Section 2. Purpose of Assessments. The assessments levied by the Owner's Association shall be used exclusively to promote the recreation, health, safety, and welfare of the Owners and residents of the Property and for the improvements and maintenance of the Common Area and facilities, and easements appurtenant thereto, and for payment of local taxes and special governmental assessments on or to the Common Area.

Section 3. Maximum Annual Assessment. Until January 1, 1998, the maximum annual assessment shall be ONE HUNDRED TWENTY AND NO/100 DOLLARS ($120.00) per lot or TEN AND NO/100 DOLLARS ($10.00) per month.

(a) From and after January 1, 1998 the maximum annual assessment may not be increased each year by more than five percent (5%) above the maximum assessment for the previous year without a vote of the membership of the Owner's Association, as herein below provided.

(b) From and after January 1, 1998 the maximum annual assessment may be increased by more than five percent (5%) by a vote of two-thirds (2/3) of each class of members of the Owner's Association who are voting in person, or by proxy, at a meeting duly called for such purpose.

(c) The Board of Directors may fix the annual assessment in an amount not in excess of the maximum, as herein provided.

Section 4. Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the