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HomeMy WebLinkAboutCT 92-06; Canyon Pacific; Tentative Map (CT) (7)\\ RECORDING REQUESTED BY: iUiCORDBD RECTOS! OP FIHST .U5ERICAN T1TTJD OOiaffiaOUL/IHDDSTHHl 2134 AFTER RECORDING MAIL TO: Pettis, Tester, Kruse & Krinsky P.O. Box 19766Irvine, California 92715 Attention: Dorothy A. Urbanec DOC Jj 1993-0807536 Jl-DEC-1993 11=07 AHo\ OfFICIflL RECORDS SftN DIEGO COUHTY RECORDER'S OFFICEEVANS, cDUHiy HF»J1.DO (Space Above Line For Recorder's Use Only) DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS CANYON PACIFIC AT CARLSBAD OAKS BUSINESS CENTER SAN DIEGO COUNTY, CALIFORNIA Table of Contents ARTICLE I - DEFINITIONS ............................................ 1 Section 1.01 - Additional Parking Spaces ................................. 1 Section 1.02 - Allowable Charges ..... . ............................... I Section 1.03 - Architectural Committee .................................. 2 Section 1.04 - Architectural Standards ........ ........................... 2 Section 1.05 - Articles and Bylaws ..................................... 2 Section 1.06 - Assessments ......................................... 2Section 1.07 - Association .......................................... 3 Section 1.08 - Association Common Area ................................. 3 Section 1.09 • Association Common Area Improvements ....................... : 3 Section 1.10 - Association Management Documents ........................... 3 Section 1.11 - Association Property .................................... 3 Section 1,12 - Association Rules ...................................... 3 Section 1.13 -Board ............................................. 3 Section 1,14 - Building Structure ...................................... 3 Section 1.15 - California Statutes ..................................... . 3 Section 1,16 - Canyon Pacific ......................................... 3 Section 1.17 - Carlsbad Oaks Business Center .............................. 3 Section 1,18 - City .............................................. 3 Section 1.19 - Close of Escrow ....................................... 3 Section 1.20 - Combined Property Interest ................................ 4Section 1.21 - Common Area ........................................ 4 Section 1.22 - Common Expenses ........ ............................. 4 Section 1.23 - Common Facilities ..... . ............................... 5 Section 1.24 - Condominium ........................................ S Section 1.25 - Condominium Building ................................... 5 Section 1.26 - Condominium Common Area ............................... 5 Section 1.27 - Condominium Project .................................... 6 I }I Section 1.28 - County 6 Section 1.29 - Covered Property 6 Section 1.30 - Declarant 6Section 1.31 - Declaration 6Section 1.32 - Easement User 6 Section 1.33 - Exclusive Use Common Area 6Section 1.34--Exhibit. 6Section 1.35 - Improvement 7 Section 1.36 - Lot 7 Section 1.37 - Lot Area 7 Section 1.38 - Master Association 8Section 1.39 - Master Declaration 8 Section 1.40 - Member 8Section 1.41 - Mortgage and Mortgagee 8Section 1.42 - Nonexclusive Use Common Area 8 Section 1.43 - Official Records 8Section 1.44 - Owner 8 Section 1.45 - Pro Forma Operating Budget 8Section 1.46 - Public Agency 8 Section 1.47 - Separate Interest 8Section 1.48 - Subordinate Association 9 Section 1.49 - Subordinate Association Property . 9Section 1.50 - Subordinate Declaration 9Section 1.51 - Supplemental Declaration 9 Section 1.52 - Unit 9 ARTICLE n - THE ASSOCIATION 10Section 2.01 - General Duties and Powers 10 Section 2.02 - Power to Grant Rights 10Section 2.03 - Membership 11Section 2.04 - Transfer .11 Section 2.05 - Delegation of Membership Rights 11... Section 2.06 - Classes of Membership 11Section 2.07 - Voting Power 11Section 2.08 - Voting Rights 11Section 2.09 - Approval of All Members 12Section 2.10 - Certificate Evidencing Approvals 12 ARTICLE m - ASSESSMENTS 12 Section 3.01 - Agreement to Pay 12Section 3.02 - Collection and Disbursement 12Section 3.03 - Maximum Assessments 12 Section 3.04 - Assessment Allocation 13Section 3.05 - Certificate of Payment 14Section 3.06 - Exempt Property 14Section 3.07 - Date of Commencement 14Section 3.08 - No Offsets 14 Section 3.09 • Reduction and Abatement 15Section 3.10 - Delinquency 15 Section 3.11 - Personal Obligation; Lien 15 Section 3.12 - Not Subject to Lien 15 Section 3.13 - Foreclosure Sale 15 Section 3.14 - Subordination of Assessment Liens 16 Section 3.15 - Nondisturbance of Tenancy 16 ARTICLE IV - ARCHITECTURAL CONTROL 16 Section 4.01 - Architectural Committee 16 ARTICLE VI - LIMITATION UPON THE RIGHT TO PARTITION AND SEVERANCE 24 Section 6.01 - No Partition 24 Section 6.02 - No Severance 24 Section 6.03 - Proceeds of Partition Sale 24 ARTICLE Vn - REPAIR AND MAINTENANCE 24 Section 7.01 - By Association 24 Section 7.02 - By Owner 25 Section 7.03 - Implementation of NPDES 25Section 7.04 - Repair of Damage 26 Section 7.05 - Noncompliance by Owner 26 Section 7.06 - Transfer of Maintenance Obligation . 26 Section 7.07 - Noncompliance by Subordinate Association 26 ARTICLE VIE - EASEMENTS AND RIGHTS 27 Section 8.01 - Nature of Easements ,. 27 Section 8.02 - Oil and Mineral Rights ." 27 Section 8.03 - Easements for Construction and Marketing Activities 27 Section 8.04 - Easements for Owners and Easement Users 28 Section 8.05 - Easements for Association 28Section 8.06 - Utilities and Cable Television 29 Section 8.07 - Public Bicycle and Pedestrian Trails 29 Section 8.08 - Subordinate Association Rights 29 Section 8.09 - Subordination 29Section 8.10 - Delegation of Use 30 Section 8.11 - Waiver of Use 30 ARTICLE IX - USE RESTRICTIONS 30 Section 9.01 - PermittedVProhibited Uses 30 Section 4.02 - Architectural Standards 17Section 4.03 - Functions of Architectural Committee 17 Section 4.04 - Approval 17Section 4.05 - Changes in Tenant Improvements and Use 18 Section 4.06 - Nonliability for Approval 20 Section 4.07 - Appeal 21Section 4.08 - Evidence of Approval 21 Section 4.09 - Performance Dates 21 Section 4.10 - Nonconformity 22 | f- Section 4.11 - Variances 22 _Section 4.12 - Creation of Condominium Projects 23 '« Ig Section 4.13 - Reconstruction of Condominiums 23 Section 4.14 - Control in Master Association 2$ _ W ARTICLE V - INSURANCE 23 Section 5.01 - Obligation to Insure 23 Section 5.02 - Waiver by Owners 23 31 S O moo JOin om 3J BO z -< o m 33 i ffe Section 9.02 - Signs 30 Section 9.03 - Nuisance 30 Section 9.04 - Temporary Structures 31 Section 9.05 - Use of Common Area 31 Section 9.06 - Animals „ 31 Section 9.07 - Restrictions on Drilling Operations 31 Section 9.08 - Unsightly Items 31 Section 9.09 - Antennae; Roof Structures 31Section 9.10 - Drainage 32 Section 9.11 - Leases 32Section 9.12 - View 32 Section 9.13 - Subordinate Association Use Restrictions 32 ARTICLE X - DESTRUCTION OF IMPROVEMENTS 32 Section 10.01 - Definitions 32Section 10.02 - Board Action 33 Section 10.03 - Reconstruction 33 Section 10.04 - Proceeds of Insurance 34 Section 10.05 - Reconstruction Assessments 34 Section 10.06 - Compliance with Plans . . . 34 Section 10.07 - Distribution of Insurance Proceeds 34 Section 10.08 - Payment of Mortgagees 34 ARTICLE XI - EMINENT DOMAIN 34Section 11.01 - Definition of Taking 34 Section 11.02 - Representation by Board 35 Section 11.03 - Award 35 Section 11.04 - Inverse Condemnation 35 ARTICLE Xn - MERGERS, ANNEXATIONS AND DEANNEXATIONS 35 Section 12.01 - Mergers or Consolidations 35 Section 12.02 - Deannexation 35 Section 12.03 - Severance of a Lot 35 Section 12.04 - Annexation Pursuant to Approval 36 ARTICLE Xffl - MORTGAGEE PROTECTION 36 Section 13.01 - Priority of Mortgage Lien .36 Section 13.02 - Curing Defaults 36 Section 13.03 - Conflicts 36 ARTICLE XIV - GENERAL PROVISIONS ...!."...."...... 36 Section 14.01 - Enforcement 36 Section 14.02 - No Waiver 37 Section 14.03 - Cumulative Remedies 37 Section 14.04 - Scverability 37 Section 14.05 - Term 37 Section 14.06 - Construction 37 Section 14.07 - Singular Includes Plural 37 Section 14.08 - Nuisance 37 Section 14.09 - Attorneys' Fees 38 Section 14.10 - Notices , 38Section 14.12 - Effect of Declaration 39 Section 14.13 - Personal CovenantSection 14.14 - Nonliability of Officials Section 14.15 - Construction By DeclarantSection 14.16 - Special RightsSection 14.17 - Inapplicability to Government Property ARTICLE XV - AMENDMENT PROVISIONSSection 15.01 - Vote of AssociationSection 15.02 - Approval by Declarant and CitySection 15.03 - Percentage of Voting Power Required ARTICLE XVI-RIGHTS OF CITY Section 16.01 - Performance Section 16.02 - NoticeSection 16.03 - Payment of Costs Section 16.04 - Amendment, Deannexation and TerminationSection 16.05 - Refusal of the CitySection 16.06 - Conflict Exhibit A - Parking Space FormulaExhibit B - Exclusive Use Common Area Easement ?: DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS CANYON PACIFIC AT CARLSBAD OAKS BUSINESS CENTER SAN DIEGO COUNTY, CALIFORNIA THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (the "Declaration") is made this 26th day of August, 1993, by B. W. PACIFIC PARTNERS, a California limited partnership (the "Declarant"). BBCI1ALS A. Declarant is the fee owner of certain real property (the "Covered Property") located in the City of Carlsbad, County of San Diego, State of California, and described as Lots 1 to 9, inclusive, ofCity of Carlsbad Tract No. 92-06 in the County of San Diego, State of California, as per map thereof No. 13050 filed in the Office of County Recorder of San Diego County on August 26, 1993. Said tract shall hereinafter be referred to as "Tract No. 92-06." B. It is the desire and intention of Declarant to create a planned development in accordance with Section 135 l(k) of the California Civil Code and to establish covenants, conditions, restrictions, rights, easements, liens and charges which will constitute a general scheme for the management, use,occupancy and enjoyment of the Covered Property, all running with the Covered Property for the purpose of enhancing and protecting the value, desirability and attractiveness of the Covered Property andenhancing the quality of life within the Covered Property. All terms used in these Recitals shall mean the same as such terms are hereinafter defined in this Declaration unless the context clearly indicates otherwise. C. All persons who purchase Combined Property Interests within the Covered Property shall be Owners and Members. : NOW, THEREFORE, Declarant hereby covenants, agrees and declares that all of foe Covered Property shall be held and conveyed subject to the following covenants, conditions, restrictions,rights, easements, liens and charges which are hereby declared to be for the benefit of said interests and shall be enforceable equitable servitudes and shall inure to the benefit of and bind all Owners inaccordance with California Civil Code Section 1354 and shall be binding upon all parties having or acquiring any right or title in said interests or any part thereof, and shall inure to the benefit of each Owner thereof and are imposed upon said interests and every part thereof as a servitude in favor of each and every of said interests as the dominant tenement or tenements. ARTICLE I DEFINITIONS Unless the context clearly indicates otherwise, the following terms used in this Declaration are defined as follows: Section 1.01 - Additional Partine Spaces. "Additional Parking Spaces" shall mean those additionalparking spaces created by an Owner pursuant to the Section entitled "Changes in Tenant Improvements and Use" of the Article entitled "Architectural Control" of this Declaration. Section 1.02 - Allowable Charges. "Allowable Charges" shall mean the costs, late. charges and interest in the amounts permitted by Section 1366(d) of the California Civil Code which may be recovered by theAssociation when any Assessment becomes delinquent which, as of the date hereof, permits (I) reasonable £ 5 1 DinQO 31ino OOc O m i'T greater, and (3) interest on all sums imposed in accordance with this Section, including the delinquent Assessment, reasonable costs of collection and late charges, at an annual percentage rate not to exceed twelve percent (12%) interest, commencing not sooner than thirty (30) days after the Assessment becomes due. The Association shall be exempt from compliance with the interest rate limitations imposed under Article XV of the California Constitution until and unless Section 1366(e) of the California Civil Code is amended to provide otherwise. Section 1.03 - Architectural Committee. "Architectural Committee" shall mean the committee or committees provided for in the Article hereof entitled "Architectural Control." Section 1.Q4 - Architectural Standards. "Architectural Standards" shall mean the standards, guidelines andrules adopted and promulgated pursuant to the Article entitled "Architectural Control" of this Declaration. Section 1.05 - Articles and Bylaws. "Articles" and "Bylaws" shall mean the Articles of Incorporation and Bylaws of the Association as the same may from time to time be duly amended. Section L06- Assessments. "Assessments" shall mean each of the charges levied by the Board pursuantto the provisions of the Association Management Documents for the purposes indicated below: (a) "Cable Television Service Assessment" for cable television services which may be levied against an Owner who has subscribed for such services; (b) "Capital Improvement Assessment" levied against each Owner in any calendar yearapplicable to that year only for the purpose of defraying, in whole or in part, the cost of any installation, construction or replacement of a described capital Improvement upon the Common Area to the extent thesame is not covered by Reconstruction Assessments, including the necessary fixtures and personal property related thereto; (c) Parking Space Assessment levied against a particular Owner to cover the portion of the Common Expenses attributable to Additional Parking Spaces created by, or at the request of, such Ownerpursuant to the Section entitled "Changes in Tenant Improvements and Use" of the Article entitled "Architectural Control" of this Declaration; (d) "Penalty Assessment" levied against an Owner as a monetary penalty as a disciplinary measure for failure or such Owner to comply with the provisions of the Association Management Documents or as a means of reimbursing the Association for costs incurred by the Association in the repair of damage to Common Area that is being maintained by the Association pursuant to the provisionsof this Declaration for which the Owner was allegedly responsible or bringing such Owner and his Combined Property Interest into compliance with the provisions of the Association Management Documents; (e) "Reconstruction Assessment" levied against each Owner to cover the cost to the Association for the repair, replacement or reconstruction of any portion or portions of the Insured Improvements pursuant to the provisions of the Article entitled "Destruction of Improvements" of this Declaration; (f) "Regular Assessment" levied against each Owner for such Owner's proportionate share of the estimated Common Expenses for the forthcoming fiscal year; and (g) "Special Assessment* levied against all Owners to cover the cost of any action or undertajdng on behalf of the Association which is not specifically covered under any other Assessment. Inthe event the Association undertakes to provide materials or services which benefit a particular Owner, such Owner in accepting such materials and services agrees that the cost thereof shall also be a Special *Ma Assessment In the event a Supplemental Declaration indicates that special services or benefits are to beprovided to one or more but less than all Owners, the cost thereof shall also be a Special Assessments apportioned to such Owners all as more particularly set forth in this Declaration or in such Supplemental Declaration. Section 1.07 - Association. "Association" shall mean Canyon Pacific Association, a nonprofit mutual benefit corporation incorporated under the laws of the State of California, its successors and assigns, for the purpose of managing the Covered Property. Section 1.08 - Association Common Area. "Association Common Area" shall mean the portions of the Common Area other than Exclusive Use Common Area that are designated by the Association from time to time for the exclusive use of the Association or any designees of the Association for purposes that are consistent with the management and operation of the Covered Property (i.e.. office facilities, manager's living quarters, storage rooms or areas, utility installations and structures containing utility installations and control panels). Section yp - Association Common Area Improvements. "Association Common Area Improvements" shall mean the Improvements upon the Association Common Area. Section 1.10 - Association Management Documents. "Association Management Documents" shall mean the Articles, Bylaws, Architectural Standards, Declaration, Supplemental Declaration and the Association Rules and any amendments to any of the foregoing. Section l.ll - Association Property. "Association Property" shall mean all real property and the Improvements thereon owned in fee by the Association, there is no Association Property within the Covered Property as of the recordation of this Declaration. Section \.\2 - Association Rules. "Association Rules" shall mean rules adopted, amended and repealedfrom time to time by the Board pursuant to the Article entitled "Discipline of Members" of the Bylaws. Section 1.13-Board. "Board" shall mean the Board of Directors of the Association. Section >44 - Building Structure. "Building Structure" shall mean any building or enclosed structure constructed upon a Lot from time to time with the approval of the Architectural Committee and the fixtures and appurtenances attached thereto. Section 1.1S - California Statutes. "California Statutes" (Sections of the California Civil Code, Business and Professions Code, Code of Civil Procedure or Corporations Code) when referenced in any of the Association Management Documents shall mean each such statute, any amendments thereto or any successor statute thereof. Section 1.16 - Canyon Pacific. "Canyon Pacific" shall mean the portion of Carlsbad Oaks Business Center that is encumbered by this Declaration. Section 1.17 - Carlsbad Oaks Business Center. "Carlsbad Oaks Business Center" shall mean the property encumbered by the Master Declaration. SectionJ48 - City. "City" shall mean the City of Carlsbad, California, a municipal corporation of the State of California. Section 1.19 - Close of Escrow. "Close of Escrow" shall mean the date of the recordation in the Official Records of the conveyance of a Combined Property Interest by Declarant within the Covered Property. (0 moO anmo am 3! O Oc •< m 30 XN FK£ gection 1.20 - Cpmbined Property Interest. "Combined Property Interest" as to the Covered Property described in paragraph A of the Recitals shall mean the Separate Interest of an Owner in any of Lots 1 to 8, inclusive of Tract No. 92-06 together with such Owner's fractional undivided interest as a tenant in common in Lot 9 of Tract No. 92-06 and any easements appurtenant thereto. Said fractional undivided interest in common of each of the Owners who own the Separate Interests described in paragraph A of the Recitals shall be a one-eighth (l/8th) interest. Such fractional undivided interest of each Owner and such easements that are appurtenant to the Separate Interest shall be described in the instrument conveying the Separate Interest to such Owner. As to any property that has been annexed to the plan of this Declaration pursuant to the provisions of the Section entitled "Annexations" of the Article entitled "Mergers,Annexations and Deannexations" of this Declaration, "Combined Property Interest" shall mean as such term is defined in the annexation document recorded in the Official Records by which such property was annexed to the plan of this Declaration. gectipn 1.21 - Common Area. "Common Area" shall mean the portion of the Covered Property that is owned in fee or by easement by the Association or in common by the Owners of the Separate Interestswho possess appurtenant rights to the beneficial use and enjoyment thereof. The Common Area within the property described in paragraph A of the Recitals shall be comprised of Lot 9 of Tract No. 92-06, as suchlot may be adjusted from time to time by any recorded lot line adjustment, together with any portion of the Covered Property that is Exclusive Use Common Area. It is acknowledged that the Common Area shall generally consist of parking and landscaped areas within the Covered Property and shall specifically include any Additional Parking Spaces created for the use and enjoyment of all or any of the Easement Users notwithstanding that such Additional Parking Spaces may be located within a Building Structure and shall specifically exclude any portion of the Covered Property that is or has become a part of a Condominium Project and is to be maintained by a Subordinate Association pursuant to the provisions of its Subordinate Declaration. The Association may record a Supplemental Declaration from time to timedesignating additional Common Area or changing or deleting any existing Common Area subject to the following conditions: (a) any such Supplemental Declaration covering such Common Area that is being added ordeleted must have the written consent of the Owner or Owners thereof and of any holders of any other interests therein and of the Declarant, for as long as Declarant continues to own any portion of the Covered Property; (b) such action does not decrease the number of parking spaces for the existing use of anyBuilding Structures to a number that is less than the minimum number required by the City for such uses in such Building Structure as set forth on Exhibit A attached hereto; (c) such action does not cause a decrease in the number of parking spaces or Additional Parking Spaces that have been allocated to each Building Structure pursuant to the Section entitled "Changes to Tenant Improvements and Uses" of the Article entitled "Architectural Control" of this Declaration; and (d) Easement Users will