HOMEOWNERS ASSOCIATION

PROCEDURE

Parties to a dispute requiring ADR must proceed in accordance with the following Internal Dispute Resolution procedures adopted by the Board:

1. Either party shall contact the Management Company to request IDR/Internal Dispute Resolution.

2. The request must be in writing and state a preferred (a) date; (b) time; and (c) location to meet and confer. The request for IDR can be sent by U.S. Mail, email or fax transmission.

3. To resolve the dispute expeditiously, the Management Company shall request the responding party to meet and confer within seven (7) calendar days of receiving the request. The parties will be asked to explain their positions and are expected to meet and confer with a representative of the Management Company in good faith in an effort to resolve the dispute at an early stage.

4. In the event the Management Company is able to resolve the dispute to the satisfaction of the interested parties, the IDR procedures will be deemed to have been satisfied.

5. In the event the Management Company is unable to resolve the dispute to the satisfaction of the interested parties, the matter shall be referred to a neutral mediator. The Management Company shall be responsible for arranging/scheduling a mediator who is satisfactory to all interested parties. If the parties cannot agree on a neutral arbitrator, one will be selected at random by the mediation services provider.

6. If the dispute involves the Association, the Board of Directors shall designate one Director to mediate for the Board.

7. The Mediator, Owner(s) and Designated Director (if applicable) shall meet promptly at a mutually convenient date, time and place.

8. If the parties agree to a resolution of the dispute, a written statement describing the resolution agreed upon shall be signed by the attending participants, i.e. Owner(s), Designated Director, Management Company and/or Mediator and entered in the official Minutes at the following quarterly Board meeting.

Note: If the Association invokes the IDR request, an Owner may refuse to meet and confer by writing "DECLINE" on the face of the original IDR Request, signing and returning it to the Management Company within seven (7) calendar days of receipt. If an Owner invokes the IDR request, the Association cannot refuse the request.

AUTHORITY

This IDRP was duly adopted by the action of the Board of Directors on March 31, 2009 and shall be effective as of April 1, 2009.

The preceding dispute procedure is provided by the Association as mandated by and in compliance with CA Civil Code Section 1362.810 et al. Homeowners are encouraged to review the statute in its entirety or seek independent legal counsel in the event a dispute arises.

Board of Directors

Homeowners Association

Fiscal Year 2013