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HomeMy WebLinkAboutCT 85-35; Aviara|Pacific Rim Country Club & Resort; Tentative Map (CT)LOS ANGCLCS OFFICC roRTY-eiGHTM ruooR 333 SOUTH HOl»e STREET I.OS ANGELES. CALirORNIA 0OO7I (2131 e20-i7ao SHEPPARD, MULLIN. RICHTER & HAMPTON A MfVTNCnSMIP IMCLUOINO VMOrCSSlONAl. COM^MATIONS ATTORNEYS AT LAW TENTH FLOOR 70I 3 STREET SAN OIEGO, CALIFORNIA 92IOI TELEPHONE (6l9t 339-3689 TELECOPIER (619) 23A-3SIS LOS ANGELES OFFICE CABLE SMEPLAW TELEX ia-*»24 NEWPORT BEACH OFFICE SEVENTH FLOOR 4aes MACARTHUR COURT NEWPORT BEACH. CALIFORNIA 92060 (71*1 7S2-e400 SAN FRANCISCO OFFICE SEVENTEENTH FLOOR FOUR EHBARCAOERO CENTER SAN FRANCISCO, CAUFORNIA 94III (-415) A3*-*OiA May 1, 1989 OUR FILE NUMBER CRB-35987 BY PERSONAL DELIVERY Ronald R. Ball, Esq. Assistant City Attorney City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 m BUS Re: Desiltation Basin Maintenance Agreements Dear Ron: We are delivering to you along with this letter revised drafts of the Desiltation Basin Maintenance Agreement which we discussed at our meeting with you, Lloyd Hubbs, and Dan Clark on April 10. Pursuant to our discussion that day, we have separated the original form of Agreement into three separate docximents dealing with (i) the golf course drainage system and its three desiltation basins, (ii) the desiltation basin in Planning Area 5, and (iii) the desiltation basin in Planning Area 28. These three agreements are derived from the same form, but each has been tailored to address any circumstances unique to the particular basin or area in question. For your convenience, we have enclosed clean copies of each of the three agreements, as well as copies which have been marked to reflect where changes were made to the form which we discussed at our April 10 meeting. I believe that most of the changes will be self- explanatory and consistent with our discussions at our recent meeting. As noted above, the first agreement pertains to the golf course's three desiltation basins and drainage system. As you will recall, condition 65 of Planning Commission Resolution No. 2595 specifically provides that the developer and the City must enter into an agreement regarding the maintenance of drainage across the golf course. Rather than creating two separate agreements for the golf course desiltation basins and / SHEPPARD, MULLIN, RICHTER & HAMPTON Ronald R. Ball, Esq. Assistant City Attorney City of Carlsbad May 1, 1989 Page 2 for drainage across the golf course, we decided it was preferable to address all of the issues relating to the golf course in one agreement. The second agreement (for the desiltation basin located in Planning Area No. 5), unlike the other two agreements, does not provide for a perpetual maintenance obligation; instead, the agreement expires in July 1991. We anticipate that within the next two years, this basin shall be conveyed to Mr. Murphy or another third party, and the developer shall have no maintenance obligation thereafter. The third agreement (for the desiltation basin located in Planning Area No. 28) contains a provision recognizing that the current location of this basin may be temporary and that the agreement may need to be amended to reflect a change in its location. With regard to the City's security for Hillman's performance under the agreements, I would like to clarify our position. We have prepared these docximents to reflect that all of the desiltation basin maintenance agreements will be secured by one bond in the amount of $40,000.00. This maintenance bond (Bond No. 8112-95-64) was posted by Pacific Rim Land Associates Limited Partnership in connection with the execution and delivery to the City of that certain Drainage Basin Maintenance Agreement dated July 28, 1988. We feel that this bond provides adequate security to the City for the developer's obligations under these agreements. The amount of this bond is well in excess of the estimated annual cost of maintaining all of these desiltation basins, which has been projected at $12,000 per year. Furthermore, condition 63 of Planning Commission Resolution No. 2595 specifically provides for the posting of a maintenance bond as security for the desiltation basin maintenance agreement. The tentative map conditions do not call for any cash deposits or liens upon land to secure the developer's obligations with regard to drainage. We therefore know of no justification for the City's current position that this security, which was posted at the City's request last year, is no longer adequate and must be replaced with a cash security deposit secured upon default by a lien against the land. After you have had the opportunity to review the enclosed agreements, please contact me or Catherine Potter of my office to discuss any questions or comments you may have. We are SHEPPARD, MULLIN, RICHTER & HAMPTON Ronald R. Ball, Esq. Assistant City Attorney City of Carlsbad May 1, 1989 Page 3 hopeful that we will be in a position to finalize these agreements soon. Vei^ truly yours ^ ulie S. Mebane for SHEPPARD, MULLIN, RICHTER & HAMPTON JSM/pp L013105S.DB6 Enclosure cc: Mr. D. L. Clemens, (w/redline) Mr. Paul J. Klukas, (w/enclosures) Mr. Antonio M. German, Jr., (w/redline) Catherine L. Potter, Esq. Christopher B. Neils, Esq. 3 ML:kew 06/06/89 ML971B.OOOl.0.0 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Loeb and Loeb 1000 Wilshire Boulevard, 18th Floor Los Angeles, California 90017 Attention: Michael Langs, Esq. Memo to Title Company: Upon recordation hereof a conformed copy of this document, stamped by the San Diego County Recorder shall |5e returned to: The City of Carlsbad 2075 Las Palmas Drive Carlsbad, CA 92008 Attn: Planning Department Planning Director MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR AVIARA Carlsbad, California ML:kew 06/06/89 ML971A.OOOl.0.0 MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR AVIARA TABLE OF CONTENTS Page RECITALS 1 1. DEFINITIONS 3 1.00 Access and Utility Plats 4 1.01 Annexation 4 1.02 Apartment Area 4 1.03 Apartment Building 4 1.04 Apartment Unit or Apartment 4 1.05 approve, approval or consent 4 1.06 Architectural Control Committee or Architectural Review Committee 4 1.07 Articles of Incorporation or articles 4 1.08 Assessment 4 1.09 Assessment Roll 5 1.10 Board, Board of Directors or Community Board of Directors 5 1.11 Builder, Merchant Builder, Guest Builder or Developer 5 1.12 Bylaws 5 1.12.1 City 5 1.13 Commercial Area 5 1.14 Common Expense, Community Expense or Common Area Expense 5 1.15 Common Funds or Community Funds 5 1.15.1 Common Interest Subdivision or common interest subdivisions 6 1.16 Community Common Area, Master Common Area or. Common Area 6 1.17 Condominium 6 1.17.1 Condominium Project 7 1.18 Declarant 6 1.19 Dwelling or Dwelling Unit 7 1.19.1 Emergency Repairs 7 1.20 Final Map 7 1.21 First Mortgagee or first mortgagee 7 1.22 Golf Course 7 1.23 Golf Course Owner 8 (i) ML:kew 06/06/89 ML971A.0002.0.0 Page 1.24 Intentionally Omitted 8 1.25 Individual Project 8 1.26 Individual Project Assessments 8 1.27 Individual Project Association, Individual Homeowners Association or Sub-Association 8 1.28 Individual Project Common Area or common area 8 1.29 Individual Project Declaration 8 1.30 Intentionally Omitted 9 1.31 Intentionally Omitted 9 1.32 Institutional Mortgagee 9 1.33 Lot 9 1.34 Intentionally Omitted 9 1.35 Managing Agent 9 1.36 Master Association, Community Association or Association 9 1.37 Intentionally Omitted 10 1.38 Master Declaration or Declaration 10 1.38.1 Master Maintenance Plan 10 1.38.2 Master Plan 11 1.38.3 Merchants Association 11 1.39 Mortgage 11 1.40 Mortgagee 11 1.41 Non-Residential Areas or Non-Residential Lots 11 1.41.1 Non-Residential Contribution 11 1.42 Overall Property 11 1.43 Owner or "Member" 11 1.44 Ownership Interest 12 1.45 Person or person 12 1.46 Phase or phase 12 1.46.1 Phase 1 or DRE Phase 1 12 1.46.2 Phase or phase 12 1.47 Private Street 12 1.48 Project, or Aviara Project 13 1.48.1 Project Entries or Entry Treatments 13 1.49 Public Street 13 1.49.1 Recreational Vehicle Site, RV Site, or RV Area 13 1.50 Regular Assessment 14 1.51 Regulated Improvement 14 1.52 Residential Acreage Lot 14 1.53 Resort Hotel or Hotel 14 1.54 Resort Hotel Owner or Hotel Owner 14 1.54.1 Site Development Plan 14 1.55 Special Assessment • 14 1.56 Sports Complex or Sports Center 14 1.57 Supplemental Declaration 14 (ii) ML:kew 06/06/89 ML971A.0003.0.0 Paae 1.58 Trail System 15 1.59 Unit 15 1.59.1 View Corridors or View Preservation Areas.. 15 1.60 Water Conservation Improvements 15 MASTER ASSOCIATION MEMBERSHIP AND VOTING RIGHTS... 15 2.01 Membership 15 2.02 Transfer 16 2.03 Voting Rights 16 A. Class A Votes 16 B. Class B Votes 18 2.04 Conversion of Votes to One Class 18 3. GENERAL USE RESTRICTIONS 20 3.01 Antenna 20 3.01.1 Cable TV 20 3.02 Children and Guests 20 3.03 Fires 20 3.04 Grading 20 3.04.1 Landscaping Removal 21 3.05 No Temporary Structures 21 3.06 Nuisance 21 3.07 Oil and Mineral Operations 21 3.08 Pets 21 3.08.1 Private Streets 22 3.08.2 Private Sewer Easements 22 3.08.3 Storm Drain Easements 22 3.09 Power Tools 22 3.10 Residential 23 3.10.1 Roof Appurtenances 23 3.11 Rules and Regulations 23 3.12 Signs 23 3.12.1 Trash Receptable Areas 23 3.13 Unsightly Items 23 3.14 Vehicles 23 3.14.1 Protection of View Corridors 24 3.15 Easements and Exemptions for Declarant 24 3.16 Easements and Exceptions for Builders 25 4. MANAGEMENT AND CONTROL OF COMMUNITY COMMON AREA... 25 4.01 Management Body 25 4.02 Initial Board of Directors 25 (iii) ML:kew 06/06/89 ML971A.0004.0.0 Page 4.03 Transfer of Management and Control to the Master Association 26 4.04 Powers and Duties Generally 26 4.05 Use of Common Funds 26 (a) Utilities 27 (b) Community Common Area Maintenance, Repair and Operations.. 27 (c) Supplies; Tools 27 (d) Insurance and Indemnification 27 (e) Miscellaneous Services 28 (f) Accounting and Legal 28 (g) Fidelity Bonds 28 (h) Taxes; Assessments; License Fees 28 (i) Budgets and Financial Statements 28 (j) Ownership Interests Acquired by the Master Association 31 (k) Managing Agent; Contract Limitations.. 31 4.06 Delegation of Powers 32 4.07 Financial Records and Accounts; Inspection 32 4.08 Limitation of Liability 33 4.09 Indemnification 33 4.10 Limited Powers of Attorney to Board of Directors 33 5. ASSESSMENTS; COMMON FUNDS 34 5.01 Regular Assessments 34 (a) Regular Assessments 34 (b) Assessment Roll 36 (c) Failure to Make Estimate 36 (d) Commencement of Regular Assessments... 36 5.02 Special Assessments 37 (a) Damage to Master Common Area 38 (b) Other Special Assessments Authorized by this Declaration 38 (c) Limitations on Special Assessments.... 38 (d) Notice of Special Assessments; Time of Payment 38 5.03 Delinquent Assessments 39 5.04 Liability for Assessments 39 5.05 No Offsets 39 6. MAINTENANCE OF COMMON FUNDS; ENFORCEMENT OF ASSESSMENT LIENS 39 6.01 Deposit; Bank Account 39 (iv) ML:kew 06/06/89 ML971A.0005.0.0 Page 6.02 Commingling; Separate Reserve Accounts 40 6.03 Enforcement of Liens 41 6.04 Enforcement by Suit 42 6.05 Additional Remedies 43 6.06 Waiver of Homestead Exemption 43 7. RESPONSIBILITY FOR MAINTENANCE AND REPAIR 43 7.01 Maintenance and Repair by Master Association 43 7.02 Maintenance and Repair of Individual Projects 45 7.03 Maintenance District 45 7.04 Owner Failure to Maintain 45 7.05 Private Street Maintenance to City Standards 47 7.06 Storm Drain Maintenance 47 7.07 Sewer Facilities Maintenance 47 7.08 Emergency Repairs 47 8. ARCHITECTURAL CONTROL COMMITTEE 48 8.01 Organization and Membership 48 8.02 Resignation; Vacancies; Term of Office 49 8.03 Duties; Committee Rules; Approvals 49 8.04 Meetings of the Committee 50 8.05 No Waiver 51 8.06 Implementation of Approved Regulated Improvements 51 8.07 Inspection of Work 51 8.08 Owner's Failure to Complete Work 52 8.09 Estoppel Certificates; Mortgages 53 8.10 Preliminary Approvals 53 8.11 Compensation of Members of Committee 53 8.12 Non-Liability of Committee Members 54 8.13 Builder Compliance Procedure 54 9. PROTECTION OF LENDERS 54 9.01 Notice to Association 54 9.02 Notification of Mortgagees 54 9.03 Subordination of Assessment Liens 55 9.04 Prior Approvals 55 9.05 Books, Records; Annual Statement 56 9.06 Reserves for Replacements 56 9.07 Taxes, Assessments and Charges 56 (V) ML:kew 06/06/89 ML971A.0006.0.0 Page 9.08 No Priority Over Mortgages 56 9.09 Professional Management 57 9.10 Amendments to Declaration 57 9.11 Effect of Breach 57 9.12 Notice of Condemnation, Damage and Meetings 57 9.13 Conflict 57 9.14 Extension of Lender Protections to Other Mortgagees 58 10. CAPITAL IMPROVEMENTS TO COMMUNITY COMMON AREA 58 11. ADDITIONAL EASEMENTS, RESERVATIONS AND COVENANTS.. 59 11.01 Utility Easements 59 11.02 Cable Television or Antenna System 61 11.03 Reservation of Oil and Mineral Rights 61 11.04 Community Common Area Easements 61 11.05 Drainage Easements 62 11.06 Easements for Completion, Marketing and Sale 62 11.07 Establislriment of Easements 63 11.08 Easement for the Benefit of Golf Course.... 63 11.09 Assessment District Financing 64 12. INSURANCE 64 12.01 Types of Insurance 64 (A) Property 64 (B) Public Liability 66 (C) Workmen's Compensation 67 12.02 Insurance on Individual Projects or Separate Ownership Interests 67 12.03 Additional Insurance and Bonds 68 12.04 Choice of Contractor 68 12.05 Choice of Insurance Company 68 12.06 Expenses of Collecting Insurance Proceeds 68 12.07 Insurance Requirements for Individual Projects and Ownership Units Within Individual Projects 68 (vi) ML:kew 06/06/89 ML971A.0007.0.0 Page 13. DAMAGE OR DESTRUCTION TO COMMON AREA; REBUILDING 69 13.01 Determination and Collection of Insurance; Bids; Commencement of Repair 69 13.02 Insurance Proceeds Sufficient to Rebuild... 70 13.03 Insurance Proceeds Within Eighty-Five Percent of Being Sufficient to Rebuild 70 13.04 Insurance Proceeds Less Than Eighty-Five Percent of an Amount Needed to Rebuild 71 13.05 Duties of Board During Reconstruction 71 13.06 Determination Not to Rebuild 71 14. EMINENT DOMAIN 72 15. REMEDIES FOR BREACH OR DEFAULT 72 15.01 Remedy at Law Inadequate 72 15.02 Costs and Attorneys' Fees 73 15.03 Cumulative Remedies 73 15.04 Failure Not a Waiver 73 15.05 Suspension of Voting Rights 73 15.06 Disputes, Determination by the Board 74 15.07 Enforcement of Bonded Obligations 75 15.08 Enforcement by City 76 15.09 Indemnification 77 16. AMENDMENTS 78 16.01 Procedure 78 16.02 Amendment by Declarant 79 16.03 Amendment Affecting Obligation to Maintain Common Area 79 16.04 Amendment to Eliminate Easements 79 17. NOTICES 80 18. TERM 81 (vii) ML:kew 06/06/89 ML971A.0008.0.0 Pase 19. ANNEXATION OF ADDITIONAL PROPERTY 8 2 19.01 Annexation of Additional Property 82 19.02 Annexation Pursuant to Approval 8 2 19.03 Supplementary Declaration 83 19.04 Community Cominon Area 8 3 19.05 De-annexation 83 20. GENERAL PROVISIONS; INTERPRETATION 84 SIGNATURE PAGE 85 ACKNOWLEDGEMENT 8 6 EXHIBITS Exhibit A Legal Description of Overall Property Exhibit B - Description and Map of Planning Areas Exhibit C - Planning Areas 1 Through 16, Inclusive (Sometimes Referred to as the "Mapped Area" or "Phase I") Exhibit D - Legal Description of Overall Property Subject to Annexation Exhibit E DRE Phase 1 Exhibit F Exhibit F-1 Master Maintenance Plan Master Maintenance Plan - Poinsettia Lane Slopes Exhibit G - Trail System Exhibit H Schedule of Acreage of Lots Prior to Close of Escrow for Sale of Lots Pursuant to a Public Report Exhibit I -Builder Architectural Control Approval (viii) ML:kew 06/06/89 ML971.OOOl.0.0 MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR AVIARA This Master Declaration of Covenants, Conditions and Restrictions for Aviara, formerly known as the Pacific Rim Country Club and Resort (the "Master Declaration" or "Declaration") executed as of this day of , 1989, by Aviara Land Associates Limited Partnership ("Declarant") is made with reference to the following: RECITALS A. Declarant is the fee owner of all that certain real property (the "Overall Property") located within Zone 19 of the City of Carlsbad, California commonly referred to as "Aviara" and more particularly described on Exhibit "A" attached hereto. B. Declarant proposes to cause the Overall Prop- erty to be developed in phases in conformance with, among other land use approvals, that certain Local Facilities Man- agement Plan for Zone 19 (the "LFMP") which was approved by the City of Carlsbad (the "City") pursuant to the Carlsbad Growth Management Program, Title 21, Chapter 21.90 of the Carlsbad Municipal Code, and that certain Master Plan for Aviara (the "Master Plan") which was approved by the City Planning Commission on November 4, 1987 (under the former name for the Project) pursuant to Planning Commission Reso- lution 2594. Copies of the LFMP and the Master Plan are on file with the City Planning Department and when reference thereto is made in this Declaration or the context hereof requires, the LFMP and the Master Plan shall be deemed incorporated herein. C. Pursuant to the Master Plan, thirty-two (32) separate Planning Areas ("Planning Areas") have been estab- lished within the Overall Property. Development within each Planning Area shall be in conformance with the Development Standards ("Development Standards") for such Planning Area as set forth in the Master Plan. A description and map of the Planning Areas is attached hereto as Exhibit "B". D. By this Declaration, Declarant intends, among other matters, to establish a common plan to coordinate and ML:kew 06/06/89 ML971.0002.0.0 integrate the phased development of the Overall Property and to establish a master community association (the "Master Association") to own, manage and maintain certain private streets, medians, enriched paving and parkway areas, land- scaping, entry features, open space. Trail System, irrigation systems, slopes, RV storage and other improvements (collec- tively hereinafter defined as the "Community Common Area"), now or hereafter located within the various Planning Areas subject to the jurisdiction of the Master Association for the mutual benefit of the Master Association, its Members, and each Individual Project (as hereinafter defined) developed within the various Planning Areas; the mutual benefit of the Declarant and the Owners of such Individual Projects and all Units, Lots, Dwellings, Apartments and improvements now or hereafter located within such Individual Projects; and for the mutual benefit of th'e Merchant Association and each Indi- vidual Homeowner Association created, as required, for any such Individual Project which is developed as a planned unit development, condominium project or other common interest subdivision, as defined in Section 11004.5 of the California Business and Professions Code. E. In order to implement development within the Overall Property, Declarant has recorded or intends to record final subdivision maps ("Final Maps") over those portions of the Overall Property located within Planning Areas 1 through 16, inclusive, so as to create within said Planning Areas the Lots described on Exhibit "C" attached hereto. F. In order to further implement the development. Declarant intends to sell Lots so created to Builders who wish to develop Individual Projects within said Planning Areas in conformance with the LFMP, the Development Standards set forth in the Master Plan, this Master Declaration, and in accordance with such other conditions as may be imposed by the City or other governmental agencies in connection with obtaining additional permits and site specific development approvals for such Individual Projects. NOW, THEREFORE, in order to provide for, among other matters, the phased development of the Aviara Project; the creation of the Master Association to own, operate, manage and maintain the Community Common Area within the Project; and to reserve in the Declarant the authority to annex to Phase 1 of the Project (as hereinafter defined) all or any portion of the remaining Overall Property, DECLARANT DOES HEREBY ESTABLISH AND DECLARE that Phase 1 of the Project and each of the Planning Areas, Individual Projects, Units, Lots, Buildings, Dwellings, and improvements now or hereafter ML:kew 06/06/89 ML971.0003.0. 0 located therein, shall be owned, developed, sold, leased, encumbered, improved, landscaped, maintained, repaired, rented, occupied and used subject to the covenants, condi- tions, restrictions, easements, liens, reservations and other provisions set forth in this Declaration, as the same may be amended from time to time, (collectively hereinafter referred to as "covenants"), all of which are hereby imposed upon Phase 1 of the Project and each Planning Area, Individual Project, Unit, Lot, Dwelling and improvement, now or here- after located within Phase 1, as mutual and beneficial covenants which are intended as and are hereby declared to be covenants running with the land and equitable servitudes upon the land in favor of and for the mutual use and benefit of each Planning Area, Individual Project, Unit, Lot, Dwelling and improvement now or hereafter located within Phase 1, and for the mutual benefit of the Declarant, all subsequent Owners, Mortgagees, tenants and users of all portions of Phase 1 and their respective heirs, successors, representa- tives and assigns, in order to implement the general and common plan described herein, and in the Master Plan, for the phased development of the Overall Property. Said covenants shall be binding upon Phase 1 and upon each Planning Area, Individual Project, Unit, Lot, Building, Dwelling and improvement now or hereafter located therein, and shall inure to the benefit of and be a burden upon all of such property and each portion thereof and each of the Owners, tenants. Mortgagees, and other persons holding, having or acquiring an interest therein. Upon recordation of this Declaration, every deed, lease, mortgage, assignment or other document of conveyance, sale, encumbrance, assignment, lease, sublease or other transfer of all or any portion of the Overall Property or any interest therein, shall contain or incorporate by reference all of the provisions of this Declaration, as the same may be amended from time to time, and if not expressly set forth or referred to in any document or documents which evidence such transfer .said document or documents shall be deemed to contain or incorporate by reference all of the provisions of this Declaration, as the same may be amended from time to time. ARTICLE 1 DEFINITIONS Unless the context otherwise specifies or requires, the following words or phrases when used in this Master Declaration shall have the following meanings: ML:kew 06/06/89 ML971.0004.0.0 1.00 "Access and Utility Plats" shall mean those certain maps and drawings prepared and provided by Declarant to Merchant Builders in connection with each such Builders purchase of a specific Planning Area to delineate, describe and define the location, alignment, obligations and responsi- bilities to construct, maintain and/or set back from sewer, water, storm drain, underground utilities, walls, fencing, slopes, easements and other improvements and features within the Planning Area involved so as to further implement the Master Plan and the Master Maintenance Plan. The Access and Utility Plats as the same are prepared and amended from time to time are by this reference made a part the Master Mainten- ance Plan. 1.01 "Annexation" shall mean and refer to the process described in Article 19 of this Master Declaration by which the balance of the Overall Property described in Exhibit "D" attached hereto (which is not included in DRE Phase 1 described on Exhibit "E" attached hereto) may be annexed to and made a part of the Aviara Project and subject to the of the Master Association. 1.02 "Apartment Area" shall mean and refer to any real property within a Planning Area which is approved for development of Apartment Buildings. 1.03 "Apartment Building" or "Apartment Project" shall mean and refer to buildings containing two or more Apartment Units constructed within an Apartment Area and operated as an apartment project. 1.04 "Apartment Unit" or "Apartment" shall mean and refer to a residential apartment in an Apartment Building. 1.05 "approve", "approval" or "consent" shall mean securing the prior written approval, vote or consent before doing that for which such approval or consent is required. 1.06 "Architectural Control Committee", "Architectural Review Committee" or "Committee" shall mean the committee established pursuant to Article 8 of this Master Declaration and sometimes referred to in the Master Plan as the "Aviara Design Review Board". 1.07 "Articles of Incorporation" or "articles" shall mean the Articles of Incorporation of the Master Association as the same may from time to time be amended. ML:kew 06/06/89 ML971.0005.0.0 1.08 "Assessment" shall mean a charge levied or assessed directly against an Owner and such Owner's Lot, Unit or other Ownership Interest in accordance with the provisions of this Master Declaration which Assessment (whether "Regular" or "Special") shall become the personal obligation of such Owner when such Assessment is entered upon the Assessment Roll and a bill or other notice of such Assessment has been sent to the Owner so assessed. 1.09 "Assessment Roll" shall mean the books and records maintained by the Master Association or its duly authorized representatives in accordance with the provisions of Section 5.01(b) hereof. 1.10 "Board", "Board of Directors" or "Community Board of Directors" may be used interchangeably herein and shall mean the Board of Directors of the Master Association as the same may from time to time be constituted. 1.11 "Builder", "Merchant Builder", "Guest Builder''* or "Developer" may be used interchangeably and shall mean and refer to any Person who purchases from Declarant all or any portion of a Planning Area for the purpose of developing thereon an Individual Project including, without limitation, any Person who purchases the Planning Areas to be developed with the Hotel, the Sports Center and the Golf Course. 1.12 "Bylaws" shall mean the Bylaws of the Master Asso- ciation as the same may from time to time be amended. 1.12.1 "City" shall mean the City of Carlsbad, California. 1.13 "Commercial Area" shall mean and refer to Planning Area 23 designated for commercial development as permitted under the Master Plan. 1.14 "Common Expense", "Community Expense" or "Common Area Expense" may be used interchangeably and shall mean and refer to any and all of the actual and/or estimated expenses, charges and/or costs for the maintenance, repair, replace- ments, reconstruction, landscaping, insurance and such other uses of Common Funds as are authorized by Section 4.05 of this Master Declaration including, without limitation, the payment of taxes upon the Community Common Area and amounts reasonably necessary for reserves for the maintenance and repair thereof. 1.15 "Common Funds" or "Community Funds" may be used interchangeably and shall mean all monies collected or ML:kew 06/06/89 ML971.0006.0.0 received by and/or due and payable to the Master Association or its duly authorized representatives for use in the maintenance and repair of the Master Common Area including, but not limited to, the proceeds from insurance carried or obtained by the Master Association which are payable to or received by the Master Association. Common Funds collected, held or received by the Master Association or its duly auth- orized representatives, including, but not limited to, any funds held as reserves, shall not for any purpose be deemed funds or income of the Master Association but only funds in the custody of the Master Association and its duly authorized representatives, subject to the use thereof for Common Expenses as provided in this Master Declaration. 