Rios Hotel Management Ltd. has been operating the Ciboney Resort in Ocho Rios as Beaches Grande Sport Resort and Spa from September 1, 2000 under a lease with an option to purchase from Ciboney Group. This option has been exercised by Rios. The sale price of the Resort is US$17.5M and Rios has paid a 15% deposit of US$2.625M from which stamp duty and transfer tax of J$107M has been paid. Rios has not yet obtained financing for the balance of the purchase price of US$14.875M and in order to secure payment have granted Ciboney a 5 year Vendor’s mortgage at 12.5%. The Directors have agreed to accept this mortgage which will provide for the full payment at any time without penalty.