LAKE HAUTO CLUB 140 MAPLE TERRACE, NESQUEHONING, PA A NON-PROFIT CORPORATION RULES & REGULATIONS

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Revised 1/17/13 LAKE HAUTO CLUB 140 MAPLE TERRACE, NESQUEHONING, PA 18240-2128 570-645-7100 A NON-PROFIT CORPORATION RULES & REGULATIONS Among the several duties of the Lake Hauto Club Board of Directors is the power to create Rules & Regulations to govern the actions of club members and their guests. Along with the power to create the Rules & Regulations goes the responsibility of enforcement, and if necessary, the taking of disciplinary action against violators. In general, the rules pertain to activities in areas specifically under the control of the club. These areas are the four beaches, picnic and recreation areas, the four greenbelts, the lake, dam and north and south shore areas and all roads between the west entrance bridge and the east end area. In certain specific areas, the Rules & Regulations are directed to actions regarding the members' property. These rules are kept to a minimum and are intended to control only those actions that are of concern to the whole community. A. MOTORISTS 1. The speed limit on Lake Hauto roads is 15 miles per hour except for Lake Drive which is 25 miles per hour, and all are expected to drive with extreme caution through the development. 2. Only properly licensed and inspected (where it applies) motor vehicles can be parked on CLUB MEMBERS properties. B. WATERCRAFT 1. Watercraft must be registered with the club prior to launching on Lake Hauto annually and must display the Lake Hauto registration emblems on the BOTH sides of the watercraft visible above the water level. No registration will be issued without first providing a certificate of insurance. 2. All owners of motor-powered (gas, diesel, jet or electric) watercraft are required to provide a copy of the State certification and insurance form of watercraft registration with the Lake Hauto Club Registration Form. The copy of your Pennsylvania Registration Form will be made a part of your records and you will not receive your watercraft decal until this is on file at the office. When registering in person, a copy of your registration card and insurance will be made at the office. 3. For non-powered fishing boats, canoes, and sailboats exempt from this requirement, the security officer will check proof of ownership. 4. Watercraft will not be allowed on the Lake and cannot be stored on any Club property without the current Lake Hauto Club Boat Registration stickers. 5. All watercrafts must operate safely and in accordance with any act, rule, or regulation now in effect or hereafter enacted by any local, state or federal government body having jurisdiction over such activities as well as the Lake Hauto Club's determination of seaworthiness. 6. Watercraft in operation on Lake Hauto must be at least 150 feet off the north and off the south shores. To overtake another watercraft (passing), the approach should be on the port (left) side after sounding a horn (air or power) as per U.S. Coast Guard Regulations. 7. Power watercraft will reduce speed to 20 miles per hour when approaching unmotorized watercraft. 8. All buoys marking limits for boating must be observed. No wake speed is to be observed west of the marker buoys at Crescent Beach. 9. a) The length of all Inboard/Outboard (I/O) watercraft only must be 20 foot or under with no greater than a 4.3 Liter engine. 1

b) The outboard watercrafts must be less than 19 feet and have engines of four cylinders or less. c) Personal watercraft engines are limited to 135 horsepower or less. d) Pontoon boats will be 20 feet or less and have motor of four cylinders or less. Pontoon boats are measured by deck size. e) Power watercraft registered and operated on Lake Hauto prior to 1975 are excluded. This exclusion applies to the original boat and motor and not to any replacement, revision or modification. 10. All watercrafts newly registered after January 1, 1982 must provide the Manufacturer's Warranty Card as proof of compliance before the boat will be registered. 11. Guests of members (as hereinafter defined) shall not be allowed to bring watercraft to the property for use at Lake Hauto. 12 Bona fide lessees (as hereinafter defined) shall be permitted to launch one (1) watercraft on Lake Hauto during the term of their occupancy under a lease agreement which has been filed with and approved by the Club, provided the lessee has paid the necessary fee. 13. A regular member who leases his property to a bona fide lessee shall not be permitted to launch any watercraft on Lake Hauto. 14. A regular member (not leasing his property) having paid his fee shall be permitted to launch or dock two watercraft (maximum) on the lake, subject to registration. 15. All watercrafts must be removed from the Club's Docks by September 30 of each year or as Board deems necessary, or they will by removed by the Club. All other watercraft must be removed from the rest of the Club property as requested by the Club. The violator of this Rule may also be subject to a fine. 16. No stand-up, personal watercraft are permitted. 