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Backup Documents 07/08/2014 Item #16A 4 ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO 6 A 4 THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATU Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later than Monday preceding the Board meeting. Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routing lines#I through#2,complete the checklist,and forward to the County Attomey Office. Route to Addressee(s) (List in routing order) Office Initials Date 1. 2. 3. County Attorney Office County Attorney Office kkl (7/t41 4. BCC Office Board of County Commissioners <l \A■4 5. Minutes and Records Clerk of Court's Office ` a∎ 8(11 04 12:24pm PRIMARY CONTACT INFORMATION Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing information. Name of Primary Staff John Houldswo Phone Number x-5757 Contact/ Department Agenda Date Item was July 8,2014 Agenda Item Number I6-A4 Approved by the BCC Type of Document Plat—Mussorie Village at Fiddler's Creek Number of Original One Attached Documents Attached PO number or account number if document is to be recorded INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A" in the Not Applicable column,whichever is Yes N/A(Not appropriate. (Initial) Applicable) 1. Does the document require the chairman's original signature? JH 2. Does the document need to be sent to another agency for additional signatures? If yes, JH provide the Contact Information(Name;Agency; Address; Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be JH signed by the Chairman,with the exception of most letters,must be reviewed and signed by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's N/A Office and all other parties except the BCC Chairman and the Clerk to the Board 5. The Chairman's signature line date has been entered as the date of BCC approval of the JH document or the final negotiated contract date whichever is applicable. . 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! 8. The document was approved by the BCC on July 8,2014 and all changes made f � • during the meeting have been incorporated in the attached document. The County f Attorney's Office has reviewed the changes,if applicable. t 9. Initials of attorney verifying that the attached document is the version approved by the BCC,all changes directed by the BCC have been made,and the document is ready for the Chairman's signature. I: Forms/County Forms!BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12 16A4 This instrument prepared by and after recording retum to: Mark F. Grant, Esq. Greenspoon Marder,P.A. 5150 Tamiami Trail North Suite 502 Naples, FL 34103 (239)659-1103 DECLARATION OF VILLAGE COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR MUSSORIE VILLAGE AT FIDDLER'S CREEK® Ear 17460589:9 ci � 16A4 TABLE OF CONTENTS PAGE ARTICLE I CREATION OF THE VILLAGE 2 1.1. PURPOSE AND INTENT 7 1.2. BINDING EFFECT 2 1.3. VILLAGE DOCUMENTS 2 1.4. ENFORCEMENT 3 ARTICLE II CONCEPTS AND DEFINITIONS 4 2.1. DEFINED TERMS 4 2.2. INTERPRETATION OF CERTAIN REFERENCES 10 ARTICLE III USE AND CONDUCT 10 3.1. RESTRICTIONS ON USE,OCCUPANCY,AND ALIENATION 10 3.2. RULE MAKING AUTHORITY 14 3.3. OWNERS' ACKNOWLEDGMENT AND NOTICE TO PURCHASERS 17 ARTICLE IV ARCHITECTURE AND LANDSCAPING 17 4.1. GENERAL 17 4.2. ARCHITECTURAL REVIEW 18 4.3. GUIDELINES AND PROCEDURES 19 4.4. SECURITY DEPOSITS FOR IMPROVEMENTS;INDEMNIFICATION 22 4.5. NO WAIVER OF FUTURE APPROVALS 73 4.6. VARIANCES 73 4.7. LIMITATION OF LIABILITY 23 4.8. ENFORCEMENT 24 ARTICLE V MAINTENANCE AND REPAIR 24 5.1. MAINTENANCE OF LOTS 25 5.2. INSURANCE ON LOTS;CASUALTY LOSSES 27 ARTICLE VI THE VILLAGE ASSOCIATION AND ITS MEMBERS 28 6.1. FUNCTION OF VILLAGE ASSOCIATION 28 6.2. MEMBERSHIP 78 6.3. VOTING 79 6.4. RELATIONSHIP TO FIDDLER'S CREEK FOUNDATION, INC. '9 ARTICLE VII VILLAGE ASSOCIATION POWERS AND RESPONSIBILITIES 30 7.1. ACCEPTANCE AND CONTROL OF VILLAGE COMMON AREA 30 7.2 MAINTENANCE OF VILLAGE COMMON AREAS 30 7.3. INSURANCE FOR VILLAGE COMMON AREAS 31 7.4. ENFORCEMENT 13 7.5. IMPLIED RIGHTS; BOARD AUTHORITY 16 7.6. PROVISION OF SERVICES TO LOTS 37 7.7. RELATIONSHIPS WITH OTHER PROPERTIES 37 17460589:9 • 16A4 7.8. RELATIONSHIP WITH GOVERNMENTAL AND TAX-EXEMPT ORGANIZATIONS 37 7.9. RESPONSIBILITIES UNDER GOVERNMENTAL PERMITS 37 7.10. WATERWAYS;WATER LEVEL AND USE 38 7.1 1. SURFACE WATER AND STORM WATER MANAGEMENT SYSTEM 39 ARTICLE VIII COVENANT TO PAY ASSESSMENTS; ESTABLISHMENT OF LIENS; COLLECTION OF ASSESSMENTS; COLLECTION BY DECLARANT; CERTAIN RIGHTS OF DECLARANT AND INSTITUTIONAL MORTGAGEES 40 8.1. AFFIRMATIVE COVENANT To PAY ASSESSMENTS 40 8.2. OPERATING EXPENSES. 40 8.3. ESTABLISHMENT OF LIENS 41 8.4. COLLECTION OF ASSESSMENTS 42 8.5. COLLECTION BY DECLARANT 42 8.6. RIGHTS OF DECLARANT AND INSTITUTIONAL MORTGAGEES TO PAY ASSESSMENTS AND RECEIVE REIMBURSEMENT 43 ARTICLE IX METHOD OF DETERMINING ASSESSMENTS AND ALLOCATION OF ASSESSMENTS 43 9.1. DETERMINING AMOUNT OF ASSESSMENTS 43 9.2. ASSESSMENT PAYMENTS 44 9.3. SPECIAL ASSESSMENTS 44 9.4. LIABILITY OF OWNERS OF INDIVIDUAL LOT ASSESSMENTS 44 9.5. BENEFITED ASSESSMENTS 45 9.6. BUDGETING FOR RESERVES 45 9.7. ASSESSMENTS PAYABLE BY DECLARANT;DECLARANT SUBSIDIES 46 9.8. WORKING FUND CONTRIBUTION 46 9.9. WAIVER OF USE 47 ARTICLE X REMOVAL OF PROPERTY 47 ARTICLE XI DEVELOPMENT PLAN 47 11.1. MUSSORIE VILLAGE AT FIDDLER'S CREEK® 47 11.2. VILLAGE COMMON AREA. 48 11.3. FIDDLER'S CREEK® 48 1 1.4. THE TARPON CLUB AND THE COUNTRY CLUBS AT FIDDLER'S CREEK® 49 11.5. FIDDLER'S CREEK®COMMUNITY DEVELOPMENT DISTRICT 2 49 1 1.6. TAXES AND ASSESSMENTS OF CDD 50 ARTICLE XII ADDITIONAL RIGHTS RESERVED TO DECLARANT 50 12.1. MARKETING AND SALES ACTIVITIES 50 12.2. RIGHT TO DEVELOP 52 12.3. RIGHT TO APPROVE CHANGES IN THE VILLAGE STANDARDS 53 12.4. RIGHT TO TRANSFER OR. ASSIGN DECLARANT RIGHTS 53 12.5. EASEMENT TO INSPECT AND RIGHT TO CORRECT 53 12.6. RIGHT TO NOTICE OF DESIGN OR CONSTRUCTION CLAIMS 54 12.7. TERMINATION OF RIGHTS 54 17460589:9 16A4 ARTICLE XIII EASEMENTS 54 13.1. EASEMENTS IN VILLAGE COMMON AREA 54 13.2. EASEMENTS OF ENCROACHMENT 54 13.3. EASEMENTS FOR UTILITIES,ETC 55 13.4. EASEMENTS FOR MAINTENANCE, EMERGENCY,AND ENFORCEMENT 55 13.5. EASEMENTS FOR CROSS-DRAINAGE 56 13.6. RIGHTS TO STORM WATER RUNOFF, EFFLUENT, AND WATER RECLAMATION 56 13.7. EASEMENT FOR MAINTENANCE OF SURFACE WATER AND STORM WATER MANAGEMENT SYSTEM 56 13.8. SIGN EASEMENT 57 13.9. EASEMENT FOR IRRIGATION EQUIPMENT 57 13.10. EASEMENT TO FOUNDATION 57 13.1 1. EASEMENT TO CDD 58 ARTICLE XIV DISPUTE RESOLUTION 58 14.1. IN GENERAL 58 14.2. DISPUTES BETWEEN VILLAGE ASSOCIATION AND OWNERS 58 14.3. DISPUTES BETWEEN VILLAGE ASSOCIATION/OWNER AND DECLARANT 58 14.4. DISPUTE RESOLUTION 58 ARTICLE XV MORTGAGEE PROVISIONS 62 15.1. NOTICES OF ACTION 63 15.2. SPECIAL FHLMC PROVISION 63 15.3. OTHER PROVISIONS FOR FIRST LIEN HOLDERS 64 15.4. AMENDMENTS TO DOCUMENTS 64 15.5. CONSTRUCTION OF ARTICLE XV 65 15.6. NO PRIORITY 65 15.7. NOTICE TO VILLAGE ASSOCIATION 66 15.8. FAILURE OF MORTGAGEE TO RESPOND 66 15.9. HUDNA APPROVAL 66 15.10. RIGHTS OF DECLARANT AND INSTITUTIONAL MORTGAGEES TO PAY ASSESSMENTS AND RECEIVE REIMBURSEMENT 66 ARTICLE XVI DISCLOSURES AND WAIVERS 67 16.1. No LIABILITY FOR THIRD PARTY ACTS 67 16.2. VIEW IMPAIRMENT 67 16.3. CONSTRUCTION ACTIVITIES 67 16.4. LIABILITY FOR VILLAGE ASSOCIATION OPERATIONS 68 ARTICLE XVII CHANGES IN OWNERSHIP OF LOTS 68 ARTICLE XVIII AMENDMENT OF VILLAGE COVENANTS 68 18.1. BY DECLARANT 68 18.2. BY THE OWNERS 69 18.3. VALIDITY AND EFFECTIVE DATE 69 18.4. EXHIBITS 69 iv 17460589:9 16A4 TABLE OF EXHIBITS EXHIBIT SUBJECT MATTER "A" Legal Description Mussorie Village at Fiddler's Creek® "B" Site Plan of Mussorie Village at Fiddler's Creek is "C" Initial Use Restrictions "D" Articles of Incorporation of Mussorie Village at Fiddler's Creek @ Association, Inc. "E" Bylaws of Mussorie Village at Fiddler's Creek a Association, Inc. V 1 7460589:9 16A4 DECLARATION OF VILLAGE COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR MUSSORIE VILLAGE AT FIDDLER'S CREEK® THIS DECLARATION OF VILLAGE COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR MUSSORIE VILLAGE AT FIDDLER'S CREEK® ("Village Covenants") is made this 25th day of July, 2014, by Taylor Morrison of Florida, Inc., a Florida corporation ("Declarant"), and is joined in by Mussorie Village at Fiddler's Creek® Association, Inc. ("Village Association"). WHEREAS, Declarant is the owner in fee simple of the real property more particularly described on Exhibit "A" attached hereto and made a part hereof(the "Property"); WHEREAS, Declarant desires to develop a planned residential community to be known as "Mussorie Village at Fiddler's Creek®" (as hereinafter defined) upon the Property; and WHEREAS, in order to develop and maintain Mussorie Village at Fiddler's Creek® as a planned residential community and to preserve the values and amenities of such community, it is necessary to declare, commit and subject the Property and the improvements now or hereafter constructed thereon to certain land use covenants, restrictions, reservations, regulations, burdens, liens, and easements; and to delegate and assign to the Village Association certain powers and duties of ownership, administration, operation, maintenance and enforcement; and WHEREAS, the Village Association is joining in these Village Covenants in order to acknowledge its obligations hereunder; and WHEREAS, the Property is part of a master planned community known as Fiddler's Creek® and is subject to the Foundation Documents (as hereinafter defined). NOW, THEREFORE, in consideration of the premises and covenants herein contained, Declarant hereby declares that the Property shall be owned, held, used, transferred, sold, conveyed, demised and occupied subject to the covenants, restrictions, easements, reservations, regulations, burdens and liens hereinafter set forth, all of which shall run with the Property and any part thereof, and which shall be binding upon all parties having any right, title or interest in the Property or any part thereof, their heirs, successors and assigns. 1 7460589:9 16A4 ARTICLE I CREATION OF THE VILLAGE 1.1. Purpose and Intent. Declarant (as defined in Article II), as the owner of the real property described in Exhibit "A," intends, by recording of these Village Covenants of Covenants, Conditions, Restrictions and Easements for Mussorie Village at Fiddler's Creek® (the "Village Covenants"), to establish a general plan of development for Mussorie Village at Fiddler's Creek®, a planned residential community. These Village Covenants, together with the other Village Documents described in Section 1.3, provides for the overall development, administration, maintenance, and preservation of Mussorie Village at Fiddler's Creek®. An integral part of the development plan is the creation of Mussorie Village at Fiddler's Creek® Association, Inc. (the "Village Association") to own, operate, and/or maintain various Village Common Areas and community improvements and to administer and enforce these Village Covenants and the other Village Documents. This document does not and is not intended to create a condominium under Florida law. 1.2. Binding Effect. These Village Covenants govern the Property which is described in Exhibit "A," and any other property submitted to these Village Covenants in the future pursuant to Article X, if any. These Village Covenants shall run with the title to the Property and shall bind everyone having any right, title, or interest in any portion of the Property, their heirs, successors, successors-in- title, and assigns. Declarant, the Village Association, any aggrieved Owner (as defined in Article II), and their respective legal representatives, heirs, successors, and assigns, may enforce these Village Covenants. Each Owner shall automatically be a Member (as defined in Article II) of the Village Association and the Foundation pursuant to the Foundation Declaration. These Village Covenants are intended to have perpetual duration, but shall be effective for a minimum of 30 years from the date it is recorded, subject to the right of Declarant and the Members to amend it as provided in Article XIX. After the initial 30-year period, it shall automatically be extended for successive 10-year periods in perpetuity unless, within the 12- month period preceding any extension, an instrument signed by the then Owners of at least 75% of the Lots (as defined in Article II) agreeing to terminate these Village Covenants are recorded. If any provision of these Village Covenants would be invalid under the Florida Uniform Statutory Rule Against Perpetuities, that provision shall expire 90 years after these Village Covenants are recorded. This section does not authorize termination of any easement created in these Village Covenants without the consent of the holder of such easement. 1.3. Village Documents. The following chart identifies the documents which govern the Village (as they may be amended from time to time, the "Village Documents") and describes, in part, the purpose of each. Every Owner and occupant of a Lot in Mussorie Village at Fiddler's Creek®, and their respective guests, tenants, visitors and invitees, shall comply with the Village Documents. 17460589:9 16A Village Covenants • creates obligations which are binding upon the Village (Recorded) Association and all present and future owners and occupants of, and others with any interest in,property in the Village Supplemental Declaration ► withdraws property from the Village;and/or may impose (when Recorded) additional obligations or restrictions on the property Articles of Incorporation • establish the Village Association as a not-for-profit (filed with the Secretary of State;initial Articles corporation under Florida law attached as Exhibit"D") Bylaws • govern the Village Association's internal affairs, such as (Board adopts; initial Bylaws attached as voting rights,elections, meetings, officers, etc. Exhibit"E") Architectural Guidelines • establish architectural standards and guidelines for (Declarant or Village Association may improvements and modifications within the Village, adopt) including structures, landscaping, and other items Use Restrictions • govern use of property and activities within the Village (initial set attached as Exhibit"C") Board Resolutions and Rules • establish rules, policies,and procedures for internal (Board may adopt) governance and Village Association activities; regulate operation and use of Village Common Area(as defined in Article II) Additional covenants, conditions, restrictions and easements may be imposed on all or any portion of the Village, in which case the more restrictive provisions will be controlling. However, no Person (as defined in Article II) shall record any additional covenants, conditions, restrictions or easements which abridges, affects or modifies any of Declarant's rights and privileges under these Village Covenants affecting any portion of the Village without Declarant's written consent, during the Development and Sale Period (as defined in Article II),or without the Board's consent thereafter. Any instrument recorded without the necessary consent is void and of no force or effect. If there are conflicts between Florida law, the Foundation Documents, these Village Covenants, the Articles, and the Bylaws; Florida law, the Foundation Documents, these Village Covenants, the Articles, and the Bylaws (in that order) shall prevail. If any court determines that any provision of these Village Covenants are invalid, or invalid as applied in a particular instance, such determination shall not affect the validity of other provisions or other applications of the provision. 1.4. Enforcement. The Village Association and Declarant shall have the right to enforce compliance of the terms of these Village Covenants by each Owner, his or her family, lessees, invitees and guests. 3 17460589:9 16A . 4 ARTICLE II CONCEPTS AND DEFINITIONS 2.1. Defined Terms. The terms used in the Village Documents are given their natural, commonly accepted definitions unless otherwise specified. Capitalized terms are defined as follows: "Affiliate": Any Person which (either directly or indirectly, through one or more intermediaries) controls, is in common control with, or is controlled by, another Person, and any Person that is a director, trustee, officer, employee, independent contractor, shareholder, agent, co-venturer, subsidiary, personal representative, or attorney of any of the foregoing. For the purposes of this definition, the term "control" means the direct or indirect power or authority to direct or cause the direction of an entity's management or policies, whether through the ownership of voting securities, by contract, or otherwise. "Architectural Guidelines": The architectural, design, and construction guidelines and review procedures adopted pursuant to Article IV as they may be amended from time to time. "Architectural Review Board" or "ARB": The committee established, upon delegation or termination of Declarant's authority under Article IV, to review plans and specifications for the construction or modification of improvements and to administer and enforce the architectural controls described in Article IV. "Articles": The Articles of Incorporation of Mussorie Village at Fiddler's Creek® Association, Inc., filed with the Secretary of State for the State of Florida, as they may be amended from time to time. A copy of the initial Articles are attached to these Village Covenants as Exhibit "D." The "Articles" are "Village Articles" as defined in the Foundation Declaration. "Assessment": Assessments for which the Owners are obligated to pay to the Village Association and includes "Individual Lot Assessments," "Benefited Assessments" and "Special Assessments" (as such terms are defined herein) and any and all other assessments which are levied by the Village Association in accordance with the Village Documents. "Board of Directors" or "Board": The body responsible for the general governance and administration of the Village Association, selected as provided in the Bylaws. "Builder": Taylor Morrison of Florida, Inc., a Florida corporation, or its successors or assigns, and any other entity(ies) Declarant may designate as a Builder. Declarant shall have the right to assign, in whole or in part, any of its rights and/or responsibilities hereunder to a Builder(s). "Bylaws": The Bylaws of Mussorie Village at Fiddler's Creek® Association, Inc., as they may be amended from time to time. A copy of the initial Bylaws is attached to these Village Covenants as Exhibit "E." The "Bylaws" are "Village Bylaws" as defined in the Foundation Declaration. 4 17460589:9 16A. 4 "Class "B" Control Period": The time period during which the Class "B" Member may appoint a majority of the Board members. The Class `B" Control Period shall end when any one of the following occurs: (a) when 90% of the combined total of all Lots proposed under the Development Plan have been issued certificates of occupancy and are owned by Members other than the Class "B" Member; (b) when, in its discretion, the Class "B" Member so determines. "Community Development District" or "CDD": Fiddler's Creek® Community Development District 2, which has the power to impose taxes (including annual taxes) or assessments, or both taxes and assessments, on the Property through a special taxing district. These taxes and assessments pay the construction, operation, and maintenance costs of certain public facilities of the CDD and are set annually by the governing board of the CDD. These taxes and assessments are in addition to county and all other taxes and assessments provided for by law. "Completed Lot": A Lot on which the construction of a Home has been completed, for which a certificate of occupancy or equivalent therefore has been issued by the appropriate governmental agency, and the title to which has been conveyed by Declarant. "Completed Lot Owner": The Owner of a Completed Lot. "County": Collier County, Florida. "Declarant": Taylor Morrison of Florida, Inc., a Florida corporation, or any successor or assign as developer of all or any portion of the Village that is designated as Declarant in a recorded instrument which the immediately preceding Declarant executes. On all matters, Declarant may act through any of its Affiliates. Any Person who at any time holds the rights of Declarant hereunder and subsequently transfers or assigns the rights of Declarant to another Person shall be known as a "predecessor Declarant" and, unless otherwise agreed in writing, shall be entitled to the rights of a predecessor Declarant established in these Village Covenants. Whether or not specifically stated, a predecessor Declarant shall be afforded the same protection with respect to matters arising during its tenure as Declarant as the predecessor Declarant would have if it were still Declarant. "Development Plan": The land use plan for the Village described in Article XI, as the same may be amended from time to time by Declarant as depicted on the Site Plan for Mussorie Village at Fiddler's Creek® attached hereto as Exhibit "B." In addition, Declarant reserves the right to withdraw portions thereof. Reference should he made to Article XI of these Village Covenants for the respective rights and obligations of Owners and Declarant with respect to the use and development of the Village. 5 7460589:9 16A4 "Development and Sale Period": The period of time during which Declarant and/or its Affiliates and/or any Builder and/or its Affiliates are using the Village for the sale and marketing of Homes in the Village and/or in any other communities developed or to be developed by Declarant or any of its affiliates, including, but not limited to, the holding of sales and marketing meetings, the use of"model row(s)" if one or more, the use of design centers, the use of service and construction trailers, and engaging in sales promotions and related sales and marketing activities for the general public. "Fiddler's Creek®": The name given to the planned community being developed by Foundation Declarant in the County in accordance with the Foundation Declaration. "Foundation": Fiddler's Creek® Foundation, Inc., a Florida corporation not for profit, organized to administer the Foundation Declaration and having among its members all Owners of fee simple title to a "Unit" which is subject to assessment by the Foundation (as such terms are defined in the Foundation Declaration), including the Owners in Mussorie Village at Fiddler's Creek®. The Owners are also "Class A Members" (as defined in the Foundation Declaration) of the Foundation and the Owners are subject to assessment by the Foundation. "Foundation Declarant": FCC Marsh, LLC (f/k/a 951 Land Holdings, Ltd.), a Florida limited liability company; FCC Aviamar, LLC (f/k/a GBFC Development, Ltd.), a Florida limited liability company; FCC Preserve, LLC, a Florida limited liability company; FCC Veneta, Ltd. (f/k/a GBP Development, Ltd.), a Florida limited partnership; FCC Veneta, LLC, (f/k/a GB Peninsula, Ltd.) a Florida limited liability company; and GB 31, LLC, a Florida limited liability company, and all of such entities' successors and assigns. "Foundation Declaration": The Amended and Restated Declaration of General Covenants, Conditions and Restrictions for Fiddler's Creek® recorded in Official Records Book 3685, Page 319, of the Public Records of the County, and all amendments and supplements thereto, whereby portions of the real property at Fiddler's Creek® are set aside from time to time by Foundation Declarant in accordance with the plan for development set forth therein and whereby the "Assessments" (as defined therein) of the land areas designated therein as "Village Common Areas" and "Recreational Property" are made specifically applicable to Owners to be collected by the Foundation. The Foundation Declaration authorizes Annual Assessments (including Membership Dues Assessment and the costs of promoting, preserving and maintaining the Village Common Areas), Special Assessments, Capital Acquisition Assessments, Telecommunications Services Assessment, Capital Reserve Assessments and Resale Capital Acquisition Assessments (all as defined therein) to be levied against the Owners. The Foundation may delegate the responsibility of collection of Assessments to the Association, in which case, the Association will collect the Assessments and remit same to the Foundation. "Foundation Documents": The Foundation Declaration, the Articles of Incorporation and Bylaws of the Foundation, the design review standards and procedures, any rules and regulations promulgated by the Foundation and all of the instruments and documents referred to therein and executed in connection therewith, and any amendments to any of the documents thereto. 6 1 7460589:9 164.. / "HOA Act": The homeowners' association act, Chapter 720, Florida Statutes, as amended through the date of recording these Village Covenants amongst the Public Records of the County. "Home": A residential dwelling unit in Mussorie Village at Fiddler's Creek® intended as an abode for one family. The term Home shall include the Lot as provided in Article II, Section 2.1. A Home is a "Residential Unit" as defined in the Foundation Declaration. "Improvement": Any Home, building, structure or improvement of any kind including, but not limited to, any wall, fence, landscaping, planting, topographical feature, mailbox, play set, basketball pole and backboard, swimming pool, tennis court, screen enclosure, driveway, sidewalk, sewer, drain, water area, outside lighting or sign and addition, alteration or modification thereto, which Improvement has previously received the approval of the Foundation. "Incomplete": The status of construction where a certificate of occupancy for a Home constructed on a Lot has not been issued by the appropriate governmental agency but which Lot has been cleared, filled and compacted and is ready to receive a Home thereon. "Incomplete Lot": Any Lot which is not a Completed Lot. "Incomplete Lot Owner": The Owner of an Incomplete Lot. "Institutional Mortgage": A mortgage held by an Institutional Mortgagee on any property within Mussorie Village at Fiddler's Creek®. "Institutional Mortgagee": Any lending institution owning a first mortgage encumbering any Home or Lot within Mussorie Village at Fiddler's Creek®, which owner and holder of said mortgage shall either be a bank, life insurance company, federal or state savings and loan association, real estate or mortgage investment trust, building and loan association, mortgage banking company licensed to do business in the State of Florida, or any subsidiary thereof, licensed or qualified to make mortgage loans in the State of Florida or a national banking association chartered under the laws of the United States of America or any "secondary mortgage market institution," including the Federal National Mortgage Association ("FNMA"), Government National Mortgage Association ("GNMA"), Federal Home Loan Mortgage Corporation ("FHLMC") and such other secondary mortgage market institutions as the Board shall hereafter approve in writing; any and all lenders, and the successors and assigns of such lenders, which have loaned money to Declarant and which hold a mortgage on any portion of the Property securing any such loan; any pension or profit-sharing funds qualified under the Internal Revenue Code; the Veterans Administration, the Federal Housing Administration or the Department of Housing and Urban Development or such other lender as is generally recognized in the community as an institutional lender; or Declarant, its successors and assigns. "Lakes": Those portions of Fiddler's Creek® designated as Lakes, Lake tracts or storm water management tracts. The Lakes are owned and maintained by the CDD. 7 17460589:9 16A4 "Lake Lot": A Lot which abuts one of the Lakes as shown on the Site Plan. "Legal Costs": The costs which a Person entitled to reimbursement for "Legal Costs" under any provision of the Village Documents incurs in pursuing legal action (regardless of whether suit is filed) to enforce the Village Documents, including, but not limited to, reasonable attorneys' and paralegals' fees, expert witness fees, and court costs at all tribunal levels incurred in connection with: (i) negotiation and preparation for mediation, arbitration or litigation, whether or not an action is actually begun, and (ii) collection of past due Assessments including, but not limited to, preparation of notices and liens. "Lot": A portion of the Village, whether improved or unimproved, which may be independently owned and conveyed, and which is improved, or intended to be improved, with a Home. The term shall refer to the land, if any, which is part of the Lot as well as any improvements on the Lot. The boundaries of each Lot are shown on the Plat. Each Home that may be sold independently shall be a separate Lot. Upon completion of construction of the Home on a Lot, such Lot and the improvements thereon shall collectively be considered to be a Home for purposes of these Village Covenants and the other Village Documents. "Member": A Person subject to membership in the Village Association, as described in Section 6.2. "Mortgage": A mortgage, a deed of trust, a deed to secure debt, or any other form of security instrument affecting title to any Lot. The term "Mortgagee" shall refer to a beneficiary or holder of a Mortgage. "Operating Expenses": shall mean the expenses for which Owners are liable to the Village Association as described in these Village Covenants and any other Village Documents and include, but are not limited to: (a) the costs and expenses incurred by the Village Association in owning, administering, operating, maintaining or repairing (but not reconstructing, replacing or improving) the Village Common Area or any portion thereof and Improvements thereon, and (b) all costs and expenses incurred by the Village Association in carrying out its powers and duties hereunder or under any other Village Documents. "Owner": The record title holder to any Lot, but excluding, in all cases, anyone holding an interest merely as security for the performance of an obligation (e.g., a Mortgagee). Owner as used herein shall also mean an "Owner" as defined in the Foundation Declaration. "Person": An individual, a corporation, a partnership, a trustee, or any other legal entity. "Plat": The plat of Mussorie Village at Fiddler's Creek®, recorded in Plat Book Pages through , of the Public Records of Collier County, Florida, and any replats thereof or any portions thereof. "Property": The real property subjected to these Village Covenants; provided, however, Declarant reserves the right to withdraw from the provisions hereof such portion or portions of 8 I 7460589:9 16A 4 the Property (which is owned by Declarant) as Declarant from time to time elects, upon the execution by Declarant of a Supplemental Declaration. "Rules and Regulations": shall mean the rules and regulations pertaining to the Village as established by the Village Association, as same may be amended and/or abolished from time to time. "Supplemental Declaration": A recorded instrument which withdraws property from these Village Covenants and/or imposes additional and/or modified restrictions and obligations on the land described in such instrument. "Surface Water and Storm Water Management System": A Surface Water and Storm Water Management System consisting of swales, inlets, culverts, retention ponds, detention ponds, Lakes, outfalls, storm drains and the like, and all connecting pipes and easements, which is designed and constructed or implemented to control discharges which are necessitated by rainfall events, incorporating methods to collect, convey, store, absorb, inhibit, treat, use or reuse water to prevent or reduce flooding, over-drainage, environmental degradation, and water pollution or otherwise affect quantity and quality of discharges from the system, as permitted pursuant to the "SFWMD Rules" (as hereinafter defined). The Surface Water and Storm Water Management System facilities include, but are not limited to: all inlets, ditches, swales, culverts, water control structures, retention and detention ponds, Lakes, floodplain compensation areas, wetlands and any associated buffer areas and wetland mitigation areas, to the extent that any such facilities, areas, or conditions apply to the Village. The CDD shall own and be responsible for the maintenance, repair and replacement of the Surface Water and Storm Water Management System contained within the Property. "SFWMD": shall mean and refer to the South Florida Water Management District, a regional water management district established in accordance with Florida law, and any successor, governmental agency, body or special district charged with the rights and responsibilities of the SFWMD. "Turnover": The date Class "B" membership shall cease and be converted to Class "A" membership, upon which Declarant transfers majority control of the Board as provided in the Articles. "Use Restrictions": The initial use restrictions, rules, and regulations governing the use of and activities on the Lots and Village Common Areas are set forth in Exhibit "C," as they may be changed in accordance with Article III or otherwise amended from time to time. "Village" or "Mussorie Village at Fiddler's Creek®": The real property described in Exhibit "A." "Village Association": Mussorie Village at Fiddler's Creek® Association, Inc., a Florida not-for-profit corporation, its successors or assigns. 9 I7460589:9 16A4 "Village Common Area": All real and personal property, including easements, which the Village Association owns, holds, leases, or otherwise has a right to possess or use for the common use and enjoyment of the Owners. The Village Common Area consists only of the Landscape Buffer Easements ("L.B.E.") and Sign Easements ("S.E.") as shown on the Plat. "Village-Wide Standard": The standard of conduct, maintenance, or other activity generally prevailing throughout the Village, or the minimum standards established pursuant to the Architectural Guidelines, Use Restrictions, and Board resolutions, whichever is the highest standard. Declarant initially shall establish such standard. The Village-Wide Standard may contain objective elements, such as specific maintenance requirements, and subjective elements, such as matters subject to the Board's or the ARB's discretion. The Village-Wide Standard may or may not be set out in writing. The Village-Wide Standard may evolve as development progresses and as the Village matures. 2.2. Interpretation of Certain References. (a) Recording. All references in the Village Documents to a "recorded" legal instrument, or to recordation or the recording of a legal instrument, shall refer to an instrument filed, or the filing of a legal instrument, in the public records of the County, or such other place designated as the official location for filing documents affecting title to real estate in the County in order to make them a matter of public record. (b) Consent or Approval. All references in the Village Documents to "consent" or "approval" shall refer to permission or approval which, unless otherwise expressly qualified in the specific provision, may be granted or withheld in the discretion of the Person whose consent or approval is required. (c) Discretion and Determinations. All references in the Village Documents to "discretion" or to the right to "determine" any matter shall refer to the sole and absolute power or right to decide or act and, unless otherwise expressly limited in the Village Documents, a Person entitled to exercise its discretion or make a determination may do so without regard to the reasonableness of, and without the necessity of justifying, the decision, determination, action or inaction. ARTICLE III USE AND CONDUCT 3.1. Restrictions on Use, Occupancy, and Alienation. In addition to the initial Use Restrictions set forth in Exhibit ""C" which may be modified as provided below, the Lots shall be subject to the following restrictions set forth in this Section and may be amended only in accordance with Article XIX. (a) Residential and Related Uses. Lots shall be used primarily for residential and related purposes. No business shall be conducted in, on, or from any Lot, except that an 10 1 7460589:9 16A4 occupant residing in the Home on a Lot may conduct business activities ancillary to their primary residential use, if the business activity, as determined in the Board's discretion: (i) is not apparent or detectable by sight, sound, or smell from outside of a permitted structure; (ii) complies with applicable zoning and other legal requirements and other requirements of these Village Covenants and the Foundation Documents; (iii) does not involve regular visitation of the Lot by clients, customers, suppliers, or other business invitees, or door-to-door solicitation within the Village; and (iv) is consistent with the residential character of the Village and does not constitute a nuisance, or a hazardous or offensive use, or threaten the use and enjoyment of other Lots by the Owner thereof or the security or safety of others within the Village. "Business" shall have its ordinary, generally accepted meaning and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves providing goods or services to Persons other than the family of the producer and for which the producer receives a fee, compensation, or other form of consideration, regardless of whether (a) such activity is engaged in full or part time, (b) such activity is intended to or does generate a profit, or(c) a license is required. No Lot shall be rezoned to any classification allowing commercial, institutional, or other non-residential use without the express written consent of the Village Association, Declarant and the Foundation, which either may withhold in their discretion. Notwithstanding anything in this Article to the contrary, Declarant, the Village Association and the Foundation may enforce this covenant by obtaining an injunction against any unapproved rezoning at the expense of the party pursuing the unapproved rezoning, in addition to and not in limitation of Declarant's, the Village Association's or the Foundation's other rights and remedies. This Section shall not apply to restrict Declarant's, or Declarant's Affiliates' or Builder's or Builder's Affiliates' activities, nor shall it restrict the activities of Persons Declarant approves with respect to the development, construction, and sale of property in the Village. This Section shall not apply to Village Association activities related to the provision of services or to operating and maintaining the Village Common Area. Leasing of a single Lot by the Owner thereof for residential occupancy shall not be considered a "business" within the meaning of this subsection; however, no Owner or group of Owners who are Affiliates shall, on their own behalf or through any agent, engage in leasing activity with respect to multiple Lots at the same time. (b) Leasing. For purposes of these Village Covenants, "leasing" is the regular, exclusive occupancy of a Home by any Person other than the Owner, for which the Owner receives any consideration or benefit, including, without limitation, a fee, service, or gratuity. 