Section 4.01. Members of Committee. The Architectural Review Committee ("Architectural Committee" or "Committee"), consisting of at least three members is hereby created with the rights and powers set forth in this Declaration. The initial Members of the Committee shall be representatives appointed by Grantor, whose business address is 15052 Springdale Street, Suite A, Huntington Beach, California 92649. Regardless of the fact that Grantor may then have lost voting control within the Association, Grantor shall have the unilateral right And power at all times to appoint or remove a majority of the members of the Committee or to fill any vacancy of such majority until the "turnover date" which hall be the date either (1) on which Close cf Escrow has occurred for the sale by Grantor of ninety percent (90%) of the Condominiums then subject to this Declaration (subject to subsection (2) below, Grantor's rights of appointment hereunder may be reinstated upon annexation of all or part of the Annexable Area pursuant to Article XV), or (2) five (5) years following the date of original issuance of the Final Subdivision Public Report for Phase 1, whichever occurs first. Grantor may at anytime assign in writing such powers of removal and appointment to any Person, subject to such terms and conditions as Grantor may choose to impose. Commencing one (l) year from the original insurance of the Final Subdivision Public Report for Phase 1, the Board shall have the power to appoint one (1) member to the Architectural Committee, until the turnover date. Thereafter, the Board shall have the power to appoint and remove all of the members of the Architectural Committee. Members appointed to the Committee by the Board shall be from the Membership of the Association, but Persons appointed to the Architectural Committee by Grantor need not be Members of the Association.

Section 4.02. Review of Proposed Construction. The Committee shall consider and act upon any and all plans and specifications submitted for its approval under this Declaration and perform such other duties as from time to time shall be assigned to it by the Board, including the inspection of construction in progress to assure its conformance with plans approved by the Committee. Subject to Article VII of this Declaration, no construction, alteration, addition, modification, decoration, redecoration or reconstruction of an Improvement in the Project shall be commenced or maintained until the plans and specifications therefore showing the nature, kind, shape, height, width, elevation, color, materials and location of the same shall have been submitted to the Committee and approved in writing by the Committee. The Unit Owner shall obtain a written receipt for the plans and specification from an authorized agent of the Committee. The Committee shall approve proposals or plans and specifications submitted for its approval only if it deems that the construction, alterations , or addition contemplated thereby in the locations indicated will not be detrimental to the appearance of the surrounding area of the Project as a whole, or will not unreasonably interfere with the view of another Unit Owner; that the appearance of any structure affected thereby will be in harmony with the surrounding structures, that the construction thereof will not detract from the harmony, wholesomeness and attractiveness of the Common Areas or the use and enjoyment thereof by the Members; and that the upkeep and maintenance thereof will not become a burden on the Association. The Committee may condition its approval of proposals or plans and specifications for any Improvement (1) on such changes therein as it deems appropriate, (2) upon the agreement by the Person (referred to in this Section 4.02 as "applicant") submitting the same to grant appropriate easements to the Association for the maintenance of the Improvements (as applicable), or (3) upon agreement of the applicant to reimburse the Association for the cost of maintenance, or all three. The Committee may require submission of additional plans and specifications or other information prior to approving or disapproving material submitted. The Committee shall also issue Architectural Committee Standards or guidelines setting forth specific standards of approval, procedures for the submission of plans for approval (including the requirement of a fee to the Association to accompany each application for approval), and any additional reasonable factors which it will take into consideration in reviewing submissions. The Committee may provide that the amount of such fee shall be uniform, or that it be determined in any other reasonable manner, such as based upon the reasonable cost of the construction, alterations or additions contemplated. The Committee may require such detail in plans and specification submitted for its review as it deems proper, including without limitation, floor plans, site plans, drainage plans, elevation drawings and description or samples of exterior material and colors. Until receipt by the Committee of any required plans and specifications, the Committee may postpone review of any plan submitted for approval. Decisions of the Committee and the reasons therefor shall be transmitted by the Committee to the applicant at the address set forth in the application for approval, within forty-five (45) days after receipt by the Committee of all materials required by the Committee. Any application submitted pursuant to this Section 4.02 shall be deemed approved, unless written disapproval or a request for additional information or materials by the Committee shall have been transmitted to the applicant within forty-five (45) days after the date of receipt by the Committee of all required materials. Grantor need not seek approval of the Committee with respect to its construction activities, until Close of Escrow for the sale of all of the Condominiums in the Project.