FIRST AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR OAK HILLS III. A Condominium Project. Tract No

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1 Building Requested By: Calprop Corporation 2436 FIRST AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR OAK HILLS III A Condominium Project Tract No THIS FIRST AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR OAK HILLS III. A condominium Project, Tract No (hereinafter referred to as Declaration ) is made by CALPROP CORPORATION, a California corporation (hereinafter referred to as Declarant ). R E C I T A L S A. Declarant has caused that certain Declaration to be recorded in the Official Records of Los Angeles County, California, as Instrument Ma, 7B B. Declarant is the owner of all of the real properly affected by the Declaration. C. Declarant desires to amend the Declaration as hereinafter at forth. WHEREFORE, said Declaration is hereby amended as follows: 1. The title of said Declaration shall read as follows: DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR OAKS III A Condominium Project Tract No

2 2. Article 1, Paragraph C, shall read as follows: Regulation, shall mean Oaks III Homeowners Association, a California corporation (the members of which shall be all of the Condominium Owners within the Project, including Declarant with respect to any retained or unsold Condominium) or its necessary or resigns, whether by way of merger, consolidation, transfer or otherwise, which entity shall have the duty of maintaining, repairing, operating, managing and administrating the Common Area of the Project in the manner to the extent provided in the Condominium Documents. The Association shall include, when the context requires, its Board of Directors, officers, agents and duty authorized representatives, as the same, or any of them, may from time to time be constituted. The Association, acting alone or through its Board of Directors, officers, managers or any duty authorized representatives shall constitute the management body within the meaning of Section 1355 of the California Civil Code. 3. Article 4, Paragraph A, shall read as follows: A. Managing Body. Oaks III Homeowners Association, a California corporation, shall be the Association and the management body of the Project. 4. Except as hereby amended, the Declaration is hereby ratified. IN WITNESS WHEREOF, this instrument has been executed this 9 th day of January, 1979.

3 DECLARATION OF CONVENANTS, CONDITIONS AND RESTRICTIONS FOR OAK HILLS III A Condominium Project Tract No Index of Articles 1. DEFITIONS DESCRIPTION USE RESTRICTIONS ASSOCIATION TRANSFER OF MANAGEMENT AND CONTROL TO ASSOCIATION.. 6. MANAGEMENT ASSESSMENTS; COMMON FUNDS MAINTENANCE OF FUNDS COLLECTED; LIENS; ENFORCEMENT.. 9. OBLIGATION OF OWNERS NO PUBLIC RIGHTS IN THE PROJECT PROTECTION OF LENDERS SUSPENSION OF RIGHT OF PARTITION PROTECTION AGAINST SEVERANCE OF COMPONENT INTERESTS IN CONDOMINIUMS INSURANCE DAMAGE OR DESTRUCTION; REBUILDING CONDEMNATION BREACH OR DEFAULT BY CONDOMINIUM OWNERS AMENDMENT INTERPRETATION TERM OF DECLARATION; ROLE AGAINST PERPETUETTES MISCELLANEOUS

4 TELLS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (hereinafter referred to as the Declaration ) is made by CALPROP CORPORATION, a corporation (hereinafter referred to as Declarant ), with reference to the following. A. Declarant is the owner of that certain real property (hereinafter referred to as the Real Property ) described as Lot 1 of Tract as per map recorded on November 30, 1978 in the Office of the Los Angeles County Recorder in Book 906, pages 21 and 22 of Maps. B. There is located on grid Real Property a two hundred twelve (22) unit condominium project. Said two hundred twelve (212)-unit condominium projected and Real Property are hereinafter collectively referred to as the Project. C. The Declarant has caused a certain Condominium Plan (hereinafter referred to as Condominium Plan ) to be recorded in the Office of the Los Angeles County Recorder as Instrument No Declarant intends to sell condominiums Located on the Project. D. It is the intention of Declarant that Declarant shall sell and convey interests in the Project to various persons, firms, corporations and other associations (hereinafter referred to as Owners ), subject to certain protective covenants, conditions, restrictions, limitations, reservations, grants of statements, rights, rights-of-way, liens, charges and equitable services between Declarant and such Owners, all of which covenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges and equitable servitudes and set forth in this Declaration and are hereby declared, expressed, agreed and intended (i) to be in fur

