APPROVED SCHEDULE OF MONETARY PENALTIES. CHANGES EFFECTIVE: July 1, 2018

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1 APPROVED SCHEDULE OF MONETARY PENALTIES Changes Approved: April 14, 2018 Notice of Adoption: April 25, 2018 CHANGES EFFECTIVE: July 1, 2018 Changes Proposed by: The Board of Directors and Administration Purpose of Changes/Change Key: The purpose(s) for each change to the Schedule of Monetary Penalties is indicated by numbers in brackets at the end of each item. These numbers will be removed prior to publishing the final, approved version. Change Key [1] Updates in Column 1, Rule or Regulations to better describe the action or situation being referenced in Column 2, Description. Whenever appropriate the actual language in the Membership Handbook - Rules and Regulations ( Rulebook )is used. [2] Updates in Column 2, Description now feature the actual Section and/or Rule title as well as the number used in the Rulebook The intent is to, whenever possible, eliminate words that interpret or embellish the rule/title and to create a direct link to the source document - The Rulebook. This will provide clarity for members and more accurate data if a written violation is issued. [3] Penalty Amount Changes: The purpose(s) of penalty amount changes are: 1) to encourage member cooperation/compliance and 2) to better reflect the severity of a given violation. [4] Timeframes Added - Where possible entries such as: DAILY, WEEKLY, PER EVENT OR TO BE REVIEWED (interval) were added. The intent is to inform members and to assist with consistent enforcement. [5] Correct errors from previously adopted Schedule(s) of Monetary Penalties. [6] Correct errors from previously adopted Rules and Regulations. [7] Changes and Deletes that correspond with proposed Rules and Regulations modifications. [8] New Penalty associated with a proposed New Rule. [9] Entry Removed because of 1) redundancy or consolidation with another entry, or 2) not a violation of HROA rules (e.g. law enforcement matters). [10] Footnote removed (no longer applicable), added or edited. 1

2 APPROVED SCHEDULE OF MONETARY PENALTIES All CC&Rs and Association Rules and Regulations will be enforced equitably by the Board of Directors and staff. The process of enforcement may involve any combination of corrective, restrictive or financial measures. This Schedule of Monetary Penalties has been adopted by the Board of Directors as the current enforcement policy. Corrective Measures: The Association has the right to correct certain property violations on lots within Heritage Ranch and bill the property owner after proper notice has been given. The Association has the right to bill the responsible property owner for repairs for damages caused to Heritage Ranch property by any owner, their tenant(s) or their guest(s). Restrictive Measures: The Association has the right to deny entry to any guest deemed to be a nuisance or threat to the community. The Association has the right to deny use of any or all amenities to any owner (member), tenant or guest deemed to be a nuisance or threat to the community, or whose privileges are revoked for non-payment of monies owed. Financial Measures: The Association has the right to issue citations for violations of any CC&R provision, Rule or Regulation and after a hearing, assess such fines according to the following schedule and/or deny use of any or all amenities to any owner (member), tenant or guest for any owner (member) whose s [5] privileges are revoked. RULES AND REGULATIONS, AND CC&R CITATION SCHEDULE Description -- Refer to the HROA Membership Handbook (Rules & Regulations) Fine Rule or Regulation for detailed information Amount Allowed Residents Illegal Tenant; Proof of Residence at Heritage Ranch Occupancy in $ Tenant [1] owner s residence without adhering to Tenant Policy [2,8] Illegal Entry Permanent; General; Permanent Guest List; Contractors & Others; Entrance and Exit - Use -- Unauthorized entry is $25.00 [3] prohibited [2] Aiding Illegal Entry , -- Permanent; , -- General; Permanent Guest List; Contractors & Others; Entrance and Exit - Use -- Aiding and abetting unauthorized entry is prohibited Altering Common Area No Altering of the Common Area without permission of the Association [2] $500.00* Abuse of HR Employee Conduct (FINED PER EVENT) Vulgar, profane, abusive or threatening language or gesture toward an HROA employee [2,4,7] Curfew for Minors Curfew for Minors Minor may not be out after 11 pm Friday-Saturday; or 10 pm Sunday-Thursday [2] $ Disturbing the Peace Disturbing the Peace Disturbing or disrupting peace of others prohibited. Unreasonable annoyance on lot or common area. [2] Firearms and Weapons Firearms and Weapons Use (discharging) and unauthorized carrying of a firearm (loaded or concealed), pellet, pump or BB guns prohibited on common area $ [2] Open Fire where not allowed [1] Fires No open fire allowed. Fires in designated campground bbq pits only, as specified. [3] Fireworks Fireworks Use of fireworks on the Ranch is prohibited [2] $ to $1,000.00* Home Occupation Home Occupation (FINED WEEKLY) Business out of home not in compliance (2, 4) Illegal Dumping Illegal Dumping; Altering the Common Area No dumping of any In Common Areas kind allowed, expense of removal added to fine (2,3) $500.00* Indecent Exposure / Public Indecent Exposure/Public Urination Acts of Exposure and/or Public Urination Urination [2] $ Livestock and Equine Livestock and Equine (FINED DAILY) Animal loose on Ranch Minor/Possessing Alcohol Minors Possessing Alcohol Minor may not partake of alcoholic beverage in public. [2] Adult Furnishing Alcohol to Minor Furnishing Alcohol to Minors Adult may not furnish a minor (under age twenty-one (21)) an alcoholic beverage on RANCH property. [2] $ [3] Noise Curfew Noise Curfew Loud Noise or amplified music on the RANCH between 10 pm and 6 am [2] $ Pets Contractor s Dog [1] Pets A contractor is not allowed to bring their dog onto Ranch property. [2,7] Impounding of Dog [9] A dog that is held by the Association for any period of time (per each 24 hour period, or minimum) [9] [9] Barking or Nuisance , Dog continuous barking, owner not cleaning up after dog, or other Animal [9] nuisance [9] [9] Campground Pets [1] , Campground Pets -- Number and type of pets authorized, unattended Animal Regulation dog at campground [2] Unleashed Dog [9] , Unleashed dog in common area is prohibited [9] 2

3 No Soliciting [1] Soliciting (FINED PER EVENT) No door-to-door disturbance/sales Theft of Association Theft of Association Property Found in possession of stolen goods while on Property [1] Ranch property [2,7] $1, Vandalism, Graffiti, Littering to Vandalism, Graffiti, Littering Acts of vandalism or graffiti that causes damage, $1,000.00* or littering [2] [3] Wildlife Wildlife shall not be disturbed or removed [2] Intentional Cruelty to Wildlife [9] Anyone caught inflicting harm or destroying wildlife species [9] $ [9] Refuse Containers / Refuse Collection (FINED AFTER COLLECTION DAY) Containers/Appliances Appliances Association Registration Vehicle Not in HROA System [1] Vehicle Decals & Placards Member Lane Expired Decal [1,8] Vehicle Operation Off- Road [1] Valid License Unlicensed Driver [1] not to be put out before 6 am day before or past 6 am day after collection Registration with the Association. Vehicle must be registered to an owner s property on the Ranch (plus cost to trace for identification if the vehicle needs to be traced for a violation) [2] Vehicle Decals, A: Temporary Placards; Vessel Decals, Use Member Lane for current vehicle and vessel decals only [2,8] Vehicle Equipment and Operability; Golf Carts and Bicycles -4 No off-road vehicle allowed on roads or common area [2] * Operation - License of vehicle (motor, electric or battery) have valid license [2] Operation Speed Limit of vehicle (motor, electric or battery) observe speed Excessive Speed limits [2] Operation Speed Limit in a school zone. of vehicle (motor, electric or battery) Excessive Speed $ to dangerous in School Zone. Speeds of mph = $70.00 per incident; over 35 mph = in School Zone [3] per incident [2] Failure to Stop at Sign [1] Operation Stop Signs of vehicle (motor, electric or battery) complete stop [2] Exhibition of Speed Operation Exhibition of Speed of vehicle (motor or battery) dangerous or Unsafe Driving [1,7] unsafe [2,7] Driving/Parking in Common Area/Trails Driving/Defacing Common Area [9] Driving While Intoxicated Failure to Stop for Security Ranch Patrol [1] Reckless Driving Vessel Not in HROA System Non-payment of Usage Fees Parking Violation/Handicap