SECOND AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR BELLA COLLINA AND SUPPLEMENTAL DECLARATION

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This instrument prepared by

And return to:

Baker & Hostetler LLP

200 South Orange Avenue, Suite 2300

P.O. Box 112

Orlando, Florida 32802-0112

Attn: William C. Guthrie, Esq.



SECOND AMENDED AND RESTATED

DECLARATION OF COVENANTS,

CONDITIONS, AND RESTRICTIONS

FOR BELLA COLLINA AND

SUPPLEMENTAL DECLARATION






SOLICITORS. 26296. 00002, 100873552.9. Bella CoUina 2nd Amended Restated Declaration

4/14105 4:39 PM

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SECOND AMENDED AND RESTATED DECLARATION OF

COVENANTS, CONDITIONS, AND RESTRICTIONS

FOR BELLA COLLINA AND SUPPLEMENTAL DECLARATION

THIS SECOND AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTlONS FOR BELLA COLLINA AND SUPPLEMENTAL DECLARATION C'CC&Rs") is made this 151h day of April, 2005 by Ginn-LA Pine lsland Ltd., LLLP, a Georgia limited liability limited partnership (..Declarant") (as further defined below) whose post office address is 215 Celebration Place, Suite 200, Celebration, FL 34747, and is joined in by BELLA COLLINA PROPERTY OWNER'S ASSOCIATION, INC., a Florida corporation not for profit ("Association") whose post office address is 215 Celebration Place, Suite 200, Celebration, FL 34747.

WHEREAS, Declarant desires to develop a planned community to be known as ''Be11a Collina" (as hereinafter defined); and

WHEREAS, on January 16, 2004, Dec1arant recorded the Declaration of Covenants, Restrictions and Easements for Bella Collina in Official Record Book 249, Pages 568-596, Public Records of Lake County (the "Initial Declaration"); and

WHEREAS, on May 17, 2004, Declarant recorded the Amended and Restated Declaration of Covenants, Restrictions and Easements for Bella Collina in Official Record Book 2571, Pages 1533-1688, Public Records of Lake County, Florida (the ..First Amended Declaration"), which amended and restated the Initial Declaration as set forth therein, and

WHEREAS, the First Amended Declaration subjected certain property to the terms of the First Amended Declaration and reserved the Declarant's right to subject additional property to the terms of the First Amended Declaration; and

WHEREAS, Declarant, in accordance with its reserved rights under Section 8 of the First Amended Declaration, desires to again amend and restate the common plan of development for Bella Collina; and

WHEREAS, in order to develop and maintain Bella ColHna as a planned residential community and to preserve the values and amenities of such community, it is necessary to declare, commit and subject the Committed Property (as hereinafter defined) {and such additional properties which may be added to the Committed Property and which may hereafter be subject to these CC&Rs) and the improvements now or hereafter constructed thereon to certain land use covenants, restrictions, reservations, regulations, burdens, liens, and easements; to facilitate the maintenance of surface water, stormwater drainage and retention areas and improvements; to provide for the ownership, operation and maintenance of the Utility Systems (as hereinafter defined); and to delegate and assign to the Association certain powers and duties of ownership, administration, operation, maintenance and enforcement; and

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WHEREAS, in addition to the property initially committed to the terms of the First Amended Declaration, Declarant, desires to add and subject certain additional property, comprised of the Bella Collina East subdivision and Bella Collina West subdivisions, to the terms of these CC&Rs; and

WHEREAS, the Association is joining in these CC&Rs in order to acknowledge its obligations hereunder.

NOW, THEREFORE, in consideration of the premises and covenants herein contained, Declarant hereby declares that these CC&Rs supersede the First Amended Declaration in its entirety and that the Committed Property and such Additional Property which become Committed Property shall be owned, held, used, transferred, sold, conveyed, demised and occupied subject to the covenants, restrictions, easements, reservations, regulations, burdens and liens hereinafter set forth, all of which shall run with the Committed Property and any part thereof and which shall be binding upon all parties having any right, title or interest in the Committed Property or any part thereof, their heirs, successors and assigns.

ARTICLE I


DEFINITIONS

The terms used in these CC&Rs shall be defined as set forth herein unless expressly provided otherwise.

Section 1. "ADDITIONAL PLA T" shall mean the plat of any Additional Property provided a Supplemental Declaration for such Additional Property is recorded amongst the Public Records of the County in accordance with these CC&Rs. "Additional Plat" shall also mean the replat of all or any portion of the Plat or any other plat of all or any portion of the Committed Property.

Section2. "ADDITIONAL PROPERTY" shall mean any real property (other than the Committed Property) that may be submitted by Declarant to the terms and provisions of these CC&Rs by a Supplemental Declaration which shall be executed by the owner of the Additional Property and need not be joined in by any other person or Owner. No portion of any Additional Property shall be encumbered by these CC&Rs unless and until such property is added by a Supplemental Declaration by the fee owner thereof. In the event any Additional Property becomes encumbered by these CC&Rs, then, and only then in such event, the term "Committed Property" as used herein shall also include the Additional Property.

Section 3. "AMENTDMENT(S)" shall mean any and all amendments to these CC&Rs, all of which shall be consecutively numbered beginning with the "First Amendment to the Second Amended and Restated Declaration of Covenants, Conditions and Restrictions for Bella Collina" and each of which shall be properly adopted pursuant to the terms of the Bella Collina Documents and recorded in the Public Records of the County; provided, however, the failure to so consecutively number such amendments shall not impair their validity hereunder and such amendments to the extent not otherwise numbered will be deemed to have been numbered in chronological order of their appearance in the Public Records of the County. "Amendment(s)"

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shall also mean any and all amendments to any Supplemental Declaration, as recorded in the Public Records of the County.

Section 4. "ARCHITECTURAL CONTROL BOARD" or "ACB" shall mean the committee created pursuant to Article VIII hereof.

Section 5. "ARTICLES" shall mean the Articles of lncorporation of the Association which have been filed in the Office of the Secretary of State of the State of Florida, a true copy of which is attached hereto as Exhibit "B" and incorporated herein by this reference, as such Articles may be amended from time to time.

Section 6. "ASSESSMENT' shall mean assessments for which all Owners are obligated to the Association and includes "Base Lot Assessments", "Lot Type Maintenance Assessments," "Neighborhood Assessments", if any, and "Special Assessments" (as such terms are defined herein) and any and all other assessments which are levied by the Association in accordance with the Bella Collina Documents.

Section 7. "ASSOCIATION" sha11 mean and refer to BELLA COLLThlA PROPERTY OWNER'S ASSOCIATION, INC., a not-for-profit Florida corporation, its successors and assigns, pursuant to the Articles of Incorporation, filed in the Office of the Secretary of State of the State of Florida, as amended by any amendments thereto, and which Association is responsible for the maintenance, preservation and architectural control of Bella Collina as provided in these CC&Rs.

Section 8. "ASSOCIATION PROPERTY" shall mean such portions of the Committed Property which are not included in any Lot or the Club Property, except those areas dedicated to the public by the Plat or Additional Plat, if any, or otherwise conveyed to the Community Development District or other public entity in accordance with the provisions of these CC&Rs, and which are or shall be owned or maintained by th1::: Association, as set forth in these CC&Rs, for the common use and enjoyment of the Owners within Bella Collina, together with landscaping and any other Improvements thereon, including, without limitation, the Drainage System, the Utility Systems, all structures, gatehouses, open spaces, private streets, asphalt bike paths, horse trails, sidewalks, irrigation facilities, decorative street lights, perimeter fence, entry or other lighting, if any, and entrance features, buffer tracts, monument walls, site walls, gazebos, retaining walls, fountains, littoral plantings and decorative street signs, but excluding any public utility installa6ons thereon. Notwithstanding anything to the contrary contained in these CC&Rs, "Association Property" does not include or refer to the Club Property or any portion of the Club Property.

Section 9. "BELLA COLLINA" shall mean that planned residential development planned to be developed in stages on the Total Property in the County, which encompasses the Total Property and is intended to comprise approximately eight hundred and one (801) single family homes or other residential unit types as may be approved by the County and the Association Property, CDD Property (as defined in Article II, Section 9), Club Property, and Equestrian Property, if any. Bella Collina will consist of the land set forth in Exhibit "A" attached hereto and made a part hereof and may be expanded by the recording of one or more Supplemental Declaration(s).

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Section 10. "BELLA COLLIJ\IA DOCUMENTS" shall mean in the aggregate these CC&Rs, the Art]cles and the Bylaws, the Articles of Incorporation and Bylaws of a Neighborhood Association, if any, the Plat, the Additional Plat, if any, and all of the instruments and documents referred to therein, including, but not limited to, any Amendment(s) and Supplemental Declaration(s).

Section 11. "BOARD" shall mean the governing body of the Association.

Section 12. "BUILDER" shall mean: (i) a person or entity who in its normal course of business purchases a portion of the Committed Prope1ty for the purpose of constructing thereon a residential structure for sale or a model home; (ii) a person or entity who in its normal course of business constructs a residential structure on a portion of the Committed Property owned by another; (iii) a person or entity who acquires a portion of the Committed Property for the purpose of resale to a person engaged in the business of constructing residential structures for sale, and who is so designated by Declarant.

Section 13. "BYLAWS" shall mean the Bylaws of the Association, which have been or wi1l be adopted by the Board, an initial copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference, as such Bylaws may be amended from time to time.

Section 14. "CC&Rs" shall mean this instrument as it may be amended from time to time, together with any Supplemental Declaration{s) or Amendments thereto, which may be recorded amongst the Public Records in accordance with these CC&Rs.

Section 15. "CLUB A T BELLA COLLINA" or "CLUB" shall mean the golf course, country club faci1ities, and other recreational and social facilities located in Lake County, Florida, which are owned or operated by Club Property Owner. The Club Property Owner shall have the right, in its sole, absolute, and unfettered discretion, to include, or not include, the Club Property as part of the Club, or to withdraw the Club Property from the Club.

Section 16. "CLUB AT BELLA COLLINA PROPERTY" or "CLUB PROPERTY" shall mean Tracts B, G, and N, as such tracts are more particularly described on the Bella Collina West p1a4 the Equestrian Property, and all of the real property included within the Committed Property, if any, as may be owned from time to time by the Club Property Owner, together with the golf course, tennis courts, country club facilities, equestrian facilities, and other recreational and social facilities constructed thereon, if any, that are independently owned and operated by the Club Property Owner, or its successors and assigns. Any of the Committed Property, except Lots and such other property which has been conveyed or dedicated to the Association, the public, or the CDD, may be designated as "Club Property" by the Declarant in Exhibit "A" to these CC&Rs or in a Supplemental Declaration, and should any Additional Property be subjected to provisions of these CC&Rs, Declarant shal1 have the right to designate any or a11 of such property as Club Property. The Club Property is not Association Property.

Section 17. "CLUB PROPERTY OWNER" shall mean the record holder of fee simple title or ground lessee of the Club Property.

Section 18. "COMMITTED PROPERTY" shall mean that certain real property described in Exhibit "A" and such additions thereto as may hereafter be brought within the jurisdiction of

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these CC&Rs and/or the Association; provided, however, Dec1arant reserves the right to withdraw from the provisions hereof, such portion or portions of the Committed Property as Declarant from time to time elects, upon the execution by Declarant of a Supp1ementa1 Declaration.

Section 19. "COMMUNITY DEVELOPMENT DISTRICT" or "CDD" shall mean the Pine Island Community Development District, a local unit of special purpose government which was created pursuant 10 Chapter 190, Florida Statutes, and is limited to the performance of those specialized functions authorized by Chapter 190, Florida Statutes.

Section20. "COMMUNITY-WIDE STANDARD" means the standard of conduct, maintenance, management, operation, use or other activity generally prevailing throughout the Committed Property, which shall never be lower than the standards established by the Board or the ACB for the Committed Property, or lower than the standards of construction and quality required by the ACB for the initial approval and construction of Improvements. Such standard is expected to evolve over time as development progresses and maybe more specifically determined by the Board, Declarant, or the ACB; provided, however, the Community-Wide Standard may not be lowered without the written approval of the Declarant.

Section 21. "COUNTY" shall mean Lake County, Florida.

Section 22. "DECLARANT' s1m1l mean and refer to GilUl-LA Pine Island Ltd., LLLP, a Georgia limited liability partnership, and any successor or assign thereof to which Ginn-LA Pine Island Ltd., LLLP specifically assigns all or part of the rights of Declarant hereunder by an express written assignment, whether recorded in the Public Records of the County or not. The written assignment may give notice as to which rights ofDeclarant are to be exercised and as to which portion of the Total Property. Jn any event, any subsequent declarant shall not be liable for any default or obligations incurred by any prior declarant, except as may be expressly assumed by the subsequent declarant, and any prior Declarant shall not be liable for any subsequent default or obligations incurred by any subsequent Declarant. An Owner shall not, solely by the purchase of a Home and/or Lot, be deeme9 a successor or assign of Declarant under the Bella Collina Documents unless such Owner is specifically so designated as a successor or assign of such rights in the instrument of conveyance or any other instrument executed by Declarant. Section 23. "DIRECTOR" shall mean a member of the Board.

Section 24. "DRAINAGE PERMIT" shall mean and refer to Permit numbers and 4-069-86624-2 issued by SJRWMD, and any successor permits, issued by SJRWMD for the construction, operation, and maintenance of the Drainage System on the Committed Property.

Section25. "DRAINAGE SYSTEM" shall mean the surface water management system including, but not limited to, all structures, Lakes, swales, inlets, culverts, retention ponds, outfalls, storm drains, pump stations, connecting pipes, mitiga1ion areas and simi1ar systems which are designed and constructed or implemented to control discharges which are necessitated by rainfall events, and is used to collect, convey, drain, store, retain, absorb, inhibit, treat, control, use or reuse water to prevent or reduce flooding, overdrainage, environmental

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degradation, and water pollution or otherwise affect the quantity and quality of discharges within and from Bella Collina.

Section 26. "EQUESTRIAN PROPERTY" shall mean the lands, if any, located on the Committed Property that are privately owned and operated as stables, riding trails, and pastures together with related and supporting facilities and improvements but not to include any other property. TheEquestrianPropertyisClubProperty.

Section 27. "FIRST SUPPLEMENTAL DECLARATION" shall mean this Second Amended and Restated Declaration of Covenants, Condition:;, and Restrictions for Bella Collina and Supplemental Declaration, which adds and subjects the lands described in the plats of Bella Collina East and Bella Collina West to the Committed Property pursuant to the terms of these CC&Rs.

Section 28. "HOME" shall mean a residential dwelling unit constructed within Bella Collina, which is designed and intended for use and occupancy as a single-family residence.

Section 29. "IMPROVED LOT" shaU mean a Lot on which the construction of any Horne has been completed and for which Home a certificate of occupancy or equivalent therefor has been issued by the appropriate governmental agency.

Section 30. "IMPROVED LOT OWNER" shall mean the Owner of an Improved Lot.

Section 31. "IMPROVEMENT" shall mean all structures or artificially created conditions and appurtenances thereto of every type and kind located within Bella Collina, including, without limitation, buildings, walkways, horse trails, berms, fountains, sprinkler pipes, gatehouses, roads, driveways, fences, retaining walls, underground footers and other foundation supports, stairs, landscaping, hedges, plantings, poles, swings, tennis courts, swimming pools, covered patios, screen enclosures, jogging, bicycling and walking paths, basketball backboards and hoops, signs, site walls, gazebos, benches, mailboxes, decorative street lights and signs.

Section 32. "INDIVIDUAL LOT ASSESSMENTS" shall mean assessments levied against each Improved Lot and Unimproved Lot, as more particularly described in Section 1 of Article VII of these CC&Rs.

Section33. "INSTITUTIONAL MORTGAGE" shall mean a mortgage held by an Institutional Mortgagee on any property within Bella Collina.

Section 34. "INSTITUTIONAL MORTGAGEE OR INSTITUTIONAL LENDER" shall mean any lending institution owning a first mortgage encumbering any Home or Lot within Bella Collina, which owner and holder of said mortgage shall either be a bank, life insurance company, federal or state savings and loan association, real estate or mortgage investment trust, building and Joan association, mortgage banking company licensed to do business in the State of Florida, or any subsidiary thereof, licensed or qualified to make mortgage loans in the State of Florida or a national banking association chartered under the laws of the United States of America or any "secondary mortgage market institution," including the Federal National Mortgage Association ("Th1MA"), Government National Mortgage Association ("GNMA"), Federal Home Loan Mortgage Corporation ("FHLMC") and such other secondary mortgage market institutions as the

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Board shall hereafter approve in writing; any and all lenders, and the successors and assigns of such lenders, which have loaned money to Declarant and which hold a mortgage on any portion of the Total Property securing any such loan; any pension or funds qualified under the Internal Revenue Code; the Veterans Administration, the Federal Housing Administration or the Department of Housing and Urban Development or such other lender as is generally recognized in the community as an institutional lender; or Declarant, its successors and assigns.

Section 35. "INTEREST" shall mean the maximum nonusurious interest rate allowed by law on the subject debt or obligation, and if no such rate is designated by law, then eighteen percent (18%) per annum.

Section 36. "LAKE LOT" shalt mean a Lot within Bella Collina abutting one of the Lakes (as described in Article II hereof).

Section 37. "LEGAL FEES" shall mean reasonable fees for attorney and paralegal services incurred in connection with: (i) negotiation and preparation for litigation, whether or not an action is actually begun, through and including all trial and appellate levels and postjudgment, bankruptcy and probate proceedings, and (ii) collection of past due Assessments including, but not limited to, preparation of notices and liens; and shall also include court costs through and including all trial and appellate levels and postjudgment, bankruptcy and probate proceedings.

Section 38. "LOT" shall mean and refer to any parcel of land within Bella Collina as shown on the Plat or any Additional Plat upon which a Home is permitted to be constructed, together with the Improvements thereon, and any pot1ion of the Total Property within Bella CoJlina that is dec1ared to be a Lot by a Supplemental Declaration and is not subsequently withdrawn from the provisions of these CC&Rs by a Supplemental Declaration. For purposes of Base Lot Assessments, a Lot is either an Improved Lot or an Unimproved Lot.

Section 39. "MEMBERS" shall mean and refer to all of the Owners who are also members of the Association, as provided herein.

Section 40. "NEIGHBORHOOD" shall mean any development of Lots within the Committed Property which is designated as a Neighborhood as provided in Article Il of these CC&Rs.

Section 41. "NEIGHBORHOOD ASSESSMENTS" shall mean assessments levied against the Homes in a particular Neighborhood or Neighborhoods which receive benefits, items or services not provided to all Homes within the Committed Property, as more particularly described in Article VI of these CC&Rs.

Section42. ''NEIGHBORHOOD ASSOCIATION'" shall mean any property owners' association, owners' association, condominium association, or other mandatory membership entity, their successors and assigns, responsible for administering a Neighborhood.

Section 43. "NEIGHBORHOOD EXPENSES" shall mean the actual and estimated expenses incurred by the Association or Neighborhood Association for the benefit of Owners of Homes within a particular Neighborhood or Neighborhoods, an as may be specifically authorized from time to time by the Board or the board of directors of the Neighborhood Association and as more particularly set forth herein.

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Section 44. "NOTICE AND HEARING" shall mean written notice and a public hearing before a tribunal appointed by the Board at which the Owner concerned shall have an opportunity to be heard in person or by counsel, at Owner's expense, in the manner set forth in Article X herein.

Section 45. "OPERATING EXPENSES" shall mean t11e expenses for which Owners are liable to the Associa1ion as described in these CC&Rs and any other Bella Collina Documents and include, but are not limited to, the costs and expenses incurred by the Association in administering, operating, maintaining, financing, or repairing the Association Property or any portion thereof and Improvements thereon and all costs and expenses incurred by the Association in carrying out its powers and duties hereunder or under any other Bella Collina Documents, including, without limitation, legal costs and expenses incurred by the Association.

Section 46. "OWNER" shall mean and refer to the record owner, whether one or more persons or entities, ofthe fee simple title to any Lot within Bella Collina, and includes Declarant for as Jong as Declarant owns fee simple title to a Lot, but excluding therefrom those having such interest as security for the perfonnance ofan obligation.

Section 47. "PLAT(S)" shall mean the Bella Colllna Plat recorded in Plat Book 51, Pages 31 through 49, inclusive; the Bella Collina East plat recorded in Plat Book 53, Pages 95 through 98, inclusive; and the Bella Collina West plat recorded in Plat Book 54, Pages 01 through 19, inclusive, all of the Public Records of the County. In the event an Additional Plat is recorded in the Public Records of the County, then the term "Plat" as used herein shall also mean the Additional Plats.

