HERITAGE MEMBERSHIP POLICES

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1 HERITAGE MEMBERSHIP POLICES 1. Membership Rights. Membership is a non-proprietary privilege to use the recreational facilities operated by Heritage Golf Group ( HGG ) doing business as Port Royal Golf & Tennis Club ( Club ). Memberships are issued in accordance with the Agreement between Marathon Properties, Inc. and the Association of Land-owners of Port Royal Plantation, Inc. dated November 12, 1988, as amended by the Agreement between Port Royal Golf L.P. and the Association of Landowners of Port Royal Plantation, Inc. dated July 25, 1991 (collectively, the Agreement.) The Agreements, together with the By- Laws and Rules and Regulations promulgated by the Club, govern the membership program at the Club ( PRPC ), the Membership Application, and the Membership Policies and rules and regulations promulgated by the Club, govern the membership program at the Club and should be reviewed by all prospective members. By accepting membership privileges, the member and his or her immediate family agrees to be bound by the documents referenced above, as they may be modified from time to time. Membership is not an investment in the Club, nor does it provide any equity or ownership interest in Port Royal Plantation Club, Heritage Golf Group or the Club facilities. A member acquires only a revocable license to use the Club facilities. 2. Membership Categories. HGG offers refundable and non-refundable Sports, Golf, Tennis and Social Memberships in the PRPC. These membership categories are designated as Charter Memberships. Additional membership categories may be offered from time to time by HGG. Upon acceptance by

2 HGG (and confirmation of eligibility by PRPC in the case of Charter Members), payment of the required initiation deposit or initiation fee and the appropriate dues and charges, and by complying with all rules and regulations, members will have the following use privileges: a. Sports Membership - Sports Membership entitles the member to use all of the amenities of the golf course, driving range, tennis facilities and clubhouse, and to attend the members social functions. Sports Members are not required to pay greens fees or court fees but are required to pay usage fees including golf cart fees, locker rental fees, bag storage and other fees set by HGG. b. Golf Membership - Golf Membership entitles the member to use all of the amenities of the golf course, driving range and clubhouse, and to attend members social functions. Golf Members are not required to pay greens fees but are required to pay usage fees including golf cart fees, locker rental fees, bag storage and other fees set by HGG. c. Tennis Membership - Tennis Membership entitles the member to use all of the amenities of the tennis facilities and clubhouse, and to attend members social functions. Tennis Members are not required to pay court fees but are required to pay other fees set by HGG. In addition, tennis members may play golf once monthly for a maximum of twelve times annually with five day advance tee times on the member s course at the prevailing guest fee rate. d. Social Membership - Social Membership entitles the member to use all of the amenities of the clubhouse, and to attend members social functions and participate in a wide variety of member sponsored clubhouse activities such as bridge, theme parties, classes and bingo. In addition, social members may play golf once monthly for a maximum of twelve times annually with five day advance tee times on the member s course at the prevailing guest

3 fee rate. e. Croquet Memberships - This entitles the member to croquet only. If this member chooses to attend social events, then annual activity fee payment is required. f. Legacy Membership Legacy Membership is a type of Golf Membership that entitles the Member to the full use of the golf courses, practice areas and clubhouse and to attend the member s social functions without the payment of dues, greens fees, cart fees or range fees. Memberships are transferable one time to a family member for a 25% transfer fee or are 50% refundable upon return to the club and a subsequent resale per the Club s Bylaws. 3. Family Use Privileges. A member elects to pay family or single dues. If a member of any category elects to pay family dues, the use privileges of membership will include the member, his or her legal spouse, and their unmarried children twenty-one years of age or younger who are living with the member or his or her spouse, or attending school on a full-time basis. Other children are charged at guest of member rates. If a Sports, Golf or Tennis Member elects to pay Single dues, only the member will be eligible for the recreational privileges of the membership, however, the member s immediate family will be eligible for social privileges. If a Social or Racquet Club Member elects to pay single dues, only the member will be entitled to use privileges. Proof of marital status and children s ages may be required by HGG. 4. Changes in Membership Status. Changes in membership status includes changes in membership category and changes between family and single dues elections. Changes in membership status may be made only once in a twelve-month period. Any change in membership status must be submitted to the membership

