April 2024 Resident Update - Changes in the Sales Agreements

Summary

Highlights

• Sales agreements have resumed, simplifying the onboarding process for residents 🚀.
• New third-party payment processor SECU Pay introduced due to German regulations 🇩🇪.
• Changes in trust agreements include mandatory updates for any beneficial ownership changes 🤝.
• Residents are required to redo their KYC with additional documents 📄.
• Ship's deck 16 design modified for better stability as per international regulations 🌍.
• Ship stability adjustments ensure compliance and safety, with functional design redistributions 🛳️.

Key Takeaways

• Sales agreements have resumed with streamlined processes for easier onboarding 🚢.
• Key changes include a new third-party payment processor and simplified trust agreement procedures 💳.
• Residents need to redo KYC and electronically sign updated agreements 📑.
• Ship stability and design updates ensure compliance with international safety regulations 🚢.
• The ship's deck plan has been revised to maintain stability without compromising functionality 💡.

Overview

April 2024 Resident Update - Changes in the Sales Agreements Transcription

• 00:00 - 00:30 hello storylines residents welcome to April 2024 resident update if we have not met my name is Katie Jensen I am the executive VP of global operations here at storylines and this month we're going to be talking about some updates to the sales agreement package and I have our lovely contracts administrator lady mindes fera I'm so glad to have you back lady how are you today I'm doing well
• 00:30 - 01:00 how are you Katie I'm doing really well thank you so much all right this is let's just talk about the good news here that the the agreements have resumed we are sending those out now and we have just a few documents that we want to explain some of the changes that you're going to see in the agreement package um one of the things that's really great we did hear our residents and I know that it was a little complicated well our onboard boarding process has really been streamlined now so we have a you know a much easier system to get through we'll
• 01:00 - 01:30 talk a little bit more about that in just a second um we are going to talk about our third- party payment processor we're going to go into a little bit more detail on that and then just a few other things and we'll just break it down uh per agreement so like I said there's three um three agreements that have changed let's just start with the agreement of sale of exclusive Perpetual use license that is a mouthful by the way that's a long title for this agreement but could you just kind of lay out and bullet point some of those changes that they're going to see sorry Kati and you did a great job I know that
• 01:30 - 02:00 is a mountable there yes it is so the first change is in the timeline that you'll see right at the beginning um I'm sure everyone knows that we sign this uh ship building contract so the timeline's just been adjusted accordingly and um also the payment provider that we're using skipe is now included and also the new Bank Commerce Bank that we're using there's also another change um in the Cure period where there's um there's now a six-month arbitration period rather than a 12-month care period And there's no longer any cons quential damages okay
• 02:00 - 02:30 all right great so let's just move on this is going to be a pretty short little clip here but we're just going to move on now to the trust agreement changes and if you wouldn't mind just going through and sharing what those are yeah so again um SECU pay is now listed as our third party payment processor that we included due to a change in German regulations um another change is um some of the details on how the trustee will handle greenlighting of payment if there are any disagreements between the naval architects there are
• 02:30 - 03:00 also changes in the termination rights and also for those residents who are purchasing their unit using a trust LLC there is now um a new Clause where residents have to update the trustee of any changes in the beneficial ownership um changes in that entity or you know if the anything becomes subject to sanctions or something like that that we need to be aware of okay all right now I you know I think some of our residents have asked what is
• 03:00 - 03:30 the difference between an escrow and a trust account um can you just kind of go through and just highlight what those differences are yeah so um escro and Trust accounts um they are similar but they do serve different purposes for managing funds an escro account typically holds funds just temporarily for one transaction um and then there's an escro agent who ensures that both parties fulfill their obligations and then they will um make sure those funds are released now a trust account is established to make assets for the
• 03:30 - 04:00 benefit of a beneficiary over a longer term so that trustee will um manage those funds and they have a legal responsibility for managing and distributing those assets so basically they both involve third- party oversight of funds but an es escrow account focuses more on one specific transaction and then a trust account is designed for a longer term um asset management and distribution thank you so much that's really interesting actually the escrow and Trust they seem so similar but it's really good to hear those differences and you know exactly what that is now I
