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U) w l7 U] z O O U) rb ro r C 0 z ry H z X O p n H *k C r r o o J H C] n •r F%3 � cD cD z n CD N o #k � C r n r n H cs O roHnr�L� o N C 13 O - t7 0 O O I H r Z r �Z O N rz00 H ?� U to F3 C C � r r7 t7 LTJ N z z H 4 cD O J n n H O ro to N H � z rn L7' r C] a CL a. - 0 cD N 90 W O = Nw O � Z H 0 � c' N` I Nj ' CD W H xcQ ca c�D C4,> w N' U) 3 w 0 M co CD '< .. CD (D D C)0 CD r D CD p o CLCL CD rL a� Q. N � 7 N N •• Z y ~ O Z y 'A o O •• N H d d H H �d n O � H 0 trJ N G) N � C: O til m H eD O --jSO z00 t7 u LA) cQ cD H ro H C C z � r z t7 z 0 tij H l7 U] z O O U) rb ro r C z ry H z O C m CL a. - 0 cD N 90 W O = Nw O � Z H O � c' N` I Nj ' CD W H x co CD C4,> w N' U) 3 w 0 M ca K O: .. 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N W O N H N ;, y iU O O H t7 CD rn trJ O ° N � Oo k-3 CC LTJ ro0 Z N G� W co W ci o ci 0 C O O 00ro y C C r- X 0 r t7 rt m r`b CDD tD W U] cD H co CD CD cici ro LTJ H LIJz H C] t) z H O d H t) ro N n LTJ L=J H O O c� d t7 LA � n r n O° c tD ~ o N Z H z Z O o C o ?� r) C Z O O Oro ro Lo 0 � r royor o ?F z o 0 C) d d C] N z z �01 P -0 W H a o H C C H to In 0 o 4* C a C] tsz ~ o H tD ~ to y o �7 tD n C) � ~ z tD N F] z ,� C z C C7 C C] C C] a Q •° 3 O; fD 90 V 0 9 �. O � r o KtQ tQ tVD K t;:L to (DD � 0) W 0 CDD Q t� O a 'r CL tD 0 r a to 0 O CL N ••z N CO) ( 3 W N H O N H z y iU O O H t7 CD rn trJ O ° N � Oo k-3 CC LTJ ro0 Z N G� W � ci o ci 0 C O O 00ro y C C r- t7 t7 rt r`b CDD tD W U] cD H co ro I-' ro ro LTJ H LIJz H C] t) z H O d ° t) U H H z Z O c� CD CD CD N03 Q •° 3 O; fD 90 Q 0 9 �. 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N � o w O C O Z p K cc co m N; � , CL N v CD w H � m c�D 0 (D Q N O w U) 9 w 0) CDD O: 3 r c CL f o H a Cl) W 3 CD NZ 7 N <D O H (D O N 2i z w o O o � H ro� C n w w H O C -- t7 tzj H o y n° H C C z ° o y z z f-' d t7 C Oro O O o F t7 C z O O N En H d d ro L3 L%' In d d z LTJ n H H H z I CD N o Q C C n W z � ~ N H Cn z CD H o 4 -3 m C n C n CD Hk o N r r n C n ca (D H o N ro H z C C C n a a Q G p W 0 0 v � o w ca 0 V r'r o O w r pr K cc co m cfl O (D ca c�D 0 (D Q 0) CDD o Q. r c CL x o H a Cl) W 3 CDD NZ 7 N <D O H N O N 2i z w o O o � H tij C N 0 �' t7 C z O O H o y ro H C C rC�o�� f-' d t7 C z O O o lz7 1-0 H C id En d d ro L3 In z o H d H z I CD N o Q ( CD N 90 M O � a Q G p W O; �? ns O; v � w ca 0 V r'r o O w r pr m X K CDD cfl O (D ca c�D 0) CDD CDD H r roNnt�r� x o H a O 0 d d 7 'd n O H H rr N 2i z w o O o H H Pd C t7 � �' t7 n° z O O H o y ro H C C rC�o�� f-' t7 C z O O o d 1-0 H C id hh d d ED L3 In ro o H z t) I CD N o *k -_j C C n C n z � ~ N �] z CD H o 4 -3 m C n C n c� H N C C C) a a M _Q 'w O Z p w c' �k Nr (Op O m x ca c�D 0) CDD CDD V 0 r x o r a CD 0 CL (D 7 N C 3 N N z N CD O H H Pd t7 � n° N Q o y � (:,I z z rC�o�� f-' t7 C z O O o d 1-0 H C id hh d d ED L3 In ro z t) H z o G) g N S?� O 7 a M _Q 'w O Z p w c' �k Nr (Op w x;L ca e�D A) CDD 0 V 0 r x n .. ,ph CD 0 CL (D 7 Cl) CD N N Z N O H H O t7 d n° N z O o y � C z z rC�o�� f-' t7 C z O O o d 1-0 H C C t7' d d ED L3 n ro z ry H o H CD H o 4 -3 C C n C n c� H N y z C C n a 0 x;L ca e�D A) CDD 0 0 n r CL CD 0 CL 7 Cl) CD N N Z N O H rb � LTJ N 0 � C d �i ED ro z ry H u� CA CD rt O � a 3 o. 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O o, 'Oy CD CL xco to CDD 1 M co 0 n 03 Z n r a CD 0 O O y C 3 N CL U -) Z N CD Iv co r 4+k lid Wo< v w N trJ � ci C O � N �. of � m x -a O 0 to ca ro ,0* CDD CD tI H z F-3 O - tj u n O z y z z O W C�Zro�y uj r H z 0 0 ro y C C t -A d d � n N z z o y H 4t t7' C C ~ N y z r C n a O xco to CDD M co 0 n n r a CD 0 CL U C 3 N N Z N CD O .. H lid N trJ � ci C t) m tr1 to ca ro tij z tI H z u� o � O R Z o v •-4 CO) 00 ry Z co) 90 O E W Z D v f v O m N 3 �a N O• C=) 0. W O N M CD t2 O CA) N CA CD QPo- o T o VS_ 1' M. a C, V 0 to . ( V 0 0 0 °x 0 0o z 0 xc"0D (0 to K x 0 CL v W 1O 0) m CD N; O, wJ< CCA W CD C)n X m �Q 0 r o Ci r a d M n r a f/1 O 0 C. CD 0o z ro N n Z N N O Z N - d -� H H ro Nnt�t� O H 1 X H O O n O t7 u t4 w N O O N G) H H C, O �4 v r O o w w N t� u C 2i O O �' W t) ro H t-' t-' tij In n d d ro ro z z 1-3 U] d o H H U] U] z n <D N o 4t J C t' n -' L ( ] C H *k ti ti ti a m Hk O J r r C] C n (aN N H z r H O t� u t) n r H H C7 a aCD C. V o. ( V 0 0 0 °x 0 0 0 xc"0D (0 to K x to U3 0) m CD - ' to CD C)n X m r a O Ci r a n r a f/1 O 0 C. N 0o z ro N n Z N N O Z N - d -� N H O O .• O H 1 X C O Po n O z p t4 w N LTJ N G) H t7 C, O 1 '; O v r z o w co t� t) W t) �d tij In co (n In ro ro z z 1-3 U] d o H y C C z n <D N o 4t J C a aCD C. V o. ( a 0 0 0 °x O C O CL v CD U) O 0 O w �, w xc"0D (0 to K �< 1 N. N 1 w., O. y O CD ,y 0) m CD - N r- 0 CD C)n X m r a O Ci r a O 0 C. f/1 C N N 0o z ro N n Z N 0 O O N - d -� = H O n O r� 1 X C O � n O z LTJ t4 w N 0 � N H t7 !2i O 1 '; O v r z o w co t� t) W LIJ 00 En In ro (n In t� ro z d 1-3 U] H o z y C C O n <D N o 4t J C t' n -' L ( ] C H *k ti ti ti r H N z o (D C r H O n u t) n O H H OC O L.) C N 0 O O d d LTJ ,b C] H H � H U1 U1 O H t -' C Lr-' CD O J n C] ~ 0 to CQ N H Z � I C L-1 C) a aCD C. V 0 o, mL' N V 0 0 0 °x O C O CL v CD U) O 0 O w �, w xc"0D (0 to K �< 1 N. N 1 w., O. y O .. ,y 0) m CD `< r- 0 CD C)n X m r a Ci r a O 0 C. f/1 C N N H 3 ro N n Z N R O N - d O •• H H O n O r� 0 z O O � n O z LTJ t4 N 0 � C..,' -i N t7 !2i O O W H; r z o 0 co t� t) LIJ LIJ En In ro (n In t� ro z d 1-3 U] H o z y C C c� C ML aCD C. 0 o, mL' N V 0 0 c °x O C O CL v CD U) O 0 O w �, w (0 to K �< 1 N. N 1 w., O. y O .. ,y CD CD CD r- 0 CDD C)n X m r a o r a CL z f/1 (DD N N H Z ro N n tl] N H O H - d d H H O n O u 0 z O O H C n O z H t4 � Q z F-' N t7 !2i O O W H; r z o 0 co t� d LIJ M En ro ro (n In z ro z d 1-3 U] H o z y C C u� n <D N o 4t J C t' n -' L ( ] C H *k ti ti ti to H N z C r n D CL C.CD o.. =� N V 0 0 c °x W v U-) H � (0 to CD N` ! a w N W CD co r- 0 CDD C)n X m r a o r a CL 3 f/1 (DD N N Z N N Z N H O .. 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O H w ro H n m N 3 O -- U t=J N O � CD W y C C z D w N W ° LA) N tI t2i d x O xl _H trJ V tro x d `�N�zz ro Os tijrb z 3 o d % H r! z H CD <D G] CD QCD 0 0 V 0 o O r Z O w N Xto to WCD .a.: �i N. r. o ' v "o N to co �v N CD (D 0 � 'a 3 r 0 r Q D) O o Z CL N O N N Z O N O H w ro H n m N 3 O -- U LTJ N Q � CD W y C C z D w N W ° LA) N tI t2i U x O xl _H L71 V tro x d `�N�zz ro Os z 3 o d % H r! z H CD <D 4� o H z D H o �k f L-1 C n LC-' n H to roHnt�L� N H H O d d VJ z y n° C z z ° 5 C C oro C N l7 2i O O w to y C C o F-3 0 0 o -j n n H o y C TTz^^ V, C C C) a a 0 0 V 0 o O r Z O w N Xto to WCD .a.: �i N. r. o ' v "o N to co .14 CCA C9 CD (D 0 � 'a 3 r 0 r Q D) O Q CL N N 3 N N Z 0�. N O H H ro H n m m 3 O -- U LTJ N Q � z O W y C C z D z 0 ° LA) N tI t2i U x O xl _H L71 tro d d `�N�zz ro z d H z H U] U] 4� C CD N a 0 V o O r Z O w N x .a.: �i N. r. o ' v "o M to to cis •r # CCA C9 W CD � 'a 3 r 0 r Q D) O e. N N 3 N N Z CD (a O •• H H ro H n m m 3 O -- U 0 N n° � z O W y C ro z D z 0 ° LA) N tI t2i x O x O _H L71 tro d d `�N�zz ro z d H z H U] U] G] o H D H o �k f L-1 C n LC-' n to ~' N H VJ C C n a V o x M to to ID CD 0 0 r Q O e. N N 3 N N Z CD (a O •• H LTJ N G) � C, L71 ro z d H z G] o � O 0,� R m 3 Z _ < 00 N Z n fO O W z D v O m N N � o 0. C) N v m ED CL N w7w, O M w N O N W W C to CCD a xca 0 O;, cfl N S?p W O 7 Z 0 O :. is C C O ws CD in �D W n O CD r O 7 O D Q' Q y N �„r N (D H M to C. w; U) W 0 N � Cl x �y d c 7 r n r a x 0 O C. N 001 t`CD CD C 7 N Z LTJ H O in n - LTJ 0 LTJ t7 z 0 S F�d-JnOzz 0 d U N 0 C z O O 3 w d n 0 H z 00 H o z H z > z c� CD Nk o --3 C C n C n N C ~ N H 0 0 O id ro z co C C co C C n D D CL CL xca 0 cQ O CDD 0 0 O tc ca .14 CD in �D W n O CD r O 7 O D Q' Q y N N N ' v N' m M to w CrJ G] w 0 N � Cl x O 'a O,r n r a x m O C. N 001 d tD C 7 N Z LTJ O Z in CCD O to H O ro d U H O n - z d 3 w d n 0 H z 00 H y C z O z > z c� C cD CD N D CL CL 0 O; s CD 0 0 O tc 0 � C. Z w xto to tC t�D N N ' v N' m M to w N w 0 x O 'a O,r n r a x m O C. N 001 M tD C 7 N Z ,V O Z N CCD O H H O d U H O n - tz d 3 w N n 0 `A z 00 H y C O z > z v C o x O O w; N C r z 0 0 O id ro H C C co U] ro x z d H U] H 3 r o z H c� o H C 0 N o �# � C n r n (1) h o *k � t ' C n LC-' n ca N o ro z z to C n C z H n z z D Q 0 0 CD CL 0 O tc 3 CL Z xto to tC t�D ms's N CDs, N' m M to 0; r N w 0 x O D O n r a CD O C. N 001 M f/1 C 7 N Z ,V O Z N CCD O H H O d U Pd n O H N ` 3 w N � `A ci H O v C H H x O O w; C d U) id co U] ro x z d H U] H 3 r o z H c� D Q 0 0,. CD CL 0 O tc 3 CL Z x to cC W ms's N CDs, N' m M to 0; r N w 0 x O D O n r CL CD O C. M CD W Z N ,V O Z N CCD s H O O d U � n O H N ` 3 w N G] N co H O v C H H x O O w; C d U) ;d to 1 ro x x d H U] O 3 r o z H Q C 0 N o �# � C n r n to O ~ N H .. .. 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M �D A) CD (1) M 7! a 0 r cD O O a d Cl) H 3 O d t7 n O O z O H•• H Z z 0 � LTJ LA) W ?F z� t7 �°xx z O O 4L ro H C C x U r7 �b n d co In H U] U] o y z d H CD o - n n ca O H o N ro H Z r r n a O Kcc ca CDD A) CD (1) a 0 r cD O O a d Cl) (D 3 y Z y O H•• � LTJ N � �b d co In ro z d H z v Z O 0 0 •� 0 Z 0 n �< C O N Z ca ^> Qo O 3 co Z a O m � 1 N � O n. C) N a) m (Q Q CD N � O n CA) N CA CD coO k E a M Q CD N O p W Z O p c C W N N v � rn � w V 0 r 0 H O OD kr" 0 J n D) is MM O H -- d d rd n O H H ro0 d r z 0 0 C H d d H U] U1 H 4k LL-' t7' r o ---j H o H z co C C n O O I to CQ to U 0 CD � 0 0 a CL CL 3 N O N N rP D CL N o . �S � H v' WN p O cn N Z H Z O O N fir, l t,. i0 0 N X W W x w> V 0 03 CNN W CD M to to n ° 3 0 to %< C x x x 'r o r a CD CD m O. ° r CL CL CO) 7 N N ( Z N N N O H H O O d d CD iu n OIA H H N G] � ci O O J O n n ~ 0 C H x x m I'd H � LO-' d Z L7] b tri C n d H H ^z 4, > as ^z^ 4J n eD Hk o J t ' C n C n c2) � H o N to H C C n D DCL Q' ' O N o . �S � H O W Z O O N W p 0 N X W W x w> V 0 03 0 o CD M to to n O W to %< C H x x C7 o r a co O m O. ° r CL CL CO) 7 N N ( Z N N N O N H O rro CD L1 H L=J N G] � ci CD O J n n ~ U3 m N d d Z L7] b tri C n d H H ^z 4, CD N DCL Q' ' O N o . �S � H O W Z js O N W p 0 N C) N V 0 W W x w> V 0 03 0 o CD o n f H ro N n M M H O � U 0 n O 0 z y Z z 0 03 N o CD o O W to %< C H x x C7 a o 1.0y ° r o CL 3 CA ( N N Z N Nom. 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C) N vm to Q (D w� O -h CA) N x O z v r 0 m x m z FIJ H n � H � C) `D z O N W H � m p x CD N �D H m G] W H H H O o m m z � � G] m eij m o �d x x z n O O z m m bi O O �L tij Ln rd N �$ Ul N 'fJ ;TJ z z (a cc CD 0 0 0 I �D O Z O .0 0 a CL M CD N N N �P C= d m ro m z d H z Q C U) N go = W Z O p C p w N H v � 0 W 3 p f' 5. Le O.: " t� X O CD n n o ~ - d d ;d n O H H F3 �Z ro r ° x x z O O ro H C C H U] U] H 4t L-1 r r o � n n 0 td ~ N F] z C C n O O cc ca ca c� 0 (D 0 0 Q. O �D 3 Z O i 0 m co cn ro m z d H z c� C CD to Q Q O.' c a, M O c 7 C v Z p H 0)s` 0 N �N N O " fA x to O 0 rr CD X 'G CD O 7 CD 0 r- CL � o H CL ro n m m H O — 0 t) N ;o n O H H o W t -A > 0 rd °xx m N Ca" y r U-) ro ° Ll U tj �d m in ro m H Cl) U] o H H 0 z CD N o *k � r r n C n co �' NCD �A z cn C C n "O 0 o 3 Z o � N �o WN Z CD �O ic v z O m � N � o 0. v w� C) N ,P v m cQ Q (D 7 N 0� 0 W N CD O h 0 0 x to CD (D 0 r- CL � o CL 7 CA ( y N Z N O .. H rd m N Ca" U �d m in ro m z d H z "O 0 o 3 Z o � N �o WN Z CD �O ic v z O m � N � o 0. v w� C) N ,P v m cQ Q (D 7 N 0� 0 W N CD O h Doc No T4895131 Certified, filed and/or recorded on 10/20/113:38 PM Office of the Registrar of Titles Hennepin County, Minnesota Michael H. Cunniff, Registrar of Titles Jill L. Alverson, County Auditor and Treasurer Deputy 55 Pkg ID 744229 Doc Name: CIC Declaration and Plat Plat Fee • $56.00 Exchange Certificate Fee $40.00 Attested Copy or Duplicate $2.00 Original Document Total $98.00 Existing Certs New Certs 1341987 1342091 Y Tits �I�rCVAtt�.T�o� C11, OAR� This cover sheet is now a permanent part of the recorded document. ORIGINAL A i( A 10 MOR TAUS PAID 'TAXPAYER SERVICES TRANSFER ENTERED OCT 2 0 2011 (Above Space Reserved for Recording Data) COMMON INTEREST COMMUNITY NO. 1963 Planned Community THE CREEK DECLARATION This Dec arqtion is made in the County of Hennepin, State of Minnesota, on this 11* day of UUOber , 2011, by Edina Holdings LLC, a Delaware limited liability company (the "Declarant"), pursuant to the provisions of Minnesota Statutes Chapter 515B, known as the Minnesota Common Interest Ownership Act (the "Act"), for the purpose of creating The Creek as a planned community under the Act. WHEREAS, Declarant is the owner of certain real property located in Hennepin County, Minnesota, legally described in Exhibit B attached hereto, and Declarant desires to submit said real property and all improvements thereon (collectively the "Property") to the Act as a planned community, and WHEREAS, Declarant desires to establish on the Property a plan for a permanent residential community to be owned, occupied and operated for the use, health, safety and welfare of its resident Owners and Occupants (as hereinafter defined), and for the purpose of preserving the value, the quality and the character of the Property, and WHEREAS, Declarant desires and intends to establish The Creek as a senior residential community providing housing for older persons, pursuant to Title 42 of the United States Code, Section 3607(b)(2)(C) known as the %Iousing for Older Persons Act of 1995 ("HOPA") and Title 42 of the United States Code, Sections 3601-3619, known as the Fair Housing Act (the "Fair Housing Act"), and to operate in compliance with HOPA, the Fair Housing Act and Minnesota Statutes, Chapter 363 ("MHRA"), and WHEREAS, the Property (i) is not subject to an ordinance referred to in Section 515B.1-106 of the Act, governing conversions to common interest ownership; (ii) is not subject to a master association as defined in the Act; (iii) does include shoreland as defined in 109537.8 Minnesota Statutes Section 103F.205, and may be subject to county, township or municipal ordinances or rules affecting the development or use of the shoreland area; and (iv) shall not be considered conversion property as that term is used in Sections 515B.1-103(12) and 51513.4-111 of the Act pursuant to the terms of the Order, as hereinafter defined. THEREFORE, Declarant subjects the Property to this Declaration under the name "The Creek," consisting of the Units referred to in Section 2 and the Common Elements described in Section 3, declaring that this Declaration shall constitute covenants to run with the Property, and that the Property shall be owned, used, occupied and conveyed subject to the covenants, restrictions, easements, charges and liens set forth herein, all of which shall be binding upon all persons or entities owning or acquiring any right, title or interest therein, and their heirs, personal representatives, successors and assigns. SECTION 1 DEFINITIONS The following words when used in the Governing Documents shall have the following meanings (unless the context indicates otherwise): I.I. "Act" means the Minnesota Common Interest Ownership Act, Minnesota Statutes Chapter 515B, as amended. 1.2. "Assessments" means and refers to all assessments levied by the Association pursuant to Section 6. 