PALOMA HOMEOWNERS ASSOCIATION, INC. RULES AND REGULATIONS

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Proposed Rules for Paloma HOA Page 1 of 16 PALOMA HOMEOWNERS ASSOCIATION, INC. RULES AND REGULATIONS I. PREAMBLE This Rules and Regulations document comprises a best effort summary of important rules stated in the Association s Declaration of Restrictions and Protective Covenants ( Declaration ), Articles of Incorporation ( Articles ), and By-Laws ( Bylaws ), and all amendments thereto (sometimes referred to as the HOA Documentation ), as well as rules agreed upon by the Board of Directors. The HOA Documents, a copy of which each Owner received at closing, details additional owner and tenant responsibilities. II. INTRODUCTION A. Paloma is a deed-restricted community. This makes it different from a traditional form of home ownership. First, we share ownership of common land and have access to facilities such as the designated swimming pools. Second, as a member of the Association, together with all the other Owners, we have agreed in writing to abide by the Association rules. Third, we pay a quarterly assessment used for various purposes, including upkeep of the common areas and to build reserves for future obligations. The HOA Documents are in place to benefit all owners and to help safeguard our investment in the Property. B. The definitions contained in the Declaration and the Bylaws are incorporated into these Rules and Regulations as if they are part of them. C. These Rules and Regulations are made by the Board of Directors of the Association pursuant to the powers granted to it under Article V, Section 11 of the Bylaws. The primary purpose of these Rules and Regulations is to promote the health, safety and social welfare of the Owners of Paloma. The Rules and Regulations apply to all Owners, as well as their tenants, guests, invitees and other occupants. All Management Company personnel, members of the Board of Directors and members of the Covenants Committee are authorized to enforce these Rules and Regulations. D. The Owners and Lessees of each Lot are obligated to abide by each and every term and provision of the HOA Documentation. The Association has the authority to impose fines and/or take appropriate corrective actions, with the cost of such actions chargeable to the responsible Owner. In any suit, action, proceeding or demand related to enforcement of these Rules, the Association is entitled to recovery of all costs and attorneys fees at all levels. Please refer to Section 15 of the Bylaws for more information regarding the fining process and the Association s enforcement rights.

Proposed Rules for Paloma HOA Page 2 of 16 E. References made in these Rules and Regulations to a specific provision of the HOA Documentation is also deemed to refer to the amendment of that provision unless specifically stated otherwise. All Owners and Lessees should be familiar with all of these documents. Please note Article IX of the Declaration, entitled General Restrictive Covenants, which sets forth the initial use restrictions of Paloma. The Rules and Regulations are intended to supplement these General Restrictive Covenants. III. SUMMARY OF ARTICLE IX OF THE DELCARATION GENERAL RESTRICTIVE COVENANTS 1. The General Restrictive Covenants of Paloma apply to all Lots situated within the community. 2. No Lot shall be used except for residential purposes. The Developer is exempt from this restriction until all Lots have been sold 3. Buildings shall be located in conformance with the requirements of Palm Beach County, Florida and any specific zoning approvals, or as originally constructed on a Lot by Developer or its successors or assigns. 4. No noxious or illegal activity shall be carried on upon any Lot, nor shall anything be done thereon which may be or become an annoyance or nuisance to the neighborhood or any other Lot Owner. The Board is empowered to decide any questions regarding what is or may become a nuisance. No weeds, underbrush or other unsightly growths shall be permitted to grow or remain upon any Lot. No refuse pile or unsightly objects shall be allowed to be placed or suffered to remain on any Lot. All garbage or trash containers must be placed in areas so that they are not visible from adjoining Lots or from the street, except on collection days. 5. No structure of a temporary character, or trailer, tent, mobile home, recreational vehicle or the like is permitted on any Lot either temporarily or permanently. 6. Owners are prohibited from utilizing recreational facilities and amenities outside of the Neighborhood in which the Owner s Lot is located. 7. One sign of not more than one square foot may be used to indicate the name of the resident and/or house number. No other sign of any kind shall be displayed to the public view on the Property without the prior consent of the ACB. 8. No oil drilling, oil development operations, refining, quarrying or mining operations of any kind shall be permitted upon or in the Property. 9. Paloma is a pet restricted community. Owners are only permitted to keep a total maximum of two (2) dogs, cats, or other usual and common household pets or combination of same. All Owners should be familiar with the specific terms of Section 9 of Article IX of the Declaration.

