Covenants, Conditions & Restrictions

Internal Roads.

1. Width of the right of way may be from seven meters up to fourteen meters

2. Lots of the Development will bear the corresponding easements needed for the placement, operation and maintenance of the Internal Roads and utilities as per the design provided by Declarant.

Water System.

3. A general water system for the Property, which will serve all lots, will be provided by the Declarant and or a public or private water company (ASADA).

4. Declarant, and/or public or private water company, will supply a system which is composed of: (1) water wells that will supply the system, for the non-exclusive water supply of the Development, (2) one or more storage tanks for the water system, (3) the corresponding delivery system (pipes, regulation valves and taps) for each of the lots, with water lines arriving to the property line of each lot.

5. Lots of the Development will bear the corresponding easements needed for the placement, operation and maintenance of the water system of the project, as per the design provided by Declarant and Property Owner hereby agrees to grant additional easements for water lines should this become necessary and such easements shall be subject to the approval of the Property Owner which shall not be unreasonably withheld.

Electric Power System.

6. A primary electrical power system will be provided by Declarant to a strategic point on the Property Owner's Property of the Declarant's choosing.

7. Lots of the Development will bear the corresponding easements needed for the placement, operation and maintenance of the electrical system (as well as any other line utilities systems) of the Property, as per the design provided by Declarant. Property Owner hereby agrees to grant additional easements for utility lines should this become necessary. Such easements shall be subject to the approval of the Property Owner which shall not be unreasonably withheld.

3. Disclaimer of Implied Covenants Nothing contained in this Declaration and nothing which may be represented to a purchaser of a lot by real estate brokers or salesmen shall be deemed to create any implied covenants, servitudes or restrictions with respect to the use of any property subject to this Declaration, except to the extent expressly provided in writing herein.

4. Entry Gate. An entry gate has been constructed at the entrance to the Project in order to limit access and provide security and privacy for Property Owners, Residents, and their Guests. The Association shall provide for a staff of security personnel to control ingress and egress from the development. Purchaser agrees herein to provide to the security personnel at the guardhouse a written list (including their Passport and or Cedula of Identification numbers) of authorized individuals who either live with or frequently visit the Purchaser’s home. It is expressly understood that the security personnel will make every reasonable effort to deny access to the Development to any individual or individuals who are not included on the ledger of authorized residents or visitors provided by each Property Owner. Other individuals will be denied access to the Development without the expressed consent of each Purchaser.

Each Purchaser and Resident hereby acknowledges on behalf of themselves and their families and guests that: (i) the entry gate does not guarantee the safety or security of the Purchaser and Residents or their families and guests: (ii) the entry gate does not guarantee that any unauthorized Person will not gain access to the Property; (iii) Declarant and the Association and their respective directors, officers, agents and employees do not represent or warrant that the entry gate may not be compromised or circumvented; and (iv) neither Declarant nor the Association nor their respective directors, officers, agents and employees shall be liable for any loss or damage resulting from unauthorized Persons gaining entry into the Property.

5. Developer´s Amenities. The Developer, either directly or through affiliates and/or subsidiaries, intends to provide a variety of amenities to Purchaser, Residents, and Guests by leases or other appropriate agreements with the Association (for purposes of this Declaration, each such lease or other agreement will be referred to as an "Amenities Agreement". Unless otherwise expressly provided in any such Amenities Agreement, use of the amenity covered by the Amenity Agreement will be on a non-exclusive basis. No such Amenities Agreement shall be deemed to create a Property Ownership or other similar right with respect to the amenity in the Association or in any Purchaser or Resident. Each such Amenities Agreement is expected to provide for payments by the Association in return for use of the amenity, and for suspension and/or termination of use rights for all or any Purchasers and/or Residents in the event that required payments are not made by the Association. It is expressly understood, and by acquiring any interest in the Property each Purchaser, Resident and other person hereafter acquiring any interest in the Property agrees, that amenities described in any such Amenities Agreement are made available for use by Purchasers, Residents and Guests only as provided in the Amenities Agreement and that other third parties (with or without any interest in the Property) may be given use rights with respect to the same amenities on such terms and for such periods as Declarant (or the affiliate or subsidiary of Declarant) may determine in its sole and absolute discretion.

6. Maintenance of Common Elements: The Administrator shall be solely responsible for the administration and preservation and maintenance of common elements and, rendering accounts for the purpose to the Home / Property Owners’ Meeting, which may in turn provide direction to the Administrator. Notwithstanding the forgoing such direction may also be issued by the Administrator from any Committees appointed by through the decisions of the Home/ Property Owners at the Home/ Property Owners Meeting with regards to matters under their supervision.

Building Procedure Rules

Approval by the Architectural Review Committee. (ARC)

1. Preliminary Review: The ARC will require the following documents prior to the Property Owner’s completion of a full set of architectural drawings and before the Property Owner invests time and money into their permit efforts:

   1. A completed ARC application

   2. .A complete Site Plan with a tree and topographic survey at a scale of 1/8 inch equals one foot or metric equivalent.