continue to have reasonable access to their Separate Interests, Exclusive Use Common Area, and any parking spaces that may be available on a nonexclusive basis to all Easement Users. Section 1.22 - Common Expenses. "Common Expenses" shall mean the actual and estimated costs oramounts established by the Board to be paid by all Owners for: (a) maintenance, management, operation, repair and replacement of all real property and the Improvements thereon which the Association is obligated to maintain pursuant to the provisions of any easement in favor of the Association or other Association Management Documents; s <n I b SiOo 3)m §om 5 z -< or~m ••<-,•*•» (b) unpaid Assessments; (c) management and administration of the Association, including, but not limited to, compensation paid by the Association to managers, accountants, attorneys and employees; (d) to the extent not metered or billed to Owners, utilities, trash pickup and disposal, gardening and other services which generally benefit and enhance the value and desirability of the Covered Property; (e) parking, pedestrian and traffic control costs, including maintenance of parking facilities (except Additional Parking Spaces the maintenance of which is to be paid by the levy of Parking Space Assessments), lighting, traffic control signs and enforcement of parking regulations; (f) premiums on all insurance and fidelity bonds maintained by the Association pursuant to the Article entitled "Insurance* of this Declaration; (g) adequate reserves to cover the deductible amounts of any insurance policies maintained by the Association and for the future repair or replacement of, or additions to, those major components which the Association is obligated to maintain pursuant to this Declaration, including reserves for replacements for structural elements and mechanical equipment or other facilities maintained by the Association; (h) (i) thereof; (j) (k) 0) taxes and assessments paid by the Association; discharge of any lien or encumbrance levied against the Association Property or portions expenses incurred by committees established by the Board; security systems or services installed by or contracted for by the Association; and other expenses incurred by the Association for any reason whatsoever in connection with theCommon Area that is being maintained by the Association pursuant to the provisions of this Declaration or the costs of any other item or items designated by the Association Management Documents, or in furtherance of the purposes of the Association or in the discharge of any duties or powers of the Association. Section 1.23 - Common Facilities. "Common Facilities" shall mean the Improvements upon the Common Area that are owned and maintained by the Association. Section 1.24 - Condominium. "Condominium," as to any portion of the Covered Property that is developed as a Condominium Project, shall mean an estate in real property as defined in Section 1351(0 of die California Civil Code and consists of a fractional undivided interest in common in certain Condominium Common Area together with a separate interest in space called a Unit and all right, .title andinterest appurtenant thereto. The fractional undivided interest in the Condominium Common Area will be more particularly described in the Subordinate Condominium Declaration encumbering the Condominium Project. Section 1.25- Condominium Building. "Condominium Building" shall mean a building that contains one or more Units, or portions thereof. Section 1.26- Condominium Common Area. "Condominium Common Area," if any, shall mean that portion of a Condominium Project that is owned in common by owners of the Condominiums therein. If a portion of the Covered Property is developed as a Condominium Project, the Condominium Common Areawill be more particularly described in the Subordinate Condominium Declaration encumbering the Condominium Project. Section 1.27 - Condominium Project. "Condominium Project" shall mean one or more Lots, if any, and refers to each Lot that is divided into Condominiums which together contain all of the undivided interestsin common in the Condominium Common Area of such Lot. Section 1.28 - County. "County" shall mean the County of San Diego, State of California. Section 149 - Covered Property. "Covered Property" shall mean the real property described in paragraphA of the Recitals and shall also include any additional property that is annexed to the plan of this Declaration pursuant to the Section entitled "Annexations" of the Article entitled "Mergers, Annexations and Deannexations" of this Declaration. The Covered Property is a common interest development as defined in Section 135 l(c) of the California Civil Code which is being developed as a planned development. Section 1.30 - Declarant. "Declarant" shall mean: (a) B. W. Pacific Partners, a California limited partnership, its successors and assigns, by merger, consolidation or by purchase of all or substantially all of its assets; and (b) any person or entity, his or its successors and assigns, to which the foregoing Declarant hasassigned any or all of its rights and obligations by an assignment expressed in a recorded instrumentincluding, without limitation, a deed, lease, option agreement, land sale contract or assignment as the case may be, transferring such interest if such assignee agrees in writing with Declarant to accept such assignment. (c) any First Mortgagee named in a Mortgage secured by any portion of the Covered Propertyowned by the Declarant referred to in subparagraph (a) above who has acquired fee title to such property by virtue of any of the Events of Foreclosure (as such term is defined in Section 3.14 of this Declaration). gectionJ.31 - Declaration. "Declaration" shall mean this Declaration of Covenants, Conditions andRestrictions as it may be supplemented and amended from time to time. Section 1.32 - Easement User. "Easement User" shall mean an Owner and the tenants, invitees, guests, agents, employees or licensees of such Owner who are entitled to the use and enjoyment of the Common Area pursuant to the easement granted in accordance with the Section entitled "Easements for Owners and Easement Users" of this Declaration. Section 1.33 - Exclusive Use Common Area. "Exclusive Use Common Area" shall mean those portions of the Common Area the exclusive use of which, subject to (he rights of the Association and Declarant, has been granted to a particular Owner or Owners and which, when conveyed, shall be appurtenant to the Separate Interest of any such Owner or Owners. Exclusive Use Common Areas shall be created pursuantto the Section entitled "Easements for Owners and Easement Users" of the Article entitled "Easements and Rights" of this Declaration. Section 1.34-Exhibit. "Exhibit" shall mean any document so designated herein and attached hereto or so designated in a Supplemental Declaration and attached thereto and each of such Exhibits is by this reference incorporated in this Declaration or such Supplemental Declaration. Section l.gS - Improvement. 'Improvement" shall mean all: (a) structures and appurtenances thereto of every type and land, including but not limited to,buildings, out buildings, recreational facilities, walkways, sprinkler and sewer pipes or lines, garages, carports, gazebos, roads, driveways, parking areas, fences, screens, screening walls, retaining walls, awnings, patio and balcony covers, stairs, decks, landscaping, hedges, slopes, windbreaks, the exterior surfaces of any visible structure, trees and shrubs, poles, signs, solar or windpowered energy systems (equipment, and water softener or heater or air conditioning and heating fixtures and equipment;or (b) the demolition or destruction by voluntary action of any structure or appurtenance thereto of every type and kind; (c) the grading, excavation, filling, or similar disturbance to the surface of the land including, without limitation, change of grade, change of ground level, change of drainage pattern or change of stream bed; (d) landscaping, planting, clearing, or removing of trees, shrubs, grass, or plants; (e) any change or alteration of any Improvement including any change of material, exterior appearance, color or texture; and (f) the processing and recordation of any lot line adjustment, the creation of a CondominiumProject and/or any resubdivision of one or more Lots. Secjjpn IJ6 - Lot. "Lot* shall mean a lot shown on the most recently filed tract map describing such lot or a parcel shown on the most recently filed parcel map describing such parcel and filed for record in the County as such lot or parcel may be adjusted from time to time by any recorded lot line adjustment to the extent that such lot or parcel is a part of the Covered Property. Lot* shall not include any AssociationProperty or Common Area that is owned in common by the Owners of the Separate Interests who possess appurtenant rights to the beneficial use and enjoyment thereof. Sfigtion LJ7 - Lot Area. "Lot Area" as to any Lot that does not have a completed Building Structurethereon shall mean the gross square footage or the land within such Lot. As to any Lot upon which a Building Structure has been completed, "Lot Area" shall mean the total of: (a) the gross square footage of the land within the Lot excepting or deducting therefrom the square footage of any Common Area; (b) the gross square footage of the floor or lower inside surface of each story of the Building Structure upon the Lot, including without limitation any basement; (c) the gross square footage of the floor surface of any mezzanines and balconies within the Building Structure upon the Lot. Notwithstanding the foregoing, the Lot Area of an Owner of a Separate Interest that is a Condominium shall be the number determined by multiplying the total of subparagraphs (a), (b) and (c) above, calculatedfor the Lot or Lots subdivided into the Condominium Project of such Owner as well as the Lots conveyed in fee to the Subordinate Association designated for such Condominium Project, by a fraction, the numerator of which is the total number of square feet of floor area of the Unit of such Owner and the denominator of which is the total square feet of floor area of all Units within such Condominium Project. Upon completion of construction, reconstruction or modification of any Building Structure upon a Lot, any Common Area within such Lot shall be determined with particularity and the Lot Area for such Lot shall be adjusted to reflect the gross square footage of the Lot, the gross square footage of the floor area withina Building Structure constructed on the Lot and the gross square footage of any Common Area upon such Lot. "Completion" shall mean (i) the date shown on a Notice of Completion recorded in the OfficialRecords for the completion of the work of such Improvements upon such Lot* or (ii) the date on which such Improvements are occupied or utilized by the Owner or his Easement User, whichever of (i) or (ii)occurs earlier. Section 1.38 - Master Association. "Master Association" shall mean Carlsbad Oaks Business Center Association, a nonprofit mutual benefit corporation incorporated under the laws of the State of California, its successors and assigns, for the purpose of managing the property covered by the Master Declaration. Section 1.39 - Master Declaration. "Master Declaration" shall mean the Declaration of Protective Restrictions recorded on October 11, 1985, as Instrument No. 85-378668, in the Official Records of San Diego County, California, as it may be amended from time to time. Section 1.40 - Member. "Member" shall mean every person or entity who is an Owner including Declarant so long as Declarant continues to be an Owner. Section 1.41 - Mortgage and Mortgagee. "Mortgage" and "Mortgagee" shall mean any duty recorded mortgage or deed of trust encumbering a Combined Property Interest, and the holder of the mortgagee's or beneficiary's interest under any such Mortgage, respectively. "First Mortgage" and "First Mortgagee* shall mean respectively a Mortgage which has priority over all other Mortgages encumbering a specific Combined Property Interest, and the holder of any such First Mortgage. Section 1.42 - Nonexclusive Use Common Area. "Nonexclusive Use Common Area" shall mean the real property and amenities owned or managed by the Association for the common use of all Easement Users. The Nonexclusive Use Common Area shall consist of the Common Area excepting therefrom anyExclusive Use Common Area and Association Common Area. Section 1.43 - Official Records. "Official Records" shall mean the Official Records in the Office of theCounty Recorder of the County. Section 1.44 - Owngr. "Owner" shall mean one or more persons or entities who are alone or collectively the record owner of a fee simple title to a Combined Property Interest, including Declarant, excludingthose having any such interest merely as security for the performance of an obligation. Section 1.45 - Pro Forma Operating budget. "Pro Forma Operating Budget" shall mean the estimated revenue and expenses on an accrual basis'. Section 1.46 - Public Agency. "Public Agency" shall mean individually and/or collectively the City, County, the State of California, and the United States of America, or any agency of any of the foregoingthat has authority over all or any portion of the Covered Property or which regulates or has the authority to regulate any of the uses thereon. Section 1.47 - Separate Interest. "Separate Interest" shall mean, as applicable: (a) a Condominium within any portion of the Covered Property that is developed as a Condominium Project; (b) a Lot as to any portion of the Covered Property that is not a Condominium, AssociationProperty or Subordinate Association Property. Effective upon the conveyance of the first Condominium within any Condominium Project created pursuantto Section 1350 et seq. of the California Civil Code, or any successor statute thereof, each Condominium within that Condominium Project shall be a Separate Interest as defined in this Declaration and the votingrights and the Assessments levied pursuant to this Declaration shall be apportioned to the Owners of Condominiums in such Condominium Project in the manner set forth in this Declaration provided that the Board has been provided with evidence that a Condominium Project has been created and that a Condominium within the Condominium Project has been conveyed. Sectipn 1.48 - Subordinate Association. "Subordinate Association" (also referred to as a "Subordinate Condominium Association") shall mean any incorporated association which is formed, among other things, to facilitate the maintenance and operation of any portion of the Covered Property which is developed as a Condominium Project and to enforce or administer any Subordinate Declaration. Section 1.49 - Subordinate Association Property. "Subordinate Association Property" shall mean any real property and the Improvements thereon owned in fee, by easement or leased from time to time by a Subordinate Association. The Subordinate Association Property shall be more particularly described in theSubordinate Declaration of such Subordinate Association. Section 1.50 - Subordinate Declaration. "Subordinate Declaration" shall mean any declaration of covenants, conditions and restrictions applicable to a particular portion of the Covered Property which is subordinate to this Declaration either (i) pursuant to the terms of such Subordinate Declaration, (ii) because of its recording sequence in the Official Records, or (iii) pursuant to an agreement recorded in the Official Records wherein record holders of all interests in the property covered by the Subordinate Declaration expressly agree to subordinate their interests under the Subordinate Declaration to that of thisDeclaration. "Subordinate Declaration" shall also include any declaration of covenants, conditions andrestrictions recorded by lessees who hold leases upon any portion of the Covered Property without the consent of the fee owners of such portion of the Covered Property notwithstanding the recording sequencein the Official Records of such declaration of covenants, conditions and restrictions. A Subordinate Declaration that encumbers a Condominium may also be referred to as a "Subordinate CondominiumDeclaration." < Section 1.51 - Supplemental Declaration. "Supplemental Declaration" shall mean the document or instrument recorded by Declarant, or by an Owner with the consent of the Declarant, against the CoveredProperty, or any portion thereof, for the purpose of designating additional Common Area or amending or deleting Common Area, designating Additional Parking Spaces or additional covenants, conditions and restrictions that are consistent with the development plan for Canyon Pacific and the Carlsbad OaksBusiness Center. A Supplemental Declaration may be recorded for the purposes set forth herein as long as such Supplemental Declaration does not impose any unreasonable additional obligations upon any other Owners, amend any provisions of the Declaration that materially affect other Combined Property Interests,decrease the number of parking spaces or Additional Parking Spaces that have been allocated to other Owners or increase the amount of any Assessment, Such Supplemental Declaration must be recorded by Declarant or by an Owner with the consent of the Declarant for as long as Declarant continues to own anyportion of the Covered Property, and thereafter by the Owner of the affected Separate Interest and by the Association to evidence the written consent of the Board. Section 1.52 - Unit. "Unit" shall mean a separate interest in space as defined in Section 1351(0 of the California Civil Code comprised of elements of a Condominium not owned in common with the Owners of other Condominiums. Each Unit shall be described with more particularity in the Subordinate Condominium Declaration encumbering such Unit. \f 3 ARTICLE II THE ASSOCIATION Section 2.Q1 - General Duties and Powers. The Association, through the Board, shall have the duty and obligation to manage and maintain the Covered Property in accordance with the provisions of the Section entitled "Powers and Duties" of the Article entitled "Powers, Duties and Limitations" of the Bylaws andother provisions of the Association Management Documents. Subject to the limitations and restrictions enumerated in the Association Management Documents, the Association shall have all of the powers permitted by California law as set forth below: (a) The powers granted to a nonprofit mutual benefit corporation permitted by California statute as set forth in Corporations Code Section 7140, Code of Civil Procedure Section 374 and Civil Code Section 1363; (b) Standing to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in its own name as the real party in interest and without joining with it the individual Owners in matters pertaining to the following: (i) Enforcement of the Association Management Documents; (ii) Damage to the Common Area; repair; (iii) Damage to the Separate Interests that the Association is obligated to maintain or (iv) Damage to the Separate Interests which arises out of, or is integrally related to, damage to the Common Areas or Separate Interests that the Association is obligated to maintain orrepair; and (c) The other powers granted to the Association by law. Such powers shall include, but not be limited to, the right to designate from time to time portions ofCommon Area other than Exclusive Use Common Area as Association Common Area and the right to join with Declarant and others in the execution of any lot line adjustment and quitclaim deeds and to accept title to property (1) for the purpose of eliminating encroachments due to engineering errors or errors in construction of any Improvements upon any of the affected property, (2) to permit changes in the development plan in circumstances where such changes are the result of topography, obstruction, hardship, aesthetic or other environmental conditions, (3) are the requirement of a regulatory agency, (4) do not have a significant negative impact upon the Association or any Owner, or (5) to transfer the burden of management and maintenance of any Association Property which in the reasonable judgment of the Boardis generally inaccessible or is not likely to be of any particular use or benefit to the Owners provided that any such action does not reduce the number of parking spaces that the Easement Users are entitled to use pursuant to the provisions of this Declaration and provided further that any conveyance of AssociationProperty does not unreasonably discriminate against any particular Easement Users. Section 2.0? - Power to Grant Rights. The Association shall have the right to grant utility easements under, through and across any Common Area other than Exclusive Use Common Area as reasonablynecessary for the ongoing development and operation of the Covered Property. •f- Section 2.fft - Membership. Membership of Owners shall be appurtenant to and may not be separated from the interest of such Owner in any Combined Property Interest. A Member may own more than one membership in the Association by complying with the qualifications of membership as to more than one (1) Combined Property Interest. Section 2.1)4 - Transfer. The membership held by any Owner shall not be transferred, pledged oralienated in any way, except that such membership shall automatically be transferred to the transferee of the interest of an Owner required for membership. Any attempt to make a prohibited transfer is void and will not be reflected upon the books and records of the Association. The Association shall have the right (o record the transfer upon the books of the Association without any further action or consent by the transferring Owner. Section 2.Q5 - Delegation of Membership Rights. An Owner, upon giving written notice to the Association, may give a power coupled with an interest to act as Owner's agent and proxy in all matters relating to die Association to (i) a lessee of a lease of an entire Combined Property Interest that has a term in excess of five (5) years such power and proxy to automatically terminate when the lessee's tenancy ends for any reason, or (ii) to a contract purchaser under an agreement to purchase such power