Part Two
Creation & Maintenance of Community Standards

Article III  Use & Conduct Restrictions

  3.1    Imposition of Covenants Regarding Use & Conduct
  3.2    Residential Use
  3.3    Vehicle Parking, Storage, Maintenance & Repairs
  3.4    Use of Motorized Vehicles Within Common Area
  3.5    Storage of Flammable Fuels
  3.6    Pets & Other Animals
  3.7    Compliance With Applicable Laws, Etc.
  3.8    Foul or Obnoxious Odors
  3.9    Loud or Obnoxious Noises
  3.10  Unclean or Untidy Conditions
  3.11  Nuisances & Other Offensive Activities
  3.12  Burning of Trash, Etc.
  3.13  Disposal of Certain Materials
  3.14  Garbage Receptacles & Collection
  3.15  Use of Water Bodies
  3.16  Use of Firearms
  3.17  Wildlife
  3.18  Preservation of Environment
  3.19  Conduct of Business Activities

  3.20  Solicitations

  3.21  Time Shares, Etc.

  3.22  Leasing of Units

  3.23  Community Reserves

  3.24  Maya Artifacts

Article IV  Rules & Regulations

  4.1  Framework for Regulation
  4.2  Rule-Making Authority of Board
  4.3  Rule-Making Authority of Members
  4.4  Notice of Newly-Adopted Rules
  4.5  Relationship to Architectural Guidelines
  4.6  Owners’ Acknowledgment & Notice to Purchasers
  4.7  Limitations on Rule-Making Authority

Article V  Architectural, Building Guidelines & Landscaping Restrictions

  5.1    Imposition of Covenants Regarding Architecture & Landscaping
  5.2    Compliance With Laws, Etc.
  5.3    Dumping, Burning or Burying of Materials
  5.4    Subdivision of Units

  5.5    Combination of Units
  5.6    Mobile Homes
  5.7    Conversion of Garages
  5.8    Foul & Obnoxious Odors
  5.9    Nuisances, Etc.
  5.10  Fences, Walls, Etc.
  5.11  Drainage
  5.12  Exterior Antennas, Etc.
  5.13  Dilapidated Structures, Etc.
  5.14  Irrigation
  5.15  Miscellaneous Exterior Accessories
  5.16  Relationship to Guidelines & Rules

  5.17  Community Systems

Article VI  Architectural Review & Architectural & Building Guidelines

  6.1    Approval of Improvements Required
  6.2    Architectural Review by Declarant
  6.3    Review by Architectural Review Committee
  6.4    Architectural Review Fees
  6.5    Architectural Guidelines
  6.6    Architectural Review Procedures
  6.7    Time & Notice of Decisions
  6.8    Construction to be Diligently Pursued
  6.9    No Waiver of Future Approvals
  6.10  Variances
  6.11  No Liability for Approved Plans
  6.12  Certificate of Architectural Compliance

  6.13  Establishment of the Architectural Review Board (“ARB”)

  6.14  Definitions for ARB Procedures

  6.15  ARB Meetings

  6.16  Construction Restrictions

  6.17  Limitation of Liability

  6.18  Easement Releases

  6.19  Plan Preparation

  6.20  Unit Use

  6.21  Review

  6.22  Fines

  6.23  Procedures for Submission of an Application

  6.24  Review Criteria

  6.25  Survey

  6.26  Site Plan

  6.27  Architectural Plans

  6.28  ARB Agreements

Article VII  Maintenance, Repair & Replacement

  7.1  Maintenance of Units
  7.2  Maintenance of Neighborhood Property
  7.3  Repair & Replacement of Unit Improvements
  7.4  Repair & Replacement of Common Area Improvements

Part Three
Community Governance & Administration

Article VIII  Association & Members

  8.1  Purposes of Association
  8.2  Membership
  8.3  Classes of Membership
  8.4  Exercise of Voting Rights
  8.5  Neighborhoods, Voting Members & Voting Groups

Article IX  Association Powers & Responsibilities

  9.1    Acquisition of Property by Board of Directors
  9.2    Conveyance of Property to Association by Declarant
  9.3    Regulation of Common Area
  9.4    Maintenance of Area of Common Responsibility
  9.5    Required Insurance Coverages
  9.6    Insurance Policy Requirements
  9.7    Restoration of Improvements After Casualty
  9.8    Enforcement of Community Documents
  9.9    Board of Directors’ Discretion to Take Action
  9.10  Implied Rights; Board Authority
  9.11  Indemnification of Directors, Officers & Others
  9.12  Responsibility for Personal Safety & Security
  9.13  Association Powers Regarding Neighborhood Associations
  9.14  Additional Services Provided by Association
  9.15  Relationships with Other Properties
  9.16  Facilities & Services May be Opened to Public

Article X  Association Finances

  10.1    Budgeting for Common Expenses
  10.2    Budgeting for Reserves
  10.3    Budgeting for Neighborhood Expenses
  10.4    Covenant to Pay Assessments
  10.5    Authority to Levy General Assessments
  10.6    Authority to Levy Special Assessments and Capital Improvement Assessments
  10.7    Authority to Levy Specific Unit Assessments
  10.8    Time for Payment of Assessments
  10.9    Personal Obligation to Pay Assessments
  10.10  Lien Securing Payment of Assessments
  10.11  No Abatement or Set-Off Applicable to Assessments
  10.12  Certificate Regarding Payment Status of Assessments
  10.13  Declarant’s Exemption from Assessment Obligations and Option to Fund Budget Deficits
  10.14  Property Exempt from Assessments
  10.15  Capitalization of Association
  10.16  Community Enhancement/Transfer Fee

Part Four
Community Development

Article XI  Additional Reserved Rights of Declarant

  11.1    Right to Withdraw Land From Community
  11.2    Right to Conduct Marketing & Sales Activities
  11.3    Right to Develop
  11.4    Right to Approve Additional Covenants
  11.5    Right to Approve Changes in Community Standards
  11.6    Right to Assign Declarant Rights
  11.7    Right to Use Community Name
  11.8    Easement to Inspect & Right to Correct
  11.9    Right to Notice of Design or Construction Claims
  11.10  Termination of Reserved Rights

Part Five
Property Rights Within the Community

Article XII  Easements

  12.1  Easements in Common Area
  12.2  Easements for Encroachments
  12.3  Easements for Utilities, Etc.
  12.4  Easements for Maintenance, Emergency & Enforcement
  12.5  Easements for River, Lagoon, Lake, Creek & Pond Maintenance & Flood Water
  12.6  Easement to Inspect & Right to Correct
  12.7  Easement Holder’s Consent Required to Terminate

Article XIII  Limited Common Areas

  13.1  Purposes of Limited Common Areas
  13.2  Designation of Limited Common Areas
  13.3  Use of Limited Areas by Others

Article XIV  Party Walls & Other Shared Structures

  14.1  General Rules of Law to Apply
  14.2  Maintenance; Damage & Destruction

Part Six
Relationships Within & Outside the Community

Article XV  Dispute Resolution & Limitations on Litigation

15.1            Covenant to Encourage Dispute Resolution Without Litigation

15.2            Claims to be Resolved

15.3            Dispute Resolution Procedures

15.4            Initiation of Litigation by Association

15.5            Venue and Jurisdiction

Article XVI  Provisions for Benefit of Chargees

  16.1  Notices of Occurrences
  16.2  Other Protections for First-Priority Lien Holders
  16.3  Limitations on Ability to Amend Documents
  16.4  No Priority to Condemnation or Insurance Proceeds
  16.5  Notice to Association of Charge
  16.6  Construction of Article XVII

 

(a)           “General Assessment” means the Assessment levied on all Units subject to Assessments pursuant to Section 10.4, in order to fund the Common Expenses for the general benefit of all Units pursuant to Section 10.1.

                (b)           “Special Assessment” means an Assessment levied on all Units subject to Assessments pursuant to Section 10.6, in order to fund capital improvements for the benefit all Units or emergency expenses of the Association pursuant to Section 10.1.

                (c)           “Specific Unit Assessment” means an Assessment levied on one or more, but fewer than all Units, in order to fund expenses incurred for the particular benefit of, or because of the acts or omissions of, the Owner or Owners of such particular Unit or Units pursuant to Section 10.6.

                (d)           “Neighborhood Assessment” means an Assessment levied against the Units in a particular Neighborhood, or Neighborhoods to fund Neighborhood Expenses, as more particularly described in Section 10.7.

                2.6           “Association” means Los Arboles Community Association Limited, a Belize  corporation, and its successors or assigns.  The Association shall hold title to the Common Area, and is vested with the authority to operate and maintain the Area of Common Responsibility, to maintain, repair and replace the improvements constructed or installed thereon, to administer the Community, and to enforce the provisions of this Declaration and the other Community Documents.

                2.7           “Board of Directors” (or the “Board”) means the governing body responsible for the administration of the Association, selected as provided in the Articles and the Memorandum of Association, and generally serving the same role as a board of directors under the corporate law of Belize.  “Director” means an individual member of the Board.

                2.8           “Builder” means any Person or Entity who purchases one or more Units for the purpose of constructing residential improvements for later resale to one or more consumers, or who purchases one or more parcels of land within the Community for further subdivision, development or resale in the ordinary course of such Builder’s business.  Any Person or Entity who occupies or leases a Unit for residential purposes shall immediately cease to be a “Builder” with respect to the Unit so occupied or leased, notwithstanding that such Person or Entity originally purchased the Units for the purpose of constructing residential improvements for later resale to consumers.

                2.9           “Charge” means a mortgage, charge, a deed of trust, a deed to secure debt, or any other form of security instrument encumbering title to any Unit.

                2.10         “Chargee” means mortgagee, the holder or beneficiary of a Charge.

2.11         “Common Area” means all real property, including easements, including those improvements constructed or installed thereon, which the Association owns, leases, or in which it otherwise holds possessory or use rights for the common use and enjoyment of the Owners.  As used in this Declaration, the term shall include the Limited Common Area, as defined and described in Section 2.22, unless specifically excluded.

                2.12         “Common Expenses” means the actual and estimated expenses incurred, or anticipated to be incurred, by the Association for the general benefit of all Owners, including any reasonable Reserves, as the Board may find or deem necessary and appropriate pursuant to the Community Documents.  The Common Expenses shall not include any expenses incurred for the initial development or other costs of constructing or installing the original subdivision improvements within the Community, unless Voting Members representing a majority of the total Class “A” votes approve. 

                2.13         “Community” means the land described in Exhibit A, as may be subjected to this Declaration.

                2.14         “Community Documents” means, collectively, this Declaration and any Supplemental Declaration, the Plat and/or Master Plan, the Articles of Association, the Memorandum of Association, the Rules & Regulations, the Architectural Guidelines, and the Resolutions of general application duly adopted by the Board of Directors, as they all may be amended from time to time.

                2.15         “Community-Wide Standard” means the standard of conduct, maintenance, or other activity generally prevailing within the Community, or the minimum standards established pursuant to this Declaration, the Architectural Guidelines, the Rules & Regulations, and the Resolutions of general application duly adopted by the Board of Directors, whichever is the highest standard.  Declarant shall initially establish the Community-Wide Standard, and it may contain both objective and subjective elements.  The Community-Wide Standard may evolve as development progresses and as the needs and desires of the Owners change, but in no event may a change in custom serve to amend this Declaration or any of the Community Documents.

                2.16         “Covenant to Share Costs” means the Declaration of Easements and Covenant to Share Costs that Declarant has executed and recorded.  The Covenant to Share Costs grants or declares easements for the benefit of the Association and/or the present and future owners of the subject land, and provides for the sharing of the costs of maintaining property described therein.

                2.17         “Declarant” means Los Arboles Limited, a Belize corporation, or any successor or assign who takes title to any portion of the land described in Exhibit A for the purpose of developing and selling such land and who is designated as a “successor Declarant” in an instrument that is executed and recorded by the immediately preceding Declarant; provided, however, that there shall never be more than one “Declarant” at any time.

                2.18         “Declarant Control Period” means the period of time during which Declarant is entitled to appoint a majority of the members of the Board of Directors as provided in Section 10, Article 11 of this Declaration.  The Declarant Control Period shall terminate on the first to occur of the following events:

                (a)           when certificates of occupancy have been issued for the Homes constructed within ninety percent (90%) of the total number of Units permitted by the Master Plan for the land described in Exhibit A and such Units have been conveyed to Class “A” Members other than the Builders;

                (b)           December 31, 2015; or

                (c)           when, in its discretion, the Class “B” Member so determines.

                2.19         “Declaration” means this Declaration of Covenants, Conditions, Restrictions, Easements & Building Guidelines for Los Arboles as recorded in the Public Records of Belize, and as it may be amended from time to time.  This Declaration creates obligations that are binding upon Declarant, the Association and all present and future Owners.

                2.20         “Entity” means any corporation, partnership, limited liability company, or any other legally created and validly existing entity.

                2.21         “Home” means the permanent improvements constructed within a Unit or Homesite for the purposes of providing a single-family residential dwelling to the Owner and/or other occupants of such Home.

                2.22         “Limited Common Area” means a portion of the Common Area set aside for the exclusive use and primary benefit of one or more, but less than all, Owners or Neighborhoods, as the case may be, as more particularly described in Article XIII.

                2.23         “Master Plan” means the land use plan for the development of the Community prepared by Declarant, and approved or to be approved by the Government of Belize, including, for example, the Ministry of Natural Resources, and as it may be amended from time to time.  The Master Plan includes all of the land described in Exhibit A.

                2.24         “Member” means a Person or Entity subject to mandatory membership in the Association pursuant to Section 8.2.  Pursuant to Section 8.3, there shall initially be two classes of Members: (a) the “Class ‘A’ Members,” who shall include all Owners other than Declarant; and (b) the “Class ‘B’ Member,” or Declarant.

                2.25         “Memorandum of Association” means the Memorandum of Association of Los Arboles Community Association Limited, as it may be amended from time to time.  The Memorandum of Association governs the Association’s internal affairs, including, without limitation, the procedures for voting, elections, and meetings.  A copy of the initial Memorandum of Association, as adopted by Declarant, is attached to this Declaration as Exhibit C.

                2.26         “Neighborhood” means a group of Units designated, pursuant to Section 8.5, as a separate “Neighborhood” within the Community for one or more of the following purposes: sharing the use and enjoyment of a designated Limited Common Area; or receiving other benefits or services from the Association that are not provided to all Units; or electing Voting Members.  A Neighborhood may be comprised of more than one type of Home, and may include non-contiguous parcels of land.  If the Association provides benefits or services to fewer than all Units within a particular Neighborhood, then the benefited Units shall constitute a sub-Neighborhood for purposes of determining and levying Neighborhood Assessments for such benefits or services.  Where the context permits or requires, the term Neighborhood shall also refer to the Neighborhood Committee, as established in accordance with the Memorandum of Association, or the Neighborhood Association, if any, having concurrent jurisdiction over the land within the Neighborhood.  Neighborhood boundaries may be established and modified as provided in Section 8.5.

                2.27         “Neighborhood Association” means a strata-title association and/or other property owners association, if any, having jurisdiction over any Neighborhood concurrent with, but subordinate to, the jurisdiction of the Association.  Nothing in this Declaration shall be construed to require the creation of any Neighborhood Association.

                2.28         “Neighborhood Expenses” means the actual and estimated expenses, which the Association incurs or expects to incur for the benefit of the Owners of the Units within a particular Neighborhood or Neighborhoods.  Neighborhood Expenses may include a reasonable Reserve for capital repairs and replacements, and a reasonable administrative charge, as may be authorized pursuant to this Declaration or in the Supplemental Declaration applicable to such Neighborhood or Neighborhoods.

                2.29         “Officer” means one of the Persons selected by the Board of Directors, in accordance with the Memorandum of Association, to administer the day-to-day affairs of the Association.

                2.30         “Owner” means, collectively, the Persons or Persons who, and/or the Entity or Entities that, hold record fee-simple title to any Unit, but excludes any Person or Entity that holds an interest in a Unit merely as security for the performance of an obligation.  The present holder of a record life estate in any Unit shall be deemed to be the Owner of such Unit during the term of the life estate.  If a Unit is sold under a recorded installment land sales contract, contract for deed or similar contractual arrangement, and such contract specifically so provides, the contract purchaser (rather than the fee owner) shall be considered the Owner.

                2.31         “Person” means a natural person, including a trustee or other fiduciary acting on behalf of a Person or Persons who are the beneficiaries or equitable owners under a trust or similar arrangement.

                2.32         “Plat” means the recorded subdivision plat (or plats), approved by the Government of Belize, that subdivides the land subject to this Declaration and thereby creates the Units, Common Area, and Public Streets within the Community.  The Plat may set forth restrictions, easements or other provisions in addition to those set forth in this Declaration.  As used in this Declaration, the term “Plat” may include a recorded strata plot plan creating strata title units within the Community.

                2.33         “Public Streets” means and includes those streets and roads, as set forth on the Plat and/or Master Plan, as well as related improvements, constructed or installed within the rights-of-way dedicated to the Government of Belize.

                2.34         The uncapitalized terms “record,” “recording,” and “recorded,” as used in this Declaration and the other Community Documents, shall refer to the filing of a legal instrument, executed with all of the formalities required of a deed, in the Public Records of Belize, or such other records of the Government of Belize as may be designated as the appropriate location for the recording of subdivision plats and similar documents affecting title to real estate, as applicable.

                2.35         “Reserves” means those funds set aside and reserved for capital repair and replacements of the improvements constructed or installed within the Common Area and the Area of Common Responsibility (to the extent that the Association has assumed or been assigned the responsibility for such repairs and replacements to the improvements within the Area of Common Responsibility).

                2.36         “Resolution” means a resolution duly adopted by the Board of Directors, at any time and from time to time, in accordance with this Declaration, the Articles of Association and the Memorandum of Association.  A Resolution of general application may establish policies and procedures for the internal governance and activities of the Association, regulate the operation and use of the Common Area, or amend, replace or repeal any Resolution previously adopted.

                2.37         “Rules & Regulations” (or the “Rules”) means the Rules & Regulations of the Community, as they may be amended from time to time pursuant to Article IV.  The Rules regulate the use of the Units, the Common Area and the Area of Common Responsibility in the interests of the health, safety and welfare of the Owners.  A copy of the initial Rules & Regulations, as promulgated by Declarant, is attached hereto as Exhibit D.

                2.38         “Supplemental Declaration” means an instrument recorded in the public records of Belize, which may grant or declare easements, and impose additional obligations or restrictions upon the Community; or designate Neighborhoods, and may also refer to an instrument executed and recorded by Declarant to designate Voting Groups pursuant to Section 8.5(c).

                2.39         “Unit” means a portion of the Community, whether improved or unimproved, which may be separately owned and is intended for development, use and occupancy as an attached or detached residence for a single family.  The term shall include the land, if any, which is part of the Unit as well as any improvements constructed or installed thereon.  In the case of a strata-title unit such as a condominium, townhouse, carriage-home, or similar structure containing multiple dwellings, each dwelling shall be deemed to be a separate Unit.

                Units may be combined or further subdivided, and boundary lines of Units may be changed, only by the recording of a Plat or other legal instrument further subdividing or re-subdividing the parcel of property (which subdivision shall be subject to such other restrictions as may be set forth in this Declaration or rules of the Association).  Absent the recording of such a plat or other legal instrument, ownership of adjacent Units by the same Owner shall not permit such Units to be treated as a single Unit for purposes of voting and Assessments, notwithstanding that such Units may be improved by constructing a single dwelling thereon.  Notwithstanding anything contained herein to the contrary, Declarant or its approved designees may subdivide a parcel or Unit.

                2.40         “Voting Group” means one or more Voting Members who vote on a common slate for election of the Directors, as more particularly described in Section 8.5(c), or, if the context so indicates, the group of Members whose Units are represented by such Voting Members.

                2.41         “Voting Member” means the representative selected by the Class “A” Members within each Neighborhood pursuant to Section 8.5(b) to cast the Class “A” votes attributable to their Units on all matters requiring a vote of the membership (except as otherwise specifically provided in this Declaration and in the Memorandum of Association).  The term “Voting Member” shall also refer to alternate Voting Members acting in the absence of the Voting Member and any Owners authorized personally to cast the votes for their respective Units pursuant to Section 8.5(b).

Part Two
Creation & Maintenance of Community-Wide Standards

                This Declaration declares certain restrictions regarding conduct, use, maintenance, architecture, landscaping and other matters within the Community, and establishes procedures for adopting, modifying, applying, and enforcing such standards while providing the flexibility for the Community-Wide Standards to evolve as the Community changes and grows over time.  The Community-Wide Standards for conduct, use, maintenance, architecture, landscaping and other matters within the Community are what embodies the Community’s identity and makes it a place that people want to call “home,” and every Owner and occupant of a Unit may take pride in upholding such standards and in the results of that common effort.

Article III
Use & Conduct Restrictions

                3.1           Imposition of Covenants Regarding Use & Conduct.  Declarant, for itself and for its successors-in-title to all land within the Community, hereby covenants and agrees that such land shall be subject to the restrictive covenants regarding the use of land and the conduct of Persons or Entities set forth in this Article III, as well as the Rules & Regulations adopted pursuant hereto, and hereby declares that the Association is authorized to enforce such covenants and Rules pursuant to this Declaration and the other Community Documents.  Every Owner of land within the Community, by its acceptance of a deed or other instrument conveying title to such land, shall be deemed to have covenanted and agreed to comply with such covenants and Rules or the sanctions imposed by the Association for failure to comply therewith.

                3.2           Residential Use.  No one may use any Unit for any purpose other than the construction and occupation of an attached or detached Home, except as otherwise expressly provided in this Declaration and with respect to those parcels designated on the Master Plan as a commercial parcel.

                3.3           Vehicle Parking, Storage, Maintenance & Repairs.  The parking, storage, maintenance and repair of all vehicles within the Community shall be subject to the following restrictions:

                (a)           Parking Generally.  Every Owner and other occupant of a Unit shall park their vehicles completely within such Unit’s garage, carport or driveway when not in use or on the Public Streets, as permitted by the Community Documents.  No one may park their vehicle elsewhere within the Community, including, but not limited to, within the rights of way of the Public Streets, within the Common Area (except in Common Area parking areas designated for such purpose), or elsewhere within any Unit (except within such Unit’s garage, carport or driveway).

                (b)           Inoperable Vehicles.  No one may park any inoperable vehicle, or any vehicle that lacks a current operating license or registration, anywhere within the Community, except completely within a Unit’s garage or carport.

                (c)           Commercial & Service Vehicles.  Service and delivery vehicles may be parked within the driveway of a Unit or the designated parking areas within the Common Area, during daylight hours, for such period of time as is reasonably necessary to provide service or to make a delivery to a Unit or the Common Area.  The Owner or other occupant of a Unit may park a business or commercial pickup, or similar van or light truck, within the driveway of Unit, overnight, provided such business or commercial vehicle is also such Owner’s principal means of private transportation.  No one may otherwise park any commercial vehicle anywhere within the Community except on the portions of the Community where commercial use is  considered permissible, as reflected on the Master Plan.

                (d)           Construction Vehicles & Equipment.  No one may park any construction or farm vehicle or equipment anywhere within the Community; provided, however, that construction vehicles and equipment may be parked within a Unit or the Common Area during the construction or installation of improvements thereon, as is reasonably necessary to complete such improvements; provided further, farm vehicles may be parked in ARB approved commercial areas.

                (e)           Recreational Vehicles, Etc.  No one may park any recreational vehicle, including, without limitation, travel trailers, mobile homes, towed campers, trucks with mounted campers, and all similar vehicles, anywhere within the Community; provided, however, that the Owner or other occupant of a Unit may park a recreational vehicle on the driveway of a Unit for no more than a fourteen (14) consecutive day period but only if a Home is fully constructed on said Unit, exclusively for the purposes of loading and unloading such vehicle.  No one may sleep or otherwise reside in a recreational vehicle while it is present within or upon a Unit.

                (f)            Boats & Other Watercraft.  No one may park any boat or other watercraft or their trailers anywhere within the Community, except that the Owner or other occupant of a Unit may park a boat or other watercraft and its trailer completely within such Unit’s garage or carport.  No one may sleep or otherwise reside in a boat or other watercraft while it is present within or upon a Unit.

                (g)           Vehicle Maintenance & Repairs.  No one may perform vehicle maintenance or repairs anywhere within the Community, except that the Owner or other occupant of a Unit may perform such maintenance or repairs within such Unit’s garage or carport, after taking necessary and appropriate precautions for ventilation.

The Association may adopt Rules & Regulations that further regulate vehicle parking, or that provide temporary exceptions for vehicle parking for special occasions (such as parties, receptions and other short-term social functions); provided, however, that the Association shall make no exception for overnight parking within the right of way of any of the Public Streets.  The Board of Directors, or its designee, may cause any vehicle that is parked in violation of this Section 3.3, or the Rules adopted pursuant hereto, to be towed and removed from the Community, all at the Owner’s or occupant’s cost and expense.

                3.4           Use of Motorized Vehicles within Common Area.  No one may park or operate a motorized vehicle on the pathways or trails owned or maintained by the Association.

