Living Investments UK14 Greville StreetLondon EC1N 8SBT: +44 (0) 207 250 1256F: +44 (0) 207 900 6110E: info@livinginvestmentsuk.comwww.livinginvestmentsuk.com

Title Trustees International Limited5 Priory Court, Tuscam Way, Camberley, Surrey, GU15 3YX T: +44 (0) 1276 482015/16F: +44 (0) 1276 675085E: enquiries@titletrustees.com www.titletrustees.com

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Introduction to Living Investments UK Living Investments UK is an alternative investment company based in the City of London. As a company wehave established a working relationship with Title Trustees International, a UK trust company, and with themhave appointed TTI LI Title Limited (TTI) to hold the head leases on a number of our projects in order to provide a level of investor protection.

As a company we offer real asset investments to sophisticated clients from both the corporate and privatesectors centered around commercially valuable Teak hardwood. Clients are also able to establish and buildin-house investment portfolios with ourselves through complimentary areas from a variety of agriculturalcrops within the ethical sector. Clients are attracted to this easily accessible market, not just for the provenlevels of both capital and income returns available, but also for the purposes of hedging against inflation. Investing in Teak is generally regarded as a safe and low-risk market and can help to balance prudent investment portfolios. Just as clients invest in gold in times of uncertainty, other commodities, such as timber,attract investors who are looking for a ‘safe home’ for their monies. We strongly feel that the majority ofinvestors should consider directing a percentage of their available funds into this market, in order to ‘reap’the many benefits which it provides.

The Opportunity The timber market has traditionally been largely dominated by both institutional and large wealthy investors,interested in reaping strong financial returns from the direct and tangible ownership in Teak forestry investment. Previously, individual investors have generally had to invest a minimum of £450,000, and in manycases many millions, to access this lucrative market. At Living Investments UK we offer private investors theopportunity to invest in semi-mature Teak trees, without the extra financial burden of purchasing the freeholdto the land which the trees grow on. Minimum investment can start from as little as £10,000. As a result youonly invest your capital in the wood asset as it matures. Once the trees are felled and processed into the sawnwood stage, it is sold either to the local market at auction or purely for export, a decision that clients take ifthey do not want to sell their trees “standing”. Investors can benefit from income received from regular thinnings from the trees which produce ‘baby’ Teak wood.

Sustainable Teak plantations benefit the planet, not only in terms of CO2 reduction, but also by supplyingproperly sourced sustainable timber which reduces the pressure on the world’s natural rainforests. Timber isoften likened to high-grade bonds, meant to be held for 10 years or more.

Clients are provided with a sub-leasehold ownership on the trees which runs for six months after the treeshave reached 18 years old. The trees on individually-owned plots are managed through the managementcompany chosen by the client. Once the trees have reached specific ages in their growth cycle, clients thenneed to carry out a substantial thinning. The resulting harvest may then be sold and these funds are remittedto the client by their management company. Once the trees are 18 years old they will be felled, and in orderto maximise the best sale price, the trees are processed into sawn wood.

Ethical & Sustainable Forestry InvestmentsProtecting the planet has become a global issue and rightly so, by the time you have finishedreading this brochure at least 2,500 acres of rainforest will have been lost forever.

Many forests around the world have been illegally destroyed by regimes eager to cash in on thehigh prices that premium teak fetches on the open market. It is estimated by National Geographicmagazine that the last remaining rainforests could be destroyed within 40 years. The worldconsumption of hardwood has grown by nearly 2500% the last four decades.

It is said that the average male living in the industrialised western world produces about 160tons of damaging CO2 every 16 years. One hectre of teak consumes around 320 tonnes in thesame period.

Living investments works with investors from both the private and corporate market, buildingportfolios of commercially sustainable teak plantations that benefit the planet not only in termsof CO2 reduction but also by supplying properly sourced timber which reduces the pressure onthe world’s natural rainforests. Additionally, of course it providesthe potential to earn excellentreturns for investors over the medium to long term.

World consumption of hardwood has grown by nearly2500% the last four decades.