Section 48. "RULES AND REGULA TIONS" shall mean the use restrictions, rules, and regulations governing the use ofand activities on the Lots and the Association Property, as they may be amended from time to time. The initial Rules and Regulations as ofthe date hereofare set forth in Exhibit "F," attached hereto and made a part hereof.

Section 49. "SJRWMD" shall mean the St. Johns River Water Management District, a public body existing under Chapter 373, Florida Statutes.

Section 50. "SPECIAL ASSESSMENT" shall mean the assessment set forth in Article VII, Section 3 hereof.

Section 51. "SUPPLEMENTAL DECLARATION" shaJI mean any instrument executed by Declarant with respect to the Additional Property, if any (provided Declarant is the owner thereof), which, when recorded in the Public Records of the County, shall commit such property to the provisions of these CC&Rs, and shall be the only method of committing such property to the provisions of these CC&Rs. A Supplement Declaration may also add additional restrictions, declare certain properties to be or not to be Association Property, declare certain properties to be or not to be Club Property, or withdraw properties from the Committed Property and the provisions of these CC&Rs. The Association shall join in the execution of any Supplemental Declaration at the request of Declarant but such joinder shall not be required to make any such Supplemental Declaration effective, unless expressly provided herein. The Owners shall not be required to join in the execution of any Supplemental Declaration but shall

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nevertheless be bound thereby. Supplemental Declarations shall be numbered consecutively beginning with the Second Supplemental Declaration to the Second Amended and Restated Declaration of Covenants, Conditions and Restrictions for Bella Collina. These CC&Rs shall be considered the First Supplemental Declaration.

Section 52. "TURNOVER DATE" shall mean the date upon which "Class A Members" (as defined in Article V of the Articles), including Declarant, shall assume control of the Association and elect the Board, as more particularly described in Article V D.2 of the Articles.

Section 53. "UNWPROVED LOT'' shall mean a Lot on which the construction of a Home has not been completed and for which no certificate of occupancy or equivalent therefor has been issued by the appropriate governmental agency.

Section 54. "UNIMPROVED LOT OWNER" shall mean the Owner of an Unimproved Lot.

Section 55. "UTILITY SYSTEMS" shall mean and refer to any and all property, real and otherwise, utilized to furnish potable water, nonpotable water, sanitary sewer, and reuse water, if so provided, to the Owners and residents of the Committed Property, in addition to the Association Property and common areas within the Committed Property. Utility Systems shall include all mechanical and electronic equipment and systems utilized to provide water and sewer services to the Committed Property, including but not limited to piping, lift stations, water treatment plants, sewer treatment plants and sprayfields, and reuse facilities; provided, however, Utility Systems shall not include any portion of any system to provide utilities that is located within the boundaries of an individual Lot, from the terminus of the meter(s) for the individual Lot. The Utility System shaU stop on each Lot at the exit flow from the meter(s) for such Lot.

ARTICLE ll


DESCRIPTION OF BELLA COLLINA

Section1. GENERAL PLAN OF DEVELOPMENT. Bella Collina comprises the Committed Property encompassing, or which will encompass, Lots, Association Property, Club Property, publicly dedicated property, and property conveyed to the CDD, as more particularly defined by these CC&Rs and, in addition, lands whicJ1 Declarant may add, but shall in no way be obligated to add, by one or more Supplemental Declaration(s). The property initially declared in the Initial Declaration together with the Additional Property being added and subjected to these CC&Rs as set forth in this First Supplemental Declaration as the Committed Property is described in Exhibit "A" attached hereto (more particularly described as all of the lands subject to the Plats of Bella Collina East and Be11a Co1lina West). The Committed Property is planned to contain eight hundred one (801) Lots to contain Homes in accordance with these CC&Rs. However, Declarant has reserved the right to modify its plan of development of Bella Collina and to add ]and to Bella Collina, and, therefore, the number of Lots within Bella Collina may change. Dec1arant's general plan of development further contemplates that Homes to be built on the Lots shall be whatever types of structures Declarant may designate which are in conformance with these CC&Rs. Declarant's general plan of development of Bella Collina may also include

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whatever facilities and amenities Declarant considers in its sole judgment to be appropriate to Bella Collina.

Additional Property will become a part of Bdla Collina if, and only if, Declarant in its sole discretion adds Addi6onal Property to Bella Collina by recording a Supplemental Declaration to such effect. Declarant hereby reserves an easement for ingress and egress and for utilities and drainage over the Committed Property for the benefit of any Additional Property; provided, however, no such easement may be granted upon any portion of the Committed Property upon which a Home exists.

Declarant expressly reserves the right as to the Committed Property to (i) commence construction and development of the Committed Property if and when Declarant desires; (ii) develop the Committed Property upon such timetable as Declarant, in its sole discretion, chooses; and (iii) modify the plan of development of the Committed Property in such manner as it, in its sole discretion, chooses. Declarant reserves the right to replat such portions of the Committed Property necessary to accomplish the modification of the plan of development. Nothing contained herein shall be construed as obligating Declarant to construct Bella Collina according to the present plan of development nor as obligating Declarant to declare any Additional Property to be Committed Property.

Declarant intends that certain Homes constructed on the Committed Property may by action of Declarant (joined by the Owners thereof, if other than Declarant at the time of such action) be grouped together in Neighborhoods which will generally be administered by the Association, but in some instances may be administered by Neighborhood Associations. For example, and by way of illustration and not limitation, each condominium, townhome development, patio home development, and detached housing development may constitute a separate Neighborhood. Neighborhood Associations, if created, shall assess their members for their Neighborhood Expenses and shall also be responsible for collecting their share of Operating Expenses under these CC&Rs, unless the Association determines otherwise. When Neighborhoods are administered by the Association, the cost of managing a Neighborhood shall be home by the Owners in such Neighborhood as part of the Neighborhood Expenses.

When the context permits or requires. the term Neighborhood shall also refer to the "Neighborhood Committee" (a group of up to five people elected by the Owners in a Neighborhood without a formal association in such Neighborhood and established in accordance with the Bylaws) or Neighborhood Association having jurisdiction over the Committed Property v.rithin the applicable Neighborhood. It shall not be necessary for any Neighborhood to be governed by an additional owners association except in the case of a condominium or as otherwise required by law.

The Association is not a condominium association and therefore shall not be governed by the provisions of Chapter 718, Florida Statutes. These CC&Rs are not a declaration of condominium. No portion of the Committed Property is submitted by these CC&Rs to the condominium form of ownership. DecJarant does not currently intend that any portion of the Committed Property be submitted to the condominium form of ownership except property which may at some future time be legally described in a declaration of condominium specifically prepared in accordance with Chapter 718, Florida Statutes, executed by or with the consent of

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Declarant. Further, the expressed intent of these CC&Rs is that neither the substantive rights nor the procedural rights hereunder shall retroactively be affected by legislation subsequent to the date of the execution of these CC&Rs.

Section 2. ASSOCIATION PROPERTY. The Association Property shall consist of the property indicated on the Plat and Additional Plat, if any, as Association Property or as property reserved for or dedicated to the Association. The Association Property shall be used for all proper pu1poses by the Association and the Owners and their family members, guests, invitees and lessees in accordance with the Bella Collina Documents. Association Property may not be altered, modified, removed or replaced by Owners or their family members, guests, invitees or lessees.

The portions of Bella Collina described in this Section 2 shall constitute Association Property and shall be used solely in accordance with the covenants impressed upon the Association Property including without limitation as follows:

(1) Lakes. The "Lakes" are those portions of the Committed Property designated on the Plats as either Retention Tracts, Conservation Tracts, or Water and Wastewater Treatment Tracts and shall always be kept and maintained by the Association as areas for water retention, drainage, irrigation and water management purposes in compliance with all applicable governmental and SJRWMD requirements in accordance with those certain Drafoage Permits attached these CC&Rs as Exhibit ''D". The Lakes shall be maintained and administered by the Association and owned by the Association, as Declarant in its sole discretion determines.

(2) Drainage System. The Drainage System within Bella Collina, including all tracts and easements included therein as shown on the Plat. or Additional Plat, if any, shall be ov·med by the Association. The Association shall be responsible for all maintenance, operation, repair and replacement of any portion of the Drainage System in accordance with SJRWMD permits. Maintenance of the Drainage System shall mean the exercise of practices which allow the Drainage System to provide drainage, water storage, conveyance and other surface water or stormwater management capabilities as permitted by the SJRWMD. Any repair or reconstruction of the Drainage System shall be as permitted or, if modified, as approved in writing by the SJRWMD. The SJRWMD shall have the right to enforce, by a proceeding at law or in equity, the provisions contained in these CC&Rs which relate to the maintenance, operation and repair of the Drainage System.

Declarant hereby reserves and grants an easement in favor of the Association throughout all portions of Bella Collina as may be necessary for the purpose of accessing, maintaining and administering the Drainage System, including but not limited to the Lakes, and no Owner shall do any act which may interfere with the performance by the Association of its obligations hereunder. The Association reserves the right to transfer the Drainage System and the Lakes and/or its responsibility to maintain and administer the Drainage System and the Lakes, together with any easements relating to the maintenance of the Drainage System and the Lakes, to another entity, in whole or in part, subject to obtaining prior written approva] of the SJRWMD and the Club Property Owner.

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SJRWMD shall have the right to take enforcement ac6on, inc]uding an action for an injunction and penalties against the Association to compel it to correct any outstanding problems with the Drainage System including, but not limited to, the maintenance, operation and repair of the surface water management system facilities or in mitigation or conservation areas under the responsibility or control of the Association.

THE CDD, DECLARANT AND THE ASSOCIATION SHALL NOT BE OBLIGATED TO PROVIDE SUPERVISORY PERSOl\1NEL, INCLUDING, BUT NOT LIMITED TO, LIFEGUARDS, FOR THE LAKES. ANY INDIVIDUAL USING THE LAKES SHALL DO SO AT HIS/HER OWN RISK AND HEREBY HOLDS THE CDD, DECLARANT AND THE ASSOCIATION HARMLESS FROM AND AGAINST ANY CLAIM OR LOSS ARISING FROM SUCH USE.

EACH BY THE ACCEPTANCE OF TITLE TO HIS/HER LOT, ACKNOWLEDGES THAT THE LAKES ARE DEEP AND ARE DANGEROUS.

(3) Streets, Drives, Roads and/or Roadways. The "Streets," "Drives," "Roads" and/or "Roadways" are those portions of the Committed Property designated on the Plat or Additional Plat, if any, as a street, drive, road, roadway, way, 1oop, or lane and which are reserved for use by or dedicated to the Association, but specifically excluding any street or roadway dedicated to the public on the Plat or Additional Plat, if any. The Streets, Drives, Roads and/or Roadways shall be used as private roads by Declarant, Club Property Owner, the Association and the Owners, their family members, guests, lessees and invitees in accordance with the provisions of these CC&Rs. The Streets, Drives, Roads and/or Roadways shall be maintained and administered by the Association until such time as they may be pub]icly dedicated. Notwithstanding the foregoing, each Owner shall be responsible for the maintenance, repair and replacement of the driveway serving his Lot, including that portion of the driveway in a Street, Drive, Road and/or Roadway, if any, unless the Association determines that driveway was damaged by the Association in the fulfillment of its obligations and duties under these CC&Rs. The Club Property Owner and all of Club Property Owner's employees, contractors, guests and club members shall have an easement over the Street, Drives and Roads for ingress and egress to and from the Club Property and for the use of the Club Property.

(4) Open Space Areas. The "Open Space Areas" are those portions of the Committed Property designated on the Plat or Additional Plat, if any, as "Open Space Tracts" and are to be used, kept and maintained as such by Declarant, Club Property Owner, the Association, and the Owners within Bella Collina, their family members, guests, lessees and invitees, in accordance with the provisions of the Plat and these CC&Rs. The Open Space Areas, if conveyed to the Association, shall be owned by the Association and shall be administered and maintained by the Association in accordance with the requirements of the appropriate govenunenta] agencies.

(5) Street Lights. The "Street Lights" and any associated facilities placed within the Committed Property are or shall be installed, repaired, replaced, relocated, maintained and owned by the public utility responsible therefor, or owned by the Association but in either case, the Association is responsible to pay all fees associated with such installation, repair, replacement and maintenance, and for the furnishing of electricity thereto. Nothing in these CC&Rs shall be construed to require Declarant to install Street Lights within Bella Collina.

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(6) Decorative Street Lights. Declarant reserves the right, but shall not be obligated, to install ..Decorative Street Lights" in or near the entranceway and gatehouse to Bella Collina The Decorative Street Lights shall be installed, repaired, replaced, relocated, maintained and owned by the Association.

(7) Gatehouse, Entranceway, and Entry Gates. Bella Collina may include a gatehouse and entry gates installed by Declarant or the Association. Such gatehouse, entranceway and/or entry gates shall be deemed Association Property and shall be maintained, repaired or replaced by the Association and the expense thereof shall be included as an Operating Expense. The gatehouse, if any, may or may not be staffed, in any manner as determined in the sole discretion of the Association. All other portions of the entranceway shall also be owned and maintained by the Association. NEITHER DECLARANT, CLUB PROPERTY OWNER, NOR THE ASSOCIATION MAKES ANY REPRESENTATIONS WHATSOEVER AS TO THE SECURITY OF THE PREMISES OR THE EFFECTIVENESS OF ANY ENTRY GATES. ALL OWNERS AGREE TO HOLD DECLARANT, CLUB PROPERTY OWNER, AND THE ASSOCIATION HARMLESS FROM ANY LOSS OR CLAIM ARISING WITHIN THE COMMITTED PROPERTY FROM THE OCCURRENCE OF A CRIME OR OTHER ACT. THE OWNERS ACKNOWLEDGE THAT THE ENTRY GATES ARE DESIGNED TO DETER CRIME, NOT PREVENT IT. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, NEITHER DECLARANT, CLUB PROPERTY OWNER, NOR THE ASSOCIATION MAKES ANY REPRESENTATIONS WHATSOEVER TO COMMENCE, COMPLETE, CONSTRUCT OR STAFF ANY GATEHOUSE OR ENTRY GATE WITHIN ANY SPECIFIC TIME PERIOD. NO SUCH GATEHOUSE, ENTRANCEWAY, ENTRY GATES OR OTHER TRAFFIC CONTROL SHALL UNREASONABLY INTERFERE WITH OR RESTRICT THOSE PERSONS ENTITLED TO ENTER INTO THE COMMlTTED PROPERTY TO UTILIZE THE CLUB PROPERTY OR THE EQUESTRIAN PROPERTY.

(8) Buffers. The "Buffers" are those portions of the Committed Property which run along the outer perimeter of the Committed Property or adjacent to certain Streets, Drives, Roads and/or Roadways, and are designated on the Plat or Additional Plat, if any, as open space tracts or as buffers. In order to preserve the aesthetic image of Bella Collina and to help maximize the Owners' use and enjoyment thereof, no Improvements, landscaping or other additions are permitted within the Buffers without the prior written consent of the ACB (as hereinafter defined) and appropriate governmental agencies, excepting any Improvements, landscaping or other additions made or installed by Declarant such as, but not limited to, signs, walkways and light poles.

(9) Right to Add Additional lmprovements. Such portions of the Association Property upon which Declarant has constructed, or hereafter constructs, Improvements shall be kept and maintained for use in a manner consistent with the nature of such lmprovernents located, or to be located, thereon. Declarant reserves the right, but shall not be obligated, to construct additional facilities upon the Association Property. The decision as to whether to construct additional facilities and the construction thereof shall be in the sole discretion of Declarant.

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(10) Association's Right to Transfer Association Property and/or Maintenance Responsibilities For Same. The Association reserves the right to transfer the Association Property and/or any of its responsibilities to maintain and administer same to another entity, in whole or in part, whether public or private; provided, however, any assignment shall be subject to the easements and reservations of the Declarant and the Clμb Property Owner provided herein and shall not become effective unless and until approved in writing by both the Declarant and the Club Property Owner.

Section 3. CLUB AT BELLA COLLINA. ALTHOUGH THE CLUB IS WITHIN THE COMMITTED PROPERTY, NEITHER THE CLUB J>ROJ>ERTY OWNER, THE CLUB PROPERTY, NOR THE CLUB JS GOVERNED BY THE ASSOCIATION.

A. Improvement of Club at Bella Collina. Declarant anticipates, but does not commit, that the Club at Bella Collina will be improved for the operation of a golf club and clubhouse on that portion of the Committed Property described on the Bella Collina West plat.

B. Mandatory Membership. In the event the Club is developed within the Committed Property, all Owners (excluding the Declarant, Builders, the Association and the Club) who are approved for membership must acquire and maintain in good standing at least a social "Sports Membership" in the Club for each Lot owned. Notwithstanding any provision to the contrary herein, an Owner of more than one Lot in Bella Collina, who combines the Lots in a manner acceptable to the Club and Association in the manner provided in this paragraph, so that only one residence may be built thereon, will be required to maintain only one Membership for the combined Lots and may resign the additional Memberships. If the Owner of more than one Lot enters into an agreement to combine Lots that is acceptable to the Club and the Association, the Owner will not be required to acquire and maintain more than one Membership provided the Owner complies with the agreement. The obligation of the Member to pay Club Charges for the resigned Memberships will cease upon resignation of the Memberships after the combination of Lots in accordance with this paragraph.

C. Membership Plan Documents. Membership in the Club is subject to the terms and conditions of the Club Membership Plan, the Rules and Regulations and the Membership Agreements, as the same may be amended from time to time (the "Membership Plan Documents"). In the event the Club is converted from a non-equity club to a member-owned equity club in accordance with the Membership Plan Documents, the Membership Plan Documents shall also include the Club Equity Membership Plan, the Bylaws, the Certificate of Incorporation and the Membership Purchase Agreements. At such time as the Club is converted to an equity club, each member of the Club will be required to convert to the corresponding equity membership in the Club in accordance with the Membership Plan Documents, and shall be required to pay an equity contribution to the Club as determined under the Membership Plan Documents. Any required payment of an equity contribution shall be considered a Club Charge (as defined below).

D. Club Charnes. Membership in the Club requires the payment of a membership purchase price called a membership deposit and membership dues, fees and other amounts (the "Club Charges"). Club Charges shall be determined by the Club and are subject to change as contemplated by the Membership Plan Documents. Club Charges owed by Owners to the Club

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which become delinquent under the terms and conditions set forth in the Membership Plan Documents ("Delinquent Club Charges") are deemed to constitute Special Assessments of the Association, for which the Association shall have a lien against each Lot for all unpaid Special Assessments in accordance with the lien and foreclosure provisions set forth in Article VI. If the Club provides notice to the Association that an Owner owes Delinquent Club Charges, the Association shall have the right and obligation to collect Delinquent Club Charges from Owners and to enforce its lien for Special Assessments, through and including foreclosure of the lien. In the event that the Association does not enforce its rights hereunder with respect to a Special Assessment resulting from delinquent Club Charges, the Association hereby consents and authorizes the Club to enforce the Hen and foreclosure provisions of Article VI. All Delinquent Club Charges collected by the Association from Owners are the property of the Club and shall be immediately paid to the Club. Transfer of a Club membership shalI be in accordance with the Membership Plan Documents.

THE ASSOCIATION HAS A LIEN AGAINST EACH LOT FOR DELINQUENT CLUB CHARGES.

E. Club Property. The Club Property is privately owned and operated by the Club Property Owner and is not a part ofthe Association Property. The Club has the exclusive right to determine from time to time, in its sole discretion and without notice or approval of any change, bow and by whom the CJub Property shall be used. By way of example, but not limitation, the Club has the right to approve users and detetnline eligibility for use, to reserve use rights for future purchasers ofLots or Homes within Bella Collina, to modify the Membership Plan Documents, to reserve memberships, to sell, lease or otherwise dispose ofthe Club Property in any manner whatsoever and to any person whomsoever, to add, issue or modify any type, category or class of membership, to recall any membership at any time for any or no reason whatsoever, to convert the Club into a memberwowned club, to make any other changes in the tenns and conditions of membership or in the faciHties available for use by members and to require the payment of a purchase price, initiation fee, membership deposit, dues and other charges for use privileges. ACQUISITION OF A MEMBERSHlP IN THE CLUB IS MANDATORY. OWNERSHIP OF A LOT OR ANY PORTION OF THE PROPERTY OR MEMBERSHIP IN THE ASSOCIATION DOES NOT GIVE ANY VESTED RIGHT OR EASEMENT, PRESCRIPTIVE OR OTHERWISE, TO USE THE CLUB PROPERTY AND DOES NOT GRANT ANY OWNERSHIP OR MEMBERSHIP INTEREST IN THE CLUB OR THE CLUB PROPERTY.