11 1 7460589:9 16A 4 The Home may be leased only in its entirety (e.g., separate rooms within the same Home may not be separately leased). No portion of a Home (other than an entire Home) may be rented. All leases must be in writing and shall have a term of no less than thirty (30) days. No Owner may lease his or her Home more than three (3) times in any calendar year, even if a tenant defaults on a lease or abandons the Home before expiration of the lease term. No lease shall provide for an early lease termination which would reduce a lease term to a period of less than said thirty (30) days, except in the event of a default by the tenant. Any lease terminated as a result of a default or otherwise, shall nevertheless still count towards the foregoing rental limitations. The restrictions on lease terms set forth in this paragraph shall not apply to Homes owned or leased by Declarant, its Affiliates, or Persons Declarant approves, in connection with their development, construction, or sale of property in the Village. An entire copy of the lease shall be provided to the Village Association and the Foundation and shall include an acknowledgment by the tenant that the tenant and all occupants of the leased Home are bound by and obligated to comply with the Village Documents and the Foundation Documents and that the tenant has received a copy of the Village Documents and the Foundation Documents. The Village Association may require that the lease contain an addendum approved by the Village Association. The Owner shall be responsible for providing a copy of the Village Documents and the Foundation Documents to the tenant prior to execution of the lease and shall monitor enforcement and compliance with the Village Documents and the Foundation Documents by the tenant. In the event that an Owner is delinquent in the payment of his or her Assessments or other sums due and owing to the Village Association, the Home shall not be leased until such amounts are paid in full or unless the Village Association consents, in writing, to any such lease. If the Home is leased in violation of this provision, the Village Association may terminate the lease and evict the tenants in addition to imposing all other available remedies. In the event an Owner is in default in the payment of Assessments or other sums due and owing to the Village Association and the Owner's Home is leased, the Village Association shall have the right and authority to collect the rent to be paid by the tenant to the Owner directly from the tenant. In the event such tenant fails to remit said rent directly to the Village Association within ten (10) days (but no later than the day the next rental payment is due) from the day the Village Association notified such tenant in writing that the rents must be remitted directly to the Village Association, the Village Association shall have the right to terminate the lease and evict the tenant. All sums received from the tenant shall be applied to the Owner's account for the leased Home according to the priority established in Section 720.3085, Florida Statutes, until the Owner's account is current. All leases entered into by an Owner shall be deemed to automatically incorporate this provision and all the Owners hereby appoint the Village Association its agent for such purpose. The Village Association may, without further approval of the Owner of the leased Home, terminate the lease for violations of these Village Covenants by the tenants, or the tenant's family or guests and thereafter evict the tenants from the Home. In addition to any notice to a tenant of a Home permitted to be given by law, an Owner by acceptance of a deed to a Lot, does hereby irrevocably grant to the Village Association 12 17460589:9 16A4 (and its officers, directors, designees, agents, and employees) and to any professional management or accounting tirm providing management or accounting services to the Village Association, the right to notify, in writing, the tenant of the Home of any delinquency by the Owner of the Home in payment of any monetary obligations due to the Village Association, including but not limited to the amount thereof. Further each Owner hereby agrees and acknowledges that the disclosure of any of Owner's delinquent monetary obligations due to the Village Association, as provided in the preceding sentence, shall not be construed or be deemed to be a violation of the Fair Debt Collection Practices Act ("FDCPA") 15 U.S.C. Section 1692 et. seq. Each lease shall set forth the name, address, and telephone number of the Home's Owner and of the tenant(s); the date the tenant's occupancy commences and ends; a description of each motor vehicle owned or operated by the tenant or members of the tenant's household; and a description of all pets to be kept at the Home. If an Owner elects to permit a tenant to sublease during the term of the lease, such sublease shall be subject to the limitations and requirements established in these Village Covenants to the same extent and effect as the original lease. Within five (5) days of a lease being signed for a Home, the Owner shall notify the Board or the Village Association's managing agent and the Foundation of the lease and provide an entire copy of such lease to the Village Association and the Foundation and such additional information the Board or the Foundation may reasonably require. In addition to this subsection (b), the Board and the Foundation may, from time to time, adopt reasonable Use Restrictions and rules regulating leasing and subleasing. No Owner may assign or otherwise transfer the Owner's obligations under these Village Covenants to any tenant. The Village Association shall have the right to enforce the covenants, conditions, and restrictions set forth in these Village Covenants against the Owner, the tenant, or any member of the tenant's household, individually or collectively. The Village Association shall not be bound by any provision in the lease or other agreement between Owner and his or her tenant requiring prior notice or imposing other conditions on the rights of the Village Association. The Village Association shall be deemed a third party beneficiary of all leases of Homes, and shall have the right, but not the obligation, to enforce the terms and conditions of such leases against the tenant or the Owner. Notwithstanding the foregoing, the Village Association's failure to object to any term or condition of a lease or occupancy arrangement shall not be deemed to be consent or approval of any term or condition of the lease, nor shall the Village Association have any obligation whatsoever for the performance of any obligation of Owner or tenant contained in the lease or otherwise. Notwithstanding any condition of any lease to the contrary, each Owner, by acceptance of the deed to a Lot, hereby covenants and agrees with the Village Association and all other Owners in the Village, including, but not limited to, Declarant, that the Owner shall be responsible for any violation of the Village Documents resulting from the acts or omissions of 13 17460589:9 16A4 his or her tenant, other occupants of the leased Home, and their respective guests to the same extent that Owner would be liable for such violation if it had resulted from the acts or omissions of the Owner or a member of the Owner's household or guests. The Owner's obligations hereunder shall be deemed a guaranty of performance by his or her tenant, and the Village Association shall have the right to take any action or seek any remedy for the tenant's failure or refusal to comply with the Village Documents directly from or against the Owner without first taking such action or obtaining such remedy from or against the tenant. The Village Association may, without further approval of the Owner of the leased Home, terminate the lease for violations of the Village Documents by the tenants, or the tenant's family or guests and thereafter evict the tenants from the Home. (c) Occupants Bound. Every Owner shall cause anyone occupying or visiting his or her Lot to comply with the Village Documents and the Foundation Documents and shall be responsible for all violations of the Village Documents and the Foundation Documents and any damage and losses they cause to the Village Common Areas or "Common Areas" of Fiddler's Creek® (as defined in the Foundation Declaration), notwithstanding the fact that such Persons also are personally responsible for complying and may be sanctioned for any violation. (d) Subdivision of a Lot. Lots may not be subdivided or their boundary lines changed. If Declarant, or any Declarant Affiliate, owns any portion of the Village, it may convert Lots it owns into Village Common Area. (e) Lodging; Timeshares. No Lot may be used as a rooming house, hostel, or hotel. Timesharing or other arrangements involving more than three ownership interests in a Lot (including ownership by more than three Persons as joint tenants or tenants-in-common), or assigning separate use periods of less than thirty (30) consecutive days' duration, are prohibited. 3.2. Rule Making Authority. (a) Subject to the terms of this Article and the Board's duty to exercise business judgment and reasonableness on behalf of the Village Association and the Members, the Board may change (i.e., modify, cancel, limit, create exceptions to, or add to) the Use Restrictions and/or Rules and Regulations; however, during the Development and Sale Period the Board shall be required to obtain Declarant's written consent. The Board shall send the Members notice of any proposed change at least five (5) business days before the Board meeting at which such change will be considered. The Owners shall have a reasonable opportunity to be heard at such Board meetings. The proposed change to the Use Restrictions shall be approved unless disapproved by a majority of the Class "A" Members' votes and by the Class "B" Member, if any. The Board is not obligated to call a meeting of the Members to consider disapproval unless it receives a petition that meets the Bylaws requirement for special meetings. If the Board receives such a petition before the effective date of the change, the change shall not become effective until after a meeting is held, and then subject to the outcome of the meeting. The Board. acting alone, may amend and/or abolish the Rules and Regulations, or any of them, in the 14 1 7460589:9 16A4 Board's discretion, subject to its duty to exercise business judgment and reasonableness on behalf of the Village Association and the Members. (b) Alternatively, members representing a majority of the Class "A" votes, at a Village Association meeting duly called for such purpose, may vote to change the Use Restrictions then in effect. Any such change during the Development and Sale Period shall require approval of Declarant. (c) No action taken under this Article shall have the effect of modifying, repealing, or expanding the Foundation Declaration, the Architectural Guidelines or any provision of these Village Covenants other than the Use Restrictions and Rules and Regulations, respectively. In the event of a conflict between the Foundation Declaration, the Architectural Guidelines, the Use Restrictions and/or the Rules and Regulations, the Foundation Declaration, Architectural Guidelines, the Use Restrictions, the Rules and Regulations shall control in that order. In the event of a conflict between the Use Restrictions or Rules and Regulations and any provision within these Village Covenants (exclusive of the Use Restrictions), the Village Covenants provision shall control. (d) Except as may be set forth in the Foundation Documents or these Village Covenants (either initially or by amendment) or in the initial Use Restrictions set forth in Exhibit "C," or in the Rules and Regulations, the Village Association's actions with respect to Use Restrictions and Rules and Regulations must comply with the following: (i) Displays. Owners' rights to display religious and holiday signs, symbols, and decorations on their Lots of the kinds normally displayed in residential neighborhoods with homes of comparable type, quality, and price range to those in the Village shall not be further abridged, except that the Village Association may adopt time, place, size, number, and manner restrictions with respect to such displays, all such displays being in accordance with the Foundation Declaration and any approval required by the Foundation and the DRC, as applicable. (ii) Signs. No sign, display, poster, advertisement, notice or other lettering of any kind whatsoever (including, without limitation, "For Sale," "For Rent" or `By Owner" or any other signs for the sale or renting of homes) shall be exhibited, displayed, inscribed, painted or affixed in public view of any portion of any building, vehicle or other Improvement in Mussorie Village at Fiddler's Creek® (including, without limitation, a Home) without the prior written approval of the DRC and the ARB, which approval may be given, withheld, conditioned or denied in the sole and absolute discretion of the DRC and the ARB. Notwithstanding anything to the contrary contained in these Rules and Regulations, the DRC and the ARB shall not approve any sign, display, poster, advertisement, notice or other lettering which is or in the nature of a "For Sale," "For Rent," "By Owner" or any other similar sign for the renting or sale of a Home so long as Declarant owns a Lot in Mussorie Village at Fiddler's Creek® or so long as Declarant or any of Declarant's affiliates (or any of their respective successors or assigns) are conducting sales and marketing of Homes in Mussorie Village at Fiddler's Creek® or other communities developed or marketed by Declarant or its affiliates, whichever is later. Signs, regardless of size, used by Declarant or a Builder, their successors or 15 1 7460589:9 16A4 assigns, for advertising and marketing during the Development and Sale Period of Mussorie Village at Fiddler's Creek® or other communities developed and/or marketed by Declarant and/or its Affiliates and other signs authorized by Declarant and/or its Affiliates shall be exempt from these restrictions. Such sign or signs as Declarant and/or its Affiliates and/or a Builder and/or its Affiliates may be required to erect under the terms of an institutional mortgage shall be exempt from this restriction. An Owner may display a security sign, provided by a contractor for security services, as permitted by the HOA Act. This provision may not be amended without the prior written consent of Declarant. (iii) Activities Within Homes. The Village Association shall not interfere with activities carried on within a Home, except that it may prohibit activities not normally associated with residential property, and it may restrict or prohibit activities that create monetary costs for the Village Association or other Owners, that create a danger to anyone's health or safety, that generate excessive noise or traffic, that create unsightly conditions visible outside the Home that create undesirable odors noticeable to persons outside the Home, or that are an unreasonable source of annoyance, or that violates a provision of the Village Documents. This provision shall not be applicable to Declarant and/or its Affiliates and/or a Builder and/or its Affiliates. (iv) Alienation. The Village Association shall not prohibit leasing or transfer of any Lot or require the Village Association's or the Board's consent prior to leasing or transferring a Lot. The Village Association may impose restrictions on leasing, in addition to those set forth in this Article, and may require that Owners use a Village Association-approved addendum (or include specific lease terms) and may impose a reasonable review or administrative fee on the lease or transfer of any Lot. (v) Abridging Existing Rights. The Village Association may not require an Owner to dispose of personal property that was in or on a Lot in compliance with previous rules. This exemption shall apply only during the period of such Owner's ownership of the Lot and shall not apply to subsequent Owners who take title to the Lot after adoption of the rule. (vi) Right to Develop. The Village Association may not impede Declarant's or any Builder's right to develop, market, or sell the Property or any portions thereof. Declarant plans to undertake the work of constructing Homes and Improvements upon the Property and may undertake the work of constructing other buildings upon adjacent land or other property being developed or marketed by Declarant, Builder or any of their affiliates. The completion of the aforementioned work and the sale, rental and other transfer of Homes by Declarant, Builder and their affiliates are essential to the establishment and welfare of the Property as a residential community. In order that such work may be completed and a fully occupied community established as rapidly as possible, neither the Owners, the Village Association, nor the ARB shall do anything whatsoever to interfere with or impede any of Declarant's, Builder's or of their affiliates' activities relating to the selling or constructing of Homes and Improvements upon the Property, the selling or constructing of other buildings upon adjacent land or any other property being developed or marketed by Declarant, Builder or any 16 1 7460589:9 16A4 their affiliates, or the sale, rental and/or other transfer of Homes by Declarant, Builder or any of Declarant's affiliates. In this respect, Declarant hereby reserves the right for itself and its employees, agents, licensees, and invitees to come upon any and all portions of the Property (including a Lot even after the same has been conveyed to an Owner) as may be necessary or convenient to enable Declarant, Builder and/or any of their affiliates to carry on its work and other activities including, without limitation, Declarant's development and construction of Mussorie Village at Fiddler's Creek® and the Homes therein. In general, the restrictions and limitations set forth in this Article III and in Exhibit "C" shall not apply to Declarant or to Lots owned by Declarant. Declarant shall specifically be exempt from any restrictions which interfere in any manner whatsoever with Declarant's plans for development, construction, sale, lease, or use of the Property and to the Improvements thereon. Declarant shall be entitled to injunctive relief for any actual or threatened interference with its rights under this Article III and Exhibit "C" in addition to whatever remedies at law to which it might be entitled. This subsection (e) may not be amended without the prior written consent of Declarant so long as it owns any portion of the Property. 3.3. Owners' Acknowledgment and Notice to Purchasers. Each Owner, by accepting a deed, acknowledges and agrees that the use, enjoyment, and marketability of his or her Lot is limited and affected by the terms of the Village Documents, including the Use Restrictions and the Rules and Regulations, which may change from time to time. All Lot purchasers are on notice that the Village Association may have adopted changes to the Use Restrictions and Rules and Regulations and that such changes may or may not be set forth in a recorded document. Copies of the current Use Restrictions and Rules and Regulations may be obtained from the Village Association. ARTICLE IV ARCHITECTURE AND LANDSCAPING 4.1. General. Mussorie Village at Fiddler's Creek® is being developed with the intent that Homes harmonize with each other and present a consistent style. To ensure the preservation of the existing harmonious design and to prevent the introduction of design that is not in keeping with Mussorie Village at Fiddler's Creek®, Declarant hereby declares that the style and form of Mussorie Village at Fiddler's Creek®, as originally constructed or approved by Declarant and the Foundation, with respect to architectural style, colors and materials as the standard. This standard shall continue in effect until the adoption and publication of new guidelines and standards. Except for work done by or on behalf of Declarant or any Declarant Affiliate, no structure or thing shall be placed, erected, or installed upon any Lot and no improvements of any kind or other work (including, without limitation, staking, clearing, excavation, grading and 17 1 7460589:9 16A4 other site work, exterior alterations or additions, or planting or removal of landscaping) shall take place within the Village, except in compliance with this Article, the Architectural Guidelines and the approval of the Design Review Committee ("DRC") pursuant to Section 9 of the Foundation Declaration. All Owners of Lots along or adjacent to the Lakes are prohibited from disturbing or removing any vegetation and are subject to certain restrictions regarding fences as set forth in Section 5.1(c) and in Exhibit C. An Owner shall not plant any shrubs, trees and/or landscaping on his or her Lot and/or in any manner alter the landscaping in the Village as initially installed by Declarant, without the prior written approval of Declarant and the Foundation, for as long as Declarant owns a Home, and thereafter without the prior written consent of the ARB and the Foundation. If an Owner receives such approvals and plants any shrubs, trees and/or landscaping on his or her Lot, such Owner shall be responsible for the payment of the increase in maintenance fees for the maintaining of such shrubs, trees and/or landscaping. Any Owner may remodel, paint, or redecorate the interior of the Home on his or her Lot without approval hereunder. However, modifications to the interior of screened porches, patios, and any other portions of a Lot or structure visible from outside a structure are subject to the approvals required under this Article. Improvements shall be constructed only by qualified Persons acceptable to the Reviewer [as defined in Section 4.2(c)] and the DRC. Owners shall be responsible for obtaining all permits and approvals from the County and other governmental agencies. This Article does not apply to Declarant's or its Affiliates' activities, nor to the Village Association's activities during the Development and Sale Period. 4.2. Architectural Review. Notwithstanding the creation of the ARB as set forth in this Article IV, no improvements, additions, deletions of any kind, including without limitation, any building, fence, wall, pool, screen enclosure, awning, drain, disposal system, painting or other improvement shall be commenced, erected, placed, maintained upon any Home or Lot, nor shall any addition, change, alteration, repair or replacement therein or thereof be made unless or until the plans and specifications (or paint color) for same have been approved by the DRC pursuant to Section 9 of the Foundation Declaration. (a) By Declarant. In addition to the DRC's approval, Declarant shall also have the authority to administer and enforce architectural controls and to review and act upon all applications for architectural and other improvements within the Village. Declarant's rights under this Article shall continue until termination of the Development and Sale Period, unless Declarant earlier terminates its rights in a recorded instrument. Declarant may designate one or more Persons to act on its behalf in reviewing any application. In reviewing and acting upon any 18 1 7460589:9 16A4 request for approval, Declarant or its designee acts solely in Declarant's interest and owes no duty to any other Person. Declarant may from time to time delegate or assign all or any portion of its rights under this Article to any other Person or committee, including the ARB. Any such delegation shall be in writing, shall specify the delegated responsibilities, and shall be subject to (i) Declarant's right to revoke such delegation at any time and reassume its prior jurisdiction, and (ii) Declarant's right to veto any decision which it determines, in its discretion, to be inappropriate or inadvisable for any reason. So long as Declarant has any rights under this Article, the jurisdiction of other entities shall be limited to such matters as Declarant specifically delegates. (b) Architectural Review Board. Upon Declarant's delegation or upon expiration or termination of Declarant's rights under this Article, the Village Association, acting through the ARB, shall assume jurisdiction over architectural matters. When appointed, the ARB shall consist of at least three (3), but not more than five (5), persons. Members of the ARB need not be Members of the Village Association or representatives of Members, and may, but need not, include architects, engineers, or similar professionals, who may be compensated in such manner and amount, if any, as the Board may establish. The ARB members shall serve and may be removed and replaced in the Board's discretion. Unless and until such time as Declarant delegates any of its reserved rights to the ARB or Declarant's rights under this Article terminate, the Village Association shall have no jurisdiction over architectural matters. (c) Reviewer. For purposes of this Article, the "Reviewer" is the Person having jurisdiction under this Section in a particular case. (d) Fees; Assistance. The Reviewer may establish and charge reasonable fees for its review of applications and may require that such fees be paid in advance. Such fees are in addition to any fees that may be charged by the DRC pursuant to the Foundation Documents. Such fees may include, without limitation, the reasonable costs incurred in having any application reviewed by architects, engineers, or other professionals the Reviewer employs or with whom it contracts. The Board may include the compensation of such Persons in the Village Association's annual operating budget. 4.3. Guidelines and Procedures. (a) Architectural Guidelines. Declarant may prepare the initial Architectural Guidelines, which may contain general provisions applicable to all of the Village as well as specific provisions that may vary according to location within the Village or product type. The Architectural Guidelines are intended to provide guidance to Owners regarding matters of particular concern to the Reviewer. The Architectural Guidelines are not the exclusive basis for 19 1 7460589:9 16A4 the Reviewer's decisions, and compliance with the Architectural Guidelines does not guarantee an application's approval. Declarant shall have sole and full authority to amend the Architectural Guidelines, from time to time, during the Development and Sale Period. Declarant's right to amend shall continue even if its reviewing authority is delegated to the ARB, unless Declarant also delegates the power to amend to the ARB. Upon termination or delegation of Declarant's right to amend, the Board may amend the Architectural Guidelines, subject to Declarant's veto right under Section 4.2(a) (if still applicable). Amendments to the Architectural Guidelines shall be prospective only. They shall not require modifications to or removal of structures, improvements, and other things previously approved once the approved construction or modification has begun. However, any new work or improvements on such structures must comply with the Architectural Guidelines as amended. Subject to the Village-Wide Standard, there is no limit to the scope of amendments to the Architectural Guidelines, and such amendments may remove requirements previously imposed or otherwise make the Architectural Guidelines less restrictive. The Reviewer shall make the Architectural Guidelines available to Owners and Builders who seek to engage in development or construction within the Village. In Declarant's discretion, the Architectural Guidelines may be recorded, in which event the recorded version, as it may be amended from time to time, shall control in the event of any dispute as to which version of the Architectural Guidelines was in effect at any particular time. (b) Procedures. Unless the Architectural Guidelines provide otherwise, no construction activities or other activities described in Section 4.1 may begin until a request is submitted to and approved in writing by the DRC and the Reviewer. The request must be in writing and be accompanied by plans and specifications and other information the DRC, Reviewer and/or the Architectural Guidelines require. Plans and specifications shall show, as applicable, site layout, structural design, exterior elevations, exterior materials and colors, landscaping, drainage, exterior lighting, irrigation, and other features of proposed construction or other activity as the DRC and the Reviewer deem relevant. In reviewing each submission, the DRC and the Reviewer may consider any factors it deems relevant, including, without limitation, harmony of the proposed design with surrounding structures and environment. Decisions may be based on purely aesthetic considerations. Each Owner acknowledges that aesthetic determinations are purely subjective and that opinions may vary as to the desirability and/or attractiveness of particular improvements. The DRC and the Reviewer shall have the discretion to make final, conclusive, and binding determinations on matters of aesthetic judgment and such determinations are not subject to review so long as they are made in good faith and in accordance with the required procedures. Once the DRC has approved the request, the Reviewer shall make a determination on each application within forty-five (45) days after receipt of a completed application along with the written approval from the DRC, and all other information the Reviewer requires. The 20 1 7460589:9 16A 4 Reviewer may permit or require that an application be submitted or considered in stages, in which case, a final decision shall not be required until forty-five (45) days after the final, required submission stage. The Reviewer may (i) approve the application, with or without conditions; (ii) approve a portion of the application, with or without conditions, and disapprove other portions; or (iii) disapprove the application. The Reviewer shall notify the applicant in writing of a final determination on any application. In the case of disapproval, the Reviewer may, but shall not be obligated to, specify the reasons for any objections and/or offer suggestions for curing any objections. The Owner must seek the DRC's written approval to any and all modifications to the request that are imposed by the Reviewer prior to the Reviewer's final determination if any conditions are imposed by the Reviewer. After the initial 45-day period has elapsed, if the Owner has not received notice of the Reviewer's determination, the Owner may make a second written request for approval of the plans previously submitted which shall be marked "Second Request." If the Reviewer fails to respond within seven (7) business days from receipt of the Second Request, approval shall be deemed given. However, no approval, whether expressly granted or deemed granted, shall be inconsistent with the Architectural Guidelines or other Village Documents unless a written variance has been granted pursuant to Section 4.6. Notwithstanding anything to the contrary in these Village Covenants or the Bylaws, Owners shall send any such "Second Request" via the U. S. Postal Service, certified mail, return receipt requested, or by commercial overnight carrier that obtains a signed receipt upon delivery. A Second Request shall be deemed made, and the seven (7) business day time period shall commence running, on the date of the Reviewer's actual receipt of the Second Request, as evidenced by its signature on the return receipt provided by the U. S. Postal Service or in the records of the overnight carrier, as applicable. As part of any approval, the DRC and/or the Reviewer may require that construction and landscaping in accordance with approved plans commence and be completed within a specified time period. If construction does not commence within the required period, the approval shall expire and the Owner must reapply for approval before commencing any activities within the scope of this Article. Once commenced, such activities must be diligently pursued to completion. All elements of the approved plans shall be completed within one year of commencement unless a shorter or longer period is otherwise specified in the notice of approval or the Architectural Guidelines, or unless the DRC and the Reviewer, in their discretion, grant extensions in writing. If approved work is not completed within the required time, it shall be in violation of this Article and shall be subject to enforcement action by the DRC, the Village Association or Declarant. Any approvals granted under this Article are conditioned upon completion of all elements of the approved work, unless written approval to modify any application has been obtained. Declarant or the ARB, by resolution, may exempt certain activities from the application and approval requirements of this Article, provided such activities are undertaken in 2! 17460589:9 16A4 strict compliance with the requirements of such resolution. Any such resolution shall require the written consent of the DRC. 4.4. Security Deposits for Improvements; Indemnification. Any Owner desiring to make Improvements may be required by the ARB, depending upon the Improvements being requested and the manner of installation of such Improvements, to provide to the ARB, at the time of the Owner's submission of plans and specifications for review and approval by the Reviewer, a Five Thousand Dollar ($5,000.00) security deposit to cover costs of incidental damage caused to Village Common Areas, an adjacent Home or Lot, or any other property (whether real or personal) by virtue of such Owner's construction of Improvements. Such security deposit is in addition to any security deposit that may required by the DRC. The ARB shall have the sole and absolute discretion to determine whether a security deposit is required for the Improvements being requested. The ARB shall not be obligated to place the security deposit in an interest bearing account. The Owner shall be entitled to the return of the security deposit upon: (i) such Owner's written notice to the ARB that the Improvements covered by the security deposit have been completed in accordance with the plans and specifications approved by the ARB, and (ii) the ARB's (or its duly authorized representative's) inspection of such Improvements confirming completion; provided, however, should any incidental damage be caused to Village Common Areas by virtue of such Owner's construction of Improvements, the security deposit shall not be returned to Owner until such damages have been repaired. In the event that Owner has not repaired such damages to the Village Common Areas to the satisfaction of the ARB, the ARB shall have the right (but not the obligation), after five (5) days notice to the offending Owner, to repair such incidental damage and to use so much of the security deposit held by the ARB to reimburse itself for the costs of such work. Further, the offending Owner hereby agrees to indemnify and reimburse the ARB for all reasonable costs expended by the ARB that exceed the security deposit, including Legal Fees, if any, incurred in connection therewith. Should any incidental damage be caused to an adjacent Lot or Home by virtue of such Owner's construction of Improvements, the Owner of the adjacent Lot (the "Adjacent Lot Owner") may, at such Adjacent Lot Owner's sole option: (a) remedy such damage and submit to the ARB a receipt, invoice or statement therefor for reimbursement from the offending Owner's security deposit; or (b) allow the offending Owner to repair such incidental damage to the Adjacent Lot Owner's Lot or Home, at the offending Owner's sole cost and expense, and upon receipt by the ARB of written notice from the Adjacent Lot Owner that such incidental damage has been repaired, the offending Owner shall be entitled to a return of the balance of the security deposit being held by the ARB, if any. Notwithstanding anything contained in this Section to the contrary, the ARB return of the security deposit being held by it for any such Improvements shall be based solely on considerations set forth above. The ARB's return of the security deposit does not and shall not be construed to constitute a determination by members and representatives of the ARB, Declarant, and/or the Village Association of the structural safety, approval or integrity of any Improvement, conformance with building or other codes or standards, or the proper issuance of governmental permits and approvals for any Improvement. By submitting a request for review and approval of proposed plans and specifications, along with the security deposit required hereunder, an Owner shall be deemed to have automatically agreed to hold harmless and indemnify the members and representatives of the ARB, Declarant, and the Village Association 72 1 7460589:9 16 * 4 generally, from any loss, claim, damage or liability connected with or arising out of the Improvements or alterations, and/or the security deposit (including, without limitation, the disbursement thereof). The ARB shall not be liable or responsible to anyone for any damages, losses or expenses resulting from the ARB's holding of the security deposit or disbursement thereof unless same shall be caused by the gross negligence or willful malfeasance of the ARB. In the event of any disagreement relating to the security deposit held by the ARB or the disbursement thereof, the ARB shall be entitled (but not obligated) to refuse to disburse the security deposit (or any portion thereof) as long as such disagreement may continue, and the ARB shall not become liable in any way for such refusal. The ARB shall have the right, at any time, after a dispute has arisen, to pay the security deposit (or any portion thereof) held by it into any court of competent jurisdiction for payment to the appropriate party, whereupon the ARB's obligations hereunder shall terminate and the ARB shall be automatically released of any and all obligations. 4.5. No Waiver of Future Approvals. Each Owner acknowledges that the people reviewing applications under this Article will change from time to time and that opinions on aesthetic matters, as well as interpretation and application of the Architectural Guidelines, may vary accordingly. In addition, each Owner acknowledges that it may not always be feasible to identify objectionable features until work is completed, at which time, it may or may not be unreasonable to require that such objectionable features be changed. However, the Reviewer may refuse to approve similar proposals in the future. Approval of applications or plans shall not constitute a waiver of the Reviewer's right to withhold approval of similar applications, plans, or other matters subsequently or additionally submitted for approval. 4.6. Variances. The Reviewer may authorize variances from compliance with the Architectural Guidelines and any procedures when circumstances such as topography, natural obstructions, hardship, or aesthetic or environmental considerations require, so long as the DRC provides its written approval of any such variances. No variance shall (a) be effective unless in writing; (b) be contrary to these Village Covenants or the Foundation Documents; or (c) prevent the Reviewer from denying a variance in other circumstances. A variance requires Declarant's written consent during the Development and Sale Period and, thereafter, requires the Board's written consent. If such variances are granted by the DRC and the Reviewer, no violation of the covenants, conditions and restrictions contained in these Village Covenants shall be deemed to have occurred with respect to the improvements for which the variance was granted. 4.7. Limitation of Liability. This Article establishes standards and procedures as a mechanism for maintaining and enhancing the overall aesthetics of the Village. The standards and procedures do not create any duty to any Person. Review and approval of any application pursuant to this Article may be based on purely aesthetic considerations. The Reviewer is not responsible for the structural 23 17460589:9 16A • 4 integrity or soundness of approved construction or modifications, for compliance with building codes and other governmental requirements, or for ensuring that every Home is of comparable quality, value, or size, of similar design, or aesthetically pleasing or otherwise acceptable to other Owners. Declarant, Declarant's Affiliates, any predecessor Declarant, the Village Association, its officers, the Board, the ARB, the Village Association's management agent, Foundation Declarant, the DRC, any committee, or any member of any of the foregoing shall not be held liable for the approval of, disapproval of, or failure to approve or disapprove any plans; soil conditions, drainage, or other general site work related to approved work; any defects in plans revised or approved hereunder; any loss or damage arising out of the action, inaction, integrity, financial condition, or quality of work of any owner or their contractor or their subcontractors, employees, or agents, whether or not Declarant has approved or featured such contractor as a Builder in the Village; or any injury, damages, or loss arising out of the manner or quality or other circumstances of approved construction on or modifications to any Lot or in any other way connected with the performance of the duties hereunder unless due to willful misconduct or bad faith. In all matters, the Village Association shall defend and indemnify and hold harmless Declarant, Declarant's Affiliates, Foundation Declarant, the DRC, any predecessor Declarant, the Board, the ARB, the members of each, and the Village Association officers as provided in the Articles. By submitting a request for review and approval, an Owner shall be deemed to have and does automatically agree to indemnify, defend and hold harmless Declarant, Declarant's Affiliates, any predecessor Declarant, the Village Association, its officers, the Board, the ARB, Foundation Declarant, the DRC, the Village Association's management agent, any committee, or any member of any of the foregoing, from and against any and all claims, causes of action, losses, damages, liabilities, costs and expenses (including, without limitation, Legal Costs) arising from, relating to or in any way connected with the Improvement or alterations for which such request was submitted and/or the security deposit (including, without limitation, the disbursement thereof). Furthermore, approval by the ARB and the DRC of any request does not excuse any Owner from also obtaining approvals from all applicable governmental authorities. 4.8. Enforcement. Any construction, alteration, improvement or other work done in violation of this Article or the Architectural Guidelines is subject to enforcement action pursuant to Section 7.4. Any act of any contractor, subcontractor, agent, employee, or invitee of an Owner shall be deemed to be an act done by or on behalf of such Owner. ARTICLE V MAINTENANCE AND REPAIR The responsibility for the maintenance of the Property is divided between the Village Association and the Owners. Interior maintenance of structures is the responsibility of the owners of such structures. The Village Association shall be responsible for the maintenance of the Village Common Area, the expenses of which shall be an Operating Expense. 