Gleneagle Country Club Association. Rules and Regulations 2015

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1 Gleneagle Country Club Association Rules and Regulations of 15 10/19/2015

2 Table of Contents I. Animals Page 2 II. Nuisances Page 4 III. Storage of Items & Parking Page 5 IV. Trash Page 7 V. ACC Regulations Page 7 VI. Minimum Standards for Maintenance of Lots Page 8 VII. Signs Page 9 VIII. Garage Sales Page 9 IX. Residential Business Page 10 X. Delegation of use Page 10 XI. Notices Page 10 XII. Violation Investigation Page XIII. Contesting Violation Page 11 XIV. Penalty Page 12 XV. General Penalties Page XVI. Delinquent Ass. Page 14 XVII. Certification Page 14 2 of 15 10/19/2015

3 The Board of Directors of the Gleneagle Country Club Association ( GCCA ) is invested with the authority and responsibility to enact and enforce rules and regulations governing various activities and conditions within the Gleneagle Country Club ( GCC ) community. The intent of Rules and regulations enacted by the GCCA Board is to accomplish one or more of the following objectives: preserve or improve the quality of community life, promote community safety and health, preserve the community atmosphere and aesthetics and to support property values within the GCC community in accordance with the principles of, and authority granted by, the GCC Declaration of Restrictive Covenants ( CCRs ) and the GCCA. The GCCA Board is granted authority under Washington law and the CCRs to enact and enforce rules and regulations of the CCRs entitled "Association Rules and Regulations" provides: The Board shall also have the power to adopt, amend and repeal Rules and Regulations, as it deems reasonable, which may include the establishment of a system of fines and penalties enforceable as assessments. The Rules and Regulations shall govern such matters in furtherance of the purposes of the Association, including, without limitation, the use of the Common Property, signs, parking restrictions and enforcement, trash collection, minimum standards for maintenance of Lots consistent with such standards as may be set forth in this Declaration or adopted by the ACC, and any other matter which is within the jurisdiction of the Association; provided, however, that the Rules and Regulations may not discriminate among Lot Owners and shall not be inconsistent with this Declaration or the Articles or Bylaws of the Association. Copies of the Rules and Regulations as they may be, from time to time, adopted, amended or repealed shall be available in the principal office of the Association. A notice setting forth the adoption, amendment or repeal of specific portions of the Rules and Regulations, shall be delivered to each Lot Owner. The Rules and Regulations shall have the same force and effect as if they were set forth in and were part of this Declaration, and shall be binding on the Lot owners and their successors in interest, whether or not actually reviewed thereby. In the event of any conflict between the Rules and Regulations and any other provisions of this Declaration, or the Articles or Bylaws of the Association, the provisions of this Declaration shall prevail, followed, in order of priority, by the provisions of the Articles, then by the provisions of the Bylaws and then by the provisions of the Rules and Regulations. Pursuant to this CCR provision and the laws of the State of Washington, the GCCA Board of Directors has adopted the rules and regulations set forth below. They include not only specific standards and prohibited activities/practices for the community, but also a schedule of penalties for violations, which are enforceable as assessments, together with procedures establishing the right of GCC residents/owners to have a hearing if they follow the applicable procedure to contest a violation. Please note that relevant provisions from the CCRs are reproduced below for emphasis, and rules or regulations that relate a particular CCR provision are set forth below that provision for the reader s convenience. CCRs 8.1 ("Maintenance of Animals") provides: I. ANIMALS No animals or fowl shall be raised, kept or permitted upon any lot or any part thereof except as permitted by this Article. In single-family dwelling units not more than two (2) domestic dogs and/or cats and caged birds may be kept within the dwelling, provided said dogs, cats and pet birds are not permitted to run at large and are not kept, bred or raised for commercial purposes. No domestic pet may be kept if it is a source of annoyance or a nuisance. The Association shall have the authority to determine whether a particular pet is a nuisance or a source of annoyance, and such determination shall be final and conclusive. Pets shall be registered, licensed, and inoculated as required by law. Each lot owner shall be responsible for cleaning up any excrement or other unclean or unsanitary condition caused by any animal of such lot owner or his or her guests or tenants. All animals belonging to lot owners, tenants or guests must be kept within an enclosed fence or yard or on a leash attached to an immovable object or on a leash being held by a person capable of controlling the animal. 3 of 15 10/19/2015

