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HomeMy WebLinkAboutDocumentation_Regular_Tab 22_04/13/2006 VILLr�GE OF TEQUESTA 1VIEETING AGENDA ROUTING SI�[EET MEETING Dr�TE: 4/13/2006 Village Council REQUESTED ACTION/SUMMARY: The Preserve of Tequesta, formerly known as The Crossings, is requesting an approval of their Preliminary Plat Plan. The original site plan was approved by the council at the May 12, 2005 meeting. The DRC has reviewed the Preliminary Plat with comments for the Final Plat approval. RESOLUTION OR ORDINANCE NUMBER: Res # Ord # ORIGINATING DEPARTMENT: Community Developoment FUNDING SOURCE: 2005/2006 BUDGET ACCOUNT NUMBER: 1lrlA CiJRR�NT BUDGETED AMOUNT AVAILABLE: $ AMOUNT OF THIS ITEM: $ AMOUNT REMAINING AFTER THIS ITEM: $ BUDGET TRANSFER REQITIRED: 0 Yes X No APPROPRIATE FUND BALANCE: ❑ Yes X No Piggyback Contract Name and #: Or Competitive Bid # APPROVALS: � = R �.� �, ._._. __. ; r° ,. DEPARTMENT HEAD:�_ . � � ��'� L ���,,� FiNANCE DIRECTOR: `�� VILLAGE MANAGER: VILLAGE MANAGE�i RECOMMENDATION: °° APPROVE ITEM: E� DENY ITEM: ❑ VILLAGE ATTORNEY: APPROVED FOR LEGAL SUFFICIENCY ❑ Yes ❑ No X Not Applicable (n/a) This Document Prepared By William P. Sklar, Esq. Foley & Lardner LLP 777 South Flagler Drive West Paltl� Beach, �'lorida 33401 And when recorded, return to: ' DECLARATION OF COVENANTS. RESTRICTIONS AND EASEMENTS FOR THE PRESERVE AT TEQUESTA T11zs Declaration of Covenants, Restrictions and Easements is made this day of , 200 , by , a FIorida (hereinafter referred to as the "Declarant"). RECITALS WHEREAS, Declarant is the owner of certain real property located in the Town �f Tequesta, Palm Beach County, Florida, which is more particularly described in Exhibit "A" hereto consisting of Parcel "a" and Parcel "2" (hereinafter collectively referred to as the "Property"), and WHEREAS, Declarant wishes to initially subject the Property to the terms and conditions of this Declaration; and WHEREAS, Declarant deems it desirable for the efficient preservation of the values and amenities of the Property to create a corporation not-for-profit under the laws of the State of Florida (hereinafter referred to as the "Master Association") to which there shail be assigned the powers of owning, inaintaining and administering those portions of the Property which may be designated as "Coinmon Areas" (as hereinatter defined} pursuant hereto and for the further purpose of administering and enforcing the covenants and restrictions and collecting and disbursing the assessments and charges hereinafter created by this Declaration, and WHER�AS, Declarant has caused the Master Association, the members of which shall be the respective Owners of Units (as hereinafter defined) in the Coinmunity (as hereinafter defined), including the Declarant, to be formed for the purpose of exercising the aforesaid purposes and functions; and WHEREAS, Declarant presently intends to develop Parcel 2 as a residential condominium consisting of a maximum of 60 townhouse condominium units to be known as The Preserve Townhouses at Tequesta Condominiuna, and to undertake the saie or l�ase of those Uzlits (as hereinafter defined) within Parcel 2 pursuant ta a general plan and subject to certazii 1'MB_PMB 293717_ I/MAMOORfi protective covenants, conditions, restrictions, reservations, easements, equitable servitudes, Iiens and charges, all running with said Property, as hereinafter set forth; and WHEREAS, Declarant presently intends to undertake the sale of Parcel 2 with the intent that it be developed as a condominium with a maximum of 92 Units to be known as The Preserve at Tequesta Condominium or lease of those Units (as hereinafter defined) within Parcel 2 pursuant to a general plan and subject to certain protective covenants, conditions, restrictions, reservations, easements, equitable servitudes, liens and charges, all running vvith said Property, as hereinafter set forth. Declarant wishes to initially subject the Property to the terms and conditions of this Declaration and may execute, acknowledge and record supplemental declarations or amendments so long as Declarant is the owner of any portion of the Property or Community affected by such Suppleznental Declaration(s) (as hereinafter defined). Such Supplemental Declaration(s) or amendments may bring additional lands under the provisions of this Declaration as hereinafter provided, azid may irnpose further and additional restrictions, ' conditions and covenants for the operation, protection and maintenance of the Property, or sucl� portions thereof or other lands, all as hereinafter set fortli. NOW THEIZEFORE, Declarant hereby declares that all of the real property described in Exhibit `�A" attached hereto shall be he�d, sold, conveyed, encumbered, hypothecated, leased, used, occupied, improved and otherwise dealt with subject to tk�e easements, covenants, conditions, restrictions, reservations, liens, charges, and equitable servitudes as l�ereinafter set forth, all of which are for t11e purpose of uniforinly enhancing and protecting the value, desirability and attractiveness, and are in furtherance of a general plan for the protection, maintenance and improvement of the Property. The covenants, conditi�ns, restrictions, reservations, easements, equitable servitudes, liens and charges set forth herein shali run with the title to the real property described in Exhibit "A" attached hereto and shall be binding upon a(1 persons having or acquiring any right, tit�e or interest therein or any part tl�ereof, their heirs, personal representatives, successors and assigns and shall inure to, the benefit of each and every person or entity from tin�e to time owning or holding an interest in said real property or aray portion tIlereof ai�d shall further inure to the benetit of and be binding upon the Declarant, iis heirs, personal representatives, successors and assigns and each other Owner (as hereinafter detined), his respective heirs, personal representatives, successors and assigns and his tenants, invitees, licensees, and guests and may be enforced by an Owner, and his heirs, personal representatives, successors and assigns, by the Master Association, and by the Declarant so long as it is an Owner of any portion of the Property or Community, including, but not limited to any Units contained within the Property. This Declaratio7i and any amendment hereto shall not be deeined to be for tl�e benefit of any holder of a mortgage or security deed or its successors and assigns, unless and until such holder has acquired title to a Unit pursuant to foreclosure or judicial proceeding or deed-in-lieu of foreclosure. Notwithstanding the foregoing, no provision of this Declaration shall in any manner be construed as to prevent or limit Declarant's rights to complete the sale or lease of any portion of the Property or Comnlunity and the constructio�l of improvements thereon, nor Declarant's right to maintain models, construction, saies, Master Association' or teasing offices, or similar or other facilities on any portion of the Property or Community, nor the Declarant's right to post ' 2 Pt�/lQ PMB 293712 1/MAMOOR� signs incidental to the sales, leasing or otherwise marketing of any portion of the Property or Community. ARTICLE I DEFINITIONS Tlie following words and terms when used in this Declaration or any Supplemental Declaration or amendment hereto, or any Sub-Declaration (as hereinafter defined) z•ecorded affecting aziy portion of the Property (unless the context shall clearly indicate otherwise} shail have the following nieanings: Section l. "Ag�regate Assessment" or "Az�nual Assessment" shall mean and refer to the total annual assessment for the Master Association pursuant to the Annual Budget, as defined in Section 2, below. Section 2. "Annual Budget shall mean az�d refer to the estimated total expenditures for servzces to be provided by the Master Association and other expenses of the Master Association, as more particularly described in Article V of this Declaration. Section 3. "Architectural and I�evelopment Review Board" or "ARB" shall mean and refer to the Architectural and Development Review Board of the Master Association as more particularly described in Article IX of this Deciaration. Section 4. "Articles" shall mean and refer to the Articles of Incorporation of the Master Associatioz� as they may exist from time to time. Section 5. "Assessment Unit" shall mean and refer to the amount of the Annual Assessment levied against each Unit for a given year, as determined from time to time by the Board of Directors of the Association, as defined in Section 6, below. Section 6. "Board of I3irectors" or "Board" shall mean and refer to the Board of Directors of the Master Association as said Board may exist from time to time. Section 7. "B Iaws" shall mean and refer to the Bylaws of the 1Vlaster Association as tliey may exist from time to time. Section 8. "Common Areas" shall mean and refer to all real property located within the Property or easements thereon, together with any improveznents thereon, and any personal prapex•ty situated thereat, which are actually deeded to, dedicated to, or otherwise acquired by the Master Association. Such Common Areas shall be designed and intended for the common, nonexclusive use of certain (or all) of tne Owners and their tenants, guests, licensees and invitees. Common Areas shall include those areas designated as such herein or zn any Supplemental Declaration hereto or by or on any plat where dedication thereon is made bv Declarant, together with, if applicable and to the extent provided herein, the nlain entry road, ' 3- PMB PMF3 293712 1/MAMOORfi perimeter wall and property along the exterior of such wall, landscaping and pedestrian areas, if any arour�d the entry road and exterior of the perimeter wall, entry features, signs erected by Declarant to identify the Property or any portions thexeof, the main gate houses (if any), irrigation, sprinkler systems, and lighting within the entry road area and exterior of the perimeter wall as well as internal signalization and signage along the entry road and s�ecial design features within the Property; and such similar iterns or property which may hereafter be added to the Common Areas by Supplemental Declaration or otherwise regardless of whether any such items are capable of being legally described or lie within dedicated areas, together with the landscaping and any improvements thereon, including, without limitation, all structures, recreational facilities, open space, off=street parking areas, sidewalks, and other pedestrian patl�s (such as jogging and bicycle paths), street liglits, walls, fountains, ai�y public utility installations thereon or any areas which l�ave been dedicated to any public utility or special taxing district. Further provided however, c.°,rtain portions of the Property shall not be deemed to be Common Areas to the extent the same are specitically made common areas or common elements of a Suh- Association (as hereinafter defined) pursuant to a Sub-Declaration (as hereinatter descrzbed). Without limiting the generality of the foregoing, it is specifically intended that the Common Areas shall include any and all subsequent capital improvements nnade by or at the direction of the Declarant and/or the Master Association beyond the initial instalIations and/or maintenance provided by any governmental or quasi-governnzental entity to which applrcable portions of the Property may now or hereafter be dedicated. In addition to the Master Association, Declarant shall have the right, subject to obtaining all required governmental appravals and permits, to construct or to have constructed on such Common Areas those facilities Declarant deems appropriate. All references herein to particular property or structures whicli are or may become part of the Common Areas are by way of illustration and example only, and Declarant shall be under no obligation to grant or construct such particular property or structures by reason of such references. Additionally, the timing, phasing and dates of completion of all such construction relative to Common Areas shall be solely within the discretion of the Declarant. Although Declarant will endeavor to specifically identify (by recorded legal description, signage, physical boundaries, site plans ar other means) the Common Areas, such identification shall not be required for a portio�: of the Property to be deerrted a Common Area hereundei�. Witliout limitir�g the generality of any other provisions of this Article, in the event that Declarant determines that a particular portion of the Property is or is not a Common Area hereunder, suc11 determination shall be binding and conclusive. It is specitically contemplated that the Common Areas may change from time to time iii connection with changes in Declarant's development plans and other factors not now known (including, without limitation, by increase, decrease or transfer to a Sub-Association). Accordingly, reference in this Declaration to the Common Areas shall be deemed to refer to same as they may exist from time to time. Section 9. "Community" or "Propertv" shall mean and refer to that certain real property located in the Town of Tequesta, Palm Beach County, owned by Declarant, more ° 4- PMI3 YMB 293712 1/MAMOORI: particularly described in Exhibit "A" hereto, which is the subject of this Declaration and which is and sliall be held, transferred, sold, conveyed, leased and occupied subject to this Declaration, and any additions thereto in accordance with this Declaration, as it may be supplemented or amended from time to time. Real property may be withdrawn from the Property in accordance with Article II of this Declaration. Section 10. "Communit� Systems" shall mean any and all cable television, telecommunication, alarm moi�itoring lines, street lighting, conduits, wires, aznplifiers, towers, antennae, equipment, materiais, installations and fixtures (including those based on, containing or serving future technological advances not now known) installed by Declarant or pursuant to any grant of easement or authority by Declarant within the Property and serving more than one Unit. Declarant shall be permitted, but shall not be obligated to instail and/or cause the installation of Gommunity Systems. Section 11. "Countv" shall mean Palm Beach County, Florida. Section 12. "Declarant" shall mean CORNERSTONE TEQUESTA, LLC, a Florida limited liability company. Declarant may assign all or a portion of its rights hereunder, or all or a portion of such rights in connectiorl with appropriate portions of the Community. In the event af such a partial assignment, the assignee shail not be deemed to be the Declarant, but rnay exercise such rights of Declarant specifically assigned to it. Any such assignment shall be presumed to be on a non-exclusive basis, uniess otherwise expressly stated. Section 13. "Declaration" shall mean this instrument and all exhibits hereto as the sanne may be amended or supplemented from time to time. Section 14. "District" shall mean the South Fiorida Water Management District or its successors. Section 15. "General Ex enses" shall mean the expenditures for maintenance, operation and the rendering of services required or authorized to be perfornled by the Master Association or its agents, designees, or assigns. Section 16. "Improvements" shall mean all structures of any kind, rncluding, without limitation any building, fence, wall, sign, paving, grading, any addition, alteration, screen enclosure, sewer, drain, disposal system, decorative building, landscaping or landscaping device or object or other changes to the natural state of t1�e property and vegetation existing thereon. Section 17. "Individual Assessments" shall mean assessments levied against particular Units and/or Owners to the exclusion of others and other eharges against specific Units or Owners as contemplated in this Declaration. Section 18. "Institutional Mort�agee" shall mean any bank, bank holding company, trust company or subsidiary thereof, savings and ioan association, insurance company, unio�l pension fund, tnortgage company approved in writing by Declarani, an agency of the United - 5 ' PMB PM13_293712 1/MAMOORG States government, or Declarant, which holds a first mortgage of public record on any Unit, or part thereof, or other portion of tl�e Property and the holder of any mortgage of public record given or assumed by Declarant, wiiether a first inortgage or otherwise, and their respective successors and assigns. Section 19. "Institutional Mort�a�e" shall mean any mortgage of publzc record given or assumed by Declarant, whether a first mortgage or otherwise ar any first mortgage of public record on any Unit, or other portion of the Property, owned or held by an Institutional Mortgagee as said terin is defined in Section 1$ of this Article. Section 20. "Master Association" or "Association" shall mean THE PRESERVE AT TEQUESTA MAINTENANCE ASSOCIATION, INC., a not-for-profit Florida corporation, its successors and assigns, being the entity responsible for the administration, and enforcement of perfonnance of certain duties as hereinafter set forth in this Declaration and in the Articles and Bylaws. Section 21. "Member" shall mean all Owners who are znembers of the Master Association as hereinafter provided. Section 22. "Owner" shall mean the record owner, whether one or more persons or entitzes, of the fee simple title to any Unit (as hereinafter defined) situated within the Property. ]f a condominium building is or will be located on a Parcel, each owner of a residential unit within the condozninium building shall be considered an Owner. Uniess the context requires otl�erwise, a Sub-Association shall be deemed the "Owner" of any real property owned or administered by said Sub-Association. Owner shall not mean or refer to the holder of a rnortgage or security deed or its successors and assigns, unless and until such holder has acquired title pursuant to foreclosure or judicial proceeding or deed-in-lieu of foreclosure. Section 23. "Pareel" shall mean the portions of the Property designated as "Parcel 1" and/or "Parcel 2" as shown on Exhibit "A" attached hereto and any otller property added to the Property by Suppleniental Declaration as elsewhere provided herein and which is designated therein as a Parcel. Section 1.21 "Surface Water Management System" means and refers to those portions of the Condominium Property which the Association is required to maintain pursuant to the SFWMD Permit, as provided in Section S.1 of this Declaration, which may include, but not be Iimited to, lakes, retention areas, culverts and related appurtenances. Section 1.22 "SFWMD" means the South Florida Water Managernent District. Section 1.23 "SFWMD Permit" means SFWMD Permit No. , dated , 200 Section 24. "Sub-Association" shall mean any association now or hexeafter created to administer one or more specific portions of the Property pursuant to a declaration of condominium or declaration of covenants and restrictions or similar instrument affecting such portions but shall not mean or in any manner be deemed to include the Master Association. - b - rMS_r�M� z��>>z iiM�,n�ooar: Section 25. "Sub-Declaration" shall mean any Declaration of Covenants, Conditions, Restricti�ns; Declaration of Condominiutn; or any other or similar• instrument executed by a declarant and recorded in the Public Records of Palm Beacl� County, Florida, affecting or purporting to affect any portion (but not ail) of the Property and which Sub-Declaration may establish additional covenants and restrictions on certain portions of the Property and which, without limiting the generality of the foregoing, may provide for the right to place liens against property and the right to levy and collect assessrnents separate and apart from assessments or lien right of the Master Association. Section 26. "Special Assessments" shall mean assessments for services wl�ich the Master Association is authorized or required to provide, to the extent that the Annual Assessineilt is insufficient to fund such services. Such Special Assessments are more particularly described in Article V of this Declaration. Section 27. "Su�plemental Declaration" shall mean any Declaration of Covenants, Conditions and Restrictions; Declaration of Condominium; or any similar instrument other than this Declaration which when executed by Declarant, either has t(�e effect of adding or deleting property to the Property pursuant to the provisions of Articie II hereof, or any such Declaration affecting all of the Property or the Community. Section 28. "Unit" shall niean any portion or subdivision of a Parcel on which there is or may be constructed Improvements pursuant to the applicable zoning ordinance and/or site plan (whetller separately owned or rented by the Owner of such Parcel and whether such Unit is located (or may be tocated} in a single-family or multi-family building (rental or otherwise)), or any condozninium unit in any condominium building that is or may be erected on any Parcel of lazld withii� the Property. ; Section 29. Tnterpretation and Flexibilitv_. In the event of any ambiguity or question as to whether any person, entity, property or improvement falls within any of the definitions set foi in this Article, the deterzxiination made by Declarant in such regard (as evidenced by a recorded instrument stating same) shall be binding and conclusive. Moreover, Declarant may, also by way of a recorded instruinent, alter or amend the application of any partion of this Declaration as to any specified portion(s) of the Community in order to reflect a�1y unique characteristics thereof; provided that such altered or amended application may not go so far as to be unequivocally contrary to the overall, uniform scheme of development for the Community contemplated in this Declaration. ARTICLE II PROPERTY SUBJECT TO THIS DECLARATION• ADDITIONS THERETO/WITHDRAWALS THEREFROM Section 1. Legal Description. The real property comprising the Property which sha11 be held; transferred, sold, conveyed, leased and occupied subject to this Declaration is described in Exhibit "A" attached hereto and made a part hereof by reference. Declarant may, in its sole ' 7 ' PME3_PMI3_293712_1/MAMOORI? discretion, either bring within this Declaration additional lands, or withdraw lands pursuant to this Article. Section 2. Addition Of Proberty. Declarant znay, from time to time, bring other land under the provisions of this Declaration and thereby add to the tand which shall corrlprise the Property by executing and recording Supplernental Declarations. Such Supplemental Declarations shall not require t11e consent of then existing Owners, the Master Associatio�� or any other individual or entity whether or not the land being added thereby rs part of the Community described on Exhibit "A" or otherwise. If Deciarant is not the owner of the Iand to be subjected liereto and/or added to the Property as of the date the applicable Suppiemental Declaration is to be made, then tl�e fee owner(s) of such land shall join in such Supplemental Declaration. Once so added, such land shall be deemed a part of the Property which has been subjected to this Declaration for all purposes of this Declaration, except as modified pursuant thereto, if at a11. Nothing in this Declaration shall, however, obligate Declarant to add to the Property. All Owners, by accepta�lce of their deeds to, or otherwise acquiring title to their Parcels or Units tllereby autoniatically consent to any rezoning, change, addition or deletion tk�ereafter made by tl�e lleclarant and shall evidence such consent in writing if requested to do so by t�ie Declarant at any time (provided, however, that the refusal to give such v✓ritten consent shall not obviate the effect of this provision). With respect to property not owned by the Declarant, the Declarant shall have the right to impose (and retain for its own account) fees for the privilege of allowing such other property to be made subject to this Declaration as aforesaid. Notwithstanding the foregoing, no additions may be made to tlae Property, nor Supplement��l Declarations or Sub-Declarations be executed and recorded, without the prior written joinder and consent of the Declarant which joinder and consent shall be in the sole and absolute discretzon of the Declarant. Section 3. Withdrawal. Declarant reserves the right to amend this Declaration tulilaterally at any tiine, without prior notice and without the consent of any person or entity, for the purpose of removing any portion of the Property then owned by the Declarant or the Master Association #rom the provisions of this Declaration to the extent included originally in error or as a result of any change whatsoever in the plans for the Property desired to be effected by Declarant; provided, however, that such withdrawal is not, in the reasonable judgment of Declarant, unequivoca(ly contrary to the overall, uniform scheme of development for the then- remaining portions of the Property. Any withdrawal of land not owned by Declarant from the provisions of this Declaration shall only be effected with tl�e written consent or joinder of the then-owner(s) of such land. Notwithstanding anything to the contrary contained in this Declaration, and without limitation, all easements, use and other similar rights created or granted under this Declaration shall automatically cease and terminate as to all land which is withdrawn from the Property ii� accordanee herewitla. ARTICLE III - g - PME3_PMC3 293712 I/MAMOORF. MEIVIBERSHIP AND VOTING RICHTS /N THE ASSOCIATIONFunctions alld DUt%@S. The Association shall be responsible for the maintenance, management and operation of the Condominiuin, including without limitation, responsibility for the aperation, maintenance and replacement of the Surface Water Management System, in perpe�uity, and as well as the obligation to take any actions against Unit Owners necessary to enforce the conditions of the SFWMD Permit; maintain copies of the SFWMD Permit and any future pern3it actions of the SFWMD, which shall be maintained by the registered agent of the Association for the benefit of the Association, perform any monitoring and maintenance required in the SFWMD Permit; complete any mitigation required to satisfy permit conditions; and n�taintain in petpetuity any signage required by tlie SFWMD Permit. All costs and expenses incurred in connection wilh all of the foregoing shall be Comrnon Expenses. Copies of the Articles of Incorporation and Bylaws of the Association are attached hereto and made a part hereof as Exhibits "E" and "F", respectively. Section l. Membei•sl�it�. Every person or entity who is an Owner shall be a Member of the Master Association. Notwithstanding the foregoing, any such person or entity who mere]y holds record ownership as security for the performance of an obligation shall not be a Member of the Master Association unless and until such holder has acquired title to a 1'arcel or Unit pursuant to foreclosure or judicial proceeding or deed-in-lieu of foreclosure. Membership shall continue until such time as the Member transfers or conveys ownership or such ownership is transferred or conveyed hy operation of law, at which time, the Membership, with respect ta the property conveyed, shall automatically be conferred upon the transferee, subject to the approval of the Association as indicated in Artiele XIV of this Declaratian. Membership shall be appurtenant to and znay not be separated from ownership of property subject to this Declaration. Section 2. Voting Ri�hts. Tl1e Association shall have two (2) classes of inembership, Class A and Class B, as follows: A. Class A. Class A Members shall be all Owners, with the exception of Declarant which shall be a Class B Member so Iong as such membership shall exist as set fortlz in Section 2B of this Article, thereafter, Declarant shall be a Class A Member to the extent it qualifies Class A Members shall be entitled to one (1) equal vote for each Parcel or Unit which they hold the interest required for nlembership under Section 2A hereof. When more tizan one person or entity is the owner of a Parcel or Unit, each shall be a Member, but there shall be only one (1 } vote per Parcel or Unit. In that instance, the vote for such Parcel or Unit shall be exercised as those Members determine betwe�n or among themselves and submitted by them in writing to the Secretary of the Associatian prior to any meeting. In the event more than one (1) Member seeks to exercise the vote belonging to a single Parcel or Uni�, such vote shall be suspended. - 9- PMB PM[3 293712 1/MAMOORfi B. Class B. The Class B Member shall be Declarant, or a representative thereof designated by it in a written notice to the Association, which shall have and cast in all Association matters a number of votes equal to five (5) votes for each vote which may be cast by tile Ciass A Members plus one (1). The Class B Meinbership shall cease and terminate, thereby converting to a Class A Membership, at such time as Declarant elects, but in no event later than transfer of control pursuant to Article XII of this Declaration. C. When more tilan one person holds the ownership interest required t'or membership, all such persons shall be Members, and the votes for such Parcel or Unit shall be exercised by a"Voting Representative" as they among themselves determine and in accordance with the Bylaws; provided however, that in no event shalI more than one (1) vote be cast with respect to each Assessment Unit. If a Parcel or Unit is owned by a corporation, general or limited partnership, trust, or other entity, it shall designate in writing one (1) of its shareholders, off�cers, partners or trustees, as the case may be, to represent it as a Member and which Member sha11 be the Voting Representative for that Parcel or Unit. Section 3. Board of Directors. The Master Association shall be governed by a Board of Director°s as provided for in the Articles and Bylaws of the Master Association. Tl�e inembei�s of the Board of Directors shall be selected by Declarant until transfer of control pursuant to Article �II of this Declaration. Thereat'ter, Directors shall be selected in the manner set forth in the provisions of this Declaration and pursuant to the Articles and ByIaws of ihe Master Association. Section 4. Notices to Membexs. All notices, mailings and other documents .provided or to be provided by the Association to Members shall be sent to the "Voting Representative" at his/her address as on file with the Association, fro�n time to time. The Association shall not have any obligation or responsibility to provide notices, mailings or documents to anyone other than the Voting Representatives as may be designated, fram time to time, by Members in accordance with this Declaration and the Articles and Bylaws of the Association. Section 5. General Matters. Wl�en reference is made in this Declaration, or in the Articles or Bylaws, or other relevant documents, to a majority or specific percentage of Men�bers, such reference shall be deemed to be reference to a znajority or specific percentage of either: (a) the votes of Members evidenced by a written consent of Members executed ia1 accordance with Section of the Bylaws; or, as applicable (b) tl�e votes of Members at a duly constituted meeting thereof (i.e., one for which proper notice has been given and at which a quorum exists) and not of the Members themselves or of their Units. To t11e extent lawful, the shall apply to, without limitation, the establishment of a quorum at any applicable meeting. ARTICLE IV COMMON AREAS• CERTAIN EASEMENTS• COMMUNITY SYSTEMS Section 1. Ownershib - lO - PMB_PMf�_293i12_I/MAMOOR): A, The Common Areas only, if and as platted, are hereby dedicated to the joint and several use, in con�mon, of the Declarant and the Owners of all Units that may from time to time constitute the Property, in the manner specified in this Declaration, and all of the Declarant's and such Owners' respective lessees, guests and invitees, all as provided and regulated hereir� or otherwzse by the Ivlaster Association. When all Improvements proposed by Declarant to be constructed within the Community have been completed and conveyed or leased to purchasers or ground lessees (if applicable), or sooner at Declarant's option (exercisabte from time to time as to any portion or all of the Common Areas), the Declarant, or its respective successors and assigns, shall convey and transfer (or cause to be conveyed and transferred), by quit claim deed, the record fee simple title to the Common Areas (except those areas lying within dedicated areas or not capable of being legally described) to the Master Association, and the Master Association shall be obligated to accept such conveyance, holding title for the Ownea�s and Members as stated herein. Declarant, at any time wl�atsoever, shal] have the right, but not the obligation, to relinquish any and all easements, obliga#ions or other rights in part or whole that it may have. B. The Master Association shall be responsible for providing for or obtaining the maizltenance, insurance and operation of all Common Areas (whether or not conveyed or to be conveyed to the Master Association, but excluding any maintenance obligations for which any applicable water or drainage district, governnnental agency or other governmental oi• quasi- governmental entity is responsible) in a continuous and satisfactory manner without cost to the general taxpayers of the County. It is intended that all real estate taxes assessed against tllat portion of the Common Areas owned, maintained or to be owned by the Master Association shall be proportionally assessed against and payable as part of the taxes of the Units within the Property. However, natwithstanding the foregoing, in the event that any such taxes are assessed directly against the Common Areas, the Master Association shall be responsible for the payment (subject to protest or appeal before or atter payrrzent) of the same, including taxes on any improvements and any personal property thereon accruing from and after the date this Declaration is recorded, and such taxes shall be prorated betweei�z Declarant and the Master Association as of the date of such recordation, and for such year, whether or not owned by the Master Association. C. Declarant and its designees shall have the right, but not the obligation, from time to time to enter upon the ComYnon Areas and other portions of the Goznmunity including, without liznitation, Parcels or Units, for the purpose of the installation, construction, reconstruction, repair, replaeement, operation, expansion and/or alteration of any Irnprovenients or facilities (including, without limitation, Community Systems) on the Common Areas or elsewhere in the Comrzlunity that Declarant elects to effect, and Declarant shall have the right to use the Common Areas foi° construction, sales, leasing, displays and signs during the period of sale or lease of any of the land owned by Declarant within the Cornmunity. Section 2. Members' Easeznents. Subject to the below-described rights of the Master Association to prohibit certain classes of Owners from using certain portions of the Commoii Areas, each Member of the Master Association and each tenant; agent, licensee, and invitee of such Meinber, shall have and there is hereby granted by Declarant a pertnanent and perpetual ' 11 - PMB PMB 291712 1/MAMOORIi non-exclusive easement for the use and enjoyment of all Cominon Areas izi comrx�on with all other such Members of the Master Association, their tenants, 1'rcensees, agents and invitees, subject, however, to the withdrawal of portions thereof from the Cornmunity in accordance witll this Declaration and further subject to this Declaration, the Articles and Bylaws of the Master Association and the Rules and Regulations promulgated by the Master Association and all Suppleniental Declarations and Sub�Declarations that may herea#ter �e recorded in the Public Records of Palm Beach County, Florida. All Mennbers' rights of use and enjoyment of the Common Areas are subject to the following: A. Easements over, under, across, through and upon the Common Areas in favor of all Sub-Associations, now existing or hereaf'ter created in accordance with this Declaration, for the purposes o# enforcing the covenants, restrictions, rules or regulations of the Master Association as the sazne may be delegated to a Sub-Association by the Master Association fronn time to time, provided, however, that this subsection shall not in itself be deemed to grant any easements or use rights which are not specifically granted elsewhere herein or in any other documents to which the Commurzity (or arzy applicable portion(s) thereo� are now or hereafter inade subject; B. The right and duty of the Master Association to levy and coll�ct assessments against each Unit and Owner thereof for t11e purpose of paying tlle General Expenses in compliance with the provisions of this Declaration and with the restrictions on the plats of portions af the Property from time to time recorded; C. The right of the Master Association to suspend t11e right of an Owner and his designees to use the Common Areas (except for legal access) and common facilities for any period during which any applicable assessment remains unpaid; and for a period not to exceed thirty (30) days for any infraction of lawfully adopted and published rules and regulations; D. The right of the Master Association to adopt, at any time and from time to tiine, and to enforce rules and regulations governing the use of the Common Areas and all facilities at any time situated thereon, including the right to prohibit use by and to levy fnes against Members as elsewhere provided herein. Any rule and/or regulation so adopted by the Master Association shall apply until rescinded or modified as if originally set forth at Iength �r� this Declaration; E. The right of the Master Association, by a unauimous affirmative vote oi' the Board of Directors, or the Declarant unilaterally (i.e., without the joinder or consent of tl�e Master Association or any of its Members) to dedicate portions of the Common Areas to a Sub- Association ot• a public or quasi-public agency, community development district, special taxing district or similar entity under such terins as the Master Association and(or Declarant deems appropriate and to create or contract with tlle Master Association and/or Declarant, community development and special taxing districts :for lighting, roads, recreationai or other services, - 12 - PMB_PMB_293712_t/MAMOORI: security, communications, and other sirnilar purposes deemed appropriate by the Master Association and/or Declarant (to which such creation or contract all Owners hereby consent); F. Anything to the contrary in this Declaration notwithstanding, the Declarant shall have tlie right to permit persons other tllan Members and designated persons to use certain portions of the Common Areas and any recreational facilities that may be constructed thereon under such terms as Declarant, its successors and assigns, may froin time to time desip without interfe�•ence from the Master Association, Owners, their tenants, guests and invitees; G. The right of the Declarant and the Master Association to have, grant and use general ("blanket") and specitic easements over, under and through the Cotnmon Areas, and to modify, amend, terminate, supplement and relocate such easements; H. The continuing right of tlie Declaraz�t, its deszgnees, contractors, successors and assigns, to conduct such activities within the Property as are necessary, in the sole judgment of Declarant, to develop the Property and Communzty, includizlg, but not limited to, construction of Improvements therein and maintenance of the development of the Property or any part tllereof, as well as such activities as are necessary in the sole judgment of Declarant to sell or lease Units located within the Pz�operty. As a material condition for ownership of a Unit within the Property, each Owner, by accepting a deed to a Unit, whether or not so stated therein, hereby releases Declarant and its affiliates, and its and their partners, officers, directors, employees and agents from any alleged claim or cause of action, including but not liznited to trespass or interference with his quiet enjoyment of his Unit or the Common Areas, due to the development of the Property, whether or not the construction operations are perfortned on Parcels, Units, or Coinmon Areas, and each Owner acknowledges and agrees that Declarant shall have the sole right of design, construction, development and improvement of the Conlmo�l Areas and the Parcels and Units within the Property unless otherwise indicated by Declarant. I. Anything to the contrary in this Declaration notwithstanding, any references herein to any particular Common Areas, or particular types of Cammon Areas, are by way of illustration and exarnple only, and Declarant shatl in no event be requxred to gt•ant or construct such Cornmon Areas in aecordance with such references, and may withdraw or amend such portions of the Common Areas as Declarant may determine. Section 3. Easements A�purtenant. The easements provided herein sllall be appurtenant to and shall pass with the title to each Parcel and Unit. Section 4. Maintenance. A. The Master Association shall at all times maintain in goad repair, operate, manage and obtain insurance for, and shalI replace as often as necessary, the Cominon Areas, any and all Improvements situated on the Common Areas (upon completion of construction by Declarant), including, but not limited to, all recreational facilities, Iandscapzng, paving, privafie roads, street lighting fixtures, sidewalks, Community Systems (to the extent same have not been made Common Areas) and other portions of the Property which are not rnaintained by a Sub- - 13 - PMII_PMB_.Z93712_I/MAMOORIi Association, all such work to be done as ordered by tl�e Board of Directors of the Master Associatioi�. Maintenance of street lighting fixtures shall include and extend to payment for electricity or other fuel consumed in their illumination. Without limiting the generality of the foregoing, the Master Assoczation shall assume all of Declarant's (and its respective predecessors, if any) responsibility and obligations to the County, its governmentai and quasi- governxnental subdivisions and similar entities of any kind, with respect to the Comm�n Areas, i��cluding, but not limited to, roads and entry features, and shali indemnify Declarant, its affiliates, and its and their partners, officers, directors, employees and agents, and hold the�n harinless with respect thereto. Notwithstanding anything contained lierein to the contrary, the Master Association shall not have the responsibility of maintaining any Northern District Property or other areas dedicated to the District or a governmental or quasi-governmental agency or subdivision, unless and until the Master Association expressly assumes written responsibility far the maintenance of such areas. B. In the event of any conflict, ambiguity or uncei as to whether certain maintenance or other duties as to any portion of t11e Property falls within the jurisdiction of the Master Association or a Sub-Association, the detennination of the Board of Directors shall control. C. All maintenance and services performed or provided by the Master Association, and its agents or designees, pursuarit to this Section and ali expenses hereunder shall be paid by the Master Association through assessments ilnposed in accordance herewith. Ir� order to effect economies of scale and for other relevant purposes, the Master Association, on behalf of itself and/or aIl or appropriate Sub-Associations, shall have the power to incur, by way of contract or otherwise, General Expenses as to the Community or appropriate portions thereof, and the Master Associatian shall then have the power to allocate portions of such expenses an�ong the affected Sub-Associations, based on sucll formula as may be adopted by the Master Association or as otherwise provided in this Declaration. The portion so alIocated to any Sub- Association, if any, shall be deemed a General Expense thereof, collectible through its own assessments. D. No Owner may waive or otherwise escape liabzlity for the assessments for such maintenazice by non-use (either voluntary or involuntary) of the Common Areas or abandonn�ent of his right to use the Common Areas. E. In the event any maintenance, repair, coi�struction or re-construction of any portion of the Coinmon Areas are necessitated by the negligent or willful acts or amissions of an Owner or his guests, tenants, invitees, or family, such expense shall be borne solely by such Owner and his Parcel or Unit, as applicable, which shall be subject to an Individual Assessment for such expense. In addition to and not in lieu of such assessinent, the Master Association has the right, but not the obligation to enforce any other remedies available to it at law and in equity, against any responsible party for such negligent or willful acts or omissions. P. Notwithstanding anything contained herein to the contrary, the Master Association shall have the right but not the obligation to perform exterior maintenance of Lots, - 14 - NM� nM� 293712 1/MAMOOR]• the charges for wl�ich shall be separate from the Annual Assessmerit, Assessmen� Unit levied against each Lot, nor shall such charge be deemed an Individual Assessnlent as defined in Article V, Section 4 of this Declaration. Sucli charges shall be deemed supplemental thereto to be deternained in a separate budget promulgated by the �oard of Directors of th� Master Assoc�ation in the event the Master Association determines, in its sole discretion, to undertake such Lot or Unit exterior maintenance, or accepts delegation fi a Sub-Association of its naaintenance of said Sub-Association's maintenance responsibilities for such exterior Lot or Unit maintenance, as the case may be. Section 5. Declarant's Easements. A. The Declarant hereby reserves to itself, its successors and assigns, a perpetual non�exclusive easement, privilege and right in and to, over, under, on, and across the Cammon Areas, and all other portions of the Property, except for Units owned by persons or entities other than the Declarant, as well as across dedicated roadways, rights-of-way, and pedestrian paths for ingress and egress as required by Declarant's officers, directors, employees, agents, independent contractors, licensees and invitees for purposes of constructing, improving, selling or leasing said Property to prospective purchasers, lessees and other invited guests, as well as to post signs and znaintain saies and leasing offices; provided, however, that such access and use sllall not unnecessarily interfere with the reasonable use and enjoyznent of the Cotnmon Areas by the Owners. Declarant further reserve to itself; its successors and assigns, officers, directoz•s, enlployees, agents and independent contractors, licensees and invitees, non-exclusive easements for ingress and egress over, under, oz�, and across the Common Areas, dedicated roadways, rights-of-way and pedestrian paths within the Community for ingress and egress over said areas. B. Declarant hereby reserves to itself, its successors and assigns, a perpetuat non-exclusive easenlent over all of the Parcels included within the Property for the purpose of pern�itting the Declarant and its agents, contractors, subcontractors and employees to cozne upon such land for the purposes of constructing and installing any and all improvements upon any portion of any other contiguous Parcel, which improvements shall include, but �iot be Ii�nited to, clearzng, grading, drainage, installation of utilities, construction of buildings, walls of buiIdings, privacy walls, footings for same, application of stucco, painting, landscaping, irrigation, t•egardless of whether or not transferred to third par It is the purpose and intent of the Declarant to provide that the Declarant shall have #zee, uninterrupted and unencumbered access to all Parcels for the purposes of ingress and egress and enabling the Declarant and its agents to carry out construction activities on suclz Parcels, even if the construction activity pertains to homes and other improvements on adjacent or other Parcels, providing, however, the Dectarant shall l�ave the obligation to restore any damage caused to any Parcel by Declarant's use of such easement. The easement and rights granted and reserved by t1Zis Section 5 shall continue as long as the Declarant owns any Parcel within the Property and upon the sale or tr•ansfer of tl�e - 1 5- PMB_PMF3_ 29:�712 I/MAMOORI last of the Units, the easements and reservations created by this Section 5 shall be deezned to be terrninated and of no further force or effect. Section 6. CommunitY S stems. Declarant shall have the right, but not the obligatioz�, to convey, transfer, sell or assign, all or any portion of the Community Systems located within the Property, or all or any portion of the rights, duties or obligations with respect thereto, to the Master Association, one or more Sub-Associations or any other person or entity (including an Owner as to any portion of a Community System located on/in his Unit). Without limiting the gezlerality of any other provisions hereof, if and when any of the aforesaid entities receives sucl� a cor�veyance, sale, transfer or assignment, such entity shall automatically be deerned vested with such rights of Declarant in connection therewith; provided that if the Master Association is the applicable e�itity, then the Cammunity Systerxi or applicable portions thereof shall be deemed Common Areas hereunder aild the Master Assoczation's rights, duties and obligations with respect thereto shall be the same as those as to other Common Areas ur�less otherwise provided by Declarant. Any conveyance, transfer, sale or assignment inade by Declarant pursuant to this Section (i) may be made with or without consideration, (ii) shall not require the consent or approval of the Master Association or any Owner or Sub-Association and (iii) if made to the Master Association, shall be deemed to have been automatically accepted with all rights, duties, obligations and liabilities with respect thereto being deemed to have been automatically assumed by the Master Association. Section 7. Utilitv and Communit� Systems Easements. Public utilities ii� the Common Areas for the service of the Property shall be instalted underground except as otherwise pernlitted by Declarant. Declarant and its designees sl�all have a perpetual easement over, upon and under the Common Areas and the unimproved portions of the Parcels for the installation, operation, maintenance, repair, replacement, alteration and expansion of Conlmunity Systenis. Public utilities as used herein shall not include cable television unless otherwise specifically granted by Declarant pursuant to a separate grant of easement document. Section 8. Public Easements. Fire, police, health and sanitat�on and other public service personnel and vehicles shall have a pernlanent and perpetual non-exclusive easement for ingress and egress over and across the Comtnon Areas in the performance of their respective duties. Section 9. Draina�e Easements. A. Non-exclusive easements for the installation and maintenance of drainage facilities shall exist in favor of the Master Association and Declarant, as shown, if any, on any recorded plats of the Property or any part thereof. Within these easement areas, no structure, planting or other inaterial, other than sod, shall be placed or permitted to renaain (unless installed by the Declarai�t, its designees, successors or assigns and replacements of same) which may interfere with such installation and maintenance or which may obstruct or retard the flow of� stormwater. Notwithstanding the foregoing, sod and other plantings shall be permitted if tl�z� drainage easement is one which covers a buried pipe line and over which no surface drainage is to be tnaintained. The Master Association and Declarant shall have full access to all such - 16 - PMB_YME3_ I/MAMOOR!'