Regs & Rules

1. In case of a fire, a need for the Sheriff, Medical Emergency or other 911 emergency, call 911, then call the Front Gate Security Guard who will coordinate with the respective agency and render assistance. (Revised 10/19/98)

2. Application for Emerald Bay Windshield Stickers may be obtained at the Club Administration Office or the Guard House. Stickers can usually be picked up within 3 days at the Guard House. A $50 refundable deposit will be collected from Lessees. Refunds will be made upon termination of tenancy and return of stickers.

A. A Member may apply for a Non-Member Windshield Sticker. Applicants for Non-Member Windshield Stickers must live at the Member’s home or be a Vertical Family Member, who are not otherwise eligible for a regular Member’s sticker.

3. Emerald Bay Stickers must be removed from vehicle windshields and returned to the Club or Guard House when vehicles are sold or Membership ceases.

4. Members only may call in guests. Eighteen (18) year old and older, guests and occupants may call in the Fire Department, Sheriff’s Department, Ambulance or Service Workers.(HOA)

5. At the discretion of the Front Gate Security Guard, a thirty (30) minute pass can be issued to enable a person to enter Emerald Bay for the purpose of transporting young people to and from their homes in Emerald Bay. The pass must be returned to the Guard House upon departure.

6. Temporary admission cards will be issued to guests and workers.

7. Members inviting fifteen (15) or more persons into Emerald Bay must notify Front Gate Security in writing 24 hours in advance of their expected arrival time. Please provide a complete alphabetized list of names.

8. Realtors with proper identification will be admitted for Realty purposes.

9. Service, delivery and repair persons will not be admitted by the Gate Guard unless authorized by a Member.

10. Contractors and their employees, sub-contractors and their employees, and material delivery personnel will adhere to the following:

A. No admittance before 6:30 AM or after 7:00 PM, Monday through Saturday unless authorized by the Security Committee.

B. A pass will be issued at the time of entrance and it must be returned to the Gate Guard at the time of departure.

C. Persons with a construction permit must leave the Emerald Bay Subdivision upon completion of their work for the day, but not later than 7:00 PM, without prior authorization from the Security Committee.

D. The above personnel will be admitted to Emerald Bay only for work or delivery of materials.

11. Rules violations by workers or service personnel should be reported to Security or the Security Committee. The Security Committee will contact the individual or the individual’s employer concerning the violation. Subsequent violations may result in the individual being refused entry into Emerald Bay.

12. The Back Gate is controlled by a remote control device. Remote controllers can be obtained at the Club Administration Office. The controller will trigger the gate mechanism to open the gate, which will have an automatic closure at the end of 10 seconds. Do not attempt to pass two (2) vehicles through the gate on one opening-WAIT for the gate to close before triggering another opening. A separate controller is required for each vehicle to pass through the opening. Use of the same controller for additional openings is a violation of this rule.

13. The use of the Back Gate on Hicks Drive is a convenience and privilege extended to and intended for use only by Members’ vehicles that are identified by Emerald Bay Windshield Stickers. Any other vehicles using the Back Gate can be stopped by Security, and the gate remote controller confiscated. No service personnel, Club Employees or Non-Members are authorized to use the Back Gate; they will be trespassing on private property. Only one Back Gate opener will be issued per property owner. To prevent abuse and to control the return of controllers, when Members permanently depart from Emerald Bay, the following charge will be made:(Revised 11/19/07)

Members-$100.00 Deposit for each controller

Deposits are refundable when controllers are returned to the Club Administration Office at the time of moving from Emerald Bay.

All Fees and Dues are subject to change at any time by vote of the Board of Directors. Normally, such changes will be made only at the time a new budget is adopted, to be effective at the beginning of a New Year. The Board also has the right to make Special Assessments if deemed necessary.

