ROH privileges

ROH incorporated in Thailand will enjoy the following privileges:

            1.       Corporate income tax at the rate of 10 percent of net profits for income derived from services provided to ROH's foreign branches or associated enterprises;

            2.       Corporate income tax at the rate of 10 percent of net profits for royalties derived from ROH's foreign branches or associated enterprises for the use of Research and Development (R&D) done in Thailand by ROH. This benefit is also extended to royalties received from a third party providing services to ROH's branches or associated enterprises using ROH's R&D;

            3.       Corporate income tax at the rate of 10 percent of net profits on interest received from ROH's foreign branches or associated enterprises for loans granted, provided that such loans are made from other sources and extended to ROH's branches or associated enterprises;

            4.       Tax exemption for dividends received from ROH's associated enterprises;

            5.       Tax exemption for dividends paid out of ROH's concessionary profits to its shareholders not carrying on business in Thailand;

            6.       Accelerated depreciation for buildings at the rate of 25 percent on the date of acquisition. The residual value can be depreciated within 20 years.