4 1. The member/owner of a lot is ultimately responsible for: (1) any animal that resides on the member/owner's lot, (2) any animal that belongs to a guest visiting the member/owner's lot, and (3) any animal that belongs to a tenant residing on a member/owner's lot. 2. Animals taken off private property must be on a leash being held by a person capable of controlling the animal. 3. A lot owner, tenant, or guest of a lot owner taking an animal off of private property must have in his or her possession a proper means of disposal of animal wastes. Examples of a proper means of disposal would be a scoop and some type of bag for collection of animal wastes. 4. All animal waste "deposited" on property not belonging to the member/owner must be collected and placed in a trash receptacle or other means of lawful disposal. 5. Within the GCC, member/owners, tenants and guests shall not allow an animal to roam free off of the lot being occupied by a member/owner or tenant. II. NUISANCES CCRs 8.3 ( Nuisances ) provides: No noxious or offensive activity shall be conducted in any portion of Gleneagle CC nor shall anything be done or maintained therein in derogation or violation of the laws of the State of Washington, the City of Arlington or any other applicable governmental entity. Nothing shall be done or maintained on any portion of Gleneagle CC, which may be or become an annoyance or nuisance to the neighborhood or detract from the value of Gleneagle CC as a high quality residential community. After providing interested parties with a reasonable notice and opportunity to be heard, the Board shall determine whether any given use of a lot or dwelling unit unreasonably interferes with the rights of the other lot owners to the use and enjoyment of their respective lots and dwelling units, or the Common Property, and such determination shall be final and conclusive. For the purposes of Section 8.3, the normal operation and maintenance of the golf course shall not be considered a nuisance. 1. The Board must in all instances act reasonably and in good faith in determining whether an activity constitutes a violation of CCR Multiple complaints regarding allegedly noxious, offensive or nuisance activities by different member/owners within a GCC neighborhood claiming or stating that a specific activity constitutes a violation of CCR 8.3 will normally be accorded greater weight by the Board than a single complaint by a single member/owner in a neighborhood. 3. Fireworks. The lighting, exploding or launching of any type of fireworks on any lot or other property generally subject to the Gleneagle CCRs in violation of State or municipal laws is strictly prohibited as both a nuisance and safety hazard. The lighting or launching of all aerial-type fireworks (i.e., those that are thrown, launched or propelled through the air) on any such lot or other property is similarly prohibited whether or not the same is illegal under State or municipal law. A GCCA member shall be subject to the fine(s) specified in XV (2) below if such a violation is committed by that member or that member s family or if, committed by any third-party with the member s consent and/or assistance. 4 of 15 10/19/2015

5 III. STORAGE OF ITEMS AND PARKING CCRs 8.4 ("Storage of Items; Parking") provides: No storage of property or goods which may be or become an annoyance or nuisance to neighboring Lots or to Gleneagle CC in general shall be permitted in open view from the street or from any Lot or the Common Property. Prohibited storage shall include, without limitation, the storage or accumulation of cordwood without screening or neatly stacking the cordwood. No trailer, travel trailer, boat trailer, mobile home, motorhome, boat, camper, tent, recreational vehicle or similar property shall be stored or erected on any Lot for longer than forty eight (48) consecutive hours within any thirty (30) day period without prior written approval of the Board or any committee the Board may establish to be responsible for such approval, unless such property is stored in a garage. In determining whether to grant approval factors to be considered shall include, but need not be limited to, the visibility of the item in question from the street and from neighbors properties, whether or not attractive screening is or can be provided, and Member complaints. Approval may be reasonably conditioned and may be time-limited. All garage doors shall remain closed at all times except as reasonably required for entry to and exit from the garage. Upon forty eight (48) hours notice to the owner of any improperly parked or stored vehicle, boat or other equipment, the Association, has the authority to remove at the owner's or Lot Owner's expense any such improperly parked or stored items. The cost of such work by the Association shall be assessed as provided in Section 6.4 hereof. 1. Vehicle Parking. The outdoor storage of vehicles and vehicle accessories is permitted provided the following standards are met: a. All vehicles shall be parked in a designated driveway, parking space (on street adjacent to residence), carport or garage. Vehicles must be in running condition and display current license tabs. b. Junk vehicles, or parts thereof, or vehicle maintenance accessories such as tow dollies, engine pullers, etc., shall not be stored outside of an enclosed building except in an area which is not visible from any part of any private property, public streets, commons area, highways and sidewalks. c. Canopies, shells, un-mounted campers, dune buggies, ATV's, boats with or without trailers, motorcycles, etc., shall not be stored in any yard adjoining a street or commons area. d. Storing a vehicle by covering it with a tarp, plastic sheets, or any item other than a commercially made car or RV cover that is in good repair is not an acceptable substitute for an enclosed garage. e. No vehicle intended for commercial use, having more than two axles, or exceeding seven and one-half feet in width such as truck tractor, truck trailer, dump trucks or construction equipment, shall be stored in GCC. 2. Recreational Vehicles. In no circumstance shall a recreational vehicle be stored in such a way that any portion of the vehicle encroaches upon a vision clearance area, nor shall a recreational vehicle be stored on or overhang any public right-of-way. 3. Parking Trailers, Campers, Motor Homes, and Trucks. a. No person shall detach and/or park any trailer or camper upon any street or alley. 5 of 15 10/19/2015