17. No diving and /or swimming will be permitted from watercraft at any time except from the breast of the dam out 75 feet. There will be markers for the area. 18. Sailboards are not allowed. 19. Hang gliders or parachutes towed by a motor watercraft are not allowed. 20. All current rules of the PA Fish and Boat Commission regarding age restrictions for operation of watercraft will be followed and enforced. 21. Personal watercrafts are considered to be motorized watercraft and will be treated as such; subject to all rules of the lake. C. SNOWMOBILES, MOTORIZED AND MISCELLANEOUS RECREATION VEHICLES 1. This section applies to all recreation vehicles defined as, but not limited to, snowmobiles, mopeds, two, three or four wheel all-terrain vehicles (ATV's), and golf carts. Go-carts are expressly prohibited from use on the Lake Hauto Club property. 2. The vehicle must be registered with the Club annually, prior to operation, and must display the Lake Hauto registration emblem in a visible location on BOTH sides of the vehicle. Also, no registration will be issued without first showing proof of insurance. 3. All motorized sport vehicles shall be equipped with state approved muffled devices which limit the noise factor which can be an annoyance and nuisance to other Club members. 4. Members' equipment, when in operation on and crossing Lake Hauto roads, should conform with the Regulations of the Club. This applies to bona fide lessees also. 5. Guests are not allowed to use personally owned recreation equipment on Lake Hauto roads. 6. Recreation vehicles are not allowed on any beaches. 7. Operator and occupants must display current recreation tags. 8. All vehicles operated at night must be equipped with operating head and tail lights. 9. Operating hours for Golf Carts from Memorial Day to Labor Day will be from 8:00 a.m. to 11:00 p.m. Because of the noise factor listed in #3 of this section, operating hours for ATVs, Mopeds and Snowmobiles will be from 8:00 a.m. to 8:00 p.m., 7 days a week, 365 days a year. 10. Use of these in the Greenbelts should be confined to existing paths and trails. 11. Operators of any recreation vehicles shall be age sixteen and possess a valid driver s license. D. WATER SKIING 2

1. All water skiing shall be done in the area designated by buoys. Traffic is to flow counterclockwise. 2. All water skiing hours are between 9:00 a.m. and 8:00 p.m. daily within the confines of the skiing area. These times superseded only by State Rules. 3. Only those boats engaged in the towing of water skiers will be permitted within the designated skiing area during the skiing hours on Saturday, Sunday, and designated State or Federal Holidays. During weekdays, if no skiing is being done, other boats are permitted the use of the area. 4. All of your actions should be prudent, sober and considerate. The ski area and the lake will be patrolled. Notice of infraction for violations and/or reckless operation will be issued by the Patrol. Failure to obey the Rules and Regulations can result in fines and/or suspension of the member's recreation privileges. Members are responsible for the actions of their guests. 5. All water skiers must wear a U.S. Coast Guard approved life vest of life jacket while skiing. 6. Any boat whose skier is ready to release the tow rope shall move as close to the buoys as possible. 7. No dropping of one ski. 8. All boats engaged in the towing of skiers or other approved apparatus shall contain two people (minimum). One shall operate the boat while the second observes and watches the skier. 9. Downed skiers must be given a wide berth by all other motorized boats. Safe conditions must be maintained at all times and will be determined at the sole discretion of the water patrol. E. BOAT DOCKS 1. Members and/or lessees, having paid the recreation fee and Boat Registration fee will be issued private docking permission upon request for Lake-front lots. 2. Docking for non-lake front members, having paid their recreation fee and the Boat Registration fee will be at one of the club docks. 3. New dock construction or reconstruction by members owning Lake front lots, commencing in 1976, requires members having paid their recreation fee and plan approval by the Directors of the Lake Hauto Club. a. Length of dock cannot exceed thirty-two (32) feet, or be placed to a depth of three (3) feet of water without Board approval. 4. A registration fee per boat will be collected from all boat owners when they are registered with the club. 5. Fees must be in office by March 31st of each year to insure reservation of dock slip. The Club will not be responsible for notifying boat dock renters of the deadline. 6. Public docks cannot be modified or revised without the permission of the Club, with the exception of bumpers. 7. Floating docks (unattached) are illegal and therefore are not allowed on Lake Hauto. 8. Aeration of lake water in winter to prevent freezing is not permitted. F. SWIMMING 1. No person or persons will be permitted to swim more than 42 feet offshore. At the Club beaches, swimming will be confined to the designated areas. 