MAY 2023.RULES & REGS

Control with such Person or is a director or officer or member of such Person or an Affiliate of such Person.

d. “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership of voting securities, by contract or otherwise. “Controlled” or “Controlling” shall have correlative meanings. “Person” shall mean any individ ual, corporation, partnership, joint venture, limited liability company, estate, trust or unincorporated association and any fiduciary acting in such capacity on behalf of any of the foregoing. Upon purchase of a Lot by a purchaser approved for Developer status, the Developer, in lieu of making the full Equity Payment then required to be paid under Section A of this Rule X, shall have the option to pay to the Association only that portion of the Equity payment which would be retained by the Association and allocated to the capital reserve account upon a sale of the Lot to a new Member, as set forth in Section A of this Rule X for a period of no more than twenty-four (24) months from the date of closing on such Lot, provided that, after said twenty-four (24) month period, the Developer shall be required to pay the full Equity Payment on the same terms as any other new Member. The payment of the portion of the equity payment returnable to the Member selling to the Developer shall be deferred until a re-sale of the Lot to a new Member who pays the full equity payment set forth in Section A of this Rule X. Upon payment of the full equity payment to the Association by the new Member, the Association shall pay (1) to the original seller its refundable equity less any indebtedness owed to the Association and (2) to the Developer, the lesser of (i) the amount of the equity payment paid upon its purchase of the Lot or (ii) the balance of such equity payment, less any indebtedness owed to the Association. The excess, if any, of such equity payment after the payments to the Member who sold to the Developer and the Developer, as set forth in the preceding sentence, shall be allocated to the capital reserve account of the Association. A Developer who exercises the foregoing option shall not become a Member, shall not be entitled to occupy or allow occupancy of the Lot or the use or allow use of the Recreational Facilities (except as to a Developer who is already a Member and who has the right to use the Recreational Facilities as the Owner of another Lot), but shall be obligated for the payment of all recreational fees, property owner charges, Assessments and 2. Equity Requirements for Developers and Members Acquiring Additional Lots a. e.

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