1.4 17460589:9 16A 4 5.1. Maintenance of Lots. (a) By the Owners. Each Owner must maintain his or her Home in a manner consistent with the Village Documents, the Village-Wide Standard, and any other applicable covenants, except to the extent that such maintenance responsibility is assigned to or assumed by the Village Association, or assigned to the Village Association under these Village Covenants or any Supplemental Declaration or additional covenants applicable to such Lot. The Owner of each Home shall be responsible for any damages caused by a failure to so maintain such Home. The Owners' responsibility for maintenance, repair and replacement shall include, but not be limited to, all of the physical structures constructed in, upon, above or below the Lot, and physical items attached or connected to such structures that run beyond the boundary line of the Lot which exclusively service or benefit the Lot and Home. Without limiting the generality of the foregoing, the Owner of each Lot shall keep all drainage structures (such as catch basins) located on the Owner's Lot clear of grass, leaves and other debris. Additionally, the painting, caulking and maintenance of the exterior surface of all walls (including, but not limited to any masonry walls extended from the rear of the Home), doors, windows and roof of the physical structure of the Home shall be performed by the Owner, and the exterior surface of such walls, doors, windows and roof shall at all times be maintained in a good and serviceable condition with no damage or other defect therein by the Owner. The Owner of a Lot further agrees to pay for all utilities (including, without limitation, those provided by the Foundation), such as telephone, cable or satellite television, water, sewer, sanitation, electric, etc., that may be separately billed or charged to each Home. The Owner of each Lot shall be responsible for insect and pest control within the Home and the Lot. Whenever the maintenance, repair and replacement of any items which an Owner is obligated to maintain, repair or replace at such Owner's own expense is occasioned by any loss or damage which may be covered by any insurance maintained in force by the Village Association, the proceeds of the insurance received by the Village Association shall be used for the purpose of making such maintenance, repair or replacement, except that the Owner shall be, in said instance, required to pay such portion of the costs of such maintenance, repair and replacement as shall, by reason of the applicability of any deductibility provision of such insurance or otherwise, reduce the amount of the insurance proceeds applicable to such maintenance, repair or replacement. (i) Moisture Control. In addition to the foregoing, each Owner shall be required to maintain appropriate climate control, keep his or her Home clean, and take necessary measures to retard and prevent mold from accumulating in the Home. Each Owner shall be required to clean and dust the Home on a regular basis and to remove visible moisture accumulation on windows, window sills, walls, floors, ceilings and other surfaces as soon as reasonably possible and must not block or cover any heating, ventilation or air-conditioning ducts. Owners are required to report immediately in writing to the Board (i) any evidence of water leak or water infiltration or excessive moisture in the Home, and any other common elements; (ii) any evidence of mold that cannot be removed with a common household cleaner; (iii) any failure or malfunction in heating, ventilation or air conditioning, and (iv) any inoperable doors or windows. Each Owner shall be responsible for damage to the Home and personal property, as well as any injury to the Owner and/or occupants of the Home resulting from the Owner's failure to comply with these terms. Each Owner is fully responsible and liable for the 25 1 7460589:9 16A4 entire amount of all cleaning expenses and remediation costs incurred by the Village Association to remove mold from the Home if the Owner fails to remediate same and each Owner shall be responsible for the repair and remediation of all damages to the Home caused by mold. (b) By the Village Association. The Village Association shall perform, or cause to be performed, the following: (i) maintenance (including, mowing, fertilizing, edging, watering, pruning, and replacing, and controlling disease and insects), of all lawns and landscaping installed on the Lot as part of the initial construction of the Lots, specifically excluding landscaping within any enclosed area not readily accessible from outside the Home. (ii) operation, maintenance, repair, and replacement of any irrigation equipment (including, without limitation, any sprinklers, pumps, wells, water lines, and time clocks, wherever located) serving the Lots, except that the Association shall have no responsibility for any sprinklers or other irrigation equipment installed by the Owner or occupants of any Lot after issuance of a certificate of occupancy for the Home on the Lot. Notwithstanding the foregoing, each Owner shall be responsible for any damage caused to any portions of the irrigation system caused by such Owner and/or such Owner's family members, tenants, guests and invitees and Owner shall indemnify, defend and hold Association harmless from and against any and all losses, claims damages and/or liabilities resulting from any such damage. (c) Declarant or a Builder may have constructed or installed drainage swales, drainage lines, and/or other equipment on a Lot for the purpose of managing and/or containing the flow of excess surface water, if any, found upon such Lot from time to time. Except to the extent that such responsibility is assigned to or assumed by the Owners pursuant to these Village Covenants or any Supplemental Declaration, the Village Association shall be responsible for the maintenance, operation, and repair of such drainage swale(s), drainage lines, and other equipment. Maintenance, operation, and repair shall, without limitation, mean the exercise of practices, such as mowing and erosion repair, which allow the drainage swales, drainage lines, and other equipment to provide drainage, water storage, conveyance, or other storm water management capabilities as permitted by the SFWMD. Filling, excavation, construction of fences, or otherwise obstructing the surface water flow in or into the drainage swales, drainage lines, and other equipment is prohibited. No alteration of a drainage swale, drainage lines, and other equipment shall be authorized and any damage to any drainage swale, drainage lines, and other equipment, whether caused by natural or human-induced phenomena, shall be repaired and the drainage swale returned to its former condition as soon as possible by the Owner(s) of the Lot upon which the drainage Swale, drainage lines, and other equipment is located. (d) The Village Association shall have the right, but not the obligation, following a tropical storm, hurricane or other Act of God, to upright and/or remove any fallen or dislodged trees, at the respective Owner's cost and expense on (i) any Lot, and/or (ii) any grassed areas located between the front and/or side(s) of such Owner's Lot and the street; on behalf of the Owner of such Lot. The Owner of said Lot shall be required to reimburse the Association for the costs and expenses incurred by the Association in connection with the uprighting and/or 26 17460589:9 16A 4 removal of any fallen or dislodged trees. In that regard, the Village Association may levy a Special Assessment against such Lot in connection with such costs and expenses, to the exclusion of all other Owners. (e) The Village Association has a reasonable right of entry upon any Lot to make emergency repairs and to do other work reasonably necessary for the proper maintenance and operation of Mussorie Village at Fiddler's Creek®. (f) Unless otherwise specifically provided in the Village Documents or in other instruments creating and assigning maintenance responsibility, responsibility for maintenance includes responsibility for repair and replacement. The maintenance, repair, replacement, and other obligations of the Village Association and Owner specified in these Village Covenants shall be performed as and when the Board determines it necessary to maintain the property to a level consistent with the Village-Wide Standard. 5.2. Insurance on Lots; Casualty Losses. Each Owner shall maintain property insurance providing fire and extended coverage at full replacement cost, less a reasonable deductible, on all insurable improvements located on such Owner's Lot, to the extent such responsibility is not assigned to or assumed by the Village Association pursuant to these Village Covenants or any applicable Supplemental Declaration. In addition, every Owner shall be obligated to obtain and maintain at all times insurance covering consequential damages to any other Lot or the Village Common Area due to occurrences originating within the Owner's Lot caused by the negligence of the Owner, the failure of the Owner to maintain the Lot, and any other casualty within the Lot which causes damage to the Lots or the Village Common Area, to the extent such coverage is not provided by policies maintained by the Village Association or to the extent insurable losses may result in the Owner's liability for payment of deductibles under the Village Association's policies. Such insurance policy or policies shall name the Village Association as an additional insured. Unless a Mortgagee is named as the loss payee under any such policy, the Village Association shall be named as an additional loss payee. In the event of damage to or destruction of a structure on a Lot, the Owner shall promptly repair or reconstruct the structure in a manner consistent with the original construction or other plans and specifications approved in accordance with Article IV of these Village Covenants and Article IX of the Foundation Declaration. Each Owner shall provide a certificate evidencing such insurance to the Village Association within ten (10) days of any written request from the Board of Directors. In addition, if the Board so requests, each Owner shall file with the Village Association a copy of the individual policy or policies covering his or her Lot. Each Owner shall promptly notify the Board in writing in the event such policy on his or her Lot is canceled. In the event that an Owner fails to obtain any insurance which the Owner is required to obtain hereunder, or permits such insurance to lapse, the Village Association may, but shall not be obligated to, obtain such insurance on behalf of the Owner and assess the costs thereof to the Owner and the Owner's Lot. 27 1 7460589:9 16A4 In the event of damage to or destruction of a structure on a Lot, the Owner shall promptly repair or reconstruct the structure in a manner consistent with the original construction or other plans and specifications approved in accordance with Article IV of these Village Covenants and Article IX of the Foundation Declaration, except that if the Village Association has assumed responsibility for insurance coverage hereunder, the Village Association shall, subject to the limitations above, be responsible for repair or reconstruction of those portions of the structure on the Lot for which the Village Association has expressly, in writing, assumed insurance responsibility. Declarant, Builders and their respective Affiliates shall be exempt from the provisions of this Section 5.2, provided that any such reconstruction, rebuilding or repairs made by Declarant or Builder shall be consistent, as to the exterior appearance, with the improvements as they existed prior to the damage or other casualty. ARTICLE VI THE VILLAGE ASSOCIATION AND ITS MEMBERS 6.1. Function of Village Association. The Village Association is the entity responsible for management, maintenance, operation, and control of the Village Common Areas. The Village Association also has primary responsibility for administering and enforcing the Village Documents. The Village Association shall perform its functions in accordance with the Village Documents and Florida law. The Board shall be responsible for management of the Village Association and may contract with a property manager for such purposes. The Board is appointed or elected as provided in the Bylaws. Membership in the Village Association is appurtenant to and may not be severed from the Lot. The rights and obligations of a Member may not be assigned or delegated except as provided in these Village Covenants, the Articles of Incorporation, or Bylaws of the Village Association, and shall automatically pass to the successor-in-interest of any Owner upon conveyance of such Owner's interest in the Lot. 6.2. Membership. The Village Association initially shall have two (2) classes of membership, Class "A" and Class "B." Class "A" Members are all Owners of Lots in Mussorie Village at Fiddler's Creek®, except the Class "B" Member. The sole Class "B" Member shall be Declarant. The Class "B" membership shall terminate at Turnover. If a Lot is owned by more than one Person, each co-Owner shares the privileges of the membership, subject to reasonable Board regulation and the voting restrictions described in Section 6.3 and in the Articles. Co-Owners are jointly and severally obligated to perform the responsibilities of an Owner. The membership rights of an Owner that is not an individual (e.g., a corporation) may be exercised by any officer, director, partner, or trustee, or by an individual the Owner designates from time to time in a voting certificate provided to the Village Association's Secretary. 2R 17460589:9 16 A 4 6.3. Voting. (a) Class "A." Class "A" Members have one (1) equal vote for each Lot they own, except that there is only one (1) vote per Lot. (b) Class "B." The Class "B" Member shall have three (3) times the total number of votes of the Class "A" Members plus one (I). Upon termination of the Class "B" membership, Declarant shall be a Class "A" Member entitled to one Class "A" vote for each Lot it owns. Any vote associated with a Lot (i) owned by a husband and wife may be exercised by the husband or wife, subject to the provision of these Village Covenants, the Articles and the Bylaws, or (ii) owned by a corporation, partnership, trust or other entity or joint form of ownership, may only be exercised by the individual(s) listed on a voting certificate filed with the Board of Directors and then subject to Rules and Regulations of the Village Association. 6.4. Relationship to Fiddler's Creek Foundation, Inc.. (a) The Foundation. Mussorie Village at Fiddler's Creek® is a component of the larger master planned community known as Fiddler's Creek. All Owners, lessees, and occupants of Homes in Mussorie Village at Fiddler's Creek® shall have access to and use of various services and facilities provided by the Foundation in accordance with and subject to the Foundation Documents. Every Owner, by acceptance of a deed to a Lot and Completed Home, acknowledges that, in addition to being subject to and bound by the Village Documents, he or she is subject to and bound by the Foundation Documents and that he or she is automatically a Member of and subject to Assessment by the Foundation in accordance with the terms of the Foundation Declaration. Each Owner covenants and agrees to pay all Assessments levied against such Owner's Home by the Foundation. The "Voting Representative" (as defined in the Foundation Declaration) of the Village Association shall be the person appointed by the Board to act as same, who shall cast the votes for the Owners with respect to all Foundation matters requiring a membership vote pursuant to the Foundation Documents and the Bylaws of the Village Association. The Voting Representative of the Village Association shall cast the votes in the same manner as originally cast by the Members of the Village Association. In elections for Directors of the Foundation and all other votes of the Foundation and as provided in this Declaration, ballots from Owners shall be collected and tabulated by the Village Association. Upon receipt of notice of an election or other matter to be voted upon from the Secretary of the Foundation and receipt of ballots from each Owner, it shall be the duty of the Village Association to tabulate Owners' ballots for the Foundation Board and deliver all votes at the meeting of the Foundation. (b) Supremacy of the Foundation Documents. In addition to all of the rights and obligations which have been conferred or imposed upon the Village Association pursuant to the Village Documents, the Village Association shall be entitled to exercise any of the rights conferred upon it and shall be subject to all of the obligations imposed upon it pursuant to the Foundation Documents. The Association and all committees thereof shall also be subject to all superior rights and powers which have been conferred upon the Foundation pursuant to the 29 1 7460589:9 16A4 Foundation Documents. The Association shall take no action in derogation of the rights of the Foundat ion. (c) Cumulative Effect; Conflict. The provisions of the Village Documents shall be cumulative with the provisions of the Foundation Documents; however, in the event of conflict between or among the provisions of the Village Documents and the Foundation Documents, the latter shall be superior. The foregoing priorities shall not prevent enforcement by the Village Association of provisions or rules in the Village Documents which are stricter than those of the Foundation Documents. ARTICLE VII VILLAGE ASSOCIATION POWERS AND RESPONSIBILITIES 7.1. Acceptance and Control of Village Common Area (a) Declarant or Builder and their respective Affiliates, or their respective designees, may, from time to time, transfer to the Village Association, and the Village Association shall accept, personal property and/or fee title or other property interests in any improved or unimproved real property included within the Property. Subject to the provisions of Section 15.9, upon Declarant's request, the Village Association shall transfer back to Declarant or its designees any real property which has not been improved by a structure intended for occupancy, whether or not such property has been improved by landscaping, decorative walls, signs, irrigation, utilities, or other improvements, if originally conveyed to the Village Association for no payment. (b) The Village Association is responsible for management, operation, and control of the Village Common Area, subject to any covenants, easements, or restrictions set forth in the deed or other instrument transferring the property to the Village Association. The Village Association may enter into a property management agreement with any Person, including Declarant or any Declarant Affiliate. (c) Declarant may elect to construct or install certain improvements or facilities upon portions of the Village Common Area, but is not obligated to do so and may elect to leave portions of the Village Common Area in their natural unimproved state. Declarant shall have the absolute right and power to determine what improvements or facilities, if any, will be located on the Village Common Area during the Development and Sale Period. 7.2. Maintenance of Village Common Areas. The Village Association shall maintain (a) the Village Common Areas in accordance with the Village-Wide Standard. The Village Common Areas include the Landscape Buffer Easements ("L.B.E.") and Sign Easements ("S.E.") landscaping. signage, green space and other improvements located on the Village Common Area; and (b) such portions of Lots as are specifically identified as the Village Association's responsibility under Article V. The CDD shall own and be responsible for the maintenance, repair and replacement of the Surface Water and Storm Water Management System contained within the Property, but not 30 1 7460589:9 16A4 including any such areas, improvements, or equipment maintained by the County or any other governmental or quasi-governmental body. The Village Association is obligated to maintain, to oversee and provide for the continued, phased removal of nuisance, exotic plant species that become reestablished within the Village Common Area for the life of the Village consistent with Section 715.4 of the Collier County Land Development Code. The Village Association may maintain other property that it does not own, including property dedicated to the public, if the Board determines that such maintenance is necessary or desirable to maintain the Village-Wide Standard and the owner of such other property consents. The Village Association shall not be liable for any damage or injury occurring on or arising out of the condition of property which it does not own except to the extent that it has been grossly negligent in performing its maintenance responsibilities. Unless otherwise provided in these Village Covenants, the costs associated with maintenance, repair, and replacement of the Village Common Areas shall be an Operating Expense. Unless Declarant expressly agrees in writing with the Village Association to pay the costs of maintaining any portion of the Village Common Areas, Declarant shall have no such obligation, regardless of any inferences which may be drawn from promotional or other materials. Notwithstanding the foregoing, in the event Declarant determines that the Village Association is not operating, maintaining, repairing, replacing and/or managing the Village Common Areas in accordance with the Village Association's obligations hereunder, Declarant may (but is not obligated) rectify such failure by the Village Association after first providing the Village Association written notice thereof and an opportunity to cure such failure with fifteen (15) days after delivery of such written notice. In the event that the Village Association fails to so cure, then Declarant may do so on behalf of the Village Association and all fees, costs and expenses incurred by Declarant due to the Village Association's failure shall be reimbursed by the Village Association within ten (10) days following written demand therefor. All sums unpaid by the Village Association to Declarant shall bear interest at the maximum amount allowed by applicable law until repaid to Declarant in full. 7.3. Insurance for Village Common Areas. The Village Association shall keep all improvements, facilities, and fixtures located within the Village Common Areas insured against loss or damage by fire or other casualty for the full insurable replacement value thereof(with reasonable deductibles and normal exclusions for land, foundations, excavation costs and similar matters) and may obtain insurance against such other hazards and casualties as the Village Association may deem desirable. (a) Required Coverages. The Village Association, acting through its Board or its duly authorized agent, shall obtain and continue in effect any or all of the following types of insurance, as deemed necessary or advisable in the Board's business judgment and as may be reasonably available: (i) blanket property insurance covering all insurable improvements within 31 17460589:9 16A4 the Village Common Areas to the extent that the Village Association has responsibility for repair or reconstruction in the event of a casualty, regardless of ownership; (ii) commercial general liability insurance on the Village Common Areas of at least $1,000,000.00 (if available at reasonable rates and upon reasonable terms) insuring against liability for bodily injury, death, and property damage arising from the activities of the Village Association or with regards to Village Common Areas, including, if obtainable, a cross liability endorsement insuring each Member against liability to each other Member and the Village Association and vice versa; (iii) directors and officers liability coverage; (iv) commercial crime insurance, including fidelity insurance covering all Persons responsible for handling Village Association funds in an amount at least equal to three months of Assessments, plus all reserve funds; (v) to the extent any insurable improvements to Village Common Areas are within an "A" flood zone, flood insurance in an amount equal to the lesser of 100% of the replacement costs of all insurable improvements (if any) within the Village Common Areas or the maximum amount of coverage available under the National Flood Insurance Program; and (vi) such additional insurance as the Board, in its business judgment, determines advisable. Notwithstanding the foregoing, Declarant may obtain insurance for multiple communities which it is developing and/or other projects under a blanket policy instead of obtaining a separate policy for the Village Association, and charge a reasonable portion of the cost thereof to the Village Association. Premiums for Village Common Area insurance shall be an Operating Expense. (b) Policy Requirements. The Village Association shall arrange for an annual review of the sufficiency of its insurance coverage by one or more qualified Persons. All Village Association policies shall provide for a certificate of insurance to be furnished to the Village Association and, upon request, to each Member insured. To the extent obtainable at reasonable rates, the insurance policy(ies) maintained by the Village Association may contain provisions, or be accompanied by endorsements, for agreed amount and inflation guard, demolition costs, contingent liability from operation of building laws and increased costs of construction. All insurance policies shall contain standard mortgagee clauses, if applicable. The policies may contain a reasonable deductible which shall not be subtracted from the face amount of the policy in determining whether the policy limits satisfy the requirements of Section 7.3(a). In the event of an insured loss, the deductible shall be treated as an Operating Expense in the same manner as the premiums for the applicable insurance coverage. However, if the Board reasonably determines, after notice and an opportunity to be heard in accordance with the Bylaws, that the loss is the result of the negligence or willful misconduct of one or more Owners, their guests, invitees, or tenants, then the Board may assess the full amount of such deductible against such Owner(s) and their Lot(s). (c) Restoring Damaged Improvements. In the event of damage to or destruction of Village Common Area or other property which the Village Association is obligated to insure, the Board or its duly authorized agent shall file and adjust all insurance claims and obtain reliable and detailed estimates of the cost of repairing or restoring the property 17460589:9 16A4 to substantially the condition in which it existed prior to the damage, allowing for changes or improvements necessitated by changes in applicable building codes. (d) Waiver of Subrogation. As to each policy of insurance maintained by the Village Association which will not be voided or impaired thereby, the Village Association hereby waives and releases all claims against the Board, the Members, Declarant, any predecessor Declarant, the Foundation, Foundation Declarant, and the directors, trustees, officers, shareholders, attorneys, 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 Persons, but only to the extent that insurance proceeds are received in compensation for such loss. Damaged improvements on the Village Common Area shall be repaired or reconstructed unless Members representing at least 80% of the total votes in the Village Association and Declarant during the Development and Sale Period decide, within sixty (60) days after the loss, not to repair or reconstruct. If either the insurance proceeds or estimates of the loss, or both, are not available to the Village Association within such sixty (60) day period, then the period may be extended until such funds or information are available. No Mortgagees shall have the right to participate in the determination of whether the damage or destruction to the Village Common Area shall be repaired or reconstructed. If a decision is made not to restore the damaged improvements, and no alternative improvements are authorized, the affected property shall be cleared of all debris and ruins and thereafter shall be maintained by the Village Association in a neat and attractive condition consistent with the Village-Wide Standard. The Village Association shall deposit any insurance proceeds remaining after paying the costs of repair or reconstruction, or after an agreed-upon settlement, in a capital improvements account for the benefit of the Members. This is a covenant for the benefit of Mortgagees and may be enforced by the Mortgagee of any affected Lot. 7.4. Enforcement. (a) The Village Association, acting through the Board, may impose sanctions for violation of the Village Documents, subject to the notice and hearing procedures set forth in the Bylaws, as applicable. Such sanctions may include, without limitation: (i) imposing reasonable monetary fines, which may accrue from the date of notice (in the event that any occupant, guest or invitee of a Lot violates the Village Documents and a fine is imposed, the fine shall first be assessed against the violator; however, if the fine is not paid by the violator within the time period set by the Board, the Owner shall pay the fine upon notice from the Board); and (ii) suspending the vote attributable to the violating Owner's Lot; and 33 17460589:9 16A4 (iii) suspending any services which the Village Association provides to an Owner or the Owner's Lot if the Owner is more than thirty (30) days delinquent in paying any assessment or other charge owed to the Village Association; and (iv) without liability to any Person, precluding any contractor, subcontractor, agent, employee or other invitee of an Owner who fails to comply with the terms and provisions of Article IV and/or the Architectural Guidelines from continuing or performing any further activities in the Village; and (v) levying Benefited Assessments pursuant to Section 9.5 to cover costs which the Village Association incurs to bring a Lot into compliance with the Village Documents, including Legal Costs, or costs incurred as a consequence of the conduct of an Owner or occupant of a Lot, their guests or invitees. (b) In addition, but without limitation of the Village Association's other rights and remedies, the Village Association, acting through the Board or its designee, may take the following action to enforce the Village Documents without the necessity of compliance with the notice and hearing procedures set forth in the Bylaws: (i) requiring an Owner, at its own expense, to perform maintenance on such Owner's Lot to complete any construction or modification approved pursuant to Article IV, or to remove any structure, item or improvement on such Owner's Lot in violation of the Village Documents and to restore the Lot to its previous condition; or (ii) entering the property pursuant to the easement granted in Section 13.4 and exercising self-help to remove or cure a violating condition, or to complete any construction or modification approved pursuant to Article IV which was begun and not completed within the required time period, upon failure of an Owner to take action as required pursuant to subsection (i) above within ten (10) days after the Board's mailing of written notice to do so, and any such entry shall not be deemed a trespass (in the event of the occurrence of the same or similar violating condition within 12 months, the Owner shall not be entitled to any notice or opportunity to cure); or (iii) exercising self-help in any situation (specifically including, but not limited to, the towing of vehicles that are in violation of parking rules and regulations); and/or (iv) bringing suit at law or in equity to enjoin any violation or to recover monetary damages or both, subject to the procedures set forth in Article XVI, if applicable. (c) All remedies set forth in the Village Documents shall be cumulative of any remedies available at law or in equity. In any action to enforce the Village Documents, if the Village Association prevails, it shall be entitled to recover all Legal Costs incurred in any such action. 34 17460589:9 16A 4 (d) The Village Association's decision to pursue enforcement action in any particular case shall be left to the Board's discretion, except that the Board shall not be arbitrary or capricious in taking enforcement action. Without limiting the generality of the foregoing sentence, the Board may determine that, under the circumstances of a particular case: (i) the Village Association's position is not strong enough to justify taking any or further action; or (ii) the covenant, restriction, or rule being enforced is, or is likely to be construed as, inconsistent with applicable law; or (iii) although a technical violation may exist or may have occurred, it is not of such a material nature as to be objectionable to a reasonable person or to justify expending the Village Association's resources; or (iv) it is not in the Village Association's best interests, considering, among other things, hardship, expense, or other reasonable criteria, to pursue enforcement action. Such a decision shall not be construed a waiver of the right of the Village Association to enforce such provision at a later time under the same or other circumstances or preclude the Village Association from enforcing any other covenant, restriction, or rule. (e) The Village Association, by contract or other agreement, may enforce applicable governmental regulations and permit a governmental authority to enforce ordinances, rules, statutes, or laws within the Village for the benefit of the Village Association and its Members. (f) Declarant shall be entitled to exercise all of the rights and powers granted to the Village Association under Sections 7.4(a)(v), 7.4(b), and 7.4(c), and shall be entitled to recover all costs that it incurs in so doing from the responsible Owner to the same extent as the Village Association would be entitled to recover them after notice and a hearing under Sections 7.4(a)(v) and Section 7.4(c). (h) The covenants, conditions, restrictions and easements herein contained shall be enforced by Declarant (so long as Declarant holds an equitable or legal interest in any Home), the Village Association, any Owner and any Institutional Mortgagee holding a mortgage on any portion of the Property in any judicial proceeding seeking any remedy recognizable at law or in equity, including damages, injunction or any other form of relief against any person, firm or entity violating or attempting to violate any covenant, restriction, easement or provision hereunder. The failure by any party to enforce any such covenant, restriction, easement or provision herein contained shall in no event be deemed a waiver of such covenant, restriction, easement or provision or of the right of such party to thereafter enforce such covenant, restriction, easement or provision. The prevailing party in any such litigation shall be entitled to all costs thereof including, but not limited to, Legal Fees. 35 1 74605 59:9 16 A 4 7.5. Implied Rights; Board Authority. The Village Association may exercise any right or privilege given to it expressly or by reasonable implication by the Village Documents, and may take action reasonably necessary to effectuate any such right or privilege. Except as otherwise specifically provided in the Village Documents or by law, all of the Village Association's rights and powers may be exercised by the Board without a vote of the membership. The Board may institute, defend, settle, or intervene on the Village Association's behalf in mediation, binding or non-binding arbitration, litigation, or administrative proceedings in matters pertaining to the Village Common Areas, enforcement of the Village Documents, or any other civil claim or action. However, the Board has no legal duty to institute litigation on behalf of or in the name of the Village Association or the Members. In exercising the Village Association's rights and powers, making decisions on the Village Association's behalf, including, without limitation, deciding whether to file a lawsuit under any circumstances, and conducting the Village Association's affairs, Board members and the Village Association's officers are subject to, and their actions shall be judged in accordance with, the standards set forth in the Bylaws. Notwithstanding anything contained herein to the contrary, the Village Association shall be required to obtain the approval of three-fourths (3/4) of the total votes (at a duly called meeting of the Owners at which a quorum is present) prior to engaging persons or entities for the purpose of suing, or making, preparing or investigating any lawsuit, or commencing any lawsuit other than for the following purposes: (a) the collection of Assessments; (b) the collection of other charges which Owners are obligated to pay pursuant to the Village Documents; (c) the enforcement of the use and occupancy restrictions contained in the Village Documents; (d) the enforcement of Village Association rules; (e) the enforcement of the Architectural Guidelines; (f) the enforcement of a contract entered into by the Village Association with vendors providing services to the Village Association; (g) dealing with an emergency when waiting to obtain the approval of the Owners creates a substantial risk of irreparable injury to the Village Common Areas, any improvements or to Owner(s) (the imminent expiration of a statute of limitations shall not be deemed an emergency obviating the need for the requisite vote of three-fourths [3/4] of the total votes); or (h) filing a compulsory counterclaim. 36 17460589:9 16A4 7.6. Provision of Services to Lots. The Village Association may provide, or provide for, services and facilities for all or any of the Members, and may enter into contracts or agreements with other entities, including, without limitation, Declarant or its Affiliates, to provide such services and facilities. The Board may charge use or service fees for any such services and facilities, or may include the costs in the Village Association's budget as an Operating Expense and assess it as part of the Assessment, if provided to, or determined by the Board to be a benefit to, all Lots. By way of example, such services and facilities might include landscape maintenance, pest control service, security monitoring, caretaker, transportation and other services and facilities. Nothing in this Section shall be construed as a representation by Declarant or the Village Association as to what, if any, services or facilities shall be provided. In addition, subject to the contract terms, the Board may modify or cancel existing contracts for services in its discretion, unless the services are otherwise required by the Village Documents. Non-use of services or facilities provided to Owners as an Operating Expense, shall not exempt any Owner from the obligation to pay assessments for such services or facilities. 7.7. Relationships with Other Properties. The Village Association may enter into contractual agreements or covenants to share costs with any neighboring properties to contribute funds for, among other things, shared or mutually beneficial property or services and/or a higher level of maintenance of Village Common Areas. 7.8. Relationship with Governmental and Tax-Exempt Organizations. The Village Association may enter into agreements or contracts with, or grant exclusive and/or non-exclusive easements over the Village Common Area to, state or local governments, public or private utility providers, and non-profit, tax-exempt organizations for the benefit of the Village, the Village Association and the Members. The Village Association may contribute money, real property (including, without limitation, Village Common Area), personal property, or services to any such entity. Any such contribution may be an Operating Expense and included as a line item in the Village Association's annual budget. For the purposes of this Section, a "tax-exempt organization" shall mean an entity which is exempt from federal income taxes under the Internal Revenue Code ("Code"), such as, but not limited to, entities which are exempt from federal income taxes under Sections 501(c)(3) or 501(c)(4), as the Code may be amended from time to time. 7.9. Responsibilities Under Governmental Permits. Declarant shall have the absolute and unconditional right in its sole discretion to assign, delegate, or otherwise transfer to the Village Association any of its continuing obligations and/or responsibilities under governmental permits and approvals with respect to the Village. The 37 17460589:9 16A4 Village Association shall accept and assume such obligations and responsibilities without condition or consideration. Such assignment or transfer and assumption shall be effective without the consent of the Village Association, but upon Declarant's request, the Village Association shall promptly execute any documents which Declarant requests to evidence the assignment or transfer and assumption of such responsibilities. The Village Association shall comply in all respects with the terms of and shall not undertake any activity inconsistent with, such permits and approvals. The Village Association shall indemnify, defend and hold Declarant harmless from any claims or losses arising out of the violation or failure to comply with any permit(s), or out of the operation, maintenance or use of any improvement or facility authorized by the permit(s), provided such claim or loss first occurs after the effective date of the assignment, delegation, transfer (or tender of the assignment, delegation, or transfer, if wrongfully refused by the Village Association). 7.10. Waterways; Water Level and Use. With respect to any waterways now existing or which may hereafter be contained within or adjoining the Village, only the CDD shall have the right to pump or otherwise remove any water from such waterways for the purposes of irrigation or other use or to place any matter or object in such waterways. No docks, moorings, pilings, boat shelters, or other structure shall be erected on or over the waterways, except as may be erected or approved in writing by the Foundation, Foundation Declarant, Declarant and/or the CDD (and following the termination of the Class `B" Control Period, the CDD). Only Declarant (and after termination of the Class `B" Control Period, the Village Association) shall have the right to prescribe the schedule for watering of the landscaping in the Village and Village Common Areas (subject to applicable legal requirements). Boating, swimming, fishing, or any other recreational or entertainment activity or purpose is prohibited in all Lakes, ponds, canals, streams, and waterbodies within or adjacent to the Property unless specifically permitted by the Foundation. All Owners acknowledge that the Property is located within the boundaries of the SFWMD. Due to ground water elevations underneath the Property, priorities established by governmental authorities and other causes outside of the reasonable control of Declarant, the Village Association, the Foundation, Foundation Declarant and the CDD, water levels in the waterways may rise and fall significantly due to among other things, fluctuations in ground water elevations within the surrounding areas. Accordingly, Declarant, the Village Association, the Foundation, Foundation Declarant and the CDD have no control over such water levels and/or ground water elevations. Neither Declarant, the Village Association, the Foundation, Foundation Declarant nor the CDD shall have any liability for aesthetic conditions, objectionable odors, damage to plantings or direct or consequential damages of any nature caused by the fluctuation of water levels or water quality. Each Owner, by acceptance of title to a Lot, hereby releases Declarant, the Village Association, the Foundation, Foundation Declarant and the CDD from and against any and all losses, claims, demands, liabilities, damages. costs and expenses of whatever nature or kind (including, without limitation, attorneys' fees and courts costs at trial and all appellate levels), related to, arising out of and/or resulting from water levels in the waterways. 