AMENDED AND RESTATED RULES AND REGULATIONS FOR PALM HILL VILLAS HOMEOWNERS ASSOCIATION, INC.

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AMENDED AND RESTATED RULES AND REGULATIONS FOR PALM HILL VILLAS HOMEOWNERS ASSOCIATION, INC. These Amended and Restated Rules and Regulations for Palm Hill Villas Homeowners Association, Inc. (hereinafter referred to as the Rules and Regulations ) were adopted by the Board of Directors at duly noticed meeting held on September 10, 2013. This is a substantial revision of the Rules and Regulations, as they have been previously amended, and should be considered and read in its entirety. 1. Definitions. As used herein, a. Declaration shall mean the Declaration of Covenants, Conditions, and Restrictions and Party Wall Agreement of Palm Hill Villas, a Patio-Villa Community, Palm Beach County, Florida, as recorded in Official Record Book 3371, Page 1, of the Public Records of Palm Beach County, Florida, as it may have been amended from time to time. b. Association shall mean Palm Hill Villas Homeowners Association, Inc. c. Owner shall refer to an owner as that term is defined in Chapter 720, Florida Statutes, or the Declaration, which ever definition better suits the purpose and enforcement of these Rules and Regulations or the particular provision concerned, and shall apply to the singular or plural. d. Resident shall refer to the person(s) residing in a Patio-Villa whether that person or those persons be the Owner, the Owner s tenants, guests, visitors, relatives, a trespasser or otherwise. e. Pet shall mean a dog or cat of a domesticated breed weighing less than forty (40) pounds. f. Animal shall mean any animal not defined as a Pet. g. Resident s courtyard and Owner s courtyard shall refer interchangeably to the courtyard attached to an Owner s Patio-Villa or to the Patio-Villa within which the Resident resides. 2. Owners shall remain liable for all acts of their Residents, their Resident s family, servants, employees, agents, visitors, licensees, Pets or Animals, including those which violate these Rule and Regulations. 3. Nuisances and Disturbances. No Resident shall create, make or permit, a. any disturbance that will interfere with the rights, comforts or, convenience of others, regardless of whether such disturbance is caused or related to a person, machinery, vehicle, Pet, or Animal. No nuisances will be permitted by any Resident or Resident s Pet.

b. any disturbing noises by the Resident or Resident s family, servants, employees, agents, visitors, licensees, Pets, or Animals c. any conduct by such persons, Pets or Animals that will interfere with the rights, comforts or conveniences of other Residents d. any playing or operation of any musical instrument, phonograph, television, radio, sound amplifier, or any other sound-emitting device within a Patio-Villa or on the common or limited common elements in such a manner as to disturb or annoy other Residents. 4. Residents shall be limited to two (2) Pets per Patio-Villa. No other Pets or Animals will be permitted. Offensive, aggressive, or violent Pets or Animals may be directed to be removed by the Association after 14 day written notice to the Resident and Owner. Notwithstanding this limitation on Pets and Animals, Residents shall, a. Keep all Pets and Animals on a physical leash (as opposed to wireless, radio or verbal devise) of no longer than six (6) feet, at all times when not confined within the Resident s Patio-Villa or courtyard. b. Not walk, exercise, or rest Pets or Animals on grass other than immediately surrounding Residents courtyard. c. Pick-up, remove and properly dispose of all waste from Pets or Animals immediately. 5. Residents shall not deposit garbage, refuse, trash or rubbish except as permitted by the Association. Residents shall comply with the requirements of the company or agency providing trash removal services for disposal or collection, even as those requirements change from time to time. Residents shall keep all equipment for storage or disposal of such material in a clean and sanitary condition. Residents shall not place any receptacles roadside before the day of pick-up, and shall remove them from the roadside the day of pickup. Residents shall store all receptacles so as to not be visible from the street when not properly placed roadside. 6. Outdoor cookers, stoves, and grills, and other food preparation or storage devices shall be used in courtyards only, and, when not in use, properly and safely stored out of view from outside the courtyard. 7. No articles including patio-type furniture shall be placed on the balconies or terraces or other common elements or limited common elements.. No linens, cloths, towels, clothing, bathing suits or swim wear, curtains, rugs, mops, or laundry of any kind, or other articles, shall be shaken, dusted or hung from any of the windows, doors, balconies or terraces or other portions of the Owner's Patio-Villa, the common elements, or the limited common elements, or left on a balcony or terrace, except within Owner's courtyard below height of the Owner's fence. Balconies or terraces may not be used as storage areas (except for any built-in storage space which Inc. - Page 2 of 9

