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EXHIBIT 10.2
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Saddlebrook
The Golf and Tennis Resort
X.X. Xxx 0000
Xxxxxx Xxxxxx, Xxxxxxx 00000 - (000) 000-0000
DEDICATION OF CONDOMINIUM APARTMENT TO
RENTAL POOL AND AGENCY APPOINTMENT AGREEMENT
THIS AGREEMENT, made this day of , 198 , by and between
XXXXXXXXXXX XXXXXXX, XXX., Xxxxxx Xxxxxx, Xxxxxxx, hereinafter call "Agent," and
whose address is
hereinafter called "Owner":
WHEREAS, the undersigned is the owner of a condominium apartment which is a
part of SADDLEBROOK RESORTS, the identification of which is hereinafter set
forth; and
WHEREAS, in connection with the sales of the condominium apartments in
SADDLEBROOK RESORTS, a majority of the apartment purchasers have indicated a
desire to dedicate their apartments to a rental pool during such periods as the
Owners thereof shall not occupy the same whereby income from such operation may
be shared equitably after payments to the Agent of a percentage of the income
to cover the expenses of the operation and services of Agent; and
WHEREAS, day-to-day management is required, and the Agent is prepared to
assume such responsibilities according to the terms and conditions hereinafter
set forth.
NOW, THEREFORE, in consideration of the covenants and agreements hereinafter
set forth, and the mutual benefits to the respective parties, and the joining
by the one or more Owners of condominium apartment units in SADDLEBROOK
RESORTS, it is hereby agreed as follows:
(1) DEDICATION OF APARTMENT TO RENTAL POOL. The Owner dedicates to the
rental pool his condominium apartment No. , Bldg. , which apartment is a
type apartment unit, in accordance with the terms hereof.
(2) EXCLUSIVE AGENCY EMPLOYMENT: Owner hereby employs Agent to manage the
rental of his unit number for a period commencing on , 198 , and
ending on the 31st day of December, 198 , with the understanding that the
Agency will be automatically renewed on an annual basis unless either party has
given written notification of termination prior to October 15th of any given
year. If such notice is given, this agreement will terminate on December 31st
of the year in which such notice is received.
(3) RESERVATION OF OWNER'S OCCUPANCY. Owner agrees and hereby dedicates his
apartment to the rental pool for rental occupancy for the total period of this
Agreement except for the period of time hereinafter set forth which the Owner
specifically reserves for his personal use, subject to the limitations set
forth in paragraph (4) of this Agreement.
(a) Owner reserves his apartment for
(see attached exhibit)
(b) Except when reserved by Owner for his personal use, Owner's apartment
shall be subject to rental to such tenants as may be provided by Agent for
terms of one or more days by oral or written lease or rental arrangement.
(c) Subject to the limitations set forth in paragraph 4 of this Agreement,
Owner may at any time, by written notice to Agent during the term of this
Agreement, withhold his unit from such renting, for his personal use, for not
more than the said limitations on Owner occupancy for the succeeding calendar
year. Owner must notify Agent as to the dates to be set aside for his personal
use prior to October 15th of each year. Owner understands that his failure to
provide timely notification to Agent could result in the inavailability of his
unit on desired dates. If Owner provides no notification to Agent it will be
assumed that the Owner desires to reserve the same days for his personal use as
were reserved in the previous year. Agent agrees to provide Owner with a
reminder notice regarding renewal options and reservation days by mail on or
before September 1st of each calendar year.
(d) Notwithstanding any other provision set forth in this Agreement, in
the event an Owner desires his own apartment other than at periods reserved by
the Owner pursuant to Paragraphs 2 (a) and (c) hereof, and if said apartment is
not occupied, or in the sole opinion of the Agent likely to be occupied, for
all or any part of the period for which Owner desires such occupancy, the Owner
may take the apartment out of the pool for such period and utilize the said
apartment himself. In such event, the Owner shall give Agent a minimum of
twenty-four (24) hours' written notice of such temporary removal of the
apartment from the pool. In the event the apartment is occupied, or in the sole
opinion, of the Agent is likely to be occupied, for all or any part of the
period the Owner desires such additional occupancy, then the Owner shall have
no right to remove said unit from the rental pool.