1.3. "Association" means The Creek Homeowners Association, a nonprofit corporation created pursuant to Minnesota Statutes Chapter 317A and Section 51513.3-101 of the Act, whose members consist of all Owners. 1.4. "Board" means the Board of Directors of the Association as provided for in the Bylaws. 1.5. "Building" means the structure which is a part of the Property and contains the Units, and portions of the Common Elements, Limited Common Elements and related Improvements. 1.6. `Bylaws" means the Bylaws governing the operation of the Association, as amended from time to time. 1.7. "City" means the City of Edina, Minnesota. 1.8. "Common Elements" means all parts of the Property including all Improvements thereto, except the Units, and are legally described as Common Elements, Common Interest Community No. 1963, Hennepin County, Minnesota. The Common Elements are owned by the Association for the benefit of the Owners and Occupants. 109537.8 1.9. "Common Expenses" means all expenditures made or liabilities incurred by or on behalf of the Association and incident to its operation, including Assessments and items otherwise identified as Common Expenses in this Declaration or the Bylaws. 1.10. "Declarant Control Period" means the time period during which Declarant has the exclusive right to appoint certain members of the Board, as described in Section 15.4. 1.11. "Garage" means the underground parking garage located on the lowest level or levels of the Building. 1.12. "Governing Documents" means this Declaration, and the Articles of Incorporation and Bylaws of the Association, as amended from time to time, all of which shall govern the use and operation of the Property. 1.13. "Improvement" means any modification, improvement, or replacement of any type, temporary or permanent, structural, aesthetic or otherwise including, but not limited to, any structure, building, addition, deck, patio, fence, wall, enclosure, window, exterior door, antenna or other type of sending or receiving apparatus, sign, flag, display, decoration, color change, shrubbery, material topographical or landscaping change. 1.14. "Limited Common Elements" means a portion of the Common Elements allocated by the Declaration or by operation of Section 51513.2-109(c) or (d) of the Act for the exclusive use of one or more but fewer than all of the Units. 1.15. "Member" means all Persons who are members of the Association by reason of being Owners as defined in this Declaration. The words "Owner" and "Member" may be used interchangeably in the Governing Documents. 1.16. "Mortgagee" means any Person owning a mortgage on a Unit, which mortgage is first in priority upon foreclosure to all other mortgages that encumber such Unit. 1.17. "Occupant" means any person or persons, other than an Owner, in possession of or residing in a Unit. 1.18. "Order" means that certain Order for Judgment and Decree of Foreclosure recorded against the Property on February 10, 2011, as Document No. 9623386 in the office of the Hennepin County Recorder and as Document No. 4833852 in the office of the Hennepin County Registrar of Titles. 1.19. "Owner" means a Person who owns a Unit, but excluding contract for deed vendors, mortgagees, holders of reversionary or remainder interests and other secured parties within the meaning of the Act. The term "Owner" includes contract for deed vendees and holders of a life estate. 109537.8 1.20. "Person" means a natural individual, corporation, limited liability company, partnership, limited liability partnership, trustee, or other legal entity capable of holding title to real property. 1.21. "Plat" means the recorded plat depicting the Property pursuant to the requirements of Section 51513.2-110(c) of the Act, including any amended or supplemental Plat recorded from time to time in accordance with the Act. 1.22. "Property" means all of the real property subjected to this Declaration, now or in the future, including the Units and all other structures and other Improvements located thereon. The Property is legally described in Exhibit B attached hereto. 1.23. "Rules and Regulations" means the Rules and Regulations of the Association as approved from time to time pursuant to Section 5.6. 1.24. "Special Declarant Rights" means those exclusive rights reserved to Declarant as described in Section 15. 1.25. "Unit" means a part of the Property within the Building, including one or more rooms or enclosed spaces, occupying part of one floor, designed and intended for separate ownership and use, as described in Section 2 and shown on the Plat. Any terms used in the Governing Documents, and defined in the Act and not in this Section 1, shall have the meaning set forth in the Act. References to Section numbers refer to the Sections of this Declaration unless otherwise indicated. References to the singular may refer to the plural, and conversely, depending upon context. SECTION 2 DESCRIPTION OF UNITS AND BOUNDARIES, AND RELATED EASEMENTS AND RESTRICTIONS 2.1. Units. There are 126 Units. All Units are restricted exclusively to residential use. Each Unit constitutes a separate parcel of real estate. The Unit identifiers and locations of the Units are as shown on the Plat, which is incorporated herein by reference. A schedule of Units is set forth on Exhibit A attached hereto. 2.2. Unit Boundaries. The boundaries of each Unit shall be the interior unfinished surfaces of its perimeter walls, floors and ceilings. Wallpaper, paneling, tiles and other finishing materials adhered to the interior of the Unit boundaries shall be a part of the Unit; provided, that any load bearing portions of any interior or perimeter walls, columns, ceilings or floors, and any common utility lines or other common Building systems, facilities or equipment located in or passing through a Unit, shall be Common Elements. The boundaries of each Unit shall also extend along the inside unfinished surfaces of its perimeter doors and windows, and their frames, and said perimeter doors, windows and frames, and their hardware, shall be Limited Common Elements allocated to such Unit. Subject to this Section 2.2 and Section 3, all fixtures and Improvements located wholly within the boundaries of a Unit are a part of the Unit. 109537,8 4 2.3. Appurtenant Easements. The Units shall be subject to and benefited by the easements described in Section 11. SECTION 3 COMMON ELEMENTS, LIMITED COMMON ELEMENTS AND OTHER PROPERTY 3.1. Common Elements. The Common Elements and their characteristics are as follows: 3.1.1. All of the Property not included within the Unit boundaries and any load bearing portions of any interior or perimeter walls, columns, ceilings or floors; and any common utility lines or other common Building systems, facilities or equipment located in or passing through a Unit shall be Common Elements. The Common Elements include, but are not limited to, those parts of the Property designated as Common Elements under this Section 3, on the Plat or in the Act. The Common Elements are owned by the Association for the benefit of the Owners and Occupants. 3.1.2. The Common Elements shall be subject to (i) easements and restrictions as described in this Declaration, the Plat and any other recorded instrument; (ii) the rights of Owners and Occupants in Limited Common Elements allocated to their respective Units; and (iii) the right of the Association to establish reasonable Rules and Regulations governing the use of the Property. 3.2. Limited Common Elements. The Limited Common Elements are those parts of the Common Elements reserved for the exclusive use of the Owners and Occupants of the Units to which they are allocated. The rights to the use and enjoyment of the Limited Common Elements are automatically conveyed with the conveyance of such Units. The Limited Common Elements are described and allocated to the Units, as follows: 3.2.1. Those items or areas designated as Limited Common Elements on the Plat or by the Act are allocated to the Units indicated thereon or therein. 3.2.2. Improvements, if any, such as decks, patios, porches, balconies, terraces, shutters, awnings, perimeter windows and doors, and their frames, doorsteps, stoops, window boxes, and chimneys constructed as part of the original construction to serve a single Unit or Units, and replacements and modifications thereof authorized pursuant to Section 7.11, if located wholly or partially outside the Unit boundaries, are allocated exclusively to the Unit or Units which they serve. 3.2.3. Chutes, flues, ducts, pipes, wires, conduit or other utility installations, bearing walls, bearing columns, or any other Improvements or fixtures lying wholly or partially outside the Unit boundaries, and serving only that Unit or Units, are allocated to the Unit or Units they serve. Any portion of such installations serving or affecting the function of the Common Elements is a part of the Common Elements. 109537.8 3.2.4. Heating, ventilating or air conditioning equipment serving only a certain Unit or Units, and located wholly or partially outside the Unit boundaries, are allocated to the Unit or Units served by such equipment. 3.3. Garage Stalls. The Garage includes Common Element vehicle parking stalls (collectively the "Stalls" or individually a "Stall"). The Stalls shall be licensed to the Owners and/or the Association, subject to the terms and conditions set forth in this Section 3.3, and following the initial licensing of each Stall by the Declarant, the operation and transfer of the Stalls shall be administered by the Association in accordance with this Section 3.3. The following conditions and restrictions shall govern the licensing, use and transfer of the Stalls. 3.3.1. The initial grant of Stall licenses shall be made in accordance with this Section 3.3.1. Declarant shall have the authority to include the grant of an exclusive license to use one or more previously unlicensed Stalls to an Owner apart from or in connection with the sale or other conveyance of a Unit to such Owner. Declarant shall, at the time the license is granted, file with the Association a Stall license certificate executed by Declarant. The Stall license certificate shall, at a minimum, identify the licensed Stall, the unit identifier of the Unit to which the Stall license is appurtenant, and a reference to this Section 3.3. Declarant may require the onetime payment by an Owner to Declarant of a consideration for the grant of one or more Stall licenses to such Owner (except for those granted pursuant to the Order). The rights of Declarant under this Section 3.3.1 shall terminate at the earlier of (i) the conveyance of all Units to Persons other than a Declarant or (ii) ten years after the recording of this Declaration. Any Stalls remaining unlicensed after the termination of Declarant's rights under this Section 3.3 shall be deemed to be licensed to the Association. 3.3.2. Upon and following the grant of a Stall license to an Owner, the Stall license shall be deemed appurtenant to such Owner's Unit and no interest in the Stall license may be held or transferred separate from such Unit, except as provided in Section 3.3.3. Neither Declarant nor the Association shall have the right or authority to unilaterally transfer any Stall license assigned to an Owner and all Stall license transfers shall be made only in accordance with Section 3.3.3. 3.3.3. A Stall license shall remain with the Unit to which it is appurtenant until the license is transferred in accordance with this Section 3.3.3. Except as otherwise provided herein, a Stall license may be transferred to another Owner, but only by first delivering to the Association (i) a written transfer certificate, in form approved by the Association, signed by the transferor and transferee, and (ii) all prior Stall license certificates, and copies thereof, issued with respect to the Stall in the possession of the transferor. The Association shall review the proposed transfer certificate for compliance with this Section 3.3.3, and if the transfer complies, the Association shall transfer the license on its records to the transferee Owner and the license shall thereafter be deemed appurtenant to such Owner's Unit. In the absence of a properly executed transfer certificate to the contrary, a license appurtenant to a Unit at the time of such Unit's conveyance shall be automatically transferred to the new Owner with the conveyance of title to such Unit. 109537.8 6 3.3.4. The Stall license certificates and transfer certificates shall not be recorded. The Association shall maintain records including the originals or copies of the Stall license certificates and any transfer certificates made in accordance with the terms of Section 3.3.3, the Units to which the Stall licenses are appurtenant, and the names of the Owners of such Units. A copy of the Stall license certificate shall be delivered by the Association to the Owner of the applicable Unit upon the Owner's request. 3.3.5. Owners may rent or allow the use of their licensed Stall to or by other Owners and Occupants. The lease or other use right shall be in written form, and shall terminate when the lessor, lessee or other user is no longer an Owner or Occupant, regardless of the terms of any agreement to the contrary. The Owner shall give the Association advance written notice of any lease or use agreement with respect to such Owner's Stall, and shall provide a copy of the lease or use agreement to the Association upon its request. The Association may hold, convey and transfer the license to, rent, or permit guest or handicap parking within a Stall assigned to it. 3.3.6. The interest of a secured party holding a lien on a Unit includes the license to any Stall appurtenant to such Unit at the time of foreclosure of the secured party's lien; provided that, unless the secured party has given written notice to the Association of a contrary agreement with the Owner of the Unit, the secured party's consent to the transfer of a Stall license prior to the commencement of a foreclosure action shall not be required if at least one Stall license remains appurtenant to the Unit. 3.3.7. The use of the Stalls and the Garage, and the size and types of cars and other vehicles which may be kept in the Garage, are subject to the restrictions set forth in this Declaration and the Rules and Regulations approved from time to time by the Board. The Association shall apply for and maintain any permits required for the Garage. 3.3.8. Any license, lease, rental, use, assignment, transfer or purported transfer of any interest in a Stall or a Stall license in violation of this Section 3.3 shall be void. 3.4. Storaize Lockers. The Building includes Common Element storage lockers (collectively the "Storage Lockers" or individually a "Storage Locker") which may be licensed and assigned to certain Owners and used for the storage of personal property. The Storage Lockers shall be licensed to the Owners and/or the Association, subject to the terms and conditions set forth in this Section 3.4, and following the initial licensing of each Storage Locker by the Declarant, the operation and transfer of the Storage Lockers shall be administered by the Association in accordance with this Section 3.4. The following conditions and restrictions shall govern the licensing, use and transfer of the Storage Lockers. 