IRON HORSE GOLF CLUB, INC.
FREQUENTLY ASKED QUESTIONS

The Iron Horse Golf Club, Inc. (the “Club”) is a Montana non-profit corporation organized for the purpose of enabling its members and guests to use the golf, tennis, swimming, fitness and social facilities available at the Club (the “Club Facilities”).

A member-owned club permits its members to control the Club through the right to vote. The operation of the Club Facilities is accomplished through the direction of a “Board of Directors,” which is ultimately elected by the members. This Board oversees the management of the Club.  Major issues are normally decided only by the vote of the members, such as capital assessments, amendments to the Club’s Articles of Incorporation and By-Laws that are materially adverse to the members’ rights, and mortgaging the Club Facilities.

As a result of member control, a member-owned club more assumes the characteristics of its membership. The Club experience and lifestyle are enhanced by the heightened interest and participation of member-owners and the greater continuity in the membership, which is found in the member-owned club. Member ownership also creates a greater cohesiveness within the community.

Member-ownership answers the open questions as to what will become of the Club Facilities in the future, by clearly establishing which entity will own and control the Club Facilities after the development of the Iron Horse residential community is complete. The members themselves will ultimately set the rules and costs of membership privileges.

Iron Horse at Whitefish, LLC, a Delaware limited liability company (the “Company”) has transferred to the Club all of its right, title and interest in the Club Facilities, including the land upon which the Club Facilities will be constructed. In consideration for the Club’s acquisition of the Company’s interest in the Club Facilities, the Club has transferred to the Company a portion of the Equity Memberships which may be issued in the Club (“Company Equity Membership”) and the rights to the proceeds therefrom and retained the remainder of the Equity Memberships.
The Club will fund the costs of constructing and equipping the Club Facilities from membership contributions received from the issuance of the memberships retained by the Club. All costs of construction will be paid by the Club from the proceeds of membership it sells and members shall not be assessed for the costs of construction.

The Club Facilities include the following:

• 18-hole Tom Fazio golf course
• clubhouse consisting of approximately 26,000 square feet
• golf pro shop
• practice facility
• dining room and mixed grill
• fitness center
• men’s and ladies’ locker room facilities
• massage rooms
• Fish Camp Lodge
• four tennis courts
• two swimming pools
• marina on Whitefish Lake

No. You are obligated to continue paying all dues, fees, charges, etc. until your membership is reissued through the Club.

The construction of the Club Facilities was completed in phases: Entire 18 holes of golf course during the summer of 2000 Clubhouse during the summer of 2001; and Remainder of Club Facilities during the summer of 2002 Expansion in 2009

The Club will offer two categories of membership: Golf Membership and Social Membership.

The maximum number of Golf Memberships will not exceed 300 and the maximum number of Social Memberships will not exceed 25.

Golf Members are entitled to 4 votes per membership and Social Members are entitled to 1 vote per membership on all matters to be voted on by the members of the Club.

Golf Members will be entitled to use all the Club Facilities. Golf Members will pay cart fees but will not be required to pay green fees or court fees. Golf Members are entitled to reserve golf tee times and tennis court times in accordance with the policies of the Club announced from time to time.

A Social Membership entitles the member to use all dining, tennis, swimming, marina, fitness, and social facilities of the Club. Prior to October 1, Social Members are subject to the guest policy when golfing (must be accompanied by a Golf Member and pay guest fees). After October 1, they may play the course up to 6 times unaccompanied and do not pay guest fees (per calendar year).

Yes, members may upgrade their memberships to a higher category membership, subject to availability and if invited, as determined by the Club, by paying the difference between the membership contribution and dues then charged for the member’s category of membership and the membership contribution and dues then charged for the higher category of membership.

Equity Memberships may be offered by invitation to persons at the sole discretion of the Club.

The voting members of the Club will elect the members of the Board of Directors.

Yes, the Iron Horse Golf Club is Member owned and is controlled by the Equity Members.

