Scuba Scene Coastal Resort

PONTA PARAISO

Principles of Fractional Ownership:

-    The Shareholder/s purchase a share in the company that owns residential leisure property (Details of property included in annexure A).
-    Occupation of the property will be based on a fair rotation roster system.

Benefits of Fractional Ownership:

-    Value for money – you only pay for your holiday (4 weeks per year on rotation basis) and not for the rest of the year.
-    No maintenance problems – Scuba Scene ensures that you do not spend your holiday time on repairs and maintenance of your property by having an on site facilities manager and maintenance team to take care of all building maintenance and renovations.
-    Unlike timeshares, any increase in the value of your property accrues to you.
-    Less maintenance cost due to it being shared between all the property shareholders (maximum 10 shareholders per unit).
-    Ability to rent out un-utilized weeks.

Fractional Ownership Model:

-    A group of Investors / Owners purchase shares in a company that will acquire a completed, fully furnished home.

Management of the property:

-    The property and the Company that owns the property needs to be managed in respect of maintenance and service provisioning.
-    Scuba Scene will manage both the property and the company owning the property for a period of one year, this is vital as the Investors / Owners are likely not to know each other neither be familiar with the range of administrative functions necessary to offer a hassle free holiday experience.
-    After a period of one year the Company can exercise their right of decision to take over the management of the company.

-    Management of the property will however remain a Scuba Scene function due to the services required (sewage, refuse removal, water and electricity supply, maintenance ect).
-    Scuba Scene will guarantee discounts on bulk administrative functions

Transfer Duty:

-    The advertised price is all inclusive; all registration and company formation is included.
-    In respect of shares presented for re-sale, the price of such shares will be determined by the seller, the buyer will be responsible for the payment of the duty of transfer for the shares purchased.

Payment structure:

-    20% Deposit on acceptance/signing of the purchase agreement (contract)
-    10 % per month for the following six (6) Months
-    20% payable on Month seven (7), seven Months after the payment of deposit.

Example: Purchase price R290, 000.00

- 20% Deposit payable upon signing        = R58, 000.00
- 10% per Month for six months        = R174, 000.00
- 20% Final payment                = R58, 000.00

- Total    = R290,000.00

-    Each Fractional Ownership Company has its own Bank Account in which the monthly levies are to be deposited to, this account is managed and administrated by an independent Accountant.

Accounting and Auditing:

-    Each Fractional Ownership Company’s bank account is administrated in terms of the bank’s Third Party Fund Administration (TPFA) scheme by an independent Accountant. This Scheme also provides for an accountant to purchase Fidelity Insurance to cover claims in the event of any fraudulent use of company money or funds.
-    In aid of ensuring a “hassle-free” experience, the accountant of the Fractional Ownership Company is authorized to make payment on behalf of the company.
-    All Accounting practices and procedures to be audited from time to time or on request of the Shareholders.