38 17460589:9 16A 4 DECLARANT, THE VILLAGE ASSOCIATION, FOUNDATION DECLARANT, THE FOUNDATION AND THE CDD SHALL NOT BE OBLIGATED TO PROVIDE SUPERVISORY PERSONNEL, INCLUDING, BUT NOT LIMITED TO, LIFEGUARDS FOR THE WATERWAYS. ANY INDIVIDUAL USING THE WATERWAYS SHALL DO SO AT HIS/HER OWN RISK AND HEREBY HOLDS DECLARANT, THE VILLAGE ASSOCIATION, FOUNDATION DECLARANT, THE FOUNDATION AND THE CDD HARMLESS FROM AND AGAINST ANY CLAIM OR LOSS ARISING FROM SUCH USE. EACH OWNER, BY THE ACCEPTANCE OF TITLE TO A LOT, ACKNOWLEDGES THAT THE WATERWAYS ARE DEEP AND DANGEROUS. NEITHER DECLARANT, THE VILLAGE ASSOCIATION, FOUNDATION DECLARANT, THE FOUNDATION, THE CDD, NOR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, COMMITTEE MEMBERS, EMPLOYEES, MANAGEMENT AGENTS, CONTRACTORS OR SUBCONTRACTORS (COLLECTIVELY, THE "LISTED PARTIES") SHALL BE LIABLE OR RESPONSIBLE FOR MAINTAINING OR ASSURING THE SAFETY, WATER QUALITY OR WATER LEVEL OF/IN ANY WATERWAY WITHIN MUSSORIE VILLAGE AT FIDDLER'S CREEK®, EXCEPT AS SUCH RESPONSIBILITY MAY BE SPECIFICALLY IMPOSED BY, OR CONTRACTED FOR WITH, AN APPLICABLE GOVERNMENTAL OR QUASI- GOVERNMENTAL AGENCY OR AUTHORITY. FURTHER, NONE OF THE LISTED PARTIES SHALL BE LIABLE FOR ANY PROPERTY DAMAGE, PERSONAL INJURY OR DEATH OCCURRING IN, OR OTHERWISE RELATED TO, ANY WATER BODY, ALL PERSONS USING SAME DOING SO AT THEIR OWN RISK. ALL OWNERS AND USERS OF ANY PORTION OF MUSSORIE VILLAGE AT FIDDLER'S CREEK® SHALL BE DEEMED, BY VIRTUE OF THEIR ACCEPTANCE OF THE DEED TO OR USE OF, SUCH PROPERTY, TO HAVE AGREED TO RELEASE THE LISTED PARTIES FROM ALL CLAIMS FOR ANY AND ALL CHANGES IN THE QUALITY AND LEVEL OF THE WATER IN SUCH BODIES. ALL PERSONS ARE HEREBY NOTIFIED THAT FROM TIME TO TIME WILDLIFE MAY HABITAT OR ENTER INTO WATER BODIES WITHIN OR NEARBY MUSSORIE VILLAGE AT FIDDLER'S CREEK® 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 OR INSURE AGAINST, ANY DEATH, INJURY OR DAMAGE CAUSED BY SUCH WILDLIFE. No planting, fencing or other improvements or additions by the Owners within any lake maintenance easement is permitted. No installation of sand or other materials intended to simulate a beach shall be permitted along the Lakes or rear yards of Lake Lots. No removal or damage to littoral or wetland plantings, if any, is permitted. Owners are prohibited from disturbing or removing any vegetation within the Lakes. 7.11. Surface Water and Storm Water Management System. The CDD shall be responsible for the maintenance, operation, repair, and replacement of the Surface Water and Storm Water Management System contained within the Property, in compliance with all governmental approvals and requirements of the SFWMD. Maintenance of the Surface Water and Storm Water Management System(s) shall mean the exercise or practices 39 7460589:9 16A 4 which allow the systems to provide drainage, water storage, conveyance, or other surface water or storm water management capabilities as permitted by the SFWMD and the County. Any repair or reconstruction of the Surface Water and Storm Water Management System shall be as permitted or, if modified, as approved by the SFWMD. The height, grade, and contour of such embankments shall not be changed without the prior written consent of the Foundation, the CDD, Declarant, the ARB, the SFWMD and/or the County. ARTICLE VIII COVENANT TO PAY ASSESSMENTS; ESTABLISHMENT OF LIENS; COLLECTION OF ASSESSMENTS; COLLECTION BY DECLARANT; CERTAIN RIGHTS OF DECLARANT AND INSTITUTIONAL MORTGAGEES 8.1. Affirmative Covenant To Pay Assessments. In order to: (i) fulfill the terms, provisions, covenants, conditions, restrictions, reservations, regulations, burdens, liens and easements contained in the Village Documents; and (ii) maintain, operate and preserve the Village Common Area for the use, safety, welfare and benefit of the Members and their family members, guests, invitees and tenants, there is hereby imposed upon each Completed Lot and Incomplete Lot and each Completed Lot Owner and Incomplete Lot Owner, the affirmative covenant and obligation to pay to the Village Association commencing from and after the first conveyance of a Completed Lot from Declarant as evidenced by the recordation of a deed in the Public Records of the County (in the manner herein set forth) all Assessments as more fully set forth herein, which Assessments may include, but may not be limited to, the Individual Lot Assessments, Benefited Assessments and Special Assessments. Each Owner, by acceptance of a deed or other instrument of conveyance conveying a Lot within the Property, whether or not it shall be so expressed in such deed or instrument, shall be obligated and agrees to pay to the Village Association all Assessments in accordance with the provisions of the Village Documents. 8.2. Operating Expenses. The following expenses of the Village Association are hereby declared to be Operating Expenses which the Village Association is obligated to assess and collect, and which the Owners are obligated to pay as provided herein or as may be otherwise provided in the Village Documents: (1) any and all taxes and tax liens which may be assessed or levied at any and all times against the Village Common Area, or against any and all personal property or Improvements thereon; (2) all charges levied for utilities providing services for the Village Common Area or to Owners on a bulk basis, and any type of utility or any other type of service charge which is not separately billed to an Owner; (3) the premiums on policies of insurance including, but not limited to, liability and casualty insurance for the Village Common Area and directors and officers liability insurance for the officers and directors of the Village Association; (4) any sums necessary for the maintenance and repair of the Village Common Area and all Improvements located thereon; (5) administrative and operational expenses; (6) any and all expenses deemed to he Operating Expenses by the Village Association and/or under these Village Covenants; and (7) any Assessments (as defined in the Foundation Declaration) levied upon and payable by the Village Association pursuant to the Foundation Declaration. The Board may, if it so determines, include reserves in the Village Association's annual budget. In 40 17460589:9 16Q 4 addition, any expense which is required by these Village Covenants to be the matter of Special Assessment shall not be deemed to be an Operating Expense. Expenses which are required to be the matter of Special Assessment include, by way of example but not by way of limitation, the following: the cost of reconstructing, replacing or improving the Village Common Area or any portion thereof or Improvements thereon; any casualty loss affecting the Village Association or the Village Common Area to the extent such loss exceeds the insurance proceeds, if any, receivable by the Village Association as a result of such loss; any judgment against the Village Association (or against a Director or Directors if and to the extent such Director is, or such Directors are, entitled to be indemnified by the Village Association therefor pursuant to the Articles) to the extent such judgment exceeds the insurance proceeds, if any, received by the Village Association as a result of such judgment, or an agreement by the Village Association (or such Director or Directors to whom indemnification is owed) to pay an amount in settlement of a lawsuit against it (or such Director or Directors) to the extent such settlement exceeds the insurance proceeds, if any, received by the Village Association as a result of such settlement agreement; and Legal Fees incurred by the Village Association in connection with litigation (whether incurred for the preparation, filing, prosecution or settlement thereof or otherwise), except Legal Fees incurred by the Village Association in connection with the collection of Assessments or other charges which Owners are obligated to pay pursuant to the Village Documents or the enforcement of the use and occupancy restrictions contained in the Village Documents, and except Legal Fees incurred for lawsuits not approved pursuant to Section 7.5. The Operating Expenses with respect to the Village Common Area are payable by each Completed Lot Owner to the Village Association notwithstanding the fact that Declarant may not have as yet conveyed title to the Village Common Area to the Village Association. 8.3. Establishment of Liens. Each Assessment against a Lot, together with Interest thereon and costs of collection, including, but not limited to, Legal Fees, shall be the personal obligation of the Owner of such Lot. Any and all Assessments made by the Village Association in accordance with the provisions of the Village Documents with Interest thereon and costs of collection, including, but not limited to, Legal Fees, are hereby declared to be a charge and continuing lien upon each Lot against which each such Assessment is made. Said lien shall be effective only from and after the time of the recordation amongst the Public Records of the County of a written, acknowledged statement by the Village Association setting forth the amount due to the Village Association as of the date the statement is signed. Upon full payment of all sums secured by that lien, the party making payment shall be entitled to a satisfaction of the statement of lien in recordable form. Notwithstanding anything to the contrary herein contained, except to the extent of any liability set forth in Chapter 720 Florida Statutes, in the event a first Institutional Mortgagee of record obtains a deed or title to a Lot as a result of foreclosure of its first mortgage or deed in lieu of foreclosure, such acquirer of a deed or title, its successors or assigns, shall not be liable for the share of Assessments pertaining to such Lot or chargeable to the former Owner thereof which became due prior to the acquisition of a deed or title as a result of the foreclosure or deed in lieu thereof, unless the Assessment against the Lot in question is secured by a claim of lien for Assessments that is recorded prior to the recordation of the mortgage which was foreclosed or with respect to which a deed in lieu of foreclosure was given. 41 17460589:9 164 8.4. Collection of Assessments. In the event any Owner shall fail to pay any Assessment, or installment thereof, charged to such Owner within fifteen (15) days after the same becomes due, then the Village Association, through its Board, shall have any and all of the following remedies to the extent permitted by law, which remedies are cumulative and which remedies are not in lieu of, but are in addition to, all other remedies available to the Village Association: (a) To accelerate the entire amount of any Assessment for the remainder of the calendar year notwithstanding any provisions for the payment thereof in installments. (b) To advance on behalf of the Owner(s) in default funds to accomplish the needs of the Village Association up to and including the full amount for which such Owner(s) is (are) liable to the Village Association and the amount or amounts of monies so advanced, together with Interest and all costs of collection thereof, including, but not limited to, Legal Fees, may thereupon be collected by the Village Association from the Owner(s) and such advance by the Village Association shall not waive the default. (c) To file an action in equity to foreclose its lien at any time after the effective date thereof as provided in Section 8.3 hereinabove. The lien may be foreclosed by an action in the name of the Village Association in like manner as a foreclosure of a mortgage on real property. (d) To file an action at law to collect said Assessment plus Interest and all costs of collection thereof, including, but not limited to, Legal Fees, without waiving any lien rights or rights of foreclosure in the Village Association. (e) To charge Interest on such Assessment from the date it becomes due, as well as a late charge of Twenty-Five and No/100 ($25.00) Dollars or five percent (5%) of the past due amount, whichever is greater, by the Village Association to defray additional collection costs. (f) To suspend the right of the Owner(s) in default to vote on any matter on which Owners have the right to vote if such Owner is delinquent in payment of assessments for more than ninety (90) days. 8.5. Collection by Declarant. In the event for any reason the Village Association shall fail to collect the Assessments, Declarant shall at all times have the right (but not the obligation): (i) to advance such sums as the Village Association could have advanced as set forth above; and (ii) to collect such Assessments and, if applicable, any such sums advanced by Declarant, together with Interest and costs of collection, including, but not limited to, Legal Fees. 42 17460589:9 16A4 8.6. Rights of Declarant and Institutional Mortgagees to Pay Assessments and Receive Reimbursement. Declarant and any Institutional Mortgagee(s) shall have the right, but not the obligation, jointly or individually, and at their sole option, to pay any of the Assessments which are in default and which may or have become a charge against any Lot(s). Further, Declarant and any Institutional Mortgagee shall have the right, but not the obligation,jointly or individually, and, at their sole option, to pay insurance premiums or fidelity bond premiums or other required items of Operating Expenses on behalf of the Village Association in the event the same are overdue and when lapses in policies or services may occur. Declarant and any Institutional Mortgagee paying overdue Operating Expenses on behalf of the Village Association will be entitled to immediate reimbursement from the Village Association plus Interest and any costs of collection including, but not limited to, Legal Fees, and the Village Association shall execute an instrument in recordable form acknowledging such reimbursement obligation(s) and deliver the original of such instrument to each Institutional Mortgagee who is so entitled to reimbursement and to Declarant if Declarant is entitled to reimbursement. ARTICLE IX METHOD OF DETERMINING ASSESSMENTS AND ALLOCATION OF ASSESSMENTS 9.1. Determining Amount of Assessments. The total anticipated Operating Expenses for each calendar year shall be set forth in the budget ("Budget") prepared by the Board as required under the Village Documents. Each Completed Lot and Incomplete Lot shall be assessed its pro rata portion of the total anticipated Operating Expenses, which shall be the "Individual Lot Assessment" as to each Lot. The Individual Lot Assessment shall be based upon the level of service to each Lot and upon the state of the Lot's development, with the Owners of Completed Lots paying the Operating Expenses on a twenty to one ratio (20:1) compared to the Owners of Incomplete Lots as set forth below. Therefore, the Completed Lot Owners and Incomplete Lot Owners shall share the payment of the Operating Expenses on a ratio of twenty to one (20:1). The total anticipated Operating Expenses (other than those expenses which are properly the subject of Special Assessment) shall be divided by the total number of Completed Lots multiplied by twenty (20) plus the number of Incomplete Lots, with the quotient thus arrived at being the "Individual Lot Assessment" for an Incomplete Lot. Said quotient multiplied by twenty (20) shall be the Individual Lot Assessment for a Completed Lot. The number of Completed Lots and Incomplete Lots shall be adjusted quarterly, as needed, as hereinafter set forth. At such time as Declarant has conveyed all of the Homes on all of the Lots, each Lot shall be a Completed Lot and the Individual Lot Assessment shall be equal for each Lot. Notwithstanding anything in the Village Documents to the contrary, any Assessment for Legal Fees incurred by the Village Association for lawsuits shall be deemed an Operating Expense which is properly the subject of Special Assessment and not the subject of an Individual Lot Assessment so long as approved pursuant to Section 9.3 except the Legal Fees incurred by the Village Association in connection with the collection of assessments or other charges which Owners are obligated to pay pursuant to the Village Documents or the enforcement of the use and occupancy restrictions contained in the Village Documents. 43 17460589:9 16 A 4 9.2. Assessment Payments. Individual Lot Assessments shall be payable quarterly, in advance, on the first day of January, April, July and October of each year, provided, however, at the Village Association's option, Individual Lot Assessments may be payable monthly. Individual Lot Assessments, and the quarterly or monthly installments thereof, may be adjusted from time to time, but no less frequently than quarterly, by the Board to reflect changes in the number and status of Completed Lots (thus apportioning all such Assessments and installments thereof among all Completed Lots at the time such installment is due) or changes in the Budget or in the event the Board determines that an Assessment or any installment thereof is either less than or more than the amount actually required. 9.3. Special Assessments. "Special Assessments" include, in addition to other Assessments designated as Special Assessments in the Village Documents and whether or not for a cost or expense which is included within the definition of"Operating Expenses," those Assessments which are levied for capital improvements which include the costs (whether in whole or in part) of constructing or acquiring Improvements for, or on, the Village Common Area or the cost (whether in whole or in part) of reconstructing or replacing such Improvements. In addition, Special Assessments may be levied against particular Lots to the exclusion of others. Notwithstanding anything to the contrary herein contained, it is recognized and declared that Special Assessments shall be in addition to, and are not part of, any Individual Lot Assessment. Any Special Assessments assessed against Lots and the Owners thereof shall be paid by such Owners in addition to any other Assessments and shall be assessed in the same manner as the Individual Lot Assessment. Special Assessments shall be paid in such installments or in a lump sum as the Board shall, from time to time, determine. Notwithstanding the foregoing, the levying of any Special Assessment after Turnover shall require the affirmative assent of at least two-thirds (2/3) of the vote of all Members at a meeting called and held in accordance with the Bylaws, however, and notwithstanding anything in these Village Covenants to the contrary, the Board acting alone and without the consent of Members may levy Special Assessments for the following: (a) repair, reconstruction, or replacement of damaged or destroyed Improvements previously existing on Village Common Area (including, without limitation, landscaping), (b) capital improvements necessary or desirable for the sole purpose of preservation of, or prevention of damage to, Village Common Area, or (c) uprighting or removing any fallen or dislodged trees as set forth in Section 5.1(d) above; which shall not require such affirmative assent of at least two-thirds (2/3) of the votes of all Members. Prior to the Turnover, a Declarant controlled Board may not levy a Special Assessment unless a majority of the Members (other than Declarant) has approved the Special Assessment by a majority vote at a duly called special meeting of the Members at which a quorum is present. 9.4. Liability of Owners of Individual Lot Assessments. By the acceptance of a deed or other instrument of conveyance of a Lot in the Property, each Owner thereof acknowledges that each Lot and the Owners thereof are jointly and severally liable for their own Individual Lot Assessments and their applicable portion of any Special Assessments, as well as for any and all other Assessments for which they are liable, as provided 44 1 7460589:9 16A4 for herein. Such Owners further recognize and covenant that they are jointly and severally liable with the Owners of all Lots for the Operating Expenses (subject to any specific limitations provided for herein such as, but not limited to, the limitation with respect to matters of Special Assessment and the limitations on the liability of Institutional Mortgagees and their successors and assigns). Accordingly, subject to such specific limitations, it is recognized and agreed by each Owner, for such Owner and such Owner's heirs, executors, successors and assigns, that in the event any Owner fails or refuses to pay such Owner's Individual Lot Assessment or any portion thereof, or such Owner's respective portion of any Special Assessment or any other Assessment, then the other Owners may be responsible for increased Individual Lot Assessments or Special Assessments or other Assessments due to the nonpayment by such other Owner, and such increased Individual Lot Assessment or Special Assessment or other Assessment can and may be enforced by the Village Association and Declarant in the same manner as all other Assessments hereunder as provided in the Village Documents. 9.5. Benefited Assessments. The Village Association may levy "Benefited Assessments" against one or more particular Lots as follows: (a) to cover the costs, including, without limitation, overhead and administrative costs, of providing services to a Lot upon request of the Owner pursuant to any menu of special services which the Village Association may offer (which might include the items identified in Section 7.6) or pursuant to a Supplemental Declaration. Benefited Assessments for special services may be levied in advance of the provision of the requested service; (b) to cover costs incurred in bringing a Lot into compliance with the Village Documents, or costs incurred as a consequence of the conduct of the Owner or occupants of the Lot, their agents, contractors, employees, licensees, invitees, or guests, including, without limitation, Legal Costs, subject to the limitations of Section 7.4, as applicable; (c) to cover the costs and expenses charged to the Village Association pursuant to any contract for Lot landscape maintenance. (d) to cover the costs and expenses charged to the Village Association for irrigation of the Lot. 9.6. Budgeting for Reserves. The Board may prepare and periodically review a reserve budget for the Village Common Area which take into account the number and nature of replaceable assets, the expected life of each asset, and the expected repair or replacement cost of capital items under each budget. The Board may include in the Operating Expense budget adopted pursuant to Section 9.1, a contribution to fund reserves in an amount which the Board, in the exercise of its business judgment, deems sufficient to meet the projected needs under each budget with respect to both amount and timing by annual contributions over the budget period. 45 17460589:9 16A4 Reserve funds, if collected, shall be held in a separate account or accounts from the operating and other funds of the Village Association. The reserve funds held in each account may be expended only for major maintenance, repair, or replacement of those assets covered by the reserve budget pursuant to which they were collected. Subject to such limitation, the Board may adopt resolutions regarding the expenditure of any reserve funds including, without limitation, policies designating the nature of assets for which reserve funds may be expended. Neither the Village Association membership nor the Board shall adopt, modify, limit, or expand such policies without Declarant's prior written consent during the Development and Sale Period. 9.7. Assessments Payable by Declarant; Declarant Subsidies. Each Owner acknowledges and agrees that because Individual Lot Assessments and Special Assessments are allocated as set forth in this Article IX above, it is possible that the Village Association may collect more or less than the amount budgeted for Operating Expenses in the Budget of the Village Association. Except as may be limited by applicable law, Declarant has the right (at its sole election) to: (i) pay Assessments for the Lots owned by Declarant in the same manner as other Owners, (ii) to be excused from paying its share of Assessments related to the Lots owned by Declarant and pay the Deficit (as hereinafter defined), and/or (iii) subsidize the Budget of the Village Association as provided below by making voluntary contributions in amounts determined by Declarant in Declarant's sole discretion. During the period of time that Declarant is offering Homes for sale in Mussorie Village at Fiddler's Creek® and/or based on the number of Homes owned by Owners other than Declarant, Declarant may seek to keep Assessments lower than they otherwise be by subsidizing the Budget of the Village Association by making voluntary contributions in amounts determined by Declarant. The amount of any such voluntary contributions may vary from time to time or may be discontinued and recommenced by Declarant from time to time. The determination to subsidize the Budget of the Village Association, the amount of any such voluntary contribution, the discontinuance and/or recommencement of any such voluntary contributions shall all be made by Declarant in Declarant's sole discretion and in no event shall Declarant have any obligation whatsoever to make any such voluntary contributions. Each Owner shall be solely responsible to review the Budget of the Village Association then in effect to determine if and to what extent Declarant is making any voluntary contributions to subsidize the Budget and thus lower the Assessments payable by the Owners that would otherwise be higher based on the Operating Expenses of the Village Association. 9.8. Working Fund Contribution. Each Owner of a Lot, other than Declarant, shall pay to the Village Association a Working Fund Contribution at the time legal title is conveyed to such Owner. The Working Fund Contribution shall be an amount equal to one months' assessment for each Lot and each subsequent conveyance of the Lot. The amount of the Working Fund Contribution is subject to change in the Board's sole discretion. The purpose of the Working Fund Contribution is to insure that the Village Association will have cash available for initial start-up expenses, to meet 46 17460589:9 16A4 unforeseen expenditures and to acquire additional equipment and services deemed necessary or desirable by the Board. Working Fund Contributions are not advance payments of Individual Lot Assessments and shall have no effect on future Individual Lot Assessments, nor will they be held in reserve. To further ensure that the Village Association will have sufficient cash available to pay for start-up expenses, Operating Expenses and other expenses, Declarant may from time to time advance to the Village Association the Working Fund Contribution applicable to any Lot(s) prior to the time legal title to such Lot(s) is conveyed to the Owner(s) thereof. In the event Declarant advances the Working Fund Contribution applicable to any Lot, then, at the time legal title to such Lot is conveyed to the Owner thereof, the Working Fund Contribution to be paid by such Owner to the Village Association pursuant to this Section 9.8 shall be paid directly to Declarant in reimbursement of the advance, instead of to the Village Association. Working Fund Contributions (whether paid by Owner or advanced by Declarant) may also be used to offset Operating Expenses. • 9.9. Waiver of Use. No Owner, other than Declarant, may exempt himself from personal liability for Assessments duly levied by the Village Association. No Owner may release the Lot owned by such Owner from the liens and charges hereof either by waiver of the use and enjoyment of the Village Common Area and the facilities thereon or by abandonment of such Owner's Home. ARTICLE X REMOVAL OF PROPERTY Declarant reserves the right to amend these Village Covenants from time to time prior to Turnover, in its sole discretion, without the prior notice or consent of any Person to remove any portions of the Property then owned by Declarant (or any affiliate of Declarant) or by the Village Association from the provisions of these Village Covenants if, and to the extent, such property was originally subjected to these Village Covenants in error, or if Declarant changes the development plan for the Property; provided, however, that Declarant, concurrently with such removal, shall grant and/or confirm such easements as are necessary for maintenance and/or construction of those Lots theretofore conveyed by Declarant. ARTICLE XI DEVELOPMENT PLAN 1 1.1. Mussorie Village at Fiddler's Creek®. Mussorie Village at Fiddler's Creek® is a planned residential community. It is presently anticipated that Mussorie Village at Fiddler's Creek®, when fully developed, will be comprised of fifty-four (54) Homes and the property encompassing the Village Common Area, as more particularly defined by these Village Covenants. The property declared hereunder is described on Exhibit "A" attached hereto, and may be reduced in size as described in Article X herein. Notwithstanding the foregoing, however, Declarant reserves the right to modify its plan of development of Mussorie Village at Fiddler's Creek® (including, without limitation, the right to modify the site plan and the right to change the Home product types and reduce the number of Homes to be constructed within Mussorie Village at Fiddler's Creek® and the right to add 47 I 7460589:9 16A4 additional Village Common Area) and/or the right to withdraw land from Mussorie Village at Fiddler's Creek® in its sole and absolute discretion. Therefore, in the event Declarant modifies its plan of development of Mussorie Village at Fiddler's Creek® and/or withdraws land from Mussorie Village at Fiddler's Creek®, the number of Lots, the layout of Lots and/or the size of Lots within Mussorie Village at Fiddler's Creek® may change and as a result of any changes in the number of Lots, the Assessments required to be paid pursuant to these Village Covenants may increase or decrease as appropriate. Declarant's general plan of development further contemplates that such Homes shall be whatever types of structures Declarant may choose which are in conformance with applicable governmental rules and regulations. Declarant's general plan of development of Mussorie Village at Fiddler's Creek® may also include whatever facilities and amenities Declarant considers in its sole judgment to be appropriate to Mussorie Village at Fiddler's Creek®, as well as any changes thereto. Declarant expressly reserves the right as to the property comprising Mussorie Village at Fiddler's Creek® to (i) commence construction and development of Mussorie Village at Fiddler's Creek® if and when Declarant desires; (ii) develop Mussorie Village at Fiddler's Creek® upon such timetable as Declarant, in its sole discretion, chooses; and (iii) modify the Development Plan of Mussorie Village at Fiddler's Creek® in such manner as it, in its sole discretion, chooses. Nothing contained herein shall be construed as obligating Declarant to construct Mussorie Village at Fiddler's Creek® according to the present Development Plan. 11.2. Village Common Area. The Village Common Area within Mussorie Village at Fiddler's Creek® includes the Landscape Buffer Easements ("L.B.E.") and Sign Easements ("S.E.") as shown on the Plat. The Village Common Area shall be used for landscaping and signs. Village Common Area may not be altered, modified, removed or replaced by Owners or their family members, guests, invitees or lessees. The Village Association and each Owner acknowledges and agrees that Declarant has or will install trees, shrubs, plants and other landscaping consistent with a landscape plan that meets or exceeds the requirements of the applicable governmental requirements and that from the time of such initial installation, such trees, shrubs, plants and other landscaping may mature, expand, decay and/or die from time to time. After Turnover, the Village Association shall have no claim whatsoever against Declarant and hereby releases any and all claims against Declarant for any trees, shrubs, plants and other landscaping that has decayed or died regardless of the reasons therefor so long as all of the remaining trees, shrubs, plants and other landscaping, when looked at as a whole, exceed the minimum requirements of the applicable governmental requirements for Mussorie Village at Fiddler's Creek®. 1 I.3. Fiddler's Creek®. Foundation Declarant is the developer of Fiddler's Creek®. The Foundation Declaration sets forth Foundation Declarant's plan for development of Fiddler's Creek®. Foundation Declarant plans to develop Fiddler's Creek® as a large-scale master planned multi-phase community comprising residential, recreational and commercial uses, and the property encompassing the "Common Areas" and "Recreational Property" (as defined in the Foundation 48 17460589:9 16A4 Declaration). Certain developments such as single family or condominium may be grouped together as a Village. The Foundation is responsible for the maintenance of the Common Areas and Recreational Property. Portions of Fiddler's Creek® are developed around and in conjunction with recreation-type clubs. These clubs may be public, private, equity or non-equity which may own and operate tennis, golf, swimming and social functions. The ownership of a Lot does not confer any use rights to the facilities or membership in a club except as otherwise stated herein and in the Foundation Documents. Mussorie Village at Fiddler's Creek® is one of the Villages in Fiddler's Creek® as more particularly described in the Foundation Declaration. 11.4. The Tarpon Club and The Country Clubs at Fiddler's Creek®. The Tarpon Club and The Country Clubs at Fiddler's Creek® (collectively hereinafter referred to as the "Country Clubs") are private clubs within Fiddler's Creek®, comprising golf courses, restaurants, pro-shops, and uses ancillary or customary thereto, which are available for use only by the members of such Country Clubs. The Country Clubs are not part of the Property and each Owner by accepting title to a Lot thereby acknowledges that ownership of a Lot in Mussorie Village at Fiddler's Creek® does not give any vested right or easement, prescriptive or otherwise, to use the Country Clubs or the Country Clubs' facilities now or hereafter constructed within Fiddler's Creek®, and does not grant any ownership, membership or use interest therein. The facilities of the Country Clubs are developed at the discretion of the Country Clubs' owner(s). The Country Clubs' owner(s) have the exclusive right to determine from time to time, in their sole discretion and without notice or approval of any change, how and by whom these facilities shall be used, if at all. Every Owner, by acceptance of a deed to a Lot, acknowledges that the Country Clubs, which are not part of Mussorie Village at Fiddler's Creek®, are privately owned and that the owner(s) of the Country Clubs retain the unconditional right to close, sell, lease or otherwise restrict access to such golf course and related facilities. The Country Clubs are not, and are not intended to be, part of the Recreational Property or Common Areas of the Foundation. The Country Clubs shall be made available for use on such terms and conditions and payment of such fees and charges as are established by the owner(s) of the Country Clubs from time to time. By accepting title to a Lot, the Owners acknowledge that, except as set forth herein, no other representations or warranties, either verbal or written, have been or are made regarding the continuing ownership of or use rights in any golf course, or that any golf course is owned by or will become Common Area or Recreational Property of the Foundation, property of the Village Association, or common area or common elements of any other homeowners association or the property thereof. Declarant is not the developer of the Country Clubs. Declarant makes no representation or warranty regarding the Country Clubs nor any of the documents and instruments associated with the Country Clubs. 11.5. Fiddler's Creek® Community Development District 2. Foundation Declarant has established a uniform community development district, as defined in Chapter 190, Florida Statutes, known as Fiddler's Creek® Community Development District 2 (hereinafter "CDD"), which includes the Property and which may include all or a portion of Fiddler's Creek®, and may also include property in addition to Fiddler's Creek®. The 49 1 7460589:9 16A4 CDD will provide certain urban community development services and will have the authority to levy and collect fees, rates, charges, taxes and assessments to pay for, finance and provide such services. The CDD will impose taxes and/or assessments on Fiddler's Creek® through a special taxing district. These taxes will pay for the construction, operation, and/or maintenance costs of certain public facilities within the CDD and will be set annually by the governing board of the CDD. These taxes and assessments are in addition to county and all other taxes and assessment provided for by law. These fees, rates, charges, taxes and assessments will either appear on the annual real estate tax bill for each Owner in which case they will be payable directly to the Collier County Tax Collector or they will appear on a separate bill issued to each Owner by the CDD. All taxes of the CDD shall constitute a lien upon those portions of Fiddler's Creek® owned by Owners. The CDD shall have the power to issue any types of bonds permitted by Chapter 190, Florida Statutes. 11.6. Taxes and Assessments.. COMMUNITY DEVELOPMENT DISTRICTS ("DISTRICTS") ARE SPECIAL SINGLE PURPOSE LOCAL GOVERNMENTAL AGENCIES CREATED BY GENERAL LAW AND ESTABLISHED BY RULE TO PROVIDE INFRASTRUCTURE TO COMMUNITY DEVELOPMENTS. THE DISTRICTS HAVE THE POWER TO MANAGE THROUGH PLANNING, IMPLEMENTATION, CONSTRUCTION AND MAINTENANCE OF CERTAIN SYSTEMS, FACILITIES AND SERVICES CONSTITUTING BASIC INFRASTRUCTURE TO THE LANDS WITHIN THE COMMUNITY DEVELOPMENT. THE DISTRICTS ALSO HAVE THE POWER TO FINANCE THESE MANAGEMENT FUNCTIONS, INCLUDING THE PAYMENT FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF SUCH BASIC INFRASTRUCTURE, THROUGH THE LEVY OF CERTAIN AD VALOREM TAXES AND NON-AD VALOREM SPECIAL ASSESSMENTS CONSTITUTING LIENS ON THE PROPERTY AGAINST WHICH LEVIED. THESE LEVIES ARE SET ANNUALLY BY THE GOVERNING BOARD OF SUPERVISORS OF THE DISTRICTS. THESE LIENABLE LEVIES MAY BE LISTED SEPARATELY ON THE OFFICIAL TAX NOTICE ("BILL") MAILED EACH NOVEMBER BY THE TAX COLLECTOR WHICH ALSO LISTS AND TOTALS ALL OTHER AD VALOREM TAXES AND NON-AD VALOREM SPECIAL ASSESSMENTS WHICH MAY BE LEVIED BY THE COUNTY AND OTHER GOVERNMENTS AS PROVIDED FOR BY LAW. THE MEETINGS OF THE BOARD OF SUPERVISORS OF THE DISTRICT ARE PUBLIC NOTICED MEETINGS PURSUANT TO GOVERNMENT-IN-THE-SUNSHINE LAW. ARTICLE XII ADDITIONAL RIGHTS RESERVED TO DECLARANT 12.1. Marketing and Sales Activities. Notwithstanding anything in the Village Documents to the contrary, Declarant, its Affiliates, and their assigns and Builders and their Affiliates may construct, maintain, and operate upon portions of the Village Common Area and property they own, such facilities, activities, and things as, Declarant, in its discretion, may deem to be required, convenient, or incidental to the construction or sale of Lots, including Declarant's rights to maintain a sales office. Such permitted facilities, activities, and things shall include, without limitation, business 50 17460589:9 16A4 offices, signs, flags (whether hung from flag poles or attached to a structure), model homes, sales offices, construction offices, service offices, holding or sponsoring special events, and exterior lighting features or displays. In addition, if reasonably required, convenient, or incidental to construction or sales activities, Declarant, Declarant's Affiliates, and their assigns, and authorized Builders may park vehicles in areas other than garages or driveways, including, without limitation, on streets. By Owner's acceptance of a deed for a Lot, such Owner agrees and acknowledges that: (i) Declarant and/or any of Declarant's affiliates have a right to operate a sales office during the Development and Sale Period; (ii) Declarant, its successors, assigns, employees, contractors, sub contractors and potential purchasers shall have access to the Property at all times and the Village Association and the Owners shall not impede any such access and any gate system installed shall remain open during construction and sales hours to allow Declarant, its successors, assigns, employees, contractors, sub contractors and potential purchasers access to the Property; (iii) Declarant and its nominees shall have the right to enter into and transact on the Property any business necessary to consummate the sale, lease or encumbrance of Lots or real property within Mussorie Village at Fiddler's Creek®, including, but not limited to, the right to maintain models and a sales and/or leasing office, a construction office and/or a service office, place signs, employ sales, leasing, construction and service personnel, use the Property and show homes, and Declarant further reserves the right to make repairs to the Property and to carry on construction activity for the benefit of the Property, and Declarant, and its nominees, may exercise the foregoing rights without notifying the Village Association. Any such models, sales and/or leasing office, construction office, service office, signs and any other items pertaining to such sales, leasing, construction or service efforts shall not be considered a part of the Property and shall remain the property of Declarant; (iv) Declarant shall have the right to enter upon the Property (including, without limitation, all drainage easements) to final-out and/or close-out any and all approvals, permits, orders, conditions and/or requirements that have been issued or imposed by any governmental entity in connection with the development and construction of Mussorie Village at Fiddler's Creek® and all improvements therein for Declarant to comply and adhere to the same, and such rights shall survive the date of Turnover and continue for such period of time as is necessary for Declarant to fully comply with all such governmentally issued approvals, permits, orders, conditions and/or requirements. Without limiting the generality of the foregoing, in exercising any such rights, Declarant shall have the right to remove and/or relocate any and all items (including, without limitation, landscape materials, fences and/or other improvements) that may be required to be removed and/or relocated to final-out and/or close-out any and all such approvals, permits, orders, conditions and/or requirements; and (v) Owners shall not interfere in any manner whatsoever in the sales process by Declarant and/or any of its affiliates, including the carrying of signs or other types of demonstrations in Mussorie Village at Fiddler's Creek® or any public right-of-way adjacent to the Property. Each Owner acknowledges that any such activities interfere with the quiet enjoyment of Mussorie Village at Fiddler's Creek® by the other Owners, are detrimental to the value of the homes within Mussorie Village at Fiddler's Creek®, and interfere with Declarant's ability to conduct its business. This Section 12.1 may not be suspended, superseded or modified in any manner by any amendment to these Village Covenants unless such amendment is consented to in writing by Declarant. 