Page 46 - E-BOOK

The Company will consider purchasing the NPLs from the financial institutions whether by direct negotiation
with the financial institutions or through joining bidding for NPLs distributed by the financial institutions, after
receiving information or from registration to join the bidding and receiving the bidding envelope from the financial
institutions. Then, the Company will evaluate the NPLs by considering if such NPLs contain collaterals or not. The
Company focuses on purchasing secured NPLs with guarantee as real estate. However, in case of purchase of NPLs from
the financial institutions, the Company will purchase the NPLs after negotiation with the seller’s financial institution.

Furthermore, the Company maintains good relationship with the domestic financial institutions as a channel
to keep updated about news and information from the financial institutions closely.

(2) Inspection, property appraisal and payment
When a financial institution distributes NPLs in form of bidding or direct sale negotiation with the Company,
the Company will sign in a non-disclosure agreement with the related financial institution before receiving the
document with information of the offered NPLs. The Company will use such information to check the status and
appraise the collaterals of the NPLs before purchase.

Due diligence process of the Company includes the related loan document examination and additional
inquiry from the vendors as well as surveying and verifying the price of collaterals of the NPLs in support of the
purchase. The Company utilizes the network of branch offices nationwide, that normally, the officers at a branch
office near the collateral of such NPLs will gather information to survey the collateral of the NPLs before presenting
the survey result and price to the working group for non-performing loans (NPLs) and non-performing asset (NPAs)
purchase from the financial institutions. After the Committee for non-performing loans (NPLs) and non-performing
assets (NPAs) purchase from the financial institutions considers information and purchase pricing, it will present to the
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Executive Committee and Board of Directors to approve the NPLs purchase price.

Generally, the Company defines the bidding price or proposed price of NPLs from various factors
such as expected cash flow that the Company will receive from the NPLs in the future, collateral value, and record
of debtors etc. Furthermore, for suitable pricing, the Company considers the status of legal execution process as well
as legal validity, business type, occupation of the debtors, and existence of the collaterals for such debts. When the
investment team quotes the purchase price of NPLs and NPAs from the financial institutions, the Committee will
present the price to the Executive Committee and the Board of Directors for further approval. Nevertheless, joining
the bidding or purchasing NPLs shall be approved by the Executive Committee and Board of Directors by recognizing
suitability of the return rate of investment and risk.

The Company pays for NPLs acquired from financial institutions in cash, using the cash generated from its
operation, and from issuing the promissory notes, taking out a loan, and issuing debentures. In order to choose its
source of funding, the Company will consider the cost of capital and its general liquidity. If the Company considers
the choice of issuing the promissory notes, the term of the promissory notes will be subjected to the commercial
agreement.