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Recording Requested By And When Recorded Mail To: KULIK GOTTESMAN & SIEGEL LLP 15303 Ventura Boulevard, Suite 1400 Sherman Oaks, California 91403 (310) 557-9200 Attn: GLEN L. KULIK, ESQ. RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS WESTLAKE NORTH PROPERTY OWNERS’ ASSOCIATION a nonprofit mutual benefit corporation

February 2014 [This set contains the Civil Code section revisions as reflected in

the “First Amendment to the Restated Declaration of CC&Rs” recorded in the Ventura Recorder’s Office No. 2014-0212-00017024-0]

February 2015 [This set contains the corrected Exhibit A, recorded in the Ventura Recorder’s Office

No.20150220-00023780-0]

If this document contains any restriction based on race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.2 of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

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TABLE OF CONTENTS

Page

PREAMBLE ................................................................................................................................... 1 DEFINITIONS .................................................................................................................... 2

1.1 Annual Meeting .......................................................................................... 2 1.2 Architect ...................................................................................................... 2 1.3 Architectural Committee ............................................................................. 2 1.4 Architectural Guidelines ............................................................................. 2 1.5 Articles of Incorporation ............................................................................. 2 1.6 Association Property ................................................................................... 2 1.7 Assessment .................................................................................................. 2 1.8 Association .................................................................................................. 2 1.9 Board and Board of Directors ..................................................................... 2 1.10 Budget ......................................................................................................... 2 1.11 Bylaws ......................................................................................................... 2 1.12 Common Area ............................................................................................. 2 1.13 Common Expenses ..................................................................................... 2 1.14 Common Funds ........................................................................................... 3 1.15 Development ............................................................................................... 3 1.16 Declaration .................................................................................................. 3 1.17 Drainage Course .......................................................................................... 3 1.18 Governing Documents ................................................................................ 3 1.19 Home ........................................................................................................... 3 1.20 Improvements.............................................................................................. 3 1.21 Lot ............................................................................................................... 3 1.22 Manager ...................................................................................................... 3 1.23 Member ....................................................................................................... 3 1.24 Notice .......................................................................................................... 3 1.25 Operating Accounts..................................................................................... 3 1.26 Owner .......................................................................................................... 4 1.27 Person .......................................................................................................... 4 1.28 Regular Assessment .................................................................................... 4 1.29 Reserves or Reserve Accounts .................................................................... 4 1.30 Rules ........................................................................................................... 4 1.31 Visible ......................................................................................................... 4 1.32 Voting Power .............................................................................................. 4 1.33 Yard ............................................................................................................. 4 1.34 Definition of Other Terms .......................................................................... 4

ARTICLE 2 ..................................................................................................................................... 4

MEMBERSHIP RIGHTS AND LIMITATIONS ............................................................... 4 2.1 Declaration is Binding. ............................................................................... 4 2.2 Undivided Interest Conveyed. ..................................................................... 5

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2.3 Membership. ............................................................................................... 5 2.4 Voting Rights. ............................................................................................. 5 2.5 Suspension of Rights................................................................................... 5 2.6 Inspection of Records. ................................................................................. 5 2.7 Ingress, Egress and Support. ....................................................................... 5 2.8 Easement of Enjoyment. ............................................................................. 5 2.9 Utility Rights. .............................................................................................. 6 2.10 No Right to Divide. ..................................................................................... 6 2.11 Combining Lots .......................................................................................... 6 2.12 No Incorporation of Common Area. ........................................................... 6

ARTICLE 3 ..................................................................................................................................... 6

EASEMENTS ..................................................................................................................... 6 3.1 Open Space Easements (Restricted Use Areas) .......................................... 6 3.2 Common Driveway Easements ................................................................... 6

ARTICLE 4 ..................................................................................................................................... 7

ARCHITECTURAL CONTROL ........................................................................................ 7 4.1 Architectural Committee ............................................................................. 7 4.2 Request for Approval. ................................................................................. 7 4.3 Right to Decorate. ....................................................................................... 7 4.4 Prior Approval ............................................................................................ 7 4.5 Indemnity. ................................................................................................... 8 4.6 Compliance With Laws. .............................................................................. 8 4.7 Notice of Completion. ................................................................................. 8 4.8 Acoustical Limitations. ............................................................................... 8 4.9 Window Coverings. .................................................................................... 8 4.10 Alteration and Decoration of Common Area. ............................................. 8 4.11 Alteration of Exterior .................................................................................. 8 4.12 Drainage. ..................................................................................................... 9 4.13 Window Guards. ......................................................................................... 9 4.14 Mechanics Liens. ........................................................................................ 9 4.15 No Right to Divide. ..................................................................................... 9 4.16 Combining Lots. ......................................................................................... 9 4.17 Decisions and Record Keeping ................................................................... 9 4.18 Appeals ....................................................................................................... 9

ARTICLE 5 ................................................................................................................................... 10

USE RESTRICTIONS ...................................................................................................... 10 5.1 Antennas and Electrical Wiring. ............................................................... 10 5.2 Architectural Restrictions. ........................................................................ 10 5.3 Barbecues; Exterior Fires. ......................................................................... 10 5.4 Consent Revocable. ................................................................................... 10 5.5 Drilling; Mining Operations. .................................................................... 10

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5.6 Laundry. .................................................................................................... 10 5.7 Nuisance. ................................................................................................... 10 5.8 Occupancy Restriction. ............................................................................. 11 5.9 Obstruction of Common Areas. ................................................................ 11 5.10 Pets. ........................................................................................................... 11 5.11 Residential Use. ........................................................................................ 12 5.12 Sale of Home. ............................................................................................ 12 5.13 Sanitary Conditions. .................................................................................. 13 5.14 Signs. ......................................................................................................... 13 5.15 Trash; Refuse. ........................................................................................... 13 5.16 Use of Independent Contractors. ............................................................... 13 5.17 Horses. ...................................................................................................... 13

ARTICLE 6 ................................................................................................................................... 13

LEASING OF HOMES..................................................................................................... 13 6.1 Term of Lease. .......................................................................................... 13 6.2 Indemnity. ................................................................................................. 13 6.3 Unlawful Detainer to Enforce Rules ......................................................... 13

ARTICLE 7 ................................................................................................................................... 14

VEHICLES AND PARKING ........................................................................................... 14 7.1 Parking. ..................................................................................................... 14 7.2 Garages...................................................................................................... 14 7.3 Impeding Access. ...................................................................................... 14 7.4 Repair of Vehicles. .................................................................................... 14 7.5 Commercial Vehicles. ............................................................................... 14 7.6 Towing. ..................................................................................................... 15

ARTICLE 8 ................................................................................................................................... 15

OBLIGATION OF OWNERS .......................................................................................... 15 8.1 Repair and Maintenance by Owner. .......................................................... 15 8.2 Personal Injury or Property Damage. ........................................................ 15 8.3 Owner Liability for Damage ..................................................................... 15 8.4 Transfer of Ownership .............................................................................. 16

ARTICLE 9 ................................................................................................................................... 16

RULES ENFORCEMENT ............................................................................................... 16 9.1 Enforcement of Governing Documents. ................................................... 16 9.2 Power to Adopt Rules. .............................................................................. 16 9.3 Power to Discipline for Breach. ................................................................ 16 9.4 Fines. ......................................................................................................... 16 9.5 Hearing Procedures. .................................................................................. 16 9.6 Failure to Pay Fine .................................................................................... 17

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9.7 Obligation to Follow Rules. ...................................................................... 17 9.8 Fines Constitute Assessment..................................................................... 17 9.9 Cumulative Remedies. .............................................................................. 17 9.10 Failure Not A Waiver. ............................................................................... 17 9.11 Remedy at Law Inadequate ....................................................................... 18 9.12 Dispute Resolution. ................................................................................... 18

ARTICLE 10 ................................................................................................................................. 19

POWERS AND DUTIES OF ASSOCIATION ................................................................ 19 10.1 Management of the Development. ............................................................ 19 10.2 Maintenance of Common Area ................................................................. 19 10.3 Committees. .............................................................................................. 19 10.4 Powers and Duties Generally. ................................................................... 19 10.5 Borrow Money. ......................................................................................... 19 10.6 Litigation. .................................................................................................. 19 10.7 Limitations on Sales and Expenditures. .................................................... 20 10.8 Powers and Duties Specifically. ................................................................ 20 10.9 Delegation to Manager. ............................................................................. 22 10.10 Right of Entry to Inspect .......................................................................... 22 10.11 Limitation of Liability. ............................................................................. 23 10.12 Indemnification. ....................................................................................... 23 10.13 Personal Property of Association. ............................................................ 23 10.14 Nonprofit Character of Association. ........................................................ 23 10.15 Annexation. .............................................................................................. 23

ARTICLE 11 ................................................................................................................................. 23

BUDGETS, RESERVES AND FINANCIAL STATEMENTS ....................................... 23 11.1 Review of Accounts. ................................................................................. 23 11.2 Operating Budget. ..................................................................................... 24 11.3 Annual Review. ......................................................................................... 25 11.4 Insurance Information ............................................................................... 25 11.5 Lien Policies. ............................................................................................. 25 11.6 Reserve Study. .......................................................................................... 25 11.7 Budgets and Financial Statements ............................................................ 25

ARTICLE 12 ................................................................................................................................. 26

ASSESSMENTS ............................................................................................................... 26 12.1 Regular Assessment. ................................................................................. 26 12.2 Special Assessment. .................................................................................. 26 12.3 Emergency Assessments. .......................................................................... 27 12.4 Deposit of Assessments. ........................................................................... 27 12.5 Reserves. ................................................................................................... 28 12.6 Delinquencies. ........................................................................................... 29 12.7 Liability for Assessments. ......................................................................... 29

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12.8 No Offsets. ................................................................................................ 30 12.9 Waiver of Use. .......................................................................................... 30 12.10 Waiver of Homestead. .............................................................................. 30

ARTICLE 13 ................................................................................................................................. 30

ASSESSMENT LIENS ..................................................................................................... 30 13.1 Enforcement of Assessments. ................................................................... 30 13.2 Attorneys’ Fees. ........................................................................................ 30 13.3 Assessment Becomes Lien. ....................................................................... 30 13.4 Foreclosure ................................................................................................ 31 13.5 Additional Remedies. ................................................................................ 31 13.6 Waiver of Objection. ................................................................................. 31 13.7 Payment by New Owner of Past Due Assessments .................................. 31 13.8 Subordination to Trust Deeds ................................................................... 31

ARTICLE 14 ................................................................................................................................. 32

ADMINISTRATION ........................................................................................................ 32 14.1 Annual Meetings. ...................................................................................... 32 14.2 Board Meetings. ........................................................................................ 32 14.3 Conduct of Meetings. ................................................................................ 32

ARTICLE 15 ................................................................................................................................. 32

INSURANCE .................................................................................................................... 32 15.1 Authority to Purchase. ............................................................................... 32 15.2 Casualty. .................................................................................................... 32 15.3 Additional Provisions. .............................................................................. 32 15.4 Public Liability and Property Damage. ..................................................... 34 15.5 Directors and Officers ............................................................................... 34 15.6 Choice of Contractor. ................................................................................ 34 15.7 Choice of Insurance Company. ................................................................. 34 15.8 Collecting Insurance Proceeds. ................................................................. 34 15.9 Act Increasing Insurance Premiums. ......................................................... 34 15.10 Fidelity Insurance. .................................................................................... 35 15.11 Owner Insurance. ...................................................................................... 35 15.12 Waiver by Members. ................................................................................ 35

ARTICLE 16 ................................................................................................................................. 35

