REMOTE GAMING MALTA Costs, Fees & Taxation

(A) Costs
1. LGA Remote Gaming Licence Application Process (costs due to the LGA [Lotteries & Gaming Authority])
[Preparation of the application forms and relative documentation to be attached thereto; the submission of the same; meetings and correspondence with the Lotteries & Gaming Authority; technical advice and other ancillary services] - Processing fee (non-refundable) due to the LGA in respect of each application - The audit fee due to the LGA for the audit of the gaming system during the certification process 2,330 - Annual license fee per class due to the LGA 7,000

2,330

2. MFSA Company Incorporation Process (Costs due to the Registrar of Companies [MFSA])
- The Official Registration Costs payable to the Registrar of Companies (MFSA) for the registration of a company are calculated according to the companys authorised share capital & official copies of the M&A Cost (Minimum Share Capital of 1200) - Minimum Issued Share Capital to be deposited in the companys name with a local bank account -

500

1,200

(N.B. Immediately prior to the issuing of the licence the LGA will request as a condition thereof that the Company increases its issued share in accordance with the business activities to be carried out)

Credinvest International

For info: amangion@credinvestonline.com

(B)

Fees

1. Fee for Remote Gaming Licence Application Process (Fees due to Credinvest International Corporate Finance)
- 1st Stage Fixed Fee - 2nd & 3rd Stage (Provided that the 3rd stage mirrors the 2nd details submitted to the LGA) Fixed Fee 10,000 35,000

stage technical 45,000 to 60,000

2. Fee for Company Formation

- Company Formation Fee Liaising with client for the sourcing of the required information and documentation reservation of company name preparation and registration of a Memorandum and Articles of Association for the company liaising with the Registrar of Companies Income tax registration VAT Registration Opening of operative bank account Fixed Fee -

1,500

3. Fees for Company Maintenance

- Provision of Registered Office (The company's registered office must be located in Malta) - OPTIONAL Annual Fixed Fee - Company Secretary (Acting as company secretary - handling of annual statutory filing at the Registry, including maintaining of the company's official register & annual return submission) - OPTIONAL Annual Fixed Fee -

1,000

3,000

Credinvest International

For info: amangion@credinvestonline.com

Annual Fees for Company Maintenance (cont)

- Statutory Auditing of Accounts of the Start Up Gaming Company Annual Fixed Fee 2,500

- Fiduciary Shareholder Services provided by Intershore Fiduciary Services Limited (Screening screen of the beneficial owners involvement in the company) - OPTIONAL Annual Fixed Fee 2,500 - Appointment Intershore Fiduciary Services Limited as an additional Director on the Board of Directors of the Company - OPTIONAL Annual Fixed Fee 5,000 - Back Office Administration, Legal Advice and ancillary support services following the issuing of the the Letter of Intent by the LGA Hourly Fixed Rate - Key Official Services, including supervision of the gaming operations, supervision of control system and reporting to the LGA following the issuing of the Letter of Intent by the LGA Monthly Fixed Rate -

120

2,000

(C)

Corporate Tax

Company Tax due to the Commissioner of Inland Revenue Under the new tax refund system introduced in January 2007, the company is taxed on profits at the rate of tax of 35%, however a tax refund is applicable upon the distribution of profits through dividends where the tax thereon has not been reduced by double taxation relief. The said tax refund amounts to 6/7ths of the 35% underlying tax payable by the distributing company. Therefore, after receipt of the tax refund the Malta tax burden on dividends received by shareholders of Maltese companies will be 5%. Effective Corporate tax 5% on profits

Credinvest International

For info: amangion@credinvestonline.com

(D)

Gaming Tax

Gaming tax payable to the LGA to the LGA on behalf of the government is differentiated according to the type of betting/gaming operation as follows:On Gaming (Class1) - an amount of 4,600 per month during the first 6 months after issue of the licence and thereafter 7000 per month for the entire duration of the licence Provided that where a casino operator (under Class 1 licence) operates from the host platform (under Class 4 licence): - gaming tax payable by casino operator is 1,200 per month; and - the gaming tax payable by the host platform is as follows: - untaxed for the first 6 months of operation; - 2,300 per month for the following 6 months; and - thereafter 4,600 per month On Betting (Class 2) - an amount equal to 0.5% on the gross amount of stakes/bets accepted On Commission Based Games (Class 3) - an amount equal to 5% on the net income The maximum gaming tax payable per annum by one licensee in respect of Classes 2 & 3 shall not exceed 466,000.

Credinvest International

For info: amangion@credinvestonline.com