PMB 209 9666 East Riggs Road Suite 114 Sun Lakes, Arizona 85248-7410 (480) 895-3268

Sun Lakes Unit 19Homeowners Association

March 1,2004

TO: All Unit 19 Townhouse Owners.

RE: WHAT YOUR HOMEOWNERS ASSOCIATION GIVE YOU IN RETURN FORTHE MONTHLY FEE. "

Since the inception ofthe Unit 19 administrative structure (Board of Directors), following the "turn-over by Robson Communities, Inc., the townhouse owners of Unit 19 have received various bulletins,newsletters and other communications. The intent of these communications has been to inform you ofexisting rules and regulations for living in Unit 19, and to inform you of new rules and regulationsmandated by your Board of Directors. Since most Ofthese communications were not dated, it isimpossible for us to refer you to a publication date, or ask you to refer to it for any kind of clarificationas to who-is responsible for what!

Your Board of Directors, at a regular monthly Board Meeting on May 11,2000, adopted the followingpublication to inform you of the areas your Association covers and the areas you are responsible tocover. We hope this will put us all on the same page, and perhaps clear up some of the misconceptionsthat appear to be held by a few of the to-wnhouse owners.-

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PLEASE BE AWARE THAN A YEAR'S SUPPLY OF SELF-ADDRESSED ENVELOPES HAVEBEEN ENCLOSED IN THE FRONT POCKET OF THIS BINDER, AND WE RESPECTFULLY.REQUEST THAT YOU SIGN THE ATTACHED FORM TO ACKNOWLEDGE TIlAT YOU HAVERECEIVED THIS INFORMATION AND OTHER ENCLOSED PUBLICATIONS. PLEASE SIGNTHE FORM AND RETURN IT AS SOON AS CONVENIENT TO YOU.

Sun Lakes Unit 19 Homeowners Association, Inc operates within theCottonwood/Palo VerdeConstitution and Bylaws, but we also have our own Constitution and Bylaws, as well as our ownBoard of Directors and our own budget. We have an Administrative Manager and a Property Managerwho are available to answer any questions you may have, and our Association phone number is 895-3268. You may leave a message on the 895-3268 number and our Property Manager will get back toyou the next day. For those who want quicker service, call our Administrative Manager at 895-4401.

If you own more than one townhouse, please see that our Administrative Manager is aware of it, andthat he has the name and phone number of the person(s) living in the townhouse.

Thank you for reading this message from your Board of Directors and for responding to it!

Sincerely,

.. r)

Robert T. Bonnes, PresidentSun Lakes #19 Board of Directors

May 11,2000

List of areas covered by Unit 19 Townhouse Association monthly fee, and list of theareas not covered by the Association, and considered the responsibility of each individualtownhouse owner: .

COVERED AREAS:

1. All common areas in and around Unit 19, which includes maintenance of grass, shrubs,trees and the irrigation system.

2. Professional "Bee Service" in the event you experience any swarming of bees around yourtownhouse.

3. Insurance coverage, in the form of a Master Policy which covers buildings, liability, andworkers compensation.

4. Maintenance of all roof areas, excluding additions to original structure, including repair orreplacement of main roof, skylights, shingles, tiles and. drains of the roof, but no glasssurfaces on walls, such as windows or arcadia doors. UNIT 19 DOES NOT COVERroofs of additions to the original townhouse structure, or the skylights that were added tothe atriums.

5. Patio porch and ceilings in-bell towers. We repair arid paint the ceilings on thesestructures if they are part of the original townhouse. Interior ceilings in townhouse arepainted, ifitis a recurring leak.

6. We maintain the outside of all townhouses, which includes stucco 'and wood paint andrepair. We also maintain the stucco walls on your mail box.

7. If your original wood garage door is delaminating or needs to be replaced for some otherreason, your Association will help you replace it by paying up to $350.00 ofthe cost.Contact your Manager and get on the list, if you think your door needs to be replaced.We can only do so many each year, due to budget limitations.

8. We replace or repair original back patio gates ..

9. If a water line breaks between your water meter and the cut-off point on the front of yourgarage, the Association will repair and replace the line at no charge to' you.

