| 1 |
Financial Terms |
| 1.1 |
The Comittee shall invoice each year annual charges to the Members and only
the Comittee shall be permitted to collect funds from the Members. |
| 1.2 |
For 2002, the annual charge shall be 228,38 € per timeshare week and an
amount of 208,38 € per annual charge per timeshare week collected shall be paid
by the Comittee to Hotetur. |
| 1.3 |
The annual charges for each year shall be invoiced and collected directly by the
Committee who shall indicate to Hotetur before 15 January of each year the amount
of charges receuved from the Members as at 31 December of the previous year. By 15
january of each year the Committee shall pay to Hotetur 208,38 €(plus indexation
pursuant to clause 1.4) for each timeshare week in relation to which the Committee has
received the full annual charge invoiced. The remaining amount of the monies collected,
namely 20 € (plus indexation pursuant tou clause 1.4) per timeshare week, shall be employed
by the Committee to secure the administration of Club Aquamar. Annual charges collected
after 31 Decembre of any year shall be allocated in accordance with the same rule set
out in this clause 1.3. |
| 1.4 |
After consultation with Hotetur, The Comittee shall fix by 15 September of
each year the amount of the annual charge for the following year and the amount to
be paid per timeshare week to Hotetur. Unless agreed by the parties to the contrary,
annual increases to the annual charges shall be limited to the increase in the Spanish
price index "IPC", the reference being the amounts set out in clause 1.3 of this
Agreement as at 1 January 2002. |
| 1.5 |
Hotetur confirms that it has already invoiced each Member for the annual charges
relating to 2002. The amount invoiced was 228,38 € per timeshare week. The annual
charges for 2002 shall be neverless collected directly by the Committee and shall
be allocated in accordance with the provisions of clause 1.3 |
| 1.6 |
Hotetur Shall be responsible for the collection in 2001 of 25 000 Pesetas from
each of the members in relation to the proposed renovation of the residence. This
amount as already benn invoiced to the members. |
| 1.7 |
Alla future cash calls and annual charges relating to Club Aquamar shall be invoiced
and collected solely by the Committee from the Members and paid to Hotetur in
acordance with the rule described in 1.3 above. |
| 1.8 |
If Hotetur considers that the remuneration paid by the Committee pursuant to
clause 1.3 is insufficient to cover the costs of maintenance of the Residence,
not later than 30 march of the year in question, Hotetur shall provide the Committee
with full financial accounts relating to the cost of its management and maintenance
of the Residence relating to the previous calendar year so that the Committee may
determine whether to increase the annual charges in excess of the annual increase
of the Spanish IPC. Hotetur shall also provide the Committee at the same time with a
management report relating to the management and maintenance of the Residence with
suggestions of how facilities and services may be improved in a cost effective manner. |
| 2 |
Obligations and Rights of Hotetur |
| 2.1 |
Hotetur shall assure the daily local management of the Residence, including
reception, cleaning, maintenance and gardening. |
| 2.2 |
Hotetur shall maintain the Residence, including the apartments, swimming pool,
restaurant and other facilities made available to Members. Refurbishment is to include
replacement of blankets, towels, sheets, curtains, kitchen ustencils and furniture
whenever necessary due to need or to ensure that the apartments maintain the quality
appropriate to its standing and RCI classification. If furniture is damaged by a
Member, Hotetur shall request the Member to pay the replacement cost. If the Member
refuses to pay, Hotetur shall file a report with the local police and send a copy
to the Committee. On receipt of a copy of the police report, the Committee skall block
the timeshare week of the Member concerned until the replacement cost has been
paid to Hotetur by the Member. The internal and external parts of Residence shall
also be painted regularly in order to ensure that the Residence maintain the quality
appropriate to its standing and RCI classification. |
| 2.3 |
Hotetur shall ensure that each apartment of Club Aquamar shall possess at all times
the items set out in Schedule 1 to this Agreement. |
| 2.4 |
Following discussion and agreement with the Committee, Hotetur shall make
improvements to the apartments of Club Aquamar and the Residence as and when necessary
in order to take into account market demand and the requests of Members. |
| 2.5 |
Hotetur shall receive remuneration for its service pursuant to Clause 1.3 |
| 3 |
Obligations and Rights of the Committee |
| 3.1 |
The Committee shall invoice and collect the annual charges from the Members
and shall be the sole body authorised to invoice the Members. The Comittee shall
pay Hotetur for its services pursuant to Clause 1.3 |
| 3.2 |
The Committee shall be the sole body authorised to block or unblock the
timeshare weeks of the Members and shall be the sole intermediary between the Members
and RCI. |
| 3.3 |
The Committee shall administer the Member database and provide copies of updates
to Hotetur. The Committee shall deal with changes of ownership of its Members and
issue certificates of ownership. |
| 4 |
Database |
| 4.1 |
The Committee shall own and hold the database relating to the Members and Hotetur
shall provide access to all information in its possession with regard to Members'
details. |
| 4.2 |
The Committee shall manage and update the database relating to the Members. |
| 4.3 |
Hotetur shall provide the Comittee with a copy of its database relating to the
Members by the end of september 2001 and the Commitee and Hotetur will exchange
information and cooperate generally in order to produce one database wich accurately
records the identitly of the Members and whether their annual charges are still
outstanding. |
| 5 |
Annual Review |
| 5.1 |
Subject to one calendar month's notice, the Committee reserves the possibility
of convening an annual meeting with Hotetur to discuss questions of administration,
management, costs, improvements, renovations, issues raised by the Members and
reviewing the standing and quality of the Residence and the apartments of Club Aquamar
with a view to jointly finding solutions for on-going issues and where appropriate
deciding on joint action. |
| 5.2 |
The meeting referred to in Clause 5.1 may also be used to jointly review annual
accounts and annual charges and may take place in Lanzarote or, upon Hotetur's
agreement, in France or another location immediatly before or after the Annual
General Meeting of Club Aquamar. |
| 6 |
Termination |
| 6.1 |
This Agreement may be terminated by either party giving six calendar months'
written office to the other side. |
| 6.2 |
In the event of serious or continued breach of this Agreement, this Agreement
may be terminated immediately if the party in breach fails to remedy the breach
within thirty days of written notification of the same by the other party. |
| 7 |
Entire Agreement and Assignment |
| 7.1 |
This Agreement shall enter into force upon signature of both parties and
from that date shall represent the sole and entire agreement between Hotetur and
Club Aquamar relating to the present and future local management and maintenance
of the Residence. |
| 8 |
Applicable Law and Jurisdiction |
| 8.1 |
The applicable Law of this Agreement is spanish Law. |
| 8.2 |
The parties submit to the non-exclusive jurisdiction of the Courts of
Arrecife, Lanzarote. |
