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HomeMy WebLinkAboutSupplemental Declaration of Covenants and Restrictions for Towns,CPf t'CJ f SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR AMBLESIDE 2021092994 DECL $25.00 12/30/2021 09:06:51A 53 PGS Jennifer Hayden HAMILTON County Recorder IN Recorded as Presented TOWNS Hamilton County, Indiana SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR AMBLESIDE TOWNS This Supplemental Declaration of Covenants, Conditions and Restrictions for Ambleside Towns (the "Supplemental Declaration") is made as of December 29, 2021 by Hoffman Developer, LLC, an Indiana limited liability company, (the "Supplemental Declarant"). RECITALS: A. Supplemental Declarant is the owner of a certain parcel of real estate located in City of Carmel, Hamilton County, Indiana and particularly described on Exhibit "A" attached hereto and incorporated herein by this reference (the "Real Estate"); and B. Supplemental Declarant is the owner of the real estate located in City of Carmel, Hamilton County, Indiana and particularly described on Exhibit "B" attached hereto and incorporated herein by reference, along with all real estate contiguous therewith (the "Additional Real Estate"); and C. The Real Estate together with such portions of the Additional Real Estate as may be made subject to this Supplemental Declaration per the terms of Article II below, as the same has been subdivided and platted, and any additions thereto which, from time to time, may be subjected to the covenants, conditions, restrictions, reservations, easements, charges and liens of this Supplemental Declaration shall be hereinafter referred to as the "Property"; and D. The Property is being developed for a neighborhood of Townhome Dwellings, as hereinafter defined, called "Ambleside Towns", which is part of the Ambleside subdivision. E. The Property is also subject to that certain Declaration of Covenants, Conditions and Restrictions of Ambleside recorded in the Office of the Recorder of Hamilton County, Indiana, on`D9C. �SCt, 2021, as Instrument No. ?P IaqZ �, as amended from time to time (the "Declaration"); F. Supplemental Declarant desires to provide for the preservation of the values of Ambleside Towns, and to provide for the maintenance of the Dwelling Units and Lots, as both are hereinafter defined, and, to this end, declare and publish its intent to subject the Property to the covenants, conditions, restrictions, easements, charges and liens hereinafter set forth, it being intended that they shall run with title to the Property and shall be binding on all persons or entities having or acquiring any right, title or interest in the Property or any part thereof and shall inure to the benefit of each owner thereof, and G. Supplemental Declarant has deemed it desirable for the efficient preservation of the values of Ambleside Towns to create an Supplemental Association to be known as the Ambleside Towns Homeowners Association, Inc., an Indiana not -for -profit corporation (the "Supplemental Association"), to which shall be delegated and assigned the powers of maintaining certain portions of the Property, administering and enforcing the covenants and restrictions made in and pursuant to this Supplemental Declaration with respect to the Property, collecting and disbursing the assessments and charges hereafter created with respect to the Property, and promoting; the recreation, health, safety and welfare of the owners of the Property and all parts thereof, and NOW, THEREFORE, Supplemental Declarant declares that the Property shall be held, transferred, sold, conveyed, hypothecated, encumbered, leased, rented, used, improved, and occupied subject to the provisions, agreements, covenants, conditions, restrictions, reservations, easements, assessments, charges and liens hereinafter set forth, all of which are for the purpose of protecting the value and desirability of, and shall run with, the Property and be binding on all parties having any right, title or interest in the Property or any part thereof, their respective successors and assigns, and shall inure to the benefit of Supplemental Declarant and the successors in title to the Property or any part or parts thereof. ARTICLE I DEFINITIONS Section 1.1 "Supplemental Association" shall mean and refer to the Ambleside Towns Homeowners Association, Inc., an Indiana not -for -profit corporation, and its successors and assigns. Section 1.2 "Articles" shall mean and refer to the Articles of Incorporation of the Supplemental Association, as the same may be amended from time to time. Section 1.3 "Authority Transfer Date" shall have the meaning ascribed thereto in Section 3_1 of this Supplemental Declaration. Section 1.4 "Board of Directors" shall mean the elected body having its normal meaning under Indiana corporate law. Section 1.5 "Budget Meeting" shall mean the annual or special meeting of the Supplemental Association, subsequent to the Authority Transfer Date, at which the Owners shall be asked to approve the Supplemental Association's budget for a particular fiscal year. Section 1.6 "Builder" shall mean and refer to Pulte Homes of Indiana, LLC, an Indiana limited liability company, or its successors and assigns. Section 1.7 "Bylaws" shall mean and refer to the Bylaws of the Supplemental Association, as the same may be amended from time to time. Section 1.8 "City" shall mean the City of Carmel, Indiana. Section 1.9 "Common Area" or "Common Areas" shall mean and refer to all real property (including the improvements thereto) in Ambleside for the common use and enjoyment of the Members and the other owners in Ambleside. All of the Property which is not included in any particular Lot or which is not dedicated to and accepted by a local public authority, as shown on current or future approved plats of the Property and/or as described herein, shall be considered to be a part of the Common Area. 2 Section 1.10 "Common Expenses" shall mean and refer to (i) expenses of administration of the Supplemental Association, (ii) expenses for the Exterior Maintenance and reasonable reserves for the Dwelling Units, as provided in this Supplemental Declaration, (iii) all sums lawfully assessed against the Owners by the Supplemental Association, and (iv) all other sums, costs and expenses declared by this Supplemental Declaration to be Common Expenses. Section 1.11 "County" shall mean the County of Hamilton, Indiana. Section 1.12 "Development Period" shall mean the period of time commencing with Supplemental Declarant's acquisition of the Property and ending on the termination of the Class B Membership in the manner set forth in Section 3.1 below. During the Development Period, the Supplemental Declarant reserves the right to facilitate the development, construction, and marketing of the Property, and the right to direct the size, shape and composition of the Property. Section 1.13 "Dwelling Unit" shall mean any improvement to the Property intended for any type of independent ownership for use and occupancy as a residence by a single household and shall, unless otherwise specified, include within its meaning (by way of illustration but not limitation) a townhome. Section 1.14 "Dwelling Unit Insurance" shall mean an insurance policy in the form HO-6, with Coverage A and Special Perils with the following coverage and minimum levels of insurance: liability coverage in a minimum amount of $500,000; sewer and drainage backup coverage in a minimum amount of $5,000; and loss assessment coverage in a minimum amount of $5,000. The Board of Directors shall have the right, from time to time to both (i) increase the required levels of coverage, and (ii) to change the description of the types and forms of insurance to be included within the definition of Dwelling Unit Insurance in the event that the forms of such an insurance policy are modified, including coverages and endorsements. Any such increase or change shall be effective upon written notice to the Owners. Section 1.15 "Exterior Maintenance" shall mean (i) the maintenance, repair, and replacement of Dwelling Unit roofs and all exterior walls and improvements of a Dwelling Unit including exterior shutters, exterior windows, exterior doors, siding, and exterior architectural elements; (ii) replacement of exterior light fixtures; (iii) the painting of the exterior faces of the walls of the Dwelling Units, including associated trim and the exterior of garage doors; (iv) the Supplemental Association Yard Maintenance; (v) the removal of snow on driveways, entry stoops, and all sidewalks once snow has accumulated to two inches (2") or more; (vi) the repair and replacement of driveways, sidewalks located between driveways and entry stoops, and entry stoops; (vii) the maintenance, repair and replacement of mailboxes and supporting posts that serve each Dwelling Unit; (viii) the maintenance, cleaning, repair, and replacement of gutters and downspouts attached to each Dwelling Unit; (ix) the maintenance, repair, and replacement of all decks, patios, and surrounding fencing to the extent such items were installed by Supplemental Declarant or Builder as a part of the original construction of a particular Dwelling Unit (with the responsibility for any later additions or improvements made to such decks, patios, and surrounding fencing to be included within Owner Yard Maintenance, below); (x) the replacement of garage doors; (xi) caulking, painting and replacement of all entry doors to Dwelling Units; (xii) caulking, W repairs to frames, painting and replacement of all exterior windows on Dwelling Units; (xiii) opening, closing and maintenance of irrigation systems, if any, installed by Supplemental Declarant or Builder on a Lot; and (xiv) maintenance, repair, and replacement of underground storm water, water, and sanitary sewer lines serving the Dwelling Units to the extent such lines are located between (A) the street or streets fronting the corresponding Dwelling Unit and (B) the service meter for the corresponding utility service, provided such maintenance, repair, or replacement is not otherwise the responsibility of the provider of such utility service. The Supplemental Association shall have the authority to adopt such standards regarding Exterior Maintenance as it may from time to time consider necessary or appropriate, which shall be effective immediately following adoption. Notwithstanding anything in the foregoing definition to the contrary, Exterior Maintenance shall not include any Owner Maintenance, any Owner Yard Maintenance, any Owner Damage Repairs or any maintenance of the slab floors of the Dwelling Units. The costs of performing Exterior Maintenance shall be included within Common Expenses and recovered by the Supplemental Association through both Regular Assessments and Special Assessments as more particularly described in Article V of the Supplemental Declaration. Section 1.16 "Federal Agencies" shall mean (by way of illustration but not limitation) the Federal Housing Authority, the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Department of Housing and Urban Development, the Veterans Administration or any other governmental agency. Section 1.17 "Flowerbeds" shall mean those flowerbeds, if any, installed on a Lot by an Owner with the prior approval of the Architectural Review Board as referenced in Section 6.6 of the Supplemental Declaration. Section 1.18 "Governing Documents" means this Supplemental Declaration, the Articles of Incorporation filed with the Indiana Secretary of State, Bylaws, Rules and Regulations and all other rules and regulations promulgated by the Supplemental Association pursuant to this Supplemental Declaration, and resolutions of the Board, as each may be adopted and amended from time to time. Section 1.19 "HOA Act" shall mean Article 32.25.5 of the Indiana Code, as the same may be modified from time to time. Section 1.20 "Local Governing Authority" shall mean the City and/or the County, individually or collectively. Section 1.21 "Lot" shall mean and refer to any discrete plot of land created by and shown on a lawfully recorded subdivision plat of the Property upon which a Dwelling Unit could be constructed in accordance with applicable zoning ordinances; provided, however, that where a Dwelling Unit (i) is separated from an adjacent Dwelling Unit by a Party Wall, or (ii) shares a Party Wall with an adjacent Dwelling Unit, the center line of such Party Wall and its vertical extensions shall constitute the common boundary line (Lot line) between adjacent Lots, and the closure of the boundary lines of such adjacent Lots shall be accomplished by extending perpendicular lines from the horizontal extremities of such Party Wall to the closest boundary line or lines for such Lots as shown on any Plat or any part thereof, provided, however, further that 4 where any exterior wall of a Dwelling Unit is not a Party Wall, but extends outside the boundary lines (Lot lines) of any Lot (as shown on any such Plat or part thereof) upon which such Dwelling Unit is primarily located, the boundary lines of such Lot shall be deemed to include all of the ground area occupied by such Dwelling Unit. It is the intent hereof that, in any and all events in which a boundary line as shown on any Plat or part thereof does not coincide with the actual location of the respective wall of the Dwelling Unit because of inexactness of construction, settling after construction, or for any other reason, this Supplemental Declaration and any Plat or any part thereof shall be interpreted and construed so that all ground area underlying beneath a Dwelling Unit shall be and constitute part of the Lot upon which such Dwelling Unit is primarily located to the end that all of such ground area shall be subject to fee simple ownership by the Owner of such Dwelling Unit; to the extent necessary to accomplish and implement such intention, interpretation and construction, the boundary lines of the Lots shall be determined in accordance with the foregoing definitional provisions and boundary lines as so determined shall supersede the boundary lines for Lots shown on any Plat or part thereof. Section 1.22 "Maintenance Costs" means all of the costs necessary to keep the facilities to which the term applies operational and in good condition, including but not limited to the cost of all upkeep, maintenance, repair, replacement, of all or any part of any such facility, payment of all insurance with respect thereto, all taxes imposed on the facility and on the underlying land, leasehold, easement or right-of-way, and any other expense related to continuous maintenance, operation or improvement of the facility. Section 1.23 "Mechanicals Maintenance" shall mean the maintenance, repair, and replacement of all mechanical equipment serving a Dwelling Unit, including HVAC (including ducts, pipes, wires, meters and conduits), a,)ndensing units (both interior and exterior), compressors, housings, water heaters, and water softeners. Section 1.24 "Member" shall mean and refer to every person or entity who holds a membership in the Supplemental Association, as more particularly set forth in Article II below. Section 1.25 "Mortgagee" shall mean and refer to any person or entity holding a first mortgage on any Lot who has notified the Supplemental Association of this fact in writing. An "Eligible Mortgagee" shall be a Mortgagee who has given notice to the Supplemental Association of its interest and requested all rights afforded Eligible Mortgagees under Article XII. Section 1.26 "Official Zoning Ordinance" shall mean "Ordinance Number Z-659-16, an Ordinance of the Common Council of the City of Carmel, Indiana Establishing the Ambleside Point Planned Unit Development District, as amended from time to time. Section 1.27 "Owner" shall mean and refer to the record owner, whether one (1) or more persons or entities, of the fee simple title to any Lot, including a contract seller but excluding those holding such interest in a Lot solely by virtue of a contract to purchase a Lot or as security for the performance of an obligation. If more than one (1) person or entity is the record owner of a Lot, the term Owner as used herein shall mean and refer to such owners collectively, so that there shall be only one (1) Owner of each Lot. 5 Section 1.28 "Owner Damage Repairs" shall mean the maintenance, repair, or replacement of any item or element of a Dwelling Unit or Lot that is damaged or destroyed by the gross negligence or willful misconduct of either (i) the Owner or other occupant of the Dwelling Unit or Lot so damaged or destroyed, or (ii) the residents, guests or other invitees of the Owner or other occupant of the Dwelling Unit or Lot so damaged or destroyed. Section 1.29 "Owner Maintenance" shall mean (i) Utility Line Maintenance; (ii) Mechanicals Maintenance; (iii) the maintenance, repair, and replacement of garage door hardware and garage door openers; (iv) the maintenance, repair, and replacement of hardware, glass, seals and screens on all entry doors to a Dwelling Unit, including any work covered by applicable warranties provided to the corresponding Owner; (v) the maintenance, repair, and replacement of hardware, glass, seals and screens on all exterior windows to a Dwelling Unit, including any work covered by applicable warranties provided to the corresponding Owner; (vi) the cleaning of the interior and exterior surfaces of all exterior windows to a Dwelling Unit; (vii) the maintenance, and repair of exterior light fixtures and the replacement of light bulbs in such fixtures; (viii) the maintenance, repair, and replacement of the interior elements of a Dwelling Unit, including, but not limited to, all wall and floor coverings, cabinets, fixtures and lighting; (ix) the maintenance, repair, and replacement of fences and patio screens installed by Supplemental Declarant or 13 u i I der; and (x) the maintenance of the slab floor. Section 1.3"Owner Yard Maintenance" shall mean (i) the maintenance of any Flowerbeds; (ii) the maintenance, repair, and replacement of any personal property, whether or not attached to the Dwelling Unit, including, without limitation, flags, flagpoles, flower boxes, garden hoses, and any outdoor furniture or decorative items; and (iii) the maintenance, repair, and replacement of all improvements or additions made to decks, patios, and surrounding fencing after their initial installation by Supplemental Declarant or Builder as part of the original construction of a particular Dwelling Unit. Section 1.31 "Party Wall" shall mean each wall that is built as a part of the original construction of a Dwelling Unit and placed on the dividing line between Lots. Section 1.32 "Permitted Signs" shall mean (i) customary real estate sale or lease signs which have received the prior written approval of the Architectural Review Board (as defined in Article VII);.and (ii) temporary construction and home signage. Section 1.33 "Person" shall mean an individual, firm, corporation, partnership, Supplemental Association, trust, or other legal entity, or any combination thereof. Section 1.34 "Recorder's Office" shall mean the Office of the Recorder of Hamilton County, Indiana. Section 1.35 "Regular Assessments" shall mean and refer to assessments levied against all Lots to fund Common Expenses. Section 1.36 "Restrictions" shall mean and refer to the agreements, conditions, covenants, restrictions, easements, assessments, charges, liens, and other provisions set forth in this M Supplemental Declaration with respect to the Property, as the same may be amended from time to time. Section 