3.4.1. The initial grant of Storage Locker licenses shall be made in accordance with this Section 3.4.1. Declarant shall have the authority to include the grant of an exclusive license to use one or more previously unlicensed Storage Lockers to an Owner apart from or in connection with the sale or other conveyance of a Unit to such Owner. Declarant shall, at the time the license is granted, file with the Association a Storage Locker license certificate executed by Declarant. The Storage Locker license certificate shall, at a minimum, identify the licensed Storage Locker, the unit identifier of the Unit to which the Storage Locker license is appurtenant, and a reference to this Section 3.4. 109537.8 7 Declarant may require the onetime payment by an Owner to Declarant of a consideration for the grant of one or more Storage Locker licenses to such Owner (except for those granted pursuant to the Order). The rights of Declarant under this Section 3.4 shall terminate at the earlier of (i) the conveyance of all Units to Persons other than a Declarant or (ii) ten years after the recording of this Declaration. Any Storage Lockers remaining unlicensed after the termination of Declarant's rights under this Section 3.4.1 shall be deemed to be licensed to the Association. 3.4.2. Upon and following the initial grant of a Storage Locker license to an Owner, the Storage Locker license shall be deemed appurtenant to such Owner's Unit and no interest in the Storage Locker license may be held or transferred separate from such Unit, except as provided in Section 3.4.3. Neither Declarant nor the Association shall have the right or authority to unilaterally transfer any Storage Locker license assigned to an Owner and all Storage Locker license transfers shall be made only in accordance with Section 3.4.3. 3.4.3. A Storage Locker license shall remain with the Unit to which it is appurtenant until the license is transferred in accordance with this Section 3.4.3. Except as otherwise provided herein, a Storage Locker license may be transferred to another Owner, but only by first delivering to the Association (i) a written transfer certificate, in form approved by the Association, signed by the transferor and transferee, and (ii) all prior Storage Locker license certificates, and copies thereof, issued with respect to the Storage Locker in the possession of the transferor. The Association shall review the proposed transfer certificate for compliance with this Section 3.4.3, and if the transfer complies, the Association shall transfer the license on its records to the transferee Owner and the license shall thereafter be deemed appurtenant to such Owner's Unit. In the absence of a properly executed transfer certificate to the contrary, a license appurtenant to a Unit at the time of such Unit's conveyance shall be automatically transferred to the new Owner with the conveyance of title to such Unit. 3.4.4. The Storage Locker license certificates and transfer certificates shall not be recorded. The Association shall maintain records including the originals or copies of the Storage Locker license certificates and any transfer certificates made in accordance with the terms of Section 3.4.3, the Units to which the Storage Locker licenses are appurtenant, and the names of the Owners of such Units. A copy of the Storage Locker license certificate shall be delivered by the Association to the Owner of the applicable Unit upon the Owner's request. 3.4.5. Owners may rent or allow the use of their licensed Storage Locker to or by other Owners and Occupants. The lease or other use right shall be in written form, and shall terminate when the lessor, lessee or other user is no longer an Owner or Occupant, regardless of the terms of any agreement to the contrary. The Owner shall give the Association advance written notice of any lease or use agreement with respect to such Owner's Storage Locker, and shall provide a copy of the lease or use agreement to the Association upon its request. The Association may hold, convey and transfer the license to, or rent a Storage Locker assigned to it. 109537.8 3.4.6. The interest of a secured party holding a lien on a Unit includes the license to any Storage Locker which is appurtenant to such Unit at the time of foreclosure of the secured party's lien; provided that, unless the secured party has given written notice to the Association of a contrary agreement with the Owner of the Unit, the secured party's consent to the transfer of a Storage Locker license prior to the commencement of a foreclosure action shall not be required. 3.4.7. The use of the Storage Lockers, and the size and types of materials which may be kept in the Storage Lockers, are subject to the restrictions set forth in this Declaration and the Rules and Regulations as approved from time to time by the Board. 3.4.8. Any license, lease, rental, use, assignment, transfer or purported transfer of any interest in a Storage Locker or a Storage Locker license in violation of this Section 3.4 shall be void. 3.5. Annexation of Other Property. Real property may be added to the common interest community as Common Elements, and subjected to this Declaration, in accordance with Section 515B.2-125 of the Act. SECTION 4 ASSOCIATION MEMBERSHIP: RIGHTS, OBLIGATIONS AND RESTRICTIONS Membership in the Association, and the allocation to each Unit of a portion of the votes in the Association, and a portion of the Common Expenses, shall be governed by the following provisions: 4.1. Membership. Each Owner shall be a Member solely by reason of owning a Unit, and the membership shall be transferred with the conveyance of the Owner's interest in the Unit. An Owner's membership shall terminate when the Owner's ownership terminates. When more than one Person is an Owner of a Unit, all such Persons shall be Members, but multiple ownership of a Unit shall not change the voting rights allocated to such Unit nor authorize the division of the voting rights. 4.2. Voting and Common Expenses. Each Unit is allocated one vote. Subject to Section 6, Common Expense obligations are allocated among the Units according to a formula based upon the area of each Unit relative to the aggregate area of all Units, as shown by the percentage interests set forth in Exhibit A attached hereto. 4.3. Appurtenant Rights and Obligations. The ownership of a Unit shall include the voting rights and Common Expense obligations described in Section 4.2. Said rights and obligations, and the title to the Units, shall not be separated or conveyed separately, and any conveyance, encumbrance, judicial sale or other transfer of any allocated interest in a Unit, separate from the title to the Unit shall be void. The allocation of the rights and obligations described in this Section 4.3 may not be changed, except in accordance with the Governing Documents and the Act. 109537.8 9 4.4. Authority to Vote. The Owner, or some natural person designated to act as proxy on behalf of the Owner, may cast the vote allocated to such Unit at meetings of the Association. All proxies shall be granted by an Owner only to another Owner, except that proxies granted by Declarant may be granted to a person who is not an Owner. If there are multiple Owners of a Unit, only the Owner or other person designated pursuant to the provisions of the Bylaws may cast such vote. The voting rights of Owners are more fully described in Section 3 of the Bylaws. 4.5. Age Restrictions. It is intended that The Creek provide housing for older persons in compliance in all respects with the letter and spirit of HOPA, the Fair Housing Act and MHRA. Accordingly, the following restrictions shall apply to membership in the Association and the ownership, occupancy and sale of the Units. 4.5.1. On and after the date of recording of this Declaration, at least 80% of the occupied Units must be occupied by one or more natural persons age 55 or older, alone or together with one or more persons between the ages of 44 and 55. Unless otherwise required by law, no person under age 45 may occupy a Unit at any time, except (i) as a temporary guest where the person's cumulative guest occupancy does not exceed a total of thirty days during any twelve month period or any longer period authorized in writing by the Board, or (ii) as a personal care assistant to a member of an otherwise qualifying household. No person under the age of 45 occupying a Unit as a personal care assistant for a member of that Unit's household shall continue to occupy the Unit following the termination of occupancy by the person receiving the personal care. An occupied Unit as used in this Section 4.5 means (i) a Unit actually occupied by a person or persons as a full or part-time permanent residence (except a Unit occupied by a community caretaker), and (ii) any temporarily vacant Unit which a person has occupied as a full or part-time permanent residence at some time during the prior twelve months and intends to return and occupy as such. 4.5.2. The Board shall adopt, implement, enforce and adhere to policies and procedures that are consistent with the letter and spirit of this Section 4.5 and HOPA, the Fair Housing Act and MHRA, and demonstrate the intent to qualify as a community providing housing for older persons, pursuant to Title 42 of the United States Code, Section 3607(b)(2)(C), including but not limited to: (i) describing the common interest community as housing for older persons or an age 55 or older community to prospective Owners and Occupants of Units; (ii) posting information in the Common Elements consistent with the policies (if practicable), (iii) approving Rules and Regulations consistent with the policies; (iv) requiring all leases to contain provisions with respect to the policies; (v) developing and implementing age screening and verification procedures consistent with the policies; (vi) requiring statements in Unit purchase agreements and resale disclosure documents with respect to the age restrictions; and (vii) providing information with respect to the age restrictions to real estate agents and other persons dealing in the sale, leasing or financing of Units. The Association and the Owners and Occupants of Units shall otherwise comply with the rules relating to verification of age and/or occupancy issued by the Department of Housing and Urban Development as contemplated by Title 42 of the United States Code, Section 3607(b)(2)(C)(iii). 109537.8 10 SECTION 5 ADMINISTRATION The administration and operation of the Association and the Property, including but not limited to the acts required of the Association, shall be governed by the following provisions: 5.1. General. The operation and administration of the Association and the Property shall be governed by the Governing Documents, the Rules and Regulations, and the Act. The Association shall be responsible for the operation and management of the Property. The Association shall have all powers described in the Governing Documents, the Act and the statute under which the Association is incorporated. All power and authority of the Association shall be vested in the Board, unless action or approval by the individual Owners is specifically required by the Governing Documents or the Act. All references to the Association shall mean the Association acting through the Board unless specifically stated to the contrary. 5.2. Operational Puicposes. The Association shall operate and manage the Property for the purposes of (i) administering and enforcing the covenants, restrictions, easements, charges and liens set forth in the Governing Documents and the Rules and Regulations; (ii) maintaining, repairing and replacing those portions of the Property and any other property for which it is responsible; and (iii) preserving the value and the architectural character of the Property. 5.3. Binding Effect of Actions. All agreements and determinations made by the Association in accordance with the powers and voting rights established by the Governing Documents or the Act shall be binding upon all Owners and Occupants, and their lessees, invitees, heirs, personal representatives, successors and assigns, and all secured parties as defined in the Act. 5.4. Bylaws. The Association shall have Bylaws. The Bylaws shall govern the operation and administration of the Association, and shall be binding on all Owners and Occupants. 5.5. Management. The Board shall delegate to a professional manager or managing agent the management duties imposed upon the Association's officers and directors by the Governing Documents and the Act. However, such delegation shall not relieve the officers and directors of the ultimate responsibility for the performance of their duties as prescribed by the Governing Documents and by law. 5.6. Rules and Re ulations. The Board shall have authority to approve and implement such reasonable Rules and Regulations as it deems necessary from time to time for the purpose of operating and administering the affairs of the Association and regulating the use of the Property; provided that the Rules and Regulations shall not be inconsistent with the Governing Documents or the Act, and the Board shall otherwise exercise its authority hereunder in a fair and equitable manner with respect to all Owners. The inclusion in other parts of the Governing Documents of authority to approve Rules and Regulations shall be deemed to be in furtherance, and not in limitation, of the authority granted by this Section 5.6. Notwithstanding the foregoing, new or amended Rules and Regulations shall be effective only after (i) the Board receives the prior written approval of the Declarant if Declarant then owns a Unit, and (ii) reasonable notice thereof has been given to the Owners. 109537.8 11 5.7. Association Assets; Surplus Funds. All funds and real or personal property acquired by the Association shall be held and used for the benefit of the Owners for the purposes stated in the Governing Documents. Surplus funds remaining after payment of or provision for Common Expenses and reserves shall be added to reserves. 