Yoma acquiring an 80% interest in the land development rights of the entire site which houses the Proposed Hotel Development and an application has been submitted to the relevant authorities for the issue of a new leasehold title which would include the land where the Proposed Hotel Development is situated.

Under the [heads of agreement], [The Hongkong and Shanghai Hotels, Limited] has agreed to subscribe for a 70% majority interest in the joint venture to be set up with Yoma and its other designated affiliate(s) to jointly re-develop the Building into a Peninsula hotel. The parties are still working on the financial commitment of each party in respect of the purchase of the land development rights of the Building and re-development costs prior to the signing of the binding agreements. The parties also agreed that a subsidiary of [The Hongkong and Shanghai Hotels, Limited] would enter into a management agreement to manage the Proposed Hotel Development.