1.37 "Shared Party Wall Maintenance" shall mean (i) any Utility Line Maintenance or Mechanicals Maintenance to the extent that the line or component in the need of maintenance, repair or replacement is located within a Party Wall; and (ii) the maintenance, repair, and replacement of a Party Wall. Section 1.38 "Special Assessments" shall mean and refer to assessments levied in accordance with Section 5.7 of this Supplemental Declaration. Section 1.39 "Structure" shall mean any temporary or permanent improvement or building or portion thereof, including, without limitation, walls, decks, patios, stairs, windows, window boxes, doors, address markers, flag poles, trees, hedges, shrubbery, satellite dishes, antennae, shutters, awnings, hot tubs, pavement, walkways, driveways, garages and/or garage doors, or appurtenances to any of the aforementioned. Section 1.44 "Structure Insurance" shall mean the casualty insurance that the Supplemental Association shall carry on the Dwelling Units, which shall cover risks not otherwise insured by the Dwelling Unit Insurance. Section 1.41 "Supplemental Declarant" shall mean and refer to Hoffinan Developer, LLC, or its successors or assigns. Any assignment of all or any of the rights of Supplemental Declarant shall be included in a deed, assignment or other instrument recorded in the Recorder's Office. Section 1.42 "Supplemental Declaration" shall mean this Supplemental Declaration of Covenants, Conditions and Restrictions for Ambleside Towns, which is to be recorded in the Recorder's Office. Section 1.43 "Utility Line Maintenance" shall mean (i) the maintenance, repair, and replacement of storm water, water, and sanitary sewer lines serving the Dwelling Units to the extent located between (A) the service meter for the corresponding utility service and (B) the interior fixtures within the corresponding Dwelling Unit connected to such utility service, provided such maintenance, repair, or replacement is not otherwise the responsibility of the provider of such utility service; and (ii) the maintenance, repair, and replacement of all water, sanitary sewer, natural gas, electric, television, cable, telephone, HVAC, satellite, and antennae utility lines serving a Dwelling Unit. Section 1.44 "Yard" shall mean the portion of each Lot that is located outside the foundation line of the Dwelling Unit constructed on that Lot. When used herein, "Yards" shall refer to every Yard on every Lot in the Property unless the context requires otherwise. Notwithstanding anything in the foregoing definition to the contrary, no area on a particular Lot shall be considered to be a Yard under this Supplemental Declaration until a certificate of occupancy has been issued for the Dwelling Unit on that Lot. Section 1.45 "Yard Maintenance" or "Supplemental Association Yard Maintenance" shall 7 mean (i) mowing, trimming, re -sowing, re -sodding, and fertilizing Yards; (ii) the raking and removal of leaves located on Yards; (iii) annual mulching of landscaping beds installed by Supplemental Declarant or Builder on Yards (but not Flowerbeds); (iv) trimming of shrubbery planted by Supplemental Declarant or Builder along the foundations of the Dwelling Units; (v) the fertilization of trees and shrubs installed by Supplemental Declarant or Builder; and (vi) the removal and replacement of dead trees, shrubs, and other decorative plants installed by Supplemental Declarant or Builder. Notwithstanding anything in the foregoing definition to the contrary, Supplemental Association Yard Maintenance shall not include any Owner Yard Maintenance. Except for the mulching of landscaping beds installed by Supplemental Declarant or Builder on Yards, which shall occur annually, the Board of Directors shall determine the frequency with which Supplemental Association Yard Maintenance shall be performed by the Supplemental Association, which may be changed by the Board of Directors from time to time. The costs of performing Supplemental Association Yard Maintenance shall be included within Common Expenses and recovered by the Supplemental Association through both Regular Assessments and Special Assessments as more particularly described in Article V of the Supplemental Declaration. ARTICLE II ADDITIONS TO AND WITHDRAWALS FROM THE PROPERTY Section 2.1 Additions. As of the date of the execution of this Supplemental Declaration, the Property consists solely of the Real Estate, Supplemental Declarant shall have the right, and hereby reserves on to itself the unilateral right, at any time, and from time to time, at any time prior to the end of the Development Period, to add to the Property and subject all or any part of the Additional Real Estate to this Supplemental Declaration; provided, however, that the addition of any parts of the Additional Real Estate not owned by the Declarant at the time the same are subjected to this Supplemental Declaration shall require the written consent of such Owner. Any portion of the Additional Real Estate shall be added to the Property, and therefore and thereby becomes a part of the Property and subject in all respects to this Supplemental Declaration and all rights, obligations, and privileges herein, when Supplemental Declarant places of record in Hamilton County, Indiana, a written instrument or written statement so declaring the same to be part of the Property, which written instrument or written statement may be contained in a Plat, or an amendment or supplement to this Supplemental Declaration. Any such written instrument or written instrument may contain modifications hereto and additional terms, conditions, restrictions, maintenance obligations, and assessments as may be necessary to reflect the different character, if any, of the Additional Real Estate. Upon recording of any such instrument on or before the end of the Development Period, the real estate described therein shall, for all purposes, thereafter be deemed a part of the Property and the Owners of any Lots within such real estate shall be deemed for all purposes, to have and be subject to all of the rights, duties, privileges, and obligations of Owners of Lots within the Property. No single exercise of Supplemental Declarant's right and option to add and expand the Property as to any part or parts of the Additional Real Estate shall preclude Supplemental Declarant from thereafter from time to time further expanding and adding to the Property to include other portions of the Additional Real Estate, and such right and option of expansion may be 8 exercised by Supplemental Declarant from time to time as to all or any portions of the Additional Real Estate so long as such expansion is accomplished on or before the end of the Development Period. Such expansion of the Property shall not require the consent of any Person other than the Owner(s) of the property to be added, if not the Supplemental Declarant and is entirely at the sole discretion of the Supplemental Declarant, and nothing contained in this Supplemental Declaration or otherwise shall require Supplemental Declarant to expand the Property beyond the Real Estate, or to any portions of the Additional Real Estate, which Supplemental Declarant may voluntarily in its sole discretion from time to time subject to this Supplemental Declaration. Section 2.2 Withdrawals. So long as it has a right to annex or subject to this Supplemental Declaration the Additional Real Estate pursuant to Section 3.1, Supplemental Declarant reserves the unilateral right in its sole discretion to amend this Supplemental Declaration for the purpose of removing any portion of the Property, which has not yet been improved with Residences, from the coverage of this Supplemental Declaration. Such amendment shall not require the consent of any Person other than the Owner(s) of the property to be withdrawn, if not the Supplemental Declarant. ARTICLE III MEMBERSHIP Every Owner of a Lot which is subject to this Supplemental Declaration shall be a Member of the Supplemental Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Supplemental Association. Ownership of such Lot shall be the sole qualification for membership. No Owner shall have more than one (1) membership in the Supplemental Association for each Lot it owns. ARTICLE IV VOTING RIGHTS Section 4.1 Classes. The Supplemental Association shall have two (2) classes of voting membership as follows: Class A: Class A Members shall be all Members with the exception of the Class B Member. A Class A Member shall be entitled to one (1) vote for each Lot in which it holds the interest required for membership pursuant to Article II herein with respect to each matter submitted to a vote of Members upon which the Class A Members are entitled to vote. Class B: The Class B Member shall be the Supplemental Declarant. At all times prior to expiration of the Class B Membership, as provided below in this Section, the Class B Member shall have the same number of votes at any meeting in which votes are to be taken as is held collectively by all Class A members, plus one hundred (100) additional votes. Supplemental Declarant's Class B membership interest shall be converted to and shall become a Class A 6 membership interest with one (1) vote for each Lot in which it holds an interest, and the Development Period shall terminate, upon the happening of any of the following events, whichever occurs first (the "Authority Transfer Date"): (a) When the Class B member no longer owns any portion of the Property; or (b) December 31, 2050; or (c) When, in its sole discretion, the Supplemental Declarant expressly and specifically terminates and waives in writing its right to Class B Membership. The Supplemental Declarant reserves the right to assign some of its rights and obligations under this Supplemental Declaration without terminating the Development Period and without terminating or waiving its right to Class B Membership. Section 4.2 Multiple Ownership Interests. When more than one (1) Person constitutes the Owner of a particular Lot, all of such Persons shall be Members of the Supplemental Association, but all of such Persons, collectively, shall have only one (1) vote for such Lot. The vote for such Lot shall be exercised as such Persons constituting the Owner of the Lot determine among themselves, and may be exercised by any one (1) of the Persons holding such ownership interest, unless any objection or protest by any other holder of such ownership interest is made prior to the completion of a vote, in which case the vote cast for such Lot shall not be counted, but the Member whose vote is in dispute shall be counted as present at the meeting for quorum purposes if the protest is lodged at such meeting. In no event shall more than one (1) vote be cast with respect to any Lot. ARTICLE V DECLARATION OF RESTRICTIONS Section 5.1 Declaration. Supplemental Declarant hereby expressly declares that the Property and any additions thereto pursuant to this Supplemental Declaration, shall be held, transferred and occupied subject to these Restrictions. The Owners of each Lot are subject to these Restrictions, and all other Persons, whether (i) by acceptance of a deed from Supplemental Declarant, Builder or subsequent Owner conveying title thereto, or the execution of a contract for the purchase thereof, whether from Supplemental Declarant, Builder or a subsequent Owner of such Lot, or (ii) by the act of occupancy of any Lot, shall conclusively be deemed to have accepted such deed, executed such contract and undertaken such occupancy subject to each Restriction and agreement herein contained. By acceptance of such deed, or execution of such contract, or undertaking such occupancy, each Owner and each other Person for itself, its heirs, personal representatives, successors and assigns, acknowledges the rights and powers of Supplemental Declarant, the Architectural Review Board and of the Supplemental Association with respect to these Restrictions, and also, covenants, agrees and consents to and with Supplemental Declarant, the Architectural Review Board, the Supplemental Association, and the Owners and subsequent 10 Owners of each of the Lots affected by these Restrictions, to keep, observe, comply with and perform such Restrictions and agreements. ARTICLE VI ASSESSMENTS Section 6.1 Creation of the Lien and Personal Obligation for Assessments. Each Owner of a Lot covenants and agrees that, by acceptance of a deed therefor, whether or not it shall be so expressed in any such deed or other instrument of conveyance, to pay to the Supplemental Association: (a) Regular Assessments, (b) Special Assessments, (c) Working Capital Assessments, (d) Resale Assessments, and any other amounts as may be provided for hereunder to be due from any Owner in connection with his ownership of a Lot. Such assessments are to be established and collected as hereinafter provided. The Supplemental Association's Regular Assessments, Special Assessments, Working Capital Assessments and Resale Assessments, together with interest thereon, late fees (as contemplated in Section 5.6 c below) and costs of collection thereof, as hereinafter provided, shall be assessed against each applicable Owner's Lot and shall be a continuing lien upon the Lot against which each assessment is made. Each such assessment, together with interest, late fees, collection costs, and reasonable attorneys' fees, shall also be the personal obligation of the person who was the Owner of such Lot at the time the assessment became first due. The Regular Assessments, Special Assessments, Working Capital Assessments and Resale Assessments, when assessed upon resolution of the Board of Directors for each year, shall become a lien on each Lot in the amount of the entire Regular Assessment, Special Assessment, Working Capital Assessments or Resale Assessment, eventhough the Regular Assessments and Special Assessments shall be payable in equal installments collected on a monthly or quarterly basis as determined by the Board of Directors. Section 6.Z Purpose of Assessment. The assessments levied by the Supplemental Association shall be used to promote the recreation, health, safety and welfare of the residents and Owners of the Property, and for the improvement and maintenance of the Dwelling Units or other property which the Supplemental Association has the obligation to maintain as the Board of Directors may determine to be appropriate. In addition, the assessments levied by the Supplemental Association shall be used to (i) pay the premiums and other costs related to the Structure Insurance (but not any deductibles), and (ii) perform the Exterior Maintenance. Section 6.3 Annual Accounting. Annually, after the close of each fiscal year of the Supplemental Association and prior to the date of the annual meeting of the Supplemental Association next following the end of such fiscal year, the Board of Directors shall cause to be prepared and furnished to each Owner a financial statement, which statement shall show all receipts and expenses received, incurred and paid during the preceding fiscal year. Any costs charged to the Supplemental Association for the preparation of said statements shall be a Common Expense. Section 6.4 Proposed Annual Budget. Subsequent to the Authority Transfer Date, and on or before the date of the annual Budget Meeting, the Board of Directors shall cause to be prepared a proposed annual budget for the next ensuing fiscal year that: (i) estimates the total 11 amount of the Common Expenses for such next ensuing fiscal year; (ii) estimates the total amount of the revenue the Supplemental Association expects to receive during such next ensuing fiscal year, including Regular Assessments; and (iii) estimates the amount of surplus or deficit at the end of the then current fiscal year. Following the completion of such a budget for a particular fiscal year and prior to its corresponding Budget Meeting, the Supplemental Association shall either (i) furnish a copy of such proposed budget to each Owner, or (ii) notify each Owner that the proposed budget is available upon request at no additional charge to that Owner. At the same time, the Supplemental Association shall provide each Owner with a written notice of the amount of any increase or decrease in the Regular Assessment payable by the Owners that would occur if the proposed annual budget is approved. The annual budget shall be submitted to the Owners at the Budget Meeting for adoption and, if so adopted, shall be the basis for the Regular Assessments for the next ensuing fiscal year. At such Budget Meeting, the budget may be approved in whole or in part or may be amended in whole or in part by a majority vote of the Owners. For purposes of this Budget Meeting, a member is considered to be in attendance at the meeting if the member attends: (1) in person; (2) by proxy; or (3) by any other means allowed under Indiana law or under the Supplemental Declaration or the By -Laws. However, in no event shall such meeting of the Owners be adjourned until an annual budget is approved and adopted at such meeting, whether it be the proposed annual budget or the proposed annual budget as amended. The annual budget, the Regular Assessments and all sums assessed by the Supplemental Association shall be established by using generally accepted accounting principles applied on a consistent basis. The failure or delay of the Board of Directors to prepare a proposed annual budget and to furnish a copy thereof to the Owners shall not constitute a waiver or release in any manner of the obligations of the Owners to pay the Common Expenses as herein provided, whenever determined. In the event there is no annual budget approved by the Owners as herein provided for the current fiscal year, whether before or after the Budget Meeting, the Owners shall continue to pay Regular Assessments based upon the last approved budget or, at the option of the Board of Directors, Regular Assessments based upon one hundred and ten percent (110%) of such last approved budget. Section 6.5 Establislunent of Regular Asscssinent. The Supplemental Association must levy in each of its fiscal years a Regular Assessment against each Lot. The amount of such Regular Assessment shall be established by the Board of Directors, and written notice of the same shall be sent to every Owner at least thirty (30) days in advance of the commencement of each Regular Assessment period. Regular Assessments against each Lot shall be paid in advance, payable in monthly or quarterly installments as directed by the Board. The initial Regular Assessment levied by the Supplemental Association for each Lot shall be adjusted according to the number of months remaining in the period for which such initial assessment was levied. All payments of Regular Assessments and Special Assessments shall be non-refundable, and all collections and funds held by the Supplemental Association on account thereof shall be appurtenant to and be applied for the benefit of the respective Lot. In no event shall any Owner be due any rebate or credit from the Supplemental Association upon resale or other transfer or conveyance for prepaid Regular Assessments or Special Assessments. Section 6,6 Re lar Assessments. Regular Assessments shall be against each Lot in accordance with the following terms and provisions: 12 (a) Prior to January 1 of the year immediately following conveyance of the first Lot to an Owner other than Builder, the Regular Assessment shall not exceed Three Hundred Twenty -Five Dollars ($325.00) per month. (b) After the initial year described in Section 5.6(a), above, the amount of the Regular Assessment