5 clearance of a plan for the sale and use of the Project as a condominium and (ii) to benefit the Project and the Owners of the condominium located therein and their successors and assigns. NOW, THEREFORE, Declarant hereby declares that the Real Property improvements, appearances and facilities described herein as shown on the Condominium Plan recorded in connection with this Project in the Office of the County Recorder of Los Angeles County, State of California, shall be held, conveyed, divided, co cumbered, hypothecated, leased, rented, used, occupied and improved only upon and subject to the certain DECLARATION AND ESTABLISHMENT OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATIONS FOR TRACT NO (hereinafter referred to as Tract Declaration ) recorded in the Official Records of Los Angeles County, California, as Instrument No in Book M-3522, page 916, and the following uniform covenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges and equitable servitudes, all of which are hereby declared, established, expressed, and agree (i) to be in furtherance of a plan for the subdivision and sale of individual Condominiums in a condominium Project as defined in Section 1350 of the California Civil Code, (ii) to be for the benefit and protection of the Project, its desirability, value and attractions, (iii) to be for the benefit of the Owners of Condominiums in the Project, (iv) to run with the land and be binding upon all parties having or acquiring any right, title or interest in the Project or any portion thereof, (v) to inure to the benefit of every portion of the Project and any interest therein, and (vi) to inure to the benefit of and be binding upon each successor and assigned in

6 interest of each Owner and of Declarant. Any conveyance, transfer, sale, assignment, lease or sublease made by Declarant or by the Association (as hereinafter defined) of a Condominium in the Project will and hereby is deemed to incorporate by reference the provisions of this Declaration, including but not limited to the covenants, conditions, restrictions, limitations, grants of easements, rights, rights-of-way, liens, charges and equitable servitudes contained herein. The provisions of this Declaration shall be enforceable by Declarant, any Owner, or its or his successor in interest shall also be enforceable by the Association, its Board of Directors or any person, firm, corporation or other associations duty authorized by the Association or its Board of Directors to enforce all of any one or more of the provisions hereof. ARTICLE 1 DEFINITIONS In addition to the definitions hereinbefore set forth, the following words or phrases when used in this Declaration (except when the context otherwise requires) shall have the following definitions: A. Approval of Consent shall mean securing the prior written approval or consent as required herein before doing, making or suffering that for which such approval or consent is required. B. Assessment shall mean an Assessment, whether Regular or Special, levied, charged or assessed against an Owner and/or his Condominium in accordance with the provisions of this Declaration and shall become a debt of such Owner and deemed to have been made within the meaning of Section 1356 of the California Civil

7 Code when such Assessment is entered upon the assessment roll described to this Declaration and notice thereof has been mailed to the Owner of the Condominium so assessed. C. Association shall mean Oak Hills III Homeowners Association, a California corporation (the members of which shall be all of the Condominium Owners within the Project, including Declarant with respect to any retained or unsold Condominium) or its successors or assigns, whether by way of merger, consolidation, transfer or otherwise, which entity shall have the duty of maintaining, repairing, operating, managing and administering the Common Area of the Project in the manner and to the extent provided in the Condominium Documents. The Association shall include, when the context requires, its Board of Directors, officers, agents and duty authorized representatives as the same, or any of them, may from time to time be constituted. The Association, acting alone or through its Board of Directors, officers, managers or any duty authorized representative shall constitute the management body within the meaning of Section 1355 of the California Civil Code. D. Board, Board of Directors or Initial Board of Directors may be used interchangeably herein and shall mean the Board of Directors of the Association as the same may from time to time be constituted. E. Building shall mean building or structure located on the Real Property. F. Bylaws shall mean the duty adopted Bylaws of the Association, as the same may from time to time be amended. G. Common Area shall mean the entire Project (i) excepting all of the Unites therein conveyed or reserved and (ii)

8 subject to all easements and rights of use for parking, storage and construction described in Articles 2 and 3 of this Declaration and described in the document of conveyance through which each Owner acquires his Condominium. Without limiting the foregoing but subject hereto, the Common Area shall include, but shall not be limited to, the Real Property, all bearing walls, columns, floors (as distinguished from the unfinished surface thereof located within any Unit), roofs, foundations, elevator equipment and shafts, central heating, central refrigeration and central air-conditioning equipment, reservoirs, tanks, pumps and other central service pipes, ducts, flues, chutes, conduits, wires, sprinkler systems and other utility installations, wherever located (except outlets thereof located within a Unit), and shall also include all parking facilities and ramps, yards, gardens, planters, fountains, swimming pool and facilities and all other recreational or community facilities, those storage areas, and compartments not located within Units and driveway areas, all compressors and control equipment serving Common Area as distinguished form those compressors and control equipment serving individual Units, ad other parts, apparatus and installations existing in any Building necessary or convenient to the existence, maintenance or safety of the Project as a whole. Individual water heating, air-conditioning compressors, heating equipment, tanks and other equipment serving any individual Unit (as distinguished from any Common Area room, compartment or closet which opens onto a Common Area and contains such compressors, tanks and equipment) shall not constitute part of the Common Area, but shall constitute a part of the Unit or Units served thereby.