Operation Off Road Operation Vehicle driving or parking on open space common area (non-designated roadways) common area; trails [2] to $500.00* [3] Vehicle defacing or trail blazing in common area, or damage to roads [9] $500.00* [9] Driving While Intoxicated Arrested (and convicted) by Law Enforcement on common area with HROA Security assistance [2] Operation - Failure to Stop for Ranch Patrol as directed by rotating amber light / blue light on Security vehicle [2,7] Operation Reckless Driving Used when there are three or more simultaneous/consecutive driving violations in the same incident [2,7] Registration with the Association. (FINED PER EVENT) Vessel must be registered to an owner s property on the Ranch (plus cost to trace for identification if the vessel needs to be traced for a violation) Guest Vessel Registration; Facilities to Rent (FINED PER EVENT) (Use of facilities (exclusive) without payment of fees (plus cost of fees) Parking Disabled Designation Vehicle parked in designated handicap space without appropriate identification [2] Parking Guest Area Designation for Tract 475; Parking Oversized and Commercial Vehicles and Trailers; Parking Parking Lots, Overflow and Temporary Parking Areas; Parking for Sale; Parking and Storing Inoperable Vehicles; Parking and Storing Road Right of Way/Common Area (FINED PER EVENT) $500.00** [10] $ * * Parking Violations [1] Illegal Camping Storing of Vessel / Trailer, Camper, RV -6, Vehicle parked not to interfere with traffic. No double parking (parking adjacent to another vehicle). Vehicle in no parking area. Oversized vehicle restrictions. Vehicle parked on common area with intent for sale. Vehicle must be parked in designated spaces in paved parking lots. Vehicle parking within the Association s unpaved portion of the right-of-way (off the road surface) is intended for temporary purposes only not to exceed 72 consecutive hours without moving (does not include the front yard setback maintained by the property owner) Illegal Camping (FINED PER DAY) No camping on lot or common area without permission [2,4,7] Parking and Storing Vessels/Trailers, Campers and RVs for Tracts 424, 446 and 474; Parking and Storing Vessels/Trailers, Campers and RVs for Tracts 452, 693, 721, 1063, 1094 and the 20 Acre Parcels; Parking and Storing Vessels /Trailers, Campers and RVs for Tract 475; Parking and 3 $50.00* [3]

4 Inoperable Vehicles Lot Stripped/Junked/ In-op Vehicle [1] Storing in Road Right-of- Storing Vessels/Trailers, Campers and RVs for Tracts 1910 and 1990 (FINED PER EVENT) Parking, storing of vessel / trailer, camper or RV not within regulations Parking and Storing - Inoperable Vehicles (FINED PER DAY) No stripped down, junked vehicle parked or stored Parking in unpaved areas restricted to seventy-two (72) hours. After Way / Common Area [7,9] seventy-two (72) hours considered storing [7,9] [7,9] Driving/Parking Parking and Storing - Vacant Lots (FINED PER DAY) Vehicle driving or on Vacant Lot parking on owner s vacant lot $25.00*[2,3] Lot -- Parking / Storing Parking and Storing (FINED PER DAY) Park in designated areas, not on landscaping Lot AEC Violation [9] ,4,5 Maintain job site; or project completion deadline [9] What Needs Prior Approval? - New home and construction projects New AEC Approval for New home construction must receive approval from AEC Committee prior to commencing work Home Construction [1] $500.00*[3,8] AEC Approval for Improvements General [1] What Needs Prior Approval?- Improvement Projects (FINED PER WEEK) Construction that must receive approval subject to a fine if commenced prior to approval being granted AEC Construction [9] Failure to contain construction activities within the lot [9] Construction Curfew (FINED PER DAY) hours 7 am-9 pm, Saturday- Lot -- Construction Curfew Sunday 8 am-5 pm AEC Job Site Condition Maintain an Orderly Job Site. (FINED PER DAY) A portable toilet is Portable Toilet [1] required on the job site during new home construction A dumpster (or trash trailer) is required on job site during new home AEC Dumpster [9] construction [9] Accessory Buildings / Outbuildings for Tracts 424, 446, 452, 474, 475, 693, 721 and 1094; Accessory Buildings / Outbuildings for Tract 447; Accessory Buildings / Outbuildings for Tract 1063; Accessory Buildings / Lot