<PAGE>
EXHIBIT 10.1
DEVELOPMENT COORDINATION AGREEMENT
THIS AGREEMENT is made and executed this
9th day of May 2005, by and between
INVESTMENT PROPERTY ASSOCIATES, INC.
(hereinafter "IPA") of 1600 South Beacon
Boulevard, Grand Haven, Michigan 49417, and
Community Shores Bank (hereinafter
"Owner") of 1030 West Norton Avenue,
Muskegon, Michigan 49441.
PREAMBLE
1. Owner desires to have IPA perform various services with regard
to
development of a 16,000 to 20,000 square
foot banking and general office
facility on property legally described on
Exhibit A attached hereto
("Property"). Said development shall
hereinafter be referred to as the
"Project."
2. IPA has agreed to provide such services as desired of it by
Owner
all in accordance with the terms of this
Agreement.
AGREEMENT
IN CONSIDERATION of the foregoing facts and the mutual covenants
set
forth below, the parties have agreed as
follows:
1. Appointment by Owner. Owner hereby appoints IPA as its agent for
the
development of the Project and, in such
capacity, IPA shall perform on behalf of
Owner each of the following services with
respect to the Project:
a.
Assist and advise regarding site planning, land use, building
concepts and design.
b. Seek
all necessary governmental approvals for completion of
the Project including site plan and variance approvals, if
required.
c. Seek
all necessary site plan and building plan approvals
pursuant to restrictive covenants which govern the Property.
d.
Formulate a budget for the Project including all costs of site
improvements, building construction, and professional
services. Budget shall not include furnishings or banking
equipment.
e.
Contract for all necessary professional services including,
along with Owner's legal counsel, contract review and
negotiation. These services shall include, but not be limited
to architectural, engineering, interior design, and
construction.
f.
Oversee completion of final architectural plans and
specifications as well as a fully engineered site plan.
<PAGE>
g.
Secure competitive construction bids for the Project and
negotiate, with direction of Owner, final construction
contract.
h.
Process draw requests made by contractor(s) regarding the
Project including obtaining all required sworn statements,
waivers of lien, affidavits, and title insurance endorsements.
Notwithstanding anything to the contrary
herein contained, IPA shall have no
responsibility regarding the selection or
purchase of banking equipment to be
installed in Project or furnishings for the
facility; nor will IPA have any
responsibility under terms of this contract
for securing tenants for any space
within the building which is not occupied
by Owner.
2. Compensation for Services. IPA shall be paid for its services
by
Owner under this Agreement a development
coordination fee of One Hundred Thirty
Five Thousand and 00/100 Dollars
($135,000.00). The fee for the development
services rendered by IPA on behalf of Owner
in accordance with the terms of this
Agreement shall be payable to IPA in
Fifteen (15) equal monthly installments of
Nine Thousand and 00/100 Dollars
($9,000.00) each with the first payment made
upon the first day of the month following
the execution of this agreement and
subsequent payments made on the first day
of each month thereafter until paid in
full.
3. Promotion. At all times during the period that the Project is
under
construction, Owner shall maintain on the
premises of the Project a sign which
shall promote the Project and shall
designate Investment Property Associates,
Inc. as the developer of the Project.
4. Terms of Agreement. This Agreement shall remain in effect until
the
completion of all construction contemplated
by this Agreement.
5. Hold Harmless. Owner will protect, indemnify, and hold harmless
IPA
against any damages, claims, or causes of
action including costs and attorney's
fees that may arise in connection with
or
