fig trees, apricot (including amphitheatres at Nîmes, the Roman and cherry trees. aqueduct known as the Pont du Gard, and numerous roads). However since 1972 France It gets 250 to 300 days of sun a year, and has been divided in 22 regions, with the Gard temperatures reach 40°C (104° F) in the summer department (where Uzès can be found) now and average lows of 3-5°C (37.4 or 41° F) officially part of Languedoc Roussillon – just during the winter. Winter is short, only lasting for outside of the “official" Provence-Alpes-Cotes a couple of months before temperatures start to d’Azur, an administrative region comprising five warm up again around February. Summer starts départements stretching from the Rhone River to around May with midday temperatures in the mid the Alps and Italy. twenties (25°C or 77°F). Warm weather extends through much of October. Provence cuisine Every Saturday in Uzès one can enjoy the smell of Provence at the farmers market where local producers offer stands of various products such as olive oil, local wines, goat cheeses, fresh organic poultries, sausages and Illustrative purpose meats from the In truth, Provence is largely an intellectual and Cévennes, herbs emotional concept – although it is often from Provence and perceived as a “single and indivisible lavender. phenomenon”, a bucolic land of lavender fields and fortified hilltop villages. Its borders have long been disputed, not least by the Provencaux Each January, Uzès welcomes a truffle market themselves. Frédéric Mistral, 1904 Nobel Prize where producers and chefs meet to admire and winner, the poet who was instrumental in buy the dark diamond. Uzès cuisine carries the reviving the lost Provencal tongue and who flavor of its terroir products, the colors of attracted international attention to his cause, Languedoc and a distinct Provencal accent, with said that: “Wherever the mistral rules, you are in the truffle as a base in winter, the asparagus in Provence” and “It was the Rhone that made spring and the melon in summer. The olive (and Provence in concert with the wind. Right bank, left its oil) nevertheless remains one of the mainstays bank, kingdom, empire, all are Provence.” of the meal, whether it's the picholine or the Because if its borders are drawn by the colliasse named after the village near Uzès. The language, they are also dictated by the specialties: brouillade de truffes (truffle prevailing wind: the mistral. The infamous wind, scramble), friand aux olives et pélardons (pastry with which the poet shared his name, does not with olives and pélardons), numerous dishes with blow on the Riviera (and so excludes this an asparagus base. Nearby is the Côtes-du- celebrated coastline from Mistral's definition) Rhone wine region as well as the village of but blows in the Roman towns of Nîmes and Tavel, famous for its renowned rosé wine. Uzès. What is more, Nîmes was the birthplace of Mistral’s great friend, Alphonse Daudet, who Page 9

© Pierre Guillery/FFI 09/2009 Tasting around the vineyards terrain traditionally farmed, and horses have become part of the culture and way of life Vineyards and olive groves have been present celebrated there. Inland, at the northern tip of on the sunny slopes of the Uzège area for over the Gard, are wilder and more remote mountain 2,000 years. Wine making remains a very ranges of the Cévennes. important activity – with ever improving quality levels. The Vin de Pays Duché d’Uzès label Languedoc Roussillon was established in 1989 – and the producers’ is home to one of syndicate have applied for an international France's most recognized “Appellation d’Origine Controlée dynamic cities, (AOC) label. Montpellier (pop. 400,000), which has Uzège borders the part of the the world's oldest Rhône Valley where vineyards continuously operating university. The cities of predominate and the famous Nîmes and Narbonne wear their long history wine of la Côte du Rhône was comfortably while retaining a typically southern, born. It was shipped from the relaxed ambience. Carcassonne combines its Port of Roquemaure to faraway workaday lower town with the medieval Cité, destinations. Today it is home of and further south is Perpignan, the capital of famous AOC wines: Côtes du French Catalonia, one of the most pleasing cities Rhône, Côtes du Rhône Villages, in which to amble about. and the crus of Lirac and Tavel. Wandering across the sun- drenched landscapes, you will discover vineyard-covered plains, the oppidum of Caesar's camp, as well as numerous Romanesque chapels, medieval sites, and picturesque villages. Camargue by the sea Administratively, the Uzège is part of the Gard, a most varied département with distinct geographical and cultural differences, which is flatter, marshier, rice is grown, bulls are lies at the northern tip of Languedoc region. In the south are the Grau du Roi, with nearby La Grande Motte, large bustling Mediterranean seaside tourist resorts in the summer, (the largest marina in Europe) and the Camargue wetlands, which spread into the Bouches-du-Rhône in the east. There the Page 10