AMENDMENTS .............................................................................................................. 35 16.1 Amendment. .............................................................................................. 35 16.2 Confirmation of Approval ......................................................................... 35

ARTICLE 17 ................................................................................................................................. 35

NATURAL DRAINAGE COURSES ............................................................................... 35

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17.1 Purpose. ..................................................................................................... 36 17.2 Inclusion of Real Property Served by the Arroyo ..................................... 36 17.3 Maintenance of the Arroyo ....................................................................... 36 17.4 Arroyo Assessments .................................................................................. 36

ARTICLE 18 ................................................................................................................................. 37

MISCELLANEOUS ......................................................................................................... 37 18.1 Headings. .................................................................................................. 37 18.2 Liberal Construction. ................................................................................ 37 18.3 Number and Gender. ................................................................................. 37 18.4 Severability. .............................................................................................. 37 18.5 Conflicting Provisions .............................................................................. 37 18.6 No Public Rights in the Development. ..................................................... 37 18.7 Successors and Assigns. ............................................................................ 37 18.8 Term of Declaration. ................................................................................. 37 18.9 Attorneys' Fees. ......................................................................................... 38 18.10 Notices. ..................................................................................................... 38

EXHIBITS: A Land Classification B Cost Sharing of Arroyo Maintenance (Other than WNPOA)

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RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS WESTLAKE NORTH PROPERTY OWNERS’ ASSOCIATION a non-profit mutual benefit corporation

THIS DECLARATION is made as of September 30, 2011 by the Westlake North Property Owners’ Association ("Association") and all Members of the Association. PREAMBLE

A. The Association is comprised of all Persons who own Lots in that certain common interest development known as Westlake North located in the City of Thousand Oaks, County of Ventura, State of California, more particularly described in Exhibit A hereto.

B. The Association intends by this instrument to revoke the Declaration of Covenants, Conditions and Restrictions of Westlake North recorded on December 13, 1976 in Book 4729, page 885 in the Office of the County Recorder for the County of Ventura, as well as any and all amendments thereto including without limitation the First Amendment recorded on May 8, 1998 as Instrument No. 98-072302, the Second Amendment recorded on February 13, 2002 as Instrument No. 2002-0035290-00, and the Amended Incorporation of Declaration recorded on April 9, 2003 as Instrument No. 2003-0118205-00, and to substitute in their place this Declaration.

C. The Association was incorporated under the laws of the State of California as a nonprofit mutual benefit corporation for the purpose of performing those acts described in the Governing Documents, as same may be amended from time to time, as well as those acts required under California law.

D. This Declaration is intended to:

(i) Be for the benefit, enhancement and protection of the Development;

(ii) Be for the benefit of all Owners of Lots in the Development;

(iii) Run with the land and be binding upon all Lots in the Development and all Persons having or acquiring any right, title or interest in any Lot;

(iv) Inure to the benefit of and be binding upon each Owner and his or her

family members, tenants, occupants, successors, transferees, heirs, trustees, invitees, guests, and all like Persons.

NOW, THEREFORE, the Association and its Members adopt this Declaration as of the

date first written above. ARTICLE 1

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DEFINITIONS

1.1 “Annual Meeting” shall mean the annual meeting of the Owners for the purpose of electing, in accordance with the Bylaws, members of the Board of Directors.

1.2 “Architect” shall mean a Person registered or licensed to practice architecture.

1.3 “Architectural Committee” shall mean the committee created pursuant to Section 4.1 hereof.

1.4 “Architectural Guidelines” shall mean regulations adopted by the Board of Directors pertaining to the alteration, remodel or construction of improvements on Lots as well as the application and approval process described in Article 4 hereof.

1.5 “Articles of Incorporation” shall mean the Articles of Incorporation of the Association as amended from time to time.

1.6 “Association Property” shall refer both to the personal and real property, if any, title to which is owned by the Association.

1.7 “Assessment” shall mean any assessment levied or charged against an Owner and/or a Lot in accordance with the provisions of this Declaration.

1.8 “Association” shall mean Westlake North Property Owners’ Association, a California nonprofit mutual benefit corporation. The Association shall include, when the context requires, its officers, directors, and other duly authorized representatives and agents.

1.9 “Board and Board of Directors” shall mean the Board of Directors of the Association as it may from time to time be constituted.

1.10 “Budget” shall mean a pro forma operating budget prepared in accordance with this Declaration and California law.

1.11 “Bylaws” shall mean the bylaws of the Association as restated or amended by the membership from time to time.

1.12 “Common Area” shall mean all real property owned by the Association or by

all Members as tenants in common, or is under the control and management of the Association, for the common use and enjoyment of the Owners. The Common Area of the Development shall be as shown in Exhibit A hereto.

1.13 “Common Expenses” shall mean the costs, expenses and charges incurred by

the Association in performing its rights and duties as required or permitted under the Governing Documents and California law.

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1.14 “Common Funds” shall mean all funds collected or received by the Association from all sources, except for those funds which are allocated to or otherwise kept in a reserve account.

1.15 “Development” shall mean all real property listed in Exhibit A and the Arroyo described in Article 17.

1.16 “Declaration” shall mean this Restated Declaration of Covenants, Conditions and Restrictions including any amendments thereto.

1.17 “Drainage Course” shall mean those areas designed for the drainage of waters from more than one Lot and so identified in any Subdivision Map or land use classification.

1.18 “Governing Documents” shall mean the Declaration, Articles of Incorporation, Bylaws, Rules and Regulations, and Architectural Guidelines of the Association as they are amended from time to time. If there is any inconsistency between these documents, the provisions of the Articles will prevail over the Declaration; the Declaration will prevail over the Bylaws; the Bylaws will prevail over the Architectural Guidelines; and the Architectural Guidelines will prevail over the Rules.

1.19 “Home” shall mean any single family home and related structures located on a Lot.

1.20 “Improvements” shall mean all buildings, structures, and landscaping, including hardscape, softscape, and grading, and all other physical components now or hereafter constructed in the Development,

1.21 “Lot” shall mean an unimproved parcel of land or the parcel of land on which a Home is or may be situated. Any reference below to a Lot shall include the Home located thereon, if any.

1.22 “Manager” shall mean any individual or company employed by the Association to manage the operation and maintenance of the Development and the Association.

1.23 “Member” shall mean an Owner who by reason of his recorded ownership of a

Lot holds a membership in the Association.

1.24 “Notice” shall mean the providing of written notice by and among the Association, its representatives, and the Owners. Notice shall always be in writing and may be given by personal delivery, first class mail, email, facsimile, or, in the case of meeting notices, by posting in conspicuous locations around the Development.

1.25 “Operating Accounts” shall mean those accounts into which the Association's

Assessments are deposited and out of which the Association's normal operational expenses are paid.

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1.26 “Owner” shall mean any person, firm, corporation or other legal entity in which fee title to a Lot is vested, as shown by the Official Records of the Office of the County Recorder. If the Owner is an entity, then the trustee(s) of the trust, president of the corporation, managing member of the limited liability company, or general partner(s) of the partnership, shall be entitled to exercise the rights of the Owner for the entity.

1.27 “Person” shall mean a natural person, corporation, partnership, trust, association or other legal entity.

1.28 “Regular Assessment” shall mean an Assessment duly levied by the Association each year, which is payable quarterly, against the Owners and their Lots as described in this Declaration to pay for the Common Expenses.

1.29 “Reserves or Reserve Accounts” shall mean those monies set aside in a separate account for the long-term repair, replacement or restoration of the major components of the Development in accordance with the provisions of this Declaration.

1.30 “Rules” shall mean the rules and regulations (including Architectural Guidelines) adopted from time to time by the Board of Directors to further carry into effect the provisions of the Declaration and the Bylaws. The Rules may not be inconsistent with the Declaration or the Bylaws, as described in this Declaration and Sections 4340 through 4370 of the Civil Code. Furthermore, an operating rule means a regulation adopted by the Board that applies generally to the management and operation of the common interest development or the conduct of the business of the association. Article 9.2 of this Declaration contains a brief description of the process for Rule making.

1.31 “Visible” shall mean capable of being seen with the naked eye at any time from any public or private property within the Development’s boundaries including from any Lots, Yards, Common Areas, streets, walks, structures, balconies, decks, windows, and vehicles.

1.32 “Voting Power” shall mean the total number of Members entitled to vote including those Members whose voting rights have been suspended.

1.33 “Yard” shall mean that portion of a Lot other than the Home thereon.

1.34 “Definition of Other Terms” Unless the context clearly requires otherwise, all other terms used in this Declaration and in the Bylaws are intended to be defined as set forth in Section 4075 of the Civil Code.

ARTICLE 2 MEMBERSHIP RIGHTS AND LIMITATIONS

2.1 Declaration is Binding. Any conveyance, transfer, sale, assignment, or lease of

a Lot in the Development shall be deemed automatically to incorporate the provisions of the Governing Documents. This Declaration shall run with the land.

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2.2 Undivided Interest Conveyed. No undivided interest in the Common Area, membership in the Association, or easement, or fee title to the respective Lots, shall be separated or separately conveyed. Each such undivided interest, membership and easement shall be deemed to be conveyed or encumbered with its respective Lot even though the description in the instrument of conveyance or encumbrance may refer only to the Lot.

2.3 Membership. Each Person shall automatically, upon becoming an Owner of a Lot, become a Member of the Association and shall remain a Member until he shall cease to be an Owner; provided, however, that notwithstanding any other provision of this Declaration, any Person who acquires a Lot by any means shall be bound by the restrictions in this Declaration but shall not be entitled to the rights, benefits and privileges of Membership, if at the time of acquisition any former Owner of that Lot has failed to pay any portion of his Assessments due under this Declaration to the Association and the debt remains unpaid. If and only if the prior debt is paid shall the new Owner become entitled to receive the rights, benefits and privileges of membership.

a. No Membership for Security Interests. The foregoing is not intended to include Persons who hold such an interest in a Lot merely as security for the performance of an obligation.

b. No Transfer of Membership. No Owner shall transfer, pledge or alienate his

membership in the Association, except upon the transfer of the fee interest in the Lot to which it is appurtenant, and then only to the transferee of such fee interest. Any attempt to make a prohibited transfer is void.

2.4 Voting Rights. In all matters submitted for a vote, including the election of

directors, Owners shall be entitled to one vote per Lot as provided in the Bylaws.

2.5 Suspension of Rights. The rights and privileges of membership may be suspended by the Board, after hearing, for any violation of the Governing Documents.

2.6 Inspection of Records. Members shall have the right to inspect records of the Association as provided for in the Bylaws.

2.7 Ingress, Egress and Support. In accordance with Section 4505 of the California Civil Code, each Owner shall have a nonexclusive easement, appurtenant to and for the benefit of his Lot, for ingress, egress and support over, across and through the Common Area, and every portion of any Lot within the Development required for the structural support of his Lot.

2.8 Easement of Enjoyment. Every Owner shall have a nonexclusive easement of enjoyment in and to the Common Area. Such easement shall be appurtenant to and for the benefit of his Lot, subject to the right of the Board of Directors to:

a. Establish Rules: Establish uniform Rules pertaining to use of the Common Areas.

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b. Borrow Money: Borrow money for the purpose of performing any rights or duties under the Governing Documents or California law.

c. Impose Discipline: Impose discipline upon any Owner or his or her residents,

family members, guests and invitees under the circumstances described in Article 9 below.

d. Restrict Access: Impose reasonable Rules on access to portions of the

Development not required for ingress or egress to a Home.

