k, THE PARASOL PARTICIPATIONS LIMITED AND THE DISPOSAL OF SHARES PURSUANT TO AN ACQUISITION DATED AUGUST, 2006 AFFIDAVIT 0F SCOT GORDON YOUNG I, GORDON YOUNG, currently residing at 3467 Noflh Moorings Way. Coconut Grove, Miami, Florida' 33"} MAR OATH and says as follows: I am 44 years old and was born in Dundbc, Scotland on 10"" January, I962. 1 am married with two children and have been married for over IS years, 2 For most or my married life i have iimi in Dondon and Oxfordshire. i am an entrepreneur over in: years up and acquired number of Icsidenlial and commercinl pmperty technology business iniemsis principally in the United 3' i am cumniiy residing in Miami, Florida my family, having movzd here the and II had been our intention in ralncale (nth: Uniled sum for some yams m, as a resull or m: occurring in my life in March. 2006 and subseqnamiy, i no longer know whether ma: Will be possible or we will have in return to the United Kingdom. II will very much mm on in: oulwmc of cum! mm and my resolving or miligaling my prescnl financial difficulties, which are extreme and have lefi me insolvent. page i oi i7 The deal I agreed wiilr Mr Fomichev was as fallows: usmrs million for H1: Shares and a lam facility of up Io USSllellion. wem to Moscow in or around Mamh, 2006 and nppoimed Knight Frank in Musww undenalre rlre inilial due diligenee. I also appoinled Fax Williams, solicitors, undermke Lhe necessary legal due diligence, liaising with legal eaurrsel both in Cygnus as well as Moscow, I also asked rhem to prepare an investmenl pack so that I could raise the necessary funds. This was updated from lime re limc, have anaeired as Exhibit "5sz" an example of'hc invesrrnenr pack of malaria! ma! may put updamd as a! November 2005 (the Yuck). The first pack was produced in or around July, sum-m magma-m l7. (D The All of th: Shams End the Loan Facility were ultimately funded by lb: following Investors Ind [he basis on which thzy did so is sel out in "it relcvanl Investor Fil: mferred in ma Agreement. I have lisud below the lnvesmrs. Ih: relevant person(s) In whom 1 introduced me Project and {mm whom i snughl and/or loans und [he basis on which Illa (Elevam lnvesxor :mitics ultimately and/m made loan advancss, Alihough may are all described as Investors, some made investinan in Ih: Vandor companies by way ofa long (arm loan and/or aqnity in 1h: relevam Vendor company with a view acquiring indimx lnlercsl in me Slums Olhus made a short ~lenll inan to me and/Dr use Vandor company which. following my default in rapaymcm. [hen nsulied in the Investor having security over |hal Vendor company or its shares and [hereby securing me inleresl held by the Vendor Company in ihe Shares far that lnvfilor. I have classified these below, thereforz, as th: Share and Loan Defaulm inmmr Conuct pemn Nature oi inves'lmenl (3 Sim: or Loan Dchuu) Camms: Limimi Kayl-- Share AND Loan Dehuli Spmizlily Icnmhan Brown] Share lnvest'muil Finance Limned Siephan David lanes (Sirverwing) Pagesom Ternares Real But: Poju Share lnveslnienr Liuriled -- (ram-res) Legal Eq'ul'ublc Harvey lawrenee Loan Default Securlries ple (Legal or Equitable) 1 also secured a loan initially rrorn anoiher business user, 'ate I have described this in runherdelail in paragraph 20 below and refer to this as the Uuunrned Investor Loon The loan was ralren on aeoonnt in pay the advance amounts for the purehase or the Shares and lire Loan ny with security against rhe proposed Vendor company inierests. The individual lender has requested the she remain anonymous far lhe purposes orlhis Affidavit and have referred lo her as ilre Unnamed luvesror. It was a shon--lenn loan and 1 am now in default of rhat loan but that loan and in repayment has heen assumed by Solar Breeze in favour of the sv Relinonee Foundadon as referred to in paragraph 19.4 below (and whiehl understand ha been set up for ehe purpose the henefit of that loan) Investment monies ls. cannot recollect precisely how much i arranged [0 pay and when lo Mr Fomichev and Parasol from July 1005 '0 the eventual closing ofdle msaclion on 16" January, 2006 (the Closlng Dare). A considerable number cf the paymems were advance payments made prior to file Closing Date, even though the formal paperiwork had nor been signed The money cam: from various acwums and a! various limu, being ofien bridge finaneed and [hell refinaneed will. Investors' money. 