51 1 7460589:9 16A4 For the term of these Village Covenants, the Village Common Area is not for the use and enjoyment of the public, but is expressly reserved for the private use and enjoyment of Declarant, the Village Association, and the Owners, and their family members, guests, invitees and lessees, but only in accordance with these Village Covenants. (a) The administration, management, operation and maintenance of the Village Common Areas shall be the responsibility of the Village Association, as provided herein and in the Mussorie Village at Fiddler's Creek® Documents. (b) Declarant hereby reserves the right to construct and/or operate a "model row(s)" in Mussorie Village at Fiddler's Creek®. The "model row(s)" may contain models for Mussorie Village at Fiddler's Creek® or other communities, as Declarant and/or any of Declarant's affiliates may so determine, in their sole discretion. The "model row(s)" may also contain parking, landscaping and fencing across streets, drives, and/or roadways as Declarant may determine in its sole discretion. In the event that Declarant and/or any of Declarant's affiliates constructs a "model row(s)" in Mussorie Village at Fiddler's Creek®, such "model row(s)" may be used for such period of time that Declarant and/or any of Declarant's affiliates determines to be necessary in its sole judgment. By Owner's acceptance of a deed for a Lot in Mussorie Village at Fiddler's Creek®, such Owner agrees and acknowledges that: (i) Declarant and/or any of Declarant's affiliates have a right to construct and/or operate a "model row(s)"; (ii) Declarant and/or any of its affiliates have an easement over Mussorie Village at Fiddler's Creek® for ingress and egress to and from the "model row(s)" and to use and show the models to prospective purchasers in Mussorie Village at Fiddler's Creek® or other communities being developed by Declarant and/or any of Declarant's affiliates, as long as such "model row(s)" exists; and (iii) Owners shall not interfere in any manner whatsoever in the sales process by Declarant and/or any of its affiliates, including the carrying of signs or other types of demonstrations in Mussorie Village at Fiddler's Creek® or any public right-of-way adjacent to the Property. Each Owner acknowledges that any such activities interfere with the quiet enjoyment of Mussorie Village at Fiddler's Creek® by the other Owners, are detrimental to the value of the homes within Mussorie Village at Fiddler's Creek®, and interfere with Declarant's ability to conduct its business. 12.2. Right to Develop. Declarant and its Affiliates, and their respective employees, agents, and designees, shall have a right of access and use and an easement over, upon, and under all of the Village Common Area for the purpose of making, constructing, and installing such improvements to the Village Common Area and the Property as Declarant deems appropriate in Declarant's discretion. Each Owner acknowledges that the Village is a planned community, the development of which is likely to extend over a number of years, and agrees and consents to all changes in (a) uses or density of Lots or Homes within the Village, or(b) the Development Plan. Each Owner acknowledges and agrees that the present plans and themes for the Village's development may change and that such Owner has not relied on any representation, warranty, or assurance by any Person (a) that any Lots or other property or facilities will be added, modified, or eliminated within the Village; or (b) as to the financial or other impact of such action on any 52 1 7460589:9 16A4 4 Owner. Each Owner acknowledges and agrees that it is not entitled to rely upon and has not received or relied upon any representations, warranties, or guarantees whatsoever as to: (a) the design, construction, completion, development, use, benefits, or value of property within the Village; (b) the number, types, sizes, prices, or designs of any residential or non-residential structures or improvements built or to be built in any part of the Village; or (c) as to the use or development (current or future)of any property adjacent to or within the vicinity of the Village. 12.3. Right to Approve Changes in the Village Standards. No amendment to or modification of any Use Restrictions, rules, or the Architectural Guidelines during the Development and Sale Period shall be effective without prior notice to and the written approval of Declarant. 12.4. Right to Transfer or Assign Declarant Rights. Any or all of Declarant's rights and obligations set forth in these Village Covenants or the Bylaws may, except to the extent restricted by Florida law, be transferred, in whole or in part, from time to time, to other Persons. No such transfer or assignment shall be effective unless it is in a recorded instrument signed by Declarant. Declarant may allow other Persons to exercise, on a one-time or limited basis, any Declarant right without transferring the entire right. In such case, a recorded instrument is not required. 12.5. Easement to Inspect and Right to Correct. Declarant reserves for itself and others it may designate, from time to time, the right to inspect, monitor, test, redesign, modify and correct any structure, improvement, or condition which may exist on any portion of the Village, including Lots, and a nonexclusive easement of access throughout the Village to the extent reasonably necessary to exercise such right. Except in an emergency, entry onto a Lot shall be only after reasonable notice to the Owner in accordance with Section 13.4 below and no entry into a Home or other structure on a Lot shall be permitted without the Owner's consent, which consent shall not unreasonably be withheld, conditioned, or delayed, unless in the case of emergency as provided in Section 13.4 below. The failure or refusal to permit reasonable access to the Lot for the purposes contemplated under this paragraph shall excuse Declarant or its designee from responsibility for repairs or damages relating to defective workmanship or materials. The Person exercising this easement shall promptly repair, and pay for, any resulting damage. The provisions of this paragraph do not impose any obligation on Declarant or any other Person to perform any such inspection, monitoring, testing, redesigning, modification, or correction. In addition, Declarant hereby has, shall have and hereby reserves the right to enter upon the Lots, Village Common Areas and other portions of the Mussorie Village at Fiddler's Creek® (including, without limitation, all drainage, landscape buffer, sign and utility easements, whether located on a Lot or Village Common Areas) in order for Declarant to final-out and/or close-out any and all approvals, permits, orders, conditions and/or requirements that have been issued or imposed by any governmental entity in connection with the development and construction of Mussorie Village at Fiddler's Creek® and all Improvements therein, and for Declarant to comply 53 17460589:9 16A4 and adhere to the same, and such rights shall survive the date of Turnover and continue for such period of time as is necessary for Declarant to fully comply with all such governmentally issued approvals, permits, orders, conditions and/or requirements. Without limiting the generality of the foregoing, in exercising any such rights, Declarant shall have the right to remove and/or relocate any and all items (including, without limitation, landscape materials, fences and/or other Improvements) that may be required to be removed and/or relocated to final-out and/or close-out any and all such approvals, permits, orders, conditions and/or requirements without compensation to the Village Association or the Owners. This Section 12.5 may not be suspended, superseded or modified in any manner by any amendment to these Village Covenants unless such amendment is consented to in writing by Declarant. 12.6. Right to Notice of Design or Construction Claims. No Person shall retain an expert for the purpose of inspecting the design or construction of any structures or improvements within the Village in connection with or in anticipation of any potential or pending claim, demand, or litigation involving such design or construction unless Declarant has been first notified in writing and given an opportunity to meet with the property Owner and conduct an inspection. 12.7. Termination of Rights. Rights granted under this Article shall terminate upon the earlier of (a) the period specified in the particular Section, if any; (b) 25 years from the date these Village Covenants are recorded; or (c) Declarant's recording of a statement that all sales and marketing activity has ceased. Thereafter, Declarant may continue to use the Village Common Areas for the purposes stated in this Article only pursuant to a rental or lease agreement between Declarant and the Village Association which provides for rental payments based on the fair market rental value of any such portion of the Village Common Areas. Notwithstanding the above, Declarant reserves for itself and its Affiliates a perpetual, nonexclusive easement of access to and use of the Village Common Areas in connection with the marketing and sale of other properties in order to show the Village as an example of Declarant's projects. This Article shall not be amended without Declarant's prior written consent. ARTICLE XIII EASEMENTS 13.1. Easements in Village Common Area. Declarant grants to the Village Association an easement of use and access to the Village Common Area for the Village Association to maintain and repair the Village Common Area. 13.2. Easements of Encroachment. Declarant grants easements of encroachment, and for maintenance and use of any permitted encroachment, between each Lot and any adjacent Village Common Area and between adjacent Lots. Such easement shall permit encroachment only by a structure or fixture (i) which 54 17460589:9 16A4 has been built by a Builder or approved in accordance with Article IV of these Village Covenants, and (ii) which is unintentionally constructed on another's property. An encroachment easement shall not exist if the encroachment results from willful and knowing conduct on the part of, or with the knowledge and consent of, the Person claiming the benefit of such easement. 13.3. Easements for Utilities, Etc. (a) Installation and Maintenance. Declarant reserves for itself, its successors and assigns, so long as Declarant or any Declarant Affiliate owns any property in the Village and/or Declarant is conducting its activities during the Development and Sale Period, and grants to the Village Association, subject to Declarant's rights under Sections 12.1, 12.2 and 12.5, perpetual, non-exclusive easements throughout the Village (but not through a structure) to: (i) install utilities and infrastructure to serve the Village, including, without limitation, water, sewer, telephone, electric, gas, irrigation, cable and other systems for sending and receiving data and/or other electronic signals, drainage structures, facilities and systems, and security and similar systems; (ii) install walkways, pathways and trails, curb cuts, driveways and paved areas, street lights, and signage on property which Declarant or the Village Association owns or within public rights-of-way or easements reserved for such purpose on a Plat; (iii) inspect, maintain, repair, and replace the utilities, infrastructure, and other improvements described above; (iv) access and read utility meters; and (v) for any other purpose in Declarant's sole discretion. (b) Specific Easements. Declarant also reserves for itself the non-exclusive right and power to record such specific easements as may be necessary, in Declarant's discretion, to develop the Village. The location of the easement shall be subject to the written approval of the burdened property Owner, which approval shall not unreasonably be withheld, delayed or conditioned. (c) Interference. All work associated with the exercise of the easements described in subsections (a) and (b) of this Section shall be performed in such a manner as to minimize, to the extent practicable, interference with the use and enjoyment of the property burdened by the easement. Upon completion of the work, the Person exercising the easement shall restore the property, to the extent reasonably practical, to the condition existing prior to the work. The exercise of these easements shall not extend to permitting entry into the structures on any Lot nor shall it unreasonably interfere with the use of any Lot and, except in an emergency, entry onto any Lot shall be made only after reasonable notice to the Owner or occupant pursuant to Section 13.4 below. 13.4. Easements for Maintenance, Emergency, and Enforcement. Declarant grants to the Village Association easements over the Village as necessary for the Village Association to fulfill its maintenance responsibilities under these Village Covenants and any Supplemental Declaration. The Village Association shall also have an easement and the right, but not the obligation, to enter upon any Lot for emergency, security, and safety reasons, to perform maintenance and to inspect for the purpose of ensuring compliance with and enforcing the Village Documents. Such easement and right may be exercised by the Village Association through its officers, directors, committee members, employees, contractors, or agents in their 55 17460589:9 16A4 capacities as such and by all emergency personnel in the performance of their duties. Except in an emergency situation, entry shall only be during reasonable hours and after notice to the Owner. The exercise of the Village Association's rights of access to the Home shall be accomplished by providing the Owner with fourteen (14) days notice of the Village Association's exercise of its right of entry, with due respect for the rights of occupants to privacy and freedom from unreasonable annoyance, as well as with appropriate precautions to protect the personal property within the Home. The Village Association must then provide the Owner with a second notice seven (7) days prior to such entry by the Village Association. In the event of an emergency, whenever possible and prudent to the circumstances, 24 hour notification shall be delivered to the Owner prior to the Village Association entering the Home. Declarant grants to the Village Association, subject to any required notice, an easement and right to enter a Lot to abate a Village Document violation and/or to remove any structure, thing, or condition that violates the Village Documents. Any costs incurred, including Legal Costs, shall be assessed against the Owner as a Benefited Assessment. 13.5. Easements for Cross-Drainage. All portions of the Village shall be burdened with easements for drainage of storm water runoff from other portions of the Village; however, no Person other than Declarant, the CDD and/or SFWMD shall alter the drainage on any Lot to increase materially the drainage of storm water onto adjacent portions of the Village without the consent of the Owner(s) of the affected property, the Board, the SFWMD, the County, if applicable, and Declarant during the Development and Sale Period. 13.6. Rights to Storm Water Runoff, Effluent, and Water Reclamation. Declarant reserves for the CDD and its designees all rights to ground water, surface water, storm water runoff, and effluent located or produced within the Village, and each Owner agrees, by acceptance of a deed to a Lot, that the CDD shall retain all such rights. Such rights shall include the reservation of an easement over the Village for access, and for installation and maintenance of facilities and equipment to capture and transport such water, runoff, and effluent. This Section may not be amended without Declarant's and the CDD's consent, and the rights created in this Section shall survive termination of these Village Covenants. 13.7. Easement for Maintenance of Surface Water and Storm Water Management System. The CDD, the SFWMD and the County shall have a perpetual, non-exclusive easement over all portions of the Surface Water and Storm Water Management System for access to operate, maintain, repair, or replace the system. By this easement, the CDD, the SFWMD and the County shall have the right to enter upon any portion of any Lot and the Village Common Area which is a part of or adjacent to the Surface Water and Storm Water Management System, at a reasonable time and in a reasonable manner, to operate, maintain, repair, or replace the system as the CDD, the SFWMD, the County or any governmental agency or quasi-governmental body requires or permits. Additionally, the CDD, the SFWMD and the County shall have a perpetual, 56 17460589:9 f6A 4 non-exclusive easement for drainage over the entire Surface Water and Storm Water Management System. No Person other than the CDD, the SFWMD and the County shall alter the drainage flow of or over the Surface Water and Storm Water Management System, including, without limitation, buffer areas or swales, without the CDD's, the SFWMD's and the County's prior written approval, and, during the Development and Sale Period, Declarant's written consent. 13.8. Sign Easement. Declarant reserves for itself and the Village Association an easement (herein referred to as the "Sign Easement") over, upon, and across all areas for erection, installation, operation, maintenance, repair, and replacement of Village signs, walls, monuments, fencing, decorative improvements, and other entry features, together with landscaping, lighting, utility, and irrigation facilities. No Owner shall obstruct access to the Sign Easement, or install or remove any plant or other improvement or installation placed in the Sign Easement by the beneficiaries thereof, or obstruct the view of the Sign Easement from the adjacent street right-of-way. All Village signs, walls, monuments, entry features, landscaping, utility, irrigation and other permanent improvements installed in the Sign Easement by Declarant, which are subject to the review and approval by the Foundation, shall become the Village Common Area of the Village Association upon conveyance from Declarant, and the Village Association shall maintain such Sign Easement and the improvements therein as part of the Village Common Area. In addition, Declarant shall have the right, without the prior approval of the Village Association or any Owner, to erect marketing signs within the Sign Easement, and to change, move, remove, repaint, maintain, and otherwise exercise complete and unfettered control over such marketing signs, if such changes have been reviewed and approved by the Foundation, at all times prior to the sale of the last Lot owned by Declarant in the Village, and all such marketing signs shall be and remain the exclusive property of Declarant and shall not be deemed part of the Village Common Area owned by the Village Association. 13.9. Easement for Irrigation Equipment. If there is a master irrigation system for the Village, Declarant and the Village Association shall have a perpetual, non-exclusive easement over, under and through all exterior portions of each Lot, except any area upon which buildings have been erected by Declarant or otherwise in accordance with Article IV, for the purpose of installing, maintaining, repairing, replacing and operating all irrigation equipment, systems and lines serving all or any portion of the Lots and/or Village Common Area. The foregoing easement shall not impose any obligation on the Village Association and/or Declarant to install any such improvements. 13.10. Easement to Foundation. Declarant reserves for the Foundation an easement over, upon, and across the Property to perform all obligations required of the Foundation under the Foundation Declaration and for the locations of any improvements required to be made by the Foundation under the Foundation Declaration. 57 1 7460589:9 16A4 13.1 1. Easement to CDD. Declarant reserves for the CDD an easement over, upon, and across the Property to perform all obligations required of the CDD and for the locations of any improvements required to be made by the CDD. ARTICLE XIV DISPUTE RESOLUTION 14.1. In General. This Article XIV contains procedures concerning disputes between an Owner and the Village Association, as well as between (i) an Owner and/or Declarant and (ii) the Village Association and Declarant, related to the Village or each other. Regarding disputes between an Owner and Declarant, the procedures in this Article XIV do not replace Declarant's customer or warranty service procedures, and Owners are encouraged to resolve disputes through those procedures prior to initiating any procedures hereunder. 14.2. Disputes Between Village Association and Owners. All disputes, controversies, claims and demands between the Village Association and any Owner pertaining to the subject areas described in Section 14.4 shall be governed by the procedures set forth in Section 14.4. 14.3. Disputes Between Village Association/Owner and Declarant. Any and all claims, disputes and/or other controversy between the Village Association or any Owner and Declarant (or any affiliated general contractor or affiliated contractor, or any officer, director, member, shareholder, partner, employee or agent thereof, individually and collectively referred to as "Declarant" for purposes of this Article) or any non-affiliated general contractor, non-affiliated contractor, subcontractor, material supplier, individual product manufacturer, design professional or any other person or entity that provided materials, labor or other services to the Property or a Home on behalf of Declarant, relating to these Village Covenants, the use, condition, design, specifications, surveying, grading, construction, installation, budgeting and/or performance of any Improvements in the Village Common Area or the Home, whether based in contract, tort or statute violation, shall be subject to the provisions set forth in Section 14.4 of this Article XIV of these Village Covenants, and/or, with respect to any such disputes between an Owner and Declarant, the provisions of the purchase agreement between such Owner and Declarant and/or the provisions of any warranty provided by Declarant to such Owner. 14.4. Dispute Resolution. ANY AND ALL CLAIMS, CONTROVERSIES, BREACHES OR DISPUTES BY OR BETWEEN ANY OWNER AND THE VILLAGE ASSOCIATION AND/OR DECLARANT (COLLECTIVELY REFERRED TO AS THE "BOUND PARTIES" AND INDIVIDUALLY AS A "BOUND PARTY"), ARISING OUT OF OR RELATED TO THE PROPERTY, THE SUBDIVISION OR VILLAGE OF WHICH THE PROPERTY IS A PART, THE SALE OF 55 I 7460589:9 16A4 THE PROPERTY BY DECLARANT, OR ANY TRANSACTION RELATED THERETO, WHETHER SUCH DISPUTE IS BASED ON CONTRACT, TORT, STATUTE, OR EQUITY, INCLUDING WITHOUT LIMITATION, ANY DISPUTE OVER (a) BREACH OF CONTRACT, (b) NEGLIGENT OR INTENTIONAL MISREPRESENTATION OR FRAUD, (c) NONDISCLOSURE, (d) BREACH OF ANY ALLEGED DUTY OF GOOD FAITH AND FAIR DEALING, (e) ALLEGATIONS OF LATENT OR PATENT DESIGN OR CONSTRUCTION DEFECTS, INCLUDING WITHOUT LIMITATION, PURSUANT TO THE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES, (f) THE PROPERTY, INCLUDING WITHOUT LIMITATION, THE PLANNING, SURVEYING, DESIGN, ENGINEERING, GRADING, SPECIFICATIONS, CONSTRUCTION OR OTHER DEVELOPMENT OF THE PROPERTY, THE PARCEL/TRACT OR THE COMMUNITY OF WHICH THE PROPERTY IS A PART, (g) DECEPTIVE TRADE PRACTICES OR (h) ANY OTHER MATTER ARISING OUT OF OR RELATED TO THE INTERPRETATION OF ANY TERM OR PROVISION OF THIS VILLAGE COVENANTS, OR ANY DEFENSE GOING TO THE FORMATION OR VALIDITY OF THIS VILLAGE COVENANTS, OR ANY PROVISION OF THIS VILLAGE COVENANTS OR ANY EXHIBITS HERETO (EACH A "DISPUTE"), SHALL BE ARBITRATED PURSUANT TO THE FEDERAL ARBITRATION ACT AND SUBJECT TO THE PROCEDURES SET FORTH AS FOLLOWS: (a) THIS AGREEMENT TO ARBITRATION SHALL BE DEEMED TO BE A SELF-EXECUTING ARBITRATION AGREEMENT. ANY DISPUTE CONCERNING THE INTERPRETATION OR THE ENFORCEABILITY OF THIS ARBITRATION AGREEMENT, INCLUDING WITHOUT LIMITATION, ITS REVOCABILITY OR VOIDABILITY FOR ANY CAUSE, ANY CHALLENGES TO THE ENFORCEMENT OF THIS ARBITRATION AGREEMENT, OR THE SCOPE OF ARBITRABLE ISSUES UNDER THIS ARBITRATION AGREEMENT, AND ANY DEFENSE RELATING TO THE ENFORCEMENT OF THIS ARBITRATION AGREEMENT, INCLUDING WITHOUT LIMITATION, WAIVER, ESTOPPEL, OR LACHES, SHALL BE DECIDED BY AN ARBITRATOR IN ACCORDANCE WITH THIS ARBITRATION AGREEMENT AND NOT BY A COURT OF LAW. (b) IN THE EVENT THAT A DISPUTE ARISES BETWEEN THE BOUND PARTIES, SUCH DISPUTE SHALL BE RESOLVED BY AND PURSUANT TO THE ARBITRATION RULES AND PROCEDURES OF JUDICIAL ARBITRATION AND MEDIATION SERVICES ("JAMS") IN EFFECT AT THE TIME THE REQUEST FOR ARBITRATION IS SUBMITTED. IN THE EVENT JAMS IS FOR ANY REASON UNWILLING OR UNABLE TO SERVE AS THE ARBITRATION SERVICE, THE BOUND PARTIES SHALL SELECT ANOTHER REPUTABLE ARBITRATION SERVICE. IF THE BOUND PARTIES ARE UNABLE TO AGREE ON AN ALTERNATIVE SERVICE, THEN EITHER BOUND PARTY MAY PETITION ANY COURT OF COMPETENT JURISDICTION IN THE COUNTY IN WHICH THE PROPERTY IS LOCATED TO APPOINT SUCH AN ALTERNATIVE SERVICE, WHICH SHALL BE BINDING ON THE BOUND PARTIES. THE RULES AND PROCEDURES OF SUCH ALTERNATIVE SERVICE IN EFFECT AT THE TIME THE REQUEST FOR ARBITRATION IS SUBMITTED SHALL BE FOLLOWED. 59 17460589:9 16A4 (c) The Bound Parties expressly agree and acknowledge that these Village Covenants involves and concerns interstate commerce and is governed by the provisions of the Federal Arbitration Act (9 U.S.C. §I et seq.) now in effect and as the same may from time to time be amended, to the exclusion of any different or inconsistent state or local law, ordinance, regulation, or judicial rule. Accordingly, any and all Disputes shall be arbitrated — which arbitration shall be mandatory and binding —pursuant to the Federal Arbitration Act. (d) This arbitration agreement shall inure to the benefit of, and be enforceable by, each Owner, Declarant and Declarant's Affiliates and related entities, the Village Association, and each of their respective employees, officers, directors, agents, representatives, contractors, subcontractors, agents, vendors, suppliers, design professionals, insurers and any other person whom any Owner or the Village Association contends is responsible for any alleged defect in or to the Property or any improvement or appurtenance thereto. The Bound Parties contemplate the inclusion of such Bound Parties in any arbitration of a Dispute and agree that the inclusion of such Bound Parties will not affect the enforceability of this arbitration agreement. (e) In the event any Dispute arises under the terms of these Village Covenants or in the event of the bringing of any arbitration action by a Bound Party hereto against another Bound Party hereunder by reason of any breach of any of the covenants, agreements or provisions on the Bound Party of the other Bound Party arising out of these Village Covenants, then in that event the prevailing party shall be awarded from the other party all costs and expenses in any way related to the Dispute, including actual attorney and paralegal's fees, accounting and engineering fees, and any other professional fees resulting there from as awarded by court or arbitrator. (f) The arbitrator shall be authorized to provide all recognized remedies available in law or in equity for any cause of action that is the basis of the arbitration. (g) The decision of the arbitrator shall be final and binding. The Bound Parties expressly agree that an application to confirm, vacate, modify, or correct an award rendered by the arbitrator shall be filed in any court of competent jurisdiction in the County in which the Property is located. (h) To the extent that any state or local law, ordinance, regulation, or judicial rule is inconsistent with any provision of the rules of the arbitration service under which the arbitration proceeding shall be conducted, the latter rules shall govern the conduct of the proceeding. (i) The participation by any party, or any party whom the Village Association or any Owner contends is responsible for a Dispute, in any judicial proceeding concerning this arbitration agreement or any matter arbitrable hereunder shall not be asserted or accepted as a reason to delay, to refuse to participate in arbitration, or to refuse to compel arbitration, including instances in which the judicial proceeding involves parties not subject to this arbitration agreement and/or who cannot otherwise be compelled to arbitrate. (j) Fees and costs of the arbitration and/or the arbitrator shall be borne equally by the Bound Parties to the arbitration; provided, however, that the fees and costs of the 60 17460589:9 16A 4 arbitration and/or the arbitrator ultimately shall be allocated and borne as determined by the arbitrator. Notwithstanding the foregoing, the Bound Parties shall each be solely responsible for their own attorney fees and expert witness costs. (k) The arbitrator appointed to serve shall be a neutral and impartial individual. (1) The venue of the arbitration shall be in Collier County, Florida, unless the parties agree in writing to another location. (m) If any provision of this arbitration agreement shall be determined to be unenforceable or to have been waived, the remaining provisions shall be deemed to be severable therefrom and enforceable according to their terms. (n) The parties to the arbitration shall have the right to conduct a reasonable amount of discovery, including written discovery, depositions and inspections and testing, all as approved and coordinated by the arbitrator. (o) Any and all Disputes between Declarant and the Village Association arising from or related to the Village, these Village Covenants or any other agreements between Declarant and the Village Association shall be resolved in accordance with these Village Covenants. (p) Pre-Arbitration Dispute Resolution Provision: For all Disputes, the Bound Parties agree to follow the pre-arbitration procedures set forth below. The Dispute resolution provisions of these Village Covenants are intended to grant certain rights to Declarant and/or the Village Association which are in addition to those rights provided in Chapter 558, Florida Statutes ("Chapter 558 Notice of Claim"), as it exists at the time these Village Covenants are recorded. If a court of law should determine that any of the terms of these Village Covenants conflict with any of the terms of Chapter 558 Notice of Claim, the terms of Chapter 558 Notice of Claim shall supersede and control to the extent of such conflict. i. Notification. The Village Association and all Owners agree to provide Declarant, with written notice of any matters relating to a Dispute as soon as is reasonably possible after the Village Association or any Owner becomes aware, or should have become aware, of such matters and Dispute. Additionally, in accordance with the requirements of Chapter 558 Notice of Claim, the Village Association and all Owners must comply with and is hereby advised of the following: ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES. ii. Cooperation; Access; Repair. The Village Association and each Owner agree to provide Declarant and its representatives, contractors, and others as Declarant may request, with prompt, reasonable cooperation, which may, for example, include access to all portions of the Property, in order to facilitate Declarant's 61 17460589:9 16A 4, investigation regarding a Dispute including, without limitation, for purposes of inspecting, testing, repairing, replacing, correcting, or otherwise addressing matters related to the Dispute. If the Dispute arises out of or relates to the planning, surveying, design, engineering, grading, specifications, construction, or other development of the Property, Declarant is hereby granted the irrevocable right, but is under no obligation, to inspect, repair and/or replace any and all affected parts of the Property. NOTICE: THE BOUND PARTIES AGREE TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THIS ARBITRATION AGREEMENT (ARTICLE XIV OF THIS VILLAGE COVENANTS) ENTITLED, "DISPUTE RESOLUTION - ARBITRATION" DECIDED BY NEUTRAL ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT, AND THE BOUND PARTIES ARE GIVING UP ANY RIGHTS THE BOUND PARTIES MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. THE BOUND PARTIES ARE GIVING UP THEIR RESPECTIVE JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THIS ARBITRATION AGREEMENT. IF ANY OWNER OR DECLARANT AND/OR THE VILLAGE ASSOCIATION REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, THE OWNER OR DECLARANT AND/OR THE VILLAGE ASSOCIATION MAY BE COMPELLED TO ARBITRATE UNDER THE FEDERAL ARBITRATION ACT. THE BOUND PARTIES' AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. THIS VILLAGE COVENANTS PROVIDE THAT ALL DISPUTES BETWEEN THE BOUND PARTIES WILL BE RESOLVED BY ARBITRATION IN ACCORDANCE WITH THE PROVISIONS SET FORTH ABOVE. THIS MEANS THAT THE BOUND PARTIES EACH GIVE UP THE RIGHT TO GO TO COURT OR TO A JURY TO ASSERT OR DEFEND RIGHTS UNDER THIS VILLAGE COVENANTS. THE BOUND PARTIES RIGHTS WILL BE DETERMINED BY A NEUTRAL ARBITRATOR AND NOT BY A JUDGE OR JURY. THE BOUND PARTIES ARE ENTITLED TO A FAIR HEARING, BUT THE ARBITRATION PROCEDURES ARE SIMPLER AND MORE LIMITED THAN THE RULES FOLLOWED IN A COURT. ARBITRATOR DECISIONS ARE AS ENFORCEABLE AS ANY COURT ORDER AND ARE SUBJECT TO VERY LIMITED REVIEW BY A COURT. THE BOUND PARTIES UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT ALL DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THIS ARTICLE ENTITLED "DISPUTE RESOLUTION - ARBITRATION" TO NEUTRAL, BINDING ARBITRATION. ARTICLE XV MORTGAGEE PROVISIONS The following provisions are for the benefit of holders, insurers, and guarantors of first Mortgages on Lots. The provisions of this Article apply to both these Village Covenants and to the Bylaws, notwithstanding any other provisions contained therein. 62 17460589:9 16A4 15.1. Notices of Action. An institutional holder, insurer, or guarantor of a first Mortgage which provides a written request to the Village Association (such request to state the name and address of such holder, insurer, or guarantor and the street address of the Lot to which its Mortgage relates, thereby becoming an "Eligible Holder"), will be entitled to timely written notice of: (a) Any condemnation loss or any casualty loss which affects a material portion of the Village or which affects any Lot on which there is a first Mortgage held, insured, or guaranteed by such Eligible Holder; (b) Any delinquency in the payment of assessments or charges owed by a Lot subject to the Mortgage of such Eligible Holder, where such delinquency has continued for a period of sixty (60) days, or any other violation of the Village Documents relating to such Owner or occupant which is not cured within sixty (60) days; (c) Any lapse, cancellation, or material modification of any Village Association insurance policy; (d) Any proposed action which would require the consent of a specified percentage of Eligible Holders; or (e) If the U.S. Department of Housing and Urban Development is insuring or the U.S. Department of Veterans Affairs is guaranteeing the Mortgage on any Lot, material amendment to the Village Documents or extraordinary action of the Village Association, as defined under VA Pamphlet 26-7, as it may be amended or superseded. Otherwise, no consent from Eligible Holders shall be necessary to enable the Village Association to accomplish any of its operational duties and responsibilities or to exercise any of its rights. 15.2. Special FHLMC Provision. If any portion of the Village is a condominium, then to the extent required by the Federal Home Loan Mortgage Corporation, the following provisions apply in addition to and not in lieu of the foregoing. Unless at least 67% of the first Mortgagees or Class Members representing at least 67% of the total Village Association vote consent, the Village Association shall not: (a) By act or omission seek to abandon, partition, subdivide, encumber, sell, or transfer all or any portion of the real property comprising the Village Common Area which the Village Association owns, directly or indirectly (the granting of easements for utilities or other similar purposes consistent with the intended use of the Village Common Area shall not be deemed a transfer within the meaning of this subsection); (b) Change the method of determining the obligations, assessments, dues, or other charges which may be levied against an Owner; 63 17460589:9 16A4 (c) By act or omission change, waive, or abandon any scheme of regulations or enforcement pertaining to architectural design, exterior appearance or maintenance of the Village Common Area (the issuance and amendment of architectural standards, procedures, rules and regulations, or use restrictions shall not constitute a change, waiver, or abandonment within the meaning of this provision); (d) Fail to maintain insurance, as required by these Village Covenants; or (e) Use hazard insurance proceeds for any Village Common Area losses for other than the repair, replacement, or reconstruction of such property. First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the Village Common Area and may pay overdue premiums on casualty insurance policies or secure new casualty insurance coverage upon the lapse of an Village Association policy, and first Mortgagees making such payments shall be entitled to immediate reimbursement from the Village Association. 15.3. Other Provisions for First Lien Holders. To the extent not inconsistent with Florida law: (a) Any restoration or repair of the Village after a partial condemnation or damage due to an insurable hazard shall be performed substantially in accordance with these Village Covenants and the original plans and specifications unless the approval is obtained of the Eligible Holders of first Mortgages on Lots or to which more than 50% of the votes of Lots or subject to Mortgages held by such Eligible Holders are allocated. (b) Any election to terminate the Village Association after substantial destruction or a substantial taking in condemnation shall require the approval of the Eligible Holders of first Mortgages on Lots to which more than 50% of the votes of Lots subject to Mortgages held by such Eligible Holders are allocated. 