1.15.1 "Common Interest Subdivisions" or "common interest subdivisions" shall have the meaning set forth in Section 11004.5 of the California Business and Professions Code and Section 1351(c) of the California Civil Code. 1.16 "Community Common Area", "Master Common Area" or "Common Area" may be used interchangeably and shall mean and refer to all real property and the improvements situated thereon owned by, leased to or under an easement in favor of the Master Association including, without limitation. Private Streets (other than any gated Private Street), private util- ities, private parks, open space. Trail System, irrigation systems, any community cable, master antenna or satellite system, the RV Site, slopes owned by the Master Association, and Project Entries. Declarant shall convey the Community Common Area located in Phase 1 to the Master Association free of all liens and encumbrances except (a) current real prop- erty taxes (which shall be prorated as of the date of con- veyance), (b) those now or hereafter created by the Mello-Roos Community Facilities Act of 1982 formed pursuant to Government Code Section 53311, et seq., or any successor statute, (c) facilities benefit assessment districts and other assessment districts for purposes of maintenance or funding of any onsite or offsite facilities or improvements, including, but not limited to, public facilities and project amenities, (d) any nonmonetary title exceptions of record, and (e) the covenants, conditions, reservations and restrictions contained in this Declaration. 1.17 "Condominium" shall mean a condominium estate as defined in California Civil Code Sections 783 and 1351(f) which is located within an Individual Project or any Phase thereof. ML:kew 06/06/89 ML971.0007.0.0 1.17.1 "Condominium Project" shall mean an Individual Project which is a common interest subdivision consisting of condominiums. 1.18 "Declarant" shall mean and refer to Aviara Land Associates Limited Partnership and shall include those successors and assigns of Declarant who acquire or hold title to all or any part of the Overall Property for purposes of development of the Aviara Community, and are expressly named as a successor declarant in a document executed by Aviara Land Associates Limited Partnership or by a successor declarant, and recorded with the County Recorder for San Diego County assigning the rights and duties of declarant to such successor declarant, in which such successor declarant accepts and assumes the assignment of such rights and duties. A successor declarant sKall also be deemed to include a Mortgagee under a Mortgage securing an obligation from a then-existing declarant encumbering all or any portion of the Overall Property, which beneficiary has acquired any such property by foreclosure, power of sale or deed in lieu of such foreclosure or sale. 1.19 "Dwelling" or "Dwelling Unit" shall mean and refer to a residential dwelling unit, constructed on a Lot together with any garages and other appurtenant structures, and in the case of a Condominium, shall mean all elements of a "unit" conveyed to an Owner as a part of his or her condominium estate as such "unit" is defined on the condominium plan or subdivision map recorded in connection with the Condominium Project within which such "unit" is located. 1.19.1 "Emergency Repairs" or "emergency repairs" shall mean repairs undertaken by the Master Association, or any Sub-Association, pursuant to Section 7.08 by the Owner of a Dwelling Unit which if not made would pose a significant and immediate risk to the health or safety of persons within the Project. 1.20 "Final Map" shall mean a final subdivision map or a parcel map recorded over any portion of the Overall Property pursuant to the California Subdivision Map Act. 1.21 "First Mortgagee" or "first Mortgagee" shall mean any Person holding any Mortgage encumbering a Lot, Unit or other Ownership Interest within the Project which is a first lien on such Lot, Unit or other Ownership Interest. 1.22 "Golf Course" shall mean and refer to the real property within Planning Area 1 together with the clubhouse ML:kew 06/06/89 ML971.0008.0.0 and other improvements now or hereafter located thereon which are maintained and operated as a golf course, golf club, driving range and related facilities. 1.23 "Golf Course Owner" shall mean and refer to the fee owner of the Golf Course and, unless the context otherwise requires, shall also refer to any person operating or managing the Golf Course, if other than such Owner. 1.24 Intentionally Omitted. 1.25 "Individual Project" shall mean any Condominium Project or other common interest subdivision on all or any portion of a Planning Area and shall also mean the Golf Course, the Resort Hotel, the Sports Center and any restaur- ant and any commercial development on a Non-Residential Lot and any Apartment Building. Although not subject to the jurisdiction of a separate Sub-Association Planning Area 3 and 14 shall, where the context requires, be deemed to be an Individual Project. 1.26 "Individual Project Assessments" shall mean and refer to assessments determined pursuant to any Individual Project Declaration which are levied exclusively on Lots or Units contained in an Individual Project. 1.27 "Individual Project Association" "Individual Home- owners Association" or "Sub-Association" may be used inter- changeably and shall mean and refer to (i) the non-profit mutual benefit corporation formed as the governing body for each Individual Project developed in any Planning Area as a common interest subdivision and (ii) the Merchants Associa- tion formed as the governing body for the Non-Residential Areas within the Project. 1.28 "Individual Project Common Area" or "common area" may be used interchangeably herein and shall mean and refer to the area within the boundaries of an Individual Project owned and/or managed by any Sub-Association formed in con- nection therewith, which area includes, without limitation, slopes, open space, walls, entry treatments, structures, lighting, landscaping, drainage, erosion control or other improvements constructed or installed in connection with such Individual Project, the maintenance and repair of which common area shall be the responsibility of such Sub-Association. 1.29 "Individual Project Declaration" shall mean any declaration of covenants, conditions and restrictions which 8 ML:kew 06/06/89 ML971.0009.0.0 may be recorded by a Declarant or any Builder in connection with the development of any Individual Project within the Overall Property. Every Individual Project Declaration shall (i) incorporate by reference the provisions of this Master Declaration, (ii) provide (if such Individual Project is a common interest subdivision) for the establishment of a Sub-Assocation for such Individual Project, the individual members of which shall also be members of the Master Association, (iii) contain such additional covenants, conditions and restrictions as are appropriate for the operation and maintenance of such Individual Project which shall not be inconsistent with this Master Declaration, (iv) be subject to the approval of the City if required in connection with any additional permit, or land use approval required for the development of such Individual Project, and (v) be subject to review and written approval of Declarant so long as Declarant still owns any undeveloped portion of the Overall Property (which approval Declarant shall not unreasonably withhold or delay). 1.30 Intentionally Omitted. 1.31 Intentionally Omitted. 1.32 "Institutional Mortgagee" shall refer to any Mort- gagee which is a bank, savings and loan association, mortgage or insurance company or other entity chartered under federal or state laws, and the federal government and any state, county, city or any agency or political subdivision thereof. 1.33 "Lot" shall mean and refer to any lot created by a Final Map, provided that a lot created as a Private Street or open space shall not (except when included in an acreage computation under Section 2.03) be considered a "Lot" with respect to which voting rights attach. 1.34 Intentionally Omitted 1.35 "Managing Agent" shall mean any management company, or Person as may be employed from time to time by the Master Association to operate and maintain the Community Common Area and perform such other duties and responsibilities as the Board may delegate to such Person. 1.36 "Master Association", "Community Association" or "Association" may be used interchangeably and shall mean the Aviara Master Association, a California non-profit mutual benefit corporation formed by the Declarant as the governing body for the Aviara Project. The members of the Master ML:kew 06/06/89 ML971.0010.0.0 Association shall be each Owner of a Lot, Unit or other Ownership Interest within the Aviara Project which is subject to this Master Declaration and the jurisdiction of the Association including, without limitation, the Declarant (with respect to each Ownership Interest owned by the Declar- ant), each Builder (with respect to each Lot, Unit or other Ownership Interest owned by such Builder whether or not within an Individual Project), the Owner of each Non- Residential Lot, each Residential Acreage Lot and any Apartment Project. The Individual Homeowner Associations and the Merchants Association (all sometimes referred to herein as "Sub-Associations") shall not be Members of the Master Association, but shall be separate and distinct from the Master Association and shall have no voting rights (as an entity) in the affairs of the Master Association, provided, however, that each Owner of a Lot, Unit or other Ownership Interest within any Individual Project which is governed by a Sub-Association shall automatically, upon receiving title to any such Lot, Unit or other Ownership Interest within such Individual Project, become a Member of the Master Association and also automatically become a member of such Sub-Association and shall have all of the rights and be subject to all of the obligations of both such memberships, including, without limitation, the obligation to pay Assessments (both Regular and Special) levied against each such Owner by the Master Association and such Sub-Association. 1.37 Intentionally Omitted. 1.38 "Master Declaration" or "Declaration" may be used interchangeably and shall mean and refer to this Master Declaration of Covenants, Conditions and Restrictions for Aviara, as it may be amended from time to time. 1.38.1 "Master Maintenance Plan" shall mean and include (i) the plan approved by the City Planning Director pursuant to Chapter I, Paragraph H, Section 16, page 23 of the Master Plan and City Planning Resolution 2595, Condition 11, a reduced copy of which is attached hereto as Exhibit "F", (ii) the Access and Utility Plats (prepared for each Planning Area in connection with the acquisition of such Planning Area by a Merchant Builder), (iii) the terms and conditions of the maintenance agreement for drainage across the Golf Course approved by the City attorney pursuant to City PC Resolution 2595, Condition 65, and (iv) the Final Map conditions and easements for view preservation, together with the two and one-half feet height limitation for the preservation of clear space and sight distance at intersections as shown on the Final Maps. 10 ML:kew 06/06/89 ML971.0011.0.0 1.38.2 "Master Plan" is defined and described in Para- graphs B and C of the Recitals to this Declaration. The Master Plan constitutes the zoning for the Overall Property and is subject to comprehensive review by the City staff every four (4) years or more frequently at the direction of the City Council. 1.38.3 "Merchants Association" shall mean the Aviara Resort and Merchants Association, a non-profit mutual benefit corporation, the members of which are the Owners of the Resort Hotel (Planning Area 2), the Golf Course (Planning Area 1), the Sports Center (Planning Area 10), the Restaurant Area (Planning Area 11), and the Commercial Area (Planning Area 23). 1.39 "Mortgage" shall mean any duly recorded contract by which any Lot, Unit or other Ownership Interest is encumbered to secure the performance of an act or obligation. "Mort- gagor" shall mean the Owner of a Lot, Unit or other Ownership Interest encumbered by a Mortgage. As used herein, the word "Mortgage" shall include a deed of trust. 1.40 "Mortgagee" shall mean the record holder of a beneficial interest under a Mortgage. As used herein, the word "Mortgagee" shall include the beneficiary under a deed of trust. 1.41 "Non-Residential Areas" or "Non-Residential Lot" may be used interchangeably and shall mean and refer to the Golf Course (Planning Area 1), the Hotel Resort (Planning Area 2), the Restaurant Area (Planning Area 4) the Commercial Area (Planning Area 23) and the Sports Complex (Planning Area 5). 1.41.1 "Non-Residential Contribution" is defined in Section 5.01(a) of this Declaration. 1.42 "Overall Property", means all of the real property within Zone 19 of the City of Carlsbad, The legal description of the Overall Property is attached hereto as Exhibit "A". 1.43 "Owner" or "Member" may be used interchangeably and shall mean any person, in which title to a Lot, Unit or other Ownership Interest is vested as shown by the Official Records of the Office of the County Recorder of San Diego County. Declarant and each Builder shall be deemed the Owner of each unsold or unleased Ownership Interest until title thereto is so vested in another Owner. 11 ML:kew 06/06/89 ML971.0012.0.0 1.44 "Ownership Interest" shall mean fee title to each Lot created by recordation of a Final Map and, upon further subdivision of any one or more such Lots (for example, in connection with the recordation of a Final Map and condomin- ium plan for condominium purposes) shall also mean and refer to each individual Unit, parcel or Lot within any Individual Project created as a result of such further subdivision. 1.45 "Person" or "person" shall mean individuals, part- nerships, associations, corporations or any other form of business organization or one or more of them as the context may require. 1.46 "Phase I" or the "First Phase" shall mean those portions of the Overall Property within Planning Areas 1 through 16, inclusive, described in the Master Plan and located within the boundaries of the City of Carlsbad Tracts 85-35 Aviara Phase I - Units A through D, inclusive. 1.46.1 "Phase 1" or "DRE Phase 1" shall mean those por- tions of the Overall Property (including Lots and Master Common Area)' described on Exhibit "E" attached hereto, which initially constitute the Project and with respect to which Regular Assessments shall commence on the first day of the month next following the close of escrow for the first sale of a Lot, Unit or other Ownership Interest therein under the authority of a public report. 1.46.2 "Phase" or "phase" (i) when referring to the Aviara Project which is subject to the jurisdiction of the Master Association shall mean DRE Phase 1 and all those portions of the Overall Property which have been annexed to and made a part of the Project and (ii) when referring to any portion of an Individual Project containing Lots or Units shall mean the initial development of Lots or Units within such Individual Project which are subject to the jurisdiction of any Sub-Association formed in connection with such Individual Project and any portion of such Individual Project which may thereafter be annexed to, and become a part of such Individual Project and subject to the jurisdiction of the Sub-Association created in connection therewith. 1.47 "Private Street" shall mean any portion of the Project designated on a Final Map as a private street, or a street dedicated to but not accepted by the City as shown on the title sheet for such Final Map, together with all paved surfaces thereof and all curbs, gutters, slopes, drains, and any medians, entry treatment, signage, lighting, landscaping, irrigation or other improvements made to or installed within 12 ML:kew 06/06/89 ML971.0013.0.0 the right-of-way for such street. Private Streets are the Individual Project Common Area of the Individual Project in which they are located and the cleaning, maintenance and repair of same shall be the obligation of the Builder of and thereafter the Sub-Association for such Individual Project. 1.48 "Project" or "Aviara Project" may be used inter- changeably and shall mean and refer to all property and improvements contained within DRE Phase 1 as more particu- larly described on Exhibit "E" attached hereto, together with any property and improvements subsequently annexed to and made a part of the Project and subject to the jurisdiction of the Master Association. 1.48.1 "Project Entries" or "Entry Treatments" shall mean all those improvements, walls, gates, fencing, signage, land- scaping, trees, streetscapes, enriched paving, monuments, landmarks, lighting, tile, logos, special materials and architectural features located, designed and constructed within the Project in accordance with and as described in the Master Plan which are intended to create, establish, main- tain, distinguish, represent and enhance the value and high level of quality, character, visual appearance and reputation of the Aviara Project and all of the Individual Projects, Lots and Dwellings located within the Project. 1.49 "Public Street" shall mean any street, paving, curb, gutter, or other improvement of any type located within the right of way of any street shown on a Final Map as dedi- cated to and accepted by the City (or if rejected is later accepted by the City) the cleaning, maintenance and repair of which is performed by the City except any medians, land- scaping, irrigation, slopes, lighting, signage or other improvements, the obligation for the cleaning, maintenance and repair of which has been imposed upon the Master Asso- ciation pursuant to the LFMP, the Master Plan or any condi- tion imposed in connection with any land use or development approval for the Project. In the event said obligation to clean, maintain and repair is imposed on or in connection with the development of an Individual Project, said obliga- tion shall be the responsibility of the Builder therefor and thereafter the Sub-Association for such Individual Project. 1.49.1 "Recreational Vehicle Site", "RV storage area" or "RV Site" shall mean an area within the Overall Property selected by Declarant and approved by the City for operation and maintenance of an RV storage area. 13 ML:kew 06/06/89 ML971.0014.0.0 1.50 "Regular Assessment" shall mean an Assessment levied against an Owner (including, without limitation, each Builder and Owner of any Non-Residential Lot) and his or her Ownership Interest for maintenance, repair or other Community Expense in accordance with Section 5.01 hereof. 1.51 "Regulated Improvement" shall mean any construc- tion, improvement, or work, the making of which requires the prior written Approval of the Architectural Control Committee, as more particularly set forth in Article 8 hereof. 1.52 "Residential Acreage Lot" shall mean a Lot within a Planning Area which has been designated for residential use, but for which (i) the density and type of such residential use (whether condominium or apartment) has not yet been established or (ii) is an Apartment Area or Apartment Project. 1.53 "Resort Hotel" or "Hotel" shall mean and refer to the real property and improvements now or hereafter located within Planning Area 2 which are maintained and operated as a hotel complex and related facilities open to the public. 1.54 "Resort Hotel Owner" or "Hotel Owner" shall mean and refer to the fee owner of the Resort Hotel and, unless the context otherwise requires, shall also refer to any Person engaged to manage and operate the Hotel if other than such Owner. 1.54.1 "Site Development Plan" shall mean the applica- tions, plans, drawings and documents required to be submitted for review by the City's Planning Commission (and City Council if required) for site specific development approvals and per- mits required for an Individual Project. 1.55 "Special Assessment" shall mean an Assessment levied in accordance with Section 5.02 hereof. 1.56 "Sports Complex" or "Sports Center" may be used interchangeably and shall mean and refer to the real property within Planning Area 10, together with the improvements now or hereafter developed thereon. 1.57 "Supplemental Declaration", "Supplemental Annex- ation Declaration" or "Annexation Declaration" shall mean and refer to a declaration or similar instrument annexing to the Aviara Project additional portions of the Overall Property as provided in Article 19 and, with respect to any Individual Project, shall mean and refer to a Declaration or similar 14 ML:kew 06/06/89 ML971.0015.0.0 instrument annexing a subsequent phase to the initial phase or phases within any such Individual Project. 1.58 "Trail System" shall mean that portion of the pedestrian circulation system described in Chapter IV of the Master Plan consisting of the Lagoon Nature Trail, the Golf Course Trail, the Oak Preserve Trail, and the Stream and Lake Trail, all as more particularly shown on Exhibit "G" attached hereto, 1.59 "Unit" shall mean and refer to any type of dwelling whether a single family residence, condominium or apartment as such terms are defined in this Master Declaration. 1.59.1 "View Corridors" or "View Preservation Areas" shall mean those areas of the Overall Property shown on the Master Plan and on the Master Maintenance Plan with respect to which the selection and placement of trees and other landscaping and improvements have been restricted so as to preserve views within the Project, as more particularly described in tha Master Maintenance Plan. 1.60 "Water Conservation Improvements" shall mean all pipe, conduit, pumps, if any, valves and other improvements now or hereafter installed within any Planning Area as required by the City as a part of a water system (separate from potable water service for human consumption) for reclamation, irrigation and water conservation purposes. ARTICLE 2 MASTER ASSOCIATION MEMBERSHIP AND VOTING RIGHTS 2.01 Membership. Each Owner (including the Declarant, any Builder and the Owners of the Hotel, Sports Center, Golf Course, Restaurant Area and Commercial Area) shall automa- tically upon becoming an owner of an Ownership Interest within the Overall Property, become a member of the Master Association and.receive and be subject to all of the rights to the privileges, duties and obligations incident to said membership. Said membership shall be appurtenant to and inseparable from each such Ownership Interest and shall be automatically transferred upon any transfer or conveyance of such Ownership Interest. For each member, there shall be on file with the Master Association an address if"different from such member's Unit or Lot address within the Project, and a 15 ML:kew 06/06/89 ML971.0016.0.0 phone number in case of emergency, all of which shall be kept current by the member. Each Individual Association, of which such Owner is also a member, shall at all times provide such information to the Master Association. 2.02 Transfer. Master Association membership held by each Owner shall not be transferred, pledged or alienated in any way, except upon conveyance or encumbrance of such member's Ownership Interest and then only to the transferee of such Ownership Interest or the Mortgagee acquiring the same through foreclosure or deed in lieu of foreclosure. Any attempt to make a prohibited transfer is void and will not be reflected on the books and records of the Master Association. 2.03 Voting Rights. Contemporaneously with the com- mencement of Regular Ass'essments by the Master Association, the voting power residing in the members of the Master Asso- ciation shall be as follows: A. Class A Votes (i) Each Owner (including a Builder) of a Lot or Unit in an Individual Project for which Reg- ular Assessments (by the Master Association and the Sub-Association for such Individual Project) have commenced in accordance with Section 2792.16(f)(1) of the California Code of Regulations shall have the right (through a delegate in the case of a Sub-Association selected by vote of such Owners at a meeting of such Sub-Association), to cast at a meeting of the Master Association one (1) vote for each Lot or Unit owned by such Owner within such Individual Project. The exercise of said voting power may be in a block or otherwise as set forth in written instructions to such dele- gate, a copy of which instructions shall be delivered to the person designated to act as the Secretary of the Master Association presid- ing at such meeting of the Master Association prior to voting on any matter with respect to which such Owners' votes are to be cast. (ii) Each Builder (in addition to its participation in the votes cast pursuant to subparagraph A(i) above) shall have the following votes on matters put to a vote at a meeting of the Master Association: 16 ML:kew 06/06/89 ML971.0017.0.0 (a) One (1) vote for each Lot or Unit within any portion or Phase of an Individual Project owned by such Builder which has not yet been annexed and made subject to the jurisdiction of the Sub-Association created for such Individual Project. (b) One (1) vote for each acre contained within an Apartment Area and for each Residential Acreage Lot owned by such Builder for which the density (in terms of separate Lots or Units) has not yet been established by a Final Map (includ- ing without limitation, a Final Map for condominium purposes), and upon recorda- tion of such a Final Map (the recordation of which must be approved in writing by Declarant) shall have one (1) vote for each separate Lot and each Unit (in any phase of a Condominium Project with respect to which an escrow for the sale of a Unit has closed) developed on such Residential Acreage Lot. (iii) Each Owner (including a Builder) owning a Lot in any Planning Area developed for residential purposes (which is not a part of a common interest subdivision or an Apartment Project) shall be entitled to one (1) vote for each such Lot for which Regular Assessments for the Master Association have commenced, and each such Owner shall have the right, but not the obli- gation, to exercise such vote through a dele- gate selected by such Owner and the other Owners of Lots within such Planning Area wishing to be so represented by a delegate, provided that a copy of the instructions to such delegate or representative must be signed by the Owners whose votes are to be cast by such delegate or representative and delivered to the person designated to act as the Secre- tary of the Master Association at any meeting at which their votes are to be cast. (iv) Each Owner (if other than the Declarant), which is subject to the Non-Residential Con- tribution shall have that number of Class A votes attributable to its Ownership Interest as is equal to the product derived by 17 ML:kew 06/06/89 ML971.0018.0.0 multiplying its respective percentage of the Master Association's budget by the total number of Class A votes held by all Owners not subject to the Non-Residential Contribution. B. Class B Votes Until "conversion" to Class A Votes as provided in Section 2.04, the Declarant shall have the following votes at meetings of the Master Association: (a) Three (3) votes for each Residential Lot owned by the Declarant. (b) Three (3) votes for each acre contained within each Non-Residential Lot owned by Declarant (other than the Golf Course). (c) Three (3) votes for each acre contained within each Residential Acreage Lot for which the density thereof (in terms of Lots or Units) has not yet been established by a Final Map (including without limitation a Final Map for condominium purposes), and upon recordation of such a Final Map by Declarant, Declarant shall have three (3) votes for each separate Lot created within such Residential Acreage Lot and three (3) votes for each Acre within any portion of such Residential Acreage Lot devel- oped as a Condominium Project, which portion has not yet been annexed to and made subject to the jurisdiction of the Sub-Association for such Condominium Project. (d) If the Declarant is the Owner of any of the following Non-Residential Areas, the Declarant shall have, until the "conversion" described in Section 2.04 that number of Class B votes as is set forth opposite the Non-Residential Areas below: The Golf Course - Six (6) Class B Votes The Hotel - Fifteen (15) Class B Votes The Sports Center - Three (3) Class B Votes The Restaurant Area - Three (3) Class B Votes The Commercial Area - Nine (9) Class B Votes 2.04. Conversion of Votes to One Class All Class B votes shall convert to Class A votes (1) during any period 18 ML:kew 06/06/89 ML971.0019.0.0 that the total of all Class A votes then outstanding is equal to or exceeds the total of all Class B votes then outstanding and (2) irreversibly on the first to occur of the following: (i) fifteen (15) years from the date of the original issuance of the most recent final subdivision public report for any portion of an Indi- vidual Project developed as a common interest subdivision, or (ii) the fifteenth (15th) anniversary of the original issuance of the final sub- division public report for the first Individual Project developed as a common interest subdivision. Wherever in this Master Declaration a reference is made to any action, decision or approval which must be determined by a vote or written assent of the Owners, such vote or written assent shall mean a vote or written assent of the Owners at or in connection with a meeting of the Master Association, which vote shall be taken in accordance with the following procedure: (1) The vote or written assent of a bare majority of the Class B voting power, as well as the vote or written assent of the prescribed majority of the Class A voting power, or, (2) If a conversion of the Class B votes to Class A votes has occurred, tempo- rarily (and is in effect at the time such vote is taken) or irreversibly, then by the vote or written assent of a bare majority of the total voting power of the Association, as well as the vote or written assent of the prescribed majority of the total voting power of the Members other than the Declarant. With the exception of any vote taken pursuant to Sections 4.02 (to assure the right of Members excluding the Declarant to elect at least one member of the Board of Directors), 11.06 (for the extension of easements for marketing and sales), and 15.07 (enforcement of bonded obligations) the use of the 19 ML:kew 06/06/89 ML971.0020.0.0 words "other than the Declarant", "excluding the Declarant" are not intended and shall not preclude the Declarant from casting the number of votes at any time attributable to each Lot, Unit or Ownership Interest owned by Declarant provided such votes are cast in compliance with the procedures set forth in this Section. ARTICLE 3 GENERAL USE RESTRICTIONS In addition to the Design Guidelines and Development Standards set forth in the Master Plan to which all devel- opment within the Project must conform, the following use restrictions and covenants shall apply to all portions of the Aviara Project: 3.01 Antennae. No wires, antennae, satellite dishes or similar equipment may be placed or maintained above the ' surface of the ground within any Individual Project or any location within the Project, except that such equipment may, with the prior written consent of the Architectural Control Committee, be installed in connection with the Hotel, the Golf Course, Sports Complex, the Commercial Area or the Restaurant Area subject to such screening or other conditions as may be imposed upon such installation by the Architectural Control Committee. 