Development Coordination Agreement

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.


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 m ...