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HomeMy WebLinkAboutPIP 93-03; Knorr's Beeswax; Planned Industrial Permit (PIP) (10)RECORDING REOUESTED BY F^^Mc/e./lS AND WHEN RECORDED, HAIL TOt CARLSBAD AIRPORT CENTRE 2204 Garnet Avenue, Suit* 102 San Dlego, California 92109 Attention: t4r. D«an Greenberg SEP 12 AH II: 06 AR MG DECLARAllOll OF COVENANTS, CONDITIONS, AND RESTRICTIONS CARLSBAO AIRPORT CENTRE ' SAN DIEGO COUNTY, CALIFORNIA r •o I <3 QQ i i Article 1. 2. 4. -901 410 TABLE OF CONTENTS Title DEFINITIONS 2 DESCRIPTION OF PROJECT, DIVISION OF PROPERTY, AND CREATION OF PROPERTY RIGHTS 4 2.1 Description ot Project 4 2.2 Division o£ Subject Property 4 2.3 No Separate Conveyance o£ Interests .. S 2.4 Annexation o£ Additional Parcels 5 2.5 De-Annexation of Parcels 6 ASSOCIATION, ADMINISTRATION, MEMBERSHIP AND VOTING RIGHTS 7 3.1 Association to Manage Comnon Area .... 7 3.2 Membership 7 3.3 Transferred Membership 7 3.4 Classes of Membership 7 3.5 Voting Requirements a 3.6 Commencement of Voting Rights 8 3.7 Membership Meetings 8 3.8 Board of Directors 8 MAINTEMAMCE AMD ASSESSMENTS 9 • 'm': Jt-' V •»> 4.1 Creation of thi Lien and Personal Obligation of Assessments 9 4.2 Purpose of Assessments 9 4.3 Regular Assessiuents 9 4.4 Special Assessments 9 4.5 Capital Improvement Assessments 10 4.6 Rate of Assessment 10 4.7 Date of Commencement of Regular Assessments and Fixing Thereof ....... 10 4.8 Certificate of Payment 10 4.9 Duties of thu Board 10 4. in F.xempt Property VI 4.11 Enforcement of Asseuaweni. ubiitjuLion,- Priorities; Discipline 11 4.12 Payment of Taxes Assessed Against Common Area or Personal property of Association 11 4.13 Proration of Unsegregated Real Property Taxes 11 4.14 Proration of Segregated Real Property Taxes 12 4.15 Transfer of Unit 13 DUTIES AND POWERS OF THE ASSOCIATION 14 5.1 Duties and Powers 14 5.2 Maintenance of Project by Association IS 5.3 Association Easements 15 5.4 Owner's Default. VS UTILITIES 16 6.1 Owner's Rights and Duties 16 6.2 Easements for Litilities and Maintenance 16 C.3 Association's ~'utles 16 ARCHITECTURAL CONTROL 17 7.1 Architectural Approval l"" 7.2 Landscaping Approval I 7.3 Appointment Architectural Conmittee I Page Article Title No. 7.4 So Liability 17 7.5 notice of Noncompliance or Honco^pletion 18 7.6 Rales and Regulations; Guidelines .... 18 7.7 Variances 18 7.8 Appointment and Designation 18 7.9 Review Pee and Address 18 7.10 Inspection 18 7.11 General Provisions 19 7.12 Honapplicability to original Construction 19 8. USC RESTRICTIOMS 20 8.1 Penaltted Uses 20 8.2 .Ho Residential Use 20 8.3 Nuisances 20 8.4 oil Drilling and Mining 20 8.5 Antennas 20 8.6 Animals 20 8.7 Rubbish, Etc 20 8.8 Vehicular Storage and Parking; Storage .......................... 21 8.9 Outdoor Activ.fties '.i' 21 8.10 Condition, of an Owner's Unit ......... 21 8.11 Liability of Owners for Damage 21 8.12 Maximum Sound Levels, Etc 21 8.13 Wastes 22 8.14 Billboards and Signs 22 8.15 Air Pollution Guidelines 22 8.16 other Operations and Uses 22 8.17 Loading Restrictions 22 8.18 Metal Structures 22 8.19 Screenin<j of Equipment 23 8.20 No Warranty of Enforceability 23 9. INSURANCE AMD iSTRUCTION OF IMPROVEMENTS 24 9.1 Insurance 24 9.2 Destruction of Improvements 25 9.3 Condemnation 25 10. MAIHTEtiAMCE BY UMIT OWNERS 27 10.1 Owner's Right an obligation tu Maintain and Repair 27 10.2 Disputes 27 11. GENERAL PROVISIONS 28 11.1 Enforcement 28 11.2 Negligence and/or Willful Misconduct . 28 11.3 Severability 28 11.4 Ter« 28 11.5 Construction 28 I. 1.6 AMndments 28 II. 7 Mortgage Protection Clause 29 11.8 Singular includes Plural 29 11.9 Nuisance 29 1.10 Encroachment easements 29 11.11 Nonllabilitv of Officials 29 11.12 Owner's Easement of Enjoyment 29 11.13 Owner's Compliance 30 ^1.14 Construction By Declarant 30 9 •O . 412 DECLARATION OF COVEMANTS, CONDITIONS AND RESTRICTIONS CARLSBAO AIRPORT CENTRE SAM DIEGO COUNTY. CALIFORNIA THIS DECLARATIOH OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Declaration"), is aade on 50 - c/ , 19 , by CARLSBAO AIRPORT CENTRE, a California limited partnership ("Declarant") with reference to the following facts: A. Declarant is the fee owner of that certain real property located in the County of San Diego, State of California, more particularly described on Exhibit A attached hereto and made a part hereof, together with any additional real property annexed thereto in the future under this Declaration (the "Subject Property"). B. Declarant has developed and improved or is in the process of developing and improving the Subject Property by subdividing and constructing thereon certain improvements which Declarant is marketing as a planned development according to the uses set forth in Article 8 hereof. C%M$ The developaent shall b= generally icnown as "CARLSUAD AIRPORT (nSNTRE* and shall b« hereinafter referred to as the "Project". Each Owner shall receive fee title to his individual Lot and the improvements thereof (collectively the "Unit") as well as a membership in CARLSBAO AIRPORT CbNTRb, Owners Association, a California nonprofi*- mutual benefit corporation, which corporation shall own fee title to and/or be responsible for the Common Area (as such term is hereinafter defined). D. Declarant intends by this document to inpose upon the Subject Property autually beneficial restrictions under a general plan of ioprovement for the benefit of all of the Units and the Owners thereof. Declarant hereby declares that the Subject Property and all improvements erected thereon shall be held, convey<sd, mortgaged, encumbered, leased, subleased, used, occupied, sold, assigned and improved, subject to the following declarations, limitations, covenants, conditions, restrictions, and easements, all of which are for the purpose of enhancing and protecting the value and attractiveness of the Subject Property and all improvements erected thereon, arv] the Project, and every part thereof, in accordance with the plan fov the improvement of the Subject Property and the division thereof into a planned development. All of the limitations, covenants, conditions, restrictions, and easements shall constitute covenants which shall run with the land and shall be perpetually binding upon Declarant and its successors-in-interest and assigns, and all parties having or acquiring any right, title, or interest in or to any part of the Subject Property, and all improvements erected thereon, or the Project. 2 052186/p-vivi Ul O 1 09 -1- 413 AJETICLE I DEFINITIONS 1.1 "Articles" shall nean and refer to the Articles of Incorporation of the Association as amended from time to time. 1.2 "Assessaent* shall aean and refer to that portion of the cost of maintaining, improving, repairing, operating, and managing the Subject Property and all improvements erected thereon (except for Uiat part of each Owner's building as set forth herein which shall be the Owner's responsibility which assessment is to be paid by each Unit as determined by the Association. 1.3 "Association" shall mean and refer to CARLSBAD AIRPORT CENl'RE. OWNERS ASSOCIATION, a California Nonprofit .Mutual benefit Corporation, the members of which shall be the Owners uf Units in the Project. 1.4 "Board" or "Board of Directors" shall mean and refer to the governing body of the Association. 1.5 "Building Element" shall mean and refer to the building located upon any individually owned Lot in the Project. 1.6 "Bylaws* shall Mean and >.efer to the Bylaws of the Association as amended from time to tim*. 1.7 "Common Area" shall r.iian and refer to all real property tnd the improvements thereon, including, without limitation, any private storm drain or sewer systems, retention basins, p&rkways. entries, natural canyo.'i areas, all fill and cut slopes adjacent to public streets. Special Landscaped Areas (as defined in Article 5.1.1 hereof), internal private roadways and parking areas, mxni-par<s, median strips, greenbelts, private utilities, open space d j open space easements, trails, bike paths and bike lanes, w l.^, signs, monuments and appurtenances owned, leased, or to be maintained, from time to time, by '.he Association for the common use and enjoyment of the Members, ../hich shall be that certain property described on Exhibit & attached hereto and made a part hereof. Any additional property to be designated as ommon Area" shall be conveyed to the Association and/or descn^ied or referenced herein or in a Declaration of Annexation. 1.8 "coimon Expenses* shall mean and refer to the actual and estimated expenses of operating the Common Area and the Association and any reasonable reserve for such purposes as found and detensined by the Board and all sums designated common expenses by or pursuant to the Project Documents. 1.9 "Declarant" shall mean and refer to CARLSBAD AIRPORT CENTRE, a California limited partnership, and its successors-in- interest and assigns, but shall not include members of the public purchasing completed Units. 1.10 "Declaration" shall mean and refer to this enabling Declaration. 1.11 "Institutional Lender" shall mean and refer to any bank, savings and loan association, insurance company, or ochur financial institution holding a recorded first mortgage on any Unit. 1.12 "Lilt" shall mean and refer to any particular parcel •of land resulting £rora division of the Project according to law. However, "Lot" shall not include real property owned by the Association. "Lot" shall also mear any condominium. 1.13 -ll' shall 'noan and ie£er to Carlsbad Tract No. •S:- 46, Unit <o. I (or a portion thereof), being a subdivision cf a portion of tot "G" of Rancho Aqua lledonia, in the County of Sac Diego, State of California, according to map thereof No. 823, filed in '.he Office of the County Recorder of San -2- 55 •o oa 414 Diego County, November 16, 1896; and subsequently recorded map, filed in the County of San Diego, Office of the County Recorder as Hap No. 11287, 11288 and 11289 on July 16, 1985. and all amendments thereto, which cover the Subject property or a portion thereof. 1.14 "Member" shall mean and refer to a person entitled to membership in the Association as provided herein. 1.15 "Mortgage" well as a mortgage. shall mean and refer to a deed of trust as 1.16 "Mortgagee" shall mean and refer to the l>eneficiary or a holder of a deed of trust as well as a mortgagee. 1.17 "Mortgagor" shall mean and vefer to the trustor of a deed of trust as well as a mortgagor. 1.18 "Owner" or "Owners" shall mean and refer to the record holder or holders of title of a Unit in the Project. This shall exclude persons or entities having any interest merely as security for the performance of any obligation. 1.19 "Person" shall mean and refer to a natural person, a corporation, a partnership, a triistee, or other legal entity. 1.20 "Phase" shall mean aid refer to a particular parcel of property which is or shall become part of the Project pursuant to the recordation of an appropriate Declaration of Annexation. The property described in Exhibit A to this Declaration shall be deemed to be the first Phase of the Project and any parcel annexed to the property described in Exhibit A under a Declaration of Annexation shall be deemed to be a subsequent Phase of the Proiect. Each of the divisions of land as shown on Exhibit C attacned hereto and niade a part hereof shall be subsequent Phases upon annexation. 1.21 "Project" shall mean and refer to the entire Subject Property including all structures and improvements erected or to be erected thereon. 1.2 2 "Project Documents" shall mean and refer to this Declaration as it may be amended from time to time, the exhibits, if any, attached hereto, the Map, the Articles and Bylaws of the Association, and the rules and regulations for the Members as established from time to time. 1.23 "Specific Plan" shall me<in, with regard to any Phase within the Project, that certain "Specific Plan" of development approved by the City of Carlsbad. A copy of any approved Specific Plan is on file with the City of Cariabad. 1.24 "Subject Property" shall mean and refer to the real property covered by this Declaration (including property annexed pursuant to this Declaration), and all improvements erected thereon and all property, real, personal, or mixed, intended tor or used in connection with the Project. 1.25 "Tract" shall mean and refer to a portion of the Subject Property or of a Phase for which a major sjbdivlsion map is recorded. 1.26 "Unit" shall mean and refer collectively to the elements of an individual Lot and the building in the planned development, as defined in Article 2. 1.27 'Un4.t Uesignation" neara the number, letter, or combination thereof or other otfific.; desig.iaf.iuti fhown on .'e Map. END OF ART ICI.t 1 EN TlTLtD •o 415 ARTICLE 2 n DESCRIPTION OF PROJECT. DIVISION OF PROPERTY AND CREATION OF PROPERTY RIGHTS 2.1 Description of Proiect The Project consists of the underlying Subject Property with the Units and all other improvements located or to be located thereon, and includes all Phases annexed pursuant to this Declaration. 