3.01.1 Cable TV. Installation, operation, maintenance and repair of cable television equipment, conduit and improve- ments shall require the prior written consent of the Declarant (and if required, the City). 3.02 Children and Guests. Each Owner shall be respon- sible to the Master Association for the conduct and behavior of guests and children using, residing with or visiting such Owner and/or for any injury or damage to persons or property caused by such guest or children. 3.03 Fires. There shall be no burning fires within the Project except fires contained in fireplaces within individ- ually owned Dwellings or Buildings and barbecue fires in receptacles adequately designed for such purposes. 3.04 Grading. There shall be no alteration of landforms in, removal of registration from or installation or construc- tion of any structures or improvements of any kind in or on the Community Common Areas within the Project or any changes 20 ML:kew 06/06/89 ML971.0021.0.0 or alterations to drainage or drainage patterns, erosion control, desiltation (and any equipment to monitor desilta- tion) or other improvements in the Overall Property or to the exterior appearance of any improvements within the Community Common Area without the prior written approval of the Architectural Committee. 3.04.1 Landscaping Removal. There shall be no removal of landscape material which visually buffer the Project from the surrounding areas to the West and South. Such landscaping shall be maintained in a healthy and thriving condition. This is a condition of the California Coastal Commission. 3.05. No Temporary Structures. Except for such temporary structures or items as may be placed within the Project (i) by Declarant in connection with development, sale or leasing of improvements within the Project, (ii) by a Builder in connection with the development, sale or leasing of Lots or Units within an Individual Project in conformity with this Declaration and the Master Plan, and (iii) as may be reasonably required in connection with the construction or reconstruction of a Dwelling or other Regulated Improvement on a single family Lot by an Individual Owner pursuant to the approval of the Architectural Control Committee, no temporary buildings, trailers or structures shall be placed on any portion of the Project. 3.06 Nuisance. No obnoxious, offensive or illegal activity shall be carried on upon any portion of the Project nor shall anything be done or placed within the Project which is or may become a nuisance or cause unreasonable disturbance or annoyance to other persons within the Project or creates a risk which is uninsurable or beyond the extended coverage insurance customarily obtained for residential projects. The landing of golfballs on Lots adjacent to the Golf Course and damage or injury customarily associated with such activity and/or commonly arising out of the proximity of golf course play adjacent to residential areas (easements for which are provided in Section 11.08 hereof) shall not be deemed or constitute a violation of this Section. 3.07 Oil and Mineral Operations. No oil drilling, mining or similar activity shall be permitted upon or within any portion of the Project. 3.08 Pets. No animals, livestock, or poultry of any kind shall be raised, bred, maintained or kept within the Project except that domestic dogs, cats and other household pets may be kept within Individual Projects (provided they 21 ML:kew 06/06/89 ML971.0022.0.0 are not kept, bred, raised or maintained for any commercial purpose and are not in violation of any City ordinance or other regulation imposed by a Builder of an Individual Project). The owner of any pet within the Overall Property shall be responsible for any damage or injury caused by such pet. 3.08.1 Private Streets. No Owner of a Lot, Unit or other Ownership Interest shall use or permit the use of any Private Street in a manner which destroys or unreasonably damages the streets or streetlights located within or adjacent to any Private Street or in a manner which obstructs or unreasonably interferes with the normal and customary usage and enjoyment of such facilities. Further, no Owner of a Lot, Unit or other Ownership Interest shall cause or permit any vehicle to be operated or parked wi'thin any Private Street except in accordance with the following rules and regulations: (a) No vehicle shall be operated in an unsafe manner; (b) No vehicle shall be parked in a manner which blocks a driveway approach to any Lot or Dwelling Unit; and (c) No vehicle shall be parked on any Private Street for a period in excess of 72 consec- utive hours. 3.08.2 Private Sewer Easements. No Owner of a Lot, Unit or other Ownership Interest shall cause or permit any structure, plant, material, tree, or thing to be placed within the private sewer easements which may damage or interfere with the operation and maintenance of the underground sewer facilities located within such easements. 3.08.3 Storm Drain Easements. No Owner of a Lot, Unit or other Ownership Interest shall cause or permit any structure, plant, material, tree or thing to be placed within the storm drainage easements which may damage or interfere with or change the direction which can reasonably be expected to occur within such easements. 3.09 Power Tools. The operation of power tools and other similar equipment within the Overall Project shall be subject to such rules and regulations as the Board of Directors may adopt from time to time including, without limitation, rules with respect to permitted hours for the operation of same. 22 ML:kew 06/06/89 ML971.0023.0.0 3.10 Residential. Except for use and development per- mitted in connection with the Golf Course, Hotel Site, Sports Center, the Restaurant Area and the Commercial Area as set forth in the Master Plan, the Aviara Project shall be limited to use for residential purposes. Neither an Owners' rental or lease for long term, short term or transient occupancy of an Ownership Interest through his or her own effort or through the efforts of a rental agent or realtor engaged by such Owner shall constitute a violation of this Section. 3.10.1 Roof Appurtenance. All roof appurtenances, including air conditioners, shall be architecturally integrated and concealed from view and the sound buffered from adjacent properties and streets pursuant to the City's Banking Department Policy No. 80-6, to the satisfaction of the City's Directors of "Planning and Building. 3.11 Rules and Regulations. The Board of Directors shall have the right to adopt and/or amend from time to time uniform rules and regulations for the use and enjoyment of the Community Common Area. 3.12 Signs. No sign, notice or advertising of any kind shall be displayed to public view on or from any portion of the Individual Projects, provided that an Owner of an indi- vidual Dwelling may display a sign advertising its avail- ability for sale or lease so long as such sign complies with reasonable standards promulgated by the Architectural Committee as to size, color, shape and other qualifications for such signs. 3.12.1 Trash Receptacle Area. Trash receptacle areas shall be enclosed by a six-foot masonry wall with gates pursuant to City standards. The location of such areas shall be approved by the City Planning Director. 3.13 Unsightly Items. All rubbish, debris and other unsightly materials of any kind shall be regularly removed from the Project and shall not be allowed to accumulate thereon. All clotheslines, refuse containers, and wood piles shall be prohibited unless obscured from view of adjoining Lots or Units and the Common Area. 3.14 Vehicles. No trailer, camper, boat, "RV" or similar vehicle or equipment shall be stored within the Public or Private Streets, nor on any driveway or parking area within an Individual Project Common Area nor on any driveway on any Lot. No Owner and no guest, tenant, agent, licensee or employee of any Owner shall park, leave or 23 ML:kew 06/06/89 ML971.0024.0.0 abandon any vehicle within the Project in such a manner as to impede or prevent ready ingress, egress and/or passage to or from Public or Private Streets, within the Project. The use, storage and parking of all vehicles shall in addition be subject to such rules and regulations as may be adopted from time to time by the Master Association. The Master Associa- tion shall own and contract for the professional operation of the RV Site and parking and storage of RVs shall be limited to the RV Site. Each Sub-Association shall have the authority to enter into Agreements with the operator of the RV Site. Nothing herein shall prevent the individual Owner of a Dwelling from contracting directly with the operator of the RV Site for storage by such Owner of his or her RV or similar vehicle. Each Owner using any such RV Site shall indemnify and hold harmless the Declarant and the Master Association and their respective Directors, officers, partners, agents, employees and representatives from and against any and all damage, loss or injury to persons or property arising out of the ownership, use and/or storage of an RV within the RV Site. 3.14.1 Protection of View Corridors. Those areas shown in the Master Plan as "Vi.ew Corridors" or areas requiring the selection and placement of trees and other landscaping to preserve views shall be restricted for such use and the obligation for the maintenance and preservation for such use shall be performed and enforced by the Master Association (and/or by the Sub-Associations or the Merchant Builder(s) as provided in the Master Maintenance Plan and the Access and Utility Plats which are part of the Master Maintenance Plan. 3.15 Easements and Exemptions for Declarant. Notwith- standing anything herein contained to the contrary, there are hereby established and reserved to and for the benefit and use of the Declarant, its successors and assigns, together with the right to grant and transfer the same, easements, rights and rights of use, in, over, under, across and through all portions of the Overall Property which are or may from time to time be reasonably necessary for Declarant, its agents, architects, contractors, engineers, employees, sales persons and/or respective agents' employees and/or represen- tatives to grad^, construct, build, develop, landscape and complete all portions of the Project (including, but not limited to, the installation and maintenance of sewer lines, storm drain facilities, water lines, underground utilities, including but not limited to, electrical, gas, telephone and cable TV lines and equipment, street improvements, walls, fences and landscaping, the placement and storage of building materials and equipment, the placement of temporary build- 24 ML:kew 06/06/89 ML971.0025.0.0 ings, trailers and/or structures or equipment) and to adver- tise, show, market, sell and/or lease unsold or unleased Lots, Units or Ownership Interest within the Overall Property. 3.16 Easements and Exceptions for Builders. There are hereby reserved to and for the benefit of such Builder such easements, rights and rights of use in, over and across the Private Streets within the Project as are reasonably neces- sary or required for ingress, egress and access to Lots owned by each Builder for the purposes of developing Indi- vidual Projects as contemplated by and in conformance with the LFMP, the Master Plan, the Access and Utility Plats and this Declaration. No Builder shall, without the prior written consent and joinder by Declarant, apply for any subdivision or resubdivision of any Lot owned by a Builder (except that with notice to the Declarant, a Builder may make minor lot line adjustments which do not create any additional Lots within such Builder's Individual Project or add any portion of any Lot to the Community Common Area or to a Lot owned by another Builder). No Builder shall, without the prior w'ritten consent of Declarant, alter, grade, excavate, divert or in any way impede or interfere with the passage of vehicles on any Private Street outside of the Individual Project being developed by such Builder, or with any drainage pattern, erosion control, desiltation improvements or facilities, gas, water, electrical or other utility lines, lighting, signage or improvements on or within a portion of the Project not owned by such Builder or if owned by such Builder, in a manner prohibited by the LFMP, Master Plan, the Development Standards set forth in the Master Plan, the Access and Util- ity Plats or any other land use entitlement, development approval or permit issued by the City or any other govern- mental jurisdiction including, without limitation, the California Coastal Commission. ARTICLE 4 MANAGEMENT AND CONTROL OF COMMUNITY COMMON AREA 4.01 Management Body. The Board of Directors of the Master Association shall be the "management" or "governing" body of the Master Association and of the Community Common Area of the Project. 4.02 Initial Board of Directors. The initial Board of Directors are the persons named in the Articles of Incorpora- tion of the Master Association (as said Articles may be amended prior to the close of escrow for the sale of the first Ownership Interest in an Individual Project pursuant to 25 ML:kew 06/06/89 ML971.0026.0.0 a final subdivision public report) and any persons who may in accordance with the Bylaws replace any such person prior to the first regular meeting of the Master Association. From and after the first regular meeting of the Master Association held pursuant to Section 4.03, the Board of Directors shall consist of at least one (1) Director elected by the vote of Members (excluding the Declarant and any Builder) and the Merchants Association shall have the right to appoint at least one (1) member of the Board of Directors (if there exists a five member Board) and at least two (2) members of the Board of Directors (if there exists a seven member Board). 4.03 Transfer of Management and Control to the Master Association. Subject to the easements and rights reserved herein for the benefit of the Declarant and other Builders to develop•Individual Projects as described herein and to sell or lease Lots, Units and other Ownership Interests therein, title to that portion of the Community Common Area described in Exhibit "E" attached hereto shall be conveyed to the Master Association on or before the close of escrow for the sale of the first Lot or Unit in an Individual Project pursuant to a final subdivision public report issued by the California Department of Real Estate. Management and control of such Community Common Area shall be transferred to the Master Association at the first regular meeting of the Master Asso- ciation which shall be held within forty-five (45) days after the close of escrow for the sale of fifty-one percent (51%) of the Lots or Units within such Individual Project under the authority of a public report but in no event within six (6) months after the close of escrow for the sale of the first such Lot or Unit within such Individual Project under the authority of a public report. 4.04 Powers and Duties Generally. In addition to the powers of collection and enforcement set forth in Article 6 hereof, (and such other powers as may be exercised by a California non-profit mutual benefit corporation), the Master Association, through its Board of Directors, its officers, employees or other duly authorized agents and representatives may, subject to the provisions of the Articles of Incorpor- ation, the Bylaws and this Declaration, exercise any or all rights and powers enumerated in this Declaration as the same may from time to time be amended. 4.05 Use of Common Funds. The Master Association through its Board of Directors, officers or other duly authorized agents and representatives may, for the benefit of all of the Owners and the Project, provide, perform, cause to be performed. 26 ML:kew 06/06/89 ML971.0027.0.0 maintained, acquired, prepared, contract and/or pay for out of Community Funds all or any of the following: (a) Utilities. Water, sewer, electrical and gas and other necessary utility services for the Community Common Area. (b) Community Common Area Maintenance, Repair and Operations. Maintenance, repair and/or replacement of Community Common Area including, without limitation, landscaping, Entry Treatments, open space. Common Area slopes, walls and fencing (including, without limitation, walls and fencing at the boundary of Lots not subject to the jurisdiction of a Sub-Association), drainage, improvements, irrigation systems, sewer systems, Water Cons'ervation Improvements, desiltation and erosion control improvements, together with any City or other governmentally required landscaping, mainten- ance, repair and/or supervision of the Trail System, the RV Site and any community cable, antenna television or satellite master antenna system, staff and personnel to operate the Architectural Review Committee and to engage such professionals or other consultants as are reasonably necessary to assist the Architectural Review Committee. (c) Supplies; Tools. All supplies, tools and other equipment as are reasonably necessary for use in the maintenance and repairs of the Community Common Area. (d) Insurance and Indemnification. Such policies of personal injury, property damage and other insurance with respect to the Common Area covering such persons, property and risks as are more particularly set forth in Article 12 of this Master Declaration including, without limitation, the professional operation of the RV Site, and City or other governmentally required maintenance, supervision, and/or repair of all portions of the Trail System and any cost and expense required to indemnify the City or any of its officers, boards or commissioners, employees or agents from liability arising out of injury or damage to persons or property determined by a court or through settlement (with the participation or consent of the insurance carriers for the Master Association) after a claim or demand by the City for such indemnifi- cation for injury or damage to persons or property alleged to have been caused by a dangerous condition within Public Streets within the Project or public 27 ML:kew 06/06/89 ML971.0028.0.0 right-of-way adjacent thereto occurring as a result of maintenance, landscaping or repair of Common Area land- scaping, medians or other improvements within or adja- cent to suph Public Streets, public right-of-way con- ducted by or on behalf of the Master Association. (e) Miscellaneous Services. Such other services for the use, enjoyment and protection of the Community Common Area as the Board of Directors may determine from time to time are reasonable, necessary, proper or desir- able to operate the Architectural Review Committee and to engage such professionals or other consultants as are reasonably necessary to assist the Architectural Review Committee. (f) Accounting and Legal. Accounting and legal services and fees for the Master Association, its Board of Directors and its officers, provided that said ser- vices and fees are incurred solely in connection with (i) the management, protection and maintenance of the Common Area, (ii) the performance or enforcement (including the collection of Regular and/or Special Assessments) of the provisions of this Master Declaration, the Bylaws or Articles of Incorporation, or (iii) litigation, arbitration, negotiations and/or adjustments arising out of the damage, destruction, reconstruction, alteration, repair or condemnation of all or any portion of the Common Area. (g) Fidelity Bonds. Such fidelity bond or bonds naming the Board of Directors, the officers of the Master Association, any Managing Agent and/or such other person or persons responsible for handling Community Funds as may be designated by the Board of Directors as "principals" with the Master Association (as trustee or agent for the Members thereof) as the "obligee." (h) Taxes; Assessments; License Fees. Taxes, assessments and/or fees of whatever type duly assessed against all or any portion of the Common Area, which taxes, assessments and/or fees are not separately assessed to individual Owners by the governmental agency or authority making or levying any such tax, assessment and/or fee, including, without limitation, assessments of the type contemplated in Section 11.09 hereof. (i) Budgets and Financial Statements, The cost of preparation and distribution of the following financial information: 28 ML:kew 06/06/89 ML971.0029.0.0 (1) A budget for each fiscal year of the Master Association to be distributed not less than forty-five (45) days and not more than sixty (60) days prior to the beginning of each fiscal year, which budget shall con- tain, among other information deemed pertinent by the Board the following: (A) An estimate of revenue and expenses for the Master Asso- ciation on an accrual basis (including, without limitation, all cost and expenses to be paid for out of Community Funds for maintenance and repair of Com- munity Common Area, (including without limitation all Project Entries to the standards set forth in Exhibits "F" and "G" attached hereto) expenses to purchase and maintain insurance as hereinafter described to pay for the cost of management, accounting and legal services and any assessments or taxes to the extent not levied against Individual Lots, Units or other Ownership Interest within the Project and to pay any other expenditure permitted with the use of Community Funds described in this Declaration including without limitation any bulk billing of Owners for basic cable television service through a provider approved by the Master Association, the rate for which basic service shall be adjusted as additional Units are annexed to the Project); (B) The amount of the total cash reserves of the Master Asso- ciation then currently avail- able for replacement or major repairs of Community Common Area and for contingencies; 29 ML:kew 06/06/89 ML971.0030.0.0 (C) An itemized estimate of the remaining life of, and method of funding to defray the cost of repair, replacement or additions to the major compo- nents of the Community Common Area for which the Master Asso- ciation is responsible; (D) A general statement setting forth the procedures used by the Master Association and its Board of Directors in the cal- culation and establishment of reserves to defray the costs of repair, replacement or addi- tions to the major components of the Community Area and Facilities for which the Master Association is responsible; (2) A balance sheet as of an account- ing date which is the last day of the month closest in time to six (6) months from the date of closing of the escrow for the first sale of a Lot, Unit or other Ownership Interest within any Individual Project, together with an Operating Statement for the period from the date of said first closing to said first accounting date, which shall be distributed to each Owner within sixty (50) days after said accounting date and shall include a schedule of assessments received and receivable identified with respect to each Owner by such Owner's name and by the number or address of the Lot, Unit or other Ownership Interest so assessed. (3) A report (distributed within one hundred twenty (120) days after the close of each fiscal year of the Master Association) consisting of (A) A balance sheet as of the end of each fiscal year" of the Master Association, 30 ML:kew 06/06/89 ML971.0031.0.0 (B) An Operating (Income) Statement for said fiscal year, (C) A Statement of Changes in Financial Position for such fiscal year, and (D) For any fiscal year in which the gross income to the Master Association exceeds $75,000, a copy of the review of said Annual Report prepared in accordance with generally accepted accounting principles by a licensee of the California State Board of Accountancy and if such Report is not prepared by an independent accountant, it shall be accompanied by a certificate of an authorized officer of the Master Association that the statement was prepared from the books and records of the Association without independent audit or review. (4) A statement (distributed within sixty (60) days prior to the beginning of each fiscal year of the Master Asso- ciation) setting forth the Master Association's policies and practices in enforcing its remedies against members for defaults in the payment of Regular and Special Assessments including the recording and fore- closing of liens against Lots, Units or other Ownership Interests of Owners within the Project. (j) Ownership Interests Acquired by the Master Association. The cost to purchase, sell, lease and maintain any Lot, Unit or other Ownership Interest abandoned by its Owner or acquired by the Master Asso- ciation pursuant to the provisions of Section 6.03 of this Declaration. (k) Managing Agent; Contract Limitations. The services of a Managing Agent provided that any contract 31 ML:kew 06/06/89 ML971.0032.0.0 for the services of any Managing Agent (which contract shall provide for termination by either party for cause upon written notice and without cause upon sixty (60) days' written notice) and any other contracts with any other third persons engaged or employed to furnish services for the Community Common Area shall provide for a term not longer than one (1) year, unless a longer term has been approved by a majority of the Owners otherwise entitled to vote (excluding the Declarant after the close of escrow for the sale of the first Lot or Unit in an Individual Project pursuant to a final subdivision public report). The above contract limita- tion does not apply to (i) contracts with a public utility company if the rate charges for material or services are regulated by the Public Utilities Commis- sion, or (ii) prepaid casualty and/or liability insur- ance policies of not to exceed three years' duration provided such policy provides for short rate cancella- tion by the insured. 