FREQUENTLY ASKED QUESTIONS Last Updated MAY 1, 2014
The following questions and answers are designed to provide an understanding of The Club at Encanterra and the membership opportunity available at the Club. As these questions and answers are only summary in nature, you should read the Club Membership Plan and Club Rules and Regulations prior to purchasing a membership. Q: What is the Club at Encanterra? A: The Club at Encanterra is a private country club located in the Encanterra Community featuring exceptional golf, tennis, swimming, health and fitness and social facilities. The Club is currently offering a number of non-equity memberships in the categories of Golf, International, Invitational, Associate, Social, Community, Honorary, Introductory, Limited, Designate, and Sports memberships. Q: Who owns the Club Facilities? A: The Club at Encanterra is owned by The Club at Encanterra, LLC, an Arizona limited liability company. Q: What facilities does the Club offer? A: Members, their families and guests will enjoy the following exceptional Club Facilities: an 18 hole golf course; a clubhouse facility, including grounds, a fitness center, one or more swimming pools, meeting rooms, dining room and cafe, function rooms, spa facility, parking areas and golf shop; and tennis/activity center Q: How many memberships will be offered in the Club? A: There are no set limits on any of the golf membership categories, however it is anticipated that the golf course can reasonably accommodate between 500-600 Members. This total will be evaluated over time. Community memberships will by definition match the number of total residential units within the community. Q: What are the privileges of a Community Membership? A: A Community Membership includes sub-membership use rights for every Owner and member of the association. The Community Membership shall provide, at a minimum, nonexclusive license rights for every Owner and member of the Association equivalent to the
level of Social Members, together with such additional privileges as may be granted by Club Owner from time to time. Q: What are the privileges of a Social Membership? A: A Social Membership shall entitle the Member to use all non-golf related Club Facilities with the following special privileges, subject to availability: (a) the right to reserve tee times for a total of six rounds of golf per Member and immediately family of Member per month during the months of June, July and August, one day in advance, with payment of guest greens fees and cart fees; and (b) the opportunity to participate in Member-only social events. Additional golf privileges are detailed in the Expansion of social Member Golf Privileges addendum available from the membership office. Q: What are the privileges of a Golf Membership? A: A Golf Membership shall entitle the Member to use all of the Club Facilities, with the following special privileges: (a) use of the golf course without payment of greens fees - Member will be required to pay cart fees or trail fees, (b) the right to reserve tee times 10 days in advance of the day of play as determined from time to time by the Club (c) guest privileges for use of the golf course for guests accompanied or un-accompanied by a sponsoring Member upon payment of guest greens and cart fees; (d) the opportunity to participate in golf and social events, and (e) preferred selection of individual locker. Q: What are the privileges of an International Membership? A: An International Membership shall entitle the Member to use all of the Club Facilities from November 1 of each year continuing through April 30, with the following special privileges: (a) use of the golf course without payment of greens fees - Member will be required to pay cart fees or trail fees, (b) the right to reserve tee times 10 days in advance of the day of play (c) guest privileges for use of the golf course for guests accompanied or un-accompanied by a sponsoring Member upon payment of guest greens and cart fees; (d) the opportunity to participate in golf and social events, and (e) preferred selection of individual locker. International Memberships are limited to owners and residents of the Community who reside in the Community less than 183 days per calendar year. Q: What are the privileges of an Introductory Membership? A: An Introductory Membership shall entitle the Member to the same special privileges afforded to a Golf Membership for the time period for which the Introductory Membership is in place. Consult the Exhibit section of the Membership Plan for more detail on the specifics of this membership category.
