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      Club Membership

      1. What is Distinctive Holiday Homes?

        Distinctive Holiday Homes is the ideal vacation. It is a luxury residence Club, offering amazing vacation experiences with family and friends. Members enjoy access to a collection of private multi-million dollar vacation Destinations located around the world, all without the often significant hassles or expenses of second home ownership.

      2. What is a Destination Club?

        Residence Clubs are the ultimate vacation experience.

        Club Members benefit from flexibility, a variety of Destinations, amazing homes, unparalleled service and the finest amenities. A Destination Club Membership combines the benefits associated with second-home ownership with the services and amenities found at luxury resorts.

      3. Why should I join a club instead of existing luxury travel options?

        The one-time 80% refundable Membership Joining Deposit is less than a deposit on a house, and the Annual Dues are less than what you would pay in just property taxes and maintenance, let alone rental cars, food and beverages, a concierge and daily maid service.

        You have an ever-expanding choice of luxurious and fully serviced Destinations in dozens of locations worldwide.

        Renting a holiday home or motor yacht is expensive, and you are never sure if it will measure up.

        Owning a second home or motor yacht is also expensive if you only use it a few weeks a year and it is in only one location.

        Let someone else worry about the maintenance, staffing and local regulations.

        Let someone else do the cleaning, shopping and actually have a real holiday.

        Having someone local to take care of your dinner reservations, ski lift tickets, and the likes of theater tickets is so much easier.

        Standing in line at the rental car company or hotel check in counter is not what you should be doing on vacation!

      4. What are the main benefits of a Distinctive Holiday Homes Membership?

        First, Members have access to a stunning collection of multi-million dollar Destinations in the most desirable locations around the world.

        Second, we do all the work so you do not have to. When you are ready to travel, your dedicated concierge team is available to answer your questions and help you reserve your holiday. Before you arrive, they will handle grocery shopping and arrange for transportation, restaurants, golf tee times, lift passes or those hard-to-get theater tickets. Upon your arrival, the Concierge will continue to fulfill your every request - be it arranging for a private chef or planning an adventure for your children. In addition the club provides daily housekeeping and laundry services in every Destination, so you can relax and enjoy your vacation.

        Third, Membership with Distinctive Holiday Homes eliminates all the hassles and obligations associated with owning your own property. Gone are the days of visiting your mountain home in the winter to discover that a frozen pipe has burst. Distinctive Holiday Homes Members never experience that twinge of guilt that so many second home owners do when they choose to vacation somewhere other than their second home. In addition, the property taxes, insurance and even homeowner association fees that can make ownership a chore are not your responsibility: they are ours.

      5. How many destinations do you have and in what locations?

        There are currently twelve Destinations available throughout Australia, New Zealand, Fiji, USA, France and Italy, including an 86' motor yacht and a 53' sailing yacht located in the South of France.

        There are more properties planned for 2008/2009, including a Manhattan residence in New York, a 68? motor yacht in the Bahamas and East Coast USA, a property in the Caribbean plus many more.

      6. What is the cost of membership?

        Members have several Membership Plans and Pre Paid Cards to choose from, depending on their needs. All Membership Plans and Cards provide access to the same luxury homes and services. If a Member on a particular Membership Plan chooses to leave the Club, the Club will refund 80% of the Initial Membership Deposit.

        Pre Paid Membership Cards

        Pre Paid Membership Cards are a good option for those who don't want to commit to an ongoing annual payment or may not be sure when they will next holiday. The Cards allow you to pre-purchase a certain number of weeks and use them when you like over an allotted four-year timeframe. The Cards provide access still at less than retail and with much more flexibility. The Cards are non-refundable.

        1. Bronze Pre Paid Card has a non-refundable one-time fee of $30,000 , providing 14 confirmed days usage valid for a period of up to 4 years. It has a Space Available Booking window of 60 days.
        2. Silver Pre Paid Card has a non-refundable one-time fee of $40,000 providing 21 confirmed days usage valid for a period of up to 4 years. It has a Space Available Booking window of 90 days.
        3. Gold Pre Paid Card has a non-refundable one-time fee of $50,000 providing 28 confirmed days usage valid for a period of up to 4 years. It has a Space Available Booking window of 90 days.