shall be determined as provided in Section 5.5, above. (c) The Regular Assessment against each Lot shall be paid in monthly or quarterly installments as directed by the Board of Directors, each of which is paid in full in advance by the due dates specified by the Board of Directors, the first of which due date shall not be earlier than fifteen (15) days after the written notice of such Regular Assessment is given to the Owners. Monthly or quarterly installments of Regular Assessments shall be due and payable automatically on their respective due dates without any notice from the Board of Directors or the Supplemental Association, and neither the Board of Directors nor the Supplemental Association shall be responsible for providing any notice or statements to Owners for the same. If an Owner fails to pay any monthly or quarterly installment of any such Regular Assessment on or before the due date established by the Board of Directors, a late fee as established by the Board of Director, which in no event will be less than $25.00, will be added to the amount due, and any such installment, together with such late fee, will be and remain, immediately due and payable. (d) Payment of the Regular Assessment shall be made to the Board of Directors or a managing agent, as directed by the Board of Directors. (e) The Regular Assessment for each fiscal year of the Supplemental Association shall become a lien on each separate Lot as of the first day of each fiscal year of the Supplemental Association, even though the final determination of the amount of such Regular Assessment may not have been made by that date. Section 6.7 Special Assessments. In addition to the Regular Assessment authorized above, the Supplemental Association may levy, in any assessment year, a Special Assessment applicable to that year for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of capital improvements, including the fixtures and personal property related thereto, or for any other specified purpose. Without limiting the generality of the foregoing provisions, Special Assessments may be made by the Board of Directors from time to time to pay for capital expenditures and to pay for the cost of any repair or reconstruction of damage caused by fire or other casualty or disaster to the extent insurance proceeds are insufficient therefor under the circumstances described in this Supplemental Declaration. Except in the case of damage or destruction caused by an Owner or any of his guests, tenants, licensees, agents, members of his family, or any other Person having or gaining access to the Owner's Lot as contemplated by Section 4.3(f), any such Special Assessment shall be levied against all of the Lots which benefit from the construction, reconstruction, repair or replacement of capital improvements giving rise to the Special Assessment, pro rata according to each Lot's benefit, as reasonably determined by the Board of Directors, which determination shall be final. In the case of damage 13 or destruction caused by an Owner or any of his guests, tenants, licensees, agents, members of his family, or any other Person having or gaining access to the Owner's Lot as contemplated by Section 4.3 , the Special Assessment may be levied solely against that Owner. Notwithstanding the fact that in some instances, this Supplemental Declaration may provide that certain items of routine and ordinary repair and maintenance should be performed by the Supplemental Association, the Supplemental Association shall nevertheless retain the right to assess the costs thereof to any Owner or group of Owners as a Special Assessment. To be effective, any such Special Assessment shall have the assent of at least two-thirds (2/3) of the votes of the Board of Directors at a meeting of the Board of Directors duly called for this purpose. Notwithstanding the above, the Board may not enter into any contract that would result in a Special Assessment or the increase in the existing Regular Assessment payable by the affected Owners in the amount of more than Five Hundred Dollars ($500.00) per year for each affected Owner unless: (1) the Board holds at least two (2) Supplemental Association meetings of the Owners concerning the contract; and (2) the contract is approved by the affirmative vote of at least two-thirds (2/3) of the affected Owners. The Board shall give notice of the first such Supplemental Association meeting to each member of the Supplemental Association at least ten (10) calendar days before the date the meeting occurs. The provisions in this Section do not apply to a contract entered into by a Board that would resolve, settle, or otherwise satisfy an act of enforcement against the Supplemental Association for violating a state or local law. Section 6.8 Quorum for any Action Authorized Under Sections 5.6 or 5.7. Subsequent to the Authority Transfer Date, and at the first calling of a meeting under Section 5.6 or Section 5.7 of this Article, the presence at the meeting of Members or proxies entitled to cast sixty percent (60%) of all the votes with respect to each class of Members shall constitute a quorum. If the required quorum does not exist at any such meeting, another meeting may be called subject to the notice requirements set forth in Section 5A and Section 5.7 and subject further to applicable law, and the required quorum at any such subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. Section 6.9 Workin Ca ital Assessment. In addition to the Regular and Special Assessments authorized above, the Supplemental Association shall establish and maintain a working capital fund. At the closing of the initial sale or other transfer of a Lot after the Dwelling Unit is constructed thereon, to an Owner other than Supplemental Declarant or Builder, the purchaser of such Lot shall pay to the Supplemental Association a working capital assessment in an amount equal to one-fourth (1 Ath) of the then current annual Regular Assessment for said Lot (a "Working Capital Assessment"), which payment shall be non-refundable and shall not be considered as an advance payment of an assessment or other charge owed to the Supplemental Association with respect to such Lot. The Working Capital Assessment shall be used as determined by Supplemental Declarant in its sole and reasonable discretion, if prier to the Authority Transfer Date, or the Supplemental Association, after the Authority Transfer Date. Section 6.10 Resale Assessment. In addition to the Regular, Special and Working Capital Assessments authorized above, upon the sale of a Lot, including the Dwelling Unit thereon, by an Owner other than Supplemental Declarant or Builder, the transferor / seller shall pay to the 14 Supplemental Association a resale assessment in the amount equal to one-half of one percent (0.5%) times the gross sales price of the Lot, including the Dwelling Unit thereon (the "Resale Assessment"), which payment shall be non-refundable and shall not be considered as an advance payment of an assessment or other charge owed to the Supplemental Association with respect to such Lot. The Resale Assessment shall be deposited into the Replacement Reserve Fund, as hereinafter defined. Section 6.11 Rate of Assessment. The Regular Assessment shall be fixed at a uniform rate for all Lots, except for Lots owned by either Supplemental Declarant or Builder. Except in the case of damage or destruction caused by an Owner as contemplated by Section 4.3(fl, and except for Lots owned by either Supplemental Declarant or Builder, the Special Assessments shall be fixed at a uniform rate for all Lots which benefit from the construction, reconstruction, repair or replacement of capital improvements giving rise to the Special Assessment, pro rats according to each Lot's benefit, as reasonably determined by the Board of Directors, which determination shall be final. Notwithstanding the foregoing or anything else contained herein, no Regular Assessments or Special Assessments or other charges shall be owed or payable by Supplemental Declarant or Builder with respect to any Lot or other portion of the Property owned by Supplemental Declarant or Builder while the same is owned by Supplemental Declarant or Builder, nor shall any such assessments or charges become a lien on any such Lot or other portion of the Property owned by Supplemental Declarant or Builder. Section 6.12 Notice of Assessment and Certificate. Written notice of the Regular Assessments and any Special Assessments shall be sent to every Member. The due dates for payment of the Regular Assessments and any Special Assessments shall be established by the Board of Directors. The Supplemental Association shall, upon written demand by a Member at any time, furnish a certificate in writing signed by an officer or authorized agent of the Supplemental Association setting forth whether the assessments on their respective Lot have been. paid and the amounts of any outstanding assessments. A reasonable charge may be made by the Board of Directors for the issuance of these certificates, which charge shall be paid to the Board of Directors in advance by the requesting Member. Such certificates shall be conclusive evidence of payment of any assessment therein stated to have been paid. Section 6.13 Remedies of the SuppIemental Association in the Event of Default. Each Owner shall be personally liable for the payment of all Regular Assessments and Special Assessments against his Lot. Where the Owner constitutes or consists of more than one Person, the liability of such Persons shall be joint and several. if any assessment pursuant to this Supplemental Declaration is not paid within thirty (30) days after its initial due date, the assessment shall bear interest from the date of delinquency at the rate charged by the Internal Revenue Service on delinquent taxes. In addition, in its discretion, the Board of Directors may: (a) impose the late fee set forth in Section 5.6 c , above; (b) file a lien against the Lot of the defaulting Owner pursuant to Article 32.28.14 of the Indiana Code, as the same may be modified from time to time; 15 (c) bring an action at law against the Owner personally obligated to pay the same and/or foreclose the lien against the Lot, and interest, costs and reasonable attorneys' fees of any such action shall be added to the amount of such assessment. A suit to recover a money judgment for nonpayment of any assessment levied pursuant to this Supplemental Declaration, or any installment thereof, may be maintained without perfecting, foreclosing or waiving the lien provided for herein to secure the same; (d) suspend a Member's right to hold an office within the Supplemental Association, and right to use nonessential services offered by the Supplemental Association, provided that access and the provision of utilities to the Lot through the Common Area shall not be precluded. A Member whose rights have been suspended in this manner, shall have no right to any refund or suspension of his obligations to pay such assessments or any other assessments becoming due for the duration of such suspension or otherwise; (e) accelerate the due date of the unpaid assessment so that the entire balance shall become immediately due, payable and collectible; and (f) suspend a Member's voting rights if the Owner is more than six (6) months delinquent in the payment of any assessment. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the common areas or facilities in Ambleside, abandonment of its Lot, or the failure of the Supplemental Association or the Board of Directors to perform their respective duties. In any action to foreclose the lien against a Lot pursuant to Section 5.120c� above, the Owner and any occupant of the Lot and Dwelling Unit which are the subject of such action shall be jointly and severally liable for the payment to the Supplemental Association of reasonable rental for such Lot and Dwelling Unit, and the Board of Directors shall be entitled to the appointment of a receiver for the purpose of preserving the Lot and Dwelling Unit and to collect the rentals and other profits therefrom for the benefit of the Supplemental Association to be applied to the unpaid Regular Assessments or Special Assessments. The Board of Directors may, at its option, bring a suit to recover a money judgment for any unpaid Regular Assessment or Special Assessment without foreclosing (and without thereby being deemed to have waived) the lien securing the same. In any action to recover any Regular Assessment or Special Assessment, or any other debts, dues or charges owed the Supplemental Association, whether by foreclosure or otherwise, the Board of Directors, for and on behalf of the Supplemental Association, shall be entitled to recover from the Owner of the respective Lot and Dwelling Unit all of the costs and expenses incurred as a result of such action (including, but not limited to, reasonable attorneys' fees) and interest upon all amounts due at the rate of twelve percent (12%) per annum, which shall accrue from the date such assessments or other amounts become first due, until the same are paid in full. Section 6.14 Subordination of the Lien to Mortgages. The lien for the Assessments provided for herein shall be subordinate to the lien of any properly recorded first mortgage encumbering a Lot. Notwithstanding anything contained in this Sectioii 5.I4 or elsewhere in this 16 Supplemental Declaration, any sale or transfer of a Lot to a Mortgagee pursuant to a foreclosure of its mortgage or a conveyance in lieu thereof, or a conveyance to any person at a public sale in the manner provided by law with respect to mortgage foreclosures, shall extinguish the lien of any unpaid Assessments (or periodic installments, if applicable) which became due prior to such sale, transfer or conveyance, but the extinguishment of such lien shall not relieve the prior Owner from personal liability therefor. No such sale, transfer or conveyance shall relieve the Lot, or the purchaser thereof at such foreclosure sale, or the grantee in the event of conveyance in lieu thereof, from liability for any Assessments (or periodic installments of such Assessments, if applicable) thereafter becoming due or from the lien for such Assessments.". Section 6.15 Exem t Property. The following portions of the Property shall be exempt from the Assessments created by this Supplemental Declaration: (a) those portions of the Property that are dedicated to and accepted by a local public authority; and (b) the Common Area. Except as otherwise provided in Section 5.10 and Section 5.17 hereof, no developed Lot devoted to dwelling use shall be exempt from said assessments. Section 6.16 Replacement Reserve Fund. The Supplemental Association shall establish and maintain a reserve fund ("Replacement Reserve Fund") for the maintenance, repair and replacement of the Dwelling Units, as provided in this Supplemental Declaration, by the allocation and payment to such reserve fund of an amount to be designated from time to time by the Board of Directors, which reserve fund shall be sufficient, in the sole opinion of the Board of Directors, to accommodate such future maintenance, repair and replacement and which shall be a component of the Regular Assessment. The Replacement Reserve Fund (i) shall be conclusively deemed to be a Common Expense of the Supplemental Association, (ii) shall be maintained by the Supplemental Association in a separate, interest bearing account or accounts with any banking institution, the accounts of which are insured by any state or by any agency of the United States of America as selected by the Board of Directors, and (iii) may be expended only for the purpose of effecting maintenance and repairs to Dwelling Units as set forth in this Supplemental Declaration. The Supplemental Association may establish such other reserves for such other purposes as the Board of Directors may from time to time consider necessary or appropriate. The proportional interest of any Member in any such reserves shall be considered an appurtenance of the Member's Lot and shall not be separately withdrawn, assigned or transferred or otherwise separated from the Lot to which it appertains and shall be deemed to be transferred with such Lot. Section 6.17 Books and Records. The Supplemental Association shall provide Owners with financial information regarding the operation of the Supplemental Association as and to the extent required under the HOA Act. Section 6.18 Supplemental Declarant and guilder Exemption. Notwithstanding anything in this Supplemental Declaration to the contrary, under no circumstances shall Supplemental Declarant or Builder be required or obligated to pay any Assessments, whether Regular Assessments, Special Assessments, or Working Capital Assessments, or otherwise. 17 ARTICLE VII USE RESTRICTIONS AND ARCHITECTURAL CONTROLS Section 7.1 Relation to Declaration. All Lots are subject to the covenants, conditions and restrictions stated in the Declaration, as may be amended from time to time. In addition, the Owners of all Lots shall comply with the use Restrictions and Architectural Controls stated in this Article VII and elsewhere in this Supplemental Declaration. In the event of a conflict between the terms of the Declaration and the terms of this Supplemental Declaration, the more restrictive terns shall control. Section 7.2 Residential Use. The Property shall be used exclusively for residential purposes except as permitted under Section 7.28 hereof. Supplemental Declarant reserves the right, pursuant to a recorded subdivision or re -subdivision plat, to alter, amend, and change any Lot line or subdivision plan or plat. No structure shall be erected, altered, placed or permitted to remain on any Lot other than one (1) Dwelling Unit and appurtenant structures, approved by the Supplemental Association and appropriate Local Governing Authorities, for use solely by the occupant(s) of the Dwelling Unit. Section 7.3 Architectural Review Board ARproval. No Structure shall be erected, placed, painted, altered or externally modified or improved on any Lot unless and until (i) the plans and specifications, including design, elevation, material, shape, height, color and texture, and a site plan showing the location of all improvements with grading modifications, shall have been filed with and approved in writing in all respects by the Architectural Review Board (as defined in Article VIII below) and, if required, by appropriate Local Governing Authorities; and (ii) all construction permits have been obtained, if applicable or required. In addition, no item of personal property, without regard to whether such item is fixed or attached or moveable, shall be erected or placed forward of the front foundation line of any Dwelling Unit unless approved in writing by the Architectural Review Board (as defined in Article VIII . Further, notwithstanding any approval given herein, the Architectural Review Board may revolve its approval as to any item of personal property which is not fixed or attached at any time and for any or no reason, and an. Owner shall immediately remove any item of personal property which is not fixed or attached, which is placed forward of the front foundation line of any Dwelling Unit upon request of the Architectural Review Board, without regard to whether the Architectural Review Board may have previously given its approval for such item of personal property. Section 7.36 of this Supplemental Declaration sets forth certain restrictions regarding alterations to Dwelling Units, and nothing in this Section 7.3 or any other provision of this Supplemental Declaration may be construed so as to give the Architectural Review Board the power to grant variances or otherwise waive the restrictions set forth in Section 7.36, below. Section 7.4 Lain No clotheslines may be erected on any Lot, and no clothing, sheets, blankets, rugs, laundry or wash shall be hung out, exposed, aired or dried on any portion of the Property within public view. Section 7.5 Si t Lines. No fence, wall, tree, hedge or shrub shall be maintained in such a manner as to obstruct sight lines for vehicular traffic. 