15.4. Amendments to Documents. (a) The consent of at least 67% of the total voting interests, and the consent of Declarant, during the Development and Sale Period, and the approval of the Eligible Holders of first Mortgages on Lots to which at least 67% of the votes of Lots subject to a Mortgage appertain, shall be required to terminate the Village Association. (b) If and to the extent FHA or VA is insuring or guaranteeing any Mortgage on a Lot, the consent of at least 67% of the voting interests, and the consent of Declarant, during the Development and Sale Period, and the approval of Eligible Holders of first Mortgages on Lots to which more than 50% of the votes of Lots subject to a Mortgage appertain, shall be required materially to amend any provisions of these Village Covenants, Bylaws, or Articles of 64 17460589:9 16A4 Incorporation, or to add any material provisions thereto which establish, provide for, govern, or regulate any of the following: (i) voting; (ii) assessments, assessment liens, or subordination of such liens; (iii) reserves for maintenance, repair, and replacement of the Village Common Area; (iv) insurance or fidelity bonds; (v) rights to use the Village Common Area; (vi) responsibility for maintenance and repair of the Village; (vii) expansion or contraction of Village or the addition, annexation, or withdrawal of property to or from the jurisdiction of the Village Association; (viii) boundaries of a Lot; (ix) leasing of Lots; (x) imposition of any right of first refusal or similar restriction of the right of any Owner to sell, transfer, or otherwise convey his or her Lot; (xi) establishment of self-management by the Village Association where professional management has been required by an Eligible Holder; or (xii) any provisions included in the Village Documents which are for the express benefit of holders, guarantors, or insurers of first Mortgages on Lots. 15.5. Construction of Article XV. Nothing contained in this Article shall be construed to reduce the percentage vote that must otherwise be obtained under these Village Covenants, the Bylaws, or Florida law for any of the acts set out in this Article. 15.6. No Priority. No provision of these Village Covenants or the Bylaws gives or shall be construed as giving any Owner or other party priority over any rights of the first Mortgagee of any Lot in the 65 1 7460589:9 16A4 case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Village Common Area. 15.7. Notice to Village Association. Upon request, each Owner shall be obligated to furnish to the Village Association the name and address of the holder of any Mortgage encumbering the Owner's Lot. 15.8. Failure of Mortgagee to Respond. Any Mortgagee who receives a written request from the Board to respond to or consent to any action shall be conclusively deemed to have irrevocably approved such action if the Village Association does not receive a written response from the Mortgagee within sixty (60) days of the date of the Village Association's request, provided such request is delivered to the Mortgagee by certified mail, return receipt requested; overnight delivery by a nationally recognized courier that provides tracking and receipt services; or personal delivery. 15.9. HUD/VA Approval. As long as there is a Class "B" membership, the following actions shall require the prior approval of the U.S. Department of Housing and Urban Development ("HUD") or the U.S. Department of Veterans Affairs ("VA"), if either such agency is insuring or guaranteeing the Mortgage on any Lot or has granted project approval for such Mortgages: merger, consolidation, or dissolution of the Village Association; annexation of additional property; dedication, conveyance (other than to correct errors on property descriptions or other inconsequential or immaterial conveyances), or mortgaging of Village Common Area; or material amendment of these Village Covenants or the Bylaws. The granting of easements for utilities or other similar purposes consistent with the intended use of the Village Common Area shall not be deemed a conveyance within the meaning of this Section. 15.10. Rights of Declarant and Institutional Mortgagees To Pay Assessments and Receive Reimbursement. Declarant and any institutional lender(s) shall have the right, but not the obligation, jointly or individually, and at their sole option, to pay any of the Assessments which are in default and which may or have become a charge against any Lot(s) or Further, Declarant and any institutional lender shall have the right, but not the obligation, jointly or individually, and, at their sole option, to pay insurance premiums or fidelity bond premiums or other required items of Operating Expenses on behalf of the Village Association in the event the same are overdue and when lapses in policies or services may occur. Declarant and any institutional lender paying overdue Operating Expenses on behalf of the Village Association will be entitled to immediate reimbursement from the Village Association plus Interest and any costs of collection including, but not limited to, Legal Costs, and the Village Association shall execute an instrument in recordable form to this effect and deliver the original of such instrument to each institutional lender who is so entitled to reimbursement and to Declarant if Declarant is entitled to reimbursement. 66 1 7460589:9 16A 4 ARTICLE XVI DISCLOSURES AND WAIVERS 16.1. No Liability For Third Party Acts. Owners and occupants of Lots, and their respective guests and invitees, are responsible for their own personal safety and for their property in the Village. The Village Association may, but is not obligated to, maintain or support certain activities within the Village which are intended to promote or enhance safety or security within the Village. However, the Village Association and Declarant shall not in any way be considered insurers or guarantors of safety or security within the Village, nor shall they be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. No representation or warranty is made that any gate or other mechanism or system for limiting access to Fiddler's Creek®, cannot be compromised or circumvented, nor that any such gate or other mechanism or system for limiting access to Fiddler's Creek® will prevent loss or provide the detection or protection for which the gate or other mechanism or system for limiting access to the Fiddler's Creek® is designed or intended. Each Owner acknowledges, understands, and shall be responsible for informing its tenants and all occupants and invitees of its Lot that the Village Association, the Board and its committees, the Foundation, its board and committees, Foundation Declarant, Declarant and any predecessor Declarant are not insurers or guarantors of security or safety and that each Person within Fiddler's Creek® assumes all risks of personal injury and loss or damage to property, including Lots and the contents of Lots resulting from acts of third parties. 16.2. View Impairment. Neither Declarant nor the Village Association guarantee or represent that any view over and across the Lots or any open space within the Village will be preserved without impairment. Neither Declarant nor the Village Association shall be obligated to relocate, prune, or thin trees or other landscaping. The Village Association (with respect to the Village Common Area) and Declarant have the right to relocate, prune, thin, or add trees and other landscaping from time to time subject to applicable law. Any express or implied easements for view purposes or for the passage of light and air are hereby expressly disclaimed. 16.3. Construction Activities. All Owners, occupants, and users of Lots are hereby placed on notice that Declarant, any Declarant Affiliate, and/or their agents, contractors, subcontractors, licensees, and other designees, successors, or assigns, shall, from time to time, conduct construction activities within the Village. By the acceptance of a deed or other conveyance or mortgage, leasehold, license, or other interest, and/or by using any portion of a Lot or the Village generally, Owners, occupants and users of Lots acknowledge, stipulate, and agree (a) such activities shall not be deemed nuisances, or noxious or offensive activities, under any applicable covenants or at law generally; (b) not to enter upon, or allow their children or other Persons under their control or direction to enter upon (regardless of whether such entry is a trespass or otherwise), any property within or in 67 17460589:9 16A4 proximity to the Lot where such activities are being conducted (even if not being actively conducted at the time of entry, such as at night or otherwise during non-working hours); (c) that Declarant, any Declarant Affiliate, or predecessor Declarant, and all of their agents, contractors, subcontractors, licensees, and other designees, successors, and assigns, shall not be liable for any losses, damages (compensatory, consequential, punitive, or otherwise), injuries, or deaths arising from or relating to any breach of this covenant; (d) that any purchase or use of any Lot has been and will be made with full knowledge of the foregoing; and (e) this acknowledgment and agreement is a material inducement to Declarant or its Affiliates to sell, convey, lease, and/or allow the use of Lots within the Village. 16.4. Liability for Village Association Operations. The Village Association shall, to the fullest extent permitted by law, indemnify, defend, and hold harmless Declarant and any predecessor Declarant (including their respective Affiliates, successors, and assigns) from and against any and all losses, claims, demands, damages, costs, and expenses of whatever kind or nature (including, without limitation, Legal Costs), which relate to or arise out of Village Association management and operations, including, without limitation, improvement, maintenance, and operation of the Village Common Areas and the collection of assessments. ARTICLE XVII CHANGES IN OWNERSHIP OF LOTS Any Owner, other than Declarant or any Declarant Affiliate, desiring to sell or otherwise transfer title to his or her Lot shall give the Board written notice at least fourteen (14) days' prior to recording the deed of the name and address of the purchaser or transferee, the date on which transfer of title is to occur, and such other information as the Board may reasonably require. Notwithstanding the transfer of title, the transferor shall be jointly and severally responsible with the transferee for all future obligations of the Owner, including future assessment obligations, until the date upon which the Board receives such notice, after which the original Owner shall be released from the obligation to pay assessments levied after the date such notice is received. ARTICLE XVIII AMENDMENT OF VILLAGE COVENANTS 18.1. By Declarant. In addition to specific amendment rights granted elsewhere in these Village Covenants, until the first conveyance of a Lot to a Person other than Declarant or a Builder, Declarant may unilaterally amend these Village Covenants for any purpose. Thereafter and until termination of the Class "B" Control Period, Declarant may unilaterally amend these Village Covenants if such amendment is necessary (a) to bring any provision into compliance with any applicable governmental statute, rule, regulation, or judicial determination; (b) to enable any reputable title insurance company to issue title insurance coverage on the Lots; (c) to enable any institutional or governmental lender, purchaser, insurer, 68 17460589:9 16A4 or guarantor of mortgage loans, including, for example, the Federal National Mortgage Village Association, the Federal Home Loan Mortgage Corporation, HUD, or VA, to make, purchase, insure, or guarantee mortgage loans on the Lots; (iv) to satisfy the requirements of any local, state, or federal governmental agency; or (v) for any other purpose which does not materially adversely affect title to any Lot, unless the Owner of such Lot consents to such amendment. The Village Association shall, forthwith upon request of Declarant, join in any such amendments or modifications and execute such instruments to evidence such joinder and consent as Declarant shall, from time to time, request. 18.2. By the Owners. Except as otherwise specifically provided above and elsewhere in these Village Covenants these Village Covenants may be amended only by the affirmative vote or written consent, or any combination thereof, of Owners representing at least 75% of the Village Association's total votes. In addition, during the Development and Sale Period, Declarant's written consent is required for any amendment. The approval requirements set forth in Section 15.9 also shall be met, if applicable. Notwithstanding the above, the percentage of votes necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause. 18.3. Validity and Effective Date. No amendment may remove, revoke, or modify any right or privilege of Declarant or the Class `B" Member without the written consent of Declarant or the Class "B" Member, respectively (or the assignee of such right or privilege). If an Owner consents to any amendment to these Village Covenants or the Bylaws, it will be conclusively presumed that the Owner has the authority to consent, and no contrary provision in any Mortgage or contract between the Owner and a third party will affect the validity of such amendment. Any amendment shall become effective upon the earliest of (a) actual notice; (b) recording; or (c) later effective date specified in the amendment. Any procedural challenge to an amendment must be made within six (6) months of its recordation or such amendment shall be presumed to have been validly adopted. In no event shall a change of conditions or circumstances operate to amend any provisions of these Village Covenants. 18.4. Exhibits. Exhibits "A" and "B" attached to these Village Covenants are incorporated by this reference and amendment of such exhibits shall be governed by this Article. Exhibit "C" is incorporated by reference and may be amended as provided in Article III or pursuant to Sections 18.1 and 18.2. All other exhibits are attached for informational purposes and may be amended as provided therein or in the provisions of these Village Covenants which refer to such exhibits. 69 17460589:9 16A4 IN WITNESS WHEREOF, Declarant has caused this instrument to be executed on the day and year written below. TAYLOR MORRISON OF FLORIDA, INC., a Florida corps ration By: Printed Name: ' , 61 ! "T t it tT = Ps Its: '( . 1, C STATE OF FLORIDA ) ) SS: COUNTY OFSuraScici ) I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, the foregoing instrument was acknowledged before me by Afx-iltcm T. ,a, ie r' , the Vic fk) ., ,1e..,-t of TAYLOR MORRISON OF FLORIDA, INC., a tlorida corporation, freely and voluntarily under authority duly vested in him by said cor oration and_that the seal affixed thereto is the true corporate seal of said corporation, ho is ersonally known to me) or who has produced as identification. WITNESS my hand and official seal in the County and State last aforesaid this day of JL ILI , 201 . &Public DEBORAH K. BECKETT Typed, printed or stamped name of Notary Public My Commission Expires: DEBORAH K BECKETT MY COMMISSION#EE121571 EXPIRES:AUG 14,2015 iw;i, 11mz h?xtebetn May WA Me_ 70 17460589:9 16A4 ASSOCIATION: MUSSORIE VILLAGE AT FIDDLER'S CREEK ASSOCIATION, INC., a Florida corporation not for profit WITNESSES AS TO ASSOCIATION: : B Y (/ --- Signature JOH SHER, President Print Name [CORPORATE SEAL] Signature Print Name STATE OF FLORIDA ) ) SS COUNTY OF ) I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, the foregoing instrument was acknowledged before me by JOHN ASHER, as President of MUSSORIE VILLAGE AT FIDDLER'S CREEK ASSOCIATION, INC., a Florida corporation not for profit, freely and voluntarily under authority duly vested in him by said corporation, and that the seal affixed thereto is the true corporate seal of said corporation. He is personally known to me. WITNESS my hand and official seal in the County and State last aforesaid this day of , 2014. Notary Public, State of Florida at Large My Commission Expires: Typed, Printed or Stamped Name of Notary Public 16A4 EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY LOTS 1 THROUGH 54 AND ALL LANDSCAPE BUFFER EASEMENTS ("L.B.E.") AND SIGN EASEMENTS ("S.E."), AS SHOWN ON THAT CERTAIN PLAT OF MUSSORIE VILLAGE AT FIDDLER'S CREEK, RECORDED IN PLAT BOOK PAGES THROUGH , OF THE PUBLIC RECORDS OF COLLIER COUNTY, FLORIDA. I 7460589:9 16A4 EXHIBIT `B" SITE PLAN OF MUSSORIE VILLAGE AT FIDDLER'S CREEK® 17460589:9 „ - 16 A 4 . .. . .. , r-- ? rTi r- V) --, c, ..... , ,, Lig,'Is 1-1 3 _ rn,- rz • ,-,, g ) 0 2 NI b-----, / ------__ ':,, 'C • \ N t;/ ,z1 .. '..'. k-'1,-,,--• M...,• .- , ..„ % 7 (,) ,,, — .... '.5' —c) .13 o o pi, ff., ., --.. ,; gio 110 _ - 1: (A N L:., - Q ..".• 47 .,... .,,,, 0 C) eh ,- Z / c ... -.______ / .i.901/1 p. .„ ',.i '''.. - 14 , 0 '. ■-'' ■ ',..s os, , ,-. 0 ' -- 0,3 0 0 0 ..., . r- , w `,,,, c1/2„., g7 tt 4, -- . III,. . \ I / 10 ' C'''Z.14 11•••i• ... _. 4, , ,, rrn -- ' .. 14.C-)r) deLb (,) g'i, :-.1...,..?,tri FE: CCO r) ,c..)---- 10 )......a ,....z r*;P 6; CD c r•-■ -,() 1—t c-t --■ o o — \ g 10 --1 4 , _- ■ t , k , rn i;tit t f,t, CD , 4 • P7g NO".WIS•e ,-0 ... taco' 555 S • --'-- '- ' • ' '' ' , ” ' ' .- ' , r .- ,' ':. .-,r,.:-,,.1;,.3.:::,,;,:.S F.'.,',.,-.,, ,'S;:■-•''',,,'-'',';.",".',','--- I . „ . , ■, --."" . '■ . ... .i '.'t. ■:4;'-,- .;..' , .4. 'Z•• .,;''.;.:.:-,,Z.t.ft ...,.''''4- ..'' :' . "r..; .,1: UV ■■• ,.. .C: .. , '''■,,";;'.t 1 0 Xi-7 0 .e..'.:""-',":".'..—, .'';',... -, ':,.::'.., .'''';'“...:•1...'.t.,.•":,'..:1 -:.':-....: -<-' N.) 5--.1'..- ,,- : ...—::---:.,--- ;;,-- ' ,1-;:•..1. >0 --am Agt.':- 0 �. 6 A 4 EXHIBIT "C" INITIAL USE RESTRICTIONS For purposes of these Use Restrictions, unless the context otherwise requires, Owner shall also include the family, invitees, guests, licensees, lessees and sublessees of any Owner, and any other permitted occupants of a Home. All the Property shall be held, used and enjoyed subject to the following limitations and restrictions, subject to the exemption of Declarant in Paragraph 37 hereof: 1. Single-Family Use. The Homes shall be for single-family use only. No commercial occupation or activity may be carried on in Mussorie Village at Fiddler's Creek® except as such occupation or activity is permitted to be carried on by Declarant under the Village Covenants. A family is defined to mean any number of persons related by blood, marriage or adoption or not more than two (2) unrelated persons living as a single housekeeping unit. 2. Nuisance. Subject to allowances for reasonable construction activities, no obnoxious or offensive activity shall be carried on, in or about the Lots or in or about any Improvements, or on any portion of Mussorie Village at Fiddler's Creek®, nor shall anything be done therein which may be or become an unreasonable annoyance or a nuisance to any Owner. No use or practice shall be allowed in or around the Lots which is a source of annoyance to Owners or occupants of Homes or which interferes with the peaceful possession or proper use of the Lots or the surrounding areas. No loud noises or noxious odors shall be permitted in any Improvements or Homes. Without limiting the generality of any of the foregoing provisions, no horns, whistles, bells or other sound devices (other than security devices used exclusively for security purposes), noisy or smoky vehicles, large power equipment or large power tools, unlicensed off-road motor vehicles or any items which may unreasonably interfere with television or radio reception of any Owner shall be located, used or placed on any Lot, or exposed to the view of other Owners without the prior written approval of the Architectural Review Board ("ARB"). 3. No Improper Uses. No improper, offensive, hazardous or unlawful use shall be made of any Lot or the Home thereon nor shall anything be done thereon tending to cause embarrassment, discomfort, annoyance or nuisance to any person using any portion of the Property. The Property will be subject to, and the Village Association and each Owner will conform to and observe, all laws, statutes, ordinances, rules and regulations of the United States of America, the State of Florida, the County, and any and all other governmental and public authorities and boards or officers of the same relating to such Property and any Improvements thereon or the use thereof. Violations of laws, orders, rules, regulations or requirements of any governmental agency having jurisdiction thereover relating to any Lot or Home shall be corrected by, and at the sole expense of the Owner of such Lot. 4. Leases. No portion of a Home (other than an entire Home) may be rented and the lease or sale of any Home on a time-share basis is prohibited. All leases shall provide that the I 7460589:9 16A4 Village Association shall have the right to terminate the lease upon default by the tenant in observing any of the provisions of the Village Covenants, the Articles, the Bylaws, these Use Restrictions, the Foundation Documents, or of any other agreement, document or instrument governing the Lots. No Home shall be leased for a term of less than thirty (30) days and no Home may be leased more than three (3) times in any calendar year. A copy of the lease must be provided to the Village Association and the Foundation within five (5) days of the execution of the lease. The Owner of a leased Home shall be jointly and severally liable with his or her tenant to the Village Association to pay any claim for injury or damage to property caused by the negligence of the tenant. Every lease shall be subordinated to any lien filed by the Village Association whether before or after such lease was entered into. In the event that an Owner is delinquent in the payment of his or her Assessments or other sums due and owing to the Village Association, the Lot shall not be leased until such amounts are paid in full or unless the Village Association consents, in writing, to any such lease. If the Lot is leased in violation of this provision, the Village Association may terminate the lease and evict the tenants in addition to imposing all other available remedies. In the event an Owner is in default in the payment of Assessments or other sums due and owing to the Village Association and the Owner's Lot is leased, the Village Association shall have the right and authority to collect the rent to be paid by the tenant to the Owner directly from the tenant. In the event such tenant fails to remit said rent directly to the Village Association within ten (10) days (but no later than the day the next rental payment is due) from the day the Village Association notified such tenant in writing that the rents must be remitted directly to the Village Association, the Village Association shall have the right to terminate the lease and evict the tenant. All sums received from the tenant shall be applied to the Owner's account for the leased Lot according to the priority established in Section 720.3085, Florida Statutes, until the Owner's account is current. All leases entered into by an Owner shall be deemed to automatically incorporate this provision and all the Owners hereby appoint the Village Association its agent for such purpose. The Village Association may, without further approval of the Owner of the leased Lot, terminate the lease for violations of the Village Covenants by the tenants, or the tenant's family or guests and thereafter evict the tenants from the Lot. In addition to any notice to a tenant of a Lot permitted to be given by law, an Owner by acceptance of a deed to a Lot, does hereby irrevocably grant to the Village Association (and its officers, directors, designees, agents, and employees) and to any professional management or accounting firm providing management or accounting services to the Village Association, the right to notify, in writing, the tenant of the Lot of any delinquency by the Owner of the Lot in payment of any monetary obligations due to the Village Association, including but not limited to the amount thereof. Further each Owner hereby agrees and acknowledges that the disclosure of any of Owner's delinquent monetary obligations due to the Village Association, as provided in the preceding sentence, shall not be construed or be deemed to be a violation of the Fair Debt Collection Practices Act ("FDCPA") 15 U.S.C. Section 1692 et. seq. 5. Removal of Sod and Shrubbery; Alteration of Drainage, Etc. Except for Declarant's acts and activities with regard to the development of Mussorie Village at Fiddler's Creek®, no Improvements (including, but not limited to, driveways and landscaping) and no sod, top soil, muck, trees or shrubbery shall be removed from Mussorie Village at Fiddler's Creek® and no change in the condition of the soil or the level of the land of any of the Mussorie Village 1 7460589:9 16A4 at Fiddler's Creek® area shall be made which would result in any permanent change in the flow or drainage of storm water within Mussorie Village at Fiddler's Creek® without prior written consent of the Village Association, the ARB and the CDD. 6. Addition of Landscaping; Alteration of Drainage, Etc. If an Owner receives approval to install additional landscaping to their Lot, the Owner is responsible for increased costs in the maintenance of the additional landscaping and the Village Association or landscape maintenance company will bill the Owner directly for the additional maintenance and the Owner is responsible for payment of the increased maintenance. The installation of additional landscaping shall not result in any permanent change in the flow or drainage of storm water within Mussorie Village at Fiddler's Creek® without prior written consent of the ARB, the Village Association and the CDD. 7. Antenna and Aerial. No outside television, radio, or other electronic towers, aerials, antennae, satellite dishes or device of any type for the reception or transmission of radio or television broadcasts or other means of communication shall hereafter be erected, constructed, placed or permitted to remain on any portion of the Property or upon any improvements thereon, unless expressly approved in writing by the Village Association and the Foundation, except that this prohibition shall not apply to those satellite dishes that are one (1) meter (39.37 inches) in diameter or less, and specifically covered by 47 C.F.R. Part 1, Subpart S, Section 1.4000, as amended, promulgated under the Telecommunications Act of 1996, as amended from time to time, subject to the rights of the Foundation. The Village Association is empowered to adopt rules governing the types of antennae which may be permitted and restrictions relating to safety, location and maintenance of antennae. Subject to the rights of the Foundation, the Village Association may also adopt and enforce reasonable rules limiting installation of permissible dishes or antennae to certain specified locations, and integrated with the Property and surrounding landscape, to the extent that reception of an acceptable signal would not be unlawfully impaired by such rules and provided the cost of complying with such rules would not unreasonably increase the cost of installation of permissible dishes or antennae. Any permissible dishes or antennae shall be installed in compliance with all federal, state and local laws and regulations, including zoning, land-use and building regulations. Further, any Owner desiring to install permissible dishes or antennae may, but is not obligated, submit plans and specifications for same to the Village Association to ensure compliance with the Village Association's rules governing the types of permissible antennae and restrictions relating to safety, location and maintenance of antennae. This Section 7 shall not apply to Declarant. 8. Garbage and Trash. Each Owner shall regularly pick up all garbage, trash, refuse or rubbish around his or her Lot, and no Owner or resident shall place or dump any garbage, trash, refuse or other materials on any other portions of Mussorie Village at Fiddler's Creek®, including any Village Common Area or any property contiguous to Mussorie Village at Fiddler's Creek®. Garbage, trash, refuse or rubbish shall be deposited in appropriate containers. 9. Radio Transmission. No ham radios or radio transmission equipment shall be operated or permitted to be operated within Mussorie Village at Fiddler's Creek® without the prior written consent of the Village Association and the Foundation. 3 17460589:9 16A4 4 10. Signs. No sign, display, poster, advertisement, notice or other lettering of any kind whatsoever (including, without limitation, "For Sale," "For Rent" or `By Owner" or any other signs for the sale or renting of homes) shall be exhibited, displayed, inscribed, painted or affixed in public view of any portion of any building, vehicle or other Improvement in Mussorie Village at Fiddler's Creek® (including, without limitation, a Home) without the prior written approval of the ARB, which approval may be given, withheld, conditioned or denied in the sole and absolute discretion of the ARB. Notwithstanding anything to the contrary contained in these Rules and Regulations, the ARB shall not approve any sign, display, poster, advertisement, notice or other lettering which is or in the nature of a "For Sale," "For Rent," `By Owner" or any other similar sign for the renting or sale of a Home so long as Declarant owns a Lot in Mussorie Village at Fiddler's Creek® or so long as Declarant or any of Declarant's affiliates (or any of their respective successors or assigns) are conducting sales and marketing of Homes in Mussorie Village at Fiddler's Creek® or other communities developed or marketed by Declarant or its affiliates, whichever is later. Signs, regardless of size, used by Declarant or a Builder, their successors or assigns, for advertising and marketing during the Development and Sale Period of Mussorie Village at Fiddler's Creek® or other communities developed and/or marketed by Declarant and/or its Affiliates and other signs authorized by Declarant and/or its Affiliates shall be exempt from these restrictions. Such sign or signs as Declarant and/or its Affiliates and/or a Builder and/or its Affiliates may be required to erect under the terms of an institutional mortgage shall be exempt from this restriction. An Owner may display a security sign, provided by a contractor for security services, as permitted by the HOA Act. This provision may not be amended without the prior written consent of Declarant. All signs shall also require the approval of the Foundation. • 1 1. Animals and Pets. No wildlife, livestock, swine, reptiles, insects or poultry of any kind shall be raised, bred, or kept in any portion of the Property. A reasonable number of dogs, cats, or other domesticated household pets as determined from time to time by the Foundation or these Village Covenants may be permitted in any Home. The ability to keep pets is a privilege, not a right. Pets shall not be permitted to roam free. Any pet, which in the opinion of the Foundation and/or the Village Association endangers health or safety, makes objectionable noise, or constitutes an unreasonable source of nuisance or annoyance to the Owners or residents of other Homes, shall be removed upon request by the Foundation and/or the Village Association. No pets shall be kept, bred or maintained for any commercial purpose. Pets shall at all times when they are outside a Home, be carried or confined on a leash held by a responsible person. Pets shall only be permitted on the Foundation Common Areas and Village Common Areas if such portions thereof are so designated by the Foundation or Village Association, as applicable. A person bringing a pet onto the Foundation Common Areas or Village Common Areas or CDD property shall be responsible for immediately removing any solid waste of the pet. Pets may not be left unattended or leashed in yards or garages or on porches or lanais. Under no circumstances will any dog whose breed is noted for its viciousness or ill-temper, in particular, the "Pit Bull" (as hereinafter defined), Presa Canario, or any crossbreeds of such breeds, be permitted on any portion of the Property. A "Pit Bull" is defined as any dog that is an American Pit Bull Terrier, American Staffordshire Terrier, Staffordshire Bull Terrier, or any dog displaying a majority of the physical traits of any one (1) or more of the above breeds, or any dog exhibiting those distinguishing characteristics which substantially conform to the standards established by the American Kennel Club or United Kennel Club for any of the above breeds. No exotic pet or any animal of any kind which has venom or poisonous defense or capture mechanisms, or if let 4 1 7460589:9 16A4 loose would constitute vermin, shall be allowed on any portion of the Property. Trained seeing- eye dogs will be permitted for those persons holding certificates of blindness and necessity. Other animals will be permitted if such animals serve as physical aides to handicapped persons and such animals have been trained or provided by an agency or service qualified to provide such animals. The guide or assistance animal will be kept in direct custody of the assisted person or the qualified person training the animal at all times when on the Property and the animal shall wear and be controlled by a harness or orange-colored leash and collar. No pet shall be kept outside a Home or on any lanai, unless someone is present in the Home. The Owner shall compensate any person hurt or bitten by his or her pet and shall indemnify the Foundation and the Village Association and hold them harmless against any loss or liability of any kind or character whatsoever arising from or growing out of having any animal within the Property. If a dog or any other animal becomes obnoxious to other Owners by barking or otherwise, the Owner thereof must cause the problem to be corrected; or, if it is not corrected, the Owner, upon written notice by the Village Association, will be required to permanently remove the animal from the Property. All pets must be registered, licensed and inoculated as required by law. The Village Association will promulgate rules and regulations from time to time designating other rules as necessary to regulate pets. 12. Clotheslines. No clothesline or clothes drying which is visible from outside a building shall be undertaken or permitted on any portion of Mussorie Village at Fiddler's Creek®. 13. Temporary Buildings, Etc. No tents, trailers, shacks or other temporary buildings or structures shall be constructed or otherwise placed within Mussorie Village at Fiddler's Creek® except in connection with construction, development, leasing or sales activities permitted under the Village Covenants or with the prior written consent of the Village Association and the Foundation. No temporary structure may be used as a residence. 14. Lakes. No docks shall be constructed within or adjacent to a Lake. Owners are prohibited from using the Lakes for irrigation purposes. Swimming, fishing and watercraft are prohibited in the Lakes. 15. Fences. No fence of any type, including invisible fencing, is permitted to be erected on a Lot without the prior written approval of the ARB and the Foundation. 16. Drainage or Utility Easements. No structures, trees or shrubs shall be placed on any drainage or utility easements, except by Declarant, without the prior written consent of the Village Association. 17. Additions and Alterations. No Home shall be enlarged by any addition thereto or to any part thereof, and no Owner shall make any improvement, addition, or alteration to the exterior of his or her Home, including, without limitation, the painting, staining, or varnishing of the exterior of the Home, without the prior written approval of the ARB as set forth in the Village Covenants and the Foundation, which approval may be withheld for purely aesthetic reasons. 5 17460589:9 16A4 18. Increase in Insurance Rates. No Owner may engage in any action which may reasonably be expected to result in an increase in the rate of any insurance policy or policies covering or with respect to any portion of the Property not owned by such Owner. 19. Mining, Drilling, or Excavation. There shall be no mining, quarrying or drilling for minerals, oil, gas or otherwise ("Mining Activity") undertaken on the Property. Activities of Declarant, or the Village Association in dredging, excavating or maintaining drainage or other facilities or easements shall not be deemed Mining Activities nor will the installation of wells or pumps for sprinkler systems in compliance with applicable governmental requirements be deemed a Mining Activity. 20. Maintenance of Property. The Property and Improvements thereon shall be kept in a good, safe, clean, neat and attractive condition, and all Improvements thereon shall be maintained in a finished, painted and attractive condition. No weeds, underbrush or other unsightly growth shall be permitted to grow or remain upon any portion of the Property, no refuse or unsightly objects shall be allowed to be placed or permitted to remain anywhere thereon, and no grass on said Property shall be permitted to grow to a height in excess of four inches (4") for improved property and ten inches (10") for unimproved property. Excepted from the foregoing shall be all construction debris, refuse, unsightly objects and waste upon any portion of the Property owned by Declarant or its nominee through the period of construction of Homes or other Improvements upon the Property. During construction of a Home or other Improvement upon any portion of the Property, the Owner thereof shall be required to maintain said property in a clean condition and, except for the initial construction of Homes by Declarant or its nominee, to provide receptacles for the disposal of trash and rubbish as well as other construction debris. All such construction debris, refuse, unsightly objects and waste on a portion of the Property must be removed within thirty (30) days after the completion of construction of the Improvement on such portion of the Property, as evidenced by issuance of a certificate of occupancy, if applicable. Upon the failure of a Owner(s) to (i) maintain the portion of the Property and any Improvement thereon which such party is responsible to maintain in accordance with the requirements of the Village Covenants and to the satisfaction of the Village Association and (ii) correct such deficiencies within fifteen (15) days of written notice by the Village Association, unless a longer period is authorized by the Village Association, the Village Association may enter upon such portion of the Property and make such corrections as may be necessary. The cost of such corrections shall be paid by the Owner who is required to perform such maintenance. If any Owner(s) fails to make payment within fifteen (15) days after requested to do so by the Village Association, then the payment requested shall be collected as a Benefited Assessment from such Owner and the Village Association shall be entitled to lien rights upon such Lot requiring such maintenance in accordance with the provisions of the Village Covenants. 21. Subdivision and Partition. No Lot on the Property shall be subdivided. 22. Casualty Destruction to Improvements. In the event a Home(s) and/or other Improvement(s) upon a Lot(s) is damaged or destroyed by casualty, hazard or other loss then, within a reasonable period of time after such incident, the Owner(s) thereof shall either commence to rebuild or repair the damaged Home(s) or Improvement(s) upon obtaining ARB 6 17460589:9 16A4 approval, if required hereunder, diligently continuing such rebuilding or repairing activities to completion or, upon a determination by the Owner(s) thereof that the Home(s) or Improvement(s) will not be repaired or replaced, promptly clear the damaged Home(s) or Improvement(s) and grass over and landscape such Lot(s) as applicable, in a sightly manner consistent with Declarant's plan for beautification of Mussorie Village at Fiddler's Creek®. Any damaged or destroyed Home(s) and other Improvements shall only be repaired or replaced with Home(s) and other Improvements of a similar size and type as those damaged or destroyed and without substantial alteration from what existed prior to the damage or destruction, unless the prior written approval of the ARB and the DRC is obtained. 23. Village Common Area. Nothing shall be stored and/or constructed within or removed from any Village Common Area other than by Declarant, except with the prior written approval of the Village Association. 24. Lake Maintenance Easement. No Improvement on a Lot shall be placed within a Lake Maintenance Easement, and any Improvement placed within the Lake Maintenance Easement shall be removed by Declarant or by the Village Association. The cost of such removal shall be paid by such Owner(s) as an Individual Expense Assessment. 25. Trucks, Commercial Vehicles, Recreational Vehicles, Motor Homes, Mobile Homes, Boats, Campers, Trailers and Other Vehicles. Please see Section 8.33 of the Foundation Declaration for restrictions on vehicles within Fiddler's Creek and the Village. The Foundation and the Village Association shall have the right to authorize the towing away of any vehicles in violation of these provisions with the costs to be borne by the owner or violator. No person, firm or corporation shall maintain or repair any vehicle (including, but not limited to, four-wheel passenger automobiles) upon any portion of the Property; provided, however, Declarant its successors, nominees or assigns and the Village Association may make, or cause to be made, such repairs if necessary in regard to vehicles used in connection with construction, sales or management at Mussorie Village at Fiddler's Creek®. Vehicles which are missing one or more wheels, have one or more deflated tires, are not in an operating condition, or do not have current valid license plates shall not remain upon any portion of the Property for more than two (2) consecutive days. No Owner or his or her family members, guests, invitees or lessees or their family members, guests, or invitees shall be permitted to keep any vehicle on the Property which is deemed to be a nuisance by the Village Association or Declarant. 