9 H. Common Expense shall mean any use of Common Funds authorized by this Declaration and shall include all expenses or charges by this Declaration and shall include all expenses or charges for the administration, insurance, maintenance, personnel, operation, repairs, additions, alterations or reconstruction of Common Area within the Project as the same may be estimated from time to time by the Association and/or its Board of Directors, including but not limited to any amounts reasonably necessary for reserves, contingencies and the service obligations of the Association as hereinafter set forth. I. Common Funds shall mean all funds collected or received by and/or due and payable to the Association, its Board of Directors, officers, Manager or any of its duty authorized representatives for use in the administration, operation, maintenance, repair, additions, alterations or reconstruction of all or any portion of the Common Area, including but not limited to the proceeds from insurance carried or obtained by the Association which are payable to or received by the Association as trustee for the benefit of the Owners or otherwise. J. Component Interest or Component Part may be used interchangeably herein and shall mean the combination of an Owner s ownership in his Unit together with his Percentage Interest of the Common Area. K. Condominium shall mean a condominium, as defined in Section 783 of the California Civil Code, located within the Project and shall be an estate in real property consisting of (i) a separate fee estate in the air space and interior unfinished surfaces within a Unit, as more particularly described in the Condominium Plan, (ii) an undivided Percentage Interest as a

10 tenant-in-common of the Common Area, (iii) an exclusive easement and right to use, for parking purposes only a parking stall or stalls as the parking stalls are shown on Condominium Map, and (iv) a nonexclusive easement appurtenant to each Unit for ingress, egress and support over, across and through the Common Area. L. Condominium Documents shall mean only this Declaration, the Articles of Incorporation, the Bylaws, the Condominium Plan and such other written documents, reports, maps, schedules and exhibits as are required by law to be recorded, filed or issued in connection with the subdivision, conversion, and regulation of the Project as a condominium project and shall be deemed to include both the preliminary subdivision public report and the final subdivision public report for the Project. M. Declarant shall mean Calprop Corporation and its successors and assigns. N. Mortgage shall mean any security device encumbering all or any portion of the Project or any Condominium located therein as used herein the term Mortgage shall include a deed of trust. o. Mortgagee shall mean the record owner of a beneficial interest under a Mortgage. P. Organization Meeting shall mean the first meeting of the Board of Directors at which the officers of the Association shall be elected by the Board. Q. Owner, Unit Owner, Condominium Owner may be used interchangeably herein and shall mean any person, firm, corporation or other association which owns a Condominium and shall include (except when the context otherwise requires) the

11 family (and each member thereof), guests, tenants, servants, employees and invitees of such Owner. A Record Owner, Owner of Record or Member of the Association shall include an Owner and may be used interchangeably herein and shall mean any person, firm, corporation or other association in which title to a Condominium is vested, as shown by the Official Records of the Office of the County Recorder of Los Angeles County, State of California, Declarant shall be deemed the Record owner of all unsold or retained Condominiums until Declarant or its successor or assigns shall have executed and caused to be recorded in the Office of the County Recorder of Los Angeles County, State of California, an instrument of conveyance conveying the respective Condominium. As used herein the word family shall mean persons related by blood or marriage. R. Personal Property or Personal Property of the Association may be used interchangeably herein and shall mean all tangible and intangible personal property located in the Common Area or which shall be acquired, owned, held or controlled by the Association for the use, benefit and enjoyment of the Condominium Owners as a whole and any replacements, substitutions or additions thereto. No Owner shall have a Percentage Interest in the Personal Property of the Association, and the transfer of a Condominium to an Owner shall not transfer to him any proprietary interest therein. S. Percentage Interest or Fractional Interest may be used interchangeably herein and shall mean a 1/212th interest in the Common Area. T. Person shall mean a natural personal, corporation, partnership, association or firm and shall include (except where

12 the context otherwise requires) an Owner, the Association, each member of its Board, each of its officers and any Mortgagee. U. Regular Assessment shall mean an assessment duty made and levied against a Condominium Owner and/or his Condominium for repairs, maintenance, management and operation of the Project or otherwise in accordance with Article 7 hereof. W. Unit shall mean the element of a Condominium which is not owned in common with the Owners of other Condominiums.

13 ARTICLE DESCRIPTION OF PROPERTY AND INTEREST THEREIN A. Subdivision Map; Condominium Plan. The Real Property includes all that real property more particularly described as Area and Restricted Common Areas of the Project as more particularly shown and defined on the Condominium Plan. B. Interest In Common Area. In addition to the Unit, each Owner shall receive in his instrument of conveyance from Declarant a Percentage Interest in the Common Area. Subject to the provisions hereof, every Owner shall have a right of easement and enjoyment in and to the Common Area subject to: (1) The right of the Association to suspend the voting rights and right to use any recreational facility situated on the Common Area; (2) The right of the Association to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for such purposes; provided, however, that no such dedication or transfer shall be effective unless an instrument agreeing to such dedication or transfer signed by twothirds (2/3) of each class of members has been recorded in the Office of the County Recorder of Los Angeles County. C. Easement For Ingress, Egress, Support. Each Owner shall receive as an incident of the conveyance of his Condominium, whether or not separately described, a nonexclusive easement, appurtenant to the Unit included in said conveyance, for ingress, egress and support over, across and through the Common Area and every portion of any Unit within the Project required for the structural support of any Building within which said Condominium Unit is located.