Proposed Rules for Paloma HOA Page 3 of 16 10. No obstruction to visibility at street intersections is permitted. 11. Paloma restricts the types of vehicles permitted to be parked or stored in the community or on an Owner s property. No commercial vehicles, campers, mobile homes, motorhomes, boats, house trailers, boat trailers, or trailers of every other description are permitted to be parked or stored at any place on any Lot, except that they may be stored within garages. Small pick-up trucks, vans, and sports utility vehicles of the type commonly used as private passenger vehicles may be parked or stored in approved parking areas, so long as no commercial equipment or lettering or graphics is exposed to view. No vehicle which is unlicensed or inoperable may be kept or stored on the Property, unless kept fully enclosed inside a garage. No repair work to any type of motor vehicle, boat or trailer shall be conducted on any Lot other than minor repairs, cleaning or waxing, which is completed in less than 24 hours. Please refer to Section 11 of Article IX of the Declaration for further restrictions on vehicle parking. 12. No fence, wall or other structure may be erected in the front yard, back yard, or side yard except as approved by the ACB or as installed by the Developer. 13. No hedges or other planting may be erected in the front yard except as approved by the ACB, or as installed by the Developer. 14. Garbage, refuse, trash or rubbish shall be stored in a fashion to protect it from view from the street or another Lot, provided however, that the requirements from time to time of the County of Palm Beach for disposal or collection shall be complied with. Please refer to Section 14 of Article IX of the Declaration for additional restrictions on garbage and trash disposal. 15. No gas tank, gas container, or gas cylinder (except those placed by the Developer or approved by the ACB in connection with installation of swimming pools and/or permanent barbecues, and except those used for portable barbecues) is to be placed on or about the outside of any house or any ancillary building. All such items except those aforementioned items which are excluded are to be placed underground in every instance where gas is used. 16. All Owners of Paloma should be familiar with the restrictions on Towers, Play Structures, Play Equipment and the like, as set forth in Section 16 of Article IX, as amended on April 2, 2012. 17. Requests for installation of awnings, canopies or shutters, and window tinting materials must be submitted in writing to the Board or ARB. Hurricane shutters may not be deployed more than forty-eight (48) hours prior to the threat of a Category 1 storm and the Owner must ensure that the hurricane shutters are removed within seventy-two (72) hours after a Category 1 storm or threat of a Category 1 storm has passed the area.

Proposed Rules for Paloma HOA Page 4 of 16 18. Paloma restricts certain types of communication equipment from being installed in the community, including on an Owner s Lot. Please refer to Section 16 of Article IX of the original Declaration for the terms of this restriction. This Section was renumbered to Section 18 as part of the April 2, 2012 amendment to the Declaration. 19. Section 17 of Article IX of the original Declaration prohibits the platting or replatting of any Property in Paloma unless certain requirements are first met. 20. No Owner is permitted to change the drainage pattern of any Lot after a certificate of occupancy has been issued for the dwelling thereon that would cause an undue hardship to an adjoining Lot. Similar restrictions apply to the rest of the Property located in Paloma. The Association has a right to drain the Common Area through each individual Lot and all Lots. 21. Section 19 Article IX of the original Declaration contains very important restrictions on the right to lease a Lot in Paloma. Every owner should be familiar with all of these terms and conditions. No lease may be made for less than a three (3) month period, and all leases must be in writing. No more than two (2) leases may be executed per year for the rental of a Lot. Owners are responsible for the conduct of their tenants, and their tenants guests, invitees and other occupants. If a tenant or any person present on any Lot or portion of the Property, other than the Owner and the members of his immediate family permanently residing in the Lot, materially violate any provision of the Declaration, the Articles or is a source of annoyance to the residents of the Property, or willfully damages or destroys any Common Areas or personal property of the Association, then upon written notice by the Association, such person shall be required to immediately leave the Property. If such person does not do so, the Association is authorized to commence an action to evict such tenant or compel the person to leave the Property, and, where necessary, to enjoin such person from returning. The expense of such action, including attorneys fees and costs may be assessed against the applicable Owner, and the Association may collect such Assessment and have a lien for same as elsewhere provided. This is in addition to any other remedy available to the Association. 22. Motorized boat, jetski or other motorized vessels are not permitted on any waterway within the property. Fishing in the waterways is prohibited. 23. No screen enclosures may be constructed on any Lot except (i) as approved by the ACB and after all necessary approvals and permits have been obtained from all government agencies or (ii) as installed by Developer. 24. The Developer, so long as it owns any portion of the Property, has the right to exempt any Property from any or all of the restrictions set forth in the Declaration in the Developer s sole discretion. Section 22 of the original Declaration sets forth the procedure for the Developer to exempt property from the deed restrictions of Paloma. The Board of Directors is not aware of any such exempt property at this time. 25. No vehicles or trailers of any kind shall be permitted to be parked or stored overnight on any roads or streets within the Property from 9:00 PM until 5:00 AM.

