BEACHWALK HOMEOWNERS ASSOCIATION RULES AND REGULATIONS Table of Contents SECTION A - MEETINGS Board Meetings………………………………………………………………3 Committee Meetings…………………………………………………………3 SECTION B - ENFORCEMENT OF RULES, REGULATIONS AND CC & R'S 3 Notice of Violation…………………………………………………………..4 Schedule of Penalty Assessments……………………………………………5 Tenant Violations…………………………………………………………… 6 Guest Violations……………………………………………………………..6 Reporting Violations…………………………………………………………6 Use of Recreational Areas………………………………………………….. 6 Beachwalk Citations …………………………………………………….......7 Courtesy Notification Letter …………………………………….….7 First Warning Notice ………………………………………………7 Notice of Violation Hearing ………………………………………..7 SECTION C - RULES AND REGULATIONS ……………………………………..7 Architectural Controls ……………………………………………………….7 Rubbish and Debris ………………………………………………………….8 Clothes Drying ……………………………………………………………... 9 Use of Association Common Areas and Buildings ………………………....9 Signs………………………………………………………………………… 9 Pets …………………………………………………………………………..11 Personal Property ……………………………………………………………11 Recreational Areas …………………………………………………………..12 Volleyball Court Rules ………………………………………………………12 Pool Rules …………………………………………………………………...12 Pool Table Use Rules ………………………………………………………..14 Satellite Devices ……………………………………………………………..15 Traffic Regulations ………………………………………………………….15 Permitted Vehicles …………………………………………………………..15 Prohibited Vehicles ………………………………………………………….16 Restricted Vehicles ………………………………………………………….16 Trailers, Boats and Non-Permitted Vehicles ………………………………..17 Repairing of Vehicles ……………………………………………………….17 Guest Vehicles ………………………………………………………………17 Use of Garages ………………………………………………………………17 SECTION D – KEYS, FOBS, CARD KEYS, AND OPENERS …………………….18 SECTION E – SELLING A HOME UNIT …………………………………………..18 SECTION F – PROPERTY INSURANCE…………………………………………...19 SECTION G – CLUBHOUSE RESERVATIONS……..……………………………..20 Conditions of Use ……………………………………………………………21 Reservation Process ………………………………………………………….23 Use and Release Agreement …………………………………………………24 SECTION H – MEDIA POLICY……………………………………………………..25

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BEACHWALK HOMEOWNERS ASSOCIATION RULES AND REGULATIONS Purpose and Introduction Beachwalk is a planned community of many families living closely together in 453 dwelling units on about 65 acres of land. Your decision to live in Beachwalk, with its many advantages, signified a willingness to forego the relatively complete freedom of action possible in a single-family dwelling. The willingness to live in a planned unit development such as Beachwalk, implies an obligation for all of us to respect our neighbors rights and to modify our habits and actions so as not to bother or irritate our neighbors – in other words to be Cooperative, Courteous, and Considerate; “The 3 C’s”. Acceptance of these obligations by all residents of Beachwalk will lead to something we all desire – a pleasant and harmonious community! To insure a uniform interpretation of “The 3 C’s”, certain standards of behavior and responsibilities are published in these Beachwalk Rules and Regulations (R&R’s). Included are “do’s and don’ts” for selling and renting, personal conduct and noise, animals, vehicles and parking, common area usage, RV storage, trash collection, and more. In short, the R&R’s are essential for protection of our common interest and our individual property values. The rules and regulations set forth herein are reasonable and necessary for the safety and enjoyment of all owners, residents and guests. R&R’s are part and parcel of the Covenants, Conditions and Restrictions (CC&R’s) of the Beachwalk Homeowners Association and as provided in California Civil Code Section 1357.100 through 1357.130. They are enforceable through our Board of Directors and empowered through the legal documents of the Association. Please help your Board, and your neighbors, by observing these simple, common sense “3 C” Rules and Regulations. Thank you in advance for your cooperation. Your Board of Directors

Adopted 10/18/10 – reformatted and updated Revised 4/6/12 – added page number for signs to table of contents Revised 6/11/12 – clubhouse reservation revision Revised 11/12/12 – media policy adopted

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Rules and Regulations Beachwalk Homeowners Association SECTION A MEETINGS BOARD MEETINGS The Board of Directors of the Homeowners Association meets the second Monday of each month in Clubhouse #2 at 7:00 p.m. Please check the Breeze calendar for exact dates. All homeowners are encouraged to attend the meeting. COMMITTEE MEETINGS Committees are the forum in which you can participate in the affairs of the community, make your needs known, register complaints and suggestions, and above all, be part of the decision making process. The following committees are active in the community and need your help and support in order to be effective. Architectural Landscape Nominating Pools and Recreation Finance

SECTION B ENFORCEMENT OF RULES, REGULATIONS AND CC&R’S The Board of Directors is empowered by the legal documents of the Association to enforce the Association’s Rules, Regulations, and CC&R’S. The need for enforcement arises when owners and residents or their guests fail to comply with rules, regulations and CC&R’s, in such matters as: A. Payment of dues and assessments. B. Damaging community property. C. Infraction of rules of conduct affecting the safety, security and right to quiet enjoyment by others in their use of community property. D. Construction of improvements and alternations affecting the architectural integrity of the community, without first submitting plans and obtaining Board approval.

