Your Questions Answered

The aim of this document is to introduce you to the Peninsular Club, its legal framework and to the company involved in its operation by means of answering some of the questions we believe you may have. We realise that you may well have additional questions or wish to discuss the points raised here in more detail. If so, please do not hesitate to contact us and we will be more than pleased to provide further information or to meet with you to answer your questions.

1. What is Peninsular Club at Las Lomas, La Manga Club?

Peninsular Club at Las Lomas, La Manga Club, is a luxury vacation club for members only, situated at Las Lomas at La Manga Club. Las Lomas comprises apartments and gardens with the following facilities: a large swimming pool with separate children's pool, poolside restaurant, children's play area, tennis court, and children's mini golf. We are proud to inform you that Peninsular Club at Las Lomas has been awarded five star status by Interval International. We make reference to this organisation again in paragraph 20.

La Manga Club's facilities, situated in circa 500 hectares, include golf courses, tennis courts and more – please see under paragraph 5 for detailed list. Certain facilities at La Manga Club are managed by the well known hotel operator, Hyatt International, whilst the remainder are managed by Inmogolf S.L. We refer again to this company in paragraph 3.

The Peninsular Club at Las Lomas is an exclusive five star club within La Manga Club consisting of 79 apartments of different types and with 51 week per year available in each apartment.. Membership of Peninsular Club entitles you to enjoy the sporting and recreational facilities of La Manga Club at preferential rate. (This is as described in the Appendix to this document. Paragraph 19 also refers).

You will see that the sections of this document we have just mentioned refer to the use of La Manga Club facilities at the "owner" rate and the "resident" rate. We should explain further - Inmogolf fixes the rate for use of La Manga Club's facilities. These rates are fixed and published (annually). Owners of real estate at La Manga Club receive discount as against the published third party rate. You will appreciate that the "owner" and "resident" rates provide savings against third party rate, and that Peninsular Club members benefit from these by paying "owner" rates for use of La Manga Club's facilities.

2. Where is Las Lomas, La Manga Club?

La Manga Club is situated on the Costa Calida in the region of Murcia in south east Spain. The historic city and port of Cartagena is situated some 20 kilometres away; Murcia, the regional capital, is about 50 kilometres away, while Alicante is some 80 kilometres to the north.

Peninsular Club itself is an attractive village style development situated within La Manga Club.

3. Who owns Peninsular Club at Las Lomas, La Manga Club?

La Manga Club is owned by Inmogolf S.L., (C.I.F. A-30610604) a Spanish incorporated company with address C.P. 30385, Los Belones, Cartagena, Murcia, Spain. Inmogolf S.L. is registered in the Registro Mercantil de Murcia, Volume 152, Section 3ª, Libro de Sociedades, folium 20, page 3262, inscription 1ª

Inmogolf is ultimately owned by MedGroup. It is from Inmogolf that members of the Peninsular Club will purchase their memberships, and it is Inmogolf that will be responsible for the running of Peninsular Club.

MedGroup a company specialized in integrated building estate development, in very specific segments of the market and with great potential for growth.

MedGroup operates in Spain and Portugal focussing particularly on the Mediterranean coast. The company's corporate values are based on consistency, accountability and respect for the environment. These principles translate in a sustainable architecture that is integrated in the landscape and built with esthetics in mind.

4. Has the scheme been legally formalised?

Yes, Peninsular Club has been formalised in a public deed and thus both the Notary and the Registrar have verified the legality of the scheme and entered it in the public record.

Peninsular Club is registered in the Land Registry in La Unión with the following registration details: Plot Nº 26.381, Section 1º, volume 716, Book 319, Folium 165. You can apply to the Register to obtain this essential information on the scheme to which your purchase of a membership is subject, with a full guarantee that it conforms to the law. The address of the Land Registry is C/. Mayor nº 46, La Unión, Cartagena, Spain.

5. What rights and privileges do I have if I become a member of the Peninsular Club?

5.1. The right to occupy an apartment at Peninsular Club of the type chosen during the season of year of your choice and the number of vacation units (weeks) selected, together with the right to use the sports and recreation facilities at Peninsular Club at no charge.