26. Window Decor. No newspaper, aluminum foil, sheets or other temporary window treatments shall be permitted, except for periods not exceeding two (2) weeks after an Owner or a lessee first moves into a Home or when permanent window treatments are being cleaned or repaired. Window tinting is permitted provided that the type and method of tinting is first approved by the ARB. 27. Hurricane Shutters. No hurricane shutters may be installed without the prior written consent of the DRC and the ARB, which consent may be unreasonably withheld. If the installation of hurricane shutters is made which does not conform with the specifications approved by the DRC and the ARB, then the hurricane shutters will be made to conform by the DRC and/or the ARB at the Owner's expense or they shall he removed. 7 17460589:9 16A4 Approved hurricane shutters shall not be installed or closed, as applicable, before the issuance of a hurricane watch by the National Hurricane Center encompassing the Mussorie Village at Fiddler's Creek® location, and shall be promptly removed when the threat of the storm has passed ("Hurricane Shutter Time Period"). Each Owner who plans to be absent from his or her Home during the hurricane season must prepare his or her Lot prior to such Owner's departure by (a) removing all furniture, potted plants and other movable objects from his or her porch, balcony or patio, if any; (b) designating a responsible firm or individual satisfactory to the Village Association to install and remove hurricane shutters in accordance with the Hurricane Standards and the Hurricane Shutter Time Period requirements; and (c) designating a responsible firm or individual satisfactory to the Village Association to care for the Home should the Home suffer hurricane damage. Such firm or individual shall contact the Village Association for clearance to install or remove hurricane shutters pursuant to the Village Covenants. 28. Landscaping, Lawn Decor, and Improvements. No Improvements of any kind including, without limitation, any building, shed, play structure, basketball hoops, soccer goals, swing sets, athletic/play equipment, wall, topographical feature, mailbox, landscaping, lawn sculpture, fence, swimming pool, tennis court or screened enclosure shall be erected, placed or maintained, and no addition, alteration, modification or change to any such Improvement shall be made without the prior written approval of the ARB, including, but not limited to, painting the Home in a color other than the color originally placed by Declarant on the painted surface. 29. Basketball Backboards. No garage, roof mounted, portable or in-ground mounted basketball backboards are permitted. 30. Water Supply. No individual water supply system for drinking purposes or household use shall be permitted on any Lot, including for irrigation or sprinkler purposes. 31. Sewage Disposal. No individual sewage disposal system shall be permitted on the Property. 32. Yard Sales. No yard sales or neighborhood sales shall be permitted on any Lot or any other area in Mussorie Village at Fiddler's Creek®. 33. Compliance with Village Documents and Foundation Documents. Each Owner and their family members, guests, invitees, and lessees and their family members, guests and invitees shall be bound by and abide by the Village Documents and the Foundation Documents. The conduct of the foregoing parties shall be considered to be the conduct of the Owner responsible for, or connected in any manner with, such individual's presence within Mussorie Village at Fiddler's Creek®. Such Owner shall be liable to the Village Association and shall pay the cost of any maintenance, repair or replacement of any real or personal property located on the Village Common Area rendered necessary by his or her act, neglect or carelessness, or by that of any other of the foregoing parties as an Individual Expense Assessment. 8 17460589:9 16A4 - 34. No Implied Waiver. The failure of the Village Association or Declarant to object to a Owner's or other party's failure to comply with the covenants or restrictions contained herein or any other Village Document (including the rules now or hereafter promulgated) shall in no event be deemed a waiver by Declarant, the Village Association, or of any other party having an interest in the Property of its right to object to same and to seek compliance in accordance with the provisions of the Village Documents. 35. Certain Rights of Declarant. The provisions, restrictions, terms and conditions of these Use Restrictions shall not apply to Declarant as an Owner. 36. Board's Rule-Making Power. The foregoing Use Restrictions shall not be deemed to be all inclusive nor restrict the right of the Village Association to adopt such reasonable rules and regulations governing the use of Mussorie Village at Fiddler's Creek® as the Board may determine from time to time, provided that such rules and regulations: (i) are not in conflict with the provisions hereof; (ii) apply equally to all lawful residents of Mussorie Village at Fiddler's Creek® without discriminating on the basis of whether a Home is occupied by a Owner or his or her lessee; and (iii) for so long as Declarant holds any Homes within Mussorie Village at Fiddler's Creek® for sale in the ordinary course of its business, have the prior written approval of Declarant. Declarant has the right to approve any rule or modification thereof. 9 1 7460589:9 16A4 EXHIBIT "D" ARTICLES OF INCORPORATION OF MUSSORIE VILLAGE AT FIDDLER'S CREEK® ASSOCIATION, INC. 17460589:9 16A4 850-817-8381 7/28/2014 12:29:38 PM PAGE 1/003 Fax Server 4.,• "•• •.;- 4.4. •.. e.• •••' '•1• a• a• as -......,- •; •• �,••.'•• •�• •• '••` •.•''•• • { -r .'f}, Zt. ±. 1: w t • w a'r' �r r r- :*i ,r ' te of II ,:, lbw ta _ ..5-.- .....• _ __ crib ., „„„,.., , ... .... . ,.,4 1,. i a .,. .. ee ; �' r se r . i "4.4!.r:1-11111,11'-'- , �t n, ila of iitalt % f 14:fir C, }f 01 I certify from the records of this office that MUSSORIE VILLAGE AT ,}`j ; % `i< FIDDLER'S CREEK ASSOCIATION, INC. is a corporation organized under the ,-. r •`•. laws of the State of Florida, filed on July 25, 2014. ,,� \ _�i,r %iii., ' The document number of this corporation is N14000006971. r . ., .4)-?' {47p I further certify that said corporation has paid all fees due this office �•,. through December 31, 2014, and its status is active. .. „,,„`. ` • `, I further certify that said corporation has not filed Articles of .. _.f Dissolution. d%.11). l Al: ~ *��`` I further certify that this is an electronically transmitted certificate '; .• , ti authorized by section 15.16, Florida Statutes, and authenticated by the f�f1 ~!fir code, 014A00016087-072814-N14000006971-1/1, noted below. ti 1 .l ;.iV; Authentication Code: 014A00016087-072814-N14000006971-1/1 "4'tf \�11 1f 1411 I'. r tit•}r {: :: Given under my hand and the gi i% Great Seal of the State of Florida, • f Z� at Tallahassee, the Capital, this the ,,,af ■ .1, Twenty-eighth day of July, 2014 f , •�.- .� Z`� \.•1. a .,- ‘-"-,4,, VRA‘ fli)tiA ao1•en 34et3 1y j 41 . enetarp ■ai i Late • • .f; _ ( y {:Ir . : ! •i • ,., ..i ' "(Ill/ T , +. .} •1• (. ."4,.... , ,.•N. ":41. a " ..Or •• •• •I, I' j i . O •HO„ •,\ IWO IWOi Ole. "M • • .,� . + :Y: '!7 ' , ,4 ',,� `, � 'N r ..r, \�r •.r .r` ' \r , \\i' •r I 16A4 850-617--6381 7/28/2014 12 :29:36 PM PAGE 2/003 Fax Server a• '••. •,• ,lb• •i• •• ••; • •• . •• ••'Y•.&- ■ •t1 .II AD• ••.. ••) •�: .-•' ••: • `. "r ;.f : i -,/ 11 %, .. .•r ., ", ., ,./ .•, ,. , ``r ,., ., `�•. •.r .r ,ter ./ 1/) u• ; 1.4, :::(V.;Of irl =1, - r ;i• , _ tatt ?.4 _ II ay. a �,� .dal _ ,ti+>,v,... • .t. ilrpnrtaient of fitatr . +3 :4+ ;. (t; }f !ily I certify the attached is a true and correct copy of the Articles of e% a C Incorporation of MUSSORIE VILLAGE AT FIDDLER'S CREEK ASSOCIATION, INC. , a '•! �' , , Florida corporation, filed on July 25, 2014, as shown by the records of ,�1��ti -4it. r this office. To7> :ti .' I further certify the document was electronically received under FAX audit' }; y ; number H14000177116. This certificate is issued in accordance with ` • 1 section 15. 16, Florida Statutes, and authenticated by the code noted below;-{;; • o• ''' The document number of this corporation is N14000006971. ti'�t> k • r '. I ,•11_1•• Authentication Code: 014A00016087-072814-N14000006971-1/1 ; ti soot:, \ Le l 1 N 0• 7.- '. 1 ' ti,•}r VOW 'l Are (41fAse • ` 11 ( t. Given under my hand and the it Great Seal of the State of Florida, • r at Tallahassee, the Capital, this the ; `; `' Z r Twenty-eighth day of July, 2014 1:1 . + p � , ', ` 4th,,► •p x 'MO Vrs den ne4 i t- o intletavp at &tate "t4 i •, , . .'.' ,? , .. .. . r .4..„ ,. L ,✓ .. ✓t ,,,1 r:.. 1'N. . V. r1. ,,✓iti ,r!\ 1 1\ 1' N. f'•J/ ' • . .....1', "t w ,t ��i A„'. -./ �i 16A4 850-617-8381 7/28/2014 12:29:36 PM PAGE 3/003 Fax Server July 28, 2014 MUSSORIE VILLAGE AT FIDDLER'S CREEK ASSOCIATION, INC. 551 NORTH CATTLEMAN ROAD, SUITE 200 SARASOTA, FL 34232 The Articles of Incorporation for MUSSORIE VILLAGE AT FIDDLER'S CREEK ASSOCIATION, INC. were filed on July 25, 2014, and assigned document number N14000006971. Please refer to this number whenever corresponding with this office. Enclosed is the certification requested. To be official, the certification for a certified copy must be attached to the original document that was electronically submitted and filed under FAX audit number H14000177116. To maintain "active" status with the Division of Corporations, an annual report must be filed yearly between January 1st and May 1st beginning in the year following the file date or effective date indicated above. It is your responsibility to remember to file your annual report in a timely manner. A Federal Employer Identification Number (FEI/EIN) will be required when this report is filed. Apply today with the IRS online at: https://sa.www4.irs.gov/modiein/individual/index.jsp. Please be aware if the corporate address changes, it is the responsibility of the corporation to notify this office. Should you have questions regarding corporations, please contact this office at (850) 245-6052. Thomas Chang Regulatory Specialist II New Filings Section Division of Corporations Letter Number: 014A00016087 16A4 H14000177116 ARTICLES OF INCORPORATION OF MUSSORIE VILLAGE AT FIDDLER'S CREEK®ASSOCIATION,INC. (A Florida Corporation Not For Profit) In order to form a corporation not for profit under and in accordance with the provisions of Chapters 617 and 720 of the Florida Statutes, the undersigned hereby incorporates this corporation not for profit for the purposes and with the powers hereinafter set forth and, to that end,the undersigned,by these Articles of Incorporation, certifies as follows: ARTICLE I DEFINITIONS The following words and phrases when used in these Articles of Incorporation(unless the context clearly reflects another meaning) shall have the following meanings: 1. "Articles" means these Articles of Incorporation and any amendments hereto. 2. "Assessments" means the assessments for which all Owners are obligated to the Village Association and includes "Individual Lot Assessments," `Benefited Assessments" and "Special Assessments" (as such terms are defined in the Village Covenants) and any and all other assessments which are levied by the Village Association in accordance with the Village Documents. 3. `Board"means the Board of Directors of the Village Association. 4. `Bylaws" means the Bylaws of the Village Association and any amendments thereto. 5. "County" means Collier County,Florida. 6. "Declarant" means Taylor Morrison of Florida, Inc., a Florida corporation, and any successor or assign thereof to which Taylor Morrison of Florida, Inc., a Florida corporation, specifically assigns all or part of the rights of Declarant under the Village Covenants by an express written assignment, whether recorded in the Public Records of the County or not. The written assignment may give notice as to which rights of Declarant are to be exercised and as to which portion of the Property. In any event, any subsequent declarant shall not be liable for any default or obligations incurred by any prior declarant, except as may be expressly assumed by the subsequent declarant. 7. "Director"means a member of the Board. 8. "Home" means a residential dwelling unit constructed or to be constructed within Mussorie Village at Fiddler's Creek®, which is designed and intended for use and occupancy as 1 17460945:3 H14000177116 16A4 H140001.77116 a single-family residence. The term "Home" shall include the Lot as defined in the Village Covenants. 9. "HOA Act" means the homeowners' association act, Chapter 720, Florida Statutes as amended through the date of the Village Covenants amongst the Public Records of the County. 10. "Member" means a member of the Village Association. 11. "Operating Expenses" means the expenses for which Owners are liable to the Village Association as described in the Village Covenants and any other Village Documents and include, but are not limited to: (a)the costs and expenses incurred by the Village Association in owning, administering, operating, maintaining, financing, or repairing (but not reconstructing, replacing or improving), the Village Common Area or any portion thereof and Improvements thereon, all other property owned by the Village Association, and (b) all costs and expenses incurred by the Village Association in carrying out its powers and duties hereunder or under any other Village Documents. 12. "Owner" means the record owner, whether one or more persons or entities, of the fee simple title to any Home within Mussorie Village at Fiddler's Creek®, and includes Declarant for as long as Declarant owns fee simple title to a Home, but excluding therefrom those having such interest as security for the performance of an obligation. 13. "Village" or "Mussorie Village at Fiddler's Creek®" means the real property described in Exhibit"A"to the Village Covenants. 14. "Village Common Area" means all real and personal property, including easements, which the Village Association owns,holds, leases,or otherwise has a right to possess or use for the common use and enjoyment of the Owners. 15. "Village Association" means the Mussorie Village at Fiddler's Creek® Association, Inc., a Florida corporation not for profit. The "Village Association" is NOT a condominium association and is not intended to be governed by Chapter 718, the Condominium Act, Florida Statutes. 16. "Village Covenants" means the Declaration of Village Covenants, Conditions and Restrictions for Mussorie Village at Fiddler's Creek®, which is intended to be recorded amongst the Public Records of the County,and any amendments thereto. 17. "Village Documents" means in the aggregate the Village Covenants, these Articles and the Bylaws and all of the instruments and documents referred to therein, including, but not limited to, any Amendment(s) and Supplemental Declaration(s). Unless otherwise defined herein, the terms defined in the Village Covenants are incorporated herein by reference and shall appear in initial capital letters each time such terms appears in these Articles. 2 17460945:3 H14000177116 16A4 H14000177116 ARTICLE II NAla The name of this corporation shall be MUSSORIE VILLAGE AT FIDDLER'S CREEK® ASSOCIATION, INC., a Florida corporation not for profit, whose principal address and mailing address is 551 North Cattlemen Road,Suite 200,Sarasota, Florida 34232. ARTICLE III PURPOSES The purpose for which the Village Association is organized is to take title to, operate, administer, finance, insure, repair, replace, manage and maintain the Village Common Area in accordance with the terms of, and purposes set forth in, the Village Documents and to carry out the covenants and enforce the provisions of the Village Documents. ARTICLE IV POWERS The Village Association shall have the following powers and shall be governed by the following provisions: A. The Village Association shall have all of the common law and statutory powers of a corporation not for profit. B. The Village Association shall have all of the powers granted to the Village Association in the Village Documents. All of the provisions of the Village Covenants and Bylaws which grant powers to the Village Association are incorporated into these Articles. C. The Village Association shall have all of the powers reasonably necessary to implement the purposes of the Village Association, including,but not limited to,the following: 1. To perform any act required or contemplated by it under the Village Documents. 2. To make, establish, amend, abolish (in whole or in part) and enforce reasonable rules and regulations governing the use of the Village Common Area. 3. To make, levy and collect Assessments for the purpose of obtaining funds from its Members to pay Operating Expenses and other costs defined in the Village Covenants and costs of collection, and to use and expend the proceeds of Assessments in the exercise of the powers and duties of the Village Association. 4. To own, maintain, repair, replace, operate and convey the Village Common Area in accordance with the Village Documents and to assist in the enforcement of the Village Covenants. 3 17460945:3 H14000177116 16A4 H14000177116 5. To enforce by legal means the obligations of the Members and the provisions of the Village Documents. 6. To employ personnel, retain independent contractors and professional personnel, and enter into service contracts to provide for the maintenance, operation, administration, financing, insuring, repairing,replacing and management of the Village Common Area and to enter into any other agreements consistent with the purposes of the Village Association, including, but not limited to, agreements with respect to professional management of the Village Common Area and to delegate to such professional management certain powers and duties of the Village Association. 7. To enter into the Village Covenants and any amendments thereto and instruments referred to therein. 8. To provide, to the extent deemed necessary by the Board, any and all services and do any and all things which are incidental to or in furtherance of things listed above or to carry out the Village Association mandate to keep and maintain Mussorie Village at Fiddler's Creek® in a proper and aesthetically pleasing condition and to provide the Owners with services, amenities, controls, rules and regulations and enforcement which will enhance the quality of life at Mussorie Village at Fiddler's Creek®. 9. To borrow money and to obtain such financing as is necessary to maintain, repair and replace the Village Common Area in accordance with the Village Covenants and, as security for any such loan, to collaterally assign the Village Association's right to collect and enforce Assessments levied for the purpose of repaying any such loan. 10. Notwithstanding anything contained herein to the contrary, the Village Association shall be required to obtain the approval of seventy-five percent (75%) of all Members (at a duly called meeting of the Members at which a quorum is present) prior to the engagement of legal counsel by the Village Association for the purpose of suing, or making, preparing or investigating any lawsuit, or commencing any lawsuit other than for the following purposes: (a) the collection of Assessments; (b) the collection of other charges which Owners are obligated to pay pursuant to the Village Documents; (c) the enforcement of any applicable use and occupancy restrictions contained in the Village Documents; (d) the enforcement of Village Association rules; (e) the enforcement of a contract entered into by the Village Association with vendors providing services to the Village Association; 4 17460945:3 H14000177116 16A. 4 H14000177116 (f) dealing with an emergency when waiting to obtain the approval of the Members creates a substantial risk of irreparable injury to the Village Common Area or to Member(s) (the imminent expiration of a statute of limitations shall not be deemed an emergency obviating the need for the requisite vote of three-fourths (3/4)of the Members);or (g) filing a compulsory counterclaim. The costs of any legal proceedings initiated by the Village Association, which are not included in the above exceptions shall be financed by the Village Association only with monies that are collected for that purpose by Special Assessment(s) and the Village Association shall not borrow money, use reserve funds, or use monies collected for other Association obligations. ARTICLE V MEMBERS AND VOTING The qualification of Members of the Village Association, the manner of their admission to membership, the manner of the termination of such membership and the manner of voting by Members shall be as follows: A. Until such time as the first deed of conveyance of a Home from Declarant to an Owner is recorded amongst the Public Records of the County ("First Conveyance"), the membership of the Village Association shall be comprised solely of Declarant. Until the First Conveyance, Declarant shall be entitled to cast the one(l) and only vote on all matters requiring a vote of the membership. B. Upon the First Conveyance, Declarant shall be a Member as to each of the remaining Homes until each such Home is conveyed to another Owner, and thereupon and thereafter each and every Owner, including Declarant as to Homes owned by Declarant, shall be a Member and exercise all of the rights and privileges of a Member. C. Membership in the Village Association for Owners other than Declarant shall be established by the acquisition of ownership of fee simple title to a Home as evidenced by the recording of an instrument of conveyance amongst the Public Records of the County. Where title to a Home is acquired by conveyance from a party other than Declarant by means of sale, gift, inheritance, devise, judicial decree or otherwise, the person, persons or entity thereby acquiring such Home shall not be a Member unless or until such Owner shall deliver a true copy of a deed or other instrument of acquisition of title to the Village Association. D. The Village Association shall have two (2)classes of voting membership: 1. "Class A Members" shall be all Members, with the exception of Declarant while Declarant is a Class B Member, each of whom shall be entitled to one (1) vote for each Home owned. 2. "Class B Members" shall be Declarant, who shall be entitled to three times the total number of votes of the Class"A" Members plus one. Class "B" membership shall cease 5 17460945:3 H14000177116 16A4 H14000177116 and be converted to Class "A" membership upon the earlier to occur of the following events ("Turnover Date"): (i) Three(3) months after the conveyance of ninety percent (90%)of the Homes by Declarant, as evidenced by the recording of instruments of conveyance of such Homes amongst the Public Records of the County;or (ii) upon the Class `B" Member abandoning or deserting its responsibility to maintain and complete the amenities or infrastructure as disclosed in the Village Documents. There is a rebuttable presumption that Declarant has abandoned and deserted the Property if Declarant has unpaid Assessments or guaranteed amounts under Section 720.308 of the HOA Act for a period of more than two(2) years; (iii) upon the Class `B" Member filing a petition seeking protection under Chapter 7 of the Federal Bankruptcy Code; (iv) upon the Class `B" Member losing title to the Property through a foreclosure action or the transfer of a deed in lieu of foreclosure, unless the successor owner has accepted an assignment of developer rights and responsibilities first arising after the date of such assignment; (v) upon a receiver for the Class `B" Member being appointed by a circuit court and not being discharged within 30 days after such appointment, unless the court determines within 30 days after such appointment that transfer of control would be detrimental to the Village Association or the Members;or (vi) when, in its discretion,the Class `B"Member so determines. Notwithstanding the foregoing, Class "A" Members are entitled to elect at least one (1) member of the Board when fifty percent (50%) of the Total Developed Lots have been conveyed to Members other than Declarant. On the Turnover Date, Class A Members, including Declarant, shall assume control of the Village Association and elect not less than a majority of the Board. E. The designation of different classes of membership are for purposes of establishing the number of votes applicable to certain Homes, and nothing herein shall be deemed to require voting solely by an individual class on any matter which requires the vote of Members, unless otherwise specifically set forth in the Village Documents. F. No Member may assign, hypothecate or transfer in any manner his or her membership in the Village Association except as an appurtenance to his or her Home. G. Any Member who conveys or loses title to a Home by sale, gift, devise, bequest, judicial decree or otherwise shall, immediately upon such conveyance or loss of title, no longer be a Member with respect to such Home and shall lose all rights and privileges of a Member resulting from ownership of such Home. 6 17460945:3 H14000177116 16A4 H14000177116 H. There shall be only one (1) vote for each Home, except for the Class B Members as set forth herein. If there is more than one Member with respect to a Home as a result of the fee interest in such Home being held by more than one person, such Members collectively shall be entitled to only one (1) vote. The vote of the Owners of a Home owned by more than one natural person or by a corporation or other legal entity shall be cast by the person named in a certificate signed by all of the Owners of the Home, or, if appropriate, by properly designated officers, partners or principals of the respective legal entity("Voting Owner"), and filed with the Secretary of the Village Association, and such certificate shall be valid until revoked by a subsequent certificate. If such a certificate is not filed with the Secretary of the Village Association, the vote of such Home shall not be considered for a quorum or for any other purpose. Notwithstanding the foregoing provisions, whenever any Home is owned by a husband and wife they may, but shall not be required to,designate a Voting Owner. In the event a certificate designating a Voting Owner is not filed by the husband and wife, the following provisions shall govern their right to vote: 1. When both are present at a meeting, each shall be regarded as the agent and proxy of the other for purposes of casting the vote for each Home owned by them. In the event they are unable to concur in their decision upon any topic requiring a vote, they shall lose their right to vote on that topic at that meeting, but shall count for purposes of establishing a quorum. 2. When only one (1) spouse is present at a meeting, the person present may cast the Home vote without establishing the concurrence of the other spouse, absent any prior written notice to the contrary by the other spouse. In the event of prior written notice to the contrary to the Village Association by the other spouse, the vote of said Home shall not be considered, but shall count for purposes of establishing a quorum. 3. When neither spouse is present, the person designated in a "Proxy" (as defined in the Bylaws)signed by either spouse may cast the Home vote,when voting by Proxy is allowed, absent any prior written notice to the contrary to the Village Association by the other spouse or the designation of a different Proxy by the other spouse. In the event of prior written notice to the contrary to the Village Association or the designation of a different Proxy by the other spouse, the vote of said Home shall not be considered, but shall count for purposes of establishing a quorum. I. A quorum shall consist of persons entitled to cast at least thirty percent (30%) of the total number of votes of the Members. ARTICLE VI TERM The term for which this Association is to exist shall be perpetual. In the event of dissolution of the Village Association(unless same is reinstated), other than incident to a merger or consolidation, all of the assets of the Village Association shall be conveyed to a similar 7 1 7460945:3 H14000177116 16A4 H14000177116 homeowners association or a public agency having a similar purpose, or any Member may petition the appropriate circuit court of the State of Florida for the appointment of a receiver to manage the affairs of the dissolved Association and its properties in the place and stead of the dissolved Association and to make such provisions as may be necessary for the continued management of the affairs of the dissolved Association and its properties. ARTICLE VII .INCORPORATOR The name and address of the Incorporator of these Articles is: Mark F. Grant, 200 East Broward Boulevard, Suite 1500,Fort Lauderdale, Florida 33301. ARTICLE VIII OFFICERS The affairs of the Village Association shall be managed by the President of the Village Association, assisted by the Vice President(s), Secretary and Treasurer, and, if any, by the Assistant Secretary(ies) and Assistant Treasurer(s), subject to the directions of the Board. Except for officers elected prior to the Turnover Date, officers must be Members, or the parents, children or spouses of Members. The Board shall elect the President, Secretary and Treasurer, and as many Vice Presidents, Assistant Secretaries and Assistant Treasurers as the Board shall, from time to time, determine. The President shall be elected from amongst the membership of the Board, but no other officer need be a Director. The same person may hold two or more offices, the duties of which are not incompatible;provided,however,the office of President and a Vice President shall not be held by the same person, nor shall the office of President and Secretary or Assistant Secretary or Treasurer or Assistant Treasurer be held by the same person. ARTICLE DC FIRST OFFICERS The names of the officers who are to serve until the first election of officers by the Board are as follows: President John P.Asher Vice President Valerie McChesney Vice President John Steven Kempton Vice President Tracy Briones Treasurer Valerie McChesney Secretary Tracy Briones 8 17460945:3 H14000177116 16A4 H14000177116 ARTICLE X BOARD OF DIRECTORS A. The number of Directors on the first Board of Directors of the Village Association ("First Board") and the "Initial Elected Board" (as hereinafter defined) shall be three (3). The number of Directors elected by the Members subsequent to the "Declarant's Resignation Event at the "Initial Election Meeting" (as hereinafter defined) shall be an odd number of no less than three (3) nor more than seven (7), as the Board shall from time to time determine prior to each meeting at which Directors are to be elected. Except for Declarant-appointed Directors, Directors must be Members or the parents, children or spouses or shareholders, members, officers or directors of Members. There shall be only one(1) vote for each Director. B. The names and addresses of the persons who are to serve as Directors on the First Board are as follows: NAMES ADDRESSES John P.Asher 551 N.Cattlemen Road,Suite 200 Sarasota,FL 34232 Valerie McChesney 551 N.Cattlemen Road,Suite 200 Sarasota,FL 34232 Tracy Briones 551 N.Cattlemen Road,Suite 200 Sarasota,FL 34232 Declarant reserves the right to replace and/or designate and elect successor Directors to serve on the First Board for so long as the First Board is to serve, as hereinafter provided. C. Declarant intends that Mussorie Village at Fiddler's Creek®, if and when ultimately developed, will contain approximately fifty-four (54) Lots with Homes constructed thereon (collectively, "Total Developed Lots"). Notwithstanding the foregoing, however, Declarant has reserved the right in the Village Covenants to modify the Development Plan (as defined in the Village Covenants) for Mussorie Village at Fiddler's Creek®, to withdraw land from Mussorie Village at Fiddler's Creek® and to change the number of Homes to be constructed therein. D. Upon the Turnover Date, the Members (including Declarant) shall be entitled to elect all the Directors. The election shall occur at a special meeting of the membership to be called by the Board for such purpose ("Initial Election Meeting"). The First Board shall serve until the Initial Election Meeting. D. The Board shall continue to be so designated and elected, at each subsequent "Annual Members' Meeting" (as defined in the Bylaws). 9 174.60945:3 H14000177116 16A4 H14000177116 E. A Director (other than a Declarant-appointed Director) may be removed from office upon the affirmative vote or the agreement in writing of a majority of the voting interests of Members for any reason deemed to be in the best interests of the Members. A meeting of the Purchaser Members to so remove a Director(other than a Declarant-appointed Director) shall be held upon the written request of ten percent (10%) of the Members. Any such recall shall be effected and a recall election shall be held, if applicable, as provided in the HOA Act. F. The Initial Election Meeting shall be called by the Village Association through the Board, within sixty (60) days after the Members other than Declarant are entitled to elect a majority of Directors as provided in Paragraph C hereof. A notice of meeting shall be forwarded to all Members in accordance with the Bylaws; provided, however, that the Members shall be given at least fourteen (14) days' notice of such meeting. The notice shall also specify the number of Directors which shall be elected by the Members. G. At the Initial Election Meeting, a "staggered" term of office of the Board shall be created as follows: 1. a number equal to fifty percent (50%) of the total number of Directors rounded to the nearest whole number is the number of Directors whose term of office shall be established at two (2) years and the Directors serving for a two (2) year term will be the Directors receiving the most votes at the meeting; and 2. the remaining Directors' terms of office shall be established at one (1) year. At each Annual Members' Meeting thereafter, as many Directors of the Village Association shall be elected as there are Directors whose regular term of office expires at such time, and the term of office of the Directors so elected shall be for two (2) years, expiring when their successors are duly elected and qualified. H. The resignation of a Director who has been designated by Declarant or the resignation of an officer of the Village Association who has been elected by the First Board shall be deemed to remise, release, acquit, satisfy and forever discharge such officer or Director of and from any and all manner of action(s), cause(s) of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law or in equity,which the Village Association or the Members had, now have or will have or which any personal representative, successor, heir or assign of the Village Association or the Members hereafter can, shall or may have against said officer or Director for, upon or by reason of any matter, cause or thing whatsoever from the beginning of the world to the day of such resignation, except for such Director's or officer's willful misconduct or gross negligence. 10 17460945:3 H14000177116 16A4 H14000177116 ARTICLE XI INDEMNIFICATION Each and every Director and officer of the Village Association shall be indemnified by the Village Association against all costs, expenses and liabilities, including attorney and paralegal fees at all trial and appellate levels and postjudgment proceedings, reasonably incurred by or imposed upon him or her in connection with any negotiation, proceeding, arbitration, litigation or settlement in which he or she becomes involved by reason of his/her being or having been a Director or officer of the Village Association, and the foregoing provision for indemnification shall apply whether or not such person is a Director or officer at the time such cost, expense or liability is incurred. Notwithstanding the above, in the event of any such settlement, the indemnification provisions provided in this Article XI shall not be automatic and shall apply only when the Board approves such settlement and reimbursement for the costs and expenses of such settlement as being in the best interest of the Village Association, and in the event a Director or officer admits that he or she is or is adjudged guilty of willful misconduct or gross negligence in the performance of his or her duties, the indemnification provisions of this Article XI shall not apply. The foregoing right of indemnification provided in this Article XI shall be in addition to and not exclusive of any and all rights of indemnification to which a Director or officer of the Village Association may be entitled under statute or common law. ARTICLE XII BYLAWS The Bylaws shall be adopted by the First Board, and thereafter may be altered, amended or rescinded in the manner provided for in the Bylaws. In the event of any conflict between the provisions of these Articles and the provisions of the Bylaws, the provisions of these Articles shall control. ARTICLE XIII AMENDMENTS A. Prior to the First Conveyance, these Articles may be amended only by an instrument in writing signed by Declarant and filed in the Office of the Secretary of State of the State of Florida. B. After the First Conveyance, and prior to the Turnover Date, these Articles may be amended solely by a majority vote of the Board, without the prior written consent of the Members, at a duly called meeting of the Board. C. After the Turnover Date,these Articles may be amended in the following manner: 1. (a) The Board shall adopt a resolution setting forth the proposed amendment and directing that it be submitted to a vote at a meeting of the Members, which may be at either the Annual Members' Meeting or a special meeting. Any number of proposed amendments may be submitted to the Members and voted upon by them at one (1) meeting. 11 17460945:3 H14000177116 16A4 H14000177116 (b) Written notice setting forth the proposed amendment or a summary of the changes to be effected thereby shall be given to each Member within the time and in the manner provided in the Bylaws for the giving of notice of meetings. (c) At such meeting, a vote of the Members shall be taken on the proposed amendment(s). The proposed amendment(s) shall be adopted upon receiving the affirmative vote of a majority of the number of Members in the Village Association. 2. An amendment may be adopted by a written statement (in lieu of a meeting)signed by all Members and all members of the Board setting forth their intention that an amendment to the Articles be adopted. D. These Articles may not be amended without the written consent of a majority of the members of the Board. E. Notwithstanding any provisions of this Article XIII to the contrary,these Articles shall not be amended in any manner which shall abridge,prejudice, amend or alter the rights of: (i) Declarant, without the prior written consent thereto by Declarant, for so long as Declarant holds either a leasehold interest in or title to at least one (1) Home; and (ii) any "Institutional Mortgagee" (as such term is defined in the Village Covenants) without the prior written consent of such Institutional Mortgagee. F. Notwithstanding the foregoing provisions of this Article XIII to the contrary, no amendment to these Articles shall be adopted which shall abridge, prejudice, amend or alter the rights of Declarant hereunder, including, but not limited to, Declarant's right to designate and select members of the First Board or otherwise designate and select Directors as provided in Article X hereof, nor shall any other amendment be adopted or become effective without the prior written consent of Declarant. G. Any instrument amending these Articles shall identify the particular article or articles being amended and shall provide a reasonable method to identify the amendment being made. A certified copy of each such amendment shall be attached to any certified copy of these Articles, and a copy of each amendment certified by the Secretary of State shall be recorded amongst the Public Records of the County. ARTICLE XIV RE 1St .__! to;t .C._ i . ' i __ IA__. s . ►M. The street address of the initial registered office of the Village Association is 1200 South Pine Island Road, Plantation, FL 33324, and the initial registered agent of the Village Association at that address shall be NRAI Services,Inc. IN WITNESS WHEREOF, the Incorporator has hereunto affixed his signature, this 25th day of July,2014. MARK F.GRANT,Incorporator 12 17460945:3 H14000177116 16A 4 H14000177116 The undersigned hereby accepts the designation of Registered Agent as set forth in Article XIV of these Articles of Incorporation,and acknowledges that he/she is familiar with and accepts the obligations imposed upon registered agents under the Florida Not For Profit Corporation Act. REGISTERED AGENT: NRAI SERVICES,INC. By: " '.�+.r;r V �• Dated: 7/25/2014 13 17460945:3 H14000177116 16A4 EXHIBIT "E" BYLAWS OF MUSSORIE VILLAGE AT FIDDLER'S CREEK® ASSOCIATION, INC. Section 1. Identification of Association These are the Bylaws of Mussorie Village at Fiddler's Creek® Association, Inc. ("Village Association") as duly adopted by its Board of Directors ("Board"). The Village Association is a corporation not for profit, organized pursuant to Chapters 617 and 720, Florida Statutes. 1.1. The principal office and mailing address of the Village Association shall be for the present at 55 I North Cattlemen Road,Suite 200, Sarasota, Florida 34232,and thereafter may be located at any place designated by the Board. 1.2. The fiscal year of the Village Association shall be the calendar year. 1.3. The seal of the Village Association shall bear the name of the Village Association, the word "Florida" and the words "Corporation Not For Profit." Section 2. Explanation of Terminology The terms defined in the Articles of Incorporation of the Village Association ("Articles") as well as in the Declaration of Village Covenants,Conditions,Restrictions and Easements for Mussorie Village at Fiddler's Creek® ("Village Covenants") are incorporated herein by reference and shall appear in initial capital letters each time such terms appear in these Bylaws. Section 3. Membership; Members' Meetings; Voting and Proxies 3.1. The qualification of Members, the manner of their admission to membership in the Village Association, the manner of termination of such membership and the voting by Members shall be as set forth in the Articles. 