2.9 Utility Rights. Each Owner, in conjunction with the City of Thousand Oaks, shall be required to maintain, service, repair and replace all of the pipes for sanitary sewers, storm drains, water, electricity, gas, telephone, and television cables which service his or her Lot. Each Owner shall have a license to enter upon the Common Area or another Owner’s Lot if necessary to gain access in order to perform such maintenance and repair duties. Likewise, the Association shall have a license to enter upon any Lot if necessary to gain access in order to perform such maintenance and repairs which are the Association’s responsibility.

2.10 No Right to Divide. No Owner shall be permitted to divide his or her Lot.

2.11 Combining Lots. Two or more Lots may be combined but only with the prior written approval of the Board of Directors.

2.12 No Incorporation of Common Area. No Owner shall be permitted to take or incorporate into or as part of his Lot any portion of the Common Area. ARTICLE 3

EASEMENTS

3.1 Open Space Easements (Restricted Use Areas). Easements for open space (i.e., preservation of the area in its natural state) are hereby granted to the Association on, over and across portions of Lots within the Development. These easements were redesignated as “Restricted Use Areas” on the recorded Subdivision Maps. All development rights to construct Structures within said open space easements are hereby granted to the City of Thousand Oaks for the duration of said easements. Owners of lots with a “Restricted Use Area” designation are allowed use of this Area only for passive use, including the responsibility for brush clearing. The following are not allowed in these Areas: grading, orchards, structures of any kind, and concrete pads.

3.2 Common Driveway Easements.

a. Certain of the Lots shown on the recorded Subdivision Maps require the use of

driveway areas in common with other Lots.

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b. Each Owner who is entitled to the use of driveway area in common with other Owners shall be jointly responsible with such other Owners for the care and maintenance of such common driveway area including the maintenance of all shrubbery, plantings and landscaping of every kind, and of all paved area and structures of every kind within such area.

ARTICLE 4 ARCHITECTURAL CONTROL

4.1 Architectural Committee. The Board shall appoint an Architectural

Committee comprised of three or more Persons at least one of whom shall be a Board member. The Committee may establish a relationship with an architect licensed by the State of California whose role will be to render advice with respect to any plan submittals or other issues which are brought before the Committee.

4.2 Request for Approval. All requests for the Association to approve any work, remodeling or improvement required in this Article, or elsewhere in this Declaration, shall be submitted in writing to the Architectural Committee. No work shall be commenced by any Owner within the scope of this Article 4 or as otherwise required in this Declaration unless and until it has been approved in writing by the Committee.

4.3 Right to Decorate. Each Owner shall have the exclusive right to paint, repaint, tile, wax, paper or otherwise furnish and decorate the interior of any Home on his Lot.

4.4 Prior Approval. No construction, repair, alteration, improvement, or remodeling may commence on any Lot, in any Yard, or on the outside of any Home, unless and until the prior written approval of the Architectural Committee has been given, if such work is related to or could affect any of the following: (i) the planting or removal of any trees, shrubs, hedges, or bushes (not including routine planting or replanting of flowers), (ii) the removal or construction of any wall, fence or other structure, (iii) any other Lot or Home’s resistance to water intrusion, (iv) the mechanical systems, foundation or structural integrity of another Lot or Home, (v) the exterior uniform appearance of any Home or Lot (although repainting is permitted without approval if the same color is being used), (vi) the level of noise transference to another Lot, (vii) the Common Areas, or (viii) the right of any other Owner to the full ownership, occupancy, and use of his Lot. Any Owner wanting to do such work shall do the following:

a. Submit detailed plans and specifications to the Architectural Committee, and any additional reports, surveys, studies and documentation reasonably requested by the Committee, for its approval;

b. Read and agree to be bound by any Architectural Guidelines in force; c. Not exceed the scope of the written approval given;

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d. Adhere to any reasonable rules and conditions imposed by the Architectural Committee to ensure the project is commenced, performed and completed in an expeditious manner without undue interference with the rights of other residents of the Development; and

e. Submit payment to the Association to cover third party costs as per the fee

structure outlined in the Architectural Guidelines. 4.5 Indemnity. The approval of a project by the Board or Architectural Committee

shall not (i) relieve the Owner of the duty to satisfy the terms of the Governing Documents and all local, state and federal laws; (ii) provide a defense to a legal action by the Association, or (iii) give rise to any liability on the part of the Association or its representatives. Owner will indemnify, defend and hold harmless the Association, the Board members, the Committee members, and all other agents and representatives of the Association, from any loss, damage, claim, liability, personal or bodily injury, wrongful death, costs or attorneys’ fees arising from or related to any approval given by the Association under this Declaration or the work performed by Owner.

4.6 Compliance With Laws. Notwithstanding any approval given under this Article 4, it is the Owner and not the Association who must ensure that the final product meets all applicable laws and regulations, is free of defects, meets all provisions of the Governing Documents, and does not disturb the quiet enjoyment of any other Owner.

4.7 Notice of Completion. Each Owner shall, upon the completion of any work for which approval was required under this Article 4, promptly notify the Committee in writing. Upon receipt of the notice, the Architectural Committee will have the right, but not the duty, to inspect the finished work within 45 days to determine compliance with the approval given.

4.8 Acoustical Limitations. During the course of construction it is the policy of the Association that nothing be done on any Lot that is contrary to the minimum noise standards established by the City of Thousand Oaks.

4.9 Window Coverings. Appropriate window coverings may be installed by each Owner on all windows of his Home. No window shall be covered by paint, foil, sheets or similar items.

4.10 Alteration and Decoration of Common Area. No Owner shall cause to be made any alteration, addition or modification to any portion of the Common Area or Association Property.

4.11 Alteration of Exterior. No Owner shall paint or make any permanent, affixed alteration or modification to the exterior of his Home or Lot, without the prior written consent of the Architectural Committee; provided, however, if and only if the Owner is going to paint all or a portion of his or her Home the same color as existing, no approval is required to perform such painting work.

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4.12 Drainage. No drainage pattern, pipes or channels may be altered without the prior written approval of the Architectural Committee.

4.13 Window Guards. No window guards or bars shall be installed without the prior written approval of the Architectural Committee.

4.14 Mechanics Liens. No labor performed or services or materials furnished with

the consent of, or at the request of, an Owner or his or her agent or contractor, shall be the basis for the filing of a lien against the Common Area or Lot of any other Owner in the Development.

a. Common Areas. Labor performed or services or materials furnished for the Common Areas, if duly authorized by the Board, shall be deemed to be performed or furnished with the express consent of each Owner within the Development.

b. Indemnity. Contracting Owners shall indemnify, defend and hold harmless all

other Owners and the Association from and against claims, liabilities, losses, damages, costs and attorneys’ fees arising from the claim of any lien against other Owners or the Association for labor performed or for materials furnished in work on contracting Owner's Lot.

4.15 No Right to Divide. No Owner shall be permitted to divide his or her Lot.

4.16 Combining Lots. Two or more Lots may be combined but only with the prior

written approval of the Board of Directors.

4.17 Decisions and Record Keeping. Decisions of the Architectural Committee shall be made in writing as stated in the Architectural Guidelines. Notice of the decision shall be delivered to Owner with a copy to the Board forthwith after the decision is made. The Association shall retain a written record of all submissions made for its approval and all decisions made.

4.18 Appeals. Owners shall have the right to appeal which is described in Section 4765 of the Civil Code. The right to appeal shall be waived unless Owner notifies the Board of his or her intent to appeal within fourteen (14) days of the date he or she received written notice of disapproval from the Architectural Committee. Likewise, even in the absence of an appeal by the Owner, the Board may intervene and schedule a hearing to consider reversing the decision of the Architectural Committee if (i) the Board so notifies the Owner and the Architectural Committee within fourteen (14) days of the date the Board receives a copy of the Committee’s decision, and (ii) the Board concludes the decision of the Committee violates the provisions of the Governing Documents or is otherwise contrary to the best interests of the Development as a whole.

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ARTICLE 5 USE RESTRICTIONS

5.1 Antennas and Electrical Wiring. Except as may be mandated by law, no

Owner shall cause to be installed, attached or hung (i) any electrical wires or equipment, (ii) television or radio transmitting or receiving antenna or dishes, (iii) air-conditioning units, or (iv) other like equipment or wiring, in or on any portion of the Common Area, or that is otherwise Visible, except as approved by the Architectural Committee.

a. Approval. In approving any installation the Architectural Committee may impose reasonable conditions on the placement and screening of the equipment. Such conditions shall be deemed reasonable so long as they do not (i) worsen the reception or effectiveness of the equipment, or (ii) increase the cost of maintenance or operation of the equipment.

b. Governmental Requirements. All radio, television, telephone or other electrical

equipment or appliances of any kind or nature or wiring therefor shall fully comply with local, state and federal laws.

5.2 Architectural Restrictions. Prior to commencing any construction, alterations

or improvements on a Lot which requires approval by the Architectural Committee under this Declaration, an Owner shall comply with all requirements of Article 4.

5.3 Barbecues; Exterior Fires. No barbeque may be located within five feet of any side or rear boundary line.

5.4 Consent Revocable. Any consent, approval or authorization, once given by the Association or its authorized representatives as permitted by this Declaration, shall be revocable (i) if the approval or consent was induced by a misrepresentation, or (ii) it is determined that the action taken by the Owner, notwithstanding the approval or consent, has caused injury or damage to, or otherwise is contrary to the health and welfare of, the Association or any of its Members.

5.5 Drilling; Mining Operations. The use of any portion of the surface of the Property for drilling operations, mining, water wells, or quarrying of any kind, including, but not limited to, oil well drilling, oil development or mining operations of any kind, is prohibited.

5.6 Laundry. No exterior clothesline shall be permitted on any Lot that is Visible.

5.7 Nuisance. No noxious, offensive or illegal activity shall be permitted, nor shall anything be done or placed anywhere in the Development which is or may become a nuisance or cause unreasonable embarrassment, disturbance or annoyance to other residents. Without limiting the foregoing, no Owner shall make or permit excessive disturbing noise which will unduly interfere with the rights, comfort or convenience of other Owners. If there is any dispute as to whether conduct constitutes a nuisance, the good faith decision of the Board shall be final and binding.

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5.8 Occupancy Restriction. It is the intent of the Association to establish

reasonable occupancy limitations on Lots for the benefit and welfare of all Owners.

a. Permanently Reside. For purposes of this Section “permanently reside” shall mean the use, residency or occupancy of any Home by any Owner, member of an Owner's family, tenant, occupant, resident user or other person thereof for more than thirty (30) consecutive days or more than sixty (60) aggregate days, whether or not consecutive, in any one calendar year.

b. Maximum Number. The maximum number of persons including, without

limitation, Owners, members of an Owner's family, tenants, occupants, residents or other users who may permanently reside in any Home in the Development at any point in time is two (2) persons per bedroom located in each Home.

c. Guests. This Section shall not prohibit an Owner or resident from having

temporary guests occupy or visit any Home; provided, however, that no Home shall be used by a corporate Owner on an ongoing basis as temporary lodging for employees, guests, clients or customers. If at any time a temporary guest becomes a permanent resident of any Home and is thereby in violation of this Section, the Board shall have the right to enforce these occupancy restrictions.

5.9 Obstruction of Common Areas. No Common Area shall be obstructed or used

for other than its intended purpose except as designated by the Board.