5.2. The right for yourself when using your accommodation privileges in accordance with the terms of your membership to use during the period of your stay the facilities at La Manga Club at the "owner" rate.

5.3. The right for any other person using your accommodation privileges in accordance with the terms of your membership (whether you are accompanying them or not) to use during the period of their stay the facilities at La Manga Club at the "resident" rate.

5.4. The right for yourself when staying in Peninsular Club outside the terms of your membership - i.e. during a rented period - to use during the period of your stay the facilities at La Manga Club at the "resident" rate.

5.5. The right for yourself and any other person using your accommodation privileges in accordance with the terms of your membership (whether you are accompanying them or not) to use during the period of your/their stay the gymnasium and the indoor pool at Las Lomas Spa at no charge.

5.6. Membership of an Association of Peninsular Club members should you so wish. This Association is a private club to which only members of the Peninsular Club may belong. It has been set up by Inmogolf primarily so that members may get to know one another and share social events in order to enjoy their membership of the Peninsular Club to the full.

5.7. As a special arrangement, you will also be entitled to the additional privileges described in the Appendix to this document, whilst staying at the Peninsular Club in the vacation unit(s), week(s) in the season of your choice.

Except for certain of the additional privileges which may have a limited period as referred to in the Appendix, members of the Peninsular Club are entitled to enjoy its benefits from the date they join until 31 st December 2040, so the sooner you join the better!

6. Which facilities are available in La Manga Club for me to use?

Peninsular Club has it's own tennis court which is free of charge for the members as is the heated swimming pool. Besides this there is another outdoor swimming pool and an indoor swimming pool situated in phase III of Las Lomas. A fully fitted fitness centre is available as well.

The facilities available in La Manga Club are 3 18-hole golf courses, 28 tennis courts, squash court, Bowling Green, Climbing Wall, Grazy Golf, Fitness Centre and Spa, Paddle Tennis. All these facilities are available for Peninsular Club's members as outlined under point 5.

7. How do I find out more about the availability of membership of the Peninsular Club?

Please contact a member of the Peninsular Club team. They will explain the types of membership currently available by reference to apartment type (we currently have studios, 1, 2, and 3 bedroom apartments to choose from); season (red, blue, yellow) and the number of vacation units (weeks) required. Peninsular Club can be contacted at the following address:

PENINSULAR CLUB AT LA MANGA CLUB, INMOGOLF S.L.,
C.P. 30385 Los Belones,
Cartagena, Murcia,
Spain.
Tel: +34 (9)68 17 50 00
Fax: +34 (9)68 17 50 55
E-mail: peninsularclub@lamangaclub.es

8. What will I have to pay to become a member of the Peninsular Club?

You will pay a one off joining fee for your membership. The level of this fee is subject to the usual market conditions of supply and demand and upon the type of apartment, season, and number of vacation units (weeks) you have selected. (See enclosed price list)

9. What outgoings will I have once I have become a member of the Peninsular Club?

Annual subscriptions will be payable to Inmogolf S.L. These will vary according to the size of the apartment type you have selected and will be calculated by reference to the number of vacation units (weeks) you have chosen. So, for example, if your membership entitles you to the use of a two bedroom apartment for three vacation units, you will pay the standard annual subscription for a two bedroom apartment multiplied by three. The level of annual subscriptions for each apartment type were fixed for 1997 and after that has and will rise only by the rate of inflation plus 1% save only for certain identified items which will be charged at cost. Annual subscriptions are payable on 1 st January each year in €uros. (See enclosed price list)

10. What do the annual subscriptions payable to Inmogolf cover?

The annual subscriptions cover :- · maintenance and repair to the apartments and the Peninsular Club facilities · gardening at Peninsular Club · cleaning and upkeep of the roads and pavements at Peninsular Club · street lighting at Peninsular Club · refuse collection at Peninsular Club · security at Peninsular Club and the rest of La Manga Club · maintenance and repair and replacement of furniture and equipment in the apartments · cleaning of the apartments (prior to arrival and twice during your stay) · accommodation reservation services · reception services · travel information services · sports reservation services · restaurant reservation service · Peninsular Club management services · insurance cover (except for member's personal belongings) · Spanish property taxes · sinking fund to cover depreciation costs · sports club fees as appropriate for La Manga Club

We should point out that the following are included amongst items for your own account: the cost of electricity used by you in the apartment during your stay; the costs of any telephone calls you may make; the costs for baby sitting and children's camp; the costs of poolside refreshments; costs of use of computer facilities, etc.