F. Acknowledgements Club Property. Each Owner, by acceptance of a deed or recorded contract of sale to a Lot acknowledges:

1. That privileges to use the Club Property shall be subject to the terms and conditions of the Membership Plan Documents.

2. Notwithstanding the fact that the Club Property may be considered open space or a recreation area for purposes of applicable zoning ordinances and regulations, each Owner by acquisition of title to a Lot releases and discharges forever the Declarant, the Club Property Owner, the Club, their affiliates, successors and assigns and their respective members, partners, shareholders, officers, directors, employees and agents from: (1) any claim that the

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Club Property is, or must be, owned and/or operated by the Association or the Owners, and/or (2) any claim that the Ovmcrs are entitled to use the Club Property by virtue of their ownership of a Lot without acquiring a membership in the Club, paying the applicable membership contribution or membership deposit and dues, fees and charges established by the Club from time to time, and complying with the terms and conditions of the Membership Plan Documents for the Club.

3. Each Owner and the Association shall jointly and severally indemnify, defend, and hold harmless the Declarant, the Club Property Owner, the Club, their affiliates, successors and assigns and their respective members, partners, shareholders, officers, directors, employees and agents, against and in respect of, and to reimburse the Declarant, the Club Property Owner, the Club, their affiliates, successors and assigns and their respective members, partners, shareholders, officers, directors, employees and agents, on demand for, any and all drums, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including, but not limited to, interest, penalties, attorney and paralegal fees and disbursements (even incident to any appeals), that the Declarant, the Club Property Owner, the Club, their affiliates, successors and assigns and their respective members, partners, shareholders, officers, directors, employees and agents, shall incur or suffer, which arise out of, result from or relate to any claim that because the Club Property is deemed to be open space or a recreation area for purposes of applicable zoning ordinances and regulations, the Club Property must be owned and/or operated by the Association or the Owners and/or that Owners may use the Club Property without acquiring a membership in the Club pursuant to the Club's Membership Plan Documents and paying the membership contribution or membership deposit, and dues, fees and charges established by the Club from time to time;

4. That any entry upon the Club Property without permission of the Club may be deemed a trespass and each Owner shall refrain from, and shall cause all occupants of such Owner's Lot, their guests and invitees to refrain from any unauthorized entry upon the Club Property;

5. That the Club may, but is not obligated to, assign to the Association the right to collect any or all Club Charges on behalf of the Club. In such case, the Association will collect al1 Club Charges for a particular calendar month and remit same to the Club, together with a statement of accounts receivable itemized in reasonable detail and in such format as may be reasonably acceptable to the Club and the Association, setting forth the status of payment of each Club member, within ten (10) days following the end of the applicable calendar month. The Club shall have the right, at the Club's expense, upon reasonable notice to the Association to audit the Association's books and records relating to the collection of and remittance of the Club Charges. The Association shall, on behalf of the Club, take such actions to collect unpaid Club Charges as the Association customarily takes with respect to other delinquent Assessments or other amounts owned to the Association by Owners pursuant to the terms hereof and sha11 be reimbursed by the Club for all costs incurred by the Association for such action, within thirty (30) days of the Association's written request to the Club for such reimbursement;

6. That the proximity of Lots and Association Property to the Club Property results in certain foreseeable risks, including the risk of damage or injury from errant golf balls, or recovery thereof and that each Owner's use and enjoyment of his or her Lot and the

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Association Property may be limited as a result and that neither the Association, Declarant, the Club Property Owner, nor the Club shall have any obligation to take steps to remove or alleviate such risks, nor shall they have any liability to any Owner or occupant of any Lot, their guests or invitees, for damage or injury resulting from errant golf balls being hit upon any Lot or Association Property or recovery thereof;

7. That the Club and its designees may add to, remove or otherwise modify the landscaping, trees, and other features of the Club Property, including changing the location, configuration, size and elevation of bunkers, fairways and greens and constructing fences, and that neither the Club, Declarant, the Club Property Owner, nor the Association, shall have any liability to Owner as a result of such modifications to the Club Property,

8. That there are no express or implied easements over the Club Property for view purposes and no guaranty or representation is made by Declarant or any other Person that any view over and across the Club Property will be preserved without impairment, and that neither the Club, Club Property Owner, Declarant nor the Association shall have any obligation to prune or thin trees or other landscaping to preserve views over the Club Property;

9. That no representations or warranties which are inconsistent with this Section, either oral or written, have been made or are made by Declarant or the Association or by any person acting on behalf of any of the foregoing;

10. That the Club Property Owner may own one or more lakes, water retention ponds or other water features on the Committed Property. Notwithstanding the ownership of such lakes or water retention ponds, the Club may use any and all lakes, water retention ponds or other water features on the Committed Property for the purpose of irrigating and maintaining the Club Property with the result that the water level in such lakes, water retention ponds or other water features may from time to time vary. Each Owner of a Lot in the Committed Property acknowledges such right on the part of the Club and agrees not to commence any cause of action or other proceeding involving the Club based on the exercise of such right or otherwise interfere therewith; and

11. In the event there are insufficient water levels to provide the necessary irrigation needs of the Club Property and all other areas of the Committed Property, subject to applicable governmental permits and requirements, the Club Property shall have first priority of irrigation, fol1owed by the Association Property, any other area of common responsibility, and any exclusive common area within a Neighborhood.

G. Rights of Access and Parking. The Club Property Owner and members of the Club (regardless of whether such persons are Owners hereunder), their guests and invitees and the employees, agents, contractors and designees of the Club Property Owner shall at all times have a right and a non-exclusive easement of access and use overall roadways located within the Committed Property reasonably necessary to travel to and from the entrance of the Committed Property from and to the Club Property, respectively and further over those portions of the CommHted Property (whether Association Property or otherwise) reasonably necessary for the use operation, maintenance, repair and replacement of the Club Property. Without limiting the generality of the foregoing, members of the Club and permitted members of the public shall have

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the right to use the pedestrian and golf cart paths located throughout the Committed Property and to park their vehicles on the roadways located within the Committed Property at reasonable times before, during and after tournaments and various other functions held at the Club Property.


H. Utility and Services Easements. Declarant hereby grants the following perpetual, alienable, and transferable non-exclusive easement over and across the Committed Property for the benefit of the Club Property Owner: all of the Committed Property shall be subject to an easement or easements to provide for: (a) installation, service, repair and maintenance of the equipment and lines required to provide utility services to the Club Property, including, but not limited to, power, lights, telephone, cable television, gas, water, sewer and drainage, (b) governmental services, including, but not limited to, police, fire, health, sanitation and other public service personnel, including reasonable rights of access for persons and equipment necessary for such purposes for the benefit of the appropriate utility companies, agencies, franchises or governmental agencies, and (c) installation, service, repair and maintenance of the Club Property and the facilities constructed or to be constructed thereon.


I. Drainage and Inigation Easement. Declarant hereby grants the following perpetual, alienable, and transferable non-exclusive easement over and across the Committed Property for the benefit of the Club Property Owner: an easement for drainage, flowage and irrigation over, under and upon the Committed Property, including each of the Lots, in favor of the Club Property Owner, including, but not limited to, reasonable rights of access for persons and equipment to construct, install, maintain, alter, inspect, remove, relocate and repair the water Drainage System, flowage pipes and irrigation pipes. There is hereby further reserved for the benefit of Club Property Owner, and its agents, employees, successors, and assigns, a perpetual non-exclusive easement over, across and on the rights-of-way of all streets, roads and all unimproved portions of the Association Property and al1 areas of the Drainage System for access to construct, install, inspect, operate, maintain, repair or replace the Drainage System. By this easement, the Club Property Owner shall have the right to enter upon any portion of any portion of the Committed Property, including any Lot. which is a part of the Drainage System, at a reasonable time and in a reasonable manner, to operate, maintain or repair the Drainage System as required by the SJRWMD permit. Provided, however, no1withstanding anything herein to the contrary, Club Property Owner shall only exercise its right to enter onto a Lot pursuant to this paragraph if Club Property Owner has been assigned the responsibility to maintain the Drainage System, and shall exercise any of such rights in a manner that does not disturb any Home constructed on the Lot or materially interfere with an Owner's ability to construct a Home on the Lot. Additionally, the Club Property Owner shall have a perpetual non-exclusive easement for drainage, stormwater collection, retention and detention over, upon and within the entire Drainage System and all other drainage easements shown on each plat or otherwise reserved, declared or created pursuant to these CC&Rs. No person shall alter the drainage flow of the Drainage System, including buffer areas or swales, without the prior written approval of the SJRWMD.

J. Easement to Enter Upon Lots. Declarant hereby grants the following perpetual, alienable, and transferable non-exclusive easement over and across the Committed Property for the benefit of the Club Owner: an easement or easements for ingress and egress in favor of the Club Property Owner, to enter upon the Lots for the purposes of maintenance and/or repair of the Club Property. Provided, however, Club Property Owner shall exercise its rights pursuant to this

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paragraph in a manner that does not disturb any Home constructed on the Lot or materially interfere with an Owner's use or enjoyment of their Lot.


K. Assumption of Risk and Indemnification. Each Owner by its purchase of a Lot expressly assumes the risks associated with the Club Property (regardless of whether the Owner is using the Club Property) and agrees that neither Declarant, the Club Property Owner, the Club, the Association nor any of their affiliates, successors and assigns or their respective members (in the case of limited liability company only), partners, shareholders, officers, directors, employees and agents nor any other entity designing, constructing, owning or managing the Club Property or planning or constructing the Owner's Lot or Home shall be liable to Owner or any other person claiming any loss or damage, including, without limitation, indirect, special or consequential loss or damage arising from personal injury, destruction of property, loss of view, noise pollution or other visual or audible offenses or trespass or any other alleged wrong or entitlement to remedy based upon, due to, arising .from or otherwise related to the proximity of the Owner's Lot or Association Property to the Club Property, including without limitation, any claim arising, in whole or in part, from the negligence of Declarant or any other entity designing, constructing, owning or managing the Club Property or pJanning or constructing the Owner's Lot or Home. Each Owner hereby agrees to indemnify and hold harmless Declarant, the Club Property Owner, the Club, the Association, their affiliates, successors and assigns or their respective members (in the case of limited liability company only). partners, shareholders, officers, directors, employees and agents and any other entity owning or managing the Club Property against any and all claims by Owner's guests and invitees.

L. Landscape Easement. By recordation of these CC&Rs, Declarant does hereby reserve for itself and the Club Property Owner and the members of the Club, a perpetual, alienable and transferable easement over, across and upon each and every Lot which abuts or is contiguous to the Club Property for the purpose of operation and maintenance of the Club Property, including but not limited to, the installation of recreational and other facilities on the Club Property and the use of usual and common equipment for irrigation, maintenance and landscaping thereof, which easement shall specifically constitute a part of the Club Property. By way of example and not limitation, such easement shall permit, but shall not require, entry into any Lot for the purpose of planting grass, applying fertilizer, mowing and edging and removing any underbrush, trash, debris and trees.


M. Golf Play Easement. By recordation of these CC&Rs, Declarant does hereby reserve for itself and the Club Property Owner and the members and guests of the Club, a perpetual alienable and transferable easement over, across and upon each and every Lot which abuts or is contiguous to the Club Property for the purpose of doing every act necessary and appropriate to the use and enjoyment of the golf course, if any, located on the Club Property and playing of golf on the Club Property ("Golf Course Easements"), which shall include, but not be limited to, the recovery of golf balls from any Lot, the flight of golf balls over and upon any Lot, the usual and common noise level created by the playing of golf and the usual and common activities associated with the operation and maintenance of the Club Property. Nothing herein however, shall be deemed to permit the playing of golf on any Lot, it being the intention of this easement that golf play should be limited to the Club Property.

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1 . The existence of the Golf Course Easements shall relieve golfers of personal liability for damage caused by errant golf balls. Under no circumstances shall any of the following persons be held liable for any damage or injury resulting from errant golf balls or the exercise of this easement: Declarant; the Association or its Members (in their capacity as such); the successors-in-title to any golf courses; any developer or contractor (in their capacities as such); any successor or assigns to any of the foregoing; or any officer, owner, director, agent or partner of any of the foregoing, or any officer, owner, or director of any partner.


2 . The Club Property Owner or the owner of any other golf course located on the Committed Property, including their respective agents, successors and assigns, shall at all times have a perpetual, non-exclusive easement of access and use over and across those portions of the Committed Property and the Lots reasonably adjacent to the golf course as is reasonably necessary to the use, operation, maintenance, repair and replacement of such golf course.


3. The owners of any golf course on or adjacent to the Committed Property, including the Club Property Owner and the owner of any other golf course located on the Committed Property, and their respective successors and assigns, shall have a perpetual, exclusive easement of access over the Committed Property for the purpose of retrieving golf balls from bodies of water, other than pools, lying reasonably within range of golf balls hit from such golf course property. All golf balls within such bodies of water not immediately retrieved by the owner of such golf balls shall be the property of the golf course property owner.


N. The Club's Approval Rights. The Club Property Owner shall have the right to disapprove actions of the Board and any committees which in its reasonable judgment materially and adversely affects the use of the Club, the Club Property or the rights or obligations of the Club Property, the Club Property Owner or the Club under these CC&Rs. This right may be exercised by the Club at any time within ten (10) days after the Club's receipt of the notice of such proposed action. In the event that the Club Property Owner disapproves of any action of the Association, Board or any committee, the Association, Board or committee, as applicable, shall immediately cease and desist from taking any further action to move forward with or implement, the disapproval action.


This Section 3 may not be amended without the written consent of the Club Property Owner.


Section4. EQUESTRIAN PROPERTY. THE EQUESTRIAN PROPERTY IS NOT ASSOCIATION PROPERTY, IS NOT ASSOCIATION PROPERTY, NOR IS IT GOVERNED BY THE ASSOCIATION.


Declarant anticipates, but does not commit, that the Equestrian Property will be improved as and used for (a) stables, arenas, pastures and other purposes customarily associated with equestrian facility operations, (b) commercial activities incidental to or customarily associated with equestrian facility operations, including food and beverage services, and the recreation and entertainment of equestrian facility members and guests, (c) amateur and professional equestrian tournaments, and (d) such concessions and other commercial activities as are incidental to or customarily associated with such equestrian facilities and tournaments. Declarant, for itself and its licensees, agents, invitees, successors and assigns, specifically reserves an easement upon and the right, privilege and license of using, without charge, any or all of the Association Property

Page 29

located solely within the Committed Property, including, without limitation, any common streets, parking lots, horse trails, sidewalks, walkways and Lakes (for pasture irrigation purposes) in the Committed Property, in connection with and in support of the equestrian facility operations and activities, including, without limitation, any amateur or professional equestrian tournaments on the Equestrian Property, and including specifically, without limitation, the right, privilege, license and easement to limit, control, restrict or permit, by ticket, pass or otherwise, ingress or egress to and from the Equestrian Property by, through, over and upon any and all of the Association Property. The owner and/or operator of the Equestrian Property may locate and erect thereon from time to time buildings, structures, landscaping and other improvements without the requirement of approval by the Association or the ACB. The owner of the Equestrian Property shall not be a Member of the Association. The Owner of the Equestrian Property shall be responsible for operation, maintenance and repair of all of the Equestrian Property and all improvements from time to time located thereon. Nothing contained in these CC&Rs is intended to or shall make the Equestrian Property subject to the ownership, operation or control of the Association.


The Equestrian Property is initially included within the Club Property. The owner of the Equestrian Property may, subject to the approval of Association, convey portions of the Equestrian Property to the Association.


Section 5. LAKE LOTS. Notwithstanding anything contained herein to the contrary, and subject to the rights and obligations of the Association to maintain the Lakes as aforesaid for water retention, drainage, irrigation and water management purposes for all of Bella Collina and the right of the Association to adopt rules from time to time with respect to the use of the Lakes for such purposes, the Lakes shall be reserved for the private use and enjoyment of all Owners, their family members, guests, invitees and tenants, but only in accordance with these CC&Rs.


Certain Lake Lots will be approved in writing by the Association from time to time, in the Association's sole and absolute discretion and in comp]iance with all applicable permits, laws, rules and regulations, for the construction of a dock facility that will either be for the sole use of the Owner or for shared use with an Owner of an adjacent Lot. The construction, use and maintenance of such dock facilities shall at all times be in accordance with rules, regulations, terms and conditions that are established by the Association from time to time which shall include, but not be limited to, provisions setting forth Owners' rights and responsibilities relative to access, use, maintenance and repair. The Association hereby reserves the right to temporarily or permanently suspend the use of any dock facilities in the event that the foregoing requirements are not complied with. Notwithstanding anything provided herein to the contrary, the Dec]arant shall not be required to obtain the Association's approval to construct boat dock facilities; provided, however, that if the Dec]arant constructs any boat dock facilities to be shared by adjacent Owners, the Declarant, prior to conveying such facilities to the Owners, shall require the adjacent Owners to execute a separate written instrument between the adjacent Owners setting forth the terms of the use and maintenance of the shared dock facility, in such from that may be required by the Association.


Fishing in the Lakes shall be permitted; however, notwithstanding anything contained herein to the contrary, an Owner shall only access Pine Lake or Lake Apopka from boat ramps that are made available for such use as Association Property. Any Owner whose Lot is a Lake

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Lot ("Lake Lot Owner") shall also be entitled to access Pine Lake and Lake Apopka from any dock or shared dock facility which such Owner has the express right to utilize under a separate instrument setting forth the terms of use of such dock or shared dock facility. If an Owner is not a Lake Lot Owner, or if a Lake Lot Owner wishes to access a Lake other than that which an Owner's Lot is adjacent to or another area of the same Lake, access to the Lake shall be exclusively from boat ramps that are made available for such use as Association Property. In addition, no Owner shall be permitted access to or to fish in any Lake Bank Zone (defined below) which immediately abuts a Lake Lot owned by another Owner.


No planting, fencing or other Improvements or additions to the conservation easement areas surrounding the Lakes and outside the Lot is permitted. No installation of sand or other materials intended to simulate a beach shall be permitted along the Lake banks or within the conservation easement areas, Lake Bank Zones or rear yards of Lake Lots. Swimming in the Lakes is prohibited. Watercraft and trailers shall not be stored on the Lake banks or within the conservation easement areas or Lake Bank Zones. Lake Lot Owners who have been permitted to construct boat docks in accordance with the conservation easements may maintain their boat overnight at such boat dock provided that such Owner has installed and utilizes a boat lift that raises the boat fully and completely out of the water. No removal or damage to littoral or wetland plantings is permitted.


An imaginary line will be extended from the side property lines at the back of each Lake Lot down to the water's edge. The area encompassed between the rear property line and the water's edge between these imaginary lines shall be defined as the "Lake Bank Zone" as to each Lake Lot. Unless the Association or a Neighborhood Association expressly assumes responsibility for maintaining the landscaping on the Lake Lot, the Lake Lot Owner of each Lake Lot shall maintain and care for the landscaping located within his/her Lake Bank Zone. Irrigation of the Lake Bank Zone, including, by way of example and not limitation, the landscaping and littoral plantings located therein will be the responsibility of the Lake Lot Owner. Notwithstanding anything herein to the contrary, the Association shall be responsible for the maintenance of any portion of the Lake Bank Zone located within the conservation easements to the water's edge. The Association shall also be responsible for the maintenance, repair and replacement of the littoral plantings beyond the water's edge in all Lakes. The Association shall further be responsible for ensuring that all maintenance, repair, and replacement activities by Owners and the Association are consistent with the Pine Island Shoreline Management Plan dated February, 2004 prepared by EarthBalance, as such plan may be amended from time to time.

Section 6. COSTS. All costs associated with operating, maintmning. repairing and replacing the Association Property shall be the obligation of the Association unless such repair or replacement is necessitated by the acts or negligence of an Owner who in such event shall be responsible for same. The Association Property shall be conveyed to the Association in accordance with the provisions of Article III, Section 6 hereof.

Section 7. PRIVATE USE. For the tenn of these CC&Rs, the Association Property is not for the use and enjoyment of the public, but is expressly reserved for the private use and enjoyment of Declarant, Club Property Owner, the Association, and the Owners, and their family members, guests, invitees and lessees, but only in accordance with these CC&Rs.

