DESERT MOUNTAIN CLUB, INC. MEMBERSHIP PROGRAM OVERVIEW (As of February 6, 2019)

Transcription

1 DESERT MOUNTAIN CLUB, INC. MEMBERSHIP PROGRAM OVERVIEW (As of February 6, 2019) Page 1 of 13

2 Table of Contents Introduction... 3 Immediate Family... 3 Equity Golf Membership Summary... 4 Equity Golf Membership-Junior Summary... 5 Equity Golf Membership-Widow/Widower Summary... 6 Equity Club Lifestyle Membership Summary... 7 Equity Club Lifestyle Membership-Senior Golf Privileges Summary... 8 Membership Resale Program... 9 Transfer of Equity Membership to Subsequent Purchaser of Desert Mountain Property Member Arranged Transfer Program Legacy Transfer Program Equity Membership Options Upon Death of the Member Member Referral Program Contact Information Document Links Page 2 of 13

3 Introduction This document is a summary of the Membership Program. It is designed to give an overview of the different membership categories and statuses, and transfer options. Information in this document in no way supersedes the Membership Documents. The Membership Documents include the applicable Membership Application, Membership Agreement and/or Membership Conversion Agreement, the Bylaws, the Schedule of Dues and Charges, the Rules and Regulations, the Code of Conduct, and any other policies and procedures adopted by the Club pertaining to such member s membership. Immediate Family A Member s registered legal Spouse or Significant Other and unmarried children under the age of twenty-five (25), who are living at home, are full-time students, or are serving in the U.S. Armed Forces (collectively, Immediate Family ), shall have privileges equal to those afforded by the Club to the Equity Golf Member (excluding only voting rights and the right to share in liquidation proceeds), subject to the Bylaws and the Club Rules and Regulations. Page 3 of 13

4 Equity Golf Membership Summary The Membership criteria, rights and obligation of an Equity Golf Member are governed by the applicable Membership Documents and are summarized below. Qualifications: Application Approval Membership Contribution: Market-Based (see Membership Resale Program) Transfer Fee: $65,000 Monthly Dues through 2019: 1,700 Assessment: Equity Golf Access: All Club Facilities Guest Restrictions: See Membership Documents Annual F&B Minimum 2019: $2,500 Vote Count: 2 Eligible to Serve on Board of Directors: Yes Capacity Count: Equity Golf 2,375. Page 4 of 13

5 Equity Golf Membership-Junior Summary The Membership criteria, rights and obligation of an Equity Golf Member-Junior status are governed by the applicable Membership Documents and are summarized below. Qualifications: Applicant and Applicant s Spouse/Significant Other are both under age 50 Applicant cannot be an existing Equity Golf Member Purchase Equity Golf Membership through Membership Resale Program Applicant Approval Membership Contribution: Market-Based (see Membership Resale Program) Transfer Fee: $65,000* (transfers as an Equity Golf Membership) Monthly Dues through 2019: Under Age 30 $560 Age $1,140 Age $1,700 (Equity Golf) Assessment: Equity Golf Access: All Club Facilities Guest Restrictions: See Membership Documents Annual F&B Minimum 2019: $2,500 Vote Count: 2 Eligible to Serve on Board of Directors: Yes Capacity Count: Equity Golf 2,375 *Junior Status Membership Contribution Financing Option: The membership contribution may be financed through the Club. An applicant approved for financing is required to pay as a first installment under the financing plan $5,000 plus the difference, if any, between the membership contribution for the Equity Golf Membership (as established from the MRP) that is greater than the Equity Golf Transfer Fee and the $65,000 Equity Golf Transfer Fee. The remainder of the membership contribution will be financed, interest-free through a promissory note. Financing terms include annual payments of $5,000 with any remaining membership contribution balance due upon the earlier of (i) the member or the member s spouse or significant other reaching age 50, or (ii) a request for reissuance of the membership. Equity Golf Membership-Junior status cannot be transferred until the Club has received payment in full of the promissory note. Page 5 of 13