                3.5           Storage of Flammable Fuels, Etc.  Except on those Units designated Commercial Units, no one may store gasoline, heating oil, or other flammable fuels or liquids within the Community; provided, however, that the Owner or occupants of a Unit may store a reasonable amount of fuel within the garage of the Unit for emergency purposes and the operation of gas grills, lawn mowers and similar tools or equipment, not to exceed five (5) gallons.  The Association may store fuel for the operation of maintenance vehicles, generators, and similar equipment. This covenant shall not apply to any underground fuel storage tank authorized pursuant to Article IV.

                3.6           Pets & Other Animals.  Owner(s) or other occupants of a Unit may keep a reasonable number of dogs, cats, horses, or other usual and common household pets within such Unit.  No one shall permit any pet, animal, or livestock to roam free, make objectionable noise, or endanger the health or safety of, or constitute a nuisance or inconvenience to, the Owners or other occupants of other Units.  Any pet that violates this Section 3.6, in the sole discretion of the Board of Directors, shall be removed from the Unit and the Community upon the Board’s request.  If the owner of such pet fails to honor such request, the Board may cause the pet to be removed from the Unit and the Community, and all costs and expenses of such removal shall be the responsibility of the Unit Owner.  Pet owners shall keep their dogs on a leash, or otherwise confined in a manner acceptable to the Board, whenever their dogs are present outside their Homes.  All pets shall be registered, licensed and inoculated as required by applicable laws, codes and ordinances.  The Association may adopt Rules & Regulations that further regulate the keeping of pets within the Community, including, but not limited to, the restriction of the number of animals that may be kept within a Unit, the prohibition of certain species or breeds, and the regulation or prohibition of pet activities within the Common Area.

                Every pet owner shall be strictly responsible for the behavior of such owner’s pet, including, for example, any damage to property or injury to Persons caused by such pet, and shall indemnify, defend and hold Declarant, the Association and every other Owner or occupant of a Unit completely free and harmless from and against any and all damage or injury caused by such pet.

                3.7           Compliance with Applicable Laws, Etc.  No one shall engage in any activity within the Community that violates any applicable any law, ordinance or regulation of Belize, as they may be amended from time to time; provided, however, that the Association shall have no obligation to enforce any such law, ordinance or regulation in the event of a violation.

                3.8           Foul or Obnoxious Odors.  No one shall engage in any activity within the Community that emits foul or obnoxious odors or creates noise or other conditions, which tends to disturb the peace or threaten the safety of the Owners or other occupants of other Units.  The Association may adopt Rules & Regulations that further regulate such activities that tend to cause foul or obnoxious odors, including, but not limited to, further restricting or prohibiting certain specified activities.

                3.9           Loud or Obnoxious Noises.  No one shall use or discharge any radio, loudspeaker, horn, whistle, bell, or other sound device so as to be audible to the Owners or other occupants of other Units, except alarm devices used exclusively for security purposes.  The Association may adopt Rules & Regulations that further regulate such activities that tend to cause loud or obnoxious noises, including, but not limited to, further restricting or prohibiting certain specified activities.

                3.10         Unclean or Untidy Conditions.  No one may pursue any hobby or engage in any other activity that tends to cause an unclean, unhealthy, or untidy condition to exist outside of the enclosed structures within a Unit.  The Association may adopt Rules & Regulations that further regulate such activities that tend to cause unclean, unhealthy or untidy conditions, including, but not limited to, further restricting or prohibiting certain specified activities.

                3.11         Nuisances & Other Offensive Activities.  No one may engage in any noxious or offensive activity that, in the reasonable determination of the Board of Directors, tends to cause embarrassment, discomfort, annoyance or nuisance to the Owners or occupants of the Units.  The Association may adopt Rules & Regulations that further regulate such activities, including, but not limited to, further restricting or prohibiting certain specified activities.

                3.12         Burning of Trash, Etc.  No one may engage in the burning of trash, leaves, debris or other materials; provided, however, that Declarant, a Builder, or other contractor may engage in such burning during the normal course of constructing or installing improvements within a Unit or the Common Area.  The Board of Directors, or the Architectural Review Board, as applicable, may adopt Rules & Regulations, or Architectural Guidelines, that further regulate such activities, including, but not limited to, the time, place and manner of such burning.

                3.13         Disposal of Certain Materials.  No one may dump grass clippings, leaves or other debris, petroleum products, fertilizers, or other potentially hazardous or toxic substances in any drainage ditch, stream, creek or river, or elsewhere within the Community; provided, however, that fertilizers may be applied to landscaping within the Units or the Common Area, provided care is taken to minimize the run-off therefrom.

                3.14         Garbage Receptacles & Collection.  No one may deposit, accumulate or keep garbage, recycling materials or yard refuse within a Unit or anywhere else within the Community, except in closed, sanitary receptacles or recycling bins between the regular collection times of such garbage, recycling materials or yard refuse.  The Association may adopt Rules & Regulations that further regulate the storage and collection of garbage, recycling materials and yard refuse, including, but not limited to, prescribing collection times, the type of receptacles to be used, and the proper storage of such receptacles between regular collection times.

                3.15         Use of Water Bodies.  The Association shall not be responsible for any loss, damage, or injury to any Person or property arising out of the authorized or unauthorized use of rivers, lakes, ponds, creeks, streams or other bodies of water within or adjacent to the Community.  The Association may adopt Rules & Regulations that further regulate such water-related activities, including, but not limited to, further restricting or prohibiting certain specified activities.  NEITHER DECLARANT, ASSOCIATION NOR ANY OF THEIR OFFICERS, DIRECTORS, COMMITTEE MEMBERS, EMPLOYEES, MANAGEMENT AGENTS, CONTRACTORS OR SUBCONTRACTORS (COLLECTIVELY, THE “LISTED PARTIES”) SHALL BE LIABLE OR RESPONSIBLE FOR MAINTAINING OR ASSURING THE SAFETY, WATER QUALITY OR WATER LEVEL OF/IN ANY RIVER, LAGOON, LAKE, POND, CANAL, CREEK, STREAM, OR OTHER WATER BODY WITHIN THE COMMUNITY, EXCEPT AS SUCH RESPONSIBILITY MAY BE SPECIFICALLY IMPOSED BY, OR CONTRACTED FOR WITH, AN APPLICABLE GOVERNMENTAL OR QUASI-GOVERNMENTAL AGENCY OR AUTHORITY.  FURTHER, NONE OF THE LISTED PARTIES SHALL BE LIABLE FOR ANY PROPERTY DAMAGE, PERSONAL INJURY, OR DEATH OCCURRING IN, OR OTHERWISE RELATED TO, ANY WATER BODY, ALL PERSONS USING SAME SHALL BE DOING SO AT THEIR OWN RISK.

ALL OWNERS AND OCCUPANTS OF ANY PORTION OF THE COMMUNITY LOCATED ADJACENT TO OR HAVING A VIEW OF ANY OF THE AFORESAID WATER BODIES, INCLUDING, FOR EXAMPLE, THE RIVER OR LAGOON, SHALL BE DEEMED, BY VIRTUE OF THEIR ACCEPTANCE OF THE DEED TO OR USE OF, SUCH UNIT, TO HAVE AGREED TO RELEASE THE LISTED PARTIES FROM ALL CLAIMS FOR ANY AND ALL CHANGES IN THE QUALITY AND LEVEL OF THE WATER IN SUCH BODIES.

ALL PERSONS ARE HEREBY NOTIFIED FROM TIME TO TIME WILDLIFE MAY HABITAT ON OR ENTER INTO WATER BODIES WITHIN OR NEARBY THE PROPERTIES AND MAY POSE A THREAT TO PERSONS, PETS AND PROPERTY, BUT THAT THE LISTED PARTIES ARE UNDER NO DUTY TO PROTECT YOU AGAINST AND DO NOT IN ANY MANNER WARRANT OR INSURE AGAINST ANY DEATH, INJURY OR DAMAGE CAUSED BY SUCH WILDLIFE.

                3.16         Use of Firearms.  No one may discharge any firearm, crossbow or similar weapon within the Community; provided, however, that the Association shall have no obligation to prevent or stop such discharges.

                3.17         Wildlife.  No one may capture, trap, or kill any wildlife within the Community, except as expressly approved by the Board of Directors, and as necessary to preserve the health, safety and welfare of residents of the Community.

                3.18         Preservation of Environment.  No one may engage in any activity that materially disturbs or destroys the vegetation, wildlife, wetlands, or air quality within the Community, uses excessive amounts of water, or results in unreasonable levels of sound or light pollution.

                3.19         Conduct of Business Activities.  Except on those Units designed on the Master Plan as Commercial Units, no one may engage in any business, trade, garage sale, moving sale, rummage sale, or similar activity within the Community; provided, however, that the Owner or other occupant of a Unit may maintain and use a “home office” within the Unit provided that such business activity: (i) is not apparent or detectable by sight, sound, or smell from outside the Unit; (ii) conforms to all zoning and other land use requirements of Belize or any other governmental body having jurisdiction over the Community; (iii) does not involve door-to-door solicitation of the Owners or occupants of any Unit; (iv) does not, in the reasonable judgment of the Board of Directors, generate a level of vehicular or pedestrian traffic or a number of vehicles being parked within the Community which is noticeably greater than that which is typical of Units in which no home office is maintained; and (v) is consistent with the residential character of the Community and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Community, as may be determined in the Board’s sole discretion.  The terms “business” and “trade,” as used in this Section 3.19, shall be construed to have their ordinary, generally accepted meanings and shall include, without limitation, any occupation, work, or activity undertaken on an on-going basis which involves the provision of goods or services for which the provider receives a fee, compensation, or other form of consideration, regardless of whether such activity: (i) is engaged in full or part-time; (ii) is intended to be for-profit or not-for-profit; or (iii) requires a license.  The leasing of a Unit shall not be considered a business or trade within the meaning of this Section 3.19.  This Section 3.19 shall not apply to any activity conducted by Declarant, or a Builder approved by Declarant, including, but not limited to, the sale or lease of any Unit(s) that Declarant or a Builder owns, the operation of a timeshare or similar program, or related marketing and sales activities.

                3.20         Solicitations.  No one may engage in commercial or charitable door-to-door solicitations within the Community; provided, however, that the Board of Directors may permit charitable organizations to conduct such solicitations, as approved in writing.  The Association may adopt Rules & Regulations that further regulate solicitation activities, including, but not limited to, prescribing the time, place and manner of solicitations, and identifying certain charitable organizations that may solicit contributions within the Community.

                3.21         Time Shares, Etc.  No one may use any Unit for the operation of a time-sharing, fraction-sharing, or similar program whereby the right to the exclusive use of the Unit rotates among participants in the program on a fixed or floating time schedule over a period of years; provided, however, that Declarant, or its assigns, may operate such a program with respect to Units which it, or its assigns, owns.

                3.22         Leasing of Units.  The Owner of a Unit may lease such Unit for residential purposes only.  Every lease of a Unit shall be in writing, shall transfer possession of the entire Unit and not a portion or portions thereof, and shall require the lessee and other occupants of the Unit to comply with the requirements of this Declaration and each of the other Community Documents, as they each may be amended or supplemented.  The Owner shall provide the lessee with current copies of this Declaration and the other Community Documents.  The Association may adopt Rules & Regulations that further regulate leasing activities, including, but not limited to, prescribing the form of written lease, or requiring the registration of the lessee with the Association.  The terms “lease” and “leasing,” for purposes of this Section 3.22, shall refer to the regular, exclusive occupancy of a Unit by any Person, other than the Owner, for which the Owner receives any consideration or benefit, including, but not limited to, rent, fees, or in-kind services.

                3.23         Community Reserves.  All portions of the Properties subject to the Community Reserves shall be known as “Open Spaces” and shall be generally left in their natural state.  Any proposed alteration of a community reserve area, including the removal of fallen limbs, dead trees or other natural debris, shall require the written consent of the ARB and, during the Declarant Control Period, the written consent of the Declarant.

                3.24         Maya Artifacts.  Maya artifacts are considered the possession of the Government of Belize; however, such artifacts may be displayed within the Community.  Removal of the artifacts from the Community is considered a material breach of this Declaration and such acts or omissions will subject such Owner or occupant to the fines and other sanctions of this Declaration.

Article IV
Rules & Regulations

                4.1           Framework for Regulation.  This Declaration establishes, as part of the general plan of development for the Community, a framework of covenants, restrictions and easements, which govern the Community.  This Declaration also provides for the promulgation, modification and expansion of the Rules & Regulations, which regulate the use of the Units and the Common Area in the interests of the health, safety and welfare of the Owners and other occupants of the Units, which Rules shall complement the restrictive covenants.  Within that framework, the Board of Directors and the Members shall have the flexibility to respond to unforeseen problems and changes in circumstances, conditions, needs, desires, trends and technology.  Accordingly, this Article establishes the procedures for modifying and expanding the initial Rules & Regulations set forth in Exhibit D.

                4.2           Rule-Making Authority of Board.  Subject to the limitations and procedural requirements of this Article and the Board of Directors’ duty to exercise reasonable business judgment and on behalf of the Association and the Members, the Board may modify, cancel or delete, limit, create exceptions to, or expand the Rules & Regulations.  The Board shall send notice to all Owners concerning any proposed action regarding the Rules at least fifteen (15) days prior to the Board meeting at which such action is to be considered.  Members or Voting Members, as the case may be, shall have a reasonable opportunity to be heard at the Board meeting prior to such action being taken.  A Board action regarding the Rules shall become effective after compliance with Section 4.4, unless Members and/or Voting Members, as the case may be, representing more than fifty percent (50%) of the total Class “A” votes, and the Class “B” Member, if any, disapprove such action at a meeting.  The Board shall have no obligation to call a meeting of the Members to consider such action, except upon receipt of a petition of the Voting Members pursuant to the requirements for special meetings provided in the Memorandum of Association.  Upon receipt of such petition of the Voting Members prior to the effective date of any Board action under this Section 4.2, the proposed action shall not become effective until after such meeting is held, and its effectiveness shall be subject to the approval or disapproval of the Voting Members at such meeting.

                4.3           Rule-Making Authority of Members.  Alternatively, at a meeting of the Members duly called for such purpose, Members and/or Voting Members, as the case may be, who represent more than fifty percent (50%) of the total Class “A” votes may vote to amend, expand or otherwise modify the Rules & Regulations then in effect.  Such action shall require approval of the Class “B” Member, if any.

                4.4           Notice of Newly-Adopted Rules.  Prior to any action regarding the Rules & Regulations taken under this Article IV becoming effective, the Board of Directors shall cause a copy of the new Rule or explanation of any changes to the existing Rules & Regulations to be (electronically or otherwise) sent or transmitted to every Owner.  The effective date shall not be fewer than fifteen (15) days following such distribution to the Owners.  The Association shall provide, at no charge, a copy of the Rules then in effect to any Owner or Chargee who requests it.

                4.5           Relationship to Architectural Guidelines.  No action taken under this Article shall have the effect of repealing, expanding or otherwise modifying the Architectural Guidelines or any provision of this Declaration or any other Community Documents other than the initial Rules & Regulations set forth in Exhibit D.  In the event of a conflict between the Guidelines and the Rules, the Guidelines shall control.

                4.6           Owners’ Acknowledgment & Notice to Purchasers.  By accepting a deed or other instrument conveying title to a Unit, each Owner shall be deemed to have covenanted and agreed that use of the Units and the Common Area is subject to the Rules & Regulations, as amended, expanded and otherwise modified from time to time.  Each Owner, by accepting a deed or other instrument conveying title to a Unit, shall be deemed to have acknowledged and agreed that the use, enjoyment and marketability of such Owner’s Unit will be affected by this Declaration and the Rules, which may be amended, expanded or otherwise modified from time to time. 

                4.7           Limitations on Rule-Making Authority.  Except as may be set forth in this Declaration, as it may be amended from time to time, or in the initial Rules & Regulations set forth in Exhibit D, all Rules shall comply with the following provisions:

                (a)           Similar Treatment.  The Owners who are similarly situated shall be treated in a similar manner; provided, however, that the Rules may vary by Neighborhood.

                (b)           Religious, Holiday & Political Displays.  The Owners shall have the absolute right to display, within their Homes, religious and holiday signs, symbols, and decorations of the kinds normally displayed in homes located in single-family residential neighborhoods, and such right may not be abridged by the Association; provided, however, that the Association may adopt Rules that reasonably regulate the time, place, and manner in which signs and symbols are displayed, or otherwise visible from outside a Home.  Likewise, the Owners shall have the absolute right to display political signs on behalf of candidates and issues, and the Association may not regulate the content of such political signs; provided, however, that the Association may adopt Rules that reasonably regulate the time, place and manner of the posting of such signs, including, for example, their size and other design criteria.

                (c)           Household Composition.  The Association shall adopt no Rule that restricts the freedom of the Owners to determine who lives in their households; provided, however, that the Association may require that all occupants be members of a single house-keeping unit and may limit the total number of occupants permitted in each Unit on the basis of the physical size of the Home and the occupants’ fair use of the Common Area.

                (d)           Activities within Homes.  Except as otherwise provided for herein, the Association shall adopt no Rule that restricts the activities of the Owners or other occupants carried on within the Homes; provided, however, that the Association may prohibit activities not normally associated with property restricted to residential use, and it may restrict or prohibit any activities that create monetary costs for the Association or other Owners, that create a danger to the health, safety or welfare of the occupants of other Units, that generate excessive noise or traffic, that create unsightly conditions visible from outside of or adjacent to the Home, or that create an unreasonable source of annoyance to the occupant(s) of other Unit(s).

                (e)           Allocation of Burdens & Benefits.  Except as otherwise provided for herein, the Association shall adopt no Rule that alters the allocation of financial burdens among the various Units, or the rights to use the Common Area, to the detriment of any Owner over that Owner’s written objection delivered to the Association.  Nothing in this provision shall prevent the Association from changing the Common Area available, from adopting Rules for the use of the Common Area generally applicable to all Owners, or from denying use privileges to any Owner who is delinquent in paying Assessments, has abused the Common Area, or has violated the Community Documents.  This provision does not affect the right to increase the amount of Assessments as provided in Article X.

                (f)            Transfer & Leasing.  The Association shall adopt no Rule that prohibits the lease or transfer of any Unit, or that requires the consent of the Association or the Board of Directors for the lease or transfer of any Unit; provided, however, that the Association or the Board may adopt a Rule that requires any lease of a Unit to include a term of up to twelve (12) months.  The Association may also adopt a Rule that requires the Owners to use written lease forms approved by the Association, but shall not impose any fee on the lease or transfer of any Unit greater than an amount reasonably incurred by the Association in administering that lease or transfer.

                (g)           Abridging Existing Rights.  The Association shall adopt no Rule that requires any Owner to dispose of personal property that was placed within a Unit prior to the adoption of such Rule, provided such personal property was in compliance with all Rules previously adopted and in compliance with all district, city and foreign laws.  This exemption shall apply only during the period of such Owner’s ownership of the Unit, and shall not apply to subsequent Owners who take title to the Unit after adoption of the Rule.

                (h)           Reasonable Rights to Develop.  The Association shall adopt no Rule that restricts or interferes with Declarant’s right to develop the Community.

The limitations in Paragraphs (a) through (g) of this Section 4.7 shall only limit rule-making authority exercised pursuant to this Article IV; these limitations shall not apply to amendments to this Declaration adopted in accordance with Article XVI.

Article V
Architectural, Building Guidelines & Landscaping Restrictions

5.1           Imposition of Covenants Regarding Architecture & Landscaping.  Declarant, for itself and for its successors-in-title to all land within the Community, hereby covenants and agrees that such land shall be subject to the restrictive covenants regarding the architectural and landscaping elements of the improvements to be constructed or installed within the Units set forth in this Article V, and the Architectural Guidelines adopted pursuant hereto, and hereby declares that the Board of Directors or the Architectural Review Board, as applicable, is authorized to enforce such covenants and the Guidelines.  Every Owner of land within the Community, by its acceptance of a deed or other instrument conveying title to such land, shall be deemed to have covenanted and agreed to comply with such covenants and the Guidelines.

                5.2           Compliance with Laws, Etc.  No one may construct or install any architectural or landscaping element that violates laws, ordinances, codes or regulations of Belize; provided, however, that the Board of Directors shall have no obligation to enforce such laws, ordinances, codes or regulations.

                5.3           Dumping, Burning or Burying Materials.  No one may engage in outside dumping, accumulation or burning of trash, leaves, debris, or other materials, except during the normal course of constructing or installing improvements within a Unit; provided, however, that Declarant and the approved Builders may dump and bury rocks and trees removed from a building site on such building site in accordance with applicable laws, ordinances, codes and regulations governing such practices.

                5.4           Subdivision of Units.  No one may subdivide a Unit into two or more Units, or alter the boundary lines of any Unit after the Plat creating such Unit has been recorded; provided, however, that Declarant may, at any time and from time to time, modify the boundary lines of, subdivide, or replat one or more Units with the prior written consent of the Owner or Owners thereof.

                5.5           Combination of Units.  No one may combine two or more Units without the express written permission of the ARB and the Class B Member during the Development Period; provided, however, Declarant may, at any time and from time to time, modify the boundary lines of, combine, or replat two or more Units with the prior written consent of the Owner or Owners thereof.

                5.6           Mobile Homes.  No one may assemble, place or install a mobile home, modular home, manufactured housing unit, or similar structure anywhere within the Community; provided, however, that a mobile construction office may be placed upon each Unit for use during the construction or installation of the improvements thereon.  In the event that a dispute arises as to what may constitute a “mobile home” under particular circumstances, the determination of Declarant, the Board of Directors, or the ARB, as applicable, shall control.

                5.7           Conversion of Garages.  No one may convert any garage to finished space for use as an apartment or other living area without prior approval of the ARB pursuant to Article VI.

                5.8           Foul & Obnoxious Odors.  No one may construct or install any architectural or landscaping element within a Unit from which emanates foul or obnoxious odors, or the existence of which is in any way noxious, dangerous, unsightly, unpleasant, or of a nature that may diminish or destroy the enjoyment of the Community.

                5.9           Nuisances, Etc.  No one may construct or install any architectural or landscaping element that, in the reasonable determination of the Board of Directors, tends to cause embarrassment, discomfort, annoyance, or nuisance to the Owners or occupants of other Units.

                5.10         Fences, Walls, Etc.  No one may construct or install any fence, exterior wall, hedge or similar barrier without prior written approval of the ARB pursuant to this Article V.  Declarant, the Board of Directors, or the Architectural Review Board, as applicable, may adopt Architectural Guidelines that further regulate fences and other barriers, including, but not limited to, prescribing or prohibiting certain types or styles of fences or other barriers, restricting the location of such fences or other barriers to certain areas of a Unit, and providing for exceptions from otherwise required placement based upon topography, location or other characteristics of a particular Unit.

                5.11         Drainage.  No one may obstruct or re-channel drainage flows after the location and installation of drainage swales, catch basins, storm sewers, storm drains and similar improvements; provided, however, that Declarant and the Association shall have such right provided that the exercise of such right shall not materially diminish the value of or unreasonably interfere with the use of any Unit without the consent of the Owner of such affected Unit.

                5.12         Exterior Antennas, Etc.  No one may construct or install any satellite dish, antenna or similar structure within a Unit without first obtaining the ARB’s express written approval pursuant to Article VI; provided, however, that a Unit Owner may, without obtaining such approval, construct or install: (i) an antenna or satellite dish designed to receive direct broadcast satellite services, including direct-to-home satellite services, that is 1.5 meters or less in diameter or diagonal measurement; (ii) an antenna designed to receive video programming services via multi-point distribution services, including, for example, multi-channel, multi-point distribution services, instructional television fixed services, and local multi-point distribution services, that is 1.5 meters or less in diameter or diagonal measurement; or (iii) an antenna designed to receive television broadcast signals that is 1.5 meters or less in height, diameter or diagonal measurement.  Declarant and the Association shall have the right, but not the obligation, to erect an aerial, satellite dish, or other apparatus for a master antenna, cable, or other communication system for the benefit of all or a portion of the Community in which case Unit Owner’s may not be permitted to install the items in subparagraphs (i)-(iii) herein.

                5.13         Dilapidated Structures, Etc.  No one may retain any structure, fixture, equipment, accessory or other items on the exterior portions of a Unit that have become rusty, dilapidated, or otherwise fallen into a state of disrepair. If the Unit Owner fails to repair, refurbish, demolish or remove such dilapidated structure, as requested by the Declarant, during the Declarant Control Period, or the Association thereafter, the Declarant, during the Declarant Control Period and/or the Association, may demolish and/or remove such structure and assess the such Unit Owner for the costs thereof plus an administrative charge equal to fifteen percent (15%) of such demolition and removal costs.  Entrance onto such Units shall not be considered a trespass and the demolition and removal of such property shall not be considered conversion or theft.

                5.14         Irrigation.  No one may install or use a sprinkler or irrigation system, which draws upon water from the river or other ground or surface waters within the Community; provided, however, that Declarant and the Association (and their respective successors and assigns) shall have the right to draw water from such sources or approve others to make such use or uses.