2. Food and beverages will be confined to the picnic area. In the interest of safety and cleanliness, glass containers are prohibited in the beach area. 3. Children under 10 years of age must be accompanied by a responsible person of at least 16 years of age. G. FISHING 1. Fishing in Lake Hauto is available to members and/or lessees who have paid their recreation fee and display their current recreation tag (age 14 and older) and Pennsylvania Fishing License (age 16 and older). Please refer to Rule K for a definition of who is a guest. This definition will be strictly enforced. a. All guests must fish with a member and both must have the proper tags and license. If the member does not wish to be present with the guest, the member must obtain a one day guest tag for the guest. b. Security personnel can confiscate illegally obtained membership tags. Any individual found fishing without a member must identify the member who provided him with the tag. Any violation of this rule 3

can be the cause of an issuance of a citation to the member. There can be no selling or transferring of recreation tags by any member or guest. 2. Fishing will be permitted during open seasons as specified by the Commonwealth of Pennsylvania. Size limits as posted by the Lake Hauto Club. Bass fish must be 14 inches long. 3. All fishing will be prohibited two weeks prior to the opening date of trout season. 4. Nesquehoning Creek will be closed to fishing from October 15 to the opening day of trout season. 5. Fishing is prohibited from the boat docks with the exception of the club sanctioned fishing derby. H. SCUBA DIVING 1. Scuba diving will be permitted in designated areas at the east end of the lake. 2. All divers will follow all rules set up by the P.A.D.I. when diving, and must be certified. 3. A marker buoy will be used to inform others of their presence. 4. Must contact the office or security prior to diving, and provide proof of certification and insurance. I. LOT FILL 1. No mine breaker waste is allowed on any property in Lake Hauto Because of high acid content and possible contamination of the lake. J. USE OF THE RECREATIONAL AREAS AND OTHER CLUB FACILITIES 1. Recreational tags of members must be displayed by club members and their immediate families or guests while using the club's recreation areas and other facilities. Admittance to such areas and facilities will not be permitted without such recreation tag. 2. Members' guests, upon request of security agents, must display cards or tags issued by the club. Admittance to the recreation areas and/or other club facilities will not be permitted without such identification cards or tags. 3. The recreation areas and other Club facilities are for the entertainment and enjoyment of all facilities for business, pecuniary or monetary gain is forbidden. 4. All beach areas close at 11:00 PM. 5. There will be NO smoking at all the beaches in the sand area and the playground areas. K. GUESTS 1. Guest definition: Any person other than the member's spouse, unmarried children residing in member's residence or relatives staying with the member shall be considered guest. The member must be available in the area when guests are using Club facilities. Guest cards or tags must be obtained from security or the Club office at Crescent Beach when a party exceeds the membership tags allotted to the member. Members must be in good standing to obtain guest tags. 2. No Club Member can be a guest of another Club Member. 3. Each member shall be responsible for the observance of the Club's rules and regulations by the guests of such member. This specifically means that such member is financially responsible to the club for any damage done by his guest as well as any fines or penalties levied against his guest. 4. Between Memorial Day and Labor Day, members, having paid their recreation fee, shall be allowed a total of 25 guests during the period. Children, under 14, shall not be considered as guests, provided they are accompanied by a Club member. A charge of $2.00 per day per guest shall be made to use the recreation facilities when the 25 guest limit has been reached. L. HUNTING 1. No hunting is permitted within development boundaries. 2. Firing of any type of firearm (including target shooting) is not permitted within the development. M. PETS 1. All domesticated animals (dogs, cats, etc.) shall be confined to the member's property unless the 4