5.10 Pets. No animal, bird or reptile may live within the Development except as expressly set forth below:

a. Dogs and cats (in any combination not exceeding a total of five) are permitted so long as they are domestic household pets only.

b. An Owner may keep birds (in cages only), fish, and other usual household pets

of the type which do not regularly leave the Home provided they are maintained in reasonable numbers.

c. No pet may be kept on any Lot which in the subjective opinion of the Board

threatens to disturb the quiet enjoyment, health, safety, or welfare of any other Owner.

d. No animal or fowl, other than a reasonable number of generally recognized house

and yard pets, shall be maintained on any Lot or within the Development. Permitted animals shall be kept, bred, or raised thereon solely as household pets or for private use and not for commercial purposes. No animal or fowl may be kept which makes an unreasonable amount of noise or otherwise becomes a nuisance to other Owners. Dogs and cats shall be allowed on the Common Area only when

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they are leashed or otherwise under the Owner’s restraint. No animal shall be left chained or otherwise tethered in front of a Lot or in the Common Area.

e. Each Owner of any animal within the Development shall be solely responsible

for that animal’s conduct. The Association, its officers and directors, and its employees and agents, shall have no liability (whether by virtue of this Declaration or otherwise) to any Owners, their family members, guests, invitees, tenants and contract purchasers for any damage or injury to persons or property caused by any animal. Each Owner shall be required to indemnify, defend and hold harmless the Association, its officers, directors, agents, committee members, and other residents of the Development, from any claim, loss, liability, personal or bodily injury, wrongful death, cost, expense or attorneys’ fees arising from or related to the Owner’s animals.

f. Each Owner shall be required to immediately remove and dispose of any litter

left by the pet. In no event shall any pet be permitted outside the Lot, unless the pet is on a leash not longer than eight (8) feet or is carried.

g. The Board may impose in the Rules reasonable additional regulations for the

control and keeping of animals within Lots and upon the Common Area to insure the same do not interfere with the quiet and peaceful enjoyment of the Development by other Owners and residents.

5.11 Residential Use. No Owner shall permit his Lot or any portion thereof to be

occupied or used for any purpose other than as a private single-family residence; provided, however, the use of a Lot for limited “home office” purposes is permitted so long as the conduct of business on the Lot is consistent with all laws and, in the good faith subjective opinion of the Board, the business does not interfere with the quiet enjoyment or rights of any other Owner and does not pose a threat to the health, welfare, or safety of the neighbors of the Lot or the membership. No commercial activities of any kind shall be conducted in any residence, structure or any portion of a Lot except for the following activities:

a. Filming Activities. Owner may allow his Lot to be used for commercial filming

or photography purposes. The nature and extent of filming activities are detailed in the Rules and the ordinances of the City of Thousand Oaks. The Owner must still receive prior written approval of the Board which may impose reasonable conditions.

b. Garage Sales. Rummage sales or garage sales may be permitted on a Lot. The

number of sales per year shall be defined in the Rules.

5.12 Sale of Home. Whenever a Lot is for sale, the Owner and/or his broker may hold an open house or broker's caravan provided they comply with any applicable provisions in the Rules, if any.

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5.13 Sanitary Conditions. Each Owner shall maintain in neat, clean and sanitary condition and in good repair his Lot and Home.

5.14 Signs. Except as otherwise required by law or permitted in the Governing Documents, no sign, flag, banner, notice, nameplate, card or advertisement of any kind shall be displayed to the public view on or from any Lot, Yard or Home.

5.15 Trash; Refuse. All garbage and trash shall be placed and kept in covered containers of a type and style which shall be approved by the city. In no event shall such containers be maintained so as to be Visible except to make the same available for collection. When trash receptacles are placed out front for collection, they may not remain in front for more than 24 hours.

5.16 Use of Independent Contractors. Owners may use independent contractors to perform work for the Owner. However, the Association is not responsible for the acts of such contractors employed by the Owner.

5.17 Horses. No horses or equestrian facilities are permitted anywhere in the Development. No livestock, including swine, sheep, cows, goats, llamas, alpacas, mules, burros, jacks, jennies, bulls and other animals defined as livestock in the Thousand Oaks Municipal Code, are permitted at any time.

ARTICLE 6 LEASING OF HOMES

6.1 Term of Lease. No Owner shall be permitted to lease his Home for an initial term of less than four (4) months. This restriction does not apply to the leasing of a Home by the Association or a commercial lender in possession of a Lot following a default on a mortgage or other lien, a foreclosure proceeding or any deed or other arrangement in lieu of foreclosure.

6.2 Indemnity. Each Owner who allows his Home to be occupied by anyone other than himself or herself agrees to indemnify, defend, and hold harmless the Association, its officers, directors, agents, invitees and other Members from any liability, claims, damages, losses, attorneys’ fees or costs arising from the acts and omissions of his or her occupants.

6.3 Unlawful Detainer to Enforce Rules. Any Owner who allows his Home to be non-Owner occupied shall be responsible for assuring compliance by such parties with the Association's Governing Documents. Failure of such persons to comply with any provision thereof, or failure of an Owner to take legal action against such person who is in violation of the Governing Documents (within ten (10) days after receipt of written demand so to do from the Board), shall entitle the Association, in its own name, to institute Unlawful Detainer proceedings on behalf of such Owner against his tenant. In such event the Association shall be deemed to be assignee of the lease for such purpose. Any expense incurred by the Association, including reasonable attorneys' fees and costs of suit, shall become a Special Assessment against the Home.

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ARTICLE 7

VEHICLES AND PARKING

7.1 Parking. The following parking regulations shall apply: a. All vehicles should normally be kept, placed and maintained inside of closed

garages. No recreational vehicle, trailer, camper, boat, aircraft, tractor, jetski, waverunner or similar item shall be permitted to remain in the Development unless kept, placed and maintained entirely within an enclosed garage. Alternately, with the prior approval of the Board the above vehicles may be placed so as not to be Visible. Temporary parking for loading and unloading of such vehicles in driveways or on the street is permitted only for a 48-hour period. The Association fully supports the City’s enforcement of parking on the public streets.

b. No machinery, trucks or equipment of any kind shall be placed, operated or

maintained upon or adjacent to any Lot except such machinery, trucks or equipment as is usual and customary in connection with the use, maintenance, construction or remodeling of a private residence or appurtenant structures in the Development. Such construction or remodeling work must have prior approval of the Architectural Committee.

c. The provisions of this Section 7.1 will be enforced under Article 9 hereof.

7.2 Garages. Garages shall be used only for parking purposes as described in

Section 7.1, for the storing of goods of Owners and occupants, and for such other purposes as may be permitted by the Board.

7.3 Impeding Access. No Owner, member of his family, tenant, guest, invitee, agent, licensee, or employees shall cause to be parked any vehicle in such a manner as to impede or prevent ready access to (i) any driveway, (ii) any parking area, or (iii) any another vehicle.

7.4 Repair of Vehicles. No Owner shall construct, repair, or maintain any motor

vehicle within any area Visible, except for emergency repairs thereto to the extent necessary for the movement of the vehicle to a proper repair facility.

7.5 Commercial Vehicles. Commercial vehicles shall not be parked or stored on any Lot (except inside a closed garage) or on the streets (the Association fully supports the City’s enforcement of restrictions and removal for parking on public streets) of the Development, except for a commercial vehicle providing services to an Owner or the Association, and in that event only for the time necessary to provide such services. No vehicle in the Development shall display to the public any advertisement, promotion or publicity for any person, product, or service, except for vehicles providing such service to a resident. For purposes of this

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Declaration, the term “commercial vehicle” shall mean any vehicle used or maintained for the transportation of persons or property for hire, compensation or profit.

7.6 Towing. For any violation of these restrictions the Board or its agents may cause a vehicle to be towed in a manner consistent with the California Vehicle Code.

ARTICLE 8

OBLIGATION OF OWNERS

8.1 Repair and Maintenance by Owner. Every Owner shall at his sole cost and expense:

a. Maintain, repair, replace and restore all portions of his Home so that it is in good repair and in a neat, clean, sanitary and attractive condition;

b. Maintain, repair, replace and restore all portions of his Lot and Yard, including

all landscaping and drainage thereon, so that it is in good repair and in a neat, clean, sanitary and attractive condition.

c. Maintain in an open and unobstructed condition all sewer, water, and drainage

pipes and lines serving his Lot or Home.

d. Subject to the provisions of Article 4, each Owner shall maintain, repair or replace as needed all drainage and related components (including drains and pipes, whether above or below ground), which are located in, on or underneath his Home or Lot. No drainage pattern, pipes or channels may be obstructed, blocked, or altered at any time.

e. Treat and repair his Lot, Yard and Home in the event dryrot, termites, mold, or

other infestations are found on the Lot as required by the City of Thousand Oaks and outlined in the Architectural Guidelines.

f. Treat and maintain all oak trees situated on his or her Lot pursuant to the

Architectural Guidelines and the City of Thousand Oaks Municipal Code. g. Clear brush from his or her Lot as required by the City of Thousand Oaks and

the County of Ventura.

8.2 Personal Injury or Property Damage. Each Owner indemnify, defend and hold harmless the Association and its officers, directors, committee members, agents and other representatives from all claims, damages, liabilities, costs and attorneys’ fees arising from or related to any personal injury, wrongful death, theft of any article, or property damage sustained on the Owner’s Lot.

8.3 Owner Liability for Damage. Each Owner is responsible for injuries and damages to the Association or any other Owner/resident caused by any condition, act, or omission on his or her Lot.

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8.4 Transfer of Ownership. Upon the assignment, sale, quitclaim or other transfer

of a Lot, the new Owner shall promptly notify the Association.

ARTICLE 9

RULES ENFORCEMENT

9.1 Enforcement of Governing Documents. The provisions of the Governing Documents may be enforced by the Association or by any Member. Either may bring an action in court at law or in equity. In addition, the Association may impose fines or suspend privileges in the event of a breach of the Governing Documents. In the event of a perceived violation the board may, in good faith, exercise its sound judgment in determining what action to take if any.

9.2 Power to Adopt Rules. The Board in its discretion may adopt Rules for the Development which are consistent with Sections 4340 through 4370 of the Civil Code. In the event it does so, the Rules shall have the same force and effect as though they were contained in the Declaration. Furthermore, the process for adopting proposed Rules or Rule changes must meet the requirements of Section 4360 of the Civil Code in that the Board shall provide written notice of the proposed addition or change to the Members at least 30 days in advance for comments before adopting the addition or change. The decision to adopt a new Rule or Rule change shall be made at a meeting of the Board after consideration of any comments made by Members.

9.3 Power to Discipline for Breach. The Board of Directors has the right to impose any or all of the following sanctions for a breach of the Governing Documents: suspend non-essential services normally provided by the Association, suspend voting rights, impose monetary fines, and seek judicial relief for failure of the Owner (or his family, tenants, guests and invitees) to comply with the Governing Documents. Except for nonpayment of Assessments, in which discipline is automatic and immediate, the Board shall follow the procedures for notice and hearing set forth in this Article with respect to the accused Owner before a decision to impose discipline is reached.

9.4 Fines. The Board of Directors is authorized to assess fines upon unanimous vote against any Owner for violation of the provisions of the Governing Documents by the Owner, the residents of his Home, his guests, invitees and contractors. The fine may not exceed (i) One Hundred dollars ($100.00) per violation or per day if the violation is ongoing, or (ii) Five Thousand Dollars ($5,000.00) per violation in any one year.

9.5 Hearing Procedures. Except as provided below, fines and suspensions may not be imposed by the Association until a hearing has been conducted as follows.

a. Hearing. Before any fine or suspension is levied the Owner shall be given written notice and an opportunity to be heard. The hearing shall be in executive session unless the Owner requests that it be conducted in open session.