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The guards are hired by the Association to enforce the Rules and Regulations. Your respect and cooperation are expected. Complaints or concerns regarding the guard’s discharge of their duties should be directed in writing to the Management company. Additional information can be found in the Breeze and online. The Board will enforce the payment of delinquent dues, special assessments and penalty assessments. A late charge will be applied for payments received after the 15th of each month. The use of any Beachwalk facility is denied to any homeowner or homeowners tenant when their monthly assessment is past due. The Board can levy special assessments or penalty assessments against an owner for recovery of costs incurred by the Association as a result of damage caused to community property by a resident or guests. The Board can levy penalty assessment for violations of rules of conduct or may obtain court injunctions to restrain continuing violators or violations. The Board can deal with architectural violations by means of legal injunctions and by abatement proceedings. Legal actions on behalf of the Association are very expensive but necessary to protect the best interest of all homeowners. Individuals, who act contrary to the controls that we have all agreed to abide by, create a financial burden on each and every homeowner. Please do your part to see that the rules are followed or take action to see the rules are changed. If legal action is necessary against any homeowner, resident or guest, the Board of Directors may seek, in additional to any other remedies, payment by the homeowner of the board’s attorney fees and costs as permitted by the legal documents. NOTICE OF VIOLATION A Notice of Violation may be issued for each observed violation of the Rules and Regulations listed in this manual. The restrictions of the CC&R’s also apply. Be sure you read and understand them. A Notice of Violation may be issued by: A. A member of the Board of Directors. B. A Security Guard. C. The Management Company. Failure to correct the reason for the Notice of Violation within the prescribed time will result in further action by the Board. Any witnesses the Board of Directors wishes to present regarding the violation and the person(s) issuing the Notice of Violation may be Page 4 of 25 Rules and Regulations – revised 11/12/12

required to attend the meeting. The alleged violator may bring his or her own witnesses to the hearing whose testimony will be relevant to the violation at issue. If the alleged violator wishes to bring (2) or more witnesses, he or she must give a minimum of 24 hours notice in writing to the Management company. The person cited will be given the opportunity to contest the matter at a scheduled meeting of the board. Any witnesses to the violation and person(s) issuing the Notice of Violation will be required to attend the meeting. Based on the facts and evidence presented, the Board may at its discretion: A. Levy a penalty assessment in accordance with the schedule below. Penalty assessment will be payable within (30) days of the date of such Notice and will be billed as part of the monthly Association dues. B. Rescind privileges to pools and common facilities, including voting privileges. C. Initiate legal action. D. Other action appropriate to the violation, depending upon the nature of the violation. E. Grant an extension of the time allowed to correct the violation, in which case the Board will also determine the action to be taken in the event it is not so corrected. F. Dismiss the action for lack of substantive evidence. G. Any further action permitted by the legal document. The owner and/or occupant will be given written notice of the Board’s action. Should the person being cited desire, the Board may grant an appeal. The appeal must be presented to the Board of Directors in writing within (15) days of the written decision by the Board of Directors and there must be a reason stated for the appeal (for example, new evidence). The Board of Directors, at its discretion, may grant the appeal and re-open the hearing to consider the appellate issues raised by the owner. SCHEDULE OF PENALTY ASSESSMENTS First offense Second offense (same violation) Third offense (same violation) Fourth offense (same violation) Thereafter (same violation)

$100.00 $250.00 $500.00 $1,000.00 $1,000.00

The Board reserves the right to assess penalties for violations in excess of the schedule shown above if it deems the offense serious enough to create a hazard to life, limb or Page 5 of 25 Rules and Regulations – revised 11/12/12

property of the homeowner(s) or the Association, or for violation of the architectural Rules and Regulations. In addition, the Board reserves the right to impose the loss of key privileges to all common areas, including suspension of voting privileges for a specific period of time to be determined by the Board. TENANT VIOLATIONS Tenants and immediate family members of the resident are bound by the Rules, Regulations and the CC&R’s and are subject to the enforcement of it by the Board of Directors. The homeowner will be liable for payment of special assessments resulting from damage caused to community property or violations committed by tenants and/or their guests. GUEST VIOLATIONS Homeowners or their tenants will be held totally responsible for the actions of their guests while on community property. A Notice of Violation may be issued to a homeowner or tenant if a guest commits a violation. It is the responsibility of homeowner or tenants to advise guests of a rule or regulation that may apply (parking, speeding, pet control, pool rules, or any other rules that may affect the rights of residents). REPORTING VIOLATIONS Any resident may report a violation by contacting the Management Company and submitting said violation report in writing. NOTE: Loud parties, loud cars, loud stereos, barking dogs, or any general nuisance calls should be first directed to the POLICE, then to the Association Security Guard, and a report of the violation submitted in writing. Any controversies between residents that are not a result of a violation of the Beachwalk Rules and Regulations are a CIVIL or CRIMINAL matter and should be handled by an attorney and/or the POLICE. USE OF RECREATIONAL AREAS All recreational facilities in Beachwalk are for the use of residents and guests only. The Board of Directors has instructed the security guards to verify resident status by checking that the current users have a pool key/FOB with them. The security guards will instruct those persons without keys/FOB to leave. When this occurs the guards are doing the job they were hired to do. If you are going to use one of the recreational facilities, take a key/FOB with you, otherwise you will be directed to leave. If you refuse to leave, a citation may be issued or the police may be contacted.

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BEACHWALK CITATIONS COURTESY NOTIFICATION LETTER: You have violated one of Beachwalk’s rules as indicated in the Homeowners Rules and Regulations. FIRST WARNING NOTICE: No formal action will be taken at this time; however a record of this offense will be on file. Further incidents may result in a fine or action by the Board of Directors. NOTICE OF VIOLATION HEARING: Formal action on this notice will be discussed at the next Board Meeting. You may be requested to appear for a hearing at a later date.