10. The Association is governed by a Board of Directors, who operate under a Constitutionand Bylaws of a non-profit corporation. Any taxes levied at the corporation are paid outof the annual budget, as are all other costs of maintaining the property of Sun Lakes Unit19 Homeowners Association. An annual meeting of Unit ·19Homeowners is held inFebruary of each year, only after legal notice has been given to all homeowners, and onemember owner of each townhouse has one (1) vote to cast at this Annual Meeting.Election of officers for the board and an annual report to homeowners are the majorpurposes of this meeting. This is an open forum and a time to air your feelings, both goodand bad.

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AREAS NOT COVERED:

1. Any addition to the original townhouse model, purchased by he original owner. Thisincludes end-unit planters, solar systems, water softener systems, enclosed rooms(Porches) and all add-one.

2. Heating and cooling units, condensate pipes and roof vents, as well as any water pipeconfigurations added as a result of line breaks or leaks.

3. Repair or replacement of gutters on your roof, since gutters were not included on theoriginal structure.

4. Atrium covers, add-on skylights, satellite dishes, windows, screens, awnings, exteriorlight fixtures, iron mailboxes, planters and personal irrigation systems are ALL theresponsibility ofthe homeowner. If you sell your townhouse, this information mustbe passed on to the buyer!

5. All custom carpeted or painted driveways and walkways are the responsibility ofthehomeowner. .

6. All townhouse interior infrastructure is the responsibility of the townhouse owner. Thisincludes all plumbing, electrical, floor and wall overings, as well as window coveringsand maintenance of garage door hardware as well as all other door and window hardware.

7. All sewer and other drain lines are your responsibility (should they plug up). The onlyexception here is if roots of common area trees cause the problem.

8. If any work is done on your townhouse, such as add-on rooms or porches, etc. withoutprior approval from your Architectural Committ and neighbors, the Association will notbe responsible for any coverage!

9. Pest control and termite treatment is the responsibility of the homeowner.

10. Insurance coverage for your personal property, which includes all furniture, floor,window and wall coverings, glass breakage, clothing, etc., are your responsibility. Ifyou have any questions about your insurance coverage, we will refer you to the agent whocurrently covers the Association property.

11. . If you live on the golf course, any damage doneto your townhouse y errant golf ballswill not be covered by the Association. This a matter between you and the golfer!

12. Deductibles on the Association master policy are the responsibility of the homeownerfiling the claim.

f) 13. Areas of coverage in question and/or in dispute, not included on the list, are subj eet to

discussion and decision by the Board of Directors, if not clearly defined 'in theConstitution, Bylaws or CC&R's.

ACKNOWLEDGIvfENT OF RECEIPT OF SUN LAKES UNIT 19:rvLAY 11, 2000 LETTER TO HONfEOWNERS WITH OUTLINEOF AREAS COVERED AND AREAS NOT COVERED BY THE

ASSOCIATION

I have read the above-referenced communication and I understand what the Board of Directors

is attempting to communicate to Unit 19 Townhouse owners. The purpose of signing and

returning this form to Unit 19 is to let the Board know it has been received, and I understand the

Board's position on the matter of "what is covered" and "what is not covered". This does not

in any way imply that I am in full agreement with the Board, or that the mandates by the Board

are "above the law". Simply, that these are rules and regulations set by the Board of Directors

, .i

in an effort to bring uniformity of management to the operation of Sun Lakes Unit 19

Homeowners Association.

NAMEOFHOMEO~R. _

Signed by (1) of the legal owners.

ADDRESS: _

Sun Lakes, Arizona 85248

PLEASE SIGN THIS FORM AND RETURN IN THE ENCLOSED ENVELOPE AT YOUREARLIEST CONVENIENCE. THANKS FOR YOUR COOPERATION!