11. If I wish to become a member of the Association, will this involve any cost?

Each member of the Association will pay an annual fee to cover the Association's costs. The level of this fee remains to be agreed between the members of the association themselves. So, you will have a say in fixing the amount of the outgoings of the Association and of the level of the members´s fees.

12. I am concerned that the quality of the maintenance of the Peninsular Club facilities remains high. What assurance can you give?

Inmogolf is responsible for the maintenance of the Peninsular Club's facilities and, indeed, is contractually bound to each member to maintain these facilities to an international five star standard. In return, you contribute on an equitable basis towards these costs by paying the annual subscription we have described.

13. How do I become a member of the Peninsular Club

After presentation, and your indicating your wish to pursue membership of the Peninsular Club, you will receive the following documents in Spanish with an English translation :-

13.1. Membership Agreement - This is the contract between Inmogolf and yourself which governs the terms of your membership of the Peninsular Club. It will include details of the type of apartment you have selected; the season and number of vacation units (weeks) of your choice; the apartment purchase price and the level of annual subscriptions; your rights and obligations together with those of Inmogolf S.L.

13.2. Notarial Deed - This document, already executed and publicly registered by Inmogolf, formally declares that the assets of the Peninsular Club owned by Inmogolf are to be used for the Peninsular Club scheme.

13.3. Bylaws of the Association - We have already referred to the Association. The Bylaws set out the "constitution" of the Association - for example: they detail the purpose of which the Association has been formed, the qualifications for the membership of the Association and the details of its administration.

If, after reviewing the documents, you wish to become a member of the Peninsular Club, all you need do is sign the Membership Agreement. The purchase price is payable within the 15 th and the 30th day following to the signature of the Membership Agreement.

As the Peninsular Club at Las Lomas is owned by a Spanish company and situated in Spain, the Membership Agreement is governed by Spanish Law and subject to the jurisdiction of the Spanish courts. We will ask, therefore, that you sign a Spanish version of the Membership Agreement. We have, of course given you an English language translation of all three legal documents. The translations have been certified by a Notary as being accurate translations.

You will be given a "cooling off" period of 14 days starting from the date the Membership Agreement is entered into, in which to re-think your decision to join the Peninsular Club. If you wish to cancel the Membership Agreement you have signed you may do so in this period.

When you are given the Membership Agreement and the other legal documents referred to, you will also be given notice of your right to cancel the Membership Agreement. We will specify the date by which notice of cancellation must be given either in the notice we give you with the legal documents or in a further notice to be given subsequently. The need for a further notice specifying the said date may arise because the "start date" of the 14 day period runs from the date the Membership Agreement is "entered into" i.e. the date when the document has been signed by both yourself and Inmogolf. When we first give you the documents, we may not know exactly when the "start date" will be.

Please be assured, however, that you will receive a period of 14 days from the date the Membership Agreement is entered into in which you may cancel the Membership Agreement, if you so choose.

If you do wish to cancel the Membership Agreement, all you need do is notify Inmogolf S.L. by post using the cancellation form provided. If the form is sent by post in a properly addressed and prepaid envelope, notification of cancellation is treated as given at the time of posting. The date of posting must, however, fall within the 14 day period we have mentioned.

If you cancel the Membership Agreement within the time limit, please be assured that you will have no further obligations.

If by the end of the 14 day "cooling off" period you have not cancelled your Membership Agreement, we will await payment of the deposit and balance of the purchase price and, on receipt of the balance amount, we will issue you with a Membership Certificate and welcome you to membership of the Peninsular Club.

14. How are my rights as a member of the Peninsular Club protected?

Your rights are protected by the contractually binding commitments given to you by Inmogolf in the Membership Agreement. These include, for example, a commitment by Inmogolf S.L. not to transfer the assets of the Peninsular Club unless the transferee accepts all Inmogolf´s obligations in respect of the Peninsular Club and its members.