. drainage easements, for the purpose of operation and of maintenance thereof and shall not be held liable for any damage to or removal of any Owner's sod or otl�er plantings caused by such operation and maintenance activities. B. Each Parcel and the Common Areas shall enjoy and sha/l be subject to a perpetual, non-exclusive cross easement of drainage and flowage in favor of all adjacenf Lots and Common Areas and no Owner may construct or permit any lmprovement or other structure or condition to exist upon his Parcel or Unit wh►ch will interfere with stormwater runoff onto or from his Parcel or Unit, except if constructed by the Declarant or its designees or assignees.Drainage EaS@/rI@t7�'S. Non-exclusive easements are hereby granted by Developer for the installation and maintenance of drainage facilities which shall exist in favor of the Association and SFWMD. Within these easement areas, no structure, planting or other material, other than sod, shall be placed or permitted to renaain (unless insfialled by the Developer, its designees, successors �r assigns and replacements of same) which may interfere with such installation and maintenance, or which may obstruct or retard the flow of storm water. Notwithstanding the foregoing, sod and other plantings shall be permitted if the drainage easement is one which covers a buried pipeline, and over which no surface drainage is to be maintained. The Association and SFWMD shall have access to all such drainage easements, for the purpose of operation and of maintenance thereof and shall not be held liable for any damage to or removal of any plantings caused by such operation and maintenance activities. South Florida Water Management District. Develop�r the Association, and its inembez acknowledge that SFWMD has the right to take enforcement action, including civil action for an injunction and penalties, agaii�st the Association to compel it to correct any outstanding problems wzth the Surface Water Management System faczlities or in mitzgation or coz�servation areas under the responsibility or control of the Association, if any. Section aO.Maintenance of Surface Water Management System. The Association shall have the responsibility to perpetually maintain the Surface Water Management Systenl and take action against Unit Owners as necessary to enforce the conditions of the SFWMD Permit. Copies of the SFWMD Permit and any future permit actions of the SFWMD shall be maintaizied by the registered agetlt of the Association for the benefit of the Assoc�atzon. Any monitoring and maintenance required in the SFWMD Permit shal] be the responsibility of the Assoeiation which shall satisfy permit conditions. The success eriteria are described zn the SFWMD Permit. The Association shall also be responsible for the perpetual maintenance of any signage required by the SFWMD Permit. � � 7 - PMB_PMB_291712 UMAMOORIi .�. The Master Association, and the , shali have equal and independent riglits to enforce any and ali of the covenants and restrictions set forth in tl�e Declaration which apply to or are designed to protect the water management system which is a part of the Community Systems servicing the Property. Enforcement of these covenants and restrictions shall be by any proceeding at law or in equity against any person or persons violating or atteinpting to vialate any covenant or restriction, and may seek to restrain violation or to recover damages against the Parcels, Units and Owner thereof which violate any of the provisions of this Declaratioi�. Failure by the Association, or the � enforce any covenant ar restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter, nor shall such failure to so enforce create any liability on the part of the Association, or the . In any action or proceeding under this section, the prevailing party shall be entitled to recover its costs and reasonable attorney's fees including attorneys fees and costs on appeal. Section 11. Maintetiance Easement. The Common Aareas of the Property are hereby declared to be subject to a non-exclusive easement in favor of the Declarant, Master Association, employees and agents of either the Declarant or Master Association and of any management entity contracted by the Master Association in order that such employees, agents or management entity may carry out their lawful and proper duties and may have reasonable access to all portions of the Property dedicated ta the Master Association or to be maintained by the Master Association as elsewhere provided in this Declaration or any plat recorded relative to the Property or any portion thereof. Section 12. Master Association Easements. Tllere is hereby created an easen�ent in favor of the Master Association, and/or the ARB, as appropr•iate, and theiz- applicable designees, over each Parcel for the purpose of enteri�ag onto the Parcel to enforce the covenants in this Declaration, includizlg but not liinited to the provisions of Artiele IX hereof regarding the ARB and all standards, rules or regulations promuigated pursuant to this Declaration. ARTICLE V COVENANT FOR MAINTENANCE ASSESSMENTS Section 1. Creation of the Lien and Pez•sonal Obli�ation for Assessinents. Except as provided elsewhere herein, the Declarant (and each party joining in this Declaration or iz1 any Suppleinental Declaration), for each Parcel or Unit within the Property as to which it is tlie Owner, hereby, respectively, covenants and agrees, and each Owner of any Parcel oi° Unit now or hereafter subjected to this Declaration by acceptance of a deed therefor, whether or not it shall be so expressed in any such deed, other conveyarlce or hereunder, shall be deemed ta covenant and agree, to pay to the Master Association annual assessments or charges for the General Expenses of the Association which shall include but not be lzmited to maintei�ance, operation, management and insurance of the Common Areas and the Master Association as provided herein, including, but not limited to the Common Areas whether or not such items are on dedicated property or owned by Sub-Associations or otherwis�, including such reasonable reserves as the Mastei° Association may deem necessary, and capital improvement assessments as - 1 g - PM[3_PMB_293712--i/MAMOORI{ provided herein, all such assessments to be �xed, established and collected from time to time as hereinafter provided. In addition, Individual Assessinents may be Ievied against particular Owners, Parcels and Units for fines and expenses incurred against particular Parcels, Units and/or Owners to the excIusion of others and other charges against specific Parcets, Units or Owners as contemplated in this Declaration. The Annual and Special Assessments, together with late charges, interest and costs of collection thereaf as hereinafter provided, shall be charges on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with late char�es, interest and costs of collection thereof as hereinaiter provided, shall also be the personal obligation of all Owner(s) of such property from time to time, Section 2. Purpose of Assessments. The assessments levied by the Ivlaster Association slzall be used for carrying out any lawful purpose of the Master Association as provided in this Declaration, Articles or Bylaws, including but not limited to the improvement, maintenance, enhancement and operation of the Common Areas and to provide services whic[I the Master Association is authorized or required to provide including, 6ut not limited to, tlae payment of taxes and insurance, constructing improvements, repair, replacement, payment of the cost to acquire labor, equipment, materials, nnaiiagement and supervision necessary to carry out its authorized functions, and for the payment of principal, interest and any other charges connected with loans made to or assumed by the Master Assaciation for the purpose of enabling the Master Association to perform its authorized or required functions. The Master Association may establish reserve funds and/or contingency funds to be held in an interest bearing account or investments as a reserve for (a) major rehabilitation or major repairs and deferred maintenance, (b) for emergency and otlier repairs required as a result of storm, fire, natural disaster or casualty loss, and (c) for such other purposes as specitically determined by the Board of Directors of the Master Association. Section 3. Determination of Assessments. Assessments by the Association against each Owner of a Unit and his Unit shall be the percentage share of the total Assessments to be made against all Owners of Units and their Units subject to this Dectaration. Should the Association become the Owner of any Unit(s), the Assessment which would otherwise be due and payable to tl�e Association by the Owner(s) of such Unit(s) shall be apportioned and the Assessment therefor levied ratably among the Owners of all Units which are not owned by the Association. Section 4. Time for Pavment. The Assessmenf levied against the Owner of each Unat and his Unit shall be payable in quarterly, monthly, or such other installments and at such time as shall from time to time be fixed by the Board. Section 5. Annual Bud�et of General Ex�xses. The Board of the Mastei Association shall prepare and adopt an Annual Budget at a meeting of the Board to b� k�eld not less than thirty (30) days in advance of the comtnencement of each fscal year. The Annual Budget shalI project the estimated total expenditures for the services that are to be provided by tl�e Master Association and other expenses of the Master Association in the perfarmance of its funetions, duties and responsibilities under this Declaration, the Articles amd Bylaws of the - 19 " PMS_PMI3 293712 I/MnMOORJ[ Master Association. The Master Association shall, at the same tizne as it prepares the A2�nua1 Budget, prepare a schedule which sets forth the Aggregate Assessment pursuant to the Annual Budget and the amount of the Annual Assessment foz• each other Lot contained within the Property. To the extent that tlae Aggregate Assessment is insufficient to fund the services which the Master Association is authorized or required to provide, the Master Association inay levy and collect a Special Assessment to cover the cost thereof in accordance with the provisions of this Declaration and the Articles and Bylaws of the Master Association. Such Special Assessments may also be levied and collected for repaizs, services, replaceinezits or betterments necessaiy to be performed in the event of a casualty, catastrophe, Act of God or other unforeseen expenses of an emergency nature incurred by the Master Association. Such Speciai Assess�nents shall be deternlined and assessed by the Board in accorda�ice with salne proportionate shares provided herein for the Annual Assessment. Section 6. Special Assessments. The Assaciation, tI1POU�I1 I�S Board of Directors, shall have tlae power and authority, from time to time, to levy and collect Special Assessments from each Owner (except as to Units owned by the Developer as provided in Section of this Article) for tlle following purposes: the acquisition of real or personal property by the Association; payment, in whole or in part, of the cost of construction of capital improvements to the Pt•operty; the cost of construction, reconstruction, unexpected repair or replacemei�zt of a capital improvement, including the necessary fixtures and personal property related thereto; tl�e cost of maintenance or repair of any property which the Association is obligated to maintain hereunder; Association Expenses, if funds are not otherwise available therefor from Assessments or reserves; the expense of indemnification of each director and officer of the Association; and such other purposes deemed appropriate by the Board of Directors. All notices of Speciai Assessments �rom the Association to Owners shall designate the amount thereof and the date when due. All Special Assessments shall be levied on the same basis as Assessinents described in Seetion of this Declaration, and sl�all be collectable in such manner as the Board of Directors shall determine. The funds collected pursuant to a Special Assessment shall be used only for the specific purpose or purposes set forth in such notice. However, upon completion of such specific purpose or purposes, any excess funds wiIl be considered Common Surptus, or nlay, at the discretion of the Board, be applied as a credit towards future Assessments. Sectiozi 7. Individual Assessments. The Association, through its Board of Directors, shall have the power and authority, from time to time, to fix, levy and collect individual assessments ("Individual Assessments") against an Owner for the cost of repairs or replacements within or without the Property for which the Owner is responsible, but which the Owner has failed or refused to perform, and which fazlure or refusal has endangered or impaired the use or� value of other Parcels, Units or Common Areas within the Property, as determined by the Board. Individual Assessments shatl be collectible in such a inanner as the Board of Directors shalI determine. The Associatioi� may also levy Individual Assessinents against any Owners who hav�; caused the Association to incur special expenses due to willful or negl'zgent acts of said Owners or their families or guests. Tl1e Association shall have the right to file a lien against the Lot or Unit, as applicable, of any Owner not paying any assessment when due and xnay �oreclose sucl� lien as well as pursue any other remedies available to the Master Association, including but not lirnited to, those available under this Declaration, the Articles and Bylaws, as tl�e same may be ° 2O - 1'MB_PM[3_293712_I/MAMOOR7: amended fi tin�e to time. Individual Assessments may include a surcharge for administrative expenses incurred as elsewhere provided in this Declaration. Section 8.. Reserve Funds. Prior to turnover of control of the Association by the Declarant to Owners other than the Declarant, the Declarant may vote to waive the reserves ar reduce funding of the reserves for the first two (2) fiscal years of the operation of the Association beginning with the fiscal year in which this Declaration is recorded, after which time reserves may only be waived or reduced upon the vote of a majority of all non-developer voting interests votzng in person or by limited proxy at a duly called meeting of the Association. If a meeting of the Owners has been called to detennine to provide no reserves or reserves Iess adequate than required, and such result is not attained or a quorum is not attained, the reserves as included in the budget shall go into effect. Unless waived in accordance with applicable law, the Board, in establishing each annual budget, shall include therein sun�s to be collected and maintained as reserves for capital expenditures and deferred main�,tenance for Common Elem.ents and personal property held for the joint use and benefit of the Owners of all Units, as required by Section 718.1 12, Florida Statutes. F�rior to turnover of control of the Association by the Declarant to Owners other than the Declarant pursuant to Section 718.301, Florida Statutes, the declarant- controlled Association shall not vote to use reserves for purposes other than that for which they were intended witl�out the approval of a majority of all non-developer voting interests, voting in person or by limited proxy at a duly called meeting of the Association. Section 9. Contin ency Funds. In addition to reserves established pursuant to Section 8 hereof, the Board, when establishing each annual budget may, when deemed necessary or desirable, include therein a sum or sums to be collected and maintained as contingency funds to provide a measure of fizlancial stability durzng periods of special stress when such sums may be used to meet deficiencies from time to time exis�ing as a result of delinquent payment of Assessments by Owners of Units, as a result of einergencies or for other reason placing financial stress upon the Association. The annual amount allocated to such contingency funds and collected therefor, except as required by law, shall not exceed twenty-fzve percent (25%) of �he cui•rent amlual Assessment levied against the Owners of alI Units. Upon accrual in the contingency funds of an amount equal to twenty-five percent (25%) of the current annual Assessment, unless and except to the extent required by law, no further payments shall be collected from the Owners of Units as a contribution to such contingency funds, unIess t11ey shali be reduced below the twenty-five percent (25%) level, in which event, the annual Assessment against each Owner and/or Unit may be inereased to restore the contizlgency funds to an an�ount which will equal twenty-five percent (25%) of the cuirent annual amount of said Assessment. The Unit Owners may call a special meeting of the Assoczation or the Unit Owners may raise issues pertaining to the contingency funds at a general meeting of the Association as provided for in the Bylaws. Upon the affirmative vote of a majority of the Unit Owners, the Associatzon mav elect to z�educe the levels of the contingency funds below those stated above. Notwithstanding any provisions to the coi�trary contained above or elsewhere in this Declaration, in accordance with applicable Florida law, contingency funds for deferred rnaintenance will only be collected from Units and the Owners thereof with regard to Units for which a certificate of substantial completion or a certificate of occupancy {as tl�e case may be) has been issued. ' 21 - PMt3_PMB_293712_1/MnMOOR1: Section 10. Use of Association Funds. All monies collected by the Association shall be treated as the separate property of the Association. Such monies may be appIied by the Association to the payment of any expense of operating and managing the Association or the proper undertaking of all acts and duties irnposed upon the Association by virtue of this Declaration, the Articles of Incorporation and Bylaws. All the monies for annual Assessments paid to the Association by any Unit Owner may be commingled with monie� paid to the Association by other Unit Owners. All funds and other assets of the Association, and any increments thereto or profits derived theref'rom or from the leasing or use of Comtnon Elements, including, without limitation, Common Surplus, shall be held for the benefit of the n�embers of the Association. No member of the Association shall have the right to assign, hypothecate, pledge or in any manner transfer or encumber his membership interest therein, except as an appurtenance to his Unit. Section ] l. Delinquency or Default. The payinent of any Assessment or installment thereof due to the Association shall be in default if not paid to the Association on or before the date due. When in default, the delinquent Assessments or installments thereof shall bear interest from the date due at the highest rate perrnitted by law until the same, and aIl �nterest due thereon, has been paid in fu11. In addition, when the payment of Assessments is in default, the Association shall have the right to accelerate future Assessinents which would not otherwise be due and payable. Section 12. Liabilitv Not Subject to Waiver. No Owner of a Unit may exempt himself from liability for any Assessment levied agai�lst such Owner and his Unit by waiver of the use or enjoyznent of any of the Cominon Areas, abandonment of the Unit, or in any other manner. Section 13. Lien for Assessment. The Association is hereby granted a lien upon eac11 Unit and its appurtenant undivided interest in the common eleznents of the applicable condoi�linium, which lien shall and does secure the monies due for all: unpaid assessments wlaich are due and which may acerue subsequent to the recording of the claim of lien and priar t� the entry of a certificate of title, as well as interest and all reasonabte costs and attorney's fees incurred by the association incident to the collection process. The lien granted to the Association may be established and foreclosed in the Circuit Court in and for the County. Section 14. Recordin� and Prioritv of Lien. The lien of the Association shall be effective fi•om and relate back to the recording in the Public Records of the County of this Declaration. However, as to first mortgages of record, the lien is effective from and after the recording of a claim of lien as hereinafter descrxbed. The Association si�all file a claim of lien stating the Unit encumbered thereby, the name of the record Owner, the name and address of the Association, the amount due to the Association, and the date such amount was due. The claim oj� liei� shall secure all Assessments, plus interest, costs, attorneys' and legal assistants' fees, advances to pay taxes and prior encumbrances and interest thereon, wliich are due and which may accrue subsequetlt to the recording of the claim of lien and prior to the entry of a f�nai jud�ment of foreclosure. Such claim of lien shall be signed by an officer or agent of the Association. Upon full payment of all sums secured by such claim of lien, the same shall be satisfied of record. The lie�a of the Association shalI be subordinate in the following order of' priority to (a} ad valorem tax liens; and (b) the lien of any first mortgage held by an Institutiona] - 2 � - PMB_PMI3 2937t2 I/MAMOORL Moz subject, however, to the liability of such rr�ortgagee for assessments as }�rovided in Section 718.116 Florida Statutes. Pursuant to S�ction 718.120(1), Florida Statu�es, ad valc�rern taxes, benefit taxes and special assessments by taxzng authorities shall be assessed against each Unit and its appurtenar�t undivided interest in the common eleme��ts of the applicable co��dominium. Such taxes and assessrr�ents shall cc�nstitute a lien only upon the Unit and its appurtenant undivided interest in the common ele�ents of the app�zcable condo�nizazurr�, Section 1,5. Effect of �'oreclosure or Judicial Sale. In the event that any persc��z, firm or corporation shall acquire title to any Uziat and its appurtenant und`zvided �nt�rest zn t�e common elements of the applicable condoininium by virtue of any foreclosure or judiczal sale or any transfer in lieu thereof, then such person, firm or corporation so acquiring title shall o�lly be liable and obligated for Assessments of the Assoczation, Any assessments as to v�hich tl�e party so acquiring title s17a11 not be liable shall be absorbed and paid by all �wners of all Units iz�cluding the Owner acquiring title through foreclosure or judicial sale as � part of �I1e Association Expense, although nothing herein contained shall be corzstrued as rel�aszzlg tl�:e party personally liable foz such delinquent assessm�nt frorri the payment thereof or tl�e ealforceanent �f collection of such payment by zneans other than foreclosure. Sectzon 16, Effect of Voluntarv Txansfer. When the Owz�er of ar�y LTnit propc�ses to lease, sell or mortgage the same in compliance with other provisions of thzs I��claratioxl, the Associatian, upon written request of the Owner of such Unit, shall furnish wathin I S days after receipt of such written request, to the proposed lessee, purchaser or mortgag��, a st�t�x�nez�at stating all assessments and other monies wl�ich are due and payable to the �ssoczatzon by tlae Owner of such Unit with respeet to the Unit. Such statement shall be executed by ar�y off�c�r of the Association ai�d any lessee, purchaser or mortgagee may rely upon sucla statemealt in concluding the proposed lease, purchase or mortgage transaction, and th� Ass�ciation sha11 be bound by such statement. Itl the event that a Unit is to be leased, sold or mortgaged at th� tim.e when payment of any .Assessment against the Owner and the Unit wk�ach is due t� th� Ass�ciatic�al is zz� default (whether or not a claim of lien has been recorded by the Association), tl��� th� a sal� proceeds or inortgage proceeds, as the case may be, shall be applied by tk�e lessee, pazrc�aaser or nloi in the followzng order: (a) first to the payment of any then del'anc�uent 1�ssessznent or iz7stallznent thereof due to the Association; and (b) second, paym�nt of tlle baiance �1� such rerat, proceeds of sale or mortgage to the Owner of th� Unit responsibl� foa• paym�zat o#� sucla delinquent assesszx�ent. In any transfer of title of a Unit, the graz�tee shall be jointly ar�d severally liable with the grantor for all unpaid Assessments against the grantor made pric�r to the tianc of such transfer of title, without prejudice to the rights of the grantee to recover frorrz the grat�.tor the a�nounts paid by the grantee therefor. In addition, if the amount due zs not paid by the �rai�tor, the grantee shall pay the amouiat owed to the Association within thirty (30) days aftel� transfer oi� title. Secxion 17. No Election of Remeciies. ATl rigk�ts, rem.edies and przval�ges br�nted 10 the Associatzon or any Unit Owner pursuant this Declaration, tl�te �4rticles of Inc�or��ratic�r�, ° 23 - PMB_PNi3_293712_1/MAMOORr I3ylaws and(or) any rules and regulations promulgated by the Board of Dit•ectors �z�m tim� �o time, shall be deemed to be cumulative, and the exercise of any one or znore shall rzot be deemed to constitute an electian of rezx�edies, nor shall it preclude the party thus �xercising the san�e fro�n exercising such otk�er and additional xights, remedies, or �rivileges as may be available �o suc1� party at law or in equity. Section 18, �.esponsibilitv for Master A,ssociation �lssessments By Sub�Associatzons. Although eacl� Owner of a Parcel or Unit shall be personally obligat�d fo� the payrnent o#� assessments pursuant to this Declaration, zn the eve�zt there is formed or created St�b- Association(s) at any time in the future, it shall be the option of the Mast�r Associatzon to collect Annual Assessments froxn the Parcel and/oar Unit Owners through the Sub-Association(s) whicla shall zn turn collect each Parcel and or Unit Owner's proportionate share of tlxe Annual Assessment of the Master �ssociation, and the Sub-Association(s) shall remit san�� to the I�Iaster Association in the sanae time periods xequzred for payment direc�ly by the Pa�ce1 andle�r tlnit Ownex. In no manner shall the Master Association be obligated to utilize the Sub-�ssoczation as its collection agent, but may do so at its option and by written direc�ion to t�� Sub-�lssociatinn at the tiine of levying of tlie Ani�ual Assessment, ox any speczal ox emerger�cy assessnaent. Ir� x�o manner shall tl�e collectio� of Master Association assessmeiats through Sub-Association(s) be deemed to obvaate or waive any rigk�ts or remedies of the IVlaster Assoc�atiozl to proceed directly against Parcel and Unit Owners in the event of failure of ai�y Parcel oi• Ualit Owner to pay zts sliare of any assessment levied by the Master Associatio�;n pursuant to this Declaration. Il� the event the Master Association ilas delegated collection authority �o �ny pazticular Su�- Association, the xespective Sub-Association shall be iiable, in addition to each �pplicable I'az�cel and/or Unit Owner, for the Aggregate Assessment against all of the Parcels and/or Units located thereiz�. or otherwise under the jurisdiction of said Sub-Association. The due date of any assessment shall be fixed in the Roard resolution autI�orizing such assessment. 5ection 19. Common Areas and Certain Othez Exem�at Propert�. 1�10 Commoxz Areas hereunder or a�y common areas of a Sub-tlssoczation or common c;l�rnents of� a condominiuzn shall be subject to direct assessnrzent hereunder (although the shaz c�f co�n��aoi� elements appurtenant to a condominium unit shall be subject to the lien for assesszn�nts applicable ta such unit). The foregoing exemptzon shall apply to any land ov�ned by a govez•mi�ental entzty or publicly-regulated utility company (including, for exaz�ple, without limitation, Florzda Power and Light Co., Bell South and South Florida Water 1l�Ianagement District) as Jong as such land is used fiox or in connection with the �rovision of utilities (excluszve of business offices, retail outlets and the like). Any land withzn the Prop�rty wllich has not been platted by ilae Declarant or submitted to condoz�inium ownership shall not b� subj�et to assessment under this Declaratioil. In the event of any ambiguity or do�aht as to wl�ethez° any particular open space or other land is subject to assessment, the determination of th� Declarant (or if the Declarant is no longer a Member of the Master Association, then the Board of Directc�rs of the Master Association) shall be final and conclusive (and not subjec� to later change unless the use of the open space in questzon chang�s). ' 2 Q ° PivT$_PMB_293712_1/MAMOORE Unless delegated to a Sub-Association by the Master Association, at shall be legal du�y and responsibility of the Master Association to enforce payment of all assessrr�eizts l�er�under. Failure of a collecting ent�ty to send or deliver bills or notices of assessments shall not, however, z�elzeve Owners from their payment obligatic�ns hereunder, including Iate fees, interest, attorneys fees and costs. All assessments, late charges, interest, penalties, fines, attorney's fees and oth�r su�aas provided for 1lerein shall accrue to the benefit of the Master Associatior�. The Master Association shall have such other remedies for collectios� �nd enforcezxaea�t of assessmezzts as may be permitted by applicable law. All remedies axe intended to b�, ai�d s11a11 be, cumulatzve. Section 20. Subordination of the Lien. Tl�e lien of the assessments provided for in this Artic�e shall be subordinate to real property tax liens and to th� lien of any lirst n3ortgage recorded prior to recozdation of a claim of lien by the Associatior�, wh�c� first a�7o�kgage ei�cumbers any Unit and is in favor of any Institutional Ivlortgagee or is otherwise insured by FNMA or FHLMC and is now oi• hereafter placed upon a portaon of �he �roperty subject to assessment; provided, howevei•, that any such mortgagee when in possession, or any receiver, and i� the event of a foreclosure, any purchaser at a foreciosure sale, and any such xriortgagee acquiring title by a deed-in-lieu of foreclosure, and all persons claiming by, through or u�id�r any such purchasei• or such nnortgagee, sl�all hold title subject to the Izability aild li�i� of a�ay assessment coming due as of and after acquzsition of title by such foreclosure (or convcyaz�cc in lieu af foreclosure). The order of priority of liez�s hereunder shall be. ad valorern ta� liens, first ztiortgage liens held by an Institutzonal Mortgagee, liens for MastEr A.ssociatio�3 assessrrients and liens for Sub-Association assessments (af any). Any unpaid assessznent �vl�ich cana�ot be collected as a lien against any Unit by reason of the provisions of this Se�tion sha11 b� deemed to be an assessment divided ainong, payable by and a lzen against all Urzits as prc�vzded in tl�zs Articl�, �ncluding the Unit as to which the foreclosure (or conveyance in laeu of foreclosure) toolc place. Liens for assessments under this Article shall be superior to liens for ass�ssz�nents of the Sub-A,ssoc�atzoz�s wlxich may be referred to in I�eclarations of Condominzui� ox° of restrictions and protective covenants recorded with xespect to certain Units. In the event only a portion of the assessments of the Master Association at�d a Sub-Associatioz� ar� collect�d where �olle�tion is attempted by one entity for both, tl�e amount collected shall be app]zed first to assessxnents o� tl�.e Master Association and the balance, if any, shall then be paid to such Sub-Assaciatiori. The ainount collected shall be applied in order of the age of the assessz�aent tivith applicatioy� farst ro the oldest delinquent assessm�ent, where collection is made by one entity for both. In �dditzon, fees collected �or Master �ssociatian Assessrr�ents shall be applied an the following c�z fees and costs of collection, late eharges, interest, assessments. Section 21. Collection of Assessments. Ass�ssments levied pursuant ��reto slaall be collected in the manner established pursuant to this Declaratioz�. In th� event any �ub- Association provzdes for collection of Master Association assessments, �he �rovisions of t�ais Declaration shall govern, and all references hereix� to collection (but not .i�ecess�rily enfozcement) by the Master Association shall be deemed to r�f�r ta the S�ab-Assacaation - 2S - PMS_PMB_293712_1/MAMOORG performing such collection duties ax�d the obligations of �wners to pay assessinents shal� be satisfied by making such payments to the applicable Sub-Associat�on. When all Units and Parcels vvithin the Property are sold and c�nveyed to purcllasers �r are otherwise zao longer owned by D�clarant or when Declarant trai�sfers control of the �oard of Directors in accordance wzth the provisions of this Declaration, whichever occurs first, neitller the Declarant, nor its shall have further liability of any ki�d to the l�aster Association foz the pa.yment of assessments, or cantributions, whatsoever. Declarant shall have no oblzgatzofl� to fund reserves, of any kind, for the Association at any tir�e. Sectio� 22. Worlcin�Capital Contribution. Each initial purchaser of a�Init (othe;r thazl a I�eclarant designated builder or developer purchasing for construction and xesale, if any) shall pay to the 1Vlaster Association przor to obtaining approval of a proposed �urchase and sale transactioi� or other transfer of title to a Unit, a one time only working capitai contribution, the amount of which shall be deterznined by the �oard in its dASCretion, frc�i�� time to tiix�e. In tlle event the purcl�ase and sale transaction or other transfer of title is approved by the Master Association, the Working Capital �ontributzon shali be retained by tk�e Master Associ�tio��. I�a the evei�t the purcl�ase and sale transaction or other transfer of title is not ap�xoved in ac�,ordance with the provisions of tl�zs Declaration, the Workiz�g Capital Contributior� sl�all be returned to the purchaser. Tl�e use and expenditure of Working Capital Contributions retained by the 1�Iaster Association sliall be deterrrxiz�ed by the �oard of Directors, in its discretion. Section 23. Master Association Funds. The portrons of all At�nual �ssessments collected by the Master Association for res�rves for future exper�ses for �onting�r�cy funds, ai�d the entire amount of all Special Assessments, shall be held by the Master Asso�iation aa7d �xaay be i��vested in interest bearing accounts or in certificates of deposit, mor�ey marlce� accounts �r other lil<e znstruments or accounts available at banks or savings and loan �nstitutions, th� deposits of which are insured by an agency of the �lnited Sta�.es of A�erica. Section 24. S�eci�c Dama�e. Owners (on thezr behalf and on behalf of t�eix t�nants, cor�tractors, subcontractors, licensees, invitees, �m�loyees, officers, children azld guests) causifllg damage to amy portioi� of the Common Areas as a result of intentional acts, misuse, negtigence, failure to maintain or otherwise shall be directly liable to the Mast�r �ssociati�n and ata Indivzdual Assessmez�t shall be I�vied therefor against sucla O�vner or Owners ii the daa�nage is zlot paid for withi�l ten (10) days of biliing. Such Individu�l Assessments shal� be subject to all �f the provzs3ons laereto relating to otk�er assessments, includzi�g, but ilot limited to, tlze lien and foreclosure procedures. Notwithstanding the foregoing, the Master Assoczation has the rigl�t, b�tt not the obligation to enforce any remedies available to it as elsewhere provided 'an tl�ais Declaration, at law and in equity against the party responsible for ca�asing t�i� dainag�. ARTICLE VI MAINTENANCE ()F IJNITS AlVD PARCEL,S - 26 '" PMB_PMB_293712 1/M/aMppRi� The following inaintenance provisions concerning IJnits and Parc�ls �aithin th�:. ]Property are intended to describe those maintenance obligatiozls of Owners as to their respect�v� Par�els and Uziits. I�� addition to the maintenance obligatioz�s and responsibiliti�s d�scribed in t11is Article a��.d in other provisions of this Dec�aration, the Articles and I3ylaws, such ax�azntenance responsibiliti�s as may be zmposed by a Sub-Association shall be in addition �o and not ir� lieii of tl�e mai��tenance xesponsibilities of Owners described llerein. Section 1. Sub-Associations. l�ll of the requ�rements, obliga�iotls arld reflnedi�s set forth in this Article shall apply to all Sub-Associations and their �ommon areas or c�z�arr�ox� elemei�ts and all improvements thereta Accordingly, as applzed to a Sub-Assoczation, the term Ow�zer as used in this Article shall be deemed to include the Sub-Associataom (eve17 if it do�s i�ot hold legal title to its coinmo� areas and comrx�on elements) and the terrns Parcel �nd Unit sha11 be deemed to include a Sub-Assoczation's comrne�n areas and commmn e�e�aents and ail iznprovements thereto. Any costs of remedial vvork or sureharg� thereon applicable to a Sub- Association shall be paid directly by the Sub-Association, failing which the Ivlaster Associatzon may, in addition to all other available legal and equitable reznedies, �withhold the aanount of sain� from aznounts collected on behalf of the Sub-Association, if any, ar�d the I�Iaster Associa.tion is hereby granted a lien on such amounts for such purposes. Notwithstanding the foz•egoing, notl�ing contained in this Declaration shall be deemed to obligate the Mas�:er Association t� act as a collection agent for any Sub-Association ox the Master Associat�ota. Section 2. Exteriors of U��ts and Buildings. Subject to tl�ze �/Iaster Association's acceptance of mai�tenance responsibilities of the ext�riors of Units and buildings, az� its sole and absolute discretion, each Owner shall maintain or cause to be maintained aI1 str�etures (ia�cluding all Ui�its and buildings) he owns zn a neat, orderly and attractive manner atad consistent v�ith the general appeara�ce of the Property as determined by the Board whicll znay deieg�te that taslc to the ARB. The minimum (thougk� not sole� standard for the foregoing shall be �oi�sist�p�cy a�1d compatibility with the general appearance of the developed �ortAOns of the Comrnu�ity �l�d, as to each Parcel, the portion thereof upon which the Unit is located includzng landscaping. �;ac� Owi�er shall repaint, restaxn, or refinish, as appropriate, the exterior poi�tzons. af his tJy1i� or building (witlz the same colors and materials as initially used or a�proved 1�y �eclarant and/oi tlie "AIZB') as often as is necessary to comply with tk�e foregoing standards. Section 3. Parcels. Eacl� Owner skZall maintain the trees, shrubb�xy, grass �nd c�ther landscaping, landscape irrigation, and all parkiz�g, pedestriai�, recreational and other o�en ar�as, on his Parce� in a neat, functio�ling orderly and attractive manner and coz�sistent wi�h the gen�ral appearance of the developed portions of the Property. Each Owner o� a Parcel shall ���aintaiza all lawz�s and landscaping thereon The minimutn (though not sole) standard for �h� foregc�ing shall be tlie gez�eral appearance of tl�e Property (and the applicable partion thereof as aforesaid} as initially Iandscaped (such standard being subject to being automatically r�ised by �irt�ae �f the natural and orderly grovvth and maturation of applicable landscaping, as properly tritnnled and znaintained). The Board of Directors of shall have the power, but not the oblAgation, to adopt minimum m,aintenance standards in connection with each Parcel and Improvez�nents located thereor�, Such - 27 - PNrs_PVre_���>>z_vMnn�ooRr standards shall be in addition to those obligations of Owners as stated in this A� ai�ad naay be chaz�ged from time to time by the Board of I)irectors ii1 its sole diseretion. /�ny �ninimurrz inaintenance standards established pursuant to this Article need not be recc�rdede Section 4. Remedies for Noncomplianc�. In the event of the failuz of an Owner to maintazn or cause to be znaintained, h�s Unit, any building or Parcel �n accorda�lce �aith tllis Article, the Master Association or applicable Sub-Assoc�ation (whicla,ever at the time 1�as ihe powel� or duty to enforce this Article) shall have the right, but not the obli�atiox�, �pon �ve (5) days, pxior written notice to the Owner at the address for such Owner last ap�earzng ii� tlne records of tlie Master Association, to enter upoil the Owner's Parcel or Unat and perforna such woi•k as is necessary to bring the Parcel or Unit, as applicable, into com�I�ance vaitll the standards set forth in this Article and as may be determined by the I3oard of I�irectoxs frora7 ti.rne ta time. Such work may include, bttt shall not necessarily be limit�d to, the cutting/trimz�ing of grass, trees and shrubs; the rerr�oval (by spraying or otherwise) of �eeds and othez• vegetatioz�; tlie resodding or re-planting of grass, trees or shrubs; the repainti�g �r restaining of exterior surfaces of a Unit or; the repair of walls, fences, roofs, doors, windows, swima��rsg �ools, and other portions of a Unit, building or other structures on a Parcl; cov�ring �r sei•vi�ing swilnnrzzr�g pools and such other rennedial woxk as is judged a�ecessary by the applicable enti�y. �'h� re�x�edi�s provided for herein shall be c�mulative with all other remedies availabie under tl�is I�eclaration, ar otl�er applzcable covenants or deed restrictions (incltiding, without limztation, the itnpositioi� of fines or special assessments or the filing of legal or equitable actiozis, th� Fi�ing of lier�s fs�r tl�is work plus attorneys' fees and costs). Seciion 5. Costs of Remedzal Work° Surcharges. �n the event that tl�e Master Association, or an applicab�e Sub-Association, perforrris any r�medial �ork on a Urzit, build���g or Parcel pursua�.t to this Declaratzon or any Supplemental I�eclaration, the costs aa�d e��ezlses tl�ereof shall be deex�ried an Individual Assessment unde�° this I�eclaration and znay l�e iinnr�ediately imposed by the Board of Directors or its designee. In order to dis�ourage C)wz�ers from abandoning certain duties hereundex for the purpose of rec�uzring one o� th�; afor�said entities to assume saxne, and, addztzonally, to reimburse sarr�e for administra�ive �xp�nses incurred, the applicable entity may impose a suarcharge of not more than ffty percez�t (50%) of tlae cost of the applicable remedial work (or the maxinr�um amount �exanitted by ap�Izcable law, whichever is less), such surcharge to be a part of tl�e aforesaid Indiv�dual Assessmer�t. No bids need be obtained for any of the woxk performed pursuant to this .Artgcle and the persozl(s) or company performing sucl� work may be selected by tl�ze applicable enforcing entity iz� iis sa�i� discretion without requirement of any bonds whether fidelity, labor, materials, p��yznen� ox performance. Every Owner agrees for h�znself and family members that t��ey will ��old I�arml�ss the Association, its Ofticers, Directors, agents and employees from any aetioi� ulzderta.lcen pursuant to this Section. Sectio� 6. Ri ng t of Entrv. There is hereby created an easemen� an favor of tlae l�astex Assoczation and/or the applicable SubmAssociation, as appropriate, and th�ir applzcable designees, over each Parcel for the purpose of enterin.g onto the Parcel in the perfc�z•rnance of the worlc herein described, provided that the notice requirements of this Artiele are c�rnplied with and any such entry is during reasonable hours. - 2 � ` PMB_PMS_293712_UNiAMOORF A.R.TICLE VII CERTAIN �ZESTIZICTIONS. RULES AND RECJULATION� Section 1. ApplicabilitX. The provasions of this Article sl�all b� applicable tc� the Property (or tl�at portion thereof as may herein:after be specified) and the use thereof but sh�ll not be applicable to the Declarant or any of its designees, or any Parcel, LTnzt or o�h�r property owned by Declarant or its deszgnees. If requested by any interested party, Declarant shall give a wriite� statemez�t as to whether any particular person or entity is exempt froxn the provisions of this l�.rtxcle and to �vvhat property and for what period o£time such exemption applies. The party receivin� such siatement sl�all be entitled to rely thereon and such statement shail be bindzng on Declarant, the 1VIaster Association, all Sub-Associations and all otlaer relevant persons and entitzes. Section 2. Sub-Associations. All of the restrictions, requirelnents ar�d obligatao��s set fortl� in this Article shall apply to all Sub-Associations, if and when such Sub-Associations come into existence, and to their common areas, coznmozl elements (and all improvements thereto) and their uses of all or any portions of the Propeziy. A.ccordingly, as applied to a Sub-Association the term Owner as used in this Article shall be deemed to include tJhe Sub-Ass�ciatioaa (�vex� if it does not hold legal tztle to its corr�mon areas or common elements), the terrris Lot and �Ja�iti s11a11 be dee�ned to include a Sub-Associatioz�'s corrirrgon areas or commo� elements (and all iinprovements thereto) �nd referenees to activitzes or practaces of Owners s17a11 be deein�d to iiaclude activzties or practices of the Sub-�ssociation (regardless of �vhere saz�e c�c�ur). Section 3. Land Use and �3uildzn_g Tv_�e. No Parcel shall be used excep� f�r reszdez�tial purposes. No bui�ding constructed on a Parcel shall be used except for residea�tial purposes, except for such ancillary or otk�er corr�mercial uses as app�icable zoning cc�des and otlicr laws and ordina�ces may permit to be �nade of portions of �therwzse reside�l�ial b�ildings. However, witl�out limitiz�g the genexality o;f the foregoing Section, texn.porary uses by i���larallt and its designees for znodel homes, sales displays, parkAng lots, sales offices �r�d othex oflices, or any one or any combination of such uses, shall be permitted until permanent cessation of such uses talces p�ace. No cJhanges may be made in buildings er�eted or approved by tdze l�eclar�nt (except if suc11 clzanges are made by the Declarant} without the written cor�sent of �eclara�lt, the ARB or its Sub-Association counterpart, as appropriate and as provided herein. Section 4. Easernents. Easements for installation and rnaintenaz�ce of util�ties and Comrnur�zty Systen7s are resexved as shown on the r�corded plats covering alI or �c�l•tioi�ts of the Property and as provAded herein. The area of each Parcel covered by an easei�ent a�1d all improvements zn the area shall be maintained con:tinuously by the Owner of t?ne Parcel, except as provided hereiz� to the contrary and �xcept for installations for whzcll a public authority or utility company zs respox�sible. The appropriate water and sewer authority, electric utzlity coxnpany, telephoi�e cozx�pany, the Master Associatio��, t11e applicable Sub-Asso�iation, i�eclara��, and ats ° 29 � PMB_PMB_293712_1/MAMOORE successors and assigns, shall have a perpetual easement for the znstallation and maintenance, all underground, unless the ARB approves otherwise in writing, of �vater lines, sanitary sewers, storm drains, and electric, telephone and Community Systems lines, cables and conduits, uzader and through t11e u�ilzty easernents as shown on the plats or as may be created by sepai°ate a�vrifiten document recarded among the Public Records of Palm Beach County, Flor�da. Section 5. Nuisances. No immoral, noxious, offensive or unlawful activity sl�all be carried on within the Community nor shall a�iything be done therein or thereon v✓hich zr�ay ve or become an annoyance to the Community or other Owners. No nuf sance shall be �er��itted vaithin the Pi•operty nor shali any use or practice be permitted whzch is or b�comes a source o� an�aoyance to the Owners or which interferes wzth the peaceful use and possessi��a tk�ereof by the Ownet•s. Additionally, nothing shall be done or maintained on ar�y Parcel or L1nit, upon any Corni�non Areas or upon the common areas or comrnon elerrients of any Sub-Associatzc�z� which will increase the rate of insurazice on any LTnzt, the Comtnorz Areas or ot�er portions c�f tlie Property, or result in the cancellation thereof. Nothing shall be done or rrzaintained in a7�y Parce] oi• Unit, upon Common Areas, or upon the coxnman areas or corr�rr�o� eletnents of aa�y Sub- �ssociation which will be in violatzon of any law, ordinance, statute, regulation, or rule �f any govermnental authority having jurisdiction over the Property or portion thereof or in vi�lation of any provision of this Declaration, the Articles or Bylaws as they may be amended frorr� tzme to time oz iz� violation of any rules and regulati�ns which may be proinuigated by the Board of Directors from tiine to tizne, as elsewhere provided herein. No wast� sha�I be committed upc�i� any Parcel, in any Unit, the Coinmon flreas or any othcr portion o� t1�e Property. Notwithstanding the foregoing, each Owner hereby acknowledges that the ongoing znaintena��ce activzties by the Master Association more particularly described in Arti�le , Seetior� of this Declaration, shall be deemed as not constituting a nuisance and such activiti�s and tl�e parties performing them shall be s�ecifically exeinpted froin this provisiora. Section 6. Temporar,y Structures. No structure of a tez�porary cl�a�act�r, or tzailer, nnobile home or recreational velaicle, shall be permitted on any Parcels witl�in the Co�nzr�unity at any tiine or used at any time as a residence, either temporarily or permanently, �xcept by tl�e Declaraz�t or any designee of Declarant so long as Declarant or its designee owns one I'arcel. I�c� gas tank, gas container or gas cylinder shall be per�nitted to be placed on or abo�t the outside of any Unit or on or about any a�lcillary building, however, underground propane ta��lcs shall be permitted with prior wxitten approval of the AIZB. The foregoiz�g restrictions on gas ta��ks, gas containers and gas cylinders shall not apply to service stations or �amilar facaliti�s ox any othex lawful comtnereial uses, however, such uses are subject to approval of Declarant and th� I°�asier Association. Section 7. Si ns amd Flags. 