Dear Prospective Purchaser: We understand that you are ... - Atlantis

Dear Prospective Purchaser:
We understand that you are considering purchasing a condominium-hotel unit in The Reef Atlantis
(also known as The Residences at Atlantis), a unique condominium-hotel development on Paradise
Island, The Bahamas, and that you have requested information concerning the availability of rental
programs for units that will not be occupied year round by their owners. We, Island Hotel Company
Limited, the company that will administer the Atlantis Rental Program (as defined below), are providing
the following information which explains our rental program generally and includes a section
containing a prospective purchaser’s most frequently asked questions. If you have any further questions,
please feel free to contact our Owner Services Team at ReefOwnerServices@kerzner.com or
call us at 242-363-6991. We look forward to welcoming you to the property upon completion of the
building and serving as your rental program operator of choice.
It is a requirement of Bahamian law that units in a condominium-hotel must remain within the hotel’s
general rental inventory for a minimum period of 9 months per year, or be subject to significant customs
duties and stamp duties thereon.
Regardless of whether you participate in the Atlantis Rental Program (as defined below), all units at
The Reef Atlantis will be governed by a Unit Management Agreement, under which we, as the primary
operator of Atlantis, Paradise Island, will perform certain services for the unit, including standard
check-in and check-out procedures, issuing room keys and collecting various charges related to
residency in the unit (including the Resort Access Fee defined below). The “Resort Access Fee” will
be charged to “Unit Owners” for housekeeping and similar resort services provided by us as well as
for access to the facilities of Atlantis, Paradise Island, on the same basis as a resort guest, including
complementary use of the pools and water park, and use of the sports facilities, spa and golf course,
at the same rates as other resort guests. The Resort Access Fee will be US$150 for a JR Suite,
US$250 for a 1 Bedroom Unit, US$400 for a 2 Bedroom Unit, and US$600 for a Penthouse Unit per
night that the unit is occupied by the Unit Owner or the Unit Owner’s guests, except that in the case of
units participating in the Atlantis Rental Program, the Resort Access Fee will be reduced by 50%.
At this time, we would like to extend to you an invitation to participate in the voluntary rental program
that we manage as the operator of Atlantis, Paradise Island (the “Atlantis Rental Program”). Although
participation in the Atlantis Rental Program will be governed by the specific terms of a Rental Program
Agreement to be entered into with us and each Unit Owner, the following is intended to provide
highlights of the Atlantis Rental Program and then address some frequently asked questions.
Rental Program Highlights:
• We will administer the rental of your unit using the personnel and facilities of Atlantis, Paradise
Island as well as personnel dedicated to The Reef Atlantis.
• Subject to the requirement that your unit remain in the Atlantis Rental Program, you may use
your unit whenever and for however long you like, subject to availability and payment of the appli-

cable fees. We will generally guarantee the availability of your unit for up to 3 months each year if we
receive notice of your intended occupancy at least 11 months in advance. It is recommended that
you consider holiday and other peak usage periods and provide notice of these intended occupancy
dates further in advance.
• If we receive notice of your intended occupancy less than 11 months in advance, we will make
every effort to honor your requests for your use of your unit subject to any confirmed reservations
existing at the date of your request.
• The Resort Access Fee payable under the Atlantis Rental Program will be 50% less than the
Resort Access Fee payable pursuant to the Unit Management Agreement. When you occupy your
unit you will be charged a reduced Resort Access Fee of between US $75.00 and $300.00 per night,
depending upon the size of your unit. In addition to the housekeeping and similar resort services included,
the Resort Access Fee covers access to the facilities of Atlantis, Paradise Island, on the same
basis as a resort guest, including complementary use of the pools and water park, and use of the
sports facilities, spa and golf course, at the same rates as resort guests.
• We will set the daily room rate when your unit is part of Atlantis Rental Program, and such rate
will include the services and access covered by the Resort Access Fee.
• You may be permitted to participate in the Atlantis Rental Program prior to closing on the purchase
of your unit.
• Gross revenue from rental of your unit will be distributed as follows:
a. We will deduct an amount equal to applicable taxes, levies, and gratuities and pay such
amounts to the relevant recipients, leaving the “Rental Income”.
b. We will then deduct 10% of the Rental Income as a management fee from which we will pay
any travel agent commissions and credit card fees which we are required to pay.
c. We will retain 50% of the balance as compensation for securing and servicing the rental program
and the other 50% will be paid to the Unit Owner less 5% of the Rental Income for the reserve
account for the maintenance, repair and replacement of the contents of the unit (“Reserve Fund”).
d. In the event there are any outstanding unpaid amounts due from the Unit Owner, such as
unpaid Resort Access Fees or any unpaid incidental expenses related to the Unit Owner’s use of the
unit, such amounts will be deducted prior to any payment to the Unit Owner.
• Whenever the unit is rented, the occupant is responsible for establishing credit for resort charging
privileges as well as any applicable gratuities.
• Monthly statements showing a detailed breakdown of all unit activity and your resort account
activity will be issued with a check or bill, as appropriate.
• To facilitate distribution of bookings for units in the Atlantis Rental Program, we will use a rotational
booking program and will take into account guest requests for specific room types and views as
well as the number of days and time of year the unit is available for rental.
• The Unit Owner will be responsible for the cost of upkeep of the contents of the unit and we will
coordinate that upkeep. However, to the extent possible, such costs will be funded from the Reserve
Fund mentioned above.
• All Unit Owners and guests will provide us with a major credit card upon their arrival to cover
any other incidental expenses such as room service, housekeeping gratuities and fees for other amenities
available at Atlantis, Paradise Island.