18 Section 7.6 Lot Maintenance. Each Owner shall, at all times, maintain its Lot and Dwelling Unit and all appurtenances thereto free of debris or rubbish and in a state of neat appearance from all exterior vantage points. Section 7.7 Additions to Lan dsca a Im rovements. No tree, shrub, or other vegetation or landscape improvement originally installed by Supplemental Declarant or Builder shall be removed or altered unless such item is dead or decayed and dangerous to human health, safety, or welfare, and the removal has been approved in writing in advance by the Architectural Review Board, or removal is ordered by a Local Governing Authority or by the Architectural Review Board to maintain proper sightlines. No approval for removal of any trees or shrubs shall be granted by the Architectural Review Board unless appropriate provisions are made for replacing the removed trees or shrubs. Each Owner is permitted to add to the landscape of his Lot certain landscaping features within approved flowerbeds; however, prior to adding any such landscape, the Owner of such Lot must submit a written landscape plan to the Architectural Review Board for its review and obtain the written approval of such Architectural Review Board. Section 7.8 Nuisance. No noxious or offensive activity shall be carried on or permitted to be carried on upon the Property, nor shall anything be done or placed thereon which is or may become an annoyance or nuisance to Ambleside. Nothing shall be done or kept or permitted to be done or kept by an Owner in any Dwelling Unit, or on any Lot, or on any of the Common Areas, which will cause an increase in the rate of insurance paid by the Supplemental Association or any other Owner. No Owner shall permit anything to be done or kept in his Dwelling Unit or on his Lot which will result in a cancellation of insurance on any part of the Common Area or any other Owner, or which would be a violation of any law or ordinance or the requirements of any insurance underwriting or rating bureau. No Dwelling Unit or Lot shall be used in any unlawful manner or in any manner which might cause injury to the reputation of Ambleside or which might be a nuisance, annoyance, or inconvenience, or which might cause damage, to other Owners and occupants of Dwelling Units or neighboring property, including, without limiting the generality of the foregoing, noise by the use of any musical instrument, radio, television, loud speakers, electrical equipment, amplifiers or other equipment or machinery. No exterior lighting on a Lot shall be directed outside the boundaries of the Lot. No outside toilets shall be permitted on any Lot (except during a period of construction and then only upon obtaining prior written consent of the Architectural Review Board), and no sanitary waste or other wastes shall be permitted to be exposed. Section 7.9 SiMs. Permitted signs shall include only those professionally constructed signs which advertise a home on a Lot for sale by a licensed and registered real estate broker/company, and which are non -illuminated and less than or equal to six (6) square feet in size ("Permitted Signs"). With the exception of Permitted Signs, all signs including, but not limited to those advertising a garage sale or a Lot "For Lease", must be approved by the Architectural Review Board before being placed upon any Lot or Common Area, or displayed from a Dwelling Unit. No more than one sign (including a Permitted Sign) may be displayed on a Lot or from a Dwelling Unit at any one time. In addition, no more than one sign (including a Permitted Sign) may be displayed in Ambleside by an entity owning multiple Lots. All Permitted Signs advertising a Lot for sale shall be removed within three (3) business days from the date of the conveyance of the Lot 19 or the execution of the lease agreement, as applicable. Signs advertising a Lot for "Rent to Own", or something similar, are expressly prohibited and may not be placed on any Lot or displayed from a Dwelling Unit constructed thereon. The Supplemental Declarant and Builder are expressly exempt from the requirements of this Section 7.9 and may post any signs in Common Areas and Lots owned by either Supplemental Declarant or Builder, as it deems necessary or appropriate. Section 7.10 Animals. No domesticated or wild animal shall be kept or maintained on any Lot, except that no more than three (3) common household pets such as dogs and cats may be kept or maintained, provided that they are not kept, bred or maintained for commercial purposes and do not create a nuisance or annoyance to surrounding Lots or Ambleside and are kept in compliance with applicable laws and ordinances of the Local Governing Authority. Any vicious animals and dogs that bark excessively shall constitute a nuisance for purposes of these Restrictions. Pets will not be permitted outside of a Dwelling Unit unless on a leash or contained within an underground electric fence, as provided in Section 7.1 S, and any Owner walking a pet within Ambleside or on any Common Area will immediately clean up any solid animal waste and properly dispose of the same. Failure to remove any solid animal waste shall subject the Owner to a fine the minimum of which shall be $50.00 per occurrence as determined by the Board of Directors but in no event less than the cost of removal and any remediation. Law enforcement and animal control personnel shall have the right to enter the Property to enforce local animal control ordinances. No dog houses shall be permitted on any Lot. Household pets permitted by this Section 7.10 may not be placed in a dog run or other comparable facility on a Lot and no dog may be permitted outside without supervision by an adult for any consecutive period of time in excess of an hour. Section 7.11 Trash Storm. Trash shall be collected and stored in sealed trash receptacles only and not solely in plastic garbage bags. Trash and garbage receptacles shall not be permitted to remain in public view and shall remain inside of each Owner's garage except on days of trash collection, and except for those receptacles designed for trash accumulation located in the Common Area. No accumulation or storage of litter, new or used building materials, or trash of any kind shall be permitted on the exterior of any Dwelling Unit. No rubbish, garbage or other waste shall be allowed to accumulate on any Lot or Common Area. No homeowner or occupant of a Lot shall burn or bury any garbage or refuse on any Lot or Common Area. Section 7.12 Antennae Systems. To the extent not inconsistent with federal and state law, exterior television and other antennae, including satellite dishes, are prohibited, unless approved in writing by the Architectural Review Board, and any submission for such approval shall otherwise comply with the requirements of the procedures for approval by the Architectural Review Board. The Architectural Review Board shall adopt rules for the installation of such antennae and/or satellite systems, which rules shall require that antennae and satellite dishes be placed as inconspicuously as possible and only when fully screened from public view on the rear and above the eave line of any Dwelling Unit. To the extent not inconsistent with federal law, satellite dishes will not exceed eighteen (18) inches in diameter. It is the intent of this provision that the Architectural Review Board shall be able to strictly regulate exterior antennae and satellite dishes to the fullest extent of the law and should any regulations adopted herein or by the Architectural Review Board conflict with federal law, such riles as do not conflict with federal law shall remain in full force and effect. P Section 7.13 Painting and Extcrior Design. No Owner shall cause or permit any alterations or changes of the exterior design and/or color scheme of any Dwelling Unit, Structure or building including, but not limited to, the exterior paint color scheme and roof shingle color scheme and materials. No person shall paint the exterior of any building, or portion thereof, except contractors and agents employed by Supplemental Declarant or the Supplemental Association. Section 7.14 Finished Exteriors. No Structure shall be permitted to stand with its exterior in an unfinished condition for longer than six (6) months after the commencement of construction. In the event of fire, windstorm or other damage, the exterior of a Structure shall not be permitted to remain in a damaged condition for longer than three (3) months, unless expressly excepted by the Board of Directors in writing. If the Board of Directors determines that any Structure or Dwelling Unit is not in compliance with the provisions of this Section 6.13, the Supplemental Association shall send written notice to the Owner of that Structure or Dwelling Unit identifying, with reasonable specificity, the items in need of repair or maintenance (a "Repair Notice"). If an Owner fails to comply with the provisions of this Section 6.13 after its receipt of such a Repair Notice, the Supplemental Association shall be entitled to enforce the provisions of this Section 6.13 in the manner contemplated under Sectimi.l I . l t , below, and in any other manner permitted hereunder or by applicable law. Section 7.15 Fences. No fence or similar enclosure shall be erected or built on the Property except for (a) any fencing constructed by Supplemental Declarant or Builder, and (b) underground electric fences which are designed to restrict the movement of pets, which are expressly approved. Section 7.16 Vehicles. No inoperable, junk, unregistered or unlicensed vehicle shall be kept on the Property. No portion of the Property, including any garage, shall be used for the repair of a vehicle. Section 7.17 Commercial Vehicles, Except upon the prior written approval of the Architectural Review Board, no commercial or industrial vehicle, including, but not limited to, moving vans, trucks, tractors, trailers, vans, wreckers, tow trucks, hearses and buses, shall be parked overnight or regularly or habitually parked on the Property, nor shall any such vehicle be located on the Property for longer than twenty-four (24) hours except to the extent in use for ongoing work to a Dwelling Unit. Section 7.18 Recreational Vehicles. No recreational vehicles or equipment, including, but not limited to, boats, boating equipment, jet -skis, wave runners, travel trailers, fuel tanks, camping vehicles or camping equipment, shall be parked on the Property without the prior, written approval of the Architectural Review Board, as to location, size, screening and other criteria deemed to be relevant by the Architectural Review Board. The Supplemental Association shall not be required to provide a storage area for these vehicles. Section 7.19 Towing. The Board of Directors shall have the right, but not the obligation, to tow any vehicle parked or kept in violation of the covenants contained within this Article Vll, upon twelve (12) hours' written, telephonic or verbal notice and at the vehicle owner's sole expense, subject to compliance with all applicable laws. 21 Section 7.20 Gara a Usage. In addition to the restriction set forth in Section 7.16, above, any conversion of any garage that will preclude the parking of vehicles within that garage is prohibited. Owners shall keep and maintain their garages at all times in a manner that will permit the usage of such garage for parking of passenger automobiles, vans and/or trucks. Section 7.21 Initial Construction and Marketin . Supplemental Declarant and Builder may, during its construction and/or sales period, erect, maintain and operate real estate sales and construction offices, model homes, displays, sips and special lighting on any part of the Property and on or in any building or Structure now or hereafter erected thereon and shall not be bound by the provisions of this Article to the extent application thereof would delay, hinder or increase the cost of construction and/or marketing of Dwelling Units for sale in Ambleside by Supplemental Declarant. Section 7.22 Gard Garage doors shall remain closed except when entering and exiting or otherwise accessing the garage. Section 7.23 Storage Facilities. No permanent, temporary or portable storage facilities shall be permitted on any Lot, except for portable storage facilities that are located wholly within the Owner's garage area and are removed within twenty-four (24) hours. No portable storage facility is permitted in any driveway, Common Area, or public right-of-way. Section 7.24 Awning Except with respect to Lots upon which Supplemental Declarant or Builder maintain a sales office or model home., or as otherwise approved by the Architectural Review Board, no metal, wood, fabric, fiberglass or similar type material awnings (including retractable awnings) or patio covers will be permitted anywhere on the Property. Section 7.25 Pools and Hot Tubs. No pools shall be permitted on any Lot. Hot tubs will only be permitted upon the approval of the Architectural Review Board, and in all instances shall include screening. Section 7.26 Play Equipment. No children's play equipment such as playhouses, sandboxes, swing and slide sets, jungle gyms, and trampolines, shall be permitted on any Lot. Section 7.27 Basketball Goals. No basketball goals, hoops, or backboards shall be permitted on any Lot. Section 7.28 Business Use. No garage sale, moving sale, rummage sale or similar activity and no trade or business may be conducted in or from any Lot, except that an Owner or occupant resident on a Lot may conduct business activities within a Dwelling Unit so long as: (a) the existence or operation of the business activity is not apparent or detectable by sight, sound or smell from outside the Dwelling Unit; (b) no sign or display is erected that would indicate from the exterior that the Dwelling Unit is being utilized in part for any purpose other than that of a residence; (c) no commodity is sold upon the premises; (d) no person is employed other than a member of the immediate family residing in the Dwelling Unit; (e) no manufacture or assembly operations are conducted; (f) the business activity conforms to all zoning requirements OX for the Property; (g) the business activity does not involve persons coming onto the Property who do not reside in the Property or door-to-door solicitation of residents of the Property; and (h) the business activity is consistent with the residential character of the Property and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Property, as may be determined in the sole discretion of the Board of Directors. 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 therefor. Notwithstanding the above, (i) the leasing of a Lot or Dwelling Unit shall not be considered a trade or business within the meaning of this Section 7.28, and (ii) no Dwelling Unit may be used for the operation of the following businesses or trades, regardless of whether licensed or otherwise: (A) a daycare or childcare business, (B) a beauty, hair, or nail salon, (C) a spa of any kind, or (D) a retail business. This Section 7.28 shall not apply to any activity conducted by Supplemental Declarant or Builder with respect to the sale of the Property or the use of any Dwelling Units which Supplemental Declarant or Builder own within the Property for such activities. Section 7.29 LandscapingLandscgping of Common Areas. No Owner shall be allowed to plant trees, landscape or do any gardening in any of the Common Areas, except with prior, express written permission from the Board of Directors. Section 7.30 Supplemental Declarant's and Builder's Use. Notwithstanding anything to the contrary contained herein or in the Articles or Bylaws, Supplemental Declarant and Builder shall have, until the Authority Transfer Date, the right to use and maintain any Lots and Dwelling Units owned by Supplemental Declarant or Builder and other portions of the Property (other than individual Dwelling Units and Lots owned by Persons other than Supplemental Declarant or Builder), as Supplemental Declarant or Builder may deem advisable or necessary in its sole discretion to aid in the sale of Lots and the construction of Dwelling Units, or for the conducting of any business or activity attendant thereto, or for the construction and maintenance of Common Areas, including, but not limited to, model Dwelling Units, storage areas, construction yards, signs, construction offices, sales offices, management offices and business offices. Supplemental Declarant and Builder shall have the right to relocate any or all of the same from time to time as it desires. At no time shall any of such facilities so used or maintained by Supplemental Declarant or Builder be or become part of the Common Areas, unless so designated by Supplemental Declarant, and Supplemental Declarant shall have the right to remove the same from the Property at any time. Section 7.31 Non-Mlicability to Supplemental Association. Notwithstanding anything to the contrary contained herein, the covenants and restrictions set forth in this Article VII shall not apply to or be binding upon the Supplemental Association in its ownership, management, administration, operation, maintenance, repair, replacement and upkeep of the Common Areas to the extent the application thereof could or might hinder, delay or otherwise adversely affect the Supplemental Association in the performance of its duties, obligations and responsibilities as to the Common Areas. MI Section 7.32 Additional Rules and Regglations. The Supplemental Association shall have the authority to adopt such rules and regulations regarding this Article VII as it may from time to time consider necessary or appropriate. Section 7.33 Personal Pro ert Forward of the Front Foundation Line of a DwellingUnit. No items of personal property may be permitted forward of the front foundation line of a Dwelling Unit. Notwithstanding the foregoing, exterior pots for flowers and plants not exceeding 24 inches in height shall be permitted provided that they are (1) weather resistant, (2) properly maintained, and (3) harmonious with the exterior colors and architecture of the Dwelling Unit. Section 7.34 Owner Maintenance, Owner Yard Maintenance and Owner Dama e Repairs. Each Owner shall be responsible for performing the Owner Maintenance to its Dwelling Unit at such Owner's sole cost and expense. Notwithstanding the foregoing, to the extent that any Utility Line Maintenance or Mechanicals Maintenance would also qualify as Shared Party Wall Maintenance, the provisions of Section 11.3 of this Supplemental Declaration shall control. Each Owner shall be responsible for performing the Owner Yard Maintenance to its Lot at such Owner's sole cost and expense (The Supplemental Association shall perform the "Supplemental Association Yard Maintenance" as defined in Article I above.). Each Owner shall perform all Owner Maintenance and Owner Yard Maintenance so as to keep its Dwelling Unit and Yard in good condition and repair. Each Owner shall be responsible for performing Owner Damage Repairs at such Owner's sole cost and expense. The Supplemental Association shall have the authority to adopt such standards, rules and regulations regarding Owner Maintenance, Owner Yard Maintenance, and Owner Damage Repairs as it may from time to time consider necessary or appropriate, and each Owner shall comply with any standards, rules and regulations so adopted. If the Board of Directors determines that any Yard or Dwelling Unit is not in compliance with the provisions of this Article VII, the Supplemental Association shall send written notice to the Owner of that Dwelling Unit or Yard identifying, with reasonable specificity, the items in need of repair or maintenance (a "Repair Notice"). If an Owner fails to comply with the provisions of this Section 7.34 after its receipt of such a Repair Notice, the Supplemental Association shall be entitled to enforce the provisions of this Section 7.34 in the manner contemplated under Section 12.1(k), below, and in any other manner permitted hereunder or by applicable law Section 7.35 No Additions or Enclosures. After a Dwelling Unit has been constructed pursuant to the plans and specifications approved by the Architectural Review Board pursuant to Section 7.3, above, and otherwise in compliance with the requirements of this Supplemental Declaration, that Dwelling Unit may not be altered so as to add any additional enclosed space to that Dwelling Unit by constructing an addition to that Dwelling Unit. An Owner may, however, enclose a covered patio area upon obtaining the prior approval of the Architectural Review Board as provided in Section 7.3 hereof. 