GUARANTEED RENTAL ARRANGEMENT
This Agreement is made this _____ day of __________, 1997 by
Charthouse Suites Vacation Ownership, Inc. ("Charthouse").
RECITALS
WHEREAS, as an incentive, Charthouse, in order to induce
persons to purchase Charthouse Suites Vacation 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 Chart House 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 $ 70.00
Class B Interest-King Bed Studio $ 75.00
Class C Interest-Large Studio $ 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, and such amount is to be
consideration of the Charthouse rental pool fee of 5%.
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 90 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, special assessments or the
Charthouse rental pool fee. 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: President
