Eagle Ridge Homeowners Association

CC&R’s

NOTICE REGARDING

DISCRIMINATORY RESTRICTIONS (California Government Code 12956.1)

In accordance with California Government Code 12956.1 the

Association includes with this governing document the

following information:

"If this document contains any restriction based on race, color,

religion, sex, gender, gender identity, gender expression, sexual

orientation, familial status, marital status, victim of abuse

status, disability, genetic information, national origin, source of

income as defined in subdivision (p) of Section 12955, or

ancestry, that restriction violates state and federal fair housing

laws and is void, and may be removed pursuant to Section

12956.2 of the Government Code. Lawful restrictions under

state and federal law on the age of occupants in senior housing

or housing for older persons shall not be construed as

restrictions based on familial status."

I

-Escrow No. 753220 RECORDED AT THE REQUEST OF: First American Title

WHEN RECORDED RETURN TO:

HIIIU 1 1 1111 I •0014710402•

BRENDA DAVIS

Fees.... 184.00 Taxes ... Copies .. __ _ AMT PAID 184.00

Shapell Industries Inc. 100 North Milpitas Blvd. Milpitas, CA 95035

SANTA CLARA COUNTY RECORDER Recorded at the request of First American Title Company

ROE� 006 3/18/1999 8:00 AM

DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS

OF

THE COMMUNITY OF EAGLE RIDGE

LITTLE & SAPUTO ATTORNEYS AT LAW

OLYMPIC BOULEVARD, 1100 LNUT CREEK, CA 94596-5024

(925) 944-5000

A Common Interest Development

INDEX

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

OF THE COMMUNITY OF EAGLE RIDGE

A Common Interest Development

I INTENTION OF DECLARATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 1 1.1 FACTS .................................................... 1.1 1. 1 . 1 Property Owned by Declarant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 1.1.2 Nature of Project ....................................... 1. 1 1.1.3 Phases of ProJect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 1.2 APPLICABILITY OF RESTRICTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 1.3 RELATIONSHIP TO GOLF COURSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 II DEFINITIONS ................................................... 2.1 2.1 ADDITIONAL CHARGES ....................................... 2.1 2.2 ADDITIONAL PROPERTY ...................................... 2.1 2.3 ALTERATION ............................................... 2.1 2.4 ARTICLES ................................................. 2.1 2.5 ASSOCIATION .............................................. 2.1 2.6 BOARD ................................................... 2.1 2.7 BUDGET .................................................. 2.1 2.8 BUILDER .................................................. 2.1 2.9 BYLAWS .................................................. 2.1 2.10 CITY ..................................................... 2.1 2.1 1 COMMON AREA ............................................ 2.1 2.1 2 COUNTY .......... · ........................................ 2.1 2.1 3 COURSE OWNER ............................................ 2.1 2.1 4 DECLARANT .............................................. : 2.1 2.1 5 DECLARATION .............. ; .............................. 2.2 2.1 6 DECLARATION OF ANNEXATION ............................... 2.2 2.1 7 DELEGATE ................................................ 2.2 2.1 8 DISTRICT .................................................. 2.2 2.1 9 EXEMPT PARCEL ............................................ 2.2 2.20 FIRST MORTGAGE ........................................... 2.2 2.2 1 FIRST MORTGAGEE .......................................... ; 2.2 2.2 2 FUEL TRANSITION ZONE ...................................... 2.2 2.2 3 GOLF COURSE .............................................. 2.2 2.2 4 IMPROVEMENTS ............................................ 2.2 2.2 5 INVITEE .................................................. 2.3 2.2 6 LOT ...................................................... 2.3 2.2 7 MAP ..................................................... 2.3 2.2 8 MEMBER ................... · ............................... 2.3 2.2 9 MORTGAGE ................................................ 2.3 2.30 MORTGAGEE ............................................... 2.3 2.31 NOTICE AND HEARING ....................................... 2.3 2.32 OWNER .................................................. : 2.3 2.33 PARTY FENCE .............................................. 2.3 2.34 PHASE .................................................... 2.3 2.35 PROJECT .................................................. 2.3 2.36 PROJECT COMMON AREA ..................................... 2.3 2.37 PROJECT DOCUMENTS ....................................... 2.3 2.38 PUBLIC REPORT ............................................ 2.3 2.39 RESIDENCE ................................................ 2.3 2.40 RULES .................................................... 2.3 2.4 1 SUBASSOCIATION ........................................... 2.4

LITTLE & SAPUTO A.ITORNEYSATLAW

1901 OLYMPIC BOULEVARD, #100 WALNUT CREEK. CA 94596-5024

(925) 944-5000

-i- 0 2/2 2/9 9

2.4 2 SUBASSOCIATION DECLARATION ............................... 2.4 2.4 3 SUBJECT PROPERTY ......................................... 2.4 2.44 VILLAGE .................................................. 2.4 2.4 5 VILLAGE MAINTAINED AREA .................................. 2.4 III OWNERSHIP AND EASEMENTS ...................................... 3.1 3.1 NON-SEVERABILITY ......................................... 3.1 3.2 OWNERSHIP OF LOTS ........................................ 3.1 3.3 OWNERSHIP OF COMMON AREA ................................ 3.1 3. 3 .1 Acceptance of Common Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 .1 3.3.2 Transfers of Common Area ................................ 3.1 3.3.3 Consent of City ........................................ 3.1 3.4 OWNERSHIP OF PROJECT COMMON AREA ......................... 3.1 3.5 OWNERSHIP OF PARTY FENCES ................................ 3.1 3.6 EASEMENTS ............................................... 3.1 3.6.1 Easements On Map ...................................... 3.2 3.6.2 Easements For Common Area ............................... 3.2 3.6.3 Party Fences ........................ · .................. 3.2 3.6.4 Mailboxes ............................................ 3.2 3.6.5 Utilities ............................................. 3.2 3.6.6 Storm Drains .......................................... 3.2 3. 6. 7 Encroachment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 2 3.6.8 Support, Maintenance and Repair ............................. 3.3 3.6.9 Golf Course Easements ................................... 3.3 3.6.1 0 Sign Easements ........................................ 3.4 3.6.1 1 Right to Photograph ..................................... 3.4 3.6.1 2 Exempt Parcels ........................................ 3.4 3. 6. 1 3 Easement to Governmental Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 5 3.6.1 4 Association's Easements ................................... 3.5 3.6.1 5 Additional Easements .................................... 3.5 3. 6 .1 6 Easement to Declarant For Adjoining Property . . . . . . . . . . . . . . . . . . . . 3. 5 3.6.1 7 Annexation of Additional Property ............................ 3.5 IV USES AND RESTRICTIONS ......................................... · 4.1 4.1 4.2 4.3 4.4 4.5 4.6

4.7 4.8

4.9 4.10

4.11 4.1 2 4.1 3 4.14 4.1 5 4.1 6 4.1 7 4.18 4.1 9 4.2 0 4.21

LITTLE & SAPUTO ATTORNEYS AT LAW

I OLYMPIC BOULEVARD, 1100 ALNUT CREEK, CA 94596-5024

(925) 944-5000

ALTERATIONS .............................................. 4.1 ANIMALS ................................................. 4.1 ANTENNAS AND SATELLITE DISHES ............................. 4.1 APPEARANCE OF GOLF COURSE ................................ 4.1 DRAINAGE ................................................ 4.1 ENGINEERING REQUIRED ..................................... 4.1 EXTERIOR LIGHTING ......................................... 4.2 FENCING .................................................. 4.2 4.8. l Adjacent to Golf Course ................................... 4.2 4.8.2 Other Fences .......................................... 4.2 4.8.3 "Spite" Fences .. • ....................................... 4.2 GOLF COURSE AREAS ........................................ 4.2 GOLF CART PATHS .......................................... 4.2 GOLF TOURNAMENTS ........................................ 4.2 ENTRY ONTO GOLF COURSE ................................... 4.2 INVITEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 3 LIQUOR SALES ............................................. 4.3 MINERAL EXPLORATION ...................................... 4.3 OWNERSHIP OF PROPERTY NEAR A GOLF COURSE .................. 4.3 PARKING .................................................. 4.3 RECLAIMED WATER ......................................... 4.4 RENTAL OF LOTS ........................................... 4.4 RULES .................................................... 4.4 SIGNS .................................................... 4.4 4.21.1 Declarant ............................................ 4.4 4.21.2 Legal Proceedings ....................................... 4.4 4.21.3 Project Identification ..................................... 4.4 4.21.4 Sale or Rent .......................................... 4.4 4.21.5 Golf Course Crossing Signs ................................ 4.4