24 ARTICLE VIII ARCHITECTURAL REVIEW BOARD Section 8.1 The Architectural Review Board. As used herein, the term "Architectural Review Board" will mean and refer to a group of individuals who will administer the duties described in Section 8.4 below. During the Development Period, the Architectural Review Board shall consist solely of Supplemental Declarant. Upon the expiration of the Development Period, the number of members of the Architectural Review Board shall automatically be increased to equal the number of members on the Board of Directors, and the individuals who are members of the Board of Directors shall automatically be deemed to be the members of the Architectural Review Board, without the necessity for further action. The term of membership for each member of the Architectural Review Board will be coterminous with the term of such individual's membership on the Board of Directors. Section 8.2 Removal and Vacancies. After the expiration of the Development Period, a member of the Architectural Review Board may only be removed in the event such member is removed from or otherwise ceases to be a member of the Board of Directors. Appointments to fill vacancies in unexpired terms on the Architectural Review Board shall be made in the same manner as members are appointed or elected to the Board of Directors. Section 8.3 Officers. At the first meeting of the Architectural Review Board (after the expiration of the Development Period) following each annual meeting of Members, the Architectural Review Board shall elect from among themselves a chairperson, a vice -chairperson and a secretary who shall perform the usual duties of their respective offices. Section 8.4 Duties. The Architectural Review Board shall regulate the external design and appearance of the Property and the external design, appearance and location of the improvements thereon in such a manner so as to preserve and enhance property values and to maintain harmonious relationships among Structures and the natural vegetation and topography in Ambleside Towns. During the Development Period, the Architectural Review Board shall regulate all initial construction, development and improvements on the Property and all modifications and changes to existing improvements on the Property. In furtherance thereof, the Architectural Review Board shall: (a) review and approve or disapprove written applications of Owners for proposed alterations or additions to Lots; (b) periodically inspect the Property for compliance with adopted, written architectural standards and approved plans for alteration; (c) adopt and publish architectural standards subject to the confirmation of the Board of Directors; (d) adopt procedures for the exercise of its duties; and PAI (e) maintain complete and accurate records of all actions taken by the Architectural Review Board. No request for approval by the Architectural Review Board or any committee thereof will be reviewed or otherwise considered unless submitted in writing by the Owner requesting such approval. In addition, prior to making a submission to the Architectural Review Board, an Owner shall attempt to obtain a written consent or approval of the proposed submission from the Owners of the Dwelling Units located adjacent the Dwelling Unit that is the subject of such submission (for purposes of this paragraph, adjacent Dwelling Units shall be those on either side of the subject Dwelling Unit when viewing it from the street). The Owner shall then include with its submission to the Architectural Review Board either (i) originals of such consents or approvals, as signed by the Owners of the adjacent Dwelling Units, (ii) a written statement signed by the applicant stating the efforts made to obtain such a consent or approval from the Owners of the adjacent Dwelling Units, or (iii) a combination of items (i) and (ii), if applicable. Any submission that lacks the foregoing shall be considered incomplete and the Architectural Review Board shall have no obligation to review such submission. Approval by the Architectural Review Board of a correctly filed application shall not be deemed to be an approval by Local Governing Authorities nor a waiver of the Supplemental Association's right to require an applicant to obtain any required approvals from any such Local Governing Authorities or to otherwise comply with applicable laws, rules, regulations and local ordinances. No approval by the Architectural Review Board or any committee thereof shall be effective unless in writing and signed by all of the members of the Architectural Review Board or the applicable committee whose approval is required hereunder. Section 8.5 Failure to Act. Failure of the Architectural Review Board, any committee thereof or the Board of Directors to respond to any request for approval, enforce the architectural standards contained in this Supplemental Declaration or to notify an Owner of noncompliance with architectural standards or approved plans for any period of time shall not constitute a waiver by the Architectural Review Board, any committee thereof or the Board of Directors of any provision of this Supplemental Declaration requiring such approval hereunder or otherwise prevent the Architectural Review Board, any committee thereof or the Board of Directors from enforcing this Supplemental Declaration at any later date. If approval has not been issued in writing within thirty (30) days after submission of an application to the Board of Directors, any committee thereof or the Architectural Review Board, then any such request shall be deemed to be denied. Section 8.6 Discretion. Supplemental Declarant intends that the members of the Architectural Review Board, and all committees thereof, exercise discretion in the performance of their duties, and every Owner by the purchase of a Lot shall be conclusively presumed to have consented to the exercise of discretion by the members of the Architectural Review Board and such committees. Section 8.7 Enforcement. Any exterior addition, change or alteration made without a written application to, and prior written approval of, the Architectural Review Board, shall be deemed to be in violation of this Supplemental Declaration and the Board of Directors shall have the right to require such exterior to be immediately restored to its original condition at the offending Owner's sole cost and expense. NT Section 8.8 Anaeal. Any aggrieved party may appeal a decision of the Architectural Review Board to the Board of Directors by giving written notice of such appeal to the Supplemental Association or any member of the Board of Directors within twenty (20) days of the adverse ruling. Section 8.9 Liability of the Architectural Review Board Su lemental Declarant and Supplemental Association. Neither the Architectural Review Board, nor any committee nor any agent thereof, nor Supplemental Declarant, nor the Supplemental Association, shall be liable in any way for any costs, fees, damages, delays, or any charges or liability whatsoever relating to the approval or disapproval of any plans submitted to it, nor shall the Architectural Review Board nor any committee thereof, nor any agent thereof, nor Supplemental Declarant, nor the Supplemental Association, be responsible in any way for any defects in any plans, specifications or other materials submitted to any of them, or for any defects in any work done according thereto. Further, the Architectural Review Board, its committees, Supplemental Declarant, and the Supplemental Association make no representations or warranties as to the suitability or advisability of the design, engineering, method of construction involved, or materials to be used. Each Owner should seek professional construction advice, engineering, and inspections with respect to such Owner's Lot, at such Owner's sole cost and expense, prior to proposing plans for approval by the Architectural Review Board, its committees or the Board of Directors. Section 8.10 Inspection, The Architectural Review Board and Supplemental Declarant may, but shall not be obligated to, inspect work being performed on a Lot or Dwelling Unit to assure compliance with the Restrictions, the restrictions containers in any plat of the Property and applicable regulations. However, neither the Architectural Review Board, nor any committee nor member thereof, nor Supplemental Declarant, nor any agent or contractor employed or engaged by any of the foregoing, shall be liable or responsible for defects or deficiencies in any work inspected or approved by any of them, or on behalf of any of them. Further, no such inspection performed or approval given by or on behalf of the Architectural Review Board, any committee thereof or Supplemental Declarant shall constitute a warranty or guaranty of the work so inspected or approved. Section 8.11 Supplemental Declarant Exemption. Notwithstanding anything in this Supplemental Declaration to the contrary, under no circumstances shall the Supplemental Declarant be required or obligated to obtain the consent of the Architectural Review Board, whether required under Article VI or this Article VII. ARTICLE IX EASEMENTS Section 9.1 General Easement Rights. Supplemental Declarant hereby grants a non- exclusive blanket easement over, across, through and under the Property to the Supplemental Association, its directors, officers, agents and employees, to any manager employed by or on behalf of the Supplemental Association, and to all police, fire, ambulance and all other emergency personnel and government, to enter upon the Property, in the exercise of the functions provided 27 for by this Supplemental Declaration, Articles, Bylaws and rules and regulations of the Supplemental Association, and in the event of emergencies or in the performance of governmental functions. Supplemental Declarant further grants a non-exclusive blanket easement over, across, through and under the Property to utility service providers for ingress, egress, installation, replacement, repair and maintenance of underground utility and service lines and systems, including, but not limited to, water, sewer, gas, telephones, electricity, television, cable or communication lines and systems. By virtue of this easement it shall be expressly permissible for Supplemental Declarant or the utility service provider to install, maintain and repair facilities and equipment on the Property if such utility service provider promptly restores the disturbed area, if any, as nearly as is practicable to the condition in which it was found, provided, however, that no sewcrs, electrical lines, water lines, or other utility service lines or facilities for such utilities may be installed or relocated except as proposed and approved in advance and in writing by Supplemental Declarant or, after the Authority Transfer Date, the Supplemental Association. Should any utility providing a service to the Property request a specific easement by separate recordable document, Supplemental Declarant or the Supplemental Association shall have the right to grant such easement with respect to the Property without conflicting with the terms hereof. This blanket easement shall in no way affect any other recorded easements on the Property, shall be limited to improvements as originally constructed, and shall not cover any portion of a Lot upon which a Dwelling Unit has been constructed. Section 9.2 Limitation on General Easement Riphts. The rights accompanying the easements provided for in Section 9.1 of this Article IX shall, except in the event of an emergency, be exercised only during reasonable daylight hours and then, whenever practicable, only after advance notice to any Owner or tenant directly affected. Section 9.3 flat Easements. In addition to such easements as are or may hereafter be created elsewhere in this Supplemental Declaration and as may have been or may hereafter be created by Supplemental Declarant pursuant to written instruments recorded in the Recorder's Office, all Lots are or shall be subject to drainage easements, sewer easements, other utility easements and Common Area access easements, which easements may be granted by Supplemental Declarant (prior to the Authority Transfer Date) or the Supplemental Association (from and after the Authority Transfer Date), as applicable, which grants may be made separately or in any combination thereof and which grants shall benefit Supplemental Declarant, Builder, Owners, the Supplemental Association, the Architectural Review Board and any committee thereof, and public utility companies or governmental agencies, as follows: (a) Drainage Easements (designated as "D.E." on the Plat) (each, a "Drainage Easement") are hereby granted for the mutual use and benefit of Supplemental Declarant, Builder and the Owners and are intended to provide paths and courses for area and local storm drainage, either overland or in adequate underground conduit, to serve the needs of Lancaster Towns and adjoining ground and/or public drainage systems. Under no circumstance shall said easements be blocked in any manner by the construction or reconstruction of any improvement, nor shall any grading restrict, in any manner, the water flow. The drainage easements and facilities are subject to construction or reconstruction to any extent necessary to obtain adequate drainage at any time by any governmental authority having 28 jurisdiction over drainage, or by Supplemental Declarant, the Supplemental Association or the Architectural Review Board; provided, however, that Supplemental Declarant, the Supplemental Association and the Architectural Review Board shall have no duty to undertake any such construction or reconstruction. The Owner of each Lot, by acceptance of a deed thereto, consents to the temporary storage (detention) of storm water within the Drainage Easement on such Owner's Lot. (b) Sewer Easements (designated as "S.E." on the Plat) may be granted for the use and benefit of the local governmental agency or public utility company having jurisdiction over any storm and sanitary waste disposal system designed to serve Lancaster Towns, for the purpose of installation and maintenance of sewers that are a part of said system. (c) Utility Easements (designated as "U.E." on the Plat) may be granted for the benefit of Supplemental Declarant, Builder, the Supplemental Association and all public or municipal utility companies, not including transportation companies, for the installation, maintenance and repair of mains, ducts, poles, lines and wires, and other facilities related to the specific utility. (d) Landscape Maintenance Access Easements — There may be strips of ground, as may be designated on a Plat of all or any part of the Property, marked Landscape Maintenance Access Easement ( "L.M.A.E."), which are hereby created over and across Lots as areas for installation and maintenance of landscaping, earth mounds, screening material, fencing, walls, neighborhood and community identification signs, directories, lighting, irrigation systems, walking paths and other improvements, and for ingress and egress thereby by the Supplemental Declarant and the Supplemental Association, and/or their assigns. The Owner of any Lot which is subject to the L.M.A.E. shall be required to keep the portion of his Lot which is subject to such easement free from obstructions so that access will not be unimpeded. All easements described in this Section 8.3 shall include the right of ingress and egress for the exercise of the respective rights granted. No structure, including fences, or any trees or shrubs shall be installed within any drainage, sewer or utility easement if such structure would (i) materially interfere with the utilization of such easement for the purpose intended, (ii) violate any applicable legal requirement, or (iii) violate the terms and conditions of any easement specifically granted to a Person who is not an Owner by an instrument recorded in the Recorder's Office. Notwithstanding the foregoing, Supplemental Declarant may install structures, trees or shrubs in violation of the foregoing restrictions and paved drives necessary to provide access to a Lot from a public street and sidewalks installed by or at the direction of Supplemental Declarant (and replacements thereof) shall not be deemed to be a "structure" for the purpose of the foregoing restriction. Section 9.4 Encroachments. If any improvement on a Lot or the Common Area now or hereafter encroaches on any other Lot or Common Area, by reason of (a) the original construction We thereof by Supplemental Declarant or Builder, which shall include, but not be limited to, any Party Wall or drive which encroaches over a Lot's boundary line and any drainage of stormwater from roofs and gutters, (b) deviations within normal construction tolerances in the maintenance, repair, replacement or reconstruction of any improvement, or (c) the settling or shifting of any land or improvement, an easement is hereby granted over the encroached -upon portion of such Lot or Common Area in favor of the Owner of the encroaching improvements, solely to the extent of such encroachment and solely for the period of time the encroachment exists (including replacements thereof), for the limited purposes of use, repair, replacement and maintenance of the encroaching improvement Section 9.5 Ingress/Egress Easement. Supplemental Declarant, its agents and employees, shall have a right of ingress and egress over the Common Area, and any roadways and drives within Lancaster Towns as required for construction of improvements and development of the Property, and otherwise as Supplemental Declarant deems to be necessary or for access to or ingress and egress to and from any Dwelling Unit. Section 9.6 Reservation of Right to Grant Future Easement. Supplemental Declarant reserves the right to (a) grant non-exclusive easements over any Lot or Common Area for the purposes of installing, repairing and/or maintaining utility lines of any sort, including, but not limited