4 office in writing. Request for changes of status must be made no later than the 20th day of the month prior to quarterly billing (March 20, June 20, September 20, December 20). For purposes of any applicable membership cap, the member will be deemed to be a member of the category for which he or she is paying dues and is entitled to only the privileges of that category. A member may upgrade to a membership category with a higher initiation fee subject to being placed on the applicable waiting list. A member who exercises this right must pay the difference between the initiation fee paid by the member for his or her category of membership and the initiation fee being charged for the desired membership at the time of the upgrade. In HGG s discretion, an upgrading member who has previously downgraded may be permitted to upgrade on a space available basis, upon such terms and conditions as HGG may determine from time to time, which will include the payment of the then applicable charges. In HGG s discretion, a member may downgrade to a membership category with a lower initiation fee subject to being placed on the applicable waiting list. A downgrading member will not be entitled to any refund of his or her initiation fee at the time of the downgrade. 5. Resident/Non Resident Classification. A member will be classified as a Resident Member if the member or a member of his or her immediate family resides within 100-mile radius of the Club during six months in a calendar year, or uses the Club facilities during six months in a calendar year. Residence in the area or use of the Club facilities for one day or every day in a month is counted as one month s residence or use. A member will be classified as a Non-Resident Member if neither the member nor a member of his or her immediate family reside within a 100-mile radius of the Club during six months in a calendar year, or uses the Club facilities

5 during six months in a calendar year. Residence in the area or use of the Club facilities during six months within a calendar year will automatically place the Non- Resident Member in the Resident Member category. 6. Repayment of Refundable Initiation Deposit. HGG will repay to a Sports, Golf, Tennis or Social Member 100% of the initiation deposit paid for a r e f u n d a b l e membership, without interest upon the earlier of (a) 30 years from the date of acceptance or (b) resignation and replacement of the member s membership as set forth below. HGG will deduct from the amount to be paid to the member any amount which the member owes to HGG. 7. Resignation and Refund of Membership. Memberships are transferable to HGG, or to the member s spouse or child upon the member s death. Members who desire to resign and obtain a refund of their initiation deposit must give the membership office written notice that they have resigned. -Resigned refundable memberships will be placed on waiting lists for refunding of the initiation deposit in the order in which written notice of resignation is received at the membership office of the Club, provided all outstanding amounts are paid to the Club (full initiation deposit, dues, charges, etc.). Two waiting lists will be maintained, one for resigned Sports and Golf Members and one for resigned Tennis and Social Members. A resigned member must continue to pay dues and all other amounts required of members and will continue to have use privileges through the quarter during which the resignation notice is received by the membership office. Written notice of resignation must be submitted to the membership office by the 20th day of the month prior to the quarterly billing. The resignation will be confirmed in writing by the Membership Director.

6 Prior to the initial issuance of all Sports and Golf Memberships, the proceeds from the sale of every fifth Sports or Golf Membership, other than those sold to the purchaser of a member s residence or lot in Port Royal Plantation, will be used to refund a resigned Sports or Golf Membership from the waiting list, if there is a membership on the waiting list awaiting refund at that time. Tennis and Social Memberships are also refunded using the procedure described above. After the initial issuance of all Sports and Golf Memberships, the proceeds from the sale of each Golf or Sports Membership, other than those sold to the purchaser of a member s residence or lot in Port Royal Plantation, will be used to refund a resigned Golf or Sports Membership. As an exception to the waiting list policy described above, a member who owns a residence or lot in Port Royal Plantation may at all times resign his or her membership and arrange for HGG to issue a membership of a comparable category to the purchaser of the residence or lot. A Sports or Golf Member may arrange for the issuance of a Sports or Golf Membership, and a Tennis or Social member may arrange for the issuance of a Tennis or Social Membership. The purchaser must be approved for membership. If the purchaser pays the then current initiation deposit in full, HGG will immediately refund the resigned member s initiation deposit. If the purchaser acquires the membership under a payment plan, the resigning member may elect either (i) to receive a refund of his or her initiation deposit pursuant to the terms of the payment plan, or (ii) to place his or her membership on the waiting list for refund as described above. HGG may, but is not obligated to, refund initiation deposits under other circumstances deemed appropriate by HGG. An upgrade to a Legacy Membership by a current member of the Club shall not be considered a sale of a Golf Membership pursuant to this Section 7.