Proposed Rules for Paloma HOA Page 5 of 16 IV. Supplemental Rules and Regulations 26. All Owners, their families, guests, invitees, tenants, and licensees must observe and abide by all parking and traffic regulations set forth in the HOA Documentation and these Rules. No overnight parking is permitted. Vehicles parked on the roadway must be parked in the direction of travel. Vehicles may not be parked in any manner to impede or restrict an Owner s ability of ingress or egress. Vehicles may not be parked in any manner to impede the use of a sidewalk or roundabout. If any unlicensed or inoperable vehicle is in violation of the HOA Documentation for more than a forty-eight (48) hour period, it is subject to towing 48 hours after being tagged by the Association with no further notice. 27. No solicitation of any kind, purpose or nature is allowed in the Association. 28. No Owner shall do or permit any assembling or disassembling of motor vehicles except within his\her garage. Each Lot Owner shall be required to clean his\her driveway of any oil or other fluid discharged thereon. 29. An Owner shall not allow any vegetation matter to grow on, or attach to, or to grow over the confines of their property. This also includes allowing such growth to extend over the zero lot line of the adjoining property. No planting shall occur within 18 inches of the zero lot line or the property line. In the event an Owner fails to correct such planting violations, the Association shall have the right to enter the property and remove the offending materials, the cost and consequences of such removal and subsequent repairs to be borne by the non-compliant Owner. Every Lot shall be kept in good condition, repair and appearance by the Owner or his or her tenants. Example: Porches, sidewalks, driveways and roofs are to be kept free of mold & mildew. The Association is not responsible for maintaining any vegetation installed by an Owner. 30. Damage to the Common Areas, property, or equipment of the Association caused by any Owner, family member, guest, invitee or tenant shall be repaired or replaced by the Association at the expense of such Owner. 31. No signs of any kind may be posted on street light poles, street directional or stop sign poles or trees or anywhere on the Association common areas and property, except for specifically designated bulletin boards, which may be provided by the Association for owner/resident use. No signs of any kind may be posted on or inside of any vehicle, including vehicle wraps, parked within the Association. Realtor open house or for sale signs may not be placed anywhere in Paloma. 32. Garage sales, tag sales, rummage sales or any other type of sale advertised to the general public is strictly prohibited. 33. No permanent athletic devices shall be affixed to the front or rear of the Unit; portable athletic equipment shall not be placed on the Association common areas or roadways.

