Abercrombie & Kent Residence Club

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ABERCROMBIE & KENT RESIDENCE CLUB	NON-EQUITY CLUB
Members own the Club; the Club owns the property portfolio	Members do not own the club, nor any of its properties
Properties are wholly owned by the Club with no debt	Properties are financed with significant debt
Annual fees are solely used to manage and improve the properties and provide exceptional services and travel opportunities for members	Significant portion of annual fees used to service debt, which results in higher costs and lower levels of service
Appreciation in property value is captured by the member-owned Club, so there is no motivation for the manager to sell the Club's most valuable or favorite homes	Appreciation in property value is captured by the club's sponsor/developer owner and there is therefore an incentive for it to sell the club's most valuable (and often, favorite) homes for a profit
Upon resignation, 80% of the then-current Membership Capital Contribution amount is returned to the member, less a transfer fee (if a member resigns within the first five years, they can receive up to 100% of their original membership capital contribution amount)	Resigning members only receive 50% to 80% of their original buy-in price