Dear Sovereign Islands Resident,

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On behalf of The Directors of the Sovereign Islands, we wish to communicate your role and obligations as a member of the Sovereign Islands Community. We trust that you will continue to appreciate and discover our Island community to be engaging, secure and hospitable.

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The purpose of corresponding with you is to outline what it means to be a Sovereign Islands Resident. With pride, we advise, that upon purchase of a Sovereign Islands Home or Lot, you automatically become a member of the Gateway Company and the specific Precinct Company in which you reside. Further, upon signing your contract, the Deed documentation between the Gateway Company, Precinct Company and you as the purchaser, would have been executed.

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What does this mean? As a full member of the respective Companies, you will be required to contribute to the Companies overheads, each ½ year (1st January and the 1st July) by way of Levy contributions charged to each lot. At present, the levies are $784.63 including GST to the Gateway and $ 560.45 inclusive of GST applies to Precincts 3,4,5,& 6 in which you have purchased. These levies are determined by the Board to meet the costs and expenses incurred yearly.

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When are these levy notices issued? Between 6 -8 weeks prior to the 1st January and the 1st July, these levy notices are issued to the resident at the address given by yourselves, at settlement. The Levy notices are issued by our current management company, Capitol.

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What do these levies pay for? The contribution levies made by every member are charged to meet the management, maintenance and upkeep of each Company. Regarding the Sovereign Islands Gateway Company, the levies secure the provision of security services and /or the Security Company to the residents of the Islands. Also the costs of the operation of the Company relating to the use and maintenance of the Night gate, wages, insurance, lease expenses with the Gold Coast City Council over the said piece of land denoted as the Night Gate Lease and all other outgoings payable, and pursuant to the Lease and any incidentals (i.e. electricity, water for toilet and rates) incurred. This company is audited each year and the financials are released to every member at the AGM.

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Regarding the Precinct Company, the contributions are charged to meet the costs, charges and expenses incurred by the respective Precinct Company and are to maintain and continually upkeep the Parks within each precinct. This is inclusive of the cost to replace any trees and plants and any alterations to the landscaping that may be performed. Further, this levy covers the cost of the operation and maintenance of the irrigation, pumping and pond system and equipment. We currently, have contracted with a Landscape company to provide most of these services to you. Further, all costs are incurred and required under the Lease of these Parks with the Gold Coast City Council, which include insurance, rates, water costs and electricity.

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What are the duties of the Management Company? Currently, Capitol BC issue the contribution notice to you half yearly. They maintain your ledger of levies and payments and continually upgrade your details on their Roll, which is then issued to the Board of Directors. The Deeds are held in electronic form with Capitol BC as well as hard copy being held at the registered office of the Companies and in electronic form on the Island. Capital BC maintain “The Owner Information Confirmation Details” so that you are easily contacted. Further, Capitol BC are engaged to manage arrears that may arise. As such, arrears fees are continually charged to you at each stage of the reminder process and / or letter of demand should you choose to ignore these notifications.  Soon after settlement Capitol BC will write to you informing you of their duties performed on behalf of the Directors.

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At this stage and in line with the Deed you have executed, should the arrears in levies exceed one month you will be charged 14%, from the due date of payment:

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“Clause 2. (g) The Buyer further agrees that any levy or part thereof not paid when payable will bear interest from that date of payment at the rate of 14% (fourteen percent) simple interest per annum.”

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Your responsibilities are ongoing as a Full Member of the Companies: It is also timely to mention at this stage that in the future, should you decide to sell your property, it is incumbent on yourselves to insist on a new Deed being signed at contract stage with the new Purchaser. Your obligations under the Deed are continuous until a new Deed is executed and replaced over the said lot. Clearly, this means that you will be expected to pay $25,000-00 for the services provided to the new owner, should they not sign a deed over your Lot at settlement. You the ‘Seller’ in this case, will continue to be liable, even having disposed of the lot.

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“Clause 4 (a). The Buyer further agrees not to sell or dispose of the Lot without first procuring from the Buyer or dispones from him a Deed with The Gateway Company and the Island Company to the effect of this Deed and any documentation entered into pursuant to Clause 3 of this Deed.  In default, the Buyer agrees to pay to the Gateway Company upon demand $15,000.00 and the Island Company $10,000.00 for breach of this Clause.

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Clause 4. (d)    The Buyer further accepts and acknowledges that in the event of default under this Clause he shall remain responsible for the payments in respect to which he has contracted liability set out in this Deed notwithstanding that he has disposed of the Lot.”

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Whilst in no way are the above information points exhaustive, we trust that we have imparted to you many of the specific points relative to living on the Sovereign Islands.

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AGM: Annual General Meeting of the Companies will be held in accordance with the provisions of the Corporations Law 2001.  At this meeting the Audited Financials of the Companies will be available and the achievements of the Directors, since they took over the Companies on the 9th December 2016, will be outlined. Further information will be advised, throughout the year.

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Our mission is simple, “Make The Sovereign Islands Majestic,” this will be achieved with the participation of all Sovereign residents. Should you wish to discuss any information pursuant to this letter, please contact 

Yours faithfully,

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Ann Glenister: OAM J.P (Qual)

Chairman / Director.