,. ..

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EXZXIBIT "A"

ARTICLES OF I N C O R P O ~ T I O N OF TBE CORPORAICION - *

f sj 037/20464/000/~09O/ca~af ina 049/097 01-04-89

Description: Orange, CA Document-Year. DocID 1989.143967 Page :. 82 of 122 Order: 13 Comment:

89-143!%( -,. . t .e.- *

I

. '

C :ORIJ0I3.4TIOS I>I\'lSION

I, MARCH FONG ECJ, Secretary of State of the State of California. hereby certify:

IN WITNESS WHEREOF, I execute this cerhrhEcate and &u the Great Seal of the State of California this

JAN 9 1989

! Order: 13 Comment:

I i Description: Orange, CP Document-Year. DocID 1989.143967 Page : 83 o f 122

< . " . BRTICLES OF INCORPORATION i c 89 Lw

OF - CASAFINA MAINTENANCE CORPORA'PXON

WtCtl FlNG Sccrttaq 01 Slah 4- w

ONE: The name of this corporation ("Corporation" w h e r e i n ) is CASAFXNA MAINTENANCE CORPORATION.

-4

TWO: This corporation is a nonproi'it mutual b e n e f i t corporation organized under t he Ncnprof'it Mutual Bexaef it cozrporation Law. The purpose of this oorporation is to engage i n azy lawful ac t o r ac t iv i ty f o r which a corpcrration may be organized under such law.

THREE: T h e Corporation's i n i t i a l aqent for service of process is Brian V. Norkaitis, whose business addrass is 19 Corporate Plaza, Newport Beach, California 92660. - .. .

FOUR: The Corp~r€itiOn sha l l have and exercise any and al l powers, r i g h t s and privileges which a co rpora t i on organized under the Nonprofit Mutual Bvnef it Corporati on Law m a y now o r hereafter have o r exercise, provided t h a t t he Corporat ion shal l %at, except t o an insubs tan t ia l degree, engage i n any act i l ' i t ies o r exercise asly powers t h a t a r e not i n furtherance of t h e following purposes of t h e Corporation:

[a) -20 bring about c iv ic bet terments and s o c i a l improvements by providing for the preservat ion, management, maintenance and care of the a rch i t ec tu re and appearance of a resident ial condominium p ro jec t known as C a s a f i n a ("Projectu) , located in the unincorporated area of Orange County, California.

(b) To promote the common good, heal th , s a f e t y and general welfare of a l l the res idents within the P r o 3 ect .

(c) To exercise a l l of the powers and prgvileggs and ta perform a l l of the duties ana obligations ol: tb8 Corporation arisirig f r o m that cer ta in Declaration of Cbvenants, Conditions arid R'estrrictions and Rese:eiration of E a s e m e n t s for Casafina (the 11Declaration18) recoxded or to be recorded with the Orange County Recorder and appl icable to the Projec t , as such Declaration may be amended f r o m time t o t i m e .

FIVE: The classes of Membership and the voting and o t h e r r ights and privileges of Members shalX be a s se t f o r t h i n =e Bylaws. So long as there are two czlasses of Membership, amendment of these Art ic les of I n c o ~ ~ o r a t i o n s h a l l require the assent (by vote o r written consent) of (i) a bare majority of the Board of Directors of the Corporation, and (ii) Members representing seventy-five percent (75%) or m o r e of t h e voting power of each c l a s s of Members, A f t e r

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"..- .... . - 1 - 1 4 . " " . . -w...r- -l.r--O I..C.- .c..-,*.. - _.*.. " * -_ ." ... "#...I- . -. .- .-.,.. ..I& . . . ." . . .-. " ...,. #

conversion of &&e Class B Membership t o C l a s s A, Membership, amendment of these Artrfclea of Incorporation shall require the assent (by vote or w r i t t e n consent) of (i) a bare majo11.ty oe the B a d of Directors oj? the Corpo~ration, (ii) seventy-five percant (758) or more of the total voting power of the Members, and (iii) Members represenking seventy-five percent (75%) or more of the voting power of khe Members other than the Subdivider of the Project (18DecLarant11) .

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L I

EOIIBXT "B"

BYLAWS OF THE CORPORATION

f s j 037/20464/OOO/OC~9O/eaaaf ina 049/097 03-04-89

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BYLAWS

OF

CASAFINA lCdAINTENANCE CORPORATION

P s j 037/20464/000/0080/casaf ina 0871049 01-12-89

Description: Orange, (=A Document-Year. DocID 1989.143967 Page: 87 o f 122 Order: 13 Comment :

FOR BYLAWS

CF

CASAF INA MAINTENANCE CORPOT(ATI0N

DESCRIPTION PAGE NO . ........................ . 1 Plan of CondornZnium Ownership ., 3.

......... 1.1. Name ................................ .., 1 1 .2 . Applfcation ................................ , 1 2 . 3 . Mean5 ng of Terms ............................... 1

2 . Voting by Carporation Membershfp ....................... 1 2.1. vot ins l i gh t s .................................. L . . .......................... 2.2 Majority nf Q~orutG ..., 2 2 . 3 . Quorum. ........................................ 2 2 .4 . Proxies ........................................ 3

......... 3 . Administration ............................. .., 3

................... Corporation Responsibil it ies 3 .................... Place of Meetings of Members 3 ...................... Annual Meetings of Members 3 ..................... Special Meetings of Members 4 .................. Notice of lileetings to Members 4 Ad$ ourned Meetings ............................. 5 . Order of Business .................... ....... ,. 5 Action Without Meeting ........................ 5 ........................... Consent of Absentees 6 ................. Minutes. Presumption of Notice 6

4 . Board of Directors ....................... ... ........... 6 ....................... 4.1. Number and QuaLif ication 6

4 .2 . Powers and Duties .............................. 7 ...................... 4 . 3 . SpeciaL Powers and Duties 7 4.4. Hanagernent Ageac ........................ ,. .... I1 4.5 . E L e c t f on and Term of O f f i c e ................... il 4 . 6 . 8ooks. Audit .................................. 13 4 .7 . Vacancies ...................................... 16 4.8. Rearoval of Directors ........................... 16 4- 9 . 0rganizat.f on Meeting of Board .................. 17 4.10. Regular Meetings of Board ..................... 17 4.11. Special Meetings of Board ..................... 17 4.12. Waiver of Notice. ............................. 18 4 . 1 3 . A c t i d = Without Meetirrg ........................ 18

Description : Orange. CA Document.Year . DocID 1989.143967 Page: 88 of 122 Order: 13 Comment:

89-14396r . < . .+? .......... -> ..*.**v*..-.a=..-*.,-. 7- a. . . . . . . . . . . . . . . . . . . . . . . . . . . a . ............ ... P" .'." " ? ? ABLE. OF CONTENTS {Cantinrlied) ?I

- , . DESCRIPTXON --.- CU.,-.. r . . . . PAGE NO . . *

. 4.14 Quorum and Adjounaraent ........................ 18 4.15 . Committees 19 .................................... ..... 5 . O f f i c s r a .................................. ....-.. 19

5.1. Designation 19 .................................... . S 2 . Elect ion of Officers ........................... 19 5.3 . Removal of Officers 19 ............................ 5.4. Compensation 20 ................................... 5.5 . President 20 ...................................... 5.6. Vice President 20 .................................. 5.7. Secretary 21 ...................................... 5 . 8 . Treasurer 21 ......................................

6 . Obligations of the Members ............................ 22

6 . r . Xaa6ssmiitnts ...... i. 22 ............................. 6.2. Maintenance and Repair ......................... 22

7 . Amendments to Bylaws 22 .................................. 8 . Mortgagees 23 ............................................

. 8 .1 Notice to Corporation .......................... 23 8.2. Natfce o f Unpaid Assessments. .................. 23

. 9 Conflicting Provisions ................................ 23

10 . Xndemif ication of Directors and Officers ............ 24

11 . Miscellaneous 24 ........................................ 11.1. Checks. Drafts and Docments .................. 24 11.2. Execution of Documents ........................ 24 11.3. Snspection of Articles and Bylaws ............. 24 11 .4 . Biacal Year 24 ................................... 11.5. Hemberahip Register ................. , .......... 24

12 . Notice and Hearing Procedure .......................... 25

L2.1. S%spension of Privileges ...................... 25 12.2. Written Complaint ............................. 26 12.3. Notice of Hearing ............a,......m........ 27 12.4. Hearing ....................................... 27

CERTIFICATE OF SECPXTARY .................................. 28

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D e s c r i p t i o n : O r a n g e . CA D o c u m e n t . Y e a r . D o c I D 1 9 8 9 . 1 4 3 9 6 7 P a g e : 89 o f 122 . . . . O r d e r : 13 C o m m e n t :

- -- -

BYLAWS

OF - CASAFINA MA XNTENANCE CORPORATION

ARTICLE I

1. Plan o f Condominium Ownership.

1.1. Name. The name of t h e COrporation is CASAFINA MAINTENAlYCE CORPORATION, hereinaEter ref erred t o as t he '*Coq?oration. Tlie prancipal office 0,' the Corporation aha l l be located i n Orange County, California,

2 A Ligation. !he provihrons ofP&ese slaws a r e app~icable t o the res ident ia l condominium p ro jec t known as Casaf ina, located in the County of Orange, Cal i fornia . A l l present and future Owners ar,d t h e i r tenants, fu tu re tenants, employees, and any other person who might use the f ac i l i t i e s of the Project i n any manner, a r e subject t o t h e regulations set for th in t h e Bylaws and in the Declaration of Covenants, Conditions arnd Restr ic t ions and Reservation of Easements f o r Caoafina ( t h e "Declaration" herein) Recorded o r t o be Recorded i n the Off ic ia l ]Records of Orange C m t y and applicable t o the Project . The mere acquis i t ion o r rental of any Condominium in t h e Project or the mere ac t of occupancy of any Condominium w i l l s ignify t h a t these Bylaws a r e accepted, r a t i f i e d , and w i l l be complied with.

1.3. Meaning of Terms. Unless otherwise specif icaLly ~ rov ided herein, the capi tal ized terms -h these ~ y l a w s shall have the same meanings as a r e given t o such t e r m s i n the Declaration.

ARTICLE I1

2. Voting by Corporation members hi^.

2.1. Voting Rights. The Corporation shall have two ( 2 ) classes of voting Membership, as further provided i n t h e Declaration.

Class A. Class A Members ahall be those Owners with the exception of Declarant fo r 1 5 0 long a s there exis ts a Class B Membership. C1as:r A Members sha l l be e n t i t l e d t o one (1) vote f o r each Condominium owned which is subf ecf t o assessment, as frrr t he r provided in the Declaration.

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Claae 8. The Class B Member rhrrL!. bz Declarant. The Claas B Remher sha l l be e n t i t l e d f a

:w.. - - . ,f;hree,(3),ratqe Earteach, Condominf,~,o~med+y ...-- . .. . - .- . . -- =.= -:+; beclarynt, provided: @,fat! the laas as & Membersthip, s h a l l cease and be converted t o Class A Membership immedisrtely upon the f i r s t t o occur oE the -.. foiLowing events: . -

( 2 ) The second anniversary of that origins1 iasuance of the most recently issued Fipal Subdivision Public Report f o r a Phase of Development; o r

(21 The fourth aunfversary of the original issuance of the Final Subdivi- sion Public Report fo r Phase 1; o r

(3) The seventh anniversary of the Recordation of the Ueclaration.

Except as provided i n Section 14.2 of t he DeclaratZon and Sect ion 4.8 of these Bylaws, as long as there e x i s t s a Class B Membership, any provision of these Bylaws which

., e x p r e ~ s l y requires a Vo'Ce b i W9ttefi conseiiY of a sp&cSfTied percentage of the voting power of the Corporation before ac t ion may be undertaken (i. e. , other than actions requi r ing merely *he vote or m i t t e n consent of a majority of a quorum) s h a l l require the approval of such specified percentage oE the voting power of each cLass of Membership. Except as provided i n Section 14.2 of the Declaration and S e c t ion 4.8 of these Bylaws, upon termination of the Class B IMembership, any provision of these Byl~ws which expressly requires a vote o r wr i t t en consent of Owners representing a spec i f ied percentage of the voting power o f the Corporation before ac t ion may be undertaken shal: require the vote o r wr i t t en consent of owners representing such specified percentage o f both t h e t a t a l voting power of the Corporation and the vot ing power of the Corporation residing in Owners other than DecLarant.

2.2. Majority of Quorum. Unless oUherwise expressly prcvided i n these Bylaws o r t h e Declaration, any action iuhiah may be taken by the Corporaeion may be taken by-a majority of 8 -&orurn of the ~ e m l ~ e r s - a f the Corporation.

2.3. &uorum. E x c ~ p t a s otherwise provided in these Bylaws, the presence i n person o r by proxy of a t l ea s t a majority of the vot ing power of the Membership of the Corporation sha l l cons t i t u t e a quorum of the Membership. The Members present at a duly ca l l ed o r held meeting a t which a quorum is present may

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. ,- . crsy&t;imf t o dn bpsiness, -11 adj ~ u z z m e ~ t a notWith~+&ndhg t h e withdrawal of enough Members t o leave l e s s than a quotum, i f any action taken (other than adjournment) is approved by at l e a s t a majority of the Members required to const i tute a quorrrm.

2.4. Proxies. Votes may be c a s t i n person or by groxy aad a l l proxies must be i n writing. Every proxy sha l l be revocable and sha l l automatically cease a f t e r completion of the meeting f o r which the proxy was f i l ed . Any form of proxy o r written ba l lo t d i s t r ibu ted by any person t o the Members of t h e Corporation s h a l l afford the opportunity t o s p e c i f y a choice Between alproval and disapproval of each m a t t e r o r group cLf matters t o be acted upon, except it sha l l n o t be mandatory tha t a caudidate for e lec t ion t o the Board be named i n the proxy or writ-cen ba l lo t . The proxy or w r i t t e n b a l l o t shal l provide Ulat, when me Memher specifies. a cho- the vote s h a h . be c a s t in accordance with t h a t choice. The proxy s h a l l a l so ideritify the person o r persons authorized t o exercise the proxy and the length of time it w i l l be val id .

ARTICLE IIX

3. Administration.

3.1. Corporation Responsibi l i t ies . In accordance with t h e provisions o f t h e Declaration, the Corporation sha l l have the respons ib i l i ty of admitristering t h e Property, approving the Sudget, es tabl ishing and col lec t ing a l l assessments appl icable t o t he Property, and arranging for overal l archi tectural control of the Proberty.

3.2. Place of Meetings af Members. I

Meetings of t h e EIzmbers shal l be held on the Property, or such other su i t ab l e place as proximate there to as practicabLe, i n Orange County, convenient t o the Owners, as inay be designated 1byvt%e ~ o a g d o f Dfrectors. ~

3.3. Annual ~ e e t i n g s of Members. The first annual meeting of Members s h a l l be held within for ty-f ive (45) days a f t e r Close of Escrow f o r the sald of f i f ty-one percent (51%) of the Condominiums i n Phase 1 o r within s i x (6) months a f t e r the Close of Escrow fo r the saLe of the f i r s t Condominium i n Phase 1, whichever occurs qirst. Thereafter, t h e annual meetings of t h e Members sha l l be held on o r about the anniversary date of t h e f i r s t annual mdeting. A t each annual meeting there s h a l l be e lec ted by ballot; of t he Members a Board of Dfrectors of the Corporation, ir/ accordance w i t h t h e requirements o f Ar t ic le I V , Section 4.5 of these Bylaws. The Members may a l s o t ransact such other

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busfnqas af the C~rparation as.. may. properly come hefare '~oela. Each f i r s t Mortgagee of a Condominium in the Project mky designate a representat ive t o attend a l l annual meetings o f t he Members.

I 3.4. S ae i a l Meetin s of Members.

I t s h a l l be the d%y of the B a e d t o c a l l a wecia: meedins of the Members, a s d i r ec t ed by resolution of a majority o f - a quorum of the Board of D i rec to r s , by request of the Pre i d e n t of t h e Corporation or upon r ece ip t by the Secretary of 1

a f t e r adoption ef such r e s o l u t i o n or o r pet i t ion. No business s h a l l be transacted a t a specqal meeting except as s t a t e d i n the notice. Each f i r s t Mortgagee of a Condominium i n the Pro jec t may designate a representative t o atte-?d a l l special meetings of the M e

3.5. Notice of Meetin s t o Members. I I t s h a l l be the dcty of the Secr%ar.ry t o send a notice each annual or special meeting by f i r s t - c l a s s mail, a t ? e a s t t en (10) but not more than t h i r t y (30) days prior t o su h meeting, stating the pu=posc thereof as well as the day1 hour and place where it is to be he ld , t o eaca Member of rec rd. and t o each f i r s t Mortgagee of a Condominium. whlsh Mor$agee has f i l e d a written r eques t f o r notice with the ~ecretady. The notice may s e t f o r t h t i m e 1 i m i t s fo r speakers and 1 nominating procedures for t h e meeting. The notice of ady meeting a t which Direc tors a r e t o be elected shall incldde the names of a11 those who a r e nominees a t the time the1 not ice i s given t o the Members. The mailing of a notice, postage prepaid, i n the m a n n e r prcrvirled i n this section! sha l l be consider*not%ce served, forty-efght (48) hou#s a f t e r said notice has been deposited in a regular depository of t h e United States m a i l . Such notice sha l l be posted I i n a conspicuous place on the Common Property, and such notice s h a l l be deemed served upon in Member upon posting i f no 1 address for such Member has been then furnished the I

Secretary. Tbe Board o f Directors may f i x a date i n tht fu tu re as a record date f o r t h e determinatf on of the Members e n t i t l e d t o notice of irny meeting of Members. The recokd date so fixed sha l l be not l e s s than t en ( P O ) days nor @e than s ix ty (60) days p r i o r t o t h e date of t h e meeting. If the Board does not f i x a record date for not ice to Memb~rs, the record date sha l l be t h e c lose of business on the I business day preceding the day on which notice is given,

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Only M e m b e r s who on the record date for notice of t h e meeting - &ee are .m-.e"t.G4T entitled ii6twia-sie&z-d3.iiij. t o vote thereat , s&all ij.tt$.-b2e-=-*d2- be en t i t l ed br t o i.z.-u---a--o n o t i c e of . 8embership-certificates on ehe gooks of the ~ o r p o r a t i o d a f t e r the record date. In addition, the record date f o r notice of the meeting s h a l l be the record date fo r determining t h e Members e n t i t l e d t o vote ah trhe meeting.

3.6. Adjourned Meetings. If any meeting of Members cannot be organized because a quorum i s not present, a majority of the Members who a r e present, e i t h e r in person or by proxy, may adjourn t h e , meeting t o a time not l e s s than f ive ( 5 ) days nor more t h a n t h i r t y (30) days from t h e time the original meeting wag called, a t which meeting the quorum requirement ahszlL Us t he presence in person or by proxy of the Members hold* ae l ea s t twenty-f ive percent (25%) of the voting power of t h e Corporakion. Such an adjourned meeting may be held wlbbout notice thereof as .grovideq. i n t h i s A e i ~ l e III, prov4ded t h a t notice i s given by announcemeEt a t the meeting at which such adjournment is taken. I f , however, such an adjourned mseting i n a c t u a l l y attended, i n person or by proxy, by Members having l e a s than one-third (1/3rd) of the voting power of the Corporation, notwithstanding the presence of a quorum, no matter may be voted upon except such matters notfce of the general na ture of which was given pursuant to Section 3.5 hereof. No action by t he Members on any such matter shaLl be e f f ec t ive i f the votes cast in favor are fewer than t h e minimum number of votes required by the Restrfctions tu approve such an action.

3.7. Order of Business. I

The order of business a t a l l meetinas of the Members s h a l l be as fol lows : ( a ) r o l l c a l l t o determin* the voting powa(r represented a t t he meeting; (b) proof of notice of meeflng or waiver of notice; (c) reading of Minutes of preceding meeting; (d) reports of off icers ; (e ) reports of committees; ( f ) e l e c t i o n of inspector of elections ( a t annual meetihgs or sp&ci;rP meetings held f o r such purpose) : (g) e l ec t ton of Directors (at annual meetings o r special maetings h e l d f o r sucli pux?pose); (h) uxSinlshed business; a d (i) new business.

3.8. Action Without Meetin . Any ac t ion , which may be taken at a &ting of %he Members (except f o r the elect ion of Directors) may be taken without a meeting by m i t t e n ba l lo t of the Members. Ballots s h a l be s o l i c i t e d i n the same mannee as provided i n Section 3.$for the giving of notice of meetings of Members. Such solicL+at l o s s s h a l l specify ( a ) the number of responses~ needed t o meet t h e quorum requirements, (b) the percenthge of. approvals necessary t o approve the action, and (c) the t ime by which b a l l o t s must be received i n order t o be counted.

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The Eorm of written balLot shal l a f f o r d an opportunity t o ,- . appeify.,a &aL!az &tween approrral. and disappzmal of. each

mat t e r and sha l l provide tha t , where t h e Member specif ies a choice, the vote sha l l be cast i n accordance therewith. Rece ip t within the time period s p e c i f i e d i n the solicYtation o f a number of ba l lo t s which equals o r exceeds the quorum which would be required if the a c t i o n were taken at: a meeting and a number of approvals which squals o r exceeds t h e number 05 vo te s which would be required for approvaL i f the act ion were taken a t a meeting a t which the t o t a l number of potes cast w a s the same as the t o t a l number of bal lots cest s h a l l c o n s t i t u t e approval by written b a l l o t .

3 -9. Consent of Absentees. The t ransacUans of any meeting of Members, either anrrual or special, however cal led and noticed, s h a l l be as val id a s thoush had at a meeting dc3v held a f t e r reaular ca l l and n o t i c e , i f a quorum be-pres&t either in person or by proxy, and i f , either hefoxe o r a£ter tba meetfag., each of t$e Members net present in person or by proxy, signs a wr$t+en waiver of notice, or a consent t o t h e holding of such, meeting, or an approval of the Minutes thereoF. A l l quch waivers , consents or approvals shall be f i l e d w i t h t h e corpora te records or made a part o f the Minutes of thq Meeting.

3. LO. Minutes, Preswn~t i o n o f Not ice. I

X lnutes o r a s imilar record o f the proceedings of meetinss of Members, when signed by t h e p r e s i d e i t o r ~ecGetary, sha f i be presumed truthfulZy t o evidence the matters s e t forth t h e r e i n . A rec i ta t ion i n t he Minutes executed by the 1

Sec re t a ry that notice of the meeting was properly given s h a l l be prima f ac i e evidence t h a t such trotice was given. ,

ARTICLE IV

4. Board of Directors.

4.1. Number and Qualifi- ati ion. The a f f a i r s of the Corporation shall be governed and ridanaged by a Board of Directors composed of f i v e ( 5 ) Persons, leach of whom, except f o r those appointed and serving as f i r s t D i r e c t o r s , must e i t he r be an Owner or an ageat of Declhrant for so long a s Doclarant owns a Condominium i n the Progect o r i s e n t i t l e d to add any of the Annexable Territory t o t h e Proper ty without the vote of the Members pursuant t o the Declarat ion. The authorized number of Directors may bg changed by a duly adopted amendment t o the Bylaws. Directors and o f f i c e r s s h a l l not receive any s a l a r y or cornpensat: on f o r t h e i r se rv ices as Directors and o f f i c e r s unless such f compensation is approved by the v o t e o r wri t ten consent of Members representing a t l e a s t a m a j o r i t y of both the Class A

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and Glass B voting power; provided, however, t h a t ( 1 ) nothing herein contained -8ha.3.L b e construe& t o preclude any Dlrector - from serving the Corporation i n some other CPFacity and' receiving compensal-ion t h e r e f o r , and (2) any Director ok of f icer may b e reimbursed f o r his actual expenses incurred i n the perfolcmiurce of h i s duties. ~

G.2. Powers end Duties. m e Board of Directors has t h e Powers and du t i e s necesslrv for t he administration of t h e &fairs of the corporatioL k d may do a l l such a c t s and t h i r i g s as are not by Law o r by( these Bylaws directed t o be exercfsed and done by t h e Menbers. me Board of Directors s h a l l n o t en t e r into any contract gob a ter i i n excess o f one (I) year, without t h e vote or wriften consent of t h e Members repsesent ing at l e a s t a majority of the voting power of the Corporation, except f o r (1) a 1 contract with a public u t i l i t y company if W%e r a t e s charged for the materials o r s e r v i c e s a r e regulated by t h e California Public UMlib5es (Sarmnission; provided-, however, that th4 t t n n o f t he contract sha l l not exceed the shortest term for which the public u t i l i t y company w i l l contract at t he remlatdd ra te , (2) a management c o n t r a c t the terms of w h i c h confdrm to the requirements of Sect ion 4.4. hereof, ( 3 ) prepaid ca ualty

years' duration, provided t h a t t he policies permit sho S or Liabi l i ty insurance p o l i c i e s of not t o exceed three (,3)

television services and equipment or s a t e l l i t e dish tq cancellation by the Corporation, (4) agreements f o r cab\e

te levis ion services and equipment with terms not in axcdss of f i ve (5) years, provided t h a t Geclarant does not have a I dfrec t or indirect ownership in te res t in the supplier of' such services or equipment equal t o o r greater than ten percd t I" (10x1, and (5) agreements for sale or Lease of b u r g l a r alarm and f i r e alarm equipment, instaLlation and services with, terms not in excess of f i v e ( 5 ) years, provided t h a t I

DecLarant does not have a d i r e c t or indirect ownership in te res t i n the suppl ier of such services o r equipment e b a l to o r greatsr than t e n p ~ r c e n t (10%). 1

4.3. Special Powers and Duties. 1 W i t h a u t prejudice to auch foregoing general powers and dpties and auch powers and du t i e s as a r e set for th in the Declaration, t h e Board of Directors i s vested with, and ~ responsible for , the fol lowing pawers and duties: I

(a) The power and duty t o select, appoint, and remove a l l o f f i c e r s , agents and employees of the Corporation, t o p r e s c t i b e such powers and duties f o r them a s may be consistenf: with law, the Articles of Incotparat ion, t he Declaration and these Bylaws; t o f i x t h e i r compensation and t o require from them s e c u r i t y fo r fa i thfu l service when deemed advisable by the Board.

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(b) The power and duty t o conduct, manage and co_pnt,ro_L >the aLga4rs @.. ~ X ~ . & Z A B S ~ ~ of the, . ~ o r ~ o r a t r a , and tc r make and enforze such rulea an9 regula t ions theref o r consistent w i t h 1 aw, the A r t i c l e s of Incorporation, t h e Dcclarat ion and I "Lhese Bylaws, as the Board may deem necessary o r , advi sable.

I

(c) The power but not the duty t o change the p r i n c i p a l office for the transaction oC the bus iness of the Corporation from one locatfon t o a n o a e t w i t h i n the County OE Orange, as provided fn A r t i c l e I hereof; t o designate any place within s a i d County for the holding of any annual or s p e c f a l meeting or meetings of Members consistent with t h e provisions of Art ic le 111, Section 3.2 hereof; and to adopt and use a corporate seal and t o alter the form of such sea l from time t o t i m e , as +q g ~ e ~ t d , in Lta sale j udgmant, ma% deem. hest, provided that such sea l sha l l a t a l l times comply 1 with the provisions of law.

I

(d) With the approval of Members representing a t least two-thirds (213rds) of the voting power od t he Carporetion, the power but not M e duty t o 1 burrow money and to incur indebtecfness f o r the purposes of the Corporation, and t o cause t o be 1 executed and delivered therefar, i n the Corporation's name, promissory notes, bonds,

I debe~%ures , deeds of t ru s t , mortgages, pledges, hypothecaticns or other evidences of debt and ~ s e c u r i t i e s theref or. I

I

( e l The power and duty t o Pix and levy from time f o tlme Annual Assessments. S ~ e c i a l Assessments , and ~econstruct ion- ~ssessrnents upon 1 Members, as ~rovided i n the Declaration: t o f i x and levy from tihe to time in m y Fiscal year Capxtal r1proVement Asaessmeilts appl f c d l e to t h a t year only f o r capi ta l improvements; t o determine and f i x the due date for thi, &ayhent of such assessments, and the date upon which the same shall become de l fnquent ; provided, however, that such assessments shall be fixed and levied only t o provide f o r the payment of t h e Common Expenses of t h e Corporation and of taxes and assessments upon r e a l or personal property owled, leased, controlled o r occupied by the Corporation, o r for the payment of expenses f o r labor rendered or materfals or s u p p l i e s used and consumed, o r equipment and appliances furnished f o r the maintenance, improvement o r development of such property or f o r

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\~ . . t h e paymeat of any and all ohl iga t ions i n relati- theret'o; 'or p'erf drm3hg' ar-calr's Pn5' t-oVlie ' ' " " ' ' - performed aay of the purposes of the Corporation fo r the general benef i t and welfare of its Members, in accordance with the provisions of t h e Qeclaratiaa. The Board of Di rec tors ie hereby authorized to incur any and a l l such expenditures f o r any of t he foregoing purposes and to provide, o r cause t o be provided, adequate reserves for replacements a s it s h a l l deem t o be necessary o r advisable in the i n t e r ea t of the Corporation o r welfare o f its Members. The fwds CoLlected by the Boar. uE Directors from the Members, a t t r i b u t a l e t o replacement reserves, fox maintenance costs I which cannot normally be expected t o eccur on an annual basis and f o r capi ta l improvements, shal l i r t all times be held i n trust: f o r t h e Members. I

Disbursements from such t r u s t r e se rve fund shal l pe ma'aa only if~.acbordiin'de wTth fhY pkouis'ion$ or thy Declaration. Such Annual Assessments, Reconstruc- t i o n Assessments, Special Assessments and Capital Improvement Assessments shal l be f i x e d i n accord-' anee w i t h the provision& of the Declaration. Should any MeiaLer f a i l eo pay such assessments before delinquency, t he Board o f Direc tors i n i t s ( discret ion is authorized t o enforce the payment of such delinquent assessments as provided i n the Declaration. I

( f ) The power and duty t o enforce the provisions of t he Declaration, these bylaws or ~ other agreements of tke Corporation. I

(g) The power and duty t o c o n t r a c t for and 1

pay Eoz, as reasonably necessary, f i r e , casualty, blanket l i a b i l i t y , malicious mischief, vandalism, e r r o r s and omissions, liquor l i a b i l i t y and other insurance, insuring the Members, %he Corporation, the Board af D i r e c t r ~ ~ s and other fn teces ted parflee, in accordance with the prmf d o n s o f the Declaration, covering and protect f ng against such damages o r inJur iea as the Board deems advisabLe (which may include wsrltthout 1 imitat ion, medical expenses of persons injured on the Common Property).

(h) The power and duty to c o n t r a c t for and pay for maintenance, legal , accounting, gardening,l and common u t z l i t i e s services, arid f o r materf a l s 1 and supplies and other Common Expenses relat ing t CI t h e Common Property, and re la t ing t o t h e Units onLy to the extent not separately metered or charged, 1

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and t o employ personnel necessary for f he qe ra t iod of the Property, including lega l and accounting aervices, and t o contract for and pay f o r 1 Zmprovemente on the Common Property.

I (f) The power but n o t the duty t o delegate

its powers according t o law, and subject t o the approval of the Members, t o adopt these Bylaws.

(j) The power but not t he d u t y t o grant easements where necessary for u t i l i t y and other purposes over the Common Property for t h e benefit , of €he Kembers of the Corporation.

I (k) The power and duty t o adopt such Rules ~

and Regulations aa the Board may. deem necessary for l %&e management ob tho ~ r o j e c k , which ~ b l e s and Regulations shall become e f f e c t i v e and binding 1 after (I) they are adopted by a majority of the Board a t a meeting ca l led f o r t h a t purpose, or by tho written consent: o f Ule Board in accordance with Section 8.13, and (2) t h e y are posted i n a conspicuous place in t h e Common Property. Such I Rules and Regulations may concern, without l imitation, use of the Common Property; signs; collection and disposal of refuse; minimum I standards of property maintenance consistent w i t h the Declaration ancl the procedures of t h e 1 Architectural Committee; and any other matter within the jurisdiction o f t h e Corporation as provided in the Declaration; provided, however, 1 t ha t such Rules and Regu;ations sha l l be

I

enforceable only t c the extent t h a t they are I consietsnt with the Declaration, the Art ic les of 1 Incorporation and these S y L a w s , end the Rules and 1 Regulations may not ba used t o amend any of elid documents. 1

I (1) The power and duty to keep, or cause to

be kept, a complete record of a l l acts and corporate a f fa i r s of the Corporation and t o present a statement thereof t o the Members a t +he annual meeting of the Members and at any other time that such statement is requested by at least ten percent (10%) of the Members who are ent i t led t o vote.

(m) The power but not the duty t o appoint a Membership Committee composed of at l e a s t one (1) Director and a t least one (I) Corporation Member a t large. The Membership Committee shal l be responsible for contacting a l l purchasers of Condominiums in the P ro j ec t a s soon as any transfer I

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Membership Comatittee shalL further attempt to e s t a b l i s h i n i t i a l contact with a l l Members 'who a r e del inquent in the payment of any assessments, o r other charges due the Corporation.

(n) The power but not the duty t o sel1. p roper ty of the Corporation; provided, however, tha t the pr ior vote o r wrftten approval of the Members representing a t l e a s t a majority of t h e votirtg power of the Corporation must be obtained t o s e l l d u r i n g any Fiscal Year any property of t h e Corporation having an aggregate f a i r market value rtreater than five w r c e n t (5%) of the budgeted gross expenses of the Corporation f o r t h a t Fiscal Year.

4-4, Management Agent. . The Board o f Directors may engage a professional Manager f o r the Corporatfon a t a compensation established by the Board to perform such du t i e s and services as the Board sha l l authorize. The maximum term of any such contract: ("Management Contract") s h a l l be one (1) year, r u n l e s s a longer term i s approved e i t h e r by vote or wr i t ten a s s e s t of a majority of the voting power of the Corporation lor by the Veterans Administration or t he Federal Housing Administration, i n which case t h e maximum term of t h e Management Contract shall be three (3) years. Tlhe maximum term of a n y contract providing f o r Declarant ' s services to the Corporation or the Project shall a lso be three (3) years . Each such c o n t r a c t for Declarant's services and each Mar.agement: Contract shall provide for its termination by ei ther parky thereto without cause and without payyent o f a termination fee upon no more than ninety ( 9 0 ) days w r i t t e n notice to the other party.

4.5. Election and Term of Officq,

(a) Direcfro-rs s h e l l Ere elected by seclcet written b a l l o t of the Members. A t t h e f i r s t annual meeting of the Members, new Directors s h a l l be e l ec t ed by the Members as providad i n these Bylaws, and a 1 1 posi t ions on t h e Board of Directors sha l l be f f l l e d a t tha t election. In the event t h a t an annual meeting is not held, or the Board is not e l ec t ed thereat , the Board may be e lec ted a t any spec i a l meeting of t he Members held f o r t h a t purpose. Each Director s h a l l hold o f f i c e u n t i l h i s successor has been elected or un t i l h i s deaeh, res igna t ion , removal o r judicial adjudication of mental incompetence. The term of o f t i c e of the three ( 3 ) Directors receiving the highest nimber oE

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. . vo te s a t thel f i t s t dnnual meeting s'hall 'be ,two (2) years and the term oE o f f l ce o f the two ( 2 ) Directors receiving t h e next highest number of vo tes a t the Eirat annual rneetxng s h a l l be one (1) year.. Ak each annual meeting the rea f t e r , new Directors sha l l be e lec ted t o f i l l vacancies created by the death, resignation, removal, j ud i c i a l adjudication of mental incompetence or expirat ion of the terms of past Directors. !Che term of off ice of each Director elec%ed t o f i l l a vacancy created by the expiration o f the term of off ice of the respective pas t Di rec tor sha l l be two (2) years. The term of o f f i c e of each Director elected oi: appointed t o fill a vacaney created by Uhe resignation, death o r removal of h i s preducessor sha l l be tbe balance of t h e unserved term of his predecessor. Rny person serving as a Director may be'keeIecCed, Hn3 t he re slialf be no l fmitat ion on the number of terms du r ing which he may serve. Cumulative voting sha l l b e used in the e lec t ion of Directors f o r any e l e c t i o n i n which more than two (2) Directors are t o be selected, subjec t only t o the procedural prerequis i tes t o cumuLative voting in t he following sentence. A member may cumulate h i s votes for any candidate for the Board i f the candidate's name has been placed i n nomination prior t o t h e voting and i f such Member, o r any other Member, has g i v e n notice at the meeting pr ior t o t h e voting of such Member' 5 in ten t ion t o cumulate votes. If a Member cumulates his votes. such Memer may cas t a number of votes equal to the Member's share of the vo t ing power as s e t .forth i n t h e Declaration, mult ipl ied by the number of Directors to be elected.

(b) Notrithstandinq the foregoing, whenever (1) notice i a given f o r an election of Directors of the 5clard and (2) upon such ciaer %he Meinbe~s other ehan D e c l a r m do not have n s u f f i c i e n t percentage of the voting power of t he Corporation t o etlect at l e a s t one (1) Dltector through the foregoing cumuLative voting procedure. such n o t i c e sha l l also provide f o r the following special e l t c t i o n procedure. Election of ane { I ) Di rec tor shal l be apportioned ent i rely t o t h e Meubers o ther than Declarant. Any person s h a l l be an eligible! candidate f o r the special election upon receipt by the Secretary of a Declaration of Candidacy, signed by the candidate, a t any time pr ior to t he e lec t ion . Such election sha l l be by secret: ballot un less a majority of t h e Members o t h e r Chm Declarant determine otherwise. The persen

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receiving a majarfty' of the rcltes'cest by t3C Memhsra o a e r than Declarant s h a l l be elected a blembler of t he Board in a coequal capacity with a l l athex Director:. . The remaining Directors of the Board s h a l l be elected through the custotnary cumulative votizlg procedure outlined above.

4.6. Books, Audit. The following f inancia1 inf ormat ion shal l be prepared and dis t r ibuted by the Board t o a l l Members (and t o any escrow agent, Beneficiary, insurer and guarantor of a f i r s t Mortgage upon requost), regardless of the number of Members o r the amount of a s se t s of the CorporatLon:

(a) A pro forma opera t ing budget fo r each Fiscal Year conaisting of a t l e a s t the following infomat ion shall be d i s t r i b u t e d nat less than for ty-f i+e -57 aor in5i-r thitn i i d i y (64) days pr ior to t he beginning of t h e F i s c a l Year.

El) The estimated revenue and Common Expenses of t h e Corporation compvted on an accrua l basis.

( 2 1 The amount oZ the total cash reserves o f the Corporat i on currently avai lable for replacement o r major repa i r of t h e Common Property and for contingencies.

(3) An itemized estimate of Lbe remaining l i f e of , and t h e methods o f funding t o defray the c o s t s of repair and replacement of, or add i t i ons to, major components of t he Common Property and ithe f a c i l i t i e s fo r which t h e Corporation i : ~ responsible .

(4) A ge=eral statement: setking f o r t h t he procedures used by the Board in the calculat ion and establishment of reserves t o defray t h e c o s t s of repair and replacement of, o r additions to , major components of t h e Common Property and f a c i l i t i e s f o r which t h e Corporation f s responsible.