1Vo sign of an.y kind shall be displayed io the public vz�w on or from az�y Parcel, except sig�s on models displayed by Declarant or zts designc�es, ar alaxzn company signs not exceeding _ by and located within (_) feet of any ei�atrance to a Parcel. No sign of any kind shall be peri�ztted to be placed inside a Resideiatial �Jnit wl�zch is vzsible outside the Unit or on the outside walis of such Unit nor on any fen�es within reszdei�tial portions of the Property, nor on the Connmon Areas, nor on dedicated areas, nor on entryways, nor on any vehicles within the Property, except such as are placed by the I�eclaran.t or another - 3 � - PMB_P�B_293712_l/MnMOORG �erson or entity authorized in writing by Declarant to do so. Without lzmiting the g�i�zerality of ai�y other �lrticle hereof, in the event that similar rec�uirements of a Sub-�ssociation or tl,e County are xn:ore restrictive tha� t�:ose set forth herein, such more restrictive requiren�ents shall supersede and control. No sign for the resale, lease ox other transfer of a Parcel oY• Unit shall b� permitted within the Property nor shall any sign be displayed on, upot�, or vaitlain: any motor vehicle. The foregoing restrictions on signs shall not apply to signs er�cted by Declaraz�t or its designees. In addition, any subsequent modification, replacement or removal of such s�gn by Declarant ox it designees shall not be subject to any approval by the I�aster Association, tl�e ARB any Sub-Association or an.y Owner. To the extent signs are originally �errnitted by Declarant oar the ARB to be erected on the F'roperty, such permisszor� is sub�ect t� subsequent modification to permit additional or diffexent signage. Section 8. Oil and Minin�peration. No oi1 drilling, oiI dev�lopment operations, oil refining, quarrying or mining operations of any kind shall be permztted upon or �vith�al the Property, nor on dedicated areas, nor shall oil wells, tanlcs, tunnels, minera� �xcavations oi° sl�afts be perinitted upon or within the Propei°ty. No derrick or other structure designed f�r use �i� boriz�g for oil or z�atural gas shall be erected; maintained or permitted upon any portioz� of the laild subject to tlzis Declaratzon, Such oil or other storage tanks shall be subject to the arcllztectu�•al desigtl standards and approvals as set forth elsewhere in this 17eclaxatic�il ai�d as �thez��vise required by applicable la�v, rule or regulation. Sectzon 9. Pets, Livestock and Poultrv. No animals, reptiles, wi�dla�e, livestocic or poultry of any lcind sl�all be raised, bred or Icept on any Parcel or within any Unit, except nc� znor� than (^) household pets may be l�ept, provided they ai•e not kept, bred or znaintaii�eci fo�• ai�y �or�mercial purposes and provided that they do not become a rzuisance oz• annoyance to any nezghbor by reason of barking, noise, or otherwise. All animals must be lcept o�a a leash wlaera they are outside the Owner's Unit and must not be allowed to run Ioose. 1010 dogs or other p�ts shall be permitted to laave excxet�ons on ar�y Coinmon Areas, and Owners sha11 be responsable ta clean-up any such improper excretions. For purposes hereof, "household pets" sha1l �ean dogs, cats ar�d other animals expressly permztted by the 1Vlaster Association, if any. �ets shall also be subject to all applicable rules and regulations as inay be promulgated and azriended by thc �3oard of Directors fi•om tixxze to time. Nothing contained herein shall prohibit the k�epi��ag c�f fis12 or doinestic (household type) birds, as long as the latter are ]cept zz�doors �z�d do not becom� a source of a��noyance to neighbors or other residents in the Property. TIZe �oard �laall have tlle right to impose fines and to require the removal of any pet from the Owner's �,ot oz L1nit if tlzat pet causes an unreasonable source of anxloyance to any Owner or resident witl�in the Pxoperty, or if this pravision or any rules and regulations promulgated pursuant hereto ar°e vio�atc;d wit1� respect to the pet. Section 10. Visibility at Intersectioz�s. No Owner, its guests, lesse�s, and znvitees �x�ay cause or perm;it obstructions to visibility at street intersections or Coznmon Area za�tersections, - 3 � ` PMB_Pi1�IB_293712 1/MAMOORG Section 11. Boats. Trailers. Campers and Commercial Trucks. IZ�strzction5, ii�any, on boats, trazlers, campers and commercial trucks (particularly as to tl�e parking or stoxage tl�er�o� shall be imposed and enforced by the applicable Sub-Assoczations; provided, �o�vevea•, that nonc of the same shall be parked or stored on Parcels or within the Co�zaziaon Areas unless �vithi�l an enclosed garage, if the Master Association prohibits such parking or stoz•ag� by regulatzons or otherwise. No vans, exce�t �assenger vans, having full permanent seating capacity for at least five (5) passengers, excluding the driver and szde �vvindows installed sha�l b� placed ox parked u�on the Property. Passenger vans as defined herein, znay only be kept, stored or parlced �vitllin an ez�closed garage. No trailers or habitable motor vehicles of any nature zz�otorcy�les, trucks or "pick-ups" or vehicles having printing or advertisin�,g on exterior surfaces or vzsihle from the exterior shall be kept, stored, or parked on any part of the Prap�rtye Servxce vehicles not owned or operated by Owners, their families, lessees ar guests that are intended to provide service to Parcels, Units or Irxiprovements, may be temporarily parked on the Pr�perty during da�lzght hours. No boats, on or off trailers, may be parked on any part of the Property exc�pt in az� enclosed garage, nor shall any maintenance or repairs be performed upoi� ang� boat o� n�otoz• vehicle. No vehicles, including service vehicles, sha11 be permitted to park ai� str�ets overnzght or between tk�e hours of 12:01 a.m. and 7:00 a.m. Subject to applicable laws and ordinances, any vehicle parked in vzolation of tl�ese or other restrictions contaiz�ed hereiil or iz1 the rules and regulations now or hereatter adopted may be towed away by or at the request of the Master Association at the sole expense of th� ovvn.ez° of such vellzc�e if such vehicle remains in violation for a period of twenty-four (24) hours from the time a notice of violatzon is placed on the vekaicle or, if such vehicle is eausing ara obstructiozl or safety hazard o�1 the Comnr�on Areas, aza such lesser time period as the Master Association, in its sole discretion, determines. Tl�e Master Association shall not be liable to the v�l�zcle's ovvz�er or ai�y Owner for trespass, con�ersion, property da�age, or otherwis�, nor guilty of any criininal act, by reason of suck� towing arad once the z�otice is posted, neither its rernoval, nor failure c�f th� owner to rece�ve it for any other reason, shall be grounds for reiief o£ any kind. F�r purposes of this paragraph, "vehicle" shall also mean vans, campers, nriobile homes and trailers. l�n af�davit of t11e persozl postiiag the aforesaid notice stating tl�at it was properly post�d sha11 be coi�clusive evider�ee of proper posting. Section 12. Garba e and Trash Dis�osal. No garbage, refuse, trash or rubbish shall be deposited except as perznitted by the Master Association. The requiremei�ts t�o�n tarrie to time of tile appl'zcable governmental authority, trask� collection compaary or the l�Iaster A,ssociatioz� (whicl� may, but shall �ot be requzred to provide solid waste removal s�rvices) �or disposal or collectiozi o� waste shall be corr�plied with by Owners and tlleir guests or ii�vitees. All equiptnent for the storage or disposal of such nnaterials shall be kept zn a clean and sazai�ary condition. All solid waste shall be placed in containers which slhail comply with the standards adopted by tlae Master Association (or the ARB) for such conta�ners. The ARB ii� its sol�; discretion ar�ay desig��ate a standard style and type for containers. Garbage and trasl� to be removed anust �e placed at curbside or other designated location no earlier than 6:00 p.m. the evening before ' � - PMS_PN1B_293712 1/MA1vipORL-. collection and such containers must be rerr�oved from the designated pick�p locatio� as soo� after the pickup as is practicable, but in no event by later than 6:00 p.m. ot� the day of colle�tion. Section 13. No Drvin�. No portion of the 1'roperty other tlaar� inside a LJnit and not visible from the exterior shall be used as a drying or hanging area for laundry of an� lcir�d. Section 14. Unzt Air Conditzoners and Reflective Materials. I�10 air co�ditzoning �z�azts may be mounted through windows or walls. No building shall have any aluminum foil placed in any window or glass door or ar�y reflective substance or other matez (except standard wz�.dow treatments) �laced on any glass, except such as may be approved by the AIZ.� or its equivalent for energy conservation purposes. Section 15: Renewable Resource Devices. 1Vothing in this I�eclaratzon slaall be deemed to prohibit the installation of energy devices based on renewable resources (e.g., solar collector panels); provided, however, that same shall be installed �nly in acc�rdazace �ith the standards adopted from time to tirrze by the ARB and its Sub-Associatior� couz�ztexpar�. SucI1 standards shall be reasonably calculated to rnaintain the aesthetic �ntegrzty of the Prop�rty. Section 16. Trees. Shrubs and Arti�cial Ve�etation. No tree o�° shrub may be cut down, destroyed or removed from a Parcel, LJnit or Sub-Association coinixaon area or common element wzthout the prior, express written cansent of the AIZB. No artificial grass, plants c�r other arti#icial vegetation, or statues, sculptuz�e, or sculptural landscape dec�r, shall be pla�ed or nnaintained upon the exterior portioz� of any Parcel or Unit wathout the aforesaid ARB consent. Ir� the event any tree, shrub or any other vegetation is destroyed by winds, �re, frost, freeze ar othei• natural or artificial action, the Owner of the Parcel or Unit upon which such tree, shrub ox vegetation is located shall be responsible to replace the same with tr�es of s�milar type and lcinl with the prior consent of the ARB. Section 17. Exterior Li�htin az�d Skvli hts. All exterior lighting and sl�ylights shal� be subject to prior approval by tlle ARB. Section 18. ]Fences and Walls. Tk�e compositiosz, locatzon, color, d�sig�a, stru�tur� and height of any fence oz wall to be constructed on az7y Lot is subject to �he �ritten a�proval of thc ARB. The ARB shall, arnong other things, require that the compositic�n of ar�y fence or wa11 be consistent with tl�e znaterial used in the surrouz�ding buiIdirzgs and otl�er fences, if ar�y. Sectioz� 19. Mailboxes. No mailbox, newspaper box or ra.ek or other receptacle of a�,y lcind for use in the delivery of maii, newspapers, magazines or szrrlilar zx�aterial sllall be ei•ected on any Lot without the appxoval of the ARB as to style, size, color, installati�ra az�d Iocation. T1�� ARB, iz� its sole discretion, �nay designate a standard style and type of mailbox. If and wl�en tlxe United States Postal Service or the newspaper or newspapers involved shall iradicats a willingness to mak� delivery to �vall receptacles attached to Units, eackZ Ownex, oiz the rec�u�st of the ARk3, shall replace the boxes or xeceptacles previously empioyed fc�r such pur�ose o� purposes with wall receptacles attached to dwellings. "' 33 - PNB_PMB_293712_I/MAMOORF. Section 20. Utility Connections. Perzna�zent build�ng �onn�ctions foi a11 tatil�ti�s installed after tk�e date hereof; including, but not limited to, water, se�ver, gas, electricity, telephone, cable and television, shall be run underground from the proper cor�nectzng �oints tc� the building structure in such a manner to be acceptable to the governing utility authorzty, T'he foregoing shall not apply, however, to transmission lines, transforrr�ers and oth�r equipinent installed by public utility companies or as part of the Community Systerx�s. Section 21. Construction Schedulii��. No outdoor construction or developrn�z�� activity of any lcind will be permitted wzthin the Property on Sundays or legal k�olidays vaithout the express prior written consent of the Master Association or the AR�, The A.IZ� znay, in its sol�; discretion establish hours within which construction may be perforzned. Section 22. Off-Street Motor Vehicles. No motorized or battery po�aaered vel�icies may be operated on paved roadways and drives e�cept as specificalty approved ir� wrztii3g by tl�e Master Association. "All Terrain Vehicies" ("ATV are prohibited froxn beit�� 1<ept, used or drivezl on any portion of the Praperty. Off-�treet Motor Vehicles operated by the iVl�ster Association or its contractors, subcontractors or designees, are exempted fror�a this �ection. �11 znotorized vehicles operated on the Property, whether on or off paved roadways ai�d drives, i�ust be operated by a driver with a current valid driver's license ar�d such driver m�ust have co�nprehensive liability insurance coveriz�g such vel�acle in an amount to be determined �rom time to time by the �lssociatzon. The Association may request the owner of the ve�zcle to prc�vide proof of such liability znsurance in a form reasonably satisfactory to ihe Associa�ion, Section 23. Stora�e and Meter Areas. All storage areas of any kind �pon an�y Parcel, and all �eters and similar areas located upon any such Parcel, shall be completely screened fro�n view frozn the exterior of the Parcel by a wall, fence or mature landscap�ng inaterial in a zn�nne�• acceptable to the AIZB. Section 24. Rental and Leasin�. The Master Association shall hav� the z�iglat, but not the obligation, to adopt rules and regulations governzng the rental or leasirag o� Unzts within the Property including, without limitation, establishing minimum lengths foz� the terins of rentals or leases and liinits upon the frequency of rentals or leases. The rules and regulations govexning rental or leases may vary between specific residential areas or neighborhoods of th� Property andlor on tl�ze basis of building types (single family, condomznium, etc.) as the �oa�•d of Di�•ectors, in its discretion, deerrzs appropriate. Suc11 rules and regulations need not be record�d. Section 25. Bicvcle Stora�e. Bicycles and similar devices shall be stor�d only w1tl�in Units. In the event bicycles or similar devices are left on the C'omtno� Ar�as, they inay bc; impoui�ded by the Master Association and shall be released to the Owner only �zpon pay�nent of an adnlinistrative fee establzshed by the Master Association. Suck� an administrative fee s1�a11 be an Indivzdual Assessment enforceable pursuant to the procedures set fortll in Art�cle of this Declaration. The Declarant and the Association shall have the right but not the obligatzo�a, to iznpou��d and store bicycles or similar devices and after sixty (60) days of storag� dispose c�f same. Declarant, the Association, thezr respective employees, officers, directors a�1d desigzaees ' 3 � ' PMB PMB 293712 1/MF�MOORL" sl�all have no liability for damage to or loss of bicycles while irnpounded of° i� the event of disposal of bicycles or similar devices. Section 26. Auction Prol7ibition. No Parcel, Unit, Improvemez�zts therea�l or any interest thexein shall be sold, rriarketed or conveyed by auctzon, nor sl�all auctio�s of r�al ar personal property or interests in real or persor�al property be conducted within the Property. Garage sales or other similar sales are prohibited frorn being conducted �n any Parcel, Unit, Coin�non Areas, Sub-Association common areas or commoz� elements. Notwithstanding tl�e foregoing, this Section sl�all not prevent auctions upon the Common Areas for chai•itable purposes, which auctions shall be subject to tk�e express prior written approval of the Master Association. Section 27. Gara�es. Garages shall only be used for the storage of automobil�s, golf carts, ar�d other uses al�thorized herein and shall n�t be permanently �nclosed or �onv�rled to other uses. All garages shai� be equipped with fu11y operational automatic garage door opeilers activated by a remote control garage door opener and all garage doors r��ust be closed, ex�ept when vehicles are entering or exiting frorn the garage. Each Owner shall be responsible for maintaining his own garage door opener in g�od working order at all times at the Ovaner's sol� cost and expense. Section 28. Noise. No Owner shall knowzngly ox �villfully rnake, �reate or allova to be made or created by his guests, Iessees or invitees, �ny unnecessary, excessive or o�fet�si�e noase or dzsturbance which destroys or interferes with the peace, quiet, ai�d/or �oznfort af tl�e O�v�1�rs or other residents of the Property. Sectzon 29. Hazardous Waste. No flammable, toxic or hazardous subs�ance of a�1y type may be stored or lcept on any Parcel or Unit or discharged therefr�rri by ai� Ov,���ex �a� violation of any law, rule or regulation. Each Owner hereby indemnifies and l�olds l�arariless the Declarant, its partners, officers, directors and empl�yees, and tl�e Mas��r A,ssociation, its Officers, Directors, ernployees and agents fron� and against azay and ali claims, damages or losses of any kind that tnay be imposed upon or asserted against them ariszng out of or froi� any hazardous substance lcept, stored or used upon any Parcel or Unzt. �'his �ndemnificatz��� sl�all survive the sale by an Owner of his Parcel or Unit. Section 30. Huntin�. Hunting by �reann, bow and arrow, or in any other zxaannez slaall be and is expressly prohibited on or within the Property or any portior� th�re ��: Sectio�� 31. Additional Use lZestrictions. The �oard of I3irectors may adopt such additional use restrictions, rules or regulations, applicable to all or any portion or portzoYZS of th� Property and to waive or nr�odify application of tl�e foregoing use restrictions w�th respec�t to any Parcel(s) or Unit(s), as the Board, in its sole discretion deezns appropriate. A, walver oz� lack of enforcement of ozle or more restrictions shall not be construed as a waiver �f all siini[ar restrictions in future situations. Tk�e Nlaster Association shall have full enforcem�nt zights notwithstanding any prior waiver. Any additional restrictions need not be recc�rded aznong tl�e Public Records of Palm Beac� County, Flor�da. - 3 S - PMB_PMB_293712 UMAMOORE AhZ'I�ICI,E �IIII COMPLIANCE AND ENFORCEME�T Section 1. Compliance by Owners. �very Owner and Su�-Associati�n, and 11i�/its tenants, guests, invitees, officers, employees, contractors, subcontractors a�d agents shall comply witli any and all rules arzd regulations adopted by the Master Association as contemplated herezn as well as the covenants, conditions and restrictions of this Declaration, as tl�ey �nay he ainez�dcd from time to tixne. Section 2. Enforcernent. Failure to comply with this Declaratioil at�d/oa any of such rules or regulations shall be grounds for immediate action by the Associatioz� whicl� nnay include, without limitation, an action to recover sums due for daxilages, inju��ctive relief or any combxnation thereo£ The Master Association shall also have the right to suspend z to use t��� Comznon Areas as specified herezn. Section 3. Fines. In addition to all other remedies, and to tl�e maximurr� extent Iawful, in tl�e sole discretion of the Board of Directors, a fine or fines may be imposed upon aa2 �wszei° oi• Sub-Association for failure of an Owner, Sub�Association or any of tk�e other parties d�s�rzbed hereinabov�, to coznply with their obligations under this Declaration oz° �zth aray - r�ale o� regulation of the Master Associatzon, provided the follow��g procedures are adh�red to: A. Notice: The Master Assoczation shall z�otify the Owner or �ub-A.ssociatioza of the infraction or infractions. Included in the notice shall be the date and time of a s�ecial zrzeeting of th� Board of Directors at which time the Owner or Sub-Association shall present reasons why fines should not be �znposed. At least fourteen (14) days wrrtte�� notzce c�f' such meetiz�g shall be given; B. He_ arin�: Tlie non-coinpliance shall be presented �o a c�mmitt�e of at least three (3) members a�pointed by the Board of Directors who are not of��ers, directoz•s or employees of the Association, ar the spouse, �arent, child, brother or sist�r c�f an of£'icer, direcgor oC employee (the "Committee"). The Committee shall hear reasons why a fine sllc�uld not be imposed. A wxztten decision of the Comxn�.ittee shall be mailed to the Owner or Sub-l�ssociation by not later than ten (10) days after the Corrzzrz�ttee meeting; C. Amounts of Fines: The Coznmittee (zf its or such pamel's fnd'zngs are zx►ade against the Owner or Sub-Association) may impose a fine against �he rJv�r�e� oz• Sub- Association zn an amount not to exceed One I Iundred Dollars ($100.00) p�r vzolati�n. A, fine may be levied on the basis of each day of a continuing violation, with a single notice az�d opportunity for l�earing, except that no such fine shall exceed One �'l�ousand 3�c�llars ($1,000.00) in the aggregate. I�. Application of Fi�aes: All monies received from fines sh�ll be allc�cated as directed by the I�oaxd of Dzrectors; and ° 36 - PMB_PMI3_293717_7/MAMOORF, E, Non-exclusive Remedv: Fines as pravided herein shald not be constr�ed tc� be an exclusive xemedy of the Master Association, and shall exist in additior� to a11 otl�er rights and remedies to whzch the Master Association may be o�l�erwzse legally e�t�tled. A#zzae 1evi�d by the Master Association pursuant to this Section may not become a lze�� against an Owner's Lot or Unit or a Sub-Association's common areas or common elements. ARTICLE IX ARCHITECTURAL AND DE'VELOPMENT REVIEW• GENEIZA�, PO�VERS Tlie following prov�sions of this Articie are subject to those of the �inmedxately succeeding Article hereof. Section 1, Members of ARB. The Architectura� and Developme�t IZevieiv Board of tl�e Master Association, which is soznetimes refexred to in this Declaration as t�e 66 AF�I3", sl�all initially consist of three (3) meinbers. The initial meinbers of the ARJ� sha11 consist of tllr�e (3) persoi�s designated by Declarant. Each of the initial members designated by Declarant sha11 ��old office until all Units and Im,provements plaruled for tkae Property l�ave been cons��ucted and conveyed (if appropriate), or sooner at the option of Declarant. Declarant sl�ali have th� rigl�t to reznove and replace the respective ARB Membexs appointed by it at any tzme and �ron� time t� time. Therea�ter, each new rnember of the ARB shall be appointed by the �oard of I�irectors and shall hold off ce until such time as he has resigned or has been removed or his su�c�ssor has been appointed, as provided herein. The size of the ARB may be cha��g�d at any time to a maximuzn of (__) members and a rr�iz�imum of three (3) members in tlle discretion of the Board o� Dxxectors. Members of the AIR.B may be rernoved at any time w�tl�out cause, subject to tl�.e rzghts of th� Declarant as aforesaid. The Declarant or the Board, after tu�°nover of control to the Association, shall laave the right, in its sole discretion, to appoint or hzre prof�ssional consultants to the A,RB. Such consultants rnay include, but not be lzrnit�d to, ar�Y�itects, engineers, landscape engineers and other design professionals. Th� members of the ARB may, at the discretion of the �oaz•d of I�ireciors, be compensated for t�leir services in which event such coznpensation shall be a Ceneral Expense of the Master Association. The ARB m�ay, with the approval of the 73oard of Directol•s as to amaunts, require tlla payment of a non-refundable filing fee as a conditiol� tc� t1�� consadez•ation of a�1y matter presented to it, such fees to be applied to the compensatzon of tlae AIZ�3 m�rrrabers and otller expenses of the AF.� (including, without limitation, overk�ead, developmerlt review, eniozcement and other Master Association expenses reasonably allocabie to t�ie I�.RP). In addition to the power and duties set forth hereinbelow, the A.IZB sl�all have the r�ght and duty to enforce such development review, architectural control, maint�na�c� and othcr rec�uirements and restrictions irr�posed on any portion of the Property by I�eciarant (by way of specific deed restrictions or contxact) as Declarant shall, in zts sole discretion, �f at all, �lect to have it enforce (subject at all times to I�eclarant's xight to modify or revoke such xzghc and duty), Such electioig may be made by Declarant in the applicable deed restrictions oi• by way of an ° 37 ' PMT3_PMB_293712 IMnMOORE exclusive or i�on-exclusive assignment of Declarant's rights to en�orce saia�e. F�riher, �7eclaraz�t rxiay provide for specific criteria and procedures to be used by the A� in such regard (subject to later inodification), absez�t such provisio� the ARB shall proceed in the mani��r set forth in ihis Article. Unless otherwise specifically provided by the Declarant ir� the applicab�e instrument, the rights and duties of the ARB shall not be delegable to a Sub-Association. Section 2. Construction Compliance De�osit. The Ow�er �r- b�ilder of any �lnits, addition, pool or other Improvements to a Parcel wil� be required to delzver to t�a� I�aster Associatioi� a deposit in an amount establzshed by the �oard frorn time to tirn�, Sucl� deposit slZall be delzvered prior to or along �vith any plans and specificat�ons subrriitt�d to the A.IZ� for approval. Tlie deposit shall be held by the Master Association to ensure compliance by tlae Ow�er andior builder with all provisions of thxs I�eclaration, staz�dards of the ARJ� anci all rules and regulations prornulgated by the IVlaster Association or AIZB pursuant to this Declaratio�. The N�[aster Associatiom shall cause the deposit to be placed in a separate escrow acco�nt, a��d interest earned thereon, if any, shall accrue to the benefit of the Master �ssociatgon. The Master Associatio�n shall give the Owner and/or builder written not�c� of a�y failure to comp�y wzth the provxsions, standards, rules, or regulations described above. If t��e Owner and/or builder does not cure the problem within five (5) days of the date o�'the notzce, t1�e Iv�aster Association inay, but is not obligated to take corrective rr�easures as zt deems appropriate iz1 its sole discretion. Tl�e cost of any such cor�rective rneasures shall be d�ducted frorn the deposit. The Owi�er a�7dlor builder shall promptly pay to the Master Associatzor� any �rrlount so pazd ouc, so that tl�e full deposit is held by the Master Association at ail times. In th� evez2t the depc�szt is znsufficient to cover the cost of such corrective action, the Owner and/ox builder shall pay to tl�e Master Association any balance to cover the full cost of' the eorrective action, tlpon eorn�letion of the consteuction, the Owner a�d/or builder znay apply to the Master Assoczation for a refua7d of' the deposit. Tl�e Master A.ssociation znay establish policies regarding such de}�c�szts provzdizlg for retentzoil of a percentage to defray adn:�inistratzve casts. Section 3. Review of Pro�osed Construction. Subject to other ap�lzcable Sect�or�s below, no building, femce, wall or other structure or improvement (including, but not lirz�ited to, landscapii�g or other improvements or changes thereto of any kind) shall be co�nmenced, alt�red, removed, painted, erected or maintained o� the Property nor shall any addition, rern�val, cl�ange or alteratzon (including paint or exterior finishizag) visible from the exterior of aziy Unit be made, nor shall any awning, canopy or shutter be attached to or placed upon outszde �alls o� ro�fs of buildings or other Irxzprovements, until the plan.s and speczficat�ons showing t11e x�ature, lcind, sl�ape, height, materials and location of the saxne shall have been subanitted to, and approved zaa writing by, tl�.e ARB (after first having been approved by a Sub-Associ�tioil or architectur�l control committee thereof, if any, and if zequired by the AIZ�, whicla requireinent �aay be imposed after the initial submission for approval), The requiremezlts atld �ro��d�axes of tl�is Article shall also apply to common areas, and comrx�on elements of Sub-�sso�zations. The ARB s11a�1 ap�rove proposals or plans and specifications submitted for its approvai ol�ly af it deems that tlle cot�struction, alteration, removal or addition contemplated thereby in tl�� locatio�a(s) indxcated will not be detrimental to the appearance of the Comznunity �s a whole, azad that th� " 3 � "° PMB_PML_293712_i/MAMOORE appeai•ance of any structure affected thereby �vill be in harmony with the s�rrounding struct�res and is otiaer�vise desixable. If the proposed construction, alteration, rem�val or additioa� zs to common elerrzents of a condoma�zum, said approval shall also be subject to tlie prior approval oS� the applicable condominium associatioi�. The ARB may conditioza its approval of� proposals and plans and specifications as it deems appropriate, and may require s�bmission o� additional plans a��d specifications or other information prior to approving or disapproving znaterial s�abznztted. The ARB may also issue rules or guidelines setting forth procedures for the subn7issioz� of plar�s for approval. The ARB may require such detail in plans and speci�catio�s submitted for its review as it deerz�:s proper, including, withaut Ixzx�itation, floor plans, sit� �lans, drainage pians, elevation drawings, landscape and landscape irrigation plans and specifications, and descriptions or samples of exterior materials and colc�rs. Until receipt by the AR�3 of aIl required plans and specifications, the ARB may postpone review of any plans submitted for approval. Upon sucla receipt, the Al2B shall have thirty (30) days in which to accept or reject any proposed plans or request rn.odifications to such plans and, if the ARB does not xeject or request modificatio��s to same within such period, sazd plans shall be deemed approved as submitted. The deciszon of the ARS shall take precedence ovex any architectural review boards of Sub-Associations, i�' any. All changes and alterat�ons of Owners' Uz�its and landscaping and other Improverrients wl�ether structural, color, style or otherwise, shall also be subjcct to all applzcabl� permit requirements and to all applicable governrnental laws, statutes, o�dinances, rules regulatioi�s, orders and decrees. ARB written approval of any changes and alierations m�st be obtairaed prior to application to any governmental authority. T11e provisions of this Artiele shall apply not oniy to Parcels a�nd �1n�ts, but also to commoi� areas or comznon elements of Sub-Associations. All construction on the Property, with the exception of constructzozl by �eclarant, sl�a�l be subject to such rules, regulations, design and construction standards, and setbacic a��d building xec�uirements as may be promulgated by the Board and/oar ARB from time to time. Section 4. Meetings of the ARB. The ARB shall meet from tiine to time as necessary to perfozzn its duties hereunder. The ARB ixzay frozn time to time, by resolutior� ui�animously adopted zn writing, design�te an AIZB representative (who znay, but need not, be on�: of its members) to take any action or perform any dutzes for and on behalf of the �,RB, exce�at tlie granting of varia��zces as hereinbelow provided. In tl�e absence of such designatioz�, �he vote c�f a znajority of ineznbers of the ARB shall constitute an act of the AR�. Sectior� 5, No Waiver of Futu� rovals. The approval of the l-�I�� of any proposals or pians and specifications or drawings for any woric done or �roposed, or in connection with any other matter requzring the approval and consent ot the l�.R13, shall not be deerned to constitute a waiver of any �right to withhold approval or consent as to any similar proposals, plans and specifications, drawings or rr�atters v�hatsoever subsequeiltly or additiozlally submitted for approval or consent. - 39 - PufB_PMB_293712 1/MAMOORF Section 6. Inspection of Work. Inspection of worlc and corr�ctioz� of defects tlaex�in shall proceed as follows: A. Upon the completzon of any work for whiclz approv�d plans are requ�red under th�s Article, the a�plicant (who may be an Owner or an appropriate Sub-Associat�oia) for sucli approval (the "Applzcant") shall give written notice of completion to the AIZ�; B. Within �fteen (15) days thereafter, the A� or its duly authorized represezltative may inspect such improvement. If the AkZB finds that such work was not effected in substantial compliance with the approved plans, it shall notify the Applicant in writ�ng af sucla noncon�pliance within sucla fifteen (15) day period, specifying the particulars of i�oncomplzazace, and shall require the Applicant to remedy the same; C. If, upon the expirati�n of thirty (30) days fxom the date of su�h notificatioz�, the Applicant shall have failed to remedy such noncor�plian�e, the AR� shall notify the Board in writi�ag of such failure. The Board shall then deterznine w�ether ther� �s a. noncompliance and, if so, the nature thereof and the estzmated cost of correcting or ren�ov�ng th� same. If a noncorrzpliance exists, the Applicant shall remedy or z�move the same wit?�isa a period of not inore than thirty (30) days froin the date of annauncement of tlze �oard rulzi�g. If ilie Applicant does not comply with the Board ruling wzthin such period, tl�ze �oard, a� i�� option, ix�ay authorize the improvem:ent as it is, remove the non-complying iznprovement ox xei�nedy the noncoinpliance, or pursue any other remedies available to it under thls I�e�lar�.tion and at daw and i�a equity and the Applicant shall reimburse the Master Associatiora, upoi� d�marad, for aIl expenses incurred in connectio� therewith, plus an administrative charge to be determined by t1�ae Master Association. If such expenses are not promptly repaid by the Applicant to �11e 1Vlaster Association, the Board shall levy an Individual �.ssessment against such Applicaiat ai�d his }�arcel or Unit for reimbursement. In the ever�t said Appllcant is a Sub-Ass�ciation, 2he afore�ner��ioned Individual Assessment sliall be levied against all U�its in the Sub-Associati�r� in propo� to their respective sllare of the common expense of said Sub-Association9 and D. If fox any reason the ARF3 fails to notify tl�e Applica�t cs1F �,7y noncoxnpliance within sixty (60) days after receipt of said wxitten notice of completio� �ron� the Applicant, the improvement shall be deemed to have been znade in accordance wzth said approved pla�zs, unless such fazlure to notify is due to excusable neglec�, or would cz�eate a laazdship on other Owners as determined by tl�e ARB, E. In addition to, and not in lieu of, any other remedies provided to the .�SR� �z1 thzs Article, the ARB shall have tlle right to seek injunctive and other r�lief for the temporary ar�d permazlent suspension of activities in violation of the requirerrzents of thzs Article. After proper zaotzce to the party in violatiozz and opportun�ty to c�re, the A.RB �nay, i�a its sole discretion file such lawsuits and other judicial and adminzstratzve proce�dings seekir�� to enforce the remedies granted in tk�is subsection and elsewhere stated zn thzs 17eclarationa Section 7. Non-Liability of ARB Members. Neither t�ae A�ZB a�csr any rncza�zber thereof, r�or its duly authorized representative, shall be liable to the Master Association, az�y Sub- " 4'O m PMB_PMB_293712 ]/MAMOORE hssociation, or to any Owner ox any other person or entity for any loss, damage or injury arising out of or in a�y way connected with the performance or non-pexformance of the AR�°s duties hereunder. The ARB shall review and approve or disapprove all plans subz�itted to it for any proposed improvement, alteratzon or addition solely on the basis of aesthetic consid�ratioa�s az�d the benefit or detriment whicli would result to the xmmediate vicinity azld to the Coznrnunity. Tl�e ARB shall take into consideratxor� the aesthetic aspects of the architectural deszgns, place�ent of buildiz7gs, landscaping, color scl�emes, �xterior finishes and materials and/or some of �he procedures se� forth herein and, wlthout limiting the genexality of other applicable provisions l�eieof, znay alter the procedures set forth herein as to any such applicant. Section �. Sub-Associations. Notwithstanding any exercise of any develop�nent review/arcl�itectural control functions as to Parcels and .Units by a Sub-�.ssoczation �ursuarzt tc� a delegation n�ade by the Master Association, the ARB shall exercise, and every Sub-Associatic�n shall be bou�d by, the provisians, requiretrients and procedures �f this A.rtzcle, �vhic�7 sha11 at all times apply to all Sub-Associatioz�s and their common areas or commor� el�nzents. Section 9. General Powers of the Master Association, 1 he 1�iast�r Asso�iatio�z (ancd the ARB, as approprzate) shall have the absolute power to veto aray action taken or �onte��plaged to be taken by a Sub-Association, and the lalaster Association shall hav� the absoliate pow�r tc� require speci�c actiori to be talcen by the Sub-Association in connection w�th applicable sectioils of the Property. Without limating the generality of the foregoing, the l�aster Association (az�d t1�e ARB, as appropriate) may veto or disapprove any decision of any Sub-Association (or developxnent review board or other comrzzittee thereo�, and the 1Vlaster Asso�iatioi� anay requiz�e specific znaintenance or repairs or aesthetic changes to be eff�cted, require that a propos�d budget include certain items and that expenditures be made therefor, veto or camcel any �onlxa�t providing for n�aintena�ace, repair or replacemertt c�f th� property gover�aed by sucl� S��- Association and otherwise require or veto arzy other action as the Master Assaciation deea��s appropriate frorn time to time. The 1Vlaster Association shall not be liable to any Sub�Associatioi� or any Owner by virtue of any exercise of the Mast�r l�ssociation of its riglats pursuaa�t to tl�is Declaration. Section 10. Exceptions �rom AR� control. Notwithstamding the forebc�ing Sections o�' tlazs Artiele, the ARB shall to have jurisdiction over, and the reqz�irerz�ents co��tained aiz th�s Article sliall not apply to, the Declaarant or any parties as may be designat�d by i�ec�axai�t. Section 11. Declarant Abprovals. Notwithstanding the foregozng provisioz�zs or anything else ta the contrary mentzoned zn this Declaration, any approval by t37e �eciarant conceziaing proposed constructzon, developznent, structur�s, irx�provements, znodifications �r aiter•ations, shail be de�med to satisfy the requirements of this Article IX and shall l�e givet� the full weight and authorzty of an approval of the Architectural and Developrraen� lZ���eiv �oard pursuant to this Article IX, � 4 � - PMF3_PMB_293712_i/NAMOORF AIZTI�L� X MASTER ASSOCIATION: SU�-ASSOCIATIONS AND DECLAIZAI�IT Section 1. Preamble. In order to ensure the oxderly developrr�ent, o�eratioi� azad maintenance of the Property and the properties subject to the potential administratioi1 of Suh� Associations as integrated parts of the Property, this Article has beeaa pr�i�aulgated �ox tl�� purpose of (1) giving the Master Association certain powers to �ffectuate s�ch goal, (2) providing for intended (but not guaranteed) economies of scale and (3) establishing the fraznework of the mechanism through whzch the foregoing may be accomplished. Section 2. Cumulative Effect: Conflict. The covenants, restrictions and �rovisxoals of this Declaration sk�a41 be cumulative with those of the Declarations for th� Sub-Assoc�ations, if any, provided, however, that in the event of conflict between �r among any such covenants, �•estrictions and provisions, or any Articles of Incorporation, Byiaws, rules aa�d regulatioa�s, policies or practices adopted or carried out pursuant thereto, those of the 5ub-Association sha11 be subject and subordinate to tllis Declaratian. The foregoing priorities sP�all ap�ly, but ric�t be limited to, the liens for assessments created in favor of the Master Asso�iatiora ai�d the Sub- Associations (as provided elsewhere herein). Section 3. Development Revie�v, Ivlaintenance and �Jse Restrictior�s. Tl�� Master Association (through the AR�) shall exercise tl�e architectural eontrol/d�v�lopment review functions reserved herein, subject to the development review and approva] rigl�ts csf� tl�e Declarant. Further, the ARB shall caxry out the f�nctions prov�ded to be carried o�zt by it hereunder, notwithstanding the fact that a Sub-Association does likew�s� vvitkain its jurisdictiom; provzded, however, ihat in such case (i) any submission to the AR.B ne�d be accc�mpanied by tlle approval of the subject matter thereof by the applACable Sub-Associatiozl(so tha� the AR� ���ed not consider any subinission to it prior to the approval of such subinissions hy all lower applicable associations which have a right of such approval, (�z) the review pei•iod of sidch a submisszon shall be shortened to thirty (30) days and (iii) a disapprovai of the l�R� sd�aall supersede and control over az� approval of a lower association. Eacl� of the Master Association and Sub-Associations shall have th� power to ei�force tlleir ow�1 respective use restrictions, provided that in the event of conflicg, the rr�are strir�gent i�estrictions sl�zall control and provzded further that if a Sub-Associat�an fails to enfozce its respective restrictions, the Master Association shall have the absolut� right, but not tl.le obligation, to do so and to allocate the cost thereof to the applicable Sub-Assoc4ation �✓hicl�a s1�a11 proinptly pay for same or reimburse tk�e Master Associatzon. Section 4. Dele�ation of Other Duties. The Master Association shall l�ave the �•ight, but not tl�e obligation, to delegate to a Sub-Association(s} on an exclusive or non-�xclusive bas�s, such duties as the Master Associatiora shall deem appropriate. Suc1� delegatiozas shall b� i�ade by written notice to the Sub-Association, �vhich shall be effective z�o earlier than tl�irty �34} days from the date such notzce is given. Any delegation made pursuant hereto may be modai"ied or �•evolced by the Master Association at aray time. ° 42 - PMB_PMB_293712_7/MAMOORL• Section 5. Rcceptance of Dele�ated I��zties. Whenever the :�liaster Assoc�atioz� delegates any duty to a Sub-Association pursua�t hereto, the Sub-Associa�ion shall be dee�ned to have auto�natically accepted same and to have agreed to indemnify, defend and hold harrn�ess the Master Associatio� for all liabilities, losses, damages and expenses (including attor�aeys, fees actually izlcurred and court costs, through all appellate levels) arising frorzi or �onnecied wit�� �11e Sub-Association's performance, non-performance or negligent performance thereof Section 6e Certain� Reserved Functions of the Masfiex Association. In tl�e declaratiorl or siinilar instrumezlt for any Sub-Association, the following powers, rigl�ts azld duties (and all remedies necessary and convenient to exercise or enforce same) are hez��by reserved to tlae Master Association and/or ARB, as appropriate whether or not so stat�d �hexein (unless subsequently waived or delegated in a written instrument expressly intended to l�ave su�h effec�): A. all restrictions, requirements, duties and proc�dures as to mazntenance o� Units and Lots, restrictions, rules and regulations and developrnent review as sa�ne apply �o St�b- Associations, their coxnmon areas or cominon elements and ac�ivities withiii the �'roperty, Owners and their Parceis, tJnits and actzvities within the Property (paxticu]arly, but witlaout lizr�itation, as to activities wzthin the Cominon Areas) and B. any and all provisions of this Declaration as to Own�rs and theiz° Parcel�, Units and activities to the extent that a Sub-Association is initially responsible therefor but laas failed to perfozm such respon:sibilitye As used in tka.is Sectior►, the term Owner shall inciude any fami�y m�flnher, gu�st, tenant, agent, invitee, licensee, contractor or subcontractor of an Owner. �4.ny actzon taken by tk�� Master Association or the ARB pursuant to this Sect�on shall not alter, vvaiv� or ir�apair the Master Associatiozi's or ARB's xzght to coralpel a Sub-Association to tal�� any act�oza r�quired of it in tl�e same or different instances. T'urther, in the event that a Sub-Associataora fails to talcc az�y action required of zt hereunder, under its own declaration or pursuant to a delegatior� rnade pursua�xt to this Article, the Master AssocAat�,on shall have the additional, �aota-exclusive rerzl�dy of imposing a reasonable fine on such Sub-Associatzon if such failure co�atAnu�s for anore than fifteen (15) days after notice is given by the Master Association. �1RTICLE XI DECLARAIVT CONTIZOL OF MAS'TER ASSO�IA�'IOI� Section �. Control of Assoczation. When fifteen percent (15%) of tl�e Unats o�1 tl�e Property that ultiznately will be subject to this Declaration have been conveyed to rmembers, the Unit Owners other thaz� Declarant will be entitled to elect not less thatl c�ne-third (1/3) of tl�� meix�bers of t17e Board of Directors of the Master Assoczation. Owners other than 7eclarant sha�l be entitled to elect not less than a majority of the members of the Board of �irectors of the Master Association upon the first to occur of: - 4'3 - PMB_PMB_293712_I/MAMpQRF (a) three years after 50 percent of the Units that dvill be s��iject lo tlae �1laster Association have been conveyed to purchasers; (b) �hree months after 90 percent c�f the �Tr�its t17at will be subject t� the 1V�aster Association have been conveyed to purchasers; (c) when ail the Units that will be operat�d subject to the Master /�ssoczation have been coznpleted, some of them have been conveyed to purchasers, and none ��' t11e othez•s are bei�g offered for sale by the developer thereof an the ordinary course of ba�siness; (d} when some of the Units have been conveyed to purcllas�rs and none of th� others are being constructed or offered for sale by the developer thereo#' z� the orc�inary cc�uxse of business; or (e) seven years after recordation o#'this I�eclaration. Declara��t shall have the right to elect all members of the Board of I�irectors c�� the �ssociataon which Unxt Owners other than the developer are not entitled to elect as long as the developer o� the U�Zits subject ta this Declarati�n holds for sale in the ordinary co�uz of d��sixless any Unit(s), and the Declarant shall be entztled to elect not less than one (1) member of the Board of Dir�ctors of the Association as long as the develaper th�reof holds. for sale �n the �rdz�aary c�urse ot� business at least fzve percent (5%) of tl�e �Jnits subject to this 17eclaration. Notwithstanding t11e foregoing, Declarant shall be entitled at any time to waive ir� �✓riting its r�ghts her�urtd�r, and tl�ereafter to vote in elections fax members of the Board of Dizectors of the Association z�a �l�c sarr�e manner as any other Unit Owner of the Association, except for purposes of r�acc�uirdng contral of the Association or selecting the majority members of the �oard. Sectioz� 2. Declarant Responsibility After Transfer of Corztr�l, AlI Owi�ers, tlleir assigns, guests, tenai�ts and invitees do hereby acknowledge and agree that upon Declarant's transfer of control of the Master Association in accordance with this Article, I��clarant shall no longer have any responsibility, obligatzon, or liability of any kind whatsoever �vith respec:t �o the Property, Comzxzunity, the Association or the maintenance and administratioz� th�;reo�, or any otller matter xelating directly or indirectly thereto, it being intended that upon transfer of co��trol ii� accordance with this Artzcle, De�larant shall be relieved of all obligations, r�sp�i�sibilities and liabilities, including, but not limited to thosa existing under this D�claratxon, the Articles and Bylaws, as they rriay be annended from time to tirneo Notwithstanding the foregoing arad anytl�ing else coi�tained in this Declaration, after tran�sfer of control, Declarant shall continue t� retain tl�ose rights, powers, reservations, easements, estates and interests existing in f�vor of I�eclarant as described in this Declaration, the Articles and �ylaws and in any othez docuz�ezit or znstxument granting, reserving or describing such Declarant rzghts, powers reservatzons, �states and znterests, unless and until the later of: Declarant no longer owns any Lots o� Llnits - within t�ae Property or has expressly terminated such rights, povders reservatzons, �asements, estates or interests by written instrument executed by Declarant. - 44 " PMT�_PMB_7_93712 1/MAMOORr AlZ'd'ICLE XII TRAIVSFERS OF LTNITS Sectzon 1. IVotice to Master Assoczation. Upon transfer of title or any interest th�rein by a LTnit Owner it shall be the responsibility of such Ui1it Owner to provide varitten notic� of suel� transfer to the Master Association or its designated agent, which raotice will include, at minimum, a copy of the recorded Deed or other instrument of coi�veyance o� title or a�� ir�terest in title to the grantee, together with the mailing address, phone number and, if available, e�r,nail address, of the grantee which shall, upon receipt by the Master �ssociati�n, be entered into tl�e ofiicial records of the Master Association as the reeord address of the O�vner of �he Urzit. The Master Association assumes no responsibility or liability to investigate the Public Recoxds c�f the County or any other public or private records to det�rmine the ownership of azly �Jnit and s1�a11 be the continuing responsibility of the Owners of Units to comply with the iequirernents of this Section, and Owners of Units and their grantees shall be jointly and s�verally lrable for compliance herewith. AIZTICLE XIII INSURANCE Section 1. Insurance Covera�es. T1ae Association sJhall puxcl�aase and maintazz� a policy of compreheziszve general public lzabzlity iz�surance r�aming the Assoc�atiora and :I�e�laz•ant as insureds. Coverage shall be in an amount to be determined from time to tir�e by th� ��ard c�f Directors, in its sole discretion, but not less than Million Dollars ($_,000,000.00) sii�gle coverage and combined coverage of zzot less than Million I�ollars (�_,000,000.00). Coverage shall include liability of the Association and Declarant for bodily injury, deatl� and property damage. Any such policy will provide that it cannot be �ancell�d or substantially nlodi�ed without at least thirty (30) days prior writtei� notice to the Association and �3e;clarant, Each Owner is responsible for purcliasing azld maintaining a policy of cotnprel�er�sive gc;xaeral public