Property Book Section 5

BENEFITS UNIVERSAL OWNERSHIP BENEFITS

BAHA MAR IS A FABULOUS OASIS OF CHIC situated at arguably the most beautiful and desirable address in the world.

The benefits of owning here go well beyond the exquisite setting.

• Deeded, freehold ownership in perpetuity • Buyer and dependents are eligible for permanent residence status in The Bahamas • Permanent Bahamian residents can enjoy visa-free travel to The Bahamas • Pathway to citizenship after required period of permanent residency • Optional rental program • Access to The Baha Mar Residence Club

• No income tax, no capital gains tax, no inheritance tax • Annual property tax exemption period applies while owner is in The Baha Mar Rental Program • Import duties, taxes and levies are waived for buyers who elect to participate in The Baha Mar Rental Program • Eligible to engage in private offshore banking in The Bahamas

LOCAL EXCURSIONS

GOLF TEE TIMES

DINNER RESERVATIONS

SPA BOOKINGS

Residence Club Benefits Owners enrolled in The Baha Mar Residence

The concierge will also alert owners of exclusive

Club enjoy Bespoke Concierge Service. The

offers from partners such as car rental agencies,

personal concierge can book tee times, make

cruise companies and high-end retailers.

dinner reservations, arrange spa bookings and organize local excursions prior to your arrival.

BENEFITS | 61

THE BAHA MAR RENTAL PROGRAM

Rental Program Benefits Owners not participating in The Baha Mar

Should you desire to rent your home,

Rental Program may occupy their home up to

The Baha Mar Rental Program managed by

365 days a year. Owners are also welcome

The Baha Mar Residence Club will assist you

to invite guests and rent the property

with finding the perfect tenant. All owners

themselves, however, they must provide

have the option of placing their residence

The Baha Mar Residence Club with guest

into the program. The hotel within which the

names and use dates. All owners may opt

residence is situated will actively place it in

to join The Baha Mar Residence Club to

its Central Reservations System and make it

enjoy reduced fees for concierge and

available for rent as part of room inventory.

related services.

In addition to the rental efforts that will be made by the hotel, The Baha Mar Residence Club has contracted with a number of third

party vacation property rental companies

construction and out-fitting of the residence

to provide additional rental channels and

are waived for buyers who elect at time of

maximize the likelihood of success. Benefits

purchase to participate in The Rental Program.

include tracking of the owner’s rental activity

These waivers amount to a discount of

and regular statements to keep owners

approximately 25% of the purchase price.

informed of their rental activity. In addition to other tax benefits, owners participating in The Baha Mar Rental Program also enjoy no income tax on rental proceeds and all annual property taxes are waived for owners as long as they remain in The Rental Program. Lastly, import duties, levies and taxes related to the

Owners choosing to participate in The Baha Mar Rental Program can enjoy up to 90 days of personal use per annum. They rent their residences through The Baha Mar Residence Club’s extensive network for a minimum of nine months and maximum of 12 months.

BENEFITS | 63

THE PURCHASE PROCESS

CONTRACT PROCESSING To reserve a preferred residence, future

If the purchase is cancelled within this period,

owners must sign initial documents and

owners receive a full refund of their good faith

make a $5,000 good faith deposit.

deposit. If owners choose to proceed with the

They’ll then receive all relevant legal

purchase, they must sign additional documents

documents electronically. A 14-day

after the rescission period and arrange for

rescission period allows time to

initial payment. At Closing, owners sign all

adequately review all documents.

final documents to conclude full conveyance.

Payment Terms include: • 10% of the purchase price must be

• An additional 10% of the purchase price must

wire transferred directly into a Citibank

be paid into the Citibank escrow account

(New York) escrow account within 30 days

within 90 days of contract signing.

of contract signing.

• The final 70% of the purchase price must be

• An additional 10% of the purchase price must

wired into the Citibank escrow account within

be paid into the Citibank escrow account

30 days of notification that the residence is

within 60 days of contract signing.

ready for Conveyance (Closing).

All deposits will be held in the Citibank escrow account untouched by the developer until Closing. In the unlikely event the developer does not deliver the residence as contracted, all deposits plus accrued interest will be refunded to the buyer.

FINANCE OPTIONS Buyers may obtain their own financing if they wish,

THESE INCLU DE:

or pay all-cash. The developer has secured two

• Royal Bank of Canada

internationally-respected banking institutions who

• CIBC First Caribbean International Bank

have agreed to lend up to 70% of the purchase price.

CLOSING When Baha Mar is ready to proceed to

well as half of the government mandated 10%

Closing, the escrow agent will notify the

Stamp Tax payable for the transfer of all real

buyer, giving them 30 days in which to

property. The buyer will only be required to

transfer the remaining balance of the

pay his half of the 10% Stamp Tax, plus legal

purchase price. Baha Mar will pay all legal

fees if the buyer wishes to have additional

costs, registration and title insurance costs as

legal representation.