(b) A balance shee t as of an accountiag da t e whica is t h e last day of t h e month closest J l n time to s i x (6) months from the date of the first: C l o ~ o of Escrow f o r t he sa le of a Condominium in the Project and an operating statement for the period

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f ram the data. of .the. f i r s t . Close of Escrow t o the sa id accounting date, sha l l be distributed within siXty (60) days after the accounting date. Such operating s'latement shall include a schedule o f assessments received and receivable identified by the number of the U n i t and the name of the m e r assessed.

(c) A report cousisting of the following s h a l l be distribxfed within one hundred twenty (120) days a f t e r the close of the Fiscal Year.

(1) A balance sheet as of the end of the Fiscal Year;

( 2 ) An operating ( income ) st ateffienl for the Fiscal Year;

(3 ) A statement of changes i n f i n a n c i a l position f o r the Fiscal Year;

(4) Any information required t o be r epo r t ed under Section 8322 of the Cal if o t n i a Corporations Code;

(5) For any Fiscal Year in which the grass income t o the Corporation exceeds $75,000, a copy of a review of the annual report prepared i n accordance with general ly accepted accounting p r inc ip l e s by a licensee o f the Ca l i fo rn i a State Board of Accountancy; and

(6) A statement of the place where the nunes and addresses of the current nembers is located.

If the repo* r e f e r r ed t o above is not prepared by an independerk accountant, it sha l l be accompanied by the c e r t i f i c a e e of an authorized of f icer o f the Corgatration s t a t i n g that t h e statement was prepared f ro3 the books and records of the Corporation without independent audit or review. In l i e u of the distribution of the finw.cial statement r equ i r ed by S e e 5 on 4.6(a) above, the Board of Directera may elect: t o dis t r ibute 2 summary of the statement t o a l l its Members with a written no@ice t h a t the statement is available at: the business of f ice of the Corporation o r at another s u i t a b l e location within the Property and tha t cop ie s w i l l be provided upon request and a t t he expense of the Corporation. If any Member requests a copy of the f i nanc ia l statement requfred by Section 4.6(a9 t o be mailed t o the

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Member. the Corporation sha l l provide the copy t o the Member by f i r s t - c l a s s United S ta tes mail a t the expense of the Corporation sad delivered within f ive days. The written no t i ce t h a t is distributed to each of the Corporation Members s h a l l be rf l e a s t 10-point bold type on the f ron t gage o f th5 summary of the statement.

]In addif ion t o f i ~ a n r i a l statements, the Board shall annually d is t r ibu te within s i x t y (60) days p r i o r t o the beginning of the Fiscal Year a statement of t h e Corporation's po l i c i e s and practices in enforcing its remedies against Members for defaults i n the payment of Annual, Capital Improvement, Reconstmction and Specfal Assessments, including the recording and forecloafng of l i e n s against Members "ondomin$.ums.

Tha Raard shall gerfbm tha followting bn 'at lea&€ a quar te r ly basis: (1)-cause t o be completed and review a curren t reconciliation of the Corporation's operating accounts and reserve accounts, (2 ) review the current Fiscal Year's actval reserve revenues and expenses cornpared to the Budget f o r the then current Fiscal Year, (3) rev:iew the income and expense statement f o r the Corporat ionns operating and reserve accounts, and (4) review the m o s t current account statements prepared by the financial Instf %utf onu where the Corporatian maintains its operatzng and r e s e r v e accounts. The signatures of e i ther (i) two (2) D i rec to r s cE the Corporation, o r ( i i ) one Director and one o f f i c e r of the Corpora%ictn (who is not a lso a Director) s h a l l be re.yired f o r the withdrawal of money from the Corporation's reserve occounta. As Used i n t h i s paragraph, the term "reserve accounts" means monies t h a t ths Board baa fden t i f i ed from its Budget for. use t o defray the future repair and replacement o f , o r addlitions to, those majar components which the Corporatian is obligated t o mainta*.

The membership regis ter , ineluding mailing aiddresses ant2 telephone numbers, books of account: and m i n u * e s ctf meetings of the Owners. the board and Board committees shall& be made ava i lab le f o r binspection and copying by any Member, prospective purchaser of a Condominium i n the Project, and any Benef ic f ary, insurer, and guarantor of a f i r a ~ t Mortgage, or t h e i r duly appointed representatives a t the principal o f f i c e o f the Corporation or a t such other p l a c e within the Property as the Board may prescribe. The Board ahall e s t ab l i sh reasonable ru les with respect t o (I) notice to be given t o the custodian of the records by t h e Member desiring t o make the inspection, (2 ) hours and days of the week when such an inspection may be made and (3) payment of' the cost of reproducing copies of documents requested by a Member. Every Director sha l l have t he absolute r igh t a t a n y reasonable time to inspect a l l books, records and documents of the

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Corporation. and the physical p r o p e r t i e s owned lor controlled by the Corporation. A Director 's r i g h t of inspection shal l include t h e r igh t 50 make ex t rac ts and copies of documents.

4.7. Vacancies. Vacancies i n t h e Board of Directors caused by any reason other than the removal. of a Direc tor by a vote of the Hembets of the Corporation shall be f i l l e d by vote of the majority of the remaining Directors, even though they may ctmstitute l e s s than a quorum. Any vacancy caused by the removal of a Director may be f i l l ed by the vote of the majority of the remaining Directora but only w i t h the approval, by vaLe or wriCten consent, of a majority of *e voting power of e e Corpozation residing in Wembers other than Declarant. A Director may resign a t any time by g i v i n g noticet t o the Preside=%, the Secnetary o r t h e Board. Any D-ircecer who ceases t o be an Owner or an agent of Declarant shal l be deemed t o have resigned from the Board. A vacancy or vacancies sha1.L be deemed t o e x i s t i n case of death, res ignatian, removal or judicial adj udication of mental Incompetence of m y Director, or i n case t he Members f a i l to elect t h e f u l l number of authorized Directors a t any meeting a t which such election is t o take place. Any vacancy not f i l l e d by t h e Directors may be f i l l e d by vote of the Wembers a t the next annual meeting of the Members o r a t a special meeting CLE the Members ca l led for s u c h purpose.

4 .8 . Removhl of Di rec tors . A t anv recrular or sr~ecial meeting of t h e Members dulv called. any oGe &dividual h e c t o r o r t6e e n t i r e Board may 6e removed p r io r t o the expiration oE t h e i r terms of office with or without cause as follows: (i) for so long as fewer than f i f t y (50) Condominiums are included within the Project . by the vote af Members representing a majority o f the t o t a l voting power of the Corporation ( inc lud ing votes at t r ibutable to Declareat), and (ii) once f i f t y ( 5 0 ) or more C~ndominiums are included within the Project. by t h e vote of Members representing a majority of a quorum a f Wembers. Notwith- standing the foregoing, i f t he e n t i r e Board of Directors is not removed a s a grocp pursuant t o a s ing le vote, no individual Director shall be removed i f t h e number of votes cast against h i s removal would be s u P f i c i e n t t o elect such Director if voted fumulatively a t an e lec t ion a t which the same t o t a l number of votes were c a s t and t he en t i re number of Directors authorized a t the time of the DirectorQ s most recent e lec t ion were then being e l e c t e d . Any Director whose removal has been proposed by the Members sha l l be given a? opportunity to be heard a t the meetzng. I f any or a l l of me Directors a r e so removed a t a meeting, new Directors may be elected at: the same meeting. However, tiny Director who has been elected t o office so le ly by the votes of Members other than Declarant pursuant t o Section 4.5 of t h i s ArtIele XV may

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be removed from o f f i c e prior to the expiration o'f h i s term of of f ice only by t h e Vote of a t Least a simple majority of t he voting power r e a i d i n g i n Members other than Declarant.

4.9. Qrcranization Meetina of Board. The f i r s t regular {"organization") meeting of a newly elected Board of Directors s h a l l be held within ten (10) days of election of the Board, a t such place as sha l l be fixed and announced by t h e Di rec to r s a t the meeting a t w h i c h such Directors were e l e c t e d , for the purpose of organization, election of o f f i c e r s and the transaction of other business. No notice sha l l be necessary t o the newly elected Directors i n order lega-lly to cons t i tu te such meeting; prqvided t h a t (1) a majtority of the whole Board shal l be preseat when the time ar.d place a r e announced a t the membership meeting and (2) the meeting is held on the same day and a t trhe same place as the m e c e t b g - of trhe Hembers ae which t h e newly ronsti"tuMd Board was elected.

4.10. Reqular Neetings of Board. Regular meetings bf t h e Board of Directors sha l l be open t o a l l Members, p rovided tLat Members who are not Directors may not par t ic ipate in any deliberation or discussion a t such regular meetings unless expressly so authorized by a vote of a majority of a quorum of the Board of Directors. Regular meetings may be h e l d at such time and place withLn the Project as s h a l l be determined, from time t o t i m e , by a resolution adapted by a majority of a quorum of the Directorb; provided, however, that such meetings sha l l be held no leas EreguentLy than quarterly. Notice of the t i m e a76 place of reguLar meetings of t5e Board o f Ditectors shal l be given t o each Director, personally or by mail, telephone o r telegraph, arrd pos ted a t a prominent place o r places within the Common Property at least four (4) days! pr ior t o t h e date named f o r such meeting.

4.13. Special K e C t i n g s of Board. Sp=ial meetings oL: t h e Baard of ~ i r e c t o r g sha l l hE? open ts a l l Members, provided t h a t Members who are not Directors may not participate in any deliberation or discussion a t such specialmeetfngs, un le s s expressly so authorized by a vote of a majority of a quorum of the Board of Directors. Special meetings may be c a l l e d by thy Eresident or by any two (2) Directors upon four ( 4 ) days notice by f i r s t - c l a s s mail or seventy-two (72) h o u r s notice delivered personally o r by telephone or t e l e ~ ~ . - a p h . The notice shall s t a t e the time, place (as hereinabove provided) and the purpose of the meeting, and shall. be posted a t a prominent place or places within the Common Property i n the same manner a s prescribed f o r regular meetings.

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4.12. Waiver of Notice. Before o r a t any meeting of the Board of Directors, any Director may, i n writing, waive personal not ice of such meeting and such waiver shal l be deemed equivaler~t t o the giving of such no t i ce t o such Director. Attendanc:~ by a Director a t any meeting of the Board shall be a waiver by him of personal n o t i c e of the time and place thereof .. If a l l the Directors a r e present a t any meeting of the Board, no notice t o Directors s h a l l be required and any business nnay be transacted at such meeting. The transactions o f any meeting of the Board, however called and noticed or wherever held, sha l l be 9s v a l i d as though had a t a meeting duly held a f t e r regular c a l l and notice, i f (1) a quorum be present , (2) not ice t o t h e Members of such meeting was posted as provided i n Sections 4.10 and 4.11 of this Article IV, and (3) ei ther bsfTora or a f t e r W e meeting, each b f tha D i r e c t o ~ r s n o t present si.gns a written waiver of notice, a constent t o holding such meeting, or an apprvval of the Minul-es thereof. ALL such waSvers, consents and approvals shal l be f i l e d with the records o f t h e Corporation o r made a part of t h e Minutes of the meeting.

4.13, Action Yithout Meetin . Any action required or peruiitted t o beqaken by %he Board may be taken without a ineeting, i f a l l Directors individual ly or col lectfvely consent i n writing to such action. Such written consent o r consents shall be f i l e d with the Minutes of the proceedings of t h e Board. Such a-tion by writtela congent shal l have the same force and ef fec t as a unanimoas vote of such Direc tors . An explanation of any action t aken by unanimous w r f t t e n consent without a meeting shall be posted by the Board i n a prominent place or places i n the Common Property wi th in th ree (3) days a f t e r the written consents of a l l Directors have been obtained.

6-14. uorwn and A d j oununent . E X C ~ D ~ aa o t h r r w i k emressLy provided herein, at al l meetings of t h e Board bf ~ i r k ' t a r s , a majority of the Directors s h a l l coristitute a quorum for the t ransac t ion of business, and the ac t s of the majority of the Direc tors present at a m e e t i n g at which a quorum l a present s h a l l be the a c t s of t h e Board of Directors. If a t any meeting of the Board of Di rec tors , there i s l e s s than a quorum present, t h e majority of t h o s e present may adjourn the meeting from time t o time. A t any such adjourned meeting, any bus iness which might have been transacted a t the meeting aa o r i g i n a l l y cal led may be transacted without fur ther notice.

The Board of Director* may, with the approval of a majority of a quorum of the Directors. adjourn a meeting and reconvene i n exec~ztive session t o discuss and v o t e upon personnel matters, l i t igat ion i n which the Corporation is or

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may become involved and orders of business of a s imi la r aat~dre. Xhe nature of any and a l l business to he considered Ln executi.ve session s h a l l f i r s t be antrounced i n open session.

4.15. Committees. The Board of Directors, by resolution, may from time to t i m e designate such t o m i t t e e s as it sha l l d e s i r e , and may e s t d l i s h the purposes and powers cf e a c h such committee created. The resolut ion designating mci estahf i.shing the committee sha l l provide fo r t he appointment of its meabers, a s well as a chairman, ahal l s t a t e the purposes of t h e committee, 9 sba l l ptoyiae fo r rwarts, terminiatlon. and ot&er adminastrative matters a s deemed appropr ia te by t h e Borzd.

ARTICLE V

5. Officers.

5.1. Designation. The principal o f f i ce r s of the Corporation s h a l l be a President, a Vice President, a secretary, and a Treasurer, a l l of whom sha l l be elected by the Board of Directors. The Board of Directors may appoint an Ass is tan t Treasurer, and an Aesfstant Secretary, and such other o f f i c e r s as i n t h e i r judgment: may be necessary. Officers o t h e r t han the President need not be Directors. Any Petson may h o l d more than one off ice.

5.2. Election of Officers. The officers of t he Coruoration sha l l be e l ec t ed annuallv bv t k e Baard af Directors it the organization m e e t i n g of ea&h - new Board af Directors, and each oEEicer s h a l l hold his office' at t b e pleasure of t h e Board of D i r e c t o r s , u n t i l he sha l l resign o r be removed or oaerwise disquali .€ied to serve o r h i s successor sha l l be elected and q u a l g f i e d Ito serve.

5.3. Removal of Officers. Upon an aff irmatire vote of a majority of t h e enliire Board of ~ l r e c t o r s , any of f i ce r may be removed; e i t h e r wilzh o r without cause, and h i s successor elected a t any r e g u l a r meeting of t h e Board of Directors, or at any spec i a l meetin($ of t h e Board of Directors cal led f o r sucb purpose. Any o f f i c e r may resign a t any tfme by giving wri t ten n o t f e e to the Board o r t o the President or Secretary of the Corporation.. Any s~rch resignation sha l l take e f f ec t at t he d a t e of r ece ip t of sucb notice or a t any l a t e r time specified t h e r e i n ; and unless otherwise specified i n said notice, acceptance o f such resignation by t he Board sha l l not be necessary t:o make it effective.

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5.4. Compensst ion. O f Zicers, agents. and employees s h a l l receive such reasonable compensation for +Aeir se rv ices a s may be authorized or r a t i f i e d by the Board; provided, however, t h a t no officer sha l l receive any cornpeasation for services performed i n the conduct of t h e C ~ r p o r a t i o n ' s business unless such compensa- t i o n is approved by t h e vote or wr i t ten consent of Members representing a t l e a s t a majority of t h e voting power of +he Corporation; and provided fur ther , t h a t ( 5) nothing herein contained shall be construed t o preclude any off icer from servfng the Corporation i n some other capacity and receiving compensation theref or. and ( 2 ) any o f f i c e r may be reimbursed f o r h i s actual expenses incurred in t h e performance of h i s duties. ilppointment of any off icer , agent, or employee sha l l not of i t s e l f create contractual r i g h t s of compensation for services performed by such off icer , agent, or employee. Notwithstmdinq the fbregainq, mr o f f i ce r , employe* or d i rec tor aE Declarant o r any a f f i l i a t e of Declarant may receive any compensation.

5 . 5 . President. The President shal l be t h e chief executive off icer of the Corporation. H e s h a l l p res ide a t a l l meetings of the Corporation and of the Board of Directors. He sha l l have a l l of the general powers and dut ies which a re usually vested i n the off ice of the Pres ident of an Corporacion, includinq but not limited t o the power, subject t o t h e provisions of Artf c l e IV, Section 4.15, t o appoint committees from among the Members from time t o time as he may i n h is discretian decide is appropriate t o a s s i s t i n t h e conduct of the a f fa i r s of t h e Corporation. The President s h a l l , subject to the control of t h e Board of Directors, have general supervision, direct ion and control of t h e business of the Corporation. The Prenident shal l be ex of f i c io a member of a l l standing committees, end be s h a l l have such o ther powers and duties as may be prescrihod by the Board of Directors or these Bylaws of t&e Corporation. As further provided i n the Bylaws of SAMIXRC, the President shall be a DeLegate of SAlvlLAaC for Casafina Delegate Disf r i c t - The President sha l l furnish wri t ten ~ o ~ i r m a t i o n to fhe board of d i rec tors of SAKLhRC of the President's e lectzan, together with t h e o i f i c i a l address f o r t h e purpose of rece iv ing notices directed t o Delegates.

5.6. Vice President . The Vice President s h a l l t ake the rrlace of the President and perform his dut ies whenever the president sha l l be absent or disabled or whenever the President refuses or is unable to act. If neither the Pres ident nor t h e Vice President is able t o ac t , the Board of Direc tors sha l l appoinc some other member of t he Board t o do s o on an inter im basis. The Vice President s h a l l a lso perform such other dut ies as shall from time t o time be imposed upon him by t h e Board of Directors or

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. ' , . these Bylaws of the Corporation. The Vice Pres ident shal l perform all of the duties of the Delegate t o SAMLLARC, j.n the absence o r disability of the President t o perform such duties .

5.7. Secreta . me Secre ta ry s h a l l ltee'the Minutes of a l l nee t iu se of t h e Board of ~ i r k c r o r s and -%he Mlnutes of a l l meetings-of the Corporation a t t h e principal of f ice of the Cargasration o r a t such o t h e r p l ace as the Board of Directors may o , rd t r . The Secretary s h a l l keep the sea l of t h e Corporation. i n s a f e custody and s h a l l have charge of such books and papers a s the Board of Di rec to r s nay direc;ts and the Secretary shzlli, in general, perform al l of the dut ies incident t o tbhe o f f i c e of Secretary. The Secretary ahal l give, or cause t o be given, notices of meetings of the Members of the Corporation and of the Board of Directors required by eherse Byl-a118 o r by law t o be given. The Secretary sha l l maintain a recurd book of Owners, 1 f st i a g the names, mailing addresses and, telephone numbers o f Owners, as furnished t o the Corporation, and such books s h a l l be changed only at such time ss s a t i s f a c t o r y evidence o f a change in ownership of a Condominium is presented t o t h e Secretary. The Secretary aha l l perform such okher d u t i e s as may be prescribed by the Board of Directors or these Bylaws.

5.8. Treasuter . The Treasurer s h a l l be the chief f inazcial o f f i c e r of the Corporation and s h a l l have responsibili ty for Corporariols funds and s e c u r i t i e s and shall be responsible f o r keeping, or causing to be kept, f u l l and accurate accounts, tax records a d bus iness t ransact ions of the Corporation, inc luding accounts of a l l asaets, l i a b i l i t i e s , receipts amd disbursements i n books belonging t o the Co~pora t ion. The Treasurer shall be responsible f o r the deposit of a l l monies aud other va luable e f f e ~ t e irz the name, and ta the -edit, of the Cazporatf on in such d e p ~ s i t o r i e s as may from. time tu time he deai-ated by tte B c a r d nf D i r e c t a r s - The Treasurer sblL eisburse the Eunds of the Corporation as may be ordered b y the Board of Dlrecfors, in accordance with the Declaration, shaLl render t n the Presidentt and Direc$ors, upon request, an account of a l l of his transactions as Treasurer and of the financial condi t ions of ths Corporation, and s h a l l have such other powers and perform such other duties as m a y be prescribed by t h e Board of Directors or these Bylaws.

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ARTICLE V I

6 . Obligations of the Members.

(a) A l l Members a r e obl igated t o pay, in accordance with the provisions of the Declaration, a l l assessments imposed by ehe Corporation, t o meet a11 expenses of the Corporation.

(b) A l l delin-t assessments s h a l l be enforced, collected or foreclassd in t h e manner provided in the Declaration.

6.2 - Mntenance and. RepaSr . . (a) Every Member must perform prornptl,y, a t

his sole cost and expense, such maintenance and ze9aiz work within h i s own Residence, as required under the provisions of the Declaration. A s further provided i n the Declaration, a l l plans f o r a l terat ions and repair of s t r u c t u r a l o r u t i l i t y bearing portions of the buildings? housing the Units m u s t receive the p r i ~ r wr i t ten consent of the Axchitectural Cornittee. me Architectural Committee shall establ ish reasonable procedures for the granting of such approval, i n accordance with the Declaration.

(b) As further provided in the Declaration, each Member shal l reimburse t h e Corporation for any expenditures incurred in r epa i r ing o r replacing any portion of the Common Property, which l a damaged through the fault cf such Member o r his family, guests, tenants or invi tees . Such expenditures %hall inc3ude a11 court co+s and reasonable attorneys fees iccutred i n enforcing any provision of these Bylaws or the Declaration.

ARTICLE VII

7 . Amendments t o Bylaws. These Bylaws may be amended by the Corporation by the vaf t oc written-consent-of Members, r i p re sen t ing a t leasic (J I) a majority o f the votiag power o f each clsss of tke Members, and ( 2 ) a majority of the voting power of t he Corporation residing in members other than Declarant; provided t h a t t h e specified percentage of each c l a s s of the Members necessary t o amend a specific Section o r provis ion of these Bylaws sha l l not be l e s s man the percentage of affirmative votes prescribedl fo r action t o be taken under tha t Section or

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provision. In add i t j on t o the foregoing, any an~endment t o these Bylaws wnich ma te r i a l l y affects matters delineated i n Ar t ic le X I 1 or Sec t ion 13.2 of the Declaration nust be approved by me Benef ic ia r ies of that percentage crf f i r a t Mortgages on the Condominiums which is specified in the affected provision o f Ar t i c l e XI1 or Sectios f3.2 of the Declaration, respect ively; provided tha t , i f an amendment t o these Bylaws ma te r i a l l y a f fec ts matters delineated i n both Ar t ic le xII and Sec t ion 13.2 of the Declaration o r purports t o amend t h i s sentence, the amendment must be approved pursuant t o the requirements of both sa id Article XI1 and Section 13.2. So Long as there exist% a Class B Wembership, any amendment of these Bylaws shall. require the approval of VA and FBA. A d r a f t of t h e proposed amendment shcrll be submitted t o VA aad FHA f o r approval pr ior t o its approval by the Mmrbership. of Corporakioa,

ARTICLE VI IX

8. Mortgagees.

8.1. Notice t o Corporation. Every Member who mortqaqee h i s Condominium s h a l l notify %he ~ o r p o r a t i o n through t h e - ~ a n a q e r , or through the secretary in the event thrze is no Manager, of t h e name acd address of his Mortgagee; and the Corporation sha l l maintain such information i n R book e n t i t l e d "Mortgagees of Condominiums." Upon request, any such Member shal l likewise no t i fy the Corporation as to the release ox discharge of any such Mortgage.

8.2. Notice of Unpaid Assessments . The Board of Directors of the Corporation sha l l aC the request of a Mortgagee of a Condominium, report any unpaid assessments due f r o m the Unit Owner of such Condominium, in accordanc~r With the provieions of the DecLarakioar.

ARTICLE: IX

9. Conf l i c t i a q Provisions. In case any of: theae Bylaws confl ic t w i t h any provisions of the laws of * a S t a t e of California, such confl ic t ing Bylaws sha l l be nul l and void upon f inal court determination t o such effect, but a l l o ther Bylaws shall remah in f u l l force and ef fec t . In case of any confl ic t between the Articles of Incorporation and Ulese Bylaws, the Articles of Incorporation sha l l control^ aa2 in the case of any confl ic t between the Declaration and these Bylaws, the Declaratf on shall control.

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10. Ldemt i f i ca t ion of Directors and O f f i c e ? . Tho Board may authorize the Corporation t o pay expenses incurred by,-or to sa t i s fy a judgment or t h e - l e v i e d against, any present o r former Director, off icer , employeer, o r aqent of the Corporation t o the extent and under the c:Lrcumstances provided in t h e Declaration.

ARTICLE XI

11. Miscellaneous.

11.1. Checks, Drafts and Documents. A l l checks, d r a f t s o r other orders f o r payment oE money, notes o r other evidences of indebtedness,-issued in the name of or. payable= t o t h e Corporati.on, sha l l be signet1 or. endorsed by such person o r persons, and i n such manner as, from time t o time, s h a l l be determined by resoiution of t h t a Board of Directors, sub jec t t o the requirarnents of Section 4.6 hereof fo r withdrawing money from the Corporation's reserve accounts.

11.2. Execution of Documents. The Board of Direc to r s may authorize any off icer o r officers, agent o r agents, t o enter in to any contract o r execute any instrument i n the name and on behalf of the Corporation, and such authori ty may be general or confined t o spec:ific instances; atad unless so authorized by the Board o f Directors, no o,lf i c e r , agent, o r employee sha l l have any power o r au thor i ty t o bind the Corporation by any contract or engagement o r t o pledge i ts c red i t o r t o render :it l i ab l e fo r any purpoaie o r i n any amount.

11.3. Inspection OE Articles and Bylaws. The Corporation aka11 keep i n its of f ice for t h e transaction of buslnesia the or ig ina l or a copy of its Ar t i c l e s o f Inc~rgor ation imd these Bylaws as- amended gr otherwise a l te red t o date, c e r t i f i e d by the Secretary, whf q:h sha l l be open t o inspection by the Members and a l l Beneficiaries, insurers a d guarantors of f i r s t Mortgages.

11.4. F isca l Yeat. The Fiscal, Year of the Corporation shal l be determined by the Soard of Directors , and having been so determined, is subject t o change from time to time as the Soard of Directors sha l l determine.

11.5. Membership Register. The Corporation s h a l l keep and maintain i n its o f f i c e far the

* name, transaction o f bua%ness a- regi s t e r containing t h c mailing address and telephone number of each Memtaer. Termi-

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nafion or t ransfer of membership sha l l be recorded in the r eg i a t e r , together with the date on which membership ceased or was transferred, i n accordance wib4 the provisions of the Declaration.

ARTICLE: XI I

12. Notice and Hearinq Procedure.

12.1. Suspension of Privileges. In t h e event of aa alleged violation of the Declaration, t hese Bylaws or the Rules and Regulations of the: Corgorat i~n. and after written not ice of such-alleged failure: is helivered personally o r mailed t o the Mernbisr o r any agent of the Member ("respondent") alleged t o be in default i n the manner herefn provjsled, by f i r s t -c lass mail az by ce r tF f i eb m a U return r e c e i p t requested, or both, the Board of Directors shal l have the r ight , a f te r affording the rsepondent an opportunity f o r an appropriate hearing as hereinafter provided, and upon an affirmative vote of a majority of a l l Directors on the Board, t o take any one (1) o r more of the following actions: (1) levy a Special Assessment as provided i n t h e Declaration; (2 ) suspend o r condition the r igh t of said Member t o use any recreat ional f a c i l i t i e s owaed, operated o r maintained by t h e Corporation; (3) suspend said Member's vo t ing pr ivi leges as a Member, as fur ther provided in the Declaration; (4) enter upon a Residence t o make necessary repa i rs , or t.o perform maintenance which, according t o the Declaration, i o *he responsibi l i ty of t he Owner of such Residence; ctr (5) record a no t i ce of noncompliance encumbering the Condominium of t h e respondent. Any such suspension sha l l be f o r a period of nut more than t h i r t y (30) days fo r any noncontfnuinqt infract icn, bu t i n the case of a continuing infract ion ( incl.uding nonpayment of any assessment a f te r t h e same becomes delinquent) may be imposed for so long a s t h e violat ion continuerr. Tbe P d l u r e of the Board to enforce the Rules and Regulations of t h e Corporation, these Bylaws or tYle ~ec la ra t j i on sha l l not consEitute h waiver of tho r igh t t o enforce the same Ulereafter. The remedies s e t f:orth above and otherwise provided by these Bylaws s h a l l be cumulative and none sha l l be exclusive. However, any individual Member must exbliuat a l l available interns1 remedies of the Corporation prescribed by these Bylaws, o r by t he Rules and Regulations of t he Corporation, before t h a t Member may resor t t o a court of law f o r r e l i e f with respect to any alleged v io la t fon of t h e Declaration, these Bylaws o r +fie Rules and Regulations of the Corporation by another Membezr, provided t h a t the foregoing l imitat ion pertaining to exhausting administrative remedies sha l l not apply to the Board or t o any Member where the complaint alleges nonpayment o f Annual Assessments, Special Assessments, Capital Improvement Assessments o r Reconstruction Assessments.

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12.2. Written Complaint. A hearing t o determine whether a r igh t o r privil-ege of t h e respondent under the DecLaration o r these Bylaws; should be suspended or condftloned, or whether a Special Assessment should be levied, shell be i n i t i a t e d by t h e f i l k g of a writ ten Complaint by any M e m b e r or by any off icer o r member of the Board of Directors wi th the President of t he corporation o r other p r e s i d i n g member o f the Bozud. The Complaint s h a l l cons t i t u t e a wri t ten statement o f charges which shall set forth i n ord inary and concise language t h e acts o r omiesiona w i t h which the respondent: i s charged, and a ref erenae t o the spec i f i c provis ions of the DecLaration, t h e s e Bylaws or the Rules and Regulations of tho Corporation which t h e respondent is a l l e g e d t o have violated. A copy of t he Complaint shall be d e l i v e r e d t o the respondent in accordance .tthe.noCice procedures. set3 borth. i n the Declaration, together w i t h a statement which s h i ~ l l be subs tan t ia l ly in the following form:

"Unless a w r i t t e n request f o r a hearing signed by o r on behalf of the person named as respondent in the accom- panying Complaint is delivered or mailed t o the Board of Directors within f l f t ~ e n (15) days after t h e Complaint, the Board of Directors may proceed upon the Com- p l a i n t without a hearing, and you w i i % have tl-11~8 waived your r igh t t o a hearing. The request for a bearing may be made by delivering or m a i l i n g the enclosed Zorm en t i t l ed 'Notice of Defense' t o t he Board of Directors at t h e following address:

You may, but %ed nc f , be represGntedW ~.ounkel a t any or alL_s.t.aqes .8f fzhese p q s and addresses of w i t n e s s e s o r an o~DortunitY t o inspect any relevant writing5 or items ca file in connect ion with this matter in the possession, custody o r control of t h e Board of Directors , you may contact

The respondent shall be e n t i t l e d t o a hearing om the m e r i t s of the matter i f t;he Noeice of Defense is timely f i l e d v i a the Boardl of Directors. The respondent may f i l e a separate statement by way of mitigation, even i f he does not f i l e a Notice of Defense.

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12 :3. Notice of HearYn . The aoard ahal l serve a notica oEqhearing, as provided herein, on a l l parties a t least t en (I0)-days prior to t h e hearing, i f such hearing is requested by t h e respondent. me hearing s h a l l b e he ld na soanel: than thirty (30) days after the Complaint is raafled or delivered t o the respendent as provided i n Sec t ion 12.2 of this Ar t ic le XII. The n o t i c e to the respondent s h a l l be substantially in t h e following form but may include o t h e r information:

"You are hereby na t i f i ed t h a t a hearing w i l l be held before t h e Board of Df r e c t o r s of the Casafina Maintenance Carporatlen a t

on *e day of *

19-, a m h b u P o f 0

irpon t h e charges made in the Complaint served upon yort. You may be present at the hearing, may but need not be repreaentsd by counsal, may present any relevant evi- dence, and w i l l be given f u l l opportunity t o cross-examine a11 wirnesses t e s t i f y h g aga ins t you. You are en t i t l ed t o request t h e at teneance of witnesses and the pro- duct ion of books, documents o r other items by applying to t he Board of Ditee- t o r 8 of t h e Corporation."

12.4. Hearin . The heu ing s h a l l d d before the Board in executive session pursuant +o this notice affording the Member a rsasonable o m o r t u n i t v t o be heard. P r io r t o t h e e f f e c t i v e - ness c f any &-knction &ereunder, proof of notice, and t h e invitation t o b e heard sha l l be placed i n the minutes of the mee-cfnq. Such proof sha l l be deemed adequaOc if a copy of the notice C,ogether with a atatemen+, of the date and maxrner of delivery is en te red by the off icer or Director who mailed or delivered such not ice. The not ice requirement s h a l l be deemed aa t i s f i ed if a violator appears a t ?Ae meeting. The minutes of the meeting shall. contain a written statement of the reaufts of the hearing and the sanction, i f ( ~ y , Zmposed. No acrion aga ins t t h e Member arising from the a1Leged violation shall t a k e e f f ec t prior to the expiration o f ( a ) f i f teen ( 2 5 ) days after the Member's receipt of the n o t i c e of hearing, and (b) f i v e (5) days a f t e r the hearing requi red herein.

f s j 037/20464/000/00BO~casaf ina 087,/049 01-12-89

I I / Description: Orange, UI Document -Year. DocID 1989.143967 Page: 116 of 1221 1 Order: 13 Comment:

*-.. . - 3 ,

CERTIFICATE QF SECRETARY . .. ... .. ..2.. . ; - - . r . r s .. ... . *i . - - .i . . . . - , .

P, the undersigned, do hereby cert i fy that:

1. I am the. duly elftctad and acting Sacre tary of CASAFINA I M A I ~ C E CORFORAXTQN, a California nonprofit corporation ('Corporationn) ; and

2 . The foregoing Bylaws comprising 28 pagea including this page constitute t h e Bylaws of the Corporation duly adopted by Consent of Directors in Lieu of First Meeting dated , 1989.

M WZTNESS KKER?ZOF, I have hereunto subscribed my B h d and affixed the seal o f the Corporation this day of

1989. . -

I I Description: Orange,CA Document-Year.DocID 1989.143967 Page: 117 of 122 Order: 13 Comment:

I

RECORDING REQUESTED BY, AND - R G ~ R F ) E D * - ~ L - ~ ( 3 ~ > pi'< ip, *> **. * ..'. * -%A&. , < . q . . J . ,*

HCKITIPRICX, SACKSON, m C O & PEClfEXPAVGII [FSJ) - 4041 Macarbhur ~o~l*rd.i.- FiIth--Floor - -., --

Poet: OIl?j.ce Bax 2710

&a0 , MAR 2 1 1989 -'" ?%;: *',yj"&@Cp;ds >Fa f i <a*

~ranga County. Cal~lomra' ' ' 4 --- a . @ ~ c a r ~ .. - . . ._ ... . - .

DECLARATION OF COWENANTS, CONDXTIONS A N D

**..".* . . . r . BESTRICTIONS AND 3XESEBVATION OF EASEMENTS . , I - . . I . . - - . . a - . . . . FOR

fsj037/20464/000/009O/casaEina Revfeed 01-12-89

Il Description: Orange, CA Document-Year. DocID 1989.143967 Paue: 1 of 122 Order: 13 Comment:

. .'i5?rr?rr.w.T* ....Trr,... f.iSIllaCFI..' rrit*pp .- .. y7-.* ...... ..? . rmr ...rj: . .*.-rln,. ..,. ..*. .rr. . ..v.-,ur,..q.rur ...- ......-. v. .- ...: . . a:; $ .......... 5 .... ,. ... ' . . . - TABLE O F CO~&S '

- . . . FOX ....... s............. . . DECLARATION OF CO-S. CONDITIONS AND RES'lRICTIONS

AND RESERVATION OF EAs-S

FOR

CASAFI NA

1 . D e f i n i t i o n s .................................. ... . 2

A n n e x a b l e T e r r i t o r y ............................ 2 ........... A r c h i t e c t u r a l C o m m i t t e e o r Committee 2 A r t i c l e s ....................................... 2 A s s e s s m e n t . A n n u a l ............................. 3 ................ A s s e s s m e n t . C a p i t a l I m p r o v e m e n t 3 ...-...... ......*.. A q s ~ m ~ t r Rainstruc*ioh , 9 A s s e s s m e n t . Special ............................ 3 .................................... B e n e f i c i a r y 3 .................... B o a r d or B o a r d of D i r e c t o r s 4 B u d g e t ......................................... 4 ......................................... B y l a w s 4 C a s a f ina Delegate D i s t r i c t ..................... 4 ................................ C l o s e of Escrow 4 .................................... Common Area 4 ................................ Common E x p e n s e s 4 Common P r o p e r t y ................................ 5 ............................. C o m m u n i t y P r o p e r t y 5 C o n d o m i n i u m .................................... 5 C o n d o m i n i u m Plan .............................. 5 C o r p o r a t i o n .................................... 6 ........................... C o r p o r a t i o n P r o p e r t y 6 C o u n t y ..................................... ... . 6 D e c l a r a n t ...................................... 6 D e c l a r a t i o n .................................... 6 .................................. D e e d of Trust 7 ....................................... Delegate 7 DRKl ............................................ 7 ...................... ~ x c l u s i v e Use Common A r e a 7 Family ......................................... 7 FHA ............................................ 7 FWLIUIC .......................................... 7 Fiscal Y e a r .................................... 7 FNMA ........................................... 7 GNMA ........................................... 8 I m p r o v e m e n t s ................................... 8 M a i n t e n a n c e Funds .............................. 8 Manager ........................................ 8 M e n b e r . M e m b e r s h i p ............................. 8

f s j 037/20464/000/009O/caaaf ina 049/097 03-04-89

Description: ......... Document-Year.DocID 1989.143967 Page: 2 of 122 Order : 13 Comment :

1.39. Mortgage ....................................... 8 - . .... ...= 1740 ..-~ortgaqee. . ~ o r t g a g o r : 8 ................. ......... 1.41. Notice and Bearing ......................... .... 9 1.42. Notice of Addition ............................. 9 1.43. Owner .......................................... 9 1.$+%. Person ........................................ 9 ........................................ 1.45. Phase I 9 1.46. Phase of DeveZopment ........................... 9 ........................................ 1.47. P ro j ec t 9 1.48. Property ...................................... 10 ..................... 1.49. Record, F i l e , Recordation 10 ..................................... 1.50. Residence 10 .................................. 1.51. Res t r i c t i ons 10 1.52. Rules and RegxLations ......................... 1 0 ....................................... 1.53. SAFILRRC 10 ............... 1.54. SAMLARC Architectural Commfttee 10 1 . 55 . SAMLARC Declaration ......................... .. 10 1.56. Separate I n t e r e s t or Unit ..................... 10 1.W. VA ....... I ......... ; ........ ; .................. II .