   3. A complete floor plan at a scale of ¼ inch equals one foot or metric equivalent.

   4. All four major elevation drawings or renderings at a scale of ¼ inch per foot or metric equivalent. These drawings should clearly indicate all exterior materials.

   5. Wall Sections and Details as necessary to interpret the plans, elevations, and special features including retaining walls, swimming pools and outbuildings.

The Property Owner must submit the above documents a full 30 days prior to the anticipated date where they will submit their full set of plans for permits. This will enable the ARC to call a meeting and to grant preliminary review approval in a timely fashion.

No construction, remodeling, landscaping, earth movement of any kind, or other improvements to Property Owner’s Property shall be commenced without the prior written approval of the Architectural Review Committee.

2. Final Review: Once Preliminary Review has been approved, then the Property Owner should direct their Architect to prepare a full set the following documents and or plans:

Building Materials and Structures.

1. All building materials and workmanship shall be first class.

2. Building materials should reflect a low environmental impact. Careful consideration shall be given to the selection of materials that are made of recycled materials, can be recycled, and/or are produced without waste of energy or resources. Special attention should be given to selecting paints, adhesives and other building components that do not produce significant off- gassing.

3. First floor at grade shall be reinforced to resist earthquake stresses and differential earth movement. Structures supporting floors above grade may be reinforced concrete, steel and/or wood. If wood is selected as a structural component, care should be taken to design such components to avoid termite infestation and provide moisture resistance.

4. The use of metal components on the exterior of any building is generally discouraged as a primary part of the building that can be seen from other portions of the Property ("Visible from Neighboring Property"). Care should be taken to protect metal building components from corrosion in the tropical climate. The use of wrought iron decorative components is permitted.

5. Exterior walls shall be stucco over reinforced concrete or Concrete Masonry Units (CMU). Wood stud walls and steel framing may also be used with CMU fills. No metal or vinyl siding shall be permitted.

6. Interior walls may be constructed of metal or wood studs with gypsum wallboard, plaster, concrete, CMU, glass in wood or metal frames or glass block. Wood may be used for open screens. When wood is employed, care should be taken to prevent termite infestations.

7. Walls should be finished in paint, textured plaster, tile, stone or other materials resistant to humidity. Fabric or vinyl wall coverings are discouraged.

8. Floors may be tile, stone, hardwood or other materials resistant to humidity and termites. Use of products with recycled content is encouraged.

9. Ceiling finishes may be painted gypsum board or concrete, hardwood or any other materials appropriate for the climate. Dropped acoustical panel ceilings are discouraged.

10. Flat roofs shall not be permitted. All roofs must provide adequate roof drainage into gutters sufficiently large to handle heavy rains

11. Sloping roof structures (trusses) may be of steel or wood structure with Colonial style curbed clay or rubber imitation clay tiles on top of the tin roof cover. Artificial, fire-resistant imitation thatched roofing shall be permitted on a limited basis as follows: Ranchitos, pool bars, outdoor patio covers or small accessory structures not to exceed 40 square meters of total area under roof. Due to the fire-danger element, no naturally thatched roofing shall be permitted within the Development.

12. No corrugated metal or plastic roofs finished or unfinished shall be permitted within the Development unless specifically authorized by the Architectural Review Committee. No asphalt shingles shall be permitted within the Development.

13. If skylights are used in the design, they shall be designed to resist high winds and heavy rain.

14. The Architectural Review Committee shall have the power to adopt additional or changed construction requirements from time to time hereafter to adapt to changes in building material and technology, but any such changes shall retain the general aesthetic established by this DECLARATION .

Building Process.

15. Prior to the start of any construction or remodeling, the corresponding approval must be obtained for the Building Permits and for all legal obligations as per Costa Rican laws.

16. Prior to commencement of the actual construction, the Property Owner must submit to the Architectural Review Committee a report document including: a) proof of having obtained the corresponding permits and approvals required by Costa Rican laws; b) the name of the building company and of the company that will be in charge of inspections; and c) a detailed list of the Persons who will be participating in the works (including full name and ID document number). The list of Persons will have to be updated on a weekly basis and presented to the Committee every week, for security reasons.

17. Permitted building hours are from six in the morning thru six in the afternoon, Monday thru Friday, and from six in the morning thru twelve noon on Saturdays. No building is permitted on Sundays.

18. Noise levels during the building process must be kept to the minimum reasonably possible. The Property Owner shall take the corresponding measures to minimize the level of noise.

19. No dust or emission should be produced that may directly affect neighboring properties or the environment in a material way. Dust and emission should be kept to the minimum level reasonably possible and the corresponding measures will be taken for those effects. The Property Owner shall take the corresponding measures to minimize the level of dust and emissions.

20. All trash and debris produced during the construction process must be properly disposed of promptly.

21. Building materials shall be stored on the building site. Materials shall be secured in such a manner as to resist movement from wind. A building materials temporary storage building and trailers shall be permitted during construction, if reasonably required. No other temporary buildings or shacks, and tents will be allowed.