5.8. Resale Disclosure Certificates. Pursuant to Section 51513.4-107 of the Act, in the event of a resale of a Unit by an Owner other than Declarant, that Owner shall furnish to the purchaser a resale disclosure certificate containing the information required by Section 5158.4-107(b) of the Act. Pursuant to Section 515B.4 -107(d) of the Act, the Association shall, within ten days after a request by an Owner or the Owner's authorized representative, furnish the resale disclosure certificate. The Association may charge a reasonable fee for furnishing the resale disclosure certificate and any documents related thereto. SECTION 6 ASSESSMENTS 6.1. General. The Board, on behalf of the Association shall approve an annual budget of Common Expenses at or prior to the conveyance of the first Unit to an Owner other than Declarant and annually thereafter. The annual budget shall include all customary and necessary operating expenses and replacement reserves for the Property consistent with the Act and Section 6.5. If an Assessment has not been levied, Declarant shall pay all Common Expenses, including the payment of the replacement reserve component of the Common Expenses for all Units in accordance with Section 515B.3 -115(b) of the Act. If an Assessment has been levied, all Owners, including Declarant, shall pay the Assessments levied against their Units. Assessments shall include annual Assessments under Section 6.2, and may include special Assessments under Section 6.3 and limited Assessments under Section 6.4. Annual and special Assessments shall be allocated among the Units in accordance with the allocation formula set forth in Section 4.2. Limited Assessments under Section 6.4 shall be allocated to Units as set forth in that Section. 6.2. Annual Assessments. Each annual Assessment shall cover all of the anticipated Common Expenses of the Association for that year which are to be shared by all Units in accordance with the allocation formula set forth in Section 4.2. Annual Assessments shall be payable in equal monthly installments, as established by the Board. Annual Assessments shall provide, among other things, for an adequate reserve fund for the replacement of the Common Elements and those parts of the Units (if any) for which the Association is responsible and which are not funded by limited Assessments pursuant to Section 6.4. 6.3. SWcial Assessments. In addition to annual Assessments, and subject to the limitations set forth hereafter, the Board may levy in any Assessment year a special Assessment against all Units in accordance with the allocation formula set forth in Section 4.2, and for the purposes described in this Declaration. Special Assessments may be levied only to (i) cover expenditures of an emergency nature; (ii) replenish underfunded replacement reserves; (iii) cover unbudgeted capital expenditures or operating expenses; or (iv) replace certain components of the common interest community referred to in Section 515B.3 -114(a) of the Act, subject to approval in accordance with that Section of the Act and Section 6.5.5. Notwithstanding the foregoing, any special Assessment levied, in whole or in part, for the purpose described in item (ii) above shall be subject to approval by the vote of a majority of the Owners other than Declarant or its 109537.8 12 affiliates voting, in person or by proxy, at a meeting called for that purpose, or voting by ballot in accordance with the Bylaws, during the Declarant Control Period. A special Assessment may be payable in more than one year and in more than one installment. 6.4. Limited- Assessments. In addition to annual Assessments and special Assessments, the Board may levy and allocate limited Assessments among only one or more, but not all, Units in accordance with the following requirements and procedures: 6.4.1. Any Common Expense associated with the maintenance, repair, or replacement of a Limited Common Element shall be assessed exclusively against the Unit or Units to which that Limited Common Element is allocated equally, in proportion to their relative percentage interests set forth in Exhibit A attached hereto or by actual cost per Unit, unless otherwise determined by resolution of the Board. 6.4.2. Any Common Expense benefiting fewer than all of the Units but not falling within Section 6.4.1 may, at the Board's discretion, be assessed against the Unit or Units benefited equally, in proportion to their relative percentage interests set forth in Exhibit A attached hereto or by actual cost per Unit, subject to the requirements of Section 6.5.5. 6.4.3. Reasonable attorneys' fees and other professional costs incurred by the Association in connection with (i) the collection of Assessments, and (ii) the enforcement of the Governing Documents, the Act, or the Rules and Regulations against an Owner or Occupant or their guests, may be assessed against the Owner's Unit. 6.4.4. Late charges, fines and interest may be assessed as provided in Section 12. 6.4.5. Assessments levied under Section 515B.3 -116(a) of the Act to pay a judgment against the Association may be levied only against the Units existing at the time the judgment was entered, in proportion to their Common Expense liabilities. 6.4.6. If any damage to the Common Elements, Limited Common Elements or another Unit or any portion of the Owner's Unit that the Association is obligated to maintain hereunder is caused by the act or omission of any Owner or Occupant, or their guests, the Association may assess the costs of repairing the damage exclusively against the Owner's Unit to the extent not covered by insurance. 6.4.7. If Common Expense liabilities are reallocated for any purpose authorized by the Act, Assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated Common Expense liabilities. Assessments levied under Sections 6.4.1 through 6.4.6 may, at the Board's discretion, be assessed as a part of, or in addition to, the Assessments levied under Section 6.1 or 6.2. 6.5. Replacement Reserves. The Association shall include in its annual budgets replacement reserves projected by the Board to be adequate, together with past and future contributions to replacement reserves, to fund the replacement of those components of the Units and Common Elements, the Association is obligated to replace by reason of ordinary wear and tear or obsolescence, subject to the following: 109537.8 13 6.5.1. The amount annually budgeted for replacement reserves shall be adequate, together with past and future contributions to replacement reserves, to replace the components as determined based upon the estimated remaining useful life of each component; provided that portions of replacement reserves need not be segregated for the replacement of specific components, except as otherwise provided herein. 6.5.2. The annual budget need not include reserves for the replacement of (i) components that have a remaining useful life of more than 30 years, or (ii) components whose replacement will be funded by limited Assessments or by special Assessment, if approved pursuant to Section 6.5.5. 6.5.3. The replacement reserve funds shall be maintained in an account or accounts separate from operating funds. None of the replacement reserve funds shall be used or borrowed from to fund operating expenses. The Association may, however, pledge the replacement reserves as security for a loan to the Association. 6.5.4. The adequacy of the replacement reserves shall be reevaluated at least every third year after recording of this Declaration. 6.5.5. After termination of the Declarant Control Period, and subject to approval (i) by the Board and (ii) by Owners, other than Declarant or its affiliates, of Units to which 51 percent of the votes in the Association are allocated, the Association need not annually assess for replacement reserves to replace those components whose replacement is planned to be paid by special Assessment pursuant to Section 6.3 or by limited Assessment pursuant to Section 6.4; provided, however, approval by 51 percent of the votes of all Owners in the Association, including the Declarant or its affiliates, shall be required therefor after Declarant has conveyed sixty-seven percent of the Units to Persons other than an affiliate of Declarant. The approval provided for in the preceding sentence shall be effective for no more than the Association's current and three following fiscal years, subject to modification or renewal by the same approval standards. 6.6. Working Capital Fund. There shall be established a working capital fund to meet unforeseen expenditures or to purchase additional equipment or services for the Association. The Board may include in each subsequent annual budget a reasonable amount of working capital, based upon the anticipated needs of the Association for the year in question. There shall be contributed, on a one-time basis for each Unit sold by Declarant (except for Unit conveyances pursuant to the Order), an amount equal to two months installments of the estimated annual Assessments for the Unit. The contribution shall be paid by the purchasers of the Units at the time of closing of the initial sales of the Units by Declarant. The contributions to this fund are in addition to the regular installments of annual Assessments. The funds shall be deposited into a segregated Association account. Funds deposited in said account shall not be used to defray any of Declarant's expenses, reserve contributions or construction costs, nor to make up any budget deficits during the Declarant Control Period. 6.7. Liability of Owners for Assessments. The Owner of a Unit at the time an Assessment is payable with respect to the Unit shall be personally liable for the share of the Common Expenses assessed against such Unit. Such liability shall be joint and several where there are multiple Owners of the Unit. The liability is absolute and unconditional and no Owner 109537.8 14 is exempt from liability for payment of Assessments by right of set-off, by waiver of use or enjoyment of any part of the Property, by absence from or abandonment of the Unit, by the waiver of any other rights, or by reason of any claim against Declarant, the Association or its officers, directors or agents, or for their failure to fulfill any duties under the Governing Documents or the Act. 6.8. Assessment Lien. The Association has a lien on a Unit for any Assessment levied against that Unit from the time the Assessment becomes due. If an Assessment is payable in installments, the full amount of the Assessment is a lien from the time the first installment thereof becomes due. Fees, charges, late charges, fines and interest charges imposed by the Association pursuant to Section 5158.3-102(a)(10), (11) and (12) of the Act are liens, and are enforceable as Assessments, under this Section 6. Recording of the Declaration constitutes record notice and perfection of any lien under this Section 6, and no further recordation of any notice of or claim for the lien is required. The release of the lien shall not release the Owner from personal liability unless agreed to in writing by the Association. 6.9. Foreclosure of Lien, Remedies. A lien for Assessments may be foreclosed against a Unit under the laws of the state of Minnesota (i) by action, or (ii) by advertisement in a like manner as a mortgage containing a power of sale, provided, however, that in a foreclosure by advertisement, the foreclosing party shall be entitled to costs and disbursements of foreclosure and attorneys' fees authorized by the Declaration or Bylaws, notwithstanding the provisions of Minn. Stat. Section 582.01, subdivisions 1 and la. (in a foreclosure by action, the foreclosing party shall be entitled to costs and disbursements of foreclosure and attorneys' fees as the court shall determine.) The Association, or its authorized representative, shall have the power to bid in at the foreclosure sale and to acquire, hold, lease, mortgage and convey any Unit so acquired. The Owner and any other Person claiming an interest in the Unit, by the acceptance or assertion of any interest in the Unit, grants to the Association a power of sale and full authority to accomplish the foreclosure. The Association shall, in addition to its other remedies, have the right to pursue any other remedy at law or in equity against the Owner who fails to pay any Assessment or charge against the Unit. 6.10. Lien Priority. Alien for Assessments is prior to all other liens and encumbrances on a Unit except (i) liens and encumbrances recorded before this Declaration; (ii) any first mortgage on the Unit; and (iii) liens for real estate taxes and other governmental assessments or charges against the Unit. Notwithstanding the foregoing, if (i) a first mortgage on a Unit is foreclosed; (ii) the first mortgage was recorded on or after the date of recording of this Declaration; and (iii) no Owner or Person who acquires the Owner's interest in the Unit redeems pursuant to Minnesota Statutes Chapters 580, 581, or 582; then the holder of the sheriff's certificate of sale from the foreclosure of the first mortgage or any Person who acquires title to the Unit by redemption as a junior creditor shall take title to the Unit subject to a lien in favor of the Association for unpaid Assessments or installments thereof levied pursuant to Sections 515B.3 -115(a), (e)(1) to (3), (f) and (i) of the Act which became due, without acceleration, during the six months immediately preceding the end of the Owner's period of redemption. The amount of the unpaid Assessments shall be determined based upon the Association's then current annual budget. 109537.8 15 6.11. Real Estate Taxes and Assessments. Real estate taxes, special assessments, and other charges and fees which may be levied against the Common Elements by governmental authorities, shall be allocated among and levied against the Units based upon their respective percentage interests as set forth in Exhibit A, and shall be a lien against each Unit in the same manner as a lien for real estate taxes and special assessments levied against the Unit alone. 6.12. Volunta Conveyances, Statement of Assessments. In a voluntary conveyance of a Unit, the buyer shall not be personally liable for any unpaid Assessments and other charges made by the Association against the seller or the seller's Unit prior to the time of conveyance to the buyer, unless expressly assumed by the buyer. However, the lien of such Assessments shall remain against the Unit until released. Any seller or buyer shall be entitled to a statement, in recordable form, from the Association setting forth the amount of the unpaid Assessments against the Unit, including all Assessments payable in the Association's current fiscal year, which statement shall be binding on the Association, seller and buyer. SECTION 7 RESTRICTIONS ON USE OF PROPERTY All Owners and Occupants, and all secured parties, by their acceptance or assertion of an interest in the Property, or by their occupancy of a Unit, covenant and agree that, in addition to any other restrictions which may be imposed by the Act or the Governing Documents, the occupancy, use, operation, alienation and conveyance of the Property shall be subject to the following restrictions: 7.1. General. The Property shall be owned, conveyed, encumbered, leased, used and occupied subject to the Governing Documents and the Act, as amended from time to time. All covenants, restrictions and obligations set forth in the Governing Documents are in furtherance of a plan for the Property, and shall run with the Property and be a burden and benefit to all Owners and Occupants and to any other Person acquiring or owning an interest in the Property, their heirs, personal representatives, successors and assigns. 7.2. Certain Subdivisions and Conveyances Prohibited. Except as permitted by this Declaration, no Unit nor any part of the Common Elements may be subdivided or partitioned without the prior written approval of all Owners and all secured parties holding first mortgages on the Units. 