1. Membership Fees: A one-time fee of $10,000 plus applicable sales taxes is charged for Membership in Emerald Bay Club, Inc. (Club), plus $2,500 for Membership in the Emerald Bay Homeowners Association (HOA). Eighty percent (80%) of the HOA Membership Dues is paid to the Emerald Bay Municipal Utility District (MUD), during the term of its lease of Emerald Bay Streets. No sales taxes are charged for membership in the HOA. These fees apply whether the Membership is purchased directly from the Club or from an existing Stockholder Member. If the selling Member owns no other property in Emerald Bay, he is entitled to a refund of 50% of the Club Initiation Fee paid by the purchaser, unless the sale is a “Forced Sale.” (As set out in Section II: (7) of the Consolidated Rules and Regulations), in which case, the selling Member is not entitled to any refund of a Club Membership or Initiation Fee.

2. Monthly Club Dues: Club Dues for Members are $204.00 per month plus applicable sales taxes, payable in advance. Club Dues for Lessees are double the dues for members for the full term of their lease except for Family Lessees (as defined by the Club Bylaws) who pay double dues only for the first six (6) months of their lease.

3. Monthly HOA Dues: Dues for the HOA are $33.50 per month, payable in advance, for the first property owned by a Member. Dues for each additional residence owned are $33.50 per month and for each additional vacant lot, $23.50 per month. Lessees are not required to pay HOA Dues.

4. Transfer Fees: When a Member sells and Emerald Bay property to another Member, a $50 Transfer Fee is due from both buyer and seller.

5. Late Fees and Returned Check Fees: Club Members who do not pay their monthly bill by the last business day of the month when charges are due shall be charged an Administration Fee of $15.00. Club Members who pay their bill by check, and the bank returns the check, shall be charged an Administration Fee of $25.00. All receipts will be credited first to past due amounts (including Administration Fees) before being applied to the Member’s current account. The Executive Committee and or the General Manager shall have the authority to make exceptions to this rule when warranted.

A. In addition to Late Fees there is interest on all Late Balances of 1.75% per annum.

1. A one-time Membership or Initiation Fee is charged for the first property purchased by a Member. This fee is charged whether the prospective Member purchases his stock directly from the Club or from an existing Member. The Board of Directors shall establish the Initiation Fee to be paid for issuance of stock to a new Member. The fee for transfer of an outstanding Stockholder Membership shall be the same amount as the Initiation Fee for a new Member. (Article Seven: Section D, Club Bylaws) No additional fee is charged for subsequent purchases of additional properties. Only one (1) share of stock may be owned by a Member, regardless of the number of properties the Member owns.

2. No Membership Fee is required of Lessees.

3. Members shall pay monthly Club Dues and HOA Dues. The Club will mail and or (email) a statement for monthly dues and all charges for food, beverage and merchandise. Dues are payable in advance and shall be paid monthly, whether or not the Member receives a statement.

4. Leased property and Lessees:

a. Lessee dues

Other Lessees (as defined in Article 3.5.4 of the Bylaws of Emerald Bay Club, Inc.) shall pay Club dues and fees equal to twice the amount of the assessed Stockholder Member dues and fees for the life of their lease;
Family Lessees shall pay Club dues and fees equal to twice the amount of the assessed Stockholder Member dues and fees for the first six (6) months of their lease and regular Club dues and fees for the remainder of their lease;
Vertical Family Lessees and Legacy Lessees shall pay regular Club dues and fees for the life of their lease.

Lessees are not required to pay HOA Dues.

b. Leased properties:

In the event that a Stockholder Member (Property Owner) owns more than one property in Emerald Bay which is considered to be a leased property in accordance with the Bylaws of the Club and/or HOA, such Stockholder Member (Lessor) shall be required to pay an additional $500.00 per month in Club dues for the second leased property and each additional leased property. (If the Stockholder Member owns only the leased property, thatMembermustpayregularClub dueseventhoughthelesseeispayingdoubleand/orsingledues. The additional $500.00 does not apply if the Stockholder Member is only leasing out one (1) property.)