22. Truck and building vehicles will be allowed only during permitted building hours. (6 am to 6 pm Monday through Friday and Saturday 6 am to 12 noon).

23. No parking of trucks or vehicles or storage of building materials will be permitted on the Internal Roads.

24. During the design process, as well as during the construction process, preventive measures must be taken to reasonably minimize erosion and for sediment and silt controls. Proper cover materials and restraining structures shall be used to avoid the start of any erosion or silt runoff or accumulation during the construction process.

25. All building of structures and other Improvements commenced shall be prosecuted diligently to full completion.

Liabilities.

Property Owner shall be liable for any damages and harms caused to third properties or Persons during the building process or as a consequence of the building process. Prior to the initiation of construction on Property Owner's property, Property Owner shall sign a contract indemnifying the Declarant from any liability which may arise out of the construction activities of the Property Owner. Additionally, Prior to the initiation of construction, Property Owners shall additionally present to Declarant proof of a liability insurance policy naming Declarant or Declarant’s Assignees as co-insured for any and all liability which may arise as a result of Property Owner’s or Property Owner’s representative’s construction activity. Liability coverage shall be a minimum of $500,000.

1. Review of Plans. The Architectural Review Committee may disapprove plans and specifications for any construction, installation, addition, alteration, repair, change or other work which must be approved by the Architectural Review Committee pursuant to this Article 3 if the Architectural Review Committee determines, in its sole and absolute discretion, that the proposed work violates any provision of this Declaration or the Design Guidelines, or is otherwise objectionable under the aesthetic standards established in the Property. In addition, the Architectural Review Committee may disapprove plans and specifications for any construction, installation, addition, alteration, repair, change or other work which must be approved by the Architectural Review Committee pursuant to this Article 3 even though the plans and specifications may be in substantial compliance with this Declaration and the Design Guidelines if the Architectural Review Committee, in its sole and absolute discretion, determines that the proposed construction, installation, addition, alteration, repair, change or other work, or some aspect or portion thereof, is unsatisfactory or aesthetically unacceptable. In reviewing the proposed plans and specifications, the Architectural Review Committee may consider any and all factors which the Architectural Review Committee, in its sole and absolute discretion, determines to be relevant including, but not limited to: (i) the harmony of the proposed Improvements with existing Improvements in the Property or with Improvements previously approved by the Architectural Review Committee but not yet constructed; (ii) the proposed location of the proposed Improvements in relation to existing topography, finished grade elevations, roads, Common Area and other structures; and (iii) the exterior design, finish materials and the color of the proposed Improvements. The Architectural Review Committee may approve plans and specifications which fail in some material way to comply with the requirements of this Declaration or the Design

Guidelines if the Architectural Review Committee, in its sole and absolute discretion, determines that some particular feature of the lot or the proposed Improvements allows the objectives of the violated requirements of this Declaration or the Design Guidelines to be substantially achieved. Also, the Architectural Review Committee may approve plans and specifications which fail to comply with the requirements of this Declaration or the Design Guidelines if the Architectural Review Committee, in its sole and absolute discretion, determines that the failure is not material. The provisions of this Article to do not apply to, and approval of the Architectural Review Committee shall not be required for, the construction, erection, installation, addition, alteration, repair, change or replacement of any Improvements or any other work made by, or on behalf of, Declarant. The approval required of the Architectural Review Committee pursuant to this Article 3 shall be in addition to, and not in lieu of, any approvals or permits which may be required under any federal, state or local law, statute, ordinance, rule or regulation.

2. Building Envelope. The portion of a lot within which Improvements, other than driveways, may be constructed ("Building Envelope") shall be determined by Declarant and shall generally be deemed to be within the confines of the flat building pad established by Declarant upon each individual lot. Any designs which require a cantilever over the edge of a slope or further excavation to affect an additional building pad, must first be approved by the Architectural Review Committee.

3. Construction of Improvements. Upon receipt of approval from the Architectural Review Committee for any construction, installation, addition, alteration, repair, change or other work, the Property Owner who had requested such approval shall proceed to perform, construct or make the addition, alteration, repair, change or other work approved by the Architectural Review Committee as soon as practicable and shall diligently pursue such work so that it is completed as soon as reasonably practicable and within such time as may be prescribed by the Architectural Review Committee.

4. No Changes Without Approval. Any construction, installation, addition, alteration, repair, change or other work approved by the Architectural Review Committee must be done or performed in accordance with the plans and specifications approved by the Architectural Review Committee. No change, deletion or addition to the plans and specifications approved by the Architectural Committee may be made without the prior written approval of the Architectural Review Committee.

5. Review Fee. The Architectural Review Committee shall have the right, but not obligation, to charge a fee for reviewing requests for approval of any construction, installation, alteration, addition, repair, change or other work pursuant to this Article 3, which fee shall be payable at the time the application for approval is submitted to the Architectural Review Committee. The fee charged by the Architectural Review Committee may include the actual or estimated fees or costs incurred or anticipated to be incurred by the Architectural Review Committee in consulting with an architect or engineer with respect to the plans submitted. The fee for comprehensive review of construction plans shall be reasonable and customary with similar services offered by licensed architects and or engineers in the region.