-ii- 02/2 2/9 9

4.2 2 4.2 3 4.2 4 4.2 5 4.2 6 4.2 7

4.2 8

4.2 1.6 Golf Course Identification ................................. 4.4 4.2 1.7 Golf Course Boundaries ....................... . ........... 4.4 4.2 1.8 Signs Approved By Board .................. . . ............. 4.4 SPORTS EQ UIPMENT ......................................... 4.4 STORAGE OF WASTE MATERIALS ............................. . . 4.5 TIGER SALAMANDER HABITAT ................................. 4.5 TRAFFIC REGULATIONS ...................................... 4.5 USE AND OCCUPANCY OF RESIDENCES ............... . .......... 4.5 USE OF COMMON AREA ...................................... 4.5 4.2 7 .1 Conveyance of Property by Association ......................... 4.5 4.2 7.2 Conveyance of Property to Association ......................... 4.6 USES IN SURROUNDING AREAS ................................. 4.6 V IMPROVEMENTS ................................................ 5.1 5.1 MAINTENANCE OF COMMON AREA AND IMPROVEMENTS ............ 5.1 5 .1.1 Streets and Street Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 .1 5.1.2 Storm Drainage ........................................ 5.1 5. 1. 3 Tiger Salamander Habitat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 1 5.1.4 Open Space ........................................... 5.1 5.1.5 Creekways ........................................... 5.1 5.1.6 Public Use Easements .................................... 5.1 5 .1. 7 Fuel Transition Zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 2 5.2 ALTERATIONS TO COMMON AREA .............................. 5.2 5.2.1 Approval ............................................ 5.2 5.2.2 Funding ............................................. 5.2 5.3 MAINTENANCE OF VILLAGE MAINTAINED AREA ................... 5.2 5.4 ALTERATIONS TO VILLAGE MAINTAINED AREA .................... 5.2 5.4.1 Approval ............................................ 5.2 5.4.2 Funding ............................................. 5.2 5.5 MAINTENANCE OF LOTS AND RESIDENCES ....................... 5.2 5.5.1 Mailboxes ............................................ 5.2 5.5.2 Water Lines ........................................... 5.2 5.5.3 Sanitary Sewer .. : ...................................... 5.2 5.5.4 Public Use Easements .................................... 5.3 5.6 ALTERATIONS TO LOTS AND RESIDENCES ....................... ." 5.3 5.7 MAINTENANCE AND REPAIR OF FENCES ......................... 5.3 5.7.1 Fences Adjacent to Golf Course .............................. 5.3 5.7.2 Party Fences .......................................... 5.3 5.7.3 Fences Separating Common Area and Lots ...................... 5.3 5.8 LANDSCAPING ............................................. 5.3 5.8.1 Common Area ......................................... 5.3 5.8.2 Lots ................................................ .5.3 5.8.3 Park:Vay_Strips ......................................... 5.4 5.8.4 Pubhc Right-of-Way ..................................... 5.4 5.9 RIGHTS OF MAINTENANCE AND ENTRY .......................... 5.4 5. 9 .1 By Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 .4 5.9.2 By Golf Course ........................................ 5.4 5.10 DAMAGE AND DESTRUCTION .................................. 5.4 5.10.1 Bids .................. · .............................. 5.4 5 .10.2 Sufficient Proceeds ...................................... 5 .4 5 .10. 3 Additional Special Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 5 5.10.4 Village Maintained Area .................................. 5.5 5.1 1 DAMAGE OR DESTRUCTION TO RESIDENCES AND/OR LOTS ........... 5.5 5.1 2 CONDEMNATION OF COMMON AREA ............................ 5.5 VI FUNDS AND ASSESSMENTS ........................................ 6.1 6.1 COVENANTS TO PAY ......................................... 6.1 6 .1.1 Liability for Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 .1 6.1.2 Funds Held in Trust ..................................... 6.1 6.1.3 Offsets .............................................. 6.1 6.2 REGULAR ASSESSMENTS ...................................... 6.1

LITTLE & SAPUTO ATTORNEYS AT LAW

OLYMPIC BOULEVARD. 1100 l''ALNUT CREEK, CA 94596-5024

(925) 944-5000

6.2.1 Payment of Regular Assessments ............................. 6.1 6.2.2 Allocation of Regular Assessments ............................ 6.1 -iii- 0 2/2 2 /9 9

6.3 6.4 6.5 6.6

6.7

6.8

6.9 6.1 0

6.2.3 Exemptions from Regular Assessment .......................... 6.2 6.2.4 Non-Waiver of Assessments ................................ 6.2 SPECIAL ASSESSMENTS ....................................... 6.2 REIMBURSEMENT ASSESSMENTS ............................... 6.3 LIMITATIONS ON ASSESSMENTS ................................ 6.3 ACCOUNTS ................................................ 6.3 6.6.1 Types of Accounts ...................................... 6.3 6.6.2 Reserve Account ....................................... 6.3 6.6.3 Current Operation Account ................................. 6.3 BUDGET, FINANCIAL STATEMENTS, REPORTS AND STUDIES .......... 6.3 6.7.1 Preparation and Distribution of Budget ......................... 6.3 6.7.2 Annual Report ......................................... 6.4 6. 7.3 Quarterly Reconciliation .................................. 6.4 6.7.4 Reserve Account Study ................................... 6.4 6.7.5 Notice of Increased Assessments ............................. 6.4 6.7.6 Statement of Outstanding Charges ............................ 6.4 6.7.7 Schedule of Monetary Penalties .............................. 6.4 ENFORCEMENT OF ASSESSMENTS ............................... 6.4 6. 8. 1 Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 .4 6.8.2 Additional Charges ...................................... 6.5 6.8.3 Satisfaction of Lien ...................................... 6.5 6.8.4 Lien Eliminated By Foreclosure .............................. 6.5 6.8.5 Waiver of Homestead Protections ............................. 6.6 SUBORDINATION OF LIEN ..................................... 6.6 SUBASSOCIATION ASSESSMENTS ................................ 6.6 6.1 0.1 Joint Collection of Regular Assessments ........................ 6.6 6.1 0.2 Parity of Priority of Subassociation Documents .................... 6.6 VII MEMBERSHIP IN AND DUTIES OF THE ASSOCIATION ..................... 7.1 7 .1 THE ORGANIZATION ......................................... 7 .1 7.2 MEMBERSHIP .............................................. 7.1 7. 2. 1 Appurtenant to Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 .1 7.2.2 Annexation ........................................... 7.1 7.3 VOTING .................................................. : 7.1 7.4 RULES .................................................... 7.1 7.5 TRANSFERS OF COMMON AREA ................................ 7.1 7.6 INSURANCE ................................................ 7.1 7. 6. 1 General Provisions and Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 .1 7.6.2 Types of Coverage ...................................... 7.2 7.6.3 Annual Review ........................................ 7.3 7.6.4 Annual Notice to Members ................................. 7.3 7.7 TIGER SALAMANDER HABITAT ................................. 7.3 VIII DEVELOPMENT RIGHTS ........................................... 8.1 8.1 LIMITATIONS OF RESTRICTIONS ................................ 8.1 8.2 RIGHTS OF ACCESS AND COMPLETION OF CONSTRUCTION ........... 8.1 8.3 SIZE AND APPEARANCE OF PROJECT ............................ 8.1 8.4 MARKETING RIGHTS ......................................... 8.1 8.5 ALTERATIONS TO MAP ....................................... 8.1 8.6 TITLE RIGHTS .............................................. 8.1 8. 7 AMENDMENT .............................................. 8.2 IX RIGHTS OF MORTGAGEES ......................................... 9.1 9.1 CONFLICT ................................................. 9.1 9.2 INSPECTION OF BOOKS AND RECORDS ........................... 9.1 9.3 FINANCIAL STATEMENTS FOR MORTGAGEES ...................... 9.1 9 .4 MORTGAGE PROTECTION ..................................... 9 .1 X AMENDMENT AND ENFORCEMENT ................................. 1 0.1 1 0.1 AMENDMENTS ............................................ 1 0.1

LITTLE & SAPUTO

ATTORNEYS AT L.AW '01 OLYMPIC BOULEVARD, /100 lo/ ALNUT CREEK, CA 94596-5024

(925) 944-5000

1 0.1.1 By Declarant ......................................... 1 0.1 1 0.1.2 By Owners .......................................... 1 0.1 1 0.1.3 Consent of City Required ................................. 1 0.1 -iv- 0 2/22/9 9

XI

10.2

10.3 10.4 10.5 10.6

10.7

10.1.4 Consent of Course Owner Required ......................... . 10.1.5 Exempt Parcels ...................................... . 10.1.6 Recordation of Amendment .............................. . ENFORCEMENT BY ASSOCIATION, DECLARANT AND OWNERS ....... . 10.2.1 Rights to Enforce ..................................... . 10.2.2 Violation of Law ..................................... . 10.2.3 Remedies Cumulative .................................. . 10.2.4 Nonwaiver ......................................... . ENFORCEMENT BY COURSE OWNER ........................... . ENFORCEMENT BY CITY .................................... . NOTICES TO MEMBERS OF LEGAL PROCEEDINGS ................. . CONDITIONS TO CERTAIN LEGAL PROCEEDINGS ................. . 10.6.1 Association's Notice ................................... . 10.6.2 Notice Tolls Limitations on Actions ......................... . 10.6.3 Meetings ........................................... . 10.6.4 Inspectlons and Testing ................................. . 10.6.5 Settlement Offer ...................................... . 10.6.6 Time Periods and Notices ................................ . 10.6.7 Rejection of Settlement Offer ............................. . 10.6.8 Association Relieved of Obligations ......................... . 10.6.9 Failure to Comply ..................................... . MANDATORY BINDING ARBITRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 7. 1 Selection and Timing . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 10.7.2 Discovery .......................................... . 10.7.3 Full Disclosure ....................................... . 10.7.4 Hearing ........................................... . 10.7.5 Decision ........................................... . 10.7.6 Fees and Costs ....................................... . 10. 7. 7 Judicial Reference Alternative ............................. . ARCHITECTURAL AND LANDSCAPING CONTROL ...................... . 1 1.1 APPLICABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............. . 11.1.1 Generally ..... -..................................... .