6 b. Persons stopping, standing or parking trailers that are attached to towing vehicles shall abide by all parking regulations as set forth herein and in the CCRs. c. No person shall stand or park a truck, motor home or truck tractor-trailer combination which has a manufacturer's gross vehicle weight in excess of twelve thousand pounds, or a length in excess of twenty three and one half feet, or a width in excess of seven feet within Gleneagle Country Club unless (a) property/merchandise is being actively loaded or unloaded from such vehicle; or (b) the vehicle is a City vehicle or public utility vehicle providing a service for the public; or (c) the vehicle is an emergency vehicle; or (d) such vehicle is currently being employed at and utilized at a specific location within a residential zone for the purpose of providing current services such as construction, carpentry, plumbing or landscaping to such residence or location. d. Motor homes may stand or park on Gleneagle streets for a maximum period of seventy-two (72) hours if no other parking is available; provided that said vehicles do not violate any parking restrictions (such as posted time zones) and meet all other parking regulations herein, City ordinances and the GCC CCRs. 4. Repairing Vehicles. It is the intent of this subsection to prevent significant or major vehicle repairs in streets and yards. Major servicing, repairing, assembling, wrecking, modifying, restoring or otherwise working on any vehicle shall be prohibited within the public right-of-way. Major servicing, repairing, assembling, wrecking, modifying, restoring or otherwise working on any vehicle at any residential premise shall be prohibited if: (a) (b) The vehicle is not owned by an occupant of the residence, or The total of all the above described work on vehicles exceeds a one-time five [5] day maximum time frame unless such work is conducted within an enclosed permanent structure or a garage. Such work shall only be done between the hours of 7a.m. and 7p.m. It is not the intent of this subsection to eliminate, prevent or restrict property owners from the day-to-day maintenance and minor repairs of their vehicles in their yards or driveways. 5. Use of Streets and Alleys. The paramount purpose of the public streets, cul-de-sacs, and alleys within GCC, is to facilitate vehicular and pedestrian travel and provide corridors for utilities, and emergency or service vehicles. Those uses that are inconsistent with this purpose are prohibited unless otherwise approved in writing by the GCCA. No person shall stop, stand or park a vehicle or place other items in the street in violation of this section. 6. Public Rights of Way Obstruction a. The existence of any obstruction to a street, alley, or sidewalk; or any excavation in or under any street, alley, crossing, or sidewalk that is prohibited by City ordinance or that is made without City Approval, or that having been made by City Approval is kept and maintained after the purpose thereof has been accomplished or for an unreasonable length of time, which time shall not in any event be longer than the period specified in any permit issued therefore, is hereby prohibited and declared to be a nuisance within GCC. b. Basketball Hoops. The erection or maintenance of a basketball hoop, or the permitting of others to do so, within the right-of-way of any public street situated such that persons using the basketball hoop are playing or would reasonably have to play within the improved portion of the public right-of-way is hereby prohibited and declared to be a nuisance within GCC. All basketball hoops must be removed from the right-of-way when not in use. 6 of 15 10/19/2015