Note: To offset the cost to the environment in printing this brochure, Living Investments will plant two trees

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Security of Ownership Once you have completed the order form, and your investment is made, the Teak trees are yours. The sub-lease is signed by yourself, TTI, the freeholder and Living Investments UK, who are acting as agents ofthe freeholder. A fully signed sub-lease is returned to each client which specifies the estimated number oftrees, location, and identity of the asset, giving you absolute peace of mind, together with a certificate ofsub-leasehold. All clients are able to sell their plots at any time or wait for the trees to reach full maturity.

Overall Benefits Include:

• The opportunity to purchase plot(s) in Teak plantations which have been growing well and have been professionally managed to date

• Security of your ownership through a UK Trustee

• Income could be provided to clients via periodic thinnings

• An ethical investment vehicle for clients looking to make profits without hurting the planet.

How does the Investment Work?A client purchases a sub-lease in a specific plot of land which grants a beneficial interest to the client foreverything on the leased land. In Costa Rica there is a forestry law that acknowledges that trees or agriculturalcrops can be owned by one party, whilst the land is owned by somebody else.

Clients are provided with a leasehold ownership on the trees which runs for six months after the trees are 18years old. The trees on the individual plots are managed by CR Living Investments SA(management company).Alternatively, if desired, a list of alternative alternative management companies will be dispatched to all clients.Clients can instruct their own management company, or use one provided by Living Investments CentralAmerica Ltd, etc. or another company provided by ourselves. Once the trees are 11 years old a substantial thinning occurs. The harvest is sold and the money is remitted to the client by the managementcompany in place.

Once the trees are 18 years old they are felled. In order to maximise the best sale price they are processedinto sawn wood. A 10% fee is charged to cover felling, transport, and processing, etc. Clients also have theoption to sell their own trees in situ, or fell and process their own wood or appoint another managementcompany to do this for them.

“A Timberland portfolio would have returned 13.3% a year over the past 40 years. And it’s a low-risk asset.”

(Smartmoney 2001)

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Price of Teak Teak is a commercial wood, which means the price per unit is pretty well fixed at different sizes and ages ofthe trees and at different points of being processed, i.e. price of trees on the stump, price of logs FOB (freighton board) and price of cants (square sawn logs) or the price of rough cut lumber. The average sale price ofmature Teak in 2009 was about $500 US dollars per cubic metre for raw logs; rough cut lumber will wholesaleat around $1,200 to $1,800 per cubic metre. The current UK wholesale price (January 2013) varies between£12 and £19 per board foot (there are 424 board feet to the cubic metre) dependent on grade quality, etc.(short and thin wood is cheaper than thicker wood). Clearly this price includes processing, felling, deliveryand a profit margin for the wholesaler. Clients could never hope to achieve the wholesale price unless theythemselves were wholesalers, however, it does illustrate the price that Teak presently fetches on the openmarket. A recent report from ITTO (International Tropical Timber Organisation) which includes the US-imported sawn wood prices, shows that the average US imported sawn wood price for rough sawn Teaklumber is $2,125 per cubic metre, or $5.01 per board foot. In the same market report, the price reported forfirst quality Teak lumber in the UK market is $4,160-$4,804 per cubic metre, or $9.81-$11.33 per board foot.Some industry commentators are predicting future price projections reaching £10-£12 per board foot overthe next decade. However, we shall use considerably more conservative projections of only £5 for illustrationpurposes, to show possible future profits.

Breakdown of Client Profits The example shown below is of 11-year old Teak trees purchased after the second thinning stage. 1/5 acrelots have 85 trees at the time of initial planting at a purchase price of £10,000.

Costs£10,000 (purchase 1/5 an acre)

Management fees approximately £350 p.a. x 8 = £2,800

TTI administration fee 1.5% of the purchase price capped at £300 per contract (£150)

1% TTI annual fees payable

8 years x £100 = £800

(capped at £200 per transaction)

Final Realisation fee £300

Harvest fee 10% £4,240

Total = £18,290 Total Net Profit £26,100

Please note that the above table is for illustrative purposes and is only provided for you to better understand the process of growingand harvesting Teak. Whilst we believe these estimates to be reasonable, actual yields may vary and future values and numbers ofyour trees cannot be guaranteed. The counsel of an independent professional should be sought to evaluate these projections and individual suitability, etc.