2 . Casafina Maintenance Corporation ...................... 11 Organization of Corporation ................... 11 DutSes and Powers ............................. 11 .................................... Membership 12 Transfer ................................ 12 Classes of Membership ......................... 13 ................................. Voting Rights 13 Repair and Mafntenance of Common Property by t h e Corporation ............................... 15 Unsegregated Real Property Taxes .............. 16 Repair and Maintenance by Owners .............. 17 .................................. Use of Agent 18 ...................... EHA Regulatory Agreement 18

............................. 3 . Rzghcs in Common Property 18

.......................... 3.1. Corporation Easement 18 ................................. 3.2. Partltip .. 18 ......... 3.3. Mtmbere Easemen*: in Common Property 19 .................. 3.4. Extent of Members Easements 19 3.5. Delegation of Use ............................. 20 ................................. 3.6. Waiver of U s e 20 .............................. 3.7. Damage by Member 20

4 . Architectural Review Committee ........................ 21 4.1. Members of Committee .......................... 21 4.2. Review of Plans and Speci f ica t ions ............ 21 ..................... 4.3. Meetings of the Committee 23 4.4. No Waiver of Future Apprcvals ................. 24 4.5. Compensation of Members .................... .. . 24

Description: Orange. CA Docment.Year . DocID 1989.143967 Page: 3 o f 122 Order: 13 Comment:

. r p . . Q " l ' . r ~ ~ z ' 9 r * r * r * q K K K r S P - S r S . , . ; ) ~ . ~ ~ - i - ~ n . 3 ~ ~ . ~ ~ ~ . m r * ~ ~ . - . . ..I.- ..A,..... r.ur-,..*.-. . * . r . r r r * m ? p = . . r . i . * . .m* -+%- .... . . . . . . . a ' . . . 4.6'.3.' ~orrekCi'idn of.. defects; ....... ; ; ... , , .. : .... ... 24 4.7. Scope of Review ..................... .. ..... .., 25 ................ .. 4.8. Variances .................=.,. 26 - ".-. ..- .I - . . . . . . . . + . . . . . . . . . ........ .............

5 . Maintenance Funds and Assesements ..................... 26 ............ Personal Qblicjation of Assessments 26 .............. Maintenance Funds of Corporation 27

Purpose of Assessments ..................... .. . 27 .... Limitations on Annual AsSebsment Incraases 28 . . . . Annual Assessments/Commencement~C.;lLe0:tion 29 ............... Capltal Improvement Assessments 30 ...... D e l lnquency ....................... .... ... 30 Creation and Release of Lien ................... 31 ........................ Enforcement of Liens ... 32 ................... . Priority of Assessment Lien 32 ...... . Capital Contributions to the Corporation 33

................. 6 . Project: Easements ancl Bights of Entry 33 . .

6.1. ~asernkn'is ..................................... 33 6.2. Rights of Entry ........................ .. ... .., 35

................... . 7 ~eclarmt's Rights and Reservations 36

..................... . 8 Residenrce and Use Restrictions .,, 37

. 8.1. Single Family Residences .................... ,, 38 ............. 8.2. Parking and Vehicular Restrictions 38 8.3. Nuisances ...................................... 39 8.4. Signs .......................................... 40 8.5. Antennae ............................. ... ....... 40 8.6. Tnside and Outside Ins%ellations ............... 40 8 .7 . Aniical Regulations ............................ 41 e . 8. Business or Commercial Activity ............... 42 8.9. Rubbish Removal ................................ 42 ........................... 8.1C. Further Subdivision 42 8.11. Drainage ............................ ,.. ....... 43 8.12. Water Supply System ........................... 43 8.13. View Obstrui3tions ............................ 43 8.14. Bights of Handicapped ....................... .. 43

....... . ................................... 9 Insurance ... 44

................ Duty to Obtain Insurance; Types 44 ............ Waiver of Claim Against Corporation 45 .............. Right and Duty of Owners to Insure 45 .............. Notice of Expiration Requirements 45 Insurance Premiums ............................. 46 Trustee for Policies ............................ 46 Actions as Trustee ............................. 46 Annual Insurance Review ........................ 47 ................................. Required Waiver 47

f s j 037~2Q464~000/0CI9O/caaaf ina 049/049 01-12-89

D e s c r i p t i o n : O r a n g e . CA D o c u m e n t . Y e a r . D o c I D 1989.143967 P a g e : 4 o f 122 O r d e r : 13 C o m m e n t :

.................... . ." -* . . " .I . . 10.1. Reetoratiori. of the Property 48 1CTr2'6 "5'aI'P'"df -Prop&Ffy" -8iniI-ai'qlif t6' ~Sceitlijri 4d . ....... ............................... 10.3. Interior Damage 50 PB.4. Notice to Owrlera and Listed Mortgagees ........ 58

........................................ II . Eminent Domafn 50

11.1. Definitions . ................................... 50 11.2. Awards; Repair; Restoration and Replacement . . . 51 11.3. Owners I Awards ................................ 53 11.4. Relinquishment of Interest in Common Area ..... 53 11.5. Notice to Owners a ~ d Listed Mortgagees ........ 54 11.6. Condemnation of Corporation Property .......... 54

12- Right= of Mortgagees .................................. 54 ............................ 13 . Duration and Amendment .. . 58

. . 13.1. ~hraiiion ...................................... '58 ..................................... 13.2. Amendment 59 13.3. Protection of Declarant ....................... 61 13.4. Approval of Certain Actions by County .......... 62

14 . Enforcement of Certain Bonded Obligation ............. 63 14.1. Consaderation by Board of Directors ........... 63 14.2. consideration by the Members .................. 63

........................... 1.5 . General Provisions ... 63 ............................. Legal Proceedings 63

Violation of Restrictions ...................... 64 Severability ......................... .. .. ..... 64 Interpretation ....................... ... .. ... . 65 Mergers or Consolidations ..................... 65 Use of Recreational Faci l f t f es ................ 65 No Public Right or Dedication ................. 65 No Keptesentations or Warr A n t ies .............. 65 donliability and Indemilif icaeion .............. 66

I. Not ices ........................................ 68 .. Priorf ties and Inconsistencies ................ 68 16 . Annexaltion of Additional Property ..................... 69

16.1. Additions by DecLarant ........................ 69 16 .2 . Other Additions ............................... 69 16.3. Rights and O b l igations-Added Territory ........ 69 16.4. Notice of Addition of Territory ............... 70 16.5. Reciprocal Crcsa-Easements Between Pht~scs ..... 70 16 .6 . Deannexatf on .................................. 71

f sj037/20464/000/0090/casaf ina 049/049 01- 12-89

Description: Orange,.CA Document-Year.DocID 1989.143967 Page: 5 of 122 Order: 13 Comment:

EXHIBIT "At' - ARTICLES OF INCORPORATION OF THE CORPORATION

.-." v EXHIBIT "8" BYLAWS Dl? CORPORATTON

EXXIBIT "c" - DRAWSNGS DEPICTING EXCLUSIVE USE COMMON RREA PATXOS IN PH9SE 1

W I B f T "D" - LEGAL DESCRIPTION OF ANNZXABLE TERRITORY

EXHIBIT "E" - DRAWXNGS DEPICTIBG AND ASSIGNING EXCLUSIVE USE COWQN AREA UNCOVERED PAIlKING SPACES IN ESIBSE 1

1 Description: Orange,CA Document-Year.DocID 1989.143967 Page: 6 of 122 Order: 13 Comment:

"d - -li -.r*.v-*+*so+ *..I\ . n x r. 4*.-rrt ,r - <.$..*-XC"L..' , . ,..... . . nscaTtATtATroN OF C O V E N ~ ~ S , . CONL'XTIONS AND. RESTRI;CTICI~S,'

AND BESWVATPON OF ZiiSZ&SfTS FOR

TEiIS DECWIRATION i s made by TXE W I L L I A M LYON COMPANY, a cal! e o r n i a corporation < w ~ e c l a r a n t n ) .

A. IDeclarant. is the owner of cer tain r e a l grope-ty (alPhase :L") located i n unincorporated Orange County, ~ a l i f o r n i a , described as follows %

Lots 1, 3 and F of Tract No. 13364, as shown on a Subdivision Hap Filed on February 8, 1989, in Book 626, a t Pages 8 to ' 13, i%cXusive, af' Ki'sce-ITartetms Maps, in the Off ice of the Orange County Recorder.

B. Tt: is the des i re and intent ion of Declarant t o c r e a t e a candomfnium project as described i n Section 1351 ( f) of the Cal i fo rn i a Civi l Code and to subdivide the Proporky (as hereinaf tsr defined) into condomini we, as defined i n secf ion 783 of .Ule California C i v i l Code, and to hpoae mutcal ly benef ioial r e s t r i c t& ons under a general plan of improvement for the benefit of a1L +&e condominiums created pursuant to the Davf e-Sti rl ing Common I n t e r e s t Development Act.

a. Declarant hereby declares that a l l O f the Froparty is to be he ld , conveyed, hypothecated, encumbered, leased , rented, used, occu ied and improved subject t o the 1 imi t a t ions , restrfctione, reservations , r i gh t s , easements. aonbitioru3 ana covenants contained i n t h i s Declaratzion and the SAMLZhRC Declaration, a l l of which are declared and agreed t o be i n furtherance of a plan f o r t h e prcrtection, suhdiv is ionr maintenance, improve~mt and s a l e of a e P r o p a r t y f o r the purptrse af hnbancingj the value, des irabiXi ty and atrractFveness of f i e Erroperky. All provisions of this Declarat ion, including without l imitat ion the easements, uses, obl iga t ions , covenants, conditions and r e s t r i c t i o n s hereof, are hereby iarposed as equitable servituaes upon the Property. A l l of the 1 imitat ions, res t r ic t ions , r e se rva t ions , rights, easements, conditions and oovenants herein an& i n the SAMLmC Declaration shall run with and burden Che Property and s h a l l be binding on and f o r the benef i t of all of the Property and a l l Persons havlng or

fsj 037/20464/000/0090/~a~af ina 049/049 01-12-89

Description : Orange, CF1 Document-Year. DocID 1989.143967 Page: 17 of 122 Order: 13 Comment:

.= ff4Lz.: .".-*7ee~~+p.Ili*n*n1*-.yiX5~c-.-"-. . j - . r - - 7. . - ~ r . ~ + , r . ~ % , . r w:-. *... -.m .-.r.,=",rT - . . . . . ..-. .-'. * r . . .,- . . . - acsuiri'nri .'my -'Sight, : ~iil& o$ ' in te res t ii: th'e: Prope&Y, o r

any Part: thereof, aad t h e i r successive oaaers anti assigns. -'-. . The devel~opment sf. $he P r o p p ~ s y ,8hall. b,e co~qistenq~.yr$@

" ' -khde"ovkrall d$velopment pl-&,''i~ any, subtiiitt&d-t~ %~Y'WA and FHA.

D. D~eclarant, i ts successors. assigns and grantpes, covenant land agree t h a t the undivided interest in the Gammon Area, the membership i n the Corporation, any easements conveyed 'therewith and +he fee tr t le t o each respective Unit conveyed therewith sha l l not be separated or separately conveyed, and each such undivided interest , membership and easement rshall be deemed t o be conveyed or encumbered with its respective Unit even though t h e description ~ln t h e instrumenrt of conveyance or encumbrance may refer only t o t h e Unit; provided, however, t ha t t h i s restr ic t ion upon the severabi l i ty o f the component ineeree ts cf the Ccmdominfums s h a l l not extend beyond the period fo r which the right t o pa r t i t i on the Property is suspended in accordance with Swcf ion 4.259 off t he CEalifomAa, Civil, Code w d Vw! E~ovirnicms o f Articltr X hereof. Any conveyance by an Owner of a Condominitun, o r any portion thereof , shall be presumed to convey tho e n t i r e Condominium, together with a membership i n t h e @orpo~:at f on.

1. D o f i n i t ions. Unless oa~erwise expressly provided. the followir,ig words and phrases when used in t h i s Declaration shall have the - following specified meanings.

1.1. Annexable Territor . Ann~xable Terri tory sha l l mean thexrea l property described in Exhibi t 'ID" attached hereto and incorporated hererin by t h i s reference, a l l o r any portion of which may from time t o time be made s ~ ~ b j e c t t o this Declaration pursuant t o Airtiice XVI hereof .

1.2. Architec;tural Committee or Cc;nmit;tee. Architecttrra!. Committee o r Committee shall mean the A2chitectuval Review Corniftee c rea ted pursuaht t o Ar t ic le I V hereof .

1.3. Art ic les . Ar t ic les shal l mean the Articles of Incor~oration, o f the Corporatic~n, f i l e d o r t o be f i i e d i n the &ice of the Secretary of S t a t e of the State of California, a t r u e copy of whSch i s a~tteched hereto, marked Exhibit "A," as such Ar t ic les may be amended from time t o time.

f s j 037/20464,f000/0090/casaf ina 049/099 10-03-88

Descript ion: Orange, I- Document-Year. DocID 1989.143967 Page : 8 o f 122 Order: 13 Comment :

, . 1.4'. ~ s a e b ~ m e n t , . m u a i ; Annual Asseasment s h a l l mean a charge againat a par t icu lar

-- Ownsr, and .Us - C~ndomfnium, reereaentina. a .por$ian. o f the -- Common Exaensea which a re t o be said bG each Owner t o the corporati-m i n the manner and prbportiGns provided herein.

1.5. Assessment , Capital Improvement. Capctal rmpravement Asseasment shazl mean a charge which the ~ o a r d mav from time t o t i m e levy against each Owner and his ~ondominbn, representfng a p o s i o 6 of the cost t o the Corporation f o r i n s t a l l a t ion o r construction of any capi tal imp%ovements on any of the Common Property. Such charge sha l l be levied among a l l of the Condominiums in t h e Project in the same proporZions as are Annual Assessments.

1.6. Assessment, Re~onstructfon. Reconstruction Assessment sha l l mean a charge wh.ich the Board may from time Co time levy against a part icular Owner and his Condominixrm, representing a portion of the cost t o the CorporatScan fo r reconstruction. of any. Xmproaremenks. on any of the Common Property. Reconstruction Assessments s h a l l be levied among a l l o f the Owners and Weir Condominiums in the Project ZL'I the same proportions as the re la t ive :Lnterior square foot f l o c r areas o f the residential elements of t he Units ( a s such areas are depicted in the Condominium Plan or PXans f o r the Project) , expressed as percentages, and computed By dividing t h e i n t e r i o r square foot f l oo r area of the res ident ia l element of each Unit by the total, i n t e r i o r square foo t areas of t h e res ident ia l elements of all Units i n the Project.

1.7, Assessment, Special. Special Assessment s h a l l mean a charge against e part icular O k e r d i rec t ly a t t r i bu tab le to, or reimbursable by, the Owner, equal t o the cos t incurred by the Corporation f o r correct ive action performed pursuant t o the provlsiona of t h i s DecLaration, a+ a reasonable f ine or penalty assessed by the Board, plus i n t e re s t and other charges on such Special Assessments es provided for in t h i s Declaration. Special Assessmenes s h a l l no t include any l a t e payment pemaltles, i n t e r e s t ckargtecs or cos ts {includiag attorneys' fees ] incurred by the Corporation in the collection of Annual, Capital In~provement and Reconstmction Assessments.

1.8. Beneficiar . Beneficiary s h a l l mean a Mzrtgagee under a Mortgage or a ~ e n e f i c i a ry under a Deed o f Trust, as the case may be, and t h e assign.ees of such Mortgagee or Beneficiary .

f s j 037/20464/000/009O/casaf ina 049/099 10-03-88

Description : Orange, t=A Document-Year. DocID 1989.143967 Page : 9 of 122 Order: 13 Comment :

- , 3 -..,* -*..'..*..*-..c. ..., ' 5 . ' " . . - . . , * * . . - . . * - - i . * I . I -, . . * .

.. I . Board 0% ~ d a r d of. Directors. Board of Directors op Board s h a l l mean t h e Board of D i r e c t o r s

1.10. Budget. Budget s h a l l mean a wri t ten , itemized es t imate of the income and Common Emensea of t h e Corporation i n performing Its f u n c t i o n s und'er t h i s ~ e c l a r a t i o n , which Budget sha l l be prepared , ~ u r s u a n t to t h e Bylaws.

1.11. Bylaws. Bylaws s h a l l mean the Bylaws of t h e Corporation as a d o p t e d by khe Board i n i t i a l l v in t h e form of Exhibit "B" a t t ached hereto, as such ~ y i a w s may be amended from time t o time.

1.12. Casaf ina Delegate D i s t r i c t . c a s a f i n a :~ele~ate-eIe~ate D i s t r i c t [as d e f i n e d i n t h e SAMLARC Declaration) composed of the geographical area encompassed by Phase 1 and any p o r t i o n of t h e Annexable .Territory which is annexed t o t h e covered Proper ty ( a s defined in t h e SAM LA^ Declaration) and is within the jur isdic t ion of t h e Corporation.

1.13. Close of Escrow- Close of Escrow shal l mean the d a t e on which a deed i s Recorded conveying a Condominium t o a consumer pursuant t o a t r a n s a c t i ' o n requiring t h e issuance of a Final Subdivis ion Pub l i c Repor t by the DRE.

I. 14. Common Area. Common Anea s h a l l mean t h e e n t i r e Common I n t e r e s t Devel oprnemt , except the Separate I n t e r e s t s there in atld t h e Corporatijan Property. I n addit ion, "Common Area" s h a l l include, without l imi ta t ion, Ear maintenance purposes o f t h e Corporatilon, hu t net necessar i ly by way of f e e title, a l l gas, water and waste pipes, a l l sewers, a l l ducts, c h u t e s , condui t s , w i r e s and other u t i l i t y i n s t a l l a t i o n s of the Pro jec t I~mprovements wherever located (except the o u t lets thereor when located within t h e Uni ts) , t h e land upon which the Ppajebt Improvetmeats a r e loeaeed and t h e airrpce above the Fro j e ~ c t Improvemerrts, a l l bearing w a l l s , col~uuns, u n f i n i s h e d floors, the: roars, foundation s labs , p a t t y w a l l s , u t i l i t y wa l l s , foundations, p r i v a t e streets o r dxivewaya, walkways , common stairways, parking areas and landscaping on those areas of t h e Project which a r e not defined as a par t of t h e U n i t s .

L . IS. Common Expenses. Common Expenses sha l l mean those expenses f o r which the Corpora t i c~n is responsible uqder t h i s DecLaration, i n c l u d i n g the- a c t u a l and estimated c o s t s of : maintenance, manligement , opera t ion , r e p a i r and replacement of t h e Common Proper ty;

f s j 037/20464/000/0C)9O/c as af i n a 049/099 10-03-88

Description: Orange,. CA Document-Year. DocID 1989.143967 Page: 1 0 of 122 1 Order: 13 Comment :

.-- unpaid Specf al. -Assessments; Reconstruct ion asses smenta and Capital improvement Aseesaments; the coat of maintenance o f the recrslational f a c i l i t i e s on the Common Property; the coats of any anid a l l u t i l i t i e s metered to more than one Unit and other commonly metered charges for t h e Property; the cos ts of t r a s h collection and removal (as applicable): the cos t of maintenan~ce of c lustered mailboxes and address ident i f ica t ion s igns (as necessary) ; the costs of management and administration of t h e Corporation including, but no t l imited to , compensation paid by the Corporation t o managers, accountants, a t torneys and other employees; the cos t s of a l l gardening, secur i ty and other s e rv i ces benof i t i n g t h e Common Property; the c o s t s of f i r e , casua l ty and l i a b i l i t y insurance, workers ' compensation insurance, errors and omissions and d ~ r e c t o r , off icer and agent l i a b i l i t y insurance, and o ther insurance covering the Property and t he directors , o f f i ce r s and agents of the Corporation; t h e c a s t s b f bonding af the members of the B a a r d ; t a m s paid by Ch, Corporation, including any blanket t a x assessed against the Property; amounts paid by the Corporation f o r discharge of aily i i en or encumbrance levied aga ins t the Property, o r port ions thereof; and the costs of any other item ox i t e m s incurred by the Corporation, f o r any reason whatsoever i n connection with t h e Property, for the common benefi t of the Owners.

1.16. Common Property. Common P r o ~ e r t v s h a l l mean the C~nunon Area and the

1.17. Community Property, Community Property sha l l mean a l l real property ,and the ~mprovem~nta %hereon, owned i n fee, by easement o r leased from time t o t i m e by SAMLARC fur t h e common use and enjoyment of the Members of SAWLARC.

1.18, Condominium. Candaminim s h a l l mean an eseate in real property as defined i n Califosnia C iv i l Code Seetion 1351(f),-anh shkl l consis t of an undivided Eee simple ownership in te res t i n t h e Common Area in a Phase of Development, together with a separate ownership in te res t i n fee i n a Unit and a l l easements appurtenant thereto. Subject t o t h e provisions of Sectlon 11.4 hereof, t h e fract ional undivided fee simple i n t e r e s t appurtenant t o each Unit i n Phase 1 sha l l be an undivided ane-thirty-second (1/32) in te res t irr the Common Area located i n Lot 3 of Phase 1 t o be held by the Owners of Condominiums i n Lot 3 of Phase 1 as tenants i n common.

1.19. Condominium Plan. Condominium Plan sha l l mean the Recorded plan, as amended from time to t i m e , f o r a l l or s port ion of a Phase of

f sjO37/20464/000/0090/cas~f ina 849/099 10-03-88

Description : Orange, CA Documen t-Year. DocID 1989.143967 Page: 11 of 122 Order: 13 Comment:

.... Pgyelopaexrt, . c o k ~ i s t i t l g ~ of. (1) ir - dasccipcion or ewxey map oE th9 Phase of Development or port ion Ulsreor, v5icch shall1 r e f e r t o or show monumentation on the ground, (2) a three- dimensional description of the Phase of Development or portit-n thereof, one or more dimensions of which may extend f o r an indefinite distance upwards or downwards in suff icient d e t a i l t o identify the Common A r e a and each Separate Interest , and (3) a c e r t f i i c a t e consenting t o the recordation thereof signed and acknowledged by the record owner of fee t i t le t o the Phase of Development or portfon thereof, and by e i the r the t rustee or t h e Beneficiary of each Recorded Deed of Trust, and the Mortgagee of each recorded Mortgage encumbering the P h e of Development or portion thereof.

1.20. Corporation. Corporatf aln shal l mean CASAFINA MAINRZNANCE CORPORATION, a ~ a l x f o r n i a nonprofit corporation (formed pursuant t o t he NonprofLt . Mutual. B e n d i t Corpra tFon. Law oL t he State of . California), a s defined i n Section 1351Ca) of the California Civil Code, its successors and assigns. The Corporation is a "Subordinate Maintenance Corporakionu as defined in the SAMLARC Declaration.

1.21. Corporation Property. Corporatio,~ Property s h a l l mean a l l of the r ea l and personal property and Improvements t o which the Corporatioan shal l hold fee t i t le or over which the Corporation sha l l hold an easement fo r t h e common use and enjoyment of t he Members as provided herein. The Corporation Property located in Phase 1 shal l include Lots l and F of s a i d Tract *lo. 13364.

:L . az . c o ~ t y . County shall mean t h o dounty of Orange in the Sta t e of California,, and its various depaxtments, divisions, employees and representatives. If any port ion of t h e Property becomes a portion of an incorporated c i t y , then t h e term "county1' sha l l be deemed t o include the c i t y i n which the Property is located.

I.. 23. ~ e c l a r a n t . Declarant €!hall mean THE WILLIAM LYON COMPANY, a California corporatiort, i ts successors, and any Person t o whf ch i t sha l l have assiqn~ed any of its r i g h t s hereunder by an express written assignment. Declarant l s a "Partf c ipat inq Builder" as defined i n the SAMLARC Declaration.

1.24. Declaration. Declaration shal l mean the within Declaration of Covenants, Conditions and Restrictions and Reservation of Eaeements, as it may be amended from t i m e t o t ime as provided herein, The Declaration is a "Subordinate Declaration" as defined i n the SAMLARC Declaratf on.

Description: Orange, CA Document-Year. DocID 1989.143967 Page: .22 o f 122 Order: 13 Comment:

. .%- .**rrr;.rTZtl-.~~dR.yDeed~6ff~L-US~+;~w .a,...* -)nr =-- + - r r ~ e " o a r . - - + P , * *~cI,,..- I -*-.- .-.-*. . i - ~

t". ~ e e d . 03 i'rusf' shall mean a Mortgage o r a Dei4 af Trus t , as the case may be.

- --. 1.26. Delegate.

Delegate s h a l l mean the president of the Corporation who w i l l represent a l l Members of the Corporation (othlar than Declarant) i n matters involving S=.ARC, zs iurther described i n the SANlLJW2 Declaration and the By2 w s of SAMLARC.

1.27. E. DRE sha l l mean t h e California Department of Real E s t a t e and any successors ac re to .

1.28. Exclusive Use Common Area. Exclusive Use Common Area s h a l l mean those portions o f t h e Common Area or Corporation Property over w h k h exclusive easements are reserved fo r t h e benefit; of cer tain O w n e r s including without limitation f o r patio, deck and uncovered parking plarposes and internal and external telephone wir ing designed to serve a single. Undt but located outside We boundaries of t h a t Unit, in accordance with California Civ i l Code Sec t ion 1351 (1).

1.29. Fmily. Family shall mean one o r more natural Persons each r e l a t e d t o the other by blood, rcarriage or adoption, o r one o r more natural Pe~rsons not a l l so re la ted , but who maintain a common household Fn a Residence.

1-30. FHA. FHA sha l l mean t h e e d e r a l Housing Administration of the United Stal tes Department of Housing and Urban Development arrd any department o r agency o f the United States government which succeeds t o the FHA's function of insuring notes secured by Mortgages on r e s iden t i a l rea l es tate .

1.31. FHLMC. FHLElC s h a l l mean t h e e d e r a l Home Loan Mortgage Corporation (also knohxz a s The Nortgage Corporation) creaied by T i t l e 11 of t he Ekerqency Home Finance A c t af 1970, and arsy successors to such corporat ion.

1 .32 . Fiscal Year. Fiscal Year s h a l l mean the f i s c a l accounting and reportfng period of the Corporation se lec ted by the Board from t ime t o time .

1.33. FNMA. FNMh s h a l l mean t m e d e r a l National Mortgage Association, a government-sponsored private corporation established pursuant t o T i t l e VI I I of t h e Housing and Urban Development Act: of 1968, and any successors t o such corporation.

f s j 037/20464/000/0090/casaf ina 049/097 01-04-89

Description: Orange,(X Document-Year-DocID 1989.143967 Page: 13 of 122 Order: 13 Comment :

- 7 . . , 1 . 3 & r GNMA. ' . , .

GNMA shall mean ~ o v e t . m e n t National Mor' ;age Aasociatim administered by t he United States Department of Housing and Urban Detrelopmer.t, and any successor t o such association.

1.35. Improvements. Improvements sha l l mean a l l s t ruc tures and appurtenances t h e r e t o of every type and kind, includina but net limited to , bui lding8 , walkways; spr inkler pipes, garages, swimming pools , roads, driveways, parking s e a s , fences, screening w a l l s , block walls, re ta in ing walls, awnings, s te i r s , decks, landscaping, hedges, windbreaks, the e x t e r i o r surfaces of any v i s i b l e a~tructure and t h e paint on such surfaces, planted trees andl shrubs, poleB, spas, signs, a n d water sBZTener fixtures o r equipment;.

1.36. Maintenance Funds. MZtintenance Fuhds - shall ' ineln thB accouiltir created r e c e i p t s and disbutsemenCs of the Corporation purauant t o t h e provis ions of t h i s Declaration.

1.37. Manager. Manager shal l mean t he Person, eu.ployed by the Corporation, pursuant t o and limited by t h i s Declaration, and. deleasked the dut ies , power or functions of the Corporation as l imited by this ~ e c l a r a t i o n and the Bylaws.

1.38. Member, Membership. Member s h a l l mean every Person holding a membership i n t h e Corgorati~on, pursuant t o t he provisions of the Declaration. ~ e d e r s b i l p sh&l mean the property vot fng and other r i gh t s and priviLeges o f Members a s provided herein, together with the cor re t s t ive dukies and obligations contained in the Res t r i c t i ons .

1.39. Mortgage. Mortgage shal l mean any Recorded m o r t g a g e or deed of t r u s t o r o t h e r conveyance af a Condominium o r o t h e r portion of ths Property to-secure *he performz?rse of an obligation, which conveyance w i l l be reconveyed upon the corn le t ion of such performance. !the term "Deed of Trustu o r 'Trust Deed" when usrci shalJ. be synonymous with the term "Mortgage."

1.40. Mortgaqee, Mortgagor. Mortgagee shall mean a Person t o whom a Mortgage is made and s h a l l incl.ude the Beneficiary of a Deed of Trust; Mortgagor s h a l l mean a Person who mortgages his or its property to another ( i.. e., the maker of a Mortgage) , and shal l include t h e Trustor of z; Deed of Trust. The t e r m "Truster" sha l l be synonymous; with the t e r m "~ortyagor" and the term "Benef iciairy" ehall be synonymous with the t e rn "Mortgagee. "

f s j 037/20464/000/0090/casaf ina 049/0199 10-03-88

I Description: Orange,CA Document-Year.DocID 1989.143967 Page: 14 of 122 Order : 13 Comment :

89- 153967 - F$*a -; , rr. .-"ad".4 p I < . * ' . 2 y. . " ' - . 1->*,,..,.*.; *yYn .... . .I . e... a,. .. 9 .. .d.- -. T,?.." " *..1--. .I 1 ..UP

I.41. Notice and Hearing. -- -. Natice and Hearag =PhalL mean-WACten aotlce ,and a hear.%ng before the Board. a t which the Owner concerned s h a l l have an opportwnil;y t o be heard in person, or by caunsel at the Gmer's expense, i n the manner further: provided ;Sn t h e Bylaws.

1.42. Notice of Addition. Notice of Addition sha l l mean an instrument Recorded pursuant t o Article! XVI hereof t o annex a l l o r %ny portion of Ehe Annexable Terr i tory t o the Property.

1.43. Owner. Owner s h a l l mean t h e e c o r d owner, whether one o r more Persons, of a fee simple i n t e r e s t in a Condominium, ltncluding Declarant w i t h respect t o each Condomir.im owned by Declarant; provided, however, that the tern "Owner" sha l l exclude a Mortgagee but shall. include a vendee under a Land Sale- ConbracO i n whf eh the S t a t e ef Cali-fornPa i s the vendorr a seller under any other executory contract of sa le , and a lessee or t r w s f e r e e o f a leasehold estate i f a Residence is leased by Declarant t o such Person for a term in excess of ten (10) years and t h e lease or memorandum thereof is Recorded.

1-44. Person. Person sha:Ll mean a natural individual. a corporation o r any other e n t i t y with the legal r i g h t t o hold t i t l e to r ea l property.

1.45. Phase 1. Phase 1 sha l l mean a l l of t h e r ea l property descrd.aed i n Paragraph A of t he Preamble of t h i s Declaratfor..

f .46. Phase o f Development. Phase of Development; or Phase sha l l mean (a1 Phase 1 or (bl . . a l l the r e a l l covered by a ~ot ice 'o i : Addieion Recprded pursuant t o Art ic le 2CYI hereac for urbich a Final SuhbivLsionr Public Repart has been issued by the DREI unLess athewise dlefihed in such Ibtice. af Addifii~n.

1.47. Project. Project sha.11 mean that por t ion oZ the Property which f s , Prom time t o time, divided into Condominiums, including the Common Area and the Units t he re in . The Project i s a "condominium project " as defined i n Section 1351 ( f ) of the Californf a Civil Code. Lot 3 of Phase 1 shal l become a portion of the Profecz upon the f i r s t Close of Escrow for t he sa le of a Condominium i n s a i d Lot 3 .

Description: Orange, CA Document-Year. DocID 1989.143967 Page: 15 of 122 Order: 13 Comment:

..- - . . . 1 ~ 4 8 . , > P r o p e . ,. . Property m h a l l m e a n ( a 3 h a s e 1. and (b) each Phase of Development, described i n a Notice of Addition. The Proper ty is a "Cornon In t e re s t Developmentn as defined i n Section 1351Cc) 01: the California Civ i l Code.

1.49. Record, File, Recordation. Record, File o r Recordation ahal l mean, with respect t o any document, the recordation or f i l i n g of such document in the Off i c e of the Orange County Recorder i n t he S t a t e of California.

1-50. Resfdence. Residence shall mean a Uni t , intended f u r use oy a single Family, t o g e t h e r with any Exclusive Use Common Area reserved f o r the bstnef it of such Unit.

1-51: Xkstridions. Res t r ic t ions s h a l l mean thf s Declaratfon, fzhe Articles, Bylaws and[ the Rules and Regulations of the Corporation f %om t i m e t o t i m e i n effect .

1.52. Rules and Regulations. Rules and Regulations shall mean t h e ru les and regulat ions adopted by1 the Board pursuant t o t h i s Declaration o r the ~ y l a w s , as; such ~ u l e s - and Regulations may be amended f r o m time t o t i m e ,

1.53. SAMLARC. SAMLARC s h a l l mean Rancho Santa Margarita Landscape and Recreation Corporation, a nonprofit mutual benef i t co--poration incorporated under the laws of t he Skate of Calif ornla, i t s successors and assigns.

1 - 5 4 . SAMLARC Architectural Committee. SP-C Archi tec tura l Committee s h a l l mean the committee or committees prQvided fo r itz Art ic le X of t h e SAMLARG Declaration,

1.55. SAMLARC Declaration. SAMLARC Declarat ion shall mean tha t cer ta in Amended and Restated Declarat ion of Covenants, Conditions and Res t r ic t ions f o r Rancho Santa Margarita, which was Recorded on April 24, 1986, as Instrument No. 86-162928, of O f f i c i a l Records of Orange County, California.

1.56. Separate Interest o r Unit. Separate Interest or Unit sha l l mean a separate :interest i n space as de f ined i n Section 1351(f) of th& California Civi l . Code. Eadh Separate Interest or Unit s h a l l be a separate freehold estate, as separately shown, numbered and designated i n t he Con~dominium Plan, consisting of a res ident ia l element

f s j 037/20464/000/0090/casaf ina 0494094 10-03 -88

Description: Orange,CA Document-Year.DocID 1989.143967 Page: 16 of 122 Order: 13 Comment:

. '*" '" *,.... .. *." ....... ... ",* .". .,., - . -, - * .!?.I- 1.1.....- * - -, - .. 1- C -I-- X W - . . -.! 5- '4.'

and a garage element. In i n t e rp re t ing deeds, declarations - . and planer; .&he.existirxg- phyaicaS -boundarf ea. oP the .Unit- or. a

Unit constructed or reconstructed i n substantial. accordance w i t h the Condominium P l n n and t h e o r ig ina l plans thereof, i f such plans are available, shal l be conclusively presumed t o be its boundaries, rather than the description expressed i n the deed, Condominium Plan or EecL ara t ion , regardless of s e t t l i n g or l a t e r a l movement of the building andl regardless of minor variances between boundaries, as shown on t h e CondominJ.um Plan or defined i n t h e deed and DecLaration, and t h e houndlaries of a building as constructed or reconstructed.

1.57. V3. VA sha l l mean the-eterans Administration of the Iinited S t a t e s crf America and any department o r agency cE t h e Utiited S t a t e s government which succeeds t o VA' s function of issuing quaranteels of notes secured by Mortgages on resident ial r ea l e s t a t e .

ARTICLE 11

2. Casaf ina Maintenance CorporaZion.

2.1. Organization of Corporation. The Corporation is or sha l l be incorporated under t h e name of CASAFINA MAIN'IZNANCE CORPORATION, as a corporation not f o r p r o f i t wider the Nonprofit Mutual Benefic Corporation Law of t h e State! of California, as requi red by Section 1363 of the California Civil Code.

2.2. Duties and Powers. The duties and powers of the Corporation a re those s e t for th i n t h e Declaration, t h e Articles and ByLaws, toqether with i ts general and imp1 ied powers of a nonprofit mutual benef if corporation, generally t o do any and a l l things t h a t a corporat3~on organized under the laws of the State of Cal i f ornna may lawfully do which are necessary or proper, in operating f o r the peace, health, comfort, safety and general welfare af its Members, subject o n l y $0 the f imfratione upon t h e exercise of such powers as =re expressly s e t fo r th in the Ar t ic les , the Bylaws and i n t h i s Declaration. The CorporatiLon shall, fut.ther have t h e r i g h t t-o i n s t a l l o r construct capi tal Improvemeat s on the Common Property. The Corporation may a t any time, and from t ine t o time reconstruct, replace o r refinish any Xmprovement o r portion thereof upon the Common Property in accordance with the o r ig ina l design, f i n i s h or standard o f construction of such Improvement; replace destroyed trees or other vegetation and p lan t trees, shrubs and ground cove r upon any portion of the Common Pxoperty. The Corporation may employ personnel necessary fo r the effect ive operat ion and maintenance of the Common Property, including the employment of legal ,

f s j 037/20464/000/009O/casaf ina 049/099 10-03-88

I I

Description: Orange,CA Document-Year.DocID 1989.143967 Page: 17 of 122 Order: 13 Comment:

--me m--agepen$, a q c ~ m i ng sswAcea.. Tha Coqui~atioa shal l . . make availabre f o r Anspection by any prospective purchaser of a Condominium, any Owner af a Condominium, and the Beneficiaries. i n s u r e r s and guarantors of t he f i r s t Mortgage on any Condominium, current copitii of *he Declaration, t h e Art ic les , the Bylaws, t h e Rules and Reqdlaticms and a l l o t h e r books, records, and f inancial statements of t h e Corporation. as required by Sect ion 1368 of the California Civil Code.

2.3. Membership. Every Owner, upon becoming the Owner of a Condominium, s h a l l automatically become a Member of t h e Corporatian and SAblLARC, and sha l l remain a Member thereof u n t i l such time as hie ownership ceases for any reason, a t which time U s Membership i n t h e Corporation and SAMLARC shal l automaticalliy cease. Ownership of a Condominium shall be t h e so le qua1.ification f o r Membership i n the Corporation and S-C. A l l Membsrshi~ts ahall be appurtenant. t o the- Gondomiafum conveyed, and with the exception of Declarant, a Person shal l be deemed an Owner of a Condominium only upon Recordation of a deed conveying the Condominium to such Person. Except a s may otherwise be provided herein, the r igh ts , duties, p r iv i leges and obligations of alL Members of t he Corporation shall be provided An the Res t r ic t ions .

2.4. T r a n s f e r . The Membership held by any Owner sha l l not be transferred, pledged o r a l ienated in any way, except upon the sa le or encumbranc:e of such Owner's Condominium, and then or'. t o t h o purchaser o r Beneficiary of such Condominium. A p roh~b i t ed t ransfer is void, and w i l l not be re f lec ted upon the books and records of the Corporation. A Class A Membel: who has sold h i s Condominium t o a contract purchaser under an agreement t o purchase sha l l be en t i t l ed t o delegate to t he contract purchaser his Membership r i g h t s in the Corporation. The delegation s h a l l be in writing and sha l l be delivered t o t he Board before t h e contract purchaser may vote. However, the contract selltar sbsll remain liable f o r a l l d-harges and assessments a t t r i b u t q l e to h i s Condominium untij: fee tit.le t b fhe %ondominiurn s o l d i s transferred, as fur ther provided i n Section 5.1 of this Declaration. If the Owner of any Condominium f a i l s o r refuses t o transfer the Msmlaership regis tered in h i s name t o the purchaser o f the Condominium upon t r ans fe r of fee t i t l e thereto, the Board of Directors shal l have the r i g h t t o record the t ransfer upon the books of the Corpoz'ation. The Corporation may levy a reasonable t ransfer f e e against a new Owner and h i s Condominium (which fee sha l l be added to t h e Annual Assessment chargeable t o such new Owner) t o reimburse the Corporation for the administrative cost of transferring the membership t o the new Owner on the records of the Corporation provided such f ee

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Description: Orange, CA Document-Year. DocID 1989.143967 Page : 18 of 122 Order: 13 Comment:

at L.. . .. ? . .. , . . . . . ... .. . .. does no't exceed &a corporatibnis actual dust in&lved in changing its records of ownership.

