EXHIBIT E

RULES AND REGULATIONS

FOR SAPPHIRE BAY CONDOMINIUMS WEST

Rule 1. The walkways, passages and stairways of the buildings shall not be obstructed or used for any other purpose than ingress to and egress from the apartment units.

Rule 2. No owner shall place any article on any of the walkways, passages, stairways, railings, roofs, exterior walls or any limited common area or common area, without Board approval, nor shall the same be obstructed in any manner. This includes ANY KIND OF WATER BOARD, TOYS, hanging clothing, bathing suits and towels on railings.

Rule 3. Each unit owner shall keep his/her apartment unit, terrace and rear patio, to which he/she and/or his/her tenant has sole access (hereafter “premises”) at all times, in a reasonably good state of preservation, condition and cleanliness, WITH ALL PLANTINGS TRIMMED AWAY FROM BUILDINGS AND FENCING and shall assure that said premises do not violate any health, fire, sanitation or electrical codes nor create a danger of violating same: each unit Owner shall not sweep or throw or permit to be swept or thrown there from, any dirt or other substance. MGMT RESERVES THE RIGHT TO TRIM AND IF NEEDED, REMOVE ALTOGETHER ANY PLANTINGS THAT ARE DEAD OR DISEASED THAT PUT NEARBY PLANTINGS IN JEOPARDY; AND OR THOSE THAT HINDER SECURITY.

Rule 4. No signs, notices, advertisements or illumination shall be exposed on or at any window or other part of the building.

Rule 5. All radio, television or other electrical equipment of any kind or nature installed or used in each apartment unit shall fully comply with all rules, regulations and requirements of the public authorities having jurisdiction, and the unit Owner alone shall be liable for any damage or injury caused by any radio, television or other electrical equipment in such unit owner’s apartment unit.

Rule 6. No unit owner shall make or permit any disturbing noises in his apartment or within the common areas and facilities, or do or permit anything to be done therein, which will interfere with the rights and reasonable comfort and convenience of other Owners.

Rule 7. Water closets and other water apparatus in the building shall not be used for any purpose other those for which they were designed, nor shall any sweepings, rubbish, rags or any other article be thrown into it. Any damage resulting from misuse of any water closets or other apparatus in an apartment unit shall be repaired and paid for by the owner of such apartment unit.

Rule 8. No unit Owner or any of his agents, servants, employees, licensees or visitors shall at any time bring into or keep in his apartment any inflammable, combustible or explosive fluid, material, chemical or substance, except for normal household use. Barbecue grills and lanterns utilizing gas, kerosene, alcohol, gasoline or other inflammatory substances may not be used.

Rule 9. The only pets allowed on SBCW property, inside or outside, are indoor cats, NO MORE THAN TWO PER UNIT AND shall not be allowed outside an owner's unit. Animals that serve as documented, registered service animals are excluded from any restrictions as required by law. Owners or renters must inform the SBCW office if service animals are on the property.

Rule 10. No garbage or trash shall be left or disposed of on or adjacent to the property except in authorized locations.

Rule 11. Any employee of SBCW may be engaged by an owner to perform work within his/her own premises. SBCW employees shall perform this work after scheduled work hours and shall not utilize any supplies owned by SBCW.

Rule 12. No vehicles belonging to a unit owner or to a member of the family or guest, tenant or employee of a unit Owner shall be parked in a manner that impedes or prevents ready movement by another vehicle in residence or not in residence. ALL VEHICLES INCLUDING RENTALS NEED TO BE REGISTERED WITH OFFICE AND GIVEN PARKING PERMITS. IF PROPER PERMIT IS VISIBLY SHOWN, THEN ONE PARKING SPACE DIRECTLY BEHIND THE UNIT MAY BE USED. Violators will be towed at owner’s expense. When not in residence, the vehicle shall ONLY be parked in the area designated by Management. ABANDONED VEHICLES WILL BE TOWED AT OWNERS EXPENSE.

Rule 13. The Board of Directors or the Managing Agent or the Manager may from time to time curtail or relocate any space devoted to storage or service purpose in the buildings.

Rule 14. Any Owner, member of his family, tenant or guest using the adjoining beach area to which unit owners have use rights shall clean up the beach upon his departure and remove any trash or other articles for which he is responsible.

Rule 15. Keys to entry locks including digital locksets must be kept on file with the General Manger for safety and protection from damage of the units. If any other key or keys are entrusted by a unit owner or by a member of his/her family or by his agent, servant, employee, licensee or visitor to an employee of the Board of Directors or of the managing agent, whether for an automobile, truck or other item or personal property, the authorization shall be at the sole risk of such unit owner. Neither the Board of Directors, the managing agent nor the manager shall be liable for injury, loss or damage of any nature whatsoever, directly or indirectly resulting there from or connected therewith. An employee or member of the Board of Directors without prior written approval of the owner will not furnish any keys to any person.

Rule 16. Complaints regarding the operation of the Condominium or service of the buildings, grounds, etc., shall be made to the Manager and then, if necessary, in writing to the Board of Directors.