2.2 Division off Subject Property The Subject Property is hereby defined as follows: 2.2.1 Units Each of the Units consists of an individually owned Lot and al.l improvements including the Building Element located thereon. Title to the Unit shall be held by thc Owner thereof subject to the specific covenants, conditions and restrictions set forth in this Declaration. Each Unit is subject to such encroachments as may now exist or way be later caused or created in any manner. In interpreting deeds and plans, the then existing physical boundaries of a Unit, whether in its original state or reconstructed in substantial accordance With th« original plans thereof, shall be conclusively presumed to be its boundaries rather than tii« boundaries expressed In tha deed or plan, regardless of settling or lateral nuveawnt of th* building and regardless of minor variance(s) between the boundaries shown on the plan or deed, and those of the Building Iement. 2.2.2 Common Area Lots and Comn>on Area That portion of the Subject Property described on attached Exhibit B shall be be "Common Area Lots", title to which shall be held by the Association. The Common Area (which includes, without limitation, the Common Area Lots and the improvements i r.ereon) shall be operated and maintained by the Association :..c the use and benefit of Owners of Units in the Project, subject to reasonable rules and regulations enacted according to the Bylaws. Unless otherwise restricted, each Unit Owner may use the Common Area in accordance with the purposes for which it is intended without hindering the exercise of or encroaching upon the rights of any other Unit Owners. Declarant shall reserve and hereby reserves in itself and its successors and assigns, as well as in the Association and in all other Owners, easements over and onto the Coiwnon Area and over and onto the individual Lots up to the exterior perimeter walls of each Building element for drainage and encroachment purposes and for ingress to and egress from the Comiuon Area and such portions of the individual Lots for the purpose of completing improvements thereon or for the performance of necessary maintenance, landscaping, and repair work, and for entry onto adjacent property in connection with the development of additional Phases of the Project. Declarant shall also reserve and hereby reserves in itself and its successors and assigns, for a five year period frosi the date of the initial recordation of this Declaration in the Official Records of the San Oiego County, California Recorder, a right to reasonably alter or modify the size and boundaries of the Phase I Conunon .Area Lots or other Common Area consistent with the proper development of future Phases of the property described on attached Exhibits A, B, and C . 2.3 No Separate Conveyance ot Interests The foregoing interests and exclusive easements are hereby establisned and ars to be conveyed only with the respective Units, and cannot be changed, except as herein aut forth. Declarant, its successors-in-interest, assigns and grantees, coverant and agree that the easements in the ComnJU -4- oa ^,7 416 Area, the Lots, and the Units shall not be separated or separately assigned or conveyed, and each such interest and exclusive easeaent shall be deemed to be conveyed or encumbered with its respective Unit even though the description in the instrument of conveyance or encumbrance may refer cnly to the title of the Unit. 2.4 Annexation of Additional Parcels Additional parcels may be annexed to the Subject Property and become subject to this Declaration by either of the following methods: 2.4.1 Annexation Pursuant to Plan The property described in EXHIBIT C, or any portion thereof, may be annexed to and become a part of the Project, subject to this Declaration, and subject to the jurisdiction of the Association, without the assent of the Association or its Members, on condition that: 2.4.1.1 Any annexation pursuant to this Subarticle shall be niade prior to twenty-five (25) years from date of the initial recordation of this Declaration in the Official Records of the San Diego County, California Recorder. 2.4.1.2 A Dr.claration of Annexation shall be recorded by Declarant covering the applicable portion of the property to be annexed. Said Declaration shall incorporate this Declaration by reference and may cot.tain such complementary additions and isodifications of the covenants and restrictions contained in this Declaratioti as may be necessary to reflect the different character, if any, of the added property, and as are not consistent with the scheme of this Declaration. 2.4.2 Annexation Pursuant to Approval Upon the vote or written assent of Declarant (while Declarant is an Owner) and of two-thirds (2/3) of the total votes residing in Members of the Association other than Declarant, the Owner of any property who desires to add it to the scheme of this Declaration and to subject it to the jurisdiction of the Association, may record a Declaration of Annexation in the manner described in tha preceding Subarticle. Upon annexation of a new Phase, the annexed parcel shall become subject to this Declaration without the necessity of amending individual sections hereof. The Owners of the Units in a preexisting Phase will continue to have the same rights with respect to the use of the Common Area located within their Phase, and will have a non-exclusive easement for access, ingress, and egress for pedestrian, cycle, and passenger and delivery vehicle traffic, as well as for vehicular parking and otherwise over and for reasonable use of the Common Area located within the new Phase in accordance with the purposes for which it is intended without hindering the exercise of or encroaching upon he rights of any other Owners. Owners of Units in the new- Phase will have a non-exclusive easement for access, ingress, and egress for pedestrian, cycle, and passenger and delivery vehicle traffic, as well as for vetiicular parking and otherwise over and for reasonable use of any Conunon Area located within the new Phase or within any preexisting Phase in accordance witli the purposes for which it is intended without hindering the exercise of or encroaching upon t.he rights or any other Owners and will become Members of the Association. Declarant iiereby reserves to itself, its successors and assigns, the right to, and agrees that it will, grant tc the Owners of "Units in any .new or pre-existing Phase, the non-exclusive easements for access, ingress, egress, vehicular parking and otherwise, and reasonable use as described in this paragraph. In addition. Declarant shall reserve and hereby reserves in itself and in its successors and assigns, as over and onto the Common Arud and over and onto the individual Lots up to the exterior perimeter walls of each Building Elemear in any new I'hase fcr iliaiiiaije and encroacbiroi.f pai poses and fcr ingress to and eyress ftom t\\<2 •O Common Area and such portions of the individual Lots for the purpose of conpleting improvements thereon or for the performance of necessary maintenance, landscaping, and repair work, and for entry onto adjacent property in connection with the development of additional Phases of the Project. 2.5 De-annexation of Parcels Any parcel annexed to the Subject Property pursuant to the plan of Declarant, in accordance with Subarticle 2.4.1 above, may be de-annexed by Declarant and removed from the Project and the jurisdiction of this Declaration and the Association at any time by the recordation of an appropriate Declaration of De-annexation; provided that such de-annexation shall take place (1) before any Unit in the annexed parcel has been sold by Declarant to a member of the general public; (2) before any vote has been exercised on behalf of or with respect to any such Unit; and (3) before any such Unit has incurred any assessment obligation to the Association. ENU OF ARTICLE 2 ENTITLED DESCRIITION OF PROJECT, DIVISION OF PROPERTY, AND CREATION OF PROPERTY RIGHTS 2? •O -6- 4^ 09 r 418 ARTICLE 3 ASSOCIATION. ADMINISTRATION. MEMBERSHIP AND VOTING RIGHTS 3.1 Association to Manage Common Area The management of the Cononon Area shall be vested in the Association in accordance with the Bylaws. The Owners of all the Units covenant and agree that the administration of the Project shall be in accordance with the provisions of this Declaration, the Articles, the Bylaws, and the rules and regulations of the Association, subject to the standards set forth in this Declaration and all applicable laws, regulations and ordinances of any governmental or quasi-governmental body or agency having jurisdiction over the Project. 3.2 Membership The Owner of a Unit shall automatically, upon becoming the Owner of same, be a Member of the Association, and shall remain a Member thereof until such time as his ownership ceases for any reason, at which time his membership in the Association shall automatically cease. Membership shall be in accordance with the Articles and the Bylaws uf the Association 3 • 3 Transferred Membership Membership in transferred, pledged, or transfer of ownership of and then only to the new transfer is void. In th fail or refuse to transf to the purchaser of his right to tecord the tran old men.bership outstandi null and vi:id. the Association shall not be alienated in any way, except u[x>n the the Unit to which it is appurtenant. Owner. Any attempt to make such a e event the Owner of any Unit should er the membership registered in his name Unit, the Association shall have the sfer upon its books and thereupon the ng in the name of the seller shall.be 'I 3.4 Classes of Membership The Association shdll have two (2) classes of voting membership established according to tbe folluwing provisions: 3.4.1 Class A Membership Class A Members shall be all Members with the exception of Declarant. Class A Members shall be entitled to vote that fraction of one vote as is equal to the percentage interest attributable to the Unit owned by such Owner as set forth on the Percentage Interest Schedule attached hereto as Exhibit D and by this reference made a part hereof or on an appropriate exhibit to the Declaration of Annexation. (The Percentage Interest Schedule has been determined by Declarant approximating the square footage of each lot in the Subject Property in relation to the square footages of all other lots in the Subject Property. The percentage allocations are and shall be binding on the Declarant and on all Owners. If the actual square footages are more than three percent (3t) (plus or minus) different than the approximated square footages, the Board shall reconpute the Percentage Interest Schedule and the new Schedule shall thereafter be binding on the Declarant and on all Owners. In no event shall the Declarant or an Owner fail to pay its assessments by reason of a disagreement with either the original Schedule or the recomputed Schedule. If a Unit is owned by more than one (1) person, each such person shall be a member of the Association, but they shall collectively have no more than the fraction of one vote so allocated to their Unit. 3.4.2 Class B Membership The Class B Member shall be Declarant. The Class B meinLer shall be entitled to ten (10) times the Exhibit I) fraction of .)ne vote otherwise ellocated to each Unit owned by Declarant, provided that the Class H membership sholl ^ease arc: ^ be converted to Class A membership on the happening of the j •o ^ CO 419 earlier of the following events: 3.4.2.1 When the total votes outstanding in the Class A membership equals the total votes outstanding in the Class B membership. 3.4.2.2 years from the date hereof. The expiration of twenty-five (25) 3.5 Voting Requirements While there are two (2) outstanding classes of membership, any action by the Association which must have the approval of the Association membership before being undertaken shall require the vote or written assent of the prescribed percentage of each class of membership. 3.6 Commencement of Voting Rights Voting rights attributable to any Unit shall not vest until an assessment has been levied against that Unit by the Association, pursuant to Article 4, below. 3.7 Membership Meetings Regular and special me'.lngs oC members of the Association shall be held with the frequency, at the time and place, and in accordance with the provisions of the Bylaws of the Association. 