2.5. Classes of Membershi . 'Ihe Corpcuration -assee of vatirrg . .

Membership.

Class A * Class A Members shall originally be all Owners, except Declarant for so long as there exists a Class B Membership. Class A Members shall be entitled to one (1) vote for each Condominium owzed by such Class A Members and subject to assessment. Declarant shall become a Class A M e m b e r with regard to Condominiums owned hy Ilecbarant upon conversion of Declarant's Class B Membership as provided below. When more than one (1) Person crwns any Condominium, all of those Persons shall be Members. The vote of suc& Condomlni.um shall he exezcised -.they among themselves determine in accordance with Section 2.6, but in no event shall more than one (1) Class A vote be cast for any Condominium.

Class B. The Class B Member shall be Declarant . The Class B Member shall be entitled %o thzee ( 3 ) votes for each Condominium owned and subject to asssssment , provided that the Class B Membership shall cease and be converted to Class A Membership on the happening of the earliest to occur of the following events:

(1) The second anniversary of the origLnaZ issuance of tke most recently issued Final Subdivision Public Report for a Phase of Deve1oprnm.t; or

(2) The fourth anniversary o f fhe original isscance of the Final Subdivision Public Report for Phase 1; or

c3) The sevenw anniversary of %he Recordation of this Declaratton.

2.6. Voting Riqhts.

(a) All voting rights shall be subject to the Restrictions. Except as provided in Section 34.2 of this Declaration ar,d Sectioa 4.8 of the Bylaws, as long as there exists a Class B Membership, m y provision of this Declaration, the Articles or Bylawrs which expressly requires the vote or written consent of a specified percentage (i. e . , other than actions requiring merely the vote or written consent of a majority of a quorum) of the voting power of the Corporation before act ion may be underzsrken

Description: Orange,CA Document-Year.DocID 1989.143967 Page: 39 of 122 Order: 13 Comment:

shall. require the approval o f such specified percentaga..of the- vobing pawer . of - each c lass of- Membership. Except as provided in Section 14.2 of t h i s Declaration and Section 4.8 of the Bylaws, when t h e Class B Membership has terminated, any provision of t h i s Decleratfon. the Articles or Bylaws lwhich expressly requires t he vote or urikkan consent: of Owners representing a specified percentage of the voting power of the Corporation before actiot? may be undertaken shall t h e n require the vote or wratten conselat of Owners representing such specified percentage of both the t o t a l voting power of the Corpo:ration and the voting power of t he Corporation residing in Owners other than Declarant .

(b) A t any meeting of the Corporation, each Owner, except as otherwf se provided i n A r t i c l e 11, . Section 2.5 with r e spec t t o the voting power of Declarant ,. sltal.1 be en tHled t o .cast no mom khan one (:L) vote for each Condominium owned as shown on t h e Coadominium Plan. Where there is more tllan one (1) record Owner of a Condominium (nco-owneron), a l l of those co-omers s h a l l be Kembers and may attend any meeting of the Corporation, bl;t only one (1) of those co-owners shall be ent i t led t o exercistr the s jnglrr vote t o whf ch t h e Condominium is enti1:led. Co-owners owning the majority i n t e re s t s in a Condominium shal l from time t o time designate i n writiny one (1) o f t h e i r number t o vote. Fractional votes shal l not b e allowed, and the vote f o r each Condoa~inium shal l b e exercised, i f at a l l , as a uni t . mere no vo t ing co-owr.er is designated or ff the designatfon h a s been revoked, t h e vote f o r the Condon~inium shall be exercised as t h e co-owners owing the majority i n t e re s t s i n the Condominzum mutually agree. Unless the Board receives a written objection i n advance from a co-owner, it sha l l be candusively presumed t h a t t h e corresponding voting co-omet is act ing with the consent of his co- owners. No vote shall, be. cas t fo r any Condon~inlum i f tho co-owners p re sen t i n person or by proxy owning the maj or it y in t e re s t s i n such Condoriilnium cannot agree t o said vote or other action. The nonvoting co-owner o r co-owners sha l l be jo in t ly and severally responsible f o r a l l of the obligations f mposed upon the j o i n t l y-owned Condominium and sha l l be entiitled t o a l l other benefits of ownership. A l l agreements and determinations lawfully made by the Corporation in accordance with the voting percentages establ ished herein, or i n the Byl.aws of

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Description: Orange, CA Document-Year. DocID 1989.143967 Page : 20 of 122 Order: 13 Comment :

". . t h e Coporat ion sha l l be ..+?$rn+, 4%. b,e,.b~n-+iggq ,of? a m dh~==,'*f~%i'~u'k~ee"sors and assigns.

2.7. R e ~ a i r and Maintenance of Comm-n Property by the Car oration. Subject t o Article X per taining t o d e s ~ c ~ i ~ ~ I m p r o v e m e n t s and A r t i o l e X I pe r t a in ing to eminent domain, t h e Corporation shal l paint, maintain, repair and replalee the Cornman Property and Isnprovemenks thereon o r sha l l cont rac t f o r such maintenance, repair and replacement t o assure maintenance of the Common Property and Improvctments thereon i n a clean, sani tary and attractive condit ion reasonably consistent with the level of maintenance ref lected in the most current Budget on f i l e w i t h and approved by the DRE. However, t h e Corporation shal l not be responsible fo r o r obligated t o perform those i t e m s of maintenance, repair o r Improvement of t h e Units o r Exclusive Use Common Area, the maintenance of which is the respoz~sibility of +-he Owners a s prov4ded in Article. 11, SectLon 2,9. C9XlX~risS.i OR. maintenance, repairs and Improvements shall include, without 1 imitat ion, the r i gh t , without obligation, to perf o m a l l correct ive j an i to r i a l , landscaping and repair work within any Residence, i f t he Owner f a i l s t o repair it; t h e repa i r and payment fo r a l l cen t ra l ly metered u t i l i t i e s , water charges, and mtchar~ical and e l ec t r i ca l equipment in t h e Common Property; repair and maintenaxe of any and a l l f i rep lace chi.nneys; p ~ l n e n t of a11 charges for a l l u t i l i t i e s which serve individual Units but which are subject t o a common meter; payment of a l l Common Expenses and charges; fo r water and u t i l i t - i e s serving recreational amenities ; t h e repa i r and maintenance of all walks, pr ivate driveways and other means of ingress and egress within the Property, and i f determined by the Board t o be economically feasible, an inspect ion and preventative program f o r t he prevention and eradica t ion of in fes ta t ion by wood-destroying pests and organf sms in the Property. If the Board adopts an inspection and preventative program f o r the preventiorr and eradication of in fes ta t ion by wood destroy Lng pesrs and organisms, the Corporation, upon reasonable not ice (which sha l l be giv6n no less than f i f t een (15) days nor more than t h i r t y (30) days before t h e da t e of temporary reIocafion) t o each Owner 6nd the bccupants of h i s Unit. may require such Owner and occupaats t o temporarily relocate fxom sueh Unit i n order t o accommodate e f f o r t s by the corporation t o eradicate such infestation . The notice sha l l s t a t e t he reason f o r the temporary relocatiton, t h e date and t i m e of the beginning of treatment, the an t ic ipa ted date and t i m e of termination of treaement, and t h a t the occupants w i l l be responsible f o r t h e i r own accommodations during the temporary relocation. Any damage caused to a U n i t by such entry by tlhe Board o r by any person authorized by the Board shal l be repaired by the Board as a Common Expense of the Corporation. A l l costs involved in maintaining the inspection and preventive program as well as repa i r ing and

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,*. - - replacing-the Common Property. m&'Improvements.therean when the need f o r such maintenance, r e p a i r o r replacement is the r e su l t of wood destroying pes t s o r organisms sha l l be a Common Expense subject t o the r e s t r i c t i o n s applicable t o Capital Improvement Asoeserments . A l l such cas t s of maintenance, repairs and replacements fo r t h e Property shall be paid ferr a s Common Expenses out of the Maintenance Eltnds as provided i n t h i s Declaration. A l l work performed by the Corporation f o r and on behalf of an Owner which work is not t h e responsibi l i ty of the Corporation &al l be charged to the Owner as a Special Assessment. I t s h a l l fur ther be t he affirmative duty of the Board o f Directors t o require s t r i c t compliance! w i t h a l l provisions of t h i s Declaratil~n and t o cause tlre Property t o be; izispeceed by the Archbtectural Committee fo r any violation the reo f . The cos t of any maintenance, repairs o r replacements by the Corporation a r i s ing out of, o r caused by, t h e a c t of an Owner oz such C w n e r P s 'Lrsmily, tcmdnts, guests, i'nviteerj, 6r agents sha l l , a f t e r Notice &nd Hearing, be l e v l e d by We Beard as a Special Assessment against such Owner.

2.8. Unsegregated Real Property Taxes. To the extent not assessed t o o r pa id by the Owrmts, tho Corporation sha l l pay a l l rea l and personal property taxes and assessments levied upon any por t ion of the Property. In addition, i f a l l of the Units i n a Phase of Devel.opment are taxed under a blanket tax b i l l covering a l l of such Phase, each Owner sha l l pay h i s proportionate share of any installment due under t he blanket tax b i l l t o the Corporation a t l e a s t ten (10) days prior t o t h e delinquency date; and the Corporatioin sha l l transmit the t a x e s t o the approprin5e tax col lect ion agency on o r before t h e delinquency date. Blanket taxes sha l l be allocated equally among the Owners and thew Condominiums in such Phase, based upon the t o t a l number o f Units i n such Phase. The Ccrporation sha l l , a t leaat forty- f i v e (45) days pr ior t o the delinquency date of any blanket tax installment, deliver t o each Owner i n s u e Phase a copy o I the Ca? b i l l , along w i t h a wriC%en n ~ t i c e setting f o r t h the Owner o obligatdon to- pay h-ia proportrionate share of the t a x installment and the potential. additional charges t o the Owner f o r f a i l u r e t o comply. The Corporation sha l l pay the taxes on behalf of any Owner who does not pay h i s proportionate share. The Corporation sha l l add t o the APrnual Assessment of a delinquent Owner t h e amount of any sum advanced, plus i n t e re s t a t the rate 00 ten percent (10%) per annuan and ilny amount necessary to reimburse the Corporation fo r any penalty o r l a t e charge a c t u a l l y assessed in connection with t h e blanket t a x b i l l f o r a Phase of Development, which l a t e charge r e s u l t s from t h e f a i l u r e of the delinquent Owner t o make t imely payment of h i s proportionate share of the taxes. Unti l the Closte of Escrow f o r the sa l e of ninety percent (90%) of the Condominiums in

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- . . . . the Pro j act, the foregoing prn~?ieions relating t a the collectfion of taxes in connection with a blanket t ax bill on a l l o r any port303 Of t h e Project may not be amended without the exp res s w r i t t e n consent of Declarant .

2 . 9 . Repair and Maintenance by Owners. Each Owner sha l l maintain, repair , replace, paint, paper, plaster , . t i l e , f i n i sh and res tore or cause tct be so maintainegd, repaired, replaced and restored, a t h i s sol e expense, al l portions of h i s Unit, a s well as the windaws , doors, 1 i g h t f ix tures actuated f rom switches controlled from, or s epa ra t e ly metered to , such Owner's Unit, and the inke r fo r surf aces of the walls, ce i l ings , floors, doors, permanent f ixtures and firebox in t he f i replace, i n a clean, s a n i t a r y and a t t r a c t i v e condition, i n accordance with the Condoiainium Plan and 'the original construction design of the Improvements i n the. P r o j eet. However; ncp b e b n g . walls, cedl ings, f l o o r s o r other rstructural or u t i lPty bearing portions ~f t h e buildings housing the Units sha l l be pierced or (otherwise altered or repaired, without the p r i o r written approval of the plans f o r t h e a l te ra t ion o r repa i r by the Archi tectural Committee. Each Owner s h a l l paint and perform normal day t o day main+cnance on the i n t e r i o r surface of the fences enclosing his lhclusive Cse Common Area pat io and deck. I t shall f u r t h e r be the duty of each Owner, a t h i s so le expense, t o keep f x e e from debris and maintain in a reasonably good s t a t e of r e p a i r subject t o t h e approval of the Archi tectural Committee, the Sxclusive Use Common Area over which an exclusive easement has been reserved for the benefit of such Owner. However, no Owner s h a l l be responsible fo r the periodic s t r u c t u r a l repa i r o r replacement of any fence or r a i l i ng surroundfng h is assigned Exclusive Use Common Area patio o r cleck, so long a s the painting, repair cs replacement i s not caused by the wi l l fu l o r negligent acts o i the Owner or h i s Family, tenants o r guests. Notwithstanding any o t h e r provisicn herein, each O w n e r shall. aLso he responsible f o r mainkenance and repair of any internal or external te lephone wiring wherever locatird which is. designed t o serve only h i s Unit, and shalL be en t i t l ed t o reasonable access over t h e Common A r e a fo r such purposes, subject t o reasonable l imi ta t ior l s imposed by t h e Corporation. I t shall f u r t h e r be the duty of each Owner to pay when due a l l charges f o r any u t i l i t y s e r v i c e which is separately metered t o h i s Unit, Subject to any required approval of the Architectural Committee, each Owner s h a l l be responsible for maintaining those p o r t i o n s of any heating and cooling equipment and o ther u t i l i t i e s which a re located within o r which exclusively serve h i s Unit. In addition, each Owner sha l l be responsible f o r maintainirig and repairing the a i r conditioning pad which supports or w i l l support t he a i r conditioning compressor serving srnch Owner's Unit and t o maintain any a i r

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- ~: . a ,~d i+$ .~~fng .BYS%S~UL samrinq. such, Unif, Each Owner shaLl maintain a d replace, at his sole cos t , any autcomntic garage door opener f o r his garage.

2.10. U s e of Agent. The Boardl of Directors. on behalf of the Corporation, may con t r ac t with a Manager for the performance of maintenance and repa5.r and f o r conducting other a c t i v i t i e s on behalf of t h e Corpruration, a s may be determxned by t h e Board. The maximum term of any such contract ("Management ContractR) s h a l l be one (1) year, unless a longer term is approved e i t h e r by vote o r wr i t ten assent of a majority of the voting power of the Association o r by the Veterans Admdnistration o r the Feder a1 Housing Administration, in which caEe the maximum tern of the Management Conkract sha l l be three [3) years. The m a x i n n u m term of any contract providing f o r Declarant's services t o the Association o r the Pro jec t sha l l a lso be t h r e e (3 ) years, Each, such. contract for Declarant ' 8 services and each Management Contract shr l l provide f o r i t s terminat ion by e i t h e r party thereto without cause and without paymyt of a termination f ee upon no more than ninety (90) days wri t ten no t l ce t o the other par ty .

2.11. FHA Regrrl atory Agreement. Xn order t o induce FHA t o insure Mortqaqes on Condomfnfuma in the Project , t h e Association niay en te r i n t o an agreement with FHA concerning t h e f iaancial and maintenance a f fa i r s of the Association, which agreement may be executed on FHA Form No. 3278. If the Association enters i n t o such an agreement, i t s provis ions sha l l control in the event of a confl ic t with the provis ions of t h i s Daclacation, the Bylaws, or the Articles, so long as FHA is insuring loans secured by Mortgages on Condominilums i n t h e Project .

ARTICLE I11

3. g g h t s i n Common Property.

3.1. Corporati on Easement. The Corporation s h a l l have a easement over the Common Area for performing f t s du t i e s and exercising its powers described i n t h i s Dtsclaration. The Corporation ' s obliaations t o maintain the Common P r ~ p e r t y i n any Phase of -~evelopment s h a l l cormnence on the date mlual Assessments commence on Condominiums i n such Phase. Until commencement of Annual Assessments on Condominiuns i n any Phase, the C ~ m o n Property i n such Phase s h a l l be maintained By Declarant.

3.2. Pa r t i t i on . Except as provided i n t h i s Declaration, t he re shal l be no j u d i c i a l p a r t i t i o n of t he Comon Area, or any part thereof, 'or t h e t&xri of t h e Project, nor s h a l l ~ e c l a r & t , any Owner

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.,-. . o r .'any o%_ed. Eezaoq acdm4z%ng .am. .i-n_fiew~S ia any Condgmini-um i;r' t h e Project seek m y such j ud i c i a l par t i t ion.

3.3. Filembe~s Easements i n Common Property. Subject t u the provisions of t h i s Declaration, every Member of the ~oxparat'ion shel l have, for himself, h i s ~amzly, h i s tenants and quests, a nonexclusive easement o f access, ingress, egress, use and enjoyment of, in and t o the Common Property, and such easements s h a l l be appurtenant t o and s h a l l pasx with t i t l e t o every Condominium i n the Project.

3.4. Extent of Members' Easements. The r igh t s and easements of use and enjoyment of the Common property created by t h i s Declaration shGl be subject to the Restr ic t ions, which include, without limitation, the followfng:

(a) The r ight o f t3re bard, t o suspendthe righks and easements of any Member, and tbe Persons derivfng such rights and easements from any Member, f o r . use and enjoyment of any recreation f a c i l i t i e s Located on the Common Property, for my period during which the payment of any Annual,, Special, Capf t a l Improvement o r Rec ~ n s t ~ v c t i o n Assessm~ent a g ~ i n s t t he Member and h i s Condominium remains delinquent, and, a f t e r Notice anri Bearing as provided i n the Bylaws, t o suspend such rights and easements fo r the period set fo r th in the Byl~aws f o r m y violat ion of the Res t r ic t ions , it being understood tha t any suspension for e i ther nonpayment OX any Assessment or breach of t he Restrictions shail not constitute a waiver or discharge of the Member's obligaxion t o pay assessments as provided in t h i s Declaration;

(b) The r ight of t h e Corporation t o consent t o or otherwise cause t h e construction of addstional Xmprovements on the Common Propezty and t o corrsent t o or atherwise cause the a l te ra t ion o r removal of amy exi8tir.g Improvements on t h e Conmon Property fo r t he benefi t of the Menbers of t h e Corporationg

(c ) The r ight of t h e Corporation. acting througlz the Board, t o g ran t , consent t o o r join i n t he grant o r conveyance o f easements, licenses o r rights-of-way in, on o r over t h e Common Property f o r purposes not inconsistent with t h e intended use of t h e Property as a r e s iden t i a l Condominium project;

(d) Subject t o t h e provisions of t h i s Declaration, the r ight of each Owner t o the

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excluaiva use aad accupancy far the. purposes designated i n this Declaration o r in any Recorded Notice of Addition of the Exclusive Use Common Area assigued t o h i s respective Unit;

(el The rights and reservations of Dzclarant as set f o r t h i n t h i s Declaration;

( f ) The right of the Corporation, acting through the Board, t o reasonably r e s t r i c t access to roofs, maintenance and landscaped areas and oimil ar areas of the Property;

(g) The right af the Corporation t o reaso~lably l i m i t the number of guests and tenants o f the Owners using the Common Property; and

(h) . The r i gh t of the Oorponation act'&ng. throutgh t h e Board, t o establ ish uniform Rules and Reguliations fo r the use of the Common Property, as provided i n t h i s Declaration.

3 . 5 . Delegation of Use. Any Member e n t i t l e d to the r igh t and easement of use and enjoyment of the Comnon property may delegate, in accordance with the ByLaws, his r igh t t o upe and enjoyment o f the Common Property to h i s tenants, contract purchasers or subtenants who reside in his Condominium, subject t o reasonable regulatiori by t h e Board. An Owner who has made such a delegation of r igh ts sha l l not be en t i t l ed t o use or enjoy the recrea t iona l f a c i l i t i e s or equipment of the Propsrty f o r so long ae such delegation remains in effect.

3.6. Waiver of Use. No Member may exempt himself from personal l i a b i l i t y for Assessments dulv levied bv the Corporation. or effect tbe release o f h i s 5ondominlnfuk from th; lkem &d chnsgas thereof, by waiving use and enjoyment of the Cornon Property or by abandaging his Co&~~~Lzium.

3 - 7 . Damage by Member. To the e x t e n t permitted by California law, each Member s h a l l be l i a b l e to U l e Corporation f o r any damage t o thie Common Property m o t : f u l l y reimbursed t o t h e corporation by insurance i f the damage i s sustained because of the negligence, w i l l f u l misconduct or unauthorized o r improper instal la t ion o r maintenance of any Xnprovement by t h e Member, h i s guests, tenants o r i nv i t s e s , or any other Persons deriving the i r r i gh t and easement of use and e n j o p e n t of the Ca'mmon Property from the Member, or h i s o r t h e i r respecti-re Family and guests, both minor and adult. However, the Corporatior?, act ing through t h e Board, reserves the right t o determine

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w h e t h e r any claim s h a l l be made upon the insurance maintained Bp -.Corp.oiaettiiOn.~. . - -G~ ~et'-cbiPor~t-50-~-f ii$t%e-r -*~g&gffVVee& -e5*-- r i g h t , a f t e r Notice and Hearing as provided i n the Bylaws, t o levy a Special Assessment equal to the increase, i f any, in insurance preriumei d i r ec t ly at t r ibutable t o t h e damage caused by the Memher o r the Person for whom the Member may be Liable as descrfbed above. In the case of j?ht ownership of r Condominium, the l f a b i l i t y cf the owners s h a l l be joint and severa l , except t o t he extent that the Corporation ahall have previously contracted in writing w i t h the j o i n t owners t o the contrary. A f t e r Notice and Hearing as provided in the Bylaws, t h e cost of correcting the damage t o t h e extent not reimbursed t o the Corporation by insurance s h a l l be a Special Assessment against such Member's Condominium, and may be enEorced as provided herein.

4. Archifiectural Review CoGittee.

4.1. Kembers of Committee. The Architectural Review Committee, sometimes referred to i n this Declixration as the uArchitectural Committee" or the, "Committee," shal l consist of three (3) members. The i n i t i a l members of the Committee sha l l consist of representatives of Declarant . Subject t o the following provis ions , Declarant s h a l l have the r i g h t and power a t a l l t i m e s t o appoint o r remove a majority of the msmbers of the Architectural Committee or to f i l l m y vacancy of suck majority unt i l s i t h e r (ill Close of Escrow has occurred f o r t h e aale of nfne ty percent (90%) of a l l the subdivision in te res t s i n t he P rope r t i e s and the Annexable Territory, or (ii) f i v e (5) yea r s folLowing the date of original i s suance of the F i r~a l Subdivision Public Report fo r Phase 1, whichever occurs e a r l i e r . Commencing car (1) year from the issuance of the F i n a l Subdivision Public Report for Phase 1, the Board sha l l have the gwwsr t o appoint and remove one (1) member of the Arcb i t i ec t~ t a l C~mmie-8. The Board shaf f have the parer t o appoint and =move a l l of the members of the Architectural Committee, provlded Declarmt is- not' tXea etrtPtlbd tii appoint a l l o r a portion of t he members pursuant t o t h i s Section 4.1. Committee members appointed by the Board shall be from the Membership of a re Corporation, but Committee members appointed by Declarant need not be Members of t he Corporation. Board members may also serve a s Conunittee members.

4.2. Review of Plans and S e c i f icat ions. The Committee sha l l consider and act Epon any 6 1 1 plans and specif Scations aubrnitted for its approval under th i s Declarat ia~n and perf o m such other d u t i e s as from time to t ime s h a l l be assigned t o it by the Board, including the

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I I

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. . - .a,.. . . .,a> r " * r P r-. . , ,, .,. ""'...' ' - *- .p . ' a 7 - . -. .- .-. * -* -.,9.p ." - .F

in spec ti or^ of construction i n progress t o assure i ts -.. canf ormanccs with plan's'- approved. by the. Committee. The

Architectural Committee and its powers hereunder a re i n atldition t o the SAMLARC Architectural Committee and its powera under tbe SWARC Declaration. No construction, a l te ra t ion , semoval, relocation, repainting, demolishing,* addition, mnodif icat ion, decoration, redecoration o r reconstruc+tion of an Improvement i n t h e Property sha l l be commenced o r maintained, =ti1 t h e plans and specifications therefor slnowing t h e nature, kind, shape, heightr width, color, mater ials and location of t h e same sha l l have been =lbrnitted 'to the Committee and approved in writing by the Comittee; provided, however, t h a t any Improvement may be repainted 1nrithol.A Comittee approval, so Long a s the Improvement is repainted the i d e n t i c a l color urhfch it was l a s t paintled. Without 1 imiting the generality of t h i s Art ic le IV, the provisions of t h i s Art ic le IV appLy t o the construction, ins ta l la t ion , a l t e r a t i o n and modification of so lar energy s y s t e m , a s defined. in Secti'orr SOP. 5 of th* California Civ i l Code, subject t o the p r ~ v i s i o n s of California Civi l Code Section 714, t5e Uniform Building Code of the County, applicable zoning d i s t r i c t regulattons and associated County ordinances. The Okmer submitting the glans ("Applican't") sha l l obtain a wr i t t en , dated receipt fo r the pLats a-la spec i f ica t ions from an authorized agent of the Committee Until chanqed by t h e Bcard, the address fo r .the submiesicn of such plans and specif icat ions sha l l be the principal off i ce of t h e Corporation. The Committee shal l approve proposals o r plans and specif icat ions submitted f o r its approv<al o r ly i f it deems t h a t t h e construction, alteration,^ , or addi t ions contemplated thereby i n the locations indicated w i l l not be detrknental t o t h e appearance of the surrounding area of the Property as a whole, tha t the appearance of any s tructure a f fec ted thereby w i l l be i n harmony with the surrounding s t r u c t u r e s , that the construction thereof w i l l not dezract from the beauty, wholesomeness and at t ract iveness of t h e Common Property o r +zhe enj o p e n t thereof by the Members, and tha t th,e upkeep and maintenance %hereof w i l l not become a burden on the Corparatbour. Declarmt, and any Person to which Doelarant may assign any o r a l l of its exemptions hereunder, nee2 inot seek or obtain Commj.ttee approval f o r any Improvement constructed on the Property by Declatant or such Person, as t h e case may be.

The Committee may condition its approval of p~roposals or plans and specif icat ions for any Improvement (1) upon the Applicant ' as furnishing the Corporation with securi ty acceptable t o the Corporation aga ins t any mechanic's l i en or other encumbrance which may be Recorded against the Property as a r e s u l t of such work, ( 2 ) on such changes therein as it deems appropriate, (3) upon the Appl Scant's agreement t o

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*. . grant appropr ia te easements t o t h e Corporation for the maintenance of t h e Improvements, (4) up- the Applicant' s agreement t o . i n s t a l l ( a t i t s so le cos t ) water, gas. e l e ~ t r i c a l , o r o the r u t i l i t y meters t o measure aqy *creased consumption, ( 5 J upon the Applicant ' s agreement to reimburse the Corporation f o r the cost of maintenance, or (6) upon t h e Applicant's agreement t o complete the proposed work within a s ta ted period of time, o r a l l of the above, and may requi re submission of addi t iona l plans and specif icat ions o r other inf ormatisn p r i o r t o approving o r disapproving material submitted. Tbe Committee may aJso i ssue rules or gu ide l ines setting forth procedures for the submission of plane f o s approval, r e q u i r i n g a fee t o accompany each application f o r approval, or add i t i ona l factors which it w i l l take in to consideration i z i reviewing submissions. The Committee may provide tha t the amount of the f e e s h a l l be uniform, o r t h a t it be deCi3rmined in 'any o'UleP re'asbnable maxiir'r, Nth a8 b y the reasonable c o s t of the construction, alteratzons or additions contemplated. The Committee may require such d e t a i l in p l a n s and specifications submitted for its review as it deems o rope r , including without i imitation, f l oo r plans, s i t e .no, drainage plans, elevation drawings and description ur. amples of exter ior material and colors. Unti l rece ip t by t h e Committee of any required plans and spec i f ica t ions , t h e Committee may postpone review o f any p l a n submitted f o r approval. Decisions of the Committee and t h e reasons fo r th= decisf ons shall be transmitted by the Committee t o t h e Applicant a t t he address set for th i n t he application for approval, within for ty-f ive (45) days a f t e r receipt by t h e Committee of a l l materials required by the Committee. Any application submitted pursuant t o t h i s Section G.2 s h a l l be deemed approved, unless r r i t cen disapproval o r a request for additional information o r materials by t h e Committee shal l have been transmitted t o tke Applicant w i t h i n for ty-f ive (45) days a f t e r the date of retzexpt by t h e Committee of a l l requi.red materials. The Applicant 6kraLl meet any review ar permit requirements a f the Courrty and t h e SAMbAFe Architectural Committee pr ior ta making any a r t e r a t i o m o r Improvements permitted hereunder.

4 .3 . Meetings of the Committee. The Committee s h a l l meet from t i m e t o time as necessary t o perform i t s d u t i e s hereunder. The Committee may from time to time by r e so lu t fon wnanimously adopted i n writing designate a Committee Representat ive (who may, but need not, be one of its members) t o t ake any action o r perform any duties for and on behalf (of t h e Committee, except t h e granting of var iances pursuant t o S e c t i o n 4.8. In t he absence of such designation, the vote of a major i ty of the Committee or the written consent of a ma jo r i t y of the Committee taken without a meeting, s h a l l cons t i t u t e an a c t of t h e Committee.

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-. . 4.4. No Waiver of Future A r o v a l s . The '&#provrl Zf the Camiktee o f any gFopo.als o r p l w and s ~ e c i f i c r t i o n s or drawinss fo r any work done or wro~osed o r i n connection with any other matt& requiring thk approval and consent o f the Committee, shal l not be deemed t o c o n a t i t u t e a waiver of any r ight t o withhold approval or consent t o any similar proposals, plans and specifications, drawings o r matter subsequently or add i t i ona l ly submitted f o r approval or consent.

4 . 5 . Compensation of Members. The membeurs of the Committee shall receive no compensation f o r services rendered, other than reimbursement f o r expenses Ancurred by t h e m in the performance of t h e i r du t ies hereunder.

4.6. Correction of Defects. Inspect ion of work and correction of defects there in shall proceed as foilows:

( a ) The Conunittee or its duly au thor ized representat ive may a t any time inspect any Imptovcsment for which approval of plans is required under t h i s Article fV. However, the Commitl:eers r i g h t of inspection of Improvements for which plans have been submitted and approved s h a l l termanate s i x t y (60) days after the work of Improvemerlt has been completed and the respective Owner has given wr i t t en notice of its corapletion t o t h e Committee. The Committee's r i gh t s of inspection shall not terminate pursuant t o this paragraph if p lans fo r t h e work of Improvement have not prev ious ly been submiitted t o a-d approved by the Committee. If, as a r e s u l t of such inspection, the Committee f inds t h a t the Improvement was done without obtainling approval of the plans therefor or was n o t dclne i n s u b s t a n t i a l compliance with the plans approved by the Committee. it s h a l l notify We Owirer in writing o f f a g l u r e t o comply w i t h this A r t i c l e IV withir. s i - y ( 6 0 ) 8ayIj from the Insp&ction, spec i fy ing the par tSculars of noncompliance. The Committee sha l l have the authority t o require the Owner to take such ac t ion as may be necessary t o remedy ehe noncon~pliance.

(b) If upon the expiration of sixty (60) days from the date of such notification, the Onner has f a i l e d t o remedy the noncompliance, trhe Committee s h a l l notify the Board in writing of s u c h fa i lure . Upon Notice and Hearing, as provided in t h e Bylaws, t h e Board sha l l determine whether there is a noncompliance and, i f so, the nature thereof and the

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dstimatsld 60st of coirict3.kig ok re&o%i?lg'the Same. If a noncompliance exists, the Owner shall remedy or removo the same within a period wf not more than forty-five (45) days from the date that notice of the Board tuLing i s given to the Owner. Ig the Owner does not comply with the Board ruling widin that period, the Board, at its option, may record a Noticc~ of Noncompliance and may peacefully remedy the noncompliance, and the Owner shall reisnbtirse the Corporation, up05 demand, for all expenses (including reasonable attorneys ' fees) incurred in connection therewith. If such expenses are mot promptly repaid by the Owner to the Corporation, the Board sfiall levy a Special Assessment agahst the 0-wner for reimbursement as provided in this Declaration. The right of the Corporation ta rc=$ve a noncomp+ying, Improvepent or otherwise remedy the nohcohpliance shall be in sedition to all other rights and remedies which the Corporation may have at law, in equity or in thfs Declaration.

(c) If for any reason the Comm&ttee fails to notify the Owner of any noncompliance w i t h previously submitted and approved plans within sixty (60) clays after receipt of written notice of completion from the Owner. the Improvement sh,all be deemed to be in accordance with the approved pians.

4.7. Scope of Review. The Arch2t:ectural Committee shall review a d approve or disapprove all plans submitted to it for any proposed Improvemernt, alteration or addition, on the-basis of aesthetic considerations, consistency with this Declaration, and the overall benefit or detriment which would result to the immediate vicinity and the Property generally. The Committee shall take into consideration the aesthetic aspects of the ar&itac€ural designs, placenent af buildirrgs, landscaping, color sohemes, e=erior finishes and materials and similar features. The commf ttee's approvzl- or disapproval shall be based solely on the considerations set forth in this Article XV, and the Committee shall not be responsible for reviewing, nor shall its approval of any plan or design be deemed approval of, any plan or design from the standpoint of structural safety or conformance with building or other codes. The Architectural Committee need not consider the impact of views from other Residences or Condominiums as a factor in reviewing, approving or disapproving any proposed landscaping, construction or other Improvement. There are no protected views within the Property and no Residence or condominium is assured the

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11 Order: 13 Comment:

existence o r unobstructed continuation of any par+%cular view.

4 -9. Variances. The Committee may authorize variances from compliance wi th any of t h e a r c h i t e c t u r a l provisions of this Declamation, including r e s t r i c t i o n s upon height, size, f l o o r area o r - placement of s t r u c t u r e s , or s lmi lar r e s t r i c t i o n s , when circumstances such as topography, n a t u r a l obst ruct ions , hardship, a e s t h e t i c o r environmental consideration may require. Such v a r i a n c e s m g s t be evidenced i n wri t ing, must be signed by a t l eas t a~major i ty 05 t h e members of t h e Committee, and shall become e f fec t ive upon ilecordation. After Declarant bas l o s t the r i g h t t o appoint a majority of the members of the Committee, the Board must approve any variance recommended b y the Commlf%e before arry sudx variance s h a l l become effective. If such variances a r e granted, no v i o l a t i o n of the covenants, condit ions and r e s t r i c t i o n s con ta ined in th i s Declaration s h a l l .be deemed t o have occurred w i t h respect t o the matter for which ~e variance was g r a n t e d . The granting of sucb a var iance shall not operate t o waive any of the terms and provisions of t h i s Daclaration f o r any purpose except a s t o the p a r t i c u l a r property and p a r t i c u l a r provision hereof covered by t h e variance, nor s h a l l it affect i n any way the Owner's obl igat ior t o comply with a l l governmental laws and regulations a f f e c t i n g t h e use of his Residence.

ARTICLE V

5. Maintenance Funds and Assessments.

5.1. P e r s o n a l Obligation of Assessments. Declarant. f o r e a c h Condominium owned bv it. herelw covenants and agraea to pay, and each m e r , by a&epiance 02 a deed o f a CondominTum whether o r not it shall be so expressed in any such deed, is deemed t o covenaht and agree t o pay t o the Corporation a l l Annual Assessments f o r Common Expenses and a l l applicable S p e c i a l Assessments, Reconstruct ion Assessments and C a p i t a l Improvement Assessments. The Corporation s h a l l not levy or c o l l e c t any Annual Assessment, Capital Improvement Assessment, Special Assessment: o r Reconstruction Assessment tha t exceeds t h e amount necessary f o r the purpose for which it is levied. Except as provided in t h i s Section S,f, a l l such assessments, together with in te res t , cos ts , and reasonable a t torneys ' fees , s h a l l be a separate, c l i s t inc t and personal 6bl igakion of t h e Person who was t h e Owner of t h e Condomfn.'.um a t t h e time when *he assessment f e l l d u e . T?ris personal obl igat ion cannot be avoided by abandonment of the Condonlinium or by anr o f f e r to waive use of t h e Co.mnon Property o r t h e Exclusive Use Comon Area. The persona l obligation f o r delinquent assessments

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- - . , . " . . . sha l l not pass t~ & new Owner ("Purchaser") unless express1 y assumed by the Purchaser.

5.2. Maintenance E'unds of Corporati on. The Board of Directors sha l l establish no fewer 'tban two (2) separate accounts ( the "Maintenance Fundsu ) , inta which shai l be deposited a l l monies paid t o the Corporatiorr, and from which disbursements shall be made, as provided h e r e i n , i n the performance of functions by t h e Corporation under t h i s Declaration. The Maintenance Funds may be e s t a b l i s h e d a s t rus t accounts a t a banking or savings i n s t i t u t i o n . Tlne Maintenance Funds sha l l include: (1) an Operating E'und for current Camman Expenses of the Corporation, (2) a Reserve Fund f o r c a p i t a l Improvements, replacements, p a i n t h q and repairs o f the Common Property (which cannot n o m a ~ l y be expected t o occur on an annual cr more f regvent b a s i s ) , and (3) any o-er funds which t h e Board. of Di rec tors mag establ ish t o the extent necessary under the p r o v i s i o n s of t h i s Declaxation . Nothing contained herein s h a l l 1 imit , preclude or impair the establ isbent of addf t ional Maintenance Funds by the Corgoration, so long as the amounts assessed t o , deposited into, and disbursed from any such Fund are earmarked f o r specified purposes authorized by t h i s Declaration.

5.3. Purpose of Assessments. The assessments levied by t h e Board of Di rec tors on behalf of the Corporation s h a l l be-used exclusively t o promote the recreat ion, hea l th , safety and welfare of t he r e s i d e n t s of the Condominiums, f o r the operation, replacement, improvement and maintenance of the Property, and t o d ischarge any other obl iqat ions of the Corporatiora under t h i s Dec la ra t ion . A l l amounts depos i ted in to the Maintenance E'unds m u s - t be used solely f o r t h e common benefit of a l l O E the Owners for purposes authorized by t h i s Declaration. Disbursements from the Operating Fund sha l l be qsde by the Board o f Dfrectors f o r such purposes as may be necessary for the d i scha rge of its r~spo~sibilities hereiq f a r the cornon b ~ n e f l t of a l l o f the Owners, other than those purposes for whach clxsbursements from the Reserve Fund are t o be used. Disbursenents froom the Reserve F w d s h a l l be made by t h e Board of D i r e c t o r s only for the respec t ive purposes specif ied in t h i s A r t i c l e V. Nothing in t h i s Declarat ion &ailal l be construed in such a way as t o permit t h e use of Corporation assessments or f u n d s t o abate any annoyance or nuisance emanating from o u t s i d e the boundaries of the Property. Annual Assessments s h a l l be used t o s a t i s f y Common Expenses of t h e Cozporatfon, as provided herein and i n the Bylaws.

