PINNACLE CLUB

The Pinnacle Club is the extraordinary alternative to luxury vacation home ownership, where, as a real estate owner, you can call our entire portfolio of destinations home. Your one-eighth deeded ownership allows full vacation rights at all of our Pinnacle Gold Collection destinations. Our Phase One offerings are priced between $114,900 and $139,900, eliminating most of the cost of whole home ownership, while providing all of the reward. As a Pinnacle Club member you will have none of the hassles of maintaining a home. Your luxury home will be professionally managed and meticulously cleaned. All you do is show up and enjoy. You will also have the optional convenience of a professional concierge that will take care of all of your vacation needs, from stocking your groceries and beverages to making your dinner reservations. If at some point, you decide you no longer want to take advantage of all that a Pinnacle Club membership has to offer, your share can be sold or we will buy it back. A Pinnacle Club membership is an affordable, investment savvy, worry-free, no strings attached, dream vacation home opportunity.

Ownership
Fees
Reservations
Resale
Competition Comparison

Ownership
Ownership status is attained by purchasing a share of a home from Pinnacle Club LLC or one of its subsidiaries. Each share is a one-eighth deeded interest in a home. Once the purchase is complete you are automatically a Pinnacle Club member, and can use any of the homes in the Pinnacle Gold collection. Terms of usage are specific to each property, and the details are contained in the reservation policy. As an owner you will share proportionately in the equity growth of the Real Estate. Pinnacle club will provide a yearly appraisal, acquired from an independent source. Pinnacle properties are located in desirable vacation destinations, giving you an opportunity to own property in dynamic markets once reserved for only the elite few. Pinnacle Club maintains a maximum member to property ratio of 8:1 to ensure a high level of exclusiveness and availability. Members have access to our portfolio of properties at virtually anytime.

Fees
As an owner you will be subject to yearly dues, which will be paid quarterly. These dues are used to pay taxes, insurance, cleaning services, utilities, maintenance, HOA fees & other cost associated with the home. Quarterly dues are estimated for 2006 to be $1,000. Pinnacle Club maintains an open book policy for yearly dues and charges a 15% fee for overhead. There are no other fees associated with home ownership or usage.

Reservations

Advance Reservations
As a member of the Pinnacle Club you are allowed 35 days of advanced reservation use per year. The maximum number of contiguous weeks is limited to two, and usage is divided into a peak and regular season. All reservations made within the peak season must be in 7 day increments, and there is a 14 day maximum for peak season usage. All bookings during peak season are Saturday to Saturday. Advanced reservations at your titled property may be made eleven months from your first vacation night. Advanced reservations at other Pinnacle Club homes can be made up to six months from your first vacation night. This policy ensures that there is sufficient availability for all members, ability to plan special vacations, and freedom to schedule spontaneous getaways.

Spontaneous Reservations
Members can also book an unlimited number of last minute vacations on a space available basis. Spontaneous reservations can be made at any time within 30 days of the first night of the vacation. They will not be subtracted from allotted 35 advanced reservation days and are without nightly fees. No more than one spontaneous reservation can be made at any given time to ensure equal access to all members.

*Reservation policies may vary or change in regards to specific destinations to ensure availability of vacation time and quality of service to all members.

Reservation Procedure Options
1) Call the Pinnacle Club directly on our toll free reservation line
2) Email
3) Online via Members Only section of the Pinnacle Club website

Resale / Transfer Policy

Owners are free to sell their share in the club at any time.
Transfer paperwork will have to be filled out with Pinnacle for the transfer to take effect.
Pinnacle will take a 5% transfer fee from members selling shares on their own.
Pinnacle will offer to help sell shares for owners wishing to exit the club.
The transfer fee for shares sold by Pinnacle on behalf of the member is 10%.
In the event that the owner cannot sell his share, and Pinnacle has been given 180 days to help the member sell, Pinnacle will, at the request of the owner, purchase the share from the owner at 75% of the Fair Market Value of his share. This amount will never be less than 90% of the purchase price.
Fair Market Value will be independently determined from multiple sources and will be made available at the time of entry into the club as well as on the website updated on a yearly basis. This will allow the members to assess where they stand with their investment as well as the implications and options of exiting at any given time.
Assuming the properties increase in value this can also be used as a marketing tool for potential members.
Default by more than 30 days for 2 consecutive quarters’ maintenance fees will result in a freeze on usage and possibly execution of a forced transfer of your share back to Pinnacle at 75% of FMV.

Competition Comparison

	Fractional	Timeshare	Whole Ownership
Owner-to-property ratio	8 to 1	50 to 1	1 to 1
Yearly Usage	35-unlimited days	14 to 21 days	Unlimited
Recurring Fees	$4,000 / Year	$800 - $3000 / Year	$24,000 / Year
Destination Options	10 to 14	2 to 3	One
Initial Cost	$100,000	$50,000	$1,000,000
Size of Homes	3000 sq feet	1200 sq feet	3000 sq feet