Past Performance The Timberland Index has actually beaten the stock market over the long run and has far less risk. It has outperformed the S&P 500 over the last 100 years since 1910. And since 1987 the NCREIF (National Councilof Real Estate Investment Fiduciaries) Timberland Index climbed by an average of 15% per year, comparedto approximately 11% for the S&P 500. The returns on timber are especially good in bear markets. During theGreat Depression for example, timber gained 233% while the price of stocks fell more than 70%. In fact, duringthe three worst market downturns of the 20th century (1911-20, 1929-41 and 1966-81), timber outperformedthe S&P 500 by a wide margin. More recently, the S&P fell by 38% in 2008; timber rose by 9.5% based on theNCREIF Timberland Index. Timber is also a natural inflation hedge. Prices for timber have risen steadily forover 100 years. And during the last bout of high inflation in the US (1973-1981), it increased by 22% per year.

The Future for Timber The United Nations forecasts that world demand for timber will nearly double by the middle of the century.Population growth alone will have a great deal to do with this projection. Not surprisingly, this is due to thegrowth in China and many other emerging growth markets.

Why Timber Investment? Timber returns have performed well against global equity markets although performance cannot be guaranteed.

Timber has become a hugely popular investment during the recent meltdown as investors return to basicsand shy away from the current banking problems, due to the state of the European Union and the concernsof a triple-dip recession. Investors have put large amounts of money into forestry in recent years with theunderstanding that they could just leave the trees to grow, with the potential to increase in value every year.Demand for wood has been forecast to rise roughly in line with the global population, implying a 40% increase by 2050.

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Competitive Investment Returns

Growth & Flexibility Investment in Teak is not new. In fact, those with expertknowledge of forestry have been benefiting from this sector since the beginning of the 19th century. Teak is asought after hardwood and over the last century investment in rare hardwoods has proven to be one of themost consistently stable, high-yielding and low-risk investments in the world.

ReturnsIncome from second thinning (tree age approx 12 yrs)

20 trees thinned at £62 per tree= £1,240

Income from final thinning in 4 years as tree is approximately 16 years old. 5 trees thinned at £150 per tree = £750

Final harvest of 40 trees ie, 212 board feet per tree x £5 per board feet= £1,060 per tree

40 trees x £1,060 = £42,400 harvest value

Total Revenue = £44,390

Costs - £18,290

FAQ

Are There Any Other Costs?

There are the management costs associated with looking after the trees,checking for disease, thinning and security of the plantation. TTI chargesa contract administration fee at the point of sale which is paid by thepurchaser. Then an annual trustee fee is charged for reviewing and maintaining the investment structure. There is an initial charge of 1.5%,capped at £300 per transaction, and thereafter an annual charge of 1%,capped at £200 per transaction. For the first three years, fees are paid inadvance at the time of purchase. The remaining fees can be deductedfrom future thinnings should an investor so choose. The annual management of their plot will include the full tree management eachyear and on-site security until the trees are felled. A final realisation fee ispayable to cover items such as administration costs in relation to the termination of the project and the receipt and distribution of the harvestproceeds to individual client accounts.

Can I Choose My Own Manager/ Can I Fell the Trees Myself?

You are free to manage your trees and also fell and process your wood.You are also free to choose a management company and we will supplyyou with a list of suggested companies, although you are free to employa management company outside of this selection. Throughout your investment you will also have the flexibility to change and instruct a newmanagement company in charge of your plantation as per your agreement with your chosen management company.

Do My Trees Need to be Thinned and Managed?

Trees need to be thinned after around 8, 12 and 15 years of age. The firstthinning will not produce any revenue; it is a common belief from inexperienced operators that it does. The remaining trees at year 12 willhowever produce income. The harvested wood is known as baby Teakand is sold in the local market; although it does not have a huge valueas it is not water resistant but it does however have uses in the buildingindustry.

Can I Sell My Beneficial Interest to the Plotand My Rights to the Trees Growing on it?

Yes. You can sell your beneficial sub-leasehold interest at any point withall the rights to the Teak harvest; we just ask that you keep TTI informedof the new buyer’s name and address so that they can update the registerof investors.

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Income Tax* This may be due on the profits made from your timber production, depending on your country of residence.This of course is only paid once the trees are felled and the profit is banked. Initial investments, managementfees and any direct costs associated with the plantation are all deducted first. You will have to ask your accountant if air fares to Costa Rica and hotel rooms to view your investment abroad, etc. can be deducted.