7.3. Residential Use. The Units shall be used by Owners and Occupants and their guests exclusively as private, single family residential dwellings, and not for transient, hotel, commercial, business or other non-residential purposes, except as provided in Section 7.4. Any lease of a Unit (except for occupancy by guests with the consent of the Owner) for a period of less than two months, or any occupancy which includes services customarily furnished'to hotel guests, shall be presumed to be for transient purposes. 7.4. Business Use Restricted. An Owner or Occupant residing in a Unit may maintain a home occupation in such Unit; provided, that such use (i) is incidental to the residential use; (ii) does not involve physical alteration of the Unit visible from the exterior; (iii) is in compliance with all governmental laws, ordinances and regulations; (iv) does not involve observable business activity such as signs, advertising displays, unusual numbers of deliveries, 109537.8 16 or unusual levels of pedestrian or vehicular traffic to and from the Unit; (v) does not involve employees; and (vi) does not otherwise involve activity which disturbs the quiet enjoyment of the Property by the other Owners or Occupants. Other types of business, trade, occupational or professional use of any kind, whether carried on for profit or otherwise, shall not be conducted, maintained or permitted in any Unit or the Common Elements, except 7.4.1. The Association may maintain offices on the Property for management and related purposes. 7.4.2. Declarant may maintain offices, models, and sales facilities on the Property in connection with the exercise of its Special Declarant Rights. 7.5. Leasing. Leasing of Units shall be allowed (subject to reasonable regulation by the Association) but only in accordance with the following conditions: (i) no Unit may be subleased; (ii) a Unit must be leased in its entirety (not by room) unless simultaneously occupied by the Owner; (iii) the lease shall be in writing; and (iv) the lease shall provide that it is subject to the Governing Documents, the Rules and Regulations and the Act, and that any failure of the lessee to comply with the terms of such documents shall be a default under the lease. The Association may impose such reasonable Rules and Regulations as may be necessary to implement non-discriminatory procedures for the leasing of Units, consistent with this Section 7.5 and applicable law, including but not limited to (i) a requirement for a form addendum to be attached to each Unit lease to assure that the rights and authority of the Association and Owners and Occupants are recognized, (ii) a requirement for periodic verification of the age(s) of the Occupants of each Unit to ensure compliance with HOPA and the MHRA; and (iii) a requirement for the screening of lessees through a licensed screening organization; provided that such screening shall not violate federal, state or local discrimination laws. The leasing of Units shall be further subject to the age and occupancy restrictions set forth in Section 4.5. 7.6. Delegation of Use. An Owner's right of use and enjoyment of such Owner's Unit shall be automatically delegated to other persons occupying the Unit in lieu of the Owner pursuant to a lease or other legal right of possession. Unless otherwise authorized in writing by the Board, if persons other than the Owner or the Owner's family (e.g., lessees) have been given the legal right to possess the Owner's Unit, then those persons shall have the right to use any recreational facilities, parking, storage, and other amenities available by reason of occupancy of the Unit in lieu of the Owner and the Owner's family. 7.7. Storage and Parking. Personal property may not be stored, displayed or otherwise left outside the Units, except as authorized by the Board. The streets, walkways, driveways and portions of the Common Elements used for access to and from the Units, may not be obstructed, or used for parking, storage, activities or any purpose other than access and authorized parking. The Garage shall be used for parking of vehicles owned or leased by Owners and Occupants and such other incidental uses as may be authorized in this Declaration or by the Association. Any vehicle which, when parked, extends into or over the drive lanes or striped parking lanes within the Garage may be prohibited from parking within the Garage. The Stalls shall not be converted to other uses or used for storage or other purposes which would prevent the parking of a standard size automobile in the Stall. The use of Stalls, driveways and other parking areas on the Property (if any), and the types of vehicles and personal property permitted thereon, shall be subject to regulation by the Association, including but not limited to the right of the Association to restrict 109537.8 17 parking, tow vehicles parked in an unauthorized areas or to remove unauthorized personal property. 7.8. Animals. The Board shall have the exclusive authority to prohibit, or to allow and regulate, by Rules and Regulations, the keeping of animals on the Property. This authority may be exercised so as to permit or prohibit different types of animals, but those animals which are permitted (if any) shall be limited to common domestic house pets such as dogs, cats, fish, birds and the like. However, no animal may be bred, or kept or maintained for business or commercial purposes, anywhere on the Property. The word "animal" shall be interpreted in its broadest sense and shall include all living creatures except humans. Notwithstanding the foregoing, no Rule or Regulation may prohibit the keeping of a qualified service dog or similar animal by a person who is handicapped within the meaning of the Fair Housing Amendments Act of 1988 or comparable state law. 7.9. Quiet Enjoyment. All Owners and Occupants and their guests shall have a right of quiet enjoyment in their respective Units, subject to the rights of other Owners and Occupants to reasonable use of their respective Units and to the normal and customary sights, sounds, odors and activity generated thereby given the high density living environment associated with the nature and structure of the Building. Given the foregoing considerations, Owners and Occupants shall use the Property in such a manner as will not cause a nuisance, nor unduly restrict, interfere with or impede the use and quiet enjoyment of the Property by other Owners and Occupants and their guests. 7.10. Prohibited Conduct No Owner or Occupant shall (i) cause or permit any physical changes to their Unit that could jeopardize or impair the weather -tight soundness or safety of a Building, any Building system, or other Improvement located on the Property; (ii) interfere with any easement; (iii) unless first approved in writing by the Board, install or permit the installation of hard surface floor coverings within their Unit, except for the replacement of floor coverings of the same type as originally installed in the Unit; or (iv) unless first approved in writing by the Board, cause or permit any physical changes to their Unit which would impair the sound insulation qualities of a Building, including, but not limited to, the installation, in the Unit's perimeter walls, floors or ceilings, of speakers or other sound emitting devices. 7.11. Architectural Standards. Subject to Section 7.10 and this Section 7.11, no Improvements shall be made, or caused or allowed to be made, by any Owner or Occupant, or their invitees, in any part of the Common Elements, the Limited Common Elements or in any part of the Unit which affects the Common Elements or another Unit, or which is visible from the exterior of the Unit, without the prior written authorization of the Board, or an architectural committee appointed by it, and compliance with the requirements of this Section 7.11. Until Declarant no longer owns an unsold Unit, Declarant's written consent shall also be required for Improvements by the Association, any Owner, Occupant, or their invitees, to the extent the Improvement (i) materially affects any Unit owned by Declarant, or (ii) is otherwise subject to Section 15.6. 7.11.1. The Board may appoint, supervise and disestablish an architectural committee, and specifically delegate to it part or all of the functions which the Board exercises under this Section 7.11, in which case the references to the Board shall refer to the architectural committee where appropriate. In the event the Board makes a delegation 109537.8 18 hereunder, the Board shall also determine whether there is a right to appeal decisions of the architectural committee to the Board and, if so, the procedures that shall govern such an appeal. Notwithstanding the foregoing, the architectural committee shall be subject to the supervision of the Board. 7.11.2. The Board shall have authority to establish reasonable forms and procedures for applying for authorization for Improvements, and reasonable requirements for Improvements. The Board, in its sole discretion, may impose standards for design, appearance or construction which are greater or more stringent than standards prescribed by the Governing Documents or by building, zoning, or other governmental laws, codes, or regulations; provided that such standards shall be consistent with the architectural character and use of the Property. The Board shall be the sole judge of whether such criteria are satisfied, subject to any restrictions imposed by any applicable governmental laws, codes, ordinances or regulations, and shall have the right and authority to approve, conditionally approve or deny requests for Improvements in its sole absolute discretion and its determination in this regard shall be final and binding upon the Owners, Occupants and any other Person holding or acquiring any interest in the Unit. 7.11.3. The purpose of the requirements established by the Board shall be (i) to preserve the architectural style, the quality and the value of the Property, and (ii) to protect the Association and the Owners from undue liability arising out of the Improvements or any construction activity in connection therewith. 7.11.4. Improvements may be made in compliance with Section 51513.2-113 of the Act, and relocation of the boundaries of Units may be made in compliance with Section 51513.2-114 of the Act. 7.11.5. Approval of Improvements which cause a minor encroachment upon another Unit or the Common Elements shall create an appurtenant easement for such encroachment in favor of the Unit with respect to which the improvements are approved, notwithstanding any contrary requirement in the Governing Documents or the Act. A file of the Board or committee resolutions approving or denying all proposed Improvements shall be maintained permanently as a part of the Association's records. 7.11.6. Notwithstanding the restrictions set forth in this Section 7.11, antennas may be installed and the U.S. flag may be displayed in accordance with applicable state and federal law and the Rules and Regulations consistent therewith. 7.11.7. An Owner who causes an Improvement to be made, regardless of whether the Improvement is approved by the Board, shall be solely responsible for the construction standards and specifications relating to the Improvement, and for the construction work. The Owner, and not the Association, is responsible for determining whether any Improvement is in compliance with any requirements imposed by any governmental authority having jurisdiction over the Property. The Owner shall hold harmless, indemnify and defend the Association, and its officers and directors, and the other Owners from and against any expenses, claims, damages, losses or other liabilities, including without limitation attorneys' fees and other professional fees and costs, arising out of (i) any Improvement which violates any governmental laws, codes, ordinances or 109537.8 19 regulations; (ii) the inadequacy of the specifications for construction of the Improvements; or (iii) defects in the construction or installation of the Improvements. 7.11.8. This Section 7.11 shall not apply to Improvements made by Declarant pursuant to Section 15.1. 7.12. Compliance with Law. No use shall be made of the Property which would violate any then existing municipal codes or ordinances, or state or federal laws, nor shall any act or use be permitted which could cause waste to the Property, cause a material increase in insurance rates on the Property, or otherwise cause any unusual liability, health or safety risk, or expense, for the Association or any Owner or Occupant. 7.13. Time Shares Prohibited. The time share form of ownership, or any comparable form of lease, occupancy rights or ownership which has the effect of dividing the ownership or occupancy of a Unit into separate time periods, is prohibited. 7.14. Access to Units. In case of emergency, all Units and Limited Common Elements are subject to entry, without notice and at any time, by an officer or member of the Board, by the Association's management agents or by any public safety personnel. Entry is also authorized for maintenance purposes under Sections 8 and 1 l and for enforcement purposes under Section 12. SECTION 8 MAINTENANCE AND REPAIR The following provisions shall govern the maintenance, repair and replacement of the Property. 8.1. Association Responsibility. The Association shall undertake and perform the maintenance, repair and replacement of all Common Elements and Limited Common Elements, in accordance with the following provisions and subject to the following qualifications: 8.1.1. Subject to Section 8.1.2, the costs associated with the Association's maintenance obligations under this Section 8.1 shall be funded by Assessments determined and levied in accordance with Section 6. 8.1.2. The Association may, upon reasonable notice, assign to an Owner the obligation for maintenance of a Limited Common Element allocated to the Owner's Unit, or Common Elements benefiting only that Unit. However, if the Owner fails to perform the maintenance to the standards established by the Association, the Association may enter the Unit or Limited Common Element, perform the maintenance and assess the Owner's Unit for the costs; provided that reasonable notice and an opportunity to cure the violation shall first be given to the Owner. 8.1.3. The Association may, upon reasonable notice, elect to maintain, repair or replace mechanical, structural or other components within the Units and assess the costs against the Unit, if the failure or impairment of the component could result in damage to the Common Elements or other Units, impair the function of any Building system, or could create a health or safety hazard. 109537.8 20 8.1.4. The Association shall be responsible for incidental damage caused to a Unit or its Limited Common Elements by work undertaken by the Association pursuant to this Section 8.1. 