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..*. . . 5 -4. Limitations on Annual Assessment Increases.

The Board s h a l l levy Annual Assessments i n accordance with the f ollovring provisions r

(af Maximum Authorized Annual Assessn~ent for I n i t i a l Y e a r of Operations. U n t i l t he f i r s t day of the Fxscal Year immediatelv fo l lowina the Fiscal Year Jm which Annual ~sses;ments co&ence, the Board sha r l not levy an Annual Assessment per Cond.oninium in an amount greater than One Thousand Nine Hundred Five Dollars and Seventy-Two Cents ($1,905-72).

(b) Maximum Authclrized Annual Assessment for Subse e n t F isca l Years. S t a r t i n g with the f i r s t - Fiscaft"Year immediatelv iollowina. t h e Fiscal Year in which Annual ~ s s s s s m e n ~ s conrmenc&, the Board sha l l not Levy Annual. Assessmen* i n any-.F&sca% Year i n excess of one hundred twenty p e r c e n t (120%) of Annual. Assessments levied du r ing t h e immediately preceding Fiscal Year without the vote of Members cast ing a majority of votes at a meeting or election of t he Corporarion i n which more than f i f t y percent (50%) of t he Members are represented. Notwithstanding the foregoing, t h i s Section does not l i m i t Annual Assessment i nc reases necessary for addressing an "Emergency S i tua t ion" a s defined i n Section 5. a ( & ) .

(c) Supplemental Annual Assessments. If the Board, by majority vote, determines tha t the importang and essent ial func t ions of the Corporation n;ay be properly funded by an Annual Assessment i n an amount less than the maximum authorized Annual Asse~sment described above, it may levy such lesser Annual Assessment. If t he Board determines tha t the estimate of total charges f a r I5ze -,rent year is or w i l l become inadequate tu meet a l l Cornon Expensea for the Property for any reason, it sliall immediately determine t h e approximate mount of the inadequazy - Subject t o t he l i m i t a t i o n s described i n Sections 5,4(a) and (b) above and (d) below, the Board s h a l l have the authori ty t o levy, at any time by a majority vote, a supplemeneal Annual Assessment r e f l ec t ing a revision of the t o t a l charges t o be assessed aga ins t each Condominium.

(d) Emergency Si tua t ions . For purposes of Sections 5.4[b) end 5.6, an "Emergency Situation" is any one o f the followingr

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(i) An extraordinary expense r e g b e d by an order of a court;

( i i ) An extraordinary expense necessary t o r e p a i r o r maintain the Property or mry part ion thereof for which the Corporation is responsible where a t h r e a t t o personal safety on the Pzoperty is discovered; and

( i i i ) An extraordinary expense necessary t o r e p a i r o r maintain the Property or any portion thereof f o r which the Corporation is responsible that could nat have beer; reasonably foreseen by t h e Board when preparing the Budget. Prior to the Smposition o r collection of an assessment pu1:suant t o t h i s subparagraph ( i i i ) , the Board shal l pass a resolut;lon. c , ~ f a l n ~ g xrittep findings as t,a necessity of the extraordinary expense involtred and why the expense was not or could not have been reasonably foreseen in the budgeting process. The resolut ion s h a l l be distributed t o the Members with the Notice of Assessment.

5.5. Annual Assessments/Commencement-Collection . The Board of Directors shal l authoriee and levy the amount of the Annual Assessment upon each Condominium, as gtrovided herein, by major i ty vote of the Board. The i n i t i a i Annual Assessment s h a l l begin on a l l Condominiums in a E1hase of Development (includinq unsold Condominiums therein owned by Declarant) an the f i r s t day of the f i r s t calendar month following the e a r l i e r t o occor of the following svents: (a) t he f i r s t Close of Escrow for the sa l e of a Condolminium i n such Phase, o r (b) conveyance of the Corporation Property i n such Phase, i f any, t o the Corporation. A l l Annual Assessments s h a l l be determined and assessed equa.11~ aga ins t the Members and t h e i r Ccndominiums based upon the number a f Condominiums owned by each M-er . Annual Assessments f o r fractions of ;u?y month involved sha l l be prorated. Declarant sha l l pay i t s f u l l pro ra ta share of the Annual Assesstcents on a l l unsold Condominiums for which Annual Assessments bave commenced. The Board shal l f i x the amount of the Annual Assessment a g a i n s t each Condominium a t l ea s t t h i r t y (30) days i n advance of each Annual Assessment period. However, un ie s s otherwise e s t ab l i shed by the Board, the i n i t i a l Annual Assessments s h a l l be assessed i n accordance with the most recent Budget on f i l e with and approved by the DRE. From time to t i m e t h e Board may determine tha t a l l excess funds i n t h e Operating Fund be retained by the Corporation and used t o reduce the f ollowfng year' s Annual Assessleents. Upon dissolution of t h e Corporation incident t o the abandonment o r termbation of t h e Property, any amounts remaining i n any o f +&e Maintenance Funds sha l l be dis t r ibuted t o o r fo r t he

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b e n e f i t o f the Members i n the same proportions as such monies were col lected from the Members.

Each Member sha l l pay t o the Corporat ion his Annual Assessment i n installments a t such frequency arid in such amounts as established by the Board. Each Arrnr~al Assessment may be paid by t h e Member t o t he Corporat ion in one check or i n separa te checks a s payments a t t r i b ~ t a b l e t o the deposi ts tmder tho Operating Fund and the Reserve Fund. I f any izs ta l lment of an Annual Assessmenr payment i s loss than t h e amount assessed anC t h t T+yae=.t: d o e s not specify the MaAntenarce Fund or Funds into which it shouLd be deposited, the r ece lp t by t h e Corporation from t h a t Owner shall 5e c r e d i t e d in order of p r io r i t y f i r s t t o t h e Operating Fund, v n t i k . thal;. par t ion OX thre Annua l Assessmen% has been s a t i s f iecl, and second t o t h e Reserve Fund.

5.6. Capital Improvement Assessments. Should the Board of Directors determine the need for a c a p i t a l Improvement or other such a d d i t i o n t o the Property, t h e c o s t o f which in the aggregate exceeds f i v e percent (5%) of the Budgeted gross expenses of t h e Corporation f o r the t h e n current Fiscal Year, then t h e vo te o r written consent of Members casting a majority of vo te s a t a meeting or e lec t ion o f t h e Corporation in which more than f i f t y percent (50%) of the Members a re represented, sha l l b e required to approve and r ende r e f fec t ive a Capital Improvement Assessment levied by the Board of Directors t o cover the cost of such expenditure. C a p i t a l Improvement Assessments may be lev ied by the Board without the consent of the Membsrs, if t h e aggregate of such expenditures i n each Fiscal Year does not exceed f ive percent (5%) of the Budgeted gross expenses of t i e Corporation f o r such Fisca l Year. Notwithstanding t h e foregoing, the Board may l evy in any Fiscal Year. a C a p i t a l Improvement Assessment agpl.ic&le to that Fiscal Year which exceeds f ive percent (5%) of the Eudgetrd gross expenses of the Corporation f o r such Fiscal Year i f such increase is necessary for addressing an Emergency Si tuat ion a s defined i n Section 5,4(d).

5.7. Delinquency. Any instal lment of ah assessment provided f o r i ~ n t h i s Declara t ion s h a l l become delinquent i f no t paid within f i f teen (15) days of the due date as establ ished by tho Board o f Di rec tors O f t h e Corporation. The Board shal l be au thor ized t o adopt a system pursuant to which any installmeint of Annual Assessments , Cap i t a l Improvement Assessmen.ts, Special Assessments, or Reconstruckion Assessments not paid within t h i r t y (30) days af ter t he due date, plus a l l reasonable costs of c o l l e c t i o n (including a t t o r n e y s ' f ee s ) and l a t e charges as provided herein, sha l l b e a r i n t e r e s t commencing th i r ty (30) days from the due da te u n t i l paid a t the r a t e of up to twelve percent 1[12%) per

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rurnim, but i n no even& more than the maximum r a t e permitted by law. The Board o f Di rec tors may a l so require the

-.- delinquent, Owner to pay. a late charge i n accordance with Calf f ornf a Civil Code Ssctfon X366(c] (2) . The Corporation need na t accept any tender of a partial payment of an installment of an assessment and a l l cos t s and attorneysP f ees at t r ibutable t h e r e t o , and any acceptance of any such tender shall not be deemed t o be a waiver bf t h e Corporation's r i gh t to demand and receive f u l l payments thereaf ter .

5 .a. Creat ion and Release of Lien. A l l sums other than Spec ia l Assessments assessed in accordance with the p rov i s ions of t h i s Declaration shall const i tute a l i e n on the respective Condominium prior and superi.or t o a l l oaer l i e n s , except (1) a l l t t x e s , bonds, assessments and o the r l e v i e s which, by law, would be superior ttiereto, and (2) t he l i e n o r charge of any f i r s t Mortgage of record (meaning any Recorded Mortgage o r Deed of Trust with f i r s t prierity- o r s enkor i ty over ather-Martgages or Deeds & Trust) made in good f a i t h and for value. Notwithstanding t h e foregoing, any assessment l i e n provided f o r hareunder sha l I. be prior and superior t o any declaration of homestead Recorded af ter the Recordation of t h i s Declaration. The Lien s h a l l become e f f e c t i v e upon Recordation by *Ae Board or its authorized agent of a Notice of Assessment ("Notice of Lien") securing the payment of any Annual, Capital Improvement o r Reconstruction Assessmeet or installment thereof, levied by the Corporation a g a i n s t any Condominium Owner as provided i n Section 1367 of t h e C a l i f e r n i a Civil Code. The Notice of Lien shal l s t a t e (i) t h e amount of the assessment or installment, as t h e c a s e may be, and other authorized charges and interest , including t h e c o s t of preparing and Recording the Notice of Lien. ( ii) t h e expenses of col lect ion in connection with a ~ y del inquent ins ta l lm~nts , including without limitation reasonable attorneys fees , ( i i i ) a suf f ic i sn t descr ipt ion of the Condominium against which the same has been assessed, ( i v ) t h e name and address of the Corporation, (u) the name o f t h e Owner thereof, and { u i ) i n orcler f o r the l i e n t o be enforced by nonjudicial foreclosure, *he nane and address aE t h e t rustee authorized by the Corporation t o enforce t h e l i e n by sale . The Notice of Lien s h a l l be signed by the Pres ident o r Vlce President and Secretary or Ass is tan t Secretary of the Corporation. The l i e n sha l l r e l a t e only t o t h e individual Condominium against which t he assessment was l e v i e d and not t o t h e Property as a whole. Upon payment to t h e Corporation of t he f u l l amount claimed i n the Notice of Lien, or other sa t i s fac t ion thereof , the Board of Directors s h a l l cause to be Recorded a Notice of Sat isfact ton and Release of Lien ("Notice of Release") s t a t i n g the s a t i s f a c t i o n and release o f t h e amount claimed. The Board of Directors may demand and receive from the

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.a -6.. . . - - .".* , t i

appI¶c;abTgiTO~'kirr "a: r ^ e a " s " ' o S ~ ~ cEPEije l5F' th& p % p F a FCecorilati'@n of t&i Notf'ce of Release before ~.ecocd$nq it. Any purchaser o r encumbrancer who has acted in good f a i t h and

.. extended mlue may, rely. up- the .Notice of Releaee as. conclusive evidence of the f u l l sat isfact ion of the sums: s t a t e d in the Notice of Lien.

5.9. Enforcement of Liens. I t s h a l l be the &uty of the Board 06 Directors t o enforce the c o l l e c t i o n of any amounts due under this Declaration by one f 1) o r more of che alternative means of relief afforded b y t h i s Declaration. The l i e n on a Condominium may be enforced by s a l e of the Condominium by the Corporation, the Corporation's attorneys, any t i t l e insilrance company authorized t o do business i n California, or o the r persons authorized t o conduct the sa l e a s a t rustee, a f t e r fa i lure of t h e Owner to pay a n y Annual, CapAtal Improvement or Reconstruction Assessmnt , or installment t he reo r , as provided herein. The sa le sha l l be conducted i n accordance w i t h t h e provisions of the California Civil Code,. applicable to the exerc.ise OI poweps of s a l e in mo*gages and deeds. of t r u s t , or in any manner permitted by law. An action may be brought t o foreclose the l i en of the Corporation by the Board, or by any Owner i f the Board f a i l s o r refuses t o act, a f t e r the expiration of a t l ea s t th i r ty (30) days from the d a t a on which t h e Notice of Lien was Recorded; provided tha t at L e a s t ten (10) days have axpired since a copy of the Not ice of Lien w a s mailed t o the Owner a f fec ted thereby. The Corporation, through its agents, shall have the power t o bid on the Condominium a t foreclosure sale, and t o acquire and hold , lease, mortgage and convey the same. Upon completion of the foreclosure sale, an action may be brought by t h e Corporation or the purchaser a t the sale i n order t o secure occupancy of t h e defaultiiig Owner's Unit, and t he defliulfiing Owner sha l l be required t o pay the reasonable r en t a l value f o r such Unit during any period of continued occupancy by the de fau l t i ng Otvner o r any persons claiming under the defaulting Owner. Suit t o recover a money judgment f o r unpaid assessments s h a l l be maintainable without forec los ing o r w a i v i n g auy l i e n sec:urw the sane, but this provision or any i n s t i t u t i o n of suit to recover' a money judgment shall no€ eanstitute an a f f i r m t i o n of the cdequacy of money damages. Any recovery resu l t ing from a s u i t a t law o r i n equity i n i t i a t ed tpu r suan t to t h i s Section r ay include reasonable a t t o rneys fees as f b e d by the court.

5.10. Pr ior i ty of Assessment Lien. The l i e n of the assessments. including i n t e r e s t ~rnd costs of co l lec t ior t (including atf orneys' f eesi, provided f o r herein s h a l l be subordinate to the l i en of any f i r s t Mortgage upon any Condominium. Sale or t ransfer of any CondomJ.niw shall not affect the assessment l ien . However, t h e s d . e o r

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,*.., .... -., . trjans$ar, q&-anyl !20ndomin~L;um~pursuant~ t~~jatdici-al-oipi - r*-**.+ "- - - - - . :- t -. . nonj ud ic i a l f oreclcrsure of" ar SXrst' Mortgage 'shall ext&nguish

the l i e n of such assessments a s t o payments which became due prior t o such sa l e ar transfer. No sale or transfer shal; - . - i.driY+g e3Cx7ahao5iiin5,& iiiniiin j500s el o-r--m gkg,e-sgin-e~t's" . Ulereaftebr becoming due. When the Mortgagee of a P i r s t Mortgage of record or o t h e r purchaser of a Condominium obta ins t i t l e pursuant to a judic ia l or nonjudicial farecLosurs of the f i r s t Mortgage, such acquirex of title, h i s successors and assigns, s h a l l not be l i a b l e for the share of t h e Common Expenses o r assessaients by the Corporatian chargeable t o such Condominium which became due pr ior t o t h e acqu-isition of t i t l e t o such Condominium by suolz scguirer. Such unpaid share of common Expenses or assessments sha l l be deemed t o be Common Expenses col lect ible from a11 of the Owners of t h e Condominiums in the Property inclrzding such acqufrer, h i s successors arzd assigns.

5.11. Capital Contributions t o t he Corporation. Upon acquisi t ion 00 ~ e c l a r a r i t , each +er, of a Candominiq in,Phase 1 shall con*r"&ut& t h the capi ta l of t h e Corporatf~n an amouzrlt equal to one-sixth (1/6th) of tke amount of the then Annual Assessment f o r that Condominium as determined by the Board. This amount sha l l be depos i t ed by the buyer into the purchase and sale escrow and d i sbu r sed therefrom t o the Corporation or t o Declarant if Declarant has previously advanced such funds t o the Co~rporation.

6. Project Easements and Rights of Entry.

6.1. Easements,

(a ) Access. Dec la ran t expressly rsserves for .the bcnef it of the Owners reciprocal, nonsxcllrsive easements f o r access, i n g r e s s and egress over a l l of t h e Common Property, including any private s t r e e t s o r driveways current1 y e x i s t i n g in the Property or subseqpzently addied ta it, vfhidh Basements may be crcnveyed by Declarant to Owners and t o the CorpbrY'ation l o r 'so l o n g a s DecIaraAt owns airy i n t e r e s t in the Property. Subject t o t he provisions of t h i s Declaration govern ing use and enj oyment thereof , the easements may be used by a11 Owners and t h e i r guests, tenants and invitees residing on o r temporarily v is i t ing the Property, for walkways, vehicular access and s u c h other purposes reasonably necessary f o r use and en j oyment of a Condomhnlum i n t h e Project.

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{b) Maintenance and Rnnn$r nee\ arnn+ 7 - - - +expressly-*reserge6 +opoPfUIe~benef i . t : ' ~ 1 f a ~ : B a 1 a r , d r of- - . . - . -. . .. .. -3

Darectors and,. a l l r .agents,. 0f.f icers d d e m ~ l a ~ y e e k of. the Cor~ora t ion , nonexclusive easements over the

Area, and t o perform a l l o ther tasks in accordance with the provis ions of t h i s Declaration. Such easements over the Common Area sha l l be appurtenant t o , binding upon, and s h a l l pass with the title to, every Condominium conveyed.

(c) Exclusive Use Common Area. Declarant expressly reserves for t he benefi t of certain Owners exclusive easements over the Common Area and Corporation Property, as applicable, for use of the ExcLuaive U s e Common Area, including without l iml t r t i on f o r deck purposes a s shown and assigned on the ~ondosiinium Plan o r Plans for the Projec t , f o r pa t io purposes as shown and assigned on IWhibit "C" at tached hereto or in the Notice of Addition for the ruepeG.ciyg ?hag+ of DevsLopm~~&, aq& fo r . uncovered parking purposes a s shown and assigned on Exhibit "En' attached hereto o r i n the Notice of Addition f o r t he respective Phase of Development. Owners: shaZl be ent i t led to exchange Exclusive Use Common A r e a parking spaces assigned to t h e i r respective Units i n the i r individual grant deeds, provided t h a t (I) a reciprocal deed of conveyance ident i fying t h e exchanged Exc1usive Use Comm~n Area parking spaces, the exchanging Owners and their respective Condominiums, i s executed by the exchanging Owners and the f i r s t Mortgagees of such exchanging O'wners, and Recorded; and (2) no exchange of Exclusive Use Common Area parking spaces shall be ef fec t ive i f such exchange would be unacceptable to the County. A copy of the Recorded reciprocal deed of conveyance sha l l be del ivered t o the Board as soon as poss ib l e af t z r Recordation.

(d) U t i l i t y Easements. Declarant expressly reserves for the'beniliflt of t h e Car~orat ion the rigbe of Declarant t o grant additiokal easements and rLghts-of-way over the Property t o u t i l iky companiis aiad puhlic agencies, as necessary, for the proper development and disposal of t he Property. Such r igh t of Declarant shall expire, with respect ho any Phase of Development, upon Close of Escrow fo r t h e s a l e of a l l Condominiums i n such Phase by Declarant.

(el Encroachments. Declarant, the Corporation and Owners of contiguous Residences

f sj 037/20464/000/0CltO/casaf ina 049/04L9 01-12-89

I Description: O r a n g e , CA Document-Year. DocID 1989.143967 P a g e : $40 of 122 O r d e r : 13 Conuuent: v

-

, a . . .',,.-"""*.",, ' .",'*-*' ""*l"-l.r.-... * r r ,r ,.-, . ,. . . r ' . .' .. - . -. shal l h6ve.i r&&i@jc&cal eakrneht app<iten&t t o each of the Residences ever the Residences and the Common

- .. P r o e ~ W .%be- py,rp~~s_e_ %ifl ill._ ~sEoF%!R,~.~,x .any i j s i s t 'h i encroachments of any walk of any Improvement, and (2 ) maintaining the same and accommodating authorized construction, reconstruction, repair , shiftzng, movement o r natural se t t l inq of the Improvements o r any o the r portion of the Project housing t h e i r respect ive Units. Easements and reciprocal negative easements f o r u t i l i t y services and repairs, replacement and maintenance of the same over a l l of the Common Property are spec i f ica l ly reserved fo r t h e bensf it of the Owners. Declarant expressly reserves f o r tho benefit o f the Common Area and Corporation Property, and far the benefi t of the Owners and the Corporation, reciprocal nonexclusive easements f o r drainage of uater from Exclusive Use Common Areas over, across and upon both (i) any and a l l adj oinis-;

. ExcLusiwe Use .Common &+as, and ( ii) .the Common Area and Corporation Property. The foregoing easements shall not unreasonably in te r fe re w i t h each Owner ' s use and enjoyment of adjoining Residences. No portion of the Common Property, including without limitation parking spaces and other amenities contemplated as a pa r t of the Property, a r e proposed t o be leased by DecLarant t o the h e r s o r to t h e Corporation.

6.2, Riqhta of Enlr . The Board of Directors sha l l hzve a limited rxght of entry in and upon the Cornoil Area and the in te r ior of all Units for t h e purpose of inspecting the Project, and taking whatever correct ive action may be deemed necessary or proper by tho Boara o f Directors, consis tent with the provisionis of t h i s Declaration. Bowever, such entry upon the i n t e r i o r of a Unit s h a l l be made, except t o e f f ec t emergency repaira or other emergency measures, only a f t e r three (3) days p r i o r wri t ten no t i ce t o the Oumer of such Unit and a f t e r authorizat ion of two-thirds (2/3rds) of khe Boeud of Directars. Nothing herein shall be construed t o impose any obligation upon the corporation t o maintain o r repair any property o r Improvements required t o be maintained o r repaired by the Owners. Nothing in t h i s ArCicle VI shall i n any manner l i m i t t h e right of the Owner t o exclusive occupancy and cont ro l over the llnteraor 05 h i s Unit. However, an Owner s h a l l permit a rig5t of en t ry t o the Board of Directors car any o ther persan authorized by the Board of Directors, a s reasonably necessary, scch a s i n case of any emergency 0riginatin.g in or threatening h i s Unit, whether t h e Owner i s present or not. Any damage caused t o a Unit by such entry by the Board of Directors o r by any person authorized by the

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I Description: Orange, CZ Document-Year. DocID 1989.143967 Page : dl of 122 Order: 13 Comment:

Board of Directors shall be repaired by the Corporation as a Common' Expense 'of 'the'-CorporatSori:" FiTrtHQfm'oEc;" "h DMer shal l permit other Owners, o r t he i r representat ives , t o enter h i s Residence fo r the purpose of performing required instal la t ions, a l t e r a t i o n s o r repairs t o t h e mechanical or eLectraca1. services t o a Residence, provided t h a t such requests f o r entry are made in advance and entry i s made a t a time reasonably convenient t o the Owner whose Unat is t o be entered; and provided f u r t h e r , t ha t t he entered Unit is l e f t in substantially the same condition as exis ted immediately preceding such entry. In. case of an emergency, such r ight of entry sha l l be immediate. Any damage caused t o a Unit by such entry by an Owner or its representative s h a l l be repaired by such Owner. Upon receipt of reasonable notice from me Corporation (whf ch shall in no eveht be l e s s than f i f teen (15) days nor more than t h i r t y (30) days) each Owner sha l l vaca5e h i s Unit in order t o accommodate e f f o r t s by the Corporation t o perform any other maintenance o r repairs pur-suht t o fge DeZlakaEion. The Hoard s h a l l fiave the r ight of entry t o the Units and t h e right t o remove Owners from the i r Units, as necessary, t o accomplish its du t i e s as provided herein. The c o s t of performing any such maintenance or repairs shal l be a Common Expense of t h e Corporation; however, each Owner s h a l l bear h i s own cos t s of temporary telocation. If the Corporation acts t o e rad ica te any wood destroying pests or organisms, then the procedure established in Section 2.7 shall c o n t r o l .

ARTXCLE VII

7. Deolarant's Rights and Reservations. Nothing in the Res t r i c t i ons shaLl l i m i t , and no Owner or the Corporation sha l l do anyth ing to in te r fe re with, the r igh t of Declarant to subdivide or resubdivide any portion1 of the Property, o r t o complete Improvements tq and on t h e Comoc Property or any portion o f t he Property owned so l e ly or pa r t i a l l y by Declarant, or t o a l t e r the foregoing o r its constcuctian plarrs and designs, or t o construct siu~h addit i anal Improvements as neelarant deems advisable in the course of developmen-t o f t h e Property so long as any Condominium i n the P ro j ec t remains unsold. Any arlteration of Declarant's construction plans shal l requi re the pr io r approval of VA and FWL i f such al terat ion is incansis tent w i t h t he general plan o f development of t h e Property submitted t o and approved by VA and FHA. The r f g h t s of Daclarant hereunder s h a l l iiiclude, but s h a l l no t be limited to, the r igh t t o i n s t a l l and maintain such s t ruc tures , displays, signs, b i l lboards , flags and s a l e s o f f i ce s as aay be reason&ly necessary for the conduct of its business of completing the work and disposing of t3.e Condominiums by sale , resal.e, ].ease or otherwise. Each Owner by accepting a deed t o a Condominium hereby acknowledges t h a t t h e ac t iv i t i e s

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Description: Orange, CA Document-Year. DocID 1989.143967 Page: 42 of 1.22 Order: 13 Comment:

ofeDeclarant may tempofairily o r periianei5tly Xmpaik ' t h i view of ~ u c h Owner and may cons t i t u t e an inconvenience o r nuisance t o the Ownters , and hereby consents t o such impairment, inconvenience or nuisance. This Declaration s h a l l not l i m i t -the right of D a c l a r a n t at any tilre pr ior t o acquis i t ion of t i t le t o a Condominium in t he Project by a purchaser from lleclarant to establ ish on t h a t Condominium addi t iona l l icenses, easements, reservations and rights-of -way t o i t s e l f , to u t i l i t y companies, o r t o others as may from time t o time be reasonably necessary t o the proper development and disposal alf the Property. Declarant may use any Condominiums owned by Declarant in t h e Projacrt as model home complexes or real e s t a t e sa les or leas ieg off ices . Declarant need not seek or oBt aiii Architectural Committee approval of any Improvement constructed o r placed by Declarant c.n any p ~ ~ r t i o n of the Property by Declarant. The r ights of Declarant hereunder and elsewhere i n these Restrictions m.ay be assigned by Declakane f6 k y successor i n in te ies t t o any portion of Declarant 's i n t e r e s t i n any portion of the Property by a written assignment. Notwithstanding any other provision of t h i s Declaration, *he p r i o r wri t ten approval of Declarant, as developer of: the Property, w i l l be required be fo re any amendment to t h i s Art ic le aha1 1 be ef fective. Each Owner (with +he exception of t h e Administrator of Veterans Affairs, an o f f i ce r of the United S ta t e s of America) hereby grants, upon acceptance of his deed t o h i s Unit, an irrevocable, special power of attornsy t o Declarant t o executce and Record a l l documents and maps necessary t o allow Dec la rmt t o exercise i ts r i g h t s under this Article. Declar-k and I t s prospective purchasers of Condominiums shall be en t i t l ed t o the nonexclusive use of t h e Common Property and my recrea t iona l f a c i l i t i e s thereon, without f u r t h e r cost for access, ingress , egress, use o r enjoyment, i n o r d e r t o show the Property t o its prospective purchasers, t o dSspose of the Properzy a s provided herein, and t o develop and. s e l l the Annexable Ter r i tory . Declarant, its successors md tenants, sha l l a l s o be en t i t l ed To the nonexclus2ve u s e o:E any portions o f the Property which comprise prfvate s t r ee t s , drives and wallrways for t B e purpose of ingress, egress and accommodat tng vehicular and pedestrian t r a f f i c to and from the Property and the -exable Territory. The use of the Common Property by Declarant sha l l not unreasonably interfere with t h e u s e thereof by t h e other Members. The r i g h t s and reserva t ions of Declarant s e t forth. i n t h i s A r t i c l e VII shal l terminate on the seventh (7th) anniversary of the f i r s t Close of Escrow for the sa l e of a Condominium in the Projec t .

AlZTICLE V I I I

a. W s idence and Use Restrictions. A l l of t h e Property sha l l be held, used and enjoyed subject t o the following l imitat ions and restr ic t ions,- sirbject i o the exemptions o f Declarant s e t f o r t h i n t h i s Declaration.

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A -. g., X , Single Fanfly Residences. That port:lon of the Unit comprising the "residential eleme%tsl' s h a l l be used exclusively f o r single Family r e s iden t i a l purposes, subject t o t h e exemption granted Declarant under Article V I I of t h i s Declaration. An Owner may r e n t h i s Unit t o a single Family provided tha t the Unit is rented f o r a term greater than t h i r t y (30) days, subject t o a l l of t h e provisions of the Declaration.

8.2. Parking and Vehicular Restrictions. The parking areas of the Property s h a l l be used f o r parking autbbrized-vehicles only and s h a i l not be used f o r &orage; l i v ing , recreat ional o r business purposes. No Ourner shall park. s t o r e o r keep anywhere on t h e Property or on any public street abut t ing o r visible Erom t h e Property any large commercial.-type vehicle (including, but not limitzed to, any dump t ruck , cement mixer truck, oil or gas truck or delivery t a c k ) . No Person shall. pad, s t o t e or .keep any r ec~eaUona l vehic le (i.ncluding, but not l imi ted to , any camper unit , house car o r motor home), bus, t r a i l e r , t r a i l e r coach, camp t r a i l e r , boa t , a i r c r a f t , mobile home, inoperable vehicle o r any o the r s imi l a r vehicle anywhere on the Property or on any publ ic stre~t d u t t i n g or v i s i b l e from the Proper-ty except wholly within a garage and only with t h e garage door closed. In additioua, no Person shall park, s t o r e or keep anywhere on the Property o r on any public s t r e e t abutting o r visibLe from the Property any vehicle or vehicular equipment, mobile o r otherwise, deemed t o be a nuisance by t h e Board. Only passenger motor vehicles may be parked i n the open parking spaces. T?ls foregoing excludes camper trucks, vans and s imi l a r vehicLes up t o and including three-quarters (314) of a t on i n weight when used for d a i l y transportatiamn of Residents o r of v i s i t o r s to o r from t h e Project. There &all be no parking i n the driveways, i f t o do so obstructs free t r a f f i c flow, constitutes a nuisance, violates t h e Rules and Regulations, o r otherwise creates a sa fe ty hazard. The Corporation, through the Board and its agents. is hereby empowered to establ ish ltparking, " "guest parking" and "no parkinq" a reas wfthin the Property. ResWrlng ar repaixJenzr of vehic les s h a l l not be permitted anywhere cn the Property o r on any pubLic s t r e e t abutting or v i s i b l e from the Property. Notwithstanding the foregoing, such repair sha l l be permitted within an Owner's garage when the garage door i s ciosed, provided such act ivi ty i s not undertaken as a business and provided further t h a t such act ivi ty may be prohibi ted e n t i r e l y or in part by the Board i f t h e Board determines t h a t such act ivi ty cons t i t u t e s a nuisance. Any addit ional parking spaces which may constitute a par t of t h e Cornor? Property sha l l be subject t o reasonable control and use l i m i t a t i o n by the Board of Directors . The Board ahaI.1 determine, i n its discretion, whether there i s noncompliance with the parking and vehicular r e s t r i c t i o n s herein. Without

I Description : Orange, CA Document-Year. DocID 1989.143967 Page : 44 o f 122 Order: 13 Comment:

i n any way limiting the obl igat ions af the O w n e r s as - elsewhere ' hereln- descrLbed; the 'Forpbr'atfbir ;" of'aQY14ty representing the Corporation, s h a l l have the r i gh t , and s h a l l be obligated, t o enforce a l l parking r e s t r i c t i ons h e r e i n set for th and t o remove any vehicles i n violation thereof i n accorlance with tbe provisions o f Section 22658.2 of t h e California Vehicle Code, or other applicable lawa, codes, and sta2utes. I f , f o r any reason, t h e Corporation f a i l s t o enforce the parking r e s t r i c t i ons , the County shall have the r igh t , buC not the duty, t o enforce such parking r e s t r i c t i o n s i n accordimce with the California Vehicle Code and a l l o ther applicable laws, codes, s t a t u t e s and local ordinances, Vehicles owred, operated or within the control of an Owner, ar of a r e s iden t of such Owner's Unit, sha l l be parked in t h e garage rrf wch Owner t o t he extent o f the space ava i l ab l e therein; provided that each Owner shall ma in t ab h i s garage i n a manner which ensures t h a t it is capable of accommodating a t l ea s t one (1) such vehicle.

8.3. Nuisances. No noxious o r offensive a c t i v i t i e s (including but. not l imi ted t o the r e p a i r of motor vehicles) shall be car r ied on upon t h e Property o r on any public s t r e e t abutting or v i s i b l e from t h e Property. N o horns, whistles, bells or other sound devices , except secur i ty devices used exclusively t o pro tec t the security of a Residence and i ts contents, s h a l l be placed or used in any such Residence. No loud noises, noxious odars , noisy o r smoky vehicles, large power equipment or l a r g e power tools , unlicensed off -road motor vehicles or i t e m s which rr.ay unreasonably interfere w i t h te levis ion o r radio recept iran of any Owner i n the Project, sha l l be located, used or p laced on any portiotn o f the Property or oa any public s t r e e t a b u t t i n g or v i s ib le from t h e Property, o r exposed t o the view o f o the r Ownera without the prior written approval of the Architactu~ral Committee. The Board of Directors (of the Corporation sha l l have the r igh t t o determine i f m y no i se , odor, o r a c t i v i t y producing such noise o r odor c o m s t i t ~ t e s a nuisanee. No Owner sha l l permit crr cause anythilu~ to be done or kepC rlpon the Property or on any pubLic street abutting o r v i s ib l e f r o m the Property which may increase the Pate of insurance on U n i t s or on the Property, or r e su l t .in t h e cancel lat ion of such insurance. o r which w i l l obs t ruc t o r Snterf ere wi th the r ights of other Owners. No Person a h a l l commit or permit any nuisance on the Property. Each Owner sha l l compLy with a l l of the requirements of the Rocal o r s t a t e h e a l t h authori t ies and with a l l other governmental authorities; with respect t o the occupancy and use of a Residence. Each Owner sha l l be accountable t o t h e Corporation and other Owners f o r t h e conduct and behavior of children r e s id ing in or v i s i t i n g h i s Unit and other fami ly members or persons residing i n o r vis i t ing hfs Unit. Pmy damage t o t h e Common Property, personal property of t h e

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Description: Orange, CA Document-yea;. DOCID 1989.143967 Page: 45 of 122 Order: 13 Comment:

corprrration, o r property o f a n o t h e r Owmar, caused by such =. - . chiLdren- or. ather f may-..members, . shalJ,- be repa:ired. a+ the

s o l e expense o f the Owner o f t h e U n i t where such children or o the r family members or persons a r e res iding oz vis i t ing. .

No sign, p8o;:;r.Wiay o r aUler adver t i s ing device of any character s h a l l he erected or main ta ined anyvlhe~re on the Property o r on any public s t r e e t a b u t t i n g or v i s i b l e from the Property, o r shown or displayed f rom any Residence, without t h e p r i o r wr i t t en consent of t h e Arch i tec tu ra l Committee; provided, however, t h a t the r e s t r i c t i o n s of th in Section s h a l l not apply t o any sign o r n o t i c e of 6ustom;lry and reasonable dimension which s t a t e s that me Residence is f o r xeut o r saLe, SO long as it is c o n s i s t e n t w&th the standards ~romulga ted by t h e Architectural Committee in accordance with Sect ion 4.2 hereof . Such s ign or n o t i c e may be placed within a Uni t but not upon any portion of t h e Common Property. The Board of Directans . may erect w i . t h i n the Common Property a master d i rec to ry of Units which are f o r s a l e o r for lease. This Section s h a l l no t apply 20 any s i g n s used by Declarant o r it8 agents i n connection w i t h t h e s a l e of Condominiums o r t h e const ruct ion o r a l t e ra t ion of the Units o r Common Property, t r a f f i c and v i s i t o r p a r k i n g a i m s i n s t a l l e d b y Decl arant , and t r a f f f c and park2 ng c o n t r o l signs, i n s t a l l e d with the consent of the Board. Notwithstending the foregoing, nothing contained i n this Section s h a l l be ccnstrued i n such manner as t o p e r m i t the maintenance of any s i g n which is n o t zn conformance w i t h any ordinance of the county.

8.5. Antennae. No r a d i o s t a t i o n o r shortwave o p e r a t o r s of any kind s h a l l opera te from any Unit or any o t h e r p o r t i o n of-the Property u n l e s s approved by t h e Arch i tec tu ra l Committee. With the exception of any master antenna mainta ined by the Corporation, no ex te r io r radio an tenna , "C.B." antenna, teleuisian antenna, s a t e l l i t e dish, e a r t h receiving s ta t ion , o r o t h e r antenna oE any type shall be erected o r maintained anywhere in the. Praperty .

8.6. Ins ide and Outs ide I n s t a l l a t i o n s . No ou.tside i n s t a l l a t i o n of any t y p e . including bu* not l i m i t e d t o c lo thes l ines , s h a l i be- constructed; erected or maintafned on any Residence, e x c e p t i n g antennae i n s t alZed by Declarant as a p a r t of the i n i t i a l c o r ~ s t r u c t i o n of t h e Property wd except iis may be i n s t a l l e d by, o r with t h e p r io r consent of the Architectural Committee. No patio or deck covers, wiring, o r i n s t a l l a t i o n of a i r conditionbng, water so f teners , o r o t h e r machines s h a l l be i n s t a l l e d on t h e e x t e r f o r of t h e buildings of t h e P r o j e c t o r be allowed t o protrude through t h e walls o r roofs o f t h e buildings (with

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Description: Orange,iCA Document-Year.DocID 1989.143967 Page: 46 of 122 Order: 13 Comment:

. " " . . tire exception of t h o s e items installed during the o r i g i n a l construction of t h e Pro jec t ) , unless the prior written approval of the Archi tec tura l Committee is secured. Outdoor p a t i o or lounge f u r n i t u r e , plants, exposed window coverAngs and barbecue equipment may Be maintained pursuant to r u f e s and procedures of the Architectural Committee. The type and co lo r of a l l exposed window coverings shal l be svbject t o t he p r i o r written approval of the Architectural Committee. Notwithstanding t h e spec i f i c i t y of the foregoing, no e x t e r i o r addition, change o r a l t e r a t ion t o any Residence shal.1 be commenced without the p r i o r written approval of the Architectural Commiktee. Nothing sha l l be done tn any Un i t o r in, an o r t o the Common Area which w i l l or may tend t o impair t h e structural in tegr i ty of any building in t h e Pro jec t or which would s t ructural ly a l t e r any such bu i ld ing except as oUlerwise expressly provided herein. !mere shall be no altleration, repagr OF ~eplacemenO of - w a l l coverings within Units which may diminish the effectiveness of the sound control enqineering within the buildings in a e Projec t . No Owner s h a l l cause or permit any mechanic's l i e n t o be fi led against any portion of the Project for l abor o r rnaeerials alleged t o have been furnished or delivered to t h e Pro jec t or any Condominium Unit for such Owner, and any Owner who does cso sha l l immediately cause the l i en t o he discharged within five (5 ) days a f t e r notice t o the Owner from the Board. If any Owner f a i l s t o remove such mechanic's l i e n , t h e Board may discharge t h e lien and charge the C i w n e r a Special Aaisessment f o r such cost: of discharge.