and proxy to automatically terminate when the contract purchaser's contract terminates for any reason. However, the lessor or contract seller shall remain liable for all charges and Assessments attributable to his Combined Property Interest as long as such lessor or contract seller continues to be an Owner. Section 2.Q6 - Classes of Membership. The Association shall have two (2) classes of voting membership. £iass_A. Class A Members shall be all Owners with the exception of Declarant until the Class B membership has been converted to Class A membership, and after such conversion all Owners shall beClass A Members. The Class B Member shall be the Declarant. The Class B membership shall forever cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier: (a) on the date that Declarant has no remaining interest in the Covered Property as either anOwner or a Mortgagee; or (b) on the date that the Declarant has elected to terminate the Class B membership and has provided written notice of such election to the Board. Section 2.07 - Voting Power. Each Class A Owner shall be entitled to one (1) vote for each 500 square feet, or portion thereof, of Lot Area owned and the Class B Member shall be entitled to ten (10) votes for each 500 square feet, or portion thereof, of Lot Area owned. When more than one Owner owns a portion of the interest in a Lot required for membership, each such Owner shall be a Member but the voting power of each such Owner shall be determined as set forth herein. The Association may, but shall not be obliged to, refuse to recognize the vote or written assent of any co-Owner, except the vote or written assent of the co-Owner designated in a writing executed by all of such co-Owners and delivered to the Association. Section 2.08 - Voting Rights. All voting rights shall be subject to the restrictions and limitations provided in the Association Management Documents. Wherever a provision of the Association Management Documents requires the approval or written assent of Members and of the Declarant, it shall be deemed to mean the vote or written assent of a prescribed percentage of (i) the total voting power of all Members,and (ii) the total voting power of the Class B Member, . Section 2.09 - Approval of Alt Members. Unless elsewhere otherwise specifically provided in the Association Management Documents, any provision of the Association Management Documents which requires the vote or written consent of either the voting power of the Association or of Members and the Declarant shall be deemed satisfied by the following: (a) the vote in person or by proxy of the specified percentage of all of the votes which are entitled to be cast. Said vote shall be at a meeting duly called and noticed pursuant to the provisions of the Bylaws dealing with annual or special meetings of the Members; and (b) written consents signed by the specified percentage of all of the votes which are entitled to be cast. Said vote by written consent shall be solicited pursuant to the procedures provided in the Bylaws. Nothing in this Section or in any other provision of any of the Association Management Documents shall preclude Members from assenting to the amendment of any of the Association Management Documents byjoining in the execution of, or attaching their written consent to, such amendment. Section 2.10 - Certificate Evidencing Approvals. The certificate of any officer or officers authorized by resolution of the Board or of the president and secretary certifying that the required voting power of the Association has approved the execution, delivery and/or recordation of an amendment to any of theAssociation Management Documents or any other document requiring the approval of the voting power of the Association shall be deemed conclusive proof thereof. ARTICLE HI ASSESSMENTS Section 3.01 - Agreement to Pay. Subject to limitations contained in the Association Management Documents, the Association, through its Board, shall fix, establish and collect from time to time Assessments sufficient to perform its obligations under the Association Management Documents. EachOwner, including Declarant to the extent Declarant is an Owner as defined herein, is deemed to covenantand agree to pay such Assessments to the Association. Section 3.Q2 - Collection and Disbursement. All funds of the Association may be commingled so that the Association may qualify for higher yielding accounts at banking or savings and loan institutions as long as the accounting records of the Association reflect deposits and disbursements in a manner that will insure that the funds collected will be used only for the purposes for which such funds were collected. Section 3.03 - Maximum Assessments. (a) Regular Assessments. In the event the Board shall determine that the estimate of total charges for the current year is or will become inadequate to meet all Common Expenses for any reason, it shall then immediately determine the approximate amount of such inadequacy, issue a supplemental estimate of such Common Expenses and determine the revised amount of the Regular Assessment and the installments thereof, if applicable, allocable to each Combined Property Interest, and the date or dates when due. In the event the amount budgeted to meet Common Expenses for the then current year proves to be excessive in light of the actual Common Expenses, the Board in its discretion may either reduce the amount of the Regular Assessment or may abate collection thereof as it deems appropriate, (b) Capital Improvement Assessments. In any fiscal year the Board may not, without the vote or written assent of Members constituting a majority of a quorum of the voting power of the Association, levy Capital Improvement Assessments which Jn the aggregate exceed fifteen percent (15%) of the VCommon Expenses of the Association for that fiscal year. For purposes of this Section and as provided in the Bylaws, a majority of the voting power of the Association constitutes a quorum. (c) Special Assessments. The Association shall have the right to levy Special Assessmentsagainst any Owner or Owners who receive special services or benefits that are not being provided to all Owners or that benefit one or more but not all Owners. In the event that the Association and any Owners agree that the Association is to provide particular special services or benefits that are to be provided forthe benefit or such Owner or Owners, {hereinafter "Special Benefits" and the Combined Property Interests of such Owner or Owners (the "Special Benefits Area") the Special Benefits and the Combined Property Interests that are to comprise the Special Benefits Area shall be described in a. Supplemental Declaration recorded in the Official Records by such Owner or Owners and the Association and the cost of such Special Benefits shall be apportioned to the Owner or Owners in such Special Benefits Area on the basisthat the Lot Area of each such Owner of a Combined Property Interest therein bears to the total Lot Area of all Owners in such Special Benefits Area. Such special services or benefits may include, but not belimited to, the maintenance of Exclusive Use Common Area or any portion of a Combined Property Interest or Condominium Project. (d) Maximum Increases. Assessments which in the aggregate exceed twenty percent (20%) ofthe Common Expenses of the Association for that fiscal year that are to be apportioned to all of the Members for any act of undertaking of the Association may not be levied in such fiscal year without thevoleor written assent of a majority of a quorum of the voting power of such Members. Assessments which in the aggregate exceed twenty percent (20%) of the total cost of providing Special Benefits for the Owners within a Special Benefits Area for that fiscal year for any act of undertaking of the Association which is to be for the benefit of such Special Benefits Area or its Owner may not be levied in such fiscalyear without the vote or written assent of a majority of a quorum of the voting power of the Members within such Special Benefits Area. Section 3.04 - Assessment Allocation. Assessments shall be fixed for each Combined Property Interest in accordance with the provisions of this Declaration as hereinafter provided in this Section. (a) Parking Space Assessments. Parking Space'Assessments levied against an individual Owner shall be fixed at the amount necessary to reimburse the Association for costs incurred by the Association inperforming any maintenance and repair of Improvements within any Additional Parking Spaces created by, or at the request of, such Owner; (b) Penalty Assessments. Penalty Assessments levied against an individual Owner shall be fixed (i) at the amount necessary to reimburse the Association for costs incurred by the Association in performing any repair of damage and maintenance for which such Owner was allegedly responsible, or (ii)as determined from time to time by the Board as a disciplinary measure for failure of such Owner to comply with the provisions of the Association Management Documents; (c) Special Assessments for Materials or Services. In the event an Owner accepts materials or services provided by the Association, the Special Assessment levied against such Owner shall be the amount necessary to reimburse the Association for the costs incurred in providing such materials and services; (d) Special Assessments for Special Benefits. Special Assessments levied against an Owner within a Special Benefits Ana shall be determined by multiplying the amount required to be collected by a fraction, the numerator of which is the Lot Area of such Owner and the denominator of which is the total Lot Area of all Owners who own Separate Interests within such Special Benefits Area; (e) Cable Television. In the event the Board elects to contract with a cable television servicecompany to provide service for the benefit of Owners, Cable Television Service Assessments shall be levied against Owners who have subscribed with the Association for such services; and (t) Assessments for All Other Purposes. Regular Assessments, Capital Improvement Assessments and Reconstruction Assessments for the repair, replacement, or reconstruction ofImprovements within the Common Area and Special Assessments for any act or undertaking of the Association other than for the payment of Special Benefits and as set forth above shall be fixed for each Owner by multiplying the amount required to be collected by a fraction, the numerator of which is the Lot Area of such Owner and the denominator of which is the total Lot Area of all Owners within the Covered Property, All Assessments may be collected at intervals selected by the Board. Section 3.Q5 - Certificatej>fj>ayrnent. The Association shall, upon demand, furnish to any Owner liablefor Assessments a certificate in writing signed by an authorized agent of the Association or by the president setting forth whether the Assessments on such Owner's Combined Property Interest have beenpaid, and the amount of delinquency, if any. A reasonable charge may be collected by the Board for the issuance of these certificates. Such certificates shall be conclusive evidence of payment of any Assessmenttherein stated to have been paid. Section 3.06 - Exempt Property. (a) All Lots owned by the Declarant that have not yet been improved and as a result thereof do not have a significant number of Easement Users shall be exempt from the payment of Assessments until such time as a certificate of occupancy or similar document for a Building Structure upon such Lot has been issued by the appropriate Public Agency. (b) All properties dedicated to and accepted by any Public Agency for use by the public shall be exempt from the payment of Assessments hereunder. (c) Declarant and any other Owner of a Combined Property Interest shall be exempt from the payment of any portion of a Regular Assessment that is for the purpose of defraying expenses and reservesdirectly attributable to the existence and the use of any Improvements within or upon Common Area that have not yet been completed. Such exemption shall continue (i) until a notice of completion has beenrecorded covering such Improvements or (ii) the date on which such Common Area has been placed into use, whichever of (i) or (ii) occurs earlier. flection 3 07 - Pate of Commencement. (a) The Regular Assessments shall commence with respect to all Combined Property Interests on the first day of the month following the first Close of Escrow to occur within the Covered Property. (b) All other Assessments shall commence with respect to all Combined Property Interests on the date that Regular Assessments commence against such Combined Property Interests. The first Regular Assessment and Special Assessment for Special Benefits shall be adjusted according to the number of months remaining in the fiscal year. Section 3.08 - No Offsets. All Assessments shall be payable in the amount specified by the Assessment and no offsets against such amount shall be permitted for any reason. CO I. - •. • Section 3.09 - Reduction and Abatement, in the event any Assessments for the then current fiscal yearbecome excessive in light of actual Common Expenses, costs of Capital Improvements to be funded by Capital Improvement Assessments, Reconstruction Assessments, or Special Assessments for SpecialBenefits, as applicable, the Board, in its sole discretion, may reduce the amount of any such Assessment or shall abate the collection thereof as it deems appropriate so that no excess funds remain in any such account at the end of the fiscal year. Should any excess funds remain in any such account at the end ofthe fiscal year, the Board shall credit such excess against, as applicable, Regular Assessments, Reconstruction Assessments, Parking Space Assessments, Capital Improvement Assessments or SpecialAssessments for Special Benefits levied against any Owners for such purpose in the next fiscal year. The credit shall be given to the Owners of record at the time of such credit and shall be apportioned to such Owners in the same ratio that Assessments are then being levied against such Owners at the time of suchcredit. Section 3. ip - Delinquency. Any Assessment provided for in this Declaration which is not paid shall be delinquent fifteen (IS) days after such Assessment was due (the "delinquency date") and AllowableCharges may be recovered if an Assessment becomes delinquent. The Association may at its option, and without waiving the right to judicially foreclose its lien against such Owner's Combined Property Interest,pursue any available remedies, including, without limitation, bringing an action at law against the Owner personally obligated to pay the same, and/or upon compliance with the notice provisions set forth in theSection entitled "Personal Obligation; Lien" of this Article, to foreclose the lien against such Owner's Combined Property Interest under the power of sale granted herein. Each Owner vests in the Association,or its assigns, the right and power to bring all actions at law or any Hen foreclosure against such Owner or other Owners for the collection of such delinquent Assessments. Section 3.11 - Personal Obligation: Lien. An Assessment and any Allowable Charges shall be a personalobligation and debt of the Owner of the Combined Property Interest at the time the Assessment or Allowable Charges are levied and shall not pass to successors in title unless assumed by the successors intitle. The amount of the Assessment, plus any Allowable Charges, shall be a lien on the Owner's Combined Property Interest from and after the time the Association causes to be recorded in the OfficialRecords a notice of delinquent assessment which shall state (1) the amount of the Assessment and Allowable Charges, (2) a description of the Owner's Combined Property Interest against which theAssessment and Allowable Charges are levied, (3) the name of the record Owner of the Combined Property Interest against which the lien is imposed, and (4) in order for the lien to be enforced bynonjudicial foreclosure as hereinafter provided, the name and address of the trustee authorized by the Association to enforce the lien by sale. The notice of delinquent assessment shall be signed by the officersauthorized for such purpose by resolution of the Board or by the president of the Association. Upon payment of the sums specified in the notice of delinquent assessment, the Association shall cause to berecorded a further notice stating the satisfaction and release of the lien thereof. A lien created pursuant to this Section shall be prior to all other liens recorded subsequent to the notice of delinquent assessment, except (1) all taxes, bonds, assessments and other levies which, by law, would be superior thereto, and (2) Qthe lien or charge of any First Mortgage. Section 3.12 - Not Subject to Lien. Penalty Assessments and Allowable Charges incurred in connection with delinquent Penalty Assessments may not be characterized nor treated as an Assessment which may become a lien against an Owner's Combined Property Interest enforceable in accordance with the Section entitled "Foreclosure Sale" of this Article unless such Owner is declared to be in default after notice isgiven and hearing proceedings are completed in accordance with the applicable provisions of the Association Management Documents. Nothing in this Declaration, however, shall prevent the Associationfrom bringing an action at law or in equity against an Owner to collect Penalty Assessments. Section 3.13 - Foreclosure Sale. Said lien created pursuant to this Article may be enforced in any mannerpermitted by law, including sale by the court, sale by the trustee designated in the Notice of Delinquent Assessment, or sale by a trustee substituted pursuant to Section 2934a of the California Civil Code. Any sale by a trustee provided for above is to be conducted in accordance with the provisions of Sections 2924 Si seq. and Section 1367 of the California Civil Code, applicable to the exercise of powers of sale inmortgages and deeds of trust. Upon the affirmative vote of a majority of the voting power of the Association, the Association, through its duly authorized agents, shall have the power to bid on the Combined Property Interest, using Association funds, or funds borrowed for such purpose, at the sale, and to acquire and hold, lease, mortgage and convey the same. Nothing in this Section prohibits actionsagainst any Owner to recover sums for which a lien is created pursuant to this Article or prohibits the Association from taking a deed in lieu of foreclosure. Section 3.14 - Subordination of Assessment Liens. The lien of the Assessments and Allowable Charges provided for in this Declaration shall be subordinate to the lien of any First Mortgage upon any CombinedProperty Interest. The foreclosure of any lien provided for in this Article for the payment of Assessments and Allowable Charges shall not operate to affect or impair the lien of P First Mortgage and the foreclosure of the lien of a First Mortgage or the sale under a power of sale included in such FirstMortgage (such events being hereinafter referred to as "Events of Foreclosure") shall not operate to affect or impair such Assessment Hen, except that any persons who obtain an interest through any of the Events of Foreclosure, and the successors in interest, shall take title free of such Assessment lien or any personalobligation for said charges as shall have accrued up to the time of any of the Events of Foreclosure, but subject to the Assessment lien for all said charges that shall accrue subsequent to the Events ofForeclosure. Notwithstanding the foregoing, any delinquent Special Assessments for Special Benefits in a Special Benefits Area that were extinguished pursuant to this paragraph may be reallocated and assessed toall Combined Property Interests within such Special Benefits Area as a common expense for such Special Benefits Area and any other delinquent Assessments that were extinguished pursuant to this paragraph maybe reallocated and assessed to all Combined Property Interests as a Common Expense. A First Mortgagee's rights pursuant to this Section shall not be affected by the failure of such First Mortgagee to deliver a notice to the Board. Section 3. IS - Nondj$turbance of Tenancy. The acquisition of a Combined Property Interest through any of the events of foreclosure described in the Section entitled "Foreclosure Sale" of this Article shall notdisturb the tenancy created by any existing recorded lease that encumbers such Combined Property Interest. By acceptance of fee title to such Combined Property Interest through any of such events of foreclosure, the grantee and any successor in tide to such Combined Property Interest agree that the rights and privileges acquired pursuant to the provisions of such existing lease shall remain undisturbed as longas the lessee is not in default of any of the provisions thereof. ARTICLE IV ARCHITECTURAL CONTROL Section 4.01 - Architectural Committee. The Architectural Committee shall consist of not fewer than three (3) persons as fixed from time to time by resolution of the Board. Declarant shall initially appoint the Architectural Committee. Declarant shall retain the right to appoint, augment or replace all members of the Architectural Committee (i) for as long as Declarant continues to have an interest in the Covered Property as either an Owner or Mortgagee, or (ii) until Declarant gives the Board written notice that it elects to no longer retain the right to appoint member of the Architectural Committee. When Declarant nolonger has the right to appoint members of the Architectural Committee, the Board shall appoint all such members. The Architectural Committee shall establish an address for the submittal of plans andspecifications and the place where the current Architectural Standards shall be kept. 1 Section 4.02 - Architectural Standards.. The Declarant shall have the right to adopt and promulgate Architectural Standards to be administered through the Architectural Committee for as long as theDeclarant has the right to appoint members to the Architectural Committee. When the Declarant's right to appoint such members terminates, the Board may from time to time adopt and promulgate standards