14 D. Parking Area: Exclusive Easement and Right To Use. Each Owner shall receive in his instrument of conveyance an exclusive easement and right to use for parking purposes only, subject to the provisions hereof, at least on (1) parking stall located in the Common Area. E. Apportionment Of Taxes. It is contemplated that real estate taxes are to be individually assessed to each Owner for his Condominium. In the event that for any year any of such taxes are not assessed individually, each Owner stall pay 1/212th of the total taxes assessed no later than fifteen (15) days prior to the date when the payment of any installment of such taxes would become delinquent. ARTICLE 3 USE RESTRICTIONS A. Temporary Use By Declarant. Except for (1) such temporary use by Declarant, its agents and employees, as is reasonably necessary to facilitate and complete (a) the improvement and sale of the Units, (b) the construction, excavation, grading and/or completion of the Project, (c) the maintenance and operation for sales purposes of at least five (5) model Units, (d) the showing of the Project and any unsold Units therein, (e) the reasonable display of signs and id of the sale of any unsold Units, (f) the maintenance and operation of a fully staffed sales office complex in the Project, (g) the use of such parking and storage space as may be required co facilitate the sale of all Units by Declarant to third persons, and (2) the permanent use by the Association, its Board of Directors, officers, employees and agents of all areas and space, including parking, storage and office areas and space reasonably necessary

15 for use in connection with the operation and maintenance of the Project, the Units, Common Area, and any Personal Property of the Association shall be occupied and used only as provided herein. B. Residential. No Owner shall occupy or use his Unit, or permit the same or any portion thereof to be occupied or used for any purposes other than a private residence for such Owner and his family, their guests, invitees, licensees or tenants. C. Interior Of Units. Each Owner shall maintain in good repair the interiors of his Unit. Subject to the provisions Paragraph 9 hereof, each Owner shall have the exclusive right to paint, repaint, tile, wax, paper or otherwise furnish and decorate the interior surfaces of the walls, partitions, ceilings, floors, windows and doors within his Unit. D. Insurance. Nothing shall be done or kept in or on any Unit or Common Area which will increase the rate of insurance in or on any other Unit or Common Area. No Owner shall permit anything to be done or kept in his Unit or in any Common Area or in or on any portion thereof with respect to which he has an easement or right of exclusive use, which would result to the uninsurability, cancellation, suspension, modification or reflection of insurance in, on or covering any other Unit, Common Area or item of Personal Property within the Project. If, by reason of the occupancy or use of any Unit or Common Area by any Owner, the rare of insurance on all or any portion of the Project shall be increased, such Owner shall become personally liable to the Association for any increase in insurance premiums caused thereby in accordance with Paragraph B of Article 7 of this Declaration.

16 F. Structural. Nothing shall be done in, on or to any Unit or Common Area which will impact this structural integrity of any Building or any portion thereof. G. Alteration and Declaration of Common Area. Subject to the provisions of Paragraphs A and D hereof, no Owner shall, whether at his own expense or otherwise, do, make or suffer any alteration, addition or modification to any portion of the Common Area, nor shall be install, attach, paste, binge, screw, nail, build or construct any lighting, decoration or other article or thing thereto, without the Approval of the Association. H. Signs. No sign, notice, nameplate, card or advertisement of any kind shall be displayed to the public view on or from any Unit or any Common Area, without the Approval of the Association, provided that a sign of customary and reasonable dimensions advertising the sale or rental of a Unit, which sign is of a professional type and dignified appearance, may be placed in such location in the Common Area as designated by the Association, and open to public view. The Association shall provide appropriately corked facility for the receipt of mail and packages. I. Electrical Wiring and Equipment. No Owner shall install, attach or hung or cause to be installed, attached or hung any equipment or wiring for electrical installation, television or radio transmitting or receiving antenna, machines or airconditioning units or other like equipment or wiring in or on any portion of the Common Area or this protrude (the any Unit or through any Common Area wall, floor, ceiling, window or door, except if approved by the Association. All radio, television, air-conditioning units, or other electrical equipment or appliances of any kind or occurs or wiring therefore installed or

17 used in a Unit shall fully comply with all rules, regulations and requirements of all state and local public authorization having jurisdiction over same, and the Unit Owner atop: shall be liable for any damage or injury caused by any such radio, television or other electrical equipment or appliance installed or used in his Unit. Normal radio, stereo, high fidelity and television installation within a Unit are accepted. J. Nuisance. No noxious, offensive or illegal activity shall be carried on, nor shall anything be done or placed in or on any Unit or in or on any portion of the Common Area, which is or any become a nuisance, or cause reasonable embarrassment, disturbance or annoyance to other Owners in the use and enjoyment of their property or in the use and enjoyment of the Common Area. Without limiting the following, no torca, whistles, bells or any other sound devices, except security devices approved for use by the Association which are used exclusively to peacact persons or property located in or on the Project, shall be placed in or used in or upon any portion of the Project. This paragraph shall not preclude the use and operation of stereo, radios, televisions or musical instruments where the volume is sustained at a reasonable level. K. Compliance with Law. Each Owner shall promptly and fully comply with any and all applicable laws, rules, ordinances, statues, regulations and regalements of any governmental agency or authority with ceopees to the occupancy and use of his Condominium. L. Pets. No birds, reptile or animal of any kind shall be raised, bred or kept in any Unit, or in any Common Area, except that dogs, cats and other domestic household pets may (with