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A. Notwithstanding anything in these CC&Rs to the contrary, however, Declarant hereby expressly reserves the right to use the Association Property for such period of time as Declarant determines to be necessary in connection with the sale and marketing by Declarant of Lots and Homes in Bella Collina and in any other communities developed or to be developed by Declarant or its affiliates, including, but not limited to, the holding of sales and marketing meetings and engaging in sales promotions and related sales and marketing activities.


B. Except to the extent herein provided, the Association Property shall be for the sole and exclusive use of the Owners and residents of Bella Collina and their family members, guests, invitees and lessees.


C. The administration, management, operation and maintenance of the Association Property shall be the responsibility of the Association, as provided herein and in the Bella Collina Documents.


D. The right to use the Association Property shall be subject to the rules and regulations established by the Association from time to time.

Section 8. MODELS. Declarant hereby reserves the right for Declarant, its affiliates and Declarant's designees, including Featured Builders, to construct and/or operate "model(s)" in Bella Collina. The "model(s)" may also be used for other communities being developed by Declarant, as Declarant or any of Declarant's affiliates may so determine, in their sole discretion. The .. model(s)" may also contain parking. landscaping and fencing across Streets, Drives, Roads and/or Roadways as Declarant may determine in its sole discretion. In the event that Declarant, Featured Builders or any of Declarant's affiliates constructs "model(s)" in the Committed Property, such "model(s)" may be used for such period of time that Declarant, Featured Builders or any of Declarant's affiliates determines to be necessary. By an Owner's acceptance of a deed for a Lot in Bella Collina, each Owner agrees and acknowledges that: (i) Declarant, Featured Builders and any of Declarant's affiliates have a right to construct or operate ''model(s)"; (ii) Declarant, Featured Builders and any of Declarant's affiliates have an easement over the Committed Property, including any Association Property, for ingress and egress to and from the "model(s)" and to use and show the models to prospective purchasers in the Committed Property or other communities being developed by Declarant and/or any of Declarant's affiliates, as long as such "model(s)" exist; and (iii) such Owner shall not interfere in any manner whatsoever in the sales process by Declarant, any of Declarant's affiliates or Featured BuiJders, including the carrying of signs or other types of demonstrations in the Committed Property or any public right-of-way adjacent to the Committed Property. Each Owner acknowledges that any such activities interfere with the quiet enjoyment of the Committed Property by the other Owners, are detrimental to the value of the Homes and the Club Property, and interfere with the Declarant's ability to conduct its business; and hereby releases, waives and bolds Declarant hann1ess from any claims or causes of action for damages resulting from same.


Section 9. COMMUNITY DEVELOPMENT DISTRICT. EACH OWNER ACKNOWLEDGES, UNDERSTANDS AND AGREES THAT THE CDD, A COMMUNITY DEVELOPMENT DISTRICT, AS SUCH DISTRICT IS DEFINED IN SECTION 190, FLORIDA STATUTES, HAS BEEN ESTABLISHED, AND THAT SUCH DISTRICT MAY INCLUDE ALL OR A PORTION OF BELLA COLLINA, AND MAY ALSO INCLUDE

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PROPERTY IN ADDlTION TO BELLA COLLINA. The CDD provides certain urban infrastructure facilities and services and has the authority to levy and collect fees, rates, charges, taxes and assessments to pay for, finance and provide said services. The CDD is empowered to plan, establish, acquire, construct or reconstruct, enlarge or extend, equip, operate, and maintain systems and facilities for the following basic infrastructures which may include without limitation: ( 1) water management and control Jands within the CDD and the connection of some or any of such facilities with roads and bridges, including the Drainage Systems; (2) roads, bridges and tunnels; (3) potable water distribution; (4) sewage collection; (5) Utility Systems; and (6) waste water management. The CDD may also be empowered to provide and maintain parks and facilities for indoor and outdoor recreational, cultural and educational uses; fire prevention and control, school buildings and related structures; limited access assurance services; mosquito control services; and waste collection and disposal.


THE CDD WILL IMPOSE TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON BELLA COLLINA THROUGH A SPECIAL TAXING DISTRICT. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES OF THE CDD AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE CDD. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW. These fees, rates, charges, taxes and assessments may appear on the annual real estate bill for each Owner as a separate and distinct tax. The annual real estate tax bill for each Owner may increase because of the creation of the CDD. All taxes of the CDD shall constitute a lien upon those portions of Bella Collina owned by any Owner. The CDD shall have the power to issue general obligation bonds, revenue bonds, refunding bonds and any other type of bond permitted by Chapter 190, Florida Statutes. The repayment of the bonds shall be funded through the imposition of ad valorem taxes on all the taxable property within the CDD or by the imposition of rates, fees, special assessments, or other charges. The CDD is empowered to pledge the full faith and credit of the CDD for the purpose of securing the repayment of the bonds. In addition, the CDD may secure reserve bonds by pledging the rates, fees or charges collected or to be collected by any revenue producing project. Bonds may be issued for the purpose of financing or refinancing capital improvements to pay off existing bonds or any other permitted use. Any such tax levied against the Association as the owner of any portions of the Association Property shall be an Operating Expense. The functions, duties and powers of the CDD shall be managed and exercised by a board of supervisors who shall be appointed and operate in accordance with applicable laws.


The Association and each Owner agrees, by acceptance of a deed or other instrument conveying title to any portion of the Committed Property, for itself, its successors or assigns and grantees, to pay any and all fees, rates, charges, taxes and assessments imposed by the CDD and to abide by its applicable regulations, as they may be amended from time to time. Declarant shall have the right to enforce these provisions by an action for specific performance.


If Declarant determines that it is in the best interests of Bella Collina for any of the CDD property to become Association Property, and Declarant, the Association and the CDD determine that such property should be conveyed to the Association to effectuate such determination, then the CDD shall convey to the Association fee simple title to those portions of the Association Property which are to become Association Property.

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Declarant shall have the right in its sole discretion to convey property owned by Declarant to the CDD with the joinder of no other person or entity being required, subject to the approval of the CDD and any applicable governmental requirements.


Section 10. CLUB PROPERTY O\VNER'S RIGHT TO IMPROVE ASSOCIATION PROPERTY. Declarant hereby expressly reserves for itself and for the Club Property Owner, the right to construct improvements upon the Association Property and to upgrade the improvements constructed on the Association Property. For purposes of this paragraph, "upgrades" shall include, without limitation, the installation of additional landscaping and plantings, the installation and replacement of Improvements, and the replacement of building materials with materials deemed superior by Declarant or Club Property Owner, in their sole discretion, such as the replacement of asphalt surfaces with decorative brick surfaces. All installations made pursuant to this paragraph shall become Association Property upon completion. Any and all initial construction and upgrade costs shall be the sole responsibility of the Declarant or the Club Property Owner, as applicable, and any and all future maintenance or replacement costs shall be the responsibility of the Association. All installations made pursuant to this paragraph shall be maintained by Association in accordance with the Community-Wide Standard in which the installations are located, which shall be established for such installations at the time that the installations are conveyed to the Association or otherwise deemed to be Association Property.


Section 11. NO CHARGE FOR USE OF EASEMENTS. Declarant, Club Property Owner, their guests and invitees and the employees, agents, contractors and designees of the Club Property Owner shall have the right to utilize the easements granted to each of them under this Article and these CC&Rs without cost or In furtherance thereof, Association is expressly prohibited from attempting to collect any Assessments or other charges relating to these easements from Declarant, Club Property Owner or any person or entity granted easement rights hereunder (other than Owners).

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ARTICLE lll

ADDITIONS TO AND WITHDRAWALS FROM THE COMMITTED PROPERTY; CONVEYANCE OF ASSOCIATION PROPERTY

Section 1. ADDITIONS. Declarant may from time to time, in its sole discretion, by recording appropriate Supplemental Declaration(s) in the Public Records of the County, add any Additional Property or any other real property to the Committed Property governed by these CC&Rs, and may declare all or part of such Additional Property or other property (including any Improvements thereon) to be Lots, Club Property, Equestrian Property, property of the CDD, or Association Property. Upon the recording of a Supplemental Declaration, the property described therein shall be deemed part of the Committed Property as if it were originally included therein and subject to these CC&Rs. Any such Supplemental Declaration may submit any Additional Property or any other real property to such modifications of the covenants and restrictions contained in these CC&Rs as may be necessary or convenient to reflect or adapt to any changes in circumstances or differences in the character of any such Additional Property or other property. Nothing contained in this Section 1 shall be construed to require the joinder by or entitle a right to consent by Owners or the Association to any such Supplemental Declaration; provided, however, the Association shall join in the execution of any such Supplemental Declaration at the request of Declarant.


Section 2. DESIGNATION OF ADDITIONAL ASSOCIATION PROPERTY AND CLUB PROPERTY. The Declarant may, from time to time, by recording Supplemental Declarations in the County, designate additional portions of the then existing Committed Property owned by it to be Association Property or Club Property.


Section 3. DISCLAIMER OF IMPLICATION. Only the real property described in Exhibit "A" hereto is submitted and declared as the Committed Property subject to these CC&Rs. Unless and until a Supplemental Declaration is recorded in the fashion required pursuant to these CC&Rs, no other property (including any Additional Property) shall in any way be deemed to constitute a portion of the Committed Property or be affected by the covenants and restrictions expressly binding the Committed Property as provided by the terms of these CC&Rs.


Section 4. ABSENCE OF OBLIGATION. Nothing in these CC&Rs shall be construed to require the Declarant to add any Additional Property to the Committed Property encumbered by these CC&Rs or to require it to declare any portion of any properties added to the Committed Property to be Association Property, nor shall anything in these CC&Rs be construed to require the Declarant to declare any portion or portions of the existing Committed Property as Association Property, except to the extent herein specifically provided.


Section 5. WITHDRAWAL. Notwithstanding anything herein to the contrary, Declarant reserves the absolute right at any time to withdraw portions of the Committed Property from the provisions of these CC&R.s by recording an appropriate Supplemental Declaration in the County. Any such Supplemental Declaration must be executed by the Declarant the Owner of each Lot located on the portion of the Committed Property sought to be withdrawn (if any) and each holder of an Institutional Mortgage on a Lot located on the portion of the Committed Property sought to be withdrawn (if any), in order to be effective. Nothing contained in this Section shall

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be construed to require the joinder or consent by Owners of Lots upon the portion of the Committed Property which is not withdrawn by such Supplemental Declaration, such Owners' Institutional Mortgagees, or the Association.


Section 6. TITLE TO THE ASSOCIATION PROPERTY. To the extent herein provided, the Association Property is hereby dedicated to the joint and several use in common of the Owners of all Lots that may, from time to time, constitute part of the Committed Property. Upon the completion of construction of a Home on each Lot located within the Committed Property and any Additional Property to be added by Declarant, or at such earlier time determined by Declarant, in Declarant's sole discretion, the Declarant or its successors and assigns shall convey and transfer to the Association, by quit claim deed, the fee simple title to the Association Property free and clear of any liens and the Association shall accept such conveyance, holding title for the Owners as aforestated. Such conveyance shall be subject to any real estate taxes and assessments due with respect to such Association Property from and after the date of recording these CC&Rs; any covenants, conditions, restrictions, permits, reservations and limitations then of record; the casements herein set out; any zoning ordinances then applicable; and these CC&Rs, as amended from time to time. The Club Property is not Association Property and in no event shall the Declarant or the Club Property Owner have the obligation to convey the Club Property to the Association.


At the time of conveyance of the Association Property or any portion thereof, the Association shall be required to accept such property and the personal property, if any, and Improvements appurtenant thereto. The Association hereby agrees to accept the Association Property and the personal property and Improvements appurtenant thereto in "AS IS" " WHERE IS" condition, without any representation or warranty, expressed or implied, in fact or by law, as to the condition or fitness of the Association Property or any portion thereof, and the personal property and Improvements appurtenant thereto.


The Association shall accept this conveyance of the Association Property and shall pay all costs of such conveyance including documentary stamps and other taxes of conveyance, recording charges, title insurance expenses and insurance fees. The conveyance shall not, however, impair in any way the Declarant's rights and easements as set forth in these CC&Rs.


Commencing upon the date these CC&Rs are recorded, and notwithstanding that title thereto has not yet been conveyed to the Association, the Association shall be responsible for the maintenance of the Association Property in a continuous and satisfactory manner without cost to the general taxpayers of the County. The Association shall be responsible for the payment of real estate and other taxes, if any, against the Association Property including taxes on any Improvements and any personal property thereon accruing from and after the date these CC&Rs are recorded.


The Owners (including Declarant as to Lots owned by it) shall have no personal liability for any damages for which the Association is legally liable or arising out of or connected with the existence or use of any Association Property or any other property required to be maintained by the Association.

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Subject to the foregoing, the Declarant may mortgage any or all portions of the Association Property to finance construction and development expenses provided that the mortgagee recognizes the rights of Owners under these CC&Rs and neither the Association nor any Owner is personally liable for paying the mortgage. In such event, neither the Association nor the Owners shall be required to join in or be entitled to consent to such mortgage. The Association Property shall be released from any such mortgage no later than the date same is conveyed to the Association.


Section 7. DELEGATION BY ASSOCIATION. The Association is empowered to delegate any of its functions with respect to the Committed Property or a Neighborhood including maintenance responsibilities and collection of Operating Expenses to the Neighborhood Association for that Neighborhood as may be deemed necessary from time to time by the Board. The Association reserves the right to convey any real property or personal property to a Neighborhood Association. The Neighborhood Association must accept any such delegation or conveyance.


Section 8. PARKING RIGHTS. The Association may maintain upon the Association Property parking spaces for Owners, Club Property Owner, occupants, visitors and guests. The use of such parking spaces by Owners, occupants, visitors and guests shall be subject to duly adopted rules and regulations of the Association or these CC&Rs. The Association shall not govern parking on the Club Property.


ARTICLE IV

OWNERS' PROPERTY RIGHTS


Section 1. OWNERS' EASEMENTS OF ENJOYMENT. Every Owner and family member, guest, lessee, agent or invitee of an Owner shall have a permanent and perpetual, nonexclusive easement for ingress and egress over, enjoyment in, and use of Association Property within the Committed Property, in common with all other Owners, their family members, guests, lessees, agents and invitees, which easement shall be appurtenant to, and shall pass with title to each Owner's Lot. This right shall be subject to the fol1owing conditions and limitations:

A. The right and duty of the Association to reasonably limit the number of guests, invitees or lessees of an Owner using the Association Property.

B. The right and duty of the Association to levy Assessments against each Lot for the purpose of maintaining, repairing and replacing the Association Property and facilities thereon in compliance with the provisions of these CC&Rs and the restrictions on portions of the Committed Property from time to time recorded by the Declarant.

C. The right and duty of the Association to levy Neighborhood Assessments (if not done by a Neighborhood Association in accordance with these CC&Rs) against each Lot in a particular Neighborhood for the purpose of maintaining the lawns and landscaping or any other area on the Lots if required to do so by these CC&Rs and any Supplemental Declaration.

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D. The right of the Association to establish uniform rules and regulations pertaining to the use of the Association Property.

E. The right of the Association to establish uniform rules and regulations pertaining to the Lots for the purposes of enhancing the aesthetic uniformity of the Committed Property.

F. The right of the Association in accordance with its Articles, Bylaws, and these CC&Rs, with the vote or written assent of two-thirds (2/3) of the total voting interests, to borrow money for the purpose of improving the Association Property and facilities thereon, and, in aid thereof, to mortgage, pledge, or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred, provided that the rights of such mortgagee shall be subordinated to the use rights of the Owners.

G. The right of the Association to dedicate, release, alienate, or transfer all or any part of the Association Property to any public agency, special district, CDD authority, or utility for such purposes and subject to such conditions as may be agreed to by the Owners and Declarant. No such dedication, release, alienation, or transfer shall be effective unless Members entitled to cast two-thirds (2/3) of the total voting interests agree to such dedication, release, alienation or transfer; provided, however, that no such vote shall be required with respect to the public dedication of any Street, Drive. Road and/or Roadway which is not titled in the name of the Association.

H. Except with respect to those services and areas for which Dec1arant has retained an exclusive easement over portions of the Committed Property in Section 12 of this Article, the right of the Association to grant easements, licenses, permits, rights-of-way or strips of land, where necessary. for utilities, sewer facilities, cable television, and other services over the Association Property to serve the Association Property and other portions of the Committed Property without vote of the Owners.

I. Except with respect to those services and areas for which Declarant has retained an exclusive easement over portions of the Committed Property in Section 12 of this Article, the right of the Association to grant or dedicate to any governmental agencies and/or to any utility companies, and to reserve, easements and rights-of-way, in, through, under, over and across the Association Property for the installation, maintenance and inspection of lines and appurtenances for public or private water, sewer and drainage development of the Committed Property, subject at all times to the terms and conditions of any SJRWMD permits and/or conservation easements.

J. The right of the Declarant and Declarant's officers, directors, partners, employees, agents, licensees, and invitees to the nonexclusive use of the Association Property and the facilities thereon, without charge, for sales, display, access, ingress, egress, construction, and exhibit purposes.

K. The right of the Association, by action of the Board, to reconstruct, replace, or refinish any Improvement or portion thereof upon the Association Property, in accordance with the original design, finish, or standard of construction of such Improvement.

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L. The right of the Association to replace destroyed trees or other vegetation and plant shrubs, and ground cover upon any portion of the Association Property.

M. The right, however not the duty, of the Association by action of the Board to seek the vacation of publicly dedicated streets, if any, upon the Committed Property.

N. The easements provided elsewhere in these CC&Rs, designated on the Plat, or on the Additional Plat, if any, including, but not limited to, those set forth in this Article IV.

O. The right of the Association to provide for the maintenance, preservation and architectural control of Lots and other properties as set forth in these CC&R.s and the corresponding right to enforce such right and impose fines and penalties for any violation thereof.

P. All of the rights of the Club Property Owner set forth in the CC&Rs.

Q. All provisions set forth in the Bena Collina Documents.

Section 2. DELEGATION OF USE. Any Owner may delegate, in accordance with the Bylaws, his/her right of enjoyment to the Association Property to the members of his family, or to the lessees who reside in his/her Home, subject to all of the rules and regulations presently in effect and any which may become effective in the future, and further subject to reasonable regulation by the Board.

Section 3. RECOGNITION OF EXISTING EASEMENTS. Each Owner, by acceptance of a deed or other instrument of conveyance, recognizes and consents to the easements reserved and/or granted with respect to the Committed Property under these CC&Rs and those other easements and restrictions which are of record at the time of recording of these CC&Rs.

LOTS 82 THROUGH 85, LOT 89, LOTS 90 THROUGH 103, LOTS 182 THROUGH l 83, LOTS 219 THROUGH LOT 225 AND LOTS 248 THROUGH LOT 250 AS DESCRIBED ON THE PLAT OF BELLA COLLINA WEST ARE AFFECTED BY EASEMENTS PER LAKE HIGHLANDS CO. PLAT, AS RECORDED IN PLAT BOOK 3, PAGE 51, PUBLIC RECORDS OF LAKE COUNTY, FLORIDA. SAID LOTS ARE SUBJECT TO. RESTRICTIONS SET FORTH IN AGREEMENT RECORDED CONCURRENTLY WITH THE PLAT OF BELLA COLLINA WEST IN OFFICIAL RECORDS BOOK 2781, PAGE 563, OF THE PUBLIC RECORDS OF LAKE COUNTY. ANY OWNER OF SAID LOTS EXPRESSLY ACKNOWLEDGES THE EXISTENCE OF SUCH EASEMENTS AND BY ACCEPTANCE OF A DEED TO SAID LOTS EXPRESSLY CONSENTS TO THE DECLARANT TAKING ANY AND ALL ACTIONS DECLARANT MAY DEEM APPROPRIATE WlTH REGARD TO THE ABANDONMENT, MODIFICATION, OR RELOCATION OF SUCH EASEMENTS. OWNERS AGREE TO EXECUTE ANY DOCUMENTS NECESSARY TO FURTHER DECLARANT'S RESERVED RIGHTS UNDER THIS SECTION.