        Annual Plan Memberships - Non-Corporate

        1. Lite Membership has a one-time Membership Joining Deposit of $59,000 for 7 days usage per year and Annual Dues of $5,900. It has a Space Available Booking window of 30 days.
        2. Standard Membership has a one-time Membership Joining Deposit of $119,000 for 14 days usage per year and Annual Dues of $11,900. It has a Space Available Booking window of 60 days.
        3. Premium Membership has a one-time Membership Joining Deposit of $179,000 for 21 days usage per year and Annual Dues of $17,900. It has a Space Available Booking window of 90 days.
        4. Deluxe Membership has a one-time Membership Joining Deposit of $239,000 for 28 days usage per year and Annual Dues of $23,900. It has a Space Available Booking window of 90 days.
        5. Platinum Membership has a one-time Membership Joining Deposit of $299,000 for 35 days usage per year and Annual Dues of $29,900. It has a Space Available Booking window of 90 days.
        6. Diamond Membership has a one-time Membership Joining Deposit of $329,000 for 42 days usage per year and Annual Dues of $32,900. It has a Space Available Booking window of 90 days.
        7. Elite Membership has a one-time Membership Joining Deposit of $499,000for 7 confirmed* days usage per year and Annual Dues of $49,900. It has a Space Available Booking window of 90 days.

        Annual Plan Memberships - Corporate

        1. Premium Membership has a one-time Membership Joining Deposit of $199,000 for 21 confirmed* days usage per year and Annual Dues of $19,900. It has a Space Available Booking window of 90 days.
        2. Deluxe Membership has a one-time Membership Joining Deposit of $259,000 for 28 days usage per year and Annual Dues of $25,900. It has a Space Available Booking window of 90 days.
        3. Platinum Membership has a one-time Membership Joining Deposit of $329,000 for 35 days usage per year and Annual Dues of $32,900. It has a Space Available Booking window of 90 days.
        4. Diamond Membership has a one-time Membership Joining Deposit of $349,000 for 42 days usage per year and Annual Dues of $34,900. It has a Space Available Booking window of 90 days.

        All Club Members with Annual Membership Plans may purchase additional Space Available nights beyond their Confirmed Days for a flat nightly fee of between $450 and $950 depending on their chosen Membership Plan.

      7. How do I join Distinctive Holiday Homes?

        There are a few easy steps to becoming a Member. You can either contact us by phone or fill out the Web Form asking for more information. We will then either contact you directly or send you the information and then follow that up with a phone call.

        Once you have completed the application form and questionnaire, and also reviewed and agreed to the Club rules, we will process and then advise you if your application has been successful, you may be placed on a wait list at this point.

        Typically, the waiting period if required lasts between six to eight weeks until additional Destinations are opened to Members. The wait list helps ensure that all active Members have ample access to Club residences. Once you are released from the wait list, you become an active Member and are able to start booking reservations.

      8. Is there a cap on membership?

        We expect our Membership base to grow, as more Members means the ability to add more residences, more Destinations and better premium services, giving you more choices. However, we want to maintain a very personalized service. Our ability to deliver this level of service will be the influencing factor in our ongoing Membership level.

      9. Can a member "will" his membership to another person?

        Yes, Club Memberships can be transferred upon death to another person directly related to the Member.

      10. How many people have resigned from the club so far?

        To date there have been no membership resignations.

      11. Who is able to book or use the destinations?

        The Destinations may be used by you, your partner, your adult children, and depending on the plan selected, your Extended Family, being your parents, siblings and grandparents.

        You may also bring as many guests to the occupancy limit of the Destination.

      12. Can a Membership be resold?

        No, memberships cannot be resold.

      13. Is there a waiting list to join?

        No, currently there is no waiting list.