© Pierre Guillery/FFI 09/2009 The property THE VILLAGE Aigaliers (population 390) is a typical Uzège Also, as it's important to be able to escape "to" village, 8 km (10 mn) away from Uzès, the city too, the area is within easy reach of comprising 11 hamlets: Aigaliers, Le Chabian, Nimes, Avignon, Montpellier and Marseille - with Domaine de Bruyès, Bourdiguet, Marignac, La Lyon in the North, and the Spanish border in the Bruyerette, Champ de baumes, Foussargues, South only 3 hours away – via: Mas Pontier and Gattigues – where the property is located. • Motorways (Paris/Spain/Italy) in Remoulins (25 mn), or Nîmes (35 mn); • TGV stations (300kmph/186mph high speed train) in Avignon (45 mn) and Nîmes (50 mn); • Int’l airports: Nîmes-Arles (45 mn), Montpellier (70mn), Marseille (11/2 hour). Itineraries The village boasts the ruins of 13th century • From New York, Toronto or Los castle, a restored 11th century church in Angeles: fly to France (13 hours from LA, Gattigues (walking distance from the property) 8 hours from NY) and you land in the – as well as its own village restaurant, luxury early morning. You can either stay for a bed & breakfasts11 and easy access to day in Paris or head South immediately supermarkets (8 mn). (70 mn by plane, or 21/2 hours by high speed train - recommended) - all in all, a Just an hour from anywhere full one day trip; Although protected from the crowds, Uzège is • From London: the more comfortable just an hour's drive from all major option is the high speed train (8 hours transportations. from St Pancras), or you can fly into the two main regional airports (3 hours). Alternatively you can drive down, but that's a 12-hour adventure. THE MAS The Mas André is a South facing authentic (early 19th century) old stone farmhouse offering 300 m² (3,160 sq.ft) of living area, with 4 bedrooms (2 ensuite, including the largest the ground floor), family room, large kitchen, summer/dining room, a staff apartment and small outbuildings, sitting on a 6,400 m² (1.6 acre) walled garden with banks of olive trees (approx. 80), green oaks and rose bushes. 25 km 25 miles Left uninhabited for the last 15 years, the building is sound but in need of renovation. 11 Such as Les sardines aux yeux bleux. Visit their site : www.les-sardines.com Page 11

© Pierre Guillery/FFI 09/2009 Financials RATIONALE The per-share cost is computed in the most Cost breakdown: straight forward manner: total cost of the project, divided by the number of shares. In the Property purchase 567,100€ same way, like in any homeowners association, Legal structure set up 17,000€ the annual maintenance fee is projected as the Renovation 218,800€ total annual cost of running the property, Interior design & furnishing 136,800€ divided up by 8 co-owners. Exteriors & landscaping 69,000€ PER SHARE COST Architects fees 49,600€ Subject to the finalization of the project Miscellaneous 14,200€ development plan (which will be undertaken Banking 19,400€ under the co-owners’ control once the purchase Coordination 93,700€ pool has been assembled), the proposed share price is 165,000€ ($235,600). Other investments 30,000€ Automotive 20,000€ Working assumptions: Referral/marketing 80,000€ Purchase: 530,000€ ($757,000) with Total costs 1,315,600€ additional 7% transaction costs; Cost per 8 shares 164,450€ Renovation: 850€/m² ($113/sq.ft); Interior design & furnishing: 550€/m² MAINTENANCE FEE ($73/sq.ft); Again, subject to the finalization of the project development plan (which will be undertaken Renovated living area: 265 m²; under the co-owners’ control once the purchase Landscaping: 12€/m² ($1.6/sq.ft) for pool has been assembled), the annual 2,000 m²; maintenance fee is 8,400€ ($11,900), payable monthly (700€/$990). Swimming pool: 20,000€ ($28,600); Architects fee: 12% of renovation & landscaping costs; Coordination fee12: 9% of total project cost; Referral & marketing: 10,000€ ($14,300) per share; Illustrative purpose Banking: 3.5% of project cost; Miscellaneous: 3% of project cost. Management & service team The live-in staff takes care of the mas, looks All the above assumptions are open to discussion after the co-owners, and ensures a 100% and questioning by prospective co-owners. hassle-free operation. 12 Fee paid to France Fractional Invest Page 14

© Pierre Guillery/FFI 09/2009 The bilingual team is composed of: DISCOVERY VISITS • A handyman: to take care of the estate Discovery visits are made-to-measure “inspection (including small gardening work), meet the trips” designed to help prospective co-owners co-owners at the airport, and manage the learn about Uzège, discover the environment, hired help; the nearby cities (Avignon, Nîmes), visit a few • A host/hostess: to welcome the co- potential properties, and meet our local owners, look after their needs, and partners in Uzès. provide concierge services. Your visit can be customized to your own needs Maid and gardening service are outsourced; and timeframe. Ideally, the visit lasts 5 days, and the administration is undertaken by FFI on from a Saturday to a Thursday morning. We behalf of the co-owners. organize everything on your behalf (car rentals, 1st-class train tickets, restaurants, hotels, visits) Monthly costs working assumptions: – at a fully inclusive cost starting from Staff: 1,340€ ($1,920) base salary, with 760€ ($1,090) a additional 30% social contributions; day for a party of 2 House management: 1,350€ ($1,980); (3,800€/$5,550). Outdoor management: 500€ ($720); The only thing you have to organize yourself is Management fee: 580€ ($830); the purchase of your round-trip plane ticket home. Just give us the flight number – and we Replacement provision: 500€ ($720); will meet you at the airport! Automotive: 260€ ($380). Expenditure breakdown: Salaries 23,800€ Automotive 3,200€ Rates 6,000€ Materials 22,200€ Other 6,000€ Provision for replacement 6,000€ Total annual expenditures 67,200€ Expenditure per 8 co-owner 8,400€ IMPORTANT NOTE All the cost estimates presented in this document are preliminary. Please note that: Purchase pool members have the opportunity to review all projections before making a commitment; We do our utmost to underspend when doing so is possible without detriment to quality. Page 15