SECTION C RULES AND REGULATIONS

ARCHITECTURAL CONTROLS The Beachwalk Homeowner’s Architectural Guidelines were developed by the Architectural Committee and approved by the Board of Director’s in November 1997. The Guidelines are not intended to supersede or modify the CC&R’s and are subject to modification, addition or deletion as the need may arise. The Guidelines are available for review in Clubhouse 1 and on the Association website www.beachwalkhoa.org. The Architectural Guidelines contain criteria for the following:             

Block Walls and Caps Door Replacement Exterior Alterations Including Room Additions Flags, Banners Fence Relocation Garage Doors Patio Covers Rain Gutters Rear Gates Satellite Dishes Signs Solar Tubes and Sky Lights Window Replacement

A. Association common area, as defined by the CC&R’s, is the portion of the Planned Residential Development (PRD) owned by the Association. In general, this contains those areas of land outside the fences and buildings enclosing individual home units and includes driveways, sidewalks and access paths. No grading or excavation shall be made upon, nor shall any buildings, fences, walls, walks, or other or temporary structures or improvements be erected, constructed, altered or maintained upon any part of the Page 7 of 25 Rules and Regulations – revised 11/12/12

Association common areas except as authorized by the Board of Directions on the recommendation of the Architectural Committee. Those areas of land outside fences and building structure but within the individual unit’s recorded lot line (thus part of that unit’s property) will be treated as common area relative to control and maintenance. B. No grading or excavation shall be made upon, nor shall any buildings or other permanent or temporary structures be erected or maintained upon the separate property of each home unit, nor shall any authorized fence, wall structure or the exterior of individual home units be altered in any manner until complete plans and specifications have been submitted to the Architectural Committee for consideration and have been approved by the Board of Directors. Homeowners are advised of the necessity of keeping a record of the Board approval letter and permits, if required and accompanying drawings for evidence of legality on resale of their separate property. C. Violations of the Architectural Guidelines may lead to a penalty assessment, legal action, and removal of violating architectural change or any combination thereof. D. Approvals given by the Board of Directors do not negate the necessity of complying with the Huntington Beach City Buildings Codes, which require the issuing of a building permit and inspection of the work. Conversely, Huntington Beach City Building Department approval does not imply Beachwalk Board of Directors approval. Homeowners are advised of the necessity to obtain building permits for the electrical, plumbing and other alteration that they intend to undertake on the interior of their units. Failure to obtain permits or comply with City codes could result in difficulties at a later date or when the home is offered for sale. E. Proposed changes to plans and specifications previously approved by the Board shall be resubmitted for additional approval. F. House address numbers are provided by the Association and are placed above the garage at the front of the unit. Owners may install a second set of numbers. The numbers must not exceed five (5) inches and cannot be attached to any other location. G. Flags. Beachwalk residents’ display of the American Flag shall be consistent with Civil Code 1353.5. This rule only applies to the display of the American Flag and no other flags. RUBBISH AND DEBRIS A. Trash containers are provided by Rainbow Disposal and are assigned to each address. B. Containers may be placed in the driveways adjacent to your unit after 4:00 p.m. the evening prior to pick-up days and must be removed by the end of the day of pick-up. They are to be kept inside the dwelling unit at all other times.

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C. Extra rubbish collection (large objects) is available by calling Rainbow the day prior to the regular collection day. D. The dumping of any type of debris over or behind a fence into the common area is prohibited. This includes weeds, plant trimmings, animal feces, etc. E. It is unlawful to dispose of toxic materials in the street gutters and/or drains. Toxic waste must be taken to the Rainbow Disposal Yard. CLOTHES DRYING A. No clothes, sheets, rugs, blankets, or other articles shall be hung out to dry or for any other purpose be placed on any part of the Association common areas outside the confines of the individual dwelling units, or upon fences. B. No clothes, etc. are to be hung on the individual dwelling unit for both safety and aesthetic reasons. C. No exterior clotheslines are permitted.

USE OF ASSOCIATION COMMON AREAS AND BUILDINGS A. Common areas including pools, volleyball court, buildings and open space cannot be used for private business purposes. B. Damage caused to any part of Association common areas, buildings or recreation facilities by residents; their guests or their pets shall also be the responsibility of the owner. C. Signs 1. No signs of any nature, except as provided in Section 712 of the California Civil Code, shall be displayed to the public view on or from any unit without prior written approval of the Board of Directors as to size, shape, color and content. (CC&R’s, paragraph (j).) 2. One (1) standard 18x24 inch sign on a metal stake at the residence may be placed in front of the home. (Example: “For Sale”, “For Lease”, or “For Rent”). When holding an Open House, the maximum number of realtor signs allowed within Beachwalk is six (6), with no more than two (2) of those six (6) in front of the home involved. 3. All signs must conform to the maximum size outlined above on a metal stake. No balloons, shall be used either on separate stakes or attached to the signs. Flags, pennants, banners, riders are acceptable to be attached to the signs, so long as the overall dimension of the sign and the attachments described above, combined, do not exceed the aggregate measurement of 18x24 inches. Page 9 of 25 Rules and Regulations – revised 11/12/12