is part of the terrace or balcony). No Resident, their tenants, occupants, guests, nor invitees shall permit anything to fall from a window, balcony, or door of any Patio-Villa, nor sweep or throw from any Patio-Villa any dirt or other substance onto or from any of the balconies or elsewhere in the buildings or upon the common elements or limited common elements. 8. Employees, contractors, property managers, vendors, attorneys and other agents of the Association are not to be sent out by Owners or their tenants, occupants, guests, or invitees for personal errands. The Board of Directors shall be solely responsible for directing and supervising the property manager and employees of the Association. The property manager shall be soley responsible for directing and supervising vendors, contractors and other agents of the Association. 9. There shall be no assembling or disassembling of motor vehicles except for ordinary maintenance such as the changing of a tire, oil, etc. All such repairs must be done inside a garage; no repairs shall be performed on the street or driveways. Any carpet or other material used to catch motor vehicle fluids shall be removed and shall not be permitted on the driveways immediately after changing such fluids. 10. All motor vehicles, vessels, trailers, or other devices used for the carriage of people or cargo, must be maintained so as to not create an eyesore in the community. Whether a vehicle meets the classifications below or is an eyesore shall be determined by the Board of Directors, in its sole and absolute discretion, which discretion shall be exercised in a uniform fashion. The following shall not be permitted to park overnight within the land area governed by the Association, unless parked completely within a closed garage, between the hours of 1:00AM and 7:00AM, local time, whether owned, leased, borrowed, or constitutes a work vehicle of an Owner, Resident, or their guests, invitees, employees, or agents, and regardless of how actually used, a. Boats or other watercraft; b. Aircraft; c. Trailers; d. Recreational vehicles, including trucks with campers mounted in the bed; e. Buses; f. Vans with less than two (2) windows on each of the passenger and driver sides, or which are used for any commercial purpose; g. Commercial vehicles, defined as any vehicle, other than marked law enforcement vehicles, which, i. Contains markings, logos, signs, or other advertisement or identification of a commercial or government activity, for profit or otherwise, and/or, Inc. - Page 3 of 9

ii. Contain or have equipment, tools, supplies, or otherwise, mounted, attached to or hanging from the vehicle, or protruding from within the vehicle s interior, unless same would not be visible by a person six (6) feet in height standing on the crown of the road regardless of the parking orientation of the vehicle (backed in or otherwise); 11. With regard to these Rules and Regulations, children will be the direct responsibility of their parents, legal guardians, the Resident and Owner of the Patio-Villa occupied by the children, or the Resident to whom the children or their parents are visitors, guest, tenants or invitees, including full supervision of them while within any common or limited common elements and including full compliance by them with these rules and regulations and all other rules and regulations of the Association. Loud noises will not be tolerated. All children under twelve (12) years of age must be accompanied by a responsible adult when entering and/or utilizing the recreational facilities. 12. The Pool Area is closed, and the gates shall be locked, between dusk and dawn, everyday unless otherwise directed by the Board of Directors. Parking at the Pool Area is restricted to users of the Pool Area and only while actually using the Pool Area. All Residents, Owners, and their guests, visitors, tenants, and invites, shall abide by all rules posted in and around the Pool Area by the Board of Directors. 13. Residents and their guests, visitors, tenants and invitees must use only those parking spaces assigned to that particular Patio-Villa. Parking in other assigned spaces, on the grass surrounding the Patio-Villa structures, on or across common areas, within the cul-de-sac's or at the Pool Area when not actually using the Pool Area, is not permitted and will result in the vehicle being towed away at the Resident s and Owner s expense. 14. All Residents, Owners, their tenants, occupants, visitors, guests, or invitees of dwellings in Palm Hill Villas shall abide by the Declaration, the Articles of Incorporation, the Bylaws, these Rules and Regulations, and chapter 720, Florida Statutes. 15. Transfers. a. Leasing. i. Patio-Villas shall not be leased without the prior written approval of the Association. The Association has the right to require that a substantially uniform form of lease be used, as approved by the Board of Directors, and to charge an administrative/application fee, in an amount determined by the Board of Directors from time to time. Any lease shall provide that the Association shall have the right to terminate the lease upon default by tenant, the tenant s guest, invitees, and visitors, in observing any of the provisions of the Declaration, and the Articles of Incorporation, Bylaws, these Rules and Regulations, and chapter 720, Florida Inc. - Page 4 of 9