Proposed Rules for Paloma HOA Page 6 of 16 34. No bicycles, tricycles, scooters, baby strollers, or other similar vehicles or toys, are allowed to remain in the common areas. The walkways, sidewalks, roundabouts and streets shall not be obstructed. 35. Large items for disposal such as carpet, appliances, water heaters, major collections of boxes, etc. shall not be placed at curbside until specific arrangements have been made with the pickup contractor. 36. No garage doors are permitted to remain open except for temporary purposes, and the Board may adopt further rules for the regulation of the opening of garage doors. A garage may not be converted into living quarters. 37. Business Use. With the exception of limited home business uses, as hereinafter defined, no Townhouse Residence or Single Family Residence (hereinafter referred to as a Residence ) shall be used in any trade, business, professional or commercial capacity. An Owner or approved Tenant may use their Residence in Paloma for limited home business uses. The term, limited home business uses, means such uses as are not apparent or detectable by sight, sound, or smell from outside the Unit; the uses do not involve regular UPS, FedEx or other courier pickup or deliveries, visits of customers or clients to the Residence or door-to-door solicitation of residents of Paloma; and the business activity is consistent with the residential character of the Property and does not violate these Use Restrictions. Examples of limited home business uses include, but are not limited to, computer-based telecommunications and literary, artistic, or craft activities. Traffic shall not be generated by the home occupation in greater volumes than would normally be expected in a residential neighborhood. The use of the premises for the home occupation shall be clearly incidental and subordinate to its use for residential purposes by its occupants. The use shall not change the residential character of the premises. There shall be no change in the outside appearance of the building or premises, or other visible evidence of the conduct of the home occupation. Home occupations shall not be conducted in any accessory building or structure, or any open porch or carport which is attached to and part of the principal structure. Equipment or processes which create noise, vibration, glare, fumes, odors, or electrical interference detectable to the normal senses at any lot line shall not be used in a home occupation. In addition, equipment or processes shall not be used which create any interference for neighboring properties in receiving radio, television, or other wireless devices, or which cause fluctuations in electrical service to such properties. On-premise sales of stock, supplies, or product are prohibited. On-premise use or storage of hazardous materials is prohibited. On-premise signs or other advertising of home occupations is prohibited. Employees, other than family members or residents, are prohibited. Owners or operators of home occupations shall obtain required city and county occupational licenses. Individuals requesting home occupational licenses shall sign an affidavit furnished by the city acknowledging their receipt of regulations applicable to such licenses. Excluding private instruction, not more than two persons per day may visit each business or businesses operating in a residence pursuant to these requirements, up to a maximum of four persons per day. Private instructions, limited to academic, artistic, and musical subjects, shall be limited to not more than two persons at the same time. The Board may restrict any business uses that it determines

Proposed Rules for Paloma HOA Page 7 of 16 interferes with the enjoyment or residential purpose of the Property in its sole and absolute discretion. 38. An Owner who intends or plans to be absent from his\her Residence during the hurricane season (June 1 - November 30 of each year) shall prepare his\her Residence prior to his departure by doing the following: i. Removing all items, including furniture, potted plants, and other movable objects from his\her yard, patio, and deck; ii. Making arrangements to have coconuts removed from palm trees on his Lot; iii. Designating a responsible person or firm to care for his Lot should it suffer hurricane damage; iv. Furnishing the Association with the name and contact information of the individual or firm that has been designated to care for his Lot in accordance with this Rule. Regardless of the Owner s absence, the Owner remains responsible to comply with the HOA Documentation, including the installation and removal of hurricane shutters. 39. Except for seasonal Christmas \ Holiday decorative lights, which may only be displayed between December 1 st and January 10 th, all exterior lights and lighting fixtures must be approved by the ACB. Any seasonal decorations which include audible sound must be turned off by 10:00PM. Front door porch and garage lights must use clear light bulbs and must be replaced by the Owner as needed. No colored bulbs are allowed. Garage \ carriage lights must remain on from dusk to dawn. Owners shall not tamper with, defeat or override automatic switches which control the dusk to dawn illumination feature. Permanent landscape lighting must focus \ point downward. No upward lighting of any landscaping is permitted. 40. No artificial vegetation shall be permitted on the exterior of any portion of the Properties. Exterior sculpture, fountains, flags, and similar items must be approved by the ACB. This provision is not intended to prohibit the use of US flags. 41. No trees shall be removed, except for diseased or dead trees and trees needing to be removed to promote the growth of other trees or for safety reasons, unless approved by the ACC. There shall be no alteration of plantings maintained by the Association in any common area. 42. All property located at street intersections shall be landscaped so as to permit safe sight across street corners. No fence, wall, hedge, shrub or planting shall be placed or permitted to remain where it would create a traffic or sight problem.