You must submit a fully completed and executed Application for Membership and Membership Purchase Agreement and a check for the required amount. If approved, you will receive an invitation for membership.

Yes. Memberships may be held in the name of an individual or an individual and the individual’s spouse. Additionally, for the convenience of members, membership may be held in the name of an entity which will be required to designate the individual or family who will have the right to use the membership. The entity may designate only one person or family, who must be an officer or director of the entity, to be the designated user. Changes in such designation are discouraged and may be permitted only in the Club’s sole and absolute discretion. Others not designated as the user may only use the Club Facilities as a guest, subject to the By-Laws and Rules and Regulations.

Upon approval for membership, you will receive a membership certificate confirming your ownership interest in the Club.

Yes. Membership entitles the member, his or her spouse and their unmarried children under the age of 23 who reside at home or attend school on a full-time basis to use the Club Facilities in accordance with the membership category selected by the member. In addition, the Club may permit a member’s parents, adult children and grandchildren to use the Club Facilities as Extended Family in accordance with the member’s membership category and upon payment of applicable fees and charges established by the Club from time to time.
An unmarried member living together with another individual in the same household as a family unit may designate the other individual to use the Club Facilities as an immediate family member on a membership year basis, subject to the approval of the Club, in its sole discretion. The member shall be responsible for the payment of all charges and fees incurred by the designated user. The Club reserves the right to establish such fees and other rules it deems appropriate.

Yes. You may invite guests to use the Club Facilities in accordance with the privileges granted by the category of membership selected and in accordance with the Rules and Regulations and By- Laws of the Club relating to guests, which may include restrictions on the number of times a guest may use all or a portion of the Club Facilities and upon the payment of applicable guest fees and charges established by the Club from time to time.

The purchase price of an Equity Membership is set forth in the Membership Purchase Agreement. The purchase price for memberships will be the Market Price in effect at the time of application for membership in the Club.

Each year the Board of Directors will determine the amount of dues to be payable each year in advance for the next membership year. The amount of dues to be paid by members may be set at any level deemed appropriate by the Club. The current dues for use of the Club Facilities are set forth in the Schedule of Dues and Charges. The amount of dues for subsequent years is subject to change.

Assessments for capital expenditures to the golf facilities and tennis facilities shall be voted on by the Golf Members and shall be paid by the Golf Members. Assessments for capital expenditures for the tennis courts or swimming pool facilities will be paid by Golf Members. All other assessments for capital expenditures shall be voted on by and paid equally among Equity Memberships.

A resigned Equity Member may arrange for the Club to reissue his or her membership to the subsequent purchaser of his or her home or homesite in the Community, if approved for membership.

Yes, your resigned membership may be reissued through the Club by resigning and arranging for the Club to reissue the membership through the Market Based Plan.

An Equity Member may transfer his or her membership through the Club to his or her adult child over the age of 18. The transfer will be subject to the approval of the Club and to such capital contribution or transfer fee determined by the Club from time to time. The membership will not be subject to any waiting lists.

Yes, you are entitled to a portion of your membership contribution after all dues, fees, charges, and the Capital Contribution have been met and your membership has been reissued by the Club.

Yes. Upon your death, your spouse may continue as a member without payment of any additional purchase price. If you are not survived by a spouse, then the legatee or heir of your membership certificate, if approved by the Club, will have the right to acquire your membership without the payment of any additional purchase price.

In the event of the divorce or separation of married members, the membership, including all of its rights and benefits will vest in the spouse awarded the membership certificate by an agreement of separation or a decree of divorce. Until the award of the membership and use privileges, both spouses will be jointly and severally liable for all dues and charges.

Presently, no plans exist for food and beverage monthly minimums.

Complete details about membership opportunities are available from the General Manager or Membership Director who can also answer any questions regarding the Club and its operation.
For further information, please contact:
Iron Horse Golf Club, Inc.
2150 Iron Horse Drive
Whitefish, MT 59937
Telephone: (406) 863-3100