Statues, as any of them may be amended from time to time. No lease shall be for a period of less than six (6) months, and the number of proposed tenants shall not exceed those permitted by any applicable zoning law. Subleases of Patio-Villas are prohibited. Patio-Villas shall not be leased more than once in any six (6) month period. ii. Notwithstanding the lease of a Dwelling, all liabilities of the Owner to the Association shall continue unabated. iii. The Association must either approve or disapprove a lease within ten (10) days after the next Board meeting following submission of a complete and accurate request for approval, which request shall be accompanied by such information as the Board may reasonably require. If approved, a recordable Certificate of Approval shall be executed by the Secretary or other authorized agent of the Association at the expense of the tenant. If the Association fails to give the Owner written notice of its approval or disapproval of the proposed lease within the aforesaid period, the lease shall be deemed acceptable to the Association. iv. At the discretion of the Association, Owners wishing to lease their Patio-Villa shall be required to place in escrow with the Association a sum (which shall not be deemed a security deposit), as determined by the Association, which may be used by the Association to repair any damage to the common elements or other portions of the property resulting from acts or omissions of tenants (as determined in the sole discretion of the Association). The Owner will be jointly and severally liable with the tenant to the Association for any amount in excess of such sum which is required by the Association to effect such repairs or to pay any claim for injury or damage to property caused by the negligence of the tenant. Any balance remaining in the escrow account, less an administrative charge as determined by the Association, shall be returned to the Owner within thirty (30) days after the Association has been advised in writing by the Owner that the tenant and all subsequent tenants have permanently vacated the Dwelling. v. The Association is hereby deemed the agent of the Owner for purposes of bringing any eviction proceedings deemed necessary by the Association because of tenant's violation of the Declaration and the Articles of Incorporation, Bylaws, these Rules and Regulations, and/or chapter 720, Florida Statutes, as any of them may be amended from time to time. The Association and the Owner shall both have the right to collect attorneys' fees against any occupant or tenant whether or not suit or arbitration is instituted against such tenant for eviction or for enforcement of Declaration and the Articles of Incorporation, Bylaws, these Rules and Regulations, and/or chapter 720, Florida Statutes, and in any such litigation or arbitration, the prevailing party is entitled to reasonable Inc. - Page 5 of 9

