Timeshare Lease

● As each of the Timeshare Units was to be collectively owned by fifty-one individual owners, the developers had to establish a way for each owner to have sole and exclusive use of their common Unit for one week each year and to set aside for maintenance, week fifty-two.

● The solution was to overlay the Freehold Interests with Leasehold Interests by registering fifty-one Leases on the Records of Title for that Unit.

● Each lease runs for 999 years and permits one of the fifty-one Owners the exclusive use of the Unit on a specific week each year. The Lease also sets out rules for the use of the Unit, how the unit must be managed and obligations for costs. At the end of the 999-year term the lease will expire, and the Titles will continue indefinitely without the usage and operational rules established through the lease document.

● Put simply the fifty-one Owners of a Unit have agreed amongst themselves that each owner shall have exclusive use of that unit for one week, Friday to Friday, each year, referred to in the lease as The Timeshare Week.

● For clarification the Lessor is all the fifty-one owners of that unit, and the Lessee is the owner that has the use of the specified Timeshare Week.

● Non-Timeshare Units do not have leases.