6. New Construction. All Improvements constructed on lots shall be of new construction, and no buildings or other structures shall be removed from other locations on to any lot.

7. No Warranty. The approval by the Architectural Review Committee of any construction, installation, addition, alteration, repair, change or other work pursuant to this Article 3 shall not be deemed a warranty or representation by the Architectural Review Committee as to the quality of such construction, installation, addition, alteration, repair, change or other work or that such construction, installation, addition, alteration, repair, change or other work conforms to any applicable building codes or other federal, state or local law, statute, ordinance, rule or regulation.

8. Conditional Approval. The Architectural Review Committee may condition its approval of plans and specifications upon the agreement by the Property Owner submitting such plans and specifications to furnish to the Association a satisfactory insurance policy which adequately covers the Property Owner for liability insurance. Property Owner must submit a letter to the ARC indemnifying and holding harmless the Declarant for any and all injuries to third parties which may occur upon the Property Owner's property.

9. Improvements to Common Areas or Areas of Association Responsibility. If the plans and specifications pertain to an Improvement which is within any Common Area or Area of Association Responsibility, the Architectural Review Committee may condition its approval of the plans and specifications for the proposed construction, installation, addition, alteration, repair, change or other work with respect to the Improvement upon the agreement of the Association to assume all costs for the future cost of the repair, maintenance or replacement of such Improvement.

10. Architectural Review Committee. The Architectural Review Committee shall consist of three regular members and two alternate members.

11. Architectural Review. Absolutely no construction or remodeling shall be permitted within the Development without the written approval of the Architectural Review Committee.

12. Plan Submission Procedure. A complete set of architectural plans must be submitted to the ARC thirty days in advance of the initiation of any and all construction or remodels within Flamingo Mar Vista. The construction plans must be delineated in Spanish and must be submitted to the ARC prior to review by the Costa Rica College of Architects, Municipality of Santa Cruz, and SETENA.

13. General Conformity. All construction must conform to the general architectural style of the Development which is “Spanish Colonial, Mediterranean, or Contemporary Mediterranean, Tropical Mediterranean”.

14. Architectural Style. The general Architectural Style of the Development shall be “Spanish Colonial, Mediterranean, Tropical Mediterranean or Contemporary Mediterranean”. These styles are widely recognized by Costa Rican Architects and samples of these styles, as well as a list of recommended architects, may be obtained by appointment from the Declarant.).

15. Exterior Walls. Exterior walls must be constructed with block or pre-cast concrete, steel and cement board, steel and fibro-cement board, or steel and Styrofoam with metal mesh and cement stucco or any other material which may be approved by the ARC as new building methods and materials become available.

16. Exterior Wall Finish. All exterior walls must be stuccoed and finished in one or more of the following colors: white, off-white, beige, terracotta, peach, gold or light brown. No other colors for exterior walls shall be permitted without the express written prior consent of the ARC.

17. Roofs. Roofs of all buildings with the exception of small accessory structures as described under 3.1.3.K shall be covered in traditional terracotta colored tiles known as "Teja". Simulated Teja fabricated from rubber or plastic shall be permitted. No wooden shingles shall be permitted on any structure within the Development.

18. Fences. Fences shall be constructed of block or formed concrete and limited to the same colors as the exterior walls as described above. No barbed wire fences shall be permitted. No chain link fences shall be permitted unless by special written permission of the ARC.

19. Permitted Structures. Within each titled lot within the Development only the following structures will be permitted:

    1. One Main House. The main house shall not comprise less than 66% of the total structure construction which shall be permitted and approved by the ARC to be constructed upon any titled lot within the Development.

    2. One Service House. This service house may be used as a guard house, maid's quarters or guest house or a combination thereof. The service house shall maintain the same design standards and be subject to the identical procedure for review and approval by the ARC as the main house. The service house shall not comprise more than 25% of the total structure construction which shall be permitted and approved by the ARC to be constructed upon any titled lot within the Development.

    3. One Utility Structure. The utility structure may be in the form of a garage or storage building but shall maintain the same design standards and be subject to the identical procedure for review and approval by the ARC as the main house and shall not comprise more than 20% of the total structure construction which shall be permitted and approved by the ARC to be constructed upon any titled lot within the Development.

    4. One Swimming Pool. The swimming pool size will be included in the calculation for a total lot coverage not to exceed 20% of the size of the titled lot within the Development. The design for the swimming pool shall maintain the same design standards and be subject to the identical procedure for review and approval by the ARC as the main house.

Design Restrictions.

5. All structures within the Development must conform to the specific Colonial Mediterranean, Tropical architectural style as displayed by Declarant. Furthermore, all structures within the Development must conform with all local building codes, health codes, environmental codes, municipal codes, and the general rules and laws of Costa Rica applicable to construction, environmental impact and sustainable development.

6. All building and remodeling plans must be submitted for approval to the Architectural Review Committee thirty days prior to the initiation of any construction.

Size Regulations.