THE PURCHASE PROCESS | 65

DEVELOPMENT OVERVIEW

The Bahamian Riviera, Nassau, New Providence, The Bahamas

ESTIM ATED COMPLE TI O N DATE

December 2014

DEVELOPER

Baha Mar Ltd.

ARCHITEC T

Michael Hong Architects, Los Angeles, CA

INTERI OR DESIGN

Dianna Wong Architecture + Interior Design – Los Angeles, CA

Benjamin Noriega Ortiz – New York, NY

Kravitz Design – New York, NY

Todd-Avery Lenahan – Las Vegas, NV

ESCROW AGENT

Citibank – New York, NY

LO C ATI O N

CLOSIN G AT TORNEYS Higgs & Johnson (paid by the developer)

Baha Mar can recommend a Closing attorney for the buyer if the buyer wishes additional personal legal representation (these fees paid by the buyer).

GENER AL CO NTR AC TOR China State Construction and Engineering Corporation,

Peoples Republic of China PROJEC T FU N D IN G Export-Import Bank of China,

Peoples Republic of China TITLE H OLDERS Up to four per deed, but only one family can apply for

permanent residency. Owners can purchase in corporate partnership or LLC name, but will not receive permanent residency eligibility in this instance.

DEVELOPMENT OVERVIEW | 65

bahamar.com residences @bahamar.com

These materials do not constitute an offer to sell, nor a solicitation of an offer to buy, to residents or citizens of any jurisdiction (including the United States of America) in which registration or other legal requirements in such jurisdiction have not been fulfilled. All illustrations are artists’ conceptual renderings (or photographs included for illustrative purposes) that may not reflect the project or residences as currently designed or as may ultimately be constructed and are subject to change without notice. The Baha Mar project is owned, offered, marketed, sold, constructed and developed by Baha Mar Ltd. (“Developer”) NOT by Rosewood Hotels and Resorts, L.L.C.; Morgans Hotel Group Management LLC; or Hyatt Corporation; or any of their affiliates (collectively, the “Brands” and individually as “Brand”).

All registered trademarks, trade names, and photos and product / facility depictions (collectively “Intellectual Property”) of the respective Brands are owned by each Brand, as applicable, and such Intellectual Property has been included for illustrative purposes only. Developer has entered into a Marketing License Agreement with each Brand pursuant to which Developer has the right to offer and sell residential units in a development to be known as the “Grand Hyatt at Baha Mar”; “Rosewood at Baha Mar”, and “Mondrian at Baha Mar” respectively (the “Residences Component”) using the name “Hyatt,”, “Rosewood, and / or “Mondrian” respectively together with certain trademarks and Intellectual Property which are owned by, licensed to, utilized by, or otherwise associated with the Brands (collectively, the “Brand Trademarks”).

Additionally, Developer and Brands have entered into a series of contractual agreements (collectively, the “Residential Agreements”) pursuant to which Brands will (i) oversee and supervise the operation of the Residences Component on behalf of the Developer and (ii) allow the Brand Trademarks to be used in connection with the branding and operation of the Residences Component. The Brand Trademarks will not be associated with the Residences Component, or any residential unit situated within the Residences Component, upon termination of the Residential Agreements for any reason whatsoever. If the Residential Agreements are terminated, the Residences Component will be required to cease using the Brand Trademarks. Accordingly, a purchaser should not acquire a unit within the Residences Component with the expectation that the Brand Trademarks will continue to be associated with the Residences component during his or her entire period of ownership. The right and license to use the Brand Trademarks is not part of the common premises or otherwise included in the purchase of any unit within the Residences Component. Neither any purchaser of any residential unit, nor any community association constituted with respect to the Residences Component or any segment thereof, shall have any right, title or interest in and to the name “Hyatt”; “Rosewood” and / or “Mondrian” respectively or any of the Brand Trademarks.

There exists no joint venture, joint enterprise, partnership, ownership or similar relationship between the Developer and any of the Brands as to the Hotel or the Residences. The Brands have no ownership interest in the Residences Component. The Brands do not have any responsibility for the offering, marketing, sale or solicitation of units within the Residences Component.

The Brands are not responsible for construction of the Residences component, obtaining required permits, licenses and approvals to develop the Residences Component and sell units within the Residences Component, or ensuring that the units within the Residences Component are sold in accordance with applicable laws, codes, ordinances and other governmental requirements. Under no circumstances shall the Brands be deemed to have made any representation or warranty to any purchaser of a unit within the Residences Component with regard to the foregoing matters or any other matter whatsoever. The Brand’s retention and exercise of rights of approval or inspection with respect to the marketing and sale of units within the Residences Component are for the sole purpose of protecting the reputation and integrity of the Brands’ Trademarks.

Any purchase of a Residence should be for personal use and enjoyment and should be without reliance upon any potential for future profit, any rental income potential, economic or tax advantages, appreciation, depreciation or investment potential that may or may not be derived or realized from the ownership of a Residence, or any monetary or financial advantage with respect thereto or from voluntary participation in the Rental Program.