6 Equity Golf Membership-Widow/Widower Summary The Membership criteria, rights and obligation of an Equity Golf Member-Widow/Widower status are governed by the applicable Membership Documents and are summarized below. Qualifications: Applicant must be a Member or Spouse/Significant Other of a deceased Member or Spouse/Significant Other Application must be made within one year of the individual s death Membership Contribution: Not applicable Transfer Fee: $65,000 (transfers as an Equity Golf Membership) Monthly Dues through 2019: $850 (50% of Equity Golf) Widow/Widower status discontinues upon marriage, appointment of a Significant Other, or election to be removed from Widow/Widower status Once removed from Widow/Widower status may not reapply. Assessment: Equity Golf Access: All Club Facilities Golf Restrictions: Unlimited golf with payment of family guest rate per golf round. See Membership Documents Guest Restrictions: Immediate Family pays family guest rate per person per golf round Annual F&B Minimum 2019: $1,000 (up to 50%) Vote Count: 2 Eligible to Serve on Board of Directors: Yes Capacity Count: Equity Golf 2,375 Page 6 of 13

7 Equity Club Lifestyle Membership Summary The Membership criteria, rights and obligation of an Equity Lifestyle Member are governed by the applicable Membership Documents and are summarized below. Qualifications: Applicant Approval Membership Contribution: $20,000 when sold from Club inventory (Subject to Membership Resale Program) Transfer Fee: $10,000 Monthly Dues through 2019: $695 Assessment: Pro-rata of Equity Golf (assessment ratio based on dues ratio to Equity Golf Dues) Access: All Club Facilities, except no access to golf facilities Golf Restrictions: No access to golf facilities Guest Restrictions: Cannot sponsor golf guests See Membership Documents Annual F&B Minimum 2019: $2,500 Vote Count: 1 Eligible to Serve on Board of Directors: Yes Eligible for Upgrade to Equity Golf: Yes Capacity Count: Equity Lifestyle 290 Page 7 of 13

8 Equity Club Lifestyle Membership-Senior Golf Privileges Summary The Membership criteria, rights and obligation of an Equity Lifestyle-Senior Golf Privileges status Member are governed by the applicable Membership Documents and are summarized below. Qualifications: Member must be at least 75 years of age and an Equity Golf (Deferred Equity Golf) Member for at least 20 years Applicant Approval Issuance must be simultaneous with transfer of Equity Golf Membership by one of the methods indicated under Article 4 of the Bylaws Membership Contribution: Waived Transfer Fee: $10,000 (transfers as Equity Lifestyle Membership) Monthly Dues through 2019: $695 Assessment: Pro-rata of Equity Golf (assessment ratio based on dues ratio to Equity Golf Dues) Access: All Club Facilities Golf Restrictions: Each month, four (4) total rounds may be played at the family guest rate by the Member or the Member s Spouse/Significant Other Annually, an additional 48 rounds may be played at the guest rate. Additionally, the Member or Member s Spouse/Significant Other may participate in the following tournaments: Member/Member, Member/Guest, Couples, and Club Championships (Men s or Senior Men s/women s). Participation is subject to availability; Equity Golf Members have tournament participation priority Guest Restrictions: See Membership Documents Annual F&B Minimum 2019: $2,500 Vote Count: 1 Eligible to Serve on Board of Directors: Yes Eligible for Upgrade to Equity Golf: Yes Eligible for Upgrade to Equity Seven Golf: Yes Capacity Count: Equity Lifestyle 290 Capacity Restrictions: Maximum of 50 under Senior Golf Privileges status Spouse/Significant Other eligibility criteria in case of death of the Member: Upon death of the Member, if the Spouse/Significant Other continues on as the member under the Membership (as allowed under the Bylaws) and is not age 75 after 90 days from the date of the Member s death, the Spouse/Significant Other will be no longer be on Senior Golf Privilege status. Page 8 of 13