7 IV. TRASH CCRs 8.5 ("Trash") provides: No garbage, refuse or rubbish shall be deposited or kept on any lot except in a suitable container. All areas for the deposit, storage or collection of garbage or trash shall be substantially shielded or screened from neighboring property, streets, golf course, private recreation areas and Common Property; provided, however, that all trash and organic yard waste that is required to be placed at a designated point in order to be collected may be placed and kept at such designated point, and need not be in any container for a period not exceeding twenty four (24) hours prior to pick up of such trash and organic yard waste. All equipment for the storage or disposal of such material shall be kept in a clean and sanitary condition. 1. Within twenty-four (24) hours after pickup, all containers shall be removed from the streets and front yards. V. ARCHITECTURAL CONTROL COMMITTEE ( ACC ) REGULATIONS CCRs 9.2 ( Purpose of the ACC ) provides: The ACC shall adopt architectural guidelines, establishing standards for the exterior design, building materials and placement of all structures to be constructed on Gleneagle CC and the exterior landscaping of such structures. The ACC may amend the architectural guidelines from time to time if it determines that such amendments are in the best interest of the Lot Owners as a whole. The ACC shall have the right to review all plans and specifications for any building or structure to be constructed or modified within Gleneagle CC and any, landscaping plans and either approve or reject or approve with conditions such plans based on whether they conform to the architectural guidelines. Enforcement of these covenants shall, be carried out by the Association. The purpose of the ACC is to insure that development within Gleneagle CC maintains the wooded character of the area and is of high quality and that new development is compatible with the development in existence. 1. All major landscaping shall be performed in accordance with a landscape plan submitted to and approved by the ACC. 2. Minor landscaping activities such as the planting of a single tree in a yard, the replacement of a plant or shrub by a similar plant or shrub, or the replanting of flower gardens, for example, do not require approval by the ACC. CCRs 9.3 ( Architectural Control ) provides: No building, fence, deck, patio, wall, kennel or other structure shall be erected, placed or altered on any Lot, nor shall any exterior addition thereto or change or alterations therein be made nor shall any nondeciduous trees be cut except as necessary to clear land for a residence, including an access route and a reasonable building footprint, until the plans, specifications and plot plans are submitted to the ACC and found by the ACC to be in accordance with the guidelines and the procedures established by the ACC. If any trees are cut without the prior written approval of the ACC, the Lot Owner on whose Lot the trees were removed shall, at the discretion of the ACC, replace the trees with landscaping or other planting of equivalent value or pay to the Association a fine in an amount equal to the value of the trees removed, as such value is determined by the ACC. The address for submission of plans and specifications to the ACC (which address may be changed from time to time) is as follows: c/o the Property Management Company then currently engaged by the Association. 7 of 15 10/19/2015