8.7. Animal Regulations. Ilo anbrala, l ives tock . rep t i les , insects, poultry o r o t h e r animals of any kind shall.-be kept i n any ~es idence except t h a t usual and o rd ina ry domestic dogs, cats, f i sh , and birds i n s ide bird cages m a y be kept as household pets within any Residence provided that: they are not: kept, bred or r a i s e d the re in for cgmmerctal purrposes or i n unreasonable .quantities or sizes. As used i n the Declaration, "unreasonable puarrrtities' shall ordinarily mean more than &Q (1) pets per Residence; provided, however, t h a t the Board may determine t h a t a reasonable number i n any instance may be mcre o r l e s s . The Board shall have t h e r igh t t o l im i t the size of pots and may prohibit maintenance OE any animal which consrtitutes, i n t h e opinion of the Board of Directors, a nuisance t o aay other Owner. Animals belonging to Owners, occupants or t h e i r l icensees, tenants o r invi tees within the Property must be e i t h e r kept within an enclosure, o r on a leash he1.d by a person capable of con t ro l l i ng the animal. Furthermore, any Owner shall1 be l i a b l e t o each and a l l remafning Owners, t h e i r famil ies , quests and invi tees , for m y unreasonable n o i s e o r damage t o person o r proper ty caused by any animals brought or kept upon the ProjecC by an Owner o r by members of hTs family, his tenants or his guests. I t shal l be the duty and

D e s c r i p t i o n : O r a n g e , C1A Documen t - Y e a r . D o c I D 1989.143967 P a g e : 4 7 o f 122 O r d e r : 13 C o m m e n t :

.. . - . . resgo&eihi l i ty of aach such Owner to 'clean up aft& such animals which have deposited droppings or othertuise ~ s e d any por t ion of the Common Property or on any pub l i c s t r e e t abut t ing or visibLe from the Property.

8.8. Eusiness or Cammerclal Act ivi ty . Nu business or commercial ac t iv i ty sha l l be maintained or conducted on the Property, except t h a t Declarant may maintain s a l e s and leasing of f ices as provided in A r t i c l e VII. Notwithstanding the f oregoins, professional and administrative occupations may be carried on within the Units, s:, long as there ex i s t s no external evidence of them, a n c i provided further t ha t al l of the applicable requirements of the County are sa t i s f ied . No Owner sha l l u s e h i s Condominium i n such a manner as t o i n t e r f e re unreasonably with the business of Declarant in se l l ing Condominiums i n the Project, a s set forth. in A c t F c l e Vf I of this Daclaration,.

8.9. Rubbish Removal. Trash, garbage. o r other waste sha l l be disposed of by res idents of -the Project only by depositing- t h e same i n t o t r a s h containers designated f o r such use by t h e Board of Directors . N o portion oE the Property s h a l l be used fo r the s torage of building materials, refuse ar any o the r materials. Ns clothing, household fabrics or other unsight ly a r t i c l e s s h a l l be hung, dried or aired on any portion of 'the Property, including the i n t e t i o r of any Residence, so as to be v is ib le from other Residences or the s t r ee t . There s h a l l be no e x t e r i o r f i r e s whatsoever except barbecue f i r e s contained wi th in receptacles therefor. The cost of t r a s h collectian and remows11 and t r a s h bin rentals sha l l be borne by the Corporation and s h a l l const i tute a portion of t h e Common Expenses. The Corporation sha l l ensure t h a t t r a s h is removed from the E'roject no l e s s frequently than weekly.

8.10. Further Subdivision. Sub j e c t t o ~ r t icle-=st esteventy-f i m percent (75%) of t h e f i r s t Mortqaqees, or Owners represent ing seventy-five ~ e r c e n t ( ' ~ 5 ~ j of the voting p o w e r of the corporation r;siding in 0 h e r s other than D e c l arant: have given t h e i r pr ior written approval, and a l l appl icable laws and regulations have been complied uia , no Otuner sha l l physical ly or l ega l ly subdivide his U n i t i n any marar+r, including without l imitat ion any division of his Unit or his Condominium into time-share es ta tes or time-share uses; however, the r igh t of an Owner t o rent or lease a l l of h i s Unit by metans of a written lease o r rental agreement (for o t h e r than temporary purposes) subject t o the Restrictions s h a l l not he impaired. Any f a i l u re by the l e s s e e of the U n i t t o comply with the terms of t h i s Declaration or the Bylaws of t h e Corporiatlon s h a l l const i tute a default under the lease o r r e n t a l agreement. Notwithst=-ding the foregoing, no Unit in

-42-

f s j 037/20464/000/009G/casaf ina 049/QB9 01-12-89

B I Description: Orange, CA Document-Year. DocID 1989.143967 Page : ,48 o f 122 Order: 13 Comment:

I-p.'., -,.-,.--*-, - . p r , " . M r . -a> rr-r ...c*...r*. . * r r>-r .pr. I . . . . . .'.." .... r. ^....,~. . - . . r.y.- -- ..1.- U 4 - % . m ..-. : .

the Project may be p a r t i t i o n e d or subdivided wi,thout t he A*w - pri0b written- approval .of- ,the.- Eenef fciaay. of any fairs*

Mortgage on tha t Unit. T h i s Section may not be amended without the pr ior written approval of the Beneficiaries of a t l e a s t seventy-f ive percent ( 75%) of the first Mortgages of Coniiaminiums in the Project .

8.11. Drainage. There shall be no Fnterference with %he established drainage pa t te rn over the Property, unless an adequate alternative provisio~n is made for proper drainage and i s f i r s t approved in wri t ing by the Archi tec tura l Committee. For t he purpose hereof, Restablishedn d ra inage in any Phase f s defined as t he drainage which exists a t the t i m e of the f i r s t U2lose of Eserow f o r the sa l e of a Cundominium fn such Phase, or t h a t which is shonzr on any plans approved by the Ardhitectural Committee,

8.. 12. Wa-ter Supply. System. No individual water supply or water softener system shall be permitteci i n any Unit un le s s such system is designed, 1 ocated, constructed and equipped i n accordance with the requirements, 'standards, and recommendations of any applicable water d i s t r i c t , the County, and a l l other applicab1.e governmental a u t h o r i t i e s . Any sewage disposal system shall be instal led only a f t e r approval by t he ArchitecturaL Committee and any governmental healta au tho r i ty having jurisdiction.

8.13. View Obstructions. Each Owner, by accepting t i t l e to a Condominium,. hereby acknowledges ';hat (a) there are no protected views w i s i n the Property, and no Condominium is assured the existence or unobstructed continuation o f any part icular view, and {b) any construction, landscaping o r other instal la t ion of Improvements b y Declarant o r ocher Owners may impair t h e view from any Condominium, and the Owners hereby consent t o such view impalrmeut .

.8,14.. Righks of Eaudicapped. Subject t o khe review r i g h t s of the Architectural CommitCee and t h e SAMLP!C Architecturn1 Committee. each Ower shall have the right t o modify h i s residence &d the route over the Coamon A r e a Leading t o the f r o n t door of h i s Resideace, a t h i s sole cos t and expense, i n order to f a c i l i t a t e access t o h i s Residence by Persons who are blind, visually handicapped, deaf o r plhyaically disabled, or t o alter conditions which could be hazardous t o such Persons.

D e s c r i p t i o n : O r a n g e , C!A D o c u m e n t - Y e a r . DocID 1 9 8 9 . 1 4 3 9 6 7 P a g e : 4 9 o f 122 O r d e r : 13 Comment:

ARTICLE I X

9. Insurance.

9.1. Duty to Obtain Insurance; Types, The Board s h a l l cause t o be obtained and maintained adequate blsmket public l i a b i l i t y insurance (including medical payments), w i + z such l i m i t s as may be considered acceptab le t o FNMA (not less than 51 million covering a l l c laims f o r personal in jury and property damage a r i s ing out of a s i n g l e occurrence), i c s u r i n g against l i a b i l i t y f o r bodily i n j u r y , death and property damage arising from t h e a c t i v i t i e s o f the Corporaticrn and its Members, with respec t t o t h e Common Property. The Board s h a l l also cause t o be obtained and maintained fire and casualty insurance witb efftendecl coverage, without deduction for depreciation, i n a n amount as near as poss ib le t o t h e f u l l replaceruent vallre o8f t h e Common Property and t h o s e port ions o f t h e 'tinits consisting of a l l

.. . Eijctures, . instal-letCons- or addibions comprising a pert of a e buildings housing t h e Units and a l l bu i l t - i n o r s e t - i n appliances, cab ine t s and initial basic f l o o r coverings, a s i n i t i a l l y i n s t a l l e d o r replacements thereof i n accordance with t h e o r i g i n a l p lans and specif icat ions fo r the P r o j e c t , or as i n s t a l l ed by o r at the expense of t h e Owners. Such insurance s h a l l be maintained f o r the benefi t oZ the Corporation, t h e Owners, and the Mortgagees, a s t h e i r i n t e r e s t s may appear a s named insured, subject, Ihowever, t o loss payment requirements as set: f o r t h herein. 31se Board of Directors s h a l l ptrchase such other inauranca, as necessary, including, but n o t l imi ted to, e r r o r s and omissions, directors, off icerb and agents l i a b i l i t y insurance, p l a t e glass insu~rpmce , medical payments. ma1 ic ious mischief, liqaor l i a b i l i t y and vandalism insurance, f i d e l i t y bonds and worker's compensation, and such ot'ner r i s k s as s h a l l customarily be covered with respect t o condominium p r o j e c t s s imilar i n construct ion, location and use. F ide l i t y bond coverage which names t he Corporation as an obligee must be ~ b t a i n e d Cif reasonabry available) by o r on behalf of the Corporation far any person or e n t i t y handling Zwds cf =he CDrparation, including, bu t not limi%e& to, of f i ce r s , di rec tors , t r u s t e e s , employees and agents of the Corporation, whether o r not such Persons are compensated for their services, i n an amount not less than the estimated rnaxinzum of funds, including reserve funds, Sn t h e custody of t h e Corporation. a t any given t ime during t h e term of each bond. However, i n no event may the aggregate amount of such bonds be less than the sum equal t o one-fourth (1/4) of t h e Ainnual Assessments on a l l Condoniniums in t h e Project, plus reserve fmds. In add i t ion, the Corporation s h a l l continuously maintain i n e f f e c t such casualty, f load and l i a b i l i t y insurance and f i d e l i t y bond coverage meeting the insurance and f i d e l i t y boild requirements for condominium proj ect s

f s j 037/20464/000/OOYO/casaf ina 049/049 Ql-12-89

D e s c r i p t i o n : O r a n g e , CA D o c u m e n t - Y e a r . D o c I D 1 9 8 9 . 1 4 3 9 6 7 P a g e : .50 o f 122 O r d e r : 13 C o m m e n t :

?* ..%>. '.* % ...- . ?.. n *. * - + " .rs X - . . . --.- .:.* i. . I . "., .1.. 1 1 , .. - C * . . PI. -..-...-- * - -.L* . ." -.. i v

established by FNMA, ONMA and FHLMC, 8Q long aa any of which - - . is a Mor-t.gagee or. Ovner of - a- Condomin.ium within the. Prcrj ect, except t o the extent such coverage i s not ava i l ab l e or has been waived i n writing by FNKA, GNMA and FHLMC, as applfcab1.e.

9.2. Waiver of C l a i m Against Corporation. As t o a l l policies of insurance maintained by or f o r the benef i t olf t he Corporation and the Owners, the Corporation and the Orwners hereby waive and release a l l claims against one another, the Board of Directors and Declarant, t o the ex ten t of the insurance proceeds available, whether or not t h e insurable damage o r i n ju ry is caused by the negligence of or breach of any agreement by any of said Persons.

9.3. Right and Duty of Owners t o Inaure. I t is the responsibility of each Owner t o provide insurance on h i s personal property and upon a l l other property and Improvememsts. within h i s Uni t for which thh' Corparatean Etas not purchased insurance i n accordance with Section 9.1 hereof . Nothing herein s h a l l preclude any Owner from carrying any public l i a b i l i t y insurance as he deems desirable t o cover his individual l i a b i l i t y fo r damage t o person ar property occurring inside h i s individual Unit o r elsewhere upon the Property. Such po l i c i e s s h a l l not adversely affect or diminish any l i a b i l i t y under any insurance obtained by or on behalf of the Corporation. and duplicate copies of such o t h e r polj.cles shall be deposited with the Board upon request. If any loss intended t o be covered by insurance c a r r i e 6 by or on behalf of t h e Corporation shall occur and t h e proceeds payable thereunder s h a l l be reduced by reason of insurance carried by any Owner, such Owner s h a l l assiga the proceeds o ~ f such insurance car r ied by him to the Corporati~n, t o t h e extent of such reduction, f o r appl icat ion by the Board t o t he same purposoe as t h e reduced proceeds a r e t o be appl f ed.

9.4. Natice of Expiration Requirements. If avaAlable. each of the po l i c i e s O f insuranc.3 maintained by the Corp~ra t ion shaLL contain a provdsion that sa.id poaiay

- s h a l l not be cancelled, terminated, mater ial ly rnoldified or allowed t o expire by ita terms, without ten (10) days' prior wr i t t en noEiee to the Board and treclarant, and to each Otmer and Beneficiary, insurer and guarantor of a f i r s t Mortgage who has f i l e d a written reques t with the c a r r i e r f o r such n o t i c e and every other Peraon i n i n t e re s t who requests such n o t i c e of the insurer. In addition, f i d e l i t y b o d s shall provide t h a t they may not be cancelled or subs t an t i a l l y modified without ten (10) days pr ior wri t ten notilee t o any insurance trustee named pursuant t o Section 9.6 and t o each FNMA servicer who has f i l e d a written request with the c a r r i e r fo r such notice.

f s j 037/20464/C00/0090/casaf ina 049/049 02-12-89

I I I Description : Orange, CA Documen t-Year. DocID 1989.143967 Page: 51 o f 122 Order: 13 Comment:

9.5. Insurance Prer.iums. Insurance pr,emiums. ior. any. .blanket. inswmce caverage obtained by t h e Corporation and any other insurance deemed necessary by t h e Board of Di rec tors shall be a Common Expense t o be included i n thb Annual Rssassments levied by the Corporation and col lected from the Owners. That port ion of the Annual1 Aseessments necessary f a r the required insurance premiums s h a l l be sepera te ly accounted fo r by the Corporation in the Rerlerve Fund, t o be used solely f o r the payment of ptemiws of required insurance a s such premiums become due.

9.6. Trustee f o r Pol ic ies . The Corporation, acting through i ts Board of Directors, i s hereby appointed and ska l l be deemed trustee of tke i n t e r e s t s of a l l named ixkauredp under ~ o l i c i e s of h u r a r r c e purchased and maintained by the corporLt ion. A l l insurance proceeds under any such pol ic ies as provided for i n Section 9.1 of t h i s A r t i c l e s h a l l be paid t o t h e Board of Directors a s W s t e e s , The. Board shaILL have f 1111, power. ta reeef.ve- and t o receipt f o r t h e proceeds and t o deal therewith as provided herein. Insurance proceeds s h a l l be used by the Corporation for the repair o r replacement of the property fo r which the insurance was car r ied or o therwise disposed of as provided i n Article X of t h i s Declaration. The Board is hereby granted the authority to negotiate l o s s settlements with t h e appropriate insurance c a r r i e r s , w i t h participation, t o t he extent they des i r e , of f i r s t Mortgagees who have f i l e d written requests within ten (10) days of receipt of no t ice of any damage o r destruct ion a s provided in Article X, Section 10.4 of t h i s Declaration. Any two (2) o f f icers of t h e Corporati om may sign a l o s s claim form and release form i n connection with the se t t lement of a loss claim, and such signature6 s h a l l be binding on all. the named insureds. A representative cboser, by t h e Board may be named as an insured, fncluding a t r u s t e e with whom the Corporation may enter i n to an insurance t r u s t agreement or any successor t o such t ru s t ee who sha l l have exclusive authority to negot iate losses under any policy provid ing p ro~a r ty or liability insurance and t o perform such other functions necessary t o accowlliab t b i s purpose. .

9.7. Actions as Trus tee . Except a s otherwise s p e c i f i c a l l y provided in t h i s Declaration, t h e Board, a c t i n g on behalf of the Corporation and a l l Owners, s h a l l have t h e exclusive r ight t o bind such part ies i n respec t t o a l l m a t t e r s affecting insurance carr ied by the Corporation, the s e t t l emen t of a l o s s clalm, and the surrender, cancel lat ion, and rnodif ication of a l l such insurance, i n a manner s a t i s f a c t o r y t o Beneficiaries of seventy-f ive percent (75%) of t h e f i r s t Mortgages held by f i r s t Mortgagees who have f i l e d requests under Section 9.4. Duplicate o r i g i n a l s o r c e r t i f i c a t e s of a l l pol icies of f i r e

II II Description : Orange, PA Document-Year. DocID 1989.143967 Page: 52 of 122 Order : 13 Comment : " !I

and ~ a a u a l k y insurance maintained by the Corparatian and of .,. . . .UL. xenewalrs- thereof, t o g e t h e ~ w k t h p r o o f 6f 'payment' of' ' ""

premiums, shall be del ivered by the Corporation to a l l Owners and lortgageee who have requested the same is writing.

9.8. Annual Insurance Rev%=. The Board shall review the insurance car r ied by or on b e h a l f of the Corporation at l e a s t annually, f o r the purpose of determining the amount of the casualty and f5ro insurance re fer red t o i n Sec t ion 9.X above. If economically f e a s i b l e , the Board s h a l l ob ta in a current appraisal of the f u l l replacement value of t h e Improvements on the Property except f o r foundations and foot ings, without deduction fo r depreciation, from a qua1 i f ied independent insurance appzaiser, p r io r to each such annual review.

9.9. Required Waiver. A 1 1 po l i c i e s of physical damage insurance sha l l provide, if reasonetbly possible; far ws lvbr of tH& f b l l d w i f T 9 fiGiits, to the extent that: t h e respect ive insurers would have the r i g h t s without such waivers :

(a) subrogation of c l a i m against the h e r s and tenants of the Owners;

(b) any defense based upon coinsurance;

(c) any r i g h t of setoff, countercl~im, apportionment, p rora t ion or contribution by reason of other insurazce not carried by t he Corporation;

(d) any i nva l id i ty , other adverse effect or defense on acaamt of any breach of warranty or condition caused by t h e Corporation, any Owner or any tenant of any Owner, or ar is ing f r o m any a c t , neglect, or omission of any named insured or the respective agents, contractors and employees alf any insured 3

(e) any right of the insurer t o repair , rebui ld o r replace, and, i f the Improvement is not repaired, r e b u i l t or replaced following loss, any r i g h t to pay under the insurance an amount less than t h e replacement va lue of We Improvements insured;

(E) no t ice of t h e assignment of any Owner of h i s in t e re s t i n the insurance by vi?%ue of a conveyance of any Condominium; and

(g) any right to require any assignment of any Mortgage t o the insurer.

E s j 037/20464/000/909C!/casaf ina 049/049 01-12- 89

Description : Orange, (P Document-Year. DocID 1989.143967 Page: 53 of 122 Order: 13 Comment:

-. 10, Destruction of. Improvements.

10.1. Restoration of the Property. Except a s otherwise provichd i n t h i s Declaration, i n t h e even% of any destruction of any portion of t h e Property, the repair o r replacement of d i c h i s the r e s p ~ n a i b t l i t y of the Corporation, it shal l be the duty of the Corporation to r e s t o r e and repair the s a t e t o its former condit ion, a s promptly as practical. The proceeds of any insurance maintained pursuant: t o Art ic le IX hereof f o r r econs t ruc t ion or r e p a i r of the Property s h a l l be used f o r such purpose, unlsrss otherwise provided herein. The Board sha l l be au thor ized to have prepared the necessary doculnents t o effect such reconstruction as ptomptl y as practical. llrne Property shall be reconstracted or r ebu i l t substaqt ial ly i n accordance w i t h the Cor.dominium Plan and the original cons t ruc t ion plans i f t hey a re available, unless changes recommended ky t h e Archjrte&ura& Committee -have been .approved izr. wr i e i zg by sixty-seven percent (67%) of the Owners and by t h e Beaef i c i a r i e s of fifty-one percent (51%) oI f i r s t Mortgages upon t h e Condominiums. I f t he amount available from t h e proceeds of suck insurance pol icies f o r such r e s t o r a t i o n ar.d r e p a i r is a t least eighty-five percent (85%) of t h e estimated c o s t of restoration and repair , a Reconstruction Assessment s h a l l be levied by the Board of Directors t o p rov ide t h e necessary funds for such reconstruction, over and above the amount of any insurance proceeds available f o r such purpose. I f t h e amount available from the proceeds of such insurance p o l i c i e s for such restorat ion and repair is l e s s than eighty- f ive percent (85%) of the estimated cost o f r e s t o r a t i o n and r e p a i r , t h e Owners by the vote or written consent of no t leas than sixty-seven percent (67%) af the Owners, together with t h e approval of the Beneficiaries of k t l eas t f i f ty-one p e r c e n t (51%) of the f i r s t Mortgages on Condominiums i n the P r o j e c t , shal l determine whether the Boara s h a l l l e v y a Reconstruction Assessmeqt and proceed with such r e s t o r a t i o n and repair. If the Owners and =eir Mortgagees, as provided &-we, determhe tha t the cos t of such res ta ra t ion and repair would be substantial and that it wouLd not be in t h e i r best i n t e r e s t s t o proceed with the same, the Owners may, at the i r d i s c r e t i o n , proceed as provided in Section 10.2 below.

10.2. Sale of Property and Riaht t o P a r t i t i o n . If m e amount available fro& the proceeas of t h e insurance p c l z c i e s maintained by the corporation i s l e s s t han eighty- f i v e percent (85%) of the cost of reconstruction, a c e r t i f i c a t e of the resolution wthorizinq such rirconstructf on may be Recorded within six (6) months from t h e d a t e of such d e s t r u c t i o n and, S f such c e r t i f i c a t e is not Recorded within s a i d period, it. shal l be conclusively presumed t h a t the

f s j 037/20464/OQO/009O/casaf ina 049/049 01-12-89

Description: Orange,CA Document-Year.DocID 1989.143967 Page: 54 of 122 Order: 13 Comment:

" a

Ournets have determined not to r e b u i l d said Improvements. No Owner shal l have the t i g h t t o p a r t i t i o n of h i s i n t e r e s t i n the Condominium and there shal l be no judicial p a r t i t i o n of the Project, o r any part thereof J except that i f a ce r t i f i ca t e of a resolution to rebuild o r restore the Project has not been Recorded as provided above, within s i x (6) months from the da t e of any p a r t i a l o r t o t a l destruction, o r i f restoration has not actually commenced within sa id period, and the vote o r wri t ten consent t o such a par t i t ion is obtained from the Owners of two-thirds (2/3rds) of the Condcrniniums i n t h e Project, t h e n conditions fo r pa r t i t i on a s s e t forth i n Subdivision (4) of Section 1359(b) of the California Civil Code sha l l be deemed t o have been sa t i s f i ed . In such event, the Corporation, ac t ing through a majority of the Board, shal l prepare, execute and Record, as promptly as pract ical , the c e r t i f i c a t e s t a t i n g t h a t a majority of the Board m y properly exercise.- irrevocabke power uf attorney t o s e l l the Project f o r t he b e n e f i t of the Owners (with the exception of the Administrator of Veterans Affairs, an off icer of the United States of America) and such other documents and instruments as may be necessary f o r the Corporatfon t o consummate the sale of the Property a t the highest and best p r ice obtainable, e i t h e r in its damaged condition, or a f t e r damaged s t r u c t u r e s have been razed. Such ce r t i f i ca t e sha l l be conclusive evidence of stlch authority fo r any Person relying thereon i n good fa i th . The ne t proceeds of such s a l e and the proceeds of any insurance c= 'e8 ty the Corporati on s h a l l be divided proportionately amc.., .e Owners, such proportions t o be determined in accordance with the r e l a t i ve appraised f a i r market valuation of the Condominiums a s of a da t e immediately pr ior t o such destruction, (or condemnation), expressed as percentages, and computed by dividing such appraised valuation of each Condominium by the t o t a l of such appraised valuations of a l l Condominiums i n t h e Project. The Board fs hereby authorized to hi re one (I) or mare appraisers f o r such purpose and rhe cas t of such apptaisaLs shall b e a Common Expense o f tbe Corporation, NotwAthstanding the Eo~egolLng, the baZanoe then due on any valid encumbrance of record sha l l be f i r s t paid i n order of pr ior i ty , before the d i s t r i b c t i o n of any proceeds to an Owner whose Condominium is so encumbered. Nothing herein sha l l be deemed t o prevent parCit ion of a cotenancy in any Condominium. Except a s provided above, eacb Owner and .the successors of eacb Owner, whether by doed, g i f t , devise, o r by operatio,? of law, for t he i r own benefi t and f o r the Units and for the benefit of all other Owners, specif ical ly waive and abandon a l l r i gh t s , i n t e r e s t= and causes of action f o r a judicial par t i t ion of the tenancy in common ownership of t h e Project and do fur ther covenant *hat no action f o r such judicial par t i t ion sha l l be i n s t i t u t e d , prosecuted o r reduced t o judgment-

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10.3. f n t e r i o r Damage. With the exception of any casualty or damage insured a g a i n s t by the Corporation pursuant t o Art ic le IX , Section 9.1 of this ~ecla*at;ion, r e s t o r a t i o n and reps i r of any damaqe to the i n t e r f or of any individual ~esidence, including without l imitat ion a l l f i x t u r e s , cabinets atrd Lmprovements therefn, together with r e s to ra t ion and repair of a l l inter ior pa in t , wall coverings and floor coverings, sha l l be made by and a t t h e individual expense of t h e Owner of the Residence so damaged. In t he event of a determination t o rebuild the Property a f t e r p a r t i a l o r t o t a l destruction, as provided i n t h i s Art ic le X, such i n t e r i o r repair and restoration s h a l l be completed as promptly as pac t i caX and i n a lawful and workmanlike manner, in accordance with plans approved by the Architectural Committee a s provided herein.

EU -4'. ' ' Not itFt tb Owxiers. and LTGt'ed Korf QaqeFs . The Board. immediatelv upon having knowledae of any damage o r destruction affecting- a h a t e r i a l portion og the cobon

- Property, sha l l promptly no t i fy a l l Owners and Beneficiarf es, insurers and guarantors of f i r s t Mortgages on Condominiums i n t h e Project, who have f i l e d a written request fo r such n o t i c e with the Board. The Board, immediately upon having knowledge of any damage or des t ruc t ion affecting a Unit, shall promptly not i fy any Benef i o i a ry , insurer or guarantor of any Mortgage encumbering such Unit who has f i l e d a written request for such notice with the Board.

ARTICLE XI

11.1. Def in i t ions . The term "taking" as used i n t h i s Ar t ic le sha l l mean condemnation by-exercise of power of eminent domain or by sale under t h r e a t of the exercise a f t he pawer of eminent domain. A "Total Taking" sbalL accur if %here is a pennauent taking by em-inent domain of an interesk i n a l l o r p a r t of the Common Area o r of a l l or p a r t of one (1) or more Units, such t h a t the ownership, ope ra t ion and use of the Project i n accordance with the p rov i s ions of t h i s Declaration is subs tan t ia l ly and adverse1 y affected, and within one hundred twenty (120) days a f t e r the ef fec t ive date of the taking the Owners of any Units ( a ) not taken, or ( i f ) only part ia l ly taken and capable of be ing restared t o a t l e a s t ninety-five percent (95%) of t h e i r f l o o r area and t o substantially t h e i r condition pr ior to t h e tak ing (col lect ively t h e "Remaining Units"J do not by a f f i rma t ive vote of a majority of t he i r e n t i r e voting i n t e r e s t (without adjustment among suct. Uni t s f o r r e l a t i ve voting r i g h t s because of such pa r t i a l taking) approve the cont inuat ion of t h e Project and the repair, restorat ion and replacement to the extent feasible of t he

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pi. sxa l I. bccui- i f there ̂ is' any' other 'permanent- %ak'c%g of the P r o j e c t . A Par t ia l Taking sha l l include, without l imitat ion,

- . a . !'.Special .Par;tial ..Tak.ing~ which. is .dase&bed-.herein as- a. t a k i n g of all or pa r t of one (1) or more Uni t s , as Units, subj cct t o a l l of the provisions of t h i s Declaration, without involving any taking of the Common Area except t o the extent of the proportionate i n t e r e s t therein of tho Uni t s taken, so t h a t t h e thking authori ty becomes a successor in t i t l e to the Owner or Owners of the Condominium or Condom.i.niums so taken with t h e same e f f ec t a s i f such Units were purchased by t h e t a k i n g authority. Following any taking which i n t h e oplnion of Ule Board of Directors would comt i tu te a To ta l Taking i n t h e absence of the affirmative vote of the Owners o f t h e Remaining Units as required by the foregoing provisions, the Board o f Directors s h a l l c a l l a special meeting of Owners of t h e Remaining Units t o be held promptly, and i n any event w i t h i n s ixty (60) days a f t e r the effective date o f such t ak ing , t o determine i f such Owners of the Remaining U r i t s , w i l l o r w i l l not, decide t o continue tbe Project as provided h e r e i n . .. - , .

11.2. Awards: Repair; Restoration and Replacement.

(a ) In the event of a Total Taking, the Board of Directors shall: ( i ) except as provided i n Sect ion 11.3, represent a l l of the Owners (w i th the exception of t he AdminPst~ator of Veterans Af fa i r s , an off icer of .Ishe United States of America), i n an ac t ion t o recover any and a l l awards, subject t o t h e r i g h t of a l l f i r s t Mortgagees of record, upon request , t o join i n the proceedings, [ i i ) proceed w i t h the sa l e of t h a t portion of the Project which was not included i n the condematicn proceedings and d i s t r i bu t ion o f t h e net proceeds o f such s a l e a f t e r deducting any incidental fees and exgenscs, i n t h e same proportion and i n t h e same manner as provided i n Article X, Section 10.2, atid (iii) d i s t r i b u t e t h e condemnation award i n accordance with the c o u r t judgment or the agreement between the condemning au thor i ty and the Corporation, i f any, o r if t h e r e i s no such judgment 06 agreement, in accordance w i t h A r t l c l e X, Section 10.2 of t h i s Declaration.

tb) In the event of a 1 a r t i a l Taking, other than a Special Pa r t i a l Taking, the provisions o f Sect ion 11 .2(a) ( i ) of t h i s Article shall be aapl icable . The n e t proceeds of the Part ia l Taking awards sha l l be held by the Board of Directors, a E t e r deducting related fees and expenses and t h e por t ions of the awards a l lo t ted i n the taking proceedings or, f a i l i n g such allotment, a l l o t t e d by

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t h e Board o f ~ i r e = g o r s t b (A) ~ n i & iof5alli, takeh o r p a r t i a l l y taken and not capab le of being res tored t o :$eF*E+& ;g@-g;?l~;~;~. $g~~~;;G%${gkc~~f~ taking, and (ii) Units taken i n t h e same manner a s in a Special P a r t i a l Taking e x c e p t tha t t h e taking i s made subject t o only aome o r t o none of t h e Restr ic t ions gcollectivaly B h o "Taken Units").

The proceeds of the Partial Taking sward a l l o t t e d t o t h e Taken Units s h a l l be paid t o the Owners of t h e Taken Units; providad, however, t h a t such proceeds s h a l l f i r s t be app l ied t o t h e balance then due on any Mortgages of record i n order of p r i o r i t y before t h e d i s t r fb r r t ion of any such proceeds t o any Owner whose Condominium is subject t o ariy such hortgage. F i r s t Mortgagees of record with respect t o t h e Remaining Uni t s affected by such P a r t i a l Takinqr shall. be e n t i t l e d t o severance gppgps ~ a y ; S & e ouf: of Che. award proceeds held bx t h e Board sf Directors t o t h e e x t e n t tha t such Mortgagees can prove tha t t h e i r secur i ty has been impaired by such taking. The balance of t h e net proceeds s h a l l then be appLied t o t h e repair , r e s to ra t ion and replacement of t h e Common Property and t h e Remaining Units (but not Owners' personal property nor those portions of the Units which the Owners a re obligated t o r e s t o r e ) t o as nearly t h e i r condition p r i o r t o the taking as may be feas ib le , i n t h e same manner and under the same provisions applicable t o &&e proceeds o f insurance a s set f o r t h i n Ar t i c le X, Section 10.1 h e r e o f , except f o r any provisions r e l a t i n g t o Owners ' personal property. Any funds held f o r r e s t o r a t i o n by t h e Board of Directors following completion thereof s h a l l be disposed of , in each case i n the same manner as provided i n A r t i c l e X, Sec t ion 10.2, except t h a t t h e t o t a l amount of t h e award payab le t o any Member and h i s mortgagee o r mortgagees for a destroyed Unit o r Uni ts s h a l l not: exceed t h e value of said Kenhbr's Condominium i n t e r e s t .

If t h e funds held f o r r e s t o r a t i o n by t h e Board of Directors are l e s s than t h e c o s t of r es to ra t ion and repair , a Reconstruction Assessment of t h e Owners of the Remaining Units (determined w i t h reference t o t h e r e l a t i v e s q u a r e foot f loor areas of t h e Remaining Units, as r e s t o r e d ) may be levied by t h e Board of Directors t o p r o v i d e t h e necessary addi t ional funds f o r such reconst ruct ion. In no event s h a l l t h e Board of D i r e c t o r s be required t o undertake any r e p a i r or r e s t o r a t i o n work o r make any

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~jayments' w i t h r e s p e c t t o S y Unit 16 exioss of t h a t por t ion of t h e awards reasonably a t t r ibu tab le t o tho l o s s t o tha t Unit. Following any Par t i a l Tdcing, t h e Corporation and t h e Project s h a l l continue, sub jec t t o and with the benefic of a l l the provis ions of t h i s Declara t ion, so f a r as appl icable t o t h e Remaining U n i t s , and t h e voting i n t e r e s t s of t h e Owners s h a l l be the same.

( c ) In t h e e v e n t of s Special P a r t i a l Taking or a temporary t a k i n g of any Condominium, t h e Owner o f t h e Condominium t a k e n , together with h i s mortgagees, s h a l l have exclusive r i g h t s t o prosecute t h e proceedings f o r %he respective taking awards and to r e t a i n the proceeds thereof . In t h e event of a temporary taking of Common Area, t b e Board of Directors sha l l haye qxclus%ve r i g h t s to prosecuts t h e proceedings f o r t h e respective taking awards andl s h a l l apply the proceeds thereof t o reduce Common Expenses.

11.3. Owners' Awards. Where a l l o r pa r t of t h e Pro jec t is taken by eminent domain, each Owner s h a l l have t h e exclusive r i g h t Lo c l a i m a l l of the award made f o r such Owners' personal property, and any re loca t ion , moving expense, o r other allowance of a s i m i l a r n a t u r e designed t o f a c i l i t a t e relocation. Notwithstanding t h e foregoing proviaions, however, o r the provisions of Sec t ions 11.1 and L1.2, the Board of Directors, except in t h e case o f a Special P a r t i a l Taking, shalZ represent each Owner i n an act ion t o recover al l awards with respect t o such por t ion , i f any, of an Owner's personal property which is a t the t ime of any taking, as a matter of law, pa r t of t h e r e a l e s t a t e comprising any U n i t , and shall al locate t o such O w e : so much of any awards as is a l l o t t e d i n t h e taking proceedings or, f a i l i n g such allotment, a l l o t t e d by t h e Poard of Dfrhstors t a such Owner's personal property. The amouzt s o a l l o c a t e d ghall be paid t o t h e Omex- e n t i t l e d the re to , wh@Mref o r not the Unit i n which such CIimerfa personal proper ty was located is to be res tored by the Board o f Directors ; provided, however, tfrat such proceeds shall . f i r s t be appl ied t o the balance t h e n due on any Mortgitges c.f record ennznbering such Omer ' s Condominium, i n order of pr. ,ori ty . Notwithstanding r e s t o r a t i o n o f the Unit, t h e Board o.? D i r e c t o r s s h a l l have no r e s p o n s i b i l i t y for res to ra t jon of such Owner % personal p r o p e r t y .

11 -4 . Rellinquishment of I n t e r e s t ia Common Area. Each O w n e r of a Taken U n i t i n any Phase 9Z !2evelopment, by h i s acceptance of the award a l l o t t e d t o him in a t ak ing proceeding o r by the Board a s a reps:? of a P a r t i a l Taking ( o t h e r than a Special P a r t i a l Tak~ng) , hereby re l inqu i shes to

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'I

t&e other Owners in such Phase of Development, on t h e baeia - of. their. . ralative okmersbip of. the Common -Area. t he re in , such O w n e r ' r undivided i n t e r e s t in the Common Area and t h a t po r t ion , if any, of such Owaer's U n i t which was not taken by the condemning authority. Each Owner of a Taken Uni t sha l l not be l i a b l e for assessments under this Declarat ion which accrue on o r a f te r the date o f acceptance by such Owner of the por t ion of the condemnation award a l lo t ted t o him. Each Owner ralinquishinq h i s interest i n the Common Area pursuant t o this Section shal l , a t the request of t he Board and at the expense of the Corporation, execute and acknowledge such desds and other instruments which the Board deems necessary or convenient t o evidence such relinquishment.

1L. 5 . Notice t o Owners and Listed Mortgagees. The Board of Directors, immediately cpon having knowledge of any t a k i n g by eminent domain affect ing a mater ial por t ien of the Common Property, o r any threa t thereof, s h a l l promptly n o t i f y aL1 mers and those Beneficiaries, i n s u r e r s d guarantors of f i r s t Mortgages on Condominiums i n the Prof ect who have f i l e d a wri t ten request f o r such no t i ce w i th the Board. The Board, immediately upon having knowledge of any taking by eminent domain affecting a Unit, or any t h r e a t t h e r e o f , should promptly notify any Beneficiary, i n su re r or guarantor of s Mortgage encumbering such Unit who has f i l e d a written request for such notice with the Board.

11.6. Condemnation of Corporation Proper ty . X f at any time, all o r any portion of t he Corporation Property, o r any i n t e r e s t therein, is taken f o r any public or quasi-public use, under any statute , by r i gh t of eminent domain or by private purchase i n l i e u of eminent domain, the award i n condemnation s h a l l be paid t o the Corporation. Any such award payable to tbn Corporation sha l l be deposi ted i n the Operating Fund. No Member s h a l l be e n t i t l e d to p a r t i c i p a t e as a party, or otherwise, in any proceedings r e l a t i n g to such condemnation. The Corporation s h a l r have t W exclus ive right to part ic ipate in such proceedLngs and shall, in its name alone, represent the interests of all Membots .