Q: What are the privileges of an Invitational Membership? A: An Invitational Membership shall entitle the Member to use all of the Club Facilities, with the following special privileges: (a) use of the golf course without payment of greens fees - Member will be required to pay cart fees or trail fees, (b) the right to reserve tee times 10 days in advance of the day of play (c) guest privileges for use of the golf course for guests accompanied or un-accompanied by a sponsoring Member upon payment of guest greens and cart fees; (d) the opportunity to participate in golf and social events, and (e) preferred selection of individual locker. Invitational Memberships will be the final memberships subject to recall if a full recall of non-resident memberships is initiated. Q: What are the privileges of an Associate Membership? A: An Associate Membership shall entitle the Member to use all of the Club Facilities, with the following special privileges: (a) use of the golf course without payment of greens fees - Member will be required to pay cart fees or trail fees, (b) the right to reserve tee times 10 days in advance of the day of play (c) guest privileges for use of the golf course for guests accompanied or un-accompanied by a sponsoring Member upon payment of guest greens and cart fees; (d) the opportunity to participate in golf and social events, and (e) preferred selection of individual locker. Associate Memberships shall be subject to recall by the Club as a class prior to recall of resident Memberships. Q: What are the privileges of a Sports Membership? A: A Sports Membership shall entitle the Member to use of all non-golf related Club Facilities with the following special privileges, subject to availability: (a) the right of use to all nongolf amenities within the Club, (b) the right to participate in Members Only functions. The Sports Membership does not include any rights of access or privileges to the golf course. Q: What are the privileges of a Designate Membership? A: A Designate Membership shall entitle a primary Member and designated secondary Members to use all of the Club Facilities with the following special privileges (a) use of the golf course without payment of greens fees - Member will be required to pay cart fees or trail fees, (b) the right to reserve tee times 10 days in advance of the day of play (c) guest privileges for use of the golf course for guests accompanied or un-accompanied by a sponsoring Member upon payment of guest greens and cart fees; (d) the opportunity to participate in golf and social events, and (e) preferred selection of individual locker. Designate Memberships shall have no Immediate Family Members privileges, provided that Immediate Family Members shall qualify for Extended Family Member privileges. Q: Will my family members be welcome at the Club? A: Yes. The ability to spend quality time with members of the family is of paramount importance these days, and the Club is committed to providing a pleasant environment
where this can be accomplished. Each membership in the Club includes full privileges with the membership category for spouses and unmarried children age 22 and younger who either live at home, attend school on a full-time basis, or serve in the military (with the exception of Designate & Sports Memberships - see above). Additionally, accommodations for other extended family members are made as part of the various golf membership categories, as well as in the non-golf guest fee structure of the Club. Q: May I invite guests to the Club? A: Yes. Having your friends enjoy the Club's outstanding facilities with you is a wonderful attribute of membership in the Club. Members are entitled to have guests use the Club Facilities in accordance with the Member's category of membership and the rules and regulations adopted by the Club to preserve the exclusivity of its facilities. All guests must check-in with the concierge upon arrival. Q: Will there be any other types of membership available in the Club? A: In order to introduce the Club to prospective members, the Club may offer memberships on an annual, seasonal or other basis. The Club will also permit the general public, corporate groups and users of lodging facilities at the Club (if any) to use the Club Facilities on such terms and conditions as it may determine appropriate from time to time. Q: Will the membership initiation fee be repaid to the member? A: In the event the Club is able to re-issue your membership to a new Member (or if you have converted your Introductory, Limited, or Designate Membership to a Golf or International Membership), then with respect to such re-issuance, the Club shall collect a membership initiation fee from the new Member receiving the re-issued membership, and the Club shall transfer to you either (a) eighty percent (80%) of the membership initiation fee paid by the new Member receiving the re-issued membership, less applicable taxes and government transfer fees and charges, or (b) the amount of the initiation fee originally paid by you, less applicable taxes and government transfer fees and charges, whichever is less. If you have not converted your Introductory, Limited or Designate Membership at the time of your membership resignation you will not be entitled to any return of your Initiation Fee. Of course, the Club cannot guarantee when or if your membership will be re-issued or the amount, if any, that a Member may receive in the event of the re-issuance of its membership to a new Member. After re-issuance of your Golf or International Membership to a new Member, you will still retain your Community Sub-Membership if you are a resident or owner of a Lot in the Community until you sell your Lot to a new Lot owner.