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perpetuity over the property described in: A) the Conservation Easement recorded in Official Records Book 2519, Pages 105-127, as amended by the Amendment to and Partial Release of Conservation Easement recorded in Official Records Book 2754, Pages 1117-1129 ( "Bella Collina Conservation Easement"), and B) the Conservation Easement recorded in Official Records Book 2782, Pages 139-165, all of the Public Records of Lake County, Florida ("Bella Collina West Conservation Easement"). The Easements are attached hereto as Exhibit "E". Declarant granted the Bella Collina Conservation Easement as a condition of Drainage Permit number issued by the SJRWMD, and Declarant granted the Bella Collina West Conservation Easement as a condition of Drainage Permit number 4-069- 86624-1 issued by the SJRWMD. Both Conservation Easements were granted by Declarant solely to offset adverse impacts to natural resources, fish and wildlife, and wetland functions:

(1) Purpose. The purpose of the Conservation Easements is to assure that certain conservation easement areas will be retained forever in their existing natural condition and to prevent any use of such conservation easement areas that will impair or interfere with the environmental value of these areas.

(2) Prohibited Uses. Any activity in or use of the conservation easement areas inconsistent with the purpose of the Conservation Easements is prohibited. The Conservation Easements expressly prohibits the following activities and uses:

a. Constructing or placing buildings, roads, signs, billboards or other advertising, utilities or other structures on or above the ground;

b. Dumping or placing soil or other substance or material as landfill or dumping or placing of trash, waste or unsightly or offensive materials;

c. Removing or destroying trees, shrubs, or other vegetation;

d. Excavating, dredging or removing loam, peat, gravel, soil, rock or other materials or substances in such a manner as to affect the surface;

e. Surface use, except for purposes that permit the land or water area to remain predominantly in its natural condition;

f. Activities detrimental to drainage, flood control, water conservation, erosion control, soil conservation, or fish and wildlife habitat preservation;

g. Acts or uses detrimental to such retention of land or water areas; and

h. Acts or uses detrimental to the preservation of the structural integrity or physical appearance of sites or properties of historical, architectural, archaeological, or cultural significance.

(3) Boats. All boats must be stored within an Owner's garage or within an area designated by the Declarant for boat storage; provided, however, the Declarant is prohibited from providing boat storage facilities for Owners within the conservation easement areas. Lake

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Lot Owners owning boat docks constructed in accordance with the Bella Collina Conservation Easement may maintain their boat overnight at such boat dock provided that such Owner has installed and utilizes a boat lift that raises the boat fully and completely out of the water. No overnight boat mooning to the boat docks will be allowed. This condition solely relates to the property burdened by the Bella Coltina Conservation Easement.

(4) Responsibilities. The Declarant, its successors and assigns, are responsible for the periodic removal of trash and other debris which may accumulate in the conservation easement areas.

(5) Rights of St. Johns River Water Management District. To accomplish the purposes stated in the Conservation Easements, the Declarant conveyed the following rights to the SJRWMD:

a. To enter upon and inspect the conservation easement areas in a reasonable manner and at reasonable times to determine if Declarant or its successors and assigns are complying with the covenants and prohibitions contained in the Conservation Easements.

b. To proceed at law or in equity to enforce the provisions of the Conservation Easements and the covenants set forth herein, to prevent the occurrence of any of the prohibited activities set forth herein, and require the restoration of areas or features of the conservation easement areas that may be damaged by any activity inconsistent with the Conservation Easements.

(6) Amendment. The provisions of the Conservation Easements may not be amended without the prior written approval of the SJRWMD.

Section 5. EASEMENTS FOR VEHICULAR TRAFFIC AND GOVERNMENTAL SERVICES. In addition to the general easements for use of the Association Property reserved herein, there shall be, and Declarant hereby reserves, grants, and covenants for itself and all future Owners, their family members, guests, invitees and lessees, Institutional Mortgagees of the Committed Property (or portions thereof), and to the Association, that all of the foregoing shall have a perpetual nonexclusive easement for vehicular traffic over (i) all streets dedicated to the public use, if any (as well as alcoves, cul de sacs, and other private, paved areas abutting or serving the same), and (ii) any private Streets, Drives, Roads and/or Roadways within or upon the Committed Property. Additionally, there shall be a perpetual nonexclusive easement over any private Streets, Drives, Roads and/or Roadways within or upon the Committed Property for the provision of governmental services, including, but not limited to, police, fire, health, sanitation and other public services, including reasonable rights of access for persons and equipment necessary for the City. County, or other appropriate agencies, franchises or governmental agencies to provide such services.

Section 6. EASEMENTS FOR PEDESTRIAN TRAFFIC. In addition to the general easements for use of the Association Property reserved herein, there shall be, and Declarant hereby reserves, grants, and covenants for itself and all future Owners, their family members, guests, invitees and lessees, Institutional Mortgagees of the Committed Property (or portions thereof), and to the Association, that all of the foregoing shall have a perpetual nonexclusive

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easement for pedestrian traffic over the Lake Apopka Trail and the Pine Lake Trail, such trails being further described on the Wetland/Surface Water Impact and Mitigation Table dated May 2002, a copy of which is attached as Exhibit "B" to the Bella Collina Conservation Easement attached hereto as Exhibit .. E", subject to the provisions of these CC&Rs and the rules, regulations, and permits of the SJRWMD, and all other applicable governmental agencies.

Section 7. EASEMENTS FOR CONSTRUCTION OF BOAT DOCKS. Declarant hereby reserves, grants, and covenants for itself and all future Lake Lot Owners permitted to construct boat docks in accordance with the Bella Collina Conservation Easement attached hereto as Exhibit "E," that all of the foregoing shall have a perpetual nonexclusive easement for construction of a boardwalk and associated boat dock within the conservation easement areas, buffer areas, or Lake Bank Zones in the rear of the Lake Lot Owners' lots; provided, however, the construction of such facilities shall be subject to the provisions of these CC&Rs and the rules, regulations, and permits of the SJRWMD, and all other applicable governmental agencies. Declarant hereby reserves, grants, and covenants for itself and all future Owners, their family members, guests, invitees and lessees, Institutional Mortgagees of the Committed Property (or portions thereof), and to the Association, that all of the foregoing shall have a perpetual nonexclusive easement to move across such facilities should such facilities impede normal pedestrian traffic within the Lake Apopka Trail or the Pine Lake Trail.

Section 8. ACCESS EASEMENT. Declarant hereby reserves perpetual, nonexclusive easements of ingress and egress over and across (i) any and all streets dedicated to the public use. if any (as well as alcoves, cul de sacs, and other private, paved areas abutting or serving the same), and (ii) any private Streets, Drives, Roads and/or Roadways and driveways within or upon the Committed Property and all other portions of the Committed Property which are necessary or convenient for enabling DecJarant or Club Property Owner to carry on the work referred to in these CC&Rs, which easements shall be for the use of Declarant, Club Property Owner, Declarant's or Club Property Owner's employees, contractors and agents, Declarant's successors and assigns, Owners; and the respective lessees, employees, agents, invitees, and licensees of Declarant, Club Property Owner and Owners.

Section 9. GRANT AND RESERVATION OF EASEMENTS. Declarant hereby reserves and grants the following perpetuaI, nonexclusive easements over and across the Committed Property as covenants running with the Committed Property for the benefit of the Owners, the Association, and Dedarant as hereinafter specified for the following purposes:

A. Utility and Services Easements. Except with respect to those services and areas for which Declarant has retained an exclusive easement over portions of the Committed Property in Section 12 of this Article, all of the Committed Property shall be subject to a platted or as-built easement or easements to provide for: (a) installation, service, repair and maintenance of the equipment and lines required to provide utility services to the Association Property and the Lots, including, but not limited to, power, lights, cable television, telephone, gas, water, sewer and drainage, and (b) governmental services, including, but not limited to, police, fire, health, sanitation and other public service personnel, including reasonable rights of access for persons and equipment necessary for such purposes for the benefit of the appropriate utility companies, agencies, franchises or governmental agencies.

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B. Easement for Encroachment. All of the Committed Property shall be subject to an easement or easements for encroachment in favor of each Owner in the event any portion of his/her Home or appurtenant Improvements installed by Declarant or Builder such as stucco, a fence or underground footer now or hereafter encroaches upon any of the Lots as a result of minor inaccuracies in survey or construction, by design, or due to settlement or movement. Such encroaching Improvements installed by Declarant or Builder shall remain undisturbed for so long as the encroachment exists. Any easement for encroachment shall include an easement for the maintenance and use of the encroaching Improvements in favor of the Owner thereof or his designees.

C. Easement to Enter Upon Lots. An easement or easements for ingress and egress in favor of the Association, including the Board or the designee of the Board, to enter upon the Lots for the purposes of fulfilling its duties and responsibilities of ownership, maintenance and/or repair in accordance with the Bella Collina Documents, including, by way of example, the making of such repairs, maintenance or reconstruction as are necessary for the Association Property, to maintain, in some cases, an Owner's Lot and to maintain any Lot in the event the Owner thereof fails to do so.

D. Easement Over Association Property. An easement of enjoyment in favor of all Owners, their family members, guests, invitees and lessees in and to the Association Property which shall be appurtenant to and shaJI pass with title to every Lot in the Committed Property, subject to the following: (1) the right of the Association to suspend the right to use the Association Property of any Owner for any period during which Assessments against his Lot remain unpaid, subject to applicable laws and the notice and hearing provisions in Article X, Section 1 herein;

(2) Except with respect to those services and areas for which Declarant has retained an exclusive easement over portions of the Committed Property in Section 12 of this Article, the right of the Association to grant permits, licenses and easements over the Association Property for utilities and other purposes reasonably necessary or useful for the proper maintenance or operation of the Committed Property;

(3) the rights and easements reserved in these CC&Rs for the benefit of the Club Property and the Equestrian Property; and

(4) all provisions set forth in the Bella Collina Documents.

E. Drainage and Irrigation Easement. An easement for drainage, flowage and irrigation over, under and upon the Committed Property, including each of the Lots, in favor of the Association and each of the Owners, including, but not limited to, reasonable rights of access for persons and equipment to construct, install, maintain, alter, inspect, remove. relocate and repair the water drainage system, flowage pipes and irrigation pipes. There is hereby further reserved for the benefit of Declarant, the Association, and their respective agents, employees, successors, and assigns ("Benefited Parties") a perpetual non-exclusive easement over, across and on the of all streets, roads and all unimproved portions of the Association

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Property and all areas of the Drainage System for access to construct, install, inspect, operate, maintain, repair or replace the Drainage System. By this easement, the Benefited Parties shall have the right to enter upon any portion of any portion of the Committed Property, including any Lot, which is a part of the Drainage System, at a reasonable time and in a reasonable manner, to operate, maintain or repair the Drainage System as required by the SJRWMD permit. Additionally, the Benefited Parties shall have a perpetual nonexclusive easement for drainage, stormwater collection, retention and detention over, upon and within the entire Drainage System and all other drainage easements shown on each plat or otherwise reserved, declared or created pursuant to these CC&Rs. No person shall alter the drainage flow of the Drainage System, including buffer areas or swa1es, without the prior written approval of the SJRWMD.

F. Drainage System Encroaclunent Easement. An easement for encroachment over, under and upon the drainage easements located within the Lots, as designated on the Plat and Additional Plat, if any, in favor of (i) the Owner of the Lot upon which the drainage easement is located for the existence of any driveway and/or sidewalk or irrigation system or part thereof, and (ii) the Association for reasonable rights of access for persons and equipment to construct, install, maintain, alter, inspect, remove, relocate and repair any driveway and/or sidewalk, or irrigation system or part thereof installed or located thereon. In the event the Association requires access to any Drainage System improvements within a drainage easement located within a Lot upon which any such driveway and/or sidewalk or irrigation system encroaches, the Association has the obligation, at its own cost and expense, to remove and replace any such encroachment, and to return it to its permitted condition immediately preceding such removal and replacement once access to the drainage easement is no longer required. The flowage easements providing for drainage run between each of the Lots parallel to and over the side lot line thereof, draining from the rear to the front of the Lots.

Section 10. HORSE TRAIL EASEMENT. There is hereby created, declared and reserved for the benefit of the Declarant and the owner and/or operator from time to time of the Equestrian Property and their respective employees, agents, licensees, invitees, members and guests a non-exclusive horse trail easement over and upon all horse trail easement areas shown on the Plats, any Additional Plats or other recorded instruments of the Committed Property, or as any horse trails easements may otherwise be granted from time to time. The owner of the Equestrian Property shall have the right to cause the horse trail easement areas to be specifically described by metes and bounds legal descriptions, and the Owners and Association shall cooperate in executing and recording appropriate easement agreements with respect thereto. All vehicles traveling on the roads within the Committed Property shall yield to horses at crossings where horse trail easements intersect with said roads.

Section 11. ASSIGNMENTS. The easements reserved hereunder may be assigned by Declarant or the Association in whole or in part to any city, county or state government or agency thereof, or any duly licensed or franchised public utility, or any other designee of Declarant. The Owners hereby authorize Declarant and/or the Association to execute, on their behalf and without further authorization, such grants of easement or other instruments as may from time to time be necessary to grant easements over and upon the Committed Property or portions thereof in accordance with the provisions of these CC&Rs.

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Section 12. RESERVATION OF EXCLUSIVE EASEMENTS FOR TELECOMMUNICATIONS AND RELATED SERVICES. Notwithstanding anything to the contrary contained in Section 9 of Article TV or elsewhere in the CC&Rs, Declarant hereby reserves to itself, its successors or assigns, the following perpetual exclusive easements in, under, along and across the properties described in the plats of Bella Collina East and Bella Collina West, more particularly described in Exhibit "A", as covenants running with such Additional Property described on Exhibit "A'', for the benefit of the Declarant to provide for (a) installation, service, repair and maintenance of equipment and lines to provide telecommunication and other high tech services, including but not limited to, telephone, cable television, internet, monitored alarm system and other data transmission services; and (b) reasonable rights of ingress and egress on, along and across the Lots, for such persons, contractors or other designees of Declarant, its successors and assigns. It is Declarant's intent that the Committed Property and any Additional Property to be added by Declarant wm be fully wired for fiber optics to each Home in order to create a technologically advanced and integrated ("SMART") subdivision and Declarant intends to market the Committed Property as such to prospective purchasers. As such, Declarant hereby reserves and retains for the benefit of Declarant, its successors or assigns, the exclusive right to enter into long term contracts with providers of such telecommunication and other high tech services, including without limitation hereby, telephone, cable television, internet, monitored alarm system, fiber optic related communications, and data transmission services as Declarant, its successors or assigns may elect and upon such terms and conditions as Declarant, its successors or assigns deems appropriate in its sole and absolute discretion. Notwithstanding anything to the contrary contained in these CC&Rs, to the extent the same shall not conflict with or violate any applicable law or any existing contract or agreement, any provider of such telecommunications and other high tech services that Declarant, its successors or assigns enters into such an agreement with shall be the exclusive and only third party provider of the telecommunications services within the Committed Property that are the subject of such agreement. This exclusivity to the third party provider shall be of no force and effect and inapplicable to the particular service, if there is a default by such provider under the agreement which allows Declarant, its successors or assigns to terminate such agreement or if such agreement has been terminated due to a default. The Declarant, its successors or assigns shall be entitled to compensation for allowing the third party provider use and access of its reserved easements hereunder and any benefits or services resulting therefrom.

Section 13. CLUB OPERATIONS. Neither Declarant, Association, nor any Owner may exercise their respective rights under any easement reserved in this Article or elsewhere in these CC&Rs in a manner that would materially and adversely impact the operation of the Club Property.

Section 14. TERMINATION OF EASEMENT RIGHTS. Notwithstanding anything in these CC&Rs to the contrary, all easement rights reserved or granted to Declarant over and across a Lot, other than those exclusive easement rights granted in Section 12 of the Article N herein, unless previously assigned by Declarant, shall terminate on the date on which "Completion of Construction", as defined in Article X, Section 19 of these CC&Rs. has occurred on all Lots. In addition, the easement rights granted or reserved by Declarant hereunder are not to be construed as creating an affinna6ve obligation to act on the part of Declarant. Provided, however, notwithstanding the possibility that the Declarant and the Club Property Owner may be the same

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entity from time to time, nothing in this paragraph shall act to terminate easement rights reserved or granted to the Club Property Owner as such easement rights are perpetual.

ARTICLE V

MEMBERSHIP AND VOTING RlGHTS IN THE ASSOCIATION; BOARD;

DURATION OF THE ASSOCIATION

Section 1. MEMBERSHIP AND VOTING RIGHTS. Membership in the Association shall be established and terminated as set forth in the Articles. Each Member shall be entitled to the benefit of, and be subject to, the provisions of the Bella Collina Documents. The voting rights of the Members shall be as set forth in the Articles.

Section 2. BOARD. The Association shall be governed by the Board which shall be appointed, designated or elected, as the case may be, as set forth in the Articles.

Section 3. DURATION OF ASSOCIATION. The duration of the Association shall be perpetual, as set forth in the Articles.

ARTICLE VI

COVENANT TO PAY ASSESSMENTS; ESTABLISHMENT OF LIENS; COLLECTION OF ASSESSMENTS; COLLECTION BY DECLARANT; CERTAIN RIGHTS OF DECLARANT AND INSTITUTIONAL MORTGAGEES

Section 1. AFFIRMATIVE COVENANT TO PAY ASSESSMENTS. In order to: (i) fulfill the terms, provisions, covenants and conditions contained in the Bella Collina Documents; and (ii) maintain, operate and preserve the Association Property for the use, safety. welfare and benefit of the Members and their family members, guests, invitees and lessees, there is hereby imposed upon each improved Lot, and Unimproved Lot, and each improved Lot Owner and Unimproved Lot Owner, the affirmative covenant and obligation to pay to the Association, commencing from and after the Assessment Commencement Date as defined and set forth in Section 7 of Article V herein, all Assessments, including, but not limited to, the Base Lot Assessments, Lot Type Maintenance Assessments, Neighborhood Assessments, if any, and Special Assessments. Each Owner, by acceptance of a deed or other instrument of conveyance conveying a Lot within the Committed Property, whether or not it shall be so expressed in such deed or instrument, shall be obligated and agrees to pay to the Association all Assessments in accordance with the provisions of the Bella Collina Documents. The following expenses of the Association are hereby declared to be Operating Expenses which the Association is obligated to assess and collect, and which the Owners are obligated to pay as provided herein or as may be otherwise provided in the Bella Collina Documents: (1) any and all taxes and tax liens which may be assessed or levied at any and all times against the Association Property or against any and all persona) property or Improvements thereon, including, but not limited to, taxes imposed by the CDD for the infrastructure facilities; (2) all charges levied for utilities providing services for the Association Property, such as water, gas, electricity, telephone, cable television, sanitation, sewer and any type of utility or any other type

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of service charge which is not separately billed to an Owner; (3) the premiums on policies of insurance including, but not limited to, liability, casualty and directors and officers liability insurance for the Association Property; ( 4) any sums necessary for the maintenance and repair of the Association Property and all Improvements located thereon; (5) administrative and operational expenses; (6) any and all expenses deemed to be Operating Expenses by the Association; (7) fees and costs for the management, maintenance, improvement and beautification of landscaping and stormwater drainage and retention features on the Committed Property; (8) fees and costs for the management, maintenance, improvement and operation of the Utility Systems; (9) operation, maintenance and repair of the Drainage Systems including, but not limited to work within retention areas, drainage structures and drainage easements; (10) reserves for replacements; and (11) fees and costs incurred by the Association in connection with providing Communication Services as defined for Section 7 of Article VI of these CC&Rs.

Any expense which is required by the Declaration to be the matter of Special Assessment shall not be deemed to be an Operating Expense. Expenses which are required to be the matter of Special Assessment include without limitation, the following: the cost of reconstructing, replacing or improving the Association Property or any portion thereof or Improvements thereon; any casualty loss affecting the Association or the Association Property to the extent such loss exceeds the insurance proceeds, if any, receivable by the Association as a result of such loss; any judgment against the Association (or against a Director or Directors if and to the extent such Director is, or such Directors are, entitled to be indemnified by the Association therefor pursuant to the Articles) to the extent such judgment exceeds the insurance proceeds, if any, received by the Association as a result of such judgment, or an agreement by the Association (or such Director or Directors to whom indemnification is owed) to pay an amount in settlement of a lawsuit against it (or such Director or Directors) to the extent such settlement exceeds the insurance proceeds, if any, received by the Association as a result of such settlement agreement; and legal fees and costs (including, without limitation, attorneys and paralegal fees and court costs) incurred by the Association in connection with litigation (whether incurred for the preparation, filing, prosecution or settlement thereof or otherwise), except Legal Fees incurred by the Association in connection with the collection of Assessments or other charges which Owners are obligated to pay pursuant to the Bella Collina Documents or the enforcement of the use and occupancy restrictions contained in the Bella Collina Documents.