4.06 Delegation of Powers. The Board of Directors shall have the power and the right (as more particularly described in the Bylaws) to delegate from time to time any of its auth- ority, powers or functions to officers of the Master Associa- tion, committees, employees or agents, including, but not limited to, a Managing Agent for the purpose of facilitating the work of the Board and such delegation may include the authority to enforce the provisions of this Master Declara- tion and the authority to file any notice and take any legal action on behalf of the Owners where the filing or the taking of such action is within the authority of the Board of Directors. 4.07 Financial Records and Accounts; Inspection. The Secretary and/or Treasurer of the Master Association, or a Managing Agent employed by the Master Association, may from time to time be designated by the Board of Directors to keep or cause to be kept detailed records of the actions of the Board of Directors, the officers of the Master Association, minutes of the meetings of the Board and/or the Master Association, and the financial records and books of account of the Master Apsociation, including, without limitation, a listing of all receipts and expenditures of Community Funds, as well as a separate entry for each Regular and Special Assessment levied or charged against each Lot, Unit or other Ownership Interest, the dates when so assessed and when the same is due, the amounts paid thereon, and the balance, if any, of any Assessment remaining unpaid, and the balance sheets, operating statements, reports and audits prepared and 32 ML:kew 06/06/89 ML971.0033.0.0 delivered in accordance with the provisions of Section 4.05(i) hereof. Said books and records may, upon reasonable notice to the Board of Directors or any custodian thereof designated by the Board, be inspected and/or copied by any Owner or his duly authorized representatives at the Owner's expense during regular business hours, for any purpose reasonably related to such Owner's interest as a Member of the Master Association. Any Mortgagee named in any Mortgage encumbering any Lot, Unit or other Ownership Interest shall have the same right of inspection and copying upon written request to the Board therefor. Each Director shall have the absolute right at any reasonable time to inspect all books, records and documents of the Master Association and all property owned or controlled by the Master Association with said right to each Director to include the right to make extracts of and copy documents. The Board of Directors shall establish reasonable rules with respect to the time and manner of notice to be given, the hours and days of the week of when such inspection may be made and the payment of costs of reproducing copies of such books and records. 4.08 Limitation of Liability. Neither the Declarant, the Master Association, nor its Board of Directors (nor any member thereof), nor any officers, employees or agents of any of them, shall be liable for any failure to provide any ser- vice or perform any duty, function or responsibility desig- nated or provided in this Master Declaration to be performed by the same unless such failure is the result of the gross negligence of Declarant, the Master Association, the Board of Directors or any such officers, employees or agents. 4.09 Indemnification. The Master Association shall and does hereby indemnify the Declarant (its agents, employees and/or any trustee), the Board of Directors (and each member thereof), the officers of the Master Association (and each of them), and each of the employees and agents of the Master Association, against all expenses and liabilities, including attorneys' fees reasonably incurred by such Person or Persons in connection with any proceeding (including, but not limited to, arbitration proceedings), to which he or she may be a party, by reason of his or her being or having been a director, officer or employee of the Master Association, except in such cases where he or she is adjudged guilty of gross negligence or bad faith in the performance of his or her duties. 4.10 Limited Powers of Attorney to Board of Directors, Each Owner, by the acceptance and recordation of the deed to his or her Ownership Interest and in consideration of the benefits and rights received as a Member of the Master Asso- 33 ML:kew 06/06/89 ML971.0034.0.0 ciation, does hereby appoint the Board of Directors as its attorneys-in-fact and does hereby further grant and assign to the Board of Directors (as the same may from time to time be constituted) an irrevocable power of attorney, coupled with an interest, to be exercised by at least a majority of the Board of Directors to (i) hold, sell, convey, transfer, quitclaim, encumber, lease or sublease on behalf of all Owners, any Lot, Unit or other Ownership Interest acquired by the Master Association by reason of the abandonment thereof or by reason of the foreclosure of an assessment lien in accordance with Section 6.03 hereof, (ii) enforce the pro- visions of this Master Declaration, (iii) enforce, prosecute, adjust, negotiate, settle and/or defend on behalf of all Owners, as the real party in interest, any action or claim arising out of the damage, destruction, reconstruction, alteration, repair or taking of all or any portion of the Common Area, and (iv) seek, apply for, obtain, execute, acknowledge and/or record any docximents, certificates, permits, licenses and/or instruments as may be reasonably required to permit the Board of Directors to fulfill all of its respective duties and obligations hereunder. Each Owner, by the acceptance and recordation of the deed or lease to his or her Lot, Unit, or other Ownership Interest, does hereby covenant and agree (which covenant and agreement shall be specifically enforceable) promptly upon demand by the Board of Directors therefor, to execute, acknowledge and deliver to tiie Board of Directors from time to time such instriiments and/or documents, in recordable form if necessary, as the Board of Directors may reasonably require to more effectively carry out the provisions of this Section. Notwithstanding anything herein contained to the contrary, any sale of any property owned by the Master Association with an aggregate fair market value equal to more than five percent (5%) of the budget for the Common Expense for the current fiscal year shall (after the close of escrow for the first sale of a Lot or Unit pursuant to a final subdivision public report) require ttie prior approval of a majority of the voting power of the Master Association (excluding the Declarant). ARTICLE 5 ASSESSMENTS; COMMON FUNDS 5.01 Regular Assessment. (a) Regular Assessment. Commencing on September 1, 1989, the total estimate of revenues and expenses for the Master Associ- ation as set forth in budget prepared for each fiscal year for the 34 ML:kew 06/06/89 ML971.0035,0.0 Master Association in conformance with the provisions of Section 4,05(i) hereof, shall be first adjusted by deducting from such total the following: (i) two percent (2%) of said budget which shall be assessed to the Owner of the Golf Course as the Regular Assessment. (ii) five percent (5%) of said budget which shall be assessed to the Owner of the Hotel as the Regular Assessment. (iii) one percent (1%) of said budget which shall be assessed to the Owner of the Sports Center as the Regular Assessment. (iv) one percent (1%) of said budget which shall be assessed to the Owner of the Restaurant Area, as the Regular Assessment. (v) three percent (3%) of said budget which shall be assessed to the Owner of the Commercial Area, as the Regular Assessment. (collectively hereinafter referred to as the "Non-Residential Contribution) and the balance of the total estimated annual Community Common Area expense shall then be divided by the total number of acres of the Overall Property (excluding the Non-Residential Areas) and the quotient of such division allocated and assessed to each Builder and to the Declarant on the basis of the number of acres within each Lot (not subject to any part of the Non-Residential Contributor) owned by the Declarant and each Builder as set forth on Exhibit "H" attached hereto. After the close of escrow for the sale of the first Lot or Unit within an Individual Project (or within the first Phase thereof) under the authority of a public report, the balance of the total estimate of revenue and expenses for the Master Association remaining after deducting the Non- Residential Contribution shall then be divided by the number of Dwelling Units or Lots within each Individual Project (or such Phase as is applicable in the circumstances excluding the Non-Residential Areas) and the quotient of such division shall be allocated to and assessed against each Owner of the Dwelling Units or Lots within such Individual Projects (or Phases thereof) including the Builder thereof with respect to all unsold Dwelling Units or Lots within such Individual Projects (or Phases thereof). Apartment Projects shall be 35 ML:kew 06/06/89 ML971.0036.0.0 assessed on an acreage basis in the same manner as Individual Projects are assessed prior to the first sale of a Lot or Unit under the authority of a public report. The procedure described in the immediately preceding paragraph shall be repeated upon the first close of escrow for the sale of a Lot or Unit in each succeeding Phase of such Individual Project and within all other Individual Projects (or Phases thereof) which are developed as common interest subdivisions. The acreage determined by the Declarant as shown on Exhibit "H" (as the same may be amended) and on any similar exhibit thereafter attached to any Annexation Declaration shall be conclusive and binding upon all persons subject to this Master Declaration, (b) Assessment Roll. That portion of the esti- mated Common Expense assessed against each Owner and his or her Lot, Unit or other Ownership Interest, shall be recorded upon an Assessment Roll which shall be regularly kept and maintained by the the Master Association and available (sub- ject to the provisions of Section 4.07 hereof) for inspection upon reasonable notice during customary business hours by any Owner, a duly authorized representative of such Owner, or a First Mortgagee or Institutional Mortgagee holding a Mortgage encumbering the Ownership Interest of such Owner. Said Assess- ment Roll shall set forth for each Lot, Unit or other Owner- ship Interest (i) the name and address of the Owner thereof, (ii) the acreage contained therein if still owned by Declar- ant or a Builder and not located within any Phase of an Indi- vidual Project with respect to which Regular Assessment of a Sub-Association have not yet commenced, (iii) all Assessments (whether Regular or Special), levied against such Ownership Interest and the Owner thereof, and (iv) the amount of said Assessments paid and unpaid. A certificate executed by any Secretary or Treasurer of the Master Association or any Managing Agent employed by the Master Association setting forth the amount and/or payment of any indebtedness assessed and/or secured by any lien created pursuant to or arising by reason of this Declaration against any Owner and/or his Own- ership Interest shall be conclusive and binding upon the Master Association and the Owner of such Ownership Interest as to the amount of such Assessment or indebtedness as of the date of such certificate, in favor of all persons who rely thereon in good faith. Such a certificate shall be furnished by the Master Association to any Owner and to any First Mort- gagee or Institutional Mortgagee holding a Mortgage encumbering an Ownership Interest upon written request of such Owner or such Mortgagee at a reasonable fee established by and payable to the Master Association to cover the cost of complying with 36 ML:kew 06/06/89 ML971.0037.0.0 such request. (c) Failure to Make Estimate. If, for any fiscal year, the Board shall fail to make an estimate of Community Common Expense as provided in Section 4.05(i), then the last estimate of Common Expense shall be automatically assessed against each Owner, and such Owner's Ownership Interest and installment payments (as hereinafter provided) based upon such estimate shall be payable on the first day of each month. (d) Commencement of Regular Assessments. Regular Assessments against each Lot, Unit or Ownership Interest (including those owned by Declarant) shall begin on the first day of the month immediately following the close of escrow for the sale of the first Lot or Unit within an Individual Project under the authority of a public report, and there- after shall be due and payable in advance to the Master Association by each Owner in equal monthly installments on the first day of each month commencing with the date on which each Owner acquires title to his Ownership Interest prorated to said date (or quarterly or otherwise as determined by the Board); provided, however, that Declarant (and any Builder upon prior written notice to Declarant with a copy of such agreement) shall (i) have the right, but not the obligation, to enter into an agreement with the Master Association (or Sub-Association in the case of a Builder) in a manner per- mitted under Section 2792.10 of Title 10 of the California Administrative Code to extend the time for commencement of Regular Assessments applicable to any one or more Lots (other than for reserves) by subsidization of the costs of maintaining the Community Common Area (or Individual Common Areas in the case of an Individual Project) within any one or more of such Lots and (ii) Declarant (and any Builder may upon prior written notice to Declarant) shall (in addition to such right of subsidization) be exempt from the payment of expenses and reserves directly attributable to improvements within the Community Common Area or within any Individual Project as permitted under and for the period provided in Section 2792.16 of Title 10 of the California Administrative Code; and the use of such subsidization or exemption by Declarant (or any Builder as permitted herein) shall not in any manner diminish with the voting rights of Declarant under this Master Declaration. 5.02 Special Assessments. Special Assessments may be levied against Owners and/or their respective Lots, Units or other Ownership Interests in the following circumstances only: 37 ML:kew 06/06/89 ML971.0038.0.0 (a) Damage to Master Common Area. In the event of any damage to or destruction of any portion of the Master Common Area caused by any grossly negligent or malicious act or omission of any Owner, any member of his family or any of his guests, tenants, agents, licensees or employees, the Master Association shall promptly cause the same to be repaired or replaced and all costs and expenses incurred in connection therewith (to the extent not covered or reduced by insurance proceeds paid to or received by the Master Associ- ation on account of such damage or destruction), shall be assessed and charged solely to and against said Owner and his or her Lot, Unit or other Ownership Interest as a Special Assessment. (b) Other Special Assessments Authorized by this Declaration. Special Assessments may also be levied pursuant to Section 5.03 (delinquency in payment). Article 10 (capital improvements). Section 12.06 (collection of insur- ance proceeds), and Article 13 (reconstruction of Common Area). (c) Limitations on Special Assessments. Notwith- standing anything herein contained to the contrary, (i) Spe- cial Assessments to defray the cost of any action or under- taking on behalf of the Master Association may not, without the vote or written consent of a majority of the Owners (excluding the Declarant after the sale of the first Owner- ship Interest under the authority of a public report) exceed in any fiscal year an aggregate of five percent (5%) of the budgeted gross Community Expenses of the Master Association and (ii) except with respect to a Builder or any other Owner of a Lot, Unit or other Ownership Interest which was or could have been purchased without the authority of a public report. Special Assessments may not be levied by the Master Association against a Member to reimburse the Master Association for costs incurred in bringing such Member and/or such Member's Ownership Interest into compliance with the provisions of this Declaration. (d) Notice of Special Assessments; Time of Payment. All Special Assessments authorized by this Declara- tion shall be recorded on the Assessment Roll, notice thereof mailed or delivered to the appropriate Owner or Owners and said Special Assessment shall thereafter be due and payable in full to the Master Association within thirty (30) days from the mailing or delivery of such Notice or within such extended period as the Board of Directors shall determine to be uniformly applicable to any such Special Assessment. 38 ML:kew 06/06/89 ML971.0039.0.0 5.03 Delinquent Assessments. If any Regular Assessment or Special Assessment (as hereinafter provided) assessed to any Owner is not paid within fifteen (15) days after the same becomes due, the Master Association shall have the right to specially assess such Owner in accordance with the provisions of Section 5.02(b) hereof a late charge in an amount not to exceed five cents ($.05) per month for each One Dollar ($1.00) of the unpaid portion of any such Assessment payment. The Board of Directors shall have the right to post within the Master Common Area the names of any Owners who are more than thirty (30) days delinquent in the payment of any Regular Assessment or Special Assessment. 5.04 Liability for Assessments. Each installment pay- ment of any Regular Assessment, and each lump sum or installment payment of any Special Assessment, together with any late charge applicable thereto shall be the personal obligation of the Owner against whom the same has been assessed and the collection thereof enforced as provided in Article 6 hereof. As is more fully described in Section 9.03 hereof, any person who acquires title to any Lot, Unit or other Ownership Interest through foreclosure as provided in Article 6 hereof shall be liable only for Assessments attributable to the Lot, Unit or other Ownership Interest so acquired which became due and payable after the date of such foreclosure. In the event, however, of a voluntary convey- ance of any Lot, Unit or other Ownership Interest by an Owner, the grantee shall be jointly and severally liable with the grantor for all unpaid Assessments against the latter (whether Regular or Special) up to the time of such convey- ance, without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee in discharge of such obligation. 5.05 No Offsets. All Assessments (whether Regular or Special) shall be payable in the amount specified by the Assessment and no offsets against such amount shall be per- mitted for any reason, including, without limitation, a claim that the Master Association is not properly exercising its duties or maintenance or enforcement. ARTICLE 6 MAINTENANCE OF COMMON FUNDS; ENFORCEMENT OF ASSESSMENT LIENS 6,01 Deposit; Bank Account. All sums collected, received and/or held by the Master Association, its Board or 39 ML:kew 06/06/89 ML971.0040.0.0 its Managing Agent from and/or on behalf of the Owners from Assessments, whether Regular or Special, together with any insurance proceeds and awards from condemnation and any charges attributable to the collection thereof or interest earned thereon shall be promptly deposited by the Board or its designees in such checking or savings accounts in the name of the Master Association, in a bank or saving account in the name of the Master Association, in a bank or savings and loan association selected or approved by the Board of Directors. All sums not expended for the maintenance and repair of the Common Area during the taxable year in which the same was collected shall be held to provide for subsequent maintenance and repair of the Common Area. No part of the net earnings of the Master Association (other than by providing mainten- ance and repair of the Common Area or by a rebate of excess Assessments) shall inure to the benefit of any individual Owner. The Board of Directors, the Managing Agent or such officers of the Master Association as the Board shall designate shall have exclusive control of said accounts and shall be responsible to the Owners for the maintenance o'f accurate records thereof in accordance with Section 4,07 hereof, 6,02 Commingling; Separate Reserve Accounts, Subject to the provisions of Section 6,01 hereof, all sums collected and/or received by the Board of Directors, the Master Asso- ciation or its Managing Agent from and/or on behalf of the Owners from Assessments (whether Regular or Special) or otherwise, together with any charges attributable to the collection thereof or interest earned thereon, may be commingled in a single account or accounts without the need to separately account for each element thereof; provided that any portions thereof collected and/or received as reserves for other than current year expenses or maintenance and operation shall be likewise deposited in an account or accounts which shall also set forth the nature or purpose for which each such reserve account has been established. The Association may make disbursements therefrom only for the capital or reserve expenditures for which such reserve account has been established unless the Board by resolution in the case of an emergency or other special circumstances which in the judgment of the Board reasonably requires the use of funds collected as reserves for one purpose to be used for another purpose authorizes by resolution on a case by case basis an alternative use for such reserve. Any interest earned on any funds deposited in accordance with this and the preceding Section shall, at the option of the Board of Directors, (i) be applied to reduce the estimate of Common Expense for the next fiscal year or (ii) if earned on a 40 ML:kew 06/06/89 ML971.0041.0.0 reserve account, be held to further fund such reserve until required for disbursement for the capital or reserve expenditure for which the same was established. No Owner shall have the right to receive interest on any deposits made in accordance with this Article. Withdrawal of funds from the Association's reserve account shall require the signatures of either (i) two (2) members of the Board of Directors, or (ii) one member of the Board of Directors and an officer of the Association who is not also a member of the Board of Directors. 6.03 Enforcement of Liens. The amount of any one or more delinquent Regular and/or Special Assessments which is or has been assessed in accordance with this Declaration and not paid, together with any late charge attributable thereto and/or other costs (including reasonable attorneys' fees) incurred in the collection thereof, shall be and the same is hereby declared to be a lien, with power of sale, upon any Lot, Unit or other Ownership Interest so assessed when the Master Association causes to be recorded in the Office of the County Record of San Diego County, a Notice of Assessment executed by an authorized representative of the Association, setting forth the amount of the unpaid Assessment and any late charges and/or costs attributable thereto, a description of the Unit, Lot or other Ownership Interest against which the same has been assessed and the name of the Owner thereof. No such Notice of Assessment shall be so recorded until the Master Association or a person designated by the Master Association shall have first mailed to the Owner of such Lot, Unit or other Ownership Interest against which such Assess- ment was assessed at the street address of said Ownership Interest and/or to such Owner at such other place as said Owner may designate in a writing delivered to the Secretary of the Association a Notice of Default in substantially the form prescribed by Section 2924 et seq., of the California Civil Code, together with a demand upon such Owner to pay such delinquent Assessment and any charges and/or costs attribu- table thereto. If the Master Association has not, within thirty (30) days from the mailing of said Notice of Default, received payment in full of all such delinquent Assessment and any charges and/or costs (including reasonable attorneys' fees) attributable thereto and/or incurred in the collection or attempted collection thereof, the Board shall promptly cause said Notice of Assessment to be recorded as provided above. Promptly after the recordation of said Notice of Assessment (unless the lien so created is sooner satisfied or released), the Board shall cause the above mentioned Notice of Default to be recorded in the Office of the San Diego County Recorder and thereafter cause the Lot, Unit or other 41 ML:kew 06/06/89 ML971.0042.0.0 Ownership Interest of the defaulting Owner to be sold in the manner provided in Section 2924 et seq. of the California Civil Code as said Sections may from time to time be amended, or in any other manner permitted by law. At any such fore- closure sale, the Master Association, or its designee, shall have the right to credit bid all or any portion of any delinquent Regular or Special Assessments duly levied against the Ownership Interest of the defaulting Owner, together with all late charges, costs and expenses incurred in connection with such foreclosure including, without limitation, the cost of any trustee sale or similar guarantee, reasonable attor- neys' fees and recording charges and, if the Master Associa- tion shall be the successful bidder, thereafter hold, lease, mortgage and convey the Ownership Interest so acquired as permitted in this Declaration. Upon payment (prior to such a foreclosure) of any delinquent Assessment, together with all late charges, costs and expenses (including, without limita- tion, reasonable attorneys' fees, the cost of any trustee, sale or similar guarantee) attributable thereto and/or incurred in the collection thereof, or other satisfaction thereof, with respect to which a Notice of Assessment has been recorded, the Board shall promptly cause to be recorded a further notice reflecting the satisfaction and the release of the lien thereof. Except as otherwise provided in Article 9 hereof, the lien created as provided herein shall be prior to all other liens recorded subsequent to the recordation of said Notice of Assessment, and unless sooner satisfied and released or the enforcement thereof initiated as herein pro- vided, such lien, once created, shall expire and be of no further force or effect one (1) year from the date of recor- dation of said Notice of Assessment; provided that there shall be excluded from said one (1) year period any period that enforcement of such lien is stayed by order of court or operation of law, and further provided that said one (1) year period may be extended by the Board for not to exceed one (1) additional year by causing to be recorded in the Office of the San Diego County Recorder, a written extension of said Notice of Assessment. 