11.1.2 Exceptions ......................................... . 11.2 UEVBERseHiPO� �cfilTECTURAL DESiGN COMMITTEE. : : : : : : : : : : : : 11.2.1 Appointment By Class C Member .......................... . 11.2.2 Appointment By Board ................................. . 11.3 DUTIES AND POWERS ...................................... . 11.3.1 Duties ................. · ........................... . 11.3 .2 Architectural Design Guidelines ............................ . 11.3.3 Powers ............................................ . 11. 3 .4 Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.4 APPLICATION FOR APPROVAL OF IMPROVEMENTS ................ . 1 1.5 BASIS FOR APPROVAL OF IMPROVEMENTS ...................... . 11.5 .1 Conformity to Architectural Design Guidelines .................. . 11.5.2 Architectural Review ................................... . 11.5.3 Site Review ......................................... . 11. 5 .4 Landscape Review . . . . . . . .· . . . . . . . . . . . . . . . . . . . . . . . . . . . · . . 11.5.5 Drainage ........................................... . 11.5.6 Lots on Golf Course ................................... . 11.6 }b� o��}�R�1 ALs·, ·coNDiTIONAL APi>ilov ALS ANri DENIALS . : : : : : 11.7 PROCEEDING WITH WORK .................................. . 11.8 FAILURE TO COMPLETE WORK ............................... . 11.9 DETERMINATION OF COMPLIANCE ............................ . 11.9.1 Notice of Completion .................................. . 11.10 }�ttiJ115!ocJiEMEDY·rnE·NoN:coMi>iiANcE·:::::::::::::::::::: 11.11 WAIVER ................................................ . 11.1 2 APPEAL OF DECISION OF ARCHITECTURAL DESIGN COMMITTEE ..... . 1 1.1 3 LIABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 4 EVIDENCE OF APPROVAL OR DISAPPROVAL ..................... .

10.1 10.1 10.1 10.1 10.1 10.2 10.2 10.2 10.2 10.2 10.2 10.3 10.3 10.3 10.3 10.4 10.4 10.4 10.5 10.5 10.5 10.6 10.6 10.7 10.7 10.7 10.7 10.7 10.7 11.1 11.1 11.1 11.1 11.1 11.1 11.1 11.1 11.1 11.1 11.2 11.2 11.2 11.2 11.2 11.2 11.2 11.2

11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.4 11.4 11.4 11.4 11.4 11.4 -v- 0 2/22/9 9

LITTLE & SAPUTO A1TORNEYS AT LAW

1901 OLYMPIC BOULEVARD, 1100 WALNUT CREEK, CA 94S96-S024

(92S) 944-SOOO

XII ANNEXATION ......... . . . . . ....... . .......... . .......... . ..... . 1 2.1 PROPERTY WHICH MAY BE ANNEXED .... . . . ... . . . . . .. . ....... . 1 2.1.1 Additional Property . . . . ... . ... . . . . . . ..... . . . . . . . . . . . . . . . 1 2 .1 . 2 Other Property .. . . . . . . .. . ... . . . . . . . ... . . . . . . . . . . . . . . . . 1 2.2 PROCEDURE FOR ANNEXATION .............................. . 1 2 . 3 EFFECT OF ANNEXATION . ............... . .... . ........ . .... . 1 2 . 4 DEANNEXATION AND AMENDMENT . . ........ . ................ . 1 2.5 AMENDMENT ..... . . . .. . ......... . ......... . ............. . XIII MISCELLANEOUS PROVISIONS ............. . ........ . ............. . 1 3.1 TERM OF DECLARATION . . .................. . ..... . ........ . . 1 3.2 CONSTRUCTION OF PROVISIONS ......... . .................... .

13 .3 BINDING .... . ..... . .... . .... . ..... . ..................... . 1 3 .4 SEVERABILITY OF PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3. 5 GENDER. NUMBER AND CAPTIONS ............................ . 1 3. 6 REDISTRIBUTION OF PROJECT DOCUMENTS ..................... . 1 3 . 7 EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3. 8 BONDED OBLIGATIONS ..................................... . 1 3.8 .1 Improvements Complete . . . . .. . . . . . . . . . . . .... . .. . ........ . 1 3. 8.2 Improvements Not Complete . . .. . .. . . . . . . .. . . .... . . . . ... . . . 1 3.8.3 Action by Members . ...... . . ..... . . . .. . . ......... . . .. . . . 1 3 .8.4 Release of Bond . . . . . . . . .. . . . . .. . . . .. . ... . . .. . . . .... . . . 1 3. 9 REQUIRED ACTIONS OF ASSOCIATION ......................... . 1 3.10 SUCCESSOR STATUTES ... . ..... . ........... . ............... . 1 3.11 CONFLICT .......................... . .................... .

1 2 .1 1 2 .1 1 2 .1 1 2 .1 1 2 .1 1 2.1 1 2.1 1 2.2 1 3.1 1 3.1 1 3.1 1 3.1 1 3.1 1 3.1 1 3.1 1 3.1 1 3.1 1 3.1 1 3.1 1 3 . 1 1 3.2 1 3.2 1 3.2 1 3.2

-vi- 0 2/2 2/99 LITTLE & SAPUTO

ATTORNEYS AT I.AW I OLYMPIC BOULEY ARD. 1100

, ALNUT CREEK. CA 94596-5024 (925) 944-5000

DECLARATION OF COVENANTS,

CONDffiONS AND RESTRICTIONS

OF

THE COMMUNITY OF EAGLE RIDGE A Common Interest Development

THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF THE COMMUNITY OF EAGLE RIDGE ("Declaration") is made by EAGLE RIDGE DEVELOPMENT COMPANY, LLC., a California Limited Liability Company, ("Declarant").

1.1

ARTICLE I

INTENTION OF DECLARATION

FACTS: This Declaration is made with reference to the following facts: 1.1 .1 Property Owned bv Declarant: Declarant is the owner of all the real property and

Improvements thereon located in the City of Gilroy, County of Santa Clara, State of California, described as follows:

Lots 1 through 100, inclusive, Lots 1 2 5 and 1 2 6, those parcels shown as Private Streets A through E, inclusive, and those parcels shown as Private Streets G through 0, inclusive, on the subdivision map of Tract 89 6 2 filed for record on November 20, 1 9 9 7, in Book 69 6 of Maps at Pages 2 2 through 4 5, inclusive, in the Official Records of the County of Santa Clara, State of California. 1.1.2 Nature of Project: Declarant intends to develop the Subject Property and the

Additional Property as a Common Interest Development which shall be a planned development as defined in California Civil Code Section 1 35 l (k) . The Project is intended to be created in conformity with the provisions of the Davis-Stirling Common Interest Development Act (California Civil Code, Section 1 350 et seq.). To establish the Project, Declarant desires to impose on the Subject Property, and any property annexed thereto, these mutually beneficial restrictions, easements, assessments and liens under a comprehensive general plan of improvement and development for the benefit of all of the Owners, the Lots and Common Area within the Subject Property and any property annexed thereto.

1.1.3 Phases of PrQject: The Subject Property and the Additional Property are intended to be developed in multiple Phases. The first Phase co11Sists of the Subject Property. Prior to annexation, the Additional Property shall not be subject to any provision of this Declaration. Declarant may, but shall have no obligation to, annex all or any portion of the Additional Property to the Project by recording a Declaration of Annexation in compliance with the provisions of this Declaration.

1.2 APPLICABILITY OF RESTRICTIONS: Pursuant to California Civil Code Sections 1 35 3 and 1 35 4 , Declarant hereby declares that the Project and all Improvements thereon are subject to the provisions of this Declaration. The Project shall be held, conveyed, hypothecated, encumbered, leased, rented, used, occupied and improved subject to the covenants, conditions and restrictions stated in this Declaration. All such covenants, conditions and restrictions are declared to be in furtherance of the plan for the subdivision, development and management of the Project as a Common Interest Development. All of the limitations, easements, uses, obligations, covenants, conditions, and restrictions stated in this Declaration shall run with the Project and shall inure to the benefit of and be binding on all Owners and all other parries having or acquiring any right, title or interest in any part of the Project. After recordation

LITTLE & SAPUTO AITORNEYS AT LAW

901 OLYMPIC BOULEVARD. 1100 WALNUT CREEK. CA 9'591>--5024

(925) 944-5000

1.1 02/22/9 9

ARTICLE II

DEFINITIONS

Unless otherwise defined or unless the context clearly requires a different meaning, the terms used in this Declaration, the Map and any grant deed to a Lot shall have the meanings specified in this Article.

2 . 1 ADDITIONAL CHARGES: The term "Additional Charges" shall mean costs, fees, charges and expenditures, including without limitation, attorneys' fees, late charges, interest and recording and filing fees actually incurred by the Association in collecting and/or enforcing payment of assessments, fines and/or penalties.