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b. Notice. Notice shall be given either personally or by prepaid first class or registered mail to the most recent address of the Owner as shown in the Association's record. The notice shall set forth the nature of the perceived violation and the possible sanctions that may be imposed if a violation is determined to have been committed. Such notice shall be sent at least 10 days before the proposed date of the hearing.

c. Right to Be Heard. At the hearing the Owner so charged is entitled to be

present and shall at his or her election have the right to be heard either orally or in writing. If the Owner fails or refuses to attend the hearing the Board may decide the matter in his or her absence.

d. Decision of Board. On the date of the hearing or within 48 hours thereafter, the

Board of Directors shall confer in executive session to determine if a violation has occurred and if so what action should be taken, if any.

e. Notice of Decision. Within 15 days after the conclusion of the hearing, the

Board shall notify the Owner of its decision by mail, which notice shall specify the sanctions imposed or levied, if any, and the reasons therefor.

f. Delinquencies. The notice and hearing requirements of this Section shall not

apply to suspension of privileges provided for in this Declaration for delinquent Assessments, which shall be automatic upon the occurrence of a delinquency.

9.6 Failure to Pay Fine. If a fine is imposed following a hearing all of the Owner’s

membership rights and privileges shall remain suspended at least until such time as the fine and any interest and late charges thereon are paid in full.

9.7 Obligation to Follow Rules. Each Owner of a Lot, and those who reside in his Home or visit him or her for any reason, shall comply with the Rules.

9.8 Fines Constitute Assessment. Unless prohibited by law, any monetary fine imposed pursuant to this Declaration shall constitute a Special Assessment against the Owner and shall be enforceable by any means available under this Declaration or as prescribed in the Civil Code. The Board of Directors shall from time to time adopt and distribute to each Owner, by personal delivery or first class mail, a schedule of the monetary fines that may be assessed for these violations.

9.9 Cumulative Remedies. The respective rights and remedies provided in this Declaration shall be cumulative. The exercise of any one or more of such rights or remedies shall not preclude or affect the exercise, at the same or at different times, of any other rights or remedies.

9.10 Failure Not A Waiver. Failure by the Association to enforce the Governing Documents on any one or more occasions shall not be deemed a waiver of the Association’s

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right to enforce the same provision, or any other term, against that or any other Owner in the future.

9.11 Remedy at Law Inadequate. Any violation of the Governing Documents shall be deemed a nuisance. The remedy at law to recover damages for such a violation is wholly inadequate and injunctive relief shall be awarded to the Association to restrain continuing violations and/or compel enforcement.

9.12 Dispute Resolution. In the event a dispute of any kind or nature arises within the Development from the provisions, interpretation or enforcement of the Governing Documents, any party may request informal dispute resolution pursuant to Section 5915 of the Civil Code. Further, any dispute which arises from (i) the management or operation of the Association, (ii) decisions made or actions taken by the Association or its representatives, (iii) damages or injuries occurring within the Development, or (iv) the enforcement or interpretation of the Governing Documents, shall be submitted to binding arbitration before a retired Judge of the Superior Court, who shall hear the case without a jury and whose decision shall be final and binding. The Judge shall be selected by the parties from any list of retired judges maintained for that purpose by the Superior Court and, if the parties cannot agree, the Court shall appoint a judge to hear the trial and all pre-trial proceedings upon the petition of any party. The trial shall be commenced in all cases, if possible, within four (4) months from the date the matter has been submitted to the retired Judge.

a. Judge's Fees. Each party shall post, in advance, one half (1/2) of the Judge's fees and costs required to try the dispute.

b. Attorneys’ Fees. In any court action or arbitration of disputes within the scope

of this Section 9.12, the prevailing party shall be awarded his, her or its reasonable attorneys' fees and costs, including the fee paid by such prevailing party for the services of the retired judge.

c. Other Legal Remedies. Violation of any of the provisions of this Declaration

shall be enjoined, abated, restrained or otherwise remedied by appropriate legal or equitable proceedings as described above. Notwithstanding the foregoing, if it is necessary to obtain a temporary restraining order and/or preliminary injunction such relief may be granted by the Superior Court rather than by a retired judge; provided, however, that after the issue of the restraining order/preliminary injunction is decided, the balance of the dispute shall thereafter be submitted to the retired judge. Proceedings to restrain such violation may be brought at any time that such violation appears reasonably likely to occur in the future. Such proceedings may be brought by the Board of Directors, any aggrieved Owner, or their respective agents or representatives. Each remedy provided for in this Declaration shall be cumulative and not exclusive. Failure to exercise any remedy shall not, under any circumstances, be construed as a waiver of that remedy.

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d. Small Claims. Notwithstanding the foregoing, claims within the jurisdiction of small claims court shall be decided in that forum only. Unless the Association elects to proceed by nonjudicial foreclosure, claims by the Association to collect assessments, regardless of the amount, shall be decided in small claims court or any other court of competent jurisdiction.

ARTICLE 10 POWERS AND DUTIES OF ASSOCIATION

The powers and duties of the Association shall generally be as described in the Governing Documents, in Sections 4000, et seq. of the Civil Code, and Section 7000, et seq. of the Corporations Code, and shall include, without limitation, the following.

10.1 Management of the Development. The management, operation, and control of the Development shall be the responsibility of the Association, acting alone or through its officers, directors, and managing agents, in accordance with the provisions of the Governing Documents.

10.2 Maintenance of Common Area. The Association shall have the duty to maintain the Common Area and all components thereof. This duty shall include without limitation maintenance of the drainage courses located in the arroyo, open spaces and slopes which are owned or otherwise under the control of the Association.

10.3 Committees. The Board will establish committees as it deems appropriate from time to time. Each committee will act in an advisory capacity only. Members of a committee will be appointed and replaced by the Board at any time in its discretion.

10.4 Powers and Duties Generally. In addition to those powers expressly described in this Declaration, the Association may exercise any and all rights and powers which are necessary or proper to maintain and keep the Development in a good state of repair, to enforce any of the provisions of the Governing Documents, or to carry out and perform its powers and responsibilities under California law.

10.5 Borrow Money. The Board shall have the authority to borrow a sum which is not more than ten percent (10%) of the amount of the total budgeted Regular Assessment for the year, without the consent of a majority of a quorum of the Owners. It may repay monies as needed in connection with the discharge of the Association's duties, and to encumber property of the Association or assign special assessment rights as security for the repayment of such borrowed money.

10.6 Litigation. The Board shall have the authority to institute, defend, settle or intervene on behalf of the Association in litigation, arbitration, mediation or administrative proceedings in any capacity necessary to represent the interests of the Association.

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10.7 Limitations on Sales and Expenditures. In no event shall the Board of Directors do either of the following during any fiscal year without the consent of a majority of a quorum of the Owners: (i) sell property owned by the Association having an aggregate market value exceeding five percent (5%) of the budgeted total annual Regular Assessment, or (ii) spend an amount for capital improvements which exceeds ten percent (10%) of the Association’s budgeted total annual Regular Assessment. Nothing contained herein shall be construed so as to limit the authority of the Association to spend money contained in a reserve account to maintain or repair the Common Areas (as opposed to improving them).

10.8 Powers and Duties Specifically. In addition to the powers and duties found elsewhere in this Declaration, the Association, through its officers and directors, shall provide, perform, cause to be performed, maintain, acquire, contract and/or pay for out of Common Funds all or any of the following:

a. Utilities. Water, sewer, gas and other necessary utility services attributable to the Common Areas (including electrical attributable to the Common Areas).

b. Insurance. Policies of casualty, liability and other insurance covering such

persons, property and risks as are more particularly set forth in this Declaration in the Article regarding Insurance.

c. Management Services. The services of a Manager or management company or

both.

d. Vendor Services. The services of vendors which the Board may determine to be necessary or proper to the daily management, operation and maintenance of the Development.

(1) One Year Limit. No contract for such services shall be made and entered

into which binds the Association for a period in excess of one year, without the vote or written consent of a majority of a quorum of the Members of the Association. Any such contract shall provide that it is terminable for cause immediately, or without cause on thirty (30) days’ notice.

(2) Exceptions to One Year Limit. The following exceptions may exceed one year without a vote of the membership:

(i) Public Utility Contract. A contract with a public utility company if

the rates charged for the materials or services are regulated by the Public Utilities Commission provided, however, that the term of the contract shall not exceed the shortest term for which the supplier will contract at the regulated rate. In such an event, no Owner shall separately contract for a similar service from another vendor which would cause the Association to breach its contractual duty;

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(ii) Insurance. Prepaid casualty and/or liability insurance policies are

not to exceed three years duration provided that the policies permit for short rate cancellation by the insured;

(3) Conflicts of Interest. The Association shall not enter into a contract or

agreement with any third party in which the Manager or any other employee, or any director or officer, has a direct or indirect economic or ownership interest without full written disclosure to the Board and approval by the Board reflected in the minutes, and abstention from voting by any director receiving benefit therefrom.

e. Materials. All supplies and materials necessary or proper to the daily

management, operation and maintenance of the Development; provided, however, that no contract for such supplies and materials shall be made and entered into which binds the Association for a period in excess of one (1) year, except with the prior approval of a majority of a quorum of the Owners. Any such contract shall be terminable immediately for cause or on thirty (30) days' notice without cause.

f. Operations. The designation, provision, control and maintenance of those

portions, if any, of the Common Area used exclusively by such Persons as are employed by the Association to provide for the daily operation and maintenance of the Development.

g. Repairs; Maintenance; Reconstruction. Cleaning, painting, maintenance,

repairs, reconstruction and replacement of all or any portion of the Common Areas or the personal property of the Association.

h. Gardening and Landscaping. The services of a gardener to maintain, renew,

and replace all or any portion of the landscaping, gardens and green areas within the Common Area, together with all tools, supplies, plants and equipment reasonably necessary for such purpose.

i. Legal and Accounting. Legal and accounting services and fees for the

Association, the Board, Officers, the Manager and his staff, provided that said services and fees are incurred solely in connection with (i) the management, operation and maintenance of the Development, (ii) the performance or enforcement (including the collection of Assessments) of the provisions of the Governing Documents, (iii) protests or litigation to contest local real estate taxes levied against a majority of the Lots, or (iv) litigation in which the Association is a party.

j. Taxes and Assessments. Taxes and/or assessments assessed against the

Association or the property of the Association.

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k. Hold Title and Make Conveyances. To acquire, hold title to, lease, vote and

convey, with or without consideration, real and personal property and interests therein.

l. Foreclosures. To foreclose upon any Lot for non-payment of Assessments, to

take title to the Lot, to assume or otherwise pay off any encumbrances subject to the limitations of this Article.

m. Utility Suppliers. Permit utility suppliers to use portions of the Common Area

reasonably necessary to the operation of the Development.

n. Miscellaneous Services. Such other services for the use, enjoyment and protection of the Development and the residents thereof as the Board of Directors may determine from time to time are reasonable, proper or desirable.

10.9 Delegation to Manager. The Association or the Board may delegate any of its

duties, powers or functions to any qualified person to act as Manager; provided, however, that the Manager or Management Company shall act at the direction and under the supervision of the Board.

