Address

Sovereign Corporate Centre46 Fairwind St., Mt. Royal Ave.P.O. Box CB-12762 Suite #407Nassau, N.P., The Bahamasmmccartney@lexjustis.com www.lexjustis.com www.lexjustis.com/blog

Telephone

[242] 326-1202

Facsimile

[242] 325-4202

APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

SUBMISSION OF PUBLIC OFFERING STATEMENT

The public offering statement must be given to each on-site purchaser priorto the execution of the purchaser's contract. In applying for the approval forthe grant of the time share license, the developer must file withthe Bahamas Investment Authority a detailed public offering statementcontaining numerous disclosures regarding the timeshare project. Underspecial circumstances the BIA may fully exempt the developer fromsubmitting the public offering statement, however there is no requiredtimeframe for authority approval, which may put the developing owner at adisadvantage with respect to project planning. The Vacationing and Timeshare Act has established a number of statutory requirements which must beincluded in every public offering statement, the details of which can be foundin the paragraphs below:

Information to be Included in Public Offering Statement

Every developing owner or his marketing agent shall, unless exempted bythe Board, include in his Public Offering Statement the following information,where applicable to his time-sharing project:-Name, Address of Beneficial Owner: the name of the developing ownerand the principal address of such developing owner, the project and itsprimary location, and the time-share interests being offered for sale,including:--the name and address of every officer of thedeveloping owner, and-the name and address of each person owning orcontrolling an interest of twenty per centum or morein the time-sharing project;-Description of Time share Development: a complete description of thetime-sharing project and the facilities and amenities made available topurchasers, including provisions, if any, that have been made for publicutilities in the time-sharing project, including water, electricity,telephone and sewerage facilities and also including, withoutlimitation, the developing owner's good faith estimate, schedule of commencement and completion of the time-sharing project, its

Address

Sovereign Corporate Centre46 Fairwind St., Mt. Royal Ave.P.O. Box CB-12762 Suite #407Nassau, N.P., The Bahamasmmccartney@lexjustis.com www.lexjustis.com www.lexjustis.com/blog

Telephone

[242] 326-1202

Facsimile

[242] 325-4202

APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

facilities and amenities or, if completed, a statement indicating thatthey have been completed and the date of such completion;-Description of Recreational Facilities: the description contemplated inparagraph (b) shall include a description of any recreational and othercommonly used facilities which will not be used exclusively bypurchasers of the time-sharing project and which require the paymentof any portion of the maintenance and expenses of such facilities,either directly or indirectly, by the purchasers; such description shallinclude, but not be limited to, the following:--each building or facility committed to be built,-facilities not committed to be built except undercertain conditions, and a statement of thoseconditions or contingencies,-as to each facility committed to be built, or which willbe committed to be built upon the happening of oneof the conditions of subparagraph (ii), a statementwhether it will be owned by the purchasers havingthe use thereof or by an association or other entitywhich will be controlled by the purchasers, or others,and the location in the exhibits of the lease or otherdocument providing for use of those facilities,-the year in which each facility will be available foruse by the purchasers or, in the alternative, themaximum number of purchasers in the time-sharingproject at the time each of the facilities is committedto be completed,-if there are leases, descriptions thereof, including thelength of their terms, the rents payable, anddescriptions of any options to purchase;-Time Share Club Membership: if it is mandatory that the purchaserspay fees, rent, dues or other amounts under a recreational facilitieslease or club membership for the use of any facilities as referred to inparagraph (c), the following statements in conspicuous type:-

Address

Sovereign Corporate Centre46 Fairwind St., Mt. Royal Ave.P.O. Box CB-12762 Suite #407Nassau, N.P., The Bahamasmmccartney@lexjustis.com www.lexjustis.com www.lexjustis.com/blog

Telephone

[242] 326-1202

Facsimile

[242] 325-4202

APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

-membership in the recreational facilities club ismandatory for purchasers,-purchasers are required, as a condition of ownership,to be lessees under the recreational facilities lease,and- purchasers are required to pay their share of thecosts and expenses of maintenance, management,upkeep, replacement, rent and fees under therecreational facilities lease or the other instrumentsproviding the facilities, or-similar statements of the nature of the organizationor the manner in which the use rights are created,and that purchasers are required to pay;-Amount Due at Conclusion of Sale: a description (including theamount) of all amounts due from the purchaser at completion,together with a description of the purpose and method of calculatingsuch amounts;-Status of Real Property Title: an explanation of the status of the title tothe real property underlying the time-share-plan, including a statementof the existence of any lien, defect, judgment, mortgage or otherencumbrance affecting the title to the property, and how such lien,defect, judgment, mortgage or other encumbrance will be removed,satisfied or subordinated prior to completion;-Purchaser Financing: a general description of any financing offered thetime-sharing purchaser by the developing owner;-Pending Legal Actions Against Developer: a statement of any pendingsuits against the developing owner and of which such developingowner has actual knowledge;-Insurance Coverage: a description of the insurance coverage providedfor the benefit of time-sharing owners;