8.1.5. If damage is caused to the Common Elements, Limited Common Elements or other Units by an Owner or Occupant, or their invitees, or by any condition in the Unit or Limited Common Elements which the Owner or Occupant has caused or allowed to exist, then the Association may, upon reasonable notice, repair the damage or correct the condition and assess the cost thereof against the responsible Owner's Unit. 8.1.6. The Association shall maintain, repair and replace the Common Elements in accordance with the requirements of the applicable City approvals, permits, regulations and agreements. 8.2. Owner Responsibility. The Owner shall, at his or her expense, be responsible for maintenance, repair and replacement as follows: 8.2.1. To maintain, repair, and replace all portions of the Owner's Unit, except those maintained by the Association, in good, clean, sanitary and safe condition. 8.2.2. To perform maintenance of the Limited Common Elements allocated to the Unit to the extent the Association assigns such obligations to the Owner. The Association may require that the Owners perform their maintenance obligations in accordance with standards established by the Association. 8.2.3. To perform the foregoing maintenance obligations in such manner as not to damage the Property, or unreasonably disturb or cause a hazard to other persons occupying or using the Property. 8.2.4. To promptly pay or reimburse the Association for any costs incurred by the Association for the repair of any damage to the Common Elements, Limited Common Elements or other Units, caused by the Owner or Occupant, or their invitees, or caused by any condition in the Unit or Limited Common Elements which the Owner or Occupant has allowed to exist. 8.3. Duty to Insgect/Report Defects. The Association shall regularly inspect the Common Elements for the purpose of evaluating the need for maintenance, repair or replacement. Owners or Occupants shall promptly report to the Association any material defect in the Common Elements or Limited Common Elements which may require maintenance, repair or replacement. 8.4. Easements for Inspection Maintenance, Repair and Replacement. Each Unit and the Common Elements and Limited Common Elements are subject to the inspection, maintenance, repair and replacement easements described in Section 11. 109537.8 21 SECTION 9 INSURANCE 9.1. Required Coverage. The Association shall obtain and maintain, at a minimum, a master policy or policies of insurance in accordance with the insurance requirements set forth in the Act and the additional requirements set forth herein, issued by a reputable insurance company or companies authorized to do business in the state of Minnesota, as follows: 9.1.1. Property insurance in broad form covering all risks of physical loss in an amount equal to one hundred percent of the insurable "replacement cost" of the Property, less deductibles, exclusive of land, footings, excavation and other items normally excluded from coverage (but including all building service equipment and machinery). The Association may or may not, as determined by the Board, insure the items referred to in Section 5158.3-113(b)(i) through (vii) of the Act, but must do so if required by the FNMA, FHLMC, FHA or VA, as referred to hereafter. The policy or policies shall cover personal property owned by the Association. The policy or policies shall also contain "Inflation Guard" and "Agreed Amount" endorsements, if reasonably available. Such policy or policies shall contain a standard "mortgagee clause" commonly accepted by private institutions and shall include such additional endorsements, coverages and limits with respect to the foregoing and other hazards as may be required from time to time by the regulations of the Federal Housing Administration ("FHA"), the U.S. Department of Veterans' Affairs ("VA"), the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC") as a precondition to their insuring, purchasing or financing a mortgage on a Unit. The Board may also, on behalf of the Association, enter into binding written agreements with a mortgagee, insurer or servicer, including without limitation the FHA, VA, FNMA or FHLMC, obligating the Association to keep certain specified coverages or endorsements in effect. 9.1.2. Commercial general liability insurance covering the use, operation and maintenance of the Common Elements and the activities of the Association, with minimum limits of One Million Dollars per occurrence, against claims for death, bodily injury and property damage, and such other risks as are customarily covered by such policies for projects similar in construction, location and use to the Property. The policy shall contain a "severability of interest" endorsement which shall preclude the insurer from denying the claim of an Owner or Occupant because of negligent acts of the Association or other Owners or Occupants. The policy shall include such additional endorsements, coverages and limits with respect to such hazards as may be required by the regulations of the FHA, VA, FNMA or FHLMC as a precondition to their insuring, purchasing or financing a mortgage on a Unit. 9.1.3. Fidelity bond or insurance coverage against dishonest acts on the part of directors, officers, managers, trustees, employees or persons responsible for handling funds belonging to or administered by the Association. The coverage must be no less than a sum equal to three (3) months aggregate assessments on all Units plus reserve funds. The fidelity bond or insurance shall name the Association as the named insured, and shall comply with the regulations of the FNMA, FHA, VA or FHLMC, respectively, if required by such agency as a precondition to its purchase, financing; insuring, or 109537.8 22 guaranteeing of a mortgage on a Unit. An appropriate endorsement to the policy to cover any persons who serve without compensation shall be added if the policy would not otherwise cover volunteers, or a waiver of defense based upon the exclusion of persons serving without compensation shall be added. 9.1.4. Flood insurance, if the Property is located within an area which has been officially identified by HUD or any other appropriate federal agency as having special flood hazards and for which flood insurance has been made available under the National Flood Insurance Program or comparable federal flood insurance program. Such flood insurance shall have the minimum coverages established or directed by HUD or the appropriate federal flood insurance program. 9.1.5. Workers' Compensation insurance as applicable and required bylaw. 9.1.6. Directors and officers liability insurance with such reasonable limits and coverages as the Board shall determine from time to time. 9.1.7. Such other insurance or additional amounts of insurance as the Board may determine from time to time to be in the best interests of the Association and the Owners. 9.2. Premiums,• Improvements; Deductibles. Except as provided in Section 6 and this Section 9.2, all insurance premiums shall be assessed and paid as an annual Assessment in accordance with Section 6.2. Policy deductible amounts shall be determined by the Board. If the items referred to in Section 5158.3-113(b)(i) through (vii) of the Act or other Improvements are covered, any increased cost may be assessed against the Units affected. The Association may, in the case of a claim for damage to a Unit or Units, (i) pay the deductible amount as a Common Expense; (ii) assess the deductible amount against the Units affected in any reasonable manner, or (iii) require the Owners of the Units affected to pay the deductible amount directly. The Association's decision as to who shall be charged with paying the deductible amount may, but need not, be based on fault. 9.3. Loss Payee,• Insurance Trustee. All insurance coverage maintained by the Association shall be written in the name of, and the proceeds thereof shall be payable to, the Association (or a qualified insurance trustee selected by it) as trustee for the benefit of the Owners and secured parties which suffer loss. The Association, or any insurance trustee selected by it, shall have exclusive authority to negotiate, settle and collect upon any claims or losses under any insurance policy maintained by the Association. 9.4. Required Policy Provisions. All policies of property insurance carried by the Association shall provide that: 9.4.1. Each Owner and secured party is an insured person under the policy with respect to liability arising out of the Owner's interest in the Common Elements or membership in the Association. 9.4.2. The insurer waives its right to subrogation under the policy against any Owner or member of the Owner's household and against the Association and members of the Board. 109537.8 23 9.4.3. If at the time of a loss under the policy there is other insurance in the name of an Owner covering the same property covered by the policy, the Association's policy is primary. 9.5. Effects of Acts Not Within Association's Control. All policies of insurance maintained by the Association shall provide that the coverage shall not be voided by or conditioned upon (i) any act or omission of an Owner or Mortgagee, unless acting within the scope of authority on behalf of the Association, or (ii) any failure of the Association to comply with any warranty or condition regarding any portion of the Property over which the Association has no control. 9.6. Cancellation,• Notice of Loss. Property insurance and comprehensive liability insurance policies maintained by the Association shall provide that the policies shall not be canceled or substantially modified, for any reason, without at least thirty days prior written notice to the Association and to all secured parties holding first mortgages on Units. 9.7. Restoration in Lieu of Cash Settlement. All policies of property insurance maintained by the Association shall provide that, despite any provisions giving the insurer the right to elect to restore damage in lieu of a cash settlement, such option shall not be exercisable (i) without the prior written approval of the Association (or any insurance trustee), or (ii) when in conflict with provisions of any insurance trust agreement to which the Association may be a party, or any requirement of law. 9.8. Owner's Personal Insurance. Each Owner shall obtain additional personal insurance coverage (commonly known as "gap coverage" or an "H06" policy) at his or her own expense covering fire and other casualty to the interior of the Unit, and the Owner's personal property and personal liability as well as those items set forth in Section 9.1.1 above which are not covered by the Association's policy or policies. In addition, such coverage shall include loss assessment coverage in an amount at least equal to the deductible under the Association's policy or policies. Each Owner shall be responsible for any deductible or related expenses to said personal property or personal liability insurance coverage. Each Owner shall further maintain, at his or her cost and expense, any special flood hazard insurance as may be required by the Mortgagee of his or her Unit. The Association shall have no obligation in connection therewith. Insurance policies maintained by Owners are without contribution as against the insurance purchased by the Association, except as to deductible amounts or other items not covered under the Association's policies. 9.9. Contribution. All policies of insurance maintained by the Association shall provide, where applicable, that such insurance may not be brought into contribution with any insurance purchased by Owners or their Mortgagees. SECTION 10 RECONSTRUCTION, CONDEMNATION AND EMINENT DOMAIN 10.1. Reconstruction. The obligations and procedures for the repair, reconstruction or disposition of the Property following damage or destruction thereof shall be governed by the Act, and this Declaration. Any repair or reconstruction shall be commenced as soon as practicable after the casualty and shall be substantially in accordance with the plans, specifications and 109537.8 24 design of the Property as initially constructed and subsequently improved. Notice of substantial damage or destruction shall be given as provided in Section 14. 10.2. Condemnation and Eminent Domain. In the event of a taking of any part of the Property by condemnation or eminent domain, the provisions of the Act shall govern; provided, (i) that notice shall be given as provided in Section 14; (ii) that the Association shall be the attorney-in-fact to represent the Owners in any related proceedings, negotiations, settlements or agreements; and (iii) that any awards or proceeds shall be payable to the Association for the benefit of the Owners and the mortgagees of their Units. Mortgagees and other secured parties shall be entitled to priority for condemnation awards in accordance with the priorities established by the Act and the Governing Documents, as their interests may appear. 10.3. Termination and Liquidation. The termination of the common interest community, and the distribution of any proceeds therefrom, shall be governed by the Act. Any distribution of funds shall be based upon the value of the Units as determined by their relative value for property insurance purposes, and shall be made to Owners and their Mortgagees and other secured parties, as their interests may appear, as provided in the Act. 10.4. Notice. The Association shall give written notice in accordance with Section 14 of any condemnation proceedings or casualty loss that affects either a material portion of the Property or a Unit or Units. 10.5. Association's Authority. In all cases involving reconstruction, condemnation, eminent domain, termination or liquidation of the common interest community, the Association shall have authority to act on behalf of the Owners in all proceedings, negotiations and settlement of claims. All proceeds shall be payable to the Association to hold and distribute for the benefit of the Owners and their mortgage holders, as their interests may appear, in accordance with the Act. SECTION 11 EASEMENTS Each Unit and the Common Elements, and the rights of the Owners and Occupants therein, shall be subject to the appurtenant easements and rights granted and reserved in this Section 11. 11.1. Ingress and Egress. Each Unit shall be the beneficiary of a nonexclusive easement for access, ingress to and egress from public roadways and walkways, on and across those portions of the Common Elements designated for use as driveways, walkways, lobbies, corridors, hallways, stairs or elevators, as originally constructed, shown on the Plat or otherwise designated by the Association, subject to any restrictions authorized by the Governing Documents or the Rules and Regulations. 11.2. Use and Enjoyment. Each Unit shall be the beneficiary of nonexclusive easements for use and enjoyment on and across the Common Elements and any Limited Common Element allocated to the Unit, subject to any restrictions authorized or imposed by the Governing Documents. 