The Operating Expenses with respect to the Association Property are payable by each Owner to the Association notwithstanding the fact that Declarant may not have as yet conveyed title to the Association Property to the Association

Section 2. NEIGHBORHOOD ASSESSMENTS. Owners of Homes and/or Lots in certain Neighborhoods that may now or in the future, be submitted to these CC&Rs by Supplemental Declaration, may be obligated to pay Neighborhood Expenses depending upon the level of services provided to the Homes and Lots in the Neighborhood by the Association. For example, the Association may provide lawn and landscape maintenance or exterior building maintenance in certain Neighborhoods, in which case the Association shall assess and collect. and which the Owners are obligated to pay, Neighborhood Assessments as provided herein or as may be otherwise provided in the Bella Collina Documents or in any Supplemental Declaration. It shall be the duty of the Board to prepare a separate budget covering the estimated Neighborhood Expenses to be incurred by the Association for each Neighborhood on whose behalf

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Neighborhood Expenses are expected to be incurred during the coming year. The Board shall be entitled to set such budget only to the extent that these CC&Rs, Supplemental Declaration or Bylaws specifical1y authorizes the Board to assess certain costs as a Neighborhood Assessment. Any Neighborhood may request that additional services or a higher level of services be provided by the Association, and in such case, any additional costs shall be added to such budget. Such budget may include a capital contribution establishing a reserve fund for repair and replacement of capital items within the Neighborhood, as appropriate.

The Board shall cause a copy of such budget and notice of the amount of the Neighborhood Assessment to be levied on each Home and/or Lot in the Neighborhood for the coming year to be delivered to each Owner in the Neighborhood at least thirty (30) days prior to the beginning of the fiscal year.

If the Board fails for any reason to determine the budget for any year, then and until such time as a budget shall have been determined as provided herein, the budget in effect for the immediately preceding year, with a ten (10%) percent increase, shall be the budget for the current year.

Neighborhood Assessments are in addition to any assessments for Operating Expenses levied by a Neighborhood Association for those Neighborhoods which are administered by a Neighborhood Association. The Association reserves the right to review and approve or disapprove the budgets promulgated by Neighborhood Associations.

Section 3. ESTABLISHMENT OF LIENS. Each Assessment (including Neighborhood Assessments, if applicable) against a Lot, together with Interest thereon and costs of collection, including, but not limited to, Legal Fees, shall be the personal obligation of the Owner of such Lot. Any and all Assessments made by the Association in accordance with the provisions of the Bella Collina Documents with Interest thereon and costs of collection, including, but not limited to, Legal Fees, are hereby declared to be a charge and continuing lien upon each Lot against which each such Assessment is made. Said lien shall be effective only from and after the time of the recordation in the Public Records of the County of a written, acknowledged statement by the Association setting forth the amount due to the Association as of the date the statement is signed. Upon full payment of all sums secured by that lien, the party making payment shall be entitled to a satisfaction of the statement of lien in recordable form. Notwithstanding anything to the contrary herein contained, in the event an Institutional Mortgagee of record obtains title to a Lot as a result of foreclosure of its first mortgage or deed in lieu of foreclosure, such acquirer of title, its successors or assigns, shall not be liable for the share of Assessments pertaining to such Lot or chargeable to the former Owner thereof which became due prior to the acquisition of title as a result of the foreclosure or deed in lieu thereof, unless the Assessment against the Lot in question is secured by a claim of lien for Assessments that is recorded prior to the recordation of the mortgage which was foreclosed or with respect to which a deed in lieu of foreclosure was given.

Section 4. COLLECTION OF ASSESSMENTS. In the event any Owner shall fail to pay any Assessment, or installment thereof, charged to such Owner within fifteen (15) days after the same becomes due, then the Association, through its Board, shall have any and al1 of the following remedies to the extent permitted by law, which remedies are cumulative and which remedies are not in lieu of, but are in addition to, all other remedies available to the Association:

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1. To accelerate the entire amount of any Assessment for the remainder of the calendar year notwithstanding any provisions for the payment thereof in installments.

2. To advance on behalf of the Owner(s) in default funds to accomplish the needs of the Association up to and including the full amount for which such Owner(s) is liable to the Association and the amount or amounts of monies so advanced, together with Interest and all costs of collection thereof, including, but not limited to, Legal Fees, may thereupon be collected by the Association from the Owner(s) and such advance by the Association shall not waive the default.

3. To file an action in equity to foreclose its lien at any time after the effective date thereof as provided in Section 3 hereinabove. The lien may be foreclosed by an action in the name of the Association in like manner as a foreclosure of a mortgage on real property.

4. To file an action at Jaw to collect said Assessment plus Interest and all costs of collection thereof, including, but not limited to, Legal Fees, without waiving any lien rights or rights of foreclosure in the Association.

5. To charge Interest on such Assessment from the date it becomes due, as well as a late charge of One Hundred Dollars ($100) by the Association to defray additional collection costs.

6. To suspend the use rights of the Owner(s) in default to the Association Property, subject to the limitations of applicable Jaw and the Notice and Hearing provisions in Article X, Section 1 herein.

7. To suspend the right of the Owner(s) in default to vote on any matter on which Owners have the right to vote if such Owner is delinquent in payment of assessments for more than ninety (90) days.

8. To use the services of a collection agency for collection of delinquent accounts and to charge and impose a lien against the delinquent Owner for such costs. All payments shall be first applied to Interest, administrative late fees, costs, and reasonable attorneys' fees incurred in collection including any incurred in all bankruptcy and probate proceedings, and then to the Assessment payment first due.

Notwithstanding any provision of this Section to the contrary, the Board shall have the right to waive any late fees or Interest that accrue as a result of delinquent payment of Assessments.

Section 5. COLLECTION BY DECLARANT. ln the event for any reason the Association shall fail to collect the Assessments, Declarant shall at all times have the right (but not the obligation): (i) to advance such sums as the Association could have advanced as set forth above; and (ii) to collect such Assessments and, if applicable, any such sums advanced by Declarant, together with Interest and costs of collection, including, but not limited to, Legal Fees.

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Section 6. RIGHTS OF DECLARANT AND INSTITUTIONAL MORTGAGEES TO PAY ASSESSMENTS AND RECEIVE REIMBURSEMENT. Declarant and any Institutional Mortgagee(s) shall have the right, but not the obligation, jointly or individually, and at their sole option, to pay any of the Assessments which are in default and which may or have become a charge against any Lot(s). Further, Declarant and any Institutional Mortgagee shall have the right, but not the obligation, jointly or individually, and, at their sole option, to pay insurance premiums or fidelity bond premiums or other required items of Operating Expenses on behalf of the Association in the event the same are overdue and when lapses in policies or services may occur. Declarant and any Institutional Mortgagee overdue Operating Expenses on behalf of the Association will be entitled to immediate reimbursement from the Association plus Interest and any costs of collection including, but not limited to, Legal Fees, and the Association shall execute an instrument in recordable form to this effect and deliver the original of such instrument to each Institutional Mortgagee who is so entitled to reimbursement and to Declarant if Declarant is entitled to reimbursement.

Section 7. COMMUNICATIONS SYSTEM. The Association shall have the right to enter into an agreement or agreements ("Communications Agreement") for telecommunication and other high tech services, including without limitation hereby, telephone, cable television, internet, monitored alarm system, fiber optic related communications, and data transmission services ("Communications Services") for Homes with the provider of telecommunications that enters into an agreement with the Declarant as set forth in Section 12 of Article IV herein. Any and all costs and expenses incurred by the Association under or pursuant to any Communications Agreement(s) entered into by the Association for Communications Service will be assessed against all Improved Lot Owners. It is contemplated that the monitored alarm service portion of the Communications Services may include features in addition to perimeter monitored alarm services such as, but not limited to, a smoke/heat detection system, push button panels for emergency calls or other features. Notwithstanding anything to the contrary contained in these CC&Rs, the costs and expenses charged to the Association under the Communications Agreement shall be apportioned equally, but only in those Hornes with respect to which the Association is being charged under or pursuant to the Communications Agreement except to the extent, if any, that any Owner elects to receive an "Optional Service" (being a service not automatically received by all Owners entitled to receive Communications Service pursuant to the Communications Agreement). Each Owner who receives an Optional Service, if any, shall be responsible for paying for the costs thereof. The foregoing shall in no way obligate Declarant, the Association, their successors or assigns to enter into a Communications Agreement or otherwise provide the Communications Services described in this Section 7.

Section 8. RELATIONSHIP OF ASSOCIATION AND NEIGHBORHOOD ASSOCIATIONS.

A. Collection of Assessments. Neighborhood Associations, if any, shall initially collect all Assessments and other sums including the Neighborhood Assessment due the Neighborhood Association from the members thereof. The Neighborhood Association will remit the Assessments so collected pursuant to such procedures as may be adopted by the Association. The sums so collected shall be applied first to the Assessments of the Association and then to those of the collecting Neighborhood Association. No sums collected by a Neighborhood

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Association on behalf of the Association shall be deemed a common expense of the collecting Neighborhood Association.

Neighborhood Associations shall be required to enforce liens or take any other actions with regard to delinquencies in Assessments payable to the Association unless the Association gives them written notice of its election not to have them do so. All of the Association's rights of enforcement provided in these CC&Rs shall be deemed to have automatically vested in the applicable Neighborhood Association, but all costs and expenses of exercising such rights shalt nevertheless be paid by the Neighborhood Association (which shall be entitled to receive payment of any such costs and expenses which are ultimately recovered). Notwithstanding the foregoing, the Association retains the power to exercise the enforcement rights on a concurrent basis with the Neighborhood Association.

All Fidelity bonds and insurance maintained by a Neighborhood Association shall reflect any duties performed by it pursuant hereto and the amounts to be received and disbursed by it and shall name the Association as an obligee/insured party for so long as its Assessments are being collected and remitted by the Neighborhood Association.

To the extent lawful, a Neighborhood Association may delegate, or contract for the performance of, any duties performed by it pursuant hereto with a management company approved by the Association, provided that: (i) the Neighborhood Association shall remain ultimately liable hereunder; (ii) the management company, as well as the Neighborhood Association, shall comply with the requirements of the foregoing paragraph; and (iii) the approval of the management company by the Association may be withdrawn by the Association, with or without cause, at any time upon thirty (30) days' prior written notice. Any management agreement or similar contract entered into by the Neighborhood Association shall be subject to the provisions of this Paragraph A.

In the event of a failure of a Neighborhood Association to assess its members for Operating Expenses allocated, the Association shall be entitled to pursue all available legal and equitable remedies against the Neighborhood Association or in addition specially assess the members of the Neighborhood Association for sums due and lien all the Lots in such Neighborhood.

B. Delegation of Other Duties. The Association shall have the right to delegate to a Neighborhood Association, on an exclusive or basis, such additional duties not specifically described in this Section with respect to its Neighborhood as the Association shall deem appropriate. Such delegation shall be made by written notice to the Neighborhood Association, which shall be effective no earlier than thirty (30) days from the date it is given. Any delegation made pursuant hereto may be modified or revoked by the Association at any time.

C. Acceptance of Delegated Duties. Whenever the Association delegates any duty to a Neighborhood Association pursuant to this Article, the Neighborhood Association shall be deemed to have automatically accepted same and to have agreed to indemnify, defend and hold harmless the Association for all liabilities, losses, damages and expenses (including Legal

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Fees) arising from or connected with the Neighborhood Association's performance, non-performance or negligent performance thereof.

D. Non-Performance of Neighborhood Association Duties. In the event a Neighborhood Association fails to perform any duties delegated to or required of lt, under these CC&Rs or to otherwise be performed by it pursuant to a Supplemental Declaration, which failure continues for a period in excess of thirty (30) days after the Association's giving notice thereof, then the Association may, but shall not be required to, assume such duties. In such event, the Neighborhood Association shall not perform such duties unless and until such time as the Association directs it to once again do so.

E. Collection of Assessments by Association. Notwithstanding the foregoing, in the event Lots are not subject to a Neighborhood Association, the Association shall collect all Assessments and other sums due the Association from the Owner(s) of such Lots.

Section 9. INAPPLICABILITY OF ARTICLE TO CLUB PROPERTY AND CLUB PROPERTY OWNER. Neither the Club Property nor Club Property Owner is subject to the provisions of this Article VI.

ARTICLE VII

METHOD OF DETERMINING ASSESSMENTS AND ALLOCATION OF ASSESSMENTS

Section 1. DETERMINING AMOUNT OF ASSESSMENTS. The total anticipated Operating Expenses for each calendar year shall be set forth in the budget ("Budget") prepared by the Board as required under the Bella Collina Documents. If a Neighborhood is administered by a Neighborhood Association, the total anticipated Neighborhood Expense for the Neighborhood each calendar year shall be set forth in a budget prepared by the Board of the Neighborhood Association. If a Neighborhood is not administered by a Neighborhood Association, the total anticipated Neighborhood Expenses for the Neighborhood each calendar year shall be set forth in a budget prepared by the Board of the Association. Each Improved Lot and Unimproved Lot shall be assessed its pro rata portion of the total anticipated Operating Expenses, exclusive of the Lot Type Maintenance Assessment (as defined below) and Neighborhood Expenses, if applicable, which shall be the "Base Lot Assessment" and "Neighborbood Assessment", if applicable as to each Lot.

With respect to that portion of the Committed Property more particularly described on the Bella Collina Plat recorded in Plat Book 51, Pages 31 through 49, inclusive, of the Public Records of the County, the Base Lot Assessment and Neighborhood Assessment shall be based upon the level of service to each Lot and upon the state of the Lot's development, with the Owners of Improved Lots paying the Operating Expenses on a four to one ratio (4:1) compared to the Owners of Unimproved Lots as set forth below. Therefore, the Improved Lot Owners and Unimproved Lot Owners shall share the payment of the Operating Expenses on a ratio of four to one (4:1). Therefore, the total anticipated Operating Expenses (other than those expenses which are properly the subject of Special Assessment) shall be divided by the total number of lmproved Lots multiplied by four (4) plus the number of Unimproved Lots, with the quotient thus arrived

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at being the "Base Lot Assessment" for an Unimproved Lot. Said quotient multiplied by four (4) shall be the Base Lot Assessment for an Improved Lot. The number of Improved Lots and Unimproved Lots shall be adjusted quarterly, as needed, as hereinafter set forth_ At such time as Declarant has completed all of the Homes on all of the Lots, each Lot shall be an improved Lot and the Base Lot Assessment shall be equal for each Lot.

With respect to Lots located in Bella Collina East and Bella Co11ina West, as more particularly described in Exhibit "A'' attached hereto, each Improved Lot and Unimproved Lot shall be assessed the same pro rata portion of the total anticipated Operating Expenses, exclusive of the Lot Type Maintenance Assessment and Neighborhood Expenses, if applicable. In addition to the Base Lot Assessment and Neighborhood Expenses, each Lot shall be assessed a portion of the total Operating Expenses associated with the Association's provision of landscape care and maintenance of Lots, which shall be the "Lot Type Maintenance Assessment." The Lot Type Maintenance Assessment shall be based upon the type of Lot, as such Lot type is established in this paragraph: Lots 399-483, as shown on the Plat, are hereby designated Type "A" Lots; and Lots 1-318, as shown on the Plat, are hereby designated Type "B" Lots. The Declarant reserves the right to re-designate Lots as either Type "A" or Type "B" Lots based on the Declarant's modification of its plan of development for any re-designated Lot. The total anticipated Operating Expenses for each calendar year associated with the Association's provision of landscape care and maintenance of Lots shall be set forth in the Budget and shall be separated into Type A Lot Maintenance Assessments and Type B Lot Maintenance Assessments. Each Lot shall be assessed its pro rata portion of either the Type A Lot Maintenance Assessments or the Type B Lot Maintenance Assessments, as applicable. The Base Lot Assessment and the Lot Type Maintenance Assessment applicable to each Lot shall be collectively referred to as the "Individual Lot Assessment."

Notwithstanding anything in the Bella Collina Documents to the contrary, any Assessment for legal expenses incurred by the Association for lawsuits shall be deemed an Operating Expense which is properly the subject of Special Assessment and not the subject of an Base Lot Assessment, except the legal fees incurred by the Association in connection with the collection of assessments or other charges which Owners are obligated to pay pursuant to the Bella Collina Documents or the enforcement of the use and occupancy restrictions contained in the Bella Collina Documents.

In addition to the general notice of Board meetings required to be given to all Owners in accordance with Section 720.303, Florida Statutes, written notice of the meeting at which the Board shall consider any Special Assessment, Base Lot Assessment, Lot Type Maintenance Assessment, or Neighborhood Assessment, if any shall be provided to all Owners at ]east fourteen (14) days before the meeting, which notice shall include a statement that assessments will be considered at the meeting and the nature of the assessments. Such written notice must be mailed, delivered, or electronically transmitted to the Owners and posted conspicuously on the Committed Property or broadcast on closed·circuit cable television not less than fourteen (14) days prior to the meeting.

Section 2. ASSESSMENT PAYMENTS. Base Lot Assessments, Lot Type Maintenance Assessments, and Neighborhood Assessments, if any, shall be payable quarterly, in advance, on the first day of January, April, July and October of each year, provided, however, at the

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Association's option, Base Lot Assessments, Lot Type Maintenance Assessments, and Neighborhood Assessments, if any, may be payable monthly. Base Lot Assessments, Lot Type Maintenance Assessments, and Neighborhood Assessments, if any, and the quarterly or monthly installments thereof, may be adjusted from time to time by the Board to reflect changes in the number and status of Improved Lots and Unimproved Lots (thus apportioning all such Assessments and installments thereof among all Lots at the time such installment is due) or changes in the Budget or in the event the Board determines that an Assessment or any installment thereof is either less than or more than the amount actually required. When an Unimproved Lot becomes an Improved Lot during a period with respect to which an Assessment or installment thereof has already been assessed, such Improved Lot shall be deemed assessed the amount of such Assessment or installment thereof which was assessed against Improved Lots in existence at the time of such Assessment, prorated from the date the Lot became an Improved Lot through the end of the period in question. If the payment of such Assessment or installment thereof was due at the time the Lot became an Improved Lot or prior thereto, said prorated amount thereof shall be immediately due and payable. Likewise, the amount paid with respect to · such Improved Lot based upon the Lot's status as an Unimproved Lot, prorated from the date the Unimproved Lot became an Improved Lot to the end of the period in question, shall be credited against the amount owed as an Improved Lot.

Section 3. SPECIAL ASSESSMENTS. The Board subject to the notice requirements set forth in Section 1 above, may levy at any time a Special Assessment for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of a capital improvement upon the Association Property, including the necessary fixtures and personal property related thereto, for acquiring Improvements for, or on, the Association Property, for the purpose of covering any insufficiency of assessments to fund the actual monetary needs of the Association over and above the budgeted Assessments, or for any other use or purpose deemed desirable or appropriate by the Board. "Special Assessments" shall also include any other Assessments designated as Special Assessments in the Bella Collina Documents and whether or not for a cost or expense which is included within the definition of "Operating Expenses." Notwithstanding anything to the contrary herein contained, it is recognized and declared that Special Assessments shall be in addition to, and are not part of, any Base Lot Assessment or Lot Type Maintenance Assessment. Any Special Assessments assessed against Lots and the Owners thereof shall be paid by such Owners in addition to any other Assessments and shall be assessed in the same manner as the Base Lot Assessment. Special Assessments shall be paid in such installments or in a lump sum as the Board shall, from time to time, determine. Notwithstanding the foregoing, the levying of any Special Assessment after the Turnover Date shall require the affirmative assent of at least two-thirds (2/3) of all Owners represented in person or by proxy at a meeting called and held in accordance with the Bylaws. Prior to the Turnover Date, a DecJarant controlled Board may make a Special Assessment without such vote of the Owners.

Section 4. LIABILITY OF OWNERS FOR INDIVIDUAL LOT ASSESSMENTS AND NEIGHBORHOOD ASSESSMENTS. IF ANY. By the acceptance of a deed or other instrument of conveyance of a Lot, each Owner thereof acknowledges that each Lot and the Owners thereof are jointly and severally liable for their own Base Lot Assessments, Lot Type Maintenance Assessment, Neighborhood Assessments and their applicable portion of any Special Assessments, as well as for any and all other Assessments for which they are liable, as provided

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for herein. Such Owners further recognize and covenant that they are jointly and severally liable with the Owners of all Lots for the Operating Expenses (subject to any specific limitations provided for herein such as, but not limited to, the limitation with respect to matters of Special Assessment and the limitations on the liability of Institutional Mortgagees and their successors and assigns). Accordingly, subject to such specific limitations, it is recognized and agreed by each Owner, for himself and his heirs, executors, successors and assigns, that in the event any Owner fails or refuses to pay his Base Lot Assessment, Lot Type Maintenance Assessment, or any portion thereof, or his respective portion of any Special Assessment or any other Assessment, then the other Owners may be responsible for increased Base Lot Assessments, Lot Type Maintenance Assessments, or Special Assessments or other Assessments due to the nonpayment by such other Owner, and such increased Base Lot Assessment, Lot Type Maintenance Assessment, or Special Assessment or other Assessment can and may be enforced by the Association and Declarant in the same manner as all other Assessments hereunder as provided in the Bella Collina Documents.