Q: If I live in the Encanterra Community, can I arrange to have my Golf Membership transferred to the subsequent purchaser of my residence or homesite? A: Those members who own a residence or homesite in the Encanterra Community will be permitted to arrange through the Club for the transfer of their Golf or International membership to the subsequent purchaser of their residence or homesite (provided if the subsequent purchaser of an International Members residence or homesite does not meet the qualifications for International Membership, that Membership may be converted to a Golf Membership prior to transfer to the subsequent purchaser). The subsequent purchaser must be approved for membership and pay the then required membership initiation fee. The ability to arrange for the transfer of a member's membership to the purchaser of his or her property is an important attribute of membership because, even if there are no memberships available for issuance in the Club at the time, the subsequent purchaser can nonetheless obtain the seller's membership through the Club provided the purchaser is approved for membership. An Introductory, Limited or Designate Membership is not transferable to the subsequent purchaser of a residence or homesite, provided if those memberships are converted to a Golf Membership prior to transfer to the subsequent purchaser, the description above about Golf Memberships would apply. Q: Can members be assessed to cover any operating deficits or capital improvements? A: No. Members will not be subject to any liability for capital or operating assessments for the costs and expenses of ownership or operation of the Club or the Club Facilities. The Club Owner will pay all operating deficits incurred in the operation of the Club Facilities and will retain all operating revenues resulting from operation of the Club Facilities. Annual Dues, however, are not considered assessments. Q: How will the Club keep informed of the desires of the members? A: The Club is committed to providing the types of services, programs, activities and events that the membership is desirous of having. A number of advisory committees have been established to help ensure open lines of communication between the Club and the members. Q: How do I become a member? A: To become a Member of the Club, you must submit to the Club a fully completed and signed Application for Membership. Q: What if I have additional questions? A: Please contact the Membership Director at membership@encanterra.com.
QUESTIONS SPECIFIC TO OWNERS WITHIN THE ENCANTERRA COMMUNITY Q: What rights will I have to use the Club Facilities as a Lot Owner in the Community? A: The Club has issued a Community Membership for the Club to the Encanterra Community Association (the Association ). The Community Membership provides each member of the Association sub-membership rights to use the Club. The sub-membership rights attendant to the Community Membership are intended to be the equivalent of the rights provided to a Social Member in the Club. The current rights of a Social Member in the Club are set forth in the Club Membership Plan. If you acquire a Lot in the Encanterra Community, pursuant to the Declaration of Covenants, Conditions and Restrictions for Encanterra (the Declaration ), you will automatically become a member of the Association. Upon becoming a member of the Association, you will automatically acquire derivative submembership rights in the Club, assuming that the Community Membership of the Association is in force at such time. Q: What happens to my Sub-Membership rights in the Club when I sell my Lot in the Community? A: Upon sale or other disposition of your Lot, you would no longer be a member of the Association, and thus sub-membership rights in the Club that might exist at the time of transfer will automatically terminate. Whomever acquires your Lot and becomes a member of the Association will automatically acquire your sub-membership rights in the Club, assuming that the Community Membership of the Association is in force at such time. Q: If I want to acquire a Golf, International, Introductory, Limited, or Designate Membership in addition to my Sub-Membership rights in the Club, can I do so? A: Yes, you can. You may apply for a separate Golf, International, Introductory, Limited or Designate Membership in the Club in accordance with the terms of the Membership Plan, subject to availability. Upon becoming a Golf, International, Introductory, Limited or Designate Member, you will receive a credit against the Golf, International, Introductory, Limited or Designate Membership initiation fees for the sub-membership initiation fees you paid to the Association, and will receive a credit against Golf, International, Introductory or Designate Membership dues for the amount of sub-membership dues you pay to the Association. Q: If I sell my Lot in the Community, may I keep my Golf, International, Introductory, Limited or Designate Membership? A: You can keep your Golf, International, Limited or Designate Membership in accordance with the provisions for membership re-classification in the Membership Plan. The Introductory Membership terminates if you leave the Community.