Accessory Building Outbuildings for the 20 Acre Parcels; Accessory Buildings / Outbuildings for Tract 557; Accessory Buildings / Outbuildings for Tracts 1910 and 1990 (FINED PER DAY) Accessory Building / Outbuilding regulations AEC Ordinances Lot Canopies; must be within regulations Flags; Radio Canopy [1] Antennas; Satellite Dishes; Signs; Solar Panels [2] Lot -- Illegal Sign [9] Display of unauthorized signage [9] [9] New Home Construction Deposit: Mandatory Inspections; A -- No NEW: AEC - New Home Set-back Inspection - $1, will be forfeited; B -- No Driveway Approach $1,000 to Construction Deposit Inspection - $1, will be forfeited; C -- No Final Inspection No refund $3,000* [8] Forfeiture of construction deposit. [2,8] NEW: Holiday Decorations NEW: Memorials Lot Groundcover / Landscape / Maintain Lot Maintain Trees Lot Address Numbers Required Lot Trash, Rubbish, Garbage Lot Fire Hazard Removal Weeds / Debris [1] ADD: AEC - Propane Tanks [1,6] NEW: Unsightly [8] Campground Violation Campground Illegal Fire or BBQ Holiday Decorations (TO BE REVIEWED WEEKLY FOR POSSIBLE Memorials on HROA Property (TO BE REVIEWED WEEKLY FOR POSSIBLE Maintenance; Road Easements; Landscape Miscellaneous (TO BE REVIEWED MONTHLY FOR POSSIBLE ASSESSMENT OF FINE), 7, 8 Landscaping must be maintained including unpaved front easement Trees Required (TO BE REVIEWED MONTHLY FOR POSSIBLE ASSESSMENT OF FINE) Minimum number of trees required to be planted and maintained Address Numbers Required (TO BE REVIEWED MONTHLY FOR POSSIBLE ASSESSMENT OF FINE) Lot to have address numbers visibly displayed Trash, Rubbish, Garbage (TO BE REVIEWED MONTHLY FOR POSSIBLE ASSESSMENT OF FINE) No trash, rubbish, garbage to be left on lot Vacant Lots Fire Hazard Removal (TO BE REVIEWED MONTHLY FOR POSSIBLE ASSESSMENT OF FINE) Lots general clean-up and mowed for fire season Screening Standard for Propane Tanks (TO BE REVIEWED MONTHLY FOR POSSIBLE ASSESSMENT OF FINE) [2,4,6] Unsightly: Overgrown or Dead Vegetation; Unsightly: Accumulation of Items; Unsightly: Animal Waste; Unsightly: Storing Items Outside; Unsightly: Trash and Garbage; Unsightly: Unmounted Campers and Camper Shells; Unsightly: Structural Conditions (TO BE REVIEWED WEEKLY FOR POSSIBLE ASSESSMENT OF FINE) [4,8] General Matters (FINED PER DAY) Use of campgrounds to be within regulations Fires and Barbeques (FINED PER DAY) Illegal fire or BBQ in campground area $25.00 [8] $25.00 [8] [3,6] [8] *

5 Marina -- Personal Canopies and Personal Property; Courtesy Dock (FINED PER Property Canopies [1,7] DAY) May not be erected overnight between 2 am and 5 am [2,4,7] Floating Docks and Boat Slips; Launch Ramp (FINED PER DAY) Marina -- Courtesy No fishing, jumping, diving, swimming, loitering or bicycling on or around Dock/Launch Ramp/Boat courtesy dock, launch ramp or boat slips. Must cooperate with mussel inspection Slips personnel [2,7,4] Marina -- Parking Marina Parking (FINED PER DAY) -- Vehicle parked in Marina area without current decal Marina -- Private Dock Private Docks - See Private Dock Policy for details (FINED PER DAY) Private dock violation Marina Watercraft on Shore Watercraft on Shore (FINED PER EVENT) may temporarily be left Marina -- Mussel Mussel Inspections (FINED PER EVENT) Must cooperate with mussel Inspections [1] inspection personnel NEW: Marina -- Guest Marina Guest Cards (TO BE REVIEWED MONTHLY FOR POSSIBLE Cards [1,8] [8] Pool, Court, Park, Play Swimming Pools; Tennis, Basketball and Pickleball Courts; Parks and Play Areas (FINED PER EVENT) Violation of posted or written rules Equestrian Rules See Equestrian Rule Book for details [2] Varies Judge may double any fine for a person who is contempt in court proceedings Contempt of Court Varies [1,6,8] All other violations in Membership Handbook (Rules & Regulations) or CC&Rs. [1,6,] $25.00 CHANGE FOOTNOTE: * Fine in addition to any costs of repair or cost of removal, cost to trace vehicle or vessel trace costs, cost of fees not paid and/or forfeited deposits. [5,8,10] REMOVE FOOTNOTE: ** This revision sets all penalties to be unchanged from the Schedule of Monetary Penalties pending further review and notice regarding proposed changes. [10] ADD FOOTNOTE: ** Fine deferred pending law enforcement action [10] 5

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