• Food and beverage, room service, in-room massage as well as other amenities will be available
at an extra charge.
Frequently Asked Questions:
How is revenue from the rental of my unit split between myself and the Hotel Operator?
After deduction of the applicable taxes, levies and gratuities, we will deduct the management fee of
10% of the Rental Income. We will retain 50% of the balance as compensation for securing and servicing
the rental program and we will pay you, as a Unit Owner, the other 50%, less 5% of the Rental
Income for the Reserve Fund and less any other outstanding unpaid amounts, if any.
How does the rotation system work? How do I know that my unit will get rented a fair amount of time?
To facilitate distribution of bookings for units in the Atlantis Rental Program, we will use a rotational
booking program. The criteria for rotation will take into account guest requests for specific room types
and views as well as the number of days and the time of year the unit is available for rental.
How often will I receive a statement of account?
You will receive a monthly statement with a detailed balance of your unit’s activity. This will be accompanied
by a payment or a request for payment, as the case may be. This would include all revenues
and all fees associated with your account.
How long is my rental agreement?
The initial term of the rental agreement will be 3 years and will be automatically renewed after that unless
you give a 1 year notice of cancellation. You must leave your unit in the Atlantis Rental Program
in order to continue to qualify for the customs duties and stamp duties exemptions under Bahamian
law for condominium-hotel units, although you will always have the right to occupy your unit on the
basis described above.
How can I participate in the Atlantis Rental Program prior to closing on the purchase of my unit?
You can elect to participate in the Atlantis Rental Program prior to closing on the purchase of your
unit from the developer of The Reef Atlantis simply by signing the Rental Program Agreement and
returning it to us. Your unit will automatically be entered into the Atlantis Rental Program and you will
receive your share of the Rental Income following your closing provided that you close on your unit
in accordance with your purchase agreement within 45 days of the date The Reef Atlantis opens for
business, and you comply with the other terms and conditions of the Rental Program Agreement.
Will there be a reserve fund for maintenance, repair or replacement of the contents of the unit such as
furnishings and décor?
Yes, 5% of the Rental Income from your unit will be set aside in a Reserve Fund. We will determine
the appropriate times for the maintenance, repair and replacement of the unit contents in our discretion.
May I offer my unit to friends and family while in the program?
Yes, similar to your usage of the unit, namely, subject to availability and to the Bahamian law requirement
that the unit be in the hotel’s general rental inventory for a minimum of 9 months each year.
What if a hotel guest damages the furniture in my unit?
If there is an unusual or extra ordinary event, we will endeavor to collect charges for damages to a
unit by the guest. Normal wear and tear is expected and is your responsibility. Replacements will be
made from your reserve account at our discretion to provide the highest standard of quality for the
unit. Shortfalls, if any, will be the responsibility of the Unit Owner.

May I leave my car at the hotel year-round if I am not occupying my unit?
No, in order to ensure that hotel amenities are available to all hotel guests, you must occupy your unit
in order to take advantage of the parking facilities.
Will I or my guests be charged for parking when I am occupying my unit?
Yes, you and your guests will be charged in accordance with the charges of the valet operator and the
posted daily valet parking rates.
May I request my unit to be rented on a non-smoking and pet free basis?
Yes you may, and we will try to reasonably accommodate your request, but we cannot guarantee that
all hotel guests will abide by the established rules of the unit. Please note, we do not presently allow
pets of any kind except service animals.
When I am not occupying my unit, may I have use of resort amenities and the water park?
No, in order to ensure the hotel amenities are available to all hotel guests, you must occupy your unit
in order to take advantage of the hotel’s facilities. Restaurants and bars however are available to you
on the same basis as they are to local guests.
How do I arrange to use my unit?
Simply complete and return the Unit Owner Occupancy Periods form attached to your Rental Program
Agreement and return it to us at least 11 months prior to your intended occupancy dates. It is
recommended that you consider holiday and other peak usage periods and provide notice of these
intended occupancy dates further in advance.
What if I give short notice and my unit is available, may I use it?
Yes, we will always attempt to accommodate your request and if your unit is available, of course you
may use it. However, if you have already used your unit for more than 3 months, then you may use
your unit only as a regular guest.
Will there be a formal rental program agreement?
Yes, the Rental Program Agreement will be available to The Reef Atlantis unit purchasers to be executed
prior to the closing on the unit.
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