1 simply did not have the money and was ofien mumbling around to gel just enough money in to keep the deal alive. I have read Mr Fornichey's proposed starernenl artached as Exhibit lo the Agreement and, whilst have nor verified whar he says from my own mards. have no reason to believe than, anything snared is incorrecL Whilst I cannot link money mnsfers 1 made (or arranged to be made) from um statement to (he actual investmem attributed lo the I believe when, how much, fmril whom and on ammum which Vendor eornpuny was as follows: svamm-<B Sbare purchase monies No Date. (estimated if Amount Investor and source accouDt not known) July,2005 I Vendor dompany's us$2.000,000 Solar Silverwing Speciality Finance Breeze Limited Limited July, 2005 us$2,000,000 Camrose Limited Golden Lake Limited /lrdesawood Limited J September,2005 us$3,000,000 Solar Silvenving Speciality Finance Breeze Limited Limited 4 November,2005 ) 176 January, 2006 us$1,944,041 us$5,000,000 Personal loan /funds Solar (Unnamed Investor) Limited Tamares Real Estate Canyonrose Limited/ Limited Tamares Brr.r-zr, CaPital Foundation 6 26t January,2006 us$5,326,500 (f3,000,000) Camrose Limited Lak e Golden Limited/.Mesawood Limited Total SYMutdihl6 06 2O6(RdbedXO?a) {a us$l9,270,041 Page 7 ol 17 No Date Amonnl Investor account! 7 assummnn Solar 3mm (Unnamed Limixed a Deccmberlflos Personallaln/{unds Solar Emu (Unnamed Limited 9 25mlanunry,2006 Leguldquuvmble (paid 16'" March, (Hmong) and zoos) Jaggevsfizld Total msg#55500 (Th: dlficrences 1n xhe [ovals staled in Mr Famichev's 21nd lhase slated ahave ar: explained by bank transfer charges.) man-< Fags of \7 "M'lumfi 19/ Page '3 o( 17 Mammal 22, In consequence of the abov: events, and the exercise of are various security inlercss, I undersumd [he inlerefls now by the in (he Vandor companics can be summarised as fellows: Investur Vendor company Nature Cmu'os: Luke Golden and Mesawood 1an :0 Lake Goldcn and Mcsawood under an epllon arrangement and ?3 million charge over securhy Silverwmg Solar Buzz: loan under loan and opiion agreement Trmam Canyanmse [clan under loan and ay|ian agreement Legal a Equimbl: Jaggusmm "395.000 charge ave! securities LImilad and and infarmal option armngemem with Wilshaw Unnamed Lrwesror Solar Ema: USSMMAJMI svuumummwlaml :2 Tank ?4,995,000 Page 17 Paws-m IN THE MATTER OF PARASOL PARTICIPATIONS LI]VIITED AND T 'N DISPOSAL OF B SHARES PURSUANT TO AN ACQUISITION AGREEMENTDATED AUGUST' 2006 DffiIBIT *SGY2" This is the exhibit marked dated *SGY2' and referred to in the affidavit of Scot Gordon Young 2006 Sworn by Scot Gordon Young At This daY of 2006 Before me Notary /Commissioner for Oaths Ib 0 mass m_ss 101 Corporate Structure The corporate strucrure holding the Project will be as sel out below: Parasol ParticiPations Limited (Cpriot Holding CompanY) PROJECT D.DGP.YI0.l4l_5{ LI FenSrcuW STUDY OF OFFTCE SPACE DEVELoPMENT AT THE PRoPOSED SrfE Table 1. Preliminary project implementation schedule . o o Prcparation of working documcntation; Dcmolition, stan-uP; Eanhworks(excavation). Construclion commcnccmcnt (bclorv ground of thc stilobat (commoo basenrent parr ofthe complex) and phase I ofthe Proicct) . .Jt--E . d;"* bt t[" Sate Commissioo of phasc Conrmenccmcnt of I ph!!9.q_- . Oclivery ofphase [l ;- tr*Todbtrlre state Comnrission of phase . Delivcry of Phasc lll market in 3 phases (please see We assume, the office use of the project will be delivered to the Table 2) Table 2. Q 1 2008 35,940 sq m Phase 2 Q 1 2009 85,086 sq m Phase 3 Q 1 2010 27,150 sq m Phase 1 0S[4Chl0-BblCTABOt Hb! trlO n AfiPEey yfi. z-f, IlEB{Tp Xffi MYIK0B sam,K0CTAH$OBA Jtr.4. SBEFtffiroAe KAfi, BJI. L2 $4 PEfln P0EKTH bl E n P0PA60TKI4 ffi r.MocKea 2005 NP IA MEP bI cTnn+cTr4L{ECKI4X PEIIJEHI^h 14HTEPbEPOB KOMNNEKCA OO14CHO.BbICTABOLIHbI14 I]EHTP X14MI,1 KOB NU. 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