6.04 Enforcement by Suit. The Board may cause a suit at law to be commenced and maintained against an Owner obligated to pay any delinquent Assessment (whether Regular or Special), Any such suit may be brought in the small claims court, the municipal court or the superior court for San Diego County, Any judgment rendered in any such action shall include the amount of any delinquent Assessment or Assess- ments, together with any late charge applicable thereto, costs and attorneys' fees. Any suit brought or maintained under this Section may be brought and maintained without 42 ML:kew 06/06/89 ML971,0043.0 . 0 foreclosing or waiving any lien herein created. 6.05 Additional Remedies. The remedies and liens provided in this Article and the enforcement thereof as herein provided shall be in addition to and not in substitution for any other rights and remedies whichi thie Association may have hereunder or by law. 6.06 Waiver of Homestead Exemption. With respect only to Assessment liens created pursuant to this Article, each Owner does hereby waive, to the fullest extent permitted by law, the benefit of any homestead or exemption or redemption laws of the State of California in effect ac the time any payment of any Assessment, whether Regular or Special, becomes due, payable and/or delinquent as herein provided. Each Owner shall be deemed to be estopped to raise said homestead or other exemption or redemption in any action or proceeding to enforce or foreclose such Assessment liens and such Assessment liens and/or any other obligation of any Owner arising under this Declaration, the Bylaws or Articles of Incorporation of the Association may be enforced as if no homestead were declared or no exemption or right of redemption asserted, as the case may be. ARTICLE 7 RESPONSIBILITY FOR MAINTENANCE AND REPAIR 7.01 Maintenance and Repair by Master Association, Thie Master Association shall be responsible for the maintenance and repair of all of the Community Common Area to the stan- dards described in the Master Maintenance Plan attached hereto as Exhibit "F". Without limiting the generality of the fore- going nor the description of the powers and duties of the Master Association and its Board as set forth in Article 4 of this Declaration, the Master Association shall be required to accomplish the following in such manner and at times as the Board shall prescribe: (a) Clean, maintain and repair all Private Streets, all Project Entries, all signage, medians, lighting, landscaping, irrigation slopes, the Trail System, RV Site and other improvements in or adjacent to all Private Streets (and in or adjacent to any Public Streets within the Project the maintenance of which signage, medians, lighting, landscaping, irrigation and slopes thereof (including without limitation ^aSik slopes adjacent to Alga Road, Batiquitos Drive, Poinsettia Lane and the slopes as shown on Exhibit F-1) has been 43 ML:kew 06/06/89 ML971.0044.0. 0 imposed upon the the Master Association by the terms and provisions of the Master Plan, the LFMP or any conditions of approval of any Final Maps recorded in connection with the development of the Project or any portion thereof), provided, however, that all such cleaning, maintenance and repair of any Private Streets which are gated to provide exclusive use thereof for access for Owners of Lots or Units within an Individual Project served by such Private Street shall be the responsibil- ity of the Sub-Association for such Individual Project. (b) Maintain and repair all slopes (whether manu- factured or natural) and all landscaping and open space within the Community Common Area, together with the Water Conservation Improvements and any and all concrete terrace drains and 'other drainage, erosion control improvements, siltation improvements (including any equipment and/or monitoring program related thereto) and all trails, paths, overlook areas, signage, benches or other improvements or structures located or installed within the Batiquitos Lagoon property located South of the Project as may be required by the City, or any other governmental agency.in connection with the land use approvals for the Project including, without limitation, conditions imposed upon the development Project by the California Coastal Commission. (c) Maintain and/or coordinate with any utility or similar service company as may be required in connection with the installation, maintenance, repair or relocation of all gas lines, electric lines, utility lines and all easements therefor and all connections thereof located in or serving the Community Common Area, the obligations for any portion of which improvements has not been assumed, undertaken or imposed upon any Builder of any Individual Project within the Common Area as a part of the land use or development approvals for such Individual Project or the provisions of this Declaration, There are hereby reserved for and established in favor of the Declarant, its successors and assigns, together with the right to grant or transfer the same to the Master Associa- tion, Builders or others, such easements in, over, under and across all such portions of the Overall Property adjacent to the Master Common Area as are reasonably necessary to dis- charge the maintenance and repair obligations of the Master Association, Builders and others as described herein and such easements as are reasonably required to enter upon, maintain 44 ML:kew 06/06/89 ML971,0045,0.0 and repair fences and walls at the boundary of Lots not subject to jurisdiction of a Sub-Association. 7.02 Maintenance and Repair of Individual Projects. Except as specifically set forth in the Master Maintenance Plan attached hereto as Exhibit "F" and imposed on the Master Association by Section 7.01 above, maintenance and repair of all slopes, trails, drainage and other improvements within the boundaries of the Lots comprising each Individual Project including, without limitation, all Private Streets and private street signs shall be the responsibility of the Builder thereof and the Sub-Association formed in connection with each Individual Project and shall be described with particularity in the Supplemental Declaration for each such Individual Project. 7.03 Maintenance District. Easements are hereby reserved for and established in favor of the Declarant, together with the right to grant the same to the Master Association, Builders or others in, over and across all'those portions of the Overall Property subject to use as a part of the Trail System. The Master Association shall have full power and authority, with the cooperation of the City, to establish or create a District as defined in Section 11.09 hereof for the perpetual maintenance of the Trail System or any other portions of the Community Common Area which are required to be made available for public use. 7.04 Owner Failure to Maintain, In the event any Owner fails to maintain, repair or install improvements on any portion of such Owner's Lot, Unit or other Ownership Interest as required in any Supplemental Declaration for the Individ- ual Project of which such Ownership Interest is a part in accordance with standards established from time to time by the Architectural Control Committee, the Board of Directors shall have the right, to cause such maintenance, repair or installation to be accomplished as follows: (a) Upon finding by the Board of a deficiency in such maintenance, repair or installation or other breach of such obligation, the Board shall give notice of such deficiency, failure or breach to the responsible Owner (and to any Sub-association having jurisdiction over the Individual Project in which such Owner's Dwelling Unit or Lot is located) which notice shall briefly describe such deficiency, failure or breach and set a date for hearing before the Board or a committee selected by the Board for such purpose which hearing shall be held, if 45 ML:kew 06/06/89 ML971.0046.0.0 called, not less than ten (10) nor more than thirty (30) days from the date of the notice. (b) Such hearing shall be conducted according to such rules and procedures as the Board shall adopt and which rules and procedures shall provide the Owner with the right to present oral and written evidence and to confront and cross-examine adverse witnesses. If the Board or committee renders a decision against the responsible Owner, the Board or committee shall further set a date (reasonably related to the nature of the deficiency, failure or breach) by which the deficiency, failure or breach is to be corrected by the responsible Owner. A decision of the committee may be appealed to the Board, but a decision of the Board shall be final. (c) If the deficiency, failure or breach continues to exist after any time limitation imposed by the committee and if such decision is not appealed to the Board, the Board may cause such deficiency, failure or breach to be performed or cured. (d) If the Board elects to cause such mainten- ance, repair or installation to be performed, the Board shall give ten (10) days' notice to the Owner of such election within which the Owner is to select a date not less than fifteen (15) nor more than forty-five (45) days following such notice by the Board within which such maintenance, repair or installation shall be per- formed or cured. If within said ten (10) day period the Owner has not selected such a date for performance or cure, the Board may select a date which shall not be less than ten (10) nor more than sixty (60) days from the date of the Board's original ten (10) day notice within which Owner shall perform or cure the deficiency, failure or breach involved. Unless the Owner and the Board otherwise agree, such maintenance, repair or installation shall take place only during daylight hours on any day, Monday through Friday, excluding holidays, (e) If the Association pays for all or any portion of the performance or cure of such maintenance, repair or installation, or if such Owner does not select a date as provided above upon which such maintenance, repair, installation, or cure is to be performed or cured or does not perform such maintenance, repair or installation on or before the date set by the Board and if the Owner does not otherwise agree in writing that entry onto such Lot, Unit or other Ownership Interest may be had by the 46 ML:kew 06/06/89 ML971,0047,0,0 Master Association or its delegates for such purpose, the Master Association may seek appropriate judicial relief, but may not impose a Special Assessment to recover or reimburse the Master Association for such cost, 7.05, Private Street Maintenance to City Standards. The pavement, sidewalks and streetlights located within the Private Streets shall be maintained by the Builder and thereafter by the Sub-Association for the Individual Projects where located in a safe, functional and reasonably attractive condition that is generally consistent with the standards adhered to by the City of Carlsbad for the maintenance of public streets, public sidewalks and public streetlights. 7.06, Storm Drain Maintenance, The surface of the storm drainage easements shown on Final Maps for the Project and all underground storm drains and storm drainage disposal facilities located within said storm drainage easements shall be maintained (by the Master Association where located within Community Common Area and by the Builder of and thereafter the Sub-Association of each Individual Project where located within an Individual Project) free of any obstructions which would interfere with the normal collection, passage and disposal of storm waters accumulating within or flowing through the master plan area. 7.07, Sewer Facilities Maintenance. Sewer mains and other sewer facilities located within the private sewer easements shown on any Final Maps shall be maintained (by the Master Association if located within the Community Common Area and by the Builder and thereafter the Sub-Association if located within an Individual Project) free of any obstructions which interfere with the normal passage of sewage to the public sewer system and shall also be maintained free of unreasonable amounts of inflow or infiltration; provided, however, that each Owner of a Dwelling Unit or the Owner of any Non-Residential Lot (as the case may be) shall be individually responsible for maintaining any sewer lateral which connects the sewer system serving a building or structure on his or her Dwelling Unit or Lot to a sewer main located within the private sewer easements even though a portion of such sewer lateral is located within the boundaries of the private sewer easements. 7.08 Emergency Repairs In the event any portion of the common easements or common area facilities which serve a particular Dwelling Unit are in need of emergency repairs, then the owner of the Dwelling Unit served by such common 47 ML:kew 06/06/89 ML971.0048.0.0 area easements or common area facilities shall have the right (upon written notice to the Master Association and to the Sub-Association within whose jurisdiction said Dwelling Unit is located) to unilaterally make such repairs without the prior approval or concurrence of any other Owners, the Master Association or Sub-Association, as appropriate, and, after completion of such repairs, shall also have the right to recover from the remaining Owners of Dwelling Units within the same Individual Project all costs of such repairs which were incurred in good faith and reasonably necessary to eliminate the emergency which gave rise to the need for such repairs. ARTICLE 8 ARCHITECTURAL CONTROL COMMITTEE 8.01 Organization and Membership. In order (i) to assure compatibility of design, appearance and quality of buildings and as well as the capacity and coordinated use of roads, parking, utilities and related infrastructure within the Project contemplated by the LFMP, the Master Plan and this Declaration, (ii) provide for the review of Site Devel- opment Plans by the Architectural Control Committee prior to submission thereof to the City's Planning Commission and Council as required as a condition to the approval of the Master Plan, and (iii) provide standards, guidelines, con- trols and procedures for the submission, review, approval, conditional approval or disapproval of plans for (a) con- struction, installation, repair, restoration, replacement or alteration of Community Common Area (including, without limitation, the Private Streets and the sewer, water, elec- trical, TV and other utility lines, cable, conduit pipe (including the alignment, sizing, pressure and capacity thereof) drainage, siltation and erosion control improvements and the excavation grading, compaction, stabilization, con- struction and landscaping affected by such work, and (b) the architectural design, appearance, height, setback orientation to streets, as well as the selection, installation and modifi- cation of exterior color schemes, finishes, materials and quality of materials and exterior lighting and landscaping within the Aviara Project (collectively herein sometimes referred to as "Regulated Improvements") there is hereby established an Architectural Control Committee which shall consist of three (3) persons. The Declarant shall have the exclusive right to appoint, remove (with or without cause) and replace all or any one or more of the members of the Architectural Committee; provided that during the period 48 ML:kew 06/06/89 ML971.0049.0.0 commencing one (1) year after the date of the close of escrow for the sale of the first Lot, Unit or other Ownership Interest within an Individual Project under the authority of a public report, until (i) ninety percent (90%) of the Own- ership Interests within such Individual Project have been sold or (ii) the expiration of fifteen (15) years from the date of the original issuance of a final subdivision public report for the sale of the Ownership Interests in an Indi- vidual Project, whichever first occurs, the Board of Directors shall have the power to appoint one (1) member to the Archi- tectural Control Committee which one (1) member must be an Owner of an Ownership Interest in the Project and may be removed (with or without cause) and replaced only by the Board of Directors. Thereafter the Board of Directors shall have the sole right to appoint all of the members of the Architectural Control Committee, to remove any one or more member thereof (with or without cause) and to replace any one or more of such members. Members appointed to the Architec- tural Control Committee by Declarant need not be members of the Master Association. 8.02 Resignation; Vacancies; Term of Office. Any member of the Architectural Committee may at any time resign from the Committee upon written notice delivered to the Declarant or to the Board of Directors, whichever then has the right to appoint a member to replace the member resigning. Vacancies on the Architectural Committee, however caused, shall be filled by the Declarant or by the Board of Directors, which- ever then has the authority under Section 8.01 hereof. Com- mencing with the date upon which the Board of Directors shall have the sole power to appoint all members of the Architec- tural Control Committee, the Board shall designate one member to serve for a term of one (1) year; and one member to serve for a term of two (2) years and one member to serve for a term of three (3) years. Each said member shall serve the length of his respective term unless he has resigned or has been removed from office. Thereafter, the terms of all mem- bers of the Architectural Control Committee shall be not less than one (1) year nor more than three (3) years. Any new member appointed to replace a member who has resigned or has been removed by the Board of Directors shall serve the unexpired term of the member having resigned or having been removed. Members who have resigned, been removed or whose terms have expired may be reappointed. 8.03 Duties; Committee Rules; Approvals. The Committee shall consider and act upon any and all proposals, applica- tions, requests and/or plans (including, without limitation, proposals and plans for Regulated Improvements submitted for 49 ML:kew 06/06/89 ML971.0050.0.0 its Approval pursuant to the various provisions of this Master Declaration) and shall perform such other duties as from time to time shall be assigned to the Architectural Committee by the Board of Directors including, among other matters, the inspection of the progress of Regulated Improvements within the Project to assure, among other things, conformance with plans, specifications, schedules and conditions as may have been approved or imposed by the Committee and the LFMP and development standards set forth in the Master Plan. The Committee may, from time to time in its sole discretion, adopt, issue, amend and repeal, by majority vote of its members, rules, re(gulations and/or guidelines setting forth, among other matters, the procedures for sub- mission of requests, proposals, plans, application or other materials or matters for review, consideration and Approval of the Committee and for the payment of a fee for reviewing such plans and specifications, which fee shall be based upon a schedule of the size and/or other features of the proposed Regulated Improvement. In connection with any Regulated Improvement, the Committee may require, among other matters, the submission of such detail in plans and specifications submitted for its review and/or Approval as it deems proper, including, without limitation, plot plans or drawings showing location of all existing and proposed improvements; location of parking, drainage systems; erosion control and siltation improvements, elevation drawings; descriptions of and/or samples of exterior materials, lighting, glass and/or colors and proposed construction schedules. Until receipt by the Committee of any required plans, specifications or other matters or materials and the payment of any fee applicable to the review thereof, the Committee may postpone review of any request, application, plan or proposal submitted for its Approval. The Committee shall Approve work and/or other proposals, plans, specifications or matters submitted for its Approval only if the Committee in its sole discretion deems that the Regulated Improvements is and/or will be compatible with the appearance, design, workmanship, quality of mater- ials and construction within the Project and will not be detrimental to the appearance of any portion of the Project. All construction shall be subject to and shall conform to all applicable laws, ordinances and regulations of the City, including without limitation, the Development Standards set forth in the Master Plan and the Committee may condition its approval upon the posting of a bond or deposit or other security to assure the timely completion of the proposed Regulated Improvement. 8.04 Meetings of the Committee. The Committee will meet from time to time as necessary to perform its duties here- 50 ML:kew 06/06/89 ML971.0051.0.0 under. The Committee may from time to time by resolution unanimously adopted in writing designate one or more of its members to take any action or to perform any duties for or on behalf of the Committee. In the absence of such designation, the vote of the majority of the members of the Committee or the written consent of the majority of the members of the Committee taken without a meeting shall constitute an act of the Committee. 8.05 No Waiver. No Approval, conditional approval or disapproval by the Committee of or with respect to any Regulated Improvement or any other proposal or other matter submitted to the Committee for same, shall be deemed to constitute a waiver by the Committee of any right to Approve, withhold Approval or impose the same or different conditions of Approval with respect to any similar Regulated Improvement or matter submitted to the Committee by the same or any other person. 8.06 Implementation of Approved Recgulated Improvements. Any Owner shall, as soon as practicable following the receipt of any Approval from the Committee for any Re<gulated Improve- ment, satisfy all conditions imposed upon said Approval and diligently proceed to commence and complete all construction, alteration and other work authorized and/or required by the Approval; said commencement to be in all cases, within not more than one hundred twenty (120) days from the date of Approval for same. If said Owner shall fail to comply with the provisions of this Section, any Approval given pursuant to this Article shall be deemed revoked unless the Architec- tural Committee upon written request of said Owner made prior to the expiration of said one hundred twenty (120) day period, extends the time for such commencement. The Architectural Control Committee may, for good cause, extend in writing said one hundred twenty (120) day period. 8.07 Inspection of Work. Upon completion of any Regu- lated Improvement or other work approved by the Committee, the Owner having received the approval for said Regulated Improvement shall promptly give written notice of said com- pletion to the Architectural Control Committee. Inspection of the Regulated Improvement and/or all related work and the correction, if any, of any defects therein shall proceed as follows: (a) Within thirty (30) days after receipt of said notice of completion, the Committee or its duly authorized representative may inspect or cause the Regulated Improvement to be inspected. If the Committee finds that such Regulated 51 ML:kew 06/06/89 ML971.0052.0.0 Improvement was not performed, constructed and/or completed in substantial compliance with the plans and specifications Approved by the Committee, it shall notify the Owner of the Unit or Units for which the Approval was obtained of such non-compliance within said thirty (30) days, specifying the particulars of non-compliance and shall request said Owner to cure the same. (b) If, upon the expiration of thirty (30) days from the date of such notification of non-compliance, the Owner notified shall have failed to cure such non-compliance, the Committee shall notify the Board of Directors in writing (with a copy to such Owner) of such failure and of the esti- mated cost of correcting or removing same. If said Owner shall thereafter fail to cure the non-compliance within a period of not more than "forty-five (45) days from the date of referral to the Board, the Board may, at its option, seek specific performance of the provisions hereof, damages or other judicial relief (including costs of suit and attorneys' fees) or cause the non-complying Regulated Improvements 'to be removed or the non-compliance to be cured and said Owner shall upon demand, reimburse the Association for all expenses incurred in connection therewith. If said Owner or Owners do not promptly repay the Association, the amount of any such costs and expenses may be recovereid in a judicial proceeding, together with attorneys' fees and costs of suit. (c) If for any reason the Committee fails to notify the Owner or Owners of any non-compliance within sixty (60) days after receipt of written notice of completion from said Owner pursuant to this Section, the Regulated Improve- ment shall be deemed to be in accordance with the plans and/or specifications approved by the Committee, 8,08 Owner's Failure to Complete Work. It shall be the obligation of any Owner who receives the Committee's approval for any Regulated Improvement to commence the work promptly and complete the same within not more than six (6) months from the date of the Committee's approval of work unless the Architectural Control Committee in writing extends the time to complete such work; or completion is rendered impossible by reason of strikes, fires or other events beyond the con- trol of said Owner or Owners. In the event any Owner shall fail to comply with the provisions of this Section, the Architectural Control Committee shall notify the Board of Directors of such failure and the Board of Directors shall proceed in accordance with the provisions of Section 8.07(b) above as though the failure to complete the Regulated 52 ML:kew 06/06/89 ML971.0053.0.0 Improvement was a non-compliance with an approval of the Committee, 8.09 Estoppel Certificates; Mortgages. The Architec- tural Control Committee shall, within thirty (30) days of a written request by any Owner therefor, deliver to such Owner in recordable form if required, an estoppel certificate executed by two (2) members of the Architectural Control Committee and certifying with respect to any Regulated Improvement that as of the date of such certificate either (i) the Regulated Improvement was Approved and completed in conformance with the provisions of this Article or (ii) said Regulated Improvement was not Approved and/or not completed in compliance with the provisions of this Article and also specifying the particulars of any such non-compliance. Any person purchasing an Ownership Interest or any Mortgagee holding or acquiring any Mortgage encumbering such Ownership Interest shall be entitled to rely upon any such certificate with respect to the matters set forth therein, which matters shall be deemed conclusive as between the Master Association, any Mortgagee and all of the Owners and Persons deriving any interest through them. 8.10 Preliminary Approvals. Any Owner wishing to obtain Approval for a Regulated Improvement to any Lot, Unit or other Ownership Interest may apply to the Committee for pre- liminary Approval by submission of such preliminary request, description and/or drawings of any such Regulated Improvement in accordance with the then existing rules of the Architec- tural Committee. It is intended that this preliminary approval procedure allow any Owner wishing to make a Regu- lated Improvement an opportunity to obtain guidance concern- ing the design considerations before expending substantial sums for plans, specifications and/or other exhibits or materials required for application for a final Approval. The Architectural Committee may, from time to time, in its sole discretion, adopt, issue and amend Committee Rules to imple- ment such preliminary Approvals; provided, however, that in no event shall any preliminary Approval be deemed to be a final Approval authorizing the commencement of any Regulated Improvement. 