1. The minimum size for main house is 150 square meters.

2. The maximum “footprint” of the construction for main house and accessory structures including swimming pool is 15% of the total lot size.

Height Regulations.

1. Maximum permitted number of floors for the main house shall be two floors unless otherwise limited within the terms of the sales contract. Maximum permitted design height for the two floors combined shall be eight and one half meters, measured from adjacent natural grade.

2. Height of building is considered to be the distance between the ground level and the top level of the roof (highest roof feature). On sloping sites, height of building will be measured from the point where the ground level meets the base of the floor on the first floor level of the building.

1. Swimming Pools. The gross measurement of the pool shall be considered as an integral part of the measurement of the total construction for lot coverage calculation purposes.

2. Sports Accessory Construction. No sports fields or courts shall be permitted within the Development other than those which are back yard or driveway based courts (basketball, soccer, badminton, volleyball) for the private use of an Owner on Owner’s property or which have been built by Declarant or the Association.

Fencing/Walls.

1. The marking of the boundaries of the Property will be done by means of a wall or a fence whose design, finish and color must be pre-approved by the Architectural Review Committee at least thirty days prior to the initiation of construction of the fence.

2. All fences must be set back one meter from the boundary of a Property to allow for the planting of flowering hedge type landscaping in order to soften the visual impact of the fence.

3. All fences must be set back one meter from the boundary of a Property to allow for the free roaming of the indigenous fauna of the area.

4. The height of a perimeter wall or fence shall not exceed eight feet.

5. All designs for fencing must first have a full set of plans submitted to the ARC for a thirty day review period prior to the initiation of construction

6. Fencing such as unfinished concrete or block walls, cyclone, barbed wire or any other undesirable fencing are not permitted within the Development.

7. Vegetation divisions, ranch style fences, and Guanacaste style stone walls are permitted but subject to review and approval by the ARC thirty days prior to the initiation of construction.

3. Sewage. Each structure which contains a sink or a bathroom must have its own septic or individual water treatment plant, to treat sewage and effluent. The corresponding system will have to be designed in a way that it does not materially affect the environment nor produce any material quantity of odors or effluents that may affect the environment, adjacent properties or any type of water streams (whether permanent or seasonal). The waste-water system must meet or exceed SETENA and Costa Rica Health Department requirements. Design for the septic system and or sewage treatment plant must be submitted for review and approval to the ARC thirty days prior to the initiation of construction.

4. Drainage. Drainages, for sewage treatment systems, roof gutters and all pluvial waters, must be designed and built in such a way that they reasonably minimize runoff consequences, do not materially affect the environment, adjacent properties or any type of water streams (whether permanent or seasonal), nor produce any material quantity of odors or effluents that may affect the environment, adjacent properties or any type of water streams (whether permanent or seasonal).

5. Disruption of Natural Habitat and Environmental Impact. All c onstructions, buildings, landscaping and in general all works within the Property must be designed, built and maintained in such a manner as to reasonably minimize the impact upon the environment and natural habitat of the Property.

6. Exterior Lighting. Exterior lighting shall be positioned in such a manner so as to be directed vertically towards the ground and/or screened so that it will not be Visible from Neighboring Property. No flashing lights or neon lights shall be permitted. For security reasons, lights that turn on for short periods of time and immediately turn off can be placed as long as they are not directed towards other properties. Emergency generators shall be permitted, but shall be screened from view and acoustically isolated from adjacent properties. The use of low energy consumption bulbs and LED bulbs are strongly encouraged throughout the entire Development.

7. Variances. The ARC has the authority to and may occasionally grant certain variances when there is valid justification and where the variance does not have a negative impact on the adjacent properties or the neighborhood. All variances from these Guidelines, which are requested, must be indicated on the Application for Design Review with a substantial justification narrative. The ARC may not grant a variance to a Covenant which is regulated by local Municipal or Costa Rican Law.

8. Water Storage: Every home built within the Development must feature within its design, construction plans a tank for water storage. These tanks may be constructed from formed concrete or PVC. In no event may these tanks be visible from the street or from a neighbor’s property. They must either be of an “in-ground” type or completely enclosed so as to prevent any visual impact to the neighbors. The minimum water storage capacity shall be five-thousand liters.

9. Rain-water Collection System: In order to show good faith with the Costa Rican Government’s commitment to reduce its “Carbon Imprint” and in keeping with the development’s Green Orientation, every Property Owner is encouraged to install a rain-water collection system to reduce our dependence on external sources of water for bathing, washing of clothing, flushing of toilets, and irrigation of lawns and landscaping.

10. Photovoltaic Solar Sources of Alternative Power: In order to show good faith with the Costa Rican Government’s commitment to reduce its “Carbon Imprint” and in keeping with the Development’s Green Orientation, every Property Owner is encouraged to install a Solar generation system. Contractors who specialize in the installation of these systems shall be referred by request by the Architectural Review Committee.

11. Farm Grown or MINAET Certified Hardwoods Only: The Association strongly encourages the use of farm-grown or MINAET Certified hardwoods in any and all construction.