10.10 Right of Entry to Inspect. Representatives designated by the Association shall, with proper notification, have the right and authority to enter any Yard to perform Common Area maintenance or repairs or to review issues related but not specifically limited to Article 4 of this Declaration. No trespass or other wrongful act shall be deemed to have been committed by reason of such entry.

a. Notice. Except in the case of an emergency the right of entry shall be preceded by at least 48 hours’ prior notice, telephonic or by letter or email, to the Owner or occupant thereof. Any such notice may be personally delivered to the occupant of the Lot, may be left on or under the door of the Home or may be mailed to the Lot unless the Owner has specified in writing a different location for notice to be sent.

b. Avoid Unreasonable Interference. The right of entry shall be exercised with

care and in such a manner as to avoid any unreasonable or unnecessary interference with the possession, use and enjoyment of the Owner or occupant of such Lot.

c. Damage. Notwithstanding any other provision of this Declaration, in the

absence of gross negligence or willful misconduct the Association shall be responsible for repairing any element of a Lot or Yard damaged or destroyed in order for the Association to gain access to perform maintenance to and otherwise repair elements which it is required or permitted to maintain and repair under this Declaration.

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10.11 Limitation of Liability. In the absence of gross negligence or willful

misconduct, the Association and its officers, directors, consultants, managers, agents and committee members shall not be liable for (i) any act or omission whatsoever, (ii) failure to provide any service or perform any duty, function or responsibility designated herein to be performed by them, (iii) injury or damage to persons or property in the Development, or (iv) damage resulting from electricity, water, rain, mold, dust, or sand, or from any element which may leak or flow from outside of any Home or Lot, or from any pipes, drains, conduits, appliances or equipment or from any other place or cause.

10.12 Indemnification. The Association shall indemnify, defend and hold harmless its officers, directors, consultants and committee members, against all expenses and liabilities, including attorneys' fees, reasonably incurred by such person or persons in connection with any proceeding to which he may be a party, by reason of his being or having been a representative of the Association.

10.13 Personal Property of Association. The Association may acquire and hold tangible and intangible personal property and may dispose of the same by sale or otherwise. Upon dissolution of the Association the beneficial interest in any such property shall be deemed to be equally owned by the then Owners.

10.14 Nonprofit Character of Association. Notwithstanding anything contained in this Declaration to the contrary, neither the Association nor its Board of Directors, the Manager or the Manager's staff may do, conduct or engage in any activity, or cause the same to be done, which may jeopardize the non-profit character of the Association.

10.15 Annexation. The Association shall have the power to annex property adjacent to the Development so that the owner(s) thereof become Members of the Association. Any such annexation, and the terms and conditions thereof, shall be approved by the Board. ARTICLE 11 BUDGETS, RESERVES AND FINANCIAL STATEMENTS

11.1 Review of Accounts. The Board of Directors shall do the following not less frequently than quarterly:

a. Operating Accounts. Cause a current reconciliation of the Association's

Operating Accounts to be made and review the same.

b. Reserve Accounts. Cause a current reconciliation of the Association's Reserve Accounts to be made and review the same.

c. Arroyo Accounts. Cause a current reconciliation of the Association’s Arroyo

Accounts to be made and review the same.

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d. Actual to Budget. Review the current year's actual revenues and expenses

compared to the current year's budget for the Association's Operating, Reserve and Arroyo Accounts.

e. Bank Statements. Review the most current account statements prepared by the

financial institution where the Association has its Operating and Reserve Accounts.

f. Income and Expense Statements. Review an income and expense statement for

the Association's Operating and Reserve Accounts.

11.2 Operating Budget. The Board shall prepare and distribute annually to all Owners an estimated operating Budget for the next fiscal year. The Budget shall be distributed not less than 30 days nor more than 90 days prior to the beginning of the Association's fiscal year and shall include the following in addition to any other information required under Section 5300 of the Civil Code:

a. Revenue and Expenses. The estimated revenue and expenses on an accrual basis.

b. Reserves. A summary of the Association's Reserves based upon the most recent

review or study which shall be printed in bold type and include (i) the current estimated replacement cost, estimated remaining life, and estimated useful life of each major component, (ii) the current estimate of the amount of cash reserves necessary to repair, replace, restore, or maintain the major components; and the current amount of accumulated cash reserves actually set aside to repair, replace, restore, or maintain major components as of the end of the fiscal year for which the study is prepared.

c. Special Assessments. A statement as to whether the Board has determined or

anticipates that the levy of one or more Special Assessments will be required to repair, replace, or restore any major component or to provide adequate Reserves therefor.

d. Reserve Procedure. A general statement addressing the procedures used for the

calculation and establishment of those Reserves to defray the future repair, replacement, or additions to those major components that the Association is obligated to maintain.

e. Summary in Lieu Of. In lieu of the distribution of the Budget, the Board may

elect to distribute a summary of the Budget to all the Owners with a written notice that the Budget is available at the business office of the Association or at another suitable location within the boundaries of the Development and that copies will be provided upon request and at the expense of the Association. If any Owner requests that a copy of the Budget be mailed to the Owner, the

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Association shall provide the copy to the Owner by first-class mail at the expense of the Association and delivered within five days. The written notice that is distributed to each of the Owners shall be in at least 10-point bold type on the front page of the summary of the Budget.

11.3 Annual Review. An annual review of the financial statement of the Association

shall be prepared by a licensee of the California State Board of Accountancy. It shall be distributed within one hundred twenty (120) days after the close of each fiscal year.

11.4 Insurance Information. The Association shall disclose to the Owners in writing on an annual basis the insurance information which is described in Section 5300(b)(9) through (i) of the Civil Code, including summaries of the general liability, earthquake and flood, and director and officers liability insurance policies.

11.5 Lien Policies. A statement describing the Association's policies and practices in enforcing lien rights or other legal remedies for default in payment of its Assessments against its Owners shall be annually delivered to the Owners.

11.6 Reserve Study. A copy of the reserve funding plan required under Sections 5300(b)(3) and 5570 of the Civil Code shall be distributed annually with the Budget. Further, at least once every three (3) years, or as otherwise required by law, the Board of Directors shall cause a study of the Reserve account to be performed. When the result of the Reserve account is known, the Board shall devise within a reasonable period of time a plan to raise or maintain the Reserves in accordance with the recommendation of the study. The study required by this section shall, at a minimum, include:

a. Major Components. Identification of the major components which the Association is obligated to repair, replace, restore, or maintain which, as of the date of the study, have a remaining useful life of less than thirty (30) years.

b. Remaining Life. Identification of the probable remaining useful life of the

components as of the date of the study.

c. Cost to Repair or Replace. An estimate of the cost of repair, replacement, restoration, or maintenance of the components during and at the end of their useful life.

d. Annual Contribution. An estimate of the total annual contribution necessary to

defray the cost to repair, replace, restore, or maintain the components during and at the end of their useful life, after subtracting total Reserve funds as of the date of the study.

11.7 Budgets and Financial Statements. The Board of Directors shall arrange and

be responsible for all of the financial information described in this Article to be regularly prepared and distributed to all Owners as required by law.

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ARTICLE 12 ASSESSMENTS

12.1 Regular Assessment. Each year the Association shall levy Regular Assessments to pay for its operations as provided in Section 5605 of the Civil Code. Regular Assessments levied by the Board shall be used exclusively for the purpose of the performance by the Board of each and every one of its powers and duties described in this Declaration or required by law: In levying Regular Assessments the Board will adhere to the following regulations:

a. 20% Limitation. The Board shall not, without the approval by vote or written consent of Owners constituting a majority of a quorum of the Association, impose a Regular Assessment which is more than twenty percent (20%) greater than the budgeted total annual Regular Assessment for the immediately preceding fiscal year. For the purposes of this Section, quorum means more than fifty percent (50%) of the Owners. If, after the budget for the fiscal year is prepared and approved, it is determined in good faith by the Board that the amount of the Regular Assessments for that year is insufficient to meet the Association’s operating expenses, the Board may impose a supplemental Regular Assessment during the course of the fiscal year so long as the cumulative total of all Regular Assessments for that year does not exceed the foregoing 20% limitation.

b. Assessment Schedule. All Regular Assessments shall be divided among and

paid by the Owners in equal shares. If a Regular Assessment is not made as required for a new fiscal year, the Regular Assessment for the prior fiscal year shall apply and govern each Owner's payments until changed by a new Regular Assessment.

c. Payable Quarterly. The Regular Assessment shall be payable by each Owner on

a quarterly basis and shall be delinquent if not received by the Association within fifteen (15) days of the date due. No portion of any Assessment is refundable if a person ceases to be a Member in the middle of a year.

d. Written Notice. Any increase in Regular Assessments shall be made by written

notice to each Owner at least thirty (30) days in advance of the first payment due and shall be payable in the manner specified in said notice.

12.2 Special Assessment. The Board may levy Special Assessments against all

Owners for the purpose of raising money to meet the obligations of the Association or make improvements when such expenses are not adequately provided for in the annual Budget. No Special Assessment against all Owners may be imposed if it is for more than 5% of the budgeted gross expenses of the Association for that fiscal year unless approved by a vote of a majority of a quorum of the Owners (for this purpose the word “quorum” means more than 50% of the Owners).

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In addition, a Special Assessment may be imposed against an individual Owner for the

following purposes:

a. Owner Damage. Reimbursement for expenses incurred by the Association for damage caused to the Common Area by the Owner or the residents of his Home, his invitees, contractors or guests.

b. Noncompliance. Reimbursement of all costs and expenses incurred in bringing

an Owner into compliance with the terms of the Governing Documents.

c. Written Notice. A Special Assessment under this section shall be made by written notice to such Owner at least thirty (30) days in advance of the payment due and shall be payable in the manner specified in said notice.

12.3 Emergency Assessments. Notwithstanding any other provision of this

Declaration, the Board may impose Special Assessments or increase Regular Assessments, without regard to amount and without a vote of the Owners, in emergency situations only. For purposes of this section, an emergency situation is any one of the following:

a. Order of Court. An expense required by an order of a court of competent

jurisdiction.

b. Threat to Personal Safety. An extraordinary expense necessary to repair or maintain the Development or any part of it for which the Association is responsible where a threat to personal safety in the Development is discovered.

c. Unforeseen Expenses. An extraordinary expense necessary to repair or

maintain the Development or any part of it for which the Association is responsible and could not have been reasonably foreseen by the Board of Directors in preparing and distributing the pro-forma operating budget. However, prior to the imposition or collection of an Assessment under this subsection, the Board of Directors shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense could not have been reasonably foreseen in the budgeting process, and the resolution shall be distributed to the Owners with the notice of the Assessment imposed pursuant to this subsection.

12.4 Deposit of Assessments. All sums received or collected by the Association

shall be promptly deposited into a checking or savings account in a bank or savings and loan association selected by the Board of Directors, which account shall be clearly designated in the Association’s name as the “Common Funds” of the Association.

a. Exclusive Control. The Board shall designate at least three of its members, two of whom shall be the Treasurer and the President, to have exclusive control of

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Association bank accounts. The Board shall be responsible to the Owners for the maintenance at all times of accurate records thereof.

b. Commingling. The Association shall maintain separate accounts for its

Operating, Arroyo, and reserve funds, respectively, and no funds from those separate accounts shall be commingled at any time.

c. Interest. No Owner shall have the right to receive interest on any such funds

deposited.

12.5 Reserves. Notwithstanding the foregoing, all sums assessed and collected by the Association as part of the Regular Assessments which are budgeted to fund Reserves for anticipated long-term maintenance, repair and replacement of major components of the Common Area, the cost of which would not ordinarily be incurred on an annual basis, shall:

a. Segregated. Be received in trust by the Board, set aside and segregated from the other Common Funds and not commingled with the Association's Operating Account.

b. Invested. Be invested with prudence and in accordance with fiduciary

obligations owed to the Association.

c. Interest. No Owner shall have the right to receive interest on any such funds deposited.

d. Restricted Use. Be used for the sole purpose of paying the cost of long-term

maintenance, repair and replacement of major components of the Common Area, or litigation pertaining thereto, the cost of which would not ordinarily be incurred on an annual basis. Nothing contained in this section shall be construed to prohibit the Board from budgeting for the operating fund an amount required each year to maintain the Common Areas.

e. Two Signatures. Be disbursed from the Reserve account only upon the vote of

the Board of Directors and the subsequent signature by two officers one of whom must be the President or Treasurer.