8 It shall be the obligation of each Lot Owner to be familiar with the rules, regulations and procedures of the ACC for inspections, plan review and approval and to meet all governmental requirements for permits, licenses and other approvals. CCRs ( Construction Times ) provides: No construction of improvements on any Lots shall be undertaken or conducted on New Years Day, Memorial Day, July 4 Labor Day, Thanksgiving Day, Christmas Day or any Sundays, except for (a) construction activities of Lot Owners when working on their own Lots, (b) emergency situations involving the potential loss, injury or damages to persons or property and (c) as otherwise permitted by the ACC. CCRs ( Occupancy ) provides: No structure or improvement may be temporarily or permanently occupied until the exteriors thereof have been completed. No temporary house, tent, barn or other outbuilding shall be permitted on any Lot at any time except as provided in Section 8.7 hereof and except for temporary structures for social functions as may be permitted by the rules and regulations promulgated by the Board. Tool sheds, dog houses and other similar structures shall be permitted on any Lot; provided, however, that such structures, shall not be visible from the Common Property, streets or the Golf Course Property. VI. CCRs 10.3 ( Vacant Lots ) provides: MINIMUM STANDARDS FOR MAINTENANCE OF LOTS It is the intent of these restrictions that vacant Lots be maintained in a reasonably presentable condition. Therefore, the Association shall have the right at all times to enter upon any Lot or building site that is vacant and unplanted or untenanted by the Lot Owner, after reasonable notice to the Lot Owner, to remove debris, weeds or other waste material and to trim cut back, remove if damaged or dead, cultivate and/or maintain hedges, trees, shrubs, plants or lawns and to charge the expense thereof to the Lot Owner pursuant to Section 6.4 hereof. The Association shall have the rights with respect to such assessment as set forth in Article VI hereof concerning assessments. CCRs ( Developed Lots ) provides: Each Lot Owner of a developed Lot shall be obligated to maintain in clean, attractive condition the area of the road right-of-way lying between the front boundary of the Lot Owner's Lot and the paved surface of the road. Each Lot Owner of a developed Lot shall maintain said Lot and the adjoining unpaved portion of the road rightof-way free of rubbish, inoperable vehicles or appliances or other trash, and shall keep the buildings thereon painted and the lawn mowed. If the Association concludes that this Section is being violated, it shall give such Lot Owner thirty (30) days notice of the alleged failure to properly maintain said Lot. If the Lot Owner does not correct the maintenance within thirty (30) days of the date of the notice, the Association may enter the Lot and perform the necessary maintenance and charge the expense thereof to the Lot Owner whether or not the Lot Owner is a Member with such charge to be an assessment to be collected in the manner provided in Section 6.4 hereof. 1. Developed lots shall be maintained to a level equal to or better than undeveloped lots, such that debris, weeds, damaged or dead plants or other waste material shall be removed, and hedges, trees, shrubs, plants, and lawns shall be trimmed and cut back. CCRs ( Lot Owner's Obligation to Maintain Landscaping ) provides: 8 of 15 10/19/2015

9 Where the Association has permitted a Lot owner to plant a portion of the Common Property abutting the Lot Owner's property in accordance with the Lot Owner's landscaping design, the Lot Owner shall be obligated to maintain the landscaping at his or her own expense. Failure of the Lot Owner to maintain the landscaping of such portion of the Common Property or parking bays thereon shall give the Association a right upon reasonable notice to the Lot Owner to maintain such areas of the Common Property and to charge the expense thereof to the Lot Owner whether or not the Lot Owner is a Member with such charge to be as an assessment to be collected in the manner provided in Section 6.4 hereof. CCRs 8.10 ("Signs") provides: VII. SIGNS No sign of any kind shall be displayed to the public view on or from any lot or the Common Property without the approval of the Board except one (1) for sale", "for lease" or "for exchange " sign not to exceed five (5) square feet in size on any lot. All signs permitted under this Section 8.10 shall conform, with all applicable governmental regulations. 1. Lot owners on the golf course may position one additional such sign so that it faces golf course property adjacent to their lot. 2. In conformance with governmental regulations, election signs are permitted on any lot prior to an election provided that such signs are not displayed more than sixty (60) days prior to an election and are removed within 24 hrs. after the election has taken place. 3. Display flags such as national flags or banners, athletic team flags or banners, or holiday flags or banners are permissible. 4. Solicitation, contractor, and vendor signs and permanent or semi-permanent real estate for-sale, rental, signs giving direction to homes for sale or rent, or similar signs are not permitted on any lot or any Common Property; provided that real estate open house signs may be displayed during open house hours if such signs are picked up and removed promptly following, and on that same day of, the open house. 5. The Association may, without prior notice, remove and dispose of any signs not in conformance with the provisions of this Article. CCRs 8.15 ("Garage. Yard Sales") provides: VIII. GARAGE, YARD SALES No lot owner shall hold or permit to be held any garage, yard, or similar sale on any lot except during such periods of time the Board or Board appointed committee, may establish to be responsible for such sales. The Board or the responsible committee shall set time periods during which garage or yard sales may be held; provided, however, that there shall be no more than two (2) such periods each calendar year and each period shall not exceed four (4) days. 9 of 15 10/19/2015