liability insurance providing coverage for his Lot or Unzt. Section 2. Waiver of Subro atzon. As to each policy of insurance rr�aintained by tl�� Association which will not be voided or impaired thereby, the Association Iaereby waives an.d releases all claims against the Board, the Owners, the Declarant and the oflicers, dirc�tors, agents and employees of each of the foregoing, with respect to any loss covered by such insurance, whether or not caused by negligence of or breach of any agreement by said perso»s, but oz�iy to the extent that insurance proceeds are received as compensation for such Ioss. Section 3. Other Insurance Covera�es. The Association shall maintazn sucl� otl�er insurance coverages, zncluding, but not lilnited to, a policy oi insurance or �delity bond r�aming the �1.ssociatioxl as tlae �nsured or as oblzgee to protect the Associatioz� against ti�e wrc�zagful a�ts or omissiozzs of any officer, director, trustee, agent or employee of the Assocaation and all of� the persons who handle or are responszble for the handling of funds of, ox funds adininistered i�y the Association in such amounts aiid upon such terms as the �oard of Diyectors de�zns n�;c�ssary. - 45 - P1�iB_PMI? 293712 I/NiAMOORL The Association may also obtain Workrrian's Com�ensation Insurance and other liability insurance as it deetns desirable insuring each Owner and the ASSOCI�tI011 aaad l3oard from liability in connection with the C�mmon 1�.reas. The premiums for all insu�an�e coveaa�es obtained by the Association shall be and are hereby declared General �xpei�ses and included it� the Annual Assessments and Special Assessments znade agaznst Owner�_ Section 4. Declarant Named As Insured. Whenever the Association is required to purchase and maintain a policy of insurance or bond which sl�all, according to the tca•ms of this Article XV, name Declarant as an insured, such obligation to name the Declarant as ara insured shall cease upon Declarant's conveyance of title to the last Lot or IJnit in the C:oinrz�unity owned by Declarant. AIZTICLE XI`T GENEIZAL PROVISIONS Sectzon 1. Duration. The covenants and restrictions of this I�eclara�ioz� sl�all r�z1 wit11 and bznd tl�e Property, and shall inure to the benefit of and be enforceable by the Decl�rar�t, tl�e Master Association, any Sub-Association, the Owner of any land subject to tl��s I�e�laratioi� a��d the ARB, and their respective legal representatives, heirs, successors and assigns, for a�erm ox fifty (SO) years from the date this Declaration is recorded, after which tim� sazd covenants shall be autoznatically extended for successive periods of ten (10) years each unless an ii�struznent sigzaed by tl�e then Owners of seventy-five percent (75%), and the mortgage,�s o� onc-liundred percent (100%), of the Lots and Units agree�ng to revoke said cove�ants has been r��oz�d�d at�.d Declarant has given its prior written consent thereto. No such agreeanent to r�vok� shali b� effective unless inade and recorded three (3) years in advance of the effectzv� dat� �t si�ch. agreerz�ent az�d u��less written notice of the proposed agreement is sent to eve� Ownez� at l�ast ninety (90) days in advance of any actio� talcen, Section 2. Assignment. Any of tlle rights, po�vers, rreservations, ob�zgatzoias, easeinents, estates and interests reserved by, or granted to the Declaz or ti�e Master Association may be assigned in whole or in part by Declarant or the Master Associatzon as tlle case may be. Any such assignment shall be in writing and recorded �n the I�ublic 1Ze�ords o# t11e County. A#ter such assignment, the assignee shall have the same rights, powexs, estates and interests and be subject to the same oblzgations and duties as vaere the Decl�rant or �i�e IVlastex Association prior to the assignment, and the I�eclarant and IVlaster Association shall �e relieved and i•eleased of all obligatioz�s with respect to such rigl�ts, powers, rese�vatic�r�s, obligations, easements, estates or interests. Sectzon 3. Notice. Any notice required to be sent to any Member or Owner u�dex �h� provisions of tlzis Declaration shall be deemed ta have beezi properiy sent when �ersozaally delivered or znailed, postpaid, to the last known address of the persan wha appears as the �Joting Representative for that Lot or Unit on the records of the N�aster Association a� tlze ti�n� o� suc,1 mailing. Ii shall be the duty of �ach Sub-Asso�iation to keep the Master 1�.ssoczatio�z advis�d of� - 4'6 - PMF3_PMI3_293712 1/MAPvi00RF. tl�e zlames and addresses of the Sub-Association's meznbers and any changes tl�eretc�. Notwithstanding anything to the contrary in the foregoing, zt shall be the duty of �ach Ovaner to notify the Master Association of the Voting Representative for such Owr�er's I7nit. Section 4. Enforcement. Enforcement of these covenants and restrictzons shall be accomplished by means of a proceeding at law or in ec�uity against any person or }��rsons violating or attempting to violate any coven.ant or restriction, either to r�strain violatzon �r t� recover damages, and against the land to enforce a�y lien created by these covenants; and failure of the Mastex Association, the Declarant, the ARB, any Sub-Association or any p�i�ex to enforce any covenant or restrictzon herein cor�tained shall in rzo event be d�err�ed a wa�ver of the a•ight to do so thereaf'ter. Section 5. Severabilitv. Invalidation or unenforceability of an� one of these covenants or restrictions or any part, clause or word hereof, or the applieatiora ther�of in sp�cific circumstances, by judgment or court order shall not affect any other provzszons or appl�catiozls in other circumstances, all of which shall xemain in full force and effect. Section 6. Amendment Procedures. �1 resolutaon adoptiz�g an az to this Declaration inay be proposed by either the Board of Directors of the Mastez Associatioi� actiz�g upon a vot� of the majority of t��e directors, oz' by a majority of the �loting Representatives of the Master Association, whether meetzng as Members or by instrument xn �vvriting sign�d by t1�e�. Upon any aznendment or amendments to the Declaration being proposed by tl�e I3oard of Directors or Voting Representatives, such proposed amendment ox amendments shall be transmitted to the President of tlie Master Association or other c�fficer of the l�aster Association iza the abse�lce of the president, who, shall thereupon call a meeting c�f the Ivlez��bers of tiae Master Association and it shall be the duty of the Secretary to give each �Joting Representatzve written. or printed notice of such special meetiz�g, stating the time and place t1�er�of a�zd r�citir�g the proposed amendmez�t or amendments in reasonably detailed form, �hich nc�ti�e shall be mailed iz1 not less than fourteen (14) days before the date set for sucl� s�ecial rr�eeting. Sucl� notice s11a11 also be posted in a conspicuous place on the Common Areas not less thai� fc�urteen (14) days przor to the date set for such meeting. If mailed, such notzce shall b� deem�d to be pi•operly give�� when deposited in the LTnited States Mail, addresse� t� ��ch Voting Representative at his post c�ffice address as it appears on the records of the IO/Iastei° A.ssocza2ron, tl�e postage thereon being prepazd. Any Voting Representative may, by vvri�ten waivez• of sucl� notice signed by such Voting Representative, waive such notice, and si�ch v�azver, vvhet� filed an the records of the 1Vlaster Association, wk�ether signed and/or filed before or after the laoldiiag of tlle meeting shall be deemed equivalent to the giving of such noti�e t� such �oting Representative. At such meeting, the amendrt�ent or amendments proposed znay be apprc�ved b� an at#irmative vote of two-tl�irds (2/3) of the Votiiag Representataves for such am�ndm�ilt or amendments to becorne effective, Thereupon, SLiCll atnendment or ara�endments to tl�e Declaratioz� sl�all be transcribed and certified by the President and Secretary of' tkze l�as�er Association as liaving been duly adopted and the original or executed copy of su�h amendment or amendmerns so certified and executed with the same formalities as a deed shall be recoz•dec� in the Public Records of the County within thirty (30) days from t1�e date o� w��sich the saine became effective, such a�x�endment or amendments to speeifically refer to the ;•ecording data � 47 ' PMB_PMB_293732 1/MAMOORE identifying the Declaration. Thereafter, a copy of said amendment or amerzdm�nts ii�z the foz�rr� of which the same were placed o:F xecord by the Of�cers of the Master Associatio�a shall be delzvered or inailed to all Voting Representatives, but delivery of a copy �her�of sliail not be a conditzon precedent to the effectiveness of such amendment or amendments, In addition to the manner provided here�nabove for the amez�dmen� of this I�eclaration, the covenants, restrictions, easements, charges and liens of this Declaration may be amended, changed or added to at any time and from time to time (including, �vitl�aout lir,nitation izz order to meet any requirements, standards or guide�ines of FNMA, F'MHLC or FHA as to ail or any �ortio�� of the Property) upon the execution and recordation of ara instxument execut�d by tlze Declarant alone for so long as it holds title to any Lot or Unit affected by this I)eclai•ation and further provided that so long as the Declarant is the Owiler �f aizy IJnit affect�d by t17is Declaration, the Declarant's consent must be obtained if such amendinent, zn tlle sole j�zdgn�ent of the Declarant, affects its interest. Any amendment to this Declaration which materially adversely affects the surface water management system and/or any wetlar�c� preservation and/or mitigation areas in #lae Comrr►�nity shali ,�equire the written consent of the South F/orida Water Management District, which consent shall not be unreasonably withheld or de/ayec�oSF�IVMD Approval. N otwithstandzng anything to the contrary in t11is Sectio�, any amendrtient proposed to this Declaration, tlae Articles of Incorporatiozz and/or Bylaws wl�ich would af.fect the Sui•face Water Management Systerza, including environmentai consexvation areas, if a�y, shall be subn�itted to the SFWMD for review prior to fznalization of the amendment. The SFVJIVIT� s13a11 determine if the proposed amendment will requzre a modification of the envirortzxzei�tal resource or surface water management permit and if a modification zs necessary, the �zstrict sllall advise tlie Association. If a permit modification is necessary, the modification rnust be approved by the SFWMD prior to the amendznent of thzs I�eclaration, the Articles of Incorporation and/or the Bylaws. Notwithstanding anything to the contrary herernabove set forlh, the I3�c�ara�lt alolle may execute and record a� amendment to this Declaration to correct scrivenex's errors, and no amendment of this Declaration shall abridge, modify, eliminate, prejud�ce, lirrzit, ainerzd ��• alter the rzghts of the Declarant as set forth in the Declaration without tlle prior �vritten consegit of tJh� Declarant which inay be withheld in the sole discretion of the Declarant. Section 7. Conflzct. This Declaration shall talce precedenee over �onflictizag provisions in the Articles and Bylaws of the Master Associatioz� and the Articles s�Zall take pz•ecedence over the �ylaws. Section 8. Effective Date. This Declaration shall becom� effective �pon its recordation iri the Public Records oI'the County. - 4 '� - PMB_PMB_293712_1/MnMOORF, Sectior� 9. Ca�tions. The captions used in this Declaratiort and exl�ibits attached hereto, amendments thereof and supple�ents thereto are inserted solely as a rraatter of coilvenie�ce and shall not be relied upon or used �n construing the te�t of this I�eclaration or any exhibits hereto or amendments thereof and suppleznents thereto. Section 10. Star�dards for Consent. Abt�roval Completion and C)th�r Act�on. Whenever tilis Deciaration shall require the consent, substantial completzon, or oth�:r action by the Declarant, the 1Vlaster Association or the ARB, such consent, appro�al or actio�� may be witl�held in the sole and unfettered discret�on of the party rec�uested to giv� sucla consent or approval or talce such action, and all matters rec�uired to be completed or substantially �ompl�ted by the Declarant, the Master Association or the ARB shall be deemed so completed or substantially compieted when such matters have beezl completed or subst�ntially coznplcted in the reasonable opinion of the Declarant, the Master Association or AIZI3, as approprzate. Tor so long as Declarant owns o�e Parcel, IJnit or other real property �n tk�e Property or the Comnlunity, no Declaration of any Sub-Association or association othe�• tt�an the I�aster Associatfon may be recorded in the Public IZecords o:� PaIm Beach Couzaty, Florida witlaout th� written consent and joinder of tl�e Declarant hereunder. Section 11. Easements. Should the intended creation of any easen�ent provid�d for i�� this Declaratzo� Pail by reason of the fact that at the time of creation thexe inay he n� grantee in being having tlle capacity to take and hold such easement, then any such grant or easea�neiit deezl�ed not to be so created shall nevertheless be considered as having been granted dzrectly tc� the Master �lssoczation as agent for such zntended grantees for the purpose of allo�ving the original party or parties to whom the easerx�ents were originally to have been granted the b�ne�t of such easement a��d the Owners hereby desigr�ate the Declarant and the 1i�aster �.ssociation (or eitl�.er of them) as their law�ul attorney-in-fact to execute any znstruznent on such Own�rs t�ehalf as nlay hereafter be required or deemed necessary for the putpose of Iater creating such �asemei�t as it was intended to have been created herein. �'ormal language of grant or r�servation with respect to such easeinents, as appropriate, is hereby incorporated in the eas�rraei�t provASions llereof to the extent not so recited in some or all of the such provzsions. Sectioxz 12. Plats. In addition to this Declaration, the Property shall be subject to tiac additianal covenants, restrictions, reservatians and other terrns and provisions s�t forth in the plats of poz of the Property whicl� ar� recorded or to be recorded ��1 the �'ublze IZecords of the County. Section 13. Notices and Disclaimers as to Comznunit� stems. �3eclarant, the Master Association, any Sub-Association, or their successors, assigns oz° francha.sees and aaly applzcable cable telecommunications system operator (an "Operator") rna�, but are y7ot obligated to, enter into contracts for the provision of alarm ox moiaitoring sexvices thro�gh aray Comanunity Systems. DECLARANT, THE IvIASTER ASSOCIATION, ALL SUB-A�SOCII�T�ONS �NT� THL;IR FRANCHISEES, .AND AIVX OPERATOR, DO NOT (�U�RANTE�' �� �IA,RIZ�,IV�', F.,XPRESSLY OR IMPLIEDLY, T�-�E MERCHt�NTABILITY OI-� FI11�T�:�S �'OR IJSE Ok' ANY SUCJH COMMUNITY SYSTEM OR SF,RVICES, OR THI�T AI�i�1 �YST�1� (�1� - Q ' 9 ° PMB_PM[3_293712_7/M�MOORL SERVIC�S WILL PREVEIVT II�1TiZUSIOIVS, FIRES OR OTHER OCCURREI�ICES, OIZ THI� CONSEQUENCES O�' SUCH OCCURRENCES, IZEG�.RDLESS OF �IJ�ETHE� OI� �IOT THE SYSTEM OR SERVICES ARE DESIGNA,TED TO MOI�iITOR SAI�E; ANI) EVEI{Y OWNEIZ OR OCCUPANT OF PROPERTY SEIZVICEI� �Y THE CO�MUNIT4' S�I�`�'�MS �1.CKNOWLEDGES THAT DECLAIZANT, TI�E MASTEI� ASSOCI�4TIC)N, T�3E APPLICABLE SUB-ASSOCIA.TION OIZ ANY SLJCCESSOR, ASSIGl�1 �� FRAI�IC�-I�SE� OF THE l7ECLAIZANT, OR ANY OF THE OTI-£ER AFORESAID EI�TI�'I�S AND I�I�IY OPERA.TOR, ARE NOT INSUIZERS OF TI�E OWNER'S OR OCCUPAI�IT'S PRC)PERTY OIZ OF THE PROPER�'Y OF (�THERS LOC�ITED ON THE PREMISES A1�tD WILL NO"I� BE RESPONSIBLE OlZ LIABLE FOR L,OSSES, INJURIES OR I�EATHS R�SULTIN� PROM SUCH OCCUIZIZENCES, It xs extremely difficult and impractical to determi��ze tlze acTual damages, if any, which i�nay proxiinately result from failure on the part of an al�rrri or inonitorin� seavice provider to perform any of its obligations with respect tc� s�ch serv�c�s azad, tl�erefore, every Owner or occupant of property receiving securzly servaces thrc�ugli th�; Commuzlity Systems agrees that Declarant, the ]Vlaster Associataon, �11 5ub-Associatio�s or ai�y successor, assign or #ranchisee thereof and any Operator assume no liabiiity for �oss or da��xag� to pz•operty or for personal znjury or death to persons due tc� any reason, in�luding without liinitatioz�z, failure in transmission of an alarm, interruption of other s�rvice or failure tc� �espond to an alaarzn because of (a) aaay failure of the Owner's system; (b) any defectiv� or damaged ec�uipment UIJV�CE+ Iine or circuit; (c) negligence, active or otherwise, of the servzce provider or its officers, agents or employees; or (d� fire, flood, riot, war, act of terrorisi�, act of God or otl�er similar causes which are beyond the control of the service provider, Every Owner or occupant of property obtainzng security services through the Cc�az�munity Systems �urther agrees �or himself, his grantees, tenants, guests, inv�te�s, lice�lsees, and fan�ily nrzembers tl�at if any loss, damage, izajury or death should result from a fazl�re of �crformance or operation, or from defectiv� performance or operation , or From improper zzlstallatior�, mo�aitoring or servicing of the system, or froin a�egligence, active or otherw�se of �IZe security s�rvice provider or its officers, agents, or employees, the liabilzty, if any, of I�eclarant, th� 1`vlast�r Associatioi�, alI Sub-�,ssociations, any franchisee of the foregoing a�zd th� Operator or thesr successors or assigns, for loss, damage, injury or death sustained shall be Izm�tec� to a suaxb not exceedizag Two Hundred Fifty and No/100 U.S. Dollars ($250.00), whicll lira�itatio�l shal] apply irrespective of the cause or origzn of the loss or darx�age and notw�thstandzng �hat tl�e loss or dazx�age resu�ts directly or indirectly from negligent performance, active or othervaise, or non- performance by an officer, agent or erriployee e�f I�eclarant, the iViaster Ass�ciatzc�n, a�ly �ub- Association or any franchisee, successor or assign of any of same or any �perator. 4�urt���r, in i�o event will Declarant, the Master Associatzon, any Sub-Association, any Operato�° o� a��y of their fi•ancl�isees, successors or assigns, be izable for consec�uential damages, varongful death, persc�nal iz�jury or commercial loss. In recognit�on of the fact that interruptions in cable television and �ther �or�rn�jlity Systems services will occur froin time to tAZne, no person or entzty describeci above shall z�� any ina��ner be lzable, and no user of any Coznmunity System shall be entitled ta refund, rebate, discaunt or offset in applicable fees, for a�ay interruptioi� in Commun4ty Sy�tems serv3ccs, ° 50 ' Pi�iP,_pM13_29371?_7/MAMOOR� rega�dless of whether or. not same is caused by reasons within the control of the tl�ez� provider(s) of such services. �ection 14. Covenants Runnin�With The Land, ANYT'�IING TO THF COI�t 1 k�RY HEREIN NOTWITHSTANDING AND `JJITHOUT LIIVIITING T�-IE �EleT��,�,ITY (�.NI) SUBJECT TO THE LIM�TA.TIONS) OF OTHER APPLICABL,E SECTI�NS � IT I� THE INTENTION OF ALL PARTIES AFFECTED HEREBY (ANIJ THEIIZ RESPEC'�IV� HEIRS, PERSONAL REPRESENTATIVES, SIJCCESSOIZS ANI� ASSIGNS) TI-�AT TI-�ESE COVENAIVTS AND RESTRICTIONS SH�4I,L IZUN WITH THE LAND AND WIT�-� TITI,F TO THE PROPEIZTY. �VITHOUT LIMITING THE CpENER.ALI�T�' OF ANY OTH�� SECTION HEREOF, IF ANY PROVISIOIei OR APPLICATION JF THIS I.�ECI,,A.I�.TI�N WOULD PRF,VENT THIS DECLARATION F120M RIJNI�TIN(; WI1 1 HE LANI) �,.5 AFORrSAID, SUCH PROVISION AND/OR APPLICATIO�T S1�ALL �E JUDICIA.LI,Y MODIFIED, IF AT ALL POSSIBLE, TO COME AS CLOSE AS POSSI�I,E TO �'I-IE INT'EI�1�' OF SUCH PROVISION OR APPLICATION AND THEIoi BE ENFOIZCF_,I� I1ad A Io�AIVI�IER VVHICH WILL ALLOW THESE COVEN�NTS AND IZESTRICTIONS TO SO RUi�i �VITH TH� LAND; BUT IF SUCH PROVISION AND/OR APPLICATIOIV CAN1�10T B� SO MODIFIED, SUCH PRO�IISION ANL�(OI� APPLICATION SI�ALL �E LTNENk'OIZC�;A,BI.E _ AND CONSID�REI� NULL ANT� VOID IN ORDER THAT TI�E PA�Al�OUN`Z' G�AL �F THE PARTIFS AFI'ECTED H�REBY (TI-�AT �'HESE CO`IENANTS A�1I3 �;STRIC�'�ONS RUN WIT�-I THE LAND AS AFORESAII)) �3E AC�IIEVED. Section 15. Limitation on Master Association. Az�ything in this I�eclaration to tl�e contraxy notwitk�standing, the existence or exercise of arzy eas�ment, right, power, autl�ority privilege or duty of the Master Association as same pertains to any co�dominiuz�. located or which z��ay be within the Property which would cause the Association to be subj��t to C1�apt�r 718, Floxida Statutes, shall be null, void and of no effect to the extent, but oniy to the exten�, tl�at suc11 existence or exercise is finally determined to subject t11e Master �issociatior� to said Chaptex 718. It is the i�tent of this provision that the Master Associatzon not b� deezned to be a condozninium association, nor the Common Areas be deemed to be commoxa elemezats of any such condominium, within the meaning of appiicable laws or adrrr�inistrative r�1es #'or any purpc�se. Section 16. Notices and I�isclaimers As To Water �odies. 1�EIT�-IER I�ECLA�Z�hNT, THE MASTER ASSOCIA�'ION, ANY SUB-�SSOC�f1TION(S) NQ� AT�1y C�F T�EIIZ OF�ICERS, DIRECTORS, COMMITTEE MEMBERS, EIvIPLOYEES, ViA�IAG�]VI1;I�T AGENTS, CONTRACTOIZS OR SUB-CONTIZACTOIZS (COLLECTI�IELY, �'HE 66 LIS7"FI� PAiZT�ES") SHALL BE LIABLE OR IZESPONSIBLE FOR MAINTAiN1NG O�Z AS�U�I1�G TH� WAT'ER QUALITY OR LEVEL ANY I,A.KE, POND, C�iNAL, CR�FK, S�'RF�,IV� OR OTI��R 1rVATER BODY WITHIN OR ADJACENT TO THE COlVI1VIUNITI', EXCEi �' (a) 14,5 SUCH R�SPONSIBILITY MAY BE SPECIFICAI,LY IMPOSED BY, OR CON T�ZAC �'�� WITH, AN APPLICABLE GOVERNMENTAL OR QUASI-GOVEIZNMEI`dTAL AC�E�iC�' OR AIITI�ORITY OR (ii) TO THE EXTElVT THAT OT'HEIZ EXPRES�LZ' APF'LICABI,L SECTIQNS HEREOF WOULTJ OTHERWISE APPLY, IF AT A�.i,. �URT�IE�Z, �4,I,L, OWNERS AND USERS OF ANY ]PO}ZTION OF THE COMIVIUi�TIT�' LC)CA�LI� - 5 � " PNiB_PMB_293712 I/Mn�/ipORE ADJACENT TO OR HAVING A VTEW OF AN� OF THE AFOIZESAID elVA'TE�Z BODIES SHALL BE DEEMED, BY VIRTUE OF THEIR ACCJEPTANCE OF TI-�E DEE� TO O�Z LJSF OF, SUCH PROPERTY, TO HAVE ACyREED TlJ �IOLI) IIARMLES� T�-IE I,�S�'EI3 PARTIES FOR ANY AIVD ALL CHANGES IIV THE QUALITIr AI�i� LE�T�;�, flF �'I-�E WATER IN SUCH BODIES. ALL P�RSONS ARE HEREBY NOTIFIED THAT, �ROI°✓I TIIVIE TO `I'Il��:, ALLIGATO�S AND OTHER WILDL,IFE MAY 1NHA�IT OR �1�1TER INTO VUAT�R BODIES AND MAY POSE A THREAT TO PERSONS, PETS A1�tI� PIZOPERT Y, �UT �'1�A"1' TH� LISTED PARTIES ARE i1NDF,R NO L)UTY TO PIZOTECT �1CiA�1�1ST, A7�1D D� 1�OI' IN ANY MANNER WARRANT AGAINST, AI�TY DEATH, INJ�JR�' OIZ I��1MA�� CnI��Ei� BY SUCH WILDLIFE. Section 17, Certain Reserved Ri�hts of I�eclaratit i IZespect Tc� Cor�ar,nux�itX S stems. Without limitzng the generality of any other applicable provpsio�zs o� this Deciaration, and witl�out such provisions lirniting the generality hereof, I�eclarant hereby zeserves anc� z�etains to itself: A. the title to any Comm�nity Systems and a pexpetual �as�zra�z�t fo�• flae placeznent, location and maintenance thereof; �. the right to connect, from time to time, the Coanmuni�y Syst�rrzs to �ucl� receiving and telecommuting or intermediary transmassion sou�ce(s} as D�clarant t�ay an its sole discretion deem appropriate including, vaithout lirz�.itatian, companies licensed 2o p�ovid� CA,�'V and teleco�nmuting service in the County, for which service Declarant shail have th� right to charge any users a reasonable fee (�vhich shall not exceed ai�y rr�axii�uzn allovvable cl�arge provided for in the Code of Laws and Ordinances of the County; and C. the right to offer from tir�e ta time alarm and znonitoring servic�s ihroug�� the Community Systezns. Section 18. Use of Propert IeTame. All parties o�vning ox otherwis� ma��zilg any use of at�y portioi� of the Property sha11 be deezned, by virtue of accepting such ownershi� �r zr�al<zng such use, to have covenanted and agreed that (i) "The Preserve at Tequesta" is, c�r �vill beconae, a registered trade�ark of the Declarant, (ii) except as provided below, n� usag� of that rnarlc or zlame or any variation thereof will be made in naming or referring to any busir�ess or act�vity witllin oz• outside of the Property or in describing or referrgng to the location of any business or ez�terprise cozlducted within or outside of the Property an.d (iii) generally, no usage o� tl�zat 1 ox• name wzll be made wlhatsoever without the express prior written approv�l o# the I)eclaxan�. Section 19. Deliverv of Documents to Subsec�uent Owners. Owners shall bc obligated to deliver the documents originally received from the Declarant, containi�� tl�is and othex declazatioz�s and docuznents, to any grantee oi• lessee c�f such Owners. - 52 " PMB_PMF3_293712_l/MAMOORr Sectior� 20. Joinder by �'HE PRESER�TE AT TEQUESTA MAIN TLIVANCE ASSOCIATIOI�1, INC. This Declaration is be�ng executed by Prop�rty Ow��ers Association, Inc. to acknowledge its joinder in this Dec�aration for the p�Ypose of agre�in�; tQ perforin its obligations as colltained her�ine Section 21. Goven�in�w. The terms, covenants and �ondztions of tl�is I�eclaratioi� shall be construed, governed by and enforced in accordance with tlae laws of th� State of N lorida. Sectzon 22. Gender and Pluralitv. Wllenever the context so requires, th� �se of t17e masculir�e gender, the use of the singular to include the plural, and the use of th� plura� �o i��clude the singular. Section 23. Owner Acceptance and lZatification. By acquis�tion of title t�s r�al propez�ty subject to this Declarat�on, eacli Owner thereby irrevocably ratifies, approves and affirms ail provisions of the Declaration and actions of the Board wi�h respe�t tc� tll� �Z�ethod of determination and collection of assessrtlents and assessment rates for th� year cluriz�g �vl�ich such Owner acquired title to his respective Lot, Unzt, or other i•�al propertyo Iz1 witness whereof, I�eclarant has caused the foregoi�g TJeclaratio� of Covenants, Restrictions and Easements to be executed by its undersigned duly authorzzed c��fc�i•s �z� tl�e date set fortli above. Witnesses: COI�N�RSTOI�IE TEQ�tJES�'l-1, �,.�.C., a Sign Narne Florida iir�aited lzabzlity co,npany Print Name �y: Sign Name I�ame: Title: Prznt Name sTaTE oF r�,or�ID�. � > SS: COUNTY OF � Thzs foxegoing instrument was acknowledged before tk�is day of 200_, by , as of' CORNERS"�'ONE TEQUESTA, L.L.C., a Florida limited liability company, on behalf of said limited Iiabi�ity coinpany, who � is personally known �o me or __ who produced as zdentification. � S3 - PMB_PMB_293712 1/NtAMOORi Notary Public State of Florid� My comn�issior� expires: [NOTARY SEALJ ° 54 ' PMf3_PMB_293712_i/M/aMOORI: Joinder by THE PRESFRVE AT TEQUESTA 1VIA.INTEI�I�NCF ASSOCI�1'TI�N, �NCe, pursuant to Article , Sectiozl hereof: WIT1i�ESSESo Signed, sealed and delivered in the presence THE PRESEIZVE A.�I' �EQUEST� °�� MAINTENANCE A.SSOCIA.TIOI+�, INC., a Florida not-for-profit corporat�oz�z By: Nazx�e: IVazx�e: Title: PI�ESIDENT Name: STATE OF FLORIDA ) ) ss: COUNTY OF PALM BEACI� ) This faregoing ��strument was acknowledged before this day of 200�, bY , as o� T�IE PRES�,�Z�� AT TEQUESTA M�4INT�NANCE ASSOCIA,�'IO�T, IIVC., a Florida coxporatioa�, on bellalf of saAd corporation, who _ is personally known to me or ____ vul7o pr�duc�.d as identification. 1Votary I'ublic, State of r lorida IVIy coinrr�ission expires: [NOTARY SEAL] - � - PMi3_PMB_293'712_1/MAMOORF, Prepared By: Marilyn A. Moore, Esq. Foley & Lardner LLP Phillips Point 777 South Flagler Drive, Suite 901-W West Pahn Beach, Florida 33401 Return To: Conierstone Teguesta, L.L.C. 2121 Ponce De Leon Blvd. Coral Gables, Florida 33134 Attn: Leon J. Wolfe DECLARATION OF CONDOMINIUM FOR THE PRESERVE AT TEQUESTA TOWNHOMES 1, A CONDOMINIUM PMB PMB 293704_1/MAMOORE 007.1 G3511.2 TABLE OF CONTENTS Pa�e ARTICLE 1 DEFINITIONS ............................................................................ ............................ ARTICLE 2 DESCRIPTION OF THE CONDOMINIUM PROPERTY ......................... ...... 5 General Description of the Condominium Property ......................................... 5 Section 2,1 ...... 5 Section 2.2 Survey and Graphic Description of the Condominium Property ................ Section 2.3 Time Share Estates .................................................................. .......................... 5 ARTICLE 3 DEFINITION OF UNITS, COMMON ELEMENTS AND LIMITED COMMON ELEMENTS ................................. ............................................... 6 Section 3.1 Units ............................................ 6 ..................................................................... Section 3.2 Common Elements """"""""""""�" � . ....... ........................................................ Limited Common Elements ••••�•••••••••••••••••••"""""""""""° g Section 3.3 ............................... ARTICLE 4 APPURTENANCES TO UNITS/EASEMENTS ................................................. S Section 4.1 Undivided Share in the Common Elements and Common Surplus .................: 9 Section 4.2 Limited Common Elements. ••••••••••••••�••••••••�••••••••"""""""" 9 Section Air Space .......................................................................................................... Section 4.4 Non-exclusive Use of Common Elements ........................................................ 9 Section 4.5 Encroachment ................................................................................................. 10 Section 4.6 Right to Association Membership .................................................................. Section Support ............................................................................................................ 10 Section 4.8 Utility and Other Services; Drainage .............................................................. 10 Section 4.9 Cable TV and Communication Devices ......................................................... 10 Section 4.10 Special Telephone Services ............................................................................ 11 Section 4.11 Perpetual Easement ......................................................................................... 12 ARTICLE 5 MULTI-CONDOMINIUM ASSOCIATION ..................................................... Section 5.1 Functions and Duties ....................................................................................... 12 Section 5.2 Membership •••••••••••••••••••""" 12 ........................................................................... Section Voting Rights .................................................................................................. 12 Section 5.4 Association Management ................................................................................ 13 Section Right of Access ............................................................................................... 13 Section 5.6 Board of Directors ........................................................................................... 13 ARTICLE 6 MAINTENANCE, REPAIRS AND REPLACEMENTS ..................................14 Section6.1 Units ................................................................:............................................... 14 Section 6.2 Common Elements .......................................................................................... 14 Section 6.3 Limited Common Elements ............................................................................ 14 i WPB_163511.3 March 3, 2006 Section 6.4 Maintenance and Repair Necessitated by Negligence of Unit Owners ..••••:::: 15 Section 6.5 Association Right to Perform Remedial Maintenance ................................ ARTICLE 7 INSURANCE .................................................. ....................................................... Section 7.1 Duty and Authority to Obtain . ........................................................................ 15 Section 7.2 Required Coverage .......................................................................................... 15 Optional Coverage """""" 1 � Section 7.3 .......................................................................................... 17 Section7.4 Premiums ........................................................................................... Section7.5 Assured ........................................................................................................... 17 Section 7.6 Insurer "'������������� 17 ............................................................................................. Insurance Trustee. """""""""""" 1 � Section 7.7 ................................................................... Section 7.8 Association as Insurance Trustee .................................................................... 18 Application of Insurance Proceeds •"""""' 1 g Section 7.9 ..................................................... ARTICLE 8 RECONSTRUCTION OR REPAIR AFTER CASUALTY ............................. 21 Damage to Units ............ 21 Section 8.1 ................................................................................. Certificate ........................................................................................................ 21 Section 8.2 21 Section 8.3 Plans and Specifications ..................................................................... 22 Section 8.4 Responsibility .......................................................... ................................... 22 Section 8.5 Construction Funds �•••••"""""""""' ............................................................... ARTICLE CONDEMNATION .............................................................................................. 24 Section 9.1 Deposit of Awards with Insurance Trustee ..................................................... 24 Section 9.2 Determination Whether to Continue Condominium ....................................... 24 Section 9.3 Disbursement of Funds ••••••••••••••••••••••••••••••••••••••••••�•••••••�•"' 24 ............................ Section 9.4 Unit Reduced but Tenantable .....................:.................................................... 24 Section 9.5 Unit Made Untenantable ................................................................................. 24 Section 9.6 Taking of Common Elements ......................................................................... 25 Section 9.7 Taking of Association Property . ..................................................................... 26 Section 9.8 Amendment of Declaration ............................................................................. 26 ARTICLE 10 OWNERSHIP AND USE RESTRICTIONS .................................................... 26 Section Units ................................................................................................................ 26 Section10.2 Entity Ownership . ........................................................................................... 26 Section 10.3 Association Property and Common Elements . ............................................... 27 Section Nuisances . ....................................................................................................... 27 Section 10.5 Sales and Leasing ............................................................................................ 27 Section 10.6 Sound Transmission ........................................................................................ 28 Section10.7 Parking . ........................................................................................................... 30 Section Pets and Animals ............................................................................................. SeCtioII 10.9 Extended Vacation and Absences ................................................................... 31 Section 10.10 Dampness and Humidity Mitigation ............................................................... 31 Section 10.11 Antennas, Satellite Dishes .............................................................................. 32 Section10.12 Flag Display .................................................................................................... 32 ii WPB_163511.3 March 3, 2006 Section 10.13 Signs ................................. ........................................ ....................:.................. 32 Section 10.14 ... ........................................................ 32 Rules and Regulations .......................... ............................. 32 Proviso ....................................... Section 10.15 ........................................ ARTICLE 11 COMPLIANCE AND DEFAULT ....................................... .............................. 33 Section 11.1 Remedies .................� ..................................... .................................................. 33 Section 11.2 Costs and Attorneys Fees .............................................................................. 33 Section 11.3 No Waiver of Rights •••••••�••••••••••••�• ........................................ 33 ARTICLE 12 ASSESSMENTS: LIABILITY, LIEN AND ENFORCEMENT ................. ,. 33 Section 12.1 Determination of Assessments ........................................................................ 34 Time for Pa ment ............................................................ 34 Section 12.2 y ............................... Annual Bud et ............................................................ 34 Section 12.3 g .................................... Section 12.4 Special Assessments ...................................................................... 35 ................. .......... ..................... 35 Section 12.5 Reserve Funds ..................................... ............................. Contin enc Funds .. ................................ 36 Section 12.6 g Y ....................................................... Use of Association Funds ................................ 36 Section12.7 ............................................... Delin uenc or Default ................................................................................... 36 Section 12.8 �1 Y , ............................... 37 Section 12.9 Personal Liability of Unit Owner ..................................... ............................... 37 Section 12.10 Liability Not Subject to Waiver ....................................... 37 Section 12.11 Lien for Assessment ................................................................... 37 Section 12.12 Recording and Priority of Lien ....................................................................... ................................... 3 8 Section 12.13 Effect of Foreclosure or Judicial Sale .......................... 38 Section 12.14 Fees for Sub-Metering of Utilities . ............................................................... 38 Section 12.15 Effect of Voluntary Trans er ........................ ................................................... 39 Section 12.16 No Election of Remedies .....................................................................••�••••"" 39 Section 12.17 Additional Assessments .................................................................................. ARTICLE 13 REGISTRY OF OWNERS AND INSTITUTIONAL MORTGAGEES ....... 39 Section 13.1 Registry ............................................................. 39 :............................................. Section 13.2 Notices to Lenders ................................................... 39 ....................................... ARTICLE 14 ALTERATIONS AND IMPROVEMENTS ..................................................... 40 Section 14.1 Architectural Control ...................................................................................... 40 Section 14.2 Alterations by Unit Owners other than Developer ......................................... 41 Section 14.3 Requests for Approval .................................................................................... 42 Section 14.4 Ownership of Contiguous Units ...................................................................... 42 Section 14.5 Alterations by the Association ................................ p ..................................... 43 Section 14.6 Additions, Alterations or Improvements by Develo er .................................. 43 Section 14.7 Compliance with Laws and Regulations; Warranties ..................................... 44 ARTICLE 15 TERMINATION AND MERGER .................................................................... 44 Section15.1 Destruction ...................................................................................................... 44 iii WPB_163511.3 March 3, 2006 Section 15.2 Agreement ................................................................. ...................................... 45 Certificate .................. .................................................................. 45 Section 15.3 ••••�•••"""""" ....................... 45 Section 15.4 Shares of Owners After Termination ....................................... Section 15.5 Amendment ................................................................................... .................. 46 Section 15.6 Merger ....................................................................... ...................................... 46 ARTICLE 16 AMENDMENT ............................................................................ ....................... 46 Amendment b the Association . ..................................................................... 46 Section 16.1 Y ,,.,,.., 4� Section 16.2 Amendment by Developer to Correct Errors or Omissions .................... Section 16.3 Effective Date and Recording Evidence of Amendment ................................ 47 Section 16.4 Exceptions ............................................................................................... ........ 47 Developer and Declarant Consent ••••••�••••••••••••••••••••••••••••••�""""' 48 Section 16.5 """""""""' Section 16.6 SFWMD Approval .......................................................................................... 48 ARTICLE 17 ADDITIONAL RIGHTS OF DEVELOPER ........................... ........................ 48 Section 17.1 Sales Activit ....................:.......................................... 48 y ................................... Control of Association ............. ........ 49 Section 17.2 ............................................................... Additional Easements ................ 49 Section 17.3 ..................................................................... Section 17.4 Construction Maintenance . .............................. ............................................... 50 ARTICLE 18 ASSOCIATION PROPERTY ........................................................................... 50 Association Pro ert .......................................................... 50 Section 18.1 P y ............................. ARTICLE 19 THE PRESERVE AT TEQUESTA MAINTENANCE ASSOCIATION, INC. ......................................................................................................................... 50 Section 19.1 The Preserve at Tequesta Maintenance Association, Inc. Disclosure ........:::: 50 Section 19.2 Supremacy of Master Declaration .............................................................. ARTTCLE 20 SUB-ASSOCIATIONS ....................................................................................... 51 Section 20.1 Cumulative Effect; Conflict ............................................................................ 51 Section 20.2 Use Restrictions ................. 51 ............................................................................. Section 20.3 Delegation of Other Duties ............................................................................. 51 Section 20.4 Acceptance of Delegated Duties ..................................................................... 51 Section 20.5 Master Association Offices ............................................................................. 52 Section 20.6 Master Association Activities ......................................................................... 52 ARTICLE 21 MISCELLANEOUS ........................................................................................... 52 Section 21.1 Notices and Disclaimers as to Access Control Systems ................................. 52 Section 21.2 Notices and Disclaimers As To Security ........................................................ 54 Section 21.3 Notice and Disclaimer as to Water Bodies ....................................................• 55 Section 21.4 Assumption of Risk ......................................................................................... 56 Section 21.5 Notices and Disclaimers as to Unit Square Footage ....................................... 57 iv WPB_163511.3 March 3, 2006 Section 21.6 Notice and Disclaimer as to Warranties .......................................................... 58 Section 21.7 Access of Developer to Buildings and Unit and to Reports ........................... 58 Section 21.8 Association Liability ....................................................................................... 59 Covenants Running With The Land ..................... 60 Section 21.9 .......................................... ............ 60 Section 21.10 Interpretation ......................... .............................................................. Section 21.11 Owner Acknowledgement of Association Authority ...................................... 60 Section 21.12 Severability ........... ...........................................:............................................ 61 Section 21.13 Applicability of Declaration of Condominium ............................................... 61 ............................................................................... 61 Section 21.14 Construction ..................... .. 61 Parties Bound ................... ....................................... Section 21.15 ...................................... Section21.16 Name ............ ................................................................................................. 61 .. ................. 61 Section 21.17 Delivery of Documents to Subsequent Owners ............................. Section 21.18 Joinder by The Preserve At Tequesta Townhomes Condominium Association, Inc. . ......................................... 61 ....................................................................... Section 21.19 Drainage Easements ........................................................................................ 61 Section 21.20 South Florida Water Management District ..................................................... 62 Section 21.21 Easements .............................................................. ......................................... 62 Section 21.22 Governing Law and Venue ................................................................. ............ 62 Section 21.23 Gender and Plurality .................................................................................... ... 62 Section 21.24 Owner Acceptance and Ratification ...................... ......................................... 