Rule 17. Owners’ boats must be identified and must not be moored in the swimming area at any time. All owners’ boats or windsurfing boards must be stored on the boat racks when the owner is not in residence or not in frequent use when in residence. ALL ABANDONED BOATS WILL BE REMOVED AT OWNERS EXPENSE.

Rule 18. No owner, nor any relative of any owner, shall be employed in any capacity by the Condominium.

Rule 19. Beach lounges and chairs, tennis courts, swimming pool and all other common facilities provided by the Condominium are to be used by owners and guests only. Guests are not allowed to use any of the common facilities unless accompanied by owners or renters. At specified times, the number of chairs and lounges used by owners and guests may be limited by the Management WHO RESPECTFULLY ASK ALL USERS TO BE COURTEOUS.

Rule 20. All repairs to individual apartments are the responsibility of individual owners. In an emergency situation, the Condominium will make the necessary repairs and bill the owner. Whenever feasible, if the charge exceeds $250, written permission (email is acceptable) by the owner will be required before repairs begin. Charges will appear on the monthly statement and must be paid within 30 days.

Rule 21. No apartment shall be rented for less than three nights. RENTALS FOR 6 MONTHS OR MORE, INCLUDING MONTH TO MONTH LEASES MUST HAVE SIGNED WRITTEN LEASE AGREEMENTS WHICH INCLUDE THE LIMIT OF TWO VEHICLES PER UNIT, NO PETS INCLUDING CATS, OCCUPANCY LIMIT 2 ADULTS FOR STUDIO AND ONE BEDROOM; 4 ADULTS FOR TWO BEDROOM AND ALSO STATE LESSEES MUST ABIDE BY ALL RULES AND REGULATIONS OF SBCW.

Rule 22. Rental apartments, OTHER THAN LONG TERM AS DEFINED ABOVE shall be occupied by nor more than:

Studio 3 occupants;

One Bedroom 5 occupants

Two Bedroom 7 occupants

Rule 23. No unit owner, or any person occupying said unit with the consent of the unit owner, shall feed or water any animal any place on the SBCW property, except at the authorized feeding area and only with approval by Management.

Rule 24. Should the Board of Directors be required to incur any expense in abating any violation of breach of the Rules and Regulations by a unit Owner or their tenant herein, as permitted by Article V, Section 9 of the Bylaws, all such expenses shall be chargeable to the account of the Owner of the unit as an additional common charge.

Rule 25. Each Unit Owner shall be obligated to install and maintain, in good working order, metal hurricane shutters on each and every window and door AS part of their respective Unit. The purpose of this rule is to help secure the entire building structure in which each Unit is located from the threat of wind damage. It is acknowledged that from time to time SBCW may self-insure against loss by earthquake, windstorm, or other hazards, whereby it is of utmost importance to all Unit Owners that the buildings be properly protected. In the event of any violation of this Rule, whereby any Unit Owner fails to install such metal hurricane shutters, and/or keep the same in good working order, the Board of Directors shall, in accordance with Article V, Section 9 f the Bylaws, be entitled to abate such violation by installing hurricane shutters and/or causing any necessary repairs and/or maintenance to be done thereupon, at the expense of the defaulting Unit Owner.

RULE 25A*** ALL OWNERS RENTING THEIR UNIT MUST ANNUALLY PRESENT TO OFFICE A COPY OF UPDATED CERTIFICATE OF INSURANCE FOR 1 MILLION COVERAGE FOR PERSONAL INJURY AND PROPERTY DAMAGE AS PER ARTICLE IV, SECTION 18 IN OUR BY-LAWS. FAILURE TO DO SO WILL RESULT IN LOSS OF RENTAL AND VOTING PRIVILEGES.

Rule 26. The General Manager will enforce all By-laws and Rules and Regulations. Any violation, after an owner has received a formal warning for any prior violation shall result in the owner being fined $100 for the second violation. Each violation after that shall result in a $150 fine assessed to the owner of the unit ALL due within 30 days.

BELOW ARE SOME COMMON R&R’S FOR CONDO PROPERTIES THAT WE MIGHT WANT TO CONSIDER:

•No occupant may violate any local, state or federal law, ordinance, regulation, statute, rule, or other restriction or requirement.

•Public intoxication by alcohol or other controlled substance is strictly prohibited.

•For the comfort of all, no loud or annoying activity is permitted.

•No occupant shall disturb or permit to be disturbed any other occupant’s quiet enjoyment of a Unit.

•Nor may an occupant interfere with the rights, comfort, or convenience of any other Owner or Guest.

•No occupant may (1) permit or utter or create any statement, sound or noise; (2) present or display any image, gesture, symbol, or conduct; or (3) take any other action with the effect or intent of causing harm, fear, anger, or reasonable offense toward other occupants, employees or property of SBCW.

•An adult must accompany children under the age of 12 years old.

•No pets allowed on the property. If a pet of any kind is found, you will be subject to a charge of $250 per day

•No dog, cat or other pet shall be allowed in the unit. A nonrefundable charge of up to $250 per day may be assessed by SBCW if a pet is identified.

•Water shall not be left running for any unreasonable or unnecessary length of time.