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Sun Lakes Unit 19HOAPresented By: LeAnn Brum The Mahonev Group Date: 12-11-03

LIMITSS 16,128,000

S 50,000

S 10,000

s 25,000

S 25,000

S 150,000

S 25,000

INCLUDEDINCLUDED

LINE OF BUSINESS I COVERAGESPROPERTY I BUll-DING

• Special Form• Blanket Limit

• Replacement Cost• Agreed Amount

• Bldg. Foundation Included• Per Location Deductible

• Mold & Fungi Exclusion

• Wall & Floor Exclusion• (Attached)

Deductibles:

All Perils $5,000WaterS5,000

Fidelity S2,SOO

CONTENTS

LIMITED TREES & SHRUBS

CO~UTER EQUIPMENT

ACCOUNTS RECEIVABLES &VALUABLE P Al'ERS

FIDELITY·Includes Management Company

SIGNS

BLDG.ORDINANCEfLA WSEWER BACK-UPIDRAINAGE(on premises)

BOILER & MACHINERY NOT INCLUDEDLIABfi.,ITY

• Per Location Aggregate• Hostile Fire• Beating Equipment

Pollution Exception• Blanket Additional Insured• Mold & Fungi Exclusion• Sl,OOO D&O Deductible• Umbrella Does will go over

D&OLlmit

PER OCCURRENCE

GENERAL AGGREGATE

PRODUCTS & COMPLETEDOPERA nONS AGGREGATE

PERSONAL INJURY &ADVERTISING INJURY

FIRE LEGAL

MEDICAL PAYMENTS

HIRED & NON-OWNED AUTO

EMPLOYEE BENEFITS LIAB.

DIRECTORS & OFFICERS(Travelers Stand Alone Polley)

UMRELLA-PBILADELPHIAINS

51,000,000

52,000,000

52,000,000

$1,000,000

S 50,000

S 5,000

Sl,OOO,OOO

Sl,OOO,GOO

51,000,000

515,000,000

INSURANCE COMPANIES: FIREMAN'S FUND INSURANCE COMPANY(A.M. Best Rating: "A") . *TRA VELERS INSURANCE COMPANY

. Federal Insaranee Company$33,946-Packag~ Sl09D-D&O, $4,025 = 539,061 Total Preml

• Coverage presented by andforming a part of Southwest Real Estate Purchasing Onsight inspection. policy provisions exclusion, conditions and deductiblesQuote validfor 60 days and 25% minimum earnedPolicy Accepted (please sign): Dated _

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PMB 209 9666 East Riggs Road Suite 201 Sun Lakes, Arizona 85248-7410 (480) 895-3268

Sun Lakes Unit 19Homeowners Association

UNIT 19 HOMEOWNERS TREE PLANTING POLICY

MEMORANDUM:FROM:DATE:

Ta all HomeownersProperty Manager and Board of DirectorsApri120, 1999

This new policy replaces the "Adopt-a-tree" program for Unit 19 homeowners, as budgetarylimitations prevent the Association from funding replacement trees. The developer plantedhundreds of Eucalyptus, which soon grew into dirty, dangerous and costly trees and we now are .in the process of having to remove them, as they reach the end of their life span.

The Board of Directors has approved homeowners replacing trees but, of course, cannot assumeany warrantee other than staking and tree guards. Improper planting, over-watering, frost and theelements are factors which the Association cannot control and if the tree does not survive, thehomeowner bears the loss.

It is very important that you contact the Property Manager as to type, location and date beforepurchasing or planting any tree, as irrigation and electric lines are everywhere andean be cut or .damaged. Any tree planted between units or in a front yard is either an amenity or liability to yourneighbors, so discuss your plans with them and ifthey are in agreement they may possibly sharethe expense.

Remember, in turf areas over-watering kills more trees than. under-watering. Sprinklers areusually turned off in September for over-seeding, and the trees get NO WATER.

To assist you with the right choice in selecting a tree, here is a list for your convenience:

APPROVED TREES: UNAPPROVED TREES:

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Shamel AshPine treesCarob (male)Peppers (male)N atita Ficus (this is frost -sensitive)Blue Acacias .Queen Palm (for front yards)Bottle Tree (this is very dirty)Arizona OakSouthern Live Oak

Eucalyptus (any type)OliveCitrus (any type)Oleander .MesquitePalo VerdeFan PalmDate PalmSilk OakJacaranda