3.8 Board of Directors The affairs of the association shall be managed by a Board of directors, which shall be established, and which shall conduct regular and special meetings according tc ^he provisions of the Bylaws of the Association. ENU OF ARTICLE 3 ENTITLED ASSOCIAT'^ON, ADMINISTRATION, MEMBERSHIP AND VOTING RIGHTS Jar •o CO • 420 ARTICLE 4 HAIHTEHAMCE AND ASSESSMENTS 4.1 Creation of the Lien and Personal Obligation of Assessments Declarant, for each Unit owned within the Project, hereby covenants, and each Owner of any Unit by acceptance of a conveyance therefor, whether or not it shall be so expressed in such conveyance, is deemed to covenant and agree to pay to the Association: (1) regalar monthly assessments or charges; (2) special assessments, and (3) capital improvement assessments for capital improvements and unexpected expenses. All such assessmeiits are to be established and collected as provided herein and in the Bylaws of the Association. Ths monthly, special and capital improvement assessments, together with interest, costs, and actual attorneys' fees, shall ba a charge and a continuing lien upon the Unit against which each assessment is made, the lien to become effective upon recordation of a notice of assessment (notice of default and demand to cure). Each such assessment, together with interest, costs, and actual attorneys' fees, shall also be the personal obligation o£ tha person who was the Owner of such Unit at the time when the assessment fell du«. No Owner may exempt himself from liability for the assessme.its provided for herein hor release his Unit from the .lien} and charges hereof by waiver of the use or enjoyment of any of the Common Area or by abandonment of his Unit. 4.2 Purpose of Assessments The assessments levied by the Association shall be used exclusively to Dror..ote the recreation, health, safety and welfare of all the Owners <n the entire Project for the improvement and maintenance of the Common Area for the common good of the Project. Annual assessments shall include an adequate reserve fund for maintenance, repairs and replacement of the Comnon Area. 4.3 Regular Assessments. The amount of regular assessments shall be determined by the Board pursuant to this Declaration, the Articles and Bylaws after giving due consideration to the current maintenance costs and future needs, including the build up of reserves for working capital and contingencies of the Association. The regular assessments shall be paid on a monthly basis. If the Board determines that the estimate of total charges for the current year is, or will become, inadequate to meet all current expenses for any reason, it shall then determine the approximate amount of such inadequacy and issue a supplemental estimate of the common expenses and determine the revised amount of regular assessments due from each Member, and the date when due. If the amount budgeted to meet common expenses for any period proves to be excessive in light of the actual common e.rpenses, the Board in its discretion may, by resolution, reduce the amount of the regular assessments. 4.4 Special Assessments Spcial assessment? shall be levied by the board against a Unit to reimburse the Association for: 4.4.1 costs incurred in bringing an Owner and his Unit ipto compliance with the provisions of this Declaration, the Articles, the Bylaws, or the rules and regulations; 4. i.2 any other charge designated as a special assessment in this Declaration, the Articles or Bylaws; 4.4.3 attorneys' fees, interest and other charges relating therrto as provided in this Declaration. •O Jw 421 In the event the Association undertakes to provide materials or services which benefit individual Units and which can be accepted or not by Individual Owners, such Owners in accepting such materials or services agree that the costa thereof shall be a special assessment. 4.5 Capital Improvement Assessments In addition to the regular assessments and special assessments, the Association may levy in any calendar year, an assessment applicable to that year only, for the purpose ofi defraying in whole or in part, the cost of construction, reconstruction, repair, or replacement (other than due to destruction) of any capital improvement upon the Common Area or to defray any unanticipated or underestimated expense or other action or undertaking normally covered by a regular assessment. The imposition of a capital improvement assessment in a sum in excess of $100,000. shall require approval by vote or written consent of Members entitled to exercise not less than three- fourths (3/4ths) of the voting power of the membership. 4.6 Rate of Assessment Each Unit, including Units owned by Declarant, shall bear a fractional share of each aggregate regular and special assessment according to the allocations set forth on Exhibit D attached hereto or on an appropriate exhibit to the Declaration of Annexation. (The appropriate exhibit to the Declaration of Annexation shall ba determined by approximating the square footage of each lot in each coverad Phas*f|)|^Th« percentage allocations shall be binding on the Declarant'and on'^all Ownara in all covered phases. If. the actual square footages are more than three percent (3t) (plus .-^r minus) different than the approximated aquare footages, tti? Board shall reconpute the Percentage Interest Schedule and the new Schedule shall thereafter be binding on the Declarant and on all Owners. In no event sliall the Declarant or an Owner fail to pay its assessments by reason of a disagreement with either the original Schedule or the recomputad Schedule. Additionally, special asitf^'auiiiviita uKsy Lv luvlvJ :i*jaiitut i 1 v idit.i I ilti i I -i t*'t disciplinary reasons, as provided in Subarticle 4.4. 4.7 Date of Commencement of Regular Assessments and Fixing Thereof The regular assessments provided for herein shall commence as to all Units in the Project on the first day of the month following the close of escrow for the salo of the first Unit in the Project or at such time before or after such first day of said month as Declarant deems appropriate in Declarant's good faith business liscretion. Due dates of assessments shall be the first of every month. No notice of such assessments shall be required other than an annual notice setting forth the amount of the monthly assessment. 4.8 Certificate of Payment The Association shall, upon demand, furnish to any Owner liable for said assessment, a certificate in writing signed by an officer of the Association, setting forth whether tha assessments for a spaci fled Unit have been paid and the amount of the delinquency, if any. A reasonable charge may be made by the Board for the issuance of these certificates. Such certificate shall be conclusive evidence of payment of any assessment therein stated to have been paid. 4.9 Duties of the Board The Board shall fix the amount of the regular assessment against each Unit for each fiscal year at least thirty i30) days before the commencement of such year and shall, at that tine, prepare a roster of tha Units within the Subject Property and regular assessments applicable thereto w)>ich shall be kept in tlte office of the Association and shall be npen to inspection by any )wner during normal buainess hours. Written t° -10- a notice ofi the regular assessments shall be sent to every Owner subject thereto at least fiifiteen (15) days before the cooBMncement ofi each such year. The Board shall fix the amount of all capital improvement assessments at least thirty (30) days before tha date such assessments shall become due and shall give written notice to each Owner subject thereto at least fifteen (15) days before the date such assessments shall become due. 4.10 Exempt Property All property dedicated to and accepted by a local public authority shall b« exempt from the assessments created herein, unless the maintenance responsibility ofi such dedicated property is not accepted in full by the local authority in which case such dedicated property shall not be exempt from the assessments created herein. 4.11 Enforcement of Assessment Obligation; Priorities: Discipline If any part of any assessment is not paid and received by the Association or its designated agent within fifteen (IS) days after the due date, an autosiatic late charge ofi ten percent (10%) shall be assessed and additional ten percent (10%) sums shall be assessed for each month or fraction thereof from the due data until tha assassmant and all lata charges are paid. When a notice of assessment (notice ofi default and demand to cure), has been recorded, such assessment shall constitute a lien on each respective Unit prior and superior to all other liens except all taxes, bonds, assessments and other levies which, by law, would be superior thereto. Such lien, when delinquent, may be enforced by sale by the Association, its attorney or other person authorized by this Declaration or by law to make ^he sale, after failure of the Owner to pay such asse-.ismeitt, in accordcince with the provisions of Sections 1356 and 2924-2'J24h of the California Civil code, applicable to thc exercise of powers of sale in nortgages and deeds of trust, or in any other manner permitted by law. The Association, act .g on behalf of the Unit Owners, shall have the power to bid fo^' the Unit at the foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. Suit to recover a money judgement for unpaid common expenses, rent and attorneys' fees shall be maintainable without foreclosing or waiving the lien securing tha same. The Board may impose reasonable monetary penalties including actual attorneys' fees and costs and may temporarily suspend the Association membership rights of a Unit Owner who is in default in payment of any assessment, after notice and hearing according tc the Bylaws. 4.12 Payment of Taxes Asseused Against Common Area or Personal Property of Association In the event that any taxes are assessed against the Comnon Area, or the personal property of the Association, rather than against the Units, said taxes shall be included in the assessments made under the provisions of this Article, and, if necessary, a special assessment may be levied against the Units in an anount equal to said taxes, to be paid in two installments, thirty (30) days prior to the due date of each tax installment. 4.13 Proration of Unsegregated Real Property Taxes 4.13.1 If real property taxes are prorated L>y Declarant through escrow in connection with the conveyance of any Unit at a time when the actua. taxes attributable to such Unit are unknown (where such actual taxes will be unknown at the time escrow closes) and if the tax bill is to be an "unsei-jregated" or "blanket" bill covering the Project, Declarant shil.i .-.He a K C.'li^ estimate of the real property taxes applicable tc eaci- Jn;.. and e::c ow ^I.AII make the •^<'.>rtit:.r>. based on this good faith estimate. Upon receipt cC he "unsegregated" tax bill after close of escrow, any adjustments ' -U- •« shall be made outside of escrow by Declarant and the Owner ofi tha Units with the Association's cooperation. The Association shall pay befiore delinquency the entire "Unsegregated" tax bill for the Project. Following the issuance ofi the "unsegregated" tax bill, and jjnediatelv after the Association has determined each Owner's proper tax (as hereinafter provided), each Owner shall pay the entire tax for each Owner's Unit to the Association in order that tha Association may satisfy tha "unsegregated" tax bill before delinquency. Each Owner for himselfi and his successors hereby covenants and agrees that tha right ofi the Association to collect the tax may ba enfiorced by any ofi the procedures described in this Article 4. Tha "unsegregated" tax bill shall ba equally divided anong the Owners. 4.13.2 Unless the Declarant's good faith estimate is exact, the Declarant and tha Owner shall promptly furnish the Association with their closing statements as proof ofi the proration of the "unsegregated" taxes through escrow. Thc Association shall then promptly determine the dififierence between the amount of taxes charged to tha Owner at the close of escrow ("Owners Charge") and the Owner's actual share ofi taxes based on the "unsegregated" tax bill ("Owners Actual Share"). If the Owner's Charge exceeds the Owner's Actual Share, the Association shall pay such excess to the Owner, and the Declarant shall immediately reimburse the Association for all such payments. If the Owner's Actual Share exceeds the Owner's Charge, the Association shall immediately pay the ainount of such . excess to Declarant, and shall thereafter levy a special assessment against the Owner and his Unit for reimbursement of such payment. A«:3rt&- x« , ^ 4.13.3 In the event further "unsegregated" tax bills are issued or "unsegregat-ed" installments become due follcwing the sale of Units, the ,Nssociation shall be responsible for the payment thereof prior to delinquency but shall have all rights set forth i- ;nis Article to collect from each Owner such Owner's proper shace of the "unsegregated" bill or "unsegregated" installment. 4.14 Proration of Segregated Real Property Taxes 4.14.1 If real property taxes are prorated by Declarant through escrow m connection with the conveyance of any (Jnit at a time when the actual taxes attributable to such Unit are unknown (where such actual taxes will be unknown at the time escrow closes) and if the tax bill is to be a "segregated" or "individual" bill covering the Unit, tha Declarant shall make a good faith estimate of the real property taxes applicable to the Unit and escrow shall make the proration based on this good faith estimate. Upon receipt of the segregated" tax bill after close of escrow, any adjustments shall be made outside of escrow by Declarant and the Owner of the Unit with the Association's cooperation as provided in Article 4.13.2. Tha Owner shall pay before delinquency the "segregated* tax bill for the Unit. 4.14.2 Unless the Declarant's good faith estimate ia exact, the Declarant and the Owner shall promptly furnish the Association with their cloaing statements as proof ofi the proration of the "segregated" taxes through escrow. The Association shall then promptly determine the difference between the amount ofi taxes charged to the Owner at the close of escrow ("Owners Charge") and the Owner's actual share of taxes based on the "segregated" tax bill ("Owners Actual Share"). If the Owner's Charge exceeds the Owner's Actual Share, the Association shall pay such excess to the Owner, and the Declarant shall immediately reimburse the Association for all such payments. If the Owner's Actual Share exceeds the Owner's Charge, the Association shall immediately pay the amount of such excess to Declarant, and shall thereafter levy a special assessment against th* Owner and his Unit for reimbursement of such payir.ent. Each Owner for himself and his successors hereby covenants to reimburse the amount of any such excess to the Asscciat.'ort -Hi agrees ihat th* ..iqnt of Xhe Association to -12- :• I • C. 424 • collect such excess may be enforced by any of the procedures described in this Article 4. 