to, storm drains and drainage swales, sanitary sewers, gas lines, electric lines and cables, water lines, telephone lines, telecommunication lines and cables, and the like, and (ii) obtaining the release of any bonds posted with a municipality, governmental agency or regulatory agency, (b) grant non-exclusive easements over the Common Area to any municipal agency or private entity for any other purpose consistent with the "open space" designation thereof, and (c) in its sole discretion, grant licenses and non-exclusive easements over, under, across or through the Property in favor of owners of adjoining real property, and their tenants, successors and assigns, for purposes of providing access and utilities benefiting such adjoining real property. Section 9.7 Bonds and/or Dedication R uirements. Supplemental Declarant reserves the right to grant and reserve easements or to vacate or terminate easements across all Lots or Common Area as may be required by any governmental agency or authority or utility in connection with the release of improvement bonds or the dedication of public streets for maintenance by governmental agencies. Section 9.8 Easements for Corrective Work. Supplemental Declarant reserves a non-exclusive easement over, across, under, through and above all Lots and the Common Area for the purposes of correcting drainage, maintenance, landscaping, mowing and erecting street intersection signs, directional signs, temporary promotional signs, entrance features, lights and wail features, if any, and for the purpose of executing any of the powers, rights, or duties granted to or imposed upon the Supplemental Association in this Supplemental Declaration. Section 9,9 Easement for Exterior Maintenance. The Supplemental Association, its agents and employees, are hereby granted a right of ingress and egress over the Lots to the extent necessary or desirable to perform any Exterior Maintenance. Any Owner who has a dog present at its Lot shall provide the Supplemental Association with current information regarding telephone numbers of one or more individuals who can control that dog so that the Supplemental Association E may conveniently schedule Exterior Maintenance without interference from any dog at the Lot. In addition, each Owner shall reasonably cooperate with the Supplemental Association so as to allow the Supplemental Association, its agents and employees, to complete any Exterior Maintenance, including, without limitation, providing access to the interior of any Dwelling Unit to the extent reasonably necessary for the completion of the Exterior Maintenance. ARTICLE X PARKING No Owner, tenant, or any other Person shall park any type of vehicle in any Common Area. Temporary parking on or within any public right-of-way within the Property is prohibited except to the extent expressly permitted by Local Governing Authorities, and shall be subject to any restrictions or limitations relating thereto. The Board of Directors may promulgate such additional rules and regulations as it deems appropriate to regulate the use of any Common Areas for parking purposes, which rules and regulations may include the towing of any vehicles parked in violation of this Supplemental Declaration, with no notice of towing required and at the vehicle owner's sole expense. ARTICLE XI PARTY WALLS Section 11.1 General Rules of Law Annly. Each wall built as part of the original construction of a Dwelling Unit and situated upon the dividing line between two Lots shall constitute a Party Wall, and, to the extent not inconsistent with the provisions of this Article XI, the general rules of law regarding Party Walls and liability of Owners for property damage due to negligence or willful acts or omissions in connection with Party Walls shall apply thereto. Section 11.2 Use,• Other Changes. Either Owner shall have the right to use the side of the Party Wall facing the Owner's Dwelling Unit in any lawful manner, including attaching structural or finishing materials to it; however, in addition to meeting the other requirements of these Restrictions and of any building code or similar regulations or ordinances, any Owner proposing to modify the interior of its Dwelling Unit, make additions to or rebuild its Dwelling Unit in any manner which involves the alteration of any Party Wall shall first obtain the written consent of the adjoining Owner, whose consent shall not be unreasonably withheld, conditioned or delayed. If the adjoining Owner has not responded in writing to the requesting Owner within twenty-one (21) days of its receipt of any such written request, given by registered or certified mail, return receipt requested, such consent of the adjoining Owner shall be deemed to have been given. Section 1 l .3 Shared Party Wall Maintenance. Each Dwelling Unit is connected to another Dwelling Unit by way of a Party Wall. The Owners of each Dwelling Unit shall pay an equal share of all Shared Party Wall Maintenance attributable to the Party Wall that connects their individual Dwelling Unit. The decision to perform specific work included within Shared Party Wall Maintenance shall be made by the individual Owners of the Dwelling Units so 31 affected, including the selection of the contractors or other vendors and the method for the payment of the resulting costs. ARTICLE XII POWERS AND DUTIES OF THE SUPPLEMENTAL ASSOCIATION Section 12.1 Discretionn Powers and Duties. The Supplemental Association shall have the following powers and duties which may be exercised in its discretion: (a) to enforce any covenants or restrictions which are imposed by the terms of this Supplemental Declaration or which may be imposed on any part of the Property. Nothing contained herein shall be deemed to prevent the Owner of any Lot from enforcing any building restriction in its own name. The foregoing rights of enforcement shall not prevent (i) changes, releases or modifications of the restrictions or reservations placed upon any part of the Property by any party having the right to make such changes, releases or modifications in the deeds, contracts, declarations or plats in which such restrictions and reservations are set forth; or (ii) the assignment of the foregoing rights by the proper parties wherever and whenever such rights of assignment exist. Neither the Supplemental Association nor the Board of Directors shall have a duty to enforce the covenants by an action at law or in equity if either party believes such enforcement is not in the Supplemental Association's best interest. The expenses and costs of any enforcement proceedings shall be paid out of the general fund of the Supplemental Association; provided, however, that the foregoing authorization to use the general fund for such enforcement proceedings shall not preclude the Supplemental Association from collecting such costs from the offending Owner; (b) to use the Common Area and any improvements or facilities erected thereon, subject to the general rules and regulations established and prescribed by the Declaration; (c) to exercise all rights, responsibilities and control over all easements which the Supplemental Association may from time to time acquire, including, but not limited to, those easements specifically reserved to the Supplemental Association in Article IX above; (d) to create, grant and convey easements and licenses upon, across, over and under the Property, including but not limited to easements for the installation, replacement, repair and maintenance of utility lines serving the Property; (e) subject to the limitations set forth in Section 12.3 hereof, to employ counsel and institute and prosecute such suits as the Supplemental Association may deem necessary or advisable, and to defend suits brought against the Supplemental Association; 32 (f) to retain, as an independent contractor or employee, a manager of the Supplemental Association and such other employees or independent contractors as the Board of Directors deems necessary, and to prescribe the duties of employees and scope of services of independent contractors; (g) to enter upon any Lot to perform emergency repairs or to do other work reasonably necessary for the proper maintenance or protection of the Property; (h) to enter (or have the Supplemental Association's agents or employees or contractors enter) upon any Lot to repair, maintain or restore the Lot or perform such other acts as may be reasonably necessary to make such Lot and improvements situated thereon, if any, conform to the requirements of these Restrictions, if such is not performed by the Owner of the Lot, and to assess the Owner of the Lot the costs thereof, such assessment to be a lien upon the Lot equal in priority to the lien provided for in Article VI herein; provided, however, that the Board of Directors shall only exercise this right after giving the Owner written notice of its intent at least fourteen (14) days prior to such entry. Neither the Supplemental Association nor any of its agents, employees, or contractors shall be liable for any damage, which may result from any maintenance work performed hereunder; (i) to remove a member of the Board of Directors and declare such member's office to be vacant in the event such member shall be absent from three (3) consecutive regular meetings of the Board of Directors; (j) to exercise all rights granted to the Supplemental Association as set forth in other provisions of this Supplemental Declaration; and (k) to enter into contracts on behalf of the Supplemental Association, subject to the limitations and requirements contained within the HOA Act. Section 12.2 Mandatory Powers and Duties. The Supplemental Association shall exercise the following powers, rights and duties: (a) after the termination of the Class B membership, to obtain and maintain without interruption liability coverage for any claim against a director or officer for the exercise of its duties and fidelity coverage against dishonest acts on the part of directors, officers, trustees, managers, employees or agents responsible for handling funds collected and held for the benefit of the Supplemental Association. The fidelity bond shall cover the maximum funds that will be in the custody of the Supplemental Association or its management agent at any time while the bond is in place. The fidelity bond coverage shall be in an amount as may be determined to be reasonably prudent by the Board of Directors; (b) to obtain and maintain without interruption a comprehensive coverage of public liability and hazard insurance covering the Common Area and easements of which 33 the Supplemental Association is a beneficiary, if available at reasonable cost. Such insurance policy shall contain a severability of interest clause or endorsement which shall preclude the insurer from denying the claim of an Owner because of negligent acts of the Supplemental Association or other Owners. The scope of coverage shall include all coverage in kinds and amounts commonly obtained with regard to projects similar in construction, location and use as determined by the Board of Directors. Further, the public liability insurance must provide coverage of at least $1,000,000.00 for bodily injury, including death, and property damage for any single occurrence; (c) to provide for the maintenance of any and all (i) easement areas of which the Supplemental Association is the beneficiary and for which it has the maintenance responsibility; and (ii) facilities, including, but not limited to, fences and signs, authorized by the Supplemental Association and erected on any easements granted to the Supplemental Association, and (iii) to perform the Exterior Maintenance; (d) to set and collect Assessments as provided in Article V, above; (e) to pay all proper bills, taxes, charges and fees on a timely basis; (f) to maintain its corporate status; Section 12.3 Limitation on Supplemental Association Action. The Supplemental Association shall hold a duly authorized, duly noticed special meeting of the Members of the Supplemental Association prior to commencing or prosecuting any judicial or administrative proceeding, and no judicial or administrative proceeding shall be commenced or prosecuted by the Supplemental Association except upon the affirmative vote of at least seventy-five percent (75%) of the votes cast at said special meeting by Members entitled to vote authorizing the commencement and prosecution of the proposed action. This Section 12.3 shall not apply to (a) actions brought by the Supplemental Association to enforce the provisions of this Supplemental Declaration, the Bylaws, or rules and regulations adopted by the Board of Directors (including, without limitation, any action to recover Regular Assessments or Special Assessments or other charges or fees or to foreclose a lien for such items) or (b) counterclaims brought by the Supplemental Association in connection with proceedings instituted against it. The rights and powers of the Supplemental Association shall at all times be subject to the requirements of the HOA Act. Section 12.4 Board of Directors Authority to Act, Unless otherwise specifically provided in the Supplemental Association's documents, all rights, powers, easements, obligations and duties of the Supplemental Association may be performed by the Board of Directors. Notwithstanding anything to the contrary contained herein, any rules or regulations which are promulgated by the Board of Directors may be repealed or amended by a majority vote of the Members cast, in person or by proxy, at a meeting convened for such purpose in accordance with the Bylaws. 34 Section 12.5 Con ensation. No director or officer of the Supplemental Association shall receive compensation for services as such director or officer except to the extent expressly authorized by a majority vote of the Class A Members. Section 12.6 Non -liability of Directors Officers and Board Members. The directors and officers of the Supplemental Association and members of the Architectural Review Board, and all committees thereof, shall not be liable to the Owners or any other persons for any error or mistake of judgment in carrying out their duties and responsibilities as directors or officers of the Supplemental Association or members of the Architectural Review Board, or any committee thereof, except for their own individual willful misconduct or gross negligence. It is intended that the directors and officers of the Supplemental Association and members of the Architectural Review Board, and all committees thereof, shall have no personal liability with respect to any contract made by them in good faith on behalf of the Supplemental Association, and the Supplemental Association shall indemnify and hold harmless each of the directors, officers, Architectural Review Board members, or committee members against any and all liability to any person, firm or corporation arising out of contracts made in good faith on behalf of the Supplemental Association. Section 12.7 Indemnity of Directors and Officers and Members of the Architectural Review Board. Except with respect to matters (i) as to which it is adjudged in any civil action, suit, or proceeding that such person is liable for gross negligence or willful misconduct in the performance of his or her duties, or (ii) to which it is adjudged in any criminal action, suit or proceeding that such person had reasonable cause to believe that such person's conduct was unlawful or that person had no reasonable cause to believe that such person's conduct was lawful, the Supplemental Association shall indemnify, hold harmless and defend any person, his or her heirs, assigns and legal representatives (collectively, the "Indemnitee") made or threatened to be made a party to any action, suit or proceeding, or subject to any claim, by reason of the fact that he or she is or was a director or officer of the Supplemental Association or member of the Board of Directors, of the Architectural Review Board, or any committee thereof, from and against (1) all liability, including, without limitation, the reasonable cost of settlement of, or the amount of any judgment, fine, or penalty rendered or assessed in any such claim, action, suit, or proceeding; and (2) all costs and expenses, including attorneys' fees, actually and reasonably incurred by the Indemnitee in connection with the defense of such claim, action, suit or proceeding, or in connection with any appeal thereof. In making such findings and notwithstanding the adjudication in any action, suit or proceeding against an Indemnitee, no director or officer of the Supplemental Association, or member of the Board of Directors or the Architectural Review Board, or any committee thereof, shall be considered or deemed to be guilty of or liable for gross negligence or willful misconduct in the performance of his or her duties where, acting in good faith, such director or officer of the Supplemental Association, or member of the Architectural Review Board, or any committee thereof, relied on the books and records of the Supplemental Association or statements or advice made by or prepared by any managing agent of the Supplemental Association or any director, officer or member of the Supplemental Association, of any accountant, attorney or other person, firm or corporation employed by the Supplemental Association to render advice or service, unless such director, officer or member had actual knowledge of the falsity or incorrectness thereof; nor shall a director, officer or member be deemed guilty of gross negligence or willful misconduct by virtue of the fact that he or she failed or neglected to attend a meeting or 35 meetings of the Supplemental Association, the Board of Directors or the Architectural Review Board, or any committee thereof. The costs and expenses incurred by an Indemnitee in defending any action, suit or proceeding may be paid by the Supplemental Association in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the Indemnitee to repay the amount paid by the Supplemental Association if it shall ultimately be determined that the Indemnitee is not entitled to indemnification or reimbursement as provided in this Article XI. ARTICLE XIII RIGHTS OF MORTGAGEES Unless a right is waived by the appropriate Federal Agency, all Mortgagees shall have the following rights: Section 13.1 Veterans Administration. To the extent required by the Veteran's Administration (the "VA"), if any of the Lots are security for a loan guaranteed by the VA and if there is a Class B Member: (a) Supplemental Declarant must provide to the VA a copy of all amendments to the Supplemental Declaration. The Supplemental Association may not make any Material Amendment or take any Extraordinary Action (as such terms are defined in Article XII) without the approval of the VA. (b) Eligible Mortgagees shall have the following rights: (i) the right to inspect Supplemental Association documents and records on the same terms as the Members; notice of any Material Amendment of the Supplemental Association documents; (iii) notice of any Extraordinary Action of the Supplemental Association; (iv) notice of any property loss, condemnation or eminent domain proceeding affecting the Common Area resulting in a loss greater than ten percent (10%) of the annual budget or affecting any Lot insured by the Supplemental Association in which the Eligible Mortgagee has an interest; (v) notice of any termination, lapse or material modification of an insurance policy held by the Supplemental Association; (vi) notice of any default by an Owner of a Lot subject to a mortgage held by the Eligible Mortgagee in paying