D;1@3 3.11.7.
Wr= OF FPJ3CG'fG 3:-.aNM OPEPATICK
1. Founded in Amsterdam and activities
DZ= 3.V. founded with an office in Amster-dam to provide loans to
Group Ccapanles, to customers of these Ccmpanies and possibly, in the
future, to Ccwn-anies active in the saw sphere; for the monem, all-
are resident in the U.S.A.
2. Branch in
It has an office in Fribourg, Switzerland, in the fo= of a Branch
wach carries out the activities Aasc-zibed ir nam 1.
3. New activities Arsterdam
There is discassim going an at the --cment to introduce finax%cial
activities in the Amsterdam oflice.
4. Control of Friboura- activities
The Amsterdam eftice (Board of Direct-ors of LVISCO B.V. - 2 S=
. er-
visory and 2 MuL.-agement) c==ls and approves Financial a=ivities
of the Fribourg Of fice. ajarterly meetings are held In Amstardam at
which the General Manager of the Fx".@ Branch presents his rooort
for the period -whidi has past a-A for the period of the fore=st.
S. Hwck= of Toana
7he Fribourg Office is infoxmed my t.-A PreziftTC Pf Dv= B.V.
(.wA---hft,s Gle=) of row Tcwna to be mods %ftch win be
either in a Revolvim Credit Miter= Credit Note - together with
a Credit and TL-=, Loan Agreement, leaving dom the conditions of the
rQ
Loan) already negotiated with t:@e C=any or new low= will be made
C)
BAT Industries document for Province of British Columbia 13 April 1999

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S. of Loans (continued)
on a simple Nozee, supported. wit@h a Credit and Term Loan Agreement.
In addition for small Loans these have been rade on a 'Pr=ssory
Note only. Periods of Loans may extend from 2 to 10 years, with
rights of exte-n-sions.
6. Currency for Loans
AU Loans are made in U.S. Dollars.
7. Interest on Loans
Interest is padd monthly, into the Fribourg Branch, Bank Account
in the U.S.A. and is lowAd to Borrowers of tne Grou? through their
Pavolving Credit Notes. A few Loans are related to Pr-'-e Rate for
Interest but for the grearest part them are rAgotiated annually in
January -
8 . Additional Capital for Loans
F=m t2re to tiae additional Capital for MWL4Mq Loans is given by
110-3M B.V. to the Ftibaixg Office (this =wy has been r alved In
the first instance !r= DP= Ltd.)
9 . Taxation.
90% of the Profits made in FribaaV are taxed there (the other 101 in
kntar&w. ite rate is in. the re#m of 101 but bwmn of the delq
factor, and Swofits increasing w=wny, the fono" wgwiwas has
oc=wred.
C:)
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BAT Industries document for Province of British Columbia 13 April 1999

-%m 3
9. Taxaticn (continued)
1981 - 8.6%
1982 - - (Year c@,Arqed frcm 31 st December to 31 st March)
1983 - 3.5%
1984 - 3.4%
1985 - 3.7%
1986 - 2.5%
OuTency Dr-lange Differences are not taxable in either Folland or
Switzerland.
Fribo=q, 9th July, 1985
jd1n D. MROAB
C'e=al MWAger
C:p
r1Q
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BAT Industries document for Province of British Columbia 13 April 1999