Q: If I sell my Lot in the Community, may I transfer my Golf, International, Introductory, Limited or Designate Membership to the buyer of my Lot? A: Those members who own a residence or homesite in the Encanterra Community will be permitted to arrange through the Club for the transfer of their Golf or International membership to the subsequent purchaser of their residence or homesite (provided if the subsequent purchaser of an International Members residence or homesite does not meet the qualifications for International Membership, that Membership may be converted to a Golf Membership prior to transfer to the subsequent purchaser). The subsequent purchaser must be approved for membership and pay the then required membership initiation fee. The ability to arrange for the transfer of a member's membership to the purchaser of his or her property is an important attribute of membership because, even if there are no memberships available for issuance in the Club at the time, the subsequent purchaser can nonetheless obtain the seller's membership through the Club provided the purchaser is approved for membership. An Introductory, Limited or Designate Membership is not transferable to the subsequent purchaser of a residence or homesite, provided if those memberships are converted to a Golf Membership prior to transfer to the subsequent purchaser, the description above about Golf Memberships would apply. Q: How will my sub-member Club dues be determined? A: Your sub-member Club dues will be determined in accordance with the provisions of the Declaration for Covenants, Conditions, Restrictions and Easements for the Club at Encanterra. Essentially, they provide for you to pay a pro-rata share of the actual costs of operating the Club Facilities, not including the costs of operating certain golf-only related facilities. Q: What happens to my sub-membership if the Club is sold to a third-party? A: If the Club is sold to a third party, the third party may elect to continue to honor the Association s Community Membership and your sub-membership rights. It may also elect to terminate the Association s Community Membership and your sub-membership rights, in which event the third party would return to the Association the sub-membership initiation fees received from the Association, the Association would return to each Lot owner the submembership fees paid to the Association, and no further Club dues would thereafter be due from you as a sub-member. Q: If I hold a Golf, International or Introductory Membership in addition to my submembership, will the Golf, International or Introductory Membership initiation fee be repaid to me? A: If you are a Lot owner at the time of re-issuance of your Golf or International Membership (or if you have converted your Introductory, Limited, or Designate Membership to a Golf or
International Membership), in the event the Club is able to re-issue your Golf or International Membership to a new Member, then with respect to such issuance, the Club shall collect a membership initiation fee from the new Member receiving the re-issued membership, and the Club shall transfer to you either (a) eighty percent (80%) of the membership initiation fee paid by the Member receiving the re-issued membership, less applicable taxes and government transfer fees and charges, and less your sub-membership initiation fee, or (b) the amount of the Golf or International Membership initiation fee originally paid by you (not including credit for your sub-membership initiation fee), less applicable taxes and government transfer fees and charges, whichever (a) or (b) is less. Of course, the Club cannot guarantee the amount, if any, that a Golf or International Member may receive in the event of the re-issuance of its membership to a new Member. If you have not converted your Introductory, Limited or Designate Membership at the time of your membership resignation you will not be entitled to any return of your Initiation Fee. Of course, the Club cannot guarantee when or if your membership will be re-issued or the amount, if any, that a Member may receive in the event of the re-issuance of its membership to a new Member. After re-issuance of your Golf or International Membership to a new Member (or resignation of an Introductory Membership), you will still retain your Community Sub-Membership until you sell your Lot to a new Lot owner. Q: Will the membership initiation fee be repaid to the sub-member? A: Upon sale of your Lot to a new Lot owner, the Association will collect a sub-membership initiation fee from your buyer. The Association will return to you eighty percent (80%) of the sub-membership initiation fee paid by you at the time you bought your Lot, less applicable taxes and government transfer fees and charges. This is a general description of the membership opportunities available at the Club and should not be relied on for the purpose of deciding to acquire a residence or homesite in the Community or a membership in the Club. The complete Membership Plan is available on www.myencanterralife.com or upon request at the Membership Office.