18 Approval of the Association) be kept in a Unit and may portion of the Common Area designated therefore by the Association, provided that no bird, reptile or animal of any kind shall be kept, bred or maintained (i) for any commercial purpose, (ii) in unreasonable number, or (iii) for any purpose if there would be involved an odor or noise such as would unreasonably disturb the use and enjoyment of any portion of the Project by other Owners. The Owner of any pet shall and case hereby identify the Association, its Board of Directors, officers, the Managers and/or his staff and agrees to hold it and/or each of the harmless from and against any and all long, cost, liability or expense of any kind of character whatsoever arising from growing one of having pets within the Project. Any inconvenience, damage or injury caused by such domestic pet or pets shall be the responsibility or the respective Owner thereof. M. Vehicles. Subject to the provisions of Article 2 hereof, no Owner, nor any member of his family, guests, tenants, agents, licensees or employments shall park or cause to be parked any vehicle in such a manner on to impede or prevent ready access to any entrance or exit of any building, garage or parking facility by one other vehicle. No Owner shall parole any member of his family, guests, tenants, agents, licensees or employees to use any parking stall, the exclusive use of which has been granted to another Owner. No Owner shall construct, repair, service or maintain any motor vehicle within any portion of the Project, except for emergency repairs thereto to the extent necessary for the movement thereof to a proper repair facility. No Owners shall keep, place or maintain any mobile home, trailer of any kind, truck, camper or boat on the Common Area for more then twenty-

19 four (24) consecutive hours or for more than seventy-two (72) hours in any week. N. Laundry. No exterior clothesline shall be excelled or maintained in or on any part of the Common Area. O. Children. Each Owner shall be accountable to the Association and the other Owners for the conduct and behavior of children residing or visiting his Unit, and any damage to any portion of the Common Area, Personal Property of the Association or property of another Owner caused by such children shall be repaired by and at the expense of the Owner with whom said children are residing or visiting. P. Trash; Refuse. No unconcealed trash or rubbish containers or similar items visible from public or private streets, other Units, or the Common Area shall be kept or maintained within the Project. Q. Drilling; Mining Operations. The use of any portion of the surface of the Property for drilling operations, mining or quarrying of any kind, including but not limited to oil well drilling, oil development or mining operations of any kind is hereby and shall be prohibited. R. Settlement or Shifting of Buildings. None of the rights, obligations, easements or restrictions created herein, or by any instrument of conveyance of a Unit, shall be altered in any way by minor enrichments due to settlement or shifting of a Building. S. Delegation of lisa; Contract Purchasers; Tenants. Any Owners may delegate his rights of use and enjoyment in the Project, including any recreational facilities, to the members of his family, his guests, and invitees, and to such other persons as may be permitted by the Bylaws and Association rules, subject,

20 however, to this Declaration, to the Bylaws and to the Association rules. However, if an Owner of a Unit has sold his Unit to a contract purchaser or rented it, the Owners, members of his family, his guests and invitees shall not be entitled to use and enjoy the recreational facilities of the Project while the Owner s Unit is occupied by such contract purchaser or tenant. Instead, the contract purchases or tenant, while occupying such Unit, shall be entitled to use and enjoy the recreational facilities of the Project and car, delegate the rights of use and enjoyment in the same manner as if each contract purchaser or tenant were the owner of such Unit during the period of his occupancy. Each Owner shall notify the secretary of the Association of the names of any contract purchaser or tenant of such Owner s Unit. Each Owner, contract purchaser or tenant also shall notify the secretary of the association of the names of all persons to whom such Owner, contract purchaser or tenant has delegated any rights of use and enjoyment in the development and relationship that each such person bears to the Owner, contract purchaser or tenant. Any delegate rights of use and enjoyment are subject to suspension to the same extent as the rights of Owners are. All leases, rental agreements and contracts of purchase shall be in writing and contain a provision that the terms thereof are subject to the terms and conditions of this Declaration, Bylaws and Association rules, as the same may be from time to time amended. ARTICLE 4 ASSOCIATION