12. Cross Ventilation Design: It is strongly encouraged to employ the use of “Cross- Ventilation designs in the planning and design of any residential structure within the Development.

13. Double Tank Septic and Individual Sewage Treatment Plants: The Association strongly encourages the use of Double Tank Septic Systems within the Development.

14. Native Species Low Water Consumption Landscaping: The Association strongly encourages Landscaping designs which utilize at native, low water consumption plants and grasses. The irrigation system of choice within the Development is a "Drip" system which conserves water.

15. Landscaping View Corridor Regulations: Property Owners are obligated to design landscaped areas and to install and maintain appropriate plant materials and structures in such a way to preserve existing views from surrounding residential properties. No Property Owner shall block the horizontal view corridor of another Property Owner’s Property with any landscaping. The view corridor for a given Property is measured horizontally from the level of the slab and continues vertically from that point. No landscaping shall be permitted to penetrate this defined level where a neighboring property's view line exists. Should a dispute arise as to views becoming obstructed, Property Owners shall report the obstruction to the Administrator for review and a decision as to the need or not for alterations or removal of landscape materials. Should Property Owners not be satisfied with the decision of the Administrator, Property Owners or the Administrator may refer the matter to the Architectural Review Committee within 14 days of the Administrator’s decision

Inspections.

1. Right to Inspect During Constuction. Any member of the Architectural Review Committee will have the right, upon reasonable notice, and during a reasonable time of day, to enter any Property or Construction within the Development to inspect for the purposes of ascertaining whether construction is proceeding in accordance with the Guidelines, the approved plans and specifications, or other procedures and standards applicable and in force as herein described in this Declaration.

2. Schedule of Inspections. The Property Owner will coordinate with the Architectural Review Committee to schedule any inspection deemed appropriate by the Committee for new constructions and for additions or alterations.

3. Inspection of New Constructions. All new constructions are subject to a final inspection by the Committee, during which the Committee may verify the following:

Inspection of Alterations and Additions.

Alterations and additions are subject to a final inspection, which is the same as the one required for the New Construction Inspection as described above.

Further Subdivision, Property Restrictions, Re-zoning and Timeshares.

No Residential Lot shall be further subdivided or separated into smaller lots or parcels by any Property Owner other than Declarant, and no portion less than all of any such lot shall be conveyed or transferred by any Property Owner, other than Declarant, without the prior written approval of the Architectural Review Committee and the Municipality of Santa Cruz. No further covenants, conditions, restrictions or easements shall be recorded by any Property Owner, Lessee, or other Person other than Declarant against any lot without the provisions thereof having been first been approved in writing by the Architectural Review Committee. No application for re-zoning, variances or use permits pertaining to any lot shall be filed with any governmental authority by any Person, other than Declarant, unless the application has been approved by the Architectural Review Committee and the proposed use otherwise complies with this Declaration. No lot shall be subjected to or used for any timesharing, or timesharing participants.

Vehicles and Parking.

1. As used in this Section 4.15, the term "Motor Vehicle" means a car, van, truck, recreational vehicle, motor home, motorcycle, all terrain vehicle, utility vehicle, pickup truck, boat or other motor vehicle.

2. No Motor Vehicle or other similar equipment or vehicle may be parked, kept or stored on any Lot other than in the Garage or Driveway of the Property Owner’s home. No motor vehicle of any kind may be parked in excess of twelve hours and or stored within the Common Area or Areas of Property Owner’s Association or Declarant’s Responsibility without the prior written approval of the Declarant or the Architectural Review Committee.

3. Except as permitted by Subsection 4.15.4 or 4.15.5, no Motor Vehicle may be parked, kept or stored on any lot or the Common Area without the prior written approval of the Architectural Review Committee. No Motor Vehicle shall be parked, kept or stored on any street within the Property.

4. The Board of Directors of the Homeowners Association shall have the right and power to adopt rules and regulations governing the parking of Motor Vehicles on lots and Common Area and implementing the provisions of this Section 4.15. In the event of any conflict or inconsistency between the provisions of this Section 4.15 and the rules and regulations adopted by the Property Owner’s Association Board of Directors, the provisions of this Section 4.15 shall prevail.

5. No Motor Vehicle shall be constructed, reconstructed or repaired on any Lot or Common Area or Area of Property Owner’s Association Responsibility. No inoperable Motor Vehicle may be stored or parked on any Lot or Common Area or Area of Property Owner’s Association Responsibility.

6. Each lot must provide parking areas for a minimum of three Motor Vehicles. The Property Owner’s Association Board of Directors shall have the right to have any Motor Vehicle which is parked, kept, maintained, constructed, reconstructed or repaired in violation of this towed away at the sole cost and expense of the Property Owner of the Motor Vehicle. Any expense incurred by the Association in connection with the towing of any Motor Vehicle shall be paid to the Association upon demand by the Property Owner of the Motor Vehicle.