62 v WPB 163511.3 March 3, 2006 Exhibits «A�� Legal Description of the Condominium Property "A-1" Legal Description of the Association Property «B�� Survey and Plot Plan of the Condominium Property ��C�� Graphic Description of the Condominium Property «D�� Undivided Interest in the Common Expenses, Common Elements and Common Surplus of the Condominium ��E�� Articles of Incorporation of The Preserve at Tequesta Townhomes Condominium Association, Inc. ��F�� Bylaws of The Preserve at Tequesta Townhomes Condominium Association, Inc. vi WPB_163511.3 March 3, 2006 DECLARATION OF CONDOMINIUM FOR THE PRESERVE AT TEQUESTA TOWNHOMES 1, A CONDOMINIUM CORNERSTONE TEQUESTA, L.L.C., a Florida limited liability company, its successors and assigns, hereby submits to the condominium form of use and ownership pursuant to Chapter 718, Florida Statutes, 2005, as amended to the date hereof, land situated in Palm Beach County, Florida, described as the Condominium Property on Exhibit "A" attached hereto and made a part hereof, together with all improvements now or hereafter situated or constructed thereon, and the easements, rights, privileges and obligations appurtenant and appertaining thereto, excluding any public utility installations located on or under the Condominium Property, to be known and described as THE PRESERVE AT TEQUESTA TOWNHOMES l, A CONDOMINIUM (the "Condominium"), on the following terms: . ARTICLE 1 DEFINITIONS The following terms as used in this Declaration of Condominium and the exhibits hereto shall have the following meanings, unless the context in which they are used requires a different meaning: Section 1.1 "Assessment" means a share of the funds required for the payment of Common Expenses which from time to time are assessed against a Unit and its appurtenant undivided interest in the Common Elements, the payment of which is secured by a lien upon the Unit and its appurtenant undivided interest in the Common Elements, and a share of the funds required for the payment of Association Common Expenses, which from time to time are assessed against each unit governed by the Association and such unit's appurtenant undivided interest in the common elements of its condominium, the payment of which is secured by a lien upon the applicable unit and its appurtenant undivided interest in the common elements of its condominium. Section 1.2 "Association" or "Condominium Association" means The Preserve at Tequesta Townhomes Condominium Association, Inc., a Florida not-for-profit corporation, the entity responsible for the operation and administration of the Condominium and other condominiums located or proposed to be located on land in close proximity to the Condominium Property within The Preserve At Tequesta Townhomes which is located in the Community (as both are hereinafter defined). Pursuant to the Master Declaration (as hereinafter defined), the Association is a"Sub-Association" and is subject to all terms, conditions, and provisions of the Master Declaration. As a Sub-Association, the Association has duties and obligations set forth in the Master Declaration, including, but not limited to, such duties and obligations as may be delegated to the Association by the Master Association (as hereinafter defined), pursuant to the Master Declaration. WPB_163511.3 Marcli 3, 2006 1 Section 1.3 "Association Common Expenses" means all expenses and assessments incurred by the Association not directly attributable to the operation of this Condominium and any other condominium whose Unit Owners are members of the Association, except to tl�e extent (if any) that the prrrpezti�� or common elements of any such specific condominium are areas in which all members of the Association have use rights or receive tangible benefits. Section 1.4 "Association Common Sumlus" means the excess of all receipts of the Association not attributable to this Condominium's Common Elements or the common elements of any other condominium whose unit owners are members of the Association, over the Association's Common Expenses. Section 1.5 "Association Propertv" means the property more particularly described on Exhibit "A-1" hereto, including without limitation, all roads located therein, together with sidewalks, landscaping, pool, deck and other related areas as more particularly depicted on Exhibits "B" and "C" hereto and which are owned by the Association for the use and benefit of the Unit Owners and their tenants, guests and invitees and the owners of all other units in condominiums governed by the Association and their respective tenants, guests and invitees. Section 1.6 "Board of Directors" or "Board" means the Board of Directors of the Association. Section 1.7 "Bvlaws" means the Bylaws of the Association, as amended from time to time. Section 1.8 "Common Elements" means all of the real property of the Condominium not included in the Units and such other property as may be designated in this Declaration as being attributable to this Condominium. Common elements are for the use and benefit of Unit Owners of this Condominium, their tenants, guests and invitees and are not for the use or benefit of other persons including without limitation unit owners, tenants, guests or invitees of other condominiums governed by the Association. Section 1.9 "Common Expenses" means all expenses and assessments incurred by the Association for the Condominium or as otherwise may be designated in this Declaration of Condominium, including without limitation, expenses for the operation, maintenance and replacement of the Surface Water Management System (as hereinafter defined). Section 1.10 "Common Surplus" means the excess of all receipts of the Association for this Condominium, including, but not limited to, assessments, rents, profits and revenues on account of the Common Elements, over the amount of Common Expenses. Section 1.11 "Communitv" means that certain real property also defined as Property in the Master Declaration and which is more particularly described therein, as same may be amended from time to time. 2 WPB_163511.3 March 3, 2006 Section 1.12 "Condominium Act" means the Condominium Act of the State of Florida (Chapter 718, Florida Statutes) as it exists on the date that this Declaration of Condominium is recorded in the Public Records af Palm Beach County, Florida. Section 1.13 "Condominium Building" or "Buildin " means that certain building constituting the principal improvements located on the land hereby submitted to the condominium form of ownership, and any other improvements located on land hereafter added to the Condominium. Section 1.14 "Condominium Documents" means this Declaration of Condominium and all of the exhibits hereto, as they may be amended from time to time. Section 1.15 "Condominium Parcel" means a Unit together with the undivided share of the Common Elements which is appurtenant to that Unit, unless otherwise defined elsewhere in this Declaration. Section 1.16 "Condominium Propertv" means the land described in Exhibit "A" submitted to the condominium form of ownership pursuant to this Declaration and all land hereafter added to the Condominium, all improvements now and hereafter constructed and situated on said land, including all Units and Common Elements, and all easements and rights appurtenant thereto, for use in connection with the Condominium. Section 1.17 "Construction Lender" means the bank, savings and loan association, insurance company, real estate or mortgage investment trust, pension fund, mortgage banker or any other lender providing the funds for the development and/or construction of the Condominium. Section 1.18 "Count " means Palm Beach County, Florida. Section 1.19 "Declarant" or "Master Declarant" means the Declarant as said term is defined in the Master Declaration, as same may be amended from time to time. Section 1.20 "Declarant's Affiliates" means those persons, corporations, partnerships, limited partnerships, limited liability companies, or other business entities in which the Declarant entity has an ownership or other proprietary interest or is expressly designated by Declarant as an affiliated entity relative to its use, operation, development of or other activities within the Community. Section 1.21 "Declaration" or "Declaration of Condominium" means this instrument, as it may be amended from time to time. Section 1.22 "Devel�er" means Cornerstone Tequesta, L.L.C., a Florida limited liability company, and any successor(s) or assign(s) thereof to which Developer specifically assigns all or part of the rights of Developer hereunder by an express written assignment, whether or not recorded in the Public Records. Such written assignment may give notice as to which rights of Developer are to be exercised and as to which portion(s) of the Condominium Property such rights apply. In the event of a partial assignment, the assignee shall not be deemed Developer, but may exercise such rights of Developer specifically assigned 3 WPB_163511.3 March 3, 2006 to it. In any event, any subsequent Developer shall not be liable for any default or obligations incurred by any prior Developer, except as may be expressly assumed by the subsequent Developer. An Owner shall not, solely by the purchase of a Unit in The Preserve at Tequesta Townhomes 1, be deemed a successor or assign of Developer under the Condominium Documents unless such Owner is specifically so designated as a successor or assign of such rights in the instrument of conveyance or any other instrument executed by Developer. Any assignment may be made on a non-exclusive basis. The transfer of control of the Association does not cause a termination of the rights of the Developer. Further, a lender may succeed to the rights of Developer without assuming the obligations of Developer. Section 1.23 "Developer's Affiliates" means those persons, corporations, partnerships, limited partnerships, limited liability companies, or other business entities in which the Developer entity has an ownership or other proprietary interest or is expressly designated by Developer as an affiliated entity relative to its use, operation, development of or other activities within the Condominium Property. Section 1.24 "Future Develo�ment Propertv" means the property adjacent to and in the vicinity of the Condominium and may include Association Property, all of which may be developed into additional condominiums or other residences by Developer or other entities and as more particularly described in that certain deed recorded in Official Records Book , Page of the Public Records of Palm Beach County, Florida. Section 1.25 "Institutional Mort�a�ee" means a bank, savings and loan association, insurance company, real estate or mortgage investment trust, pension fund, agency of the United States Government, mortgage banker, any other lender generally recognized as an institutional-type lender, or Developer, which holds a first mortgage on a Unit or Units. Section 1.26 "Life Safet�vstems" means any and all emergency lighting, audio and visual signals, safety systems, sprinklers and smoke detection systems, which are now or hereafter installed in the Building, whether or not within the Units. All such Life Safety Systems, together with all conduits, wiring, electrical connections any systems related thereto, regardless of where located, shall be deemed part of the Common Elements. Section 1.27 "Limited Common Elements" means those Common Elements which are reserved by this Declaration of Condominium, or assigned, granted or conveyed separately herefrom pursuant to the terms hereof, for the exclusive use of a certain Unit or Units to the exclusion of other Units. Section 1.28 "Master Association" means The Preserve at Tequesta Maintenance Association, Inc., its successors and assigns, being the entity responsible for the administration and performance of certain duties as set forth in the Master Declaration (as hereinafter defined) and in the articles and bylaws of the Master Association. Section 1.29 "Master Assessments" means all assessments levied by the Master AS50Clatiori aga111St Owners and Units for the purposes set forth and as defined in the Master Declaration (as hereinafter defined). 4 WPB_163511.3 March 3, 2006 Section 1.30 "Master Declaration" means the declaration of the Master Association more particularly described in Section 1.28 above, as the same may be amended from time to time. Section 1.31 "Special Assessments" means assessments for services which the Association is authorized or required to provide, to the extent that the Assessments are insufficient to fund such services. Such Special Assessments are more particularly described in Article 12 of this Declaration. Section 1.32 "Surface Water Management System" means and refers to those portions of the Condominium Property which the Master Association is required to maintain pursuant to the SFWMD Permit, as provided in, if any, Master Declaration, which may include, but not be limited to, lakes, retention areas, culverts and related appurtenances. Section 1.33 "SFWMD" means the South Florida Water Management District. Section 1.34 "SFWMD Permit" means SFWMD Permit No. , dated , 200_ Section 1.35 "Unit" means a part of the Condominium that is subject to exclusive ownership. Section 1.36 "Unit Owner" or "Owner" means the Owner of a Condominium Parcel (as defined in Section 1.11 hereo�. Section 1.37 "Utilitv" or "Utilities" means, all utilities, including but not limited to, telecommunication, gas, electricity, water and sewer, and garbage and trash disposal. ARTICLE 2 DESCRIPTION OF THE CONDOMINIUM PROPERTY Section 2.1 General Descri�tion of the Condominium Propertv. The Condominium Property is situated in the County of Palm Beach, Florida and is more particularly defined in Section 1.12 hereof. Condominium Units that are designated as Units in this Declaration are located in the Condominium Building, together with those certain related improvements, all as designated on the Graphic Description which is Exhibit "C" hereto. Section 2.2 Survev and Graphic Description of the Condominium Propertv. Exhibit "B" to this Declaration is a site plan (also described as plot plan) and survey of the Condominium Property. Exhibits "B" and "C", together with this Declaration, identify the Common Elements and each Unit in the Condominium and their relative size and location. Exhibits "B" and "C" have been certified in the manner required by F.S. 718.104(4)(e). Section 2.3 Time Share Estates. Time share estates will not be created or permitted within the Condominium. 5 WPB_163511.3 March 3, 2006 This Article 2 may not be amended without the written consent of the Developer until the date when the Developer no longer holds any Units for sale in the ordinary course of business. ARTICLE 3 DEFINITION OF UNITS. COMMON ELEMENTS AND LIMITED COMMON ELEMENTS Section 3.1 Units The Condominium contains a maximum total of six (6) Units which are located and described on the Survey and Plot Plan which is Exhibit "B" hereto. The boundaries of each Unit are as follows: (a) Upper and Lower Boundaries. The upper and lower boundaries of each Unit shall be the following boundaries extended to their planar intersections with the perimetrical boundaries: (i) U�per Boundaries. The horizontal plane of the lowest surface of the unfinished ceiling of the Unit (which will be deemed to be the ceiling of the upper story if the Unit is a multistory Unit). (ii) Lower Boundaries. The horizontal plane of the lowest surface of the unfinished floor of the Unit (which will be deemed to be the floor of the first story if the Unit is a multistory Unit). (b) Perimetrical Boundaries. The perimetrical boundaries of the Unit shall be the vertical planes of the undecorated finished interior of the exterior walls bounding the Unit extended to their planar intersections with each other and with the Upper and Lower Boundaries. It is intended by the provisions of this Section 3.1 that those areas designated as "garages," as depicted on Exhibit "C" hereto be included within the boundaries of the respective Unit which such garage is designated to be a part of or adjoins. Accordingly, the Unit boundary descriptions above are also applicable to such garages. (c) Boundaries — Further Defined. The boundaries of the Unit shall not include all of those spaces and improvements lying beneath the undecorated and/or unfinished inner surfaces of the perimeter walls and floors, and those surfaces above the undecorated and/or inner surfaces of the ceilings of each Unit and, further, shall not include those spaces and improvements lying beneath the undecorated and unfinished inner surfaces of all interior bearing walls and/or bearing partitions and, further, shall exclude all chases and columns and all pipes, ducts, wires, conduit and other facilities running through any interior wall or partition for utility services to other Units and/or for Common Elements. (d) Notices and Disclaimers as to Unit Square Foota�e. The square footage calculation of each Unit includes all columns, partitions, chases, pipes, conduits, building systems, limited common elements, interior walls, and wires included within the aforedescribed Unit boundaries, so that so such item is subtracted from the overall square 6 WPB 163511.3 March 3, 2006 footage of any Unit in measuring such Unit. Each Owner, by acceptance of a deed or other conveyance of a Unit, understands and agrees that there are various methods for calculating the square footage of a Unit, and that depending on the method of calculation, the quoted square footage of the Unit may vary. Additionally, as a result of in the field construction, other permitted changes to the Unit, and settling and shifting of improvements, �ctual square footage � of a Unit may also be affected. By accepting title to a Unit, the applicable Owner(s) shall be deemed to have conclusively agreed to accept the size and dimensions of the Unit, regardless of any variances in the square footage from that which may have been disclosed at any time prior to closing, whether included as part of Developer's promotional materials or otherwise. Without limiting the generality of this Section 3.1, Developer does not make any representation or warranty as to the actual size, dimensions (including ceiling heights) or square footage of any Unit. (e) Exceptions and Conflicts. In the case of any conflict between the boundaries of the Unit as above described and the dimensions of the Unit shown on Exhibit "C" the above provisions describing the boundary of a Unit shall control, it being the intention of this Declaration that the actual as-built boundaries of the Unit as above described shall control over erroneous dimensions contained in Exhibit "C" attached hereto, and in the event it shall appear that any dimension shown on Exhibit "C" attached hereto is erroneous, the Board of Directors or a majority of the voting interests of the Unit Owners shall have the right to amend the Declaration without a meeting to correct such survey, and any such amendment shall not require the joinder of any Institutional Mortgagee so lorig as the purpose of the amendment is merely to correct an error and correctly describe the boundaries of a Unit. In the case of Unit boundaries not adequately described as provided above, the survey of the Units contained in Exhibit "C" shall control in determining the boundaries of a Unit. In the case of any conflict between the language of this Declaration describing the boundaries of any Unit, and in the language contained on Exhibit "C" describing the boundaries of a Unit, the language of this Declaration shall control. (� Certain Items Exclusivelv Servin� a Unit. In addition to the area within the perimetrical and upper and lower boundaries described above, each Unit shall be deemed to include within its boundaries: all doors, windows, glass, screening, shutters, and any other materials covering openings in the exterior of the Unit, which serve the Unit exclusively. Provided however, no alteration of any of the forgoing may be performed without the prior written approval of the Association. Section 3.2 Common Elements The term "Common Elements" includes all of the real property of the Condominium not within Units, together with, and including, without limitation: (a) easements through Units for all of the following, and the conduits, pipes, ducts, vents, plumbing, wiring and other facilities, equipment and or fixtures for the furnishing of Utility services, heating and cooling and/or ventilation to Units and Common Elements and a Unit or Units other than, or in addition to, the Unit which such easements, facilities, equipment and/or fixtures pass through or traverse; (b) easements of support in every portion of a Unit which contribute to the support of other Units and/or Common Elements; (c) property and installations, including meters, for the furnishing of Utility services to more than one Unit or to the Common Elements or to a Unit other than the Unit containing the installation (notwithstanding the type of inetering of such Utility, as more particularly described below and 7 WPB_163511.3 March 3, 2006 notwithstanding the location of such installation and meter, whether within Units or Common Elements); (d) fixtures owned or held for the common use, benefit and enjoyment of all Owners of Units in the Condominium; (e) all stairwells not within the boundaries of any Unit, if any; (� all trash facilities; (g) all roofs; (h) all lighting and electrical fixtures wherever located on the Condominium Property outside the Unit which serve more than one Unit; (i) entries to Units, as depicted on Exhibit "C" hereto; and (j) those areas dedicated to SFWMD, or otherwise maintained or administered in accordance with the requirements of the SFWMD Permit, regardless of the entity or agency responsible for such administration or maintenance, including but not limited to, any portions of the Surface Water Management System located within the Condominium Property. The Common Elements include all Limited Common Elements defined in Section 3.3. Section 3.3 Limited Common Elements The term "Limited Common Elements" includes any and all Common Elements which are reserved herein, or assigned, or granted separately herefrom, for the use of a certain Unit or Units to the exclusion of other Units, including, without limitation: (a) the exclusive use of any porches, terraces, balconies, decks or similar structures connected with, adjacent to or adjoining the applicable Unit; (b) that portion of the Condominium Property which is designated on the Survey, Plot Plan, and/or Graphic Description as Limited Common Elements; (c) the non-exclusive use of the driveway adjacent to or in close proximity to the garage of each Unit by the Owner(s) of the Unit(s) served by the applicable driveway, as designated on Exhibit "C" hereto; (d) the exclusive use of any balconies and patios adjacent to Units; This Section 3.3 may be amended only in accordance with Article 16 hereof, but must be adopted by the affirmative vote of the Owners of one hundred percent (100%) of the Units. ARTICLE 4 APPURTENANCES TO UNITS/EASEMENTS In addition to the following easements, which are hereby created, there shall be appurtenant, and pass with title, to each Unit the rights, shares, and interests provided by the Condominium Act which shall be deemed to include, without limitation, the following: Section 4.1 Undivided Share in the Common Elements and Common Surplus. An undivided share in the Common Elements and in the Common Surplus, which share in the Common Elements cannot be conveyed or encumbered except together with the Unit and which share is undivided and shall not be subject to an action for partition. The undivided share in the Common Elements and the Common Surplus of the Condominium appurtenant to each Unit is based upon the square footage of each Unit in proportion to the total square footage of all Units, 8 WPB_163511.3 Mardi 3, 2006 as set forth in Exhibit "D". The undivided share in the Common Surplus of the Association appurtenant to each Unit is determined in accordance with the formula set forth in Section 12.1 hereof. Section 4.2 Limited Common Elements. The right to use exclusively, or in common with certain other Units. where so specified, those portions of the Common Elements designated and/or reserved herein and/or granted elsewhere to a certain Unit or Units as Limited Common Elements, including, without limitation, the exclusive use rights for the Limited Common Elements identified in Section 3.3 above. During such time as the Developer shall own any Unit in the Condominium, the Developer shall control and have the right (in lieu of the Association) to make all designations of Limited Common Elements. Until the Developer shall, in whole or in part, voluntarily relinquish the right to designate the Limited Common Elements, or until the Developer no longer owns a Unit, the Association shall not exercise the rights and authority herein granted to the Association in respect of Limited Common Elements, and all such rights shall be exclusively exercisable by the Developer. The Developer may at any time by an instrument in writing delivered to the Association relinquish in whole or in part any of its rights herein relative to the designation of Limited Common Elements. This provision regarding Limited Common Elements may not be amended without the written consent of the Developer during such periods of time as the Developer shall have any rights hereunder to designate or control the designation of Limited Common Elements. Section 4.3 Air Space. An exclusive easement for the use of the air space occupied by the Unit as it exists at any particular time and as it may lawfully be altered or reconstructed from time to time, which easement shall be terminated automatically in any air space which is permanently vacated from time to time. Section 4.4 Non-exclusive Use of Common Elements. Non-exclusive easements, to be used and enjoyed in common with the Owners of all Units in the Condominium in such a manner as not to hinder or encroach upon the lawful rights of other Unit Owners, for use of those Common Elements not designated elsewhere herein as Limited Common Elements, including, without limitation, easements for: (a) the furnishing and maintenance of public Utility services to all parts of the real property of the Condominium over, across, in and through the land, Buildings and other improvements, as the fixtures and equipment therefor now exist and/or may be modified or relocated. Further, some or all Utilities may be metered for the entire project, submetered by Building or Unit or as otherwise determined from time to time by Developer and/or the Board of Directors in their respective sole discretion; (b) vehicular and pedestrian access over, across, upon, in and through the drives, entries, gates, walks, grounds, and other portions, if any, of the Common Elements as are intended and/or provided for pedestrian and vehicular traffic throughout the Condominium; and (c) vehicular and pedestrian access over, across, upon, in and through, and for parking upon, the Condominium Property. 9 WPB_163511.3 March 3, 2006 Section 4.5 Encroachment. An exclusive easement for the unintentional and non-negligent encroachment by any Unit upon any other Unit or Common Element, or vice versa, for any reason not caused by or resulting from the willful or negligent act of Developer or any Unit Owner or Owners, including without limitation, encroachments caused by or resulting from the original construction of improvements, which exclusive easement shall exist at all times during the continuance of such encroachment as an easement appurtenant to the encroaching Unit or other improvement, to the extent of such encroachment and shall also include an easement for the maintenance and use of the encroaching Unit. Section 4.6 Rixht to Association Membership. The right to membership in the Association, upon the terms and conditions set forth in Article 5. 5ection 4.7 Support. Each Unit and any structure and/or improvement now or hereafter constructed within the Condominium Property shall have an easement of support and of necessity and shall be subject to an easement of support and necessity in favor of all other Units, the Common Elements and such other improvements constructed upon the Condominium Property. Section 4.8 Utilitv and Other Services; Draina�e. Non-exclusive easements are reserved under, through and over the Condominium Property as may be required from time to time for Utility, cable television, communications and monitoring systems, and other services and drainage in order to serve the Condominium and/or members of the Association. A Unit Owner shall do nothing within or outside his Unit that interferes with or impairs, or may interfere witli or impair; the provision of such Utility, cable television, communications and security systems, or other service or drainage facilities or the use of these easements. Some or all Utilities may be metered for the entire project, sub-metered by Unit or as otherwise determined from time to time by Developer and/or Board of Directors in their respective sole discretion. Section 4.9 Cable TV and Communication Devices. The Developer reserves unto itself, its successors, assigns, contractors, designees and nominees, (i) ownership of any closed circuit, master antenna, community antenna or cable television system or the like (including any and all related conduits, wires, amplifiers, antennas, towers and other apparatus and equipment) which it (or one of its successors, assigns, designees or nominees) installs in part or whole on the Condominium Property and/or Association Property (any such system and its related apparatus and equipment being hereinafter referred to as the "CATV System"), (ii) Ownership of any digital satellite system and/or device for internet web-site communication or the future equivalent (including any and all related conduits, wires, amplifiers, antennas, towers and other apparatus and equipment) which it or one of its successors, assigns, designees or nominees) installs in part or in whole on the Condominium Property and/or Association Property (any such system and its related apparatus and equipment being hereinafter referred to as the "DSS System"), (iii) a perpetual easement over, through and across the Condominium Property and the Association Property for the installation, servicing, maintenance, repair, replacement and removal of the CATV System, the DSS System, or any part thereof, (iv) the right to connect the CATV Systerii and/or the DSS System to whatever receiving source the owner of the CATV System or the DSS System deems appropriate, (v) the right to enter the Units, upon reasonable notice to the Unit Owner for the purpose of repairing or replacing any portion of any closed circuit, master antenna, community antenna, digital satellite dish, or cable television system of 10 WPB 163511.3 March 3, 2006 which he has retained ownership, and (vi) the right to provide (or cause to be provided) ' mandatory or non-mandatory services to Units through the CATV System and/or the Digital System (and related, ancillary services to Units, including, but not limited to, security-related services) at charges not to exceed those normally paid for like services by residents of single- family homes or condominium units within the general vicinity of the Condominium, and to retain or assign all such charges. The foregoing reservation will terminate on the date on which the Developer no longer holds any Units for sale in the ordinary course of business and as to Association Property, when the Developer no longer holds any unit governed by the Association for sale in the ordinary course of business. Section 4.10 �ecial Telephone Services. The Developer reserves unto itself, its successors, assigns, contractors, designees and nominees, (i) ownership of any telephone system whether land based, cellular or the future equivalent (including any and all related conduits, wires and other apparatus and equipment) which it (or one of its successors, assigns, designees or nominees) installs in part or whole on the Condominium Property and/or Association Property (any such system and its related apparatus and equipment being hereinafter referred to as the "Telephone System"), (ii) a perpetual easement over, through and across the Condominium Property for the installation, servicing, maintenance, repair, replacement and removal of the Telephone System or any part thereof, and (iii) the right to provide (or cause to be provided) mandatory or non-mandatory services to Units through the Telephone System (and related, ancillary services), and to retain or assign the charges collected from Owners therefor. The foregoing reservation will terminate on the date on which the Developer no longer holds any Units for sale in the ordinary course of business, and as to Association Property, when the Developer no longer holds any unit governed by the Association for sale in the ordinary course of business. Section 4.11 Surface Water Draina�e and Management Svstem. (a) All Owners acknowledge that the Condominium Property is located within the boundaries of The Preserve At Tequesta which is within the jurisdiction of the South Florida Water Management District ("SFWMD"). (b} Maintenance of the Surface Water Management System shall mean the exercise of practices which allow the systems to provide drainage, water storage, conveyance or other surface water or stormwater management capabilities as permitted by SFWMD and other governmental authorities and shall include, but not be limited to, maintenance of specific drainage easement areas, as 'well as any repair or reconstruction of the surface water or stormwater management system shall be as permitted, or if modified, as approved by SFWMD. (c) Neither the Association nor any Unit Owner shall take any action which modifies the Surface Water Management System, except to the extent the same is approved by the requisite governmental authorities, including SFWMD. (d) Portions of the Condominium Property may be burdened with easements that allow for the installation, operation and maintenance of and for the drainage and flow of surface water in a manner consistent with the approval and constructed Surface Water Management System. 11 WPB_163511.3 Marcli 3, 2006 (e) The Developer may, in its discretion, cause the Association without payment of any compensation or purchase price, to convey their ownership interest in, or grant an easement to, the Surface Water Management System within their respective common elements and/or Association Property together with easements for access, operation, maintenance, monitoring, repair, replacement, improvement and/or removal of the Surface Water Management System. Any such conveyance or grant may, but shall not be required to, assign responsibilities for operation, maintenance, monitoring, repair, replacement, improvement andlor removal to SFWMD. (� In addition to the requirements for amendments set forth in Article 16 hereof, any amendment or Supplement to this Declaration which would affect the Surface Water Management System must be approved by SFWMD. (g) SFWMD shall have the right to enforce, by a proceeding at law or in equity, the provisions contained in this Declaration which relate to the maintenance, operation, mornitoring, repair and replacement of the Surface Water Management System. Section 4.12 Perpetual Easement. A non-exclusive perpetual easement is hereby granted for vehicular and pedestrian access over, across, upon, in and through all private roads within the Association Property, including without limitation, the area designated as the perimeter road easement, as well as other areas designated for vehicular or pedestrian access to the pool, decks, and other amenities within the Association Property, for all purposes set forth in the Master Declaration. ARTICLE 5 MULTI-CONDOMINIUM ASSOCIATION Section 5.1 Functions and Duties. The Association shall be responsible for the maintenance, management and operation of this Condominium, the Association Property and other condominiums located or to be located on property in close proximity to this Condominium and designated as The Preserve at Tequesta Townhomes 1 through 9, each a Condominium and located or to be located within the Future Development Property, together with the maintenance, management and operation of all improvements and amenities located in the forgoing. Section 5.2 Membership. The Owner of each Unit shall become a member of the Association automatically upon and simultaneously with receipt of a deed of conveyance of � fee title to a Unit from Developer, or in the case of a conveyance by a grantee or remote grantee of Developer, upon receipt of a deed evidencing a conveyance of fee title. Membership in the Association may not be transferred separate and apart from a conveyance of the Unit. Membership in the Association shall terminate upon conveyance or transfer of the Unit, whether voluntary or involuntary. Section 5.3 Votin�Rights. There shall be one vote appurtenant to each Unit and the total number of votes in the Association shall equal the total number of Units in this Condominium, plus the total number of units in all other condominiums whose unit owners are members of the Association. If a Unit Owner owns more than one Unit, the Unit Owner shall be 12 WPB_163511.3 March 3, 2006 entitled to one vote for each Unit owned. If a Unit is owned by more than one person, the manner in which the vote shall be cast shall be determined in the manner provided in the Bylaws.. The Association will operate multiple condominiums, and accordingly, the voting interests set forth in this Declaration and the Bylaws are the voting rigfits attributed to the Unit Owners of The Preserve at Tequesta Townhomes 1, and to unit owners in all condominiums operated by the Association. Each unit owner (including all Unit Owners) will have a right to cast his or her vote as to matters affecting all members of the Association, and as to matters affecting only the particular condominium in which each unit owner's unit is located. On matters related to a specific condominium, the voting interests are the rights of the unit owners of that specific condominium only. On matters related to all members of the Association or the Association generally and not specific to any condominium, the voting interests are the rights of all members of the Association. The only voting interests eligible to vote on questions that involve waiving or reducing the funding of reserves, or using existing reserve funds for purposes other than intended, are the voting interests of the units subject to assessment to fund the reserves in question. Section 5.4 Association Mana eg ment. The Association shall have the power from time to time to enter into agreements with a manager or management company, and to the extent permitted by law, to delegate maintenance, management, and operational duties and obligations to such manager or management company. Section 5.5 Right of Access. The Association shall have the irrevocable right of access to each Unit during reasonable hours when necessary for pest control purposes and for the maintenance, repair or replacement of any Common Elements, any Limited Common Elements, or any portion of a Unit, to be maintained by the Association pursuant to the Declaration, or at any time for making emergency repairs necessary to prevent damage to the Cominon Elements, Limited Common Elements, or to a Unit or Units, including, without limitation (but without obligation or duty), to close hurricane shutters in the event of the issuance of a storm watch or storm warning and to do other work reasonably necessary for the proper maintenance and operation of the Condominium. Section 5.6 Board of Directors. The business and affairs of the Associations shall be managed and governed by a Board of Directors. The first Board of Directors shall consist of three (3) persons who shall serve in accordance with the Bylaws of the Association, a copy of which is attached hereto and made a part hereof as Exhibit "F". Each of the members of all succeeding Board of Directors shall be Members of the Association, or shall be authorized representatives, officers or employees of a corporate Member of the Association, except for those Directors who are appointed by Developer. 13 WPB_163511.3 March 3, 2006 ARTICLE 6 MAINTENANCE, REPAIRS AND REPLACEMENTS Responsibility for maintenance, repairs and replacements of Condominium Property and property of Unit Owners located or situated within the Condominium, shall be as follows and the type of inetering of Utilities and location of Utility meters/installations, as more particularly described in Section 4.4(a) hereof, shall not alter the maintenance, repair, and replacement obligations set forth in this Declaration, unless expressly amended: Section 6.1 Units. Each Owner shall maintain, repair and replace, as necessary, all portions of his Unit, including but not limited to the fixtures, equipment and appliances located therein or exclusively serving the same. Each Owner shall also maintain and keep the porches, balconies and terraces in an orderly condition, and repair or replace any damaged improvements therein, including without limitation, screens, terrace or porch flooring and exterior ceiling fans located on such terraces or porches. Each Unit Owner shall be responsible for the expense of any incidental damage to Common Elements resulting from maintenance, repairs and/or replacement of or to that Owner's Unit and which damaged Common Elements shall be repaired/replaced by the Association at the expense of such Unit Owner. All maintenance, repairs and/or replacements, which are the responsibility and obligation of Unit Owners, and which, if not performed or omitted, would affect other Units or Common Elements, shall be performed promptly as the need arises. Notwithstanding the obligation of Unit Owners to perform maintenance, repair and replacement of and in Units, the proceeds of all insurance awards or payments under insurance carried by the Association for loss of or damage to or within Units shall be applied against repairs and replacements to the extent that such award or payments exceed the deductible provisions of such insurance. If a Unit Owner fails to perform promptly his responsibilities of repair, maintenance and replacement, the Association shall be entitled to seek all remedies available at law, including the right to take legal action to require the Unit Owner to perform the responsibilities. Section 6.2 Common Elements. Except as set forth above in Section 6.1 to the contrary, the Association shall be responsible for maintaining, repairing, replacing and keeping in clean and orderly condition, all of the Common Elements. The Association, at the expense of the Owners of all Units in the Condominium, shall repair any and all incidental damage to Units resulting from maintenance, repairs and/or replacements of or to Common Elements. Section 6.3 Limited Common Elements. In addition to the obligation of each Unit Owner to maintain the Unit, as well as all Limited Common Elements appurtenant to the Owner's Unit, the Association shall be responsible for maintaining, repairing, replacing, and keeping in clean and orderly condition, any Common Elements designated herein as Limited Common Elements to the extent that the responsibility for the same has not been specifically designated herein as the responsibility of the Owner of the Unit to which such Limited Common Element is an appurtenance. Provided that, the cost of the same shall be borne by the Owner(s) of the Unit(s) to which said Limited Common Elements are appurtenant as a Common Expense if the maintenance thereof is provided on a uniform basis by the Association to all Owner(s). If a Unit Owner fails to perform promptly his responsibilities of repair, maintenance and 14 WPB_163511.3 March 3, 2006 replacement, the Association shall be entitled to seek all remedies available at law, including the right to take legal action to require the Unit Owner to perform the responsibilities. Section 6.4 Maintenance and Re�air Necessitated b� Ne�li�ence of Unit Owners A Unit Owner shall be responsible for the expense of any maintenance, repair or replacement rendered necessary by the act, neglect or carelessness of such Unit Owner or his guests, employees, agents, lessees or other invitees, but only to the extent that such expense is not met by proceeds of insurance carried by the Association for the applicable loss or damage. In addition, the Association shall have all rights and remedies set forth in Section 6.1 above. Section 6.5 Association Right to Perform Remedial Maintenance. The Association shall have the right, but not the obligation to perform remedial and continuing maintenance to Units and other areas which are the responsibility of the Unit Owner where it has been determined by the Association that the Unit Owner having responsibility for the maintenance of the subject property has failed to properly maintain same in good condition as determined by the Association in its sole discretion. In such event, the Association shall provide written notice to the Unit Owner indicating the failure of maintenance and requesting that such failure be remedied and abated within ten (10) days thereafter. If such failure is not remedied and abated within said time period, in addition to the rights and remedies of the Association set forth in Section 6.1 above, the Association shall have the right, but not the obligation to perform said maintenance and charge the Unit Owner for the cost of such maintenance and repair performed by the Association, or its designees. ARTICLE 7 INSURANCE Insurance shall be carried and kept in force at all times in accordance with the provisions of Section 718.111(11) Florida Statutes and the following: Section 7.1 Duty and Authoritv to Obtain. The Association shall obtain and keep in force at all times the insurance coverage which it is required hereby to carry and may obtain and keep in force any or all of such other or additional insurance coverage as it is authorized hereby to carry. All insurance obtained by the Association shall be purchased for the benefit of the Association, the Unit Owners and their mortgagees. The Owner of each Unit shall, at the expense of such Owner, obtain insurance coverage against damage to and loss of those portions of the Unit for which the Unit Owner has the maintenance obligation and may obtain insurance coverage against damage to and loss of the contents of the Unit, personal liability for injury to and death of persons and damage to and loss of personal property of others; provided, that each policy of such insurance purchased by a Unit Owner shall, where such provision is available, provide that the insurer waives its right of subrogation as to any claim or claims against other Unit Owners, the Association, and their respecti�e employees, agents, guests and invitees. Section 7.2 Required Covera�e. The Association shall purchase and carry insurance coverage as follows: 15 WPB 163511.3 March 3, 2006 (a) Casualt�Insurance. Casualty insurance covering the Buildings and all other improvements of this Condominium and the Association Property in an amount equal to the maximum insurance replacement value thereof (subject to reasonable deductible clauses) exclusive of excavation and Master costs, as determined annually by the Board of Directors of the Association, such insurance to afford protection against: (i) loss or damage by fire or other hazards covered by the standard extended coverage or other perils endorsement; (ii) such other risks of a similar or dissimilar nature as are or shall be customarily covered with respect to buildings and other improvements similar in construction, location and use, to the Buildings and all other improvements of this Condominium and of the Association Property, including, without limitation, vandalism, malicious mischief, windstorm, water damage and, if available, war risk insurance; (b) Com�prehensive General Public Liabilitv Insurance. Comprehensive General Public Liability Insurance in an amount not less than One Million Dollars ($1,000,000.00) for single coverage and combined coverage in the amount of Two Million Dollars ($2,000,000.00) in such forms as shall be required by the Board of Directors of the Association to protect the Association, and the Owners of all Units, including, without limitation, hired automobile, non-owned automobile, off-premises employee coverage, water damage and legal liability, with cross-liability, endorsements to cover liability of all Unit Owners as a group to each Unit Owner, (c) Workers Com�ensation Insurance. Workers Compensation Insurance to meet the requirements of law; (d) Flood Insurance. Flood Insurance, if the same shall be necessary under the laws of the United States for federally related mortgage loans to be made upon Units; (e) Fidelity Insurance. Fidelity Insurance covering all officers and employees of the Association and any managing agent who handles Association funds; (� Officers' and Directors' Insurance. Officers' and Directors' Insurance in such amounts as the Board may determine from time to time. (g) Certificates of Insurance. The Association shall provide, or cause to be provided, for the Unit Owners, if needed in connection with a sale or purchase of a Unit or otherwise, Certificates of Insurance indicating the types and amounts of insurance coverage then in existence relative to the Association; (h) Waiver bv Insurer. Wherever obtainable and practical the insurance policies shall waive the insurer's right to: (i) subrogation against the Association and against Unit Owners individually and as a group; (ii) any provision that reserves to the insurer the right to pay only a fraction of any loss if other insurance carriers have issued coverage upon the same risk, and (iii) avoid liability for a loss that is caused by an act of the Board of Directors of the 16 WPB_163511.3 March 3, 2006 Association, or by a member of the Board of Directors of the Association or by one or more Unit Owners. Section 7.3 O�tional Covera�e. The Association shall purchase and carry such other insurance coverage as the Board of Directors of the Association, in its sole discretion, may determine from time to time to be in the best interests of the Association and Unit Owners. Section 7.4 Premiums. Premiums for all insurance obtained and purchased by the Association shall be paid by the Association. The cost of insurance premiums, and other incidental expenses incurred by the Association in administering and carrying out the provisions of this Section, shall be assessed against and collected from Unit Owners as a Cornmon Expense or Association Common Expense, as applicable. Section 7.5 Assured. All policies of insurance obtained and purchased by the Association shall be for the benefit of the Association, the Owners of Units and their mortgagees, as their interests may appear, and shall provide that all proceeds covering casualty losses shall be paid to the "Insurance Trustee," as herein identified, or to its successor, and the proceeds from insurance against any casualty loss shall be held for the use of the Association, Unit Owners and their respective mortgagees, as their interests may appear, to be applied or distributed in the manner herein provided. The Association is hereby constituted and appointed agent for all Unit Owners and their mortgagees, with authority to negotiate and settle the value and extent of any and all losses covered under any policy of casualty insurance, and the Association is granted full right and authority to execute, in favor of any insurer, a release of liability arising out of any occurrence covered by any policy or policies of casualty insurance and resulting in loss of or damage to insured property. Section 7.6 Insurer. All insurance policies shall be issued by an insurer duly authorized to do business in Florida. All persons beneficially interested in the insurance coverage obtained, purchased and maintained by the Association shall be bound by the Association's selection of its insurer(s) and the amount of insurance coverage carried and kept in force by the Association. Section 7.7 Insurance Trustee. The Association shall have the right, but not the obligation, prior to or upon the occurrence of any event causing or resulting in the need for the same, to designate the Insurance Trustee and all persons beneficially interested in such insurance coverage shall be bound by the Association's selection of the Insurance Trustee. (a) ,Qualifications, Ri�hts and Duties. The Insurance Trustee shall be a bank with trust powers doing business in the State of Florida. The Insurance Trustee shall not be liable for the payment of premiums, the renewal of any policy or policies of casualty insurance, the sufficiency of coverage, the form or content of policies, nor for the failure to collect any insurance proceeds. The sole duty of the Insurance Trustee shall be to receive such proceeds of casualty insurance as are paid and to hold the same in trust for the purposes herein stated, and for the benefit of the Association, Unit Owners and their respective mortgagees, to be disbursed as herein provided. The Association shall pay a reasonable fee to the Insurance Trustee for services rendered hereunder and shall pay such costs and expenses as the Insurance Trustee may incur in the performance of its duties hereunder; such fees and costs to be assessed against and collected 17 WPB_163511.3 Marcli 3, 2006 from Unit Owners as a Common Expense or an Association Common Expense, as applicable. The Insurance Trustee shall be liable only for its willful misconduct, bad faith or gross negligence, and then only for such money as may come into the possession of the Insurance Trustee. If and when the Insurance Trustee is required to distribute insurance proceeds to Unit Owners and their mortgagees as their respective interests may appear the Insurance Trustee may rely upon a certificate of the President and Secretary of the Association, executed under oath and provided to the Insurance Trustee upon request; such certificate to certify the name or names of the Owners of each Unit, the mortgagee(s) thereof, and the respective percentages of any distribution which is to be made to such Owner(s) and mortgagee(s), as their respective interests may appear. If and when insurance proceeds are paid to the Insurance Trustee for any casualty loss, the holder(s) of any mortgage or mortgages encumbering a Unit shall not have the right to determine or participate in the determination of repair or replacement of any loss or damage and shall not have the right to elect to apply insurance proceeds to the reduction of indebtedness secured by such mortgage(s), unless the insurance proceeds represent a distribution to the Owner(s) of the Unit and the mortgagee(s) thereof, after such insurance proceeds have been first applied to the repair, replacement or reconstruction of any loss or damage, or unless such casualty insurance proceeds are authorized to be distributed to the Owner(s) of the Unit and the mortgagee(s) thereof by reason of loss of or damage to personal property constituting a part of the Common Elements and as to which a determination is made not to repair, replace or restore such personal property. Section 7.8 Association as Insurance Trustee. If the total of the funds to be received by the Association from insurance proceeds and assessments against Unit Owners for payment of repair and reconstruction costs is more than One Hundred Thousand Dollars ($100,000.00), or if a majority of affected mortgagees request, then all such sums shall be deposited by the Association with and disbursed by the Insurance Trustee. In all other cases the Association may act as Insurance Trustee and shall hold such sums so assessed and collected and shall disburse the same in payment of the costs of reconstruction and repair as provided in this Article 7. Section 7.9 Anplication of Insurance Proceeds. The proceeds of casualty insurance paid to the Association or Insurance Trustee by an insurer for loss or damage to real and/or personal property upon which the Association carries insurance, shall be applied and paid as follows: (a) Common Elements Onl_y_. The proceeds paid to the Association or Insurance Trustee for loss of or damage to property constituting Common Elements only shall be applied to the repair, replacement or reconstruction of such loss or damage. If such insurance proceeds exceed the cost of the repair, replacement or reconstruction of such Common Elements, the excess shall be paid by the Association or Insurance Trustee, as applicable, to the Owners of all Units, and their respective mortgagees, as their interests may appear, in shares or proportions equal to the undivided interests appurtenant to the cost of the repair, replacement or reconstruction of such Common Elements, the Association shall deposit with the Insurance Trustee, from any Association reserve fund which may have been established, the difference between the total cost of repairing, replacing or reconstructing such loss or damage and the amount of the insurance proceeds. If no such Association reserve fund has been established, or if any such Association reserve fund has been established and is insufficient to pay the amount of 18 WPB_163511.3 March 3, 2006 such difference, the Association shall assess the amount of the difference against, and collect it from, all Unit Owners as a Common Expense. (b) Common Elements and Units. The proceeds paid to the Association or Insurance Trustee for loss of or damage to property constituting Common Elements and one or more Units shall be first applied to the repair, replacement or reconstruction of Common Elements, then to the repair, replacement or reconstruction of any Unit or Units in the Building which have been destroyed or damaged. If such insurance proceeds exceed the cost of the repair, replacement or reconstruction of such Common Elements and Units, the excess shall be paid by the Association or Insurance Trustee to the Owners of the damaged or destroyed Units and their respective mortgagees, as their interests may appear, in shares or proportions based upon the undivided interest appurtenant to each Unit in the Common Elements. If the insurance proceeds shall be sufficient to pay for the repair, replacement or reconstruction of the Common Elements but shall be insufficient to pay the cost of the repair, replacement or reconstruction of the damaged or destroyed Unit or Units, the Association shall charge the Owner(s) of the Unit(s) damaged or destroyed for the amount of the difference in the proportion that the amount of damage sustained by each such Unit bears to the total deficit, and upon receipt of payment, deposit such sum with the Association or Insurance Trustee to be applied by the Association or Insurance Trustee toward the total cost of repairing, replacing or reconstructing all of such damaged or destroyed Common Elements and Units. If the insurance proceeds shall be insufficient to pay the cost of the repairs, replacements, or reconstruction of the Common Elements (to which the Association or Insurance Trustee is required first to apply such proceeds before applying any part thereof to the repair, replacement or reconstruction of Units), the difference between the total cost of repairing, replacing or reconstructing the Common Elements and the amount of the insurance proceeds shall be charged by the Association against, and collected from all Unit Owners, and, in such event, the cost of repairing, replacing or reconstructing the Unit or Units destroyed or damaged shall be charged to the Owner(s) of such damaged or destroyed Unit(s). (c) Association Propertv Onlv. The proceeds paid to the Association or Insurance Trustee for loss of or damage to property constituting Association Property only shall be applied to the repair, replacement or reconstruction of such loss or damage. If such insurance proceeds exceed the cost of the repair, replacement or reconstruction of such Association Property, the excess shall be deposited by the Association or Insurance Trustee, as applicable, into an Association reserve fund for future repairs to, replacement or reconstruction of Association Property. If the insurance proceeds shall be insufficient to pay the cost of the repair, replacement or reconstruction of such Association Property, the Association shall deposit with the Insurance Trustee, from any Association reserve fund which may have been established, the difference between the total cost of repairing, replacing or reconstructing such loss or damage and the amount of the insurance proceeds. If no such Association reserve fund has been established, or if any such Association reserve fund has been established and is insufficient to pay the amount of such difference, the Association shall assess the amount of the difference against, and collect it from, all Unit Owners, and all unit owners in all other condominiums governed by the Association, as an Association Common Expense. (d) Association Pro�ertv Common Elements and Units. 