4. Under no circumstances will signs be nailed or attached to any residence walls, fences, gates, trees, light posts, or other common area structures without written approval from the Board of Directors. Rent and Lease signs are not allowed in Beachwalk except one sign in front of the residence involved. 5. A sign related to the sale of the house must be removed within 90 Days from when it is first placed at the residence or within 10 days after close of escrow, whichever occurs first. In case of a rent or lease of a home, the sign must be removed within 90 calendar days from when it is first placed at the residence or within 10 days after the lessor and leasee have an oral or written agreement of any kind regarding lease/rent of the premises. 6. In the event that 90 days have passed since the sign was first placed and the house is not sold, rented or leased, the homeowner or his/her realtor may apply to the Board of Directors for additional time to keep the sign at the home. The Board of directors will advise the applicant of its decision in writing. 7. All personal use signs shall be used only on the day of the event and shall not be left overnight. Each sign shall be attached to a wooden or metal stake and must stand independently. No sign shall be attached to any fences, gates, trees, walls, light posts, buildings, windows, etc. Personal use signs include garage sales; directional signs to planned personal events at a residence, including but not limited to birthdays and/or anniversaries. If the event exceeds 3 calendar days, written approval from the Board of Directors must be obtained by the homeowner or the homeowner’s tenant regarding the continued use of the sign. 8. The sign rules apply to all Beachwalk property. No signs shall be posted in the planters at the Golden West and/or 17th Street entrances. Put Open House signs up no earlier that 10:00am and remove the sign by 6:00pm. D. All residents and their guests shall be entitled to the right of quiet enjoyment of their use of Association common areas, buildings and recreational facilities. Any action, which infringes on this right shall be considered a violation of these Rules and Regulations and may be subject to citation, violation, penalty assessment or police action. E. Homeowners who are delinquent in their assessment, their tenants, and or guests shall be denied the use of the clubhouses, recreational and common area facilities and may lose voting privileges until such time as all delinquencies are paid in full and are current. F. All residents, tenants, and guests are prohibited from climbing, trimming, or tampering with any trees, plants or shrubbery in the common areas. G. The common greenbelt area between the clubhouse and the adjacent homes is restricted in the following manner. Group activities, including but not limited to football, soccer, volleyball are not permitted within fifty (50) feet of any residence. Such activities Page 10 of 25 Rules and Regulations – revised 11/12/12

are permitted in the common areas beyond that point up to the clubhouse. All persons using that area are reminded that vulgar language, excessive noise, and unruly behavior will not be tolerated.

PETS A. Dogs must be on a hand held leash at all times when outside the confines of the individual dwelling units. B. No pets shall be fenced, housed or tied in any area outside the confines of the individual dwelling units. C. Pet owners shall be responsible for cleaning up any feces or other messes left by their pets in the Association common areas. D. The Orange County Animal Control can enforce the City ordinance on barking dogs. E. No livestock, poultry or animals of any nature shall be raised, bred or kept in any units, except caged birds. No more than three domesticated household pets (such as dogs and cats) may be kept in a unit, providing that they are not kept or maintained for any commercial purposes.

PERSONAL PROPERTY A. Personal property, including but not limited to tricycles, bicycles, chaise lounges, chairs and barbecues are to be housed within the confines of the individual dwelling units when not in use. Such property shall never be placed in a common area. B. All personal property and trash left in the driveways any day other than trash pick-up day may be hauled away, and a charge will be assessed the owner of the property. C. You may place a maximum of four (4) plant pots in the common area cement surfaces adjacent to the dwelling unit and garage. These pots must be maintained by the homeowner. Pots that are not maintained will be removed at the homeowner’s expense. Such items must be placed by the homeowner in a manner and location that is reasonable under the circumstances, and must not interfere directly or indirectly with egress or ingress from and/or to any common area. Such items must not be placed in any location that may cause personal injury or property damage to any third party. The location, maintenance and all other aspect of such items is strictly the responsibility of the homeowner and the homeowner must ensure that there is full compliance with said rules should they place such items in the common area. D. Any structure used to support plants must be painted the same as stucco. Page 11 of 25 Rules and Regulations – revised 11/12/12

RECREATIONAL AREAS A resident of Beachwalk must accompany all guests using the recreation areas at all times. Residents are reminded that they are responsible for the actions of their guests.

VOLLEYBALL COURT RULES A. Use of the volleyball court shall be restricted to homeowners of Beachwalk, tenants of homeowners, and their guests. B. A valid pool key/FOB must be presented to the Association’s Security Guard upon request. C. The volleyball court hours of play shall be not before 8:30 a.m. and shall cease at dusk. D. Homeowners are responsible for the conduct of their guests and their tenant’s guests while using the court. All persons using the court are reminded that vulgar language, excessive noise, and unruly behavior will not be tolerated. Please be aware of all homeowners’ right to quiet enjoyment of the community’s amenities. E. The court and immediate grass area shall be kept clean during play and upon cessation of play. Please use the trashcan provided for all trash.

POOL RULES A. All persons using the pools do so at their own risk. There are no lifeguards on duty. B. All pool hours and posted rules must be followed. Violators are subject to a fine of $100.00 for using the pools after hours. C. Pools are not be used while being cleaned or serviced. D. Use of the pool facilities shall be restricted to the following persons. Security guards will check keys/FOB. 1. Residents of Beachwalk 2. Immediate family members of residents. (Grandparents, parents, children and grandchildren.) 3. Live-in guests of residents Page 12 of 25 Rules and Regulations – revised 11/12/12