      14. Is there a waiting list to resign?

        No, there is no waiting list to resign.

      15. What is the process for leaving the club?

        If you want to resign your Membership, you would first inform the Club, you would then be put in the resignation queue, on a first in first out basis. You are able to leave the Club on a one in one out basis, which means each time a new Member joins, it is possible for someone waiting in the resignation queue to leave the club and have 80 % of their Initial Membership Deposit refunded.

      16. If I leave the Club what happens to my bookings and any refund of my annual Dues?
        Until a Membership is canceled, a Member is still able to make bookings, and will be liable for any Annual Dues that might fall due. Once the cancellation has been processed, the Member will be refunded 80 % of their Initial Deposit, and any bookings that are in the system will be automatically canceled. Furthermore any Membership days remaining unused for that year will be refunded in proportion to the Members Annual Dues.

      Destinations and Residences

      1. How many destinations are currently available for member use?

        There are currently 12 Destinations open.

      2. Will Distinctive Holiday Homes continue to add new destinations?

        Yes. As Membership grows, the Club plans to add new residences and Destinations to its portfolio. We will be adding a new destination each time 6 - 7 new "members" join.

      3. What is the average size of the residences in the portfolio?

        The Club categorizes its Destinations into five types: Beach, Mountain, Country, City and Ocean - depending on the location.

        Beach residences have a minimum of three bedrooms, but often are four bedrooms, sometimes five. They are from 3,000 square feet to over 4,500 square feet of living space.

        Mountain residences have a minimum of three bedrooms, but more often are four bedrooms, and are 3,000 square feet to over 5,000 square feet.

        Country Destinations include Multi Member, spas, golf and other unique locales. The homes range in size with floor plans varying by destination.

        City Destinations typically have two or more bedrooms and are 1,500 square feet or larger.

        Ocean is either motor yachts, yachts or Apartments on various cruise ships. They vary in size from 3 to 4 cabins.

      4. How do the residences compare to luxury hotel rooms or houses?

        The Destinations have an average value of $3 million, and combine the spacious elegance of a private home with the services, and conveniences of a luxury lodge.

        The delightful sense of being welcomed home is magnified at Distinctive Holiday Homes by the attention we place on the details.

        You will always find the pantry and refrigerator packed with your favorite food and beverages, replenished throughout your stay.

        A luxury motor vehicle with Navigation is waiting for you in the garage.

        Each Destination is provisioned with everything you will need - from books, magazines, games and movies, to outdoor and gym equipment.

        The concierge is there to make sure you want for nothing. Our daily maid and laundry service makes sure your time is spent enjoying your vacation.

        All of the Destinations have been decorated with style and comfort in mind - designer linens, over sized bath towels, bathrobes, fine tableware, state of the art televisions, audio equipment and appliances, along with Internet access and Pay TV services.

        We have made every Destination child friendly, with specially selected activities, games, toys, books and movies.

      5. What is the current average appraised value of the club's Destinations?

        The current average value of the current Destinations is $3,280,000.

      6. Do members have any say in future Destination choices?

        We survey all Members regularly to see which Destinations they would like to see added to Club's portfolio, the Club exists for the Members, so their input is very important.

      7. What process is used to determine the locations of Destinations?

        The Property Committee regularly surveys the Members to see what Destinations they would like to see added to the Club's portfolio. They then determine what the current mix of Destinations are, and if we are "light" in any particular category.

        They also look at where all the Members are located, and if we have enough Destinations close to where our Members live and spend most of their vacation time.

        Then they look at the property market in each of the locations that are "short listed", and then determine if a Destination that meets the Club's standards can be secured within the budget.

      8. What percentage of the portfolio is owned vs. leased?

        We do not lease more than 10 % of our properties, and if we do lease this is to test a new location, and the leases are backed with an option to purchase. The club owns 90 % of the homes and all the yachts.