To give you further assurance, Inmogolf has also executed the Notarial Deed described. Amongst other things, the Notarial Deed repeats the commitment given to you by Inmogolf S.L. in the Membership Agreement that Inmogolf S.L. will not transfer the assets of the Peninsular Club without protecting your rights as a member. We have mentioned that the Notarial Deed is registered as a "public" document. This means it is already registered with a Notary.

15. What costs will I incur on becoming a member of the Peninsular Club?

There are no costs other than those we have described unless you incur any costs on your own account by consulting a lawyer or advisor.

16. I am now a member of the Peninsular Club. How do I become a member of the Association?

All you need do is to contact Peninsular Club's Member Service Department who will forward your details to the President of the Association. You will then be issued with documentation evidencing your membership of the Association.

17. How do I reserve the use of an apartment for my vacation unit(s) in the season I have chosen?

Simply contact the Peninsular Club reservation office by letter, fax or e-mail at any time up to 11 months prior to your preferred date of arrival with details of your preferred vacation dates.

If reservation is made as described above, then we can guarantee your occupation of an apartment of the type of your choice, in the season you have chosen and for the number of vacation unit(s) week(s) selected. We regret, however, that we cannot guarantee occupation in any specific weeks, or specific apartment. Availability and apartments are allocated on a first come first served basis.

18. May I visit the Peninsular Club in a season other than the one I have chosen?

Yes - subject always to availability. We would point out that you may only seek to make arrangements to visit the Peninsular Club in these circumstances within a period of 90 days prior to your desired date of arrival.

If you wish to visit in a season other than the season you have already chosen for your membership, you may be asked to pay a fee by way of cash or surrender of the vacation unit(s) (week(s)) in the season you have chosen.

Further details of the matters discussed in this paragraph are set out in the current Guide to Reservations which you have received.

19. What happens if I am not able to visit Peninsular Club at all in the season I have chosen?

You may accrue the number of vacation units you have purchased for up to two years, and take them in the second or third year in your season entitlement. In the event that you do not use them by the third year, those accruals fall away and cannot be used. Reservation of accruals are subject to the three months rule.

20. Are there any exchange schemes in operation?

Yes. The Peninsular Club is currently affiliated to the international exchange organisation known as Interval International. Peninsular Club members will enjoy subscription-free membership of Interval International for the first four years of their membership of the Peninsular Club. Membership of Interval International entitles you to exchange your accommodation privileges at the Peninsular Club for privileges at a wide range of luxury resorts worldwide subject, of course, to the terms and conditions of Interval International.

A copy of the certificate signed by Interval International that confirms the affiliation of the resort is attached this document.

21. Can I allow other people to use my accommodation privileges at the Peninsular Club?

Yes. You may allow friends and guests to use your accommodation privileges. You may also privately let out your accommodation privileges but we do not, however, allow commercial or "pooled" lettings.

Any person you allow to use your accommodation privileges may use the facilities at Las Lomas free of charge. They are entitled to use the other facilities a La Manga Cub at the prevailing "resident" rate.

However, as you will appreciate, you remain liable for any damage caused or replacement needed as a result of such use.

We should point out that, whoever is using the accommodation privileges, the reservation procedures set out in paragraph 17 must be followed.

22. May I transfer my membership of the Peninsular Club?

Yes. However, the arrangements differ depending upon the circumstances :-

22.1. You may transfer your membership by way of a gift at any time to members of your immediate family (i.e., parents, parents in law, children).

22.2. You may not transfer your membership to any person for money or other consideration for a period of three years from the date you become a member. If you decide to sell your membership after this three year period, you may only sell through Inmogolf S.L. who will provide a sales service to assist you (charging a sales fee equal to 5% of the sales price agreed).

23. What happens to my membership of the Peninsular Club in the event of my death?

Your membership will pass by your heir(s) - provided that you are up-to-date with the payment of your annual fees. A transfer fee will be payable and your heir(s) will be asked to confirm that they accept all the Peninsular Club membership obligations.

24. What about the practicalities?

The apartments :

24.1. Cleaning - the apartments will be cleaned and prepared in readiness for your arrival. It will also be cleaned twice during each week of your stay.