assessments or charges to the 36 Supplemental Association which default remains uncured for sixty (60) consecutive days; (vii) notice of any proposal to terminate the Supplemental Declaration or dissolve the Supplemental Association at least thirty (30) days before any action is taken; (viii) the right of a majority of the Eligible Mortgagees to demand professional management; and (ix) the right of a majority of the Eligible Mortgagees to demand an audit of the Supplemental Association's financial records. Section 13.2 Federal Housin Authorit . To the extent required by the Federal Housing Authority (the "FHA"), if any of the Lots are security for a loan insured by the FHA and if there is a Class B Member, the following actions will require the prior approval of the FHA: (a) annexation of additional properties; (b) mergers, consolidations and dissolution of the Supplemental Association; (c) mortgaging or conveyance of the Common Area; and (d) Material Amendment of this Supplemental Declaration. Section 13.3 Freddie Mac. Assuming that Mortgagees may securitize pools of mortgages, including mortgages on Lots and/or Dwelling Units in Lancaster Towns, with the Federal Home Loan Mortgage Corporation (a/k/a "Freddie Mac"), the following requirements shall apply to all Lots and Dwelling Units in Lancaster Towns: (a) Unless at least two-thirds (2/3) of the first Mortgagees (based on one vote for each first mortgage owned) or two-thirds (2/3) of the Class A Members have given their prior written approval, the Supplemental Association shall not take any of the following actions: (i) by act or omission, seek to abandon, partition, subdivide, encumber, sell or transfer the Common Area. The re -subdivision and/or adjustment of boundary lines of the Common Area and the granting of easements by the Supplemental Association shall not require the consent described in subsection (a) above; change the method of determining the obligations, assessments, dues, or other charges that may be levied against an Owner; (iii) by act or omission, waive or abandon any scheme of regulations or their enforcement pertaining to the architectural design or the exterior 37 appearance of Dwelling Units and their appurtenances, the exterior maintenance of Dwelling Units and their appurtenances, the maintenance of the Common Area, common fences and driveways, and the upkeep of lawns and plantings in the Property; (iv) fail to maintain fire and extended coverage insurance on insurable parts of the Common Area or other property owned by the Supplemental Association on a current replacement cost basis in an amount not less than one hundred percent (100%) of the insurable value, based on current replacement costs, not including land value; or (v) use hazard insurance proceeds for losses to the Common Area or other property owned by the Supplemental Association for other than the repair, replacement or reconstruction of such property. (b) A Mortgagee shall be given written notification from the Supplemental Association of any default in the performance of any obligation under this Supplemental Declaration or related Supplemental Association documents by the Owner of a Lot that is the security for the indebtedness due the Mortgagee, which default is not cured within sixty (60) days after the Owner's receipt of notice of the default. (c) A Mortgagee may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the Common Area and may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage upon the lapse of a policy for such Common Area. The Mortgagee making such payments shall be owed immediate reimbursement therefor from the Supplemental Association. (d) The assessments imposed by the Supplemental Association shall include an adequate reserve fund for maintenance, repairs and replacements for those parts of the Common Area which may be replaced or require maintenance on a periodic basis. Such reserves shall be payable in regular installments rather than by Special Assessment. Section 13.4 Fannie Mae. Assuming that Mortgagees may secure funding for mortgage loans by selling mortgage loans, including mortgages on Lots and/or Dwelling Units in Lancaster Towns, to the Federal National Mortgage Supplemental Association (a/k/a "Fannie Mae"), the following requirements shall apply to all Lots and Dwelling Units in Lancaster Towns: (a) A Mortgagee shall be given written notification from the Supplemental Association of the following: (i) any condemnation or casualty loss that affects either a material portion of the Common Area or the Lot that is the security for the indebtedness due the Mortgagee; 38 any default in the performance of any obligation under this Supplemental Declaration or related Supplemental Association documents by the Owner of a Lot that is the security for the indebtedness due the Mortgagee, which default is not cured within sixty (60) days after the Owner's receipt of notice of the default; any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Supplemental Association; or (iv) any proposed action that would require the consent of a specified percentage of Mortgagees. (b) Provided that improvements have been constructed in the Common Area and provided that a Mortgagee gives written notice to the Supplemental Association that it has relied on the value of the improvements in making a loan on a portion or all of the Property, then unless at least sixty-seven percent (67%) of the Members, and Mortgagees representing at least fifty-one percent (51 %) of those Lots with Mortgages have given their prior written approval, the Supplemental Association shall not add or amend any material provision of this Supplemental Declaration or related Supplemental Association documents concerning the following: (i) voting rights of any Member; (ii) assessments, assessment liens, or subordination of such liens; (iii) reserves for maintenance, repair and replacement of those parts of the Common Area that may be replaced or require maintenance on a periodic basis; (iv) responsibility for maintenance and repair of the Property; (v) reallocation of interests in the Common Area or rights to its use, except as provided in Article III and Article IV herein; (A) converting Lots into Common Area or vice versa; (vii) annexation or withdrawal of property to or from the Property; (viii) insurance or fidelity bonds; (ix) leasing of Dwelling Units; (x) imposition of any right of first refusal or similar restriction on the right of an Owner to sell, transfer or otherwise convey its property; 39 (xi) a decision by the Supplemental Association to establish self -management when professional management has been required previously by a Mortgagee; (xii) restoration or repair of the Property after a hazard damage or partial condemnation; (xiii) any provisions that are for the express benefit of Mortgagees; and (xiv) termination of the legal status of the Supplemental Association after substantial destruction or condemnation of the subdivision occurs. An addition or amendment to this Supplemental Declaration or related Supplemental Association documents shall not be considered material if it is for the purpose of clarification or correcting errors. A Mortgagee who receives a written request to approve additions or amendments who does not deliver or post to the requesting party a negative response within thirty (30) days of receipt of such request shall be deemed to have approved such request. Section 13.5 General. (a) Condemnation. In the event that there is a condemnation or destruction of the Common Area or other property owned by the Supplemental Association, to the extent practicable, condemnation or insurance proceeds shall be used to repair or replace the condemned or destroyed property. (b) Books and Records, A Mortgagee shall have the right to examine and copy at its expense the books and records of the Supplemental Association during normal business hours and upon reasonable notice to the Supplemental Association. (c) Notice. As set forth in this Article XII, Mortgagees shall have the right, upon request, to receive notice of (a) the decision of the Owners to abandon or terminate the Planned Unit Development (as defined by Fannie Mae); (b) any material amendment to the Supplemental Declaration, the Bylaws or the Articles; and (c) if professional management has been required by a Mortgagee, the decision of the Supplemental Association to terminate such professional management and assume self -management. (d) Excess Proceeds. Should there be excess insurance or condemnation proceeds after the renovation, repair or reconstruction called for herein, such excess proceeds may be distributed equally to the Owners, apportioned equally among the Lots; subject, however, to the priority of a Mortgagee with regard to the proceeds applicable to the Lot securing said Mortgagee and in accordance with Indiana law. (e) Audited Financial Statement. The Supplemental audited financial statement for the preceding fiscal written request. Association shall provide an year to a Mortgagee upon its 40 (f) Termination. Eligible Mortgagees representing at least sixty-seven percent (67%) of the votes of the mortgaged Lots must consent to the termination of the legal status of the Supplemental Association for reasons other than substantial destruction or condemnation of the Property. (g) Damage to Common Area, The Supplemental Association shall cause the immediate repair, reconstruction or renovation of any damage to the Common Area unless a decision not to repair, reconstruct or renovate is approved by the Board of Directors and a majority of the Mortgagees. ARTICLE XIV GENERAL PROVISIONS Section 14.1 Enforcement, The Supplemental Association or any Owner shall have the right to enforce, by a proceeding at law or in equity, all restrictions, conditions, covenants, reservations, easements, liens and charges now or hereafter imposed by the provisions of this Supplemental Declaration or other Supplemental Association documents unless such right is specifically limited herein or therein. Failure by the Supplemental Association or by any Owner to enforce any right, provision, covenant or condition which may be granted by this Supplemental Declaration shall not constitute a waiver of the right of the Supplemental Association or an Owner to enforce such right, provision, covenant or condition in the future. All rights, remedies and privileges granted to the Supplemental Association or any Owner pursuant to any term, provision, covenant or condition of the Supplemental Declaration shall be deemed to be cumulative and the exercise of any one or more thereof shall not be deemed to constitute an election of remedies nor shall it preclude the party exercising the same from exercising such privileges as may be granted to such party by this Supplemental Declaration or at law or in equity. Section 14.2 Severabilit • Headings. Conflicts. Invalidation of any one of the provisions of this Supplemental Declaration by judgment or court order shall in no way affect any other provision, which shall remain in full force and effect. Titles of paragraphs are for convenience only and are not intended to limit or expand the covenants, rights or obligations expressed therein. In the case of any conflict between the Articles and this Supplemental Declaration, this Supplemental Declaration shall control; in the case of any conflict between this Supplemental Declaration and the Bylaws, this Supplemental Declaration shall control. Section 14.3 Duration. The covenants and restrictions of this Supplemental Declaration shall run with and bind the Property and shall inure to the benefit of and be enforceable by the Supplemental Association or the Owner of any Lot subject to this Supplemental Declaration, their respective legal representatives, heirs, successors and assigns, unless such right is specifically limited herein, for a term of twenty (20) years from the date this Supplemental Declaration is recorded, after which time the covenants and restrictions of this Supplemental Declaration shall be automatically extended for successive periods of twenty (20) years each, unless terminated by a written and recorded instrument approved in advance by the affirmative and unanimous vote of all Members of the Supplemental Association and their respective Mortgagees. 41 Section 14.4 Material Amendment/Extraordina Action. (a) Approval . Requirements. In accordance with Federal Agencies' requirements, material amendments ("Material Amendments") or extraordinary actions ("Extraordinary Actions"), as each such term is defined below, must be approved by Members entitled to cast at least sixty-seven percent (67%) of the votes of Members present and voting, in person or by proxy, at a meeting held in accordance with the notice and quorum requirements for Material Amendments and Extraordinary Actions contained in the Bylaws, such vote including the vote of a majority of the Class A Members present and voting, in person or by proxy, at such meeting and the vote of the Class B Member, if any. (b) Material Amendment. A Material Amendment includes adding, deleting or modifying any provision regarding the following: (i) assessment basis or assessment liens; any method of imposing or determining any charges to be levied against individual Owners; reserves for maintenance, repair or replacement of Common Area improvements; (iv) maintenance obligations; (v) allocation of rights to use Common Areas, except as provided in Article III and Article 1V herein; (vi) any scheme of regulation or enforcement of standards for maintenance, architectural design or exterior appearance of improvements on Lots; (vii) reduction of insurance requirements; (viii) restoration or repair of Common Area improvements in a manner inconsistent with the provisions of this Supplemental Declaration; (ix) the annexation or withdrawal of land to or from the Property; (x) voting rights; (xi) restrictions affecting leasing or sale of a Lot; or (xii) any provision which is for the express benefit of Mortgagees. (c) Extraordinary Aciioza. Alternatively, an Extraordinary Action includes: 42 (i) merging or consolidating the Supplemental Association (other than with another non-profit entity formed for purposes similar to this Supplemental Association); (ii) determining not to require professional management if that management has been required by the Supplemental Association documents, a majority of eligible Mortgagees or a majority vote of the Members; (iii) expanding the Supplemental Association to include land not previously described as annexable which increases the overall land area of the project or number of Lots by more than ten percent (10%); (iv) abandoning, partitioning, encumbering, mortgaging, conveying, selling or otherwise transferring the Common Area except for (i) granting easements; (ii) dedicating Common Area as required by a public authority; (iii) re - subdividing or adjusting the boundary lines of the Common Area; or transferring Common Area pursuant to a merger or consolidation with a non-profit entity formed for purposes similar to the Supplemental Association; (v) using insurance proceeds for purposes other than reconstruction or repair of the insured improvements; or making capital expenditures (other than for repair or replacement of existing improvements) during any period of twelve (12) consecutive months costing more than twenty percent (20%) of the annual operating budget. (d) Class Amendments. Any Material Amendment which changes the rights of any specific class of Members must be approved by Members entitled to cast at least fifty-one percent (51 %) of the votes of all Members of such class present and voting, in person or by proxy, at a meeting held in accordance with the requirements contained in the Bylaws. (e) Material Amendment and/or Extraordinga Actions Amendments. The following Material Amendments and Extraordinary Actions must be approved by Members entitled to cast at least sixty-seven percent (67%) of the total authorized votes of all Members of the Supplemental Association, including at least a majority of the total authorized votes entitled to be cast by Class A Members and the vote of the Class B Member, if any: (i) termination of this Supplemental Declaration; (ii) dissolution of the Supplemental Association, except pursuant to a consolidation or merger; and (iii) conveyance of all Common Areas. 43 (f) VA Amendments. If the VA has guaranteed any loans secured by a Lot, so long as there is a Class B Member, all Material Amendments and Extraordinary Actions must have the approval of the VA. Section 14.5 Amendment. Amendments to this Supplemental Declaration other than Material Amendments or Extraordinary Actions shall be approved by at least sixty-seven percent (67%) of the votes entitled to be cast by all Members present and voting, in person or by proxy, at any duly called and conveyed meeting, or in writing by Members entitled to cast at least sixty- seven percent (67%) of the total authorized votes of all Members and the vote of the Class B Member, if any. Any amendment to this Supplemental Declaration must be properly executed and acknowledged by the Supplemental Association (in the manner required by law for the execution and acknowledgment of deeds) and recorded among the appropriate land records. Section 14.6 Special Amendment. Supplemental Declarant may make any amendment required by any of the Federal Agencies or by the Local Governing Authorities, as a condition of the approval of this Supplemental Declaration, by the execution and recordation of such amendment following notice to all Members. Notwithstanding anything herein to the contrary, Supplemental Declarant hereby reserves the right prior to the Authority Transfer Date to unilaterally amend and revise the standards, covenants and restrictions contained in this Supplemental Declaration for any reason. No such amendment, however, shall restrict or diminish materially the rights or increase or expand materially the obligations of Owners with respect to Lots conveyed to such Owners prior to the amendment or adversely affect the rights and interests of Mortgagees holding first mortgages on Lots at the time of such amendment. Supplemental Declarant shall give notice in writing to such Owners and Mortgagees of any amendments. Supplemental Declarant shall not have the right at any time by amendment of this Supplemental Declaration to grant or establish any easement through, across or over any Lot which Supplemental Declarant has previously conveyed without the consent of the Owner of such Lot. All amendments to this Supplemental Declaration shall be in writing and recorded among the appropriate land records. Section 14.7 Waiver. Supplemental Declarant hereby expressly reserves unto itself (so long as these Restrictions are in effect), the unqualified right to waive or alter from time to time such of the herein contained restrictions as it may deem best, as to any one or more of the Lots, which waiver or alteration shall be evidenced by the mutual written consent of Supplemental Declarant and the then -Owner of the Lot as to which some or all of said restrictions are to be waived or altered; such written consent shall be duly acknowledged and recorded in the Recorder's Office. Section 14.8 Withdrawable Real Estate. (a) Prior to the Authority Transfer Date, Supplemental Declarant shall have the unilateral right, without the consent of the Class A Members or any Mortgagee, to 44 execute and record an amendment to this Supplemental Declaration withdrawing any portion of the Property upon which Dwelling Units have not