      9. How are the Destinations furnished?

        We spend a significant amount of time, setting up each Destination, all the furnishings are selected for style, comfort and usability, all Destinations have the latest flat screen TV's, a myriad of appliances and all the amenities such as, bathrobes, slippers, over sized bath towels, quality soap products, and other extras where appropriate such as, hot tubs, swimming pools, billiard tables, pizza ovens and wine cellars.

      10. Do Members have access to a vehicle at the Destinations?

        Yes. At most, Destinations there is one or more luxury motor vehicles, which are equipped with Navigation, solely for your use.

      11. Are pets allowed?

        No, at this time no pets are allowed.

      12. Is smoking allowed?

        Smoking, is not allowed anywhere inside the Destinations.

      Reservations and Access

      1. What system does the club use for reservations?

        We have our own proprietary on line reservations system, which allows you to book using the Internet, however you can also make a reservation by telephone with anyone of the 4 offices in Los Angeles (USA), Cannes (France),Oxfordshire (UK) or Auckland (New Zealand).

      2. What system does the club use for peak reservations at holiday times?

        We use an Advance Booking Credits system, and for special holiday times e.g. Christmas/ New Years, you need to use more of these credits to secure these dates, versus any other time of the year. In addition, to make sure all Members have fair access to the Destinations, Members cannot book the same Destination, at the same time in two consecutive years.

      3. How do you make sure there is enough availability?

        The Memberships that we accept are spread globally, this way not everyone is trying to go on vacation at the same time. For example in Australia and New Zealand the summer school holidays are mid Dec - early February, while in the USA it is in July - August.

        We also actively under utilize the Destinations, with most only used on average 50 percent of the year.

        The Occupancy forecast for 2008 is forecast to be around 20 - 30 % i.e. we will use only 20 - 30 % of available weeks to deliver all Members 100 % of their vacation weeks.

      4. Can I test the reservation process and the club before I join?

        Yes, you can join on a Trial Membership basis. You can make a reservation and stay up to 2 - 4 nights at one of the club destinations for only $1,500 per night, to see if the Club is for you. In addition, if you have a Club Destination in your area, you are more than welcome to make an appointment to view the property without staying overnight.

      5. What occupancy rate will the Club run at on a year round basis?

        The maximum occupancy will be determined by the Members usage, however we do not expect to exceed 65 %.

        Occupancy for 2008 is estimated to be 22%

      6. Can I visit a destination before I join?

        Yes. We allow you to use the reservation system to make a booking and stay up to 2 - 7 nights at one of the club destinations for only $1,000 per night, to see if the Club is for you. Then if you choose to join the Club, the cost of your mini vacation will be credited to the cost of the Membership Plan you select.

      7. Can I change my mind after I join?

        Yes: We will refund 100% of your fees within the first 90 days of your joining date if you haven?t made or used a booking, or 7 days post your last day of your first stay at one of the Destinations, less the cost of any nights stayed, whichever comes first. Or, 100% of your deposit within 364 days of joining, on a 1-in-1-out basis, if you have not yet made or used a booking within this time frame (See Guide to Member Benefits in regards to Membership Resignation).

      8. What is the member to property ratio?

        We will operate a ratio of between 6 members to 1 destination and 7 members to 1 destination.

      9. Will the ratio change over time?

        The Club has no plans to changing the ratio.

      10. Can a member roll over any unused days or benefits from one year to another?

        Yes. Depending on the Annual Member Plan you can roll over either 7, 14 or 21 days from the current year to the next or roll 7, 14 or 21 days from next year to the current year (see the Guide to Member Benefits for more a more detailed explanation).

      11. What are the check in and check out times and are they flexible?

        Check out time is 11am and check in time is 3pm, and they are only flexible if there is nobody checking in or out, before your arrival or departure.

      12. Is there a minimum stay period?

        Yes. There is a 2 day minimum for all Destinations.

      13. How does a Member check availability?

        You can use the Internet Reservations System or telephone one of our four offices worldwide.