ARTICLE XI I

12. Rights of Mortgagees. N~twi tbs tandlng any other provision of t h i s Declarat ion, no amendment o r violation af th i s Declaratian shal l opera te t o d e f e a t o r render invalid t i e rights of the Beneficiary under any Deed o f Trust upon a Condominium made i n good f a i t h and for value , provided t h a t a f te r the foreclosure of any such Deed of Trust such Condomfnium s h a l l remain subject t o t h i s Declarat ion, as amended. For purposes of any provis ion of t h i s Declaration or t h e other Restr ic t ions which require the

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vote* OF apprav~ l 001 % ' s@eciwie~'p6r&exitage of Ei rst Mortgagees, such vote approval sha l l be determined based upon one (1) vote f o r each Conciominfum encumbered by each such f i r s t Mortgage. In order to induce FHIXC, G W , F29rlA, VA m d FHA to par t ic ipa te in the financing of the sa l e af Condaminiums within t h e Project. the following provisions are added hereto (and t o t h e e x t e n t these added provisions, pertairring t o t h e r i g h t s of Mortgagees, l?IiLMC, FNMA, G M A , VA and FHA confl ic t w % t h any o t h e r provisions of this Declaration cr any other of t h e Restrictions, these added res t r ic t ions shall, control ) :

(a) Each Beneficiary, insurer rrnd guarantor o f a first Hartgaga encumbering any Condominium, upon filing a wr i t ten requeat f o r notification with the Board, f a e n t i t l e d to written not i f icat ion from Ule Corporation of any defaylt .by +he;.Mortgagox: o-f such CondominXum i n the performance of such Mortgagor' s ob l iga t ions under the Restrictions, which default Is not cu red within t h i r t y (30) days a f t e r the Corporation l e a r n s of such default . For purposes of t h i s Declara t ion , " f i r s t Mortgage" sha l l mean a Mortgage with fire+ pr ior i ty over other Mortgzges or Deeds of Trust on a Condominium, and n f i r s t Mortgagee" sha l l . mean the Beneficiary of a first Mortgage.

(b) Every Owner, including every f i r s t Mortgagee of a Mortgage encumbering my Condominium, who obtains t i t l e t o such Condomin5um pursuant t o the remedies provided i r z such Mortgage, or pursuant t o foreclosure o f ths! Mortgage, or by deed (or assignment) i n l i e u o f foreclosure, shal l he exercpt from any " r igh t af first refusa lR created or purported t o be crea ted by t h e Restrictions.

(c) Each E f r s t M~rtgagee of a Mortgage encumbering any eondornha-ium, whicb obtains t i t l e t ; ~ such Condominium, pursuaht to judic ia l foreclosure or t h e powers provided Sn such Mortgage, shal l take title to such Condominium free and clear o f any clafms for unpaid assessments o r charges againnt: such Condominium which accrued prior t o the time such Mortgagee acquires t i t l e t o such Condominium i n accordance with Section 5.10.

(d) Unless a t l e a s t sixty-seven percent (67%) of t h e first Mortgagees o r sixty-seven percent (67%) of t h e Owners (other tharr Declarant) have given their prior wri t ten approval , neither the Corporation nor the O w n e r s sha l l :

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( 2 ) change the method of d.etemnininq -the- ~bl'iqa.t.ionS,'-Gsessment: dues o r other charges which may be lev ied against any Owner; or

(3) par t i t ion o r subdivide any Condothinium U n i t ; o r

(4) by act or omisliion, seek to abandon, parti t ion, subdivide, enccmber, sell or transfer the Common Property. (The granting o f easements f o r pub1 ic uti l i tZes or fo r other purposes c o n s i s t e n t with the intended use of the Common Property under this Declaration shall n o t be deemed a transfer w l t h i n the meaning of this clause); or

. - (5.) ,by act or b5nission change, waive or abandon any scheme of regula t ions , or enf arcemen-t: thereof, p e r t a i n i n g to the architectural design, the ex te r io r appearance or t he maLntenance of the Units or t he Common Property; or

(6) f a i l t o maintain or cause to be maintained Fire and Extended Coverage insurance on insurable Common Area a s provided in Article EX of t h i s Dec la ra t i sn j or

C7) use hazard Insutancr proceeds f o r l o s se s t o any condominium proper ty ( i . e . , fmprovemenfzs t o the Units or Common Property) f o r other than t h e repair, replacement or reconstruction of such coadomir&um property, subj ect t o the provisions a f Article X of this DecLaraeion; or

(8) change t h e pro r a t a i n t e r e s t o r ob l f gations of any Condominium i n o r d e r t o levy assessments o r charges, a l l o c a t e d i s t r i b u t i o n s of hazard insurance proceeds o r condemnation awards or determine the pro r a t a share of ownership o f each Condominium i n the Common Area.

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(el A 1 3 Beneficiaries , insurers and ~~~~~~~s of ' Ei'rst 'M6rt'qages, "upon'3ut'Ttten' reqtlest , shl l have the r igh t t o (1) examine t h e books and records of t he Corgoration during normal business hours, (2) require from the Corporation the submission of an annual audi ted financial statement ( the expense of preparation o f such statement to be borne by the en t i t y requesting such statement i f such statement is not otherwise prepared by the Corporation) and other f i n a n c i a l da t a , (3) receive written notice of a l l meetings of t h e Owners, and (4) designate i n urritlng a representa t ive to attend a l l such meetings.

( f ) A 1 1 Iienof iCf Brieb, i n s u r e r s and guarantors of f i r s t Mortgagees, upon written request, sha l l be given t h i r t y (30) days' written notice pr ior t o the ef fec t ive date of (1) any prbpbkea matCrial* &eneridiirenk 'to t h d R e s f rictions o r Condominium Plans; (2) any terminat ion of an agreement for professional manaqement of the Property following any decis ion of the Owners t o assume self-management of the Pro jec t ; and ( 3 ) any proposed termination of the Property as a condominium project.

(g) The Reserve Fund descr ibed in Article V of t h i s Declaration must be funded by regular scheduled monthly, quarterly, or semiannual payments rather than by large special assessments.

(h) The Board s h a l l secure and cause t o be maintained in force a t a l l t i m e s a f i d e l i t y bond f o r any Person handl inq funds of the Corpor atf on, including, but not l imited to, employees of the professional Manager.

( i ) In addition to the f p??ego%ngi, the Baard may enter in to such contracts or agreements on behalf of the Cotporat%vn a s are required in order t o s a t i s fy the guidelines of WA, FHA, FHLNC, FNt-E't o r GNMA or any s imilar en t i ty , so as t o allow for the purchase, guaranty or inscrance, as the case may be, by such e n t i t i e s of f i r s t Mortgages encumbering Condominiums. Each Owner hereby agrees that it w i l l benefit the Corporation and t h e membership of t he Corporation, as a class of p o t e n t i a l Mcrtgage borrowers and potent ial s e l l e r s of t h e i r residential Condominiums, i f such agencies approve the Property as a qualifying subdivision under t h e i r respective policies, rules and regulations. as adopted from

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time t o time. Mortqagees are hereby authorized t o Eurnish . infermatian t o the-.Beard concerning. the s t a t u s of any Mortqaqe encumbering a Condominium.

(j) Each Onner hereby authorizes the f i r s t Mortgagee of a f i r s t Mortgage on his Condolninium t o furnish infbrmatfan t b the Board conterning the s t a t u s of such f i r s t Mortgage and the loan which it secures.

(k) When professional management has been previously required by a Beneficiary, insurer, or guarantor o f a f i r s t Mortgage, any decision t o establish s e l f -management by the Corporation shall. require the approval of sixcy-seven percent (67%) of the voting p o w e r of the Corporation and t h e BeneEiciarf e s o f f ifty-one percent (51%) of the f i r s t Mortgages of Condominiums in the Prod ect. . a

(1) A l l intended Improvements in any Phase of Development other than Phase 1 sha l l be subs tan t ia l ly completed or the completion of such fmprovements sha l l be secured by a bond or other arrangement acceptable t o the DRE pr ior t o the f i r s t Close of Escrow for the sa le of a Condominium in such Phase.

(at) F i r s t Mortgagees may, jointly or singly, pay taxes o r other charges which are in default and which may o r have become a charge against any Common Property and may pay any overdue premiums on hazard insurance pol ic ies , or secure new hazard fnsuranca coverage on t h e lapse of a policy, fo r Common Property, and Ff rs t Martgagees making such payments sha l l be owed immediate reimbursement therefor from the Corporation.

13. Buratian. and Amendment.

13.1. Duration. This Declaration sha l l continue i n f u l l force for a term of f i f t y (50) yeaxs from the date of Recordation hereof, a f t e r which t i m e t h e same shall be autcmatically extended fo r successive periods of ten (10) years, unlesa a Declaration of Termination is Recorded, sat isfying the requirements of an amendment t o t h i s Declaration as set forth i n Section 13.2. There s h a l l be no severance by sale, co,iveyance, encumbrance o r hypothecation of an in te res t i n any U n i t from the concomitant MembershXp i n the Corporation, as long as t h i s

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- . DecLard-on sha l l . continue.?in -fuIJ- force and eff ectz. . me - proviaiona of t h i s Ar t ic le are subject to the provisions of Sec t ions 10.2 and 11.2 of t M s Declaration.

13.2. Amendment. -

(a) Notice of the subjec t matter of a proposed amendment t o t h i s Declaxation in reasonably de ta i led form s h a l l be included i n the notice of any meeting or e lec t ion of the Cotporaticn a t which a proposed. amendment is t o be considered. The resolut ion s h a l l be adopted by t h e vote, in person o r by proxy, o r written consent of Members representing not; less than ( i ) sixty-seven percent (6?%) of the voting power of the Corporation, and ( a x ) sixty-seven percent: (67%) of t h e voting power of the Corporation residing i n Members other than Dec-larat provided- thae ehe- specif5ed .percentage' of t h e voting power of the Corporation necessary t o amend a specified Section or provis ion of thfs Declaration s h a l l not. be less than the percentage of affirmative votee prescribed for act ion to be taken under tha t Section or provision. So long as there e x i s t s a Class 8 membsrship, tfio p r i o r approval of VA and FHA s h a l l be required f o r any amendment af t h i s Declaration. A draf t of the proposed amendment s h a l l be submitted t o VA and FHA f o r approval p r io r to i t s approval by the Membership of the Corporation.

(tj In addition t c the r e q u i t e d notice and consent of VA, FHh, Members and Declarant provided above, the aenef iciari es of f i f ty -one percent (51%) of t h e f i r s t Mortgages on a l l the Condominiums in t h e Project must approve any amenhent to t h i s Declaration which i s of a mater ia l nature, a s f ollaws:

i ) Any amendment; which afzects o r purports t o a f fec t the v a l i d i t y o r pr ior i ty of encumbrances o r the r i g h t s o r protection granted to Beneficiaries, Lnsurers or guarantors of f i r s t Mortgages as provided in ArticLes V, I X , X, XI, XI I and XZ XI hereof.

( i i ) Any amendment which would necessi ta te an encumbrancer a f t e r i t bas acquired a Condominium through foreclosure t o pay more tban i ts proport icnate ahare of any unpaid assessment or assessments accruing af te r such foreclosure.

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(iii) Any amendment which would or could resul t in an encumbrance being oancelled by f arfeiture, or in a Condominium not being separately assessed for tax purposes.

( iv) Any amendment relrrtfng t o t h e insurance provf s i o n s as s e t out i n Art ic le IX hereof, or to the application o f insurance proceeds a s s e t ou t i n Art ic le X hereof, or t o the disposi t ion of any money received in any ta lks9 under coiideinhation proceedings.

(v) Any amendment which would o r could resul t i n par t i f ioz) or_sybd3iy$figon of a eohd6rniniiiin ~ i % P t : i n &y manner inc6%i'stent with the provis ions of t h i s Declaration.

(vi) Any amendment which would subject any Owner t o a t i g h t of f i r s t refusal or o"&er such r e s t r i c t i o n , if such Condominium is proposed t o be so ld , transferred, or otdaerwise conveyed.

( v i j ) Any amendment concerning:

(A) Voting rights;

(B) Rights t o use the Common Property;

(C) Reserves and r e spons ib i l i t y f o r maintenance, repair and replacement of the Common property ;

(D) Bomdarl'es 63 Unit 2

(E j Owners' interests in t h e Co~??lon Area;

(F) Convert ibi l i ty of Common Area i n t o UnlCs or Units i n t o Common Arean

(G) Leasing of Units;

(H) Establishment of self- managesent by t h e Corporation where prof ass f onal management has been requjrred by any Beneficiary, insurer o r guarantor o f a first Mortgage;

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( I ), Annexat ion o r deannexation of real property to o r from t h e Property; or

(J) Assassments, assessment liens, or t k e suhordircation of s u e liens.

(c) Termination of th i s Declaration s h a l l r e q u i r e approval by the Members as provided b subsection (a) of t h i s Section 13.2. No such termination shall be efzective unless it i s a l s o approved i n advance e i ther by f i f ty-one percent (51%) of the Beneficiaries of the f i r s t Mortgages on all of me Condominiums in the Project ( i f s a i d termination i s proposed by reason of t h e s u b s t a n t i a l des t ruc t ion o r c o n d e m ~ a ~ o n oE t h e -Prof ec-tJ- o r by s ixty-seven percent (67%) of such Beneficiar ies ( i f s a i d termination is f o r reasons other than such subs t an t i a l destruction o r condemnation) .

(d) Each Beneficiary of a f i r s t Mortgage on a Condominium i n the Project which receives proper w r i t t e n notice of a pcoposed amendment or- termanation of t h i s Declaration by c e r t i f i e d o r r eg i s t e r ed mail with a return receipt requested s h a l l be deemed t o have approved the amendment o r termination i f LZe Beneficiary f a i l s t o submit a response t o the notice within t h i r t y (30) days a f t e r t h e Beneficiary receives t h e notice.

( e ) A copy of each amendment s h a l l be c e r t i f i e d by a t l ~ a s t two (2) of f icers of the Corporation, and the amendment sha l l be e f f e c t i v e when a Certificate af Amendment is Recorded. The CsrtAf h t e , signed and sworn to. by two (21 o f f i c e r s o f the Corporation t h a t the requisi te number of QiKners. and. mortgagees. have either- voted Sor o r consented in writing t o any amendment adopted as provided above, when Recorded, sha l l be conclusive eviderce of that fac t . The Corporation s h a l l maintain in i t s f i l e s the record of a l l such v o t e s o r written consents f o r a period of a t l e a s t f o u r (4) years.

13.3. Protection o f Declarant . Until the sevenrh (7th) anniversary of the f i r s t Close of Escrow f o r a sale of a Condominium i n the Project , t h e p r i o r w r i t t e n approval of Declarant, as developer of t h e property, w i l l be required before any amendment which would impair o r diminish the rights of Declarant t o complete t h e Property o r

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-- " 5011 or feale'C6naoniXnituirs f l i e E G i a i n accordince C i s t h i s Declaration sha l l become e f f e c t i v e . Notwithstanding any other provisions of t h e Res t r i c t i ons , u n t i l such time as (i) Declarant is no longer en t i t l ed to add 8-nnexable Ter r i tory t o the Property without the consent of the Garparatian pursuant t o Section 16.1, or (Xi) Declarant no longer owns any Condominiums in the Property, whichever occurs Last, the f ollowing actions, before being undertaken by the Corporation, shall. f i r s t be approved i n writing by Declarant:

(a) Any amendment o r a c t i o n requiring the approval of f i r s t Mortgagees pursuant t o t h i s Declaration, including without l imitation a l l amendments and actions s p e c i f i e d i n Sections 13.2;

(b) The annexation to t h e Property of r e a l property otlxer. thaq the @nexable Terx i t~xx pursuant t o Section 16.2;

( c ) The levy of a C a p i t a l Inproventent Assessment f o r the cons t ruc t ion of new f a c i l i t i e s not constructed on the Common Property by Declarant; o r

(dl Subject t o Sect ion 5.4 regarding limitations on- Annual Assessment incseases; any significant reduction of Corporation maintenance or other services.

13.4. Approval of C e r t a i n Actions by Count . Notwithstanding anything herein +o the catitrary, so lsng a s any portion of t h e Project is n o t located within the boundaries of an incorporated city, no amendment or agreement: purporting t o terminate or modify t h e maintenance o r sonar heat ing ins ta l la t ion provisions of the Declaration shaln take e f f e c t un t i l f i f t een (IS) days fol lowing the mailing o f written nbtice thereof, ~ e t u r b r e c e i p t requested, to tlie Assistant Director, EMA-Begulatiotz and the County Counsel, Wd' %he f a i l u re by the Assist'Snt D i r e c t o r or County Coksel t o fndicate h i s disapproval during such period to such amendment o r agreement. Disapproval s h a l l be based upon whether such property w i l l cont inue t o enjoy adequate provision fo r p r~se rva t ion and maintenance of vehicular and pedestrian access r ights of Owners and of a l l Improvements and physical f a c i l i t i e s , such as Landscaping, walls, fencing, buildings, hydrants, u t i l i t y f a c i l i t i e s , parking areas , f load l i g h t s , drainage f a c i l i t i e s , and recrea t iona l f a c i l f t i e s , i f any, and whether such property will continue to comply with the conditions of approval of any applicable ten ta t ive t r a c t map.

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14. Enforcement of Certain Bonded Obligation.

14.1. Considerat ion by Board of Directors. I f (1) t h e Improvements t o be located on the Common Property a r e not completed p r i o r t o the issuance of a Final Subdivision Public Report by t he DRE f o r the s a l e of Condominiums i n the ~ k o j ect; and (2 ) the Corporation is obligee under e bond o r o t h e r arrangement ("Bond") required by the DRE t o secure performance of t he commitment of Declarant t o complete such Improvements, the Board of Directors af the Corporat ion s h a l l consider and vote on the question of act ion by the Carporation t o enforce the oblzgations under t h e Bond, with respect t o any such Improvement f o r whfch a Notice of Completion has not been Eiled. w&thin. sixty (60%) days. after the- completion date- . specified for t h a t Improvement i n the Plannad Construction Statement appended t o the Bond. I f the Corporation has g i v e n an extension i n writing for the completion of any Improvement on khe Common Property, t h e Board shall be directed t o consider and vote on the aforesaid queation ( i f a Notice of Completion has not been f i l e d ) , within t h i r t y (30) days a f t e r t he expiration o f t h e extenrion.

14.2. Cons i d e r a t i o n by the Members. A special meeting of Members, f o r the purpose of voting t o override a decision by t h e board not to i n i t i a t e action t o enforce t h e obl iga t ions under t he Bond or on the failure! o f the Board t o consider and vote on the question, sha l l be h e l d no fewer than thiz-l-y-f ive (35) days nor more than for ty- f ive (45) days a f t e r r e c e i p t by +tie Board of a pe t i t i on for such a meeting signed by Members representing f ive percent (5%) of the to ta l voting power of t h e Corporation residing in Members other than Declarant. A vote at such meeting t o take ac t ion t o enforce the ob l iga t ions under the B ~ n d by Memhers representing a maf ority of the t o t a l voting power of the Eorporat;ian zp~idislg. in Xemliera other WIan DecLarant shall be deemed to be t h e d e c i s i o n of the Corporation, and the Board sha l l thereaf te r implement t h i s decision by in i t i a t i ng and pursuing appropriate a ~ t ~ o n i n the name of the Carporation,

ARTICLE XV

15. Gerieral Provis ions .

15.1. Legal Proceedings. Failure t o comwly with any of the terms of the Restrictions by an Owner, h5s-family, &zests, employees, invi tees or tenants, sha l l be grounds f o r re l ie f which may include, witbout l imi ta t ion , an a c t i o n t o recover sums due for damages, injunct ive r e l i e f , foreclosure of any l i en , o r any

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S " cambination therrdf. ' Failur'e t o erifbrce arzjl prcriiisl'cjn herebf s h a l l not const i tute a waiver of the r ight t o enforce t h a t provis ion , o r any other provision hereof. The Baard, any Owner ( n o t a t the time in default hereunder), the Board of Directors of SiWLARC, the SAMLAEZC Architectural Committee, or Declarant ( s o long as Declarant is an Owner) sha l l be e n t i t l e d to bring an action for damages against any d e f a u i t i n g Owner, and in addition may enjoin any v i o l a t i o n of t h i s Declara t ion . Any judgment rendered in any a c t i o n or

rat ion sha l l inc lude a sum proceeding pursuant t o t h i s Decla.. for a t t o r n e y s fees i n such amount a s the Court may deem reasonable, i n favor of the prevailing party, as w e l l a s the amount of any delinquent payment, in te res t thereon, cos t s of c o l l e c ~ i o n and court costs. Each remedy provided for i n this Dec la ra t ion sha l l be cumulative and not exclus4ve o r exhaust ive. Each h e r sha l l have a r ight of ac t ion against t he Corporat ion for the, fa i lure by :he Corporati on t o comply kit% &e kesti-Xctihns.

15 -2. Violation of Restrictions. Without i n any way limiting the generality of t h e foregoing, i f t h e Board of Directors determines tha t there is a v i o l a t i o n of any provision of t h i s Declaration, o r the A r c h i t e c t u r a i Committee determines t h a t an Improvement which is t h e maintenance responsibility of an Owner is in need of i n s t a l l a t i o n , repair, restoration or painting, then t h e Board s h a l l give written notice t o the responsible Owner o f t h e condi t ion o r violation complained of. Unless the A r c h i t e c t u r a l Committee has approved i n writing co r r ec t ive plans proposed by the Owner t o remedy the condition complained of within such period of tlme as may be determined reasonable by the Board a f t e r it has given sa id w r i t t e n not ice, and such corrective work so approved i s completed t h e r e a f t e r within the time allotted by the Board, t h e Board, a f t e r N o t l c e and Hearing, shall undertake t o remedy su-3 cand i t i on o r violation complainec? of, and the cost thereof s h a l l be charged ta We Ovmrer ant3 his Candominiuii -mse Residence 5s t h e subject matter af the correcttve work. Such cast- s k r a l l be desuied t o be a' Sp3cPal kssesbmdnt €0 sucIi OWer and s h a l l be subject to enforcemen% and col lect ion by tho Board in accordance with the procedures provided f o r i n t h i s Declara t ion . The Board may also adopt, a schedule o f r ea sonab le fines ar penalties which, i n its reasonable d i s c r e t i o n , it may assess against an Owner f o r t he f a i l u r e of such Owner, o r of a resident of or v i s i t o r t o such Owner's Unit, t o comply with any provision of the Res t r ic t ions . Such f i n e s o r pena l t i e s may only be assessed by the Board a f t e r Notice ar~d Hearing.

15.3. Severabilit . The p r o v i s i o n s hereof sha l l ge deemed independent and severable , and a determination of invalidity o r p a r t i a l

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- - invalf U i t y or, unenf&rcea&ilitjf bf any one prijvisibtl o r port ion hereof by a court of competent jur isdict ion sha l l not a f f ec t t h e validity o r enforceabi l i ty of any other provisions hereof.

15.4. fnterpretat lon. The provisions of t h i s Declaration s h a l l be l iberal ly construed to effectuate f t s purpose o f creatinq a u n f f o m plan f o r the creation and operation of a resident ial condominium development and f o r the maintenance of Common Property, and any violat ion o f this Oeclaration sha l l be deemed t o be a nuisance. The Article and Section headings, t i t l e s and captions have been inser ted f o r convenience only, and s h a l l I I O ~ be consiaered' o r ref e r r ed to i n resolving questions of interpretation o r construction. As used herein, the singular sha l l include t h e p lura l and the masculine, feminine and neuter s h a l l each inelude t h e other, unless the contskt dT&ktes atherniisl.

15.5. Mergers or Consol ida t ions . Upon a merger ox: consoLidation of t h e Corporation with another association, i t s propert ies , r i g h t s and obligations may, by operation of law, be t ransfer red t o another surviving o r consolidated association o r , a l te rna t ive iy , the propert ies , rigbts and obligations of another association may, by operation of law, be added t o the properties, r igh ts and obligations of the Corporation as a surviving corporation pursuant t o a merger. The surviving or consoiidated corporation may administer and enforce the covenants, conditions and r e s t r i c t i ons establ ished by this Declaration governing the Property, together with the covenants and r e s t r i c t i ons established upon any o the r property, as one (1) plan. Any such merger or corlsolidation s h a l l require t he p r i o r written approval of VA.

15.6. Use of Recreational F a c i l i t i e s , The Board of Directors shall have the right t o l i m i t the number of guests thee an h e r or s u c h Ownet's tenant may permst to use the open parking and' reexesrtionrl f a e i l i t 5 e s on the Common Property, and t he Board s h a l l have the r i gh t t o s e t fu r the r reasonable r e s t r i c t i o n s on the t i m e and manner of use o f satd parking areas and recrea t iona l f a c i l i t i e s , i n acco rda~ce with the Rules and Regulations, including, without l imi ta t ion , Rules and Regulations r e s t r i c t i n g or prohibiting the use of a l l or designated portaons of the Property recreat ional f a c i l f t i e s by minors, gues ts of an Owner or h i s t m a n t s .

15.7. No Public Riqht o r Dedicstion. Nothing contained i n t h i s Declaration shalf be deemed to be a g i f t o r dedication of a l l or any p a r t of t h e Property to the - - public, or for any public use.

-

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15.8. No Representat ions o r Warranties. No representations o r warrant ies of any kind, express or implied, other than the s t azda rd w a n t d y required by VA and FHA, have been qiven 01: made by Declarane, o r its agents or employees in connection w i t h t h e Property, or any portion thereof, its physical condition, zoning, coaipl iance with applicable laws, f i t nes s for intended use, or i n connection with the subdivision, sale, operatfon, maintenance. cost of maintenance, taxes o r regula t ion thereof a s a Condominium Project, except as specif i c a l Ly and expressly s e t for th in this Declaration and except as may be f i l e d by Declarant from time t o time with the DRE.

15.9. Nonliabili t and Indemnif icat icn. Except a s s p e c i f i G l l y provized i n ~ 1 x a t r i c t i o n s or a8

I * x . . r e s i r e d -by- law, no. right, sower, .qr rfrsponsjbj&$ty coyrferred 6n the Board 'or the ~ r c h i t e c t u r a l Conunittee by t h i s Declaration, t he Articles o r the Bylaws shall be construed as a duty, obligation o r d i s a b i l i t y charged upon t h e Board, t h e Architectural Committee, any member of the Board or of the Architectural Committee, o r any other off icer , employee or agent of the Corporation. No such Person sha l l be l iab le t o any party (other than the Corporat ion or a party claiming in the name of t?le Corporation) f o r in jur ies or damage resul t i r~g from such Person's a c t s or omissions within what s ~ c h Person reasonably believed t o be the scope of h i s Corporation duties ("Official Acts"), except t o the extent t h a t such injur ies o r damage r e s u l t from such Person' s wil l fu l o r malicious misconduct. No such Person s h a l l be l i ab l e t o t h e Corporation (or t o any patty claiming in t he name of the Corporation) fo r injur ies o r damage resul t ing Prom such Person's Off ic ia l Acts, except to t h e extent t h a t such injurf es or damage resu l t from such Person's negligence or wi l l fu l o r malic Sotla misconduct.

In adtlitian, no person wbo s u f f e r s bodily in jury (including, without: 1 imitat ion, emotional distress o r wXbngfUl death) as a ' r e su l t of fh& tortious a c t o r omission of a volunteer member of the Board o r volunteer of f icer of t he Corporation sha l l recover damages from such Board member o r ofr icer i f the following condi t ions are s a t i s f i ed :

(1) The Board member o r of f icer resides i n the Project a s e i t h e r a tenant o r as an Owner of no more Ulan two (2 ) Condomini~uns ;

(2) The a c t or omission was performed within the scope of the volunteer Board member's or o f f i c e r ' s association dut ies;

(3) The ac t or omission was performed i n good f a i th ;

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(4) The a c t or omission was not wi l l fu l , wanton, o r g ross ly neg: igent ;

(5) The Cerparation maintained and had in effect a t Ule t ime t h e act o r omission occurred and ak the time a claim is made general l i a b i l i t y insurance i n the following amounts :

( a ) Five Hundred Thousand I)ollazcr ($500,000) if t h e Project then consis ts of one hundred (100) or fewer Condominiums;

(b) One Million Dol lars ($2,000,000) i f the Project then consks t s of more than one hundred (100) Condominiums.

... . . . . The pa'pent of ac tual expenses incurred bjj a iioard member

o r o f f i c e r in the execution of such Person' t Corporation d u t i e s s h a l l n o t a f f e c t such Person's s t a t u s as a vo lun tee r Board m e m b e r o r o f f i c e r for t h a purposes cE t h i s Section 15 .9 . A Board member o r o f f i c e r who a t the time of t h e act o r omission r e c e i v e d e i the r d i r e c t o r inciirect compensation a s an employee f r o m Declarant o r from a f inancia l i n s t i t u t i o n that purchased a Condominium at a j u d i c j a l o r non-judicial foreclosure of a Mortgage i s n o t a v o l u t ~ t e e r for purposes of this Section 15.9.

The Corporation, s h a l l pay a l l expenses incurred by, and s a t i s f y any judgreent o r fine l ev ied aga i ra t , ary person as a r e s u l t of any a c t l o n o r threatened ac t ion aq;l;st such Person t o impose l i a b i l i t y on such Person f a r h i s Off ic ia l Acts, provided t h a t :

(1 ) The Board determines t h a t such Person a c t e d , i n good faith and a?? a manner such Person reasonably believed t o be i n the best In te res t s of me Corporat ion ;

(2) In the case of a criminal proceeding, t h e Board determines t h a t such Person had no reasonable cause t o b e l l e v e h i s conduct w a s unlaurfui; and

(3) I n the case of an ac t ion o r t h r e a t e n e d action by o r i n t h e r i g h t of the Corporation, the Board determines t h a t such Person acted with such care, Zncluding reasonable inquiry, as an o r d i n a r i l y prudent person i n a l i k e p o s i t i o n would use under s i m i l a r c ircumstances.

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- f a > $ . - . - .'.. . . . " C . , ' " * ^ " ...- '. .... 'I. , - - D '" "* .. " ' " " '89T":.1'4;33@ . "

Any determination of the Board required under t h i s Sec t ion IS. 9 must be approved by a majori ty vote of a quorum cons i s t i ng of D i rec t~ r8 who a r e not p a r t i e s t o the action o r threakened action giving rise t o the indemaif ication. If the Board f a i l s o r refuses to make any such determinstion, such determinatfon may be made by the vote or wri t ten consent of a major i ty of a quorum of the Memhers of the Corporation, p r ~ v i d e d t h a t the Person t o be indemnified s h a l l not be e n t i t l e d t o vote.

Payments made hereunder shal l include amounts paid (and expenses incurred la s e t t l i z q any such action or threatened ac t ion . This Section 15.9 s h a l l be construed t o authorize payments and indemicication t o the f u l l e s t extent now o r h e r e a f t e r permitted by applicable law.

The entitlement t o indemnification hereunder shal l h u r e t o the benef i t of t h e es ta te , executor, administrator, he j r s , l ega t ees , or devisees of any Person e n t i t l e d t o such indemnification.

15.10. Notices. Except a s otherwise provided in th i s Declaration, i n each inst-mce i n which no%ice is t o be given t o an Owner, the same s h a l l be i n writing and may be delivered personally to kbe Owner, i n which case personax delivery o f such notice t o one (1) or more co-owners of a Condominium o r t o any general p a r t n e r of a partnership owning a Condcminium sha l l be deemed d e l j v e r y t o a l l co-owners o r t o the partnership, as the case may be. Personal delivery of such xrotice to any officer o r agent f o r t he service of process on a corporat ion sha l l be deemed de l ivery t o the corporation. In Lieu of the Eoregolng, such notice may be delivered by regular United S t a t e s mail, postage prepaid, addressed t o t h e Owner a t t he most recent address furnished by such O w n e r t o the Corporak5on or, i f no such address shall have been furnished, to the sttee* address o f such Owner's Unit. Such notice s h a i l be deemed delibered three (3) business days a f t e r t h e t i m e o f such mailing, except f o r notice of a meeting of Members o r of t h e Board of Diractors i n which case the notice provis ions of the ByLaws of t he Corporation s h a l l control. Any n o t i c e t o be given t o t he Corporation may be delivered personal ly t o any member of t he Board, o r s en t by United S t a t e s mail, postage prepaid, addressed to t h e Corporation a t such address as shall be f ixed from time t o time and c i r c u l a t e d t o a l l Owners.

15.11. P r io r i t i e s and Inconsistencf es. If t h e r e a r e conflicts o r inconsistencies between t h i s Declarat ion and ei ther the Articles of Incorporation or t he Bylaws of t h e Corporation, t he terms and provisions of this Declarat ion shal l prevail .

!!I !

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ARTICLE XVI

16. Annexation of Additional. Property. Additional r e e l property may be annexed to Phase 1 and such additional r e a l property may become subject t o t h i s Declaration by any of the methods s e t for th hereinafter :

16.1. Additions by Declarant . Declarant or its successors o r ass igns shall have the r i g h t from time t o t i m e t o add the Annexab~e Territory, or any- port ion o r partions thereof ( inc luding any recreation f a c i l i t i e s located thereon), t o the Property and t o br ing such added t e r r i t o r y within the general p lan and scheme of th is Declaration without the approval of the Corporation, its Boa~d of Directoss,, or Membersf prwfded. t h a t such a r i g l ~ t QI? Declarant and i t a successors and assigns sha l l terminate on the e a r l i e r t o occur sf t h e t h i r d annlversary of the o r ig ina l issuance of t he most recent ly i ssued Final Subdivision Public Report f o r the most recent Phase of Development, or t he seventh anniversary of t he d a t e of Recordation of t h i s Declaration. A s each Phase of Development 18 developed, Declarant may, with respect t h e r e t o , record a supplemental declarat ion ("Supplemental Declarat ion") which may supplement t h i s Declaration with such add i t i ona l covenants, conditions, r e s t r i c t i ons , reservations and easements as Declarant may ePeern appropriate for t h a t Phase of Development. Prior t o any annexation under t h i s Sect ion 16.1, de ta i led plans f o r t h e development of the additional p rope r ty must be submitted t o the VA and the VA m u s t d e t e r m h e that: such plans are Sn accarda-ce with the general p l a n and so advise Declarant.

16.2. Other Additions. In addition *.o the provision for annexatior. specified i n Section 16.1 above, addi t ional real pranexty may be annexed t o the Propert ies and brought within- tf ie generai plan and scheme of this D.eclaratian upon the approval by vote ar writ ten consent of Xembers e n t i t l e d t o exercise no l e s s than two-thirds (2/3rdo) of t h e vo t ing power of the Corporation. Notwithstanding the foreqoing, any additional real property annexed t o the Property a f t e r the seventh (7th) anniversary of the Recordation of t h i s Declara t ion shal l not e f fec t a change i n the percentage i n t e r e s t s o f Owners fn the Common Area which exis ted pr ior t o t h e da t e of annexation.

16.3. Rights and O b l iqations-Added Territory. Subject t o the provisions of Sec t ion 16.4, upon the Recording of a Notice of Addition of T e r r i t o r y containing t h e provisions a s s e t for th i n t h i s Section, a l l provisions contained in this Declaration s h a l l apply t o the real property described i n such Notice of Addition of Terr i tory ( the "added terr i tory1 ' ) i n t he same manner a s if it were origxnally covered by t h i s Declarat ion. Thereafter, t he

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II I 9

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r ights , powers and respons ib i l i t i es of the partfes t o t h i s Declaration with respect t o the added t e r r i t o ry s h a l l be the same as with r e a p e c t ta tbe property origizaaLly covered hereby, and the r i gh t s , powers and responsibi l i t ies of the Owners, l e s sees aad occupants of Units within the added te r r i to ry , as welL a s within t h e property or ig ina l ly s u g j e c t t o t h f s Declaration, shall be t h e same as i f the added t e r r i t o ry w e r e o r ig ina l ly covered by thfs Declaration. Voting r ights a t t r i bu tab le t o the Condominiums jn the added t e r r i t o ry s h a l l no t vest un t i l Annual Assessments have commenced as to such Condominiums.

16.4.- Notice of Addition of Territory. The additions authorized under Sections 16.1 and 16.2 s h a l l be made by Recording a Notice of Addition of Terr i tory, o r o ther B i m i l r r iZzdruinEnt (QhtcX NoeicP or Instrririient m-dy contain the Supplemental Declaretion, i f any, af f ect ing each such Phase of Development), with respect t o t he added t e r r i t o ry which s h a l l be executed by Declarant and s h a l l extend the g e n e r a l plan and scheme of t h i s Declaration t o such added t e r r i t o r y ("Notice of Addition"). The Recordation of said Notice ~f Addition s h a l l const i tute and ef fec tua te the annexation of t h e added t e r r i t o r y described therein, and there~pon sa id added te r r i to ry shal.1 become and cons t i t u t e a p a r t of the P r o j e c t , become subject to t h i s Declaration and encompassed wihhin the general plan and scheme o f covenants, conditions, r e s t r i c t i o n s , reservation of easements and equitable s e rv i tudes contained herein, and become subject t o t h e functions, powers and jur isdict ion of tire Corporation; and the Owners of Condominiums i n said added t e r r i t o r y s h a l l automatically become Members of t h e Corporation. Such Notice of Addition may contain a Supplemental Declaration with such additions and modifications of kha covenants, conditiond, restr ic t ions, reserva t ion of eassments arld eqrlitable servitudes w n t a i n e d i n t h i s Declaration as may be necessary to re f lec t t h e d i f f e r e n t character, i f any, of the added t e r r i t o ry , o r as Declarant may deem approprzate in t h e development of t h e added t e r r i t o ry , and as a r e not inconsistent with t h e general plan and scheme of t h i e Declaration. In no event, however, snal l such Notice of Addition or Supplements: Declaration revoke, modify or add t o t h e covenants, conditions, res t r ic t ions , reservation of easements, o r e q u i t a b l e servitudes established by t h i s Declaration a s the same shal l per ta in t o the r ea l property or iginal ly covered by th i s D3claratfon.