Rollover Relief* Commercial woodlands also qualify for rollover relief. For rollover relief to be effective the subject of the re-investment must be commercial with a properly established trading activity. This is normally supportedby drawing up accounts in the UK, showing the income received from logging activities.

*Independent tax advice should be taken as circumstances can vary.

“…investment in forestry delivered returns of 20.6% against 14.4% in 2005, helped bythe fact that institutional investors are looking for ways to diversify their portfolios.There has been an enormous amount of interest in timber as an asset class.”

(Moneyweek 2009)

High Net Worth & Family Offices 9.1%

Fund of Funds4.5%

Other 15.9% Public Pension

Funds 43.2%

Corporate PensionFunds 9.1%

Foundation and Endowments 18.2%

Overview of Costa Rica Costa Rica is the perfect location for clients to invest in. The country has been highly rated as a very stablecountry for foreign investors to have confidence in terms of its social, political and economic stability. In 2007,the Costa Rican government announced plans for Costa Rica to become the first carbon neutral country by2021. Geographically, Costa Rica consists of 51,000 sq. km. The capital is San Jose with a population of approximately 4 million. The terrain of Costa Rica consists of a central range which separates the eastern andwestern coastal plains. The climate in the central highlands is Tropical and Sub-tropical in coastal areas.

Government Costa Rica is a democratic republic with a very strong system of constitutional checks and balances. Executiveresponsibilities are vested in a president, who is the country’s centre of power. There are also two vice presidents and a 15-member cabinet. The President and 57 Legislative Assembly deputies are elected forfour-year terms. The electoral process is supervised by an independent Supreme Electoral Tribunal – a commission of three principal magistrates and six alternates, selected by the Supreme Court of Justice. Judicialpower is exercised by the Supreme Court of Justice, composed of 22 magistrates, selected for renewableeight-year terms by the Legislative Assembly and subsidiary courts. Costa Rica maintains an embassy in theUnited States at 2114, S Street NW, Washington, DC 20008.

Political Conditions Costa Rica has long emphasised the development of democracy and respect for human rights. The country’spolitical system has steadily developed, maintaining democratic institutions and an orderly, constitutionalscheme for government succession. Several factors have contributed to this trend, including enlightenedleadership, comparative prosperity, flexible class lines, educational opportunities that have created a stablemiddle class, and high social indicators. Also, because Costa Rica has no armed forces, it has avoided militaryinvolvement in political affairs, unlike other countries in the region. Costa Rica’s major economic resourcesare its fertile land and frequent rainfall, its well-educated population, and its location in the Central Americanisthmus, which provides easy access to North and South American markets and direct ocean access to theEuropean and Asian Continents. A quarter of Costa Rica’s land is dedicated to National Forest, often adjoiningpicturesque beaches, which has made the country a popular destination for affluent retirees and eco-tourists.

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FAQ continued

Does Living Investments UK put Anything Back into the Environment?

We like to put our money where our mouth is. For every plantationthat we regenerate, we ensure that at least one third and normally50% of the area is taken back to primary forest, (this is wheregrowth is uncontrolled and turns back to a natural state).

Obviously this is not commercially viable for investors to get involved with, but it allows us to ensure that the rainforest can liveon past all of our lifetimes and be there for generations to come.Clients who visit their trees in Costa Rica can be shown around theirplantation on personal tours or left to visit and enjoy it for themselves. Living Investments UK also contributes on a charitablebasis to help support local employment and many local charitableprojects throughout the world. Furthermore, Living InvestmentsUK also invest in our personally-owned Teak trees alongside all clients.

Can I Buy a Whole Plantation for Myself?

Yes, we offer this service for clients investing upwards of £450,000.We will locate a plantation, carry out the due diligence (thoroughtitle searches, etc.) and provide a list of suggested managementcompanies for the client to select at their discretion.

Is There Enough Availability for Everyone?

No. Each plantation is limited by its very nature to a number ofhectares. Often, the beneficial interests in the plots and the rightsover the trees growing on them will sell out in a matter of days aswe have a large waiting list of clients wishing to buy. If you are unsuccessful at any time, we suggest you go onto our waiting list,and as and when we have availability we will notify you in advanceof the plantation coming onto the market to ensure you avoidmissing any future opportunity.