• 04:00 - 04:30 know residents you're going to have some questions and we're anticipating that we're here for you a few of those questions that might arise right now is if you have to redo your kyc process so lady yes so we have changed our process and you will need to redo the kyc um because we do require a couple more documents but the good news is that you'll able you'll receive a link and then you can submit your documents you don't need to have a life agent or anything like that um so it should be easier to just do it that way and you can submit your documents by yourself oh
• 04:30 - 05:00 so much easier that's such good news and then what about the sales agreements um do they need if they've already signed them do they need to do that again yes so again we're going to need you to re to sign those but we want to make things as easy as possible so you'll receive an email from docy sign where you can sign all of your documents and that also includes the trust agreement so I know previously um we had required a wet signature print those out and mail those all the way to Germany luckily we don't need to do that anymore again the trust agreement will just be one document in the sales agreement package can sign
• 05:00 - 05:30 everything electronically from wherever you may be in the world um and no worry about meiling oh there's so many positives and I love the fact that everything's in one place now and again residents we do hear you and we always listen and try to change what we can that's exactly what we did so we did streamline this process and we've made it a lot more convenient but we are here and we are sending these agreements out in batches so we can have control over and enough time and enough manpower or woman power as the case might be uh to answer all those questions and make sure
• 05:30 - 06:00 that we can help you through this process um I think that that's it with the two documents that we have talked about we're going to have now uh CEO Alistar Pon and Dr Paul Reed they are going to talk about the last document that um that have that we made some changes to sorry um and that is the uh the deck plans so we're going to hand it over to them right now we appreciate very much appreciate you lady for coming today your time I know how busy you are and I know our residents really
• 06:00 - 06:30 appreciated it too thank you Katie all right thanks so we're going to hand it over now to aliser and Paul thank you Katie for that wonderful introduction and uh welcome Paul Reed how are you today I'm good thanks pleased to be here excellent and welcome residents thank you for joining into this call uh we're always happy to be here and sharing wonderful updates with you and on this particular call we're going to be talking about uh ship design and importantly ship stability um as some of you have been around story line for a little while now we will know that um we
• 06:30 - 07:00 added in an original deck 16 um which was um done after the initial design I should say and that was to allow for more office space more medical space and these other various components on the ship um we knew that we were pushing the boundaries of stability at the time and we've only just recently had that confirmed through Lloyd's Rister and of course the yard and various different designers so to talk a little bit more about that is uh Paul Reed um Paul please
• 07:00 - 07:30 Enlighten us yeah so um well the design process as a whole is a evolutionary process it's a spiral um and we've just been around the spiral once and we've completed the initial design we're just about to step into the basic design and during this initial design we took the idea of adding this um partial deck on deck 16r and we looked at whether we could actually achieve it with the vessel in
• 07:30 - 08:00 in the configuration that got it at the moment unfortunately um the margins really were not enough it uh didn't give us enough comfortable space within the margins that when we move forward into the next part of the design we are sure that we're not going to have to do anything serious to the design um to be able to achieve the stability or the damage stability that the vessel requires and uh to maintain the weight that we need
• 08:00 - 08:30 um to meet the regulations so um we had to take the decision to remove that last part of the deck 16 and look at redistributing all the functions that were on that deck um back around the ship in various places around the ship and that's what we've done so we basically got back to what all the rendering show which is the ship without that the deck there yeah exactly and um so we'll show you some um plans now just to make it
• 08:30 - 09:00 make sense for people that are watching um so I guess the most important part for this is you know when you get into further down the track and getting closer to the point where you're really starting to actually build on site um you don't want any big changes at the last minute um or or big changes from a from an engineering point of view where something drastic needs to change and you've got no margin of of weight capacity and stability and then could affect worst case scenario like