4.15 Transfer of Unit Sale or transfer of any Unit shall not affect the assessment lien. However, the sale or transfer of any Unit pursuant to Mortgage foreclosure including the exercise ofi a power of sale or judicial foreclosure or acceptance ofi a deed in lieu of said foreclosures (collectively "Transfer") involving a default under a fiirst Hortgage shall extinguish the lien ofi such assessments as to payments which bbcame due and payable prior to such Transfer (except for assessment liens recorded prior to the Mortgage). No transfer shall relieve such Unit from liability for any assessments thereafter becoming due or from the lien thereof. Where the Mortgagee of a first Mortgage of record obtains title to a Unit as a result of any such Tranafer, such Mortgagee shall not be liable for the unpaid dues or charges ofi the Association chargeable to such Unit which accrued prior to the acquisition ofi title to such Unit by such Mortgagee. Such unpaid dues or charges shall be deemed to be common expenses collectible from all of the Units including such Mortgagee. In a voluntary conveyance of a Unit the grantee of the same shall be jointly and severally liable with the grantor for all unpaid assessments by the Association against the latter for his share of the common expenses up to the time of the grant or conveyance, without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee therefor. However, any such grantee shall be entitled to a statement from the Association, setting forth t;ir amount of the unpaid assessments due the Association and such grantee shall not be liable for. not shall the Unit conveyed by subject to alien for} any unpaid assessment made by the Association against the grantor in excess of the amcunr set forth in the statement; provided, however, the grantee sl-^all be liable for any such assessment becoming due after the date of any such statement. END OF ARTICLE 4 ENTITLED MAINTENANCE AND ASSESSMENTS •o -13-S 425 ARTICLE 5 DUTIES AND POWERS OF THE ASSOCIATION 5.1 Duties and powers In addition to the duties and powers enumerated in its Articles and Bylaws, or elsewhere provided for herein, and without limiting the generality thereof, the Association shall: 5.1.1 Maintain and otherwise manage all of the Conunon Area (including, in addition, that area on the individual Lots located between the Common Area boundary and the exterior perimeter walls of each Building Element) and all facilities, improvements, furnishings, equipment, and landscaping thereon, and all property (real and personal) acquired by the Association. The Association's responsibilities hereunder shall also include the maintenance and management of the mini-parks located on the Subject Property as well as certain special landscaped streets and other landscaped areas (the "Special Landscaped Areas") in and around the Subject Property and adjacent property, as generally described and depicted on Exhibit E attached hereto and by this reference made a part hereof. The Special Landscaped Arccs include certain landscaped streets identifiied in the Sper.ifiic Plan.' If at-any time the Association fails or refuses to maintain or manage the Special Landscaiied Areas as provided lerein, the City of Carlsbad may perform such duties (but is under no obligation to do so) at the sole cost and expense of the Association; 5.1.2 iiave the autltority to obtain, for the benefit of all uf the Conunon Area, all water, gas and electric services and refuse collections, dnu, in addition, refuse collection for each MeiiiLer's Unit. Each Owner is responsible for obtaining and paying for all water, gas an' electrical services for his Building Element; 5.1.3 Grant easements where necessary for utilities and scwcr l.jcilitius over tlie Cuniiiiuti Area and Lots tu serve tlie Conunoti Area and the Units: 5.1.4 Maintain such policy or policies of insurance as tlte Board deems necessary or desirable in furthering the purposes of and protecting the interests of the Association and its Members; provided, however, the Board shall make available to the Owners a cccplete inventory of insurance carried by tlie Association and will notify all Owners of any changes in coverage that may affect the insurance needs of the Owners; 5.1.5 Have the authority to employ a manager or other persons and to contract with independent contractors or managing agents to perform all or any part of the duties and responsibilities of the Association; 5.1.6 iiave the power to establish and maintain a working capital and contingency fund from regular assessments in an amount to be determined by the Board; 5.1.7 Have the power ai.d duty, subject to the rights of the Declarant as provided herein, to enforce the provisions of this Declaration by appropriate means, including, without LiiTitation, the expenditure of funds of the Association, .the empluyn.ent of legal counsel and the commencement of actions; 5.1.8 Pay any real and personal property taxes and other cliacges assessed to or payable by the Association; j.i.9 Adopt reasonable rules not inconsistent with .,1' . ; , oi'.i.in, th' •-rv-irli's, -:• he Bylaws relat i'lg :.o the use of '..'le Ccr...-noii ,\rn<i and all !aci".ities hereon, int: ..>e <^ conduct of C"wners and their tenants and guests with respect to • the Subject Property and other Owners; and private roadways and parking areas related to the Project. 5.2 Maintenance of Project by Association The Association shall provide maintenance and repair of all landscaping, drainage, flood control and parking facilities on the Conmon Area. The Association shall maintain the retention basins which have been constructed in the Common Areas throughout the property. The responsibility ofi the Association for maintenance and repair shall not extend to the cost and expense of repairs or replacements arising out of or caused by the willful or negligent act or neglect ofi an Owner, or his guests, tenants or invitees. The cost and expense of repair of replacement of any portion of the Conmon Area resulting from such excluded items shall be the responsibility of such Owner. The Association shall cause such repairs and replacements to be made at the Owner's sole cost and expense and if an Owner shall fail to pay for such repairs or replacements, the cost thereof (plus interest from the date of payment at the maximuni legal rate) shall be added to the assessments chargeable to such Unit and shall be payable to the Association by the Owner of such Unit. 5.3 Association Easements For the purpose o^ performing the maintenance and management authorized by this Article or for any other purpose reasonably related to the performance by the Board of its responsibilities under this Declaration, the Association (and its agents and employees) shall have an easement over and onto all porticns of the Conmon Area, including, but not limited to, the Special Landscaped Areas. 5.4 Owner's Default If there is a default by an Owner :nder an Owner's sublease agreement or under the Master Lease, the Association and/or the Declarant shall have the right (but not the obligation) to cure the default for and on behalf of the Owner and at the Owner's sole cost and expense. ENU OP ARTICLE 5 ENTITLED DUTIES AND POWERS OF THE ASSOCIATION •o 5. ^ ^0 - 427 ARTICLE 6 UTILITIES 6.1 Owner's Rights and Duties The rights and duties ofi the Owners of Units within the Project with respect to utilities shall ba as followst 6.1.1 Whenever sanitary sewer, water, electric, gas, television receiving, or telephone lines or connections, heating or air-conditioning conduits, ducts, or flues are located or installed within the Project, which connections, or any portion thereof lie m or upon Units owned by other than the Owner ofi a Unit served by said connections, tha Owners ofi any Unit served by said connections shall have the right, and ace hereby granted an easement to the full extent necessary therefor, to enter upon the Units or to have the utility companies enter upon the Units in or upon which said connections, or any portion thereof lie, to repair, replace and generally maintain said connections as and when necessary. 6.1.2 Whenever sanitary sewer, watar. electr. , gas, or telephone lines or connections are locatea or installed within the Project, which connections serve more than one Unit, the Owner of each Unit served by said connection shall be entitled to the full use and enjoyment of such portions of said connections as sgrvice his Unit. 6.1.3 In the event of a disputaP'betweaniliOwtiavjigytith respect to the repair or rebuilding of said connections, or with respect to the sharing of the cost hereofi, then, upon written request of one of such Owners addressed to th Association, the matter shall be submitted to the Board, which shall decide the dispute, and the decision of the Board shall be final and conclusive on the parties. 6.1.4 Each Owner shall at all times ba solely responsible for the maintenance, repair, and insurance of his entire Building Element. 6.2 Easements for Utilities and Maintenanci Easements over and under the Subject Property (including, without limitation, the Special landscaped Areas) for the installation, repair, and maintenance of sanitary sever, water, electric, gas, and telephone lines and facilities, drainage facilities, walkways, and landscaping of the Subject Property, are hereby reserved by Declarant and its successors-in- interest and assigns, including the Association, togeth-tr with the right to grant and transfer the same. 6.3 Association's Duties The Association shall maintain all utility installations located in the Common Area except for those installations maintained by utility companies, public, private, or municipal. The Association shall pay all charges for utilities supplied to the Project except those metered or charged separately to the Units. END OF ARTICLE 6 ENTITLED UTILITIES -16- •O 7.1 Architectural Approval Subject to the exenption of Declarant under Article 7.12 below, no building, fence, wall, sign or other structure ofi any kind shall be ccnsMnced, erected or maintained upon the subject property, nor shall any exterior addition thereto or change or alteration therein be made until the plans and specifications showing the nature, kind, shape, color, size, height, materials and location of the same shall have been submitted to and approved ur disapproved according to a standard of good faith discretion in writing as to harmony ofi external design and location in relation to surrounding structures and topography by the Architectural Control Committee ("Committee") provided for herein. In the event the Committee, or its designated representatives, fails to approve or diiiapprove the design and location within thirty (30) days after said plans and specifications will be deesied to have been disapproved. All inprovement work approved by the Committee shall be diligently completed. Any changes or alterations to plans an<3 specifications approved by the Committee, shall be resubmitted for approval as though it was a new submission. No approval shall be required to rebuild in accordance with plans and specifications previously approved by the Committee; not shall submission of plans and specifications relating to normal maintenance (including, nut not limited to, repainting in accordance with the original color scheme) be required. 7.2 Landscaping Approval No trees, bushes, shrubs, or plants shall be planted or installed until the plans md specification for the species and placement of any such trees, bushes, shrubs or plants, and the irrigation systems therefor, have been submitted to and approve') or disapproved according to a standard of good faith discietioii lit writing by clie c'uimui 1.1cL;. .':cii<l (ilitiis .is submitted shall show in detail the proposed elevations ana locations of said trees, bushes, shrubs or plants and irrigation system for maintenance. All such plans and specifications shall meet the requirements of the City of Carlsbad. 7.3 Appointment of Architectural Committee Declarant shall init.ialiy appoint the Committee, consisting of an odd number of members not less than three (3), who shall remain in office until: (a) fifteen (IS) years from the date of recording ofi this Declaration; or (b) all of the Units in all Phases have been conveyed by Declarant, whichever sliall first occur: or (c) unless replaced by soniuone else designated by Declarant in its sole ard absolute discretion. From and after such time or event, as tlie case m^iy be, the Committee shall be appointed by a vote of the Bo.ird and shall b^ composed of three (3) or more representatives. tn the event of the death or resignation of any member of the Coiunittee prior to the time when the Board is vested with the authority to appoint members thereof. Declarant shail have the right to appoint such member's successor. 7.4 No Liability Plans and specifications shall be approved by the Committee as to style, exterior design, appearance and locations, and are not approved for engineering design or for compliance with zoning and building ordinances, and by approving such plans and specifications neither tlie Committee, the members thereof, nor Declarant assumes liability or res|>onsibility therefor, or for any defect in any structure constructed from such plans and specifications. Further, neither Declarant the Committee (or the members thereof) shall be liable in damages to anyone submitting plans or specifications to t' approval, or to any Owner affected by these restrictions reason of .ni'itakc in judgement, representation, express -17- p .