to be administered by the Architectural Committee appointed by the Board. The Architectural Standards may include among other things those restrictions and limitations upon the Owners set forth below: (a) time limitations for the completion of the Improvements for which approval is required pursuant to the Architectural Standards; (b) conformity of completed Improvements to plans and specifications approved by the Architectural Committee; (c) a description of the Improvements which, if completed in conformity with the ArchitecturalStandards, do not require the approval of the Architectural Committee; (d) the prepayment of a deposit to be applied toward the payment of any Special Assessment levied by the Board if such Owner fails to restore any portion of the Covered Property to a clean and attractive condition; (e) the assessment of a reasonable fee as appropriate to cover the costs and expenses inconnection with the type and nature of the Improvement and to cover the cost of inspections that may be necessary to insure compliance; (0 in connection with the review of plans and specifications for proposed Improvements, including without limitation, a procedure for approval of preliminary plans and drawings, as well as final approval, the number of sets to be submitted, and such detail as deemed proper, including without limitation, floor plans, site plans, elevation drawings, descriptions or samples of exterior materials andcolors and intended uses for each portion of the Building Structure; and (g) such other limitations and restrictions on Improvements as the Board in its reasonable discretion shall adopt, including, without limitation, the regulation of the placement, land, shape, height,materials, species and location of any Improvement. Section 4.03 - Functions of Architectural Committee. (a) It shall be the duty of the Architectural Committee to consider and act upon proposals or plans submitted pursuant to the terms of this Declaration or the Architectural Standards and to performsuch other duties delegated to it by the Board; (b) The Architectural Committee may delegate its plan review responsibilities to one or more members of such Architectural Committee. Upon such delegation, the approval or disapproval of plans and specifications by such persons shall be equivalent to approval or disapproval by the entire Architectural Committee; and (c) Unless all of the rules of the Architectural Committee have been complied with, such plans and specifications shall be deemed not submitted. •I (0 O Io 31moSOm oc 3 o m Section 4.04 - Approval. (a) No Improvements shall be made upon the Covered Property except in compliance with plans £ {•' <and specifications therefor which have been submitted to and approved by the Architectural Committee except as may otherwise be provided in the Architectural Standards. (b) The Architectural Committee shall review plans and specifications submitted for its approval as to style, exterior design, appearance and location and shall approve such plans and specifications only if it deems that the proposed Improvement will not be detrimental to the appearance of the Covered Property as a whole; that the Improvement complies with the Architectural Standards; that the appearance of anyImprovements will be in harmony with the surrounding structures; that the construction of any Improvement will not detract from the beauty and attractiveness of the Covered Property or the enjoyment thereof by the Owners; and that the upkeep and maintenance of any Improvement will not become a burden on the Association. The Architectural Committee (1) may determine that such Improvement cannot be approved because of its effect on existing parking, drainage, utility or other easements, (2) may require submission of additional plans and specifications or other information or materials prior to approving or disapproving plans and specifications submitted, or (3) may condition its approval of plans and specifications for any Improvement on such changes and conditions therein as it deems appropriate such as, and without limitation, the approval of such Improvement by a holder of an easement which may be impaired thereby, the creation of Additional Parking Spaces or employee eating areas at the expense of the Owner requesting such approval, or upon approval of any such Improvement by the appropriate PublicAgency. Any Architectural Committee approval conditioned upon the approval by a Public Agency or an easement holder shall not imply the Association is enforcing any government codes or regulations or provisions of any easement agreement, nor shall the failure to make such conditional approval imply that any such Public Agency or easement holder approval is not required. Section 4.05 - Changes in Tenant Improvements and Use. Nothing in this Declaration is intended to limit the size of any Building Structure or to limit the right of any Owner to increase or decrease the number of square feet of gross floor area within a Building Structure designated for the particular uses shown on Exhibit A attached hereto provided that (i) any construction or change in such use is approved by the Cityand the Board in addition to the Architectural Committee, (ii) any other Owners are not deprived of their employee eating areas and the number of parking spaces allocated to such Owners and their Separate Interests, and (iii) no Assessments are levied or increased against any other Owners as the result of the construction of any Additional Parking Spaces or additional employee eating areas that need to be provided in connection with any such construction or change in use. (a) Parking Space Ratio. The parking space requirements for all uses and the square footage of the Building Structures within the Covered Property shall comply with all City ordinances. Where two or more uses occupy a single Building Structure, it is the requirement of the City that the parking requirement shall be determined by calculating the parking space requirement for each use individually in accordance with the formula prescribed by the City which is shown on Exhibit A attached hereto. (b) Employee Eating Area Ratio. The eating area requirements for all uses and square footage of floor area of the Building Structures existing within the Covered Property required the establishment of not less than 7,464 square feet of employee eating areas 544 square feet of which are located within the Building Structure of Lot 1 of Tract No. 92-06, 240 square feet of which are located within the BuildingStructure of Lot 2 of Tract No. 92-06 and 240 square feet of which are located within the Building Structure of Lot 5 of Tract No. 92-06. (c) Records of Association. The Board shall maintain a record showing (i) the gross square footage of floor area of all Building Structures, (ii) the current uses of all portions of such Building Structures upon the Covered Property, (iii) the location and size of all eating areas within the Covered Property that are available and accessible for the common use of all employees within the Covered Property, and (iv) the parking space allocations and any Additional Parking Spaces allocated to the uses and Building Structures. (d) Changes in pse. The Board shall be responsible for reviewing any changes to tenant Improvements for changes in any use contemplated for a Building Structure, or any portion thereof, or in the square footage of floor area of a Building Structure. No change in the square footage of floor areaand/or the designated use of a Building Structure shall be permitted by the Board unless also approved by the City. If any such approval is conditioned upon the creation of Additional Parking Spaces or a greater square footage of employee eating area, such Additional Parking Spaces or additional employee eating areas, as applicable, acceptable to the City and the Board shall be provided by or at the cost of the Owner or Owners of such Lot. Upon approval of any such change in parking space allocation by the Board and die City and the completion of the construction of additional employee eating areas and/or AdditionalParking Spaces, if required, the Owner(s) of the affected Lot and the Association shall record a Supplemental Declaration which will specify the gross square footage of the additional employee eatingarea and the actual number of parking spaces allocated for such Lot together with the number and location * ' of the Additional Parking Spaces. (e) Additional Parking Spaces. If an Owner (hereinafter the "Affected Owner") is required by the City and/or the Board to provide Additional Parking Spaces in addition to the number of parking spaces that have been allocated to such Lot as a condition to the construction, reconstruction ormodification of any Improvements or uses upon his Lot, such Affected Owner shall create such Additional Parking Spaces at his expense upon the Common Area if approved by the Board and/or upon the Lot orSeparate Interest of the Affected Owner subject to further limitations as follows: (i) any of such Additional Parking Spaces located upon the Lot of such AffectedOwner shall be maintained by the Association at the sole cost and expense of the Affected Owner and such parking spaces shall be (i) subject to control and management by the Association, (it)reasonably accessible to the Easement Users and available on a nonexclusive basis to all such Easement Users; (ii) any parking structure constructed on the Common Area to provide any such Additional Parking Spaces shall be constructed at the sole cost and expense of the Affected Owner.Such Affected Owner who is permitted to construct a parking structure upon Common Area owned in common with other Owners or Association Property shall indemnify and hold the Associationand such other Owners harmless from any loss, claims, costs, expenses or any other liability for damage to property and/or injury or death to any person caused in whole or in part by (i) any negligence of the Affected Owner, or its employees, members, independent contractors or agents or(ii) any act or omission for which such Affected Owner or its employees, members, independent contractors or agents is liable, without fault in the exercise of the rights herein described. Affected Owner agrees that it shall not suffer or permit to be enforced against such Common Area, or anypart thereof, any mechanics', laborers', materialmen's, contractors', subcontractor!!' or any other liens arising from, or any claims for damages going out of any work of construction or improvement performed by or for Affected Owner arising from this Section, but Affected Owner shall pay, or cause to be paid, all of said liens, claims and demands before any action is brought to enforce the same against the Common Area; and Affected Owner hereby indemnifies and agrees tohold the Association and the Owners and the Common Area affected by such lien free and harmless from liability for any and all of such liens, claims and demands, together with all costs andexpenses, including, but not limited to, attorneys' fees and court costs incurred in connection therewith; and Association and/or such Owners shall have the right, at any time and from time to time, to post and maintain on the Common Area or any part thereof, such Notices ofNonresponsibility as desired or as rnay be provided by law. In the event Affected Owner shall fail to pay off and fully discharge, or cause to be released, any such lien, claim or demand within sixty(60) days after the filing of such lien, claim or demand, then the Association shall have the right, at its option, to pay the same, or any portion thereof, in which event, Affected Owner shall repay toAssociation or to any such Owner all money which Association or such other Owner or Owners may pay out in discharge of any such lien, claim or demand, and all attorneys' fees, costs or expenses which may accrue, grow out of or be incurred by reason of or on account of such lien, claim or demand. Notwithstanding anything to the contrary contained above, if Affected Owner, ingood faith, contests the validity of any such lien, claim or demand, then Affected Owner shall, at its expense, defend itself and the Association and Owners against the same, and shall pay andsatisfy any adverse judgment that may be rendered before the enforcement thereof against the Affected Owner or the Common Area. The Board may impose such other requirements deemednecessary in connection with the construction of such parking structure, including without limitation, the posting of a bond or other arrangement to secure the commitment to complete the construction of the parking structure or requiring proof of liability insurance or being named as an additional insured on a public liability insurance policy maintained by the Affected Owner; (iii) Any Owner who has provided Additional Parking Spaces pursuant to this Article which are required to be maintained by the Association at the expense of such Owner pursuant to the Section entitled "Parking Space Ratio" above shall not receive any credit or be permitted to offset the Parking Space Assessments or other costs of maintenance and repair against any Assessments required to be paid by such Owner pursuant to the provisions of this Declaration; and (iv) Each Owner, including Declarant, who has been required to provide Additional Parking Spaces which are intended to be for the nonexclusive use of all Easement Users agrees ID pay Parking Area Assessments established and collected from time to time in an amount sufficient to keep Assessments to other Owners from increasing as the result of the cost and expense estimated for the management, operation, control, maintenance, repair, restoration and replacement of any parking space Improvements that were made to create the Additional ParkingSpaces provided by the Affected Owner pursuant to this Article. (f) Subdivision of Lot. In the event of the subdivision of a Lot into more than one Lot, theparking spaces that have been allocated to such Lot shall be apportioned to the newly created Lots on thebasis determined by the Owners of such Lots as approved by the City. In the absence of any such agreement, the parking spaces shall be apportioned between the Owners on the basis that the squarefootage of floor area of the Building Structure of each Lot bears to the total gross square footage of floorarea of all Building Structures upon such Lots. Any subdivision of a Lot must be approved by the City and the Supplemental Declaration must also be executed by the Association to evidence written approval of the Board, which approval shall not be unreasonably withheld. (g) Inspections. The Association and the City shall have the right to enter any Building Structure during normal business hours and upon reasonable notice to confirm that the uses within theBuilding Structure conform to the uses that have been approved by the Board and the City, Section 4.00 - Nonliability for Approval. Plans and specifications are not approved for (1) engineering design, (2) compliance with zoning and building ordinances, and other applicable statutes, ordinances or governmental rules or regulations, (3) compliance with the requirements of any public utility, (4) any easements or other agreement, or (5) preservation of any view and by approving such plans and specifications neither the Architectural Committee, the members thereof, the Association, the Owners, the Board, Declarant, nor agents, employees, attorneys or consultants of any of the foregoing, assume liability or responsibility therefor, or for any defect in any Improvement constructed from such plans and }•'•; specifications or for any obstruction or impairment of view caused or created as the result of any Improvements approved by the Architectural Committee. Section 4.07 - Appeal. In the event plans and specifications submitted to the Architectural Committee aredisapproved thereby, the party or parties making such submission may appeal in writing to the Board within the time limitation stated in the Section entitled "Performance Dates" of this Article. The Board shall submit such request to the Architectural Committee for review, whose written recommendations areto be submitted to the Board. Section 4.08 - Evidence of Approval. £ j-j m (a) As provided elsewhere in the Association Management Documents, Declarant is not subject *' - to the provisions of the Association Management Documents pertaining to architectural control. AnyImprovements constructed by Declarant shall automatically be in compliance with the Association Management Documents and shall not be subject to further architectural control until and unless there hasbeen a change or alteration made by a successor in title to Declarant as to any Separate Interest in the material, texture, color or appearance of any such Improvement upon such Separate Interest or in any use of the Building Structures. Normal maintenance, repair or reconstruction by any successor in title to Declarant in the event of a destruction, in substantial conformance with the Improvements constructed by Declarant, shall not be deemed to be an Improvement that requires approval pursuant to the provisions of this Article. If the Improvements upon such Separate Interest comply with the provisions of the Association Management Documents, the Architectural Committee shall, upon request, issue a statement (hereinafter a "Compliance Statement") which will evidence such compliance. If any of the Improvements upon such Separate Interest do not comply with the provisions of the Association Management Documents, the Architectural Committee shall, upon such request, issue a statement (hereinafter a "Noncompliance Statement") delineating the corrective action that is required to bring such Improvements into compliance with the Association Management Documents. The Compliance Statement or Noncompliance Statement, asapplicable, must be provided within the time limitation set forth in the Section entitled "PerformanceDates" of this Article. In the event the Architectural Committee has issued a Noncompliance Statement as to any such Separate Interest, the Architectural Committee shall provide a Compliance Statement, upon request, after the corrective work has been satisfactorily completed which shall then evidence that theImprovements upon such Separate Interest comply with the provisions of the Association Management Documents. Any Compliance or Noncompliance Statement issued by the Architectural Committee shall beexecuted by any person or persons authorized by resolution of the Board or by the president and secretary of the Association. The signatures on a Compliance Statement shall be notarized. A Compliance Statement shall be conclusive evidence of compliance with the provisions of the Association Management Documents as to the Improvements described in the Compliance Statement and further approval of anysuch Improvements shall not be required unless there is a change or alteration in material, exterior appearance, color or texture in such Improvements or in the use of any Building Structure thereon. The Association shall be entitled to collect a fee to cover the cost of inspections and other costs in connectionwith the issuance of any Compliance Statements and Noncompliance Statements in accordance with the provisions of this Declaration. Failure to schedule an inspection or to issue a Compliance Statement orNoncompliance Statement for any reason within the time limitation established herein shall be deemed to mean that all existing Improvements do comply with the Association Management Documents and any such requesting Owner, prospective Owner, Mortgagee or prospective Mortgagee shall be entitled to receive a Compliance Statement evidencing such compliance. Section 4.09 - Performance Dates. Failure to make the inspections and responses required to be made pursuant to the provisions of this Article shall have the effect indicated below in this Section. (a) In the event the Architectural Committee fails to approve or disapprove plans and specifications within thirty (30) days after the same have been duly submitted in accordance witlwith any rules regarding such submission adopted by the Architectural Committee, such plans and specifications will be deemed approved. (b) The written request for an appeal to the Board of a decision rendered by the Architectural Committee must be received by the Board not more than fifteen (15) days following the final decision of the Architectural Committee. (c) The Board shall render its written decision in connection with a written appeal to the Board of a final decision of the Architectural Committee within forty-five (45) days following receipt of therequest for appeal. Failure of the Board to render such decision within such period of time shall be deemed a decision in favor of the appellant. (d) If for any reason an inspection has not been made within forty-five (45) days of notification by the Owner of the completion of an Improvement or the Owner requesting such inspection has not been notified of any noncompliance within thirty (30) days after such inspection, the Improvement shall be deemed to be completed in substantial conformancc with approved plans and specifications. (e) The Architectural Committee shall provide to any Owner, prospective Owner, Mortgagee or prospective Mortgagee of a Separate Interest who has submitted a written request therefor a statement as tothe compliance or noncompliance, as the case may be, of the Improvements upon such Separate Interest made by Owners other than Declarant with the provisions of the Association Management Documents provided that the Architectural Committee, after notice of not less than three (3) days delivered to the Owner of such Separate Interest, was afforded the right to enter upon the affected Separate Interest at a reasonable time specified by the Architectural Committee. Section 4.10 - Nonconformity. In the event an Improvement was commenced without the required approval of the Architectural Committee, or, if such Improvement was not completed within the time limitation established for such Improvement in the Architectural Standards or in substantial conformance with the approved plans and specifications, a notice of noncompliance or noncompletion shall be