109537.8 25 11.3. Structural Support. Each Unit and the Common Elements shall be subject to and -" the beneficiary of nonexclusive easements for structural support in all walls, columns, joists, girders and other structural components located in or passing through another Unit or other parts of the Building, or shared with an adjoining Unit or the Common Elements. 11.4. Encroachments. Each Unit and the Common Elements, and the rights of the Owners and Occupants therein, shall be subject to a nonexclusive easement in favor of the adjoining Units for encroachments caused by the construction, reconstruction, repair, shifting, settlement or movement of any part of the Property, and for Improvements which are added in compliance with Section 7.11. If there is an encroachment upon another Unit or the Common Elements, as a result of any of the aforementioned causes, an easement shall exist for the encroachment, for the use, enjoyment and habitation of any encroaching Unit or Improvement, and for the maintenance thereof. Improvements added pursuant to Section 7.11 shall be limited to minor encroachments, and no easement shall exist unless the proposed Improvements have been approved and constructed as required by this Declaration. Such easements shall continue for as long as the encroachment exists and shall not affect the marketability of title. 11.5. Inspection Maintenance. Repair and Replacement. Each Unit, and the rights of the Owners and Occupants thereof, and the Common Elements and Limited Common Elements, shall be subject to and benefited by a nonexclusive easement in favor of the Association for the inspection, maintenance, repair and replacement of the Common Elements, the Limited Common Elements, the Units and Improvements related thereto, and the utilities serving the Units, to the extent necessary for the Association to fulfill its obligations under the Governing Documents. Each Owner shall afford to the Association and its management agents and employees, access at reasonable times and upon reasonable notice, to and through the Unit and its Limited Common Elements for inspection, maintenance, repair and replacement; provided that the Association and its management agents may access the Units and their Limited Common Elements without notice and at any time in case of emergency. 11.6. Utilities. The Common Elements and the Units shall be subject to and benefited by nonexclusive easements in favor of the Association, the City and all utility companies and other service providers for the installation, use, maintenance, repair and replacement of all utilities, services and common operating systems, such as natural gas, electricity, telephone, cable TV, internet and other electronic communications, water, sewer, septic systems, wells, and similar services, irrigation systems, fire control systems and other common operating systems, and metering and control devices, which exist, which are constructed as part of the development of the Property, which are approved by the City, which are approved by the Association under authority contained in the Governing Documents or the Act, or which are described or referred to in the Plat, this Declaration or other recorded instruments. Each Unit, and the rights of the Owners and Occupants thereof, shall also be subject to and benefited by a non-exclusive, easement in favor of the other Units, the Common Elements and the Association for all such utilities, services, and systems installed in accordance with the foregoing provision of this Section 11.6. Utilities and related services or systems shall be installed, used, maintained and repaired so as not to interfere with the use and quiet enjoyment of the Units by the Owners and Occupants, nor affect the structural or architectural integrity of the Building, Units or Common Elements. 109537.8 26 ti 11.7. Emergency Access to Units. In case of emergency, all Units and Limited Common Elements are subject to an easement in favor of the Association for access by the Association's management agents, and in favor of fire, police or other public safety personnel, in each case without notice and at any time. 11.8. Project Signs. The Association shall have a non-exclusive easement and right to erect and maintain temporary and permanent signs and related monuments identifying the common interest community on the Common Elements. Those parts of the Property on which permanent monument signs or related Improvements are located shall be subject to non- exclusive easements in favor of the Association for the continuing use, maintenance, repair and replacement of said signs and Improvements. 11.9. Declarant's Easements. The Units owned by Declarant and Common Elements are subject to exclusive easements in favor of Declarant for the exercise of its Special Declarant Rights. 11.10. Other Easements. The Property shall be subject to such other easements as may be recorded against the Property by reason of the City's requirements in connection with the development of the Property. 11.11. Continuation Scope and Conflict of Easements. The easements set forth in this Section 11 (i) shall run with the land and shall be appurtenant to the benefited Property; (ii) shall supplement and not limit any easements described elsewhere in this Declaration, or otherwise recorded; (iii) shall be permanent, subject only to termination in accordance with the terms of the easement; and (iv) shall include reasonable access to the easement areas over and through the Property for purposes of construction, maintenance, repair, replacement and reconstruction. 11.12. Non Interference: Impairment Prohibited, All Persons exercising easement rights shall do so in a reasonable manner so as not to materially interfere with the operation of the Property or cause damage to the Property, and shall be financially liable for all costs of repair of any part of the Property which is damaged by the Person's exercise of the easement rights. No Person shall impair, obstruct or cause damage to any easement area, or Improvements or equipment installed therein. Notwithstanding anything in this Declaration to the contrary, no Owner or Occupant shall be denied reasonable access to his or her Unit or the right to utility services thereto. 11.13. Benefit of Easements. All easements benefiting a Unit shall benefit the Owners and Occupants of the Unit, and their families and guests. However, an Owner who has delegated the right to occupy the Unit to an Occupant or Occupants, whether by a lease or otherwise, does not have the use and other easements rights in the Property during such delegated occupancy, except (i) as a guest of an Owner or Occupant, or (ii) in connection with the inspection of the Unit or recovery of possession of the Unit pursuant to law. 109537.8 27 SECTION 12 COMPLIANCE AND REMEDIES Each Owner and Occupant, and any other Person owning or acquiring any interest in the Property, shall be governed by and comply with the provisions of the Act, the Governing Documents, the Rules and Regulations, and such amendments thereto as may be made from time to time, and the decisions of the Association. A failure to comply shall entitle the Association to the relief set forth in this Section 12, in addition to the rights and remedies authorized elsewhere by the Governing Documents or the Act. 12.1. Entitlement to Relief. Legal relief may be sought by the Association, at its discretion, against any Owner, or by an Owner against the Association or another Owner, to enforce compliance with the Governing Documents, the Rules and Regulations, the Act or the decisions of the Association. However, no Owner may withhold any Assessments payable to the Association, nor take or omit other action in violation of the Governing Documents, the Rules and Regulations or the Act, as a measure to enforce such Owner's position, or for any other reason. 12.2. Remedies. In addition to any other remedies or sanctions, expressed or implied, administrative or legal, the Association shall have the right, but not the obligation, to implement any one or more of the following actions against Owners and Occupants and/or their invitees, who violate the provisions of the Governing Documents, the Rules and Regulations or the Act: 12.2.1. Commence legal action for damages or equitable relief in any court of competent jurisdiction. 12.2.2. Impose late charges of up to the greater of twenty-five dollars, or fifteen percent of the amount past due, for each past due Assessment or installment thereof, and impose interest at the highest rate permitted by law accruing beginning on the first day of the month after the Assessment or installment was due. 12.2.3. In the event of default of more than thirty days in the payment of any Assessment or installment thereof, all remaining installments of Assessments assessed against the Unit owned by the defaulting Owner may be accelerated and shall then be payable in full if all delinquent Assessments or installments thereof, together with all attorneys' fees and other professional fees, costs and late charges, are not paid in full prior to the effective date of the acceleration. Not less than ten days advance written notice of the effective date of the acceleration shall be given to the defaulting Owner. 12.2.4. Impose_ reasonable fines, penalties or charges for each violation of the Act, the Governing Documents or the Rules and Regulations. 12.2.5. Suspend the rights of any Owner or Occupant, or their invitees, to use any Common Element amenities; provided, that the suspension of use rights shall not apply to Limited Common Elements allocated to the Unit, and those portions of the Common Elements providing utilities service and access to the Unit. Such suspensions shall be limited to periods of default by such Owners and Occupants in their obligations under the Governing Documents, and for up to one year thereafter, for each violation. 109537.8 28 12.2.6. Enter any Unit, Common Elements or Limited Common Elements and restore any portions of the Common Elements, Unit or Units, or Limited Common Elements used, damaged or altered, or allowed to be used, damaged or altered, by any Owner or Occupant, or their invitees, in violation of the Governing Documents, and to assess the cost of such restoration against the responsible Owners and their Units. 12.2.7. Enter any Unit, Common Elements or Limited Common Element in which, or as to which, a violation or breach of the Governing Documents or the Rules and Regulations exists which materially affects, or is likely to materially affect, the health or safety of the other Owners or Occupants, or their guests, or the safety or soundness of any Unit or other part of the Property or the property of the Owners or Occupants. The Association may summarily abate, demolish and remove, at the expense of the offending Owner or Occupant, any structure, thing or condition in the Unit, Common Elements or Limited Common Elements which is causing the violation; provided, that any Improvements which are a part of a Unit may be altered, demolished or removed only pursuant to a court order or with the agreement of the Owner. 12.2.8. Foreclose any lien arising under the provisions of the Governing Documents or under law, in the manner provided by the Act. 12.3. Rights. to Hearing. Before the imposition of any of the remedies authorized by Section 12.2.4, 12.2.5, 12.2.6 or 12.2.7, the Board shall, upon written request of the offender, grant to the offender an opportunity for a fair and equitable hearing as contemplated by the Act. The offender shall be given notice of the nature of the violation and the right to a hearing, and five days within which to request a hearing. The hearing shall be scheduled by the Board and held within thirty days of receipt of the hearing request by the Board, and with at least ten days' prior written notice to the offender. If the offender fails to timely request a hearing or to appear at the hearing, then the right to a hearing shall be waived and the Board may take such action as it deems appropriate. The decision of the Board and the rules for the conduct of hearings established by the Board shall be final and binding on all parties. The Board's decision shall be delivered in writing to the offender within a reasonable time following the hearing, if not delivered to the offender at the hearing. 12.4. Lien for Charges. Penalties Etc. Any charges, fines, expenses, penalties, interest or other impositions under this Section 12 shall be a lien against the Unit of the Owner or Occupant against whom the same are imposed and the personal obligation of such Owner in the same manner and with the same priority and effect as Assessments under Section 6. The lien shall attach as of the date of imposition of the remedy, but shall not be final as to violations for which a hearing is held until the Board makes a written decision at or following the hearing. All remedies shall be cumulative, and the exercise of, or failure to exercise, any remedy shall not be deemed a waiver of the Association's right to pursue any others. 12.5. Costs and Fees. With respect to any collection measures, or any measures or action, legal, administrative or otherwise, which the Association takes pursuant to the provisions of the Act, the Governing Documents or the Rules and Regulations, whether or not finally determined by a court or arbitrator, the Association may assess the Unit owned by the violator with any expenses incurred in connection with such enforcement, including without limitation fines or charges previously imposed by the Association, reasonable attorneys' fees, and other 109537.8 29 professional fees, costs and interest (at the highest rate allowed by law) on the delinquent .' amounts 'owed to the Association. Such expenses shall also include any collection or , contingency fees or costs charged to the Association by a collection agency or other Person acting on behalf of the Association in collecting any delinquent amounts owed to the Association by an Owner or Occupant. The foregoing fees and costs shall be the personal obligation of the Owner of the Unit and shall be a lien against such Owner's Unit. 12.6. Liability for Owner's and Occupant's Acts. An Owner shall be liable for the expense of any maintenance, repair or replacement of the Property rendered necessary by such Owner's acts or omissions, or by that of Occupants or invitees in the Owner's Unit, to the extent that such expense is not covered by the proceeds of insurance carried by the Association or such Owner or Occupant. However, any insurance deductible amount and/or increase in insurance rates, resulting from the Owner's acts or omissions may be assessed against the Owner responsible for the condition and against his or her Unit. 12.7. Enforcement by Owners. The provisions of this Section 12 shall not limit or impair the independent rights of other Owners to enforce the provisions of the Governing Documents, the Rules and Regulations, and the Act as provided therein. SECTION 13 AMENDMENTS 13.1. Approval Requirements. Subject to the provisions of the Act, 'this Declaration may be amended with the following approvals: 13.1.1. The Board. 