7. All parking required for residential and commercial construction shall be provided specifically on the related site. No parking shall be permitted on a daily basis along the common streets, save and except for special occasions where notification shall be provided to the Administrator or their Staff. Where it is deemed appropriate for special occasions, parking may be authorized by the Administrator along the common area streets for a limited period of time. In no case whatsoever, shall any automobile parking be permitted on any common green areas or private landscaped areas. Any unauthorized parking on any common lands or roadways shall be subject to a fine of not less than $100 US per day.

14. Variances. The Architectural Review Committee may, with the approval of the Property Owner’s Board of Directors, grant variances from the restrictions set forth in this Article 4 if the Architectural Review Committee determines in its discretion that (i) a restriction would create an unreasonable hardship or burden on an Property Owner, Lessee or Resident or a change of circumstances since the recordation of this has rendered such restriction obsolete and (ii) the activity permitted under the variance will not have any substantial adverse effect on the Property Owners, Lessees and Residents of the Property and is consistent with the high quality of life intended for residents of the Property.

15. Drainage No residential unit, structure, building, landscaping, fence, wall or other Improvement shall be constructed, installed, placed or maintained in any manner that would obstruct, interfere with or change the direction or flow of the drainage of pluvial water in accordance with the drainage plans for the Property, or any part thereof, or for any Lot as shown on the drainage plans on file with the Architectural Review Committee.

16. Rooftop HVAC Equipment Prohibited: No heating, ventilating, air conditioning or evaporative cooling units or equipment related thereto may be mounted, installed or maintained on the roof of any residential unit or other building so as to be visible from any neighboring Property.

17. Lawns, Gardens, & Sprinkler System. Due to the extremes of heat and wind prevalent in our area, and the commensurate rapid evaporation which occurs, every Home/Property Owner is strongly encouraged to engage the use of a “drip irrigation” system for their lawns and gardens. Additionally, in keeping with the Development’s Green Orientation, every home or Lot Property Owner is strongly encouraged to engage the use of native plants and grasses which are will survive the extremely dry, hot, and windy conditions prevalent during our extended dry season and which will require low consumption of water and irrigation.

Permitted Uses

Absolutely no commercial or industrial use of dwellings and or lots shall be permitted within the Development.

House rentals are permitted subject to the following rules: (i) Rental is permitted only for residential use, (ii) Any rental for any other use or purpose (including commercial, service, professional services, or industrial uses or purposes) is prohibited.

1. Renters and Property Owners are equally obliged to conform to the provisions contained within this DECLARATION.

2. For security reasons, Property Owners must notify the Association in writing, with three days of advance notice, of any renters who will be renting Property Owner’s home. For security purposes, Property Owner will provide the Association with full names and passport numbers of all renters.

   1. Trash. No burning of any type (exception made of that caused by barbecues) is permitted. No throwing, dumping, burning or burial of trash or solid wastes is permitted. Trash or solid wastes should be bagged or contained, screened from public view, protected from

disturbance and disposed of with reasonable promptness through the corresponding trash disposal service. Properties are to be kept free of any trash, debris or refuse of any kind, whether they are vacant or improved. Recycling is strongly encouraged. It is prohibited to discard any objects or waste in common areas. Garbage shall not be deposited in any place within the Development other than the cans placed out on the curb of the road or right of way upon which the home sits, or the “refuse area” specifically allocated to and designed for the purpose. Any extra garbage that is the result of construction , landscape works, renovations, remodeling or other similar work may not be left in any Common Areas, unless however, prior consent is given by the Administrator, for permission to store garbage for no more than twenty-four hours. No building or landscape materials, rubbish, trash, garbage, or recyclable materials shall be allowed to accumulate on lots and shall not be deposited in any place other than those areas specifically allocated to and designed for that purpose.

2. Effluents, Hazardous or Dangerous Materials, Activities or Improvements. No toxic, odorous or dangerous effluents are allowed within the Property. Car washing is permitted within the Property provided that the corresponding effluents are taken care of in such a way that no material pollution or other adverse effect is caused to the environment, the adjacent properties or any type of water streams (whether permanent or seasonal). It is absolutely prohibited to keep inside the Development any type of natural or chemical substances or products which may produce smoke, fowl odors, stains, etc., or which are flammable, or which may present any potential danger toward the welfare and safety of the persons, the buildings, structures, common areas and works within the Development or surrounding Properties. No activities shall be conducted, nor shall any improvements or renovations be undertaken on any properties, which may be regarded to be unsafe or hazardous to any person or Property. Absolutely no fires or setting off or lighting fireworks displays are permitted on any of the lots or common areas within or surrounding the Development.

3. Water Use. In all cases and instances, water must be used in a justified, sensible and efficient way. Unjustified abuse of the water resource will be sanctioned by higher rates.

   1. While it is not anticipated that there shall be any water shortages, in the event of a water shortage, garden watering shall be prohibited until such a water shortage has terminated as determined and notified by the Property Owner’s Association Board of Directors.

   2. Replacement of pool water will only be permitted as periodically technically justified or in justified extraordinary cases.

4.25 Hunting and Trapping. No hunting or trapping of any kind is permitted within the Development.

4,26 Storage of Goods. Storage of chemicals, fuels (over 25 gallons), or any other toxic or dangerous substances is strictly prohibited.