-a i implied, negligcDce, or nonfeasance arising out ofi or in connection with the approval or disapproval or failure to approve or disapprove any such plans or specifications. Every person who submits plans or specifications, and every Owner agrees that he will not bring any action or suit against Declarant, the CoamU.ttee, or any of the members thereof to recover any such damages. 7.5 Notice of Noncompliance or Noncoir.pletion Notwithstanding anything to the contrary contained herein, after the expiration ofi the later of one (1) year firom the date ofi issuance ofi a building permit by municipal or other governmental authority for any improvements or one (1) year from the commencement ofi construction of any inprovements within the Subject Property, said improvement shall, in favor of purchasers and encumbrancers in good faith and for value, be deemed to be in compliance with plana and specifications approved by the Coonittee and with the rules and regulations established by the Committee, unless actual notice of su':h noncompliance and noncompletion, executed by the Conmittee or its designated representatives, shall appear of record in the office of the County Recorder of San Diego, California, or unless legal proceedings shall have been instituted to enforce compliance or completion. 7.6 Rules and Regulations; Guidelines The Crj—ittee may from time to time, in its sole and absolute discretion, adopt, amend and repeal architectural and landscaping guidelines, rules, and regulations interpreting and implementing the provisions' hereof. 7.7 Variances Where circumstances, such as topography, location of property lines, location of trees, or other matters require, the Committee, by the vote or written consent of a majority of the members thereof, icay allow reasonable variances as to any of the covenants, conditions or restrictions contained in this Declaration under the jurisdiction of such Committee, on such terms and conditions as i*. jhall require; provided, however, that all such variances shall be in keeping with the general plan for the improvement and development of the Subject Property. Such variances will be granted on a case-by-case basis, and issuance of such a variance shall not siit a precedent for issuance of any other variance. 7.8 Appointment and Designation The Committee .-nay from time to time, by the vote or written consent of a majority of its members, delegate any of its rights or responsibilities hereunder to one or more duly licensed architects or other qualified persons who shall have full authority to act on behalf of said Committee in all matters delegated. 7.9 Review Fee and Address Any plans and specifications shall be submitted in writing for approval together with a reasonable processing fee as set by the Committee in its good faith discretion. The address of the Committee shail be such place as the Committee may from time to time designate in writing. Such address shall be the place for the submittal of any plans ar.d specifications and the place where the current rules and regulations, if any, of the Committee shall be kept. 7.10 Inspection Any :3ember or agent of the Conuiittee may from time to time Jt any re sonable hour or hcurs and upon reasonable notice enter and insp.^ct any property suoject io the jurisdiction of -i Che Committee as to its improvement or maintenance in compliance^ with the provisions hereof. -18- •o 7.11 General provisions The members ofi the Committee shall not be entitled to ^htreafiter the awro^l described in this covenant shall not be ^l^ntred^less, Sior to said date and efifiactive thereon, a 3^tten iMi"m;nt .Sail be executed and duly recorded by a minority of the Owners ofi the Units in all phases appointing a rep?eiantative orrepresentatives who shall thereafiter exercise thetl^e Jowers previously exercised by the Committee. 7.X2 Nonapplicability to original Construction The provisions of this Article shall " ,.on«truction, landscaping or other improvements by Declarant as nart of the Initial development of the Subject Property (aa the llll Siv b^ expanded through annexation) or as part of tha iarkeUng^roglam for sale of Units within th. Project. END OF ARTICLE 7 ENTITLED ARCHITECTURAL CONTROL •J!«- •19- f USE RESTRICTIONS 8.1 Permitted Uses Except as prohibited by this Article 8, the Subject Property and buildings constructed or to be c-jnstructed thereon shall be used for industrial, research, and development purposes as well as for office and related commercial purposes so long as such purposes are consistent with the Specific Plan and the zoning and other such applicable ordinances of the City of Carlsbad, California, or such other governmental agency having jurisdiction, and so long as such purposes are consistent with any restrictions and/or permitted uses referenced in any declaration of covenants, conditions, and restrictions of record or any other document ofi record. 8.2 No Residential Use No part ofi the Subject property shall ever be used or caused to be used or allowed or authorized in any way, directly or indirectly, for any residentiai or other non-business purpose except as permitted by the City of Carlsbad and for employee or guest requirements. 8.3 Nuisances No noxious, offensive, or highly hazardous trade or activity shall be carried on, upon, or within any portion of the Subject property or improvement thereon, nor shall anything be done thereon which ir.ay be, or -nay become an annoyance or public or private nuisance to other owners or to the neighborhood (including, but not limited to, vibration, electro-magnetic or electrc-i'.iecharical disturbance, radiation, air or water pollution, the unreasonable emission of dust, odor, gas, smoke, fumes, noxious, toxic or non-tcxic matter, or noise) or which shall in any way interfere with the quiet enjoyment of each of the Owners, or which shall in a:.y way increase the rate of insurance or cause a policy to be cancelled or not renewed, or will impair the structural integrity of any improvement on the Subject Property. 8.4 Oil Drilling and Mining No oil drilling, oil development operations, oil refining, quarrying or mining operations of any kind shall be permitted upon or in the Subject Property or any portion thereof nor shall oil wells, tanks, tunnels or mineral excavations or shafts be permittee upon the surface of the Subject Property or any portion thereof or within five hundred (5U0) feet below the surface uf the Subject Property. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted upon the Subject Property or any [ortion thereof. 8.5 Antennas NO television, radio. Citizen's Band, cr other electronic antenna or device of any type shall be erected, constructed, placed or permitted to remain on any of the buildings cons'.ructed on the Subject Property if such antenna or device is visible from any viewing position outside of a building. 8.6 Animals No .jnimals, pets or poultry of any kind shall be raised, bred or kept on any portion of the Subject Property. 9.7 Rubl' ..h, ,:.tc. All rubbish, trash and garbage shall be regularly removed from the Subject Property and shall not be allowed to accumulate thereon. All outdoor refuse collection areas shall be completely •inclosed and -icreened from access streets ciiul S5 •o adjacent property by a block wall at least six (6) feet in height as approved by the Land Use Planning Manager of the City of Carlsbad. All such areas shall have concrete floors, and shall be of sufficient size to contain all refuse generated by the business. These areas shall be no less than six feet by eight feet in size. No refuse collection areas shall be pennitted between streetside and the building line. U.8 Vehicular Storage and Parking, Storage Except for that area in Lot 23 of Unit 1 which is within the 2U0 foot easement to San Diego Gas Electric recorded April 15, 1954 as document No 49241 at Book 5205 page 416 and to the extent permitted by he City of Carlsbad therein, no recreational Vehicle, trailer, jumper, boat or similar equipment shall be permitted to remain upon the Subject Property. There shall be no parking within the Subject Property other than temporary parking in areas designated for parking, with the exception of the heretofore mentioned portion of Lot 23. Temporary parking shall mean parking of delivery trucks, service vehicles and other commercial vehicles being used in the furnishing of services to the Owners and the temporary parking while conducting business or engaged in employment on the Subject Property of vehicles belonging to or being used by Owners, their employees, guests, agents, or invitees. Parking areas shall be landscaped in such a manner as to interrupt or screen said areas from view from access streets and adjacent properties. All outdoor storage (which shall include the parking of business-owned or business-operated motor vehicles] Shall be^visually screened from adjacent streets and property. Said screening shall consist of a aolid concrete or masonry wall ;or a wall of other durable material approved by the Land Use Planning Manager of the City of Carlsbad) which wall shall not be less than six feet in height. No storage shall be permitted between streetside and the building line. 8.9 Outdoor Activities All activities associated with the businesses being conducted cn the Subject Property must be conducted completely within the improvements on the Subject Property; provided however, usual and customary loading and unloading activities during iiuriral business hours shall be excluded from this restriction. 8.10 Condition of an Owner's Unit The Owner of any Unit shall at ali times keep the Unit in a cood, safe, and sanitary condition and he shall comply in all respects with all govertunent, health, fire, and police requirenients and regulations. Undeveloped or unpaved areas shall be maintained free of weeds, rubbish, debris or unsightly materials or objects of any kind. 8.11 Liability of Owners for Uamage An Owner of a Unit shall be liable for all damages to other Units or improvements caused by such Owner or any occupant of his Unit or invitee or agent or employee of such Owner. 8.12 Maximum Sound Levels, Etc. None of the uses permitted within the Subject Property shall produce the following: 0.12.1 Noise in excess of VO decibels (American Standard for nuise level meters): a. For a cumulative period of more than 30 niiiates in any hour; or b. Plus 5 decibels for a cumulative period ct more than 15 minutes in any hour; cr c. Plus 10 lecibels for a cumulative period of mure than 5 minutes in any hour; or d. Plus 15 decioels for a cumi'iative period of iioie than 1 minute in any hour; or -21-•O 09 Ok e. Plus 20 decibels for any period ofi time. 8.12.2 Vibration, heat, glare, or electrical disturbances beyond the boundaries ofi the Subject Property. 8.12.3 Air pollution detectable by the human senses without the aid of instruments, beyond the boundaries of the Subject Property. a.12.4 Emissions which endanger human health which can cause damage to animals, vegetation or property, or which can cause spilling at any point beyond the boundaries of the Subject Property. 8.12.5 Odor detectable by the human senses without aid of instruments beyond the boundaries cf the Subject Property. 8.13 Wastes All wastes discharged into the wastewater discharge system wll conform to the City of Carlsbad standards, as the same may -e revised from time to time. 8.14 Billboards and Signs Ho billboards shall be constructed, installed, or maintained on the Subject Property. Any signs, banners, or like displays which may be placed in or upon the Subject Property, except those approved by the Committee, shall be prohibited. No freestanding signs shall exceed eight (8) feet in height. No sing of any kind shall be displayed on any portion of the Subject Property, except in strict accordance with the Sign Criteria established in Exhibit F attached hereto and by this reference made a part hereof, and then only after receiving Committee approval. 8.15 Air Pollution Guidelines All uses on the Subject Property shall comply with applicable air pollution regulations including regulations for control of airborne dust during construction. -^^ 8.16 Other Operations ana Uses Operations and uses that are neit.-ier specifically prohibited nor specifically authorized by this Declaration may be permitted in a specific case if written operational plans and specifications for such operations ar... uses, containing such information as may be requested by the Committee are submittea to and approved in writing by the Committee, which approval shall be based upon analysis of the anticipated effect of such operations or uses upon other Units, and upon the occupants thereof, but shall be in the.sole and absolute discretion of the Committee. 8.17 Loading Restrictions On those special landscaped streets identified in the Specific Plan, no loading or unloading shall be allowed which is visible from adjacent streets. On streets other than such special landscaped streets, streetside loading and unloading shall be permitted provided that the loading dock is set back at least seventy (70) feet from the street right-of-way line. All loading areas shall be screened from adjacent streets. 