                5.15         Miscellaneous Exterior Accessories.  No one may construct, install, place or modify any structure, fixture, equipment or exterior accessory, permanently or temporarily, on any improved or unimproved exterior portion of a Unit, without first obtaining written approval of the ARB pursuant to Article VI.  This shall include, without limitation, the construction, installation, placement or modification of any sign, basketball backboards and hoops, swing sets, or other sports or play equipment; clotheslines; garbage cans; woodpiles; in-ground or above-ground swimming pools; decks, patios, terraces or similar structures; and dog runs or animal houses or pens of any kind. No Unit Owner whose Unit fronts the river may construct or cause to be constructed a pier, dock or similar structure unless approved in writing by the ARB.

                5.16         Relationship to Guidelines & Rules.  Declarant, the Board of Directors, or the ARB, as applicable, may adopt Architectural Guidelines that further regulate the construction, installation, placement, or modification of any architectural or landscaping element, including, but not limited to, prescribing permitted locations and/or architectural screening for such elements, permitting some while prohibiting other elements, or imposing conditions or restrictions for such elements.  Declarant or the Board of Directors, as applicable, may adopt Rules & Regulations that further regulate the use of such elements after their construction, installation or placement.

5.17         Community Systems.  “Community Systems” shall mean and refer to any and all cable television, telecommunication (including, for example, telephone), data transfer systems, energy systems, alarm/monitoring or other lines, conduits, wires, amplifiers, towers, antennae equipment, materials, installations and fixtures (including, for example, those based on, containing or serving future technological advances not now known) installed by or at the request of Declarant or pursuant to any grant of easement or authority by Declarant within the Community and serving more than one Unit.  Declarant shall have the right, but not the obligation, to convey, transfer, sell or assign all or any portion of the Community Systems located or to be located, if ever, within the Community, or all or any portion of the rights, duties, or libations with respect thereto to the Association or any other Person, including for example, an Owner, as to any portion of the Community System located on/in his or her Unit).  If and when any of the aforesaid Persons receives such a conveyance, sale, transfer or assignment, such entity shall automatically be deemed vested with such rights of Declarant with regard thereto as are assigned by Declarant in connection therewith; provided, however, that if the Association is the applicable Person, then any Community Systems or portions thereof shall be deemed to be Common Areas unless otherwise provided by the Declarant.  Any conveyance, transfer, sale or assignment made by Declarant pursuant to this Section (i) may be made with or without consideration; (ii) shall not require the consent or approval of the Association or any Owner; and (iii) if made to the Association, shall be deemed to have been automatically accepted (with all rights, duties, obligations and liabilities with respect thereto being deemed to have been automatically assumed).

In recognition of the intended increased effectiveness and potentially decreased installation and maintenance costs and user fees arising from the connection of all Units in the Community to the applicable Community Systems, each Owner and occupant of a Unit shall by virtue of the acceptance of the deed or other right of occupancy thereof, be deemed to have consented to and ratified any and all agreements to which the Association is a party, which is based upon (in terms of pricing structure or otherwise) a requirement that all Parcels be so connected.  The foregoing shall not, however, prohibit the Association from making exceptions to any such one hundred percent (100%) use requirement in its reasonable discretion.

Article VI
Architectural Review & Guidelines

                6.1           Approval of Improvements Required.  No one may place, construct, or install any structure or other improvement within a Unit, nor begin the construction or installation of any improvements or other related work (including staking, clearing, excavation, grading and other site work, exterior alterations of existing improvements, or planting or removal of landscaping), within the Community, except in compliance with this Article VI and the Architectural Guidelines.  No approval shall be required to repaint the exterior of a structure in accordance with the originally approved color scheme or to rebuild in accordance with the original plans and specifications, as previously approved.  The Owner of a Unit may remodel, repaint or redecorate the interior of the Home within such Unit without approval of the ARB; provided, however, that any modifications to the interior of screened porches, patios, and similar portions of a Home that are visible from the exterior shall be subject to approval by the ARB.  All Homes and other permanent improvements constructed or installed within the Community shall be designed by, and built in accordance with the plans and specifications of a residential designer or architect, unless Declarant, or its designee, otherwise approves such plans and specifications in its sole discretion.  This Article shall not apply to the activities of Declarant, or to the activities of the Association during the Declarant Control Period.

                6.2           Architectural Review by Declarant.  Each Owner, by accepting a deed or other instrument conveying any interest in a Unit or any other portion of the Community, acknowledges that Declarant, as the developer of the Community and as an Owner of Units as well as other land within the immediate vicinity of the Community, has a substantial interest in ensuring that the Homes and other permanent improvements constructed or installed within the Community enhance Declarant’s reputation as a developer and do not impair Declarant’s ability to market, sell, or lease its Units or its property elsewhere.  Accordingly, each Owner shall be deemed to have covenanted and agreed that no activity within the scope of this Article VI shall be commenced within such Owner’s Unit unless and until Declarant, or a Person or Entity appointed by Declarant, has given its prior written approval for such activity, which approval may be granted or withheld in Declarant’s or its designee’s sole discretion.  In reviewing and acting upon any request for approval, Declarant or its designee shall be acting solely in Declarant’s interest and shall owe no duty to any other Person or Entity.  Declarant’s rights reserved under this Article VI shall continue so long as Declarant owns any Unit or any other portion of the Community, unless Declarant earlier terminates such rights in a recorded instrument.  Declarant may, in its sole discretion, appoint one or more Persons or Entities, from time to time, to act on Declarant’s behalf in reviewing applications pursuant to this Section 6.2.  Declarant may, from time to time, but shall not be obligated to, delegate all or a portion of its reserved rights under this Article VI to: (i) an Architectural Review Board appointed by the Board of Directors; or (ii) a committee comprised of architects, engineers or other Persons, who may or may not be Members.  Any such delegation shall be in writing, shall specify the scope of responsibilities delegated, and shall be subject to: (i) Declarant’s right to revoke such delegation at any time and re-assume jurisdiction over the matters previously delegated; and (ii) Declarant’s right to veto any decision which Declarant determines, in its sole discretion, to be inappropriate or inadvisable for any reason.  So long as Declarant has any rights under this Article VI, the jurisdiction of the Architectural Review Board or the Board shall be limited to such matters as Declarant specifically delegates to them.  For purposes of this Article VI, the entity having jurisdiction in a particular case shall be referred to as the “Reviewer.”

                6.3           Review by Architectural Review Board.  Upon delegation by Declarant or upon expiration or termination of Declarant’s rights under this Article VI, the Association, acting through the Architectural Review Board, shall assume jurisdiction over architectural review matters.  The members of the ARB, when appointed by the Board of Directors, shall consist of at least three (3), but not more than seven (7) Persons who shall serve and may be removed and replaced at the pleasure of the Board in its sole discretion.  The members of the ARB need not be Members or representatives of Members, and may, but need not, include architects, engineers or similar design professionals, who may be compensated in such manner and amount, if any, as the Board may determine.  The Board of Directors shall include the compensation, if any, of such design professionals in the Common Expenses stated in the Association’s annual budget.  Unless and until such time as Declarant delegates all or a portion of its reserved rights to the Association, or Declarant’s rights under this Article VI terminate or expire, the Association shall have no jurisdiction over architectural review matters notwithstanding any other provision in this Declaration to the contrary.

                6.4           Architectural Review Fees.  The Reviewer may establish, by a duly adopted rule of general application, and charge reasonable fees for the review of applications, and may require such fees to be paid in full before the review of any application.  Such fees may include the reasonable costs incurred in having any application reviewed by architects, engineers or other professionals.  Declarant and the Association may employ architects, engineers, or other design professionals as deemed necessary to perform the review.

                6.5           Architectural Guidelines.  Declarant has promulgated the initial Architectural Guidelines, which are located herein.  Said Guidelines may contain general provisions applicable to all of the Community, as well as specific provisions, which vary from Neighborhood to Neighborhood.  The Guidelines are intended to provide guidance to the Owners and the approved Builders regarding matters of particular concern to the Reviewer in considering applications.  The Guidelines are not the exclusive basis for decisions of the Reviewer, and compliance with the Guidelines does not guarantee approval of any application.  Declarant shall have sole and full authority to amend the Guidelines as long as it owns any portion of the Community, notwithstanding a delegation of reviewing authority to the ARB, unless Declarant also delegates the power to amend the Guidelines to the ARB.  Upon termination or delegation of Declarant’s right to amend the Guidelines, the ARB shall have the authority to amend the Guidelines with the prior written consent of the Board of Directors.  Any amendments to the Guidelines shall apply prospectively only, and shall not be applied retroactively to require modifications to or removal of improvements previously approved after the approved construction or modification has commenced.  There shall be no limitation on the scope of amendments to the Guidelines, and such amendments may remove requirements previously imposed or otherwise make the Guidelines less restrictive.  The Reviewer shall make the Guidelines available to the Owners and the Builders who seek to engage in development or construction within the Community.   Each Unit Owner agrees to obtain the then current copy of the Guidelines prior to authorizing any architect, engineer, or other design professional to commence any such work with respect to the Unit or a Home thereon.

                6.6           Architectural Review Procedures.  Except as otherwise specifically provided in the Guidelines, no construction, installation or modification of improvements shall commence anywhere within the Community until an application for review has been submitted to and approved by the Reviewer.  Such application shall include plans and specifications showing site layout, structural design, exterior elevations, exterior materials and colors, landscaping, drainage, exterior lighting, irrigation, and other features of the proposed improvements, as applicable.  The Guidelines and the Reviewer may require the submission of such additional information as may be reasonably necessary to consider any application.  In reviewing each application, the Reviewer may consider any factors it deems relevant, including, without limitation, the harmony of the external design with the surrounding structures and environment.  The Reviewer may base its decisions on purely aesthetic considerations.  Determinations as to such matters may be purely subjective, and opinions may vary as to the desirability or attractiveness of particular improvements.  The Reviewer shall have the sole discretion to make final, conclusive and binding determinations on matters of aesthetic judgment, and such determinations shall not be subject to review so long as they are made in good faith and in accordance with the procedures set forth herein.

                6.7           Time & Notice of Decisions.  Except as otherwise provided below, the Reviewer shall make a decision regarding each application within thirty (30) days after receipt of a completed application and all required information.  The Reviewer may: (a) approve the application, with or without conditions; (b) approve a portion of the application and disapprove other portions; or (c) disapprove the application in its entirety.  Until termination or expiration of Declarant’s rights under this Article VI, the Reviewer shall notify Declarant in writing within seven (7) days after the Reviewer has approved any application or portion thereof within the scope of matters delegated to the ARB by Declarant.  A copy of the application and any additional information that Declarant may require shall accompany the notice.  Declarant shall have fifteen (15) days after receipt of such notice along with the complete application to veto any such action or portion thereof, in its sole discretion, by written notice to the Reviewer.  The Reviewer shall notify the applicant in writing or electronically of the final determination on any application within seven (7) days thereafter or, with respect to any determination by the Reviewer, subject to Declarant’s veto right, within seven (7) days after the earlier of: (x) receipt of notice of Declarant’s veto or waiver thereof; or (y) expiration of the fifteen-day period for the exercise of Declarant’s veto.  In the case of disapproval, the Reviewer may, but shall not be obligated to, specify the reasons for any objections or offer suggestions for curing any objections.  In the event that the Reviewer fails to respond in a timely manner, approval shall be deemed to have been given, subject to Declarant’s right to veto any approval pursuant to this Section 6.7.  However, no approval, whether expressly granted or deemed granted, shall be inconsistent with the Guidelines unless a written variance has been granted pursuant to Section 6.10.  The Reviewer shall provide notices of its decisions in accordance with Section 20.14.

                6.8           Construction to be Diligently Pursued.  If an Owner or Builder does not commence construction, installation or modification of improvements within one (1) year after the date of approval, such approval shall be deemed withdrawn, and the Owner or Builder shall re-apply for approval before commencing any construction, installation or modification of improvements upon any Unit or Home.  Once an Owner or Builder has commenced construction, installation or modification of improvements on a Unit, such Owner or Builder shall diligently pursue the project to completion.  The Owner or Builder shall complete all work within one (1) year from the date of commencement, unless otherwise specified in the notice of approval, or unless the Reviewer grants an extension in writing or electronically, which the Reviewer may do in its sole discretion.  If the Owner or Builder does not complete the project within the required time, the incomplete work shall be deemed to be non-conforming and shall be subject to enforcement action by Declarant, the Association or any aggrieved Owner.

                6.9           No Waiver of Future Approvals.  The Persons reviewing applications under this Article will change from time to time, and opinions regarding aesthetic matters, as well as the interpretation and application of the Architectural Guidelines, may vary accordingly.  In addition, the Reviewer may not always be able to identify objectionable features until the construction of a Home is substantially completed, in which case it may be unreasonable to require changes to the improvements involved, but the Reviewer may refuse to approve similar proposals in the future.  Approval of applications or plans, or in connection with any other matter requiring approval, shall not be deemed to constitute a waiver of the right to withhold approval as to any similar applications, plans, or other matters subsequently or additionally submitted for approval.

                6.10         Variances.  The Reviewer may, from time to time, authorize variances from compliance with any of the Architectural Guidelines when circumstances such as topography, natural obstructions, hardship, or aesthetic or environmental considerations require, but only in accordance with duly adopted policies of general application.  No variance shall: (a) be effective unless in writing; (b) be contrary to this Declaration; or (c) preclude the Reviewer from denying a variance in other circumstances.  For purposes of this Section 6.10, the Owner or Builder’s inability to obtain the approval of any governmental agency or the issuance of any permit, or the terms of any financing shall not be considered a hardship warranting a variance.  If the Reviewer grants a variance with regard to a particular Unit, the Owner of the Unit shall be required to obtain all necessary approvals, and, if required, all necessary variances, of any governmental authority having jurisdiction over the Community, before commencing the construction, installation or modification of the improvements within the Unit.

                6.11         No Liability for Approved Plans.  The standards and procedures established by this Article VI, and the Architectural Guidelines promulgated pursuant hereto are intended to maintain and enhance the overall aesthetics of the Community; they do not create any duty to any Person or Entity.  Review and approval of any application pursuant to this Article VI may be made solely on the basis of aesthetic considerations, and the Reviewer shall not bear any responsibility or liability for ensuring the structural integrity or soundness of approved construction, installation or modification of improvements, nor for ensuring compliance with building codes and other governmental requirements, nor for ensuring that all Homes are of comparable quality, value or size, of similar design, or aesthetically pleasing or otherwise acceptable to other Owners.  Declarant, the Association, the Board of Directors, the Architectural Review Board, or any member of any of the foregoing shall not be held liable for soil conditions, drainage or other general site work; any defects in plans revised or approved hereunder; any loss or damage arising out of the action, inaction, integrity, financial condition or quality of work of any (approved) contractor or its subcontractors, employees or agents, whether or not Declarant has approved or featured such contractor as a Builder in the Community; or any injury, damages, or loss arising out of the manner or quality or other circumstances of approved construction within or modifications to any Unit.  In all matters, the members of the Board and the ARB shall be indemnified and held harmless by the Association as provided in Section 6.29.

                6.12         Certificate of Architectural Compliance.  Any Owner or Builder may request that the Association issue a certificate of architectural compliance certifying that there are no known violations of this Declaration, the Architectural Guidelines and the Rules & Regulations regarding such Owner’s or Builder’s Unit.  The Association shall either grant or deny such request within fifteen (15) days after receipt of a written request for same, and may charge a reasonable administrative fee therefor, as established in a Resolution of general application duly adopted by the Board of Directors, for issuing such certificates.  Issuance of such a certificate shall preclude the Association from taking enforcement action with respect to any condition as to which the Association had actual knowledge or notice as of the date of such certificate.

6.13         Establishment of the Architectural Review Board (“ARB”)

(a)           Membership. In order to administer and supervise the enforcement of all the Guidelines set forth herein below and in order to provide a systematic and uniform review of all proposed construction and modifications to existing structures of any type and nature in the Community, the Board of Directors shall have promulgated and enacted the Guidelines herein set forth and do hereby establish the ARB.  Each member of the ARB shall be a voting member. 

(b)           ARB’s Authority.  Notwithstanding the issuance of an approval by the Association or the ARB, the Association or the ARB shall have the authority to halt any construction process in the Community that violates this Declaration or these Guidelines, as they both may be amended from time to time.  The ARB, with the Declarant’s approval, may promulgate and distribute construction‑related rules and regulations and determine and review policies, procedures and criteria.

6.14         Definitions for ARB Procedures

(a)           “Applicant” means the Person or Entity making the submittal to the ARB; either the Unit Owner or said Owner’s agent.

(b)           “Category of Review” means one of the five organized areas of review criteria, which the Association hereby delegates to the ARB are as follows: (i) Site Plan, (ii) Survey, (iii) Floor Plan and Elevations, (iv) Exterior Materials and Colors, (v) Landscape.  All items submitted must to the ARB must be organized accordingly and show compliance with all review criteria for the Category submitted, as detailed in the Section herein entitled "Review Criteria" in order to receive final approval.

(c)           “Final Approval” means a decision by the ARB that the item(s) reviewed have met all criteria, standards and requirements for that Category of Review and the Declarant has not vetoed said approval.  Once the ARB issues a Final Approval for both the Site Plan and Floor Plan and Elevations Categories and the Declarant veto period expires, the Applicant shall be authorized to proceed with the commencement of construction. However, no site work or other construction activity shall be permitted for any Category of Review until and unless the Applicant receives each of the following: (i) plans stamped Final Approval by the ARB; (ii) ARB’s decision letter; and (iii) a building permit from the authorized Belize building and housing authority.

(d)           “Conditional Approval” means a decision by the ARB that the item(s) reviewed meet(s) all criteria with the exception of a few minor notations.  The ARB has determined, in its sole discretion, that the item(s) may be revised and resubmitted to the ARB.  No site work or construction activity may commence on a Unit or modification to a Home or other improvement or structure until such time as the Applicant receives plans with an ARB Final Approval stamp thereon along with the decision letter from both the ARB and the authorized official from the authorized Belize building and housing authority.  Failure to obtain and/or receive Final Approval within the time period allotted will result in an official decision of denial and the Applicant must initiate the process from the beginning. 

(e)           “Denial” means a decision by the ARB and/or the Declarant that the item(s) reviewed are in conflict with ARB criteria standards or insufficient in detailing the appropriate ARB criteria.  Resubmission of revised item(s) will require the Applicant to pay the ARB a  resubmission fee in the amount prescribed the ARB, which may be changed at any time and from time to time without notice.

(f)            “DOE” means the Government of Belize, Department of the Environment.

(g)           “Table” means a decision by the ARB wherein the item(s) reviewed by the ARB are not in conflict with the criteria; however, additional information must be received either by the ARB or Applicant in addition to that otherwise required by the ARB, due to unusual or exceptional circumstances.

(h)           “Decision Letter” means the letter from the ARB that details the ARB’s decision regarding any items reviewed by the ARB.

(i)            “Height” means that distance between the ground and the highest point of the roof.

(j)            “Lowest Finished First Floor Elevation” means that elevation of the lowest, habitable finished floor line.

(k)           “Hardship” means any unusual and extraordinary circumstances beyond the control of the Applicant that causes a problem with either the construction or use of a Home, as determined in the sole and absolute discretion of the ARB.  No Hardship variance shall modify or amend any provisions of this Declaration.

(l)            “Privacy Wall” means a wall, of which the purpose is to provide privacy into a specific Unit or Home.

(m)          “Accessory Structure” means any man‑made item or element including, but not limited to: sculptures, statuary, decorative art objects, urns, rock gardens, etc.

(n)           “Ground Preparation” means and includes demolition, starting site preparation, removal or alteration of landscaping, beginning alterations to or demolition of existing Homes or Accessory Structures, new Home construction, or commencing any work on a Unit prior to ARB approval therefor.

                6.15         ARB Meetings.  Meetings.  ARB meetings are held monthly, unless otherwise designated herein or by the ARB.  The ARB Chairperson, as appointed by the Declarant, chairs such meetings.  A majority of voting ARB members constitutes a quorum for any ARB meeting.  Decisions are based on a majority vote of those voting members present at the meeting or voting by proxy.  An ARB member may designate a proxy to act as a temporary member in his/her place; provided that, the Declarant approves such designee in advance of the meeting.

6.16         Construction Restrictions.  No construction, demolition or alteration to a Unit, Home or Accessory Structure or other improvement on a Unit may be started in any manner or respect, including, for example, ground preparation, until the Applicant has received plans stamped Final Approval by the ARB for both the Site Plan and Floor Plan and Elevations Categories.  Said Approvals must be from the applicable governmental housing and building authority as well as the ARB.  No other category of work may be commenced without Final Approval being received by the Applicant, except for surveying and staking.  "Construction" includes demolition of an existing Home or improvement and Ground Preparation, as defined herein, and also includes the alteration or renovation of an existing Home where fifty percent (50%) or more of the floor area of the existing Home or improvement is to be altered, renovated or added.  Reasonable extensions of time may be granted by the ARB for good cause and the Applicant will be required to submit a payment of additional fees for such an extension, as provided in these Guidelines.  If the Unit Owner fails to comply with the ARB’s instructions relative to commencement and completion of construction, the ARB shall, in its discretion, impose fines against such Unit Owner(s) as provided herein.

6.17         Limitation of Liability. The standards and procedures established pursuant to this Article are intended to provide a mechanism for maintaining and enhancing the overall aesthetics of the Community only, and shall not create any duty to any Person or Entity.  Review and approval of any Application pursuant to this Article is made on the basis of aesthetic considerations only and neither the Declarant, the Association, nor the ARB or any member thereof shall bear any responsibility for ensuring the structural integrity or soundness of approved construction or modifications, the adequacy of soils or drainage, nor for ensuring compliance with building codes and other governmental requirements nor for ensuring that all Homes are of comparable quality, value or size, of similar design, or aesthetically pleasing or otherwise acceptable to neighboring Unit Owners, or for the performance and work quality or materials and supplies used by any contractor, subcontractor, or materialmen or supplies.  Neither the Declarant, the Association, the Board, or the ARB or any committee, or member of any of the foregoing shall be held liable for any injury, damages, or loss arising out of the manner or quality of approved construction on or modifications to any Unit, Home and/or Accessory Structure.  In all matters, the committees and their members shall be defended and indemnified by the Association as provided herein.

6.18         Easement Releases.   Review/approval does not relieve Applicants of the responsibility to obtain required releases for any construction in easements prior to commencement of construction.

6.19         Plan Preparation. All plans must be professionally prepared, either by a residential designer or architect.  All plans must be in compliance with all appropriate government agencies’ guidelines.

6.20         Unit Use.  Subject to the use restrictions contained herein, the Units designed on the Master Plan as residential parcels may only be used for residential or private recreational uses, multi-residential structures having Strata titles, resorts, lodges, hotels and bed and breakfasts.  Parcels designated on the Master Plan as commercial parcels may be used for residential and commercial purposes and multi-residential structures having Strata titles.

6.21         Review.  The ARB may withhold approval, or refrain from taking any action of any items for a Unit if there are existing ARB violations associated with the Unit, or any other Unit(s) owned by the Applicant, or if any other items requested by the ARB pertaining to the Unit, or other Unit(s) owned by the Applicant, have not been submitted to and received by the ARB, as requested.

6.22         Fines.  If the ARB notifies a Unit Owner of a violation of any provision of these Guidelines or this Declaration, and such violation is not corrected within thirty (30) days after delivery of notice in accordance with Section 20.14, then the ARB may impose a fine against the Unit and the Unit Owner in an amount up to a maximum of Five Hundred U.S. Dollars (US$500.00), and said fine may be re‑imposed every additional sixty (60) days, or part thereof, that said violation remains uncorrected.  The ARB shall notify the Association of such fines, and the Board shall have the authority to levy a Specific Assessment against such Unit for such fines, including, without limitation, the filing and foreclosing of a lien against the Unit.

                6.23         Procedure for Submission of an Application.

(a)           Submission Package.  The Submission Package should include a cover letter from the Applicant, any appropriate fee and the item(s) for review.  All packages are to be submitted in triplicate form.  Drawings must be submitted in English and the unit of measurement must be in feet and inches, not meters and centimeters.  Minimum scale requested for drawings is 3/16” = 1’.  There are three (3) Categories of Review:

(i)            Survey;

(ii)           Site Plan.  The Site Plan must show the position of the improvement or structure or Home on the Homesite with roof dimensions, setbacks and material specifications.  The Site Plan must also show the North position.

(iii)          Architectural Plans – including:

(A)          Floor Plan.  The Floor Plans must depict the interior dimensions (net area for each room) and exterior dimensions of each Home, Accessory Structure and improvement.  The Floor Plans of commercial buildings must show the location and description of the commercial space and Home, if applicable.  The Floor Plans must also contain a chart, which illustrates or depicts:

(1)  Gross area of Home, Accessory Structure and/or improvements building (based on outside dimensions). 

(2)           Sum of the veranda, stair and platform areas (and all other areas not considered part of the living or commercial area).

(3)           Sum of items above in subsections 6.23(a)(iii)(A)(1) and 6.23(a)(iii)(A)(2) considered total building area.

(B)           Sections.  At least one section of the Home, Accessory Structure or improvement must illustrate the highest point of such Home, Accessory Structure and/or improvement with the dimensions from the ground to top of the roof and material specifications.