(Revised, amended and adopted by the Board of Directors August 18, 2016, to be effective as of September 1, 2016.)

5. Members who lease property to others must pay HOA Dues on each leased property and all additional properties

owned.

6. Transfer of property between Members: When one Member sells an Emerald Bay property to another Member, the Club office must be notified and a Transfer Fee is due from both buyer and seller.

7. Refund: When a Member sells his property to a Non-Member, and provided the Member owns no other property in Emerald Bay, the Member is eligible for a refund in the amount of one-half the Membership Fee paid by the purchaser, unless the sale is a “Forced Sale,” such as, a foreclosure, bankruptcy, or other court ordered sale. At this point, the share of stock owned by the selling Member reverts to the Club and the Member gives up all Membership privileges (Article Seven: Section D). In the case of a “Forced Sale,” the seller’s Membership is terminated and reverts to the Club, and the selling Member is not entitled to any refund of the seller’s Membership or Initiation Fee. A “Forced Sale,” negates the payment of any Transfer Fee as contemplated by Article Seven: Section D, (2) and (3) of the Bylaws of the Club. Any subsequent resident buyer of such property must purchase the Membership from the Club by paying an Initiation or Membership Fee to the Club.

8. Continuation of Membership following a sale:

A. At the request of the selling Member, his Membership can be held open for a period of up to sixty (60) days to allow the Member to locate and purchase a preplacement home or platted lot. (Article Two: Section H) In this case, the refund called for in paragraph seven (7), is held in abeyance and the Member continues to enjoy full Membership privileges except the right to vote.

B. On approval by the Board, the open Membership may be extended for an additional sixty (60) days, in which case Club Dues and HOA Dues for the additional sixty (60) days must be paid in advance. During this interim period the Member continues to enjoy full Membership privileges except the right to vote.

C. In the event the selling Member, during the 60-day extended Membership period, leases a home from another Member, he must pay double Club Dues for sixty (60) days in advance.

D. When the extended Membership period expires without the Member’s purchase of lease of an Emerald Bay property, all Membership privileges are terminated, the Member’s Stock reverts to the Club and the Member’s 50% refund of Membership Fee will be remitted to him if applicable.

E. If the Member purchases a home in Emerald Bay within the Membership extension period, the unearned portion of his advance dues payments will be credited pro rata on a daily basis against future dues obligations.

F. If the Member is leasing an Emerald Bay property at the end of the extended open Membership period, the member becomes a Lessee Member and will pay double Club Dues for the duration of his lease.

9. Any time any owner of property or a “Designated Member” is changed, in any manner, the Business Office

shall be immediately notified of the change and provided with a copy of the document making the change.

1. Stockholder Members (hereafter “Members”) are persons owning one or more platted lots (whether improved or unimproved) within Emerald Bay, and who have met the qualifications for Membership as prescribed in Article 2: Section C, of the Club Bylaws, including the acceptance of PROTECTIVE COVENANTS FOR EMERALD BAY appropriate to the unit in which the property being purchased is situated, and as recorded in the deed records of Smith County, Texas. Said PROTECTIVE COVENANTS shall be specifically referenced in the Deed of Conveyance to be received by Members upon closing of the purchase. A copy of the Deed of Conveyance shall be provided to the Club Office immediately after closing of the purchase. Upon a finding by the Business Manager that the property being conveyed is already covered by recorded PROTECTIVE COVENANTS, this requirement may be waived by the President or his/her designee.

A. Bylaws of the HOA provide that occupancy of any and all homes in Emerald Bay subdivision shall be limited to “Single Family Occupancy” which is defined as one or more persons related by blood, marriage, or legal adoption which shall not exceed the number of persons determined by multiplying the number of bedrooms in a residential unit by two (2) or a group of not more than three (3) unrelated persons in the entire home. (Article 2: Section G, HOA Bylaws)

B. Members enjoy all the rights and privileges afforded by the Club and Homeowners Association, including the right to vote and to hold office. A married couple are considered one (1) Member for purpose of voting, but each spouse enjoys full rights and privileges of Membership, including the right to hold office or serve on committees.