animal is on leash under control of a responsible person. All state and local laws, resolution and ordinances shall be enforced by the club and state authorities. Pets are not permitted on or in the recreation, swimming, boating or picnic areas as designated by the Lake Hauto Club. Violations can cause suspension of swimming by state authorities. 2. No dogs shall bark continuously for more than 10 minutes. N. LEASING 1. Member must be in good standing. 2. The rental time period cannot be less than four months. Weekly rentals are not permitted. 3. Rentals can only be for improved lots with a dwelling. Empty lot rentals are not permitted. 4. Rooms within a member s home cannot be rented 5. The member loses all club privileges for the property that is being rented. 6 The lessee cannot bring or use member s recreation privileges: for example they cannot register boats, 4 Wheelers, Golf Carts and etc. 7 The lessee has beach privileges while they are renting. 8 The member is responsible for any club property damage by lessee. 9 Lessee must be register at the office. 10 Lessee shall receive the Rules and Regulations of Lake Hauto Club and must abide. 11 If any of the Rental Rules are violated, it will be considered an Infraction and penalties will be imposed. O. VANDALISM OF CLUB PROPERTY AND/OR MEMBERS' PROPERTY 1. Any acts of vandalism or malicious mischief which cause damage or ruin to any Lake Hauto Club property or members' property will subject the vandal to a fine as set by the Board of Directors and/or suspension of usage of the Lake Hauto facilities, as well as cost of damages. P. SIGNS 1. Real Estate: a. Any sign designating or advertising the sale of a property or premises shall not exceed a maximum size of 18 x 24 inches (432 sq. in.). b. Only one sign is permissible per property for sale. c. Posting of "FOR LEASE" or "FOR RENT" signs is prohibited. 2. Directional Signs: Club members who post directional signs on club property are to have these removed following their use. 3. The posting of signs or the attachment of any objects to, as well as entry upon, the Teepees or Rocks at the entrance to Lake Hauto is not permitted. Q. DEED OR CONDITIONAL SALES CONTRACT RESTRICTIONS, CONDITIONS AND COVENANTS 1. Restrictions, conditions and covenants which are part of a deed, miscellaneous deed or conditional sales contract are incorporated herein and made a part of these Rules and Regulations and must be enforced by the Club. R. VOTING 1. Any member not having their dues currently paid cannot vote. 2. Any member who has not paid the hydrant fee (including on the dues invoice) is considered delinquent and not eligible to vote. S. DUES AND ASSESSMENTS 1. Full Fees must be paid on all improved properties (i.e., 3 lots with 3 homes pays full fee on all 3 5

lots; 3 lots, only 1 lot with home, pays 1 full fee). T. COLLECTION OF DUES 1. Annual dues shall be payable by the first day in February. The dues may either be postmarked or in the office by said date. Members paying with checks that are returned incur the same penalty as members not paying on time. 2. Dues paid between February 2 and the March 1 shall incur a 5% penalty. 3. Dues paid after the first day in March shall incur an additional 10% penalty. That is, a total penalty of 15% of the original dues amount. 4. Dues notices shall be mailed by the thirty first day of October or as soon as possible after that date. U. EXPENDITURES 1. Expenditure between $2000 and $5000 shall require the notification of all board members by email or telephone. Consent for the spending must be obtained from a majority of the entire board. With a full board of nine, expenditure would require the consent of five board members via email or by written signature to the office manager. Expenditure above $5000 shall require a majority vote of the board at either a special or regular board meeting. Expenditure above $10,000 shall require a minimum of either two written quotes, notification of all board members and a majority vote of the board at either a regular or special meeting. V. ENVIRONMENTAL RULES 1. There shall be no discharge of litter on Lake Hauto property. 2. There shall be no discharge of leaves, grass clippings, branches, Christmas trees, tires, or other organic waste into Lake Hauto or its tributary streams. 3. There shall be no use of algaecide, herbicides, or pesticides within fifty feet of Lake Hauto or its tributary streams. 4. There shall be no discharge of detergents into Lake Hauto or its tributary streams or into drainage ditches leading to the lake. 5. All works performed at, or beneath the high water line of the lake requires written approval by a majority vote of the Board of Directors and written permission from the Commonwealth of PA Department of Environmental Protection, PA Fish & Boat Commission, and U.S. Army Corps of Engineers. 6. To ban from use any and all outdoor furnaces as the smoke from such furnaces would pose a nuisance to the adjacent neighbors as the topography of the lake valley would allow the smoke to lie in the bottom of the valley. Also as the lots in Lake Hauto are to be maintained in a wooded condition there is no allowance for clearing an area large enough to place the furnace in to meet the township ordinance. The majority of lots in Lake Hauto Club are not large enough to meet the ordinance size and the ability to place a furnace far enough from an intersection with a neighboring lot would not be able to be met in the majority of cases. Therefore this rule will ban all outdoor furnaces within the Club. W. BUILDING REGULATIONS 1. The member is responsible for following the established building requirements and obtaining all necessary permits. X. ENFORCEMENT OF RULES AND REGULATIONS 1. The rules and Regulations of your club are designed and established to allow every member maximum enjoyment of Lake Hauto and all of the recreational facilities within the development. To maintain what we have and to allow Lake Hauto to continue to build, there is an obligation as members to every other member to see that rules and regulations are observed. 2. The Board of Directors of the Lake Hauto Club shall have the power to enforce the Rules and Regulations. An official notice of infraction of any club Rule or Regulation will be presented to the member involved, as near to the time of infraction as possible, either in writing or personally, by a member of the security staff or any member of the Board of Directors. If the notice of infraction is given orally, a written 6