(C)           Elevations.  You must submit front and side elevations.

(D)          Floor Framing System.

(E)           Roof Framing System.

(F)           Electrical Plan.

(G)           Plumbing Plan.

(H)          Exterior Colors and Materials.

                The Submission Package for Final Approval must include the final drawings as intended to be submitted to the Government of Belize.  Each Submission Package must include a Review Application and be complete, (i.e. all criteria pertinent to that Category of Review must be included or otherwise referenced, in order to receive Final Approval).  The criteria are detailed further in these Guidelines in the chapter on "Review Criteria."  All categories of review should be submitted simultaneously.

(b)           Review Fees.  There is a One Hundred U.S. Dollar (US$100.00) review fee that is required to be submitted to the ARB along with your submittal, which includes Preliminary and Final Review for all review category submissions.  The Fee for revising a previously approved plan is also One Hundred U.S. Dollars (US$100.00).  There is an additional One Hundred U.S. Dollar (US$100.00) fee charged to the Applicant for the ARB to review any submission package that has been previously denied, in whole or in part, by the ARB.

(c)           Deadline.  The ARB must receive the Applicant’s submission package by no later than the first day of each month at 11:00 a.m.  The Applicant may consider contacting the ARB for the times and dates for planned ARB meetings.

(d)           Plan Review.  The ARB shall review all submission packages, if completely submitted, within thirty (30) days of the ARB’s receipt unless otherwise requested by the Applicant or as otherwise specified by the ARB.  The ARB’s response to submission packages may be mailed or electronically transmitted, upon request.  The ARB’s response consists of one (1) set of appropriately stamped items and the ARB decision letter.  Applicants are encouraged to submit items to the ARB in a conceptual or preliminary state when there are questionable review items, as such submissions could avoid costly resubmission fees and/or delays in the review process.  There is no review fee to review conceptual aesthetic design drawings; however, the Declarant reserves the right to charge such a fee and to change such fee, if imposed, at any time and from time to time.  The ARB shall not be obligated to review any submission until and unless the required fee paid in good funds subject to no contingencies are received by the ARB.   Any submission to the ARB without such fees shall be deemed to be incomplete and not subject to the ARB’s review.

(e)           Revised Plans.  Applicants must submit to the ARB any and all revisions to any Final Approval item(s) in accordance with and subject to the above‑described procedures.  Revision fee due on submission of revisions is specified herein.

(f)            Withdrawal.  In the event a submission is deemed incomplete by the ARB in its discretion, the Applicant may withdraw the submission and, upon request, the ARB will refund any review fee received by the ARB.

(g)           Appeal.  In the event the Applicant desires to appeal the partial or complete Denial of an ARB decision, Applicant may request a re‑review of the submitted plans.  The ARB will re-consider its decision within thirty (30) days after the next monthly meeting.  If the issue being appealed by the Applicant is an issue of environmental significance, the ARB may refer such issue to the DOE and the DOE’s decision shall be final and binding upon the Applicant and the ARB.  All costs incurred by the ARB in referring the matter to the DOE and all costs and fees incurred by the Applicant relative to appearing before the DOE shall be borne exclusively by Applicant. 

(h)           Remedies.  In the event an Applicant improperly commences construction or site improvements for any Category of Review or for any other matter for which Final Approval has not been granted by the ARB, the ARB may, but shall not be obligated to, seek any and all remedies at law, equity or otherwise.

(i)            Completion of Construction; Certification; Survey; & Inspection.  The Home, Accessory Structure or improvement shall not be used or occupied by anyone until such time, if ever, as the ARB receives a notice of completion from the Unit Owner or his or her agent certifying that all construction and improvements on a Unit have been built substantially in accordance with the ARB approved plans and specifications.

                6.24        Review Criteria

(a)           Utilities

(1)           Energy Plan

(i)            Belize Electric Limited may be the primary source of energy in the Community.

(ii)           Solar power and/or wind power may be the primary source or supplementary source of energy for the Community.  Low decibel generators having sound attenuating may be used for emergency backup power.

(iii)          The use of a gauge is encouraged to monitor available energy in the battery and to indicate when batteries are full.

(iv)          The use of a voltmeter is encouraged to allow Unit Owners to adjust solar panels to the optimum angle to the sun.

(v)           The use of an occupancy sensor is encouraged to minimize the use of energy when the Unit is not occupied.

(vi)          For ventilation and cooling, passive and neutral techniques should be used.

(b)           Wells, Water Supply and Collection.  Units may have wells installed, as permitted by the ARB unless Declarant or its designee constructs a central water system, which it may, but shall not be obligated to do, or use cisterns, bladders or water catchment and holding systems, which store rainwater collected.

(c)           Waste

(1)           Toilets.  Toilets must be low-consumption, low-volume or low-flush water efficient toilets used in conjunction with septic tanks or cesspools.  Unit Owners may also install composting toilets within a Home, if they so desire; provided that, such toilets are approved by the ARB.

(2)           Gray water (showers, sinks, etc.).  Gray water holding tanks may be used in conjunction with drip irrigation systems for the fertilization of local planting.

(d)           Lighting fixtures

(1)           Home lighting may be low or high voltage.

(2)           Lighting shall be low intensity and directed downward or reflected with cut off angles so as to not be directly visible.

(e)           Approval.  All utility plans must be submitted to ARB for approval.  (It is recommended that all consumable goods or products, including but not limited to bathing products, cleaning solutions, cleaning products, cleaning supplies, household paper products and sunscreen must be biodegradable.)

6.25         Survey.  The ARB reserves the right to request a survey of any questionable item during construction of the Home.

6.26         Site Plan.

(a)           Setbacks.  All setbacks shall be subject to and comply with the covenants, conditions, restrictions and Guidelines contained herein, and shall be measured from the appropriate property line.  Dimensions from the property line for any structural elements (e.g. structures, screened enclosures, porches, walls, equipment, accessory structure, garage, etc.) must be shown.  The ARB may modify, amend or waive setback requirements in accordance with this document.

(1)           Minimum front yard, rear yard and side yard setback for dwellings, patios, porches, decks, garages, buildings and screened enclosures is ten (10) feet.

(2)           Minimum side yard setback for equipment, trash containers and other similar utilitarian devices is ten (10) feet.  Such items must be landscaped from view.

(3)           No equipment is permitted in front-, side- or rear-yard building setback areas.

(4)           Minimum setback for non‑privacy walls and landscape walls, as described herein, is twenty (20) feet from the front-, side-, rear-property lines unless otherwise approved by the ARB.  The ARB may change these minimums as deemed suitable.

(b)           Grade Elevations.  The site plan must show the minimum lowest, finished floor elevation.

(c)           Residential and Commercial Graphics.  All signage must be included in the submission package and approved by the ARB.

(d)           Fences and Walls.

(1)           The design, materials and height of any wall and/or fence must be shown, either on the site plan or by separate drawing.

(2)           Privacy walls and fences must not exceed eight (8) feet in height, except for a privacy wall around a cistern, which may not exceed fifteen (15) feet.

(3)           No wall or fence may obstruct the drainage or the flow of water.

(4)           Any combination of landscaping and fence or wall elements must be approved by the ARB to create an effect similar to a wall or fence.  The appropriate ARB provisions for wall and fences will apply in such instance.

(e)           Accessory Dwellings and Structures.

(1)           Any Accessory Structure must be detailed on the site plan and specifically approved by the ARB.

(2)           Aerials, antennae and satellite dishes may be installed on a Unit or Home, as approved by ARB; however, the Declarant reserves the right to install a community wide system and in such event all telecommunications shall be run through such system.

(3)           No Accessory Structures of any kind are permitted in the Community unless approved by the ARB

(f)            Swimming Pools, Hot Tubs, Whirlpools, Etc.

(1)           Swimming pools, hot tubs, whirlpools, etc. are permitted in the Community, as approved by the ARB.

(g)           Recreational Items.  Recreational courts such as basketball, tennis, volleyball, etc. are permitted within a Unit, as approved by the ARB.

(h)           Garbage and Trash Containers; Sanitary Structures

(1)           During the construction period of a Home or improvement, a construction container, or other approved containers are required on the site within the Unit.  Such containers or temporary toilets are to be located so as to provide minimum visual off‑site exposure.  Construction debris is to be removed from the Community frequently to avoid offense or nuisance to neighbors and must be disposed of at an appropriate disposal site at Owner’s or Owner’s agent’s sole cost and expense.

(2)           A wall, fence or adequate landscaping must conceal garbage containers and/or compost bins on residential parcels.

(i)            Utilities.  All power transformers and other utility service equipment are to be shielded by enclosures of wood, masonry or landscaping, all as approved by the ARB.

6.27         Architectural Plans.

(a)           Building Size.

(1)           Residential Parcels.              Construction of an improvement, including, for example, a structure, porches, decks and associated structures may not have a footprint that exceeds twenty-five percent (25%) of the gross parcel square footage (e.g. parcel size is 100' X 440' = 44,000 square feet structure, porch, deck and associated structures may not exceed 11,000 square feet).  Square footage measurements shall include the exterior walls.  Recreational courts such as tennis, basketball and volley courts shall not be included in such calculations.

(2)           Commercial Parcels.  Construction of an improvement, including, for example, structures, porches, decks and associated structures may not exceed fifty percent (50%) of the gross parcel square footage (e.g. parcel size is 100' X 440' = 44,000 square feet structure, porch, deck and associated structures may not exceed 22,000 square feet).  Square footage measurements shall include the exterior walls.  Recreational courts such as tennis, basketball and volley courts shall not be included in such calculations.

(3)           Owners of multiple Units, each contiguous, may construct a Home using the same calculation as above; however, multiple parcel square footage may be combined in the calculation of a single Home’s total square footage.

(4)           There may be multi-story Homes constructed within the Community, but such Homes must conform to the height restrictions listed herein.

(5)           Floor Plan drawings must use a minimum scale of 3/16" = 1'.

(b)           Elevations

(1)           The height of any Home, Accessory Structure, improvement or commercial improvement is not to be more than forty (40) feet above the ground.  The appropriate variables for calculating height have been specified in these Guidelines.

(2)           Elevation drawings must use a minimum scale of 3/16" = 1'.

(c)           Roofs.  Roofs may be designed to catch rainwater with drainage to a cistern or bladder.  Roofs are to be constructed with overhangs to protect Homes or commercial structures from mid‑day sun.

(1)           Applicants may install rooftop solar collectors, as approved by the ARB; engineering drawings, including reference to ventilators may be used, if the roof vents are low profile, blending into the roof materials.

(2)           Plumbing and heating vents protruding from any roof area are to be painted so as to blend into the roofing color.  Electrically powered ventilators may be used if the roof vents are low profile, blending into the roofing materials.

(3)           Roof plan must use a minimum scale of 3/16" = 1'.

(d)           Garages, Carports, Automobiles and Golf Carts.  Garages and carports are permitted.

(e)           Exterior Colors, Materials and Screening.

(1)           Exterior Colors.

(i)            All colors are to be approved by the ARB.  The ARB reserves the right to review any other item that may affect the exterior appearance of a Home, Accessory Structure or any other improvement.

(ii)           The ARB will consider the aesthetic harmony of the color schedule with the surrounding area.

(2)           Exterior Materials.

(i)            Imitation materials for facades are acceptable as long as they are architecturally integrated with Home design.

(ii)           Native materials (i.e. trees native to Belize) are encouraged.

(3)           Screen Enclosures.

(i)            Screen enclosures must be of a color that harmonizes with the natural scheme or flora.

(ii)           All screen roofs must be of a hip, gable or mansard type.

(iii)          Plans submitted for screen enclosures must include the following:

(A)          A complete site plan showing the screen enclosure.

(B)           A complete roof plan of the dwelling showing the screen enclosure with the configuration of the screen enclosure frame members in plan.

(C)           All affected exterior elevations of the entire dwelling showing all the frame members of the screen enclosure in place.

(f)            Landscaping.

(1)           Tree and Shrub Trimming and Removal.  No trees will be cut or removed from a Unit in excess of the amount necessary to clear the Unit for construction of a residential or commercial structure without ARB approval.

(2)           Landscape Materials.  Final Approval of all landscape material will be subject to the ARB’s inspection of the plantings during the six (6) month period following the completion of the landscape installation.

(g)           Exterior Lighting.  Outdoor lighting must be located so that it does not interfere with or become a nuisance to other residents or wildlife.  The light source of any exterior light must be shielded from public view. The ARB reserves the right to enforce lighting provisions from aesthetics and an environmental standpoint after the construction of a Home is completed.

6.28.        ARB Agreements.  Owners, builders and contractors jointly and individually assume responsibility for observance and compliance with all applicable rules, regulations, requirements and agreements herein contained.

(a)           Accessory Structures (Other than Homes - As approved by the ARB). Accessory Structures must be located within the Unit’s property lines and setbacks.  Accessory Structures must not be located, constructed, painted or used in such manner so as to create any off‑site visual, audible or aesthetic nuisance or disturbance.  The ARB shall consider height (including base or foundation structure), size, number of objects in adjacent area, color, design, lighting (if any), material, subject and possible interference with rights of other Owners to quiet enjoyment of their rights and properties.  Accessory Structures must not create a safety hazard to Owners or occupants or off‑site persons (e.g. neighbors).  Landscaping screening or restrictions on hours or manner of use, may be considered in reviewing proposed installation of the Accessory Structures.

(b)           Maintenance; Exterior Colors.  Repainting of any Home, Accessory Structure or any other improvement must be in the color originally approved by the ARB without application to the ARB.  Subject to review of neighboring parcels and other residences within the Community, variations and variances shall be considered or permitted if in keeping with overall requirements of aesthetics for type of structure, location, community appearance, maintenance and resale values.  Maintenance is the responsibility of the Parcel Owner.  All dwellings, accessory and related structures shall be cleaned and maintained as in original or subsequently approved condition so as to maintain the harmony and aesthetic appearance of the community.  Fines for non‑observance shall be imposed at the sole discretion of the ARB.

(c)           Satellite Dishes.  The ARB will regulate and must approve all exterior parts of a Digital Satellite System, including, for example, satellite dish, base, mounting board, mounting brackets, wiring and all accessory and related equipment.

(1)           Satellite dishes on Residential parcels may not exceed 1.5 meters in diameter.

(2)           Satellite dishes must be screened from off‑site view by wall, fence, shrubs, trees or other appropriate landscaping.  Any such screening is to be maintained.

(3)           Each application for installation is to be reviewed, at the discretion of the ARB, on an individual basis, considering site, color, manner of installation, location of installation, possible visual or other nuisance, aesthetics, size and other factors.

(4)           The use of a satellite dish must comply with Belize law.

(d)           Solar Collectors and Panels.  Application to include scaled roof plan showing design and location of solar panels, all elevations reflecting accessory equipment and supply and return pipes.  Solar panels of any type are not to be visible from the front of the dwelling.  Otherwise, permitted only on roofs with an orientation to the south or with 45 degrees east or west of due south at locations.  The ARB will consider the appearance and aesthetic harmony of the installation but shall not have responsibility for its materials, structural integrity, safety, suitability for intended use or manner of installation.

(e)           New Construction, Alteration, Renovation, Demolition and Ground Preparation of Dwellings and Parcels (herein defined as "construction").

(1)           Adjoining parcels shall be kept free of all construction material and refuse at all times during construction.

(2)           Sanitary structures (e.g. portable toilets) and refuse containers are limited to two of each located on the construction site.  Both portable toilets and containers must be screened to provide minimum off‑site view or exposure.

(3)           Building materials, refuse or construction equipment shall not be discarded on or in any way permitted to remain on neighboring properties.

(4)           Damage to adjoining properties is the responsibility of Parcel Owner and builder/contractor.

(5)           In addition to penalties and liabilities provided by DOE, the ARB may halt the construction process on a site until the violation is corrected.

(f)            Fire Extinguishers.   All Homes, Accessory Structures and commercial buildings must have a minimum of one fire extinguisher per each 1,000 square feet of dwelling.

6.29         ARB Indemnification.  Every Officer and Director of the Declarant, the Declarant, the Association, each ARB member, and each of their respective agents and employees (the “Indemnified Parties”) shall be defended and are hereby indemnified, released and held harmless by the Owners from and against any and all claims, damages, judgments, liabilities, expenses, and fees including, for example, counsel fees and disbursements, reasonably incurred by or imposed upon such Indemnified Parties in connection with any judicial, quasi-judicial or any other proceeding to which such parties may be a party or in which he/she/they may become involved by reason of his/her/their being or having been an Officer, Director or member of the ARB, Association and/or Declarant, whether or not he/she/they is/are an Officer, Director, member or employee of the ARB, Association or Declarant at the time such expenses are incurred.  The foregoing right of indemnification shall be in addition to and not exclusive of all other rights to which such Officer, Director, member or employee of the ARB, Association or Declarant may be entitled.

Each Owner acknowledges that their Unit has been sold and purchased by them in their “as‑is” “where-is” condition.  Each Owner agrees to release, defend, indemnify and hold Declarant, Declarant’s officers, predecessor officers, directors, predecessor directors, shareholders, managers, agents and employees harmless from and against any and all claims, demands, damages, costs and expenses of whatsoever nature or kind, including attorney's fees, disbursements and costs, arising from any matter relating to the Community, including, without limitation, water level fluctuations of any and all rivers, ponds, creeks, and wetlands on or adjacent to the Community and other causes or conditions, which are beyond the reasonable control of Declarant.

Article VII
Maintenance, Repair & Replacement

                7.1           Maintenance of Units.  Each Owner shall maintain the Home and other permanent improvements and all landscaping encompassed within such Owner’s Unit in a manner consistent with the Community Documents and the Community-Wide Standard, unless such maintenance responsibility is otherwise assumed by or assigned to the Association or a Neighborhood Association pursuant to any Supplemental Declaration or other declaration of covenants applicable to such Unit.  Each Owner shall also be responsible for maintaining the landscaping within that portion of any adjacent Common Area or right of way of a Public Street lying between the Unit boundary and any wall, fence or curb located on the Common Area or right-of-way within ten (10) feet of the Unit boundary; provided, however, that the Owner shall have no right to remove trees, shrubs or similar vegetation from this area without prior approval of the Declarant or ARB, as the case may be, pursuant to Articles IV & VI.

                7.2           Maintenance of Neighborhood Property.  Each Neighborhood Association, if any, shall maintain its common property and any other property for which it has maintenance responsibility in a manner consistent with the Community Documents and the Community-Wide Standard.  Each Neighborhood Association, if any, shall also be responsible for maintaining the landscaping within that portion of any adjacent Common Area or public right of way lying between the boundary of its common property and any wall, fence or curb located on the Common Area or public right-of-way within ten (10) feet of the Neighborhood’s boundary; provided, that the Neighborhood Association shall have no right to remove trees, shrubs or similar vegetation from this area without prior approval of the ARB or Declarant pursuant to Articles IV & VI.  The Board may, by duly adopted Resolution, declare the Owners within each Neighborhood to be responsible for paying, through Neighborhood Assessments, the costs of operating, maintaining and insuring designated portions of the Area of Common Responsibility within or adjacent to such Neighborhood.  This may include, without limitation, the costs of maintaining any signage, entry features, right of way and greenspace between the Neighborhood and the adjacent Public Streets within the Neighborhood, and the river or property fronting such river within the Neighborhood, regardless of ownership and regardless of the fact that such maintenance may be performed by the Association; provided, however, that all Neighborhoods that are similarly situated shall be treated in a similar manner.  The Association may assume maintenance responsibility for property within any Neighborhood, in addition to that designated by any Supplemental Declaration, either by agreement with the Neighborhood or because, in the opinion of the Board, the level and quality of service provided is not consistent with the Community-Wide Standard.  All costs of maintenance pursuant to this Section 7.2 plus an administrative charge equal to fifteen percent (15%) of such costs shall be assessed as a Neighborhood Assessment only against the Units within the Neighborhood to which the services are provided.

                7.3           Repair & Replacement of Unit Improvements.  Unless otherwise specifically provided in the Community Documents or in other instruments creating and assigning maintenance responsibility, each Owner’s responsibility to maintain such Owner’s Unit shall include the responsibility to repair and replace the improvements constructed or installed within such Unit in order to maintain the Unit in a manner consistent with the Community-Wide Standard.  By accepting a deed or other instrument conveying title to a Unit, each Owner shall be deemed to have covenanted and agreed to carry property insurance for the full replacement cost of all insurable improvements constructed or installed within such Owner’s Unit, less a reasonable deductible.  The Association may, but shall not be obligated to, assume responsibility for obtaining and maintaining any insurance coverage on behalf of the Owners, the premiums for such insurance shall be included in a Specific Assessment levied against each benefited Unit and its Owner.  Each Owner shall be further deemed to have covenanted and agreed that in the event of damage to or destruction of structures constructed on or installed within such Owner’s Unit, the Owner shall promptly repair, restore or replace such structures in manner consistent with the original construction or such other plans and specifications as are approved in accordance with Article IV.  Alternatively, the Owner may clear the Unit and maintain it in a neat and attractive, landscaped condition consistent with the Community-Wide Standard.  The Owner shall pay any and all costs not covered by insurance proceeds.  This Section 7.3 shall apply to any Neighborhood Association responsible for common property within the Neighborhood in the same manner as if the Neighborhood Association was an Owner and the common property was a Unit.  Additional recorded covenants applicable to any Neighborhood may establish more stringent requirements for insurance and more stringent standards for rebuilding or reconstructing structures within the Units within such Neighborhood and for clearing and maintaining the Units in the event the structures are not rebuilt or reconstructed.

                7.4           Repair & Replacement of Common Area Improvements.  Unless otherwise specifically provided in the Community Documents or in other instruments creating and assigning maintenance responsibility, the Association shall be responsible for the maintenance, repair and replacement of all improvements constructed or installed within the Common Area in accordance with the requirements of Section 9.4 and Section 9.7.

Part Three
Community Governance & Administration

                This Declaration establishes the Association as the organization and legal entity through which each Owner may participate in the governance and administration of the Community.  The Association has reserved certain rights for the Members of the Association.  As such, the Association will not take certain actions where such rights have been reserved to the Members except in the case of an emergency.

Article VIII
Association & Members

                8.1           Functions of Association.  The Association is the corporation that holds or will hold title to the Common Area, and is responsible for the management, maintenance, operation and control of the Area of Common Responsibility.  The Association is also the organization charged with the primary responsibility for the enforcement of the Community Documents.  The Association shall perform its functions in accordance with the Community Documents and the laws of Belize.

                8.2           Membership.  Every Owner shall be a Member of the Association.  There shall be only one (1) membership per Unit, which shall be appurtenant to, and inseparable from, such Unit.  If a Unit is owned by more than one Person or Entity, all co-Owners shall share the privileges of such membership, subject to reasonable regulation by the Board of Directors and the restrictions on voting set forth in Section 8.4 and in the Memorandum of Association.  All co-Owners of a Unit shall be jointly and severally obligated to perform the responsibilities of a Unit Owner.  The membership rights of an Owner, which is an Entity, may be exercised by any Person designated from time to time by such Owner in a written instrument provided to the Secretary of the Association.

                8.3           Classes of Membership.  The Association shall have two classes of Members, more particularly described as follows: 

                (a)           Class “A” Members.  Class “A” Members shall include all of the Owners except the Class “B” Member, if any.  Class “A” Members shall have one (1) equal vote for each Unit in which they hold the interest required for membership under Section 8.2, provided, however, that there shall be only one (1) vote per Unit.  No vote may be exercised for any Unit or other land within the Community that is exempt from Assessments pursuant to Section 10.13.  Class “A” Members may exercise their voting rights only as provided in Section 8.4.

                (b)           Class “B” Member.  The sole Class “B” Member shall be Declarant.  Declarant may appoint a majority of the members of the Board of Directors during the Declarant Control Period, as specified in the Memorandum of Association.  Additional rights of Declarant are specified in the relevant provisions of the Community Documents.  After termination of the Declarant Control Period, the Declarant shall retain the right to disapprove certain actions of the Board and committees as provided in the Memorandum of Association.  The Class “B” membership of Declarant shall terminate upon the earlier of: (i) two (2) years after expiration of the Declarant Control Period pursuant to Article III of the Memorandum of Association; or (ii) when, in its discretion, Declarant so determines and declares in a recorded instrument.  Upon termination of the Class “B” membership of Declarant, Declarant shall become a Class “A” Member entitled to exercise the voting rights of a Class “A” Member for each Unit that Declarant owns.

                8.4           Exercise of Voting Rights.  In any situation in which there is more than one Owner of a Unit, the vote for such Unit shall be exercised as the co-Owners determine among themselves and notify the Secretary of the Association in writing prior to the vote being taken.  The voting rights of an Owner that is an Entity may be exercised by any Person designated from time to time by such Owner in a notice provided to the Secretary of the Association.  Absent such notice, the voting rights appurtenant to any Unit shall be suspended if more than one Person or Entity seeks to exercise such rights.