8.11 Compensation of Members of Committee. Unless approved in writing by the Board of Directors, the members of the Architectural Control Committee shall receive no com- pensation for services rendered other than reimbursement for actual expenses incurred by them in the performance of their duties hereunder. 53 ML:kew 06/06/89 ML971.0054.0.0 8.12 Non-Liability of Committee Members. Neither the Architectural Control Committee nor any member thereof shall be liable to the Association nor to any Owner for any loss, damage or injury arising out of or in any way connected with the performance of the Committee's duties hereunder, unless due to willful misconduct or bad faith of the Committee. The Committee shall review and approve or disapprove all proposals and plans for Regulated Improvements submitted to it and any additions, alterations or changes therein, solely on the basis of the aesthetic considerations and the overall benefit or detriment which would result in the Project. The Committee may take into consideration the common plan for the Overall Property as contemplated by this Declaration, compliance with the Development Standards in the Master Plan, the LFMP, the conditions imposed on any land use and development approvals which may required for a Regulated Improvement, the Access and Utility Plats and any conflict or interference with conditions or improvements which have been imposed, con- structed or installed in connection with other improvements within the Project, the aesthetic aspects of the architec- tural design, placement, height and setback of buildings, the quality of building, materials, building schedules, land- scaping, color schemes, exterior finishes and materials and similar features, but shall not be responsible for reviewing, nor shall Approval of any Regulated Improvement be deemed approval of any plan or design from the standpoint of struc- tural safety or conformance with building or other codes, 8,13. Builder Compliance Procedure. Notwithstanding anything herein contained to the contrary. Declarant (and any Builder holding a written exemption from the provisions of this Article executed by Declarant in the form attached hereto as Exhibit "I") shall be exempt from any and all provisions of this Master Declaration requiring Approval of the Architectural Control Committee. ARTICLE 9 PROTECTION OF LENDERS, 9.01 Notice to Association, Each Owner shall notify the Board in writing within thirty (30) days of the recording of any first Mortgage encumbering his Lot, Unit or other Ownership Interest stating the name and address of the Mortgagee holding such first Mortgage, 9.02 Notification of Mortgagees. Any Mortgagee holding a first Mortgage encumbering any Ownership Interest is 54 ML:kew 06/06/89 ML971.0055,0.0 entitled, upon request, to written notification from the Board of Directors of any default in the performance of the Owner (mortgagor) of such Owner's obligations under this Master Declaration, the Bylaws and/or the Articles of the Association which default is not cured within sixty (60) days. 9.03 Subordination of Assessment Liens. Any First Mortgagee or Institutional Mortgagee holding a Mortgage encumbering any Ownership Interest which acquires title to or possession of such Ownership Interest through foreclosure or otherwise pursuant to remedies provided in such Mortgage (a) will be exempt from any "right of first refusal," whether now or hereinafter contained in this Master Declaration or any Supplemental Declaration, and (b) shall take said Owner- ship Interest free of any claim or lien for unpaid Assess- ments created under this Master Declaration or any Supple- mental Declaration (whether Regular or Special) and charges levied against such Ownership Interest which accrued prior to the date of such acquisition of title to or possession of such Ownership Interest, This subordination shall apply to the lien of any such Mortgage, whether now or hereafter encumbering an Ownership Interest and shall apply only to Assessments and charges which became due and payable prior to the date of such acquisition by foreclosure or otherwise pursuant to remedies provided in such Mortgage, and shall not relieve such Ownership Interest, nor any person so acquiring title or possession thereto, from any liability or lien of any Assessments and charges thereafter becoming due, made, levied or assessed, nor from a subse<guently levied Assessment or charge for a share of any previously unpaid Assessments or charge against the Ownership Interest foreclosed upon, pro- vided any such subsequent Assessment is against all of the Ownership Interests within the Project, including the Owner- ship Interest foreclosed upon and is divided among all of the Ownership Interests within the Project in the manner provided for Regular Assessments, 9.04 Prior Approvals, Unless at least seventy-five percent (75%) of the holders of Institutional or First Mortgages on Ownership Interests within the Project (based upon one vote for each such Mortgage held) have given their prior written Approval, the Master Association shall not (i) by act or omission, seek to abandon, partition, sub- divide, encumber, sell or transfer the Common Area, (ii) change the method of determining and collecting Assess- ments established in this Master Declaration nor the obliga- tions of the Owners for the payment of same nor make any other material amendment to the Master Declaration, Bylaws or 55 ML:kew 06/06/89 ML971.0056.0.0 Articles of Incorporation, (iii) by act or omission, waive or abandon the scheme of regulation and enforcement set forth in this Master Declaration pertaining to architectural design and exterior appearance and maintenance of Improvements or the maintenance of the Common Area (iv) fail to maintain fire and extended coverage on insurable Common Area on a current replacement cost basis in an amount not less than one hundred percent (100%) of the insurable value thereof (excluding land and excavations) based upon current replacement costs, (v) use hazard insurance proceeds received by or made available to the Master Association for damage or loss to Common Area for other than the repair, replacement and/or reconstruction of same and/or (vi) after the sale of Ownership Interests within an Individual Project pursuant to a public report, effectuate any decision of the Master Association to terminate profes- sional management for th'e Common Area and assume self-manage- ment thereof. The granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Area shall not be deemed a transfer within the meaning of Subsection (i) above. 9.05 Books, Records; Annual Statement, Any First Mort- gagee or Institutional Mortgagee holding a Mortgage encumber- ing any Ownership Interest shall be entitled, upon request, to (i) examine the books and records of the Master Associa- tion during normal business hours, and (ii) receive an annual audited financial statement of the Master Association within the period days following the end of its fiscal year as specified in Section 4,05(i) of this Declaration, 9.06 Reserves for Replacements, The Board of Directors shall be required to include within the Regular Assessments assessed against each Ownership Interest and payable monthly (rather than by Special Assessment) amounts reasonably neces- sary to fund adequate reserves for maintenance, repairs and replacements of improvements within the Master Common Area. 9.07 Taxes, Assessments and Charges. All taxes. Assessments and charges which may, under California law, become liens prior to any Mortgage encumbering an Ownership Unit, shall relate only to and be a lien only upon the individual Ownership Interest to which such taxes. Assessments and/or charges relate and not to the Project as a whole or the Overall Property. 9.08 No Priority Over Mortgages, No provision in this Master Declaration shall give any Owner of an Ownership Interest priority over any rights of any Mortgagee under a Mortgage encumbering such Ownership Interest with respect to 56 ML:kew 06/06/89 ML971,0057.0.0 any distribution of insurance proceeds or condemnation awards for losses to or a taking of such Ownership Interest. 9.09 Professional Management. Any agreement for pro- fessional management for the Common Area within an Individual Project shall provide (i) for termination by either party without cause or payment of any termination fee upon thirty (30) days or less written notice and (ii) for a term of not longer than one (1) year unless such agreement or renewal thereof has been approved by vote of the majority of the Owners otherwise entitled to vote in meetings of the Sub-Association for such Individual Project. 9.10 Amendments to Declaration, No amendment to this Master Declaration shall affect the rights of any Mortgagee under any mortgage made in good faith and for value encumber- ing an Ownership Interest and recorded prior to the recorda- tion of such amendment unless such Mortgagee joins in the execution of such amendment or approves the same in writing. 9.11 Effect of Breach. No breach of any provision contained in this Master Declaration shall defeat, impair or invalidate the rights of any Mortgagee holding a Mortgage encumbering an Ownership Interest provided that all of the covenants, conditions and restrictions set forth herein shall be binding upon and effective against any Person who acquires title to or possession of such Ownership Interest by way of foreclosure or otherwise pursuant to the remedies provided in such Mortgage. 9.12 Notice of Condemnation, Damage and Meetings. Upon request of any First Mortgagee or Institutional Mortgagee holding a Mortgage encumbering an Ownership Interest, the Board of Directors shall (i) notify any such Mortgagee of all meetings of the Master Association (whether regular or special), and such Mortgagee shall have the right to attend or be represented at such meeting but shall not have the right to vote at such meeting unless such Mortgagee has acquired title to the Ownership Interest encumbered by its Mortgage through foreclosure or otherwise pursuant to rem- edies provided in such Mortgage and (ii) notify any such Mortgagee of any condemnation or substantial damage or destruction of the Community Common Area. 9.13 Conflict. In the event of any conflict between any provisions of this Article and any other provisions in this Master Declaration, the By-Laws or Articles of the Associa- tion (as the same or any one or more of said documents may be 57 ML:kew 06/06/89 ML971.0058.0.0 amended from time to time), the provisions of this Article shall control. 9,14 Extension of Lender Protections to Other Mortgagees. The Board of Directors shall have the right by vote of seventy-five percent (75%) of the Board to extend the bene- fits of any one or more of the provisions of this Article to apply uniformly to other Mortgagees holding Mortgages of equal lien priority encumbering Ownership Interests and to execute and/or record any documents reasonably necessary for such purpose. ARTICLE 10 CAPITAL IMPROVEMENTS TO COMMUNITY COMMON AREA Whenever in the judgment of the Board of Directors capital improvements, including without limitation, repairs, replacements, painting or other work, is required (or the same is required by law or in order to comply with provisions of the LFMP, the Master Plan or any conditions of approval for the Aviara Project, or any Individual Project, the responsibility for which compliance has not been assumed by or imposed upon the Builder thereof) and the cost of said capital improvements, is (based upon the bids of at least two (2) reputable and indepencient California licensed contractors or tradesmen) estimated to be in excess of five percent (5%) of the amount of the budgeted gross expenses of the Master Association for that fiscal year, then the Board of Directors shall notify the Members of the proposed or required capital improvements and shall, in addition, notify the Members of whether, in the judgment of the Board, the making of such capital improvements should be financed or funded out of (i) Special Assessments, (ii) reserves collected and avail- able for such purpose, or (iii) otherwise. Following the recommendation of the Board, any decision to proceed with such work (unless required by law) shall require the vote or written assent of a majority of the voting power of the Members other than the Declarant and if approved, the cost thereof (to the extent such cost exceeds reserves approved for such use) shall be specially assessed to each Owner in accordance with the provisions of Section 5.02(b) of this Declaration. Any such capital improvement which (on the basis of the bids of at least two (2) reputable and independent California licensed contractors or tradesmen) is estimated to cost less than five percent (5%) of the budgeted gross 58 ML:kew 06/06/89 ML971.0059.0.0 expenses of the Master Association for that fiscal year may be approved by the Board of Directors without the prior approval of the membership and specially assessed to the Owners in accordance with the provisions of Section 5.02(b) of this Declaration. Upon approval as described above, the Board shall cause the proposed capital improvements to be made and the cost thereof to be paid for from such Special Assessment, if any, or from reserves or otherwise as approved as set forth above. ARTICLE 11 ADDITIONAL EASEMENTS, RESERVATIONS AND COVENANTS 11.01 Utility Easements. The rights and obligations of the Owners with respect to lines for sanitary sewer, storm drains, water, electricity, gas, telephone, and other utility lines, shall be governed by the following: (a) Wherever sanitary sewer connection and lines, facilities and/or water connections and lines, or electricity, gas, telephone lines or other utility lines are installed within the Project, which connections or lines, or any por- tions thereof, lie in or upon any portion of an Ownership Interest, the Ownership of which is vested in an Owner other than the Owner of an Ownership Interest served by any such connections or lines, the Owner of the Ownership Interest served by such connections or lines and the Master Association shall each have the right, and an easement and right of entry is hereby declared and established therefor which may be exercised for and on behalf of such Owner by the Master Association or its designee, to enter upon such other Ownership Interest or to have the appropriate utility company enter thereon to repair, replace and generally maintain said connections and/or lines as and when the same may be necessary. (b) Wherever sanitary sewer connections and lines, facilities and/or water connections and lines or electricity, gas, telephone lines or other utility lines are installed within the Project, which connections serve more than one Ownership Interest, the Owner of each Ownership Interest served by any such connections or lines shall be entitled to the full use and enjoyment of such 59 ML:kew 06/06/89 ML971.0060.0,0 portions of said connections or lines as may serve or be needed to serve his or her Ownership Interest, and in the event any portion of such connection or lines is damaged or destroyed through the negli- gence or willful misconduct of any Owner or any of his employees, servants, agents, invitees, tenants, guests or members of his family, so as to deprive other Owners of the full use and enjoyment of any such connection or lines, then such connections or lines shall be repaired and/or restored by the Master Association, its designee or the appropriate utility company, and any cost incurred in connection there- with shall be payable by the Owner responsible therefor to the Master Association on demand and if not so paid may be recovered by the Master Associa- tion in an action brought by the Master Association, together with costs of suit and attorneys' fees, provided, however, in the event any portion of any such connections or lines is damaged or destroyed by a cause other than the negligence or willful misconduct of one of the Owners, his employees, servants, agents, guests, tenants, invitees or members of his family (including ordinary wear and tear and deterioration from lapse of time) such connection or lines shall be repaired and/or restored by the Master Association, its designee or the appropriate utility company and any cost incurred in connection therewith shall be paid as a Common Expense, (c) The exercise of any right or use of any easement provided in this Section shall be subject to the conditions precedent that such exercise shall be reasonable and in good faith, and all damage to any Ownership Interest or to any portion of the Community Common Area resulting therefrom shall be repaired at the sole cost and expense of the Person or Persons exercising such right or using such easement, (d) The common easements shown on Final Maps and any facilities now or hereafter constructed and installed within such easements are not intended nor have they been dedicated to the public use; provided, however, that if all or a portion of such easements are coextensive with a public utility easement described and depicted on a Final Map, then such easements and the right of each Owner of a Lot or Unit within any subdivision created by 60 ML:kew 06/06/89 ML971,0061,0,0 such Final Map to the use and enjoyment of such easements shall be subordinate to the public's rights to the use and enjoyment of such public utility easement. 11.02 Cable Television or Antenna System. Notwith- standing the provisions of Section 3.01, there is hereby reserved to and for the benefit of the Declarant, its successors and assigns, together with the right to grant and transfer the same to the Master Association or others, the right to place and install or cause to be placed or installed, in, under, over, across and through the Owner- ship Interests and the Community Common Area and Individual Projects a community cable, antenna television system or satellite master antenna television system and thereafter to own, lease, operate and "maintain such community cable and/or antenna or satellite television system together with the right to enter upon the Ownership Interests and the Community Common Area and Individual Projects to service, maintain, repair, reconstruct and replace any lines, equipment or * facility forming a part of such community system; provided, however, that the exercise of the rights hereby reserved does not unreasonably interfere with the reasonable use and enjoyment of the Owners of the Ownership Interests. 11.03 Reservation of Oil and Mineral Rights. There is hereby reserved to and for the benefit of Declarant, its successors and assigns, together with the the right to grant and transfer the same, all oil, gas, minerals and other hydrocarbon substances, including all rights incidental to such ownership, now or at any time hereafter situated in and under any portion of the Project lying below a depth of 500 feet measured vertically from the surface of the Overall Property together with the right to explore for, extract and produce the same and to enter the subsurface of any portion of the Project all for said purposes, without, however, any right to enter upon the surface of the Overall Property or into any portion of the subsurface thereof, lying above a depth of 500 feet, measured vertically from any portion of the surface of the Overall Property. 11.04 Community Common Area Easements. There are hereby reserved and established to and for the benefit of each Owner of each Ownership Interest (including those owned by Declar- ant) non-exclusive easements appurtenant to each Ownership Interest for ingress, egress, use and enjoyment over the Community Common Area. Such easements shall pass automa- tically to each Owner of an Ownership Interest as an incident to the grant thereof but subject in all events to the rights 61 ML:kew 06/06/89 ML971.0062.0.0 of the Master Association, Declarant and other Owners as set forth in this Master Declaration. 11,05 Drainage Easements. There are hereby reserved to Declarant, its successors and assigns, together with the right to grant or transfer the same to others, easements in, over, under, across and through the Ownership Interests, the Community Common Area and Individual Projects to grade, establish and maintain (in conformance with the Master Plan and the Master Maintenance Plan) drainage patterns and facil- ities for the benefit of the all Ownership Interest in the Project and for the Overall Property. Upon establishment and completion of such drainage patterns and facilities, the Project and each of the Ownership Interest shall be and remain subject thereto and the same may not be altered except with the written consent of the Declarant or the Architec- tural Control Committee. 11,06 Easements for Completion, Marketing and Sale. There are hereby established and reserved to and for the benefit and use of the Declarant, its successors and assigns, together with the right to grant and transfer the same, such easements, rights and rights of use in, over, under, across and through the Project as are or may be from time to time reasonably necessary for Declarant, its agents, architect, contractors, engineers, employees, salespersons, and/or their respective agents, employees and/or representatives to exca- vate, grade, construct, build, develop, landscape and com- plete all portions of the phased development of the Aviara Project described in the recitals to this Master Declaration pursuant to the common plan described therein, the LFMP, the Master Plan and the Development Standards (including, but not limited to, the installation and maintenance of electrical, telephone, television antenna or reception system, water, gas, sanitary sewer lines and drainage facilities, the place- ment and storage of building materials and equipment, the placement of temporary buildings, trailers and/or similar structures or equipment) and to advertise, show, market, sell and/or lease unsold or unleased Ownership Interests. Without limiting the generality of the foregoing, the creation, reservation and establishment of the easements, rights and rights of use described above are expressly declared to include, the right of Declarant to maintain within any and all Phases of the Overall Property, one or more fully equipped and staffed sales offices, to operate, maintain and show Ownership Interests, Unless extended by vote of two-thirds (2/3) of the Members of the Master Association (excluding the Declarant) as evidenced by a recorded written notice executed by the president and two members of the 62 ML:kew 06/06/89 ML971,0063.0.0 Board, the easements established by this Section shall expire automatically ten (10) years after the close of escrow for the sale of the first Lot, Unit or Ownership Interest under the authority of a public report. 11.07 Establishment of Easements. Each of the easements reserved and established by this Master Declaration (includ- ing without limitation all easements established for the benefit of and enforceable by the City) shall be deemed to be established upon the recordation of this Master Declaration and shall run with the land for the use and benefit of all of the real property to which they relate, superior to all other encumbrances which may thereafter be recorded against or in favor of the Aviara Project or any portion of the Overall Property annexed to the Project. 11.08 Easement for the Benefit of Golf Course. Easements are hereby reserved and established over those portions of the Lots ("Golf Course Lots") within the Project which are conti<guous to the the fairways, rough and playing areas of the Golf Course for the benefit of the Owner of the Golf Course and its members and other persons authorized to use and maintain the Golf Course as are reasonably necessary to permit Golf Course play, maintenance and repair and are customarily associated with, normally expected or commonly arising out of the proximity of golf course play adjacent to residential Lots including without limitation, the burden, inconvenience, damage or injury commonly arising or normally expected in connection with such activity. Each Owner of a Lot contiguous to the fairways, rough and playing areas of the Golf Course does hereby waive any and all right of action and/or right to make claim for damage or injury against the Master Association, its directors, officers, agents, or employees, the owner and operator of the Golf Course, its directors, officers, agents, or employees, the Declarant, its directors, officers, agents, or employees and the architect, designers, and builders of the Golf Course and of the Builder of the Individual Project within which such Owner's Lot is located and against any Sub-Association and each director, officer, agent and employee of such Sub-Association as may be formed in connection with such Individual Project arising out of such activities. This waiver shall be binding upon each and every Owner of a Golf Course Lot whether or not separately set forth or referred to in the documents of sale and/or deed to such Golf Course Lot, Owners of Golf Course Lots shall not enter upon the Golf Course from their Lot nor hit golf balls from such Lots onto the Golf Course. 63 ML:kew 06/06/89 ML971.0064,0,0 11,09 Assessment District Financing. The Master Asso- ciation shall have the full power and authority to establish, form, join in and cooperate with the City, the Declarant and/or each Builder in the formation of any "District", as defined in the "Integrated Financing District Act" (Sections 53175 et. seq. of the California Government Code), the "Landscape and Lighting Act of 1972" (Sections 22500 et. seq. of the California Streets and Highways Code) or any similar, or successor legislation to provide for the benefit of the Association, the Community Common Area, the Declarant, and each Builder and Owner of a Lot, Unit or other Ownership Interest within the Project, for the construction and/or maintenance of any facilities, improvements and infrastruc- ture permitted under or described in said Act, together with the right to dedicate and encumber Community Common Area with the lien of such financing and collect amounts required to pay such obligation as a Regular Assessment, ARTICLE 12 INSURANCE 12,01 Types of Insurance. The Master Association shall (to the extent reasonably available) obtain and continue in effect, with the premiums therefor being paid out of Common Funds, the following types of insurance: (A) Property. A master or blanket policy of property insurance naming as insureds the Master Association, the Declarant and all Owners naming the Master Association, as trustee, for all of the named insureds as their interests may appear and containing, as a part thereof, the standard fire and special extended coverage endorsement with replacement cost coverage for all structures and improvements within the Common Area for and against the following: (i) Loss or damage by fire or other risks covered by the special extended coverage endorsement. (ii) Loss or damage to or as a result of theft, vandalism and malicious mischief. (iii) Such other risks, perils or cover- age, including but not limited to director and officer liability insurance. 