10 1. Merchandise for sale shall not be displayed and tables and paraphernalia related to the sale shall not be set up so as to be visible from the street earlier than 24 hours before the scheduled commencement of the sale (in accordance with dates established by GCCA). All sale items, tables and other sale paraphernalia shall be put away so as to no longer be visible from the street or neighboring properties not later than 24 hours following the scheduled final date of the sale (in accordance with dates established by GCCA). IX. RESIDENTIAL BUSINESSES CCRs 8.16 ("Residential Businesses") provides: No lot owner or tenant shall use or permit the use of any lot for the purpose of a retail, or service business if the nature of such business will result in additional traffic in Gleneagle CC. CCRs 5.5 ("Delegations of Use") provides: X. DELEGATIONS OF USE In accordance with the Bylaws, any member may delegate his or her right to the enjoyment of the Common Property to persons in his or her immediate family currently residing with him or her and his or her tenants. If a member delegates his or her rights to a tenant, only the tenant and tenant's immediate family currently residing with him or her, and not the member, shall have the right to the enjoyment of the Common Property for the duration of the tenancy, any delegation of rights to a tenant must be in writing and signed by both the member and the tenant with a copy provided to the Association's Secretary. The Association reserves the right to limit the number of guests of members and tenants on the Association's Common Property. XI. NOTICES CCRs 15.9 ("Notices") provides: Any notice, permitted, or required to be delivered as provided herein shall be in writing and may be delivered either personally or by mail. If delivery is made by registered or certified mail, it shall be deemed to have been delivered forty eight (48) hours after a copy of the same has been deposited in the United States mail, postage prepaid, addressed to any person at the address given by such person to the Association for the purpose of service of such notice or to the address of the Lot owned by such person if no address has been given to the Association. If such notice is not sent by regular mail, it shall, be deemed to have been delivered when received. Such address may be changed from time to time, by notice in writing to the Association. 1. Notices regarding violations committed by tenants or guests of tenants will be sent to the Lot Owner who will be assessed any penalties/fines that are associated with the violations. 2. A Compliance Officer personally delivering a notice shall ask for a signature from the member/owner or tenant verifying that the notice has been received. If unable to obtain such a signature, the Compliance Officer will follow the procedures for delivery by mail outlined in CCRs The following Rule(s) and Regulation(s) have been adopted: XII. VIOLATIONS AND INVESTIGATIONS 10 of 15 10/19/2015

11 1. Compliance Officers. There shall be two (2) compliance officers: the Association Manager and a member of the Association. The Board shall select the Association member within ten (10) days following each annual meeting during its election of Board Officers. 2. Duty of Investigation: It shall be the duty of the compliance officers, either jointly or individually, to conduct a reasonable investigation whenever there is reason to believe that a violation of these Rules and Regulations and/or the Covenants has occurred or is occurring. 3. Good Faith Resolution Agreements: The compliance officers, or either of them, shall make a minimum of one attempt to contact the member under investigation to determine if a simple good faith resolution of a violation is possible. This attempt may be made in person, by certified U.S. mail or by other reasonable method of communication. A good faith resolution of a violation will require the member to acknowledge that he/she is aware of the violation and will promptly resolve the issue or issues causing the violation. All such good faith resolution agreements shall include a plan and timeline for resolving the violation and, if requested by the compliance officer, shall be put in writing and signed by the member so agreeing. 4. Notice of Violation: If (1) an attempt to contact a member to determine if a good faith resolution proves to be unsuccessful, or (2) if the no good faith resolution is reached or (3) if the member refuses to sign a written statement of the good faith resolution agreement terms upon request, or (4) if a member fails to comply with the terms of an agreed-upon good faith resolution, the investigating compliance officer shall issue a Notice of Violation. The Notice of Violation will be issued in the form of Exhibit 1, a copy of which is attached and by reference is incorporated herein. 5. Repeat Violations: Whenever a member commits a repeat violation of the same type within one year of a previous violation by that member, a Notice of Violation shall be issued in the form of Exhibit 1, a copy of which is attached and by reference is incorporated herein. With respect to all repeat violations falling under XV (1) below the penalty assessment amount per the schedule below will be accelerated so that the first week s penalty amount will be increased to coincide with the amount of the second s week s penalty amount, the second week s penalty amount will be increased to coincide with the amount of the third week s penalty amount and so on. The assessment of these larger repeat violation penalty amounts with respect to violations subject to XV (1) below shall also commence immediately without any initial grace period being provided. XIII. CONTESTING A NOTICE OF VIOLATION The following Rule(s) and Regulation(s) have been adopted: 1. Any lot owner wishing to contest the allegations of a Notice of Violation must apply to the Board in writing for a hearing within fourteen (14) days from the date on which the Notice of Violation is mailed (or delivered if not mailed). 2. In the absence of a timely request for a hearing, the lot owner shall be deemed to be in default, and the applicable penalties set forth in below in Article XV of these Regulations shall be enforced. 3. If a hearing is requested within the time frame specified, the Board shall conduct a hearing after giving the lot owner not less than ten (10) days prior written notice of the date and time of the hearing. 4. The evidence in support of the violation shall be presented first and shall be presented by or under the supervision of a compliance officer. Rules of evidence governing formal legal proceedings shall not apply to the hearing. The Board shall consider relevant testimony of witnesses whether presented in person or by signed 11 of 15 10/19/2015