21 A. Managing Body. Oak Hills III Homeowners Association, a California corporation, shall be the Association and the management body of the Project. B. Membership in Association. Each Owner (including Declarant as to any unsold or retained Units) shall automatically, upon becoming an Owner of Record of a Unit become a member of the Association and shall remain a member thereof until he shall cease to be an Owner of Record. C. Transfer Of Membership. The membership of each Owner in the Association is appurtenant and inseparable from his Ownership of a Unit and shall be automatically transferred upon any authorized transfer or conveyance of his Unit to any transferee or grantee and, except as provided herein, said membership shall be non-transferable whether by gift, bequest, devise, assignment or otherwise. D. Voting. The Association shall have two classes of voting membership. Class A. Class A members shall be all Owners, with the exception of the Declarant, and shall be entitled to one (1) vote for each Unit owned. When more than one person holds an interest in any Unit, all such persons shall be members. The vote for such Unit shall be exercised as they determine, but in no event shall more than on (1) vote be cast with respect to any Unit. Class B. The Class B member(s) shall be the Declarant and shall be entitled to three (3) votes for each Unit owned. The Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever seems earlier:

22 (1) When the total votes outstanding in the Class A membership equal the total votes outstanding in the Class A membership, or (2) One (1) year after the issuance of the Final Subdivision Report by the California Department of Real Estate for Tract ARTICLE 5 TRANSFER OF MANAGEMENT AND CONTROL TO ASSOCIATION The management and control of the Common Area and all other common facilities and the Personal Property of the Association, both tangible and intangible, shall be transferred from Declarant to the Association upon the conveyance of cicle of the first Unit to an Owner other than Declarant. ARTICLE 6 MANAGEMENT A. Duties and Powers. This Paragraph A may not be amended or modified without the prior written approval of the City of Montebello, California. For purposes of receipt of the notices by the City of Montebello, as provided in the Tract Declaration, the Anncelation shall be deemed to be the lot owner of the Common Area of the Project, as the term lot owner is used in the Treat Declaration. In addition to the duties and powers commented in its Articles of Incorporation and Bylaws, or elsewhere provided for herein, and within limiting the generality hereof, the Association shall: (1) Maintain and otherwise manage the Common Area and recreational facilities, improvement, including that octain sixty inch (60 ) scorn drain increased on the Project, and landscaping

23 therein, including the enforcement of the terms and conditions of the Condominium Documents; (2) Adopt and publish rules and regulating governing the use of the Common Area and recreational facilities, and the personal cabinet of the members and chair guests thereon, and to establish penalties for the infraction thereof; (3) Suspend the voting rights and right to use of the recreational facilities of an owner during any period in which such member shall be in default in the payment of any assessment levied. Such rights any alen be suspended after notion and locating, for 1 period and to extend thirty (30) days, for infraction of published rules and regulations; (4) Exercise all powers, duties and authority vented in or delegated to the Association and not reserved to the membership by other provision of the Bylaws of the Association, the Articles of Incorporation of the Association or this Declaration; (5) Declare the office of a member of the Board, except an Independent Director as defined in the Bylaws of the Association, to be vacone in the event such serving shall be about from there (9) conservative regular meetings of the Board. (6) Poradinse the lien against any property for which assessments are not paid within thirty (30) days after due date or to bring an action or law against the Owner personality obligated to pay the same; (7) Enter into a contract with public utility companies if the rates charged for the materials or service are regulated by the Public Utilities Commission; provided, however, that the

24 term of the contract shall not expend the shortest term for which the supplies will contract at the regulated rate; (8) Purchases prepaid casunity and/or liability language policies of not to exceed there (3) years duration, provided that the policy pension for ghost rate cancellation by the insured; (9) Pay any rates or assessments which are or could become a lien against the Common Area; (10) Except as provided in subparagraph (7) hereof contract for goods for the Common Area, provided that say contract shall provide that the Association shall have the right to terminate the contract upon thirty (30) days written notice for any breach of said contract by the other party thereto and shall not have a term greater than on (1) year, unless a Management Agreement, the terms of which have been approved by the Federal Housing Administration or Veterans Administration; (11) Obtain a fidelity bond for all members, employees or agents of the Association who handle funds of the Association; (12) Cast the vote appurtenant to the Project in the Slope Area Association provided for in that certain Declaration and Establishment of Covenants, Conditions and Restrictions and Reservations for Tract No recorded in the office of the Los Angeles County Recorder as Instrument No (13) Notwithstanding anything herein contained or contained in the Articles of Incorporation or Bylaws of the Association, the Association shall not, without a vote or assent in writing of a majority of the voting power of the Association, excluding Declarant; (a) Incur aggregate expenditures for capital improvements to the Common Area in any fiscal year in excess of