(e) In the event that the Owner desires to occupy his own apartment, other
than at a time reserved for Owner occupancy, during any period when it is
dedicated to the rental pool and does not wish to remove said apartment from
the rental pool, he may do so as a rental tenant and, as such, shall have
preference to occupy his condominium apartment unit if the same has not been
previously reserved by a tenant. Owner shall pay the prevailing rental charges
as established by the Agent for said apartment.
(4) LIMITATIONS ON OWNER OCCUPANCY. The parties acknowledge that in order
to have a successful rental pool operation, there must be a limitation on Owner
occupancy of the units so dedicated to the rental pool. It is mutually agreed
that participating Owners in this rental pool are guaranteed the use of their
units for forty-five (45) days per calendar, with not more than twenty-one (21)
of such days to fall in the period beginning December 15th and ending April
15th. Nothing herein contained shall be construed as prohibiting a
participating Owner from occupying his dedicated unit in excess of the above
limitations if his unit is available in the sole judgement of the Agent. The
above provision concerning occupancy is a contractual agreement between Agent
and Owner. The Tax Reform Act of 1976 contains special provisions concerning
the deductibility of expenses for vacation homes related to the Owner's personal
occupancy. You should consult your tax advisor regarding this matter.
(5) TERMINATION OF AGREEMENT. The parties to this Agreement, both the Owner
and the Agent, may terminate this Agreement by giving not less than six (6)
months' notice to the other party of his intentions to so terminate the
Agreement.
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EXHIBIT 10.2 Page 2 of 4
(6) OWNER'S RESPONSIBILITY. Owner recognizes and agrees that his right to
participate in the rental pool depends upon his maintaining the interior of his
condominium apartment in a first-class occupancy condition, and Owner agrees,
so long as he is a party to this Agreement, that he will so maintain the
interior of his apartment. Agent, in its sole discretion shall have the right
to take such steps as necessary to bring the interior of the apartment to such
condition, including but not limited to redecoration of walls and ceilings and
replacement or repairs of draperies, carpeting, furniture and equipment. Costs
for such expenditures shall be charged against the Escrow Account more fully
described hereafter in paragraph 19, and if said account is insufficient, the
balance of such costs may be deducted from any amounts owning to Owner from his
share of the rental pool, provided, however, that in the event the proposed
expenditure would both exceed the amount in the Escrow Account and is over One
Hundred ($100.00) Dollars, Agent agrees to get Owner's permission prior to
making such expenditures, provided further that should Owner refuse to
authorize such expenditures, Agent may forthwith terminate this Agreement. In
the event Agent shall exercise its right to bring a rental unit into
first-class occupancy condition as provided in this paragraph 6, subject to the
Owner's right of approval, if applicable, and such expenditures exceed both the
amounts in the Escrow Account and owing to Owner from his share in the rental
pool, Owner agrees to promptly fully recompense Agent for the balance of said
expenditures. In the event Owner fails to so recompense Agent, Agent may
forthwith terminate this Agreement as to such apartment unit, and upon due
notification to SADDLEBROOK RESORT CONDOMINIUM ASSOCIATION, INC., the said
Association will recompense Agent and exercise such remedies against Owner
and/or his apartment unit as are set forth in the Articles of Incorporation and
By-Laws of such Association pertaining to assessments. Owner further agrees
that the Agent shall have the right to reasonable inspection of the interior
of the Owner's apartment in order to satisfy itself that the unit is being so
maintained, and Agent shall at all times have a passkey to Owner's apartment.
No apartment Owner shall alter any lock or install any new lock on any doors
leading into his apaprtment without the consent of the Agent, and if such
consent be given, the Agent shall be provided with a key.