7 8. Divorce. In the case of divorce of a married member owning Port Royal Plantation property, the membership shall belong to the spouse retaining ownership of the Port Royal property, provided, however, that if the other spouse is awarded occupancy of the property or if the parties retain title in their joint names, both parties may retain membership but shall be required to pay one additional initiation deposit and separate dues. In the case of divorce of a married member not owning Port Royal property, the membership shall belong to the spouse awarded the membership by agreement or court order. The spouse subject to termination due to divorce will continue to have membership privileges through the end of the quarter during which the award is made provided the membership dues are current. Only one person and his or her immediate family may exercise the privileges of membership at any time. In no case will HGG become involved in disputes between separated or divorced persons, or involving the heirs of deceased members, or in disputes over the ownership of Port Royal Plantation properties or memberships. In the case of such disputes, HGG may at any time and in its discretion, suspend all of the privileges associated with the membership in question until such disputes are resolved and HGG receives evidence satisfactory to it of the resolution of such disputes. All dues and charges must continue to be paid and failure to pay all dues and charges may result in disciplinary action, including expulsion. 9 Death of Member. Upon the death of an active member, the surviving spouse or designated child of the member, if any, may continue membership privileges without the payment of any additional initiation deposit. Once the Club receives written notice that the deceased member is not survived

8 by a spouse or designated child, or that the spouse or designated child does not wish to continue the membership, the membership will be deemed resigned and, if refundable, will be the next membership refunded from the applicable waiting list unless transferred to the purchaser of the deceased member s Port Royal Plantation residence or lot. Upon such refund, the initiation deposit paid by the member will be returned to the member s estate. In the event the membership is deemed resigned and no spouse or child has used the membership since the date of the member s death, dues will cease accruing on the date of the member s death. 10. Accounting/Legal Responsibility. Dues are billed quarterly in January, April, July and October. Dues become effective immediately upon acceptance and are prorated until the end of the quarter. Personal Club charges (cart fees, greens fees, guest fees, merchandise, food and beverage, etc.) are billed on a monthly basis. Assessments, if any, are billed quarterly with dues. Each member s Club account shall be due and payable upon receipt of the statement. In the event a member s account remains unpaid for a period of 25 days after the date of the statement, interest (at 1 1/2% per month) will be charged on the unpaid balance until paid. In the event a member s account remains unpaid for a period of 60 days after the date of the statement, HGG will suspend that member s credit privileges and may restrict or suspend the member. A member may be expelled if his or her account remains unpaid for a period of 90 days after the date of the statement. If the Club account of any member is delinquent, HGG may at its option take whatever legal action it deems necessary to effect collection. Each member as a condition of membership assumes sole responsibility for property damage and/or personal injury caused by the member, and family member or guest. The

9 cost of any damage shall be charged to the members Club account. Any member, guest or other person who, in any manner, makes use of any facility, privilege or service of the Club shall do so at their own risk. 11. Discipline Use of the Club facilities may be restricted, suspended or terminated by HGG if, in the sole judgment of HGG, the member, his or her immediate family or guests engage in conduct which is improper or likely to endanger the welfare, safety, harmony or good reputation of the Club or its members. HGG will consult with PRPC as appropriate in determining disciplinary action. No member shall on account of any such restriction, suspension, expulsion or resignation be entitled to any refund of dues or any other fees. -During the restriction or suspension, dues and other charges shall continue to accrue and shall be paid in full prior to reinstatement of use privileges. Any member of the Club whose use privileges have been terminated shall only be eligible to use the Club facilities at the discretion of HGG. In the event of disciplinary action by HGG, a member shall be notified of the proposed action and shall be given an opportunity to be heard by HGG to show cause why such member should not be disciplined in accordance with these Membership Policies. If the member desires to be heard, the member must provide a written request for a hearing to the membership office within 10 days of the date of HGG s notice to the member of the proposed action. Upon HGG receipt of the written request for a hearing, HGG shall set a time and date not less than 10 days thereafter for such hearing. 12. Guest. All guests must be registered by the sponsoring member. Guests will be entitled to use the Club facilities