25 five percent (5%) of the budgeted gross expenses of the Association for that fiscal year; (b) Sell during any fiscal year property of the Association having an aggregate fair market value greater than five percent (5%) of the budgeted gross expenses of the Association for that fiscal year; (c) Pay compensation to members of the governing body or to officers of the Association for services performed in the conduct of the Association s business; provided, however, that the Board of Directors may cause a member or officer to be reimbursed for expenses incurred in carrying on the business of the Association. B. Annual Independent Audit; Examination Of Books. The Association shall cause to be delivered to each Owner a balance sheet as of an accounting date which is the last day of the month closest in time to six (6) months from the date that title to the first Unit has been conveyed to a person other than Declarant, and an operating statement for the period from the date of the conveyance of the first Unit to said accounting date shall be distributed within the sixty (60) days after the accounting date. Said operating statement shall include a schedule of assessments received and receivables identified by the Unit number and the same of the Owner assessed. In addition, an annual audit by an independent certified public accountant made of the accounts and operating statements of the Association, Board of Directors and its officers. Said audit shall reflect the income and expenditures of the Association, its Board of Directors and its officers for the maintenance and operation of the Project for the Association s fiscal year, and include a balance sheet of the

26 Association for such period. A copy of said audit and balance sheet shall be delivered to each Owner within the ninety (90) days after the close of the Association s fiscal year. If any additional audit beyond said annual independent audit is desired by a majority of the Owners, it shall be prepared at the expense of such Owners desiring same. C. Delegation of Powers. The Association or its Board of Directors may delegate any of its duties, powers or functions to any qualified person, corporation or firm to act as Manager. Said Manager may further be authorized to file any notice and take any legal action on behalf of the Owners or the Association, which filing or the taking of such action is within the authority of the Association or its Board of Directors. Neither the Association nor the members of its Board of Directors, nor its officers, shall be liable for any omission or improper exercise by the Manager or his staff of any such duty, power or function so delegated. D. Right Of Entry. The Association, by and through any shall have the right and authority to enter upon and within any Unit, in the presence of the Owner thereof or otherwise, for the purpose of (i) making emergency repairs therein, (ii) performing necessary maintenance or repairs to portions of the Common Area, or (iii) protecting the property rights and welfare of the other Owners. Such right of entry shall be exercised in such a manner as to avoid any unreasonable or unnecessary interference with the possession, use and/or enjoyment of the Owner or occupant of such Unit, and shall be preceded by reasonable notice to the Owner or occupant thereof wherever the circumstances permit.

27 E. Financial Records and Accounts; Inspection. The Secretary and Treasurer and/or such other officers of the Association as may from time to time be designated by the Board of Directors shall keep or cause to be kept detailed records of the actions of the Board of Directors, the officers of the Association, the Managers, his staff, minutes of the meetings of the Board, officers and Owners and financial records and books of account of the Association including a chronological listing all receipts and expenditures of Common Fund, as well as a separate account for each Regular and Special Assessment levied or charged against each Unit or the Owner thereof, the dates when so assessed when the game is due, the amounts paid thereon, and the balance if any, of any Assessments remaining unpaid. Said books and records may be inspected or audited by any Owner or his duty authorized representatives at the Owner s sole expense at all reasonable times. F. Limitations Of Liability. Neither the Declarant (nor its agents or employees) nor the Association, nor its Board of Directors (nor any member thereof), nor its officers (nor any of them) shall be liable for any failure to provide any service or perform any duty, function or responsibility designated or provided in this Declaration or in any other Condominium Document to be performed by the same, or for injury and/or damage to persons or property by the same, or for injury and/or damage to persons or property caused by fire, explosion, the elements or by another Owner or person in the Project or resulting from electricity, water, rain, dust or sand which may leak or flow from outside any Unit or from any part of any Building or from any pipes, drains, conduits, appliances or equipment, or from any

28 other place or cause unless caused by the grass negligence of Declarant, the Association, its Board of Directors or its officers. G. Indemnification. The Association shall and does hereby indemnify the Board of Directors (and each member thereof), the officers of the Association (and each of them), and each of the employees of the Association, against all expenses and liabilities, including attorney s fees, reasonably incurred by such person or persons in connection with any proceedings to which may be a party, by reason of his being or having been a Director, officer or Manager or employee of the Association to the extent not covered by insurance purchased by the Association, except in such cases where he is adjudged guilty of willful misfeasance or malfeasance in the performance of his duties. H. Enforcement Of Bonded Obligations. In the event that the Declarant has posted a bond pursuant to Section (a)(2)a of the California Business and Professional Code to secure the faithful performance for the completion of common facilities and Common Area improvements, and a Notice of Competition for said improvements has not been filed in the Office of the Los Angeles County Recorder within sixty (60) days after the completion date specified for said improvements in the Planned Construction Statement appended to said bond, then the Board at the next regular meeting shall consider and vote on the question of action by the Association to enforce the obligations under the bond with respect to any uncompleted improvement. In the event that the Board grants an extension of time for the completion of said improvements, the Board shall consider and vote on the aforesaid question if a Notice of Completion has not been filed within