delivered to the violating Owner and the Architectural Committee shall correct the violation or take other appropriateaction in accordance with the procedure described in the Article entitled "Discipline of Members" of the Bylaws. Section 4.11 - Variances. The Declarant for as long as the Declarant has the right to appoint members to the Architectural Committee and thereafter the Board may authorize a variance from compliance with the architectural controls set forth in this Article when circumstances such as topography, natural obstructions, hardship, aesthetic, or environmental consideration may require; provided, however, that no variance from the use restrictions contained in the Article entitled "Use Restrictions" of this Declaration may be granted. Written evidence of such variance must be delivered to such Owner. If the variance is being granted by the Declarant, a copy of the notice to the Owner must be delivered to the Board for retention in the permanent records of the Association. If the variance is being granted by the Board, a copy of the resolution of the Board authorizing such variance must be retained in the permanent records of the Association. If such variances are granted, no violation of the covenants, conditions and restrictions contained in the Association Management Documents shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive anyof tiie terms and provisions of the Association Management Documents for any purpose except as to the particular Separate Interest and particular provision of this Article covered by the variance, nor shall itaffect in any way the Owner's obligation to comply with all government laws and regulations affecting his use of hii Separate Interest including, but not limited to, zoning ordinances and lot setback lines or requirements imposed by any governmental or municipal authority. Section 4.12 - Creation of Condominium Projects. Subject to approval by the City as required under the Section entitled "Amendment, Deannexation and Termination" of the Article entitled "Rights of City" of this Declaration and the approval of the Board, a Condominium Project may be created upon a Lot pursuant to Section 1350 et seq. of the California Civil Code or any successor statute thereof. Effective upon the conveyance of the first Condominium within any Condominium Project created pursuant to this Article, each Condominium within such Condominium Project shall be a Combined Property Interest as defined in this Declaration and the voting rights and the Assessments levied pursuant to this Declaration shall be apportioned to the owners of Condominiums in such Condominium Project in the manner provided in this Declaration. Section 4.13 - Reconstruction of Condominiums. The reconstruction after destruction by casualty or otherwise of any Condominium which is accomplished in substantial compliance with a condominium plan covering the Condominium Project in which such Condominium is situated shall not require compliance with the provisions of this Article. Such reconstruction shall be conclusively deemed to be in substantial compliance with such condominium plan if it has received the approval of the Subordinate CondominiumAssociation formed for such Condominium Project. This Section may not be modified or eliminated without the prior vote or written assent of a majority of the Condominium Owners; provided, however,except upon the occasion of such reconstruction in accordance with such condominium plan, the Architectural Standards, if any, shall apply to a Subordinate Condominium Association to the same extent as they apply to an individual Owner. Section 4.14 - Cqntrol in Master Association. No Improvements shall be made until there has been compliance with the provisions of the Article entitled "Architectural and Development Review Committee"of the Master Declaration, arid any architectural, landscape, and construction regulations and restrictions adopted by the Master Association Board of Directors pursuant thereto. ARTICLE V INSURANCE i Section 5.01 -Obligation to Insure. The Association shall obtain and maintain in effect (a) comprehensive general liability insurance policy to insure the Association against any liability incident to the ownership oruse of the Common Area or any other areas, (ii) fire and casualty insurance to cover all of the insurableImprovements within the Common Area, including fixtures and building service equipment that are part of such Common Area as well as common personal property and supplies belonging to the Association, (iii)worker's compensation insurance, to the extent that the same shall be required by law, for all employees of the Association, and (iv) fidelity bonds to cover losses resulting from dishonest or fraudulent acts on the part of anyone who handles or is responsible for funds held or administered by the Association. Section 5.02 -Waiver by Owners. All insurance obtained by the Association shall be maintained by the Association for the benefit of the Association, the Owners and the mortgagees as their interests may appear. As to each of said policies which will not be voided or impaired thereby, the Owners hereby waive and release all claims against the Association, the Board, other Owners, Declarant and agents andemployees of each of the foregoing, with respect to any loss covered by such insurance, whether or not caused by negligence or breach 01 any agreement by said persons, but to the extent of insurance proceeds received in compensation for such loss only. ,: 4 ARTICLE VI LIMITATION UPON THE RIGHT TO PARTITION AND SEVERANCE Section 6.01 - No Partition. The right of partition of the Common Area shall be suspended in accordance with the provisions of Section 1358 of the California Civil Code from and after the date Declarant hasconveyed fee title to the first Combined Property Interest in the Covered Property except that the right topartition shall revive and the Common Area can be sold as a whole upon the occurrence of any of the events set forth in Section 1359 of the California Civil Code. Provided, further, that if any CombinedProperty Interest is owned by two (2) or more co-tenants, nothing herein contained shall be deemed to prevent a judicial partition as between such co-tenants. Section 6.02 - No Severance. Each Owner agrees that he shall not, while this Declaration or any similar declaration is in effect, make any conveyance of less than the entire Combined Property Interest. Any deed, Mortgage or other conveyance that purports to convey less than all of the interests in the CombinedProperty Interest shall be deemed to transfer and convey the entire Combined Property Interest, including the omitted interests even though such omitted interests were not expressly mentioned in such conveyancedocument. The provisions of mis Section shall terminate on the date that judicial partition shall be decreed. Section 6rQ3 - Proceeds of Partition Sale. Whenever an action is brought for the partition by sale of theCommon Area, the Owners of such Common Area shall share in the proceeds of such sale. The share of each such owner shall be determined by comparing the amount of the decrease of such Owner's CombinedProperty Interest as determined by an independent appraisal of such Owner's Combined Property Interestconducted by an M.A.I, appraiser selected by the Board to the total of the decrease in value determined bysuch appraised valuation for all Combined Property Interests that include a fractional undivided fee interestin such Common Area. ARTICLE Vn REPAIR AND fvf AINTENAfTCE Section 7.01 - Bv Association. The Association acting through its Board and its officers shall have theduty to accomplish the following upon the Covered Property or other land in such manner and at such times as the Board shall prescribe: (a) manage, operate, control, maintain, repair, restore, replace and make necessary Improvements to or upon the Common Area, including, without limitation the following: (i) parking spaces, including any Additional Parking Spaces; (ii) Improvements that are being maintained for the benefit of any Special Benefits Area; (iii) drainage facilities in accordance with any requirements of the public official of the Public Agency responsible for flood control facilities; (iv) entry and other directional signs and monuments; and (v) private easements, streets, sidewalks, street lights and sewer facilities; (b) manage, operate, control, maintain, repair, replace and restore the Improvements described in any Supplemental Declaration; and (c) maintain all other areas, facilities, equipment, services or aesthetic components of whatsoever nature as may from time to time be requested by the vote or written consent of a majority ofthe voting power of the Association. The maintenance and repair of all Improvements pursuant to this Section shall be Common Expenses except as otherwise specified in this Declaration for costs which are to be paid in the form of SpecialAssessments, Reconstruction Assessments, Parking Space Assessments or Capital Improvement Assessments. Any Exhibits on any Association Management Documents depicting or delineating maintenance areas or obligations of the Association are for illustrative purposes only. The "as-built" condition of all such maintenance areas and obligations as built by Declarant shall Be controlling. The Association shall be relieved of its obligation to maintain any Improvements described herein if suchobligation is assumed by a Subordinate Association and is accomplished by such Subordinate Association to a standard that is acceptable to the Architectural Committee. Section 7,02 - By Owner. (a) All portions of a Separate Interest, including without limitation, the Building Structure and any appurtenant identification signs or appurtenances thereto, that are not required to be maintained by theAssociation pursuant to the provisions of this Declaration or any Supplemental Declaration shall be maintained, repaired, replaced, reconstructed and restored by the Owner thereof in good condition and repair in accordance with the Architectural Standards, any rules and regulations promulgated by the Board,and, if required by such Architectural Standards or rules and regulations, only after approval of theArchitectural Committee. (b) In the event of any construction, reconstruction or replacement of any Building Structure or other Improvements upon any Lot, the installation or restoration of any landscaping that is the responsibility of the Owner upon all portions of a Separate Interest which are visible from a street orCommon Area shall be completed on or before a date six (6) months from the date that the Building Structure or Improvements were completed. (c) An Owner shall be relieved of the obligation to perform any of the maintenance described inthis Section to the extent that the obligation to perform such maintenance has been assumed by the Association or a Subordinate Association pursuant to the provisions of its Subordinate Declaration. (d) If approved by the Architectural Committee, the obligation to maintain all or any portion of the Common Area within a Separate Interest may be assumed by the Owner of such Separate Interest. The Architectural Committee may require, as a condition to its approval, that such Owner bear all of the costs in connection with the assumption of such obligation, including, without limitation, the cost ofinstalling any retaining walls that may be necessary for the stabilization of any additional landscaping Improvements thereon, the cost of converting the irrigation system, as well as the cost of preparing and recording a document executed by such Owner and the Association, evidencing the modification of the Common Area. Section LQ3 - Implementation of NPDES. In order to implement the City's requirements in connection with the National Pollutant Discharge Elimination System (the "NPDES"), the following best management practices are established to reduce surface pollutants to an acceptable level prior to discharge to sensitive areas. In compliance with such requirements, the Owners, by acceptance of fee title to their Combined Property Interest, and the Association acknowledge and agree that: (a) the disposal of any toxic and other pollution materials such as gasoline, motor oil, antifreeze, solvents, paints, paint thinners, wood preservatives and other such fluids (hereinafter "ToxicMaterials") in a manner that will result in the discharge of such Toxic Materials through the storm drain system is prohibited; (b) Toxic Materials are to be disposed of in compliance with restrictions and requirements established from time to time by any of the responsible Public Agencies; the Covered Property shall be maintained in a manner and to a standard that complies with 'DBS program which requirements include that (i) street sweeping be utilized for the removal i areas, and '. kept clean of (d) the Association shall distribute to the Owners any materials or pamphlets provided to the Association by any of the responsible Public Agencies for that purpose and shall include in any of its newsletters and mailings to the Owners from time to time reminders that the requirements of foregoing provisions and other requirements of the NPDES program must be complied with. Section 7.04 - Repair of Damage. In the event the Board shall determine that any portion of the Covered Property required to be maintained by the Association has been damaged or destroyed by any negligent or malicious act or omission of any Owner or the Easement Users of such Owner, such Owner shall be responsible for the cost of repairing such damage in accordance with the Article entitled "Discipline of Members* of the Bylaws. Any increase in insurance payable by the Association which is the result ofdamage by any negligent or malicious act or omission of a particular Owner or any of such Owner's Easement Users shall also be paid by such Owner. The Board shall have the power to levy a Penalty Assessment against any such Owner for the cost of repair or for an amount equal to any such increase in premium. Section 7.0S - Nnncpmpliance hy Owner. In the event that an Owner fails to accomplish any installation, maintenance or repair required by this Article, the Board shall give to such Owner a notice describing such deficiency and give such Owner an opportunity to have a hearing as provided in the Section entitled 'Enforcement* of the Article entitled "Discipline of Members" of the Bylaws. Section 7.06 - Transfer of Maintenance Obligation. The obligation to perform the maintenance of any Improvements that are to be maintained by the Association pursuant to the provisions of any of Association Management Documents shall be transferred to the Association, and the Association shall be deemed to have accepted the obligation to maintain such Improvements, when (i) Regular Assessments have commenced against the Separate Interests within the Covered Property pursuant to the provisions of this Declaration, and (ii) such Improvements have beencompleted in substantial conformance with the plans and specifications therefor. The issuance of a certificate by the architect who designed any such Improvements stating that such Improvements are in substantial conformance with the original plans and specifications shall be satisfactory evidence of such completion. Section 7.07 - Noncompliance by Subordinate Association. In the event that a Subordinate Association fails to accomplish any maintenance, repair, restoration or replacement of Improvements in the manner and to the condition required under the Section entitled "By Subordinate Association* of this Article, the Association shall have the right, but not the obligation, to perform any of the corrective work required (i)if the Subordinate Association fails to commence the correction of the deficiency within thirty (30) days after the delivery of a written notice therefor from the Association, or (ii) if, upon commencement, theSubordinate Association fails to diligently prosecute the correction of such deficiency to an acceptable conclusion. In the event the full cost of performing any such activity has not been reimbursed to theAssociation within thirty (30) days after the delivery to the Subordinate Association of a statement therefor, the correction of the deficiency shall be deemed to be a Special Benefit to all of the Owners whoare members of such Subordinate Association, the Combined Property Interests of such members shall comprise a Special Benefits Area and the costs incurred in effecting the correction of the deficiency shallbe apportioned to all of such Owners as a Special Assessment in the manner set forth in Section 3.04 of this Declaration. ARTICLE VHI EASEMENTS AND RIGHTS Section 8.01 - Nature of Rasamenrc. Unless otherwise set forth herein, all easements reserved to Declarant herein shall be nonexclusive. Section 8.02 - Oil and M'ngraljlights. There is hereby reserved to Declarant, together with the right to grant and transfer the same, all oil, minerals, natural gas, and other hydrocarbons by whatsoever nameknown, geothermal resources, metalliferous or other ores, and all products derived from any of the foregoing, that may be within or under the Covered Property, and all rights associated with the foregoing,together with the perpetual right of drilling, mining, exploring and operating therefor and storing in and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than the Covered Property, oil or gas wells, tunnels and shafts into, through or across the subsurface of the Covered Property and to bottom such whipstocked or directionally drilledwells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to rednll, retunnei,equip, maintain, repair, deepen and operate any such wells or mines without, however, the right to drill, mine, store, explore and operate through the surface or the upper five hundred (500) feet of the subsurfaceof the Covered Property. Section 8.Q3 - E*«r«"fnf* for Construction and Marketing Activities. There is hereby reserved to Declarant, together with the right to grant and transfer same: (a) Improvements. Easements over the Common Area for the purpose of constructing, erecting,operating and maintaining thereon, therein or thereunder roads, streets, walks, driveways, parkways and park areas, electric, telephone, cable television, water, gas, irrigation lines, sanitary sewer lines and drainage facilities; (b) Cable Television. The right to emplace on, under or across the Common Area transmission lines and other facilities for a cable television or a community antenna television system and the right to enter upon the Covered Property to service, maintain, repair, reconstruct and replace said lines orfacilities; (c) Construction and Safes. Easements for construction, display, maintenance, sates and exhibitpurposes over the Common Area other than Exclusive Use Common Area in connection with the erection and sale or lease of Combined Property Interests within the Covered Property provided, however, thatsuch use shall not be for a period beyond the sale by Declarant of all Combined Property Interests within the Covered Property, (d) Utilities Shown on Tract Map. Easements over the Covered Property for the installation andmaintenance of electric, telephone, cable television, water, gas, sanitary sewer lines and drainage facilities as shown on any recorded final tract or parcel map covering the Covered Property; and (e) Construction of Additional Parking Spaces. Easements over Lot 9 of Tract No. 92-06 for construction, maintenance, repair, replacement and reconstruction of Additional Parking Spaces. The easements reserved to Declarant pursuant to this Section shall not (i) unreasonably interfere with the use and enjoyment by the Owners of the Covered Property, or (ii) prohibit or unreasonably restrict accessto a public street from any Separate Interest. Section 8.04 - Easements for Owners and Easement Users. There is hereby reserved to Declarant, together with the right and obligation to grant and transfer same to each Owner and the other Easement Users of such Owner upon the Close of Escrow of the Separate Interest to which each such easement is appurtenant, easements as follows: (a)tof Ingress and Egress. Easements on and upon the Nonexclusive Use Common Area for the benefit of all Owners and their Easement Users, which shall be appurtenant to each Separate Interest of the Covered Property, for ingress, egress, use and enjoyment (which includes, without limitation, the unrestricted right of ingress and egress over the Nonexclusive Use Common Area of Lot 9 of said Tract Map No. 92-06 to such Owner's Separate Interest). (b) Ejtchjsjve Use Common Area Easement. Easement on and upon the Exclusive Use Common Area designated as Allocated Parking on Exhibit B attached hereto. The Allocated Parking designated on a particular page of said Exhibit B, when granted by Declarant, shall be Exclusive Use Common Area appurtenant to the particular Lot designated on said page on Exhibit B for the use of the Owner thereof for parking purposes. For example, the Allocated Parking designated on Exhibit B-lattached hereto, when granted and conveyed by Declarant, shall be the Exclusive Use Common Area thatis appurtenant to Lot 1 and is for the use of the Owner thereof for parking purposes. Such easements when granted and conveyed by Declarant pursuant to this Section shall be subject to all ofthe easements, covenants, conditions, restrictions and other provisions contained in the Association Management Documents, including any prior rights of the Association. (a) ftepair and Maintenance. Easement over the Common Area for the purpose of performing the repair and maintenance obligations described in the Article entitled "Repair and Maintenance" of this Declaration and over the Covered Property for emergency repairs or other work reasonably necessary for the proper maintenance of the Covered Property; (b) Discharge Obligations. Easement over the Covered Property for the purpose of permitting the Association to discharge any other obligations and powers as described in the Association Management Documents; (c) Construction of Additional Parking Spaces. Easements over Lot 9 of Tract No. 92-06 for the construction of Additional Parking Spaces arid for the maintenance, repair, replacement and reconstruction of all such Additional Parking Spaces, to include without limitation, the right to construct, maintain, repair, replace and reconstruct parking structures upon Lot 9 of Tract No. 92-06 for the purpose of creating such Additional Parking Spaces provided that the exercise of such easement rights does shall Section 8.0fl -Easements for Association. There is hereby reserved to Declarant, together with the right '*. TS-to grant and transfer the same to the Association, easements over the Covered Property, or portion thereof, as follows: iI (0 D m 30mo§om 8 •< O m 30 'Fr;-V^ .