(7) DEFINITION AND ALLOCATION OF NET RENTAL INCOME. The parties agree that
net rental income for purposes of this Agreement is defined as follows:
Apartment and room rentals received, less marketing surcharge of a maximum of
7 1/2% of rentals received in each calendar year, a twelve and one-half percent
(12 1/2%) management fee to Agent, travel agents' commissions, reserve for bad
debt and credit card expenses. The proceeds of the marketing surcharge will be
made available for promoting and advertising the Saddlebrook resort operations.
The remaining amount of net rental income, as defined, shall be distributed as
follows:
(a) Rental Pool Income; 45% to the rental pool, to be allocated among
the Owners in accordance with the formula for calculating shares of interest as
hereinafter set forth.
(b) Occupancy Fee; 10% of Net Rental Income to the Owner of a rented
apartment unit; prior to determination of the 10% occupancy fee a deduction
will be made for all minor repair and replacement charges of $25 or less.
Items in this category shall include but not be limited to common repair and
replacement charges applicable to all units such as replacing light bulbs, air
conditioner filter, and smoke detector batteries. A participant's occupancy
fee is subject to the provisions of paragraphs 6 and 19.
(c) 45% to Agent for its services as manager of the rental pool and the
hotel operation.
(8) CALCULATION OF SHARES IN RENTAL POOL. The Owner's share in the monies
allocated to the rental pool shall be determined as follows:
(a) Unit Factor:
A point allocation, attributable to the purchase price (furnished)
of each dedicated apartment unit, will be calculated quarterly so as to
determine the Owner's unit factor. The computation of this factor will be
based upon the purchase price (furnished) of each apartment unit as of January
1 of each year for each type of apartment. the unit factor will be the sum
total of the purchase price (furnished), as herein defined of all apartment
units dedicated during the quarter, divided into the purchase price (furnished)
as herein defined of the particular dedicated apartment unit. The resulting
fraction shall be expressed as a decimal.
(b) Availability Factor:
The summation of the number of days that all apartments are
dedicated to the rental pool in the quarter shall be the denominator. The
number of days that the particular dedicated apartment is in the rental pool in
the quarter shall be the numerator. The resulting fraction, expressed as a
decimal, shall be the availability factor for an apartment unit for that
calendar quarter.
(c) Participation Factor:
The unit factor shall be multiplied by the availability factor, and
the resulting figure shall be the Owner's rental pool participation factor for
such quarter.
(d) Rental Pool Income:
The total of the participation factors for each apartment unit in
the rental pool for the calendar quarter shall be divided into the total rental
pool income (45% of net rental income), as herein defined, available to the
rental pool participants, and the resulting figure times each Owner's
participation factor shall equal his income from the rental pool for the
calendar quarter.
(9) COMPLIMENTARY ROOMS. Owner acknowledges that in connection with rental
promotion activities, Agent will find it necessary and desirable to furnish
complimentary rooms from time to time. Owner agrees that Agent may so furnish
complimentary rooms when Agent, in its sole discretion, deems it necessary or
desirable to do so and that in such event, Agent shall pay an amount
representative of ten percent (10%) of the normal unit rental for each
apartment unit or units which are used as complimentary rooms, and said ten
percent (10%) amount shall be paid pursuant to the terms of this Agreement to
the Owner of the respective apartment unit or units whose apartments have been
so utilized for complimentary occupancy.
(10) AGENT OBLIGATION FOR RENTAL EXPENSES. Owner shall have no expenses for
rental operation as a deduction from net rentals except as provided in
paragraph 7, so long as SADDLEBROOK RESORTS, INC. is the Agent under the
Agreement, except the utilities and property taxes for his apartment, his
obligations for the common element expenses under the Declaration of
Condominium and the maintenance of his regular membership in SADDLEBROOK GOLF
AND TENNIS CLUB in good standing.