4. Guests of residents must be accompanied by a resident eighteen (18) years of age or older at all times E. Owners/residents are responsible for the conduct of all family members and guests who use the pool facilities and must make sure that all Beachwalk Rules and Regulations as well as pool rules are obeyed. Violations of any rules may result in loss of pool privileges and/or a fine. F. The number of guests that owner/residents may take to the pool is as follows: 1. A maximum of three (3) guests per Beachwalk household at anytime. 2. From three (3) to fifteen (15) with permission from the Pool Chairman or may contact Management company as listed in the Breeze. If the Pool Chairman is unavailable another Board Member may give permission. This rule shall apply to satellite pools only. 3. More than fifteen (15) with the permission of the full Board. Request of this type must be made in sufficient time for consideration at the next scheduled Board Meeting. This rule shall apply to satellite pools only. 4. Residents between the ages of fifteen (15) and seventeen (17) may invite only one guest to any pool. 5. No pool will be made exclusively available for the private use of any resident and his/her guests. All residents have the absolute right to use any pool at any time during posted pool hours regardless of the number of guests present. G. Children under fourteen (14) years of age and non-swimmers must be accompanied at all times by a resident adult eighteen (18) years of age or older while in the pool areas and supervision must be within 20 unobstructed feet of the child/non-swimmer. H. Children under fourteen (14) years of age may not use the Therapy pool (spa) or saunas unless accompanied by an adult. I. Swimmers are requested to shower before entering the pool. In addition, anyone with sores, cuts, bandages, etc. is not allowed in the pool. The State of California, under Title 22, §65542 states: “All patrons known to be, or suspected by the enforcing agent or the management of being afflicted with an infectious disease, suffering from a cough, cold, or sores, or wearing bands, or bandages shall be excluded from all public bathing places unless the patron submits a current written statement, signed by a licensed physician, confirming that the patron does not present a health hazard to other pool users.” J. Children not yet toilet trained must wear commercial swim diapers while using the pool. This complies with Public Health requirements. In the event of a pool contamination the resident must notify Management and wait for pool vendor to arrive and close the pool. The pool will remain closed until maintenance can Page 13 of 25 Rules and Regulations – revised 11/12/12

remedy the situation. The homeowner may also be called to a Hearing and possibly fined. K. Bobby pins, hairpins and metallic hair ornaments should be removed before entering the pool as they damage and stain the surface of the pool. L. Dogs and other pets are not permitted in the pool areas by order of the County Health Department. M. No obscene behavior, profanity, running, horseplay, or boisterous conduct, will be permitted. Offenders will be banned from using the pools for one (1) year following their second offense. N. Diving or jumping from any where around the pool is strictly forbidden. Diving is not allowed, no exceptions. O. Glass objects are not allowed in the pool area. P. Equipment not designed for pool use will not be allowed in the pool area. This includes scuba gear, bicycles, surfboards, and skateboards, Frisbees, truck inner tubes, etc. Q. The segregation of washrooms and saunas by sex shall be observed at all times. Violators are subject to a fine of $100.00 and/or arrest. R. Nudity in areas accessible to both sexes shall not be permitted. S. No person, regardless of age, is permitted to carry and/or consume alcoholic beverages anywhere in the pool area. T. Lap swimmers should swim on the lines rather than between the lines. During busy times lap swimmers should use the lanes closest to the pool wall. U. If the pool cover or Jacuzzi/spa cover has not been removed during such time as the pool area is open, residents or guests should not attempt to remove the cover(s) or utilize pool and/or spa while covered or partially uncovered. Such actions as removing the covers may result in injury or possible drowning.

POOL TABLE USE RULES A. The pool table is located in Clubhouse 1. Hours are from 9:00 a.m. to 10:00 p.m. Sunday through Thursday 9:00 a.m. to 11 p.m. Friday and Saturday. B. If player is checking out equipment, some form of identification (FOB or Medeco key) must be provided to the guard. Page 14 of 25 Rules and Regulations – revised 11/12/12

C. Play will be for one hour; however, if no one is waiting or the table has not been reserved, play may continue until the next group of players arrive. D. No smoking of any type or drinking or eating is permitted over or near the pool table. E. The pool table is an expensive piece of furniture. Please treat it with care.

SATELLITE DEVICES A satellite dish must be installed pursuant to Architectural Guidelines.

TRAFFIC REGULATIONS California Vehicle Code is enforced by the Huntington Beach Police Department within Beachwalk. A. Maximum speed in Beachwalk is 20 MPH. B. Stop signs and other traffic signs shall be obeyed. C. Use of motorized vehicles on pathways or greenbelts is prohibited. D. Bicycles, skates and roller blades, scooters and skateboards are not permitted on internal pathways. The Security Guards are exempt in order to facilitate their speedy access to all areas of Beachwalk. This is a very dangerous practice, especially for pedestrians as visibility is often restricted leading to collision injuries. E. Bicycles may not be ridden on the grass or through landscape areas, internal pathways and sidewalks F. No parking in designated fire lanes (all streets with red curbs). Violators will be subject to immediate towing. G. Motorized vehicle not licensed for use on public streets are specifically prohibited from operating on streets, pathways and other common areas within Beachwalk. H. There should be no obstructions to the flow of traffic i.e. Hockey equipment skateboard ramps or basketball hoops. I. Vehicles should not obstruct sidewalks.

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PERMITTED VEHICLES A. This classification includes the following: 1. Automobile not exceeding 20 feet in length. 2. Pick-up trucks, vans and campers not exceed 7 ft. 6 in. in height. 3. Motorcycles B. These types of vehicles shall be subjected to the following parking stalls: 1. Each family is to park its vehicles primarily in the garage or driveway of their unit. 2. No permitted vehicle shall be parked in a designated parking stall other than a driveway continuously for a period, which exceeds ninety-six (96) hours. Enforcement will include chalk marking of tires and recording on a written form the mileage of the vehicle and its VIN number. Cars covered with a tarp will have the tarp partially removed to record the mileage and VIN number. The tarp will then be replaced as found. The towing companies require the mileage and VIN number be verified during the ninety-six (96) hour observation. Vehicle must be moved for a minimum of two hours or driven for 2 miles. 3. Resident and/or guest parking shall be limited to designated parking stalls (marked by white lines). Vehicles, etc., parking in undesignated areas will be subject to tow-away at owner’s expense. 4. Vehicles shall not park in Beachwalk with its tires on the grass, sidewalks, or curbing.

