Rental Pool Operations

12 Months Ended

Dec. 31, 2018

Nature of Business

Rental Pool Operations

9. Rental Pool Operations

In December 2013, a new Master Lease Agreement (“Agreement”) was agreed upon by both Management and the Lessors Advisory Committee (“LAC”). The Agreement commenced on January 1, 2014 for a period of ten years, replacing all lease agreements previously in existence. Under the Agreement, the Resort pays the Participant a quarterly distribution equal to 40% of the Adjusted Gross Revenues on the first $10 million, 45% between $10 million and $11 million, and 50% above $11 million. The Participants are also entitled to 35 nights in-season and complimentary gift certificates for golf and food & beverage. Their guests will be entitled to the same privileges as the Participants when occupying the participant’s units.