attorney s fees and costs from the non-prevailing party as determined by the court, whether at the arbitration, trial or appellate levels, and whether in the main action or in an ancillary proceeding, including one to determine the amount of attorney s fees. As between the Owner and Association, the Association shall have priority as to the full amount of its claim and a lien against the Patio-Villa for said amounts. b. Other Transfers. There shall be no restriction on the right of any Owner to sell, convey, mortgage or transfer his Patio-Villa. Voluntary inter vivos transfers are subject to the prior approval of the Association, which approval will not be unreasonably withheld. Upon transfer, every transferee Owner must notify the Association of the purchase or acquisition of the Patio-Villa by providing the Association with a copy of the deed whereby the Owner acquired title to his Patio-Villa. Any deed or conveyance to an Owner shall automatically be deemed to provide that the acceptance thereof by the grantee shall constitute an acknowledgement and assumption of and agreement with the provisions of the Declaration, and the Articles of Incorporation, Bylaws, and these Rules and Regulations, as each may be amended from time to time. Any Owner shall be free to convey or transfer his Patio-Villa by gift, to devise his Patio-Villa by will, or to have his Patio-Villa pass by intestacy, without restriction; provided, however, that each succeeding Owner shall be bound by, and his Patio-Villa subject to, the provisions of the Declaration, and the Articles of Incorporation, Bylaws, and these Rules and Regulations, as each may be amended from time to time. Nothing in this paragraph 15 or these Rules and Regulations shall be deemed to release any or all Owners from their financial obligations to the Association pursuant to the Declaration, and the Articles of Incorporation, Bylaws, and these Rules and Regulations, and chapter 720 of the Florida Statutes, as any or all may be amended from time to time. 16. No "For Sale, For Rent" or other real estate or other type of sign shall be visibly placed upon any Patio-Villa or common or limited common element, including inside a window where such placement would permit the sign to be viewed from outside the Patio-Villa. 17. Residents and Owners who are or plan to be absent from the Patio-Villa during the hurricane season, a. Shall prepare the Patio-Villa prior to departure; and, b. Shall designate a responsible person to care for the Patio-Villa should a hurricane threaten the Patio-Villa or should the Patio-Villa suffer hurricane damage; and, c. Shall furnish the Association with the name(s) of such designated person who shall be subject to the approval of the Association. 18. Fines. To the extent permitted by law, as amended: Inc. - Page 6 of 9

a. The Association may levy reasonable fines of up to $100 per violation against any Owner, Resident, the Owner s or Resident s tenant, guest, occupant, or invitee for the failure to comply with Declaration, Articles of Incorporation, By-laws, these Rules and Regulations, and/or chapter 720, Florida Statutes. A fine may be levied for each day of a continuing violation, with a single notice and opportunity for hearing, except that the fine may not exceed $1,000 in the aggregate unless otherwise provided in the governing documents. The Association is entitled to its attorney s fees and costs of collection incurred in collecting any fine, and in any litigation or arbitration instituted to recover a fine, the prevailing party is entitled to reasonable attorney s fees and costs from the nonprevailing party as determined by the court, whether at the arbitration, trial or appellate levels, and whether in the main action or in an ancillary proceeding, including one to determine the amount of attorney s fees. b. The Association may suspend, for a reasonable period of time, the right of a member, or a member s tenant, guest, or invitee, to use common areas and facilities for the failure of the Owner of the parcel or its occupant, licensee, or invitee to comply with any provision of the declaration, the association bylaws, or reasonable rules of the Association. c. A fine or suspension may not be imposed without at least 14 days notice to the person sought to be fined or suspended and an opportunity for a hearing before a committee of at least three members appointed by the Board who are not officers, directors, or employees of the Association, or the spouse, parent, child, brother, or sister of an officer, director, or employee. If the committee, by majority vote, does not approve a proposed fine or suspension, it may not be imposed. If the Association imposes a fine or suspension, the association must provide written notice of such fine or suspension by mail or hand delivery to the parcel Owner and, if applicable, to any tenant, licensee, or invitee of the parcel Owner. d. If a member is more than 90 days delinquent in paying a monetary obligation due to the Association, the Association may suspend the rights of the Member, or the Member s tenant, guest, or invitee, to use common areas and facilities until the monetary obligation is paid in full. This subsection does not apply to that portion of common areas used to provide access or utility services to the parcel. Television broadcast or cable signals are not to be deemed utilities for purposes of this paragraph. Suspension does not impair the right of an Owner or tenant of a parcel to have vehicular and pedestrian ingress to and egress from the parcel, including, but not limited to, the right to park. The notice and hearing requirements under subsection (2) do not apply to a suspension imposed under this subsection. e. The Association may suspend the voting rights of a parcel or member for the nonpayment of any monetary obligation due to the Association that is more than 90 Inc. - Page 7 of 9