infraction notice will follow. A copy of the notice of infraction will be sent to the Chairman of the Security Committee of the Board of Directors for discussion at their next meeting. Any member who receives an infraction notice may request a hearing before the Board of Directors. The request should be in writing and upon receipt the board will set a time and place for a hearing and will so notify the offending member. The member will be required to appear at that hearing to provide any defense with he so desires. After the hearing, the Board of Directors shall determine if the member has been proven guilty of the violation by a preponderance of evidence. If the member is proven guilty, the Board of Directors will determine the punishment. The Board shall have the power to fine members and/or to suspend their rights. Fines and penalties are regulated by Rule and Regulation Z. 3. Letters concerning rule violations and fines shall be issued by the Board of Directors by majority vote. Approval shall require notification of all Board members by email or phone call. With a full board of nine, approval would require the consent of five board members via email or written signature to the office manager. The Board reserves the right not to disclose to the membership names or issues that are deemed personal or sensitive. 4. Club Rules & Regulations, state laws, local laws and ordinances may be enforced by state authorities, local authorities, Lake Hauto security officers, Lake Hauto water patrol as well as private agencies as may be hired by the Lake Hauto Club. 5. Members shall not permit any violations of the laws of the Commonwealth of PA or the U.S. of America upon any lot owned or leased. 6. Disruptive behavior, as determined by the presiding officer, at any Lake Hauto Club board meeting or any Lake Hauto Club members meeting is prohibited. The presence or consumption of alcoholic beverages at these meetings is also prohibited. Y. FINES AND PENALTIES 1. Any member proven guilty of violation of the Rules and Regulations will be subject to fines and/or suspension of their rights as members except for violations to Section C of these Rules and Regulations. The Board will use the following as a guide in establishing fines: First Offense: Minimum $25.00 Fine/ Maximum $100.00 Fine Second Offense: Minimum $50.00 Fine /Maximum $250.00 fine and/or 30 Days Suspension of Privileges Third and Subsequent Offenses: Minimum $200.00 Fine/Maximum $500.00 Fine and/or Suspension of Privileges for 1 Year. 2. Any member issued a citation by Security or Board Member for violations to Section C of these Rules and Regulations will be subject to fines and/or suspension of their rights as members. The Board of Directors will issue the following fines and/or suspension to those members issued citations for violations to Section C of these Rules and Regulations as follows: First Offense: Minimum $100.00 Fine/Maximum $250.00 Fine Second Offense: Minimum $250.00 Fine/Maximum $500.00 fine and/or 30 Days Suspension of Privileges Third and Subsequent Offenses: $500.00 Fine and/or Suspension of Privileges for 1 Year. 3. Offenses will be dropped from a member's record at the rate of one every twelve months. 4. Second and subsequent offenses are of the same Rule or Regulation. 5. The Board of Directors has sole discretion in establishing fines and/or penalties. Each violation will be considered individually on a case by case basis. The fine schedule established herein is to be considered as a guide only, amounts may vary depending on the particular circumstances of the violation. 7

6. The Board of Directors recognizes non-payment of dues and assessments as a serious infraction warranting special fines as penalty if the non-payment requires the filling of suit against the delinquent member. The fines shall be levied according to the following fine schedule and will be in addition to other penalties if suit is filed by the Club. Prior to filing suit, the Club will provide the delinquent member with notice by first class mail of his outstanding delinquent dues, assessments and penalties and will give the member a minimum of thirty (30) days to pay that amount before the below fines are assessed. First Year Delinquent $25.00 Fine Second & Third Years Delinquent $75.00 Fine Fourth & Fifth Years Delinquent $100.00 Fine More than Five Years Delinquent at the discretion of the Board, not to exceed $250.00/lot. 8