•_.. t not (i) unreasonably interfere with the use and enjoyment over the Common Area described in thisDeclaration that are being granted to the Owners, or (ii) prohibit or unreasonably restrict access to a public street from any Separate Interest; (d) Improvements. Easements over the Common Area for the purpose of constructing additional Improvements thereon, including without limitation, erecting, operating and maintaining thereon, therein orthereunder roads, streets, walks, driveways, parkways and park areas, electric, telephone, cable television, water, gas, irrigation lines, sanitary sewer lines and drainage facilities and for the maintenance, repair,replacement and reconstruction of any such Improvements-, and (e) Pnhle Television. The right to emplace on, under or across the Common Area transmission lines and other facilities for a cable television or a community antenna television system and to service, maintain, repair, reconstruct and replace said lines or facilities. Any damage to Improvements upon the Covered Property resulting from the exercise of any of the easement rights granted pursuant to this Section shall be repaired by the entity exercising such rights within a reasonable time after the occurrence of such damage unless otherwise specified in the document by which such easement was conveyed. Section 8.06 - ytjlities and Cable Television. Wherever sanitary sewer house connections, water houseconnections, air conditioning connections or ducts, electricity, gas, telephone and cable television lines or drainage facilities are installed within the Covered Property, the Association or any Owner as the owner of any property served by said connections, lines or facilities shall have the right, and there is herebyreserved to Declarant, together with the right to grant and transfer the same to any such owner, an easement to the full extent necessary for the full use and enjoyment of such portion of such connectionswhich service such owner's property, and to enter, or have utility or cable television companies enter upon |? any portion of the Covered Property including without limitation, upon the Separate Interest in or upon i; which said connections, lines or facilities or any portion thereof lie, to repair, replace and generally '; maintain said connections, lines and facilities as and when the same may be necessary, provided that any V,damage caused by such entry shall be repaired by such owner, utility or cable television company as j.promptly as possible after completion of work thereon. g>. Section 8.07 - public Bicycle and Pedestrian Trails. There is hereby reserved to Declarant, together with | the right to grant and transfer the same, an easement for public ingress and egress over any bicycle, |;pedestrian, equestrian or other trails shown on any recorded final tract or parcel map covering the Covered | Property. The reservation of this easement shall not imply any right of public use of the Covered Property |- or Improvements. l~ ii;Section 8.08 - Subordinate Association Rights. There is hereby reserved to Declarant together with the jf right and obligation to grant and transfer same to the appropriate Subordinate Association, easements over ? the Nonexclusive Use Common Area for ingress and egress and for the purpose of permitting such ! w (0 O I i-oi 81 I wit* iiuu«AVAiiaAW w«» wwimin/ii niva AVI itigiv** a*iv v£'v«a AIIW »wi wiv i/uif/va^ vi i^itiiiiiuig »IAVII ji . ^ Subordinate Association to discharge its maintenance and other obligations described in its Subordinate I O Declaration. ; r" 'L "1 Section R.09 - Subordination. Except as may be otherwise provided in the. grant or dedication of an '': '• 2 casement, any easement conveyed in favor of a Public Agency shall be prior and superior to all other 'easements described herein, and any easement conveyed pursuant to the provisions of this Article to a utility company shall be prior and superior to all other easements described herein except any easement infavor of a Public Agency. Grantor and any grantee by acceptance of a conveyance of any easement described in this Declaration, whether or not so stated in such conveyance document, agree that such easement shall be subordinate to any such prior and superior easements and further agree to execute any .to? document acknowledging such subordination that may be required by the holder of any such prior easement. Section 8.10 - Delegation of Use. Any Owner may delegate his right of enjoyment to the Nonexclusive Use Common Area to his tenants who occupy his Separate Interest or to a vendee under a land sales contract subject to the covenants, conditions and restrictions contained in the Association ManagementDocuments and the rules and regulations adopted by the Board. In the event and for so long as an Owner delegates said rights of enjoyment to his tenants or a vendee, said Owner shall not be entitled to the use and enjoyment of any facilities or equipment belonging to or controlled by the Association for the use and enjoyment of its Members. Section 8.11 - Waiver of Use. No Owner may exempt himself from personal liability for Assessments duly levied by the Association, or release the Combined Property Interest owned by him from the liens, charges and other provisions of the Association Management Documents by waiver of the use and enjoyment of the Nonexclusive Use Common Area or the abandonment of his Combined Property Interest. ARTICLE IX USE RESTRICTIONS Section 9.01 - Permitted\Prohibited Uses. No part of a Separate Interest shall be used or caused to be used or allowed or authorized in any way, directly or indirectly, for any purposes other than the light and medium-industrial uses, research and development uses, industrial support and service uses and professional office uses, consistent with the zoning requirements and other applicable laws, ordinances, acts, rules, orders and regulations of the local Public Agency as such purposes may be further restrictedpursuant to the provisions of this Declaration or the Master Declaration. The permitted uses shall include accessory structures or uses which are customarily incidental or necessary to the permitted main uses orany other similar use which is found compatible with the purposes set forth in the foregoing provisions of the Declaration and are approved by the City and Board. The prohibited uses shall be as denned in Section 8.2.2 of the Master Declaration. In the event of any dispute as to whether a particular use isprohibited or permitted upon a particular Separate Interest under the provisions of this Article, said dispute shall be resolved by the Board and the findings of the Board as to such permitted and/or prohibited use shall be final and shall be evidenced in a Supplemental Declaration which shall be recorded in the Official Records against such Separate Interest. Section 9.02 - Signs. No sign or billboard of any kind shall be displayed to the public view on any portion of the Covered Property except (1) such signs as may be used by Declarant or its sales agents in connection with the development of the Covered Property and sale of the Separate Interests, and (2) signs that are installed or displayed by the Association; provided, however, that in accordance with Section 712 of the California Civil Code, an Owner may display on his Separate Interest, or on real property owned by others with their consent, or both, signs which are reasonably located, in plain view of the public, are of reasonable dimensions and design, do not adversely affect public safety, including traffic safety, and which advertise the property for sale, lease, or exchange, or advertise directions to the property or the Owner's or agent's address and telephone number. As provided in said Section 712 of the California Civil Code, a sign which conforms to an ordinance adopted in conformity with Section 713 of the California Civil Code shall be deemed to be of reasonable dimension and design. Declarant shall repair any damage to or complete any restoration of the Covered Property caused or necessitated by the display of signs by Declarant or its sales agents within a reasonable time after the occurrence of such damage or need for restoration. Section 9.Q? - Nuisance. No noxious or offensive trade or activity shall be permitted upon any part of the Covered Property, nor shall anything be done thereon which shall in any way interfere with the intended t ••••• *j enjoyment of each of the Owners of his respective Separate Interest, No industrial or commercial operation or use shall produce noise at a level grater than the standards established by the appropriate localPublic Agency. Section 9.04 - Temporary Structures. No structure of a temporary character, trailer, tent, shack, barn, orother out-building shall hereafter be used on any Separate Interest at any time, either temporarily or permanently, without the prior written approval of the Architectural Committee. §ecrionj).05 - Usg oLCorompn Area. The Board may establish reasonable rules and regulations as it deems appropriate in its sole discretion with regard to the use and enjoyment of any portion of the Common Area that is not Exclusive Use Common Area which include, but are not limited to the regulation of the admission and parking of vehicles within the Common Area, including the assessment of Penalty Assessments to Owners who violate, or whose Easement Users violate, such rules. Sectioji9.06 - Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept upon the Covered Property except as may be permitted as to the Covered Property pursuant to the provisions of the Section entitled "PermittedVProhibited Uses" of the Article entitled "Use Restrictions* of this Declaration. Sectipn 9J)7 - Restrictions on Drilling Operations. No oil drilling, oil development operations, oil refining, quarrying, or mining operations of any kind shall be permitted upon or in the Covered Property nor, subsequent to the recording of this Declaration, shall oil wells, tunnels, or mineral excavations or shafts be installed upon the surface of the Covered Property or within five hundred (500) feet below thesurface of such properties. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted upon the Covered Property. Section 9.Q8 - Unsightly Items. All weeds, rubbish, debris, or unsightly material or objects of any kind shall be regularly removed from the Separate Interests and shall not be allowed to accumulate thereon. All refuse containers, trash cans, woodpiles, storage areas, machinery and equipment shall be prohibited uponany Separate Interest except in accordance with the Association Rules. Section 9.09 - Antennae; R.ppf Structures. (a) Antennae. No television, radio, or other electronic towers, aerials, antennae or devices of any type for the reception or transmission of radio or television broadcasts or other means of communication shall hereafter be erected, constructed, placed or permitted to remain on the Covered Property unless they are (1) contained within a building or underground conduits, (2) completely obscured from view from any streets or any other portion of the Covered Property, or (3) screened from view by an appropriate screen that has been approved in writing by the Architectural Committee. (b) Solar Energy Systems. As provided in Section 714 of die California Civil Code, reasonable restrictions on the installation of solar energy systems that do not significantly increase die cost of the system ot significantly decrease its efficiency or specified performance, or which allow for an alternative system of comparable cost, efficiency, and energy conservation benefits may be imposed by the Architectural Committee. Whenever approval is required for the installation or use of a solar energy system, the application for approval shall be processed and approved by the Architectural Committee in the same manner as an application for approval of an architectural modification to (he property, and shall not be willfully avoided or delayed. "Solar energy system" as used herein shall mean as such term is defined in Section 801.5 of the California Civil Code. Failure to comply with Section 714 of the California Civil Code could result in the payment of actual damages and a civil penalty and the prevailing party in any action to enforce compliance with said Section 714 of the California Civil Code shall also be awarded reasonable attorneys fees. 0Section 9.10 * Drainage. An Owner shall not alter the drainage of water which exists pursuant to the drainage plan originally created at the time of the initial sale of his Combined Property Interest by Declarant except through the use of a positive drainage device which does not materially affect theconcentration or flow direction of drainage water under said drainage plan. Section 9.J1 -Leases. Any agreement for the leasing or rental of a Combined Property Interest (hereinafter in this Section referred to as a "lease") shall be in writing and shall provide that the terms ofsuch lease shall be subject in all respects to the provisions of the Association Management Documents. Any Owner who shall lease his Combined Property Interest shall be responsible for assuring complianceby such Owner's lessee with the Association Management Documents. Section 9.12 - View. Each Owner by acceptance of a deed or other conveyance of a Combined PropertyInterest acknowledges that any construction or Improvement by Declarant, the Association or any other Owner, or any owner of any other property may change, impair, obstruct or otherwise affect any view thatsuch Owner may have enjoyed at the time of the purchase of his Combined Property Interest. The Association Management Documents do not contain any provisions intended to protect any view or to guarantee that any views that an Owner may have enjoyed will not be impaired or obstructed in the futureby changes to other property. Each Owner further acknowledges that any rights acquired do not include .the preservation of any view and further consents to such obstruction and/or impairment. No representations or warranties of any kind, express or implied, have been given by Declarant, or itsofficers, employees, partners, subsidiaries, affiliated companies, or directors and agents of any of them in connection with the preservation of views and each Owner and/or the Association agree to hold Declarant, and all of such officers, employees, partners, subsidiaries, affiliated companies, and directors and agents ofany of them free of liability from such damages, costs, expenses or charges incurred in connectiontherewith, such as, but not limited to, attorneys' fees and court costs and costs arising from any changes, obstruction or impairment of the view from such Owner's Combined Property Interest. Section 9.13 -Subordinate Association Use Restrictions. Nothing herein shall prevent a declarant under aSubordinate Declaration from adopting use restrictions for its portion of the Covered Property that aremore restrictive than those set forth herein except that such restrictions shall in no way modify the provisions hereof. ARTIQLE X DESTRUCTION OF IMPROVEMENTS Section 10.01 - Definitions. The following terms used in this Article are defined to mean as follows: (a) "Insured Improvements" shall mean the Improvements on the Covered Property insuredunder the fire and casualty insurance policy maintained by the Association and shall consist of Association Common Area Improvements and Common Facilities. (b) "Affected Association Common Area Improvements" shall mean partially or totally destroyed insured Association Common Area Improvements. (c) "Affected Common Facility" shall mean a partially or totally destroyed insured Common Facility. ^ (d) "Acceptable Range of Reconstruction Cost" shall mean that the amount of the insuranceproceeds paid for partially or totally destroyed Insured Improvements together with the amount of any deductible amount designated in the fire and casualty insurance policy maintained by the Association totals am ** J> / ^ Iat least ninety percent (90%) of the estimated cost to repair, replace or reconstruct such partially or totally I destroyed Insured Improvements. \ (e) "Substantial Destruction" shall mean a destruction of Insured Improvements representing at f. least seventy-five percent (75 %) of the current replacement cost value of all Insured Improvements upon ^ the Covered Property. It Sectton.10,.02 - Board Action. In the event any Insured Improvements are damaged, the Board shall take |;the following action: *>>. (a) Acceptable Range of Reconstruction Cost. The Board shall ascertain the cost of repair, % replacement or reconstruction of such Insured Improvements. If deemed necessary or appropriate by the | Board, fixed price bids will be obtained from at least two (2) reputable contractors, which bids may | include the obligation of the contractor to obtain a performance bond. The Board shall further have full | authority to negotiate with representatives of the insurer and to make settlement with the insurer for less *' than fuu insurance coverage on the damage. Any settlement made by the Board in good faith shall be * binding upon all Owners. After the settlement has been approved by the Board, any two (2) directors of v the Association may sign a loss claim form and release form in connection with the settlement of a loss | claim. | (b) Notice of Reconstruction Assessments. The Board shall promptly cause notice to be £ delivered to all Owners if, during the process of determining the Acceptable Range of Reconstruction 'iCost, it appears likely that the repair, replacement or reconstruction of a partially or totally destroyed I Insured Improvement will result in the levying of Reconstruction Assessments. Such notice shall specify tj the estimated amount of any such Reconstruction Assessment. f (iv) failure or inability to make a determination as to the Acceptable Range of Reconstruction Cost within sixty (60) days of the date of the destruction. Section 1Q.03 - Reconstruction. Unless Reconstruction Assessments must be levied, the repair, replacement or reconstruction of the damaged or destroyed Insured Improvements shall commence as soon as practicable following a determination thai the requirements of the Acceptable Range of Reconstruction Cost have been met. If Reconstruction Assessments must be levied to cover the cost of repair, replacement or reconstruction of any of such damaged or destroyed Insured Improvement, such work shall commence as soon as practicable after ten (10) days have elapsed following the^delivery of the notice of the Reconstruction Assessment to all Owners unless it is necessary to call a special meeting or distribute ballots for action to be taken without a meeting to determine whether to proceed with such work pursuant to the foregoing Section of this Article. If it is necessary to call a special meeting or distribute ballots for action to be taken without a meeting to determine whether to proceed with such work, such work of O(c) Vote o( Members. The Board shall call a special meeting or shall distribute written ballots J;| •. to the Owners for action to be taken without a meeting to determine whether not to proceed with the £j 30repair, replacement or reconstruction of partially or totally destroyed Insured Improvements upon the fe fl*happening of any one of the following events: (i) a Substantial Destruction; (ii) a determination that the requirements of the Acceptable Range of Reconstruction Cost have not been met; (iii) receipt of a written request of Owners representing at least five percent (5%) of the total voting power of the Owners requesting such action; or I O m3371 repair, replacement or reconstruction shall commence as soon as practicable following the date established in accordance with the provisions of the Bylaws for the date of such special meeting or for the date established for voting by ballot for action to taken without a meeting unless not less than sixty-sevenpercent (67%) of the voting power of the Owners has determined not to proceed with such work of repair, replacement or reconstruction. Section 10.04 - Proceeds of Insurant. All insurance proceeds covering the Insured Improvements shall be paid to the Association to be used for the benefit of Owners, mortgagees and others as their respective interests shall appear in such Insured Improvements. In the event any portion of the insurance proceeds were paid to a mortgagee, an amount equal to the amount paid to such mortgagee shall be paid to the Board by the Owners unless there is a distribution of insurance proceeds to the Owners as hereinafterprovided. In the event any Owner fails to pay such amount within thirty (30) days of a written demand therefor by the Association, the Board may levy a Special Assessment against such Owner and his Combined Property Interest for such amount. Section 10.05 - Reconstruction Assessments. If necessary, the Board shall levy a Reconstruction Assessment against the Owners at such time and in such amount determined necessary to cover the costs of repair, replacement or reconstruction in excess of insurance proceeds. Section 10.06 - Compliance with Plans. Any reconstruction undertaken pursuant to this Article shall substantially conform to the original plans and specifications unless other action is approved by a majority of the voting power of the Association. Sectjon 10.07 - Distribution of Insurance Proceeds. In the event there has been a decision not to repair, replace or reconstruct any partially or totally destroyed Insured Improvements, the insurance proceeds shallbe distributed to the Owners of the Combined Property Interest that includes such Insured Improvement' subject to the prior rights of all Mortgagces'holding Mortgages encumbering such Combined PropertyInterests. AUocable proceeds paid to the Owners and their respective Mortgagees shall be apportioned according to the relative decrease in values of the Combined Property Interests affected by the damage and/or destruction as determined by an M.A.I. appraiser selected by the Board after first deducting therefrom fees and expenses related to clearing any debris and restoring the remaining Common Area to a clean and presentable condition. Any insurance proceeds allocated to a Combined Property Interest thatare to be paid to a Mortgagee shall be paid to each Mortgagee of such Combined Property Interest in the order of the recorded priority of the Mortgage of each such Mortgagee on the Affected Combined PropertyInterest. In the event of any such decision not to repair, replace or reconstruct any destroyed insured Improvements, the right of any Owner to partition through legal action as described in the Article hereof entitled "Limitations Upon the Right to Partition and Severance* shall forthwith revive. Section 10.08 - Payment of Mortgagees. Any insurance proceeds paid to a Mortgagee pursuant to this Article shall be paid in the amount required by such Mortgagee, but not to exceed (I) the outstanding indebtedness secured by the Mortgage of said Mortgagee, or (2) the insurance proceeds allocated to theCombined Property Interest secured by such Mortgage as hereinabove provided in this Article, whichever of (i) or (ii) is the lesser. ARTICLE XI EMINENT DOMAIN Section 11.Q1 - Definition of Taking. The term "taking" as used in this Article shall mean condemnation by eminent domain, or by sale under threat thereof, of all or part of the Common Area. F*-t* ^~ ' I. ' ' ' Section 11.02 - Represtmtatiori fry Bo^rd,. In the event of a taking, the Owners hereby appoint the Board and such persons as the Board may delegate to represent all of the Owners in an action to recover all awards. No Owner shall challenge the good faith exercise or the discretion of the Board in fulfilling its duties under this Article. 