days delinquent. A voting interest or consent right allocated to a parcel or member which has been suspended by the Association may not be counted towards the total number of voting interests for any purpose, including, but not limited to, the number of voting interests necessary to constitute a quorum, the number of voting interests required to conduct an election, or the number of voting interests required to approve an action under this chapter or pursuant to the governing documents. The notice and hearing requirements under subsection (2) do not apply to a suspension imposed under this subsection. The suspension ends upon full payment of all obligations currently due or overdue to the association. f. All suspensions imposed pursuant to subsection (2) or subsection (3) must be approved at a properly noticed meeting of the Board of Directors. Upon approval, the Association must notify the Owner and any other Residents or persons against whom a suspension has been imposed by mail, commercially acceptable courier service, or hand delivery. g. Nothing herein shall be continued as a prohibition of or a limitation on the right of the Association to pursue other means to enforce the provisions of the various homeowner and Association s documents: including, but not limited to, legal action for damages of injunctive relief. 19. The sidewalks, entrances, passages, lobbies and hallways and like portions of the common elements shall not be obstructed nor used for any purpose other than for ingress and egress to and from the Patio-Villas nor shall any carts, bicycles, carriages, chairs, tables or any other objects be stored therein, except in areas (if any) designated for such purposes. 20. No flammable, combustible or explosive fluids, chemicals or substances shall be kept in any Patio-Villa or on the common or limited common elements except such as are commonly and routinely used for household purposes. 21. No window air-conditioning Patio-Villas may be installed by Owners, Residents, their tenants, occupants, guests, or invitees. No Patio-Villa shall have any aluminum foil placed in any window or glass door or any reflective or tinted substance placed on any glass, unless approved, in advance by the Board of Directors in writing. No unsightly materials may be placed on any window or glass door or permitted to be visible through such window or glass door. 22. Holiday decorations and lighting may be may only be displayed outside Patio- Villas or visible from outside Patio-Villas for thirty (30) days prior to and thirty (30) days after the particular holiday. 23. No persons are permitted on the roofs of any building without the explicit permission of the Association. Any construction of any type performed or authorized by an Owner must strictly comply with all federal, state, and local building and fire safety codes. 24. No Patio-Villa may be used for commercial purposes whatsoever, except that, Inc. - Page 8 of 9

a. A home-office, where no products are manufactured, no clients or customers visit, no non-resident employees labor, and minimal commercial deliveries are received, shall be not be considered used for commercial purposes for purposes of this paragraph, and; b. Leasing a Patio-Villa shall not be deemed a commercial purpose if the Patio-Villa, Owner and Resident are otherwise in compliance with the Declaration, Articles of Incorporation, Bylaws, these Rules and Regulations and chapter 720, Florida Statute, as each may be amended from time to time and as each relates to leasing and occupancy of a Patio-Villa. 25. With regard to (1) television antenna, (2) satellite dish, (3) other external over-theair signal reception device, a. No Patio-Villa shall have more than one of the foregoing devices; and, b. No such device shall be installed or permitted to be installed on common elements; and, c. The installation of such devices on a Patio-Villa must be first approved by the Association after written application by the Owner, which application shall include all necessary information for the Association to render a decision, such as, but not limited to, plans and specifications. 26. The pool and tennis court areas are for the exclusive use of Residents, their tenants, occupants, guests, and invitees only. Access to these areas are by way of key only and are available for use only during published times. No food is permitted in these areas at any time. 27. In the event of a conflict between or among any of the following, the terms of most recent Laws of Florida, Florida Statutes, Florida Administrative Code, the Declaration, the Articles of Incorporation, Bylaws, and these Rules and Regulations, shall control in the descending order listed in this sentence. 28. Any reference to the Florida Statutes, the Florida Administrative Code, the Declaration, and the Articles of Incorporation, Bylaws, and these Rules and Regulations, shall mean as same are amended from time to time, and same shall be controlling upon all Owners, Residents, or other persons, to which those laws, rules, or documents apply. 29. Should the Association need to hire an attorney to enforce or protect the rights of the Association or any Owner(s) provided to the Association or the Owners in these Rules and Regulations, the Association shall be entitled to reimbursement of said fees from the offending Owner(s), whether suit is filed or not. This is a substantial revision of the Association's current Rules and Regulations, as it has been previously amended. Inc. - Page 9 of 9