been constructed. (b) Upon the dedication or the conveyance to any public entity or authority of any portion of the Property for public street purposes, this Supplemental Declaration shall no longer be applicable to the land so dedicated or conveyed. Section 14.9 Management Contracts. The Board of Directors may enter into professional management contract(s) for the management of the Property, in accordance with the Articles and Bylaws. Section 14.10 Dissolution. Subject to the restrictions and conditions contained in this Article XIV, the Supplemental Association may be dissolved with the assent given in writing and signed by at least two-thirds (2/3) of each class of Members and in accordance with Article 13 of the Act. Upon dissolution of the Supplemental Association, other than incident to a merger or consolidation, the assets of the Supplemental Association, both real and personal, shall be offered to an appropriate public agency to be devoted to purposes and uses that would most nearly reflect the purposes and uses to which they were required to be devoted by the Supplemental Association. In the event that such offer of dedication is refused, such assets shall be then offered to be granted, conveyed or assigned to any non-profit corporation, trust or other organization devoted to similar purposes and in accordance with Indiana law. Any such dedication or transfer of the Common Area shall not be in conflict with then -governing zoning ordinances or the designation of the Common Area as "open space". Section 14.11 Negligence. Each Owner shall be liable for the expense of any maintenance, repair or replacement rendered necessary by his negligence or by that of any member of his family or his or their guests, employees, agents, invitees or lessees, to the extent that such expense is not covered by the proceeds of insurance carried by the Supplemental Association. An Owner shall pay the amount of any increase in insurance premiums occasioned by violation of any of the Restrictions by such Owner, any member of his family or their respective guests, employees, agents, invitees or tenants. Section 14.12 Acceptance and Ratification. All present and future Owners, Mortgagees, tenants and occupants of the Lots and Dwelling Units, and other Persons claiming by, through or under them, shall be subject to and shall comply with the provisions of this Supplemental Declaration, the Articles, the By -Laws and the rules, regulations and guidelines as adopted by the Board of Directors and (to the extent of its jurisdiction) the Architectural Review Board, or any committee thereof, as each may be amended or supplemented from time to time. The acceptance of a deed of conveyance or the act of occupancy of any Lot or Dwelling Unit shall constitute an agreement that the provisions of this Supplemental Declaration, the Articles, the Bylaws and rules, regulations and guidelines, as each may be amended or supplemented from time to time, are accepted and ratified by such Owner, tenant or occupant, and all such provisions shall be covenants running with the land and shall bind any Person having at any time any interest or estate in a Lot or Dwelling Unit or the Property, all as though such provisions were recited and stipulated at length in each and every deed, conveyance, mortgage or lease thereof. All Persons who may own, occupy, use, enjoy or control a Lot or Dwelling Unit or any part of the Property in any manner shall be 45 subject to this and guidelines applicable thereto as each may be amended or supplemented from time to time. Section 14.13 Perpetuities. If any of the covenants, conditions, restrictions, or other provisions of this Supplemental Declaration would be unlawful, void, or voidable for violation of the common law rule against perpetuities, then such provisions shall continue on for the maximum amount of time as allowed by Indiana Code 32-17-8, et seq. as amended from time to time. ARTICLE XV OWNER'S INSURANCE Section 15.1 Owner's Insurance Obligations. Notwithstanding anything to the contrary contained in this Supplemental Declaration, each and every Owner shall maintain Dwelling Unit Insurance on its Dwelling Unit at all times and at its sole cost and expense. Each Owner shall provide evidence of its Dwelling Unit Insurance promptly following any written request by the Supplemental Association, which request may be made from time to time. Said evidence of insurance shall show the Supplemental Association as the certificate holder. To the extent that any Owner does not have the types or amounts of insurance required for Dwelling Unit Insurance, such an Owner shall immediately obtain the required insurance and provide written evidence thereof to the Supplemental Association. In addition, to the extent that a Dwelling Unit is damaged and that damage is covered by the Structure Insurance, the Owner of the Dwelling Unit so damaged shall be responsible for the payment of the deductible on the Structure Insurance; provided, however, in the event such damage extends to two Dwelling Units that are connected by a Party Wall, the deductible on the Structure Insurance shall be shared equally by the Owners of the two Dwelling Units so damaged. 46 WITNESS the following signatures: STATE OF INDIANA 6SI COUNTY OF HAMILTON SUPPLEMENTAL DECLARANT: Hoffiinan Developer, LLC By: Steven R. Edwards Vice President - Chief Financial Officer Before me, a Notary Public in and for said County and State, personally appeared Steven R. Edwards, the Vice President - Chief Financial of Hoffinan Developer, LLC, who acknowledged the execution of the foregoing Supplemental Declaration of Covenants, Conditions and Restrictions for Lancaster Towns, and who, having been duly sworn, stated that any representations therein contained are true. Witness my hand and Notarial Seal this 29 h day f December, 20211.. �J, Printed: Resident of: do" t- r0y/-) ' `1 My Commission Expires: I t) c "1 2-0 :x� t STACY A. SIN3ER� Boone County My Commission Expires ortobor 1" "'623 This instrument was prepared by and after recording return to: Steven R. Edwards, Platinum Properties Management Company, LLC, 9757 Westpoint Drive, Suite 600, Indianapolis, Indiana 46256. I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. Steven R. Edwards 47 EXHIBIT A Legal Description of Real Estate Part of Section JA: Lots 2201-2204, 2301-2304 and 240I-2404 Proposed Lots 2201-2204, 2301-2304 and 2401-2404 in Ambleside, being a part of the East Half of the Northwest Quarter of Section 21, Township 18 North, Range 3 East of the Second Principal Meridian, Clay Township, Hamilton County, Indiana, based upon an ALTAINSPS Land Title Survey prepared by Kristopher K. Eichhorn, Professional Surveyor Number 21000230, HWC Engineering Job Number 2020-051, dated February 3, 2020, and last revised May 21, 2021, more particularly described as follows: COMMENCING at the northeast corner of said Quarter Section, said corner marked by a Harrison Monument per Hamilton County Surveyor's Office Corner Records; thence South 89 degrees 09 minutes 42 seconds West (assumed bearing per survey recorded as Instrument Number 9609611604 in the Office of the Recorder of Hamilton County, Indiana) along the north line of said quarter section a distance of 198.34 feet; thence South 00 degrees 50 minutes 18 seconds East a distance of 172.08 feet to the POINT OF BEGINNING; thence South 00 degrees 00 minutes 00 seconds East a distance of 291.00 feet to the point of curvature of a curve to the right having a radius of 20.00 feet and subtended by a long chord having a bearing of South 44 degrees 59 minutes 27 seconds West and a chard length of 28.28 feet; thence southwesterly along said curve an arc distance of 31.41 feet; thence South 89 degrees 58 minutes 53 seconds West a distance of 69.01 feet; thence North 00 degrees 00 minutes 00 seconds West a distance of 311.02 feet; thence North 90 degrees 00 minutes 00 seconds East a distance of 89.00 feet; to the POINT OF BEGINNING, containing 0.633 acres, more or less. 48 EXHIBIT B Legal Description of Additional Real Estate Lots 1001-1005 and 1101-1106 Proposed Lots 1001-1005 and 1101-1106 in Ambleside, being a part of the Eas# Half of the Northwest Quarter of Section 21, Township 18 North, Range 3 East of the Second Principal Meridian, Clay Township, Hamilton County, Indiana, based upon an ALTA/NSPS Land Title Survey prepared by Kristopher K. Eichhorn, Professional Surveyor Number 21000230, HWC Engineering Job Number 2020-051, dated February 3, 2020, and last revised May 21, 2021, more particularly described as follows: COMMENCING at the northeast comer of said Quarter Section, said corner marked by a Harrison Monument per Hamilton County Surveyor's Office Comer Records; thence South 89 degrees 09 minutes 42 seconds West (assumed bearing per survey recorded as Instrument Number 9609611604 in the Office of the Recorder of Hamilton County, Indiana) along the north line of said quarter section a distance of 223.91 feet; thence South 00 degrees 50 minutes 18 seconds East a distance of 37.06 feet to the POINT OF BEGINNING; thence South 00 degrees 00 minutes 00 seconds West a distance of 90.63 feet; thence North 90 degrees 00 minutes 00 seconds West a distance of 245.00 feet; thence North 00 degrees 00 minutes 00 seconds East a distance of 99.11 feet; thence North 89 degrees 09 minutes 42 seconds East a distance of 233.14 feet; thence South 45 degrees 00 minutes 00 seconds East a distance of 16.81 feet to the POINT OF BEGINNING, containing 0.566 acres, more or less. Also including the following: Lots 1201-1206 and 2501-250fr Proposed Lots 1201-1206 and 2501-2506 in Ambleside, being a part of the East Half of the Northwest Quarter of Section 21, Township 18 North, Range 3 East of the Second Principal Meridian, Clay Township, Hamilton County, Indiana, based upon an ALTA/NSPS Land Title Survey prepared by Kristopher K. Eichhom, Professional Surveyor Number 21000230, HWC Engineering Job Number 2020-051, dated February 3, 2020, and last revised May 21, 2021, more particularly described as follows: COMMENCING at the northeast comer of said Quarter Section, said comer marked by a Harrison Monument per Hamilton County Surveyor's Office Corner Records; thence South 89 degrees 09 minutes 42 seconds West (assumed bearing per survey recorded as Instrument Number 9609611604 in the Office of the Recorder of Hamilton County, Indiana) along the north line of said quarter section a distance of 498.76 feet; thence South 00 degrees 50 minutes 18 seconds East a distance of 25.00 feet to the POINT OF BEGINNING; thence South 00 degrees 00 minutes 00 seconds West a distance of 98.67 feet; thence North 90 degrees 00 minutes 00 seconds West a distance of 260.00 feet; thence North 00 degrees 00 minutes 00 seconds East a distance of 94.87 feet; thence North 89 degrees 09 minutes 42 seconds East a distance of 260.03 feet to the POINT OF BEGINNING, containing 0.578 acres, more or less. M Also including the following: Lots 2601-2606 and 2701-2705 Proposed Lots 2601-2606 and 2701-2705 in Ambleside, being a part of the East Half of the Northwest Quarter of Section 21, Township 18 North, Range 3 East of the Second Principal Meridian, Clay Township, Hamilton County, Indiana, based upon an ALTA/NSPS Land Title Survey prepared by Kristopher K. Eichhom, Professional Surveyor Number 21000230, HWC Engineering Job Number 2020-051, dated February 3, 2020, and last revised May 21, 2021, more particularly described as follows: COMMENCING at the northeast corner of said Quarter Section, said comer marked by a Harrison Monument per Hamilton County Surveyor's Office Corner Records; thence South 89 degrees 09 minutes 42 seconds West (assumed bearing per survey recorded as Instrument Number 9609611604 in the Office of the Recorder of Hamilton County, Indiana) along the north line of said quarter section a distance of 788.79 feet; thence South 00 degrees 50 minutes 18 seconds East a distance of 25.00 feet to the POINT OF BEGINNING; thence South 00 degrees 00 minutes 00 seconds East a distance of 94.43 feet; thence North 90 degrees 00 minutes 00 seconds West a distance of 245.00 feet; thence North 00 degrees 00 minutes 00 seconds East a distance of 79.05 feet; thence North 45 degrees 00 minutes 00 seconds East a distance of 16.92 feet; thence North 89 degrees 09 minutes 42 seconds East a distance of 233.06 feet to the POINT OF BEGINNING, containing 0.519 acres, more or less. Also including the following: Lots 2801-2804 2901-2904 3001-3004 3101-3104 3201-3204 and 3301-3304 Proposed Lots 2801-2804, 2901-2904, 3001-3004, 3101-3104, 3201-3204 and 3301-3304 in Ambleside, being a part of the East Half of the Northwest Quarter of Section 21, Township 18 North, Range 3 East of the Second Principal Meridian, Clay Township, Hamilton County, Indiana, based upon an ALTA/NSPS Land Title Survey prepared by Kristopher K. Eichhorn, Professional Surveyor Number 21000230, HWC Engineering Job Number 2020-051, dated February 3, 2020, and last revised May 21, 2021, more particularly described as follows: COMMENCING at the northeast corner of said Quarter Section, said corner marked by a Harrison Monument per Hamilton County Surveyor's Office Corner Records; thence South 89 degrees 09 minutes 42 seconds West (assumed bearing per survey recorded as Instrument Number 9609611604 in the Office of the Recorder of Hamilton County, Indiana) along the north line of said quarter section a distance of 868.59 feet; thence South 00 degrees 50 minutes 18 seconds East a distance of 162.27 feet to the POINT OF BEGINNING; thence South 00 degrees 00 minutes 00 seconds East a distance of 311.00 feet; thence North 90 degrees 00 minutes 00 seconds West a distance of 30.94 feet to the point of curvature of a curve to the left having a radius of 156.00 feet and subtended by a long chord having a bearing of South 72 degrees 21 minutes 41 seconds West and a chord length of 94.54 feet; thence southwesterly along said curve an arc distance of 96.05 feet to a point of reverse curvature of a curve to the right having a radius of 20.31 feet and subtended by a long chord having a bearing of North 80 degrees 43 minutes 56 seconds West and a chord length of 28.50 feet; thence westerly along said curve an arc distance of 31.59 feet; thence North 35 degrees 18 minutes 09 seconds West a distance of 43.54 feet to the point of curvature of 50 a curve to the right having a radius of 122.00 feet and subtended by a long chord having a bearing of North 17 degrees 39 minutes 05 seconds West and a chord length of 73.99 feet; thence northerly along said curve an arc distance of 75.17 feet; thence North 00 degrees 00 minutes 00 seconds West a distance of 229.02 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 196.76 feet to the POINT OF BEGINNING, containing 1.429 acres, more or less. Also including the following: Lots 3401-3404 3501-3504 3601-3604 3701-3704 3801-3804 and 3901-3904 Proposed Lots 3401-3404, 3501-3504, 3601-3604, 3701-3704, 3801-3804 and 3901-3904 in Ambleside, being a part of the East Half of the Northwest Quarter of Section 21, Township 18 North, Range 3 East of the Second Principal Meridian, Clay Township, Hamilton County, Indiana, based upon an ALTA/NSPS Land Title Survey prepared by Kristopher K. Eichhorn, Professional Surveyor Number 21000230, HWC Engineering Job Number 2020-051, dated February 3, 2020, and last revised May 21, 2021, more particularly described as follows: COMMENCING at the northeast corner of said Quarter Section, said corner marked by a Harrison Monument per Hamilton County Surveyor's Office Corner Records; thence South 89 degrees 09 minutes 42 seconds West (assumed bearing per survey recorded as Instrument Number 9609611604 in the Office of the Recorder of Hamilton County, Indiana) along the north line of said quarter section a distance of 642.61; thence South 00 degrees 50 minutes 18 seconds East a distance of 165.58 feet to the POINT OF BEGINNING; thence South 00 degrees 00 minutes 00 seconds West a distance of 311.00 feet; thence North 90 degrees 00 minutes 00 seconds West a distance of 178.00 feet; thence North 00 degrees 00 minutes 00 seconds East a distance of 311.00 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 178.00 feet to the POINT OF BEGINNING, containing 1.271 acres, more or less. Also including the following: Lots 1301-1304 1401-1404 1501-1504 1601-1604 1701-1704 and 1801-1804 Proposed Lots 1301-1304, 1401-1404, 1501-1504, 1601-1604, 1701-1704 and 1801-1804 in Ambleside, being a part of the East Half of the Northwest Quarter of Section 21, Township 18 North, Range 3 East of the Second Principal Meridian, Clay Township, Hamilton County, Indiana, based upon an ALTA/NSPS Land Title Survey prepared by Kristopher K. Eichhorn, Professional Surveyor Number 21000230, HWC Engineering Job Number 2020-051, dated February 3, 2020, and last revised May 21, 2021, more particularly described as follows: COMMENCING at the northeast corner of said Quarter Section, said corner marked by a Harrison Monument per Hamilton County Surveyor's Office Corner Records; thence South 89 degrees 09 minutes 42 seconds West (assumed bearing per survey recorded as Instrument Number 9609611604 in the Office of the Recorder of Hamilton County, Indiana) along the north line of said quarter section a distance of 413.32 feet; thence South 00 degrees 50 minutes 18 seconds East a distance of 168.94 feet to the POINT OF BEGINNING; thence South 00 degrees 00 minutes 00 seconds East a distance of 311.06 feet; thence South 89 degrees 58 minutes 53 seconds West a distance of 178.00 feet; thence North 00 degrees 00 minutes 00 seconds West a distance of 311.12 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 178.00 feet to the POINT OF BEGINNING, containing 1.271 acres, more or less. 51 Also including the following: Lots 1901-1904 2001-2004 2101-2104 2201-2204 2301-2304 and 2401-2404 Proposed Lots 1901-1904, 2001-2004, 2101-2104, 2201-2204, 2301-2304 and 2401-2404 in Ambleside, being a part of the East Half of the Northwest Quarter of Section 21, Township 18 North, Range 3 East of the Second Principal Meridian, Clay Township, Hamilton County, Indiana, based upon an ALTA/NSPS Land Title Survey prepared by Kristopher K. Eichhorn, Professional Surveyor Number 21000230, HWC Engineering Job Number 2020-051, dated February 3, 2020, and last revised May 21, 2021, more particularly described as follows: COMMENCING at the northeast corner of said Quarter Section, said corner marked by a Harrison Monument per Hamilton County Surveyor's Office Corner Records; thence South 89 degrees 09 minutes 42 seconds West (assumed bearing per survey recorded as Instrument Number 9609611604 in the Office of the Recorder of Hamilton County, Indiana) along the north line of said quarter section a distance of 198.34 feet; thence South 00 degrees 50 minutes 18 seconds East a distance of 172.08 feet to the POINT OF BEGINNING; thence South 00 degrees 00 minutes 00 seconds East a distance of 291.00 feet to the point of curvature of a curve to the right having a radius of 20.00 feet and subtended by a long chord having a bearing of South 44 degrees 59 minutes 27 seconds West and a chord length of 28.28 feet; thence southwesterly along said curve an arc distance of 31.41 feet; thence South 89 degrees 58 minutes 53 seconds West a distance of 158.01 feet; thence North 00 degrees 00 minutes 00 seconds East a distance of 311.05 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 178.00 feet to the POINT OF BEGINNING, containing 1.269 acres, more or less. Excluding from above the following: All Real Estate described in Exhibit A 52