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 in lieu of engaging in a condemnation action. Section 11.03 - Award. Any awards received on account of the taking of Common Area other than Exclusive Use Common Area shall be paid to the Owners and their respective Mortgagees according to the relative decrease in values of the Combined Property Interests affected by the condemnation as determinedby an M.A.I, appraiser selected by the Board after first deducting therefrom fees and expenses related to the condemnation proceedings. Upon a taking which renders more than seventy-five percent (75%) of the Common Area incapable of being restored to at least ninety-five percent (95%) of the condition prior to the taking, the right of any Owner who owns a fractional fee interest therein to partition through legal action as described in the Article entitled "Limitations Upon the Right to Partition and Severance* of this Declaration shall forthwith revive. The determination as to whether the Common Area partially taken is capable of being so restored shall be made by the Board and this decision shall be final and binding on all owners and Mortgagees. Section 11.04-Inverse Condemnation. The Board is authorized to bring an action in inverse condemnation. In such event, the provisions of this Article shall apply with equal force. ARTICLE XH MERGERS. ANNEXATIONS AND DEANNEXATIONS Section 12.0} - Mergers or Consolidations. Upon a merger or consolidation of the Association with another association which merger or consolidation must be approved by the vote or written assent of sixty-seven percent (67%) of the total voting power of Members and of the Declarant as such voting power isdetermined pursuant to the Section entitled "Voting Rights' of the Article entitled "The Association* of this Declaration, the Association's properties, rights and obligations may, by operation of law, betransferred to the surviving or consolidated association, or, alternatively, the properties, rights and obligations of another association may, by operation of law, be added to the properties, rights andobligations of the Association as a surviving corporation pursuant to a merger. The surviving or consolidated association may administer the covenants, conditions and restrictions established by thisDeclaration within the Covered Property, together with the covenants, conditions and restrictions established upon any other property as one plan. Section 12.02 - Deannexation. Subject to approval by the local Public Agency, any Common Area orSeparate Interest may be deleted or deannexed from the coverage of this Declaration at any time by Declarant as long as Declarant owns the portion of the Covered Property being deannexed. Section 12.0ft - Severance of a Lot. Any segment of the Covered Property that has been released from the coverage of the Master Declaration pursuant to the provisions of Section 13.8 thereof may also be releasedfrom the coverage of this Declaration by the recordation of an instrument releasing such portion of the Covered Property. Thereafter, such Common Area or Separate Interest, or portion thereof, shall be released free and dear of the provisions of this Declaration with the same force and effect as though suchCommon Area or Separate Interest, or portion thereof, had not originally been included within the Covered Property. After any such release, no Owner, transferee, Easement User, lessee or licensee of any such Common Area or Separate Interest shall be bound by or entitled to enforce or have any right orbenefit pursuant to this Declaration. For purposes of this Section, a Separate Interest or Common Area shall be entitled to be severed from the Canyon Pacific portion of the Carlsbad Oaks Business Center and released from the coverage of this Declaration when such property is severed from the Carlsbad Oaks Business Center and released from the coverage of the Master Declaration. Section 12.04 - Annexation Pursuant to Approval. Upon approval in writing pursuant to the vote or written assent or sixty-seven percent (67%) of the total voting power of Members and of the Declarant assuch voting power is determined pursuant to the Section entitled "Voting Rights" of the Article entitled "The Association" of this Declaration, any person who desires to add real property to the plan of this Declaration and to subject such property to the jurisdiction of the Association, may file or record a document effecting such annexing. Thereafter all of the property described in said annexation document shall be subject to the functions, powers and jurisdiction of the Association and thereafter all of such annexed property shall be part of the Covered Property and all of the Owners of Separate Interests therein shall automatically be Members. The annexation document shall contain such complementary additions or modifications of Die covenants, conditions and restrictions of this Declaration as may be necessary to reflect the different character, if any, of the property that is being annexed as are not inconsistent with the plan of this Declaration and may describe additional Common Area that is to be owned in common by some or all of the Owners of such property that is being annexed. In no event, however, shall any such annexation document revoke, modify or add to the covenants established by this Declaration or by any prior Supplemental Declaration with respect to property that is already covered by the Declaration at thetime of die recording of such annexation document. ARTICLE MORTGAGEE PROTECTION Section 13.01 - Priority of Mortgage Lien. No breach of the covenants, conditions or restrictions, nor the enforcement of any Hen provisions contained in this Declaration, shall affect, impair, defeat or render invalid the lien or charge of any mortgage made in good faith and for value encumbering any portion of the Covered Property, but all of said covenants, conditions and restrictions shall be binding upon andeffective against any Owner whose title is derived through foreclosure or trustee's sale, or otherwise, withrespect to such portion of the Covered Property. Section 13,02 - Curing Defaults. In addition to the rights and protections given to a First Mortgageepursuant to the Section entitled "Subordination of Assessment Liens" of Article III of this Declaration, a Mortgagee, or the immediate transferee of such Mortgagee, who acquires title by judicial foreclosure, deedin lieu of foreclosure or trustee's sale shall not be obligated to cure any breach of the provisions of this Declaration which is Honourable or of a type which is not practical or feasible to cure. The determination of the Board made in good faith as to whether a breach is noncurable or not feasible to cure shall be final and binding on all Mortgagees. Section I^p3 - Conflicts. In the event of any conflict between any of the provisions of this Article and any of the other provisions of the Association Management Documents, the provisions of this Article shall control. ARTICLE XIV GENERAL PROVISIONS Section 14.01 - Enforcement. The Association, Declarant or any Owner shall have the right of action against any Owner, and any Owner shall have a right of action against the Association to enforce by proceedings at law or in equity, all restrictions, conditions, covenants and reservations, now or hereafter imposed by the provisions of the Association Management Documents or any amendment thereto, including the right to prevent the violation of such restrictions, conditions, covenants, or reservations and the right to CO recover damages or other dues for such violation except (i) that Owners shall not have any right of enforcement with respect to Assessment liens, (ii) with respect to architectural control and AssociationRules, the Declarant for as long as Declarant has the right to appoint the Architectural Committee and thereafter the Association shall have the exclusive right to the enforcement thereof unless the Declarant orAssociation, as applicable, refuses or is unable to effectuate such enforcement, in which case any Owner shall have the right to undertake such enforcement, and (iii) with respect to compliance with theordinances, statutes and regulations of the Public Agencies for the use, storage and disposal of hazardous materials, each Owner and the Association shall have the right, but not the obligation, to report any violation of any such ordinance, statute or regulation, but the enforcement thereof shall be accomplished by the responsible Public Agency. Notwithstanding the foregoing or any other provision of the Association Management Documents, judicial proceedings must be instituted before any items ofconstruction can be altered or demolished in connection with any summary abatement or similar means of enforcing restrictions against any Separate Interest Improvement or its use. Secn'oqJ4.Q2 • No Waiver. Failure to enforce any covenant, condition, restriction or reservation contained in any of the Association Management Documents in any certain instance or on any particularoccasion shall not be deemed a waiver of such right on any such future breach of the same or any other covenant, condition, restriction and reservation. Section 14.03 - Cumulative Remedies. All rights, options and remedies of Declarant, the Association, the Owners or Mortgagees under the Association Management Documents are cumulative, and no one of them shall be exclusive of any other, and Declarant, the Association, the Owners and the Mortgagees shall have the right to pursue any one or all of such rights, options and remedies or any other remedy or relief which may be provided by law, whether or not stated in (he Association Management Documents. Section 14.04 - Severability. Invalidation of any one or a portion of these covenants, conditions, restrictions or reservations by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect. Section 14.05 - Term.. The covenants, conditions and restrictions of this Declaration shall run with and -bind the Covered Property and shall inure to the benefit of and be enforceable by the Association or anyOwner, their respective legal representatives, heirs, successors and assigns, for a term of sixty (60) yearsfrom the date this Declaration is recorded, after which time said covenants, conditions and restrictions shall be automatically extended for successive periods of ten (10) years, unless an instrument signed by not less than sixty-seven percent (67%) of the then Owners has been recorded agreeing to terminate said covenants, conditions and restrictions. Notwithstanding the foregoing, the termination of all or any of the covenants, conditions and restrictions described in this Declaration shall not terminate or affect any of the easement rights described in this Declaration that were granted and conveyed by the Declarant prior to the termination of any such covenants, conditions and restrictions. Section 14-°6 - Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a plan for the development of a light industrial/commercial community and for the maintenance of the Covered Property. The Article and Section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction. Section 14.07 - Singular Includes Plural. Whenever the context of this Declaration requires the same, the singular shall include the plural and the masculine shall include the feminine and the neuter. Section 14.08 - Nuisance. The result of every act or omission where any provision, condition, restriction, covenant, easement, or reservation contained in this Declaration is violated in whole or in part, is hereby declared to be and constitutes a nuisance, and every remedy allowed by law or equity against a private nuisance, shall be applicable against every such result, and may be exercised by the Association or any Owner. Such remedy shall be deemed cumulative and not exclusive. Section 14.09 - Attorneys' Fees. In the event action is instituted to enforce any of the provisions contained in this Declaration, the party prevailing in such action shall be entitled to recover from the other party thereto reasonable attorneys' fees and costs of such suit as determined by the court or by arbitration as pan of the judgment. Section 14.10 - Notices. Any notice to be given to Declarant shall be directed to the business office of the Declarant which as of the recordation of this Declaration is as follows: c/o The Clifford Companies2796 Loker Avenue West, Suite 101B Carlsbad, CA 92008 Attention: Alan Davison Any notice to be given to any other Owner, the Association, or a First Mortgagee under the provisions of this Declaration shall be directed to such addressee at the address furnished by such addressee for thepurpose of notice. Notices sent by first class mail shall be deemed delivered when placed in the first class United States mail, postage prepaid. Notice shall also be deemed to have been properly delivered whenpersonally delivered or delivered to a common carrier for personal delivery to the addressee, or delivered to a person giving such notice by electronic means. If no address was furnished by an Owner or the Association for the purpose of notice, the notice to an Owner may be delivered to the principal office of the Association and the street address of such Owner's Separate Interest, and notice to the Association may be delivered to the address of its principal place of business. 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 delivery on all such co-Owners. The affidavit of an officer or authorized agent of the Association declaring under penalty of perjury that anotice has been mailed to any Owner or Owners, to any Mortgagee or Mortgagees, or to all Owners or all Mortgagees, to the address or addresses shown on the records of the Association, shall be deemed conclusive proof of such mailing, whether or not such notices are actually received. Section J4.ll - Conflicts Between Documents. (a) The terms and provisions set forth in this Declaration are not exclusive as Owners shall also be subject to the terms and provisions of the other Association Management Documents. In the event of a conflict between any provisions of any of the Association Management Documents with the provisions of another Association Management Document, the order of superiority of such documents shall be (1) Articles, (2) Declaration, (3) Bylaws, (4) Architectural Standards, and (5) Association Rules and the provisions of any such document shall be superseded by the provisions of the document shown above to be superior to such document to the extent of such conflict. (b) In the event of any conflict between the provisions of the management documents of the Master Association and the Association Management Documents, to the extent permitted by applicable law the provisions of the management documents of the Master Association shall be deemed to prevail to the extent of the conflict. (c) In the event of any conflict between the provision of the Association Management Documents with the provisions of the management documents of a Subordinate Association, to the extent r permitted by applicable law the provisions of the Association Management Documents shall be deemed to prevail to the extent of the conflict. Section 14,12 - Effect of Declaration. This Declaration is made for the purposes set forth in the Recitals to this Declaration and Declarant makes no warranties or representations, express or implied as to thebinding effect or enforceability of all or any portion of this Declaration, or as to the compliance of any of these provisions with public laws, ordinances and regulations applicable thereto. Section 14,13 - Personal Covenant. To the extent the acceptance or conveyance of a Combined Property Interest creates a personal covenant between the Owner of such Combined Property Interest and Declarantor other Owners, such personal covenant shall terminate and be of no further force or effect from or after the date when a person or entity ceases to be an Owner except to the extent this Declaration may provide otherwise with respect to the payment of money to die Association. Section 1414 - Nonliability of Officials. To the fullest extent pennitted by law, neither the Declarant, the Board, the Architectural Committee, and other committees of the Association or any officer, shareholder, or employee of Declarant or member of such Board or committee shall be liable to any Owner or the Association for any damage, loss or prejudice suffered or claimed on account of any decision, approval ordisapproval of plans or specifications (whether or not defective), course of action, act, omission, error, negligence or the like made in good faith within which the Declarant, such Board, committees or personsreasonably believed to be the scope of their duties. Section 14.15 - Construction By Declarant. Nothing in this Declaration shall limit the right of Declarant to alter any Separate Interest still owned by Declarant or the Nonexclusive Use Common Area, or toconstruct such additional Improvements as Declarant deems advisable prior to completion of Improvements upon and sale of the entire Covered Property. Such right shall include but shall not be limited to erecting, constructing and maintaining on the Covered Property such structures and displays as may be reasonably necessary for the conduct of the business of completing the work and disposing of the same by sale, leaseor otherwise. Declarant shall repair any damage to and complete any restoration of the Covered Property caused or necessitated by such activities of Declarant within a reasonable time after the occurrence of suchdamage or need for restoration. This Declaration shall not limit the right of Declarant at any time prior to acquisition of title by a purchase from Declarant to establish on the Covered Property additional licenses, reservations and rights-of-way to itself, to utility companies, or to others as may from time to time be reasonably necessary to the proper development and disposal of the Covered Property. Declarant reserves the right to alter its construction plans and designs as it deems appropriate. Declarant shall exercise its rights contained in this provision in such a way as not to unreasonably interfere with the Owners' rights to use and enjoy the Covered Property. Section 14.16 - Special Rights. As long as the easement described in the subsection entitled "Construction and Sales" of this Declarant remains in effect, the Declarant shall not be subject to any provisions of the Association Management Documents pertaining to architectural control and use restrictions. In addition,the prior written approval of Declarant shall be required to (i) amend any of the Association Management Documents, (ii) levy a Capital Improvement Assessment for the construction of additional Common Facilities or Association Common Area Improvements not contemplated for the Covered Property by the Declarant, (iii) levy a Special Assessment for any other act or undertaking of the Association, and (iv) decrease the standard or maintenance or services being provided for the Common Facilities and Association Common Area Improvements. Section 14. 