12 written statements. The Board may consider photographs, videotapes, written documents, and any other form of tangible evidence. In deciding whether a violation has been established, the Board shall give the evidence presented such weight as it determines appropriate. The violation shall be deemed proven if the Board makes a good faith determination that it is more probable than not that the violation occurred. The Board shall indicate in writing whether or not the allegation(s) contained in the Notice of Violation has/have been proven and, if proven, the penalty amount to be assessed. The following Rule(s) and Regulation(s) have been adopted: 1. Assessment, Against Owner's Lot: XIV. PENALTY ASSESSMENTS Regardless of whether the violation is established by hearing or by default, the penalty assessed shall constitute an assessment against the owner's lot until paid. Pursuant to the applicable CCRs, the assessment, together with interest thereon and costs of collection thereof (including reasonable attorney's fees and legal expenses), shall be a charge on the lot and shall be a continuing lien on the lot. The assessment, together with interest, late charges and costs of collection thereof (including reasonable attorney's fees and legal expenses) shall in addition become the personal obligation of the lot owner as of the time the penalty assessment is made by the Board. The following Rule(s) and Regulation(s) have been adopted: XV. GENERAL PENALTIES 1. General Penalty Schedule. Pursuant to the CCRs, the Board hereby adopts a system of general penalties, which are enforceable as assessments. Penalties assessed under this schedule shall be as follows: TWENTY- FIVE AND 00/100 DOLLARS ($25.00) if the violation is not resolved within the grace period specified in the Notice of Violation. Depending on the nature of the violation, (except in the case of a repeat violation as referenced above), grace periods will be one (1) one week, forty-eight (48) hours, or twenty-four (24) hours. The length of the grace period given, to take care of the violation will be determined by the compliance officer(s), and the good faith decision of the compliance officer(s) in this regard shall be final. For each additional week of continuing violation, the penalty applicable during such week doubles, except the maximum penalty of violation shall be FIVE HUNDRED AND 00/100 DOLLARS, ($500.00) per/week. Note that weekly penalties are cumulative (e.g. cumulative penalty after third week is $175.00). Any assessment not paid within thirty, (30) days after first due shall be delinquent. See Article XVI of these Rules and Regulations regarding delinquent assessments. The schedule of penalties is as follows: [ Following Issuance of Notice of Violation Penalty During Grace Period $ 0.00 First Week after grace period expires $25.00 Second Week $50.00 Third Week $ Fourth Week $ Fifth Week $ Sixth Week $ Each Succeeding Week $ of 15 10/19/2015