                8.5           Neighborhoods, Voting Members & Voting Groups.

                (a)           Neighborhoods.  Any Neighborhood, acting either through a Neighborhood Committee elected as provided in the Memorandum of Association or through a Neighborhood Association, if any, may request that the Association provide a higher level of service than that which the Association generally provides to all Neighborhoods or may request that the Association provide special services for the benefit of Units in such Neighborhood.  Upon the affirmative vote, written consent, or a combination thereof, of Owners of a majority of the Units within such Neighborhood, the Association shall provide the requested services to the extent reasonably available.  The cost of such services, which may include a reasonable administrative charge in such amount as the Board of Directors deems appropriate (provided any such administrative charge shall apply at a uniform per-Unit rate to all Neighborhoods receiving such service), shall be assessed against the Units within such Neighborhood as a Neighborhood Assessment.  Exhibit A to this Declaration, and each Supplemental Declaration submitting all or portions of the Additional Land to this Declaration, may, but shall not be obligated to, assign the submitted property to a specific Neighborhood (by name or other designation), which Neighborhood may be then existing or newly created.  So long as the Declarant owns any Unit in the Community, Declarant may unilaterally amend this Declaration or any Supplemental Declaration to redesignate Neighborhood boundaries.  However, two or more existing Neighborhoods shall not be combined without the consent of the Owners of a majority of the Units in the affected Neighborhoods.

                (b)           Voting Members.  Each Neighborhood shall elect a Voting Member who shall be responsible for casting all votes attributable to Units owned by Class “A” Members in the Neighborhood on all Association matters requiring a membership vote, except as otherwise specified in this Declaration or the Memorandum of Association.  In addition, each Neighborhood shall elect an alternate Voting Member who shall be responsible for casting such votes in the absence of the Voting Member.  The first election of a Voting Member and alternate Voting Member from each Neighborhood shall occur within one (1) year after the sale of the first Unit in the Neighborhood to a Person or Entity other than a Builder.  Thereafter, the Board of Directors shall call for an election of Voting Members and alternates on an annual basis, either by written ballots cast by mail, computer, or at a physical meeting of the Class “A” Members within such Neighborhood, as the Board shall determine.  Upon written petition signed by Class “A” Members holding at least ten percent (10%) of the votes attributable to Units within any Neighborhood, the election for such Neighborhood shall be held at a physical meeting.  Candidates for election as Voting Members may be nominated by the Board, a nominating committee, which the Board may appoint, or from the floor at any meeting at which such election is to be held.  The presence, in person or by proxy, or the filing of ballots by Class “A” Members representing at least twenty-five percent (25%) of the total Class “A” votes attributable to the Units in the Neighborhood shall constitute a quorum at any Neighborhood meeting or election.  In the event of a failure to obtain a quorum or vacancy in such positions for any Neighborhood, the Board may appoint a Voting Member or alternate Voting Member to represent such Neighborhood until a successor is elected.  For any Neighborhood election, each Class “A” Member shall be entitled to one equal vote for each Unit, which such Owner owns in the Neighborhood.  The candidate who receives the greatest number of votes shall be elected as Voting Member and the candidate receiving the next greatest number of votes shall be elected as the alternate Voting Member.  The Voting Member and the alternate Voting Member shall serve a term of one (1) year and until their successors are duly elected.  Any Voting Member may be removed, with or without cause, upon the vote or written petition of the Owners of a majority of the total number of Units owned by Class “A” Members in the Neighborhood, which the Voting Member represents.  Until such time as the Board first calls for election of a Voting Member for any Neighborhood, the Owners within such Neighborhood shall be entitled personally to cast the votes attributable to their respective Units on any issue requiring a vote of the Members pursuant to any provision of the Community Documents.

                (c)           Voting Groups.  Declarant may designate Voting Groups consisting of one or more Neighborhoods for the purpose of electing members of the Board of Directors.  Voting Groups may be designated to ensure groups with dissimilar interests are represented on the Board and to avoid some Voting Members being able to elect all members of the Board due to the number of Units in such Neighborhoods.  Following termination of the Declarant Control Period, the number of Voting Groups within the Community shall not exceed the total number of directors to be elected by the Class “A” Members pursuant to the Memorandum of Association.  The Voting Members representing the Neighborhoods within each Voting Group shall vote on a separate slate of candidates for election to the Board.  Each Voting Group is entitled to elect the number of directors specified in the Memorandum of Association.

Diagram 8.1  Association Organizational Structure

                Diagram 8.1 illustrates the organizational structure of the Association and the manner in which Voting Members and Voting Groups will elect the Board of Directors after the Declarant Control Period ends.  The number of directors (five), Neighborhoods (five) and Voting Groups (three) shown in the illustration are for demonstrative purposes only; the actual number may be different.

                Declarant shall establish Voting Groups, if at all, not later than the date of expiration of the Declarant Control Period by filing with the Association and Recording a Supplemental Declaration identifying each Voting Group by legal description or other means such that the Units within each Voting Group may easily be determined.  Such designation may be amended from time to time by Declarant, acting alone, at any time prior to the expiration of the Declarant Control Period.  After expiration of Declarant’s right to expand the Community pursuant to Article XI, the Board of Directors shall have the right to record or amend such Supplemental Declaration upon the vote of a majority of the total number of directors and approval of Voting Members representing a majority of the total number of Neighborhoods and a majority of the total Class “A” votes in the Association.  Neither the recording nor the amendment of such Supplemental Declaration by Declarant shall constitute an amendment to this Declaration, and no consent or approval of any Person or Entity shall be required except as stated in this paragraph.  Until such time as Voting Groups are established, the entire Community shall constitute a single Voting Group. After a Supplemental Declaration establishing Voting Groups has been Recorded, any and all portions of the Community, which are not assigned to a specific Voting Group, shall constitute a single Voting Group.

Article IX
Association Powers & Responsibilities

                9.1           Acquisition of Property by Board of Directors.  The Association, through the actions of the Board of Directors, may acquire, hold, lease (as lessor or lessee), operate and dispose of tangible and intangible personal property and real property.  The Association may enter into leases, licenses or operating agreements for portions of the Common Area, for such consideration or no consideration as the Board deems appropriate, to permit use of such portions of the Common Area by community organizations and by others for the provision of goods or services for the general benefit or convenience of Owners and other occupants of the Units.

                9.2           Conveyance of Property to Association by Declarant.  Declarant, and its designees, may convey to the Association, and the Association shall accept, personal property and fee-simple title to, leasehold estates or other interests in any real property, improved or unimproved, described in Exhibit A.  Declarant shall (to the extent reasonable) convey the initial Common Area to the Association prior to the conveyance of a Unit to any Person or Entity other than a Builder.  Upon Declarant’s written request, the Association shall reconvey to Declarant any unimproved portions of the Common Area, which Declarant originally conveyed to the Association for no consideration, to the extent conveyed by Declarant in error, or needed by Declarant to make minor adjustments in property lines.

                9.3           Regulation of Common Area.  The Association shall be responsible for the management, operation and control of the Common Area, subject to any covenants and restrictions set forth in this Declaration or the deed or other instrument conveying such property to the Association.  The Board of Directors may, by a duly adopted Resolution of general application, adopt or amend such reasonable Rules & Regulations governing the use of the Common Area as it deems to be in the best interests of the health, safety and welfare of the Owners and other occupants of the Units.

                9.4           Maintenance of Area of Common Responsibility.  The Association shall maintain the Area of Common Responsibility in accordance with the Community-Wide Standard, including, but not limited to, the following:

                (a)           all portions of the Common Area and any landscaping, structures or other improvements located thereon;

                (b)           landscaping within the rights of way of the Public Streets within the Community, or within the public rights of way adjacent to the Community for which the Association has accepted responsibility by written agreement;

                (c)           such portions of any additional property included within the Area of Common Responsibility as may be designated by this Declaration, any Supplemental Declaration, any  Covenant to Share Costs, or any contract or agreement for maintenance thereof entered into by the Association;

                (d)           all community reserves located within the Community, including for example, improvements and equipment installed therein or used in connection therewith; and

                (e)           any property and facilities that Declarant owns and makes available, on a temporary or permanent basis, for the primary use of the Association and its Members.  Such property and facilities shall be identified by written notice from Declarant to the Association and shall remain part of the Area of Common Responsibility until such time as Declarant revokes such privilege of use and enjoyment by written notice to the Association.  The Association may maintain other property, which it does not own, including, without limitation, property dedicated to the public, if the Board of Directors determines that such maintenance is necessary or desirable to maintain the Community-Wide Standard.  The Association shall not be liable for any damage or injury occurring on or arising from the condition of property that it does not own or lease, except to the extent that it has been negligent in the performance of its maintenance responsibilities.  The Association shall maintain the facilities and equipment within the Area of Common Responsibility in continuous operation, except for any periods necessary, as determined in the Board’s sole discretion, to perform necessary maintenance, repair or replacement, unless Voting Members representing seventy-five percent (75%) of the Class “A” votes in the Association and the Class “B” Member, if any, agree in writing to discontinue such operation.  Except as provided above, the Area of Common Responsibility shall not be reduced, except with Declarant’s prior written approval as long as Declarant owns any property described in Exhibit A.  The costs associated with the maintenance, repair and replacement of the improvements located with the Area of Common Responsibility shall be a Common Expense; provided, the Association may seek reimbursement from the owners of, or other Persons or Entities responsible for certain portions of the Area of Common Responsibility pursuant to this Declaration, the Covenant to Share Costs, other recorded covenants, or agreements with the owners thereof.  Maintenance, repair and replacement of improvements within the Limited Common Areas shall be a Neighborhood Expense levied against the Units within the Neighborhood or Neighborhoods or a Specific Assessment against the Unit or Units to which the Limited Common Areas are assigned, notwithstanding that the Association may be responsible for performing such maintenance hereunder.

                9.5           Required Insurance Coverages.  The Association, acting through the Board of Directors or its duly authorized agent, shall obtain and maintain the following insurance policies and coverages, if reasonably available, or if not reasonably available, the most nearly equivalent coverages that are reasonably available:

                (a)           Blanket property insurance covering “risks of direct physical loss” on a “special form” basis (or comparable coverage by whatever name denominated) for all insurable improvements within the Common Area, and within the Area of Common Responsibility to the extent that Association has assumed the responsibility for the repair and replacement of such improvements in the event of a casualty.  If such coverage is not generally available at reasonable cost, then “broad form” coverage may be substituted.  All property insurance policies obtained by the Association shall have policy limits sufficient to cover the full replacement cost value of the insured improvements under current district laws and building codes.

                (b)           Commercial general liability insurance with regard to the Area of Common Responsibility and the operations of the Association, insuring the Association and the Members for damage or injury caused by the negligence of the Association, any of the Members, or employees, agents, or contractors while acting on the Association’s behalf.  If generally available at reasonable cost, such coverage (including primary and any umbrella coverage) shall have a limit of at least One Million U.S. Dollars (U.S.$1,000,000.00) per occurrence with respect to bodily injury, personal injury, and property damage; provided, however, that should additional coverage and higher limits be available, at reasonable cost, that a reasonably prudent person would obtain and maintain, then the Association shall obtain and maintain such additional coverages or higher limits.

                (c)           Workers compensation insurance and employers liability insurance, if and to the extent required by the laws of Belize.

                (d)           Directors’ and officers’ liability coverage.

(e)           Flood insurance, if necessary and if required by law in Belize to the extent readily available.

                (f)            Such additional insurance as the Board, in the exercise of its business judgment, determines to be prudent.  In addition, the Association shall, if so specified in a Supplemental Declaration applicable to any Neighborhood, obtain and maintain property insurance on the insurable improvements within such Neighborhood, which property insurance shall comply with the requirements of Paragraph 9.5(a) and Section 9.6.  Any such policies shall provide for a certificate of insurance to be furnished, upon request, to the Owner of each Unit within the Neighborhood.

                Premiums for all insurance covering casualties to, or liability arising from, the Area of Common Responsibility shall be Common Expenses, except that: (i) premiums for property insurance on Units within a Neighborhood shall be a Neighborhood Expense; and (ii) premiums for insurance on Limited Common Areas may be included in the Neighborhood Expenses of the Neighborhood or Neighborhoods; however, if no Neighborhoods have been established, then such costs shall be deemed to be Specific Assessments and shall be levied against the Unit or Units to which such Limited Common Areas are assigned, unless the Board reasonably determines that other treatment of the premiums is more equitable and appropriate.

9.6           Insurance Policy Requirements.  The Association, acting through the Board of Directors, shall retain a professional insurance consultant to conduct an annual review of the sufficiency of the Association’s insurance policies and coverages, and such consultant shall be familiar with insurable replacement costs in Belize.  All Association insurance policies shall provide for a certificate of insurance to be furnished to the Association and, upon request and the payment of the then current copying fee and administrative charge, to each Member insured.  The policies may contain a reasonable deductible, and the amount thereof shall not be subtracted from the face amount of the policy in determining whether the policy limits satisfy the requirements of Paragraph 9.5(a).  In the event of an insured loss, the deductible shall be treated as a Common Expense or a Neighborhood Expense, as applicable, in the same manner as the premiums for the applicable insurance coverage.  However, if the Board reasonably determines, after the Members have been notified and given an opportunity to be heard in accordance with the Memorandum of Association, that the loss is the result of the negligence or willful misconduct of one or more Owners, their household members, guests, invitees, or lessees, then the Board may levy the full amount of such deductible against the Unit or Units of such Owner or Owners as a Specific Assessment.  All insurance coverage obtained by the Board shall: (a) be written by a company that is licensed and authorized to do business in Belize; (b) be written in the name of the Association, acting as trustee for the benefited parties (policies on the Common Areas shall be for the benefit of the Association and its Members); (policies secured on behalf of a Neighborhood shall be for the benefit of the Owners of Units within the Neighborhood and their Chargees, as their interests may appear); (c) not be brought into contribution with insurance purchased by Owners, occupants, or their Chargees individually; (d) contain an inflation guard endorsement; (e) include an agreed amount endorsement, if the policy contains a co-insurance clause; (f) provide that each Owner is an additional insured with respect to liability arising out of such Owner’s interest in the Common Area as a Member (provided, this provision shall not be construed as giving an Owner any ownership interest in the Common Area); (g) provide that the insurer waives its rights to require the Association to transfer its recovery rights against any Owner or household member of an Owner to the insurer (formerly called a “waiver of subrogation”); (h) include an endorsement precluding cancellation, invalidation, suspension, or non-renewal by the insurer on account of any of the Owners, or on account of any curable defect or violation, without thirty (30) days’ prior written demand to the Association to cure the defect or violation; and (i) include an endorsement precluding cancellation, invalidation, or condition to recovery under the policy on account of any act or omission of any of the Owners, unless such Owner is acting within the scope of the Owner’s authority, as an Officer or Director.  In addition, the Board shall use reasonable efforts to secure insurance policies that list the Owners as additional insureds and provide: (j) a waiver of subrogation as to any claims against the Board, and the Association’s officers, employees, and property manager, if any, the Owners and the occupants of the Units, and their servants, agents, and guests; (k) a waiver of the insurer’s rights to repair and reconstruct instead of paying cash; (l) an endorsement excluding the Owners’ individual insurance policies from consideration under any “other insurance” clause; (m) an endorsement requiring at least thirty (30) days’ prior written notice to the Association of any cancellation, substantial modification, or non-renewal; (n) a cross-liability provision; and (o) a provision vesting in the Board the exclusive authority to adjust losses; provided, however, no Chargee having an interest in such losses may be prohibited from participating in the settlement negotiations, if any, related to the loss.

                9.7           Restoration of Improvements after Casualty.  In the event of any casualty to the improvements within the Common Area or other property which the Association is obligated to insure, the Board of Directors or its duly authorized agent shall file and adjust all insurance claims and obtain reliable and detailed estimates of the cost of restoring the property to substantially the condition in which it existed before such casualty, allowing for changes or improvements necessitated by changes in applicable laws and ordinances (and building codes) in Belize.  Damaged improvements within the Common Area shall be restored or replaced, unless the Voting Members representing at least seventy-five (75%) of the total Class “A” votes, and the Class “B” Member, if any, decide within sixty (60) days after the loss not to restore or replace such improvements.  If either the insurance proceeds or estimates of the loss, or both, are not available to the Association within such sixty-day period, then the period shall be extended until such funds or information are available.  However, such extension shall not exceed sixty (60) additional days.  Chargee shall have the right to participate in the determination of whether the damaged or destroyed improvements within the Common Area shall be restored or replaced.  If a decision is made not to restore or replace the damaged improvements, and no alternative improvements are authorized, the affected land shall be cleared of all debris and ruins, and thereafter shall be maintained by the Association in a neat and attractive, landscaped condition consistent with the Community-Wide Standard.  Any insurance proceeds remaining after paying the costs of restoration or replacement, or after such settlement as is necessary and appropriate, shall be paid to any Chargees in proportion to their interests in such affected property. If all such Chargees are paid in full and a remaining balance exists, such sums shall be retained by the Association for the benefit of the Members or the Owners of Units within the insured Neighborhood, as applicable, and placed in a capital improvements account.  This is a covenant for the benefit of the Chargees, and may be enforced by the Chargee of any affected Unit.  If insurance proceeds are insufficient to cover the costs of restoration or replacement, the Board may, without a vote of the Voting Members, levy Special Assessments to cover the shortfall against those Owners responsible for the premiums for the applicable insurance coverage under Paragraph 9.5(a)[the Owners].

                9.8           Enforcement of Community Documents.  Every Owner and occupant of a Unit shall comply with the Community Documents.  The Board of Directors may impose sanctions on the Owner and/or occupant of a Unit for a violation of the Community Documents after notice and a hearing in accordance with the procedures set forth in the Memorandum of Association.  Such sanctions may include, without limitation: (a) the imposition of reasonable monetary fines, as specified in a Resolution of general application duly adopted by the Board, which fines shall be secured by the lien for Assessments upon the violator’s Unit (in the event that any occupant of a Unit, or the guest or invitee of the Owner or occupant of a Unit, violates the Community Documents and a fine is imposed, the fine shall first be assessed against the violator; provided, however, if such fine is not paid by the violator within the time period set by the Board, the Owner shall pay the fine upon receipt of notice from the Board); (b) the suspension of an Owner’s right to vote; (c) the suspension of the violator’s right to use any recreational facilities within the Common Area; provided, however, nothing herein shall authorize the Board to limit ingress or egress to or from a Unit; (d) the suspension of any services provided by the Association to an Owner or the Owner’s Unit, if the Owner is more than thirty (30) days delinquent in paying any Assessment or other charge owed to the Association; (e) the exercise of self-help to abate any violation of the Community Documents in a non-emergency situation, provided such self-help measure is taken without breaching the peace; (f) requiring an Owner, at such Owner’s sole cost and expense, to remove from the Owner’s Unit any structure or improvement constructed or installed in violation of the Community Documents and to restore and/or reconstruct the Unit to its previous condition and, upon failure of the Owner to do so, the Board or its designee shall have the right, but not the obligation, to enter the Unit, remove such structure or improvement and restore the Unit to substantially the same condition as previously existed prior to the violation of the Community Documents and any such action shall not be deemed to be a trespass; (g) without liability to any Person or Entity, precluding any contractor, subcontractor, agent, employee or other invitee of an Owner or occupant of a Unit who fails to comply with the terms and provisions of Article IV & VI and the Guidelines from continuing or performing any further activities in the Community; and (h) levying against one or more Units a Specific Assessments to cover the costs incurred by the Association to bring a Unit into compliance with the Community Documents.  In addition, the Board may take the following enforcement procedures to ensure compliance with the Community Documents without the necessity of compliance with the procedures set forth in the Memorandum of Association: (i) exercising self-help in any bona fide emergency; or (j) bringing suit at law to recover monetary damages, or in equity to enjoin any violation, or both.  In addition to any other enforcement rights, if an Owner fails to properly perform such Owner’s maintenance responsibilities, the Association may record a notice of such violation or perform such maintenance responsibilities and levy all costs thereof plus an administrative charge equal to fifteen percent (15%) of such costs against such Owner’s Unit and such Owner as a Specific Assessment.  If a Neighborhood Association fails to perform its maintenance responsibilities, the Association may perform such maintenance and assess the costs thereof as a Neighborhood Assessment or Specific Assessment against all Units within such Neighborhood.  Except in a bona fide emergency, the Association shall provide the Owner or Neighborhood Association, as applicable, reasonable notice and an opportunity to cure the problem prior to taking such enforcement action.  All remedies set forth in the Community Documents shall be cumulative of any remedies available at law or in equity.  In any action to enforce the Community Documents, if the Association prevails, it shall be entitled to recover all costs, including, without limitation, all court costs and reasonable attorneys’ fees incurred in such action, regardless of whether a lawsuit is filed and throughout all appellate levels.

9.9           Board of Directors’ Discretion to Take Action.  The Board of Directors shall have the discretion to decide whether to take enforcement action in any particular case; provided, however, that the Board shall not be arbitrary or capricious in taking enforcement action.  Without limiting the generality of the foregoing sentence, the Board may determine that, under the circumstances of a particular case that: (a) the Association’s position is not strong enough to justify pursuing enforcement action; or (b) the covenant, restriction or rule being enforced is, or is likely to be construed as, inconsistent with applicable law; or (c) although a technical violation may exist or may have occurred, it is not of such a material nature as to be objectionable to a reasonable person or to justify expending the Association’s resources to pursue enforcement action; or (d) that it is not in the Association’s best interests, based upon hardship, expense, or other reasonable criteria, to pursue enforcement action.  The Board’s decision not to pursue enforcement action in a particular case shall not be construed as a waiver of the right of the Association to pursue enforcement action at a later time, under other circumstances, or preclude the Association from enforcing any other provision of the Community Documents.  The Association, by contract or other agreement, may enforce applicable laws of Belize, and permit the  judicial and quasi-judicial (or any other) enforcement agencies to enforce the provisions of the Community Documents for the benefit of the Association and the Members.

                9.10         Implied Rights; Board Authority.  The Association may exercise any right or privilege given to it expressly by the Community Documents, or reasonably implied from, or reasonably necessary to effectuate any such right or privilege.  All rights and powers of the Association may be exercised by the Board of Directors without a vote of the Members, except where the Community Documents or applicable laws of the State specifically require a vote of the Members.  The Board may initiate, defend, settle, or intervene on behalf of the Association in mediation, binding or non-binding arbitration, litigation, or administrative proceedings in matters pertaining to the Area of Common Responsibility, enforcement of the Community Documents, or any other civil claim or action involving the Community.  However, the Community Documents shall not be construed as creating any independent legal duty to initiate litigation on behalf of or in the name of the Association or the Members.  In exercising the rights and powers of the Association, making decisions on behalf of the Association, and conducting the Association’s affairs, the Board shall be subject to, and its actions shall be judged in accordance with, the standards set forth in the Memorandum of Association.

                9.11         Indemnification of Directors, Officers & Others.  Subject to applicable laws of Belize, the Association shall indemnify every Director, Officer and committee member against all damages and expenses, including attorneys’ fees, reasonably incurred in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which such Person may be a party by reason of being or having been a Director, Officer or committee member.  The Directors, Officers and committee members shall not be liable for any mistake of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or actions taken in bad faith.  The Directors and Officers shall have no personal liability with respect to any contract or other commitment made or action taken in good faith on behalf of the Association (except to the extent that such Directors or Officers may also be Members).  The Association shall indemnify, release, defend and hold each Director, Officer and committee member harmless from and against any and all liability to others on account of any such contract, commitment or action.  This right to be indemnified shall not be exclusive of any other rights to which any present or former Director, Officer or committee member may be entitled.  The Association shall, as a Common Expense, maintain adequate general liability and officers’ and directors’ liability insurance to fund this obligation in accordance with Section 9.5(d) of Article IX, if such insurance is reasonably available.

                9.12         Responsibility for Personal Safety & Security.  Every Owner and occupant of a Unit, and their respective guests and invitees, shall be responsible for their own personal safety and the security of their (personal, mixed and real) property within the Community.  The Association may, but shall not be obligated to, maintain or support certain activities within the Community designed to enhance the level of safety or security that each Person provides for such Person’s self or property. 

Neither Declarant nor the Association shall be deemed to be an insurer or guarantor of the safety of any Person or the security of any Person’s property within the Community; nor shall either Declarant or the Association be held liable for any loss or damage by reason of failure to provide adequate security or the ineffectiveness of any security measures undertaken.  No representation or warranty is made or shall be implied that any systems or measures, including any mechanism or system for limiting access to the Community, cannot be compromised or circumvented, nor that any such systems or security measures undertaken will in all cases prevent injury or loss or provide the detection or protection for which the system is designed or intended.  Every Owner shall be responsible for informing all occupants, tenants, invitees, licensees or guests of such Owner’s Unit that Declarant, the Association, the Board of Directors and the members of committees are not insurers or guarantors of personal safety or the security of (real, personal or mixed) property, and that each Person within the Community assumes all risks of personal injury and loss or damage to property, including the Units and their contents, resulting from the acts of third parties. 