19 WPB_163511.3 March 3, 2006 (i) The proceeds paid to the Association ar Insurance Trustee for loss of or damage to property constituting Association Property, . Common Elements and one or more Units shall be first applied to the repair, replacement or reconstruction of Association Property, then to the repair, replacement or reconstruction of any Common Elements, then to the repair, replacement or reconstruction of any Unit or Units in the Building which have been destroyed or damaged. If such insurance proceeds exceed the cost of the repair, replacement or reconstruction of such Association Property, Common Elements and Unit or Units, the excess shall be paid by the Association or Insurance Trustee to the Owners of the damaged or destroyed Units and their respective mortgagees, as their interests may appear, in shares or proportions based upon the undivided interest appurtenant to each Unit in the Common Elements. (ii) If the insurance proceeds shall be sufficient to pay for the repair, replacement or reconstruction of the Association Property and Common Elements but shall be insufficient to pay the cost of the repair, replacement or reconstruction of the damaged or destroyed Unit or Units, the Association shall charge the Owner(s) of the Unit(s) damaged or destroyed for the amount of the difference in the proportion that the amount of damage sustained by each such Unit bears to the total deficit, and upon receipt of payment, deposit such sum with the Association or Insurance Trustee to be applied by the Association or Insurance Trustee toward the total cost of repairing, replacing or reconstructing all of such damaged or destroyed Units. (iii) If the insurance proceeds shall be sufficient to pay the costs of the repairs, replacement or reconstruction of the Association Property but are insufficient to pay the cost of the repairs, replacement, or reconstruction of the Common Elements (to which the Association or Insurance Trustee is required to apply such proceeds before applying any part thereof to the repair, replacement or reconstruction of Units), the difference between the total cost of repairing, replacing or reconstructing the Common Elements and the amount of the insurance proceeds shall be charged by the Association against, and collected from all Unit Owners, and, in such event, the cost of repairing, replacing or reconstructing the Unit or Units destroyed or damaged shall be charged to the Owner(s) of such damaged or destroyed Unit(s). (iv) If the insurance proceeds shall be insufficient to pay the cost of the repairs, replacement or reconstruction of the Association Property (to which the Association or Insurance Trustee is required first to apply such proceeds before applying any part thereof to the repair, replacement or reconstruction of the Common Elements), the difference between the total cost of repairing, replacing or reconstructing the Association Property and the amount of the Insurance Proceeds shall be charged by the Association against and collected from all Unit Owners 20 WPB_163511.3 March 3, 2006 and all unit owners in all other condominiums governed by the Association, as an Association Common Expense, and in such event the cost of repairing, replacing or reconstructing the Association Property destroyed or damaged shall be charged to the Unit Owners and the unit owners in all other condominiums governed by the Association in shares or proportions equal to the undivided interests appurtenant to each Unit in the Common Elements in this Condominium and the undivided interests appurtenant to each unit in the other condominiums governed by the Association, and their respective common elements). (e) Deposits to Association or Insurance Trustee After Dama�e. Within forty-five (45) days after a loss of or damage to Condominium Property and/or Association Property covered by casualty insurance, the Association shall obtain estimates of the cost of repairing, replacing or restoring the same, including the cost of professional fees and any construction bond which the Board of Directors may require. If, from such estimates, it shall appear that the insurance proceeds payable for such loss or damage will be insufficient to pay the cost of such repair, replacement or reconstruction, the additional money required to pay the total cost thereof, whether it is to be paid by one or more Unit Owners, shall be deposited with the Association or Insurance Trustee not later than thirty (30) days from the day on which the Association or Insurance Trustee, as applicable, receives the insurance proceeds. ARTICLE 8 RECONSTRUCTION OR REPAIR AFTER CASUALTY Whether, and the manner in which, any or all of the Condominium Property damaged or destroyed by casualty shall be repaired, reconstructed or replaced shall be determined as follows: Section 8.1 Damage to Units. If the Units to which more than fifty percent (50%) of the Common Elements are appurtenant are found by an engineer selected by the Board of Directors to be untenantable as a result of damage by casualty, then the damaged property will not be reconstructed and the Condominium will be automatically terminated unless within one hundred eighty (180) days after the casualty Unit Owners owning a majority or more of the Common Elements agree in writing to such reconstruction. If the damage is to units to which fifty percent (50%) or less of the Common Elements are appurtenant are found by an engineer selected by the Board of Directors to be untenantable, then the property will be reconstructed, unless within one hundred eighty (180) days after the casualty Unit Owners owning a majority or more of the Common Elements agree in writing to terminate, as elsewhere provided in the Declaration or the Florida Condominium Act. Section 8.2 Certificate. The Insurance Trustee may rely upon a certificate executed by the President and Secretary of the Association to determine whether or not damaged or destroyed Association Property or Condominium Property shall be repaired or reconstructed. Section 8.3 Plans and Specifications. Repair or reconstruction of Association Property or Common Elements shall be substantially in accordance with the plans and 21 WPB_163511.3 March 3, 2006 specifications pursuant to which the same was originally constructed; provided that the Board of Directors of the Association may authorize reasonable variations from the original plans and specifications as may appear to them to be necessary or desirable, or if required by applicable building code, ordinances or laws in existence upon the date of the proposed repairs or reconstruction. Repair or reconstruction of a Unit shall be substantially in accordance with the plans and specifications pursuant to which the same was originally constructed; provided that the Board of Directors, at the request of the Unit Owner, may authorize reasonable variations from the original plans and specifications upon receipt by the Association from the Unit Owner of evidence that the Unit Owner will comply with the obligations set forth in Section 8.4. The Association will, upon request, furnish the Unit Owner with the original plans and specifications for the Unit. Section 8.4 Responsibilitv. If the damage or destruction shall be limited only to one or more Units for which the responsibility of maintenance and repair is that of the affected Unit Owners as set forth in Article 6 hereof, then such Unit Owners shall be responsible for carrying out the repair or reconstruction thereof. In all other instances of damage or destruction, the Association shall be responsible for carrying out the repair and reconstruction thereof. Section 8.5 Construction Funds. All funds for the payment of repair and reconstruction costs, consisting of insurance proceeds and/or funds collected by the Association from Unit Owners, shall be disbursed toward payment of such costs in the following manner: (a) Collection and Disbursement A e�nt. Insurance collected on account of a casualty, and the sums assessed ag"ainst and collected from Unit Owners by the Association and deposited with the Association or Insurance Trustee, as applicable, shall constitute a construction fund which shall be disbursed in payment of the costs of repair and reconstruction in the following manner: (i) Units. Upon confirmation by the Association, and notice to the Insurance Trustee, if such Trustee has been designated under this Article, that the Association has received from the affected Unit Owner(s) evidence reasonably acceptable to the Association that repair and reconstruction as required herein has been or will be performed, the portion of insurance proceeds representing damage far which the responsibility of repair and reconstruction is upon one or more Unit Owners shall be paid by the Association or Insurance Trustee to the affected Unit Owners and, if any of such Units are mortgaged, to the affected Unit Owners and their mortgagees jointly. (ii) Association Pro�erty/Common Elements - Minor Dama�e. If the amount of the estimated costs of reconstruction and repair which is the responsibility of the Association is Two Hundred Fifty Thousand and no/100 Dollars ($250,000.00) or less, then the construction fund shall be disbursed in payment of such cost upon the order of the Association; provided, however, that upon request to the Association or Insurance Trustee, as applicable, by a mortgagee which is a beneficiary of an insurance policy the proceeds of which are included in the construction 22 WPB_163511.3 March 3, 2006 fund, such fund shall be disburs�d in the manner hereafter provided for the reconstruction and repair of major damage. (iii) Association Pro ert /Common Elements - Ma'or Dama e. If the amount of the estimated costs of reconstruction and repair which is the responsibility of the Association is more than Dollars ($ ), then the construction fund shall be disbursed in payment of such costs in the manner required by the Board of Directors of the Association and upon approval of an architect registered to practice in Florida and employed by the Association to supervise the work. (iv) Su lus. It will be presumed that the first monies disbursed in payment of costs of reconstruction and repair are from insurance proceeds. If there is a balance in the construction fund after payment of all costs of the reconstruction and repair for which the fund is established, such balance will be distributed to the beneficial Owners of the fund in the manner elsewhere herein stated; except, however, that the part of a distribution to a beneficial Owner which is not in excess of assessments paid by such Owner into the construction fund shall not be made payable to any mortgagee. (v) Certificate. Notwithstanding anything to the contrary contained herein, the Insurance Trustee will not be required to determine whether or not sums paid by Unit Owners upon assessments are to be deposited by the Association with the Insurance Trustee, nor to determine whether the disbursements from the construction fund are to be upon the order of the Association or upon approval of an engineer, an architect or otherwise, nor whether a disbursement is to be made from the construction fund, nor to determine the payee nor the amount to be paid, nor to determine whether surplus funds to be distributed are less than the assessments paid by Owners. Instead, the Insurance Trustee may rely upon a certificate of the Association made by its President and Secretary as to any or all of such matters and stating that the sums to be paid are due and properly payable and stating the name of the payee and the amount to be paid; provided that, when a mortgagee is herein required to be named as payee, the Insurance Trustee shall also name the mortgagee as payee and when the Association, or a mortgagee which is the beneficiary of an insurance policy, the proceeds of which are included in the construction fund, so requires, the approval of such disbursement by an architect or engineer named by the Association, shall be first obtained by the Association. 23 WPB_163511.3 Marcli 3, 2006 ARTICLE 9 . CONDEMNATION Section 9.1 Deposit of Awards with Insurance Trustee. The taking of Association Property and/or Condominium Property by condemnation shall be deemed to be a casualty, and the awards for that taking shall be deemed to be proceeds from insurance on account of the casualty and shall be deposited with the Insurance Trustee. Even though the awards may be payable to Unit Owners, the Unit Owners shall deposit the awards with the Insurance Trustee; and in the event of failure to do so, in the discretion of the Board of Directors, the Association may charge a defaulting Unit Owner for the amount of his award, or the amount of that award shall be set off against the sums hereafter made payable to that Owner. Section 9.2 Determination Whether to Continue Condominium. Whether the Condominium will be continued after condemnation will be determined in the manner provided for determining whether damaged property will be reconstructed and repaired after casualty. Por this purpose, the taking by condemnation shall be deemed to be a casualty. Section 9.3 Disbursement of Funds. If the Condominium is terminated after condemnation, the proceeds of the awards and special assessments will be deemed to be Condominium Property and shall be owned and distributed in the manner provided for insurance proceeds if the Condominium is terminated after a casualty. If the Condominium is not terminated after condemnation, the size of the Condominium will be reduced, the Owners of condemned Units will be made whole and the property damaged by the taking will be made useable in the manner provided below. The proceeds of the awards and special assessments shall be used for these purposes and shall be disbursed in the manner provided for disbursement of funds by the Insurance Trustee after a casualty. Section 9.4 Unit Reduced but Tenantable. If the taking reduces the size of a Unit and the remaining portion of the Unit can be made tenantable, as determined by an engineer selected by the Board of Directors, the award for the taking of a portion of the Unit shall be used for the following purposes in the order stated and the following changes shall be effected in the Condominium: , (a) Restoration of Unit. The Unit shall be made tenantable. If the cost of the restoration exceeds the amount of the award, the additional funds required shall be assessed against the Owner of the Unit. (b) Distribution of Surplus. The balance of the award, if any, shall be distributed to the Owner of the Unit and to each mortgagee of the Unit, the remittance being made payable jointly to the Owner and mortgagees. (c) Adiustment of Shares in Common Elements. If the number of Units in the Condominium is reduced by the taking, the share in the Common Elements appurtenant to all Units shall be recalculated proportionately by the Association. Section 9.5 Unit Made Untenantable. If the taking is of the entire Unit or so reduces the size of a Unit that it cannot be made tenantable, as determined by an engineer 24 , WPB 163511.3 March 3, 2006 selected by the Board of Directors, the award for the taking of the Unit shall be used for the following purposes in the order stated and the following changes shall be effected in the Condominium: (a) Pavment of Award. The award shall be paid first to all Institutional Mortgagees in an amount sufficient to pay off their mortgages due from those Units which are not tenantable; and then jointly to the Unit Owners and mortgagees of Units not tenantable in an amount equal to the fair market value of the Unit immediately prior to the taking and with credit being given for payments previously reserved for Institutional Mortgagees; and the balance, if any, to repairing and replacing the Common Elements. The Association's determination of fair market value of a Unit shall be deemed a conclusive presumption of fair market value of such Unit. (b) Addition to Common Elements. The remaining portion of the Unit, if ' any, shall become part of the Common Elements and shall be placed in condition for use by all of the Unit Owners in the manner approved by the Board of Directors; provided that if the cost of the work shall exceed the balance of the fund from the award for the taking, the work shall be approved in the manner elsewhere required for further improvement of the Common Elements. (c) Adlustment of Shares in Common Elements. The shares in the Common Elements appurtenant to the Units that continue as part of the Condominium shall be adjusted in an appropriate manner by the Association. (d) Assessments. If the amount of the award for the taking is not sufficient to pay the fair market value of the condemried Unit to the Owner and to renovate the remaining portion of the Unit for use as a part of the Common Elements, the additional funds required for those purposes shall be raised by assessments against all of the Unit Owners who will continue as Owners of Units after the changes in the Condominium effected by the taking. The assessments shall be made in proportion to the shares of those Owners in the Common Elements after the changes effected by the taking. (e) Arbitration. If the fair market value of a Unit prior to the taking cannot be determined by agreement between the Unit Owner and mortgagees of the Unit and the Association within 30 days after notice by either party, the value shall be determined by arbitration in accordance with the then existing rules of the American Arbitration Association, except that the arbitrators shall be two appraisers appointed by the American Arbitration Association who shall base their determination upon an average of their appraisals of the Unit; and a judgment of specific performance upon the decision rendered by the arbitrators may be entered in any court of competent jurisdiction. The cost of arbitration proceedings shall be assessed against all Unit Owners in proportion to the shares of the Owners in the Common Elements as they exist prior to the changes effected by the taking. Section 9.6 Taking of Common Elements. Awards for the taking of Common Elements shall be used to make the remaining portion of the Common Elements useable in the manner approved by the Board of Directors of the Association; provided, that if the cost of the work shall exceed the balance of the funds from the awards for the taking, the work shall be approved in the manner elsewhere required for further improvement of the Common Elements. 25 WPB_163511.3 March 3, 2006 The balance of the awards for the taking of Common Elements, if any, shall be distributed to the Unit Owners in the shares in which they own the Common Elements after adjustment of these shares on account of the condemnation. If there is a mortgage of a Unit, the distribution shall be paid jointly to the Owner and the mortgagees of the Unit. Section 9.7 Taking� Association Propertv. Awards for the taking of Association Property shall be used to make the remaining portion of the Association Property useable in the manner approved by the Board of Directors of the Association; provided, that if the cost of the work shall exceed the balance of the funds from the awards for the taking, the work shall be approved in the manner elsewhere required for further impr,ovement of the Association Property. The balance of the awards for the taking of Association Property, if any, shall be deposited into an Association reserve fund for future repairs to, replacement or reconstruction of Association Property. Section 9.8 Amendment of Declaration. The changes in Units, in the Common Elements and in the Ownership of the Common Elements that are effected by condemnation shall be evidenced by an amendment of the Declaration of Condominium that need be approved only by a majority of all Directors of the Association. ARTICLE 10 OW�TERSHIP AND USE RESTRICTIONS In addition to, and not in lieu of any ownership and/or use restrictions as set forth in the Master Declaration as it will continue to be amended from time to time and as such ownership and use restrictions may address the same matters set forth below and expand upon or clarify such restrictions, and in addition to and not in lieu of any use restrictions as to Association Property that may be adopted from time to time by the Association, the use of the Condominium Property shall be in accordance with the following provisions so long as the Condominium exists: Section 10.1 Units. Each Unit shall be used as a residence only, except as otherwise herein expressly provided. A Unit may only be occupied by the following persons, and such persons' families and guests: (i) the individual Unit Owner, or (ii) permitted occupants under an approved lease or sublease of the Unit (as described below), as the case may be. Occupants of an approved leased or subleased Unit must be (i) an individual lessee or sublessee and such persons' families and guests. Under no circumstances may more than one family reside in a Unit at one time. "Families" or words of similar import used herein shall be deemed to include spouse, parents, parents-in-law, brothers, sisters, children, grandchildren, unmarried couples and housekeepers. There are no further restrictions regarding occupancy of Units by children. In no event shall occupancy exceed two (2) persons per bedroom. The Board of Directors shall have the power to authorize occupancy of a Unit by persons in addition to those set forth above. Section 10.2 Entitv Ownershi�. If the purchaser or lessee of a Unit is a corporation, trust or entity other than an individual person, the person who executes the lease or 26 WPB_163511.3 March 3, 2006 contract to purchase shall be the primary occupant of the Unit unless the purchaser or lessee designates otherwise and the approval of such purchase or lease shall be conditioned upon the approval by the Condominium Association, as applicable, of the primary occupant and of all other occupants of the Condominium Unit. Such designated primary occupant shall not be changed more often than once per yeare The one year period shall begin on the date of the written approval of the primary occupant and shall end one year from and after such date. All other occupants shall be considered as either guests or lessees, as may be appropriate, who shall be subject to all use and occupancy restrictions provided in this Declarat�on and in the rules and regulations of the Association. All such approvals shall be made on forms supplied by the Association, as applicable. Section 10.3 Association Pr�ertX and Common Elements. The Association Property, Condominium Property, Common Elements and Limited Common Elements shall be used only for the purposes for which they are intended in the furnishing of services and facilities for the enjoyment of the Units. Section 10.4 Nuisances. No noxious, offensive or unlawful activity shall be carried on within the Association Property or Condominium Property nor shall anything be done therein or thereon which may be or become an annoyance to Unit Owners, their guests or invitees. No nuisance shall be permitted within the Association Property or Condominium Property nor shall any use or practice be permitted which is or becomes a source of annoyance to Unit Owners or which interferes with the peaceful use and possession thereof by the Unit Owners. Additionally, nothing shall be done or maintained on any Unit, or upon any Common Elements, Limited Common Elements, or any portion of the Association Property, which will increase the rate of insurance on the Association Property, or any Unit, or the Common Elements, Limited Common Elements or other portions of the Condominium Property, or result in the cancellation thereof. Nothing shall be done or maintained in any Unit, upon Common Elements, Limited Common Elements, or any portion of the Association Property which will be in violation of any law, ordinance, statute, regulation, or rule of any governmental authority having jurisdiction over the Association Property, Condominium Property or portion of either of the foregoing or in violation of any provision of this Declaration, the Articles or Bylaws as they may be amended from time to time or in violation of any rules and regulations which may be promulgated by the Board of Directors of the Association from time to time, as elsewhere provided herein. No waste shall be committed in any Unit, the Common Elements, the Limited Common Elements or any other portion of the Condominium Property or of the Association Property. Notwithstanding the foregoing, each Unit Owner hereby acknowledges that all activities undertaken by Developer and Developer's Affiliates and their respective lessees, licensees and designees, shall be deemed as not constituting a nuisance and such activities and the parties performing them shall be specifically exempted from this provision. Section 10.5 Sales and Leasin� (a) Sales. No conveyance of a Unit, by parties other than the Developer or Institutional Mortgagees, shall be valid unless a certificate executed and acknowledged by an officer of the Association, stating that all Assessments levied against such Unit have been paid in 27 WPB_163511.3 March 3, 2006 full, is recorded together with the instrument of conveyance. The Board of Directors shall furnish such certificate upon receipt from the Unit Owner of a request form (which will be prepared by the Association) setting forth the proposed purchaser's name, notice address and date of closing. Each new Owner receiving a conveyance from any party except the Developer shall notify the Association promptly after becoming a new Owner by delivering a copy of the deed to the Unit to the Association. (b) Leasin . Leasing of Units shall be subject to the prior written approval of the Association. All leases shall be on forms approved by the Association and shall provide that the Association shall have the right to terminate the lease upon default by the tenant in observing any of the provisions of this Declaration, the Articles of Incorporation and Bylaws of the Association, applicable rules and regulations of the Association or other applicable provisions of any agreement, document or instrument governing the Condominium. No portion of a Unit (other than an entire Unit} may be leased. Units may be leased only twice each calendar year and each lease must be for a minimum term of six (6) months. The Unit Owner and the tenant will be jointly and severally liable to the Association for any damage to Condominium and/or Association Property and to pay any claim for injury or damage to property caused by the negligence of the tenant. All leases shall require a security deposit not to exceed two months rent for potential damage to the Common Elements and Association Property, which shall be held by the Association and shall be in an amount determined by the Board of Directors in its sole discretion, from time to time. All leases shall also comply with and be subject to the provisions of the balance of Article 10 hereof. The Developer reserves the right to utilize Units as models or for such other purposes as it sees fit, including, but not limited to, the sale and leaseback of such Units. Further, Developer retains the right, so long as it holds fee simple title to any Unit, and subject to the right of the Association to approve any Unit lease, to establish a plan for leasing any Unit or Units in the Condominium, whether such Unit or Units be owned by it or not, and thereafter to administer such plan for voluntarily participating Unit Owners on such terms as Developer may provide. (c) Continuin� Liabilitv. The liability of the Unit Owner under this Declaration shall continue, notwithstanding the fact that such Owner may have leased, rented or sub-let said interest as provided herein. Every purchaser, tenant or lessee shall take subject to this Declaration, the Articles of Incorporation, the Bylaws and rules and regulation, as well as any other document or instrument governing the Condominium. (d) Gifts and Devises, etc. Any Unit Owner shall be free to convey or transfer such Owner's Unit by gift, to devise such Owner's Unit by will, or to have such Owner's Unit pass by intestacy, without restriction; provided, however, that each succeeding Unit Owner shall be bound by, and such Owner's Unit subject to, all documents and instruments governing the Condominium. Section 10.6 Sound Transmission. A Unit Owner, other than Developer, who desires to install in place of carpeting high quality padding or any hard-surface floor covering (e.g., marble, slate, ceramic tile, wood, travertine stone, porcelain, tile, ceramic tile, parquet wood) installed pursuant to this Declaration and the Rules and Regulations. No hard floor covering material shall be installed in any part of a Unit unless the Unit Owner shall also install a sound absorbent underlayment beneath it, if applicable, as determined by the Board in its 28 WPB 163511.3 March 3, 2006 absolute discretion; in the event said absorption underlayment is required by the Board, the types of materials required may include padding or a resilient sound absorbing underlayment of fiber board, cork of such kind and quality or superior to Super SAM (sound abatement mat) sound isolation material manufactured by National Applied Construction Products, Inc., or other acceptable material, in accordance with the rules and regulations promulgated by the Rules and Regulations, as amended from time to time. Such flooring must be approved by the Board prior to the installation of same. The Unit Owner, other than Developer, shall obtain written approval of the Board prior to any such installation. If the installation is made without such prior written approval, the Board may, in addition to exercising all the other remedies provided in this Declaration require the offending Unit Owner to cover all such hard-surface flooring with carpeting, or require the removal of such hard-surface flooring at the expense of the offending Unit Owner. Each Unit Owner, by acceptance of a deed or other conveyance of their Unit, hereby acknowledges and agrees that sound and impact noise transmission in a building such as within the Condominium is very diffic �e heard in another UnitO does not malce Units and/or mechanical equipment can any representation or warranty as to the level af sound or impact noise transmission between and among Units and the other portion of the Condominium Property, and each Unit Owner hereby waives and expressly releases, to the extent not prohibited by applicable law as of the date of this Declaration, any such warranty and claims for loss or damages resulting from sound or impact noise transmission. Also, the installation of any improvement or heavy object (including but not limited to mud set floors) must be submitted to and approved by the Board of Directors, and be compatible with the overall structural design of the building. The Board of Directors may require a structural engineer to review certain of the proposed improvements, with such review to be at the Unit Owner's sole expense. APPLICABLE WARRANTIES OF THE DEVELOPER, IF ANY, SHALL BE �OIDED BY VIOLATIONS OF THESE RESTRICTIONS AND REQUIREMENTS. EACH UNIT OWNER, BY ACCEPTANCE OF A DEED OR OTHER CONVEYANCE OF THEIR UNIT, AN Y ACKNOWLEDGE AND AGREE RESIDENTS, GUESTS AND INVITEES HEREB THAT SOUND AND IMPACT NOISE TRANSMISSION IN A BUILDING SUCH AS THE CONDOMINIUM IS VERY DIFFICULT TO CONTROL, AND THAT NOISES FROM NEARBY UNITS, �VIECHANICAL EQUIPMENT, THE ASSOCIATION PROPERTY AND/OR NEARBY CONDOMINIUMS OR PROPE1tTIES CAN AND WILL BE HEARD IN UNITS. THE DEVELOPER DOES NOT MAKE ANY REPRESENTATION OR WARRANTY AS TO THE LEVEL OF SOUND OR IMPACT NOISE TRANSMISSION BETWEEN AND AMONG UNITS, OTHER PORTIONS OF THE CONDOMINIUM PROPERTY, THE ASSOCIATION PROPERTY AND/OR NEARBY CONDOMINIUMS OR PRO�'E1tTIE;S AND EACH UNIT OWNER AND ALL OF SUCH UNIT OWNER'S RESIDENTS, GUESTS AND INVITEES HEREBY WAIVES AND EXPRESSLY RELEASES, TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW AS OF THE DATE OF THIS DECLARATION, ANY SUCH WARRANTY AND CLAIM FOR LOSS OR DAMAGES RESULTING FROM SOUND OR IMPACT NOISE TRANSMISSION. Section 10.7 Parkin . (a) Parking shall be permitted only in Unit garages, driveways and other designated parking areas within the Pr�p,erties. No vehicle shall be parked so as to obstruct or 29 WPB 163511.3 March 3, 2006 otherwise impede ingress or egress to any driveway or roadway. Parking in the Properties shall be restricted to private automobiles and passenger-type vans, jeeps, pick-up trucks, and sport utility vehicles, motorcycles, motor scooters (all of which are collectively referred to herein as "vehicles"). No trailer, camper, motor home or recreational vehicle shall be used as a residence, either temporarily or permanently, or parked on the P,rop.erties. No more than two (2) vehicles per unit are permitted to be kept in the driveway. No vehicle is permitted on the Prape�ties which leaks oil, brake fluid, transmission fluid or other fluids. No Unit Owner, occupant or other person shall conduct repairs or restorations on any motor vehicle, or other vehicle, or race the � engine of any vehicle, upon any portion of the �'roperties. No person shall park, store or keep on any portion of the Propertie� any large type commercial type vehicle (for example, dump truck, motor home, trailer, cement mixer truck, oil or gas truck, delivery truck), nor may any person keep any other vehicle on the Properties which is deemed to be a nuisance by the Board, including, but not limited to, any motorcycle or motor scooter, particularly where such vehicle is operated in the early morning or late evening hours. For purposes of this section, "commercial vehicles" shall mean those which are not designed and used for customary, personal/family purposes. The absence of commercial-type lettering or graphics on a vehicle shall not be dispositive of whether it is a commercial vehicle. However, any vehicle containing commercial- type lettering or graphics shall be deemed to be a commercial vehicle. Visitor parking areas may be available to Unit Owners, occupants, and their guests and invitees, on designated portions of the Common Areas. Unit Owners and occupants shall be responsible for removing their vehicles and other property from their driveways upon the issuance of a tropical storm or hurricane warning. (b) The prohibitions on parking contained in this section shall not apply to temporary parking of: (a) commercial vehicles, such as for construction use or providing pick-up and delivery and other commercial services; (b) any vehicles of tfie Declarant, or its affiliates or designees, used for construction, maintenance, repair, decorating, sales or marketing purposes; or (c) service vehicles operated in connection with the Association, or its management companies. , (c) Subject to applicable laws and ordinances, any vehicles, boat, motorcycle or trailer parking in violation of these or other restrictions contained herein or in the Declaration, may be towed by the Association in the sole expense of the owner of such vehicle. The Association shall not be liable to the owner of such vehicle for trespass, conversion or otherwise, nor shall it be guilty of any criminal act, by reason of such towing and once the notice is posted, neither its removal, nor failure of the Ownex to receive it for any reason, shall be grounds for relief of any kind. An affidavit of the person posting the aforesaid notice stating that it was properly posted shall be conclusive evidence of proper posting. Section 10.8 Pets and Animals. (a) No more than two (2) household pets (as may be defined and re- defined by the Condominium Association) shall be maintained in any Unit or any Limited , Common Element appurtenant thereto. The maximum total weight of any such household pets shall be limited to an aggregate of thirty-five (35) pounds. Notwithstanding the foregoing, the 30 WPB 163511.3 Marcl� 3, 2006 maximum total weight for any one household pet may not exceed twenty-five (25) pounds. Household pets shall not be kept, bred or maintained for any commercial purpose and shall not become a nuisance or annoyance to neighbors. Those pets which, in the sole discretion of the Condominium Association or Master Association, endanger health, safety, have the propensity for dangerous or vicious behavior (such as pit bulldogs or other similar breeds or mixed breeds), make objectionable noise, or constitute a nuisance or inconvenience to the Owners of other Units or to the owner of any other portion of the Condominium shall be removed upon request of the Condominium Association, Board or the Master Association. Unit Owners must pick up all solid wastes of their pets and dispose of such wastes appropriately. All pets (including cats) must be kept on a leash of a length that affords reasonable control over the pet at all times, or must be carried, when outside the Unit. No pet may be kept on a balcony or terrace when its owner is not in the Unit. Without limiting the generality of the Declaration of Condominium, any violation of the provisions of this restriction shall entitle the Condominium Association to all of its rights and remedies, including, but not limited to, the right to fine Unit Owners (as provided in any applicable rules and regulations) and/or to require any pet to be permanently removed from the Condominium Property and Association Property. Compliance with this Rule shall not necessarily establish compliance with rules prohibiting nuisances. (b) Obnoxious animals, fowl or reptiles shall not be kept or permitted to be kept in any Unit. The determination of what is or what may be an obnoxious animal, fowl or reptile shall be determined by the Board of Directors, in their sole discretion. (c) Unit Owners maintaining pets on the Association Property or Condominium Property, or whose families, guests, staff, invitees or tenants bring any animal upon the Association Property or Condominium Property, shall be responsible for, and bear the expense of, any damage to persons or property resulting therefrom. Neither the Board nor the Association shall be liable for any personal injury, death or property damage resulting from a violation of any of the foregoing and any occupant of a Unit committing such a violation shall fully indemnify and hold harmless the Board of Directors, the Developer, each Unit Owner and the Association in such regard. Section 10.9 Extended Vacation and Absences In the event a Unit will be unoccupied for an extended period, in addition to the obligations of Owners and notices to be provided to the Master Association as provided in the Master Declaration, the Unit Owner must also notify the Association of such absence and provide to the Association the name and contact information of the Unit Owner's designee who has a key to the Unit. Under no circumstances shall the Association have any responsibility of any nature relating to any unoccupied Unit: Section 10.10 Dampness and Humiditv Miti a�. No Unit Owner shall install, within his or her Unit, or upon the Common Elements or Association Property, non-breathable wall-coverings or low-permeance paints. Additionally, any and all built-in casework, furniture, and or shelving in a Unit must be installed over floor coverings to allow air space and air movement and shall not be installed with backboards flush against any gypsum board wall. Additionally, all Unit Owners, whether or not occupying the Unit, shall periodically run the air conditioning system to maintain the Unit temperature, whether or not occupied, at 78°F, to minimize humidity in the Unit. While the foregoing are intended to minimize the potential development of molds, fungi, mildew and other mycotoxins, each Owner understands and agrees 31 WPB 163511.3 March 3, 2006 that there is no method for completely eliminating the development of molds or mycotoxins. The Developer does not make any representations or warranties regarding the existence or development of molds or mycotoxins and each Owner shall be deemed to waive and expressly release any such warranty and claim for loss or damages resulting from the existence and/or development of same. In furtherance of the foregoing, in the event that the Association reasonably believes that the provisions of this Section 10.10 are not being complied with, then, the Association shall have the right (but not the obligation) to enter the Unit (without requiring the consent of the Owner or any other party) to turn on the air conditioning in an effort to cause the temperature of the Unit to be maintained as required hereby (with all Utility consumption costs to be paid and assumed by the Unit Owner). Section 10.11 Antennas, Satellite _ Dishes. No Unit Owner may install any antenna, satellite dish or other transmitting or receiving apparatus upon his or her Unit (and/or areas appurtenant thereto), without the prior written consent of the Board of Directors, and then only to the extent permitted by applicable law. Section 10.12 F1a�D�isplav. Any Unit Owner may display one (1) portable, removable United States flag in a respectful way and, on Armed Forces Day, Memorial Day, Flag Day, Independence Day and Veterans Day, may display in a respectful way portable, removal official flags, not larger than 4-1/2 feet by 6 feet, that represent the United States Army, Navy, Air Force, Marine Corp or Coast Guard. Section 10.13 Si�ns. This Section 10.13 shall not apply in any manner to the Developer. Except as provided for herein or by applicable law, no sign, banner, poster, flag, notice or advertisement shall be displayed, inscribed or exposed on or at any window or any part of a Unit that is within public view or any part of the Condominium. The approval of any signs and posters, including, without limitation, name and address signs, shall be upon such conditions as may, from time to time, be determined by the Association and may be arbitrarily withheld. In addition, the Board of Directors, on behalf of the Association, shall have the right to erect reasonable and appropriate signs on any portion of the Common Elements and/or Association Property. Section 10.14 Rules and Re�ulations. Reasonable rules and regulations concerning the use of the Condominium Property and the Association Property may be made and amended from time to time by a majority vote of the Board. The Board shall have the power to grant variances to the rules and regulations from time to time. Copies of such regulations and amendments thereto shall be furnished by the Association to all Unit Owners and residents of the Condominium upon request. Section 10.15 Proviso. For so long as Developer holds any Unit in this or any other condominium governed by the Association for sale in the ordinary course of business, neither Unit Owners nor the Association nor the use of the Association Property or the Condominium Property shall interfere with the completion of the proposed improvements and the sale and marketing of Units. Developer and/or entities in which Developer has an ownership interest may make such use of the unsold Units and Common Elements, Condominium Property and Association Property as may facilitate such completion and sale, including, but not limited to, maintaining a sales office, showing the Condominium Property, Association Property and 32 WPB_163511.3 March 3, 2006 displaying signs and other marketing activities on the Condominium Property and/or Association Property. Further, Developer retains the right, so long as it holds any Unit for sale in the ordinary course of business, and subject to the right of the Association to approve any Unit lease, to establish a plan for leasing any Unit or Units in the Condominium, whether such Unit or Units be owned by it or not, and thereafter to administer such plan for voluntarily participating Unit Owners on such terms as Developer may provide. ARTICLE 11 COMPLIANCE AND DEFAULT Each Unit Owner shall be governed by and shall comply with the terms of the Declaration of Condominium, the Articles of Incorporation and Bylaws of the Association, and any and all rules and regulations adopted pursuant thereto, as they may be amended from time to time. Failure of the Unit Owner to comply therewith shall entitle the Association or other Unit Owners to the following relief in addition to the remedies provided by the Condominium Act: Section 11.1 Remedies. The Association shall be entitled to all rights and remedies provided by this Declaration of Condominium, the Articles of Incorporation, the Bylaws, any and all rules and regulations adopted pursuant thereto, the Condominium Act and/or Florida law. Section 11.2 Costs and Attorneys' Fees. In any proceeding arising because of an alleged failure of a Unit Owner to comply with the terms of the Declaration, the Articles of Incorporation and Bylaws of the Association, and any and all rules and regulations adopted pursuant thereto, as they may be amended from time to time, the prevailing party shall be entitled to recover the costs of the proceeding and reasonable attorneys' and legal assistant's fees (at all pre-trial, trial, appellate and post judgment proceedings). Section 11.3 No Waiver of Rights. The failure of the Association or any Unit Owner to enforce any covenant, restriction or other provision of the Condominium Act, this Declaration, the Articles of Incorporation and Bylaws of the Association, or the rules and regulations adopted pursuant thereto, shall not constitute a waiver of the right to do so thereafter. ARTICLE 12 ASSESSMENTS• LIABILITY. LIEN AND ENFORCEMENT The Association has been granted the right to make, levy and collect Assessments against the Owners of all Units and said Units to provide the funds necessary for proper operation and management of the Condominium, including, but not limited to, the operation, maintenance, repair or replacement of the Common Elements. The following provisions shall govern the making, levying and collecting of Association Assessments and the payment of the costs and expenses of operating and managing the Condominium. 