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f. Temporary Transfers. Notwithstanding the foregoing, the Board may authorize the temporary transfer of money from a Reserve fund to the general Operating fund of the Association to meet short term cash flow requirements or other expenses; provided, however, the Board may not transfer in any fiscal year reserve funds for this purpose exceeding twenty percent (20%) of the budgeted total annual Regular Assessment without the consent of a majority of a quorum of the Owners. The transferred funds shall be restored to the Reserve fund within one (1) year of the date of such initial transfer, except that the Board may, upon making a finding supported by documentation that a temporary delay would be in the best interests of the Association, temporarily delay the restoration until the time which the Board reasonably determines to be necessary. Said transfer of funds shall be made in accordance with all requirements of Section 5515 of the Civil Code. The Board shall exercise prudent fiscal management in delaying restoration of these funds and in restoring the expending funds to the Reserve account, and shall, if necessary, levy a Capital Assessment pursuant to Section 12.2 of this Declaration to recover the full amount of the expended funds within the time limits required by this section.

g. No Reimbursement. All contributions to Reserves inure to the benefit of the

Association and not to the benefit of any Member or individual. As such, contributions to Reserves are not refundable to individual Owners when such Owners cease to be Members of the Association.

12.6 Delinquencies. Any Assessment made in accordance with this Declaration shall

be the separate debt of each Owner against whom the same is assessed. Unpaid Assessments shall be deemed delinquent thirty (30) days after they are due.

a. Late Charge. Delinquent Assessments shall be assessed a late charge of not more than ten percent (10%) or $10, whichever is greater. A late charge may not be imposed more than once on any delinquent payment and shall not eliminate or supersede any charges imposed on prior delinquent payments.

b. Interest. Delinquent Assessments and all late charges and costs of collection

shall bear interest at the rate of twelve percent (12%) per annum or the maximum rate otherwise permitted by Civil Code Section 5650(b). Interest shall commence thirty (30) days after the Assessment becomes due.

12.7 Liability for Assessments. The Owner of a Lot shall be personally liable for

any and all Assessments provided for by this Declaration together with any accompanying late charges, interest, costs, and attorneys’ fees as may be authorized under this Declaration. In a voluntary conveyance of a Lot by an Owner, the grantee shall be jointly and severally liable with the grantor for all unpaid Assessments, late charges, interest, costs and penalties up to the time of the grant or conveyance without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee therefor.

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12.8 No Offsets. All Assessments shall be payable in the amount specified by the Assessment and no offsets against such amount shall be permitted for any reason, including without limitation, (i) a claim that the Association is not properly exercising its duties and powers as provided in this Declaration; (ii) a Member has made or elects to make no use of the Common Area; (iii) any construction or maintenance for which the Association is responsible has not been performed; or (iv) any construction or maintenance for which the Association is responsible has not been performed to a Member's satisfaction.

12.9 Waiver of Use. No Owner of a Lot may exempt himself from liability for Assessments duly made and levied by the Association, nor release the Lot owned by him from the liens and charges thereof, by waiver of the use and enjoyment of the Common Area and the facilities thereon or by abandonment of his Lot.

12.10 Waiver of Homestead. With respect to liens created pursuant to this Article, each Owner waives to the fullest extent permitted by law the benefit of any homestead or exemption or redemption laws of the State of California. Each Owner shall be estopped to raise homestead or any other exemption or redemption in any action or proceeding to enforce or foreclose such liens.

ARTICLE 13 ASSESSMENT LIENS

13.1 Enforcement of Assessments. As per Section 5730 of the Civil Code, the Board has the right to collect and enforce Assessments including delinquent Assessments by: (i) suing the Owner directly on the debt, and/or (ii) establishing a lien against the Owner's Lot and foreclosing the lien through either judicial or nonjudicial proceedings. The Association may commence and maintain a lawsuit directly on the debt without waiving its right to establish a lien against the Owner's Lot for the delinquent Assessment.

13.2 Attorneys’ Fees. In any action instituted by the Association to collect delinquent Assessments, accompanying late charges, or interest, the prevailing party shall be entitled to recover costs and reasonable attorneys' fees.

13.3 Assessment Becomes Lien. A delinquent Assessment or installment, together with any late charges, interest, costs, attorneys' fees and penalties shall become a lien on the Lot upon the recordation of a “Notice of Delinquent Assessment” in the Office of the County Recorder.

a. Notice of Delinquent Assessment. The Notice of Delinquent Assessment shall describe the amount of the delinquent Assessment, the related charges authorized by this Declaration, a description of the Lot, the name of the Owner, and, if the lien is to be enforced by power of sale under nonjudicial foreclosure proceedings, the name and address of the trustee authorized by the Association to enforce the lien by sale. The notice shall be signed by any officer of the

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Association, or any employee or agent of the Association authorized to do so by the Board.

b. Monetary Penalties. Unless prohibited by law, monetary penalties imposed by

the Association as a disciplinary measure (i) for failure of the Owner to comply with the Governing Documents, or (ii) in bringing the Owner and/or his Lot into compliance with the Governing Documents shall be deemed a Special Assessment which may become a lien against the Owner's Lot.

13.4 Foreclosure. The Board may enforce any Assessment lien against a Lot by (i)

filing an action for judicial foreclosure, or (ii) if it complies with Section 5705 of the Civil Code, by nonjudicial foreclosure in accordance with applicable provisions of the Civil Code found in Section 2924, et seq. The Association may bid on the Lot at the sale, and may hold, lease, mortgage, and convey the acquired Lot.

13.5 Additional Remedies. The remedies and liens provided in this Article and enforcement thereof as herein provided shall be in addition to and not in substitution for any other rights and remedies which the Association may have hereunder or by law.

13.6 Waiver of Objection. Each Owner hereby vests in and delegates to the Board or its duly authorized representative the right and power to bring all actions at law or lien foreclosures, whether judicially or by power of sale, or otherwise, against any Owner or Owners for the collection of delinquent Assessments in accordance herewith, and hereby expressly waives any objection to the enforcement in accordance with this Declaration of the obligation to pay Assessments as set forth in this Declaration.

13.7 Payment by New Owner of Past Due Assessments. Notwithstanding anything contained in this Declaration to the contrary, any new Owner (except the Association after it has foreclosed on an Assessment lien) of a Lot shall be personally responsible for paying all past-due Assessments imposed against the Lot while it was owned by a former Owner of that Lot. If, upon taking title to the Lot, the new Owner does not pay the past-due Assessments in full within ten (10) days from the date written notice is received, then any discipline, sanctions or other remedies provided in this Declaration or under California law may be imposed against the new Owner. Nothing contained in this Section shall be deemed or construed to release the new Owner from the obligation to pay future Assessments or release the former Owner from the continuing duty to pay the Assessments which accrued until such time as he no longer owned the Lot. Furthermore, nothing contained in this Section shall be deemed or construed to prevent the new Owner, who is compelled to pay the past-due Assessments described herein, from pursuing any available remedy under law against the former Owner for reimbursement.

13.8 Subordination to Trust Deeds. The liens created hereunder upon any Lot shall be subject to and shall not affect the rights of the holder of an indebtedness made in good faith, for value and secured by a recorded trust deed upon such Lot in favor of or for the benefit of an institutional lender (i.e., a bank, insurance company, or savings and loan or building and loan association), Grantor or any entity in which Grantor owns an interest. However, after the foreclosure of any such deed, there may be a lien created pursuant to Section 6.05 on the interest

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of the purchaser at such foreclosure sale to secure all assessments hereunder assessed to such purchaser as an Owner after the date of such foreclosure sale, which said lien shall have the same effect and be enforced in the same manner as provided herein.

ARTICLE 14 ADMINISTRATION

14.1 Annual Meetings. The Association shall have at least one meeting of its Members each year for the purpose of electing, in accordance with the Bylaws, a Board of Directors.

14.2 Board Meetings. Meetings of the Board of Directors shall generally be conducted once per month but in any event not less than once every other month.

14.3 Conduct of Meetings. The conduct of Owners’ meetings and Board meetings shall be as provided in the Bylaws. ARTICLE 15 INSURANCE

15.1 Authority to Purchase. All insurance provided for in this Article, or otherwise deemed prudent by the Board, shall be purchased, and maintained by the Association and the premiums shall be part of the Common Expenses to be paid out of Common Funds.

15.2 Casualty. The Association shall purchase and maintain a master policy naming

as insureds the Association and its officers, directors, agents and employees. The policy shall cover:

a. Fire. Loss or damage to the Common Area by fire, and other anticipated risks if reasonably available, excluding earthquake and flood;

b. Special Endorsements. Replacement cost endorsements and such other or

special endorsements as will afford protection and insure, for the current replacement cost of the Common Area;

c. Theft, Vandalism. Loss or damage to the Association or the Common Areas as

a result of theft, vandalism, or malicious mischief; and d. Other. Such other risks, perils or coverage as the Association may determine.

15.3 Additional Provisions. The master policy and the endorsements made a part thereof may provide for such deductibles from any amounts otherwise payable thereunder as the Association may determine, and should, if economically practical and available at reasonable premiums, bring the improvements up to current code requirements, and also:

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a. Decision to Repair. Provide that the insurer issuing said policy agrees to abide by the decision of the Association whether to repair; reconstruct or restore all or any damaged or destroyed portion of the Common Area.

b. No Escape Clause. Contain no “escape” or “other insurance” clause that would

cause said policy to become void in whole or in part or cause any proceeds payable thereunder to be reduced, set off, apportioned, prorated or otherwise brought into contribution with or by reason of separate insurance obtained by or for any Owner or his Mortgagee.

c. Waiver of Subrogation. Contain a waiver by said insurer of any and all rights of

subrogation against any Owner (and each member of its staff or employees), the Association, its Board (and each member thereof), its officers (and each of them), the Manager, and each member of his staff or employee of the Association.

d. No Cancellation. Provide that the master policy cannot be canceled,

invalidated, suspended, substantially modified, terminated, avoided or expire in whole or in part by reason of any act, omission or breach of any Covenant contained in this Declaration by the Association, its Board, officers, Manager, his staff or any one or more Owners without a prior written demand that the Association cure such breach, and that in no event shall said policy be canceled, invalidated, suspended, substantially modified, terminated, avoided or expire for any reason without thirty (30) days' prior written notice from the insurer to the Association, and to any Owner or Mortgagee who shall have filed a written request with said insurer for such notice.

e. No Prejudicial Effect. Provide that the insurance obtained pursuant to this

Article shall not be prejudiced by any act or neglect of any of the insureds’ officers and directors when such act or neglect is not within the knowledge and control of the insureds collectively or by any act or omission of individual Owners that are not under the control of the Association.

f. Failure to Comply. Provide that the insurance obtained pursuant to this Article

shall not be prejudiced by failure of the insureds collectively to comply with any warranty or condition with regard to any portion of the premises over which the insureds collectively have no control.

g. Association as Trustee. Provide that all insurance proceeds under the master

policy shall be payable to the Association as trustee to be held and expended as provided in this Declaration for the benefit of the Owners and their respective Mortgagees as their interests may appear.