2.2 ADDITIONAL PROPERTY: The term " Additional Property" shall mean the real property described on Exhibit "A" attached hereto and all Improvements situated on such real property . 2.3 ALTERATION: The term "Alteration" shall mean constructing, performing, installing, remodeling, repairing, replacing, demolishing, and/or changing the color or shade of any Improvement. 2.4 ARTICLES: The term " Articles" shall mean the Articles of Incorporation of The Community

of Eagle Ridge Owners' Association, which are or shall be filed in the Office of the Secretary of State of the State of California.

2 . 5 ASSOCIATION: The term "Association" shall mean The Community of Eagle Ridge Owners' Association, its successors and assigns, a nonprofit mutual benefit corporation incorporated under the laws of the State of California.

2 . 6 BOARD: The term "Board" shall mean the Board of Directors of the Association. 2. 7 BUDGET: The term "Budget" shall mean a pro forma operating budget prepared by the

Board in accordance with Section 6.7.1 of this Declaration. All references to "Budget" shall include the Project Budget and, with respect to any Lot situated in a Village, the Village Budget for that Village, unless otherwise specified.

2.8 BUILDER: The term "Builder" shall mean an Owner who (i) is designated as a Builder by Declarant in a writing delivered to the Association, and (ii) acquires from Declarant at least five ( 5) Lots prior to the completion of construction of Residences on those Lots. A Builder may also be a Declarant if the provisions of Section 2.1 4 are satisfied.

2.9 BYLAWS: The term "Bylaws" shall mean the Bylaws of the Association and any amendments thereto.

2.1 0 QIY: The term "City" shall mean the City of Gilroy, California. 2.1 1 COMMON AREA: The term "Common Area" shall mean Lots 1 2 5 and 1 2 6 , those parcels shown as Private Streets A through E, inclusive, and those parcels shown as Private Streets G through O,

inclusive, on the Map. The term "Common Area" shall also mean any property described as Common Area in a Declaration of Annexation and any real property estate or interest owned by the Association. Common Area includes all Improvements situated thereon or therein.

2.1 2 COUNTY: The term "County" shall mean the County of Santa Clara, State of California. 2.1 3 COURSE OWNER: The term "Course Owner" shall mean the holder or holders of record

fee title to the Golf Course. 2.1 4 DECLARANT: The term "Declarant" shall mean Eagle Ridge Development Company,

LLC., a California Limited Liability Company. The term "Declarant" shall also mean any person or entity if (i) a certificate , signed by Declarant and such person or entity has been recorded in the County in which

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of a Declaration of Annexation, the property described therein shall constitute a part of the Project and shall be subject to this Declaration.

1.3 RELATIONSHIP TO GOLF COURSE: Declarant intends to develop property adjacent to the Common Area and Lots as a Golf Course. Declarant presently anticipates that the Golf Course will include but not be limited to an eighteen (1 8 ) hole Golf Course, a driving range, putting green, golf cart paths, clubhouse, tennis and golf pro shops , locker room facilities, food and beverage facilities and other related facilities. Declarant is the present owner of the Golf Course and the Golf Course is not part of the Common Area or of the Project. The Golf Course is separate and distinct from the Association and the Project and is governed by its own rules, regulations and requirements. The Golf Course has rights to use portions of the Common Area pursuant to and in accordance with the terms and provisions contained in this Declaration and in the grant deeds by which Common Area is conveyed to the Association. Neither the Association nor any Owner shall have any rights in or privileges to the Golf Course by virtue of this Declaration or the location of the Golf Course. The Golf Course, if completed as presently contemplated, is intended to be open to the public. However, it is possible that the Golf Course may be private in the future. If so, membership in the Golf Course may be made available to Owners; however, no Owner is entitled to membership in the Golf Course, or any other private facility operated within the overall Project.

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such person or entity assumes the rights and duties of Declarant to some portion of the Subject Property or the Additional Property, or (ii) such person or entity acquires all of the Subject Property and all of the Additional Property then owned by a Declarant which must be more than one (1) Lot. There may be more than one Declarant at any given time.

2.1 5 DECLARATION: The term "Declaration" shall mean this Declaration of Covenants, Conditions and Restrictions of The Community of Eagle Ridge and includes any subsequently recorded amendments.

2.1 6 DECLARATION OF ANNEXATION: The term "Declaration of Annexation" shall mean any instrument recorded in the County which extends the provisions of this Declaration to all or a portion of the Additional Property or any other property.

2.1 7 DELEGATE: The term "Delegate" shall mean a Member who is elected by the Members of a District to be the Delegate of that District. 2.1 8 DISTRICT: The term "District" shall mean a geographic area identified in this Section or in a Declaration of Annexation. Each Declaration of Annexation may establish a new District or may add

to an existing District. The Subject Property described in Section 1.1.1 , above, is hereby identified as District I. A Declaration of Annexation may add additional Lots to District I.

2 .1 9 EXEMPT PARCEL: The term "Exempt Parcel" shall mean each portion of the Additional Property which is described in a Declaration of Annexation as an Exempt Parcel. 2.20 FIRST MORTGAGE: The term "First Mortgage" shall mean a Mortgage which has priority under the recording statutes of the State of California over all other Mortgages encumbering a specific Loe 2.21 FIRST MORTGAGEE: The term "First Mortgagee" shall mean the Mortgagee of a First Mortgage. The term "First Mortgagee" shall also include an insurer or governmental guarantor of a First

Mortgage including, without limitation, the Federal Housing Authority and the Department of Veteran's Affairs.

2.2 2 FUEL TRANSITION ZONE: The term "Fuel Transition Zone" shall mean those portions of the Common Area and the Golf Course which consist of an irrigated strip of land thirty (3 0) feet wide, measured from the Lot boundary which is common to (i) the Lot and Common Area or (ii) the Lot and the Golf Course.

2.23 GOLF COURSE: The term "Golf Course" shall mean Lots 1 01 through 1 1 2 , inclusive, as shown on the Map, all Improvements situated on such real property, all real property described as "Golf Course" in a Declaration of Annexation whether or not the property being described as "Golf Course" is described as part of the Additional Property and all Improvements situated on such real property. The term "Golf Course" shall also (i) include any land added to the real property defined in this Declaration as "Golf Course" and (ii) exclude any land removed from the real property defined in this Declaration as "Golf Course" by any alteration shown on any subsequently recorded final rnap(s), amended final map(s), parcel map(s) , certificate(s) of correction, lot line adjustment(s) and /or record(s) of survey which affects the boundaries of the real property described in this Declaration as or in a Declaration of Annexation as "Golf Course".

2.2 4 IMPROVEMENTS: The term "Improvements" shall mean everything constructed, installed or planted on real property, including without limitation, buildings, streets, fences , walls, paving, pipes, wires, grading, landscaping and other works of improvement as defined in Section 31 0 6 of the California Civil Code, excluding only those Improvements or portions thereof which are (i) dedicated to the public or a public or quasi-public entity or utility company, and accepted for maintenance by the public, such entity or utility company, (ii) owned and maintained by the Golf Course or (iii) owned and maintained by the Course Owner.

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2.2 5 INVITEE: The term "Invitee" shall mean any person whose presence within the Project is approved by or is at the request of the Association or a particular Owner, including, but not limited to, lessees, tenants, and the family, guests, employees, licensees or invitees of Owners, tenants or lessees.

2.2 6 LQI: The term "Lot" refers to a Separate Interest as defined in California Civil Code Section 1 35 1 (1) and shall mean Lots 1 through 100, inclusive, as shown on the Map. The term "Lot" shall also mean any Lot described as such in a Declaration of Annexation. Lot includes all Improvements situated thereon or therein.

2.2 7 MAP: The term "Map" shall mean the subdivision map of Tract 8 9 6 2 recorded on November 2 0, 1 9 97, in Book 6 9 6 of Maps at Pages 2 2 through 45 , inclusive, in the Official Records of the County, including any subsequently recorded amended final maps, parcel maps, amended parcel maps, certificates of correction, lot line adjustments and/or records of survey. The term "Map" shall also mean any recorded subdivision map described in a Declaration of Annexation.

2.2 8 MEMBER: The term "Member" shall mean an Owner. 2.2 9 MORTGAGE: The term "Mortgage" shall mean any duly recorded mortgage or deed of trust

encumbering a Lot. 2.30 MORTGAGEE: The term "Mortgagee" shall mean a Mortgagee under a Mortgage as well

as a beneficiary under a deed of trust. 2.31 NOTICE AND HEARING: The term "Notice and Hearing" shall mean the procedure which

gives an Owner notice of an alleged violation of the Project Documents and the opportunity for a hearing before the Board.

2.32 OWNER: The term "Owner" shall mean the holder of record fee title to a Lot, including Declarant as to each Lot owned by Declarant. If more than one person owns a single Lot, the term "Owner" shall mean all owners of that Lot. The term "Owner" shall also mean a contract purchaser (vendee) under an installment land contract but shall exclude the contract vendor and any person having an interest in a Lot merely as security for performance of an obligation.

2.33 PARTY FENCE: The term "Party Fence" shall mean any portion of a fence which is constructed and placed so as to physically separate one ( 1 ) Lot from another Lot, whether the fence is situated approximately along a common Lot boundary or an easement boundary.

2.34 PHASE: The term "Phase" shall mean any Lot(s) and/or Common Area which is made subject to the provisions of this Declaration either by recording this Declaration or by recording a Declaration of Annexation.

