GUARANTEED RENTAL ARRANGEMENT
This Agreement is made this _____ day of __________, 1996 by
Charthouse Suites Vacation Ownership, Inc. ("Charthouse").
RECITALS
WHEREAS, as an incentive, Charthouse, in order to induce
persons to purchase Charthouse Suites Vacation Investment and
Ownership Interests ("Interests"), is willing to allow holders, who
purchase within a certain period of time, the right to put a
certain number of weeks of a holder's right to use the Charthouse
Suites Hotel, located in Clearwater Beach, Florida, to Charthouse,
in return for receiving certain guaranteed rates, on the terms and
conditions herein.
NOW, THEREFORE, Charthouse agrees as follows:
1. Definitions:
Effective Date Effective Date shall mean the date
the Securities and Exchange
Commission declares the Charthouse
Registration Statement for the
Interests effective.
Guaranteed Rental Rate Guaranteed Rental Rate shall mean:
Class A Interest-Standard Studio Suite $ 75.00
Class B Interest-King Studio Suite $ 75.00
Class C Interest-Large Studio Suite $ 85.00
Class D Interest-1 Bedroom $120.00
Class E Interest-1 Bedroom Suite (with lanai) $130.00
Class F Interest-Penthouse $175.00
2. Guaranteed Put Weeks. Charthouse agrees that:
(a) Holders who purchase Interests within six months of the
Effective Date (and do not cancel their subscription)
will receive the right to put six (6) weeks to
Charthouse, on the terms and conditions herein, ("Put")
and receive the Guaranteed Rental Rate or in the
alternative may elect to receive the Cash Discount Amount
set forth in Section 5(a) of this Agreement.
(b) Holders who purchase Interests between six months and one
day and nine months of the Effective Date (and do not
cancel their subscription) will receive the right to put
four (4) weeks to Charthouse, on the terms and conditions
herein ("Put"), and receive the Guaranteed Rental Rate or
in the alternative may elect to receive the Cash Discount
set forth in Section 5(b) of this Agreement.
(c) Holders who purchase Interests between nine months and
one day and one year of the Effective Date (and do not
cancel their subscription) will receive the right to put
two (2) weeks to Charthouse, on the terms and conditions
herein ("Put"), and receive the Guaranteed Rental Rate or
receive the Cash Discount set forth in Section 5(c) of
this Agreement.
3. Put Procedures. In order to exercise the Put (described in
Section 2), a holder must:
(a) give Charthouse written notice of their intent to
exercise the Put at least 30 days prior to the beginning
of the unit week desired to be Put;
(b) Put the entire unit week to Charthouse;
(c) exercise the Put within 5 years after the Effective Date;
(d) be current with all license payments (if paying by
installment), annual dues, and special assessment, if
any, for the Interest.
Provided that, notwithstanding the foregoing, Charthouse
may reject the Put if it has received 5 requests for the
requested unit week (Charthouse will accept requests in
the order of receipt). Furthermore, this guarantee is
conditioned upon there being no action threatened,
pending or taken, which makes the Charthouse Rental Pool
or the Guaranteed Rental Arrangement illegal, or
otherwise restricts or prohibits the ability of
Charthouse to use the unit week.
4. Consequence of Exercise. Charthouse agrees to forward the
funds from the Guaranteed Rental Arrangement within 60 days of
its acceptance of the Put. Upon the acceptance of the Put,
Charthouse will have the exclusive right to use, exchange, or
rent the suite and may collect and retain all revenue arising
from its use or rent of the suite. A holder may not withdraw
a Put request without Charthouse's consent.
5. Cash Discount. In place of the Guaranteed Rental Arrangement,
a holder may elect to receive the following Cash Discount
Amount on the subscription price.
(a) Holders who purchase Interests within six months of the
Effective Date (and do not cancel their subscription) may
elect to receive a Cash Discount of 5% from the price of
the Interest.
(b) Holders who purchase Interests between six months and one
day and nine months of the Effective Date (and do not
cancel their subscription) may elect to receive a Cash
Discount of 3% from the price of the Interest.
(c) Holders who purchase Interests between nine months and
one day and one year of the Effective Date (and do not
cancel their subscription) may elect to receive a Cash
Discount of 1-1/2% from the price of the Interest.
6. Annual Dues and Licensing Payments. Nothing in this Agreement
shall change a holder's responsibilities to pay license
payments, annual dues or special assessments. Charthouse may
elect to retain the proceeds from the Guaranteed Rental
Arrangement and apply the funds against past due license or
annual dues.
7. Amendment. Charthouse may amend this Agreement, provided that
any amend-ment does not reduce the cash benefit to be received
by a holder.
Agreed to as of the date set
forth above.
________________________________
Charthouse Suites Vacation
Ownership, Inc.
Its: ___________________________