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15.4 Public Liability and Property Damage. The Association shall purchase and maintain one or more comprehensive public liability and property damage policies naming as insureds the Association, its officers and directors (and each of them), and the Association as trustee for all of the Owners and their Mortgagees as their interests may appear. The policy or the endorsements made a part thereof shall provide immediate protection with minimum liability limits of not less than (i) Five Million Dollars ($5,000,000.00) for injury or death to one or more persons in any one accident or occurrence, and (ii) Three Million Dollars ($3,000,000.00) for property damage, and shall also:

a. Bodily Injury, Death, Property Damage. Insure against bodily injury, death, or property damage occurring in, on or about any portion of the Development;

b. Cross-Liability. Contain a cross-liability endorsement so as not to prejudice the

rights of a named insured against another named insured; and

c. Waivers. Provide for the same waivers of the insurers' rights of subrogation, “other insurance” provisions, loss adjustment clause, cancellation clause, “no control” clause and insurance proceeds payment clause as contained in this Article.

15.5 Directors and Officers. The Association shall purchase with Common Funds

appropriate directors and officers errors and omission insurance in an amount which is not less than $3,000,000.

15.6 Choice of Contractor. With respect to any repairs for which proceeds of insurance are paid or are payable to the Association, unless the insurer requires otherwise, the Board of Directors alone shall designate the contractor to perform said repairs unless the funds are to be used to repair a Lot in which case the Owner of that Lot shall select the contractor.

15.7 Choice of Insurance Company. All policies of insurance obtained by the Association or its Board of Directors as provided in this Article shall be obtained from an insurance company qualified to do and doing business in the State of California and holding a rating of “A” (or such other comparable rating if Best uses a different standard in rating insurance companies) or better in Best's Insurance Reports and may be obtained from one or more companies.

15.8 Collecting Insurance Proceeds. All costs and expenses incurred by the Association to collect or recover the proceeds of any insurance policy purchased by the Association as provided in this Article (including but not limited to any and all fees of attorneys, appraisers and adjusters) shall be part of the Common Expenses.

15.9 Act Increasing Insurance Premiums. In the event any act or omission of any

Owner, any member of his family, or any of his guests, servants, employees, licensees, tenants, agents or invitees, shall increase the premiums for any insurance policy purchased or obtained by the Association for the benefit of the Development and the residents thereof, the amount of said increase shall be assessed and charged solely to and against such Owner and his Lot as an

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Assessment in accordance with the notice and hearing provisions of this Declaration. Said Assessment shall be made by written notification from the Board of Directors to the Owner and shall be payable in full to the Association at least ten (10) days in advance of the date or dates for the payment of such increased insurance premiums, or within ten (10) days following such notice, whichever is later. In the event that any Owner fails to pay any amount assessed pursuant to this Section, then the Board of Directors shall have the right to pursue its available legal rights and remedies on behalf of the Association, in order to satisfy said obligation in which event the Owner shall be liable for all costs and attorneys' fees in connection with collection of the Assessment.

15.10 Fidelity Insurance. The Association shall maintain fidelity coverage against dishonest acts on the part of officers, directors, employees, volunteers, and managing agents who handle or are responsible for handling the funds of the Association. Such fidelity coverage shall name the Association as obligee and shall be written in an amount equal to or greater than 150% of the budgeted Regular Assessments of the Association for the year plus the amount of all reserves expected to be in the Board’s control that year. The coverage shall contain waivers of any defense based on the exclusion of persons who serve without compensation from any definition of “employee” or similar expression.

15.11 Owner Insurance. Each Owner, and not the Association, shall have the continuing duty to insure his Lot and Home and all structures, contents, improvements, furnishings, and decorations thereon.

15.12 Waiver by Members. All insurance obtained by the Association shall be maintained by the Association for the benefit of the Association and the Owners. As to each of said policies which will not be voided or impaired thereby, the Owners hereby waive and release all claims against the Association, the Board, Association employees, and other Owners with respect to any loss covered by such insurance. ARTICLE 16 AMENDMENTS

16.1 Amendment. This Declaration may be amended only by the vote or written consent of Owners comprising a majority of the total voting power of the Association. Any amendment enacted in compliance with this Article shall be recorded in the office of the Ventura County Recorder.

16.2 Confirmation of Approval. A certificate signed and sworn to by two (2) officers of the Association that the requisite number of Owners have either voted or consented in writing to any amendment, when recorded, shall be conclusive evidence of such fact. The Association shall maintain in its files a record of all such votes or written consents for a period of at least four years. ARTICLE 17 NATURAL DRAINAGE COURSES

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17.1 Purpose. A portion of the drainage system for the property within Westlake

North consists of natural water runoff into a series of interconnected natural channels known generally as the Arroyo Conejo (hereinafter called “Arroyo”). Said Arroyo is situated within and without the real property encumbered by this Declaration. In order to equitably distribute the responsibility for the maintenance of the Arroyo among all landowners benefitting therefrom, this Article shall provide for limited inclusion of other real property without such other real property otherwise being subject to the use and other restrictions contained in the other Articles of this Declaration.

17.2 Inclusion of Real Property Served by the Arroyo.

a. Method of Inclusion. Exhibit B includes a list of other associations that participate in the maintenance of the Arroyo. These associations participate in maintenance of the Arroyo because they convey additional runoff water into the Arroyo drainage system.

b. Obligations of Included Associations. Upon inclusion, associations shall be

subject to only those provisions of this Declaration relating to assessment and collection of Arroyo maintenance assessments, including without limitation Sections 12.1, 12.2, 12.6 and Article 13 of this Declaration.

17.3 Maintenance of the Arroyo. The Association shall keep the Arroyo in good

repair and in conformance with maintenance standards established by the City of Thousand Oaks or other appropriate governmental agency. In the absence of specific standards, maintenance shall be performed as required in order to assure that the Arroyo convey surface water runoff without flooding of adjacent lands and that the slopes are not permitted to erode.

17.4 Arroyo Assessments.

a. Operating Fund. At least thirty (30) but no more than ninety (90) days prior to the commencement of each fiscal year, the Board shall estimate the cost and expenses to be incurred by the Association during such fiscal year in maintaining the Arroyo (including a reasonable provision for contingencies), and shall subtract from such estimate an amount equal to the anticipated balance in a separate Arroyo Operating Fund at the start of such fiscal year which is attributable to Arroyo operation and maintenance assessments for the prior fiscal year. The sum or net estimates so determined shall be assessed pro rata to the associations subject to the Arroyo Assessment fund as an operation and maintenance assessment in the percentages listed in Exhibit B.

b. Additional Assessments. In the event that the Assessments collected for Arroyo

maintenance in any fiscal year prove to be inadequate to accomplish such maintenance, the Board may levy such Special Assessments as are necessary to meet the costs incurred in performing such maintenance, including provision for

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contingencies and capital Improvements, subject to the limitations imposed pursuant to Article 12.2 herein or by law, which is more restrictive.

ARTICLE 18 MISCELLANEOUS

18.1 Headings. The headings of the several Articles, Sections and paragraphs of this Declaration are inserted solely for the convenience of reference and are not a part of and are not intended to govern, limit or aid in the construction of any term or provision of this Declaration.

18.2 Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for the use, operation and maintenance of the Development.

18.3 Number and Gender. Whenever the context so requires, the singular number includes the plural, the plural includes the singular, the masculine gender includes the feminine and/or neuter and the neuter gender includes the masculine and/or feminine.

18.4 Severability. In case any term, covenant, provision, phrase, section or other element contained in this Declaration or in any other public document for any reason shall be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect, alter, modify or impair in any manner whatsoever any other application thereof or any other term, covenant, provision, phrase, Section or other element contained in the Governing Documents, the provision of which shall be carried out as if such invalid, illegal or unenforceable provision were not contained herein or therein.

18.5 Conflicting Provisions. In the case of any conflict between this Declaration and the Articles, the Articles shall control. In the case of any conflict between this Declaration and the Bylaws, this Declaration shall control. In the event of any conflict between the Rules and Regulations and the Bylaws, the Bylaws shall control.

18.6 No Public Rights in the Development. Nothing contained in this Declaration shall be deemed to be a gift or dedication of all or any portion of the Development to the general public or for any public use or purpose whatsoever.

18.7 Successors and Assigns. This Declaration shall inure to the benefit of and be

binding upon the Owners, and their respective heirs, personal representatives, grantees, tenants, licensees, successors and assigns.

18.8 Term of Declaration. Subject to the other provisions hereof, the Covenants contained in this Declaration shall run with and benefit the land within the Development and shall be binding upon the Owners, the Association, its Board of Directors, its officers, its Manager and his staff and their successors or assigns and shall continue in full force and effect for a term of fifty (50) years from the date of recordation of this Declaration, after which time the same shall be automatically extended for successive periods of ten (10) years each unless, within

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six (6) months prior to the expiration of the initial fifty (50) year term or any ten (10) year extension period, a written agreement executed and acknowledged by the Owners of at least seventy-five percent (75%) of the Lots in the Development shall be placed on record in the Office of the County Recorder terminating the effectiveness of this Declaration.

18.9 Attorneys’ Fees. In the event a court action or arbitration proceedings are

brought arising from or related to the Governing Documents, the prevailing party shall be entitled to reasonable attorneys’ fees and costs in addition to any other relief awarded.

18.10 Notices. Any communication or notice of any kind permitted or required herein may be delivered as provided in this Declaration and shall be in writing and may be served, as an alternative to personal service, by mailing same as follows: To an Owner:

To street address of his Lot or at such other address as said Owner may from time to time designate in writing to the Association.

To the Association

To the Association at North Ranch Community Center, 1400 North Westlake Boulevard, Westlake Village, California 91362

All notices or demands to be served by mail shall be by first class regular mail with postage thereon fully prepaid. Service shall be deemed to be completed three (3) business days after such mailing.

IN WITNESS WHEREOF, this Declaration has been executed on the day and year first written above.

WESTLAKE NORTH PROPERTY OWNERS’ ASSOCIATION

President: osb Cathy Schutz

Secretary: osb Barry E Lundvall

All lots and tracts lie in the City of Thousand Oaks, Ventura County, State of California

January 2015

Exhibit A

LAND CLASSIFICATIONS

SINGLE FAMILY AREAS

Tract 2343

Lots 1 through 53, 57 through 120, 123 through 126,128 through 146, 153 through 230, and 233 through 309 inclusive.

Tract 2778

Lots 1 and 2, 4 through 31, 33 through 60, 62 through 69 inclusive.

Tract 2890

Lots 1 through 5 inclusive.

Tract 4023

Lots 1 through 11 inclusive and lot 16

Tract 3917

Lots 1 through 35 inclusive

Tract 4022

Lots 1 through 6 inclusive.

Tract 4297

Lots 1 through 31 inclusive.

Tract 4625

Lots 1 through 8 inclusive.

Tract “LD”

Lots 1 through 4 inclusive.

COMMON AREAS

Tract 2343

Lots 55, 56, 121, 127, 147 through 150, 310

Tract 2778, Lot 3

Tract 3917

Lots 36 and 37

Tract 4023, Lot 15

Tract 4297, Lot 33

Exhibit B

Cost Sharing of Arroyo Maintenance

(Other than WNPOA)

Association Percent participation

Ben Johnson Fairway Homes POA 1.7

Club View Properties HOA 1.0

Fairgreen Townhomes HOA 0.8

Fairway Oaks POA 2.3

Oak Place POA 0.8

North Ranch Country Club 4.0

High Country HOA 5.5

K and S Homes 2.0

Sub-Total 18.1

Note: WNPOA share is 81.9 percent for a Total of 100 percent

Revised: August 2011