(11) PAYMENT OF RENTAL SHARES. Payment of rental pool shares shall be made
on a quarterly basis within forty-five (45) days of the close of each calendar
quarter. The Agent shall distribute to the participating Owners their
respective rental and occupancy fees as heretofore provided, based on their
respective participating factors for that calendar quarter accompanying such
distribution with adequate accounting data in support thereof, such payments to
be subject to all provisions of this Agreement.
(12) OWNER'S OBLIGATIONS. In addition to and not in limitation of the
obligations at law of Owner as a lessor, Owner covenants as follows:
(a) Punctually and fully to perform Owner's obligation as a
condominium owner in SADDLEBROOK RESORTS, including payment of the periodic
charges and assessments attributable to condominium ownership.
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EXHIBIT 10.2 Page 3 of 4
(b) To keep Owner's apartment furnished to the extent and in the manner
reasonably required by Agent as necessary for rental purposes hereunder. In
order to maintain the quality of the Owner's apartment comparable with other
rental units in SADDLEBROOK RESORTS, Agent is authorized to establish required
minimum quantity and style of furnishings and equipment for purposes of
efficient rental pool operations.
(c) Subject to Owner's rights of privacy during periods of Owner occupany
of Owner's apartment, to permit Agent and tenants access to Owner's apartment
consistent with rental occupancy hereunder.
(d) Not to leave upon the premises valuable personal effects or matters of
a nature unsuitable for rental occupancy.
(e) To maintain during the term of the Agreement a regular membership in
SADDLEBROOK GOLF AND TENNIS CLUB for each non-connecting unit in the rental
pool and to authorize SADDLEBROOK to issue a guest card to tenants of Owner's
apartment authorizing the tenant during his tenancy to use the facilities of
SADDLEBROOK upon payment by the tenant of such costs and charges which the Club
may make for any and all services and facilities and upon tenant's complying
with all rules and regulations of the Club. The Owner shall not be liable for
any charges or expenses of tenant in connection with his use of the Club
facilities and services, and if any credit is extended by SADDLEBROOK GOLF AND
TENNIS CLUB to tenant, the Club shall be responsible for the collection of the
indedtedness.
(f) To authorize the Agent to utilize seasonal rates, to grant discounts in
room rates to individuals and/or groups and to utilize package plans. All
package plan discounts will be allocated on a pro-rata basis to all cost
centers affected.
(13) EXTENSION OF RENTAL POOL. It is recognized that Agent plans to expand
the present condominium development of the property it owns or acquires in
Pasco County, Florida, if there is good public acceptance of same. In such
event, it is recognized that it may be economically desirable to extend the
rental pool hereunder on a common basis with other condominium projects and
with common agency management. Agent therefore is specifically permitted to
undertake the duties as Agent under similar rental pool arrangements to this
one for other condominium apartments which are a part of SADDLEBROOK RESORTS
and, to the extent that such rental pool is on a common basis with the terms
hereof, to apply common administration to the rental pool so created on a
basis of equitable participation by condominium apartment units subjected to
the terms hereof or of similar agreements to this one.
(14) ACCOUNTING AND RECORDS. Agent shall cause appropriate books and
records to be maintained for the rental pool, which books and records shall be
subject to examination by or on behalf of participating Owners at any and
all reasonable times. In addition to quarterly distribution of accounting data
in connection with distribution of rental shares as per paragraph 11 hereof,
Agent will cause an annual summary to be distributed to each Owner in such form
as is useful for Owner's income, expense, tax, and depreciation records.