© Pierre Guillery/FFI 09/2009 Process WHERE TO START? If you think you might be interested in becoming a co-owner, you need to make sure you BECOME A CO-OWNER understand fully the proposed model – and that Once you have made the decision to join the this model can truly fit your needs. purchase pool, you are ready to make a commitment and run with it – in a in a step-by- Confirm this is right for you step way: First, you should call Pierre Guillery in Paris to Month 1 – commitment: you ask your ascertain that everything about the concept is lawyer to notify the project notaire of clear to you. Ask all the questions that come to your commitment, and once the your mind. Don’t hesitate; spend all the time that paperwork is taken care of, you wire is necessary; call again and ask other questions 10% of the share cost to the notaire’ – or the same13. Next, you should talk to your account (the deposit). This money is used lawyer to ensure that the proposed legal to pay for the services required to set up structure meets your specific circumstances. the legal structure, some of the coordination fee, and the organization of COME & VISIT the purchase pool (recruitment of 7 additional members); If you are interested in our concept, you may Month 3 – purchase: once the choice of know the area already. the property has been confirmed by all 8 But, as Uzège is bit co-owners, you approve it and wire 40% outside of the “most of the share cost to the notaire’ account to travelled” roads – you cover the purchase cost (including legal may not. That’s why we fees and taxes). Allow 4 months for suggest you should completion of the purchase; organize a discovery Illustrative purpose visit. Month 7 – renovation: following the closing of the purchase, the contractors During that visit, whether it takes place in selected during the previous 2 months January or in June, we guarantee that you will (after the design have been approved by enjoy the smells of the region, discover the city the co-owners) move in – and you wire of Uzès and visit the Mas André in Gattigues. 30% of the share cost to the notaire’ But you will also have the opportunity to meet account; our local partners, including the French “notaire” who will handle the sale, and the US lawyer who Month 11 – completion: once the will design the legal structure for the property. renovation works have been completed, you and your co-owners sign off the project, and you wire the remaining 20% of the share cost to the notaire’ account. 13Get in touch on +33 6 84 34 89 92 – and please don’t forget the time difference! Page 16

© Pierre Guillery/FFI 09/2009 Get-out options Bring in friends & save Once you have committed to the purchase pool, The cost structure includes 10,000€ per co- you have 30 days to change your mind – if you owner (80,000€ in total) to account for the do so, you will be refunded 40% of your recruitment of the purchase pool members. The deposit. assumption is that this money will be used to compensate referral agents – people who help Also, you may get out of the agreement if the recruit co-owners. purchase pool has not been finalized 120 days after you have made your commitment – if you Obviously if you, as a co-owner, can convince do so, you will be refunded 80% of your some of your contacts and friends to join the deposit. purchase pool, you will be entitled to the same “compensation”. In other words, for each new Become the project leader pool member you bring, the cost of your share Should you want to choose the usage periods will be reduced by the aforementioned over other co-owners14, you can “choose your 10,000€. Hence, in theory, if you recruit 7 co- priority” by becoming the project leader. owners, you can reduce the cost of your own share to 95,000€. To become the project leader, you need to commit the money required for the purchase of OUR ROLE the property – obviously that option is only open Using our local contacts, we integrate the best of before the property has been purchased by the French design with the comforts and pool. conveniences that North American owners To illustrate: in the case of Mas André, should expect. We then create the legal and you choose to become the pool leader, you management infrastructure for efficient, cost- would need to put up the full cost of the effective and low-risk fractional ownership. property (circ. 567,000€) – which you will recoup later, from other co-owners. In essence, by doing so, you would “take control” of the project – and thereby get priority on the usage scheme. Resale It is important to remember that the proposed concept is not an investment – rather you should In short, we try to provide every element of treat it as a lifestyle purchase. the second or third home our customers have However, co-owners may decide collectively to always dreamed of owning, in one of the sell the property on the open market. Individual world's most fabulous regions, without the shares (with the attached usage rights and months or years of effort it would take to upkeep duties) may be sold too, like any create it themselves, at a fraction of the cost deeded real estate. of owning it themselves. 14 For example: you want to secure your stay during the full month of July every year. Page 17

Private co-ownership in Provence

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