Meeting With IPI On 2 July 2009

[Disclaimer: This is a very partial translation of original notes in Dutch, available on MONDI website, and there is no guarantee that this is an accurate translation of the original]

Present
IPI Henri Drall, Jurgen Oddens and Maxim of of the Togt were.
Mondi Rob Smulders represented
Investors Francis Rademaker and Ms Carola

History
Originally a construction project of ell Mohanad Real Estate, but organisation, the management and the finances were not great shape. IPI agreed with Ell Mohanad, to develop the Zafarana Beach Resort.

Ownership
At Marsa Alam project IPI owns the land but at Zafarana Beach Resort Ell Mohanad Real Estate is the main assignee, constituent and builder, as well as (partial) landlord.

Architectural testing/technical oplevering
Due to recent construction problems Ell Mohanad has appointed new subcontractors. To guarantee the structure, IPI with have agreed on the work schedule with Ell Mohanad and that no ad hoc changes are to be made. Investors will get at least one month notice of handover..

Final date of opening
IPI will be offering free inspection / snagging, and will provide more detail nearer the completion and handover dates

Supervision of construction
Ell Mohanad has been dragging it’s feet with regard to discussions on construction planning. IPI to intensify pressure on Ell Mohanad to ensure construction is well managed and on schedule, and to specification.

Specification
IPI plan to take close-up photos and provide technical descriptions to inform investors of the quality of finish, materials used, etc.

Guarantee, maintenance and repairing
IPI committed to high quality and standards – and defects, poor workmanship, etc will not be accepted and will be rectified. Pre-handover inspections reports (listing all defects, etc) of apartments by IPI will be given to Ell Mohanad. A copy of this will be provided to owners. IPI are prepared to carry out final inspection and snagging on behalf of owners free of charge.

Once the resort is up and running, the agreed maintenance period will be in line with the rental period of 5 years. There will be a construction guarantee of 10 years, which will be incorporated into the final paperwork.

Thermo Shield
Because there has been no distributor of Thermo Shield in Egypt for the last 2 years, another equivalent product has been chosen. IPI have asked Lord Rademaker to source a replacement product of similar properties, and he will soon submit a report on this. Meanwhile a number of investors who visited the resort have given positive feedback about the temperatures inside apartments.

So far visitors have confirmed (including those visiting during summer), that the temperature inside the apartments was cool despite there being no air conditioning.

Modifications in construction Of a number of apartment block the access to the portico which is himself now on the gallery, will be moved to the they side, so that less undesirable holdup for privé-ingangen will arise. Because of this the access of visitors in the kicking house will take place, instead of for privé-ingangen on the galleries.

IPI will ensure that the drawing of the resort to be adapted with facilities being schematically positioned on the plan. An administrative office will be established where owners without rental agreement can buy letting, administrative and financial services. Hotel owners without rental guarantee will contribution 50 euro per month to ensure the apartments are kept in good condition. The 50 euro, among other things will cover cleaning, security, maintenance and insurance. This amount stands pay exploitation costs apart from at a later stage

Reporting definite An environment study of the Egyptische authorities hasopleverdata conducted that there had be chosen for floating or wharf to 2e the reef. The sea, at a low water cog, mechanically is weed of stones and other one dead material, as well as the range.

Wearing water shoes at all times is recommended.

IPI assured that no building will be built between block C and the hotel, and nothing will be done to obstruct uninterrupted views of the sea. The activity centre will be to the extreme right of the resort, and nearby will be the diving school, amphitheatre and the beach restaurant. Sport activities such as beach-volleybal will be organised near the top of block C. To compensate for the loss of the large salt water swimming pool the swimming pool by the blocks F, G and H will be made larger than originally planned. It will have a large terrace with more facilities than the walk-in pool by the hotel.

After completion of the resort owners (or their representatives) will have use of a free transfer by shuttle bus. This service has to be booked 3 months in advance, so that IPI can make the necessary arrangements, and to avoid unexpected misunderstandings or problems. Because the opleveringsdatum have led strongly, IPI is willing to discuss the question of the weeks of personal use which could not be incorporated in the first years, and will raise this issue again soon. (the rest of the report is just an unedited translation from Yahoo Babelfish Translate)

Translated property proof
Given the construction status of the construction at this moment, is do belong to it legal reasons/statutory regulations not yet possible the owner eigenaren the translated property proofs. The ratified contract is according to IPI up to that time sufficient proof that the investors an apartment of ell has bought Mohanad. As soon as all individual owner eigenaren has accepted the apartments, by block-system/hotel wing an association of owner eigenaren is founded. Each block-system chooses then a so-called block-system representative, who will take meeting on behalf of its/its block-system in the central VVE. Concept statutes for VVE hope be able provide 2 months IPI. At present a first concept version is legally reviewed.

Interactive Internet site/home video
Zafarana Beach Resort IPI have had internal problems with regard to its Internet site management, as a result of which the interactive part of its Internet site is unfortunately not yet active. For the solution of this problem it is worked. Toch it according to the expectations still a number of weeks will last, before investors might the home video of the resort contemplate. Composing and sending newsletters are for IPI a time-consuming matter. The wheel group has recommended IPI for this reason, beside 6 a weekly newsletter, to the investors (two) weekly digital sending nieuwsflits, with in this in twinge words the most important developments of that period. None extended news therefore, but short update as a result of which investors are informed concerning the progress.

Price increase fall
Just like in the past at Zafarana Beach Resort case was, will raise IPI the prices of apartments on Marsa Alam Beach Resort soon. As a result, there is talk of a price increase. This does not involve however that talk would be of a value fall of the apartments on Zafarana Beach Resort. The question United Kingdom, which is related to several forums state to read to the end, to privé-situatie and stands in relation with which development thus. The wheel group believes that privézaken also effectively private to belong remain. The value which to the apartments will be possible is granted, is of course dependent on the assessment between supply and demand, but just like in the Netherlands, among others also of for example prices of simultaneous apartments in the same region or area.

Vragen-/opmerkingen, etc.
In May IPI have answered a large number of questions in a high tempo. Given answer some IPI were for the wheel group reason IPI invite for a conversation, which has taken place on 2 July last. It was a frank and constructive conversation, where also reciprocal irritations have not will from the way, but in which everyone established itself constructively, on a number of points more to create clarity. All investors have the possibility questions and/or of placing observations on private Mondi-forum. Mondi present all not yet more earlier asked/answered questions regularly to IPI, with the request answer these within 14 days. Questions and answers MONDI are archived and are registered. At this moment investors there no less than 263 are who regularly on Mondi-forum log in. That at present still but little questions/observations are placed, consider the wheel group as a good sign; if a indicator of returning rest and faith, which undoubtedly a positive impact on the resort, the investments and cooperation.

Hangpunten, on which will be come in the short term - IPI
construction planning/- specifications - IPI/F. Rademaker
Thermo Shield - F. Rademaker
Weeks personal use - IPI
VVE - IPI
Interactive Internet site IPI

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