4.27 Security System. The security system serving each residence shall be operated, monitored and maintained in accordance with the provisions of a Security Services Agreement approved by the Home / Property Owners Association. Neither the Property Owner’s

Association, nor the Declarant shall bear any responsibility for the proper function and efficacy of an individual Home Security System. Any residences having more than three false home alarms in one year may be charged an administration fee over and above any fines charged by the authorities responding, to compensate for disturbances and related administration within the condominium. There shall be no recourse or appeals for such related charges.

Easements for Use of Common Area.

1. Every Property Owner and Resident and their guests shall have a right and easement of enjoyment in and to the Common Area. Many areas within the Property have been permanently set aside as Environmentally Sensitive Areas of Protection. As such, a Dominant Ecological Easement has been created with certain limitations thereto which have been permanently affixed to the deed of much of the titled lands within the Development. Every residential Lot within the Property shall be subject to the limitations of the Dominant Ecological Easement. Additionally, every lot and its Property Owner are subject to:

   1. The right of the Property Owner’s Association Board of Directors to adopt rules, regulations or policies regulating the use of the Common Area including rules, regulations and policies limiting the number of guests who may use the Common Area and restricting or prohibiting access to such portions of the Common Area or Areas of Association Responsibility (such as landscaped areas) not intended for use by the Property Owners, Lessees or Residents.

   2. The right of the Property Owner’s Association Board of Directors to suspend the right of an Property Owner and such Property Owner's family, tenants and guests to use the Common Area (other than the right of an Property Owner and such Property Owner's family, tenants and guests to use any streets which are part of the Common Area for ingress or egress to the Property Owner's lot) if such Property Owner is more than thirty

(30) days delinquent in the payment of Assessments or other amounts due to the Association or if the Property Owner has violated any other provisions of this or other governing documents and has failed to cure such violation within fifteen (15) days after the Association notifies the Property Owner of the violation.

3. The rights and easements granted to Declarant by this Declaration.

4. The right of the Property Owner’s Association or the Declarant to rent or lease any portion of the Common Area on a short-term basis to an Property Owner or Resident for their and their invitee’s temporary exclusive use for a “special event”.

5. The right of the Declarant to charge reasonable admission or other fees for the use of any recreational facility or amenity situated outside the Common Area:

6. The right of the Declarant to permit the use of any recreational facility or amenity situated outside the Common Area by Persons other than Property Owners or Residents and their guests upon payment of such fees as may be established by the Declarant.

2. If a Lot is leased or rented by the Property Owner thereof, the Lessee and the members of the Lessee's family residing with such Lessee shall have the right to use the Common Area during the term of the lease.

3. The right of easement and enjoyment of the Common Area may not be transferred or assigned except upon the conveyance or transfer of the Lot to which such right is appurtenant.

1. View Easements. A permanent view easement shall be granted to each titled segregated Lot within the Development. In no event shall any construction within the Development obstruct the horizontal view from slab level of the first floor of the main house in excess of 15% of the global scope of the ocean view in a westward direction to Brasilito Bay, as well as north-west- wardly towards Flamingo and Potrero Bays. Notwithstanding the previous provision, the view corridor impact of each and every structure within the Property must be approved by the Architectural Review Committee thirty days prior to the initiation of any construction..

Utility and Development Easements

1. A non-exclusive, perpetual blanket easement is hereby granted to the Declarant and Association over and through the Common Area and Areas of Association Responsibility (except that no easements may be granted which run or will run under a building except to serve such building) for the purpose of: (i) installing, constructing, operating, maintaining, repairing or replacing equipment used to provide to any portion of the Property or adjacent land any utilities, including, without limitation, water, sewer, drainage, gas, electricity, telephone and television service, whether public or private; and (ii) ingress and egress to install, construct, operate, maintain, repair and replace such equipment. Such easement is hereby granted to any Person providing such utilities or installing, constructing, maintaining, repairing or replacing equipment related thereto. Any pipes, conduits, lines, wires, transformers and any other apparatus necessary for the provision or metering of any utility may be installed or relocated only where permitted by Declarant, where contemplated on any site plan approved by Declarant or where approved by resolution of the Board. Equipment used to provide or meter such utilities or services may be installed above ground during periods of construction if approved by Declarant. The Person providing a service or installing a utility pursuant to this easement shall install, construct, maintain, repair or replace the equipment used to provide or meter the utility as promptly and expeditiously as possible, and shall restore the surface of the land and the surrounding vegetation and improvements to their original condition (to the extent practical) as soon as possible.

2. The Declarant hereby reserves to itself and to its successors and assigns, and also grants to the Association, the right to grant and reserve easements, rights-of-way and licenses over and through the Common Area, any lot owned by Declarant or any other lot with the consent of the Property Owner thereof for the purposes set forth in Section 5.2.1 or for any other purpose necessary or desirable for the orderly development of the Property or adjacent land. If the Person installing the utility or providing a service requests a specific easement by separate recordable

documents, then Declarant or the Association shall have the power to record a document locating such easements.