13 The penalties stated above shall apply to each violation of a duty imposed by the CCRs and/or these Rules and Regulations. 2. Exceptions to General Penalty Schedule. The following specific penalty schedules shall be applied to the following specific types of violations. 2.1 Garage Sales: Given the short-term nature of garage sales, the standard notification and penalty schedule is impractical. Therefore, anyone found in violation of regulations (or CCR provisions) regarding garage sales shall be notified verbally in person by any member of the Board or a compliance officer and fined according to the following schedule without grace period: First Offense in a 12 Month Period $ Second Offense in a 12 Month Period $ Third Offense in a 12 Month Period $ Each Offense Thereafter in a 12 Month Period $ Parking, Storage & Vehicle Repair Violations. Any member of GCCA found in violation of Article III above ( Storage of Items and Parking ) by reason of the conduct of either that member or that member s family, guest, tenant or tenant s guest: (a) (b) Shall be promptly given personal verbal notification of the violation if reasonably possible by a member of the Board or a compliance officer and The member shall additionally be given notification in writing by the Board or a compliance officer. Notice may be transmitted to the member in accordance with the provisions of Article XI above. All such violations shall result in the levy of a fine against the GCCA member according to the following schedule without grace period: First Offense in a 12-Month Period $ Second Offense in a 12-Month Period $ Third Offense in a 12-Month Period $ Each Offense Thereafter in a 12 Month Period $ A violation assessment under this section shall additionally include the towing expense incurred by the GCCA, if applicable. 2.3 ACC Violations: The Board of Directors has adopted the following fine schedule applicable to members who themselves or through others commence construction or installation without an ACC-approved plan if approval is required under the GCCA CCRs, and/or Rules and Regulations. Such fines shall be imposed by the Board of Directors and shall be supplemental to, and not in derogation of, all other legal rights and remedies the GCCA may have under the CCRs, GCCA Rules and state law generally with respect to such failure to obtain prior approval. (a) Installation of unapproved roof $3,000 (b) Installation of unapproved siding $3,000 (c) Unapproved painting of house $2,000 (d) Installation of unapproved shed or shed roofing material $ 500 The fines in (a) - (d) are in addition to the $250 fine for proceeding without an ACC approval. 13 of 15 10/19/2015

14 2.4 Fireworks Violations. Members subject to fines for Fireworks violations per II (3) above shall be fined according to the following schedule without grace period: First Offense in a 12-Month Period $ Second Offense in a 12-Month Period $ Third Offense in a 12-Month Period $ Each Offense Thereafter in a 12 Month Period $ XVI. DELINQUENT ASSESSMENTS The following Rule(s) and Regulation(s) have been adopted (See CCRs 4.13, 6.4, 6.5, 14.1, 14.2 and 15.10): 1. Any assessment levied under the GCCA Rules and Regulations for violations not paid within thirty, (30) days after first due shall be considered delinquent. The GCCA shall notify the member in writing, and the GCCA may bring an action at law against the person personally obligated to pay the assessment and/or foreclose the lien against the member s GCC lot or unit. Interest, legal (and other reasonable) costs, including reasonable attorney fees regardless of whether a lawsuit if filed, relating to any such action shall be added to the amount of the assessment, and all such sums shall be included in any judgment or decree entered in a resulting legal action. Such recoverable expenses may include, but way of illustration only, attorney charges for letters regarding the unpaid assessment amount, attorney charges for drafting and recording liens, county recording fees, title report charges, attorney charges for lien releases, lien release recording fees, costs of collection charged by non-attorneys and expenses incurred in litigation. XVII. CERTIFICATION These Rules & Regulations were UNANIMOUSLY APPROVED by the GCCA BOARD This 20 day of Nov in the year 2015 Board Member Board Member Board Member Board Member Board Member Board Member 14 of 15 10/19/2015

15 NOTICE OF VIOLATION OF RESTRICTIVE COVENANTS OR RULES AND REGULATIONS OF GLENEAGLE COUNTRY CLUB TO: OWNERS NAME FROM: Compliance Officer LOT NO: OWNED BY: DATE(S) OF VIOLATION: FACTS ON WHICH VIOLATION(S) IS/ARE BASED: RULE(S) OR REGULATION(S) VIOLATED: If you cure the violation within thirty (30) days of the date of mailing, which is set forth below, there will be no monetary penalty. If the violation continues more than thirty days from the said date of mailing, the penalty will be $25.00, for each additional week of continuing violation, the penalty doubles, but not to exceed $ If more than one (1) Rule or Regulation is being violated, a separate penalty will be imposed for each violation. If you wish to contest the violation or penalty, you must apply to the Board in writing for a hearing within fourteen (14) days of the date of mailing. In the absence of a request for hearing, a penalty will be assessed against the Lot Owner, personally, and shall also be an assessment against the above, identified Lot. A copy of the Association's Rules, Regulations, Penalties and Enforcement Procedures is enclosed. DATE OF MAILING: Compliance Officer 15 of 15 10/19/2015

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