Section 5. WORKING FUND CONTRIBUTION.

A. Each Owner who purchases a Lot from Declarant shall pay to the Association at the time legal title is conveyed to such Owner, a "Working Fund Contribution." The Working Fund Contribution shall be an amount equal to a two months' share of the initial estimated Base Lot Assessment applicable to the Lot at the date of conveyance of the Lot from Declarant to the initial Owner of the Lot. The purpose of the Working Fund Contribution is to assure that the Association will have cash available for initial start-up expenses, to meet unforeseen expenditures and to acquire additional equipment and services deemed necessary or desirable by the Board. Working Fund Contributions may also be used to offset Operating Expenses. Working Fund Contributions are not advance payments of Base Lot Assessments and shall have no effect on future Base Lot Assessments, nor will they be held in reserve. To further ensure that the Association will have sufficient cash available to pay for start-up expenses, Operating Expenses, Neighborhood Expenses and other expenses, Declarant may from time to time advance to the Association the Working Fund Contribution applicable to any Lot(s) prior to the time legal title to such Lot(s) is conveyed to the Owner(s) thereof In the event Declarant advances the Working Fund Contribution applicable to any Lot, then, at the time legal title to such Lot is conveyed lo the Owner thereof, the Working Fund Contribution to be paid by such Owner to the Association pursuant to this Section 5 shall be paid directly to Declarant in reimbursement of the advance, instead of to the Association.

B. Upon the resale of a Lot from an Owner to a new Owner ("Subsequent Owner"), each Subsequent Owner who purchases such a Lot shall pay to the Association at the time legal title is conveyed to such Subsequent Owner, an "Additional Reserve Fund Contribution." The Additional Reserve Fund Contribution shall be an amount equal to a two months' share of the annual Operating Expenses and the annual Neighborhood Expenses applicable to such Lot pursuant to the Budget in effect at the time of closing. All Additional Reserve Fund Contributions shall be deposited upon receipt by the Association in the Association reserve accounts designated by the Board from time to time for acceptance of Additional Reserve Fund Contributions. The purpose of the Additional Reserve Fund Contribution is to assure that the Association reserve accounts will have cash available to meet unforeseen reserve fund expenditures deemed necessary or desirable by the Board. Additional

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Reserve Fund Contributions may not be used to offset Operating Expenses. Additional Reserve Fund Contributions are not advance payments of Base Lot Assessments and shall have no effect on future Base Lot Assessments. lf the Subsequent Owner fails to pay the Additional Reserve Fund Contribution on acceptance of title to a Lot as required, the Association shall have the right to demand immediate payment of the unpaid Additional Reserve Fund Contribution. The Additional Reserve Fund Contribution due shall constitute a lien upon the applicable Lot and Home with the same force and effect as liens for Operating Expenses.

Section 6. WAIVER OF USE. No Owner, other than Declarant, may exempt himself from personal liability for Assessments duly levied by the Association. No Owner may release the Lot owned by him from the liens and charges hereof either by waiver of the use and enjoyment of the Association Property and the facilities thereon or by abandonment of his Home.

Section 7. DATE OF COMMENCEMENT Of ASSESSMENTS: INITIAL ANNUAL ASSESSMENTS. The Assessments for each Lot shall commence on the date ("Assessment Commencement Date") (i) with respect to Lots existing within that portion of the Committed Property more particularly described on the Bella Collina Plat recorded in Plat Book 51, Pages 31 through 49, inclusive, Public Records of the County, from and after the first conveyance of a Lot from Declarant as evidenced by the recordation of a Deed in the Public Records of the County (in the manner herein set forth); or (ii) with respect to Lots located within Bella Collina East or Bella Collina West, more particularly described on Exhibit "A" hereof, upon completion of all streets and roads providing access to the Lot and the extension of the following applicable utilities to the Lot: electricity, water, sewer, gas, telephone and 24-hour security. Assessments for each such Lot shall be adjusted according to the number of months then remaining in the fiscal year of the Association and the number of days then remaining in the month in which such Assessments commence. The initial Assessments for each Lot in each Additional Property shall be set forth in the pertinent Supplemental Declaration.

Section 8. NOTICE PROCEDURES FOR PROPOSED SALE OF LOT(S). In the event·of a proposed sale of a Lot by an Owner, other than Declarant, and excluding any sale or transfer pursuant to a decree of foreclosure or pursuant to any proceeding in lieu of foreclosure, Owner shall promptly notify the Association in writing of the proposed sale within five (5) days after executing a purchase and sale agreement and provide the name and address of the proposed purchaser and the estimated closing date for the transaction. The Association shall furnish to the Owner and proposed purchaser a certificate in writing setting forth whether the Assessments have been paid. In addition, the Association shall furnish to the proposed purchaser a copy of the CC&Rs and amendments, if any. As a condition to the issuance of the aforementioned certificate and provision of Association documents, Association shall be entitled to charge and co Hect a fee from the Owner for processing any proposed sale or transfer of a Lot and such fee shall be in an amount established by the Board from time to time in its sole discretion. In the event that there are unpaid Assessments owed by the Owner, the Association shall be entitled to exercise all rights and remedies available to it for collection of the Assessments as set forth in Section 4 of Article VI herein. The Owner's failure to pay all unpaid Assessments, and accrued interest thereon, if any, before the closing of the sale of Lot may result in the suspension of certain rights and privileges provided to the new Owner to the extent permitted by applicable law. The Association may delegate its obligation to furnish such certificate and its right to collect the fee for providing such service to a management company hired by the Association.

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Section 9. SUBORDINATlON. The lien of the Assessments provided for by these CC&Rs shall be subordinate to the lien of any mortgage or mortgages now or hereafter placed upon any of the Lots and held by a commercial or savings bank, trust company, credit union, industrial loan association, insurance company, pension fund, or business trust, including but not limited to a real estate investment trust, any other lender regularly engaged in financing the purchase, construction, or improvement of real estate, or any assignee of loans made by such lender, or any private or governmental institution or agency which has insured the loan of any such lender, or any combination of any of the foregoing entities; provided, however, that a sale or transfer of any of the Lots pursuant to a decree of foreclosure, or pursuant to any proceeding in lieu of foreclosure, shaH not relieve such Lot from liability for any Assessments which thereafter become due, nor from the lien of any subsequent Assessment. Said Assessment liens, however, shall be subordinate to the lien of any such mortgage or mortgages hereafter placed upon the Lots subject to Assessment.

Section 10. SUBSIDY. So long as Declarant pays the subsidy called for in this Section 10, Declarant shall be exempt from the payment of any assessments with respect to Lots owned by Declarant. Declarant covenants and agrees that, until not later than when the Declarant's membership in the Association ceases to exist, Declarant shall pay to the Association, as incurred, the balance of the actual operating deficits (excluding the cost of funding deferred maintenance and reserve accounts) after levying and payment of assessments due from Owners other than Declarant pursuant to assessments levied by the Board pursuant to these CC&Rs. The foregoing to the contrary notwithstanding, Declarant shall not pay more than the assessments that Declarant would have been required to pay if the Declarant owned Lots were not exempt At any time, Declarant shall be entitled to terminate, by written notice to the Association, Declarant's obligation to pay the operating deficits of the Association. Following termination or expiration of Declarant's subsidy obligations under this paragraph, Declarant shall pay the applicable per Lot assessment for each then assessable Lot then owned by Declarant prorated for the year in which such payment commences.

Section 11. INAPPLICABILITY OF ARTICLE TO CLUB PROPERTY AND CLUB PROPERTY OWNER. Neither the Club Property nor the Club Property Owner is subject to the provisions of this Article VII.

ARTICLE VIII

ARCHITECTURAL CONTROL BOARD

Section 1. MEMBERS OF THE ACB. The Architectural Control Board, sometimes referred to in these CC&Rs as the "ACB," shall be comprised of no less than three (3) members. The initial members of the ACB shall be designated by Declarant, its successors or assigns shall retain the sole right to appoint and remove all members of the ACB until the date on which a Home is initially constructed on each Lot located within the Committed Property and any Additional Property to be added by the Declarant. After completion of construction of a Home on each Lot located within the Committed Property and any Additional Property to be added by Declarant, or at such earlier time as Declarant may, at its sole option elect, the Board shall have the right to appoint a simple majority of the members of the ACB, and the Declarant shall have the right to appoint all remaining members of the ACB.

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Each new member of the ACB appointed by the Board shall hold office until such time as he has resigned or has been removed or his successor has been appointed, as provided herein. The Board shall have the sole right to appoint and remove all members of the ACB other than those designated by the Declarant. The entity responsible for appointing a majority of the members of the ACB, whether the Declarant, its successors or assigns, or the Board, shall have the right to change the number of members on the ACB so long as there are at least three (3) members.

The members of the ACB need not be Members of the Association or representatives of Members, and may, but need not, include architects, engineers or similar professionals, whose compensation, if any, shall be established from time to time by the Board. The Board may establish reasonable fees to be charged by the ACB for review of applications hereunder and may require such fees to be paid in advance prior to review of any application. In addition, the ACB may retain architects, engineers or other professionals to assist in the review of any application, and the ACB may charge any reasonable fees incurred for such assistance to the applicant. The ACB may also collect from applicants, prior to the commencement of any work. a deposit amount refundable in its entirely to the applicant upon applicant having complied in a satisfactory and timely manner with the requirements of ARTICLE VIII, Section 2 of these CC&Rs. The ACB shall be empowered to retain such portion of said deposit as it, in its sole discretion, shall deem appropriate as penalty for applicant's failure to fulfill such requirements either completely or in a timely fashion. Said deposit may also be retained as compensation for any damage that owner's construction may have caused to adjacent property. Owners shall remain responsible for said damage to the extent that retained deposit does not fully cover said damages.

Section 2. REVIEW OF PROPOSED CONSTRUCTION.

A. The ACB shall approve proposed plans and specifications submitted for its approval only if it deems that the construction, alterations or additions contemplated will not be detrimental to the appearance of the surrounding area of the Committed Property as a whole, and that the appearance of any structure affected thereby will be in harmony with the surrounding structures and is otherwise desirable. The ACB may also issue rules or guidelines setting forth procedures for the submission of plans and specifications. If the proposed construction, alterations or additions are to a portion of the Improvements which the Association is obligated to maintain, said approval shall also be subject to approval by the Board. The ACB may condition its approval of proposed plans and specifications in such a manner as it deems appropriate and may require the submission of additional information prior to approving or disapproving such plans.

B. The ACB may, but shall not be required to, establish design and construction guidelines and review procedures (the "Guidelines") to provide guidance to Owners and builders. The Guidelines shall not be the exclusive basis for decisions hereunder and compliance with the Guidelines shall not guarantee approval of an application. Any such Guidelines may contain general provisions applicable to all of the Committed Property, as well as specific provisions which vary from one portion of the Committed Property to another depending upon the location, type of construction or use, and unique characteristics of the property. It is intended that a portion of any Guidelines that is enacted will provide flexibility and substantial discretion to the ACB and that plans will be reviewed on a case-by-case basis

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with a variety of architectural styles and finishes being approved for use. Any Guidelines adopted pursuant to this Section may be amended at any time without notice in the sole discretion of the entity adopting it.

Declarant makes no representation, express or implied, to any Owner or any other party whatsoever with regard to the Guidelines, including, without limitation, the compliance of the Guidelines with building codes and other requirements, rules, laws and ordinances of federal, state and local governmental and quasi-governmental bodies and agencies relating to the construction of Improvements on the Lots and other activities engaged in by Featured Builders from time to time, the appropriateness of use of any substance or material required by the Guidelines, the compliance of the Guidelines with any licensing requirements imposed by federal, state and local governmental and quasi-governmental bodies and agencies from time to time, and the failure or alleged failure of the Guidelines to comply with any industry standard or any other reasonable standard or practice with respect to the work or materials used in the construction of Homes and other activities engaged in by·Owners or Featured Builder withln the Committed Property in accordance with the Guidelines.

C. The ACB shall have forty-five (45) days after delivery of all required materials to approve or reject any such plans and, if not approved within such forty-five (45) day period, such plans shall be deemed rejected, provided that, in any event, no such addition, construction or alteration shall be made by any Owner which is detrimental to or inconsistent with the harmony, appearance or general scheme of the Committed Property as a whole.

D. All Home plan submissions to the ACB shall include the site layout, exterior elevations, exterior materials and colors, landscaping, all existing trees measuring three (3) inches or more in diameter, drainage, lighting, irrigation, and other features of the proposed construction, as required by the Guidelines and as applicable, and shall provide evidence that the applicant is utilizing a builder that has been approved by the Declarant and included on the "Featured Builder List" promulgated by Declarant from time-to-time in its sole, absolute, and unfettered discretion, as a condition to the commencement of construction of any improvements on any Lot. The Guidelines shall include minimum landscaping requirements for each Lot, based on Lot type or otherwise and such provisions may require the expenditure of a minimum level of funds toward the landscaping and landscaping of each Lot

E. Declarant shall provide a list of Featured Builders to all Owners. To qualify as a Featured Builder, a builder must satisfy certain criteria and requirements established by Declarant, including, without limitation, the execution and delivery of a Featured Builder master agreement between Declarant and the Featured Builder, which may provide for the payment to Declarant by the Featured Builder of fees in Declarant's sole, absolute and unfettered discretion. However, the criteria and requirements established by Declarant for a builder to qualify as a Featured Builder are solely for Declarant's protection and benefit and are not intended to, and shall not be construed to, benefit any Owner or any other party whatsoever. Declarant makes no representation, express or implied, to any Owner or any other party whatsoever with regard to the Featured Builders, including, without limitation, the existence, nature and extent (including coverage amounts and deductibles) of insurance policies that may be maintained by the Featured Builders from time to time, the solvency or financial status of the Featured Builders from time to time, the nature and amount of any bonds that may be maintained

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by the Featured Builders from time to lime, the performance (or the ability to perfonn) by the Featured Builders of their contractual obligations (including any contractual obligations of any of the Featured Builders in favor of any Owner or any other party whatsoever), the compliance by the Featured Builders with building codes and other requirements, rules, laws and ordinances of federal, state and local governmental and quasi-governmental bodies and agencies relating to the construction of Improvements on the Lots and other activities engaged in by the Featured Builders from time to time, the use of any substance or material, including, without limitation, any stucco or synthetic material by the Featured Builders in connection with the construction of Improvements, the compliance by any Featured Builder with any licensing requirements imposed by federal, state and local governmental and quasi-governmental bodies and agencies from time to time, including, without limitation, the maintenance of any required builder's and/or contractor's license, and the failure or alleged failure of any Featured Builder to comply with any industry standard or any other reasonable standard or practice with respect to such Featured Builder's work or materials used in the construction of houses and other activities engaged in by such Featured Builder within Bella Collina. Furthermore, neither Declarant, nor the officers, directors, members, employees, agents or affiliates of Declarant, shall have any responsibility whatsoever for any sum that any Owner or any other party may deposit with a Featured Builder, including, without limitation, any earnest money or other deposit that any Owner may deliver to a Featured BuiJder. The selection of a Featured Builder by an Owner shall be conclusive evidence that such Owner is independently satisfied with regard to any and all concerns such Owner may have about the Featured Builder's work product and/or qualifications. Owners shall not rely on the advice or representations of Declarant or the officers, directors, members, employees, agents or affiliates of Declarant in that regard. The Declarant shall retain the sole right to include builders on the "Featured Builder List" until the completion of the initial construction of all Homes on all Unimproved Lots or at such earlier time as the Declarant may, at its sole option, elect in a written instrument executed by Declarant and recorded in the Official Records of Lake County, Florida. Thereafter, the provisions of this subsection shall automatically terminate and be of no force or effect. Until then, this subsection shall not be amended without the prior written consent of Declarant. DecJarant's approval hereunder of any Featured Builder shall not be construed as approval or certification of the competency of the builder or adequacy of the Improvements built by such builder, it being agreed that Owner shall hold Declarant harmless from all claims and liabilities arising from use of the Featured Builder.

F. All plans and specifications submitted shall comply with (i) any Guidelines that may be in effect, (ii) all other recorded covenants, conditions and restrictions applicable to the property, including, but not limited to, these CC&Rs, (iii) all requirements of any development order concerning the property and (iv) all laws and permits. The ACB may require the submission of such additional infonna1ion as it deems necessary to consider any application. All plans that are submitted concerning the proposed construction of a Home shall include information concerning the extent of proposed clearing of the site, landscaping materials to be utilized and the amount of impervious surface to be incorporated. In addition to the ACB's own standards of review and the general scheme of development applicable to the Committed Property at such time, all plans will be required to comply with applicable permits, regulations, development agreements and other conditions that may be imposed. In addition to other conditions that may be applicable from time to time, on the date of these CC&Rs the following standards concerning Lot and parcel clearance, landscaping and impervious surfaces are applicable: (i) for any Lot or parcel located within the initial Committed Property only, no more

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than sixty percent (60%) of any such Lot or parcel shall be cleared of its existing, natural vegetation, (ii) for any Lot or Parcel located within the initial Committed Property only, no more than thirty-five percent (35%) of any such Lot or parcel shall be covered by impervious surfaces, which shall include, but not be limited to any structure or paved areas located thereon, (iii) the portion of any Lot or parcel which is cleared and not covered by impervious surfaces shall be landscaped in accordance with approved plans, and (iv) landscaped areas that are covered by turf shall utilize zoysia sod in lieu of St. Augustine, floratam or other similar ground covers. It is contemplated that any Guidelines which are adopted will incorporate these and other standards that may be applicable from time to time.

G. AIl applications submitted for the proposed construction or reconstruction of a shared boat dock or boat house shall be executed by both applicable Lake Lot Owners, and shall include a dock maintenance agreement providing for such Owners' maintenance obligations.

H. No landscaping or other improvements on the Lake Lots which materiaUy interfere with the view of the Lake by immediate neighbors who are also Lake Lot Owners shall be permitted. In its review of proposed plans and specifications of landscape design and materials for Lake Lots, including, but not limited to, any massed plantings, the ACB will take into consideration the effect on Lake views of such landscaping, both at the proposed time of installation and at the time when maximum growth shall have occurred.

l. Notwithstanding any provision in this Article to the contrary, the approval of the ACB shall not be required for any additions, changes or alterations within any Homes if such additions. changes or alterations are not visible from the outside of such Homes. All changes and alterations shall be subject, independently, to all applicable governmental laws, statutes, ordinances, rules and regulations.

J. Notwithstanding anything to the contrary herein contained, no construction, reconstruction, addition or alteration by Declarant shall require the prior approval or any certificate of consent of the ACB.

K. The ACB shall, from time to time, establish hurricane shutter specifications which comply with the applicable buBding code, and establish pennitted colors, styles, and materials for hurricane shutters. Subject to the provisions of this Article, the ACB shall approve the installation or replacement of hurricane shutters conforming with the ACB's specifications. All shutters shall remain open unless and until a storm watch or storm warning is announced by the National Weather Center or other recognized weather forecaster. An Owner or occupant who plans to be absent during all or any portion of the hurricane season must prepare their Home prior to his or her departure by designating a responsible firm or individual to care for the Home should a hurricane threaten the Home or should the Home suffer hurricane damage, and furnishing the Association with the name(s) of such firm or individual. Such finn or individual shall be subject to the approval of the Association.

L. Notwithstanding anything to the contrary herein contained, no construction, reconstruction, addition or alteration by Club Property Owner upon the Club Property shall require the prior approval or any certificate of consent of the ACB.

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Section 3. MEETINGS OF THE ACB. The ACB shall meet from time to time as necessary to perform its duties hereunder. The ACB may from time to time, by resolution unanimously adopted in writing, designate an ACB representative (who may, but need not, be one of its members) to take any action or perform any duties for and on behalf of the ACB, except the granting of variances pursuant to Section 8 hereinbelow. In the absence of such designation, the vote of any two (2) members of the ACB shall constitute an act of the ACB.