Proposed Rules for Paloma HOA Page 8 of 16 43. All solar heating apparatus must conform to the standards set forth in the HUD Intermediate Minimum Property Standards Supplement, Solar Heating, and domestic Water Systems. No solar energy collector panels or attendant hardware or other energy conservation equipment shall be constructed or installed unless it is an integral and harmonious part of the architectural design of a structure, as reasonably determined by the ACB. The ACB may require solar collectors to be installed on an Owner s roof south or within 45 east or west of due south, if such requirement does not impair the effective operation of the solar collectors. Solar collectors, vents, or other roof-mounted, energy savings devices shall be mounted in such a way so that they do not project above the surface of the roof of a Residence any more than necessary to operate effectively (within manufacture specifications and limits); and all such equipment, other than solar panels, shall be painted consistent with the color scheme of the portion of the Property to which such equipment is installed. This provision is not intended to prohibit the use of solar energy devices. 44. Pool Rules: A. A pool key provided by the Management Company is required for pool use. For liability and quality of life concerns, do not open the pool gate for children or anyone else who is not your guest. The pool key is necessary for entrance to the pool area, restrooms and for exiting the pool area. The pool gates must be kept shut and locked. B. NO SMOKING is allowed in or around any of the pool areas. C. For the peace and quiet of surrounding neighbors, the pool is open from sunrise to sunset. D. No running, jumping, ball playing, rubber rafts or large toys are allowed in the pool or pool area. E. No diving is allowed. F. NO PETS are allowed in the pool or pool area. G. The pool area is intended for the use of all residents. NO PRIVATE PARTIES are allowed in the pool areas which prevent or preclude the use of the pool by other owners. H. Electronic equipment such as radios, phones, ipods or similar devices must be used with a headset only. I. NO ALCOHOL and NO GLASS BOTTLES OR OTHER GLASS CONTAINERS are allowed in the pool area.

Proposed Rules for Paloma HOA Page 9 of 16 J. Children under 12 years of age must be accompanied by an adult. Children in question must have proof of age. K. Pushing or boisterous play is not permitted in the pool or on the pool deck. L. For children of diaper age, diapers are not permitted in the pool. Swim diapers are mandatory. Any person who is not toilet trained or is incapable of controlling bodily functions is not permitted in the pool without swim diapers or other form of protective covering. There is no lifeguard on duty; swimming is at your own risk. N. Proper bathing attire must be worn. O. Pool furniture may not be removed from the area. No furniture is allowed in the pool. P. Owner agrees to defend, indemnify and hold harmless Paloma HOA, its officers, directors, members, contractors, agents and employees from and against any suit, claim, loss or cause of action arising out of, or in conjunction with, the utilization of the recreational facilities, or the areas in proximity to the recreational facilities, by Owner and/or Owner s family, guests, or tenants. In addition, Owner agrees to reimburse Paloma HOA for any and all damages, including but not limited to equipment, fixtures, furniture or other property, either real or personal, arising out of the utilization of the recreational facilities, without regard to whether such damage is caused by Owner and/or Owner s family, guests, or tenants, or is the result of the negligence or other fault of the Owner or Owner s family, guests, or tenants. Paloma HOA assumes no liability whatsoever to Owner and/or Owner s family, guests, or tenants,for any mechanical or electrical failure, natural disaster, riot, Act of God, bomb threat, or any other development which may prevent, disrupt, limit or frustrate Owner s and/or Owner s family, guests, or tenants use of the recreational facilities. 45. All Owners shall comply with the Use Restrictions as set forth in the HOA Documentation and Amendments thereto. 46. Complaints regarding the management of the Association Property, or regarding the actions of other Owners, their families, guests, or tenants shall be made in writing to the Association care of the Management Company and shall be signed by the complaining Owner. 47. Any consent or approval given under these Rules and Regulations by the Association may be revoked or modified at any time by the Board. 48. These Rules and Regulations may be modified, added to, or repealed in accordance with the Bylaws.