3.2. The Members shall meet annually("Annual Members'Meeting").The Annual Members' Meeting shall be held at the office of the Village Association or at such other place in the County as the Board may determine and on such day and at such time as designated by the Board in the notice of such meeting commencing with the year following the year in which the Articles are filed with the Secretary of State. The purpose of the Annual Members'Meeting shall be to hear reports of the officers. elect members of the Board (when that shall be appropriate as determined by the provisions of the Articles)and transact any other business authorized to be transacted at such Annual Members' Meeting. 17460974:3 16A4 3.3. Special meetings (meetings other than the Annual Members' Meeting) of the Members shall be held at any place within the County whenever called by the President or Vice President or by a majority of the Board. A special meeting must be called by such President or Vice President upon receipt of a written request from Members having the right to vote at least one-third (1/3) of the total number of votes entitled to be cast by Members at any such special meeting. 3.4. Except as otherwise provided in the Articles, a written notice of each Members' meeting, whether an Annual Members' Meeting or a special meeting (collectively "Meeting"), shall be given to each Member entitled to vote thereat at the address of the Home owned by such Owner, or such other address as the Owner shall notify the Village Association of in writing and shall be mailed to the said address not less than fourteen(14) days nor more than forty-five (45) days prior to the date of the Meeting. Proof of such mailing shall be given by the affidavit of the person giving the notice. Any notice given hereunder shall state the time and place of the Meeting and the purposes for which the Meeting is called. The notices of all Annual Members' Meetings shall, in addition, specify the number of Directors of the Village Association to be designated by Declarant and the number of Directors to be elected by the Members, if applicable. Notwithstanding any provisions hereof to the contrary, notice of any Meeting may be waived before, during or after such Meeting by a Member or by the person entitled to vote for such Member by signing a document setting forth the waiver of such notice. 3.5. The Members may, at the discretion of the Board, act by written response in lieu of a Meeting provided written notice of the matter or matters to be agreed upon is given to the Members or duly waived in accordance with the provisions of these Bylaws. Unless some greater number is required under the Mussorie Village at Fiddler's Creek®Documents and except as to the election of Directors, which shall be accomplished by plurality vote, the decision of a majority of the votes cast by Members as to the matter or matters to be agreed or voted upon shall be binding on the Members provided a quorum is either present at such Meeting or submits a response if action is taken by written response in lieu of a Meeting, as the case may be. The notice with respect to actions to be taken by written response in lieu of a Meeting shall set forth the time period during which the written responses must be received by the Village Association. 3.6. (a) A quorum of the Members shall consist of Members entitled to cast thirty percent (30%) of the total number of votes of the Members. Limited "Proxies" and general "Proxies" (as hereinafter defined in Paragraph 3.10) may be used to establish a quorum. (b) When a quorum is present at any Meeting and a question which raises the jurisdiction of such Meeting is presented, the holders of a majority of the voting rights present in person or represented by written Proxy shall be required to decide the question. However, if the question is one upon which a vote other than the majority vote of a quorum is required by express provision of the Mussorie Village at Fiddler's Creek® Documents or by law, then such express provision shall govern and control the required vote on the decision of such question. 3.7. At any Annual Members' Meeting when elections of Directors are to occur, written ballots are to be supplied to Members for such purposes. The Board shall adopt a procedure 17460974:3 16A 4 . to be followed for each election, which procedure shall specify if nominations for Directors shall be submitted before the meeting so that absentee ballots may be used or if nominations for Directors will be taken at the Meeting and in which case absentee ballots may not be used. Any procedure adopted by the Board shall require the use of secret ballots. Members may not vote for Directors by Proxy but Proxies may be used to establish a quorum. Furthermore, at any Annual Members' Meeting at which Directors are to be elected, the "Chairman" (as hereinafter defined in Paragraph 7.2) shall appoint an"Election Committee"consisting of three(3)Members to supervise the election,count and verify ballots, disqualify votes if such disqualification is justified under the circumstances and certify the results of the election to the Board. The Election Committee shall be able to determine questions within its jurisdiction by plurality vote of all three (3) members, but matters resulting in deadlocked votes of the Election Committee shall be referred to the entire Board for resolution. 3.8. If a quorum is not in attendance at a Meeting, the Members who are present, either in person or by Proxy, may adjourn the Meeting from time to time until a quorum is present with no further notice of such adjourned Meeting being required unless otherwise determined by the Board. 3.9. Minutes of all Meetings shall be kept in a businesslike manner and be available for inspection by the Members and Directors at all reasonable times. The Village Association shall retain minutes for at least seven (7) years subsequent to the date of the meeting the minutes reflect. 3.10. Voting rights of Members shall be as stated in the Articles with respect to the election of all Boards other than the First Board. Such votes may be cast in person or by Proxy (except for the election of Directors). Proxies may also be used to vote on other agenda items at meetings at which Directors are to be elected, and may also be used to establish a quorum. "Proxy"is defined to mean an instrument containing the appointment of a person who is substituted in the place and stead of the person or authorized representative of an entity entitled to vote. Proxies shall be in writing signed by the person or authorized representative of an entity giving the same and shall be valid only for the particular Meeting designated therein and, if so stated in the Proxy, any adjournments thereof,provided,however, any proxy automatically expires ninety(90)days after the date of the meeting for which it was originally given. A Proxy must be filed with the Secretary of the Village Association before the appointed time of the Meeting in order to be valid. Any Proxy may be revoked prior to the time a vote is cast in accordance with such Proxy. 3.11. The voting on any matter at a Meeting shall be by secret ballot upon request of the holders of twenty percent (20%) of the votes represented at such Meeting and entitled to be cast on such matter, if such request is made prior to the vote in question. 3.12. Voting at Foundation Meetings. Pursuant to the Foundation Documents and the Village Covenants, the Board shall designate a "Voting Representative" (as defined in the Foundation Declaration) to represent the Owners at Foundation meetings and cast the votes of all Owners within the Village Association as provided for in the Foundation Declaration and the Village Covenants. 3 17460974:3 16A4 Section 4. Board; Directors' Meetings 4.1. The business and administration of the Village Association shall be by its Board. 4.2. The election and, if applicable, designation of Directors shall be conducted in accordance with the Articles. Except for Declarant-appointed Directors, Directors must be Members or the parents, children or spouses of Members except that if a Lot is owned by an entity and not an individual, such entity may only appoint a partner,shareholder, member, manager,director or officer of such entity or any of its constituent entities on its behalf to be eligible to serve on the Board. 4.3. (a) Any person elected or designated as a Director shall have all the rights, privileges, duties and obligations of a Director of the Village Association. (b) The term of a Director's service shall be as stated in the Articles and,if not so stated, shall extend until the next Annual Members' Meeting and thereafter until his or her successor is duly elected and qualified or until he or she resigns or is removed in the manner elsewhere provided. 4.4. The organizational meeting of a newly elected Board shall be held within ten (10) days of its election at such place and time as shall be fixed by the Directors at the meeting at which they were elected. Provided the organizational meeting is held directly following the Annual Members' Meeting, no further notice of the organizational meeting shall be necessary; if not, however, notice of the organizational meeting shall be given in accordance with the HOA Act. 4.5. Regular meetings of the Board may be held at such times and places in the County as shall be determined from time to time by a majority of the Directors. Special meetings of the Board may be called at the discretion of the President or the Vice President. Special meetings must be called by the Secretary at the written request of at least one-third(1/3)of the Directors. Any such special meeting may be held in the County at such time and place as determined by the Directors requesting such meeting or in such other place as all of the Directors shall agree upon. 4.6. Notice of the time and place of regular and special meetings of the Board, or adjournments thereof, shall be given to each Director personally,by mail,telephone or electronically transmitted if correctly directed to an electronic mail address at which the Director has consented to receive notice at least three (3) days prior to the day named for such meeting unless such notice is waived before, during or after such meeting. Any Director may waive notice of the meeting in writing before,during or after a meeting and such waiver shall be deemed equivalent to the receipt of notice by such Director. 4.7 Notice of all Board meetings shall be given to the members in accordance with the HOA Act. 4 17460974:3 1644 4 4.8. A quorum of the Board shall consist of the Directors entitled to cast a majority of the votes of the entire Board. Matters approved by a majority of the Directors present at a meeting at which a quorum is present shall constitute the official acts of the Board, except as may be otherwise specifically provided by law, by the Articles or elsewhere herein. If at any meeting of the Board there shall be less than a quorum present, the majority of those present may adjourn the meeting from time to time until a quorum is present. At any meeting that takes place on account of a previously adjourned meeting, any business which might have been transacted at the meeting as originally called may be transacted. In the case of the adjournment of a meeting,no further notice of the adjourned meeting need be given unless otherwise determined by the Board. 4.9. The presiding officer at all Board meetings shall be the President. In the absence of the President, the Directors shall designate any one of their number to preside. 4.10. Directors' fees, if any, shall be determined by the Members. 4.11. Minutes of all meetings of the Board shall be kept in a businesslike manner and be available for inspection by Members and Directors at all reasonable times. 4.12. Meetings of the Board shall be open to all Members on such terms as the Board may determine but at all times pursuant to, and as limited by, the HOA Act. The Board may also hold closed meetings to the extent permitted by applicable law, including,by way of example but not by way of limitation, when the discussion at a meeting is governed by attorney-client privilege. Members shall have the right to participate in meetings with reference to all designated agenda items in accordance with, and as limited by, the HOA Act and any rules and regulations promulgated by the Village Association. In the event a Member conducts himself or herself in a manner detrimental to the carrying on of the meeting, then any Director may expel said Member from the meeting by any reasonable means which may be necessary to accomplish said Member's expulsion.Also,any Director shall have the right to exclude from any meeting of the Board any person who is not able to provide sufficient proof that he or she is a Member or a duly authorized representative,agent or proxy holder of a Member, unless said person has been specifically invited by any of the Directors to participate in such meeting. 4.13. Any action required or permitted to be taken at a meeting of the Directors may be taken without a meeting if a consent in writing, specifically setting forth the action to be taken, shall be signed by all the Directors entitled to vote with respect to the subject matter thereof and such consent shall have the same force and effect as a unanimous vote of the Directors,provided,however, whenever assessments are to be considered,they may be considered only at a meeting of the Directors properly noticed in accordance with the BOA Act. 5 17460974:3 1644 Section 5. Powers and Duties of the Board 5.1. All of the powers and duties of the Village Association shall be exercised by the Board. Such powers and duties of the Board shall include, but not be limited to, all powers and duties set forth in the Mussorie Village at Fiddler's Creek®Documents, as well as all of the powers and duties of a director of a corporation not for profit not inconsistent therewith. 5.2. The Village Association may employ a manager to perform any of the duties, powers or functions of the Village Association. Notwithstanding the foregoing, the Village Association may not delegate to the manager the power to conclusively determine whether the Village Association should make expenditures for capital additions or improvements chargeable against the Village Association funds. The members of the Board shall not be personally liable for any omission or improper exercise by the manager of any duty,power or function delegated to the manager by the Village Association. Section 6. Late Fees An Owner who fails to timely pay any Assessment shall be charged a late charge of Twenty-Five and No/100 ($25.00) Dollars or five percent (5%) of the past due amount, whichever is greater, by the Village Association to defray additional collection costs. This amount is subject to change in the Board's sole discretion. Owners shall be responsible to pay all legal fees(including,but not limited to, attorney and paralegal fees and court costs) incurred in connection with the collection of late Assessments whether or not an action at law to collect said Assessments and foreclose the Village Association's lien has been commenced. Section 7. Officers of the Village Association 7.1. Executive officers of the Village Association shall be the President, who shall be a Director, one or more Vice Presidents,a Treasurer and a Secretary,all of whom shall be elected annually by the Board. Any officer may be removed without cause from office by vote of the Directors at any meeting of the Board. The Board may, from time to time, elect such other officers and assistant officers and designate their powers and duties as the Board shall find to be required to manage the affairs of the Village Association. One person may hold any two offices simultaneously, except when the functions of such offices are incompatible, but no person shall hold the office of President and any of the following offices simultaneously: Vice President, Secretary or Assistant Secretary or Treasurer or Assistant Treasurer. 7.2. The President shall be the chief executive officer of the Village Association. He or She shall have all of the powers and duties which are usually vested in the office of the President of an association or a corporation not for profit, including,but not limited to, the power to appoint such committees from among the Members at such times as he or she may, in his or her discretion, determine appropriate to assist in the conduct of the affairs of the Village Association. If in attendance, the President ("Chairman") shall preside at all meetings of the Board and the Members; provided, however, that the President may appoint a substitute. The President, or his delegate, shall 6 17460974:3 1644 . serve as the Village Association's representative to the Master Association,for voting and attendance purposes at the Master Association meetings. 7.3. In the absence or disability of the President, the Vice President shall exercise the powers and perform the duties of the President. If there is more than one(1) Vice President,the Board shall designate which Vice President is to perform which duties. The Vice President(s) shall also generally assist the President and exercise such other powers and perform such other duties as shall be prescribed by the Board. In the event there shall be more than one Vice President elected by the Board, then they shall be designated as "First Vice President", "Second Vice President",etc.,and shall exercise the powers and perform the duties of the presidency in such order. 7.4. The Secretary shall keep the minutes of all meetings of the Board and the Members, which minutes shall be kept in a businesslike manner and be available for inspection by Members and Directors at all reasonable times. The Secretary shall have custody of the seal of the Village Association and affix the same to instruments requiring such seal when duly authorized and directed to do so. The Secretary shall be custodian for the corporate records of the Village Association,except those of the Treasurer, and shall perform all of the duties incident to the office of Secretary of the Village Association as may be required by the Board or the President. The Assistant Secretary, if any, shall perform the duties of the Secretary when the Secretary is absent and shall assist the Secretary under the supervision of the Secretary. 7.5. The Treasurer shall have custody of all of the monies of the Village Association, including funds, securities and evidences of indebtedness. The Treasurer shall keep the assessment rolls and accounts of the Members and shall keep the books of the Village Association in accordance with good accounting practices and he or she shall perform all of the duties incident to the office of the Treasurer. The Assistant Treasurer, if any, shall perform the duties of the Treasurer when the Treasurer is absent and shall assist the Treasurer under the supervision of the Treasurer. 7.6. The compensation, if any, of the officers and other employees of the Village Association shall be fixed by the Board. This provision shall not preclude the Board from hiring a Director as an employee of the Village Association or preclude contracting with a Director or a party affiliated with a Director for the management or performance of contract services for all or any part of the Mussorie Village at Fiddler's Creek®. Section 8. Resignations Any Director or officer may resign his or her post at any time by written resignation, delivered to the President or Secretary, which shall take effect upon its receipt unless a later date is specified in the resignation, in which event the resignation shall be effective from such date unless withdrawn. The acceptance of a resignation shall not be required to make it effective. The conveyance of all Homes owned by any Director or officer(other than appointees of Declarant) shall constitute a written resignation of such Director or officer. 7 17460974:3 16A 4 Section 9. Accounting Records; Fiscal Management 9.1. The Village Association shall prepare financial reports and maintain accounting records in accordance with the HOA Act. The accounting records of the Village Association shall be open to inspection by Members and Institutional Mortgagees or their respective authorized representatives at reasonable times and in accordance with,but subject to the limitations of,the HOA Act. Such authorization as a representative of a Member must be in writing and signed by the person giving the authorization and dated within sixty(60) days of the date of the inspection. Such records shall include, but not be limited to: (i) a record of all receipts and expenditures; (ii) an account for each Home within Mussorie Village at Fiddler's Creek®which shall designate the name and address of the Owner thereof, the amount of Individual Lot Assessments and all other Assessments, if any, charged to the Home, the amounts and due dates for payment of same, the amounts paid upon the account and the dates paid, and the balance due;(iii) any tax returns, financial statements and financial reports of the Village Association; and (iv) any other records that identify, measure, record or communicate financial information. 9.2. The Board shall adopt a Budget (as defined and provided for in the Village Covenants)of the anticipated Operating Expenses for each forthcoming calendar year(the fiscal year of the Village Association being the calendar year) at a special meeting of the Board ("Budget Meeting") called for that purpose to be held prior to the end of the fiscal year preceding the year to which the Budget applies. Prior to the Budget Meeting, a proposed Budget for the Operating Expenses shall be prepared by or on behalf of the Board. Within thirty(30)days after adoption of the Budget, a copy thereof shall be furnished to each Member, upon request, and each Owner shall be given notice of the Individual Lot Assessment applicable to his or her Home(s). The copy of the Budget, if requested, shall be deemed furnished and the notice of the Individual Lot Assessment shall be deemed given upon its delivery or upon its being mailed to the Owner at the address of the Home owned by such Owner, or such other address as the Owner shall notify the Village Association of in writing. 9.3. In administering the finances of the Village Association, the following procedures shall govern: (i) the fiscal year shall be the calendar year; (ii) any monies received by the Village Association in any calendar year may be used by the Village Association to pay expenses incurred in the same calendar year; (iii) there shall be apportioned between calendar years on a pro rata basis any expenses which are prepaid in any one calendar year for Operating Expenses which cover more than such calendar year; (iv) Assessments shall be made quarterly in advance in amounts no less than are required to provide funds in advance for payment of all of the anticipated current Operating Expenses and for all unpaid Operating Expenses previously incurred; and (v) items of Operating Expenses incurred in a calendar year shall be charged against income for the same calendar year regardless of when the bill for such expenses is received. Notwithstanding the foregoing, the Assessments for Operating Expenses and any periodic installments thereof shall be of sufficient magnitude to insure an adequacy and availability of cash to meet all budgeted expenses in any calendar year as such expenses are incurred in accordance with the accrual basis method of accounting. • 8 17460974:3 16A4 9.4. Individual Lot Assessments shall be payable as provided in the Village Covenants. 9.5. No Board shall be required to anticipate revenue from Assessments or expend funds to pay for Operating Expenses not budgeted or which shall exceed budgeted items, and no Board is required to engage in deficit spending. Should there exist any deficiency which results from there being greater Operating Expenses than monies from Assessments, then such deficits shall be carried into the next succeeding year's Budget as a deficiency or shall be the subject of a Special Assessment or an upward adjustment to the Individual Lot Assessment. 9.6. The depository of the Village Association shall be such bank or banks as shall be designated from time to time by the Board in which the monies of the Village Association shall be deposited. Withdrawal of monies from such account shall be only by checks signed by such persons as are authorized by the Board. 9.7. A report of the accounts of the Village Association shall be made in compliance with the financial reporting requirements set forth in Chapter 720, Florida Statutes. Section 10. Rules and Regulations The Board may at any meeting of the Board adopt rules and regulations or amend, modify or rescind then existing rules and regulations for the operation of Mussorie Village at Fiddler's Creek®; provided,however,that such rules and regulations are not inconsistent with the terms or provisions of the Mussorie Village at Fiddler's Creek® Documents. Copies of any rules and regulations promulgated, amended or rescinded shall be mailed or delivered to all Members at the last known address for such Members as shown on the records of the Village Association at the time of such delivery or mailing and shall not take effect until forty-eight (48)hours after such delivery or mailing, or, in the event both forms of notification are used, whichever is later. Notwithstanding the foregoing, when rules and regulations are to regulate the use of a specific portion of the Village Association Property, same shall be conspicuously posted at such facility and such rules and regulations shall be effective immediately upon such posting. Care shall be taken to insure that posted rules and regulations are conspicuously displayed and easily readable and that posted signs or announcements are designed with a view toward protection from weather and the elements. Posted rules and regulations which are torn down or lost shall be promptly replaced. Section 11. Parliamentary Rules The then latest edition of Robert's Rules of Order shall govern the conduct of all meetings of the Members and the Board; provided, however, if such rules of order are in conflict with any of the Mussorie Village at Fiddler's Creek® Documents, Robert's Rules of Order shall yield to the provisions of such instrument. 9 17460974:3 1644 Section 12. Roster of Owners Each Owner shall file with the Village Association a copy of the deed or other document showing his or her ownership of a Lot in Mussorie Village at Fiddler's Creek®. The Village Association shall maintain such information. The Village Association may also maintain the electronic mailing addresses and numbers designated by Owners for receiving notices sent by electronic transmission of those Owners consenting to receive notice by electronic transmission. The electronic mailing address and numbers provided by Owners to receive notice by electronic transmission shall be removed from Association records when consent to receive notice by electronic transmission is revoked. The Village Association may rely on the accuracy of such information for all purposes until notified in writing of changes therein. Section 13. Amendment of the Bylaws 13.1. These Bylaws may be amended as hereinafter set forth in this Section 13. 13.2. After the Turnover Date, any Bylaw of the Village Association may be amended or repealed, and any new Bylaw of the Village Association may be adopted by either: (i) a majority vote of the Members at any Annual Members'Meeting or any special meeting of the Members called for that purpose or by majority action of the Members who have acted by written response in lieu of a Meeting as permitted by these Bylaws; or (ii) by the affirmative vote of a majority of the Directors then in office at any regular meeting of the Board or at any special meeting of the Board called for that purpose or by written instrument signed by all of the Directors as is permitted by these Bylaws, provided that the Directors shall not have any authority to adopt, amend or repeal any Bylaw if such new Bylaw or such amendment or the repeal of a Bylaw would be inconsistent with any Bylaw previously adopted by the Members. 13.3. Notwithstanding any of the foregoing provisions of this Section 13 to the contrary, until the Turnover Date, all amendments or modifications to these Bylaws and adoption or repeal of Bylaws shall only be made by action of the First Board as described in the Articles, which First Board shall have the power to amend, modify, adopt and repeal any Bylaws without the requirement of any consent, approval or vote of the Members. 13.4. Notwithstanding the foregoing provisions of this Section 13,there shall be no amendment to these Bylaws which shall abridge,prejudice,amend or alter the rights of: (i)Declarant, without the prior written consent thereto by Declarant for so long as Declarant holds title to at least one (1) Home; or (ii) any Institutional Mortgagee without the prior written consent of such Institutional Mortgagee. 13.5. Any instrument amending, modifying, repealing or adding Bylaws shall identify the particular section or sections affected and give the exact language of such modification, 10 17460974:3 16A4 - amendment or addition or of the provisions repealed. A copy of each such amendment,modification, repeal or addition attested to by the Secretary or Assistant Secretary of the Village Association shall be recorded amongst the Public Records of the County. Section 14. Mediation Pursuant to the HOA Act, mandatory mediation before the Department of Business and Professional Regulation ("Department") shall be required prior to institution of court litigation for disputes involving certain actions or inactions, as described therein. Section 15. Recall of Board Members and Election Disputes Pursuant to the HOA Act, mandatory binding arbitration before the Department shall be required for election disputes and disputes involving the recall of any member of the Board. Any member of the Board may be recalled and removed from office as provided for and described in the HOA Act. • Section 16. Interpretation In the case of any conflict between the Articles and these Bylaws, the Articles shall control;and in the case of any conflict between the Village Covenants and these Bylaws, the Village Covenants shall control; and in the event of any conflict between the Articles and the Village Covenants, the Village Covenants shall control. Section 17. Notice and Hearing Procedure. In those instances which specifically provide an Owner the right of Notice and a Hearing, the following procedures and provisions shall apply: A. Notice. The Village Association shall notify the Owner in writing of the noncompliance and set forth the corrective action to be taken. A fine or suspension of use rights may not be imposed without notice of at least fourteen (14) days to the Owner sought to be fined or suspended and an opportunity for a hearing before a committee of at least three (3) members appointed by the Board who are not officers, directors, or employees of the Village Association, or the spouse, parent, child, brother or sister of an officer, director, or employee of the Village Association. If the committee, by majority vote, does not approve a proposed fine or suspension, it may not be imposed. At the Village Association's option, any fine may be levied on a daily basis in the event of a continuing violation without the necessity of a new hearing and without any limitation on the amount of such fine. B. Hearing. Should the Owner still be in noncompliance,the noncompliance shall be presented to the Board after which the Board shall hear reasons why a fine should or should not be imposed. A written decision of the Board shall be submitted to the Owner, as applicable, not later than twenty-one (21) days after said meeting. 11 17460974:3 16A 4 C. Payment. A fine shall be paid not later than thirty(30)days after notice of the imposition of the fine. D. Fines. A fine shall be treated as an Assessment subject to the provisions of the collection of Assessments as otherwise set forth herein. All monies received from fines shall be allocated as directed by the Board, subject always to the provisions of the Declaration. E. Failure to Pay Assessments. Notice and Hearing as provided in Subparagraphs A and B above shall not be required with respect to the imposition of suspension of use rights or fines upon any Owner because of such Owner's failure to pay Assessments or other charges when due. F. Access. Suspension of use rights to Common Areas shall not impair the right of an Owner or tenant of a Lot and/or Home to have vehicular and pedestrian ingress to and egress from such Lot and/or Home, including, but not limited to, the right to park. The foregoing Bylaws of Mussorie Village at Fiddler's Creek® Association, Inc., were adopted by the Board of Directors as of the date of filing the Articles of Incorporation for the Village Association. 12 17460974:3 ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO 6 A 4 THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later than Monday preceding the Board meeting. Complete routing lines#I through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routing lines#I through#2,complete the checklist,and forward to the County_Attorney Office. Route to Addressee(s) (List in routing order) Office Initials Date 1. 2. 3. County Attorney Office County Attorney Office ‘6/ 1(N 4. BCC Office Board of County TV\C\L- � � � Commissioners V`\VS 1 ,\. , \� 5. Minutes and Records Clerk of Court's Office --Vii\ I cA l(f L CZ:V4pm PRIMARY CONTACT INFORMATION Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing information. Name of Primary Staff John Houldswo Phone Number x-5757 Contact/ Department Agenda Date Item was July 8,2014 Agenda Item Number 16-A4 Approved by the BCC Type of Document Construction& Maintenance Agreement Number of Original Two Attached and Bond —Mussorie Village at Fiddler's Documents Attached Creek PO number or account number if document is to be recorded INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A" in the Not Applicable column, whichever is Yes N/A(Not appropriate. (Initial) Applicable) 1. Does the document require the chairman's original signature? JH 2. Does the document need to be sent to another agency for additional signatures? If yes, JH provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be JH signed by the Chairman, with the exception of most letters,must be reviewed and signed by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's N/A Office and all other parties except the BCC Chairman and the Clerk to the Board 5. The Chairman's signature line date has been entered as the date of BCC approval of the JH document or the final negotiated contract date whichever is applicable. 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! , 8. The document was approved by the BCC on July 8,2014 and all changes made during the meeting have been incorporated in the attached document. The County Attorney's Office has reviewed the changes,if applicable. • 9. Initials of attorney verifying that the attached document is the version approved by the BCC,all changes directed by the BCC have been made,and the document is ready for t � Chairman's signature. I:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12 16A4 CONSTRUCTION AND MAINTENANCE AGREEMENT FOR SUBDIVISION IMPROVEMENTS THIS CONSTRUCTION AND MAINTENANCE AGREEMENT FOR SUBDIVISION IMPROVEMENTS entered into this38tt day of (-1144 , 2014 between Taylor Morrison of Florida, Inc., hereinafter referred to as "Develop r", and the Board of County Commissioners of Collier County, Florida, hereinafter referred to as the "Board". RECITALS: A. Developer has, simultaneously with the delivery of this Agreement, applied for the approval by the Board of certain plat of a subdivision to be known as: Mussorie Village at Fiddlers Creek. B. Chapters 4 and 10 of the Collier County Land Development Code requires the Developer to post appropriate guarantees for the construction of the improvements required by said subdivision regulations, said guarantees to be incorporated in a bonded agreement for the construction of the required improvements. NOW, THEREFORE, in consideration of the foregoing premises and mutual covenants hereinafter set forth, Developer and the Board do hereby covenant and agree as follows: 1. Developer will cause to be constructed: Roadway, drainage, water&sewer Improvements within 12 months from the date of approval of said subdivision plat, said improvements hereinafter referred to as the required improvements. 2. Developer herewith tenders its subdivision performance security (attached hereto as Exhibit "A" and by reference made a part hereof) in the amount of$ 166,617.99 -which amount represents 10% of the total contract cost to complete the construction plus 100% of the estimated cost to complete the required improvements at the date of this Agreement. 2. In the event of default by the Developer or failure of the Developer to complete such improvements within the time required by the Land Development Code, Collier may call upon the subdivision performance security to insure satisfactory completion of the required improvements. 4. The required improvements shall not be considered complete until such a statement of substantial completion by Developer's engineer along with the final project records have been furnished to be reviewed and approved by the County Manager or his designee for compliance with the Collier County Land Development Code. 5. The County Manager or his designee shall, within sixty (60) days of receipt of the statement of substantial completion, either: a) notify the Developer in writing of his 1 of 3 . . . 16A 4 preliminary approval of the improvements; or b) notify the Developer in writing of his refusal to approve improvements, therewith specifying those conditions which the Developer must fulfill in order to obtain the County Manager's approval of the improvements. However, in no event shall the County Manager or his designee refuse preliminary approval of the improvements if they are in fact constructed and submitted for approval in accordance with the requirements of this Agreement. 6. The Developer shall maintain all required Improvements for a minimum period of one year after preliminary approval by the County Manager or his designee. After the one year maintenance period by the Developer has terminated, the developer shall petition the County Manager or his designee to inspect the required improvements. The County Manager or his designee shall inspect the improvements and, if found to be still in compliance with the Land Development Code as reflected by final approval by the Board, the Board shall release the remaining 10% of the subdivision performance security. The Developer's responsibility for maintenance of the required Improvements shall continue unless or until the Board accepts maintenance responsibility for and by the County. 7. Six (6) months after the execution of this Agreement and once within every six (6) months thereafter the Developer may request the County Manager or his designee to reduce the dollar amount of the subdivision performance security on the basis of work complete. Each request for a reduction in the dollar amount of the subdivision performance security shall be accompanied by a statement of substantial completion by the Developer's engineer together with the project records necessary for review by the County Manager or his designee. The County Manager or his designee may grant the request for a reduction in the amount of the subdivision performance security for the improvements completed as of the date of the request. 8. In the event the Developer shall fail or neglect to fulfill its obligations under this Agreement, upon certification of such failure, the County Manager or his designee may call upon the subdivision performance security to secure satisfactory completion, repair and maintenance of the required improvements. The Board shall have the right to construct and maintain, or cause to be constructed or maintained, pursuant to public advertisement and receipt of acceptance of bids, the improvements required herein. The Developer, as principal under the subdivision performance security, shall be liable to pay and to indemnify the Board, upon completion of such construction, the final total cost to the Board thereof, including, but not limited to, engineering, legal and contingent costs, together with any damages, either direct or consequential, which the Board may sustain on account of the failure of the Developer to fulfill all of the provisions of this Agreement. 9. All of the terms, covenants and conditions herein contained are and shall be binding upon the Developer and the respective successors and assigns of the Developer. 2 of 3 16A 4 IN WITNESS WHEREOF, the Board and the Developer have caused this Agreement to be executed by their duly authorized representatives this 3D44` day of .l(A I lir , 2014. (Name of Entity) SIGNED IN THE PRESENCE OF Taylor Morrison of Florida, Inc. By: I`-�;l . By: t � ' Pri nted Na /Title: John Asher, Authorized Agent Printed Named o 1n LOA°C r., By (Provide Proper Evidence of Authority) Printed Name:6 as - h%.i67 '._ ATTEST: BOARD OF COUNTY COMMISSIONERS OF COLLIER DWIGHT E.BROCK,C,L'ERK -. COUNTY, FLORIDA � , BY: aI�I�� Deputy Clerk ' ' ' 411w.. (i pB�a 00_ I. TOM HENNIN G, CHAIRMAN Appr6wecl;-a3-0 orrrri and legality: Scott A. Stone, Assistant County Attorney 3 of 3