33 WPB_163511.3 March 3, 2006 Section 12.1 Determination of Assessments. Assessments by the Association against each Owner of a Unit and his Unit shall be the percentage share of the total Assessments to be made against all Owners in this Condominium as is set forth in the Schedule attached hereto and made a part hereof as Exhibit "D". Assessments for the operation, maintenance, repair and/or replacement of the Association Property, and any other Association Common Expenses, shall be the fractional share of the total assessments to be made against all members of the Association and the units owned by the members, including without limitation, Unit Owners and Units in this Condominium, the numerator of which is one (1) and the denominator of which is the total number of units in all condominiums operated by the Association at the time such assessment is levied by the Board. Should the Association become the owner of any unit(s) in this or any other condominium governed by the Association, the Assessment which would otherwise be due and payable to the Association by the owner(s) of such unit(s) shall be apportioned and the Assessments therefor levied ratably as follows: to the extent such Assessment is for payment of common expenses of the condominium in which the unit is located, such Assessment shall be apportioned and levied ratably among the owners of all other units in the condominium; and to the extent such Assessment is for payment of Association Common Expenses, such Assessment shall be apportioned and levied ratably among the owners of all units in all condominiums governed by the Association, which are not owned by the Association, based on their membership interests in the Association. Unit Owners, future owners and users will share all expenses incurred by the Association in operating, maintaining, repairing, replacing and insuring the Association Property (including reserves for deferred maintenance and capital replacement, if not waived in accordance with the Florida Condominium Act). Section 12.2 Time for Pa The Assessment levied against the Owner of each Unit and his Unit in this Condominium shall be payable in quarterly, monthly, or such other installments and at such time as shall from time to time be fixed by the Board. Section 12.3 Annual Bud�et. The Board shall, in accordance with the Bylaws of the Association, establish, to the extent necessary, annual budgets in advance for each fiscal year, which shall correspond to the calendar year, which budgets shall estimate all expenses for the forthcoming year required for the proper operation, management and maintenance of the Condominium and the Association Property, together with, to the extent required by law or when deemed necessary or advisable by the Board, a reasonable allowance for reserves, and shall estimate all income to be collected during the year. Upon adoption of each such annual budget by the Board, copies thereof shall be delivered to each Unit Owner. All unit owners in each condominium shall receive a copy of the portion of the budget applicable to all members of the Association, together with the portion of the budget applicable to that particular condominium. The Assessments and the Consumptive Use Fees, if any, more particularly described in Section 12.14 hereof, ("Use Fees"), respectively, for the year shall be based upon such budgets; provided, that failure to deliver a copy of the budgets to any unit owner in the Association shall not affect the liability of such owner for such Assessment or use fee. Should the Board at any time, and from time to time, determine, in the sole discretion of the Board, that the Assessments or Use Fees levied are or may prove to be insufficient to pay the costs of operation and management of the Condominium, or the Association Property, the Board shall have the authority to levy such additional Assessments or Use Fees as it shall deem necessary. If such 34 WPB 163511.3 March 3, 2006 additional Assessments or Use Fees are levied, written notice describing the specific purpose or purposes of the Assessment or Use Fees will be sent or delivered to each unit owner subject to such Assessments. The funds collected pursuant to such additional Assessments or Use Fees shall be used only for the specific purpose or purposes set forth in such notice, or returned to the unit owners. However, upon the completion of such specific purpose or purposes, any excess funds shall be considered Association Common Surplus or Common Surplus, as applicable. Section 12.4 Special Assessments. Subject to the qualification that any Special Assessment which is solely for the benefit of this Condominium and/or any other condominium governed by the Association, shall be assessed against and paid by only those owners of units in the applicable condominium, the Association, through its Board of Directors, shall have the power and authority, from time to time, to levy and collect Special Assessments from each Unit Owner for the following purposes: the acquisition of real or personal property by the Association; payment, in whole or in part, of the cost of construction of capital improvements to the Condominium Property and/or the Association Property, if any, the cost of construction, reconstruction, unexpected repair or replacement of a capital improvement, including the necessary fixtures and personal property related thereto; the cost of maintenance or repair of any property which the Association is ohligated to maintain hereunder, including without limitation, Common Elements; Common Expenses and/or Association Common Expenses, if funds are not otherwise available therefor from Assessments or reserves; the expense of indemnification of each director and officer of the Association; and such other purposes deemed appropriate by the Board of Directors. All notices of Special Assessments from the Association to Owners shall designate the amount thereof and the date when due. All Special Assessments shall be levied on the same basis as Assessments described in Section 12.1 of this Declaration, and shall be collectable in such manner as the Board of Directors shall determine. The funds collected pursuant to a Special Assessment shall be used only for the specific purpose or purposes set forth in such notice. However, upon completion of such specific purpose or purposes, and subject to the qualification set forth in this Section 12.4, any excess funds will be considered Association Common Surplus or Common Surplus as applicable, or may, at the discretion of the Board, be applied as a credit towards future Assessments. Section 12.5 Reserve Funds. Prior to turnover of control of the Association by the Developer to Unit Owners other than the Developer, the Developer may vote to waive the reserves for this Condominium only for the first two (2) years of the operation of this Condominium by the Association, after which time reserves may only be waived or reduced upon the vote of a majority of all nondeveloper voting interests in this Condominium, voting in person or by limited proxy at a duly called meeting of the Association. If a meeting of the Unit Owners has been called to determine to provide no reserves or reserves less adequate than required, and such result is not attained or a quorum is not attained, the reserves as included in the budget shall go into effect. Unless waived in accordance with applicable law, the Board, in establishing each annual budget, shall include therein sums to be collected and maintained as reserves for capital expenditures and deferred maintenance for Common Elements and personal property held for the joint use and benefit of the Owners of all Units, as required by Section 718.112, Florida Statutes. Prior to turnover of control of the Association by the Developer to Unit Owners other than the Developer pursuant to Section 718.301, Florida Statutes, the 35 WPB_163511.3 March 3, 2006 developer-controlled Association shall not vote to use reserves for purposes other than that for which they were intended without tke approval of a majority of all non-developer voting interests, voting in person or by limited proxy at a duly called meeting of the Association. Section 12.6 Contin�v Funds. In addition to reserves established pursuant to Section 12.5 hereof, the Board, when establishing each annual budget may, when deemed necessary or desirable, include therein a sum or sums to be collected and maintained as contingency funds to provide a measure of financial stability during periods of special stress when such sums may be used to meet deficiencies from time to time existing as a result of delinquent payment of Assessments by Owners of Units, as a result of emergencies or for other reason placing financial stress upon the Association. The annual amount allocated to such contingency funds and collected therefor, except as required by law, shall not exceed twenty-five percent (25%) of the current annual Assessment levied against the Owners of all Units. Upon accrual in the contingency funds of an amount equal to twenty-five percent (25%) of the current annual Assessment, unless and except to the extent required by law, no further payments shall be collected from the Owners of Units as a contribution to such contingency funds, unless they shall be reduced below the twenty-five percent (25%) level, in which event, the annual Assessment against each Owner and/or Unit may be increased to restore the contingency funds to an amount which will equal twenty-five percent (25%) of the current annual amount of said Assessment. The Unit Owners may call a special meeting of the Association or the Unit Owners may raise issues pertaining to the contingency funds at a general meeting of the Association as provided for in the Bylaws. Upon the affirmative vote of a majority of the Unit Owners, the Association may elect to reduce the levels of the contingency funds below those stated above. Section 12.7 Use of Association Funds. All monies collected by the Association shall be treated as the separate property of the Association. Such monies may be applied by the Association to the payment of any expense of operating and managing the Condominium or the proper undertaking of all acts and duties imposed upon the Association by virtue of this Declaration, the Articles of Incorporation and Bylaws. All the monies for annual Assessments paid to the Association by any Unit Owner may be commingled with monies paid to the Association by other Unit Owners. All funds and other assets of the Association, and any increments thereto or profits derived therefrom or from the leasing or use of Common Elements or the Association Property, including, without limitation, Common Surplus and Association Common Surplus, shall be held for the benefit of the members of the Association. No member of the Association shall have the right to assign, hypothecate, pledge or in any manner transfer or encumber his membership interest therein, except as an appurtenance to his Unit. Section 12.8 Delinquency or Default. The payment of any Assessment or installment thereof due to the Association shall be in default if not paid to the Association on or before the date due. When in default, the delinquent Assessments or installments thereof shall bear interest from the date due at the highest rate permitted by law until the same, and all interest due thereon, has been paid in full. In addition, when the payment of Assessments is in default, then upon recording of a claim of lien therefor, the Association shall have the right to accelerate future Assessments which would not otherwise be due and payable. Further, each Owner of any Unit by acceptance of a deed therefor or other conveyance thereof, acknowledges that if the Unit Owner remains in possession of the Unit after 36 WPB_163511.3 March 3, 2006 a foreclosure judgment has been entered, the court, in its discretion, may require the Unit Owner to pay a reasonable rental for the Unit. If the Unit is rented or leased during the pendency of the foreclosure action, the Association is entitled to the appointment of a receiver to collect the rent. The expenses of the receiver shall be paid by the party which does not prevail in the foreclosure action. Section 12.9 Personal Liabilitv of Unit Owner. The Owner(s) of each Unit shall be personally liable, jointly and severally, as the case may be, to the Association for the payment of all Assessments, regular or special, interest on delinquent Assessments or installments thereof as above provided, and for all costs of collecting the Assessments and interest thereon, including reasonable attorneys' and legal assistants' fees (at all pretrial, trial, appellate and post judgment proceedings), whether suit be brought or not, levied or otherwise coming due while such person(s) or entity own(s) a Unit. Section 12.10 Liability Not Subject to Waiver. No Owner of a Unit in this Condominium and all other condominiums governed by the Association may exempt himself from liability for any Assessment levied against such Owner and his Unit by waiver of the use or enjoyment of any of the Association Property, Common Elements appurtenant to that Unit Owner's Unit, abandonment of the Unit, or in any other manner. Section 12.11 Lien for Assessment. The Association is hereby granted a lien upon each Unit and its appurtenant undivided interest in the Common Elements, which lien shall and does secure the monies due for all: unpaid assessments which are due and which may accrue subsequent to the recording of the claim of lien and prior to the entry of a certificate of title, as well as interest and all reasonable costs and attorney's fees incurred by the association incident to the collection process. The lien granted to the Association may be established and foreclosed in the Circuit Court in and for the County. Section 12.12 Recording and Priority of Lien. The lien of the Association shall be effective from and relate back to the recording in the Public Records of the County of this Declaration. However, as to first mortgages of record, the lien is effective from and after the recording of a claim of lien as hereinafter described. The Association shall file a claim of lien stating the Unit encumbered thereby, the name of the record Owner, the name and address of the Association, the amount due to the Association, and the date such amount was due. The claim of lien shall secure all Assessments, plus interest, costs, attorneys' and legal assistants' fees, and which may accrue subsequent to the recording of the claim of lien and prior to the entry of a final judgment of foreclosure. Such claim of lien shall be signed by an officer or agent of the Association. Upon full payment of all sums secured by such claim of lien, the same shall be satisfied of record. The lien of the Association shall be subordinate in the following order of priority to (a) ad valorem tax liens; and (b) the lien of any first mortgage held by an Institutional Mortgagee, and (c) liens for Master Assessments subject, however, to the liability of such mortgagee for assessments as provided in Section 718.116 Florida Statutes. Pursuant to Section 718.120(1), Florida Statutes, ad valorem taxes, benefit taxes and special assessments by taxing authorities shall be assessed against each Unit and its appurtenant undivided interest in Common Elements and not upon the Condominium Property as a whole. Such taxes and assessments shall constitute a lien only upon the Unit and its appurtenant undivided interest in the Common Elements and not upon any other portion of the Condominium Property. 37 WPB_163511.3 March 3, 2006 Section 12.13 Effect of Foreclosure or Judicial Sale. In the event that any person, firm or corporation shall acquire title to any Unit in this or any other condominium governed by the Association and its appurtenant undivided interest in Common Elements of this or any other condominium governed by the Association, by virtue of any foreclosure or judicial sale or any transfer in lieu thereof, then such person, firm or corporation so acquiring title shall only be liable and obligated for Assessments of the Association as provided in the Condominium Act. Any Assessments as to which the party so acquiring title shall not be liable shall be absorbed and paid in the following manner: the portion of such Assessments attributable to Association Property, if any, and the Association's proportionate share of assessments due to the Master Association, if any, shall be apportioned among owners of all units governed by the Association and the portion of such Assessments attributable to the Common Expenses of this Condominium shall be apportioned among the Owners of all Units in this Condominium only, in either case, including the Owner acquiring title through foreclosure or judicial sale, as a part of the Common Expense, although nothing herein contained shall be construed as releasing the party personally liable for such delinquent Assessment from the payment thereof or the enforcement of collection of such payment by means other than foreclosure. Section 12.14 Fees for Sub-Metering of Utilities. The Association may, from time to time (but is not obligated to) collect from Unit Owners and transmit to Utilities and/or vendors for such Utilities, fees and/or costs charged by such Utilities for their services to individual Units. Such fees may appear as a line item on the Association budget as a consumptive use fee ("Consumptive Use Fee") but will not be deemed thereby to be included as part of Assessments to be paid to the Association by Unit Owners, nor shall such Consumptive Use Fees be the subject of any lien for Assessments as set forth elsewhere in this Article. The Association's only role as to such Consumptive Use Fees is to act as a collection and transmission agent. Enforcement of remedies in the event of the failure of any Unit Owner to pay such Fees is strictly between the applicable Utility and the Unit Owner. Section 12.15 Effect of Voluntarv Transfer. When the Owner of any Unit proposes to lease, sell or mortgage the same in compliance with other provisions of this Declaration, the Association, upon written request of the Owner of such Unit, shall furnish within 15 days after receipt of such written request, to the proposed lessee, purchaser or mortgagee, a statement stating all assessments and other monies which are due and payable to the Association by the Owner of such Unit with respect to the Unit. Such statement shall be executed by any officer of the Association and any lessee, purchaser or mortgagee may rely upon such statement in concluding the proposed lease, purchase or mortgage transaction, and the Association shall be bound by such statement. In the event that a Unit is to be leased, sold or mortgaged at the time when payment of any Assessment against the Unit Owner and the Unit which is due to the Association is in default (whether or not a claim of lien has been recorded by the Association) or if at such time payment of an assessment against the Unit Owner and the Unit is due to the Master Association, then the rent, sale proceeds or mortgage proceeds, as the case may be, shall be applied by the lessee, purchaser or mortgagee in the following order: (a) first to the payment of any delinquent assessments or installment thereof due to the Master Association; (b) second to payment of any then delinquent Assessment or installment thereof due to the Association; (c) ; 38 WPB_163511.3 March 3, 2006 third, payment of the balance of such rent, proceeds of sale or mortgage to the Owner of the Unit responsible for payment of such delinquent assessment. In any transfer of title of a Unit, the grantee shall be jointly and severally liable with the grantor for a11 unpaid Assessments against the grantor made prior to the time of such transfer of title, without prejudice to the rights of the grantee to recover from the grantor the amounts paid by the grantee therefor. In addition, if the amount due is not paid by the grantor, the grantee shall pay the amount owed to the Association within thirty (30) days after transfer of title. Further terms governing transfer of Units are set forth in Section 10.5 hereo£ Section 12.16 No Election of Remedies. All rights, remedies and privileges granted to the Association or any Unit Owner pursuant to any of the Condominium Documents, shall be deemed to be cumulative, and the exercise of any one or more shall not be deemed to constitute an election of remedies, nor shall it preclude the party thus exercising the same from exercising such other and additional rights, remedies, or privileges as may be available to such party at law or in equity. Section 12.17 Additional Assessments. The Assessments provided for in this Article shall be in addition to, and not in lieu of, all other assessments which may be levied by the Master Association and/or any other association of which the Unit Owner may be a member. At the option of the Master Association or such other association, and as provided in their respective declarations, articles of incorporation, bylaws or rules and regulations, such association may collect assessments due to such association from Unit Owners through the Association. ARTICLE 13 REGISTRY OF OWNERS AND INSTITUTIONAL MORTGAGEES Section 13.1 Re istr . The Association shall at all times maintain a registry of the names of the Owners and Institutional Mortgagees of all Units. Upon the transfer of title to any Unit, the transferee shall notify the Association in writing of his interest in such Unit together with recording information identifying the instrument by which such transferee acquired his interest in the Unit. The Owner of each Unit encumbered by an Institutional Mortgage shall notify the Association of the name and address of the Institutional Mortgagee, the amount of such mortgage, or mortgages, and the recording information identifying the same. The holder of any Institutional Mortgage encumbering a Unit may notify the Association of any such mortgage(s), and upon receipt of such notice, the Association shall register in its records all pertinent information pertaining to the same. Section 13.2 Notices to Lenders. Upon written request to the Association, identifying the name and address of the Institutional Mortgagee of an Institutional Mortgage encumbering a Unit and the Unit number or address, any such Institutional Mortgagee will be entitled to timely written notice of: 39 WPB_163511.3 Marcli 3, 2006 (a) any condemnation loss or casualty loss which affects a material portion of the Condominium or any Unit on which there is a first mortgage held, insured, or guaranteed by such Institutional Mortgagee, as applicable; (b) any delinquency in the payment of Assessments or charges owed by an owner of a Unit subject to a first mortgage held by such Institutional Mortgagee which remains uncured for a period of sixty (60) days; (c) any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; and (d) any proposed action which would require the consent of a specified percentage of mortgage holders. ARTICLE 14 ALTERATIONS AND IMPROVEMENTS Any alterations and improvements to the Association Property, the Condominium Property or any portion of either shall comply with the following: Section 14.1 Architectural Control. The Association and every person or entity who acquires title to a Unit acknowledges that the Master Association has the authority to establish an Architectural Development and Review Board (hereinafter collectively referred to as the "Architectural Review Board" or the "ARB") which is responsible for reviewing and approving all plans and specifications for new construction and modifications of existing buildings in the Community in which the Association Property and the Condominium Property are each a part. In the event of any conflict between the provisions of this Article 14 and the provisions of the Master Declaration concerning architectural review and approval, the provisions of the Master Declaration shall govern and supersede. The Association and every person or entity who acquires title to a Unit further acknowledges that except as otherwise expressly authorized herein, no improvements, modifications, alterations or changes may be made, in any manner to the Association Property or to the Units, the Limited Common Elements, or any Common Elements on the Condominium Property subject to this Declaration without the prior written approval of the ARB and the Board of Directors of the Association (or if so designated by the Board of Directors, a committee appointed by the Board of Directors in accordance with the Bylaws). In the event of any conflicting decisions between the Association and the ARB regarding approval or disapproval of proposed new construction, alteration or improvement, the decisions of the ARB, whether approval or disapproval, shall govern and supersede and shall be final. All construction on the Association Property and the Condominium Property with the exception of construction by Developer, shall be subject to such rules, regulations, design and construction standards, and setback and building requirements, as may be promulgated by the Board of Directors of the Association and/or the ARB from time to time. 40 WPB_163511.3 Marcli 3, 2006 Section 14.2 Alterations by Unit Owners Other than Developer. No Unit Owner other than Developer shall, without first having obtained the written consent of the Board of Directors of the Association, the ARB, and all required governmental approvals and permits, make any alteration, replacement, decoration, enclosure, or addition to the Association Property Common Elements (including any Limited Common Element appurtenant to a Unit) or any exterior portion of the Building (whether a part of a Unit or the Common Elements), except for replacement of screening or glass in a window or glass door contained in a Unit with screening or glass similar to the material that is being replaced. Without limiting the generality of the foregoing, and as examples only, no Unit Owner other than Developer, without having first obtained the prior consent of the Board of Directors and the ARB shall: (a) change, modify or remove, in whole or in part, replace, reroute, or otherwise affect any column, wall or partition, pipe, duct, wire or conduit, or obstruct any easement herein provided for; (b) change, modify or otherwise affect in any manner any mechanical, electrical, plumbing, telecommunication, architectural or structural system or element of any Building; (c) remove, or change the style, pattern, material, texture or outside color of any door, window, screen, exterior ceiling fan, fixture or equipment in or on an exterior of a Unit or Building wall (including without limitation, any wall situated between a balcony or patio and the interior of the Unit); (d) cover, from the inside or outside, the glass or other transparent or translucent material in any exterior door or window, whether located in a wall adjacent to a balcony or patio or otherwise, with, or apply or affix thereto, any material or substance which shall render the same opaque or change the exterior color thereof, except interior draperies, curtains, shades or shutters which are lined, backed, covered or painted on the side visible from the exterior with a neutral color or material, any and all of which shall conform to building standards from time to time promulgated by the Board of Directors; (e) affix to or over any exterior door or window, whether located in a wall adjacent to a balcony or patio, or elsewhere, or otherwise install on the exterior of any Unit or Building, any storm or hurricane shutter which has not been approved by the Association or any awning or any protective or decorative panel, paneling, trim, enclosure, fixture, or appliance; or (� otherwise change, modify or alter (i) the exterior of any Unit, (ii) the flooring, ceiling or walls (if any) of any balcony or patio, (iii) the configuration of the space located within any balcony or patio, or (iv) otherwise modify any balcony or patio so that it thereby differs in appearance from the balconies or patios of any other Units of the same type. (g) make any additions, alterations or improvements to the Life Safety Systems, and/or to any other portion of the Condominium Property which may impair the Life Safety Systems OT aCGeSS to the Life Safety Systems No lock, chain or other device or combination thereof shall be installed or maintained at any time on or in connection with any door on which panie hardware or fire exit hardware is required. Stairwell identification and 41 - � WPB_163511.3 March 3, 2006 emergency signage shall not be altered or removed by any Unit Owner whatsoever. No barrier including, but not limited to personalty, shall impede the free movement of ingress and egress to and from all emergency ingress and egress passageways. Developer will not be required to obtain any of the consents referred to in this Article 14 before altering any Unit which it owns. Section 14.3 Rec�uests for Approval. All requests by Unit Owners for approval of alterations or additions shall be submitted to the Board of Directors in writing together with (i) three (3) copies of such plans and specifications and (ii) such reasonable fees as from time to time may be fixed by the Board of Directors to defray the expenses of reviewing such requests. The Board of Directors of the Association shall have a period of thirty (30) days after the date of its receipt of any such request within which to approve or disapprove the same in its sole discretion. Approval by the Board may include a consideration of aesthetics and any other matters as the Board may decide. In no manner shall such approval be interpreted as a representation by the Board that such plans are in accordance with building, zoning or any other applicable laws. Any Unit Owner making an addition, alteration, or improvement shall be deeined to have agreed to indemnify and hold the Association and all other Unit Owners harmless from all damages and liability which results from such addition, alteration or improvement. In the event any Unit Owner performs any alterations, improvements, or additions without having obtained the consent of the Board of Directors, the Association shall have all remedies provided by the Condominium Act and the right to seek injunctive relie£ In the event the Board of Directors establishes the ARB, then all references to the Board in this Section 14.3 shall be deemed to mean such Board designated committee. In the event any Unit Owner performs any alterations, improvements or additions without having obtained the consent of the ARB, the Master Association remedies shall be as set forth in the Master Declaration and as provided by law. Section 14.4 Ownership of Conti�uous Units. Any Unit Owner owning two or more horizontally or vertically contiguous Units may create openings in or remove or alter the boundary walls or slabs between such Units in such a manner as not to interfere with or encroach upon any other Units or Common Elements; provided that any such construction by the Unit Owners shall be upon the following terms and conditions: (a) The Unit Owner and all record owners of liens on the Unit shall join in the execution of an amendment to this Declaration, which amendment must also be approved by a majority of total voting interests of the Association; (b) the Unit Owner agrees to indemnify and hold harmless the Association from and against any and all costs, expenses, damages or liabilities (including any damages or liabilities arising from damage to property or death or injury to persons) which the Association may suffer or to which the Association may be exposed as a result of the construction and maintenance of such openings in or alterations to the boundary walls or slabs; (c) prior to the vesting of title to any of such contiguous Units in an Owner who is not vested with title to all such contiguous Units, the Unit Owner will restore such boundary walls or slabs to the location and condition existing immediately prior to any opening, 42 WPB_163511.3 Maroh 3, 2006 removal or alteration of the boundary walls or slabs. If the Unit Owner fails to perform such restoration, the Association may perform the restoration and charge the affected Units and Unit Owner for the cost thereof. Section 14.5 Alterations bv the Association. (a) The Association shall not make any alteration of, addition to, or expansion of the Common Elements without the prior written approval of the ARB nor shall the Association make any such alteration of, addition to or expansion of the Common Elements which requires the expenditure of more than $25,000.00, unless the alteration, addition, or expansion has also been approved by the Owners of Units to which at least seventy-five percent (75%) of the Common Elements are appurtenant. The cost of all such alterations, improvements and/or additions shall be a Common Expense of the Condominium. (b) The Association shall not make any alteration of, addition to or expansion of the Association Property without the prior written approval of the ARB nor shall the Association make any such alteration of, addition to or expansion of the Association Property which requires the expenditure of more than $50,000.00, unless the alteration, addition, or expansion has also been approved by the owners of at least seventy-five percent (75%) of the units governed by the Association, including without limitation the Unit Owners within this Condominium. The cost of all such alterations, improvements and/or additions shall be an Association Common Expense. Section 14.6 Additions Alterations or Improvements bv Develober. The foregoing restrictions of this Article 14 shall not apply to Developer owned Units. The Developer shall have the additional right, without the consent or approval of the ARB, the Board of Directors or other Unit Owners, to (i) make alterations, additions or improvements, structural and non-structural, interior and exterior, ordinary and extraordinary, in, to and upon any Unit owned by it and Limited Common Elements appurtenant thereto (including, without limitation, the removal of walls, floors, ceilings and other structural portions of the Building, and the combining of all or any part of any number of Units that are adjacent to each other into one Unit); and (ii) expand, alter or add to all or any part of the recreational facilities. Any amendment to this Declaration (and any zoning or other governmental approvals required in connection therewith) required by a change made by the Developer pursuant to this Section 14.6 shall not be deemed a material amendment, and no such amendment shall be deemed to be a material altering of this Declaration in a manner that is adverse to Unit Owners or prospective Unit Owners (contract purchasers of Units) under the Condominium Act or the rules and regulations adopted with respect thereto. In the event such an amendment changes the boundary lines between two abutting Units, such amendnnent to this Declaration shall also redistribute between the two Units involved the interest in the Common Elements and share of the Common Surplus and Common Expenses previously assigned to the two Units involved, in such a manner, that the totals of these items as reassigned to the two modi$ed Units as a whole shall equal the same totals of these items previously assigned to the two Units as a whole before such modifications. 43 WPB_163511.3 March 3, 2006 In the event the Developer by such amendment combines two or more Units to create one Unit, the interest in the Common Elements and the Common Surplus and the share of the Common Expenses previously assigned and appurtenant to the Units being combined shall be automatically reassigned to the new Unit. A combined Unit shall have the aggregate voting interests previously assigned and appurtenant to the Units being combined. If any two or more Units are so combined, they may be subsequently separated into their original Units by amendment to this Declaration. In such event, the interest in the Common Elements and the Common Surplus and the share of the Common Expenses previously assigned and appurtenant to the two or more Units shall equal the interest in the Common Elements and the Common Surplus and the share of the Common Expenses previously assigned and appurtenant to the combined Unit. Each of such separated Units shall have the same number of votes in the Association as originally assigned to them in this Declaration prior to the same being combined and subsequently separated. Any of the foregoing amendments to this Declaration shall also be in accordance with Article 16 hereof, shall be in compliance with the requirements of the Condominium Act (including, without limitation, Section 718.110(4) thereof, if applicable) and shall be executed with the formality required by law for the execution of a deed, shall be signed by the Association (if so required) and the Developer and the mortgagee(s) holding a mortgage on the Unit(s) affected, shall be filed and recorded in the Public Records of Palm Beach County, Florida (unless otherwise required by the Condominium Act), and shall be effective as provided in said Article 16. Such amendment to this Declaration shall have as an Exhibit thereto an amendment to Exhibits "B" and "C" hereto, as applicable. Section 14.7 Compliance with Laws and Re�ulations; Warranties. All additions, alterations and approvals shall be made in compliance with all applicable governmental laws and regulations and all zoning and building code regulations. All work shall be designed and performed by properly licensed architects and contractors, and in such a manner that the structural integrity of any Building is not adversely affected. Developer expressly disclaims any liability or responsibility for any reconstruction, repair, or alteration to any Building, Common Elements or other Condominium Property which may be required by any governmental entity. ARTICLE 15 TERMINATION AND MERGER The Condominium may be terminated in the following manner in addition to the manner provided by the Condominium Act. Section 15.1 Destruction. In the event it is determined in the manner provided in Article 8 that the improvements shall not be reconstructed because of total destruction, major damage or condemnation, the Condominium plan of ownership will be thereby terminated without agreement. 44 WPB_163511.3 March 3, 2006 Section 15.2 A�reement. The Condominium may be terminated by the approval in writing of (i) all of the Owners of Units in the Condominium; and (ii) all record owners of mortgages upon Units therein owned by Institutional Mortgagees; and together with (iii) other mortgagees approved by the Association. If the proposed termination is submitted to a meeting of the members of the Association, the notice of which meeting gives notice of the proposed termination, and if the approval of the Owners of Units to which not less than eighty percent (80%} of the Common Elements are appurtenant, and of the record Owners of all mortgages upon Units in the Condominium owned by the Association, are obtained not later than thirty (30) days from the date of such meeting, then the approving Owners, through the Association, shall have an option to buy all of the Units of the other Owners for the period ending on the sixtieth (60th) day from the date of such meeting. The vote of those Owners approving such termination shall be irrevocable until the expiration of the option, and if the option is exercised, the vote shall be irrevocable. Any person voting against termination may, within fifteen (15) days from the date the vote was taken, change his vote to be in favor of such termination. Such option shall be upon the following terms: (a) Exercise of Option. The option shall be exercised by delivery or mailing by certified mail to each of the record Owners of the Units to be purchased of an agreement to purchase signed by the record Owners of Units who will participate in the purchase. Such agreement shall indicate which Units will be purchased by each participating Owner and shall agree to purchase all of the Units owned by Owners not approving the termination, but the agreement shall effect a separate contract between each seller and his purchaser. (b) Price. The sale price for each Unit shall be the fair market value • determined by agreement between the seller and purchaser within thirty (30) days from the delivery or mailing of such agreement, and in the absence of agreement as to price, it shall be determined by arbitration in accordance with the then existing rules of the American Arbitration Association, except that the arbitrators shall be two appraisers appointed by the American Arbitration Association who shall base their determination upon an average of their appraisals of the Unit; and a judgment of specific performance of the sale upon the award rendered by the arbitrators may be entered in any court of competent jurisdiction. The expense of the arbitration shall be paid by the purchaser. (c) Payment. The purchase price shall be paid in cash. (d) Closin . The sale shall be closed within thirty (30) days following the determination of the sale price. Section 15.3 Certificate. The termination of the Condominium in either of the foregoing manners shall be evidenced by a certificate of the Association executed by its Piesident and Secretary certifying as to facts effecting the termination, which certificate shall become effective upon being recorded in the Public Records of the County. Section 15.4 Shares of Owners After Termination. After termination of the Condominium the Unit Owners shall own the Condominium Property and all assets of the Association as tenants in common in undivided shares, and their respective mortgagees and 45 WPB_163511.3 Marcli 3, 2006 lienors shall have mortgages and liens upon the respective undivided shares of the Unit Owners. Such undivided shares of the Unit Owners shall be the same as the undivided shares in the Common Elements appurtenant to the Owners' Units prior to the termination as set forth in Exhibit "D". Section 15.5 Amendment. This Section shall not be amended without consent of the Owners of at least eighty percent (80%) of the Units and of the holders of at least eighty percent (80%) of the mortgages on Units. Section 15.6 Merger. In the event there is proposed a merger of The Preserve at Tequesta Townhomes 1 Condominium with another condominium(s), such merger may only occur with the prior approval of one hundred percent (100%) of the voting interests of all Unit Owners approving both the merger and the resulting modification of the appurtenances to the Units and changing of proportion or percentage share by which the owners of the Condominium Parcels share Common Expense and Common Surplus and upon approval of all record owners of liens on Condominium Units. In the event of such a merger, there shall be recorded a new or amended Articles of Incorporation, Declaration and Bylaws, evidencing the creation of the merged condominium, as necessary. ARTICLE 16 AMENDMENT Except as elsewhere in this Declaration or in the Condominium Act otherwise provided, this Declaration may be amended only as follows: Section 16.1 Amendment bv the Association. (a) Proposal. Amendments to this Declaration may be proposed by the Board of Directors by resolution adopted by a majority vote of the Directors present at any regular or special meeting of the Board at which a quorum is present or by the Owners of Units to which not less than twenty-five percent (25%) of the Common Elements are appurtenant, whether by vote of such Owners as members of the Association at a special or regular meeting of the members or by written instrument signed by them. Any amendment to this Declaration so proposed by the Board or members of the Association shall be transmitted to the President of the Association, or, in the absence of the President, to a Vice President or other acting chief executive officer. (b) Notice. Notice of the subject matter of the proposed annendment to this Declaration shall be included in the notice of any regular or special meeting of the Association at which such proposed amendment is to be considered. (c) Adoption. The proposed amendment may be adopted, and shall become effective, unless otherwise provided herein by and upon the affirmative vote of the Owners of a majority of the Units. Such vote may be taken at any zneeting at which a quorum is present. Owners may be present in person or by proxy as allowed by applicable law. In the alternative, any amendment so proposed may be adopted, without a formal meeting of the 46 WPB_163511.3 Marcli 3, 2006 members, by an instrument executed and acknowledged with the formalities of a deed by members owning a majority of the Units. Section 16.2 Amendment by Devel�er to Correct Errors or Omissions. For so long as Developer owns any Units in the Condominium, Developer may, without j oinder or consent of the Association or any Unit Owner or mortgagee, adopt and record an amendment to this Declaration for the purpose of correcting a defect, error or omission in or of the Declaration not materially affecting the rights of Owners, lienors or mortgagees. Section 16.3 Effective Date and Recordin� Evidence of Amendment. Any amendment to this Declaration shall be effective as to members of the Association and persons having actual knowledge of the adoption of any amendment to this Declaration, (i) as of the date of adoption or otherwise as may be specified in the resolution or instrument creating the amendment; and (ii) as to non-members of the Association without actual knowledge of an amendment to this Declaration, at the time the affected person acquires actual knowledge thereof or at the time of filing the amendment or certificate of amendment in the Public Records of the County, whichever occurs first.