ALL OWNERS AND OCCUPANTS OF ANY UNIT, TENANTS, GUESTS AND INVITEES OF ANY OWNER OR OCCUPANT, AS APPLICABLE, ACKNOWLEDGE THAT THE ASSOCIATION AND ITS BOARD OF DIRECTORS, DECLARANT, DECLARANT’S OFFICERS, PREDECESSOR OFFICERS, DIRECTORS, PREDECESSOR DIRECTORS, OR ANY SUCCESSOR DECLARANT AND THE ARCHITECTURAL REVIEW BOARD DO NOT REPRESENT OR WARRANT THAT ANY FIRE PROTECTION SYSTEM, BURGLAR ALARM SYSTEM OR OTHER SECURITY SYSTEM OR MEASURE, INCLUDING ANY MECHANISM OR SYSTEM FOR LIMITING ACCESS TO THE PROPERTIES MAY NOT BE COMPROMISED OR CIRCUMVENTED, THAT ANY FIRE PROTECTION OR BURGLAR ALARM SYSTEMS OR OTHER SECURITY SYSTEMS OR MEASURES WILL PREVENT LOSS BY FIRE, SMOKE, BURGLARY, THEFT, HOLD‑UP, OR OTHERWISE, NOR THAT FIRE PROTECTION OR BURGLAR ALARM SYSTEMS OR OTHER SECURITY SYSTEMS OR MEASURES WILL IN ALL CASES PROVIDE THE DETECTION OR PROTECTION FOR WHICH THE SYSTEM IS DESIGNED OR INTENDED. EACH OWNER AND OCCUPANT OF ANY UNIT, AND EACH TENANT, GUEST AND INVITEE OF AN OWNER OR OCCUPANT, AS APPLICABLE, ACKNOWLEDGES AND UNDERSTANDS THAT THE ASSOCIATION, ITS BOARD OF DIRECTORS AND COMMITTEES, DECLARANT, DECLARANT’S OFFICERS, PREDECESSOR OFFICERS, DIRECTORS, PREDECESSOR DIRECTORS AND ALL SUCCESSOR DECLARANTS ARE NOT INSURERS AND THAT EACH OWNER AND OCCUPANT OF ANY UNIT AND EACH TENANT, GUEST AND INVITEE OF ANY OWNER OR OCCUPANT ASSUMES ALL RISKS FOR LOSS OR DAMAGE TO PERSONS, TO UNITS AND TO THE CONTENTS OF UNITS AND FURTHER ACKNOWLEDGES THAT THE ASSOCIATION, ITS BOARD OF DIRECTORS AND COMMITTEES, DECLARANT, DECLARANT’S OFFICERS, PREDECESSOR OFFICERS, DIRECTORS, PREDECESSOR DIRECTORS AND ALL SUCCESSOR DECLARANTS HAVE MADE NO REPRESENTATIONS OR WARRANTIES NOR HAS ANY OWNER, OCCUPANT, TENANT, GUEST OR INVITEE RELIED UPON ANY REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, RELATIVE TO ANY FIRE AND/OR BURGLAR ALARM SYSTEMS OR OTHER SECURITY SYSTEMS RECOMMENDED OR INSTALLED OR ANY SECURITY MEASURES UNDERTAKEN WITHIN THE PROPERTIES.

                9.13         Association Powers Regarding Neighborhood Associations.  The Board of Directors shall have the power to veto any action taken or contemplated to be taken by any Neighborhood Association that the Board reasonably determines to be adverse to the interests of the Association or the Members, or inconsistent with the Community-Wide Standard.  The Association also shall have the power to require specific action to be taken by any Neighborhood Association in connection with its obligations and responsibilities, such as requiring specific maintenance, repairs or aesthetic changes to be effectuated, and requiring that a proposed budget include certain items and that expenditures be made therefor.  A Neighborhood Association shall take appropriate action, as required by the Board in a written notice to the Neighborhood Association, within the reasonable timeframe set by the Association in such notice.  If the Neighborhood Association fails to comply with the Association’s request, the Association shall have the right, but not the obligation, to take such action on behalf of the Neighborhood Association, and to levy a Neighborhood Assessment or Specific Assessments against the Units or Neighborhood within such Neighborhood to cover the actual costs, as well as an administrative charge and fines.

                9.14         Additional Services Provided by Association.  The Association may provide additional services and facilities for the Members and their Units, and shall be authorized to enter into and terminate contracts or agreements with other Persons or Entities, including Declarant, to provide such additional services and facilities.  The Board of Directors may, by a duly adopted Resolution of general application, establish and charge user or service fees for any such additional services and facilities provided, or may include the costs thereof in the Association’s budget as a Common Expense, if the additional services or facilities are provided to all Units.  Such additional services and facilities may include, without limitation, landscape maintenance, pest control, cable television, security, caretaker, transportation, fire protection, utilities, and similar services and facilities.  Nothing in this Section 9.14 shall be construed as a representation by Declarant or the Association as to what, if any, additional services or facilities may be provided.  In addition, the Board shall be permitted to modify or cancel existing contracts or agreements for additional services or facilities, in its sole discretion, unless it is otherwise required to provide such services or facilities by the Community Documents.  No Owner shall be exempt from the obligation to pay such Owner’s share of the costs of such additional services or facilities, as a Common Expense, by refraining from the use of any services or facilities provided to all of the Owners or the Units.

                9.15         Relationships with Other Properties.  The Association may enter into contractual agreements or covenants to share costs with any neighboring property to contribute funds for, among other things, shared or mutually beneficial property or services and/or a higher level of maintenance for the Area of Common Responsibility.

9.16         Facilities & Services May be Opened to Public.  The Association may permit certain facilities and land within the Common Area to be opened for the use and enjoyment of the general public.  Such Common Area facilities and lands may include, without limitation: greenbelts, trails and paths, parks, and other neighborhood spots conducive to gathering and interaction, the rights of way of the Private and/or Public Streets and the medians within them, and sidewalks.  Declarant may designate such facilities and lands as open to the general public at the time Declarant declares such facilities and areas a part of the Area of Common Responsibility, or the Board of Directors may make such designation at any time thereafter.

Article X
Association Finances

                10.1         Budgeting for Common Expenses.  At least sixty (60) days before the beginning of each fiscal year, the Board of Directors shall cause the preparation of a budget of the estimated Common Expenses for the coming fiscal year, including any contributions to be made to the Reserves pursuant to Section 10.2.  The budget shall also reflect the sources and estimated amounts of funds to cover such expenses, which may include any surplus revenue to be applied from prior years, any revenue expected from sources other than Assessments, as well as the revenue to be raised through the levy of General Assessments and Special Assessments against the Units as authorized in Section 10.4 and Section 10.5, respectively.

                10.2         Budgeting for Reserves.  At least sixty (60) days before the beginning of each fiscal year, the Board of Directors shall cause the preparation and review of a budget for funding the Reserves for the repair and replacement of capital assets located within the Area of Common Responsibility and for each Neighborhood for which the Association maintains the capital assets as a Neighborhood Expense.  The Reserve budget shall take into account the number and nature of such capital assets, and the expected life and repair or replacement cost of each asset.  The Board shall include in the Common Expenses stated in the budget adopted pursuant to Section 10.1, or in the Neighborhood Expense budgets adopted pursuant to Section 10.3, as appropriate, a capital contribution to fund Reserves sufficient to meet the anticipated costs of repairing or replacing such capital assets over the coming fiscal year or years.

                10.3         Budgeting for Neighborhood Expenses.  At least sixty (60) days before the beginning of each fiscal year, the Board of Directors shall cause the preparation of a separate budget covering the estimated Neighborhood Expenses for each Neighborhood on whose behalf Neighborhood Expenses are expected to be incurred during the coming fiscal year.  Each such budget shall include any costs for additional services or a higher level of services, which the Owners of Units in such Neighborhood have approved pursuant to Paragraph 8.5(a) and any contribution to be made to a Reserve pursuant to Section 10.2.  The budget shall also reflect the sources and estimated amounts of funds to cover such expenses, which may include any surplus to be applied from prior fiscal years, any income expected from sources other than Assessments levied against the Units in such Neighborhood, as well as the amount required to be generated through the levy of Neighborhood Assessments and Special Assessments against the Units in such Neighborhood.  The Association is hereby authorized to levy Neighborhood Assessments, in equal shares, against all Units in the Neighborhood that are subject to Assessments under Section 10.6, in order to fund the Neighborhood Expenses; provided, if so specified in the applicable Supplemental Declaration, or if so directed by petition signed by a majority of the Owners of the Units within the Neighborhood, any portion of the Assessment intended for exterior maintenance of structures, insurance on structures, or Reserves for replacement of particular structures shall be levied on each of the benefited Units in proportion to the benefit received.  The Board shall cause a copy of the Neighborhood budget and notice of the amount of the Neighborhood Assessment for the coming fiscal year to at least be electronically delivered to or made available on Los Arboles’ website so that each Owner of a Unit within the Neighborhood has notice thereof at least thirty (30) days prior to the beginning of the new fiscal year.  Such budget and Assessment shall become effective unless disapproved at a meeting of the Owners of a majority of the Units in the Neighborhood.  However, there shall be no obligation to call a meeting for the purpose of considering the budget except upon receipt of a petition of the Owners of at least ten percent (10%) of the Units in such Neighborhood.  This right to disapprove shall only apply to those line items in the Neighborhood budget, which are attributable to services requested by the Neighborhood, and shall not apply to any item which the Community Documents require to be levied as a Neighborhood Assessment.  If the proposed budget for any Neighborhood is disapproved, or if the Board fails for any reason to determine the budget for any year, then until such time as a new budget is determined, the budget in effect for the immediately preceding fiscal year shall continue to be effective for the current fiscal year.  The Board may revise the budget for any Neighborhood and the amount of any Neighborhood Assessment at any time and from time to time during the fiscal year, subject to the notice requirements and the right of the Owners of Units in the affected Neighborhood to disapprove the revised budget as set forth above.  All amounts collected by the Association as Neighborhood Assessments shall be held in trust for, and expended solely for the benefit of, the Neighborhood for which they were collected and shall be accounted for separately from the Association’s general funds.

                10.4         Covenant to Pay Assessments.  Declarant, for itself and for its successors in title to all land within the Community, hereby covenants and agrees that such land shall be subject to the levy of Assessments to fund the Common Expenses and other expenses of the Association incurred on behalf of the Owners, and hereby declares that the Association is authorized to levy such Assessments pursuant to this Declaration and the other Community Documents.  Every Owner of land within the Community, by its acceptance of a deed or other instrument conveying title to such land, shall be deemed to have covenanted and agreed to pay such Assessments.

                10.5         Authority to Levy General Assessments.  The Board of Directors is authorized to levy an annual General Assessment, in equal shares, against all Units subject to the levy of Assessments pursuant to this Section 10.5, in order to fund the Common Expenses.  In determining the amount of the General Assessment, the Board of Directors may consider any revenue anticipated to be raised from Assessments applicable to any additional Units reasonably anticipated to become subject to the levy of the General Assessment during the fiscal year.  Declarant may, but shall not be obligated to, reduce the General Assessment for any fiscal year by paying a subsidy (in addition to any amounts paid by Declarant under Section 10.13), which may be either a contribution, an advance against future Assessments due from Declarant, or a loan, in Declarant’s sole discretion.  Any such subsidy shall be disclosed as a line item in the revenue portion of the budget prepared in accordance with Section 10.1.  By paying such subsidy in any fiscal year, Declarant shall not be obligated to continue paying such subsidy in future fiscal years, unless otherwise provided in a written agreement between the Association and Declarant.  The Board shall send (electronically or otherwise) a copy of the final budget, together with notice of the amount of the General Assessment to be levied pursuant thereto, to each Owner at least thirty (30) days prior to the beginning of the new fiscal year.  The budget shall automatically become effective, unless disapproved at a meeting by Voting Members representing at least seventy-five percent (75%) of the total Class “A” votes, and the Class “B” Member, if any.  There shall be no obligation to call a meeting for the purpose of considering the budget, except upon receipt of a petition of the Members in accordance with the Memorandum of Association.  Any such petition must be presented to the Board within ten (10) days after the electronic transmission, dissemination or delivery of the budget and notice of any Assessment.  If a proposed budget is disapproved, or the Board fails for any reason to determine the budget for any fiscal year, then the budget most recently in effect shall continue in effect until a new budget is determined.  The Board may revise the budget and adjust the General Assessment from time to time during the fiscal year, subject to the notice requirements in Section 20.14 and the right of the Members to disapprove the revised budget set forth in this Section 10.5.

                10.6         Authority to Levy Special Assessments and Capital Improvement Assessments.  The Association is hereby authorized to levy and collect:

(a)           Special Assessments to fund unbudgeted Common Expenses or unbudgeted Neighborhood Expenses.  Any such Special Assessment may be levied against all Units, if such Special Assessment is to fund unbudgeted Common Expenses, or against the Units within a particular Neighborhood if such Special Assessment is to fund unbudgeted Neighborhood Expenses.  Except as otherwise specifically provided in this Declaration, a Special Assessment shall require the affirmative vote or written consent of Members representing more than fifty percent (50%) of the total votes appurtenant to the Units that will be subject to such Special Assessment, and the affirmative vote or written consent of the Class “B” Member, if any.  Special Assessments shall be payable in such manner and at such times as determined by the Board of Directors, and may be payable in installments extending beyond the fiscal year in which the Special Assessment is approved.

(b)           Capital Improvements Assessment for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of an improvement, or other such addition, upon the Properties, including, for example, fixtures and personal property related thereto; provided that such Assessment in excess of the lesser of Fifty Thousand U.S. Dollars (U.S.$50,000) or ten percent (10%) of the total amount of the current operating budget of the Association, shall require the vote or written assent of a Majority of the Class “A” votes of the Members or Voting Delegates representing a majority of the total Class “A” votes, whichever the case may be, except in the case of an emergency, fire, or other casualty where, in the reasonable judgment of the Board, such action is necessary to prevent further material damage or to protect against bodily injury without taking the time necessary to obtain the approval of Members.  No action authorized in this Section 6(b) of Article X shall be taken without prior written consent of Declarant as long as Declarant owns a Unit.

                10.7         Authority to Levy Specific Assessments.  The Board of Directors is authorized to levy a Specific Assessment against a particular Unit or Units as follows:

                (a)           To cover the costs, including overhead and administrative costs and charges, of providing any additional services to a Unit or Units that may be requested from and offered by the Association (which may include the additional services or facilities identified in Section 9.14).  Specific Assessments for additional services may be levied prior to the time when such requested services are actually provided; and

                (b)           To cover costs incurred in bringing the Unit into compliance with the Community Documents, or costs incurred as a consequence of the conduct of the Owner or occupants of the Unit, their agents, contractors, employees, licensees, invitees, or guests; provided, the Board shall give the Owner of the Unit prior written notice and an opportunity for a hearing, in accordance with the Memorandum of Association, before levying any such Specific Assessment under this Paragraph 10.6(b).  The Board may also levy a Specific Assessment against the Units within any Neighborhood to reimburse the Association for costs incurred in bringing the Neighborhood into compliance with the provisions of the Community Documents, provided the Board gives prior written notice to the Owners of Units in, or the Voting Member representing, the Neighborhood and an opportunity for such Owners or Voting Member to be heard before levying such Specific Unit Assessment.

                10.8         Time for Payment of Assessments.  The Owner of a Unit shall be obligated to pay Assessments with regard to such Unit beginning on the first day of the calendar month following: (a) the month in which the Unit is made subject to this Declaration; or (b) the month in which the Board of Directors first determines a budget and levies the first General Assessment pursuant to this Article; whichever is later.  The first General Assessment, and Neighborhood Assessment, if any, levied against each Unit shall be prorated according to the number of days remaining in the month and the number of months remaining in the fiscal year at the time Assessments commence with regard to the Unit.  The Owners shall pay Assessments in such manner and on such dates as the Board may establish.  The Board may require advance payment of Assessments at the closing of the transfer of title to a Unit, and may also impose special requirements for Owners with a history (for e.g., two or more) of delinquent payments.  If the Board so provides, the Owners may pay Assessments in annual, semi-annual, quarterly or monthly installments.  Unless the Board otherwise provides, the General Assessment and any Neighborhood Assessment shall be due and payable in advance on the first day of each fiscal year.  If any Owner is delinquent in paying any Assessments or other charges levied on such Owner’s Unit, the Board may accelerate the entire outstanding balance of all Assessments, thereby making the full amount of such Assessments immediately due and payable.

                10.9         Personal Obligation to Pay Assessments. Each Owner, by accepting a deed or other instrument transferring title to a Unit or any other portion of the Community, is deemed to covenant and agree to pay all Assessments authorized by this Declaration and duly adopted by the Association in accordance with the Community Documents.  All Assessments, together with interest computed from the due date at an annual rate of eighteen percent (18%) or the highest rate permitted under the laws of Belize, whichever is lower, late charges as may be established by a Resolution of general application duly adopted by the Board, and the costs of collection, including court costs and reasonable attorneys’ fees, shall be the personal and continuing obligation of each Owner until paid in full.  At the time of the transfer of title to a Unit, the transferee (i.e., the new Owner of the Unit) shall become jointly and severally liable with the transferor (i.e., the previous Owner of the Unit) for any unpaid Assessments and other charges due, but unpaid at the time of such transfer of title.  The failure of the Board to determine Assessments or the pro rata shares thereof applicable to each Unit, or to deliver to each Owner a notice of such Assessments, shall not be deemed a waiver, modification, or a release of any Owner from the personal obligation to pay the Assessments.  In such event, each Owner shall continue to pay the General Assessment on the same basis as during the last fiscal year for which an Assessment was duly levied, if any, until a new Assessment is levied, at which time the Association may retroactively levy a modified General Assessment for any shortfalls in revenue.   If any Owner submits a payment in the form of a check for any Assessments due and payable hereunder and such check is written on an account with insufficient funds or is otherwise returned with a stop payment order, in addition to charging such Owner or Owners a Fifty Dollar (U.S.$50.00) charge for such returned check, the Association may request and the Owner shall thereafter make such payment and all future payments by cashier’s check, certified check, credit card or money order or such other form or method of payment reasonably acceptable to the Association.

                10.10       Lien Securing Payment of Assessments.  The Association shall have a lien against each Unit, including those Units owned by Declarant, to secure the payment of delinquent Assessments, as well as the interest, the late charges, and the costs of collection identified in Section 10.8.  Such lien shall be superior to all other liens, except: (a) those liens securing the payment of all taxes, bonds, assessments, and other levies which by law are of superior priority; and (b) the lien or security title of any recorded first-priority Charge granted in good faith and for value.  When such lien secures a delinquent obligation, the Association may enforce the lien by suit, judgment, and judicial foreclosure.  The Declarant during the Declarant Control Period and the Association thereafter may bid for the Unit at the foreclosure sale, and borrow the money to acquire, acquire, hold, lease, Charge, and convey the Unit.  After the foreclosure of the Association’s lien against a Unit, and continuing so long as the Unit is owned by the Association: (a) no right to vote shall be exercised on the Unit’s behalf; (b) no Assessment shall be levied against the Unit; and (c) every other Unit shall be charged, in addition to its usual Assessment, a pro rata share of the Assessment that would have been levied against such Unit had it not been owned by the Association.  The Association may, in its discretion, sue an Owner for unpaid Assessments and other charges authorized hereunder without foreclosing or waiving the lien securing such Assessments and other charges.  The transfer of title to any Unit shall not affect the validity of the lien for delinquent Assessments, nor relieve such Unit from the lien for any subsequent Assessments.  However, the transfer of title to any Unit pursuant to the foreclosure of a first-priority Charge, or the Chargee’s acceptance of a deed in lieu thereof, shall extinguish the lien as to any installments of such Assessments that were due prior to the date of the foreclosure or deed in lieu thereof.  The new Owner acquiring title to the Unit subsequent to the foreclosure, or deed in lieu thereof, shall not be liable for the installments of Assessments against such Unit that were due before such Owner’s acquisition of title.  Such unpaid installments of Assessments shall be deemed to be Common Expenses to be collected from the Owners of all Units subject to the levy of Assessments under Section 10.5, including the new Owner of the subject Unit.

10.11       No Abatement or Set-Off Applicable to Assessments.  No Owner may reduce or eliminate such Owner’s personal liability for Assessments by refraining from the use of the Common Areas, by abandoning such Owner’s Unit, or by any other means.  The personal obligation to pay Assessments shall be deemed to be a separate and independent covenant on the part of each Owner.  No Owner may claim diminution or abatement of the Assessments or set-off for any alleged failure of the Association or Board of Directors to take some action or to perform some function, or for any inconvenience or discomfort arising from the maintenance, repair, replacement or improvement of Common Areas, or from any other action the Association or Board takes or does not take.

                10.12       Certificate Regarding Payment Status of Assessments (Estoppel Letters).  Upon receipt of the written request of any Owner, the Association shall provide such Owner with a written certificate, signed by an Officer, setting forth the estoppel information or payment status of all Assessments duly levied by the Association against such Owner’s Unit.  Such certificate shall be conclusive evidence of payment or non-payment, whichever the case may be.  The Association may require the advance payment of a reasonable processing fee for the issuance of such certificate, as established by a Resolution of general application duly adopted by the Board.

                10.13       Declarant’s Exemption from Assessment Obligations and Option to Fund Budget Deficits.  During the Declarant Control Period, Declarant will be exempt from the obligation to pay Assessments, which are imposed or are to be imposed against the Units that Declarant owns.  Regardless of Declarant’s election—that is, to fund any deficits or exempt itself from Assessment obligations, Declarant’s obligations hereunder may be satisfied in the form of cash or by in-kind contributions of services or materials, or by a combination of thereof. 

                10.14       Property Exempt from Assessments.  The following land within the Community shall be exempt from the payment of General Assessments, Neighborhood Assessments, and Special Assessments:

                (a)           All of the Common Areas and such portions of the land owned by Declarant as are included within the Area of Common Responsibility; and

                (b)           Any land dedicated to and accepted by any governmental authority or public utility; and

                (c)           Property owned by any Neighborhood Association for the common use and enjoyment of the Owners of Units within such Neighborhood, or owned by the members of a Neighborhood Association as tenants in common.

                10.15       Capitalization of Association.  The Board of Directors may, by a duly adopted Resolution of general application, establish and collect a Capital Contribution, levied upon acquisition of record title to a Unit by the first Owner thereof, other than Declarant or a Builder, such first Owner (in addition to and not in lieu of its Assessment obligation) shall make a contribution to the working capital of the Association in an amount equal to one-third (1/3) of the annual General Assessment then applicable to such Unit (the “Capital Contribution”).  The Capital Contribution shall be in addition to, not in lieu of, the pro rata share of the General Assessment applicable to such Unit, and shall not be considered an advance payment of any Assessment nor shall such payment be refundable.  The Association shall use the Capital Contributions to pay the operating expenses and other expenses incurred by the Association pursuant to this Declaration and the other Community Documents.

                10.16       Community Enhancement/Transfer Fee.

                (a)           Authority.  The Board of Directors may, by a duly adopted Resolution of general application, establish and collect a transfer fee from the transferring Owner upon each transfer of title to a Unit in the Community, which fee shall be payable to the Association at the closing of the transfer and shall be secured by the Association’s lien for Assessments pursuant to Section 10.7 (the “Transfer Fee”).  The Owner proposing to transfer title to such Owner’s Unit shall provide written notice to the Association’s Secretary of such proposed transfer at least thirty (30) days prior to the transfer.  Such notice shall include the name of the buyer, the date of the proposed transfer, and such other information reasonably required by the Board.

                (b)           Transfer Fee Limit.  The Board of Directors may, in its sole discretion, establish the amount or method of determining the Transfer Fee in a Resolution of general application duly adopted from time to time.  The Board is authorized, but not required, to determine the transfer fee based upon a sliding scale, which varies in accordance with the “gross selling price” of the property or any other factor as determined by the Board.  However, in no event shall the Transfer Fee exceed one percent (1.0%) of the gross purchase price of the Unit.  Until the Board passes a Resolution to the contrary, the Transfer Fee shall be One Percent of the gross purchase price of the Unit.  For the purpose of determining the amount of the Transfer Fee, the gross purchase price shall be the total cost to the purchaser of purchasing the Unit, excluding closing costs and title transfer taxes and recording fees imposed by the governmental agencies of Belize.

                (c)           Purpose.  All Transfer Fees collected by the Association shall be deposited into a segregated account used for such purposes as the Board deems beneficial to the general welfare of the Community, which the Community Documents do not otherwise require to be addressed by the Association’s general operating budget.  By way of example and not limitation, such Transfer Fees may be used to assist the Association in funding: (i) the preservation and maintenance of natural areas, reserves, wildlife preserves, or similar conservation areas, and sponsorship of educational programs and activities which contribute to the overall understanding, appreciation and preservation of the natural environment within the Community; (ii) programs and activities which serve to promote a sense of community within the Community, such as recreational leagues, cultural programs, educational programs, festivals and holiday celebrations and activities, a community computer network, and recycling programs; and (iii) social services, community outreach programs, and other charitable causes.

                (d)           Exempt Transfers.  Notwithstanding any provision of this Declaration to the contrary, no Transfer Fee shall be levied upon the transfer of title to a Unit: (i) by or to Declarant; (ii) by a Builder who held title solely for the purposes of development and resale; (iii) by a co-owner to any Person who was a co-owner immediately prior to such transfer; (iv) to the Owner’s estate, surviving spouse or heirs upon the death of the Owner; (v) to an Entity wholly- owned by the grantor; provided, upon any subsequent transfer of an ownership interest in such Entity, the Transfer Fee shall become due; or (vi) to an institutional lender or the Association pursuant to the foreclosure of a Charge or lien or a deed in lieu thereof.

