The Member Controlled Partnership Fund has been established to allow members to spend money on Capital Projects that they choose.
Pecan Grove Plantation Country Club Member Capital Fund Terms and Conditions
THE MEMBER CAPITAL FUND PROGRAM
The Member Capital Fund Program (the “Program”) will be established by allocating a portion of dues to a fund to be used for capital improvements (the “Fund”) on the remaining full golf and Junior golf membership openings. A trigger of 125 net additions to the full golf membership categories (the “Trigger”) must be reached to establish the Capital Fund. Once that Trigger is reached, a percentage of the dues on the 125 net additions (plus any additional net full golf members up to the full golf target) will begin to accumulate to the Fund as described below.
TERM OF THE PROGRAM
The Program officially starts on the first day of the month following the date the Club reaches the Trigger (the “Trigger Date”). Upon reaching the Trigger Date, the program runs for 5 years. All time periods and percentage allocations shall be computed based upon the Trigger Date. The Program may be extended as reevaluated from time to time thereafter by Club Management. In the event the Trigger is not met within a reasonable length of time, the Program will cease upon Club Management’s determination after receiving advice and counsel from the Club’s Board of Governors whether to continue to pursue reaching Trigger under the Program.
COMPUTING THE NUMBER OF NET GOLF MEMBERSHIP ADDITIONS
A “net addition” is calculated by factoring the number of new full golf members added less the number of members resigning. For example, if 10 new full golf members join the Club and 6 full golf members resign within the month, then the Club had net adds of 4. Full golf members mean dues paying golf memberships in the full golf categories. In computing the net additions, the category additions that will count for the Capital Fund will be Full Golf Non Transferable and Junior Executive Golf. The category subtractions that will count against the Capital Fund will be: Full Golf Transferable & Non Transferable, Full Golf Corporate, Junior Golf, Family Golf, LPGA Full Golf, Classic Golf, Legacy Full Golf and Legacy Junior Golf.
COMPUTING THE ALLOCATION TO THE FUND
The Fund does not start accruing money until reaching the Trigger. The computation is made on a monthly basis using the Club’s normal monthly statement date cycle. The percentage accruals to the Fund are as follows: Trigger Number: _531____ Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 50% 40% 30% 20% 10% As an example, if the Trigger is reached on July 15, 2005, the Trigger Date is August 1, 2005. If the Trigger number is 125, then the allocation for July 2005 will be $17,562 = 125 net membership additions X $281 Monthly Dues X 50% percentage allocation during Year 1. If, upon running the club’s monthly billing cycle for September 2005, on August 25, 2005 there are only 120 net membership additions, then the allocation for September 2005 will be $16,860 = 120 X $281 X 50%. If the number of net additions falls below 100, then no money will be allocated for that month.
SPENDING THE MONEY IN THE FUND
The Member Capital Fund will be administered by the Capital Fund Committee. This Committee will be formed and organized by the Board President and will operate as an extension of the Board of Governors. After the initial Committee is selected, the Committee can adopt its own rules for meetings, election of committee members, etc. The Club Manager and Golf Course Superintendent will be non-voting members of the Committee and invited to all Committee meetings. The money in the Fund will be spent on capital projects for the Club. Capital projects are defined according to generally acceptable accounting principles, and input from the Club’s financial department will be needed to confirm that the expenditures are capital expenditures. It is intended that projects and improvements to the Club made possible through the Member Capital Fund will be based on Member input and suggestions. The actual money allocated to the Member Capital Fund will be held in the Club’s bank account. The Fund will be reconciled on a monthly basis. The Treasurer of the Capital Fund Committee will review this reconciliation with the Club Staff as part of their responsibilities on the Capital Fund Committee. Money spent from the Fund is independent of the Club’s annual budget for capital repairs and replacements.
SUSPENSION OF FUND ACCRUALS
The Fund stops accruing money if the number of net additions drops more than 25 net members below the Trigger. In the event the Fund stops accruing money by falling more than 25 net member additions below the Trigger, the Fund does not start accruing money again until the original Trigger is reached. For instance, if upon running the club’s monthly billing cycle for November 2005, on October 25, 2005 there are only 99 net membership additions, then the allocation for November 2005 will be $0 = 99 (more than 25 below Trigger, so Fund allocations are suspended until Trigger is reached again in the future) X $281 X 50%. Accruals to the fund will not begin again until the original Trigger is reached at some time in the future. In the event the Trigger is reached at some point in time in the future, those months where no accruals took place during the suspension period will be retroactively reinstated. An example of the reinstatement is as follows: If in November 2005, through February 2006, the club maintained only 99 net additions, but in March 2006 reached the 125 net additions trigger again, the Fund would receive an allocation for November, December, January and February as follows: Total of $50,945 as the sum of 2 (months of November and December) X 99 (net additions maintained during each month) X $281 monthly dues X 50% = $27,819, plus 2 (months of January and February) X 99 X $292 (monthly dues after increase) X 40% (year 2 percentage) = $ 23,126.
WAITLIST TO JOIN DUES ALLOCATION TO THE FUND
In the event the Club reaches its full compliment of dues paying full golf members and establishes a waitlist to join the golf category of membership, 50% of the dues paid by those members in the waitlist to join that category shall be allocated to the Fund.