2.35 PROJECT: The term "Project" shall mean the Subject Property and any property described in a Declaration of Annexation.

2.36 PROJECT COMMON AREA: The term "Project Common Area" shall mean any real property within the Project which is owned and managed by a Subassociation. 2.37 PROJECT DOCUMENTS: The term "Project Documents" shall mean the Articles, Bylaws,

this Declaration and the Rules. 2.38 PUBLIC REPORT: The term "Public Report" shall mean a Final Subdivision Public Report issued by the Department of Real Estate of the State of California for one or more Phases of the Project. 2.39 RESIDENCE: The term "Residence" shall mean a dwelling situated on a Lot, including any

garage also situated on a Lot. 2.4 0 RULES: The term "Rules" shall mean the rules adopted by the Board, including architectural

guidelines, restrictions and procedures.

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2. 41 SUBASSOCIATION: The term "Subassociation" shall mean a nonprofit mutual benefit corporation incorporated under the laws of the State of California to manage a common interest development which (i) is located within the boundaries of the Project, (ii) consists of less than all of the property which then comprises the Project and (iii) is governed by a Subassociation Declaration.

2.42 SUBASSOCIATION DECLARATION: The tenn "Subassociation Declaration" shall mean any declaration which (i) satisfies the requirements of Section 1 3 5 3 of the Civil Code of the State of California and (ii) provides for a Subassociation.

2.4 3 SUBJECT PROPERTY: The term "Subject Property" shall mean Lots 1 through 100, inclusive, Lots 1 2 5 and 126 , those parcels shown as Private Streets A through E, inclusive, and those parcels shown as Private Streets G through 0, inclusive, on the Map and all Improvements thereon .

2.4 4 VILLAGE: The term "Village" shall mean any group of Lots which i s designated as a "Village" in a Declaration of Annexation. A Village may also be a Subassociation. 2.4 5 VILLAGE MAJNTAINED AREA: The term "Village Maintained Area" shall mean any portion of the Project which is designated as a "Village Maintained Area" in a Declaration of Annexation.

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ARTICLE III

OWNERSHJP AND EASE:MENTS

3 .1 NON-SEVERABILITY: The interest of each Owner in the use and benefit of the Common Area shall be appurtenant to the Lot owned by the Owner. Any conveyance of any Lot shall automatically transfer the right to use the Common Area without the necessity of express reference in the instrument of conveyance. The ownership interests in the Common Area and Lots described in this Article are subject to the easements described, granted and reserved in this Declaration. Each of the easements described, granted or reserved herein shall be established upon the recordation of this Declaration and shall be enforceable as equitable servitudes and covenants running with the land for the use and benefit of the Owners and their Lots superior to all other encumbrances applied against or in favor of any portion of the Project.

3.2 OWNERSHIP OF LOTS : Title to each Lot in the Project shall be conveyed in fee to an Owner. The Association, Declarant or the Course Owner who receives title to any portion of a Lot which is transferred by the Owner as a result of subsequently recorded final maps, amended final maps, parcel maps, amended parcel maps, certificates of correction, lot line adjustments and/or records of survey shall take such property free and clear of any requirement that such land be devoted to use as a Lot. Upon conveyance, such land may be used for any purpose for which land adjacent to it may be used. Any land which is added to a Lot as a result of subsequently recorded final maps, amended final maps, parcel maps, amended parcel maps, certificates of correction, lot line adjustments and/or records of survey shall be deemed, for all purposes of this Declaration, to be part of the Lot to which it is added.

3.3 OWNERSHIP OF COMMON AREA: Title to or a legal ownership interest in the Common Area shall be conveyed to the Association.

3. 3 .1 Acceptance of Common Area: The Association shall be deemed to have accepted the Common Area conveyed to it when (i) a grant deed conveying title to the Common Area has been recorded in the Official Records of the County and (ii) assessments for the Phase in which the Common Area is located have commenced.

3.3.2 Transfers of Common Area: The Board shall have the authority to transfer fee interests in the Common Area to an Owner, or to the Course Owner when, in its reasonable discretion, it finds such transfer appropriate to eliminate encroachment of Golf Course improvements on the Common Area, to conform boundaries to the natural contour of the land for purposes of permitting or promoting an efficient division of maintenance responsibilities between the Owners, the owner of the Golf Course and the Association and for similar purposes.

3. 3. 3 Consent of City: Notwithstanding any other provision of this Declaration, no portion of the Common Area over which the City has rights as a third party beneficiary pursuant to this Declaration may be redesignated as something other than Common Area without the consent of the City . Any attempt to do so shall be void and of no force or effect. However, any transfer which occurs pursuant to a final map, an amended final map, a parcel map, an amended parcel map, a certificate of correction, a lot line adjustment or a record of survey which was approved by the City shall be deemed to have been approved by the City for purposes of this Section as well.

3.4 OWNERSHIP OF PROJECT COMMON AREA: Project Common Area shall be owned by a Subassociation.

3.5 OWNERSHIP OF PARTY FENCES: Each Owner of a Lot upon which a Party Fence is situated shall own that portion of the fence from the surface which faces the Owner's Lot up to the center of the Party Fence.

3.6 EASEMENTS : The easements and rights specified in this Article are hereby created and shall exist whether or not they are also set forth in individual grant deeds to Lots.

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3.6.1 Easements On Map: The Common Area and Lots are subject to the easements and rights of way shown on the Map. 3.6.2 Easements For Common Area: Every Owner shall have a non-exclusive right and easement for the ingress, egress, use and enjoyment of the Common Area which shall be appurtenant to

and shall pass with the title to every Lot, subject to the following provisions: (a) The right of the Board, after Notice and Hearing, to suspend an Owner's right to

use any recreational facilities; (b) The right of the Association to grant, convey and dedicate fee title to or easements

over all or any portion of the Common Area; (c) Any easement which affects the Common Area or which is set forth in the deed

which conveys the Common Area to the Association; ( d) The easements and rights reserved to Declarant or otherwise granted in this

Declaration; and (e) The easements and rights reserved and granted to the Golf Course (i) prior to the

recordation of this Declaration, (ii) in this Declaration and (iii) in the deeds by which the Common Area or an interest in the Common Area was conveyed to the Association.

3.6.3 Partv Fences: Each Owner of a Lot containing a Party Fence shall have a reciprocal non-exclusive easement over and across such portions of the contiguous Lot as are necessary to maintain the Party Fence.

3.6.4 Mailboxes: Each Owner whose mailbox is located on a Lot other than that Owner's Lot shall have a non-exclusive easement for the use, maintenance, repair and replacement of the mailbox over those portions of the Lot on which the mailbox is located.

3.6.5 Utilities: Each Lot and the Common Area shall be subject to all easements granted by Declarant for the installation and maintenance of drainage facilities, master television antenna or cable systems, wired and wireless communications systems, security and similar systems, and all utilities, including but not limited to sanitary sewer, drainage systems, storm drainage systems, retention ponds, electrical, gas, telephone , and potable and non-potable water necessary or appropriate for the development of the Project or the Golf Course. Each Owner shall have a non-exclusive right and easement over, under, across and through the Project, except for portions of the Project on which a structure is situated , for utility lines , pipes, wires and conduits installed by Declarant.

3.6.6 Storm Drains: Tnere are reserved and granted for the benefit of each Lot and the Common Area, over, under , across and through the Project, except for portions of the Project on which a structure is situated, non-exclusive easements for surface and subsurface storm drains and the flow of storm waters in accordance with natural drainage patterns and the drainage patterns and Improvements installed or constructed by Declarant.

3 .6. 7 Encroachment: Non-exclusive rights and easements are reserved and granted (i) for the benefit of each Lot, as dominant tenement, over, under and across each other Lot and the Common Area, as servient tenements, and (ii) for the benefit of the Common Area, as dominant tenement, over, under and across each Lot, as servient tenement. Such easements shall be for the purposes of encroachment, support, occupancy and use of such portions of Lots and/or Common Area as shall be encroached upon, used and occupied by the dominant tenement as a result of any original construction design, accretion, erosion, deterioration, decay, errors in original construction, movement, settlement, shifting or subsidence of any building or structure or any portion thereof. If any portion of the Project is partially or totally destroyed, the encroachment easement shall exist for any replacement structure which is rebuilt pursuant to the original construction design. The easement for maintenance of the encroaching Improvement shall exist for as long as the encroachment exists; provided, however , that no easement for

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encroachment shall be created due to the willful misconduct of the Association or any Owner. Any easement for encroachment may but need not be cured by repair or restoration of the Improvement. 3.6.8 Support, Maintenance and Repair: The Association and each Owner shall have a non-exclusive right and easement appurtenant to the Common Area and to all Lots through each Lot and

the Common Area for the support, maintenance and repair of the Common Area and all Lots. 3. 6. 9 Golf Course Easements: The easements and rights specified in this Section 3 . 6. 9 are hereby created for the benefit of the Golf Course, Course Owner and all invitees of Course Owner

whose presence at the Golf Course is at the request of or approved by Course Owner and shall exist whether or not such easements are also set forth in individual grant deeds conveying Lots, Common Area or the Golf Course. All easements shall be appurtenant to the Golf Course and shall be binding upon the successors in interest and assigns of the owners of both the dominant and servient tenements. No easement set forth in this Section shall be construed to act as a limitation upon the ability of Golf Course or Course Owner to hold tournaments and banquets and other social gatherings from time to time and to provide whatever temporary services and facilities are deemed appropriate by Course Owner in connection with such activities , including but not limited to, parking and storage on Common Areas.