13.1.2. Owners of Units to which are allocated at least sixty-seven percent of the total votes in the Association, except as otherwise required by the Act. 13.1.3. Until the conveyance of fifty percent of the Units to persons other than the Declarant or its affiliates, Owners entitled to cast at least a majority of the votes allocated to Units not owned by Declarant or its affiliates. 13.1.4. The percentage of Mortgagees (based upon one vote per Unit financed) as and if required by Section 14. 13.1.5. Declarant, for so long as Declarant owns a Unit. 13.2. Procedures. Approval of the Owners may be obtained in writing, by electronic communication or at a meeting of the Association duly held in accordance with the Bylaws. Consents of Declarant and/or Mortgagees, if required, shall be in writing. The amendment shall be effective when recorded as provided in the Act. An affidavit by the Secretary of the Association as to the outcome of the vote, or the execution of the foregoing agreements or consents, shall be adequate evidence thereof for all purposes, including without limitation, the recording of the amendment. 109537.8 30 SECTION 14 RIGHTS OF MORTGAGEES It is important that individual mortgage loans on the Units be available to Owners and prospective Owners, and that, in order to enhance the availability of such financing, the Governing Documents contain qualification provisions that are acceptable to lenders, guarantors and insurers of Unit loans, such as FNMA, FHLMC and FHA. Accordingly, Mortgagees shall have the rights and protections set forth in this Section 14, which rights and protections shall control as against any other provisions of the Governing Documents. 14.1. Consent to Certain Amendments and Actions. In addition to any additional requirements imposed by this Declaration or by law, the consent of Mortgagees representing at least fifty-one percent of the votes allocated to Units that are subject to first mortgages held by Mortgagees (based upon one vote per Unit financed) shall be required for (i) any amendment to this Declaration or other Governing Documents of a material adverse nature to Mortgagees; and (ii) any action to terminate the common interest community after substantial destruction or condemnation occurs or other reasons agreed to by the foregoing percentage of Mortgagees. A Mortgagee shall be deemed to consent to and approve of any such amendment or action in the event the Mortgagee fails to submit a written objection to the Association within sixty (60) days after it receives notice of the same, by registered or certified mail, with a return receipt requested. 14.2. No Limitations on Sale/Right of First Refusal. The right of a Mortgagee to foreclose or accept a deed in lieu of foreclosure on a Unit, or to sell, lease, transfer or otherwise convey a Unit which it acquires by foreclosure or deed in lieu of foreclosure, shall not be subject to any right of first refusal or similar restrictions. 14.3. Priority of Lien. Any Mortgagee that comes into possession of a Unit by foreclosure of its first mortgage on a Unit, or by deed or assignment in lieu of foreclosure of the first mortgage on the Unit, takes the Unit free of any claims for unpaid Assessments or any other charges or liens imposed against the Unit by the Association which have accrued against such Unit prior to the acquisition of possession of the Unit by said Mortgagee, (i) except the six months of Assessments provided for in Section 6.10 or the Act, (ii) except that the Mortgagee will be liable for any fees or costs of collection of the unpaid Assessments if the Association's lien priority includes such fees and costs, and (iii) except that any unreimbursed Assessments or charges may be reallocated among all Units in accordance with their interests in the planned community. 14.4. Priority of Taxes and Other Charges. All taxes, assessments and charges which may become liens prior to the first mortgage under state law shall relate only to the individual Units and not to the common interest community as a whole. 14.5. Priority for Insurance/Condemnation Proceeds. No provision of this Declaration or other Governing Documents shall give an Owner, or any other party, priority over any rights of the Mortgagee of the Unit pursuant to its mortgage in the case of a distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Unit and/or the Common Elements. The Association shall give written notice to all Mortgagees of any 109537.8 31 condemnation or eminent domain proceeding affecting the common interest community, promptly upon receipt of notice from the condemning authority, in accordance with Section 14.6. 14.6. Notice Requirements. Mortgagees shall be entitled to timely written notice of: 14.6.1. a condemnation loss or any casualty loss which affects a material portion of the common interest community or the Unit securing the mortgage; 14.6.2. a sixty day delinquency in the payment of Assessments or charges owed by the Owner of a Unit on which it holds a mortgage; 14.6.3. a lapse, cancellation or material modification of any insurance policy maintained by the Association; and 14.6.4. a proposed action which requires the consent of a specified percentage of Mortgagees pursuant to Section 14.1. Any institutional insurer or guarantor of a mortgage on a Unit shall also be entitled to notice of the foregoing events or actions. SECTION 15 SPECIAL DECLARANT RIGHTS Declarant hereby reserves exclusive and unconditional authority to exercise the following Special Declarant Rights within the meaning of Section 515B.1-103 of the Act, or in any future amendment to the Act, and other rights reserved to Declarant elsewhere in this Declaration, for as long as it owns a Unit or for such shorter period as may be specifically indicated: 15.1. Complete improvements. To complete any Improvement indicated on the Plat, authorized by the City or by this Declaration, to make Improvements to the Units owned by Declarant and Common Elements to accommodate the exercise of any Special Declarant Rights and to have and use easements for itself and its employees, agents, and contractors through the Common Elements for such purposes. 15.2. Relocate Boundaries Subdivide Combine and Convert Units. To (i) relocate the boundaries of any Unit owned by it pursuant to Section 51513.2-114 of the Act, or (ii) create additional Units, Common Elements and Limited Common Elements, or any combination thereof, by the subdivision, conversion or combining of any Unit owned by it, pursuant to Section 51513.2-112 of the Act. The maximum number of additional Units that may be created within the common interest community by the subdivision or conversion of Units by Declarant pursuant to this Section 15.2 is five. 15.3. Sales Facilities. To operate, maintain and use a sales office, management office, models, and other development, sales and rental facilities as currently constructed within the Common Elements, and within any Units owned or leased by Declarant; to erect, maintain and use signs and other sales displays advertising the common interest community and/or offering the Units for sale or lease, in or on any Unit owned by Declarant and on the Common Elements; 109537.8 32 ! and to have and use easements for itself and its employees, agents, and contractors through the ` Common Elements for such purposes. 15.4. Control of Association. To appoint and remove up to three members of the Association's five member Board, until the earliest of: (i) voluntary surrender of control by the Declarant; (ii) the conveyance to Owners other than the Declarant of seventy-five percent of the total number of Units; or (iii) the date three years following the date of the first conveyance by Declarant of a Unit to an Owner other than the Declarant. 15.5. Common Element Licenses. To grant common element licenses as provided in Section 515B.2 -109(e) of the Act, subject to and in accordance with Sections 3.3 and 3.4. 15.6. Approval of Exterior Features. To review, and approve or disapprove, the exterior design, materials, size, site location and other exterior features of buildings and other structures, landscaping and other exterior improvements located upon the Property, and any modifications or alterations thereto. 15.7. Assignment of Special Declarant Rights. To transfer or assign, in whole or in part, the Special Declarant Rights described in this Section IS to other Persons, in accordance with and subject to the provisions of Section 51513.3-104 of the Act. Subject to any other limitations provided in this Declaration or the Act, the Special Declarant Rights described in Sections 15.1, 15.2, and 15.3 above shall be exercised in a commercially reasonable manner and so as not to unreasonably interfere with the use and quiet enjoyment of the Units and Property by the other Owners and Occupants. Furthermore, subject to any other limitations provided in this Declaration or the Act, all Special Declarant Rights terminate ten years after the date of the first conveyance of a Unit by Declarant to a Person other than a Declarant unless extended by the vote or written agreement of Owners entitled to cast at least 67 percent of the votes allocated to Units not owned by a Declarant. SECTION 16 MISCELLANEOUS 16.1. Severability. If any term, covenant, or provision of this instrument or any exhibit attached hereto is held to be invalid or unenforceable for any reason whatsoever, such determination shall not be deemed to alter, affect or impair in any manner whatsoever any other portion of this Declaration or exhibits attached hereto. 16.2. Construction. Where applicable, the masculine gender of any word used herein shall mean the feminine or neutral gender, or vice versa, and the singular of any word used herein shall mean the plural, or vice versa. References to the Act, or any section thereof, shall be deemed to include any statutes amending or replacing the Act, and the comparable sections thereof. Any amendment to the Act shall retroactively apply to the Association and the Property, except as expressly prohibited or qualified by the Governing Documents. 16.3. Tender of Claims. In the event that any incident occurs which could reasonably give rise to a demand by the Association against Declarant for indemnification pursuant to the Act, the Association shall promptly tender the defense of the action to its insurance carrier, and 109537.8 33 give Declarant (i) written notice of such tender; (ii) written notice of the specific nature of the .� action; and (iii) an opportunity to defend against the action. 3 16.4. Notices. Unless specifically provided otherwise in the Governing Documents or the Act, all notices required to be given by or to the Association, the Board, the Association officers, or the Owners or Occupants shall be (i) in writing and shall be effective upon hand delivery, or mailing if properly addressed with postage prepaid and deposited in the United States mail, or (ii) by electronic communication and shall be effective when sent, as and if authorized by the Bylaws and Minnesota Statutes Chapter 317A; except that registrations pursuant to Section 2.2 of the Bylaws shall be effective upon receipt by the Association. 16.5. Declarant Approvals or Consents. To the extent this Declaration requires the consent or approval of Declarant for an amendment to this Declaration or other action of the Association or another Person, including, without limitation, the consents and/or approvals required by Sections 5.6, 7.11, 13.1.5 or 15.6, Declarant shall be deemed to consent to and approve of any such amendment or action in the event Declarant fails to submit a written objection to the Association within sixty (60) days after it receives notice of the same, by registered or certified mail, with a return receipt requested. Declarant's counsel shall also be provided a copy of said notice by U.S. mail, if Declarant's counsel has filed a written request therefor with the Association. 16.6. Conflicts Among Documents. In the event of any conflict among the provisions of the Act, this Declaration, the Bylaws and the Rules or Regulations, the Act shall control unless it permits the documents to control. As among this Declaration, the Bylaws and the Rules and Regulations, this Declaration shall control, and as between the Bylaws and the Rules and Regulations, the Bylaws shall control. 16.7. Duration of Covenants. The covenants, conditions, restrictions, easements, liens and charges contained in this Declaration shall be perpetual, subject only to termination as provided in this Declaration and the Act. 109537.8 34 IN WITNESS WHEREOF, the undersigned has executed this instrument the day and year first set forth in accordance with the requirements of the Act. EDINA HOLDINGS LLC a Delaware lirru l ability company Its: IVIA r1V6' STATE OF MfNNEJS9 ) ss. COUNTY OFCU1nt3 nL4A! 'L 19041he foregoing instrument was acknowled ed before me this 1 F� day of 1!4-190411!4- 2011, by Ar'dr'�2w Pres/0yr) , the `M a na am of Edina Holdings LLC, a Delaware limited liability company, A behalf of said entity. 109537.9 35 a Notary Public TRAVIS W 3EA ''� + • .. 4* �r p,.�,¢,, VER 't't ;�r.•� •••'z NoWy rubk Maine r� �� . {y..• MY ConmbWon E*kes April 26.2M 8 THIS INSTRUMENT WAS DRAFTED BY: Mark S. Radke, Esq. FECHABER, CARSON, FENCON & VOGT, P.A. �.I�'., t: '• ^�;�:'s` Attorneys at Law 220 South Sixth Street Suite 2200 Minneapolis, MN 55402 (612) 339-6321 109537.9 35 COMMON INTEREST COMMUNITY NO. 1963 a THE CREEK EXHIBIT A TO DECLARATION SCHEDULE OF UNITS AND PERCENTAGE INTERESTS Unit No. Percentage Interest Unit No. Percentage Interest Unit No. Percentage Interest Unit No. Percentage Interest 103 .660 201 .658 301 .658 401 .658 104 .658 202 .649 302 .651 402 .648 105 .658 203 .660 303 .660 403 .660 106 1.109 204 .658 304 .658 404 .661 107 .711 205 .658 305 .658 405 .658 108 .616 206 1.109 306 1.109 406 1.109 109 .997 207 .706 307 .711 407 .711 110 1.011 208 .618 308 .617 408 .619 111 .710 209 .998 309 .998 409 .997 112 .744 210 1.011 310 1.015 410 1.017 113 .582 211 .716 311 .712 411 .721 114 1.330 212 .745 312 .745 412 .744 115 .720 213 .580 313 .581 413 .584 116 .661 214 1.330 314 1.328 414 1.330 117 .658 215 .721 315 .723 415 .721 118 .669 216 .658 316 .658 416 .658 119 .727 218 1.344 317 .658 417 .658 120 .721 219 .723 318 .669 418 .669 121 .741 220 .717 319 .720 419 .722 122 .741 221 .899 320 .719 420 .720 123 .783 222 .899 321 .899 421 .899 124 .720 223 .784 322 .899 422 .899 125 1.055 224 .721 323 .784 423 .783 126 .815 225 1.051 324 .721 424 .721 127 .786 226 .806 325 1.058 425 1.928 128 .721 227 .777 326 .816 427 .772 228 .721 327 .777 428 .721 229 .539 328 .722 429 .546 230 .788 329 .541 430 .786 231 .946 330 .786 431 .938 232 .949 331 .938 432 .954 233 .703 332 .949 433 .703 234 .702 333 .702 434 .699 334 .698 109537.8 - s COMMON INTEREST COMMUNITY NO. 1963 THE CREEK EXHIBIT B TO DECLARATION UNDERLYING LEGAL DECRIPTION OF PROPERTY Lot 1, Block 1, Gramercy Edina, Hennepin County, Minnesota. 109537.8 ,J,.,.09-116-214C�2C2 - � Afj U /u/J //-/} . / . / / / , - --------- ------------------------ lie __' - ---------------------- '� . y