10 only in accordance with the same privileges of the sponsoring member and upon payment of all guest fees and charges. The sponsoring member is responsible for all charges incurred by, and the conduct of, his or her guest. Guest privileges may be denied, withdrawn or revoked at any time for a reason considered sufficient by HGG in its sole and absolute discretion. There is currently no limit on the number of guests a member may sponsor per day (except on a course while it is designated for member only play), nor on the number of times a particular guest may use the Club facilities, (except in conjunction with member functions or play on the course before 11:30 AM while it is designated for members only play), however, guest privileges may be limited by HGG from time to time. Guests playing a course while it is designated for memberonly play must be accompanied by the sponsoring member. Notice of such limitations will be given to the members. 13. Membership Application. HGG will be the only entity entitled to sell memberships. An applicant for membership must submit a fully completed and signed Application for Membership together with the amount of the initiation deposit (or initiation fee in the case of a Racquet Club Member) then due. All Applications must be in the name of an individual or entity. HGG may turn down an Application for membership if the applicant is an established poor credit risk, a convicted felon, has been expelled from other membership clubs or for any other reason permitted by law. HGG will not discriminate based on the applicant s sex, race, color, religion, national origin, handicap, age, or marital status. All applicants for Sports, Golf, Tennis or Social Membership who own property in Port Royal Plantation must be members in good standing of the Association of Landowners of Port Royal Plantation, Inc.

11 14. General Club Rules. a. Rules of Play. Members are required to familiarize themselves, their family and their guests with the rules and etiquette of golf as outlined in the United States Golf Association handbook and the rules and etiquette of tennis as outlined in the United States Tennis Association handbook. Failure to abide by the USGA or USTA rules (except when superseded by printed or posted local rules) may result in restriction, suspension or expulsion. b. Supervision. The golf professional, tennis professional and food and beverage manager, acting under the supervision of the Club manager, have responsibility for supervision and control of all matters relating to use of the golf course, tennis facilities and clubhouse, respectively. The golf professional, tennis professional and food and beverage manager may refuse privileges to anyone who in their discretion, violates the rules of play, Club etiquette or the dress code. Responsibility for such supervision may be delegated to starters and other assistants. c. Registration for Play. All members and their guests must register with the pro shop prior to using the golf course or tennis courts. Tennis players will be advised as to court assignment when they check in with the pro shop. d. Dining Room Dress Code. Casual attire in good taste is the appropriate attire in the dining room of the clubhouse. Dress restrictions in the dining room may be imposed or waived for specifically designed special events and times and will be announced in advance. e. Food and Beverage. Members are prohibited from bringing food or beverages onto the Club premises that are not purchased from the Club. P e r s o n a l l y o w n e d b everage coolers are strictly prohibited.

12 f. Children. Unaccompanied children age 11 or younger are not permitted to use the Club facilities without the prior written approval of the Club management. Children age five or younger are not permitted on the golf courses whether accompanied or not. g. Banquets and Special Functions. The Catering Coordinator and Sales Manager should be contacted for information and reservations regarding banquets and special functions. All reservations for banquets and special functions require a deposit payment. The number of guests attending must be guaranteed three working days before the function date. The food and beverage staff will prepare 5% more than the guaranteed quantity in case of extra attendance. The hosting member is required to pay the costs for the guaranteed quantity as well as the cost of any service rendered above this quantity. Payment must be made in full no later than the day of the function. Payment may be made in cash or by check, charge card or charge to the hosting member s account. Management reserves the right to cancel a function or change the date of a function not less than 60 days prior to the date of a reserved function. In the event of cancellation, HGG will refund 100% of the room reservation deposit. Any member who cancels a reservation more than 90 days before the function date will receive a 100% refund of the room reservation deposit. Any member who cancels a reservation less than 90 days before the function date shall forfeit all of his or her room reservation deposit. A member must give notice of a cancellation to the catering office in writing. Any member who cancels a reservation less than 3 days prior to the scheduled time of the event will be obligated to pay all incurred costs of the event. 15. Golf Rules. a. General. Golf rules, regulations, procedures, and policies may be established from time to time by HGG in its discretion, and