24.2. Air-Conditioning/heating - the apartments have air-conditioning and heating systems for your comfort whatever the season.

24.3. Linen/towels: - each apartment is fully equipped with all necessary linen and towels (including swimming towels and dishcloths). A fresh supply is provided at the beginning of each vacation unit (week) and again at the weekly clean.

24.4. Baby cots, high chairs etc. - will be made available if requested at least seven days prior to the date of your arrival.

24.5. Check-in days and times - each vacation unit (week) begins on a Saturday. You may check into the apartment at any time from 16.00 hours onwards. In order to allow us enough time to clean and prepare the apartments for the new arrivals, check out time on your day of departure is 11.00 hours.

25. On a final note, we would add,

25.1. that the above details are correct as at the time of printing (June 05). Changes may occur and we will, of course, be pleased to update you when you visit us.

25.2. that the rights you acquire as a member of the Peninsular Club are personal rights and not rights in property.

25.3. that Inmogolf has the right to terminate membership of the Peninsular Club, if a member does not keep up with payments of the annual subscription to which we have referred.

25.4. that reading this document cannot be, and is not intended to be, a substitute for your reading the contents of the legal documents we have referred to in paragraph 11 and which alone govern your membership of the Peninsular Club. You may not rely upon any of the contents of this document as constituting legal advice.

25.5. that the purpose of the Peninsular Club at Las Lomas is to provide a service for members who wish to book and use holiday accommodation. It is not to be viewed as an investment for the purpose of yielding an income or making a capital gain.

25.6. that nothing in this document constitutes a representation or forms part of any contract.

THE APPENDIX

The additional privileges referred to in paragraph 4.4

A. Whilst staying at the Peninsular Club, you, as registered member(s) of the Club may enjoy as a concession, any of the facilities at La Manga Club at the applicable "owner" rate.

B. As registered member(s) of the Peninsular Club you are entitled to a credit amount to be used at your discretion as follows:

B.1) By purchase of a studio apartment: 1,000.00 € per week purchased

B.2) By purchase of a 1 bedroom apartment: 1,500.00 € per week purchased

B.3) By purchase of a 2 bedroom apartment: 2,000.00 € per week purchased

This credit can be used by yourself or any other person using your accommodation privileges (whether you are accompanying them or not) in La Mange Club's sports facilities, incl. the La Mange Club Spa.

The rate used will be "owner" rate when you are using your accommodation privileges in accordance with the terms of your membership. In La Mange Club Spa the rate will be the prevailing list price minus 50%.

The rate used will be "resident" rate when you stay in Peninsular Club outside the terms of your membership – i.e. during a rented period. In La Mange Club Spa the rate will be the prevailing list price.

The rate used will be "resident" rate for any other person using your accommodation privileges in accordance with the terms of your membership. In La Mange Club Spa the rate will be the prevailing list price.

The credit does not have any cash-back value and cannot be sold on to a new member in case you should sell your membership.

C. to enjoy, free of rental and insurance costs, the use of a small car (group A) for a period of two years after becoming a member (petrol and other costs remain to your own account).

D. to use free of charge on-site transport service operated by Inmogolf S.L. which may be available at La Manga Club.

E. To use free of charge the indoor pool and gymnasium in Las Lomas Spa.

F. to enjoy a free subscription to the "Club at the Hyatt" card for the first two years of your membership of the Peninsular Club

G. to enjoy a free subscription to the exchange organisation "Interval International" for the first four years of your membership of the Peninsular Club.

H. to take the benefit of a discount of not less than 5% of the list price should you purchase a new property at La Manga Club from Inmogolf S.L.

Whether two people have signed the contract (joint membership) or you alone have signed the contract (single membership), it is only the signatories of the contract who can enjoy the sports facilities a "owner" rate, inclusive when using the credit mentioned under point B. If you allow any other person to use your credit whether it is a spouse, a child or a companion the rate to be applied for enjoyment of sport will be "resident" rate.

The privileges B. C. F and G. will, in case of joint membership, have to be executed by both of you or by one of you, representing the joint membership.

All the above additional privileges are subject to availability and to any regulations or conditions of use of the facilities mentioned prevailing from time to time.