PROHIBITED VEHICLES A. Commercial vehicles or privately registered vehicles used or maintained for the transportation of persons or for the transportation of property, including buses, motor trucks, trailers, semi-trailers, are prohibited from parking within the confines of Beachwalk, except while loading or unloading persons and or property, or when such vehicle is being used in connection with the performance of a service to or on a property within Beachwalk. Parking shall be limited to the duration of the service being performed and in no case, more than twenty-four (24) hours without written permission of the Board, and the placement of the vehicle shall not obstruct street travel lanes or access to driveways and guest parking areas. B. Commercial pick-up trucks and vans used by residents, as personal transportation to and from their place of employment will be considered “Permitted Vehicles”, provided they do not exceed the height limitation of 7 feet, 6 inches. C. Disabled or inoperable vehicles shall not be parked anywhere, including anywhere on the driveway, except inside the vehicle owner and/or homeowner’s garage. Page 16 of 25 Rules and Regulations – revised 11/12/12

RESTRICTED VEHICLES All vehicles (other than prohibited vehicles), which are in excess of 7 feet 6 inches high are classified as “restricted” and are subject to the following Rules and Regulations. A. Each home unit will be permitted to park one (1) such vehicle within the confines of Beachwalk for a limited period of time not to exceed thirty six (36) hours in any seven (7) consecutive days (such 36 hour limit to be consecutive hours with one break in the running to be permissible). B. During the permitted period, such vehicle may be parked within, and on, the driveway of the responsible resident’s home unit in such a manner so that it neither protrudes into the street nor lays upon adjacent vegetation, or, such vehicle may be parked on one of the group or guest parking spaces closest to the resident’s home unit, but only so long as the vehicle does not protrude into or obstruct the common roadway. C. A restricted vehicle needed as a fill-in vehicle to use on a day-to-day basis to take the place of a private passenger vehicle needing necessary repairs may be used 30 days maximum as such fill-in so long as the responsible resident gives immediate notice of such to the Management company and at the same time provides Management company with the name and telephone number of repairing entity and/or person. The maximum yearly use of such vehicle for fill-in purposes is ninety (90) days total per year.

TRAILERS, BOATS AND NON-PERMITTED VEHICLES A. Mobile home trailers, trailer mounted boats, other trailer mounted equipment, and non-motorized vehicles of all kinds, not classified as prohibited vehicles, and regardless of height, shall be subject to the provisions of Restricted Vehicles. B. Under no circumstances shall boats and other equipment, not wheel mounted, be placed on driveways, streets, or in designated parking areas.

REPAIRING OF VEHICLES There shall be no repairing of vehicles on streets, driveways, or in designated parking stalls, except for emergency repairs.

GUEST VEHICLES Vehicles of all types belonging to or being operated by guest of Beachwalk residents shall be subject to the same Rules and Regulations previously stated. Page 17 of 25 Rules and Regulations – revised 11/12/12

USE OF GARAGES A. Doors must be kept closed when the resident is not working in the garage. B. Garage may be used for parking of vehicles and related purposes only. C. Garages may not be converted to livable area or subdivided into rooms. This is against the Huntington Beach City Code. D. There shall be no ball playing against the surface of garage doors or against any part of the buildings.

SECTION D KEYS, FOBS, CARD KEYS, AND OPENERS A. All keys, FOBs, card keys and electronic openers are the property of the homeowner. Each unit is entitled to two (2) keys, FOBs and card keys that open pedestrian gates within the community, and to two (2) card keys that open the vehicle gate on 17th Street. No charge is made for these and they must be transferred to the new owner through escrow. Failure to do so will result in charges as a lost or stolen item as set forth below. B. Electronic openers, keys, FOBs and card keys in excess of the above are a part of the sale as negotiated between buyer and seller. Additional keys and card keys required for the residents of a unit are available from the Management Company upon payment of the following charges . KEYS/ FOB $35.00 GATE CARD KEYS $ 5.00 REMOTES $50.00 C. Replacement for lost or stolen keys or card keys can be obtained from the Management Company upon payment of above listed replacement charges. These charges will be refunded in the event that the lost or stolen key or card key is recovered and returned to the Management Company.

SECTION E SELLING A HOME UNIT A. Certain formalities affecting the interest of the BEACHWALK HOMEOWNERS ASSOCIATION are handled through the escrow: 1. Collection of outstanding, dues, assessment, etc. 2. Pro-rating of dues and assessment. 3. Transfer of Association keys, FOBS, gate card keys and electronic openers. Page 18 of 25 Rules and Regulations – revised 11/12/12

B. A lien in the name of the Association will be recorded on any home within the Beachwalk Homeowners Association that is delinquent on their Association dues or any other amount that has been assessed against said homeowner. See the current Collection Policy in regards to placement of liens, and collections of monies due the association at time of sale. All monies will be collected during the closing of escrow. C. The process is simplified if the present owner will advise the Management Company that a sale has been entered into escrow. D. Information received through escrow enables the Association to keep their records current. E. You will save yourself possible delays and problems if you will comply with these regulations when you sell your unit.