� The President of the Association, or, in the absence of the President, a Vice President or other acting chief executive officer of the Association, or Secretary shall cause to be filed in the Public Records of the County, the original amendment to the Declaration, if it is in the form of an instrument executed and acknowledged by Unit Owners and the holders of liens thereon, or a certificate of amendment, if it is a certification by the proper officers of the Association that such amendment was adopted by the Association at a meeting of the members. A true and correct copy of each such amendment or certificate of amendment shall be delivered, forthwith after adoption thereof, to the record Owners of all Units and to the record Owners of all liens on Units, by the President, Vice President or other acting chief executive officer of the Association, but delivery of such copies shall not be a condition precedent to the effectiveness of any such amendment. Section 16.4 Exce�tions. Notwithstanding the foregoing provisions for adoption of amendments to this Declaration or any other provisions for amendment in the Condominium Act and except as otherwise provided herein, no amendment shall: (a) change any "Condominium Parcel" (as defined in the Condominium Act); (b) discriminate against any Unit Owner or against any Unit comprising part of the Condominium Property; (c) change the share of Common Elements appurtenant to any Unit or Units or the share of any Unit Owner in the Common Surplus; or (d) increase the share of any Unit Owner(s) in the Common Expenses or Common Surplus; unless the record Owners of all affected Units join in the execution and acknowledgment of such amendment. No amendment to this Declaration shall require the joinder or consent of any owner of a lien on a Unit unless the amendment materially affects the rights or interests of such lien owner or is otherwise required by the Federal National Mortgage 47 WPB_163511.3 March 3, 2006 Association or the Federal Home Loan Mortgage Corporation. In any such event, such lien owner shall not unreasonably withhold its consent. (e) Change any provision of this Declaration regarding rights, responsibilities, or obligations as to any Association Property, Association Common Expense or Association Common Surplus unless approved by at least seventy-five percent (75%) of the owners of units governed by the Association (including the Unit Owners of this Condominium) approve of such amendment. Section 16.5 Develo�er and Declarant Consent. Notwithstanding anything to the contrary contained elsewhere in this Declaration, for so long as Developer or Developer's Affiliates and/or Declarant or Declarant's Affiliates owns one Lot (as defined in the Master Declaration), Unit or other real property in the Community, no amendment to this Declaration may be recorded in the Public Records of the County, without the written consent and joinder of Developer and/or Declarant, as applicable. Section 16.6 SFWMD Approval. Notwithstanding anything to the contrary in this Section, any amendment proposed to this Declaration, the Articles of Incorporation and/or Bylaws which would affect the Surface Water Management System, including environmental conservation areas, if any, shall be submitted to the SFWMD for review prior to finalization of the amendment. The SFWMD shall determine if the proposed amendment will require a modification of the environmental resource or surface water management permit and if a modification is necessary, the District shall advise the Association. If a permit modification is necessary, the modification must be approved by the SFWMD prior to the amendment of this Declaration, the Articles of Incorporation and/or the Bylaws. ARTICLE 17 ADDITIONAL RIGHTS OF DEVELOPER In addition to all other rights, privileges and benefits reserved to Developer in this Declaration, Developer shall also be entitled to the following rights, privileges and benefits: Section 17.1 Sales Activitv. Until such time as Developer has sold all of the Units in the Condominium, Developer is irrevocably empowered, notwithstanding anything herein to the contrary, to sell, mortgage, and/or transfer Units to any persons approved by it, free and clear of any approval rights or rights of refusal of the Association. Developer shall have the right to transact on the Condominium Property any business necessary for the offering for sale or rental of Units, including but not limited to the right to maintain models, have signs for sales or rentals and otherwise retain employees in its office, use the Common Elements to show Units, and to use any Unit or Units for Developer's sales offices. Any sales or display office, signs, fixtures or furnishings or other tangible personal property belonging to Developer shall not be considered Common Elements and shall remain in the property of Developer. In the event there are unsold Units, or Developer reacquires any Units, Developer retains the right to be the Owner thereof and to sell, mortgage and/or transfer said Units without the necessity of obtaining the 48 WPB_163511.3 Marcl� 3, 2006 approval of the Association and without the payment of any transfer, leasing, processing or other type or form of fee or charge. Section 17.2 Control of Association. When Unit Owners other than Developer own fifteen percent (15%) of the Units in the condominium(s) in the Preserve at Tequesta Townhomes that ultimately will be operated by the Association, the Unit Owners other than Developer will be entitled to elect not less than one-third (1/3) of the members of the Board of Directors of the Association. Unit Owners other than Developer shall be entitled to elect not less than a majority of the members of the Board of Directors of the Association upon the first to occur of: (a) three years after 50 percent of the Units that will be operated ultimately by the Association have been conveyed to purchasers; (b) three months after 90 percent of the Units that will be operated ultimately by the Association have been conveyed to purchasers; (c) when all the Units that will be operated ultimately by the Association have been completed, some of them have been conveyed to purchasers, and none of the others are being offered for sale by Developer in the ordinary course of business; (d) when some of the Units have been conveyed to purchasers and none of the others are being constructed or offered for sale by Developer in the ordinary course of business; or (e) seven years after recordation of this Declaration. \ Developer shall have the right to elect all members of the Board of Directors of the Association which Unit Owners other than Developer are not entitled to elect as long as Developer holds for sale in the ordinary course of business any Unit(s) in the Condominium, and Developer shall be entitled to elect not less than one (1) member of the Board of Directors of the Association as long as Developer holds for sale in the ordinary course of business at least five percent (5%) of the Units in the Condominium. Notwithstanding the foregoing, Developer shall be entitled at any time to waive in writing its rights hereunder, and thereafter to vote in elections for members of the Board of Directors of the Association in the same manner as any other Unit Owner of the Association, except for purposes of reacquiring control of the Association or selecting the majority members of the Board. Section 17.3 Additional Easements. Developer (so long as it owns any Units) and the Association each shall have the right to grant such additional utility easements or relocate any existing utility easements in any portion of the Condominium Property, and to grant access easements or relocate any existing access easements in any portion of the Condominium Property, as Developer or the Association shall deem necessary or desirable for the proper operation and maintenance of the improvements, or any portion thereof, or for the general health or welfare of the Unit Owners, or for the purpose of carrying out any provisions of this Declaration, provided that such easements or the relocation of existing easements will not prevent or unreasonably interfere with the use of the Units for dwelling purposes. 49 WPB_163511.3 March 3, 2006 Section 17.4 Construction Maintenance. Developer (including its designees, and employees) shall have the right in its sole discretion from time to time to enter the Condominium Property for the purpose of completing the construction thereof and perform construction activities thereon, provided same does not prevent or unreasonably interfere with the use or enjoyment of the Unit Owners of the Condominium Property. ARTICLE 18 ASSOCIATION PROPERTY Section 18.1 Association Propertv. Each Owner acknowledges that there may be ongoing activities by the Association and Developer, respectively in, on and about the Association Property. Such activities may include, without limitation, maintenance activities and special events undertaken by the Association and Developer. Such activities may at times result in certain levels of noise, annoyance or inconvenience to Owners. Notwithstanding the existence of such noise, inconvenience or annoyance, each Owner acknowledges the need for such maintenance, repair, replacement and reconstruction activities and special events in order to maintain and enhance the Association Property and other areas owned or controlled by the Developer and/or the Association, respectively, and to carry on the functions of the respective entities. The Association, by its joinder in this Declaration, and each Owner, by acquiring title to a Unit within the Condominium Property and The Preserve At Tequesta Townhomes, do hereby. release and hold harmless Developer and Developer's Affiliates and their respective officers, directors, employees and contractors relative to all activities that may be conducted by the Developer or Developer's Affiliates on or related to the Association Property, Condominium Property and the Community. The Association and each Owner hereby acknowledges that the activities of the Developer and/or Developer's Affiliates, respectively, shall not constitute a nuisance and shall be specifically exempted from Section 10.4 of this Declaration. ARTICLE 19 THE PRESERVE AT TEQUESTA MAINTENANCE ASSOCIATION INC. Section 19.1 The Preserve at Tequesta Maintenance Association, Inc. Disclosure. Each Owner acknowledges that ownership of property within the Community and the Condominium Property automatically causes such Owner to become a member of the Master Association which is governed by that certain Declaration of Covenants, Restrictions and Easements for The Preserve at Tequesta, recorded , 200 in the Official Records, Book , Page of the Public Records of Palm Beach County, Florida (the "Master Declaration"). Each Owner further acknowledges that the Master Association may be the owner of or otherwise responsible for the maintenance of certain improvements, including, without limitation, roadways, pedestrian paths, perimeter areas, buffer areas, entry ways and guardhouses which may be located within the Community. By virtue of becoming an Owner of property within the Community, each Owner also becomes a member of the Master Association and thereby becomes responsible for the payment of certain assessments to the Master Association. The Association may, from time to time, be the collecting agent for those 50 WPB 163511.3 March 3, 2006 assessments payable by Owners to the Master Association. Further, each Owner, by virtue of such ownership, shall be responsible for the performance of those obligations and shall abide by those covenants, regulations, rules and restrictions contained in the Master Declaration. Section 19.2 Su�premac�of Master Declaration. The Association, its Board of Directors and all committees thereof shall be subject to all superior rights and powers which have been conferred upon the Master Association pursuant to the Master Declaration, articles of incorporation and bylaws. The Association shall take no action in derogation of the rights of, or contrary to the interests of, the Master Association. ARTICLE 20 SUB-ASSOCIATIONS Section 20.1 Cumulative Effect: Conflict. The covenants, restrictions and provisions of the Master Declaration shall be cumulative with those of this Declaration, provided, however, that in the event of conflict between or among any such covenants, restrictions and provisions, or the Articles of Incorporation, Bylaws, rules and regulations, policies or practices adopted or carried out pursuant thereto and, as may be limited by Florida Statutes, as amended to the date hereof, as applicable, those of the Association shall be subject and subordinate to the Master Declaration. The foregoing priorities shall apply, but not be limited to, the. liens for assessments created in favor of the Master Association and this Association (as provided elsewhere in this Declaration and the Master Declaration). Section 20.2 Use Restrictions. Each of the Master Association and this Association shall have the power to enforce their own respective use restrictions, provided that in the event of conflict, the more stringent restrictions shall control and provided further that if the Association fails to enforce its restrictions, the Master Association shall have the absolute right, but not the obligation, to do so and to allocate the cost thereof to the Association which shall promptly pay for same or reimburse the Master Association. Section 20.3 Delegation of Other Duties. The Master Association shall have the right, but not the obligation, to delegate to the Association on an exclusive or non-exclusive basis, such duties as the Master Association shall deem appropriate. Such delegations shall be made by written notice to the Association, which shall be effective no earlier than thirty (30) days from the date such notice is given. Any delegation made pursuant to the Master Declaration may be modified or revoked by the Master Association at any time. Section 20.4 Acceptance of Delegated Duties. Whenever the Master Association delegates any duty to the Association pursuant to the Master Declaration, the Association shall be deemed to have automatically accepted same and to have agreed to indemnify, defend and hold harmless the Master Association for all liabilities, losses, damages and expenses (including attorneys' fees actually incurred and court costs, through all appellate levels) arising from or connected with the Association's performance, non-performance or negligent performance thereof. 51 WPB_163511.3 March 3, 2006 Section 20.5 Master Association Offices. The Master Association hereby reserves the right to locate an office or offices for the Master Association in a building or buildings located within the Community and at such place as may be designated by the Declarant from time to time until Declarant transfers control of the Master Association in accordance with the Master Declaration. All costs associated with the construction, ownership, lease and maintenance of the Master Association's offices are General Expenses of the Master Association. Section 20.6 Master Association Activities Each Owner and the Association acknowledges that there shall be ongoing activities by the Master Association and Declarant, respectively. Such activities may include, without limitation, maintenance activities and special events undertaken by the Master Association and/or Declarant, respectively. Such activities may at times result in certain levels of noise, annoyance or inconvenience to Owners and other � residents within the Community and the Condominium Property. Notwithstanding the existence of such noise, inconvenience or annoyance, the Association and each Owner acknowledges the need for such maintenance activities in order to maintain the Master Association facilities, and other areas owned or controlled by the Declarant or Master Association, respectively, and to carry on the functions of the respective entities. The Association and each Owner further acknowledge that such� activities such are customary activities incident to the operation of the Master Association. The Association by its joinder in this Declaration and each Owner, by acquiring title to a Unit within the Condominium Property, do hereby release and hold harmless Declarant, Declarant's Affiliates, the Master Association and their respective officers, directors, employees and contractors relative to all activities that may be conducted by the Master Association, Declarant or Declarant's Affiliates, respectively, on or related to the Community, including the Condominium Property. The Association and each Owner hereby acknowledge that the activities of the Master Association, Declarant and Declarant's Affiliates, respectively, shall not constitute a nuisance and shall be specifically exempted from Section 10.4 of this Declaration. ARTICLE 21 MISCELLANEOUS Section 21.1 Notices and Disclaimers as to Access Control S s�. Developer, Developer's Affiliates, Declarant, Declarant's Affiliates, this Association and the Master Association or their respective successors, assigns or franchisees and any applicable cable telecommunications system operator (an "Operator") may, but are not obligated to, enter into contracts for the provision of alarm, life safety, emergency call or monitoring services through any Access Control Systems. DEVELOPER, DEVELOPER'S AFFILIATES, DECLARANT, DECLARANT'S AFFILIATES, THE ASSOCIATION AND THE MASTER ASSOCIATION, THEIR RESPECTIVE OFFICERS, BOARDS OF DIRECTORS, PARTNERS, EMPLOYEES, AGENTS, CONTRACTORS, SUBCONTRACTORS, AND THEIR FRANCHISEES, AND ANY SUCCESSOR, ASSIGN OR FRANCHISEE OF ANY OF THE FOREGOING, AND ANY OPERATOR (HEREINAFTER COLLECTIVELY THE "LISTED PARTIES"), DO NOT GUARANTEE OR WARRANT, EXPRESSLY OR IMPLIEDLY, THE 52 WPB 163511.3 March 3, 2006 MERCHANTABILITY OR FITNESS FOR USE OF ANY SUCH ACCESS CONTROL SYSTEM OR SERVICES, OR THAT ANY SYSTEM OR SERVICES WILL PREVENT INTRUSIONS, FIRES OR OTHER OCCURRENCES, OR THE CONSEQUENCES OF SUCH OCCURRENCES, REGAI2DLESS OF WHETHER OR NOT THE SYSTEM OR SERVICES ARE DESIGNATED TO MONITOR SAME; AND EVERY OWNER OR OCCUPANT OF PROPERTY SERVICED BY THE ACCESS CONTROL SYSTEMS ACKNOWLEDGES THAT THE LISTED PARTIES ARE NOT INSURERS OF THE OWNER'S OR OCCUPANT'S PROPERTY OR OF THE PROPERTY OF OTHERS LOCATED ON THE PREMISES AND WILL NOT BE RESPONSIBLE OR LIABLE FOR LOSSES, INJURIES OR DEATHS RESULTING FROM SUCH OCCURRENCES. It is extremely difficult and impractical to determine the actual damages, if any, which may proximately result from a failure on the part of an alarm or monitoring service provider to perform any of its obligations with respect to such services and, therefore, every Owner or occupant of property receiving security services through the Access Control Systems agrees that the Listed Parties assume no liability for loss or damage to property or for personal injury or death to persons due to any reason, including without limitation, failure in transmission of an alarm, interruption of other service or failure to respond to an alarm because of (a) any failure of the Owner's system; (b) any defective or damaged equipment, device, line or circuit; (c) negligence, active or otherwise, of the service provider or its officers, agents or employees; or (d) fire, flood, riot, war, terrorism, act of God or other similar causes which are beyond the control of the service provider. Subject to the provisions of Chapter 718, Florida Statutes, as amended to the date hereof, EVERY OWNER OR OCCUPANT OF PROPERTY OBTAINING SECURITY, LIFE SAFETY, OR EMERGENCY CALL SERVICES THROUGH THE ACCESS CONTROL SYSTEMS FURTHER AGREES FOR THEMSELVES, THEIR TENANTS, GUESTS, INVITEES, LICENSEES, AND FAMILY MEMBERS THAT IF ANY LOSS, DAMAGE, INJURY OR DEATH SHOULD RESULT FROM A FAILURE OF PERFORMANCE OR OPERATION, OR FROM DEFECTIVE PERFORMANCE OR OPERATION, OR FROIVt IMPROPER INSTALLATION, MONITORING OR SERVICING OF THE SYSTEM, OR FROM NEGLIGENCE, ACTIVE OR OTHERWISE, OF THE SECURITY SERVICE PROVIDER OR ITS OFFICERS, AGENTS, OR EMPLOYEES, THE LIABILITY, IF ANY, OF THE LISTED PARTIES FOR LOSS, DAMAGE, INJURY OR DEATH SUSTAINED SHALL BE LIMITED TO A SUM NOT EXCEEDING TWO HUNDRED FIFTY AND NO/100 U.S. DOLLARS ($250.00), WHICH LIMITATION SHALL APPLY IRRESPECTIVE OF THE CAUSE OR ORIGIN OF THE LOSS OR DAMAGE AND NOTWITHSTANDING THAT THE LOSS OR DAMAGE RESULTS DIRECTLY OR INDIRECTLY FROM NEGLIGENT PERFORMANCE, ACTIVE OR OTHERWISE, OR NON-PERFORMANCE BY ANY OR ALL OF THE LISTED PARTIES. FURTHER, IN NO EVENT WILL THE LISTED PARTIES BE LIABLE FOR CONSEQUENTIAL DAMAGES, WRONGFUL DEATH, PERSONAL INJURY OR COMMERCIAL LOSS, NOR SHALL ANY OWNER OR OCCUPANT OF ANY PROPERTY, THE OWNER'S TENANTS, GUESTS, INVITEES, LICENSEES AND FAMILY MEMBERS BE DEEMED TO HAVE RELIED UPON ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE RELATIVE TO ANY SECURITY MEASURES, LIFE SAFETY SYSTEM, AND EMERGENCY CALL SYSTEM THAT MAY HAVE 53 WPB 163511.3 March 3, 2006 BEEN RECOMMENDED, UNDERTAKEN OR INSTALLED WITHIN THE CONDOMINIUM PROPERTY AND/OR THE ASSOCIATION PROPERTY. In recognition of the fact that interruptions in cable television and other Access Control Systems services will occur from time to time, no person or entity described above shall in any manner be liable, and no user of any Access Control System shall be entitled to refund, rebate, discount or offset in applicable fees, for any interruption in Access Control Systems services, regardless of whether or not same is caused by reasons within the control of the then provider(s) of such services. Section 21.2 Notices and Disclaimers As To Securitv. The Association may, but shall in no manner be obligated to maintain or support certain activities within the Condominium Property or Association Property designed to make the Property safer than they otherwise might be. NONE OF THE LISTED PARTIES 5HALL IN ANY MANNER BE DEEMED TO BE INSURERS OR GUARANTORS OF SECURITY WITHIN THE CONDOMINIUM PROPERTY AND/OR ASSOCIATION PROPERTY. NONE OF THE LISTED PARTIES SHALL BE HELD LIABLE FOR ANY LOSS OR DAMAGE BY REASON OR FAILURE TO PROVIDE THE SECURITY OR THE INEFFECTIVENESS OF SECURITY MEASURES UNDERTAKEN, IF ANY. All Owners and occupants of a Unit and their respective guests, tenants, invitees, licensees and family members, as applicable, acknowledge that the Listed Parties in no manner represent or warrant that any controlled-access gate, fire protection system (including, without limitation, any fire sprinkler system), alarm system or other security system, may not be compromised or circumvented, that any life safety, fire protection system, burglar alarm, controlled access gate or other security systems will prevent loss by fire, smoke, robbery, burglary, theft, hold-up, or otherwise, nor that fire protection systems, burglar alarms, controlled access gates or other security systems will in all cases provide the detection or protection for which the system is designed or intended. EACH OWNER AND OCCUPANT OF ANY UNIT, AND THEIR RESPECTIVE GUESTS, TENANTS, AND INVITEES, AS APPLICABLE, ACKNOWLEDGES AND UNDERSTANDS THAT THE LISTED PARTIES ARE NOT INSURERS AND THAT EACH OWNER AND OCCUPANT AND THEIR RESPECTIVE GUESTS, TENANTS, INVITEES, LICENSEES AND FAMILY MEMBERS ASSUME ALL RISKS FOR LOSS OR DAMAGE TO PERSONS, TO UNITS, AND IMPROVEMENTS THEREON AND TO THE CONTENTS OF UNITS, AND FURTHER ACKNOWLEDGES THAT THE LISTED PARTIES HAVE MADE NO REPRESENTATIONS OR WARRANTIES, N�R HAS ANY OWNER OR OCCUPANT, OR THEIR RESPECTIVE GUESTS, TENANTS, INVITEES, LICENSEES AND FAMILY MEMBERS RELIED UPON ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, RELATIVE TO ANY LIFE SAFETY SYSTEM, FIRE PROTECTION SYSTEM, BURGLAR ALARM, CONTROLLED ACCESS GATE, OR OTHER SECURITY SYSTEMS RECOMMENDED OR INSTALLED FOR ANY SECURITY MEASURES UNDERTAKEN WITHIN THE CONDOMINIUM PROPERTY AND THE ASSOCIATION PROPERTY. EACH OWNER AND OCCUPANT OF ANY UNIT AND 54 WPB 163511.3 March 3, 2006 THEIR RESPECTIVE GUESTS, TENANTS, INVITEES, LICENSEES AND FAMILY MEMBERS ACKNOWLEDGES AND UNDERSTANDS THAT THE PRESERVE AT TEQUESTA TOWNHOMES 1 CONDOMINIUM IS LOCATED IN THE TOWN OF TEQUESTA, PALM BEACH COUNTY, FLORIDA AND SERVICED BY THE POLICE AND FIRE DEPARTMENT OF THE TOWN OF TEQUESTA WHO WILL BE RESPONSIBLE FOR THE SAFETY OF THE OWNERS AND ALL OCCUPANTS OF UNITS. ALL OWNERS ARE ADVISED TO NOTIFY THE APPLICABLE AUTHORITY OF PALM BEACH COUNTY OF ANY AND ALL HOME, SAFETY AND PROPERTY EMERGENCIES AT THE PRESERVE AT TEQUESTA TOWNHOMES 1 CONDOMINIUM. Section 21.3 Notice and Disclaimer as to Water Bodies. NONE OF THE LISTED PARTIES SHALL BE LIABLE OR RESPONSIBLE FOR MAINTAINING OR ASSURING THE SHORELINE, WATER QUALITY OR LEVEL IN ANY LAKE, POND, CANAL, CREEK, STREAM, WATERFALL OR OTHER WATER BODY WITHIN, ADJACENT TO OR NEAR THE CONDOMINIUM PROPERTY OR THE � ASSOCIATION PROPERTY, EXCEPT AS SUCH RESPONSIBILITY MAY BE SIGNIFICANTLY IMPOSED BY, OR CONTRACTED FOR WITH, AN APPLICABLE GOVERNMENTAL OR QUASI-GOVERNMENTAL AGENCY OR AUTHORITY. THERE IS NO GUARANTEE BY THE LISTED PARTIES THAT ANY SHORELINE OR WATER LEVELS WILL BE CONSTANT OR AESTHETICALLY PLEASING AT ANY PARTICULAR TIME. FURTHER, ALL OWNERS AND USERS OF ANY PORTION OF THE PROPERTY LOCATED ADJACENT TO OR HAVING A VIEW OF ANY OF THE AFORESAID WATER BODIES SHALL BE DEEMED, BY VIRTUE OF THEIR ACCEPTANCE OF TAE DEED TO A UNIT OR USE OF SUCH PROPERTY, TO HAVE AGREED TO HOLD HARMLESS THE LISTED PARTIES FOR ANY AND ALL CHANGES IN THE CONDITION, SHORELINE, QUALITY AND LEVEL OF THE WATER IN SUCH BODIES. THE MASTER ASSOCIATION, THE ASSOCIATION, CONTRACTORS, SUBCONTRACTORS, LICENSEES AND OTHER DESIGNEES MAY, FROM TIME TO TIME, EXCAVATE, CONSTRUCT AND MAINTAIN LAKES AND WATER BODIES WITHIN OR IN PROXIMITY TO THE CONDOMINIUM PROPERTY. NOTWITHSTANDING THE FOREGOING, EXCAVATION OR CONSTRUCTION OF WATER BODIES SHALL BE PROHIBITED UNLESS AUTHORIZED BY THE ASSOCIATION AND GOVERNMENTAL BODIES OR AGENCIES HAVING JURTSDICTION. IN THE EVENT THAT THE EXCAVATION OR CONSTRUCTION OF WATER BODIES IS NOT AUTHORIZED BY THE ASSOCIATION AND SAID GOVERNMENTAL BODIES OR AGENCIES, SUCH EXCAVATION OR CONSTRUCTION MAY NOT TAKE PLACE. BY THE ACCEPTANCE OF THE DEED OR OTHER CONVEYANCE OR MORTGAGE, LEASEHOLD, LICENSE OR OTHER INTEREST, AND/OR BY USING ANY PORTION OF THE PROPERTY, EACH SUCH OWNER, OCCUPANT OR USER AUTOMATICALLY ACKNOWLEDGES, STIPULATES AND AGREES: (i) THAT NONE OF THE AFORESAID ACTIVITIES SHALL BE DEEMED NUISANCES OR NOXIOUS OR OFFENSIVE ACTIVITIES HEREUNDER OR AT LAW GENERALLY; (ii) NEITHER THE DEVELOPER, NOR THE ASSOCIATION, NOR ANY OF THE OTHER LISTED PARTIES HAVE EMPLOYED OR CONTRACTED WITH ANY LIFEGUARD FOR ANY BEACH AREAS ADJACENT TO AND/OR IN THE VICINITY 55 WPB 163511.3 March 3, 2006 OF THE CONDOMINIUM PROPERTY AND THAT WADING, SWIMMING OR OTHERWISE ENTERING SUCH WATER BODIES CARRIES WITH IT INHERENT RISKS, AND THAT ANY PERSON ENTERING INTO SUCH WATER BODIES OR ENGAGING IN ANY ACTIVITY ABOUT ANY BEACH ADJACENT TO ANY SUCH WATER BODIES IS ASSUMING ALL RISK AND RESPONSIBILITY FOR ANY INJURY OR OTHER CONSEQUENCE OF SUCH ACTION TO ANY OF THE AFORESAID PERSONS AND ANY CHILDREN, GUESTS, OR OTHER PERSONS UNDER THEIR CONTROL AND DIRECTION; (iii) DEVELOPER AND THE OTHER LISTED PARTIES SHALL NOT BE LIABLE BUT, RATHER, SHALL BE HELD HARMLESS, FROM ANY AND ALL LOSSES, DAMAGES (COMPENSATORY, CONSEQUENTIAL, PUNITIVE OR OTHERWISE), INJURIES OR DEATHS ARISING FROM OR RELATING TO THE AFORESAID ACTIVITIES; (iv) ANY PURCHASE OR USE OF ANY PORTION OF THE CONDOMINIUM PROPERTY AND ASSOCIATION PROPERTY HAS BEEN AND WILL BE MADE WITH FULL KNOWLEDGE OF THE FOREGOING; AND (v) THIS ACKNOWLEDGEMENT AND AGREEMENT IS A MATERIAL INDUCEMENT TO DEVELOPER TO SELL, CONVEY AND/OR ALLOW THE USE OF THE APPLICABLE PORTION OF THE CONDOMINIUM PROPERTY. ALL PERSONS ARE HEREBY NOTIFIED THAT FROM TIME TO TIME ALLIGATORS AND OTHER WILDLIFE MAY INHABIT OR ENTER INTO WATER BODIES OR OTHERWISE BE PRESENT WITHIN, ADJACENT TO OR NEAR THE PROPERTY AND MAY POSE A THREAT TO PERSONS, PETS AND PROPERTY, BUT THAT THE LISTED PARTIES ARE UNDER NO DUTY TO PROTECT AGAINST, AND DO NOT IN ANY MANNER WARRANT AGAINST, ANY DEATH, INJURY OR DAMAGE CAUSED BY SUCH WILDLIFE. Neither Developer nor the Association shall be obligated to erect fences, gates, or walls around or adjacent to any water body or otherwise on the Condominium Property. Notwithstanding the foregoing, the Association may erect a fence adjacent to the boundary of a water body nr otherwise within the boundary of the Condominium Property or the Association Property. Section 21.4 Assumption of Risk. Without limiting any other provision herein, each person within any portion of the Condominium Property and/or Association Property ("User") accepts and assumes all risk and responsibility for noise, liability, injury, or damage connected with use or occupation of any portion of such Condominium Property and/or Association Property and areas adjacent to or in the vicinity of the Condominium Property and/or Association Property, including, without limitation, (a) the condition, water quality, level of any ponds, or and any other water body, together with all other matters set forth in Section 21.3; (b) noise from maintenance equipment; (c) use of pesticides, herbicides, and fertilizers; (d) view restrictions caused by maturation of trees and shrubbery, or construction on any adjacent pxopertie�; (e) reduction in privacy caused by the removal or pruning of shrubbery or trees within any portion of the Condominium Property and/or Association Property or construction on any adjacent pxoperties; (� sounds and/or odor transmission; and (g) design, furnishing and equipping of any portion of the Condominium Property and/or Association Property. Each User also expressly indemnifies and agrees to hold harmless Developer, the Association and all employees, directors, representatives, officers, agents, and partners of the foregoing, from any and all damages and expenses, whether direct or consequential, arising from or related to the User's use of the Condominium Property and/or Association Property, including without limitation attorneys' fees, paraprofessional fees, and costs at trial and upon appeal. Without 56 WPB_163511.3 March 3, 2006 limiting the foregoing, all Users using the Condominium Property and/or Association Property, including without limitation, any pool or spa, do so at their own risk. BY ACCEPTANCE OF A DEED, EACH OWNER ACKNOWLEDGES THAT THE CONDOMINIUM PROPERTY AND/OR ASSOCIATION PROPERTY AND AREAS ADJACENT TO OR IN THE, VICINITY OF EITHER OF THE FOREGOING MAY CONTAIN WILDLIFE. DEVELOPER AND THE CONDOMINIUM ASSOCIATION SHALL HAVE NO RESPONSIBILITY FOR MONITORING SUCH WILDLIFE OR NOTIFYING OWNERS OR OTHER PERSONS OF THE PRESENCE OF SUCH WILDLIFE. EACH OWNER AND HIS OR HER GUESTS AND INVITEES ARE RESPONSIBLE FOR THEIR OWN SAFETY. ADDITIONALLY, EACH OWNER OR USER WHO USES THE SPA, SWIMMING POOL, CABANAS, DECK, FOUNTAINS AND/OR ANY OTHER AMENITIES WITHIN THE ASSOCIATION PROPERTY OR CONDOMINIUM PROPERTY, SHALL BE DEEMED TO HAVE ASSUMED ALL RISK OF THE PROPER AND SAFE USE OF ALL OF SUCH AMENITIES, BASED ON THE SURROUNDING CIRCUMSTANCES, INCLUDING THE PHYSICAL CONDITION OF THE OWNER OR USER, PRESENCE OR ABSENCE OF OTHER PERSONS, AND ANY OTHER CONDITIONS BEARING ON THE SAFE USE OF ANY OF THE FOREGOING. ANY OWNER OR USER MAKING USE OF ANY OF THE FOREGOING SHALL BE DEEMED TO HAVE RELEASED THE DEVELOPER AND THE ASSOCIATION, FROM ANY AND ALL LIABILITY INCLUDING, WITHOUT LIMITATION, FOR INJURY, D.AMAGE OR DEATH RESULTING FROM ANY OF THE FOREGOING. FURTHER, GIVEN THE CLIMATE AND HUMID CONDITIONS IN FLORIDA, MOLDS, MILDEVy, TOXINS AND FUNGI MAY EXIST AND/OR DEVELOP WITHIN THE UNIT, CONDOMINIUM PROPERTY ANDiOR ASSOCIATION PROPERTY. EACH OWNER IS HEREBY ADVISED THAT CERTAIN MOLDS, MILDEW, TOXINS AND/OR FUNGI MAY BE, OR IF ALLOWED TO REMAIN FOR A SUFFICIENT PERIOD MAY BECOME, TOXIC AND POTENTIALLY POSE A HEALTH RISK. BY ACQUIRING TITLE TO A UNIT, EACH OWNER SHALL BE DEEMED TO HAVE ASSUMED THE RISKS ASSOCIATED WITH MOLDS, MILDEW, TOXINS AND/OR FUNGI AND TO HAVE RELEASED THE DEVELOPER FROM ANY AND ALL LIABILITY RESULTING FROM SAME. Section 21.5 Notices and Disclaimers as to Unit Square Foota�e. The square footage calculation of each Unit includes all columns, partitions, chases, pipes, conduits, building systems, interior walls, and wires included within the aforedescribed Unit boundaries, so that no such item is subtracted from the overall square footage of any Unit in measuring such Unit. Each Owner, by acceptance of a deed or other conveyance of a Unit, understands and agrees that there are various methods for calculating the square footage of a Unit. Additionally, as a result of in the field construction, other permitted changes to the Unit, and settling and shifting of improvements, actual square footage of a Unit may also be affected. Accordingly, during a pre-closing inspection the purchaser should, among other things, review the size and dimensions of the Unit. By accepting title to a Unit, the applicable Owner(s) shall be deemed to 57 . WPB_163511.3 March 3, 2606 have conclusively agreed to accept the size and dimensions of the Unit, regardless of any variances in the square footage from that which may have been disclosed at any time prior to closing, whether included as part of Developer's promotional materials or otherwise. Without limiting the generality of this Section 21.5, Developer does not make any representation or warranty as to the actual size, dimensions (including ceiling heights) or square footage of any Unit and each Owner shall be deemed to have fully waived and released any such warranty and claims for losses or damages resulting from any variances between such represented or otherwise disclosed square footage and the actual square footage of the Unit. Section 21.6 Notice and Disclaimer as to Warranties. Except for warranties contained in any Special Warranty Deed by which title to a Unit is conveyed by Developer to a Unit Owner, and any warranties, only to the extent required by 718.203, Florida Statutes (2005) and not yet expired, no other warranties, guarantees or promises of any kind or nature, whether established by statutory, common, case law or otherwise, including, but not limited to, warranties as to compliance with plans, the design, construction, continuation of any particular view (it being understood and agreed that construction on any adjacent prop�rtie� may obstruct such view), sound and/or odor transmission, existence and/or development of molds, mildew, toxins or fungi, furnishing and equipping of the Condominium Property and Association Property, warranties of habitability, fitness for a particular purpose, or merchantability or otherwise, either express or implied, are given or made by the Developer or any affiliate, or are to be relied upon by any Unit Owner, unless expressly stated in writing and signed by both the Unit Owner and the President of the Developer. It is specifically understood and agreed that verbal promises and representations are not valid and that any promises or understandings not specifically stated in the Prospectus or this Declaration are hereby expressly disclaimed. This disclaimer of warranty is not intended to prohibit warranties of "consumer products" as may be provided by the Magnuson-Moss Warranty-Federal Trade Commission Act (15 U.S.C. 1230 et seq.) which may be supplied by the manufacturers of such products within the meaning of said Act. In no event shall the Developer be liable to any Unit Owner or the Condominium Association, or any other person or entity for consequential damages or personal injuries arising from any breach of any warranty applicable to the Developer. In all events, the maximum liability, if any, of the Developer and its officers and directors, under any applicable warranties shall be the replacement cost of the defective portion of the Unit, Coinmon Elements, Association Property, fixtures, or other items of real or personal property. The Developer shall have the sole right to determine whether the defect shall be corrected by repair or replacement. Any warranties applicable to the Developer and its officers and directors, shall not apply if the defective portion of the Unit, Common Elements, Association Property, fixtures, items of personal property or other real or personal property have been subject to. misuse or damage by accident or otherwise, or have not been afforded routine maintenance. Section 21.7 Access of Developer to Buildin�s and Unit and to Reports. For as long as Developer remains liable to the Association or any Unit Owner, under any warranty, whether statutory, express or implied, for any act or omission of Developer in the development, construction, sale and marketing of the Condominium, then Developer and its agents shall have the right, in Developer's sole discretion, and from time to time upon the granting of access thereto by the Condominium Association or a Unit Owner, as the case may be, to enter the 58 WPB 163511.3 March 3, 2006 Condominium Property and Association Property for the purpose of inspecting, testing and surveying same, to determine the need for repairs, improvements or replacements, so as to permit Developer to fulfill its obligations under such warranties. Failure of the Condominium Association or of a Unit Owner to grant such access may result in the appropriate warranty being nullified and of no further force or effect. For as long as the Developer remains liable to the Association or any Unit Owner under any warranty, whether statutory, express or implied, or for any act or omission of the Developer relative to the development, construction, sale and marketing of the Condominium, the Association shall furnish to the Developer, all documentation prepared on behalf of the Association concerning the inspection, testing and surveying of the Condominium Property, Association Property, Common Elements or Units relative to analyzing such areas for compliance with all such warranties. Failure of the Association or of a Unit Owner to provide such access to reports and/or documentation shall result in the appropriate warranty being nullified and being of no further force or effect. Section 21.8 Association Liabilitv. Notwithstanding anything contained herein or in the Articles of Incorporation, Bylaws, any rules or regulations of the Association or any other document governing or binding the Association (collectively, the "Association Documents") the Association, except to the extent specifically provided to the contrary herein, shall not be liable or responsible for, or in any manner be a guarantor or insurer of, the health, safety or welfare of any Owner, occupant or user of any portion of the Condominium and/or Association Property, including, without limitation, Owners and their guests, invitees, agents, employees, contractors or subcontractors or for any property of any such persons. Without limiting the generality of the foregoing: (a} it is the express intent of the Association Documents that the various provisions thereof which are enforceable by the Association and which govern or regulate the uses of the properties. have been written, and are to be interpreted and enforced, for the sole purpose of enhancing and maintaining the enjoyment of the �rc�perties and the value thereof; (b) the Association is not empowered, and has not been created, to act as an entity which prevents tortuous activities or which enforces or ensures the compliance with the laws of the United States, Sate of Florida, Palm Beach County and/or any other jurisdiction; and (c) the provisions of the Association Documents setting forth the uses of Assessments which relate to health, safety and/or welfare shall be interpreted and applied only as limitations on the uses of Assessment funds and not as creating a duty of the Association to protect or further the health, safety or welfare of any person(s), even if Assessment funds are chosen to be used for any such reason. Each Owner (by virtue of his acquisition of title to his Unit) and each other person having an interest in or lien upon, or making use of, any portion of the properties (by virtue of accepting such interest or lien or making such use) shall be bound by this provision and shall be deemed to have automatically waived any and all rights, claims, demands and cause of action against the Association arising from or connected with any matter for which the liability of the Association has been disclaimed hereby. As used herein, "Association" shall 59 WPB 163511.3 March 3, 2006 include within its meaning all of Association's directors, officers committee and Board members, employees, agents, contractors (including management companies), subcontractors, successors and assigns. The provisions hereof shall also inure to the benefit of the Developer, which shall be fully protected hereby. Section 21.9 Covenants Runnin� With The Land. ANYTHING TO THE CONTRARY HEREIN NOTWITHSTANDING AND WITHOUT LIMITING THE GENERALITY (AND SUBJECT TO THE LIMITATIONS) OF OTHER APPLICABLE SECTIONS HEREOF, IT IS THE INTENTION OF ALL PARTIES AFFECTED HEREBY (AND THEIR RESPECTIVE HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS) THAT THESE COVENANTS AND RESTRICTIONS SHALL RUN WITH THE LAND AND WITH TITLE TO THE CONDOMINIUM PROPERTY AND THE ASSOCIATION PROPERTY. WITHOUT LIMITING THE GENERALITY OF ANY OTHER SECTION HEREOF, IF ANY PROVISION OR APPLICATION OF THIS DECLARATION WOULD PREVENT THIS DECLARATION FROM RUNNING WITH THE LAND AS AFORESAID, SUCH PROVISION AND/OR APPLICATION SHALL BE JUDICIALLY MODIFIED, IF AT ALL POSSIBLE, TO COME AS CLOSE AS POSSIBLE TO THE INTENT OF SUCH PROVISION OR APPLICATION AND THEN BE ENFORCED IN A MANNER WHICH WILL ALLOW THESE COVENANTS AND RESTRICTIONS TO SO RUN WITH THE LAND; BUT IF SUCH PROVISION AND/OR APPLICATION CANNOT BE SO MODIFIED, SUCH PROVISION AND/OR APPLICATION SHALL BE UNENFORCEABLE AND CONSIDERED NULL AND VOID IN ORDER THAT THE PARAMOUNT GOAL OF THE PARTIES AFFECTED HEREBY (THAT THESE COVENANTS AND RESTRICTIONS RUN WITH THE LAND AS AFORESAID) BE ACHIEVED. Section 21.10 Interpretation. The Board of Directors of the Association shall be responsible for interpreting the provisions hereof and of any of the Exhibits attached hereto. Such interpretation shall be binding upon all parties unless wholly unreasonable. An opinion of legal counsel that any interpretation adopted by the Association is not unreasonable shall conclusively establish the validity of such interpretation. Section 21.11 Owner Acknowled�ement of Association Authori�. By acquisition of title to a Unit, every Unit Owner acknowledges that the Association is a multi- condominium association which is responsible for the operation, maintenance and management of this Condominium, other condominiums within The Preserve at Tequesta Townhomes, and the Association Property, and that because other such condominiums within The Preserve at Tequesta Townhomes will be created at times different from this Condominium, they may be governed by declarations of condominium or other constituent documents which contain provisions different from this Declaration, but which are, nevertheless, in compliance with the Condominium Act. Each Unit Owner further acknowledges and agrees that the Association, through its Board of Directors, has the authority and obligation to make decisions affecting this Condominium and all other condominiums in The Preserve at Tequesta Townhomes, all Unit Owners in this Condominium, as well as unit owners in all other condominiums in The Preserve at Tequesta Townhomes, and the Association Property. Accordingly, to the extent that there may exist differences in the various declarations of condominium or other constituent documents of any condominiums as to inatters affecting unit owners in more than one condominium, and/or 60 WPB 163511.3 March 3, 2006 property in more than one condominium, the Association Property or property otherwise subject to control by the Association, it is within the authority of the Board of Directors to determine, in its business judgment, the appropriate application of any differing or conflicting provisions of such declarations and/or constituent documents and in such instance the decision of the Boaxd of Directors shall be determinative and final. Section 21.12 Severabilitv. The invalidity in whole or in part of any covenant or restriction, or any Article, Section, subsection, sentence, clause, phrase or word, or other provision of this Declaration of Condominium and the Articles of Incorporation, Bylaws and rules and regulations of the Association shall not affect the validity of the remaining portions thereof. Section 21.13 Applicabilitv of Declaration of Condominium. All present or future Owners, tenants, or any other person who might use the facilities of the Condominium in any manner, are subject to the provisions of this Declaration and the mere acquisition or rental of any Unit or the mere act of occupancy of any Unit, shall signify that the provisions of this Declaration of Condominium are accepted and ratified in all respects. Section 21.14 Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan of Condominium ownership. Section 21.15 Parties Bound. The restrictions and burdens imposed by this Declaration of Condominium are intended to and shall constitute covenants running with the land, and shall constitute an equitable servitude upon each Unit and its appurtenant undivided interest in Common Elements as well as on the Association Property and this Declaration shall be binding upon Developer, its successors and assigns, and upon all parties who may subsequently become Owners of Units in the Condominium, and their respective heirs, legal representatives, successors and assigns. Section 21.16 Name. The Developer reserves the exclusive right to use the name "The Preserve at Tequesta Townhomes Condominium" and all similar names in connection with any future real estate developments and business enterprises. Section 21.17 Deliverv of Documents to Subsequent Owners. Owners shall be obligated to deliver the documents originally received from the Developer, containing this and other declarations and documents, to any grantee or lessee of such Owners. Section 21.18 Joinder bv The Preserve At Tequesta Townhomes Condominium Association, Inc.. This Declaration is being executed by The Preserve at Tequesta Townhomes Condominium Association, Inc. to acknowledge its joinder in this Declaration for the purpose of agreeing to perform its obligations as contained herein. Section 21.19 Drainage Easements. Non-exclusive easements are hereby granted by Developer for the installation and maintenance of drainage facilities which may exist in favor of the Master Association and SFWMD. Within these easement areas, no structure, planting or other material, other than sod, shall be placed or permitted to remain (unless installed by the Developer, its designees, successors or assigns and replacements of same) which may interfere with such installation and maintenance, or which may obstruct or retard the flow of storm water. 61 WPB 163511.3 March 3, 2006 Notwithstanding the foregoing, sod and other plantings shall be permitted if the drainage easement is one which covers a buried pipeline, and over which no surface drainage is to be maintained. The Master Association and SFWMD shall have access to all such drainage easements, for the purpose of operation and of maintenance thereof and shall not be held liable for any damage to or removal of any plantings caused by such operation and maintenance activities. Section 21.20 South Florida Water Mana�ement District. Developer, the Association, and its members acknowledge that SFWMD has the right to take enforcement action, including civil action for an injunction and penalties, against any applicable parties to compel it to correct any outstanding problems with t�ie Surface Water Management System facilities or in mitigation or conservation areas under the responsibility or control of such parties, if any. Section 21.21 Easements. Should the intended creation of any easement provided for in this Declaration fail by reason of the fact that at the time of creation there may be no grantee in being having the capacity to take and hold such easement, then any such grant of easement deemed not to be so created shall, nevertheless, be considered as having been granted directly to the Association as agent for such intended grantees for the purpose of allowing the original party or parties to whom such easements were originally to have been granted, the benefit of such easement, and the Unit Owners hereby designate the Developer and the Association (or either of them) as their lawful attorney-in-fact, to execute any instrument on such Unit Owner's behalf as may hereafter be required or deemed necessary for the purpose of later creating such easement as it was intended to have been created herein: Formal language of grant or reservation with respect to such easements, as appropriate, is hereby incorporated in the easement provisions hereof to the extent not so recited in some or all of such provisions. Section 21.22 Governing Law and Venue. The terms, covenants and conditions of this Declaration shall be construed, governed by and enforced in accordance with the laws of the State of Florida and venue for all purposes shall be deemed to be Palm Beach County, Florida. Section 21.23 Gender and Pluralitv. Whenever the context so requires, the use of the masculine gender, the use of the singular to include the plural, and the use of the plural to include the singular. Section 21.24 Owner Acce�tance and Ratification. By acquisition of title to a Unit or Units subject to this Declaration, each Owner thereby irrevocably ratifies, approves and affirms all provisions of the Declaration, together with all actions of the Board with respect to the method of deterinination and collection of assessments and assessment rates for the year during which such Owner acquired title to his Unit. 62 WPB 163511.3 March 3, 2006 IN WITNESS WHEREOF, Developer has caused the foregoing Declaration of Condominium to be executed, by its undersigned, duly authorized officers on the date set forth above. CORNERSTONE TEQUESTA, L.L.C., a WITNESSES: Florida limited liability company By: Signature of Witness Name: Title: Print Name of Witness . Signature of Witness Print Name of Witness STATE OF FLORIDA ) ) ss: COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 200_, by , President of CORNERSTONE TEQUESTA, L.L.C., a Florida limited liability company, on behalf of the company, who is personally known to me or who has produced as identification. (NOTARY PUBLIC) (Print Name of Notary Public) (Notary Seal) My Commission Expires: 63 WPB_163511.3 March 3, 2006 Joinder by THE PRESERVE AT TEQUESTA TOWNHOMES CONDOMINIUM ASSOCIATION, INC., pursuant to Section 21.18 hereo£ THE PRESERVE AT TEQUESTA TOWNHOMES CONDOMINIUM ASSOCIATION, INC., a Florida not-for- profit corporation WIT`NESSES: By: Signature of Witness President Print Name of Witness Signature of Witness Print Name of Witness STATE OF FLORIDA ) ) ss: COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 200_ by , as President of THE PRESERVE AT TEQUESTA TOWNHOMES CONDOMINIUM ASSOCIATION, INC., a Florida not-for-profit corporation, on behalf of the corporation, who is personally known to me or who has produced as identification. (NOTARY PUBLIC) (Print Name of Notary Public) Commission Number: My Commission Expires: 64 WPB_163511.3 March 3, 2006 MORTGAGEE'S CONSENT AND JOINDER This Consent and Joinder of Mortgagee is made this day of , 200_, by BANKLTNITED, FSB, a Federal savings bank, ("Mortgagee") having a mailing address of 255 Alhambra Cxrcle, 2 °d Floor, Coral Gables, Florida 33134 ("Mortgagee"): WITNESSETH: For good and valuable consideration in hand paid, the Mortgagee, as owner and holder of the following described documents (the "Loan Documents"): l. Mortgage recorded in Official Records Book 17874, Page 1498, of the Public Records of Palm Beach County, Florida, and 2. Assignment of Leases, Rents and Profits, recorded in Official Records Book 17874, Page 1550, of the Public Records of Palm Beach County, Florida; and 3. UCC Financing Statement recorded in Official Records Book 17874, Page 1563, of the Public Records of Palm Beach County, Florida, as the foregoing may be amended, securing all of the real property described therein, hereby consents to and joins in the making of the Declaration of Covenants, Restrictions and Easements for The Preserve at Tequesta. Provided always, nevertheless, that nothing herein contained shall in anyway impair, alter or diminish the effect, lien or encumbrance of the Loan Documents on the remaining part of said mortgaged premises, or any of the rights and remedies of the Mortgagee or any subsequent holder thereof, nor shall anything herein contained by construed as an assumption by Mortgagee of any obligations of the grantor of the foregoing Declaration. IN WITNESS WHEREOF, the Mortgagee has hereunto caused these presents to be executed on the day and year first above written. BANKUNITED, FSB a Federal savings bank By: Sign Name Name: Title: Print Name Sign Name Print Name WPB_163511.3 March 3, 2006 64 STATE OF FLORIDA ) ) ss: COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 200_, by , the of BANKIJNITED, FSB, a Federal savings bank, who is personally known to me or who has produced as identification. Notary Public, State of Florida Commission Number: My Commission Expires: {notary seal} WPB 163511.3 March 3, 2006 65 Page is too large to OCR. Page is too large to OCR. Page is too large to OCR. Page is too large to OCR. Page is too large to OCR. Page is too large to OCR. Page is too large to OCR.