16.5, Reciprocal Cross-Easements Between Phases. Subject t o annexat ion of additional property a s s e t f o r t h i n Section 16.1:

(a ) Declarant hereby reserves f o r the benefi t of and appurtenant t o the Condominiums hereafter

Description: Orange,CA Document-Year.DocID 1989.143967 Page: 76 of 122 Order: 13 Comment:

loca ted i n each Phase of Development annexrid t o Phase 1 and t he i r respective Owners, nonexclusive easements t o use the Common Property ( o t h e r than any bui ld ings coui=aining dwelling u n l t s or EXcluSSVe Use Common Area) In Phase 1, including, without l i m i t a t i o n , the driveways, pursuant t o and i n the manner s e t fo r th in t h i s Declaration, t o t h e same ex ten t and with the same e f f ec t as i f each of the Owners of a Condominium i n each Phase of Development annexed t o Phase 1 owned an undivided i n t e r e s t in the Common Area in Phase 1-

(b) Declarant hereby grants, f o r t h e benefit of arrd appurtenant t o each Condominium i n Phase 1 and t h e i r Owners, a nonexclusive easement t o use the Common~.Prope~y (other ehan any buildings aon tahhg . . dwelling units or Exclusive Use Common Area) i n each Phase of Development annexed t o P h a s e I, including, without l imitation, the driveways, pursuaat t o and in t h e manner set forth i n t h i s Declaration, t o the same extent and with the same e f f ec t as if each of t he Owners of a Condominium i n Phase 1 owned an undivided fn te res t in the Common Area in each such Phase of DeveLopcsr.? .

n e s e rec iproca l cross-easements sha l l be e f f e c t i v e ss t o each P h a s e of Development annexed t o P h a s e 1 and a s t o Phase 1, only upon the f i r s t Close of Escrow fo r the sale of a Condominium i n such Phase of Development annexed to Phase 1. Prior t o such f i r s t Close of Escrow, ne i ther Phase 1 n9m: the Phases o f Development annexed t o Phase 1 s h a l l be affected by these r ec ip roca l cross-easements .

l b .6. Reannexation. Declarant may dele te a l l or a portion of a Phase of Development f rcim coverage of t h i s Declaration and the ju r i sdfc t fon of t h e Corporation, 80 long as Reclaraut is the owner of a l l of such Phase of Development, and provided that (I) a Notice of Deleticn of Terr i tory is Recorded in the same manner as the applicable Notice of Addition w a s Recorded, (2) Declarant has not: exercised any Corporation vote w i t h respect t o any por t ion of such Phase of Developmer.t, (3) assessments have not ye t comanced with xespect t o any po r t ion of such Phase of Development, (4) Close of Escrow has no t occurred for the sale of any Condominium i n such Phase of Development, (5) the Corporation has not made any expenditures or incurred any ob l iga t ions with respect t o any portion o f such Phase of Development, and ( 6 ) a draf t of t he Notice of Deletion of Ter r i to ry has been submitted t o VA and VA has determined that the deannexation i s acceptable and i n a c c ~ r d a n c e with the revised general plan and has s o advised Declarant.

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T h i s Declaration is dated f o r i d e n t i f i c a t i o n purposes 1989.

THE WILLIAM LYON CONPANY, a Calif ornf a corporation

By:

STATE OF CALIFORNIA 1

COUNTY OF O W E

, 1989, before me, t h e undersigned, sa id S t a t e , personally appeared , personal ly known to me or proved

who executed the within instrument as r on behalf of TRE WILLIAM LY therein named and acknowledged t o me that the corporation executed it.

WITNESS my hand and o i f i c i a 1 seal.

r-lc.narrs - -5IeWI V o t a r y Public in and fa

Y l ~ e r a r r b r r r t L

STATE OF CALIFORNIA ) 5s. 1

1989, before me, the undersigned, said Sta t e , perso-?ally appeared , personally knovm t o me or proved

or on behalf of THE WILLIAM LYON COMPANY, the Co-Q therein named and acknowledge-! t o m e t h a t the co executed it.

WITNESS my hand %official 6eHf

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. . .. . a " - . . . . " . . . . _ . . . . . "

-,. . . " -. <

SUBORDINATION

Tbe undersigned, as Beneficiary of the benef ic ia l i n t e r e s t i n and under t h a t ce r ta in Deed of Trust d a t d August 9, 1988, r e c o r d e d on August 31, 1988, as Instrument No. 88-435771, i n the O f f i c i a l Records of Orange county, C a l i f o r n i a ( t h e "Deed of Xrust"), which Deed of m u s t is by and between The Wf l l i a m LYon Company, a California corporat ion, as Trustor, &nd ~ i c b r T i t l e Insurance Campany, a California c o r p o ~ a t i o n , as Trustee, and C o n t i a e t a l Bank. N.A., a n a t i o n a l banking asscciation, as Beneficiary, he;eby express ly subord ina tes said Deed of Trust and i t s beneficial i n t e r e s t thereunder to the foregoing Declaration 04,-

'*d - . CovRnants., -,Conditions. 9ndb?Re-strict'i'bhs' 6 8 ~ e s 6 s < t i o n - oP Easements for Caraffna ("Declaration"), t o any Notice of Addition of T e r r i t o r y recorded pursuaat t o t h e provisions of A r t i c l e XVI of the DecLaration ("Notice"), and t o a l l maintenance and other easements t o be conveyed t o the Corporation i n accordance wi th the Declaration or any Notice. By execu t fng t h i s Subordinat ion, t h e undersigned agrees that should the undersigned acqu i re t i t l e t o at1 o r any por t ion of the Proper ty by f o r e c l o s u r e (whether jud ic ia l o r nonj u d i c i a l ) , deed-in- l i e u of foreclosure o r any other remedy in o r r e l a t i n g to the Deed of Trust;, the undersigned w i l l acquire t i t l e sub jec t t o t h e provisions of t h e Declaration and any a p p l i a J b l e Notice, which shal l remain in f u l l f o r c e

d , 1983.

CONTINENTAL BANK, N.A. , a national banking associatfon

By:

I ts: Ikeal Estate O~SCW

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Description: Orange, CA Document-Year. DocID 1989.143967 Page: 79 of 122 Order: 13 Comment:

, 1989, before me, the undersigned. and for said State pergonally appeared

and &rQ/#,, ~ . ~ - * ~ e / , m e or proved t o me on/the b a s i s of

satisfactory evidence to b'e the persons who executed M e within instrument as VICE ' -rrr and Real F resnectivelv. or on b b - BANK, N y t % a e

r e r

$a&* association therein named and acknowledged t o me that the banking association executed it.

. LrL . . .. WITNESB..my hand*

f l $ a r y Public in and for sald State

f aj 037/20464/000/009O/casaf ina 049/049 01-12-89

I I I ~ e s c r i ~ t i o n : Orange, CA Document-Year. DocID 1989.143967 Page : 80 of 122 Order: 13 Comment: S

SUBORDINATION

The undersigned, beneficiary under t h a t c e r t a i n deed of t r u s t encumbering a l l or a portion of the Property defined i n the Declaration w h i c h deed of trust was recorded on March 31, 1988, as Xastrument N o . 88-1485-2.9, of O f f i c i a l Records of Orange County, hereby consents t o the Declaration, and subordinates the l i e n of s a id deed of trust t o t h e provisions ~f such Deckaration, any amendment thereto t h a t may be requ%red for the purpose of complying with any law, regulat ion o r other requirement of any of %he Federal Agencies, and t o any Supplementary Declaration annexing ad- d i t i ona l property t o t h e Dec1arat:ian.

RANCHO SANTA MARGARITA JOINT VENTURE: a Cg1f fornia -general partnership

By: SANTA MARGARITA REALTY COMPANY, a California corporation, a general ,

STATE OF CALIFORNIA 1 ) ss.

COUNTY OF ORANGE 1

On F T L ~ H ~ ~ M &at , 1989, before me, t h e undersigned, a Notary' Public i n and rpr sa id S ta t e , person3LLy appeared O. . SCTC,.~ f . (U h 1 . L c

pbrsonally b o r n to m e p w to b& t h e person[s] who executed the

within instrument on behalf of SANTA MARGARITA REALTY COMPANY, a partnership, and acknowledged t o m e t h a t such partnership executed it on behalf of RANCHO SANTA MARGARITA J O I N T VENTUItE, the partnership therein named, and t h a t the p a r h e r s h i p executed it.

WITNESS my hand an.,official seal.

Description : Orange, CA Document-Year. DocID 1989.143967 Page: 81 of 122 Order: 13 Comment:

- .- *". . . ". - . , - . . . . . +. -.* . . . _...". . .. ._" , . .."." , , .. ., \ . - , . ...* .. ., .. , .. . - EXHIBIT "C"

DRAlINGS DEPICTING EXCLUSIVE USE . - s . . a

CO&ON AREA PATIOS IN PHASE 1

The Exclusive Use CommOn Areas f o r pa t io purploaea, as depicted and assigned on t h i s Exhibit "C" t o the Declaration, sha l l contain a t l e a s t the respective number of square fee t a s show on the drawing attached hereto. The E&clusive Use. Cornman Areas for patio purposes are bounded by a plane located eight (8) f e e t below the surface of t h e ground, extending t o a h e i g h t of sixteen (16) feet =d laterally to the feun2at ions and structures of t h e

< a r . . ResidentSaL.buildLng. Improy.ements. and. to. .the Latebief..- ,

surf aces of the fences surrounding the pa t io areas. as such foundations, Improvements and fences are f n f t i a l l y constructed by Declarant. These drawings showing t h e pat io areas conta in only approximate dimensions and ate n o t necessar i ly drawn t o s ca l e . There are also reserved and conveyed by Declarant t o the Owner of the Condominium, t o which t h e Exclusive Use Common Araa patio is appurtenant, an encroachment easement as to actual location onto t h e Common A r e a f o r any such patio t h a t mry exceed the dimensions shown on t h e attached drawing.

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. - , . . . . . , . PATIO. EXCLUSIYE ,USE,WMMON. AREA . . .. . . . . . . .-.

PHASE 1

. % .

C . .

UNiT TYPE BR

"P - ' indicates Patio and assigned Unit number.

UNIT TYPE

UNIT TYPE

UNIT TYPE B

P44 P61:

C P-60 P613

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I I

)-c

80 S.F. P-43 P-51 P-59 P-67

I

PZGAL DESCRXPTTON OF AM5EXqBI*F TERRPTORY

All tha0 c;lertaia real ropsr+y in unincorporatect orang. county, ( a ~ i ~ ~ ~ n i a , desCrEbw as ial~ewli:

Tract 13364, as shown on a Subdivision Hap, reco?Aed on February 8, 1989, fn Rook 626, Pages 8 eo 13 , inclueive, of Miscellaneous Maps, in the Office af the Orange County Recorder, excepting Phase 1 theref ram.

Description: Orange, CA Document-Year. DocID 1989.143967 Page : 120 o f 122 Order: 13 Cornmen t :

DRBWINGS DEPICTING AND ASSIGNING EXCLUSIVE USE COMMON AREA UNCOVERED PARKfNG SPACES IN PHASE 1

Description: Orange,CA Document-Year.DocID 1989.143967 Page: 121 of 122 Order: 13 Comment:

. . . . . . . . . . . . . . . . -. EXHIBIT "EN -.

EXCLUSIVE USE COMMON AREA OPEN PARKING SPACES

CASAFJNA Phase 1

"P - ' indicates Parklng Space and assigned Unit number.

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RECORDING REQUESTED BY ?3D WHEN RECORDED HAIL TO:

7 - " ----- PETTXS, TESTER, =USE & =INSKY I $1 i 02 1 8 ~ 8 1 Von Karatan, 16th Floor Imine, C a l i f c r n i a 92715 1 C l b 1 $2 MAY 2 3 I989 -- -1 A t t ~ . : Ms. Dorothy A. Urbanec

-- -- 4 a.4Sllk4CC: k x d e r ~ p a c e A b o v e ~ h i s - F o r c z r d e r e Use

-1TPPT.W.WrARY DFCTARATION OF COVENANTS, CONCITIOHS AND RESTRICTIONS

CASAFINA

ORANGE COUNTY. CALIFORNIA

THIS BUPPLEXENTARY nECLARATION OF COVEUAHTS, CONDI- T I O N S AND REBTRTCTIONS ( h e r e i n a f t e r I3Supglementarqr Declara- t i o n " ) i s made t h i s 0 day of i~:,. , t , 1363 , by Rancho Sar.ta Margar i ta J o i n t Ven tu re , a California General Partner- ship, its s u c c e s s o r s and assigns (@@Conpany") and The Willien Lyon Company, a c e l i f c r n i a c c r p o r a t i o n , its successors and a s s i q n s ( @ @ P a r t i c i p a t i n g B u i l d e r s a ) , scmetimee hereinaftsr coL- l e c t l v s l y referrad t o a s the @'Declarar.t."

A . Participating E u i l d e r is the f e e owaer cf c e r t a i n praperty i n the Csun ty of Orange, State of C a l i f o r n i a , described as:

Lot 5 of T r a c t No . 1 3 3 6 4 , as per Nap f i l e d on February 8 , 1989, in Book 6 2 6 , Fages 8 t o 13, i n c l u s i v e , nf Hisce l l aneous Maps, r e e ~ r d s of s a i d County (the " R e s i d s n t i a l L o t w ] :

L o t H of T r a c t No. 1 3 3 6 4 , as p e r Rap f i l e d on Fcbnary 8 , 1989, in Boak 626, Pages 8 to 1.3, ~ n c l u s ~ v e , of Misce1:aneous Haps, records cf s ~ i d . county .

A i l of the above d e s c r i h e d ~ r c p e r t y is here inaf ter ccl- l e c t i v e l y r e f e r r e d to as t h e FQA??nexed Property*.

~ s j 0 3 7 / ' 2 C C 6 4 / J O C / 3 1 6 0 ~ ~ : a s e f i n s . 3 l 4 l i l - i 52-Ci-80

Description : Orange, CA Document-Year. DocID 1989.274289 Page : 1 of 4 Order: 13 Comment: b 1

B. The Annexed Property is p a r t of t t i * IfAnnexa- t i o n Proper tyw as s u c h term is def ined ira t h a t e a r t a i n Dec la ra t ion of Covenants , Condit ions and Res tri=t i o n s recorded on October 28 , 1985, a s Ins t rsment t:n. k ? 5 - 4 ' 3 8 8 3 , of O f f i c i a l Records 02 said CoLnty, as amended ky t h e Amended and l ie6 ta ted Declhrat i o n of Covenants, CondirLor,~ and R e s t r i c t i o n s r e c o r d e d on A p r i l 2 4 , 1 9 8 6 , h s Instrulnerit KO. 86-162928, of O f f i c i a l Records of said Cwdnfy, and any azend- mants t h e r e t o ( t h e v D e c l a r a t i o n " ) .

C . DecParan t now d e s i r e s that t h e Annexed Property be canveyed subject t o t h e covefienZs, c o n d i t i o n s , r e s t r i c t i o n s , r e ~ e r ~ a t i o n s , l ief is an& charges h e r e i n a f t e r s e t f o r t h and as set f o r t h i n t h e Des lara t ion .

NCX, THEREFoRE, it is d e c i a r e d as f01:ows:

1. Excep t as def inad herein: and un les s the con tex t clearly i n d i c a t e s o t h e m i s e , the terms used iri t h i s Supplementary Dec l . a r a t ion a r e def ined t o mean t h e sass as such t e r a s a r e d e f i n e d i n t h e Declara t ion .

2 , A14 of t h e An3exed Proport',' i s hereay made subjsct t o all of the terns, covenants? candi t -or i s and provl- s i o n s as s e t f o r t h i n t h e Declaratj.on ar.d spesifFs.stlly pursc- a n t t o t h e provisions of t h e Sect ion e n t i t l e d nAnnexation Without Approval and P u r s u a n t t o General P lanw of t:.e Artl~le e n t i t l e d "Annexatf o n s M of t h e D e c l ~ t a t l o f i ts a l l l n t e n t s a ~ d purposes as thouqh said l a n d vsre a part of t h e I n i t l a ! . Covered Prope r ty .

3 . The r e c o r d a t i o n of t h i s Supalerr.~n=arj' Cecl?ra- tian shal! rczzti~ute ana e i i e ~ t . ~ t ? a t h e an?exa=ion cf t h e Annexed Prnne r ty , nakinr, said r e a l ~ ; r o ~ ~ r ' L y s u b j e c t t5 the D e c l t ~ s t i o n dna s u b j e c t t~ t h e f u n r t ; o n s , piL3rs and ju r i : . a lc t ion of S P S L A R C as provides i n t : : s Dec!.ai*tion, an? t h e r e a f t e r ssiu r e a l property sna i : be part. - f the Cb-.v--=- Proper ty at? L; rne VWI.-.= ;r Z?slden~cs r: the Armexec Froper ty s h a ~ 1 a u t o m a t i c a l l y be M e m i ~ r s V: 5: I>"' rind Owners unecr t h e Ds; . a r a t i o n .

4 . A l l r i g h t s and easements ras~rvea by 'he Ceclarant i n t h e D e c l a r a t i o n a re hereby resewed over 'he Annexed P rope r ty , and any Easements reEerVed i n the Dec;?rc- t i c n t o Cornparry a s Declai-arit fcr tha benefit of I)vr.ers i:. $n.1 t o any Comlunity Property are hereby graatrd t o the Fnrr.ic:- pa t ing Bu i lde r , t o g e t h e r w i t h t h e r f p h c and ob:igaticn of svch P a r t i c i p a t i n g Buf l d e r t o ?ran: ar.5 transfor rli of sc;?. f s s = n e n t s t o Owners e s ~ r o ~ i d e d i n :he D~cla=ati3:- i , ;nc:~9- rng , w i t h o a t licitsti 97, t h e n o n e x c l u s i v ~ eaoe;.ect for i ng res s ar.d egress as such easexent 2s msre p r r f c u l a riy descr ibed i n t he Sec?.ioa entitled ucerccin Easemezts far O;-zers" of t h e A r t i c l e entitled " R l $ = t s of ;;;;.azshi~ sr.5 Easeaents9? or t h e L e c l a r a t i ~ n .

D e s c r i p t i o n : O r a n g e , CA D o c u m e n t - Y e a r . D o c I D 1989.274289 P a g e : 2 o f 4 O r d e r : 13 Conrment:

5. A 2 1 o b l i g a t i o n s of Declarant under t h e Dec la ra t ion a r e hereby extended to the Annexed Property a s provided i n the Declaration.

6. A 5 provided i n t h e Dec la ra t ion , negular As- sessments and t h e en t i t l ement t o vo te s h a l l commence as t o a l l Owners wi th in the Annexed Property cn t h e f i r s t day of t h e month following t h e f i r s t conveyance of a Residence by Declarant wi thin t h e L.tnaxect Property.

7 . The Res iden t ia l Lot is hereby designated to L-- --- C- C - - - 4 4 I. n-1 *--+a -+-I-* -..-c-v--+ C_C S e r t l nn ussu.,., cu +urur*..- -- -..>- .... --- -- -rr =-----.r-

e n t i t l e d nEsta t l i shment of Delegate Disrrictstt o f t h e Ar t i c le e n t i t l e d nHambership Voting Rightsw of t h e Dec la ra t ion .

8 . This Supplemen=ary Dec la ra t ion caneels end supersedes t h a t certaifi Sup*>lementarf De~:aratio:-~ s f Covenants, Conditianr and Rostrict , ions recorded on March 3 1, 1985, as Instrument No. 88-148545 as to t h e AnnexeC Property only aad no t as t o any o ther proper ty that may be encunbered by t h e s a i d recorded Supplementary Deolara t fon. Thete has been no conveyance of a Residenae within the Annexed Property as o f t h e date of t h e recording of t h i s Supplementary Dec la ra t ion .

I N WITNESS WEREOF, t h i s ins t rument is sxecucad a s of t h e day and year f i r s t above w r i t t e n .

RANCHO SANTA P ? G A R X T A JCINT VENTtfRE, E. Califernza General Par tnership

By: Santa K a r g z r i t e Raaity Company, a Caiif o r n i a corporat6cn, a General h r f n e r I .

i . -11 .. !h? . ~ . . < 4 ~ , , ~ . .i#. By: ,-_I:.--

8:e$#n C. Schcar.kr Sr. vice r'cesi$ent

TEE WILLIbS L':';:'. * 1 ; r . r ~ l . z ~ * California z s r p c r a t i o r "

Description: Orange, CA Documen t-Year. DocID 1989.274289 Page: 3 of 4 Order: 13 Comment :

-- - --

STATE OF CALIFORNZA 1

COUNTY OF O W G E

On --, ' , 1989, before m e , the undersigned, a Notary publyc in and for said State, pursonalZy appeared

I . : i' ,: . . . , persona:ly kkaA' fn m a Zr n r v d m ' kn' '4116 basis otZ%5sfncto~ evidence to be %he peroon(6) who executed t h e w i t h i n in s t ru -

. ' < . . ; ment as -A h t or on ~ e h a l f of T I E Wf LLfAM LYON COMPAWY. the corporet i o n that executed the within instrument and acknowiedged to ma that seid corporatian executed the within instrument pursuant to its Bylaws ar 6 resolut ion of its board of directors.

WITNESS my hand and o f f i c i a l real. . .

On this 15th day of rarch, 1969, before me, t h e k.:nb.tr~iyn&~ a :;oram Pualic an a d for said State, ~ C S O M I I Y appeared S=c#en f. ~ckrar :~ an3 G a l 2 E. i+oe persorally kncm to me t c be the Senior L l . P , + e s t b e n c a& Vice president -- c;f Santa M a ~ a r j t a Realty C m y , ci C%llfomia ?armratiw,, t n e Ccnx,ration t h a t executed t h e w i t k i n i n s k m n t . amS persc.n'aiiy ~ACW to .m t i be tr.e

id,- . --..-d +h,? ,..$..h<- : --.-.. -- .. . - ...... - - - ...... i jeinq knom to ne ts be the Ednwirq Ger~eral ?artnec of RLCCFC, .Sar!ta X~rcjaritz Jcint :ier.turr, a Cali icrr:is ,Skrteral Eartnrr+i; i , , c l ~ ? Percners:;i n :.,; ..... +& Ch . ... .. L..e within ins tnxznt .

Description: Orange,CA Document-Year.DocID 1989.274289 Page: 4 of 4 Order: 13 Comment:

--

WHEN RECORDED, MAIL TO:

89-274290 KEC3Flr)kVG REQliESEO 8Y

TICOP, TITLE INS. CO. GF CAUF.

HcKITTRICK, JACKSON, DeXARCC, G PECKENPAUGH {PSJ)

4 0 4 1 SacArthur Boulevard, 5th Floor km MAY 2 3 1989

Poet Of fics Box 2710 Nowport Beach, CA 92658-8995

NOTICE OF ACDITION OF TERRXTOBY AND

SUPPLEEENTAL DECLARATION CF COVENANTS, CCNLITIONS AXD RESTRICTICXS FGR PHASE 2

OF CASAF I N 4

Description: Orange,CA Document-Year.DocID 1989.274290 Page: 1 of 10 Order: 13 Comment:

NOTICE OF ADDITION OF TERRITORY AND - - - SGPPISMENTAL DECLARATION FOR PHASE 3 OF

CASAPINA

THIS NOTICE OF ADDITION OF TEMXTORY AND SUPPLEMENTAL DECLARATION ("Notice OF Addle ion") i a by THE WILLIAM LYON COMFUIY , a C a l i f o r n i a cnrporatlorr r I l n n r 1 , ., ..-- r r r n C n ! -- .-. .

A . Dec la ran t execu ted a Declarat io~; o f Covenants, Conditions and Xeetrictio~m and Reservatlcn ~f Easernenrs f o r Casaf i n a ( lQDec la ra t ion r ) . T h e Dec lara t f on wso Recorded olr March 2 1 , 1989, as Ins t rumen t No. 69-143567. LII t h e r)fei.c.i.nl Records OP Orange County, C a l i i c r n i a ( : h 3 i r t i s i a i Recordtie) . T h e D e c l i r a t i o n is binding upon a l l Ovnerrr of Cofidcniir.iumo in t.he condominium p r o j e c t known as Canafina ( l*Pro jcc tw) .

8. Dec ia ran t i s t he owner o f cer ta i i~ reai property ("Added Territory") iri the unincorpara tud a:@& of o r a n g e County, C a l i f o r n i a , d e s c r i b e d a 5 Iollcus:

Lacs 5 and H of Trac!: 140. 1 3 363, as +!lowr; on a Subd iv i s ion Map, Rrcardeu cn February 8 , 1989, in Book 626, Pager 6 t~ 1 3 , i n c l u s i v e , of H i e c e i l a n e c u s Wapc, i n Lhe Office of the Orange County Recorder, California.

C . O n February 2 2 , 19a3, P s c r a r a n t executed a Condoninium Plan f o r t h e Added T e r r i t o r v ("Phase 3 Condominius Planm). The Phase 3 ~ o n d c ~ . l n F . a Plan was

3. Pursuant ta A r t l a l a XVL cf the i i e ~ ~ e r a t ~ o . ' l , G e c l a r a n t nov desires to add tbe Added: T e r r i t o r y te the n r o p e r t v a l r e a d y s u b j e c t tc t h e Seclereticn as Phaca 3 cF the .- . . . ., .

e

THEREFORE, DECLARANT HEREEY DECL4Rf 5 AS FCTLLOU3 :

i. a n - a t i ~ g sf ?.dded T e r r i t ~ r v . Declarcnt, as t h e c d n e r of the Added T e r r i t o r y , heroIjy dcclares t k a t t n e Added Te r r i t a rp is annexed to and made a p a r t of t h e Prcpsrry a l r e a d y s u b j e c t t o t h e O e c l a r a t i o n as Phase 3 of t h e Project. T h i s Kot ice of Addi t ion constitutes a N o t i c e sf Adt i t i o r : of T e r r f Cory a s d e s c r i b e d i n S e c t i c n 1 6 . 4 of t h ~ Declaratiori.

D e s c r i p t i o n : O r a n g e , CA Documen t - Y e a r . DocID 1 9 8 9 . 2 7 4 2 9 0 P a g e : 2 of 1 0 O r d e r : 13 Comment:

- - - - - - - - - -- - - --- ---

2. e r e s t s i n Common Area. S u b j e c t to t.he a rovimions of S e c t i o n 1 1 . 4 o f thm Declara t ion , t h e Owners of ~ondominiurno i n Lot 5 o f eaid Trac t 1 3 3 6 4 s h a l l hava an undiv ided one-iort . i e t h ( 11 40) i n t e r c o t i n t h e Cozmon Area which is l o c a t e d a n Let 5 o f t h e added T e r r i t o r y for each Condominium owned. Such Common A r s h a l l be conveyed i n f a e simple t o the Owner. of Condominiumn i n t h e Added T e r r i t o r y a s t e n a n t s i n common, oubjact to c e r t a i n r e s e r v a t i o n s and easement righte.

3. ' v e U e e Areas. L?eclarar.t hereby r e s e r v e s , fo r t m e 3 I - t o f gtz~% Ownera o f Condora in iu~s :;, :.3",=< Tatrite=, oyrly~ jtre ercgg=:ts n**er ~ortlnnn nf t h e Comma?, Area and Corpora t ion Property i n t h e Added T e r r i t o r y . The E x c l u s i v e Use Common Areae fcr deck p u r p s e s a r e ahovn an& assrigned on t h e Phase 3 Colidominium Plan; t h e Exc lus ive Use Common Areas i n t h e Added T e r r i t o r y fo r pctio purpoees are shown and a s s i g n e d on Exbibit "A1* atLached h e r e t o , and t h e E x c l u s i v e Use Comer: Areas i t 1 t h e Added T e r r i t o r y f o r uncovere5 p a r k i n g purposes a r e s9own an2 a s s igned on E x h i b i t "BV* a t t a c h e d here to .

4 . -ocal Cross-Easements Between Phases. Subject t o ann-xat ion o f a d d i t i o n a l property as set f o r t h i n S e c t i o n 1 4 . 1 o f t h e D e c l a r a t i c n :

(1) Dec la ran t hereby r e se rves f o r che b e n e f i t of and appur t enaa t t o a l l Condnmlnicxs i n t h e P r o j e c t and t h e i r respective Ovners, nonexc lus ive e a s e f e n t s t o use the Ccz;-,on Area ( o t h e r t h a n any b u i l d ~ n g s o r Zxclusive Use Comnon Areas) end Corporation Proper ty ( ~ f any) i n Phase 3 , i nc lud ing , without L i m i t a t i o n , t h e driveways, pursuant t o an4 i n t h e manner s e t f o r t h i n rhe C s c l a r a t i o n , to t h e 6eme e x t e n t and with the same effect as i f each o f t h e Owners of a Condominiam is each Phase of Development annexed to the F r o j e c t owned an undiv ided i n t e r e s t i n tte Ccnimo:~ Area i n Fhase 3

( i i ) , D e c l a r a n t hersby g r a n t + , f o r tte - . . apk-- b- ..A,.L .+ --.."a ' ' * - *

i n Phase 3 ~ n d their Owners, a nonexcius ive easeEen t t o u s e t t e Ccmnon Ares (ot.?er t n a n -a*.. k % r i 3 a4 -me -r F . Y c ~ - , ~ c ivo T~c-.cI P-a*m.-n hye?a! ... a116 \ = ~ + ~ u r a ~ i u l t F L U ~ ~ ~ L ~ , ALP L I I I J ) ;.a c ~ - . L

Phase of Deveiopnent of t h e Prefect, F ~ c l u b i n g , without l i m i t a t i o n , t h e driveways, p u r s u a n t t o t h z p rov i s ions and in tho sanner set f o r t h i n t h e Declara t icn , to the same e x t a n t 2nd with %he same effect as i f each Ovr.er of a Condoziniam i n Phase 3 owned an

Description : Orange, CA Document-Year. DocID 1989.274290 Page: 3 of 10 Order: 13 Comment:

- -- --- -- -

undivided i n t e r e s t i n the CoaEon Area i n each Phasc of Development of t he P r o j e c t .

These r e c i p r o c a l cross-easements s h a l l be e f f e c t i v e as t o e a c h Phase o f Development of t h e P r o j e c t , o n l y uFon the f i r s t C lose of Escrow for t h e s a l e of a Condoainium i n such Phase of Developasnt . Pr ior t o such F i r s t C l o e s of Eecruw, n e i t h e r Phaecr : n o r t h o o t h e r Phases of Develofiaent s h a l l be a f f e c t e d by these r e c i p r o c a l cross-easements.

5. pfembersili~ Com9rat$on. Each Owner o f one or more Condominiruns in t h e Added T e r r i t o r y shell a u t o m a t i c a l l y beccme a member of ca sa f i n a W a i ~ t e n c n c e C o r p o r a t i o n (nCorpora t ionu) , a C a l i f o r n i a nunprof it mutual o e n e f i t cozpora t ion , as provided i n S e c t i o n 2 . 5 cf thr D e c l a r a t i o n , a s weli a s a member of Rancho S a n t e H s r g a r i t a Landscape and Recrea t ion Corporat ion, c Cal i f o r n i e c o r p o r a t i o n ,

6. jXs6essment O b l i a a t i o m . I h e r i g n t s and ~ S i i g a r i o n s o f a l l Owners of Condomini?uns l o c a t e d i n the Added T e r r i t o r y w i t h respect te t h e payment of assessmrntn t:, t h e Corpora t ion are s e t f o r t h i n A r t i c l e V c f t h e Declara t ion . The Annual Assess~?nts tc be p a i d t o the Corporation s h a l l comence as to a i l Co?doain;sns i n t h e Added T e r r i t o r y on she first day of t h e first calendar month f o l l o w i n g t h e e a r l i e r to occur of t h e fc!.lowinq events: !a) f i r s t C l o s e of Escrow f o r t h e s a l e o f a Condon in i~n i ,n t.ne Addec~ T e r r i t o r y , o r (b) conveyance of t h e C o r p o r a t i o n P r o p e r t y i n t he Added T e r r i t o r y t o t n e C o ~ o r a t F o n , as p r o - r i d d zn Sea t io r . 5 . 5 t f t h e D e c l a r a t i o n . A l l o f t h e Added T e X ~ i t a ~ ] is a Pnare af C e v e l o ~ m e n t as defined i n t h e Dec la ra t ion . a n d sii of t h e Added T e r r i t o r y w i l l be covered by one F ina l Sslbdivisiorl Public R e p ~ r t t o be i s s u e d by the DRE.

7. .&and C l a s s i f i oo t ions .

a . Res iden t i a l Lets. Lot 5 of t h e Added T e r r i t o r y s h a l l be a p o r t i o n of t h e P r o j e c t or. which Condrrrsiniuzs shall be lccated upon the first Ciose cf Escrow f o r t h e s a l e of L condominium therein.

b, a r c o r a t i o n P:oDer'-,v. '&t f? cf t h e AdZeC T e r r i t o r y shall be a p o r t i o n of t h e Corpora t ion P r o p e r t y upcn 17s conveyarzce to t n e Corporat ion p r i o r tc t h e f i r s t Close o f Escrow i c t h 6 Added Te r r i t o ry .

E . r;eb@gat,ce Obl iqa tP t r f i . The ?.,alr.ter.ance o b l f c j t t i o n s of t h e CorporaZion, t h e ovr,ers and "uec1zrar.t a r e descrlted ;n tF,& Deciarat ion. The C o r p o r a t i o n s h a l l ass-me ~ t s maintenance ah l iga t ions with respect co t h e Added T e r r i t s r y Spi;E the connence~ent of Annual Assessnents In t h e Ad3eC Territory.

9. ; r . c m o r a t ' on of ' issP,rstrint' 0 s . 'Iko r;se r e s t r i c t i a n s a e g o r t h i n l A r t i c l e V T f I of t . k . ; D s c i c r a t l o n as

Descript ion: Orange, CA Document-Year. DocID 1989.274290 Page: 4 of 10 Order: 13 Comment:

a p p l i c a b l e t c Phase 1 a r e hereby incorporated and madm app l i cab le to the Added T e r r i t o r y as i f fu l ly sut f o r t h i n t h i s Notice of 4 d d i t i c n .

10. Conformitv w i t h Devsl Plan. ~ h f ra Nctice of Addition is i n ccnfl;mit.y w i t h th=lcpment plan c u r r e n t l y on f i l e with t h e DRE. Thin Notice o f Addition is being Recorded p r i o r t o t h e t h i r d (3rd) anniversary 05 t h e o r i g r n a l i s suance u i iizv m u a i r u ~ e n t i y isrruori Subdivision Publ+c Report from t h e DHE f o r the most r e c e n t Phase of Development of t h e P r o j e c t , as described i n Sect ions 16.1 and 1 6 . 2 of t h e Dec la ra t ion . This Notice of Addition s h a l l n o t have t h e d i r e c t e f f e c t o f increasing t h e current budgeted expenses cf t h e Ccrpora t ion by r c r e than twenty percent ( 2 0 % ) o r s u b s t a n t i a l l y overburdening t h e Camon P-ross o r t h e Corporation P r o p e ~ t i e s .

11. i s c e l l aneous. The provisf on8 of this ?Jst~ce of Additicn shaY1 run with aII of t h e M d a d Ter r i to ry . che P r o j e c t and t h e Corporation P r o p e r t i e s , s h a i i be binding upon a l l Persons having o r a c q u i r i n g a n y i n t e r e s t i n t h e Added T e r r i t o r y , t h e P r o j e c t , t h e Corpora t i en Proper t ies , o r any p a r t t h e r e o f , s h a l l i n u r e t o t h e benefit of and Surder? every portiori of t h e Added T e r r i t o r y , t h e Pzoject , the Corporation Proper t i e s , and any i n t e r e s t t h e r e i n , and s h a l l inure t o t h e b e n e f i t o f , be b inding upon, and may be enforced by any Cwner, Declarant , each s u c c e s s o r i n interest of Declarant, t h e Corporation, t h e A r c h i t e c t u r a l Cornsittee, and t h e i r success ive owners and a s s i g n s . Except t o otherwise provided he re in , the terms i n t h i s Not ice of Addition s h a l l have t h e same meaninqs a s a r e given such t e r n s Sy the Declaration. Except as ot!?erwise e x p r e s s l y provided herein, a l i of t h e provis ions of t h r D e c l a r ~ t i c n are hereby incorporated b y r e fe rence a s i f f u l l y s e t f o r t h R e r e z n .

This Notice of Addi t ion h a s been executed to be e f f e c t i v e as of the d a t e of its Recordation.

THE WILLIkY LYON COMPANY, a C a l i f s r n i a cormoration

_r- _ ' By: , ey, ,.,. *--,---- . . -----

.,. , - ,. id ,' ,-a * Its: - 5 , L . . , I

D e s c r i p t i o n : O r a n g e , CA Documen t - Y e a r . D o c I D 1989.274290 P a g e : 5 o f 10 O r d e r : 13 C o m m e n t :

-

STATE OF CALIFCRNIA 1 ) as.

COUNTY OF ORANGE 1

satirfacta with in ins behalf of reln named. and acknowledued to me that it.

WITNESS my hand andio_;fficizil s . r1

Description : Orange, CA Document-Year. DocID 1989.274290 Page : 6 of 10 Order: 13 Comment:

EXHIBIT "A"

DRAWINGS DEPXCTIHG AND ASSIGNING ARPAS IN- T E W W

T h e E x c l ~ s i v e Use Common A r e a s for patio purlpasea, a s depicted and assigned on t h i s Euhib i t "Au to %he Notice of Addi t ion f o r CaaafLna, o h a l l each con ta in a t l e a e t the number of s q u a r e feet in me p a r i o areas a s aro n i r u w j : url Lira r i r a w i r i q a t t a c h e d h e r e t o . The E x c l u s i v ~ Use Corunon Areas for p t t i o purposes are boundud by a plane loca ted e i g h t (8) f e e t belaw t h e s u r f a c e of the growid to a height of sixteen ( 1 6 : feat, more or less, t o the foundat4-ns and s t r c l c t u r e s o i the r e s i d e n t i a l bui ld ings , tc the * . ~ t e r i o r s u r f a c e s af *,be fenzas surrounding the pat lo areas , a s such f aundat ions , structures and fences a r e i n i t i a l l y cons tmcted by Deciarant . ' i \ e ~ s drav in s showing t h e patio areas con ta in on ly apgroxiaa2e diaenr1o;s.s and are not necessa r i ly drawn f c s ca l e . There is also reserved and conr~eyed by Declarant to t h o -.or of tr?e Condoutinium, t o which the Exclusive U s e Commor~ Area ~ s t i o is appur tenan t , an encroachment easement aa to actual location onto the common Area fcr any such p a t i o that may exceed t i e dimensions shown on t h e at tached drawing.

Description : O r a n g e , CA Documen t - Y e a r . DocID 1989.274290 P a g e : 7 o f 10 O r d e r : 13 Comment:

- - - - - - - -

EXHIBIT "A" PATIO EXCLUSIVE USE COMMON AREA

PHASE 3

'P - indicates Patio and assiyced Unit number.

UNIT TYPE BR

UNlT TYPE CR

UNlT TYPE C

UNIT N F E 8

D e s c r i p t i o n : O r a n g e , CA D o c - n t - Y e a r . DocID 1 9 8 9 . 2 7 4 2 9 0 P a g e : 8 o f 1 0 O r d e r : 13 Comment :

- - - -- - -- -

EXHIBIT "8"

DRAWINGS DEPICTING AN3 ASSIGNING E X C W S I V E USE COMfOlV NCZA UNCOVERED PNUCING SPACES

-=TERRITORY

Description: Orange, CA Documen t-Year. DocID 1989.274290 Page: 9 of 10 Order: 13 Comment:

- -- - - -

89-274290 EXHlBlT "5"

EXCLUSIVE USE COMMON AREA OPEN PARKING SPACES

CASAFlNA Phase 3

'P - ' indicates Park~ng Space and assigned ,Un~t number. I

Description: Orange, CA Document-Year. DocID 1989.274290 Page: 10 o f 10 Order: 13 Comment: I

- -