(15) TERMINATION. Agent may terminate its designation hereunder upon giving
of six (6) months' written notice. Such termination will not of itself
terminate the rental pool, and the Owners participating therein may designate a
replacement manager for the performance of Agent's duties hereunder effective
with such termination. Terms of successor agent's appointment shall be as
agreed between Owners and such successor and, to the extent that such successor
agent does not thereby assume the Agent's duties hereunder, the same shall be
the obligation and expense of the participating Owners. Upon expiration of the
term hereof, or as the same may be renewed or upon termination hereof by Agent
under the provisions of this paragraph, Agent will offer for sale to the
management of the rental pool Owner's participating in the rental pool at the
then mortized cost thereof, the innkeeper's supplies then in use by Agent in
the management of the rental pool hereunder, and if the same be purchased by
participants for continuing rental pool, the expense of such acquisition shall
require the Agent to acquire charge against the Owners electing to participate
therein, provided, however, that nothing herein shall require the Agent to
acquire innkeeper's supplies should Agent engage the services of an independent
operating firm as hereinafter provided. Participating Owners may individually
withdraw from the rental pool upon six (6) months' written notice to Agent as
heretofore provided. Such withdrawl by an individual Owner shall not terminate
the rental pool as between Agent and other participating Owners. In the
event of transfer by Owner of his condominium apartment in the SADDLEBROOK
project to a new owner, any such sale shall be subject to the current rental
reservations for a period of six months after closing, however, the successor
owner shall not otherwise be a participating member of the rental pool except
by joining as a party thereto by execution and delivery of a similar agreement
to this Agreement.
(16) INSURANCE. Owner recognizes that the maintenance of fire and extended
coverage insurance upon the common property of the condominium project is an
ordinary and assessable cost of the condominium, exclusive of the agency
arrangements hereunder. Additionally, Owner recognizes the maintenance of fire
and extended coverage insurance upon Owner's property located at Owner's
apartment unit in the condominium project is the Owner's own responsibility.
Recognizing that the conduct of the rental pool hereunder is for the common
benefit of the participants, Owner covenants that he will maintain such
additional insurance as he deems necessary with the subrogation waiver clause
provisions, and Owner hereby waives subrogation as to damage or destruction
of his property to the extent that the same may occur during or arise in
connection with rental occupancy thereof or the conduct of the rental pool
hereunder. Agent will procure, as a rental pool expense chargeable to Agent's
share of the rental income, liability insurance protecting the rental pool, the
participants therein and the Agent as to liability for property damage, bodily
injury or death occuring or claimed to occur by reason of or connected with the
rental pool operations hereunder or the conditions of the rented property or
common property therewith. Agent is further authorized, but only as Agent may
determine economically feasible, in the name of itself and the rental pool, to
procure burglary and theft insurance, use and occupancy insurance and fidelity
bond coverages.
(17) MAINTENANCE OF OWNER'S APARTMENT UNIT. The Agent is not responsible
for repair, restoration, redecorating or other expenses arising by reason of
ordinary wear, tear, obsolescence and depreciation. Owner recognizes such
expenditures as within Owner's responsibility and, to the extent connected with
rental pool participation, adequately compensated by the occupancy fee provided
for in paragraph 7(b) hereof.
(18) AGENT'S DELEGATION OF DUTIES TO AN INDEPENDENT OPERATOR. The parties
agree that Agent has the right to delegate many of Agent's duties to an
independent operating corporation at Agent's discretion. Such delegation may
include, but is not limited to, arranging for all advertising and promotion,
employing a general manager and other necessary personnel, maintaining the
books and records of the rental pool, staffing and operating a rental
reservation system and any and all other operations and employment of personnel
which are consistent with the operation and maintenance of a recreational
resort facility. Owner shall have no liability for any charges made to Agent
for the services of such independent operator, and any and all cost for such
services shall be paid by Agent out of its portion of the gross rentals.
