QU OF NT AT A FE RU

BERMUDA

HOTELS CONCESSION (PINK BEACH HOTEL) ORDER 2015

BR 20 / 2015

WHEREAS Sardis Developments Ltd.(a subsidiary of C12 Global Investments Ltd.) has, on 16 November 2014, resubmitted an application by C12 Global Investments Ltd. dated

23 January 2014 for a hotel concession order under section 3 of the Hotels Concession Act

2000 in respect of the Pink Beach Hotel redevelopment; WHEREAS the Minister responsible for Tourism, having considered the application, is satisfied that the hotel redevelopment is in the national economic interest of Bermuda; The Minister responsible for Tourism, with the written agreement of the Minister of Finance, in exercise of the powers conferred upon him by section 4 of the Hotels Concession Act 2000, makes the following order:

Citation

1 This Order may be cited as the Hotels Concession (Pink Beach Hotel) Order 2015.

Interpretation

2 In this Order— “Act” means the Hotels Concession Act 2000; “hotel” means the Pink Beach Hotel as redeveloped by the hotel developer; “hotel developer” means Sardis Developments Ltd., a company initially incorporated in Bermuda on 14 February 2014 and amalgamated with Pink Beach Hotel Limited on 6 March 2014; “hotel redevelopment” means the Pink Beach Hotel redevelopment described in the hotel developer’s application submitted under section 3 of the Act; “opening date” means the date on which the hotel redevelopment is certified by the Minister to be complete.

HOTELS CONCESSION (PINK BEACH HOTEL) ORDER 2015

3. Concessions

(1) Subject to paragraph 4, the hotel developer shall in respect of the hotel redevelopment be entitled to the following concessions—

(a) full relief from customs duty until a year after the hotel’s opening date in respect of any building materials, furnishings, fixtures and equipment which are necessary for the building, furnishing and equipping of the hotel redevelopment;

(b) for a period beginning with the opening date and ending on the fifth anniversary of that date, full exemption from land tax otherwise payable in respect of the hotel, up to an amount not exceeding $105,977.00 in each year of assessment;

(c) for a period beginning with the opening date and ending on the fifth anniversary of that date, full exemption from hotel occupancy tax (Hotel Occupancy Tax I) otherwise payable in respect of the hotel, for an amount equal to the sum expended by the hotel developer on marketing the hotel redevelopment up to an amount not exceeding $1,200,000.00 in the first year of assessment and up to an amount not exceeding $1,000,000.00 in the remaining four years of assessment;

(d) for a period beginning with the opening date and ending on the fifth anniversary of that date, full exemption from hotel occupancy tax (Hotel Occupancy Tax II) otherwise payable in respect of the hotel, for an amount equal to the sum expended by the hotel on entertainment provided by Bermudian entertainers, up to an amount not exceeding $250,000.00 in each year of assessment;

(e) for a period beginning with the opening date and ending on the fifth anniversary of that date, full exemption from the employer's share of the payroll tax otherwise payable in respect of persons employed by the hotel, for an amount equal to the sum expended by the hotel on training Bermudian employees of the hotel, up to an amount not exceeding $120,000.00 in each year of assessment.

(2) For the purposes of subparagraph (1)(e), the employer's share of payroll tax means that portion of payroll tax which the employer is not entitled to deduct from an employee's wages under section 19 of the Payroll Tax Act 1995.

4. Terms and conditions

(1) To qualify for the full exemption from hotel occupancy tax (Hotel Occupancy Tax I) under paragraph 3(1)(c) the hotel developer must, for the relevant period—

(a) show to the satisfaction of the Minister that sums equal to the amount of the exemption claimed have been expended by the hotel developer on the marketing of the hotel redevelopment;

(b) comply with guidelines on the marketing of the hotel redevelopment issued by the Minister; and

HOTELS CONCESSION (PINK BEACH HOTEL) ORDER 2015

(c) provide an annual audited statement of accounts showing the amounts expended on such marketing.

(2) To qualify for the full exemption from hotel occupancy tax (Hotel Occupancy Tax II) under paragraph 3(1)(d) the hotel developer must, for the relevant period—

(a) show to the satisfaction of the Minister that entertainment has been provided at the hotel by Bermudian entertainers in accordance with guidelines issued by the Minister; and

(b) provide an annual audited statement of accounts showing the amounts expended on such entertainment.

(3) To qualify for the full exemption from the employer’s share of the payroll tax under paragraph 3(1)(e) the hotel developer must, for the relevant period—

(a) comply with guidelines on the training of Bermudian employees issued by the Minister;

(b) satisfy the Minister that appropriate training has been provided in accordance with the guidelines; and

(c) provide an annual audited statement of accounts showing the amounts expended on such training.

(4) In this paragraph, "relevant period" means the period for which the exemption is claimed.

Revocation

5 The Hotels Concession (Pink Beach Club) Order 2013 is revoked.

Made this 27th day of March 2015

Minister of Tourism Development and Transport