8.18 Metal Structures No metal structures with metal sliding or sheeting exteriors shall De permitted on tne Subject Property. 8.19 Screening of Equipment Exterior components of plumbing, processing, heating, cooling and ventilating systems (including, but net limited to, piping, tanks, stacks, collectors, heating, cooling and -22- •O 00 0» ventilating equipment, fans, blowers, ductwork, vents, louvers, meters, compressors, motors, incinerators, ovens, etc.) shall not be directly visible to the surrounding areas to the satisfaction of the Land Use Planning Manager ofi the City ofi Carlsbad. Transformer or terminal equipment shall be visually screened from view fron streets and adjacent properties. 8.20 No Warranty of Enforceability While Declarant has no reason to believe that any of the restrictive covenants contained in this Article 8 or elsewhere in the Declaration are or may be invalid or unenforceable for any reason or to any extent. Declarant makes no warranty or representation as to thc present or future validity or enforceability of any such restrictive covenant. Any owner acquiring a Unit on the Subject Property in reliance on one or more of such restrictive covenants shall assume all risks of the validity and enforceability thereof and. by acquiring the Unit, agrees to hold Declarant harmless therefrom. END OF ARTICLE 8 ENTITLED USE RESTRICTIONS -23- 9.1 follows t INSURANCE AND DESTRUCTION OF IMPROVEMENTS Insurance Insurance shall be maintained on the Project as 9.1.1 Association Liability Insurance The Association shall obtain and continue in effect comprehensive public liability insurance insuring the Association, the Declarant and the agents and employees of each and the Owners and the respective guests and invitees of thc Owners against any liability incident to the use of the Conunon Area, and including, if obtainable, a cross-liability endorsement insuring each insured against liability to each other insured, and a "severability ofi interest" endorsement precluding the insurer from denying coverage to one Owner because of the negligence of other Owners or the Association. The scope of the coverage shall include all other coverage in the kinds and amounts required by private institutional mortgage investors for projects similar in construction, location and use. 9.1.2 Association Hazard Insurance Additionally, the Association shall obtain and continue in effect a policy of fire and extended coverage insurance for no less than one hundred percent (100%) of replaccaent cost ofi insurable real and personal property within the Common Area. Such policy may also contain vandalism and malicious mischief coverage, special form endorsement, stipulated amount clause and a determinable cash adjustment clause, or a similar clause to permit cash settlement covering full value of the improvements on the Common Area in tha event of destruction and a decision not to rebuild pursuant to this Declaration. Such policy shall name as insured the Association, for th« benefit of the Owners and Declarant (so long as Declarant is an Owner of ^iny Units). 9.1.3 Additio-'al Association Insurance The Association may purchase such other insurance as it may deem necessary, including without limitation plate-glass insurance, workers' compensation, directors' liability, and errors and omissions insurance, and shall purchase fidelity coverage against dishonest acts on the part of directors, managers, trustees, employees or volunteers of tho Association who are responsible for handling funds collected from and held for the benefit of the Owners. The fidelity insurance shall name the Association as the insured. In connection with such fidelity ccverage, an appropriate endorsement to the policy to cover any persons wno serve without compensation shall be added if the policy would not otherwise cover volunteers. 9.1.4 Insurance Premiums The cost of insurance policies acquired under Article 9.1 shall be a common expense to be included in the asaesements levied by the Association. The acquisition of insurance by the Association shall be without prejudice to the right of any Unit Owner to obtain additional individual owner's insurance. 9.1.5 Unit Hazard Insurance In addition to the policies which the Association shall carry on the conmon Area, each individual Unit Owner shall obtain and oontinue in effect insurance coverage which shall be equal to or greater than fire and extended coverage and shall be at least e^uu 1 to tliat CUIIIIMHIIly required bv private institutional mortgage investors in the area in whic -24- S •o ^ 00 the Project is located, including liability insurance of not less than $2,000,000.00. The policy shall provide, as a minimum, flre and extended coverage Insurance on a replacement cost basis in an aoKSunt not less than that necessary to comply with any co-insurance percentage stipulated in the policy, but not less than eighty percent (80%) of the insurable value (based upon replacement cost of the Unit). Except for insurance under the National Flood Insurance Act of 1968, as amended, and for deductibles, the amount of coverage shall be sufficient so that in the event of any damage or loss to the Unit of a type covered by the insurance, the insurance proceeds shall provide at least the lesser of: (1) compensation equal to the full amount ofi damage or loss, or (ll) compensation to the first mortgagee under the mortgage equal to the full amount of the unpaid principal balance of the mortgage loan. Flood insurance shall be maintained if the Project is located in an area subject to special flood hazards. 9.1.6 Waiver of Subrogation; Notice of Cancellation All property and liability insurance carried by the Association or the Owners shall contain provisions whereby the insurer waives rights of subrogation as to the Association, officers, and directors, and any Members, their guests, agents and employees. All policies of hazard insurance must contain or have attached the standard mortgage clause commonly accepted by private institutional mortgage investors in the area in which the Units are located. All Insuranca carried by the Association shall contain a provision requiring the insurer to notify Institutional lenders requesting such notice, at least ten (10) days in advance of the effective date of any reduction in or cancellation of the policy. 9. 2 Destruction of Improvements 9.2.1 Reconstruction of Unit(s) In the event of damage to or destruction of any Unit, the Owner shall reconstruct the same as soon as reasonably practicable, and substantially in accordance with the original plans and specifications therefor. Each Owner shall have an easement of reasonable access onto any adjacent Unit for purposes of repair or reconstruction of his Unit as provided in this Subarticle. 9.2.2 Comnon Area Improvements If any of the Common Area Improvements are damaged by fire or other casualty, insurance proceeds payable to the Association shall be used to rebuild or repair such damage substantially in accordance with the original plans and specifications therefor. Any excess insurance proceeds shall be deposited to the general funds of tne Association. In the event the proceeds of the Association's insurance policy are insufficient tc rebuild or repair such improvements, then, as soon as reasonably possible, a majority of the voting power of the Association shall decide to either (a) use funds from its account or if necessary from levying a special assessment on all Unit Owners (or on those responsible for the damage) to restore or rebuild said improvements; or (b) clear and landscape the Common Area for use as a comniunity park, if appropriate, in which case excess proceeds shail, in the discretion of the Board, be r.stained in the general funs of the Association or be distributed to the Owners pro-rata. If the Board does not take reasonably prompt action under this Article 9.2, any Member may call a si>ecial meeting as provided in the Bylaws Lo discuss the matters contained herein. 9.3 Condemnation In the event of any taking of any Unit in the Project by eminent domain, the Owner of such Unit shall be entitled to receive the award for such taking and after acceptance thereof, he and his mortgagee shall be divested of all interest in the -25- •O o 00 Ok ^^^^ proiect l£ such Owner shall vacatJlhis Unit as a result ofi such tlkiSg! in the e^Snt ofi a taking by eminent domain ofi more than ll the same time, the Association shall participate in "2jottatiS«?^lS!il propose the method ofi division ofi the proceeds ofi Undeanatlon, where Units are not valued «pa«tely Sy thecoodemnlng authority or by the Court. In the avSnl iS unit WTdisagrees with the proposed allocation, he maJhavS'the matter sub-ilted to arbitration under the rules ofi the American Arbitration Association. EHD OF ARTICLE 9 ENTITLED DESTRUCTION OF IMPROVEMENTS -26- •o o» MAINTENANCE BY UNIT OWNERS 10.1 Owner's Right and Obligation to Maintain and Repair Each Unit Owner shall, at his sola cost and expense, maintain and repair his Building Element, keeping the same in good condition. In the event an Owner fails to maintain the same as provided herein In a manner which the Board deems necessary to preserve the appearance and value of tha Subject Property, tha Board may notlfiy Owner ofi tha woric required and request it be dome within fiifiteen (15) days from the giving of such notice. In the event Owner Calls fior carry out such maintenance within said period, the Board may cause such work to be done and may specially asses the cost thercofi to such Owner, and, if necessary lien hia Unit for the amount thereof. 10.2 Disputes Ifi any dispute arises concerning the provisions ofi this Article 10 which cannot be resolved under the terms ofi this Declaration, then the matter may be submitted to arbitration under the rules of the American Arbitration Association. END OF ARTICLE 10 ENTITLED MAINTENANCE BY UNIT OWNERS \ •nil i •O -27- •4^ o» Cv. 439 ARTICLE 11 GENERAL PROVISIONS 11.1 Enforcement The Association, Declarant, or any Owner or the successor in interest ofi any Owner shall have the right to enfiorce by proceedings at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions ofi this Declaration or any amendment thereto, including the right to prevent the violation of any such restrictions, conditions, covenants or reservations and the right to recover damages or other dues fior such violations; provided, however, that with respect to assessment liens, the Association shall have the exclu.iv. right to the enforcement thereof. Failure by the Association or by any Owner to enfiorce any covenant, condition or restriction herein contained shall In no event be deemed a waiver ofi the right to do so thereafiter. 11.2 Negligence and/or Willful Misconduct The cost of any maintenance or repair services required to be performed by the Association which are caused by the negligence, neglect or willful misconduct of any Owner, or his employees, guests or invitees shall be borne entirely by such Owner and will be a special assessment against such Owner and his Unit. 11.3 Severability Invalidation of any one of these covenants, conditions or restrictions by judgement or court order shall in no way affect any other provisions which shall remain in full force and effect. 11.4 Term The covenants, conditions and restrictior.s of this Declaration shall run with and bind the Units, and shall inure to the benefit of and be enfoice-^Lle by the Association or the Owners of any Unit, their respective legal representatives, heirs, successors and assigns for a ter.n of fifty (50) years from the date this Declaration is recorded, after which time said covenants, conditions, and restrictions shall automatically be extended for successive periods of ten (10) years, unless an Instrument, signed by a majority of the then Owners, has been recorded, agreeing to change said covenants, conditions and restrictions in whole or in part. 11.5 Construction The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for the development of a building complex and Common Area within the Subject 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. Ifi there is any conflict among or between the Project Documents, the provisions of this Declaration shall prevail; thereafiter, priority shall be given to Project Documents in the following order: Articles; Bylaws; and rules and regulations of the Association. 11.6 Amendments Except as otherwise specifically provided herein, this Declaration of Covenants, Conditions, and Restictions may be amended only by an instrument in writing signed by not less than seventy-five percent (75%) of the voting power of the membership of the Association and, further, this amendment provision shall not be amended to allow amendments by the assent or vote of less than seventy-five percent (75%) of the voting ^ -28- » i •o power of the membership of the .\sl<7if£ation. Any amendment must be properly recorded. No amendment to Article 5.1.1 or to Article 11.15 shall be valid without the prior written consent to such amendment by the City of Carlsbad. 11.7 Mortgage Protection Clause No breach ofi the covenants, conditions or r«Rtrirr. inns herein contained in this Declaration, nor the enforceiuent of any lien provisions herein, shall deleut or render invalid the lien ofi any fiirst Mortgage (meaning a Mortgage with fiirst priority over any other Hortgage) on any 'Unit made in good faith and for value, but all of said covenants, conditions and restrictions shall be binding upon and effective against any Owner whose title is derived through foreclosure or trustee's sale, or otherwise. 