“On top of the appreciation, timber generates regular income. Trees are constantly chopped down and sold foreverything from boards to paper mulch.”

(The Wall Street Journal 2009)

Background to Teak The Teak tree (or Tectona Grandis) is one of the fastest growing hardwood trees in the world. Teak trees cangrow as high as 40m and can live to 100 years plus. Teak is an extremely resilient hardwood and its naturaloils make it highly resistant to the elements, as well as pests and termites. Teak is widely used to make avariety of furniture and is used extensively throughout the luxury shipping industry. The interest in Teak bythese industries is already strong and growing, making it one of the most valuable hardwoods in the world.Like all of our timber investments, Teak is also an excellent inflation hedge in an uncertain world. Teak is avery green investment as the lumber from our plantations replaces Teak from old growth tropical rainforeststhat would otherwise be harvested. For many years, widespread illegal logging has become a major problemworldwide. Several EU member states and a large number of other countries now impose government procurement policies aimed at ensuring that companies such as Living Investments UK scour the world forthe best quality hardwoods in the most stable parts of the world, both politically and environmentally for investors’ peace of mind.

The United Nations forecasts that world demand “for wood will nearly double by themiddle of the century. Not surprisingly, that’s in large part to China, which ranks secondonly to the US in wood consumption.”

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Foreign RelationsCosta Rica is an active member of the international community, and in 1993 proclaimed its permanent neutrality. Its record on the environment and human rights, and advocacy of peaceful settlement of disputes,gives it weight in world affairs far beyond its size. The country lobbied aggressively for the establishment ofthe UN High Commissioner for Human Rights and became the first nation to recognise the jurisdiction ofthe Inter-American Human Rights Court, based in San Jose. In 2007, Costa Rica was elected for the third timeto serve as a non-permanent member of the United Nations Security Council (January 2008-December 2009).

US-Costa Rican Relations The United States and Costa Rica have a history of close and friendly relations based on respect for democraticgovernment, human freedom, free trade, and other shared values. Living Investments UK provides all privateand corporate clients with complete in-house advice on how to structure individually-tailored investment portfolios and with complete on-going investment management. Investment in high grade Teak has showngreater returns and less volatility than most other recognised forms of investment. Hardwood Teak investmenthas many advantages over other structured investments such as unit trusts, life assurance, investment bondsand equities as it benefits from the following attributes:

• 100% ethical project • Increasing rarity

• Strong demand • Offers a spread of investment away from stocks

• Historically consistently proven returns • Decreasing Supply

• Low management cost

“Forestry, which is often seen as a “safe investment in uncertain times, is proving an excellent option during the ongoing financial crisis, according to areport by property consultants Savills.”

(Propertywire 2011)

Risks and FactsClearly the market value of Teak may rise or fall, however we hope that we have been conservative with our estimates.

DisclaimerThe contents of this brochure are not intended to be, and should not under any circumstances be treated by any recipient as investment tax orlegal advice. Investors must make their own investigations and carry out their own evaluations of the project and take from the relevant partylegal advice and or financial and tax advice. Living Investments UK is not authorised or regulated by the Financial Services Authority and doesnot provide investment advice, nor does it represent that an investment in the project is suitable for any specific investor.

Living Investments UK cannot guarantee the accuracy of every statement made. The value of your investments and any income you may receivefrom it can go down as well as up. You may not get back your original investment.

There are always risks when any investment is made but we hope that we have done all that we can to negate these events.

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“One of the most compelling reasons for including timberland in any investment portfolio is the ability to enhance risk/returncharacteristics. In addition to being an excellentportfolio diversifier and inflation hedge, timberland makes a good investment becauseits returns are equal to or better than other assetclasses.”

(Investopedia 2011)

“According to the United Nations. FAO publication Forest ProductsPrices, the median export/import prices of Teak actually rose at anaverage rate of 9.7% per year for the 15 years from 1970 to 1988.”

(ITTO 2011)

“The correlation between timber and other assets is low, which means timber is not verylikely to lose value when, say, stocks are tumbling. And it’s a steady performer in tougheconomic times”.

(Smartmoney Magazine 2011)