Proposed Rules for Paloma HOA Page 10 of 16 RECREATIONAL AREA FACILITIES RULES AND REGULATIONS 1. General Information: These Rules and Regulations have been adopted and approved by the Board of Directors, hereafter referred to as the Board, of Paloma Homeowners Association, Inc., hereafter referred to as the Association. They are designed to define the rights, privileges and obligations of property Owners, hereafter referred to as Owners, their respective family members, guests or lessees, and to protect the recreational area facilities. Further, they have been formulated to acquaint Owners with the services available to them, and for the proper utilization of these facilities. These Rules and Regulations may be amended or augmented from time to time by the Board to serve the community better. The responsibility for their enforcement will rest with the Board and the Management Company. It is the responsibility of those using the facilities to know these Rules and Regulations and to cooperate in their enforcement. 2. Facility Privileges: Facility privileges are granted to Single Family Owners and lessees in good standing. Owners are prohibited from utilizing recreational facilities and amenities outside of the Neighborhood in which the Owner s Lot is located. 3. Guests and Family Members of Owners or Lessees: All guests must be accompanied by an Owner or lessee. 4. Transfer of Privileges to Lessee(s): Any Owner may transfer his/her right of use of the recreational area to his/her tenant(s), provided a completed Lease has been signed by the Owner and submitted to the Management Company. A non-refundable application fee of $250.00 will be required. The Owner s privileges will be suspended during the lease period. The lessee(s) must be renting and residing in the property for which the privileges are transferred. 5. Hours of Operation: The Board sets the hours of operation and these hours may change without notice. Anyone on the property after these specified hours are trespassing which is punishable by law. 6. Clubhouse/Facilities General: A. Age Requirement: If the clubhouse is used, children under the age of 18 must be accompanied and directly supervised by an adult (18 years of age or older). B. Parents will be responsible for the conduct of their children and their children s guests at all times. One (1) adult must be present. C. Owners, lessees and accompanied guests are to be respectful of Association agents and are not permitted to reprimand Association employees or contractors or in any manner interfere with the management of the facility.

Proposed Rules for Paloma HOA Page 11 of 16 D. Owners, lessees and guests use all facilities (clubhouse, swimming pool, gym, and playground) at their own risk. E. Owners, lessees and accompanied guests must conduct themselves in an orderly fashion. F. Owners who have a concern or suggestion should bring it to the attention of the Management Company. G. Proper attire is to be worn at all times in accordance with acceptable practice for the particular area of the facilities being used. The wearing of wet bathing suits is not permitted in the clubhouse building except in the restrooms. Anyone not conforming to the dress code outlined in these Rules and Regulations will be asked to do so before using the facilities. H. Owners or lessees using any area of recreational facilities are responsible for leaving it neat and clean after each use. I. Owners or lessees using the kitchen area of the clubhouse are responsible for leaving it neat and clean after each use. J. Unauthorized persons shall not tamper with or adjust the heating and air conditioning systems. K. No bicycling, skateboarding, roller skating, roller blading, scooters or use of golf carts is permitted in the recreational facilities area other than the use of transportation to and from the facilities. L. All bicycles are to be parked in the bicycle rack. M. Subscriptions, solicitations, petitions, or notices which do not concern the Association s affairs may not be distributed or posted on recreational facilities properties. N. No person shall engage in any hazardous activity in the common areas. O. All facilities are designated as smoke free. P. The cost of replacing any Association property that is damaged, broken or removed by an Owner, lessee or guest shall be charged to the owner. Q. By Florida Statutes, animals are not permitted in the recreational facilities area except for animals aiding disabled persons.