      Fees and Charges

      1. What additional services are provided by the club and included in the annual dues?

        Included in the annual dues are: An on site concierge (one for each Destination), a daily house-keeping service, food and beverage, including alcohol, to the value of $500 per week, daily laundry service (not including dry- cleaning), and a regularly updated and extensive collection of books, magazines, movies and games.

        In addition, depending on the Destination, the use of one or more luxury vehicles (usually BMW or Audi), and or a boat.

      2. Are there any other fees that can be charged over and above the annual dues?

        Yes. For between $450 - $900 per night depending on your Plan, you can make an unlimited number of bookings over and above your Confirmed Vacation Days per year.

        You may also be charged for additional food & beverages consumed over and above the weekly limit, and for fuel, telecommunications (other than Internet), and any 3rd party services you ask us to book for you e.g. ski lift tickets, theater tickets etc.

        There are fuel and port charges for the use of water based Destinations

      3. At what rate can you increase the annual dues each year?

        The club may only increase the annual dues by 3.5 % plus the Chained Consumer Price index (C-CPI-U).

      4. What percentage of the Membership fees is refundable?

        80% of the Initial Membership Deposit is refundable on one-in-one out basis. 100% is refundable within the first year of membership (see Guide to Member Benefits).

      5. How much of the Initial Membership Deposit goes towards purchasing the Destinations?

        100% of the refundable portion of the Members Initial Deposit is used to purchase the Destinations.

      6. Are Members purchasing an ownership stake in the property?

        No, this is not an investment. Members do not have any ownership stake in the Club.

      Financial Strategy

      1. Can you tell me about the financial strength of Distinctive Holiday Homes?

        We take a very conservative approach. Our Members appreciate that our Club Rules Agreement includes specific commitments from the Club regarding use of Member Deposits and the Clubs debt position. These commitments demonstrate our commitment to financial responsibility. None of the Club Destinations is leased. Currently, the Club has over $25 million dollars of debt free assets. Your Membership Deposit is primarily used to finance the Club's assets. The Club takes legal title to every Destination, and those assets back your Membership Joining Deposit. The Annual Dues you pay each year covers the operational costs of the Club.

      2. What happens if I resign my membership?

        If you choose to resign your Membership, we will refund 80% of the Initial Membership Deposit. Similar to a golf or country club, Distinctive Holiday Homes has a one in, one-out Membership resignation policy. Each resigned Membership is placed in the refund queue and when your resigned Membership moves to first on this list, you will receive your refundable Membership deposit. You may introduce a new Member to take over your Membership and bypass the queue.

      3. Who is behind Distinctive Holiday Homes?

        The founders of Distinctive Holiday Homes have many years of combined experience in the real estate, travel, leisure and hospitality sectors with companies known for service, excellence and success.

        Information about the founders can be found on the website in the About Us section

      4. What are the goals of the Founders/shareholders?

        The Founders of Distinctive Holiday Homes plan to deliver Members multiple Destinations in over 100 different locations worldwide, with an approximate mix of 85% land and 15% water-based Destinations.

      5. What happens if the club winds down?

        If the Club winds down, the portfolio of property will be sold and the funds dispersed as follows:

      6. 1. Secured creditors, such as banks and lenders
      7. 2. Members
      8. 3. Third party creditors
      9. 4. Shareholders
    • How much debt is to be used to purchase the Destinations?

      The average mortgage debt to equity ratio will not be more than 50%. The current Y/E 2008 forecast it is estimated to be less than 25%

    • What sort of financial reporting will I have access to?
      The Club has a letter from our US accountants stating our ?book value? Net Assets to refundable Membership Deposits is 11.3467 to 1. The requirement of the Destination Club Association (DCA) is .66 to 1. An independent financial audit is planned for the 2008 Financial Year onwards.
    • Is Distinctive Holiday Homes a Member of the Destination Club Association and does it follow the guidelines of the Association?
      Distinctive Holiday Homes will be a Member of the DCA before the end of 2008, and has already incorporated all of the relevant rules and guidelines in the current Guide to Member Benefits.