C. Certain relatives of a Member residing in the Member’s household enjoy the same privileges as a Member with two (2) exceptions:

All unmarried Members of stockholder’s household family under twenty-five (25) years of age as well as parents and grandparents of a Stockholder Member living in the same residence shall be granted all privileges except as follows: (Article 2: Section C, Club Bylaws)

1. Voting

2. Holding Office

D. All other relatives living in the same household as the Member, including unmarried children over the age of twenty-five (25), are Guests and are subject to all the requirements of Article II: Section F, of the Club Bylaws, including, but not limited to, the payment of green fees as prescribed in paragraphs (C) and (D) of said Section F.

E. Children of Members who are married and desire to be permanent residents of Emerald Bay must apply for Membership or Lessee status in the same manner as other applicants, including payment of the current Membership Fee.

F. The Bylaws of the HOA provide that all persons who are not Members of the Club and who own a lot or lots in the Emerald Bay subdivision shall be Non-Member shareholders of HOA. Each Non-Member shareholder shall be entitled to one (1) vote. No Non-Member shareholder shall be entitled to hold office. (Article 2: Section B, HOA Bylaws) Non-Member shareholders must pay HOA Dues as determined by the Board.

G. Succession: Upon the death of a person either owning a share of stock or being the designee of a legal entity owning the share of stock, the Club shall treat the surviving spouse (if any) of such person as the rightful successor to the privileges and responsibilities of such ownership until such time as the Club receives an order from a court of competent jurisdiction to the contrary.

Article 2, Section G:In the case of death of any Member property owner, dues to the Club shall, during the period of estate administration, be paid by the estate, or the stock may be returned to the Club at no cost. Should the stock be returned, the eventual purchaser or owner of such property shall pay the current Initiation Fee for a Stockholder Membership. When an estate is settled and the Club property is willed to a spouse, mother, father, son, daughter, son-in-law, daughter-in-law, or grandchild there will be no Transfer Fee. (The Board of Directors interprets “Initiation Fee” and “Transfer Fee” in the article above to be the Initiation fees currently charged by both the Club and the HOA.)

H. Separation: Upon the separation, pending divorce, of a married couple holding Stockholder Membership, each spouse shall continue to be entitled to the privileges of Membership (so long as amounts owing the Club are timely paid) until the Club receives an order from a court of competent jurisdiction to the contrary. This rule does not expand the voting privilege beyond the one (1) vote to which such share is entitled. If more than one (1) ballot is cast in any election, by more than one (1) person claiming ownership, all ballots cast in that name shall be void.

I. Shareholder/Member Deeds to Family Members: When and Emerald Bay Shareholder/Member deeds ownership of their Emerald Bay Property, by virtue of which they are Members of the Emerald Bay Club, to a spouse, mother, father, son, daughter, son-in-law, daughter-in-law, or grandchild, there will be no transfer or initiation Fee, such that the grantor’s Emerald Bay Club Membership will pass to the grantee of the property so deeded.

2. Lessees: The HOA Bylaws, Article 11: Section H, states “A shareholder may own more than one house or condominium, but anyone occupying any residence other than the primary residence of the shareholder shall be classed as a lessee whether paying rent or not and whether a relative or not.”Lessees must apply for Membership and meet the same general criteria as Members.Following their acceptance, lessees are classified as “Lessee Members.” Non-Members occupying a Member’s residence for less than 31 days must pay double dues in advance for an entire month. Subject to their payment of monthly dues as established in this regulation, Lessee Members enjoy the same privileges as Stockholder Members except they may not vote or hold office.

