FAMILY CENTER/CONDO AGREEMENT BETWEEN DIAMONDHEAD HOTEL CONDO, LTD AND DIAMONDHEAD PROPERTY OWNERS ASSOCIATION
I.
INTENT
Diamondhead Condo Hotel, Ltd. intends to build a family recreation center including no less than 100 condo/hotel units. The following items are a summary of the agreement details with the Diamondhead Property Owners Association:
For valuable consideration being exchanged between the parties and based thereon, the following is a legally binding contract under Arkansas law consisting of the following items which embody said agreement.
II.
TERMS AND CONDITIONS
· Diamondhead Condo Hotel, Ltd. will provide Diamondhead residents an off-season discount at the family center (exact discount to be determined at a later date).
· Past POA dues will be collected at closing of each Condo/Hotel on all delinquent lots accepted as trade in lots by Diamondhead Condo Hotel, Ltd.
· Diamondhead Condo Hotel, Ltd. will not accept any unsolicited lots.
· Diamondhead Condo Hotel, Ltd. /family fun center will provide its own security.
· Diamondhead Condo Hotel, Ltd. will be granted “Developer Status” on up to 100 lots, with no dues accruing on these lots for a period of up to three (3) years. After three years Diamondhead Condo Hotel, Ltd. will pay annual maintenance fees on 10% of the lots held in their inventory on lots where no houses have been built and sold. A six month grace period will be granted on completed homes that have not been sold. If only a portion of the 10% is sold, annual maintenance fees will be paid on the remaining percentage. Annual maintenance fees will continue on remaining outstanding lots each following year.
· Diamondhead Condo Hotel, Ltd will contribute $1500/unit (approximately $150,000 total) towards beautifying the Diamondhead front entrance and signature hole on golf course. A representative of Diamondhead Condo Hotel, Ltd. will be allowed to sit on any/all committee(s) involved in the planning process for the above. No construction, renovation or remodeling on the above project shall commence until above ($150K) contribution is completed. Any action on the above items will require a DHPOA Board of Directors majority vote.
· Diamondhead Condo Hotel, Ltd. will pay DHPOA $360/unit annually for not less than 100 units (approximately $36,000/year). Increase(s) will be the same percentage as Diamondhead lot owners. This will be paid with one check upon receipt of billing from DHPOA.
· Diamondhead Condo Hotel, Ltd. anticipates selling approximately 400 corporate memberships (limited to three (3) players per membership at any given time), which includes golf membership fees of $20 per player plus tax, including cart (same rate as property owners), and will contribute $240/membership to the DHPOA. This will generate approximately $96,000 annually for the DHPOA.
· Diamondhead Condo Hotel, Ltd. will contribute $25,000 annually to the DHPOA in addition to the $36,000 DHPOA dues.
· Monthly maintenance fee payments to DHPOA will begin upon closing of each hotel/condo unit sold.
· Golf fees for condo owners and renters are to be $20.00 plus tax per player including cart (same rate as property owners).
· Country Club exercise room will not be available to condo owners/renters due to limited size. Diamondhead Condo Hotel, Ltd. will provide its own exercise room.
· There will be a $5.00 per person for daily swimming pool use.
· Diamondhead Condo Hotel, Ltd. property owners will not have voting privileges in community matters.
· The DHPOA will notify by letter, all property owners of the opportunity to purchase a condo/hotel unit in this project.
III.
In the event any term or provision of this Agreement shall be declared invalid or against public policy by a court of competent jurisdiction, then the remainder of this Agreement shall not be effected by such invalidity and shall remain in full force and effect.
This Agreement may be executed in any number of counterparts, each of which will for all purposes be deemed to be an original, and all of which are identical.
The foregoing constitutes the entire Agreement between the parties and may be modified in writing and signed by both parties.
IV.
The parties have read and understand the terms and conditions of this agreement, having consulted with counsel and have executed the same as their free and voluntary act.
V.
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.
_______________________________ _____________________________
President, President,
Diamondhead Condo Hotel, Ltd Diamondhead Property Owners Assoc.
STATE OF ARKANSAS )
) SS VERIFICATION
COUNTY OF GARLAND)
I, ____________________, President of Diamondhead Hotel Condo, Ltd., do hereby certify that the responses contained herein are true and correct to the best of my knowledge.
________________________________
SUBSCRIBED AND SWORN TO before me on this ___ day of June, 2010.
________________________________
Notary Public
My Commission Expires:
____________________
STATE OF ARKANSAS )
) SS VERIFICATION
COUNTY OF GARLAND)
________________________________
SUBSCRIBED AND SWORN TO before me on this ___ day of June, 2010.
_______________________________
Notary Public
My Commission Expires:
___________________