• 09:00 - 09:30 residences and that's not acceptable from from our perspective at least so this just gives us that little bit of margin to be able to play with or quite a lot of margin to be able to play with which is important okay so I'll share my screen now and we'll go through some of these these are all just initial designs at this stage for those redistribution of spaces um so you can see here this is when you look at the 3D renderings of the ship this is what it actually looks like for most of those renderings so that um last which formerly was sort of
• 09:30 - 10:00 here um has now been basically cut back out of of the design so when we go to uh let's look at some the distrib distribution so let's go to the um to the medical side of things so on forward deck six um we redistributed the um anti-aging clinic and the doctor's consult rooms um into the Wellness um Center um which is a good fit for that space and just where it was originally
• 10:00 - 10:30 different location but where it was originally anyway um so it's back in that location and we've just um taking up some of the space from the group Studios um as you can see here we formally had a larger group studio and we now just made a little bit smaller here to accommodate for that and while we're on medical on the same deck on the AR end um formerly there was a cocktail bar here this is now the Medical Laboratory um got the compound Pharmacy in here as well and we've also um cre
• 10:30 - 11:00 the maker space in here and artist UC education enrichment Studios all into one um or two two separate spaces here yeah this this area is um now become sort of a functional retail space so it it all fits nicely together so it's a good place for it all to be situated from a flow perspective yeah yeah then um the um the dentist space has been put
• 11:00 - 11:30 down into the hospital as you can see here on our on the screen um and finally the that [Music] yeah yeah on Deck 16 16 fall 17 17 sorry yeah on De 17 um the resident offices has gone into this area here um which was formerly a residental lounge and the story offices has gone into the other side here which
• 11:30 - 12:00 was formerly a resident Lounge um so for those residents on that particular level most of these r5s where you've got the resident Lounge on the deck above there's also a large resident Lounge um below which is almost identical if not the same identical EXA yeah so the same footprint below as well um so there's still mult multiple spaces there for the people on um in those residences from an access point of
• 12:00 - 12:30 view um the stairs up and down here are of course the lifts in the same locations so that's pretty much the um stop sharing so that's pretty much the um redistribution of spaces um so it wasn't a huge lift to get it back into how how it originally was um I would have liked to have kept it the other way of course but um we've got to obviously do the right thing by the um by the design and make sure the ship does float and floats well so well do you have anything else to add into the um from
• 12:30 - 13:00 the design point of view just to help residents because they obviously don't live and breed this every day um yes yeah I mean I I think what I'd like to explain is is some just so people don't get too too worried about stability um the stability of the ship we don't have any issues with at all we've got plenty of margins on the intact stability of the ship the intact stability of the ship is that the ship when it's it's in its usual state on the water um we have no issues with that at all the issues
• 13:00 - 13:30 that have come up in terms of design margins were to do with damage stability now damage stability is something that we have to assess and it goes all the way back to the Titanic when the Titanic um sank and they have all the issues with bulkheads flooding over and the problem with the ship was that it didn't have sufficient damage stability meaning that when it got damaged there wasn't sufficient stability for the ship to survive so what we have to do nowadays is we have to analyze and the ship
• 13:30 - 14:00 design and we have to look at every possible way the ship could be damaged and make sure that in almost all scenarios of course there could be somewh we have very very serious damage and you can't survive but in almost all subar we can survive and the ship can continue to um either evacuate everyone without without going down or that we can go to uh port safety so there's
• 14:00 - 14:30 something it's to do with emergencies it's to do with some possibility that could we hope will never ever happen so it's not to do with the ship of stability as it is now as it will be on on the water so I just want people to be calm there's nothing to do with that but we need the margins to be able to achieve the regulations that require us to make sure the ship can survive if it gets DED that's right and these are you International regulations um you know we don't control them of course but put
• 14:30 - 15:00 forward for our for for everybody's safety um so and and if you got any questions from any Resident listening to this if you got any questions feel free to reach out to sfia or anyone else in the team in relation to this I'm happy to answer any questions well that concludes our April 2024 resident update a big thank you to Alistair Paul and lady for their contributions this month and we will see you next month bye-bye [Music]