SECTION F PROPERTY INSURANCE The Association shall maintain insurance on all common areas in accordance with our CCRs. In addition, the Association may choose to (but is not obligated to) maintain insurance on the dwelling units. A. Each homeowner is responsible for reviewing and understanding the limits of coverage provided by the Association master insurance policy. Homeowners can review the Beachwalk website (www.beachwalkhoa.org) and/or call the management company for current insurance information. B. Each homeowner is responsible for obtaining and maintaining the following insurance: 1. Personal Property Coverage that insures unit contents such as furniture, clothing, dishes, appliances, computers, etc.. Owners with high value jewelry, art or collectibles will need a "scheduled or unscheduled floater." 2. Personal Liability Protection. Owners must carry their own personal liability insurance in the event someone is injured in their unit. This should also cover injuries in neighboring units caused by fires or floods originating in an owner's unit. 3. Loss of Use Protection that pays for extra expenses (hotel, restaurants, etc.) while the owner's home is uninhabitable because of damage. 4. Loss Assessment Coverage that covers the owner's portion of special assessments levied by the Association resulting from insured losses. 5. Real Property Coverage that insures those portions of the premises not insured by the Association's master policy, such as hardwood floors, kitchen cabinets, plumbing and electrical fixtures, etc. 6. Earthquake Loss Assessment that pays for losses related to an earthquake. C. For any loss attributable to an owner that results in a claim against the Association's insurance, the owner shall pay the deductible. Losses attributable to owners include Page 19 of 25 Rules and Regulations – revised 11/12/12

circumstances due to their own negligence or because something under their control failed (such as dishwasher leaking or architectural modification, i.e. skylights, failing.) D. To initiate a claim against the master insurance policy, homeowners must contact the management company, in writing, as soon as reasonably practicable. Failure to initiate a claim as soon as possible may result in the insurance carrier denying the claim. SECTION G CLUBHOUSE 2 RESERVATION PROCEDURE

1. The homeowner must call Keystone Pacific Property Management (Keystone) to see if the date they want is available. If available, the date will be tentatively reserved. 2. In order to confirm and secure the reservation the homeowner event host ( defined as Beachwalk resident homeowner or resident tenant) must complete and mail the Use Agreement and a check for $290; $90 for use of the clubhouse and $200 for security deposit to Keystone. Note: The Use Agreement is available on the Beachwalk web site at www.beachwalk.org or by contacting Keystone at 949-833-2600. All checks should be made payable to Beachwalk Homeowners Association. 3. Keystone will deposit the check, e-mail confirmation to the homeowner event host and notify security that the homeowner event host can pick up the clubhouse key. If email is not available to the homeowner, this should be noted on the Use Agreement in the section “Telephone and e-mail address of Host” and confirmation will be made by phone. 4. The homeowner event host is responsible for picking up the Clubhouse 2 key from security the day before or day of the event. 5. At the conclusion of the event, the homeowner event host will be responsible for cleaning the clubhouse as required and returning the key in a drop box in Clubhouse 1 labeled “Clubhouse 2 Keys”. 6. The Janitorial service will check the clubhouse to determine if the required cleaning has been completed and will empty the trash. If the janitorial service determines that the homeowner event host did not complete the required cleaning, they take digital photos, complete the required clean up and notify Keystone of the charge which will be deducted from the security deposit. 7. Keystone will notify the homeowner event host of the cleaning charge and return the balance of the security deposit. Reimbursement checks will be cut the first week of each month and will be signed by the Board at the monthly meeting. Emergency reimbursement checks (out of cycle checks) will require a $15.00 fee paid by the homeowner. Page 20 of 25 Rules and Regulations – revised 11/12/12

CLUBHOUSE 2 RESERVATION PROCEDURE

Conditions of Use 1.

The fee for reserving the Clubhouse is $90 (nonrefundable). A $200 security deposit is also required. 2. Reservations will be accepted from adult residents of Beachwalk only. The adult resident making the reservation must be present at all times during the event and is responsible for cleanup as well as any damage to the facility. 3. Maximum occupancy of Clubhouse 2 is 93 persons. 4. All activities must be confined to the inside of the Clubhouse and the front deck. All other areas, including pool areas, are “off limits” to individuals using Clubhouse 2. Please be considerate of your neighbors and keep the doors closed and the noise level down after 10:00 p.m. 5. Excessive noise or misuse of the Clubhouse may result in suspension of the right to use the Clubhouse facilities in the future, as stated in Association by-laws, Article 6.B. 6. Activities must terminate at 11:00 p.m. on Sundays thru Thursdays, and midnight on Fridays and Saturdays. If the clubhouse is not vacated on time, violations will be issued, as well as penalties to cover expenses such as overtime for the security guard. If necessary, the police will be called. 7. No “open houses”. Attendance is to be by invitation only. 8. No admission fee, donation, or paid ticket function may be held. This includes fundraising for political, charitable, institutional, or educational organizations. The only exceptions are fund-raising functions for groups or committee within the Beachwalk community in which all funds will be utilized for the benefit of Beachwalk. 9. No fee, admission charge, or price shall be charged for the distribution or service of any alcoholic beverages at any function. No organization shall plan any central or organized distribution of liquor, even though no fee, contribution, or charge is demand or asserted. All State of California alcoholic beverage laws and ordinances must be complied with. 10. No electricity from the clubhouse outlets shall be used for anything outside the Clubhouse. 11. Guests are subject to Beachwalk Rules & Regulations. Should violations occur, the event host will be held accountable. 12. Guests and hosts will vacate the Clubhouse immediately if requested by a member of the Board, Police or Fire Department representative, Beachwalk Security guard, or the Management Company. 13. All appliances, lights, heating and air conditioning must be turned off and all doors closed and locked before leaving. 14. The Clubhouse furniture must be returned to its original location and all trash must be placed in the trash cans before turning in the key.

