12.5 SENIORS’ MEMBERSHIP POLICY

1.0 PREAMBLE

We recognise that we have a number of elderly shareholders who experience difficulty paying the annual maintenance fee.

2.0 PHILOSOPHY

The Board is sympathetic to the situation of these long-time, elderly shareholders who can no longer handle the burden of an annual maintenance fee, and offers an alternative to disposing of their week that will provide them with the opportunity of still being able to enjoy the benefits of the resort and the exchange system.

3.0 PROCEDURES

3.1 Shareholders who feel the burden of the annual maintenance fee will be advised of all the avenues they have available to them, viz

3.1.1 The payment of the maintenance fee by instalments.

3.1.2 Gifting of their week(s), wholly or partly, to a family member or friend.

3.1.3 Sale of their week(s), wholly or partly, to a family member or friend.

3.1.4 Sale of their week(s) through advertising. (Suggest media.)

3.2 After consideration of 3.1 above, shareholders who satisfy the following pre-requisites may apply for seniors’ membership:

3.2.1 The shareholder(s) have had 15 years of continual membership at KBR.

AND

3.2.2 The shareholder (or at least one of the shareholders in the case of a joint share holding) must have reached the age of 70 years.

3.3 The shareholder(s) must relinquish their share and title (if any) to KBR and sign all necessary documents to effect such relinquishment.

3.4 On receipt of the completed documents the person(s) will be issued with a welcoming letter outlining the guidelines surrounding their seniors’ membership and a membership card. (See Appendix A)

4.0 BENEFITS OF SENIORS’ MEMBERSHIP

4.1 Continued membership of KBR.

4.2 No burden of an annual maintenance fee.

4.3 When a Senior Member wishes to use a KBR week, the member will pay the current annual maintenance fee. Payment of the fee must be received within seven days of making a booking.

4.4 Exchange company membership will continue to be recognised by KBR and, as a result, senior members will also have the opportunity of purchasing bonus weeks.

4.5 Day-use rights will continue. (A daily charge of $5.00 applies.)

4.6 Will receive newsletters and annual reports.

4.7 Discounted rental rates.

5.0 RESTRICTIONS

5.1 The booking of a week will be subject to availability.

5.2 Excludes fixed weeks 52, 1, 2 and 3.

5.3 Only one week, per share relinquished, can be accessed per calendar year once the maintenance fee has been paid (apart from the purchase of bonus   week(s) that can be made through an exchange company).

5.4 No voting rights at AGMs or other general meetings.

5.5 Neither nominate a member nor be nominated as a member of KBR Board.

5.6 Not transferable(other than from joint to single membership).