Page 3 - 2017 Club Rules and Regulations

The Powder Horn Golf Club (the “Club”), is owned and managed by the Powder Horn Ranch, LLC (the
“Company”). The Club includes a twenty-seven (27) hole championship golf course designed by Dick
Bailey, driving range and putting green facilities for practice, a Clubhouse, a pool, fitness center, tennis
facilities, and certain other recreational and social facilities (the “Club Facilities”). Members accepted by
the Company as Club Members have a license to use the Club Facilities and do not have any ownership of
or management authority regarding the Club. The Club may engage a professional general manager and/or
a management company (herein, “Club Manager”).

These Rules are established by the Club to facilitate all Members’ use and enjoyment of the Club Facilities.
The Club Manager will enforce these Rules, and the Club retains discretion to amend these Rules from time
to time.

The Club currently offers memberships in several categories and it will continue to honor the privileges
extended to Members under earlier membership programs. The Company has and reserves unto itself the
sole right and power to define and to determine, or to re-define and to re-determine from time to time the
Club’s categories of membership; the numbers of Members that will be allowed within each membership
category; the use privileges that are associated with each membership category; and the rules or limitations
that govern each membership category. Currently, the Club allows and recognizes the membership
categories described on Appendix A to these Rules.

GENERAL RULES

1. Alcohol. Alcoholic beverages will not be sold for off premises consumption. Only alcoholic
beverages purchased from the Club may be consumed on the Club’s premises.

2. Business. Commercial advertisements shall not be posted or circulated in the Club. No business
of any kind may be solicited or transacted on Club Property or on Club’s stationery without the
Club Manager’s advance approval.

3. Charges. The Company has the exclusive prerogative to establish and to modify the dues, fees,
assessments, fines, and other charges that apply to membership which are associated with the use
of the Club Facilities. Membership use privileges are conditioned upon the Member’s timely
payment of all dues, use fees, Club Account balances, and any other charges that are due from the
Member in connection with the continuation of Membership.

4. Comments. Comments and suggestions pertaining to the Club operations should be addressed to
the Club Manager in writing.

5. Committees. At its sole discretion, the Company may establish, organize, reorganize, direct, or
disband advisory committees, such as a golf advisory committee or a social advisory committee.
Any such advisory committees would assist the Company in maintaining the quality and promoting
the proper use of the Club Facilities. If an advisory committee is established, the Company has the
exclusive prerogative to designate advisory committee members, and to define or redefine the
specific purposes of that advisory committee. The Company intends to consider, but is not bound
to follow, the advice provided by any advisory committee.

6. Employees. Members must not request special personal services from the employees of the Club.
All Club employees are supervised by the Club Manager. No Member or Guest shall reprimand or
discipline any employee or send any employee off the Club Property for any reason. Any employee
who is not rendering courteous and prompt service to Members or Guests should be reported to the