29 thirty (30) days after the expiration of the extension. Any extension granted by the Board as herein provided shall be in writing. In the event that the Board fails to consider the question of enforcing said bond as hereinabove provided, or in the event that the Board falls to initiate action to enforce the obligations under the bond, then upon a written petition signed by members holding not less than five percent (5%) of the Class A voting power of the Association, the Board shall cal for a Special Meeting of the members to be held not less than fifteen (15) days nor more than thirty (30) days after receipt by the Board of said petition. In the event that at such meeting member holding not less than a majority of the Class A voting power vote to take action to enforce the obligations under the bond, then said vote shall be deemed to be the decision of the Association, and the Board shall thereupon implement said decision by initiating and pursuing the appropriate action in the name of the Association. ARTICLE 7 ASSESSMENTS; COMMON FUNDS A. Regular Assessment. (1) Estimate. Not less than sixty (60) days prior to the beginning of each fiscal year, the Board shall estimate and prepare a budget for the anticipated Common Expense for the next succeeding fiscal year for the Common Area and facilities of the Project, together with: (i) the cost of extended coverage casualty and liability insurance on all or any portion of the Project and such other insurance as the Association, its Board or officers may purchase pursuant to Article 14 hereof; (ii) expenses for furnishing water, gas, electricity, sewer

30 connections, rubbish and trash collection to the extent the same is furnished by the Association and not separately metered or charged to individual Owners; (iii) all reserves for maintenance, deferred maintenance (which may include funds for maintenance items which occur less frequently than annually) and non-payment of Regular and/or Special Assessments by any Owner, and (iv) the costs and expenses to the Association. (2) Increase In Assessment Estimate. In the event the Association shall determine the estimate of Common expense made by the Board in accordance with Paragraph A hereof is, or will be, for any reason (including non-payment when due of any amounts assessed and charged against any Owner) inadequate to meet all of the Common Expenses of the Project, the Association shall promptly estimate the amount of such inadequacy and cause to be prepared a supplemental estimate to be added to the estimate determined by the Board. The new total determined by said addition shall then be divided, assessed and charged to and against the individual Owner and/or their Condominiums in equal shares. Any Assessment increased by reason of such supplemental estimate may, in the discretion of the Association, be prorated over the remaining months of he Association s fiscal year or treated as a Special Assessment as provided in Paragraph B hereof. (3) Mailing. The Board of Directors shall be cause to be mailed to each Owner (including Declarant with respect to any retained or unsold Unit) at the address of his Unit, a statement of the amount of the Regular Assessment as determined or modified as provided in this Article 7 herein within thirty (30) days after such determination of modification.

31 (4) Failure To Make Estimate. If, for any fiscal year, the Board shall fail to make an estimate of Common Expense as provided hereinabove, then the previous fiscal year s estimate as determined by the Board, together with any increase determined by the Association in the previous year, shall be automatically assessed against each Owner and/or his Unit, and installment payments (as hereinafter provided) based upon such an automatic assessment shall be payable on the regular payment dates established by the Association unless modified by a supplemental estimate determined by the Association. Regular and Special Assessment shall be equally assessed to all Units except for those Special Assessment made pursuant to Paragraph B(2) of this Article. (5) Installment Payment. The Regular Assessment charged and assessed to each Owner shall be due and payable in advance in equal monthly installments o the first day of each month (commencing with the date on which he becomes an Owner and prorated to said date) or at such times and dates or in such other manner as may be established from time to time by the Association. (6) Delinquent Assessments. If any Regular Assessment or Special Assessment (as hereinafter provided) assessed to any Owner is not paid within ten (10) days after the same becomes due, the Association will incur damage expense in connection with the accounting, management and collection of such a delinquent payment and such damage will be in an amount which is impractical to fix. By reason of the impracticality in fixing the actual damage but recognizing the existence of such damage if such a delay in payment should occur, it is hereby agreed that the

32 Association shall have the right to assess, charge and collect from any Owner who shall fail to make a timely payment as provided by this paragraph an amount not to exceed five person (5%) of the unpaid portion of any such assessment payment which amount is hereby agreed to constitute a reasonable estimate of the actual damage that would be sustained by the Association if such a failure of timely payment should occur. (7) Liability For Assessment. Each installment payment of any Regular Assessment and each lump sum or installment payment of any Special Assessment, together with any charge or assessment for delinquent payment as provided by Paragraph A(6) hereof, shall be a separate debt of the Owner against whom the same bas been assessed, and the collection of each and all of such debts may be enforced as provided in Article 8 hereof. Any Person who acquires title to a Condominium (whether as a judicial sale or trustee s sale shall be liable only for assessments attributable to the Condominium so purchased which becomes due and payable after the date of such sale. (8) Date Of Commencement Of Regular Assessments and Fixing Thereof. The Regular Assessment provided for shall commence for each Unit, including Units owner by Declarant, on the first day of the month immediately after title to the first nit has been conveyed from Declarant to any other person. (9) Maximum Annual Regular Assessments. Notwithstanding anything herein contained to the contrary, the Association shall not, without the vote or written assent of the majority of the voting power of the Association residing in members other than Declarant, impose a regular annual assessment which is twenty