17 - Inapplicability to Government Property. The provisions of this Declaration shall not be applicable to any portion of the Covered Property owned by a Public Agency and held for a publicpurpose, but shall apply to any Combined Property Interest owned by a Public Agency. '.I i- ARTICLE XV AMENDMENT PROVISIONS Section 15.01 - Vote of Association. Subject to the other provisions of this Declaration, including, without limitation, the rights of Declarant and the City, until such time as there is a Class A membership pursuant to this Declaration, cancellations, amendments or modifications of this Declaration shall be effective when executed by Declarant. Thereafter, any amendments shall require the vote or written assent of a majority of the total voting power of the Members and the majority of the voting power of theDeclarant as such voting power is determined pursuant to the Section entitled "Voting Rights" of the Article entitled "The Association" of this Declaration. Section 15.02 - Approval by Declarant and City. Any amendment to this Declaration must also comply with the provisions of the Section entitled "Special Rights" of the Article entitled "General Provisions" and the Article entitled "Rights of City" of this Declaration. Section 15.03 - Percentage of Voting Power Required. Notwithstanding the foregoing, any provision of the Association Management Documents which expressly requires the approval of a specified percentage of the voting power of the Association for action to be taken under said provision can be amended only with the affirmative vote or written assent of not less than the same percentage of the voting power of the Association. ARTICLE XVI RIGHTS OF CITY Section I6.0L\Pqrformance. Each Owner, by acceptance of the deed or other conveyance therefor,whether or not it shall be so expressed in any such deed or other instrument, and the Associationacknowledge that the City has been made a third party beneficiary of all of the covenants, conditions and restrictions contained in this Declaration and has the right and power, but not the obligation, to enforce allof such covenants, conditions and restrictions by any proceeding at law or in equity. In the event that any portion of the Common Area Improvements and facilities are not being preserved and maintained asrequired by Sections 7.01, 7.02 and 7.03 of this Declaration, in a safe condition and in a state of good repair and aesthetically pleasing appearance, the City may, after giving notice as described below, cause (i) the necessary work of maintenance or repair to be accomplished and (ii) the cost thereof to be assessedagainst each Owner that is subject to this Declaration. Section 16.02 - Notice. Any notice delivered pursuant to this Article shall be delivered in the manner set forth in the Section entitled "Notices" to all Owners whose names and addresses appear on the then current roll of Members of the Association kept by the Secretary of the Association or whose names appear as Owners of record in the Official Records. The City shall also cause one (1) copy of such notice to be delivered to the Association in the manner provided for delivery of notices in the Section hereof entitled "Notices." Said notice shall specify the action required to be done and shall state that if such work is not commenced within ten (10) days after receipt of such notice and diligently and without interruption prosecuted to completion, the City may cause such action or work to be done in which case the cost andexpense of such action or work, including incidental costs, filing fees, title company charges, miscellaneous foreclosure charges, and reasonable attorney's fees incurred by the City will be added to the cost of such work. Section 16.03 - Payment of Costs. Following the completion of any work by the City, the City shalldetermine the total cost of such work or payment, including incidental costs, filing fees, title company charges, foreclosure costs and reasonable attorney's fees fixed by the City and shall deliver to the $i'1\iKit-;-!*! Association a written statement setting forth such costs and the total thereof. Within fifteen (15) days ' Mowing receipt by the Board of such written statement, the Board shall levy a Special Assessment against all Owners for the reimbursement of such costs. In the event the Association shall fail to levy such Special Assessment in the aforementioned period of time, the City may cause such Special Assessment to be levied and thereafter take such action as is permitted under this Declaration to compel payment, establish a lien on each Owner's Combined Property Interest and prosecute foreclosure thereof for failure to pay such Special Assessment. In the event theAssociation shall levy such Special Assessment, but thereafter fail to remit to the City the funds necessary to satisfy such costs within thirty (30) days following the Association's levy, the City may cause a lien tobe created against each Owner's Combined Property Interest and thereafter prosecute foreclosure of suchlien to satisfy such Special Assessment. It is intended that the City shall be deemed an interest holder under this Declaration and thereby act as the Association or any Owner with respect to establishing aSpecial Assessment, and lien attendant thereto, and pursuing the remedies permitted in connection therewith. The costs incurred by the City in exercising any of its rights under this Article may be added to the cost of the work described above, and then charged to each Owner of a Combined Property Interest in accordance with the allocation described in the Section entitled "Assessment Allocation" of this Declaration. Section 16.04 - Amendment. Deannexation and Termination. Notwithstanding any other provision of the Association Management Documents, the prior written consent of the appropriate public official of the City shall be required for (i) creation of Condominium Projects within the Covered Property, (ii) anytermination or amendment to this Declaration, and (iii) the deannexation of any property from the coverage of die Declaration except deannexation of any property caused by the action described in Section 12.03 of this Declaration. Section 16.05 -Refusal of the City. The failure or refusal of the City to exercise any of the rights or powers conferred by this Article will not result in any liability to the City. Section 16.06 - Conflict. In the event of any inconsistency or conflict between the terms of this Article and the other terms of this Declaration, the terms and provisions of this Article shall control. IN WITNESS WHEREOF, Declarant has executed this instrument the day and year first hereinabove written. B.W. Pacific Partners, a California limited partnership By; Prescort Management Corp., a Delaware corporation, general partner STATE OF CALIFORNIA COUNTY OF ss. On <£brt? £<fTe-before me, _5f£EfojceQpQgS, . a notary public in and toi said State, personally appeared rfhg/STP/ttCKL 3. FfrfeuPfpersonally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose namefe) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacities), and that by his/her/their signatures) on the instrument theperson(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Signature OFFICIAL 3CAI STEFAKE JONES ItAMY PUttCKJALIFOKNlA ORANGE COUNTY EXP. FEB. 4,1994 (Seal) EXHIBIT A PARKING SPACE FORMULA USE NO. OF PARKING SPACES Manufacturing: 1 Parking Space per 400 square feet of gross floor area Warehouse: I Parking Space per 1,000 square feet of gross floor area Office: 1 Parking Space per 250 square feet of gross floor area LOT 5 ins LOOK Aft. WISTtrtiLOOK AVI. WIST TOOL pAiuaite S3 SPACtSTOTAL PARKINS 40 SPACtS EXHIBIT "B-f EXHIBIT "B-S *77IAVI. WtST TOTAL PUOOSC41 SPACtSEXHIBIT mB~tr TOTALit SPACSS EXHIBIT "B-3T TOTALPAWNS LOKIR ATI.nsr TOTAL PAKXINC35 SPACISWIST EXHIBIT "a-? LOT 8 X7IZ LOOM ATM. WfSTLoan An.WISTTOTAL FA1UUNC79 SPACSS EXHIBIT "B-1 iiuniniiiniinniniinmiiiiiiiiinniiiiiiiii PARKING ALLOCATION EXHIBIT "B Jl II111111 It 1 I Is\ 10 2774 LOKER AYE. WEST TOTAL PARKING70 SPACES LOT 9 \ PARKING ALLOCATION EXHIBIT "B-l' CANYON PACIFIC CITY OF CARLSBAD TRACT 92-06 LOT 1 WAV. MMTl « t*. 4*1tUf OfMM •••••i FAX ttimt W-99H LEGEND I .ALLOCATEDPARKING p)Mjji|»s55j!<ji!5^^^ ooaia NVS 'sNVAa T 'ajuiSiw'^fiSHRSSiii&. ;n t .?? V:i;-*'?;; 2772 LOKER AVEWEST TOTALPARKING 32 SPACES LOT 9 LOKER AVENUE WEST PARKING ALLOCATION EXHIBIT "B-2" CANYON PACIFIC CITY OF CARLSBAD TRACT 92-06 LEGEND 2770 LOKER AVE. WEST TOTAL PARKING 31 SPACES LOKER AVENUE PARKING ALLOCATION EXHIBIT "B-3 CANYON PACIFIC CITY OF CARLSBAD TRACT 92-06 LOT 3 \777:. LOT 4 2768 LOKER AVE. WEST TOTAL PARKING 40 SPACES \jmmmsm AVENUE WEST PARKING ALLOCATION EXHIBIT "B-4 CANYON PACIFIC CITY OF CARLSBADTRACT 92-06 LEGEND x*1. fc fc I . TOTAL PARKING 53 SPACES B- PARKING ALLOCATION EXHIBIT "B-5 CANYON PACIFIC CITY OF CARLSBAD TRACT 92-06 LOT 5 LEGEND «tTAr>ATPn 2778 1LOKER AVE. WEST] TOTAL PARKING 42 SPACES n n11in PARKING ALLOCATION EXHIBIT "B-6 CANYON PACIFIC CITY OF CARLSBAD TRACT 92-06 2780 LOKBR AYE. WEST TOTAL PARKING 36 SPACES f. LOT 9 am 5 c r> m PARKING ALLOCATION EXHIBIT "B-7" CANYON PACIFIC CITY OF CARLSBADTRACT 02-06 LEGEND I 2782 LOKER AVE. WEST TOTAL PARKING 42 SPACES o 88- PARKING ALLOCATION EXHIBIT "B-8" CANYON PACIFIC CITY OF CARLSBAD ¥W,MmTRACT 92-06 LEGENP LOT 8 SUBORDINATION < The undersigned, beneficiary under that certain deed of trust encumbering all or a portion ofthe real property described within as the Covered Property, which deed of trust was recorded on December 24, 1986, as File No. 86-607919 of the Official Records, as modified and supplemented, consents to the within Declaration of Covenants, Conditions and Restrictions and hereby subordinates thelien of said deed of trust to (i) all provisions of this Declaration, and any amendment thereto that may be required for the purpose of complying with any law, regulation or any requirement of any of the PublicAgencies, except the provisions or Section 8.02 entitled "Oil and Mineral Rights" and Section 8.03 entitled "Easements for Construction and Marketing Activities" of Article VIII thereof, and to (ii) anySupplemental Declaration, and any amendment thereto, that may be required for the purpose of complying with any law, regulation or any requirement of any of the Public Agencies. FIRST BANK NATIONAL ASSOCIATION, formerly knownas FIRST NATIONAL BANK OF MINNEAPOLIS, a NationalBanking Association r.v* By:.Its:_ ss. STATE OF MINNESOTA COUNTY OF HENNIPEN On Oc. I nbejpublic in and for said State, personally appeared.iff3 before me, '^"Ji& n m a notary UA :zf. t/i'c personally known to me (or proved to' me'on the basis "of satisfactory evidence) to be the person(s) whosename(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed thesame in his/her/their authorized capacity(ies), and that by his/her/their signature^) on the instrument the (Seal) person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature 0^-a 9?1 SUBORDINATION BY LESSEE The undersigned, lessee under the certain lease encumbering and/or covering all or a portion of thereal property described within as the Covered Property, hereby consents to the within Declaration of Covenants, Conditions and Restrictions and hereby subordinates the said lease to the provisions of theDeclaration and any Supplemental Declaration thereto, and any amendment thereto that may be required for the purpose of complying with any law or regulation, provided that such Supplemental Declaration andamendment do not materially and adversely affect lessee's use and enjoyment or lessee's premises or the Common Area. In addition, lessee consents to be bound by the provisions of the Declaration ofCovenants, Conditions and Restrictions and any such Supplemental Declaration or amendment. GP BATTERIES (USA), INC. STATE OF CALIFORNIA COUNTY OF<So>L$>l OnSe. public in and for said'State, ss. before me,ly appeared , a notary cm&lA. vr. j^nkJcitu , personally known to me (or proved to me on the basis of satisfactory evidence) to/be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures) on the instrument the ' person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Signature WITNESS my hand and official seal. y> a. R r"fc*(Seal)> -CemmlMton m*23 JlLCyiiBiluloii Rrpl,M Miy »7. SUBORDINATION BY LESSEE The undersigned, lessee under the certain lease encumbering and/or covering all or a portion of the teal property described within as the Covered Property, hereby consents to the within Declaiation ofCovenants, Conditions and Restrictions and hereby subordinates the said lease to the provisions of the Declaration and any Supplemental Declaration thereto, and any amendment thereto that may be required „for the purpose of complying with any law or regulation, provided that such Supplemental Declaration andamendment do not materially and adversely affect lessee's use and enjoyment or lessee's premises or the Common Area. In addition, lessee consents to be bound by the provisions of the Declaration ofCovenants, Conditions and Restrictions and any such Supplemental Declaration or amendment. GP BATTERIES (USA), INC, Its: PRESIDENT By:. Its: STATE OF CALIFORNIA COUNTY public in and for State, personally appeared , a notary personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed thesame in his/her/their authorized capacity{ies), and that by his/her/their signature^) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument WITNESS my hand and official seal. Signature V^LtuLjl "v.. VO PK (Seal) SUBORDINATION BY LESSEE The undersigned, lessee under the certain lease encumbering and/or covering all or a portion of the real property described within as the Covered Property, hereby consents to the within Declaration ofCovenants, Conditions and Restrictions and hereby subordinates the said lease to the provisions of the Declaration and any Supplemental Declaration thereto, and any amendment thereto that may be requiredfor the purpose of complying with any law or regulation, provided that such Supplemental Declaration and amendment do not materially and adversely affect lessee's use and enjoyment or lessee's premises or the Common Area. In addition, lessee consents to be bound by the provisions of the Declaration of Covenants, Conditions and Restrictions and any such Supplemental Declaration or amendment. tf GP BATTERIES (USA), INC. By:_Its: STATE OF CALIFORNIA COUNTY OF before me,£t _, a notary public in and for saidlState, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be'the person(s) whosenamc(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature Mtrtysj. Bobo ICemml»«ion«»M23< *«grP!jg»<>'Cillfoml«SMnDtHoCoumr * (Seal) SUBORDINATION BY LESSEE . The undersigned, lessee under the certain lease encumbering and/or covering all or a portion of thereal property described within as the Coveted Property, hereby consents to the within Declaration ofCovenants, Conditions'and Restrictions and hereby subordinates the said tease to the provisions of theDeclaration and any Supplemental Declaration thereto, and any amendment thereto that may be requiredfor the purpose of complying with any law or regulation, provided that such Supplemental Declaration andamendment do not materially and adversely affect lessee's use and enjoyment of lessee's premises or theCommon Area. In addition, lessee consents to be bound by the provisions of the Declaration ofCovenants, Conditions and Restrictions and any such Supplemental Declaration or amendment. GP BATTERIES (USA), INC. By:.Its: before me, t STATE OF CALIFORNIA COUNTY public in and for said Si 3> Q A o11 /I C. "EJ u-ckU. J ,personally known to me (or proved to* me'on the basis of satisfactory evidence) to be the person(s) whosename(s) is/are subscribed to the within instrument and acknowledged to me mat he/she/they executed thesame in his/her/their authorized capatity(ies), and that by his/her/their signatures) on the instrument thepcrson(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ao , a notary WITNESS my hand and Signature YW Ji^VA.T id seal. MartysJ.Bobo ICommi*«lon m»23 < hblte • CtUfonitltt- -^S^- 4 Mf Commiulai 6»pif«i Mtr 17. tH7 4 (Seal) SUBORDINATION BY LESSEE The undersigned, lessee under the certain lease encumbering and/or covering all or a portion of the real property described within as the Covered Property, hereby consents to the within Declaration of Covenants, Conditions and Restrictions and hereby subordinates the said lease to the provisions of theDeclaration and any Supplemental Declaration thereto, and any amendment thereto that may be required for the purpose of complying with any law or regulation, provided that such Supplemental Declaration and amendment do not materially and adversely affect lessee's use and enjoyment of lessee's premises or the Common Area. In addition, lessee consents to be bound by the provisions of the Declaration of Covenants, Conditions and Restrictions and any such Supplemental Declaration or amendment Pal-Tile Corporation Bv: Its: Harold C. Turk. Executive V.P.. Sales & Harketir By:_Its: ss. STATE OFflWMSSMfflK TEXAS ) COIJNTY OF DALLAS A fl /y ff Sxix) /fflf&mifa 7y/f£?X before me. .p^^f ///tZu*. . a notary public in and for said Sate, personally appeared ~ ^f^A^&i? ft. ^Jfotip personally known to me (or proved to me on the basis of satisfactory evidence) to be the pcrson(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures) on the instrument the pcrson(s), or the entity upon behalf of which the person(s) acted, executed the instrument. S my hand and official seal. Signature JESS? PUB® SUBORDINATION BY LESSEE The undersigned, lessee under the certain lease encumbering and/or covering all or a portion of the real property described within as the Covered Property, hereby consents to the within Declaration of Covenants, Conditions and Restrictions and hereby subordinates the said lease to the provisions of the Declaration and any Supplemental Declaration thereto, and any amendment thereto that may be required for the purpose of complying with any law or regulation, provided that such Supplemental Declaration and amendment do not materially and adversely affect lessee's us^and enjoyment of lessee's premises or the Common Area. In addition, lessee consents to be bound by the provisions of the Declaration of Covenants, Conditions and Restrictions and any such Supplemental Declaration or amendment. Vencor International, Inc.2768 Loker Avenue, Ste 100, Carlsbad, CA By: Its: STATE OF CALIFORNIA COUNTY OF •*"• ° ss. On AloviMac* 9, 1193 before me, public in and for said State, personally appeared , a notary , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 4ESS my hand^Tofficial seal. Signature^'(Seal) .-WON. SIM. SHERYL SHARPwwnr muc • SUBORDINATION BY LESSEE The undersigned, lessee under the certain lease encumbering and/or covering all or a portion of the real property described within as the Covered Property, hereby consents to the within Declaration of Covenants, Conditions and Restrictions and hereby subordinates the said lease to the provisions of the Declaration and any Supplemental Declaration thereto, and any amendment thereto that may be required for the purpose of complying with any law or regulation, provided that such Supplemental Declaration and amendment do not materially and adversely affect lessee's use and enjoyment of lessee's premises or the Common Area. In addition, lessee consents to be bound by the provisions of the Declaration of Covenants, Conditions and Restrictions and any such Supplemental Declaration or amendment. Westbridge Research Group 2776 Loker Avenue, Carlsbad, CA STATE OF CALIFORNIA COUNTY OF By:. Its: ss. On ,wnLj3+.J33£^. before me, ..ffM..:,SOK.fi^ a notary public in and for said State, personally appeared. wftKJg£fiJ Guu.iee, , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me thai he/she/they executed the same in his/her/their authorized capacity(ics), and that by his/her/their signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature:(Seal) OFFICIAL SEALLAURA A. KLEENM NOIARV PUBLIC-CALIFORNIA SAN DIEGO COUNTY JCMH, EXP..OEC..5. 1994 SUBORDINATION BY SUBLESSEE The undersigned, sublessee under the certain sublease encumbering and/or covering all or a portionof the real property described within as the Covered Property, hereby consents to the within Declaration of Covenants, Conditions and Restrictions and hereby subordinates the said sublease to the provisions of the Declaration and any Supplemental Declaration thereto, and any amendment thereto that may be required for the purpose of complying with any law or regulation, providep^that such Supplemental Declaration andamendment do not materially and adversely affect sublessee's usejarfd enjoyment of sublessee's premises or the Common Area. In addition, sublessee consents to be bound by the provisions of the Declaration of Covenants, Conditions and Restrictions and any such Supplemental Declaration or amendment. Vencor International, Inc. and Bio-Barrier, Inc.2768 Loker Avenue. Suite 101. Carlsbad. CA STATE OF CALIFORNIA COUNTY OF 5* ss. Onpublic in and for State, pe y appeared before me, ..S/feay/ ~ a noary personally known to me (or proved to me on the basis of satisfactory evidence) to be'the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed thesame in his/her/their authorized capacity(ies), and that by his/her/their signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. official seal. Signatun u (Seal) OfflCMlSEAl SHERYL SHARP OkUKMMA CONSENT AND SUBORDINATION The undersigned ("Jordan Associates") as the owner of the following described real property (the "Jordan Associates Property") in the City of Carlsbad, County of San Diego, State of California: Lots 1, 2, 4 and 5 of Carlsbad Tract No. 92-06, in the City of Carlsbad, County of San Diego, State of California, as per the map thereof No. 13050, filed in the Office of the County Recorder of San Diego County on August 26, 1993; and. a four-eights (4/8ths) undivided interest in common in Lot 9 of said Carlsbad Tract No. 92-06. PARCEL 1: PARCEL 2: hereby consents and agrees that its interest in and to the Jordan Associates Property shall be subordinate to the foregoing Declaration or Covenants, Conditions and Restrictions (the "Declaration") so (hat from and after the date hereof, the Jordan Associates Property shall be held and conveyed subject to all of the covenants, conditions, restrictions, rights, easements, liens and charges set forth in the Declaration and the Declarant's rights set forth in the Declaration shall extend to the Jordan Associates Property to the same extent as though the Jordan Associates Property had been conveyed subject to the Declaration. JORDAN ASSOCIATES CARLSBAD, a California genera) partnership Namev. Its: General Partner STATE OF ss. before me, , a notary puWic in and for said State, personally appeared , personally known to me (or proved to me on thefijbrs of satisMtor/jevidence) to be the person(s) whose namc(s) is/are subscribed to the witrtin instrument andSfcknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Signature WITNESS my hand and official seal. -A J•^J/^O-AJ s=>r»t-<v'V«-v^/' —f ^ (Seal) This is a true certified copy of the record if it bears the seal, imprinted in purple ink GREGORY J. SMITH Assessor/Recorder/Clerk San Diego County California SFP 082008