A. The Bylaws provide for classes of Lessees:

i. Family Lessee: The parents or grandparents of Stockholder Members and their spouses residing in a residence other than the residence of a Stockholder Member.(Article Two: Section D. Paragraph A, Club Bylaws)

B. The Board has also established the additional classes of Lessee Members: The Board may establish Classes of Lessee Members.(Article Two: Section C., Club Bylaws)

i. Vertical Family Lessee Member: This class of Lessee Member shall consist of the sons or sons-in-law, the daughters or daughters-in-law, and the grandchildren of Stockholder Members and their spouses, who must reside in a residence other than the residence of a Stockholder Member.

ii.Legacy Lessee Member: This class of Lessee Members shall consist of persons who have been a Stockholder(Property Owner) Member, or their spouse, of Emerald Bay for ten (10) or more years, the Member or spouse being sixty (60) years old or older, and in good standing during that period, who sell their residence which is the subject of their Membership and lease a residence in Emerald Bay within ninety (90) days of the date of selling their Emerald Bay residence which was the subject of their Membership. To remain a Legacy Lessee Member, the Member must remain in good standing.

3. Membership Committee approval required for all Memberships. All Memberships however acquired, whether by application upon purchase of Emerald Bay property, inheritance, deed, designation, or lease, must meet all of the Membership requirements imposed by the Membership Committee, including but not limited to filing a completed and executed Membership application, providing a copy of any instrument, deed, will, court order, or contract by which the application bases their Membership, payment of the Initiation/Membership Fee where applicable, authorization for background and credit reports which meet Membership standards and requirements, and any other requirements of the Membership Committee.

In case a person who has acquired a Membership by inheritance or by deed does not meet all of the above Membership requirements, the Board of Directors may deny that Member the use of any or all Club and HOA facilities and amenities for a period of time to be determined by that Board.

4. Certain Restrictions on Membership. Notwithstanding any other provision in these Consolidated Rules and Regulations of the Emerald Bay Club, Incorporated and the Emerald Bay Homeowners Association (the “Rules and Regulations”), unless otherwise permitted for good cause in extraordinary circumstances as determined in the sole discretion of the Club Board, no person shall be admitted as a Member, Guest, or Lessee of the Club, or entitled to any rights or privileges of a Member, Lessee, or Guest of the Club if that person or any persons occupying or intending to occupy any property (i) has been convicted of any felony classified as a Third Degree Felony, Second Degree Felony, or First Degree Felony, as those terms are defined by Chapter 12 of the Texas Penal Code (ii) has been convicted of any felony classified as a Class A,B, C, D, or E felony under 18 U.S.C. S 3559 or other applicable federal law or (iii) is mandated by Court order to currently be registered as a sex offender (collectively, the “Prohibited Persons”). Additionally, no Member, Guest, or Lessee shall permit any Prohibited Person from occupying any property in Emerald Bay for any amount of time. If any Member, Guest, or Lessee violates any of the provisions of this paragraph(“Violator”), the Club Board of Directors may, in its sole discretion and after providing not less than ten (10) days written notice to the Violator and the Prohibited Person, (i) rescind the Club membership of the Violator and/or the Prohibited Person (ii) deny temporarily or permanently the use of any of the Club facilities to the Violator and/or any Prohibited Person (iii) levy penalties, including assessments, against the Violator in an amount to be determined by the Club Board of Directors (iv), exercise any other rights or remedies under the Rules and Regulations (including without limitation Article XVI of the Rules and Regulations) against the Violator and/or Prohibited Person or (v) seek to enforce any other and further claim, cause of action, or remedy at law or in equity available to the Club. Nothing in this paragraph is intended to limit the right of any Member from asserting any claim or seeking to enforce the provisions of this Paragraph against any Violator or Prohibited Person as may be otherwise authorized at law or in equity. Any notice required under this paragraph shall be deemed given if mailed by regular mail to the last known address of the recipient, hand delivered to the intended recipient, or affixed to the front door of the property in Emerald Bay where the recipient resides.

Adopted October 14, 2015

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