As is common in the Phuket property market, all villa buyers at Luna Phuket own their villa home in entirety, then sign a 30 year lease for the land. The lease includes the right for all villa owners to use the common areas together. Villa buyers also receive, at no extra cost, the right to renew their land leases for 30 more years upon the expiration of the prior lease. two options to renew for a further 30 years on each renewal at no cost. The effect is a concurrent leasing period of 90 years. All leases are with Luna Phase One Company Ltd. a Thai company which is the owner of the Luna Project lands.

The buyers also receive shares in Top East Co. Ltd. a Hong Kong corporation which owns the controlling interest in Luna Phase One Company Ltd. At the completion of the project all shares of Luna Phase One Owners Corporation will be owned by the lessees in the project effectively giving them total control for renewals and collectively controlling the freehold of the development.

The first step in buying your Luna Phuket Garden Villa is to choose a plot and Villa style. To secure your choice, you then sign a Reservation Agreement and pay a reservation fee of 2% of the purchase price.

In order to proceed you will then sign the following contracts within one month:

1. A 30 year Lease Contract for the land, with options to renew for a further two terms of 30 years each (giving a total of 90 years).

   This Lease Contract contains the right to use all common areas and an undertaking to maintain both the leased land and your own Villa and to pay your share of the maintenance of the common areas and services.

   The signed Lease Contract is then registered with the Land Department in your own name, giving you total security over the land upon which your Villa is constructed .

2. An agreement to subscribe to the shares in the offshore company. The shares are transferred when the project is complete, which effectively gives control to the Lessees over the land ownership and any and all renewals of the lease and all common areas.

3. A Villa Purchase Agreement whereby the developer agrees to deliver the Villa as contracted.

4. A Maintenance Agreement with respect to the common areas and services to be provided.

5. The Estate Rules.

The "Purchaser" agrees to make Progress Payments to the "Vendor" as follows:

First Mobilization Payment: To be paid upon the signing of the contracts and no later than 30 days from the date of execution of the Reservation Agreement, said 30 day time period can be extended by mutual consent of the parties hereto but it is mutually agreed and understood that any aforementioned agreement to extend shall not exceed 90 days from the date of execution of the Reservation Agreement. This Payment shall be twenty five per cent (25%) of the purchase price plus any variations agreed to by the parties.

Second Payment: To be paid when the Project Manager certifies that the foundations and beam works are complete. This Payment shall be twenty five per cent (25 %) of the purchase price plus any variations agreed to by the parties.

Third Payment: To be paid when the Project Manager certifies that the roof structure is complete. This Payment shall be twenty per cent (20 %) of the purchase price plus any variations agreed to by the parties.

Fourth Payment: To be paid when the Project Manager certifies that roof tiles work and purlins are complete. This Payment shall be ten per cent (10 %) of the purchase price plus any variations agreed to by the parties.

Fifth Payment: To be paid when the Project Manager certifies the completion of the door and window installation work. This Payment shall be ten per cent (10 %) of the purchase price plus any variations agreed to by the parties.

Sixth Payment: To be paid when the Project Manager certifies the completion of the electrical and plumbing work, floor finishes, sanitary fixtures, landscape and final clean up ready for occupation. This Payment shall be ten per cent (10 %) of the purchase price plus any variations agreed to by the parties.