Section 4. NO WAIVER OF FUTURE APPROVALS. The approval of the ACB of any plans and specifications or drawings for any work performed or proposed shall not be deemed to constitute a waiver of any right to withhold approval or consent to any identical or similar proposal subsequently or additionally submitted for approval or consent, whether such submission is by that applicant or another applicant. Similarly, the denial of approval by the ACB of any plans and specifications or drawings for any work done or proposed shall not be deemed to constitute a waiver of any right to approve or consent to any identical or similar proposal subsequently or additionally submitted for approval or consent, whether such submission is by that applicant or another applicant.

Section 5. COMPENSATION OF MEMBERS. The members of the ACB may, but need not, receive compensation for services rendered, in addition to reimbursement for expenses incurred by them in the performance of their duties hereunder as determined by the Board from time to time pursuant to Section 1 above.

Section 6. INSPECTION OF WORK. Inspection of work and correction of defects therein shall proceed as follows:

A. Upon the completion of any work for which approved plans are required under this Article, the submitting party shall give written notice of completion to the ACB.

B. Within thirty (30) days after written notice of completion, the ACB or its duly authorized representatives may inspect such Improvement. If the ACB finds such work was not done in substantial compliance with the approved plans, it shall notify the submitting party in writing of such noncompliance within such thirty (30) day period, specifying the particulars of noncompliance, and shall require the submitting party to remedy such noncompliance.

C. If upon the expiration of fifteen (15) days from the date of such notification the submitting party shall have failed to remedy such noncompliance, notification shall be given to the Board in writing of such failure. Upon such notice, the Board shall determine whether there is a noncompliance and, if so, the nature thereof and the estimated cost of correcting or removing the same. If noncompliance exists, the submitting party shall remedy or remove the same within a period of not more than thirty (30) days from the date of announcement of the Board's ruling. If the submitting party does not comply with the Board's ruling within such period, the Board, at its option, may remove the Improvement, remedy the noncompliance, or proceed in court to mandate compliance and the submitting party shall reimburse the Association, upon demand, for all expenses incurred in connection therewith, including Interest and Legal Fees. lf such expenses are not promptly repaid by the submitting party to the Association, the Board shall levy an Assessment against such submitting party for

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reimbursement, and said Assessment shall constitute a lien upon the applicable Lot and Home with the same force and effect as liens for Operating Expenses.

D. If, for any reason, notification is not given to the submitting party of acceptance within thirty (30) days after receipt of said written notice of completion from the submitting party, the Improvement and/or alteration shall be deemed to be in compliance with said approved plans.

Section 7. NON-LIABILITY OF ACB MEMBERS. Neither the ACB nor any member thereof, nor its duly authorized ACB representative, nor Declarant, shall be liable to the Association or to any Owner or any other person or entity for any loss, damage or injury arising out of or in any way connected with the performance of the ACB 's duties hereunder, unless due to the willful misconduct or bad faith of a member and only that member shall have any liability. The ACB's review and approval or disapproval of plans submitted to it for any proposed Improvement shall be based solely on considerations of the overall benefit or detriment to the community as a whole. The ACB shall not be responsible for reviewing, nor shall its approval of any plan or design be deemed approval of, any plan or design from the standpoint of structural safety or conformance with building or other codes. Furthermore, approval by the ACB of any plans and specifications does not excuse any Owner from also receiving approvals as required by all applicable governmental agencies.

Section 8. VARIANCE. The ACB may authorize variances from compliance with any of the architectural provisions of these CC&Rs or any Supplemental Declaration, when circumstances such as topography, natural obstructions, hardship, aesthetic or environmental considerations may require. If such variances are granted, no violation of the covenants, conditions and restrictions contained in these CC&Rs or any Supplemental Declaration shall be deemed to have occurred with respect to the Improvements for which the variance was granted.

Section 9. INAPPLICABILITY OF ARTICLE TO CLUB PROPERTY AND CLUB PROPERTY OWNER. Notwithstanding anything to the contrary in these CC&Rs, neither the Club Property, nor the Club Property Owner shall be subject to the provisions of this Article VIII.

ARTICLE IX

MAINTENANCE AND REPAIR OBLIGATIONS

This Article sets forth the various maintenance and repair obligations of the Association and the Owners with respect to the Committed Property and the Lots and Association Property located therein. Such maintenance and repair obligations may be different than those provided in any Supplemental Declarations.

Section 1. BY THE ASSOCIATION.

A. The Association, at its expense, shall be responsible for the maintenance, repair and replacement of all of the Improvements and facilities located upon the Association Property as otherwise provided herein. Should any incidental damage be caused to any Home by virtue of the Association's failure to maintain the Association Property as herein required or by

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virtue of any work which may be performed or caused to be performed by the Association in the maintenance, repair or replacement of any Association Property, the Association shall, at its expense, repair such incidental damage. The Association shall not, however, be responsible for any loss of use, any hardship, an Owner's time or any other consequential or punitive damages.

B. The Association shall operate, maintain and repair a water sprinkler system constructed over, through and upon the Association Property as it shaH deem appropriate. Except as provided in Section 2A of this Article IX, the Association shall be responsible for the costs of operation and maintenance of such sprinkler system, including any monthly fees and other costs of water usage and the cost of repair or replacement to all or any part thereof. There is hereby reserved in favor of the Association the right to enter upon the Association Property and any and all Lots for the purpose of operating, maintaining, repairing and replacing a water sprinkler system over, through and upon the Association Property.

C. The Association shall operate, maintain and repair the Drainage System constructed over, through and upon the Committed Property. There is hereby reserved in favor of the Association the right to enter upon the Association Property and the Lots for the purpose of operating, maintaining, repairing, and replacing the Drainage System over, through and upon the Committed property. The Association shall be responsible for all costs associated with all cleaning, maintenance, repairs and replacement of any portion of the Drainage System necessary to maintain the system in its original condition and use. The Association may sell, donate, or otherwise devise the Drainage System to another entity authorized by law to own and operate the Drainage System, including but not limited to governmental entities or the CDD. Any such conveyance of the Drainage System must comply with SJRWMD permits and rules.

D. The Association is specifically empowered to own, operate and maintain Utility Systems as defined in these CC&Rs, and to make assessments as provided in these CC&Rs and the Articles of Incorporation and Bylaws to provide for ownership, maintenance and operation of the Utility Systems, including but not limited to assessments to provide for a reasonable reserve fund for operation and maintenance of such Utility Systems. The Association may sell, donate, or otherwise devise the Utility Systems to another entity authorized by law to own and operate the Utility Systems, including but not limited to utilities certificated by the Florida Public Service Commission, governmental entities, or the CDD.

E. The Association shall be responsible for the maintenance, repair and replacement of all private streets located upon the Association Property and there is hereby reserved in favor of the Association the right to enter upon any and all parts of the Association Property and Lots for such purpose. To the extent permitted by the appropriate governmental authority, the Association may, but shall not be obligated to, also provide maintenance of all County, district or municipal properties which are located within or in a reasonable proximity of the Committed Properly to the extent that their deterioration or unkempt appearance would adversely affect the appearance of the Committed Property, including the right to enhance the landscaping in any public right of way.

F. The Association shall be responsible for the maintenance, repair and replacement of any street lights located in Bella Collina.

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G. The Association shall not alter the slopes, contours, or cross sections of the Lakes, Lake banks and littoral zones or chemically, mechanically, or manually remove, damage or destroy any plants in the littoral zones except upon the written approval from the applicable governmental authority. The Association shall be responsible for maintaining the required survivorship and coverage of the planted littoral areas, to ensure the ongoing removal of prohibited and invasive non-native plant species from these areas, and to comply with all governmental regulations applicable to the Lakes, Lake banks and littoral zones.

H. For all Lots platted in the Bella Collina plat recorded in Plat Book 51, Pages 31 through 49, Public Records of Lake County, the Association shall maintain and care for the grassed areas located between the sidewalk in front of such Owner's Lot and the edge of the roadway in front of such Owner's Lot. "Maintenance and care" within the meaning of this Subsection shall include irrigating, mowing, edging, fertilizing, and spraying of lawns, and replacement of sod. All lawns shall be maintained free from unsightly bald spots or dead grass and shall be uniform in texture and appearance with surrounding lawns in Bella Collina.

I. For all Lots platted in the Bella Col1ina plat recorded in Plat Book 51, Pages 31 through 49, Public Records of Lake County, the Association shall maintain and care for the landscaping, if any, located between the sidewalk in front of such Owner's Lot and the edge of the roadway in front of such Owner's Lot. "Maintenance and care" within the meaning of this Subsection shall include irrigating, fertilizing, spraying and trimming of landscaping and replacement of same, including the replacement of any dead or dying trees, so that, at a minimum, the initial landscaping for the Lot provided by Declarant shall be maintained.

J. The Association, by action of its Board, may make minor and insubstantial alterations and Improvements to the Association Property having a cost not in excess of Ten Thousand Dollars ($10,000). All other alterations and Improvements must first be approved by at least two-thirds (213) of all Owners represented in person or by proxy at a meeting called and held in accordance with the Bylaws. No alteration or Improvement may be made to the Association Property which materially and adversely affects the rights of the Owner of any Lot to the enjoyment of his Lot or the Association Property unless the Owner and all mortgagees holding recorded mortgages on such Lot consent thereto in writing; provided, however, the Declarant and the Club Property Owner may alter or improve the Association Property in accordance with their rights under these CC&Rs.

K. All expenses incurred by the Association in connection with the services and maintenance described in Paragraphs A through G, inclusive, are Operating Expenses, and those described in Paragraphs H and J are Neighborhood Expenses, all payable by each Owner under the provisions of these CC&Rs concerning Assessments and Neighborhood Assessments, respectively. Should the maintenance, repair or replacement provided for in Paragraphs A through I of this Section 1 be caused by the negligence of or misuse by an Owner, his/her family, guests, servants, invitees, or lessees, such Owner shall be responsible therefor, and the Association shall have the right to levy an Assessment against such Owner's Lot and said Assessment shall constitute a lien upon the appropriate Lot and Home with the same force and effect as liens for Operating Expenses.

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L. The Association has a reasonable right of entry upon any Lot to make emergency repairs and to do other work reasonably necessary for the proper maintenance and operation of the Committed Property. The Board may establish rules and regulations regarding the Association's entry upon the Lots.

M. The Association has a reasonable right of entry upon any Lot to remove or take down any hurricane shutters that remain on a Home after the threat of a hurricane has ended. The Board may establish rules and regulations regarding the Association's entry upon the Lots for such purposes.

N. The Association shall also be responsible for maintenance, repair and replacement of property within any Neighborhood to the extent designated in any Supplemental Declaration affecting the Neighborhood. The Association may also assume maintenance responsibilities with respect to any Neighborhood in addition to those that may be designated by any Supplemental Declaration. This assumption of responsibility may take place either by agreement with the Neighborhood or because, in the opinion of the Board, the level and quality of service then being provided is not consistent with the standards promulgated by the ACB and the Bella Collina Documents. All costs of maintenance pursuant to this Paragraph shall be assessed as a Neighborhood Assessment only against the Lots within the Neighborhood to which the services are provided, unless specifically provided otherwise in a Supplemental Declaration. The provision of services in accordance with this Paragraph shall not constitute discrimination within a class.

O. The Association may maintain other property which it does not own, including, without limitation, property dedicated to the public, (a) if such maintenance is required by these CC&Rs, (b) if the Board determines that such maintenance is necessary or desirable to maintain the standards for Bella Collina promulgated by the ACB or to cause compliance with these CC&Rs, (c) if the maintenance is requested by an Owner or (d) if the Board determines that maintenance to any private or shared dock facility is necessary or desirable and the Board elects to perform such maintenance in lieu of enforcing the respective Owner(s)'s obligation to perform such maintenance, in which event the respective Owner(s) shall be assessed the costs incurred.

P. In order to create a consistent appearance within Bella Collina East and Bella Collina West, as more particularly described on Exhibit "A" (exclusive of the Club Property), including all landscaped and grassed areas on all Lots within Bella Collina East and Bella Collina West up to the perimeter edge of the Home, the Declarant, or Declarant's assigns, shall approve all initial landscape design, and shall perform all initial installation of landscaping on a Lot within Bella Collina East and Bella Collina West, all of which Declarant or its assigns shall accomplish in accordance with the Guidelines, as detailed in such document and as amended from time to time. The Association will provide for all ongoing horticultural maintenance and care, with the intent of sustaining, at a minimum, the landscape quality level as established by the Declarant at the time of initial installation. All maintenance and care performed in accordance with this paragraph shall be assessed against Owners as Lot Type Maintenance Assessments and shall be consistent with the Community-Wide Standard. Landscape maintenance and care described within this paragraph will include: scheduling, checking and repairing of irrigation systems; periodic fertilization of trees, shrubs and turf areas;

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spraying of turf and landscape areas as required lo control disease or insects; pruning and trimming of trees and shrubs; mowing; edging; landscape bed maintenance and other related activities at a service level and frequency determined by the Association. Related landscape service specifications will be outlined by the Association and updated periodically in accordance with the ongoing maintenance and care needs within the Committed Property.

Q. As landscaping and turf areas within the Committed Property (exclusive of the Club Property), including all landscaped and turf areas on all Lots up to the perimeter of the edge of the Home, require periodic renewal or replacement due to age, effects of weather, disease, decline or other natural conditions that affect appearance and viability of plant material over time, the Association shall have the authority to arrange for plant replacement within Bella Collina East and Bella Collina West, as more particularly described on Exhibit "A" hereof, as a Lot Type Maintenance Expense. The intent is to sustain, at a minimum, the landscape quality level as established by the Declarant at the time of initial installation. ln the event that an Owner within Bella Collina East or Bella Collina West desires to amend the landscape or hardscape package initially installed on the Owner's Lot, Owner shall be required to seek the approval of the ACB and, upon such approval, shall be required to utilize the services of a builder or landscape service company approved by Declarant.

Section 2. BY THE OWNERS.

A. Except to the extent the Association is responsible therefore as provided in Section 1 above, the Owner of each Lot must keep and maintain his/her Lot and the improvements thereon, including equipment and appurtenances, in good order, condition and repair, and must perform promptly all maintenance and repair work within his Home which, if omitted, would adversely affect Bella Collina, the other Owners, Club Property Owner, or the Association and its Members. The Owner of each Lot shall be responsible for any damages caused by a failure to so maintain such Lot and Home. The Owners' responsibility for maintenance, repair and replacement shall include, but not be limited to, all of the physical structure constructed in, upon or below the Lot. physical items attached or connected to such structure that run beyond the boundary line of the Lot which exclusively service or benefit the Lot and Home, and any boat dock located in whole or in part within the Owner's Lot or adjacent to such Owner's lakefront boundary together with any dock maintenance which an Owner is obligated to perform pursuant to any separate instrument setting forth such responsibilities. The painting, caulking and maintenance of the exterior surface of the walls, doors, windows and roof of the physical structure of the Home shall be performed by the (Avner, and the exterior surface of such walls, doors, windows and roof shall at all times be maintained in a good and serviceable condition with no damage or other defect therein by the Owner. The Owner of a Lot further agrees to pay for all utilities, such as telephone, cable television, water (including water associated with irrigation if such water is not being provided by the Association or a Neighborhood Association), sewer, sanitation, electric, etc., that may be separately billed or charged to his/her Home. The Owner of each Lot shall be responsible for insect and pest control within the Lot and Home. Whenever the maintenance, repair and replacement of any items which an Owner is obligated to maintain, repair or replace at his own expense is occasioned by any loss or damage which may be covered by any insurance maintained in force by the Association, the proceeds of the insurance received by the Association shall be used for the purpose of making such maintenance, repair or replacement, except that the Owner shall be, in said instance,

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required to pay such portion of the costs of such maintenance, repair and replacement as shall, by reason of the applicability of any deductibility provision of such insurance or otherwise, reduce the amount of the insurance proceeds applicable to such maintenance, repair or replacement.

B. The Owner of each Lot shall maintain, repair and replace as needed any fencing on his/her Lot, clean, maintain and repair the driveway on his/her Lot, and keep the sidewalk located on his/her Lot clean and free from any impediments to pedestrian traffic.

C. The Declarant has constructed a drainage swale upon each Lot and other parcels for the purpose of managing and containing the flow of excess surface water, if any, found upon such Lot or parcel from time to time. Each Owner, including builders, shall be responsible for the maintenance, operation and repair of the drainage swales on the Lot or parcel. Maintenance, operation and repair shall mean the exercise of practices, such as mowing and erosion repair which allow the drainage swales to provide drainage, water storage, conveyance or other stormwater management capabilities as permitted by the SJRWIMD. Filling, excavation, construction of fences or otherwise obstructing the surface water flow in the drainage Swales is prohibited. No alteration of drainage swales shall be authorized and any damage to any drainage swale, whether caused by natural or human-induced phenomena, shall be repaired and the drainage swale returned to its former condition as soon as possible by the Owner(s) of the Lot and parcel(s) upon which the drainage swale is located.

In order to protect a number of large oak trees located on the Committed Property, the Declarant has constructed, or intends to construct, certain drainage swales that will meander around the large oak trees currently located within the platted drainage easements that run along the rear of certain Lake Lots. Such meandering swales may be more particularly described from time to time in recorded easements applicable to each such Lake Lot. Each Owner, including Builders, of a Lake Lot on which a drainage swale is constructed shall be prohibited from removing any oak trees located within the platted drainage easement. within any future recorded drainage easement, or adjacent to such easement areas, without the prior written consent of the Association and, if required by an applicable permit, the SJRWMD.

D. If a Home is damaged by fire or other casualty, its Owner shall properly and promptly restore it to at least as good a condition as it was before the casualty occurred. Any such work shall be in accordance with the original plans and specifications of the Home unless otherwise authorized by the ACB and shall be otherwise subject to all provisions of Article VIII hereof.

E. Each Owner shall keep his Home insured in an amount not less than its full insurable value against loss or damage by fire or other hazards. Evidence of such coverage shall be furnished to the Association promptly upon the Board's request.

F. If an Owner fails to comply with the foregoing provisions of this Section 2, the Association may proceed in court to enjoin compliance. Further, if the failure to comply relates to the Owner's obligations to maintain insurance, the Association shall be entitled, although not obligated, to obtain the required coverage itself and to levy on the offending Owner an Assessment equal to the cost of premiums, and any such Assessment shall constitute a lien

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upon the applicable Lot and Home with the same force and effect as a lien for Operating Expenses.

G. If a failure to comply with the provisions of this Section 2 relates to the Owner's obligation to maintain his/her Home or any other area required to be maintained by the Owner, then, in addition to the exercise of all other remedies, the Association or Declarant shall have the right but not the obligation, upon fifteen (15) days written notice, to enter the property of the Owner for the purpose of performing the maintenance referred to, set forth and described in the notice. The determination of whether an Owner is failing to properly maintain and care for the property for which he has the maintenance responsibility shall be determined in the sole discretion of the Association or Declarant. Further, the Association shall be entitled, but not obligated, to perform such maintenance and care itself and to levy on the offending Owner an Assessment equal to the cost of performing such maintenance and any such Assessment shall constitute a lien upon the applicable Lot and Home with the same force and effect as a lien for Operating Expenses.

Section 3. DAMAGE TO BUILDINGS. The Owner of any Home which has suffered damage may apply to the ACB for approval for reconstruction, rebuilding. or repair of the Improvements therein. The ACB shall grant such approval only if, upon completion of the work, the exterior appearance will be substantially similar to that which existed prior to the date of the casualty; provided, however, nothing shall prohibit the ACB from approving reconstruction, rebuilding, or repair that would result in an exterior appearance not substantially similar to that which existed prior to the date of the casualty if an Owner pursues the complete ACB application, review and approval process set forth for Article VIII of these CC&Rs. If the obligation for repair falls upon the Association, the ACB approval will not be required prior to the commencement of such work, so long as the exterior appearance will be substantially similar to that which existed prior to the date of the casualty.

The owner or owners of any damaged building, the Association, and the ACB shall be obligated to proceed with all due diligence hereunder and the responsible parties shall commence reconstruction within three (3) months after the damage occurs and complete reconstruction within one (1) year after the damage occurs, unless prevented by causes beyond his or its reasonable control.

Declarant shall be exempt from the provisions of this Section 3, provided that any such reconstruction, rebuilding or repairs made by the Declarant shall be consistent, as to the exterior appearance, with the Improvements as they existed prior to the damage or other casualty, unless otherwise approved by the ACB.

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