(19) ESCROW ACCOUNT. Agent will establish an Escrow Account in which shall
be deposited quarterly Owner's ten percent (10%) occupancy (which equals 10% of
the net rental income) for use of its individual apartment in the rental pool,
such ten percent (10%) occupancy fee being heretofore more fully described in
paragraph 7(b). The Escrow Account is established for the purpose of enabling
Agent to have funds on hand from which Agent, at its sole discretion, may
maintain in the interior of each apartment, including maintenance,
redecoration, repair and/or replacement of walls, ceilings, floors, carpeting,
furniture, fixtures and equipment, such redecoration, repairs and replacement
being necessitated by normal wear and use. The parties acknowledge that
establishment of such account and the repair, replacement and redecoration is
necessary to keep all participating apartments in the rental pool up to
standards established for SADDLEBROOK. Subject to limitations set forth in
paragraph 6, Agent, in its sole discretion, shall have the
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EXHIBIT 10.2 Page 4 of 4
right to expend from said Escrow Account such funds as are therein set aside
for such redecoration, repairs and replacement. Agent agrees that each
apartment in the rental pool shall be maintained in a condition with the
standards established for SADDLEBROOK as a resort hotel, and Owner agrees that
he will provide such additional funds as are necessary for this maintenance and
upkeep upon request of management. Thereafter, Agent shall deposit the Owner's
occupancy fee into the Escrow Account until such time as the Owner shall have on
deposit in said Escrow Account twenty percent (20%) of the then existing value
of the standard furniture package for condominium apartment unit comparable to
Owner's unit. Additional funds will be deposited from Owner's occupancy fees
from time to time in order to maintain Owner's interest in the Escrow Account
at the level as heretofore described. The Escrow Account shall be an
interest-bearing account to the extent practicable, and interest shall be
credited to the respected apartment Owner's share of the funds in said account.
Agent shall annually report to the apartment Owner on all expenditures made from
said Escrow Account on his apartment and as to the balance remaining in
said Escrow Account together with any interest accrued thereon. If an Owner's
Escrow Account, including interest, shall exceed the twenty percent (20%)
maximum, the excess will be refunded on an annual basis. In the event the
Owner should sell his unit, the Escrow balance shall be returned to him within
forty-five (45) days from the transfer of ownership and the new owner shall be
required to deposit $500.00 into the Reserve Account if he elects to
participate in the SADDLEBROOK rental pool.
(20) NOTICES, ASSIGNMENT AND ENFORCEMENT. Notices required or appropriate
hereunder may be given in writing, addressed to the recipient at the address
set forth above as to Agent, or set forth below as to Owner and deposited in
the United States mails, postage prepaid, and in such case shall be deemed
received on the fifth business day following such dispatch. Either party, by
written notice, may provide a different address for the receipt of notice
hereunder. Because of the necessity of dependable performance by the parties
hereto of their respective undertakings, neither party may assign its rights or
obligations hereunder to any other person or party except with written consent
of the other party hereto, other than as provided in paragraph 18 hereof. This
Agreement is binding upon and for the benefit of the respective parties, their
heirs, representatives, successors and to the extent permitted hereby, their
respective assigns. In the event an action is brought to enforce the terms
hereof, the prevailing party shall be entitled to recover the expenses of such
action, including reasonable attorney's fees therefor.
(21) CONDITIONS OF OCCUPANCY. Agent may enter Owner's apartment, and Agent
may remove such personal effects as Agent determines appropriate to be moved,
storing the same for reinstallation at the end of the rental period, provided,
however, that nothing herein shall obligate Agent to so remove such personal
effects or create any liability against Agent for the failure to remove such
personal effects. Agent will cause the apartment to be cleaned and prepared
for rental occupancy and so maintained during rental occupancy. At the
termination of rental occupancy, Agent will remove linens and supplies utilized
for such occupancy and will replace linens and any personal effects of Owner,
leaving the premises for re-occupancy by Owner.
(22) MISCELLANEOUS MATTERS.
(a) This Agreement contains all the terms and conditions agreed to
between the parties, and any amendments or modifications shall be in writing
and executed with the same formality at this Agreement.
(b) Whenever used, the singular number shall include the plural, the
plural the singular, and the use of any gender shall include all genders.
(c) The parties agree that this Agreement shall be interpreted under the
laws of the State of Florida and that the invalidity of one or more parts of
the Agreement shall not affect the remaining parts of the Agreement.
Signed sealed and delivered in the presence of SADDLEBROOK RESORTS, INC.
By
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Witness Agent
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As to Agent Witness
X
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Witness Owner
X
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Witness Owner
----------------------------------
Address
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Social Security Number of Owner
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