11.8 Singular Includes Plural Whenever the context of this Declaration requires same, the singular shall include the plural and the masculine shall include the feminine. 11.9 Nuisance The result of every act or omission, whereby 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 nuisance, either public or private, shall be applicable against every such result and may be exercised by the Declarant, Conmittee, the Association or any <^ner. Such remedy shall be deemed cumulative anci not exclusive. 11.10 Encroachment Easements Each Unit within the Subject Property is hereby declared to have an easement nver all adjoining Units and the Common Area for the purpose of accommodating any encroachment due to engineering errors, errors in original construction, settlement or shifting of the buildings, or any other cause. There shall be valid easements for the maintenance of said encroachments as long as they shall exist,, and the rights and obligations of Owners shall not be altered in any way by said encroacluuent, settlement or shifting: provided, however, that in no event shall a valid easement for encroachment be created in favor of an owner or Owners if said encroachment occurred due to the willful misconduct of said Owner or Owners. In the event a structure is partially or totally destroyed, and then repaired or rebuilt, the Owners of each Unit agree that minor encroachments over adjoining Units or Common Area sliall be permitted and that there shall be a valid easement for the maintenance of said encroachments so long as they shall exist. 11.11 Nonliability of Officials To the fullest exten Eoard, the Committee, and other any member of such Board or any Member or the Association for a suffered or claimed on account approval of plans or specificat course of action, act, omission ma<Je in good faith witliin which persons reasonably believed to t permitted by law. neither the committees of the Association cr committee shall be liable to any ny damage, loss or prejudice of any decision, approval or dis- ions (whether or not defective), er.rur, negligence or the like suc'n Board, committees or be the scope of their duties. 11.12 Owner's Easements of Enjoyment Every Owner (and his guests, clients, and invitees) shall luive a right of easement of enjoyment in and to the Coiitiic Aroa (including any luture Common Area describeil or '.he attach*? Exhiljit . once such future Common Area is annexed tu the Subje •? I'roijcrty) , including but not liiiiitpu to a right of a<:cess, ingress, and cjress, an easenent for paiking purposeii and Jar •o 4^ 2* , o> easements for utilities, sewage and drainage (Including, without limitation, non-exclusive easements for drainage over the Subject Property leading to the retention basin on the Subject Property), and such easements shall be appurtenant to and shall pass with the title to every Unit, subject to the following provis ionsi (a) The right of the Association to establish rules and regulations pertaining to the use of the Common Area; and (b) The right of the Association to suspend the voting rights and right to use the Common Area by an Owner (and his guests, clients, and invitees) for any period during which any assessment against his Unit remains unpaid and delinquent; and for a period not to exceed thirty (30) days from any single infraction of the rules and regulations of the Association, provided that any suspension of such voting rights or right to use the Common Area, except for failure to pay assessments, shall be made only by the Association or a duly appointed committee thereof, after notice and hearing given and held in accordance with the Bylaws of the Association. 11.13 Owner's Compliance 11,13.1 Each O^ner, tenant o£ occupant of a Unit shall comply with the provisions of the Project Uocuneiits and all <iecisLons and resolutions of the Association or its duly authorized representative, and failure to comply with any such provisiona, decisions, or resolutions, shall be groui.ds for an actioii t^ recover sums due, for damages (Including costs and attorneys' fees), and/or for injunctive relief. All agreements 'Hid '.ieterminaticns lawfully made by the Association in accordance with the voting percentages established in this ;)cclaratii,ii or in the Bylaws, shall be deemed to be binding on all .-.vners of ',nits, their successors and assigns. Il.l3.i Any ameement for the leasing, sJb- lensing, licensing ot assi-gr.reiit of a Unit (hereinafter in this Article referred to as a "lease", the person occupying the Unit umlor su'.-h a lease is hereinaf er referred to as a "Lessee" shall provide that the terms of such lease shall be subject in all respects to the provisions of this Declaration. Any owner who shall ise his Unit shall be responsible for assuring cci;j)l iari-c :.y such Owner's lessee with any lease, this Declaration, the Articles, the Bylaws and the Associations's rules aiKl regulations. 11.14 Construction By Declarant Nothing in this Declaration shall limit the right of Ueclaiant to alter the plan of development, cr to co:istruct such additional improvements as Declarant deems advisable prior to completion of improvements upon and sale of the entire Project. Such right shall include but shall not be limited to erecting, constructing and Riaintaining on the Subject Property such structures and displays as may be reasonably necessary for the conduct .jf the business of completing the work and disposing of the same by sale, lease or otherwise. This Declaration shall not limit the right of Declarant at any time prior to acquisition of title from Declarant to establish on the Subject Property additional licenses, reservations and rights-of-way to itself, to utility companies, or to otlers as may from time to time be reasonably necessary to the (jioper development and .11 1 nf t lic! ITojoft. Dcf 1.1 r ii ivt i<"-.crves the riijht to .iltpr Its construction plans and designs as it deems appropriate. I'tie rights of Declarant hereunder may be assigned to any successor or successors to all or part of said entity's respective interest in the Project, by an express assignment incorporated in ft recorded deed or lease, cis the case may be, transferring sucl. mteres". to such successor. Declarant shall exercise is r ights-coutaiiieu in this provision in such a way as not to uiirfiisoriat-ly intjr'^ere with the Member's rights to use and eiijt^ the Subje'jt (Jrcpe'-./. ; -iO- C 442 11.15 Indemnification cf City of Carlsbad Declarant agrees to indemnify and hold the City of Carlsbad harmless from and against (I) liability for persona:, injury, (2) liability fior property damage and (3) liability resulting from judgements rendered in inverse condemnation actions. This indemnification shall apply to the foregoing types of liability which are caused by or result from (I) the operation of the Palomar Airport, (2) aircraft using Palomar Airport or (3) the City's approval of the Final Map for this Project. This indemnification shall apply to that portion of the Project located within the FAA "clear zone" or "crash zone" as identified on the Environmental Impact Report (EIR 81-6) prepared in connection with Declarant's application for a Final Map for the Project. This provision shall be binding upon and shall inure to the benefit of Declarant's succesors-in-interest, transferees, and assigns. Upon the transfer or assignment of the property making up the Project, Declarant shall be relieved of all obligations, duties, responsibilities, and liabilitier. imposed upon it by this indemnification. The undersigned, being the Declarant herein, has executed this Oeclaration on 5eyt»-.vV,«<- H • 1986. CARLSBAD AIRPORT CENTRE, a California limited partnership By: COMMULNiTY KbSOLKCES CORPORATION, a Nevada corporation (C-entral Partner) '< y • ^ (/ ay Seem hy 1 z JarIsLai Michdc. . z;: i ler. Land £e Planning Manager •-•-.u AnTicLi; i; i:.i iTLEU I Jar •o O CO 443 STATE OF CALIFORNIA COUNTY OF^ On ^dTv Notary Pubiic ) ) _) ss. , 1986 befiore me. In and "for said St^te, and the ndersigned. 'a Notary Public in ana ror '—^'T^^J^Su!^^ PPeared ft^ x flit t n> >hf M y -,^,o„^uy knt.7 to me^o'r^'g^ed CO »e on the basis of sati^ctory .via^^ncgKi^ P«»on- who executed the within instrument as •^^^teJ^iTofi COMMUNITY rESO^^fi^^TION, a Nevada coiporation the corporation that executed the within ?tner.h?p. the AIRPORT CENTRE, a CaUfornia limited P*«^«,„^P partnership that executed ^l^^^^^^^^i^n executed the same as WITNESS my hand and official seal. Notary County iar •o -32- 444 EXHIBIT A LOTS 1 THROUGH 25 INCLUSIVE. OF CARLSBAD TRACT NO. 81-46 UNIT NO. 1. IN THE CITY OF CARLSBAD, COUHTY OF SAN DIEGO. STATE OF CALIFORMIA. ACCORDING TO MAP THEREOF NO. 11287, FILED IM THE OFFICE OF COUNTY RECORDER OF SAN DIEGO COUNTY. EXCEPTING THEREFROM 50 PERCENT OF ALL OIL, MINERAL. GAS, AND OTHER HYDROCARBON SUBSTANCES BELOW A DEPTH OF SOO FEET UNDER THE REAL PROPERTY DESCRIBED HEREIN, WITHOUT THE RICHT OF SURFACE ENTRY. AS RESERVED BY CARLSBAD PROPERTIES, A PARTNERSHIP. IN A DEED RECORDED JULY 5, 1978. RECORDER'S FILE NO. 78-279136 -33- / Coir*on Ataaa Carlsbad Airport Centre Exhibit 8 - Common Areas Csnirs DeMiopmant Wlmnwr Yimnada & Assodstos «u-s 98 EXHIBIT C LOTS 26 THROUGH 49 INCLUSIVE OF CARLSBAD TRACT NO. 81-46 UNIT NO. 2, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO. STATE OF CALIFORNIA. ACCORDING TO MAP THEREOF NO. 11288, FILED IN THE OFFICE OF COUNTY RECORDER OF SAN DIEGO COUNTY. EXCEPTING THEREFROM 50 PERCENT OF ALL OIL, MINERAL, GAS. AND OTHER HYDROCARBON SUBSTANCES BELOW A DEPTH OF 500 FEET UNDER THE REAL PROPERTY DESCRIBED HEREIN. WITHOUT THE RIGHT OF SURFACE E;NTRY. AS RESERVED BY CARLSBAD PROPERTIES, A PARTNERSHIP, IN A DEED RECORDED JULY 5. 1978, RECORDERS FILE NO. 78-279136. LOTS SO THROUGH 76 INCLUSIVE OF CARLSBAD TRACT NO. 81-46 UNIT NO. 3, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 11289, FILED IN THE OFFICE OF COUNTY RECORDER OF SAN DIEGO COUNTY. EXCEPTING THEREFROM 50 PERCENT OF ALL OIL, MIKERAL. GAS, AND OTHER HYDROCARBON SUBSTANCES BELOW A DEPTH OF 500 FCET UNDER THE REAL PROPERTY DESCRIBED HEREIN, WITHOUT THE RIGHT SURFACE ENTRY, AS RESERVED BY CARLSBAD PROPERTIES, A PARTNERSHIP, IN A DEED RECORDED JULY 5, 1978, RECORDERS FILE NO. 78-279136. • •9 -34- 4k CO o» ^f/ ll EXHIBIT D PERCENTAGE INTEREST TABLE I '.A a; O 00 05 •35- 8i N? 401 S-H Carisbad Airport Centre Exhibit E - Special Landscaped Areas CwitrB D«».lopment Wtonnw Ymwi. » AMoctales POUNPERsnnfico. zm FIRST ANEHDNEHT TO OECIASATION OF COVENANTS, CONDITIONS AND RESTRI Of CARLSBAO AIRPORT CENTRE 87 0480*0 r~~,r'QC0'JOFO ifi~"l <S8T JAH 28 PH 5 29 m THIS FIRST AHENDNENT dated Noveabar 1986, l. nada to the Declaration oC Covenant., Conditiona and Re.trictlona ofi Carlsbad Airport Centre, recorded September 12, 1986 as iocuaent number S6-4014S6 with the San Diego County Recorder* ("Declaration") pursuant to Section 11.6 of said Declaration by not less than 75% of the voting power of thc meaberahip ofi the Association. 1. Exhibit B is doleted and replaced by the Exhibit B attached hereto and incorporated herein by this reference. 2. Exhibit 0 is deleted and replaced by the Exhibit D attached hereto and incorporated herein by this reference. 3. Section 2.2.2 is deleted and replaced as followst "2.2.2 Common. Area. That portion of the Subject Property described on attached Exhibit B shall be 'Coaaon Area', which includes 'Coaaon Area Lets', title to which shall be held bv the Association as well as that portion of individual Lots which is designated on Exhibit B as Coanon Area for the nurpor*s of maintenance by the Association. No easenent, use or en-croachcent rights reserved by Declarant herein shall in any aanner hinder or interfere with the individual Lot own-ers' use of its Lot> including use of Coanon Area aaintained by the Associa-tion, within such Lot and no encroach- aent unto any Lot shall be allowed ex- cept for drainage usee. The Coaaon Area (which includes, without llaitation, the Coanon Area Lots and the improvenents thereon) shall be operated and aain- tained by the Association for tbe use and benefit ofi Owners ofi Units in the Project, subject to reasonable rules and ['.-.JUJ « V r •7 2022 regulations enacted according to the By-laws, dcept aa noted above and unless otherwise restricted* each Onit Owner aay use the Coaaon Area in accordance with the purposes for which it la intend- ed without hindering tha ezereis* oC ot encroaching upon the rights of any other Unit Owners. Declarant shall reserve and hereby reserves in itself aad its successors and assigns, as well as in the Association and in all other Owners, easeaents over and onto tha Coaaon Area and over and unto the individual hot* up to the exterior periaeter walls of each Building eleaent for drainage and for ingress to and egress froa the Coaaon Area and such portions of the individual Lots for the purpose of coapletlng iaproveaents thereon or for the parfora-ance of necessary aaintenancer landscap- ing, and repair work, provided such ingress and egress and drainage in no manner InterCeres with the use by any Unit Owner of its Lot or the iqprove-aents located thereon. Declarant shall also reserve and hereby reserves in itself and its suecessota and assigns^ for a five year period froa tht dat* or the initial reqiordation of this Declara-tion in the Official Records of thc San Diego County, CaHfornia Recorder* a right to reasonably alter or modify the sise and boundaries of the Phase I Comnon Area Lots or other Coaaon Area consistent with the proper developnent of the Property described on-attached Exhibits A, B and C." 4. Section 2.2.1 ia aodified by addition of the following at the end of the last sentence: "The above interpretation shall be used for the purpose of applying these declarations only and Cor no'other reason." following: Section 4.4.2 is deleted and replaced with the "4.4.2 any other charge reasonably designated as a special assessaent in thia Declaration, tha Article, or Bylawa." - 2 t7 // N? 048040 6. Section 4.5 is aodified by addition of the following parenthetical after the clause "... the cost of construction . . "(other than initial construction which is installed by Declarant)" 7. Section 4.IS is aodified by deletion of the word "first" as it twice appears in thc Section. 