64 ML:kew 06/06/89 ML971.0065.0.0 Said master policy or the endorsements made a part thereof shall (to the extent reasonably available): (iv) contain a waiver by said insurer of any and all rights of subrogation against all Owners (including without limitation Declarant, the Owner of the Resort Hotel, the Golf Course and Sports Center and each Builder and their respective directors, officers, agents and employees the Master Association, its Board (and each member thereof), its officers and employees (and each of them), any Managing Agent employed by the Master Association, (v) provide that said master policy cannot be cancelled, suspended, or avoided in whole or in part by reason of any act, omis- sion or breach of any covenant, condition or restriction contained herein by the Master Association, its Board of Directors, officers. Managing Agent, or any one or more Owners without the prior written demand upon the Master Association to cure such breach and that in no event shall said policy be cancelled, invalidated, suspended or avoided in whole or in part for any reason without at least thirty (30) days' prior written notice from the insurer to the Master Association, Declarant and to any Owner or Mortgagee who shall have filed a written request with said insurer for such notice, (vi) provide that the Board of Directors or its duly authorized representatives shall have the exclusive authority to represent all of the Owners with respect to adjustment of any and all losses covered by said policy. (vii) provide that any "non control" pro- vision in said policy is excluded or super- seded, by an endorsement so that the insurance obtained pursuant to this Article 12 shall not be prejudiced by any act or neglect of any of the insureds when such act or neglect is not within the knowledge and control of the insureds collectively and shall likewise not be prejudiced by any failure of the insureds collectively to comply with any covenant or 65 ML:kew 06/06/89 ML971.0066.0.0 condition with regard to any portion of the Master Common Area or other portion of the Project over which the insureds collectively have no control. (viii) provide that all insurance proceeds payable under said master policy or the endorsements made a part thereof obtained by the Master Association shall be paid to the Master Association, as trustee (or to any insurance trustee as may and/or appointed by the Board of Directors), to be held and expended as provided in this Master Decla- ration for the benefit of the Master Asso- ciation and its members and the insurer shall have no right 'to elect to make a cash settle- ment in lieu of replacement, repair or recon- struction unless approved by the vote or written consent of seventy-five percent (75%) of the Members. Said master policy or the endorsements made a part thereof may also: (ix) provide for deductibility feature in such amount as the Board may from time to time approve, and (x) provide for a biannual insurance review which shall, if necessary, include an appraisal of the structures and improvements within the Master Common Area by a represen- tative of the insurer issuing said master policy, and assessed to the Members as part of Regular Assessments. (B) Public Liability. A comprehensive public liability and property damage policy naming as insureds the Master Association, together with each of its Directors, Officers and employee of the Master Association, its Managing Agent, if any, in their capacity as such and all of the Owners (including, without limitation. Declarant, the Owners of the Resort Hotel, the Golf Course and the Sports Center and their respective directors, officers, agents and employees) with respect to any liability arising out of or incident to the owner- ship, operation, management, maintenance, repair and/or use of the Master Common Area by the Asso- 66 ML:kew 06/06/89 ML971.0067.0.0 ciation, its directors, officers, agents and employees, all Owners and their respective guests, employees, invitees, tenants and occupants of the Project. Said policy or the endorsements made a part thereof shall provide immediate protection with a combined single liability limit (bodily injury and property damage) of not less than One Million Dollars ($1,000,000.00) for each occur- rence. Said comprehensive public liability and property damage policy shall also include but shall not be limited to: (i) insurance against bodily injury, death or property damage occurring in, on or about any portion of the Master Common Area and Individual Project common area. (ii) a "cross-liability" or "severability of interest" endorsement to provide that said policy (without increasing the limits of liability thereunder) shall be interpreted as if a separate policy was issued to each insured so as not to prejudice the rights of a named insured against another named insured or otherwise exclude coverage to an Owner by reason of a negligent act of another insured. (iii) insurance against personal injury with any employee exclusion deleted. (C) Workmen's Compensation. Workmen's com- pensation and employer's liability insurance to the extent necessary to comply with applicable laws. 12,02 Insurance on Individual Projects and Separate Ownership Interests, Each Owner (including without limi- tation each Builder at his own cost and expense) shall be solely responsible to obtain and keep in force liability and other insurance in connection with his Ownership Interest and the contents and other improvements located on or within his Ownership Intererst, All such policies, however, must con- tain waivers of.subrogation of claims against the Master Association, its directors, officers, agents and employees and all other Owners (including, without limitation, the Declarant, and the Owners of the Resort Hotel, the Golf Course and the Sports Center and their respective directors, officers, agents and employees) with respect to any and all loss or damage covered by such insurance. 67 ML:kew 06/06/89 ML971.0068,0,0 12.03 Additional Insurance and Bonds. The Master Asso- ciation may also purchase with Common Funds such additional insurance and/or bonds as it may, from time to time, deter- mine by the Board to be reasonably necessary or desirable, including but not limited to fidelity bonds naming each member of the Board of Directors, the officers of the Master Association, any Managing Agent and such other persons as may be responsible for handling funds collected and/or received by or on behalf of the Master Association. Such fidelity bonds shall be in such amounts as the Board shall determine and shall contain waivers of any defense based upon exclu- sions of persons serving without compensation and shall also contain provisions prohibiting the cancellation, termination or modification thereof for any reason without at least thirty (30) days prior written notice to the Master Association, 12.04 Choice of Contractor. With respect to any repairs or reconstruction for which proceeds of insurance are paid or are payable to the Master Association, as trustee or other- wise, the Board of Directors shall have the right to desig- nate or approve the contractor to perform said repairs or reconstruction. 12.05 Choice of Insurance Company. All policies of insurance obtained by the Master Association or its Board of Directors as provided in this Article 12 shall be obtained from an insurance company qualified to do and doing business in the State of California and holding a Policy Holder Rating of "A" and a Financial Category of Class 8 or better by Best's Insurance reports and may be obtained from one or more such companies, 12.06 Expense of Collecting Insurance Proceeds. All costs and expenses incurred by the Master Association in the collection adjustment and/or recovery of proceeds of any insurance policy purchased or maintained by the Master Association as provided in this Article 12 (including but not limited to any and all fees of attorneys, appraisers, architects and adjusters) shall be specially assesseid to each Owner in accordance with the provisions of Section 5.02(b) hereof. 12.07 Insurance Requirements for Individual Projects and Ownership Units Within Individual Projects. The Supplemental Declaration required for each Individual Project shall require the Individual Homeowner's Association formed as the governing body therefor to obtain and continue in effect (for all common areas and common area structures con- 68 ML:kew 06/06/89 ML971.0069.0.0 taining dwellings or units) a master or blanket policy for the benefit of the Owners of the Lots or Units within such Individual Project which policy shall (a) provide insurance against the same risks and perils identified in Section 12.01 hereof, (b) designate as additional insureds, the Master Association, the Individual Homeowners Association, all Owners and all other persons required to be so named in the master policy described in Section 12.01 hereof (including, without limitation, the Declarant, the Owner of the Resort Hotel, Golf Course and Sports Center and their respective directors, officers, agents and employees) and (c) provide (in the case of damage or destruction to the improvements and structures covered by such insurance) that the proceeds from such insurance must be used to repair, rebuild or reconstruct the structures and improvements so insured. Individual policies of insurance obtained by Owners of individual Lots, Units and Dwellings (i.e., generally limited to the personal property of individual Owners and the contents and improve- ments located within such Ownership Interests) shall be in such form and contain such endorsements as will assure such policies are not inconsistent with the provisions of Section 12.02 of this Article. ARTICLE 13 DAMAGE OR DESTRUCTION TO COMMON AREA; REBUILDING 13.01 Determination and Collection of Insurance; Bids; Commencement of Repair. As soon as possible after the damage or destruction of structures or improvements within the Common Area, the Board of Directors shall (i) determine the extent of such damage and make, prepare and/or file all necessary insurance claims or proofs of loss, (ii) obtain bids and/or plans from at least two (2) reputable contractors and/or architects, licensed in California, which bids and/or plans shall set forth in detail the work required to repair, reconstruct and restore the damaged or destroyed portions of the Common Area to substantially the same condition as it existed prior to such damage and the itemized cost of such work, (iii) determine the amount and collect all proceeds of insurance available to the Master Association, or the Board, for the purpose of effecting such repair, reconstruction and restoration and (iv) designate in writing an officer or director of the Master Association to act as trustee in whose name the proceeds of such insurance shall be made payable, which trustee shall be authorized to distribute such proceeds at the direction of the Board (or if objection is raised, then pursuant to order of court or decision in arbitration, as the circumstances may require). Repair, reconstruction 69 ML:kew 06/06/89 ML971.0070.0.0 and/or restoration of the damaged Common Area shall be subject to compliance with all applicable ordinances and regulations of the City and shall commence as soon as possible after receipt by the Master Association of the insurance proceeds available to the Master Association, as trustee or otherwise, to effect such work, but in no event later than sixty (50) days from the receipt thereof, provided that if whether conditions, strikes, unavailability of building materials or similar events beyond the control of the Board prevent or make impracticable commencement by such date, said date shall be extended until work can commence, provided that no such extension shall be for a period longer than an additional one hundred twenty (120) days. The Board of Directors shall have the authority to engage the services of such architects, engineers, contractors, adjusters or other professional persons as it deems reasonably necessary to assist the Board in competently discharging its duties under this Section. 13.02 Insurance Proceeds Sufficient to Rebuild. In the event of damage or destruction to structures or improvements within the Common Area and the insurance proceeds received by the Master Association, as trustee or otherwise, are suffi- cient (when added to any reserves available for such repairs, reconstruction or restoration) to effect the total repair, reconstruction and restoration of the damaged or destroyed Common Area, then the Master Association, in accordance with the provisions of this Article 13, shall cause the damaged portions of the structures or improvements within the Common Area to be repaired, reconstructed and restored to substan- tially the same condition as the same existed prior to such damage or destruction. 13.03 Insurance Proceeds Within Eighty-Five Percent of Being Sufficient to Rebuild. In the event of damage or destruction to structures or improvements within the Common Area and the insurance proceeds received by the Master Association, as trustee or otherwise, to effect such repair, are within eighty-five percent (85%) of being sufficient (when added to any reserves) available for such repairs, reconstruction or restoration) to cover the cost of such repair, reconstruction and restoration, the Master Associ- ation shall promptly cause such damage to be repaired, reconstructed and restored in substantially the same condition as existed prior to such damage, and the difference between the insurance proceeds (when added to any of the funds parenthetically described above) received by the Master Association for such purpose and the actual cost of such 70 ML:kew 06/06/89 ML971.0071.0.0 repair, reconstruction and restoration shall, in accordance with Section 5.02 hereof, be specifically assessed to Owner. 13.04 Insurance Proceeds Less Than Eighty-Five Percent of an Amount Needed to Rebuild. If the proceeds of insurance received by the Master Association, as trustee or otherwise, are insufficient (when added to any reserves authorized, collected and held in accordance with the provisions of the Declaration which are otherwise available for such repair, reconstruction or restoration) to cover at least eighty-five percent (85%) of the cost of repair, reconstruction and restoration to the damaged or destroyed Common Area, then seventy-five percent (75%) of the Owners otherwise entitled to vote shall by vote at a duly held meeting of the Master Association (i) determine whether to repair, reconstruct and restore the damaged or destroyed Common Area and specially assess all of the Owners in accordance with Section 5.02 hereof, for all additional funds needed for such purpose or (ii) determine not to repair, reconstruct or restore the damage to the Common Area. 13.05 Duties of Board During Reconstruction. If repair, reconstruction and restoration are to take place in accor- dance with the provisions of this Article 13, the Board shall (i) enter into a written contract with a contractor licensed in California and submitting the lowest reasonable bid for such repair, reconstruction and restoration, (ii) cause the insurance proceeds available for said work and funds collected by reason of Special Assessments or otherwise authorized and available therefor to be disbursed in appro- priate progress payments, through a builder's control company, or through an insurance trustee appointed by the Board for such purpose at a bank or trust company, and (iii) take all steps necessary to ensure the commencement, diligent prosecution and completion of such repair, recon- struction and restoration in a lawful, workmanlike manner at the earliest possible date. 13.06 Determination Not to Rebuild. If a determination is made (whether by affirmative vote, failure to vote or failure to commence repair within the period or any extension thereof permitted under Section 13.01) not to repair, recon- struct or restore any damage or destruction to the Common Area, then the insurance proceeds received by the Master Association, as trustee or otherwise to effect such repair (less any amounts expended by the Board in the discharge of its duties under Section 13,01 hereof and expended in clear- ing debris and landscaping the Common Area) shall, as deter- mined by the Board in its sole discretion, be (i) retained by 71 ML:kew 06/06/89 ML971.0072.0.0 the Master Association and used to offset subsequent Common Expenses of the Master Association, or (ii) divided equitably among and disbursed to the then Owners of the Ownership Units and/or to their respective Mortgagees, as their interests appear. .SiRTICLE 14 EMINENT DOMAIN The term "taking" as used in this Article shall mean condemnation by eminent domain or sale under threat of condemnation. In the event of a threatened taking of all or any portion of the Community Common Area, the Board and such persons as the Board shall have the exclusive authority to represent all of the Owners in connection with such taking. The Board shall act in its sole discretion with respect to any awards being made in connection with the taking and shall be entitled to make a voluntary sale to the condemnor ifi lieu of engaging in a condemnation action. Any awards received on account of the taking shall be made payable to an officer or director of the Master Association as designated in writing by the Board as a trustee for such purpose with authority to disburse any such award at the direction of the Board (or in the event of an objection pursuant to order of court or deci- sion in arbitration, as the circumstances may require). In the event of a taking of less than all of the Common Area, the rules as to restoration and replacement of the Common Area and the improvements thereon shall apply as in the case of destruction of improvemients upon the Common Area. In the event of a total taking, the Board may in its sole discretion retain any award in the general funds of the Master Associa- tion or distribute equitably all or a portion thereof to the Owners, subject to the prior rights of Mortgagees who are entitled to receive an Owner's portion of such award pursuant to the terms of their Mortgages. ARTICLE 15 REMEDIES FOR BREACH OR DEFAULT 15.01 Remedy at Law Inadequate. It is hereby expressly declared and agreed that if the remedy at law to recover damages for the breach, default or violation of any of the covenants, conditions, restrictions, reservations, easements, rights, and equitable servitudes established by this Master Declaration is inadequate, and the failure of any Owner, 72 ML:kew 06/06/89 ML971.0073.0.0 Builder, tenant, occupant or user of any Ownership Interest to comply with each and all of the terms and provisions of this Master Declaration, the rules, regulations, decisions, resolutions and By-Laws and Articles of the Master Associ- ation as adopted and/or amended from time to time, may be specifically enforced or enjoined by appropriate legal pro- ceedings instituted by Declarant, any Owner, the Master Association, its officers, or Board of Directors or by their respective successors and assigns. 15.02 Costs and Attorneys' Fees. In the event of any litigation or arbitration arising out of a breach or viola- tion of any of the provisions of this Master Declaration, the prevailing party shall be entitled to recover costs and expenses, including reasonable attorneys' fees, incurred in connection therewith. 15.03 Cumulative Remedies. The respective rights and remedies provided by this Master Declaration or by law or available in equity, shall be cumulative and the exercise of any one or more of such rights or remedies shall not preclude or affect the exercise, at the same or at different times, of any other such rights or remedies for the same or different violations, defaults or breaches or for the same or different failures of the Owners or others to perform or observe any provision of this Master Declaration. 15.04 Failure Not A Waiver, The failure of Declarant, the Board of Directors, the Master Association or its off- icers, to enforce any of the covenants, conditions or restrictions, limitations, reservations, easements, rights, rights-of-way, liens, charges or equitable servitudes con- tained in this Master Declaration shall not constitute a waiver of the rights to enforce the same thereafter, nor shall such failure result in or impose any liability upon the Declarant, 15.05 Suspension of Voting Rights. In the event any Owner shall fail for a period of more than forty-five (45) days to pay when due any Regular Assessment and/or any Special Assessment, said Owner shall not be entitled to vote upon any matter put to a vote at any regular or special meeting of the Master Association nor shall any consent of such Owner be considered in connection with any matter for which approval by vote or written consent may be required under this Declaration or under the By-Laws of the Master Association. For the purposes of this Section, the Master Association, its Board of Directors or a duly authorized designee of either shall, promptly following the expiration 73 ML:kew 06/06/89 ML971.0074.0.0 of the forty-fifth (45th) day of default in payment of any such Assessment or Assessments, notify or cause to be noti- fied said Owner in writing of such failure and cause a copy of said notice to be sent to the Secretary of the Master Association and to any Mortgagee known to the Master Associa- tion as the holder of any recorded first-lien Mortgage encumbering said Owner's Ownership Interest. 15.06 Disputes; Determination by the Board. Any dispute or question involving any action, omission, interpretation, application or enforcement of any of the provisions of this Master Declaration shall be determined promptly by the Board of Directors, who shall consider and weigh such written and such oral statements as may be submitted to the Board in connection therewith. Except with respect to a loss or forfeiture which may result from (i) a judgment or order of a Court of competent jurisdiction, (ii) an order or decision arising as a result of arbitration, or (iii) the exercise of the foreclosure provisions contained in Article 6 hereof for the enforcement of liens created to enforce the payment of Assessments duly levied hereunder, the rights of the Master Association and/or the Board of Directors to suspend the voting rights or otherwise discipline any Owner by reason of any breach of or default by such Owner in compliance with the provisions of this Master Declaration, the By-Laws and Articles of the Master Association and/or any rules and regulations adopted or amended from time to time by the Master Association and/or the Board of Directors to regulate and/or govern the use, maintenance, management and occupancy of all or any portion of the Overall Property (collectively the "governing instruments"), shall be limited so as to require the giving of reasonable notice to the Owner or Owners whose breach or default is in issue and an opportunity for such Owner or Owners to be heard by the Board of Directors before any decision to impose any monetary penalty, suspend the voting rights or otherwise discipline such Owner or Owners is reached. For the purposes of this Section, reasonable notice of the time and place of any meeting of the Board of Directors at which the issue of any such breach of or default by an Owner is to be heard shall mean (except in the event of circumstances likely to cause or result in serious injury to the health or safety to any resident or occupant within the Overall Property unless immediate cor- rective action is taken) not less than five (5) calendar days. Any decision made by the Board of Directors on any matter or issue brought before the Board of Directors for hearing pursuant to this Section shall be binding upon all Owners and Persons concerned. 74 ML:kew 06/06/89 ML971.0075.0.0 15.07 Enforcement of Bonded Obligations. In the event portions of any Community Common Area improvements of the Aviara Project have not been completed prior to the issuance of a final subdivision public report for the Project, Declarant may elect to assure (or cause any Builder required to complete any such Community Common Area improvements to be located within or built in connection with any Individual Project to assure) the lien-free completion of said Community Common Area improvements (i) by filing a bond as permitted by Section 11018.5(a)(2)(A) of the California Business and Professions Code which bond shall name the Master Association (and any Sub-Association if required) as obligee and commit the Declarant (or such Builder) to the lien-free completion of said Common Area as described in a planned construction statement attached to any such bond, with the following procedures to be followed, if necessary, to enforce the obligations of the Declarant (or any such Builder) and the surety under any such bond: (1) The Board of Directors shall consider and vote on the question of action by the Master Association to enforce the obligations under any such bond with respect to any Common Area improvement for which a Notice of Completion has not been filed within sixty (60) days after the completion date specified in the planned construction statement for that specific Common Area improvement provided, that if the Association has given an extension in writing for the completion of any such Common Area improvement, the Board of Directors shall consider and vote on the aforesaid question if a Notice of Completion for such specific common area improvement has not been filed within thirty (30) days after the expiration of any such extension; (2) In the event of (a) a decision by the Board of Directors not to initiate action to enforce the obliga- tion under any such bond or (c) the failure of the Board of Directors to consider and vote on the question of the enforcement of the obligations under any such bond, the Board shall cause a special meeting of the Members of the Master Association to be held not less than thirty- five (35) ?iays not more than forty-five (45) days after the receipt by the Board of Directors of a petition for the convening of such special meeting signed by five percent (5%) of the Owners entitled to vote. In the event of such special meeting, the vote of a majority of the voting power of the Master Association residing in Members other than the Declarant (and any such Builder) to take action to enforce the obligation under any such 75 ML:kew 06/06/89 ML971.0076.0.0 bond shall be deemed to be the decision of the Master Association and the Board of Directors shall thereafter implement said decision by initiating and pursuing appropriate action in the name of the Master Association or (ii) by such other alternative plan as may be approved by the California Department of Real Estate. 