Page 21 of 25 Rules and Regulations – revised 11/12/12

CLUBHOUSE 2 RESERVATION PROCEDURE

15.

The Clubhouse key must be returned promptly to the drop box in Clubhouse 1 labeled “Clubhouse 2 Keys”. 16. Security deposit will be refunded as soon as possible after the assigned representative inspects the Clubhouse. If the deposit is not sufficient to pay for unusual damages or excessive cleaning, the Board of Directors may impose additional assessments and/or penalties to the event host. 17. Bounce houses shall not be placed immediately next to the volleyball court.

Clubhouse Policy for Fee Waivers

1. An application for the use of Clubhouse 2 must be submitted in advance for any event held requesting a fee waiver.

2. The Association will permit use of the Clubhouse 2 at no charge for Association election purposes and campaigns according to California Civil Code 1363.03 and the Association’s election rules.

3. In order to qualify for a fee waiver, the event must be a non-commercially sponsored event held for the whole community and approved in advance by the Board of Directors.

4. The Board may approve money in support of the event to cover publicity and/or refreshments not to exceed $150 and will be reimbursed based on receipts.

Page 22 of 25 Rules and Regulations – revised 11/12/12

CLUBHOUSE 2 RESERVATION PROCEDURE

Reservation Process 1.

Contact Keystone Pacific Property Management at (949) 833-2600 to coordinate scheduling and get verbal approval for the event date.

2.

Complete and return this Use Agreement to Keystone Pacific Property Management at 16845 Von Karman Avenue, Suite 200, Irvine, CA 92606 within two weeks of receiving verbal confirmation of your event date. Include a check for $290 made out to Beachwalk Homeowners Association: $90 use fee and $200 security deposit. If your Use Agreement and payment are not received within two weeks of the date confirmation, Keystone Pacific will consider the date to be available.

3.

Contact Beachwalk Security at (714)960-3339 the week prior to the event to coordinate key pickup and drop-off times.

4.

Check Security hours with Keystone. The key for Clubhouse #2 MUST be picked up no later than the night before the event.

Event Details Date of Event: Hours of Event: Purpose of Event: Estimated number of attendees: If your event includes use of greenbelt area, e.g. bounce house, please explain: ________________________________________________________________ Attach a copy of the Insurance Declaration from your vendor. (i.e. bounce house, caterer, etc.) Name of Beachwalk Resident hosting Event: Telephone of Host: E-mail address of Host: If the host has no email, please note this and contact will be made by phone. Page 23 of 25 Rules and Regulations – revised 11/12/12

CLUBHOUSE 2 RESERVATION PROCEDURE

Use and Release Agreement I hereby attest that I have read, understand, and agree to abide by the conditions for use of Clubhouse 2, as set forth in this Beachwalk Use Agreement. I accept responsibility for any liability arising out of the use of Beachwalk Clubhouse 2. I expressly waive, release, and discharge Beachwalk Homeowners Association, its Board of Directors, agents, and employees from all liability, responsibility, claims and causes of action that I, or any other person, may have or may claim to have, arising out of the use of Beachwalk Clubhouse 2, including consumption of alcohol, at my private function. It is my intention that this Release be binding on the heirs, legal representatives, and assigns of any guest and me. I have read this Release and understand the terms and legal significance, and have executed this Release voluntarily. Date: Print Name: Address: Signature:

Clubhouse 2 Reservation Procedure Revised August 2008 Revised December 2010 Revised June 2012

Page 24 of 25 Rules and Regulations – revised 11/12/12

SECTION H MEDIA POLICY

Purpose: The purpose of the Association media is to provide a method of communication from the HOA to the members and community. The HOA maintains a bulletin board and website, and publishes a newsletter to keep members informed about events, board meetings, rules and regulations, and other items of general interest. Media Policy 1. The content and delivery of the newsletter, titled The Beachwalk Breeze, shall be in compliance with the Corporations Code §5016. Notices and Reports Via Newsletters. Delivery shall be to the address of the member, either to the physical address within Beachwalk or to the mailing address on the homeowner’s account. The newsletter shall also be posted on the bulletin board in the common area and on the HOA website. 2. In accordance with the Beachwalk HOA Election Rules, no Association media resources shall be used for campaigning purposes, including the newsletter, website or bulletin board. 3. All media shall avoid including anything that could result in claims of defamation, invasion of privacy, publishing of sensitive financial or personal information, etc. Content shall be family friendly. 4. Articles must be written by members of the Board of Directors, appointed committee members, management employees or HOA service providers such as attorneys, accountants, reserve analysts, etc. Before publishing in the media or posting on the bulletin board, every article must be reviewed and approved by the media committee, which consists of three members of the Board of Directors. 5. Homeowners and tenants are allowed no more than one 75-word advertisement in each newsletter per household. Advertisements are printed on a space available basis. 6. Homeowners and tenants may suggest items to be added to the calendar page, subject to the approval of the media committee. Event announcements, even for events sponsored by businesses, are not to be used as additional advertisements. 7. Homeowners and tenants may send their advertisements and calendar items directly to the volunteer newsletter editor. The deadline for publishing in the next month’s newsletter shall be printed on a regular basis (generally around the 20th day of the month). All other issues shall be directed toward the management company. 8. Homeowners may institute their own media, such as newsletters or websites, at their own expense, provided they do not give the impression they are an official publication of the HOA. Such media shall include a disclaimer that the publication is not sponsored by, nor does it speak for the Association.

Adopted 11/12/12

Page 25 of 25 Rules and Regulations – revised 11/12/12