13 will be available in the pro shop. Such rules, regulations, procedures, and policies shall supplement these rules. HGG will confer with PRPC regarding such changes as provided by the PRPC By-Laws. b. Tee Times. HGG reserves the right, with input from the PRPC, to determine advance tee time policies from time to time as part of its ability to operate the Club. The present advance reservation policies are set forth below: (i) Sports and Golf Members may schedule tee times on the members course two weeks in advance through the Reservation System. (ii) Tennis and Social Members may schedule tee times on the members course five days in advance through the Reservation System. c. Equipment. Every player must have his own set of golf clubs and a golf bag. d. Golf Dress Code. Shirts must be worn at all times on the golf course. Men s shirts must have collars. Tasteful shirts with crew neck collars may be acceptable however, t-shirts will not be permitted. Shorts must be of Bermudalength or a style specifically designed for golf. Golf shoes must be worn on the course. All the following types of clothing are prohibited on the golf course: work jeans of all types and designs; short shorts, cutoffs, running shorts, tennis skirts, t- shirts and tank tops. e. Practice. When practicing, members are to use the front sections of the driving range and practice range unless otherwise specified by the Director of Golf or head teaching professional. The back section of the range is restricted to teaching only. Under no circumstance are the regular tees, greens or fairways to be used as practice areas. When playing the course, each player may have only one ball in play at all times, except when, pursuant to

14 USGA Rules, a provisional ball is to be played. f. Playing Groups. No more than four players per group are permitted, unless prior approval has been obtained from the head golf professional. Twosomes are discouraged from playing during busy times. g. Golf Carts. Carts are to carry no more than two riders and two golf bags at any time. Carts may be operated by anyone 16 years of age or older, providing that person has a valid driver s license. Privately owned carts are not permitted on the Club premises. Carts are always to be driven on the cart paths. Drivers must observe and obey all signs, stakes, roped- off areas and other markers used to guide carts. When necessary, carts may be driven to the golf ball only on a 90 degree angle from the cart path. Carts are not to be driven over sprinkler heads. Cart drivers are to avoid areas that are newly planted, wet, or under repair, and should not approach any closer than 15 yards to any tee, green, bunker, or their respective shoulders. h. Walking. Walkers must register with the pro shop prior to beginning play and must begin play from the first tee unless otherwise designated by the pro shop. Walking is permitted anytime with the requirement that they must keep up with the pace of play. i. Club Use of Courses. Management retains the right to close the courses at any time for maintenance. Except in the case of unforeseen maintenance, HGG will provide advance notice of course closure. 16. Tennis Rules. a. Reservations. A member may not make more than one reservation a day. Two hours of court time is allowed for singles play and doubles play. If players fail to appear within 10 minutes of the reserved time, the court reservation will be forfeited. Reservations for a court may

15 be made no more than one week in advance. b. Club Use of Courts. Management retains the right to close the courts at any time for maintenance. Except in the case of unforeseen maintenance, HGG will provide advance notice of multiple court closure. c. Tennis Dress Code. Members must wear appropriate attire and shoes at all times while using the tennis facilities. Men s shirts must have sleeves. No blacksole shoes of any type are permitted on the courts. 17. Hardship. In cases of medical hardship, a member may make written request to the Membership Director for waiver of the applicable rule or regulation, which request may be granted or denied in HGG s sole discretion.

16 HERITAGE GOLF & SOCIAL POLICIES Heritage Golf Director of Operations PGA Head Golf Professional Director of Golf Course Maintenance Rick Shoemaker Ben Smith Charles Duncan Guests: Guests may participate in special member sponsored events only on designated guest days. The normal guest rate will be reduced to the member cart fee rate for these specially designated guest days. Additionally, members may sponsor up to one foursome per day on the member course before 11:30 a.m., and the sponsoring member must be one of the participants. Guests playing on the member course before 12:00 noon are limited to a maximum of 12 rounds per year. After 11:30 a.m., members may sponsor more than one foursome per day as long as the member plays in one of these foursomes and they use consecutive starting times. Restrictions: Guest privileges may be denied, withdrawn, or revoked at any time for a reason considered sufficient by Heritage Golf Group in its sole & absolute discretion. There is currently no limit on the number of guests a member may sponsor per day (except on a course while it is designated for member play only) or on the number of times a particular guest may use club facilities (except in conjunction with member functions or play on a course before 12:00 noon while it is designated for memberonly play), however, guest privileges may be limited by Heritage from time to time. Notice of such limitations will be given to the members. Prizes: Prize distributio n fo r norma l schedule d event s wil l b e determine d b y th e appropriat e gol f committe e (ie. Men s, Ladies 18, Ladies 9, Mixed, etc.) A. For Special golf tournaments such as: Men s Member- Member Individual Match Play, Men s Two