15.08 Enforcement by City. City, following a determination of the City Engineer or Director or Utilities and Maintenance that the Owners of any Lots, Units or Ownership Interests are in default of their duties and obli- gations to maintain common easements shown on any Final Map or the common facilities located therein in the manner herein described, shall have the right, but not the obligation or duty, to enter upon such common easements and to undertake any work necessary to maintain such common easements or common facilities, all for the account of and at the cost and expense of the lot owners. Provided, however, that prior to entering upon the common easements for the purpose of undertaking work necessary to maintain the common easements or common facilities, the City shall present to Declarant, the Master Association or any Sub-Association, as appropriate, a written notice which shall describe the nature of the default, shall set a date not less than 90 days from the date of the presentation of such notice within which such time the Declarant, Master Association or any Sub-Association may cure such default and shall specifically advise such entities that upon the failure to cure such default within the time frame set forth in the notice, the City may enter upon such common easements and perform such maintenance work to the common easements and common facilities, all for the account of and at the cost and expense of said entities as applicable. Provided further, that in the event that any such person or entity, following receipt of such notice, wishes to protest determination of such default, such person or entity shall be entitled to appeal in writing such determination to the City Council within ten (10) calendar days of the mailing of the notice, (a) In the event the City shall enter upon the common easements and undertake the work maintaining the common easements or the common facilities following a determination by the City that the Declarant, Master Association or Sub-Associations are in default of their duties and obligations, then each Owner shall be liable to and shall reimburse City his or her proportionate share of the costs associated with such default in accordance with Article 5, 76 ML:kew 06/06/89 ML971.0077.0.0 (b) In the event a Lot Owner shall fail to reim- burse City for his or her proportionate share of any costs incurred by the City in curing said default, then City shall be entitled to make such reimbursable costs a lien upon the Lot, Unit or Ownership Interest of the Owner benefitted by such work by recording a notice that it has incurred reimbursable costs under the terms of this Master Declaration in the Official Records of the San Diego County Recorder. In addition to stating that costs have been incurred by City under the terms of this declaration, such notice shall set forth the amount of such reimbursable costs, the date they became due and payable, and shall state that until paid such costs are paid. Moreover, in the event a the Owner of a Lot, Unit or Ownership Interest fails to reimburse the City for his or her proportionate share of any costs incurred by the City in curing said default, then City may, in addition to recording a lien against such Owners, Lot, Unit or Ownership Interest, file a legal action seeking recovery of such costs; provided that, if the City'is the prevailing party in such an action, then City shall be entitled, as part of the settlement or judgment entered in such action, to interest on such costs computed at the legal rate plus reasonable attorneys fees in an amount agreed to or fixed by the court. In addition to the foregoing, the City may seek equitable relief. (c) City's right to enforce the duties and obligations of Declarant, the Master Association and any Sub-Association shall not preclude the City from entering upon the common easements, performing any work necessary to maintain the common easements and common facilities located within the Project and to assess the Owners of any Lots, Units or Ownership Interest for the costs of such maintenance work, all in accordance with the provisions of any special assessment laws now or hereafter enacted by the State of California or City ordinance, and the provisions of this article shall not constitute a waiver of the City's rights pursuant to such special assessment laws. 15.09 Indemnification. To the extent not covered by insurance policies maintained by the Master Association and/or the Sub-Associations, as provided in Article 11 of this Master Declaration and the protection afforded to Owners and the City as named additional insureds under said policies, each Owner shall indemnify another Owner in the Master Association or Sub-Association, as appropriate, for 77 ML:kew 06/06/89 ML971.0078.0.0 the proportionate share for any liabilities for personal injury or property damage which arise out of or relate to the condition or the maintenance and repair of the common easements or the common facilities. Provided that, an Owner shall have no obligation to indemnify another Owner for any liability for personal injury or property damage arising out of the condition or the maintenance and repair of the common easements or the common facilities where such personal injury or property damage was caused by the negligence of such Owner or said Owner's agent or employee. The Master Association, Sub-Associations and all Owners shall jointly and severally hold the City, its officers, boards and commissions and members thereof, its employees and agents harmless and free from any and all liabilities for personal injury and property damage which might arise out of or relate to the condition or the maintenance and repa'ir of the common easements and common facilities, including, but not limited to, any liability for personal injury or property damage arising out of the negli- gence of the City, its officers, boards and commissions and members thereof, its employees and agents. Should City or any of its officers, boards and commissions and members thereof, its employees or agents be named in any suit or otherwise, whether the same be groundless or not, arising out of or related to the condition or maintenance and repair of the common easements and the common facilities, then the Master Association, Sub-Associations and Owners, as applic- able, shall defend the City, its officers, boards and com- missions and members thereof, its employees and agents, and shall indemnify them for any judgment or settlement rendered against them or any sums paid out in settlement or otherwise. ARTICLE 16 AMENDMENTS 15.01 Procedure. After the transfer of management and control of the Common Area to the Master Association in accordance with Section 4.03 hereof, any amendment to all or any portion of this Master Declaration shall require (a) the vote or written consent of seventy-five percent (75%) of the voting power of the Master Association (including the Declar- ant) together with (b) the vote or written consent of seventy-five percent (75%) of the voting power of the Master Association (excluding the Declarant), provided that (1) any prior written consent then required by Section 11018.7 of the California Business and Professions Code be first obtained, and (2) if the Declarant is still entitled to the three-to-one voting priority set forth in Section 2,03 of 78 ML:kew 06/06/89 ML971.0079.0.0 this Master Declaration, any amendment to all or any portion of this Master Declaration shall require the Approval of the Declarant. No amendment permitted under this Section shall be effective for any purpose unless and until the same has been (i) reduced to writing, (ii) signed by two (2) officers of the Master Association or a majority of the Board of Directors, each of whom shall certify said amendment was made in compliance with the provisions of this Article 16 and (iii) recorded in the Office of the County Recorder of San Diego County. Any amendment made in compliance with the provision of this Article shall be conclusive and presumed to be valid as to any person relying thereon in good faith and shall be binding upon every Owner and Ownership Interest, whether the burdens thereon are increased or decreased by such amendment and whether or not the Owner of each and every Ownership Interest consents to such amendment, 16.02 Amendment by Declarant, Prior to the transfer of management and control of the Common Area to the Master Association in accordance with Article 4,03 hereof and not- withstanding anything in this Master Declaration to the contrary. Declarant shall have the right to amend this Master Declaration at any time by recording a copy of such amendment in the Office of the County Recorder of San Diego County, provided that any prior written consent required by Section 11018,7 of the California Business and Professions Code be first obtained. 16.03 Amendment Affecting Obligation to Maintain Common Area, Notwithstanding anything in this Master Declaration to the contrary, any amendment to this Master Declaration which would modify the obligation of the Master Association to maintain the Master Common Area, the Assessment procedure set forth in this Declaration to assure said maintenance, or the right of the City to enter upon common easements shown on any Final Map to maintain or repair such easements or the common facilities located thereon shall not be effective unless the written approval of the City is first obtained and a copy thereof recorded in the office of the San Diego County Recorder, and no Amendment to this Master Declaration which would alter the obligations relating to the maintenance of the Trail Systeiji or other Improvements within or for the benefit of the Batic[uitos Lagoon without the approval of the California Coastal Commision. 16.04 Amendment to Eliminate Easements. This Master Declaration may not be amended to modify or eliminate any easements or rights herein provided, reserved, or established for the benefit of Declarant, its successors and assigns. 79 ML:kew 06/06/89 ML971.0080.0.0 without the prior written approval of Declarant, nor may this Section be amended without the prior written approval of Declarant and any attempt, act or purported amendment to do so shall be null, void and of no force or effect. In addition, this Master Declaration may not be amended (i) to modify or eliminate any easements or rights herein provided or reserved or established for the benefit of a Builder, or the Owners of any Non-Residential Lot or (ii) to reduce or delete the standards or specifications for the repair, and maintenance of Project Entries as described or set forth on the Master Maintenance Plan attached hereto as Exhibit "F" without the prior written approval of such Owner in any attempt, act or purported Amendment to do shall be null, void and of no further force or effect. ARTICLE 17 NOTICES Any notice to be given to an Owner, the Master Association or any Mortgagee under the provision of this Master Declaration shall be in writing and may be delivered as follows: (a) Notice to an Owner or to any Builder shall be deemed to have been properly delivered when delivered to such Owner's (whether or not Owner or Builder personally receives said notice) or when placed in the first-class United States mail, postage prepaid, to the most recent address furnished by such Owner or Builder in writing to the Master Association for the purpose of giving notice, or if no such address shall have been furnished, then to the street address of such Owner's Lot, Unit or other Ownership Interest. In the case of co-Owners, any such notice may be delivered or sent to any one of the co-Owners on behalf of all co-Owners and shall be deemed delivered on all such co-Owners. The affidavit of an officer or authorized agent of the Master Association declar- ing under penalty of perjury that a notice has been mailed to any Owner or Owners, to any Mortgagee or Mortgagees, or to all Members or all Mortgagees, to the address or addressess shown on the records of the Master Association, shall be deemed conclusive proof of such mailing, whether or not such notices are actually received. (b) Notice to the Master Association shall be deemed to have been properly delivered when placed in the first-class United States mail, postage prepaid, to the 80 ML:kew 06/06/89 ML971.0081,0.0 address furnished by the Master Association or the address of its principal place of business. (c) Notice to a Mortgagee (or its mortgage ser- vicing contractor) shall be deemed to have been properly delivered when placed in the first-class United States mail, postage prepaid, to the address furnished to the Master Association by such Mortgagee (or such contractor) for the purposes of notice or, if no such address is furnished, to any office of the Mortgagee in the County, or if no such office is located in the County, to any office of such Mortgagee, (d) Notice to Declarant shall be deemed to have been properly delivered when placed in the United States mail, postage prepaid and addressed: To: Aviara Land Associates Limited Partnership c/o Hillman Properties West, Inc, 7707 El Camino Real Carlsbad, California 92002 Attention: Mr, Larry Clemens With a copy to: Loeb and Loeb 1000 Wilshire Boulevard, 18th Floor Los Angeles, California 90017 Attention: Michael Langs, Esq, (e) Any notice so deposited in the United States mail shall be deemed delivered four (4) business days after such deposit. ARTICLE 18 TERM The covenants, conditions, restrictions, reserva- tions, easements and rights contained in this Master Decla- ration shall run with and benefit the land within the Project and each and every Ownership Unit therein and shall be binding upon each and every Owner, the Declarant, the Master Association, its Directors, officers and employees, and all of their respective successors and assigns and shall continue in full force and effect for a term of fifty (50) years from the date of recordation of this Master Declaration, after which time the same shall be automatically extended for five (5) successive periods of ten (10) years each unless, within 81 ML:kew 06/05/89 ML971.0082.0. 0 one (1) year prior to the expiration of the initial fifty (50) year term or any such ten (10) year extension period, a written agreement approved by seventy-five percent (75%) of the Owners shall be placed on record in the Office of the County Recorder of San Diego County, terminating the effec- tiveness of this Master Declaration. ARTICLE 19 ANNEXATION OF ADDITIONAL PROPERTY Additional real property and improvements (i.e.. Phase II and/or Phase III, etc) may be annexed to the Aviara Project and become subje'ct to this Master Declaration and the jurisdiction of the Master Association by either of the methods set forth below: 19.01 Annexation Pursuant to Approval. Upon vote or written assent of not less than sixty-six and two-thirds percent (66-2/3%) of the total votes residing in the Asso- ciation (excluding the Declarant and any Builder). Any person who is the owner of additional real property approved for annexation pursuant to this section who desires to have the same annexed to the Project and made subject to this Declaration and the jurisdiction of the Master Association may cause to be prepared and recorded in the Office of the San Diego County Recorder a Supplementary Declaration more particularly described in Section 19.03 of this Article. 19.02 Annexation Pursuant to General Plan. All or any part of the Balance of the Overall Property and Improvements now or hereafter located thereon and described in Exhibit "A" attached hereto may be annexed to the Project and become subject to the terms and provisions of this Master Decla- ration and to the jurisdiction of the Master Association without the approval, assent or vote of the Association or its members, provided that (i) any such annexation shall be made prior to the fifteenth (15th) anniversary of the original issuance of the most recently issued final subdi- vision public report for a Phase with an Individual Project, (ii) any such annexation will not result in a substantial increase in assessments against Owners of Lots, Units or other Ownership Interests within any Phase or Phases already a part of the Aviara Project, and (iii) a Supplementary Declaration more particularly describe(d in Section 19.03 of this Article shall be recorded in the Office of the County 82 ML:kew 06/06/89 ML971.0083.0.0 Recorder for San Diego County covering all or any part of the real property described in Exhibit "A" attached hereto. 19.03 Supplementary Declaration. Annexations of addi- tional real property and improvements authorized by this Article shall be made by and become effective upon recording in the Office of the San Diego County Recorder, a Supplemen- tary Declaration, or similar instrument, describing the real property and improvements to be annexed and extending the common plan of this Declaration to such additional real property and improvements. Such Supplementary Declaration shall be executed by the Declarant, or any other Owner of the additional real property and improvements to be annexed. Such Supplementary Declaration may contain such additions and modifications of the covenants, conditions and restrictions contained in this Master Declaration as may be reasonably necessary to reflect the different character, if any, of the real property, improvements and facilities to be annexed provided (i) that such additions and modifications are not inconsistent with the general plan of this Master Declaration provided, however, that no such Supplementary Declaration shall modify, revoke or supersede any of the easements, rights and covenants reserved and established in this Dec- laration with respect to Phase I of the Project or any other additional real property and improvements already annexed to and made a part of the Aviara Project with respect to which escrows for the sale of any Lots, Units or other Owners of Interests have already closed. 19.04 Community Common Area. Any portion of the property being annexed that is intended or required to be Community Common Area shall be conveyed to the Community Association prior to the close of the first sale of the Lot in any sub- division in the Annexed Property to an Owner, other than Declarant, a Builder or an Apartment Owner upon the annex- ation of any such property. 19.05 De-annexation. Declarant may delete all or any portion of any property annexed from the coverage of this Master Declaration and rescind any Supplementary Declaration, provided Declarant is the sole Owner of all of the real property described in the Supplementary Declaration to be rescinded. Such deletion shall be effective upon the recordation of a "Notice of Deletion of Territory," signed by Declarant, in the same manner as the Supplementary Decla- ration to be rescinded was recorded. 83 ML:kew 05/06/89 ML971,0084,0,0 ARTICLE 20 GENERAL PROVISIONS; INTERPRETATION The provisions of this Master Declaration shall be liberally construed to effectuate its purpose of creating the common plan for the phases development of the Aviara Community as described in the recitals to this Master Declaration. The headings of the several Articles, Sections and paragraphs of this Master Declaration are inserted solely for the convenience of reference and are not a part of nor intended to govern, limit or aid in the construction of any term or provision of this Declaration. No failure to enforce any one or more of the provisions hereof shall constitute a waiver of the right thereafter to enforce any of said pro- visions or any other proVisions hereof. In the event any term, covenant, provision. Article, section, paragraph or other element contained in this Master Declaration is for any reason held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect, alter, modify or impair in any manner whatsoever any other term, covenant, provision. Article, section, paragraph or other element contained in this Master Declaration, the provisions of which shall continue to be valid and enforce- able as if such invalid, illegal, or unenforceable provision were not contained herein. Unless the context otherwise requires, the singular number includes the plural, the masculine gender includes the feminine and/or neuter and the neuter gender includes the masculine and/or feminine. In the event of any inconsistency or conflict between (i) the rights, powers, easements, authority or liens created, reserved and established for the benefit of the Declarant, the Master Association, its Board, the Architectural Control Committee or any Builder, Owner or Person under the terms and provisions of this Master Declaration or the By-Laws and Articles of the Master Association (the "Master Documents") and (ii) the terms provisions, powers, rights, easements, liens, remedies, decisions, votes, approvals or agreements provided by, described in or arising under any Individual Project Declaration or any other documents prepared and or recorded in connection with any Individual Project (the "Subordinate Documents") then, in each such event, the rights, powers and authorities of the Declarant and the Master Association created, reserved, established and/or exercised under the Master Documents shall control, be 84 ML:kew 06/06/89 ML971,0085.0,0 superior to, and unaffected by any such inconsistency, conflict or the exercise of any rights, liens, powers or authority provided by, described in or arising under any such Subordinate Documents. IN WITNESS WHEREOF, the Declarant has executed this Master Declaration of Covenants, Conditions and Restrictions for the Overall Property as of the day and year first above written. AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP By Its General Partner By Title By Title 85 ML:kew 06/06/89 ML971.0086.0.0 STATE OF ) ) SS, COUNTY OF ) On , before me, the under- signed, a Notary Public in and for said State, personally appeared and , personally known to me or proved to me on the basis of satisfactory evidence to be the persons who executed the within instrument respectively as the and the on behalf of the corporation therein named, and acknowledged to me that such corporation pursuant to its by-laws or a resolu- tion of its board of directors executed the within instrument on behalf of the partnership therein named and that such partnership executed the within instrument. WITNESS my hand and official seal. Notary Public THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS STATE OF CALIFORNIA, THOSE PORTIONS OF SECTIONS 22, 26, 27, 28, 33, AND 34 ALL IN TOWNSHIP 12 SOUTH. RANGE 4 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID SECTION 34 AS SHOWN ON RECORD OF SURVEY MAP NO. 10774 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY OCTOBER 30, 1986 AS FILE NO. 86-494180; THENCE ALONG THE EASTERLY LINE OF SAID SECTION, SOUTH 00»32'01" WEST 426.75 FEET; THENCE LEAVING SAID EASTERLY LINE, THE FOLLOWING COURSES: NORTH 83*55'00" SOUTH 67'22'00" SOUTH 39'25'00" SOUTH 49*15'GO" NORTH 58*00'00" NORTH 05'14'00" NORTH 74'45'00" SOUTH Sg'OO'OO" SOUTH 22*30'00" SOUTH 6r54'00" NORTH aS'OO'OO" SOUTH 52*50'00" SOUTH 54*10'00" NORTH 54M0'00" NORTH 35*30'00" NORTH 20*30'00" SOUTH 25*30'00" SOUTH 33*30'00" SOUTH 77*30'00" SOUTH 75*58'00" NORTH 73*50'00" NORTH 74*10'00" NORTH 73*16'26" SOUTH 78*00'00" TO THE BOUNDARY THENCE ALONG SA WEST WEST EAST WEST WEST EAST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST WEST LINE 154.81 140.00 163.00 119.00 132.00 201.00 193.00 156.00 88.00 195.00 120.00 318.00 148.00 370.00 141.00 128.00 223.00 146.00 358.00 42.00 99.00 190.00 174.03 447.00 OF SAI FEET FEET FEET FEET FEET FEET FEET FEET FEET; FEET FEET FEET FEET FEET FEET FEET FEET FEET FEET FEET; FEET; FEET FEET FEET SOUTH SOUTH SOUTH NORTH NORTH NORTH NORTH NORTH SOUTH NORTH SOUTH SOUTH SOUTH NORTH NORTH NORTH SOUTH SOUTH SOUTH NORTH 51*22'00* 60*44'00' 21*ir00' 89*45'00' 72*30'00* 51*53'00' 89*42'00' 75*10'00' 8r22'00" 82*00'00' oroo'oo' 28'00'00' 79*35'00' 74*30'00' irio'oo' 85*00'00' 10*45'00' 55'30'00' 55*10'00' 83*56'00" WEST 518.00 FEET WEST 295.00 FEET WEST 214.00 FEET WEST 186.00 FEET WEST 187.00 FEET WEST 63.00 FEET; WEST 218.00 FEET WEST 113.00 FEET WEST 37.00 FEET; WEST 114:00 FEET EAST 36.00 FEET; EAST 35.00 FEET; WEST 155.00 FEET WEST 86.00 FEET; ' EAST 110.00 FEET ' WEST 71.00 FEET; ' EAST 53.00 FEET; ' WEST 52.00 FEET; ' WEST 167.00 FEET WEST 117.00 FEET; NORTH 79*50'00" NORTH 68*56'02 NORTH 84*00'00 NORTH 83*00'00 D RECORD OF SURVEY MAP; ID BOUNDARY LINE, THE FOLLOWING COURSES: WEST 147.00 FEET; WEST 346.00 FEET WEST 124.00 FEET WEST 123.73 FEET AMENDED 1170624 EXHIBIT A AVIARA LEGAL DESCRIPTION OF OVERALL PROPERTY 1 OF 2 NORTH NORTH SOUTH SOUTH NORTH NORTH NORTH NORTH NORTH NORTH NORTH SOUTH SOUTH NORTH NORTH SOUTH SOUTH SOUTH SOUTH SOUTH SOUTH SOUTH SOUTH NORTH NORTH FEET 32*17' 00*43' 89*08' 83*50' 46*13' 14*41' 44* ir 17*22' 03*51' 00*34' 01*49' 01*36' 87*30' 00*12' 00*41' 00*33' 89*19' 89*16' 89*16' 44*39' 38*15' 24*07' 48*19' 88*48' 88*55' TO THE 46" WEST 21" WEST 32" EAST 41" EAST 35" EAST 15" WEST 08' 08' 41' 18' 19' 47' WEST WEST EAST EAST WEST EAST 08" EAST 09" WEST 54" WEST 25" WEST 14" EAST 26" EAST 42" EAST 44" WEST 14" WEST 12" WEST 47" EAST 10" WEST 25" WEST POINT OF 561.56 FEET; NORTH 69*15'21" WEST 228.23 FEET; 788.21 FEET; NORTH 00*30'45" EAST 1357.73 FEET; 1358.19 FEET; NORTH 23*18'51" EAST 155.92 FEET; 182.99 FEET; NORTH 63*51'06" EAST 118.55 FEET; 66.99 FEET; NORTH 2r20'05" EAST 79.07 FEET; 271.95 FEET; NORTH 25*25'20" WEST 112.93 FEET; 189.02 FEET; NORTH 36*54'2r' WEST 80.99 FEET; 96.53 FEET; NORTH 07*57'57" WEST 108.47 FEET; 180.95 FEET; NORTH 35*35'33" 2716.14 FEET; SOUTH 85*58'38 331.07 FEET; SOUTH 86*57'12" 330.69 FEET; SOUTH 00*06'50" 662.65 FEET; SOUTH 87*32'14" 1328.52 FEET; SOUTH 85*58'17 2434.07 FEET; SOUTH 89*28'30 2491.10 FEET; SOUTH 00*42'22' 1334.44 FEET; SOUTH 00*21'21' 252.98 299.95 109.07 136.45 174.68 507.55 770.87 1321.10 FEET FEET FEET FEET FEET FEET FEET FEET; SOUTH SOUTH SOUTH SOUTH SOUTH SOUTH NORTH AND 00*43'19" 25*48'10" 40*5r44" 08*46'19" 15*13'16" 24*29'17" 00*22'48" WEST 142.04 FEET; ' EAST 1318.67 FEET; EAST 660.57 FEET; WEST 1340.75 FEET; EAST 662.56 FEET; • EAST 659.12-FEET; ' EAST 1370.33 FEET; • EAST 2294.99 FEET; ' EAST 328.99 FEET; WEST 392.93 FEET; EAST 163.03 FEET; WEST 501.68 FEET; WEST 168.00 FEET; EAST 128.95 FEET; EAST 825.89 FEET; WEST 658.36 FEET; SOUTH 00*42'22" EAST 655.68 BEGINNING. AMENDED 1170624 AVIARA EXHIBIT A LEGAL DESCRIPTION OF OVERALL PROPERTY 2 OF 2 Lane MF I .A I .( 32 |32f 19 — 32A PR Y 21 X ! MF ; ' / f ! ^ 1 L < ^- / ^ /17 1 . MF L < ^- / ^ /17 1 . MF A 1 30 MF \ 1 \^ U. I NARgClGC SUMMARY 1 »' ItUtOLI KAMNWa MIA Sa6U. ACHt* OWILLINC UNITt 3 S.4 27 4 21.8 103 8 27.3 78 13 ee.s 72 14 20.8 82 24 S4 183 2S 18.2 48 27 21.2 S4 28 34.S 74 2« 44 89 SUBTOTAL 314.8 787 TOTALS 1015 ACRES 2836 UNITS AVIARA 1 " IWULTH KAMNMO AMA OAO$t. ACRfS* OWILUMG MNTt 8 23.8 188 7 30.3 240 9 32.5 100 13 28.1 3S1 IS 22.2 192 18 8.2 121 17 24.7 19S IS 18.5 82 18 8.3 74 20 8.8 34 21 2S.9 90 22 28 97 28 7S.2 189 30 «(.S 138 SUBTOTAL 403 2049 *I1CUMC« UTUTT COWout COMMERCIAL n.AHMMO ARIA GROIt ACMI* CN iiiiSMHWtaaB COWUCNCIAL 23 13.S CH nilil MtOIIT 2 27.8 CV visnoa COMUCMCIAL 11 2.4 SUBTOTAL 43.4 OPEN SPACE OC COMU 1 171.5 P Mm 32 24.3 P« .AM MUBVf 32A S.7 RCC MCMATtOH 10 8.2 UTUTf COAIKOW 27.2 SUBTOTAL a».i COMMUNITY s 8 12.4 oc lOAT CAM/ lOMMCN 328 4.S SUBTOTAL 18.9 EXHIBIT B DEVELOPMENT PLAN AVIARA DEVELOPMENT PLAN PHASE I EXHIBIT 0 ML:bo 06/06/89 ML971.0088.0.0 Legal Description of Overall Property Subject to Annexation [TO BE ADDED BY AMENDMENT TO SHOW ALL PROPERTY ENCUMBERED BY MASTER CC&Rs WHICH IS NOT PART OF DRE PHASE 1 BUT IS SUBJECT TO ANNEXATION PURSUANT TO ARTICLE 19 OF THE MASTER CC&Rs] EXHIBIT "D' ML:bo 06/06/89 ML971.0089.0.0 DRE Phase 1 Final Type Planning Area Lot No. Map No. of Lot Acreage [TO BE ADDED BY AMENDMENT AFTER DRE BUDGET APPROVAL AND THEREAFTER BY SUPPLEMENTARY DECLARATION PRIOR TO EACH ANNEXATION OF DRE PHASE! EXHIBIT "E' This is a reduced copy of the Master Maintenance Plan approved by the City. A full size copy of the Master Maintenance Plan (sometimes referred to as Master Association Maintenance Plan) is on file in the office of the Master Association. AVIARA MEDIUM [ i NATIVE MASTER ASSOCIATION MAINTENANCE AREAS EXHIBIT F JUNE 20. tM9 SLOPES TO BE MAINTAINED BY MASTER ASSOCIATION Level of Maintenance: Medium KEY MAP AVIARA MASTER ASSOCIATION MAINTENANCE AREAS Poinsettia Lane Slopes (Poinsettia Lane Section of CT 85-35) V EXHIBIT F- COMMUNTTY TRAIL SYSTEM AVIARA '^'^.^.^A'^ NORTH SHORE COASTAL ACCESS TRAL DEVELOPMENT PLAN - TRAIL SYSTEM V EXHIBIT G JUNE 20. i>a> r ML:bo 06/06/89 ML971.0093.0.0 Schedule of Acreage for Lots Prior to Close of Escrow for Sale of Lots or Units Pursuant to a Public Report Planning Type Percentage of Area Lot No, Tract No. of Lot Acreage Total Acreage (TO BE ADDED BY AMENDMENT WITH CALCULA- TIONS BASED UPON APPLICABLE FINAL MAP DEMINITIONS]. EXHIBIT "H llrjll ML:bo 06/06/89 ML971.0094.0.0 BUILDER ARCHITECTURAL CONTROL APPROVAL To: 'ZII^IIIIIZIIIIIZIZIIIIIIZZZIIIL ("Builder") The Regulated Improvements proposed by the Builder named above to be developed by said Builder within Planning Area of the Aviara Country Club and Resort (the "Project") are shown in those certain plans, specifications, drawings, maps. Site Development Plans and and approvals dated or described as follows: The Regulated Improvements as described in the plans, draw- ings and approvals identified above are hereby approval from the provisions of Article 8 of the Master Declaration of Covenants, Conditions and Restrictions for the Project, This approval applies only to the Regulated Improvements described in the plans, drawings and approvals identified above. This exemption is personal to the Builder identified above and invalid if assigned. This approval may not be relied upon by any person or persons other than the Builder identified above and any lender holding an Institutional Mortgage recorded against the land and Regulated Improvements to be constructed by Builder within said Planning Area. Dated: AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP By: Title: "Declarant" EXHIBIT "I'