(a) Golf Course Overspray and Intrusion Easement: There is reserved for the benefit of the Golf Course, the Course Owner. and its Invitees a non-exclusive right and easement appurtenant to the Golf Course for purposes of overspray in connection with the watering of the Golf Course, for the intrusion of golf balls from the fairways, roughs and greens thereof and for the retrieval of golf balls . Any person or entity for whose benefit the right and easement for overspray and intrusion is reserved shall not be liable to any Owner or the Association for any damage to person or property occasioned by such overspray or intrusion unless occasioned by the intentional act of such person. The rights and easements reserved by this Section shall be for the benefit of Declarant and the Course Owner and for the benefit of their employees, contractors, agents , guests , invitees, licensees or members (collectively referred to as .. beneficiaries"). Each Owner of a Lot acknowledges and agrees that owning property adjacent to a.Golf Course has benefits as well as detriments and that the detriments include the risk of damage to property or injury to persons and animals from overspray and golf balls or from players retrieving golf balls. Each Owner hereby assumes such risks, releases Declarant and the beneficiaries from and agrees to indemnify Declarant and the beneficiaries and hold Declarant and .the beneficiaries harmless from and against any and all liability for damage or injury caused by golf balls which intrude in, on or around the Owner' s Lot or Residence.

(b) Utilities Easements : The Golf Course shall have and is hereby granted nonexclusive easements over, under, through and across the Common Area for the purposes of installing, maintaining, repairing and replacing, and using master television antenna or cable systems , wired and wireless communication systems, security and similar systems, and all permanent and temporary utilities , including but not limited to sewers, drainage systems, storm drainage systems, retention ponds, electrical, gas, telephone, and water necessary or appropriate for the development or operation of the Golf Course, including tournaments held at the Golf Course.

(c) Ingress and Egress Easement : The Golf Course shall have and is hereby granted a non-exclusive appurtenant easement over and across the Common Area, including the main entry gate and private streets, for the purposes of ingress to and egress from the Golf Course by Golf Course maintenance vehicles , and vehicles, pedestrians and bicycles using or visiting the Golf Course. Neither the Association nor any Subassociation may unreasonably restrict rights of ingress and egress to the Golf Course. The Association and the Subassociations may not impose any restrictions, limitations or requirements for entry into the Golf Course which are not imposed and enforced against all Owners and Invitees. If vehicle passes are issued to Association's Members for entry through the main entrance gate, they must be made available to the owner of the Golf Course and its licensees and members on the same terms as they are made available to Association's members. The Board may make reasonable Rules relating to the right of entry through the main entrance gate, but none discriminating against or restricting entry by Owners, Invitees, prospective purchasers of Lots invited by Declarant or an Owner, the owner of the Golf Course or its members or licensees. As full and complete compensation for use by the Course

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Owner and its invitees, and maintenance by the Association of the servient tenements, the Course Owner shall pay to Association a share of Association' s costs and expenses as set forth in Section 6.2.2 (b)(i) of this Declaration.

(d) General Easements Onto Common Area: The Golf Course shall have and is hereby granted a non-exclusive appurtenant easement over and across the Common Area for the following purposes: (i) use and enjoyment of the golf cart paths by Golf Course maintenance vehicles and vehicles and pedestrians using the Golf Course located within the Golf Course, provided however, no golf cart path shall be constructed on any portion of a Lot, (ii) constructing, maintaining, repairing and replacing pedestrian and golf cart paths and directional signs related to the Golf Course located within the Golf Course, (iii) maintaining any lake, pond, wetland area, waterway, or other body of water and mowing and removing unsightly brush, and (iv) permitting registered Golf Course players and their caddies to enter to retrieve golf balls in accordance with the rules of the game of golf (any such entry shall be limited to pedestrian access for the minimum period of time required to retrieve golf balls).

(e) Easements To Facilitate Tournaments: The Golf Course shall have and is hereby granted a non-exclusive easement over and across the Common Area appurtenant to the Golf Course for all purposes reasonably necessary to hold and conduct tournament play at the Golf Course including without limitation, ingress and egress by vehicular and pedestrian traffic, parking, utility services, directional signs, traffic control and other related uses. During such periods, Golf Course shall have the right to take all reasonable actions which are appropriate for holding such an event. Golf Course is solely responsible for all additional costs incurred as a result of the tournament and shall repair any damage caused to the Common Area as a result of the tournament. The Association shall have no right to prohibit or impair the ability of the Course Owner to take any and all reasonable actions which are appropriate for holding a tournament.

(f) Additional Easements: The Golf Course and its duly authorized agents and representatives shall have a non-exclusive right and easement as is necessary or appropriate to the exercise of any rights granted to Golf Course or to the Course Owner by this Declaration, including the right to enter upon Lots and Common Area, subject to the limitations contained in this Declaration.

3 .6.10 Sign Easements: The Golf Course shall have and is hereby granted a non-exclusive easement over and across the Common Area appurtenant to the Golf Course for the purposes of locating, establishing, maintaining, repairing, replacing and lighting all of its signs permitted pursuant to Section 4. 2 1 of this Declaration.

3.6.11 Right to Photograph: Declarant and the Course Owner each hereby reserves a non-exclusive easement and right in gross to display, use and distribute for any and all purposes photographs, video recording and similar reproductions of all Residences and Improvements constructed anywhere in the Project.

3.6.1 2 Exempt Parcels: There is reserved for the benefit of each owner of an Exempt Parcel, and its successors and assigns, a non-exclusive right and easement appurtenant to the Exempt Parcel, for ingress and egress by the owner of the Exempt Parcel and its invitees, licensees, guests and employees, including access by vehicles, through the main entrance gate and over, upon and across the private streets situated within the Common Area. The Association may not restrict rights of ingress and egress to the Exempt Parcels or impose any restrictions, limitations or requirements for entry into the Project through the main entrance gate which are not imposed and enforced against all Owners, residents and Invitees. If vehicle passes are issued to residents for entry through the main entrance gate, they must be made available to each owner of an Exempt Parcel and their invitees, licensees and members on the same terms as they are made available to residents. As full and complete compensation for use of the main entrance gate and private streets in the Project, each owner of an Exempt Parcel shall pay to the Association a share of the Association's costs and expenses of maintaining the private streets, the main entrance gate and of employing main entrance gate attendants, as set forth in Section 6.2.2 (c), below. Notwithstanding the foregoing, the right to regular and continuous access through the main entrance gate to an Exempt Parcel shall not commence until such time as the Exempt Parcel (i) is annexed to the Project and (ii) begins making regular payments to the Association in accordance with Section 6.2.2 (c) , below.

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3 . 6.1 3 Easement to Governmental Entities: All governmental and quasi-governmental entities, agencies and utilities and their agents shall have a non-exclusive easement over the Common Area for the purposes of performing their duties within the Project.

3.6.14 Association's Easements: The Association and its duly authorized agents and representatives shall have a non-exclusive right and easement as is necessary to perform the duties and obligations of the Association set forth in the Project Documents, including the right to enter upon Lots, subject to the limitations contained in this Declaration.

3.6.1 5 Additional Easements: Notwithstanding anything expressed or implied to the contrary, this Declaration shall be subject to all easements granted by Declarant for the installation and maintenance of utilities and drainage facilities necessary for the development of the Project.

3.6.1 6 Easement to Declarant For Adjoining Property: Declarant shall have, and hereby expressly reserves, a right and easement over and across the Common Area for the purposes of reasonable ingress to and egress from, over and across the Project, including private roads and pathways, to the Additional Property until all of the Additional Property is annexed to the Project.

3.6.1 7 Annexation of Additional Property: Upon the recordation of a Declaration of Annexation, the Lots and the Owners of Lots in the annexed Phase shall have all of the rights and easements specified in this Article and the Lots and the Owners of Lots in the Project prior to annexation shall have all of the easements specified in this Article as though the annexed Phase were initially part of the Project.

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ARTICLE IV

USES AND RESTRICTIONS

4.1 ALTERATIONS: Except as otherwise specifically provided in this Declaration, no Alteration may be made to any Improvement until plans have been submitted and approved pursuant to Article XI. 4.2 ANIMALS: An Owner may keep two ( 2 ) customarily uncaged household pets within the Owner's Lot. Each Owner may also maintain a reasonable number of small caged animals, birds or fish.

Unless the Rules increase the number or type of animals which may be kept, no other animals or pets are permitted in the Project. The Board shall have the right to prohibit the maintenance of any pet which, after Notice and Hearing, is found to be a nuisance to other Owners. No animals may be kept for commercial purposes. No dog shall be allowed in the Common Area unless it is under the control of a responsible person by leash or other means. Each Owner or Invitee shall restore the Common Area to the condition it was in immediately preceding its use by any dog permitted on the Common Area by the Owner or Invitee.

