CBS Buildings - Workflow of Facilitation Project

• URFS aims at arranging joint sale of the assembled property interests within about 10 months ^{Note 1}. The different stages of the Facilitation Project are as follows:

  Stage One	Stage Two(about 6 months)	Stage Three(about 4 months) Note 1
  Selection of Application	Signing of Facilitation Agreement to reach the Joint Sale Threshold*	Signing of Joint Sale Agreement (URFS will appoint consultants on behalf of the owners, coordinate and monitor the services provided by the consultants and arrange the joint sale by auction or tender)

  * The Joint Sale Threshold
  The Joint Sale Threshold for a particular lot is defined as:
  (A)	90% of the undivided shares Note 2; or
  (B)	(B) 80% of the undivided shares Note 2 if:
  	(I)	each of the units Note 3 on the lot represents more than 10% of all the undivided shares in the lot; or
  	(II)	each of the buildings erected on the lot was issued with an occupation permit at least 50 years before the Project Selection Date.

• Upon the request of all the Participants and subject to URFS’s absolute discretion, the Participants may be allowed one opportunity to put up the assembled interests for joint sale even if the Joint Sale Threshold cannot be reached before the deadline for the Facilitation Project stated in the Facilitation Agreement.
• After reaching Stage Two, an independent valuation consultant will be appointed by URFS on behalf of the Participants to assist them in setting the reserve price and agreeing on the sharing ratios for distribution of the sale proceeds obtained from a successful joint sale. The Participants shall sign a Joint Sale Agreement confirming their agreement to sell their property interests jointly subject to the reserve price and to share the sale proceeds among themselves in accordance with the agreed sharing ratios.
• Property interests covered by the Joint Sale Agreement will be sold in an auction or by tender ^{Note 2} to the purchaser offering the highest bid which attains the reserve price. If the reserve price is not met and upon the request of the Participants who have signed the Joint Sale Agreement, the Joint Sale Services will be terminated.

Note1：	The actual period of time depends on the total number of applications for the Waivers and the removal of alienation restriction required to be processed for the Participants.
Note2：	To be computed in the same manner as described in Paragraph 6(a) of “Submission of Application”.
Note3：	“Unit” means any premises that are described by reference to a specific number of undivided shares in a lot in any instrument registered in the Land Registry.