9 Membership Resale Program An Equity Member may offer to sell his/her membership through the monthly Membership Resale Program ( MRP ). ). The following outlines how the program functions: 1. To participate in the MRP a Resale Notice must be submitted through the members website (Click Here to access the Resale Notice). The Resale Notice supplements any and all of my prior agreements, arrangements, or understandings with the Club regarding the refund of my Membership Contribution. To the extent that any provisions of this Resale Notice conflict with any provisions of my prior agreements, arrangements or understandings with the Club regarding the refund of my Membership Contribution, this Resale Notice shall control. 2. Subject to any minimum price that may be established by the Club, in its sole discretion, the Participating Member is entitled to establish the price at which his/her membership may be reissued (the Ask Price ), subject to the procedures established by the Board for the MRP. Absent a minimum price established by the Club, the Ask Price established monthly by the Participating Member may be greater or less than the amount of the Transfer Fee (currently $65,000 for an Equity Golf Membership and $10,000 for an Equity Club Lifestyle-Membership), but in no event shall the Club receive less than the applicable Transfer Fee for the resale of an Equity Membership. 3. The Participating Member is required to pay and keep current all dues, fees and charges owed to the Club to be eligible to participate in the MRP. 4. For each calendar month in which the Club offers the MRP, a Participating Member is required to submit, at least two (2) business days in advance of each calendar month in which the Participating Member wishes to participate in the MRP, the Club s Resale Notice setting forth their requested Ask Price (in increments of $1,000), for which they are willing to sell their Equity Membership. An update will be sent on the 4th to last business day of the month. Submission of a Resale Notice may be accomplished through the members-only website under the "My Club" tab by scrolling to the Membership Resale Program and clicking on Resale Notice Form. 5. There shall be no carryover of Resale Notices or priority positions pursuant to the MRP as the resales are based solely on the current monthly Sale Prices. 6. When registration in the monthly MRP has been completed, a confirmation will be sent. If a confirmation has not been received, please call either Nicole Forbes, Director of Membership Sales, at or Debbie Delcore, Membership Manager, at If an approved applicant accepts an Ask Price for an Equity Membership in the Club, the Equity Membership shall be sold to the applicant for said Sale Price. Within two (2) business days following notification of an accepted Ask Price, the Participating Member and the Applicant must fulfill all requirements. Page 9 of 13

10 Membership Resale Program Continued 8. In the event there are matching Ask Prices, the priority in which those Equity Memberships will be offered to prospective candidates will be based on (i) the Participating Member s priority on the Prior Membership Reissuance List, if applicable, or (ii) the cumulative number of years the Participating Member has been an Equity Member of the Club. 9. If the Sale Price exceeds the (i) Transfer Fee and (ii) any amounts owed by the Participating Member to the Club, the balance shall be paid to the Participating Member. 10. If the Sale Price is less than the amount of the (i) Transfer Fee and (ii) any amounts owed by the Participating Member to the Club, the balance shall be due from the selling Participating Member to close the sale of the Equity Membership. 11. In the event that a Participating Member fails to take the steps required to transfer a Membership within the time periods set forth in Paragraph 9 above: (i) the Participating Member will be barred from participation in the MRP for a twelve (12) month period commencing on the first day of the calendar month after the last month in which the Participating Member had participated in the MRP; and (ii) the Club, in its sole discretion, may assess the Participating Member s Club account the full amount of any differential between the Ask Price set by the Participating Member and the price at which the applicant was able to acquire a Membership If the Participating Selling Member declines to sell their Equity Membership at the current Market - Based Price, the Club may take the place of the Member in the 1 to 1 ratio and sell a Treasury Membership for the current Market - Based Price. Once the sale is completed, the current Market - Based Price shall be the Sale Price of the Equity Membership under the MRP for the remainder of the calendar month. Page 10 of 13

11 Transfer of Equity Membership to Subsequent Purchaser of Desert Mountain Property Equity Members who own property in the Desert Mountain Community are eligible to transfer their membership through the Club to the subsequent purchaser of the member s residence or lot, subject to the Club s approval of such purchaser for membership and the payment, within thirty (30) days of the closing of the sale, of the then current applicable Transfer Fee to the Club, for the same category of membership as the current Equity Member. Member Arranged Transfer Program The Board is further authorized to establish on a temporary or permanent basis, as determined by the Board in its sole discretion, a member arranged transfer to reduce the number of Equity Members on the Membership Resale List (the Member Arranged Transfer ). Pursuant to a Member Arranged Transfer, a Member may arrange, through their personal efforts, a potential candidate to purchase from the Club their Equity Membership at a Sale Price determined by the Member, provided however, regardless of the Sale Price, the Transfer Fee must be paid in full to the Club. The candidate for membership in the Club is subject to the requirements for Membership set forth in Section and the terms of these Bylaws. The Equity Member is subject to the requirements in Section 4.1., as applicable. Policies and procedures shall be periodically established by the Board for a Member Arranged Transfer, including without limitation, the no advertisement restrictions in Section 4.11 and the restriction that brokers or third parties may not be used to obtain the candidate for membership. Legacy Transfer Program Equity Members are entitled, on a one time basis, to transfer their memberships during their lifetimes to a Spouse, Significant Other, an adult child, an adult grandchild or other family member authorized by the Board (in the Board s sole discretion) who is approved by the Club for membership without the payment of any additional Membership Contribution or a Transfer Fee. The transfer shall not be subject to any wait list. No refund shall be paid to the Equity Member or otherwise in connection with such a transfer. A membership transferred through Legacy Transfer cannot be transferred again through Legacy Transfer. For more information see Section 4.5 of the Club s Bylaws. Page 11 of 13