Part Four
Community Development

                This Declaration reserves various rights to Declarant, as the developer of the Community, in order to facilitate the smooth and orderly development of the Community and to accommodate changes in the Master Plan, which inevitably occur as the Community grows and matures.

Article XI

Additional Rights Reserved by Declarant

                11.1         Withdrawal of Land.  Declarant reserves the right to amend this Declaration, so long as Declarant owns a Unit in the Community for the purpose of removing any portion of the Community, which has not yet been improved with structures from the coverage of this Declaration, provided such withdrawal does not reduce the total number of Units then subject to the Declaration by more than twenty percent (20%).  Such amendment shall not require the consent of anyone other than the Owner or Owners of the land to be withdrawn.  If Declarant withdraws land that has been previously designated as part of the Common Area, the Association must consent to such withdrawal.

                11.2         Marketing & Sales Activities.  Declarant, and the Builders authorized by Declarant, may construct and maintain upon portions of the Common Area such facilities and conduct such activities as, in Declarant’s sole opinion, may be reasonably required, convenient, or incidental to the construction, sale or leasing of Units, including, but not limited to, business offices, signs, model homes, and sales offices.  Declarant and the authorized Builders shall have easements for access to and use of such facilities.  The Declarant may charge such Builders a fee for using such facilities.

                11.3         Right to Develop.  Declarant, and its employees, agents, and designees, shall have a right of access and use and an easement over and upon all of the Common Area for the purpose of constructing and installing such improvements to the Common Area as Declarant deems appropriate, in its sole discretion.  Every Person or Entity that acquires any interest in the Community, by acceptance of a deed or other instrument transferring such interest, acknowledges that the Community is a mixed-use, master planned development, the development of which is likely to extend over many years, and agrees not to protest, challenge or otherwise object to (a) changes in uses or density of property outside the Neighborhood in which such Person holds an interest; or (b) changes in the Master Plan as it relates to property outside the Neighborhood in which such Person holds an interest.

                11.4         Right to Approve Additional Covenants.  So long as Declarant owns any portion of the land described in Exhibit A, no one may record any declaration of covenants, conditions and restrictions, or declaration of condominium or similar instrument affecting any portion of the Community without Declarant’s prior review and written consent.  The recording of any such instrument, without Declarant’s prior written consent, shall result in such instrument being void and of no force and effect, unless Declarant subsequently approves such instrument in a written consent executed and recorded by Declarant.

                11.5         Right to Approve Changes in Community Standards.  No amendment to or modification of the Guidelines or the Rules & Regulations shall be effective without Declarant’s prior review and written consent so long as Declarant owns any portion of the land described in Exhibit A .

                11.6         Right to Assign Declarant Rights.  Any or all of Declarant’s special rights and obligations set forth in this Declaration or the other Community Documents may be assigned in whole or in part to other Persons or Entities; provided, however, that such assignment shall not reduce an obligation nor enlarge a right beyond that which Declarant has under this Declaration or the other Community Documents.  No such assignment shall be effective unless it is set forth in a written instrument consented to and executed and recorded by Declarant.  Notwithstanding the foregoing sentence, Declarant may permit other Persons or Entities to exercise, on a one-time or other limited basis, any right reserved to Declarant in this Declaration when Declarant does not intend to assign such right permanently, and, in such case, Declarant shall not be required to record a written assignment unless it is necessary to evidence Declarant’s consent to such exercise.

                11.7         Exclusive Right to Use Name of Community.  No one may use the name “Los Arboles” or any derivative of such name in any logo, depiction or printed or promotional material without Declarant’s prior review and written consent.  However, the Owners may use the name “Los Arboles” in printed or promotional material where such term is used solely to specify that particular parcels of land are located within the Community, and the Association shall be entitled to use the words “Los Arboles” in its name.

                11.8         Easement to Inspect & Right to Correct.  Declarant reserves for itself and others it may designate the right to inspect, monitor, test, redesign, and correct any structure, improvement or condition which may exist on any portion of the land within the Community, including Units, and a perpetual non-exclusive easement of access throughout the Community to the extent reasonably necessary to exercise such right.  Except in a bona fide emergency and except as otherwise provided for herein, no one may enter a Unit except after reasonable notice to the Owner, and no one may enter a Home without the consent of the Owner.  The Person or Entity exercising this easement shall promptly repair, at such Person’s or Entity’s sole expense, any damage resulting from such exercise.

                11.9         Right to Notice of Design or Construction Claims.  No Owner, or any agent of an Owner, shall retain an expert for the purpose of inspecting the design or construction of any improvements within the Community in connection with or in anticipation of any potential or pending claim, demand or litigation involving such design or construction, unless Declarant, and any Builder involved in the design or construction thereof, have been first notified in writing and given an opportunity to meet with the Owner to discuss the Owner’s concerns and conduct their own inspection.

                11.10       Termination of Rights.  The rights contained in this Article shall not terminate until the earlier of (a) forty (40) years from the date this Declaration is recorded; or (b) such time as Declarant executes and records a written statement that all sales activity in the Community has ceased.

Part Five
Property Rights Within the Community

                The nature of living in a planned development, with its wide array of properties and development types and its ongoing development activity, requires the creation of special property rights and provisions to address the needs and responsibilities of Declarant, the Owners, the Association, and other Persons or Entities who own land within or adjacent to the Community.

Article XII
Easements

                12.1         Easements in Common Area.  Declarant reserves for itself, and grants and declares for each Owner of a Unit within the Community, a non-exclusive right and easement of use, access, and enjoyment in and to the Common Area, subject to:

                (a)           The covenants, conditions, restrictions and easements set forth in this Declaration and the other Community Documents, as well as any other recorded covenants, conditions, restrictions and easements applicable to the Common Area;

                (b)           Any covenants, conditions, restrictions or easements set forth in any deed conveying the Common Area to the Association;

                (c)           The Board of Directors’ right to: (i) adopt Rules & Regulations governing the use and enjoyment of the Common Area, including Rules limiting the number of guests who may use the Common Area; (ii) suspend an Owner’s right to use recreational facilities within the Common Area for (A) any period during which any Assessment or other charge against such Owner’s Unit remains delinquent; and (B) a period not to exceed sixty (60) days for a single violation or for a longer period in the case of any continuing violation, of the Community Documents after notice and a hearing pursuant to the Memorandum of Association; (iii) dedicate or transfer all or any part of the Common Area, subject to such approval requirements as may be set forth in this Declaration; (iv) impose reasonable membership requirements and charge reasonable admission or other user or service fees for the use of any recreational facility situated within the Common Area; (v) permit use of any recreational facilities situated on the Common Area by Persons other than Owners, their family members, tenants, and guests upon payment of use fees established by the Board, and designate other areas and facilities within the Area of Common Responsibility as open for the use and enjoyment of the general public; and (vi) Charge, pledge, or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred; and

                (d)           The rights of certain Owners to the exclusive use of those portions of the Common Area designated as Limited Common Areas pursuant to Article XIII.  Any Owner may extend such Owner’s right of use and enjoyment to the Owner’s family members, tenants, and social invitees, as applicable, subject to reasonable Rules & Regulations adopted by the Board of Directors pursuant to Article IV.  An Owner who leases such Owner’s Unit shall be deemed to have assigned all such rights to the tenants of such Unit for the term of the lease.

                12.2         Easements for Encroachments.  Declarant reserves for itself, and grants and declares for each Owner of a Unit within the Community, a reciprocal appurtenant easement for encroachments, and for maintenance and use of any encroaching improvement, between each Unit and any adjacent Common Area, and any Unit due to the unintentional placement or settling or shifting of the improvements constructed, installed, or modified thereon (in accordance with the terms of these restrictions) to a distance of not more than three (3) feet, as measured from any point on the common boundary.  However, in no event shall an easement for encroachment exist if such encroachment occurred due to willful and knowing conduct on the part of, or with the knowledge and consent of, the Person or Entity claiming the benefit of such easement.  Such easement for encroachment shall exist for the life of the encroaching improvement, but shall automatically terminate upon the removal or demolition of the encroaching improvement.

                12.3         Easements for Utilities, Etc.  Declarant reserves for itself, and grants and declares for any other Person or Entity specified, the following easements throughout the Community:

                (a)           Installation & Maintenance of Utilities.  Declarant reserves, for itself so long as Declarant owns any property described in Exhibit A and grants and declares for the Association and all utility providers, perpetual non-exclusive easements throughout the Community (but not through a structure) to the extent reasonably necessary: (i) to install utility service lines, equipment and infrastructure to serve the Community, cable and other systems for sending and receiving data and/or other electronic signals, security and similar systems, walkways, pathways and trails, drainage systems, street lights and signage on property which Declarant owns or within public rights-of-way or easements reserved for such purpose(s) on recorded plats; (ii) inspecting, maintaining, repairing, and replacing the utility service lines, equipment, infrastructure, and other improvements described in Subparagraph (i) above; and (iii) to read utility service meters installed within the Units or the Common Areas.

                (b)           Specific Easements.  Declarant also reserves for itself the non-exclusive right and power to grant and record such specific easements as may be necessary, in Declarant’s sole discretion, in connection with the orderly development of any land described in Exhibit A.  The Owner of any land to be burdened by any easement granted pursuant to this Paragraph 12.3(b) shall be given written notice in advance of the grant.  The location of the easement shall be subject to the written approval of the Owner of the burdened property, which approval shall not unreasonably be withheld, delayed or conditioned.

                (c)           Minimal Interference.  All work associated with the exercise of the easements described in Paragraphs (a) and (b) of this Section 12.3 shall be performed in such a manner as to minimize interference with the use and enjoyment of the Units or Common Areas burdened by the easement.  Upon completion of the work, the Person or Entity exercising the easement shall restore the affected property, to the extent reasonably possible, to its condition prior to the commencement of such work.  The exercise of these easements shall not extend to permitting entry into the Homes or other structures on any Unit, nor shall it unreasonably interfere with the use of any Unit and, except in an emergency, entry onto any Unit shall be made only after reasonable notice to the Owner or other occupant of such Unit.

                12.4         Easements for Maintenance, Emergency & Enforcement.  Declarant grants to the Association easements over the Community as necessary to enable the Association to fulfill its maintenance responsibilities under Section 9.4.  The Association shall also have the right, but not the obligation, to enter upon any Unit in a bona fide emergency, or for security and safety reasons, to perform maintenance and to inspect for the purpose of ensuring compliance with and enforce the Community Documents.  Any member of the Board of Directors and the Board’s duly authorized agents and assignees, and all emergency personnel in the performance of their duties may exercise such right.  Except in a bona fide emergency, entry shall only occur during reasonable hours and after notice to the Owner.

                12.5         Easements for River, Lagoon, Creek, Lake & Pond Maintenance & Flood Water.  Declarant reserves for itself and its successors, assigns, and designees, and grants and declares for the Association and its successors, assigns, and designees, the non-exclusive right and easement, but not the obligation, to enter upon, in or around bodies of water and wetlands located within the Area of Common Responsibility to: (a) install, operate, maintain, and replace pumps to supply irrigation water to the Area of Common Responsibility; (b) construct, maintain, and repair structures and equipment used for retaining water; and (c) maintain such areas in a manner consistent with the Community-Wide Standard.  Declarant, the Association, and their respective successors, assigns and designees shall have an access easement over and across any portions of the Community abutting or containing bodies of water or wetlands to the extent reasonably necessary to exercise their rights under this Section 12.5.  Declarant reserves for itself and its successors, assigns and designees, and grants and declares for the Association and its successors, assigns and designees, a perpetual, non-exclusive right and easement of access and encroachment over the Common Area and Units (but not the Homes thereon) adjacent to or within one hundred (100) feet of bodies of water and wetlands within the Community, in order to: (a) temporarily flood and back water upon and maintain water over such portions of the Community; (b) alter in any manner and generally maintain the bodies of water and wetlands within the Area of Common Responsibility; and (c) maintain and landscape the slopes and banks pertaining to such areas.  All Persons or Entities entitled to exercise these easements shall use reasonable care in the intentional exercise of such easements, and shall repair any damage resulting therefrom.  Nothing in this Section 12.5 shall be construed to make Declarant or any other Person or Entity liable for damage resulting from flooding due to hurricanes, heavy rainfall, other natural occurrences or any other act or occurrence beyond the control of the Declarant.

                12.6         Easement to Inspect & Right to Correct.  Declarant reserves for itself and others it may designate the right to inspect, monitor, test, redesign, and correct any structure, improvement or condition, which may exist on any portion of the land within the Community, including, for example, Units, and a perpetual, nonexclusive easement of access throughout the Community to the extent reasonably necessary to exercise such right.  Except in the case of a bona fide emergency, no one shall enter a Unit unless reasonable notice has been provided to the Owner of such Unit, and no one shall enter a Home or other structure within a Unit without the Owner’s consent.  The Person or Entity exercising this easement shall promptly repair, at such Person or Entity’s own expense, any damage resulting from such exercise.

                12.7         No Easement Terminable Without Consent of Holder.  Notwithstanding any other provision of this Declaration to the contrary, no express easement granted or declared herein may be terminated without the consent of the holder of such easement.

Article XIII
Limited Common Areas

                13.1         Nature of Limited Common Area.  Declarant hereby reserves the right to designate certain portions of the Common Area as Limited Common Areas, and to reserve such Limited Common Areas for the exclusive use or primary benefit of the Owners and occupants of one or more, but fewer than all, of the Units, or for the exclusive use or primary benefit of the Owners and occupants of the Units within a particular Neighborhood or Neighborhoods.  The Limited Common Areas may include, without limitation, entry features, gates, signage, retaining walls, recreational facilities, landscaped medians and cul-de-sacs, irrigation systems, lakes, creeks and other portions of the Common Area.  All costs associated with the maintenance, repair, replacement and insurance of a Limited Common Area shall be an expense allocated among the Units to which the Limited Common Areas are assigned.

                13.2         Designation of Limited Common Area.  Declarant may designate a Limited Common Area described as such in the deed conveying such area to the Association, in the Exhibits to this Declaration or any Supplemental Declaration, or on the Plat or Master Plan that creates and designates such Common Area; provided, however, any such designation shall not prevent Declarant from later assigning the use and enjoyment of the same Limited Common Area to additional Units and/or Neighborhoods.  Thereafter, a portion of the Common Area may be designated as a Limited Common Area, and the use and enjoyment of an existing Limited Common Area may be assigned or reassigned to other Units, only with approval of the Board of Directors and the affirmative vote of the Voting Members representing a majority of the total Class “A” votes, including a majority of the Class “A” votes within the Neighborhoods affected by the proposed assignment or reassignment.  

                13.3         Use of Limited Common Area by Others.  Upon approval by a majority of the Owners of Units to which a Limited Common Area is assigned, the Association may permit the Owners of other Units to use all or a portion of such Limited Common Area upon payment of reasonable user fees, which fees shall be used to offset the expenses attributable to such Limited Common Area.

Article XIV
Party Walls & Other Shared Structures

                14.1         General Rules of Lawn to Apply.  Each wall, fence, driveway, or similar structure that is constructed or installed as a part of the original improvements on two or more adjoining Units, and that serves and/or separates such adjoining Units, shall constitute a party structure.  No party structure shall be built upon any Unit unless approved by the ARB.  To the extent not inconsistent with the provisions of this Section 14.1, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto.  Any dispute arising concerning a party structure shall be handled in accordance with the provisions of Article XV.

                14.2         Maintenance; Damage & Destruction.  The cost of reasonable maintenance and repair of a party structure shall be shared equally by the Owners of the Units to which the party structure is appurtenant.  If a party structure is destroyed or damaged by casualty, then to the extent that such damage is not covered by insurance and repaired with the proceeds of such insurance, any Owner who has used the party structure may restore it.  If other Owners thereafter use the party structure, they shall contribute to the restoration cost in equal shares.  However, such contribution will not prejudice the right to call for a larger contribution from the other users under any rule of law regarding liability for negligent or willful acts or omissions.  The right of any Owner to contribution from any other Owner under this Section 14.2 shall be appurtenant to the land and shall pass to such Owner’s successors in title.

Part Six
Relationships Within & Outside the Community

                The growth and success of the Community as a mixed-use, master planned development in which people enjoy living, working, and playing requires good-faith efforts to resolve disputes amicably, attention to and understanding of relationships within the Community and with its neighbors, and protection of the rights of others who have an interest in the Community.

Article XV
Dispute Resolution & Limitation on Litigation

                15.1         Agreement to Encourage Resolution of Disputes Without Litigation.  Declarant, the Association and its Directors, officers and committee members, all Persons or Entities subject to this Declaration, and any Person or Entity not otherwise subject to this Declaration who agrees to submit to this Article (collectively, the “Bound Parties”), agree that it is in the best interest of all concerned to encourage the amicable resolution of disputes involving the Community without the emotional and financial costs of litigation.  Accordingly, each Bound Party agrees not to file suit in any court with respect to a Claim described in Section 15.2, unless and until it has first submitted such Claim to the alternative dispute resolution procedures set forth in Section 15.3 in a good-faith effort to resolve such Claim.  

                15.2         Claims to be Resolved.  As used in this Article XVI, the term “Claim” shall mean and include any claim, grievance, or dispute arising out of or relating to (a) the interpretation, application, or enforcement of the Community Documents; (b) the rights, obligations, and duties of any Bound Party under the Community Documents; or (c) the design, construction, installation or modification of improvements within the Community, other than matters of aesthetic judgment under Article VI which shall not be subject to review.  Notwithstanding any other provision of this Declaration or the other Community Documents to the contrary, the following matters shall not be considered “Claims” unless all parties to the matter otherwise agree to submit the matter to the procedures set forth in Section 16.3: (u) any suit by the Association to collect Assessments or other amounts due from any Owner, or to foreclose the lien securing Assessments; (v) any suit by the Association to obtain a temporary restraining order (or emergency equitable relief) and such ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association’s ability to enforce the provisions of this Declaration regarding the creation and maintenance of the Community-Wide Standards; (w) any suit between Owners, which does not include Declarant or the Association as a party, if such suit asserts a Claim which would constitute a cause of action independent of the Community Documents; (x) any suit in which any indispensable party is not a Bound Party; and (y) any suit as to which any applicable statute of limitations would expire within one hundred eighty (180) days of giving the Notice required by Paragraph 15.3(a), unless the party or parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Article.

                15.3         Dispute Resolution Procedures.  The following dispute resolution procedures shall apply to any Claim described in Section 15.2:

                (a)           Notice.  The Bound Party asserting a Claim (the “Claimant”) against another Bound Party (the “Respondent”) shall give written notice to each Respondent and to the Board of Directors stating plainly and concisely: (i) the nature of the Claim, including the Persons or Entities involved and the Respondent’s role in the Claim; (ii) the legal basis of the Claim (i.e., the specific authority that supports the Claim); (iii) the Claimant’s proposed resolution or remedy; and (iv) the Claimant’s desire to meet with the Respondent to discuss in good faith ways to resolve the Claim.

                (b)           Negotiation.  The Claimant and the Respondent shall make every reasonable effort to meet in person, by phone, electronically, videoconference or otherwise, and confer for the purpose of resolving the Claim by good-faith negotiation.  If requested in writing, accompanied by a copy of the notice, the Board of Directors may appoint a representative to assist the parties in negotiating a resolution of the Claim.

                (c)           Mediation.  If the parties have not resolved the Claim through negotiation within thirty (30) days of the date of the notice described in Paragraph 15.3(a) (or within such other period as the parties may agree), the Claimant shall have thirty (30) additional days to submit the Claim to mediation with an entity designated by the Association (if the Association is not a party to the Claim) or to an independent agency providing dispute resolution services in Belize.  If the Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation when scheduled, the Claimant shall be deemed to have waived the Claim, and the Respondent shall be relieved of any and all liability to the Claimant (but not third parties) on account of such Claim.  If the parties do not settle the Claim within thirty (30) days after submission of the matter to mediation, or within such time as determined reasonable by the mediator, the mediator shall issue a notice of termination of the mediation proceedings indicating that the parties are at an impasse and the date that mediation was terminated.  The Claimant shall thereafter be entitled to file suit or to initiate administrative proceedings based upon the Claim, as appropriate.  Each party shall bear its own costs of the mediation, including attorneys’ fees, and each party shall share equally all fees charged by the mediator.

                (d)           Settlement.  Any settlement of the Claim through negotiation or mediation shall be documented in writing and signed by the parties.  If any party thereafter fails to abide by the terms of such agreement, then any other party may file suit or initiate administrative proceedings to enforce such agreement without the need to again comply with the procedures set forth in this Section 15.3.  In such event, the party taking action to enforce the agreement or award shall, upon prevailing, be entitled to recover from the non-complying party (or if more than one non-complying party, from all such parties in equal shares) all costs incurred in enforcing such agreement or award, including, without limitation, attorneys’ fees and court costs.

15.4         Initiation of Litigation by Association.  In addition to compliance with the foregoing alternative dispute resolution procedures, if applicable, the Association shall not initiate any judicial or administrative proceeding unless first approved by the affirmative vote of Voting Members entitled to cast seventy-five percent (75%) of the total Class “A” votes in the Association; provided, however, that no such approval shall be required for those actions or proceedings:

                (a)           initiated during the Declarant Control Period;

                (b)           initiated to enforce the provisions of this Declaration, including the collection of Assessments and the foreclosure of liens;

                (c)           initiated against any contractor, vendor, or supplier of goods or services arising out of a contract for services or supplies; or

                (d)           to defend claims filed against the Association or to assert counter-claims in proceedings initiated against the Association.

This Section 15.4 may not be amended unless such amendment is approved by the same percentage of votes necessary to initiate proceedings.

                15.5         Venue and Jurisdiction.  Notwithstanding anything contained herein to the contrary, each Bound Party agrees that any Claim (described in Section 15.2 above) may be brought against the Bound Parties only in the courts in Belize, and each of the Bound Parties consents (or shall be deemed to have consented by acceptance of a deed for his or her Unit) to the jurisdiction of such courts (and of appropriate appellate courts) in any such Claim, action or proceedings and waives any objection to venue laid therein. 

Article XVI
Provisions for Benefit of Chargees

                The following provisions are for the benefit of the holders, insurers and guarantors of first-priority Charges that encumber Units within the Community.  Notwithstanding any other provisions of this Declaration or the Memorandum of Association, the provisions of this Article shall govern the rights of such holders, insurers and guarantors of first-priority Charges.

                16.1         Notices of Action.  Any holder, insurer, or guarantor of a first-priority Charge, that provides to the Association a written request stating the name and address of such holder, insurer, or guarantor, and the street address or lot and unit number of the Unit to which its Charge encumbers, shall qualify as an “Eligible Holder” under this Section 16.1.  The Association shall provide timely notice in accordance with Section 20.14 to each Eligible Holder of any or all of the following occurrences:

                (a)           Any taking or condemnation, or conveyance in lieu thereof, that affects a material portion of the Common Area, or that affects any Unit encumbered by a first-priority Charge held, insured, or guaranteed by such Eligible Holder;

                (b)           Any casualty loss that affects a material portion of the Common Area, or that affects any Unit encumbered by a first-priority Charge held, insured, or guaranteed by such Eligible Holder;

                (c)           Any delinquency of sixty (60) or more days in the payment of Assessments or other charges against a Unit encumbered by the first-priority Charge held, insured or guaranteed by such Eligible Holder;

                (d)           Any non-monetary violation of the Community Documents regarding a Unit encumbered by the first-priority Charge held, insured or guaranteed by such Eligible Holder, or regarding the Owner or occupant of such Unit, that is not cured within sixty (60) days after delivery of notice thereof to the Owner of such Unit; or

                (e)           Any lapse, cancellation, or material modification of any insurance policy maintained by the Association. 

                16.2         Other Provisions for First-Priority Lien Holders.  To the extent not inconsistent with applicable laws of Belize:

                (a)           Any restoration, repair or replacement of the Common Area, or the improvements constructed or installed thereon, after a partial taking, condemnation, conveyance in lieu thereof, or damage due to an insurable hazard shall be performed substantially in accordance with this Declaration and the original plans and specifications, unless the approval is obtained of the Eligible Holders of first-priority Charges encumbering Units to which at least fifty percent (50%) of the votes of Units encumbered by the first-priority Charges held by such Eligible Holders are allocated.

                (b)           Any election to terminate the Association after the substantial destruction of the improvements constructed or installed within the Common Area, or a substantial taking, condemnation, or conveyance in lieu thereof, of the Common Area shall require the approval of the Eligible Holders of first-priority Charges on Units to which at least fifty percent (50%) of the votes of Units encumbered by the first-priority Charges held by such Eligible Holders are allocated.

                16.3         Amendments to Documents.  The following provisions do not apply to amendments to the Community Documents, or the termination of the Association as a result of destruction, damage, or condemnation pursuant to Paragraphs 16.2(a) and 16.2(b).