4.3 ANTENNAS AND SATELLITE DISHES: No outside television antenna, microwave or satellite dish, aerial, or other such device (collectively "Video Antennas") with a diameter or diagonal measurement in excess of one ( 1 ) meter shall be erected , constructed or placed on any Common Area or Lot. Video antennas with a diameter or diagonal measurement of one (1 ) meter or less may be installed only if they conform to the Architectural Standards and, if then required by the Architectural Standards, any necessary approval is obtained in accordance with the provisions of Article XI. Reasonable restrictions which do not significantly increase the cost of the Video Antenna system or significantly decrease its efficiency or performance may be imposed.·

4.4 APPEARANCE OF GOLF COURSE: Each Owner acknowledges and agrees that the Owner, the Association and any Subassociation shall not have any right to compel the Course Owner or the owner of the Golf Course to maintain the Golf Course or any improvements thereon to any particular standard of care and that the appearance of the Golf Course and improvements shall be determined in the sole discretion of the Course Owner.

4.5 DRAINAGE: No Owner shall impede, alter or otherwise interfere with the drainage patterns and facilities in the Project until plans have been submitted and approved pursuant to Article XI and approved by any public authority having jurisdiction thereof. This Declaration provides notice that many Lots were carefully graded by Declarant to provide positive drainage to a common drainage system. Positive drainage is achieved by shaping and cutting drainage swales or channels in the ground. These swales are engineered progressively lower than the adjoining surface ground areas on the Lot and provide a receptacle and conduit to drain water away from foundations and into the streets or Project storm drainage system. Swales also help to prevent surface drainage water from flowing to adjacent Lots. All drainage on each Lot must flow away from the foundation of the Residence, must tie into the common drainage system and may not drain onto the Golf Course unless expressly approved by the Golf Course Owner. Each Residence must have a roof gutter system and downspouts which are directly connected to the Project's storm drainage system or piped through .. the curbs into the streets and the Owner of the Residence may not construct or alter a Residence or install landscaping in any manner which results in additional roof waters draining anywhere other than directly into such pipes or the Project ' s storm drainage system.

4.6 ENGINEERING REQUIRED: No Owner shall grade or fill or otherwise alter the slope or contour of any Lot, as established by Declarant, without first retaining a soils engineer or civil engineer, as appropriate, licensed by the State of California, and receiving from such engineer written recommendations, plans and specifications regarding such proposed grade, fill and/or alteration. No Owner shall perform any such grade, fill or alteration except in conformity with the recommendations, plans and specifications of such engineer. In addition, the Owner shall also obtain prior approval in

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accordance with the provisions of Article XI of this Declaration and shall comply with all applicable City requirements.

4. 7 EXTERIOR LIGHTING: No Owner shall remove, damage or disable any exterior light, regardless of where located, which is connected to the Association's electric service. 4.8 FENCING:

4.8.1 Adjacent to Golf Course: Except for fencing originally constructed or approved by Declarant, there shall be no fencing constructed, maintained or placed (i) on any portion of the Project which adjoins the Golf Course, (ii) on any portion of the Common Area or (iii) on any portion of the Project which, in the judgement of the Course Owner, unreasonably interferes with the view from the Golf Course. For purposes of the preceding sentence, fencing includes fences, walls, netting, and other similar barriers, including landscaping. Any fencing approved in writing by the Course Owner shall be deemed to not be in violation of this Section.

4.8.2 Other Fences: All fences within the Project must conform to the overall project fencing plan contained in the Architectural Design Guidelines. 4.8.3 "Spite" Fences: Any perimeter fence on a Lot which is constructed parallel to any

portion of an existing fence must maintain a minimum ten ( 10) foot horizontal separation. 4.9 GOLF COURSE AREAS: Owners and their Invitees shall not engage in any action which

would distract from the playing quality of the Golf Course while in any area which is adjacent to a Golf Course area. Such actions include but are not limited to burning materials where the smoke will cross the Golf Course, maintaining pets which are creating excess noise, playing loud radios, stereos, televisions or musical instruments, running, walking , jogging, bicycle riding, or skateboarding on the fairways or golf cart paths, picking up golf balls or otherwise interfering with play.

4.10 GOLF CART PATHS: Portions of the golf cart path system may be situated on the Common Area or on Project Common Area. No Owner or Invitee shall have any right to use any portion of the golf cart path system, including any portion situated on the Common Area or Project Common Area without the prior approval of the owner or manager of the Golf Course. All golf cart paths shall be maintained, repaired and replaced by the Course Owner.

4.1 1 GOLF TOURNAMENTS: From time to time, the Golf Course may be used for tournament play. At such times, vehicular and pedestrian traffic within the Project is likely to increase substantially as persons who will play in the tournament as well as persons who will watch the tournament will be invited, the broadcast media and their equipment may be present, additional parking , utility and sanitary services, food and beverage services, program and souvenir sales, directional signs, traffic control, security, clean-up crews and other similar services may be necessary or appropriate. During all such periods, the Course Owner shall have the right to take all reasonable actions which are appropriate for holding such an event as long as the Course Owner is responsible for all additional costs incurred as a result of the tournament, including repairing any damage caused to the Common Area as a result of the tournament. The Association shall have no right to prohibit the Course Owner from taking any and all reasonable actions which are appropriate for holding a tournament.

4.1 2 ENTRY ONTO GOLF COURSE: The Association, all Subassociations and all Owners shall have no right of entry onto the Golf Course without the prior written consent of the owner of the Golf Course. All permitted entry shall be made only through entry points designated by Golf Course; no Owner may access the Golf Course or the Golf Course from any adjacent residential Lot. The Association, the Subassociations and all Owners shall not permit any irrigation water to overspray or drain from Common Area, Project Common Area or any Lot onto any portion of the Golf Course without approval of the Course Owner. The Association, the Subassociations and all Owners shall not permit any fertilizer, pesticides or other chemical substances to overspray, drain, flow or be disposed of in any manner upon the Golf Course. If the Association, Subassociation or any Owner violates the provisions of this Section,

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it shall be liable to the owner of the Golf Course for all damages to the turf resulting from the violation and all damages, including consequential damages, suffered by the Course Owner.

4 . 1 3 INVITEES: Each Owner shall be responsible for compliance with the provisions of the Project Documents by that Owner 's Invitees. An Owner shall promptly pay any Reimbursement Assessment levied and/or any fine or penalty imposed against an Owner for violations committed by that Owner' s Invitees.

4.1 4 LIQUQR SALES: The Golf Course may be used for the sale of liquor to be consumed onsite and/or off-site. In addition, special event liquor licenses and other permits may be obtained for activities within the Project from time to time. Special event liquor licenses for events held within Common Area or for events which utilize Common Area, other than entry through the main entrance gate and access over the private streets, are subject to the approval of the Board; the Board shall have sole and absolute discretion to determine whether to grant approval of any request. By acceptance of a deed to a Lot, each Owner agrees not to contest any application for a liquor license to be used for the sale of liquor within the Golf Course and not to object to any special event liquor licenses applied for or issued from time to time.

4.1 5 MINERAL EXPLORATION: No Lot, Project Common Area or Common Area shall be used to explore for or to remove any oil, hydrocarbons or minerals of any kind without the approval of the Board and then only if permitted by local ordinances. No Owner other than Declarant and neither the Association nor any Subassociation may drill , establish or operate any water well anywhere in the Project .

4.1 6 OWNERSHIP OF PROPERTY NEAR A GOLF COURSE: By acceptance of a deed to a Lot, each Owner acknowledges and agrees that owning property adjacent to a Golf Course has benefits as well as detriments and that the detriments include (a) the risk of damage to property or injury to persons and animals from golf balls which are hit onto an Owner ' s Lot or other portion of the Project utilized by the Owner , (b) the entry by golfers onto Owner 's Lot or other portions of the Project utilized by the Owner to retrieve golf balls, (c) overspray in connection with the watering of the roughs, fairways and greens on the Golf Course, (d) noise from Golf Course maintenance and operation equipment (including, without limitation, irrigation systems, compressors, blowers, mulchers, tractors, utility vehicles and pumps, all of which may be operated at all times of the day and night and/or continuously), (e) odors arising from irrigation and fertilization of the turf siruated on the Golf Course, (f) disrurbance and loss of privacy resulting from golf cart traffic and golfers and (g) noise, vehicular and pedestrian traffic, congestion and loss of privacy as a result of tournaments , banquets and other social events held on the Golf Course. Additionally, each Owner acknowledges that pesticides and chemicals may be applied to the Golf Course throughout the year and that reclaimed water, treated waste water or other sources of non-potable water may be used for irrigation of the Golf Course. Each Owner expressly assumes such detriments and risks and agrees that neither Declarant, the owner or manager of the Golf Course, nor any of their successors or assigns shall be liable to the Owner or anyone claiming any loss or damage, including, without limitation, indirect , special or consequential loss or damage arising from personal injury, destruction of property, trespass or any other alleged wrong or entitlement to remedy based upon, due to, arising from or otherwise related to the proximity of the Owner 's Lot or Residence to the Golf Course, including, without limitation, any claim arising in whole or in part from the negligence of Declarant, the manager or owner of the Golf Course, or their successors or assigns. Each Owner hereby agrees to indemnify and hold harmless Declarant and the Course Owner, manager of the Golf Course, and their respective successors and assigns, against any and all such claims by Owner's Invitees. By acceptance of a deed to a Lot, each Owner specifically covenants and agrees that he or she will specifically disclose the existence and contents of this Section to his or her subsequent transferees.