12 Equity Membership Options Upon Death of the Member The Club must be notified of the death of the Member (Designated Member) through receipt of a copy of the Death Certificate. Upon the death of the Designated Member, there are options available to the Spouse or the Estate of the Designated Member. 1. Spouse s Options (or the Significant Other in the event that the Equity Member s will specifically bequeaths the membership to the Significant Other and the bequest is not challenged) are as follow: a. Upon the death of the Designated Member, the surviving Spouse will be deemed to retain the membership and continue to be entitled to use of the Club facilities pursuant to their Equity Membership and be responsible for the dues, fees and charges due to the Club. b. The Equity Membership may, at any time within one year from the date of death of the Designated Member, be placed under the Death Provision, whereby the Spouse will no longer have club use privileges or voting rights and will no longer have any financial obligation for the membership. For forms and questions, please contact Membership Manager at or membership@desertmt.com. At any time within two years from the date the Equity Membership is placed under the Death Provision, the Equity Membership may be placed for participate in the MRP. If the membership is not sold in such two-year period, the Equity Membership will revert back to the Club. c. The Equity Membership may be sold/transferred, in accordance with the Bylaws, through one of the following four methods: (i) Legacy Transfer, (ii) Member Arranged Transfer, (iii) Membership Resale Program, or (iv) to the subsequent purchaser of a Desert Mountain property held in the same name as the membership. 2. The duly authorized representative of the member s estate (the Estate ) may elect the following: a. Within 90 days from the date of death of the Designated Member, the Membership may be reissued to an adult child or grandchild pursuant to Section 4.5 of the Club s Bylaws. b. The Equity Membership may, at any time within 90 days from the date of death of the Designated Member, be placed under the Death Provision, whereby the Estate will no longer have any voting rights or financial obligation for the membership. For forms and questions, please contact Membership Manager or membership@desertmt.com. At any time within two years from the date the Equity Membership is placed under the Death Provision, the Equity Membership may be placed for participation in the Membership Resale Program. If the Membership is not sold in such two-year period, the Equity Membership will revert back to the Club. Page 12 of 13

13 Member Referral Program The Desert Mountain Club Member Referral Program is our way of saying thank you for your support. The program rewards members who encourage their friends and family to join the Desert Mountain Club. If you have friends, family or business associates who wish to join, contact Director of Membership Sales, for details or simply complete a nomination form on the member website. Director of Membership Sales will contact you or your nominee to schedule a Club tour, provide information and assist them through the member application process. We look forward to welcoming your referral to the Club. Please Click Here to review the current member referral page providing the most current member referral program offer. Notification of Membership Purchase: After a referred party purchases an Equity Golf Membership, the Membership Manager will send an notifying the referring Member. The will include any requirements that will be needed before the referral credit can be posted to the referring Member s account. Tax Requirement: The Club s auditors require dues and other incentive credits of over $600 within a year to be reported on Tax Form Before dues credits can be applied to the referring Member s club account, the Club must have a completed Form W-9 on file. Contact Information For more information regarding Membership Sales and the Member Referral Program, contact Director of Membership Sales at or membership@desertmt.com. For more information regarding membership programs, contact Membership Manager at or membership@desertmt.com. Document Links Bylaws Click Here Rules and Regulations Click Here Schedule of Dues and Charges Click Here Page 13 of 13