8. Section 6.1.1 is aodified by thc addition of thc following after the last sentencei "The above eaaeaenta ahall be liaited to areas within apecified easenent areas existing prior to transfer of the Onit Lot to a third party and in no event shall grant any party, including the Declarant, the right to establish new easeaents for any purpose across any Lot not owned by Declarant or the Association." 9. Section 6.2 is modified by addition of the following after the last sentencet "The above eaaements ahall be liaited to areaa within specified easeaent areas existing prior to transfer of thc Onit Lot to a third party and In no event shall grant any party. Including the Declarant, the right to establish new easements for any purpose scross any Lot not owned by Declarant or the Association." 10. Section 9.2.1 is nodlfl'Sd by addition ofi the following after the last sentence: "Reservation of easeaent rights to each' Owner ('Repaiiing Owner') for purposes of repair or reconstruction of its Unit ('Repaired Unit') onto any adjacent Unit ('Easement Unit') owned by another Owner ('Easenent Owner') shall be liaited so that it does not unreasonably interfere with aaid Easeaent Unit, or Easeaent Owner's use ofi its Lot and shall require such Repairing Owner to aake any repaira made necessary to the Easeaent Owner's Lot and Onit resulting firoa or by the Repairing Owner's use of aaid Easenent Unit." - 3 f . j .<r' 4 • 1 •7 // N9 048040 1 • ' 0 • A, 2024 11. Section 11.2 is aodified by addition of the fiollowingt "In no event shall this Section be deemed to create any contractural liability on any such Owner foe thc above acts.* 12. Section 11.7 is aodified by deletion of thc word "first* and deletion of thc parenthetical clause "(acaning a Hortgage with first priority over any other Hortgage}". In all other respects the Declaration is affiraed and continues in full fierce and effect. IH WITNESS NBEREOr, this First Aacndacnt has been executed by all the owners of thc Property described therein. Dated: / CARLSBAO AIRPCMtT CENTRE a California Liaited Partnership By COWOmm SSSOORCES CORPORATION a Nevada corporation, (;cncral Partner Bys 2L DEAN GREQii President } Dated: ,d.iuarv 15. 1967 OPUS SOUTHNBST CORPORATION a Minnesota corporation authorised to do business in the State of California as OPUS SOOTBNEST eeBtliilATTBU, DESICNBtS, BOILBBtS, DEVELOPERS, INC. By: CSESIOENI THIS DOCUMENT IS TO BE SIGNED BEFORE A NOTARY PUBLIC. PLEASE SIGN YOUR NAME EXACTLY AS IT IS TYPBHRITTEN. SFG:CAC 02(11:08:86 -I 17 G 202S STATE OF MINNESOTA) COUNTY OP HENNEPIN) ) ss. The foregoing was acknowledged befiore me this ISth day of January, 1987, by GENE HAUGLAND, President of Opus Southwest Corporation, a corporation under the laws of Minnesota, on behalf of the corporation. (SEAL) Nc^ry Bubllc (j CAT. NO. NNOWa* T02tM«C*l<-(ll (Corporaiion u * Vuxntt ol i l*:irtn<'rahip) STATE OK C.M.n OHM.X COUNTV OF San Disgo On January 27. 1987 ' founoERs Tiru componv iM icrr mc. ihc unikni|nc<i. j Notary l*ublic in and for Md Si«K. prrtunalK jppciml Dean Greenberg p<non«lly kira«n cu mc or proved to mc >in ihc bitis of utisfactoc) ciidriKe lu be the person uho executed the withm initrunK-nt « ihc Pre»:dent. ind la be the COI ________ |Hit.>njlly known to me ur proved to me on fhe bisit of sattfficior\' evidence peiv>r. uhu exeiuicl ijic within imttument a the ____^______^^__ Secre?>ry of inlty Reiourctf. Corporstlon t^hJ?y"''tarHh>«fTOj?trgitft(!W""""''''' _________ thc pmnenbip that executed the ttithin intinimcni. and acknimlcdied in mc that iuch corporation executed the ume as such partner and that such pannership lAccuted the tame. WITNFSS my hj/d and .jfficL.1 leal. Sif-iaiure my hafd and uffiCL.! leal. sJ6/?Jm/^^. 1^^ Thn irei Un offti iai mwartai tcslr 17 // 2 •o o 00 I i W X X 0) I-* •4 Carisbad Airport Centre EiiiMl B - Common Aiaaa hi," t of Area of Unit No. Building Lots 1 3.949 4.889% 2 • 6.155 7.614% 3 . 3.S15 4.348% 4 3.160 3.909% S 3.321 6 2.831 3.S02% 7 3.933 4.86S% 8 4.372 S.403% 9 Open Space — 10 7.648 9.461% 11 2.558 3.164% 12 3.848 4.760% 13 t 14 5.188 6.418% 15 3.334 4-.12 4% .16 Open Space . — 17 Open Space - 18 1.498 1.853% 19 1.442 1.784% 20 4.4S8 5.913% 21 4.308 5.329% 22 4.746 9.871% 23 4.732 9.894% 24 3.127 3.868% 25 2.713 3.396% Total Unit No. 80.836 GE. AC. (excluding open space and straats) • { :Am*>.i/mf Itttnau^MOnt Sana Ana CaMont *Z'M |miS4SX3t :tm<Hf. l90lO««««i*olSelma.«20l San Oaga CaUoM UUt iSlfllSlom EXHIBIT "D' - Page 1 of 5 «7 It MCSOCKT Hay 30, 1986 Land Piannino e Hiaside Design e CMI Snglnsering e Suneying Job No. 3080 CARLSBAO AIRPORT CENTRE ACREAGE ANALYSIS - UNIT NO. 2 Lot No. Gross Ac. % of Area ofi Unit No. 2 Buildinq Lota 28 3.103 7.714% 29 5.643 8.330% 30 2.193 3.314% 31 2.098 3.110% 32 3.910 3.304% 33 4.428 6.691% 34 2.993 4.323% 35 2.913 4.402% 36 5.903 8.316% 37 2.444 3.693% 38 2.281 3.447% 39 2.794 4.222% 40 3.892 3.881% •41-4.649 7.019% 42 2.879 4.344% 43 1.677 2.334% 44 1.930 2.312% 45 1.488 2.248% 46 1.946 2.336% 47 1.263 1.908% 48 2.198 3.261% 49 3.234 4.887% Total Unit No. 2 0.173 Gr. Ac. (excluding open space and streets) !t,mii.'/mm lit fto«licim Dm* SaM*/biL CMtixna IznS irMlW-SOn Mm>/lym isonA««nu(iilSc«net.i2C1 Sw 0(ga Cmtona niZI ((iMaSt-OMS EXHIBIT 'D* - Page 2 of 9 I t 87 // N? 048040 Nay 30, 1986 Lot No. 90 91 32 53 34 39 56 37 38 39 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 r . 2029 r land Planning e HBsUa Design e CMI Engkiesfing e Sutveying vRtmcaotHr Job No. 3080 CARLSBAO AIRPORT CENTRE ACREAGE ANALYSIS - UNIT NO. 3 Gross Ac. 2.382 2.910 4.049 1.862 2.394 1.988 1.643 2.119 2.080 3.583 2.662 Open Space 1.475 2,319 2.619 2.729 3.110 2.102 3.161 2.740 2.749 8.996 4.189 12.699 1.418 6.948 % of Area of Unit No. Buildinq Lots 3.079% 2.993% 4.823% 2.220% 2.894% 2.370% 1.939% 2i527% 2.480% 4.272% 3.174% i.799% 2.760% 3.118% 3.249% 3.708% 2.906% 3.769% 3.267% 3.278% 10.202% 4.990% 13.142% 1.691% 7.808% Total Unit No. 3 t 83.866 Gr. Ac. (excluding open space and streets) :Mtmtm.^mm III aoolMtow On«« Sai<a Ana. CaMom* WM (;MI$4S-303> .%m</iym ISOn AMnu* 01 Sewct. liOl San 0«<ia CaUoin* UU( (4l9l<SI-0n3 EXHIBIT 'O* - Page 3 of 5 I 17 20^ r land Planning e HWdde Oasign e CMI Enginaedng • Suiveying May 30, 1986 vKSMoracHr Job No. 3080 Lot No. CARLSBAO AIRPORT CENTRE ACREAGE ANALYSIS - UNITS 1. 2 t 3 Grosa Ae. % Of Area of Unlta 1.2 t 3 Buildinq Lots 1 3.949 1.710% 2 6.139 2.666% 3 3.313 1.922% 4 3.160 1.369% S 3.321 1.438% 6 2.831 1.226% 7 3.933 1.704% 8 4.372 1.894% 9 Open Space - 10 7.648 3.312% 11 2.538 1.108% 12 3.848 1.667% 13 £ 14 S.188 2.247% IS 3.334 1.444% 16 Open Space - •17 Open Space - 18 1.498 0.649% 19 1.442 0.624% 20 4.453 1.931% 21 4.308 1.866% 22 4.746 2.096% 23 4.732 2.050% 24 3.127 1.334% 23 2.713 1.173% 26 Open Space - 27 Open Space - 28 5.105 2.211% 29 5.645 2.443% 30 2.193 0.930* 31 2.058 0.891% 32 3.510 1.320% 33 4.428 1.918% 34 2.993 1.300% 33 2.913 1.262% 36 9.903 2.384t •37 2.444 1.0581 .'A«'/^ lilBmcWieMvOtv* San* ana. CaMnnt 9270S (naiS'iiOfln iS0nAMnu(M3cwne«.>»l San Owqa CaUom ni» 16NMSI 09» EXHIBIT 'D" - Page 4 of 5 4 87 N? 048040 • ! V.-' Paga 2 Xcrcaga Analysis May 30. 1986 tot No. Groaa Ac. % o£ Area of Units 1,2 I 3 Buildinq Lots 38 2.281 0.990% 39 2.794 1.210% 40 3.692 1.690% 41 4.643 2.012% 42 2.879 1.243% 43 1.677 0.726% 44 1.330 0.663% 43 1.488 9.644% 46 1.346 0.670% 47 1.263 0.347% 48 2.158 0.933% 49 3.234 1.401% SO 2.982 1.118% 51 2.910 1.087% 32 4.049 1.732% S3 1.862 0.806% 54 2.394 33 1.988 0.861% 36 1.643 0.712% 37 2.119 0.918% 58 2.080 0.901% 99 3.583 1.332% 99 3.583 60 2.662 1.193% 61 Open Space — 62 1.475 0.639% 63 2.315 1.003% 64 -:.61S 1.133% 65 2.725 1.180% 66 3.110 1.347% 67 2.102 0.910% 63 3.161 •1.369% 69 2.740 1.187% 70 2.749 1.191% 71 8.556 3.706% 72 4.185 1.813% 73 12.699 3.900% 74 1.418 0.614% 75 6.948 2.836% 76 Open Space Total Acreage: 230.877 Gr. Ac. (excluding opon space « streets) EXHIBIT "D" - Page 5 of 5 I i 8? // )IM6 REQUESTED BY; to J. KARwicK, ESQ. UECOROEO KAIL TO: AO AIRPORT CENTRE Mr. 9ean Creanbarg 'aloaar OaKa Nay, Suit* 300 >ad, Califomia 9200S 178 053 CT 30 W » 53 RF S AR 3 MGt DECURATION OF AaMOAfZOB Of PHASE Zl OF CARLSBAO AISPOR* CBMnOi FURSnAMT TO DECLARATION OF OOVSnURB. CONDITIONS AMD RESTRICTIONS, CARLSBAO URfOST SAH DIEGO COnWTY, CftUFOaMZR HIS DECLARATION OF ANNEXATION is made and antarad into thia ay of October, 1990 by CARLSBAD AIRPORT CENTRE, a California d partnership, hereinafter raiTerrad to aa "Declarant", nt to Section 2.4 of that certain Declaration of Covananta, ions and Restrictions, Carlsbad Airport Centra, San Dlego , Califomia as recorded in tha Official Racorda of aaid on January 28, 1987 as Instrument No. 87-048040, hareinaftar Hi to as the "Declaration". lEREAS, Declarant desires to annex that certain real :y as described in Exhibit "C" to tha Declaration and as >ts 26 through 49 inclusive of Cariabad Tract lit No. 2, in the City of Carlsbad, County^of^an Oiago, :ate of California, according to Map thereof No. 112SS,^ .led in the Office of the County Reooraef of ^ lunty, with Lots 33 and 34 of thd foregoing description >w also being described as Lot "A" of Adjustment Plat >. 395 executed by the City Engineer of tha City of irlsbad, dated January 31, 1990 and recorded March 5, 90, in the Office of the County Recorder of San Diago 'unty as Instrument No. 90-116039. Declaration of Annexation - Paga 1 179 all harainaftar rafarrad to aa tha "PhaM II Property", to that certain Project, aa tha term Project is dafinad in tha Declaration, to tha fiullaat axtant parmisaibla pursuant to Section 3.4.1 of tha Daelaratlon; and WHEREAS, Section 2.4.1.2 of the Declaration providaa for annexation by Declaration of Annexation and Section 3.4.1 furtbar provides that any such annexation shall cauaa tha property annexed to bacoM a portion of tha Project, to bacoaa subject in all raapacta to tha Declaration, and to becoaia subject in all raapaota to tha Aaaociiition, aa that term is defined in tha Daclaratlonf NOW, THEREFORE, in conaideratlon of tha praaiaaa and tha authority vested in tha undersigned Declarant undar tha Declaration: 1. The Declarant hereby annexes tha Phase II Property to tha Project, aubjacta and/or ra-aubjacts said Fhaaa II Property to tha Declaration, and further subjects aaid Phase II Property to tha full Jurladiction of tha Association (Cariabad Airport Centra Ownara Association). 2. The Declarant hereby reaffims all of tha provisions ofi tha Declaration as recorded and as such now affact tha Phase II Property. 3. Tha Declaration and each and avary tam, provision and condition tharaof, la hereby incorporated herein by this rafaranea. Rafaranca ahould ba aada to tha Declaration tor a coBq[>lata dlacription of the dedarationa, liaitationa, covenants, conditiona, raatrlctiona, and aaseaanta which affact and bacoM Declaration of Annexation - Paga 2 -. o f n f-'i burdana and/or benafita running with tha Phaaa II Property punuant barato. a WITNESS WifEREOF, the Declarant has hereunto aat Ita hand on tha day. and date first above written. CARLSBAO AIRPORT CENTRE, . * * a California liaited partnerahip, by Carlsbad Airport Associataa^ a Califomia general partnership which is its sole general partner, by Centre Developnent, a Califomia corporation, general partner of Carlsbad Airport Aaaoclataa reenberg, ( Dean Greenberg, President of Centra Devalopment STATE OP CALIFORNIA OOOWTT OF SAN DIEOO On this cAU'*^ day f>t PCntOl, in the year of 1990, before M, a Notary Public in and for aaid Cour.ty and State, personally appeared Oean Greenberg, known to (or proved to ce on the basis of satisfactory evidence) to be tha the person who executed the within instrument as president of cn.TSE DE\i:LOrMENT, a California corporation, who being by ae duly svcm. deposed, acknowledged and said: Said Dean Greenberg is tha Priesident of Centre Development, the corporation therein naaad, which executed same on behalf of CARLSBAD AIRPORT ASSOCIATES, tha parmership therein named as general partner of CARIfBAO AIRPORT CEN'TRI, that said CARLSBAD AIRPORT ASSOCIATES executed the saae as the sole general partner of CARLSBAD AIRPORT CENTRE, a Califomia liaited partnership, the partnership that executed the within instruaent and that said CARIABAD AIRPORT CENTRE executed tha WITNESS ay hand and official seal. (notary seal) 1.1.t Notary Public m am My cxjaaission expires; At(C>ui" ^3 for said County and State ...BARBARA S MARSOCN l^-^, Nwory PuMe^Caaaino P^-j, ---^ IAN OCCC COUNTV J Declaration of Annexation - Paga 3