4.1 7 PARKING: Vehicles shall not be parked anywhere in the Project except in areas designed and established for the parking of passenger motor vehicles ("Parking Areas") or wholly within garages or upon public streets. All Parking Areas shall be used solely for the parking of motor vehicles used for personal transportation. No boat, trailer, camper , commercial vehicle , mobile home, recreational vehicle or any inoperable vehicle shall be parked or stored in any Parking Area. Unless otherwise provided for in the Rules, garage doors shall remain closed, except when the garage is in use. Garages shall be kept

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sufficiently clear so as to permit parking of the number of vehicles for which the garage was designed. No part of the Common Area shall be used for repair, construction or reconstruction of any vehicle. No resident in the Project shall park in any Parking Area designated as "guest parking" . As long as applicable ordinances and laws are observed, including the requirements of Section 2 2 6 5 8 . 2 of the California Vehicle Code, any vehicle which is in violation of this Declaration may be removed.

4.1 8 RECLAIMED WATER: The irrigation lines installed by Declarant for the Golf Course, Common Area or Project Common Area may use reclaimed water which may produce an offensive odor. The Course Owner, the Association and any Subassociation are each permitted to use reclaimed water to irrigate landscaping on the Golf Course, Common Area and Project Common Area.

4.1 9 RENTAL OF LOTS: An Owner shall be entitled to rent or lease a Lot, if : (i) there is a written rental or lease agreement specifying that the tenant shall be subject to all provisions of the Project Documents and a failure to comply with any provision of the Project Documents shall constitute a default under the agreement; (ii) the period of the rental or lease is not less than thirty ( 30 ) days; (iii) the Owner gives notice of the tenancy to the Board and has otherwise complied with the terms of the Project Documents; and (iv) the Owner gives each tenant a copy of the Project Documents. Upon satisfaction of the foregoing conditions all rights to the use and enjoyment of the Common Area shall be exercised by the tenant rather than by the Owner of the leased or rented Lot; however, the Owner shall not be relieved of the obligations and duties imposed by this Declaration.

4.20 RULES: The Board may promulgate Rules concerning the use of the Project by Owners, occupants and their Invitees. The Board shall have the right to limit use of any recreation facilities to occupants within the Project and their Invitees and may further limit the number of each occupant's Invitees that may use any recreational facilities. Neither an Owner nor its Invitees shall violate any provision of this Declaration, the Bylaws or the Rules as the same may be amended from time to time.

4.21 SIGNS: All signs displayed in the Project shall be attractive and compatible with the design of the Project and shall comply with all applicable local ordinances. The only signs of any kind which tnay be displayed to the public view on or from any Lot or the Common Area shall be as follows:

4.21.1 Declarant: Signs may be displayed by Declarant on Common Area or unsold Lots, as Declarant deems appropriate, advertising Lots owned by Declarant for sale or rent;

4.21.2 Legal Proceedings: Signs required by legal proceedings may be displayed; 4.21.3 Project Identification: Appropriate signs may be displayed by the Association to

identify the Project; 4.21.4 Sale or Rent: One (1) sign of reasonable dimensions may be placed on a Lot

advertising the Lot for sale or rent; 4.21.5 Golf Course Crossing Signs : Appropriate signs may be displayed by the Course

Owner to identify, warn and otherwise control crossings of streets and roads within the Project by golf carts and pedestrian golfers;

4.21.6 Golf Course Identification: Permanent and temporary signs may be displayed by the Course Owner to identify the Golf Course and provide appropriate directions to the Golf Course and/or Golf Course for motorists and pedestrians;

4.21. 7 Golf Course Boundaries: Permanent and temporary markers may be displayed by the Course Owner to identify the boundaries of the Golf Course; and

4.21 . 8 Signs Approved By Board: Other signs, posters and notices approved by the Board or specified in the Rules or in this Declaration may be posted in locations designated by the Board.

4 .22 SPORTS EQUIPMENT: No basketball standards, fixed sports apparatus or similar equipment shall be attached to the exterior of any Residence or permanently placed on any Lot except in

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accordance with the provision of Article Xl. Portable or movable basketball equipment or other movable sports apparatus may not remain overnight on any Lot where visible from adjacent Lots or streets without the prior approval of the Board.

4.2 3 STORAGE OF WASTE MATERIALS: All garbage, trash and accumulated waste material shall be placed in appropriate covered containers. Containers holding recyclable materials need not be covered. Any containers provided by the Association may be stored in locations designated by the Board. Containers provided by Owners may be placed on Common Area or where visible only on the night before and the day that pick-up is to occur.

4 . 2 4 TIGER SALAMANDER HABITAT: No Owner shall engage in any activity which is detrimental to the purposes for which the Tiger Salamander Habitat was established and is being administered.

4.2 5 TRAFFIC REGULATIONS: The Association may promulgate, administer and enforce reasonable rules and regulations governing vehicular and pedestrian traffic, including reasonable safety measures and speed limits; provided however that the Association may not regulate, beyond that which is necessary for safety reasons, or prohibit golf cart access to streets within the Project. Vehicular and pedestrian traffic includes but is not limited to motor vehicles, trailers, golf carts , bicycles, skateboards and roller skates. The Association shall be entitled to enforce such provisions by establishing such enforcement procedures as it deems appropriate, including levying fines for the violation thereof, as long as such procedures are consistent with the Project Documents. Only drivers licensed to operate motor vehicles shall operate any type of motor vehicle within the Project. All vehicles of any kind which are operated within the Project shall be operated in a careful, prudent, safe and quiet manner and with due consideration for the rights of all Owners and their Invitees and the Golf Course, the Course Owner and its Invitees.

4.2 6 USE AND OCCUPANCY OF RESIDENCES : Each Residence may be used for (i) residential purposes, (ii) uses within Residences which cannot be prohibited under federal or state law and (iii) uses permitted by local ordinance (provided that home occupations must be conducted in a manner that does not materially and adversely impact the ability of other Owners to use and enjoy the Project). No Residence shall be permanently occupied by any more than two ( 2 ) persons per bedroom. No Owner may permit or cause anything to be done or kept upon or in a Lot which might obstruct or interfere with the rights of other Owners or which would be noxious, harmful or unreasonably offensive to other Owners. Each Owner shall comply with all of the requirements of all federal , state and local governmental authorities, and all laws, ordinances, rules and regulations applicable to the Owner's Lot.

4.27 USE OF COMMON AREA: All use of Common Area is subject to the Rules. All persons residing within the Project may enjoy the use of all facilities in the Common Area as long as they abide by the terms of the Project Documents. There shall be no obstruction of any part of the Common Area. Nothing shall be stored or kept in the Common Area without the prior consent of the Board. Nothing shall be done or kept in the Common Area which will increase the rate of insurance on the Common Area without the prior consent of the Board. No Owner shall permit anything to be physically done or kept in the Common Area or any other part of the Project which might result in the cancellation of insurance on any part of the Common Area, which would interfere with rights of other Owners, or which would be a nuisance, noxious, harmful or unreasonably offensive to other Owners. No waste shall be committed in the Common Area. The provisions of this Declaration concerning use, maintenance and management of the Common Area are subject to any rights or limitations established by any easements or other encumbrances which encumber the Common Area.

4.27.1 Convevance of Property bv Association: An Owner, Declarant or the Course Owner who receives title to any portion of the Common Area which is transferred by the Association as a result of subsequently recorded final maps, amended final maps , parcel maps, amended parcel maps , certificates of correction, lot line adjustments and/or records of survey shall take such property free and clear of any requirement that such land be devoted to use as Common Area. Upon conveyance, such land may be used for any purpose for which land adjacent to it may be used.

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4.2 7 .2 Conveyance of Property to Association: If the Asoociation accepts title to any real property transferred by an Owner, Declarant or the Course Owner as a result of subsequently recorded final maps. amended final maps. parcel maps, amended parcel maps, certificates of correction, lot line adjustments and/or records of survey, the property received shall be Common Area unless the conveyancing deed specifically provides otherwise.

4.2 8 USES IN SURROUNDING AREAS: In addition to tournaments within the Project, areas surrounding the Project may be subject to a wide variety of uses, including but not limited to agricultural, viticultural, commercial, industrial and retail. Each Owner, by acceptance of a deed to a Lot, expressly waives for himself or herself and his or her successors in interest and assigns any and all claims against owners of land adjacent to the Project, including Declarant and its successors in interest and assigns which arise from landowners' business uses of their lands as long as such uses are legal and are customarily considered ordinary and normal within the scope of the business use.

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ARTICLE V

IMPROVEMENTS

5 .1 MAINTENANCE OF COMMON AREA AND IMPROVEMENTS: The Association shall be responsible for the maintenance, repair , replacement, management, operation, painting and upkeep of Common Area, all Improvements situated in, upon or under the Common Area and any Improvements which a Declaration of Annexation provides are to be maintained by the Association. The Association shall keep the Common Area and Improvements in good condition and repair, provide for all necessary services and cause all acts to be done which may be necessary or proper to assure the maintenance of the Common Area and Improvements in first class condition. Notwithstanding the provisions of this Section, the Association shall not be obligated to continu