                (a)           The consent of the Voting Members representing at least sixty-seven percent (67%) of the Class “A” votes, and of Declarant so long as it owns any land subject to this Declaration, and the approval of the Eligible Holders of first-priority Charges on Units to which at least sixty-seven percent (67%) of the votes of Units encumbered by a Charge, shall be required to terminate the Association.

                (b)           The consent of the Voting Members representing at least sixty-seven percent (67%) of the Class “A” votes, and of Declarant so long as it owns any land subject to this Declaration, and the approval of Eligible Holders of first-priority Charges encumbering Units to which more than fifty percent (50%) of the votes of Units subject to a Charge appertain, shall be required to materially amend any provisions of the Declaration, the Articles of Association, the Memorandum of Association or to add any material provisions thereto which establish, provide for, govern, or regulate any of the following: (i) voting rights and procedures; (ii) Assessments, liens for Assessments, or the subordination of such liens; (iii) Reserves for the maintenance, repair, and replacement of the Common Area and improvements constructed or installed thereon; (iv) insurance; (v) rights to use the Common Area; (vi) responsibility for maintenance and repair of the Area of Common Responsibility; (vii) expansion or contraction of the Community or the addition, annexation, or withdrawal of land to or from the jurisdiction of the Association; (viii) boundaries of any Unit; (ix) leasing of Units; (x) imposition of any right of first refusal or similar restriction of the right of any Owner to sell, convey, or otherwise transfer such Owner’s Unit; (xi) establishment of self-management by the Association where professional management has been required by an Eligible Holder; or (xii) any provisions included in the Community Documents which are for the express benefit of holders, guarantors, or insurers of first-priority Charges encumbering the Units.

16.4         No Priority to Condemnation or Insurance Proceeds.  No provision of this Declaration or the other Community Documents provides, or shall be construed as providing, any Owner, or other Person or Entity, with priority over any rights of the first-priority Chargee of any Unit in the case of a distribution to such Owner of insurance proceeds from a casualty regarding the improvements constructed or installed within the Common Area, or a distribution of the proceeds from a taking, condemnation, or deed in lieu thereof, of all or any portion of the Common Area.

                16.5         Notice to Association of Charge.  Upon receipt of a request from the Association, each Owner shall provide the name and address of the holder of any Charge encumbering such Owner’s Unit.

                16.6         Construction of Article XVI.  Nothing contained in this Article shall be construed to reduce the percentage vote that must otherwise be obtained under this Declaration, the Articles of Association, the Memorandum of Association, or applicable law for any of the acts set forth in this Article XVI.

Part Seven
Changes in the Community

                Developments such as the Community are dynamic and constantly evolving as circumstances, technology, needs and desires, and laws change, as the residents age and change over time, and as the surrounding communities changes.  The Community and the Community Documents must be able to adapt to these changes while protecting the characteristics and qualities that make the Community unique.

Article XVII
Changes in Ownership of Units

                Any Owner who desires to sell or otherwise transfer title to such Owner’s Unit shall give the Association at least thirty (30) days prior written notice of the Owner’s intended date of transfer.  Such notice shall include the name and address of the proposed purchaser or transferee, the proposed date of such transfer of title, and such other information as the Board of Directors may reasonably require.  The transferring Owner shall continue to be jointly and severally responsible with the transferee Owner for all obligations of the Unit Owner, including Assessment obligations, until the date upon which the Board receives such notice, notwithstanding any previous transfer of title.

Article XVIII
Changes in Common Area

                18.1         Condemnation.  If any part of the Common Area is taken (or conveyed under threat of, but in lieu of condemnation), by the Board acting on the written approval of the Voting Members representing at least sixty-seven percent (67%) of the total Class “A” votes and of Declarant, so long as Declarant has not assigned Declarant’s rights thereto or has not voluntarily relinquished such right in a Supplemental Declaration, by any authority having the power of condemnation or eminent domain, each Owner shall be entitled to written notice of such taking or conveyance prior to the disbursement of any condemnation award or proceeds from such conveyance.  Such award or proceeds shall be payable to the Association to be disbursed as follows:

                If the taking, or conveyance in lieu thereof, involves a portion of the Common Area on which improvements have been constructed or installed, the Association shall restore or replace such improvements on the remaining land within the Common Area to the extent possible, unless within sixty (60) days after such taking or conveyance in lieu thereof, Declarant, so long as Declarant owns any property subject to the Declaration, and the Voting Members representing at least seventy-five percent (75%) of the total Class “A” votes otherwise agree.  Any such construction shall be in accordance with plans approved by the Board of Directors.  The provisions of Section 9.7 regarding funds for restoring the Common Area improvements shall apply.

                If the taking or conveyance does not involve any improvements on the Common Area, or if a decision is made not to repair or restore the improvements, or if net funds remain after any such restoration or replacement is complete, then such award or net funds shall be disbursed to Chargees in the order and to the extent reported to the Association.

                18.2         Partition.  Except as expressly permitted by this Declaration, the Common Area shall remain undivided, and no cause of action for partition of any portion of the Common Area shall lie without the written consent of all of the Owners and the Chargees.  This Section 18.2 shall not prohibit the Board of Directors from acquiring and disposing of tangible personal property, nor from acquiring and disposing of real property that may or may not be subject to this Declaration.

                18.3         Transfer or Dedication of Common Area.  The Association may dedicate portions of the Common Area to a governmental agency of Belize or to any other governmental or quasi-governmental entity subject to such approval.

Article XIX
Amendment of Declaration

                19.1         Amendments by Members.  Except as otherwise specifically provided in Section 19.2 and elsewhere in this Declaration, this Declaration may be amended only by the affirmative vote or written consent, or any combination thereof, of the Voting Members representing sixty-seven percent (67%) of all Class “A” votes, including sixty-seven (67%) of the Class “A” votes held by the Members other than Declarant, together with Declarant’s written consent so long Declarant owns any portion of the land described in Exhibit A.  In addition, the approval requirements set forth in Article XVI shall be met, if applicable.  Notwithstanding the above, the percentage of votes necessary to amend a specific provision shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that provision.

                19.2         Amendments by Declarant.  In addition to specific rights to amend this Declaration reserved or granted elsewhere in this Declaration, Declarant may unilaterally amend this Declaration for any purpose until termination of the Declarant Control Period.  For instance, Declarant may unilaterally amend this Declaration or the Community Documents if such amendment is necessary: (a) to bring any provision into compliance with any applicable governmental statute, rule, regulation, or judicial determination; (b) to enable any reputable title insurance company to issue title insurance policies regarding the Units; (c) to enable any institutional or governmental lender, purchaser, insurer, or guarantor of Charge loans to make, purchase, insure, or guarantee loans secured by Charges encumbering the Units; or (d) to satisfy the requirements of any governmental agency.  However, any such amendment may not adversely affect the title to any Unit, unless the Owner of each affected Unit consents in writing. 

                19.3         Validity & Effective Date.  No amendment of or to this Declaration may terminate, revoke, or modify any (express or implied) right or privilege of Declarant or the Class “B” Member or the Declarant Control Period without the written consent of Declarant or the Class “B” Member, respectively (or the assignee of such rights or privileges, if applicable).  If an Owner consents to any amendment to this Declaration or the Memorandum of Association, it will be conclusively presumed that such Owner has the authority to consent, and no contrary provision in any Charge or contract between the Owner and a third party will affect the validity of such amendment.  An amendment shall become effective upon its recording, unless a later effective date is specified in the amendment.  Any procedural challenge to an amendment must be made within one hundred eighty (180) days of its recording, or such amendment shall be presumed to have been validly adopted.  In no event shall a change of conditions or circumstances operate to amend any provisions of this Declaration, any Community Document or any amendment thereto.

Article XX
Enforcement & Interpretation

                20.1         Association of Declaration by Reference.  Every deed conveying fee-simple title to, or other instrument granting any other interest in any parcel of land within the Community shall be deemed to incorporate each and every provision of this Declaration, as amended from time to time.  Every Owner or occupant of a Unit, by acceptance of a deed conveying title to or other instrument granting any interest in a Unit, shall be deemed to have agreed to and ratified every provision of this Declaration, as amended and supplemented from time to time.  Such deed or other instrument shall also be deemed to incorporate therein all restrictions, easements and other provisions of the Plat that created the Unit.

                20.2         Governing Law & Venue.  This Declaration and the other Community Documents shall be governed by and interpreted in accordance with the laws of Belize.  The proper venue for the resolution of any litigation, arbitration or mediation based upon or arising from this Declaration or the subject matter hereof shall be the courts or other quasi-judicial bodies in and for Belize.

                20.3         Enforcement.  Every Owner and occupant of a Unit shall comply with the provisions of this Declaration and the other Community Documents, as they each may be amended and supplemented from time to time.  If any Owner or occupant fails to comply with the provisions of this Declaration and the other Community Documents, such failure shall be a sufficient basis for the initiation of an action by Declarant, the Association or an aggrieved Owner for recovery of monies due, damages, or injunctive relief, or for any other remedy available at law, equity, or expressly provided in this Declaration or the other Community Documents.

                20.4         Waiver of Trial by Jury.  All litigation between or among any of Declarant, the Association, and one or more Owners shall be determined by a judge of competent jurisdiction, and not a jury, and every Owner or occupant of a Unit, by acceptance of a deed conveying title or other instrument granting any interest in a Unit, shall be deemed to have waived any right to a trial by jury regarding such matters.

                20.5         Attorneys’ Fees.  The prevailing party in any dispute between or among any of Declarant, the Association, and one or more Owners shall be entitled to recover the prevailing party’s court costs and reasonable attorneys’ fees and disbursements (whether suit is initiated or not and including all levels of appeal) from the non-prevailing party.

                20.6         Remedies Cumulative.  Unless otherwise limited by the provisions of this Declaration or the other Community Documents, the remedies afforded by this Declaration to Declarant, the Association or any Owner who seeks to enforce one or more of the provisions hereof shall be cumulative, and the selection of one remedy or means of enforcement shall not prevent Declarant, the Association or such Owner from seeking another remedy or means of enforcement afforded by this Declaration or by the laws of Belize.

                20.7         Alternative Dispute Resolution.  Notwithstanding any other provision of this Declaration or the other Community Documents, Declarant’s intent in recording this Declaration is to encourage the amicable resolution of disputes between or among Declarant, the Association and the Owners, and, if possible, to avoid the financial and emotional costs associated with litigation.  Accordingly, Declarant hereby covenants and agrees, for itself, the Association, and for every successor in title to any land within the Community, to attempt to resolve any dispute arising from this Declaration or the other Community Documents by mediation or arbitration before initiating litigation.  To further encourage the amicable resolution of such disputes, the Board of Directors may, by a duly adopted Resolution of general application, impose uniform procedures for mediation and/or arbitration for any dispute advanced by an Owner.  Participation in mediation or arbitration shall be voluntary and confidential; if any party to a dispute concludes that such methods of alternative dispute resolution have become unproductive, then such party may proceed with litigation after a good-faith effort to resolve the dispute through mediation or arbitration.

                20.8         Priority of Community Documents.  In the event of a conflict between a provision of this Declaration and a provision of one of the other Community Documents, the provisions of this Declaration shall control.  Likewise, the provisions of the Articles of Association shall control over those conflicting provisions of the Memorandum of Association, the Architectural Guidelines, the Rules & Regulations and the Resolutions; the provisions of the Memorandum of Association shall control over those conflicting provisions of the Architectural Guidelines, the Rules and the Resolutions; the provisions of the Architectural Guidelines shall control over those conflicting provisions of the Rules and the Resolutions; and the provisions of the Rules shall control over those conflicting provisions of the Resolutions.

                20.9         Severability.  If a court of competent jurisdiction determines that any provision of this Declaration or the other Community Documents is invalid, such determination shall not affect the validity of other provisions, which shall remain in full force and effect.  Likewise, if a court of competent jurisdiction determines that any provision of this Declaration or the other Community Documents is invalid as applied in a particular instance, such determination shall not affect the validity of the same provision as applied in other circumstances.

                20.10       Duration.  This Declaration, as amended from time to time, shall remain in effect in perpetuity.  

                20.11       Time of the Essence.  Time shall be of the essence in the performance of every obligation imposed by a provision of this Declaration and the Community Documents upon an Owner.  Notwithstanding the preceding sentence, if the deadline set for such performance falls on a Saturday, Sunday or legal holiday recognized by Belize, such deadline shall be deemed to have been extended until 5:00 p.m. on the next day that is not a Saturday, Sunday or legal holiday.

                20.12       Headings & Captions.  Headings of articles and captions of sections and paragraphs in this Declaration and the other Community Documents are provided as a convenient means of reference for the reader, and shall not be construed as interpreting, limiting or otherwise affecting the meaning of the text of this Declaration or the other Community Documents.

                20.13       Diagrams & Illustrations.  Throughout the Community Documents, certain diagrams have been provided to illustrate the concepts discussed and to aid the reader’s understanding.  Such diagrams are for illustrative purposes only.  In the event of a conflict between any diagram and the text of this Declaration or any of the other Community Documents, the text shall control.

                20.14       Notices.  All notices required or permitted under this Declaration shall be in writing.  A notice to any Owner, including Declarant, shall be addressed to such Owner at the mailing address last provided to the Association by the Owner.  It shall be the affirmative obligation of every Owner to provide a current mailing address to the Association on or before the thirtieth (30th) day after the effective date of any change in such Owner’s mailing address.  Notices sent to an Owner at the last mailing address provided to the Association, but returned as undeliverable, shall be deemed to have been effective.  A notice to the Association shall be addressed to the Association at the mailing address provided in the Association’s annual corporate report filed with the applicable governmental agency in Belize, or at such other address as the Association from time to time provides the Owners in accordance with this Section 20.14 and a copy in all instances shall be sent to Jason Weaver, Esq., 350 E. Las Olas Blvd. Suite 1440, Ft. Lauderdale, FL 33312.  A notice may be sent by: (a) certified or registered U.S. Mail, return receipt requested; (b) hand delivery; or (c) nationally recognized overnight courier service.  A notice sent by certified or registered U.S. Mail shall be deemed to be delivered on the third (3^rd) business day following its deposit with the U.S. Postal Service; a notice sent by any other means shall be deemed to be delivered upon actual delivery to the recipient’s last mailing address provided to the Association, or upon attempted delivery if the intended recipient refuses delivery or the last provided address is incorrect.  Notwithstanding the requirements of this Section 20.14, the applicable provisions of the Memorandum of Association shall govern the method of delivery of those notices sent by the Association to Members regarding meetings of the Members or meetings of the Board of Directors.

                In Witness Whereof, Declarant has caused the duly authorized representative of it corporate Manager to execute this Declaration on the date first written above.

Exhibit D
Rules & Regulations for
Los Arboles Community Association Limited

                The following restrictions shall apply to all of the Units within Los Arboles within the confines of the legal description depicted on Exhibit A until such time as they are amended, modified, repealed, or limited pursuant to Article III of the Declaration.  Capitalized terms, as used herein, shall have the meanings ascribed to them in the Declaration, unless otherwise defined.

                1.             General.  Land within the Community may be used only for residential, recreational, commercial and related purposes as and where designated by the Master Plan (which may include, without limitation, an information center and/or a sales office for any real estate broker retained by Declarant to assist in the sale of property described in Exhibit A of the Declaration, offices for any property manager retained by the Association, or business offices for Declarant or the Association) consistent with the Declaration and any Supplemental Declaration except for those parcels designated for commercial use.

                2.             Restricted Activities.  The following activities are prohibited within the Community unless expressly authorized by, and then subject to such conditions as may be imposed by, the Board of Directors:

                (a)           Parking any vehicles on public or private streets or thoroughfares, or parking of commercial vehicles or equipment, mobile homes, recreational vehicles, golf carts, boats and other watercraft, trailers, stored vehicles, or inoperable vehicles in places other than enclosed garages or carport; provided, construction, service and delivery vehicles shall be exempt from this provision during daylight hours for such period of time as is reasonably necessary to provide service or to make a delivery to a Unit or the Common Area;

                (b)           Owner(s) or other occupants of a Unit may keep a reasonable number of dogs, cats, horses, or other usual and common household pets within such Unit.  No one shall permit any pet, animal, or livestock to roam free, make objectionable noise, or endanger the health or safety of, or constitute a nuisance or inconvenience to, the Owners or other occupants of other Units.  Any pet that violates this Rule or Section 3.6 of the Declaration, in the sole discretion of the Board of Directors, shall be removed from the Unit and the Community upon the Board’s request.  If the owner of such pet fails to honor such request, the Board may cause the pet to be removed from the Unit and the Community, and all costs and expenses of such removal shall be the responsibility of the Unit Owner.  Pet owners shall keep their dogs on a leash, or otherwise confined in a manner acceptable to the Board, whenever their dogs are present outside their Homes.  All pets shall be registered, licensed and inoculated as required by applicable laws, codes and ordinances.  The Association may adopt Rules & Regulations that further regulate the keeping of pets within the Community, including, but not limited to, the restriction of the number of animals that may be kept within a Unit, the prohibition of certain species or breeds, and the regulation or prohibition of pet activities within the Common Area.

                Every pet owner shall be strictly responsible for the behavior of such owner’s pet, including, for example, any damage to property or injury to Persons caused by such pet, and shall indemnify, defend and hold Declarant, the Association and every other Owner or occupant of a Unit completely free and harmless from and against any and all damage or injury caused by such pet. 

                (c)           Any activity, which emits foul or obnoxious odors outside the Unit or creates noise or other conditions, which tend to disturb the peace or threaten the safety of the occupants of other Units;

                (d)           Any activity which violates the laws or regulations of Belize; however, the Board shall have no obligation to take enforcement action in the event of a violation;

                (e)           Pursuit of hobbies or other activities, which tend to cause an unclean, unhealthy, or untidy condition to exist outside of enclosed structures on the Unit;

                (f)            Any noxious or offensive activity which in the reasonable determination of the Board tends to cause embarrassment, discomfort, annoyance, or nuisance to persons using the Common Area or to the occupants of other Units;

(g)           Outside burning of trash, leaves, debris, or other materials, except during the normal course of constructing a dwelling on a Unit;

                (h)           Use or discharge of any radio, loudspeaker, horn, whistle, bell, or other sound device so as to be audible to occupants of other Units, except alarm devices used exclusively for security purposes;

                (i)            Use and discharge of firecrackers and other fireworks;

                (j)            Dumping grass clippings, leaves or other debris, petroleum products, fertilizers, or other potentially hazardous or toxic substances in any drainage ditch, stream, pond, or lake, or elsewhere within the Community, except that fertilizers may be applied to landscaping on Units provided care is taken to minimize runoff, and Declarant and Builders may dump and bury rocks and trees removed from a building site on such building site;

                (k)           Accumulation of rubbish, trash, or garbage, except between regular garbage pick-ups, and then only in approved containers;

                (l)            Obstruction or re-channeling drainage flows after location and installation of drainage swales, storm sewers, or storm drains, except that Declarant and the Association shall have such right; provided, the exercise of such right shall not materially diminish the value of or unreasonably interfere with the use of any Unit without the Owner’s consent;

                (m)          Subdivision of a Unit into two or more Units, or changing the boundary lines of any Unit after a subdivision plat including such Unit has been approved and Recorded, except that Declarant shall be permitted to subdivide or replat Units which it owns;

                (n)           Fishing from the shore of the river shall be permitted with appropriate licenses, if necessary, and Declarant, its successors and assigns, shall be permitted and shall have the exclusive right and easement to draw water from the river within or on the outskirts of the Community for purposes of irrigation and such other purposes as Declarant shall deem desirable.  The Association and the Declarant shall not be responsible for any loss, damage, or injury to any person or property arising out of the authorized or unauthorized use of rivers, lagoons, lakes, ponds, creeks, streams or other bodies of water within or adjacent to the Community;

                (o)           Use of any Unit for the operation of a time-sharing, fraction-sharing, or similar program whereby the right to exclusive use of the Unit rotates among participants in the program on a fixed or floating time schedule over a period of years, except that Declarant and its assigns may operate such a program with respect to Units which it owns;

                (p)           Discharge of firearms; provided, the Board shall have no obligation to take action to prevent or stop such discharge;

                (q)           On-site storage of gasoline, heating, or other fuels, except that a reasonable amount of fuel may be stored on each Unit for emergency purposes and operation of lawn mowers and similar tools or equipment, and the Association shall be permitted to store fuel for operation of maintenance vehicles, generators, and similar equipment. This provision shall not apply to any underground fuel tank authorized pursuant to Article IV;

                (r)            Any business, trade, garage sale, moving sale, rummage sale, or similar activity on parcel designated on the Master Plan as a residential parcel, except that an Owner or occupant residing in a Unit may conduct business activities within the Unit so long as: (i) the existence or operation of the business activity is not apparent or detectable by sight, sound, or smell from outside the Unit; (ii) the business activity conforms to all land use and zoning requirements in and for Belize or any other governmental body having jurisdiction over the Community; (iii) the business activity does not involve door-to-door solicitation of residents of the Community; (iv) the business activity does not, in the Board’s reasonable judgment, generate a level of vehicular or pedestrian traffic or a number of vehicles being parked in the Community, which is noticeably greater than that which is typical of Units in which no business activity is being conducted; and (v) the business activity is consistent with the residential character of the Community and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Community, as may be determined in the Board’s sole discretion.  The terms “business” and “trade,” as used in this provision, shall be construed to have their ordinary, generally accepted meanings and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider’s family and for which the provider receives a fee, compensation, or other form of consideration, regardless of whether: (i) such activity is engaged in full or part-time; (ii) such activity is intended to or does generate a profit; or (iii) a license is required.  Leasing of a Unit shall not be considered a business or trade within the meaning of this subsection. This subsection shall not apply to any activity conducted by Declarant or a Builder approved by Declarant with respect to its development of the Community and its sale or use of any Units which it owns within the Community, including the operation of a timeshare or similar program.  Notwithstanding anything contained in this Rule to the contrary, on any parcel designated by the Master Plan as a commercial parcel, the Owner or permitted occupant thereof may conduct business and its trade thereon unless otherwise forbidden by the ARB or applicable law;  

                (s)           Capturing, trapping, or killing of wildlife within the Community, except as expressly approved by the Board of Directors and as necessary to preserve the health, safety and welfare of Persons living within the Community or using its Common Areas;

                (t)            Any activities which materially disturb or destroy the vegetation, wildlife, wetlands, or air quality within the Community or which use excessive amounts of water or which result in unreasonable levels of sound or light pollution;

                (u)           Conversion of any carport or garage to finished space for use as an apartment or other integral part of the living area on any Unit without prior approval pursuant to Article IV;

                (v)           Anyone using the trials by foot, bike or motorized vehicles assumes the risk of any injury resulting from uneven paths; and   (w)          Any construction, erection, placement, or modification of any thing, permanently or temporarily, on the outside portions of the Unit, whether such portion is improved or unimproved, except in strict compliance with the provisions of Article IV of the Declaration. This shall include, without limitation, signs, basketball hoops, swing sets and similar sports and play equipment; clotheslines; garbage cans; woodpiles; above-ground swimming pools; docks, piers and similar structures; and hedges, walls, dog runs, animal pens, or fences of any kind; satellite dishes and antennas, except that: (i) an antenna designed to receive direct broadcast satellite services, including direct-to-home satellite services, that is one meter or less in diameter; (ii) an antenna designed to receive video programming services via multipoint distribution services, including multi-channel multi-point distribution services, instructional television fixed services, and local multipoint distribution services, that is one meter or less in diameter or diagonal measurement; or (iii) an antenna that is designed to receive television broadcast signals; (collectively, “Permitted Antennas”) shall be permitted on Units, subject to such reasonable requirements as to location and screening as may be set forth in the Architectural Guidelines, consistent with applicable law, in order to minimize obtrusiveness as viewed from streets and adjacent property. Declarant and/or the Association shall have the right, without obligation, to erect an aerial, satellite dish, or other apparatus for a master antenna, cable, or other communication system for the benefit of all or a portion of the Community, should any master system or systems be utilized by the Association and require such exterior apparatus.

                3.             Prohibited Conditions.  The following shall be prohibited within the Community:

                (a)           Plants, animals, devices, or other things of any sort whose activities or existence in any way is illegal, noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the Community;

                (b)           Structures, equipment, or other items on the exterior portions of a Unit which have become rusty, dilapidated, or otherwise fallen into disrepair; and

                (c)           Sprinkler or irrigation systems of any type which draw upon water from lakes, creeks, streams, rivers, ponds, wetlands, canals, or other ground or surface waters within the Community, except that Declarant and the Association shall have the right to draw water from such sources.

                4.             Leasing of Units.  “Leasing,” for purposes of this Rule, is defined as regular, exclusive occupancy of a Unit by any Person, other than the Owner, for which the Owner receives any consideration or benefit, including, but not limited to, rent, a fee, service, gratuity, or emolument.  All leases shall be in writing.  The Board may require a minimum lease term, which requirements may vary from Neighborhood to Neighborhood.  Notice of any lease, together with such additional information as may be required by the Board of Directors, shall be given to the Board by the Unit Owner at least ten (10) days before the execution of such lease.  The Owner must provide the lessee with copies of the Declaration, the Articles, the Memorandum of Association, and the Rules & Regulations.