Proposed Rules for Paloma HOA Page 12 of 16 R. Parking shall be in designated areas only. The Clubhouse parking lot may not be utilized for overnight parking. S. Personal property should not be left unattended. The Association is not responsible for lost or stolen personal property. 7. Use of the Recreational Area Facilities for Scheduled Events: It is the intent of the Association to offer the Clubhouse facilities to single family homeowner residents only. Acceptance of a reservation shall be based upon approval of the Management Company, which has the right to refuse the application. Owners may appeal to the Board if they feel they have been unjustly refused permission by the Management Company to reserve the facility. The Board shall have final right of determination. The clubhouse may not be reserved for a non-single family property Owner. A. All Board of Directors meetings and Association community functions shall take precedence over all other activities. B. General uses of the facilities are available to all single family homeowner residents on a daily basis. It should be noted that groups of ten (10) or more, including regular social gatherings that are open to the community, must be scheduled with the Management Company. C. Residents will be notified of the Board or Association functions by way of posted notices to be published by the Management Company as to date and time of the event. Notices may be published via the HOA website and\or via email correspondence. D. Private parties by Owners: The Clubhouse may be reserved on an exclusive basis by single family homeowners for special occasions and the entertainment of family and friends. Those who wish to schedule a private party may use the clubhouse for a fee. Residents may contact the Management Company for the necessary reservation agreement and applicable fees and security deposits. If a reservation is made under fraudulent means or there are omissions or errors on the reservation agreement, forfeiture of the deposit and cancellation of the private party may result. 8. Disciplinary Actions: Any infraction of these Rules and Regulations brought to the attention of the Management Company or the Board of Directors may result in disciplinary action by Management or the Board.

Proposed Rules for Paloma HOA Page 13 of 16 9. Indemnification: Owner agrees to defend, indemnify and hold harmless Paloma HOA, its officers, directors, members, contractors, agents and employees from and against any suit, claim, loss or cause of action arising out of, or in conjunction with, the utilization of the recreational facilities, or the areas in proximity to the recreational facilities, by Owner, and/or Owner s family, guests, or lessees. In addition, Owner agrees to reimburse Paloma HOA for any and all damages including but not limited to equipment, fixtures, furniture or other property, either real or personal arising out of the utilization of the recreational facilities, without regard to whether such damage is caused by Owner or is the result of the negligence or other fault of the Owner and/or Owner s family, guests, or lessees. Paloma HOA assumes no liability whatsoever to Owner and/or Owner s family, guests, or lessees for any mechanical or electrical failure, natural disaster, riot, Act of God, bomb threat, or any other development which may prevent, disrupt, limit or frustrate Owner's and/or Owner s family, guests, or lessees use of the recreational facilities.

Proposed Rules for Paloma HOA Page 14 of 16 SINGLE FAMILY CLUBHOUSE RESERVATION AGREEMENT In contracting to reserve the Paloma Clubhouse, Owner agrees to adhere to and comply with all rules, requirements, maximum capacities, guidelines, fees and deposits for reservation. The hours of operation for the Clubhouse are to be determined by the Board. All the various recreational areas are subject to the HOA Rules and Regulations that must be obeyed at all times. The entire recreational area is designated as smoke-free. Reservation Fees and Deposits: Terms and Conditions of Use Two checks (a reservation use fee of $75.00 and a damage deposit of $250.00), each made payable to Paloma Homeowners Association, Inc., are to be submitted to the Management Company together with the signed Agreement. The Management Company, upon receipt of this document and fees, will confirm your reservation. Only Single Family Owners in good standing may reserve the Clubhouse (Owners, for the purpose of this agreement, includes lessees in good standing with Paloma Homeowners Association, Inc.). A reservation fee of $75.00 will be charged for the exclusive use of the Clubhouse. The $250.00 security deposit will be refunded after inspection of the area, provided there has been no damage or loss including, but not limited to the clubhouse, kitchen, restrooms and pool area. These areas must be left in a neat and clean condition. If a reservation is made under fraudulent means with omission or error, it may result in forfeiture of the deposit and reservation fee and cancellation of the private party. Reservation/Cancellation Policy: No reservation will be accepted earlier than six (6) months before the date of the event. A reservation may be cancelled by the Owner up to fourteen (14) days prior to the event. In such case, both the reservation fee and deposit will be refunded in full. Only two (2) reservations per household may be active at the same time. The Association does not assume or accept liability for the losses due to any catastrophic event or Act of God that cause the recreational area to be closed. If the recreational area is closed due to a catastrophe or Act of God prior to the event, the reservation fee and deposit will be refunded in full. Set-up/Decorations/Clean-up: All Areas: All set-ups of tables, chairs and decorations, as well as clean-up, shall be in accordance with the following guidelines: General: The display of fireworks is not permitted. Confetti (paper and metallic) and rice are not permitted. Nothing may be attached to the Clubhouse walls, ceiling fans or furnishings. At the end of the event, all Clubhouse furnishings should be returned to their original positions. Any additional tables and chairs must be washed, folded and returned to the storage room.