17 Man Team Member-Member Stroke Play, Men s Championship, Men s Member-Member Two Man Team Match Play, Mixed Husband-Wife Championship, Ladies 18-Hole Member/Member Match Play, and Ladies 18-Hole Stroke Play,: first place ties will be settled by either an eighteen hole playoff or sudden death playoff, as prescribed by the Tournament rules. Mixed Husband-Wife Championship and Presidents Cup ties are settled by a match of cards. Ties for second and lower in all other tournaments will be settled by a match of cards. B. In any event where a match of cards is used to determine the winner such match will be based on the best score for the last nine holes. If the tying players have the same score for the last nine, use the last six holes; if necessary, use the last three holes and finally, the 18th hole. If the winners are still tied, use single hole scores beginning with #1, then #2, etc. C. Ties- Ties in the Annual Heritage Invitational will be settled as the Tournament Committee prescribes. Handicap Allowances: Handicap allowances in Club Events will be no less than those prescribed by the USGA. Members playing regular rounds will be expected to post properly all scores according to guidelines established by the golf committee. Children age five or younger are not permitted on the golf courses. Grandchildren of a sports or golf member ages six to sixteen must register in the Pro Shop with the member, pay a $5.00 fee and play in the afternoon hours at the discretion of the Director of Golf. Reservations: Sports and Golf Members may schedule starting times on the PRPC member s course through the central reservations no more than two weeks in advance. Tennis and Social members may schedule starting times on

18 the members course through central reservations no more than five days in advance. Members have access to the other courses through the Pro Shop on an as available on the day of play basis. However, members playing with two or more guests, who wish to play on other than the members course may schedule starting times 2 weeks in advance by calling Advance Reservations Members must call the Pro Shop to cancel any advance starting times they will not be using. Starting Times for regularly scheduled Men s and Ladies Days must be blocked more than two weeks in advance; the number of starting times should be based upon recent experience, usually only one more than the number used two weeks before the date in question. Blocked times which are not to be used should be released to the Pro Shop as soon as possible. Due to need for completion of maintenance work, no tee times will be available before commencement of Major Tournaments beginning at 8:00 a.m. Two starting times may be blocked out in advance for the first group in all Major tournaments starting at a later time. Tournament Start-up times will be as determined by the events Director. Check-in at the Pro Shop must occur prior to play on any course. Members should indicate at this time the number of players in their group. All Play must begin at the first tee of the member course or any of the other courses except as specifically allowed by the pro shop or for specific tournaments. Practicing, hitting practice shots, chipping and putting on any of the club courses is prohibited. Practice facilities provided by the Club are the only facilities available for this purpose. Practice rounds played by members are not precluded by this policy.

19 Recreational walking, biking, and jogging are prohibited on courses during normal playing times. Ball hawking is prohibited at all times. Tennis and Social Members are not eligible to play in planned golf events such as men s and ladies days, blitzes or other events listed on the published golf schedules. Tennis and Social members may, however, play as the invited guest of a golf member in the Club s designated Member-Guest events. The Director of Golf and/or his designate, in consultation with the individual tournament directors, has the authority to call off, postpone or cancel all golfing events due to inclement weather. Social: From time to time, guests will be invited to the events of the club and these occasions will be approved by the PRPC Board & announced in advance. To provide prospective members the opportunity to experience club activities, members and the Membership office are encouraged to invite them for a one-time attendance at a social activity. Approval beforehand is to be obtained from Rick Shoemaker, Director of Operations, and Heritage Golf at Member Course Schedule 2016 Beginning in December 2015 the club is going to a weekly member s course assignment. The below table sets forth the course assignment using the following designations: B = Barony R = Planters Row P = Planters Row

20 MONTH DATES COURSE JANUARY 4-10 R B P R FEBRUARY 1-7 B 8-14 P R B MARCH ALL B APRIL ALL P MAY ALL R JUNE ALL B JULY ALL P AUGUST ALL R SEPTEMBER ALL B OCTOBER ALL P NOVEMBER ALL R DECEMBER 1-5 R 6-11 P B R 26-1 P Heritage Golf will perform their course maintenance schedule as needed. Members will be notified in advance of any course schedule changes.

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