Proposed Rules for Paloma HOA Page 15 of 16 Kitchen: The Association does not provide kitchen cleaning materials, such as towels, cloths, soap, detergent, potholders, garbage bags, etc. The Owner must provide these items. The refrigerator/freezer, sink, microwave, counters and cabinets must be emptied of all unused materials and cleaned. The kitchen floor must be broom swept. Restrooms: The restrooms must be left in a neat and clean condition. Trash: All trash and debris must be bagged in heavy duty, black plastic bags and left in the designated area. Music: Music must be turned off at 10:00 p.m. in order not to disturb the surrounding residents. Parking: Parking shall be in designated areas only. Reservation of the Clubhouse reserves the exclusive right of use beginning two (2) hours prior to the scheduled event. Owner must complete clean up, and vacate the Clubhouse no later than 11:00 p.m. and must leave the facility in a neat and clean condition. Indemnification: Owner agrees to defend, indemnify and hold harmless the Association, its officers, directors, members, contractors, agents and employees from and against any suit, claim, loss or cause of action arising out of, or in conjunction with, the utilization of the Clubhouse facilities or the areas in proximity to the Clubhouse facilities by Owner pursuant to this Agreement. In addition, Owner agrees to reimburse the Association for any and all damages including but not limited to equipment, fixtures, furniture or other property, either real or personal, arising out of the utilization of the recreational facilities, pursuant to this Agreement, without regard to whether such damage is caused by Owner and/or Owner s family, guests, or lessees or is the result of the negligence or other fault of the Owner or Owner s family, guests, or lessees. The Association assumes no liability whatsoever to an Owner and/or Owner s family, guests, or lessees for any mechanical or electrical failure, natural disaster, riot, Act of God, bomb threat, or any other development, which may prevent, disrupt, limit or frustrate Owner's and/or Owner s family, guests, or lessees use of the recreational facilities. This Agreement contains the entire agreement by and between the Association and Owner, and all prior oral or written understandings and agreements are hereby superseded and rendered null and void. Any amendment hereto must be in writing and signed by each of the parties herein.

Proposed Rules for Paloma HOA Page 16 of 16 In Witness Whereof, Paloma Homeowners Association, Inc., by and through its duly authorized representative(s), and Owner have executed this Agreement on. I/We, Owner(s) [or Lessee, if appropriate] apply for the use of the Paloma Clubhouse for the following date and time for the purpose of. Estimated number of total guests: Adults: Minors: Adults 18 years of age and over must supervise anyone less than 18 years of age while in the Clubhouse. Food will be served: Yes No Alcoholic beverages will be served: Yes * No *It is agreed between the parties that, if alcoholic beverages are to be on the premises during this specific function, that the undersigned is responsible for the conduct of their family and/or guests and that it will not be served to minors. Any alcoholic beverages will be removed by the Owner immediately after the function. Owner assumes all liability for the consumption of alcohol by Owner and Owner s guest(s). Declaration: I hereby declare that I am a member in good standing of the Association, Paloma Homeowners Association, Inc. I further declare that I have read and understand the Reservation Agreement and the Rules and Regulations and agree to abide by them. Owner: Signature: Date: Print Name: Address: Phone number: Email Address: Reservation Check # Deposit Check # Date Deposit Check Returned Inspection Comments: Date \ Time Inspected: