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2010/01/12 Easement Reservation of Easements for Terra BellaRecording requested by and When recorded return to: City of Menifee Kathy Bennett, City Clerk 29714 Haun Road Menifee, CA 92586 DOC # 2010-oOI1676 01/12/2010 08:00R Fee:126.00 Page 1 of 38 Recorded in Official Records County of Riverside Larry u, Ward Rssessor, ount C 111111111111111111111111111 Y Clerk g Retarder 11l1 IIII, 1110111 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS, AND RESERVATION OF EASEMENTS FOR TERRA BELLA (Phase 1 - Tract 28206-2) A Single -Family Residential Development NOTE: AS MORE FULLY DESCRIBED IN THIS DECLARATION OR OTHERWISE PROVIDED BY DECLARANT, IN THE EVENT OF ANY DISPUTE(S) ARISING HEREUNDER, OR RELATING TO THE DESIGN AND/OR CONSTRUCTION OF THE PROJECT, SUCH DISPUTE(S) SHALL BE SUBMITTED TO A NONADVERSARIAL PROCEDURE AND IF NOT RESOLVED, SUBMITTED THEREAFTER TO AN ALTERNA- TIVE DISPUTE RESOLUTION PROCEDURE (e.q., BINDING ARBITRATION), AND AS A RESULT THEREOF, SUCH DISPUTE(S) WILL NOT BE LITIGATED IN A COURT OR BEFORE A JURY. ANY PERSON PURCHASING IN THIS DEVELOPMENT KNOWINGLY AND VOLUNTARILY AGREES TO BE BOUND BY A PROCEDURE WHICH DOES NOT INCLUDE A RIGHT TO A JURY. IF THE ALTERNATIVE DISPUTE RESOLUTION PROCEDURE IS UNACCEPTABLE, AN INDIVIDUAL OR ENTITY SHOULD NOT PURCHASE IN THIS PROJECT. 52019.001-15960.FCM 121009 I;&- w TABLE OF CONTENTS ARTICLE I DEFINITIONS . . . , 2 1. Annexation Property . . . . . . . . . . . . 2 2. Best Management Practices or BMPs . . . . . . 2 3. City . . . . . . . . . . . . . . . . . . . . 3 4. County . . . . . . . . . . . . . . . . . . 3 5. Declarant . . . . . . . . . . . . . . . . . 3 6. Declaration . . . . . . . . . . . . . . . . . 3 7. DRE . . . . . . . . . . . . . . . . . . . 3 8. Entitlements . . . . . . . . . . . . . . . . 4 9. Guest Builder . . . . . . . . . . . . . . . . 4 10. Improvements . . . . . . . . . . . . . . 4 11. Include, Including . . . . . . . . . . . . . 4 12. Lot 4 13. Maintain, Maintenance . . . . . . . . . . . , 4 14. Maintenance Guidelines; Maintenance Manual; Maintenance Obligations . . . . . . . 4 15. Notice of Annexation . . . . . . . . . . . . 5 16. Owner . . . . . . . . . . . . . . . . . . . 5 17. Phase . . . . . . . . . . . . . . . . . . . . 5 18. Project .. . . . . . . . . . . . . . . 5 19. Property . . . . . . . . . . . . . . . . . . 5 20. Residence . . . . . . . . . . . . . . 5 21. SB 800 . . . . 5 22. Supplemental Declaration 5 23. Water Quality Management Plans . . . . . . . 6 24. Interpretation . . . . . . . . . . . . . . . 6 25. Application of Definitions . . . . . . . . . 7 ARTICLE II GENERAL PLAN OF DEVELOPMENT 7 1. Introduction to the Project . . . . . . . . . 7 2. Declarant's Control of Development 7 ARTICLE III EASEMENTS AND RIGHTS . . . . . . . . . . . . . . . 9 1. Easements for Utilities . . . . . . . . . . . 9 2. Easements for Drainage . . . . . . . . . . . 10 3. Easements for Construction and Sales . . . . 10 4. Easements for Encroachments . . . . . . . . 11 5. Access to Slopes and Drainage Ways . . . . 11 6. Declarant Easements . . . . . . . . . 11 7. Easements to the City and County . . . . . . 11 ARTICLE IV USE RESTRICTIONS . . . . . . . . . . . . . . . . . 12 1. Private, Single -Family Dwelling . . . . . . . 12 2. Prohibited Dwelling Structures . . . . . . . 12 3. Signs . . . . . . . . . . . . . . . . . . . . 12 4. Animals . . . . . . . . . . . . . . . . . . . 12 52019.001-15960.FCM 121009 l i S. Quiet Enjoyment . . . . . . . . . . . . . . . 13 6. Structural Changes . . . . . . . . . . . . . 13 7. Improvements . . . . . . . . . . . . . . . 14 B . Windows . . . . . . . . . . . . . . . . . . . 14 9. Commercial Activity . . . . . . . . . . . . . 14 10. Parking . . . . . . . . . . . . . . . . . . . 14 11. Solar Heating . . . . . . . . . . . . . . . . 15 12. Declarant's Improvements . . . . . . . . . . 15 13. Antennas/Apparatus . . . . . . . 15 14. Leasing . . . . . . . . . . . . . . . . . 16 15. Party Walls and Fences . . . . . . . . . 16 16. Drilling . . . . . . . . . . . . . . . . . . 17 17. View . . . . . . . . . . . . . . . . . . . . 17 18. Refuse . . . . . . . . . . . . . . . . . 17 19. Landscaping . . . . . . . 17 20. Water Softeners . . . . . . . . . . . . 18 21. Electric Lines . . 18 22. No Roof -Mounted Mechanical Equipment 18 23. BMP Compliance . . . . . . . . . . . . . . 18 24. Hazardous or Toxic Waste . . . . . . 18 25. Exemption of Declarant . . . . . . . 18 ARTICLE V MAINTENANCE . . . . . . . . . . . . . . . . . . 19 1. Maintenance of Lots . . . . . . . . . . . . . 19 2. Maintenance Guidelines . . . . . . . . . . . 20 3. Maintenance of Landscaping, Fences, Walls . . 20 4. Damage to Residence . . . . . . . . . . . . . 21 5. Damage to Walls and Fences . . . . . . . . 21 6. Drainage . . . . . . . . . . . . . . . . . . 21 ARTICLE VI ANNEXATION OF ADDITIONAL PROPERTY . . . . . . . . 22 1. Development of the Project . . . . . . . . . 22 2. Annexation Pursuant to General Plan of Development . . . . . . . . . . . . . . . 22 3. Notice of Annexation . . . . . . . . . . . . 22 4. Effective Date of Annexation 23 5. Amendments to Notice of Annexation 23 6. Right of De -Annexation . . . . . . . . . . . 23 7. Parties to Notice of Annexation . . . . . . . 23 ARTICLE VII GENERAL PROVISIONS . . . . . . . . . . . . . . . 23 1. Enforcement . . . . 23 2. Dispute Resolution Procedure/Notices Pursuant to SB 800 . . . . . . . . . . . . 25 3. Electrical Power Lines . . . . . . . . . 25 4. Severability . . . . . . . . . . . . . . . 25 S. Term . . . . . . . . . . . . . . . . . 25 6. Covenants Running With the Land 26 7. Construction . . . . . . . . . . . . . . . . 26 8. Singular Includes Plural . . . . . . . . . . 26 52019.001-15960.FCM 121009 ( i i 9 . Amendments . . . . . . . . . . . . . . . . . 26 10. Attorneys' Fees . . . . . . . . . . . . . . . 27 11. No Warranty of Enforceability . . . . . . . . 27 12. Exhibits . . . . . . . . . . . . . . . . . . 27 13. Project Disclosures . . . . . . . . . . . . . 27 EXHIBITS: Exhibit A Annexation Property 52019.001-15960.FCM 121009 ( i i i DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS FOR TERRA BELLA THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRIC- TIONS, AND RESERVATION OF EASEMENTS is made this day of 2009, by CADO GARBANI LLC, a California limited liability company (hereinafter referred to as the "Declarant"). W I T N E S S E T H: A. Declarant is the owner of that certain real property located in the City of Menifee, County of Riverside, State of California, generally described as: Being a subdivision of Parcel 4 of Lot Line Adjustment No. 5050, in the County of Riverside, State of California, recorded September 15, 2006 as Instrument No. 2006-0684124, lying within the east 1/2 of the southwest 1/4 of Section 11, Township 6 South, Range 3 West, San Bernardino Meridian; however, upon recordation of the pending final map is anticipated to be more particularly described as: Lots 1 through 64, inclusive, of Tract No. 28206-2, as per Map filed in Book Pages _qJ through ab, inclusive, of Maps in the-0-T—fice of the County Recorder of Riverside County, California (hereinafter referred to as the "Property," the "Lots," or "Phase 1") . B. Declarant also owns that certain real property located in the City of Menifee, County of Riverside, State of California, more particularly described in Exhibit "A" attached hereto ("Annexation Property"), which may, from time to time, be annexed to and become part of the Project (as hereinafter defined) , in accordance with the Article herein entitled "Annexation of Additional Property." C. Declarant desires to develop the Property and those portions of the Annexation Property which are annexed into the Property, if any, as a single-family residential project (herein- after referred to as the "Project") , as more particularly described below. D. Declarant deems it desirable to impose a general plan for the development, protection, use, occupancy, and enjoyment of the Project, and to establish, adopt and impose covenants, 52019.001-15960.�FCM 121009 conditions, and restrictions upon the Project for the purpose of enforcing, protecting, and preserving the value, desirability, and attractiveness of the Project. E. Declarant intends to convey the Project, and any and all portions thereof, subject to the covenants, conditions, and restrictions set forth hereinbelow. NOW, THEREFORE, Declarant agrees and declares that it has established, and does hereby establish, a plan for the development, protection, use, occupancy, and enjoyment of the Project, and has fixed, and does hereby fix, the covenants, conditions, restric- tions, easements, reservations, liens, charges, and equitable servitudes (hereinafter collectively referred to as the "Cove- nants") upon the Project. Each and all of the Covenants shall run with the land and shall inure to the benefit of and be binding upon Declarant, its successors and assigns, and all subsequent owners of all or any portion of the Project, together with their grantees, successors, heirs, executors, administrators, devisees, and assigns. ARTICLE I DEFINITION Section 1. "Annexation Property" shall mean and refer to that certain real property described in Exhibit "A" attached hereto (hereinafter referred to as "Annexation Property"), includ- ing all Improvements (as defined below) constructed thereon, all or any portion of which may be annexed into the Project by Declarant, as set forth in the Article herein entitled "Annexation of Addi- tional Property." Section 2. "Best Management Practices or BMPs" shall mean and refer to those certain structural, treatment control, and non-structural water quality management practices set forth in, or otherwise required pursuant to, the Water Quality Management Plans ("WQMP") approved for or applicable to the Project. The structural and treatment control Best Management Practices may include, without limitation, landscape planting, hillside planting, roof runoff controls, efficient irrigation technology, slope and channel protection measures, storm drain signage, trash storage areas, litter control requirements, in -flow based treatment control BMPs (e.g., vegetated buffer strips, vegetated swales, multiple systems, bioretentions, and hydrodynamic separation systems), volume based treatment control BMPs (e.g., wet ponds, constructed wetlands, extended detention basins, water quality inlets, retention/ irrigat- ion, infiltration basins, infiltration trenches, media filters, and manufactured proprietary devices), detention basins, retention basins, debris basins, "V" ditches, bench drains, catch basins, catch basin media filters, fossil filters, inlet trash racks, drainpacs and other storm drain filtration devices, energy 52019.001-15960.FCM 121009 -2- dissipaters, culverts, pipes, and related storm drain and water quality facilities constructed in the Project. The non-structural Best Management Practices generally require the Owners and other residents within the Project to be aware of the sensitive natural environment surrounding the Project and to take appropriate actions to control runoff from the Project. The non-structural Best Management Practices may include, among other things, restricting certain activities to protect the quality of water entering the storm drain system (e.g., prohibiting the disposal of motor oil, paint products, car detergents and other pollutants into the storm drains in the Project). The Best Management Practices are designed and intended to control runoff and must be implemented by the Owners and other residents within the Project. The Best Management Practices may be modified from time to time by the Declarant or any public agency having jurisdiction regarding water quality for runoff waters from the Project in order to control runoff as the Project develops and runoff conditions change. Compliance by the Owners and other residents of the Project with the Best Management Practices, as they may be modified from time to time, may be monitored and enforced by any public agency having jurisdiction regarding water quality for runoff waters from the Project, including, without limitation, the City, County, Regional Water Quality Control Board, and State Water Resources Board. Section 3. "City" shall mean and refer to the City of Menifee, California, and its various departments, divisions, employees, and representatives. Section 4. "County" shall mean and refer to the Coun- ty of Riverside, California, and its various departments, divi- sions, employees, and representatives; depending on the context, "County" may also mean the City as successor -in -interest to the County. Section 5. "Declarant" shall mean and refer to CADO GARBANI LLC, a California limited liability company, and to any person or entity acquiring all or a portion of Declarant's interest in the Project (such as a Guest Builder), including all of Declarant's rights, privileges, immunities, and obligations as cre- ated and established herein, pursuant to a written assignment from Declarant which is recorded in the Office of the County Recorder. Upon the recordation of such assignment, all of the interests, rights, privileges, immunities, and obligations which were assigned shall inure to the benefit of the assignee(s). Section 6. "Declaration" shall mean and refer to this Declaration of Covenants, Conditions and Restrictions, and Reser- vation of Easements recorded on the Project, as same may be amended from time to time. Section 7. IIDRE" shall mean and refer to the Depart- ment of Real Estate of the State of California, which administers the sale of subdivided lands pursuant to Sections 11000, et sea., 52019.001-15960.FCM 121009 - 3 of the California Business and Professions Code, or any similar California statute hereinafter enacted. Section 8. "Entitlements" shall mean all building permits and related permits, conditions of approval, and all docu- ments, instruments or similar writings which regulate or relate to utilization of real property in the Project. Section 9. "Guest Builder" shall mean and refer to any person or entity (other than CADO GARBANI LLC) who: (a) acquires any portion of the Annexation Property for the purpose of developing five (5) or more Lots and reselling such Lots to the general public under the authority of a Final Subdivision Public Report issued by the DRE; and (b) annexes the acquired portion of the Annexation Property into the Project. Except as expressly provided in this Declaration, all of the rights and provisions herein benefiting Declarant and all of the easements reserved herein in favor of Declarant, including, without limitation, the rights and easements in favor of Declarant set forth in Article III, Sections 3 and 6, and Article IV, Sections 6, 12, 15, 19, and 25, of this Declaration, are also reserved in favor of each Guest Builder. Section 10. "Improvements" shall mean and refer to all structures and appurtenances thereto of every kind, including, but not limited to, Residences and all modifications to the exterior of a Residence (including, but not limited to, room additions, patio covers, decks, gazebos, spas, hot tubs, pools, fences, walls, awnings, screens and skylights, sheds and any other outbuildings, radio antenna, satellite dish or other similar electronic receiving or broadcasting device, drainage devices, fences, walls and all trees, shrubs and other landscaping). Section 11. "Include, Including" (whether capitalized or not) shall mean "includes without limitation" and "including without limitation," respectively. Section 12. "Lot" shall mean and refer to a plot of land which is separately numbered and described on a subdivision map recorded in the Office of the County Recorder, (as same may be adjusted from time to time by a Lot Line Adjustment or Certificate of Compliance recorded in the Office of the County Recorder), and to all Improvements constructed thereon. Section 13. "Maintain Maintenance" (whether capital- ized or not) shall mean "inspect, maintain, repair and replace" and "maintenance, repair and replacement," respectively; provided, however, that "maintain" or "maintenance" shall not include inspection, repair and replacement) where the context or specific language of this Declaration provides another meaning. Section 14. "Maintenance Guidelines; Maintenance Manual; Maintenance obligations" shall mean and refer to any 52019.001-15960.FCM 121009 - 4 - current written guidelines, setting forth procedures and standards for the maintenance and operation of a Residence and other Improve- ments Declarant has constructed on or in the Project. Maintenance Guidelines also include (i) any maintenance recommendations and/or obligations initially prepared by or at Declarant's direction, (ii) any maintenance schedules, recommendations and/or obligations prepared by or at Declarant's direction pertaining to a Residence and/or other Improvements on a Lot, (iii) any product manufactur- ers' maintenance guidelines/recommendations for a Residence and/or Lot, and (iv) commonly accepted maintenance practices. Section 15. "Notice of Annexation" shall mean and refer to that certain instrument recorded by Declarant utilized to annex all or any portion of the Annexation Property, in accordance with the provisions of this Declaration, thereby subjecting said subsequent Phase to the provisions of this Declaration. Section 16. "Owner" shall mean and refer to the record owner, or owners if more than one (1), or the purchaser under a conditional sales contract of fee title to, or an undivided in- terest in, any Lot in the Project. The foregoing does not include persons or entities who hold an interest in a Lot merely as se- curity for the performance of an obligation. Section 17. "Phase" shall mean and refer to: (a) the Property; and (b) one (1) or more Lots within the Annexation Property which are annexed to the Project by the recordation of a Notice of Annexation in the Office of the County Recorder and for which a Final Subdivision Public Report has been issued by the DRE. Section 18. "Project" shall mean and refer to the Property and all Annexation Property which is annexed into the Project pursuant to this Declaration and to all Improvements constructed thereon. Section 19. "Property" shall mean and refer to all of that certain real property described in Paragraph A of the recitals hereinabove. Section 20. "Residence" shall mean and refer to the individual dwelling (including the garage and any other appurtenant Improvements) which is constructed upon a separate Lot and which is designed and intended for use and occupancy as a single-family residence. Section 21. "SB 800" shall mean and refer to Senate Bill No. 800, which added section 43.99 and Title 7 (commencing with section 895) to Part 2 of Division 2 of the California Civil Code. Section 22. "Supplemental Declaration" shall mean and refer to any supplemental declaration recorded by Declarant or a Guest Builder which sets forth dispute resolution procedures, 52019.001-15960.FCM 121009 ..5 - maintenance requirements, and/or notices pursuant to Senate Bill No. 800 that pertain solely to Declarant's or such Guest Builder's Lots. Section 23. "Water uality Management Plans" shall mean and refer to all applicable plans and requirements for the management of storm water at the Project, including, without limitation, any applicable National Pollutant Discharge Elimination System ("NPDES") permit requirements, Standard Urban Storm Water Mitigation Plan ("SUSMP"), Storm Water Pollution Prevention Plan ("SWPPP"), Water Quality Management Plan ("WQMP"), Drainage Area Management Plan ("DAMP"), Local Implementation Plan ("LIP"), and other storm water quality management plans that may be prepared for the Project in compliance with applicable federal, state and local laws and approved by the applicable public agencies. The Water Quality Management Plans address water runoff generated by the residential areas and other development Improvements within the Project and will be monitored by various public agencies (e.g., the Regional Water Quality Control Board, City, and the County). The Water Quality Management Plans contain, among other things, certain Best Management Practices that must be followed by the Owners and other residents within the Project. The Water Quality Management Plans and the related Best Management Practices may be modified at any time by the Declarant and/or the public agencies having jurisdiction over such matters. Section 24. Interpretation. (a) General Rules. This Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for subdividing, maintaining, improving and selling the Lots. As used in this Declaration, the singular includes the plural and the plural the singular. The mascu- line, feminine and neuter each includes the other, unless the context dictates otherwise. (b) Articles Sections and Exhibits. The Article and Section headings are inserted for convenience only and may not be considered in resolving questions of interpretation or construction. Unless otherwise indicated, any references in this Declaration to articles, sections or exhibits are to Articles, Sections and Exhibits of this Declaration. All exhibits attached to this Declaration are incorporated in this Declaration by this reference. The locations and dimensions of any Improvements depicted on the Exhibits attached hereto and to any Notice of Annexation are approximate only, and the as - built location and dimension of any such Improvements shall control. (c) Severability. The provisions of this Declara- tion are independent and severable. A determination of invalidity, partial invalidity or unenforceability of any one (1) provision of this Declaration by a court of competent 52019.001-15960.FCM 121009 - 6 - jurisdiction does not affect the validity or enforceability of any other provisions of this Declaration. (d) Statutory References. All references made in this Declaration to statutes are to those statutes as current- ly in effect or to subsequently enacted replacement statutes. Section 25. "Application of Definitions." The aforesaid definitions shall be applicable to this Declaration and to any supplements or amendments hereto, including, but not limited to, any Notices of Annexation filed or recorded pursuant to the provisions of this Declaration, unless the context shall prohibit such application. ARTICLE II GENERAL PLAN OF DEVELOPMENT Section 1. Introduction to the Project. The Declarant has designed Terra Bella as a multi -phase planned resi- dential community, which, if completed as proposed, may consist of Sixty -Four (64) Lots improved with Residences and related ameni- ties. Nothing in this Declaration, and/or any Notice of Annexation is intended, or shall be interpreted, to constitute an "enhanced protection agreement" as defined in Section 901 of the California Civil Code. The Project will be developed in a series of phases in accordance with the general plan of development submitted to and approved by the County and/or City and the DRE. Section 2. Declarant's Control of Development. Subject only to the prior approval of the County and/or City, as applicable, and any other appropriate governmental agencies, nothing in this Article or elsewhere in this Declaration shall limit the right of Declarant to: (a) modify all unsold Lots in the Project, including increasing or decreasing the size or number of Lots (including but not limited to subdividing, resubdividing, adjusting Lot lines, grading or re -grading any portion of said unsold Lots in the Project); (b) complete construction of any Improvements in the Project; (c) redesign or change the style, square footage, color or appearance of any Improvements in any portion of the Project owned or controlled by Declarant; (d) con- struct such additional Improvements on any portion of the Project owned or controlled by Declarant; and/or (e) otherwise control all aspects of designing and constructing the Improvements, and selling or leasing Lots in the Project. In furtherance thereof, Declarant hereby reserves unto itself, and its successors and assigns, a non- exclusive easement for ingress and egress on, over and across the Project as necessary to construct Improvements, and further reserves the exclusive right to maintain a sales office, model com- plex and reasonable signs on any portion of the Project owned or controlled by Declarant. Nothing in this Declaration shall limit the right of Declarant to establish additional licenses, easements 52019.001-15960.FCM 121009 - 7 - and rights -of -way for building, constructing or installing any utility or other similar facilities over any portion of the Project owned by Declarant, in favor of Declarant, utility companies or others, as may, from time to time, be reasonably necessary for the development of the Project. Declarant further reserves unto itself, easements for ingress, egress, and access to enter any Lot in the Project for a term of twenty-four (24) months following the recordation date of the grant deed from Declarant to an Owner, to complete and repair any Improvement or landscaping located thereon as determined necessary by Declarant, in its sole discretion, in order to comply with the requirements for the recordation of the final map of Tract No. 28206-2, the grading of the Lot, and the requirements of applicable governmental agencies. So long as Declarant owns any Lot in the Property or any portion of the Annexation Property, this Section may not be amended without the written consent of Declarant. Section 3. Utility Structures and Easements. Each Owner acknowledges and agrees that each Lot in the Project is subject to easements in favor of utility agencies, and numerous Lots in the Project are affected by the installation of above- ground utility structures, which include, but are not limited to, vaults, transformers, street lights, valves, landscape irrigation pumps, clustered mailboxes, fire hydrants, drainage devices, manholes, and manhole covers. Each Owner acknowledges and understands that both the utility agencies for electricity, gas, water, telephone, cable television, and governmental entities control the location of these structures, not the Declarant, and these structures may be located on portions of the Project adjacent to an Owner's Residence or within an Owner's Lot. Each Owner hereby understands that to accommodate development of the Project, various easements exist for utility purposes, including, but not limited to, ingress, egress, storm drain, water line, sanitary sewer, public utility and other related purposes (e.g., see the various depictions on the final maps and/or improvement plans for Tract 28206-2. Each Owner further understands that, as a result of said reservation of easements, certain restrictions involving the construction and placement of Improvements on an Owner's Lot may exist (the County, City, and/or utility company may top, cut, remove, or trim interfering plants and trees, and may require the Lot owner to refrain from any grading activities and to keep the easement area free from any structures, objects, or other obstruc- tions). Owner hereby acknowledges that as a result of various easements, the construction, use, maintenance, operation, altera- tion, additions to, repair of, replacement, reconstruction, inspection and removal of Improvements and facilities for various electrical and communication systems may occur at any time, and from time to time, within said easement areas. Owner is aware that certain easements affecting the Project are generally depicted on the recorded tract map and are normally described in the title report issued for the Lots affected thereby. Each Owner is encouraged to obtain copies of all underlying documents described in the preliminary title report for the Owner's Lot for descrip- 52019.001-15960.FCM 121009 - 8 tions of applicable easements. Each Owner hereby covenants and agrees to examine, to Owner's satisfaction, each of the underlying documents indicated in Owner's title report and the recorded tract map in which owner's Lot is located to determine the extent, if any, of the impact of any existing easements. ARTICLE III EASEMENTS AND RIGHTS Section 1. Easements for Utilities. The rights and duties of the Owners of Lots within the Project with respect to sanitary sewer, water, electricity, gas, cable television (or CATV lines) and telephone lines, and other facilities, shall be governed by the following: (a) Each Owner shall maintain those facilities and connections located upon his or her respective Lot which are not maintained by the respective utility company or agency; (b) Wherever sanitary sewer, water or gas connec- tions, television cables, electricity or telephone lines are installed within the Project and it becomes necessary to gain access to said connections, cables, and/or lines through a Lot owned by someone other than the Owner of the Lot served by said connections, cables, and/or lines, the Owner of the Lot served by said connections, cables, and/or lines shall have the right, and is hereby granted an easement to the full extent necessary therefor, to enter upon such other Lot or to have the utility companies enter upon such other Lot to repair, replace, and generally maintain said connections, cables, and/or lines. In the event that any damage shall be proximately caused by such events, said Owner or utility company shall repair the same to a condition which existed immediately prior to such damage, at its respective expense; (c) Whenever sanitary sewer, water, or gas connec- tions, television cables, electricity, or telephone lines are installed within the Project, and said connections, cables, and/or lines serve more than one (1) Lot, the Owner of each Lot served by said connections, cables, and/or lines shall be entitled to the full use and enjoyment of such portions of same as service his or her Lot; (d) No Owner shall construct any Improvements on any utility easement area of record which will unreasonably interfere with the maintenance and repair of the facilities located in said easement without the prior written consent of the appropriate utility company. Each Owner hereby acknowledges that all Improvements (and landscaping) installed within any utility easement area may be removed by the County, City, utility company, or Declarant, or their respective 52019.001-15960.FCM 121009 - 9 - employees or agents, to maintain, repair or replace any of the foregoing utility facilities without any liability to the Owner to repair or restore such Improvements (or landscaping); and (e) To the extent required by the County and/or City, as applicable, all utility extensions within a Lot shall be placed and maintained underground, and all utility service areas and enclosures shall be screened from view with landscaping and decorative barriers or baffle treatments, as approved by the County's and/or City's Planning Department (as applicable). Section 2. Easements for Drainage. Declarant hereby creates and reserves nonexclusive easements appurtenant to each Lot in the Project for surface and/or subsurface drainage according to the patterns and drainage systems established in accordance with the approved grading plans for the Project, as well as according to the actual, natural and existing patterns for drainage (i.e., drainage from property adjacent to the Project). Each Owner covenants and agrees that s/he shall not obstruct or otherwise interfere with said drainage patterns of waters from adjacent Lots in the Project over his or her Lot or any drainage devices originally installed by Declarant, or in the alternative, that in the event it is necessary and essential to alter said drainage pattern or drainage devices for the protection and use of his or her Lot, he will obtain approval from the County, City, or other governmental agency having jurisdiction. As required by the County, all drainage easements shall be kept free of buildings and obstructions. Section 3. Easements for Construction and Sales. De- clarant hereby reserves, for a period of five (5) years from the recordation of this Declaration or until all Lots in the Project and Annexation Property are sold (and escrows closed), whichever occurs first, nonexclusive easements for access, ingress, and egress in, on, over, under, across, and through the Project as necessary to construct the Residences and all other Improvements within the Project, and to carry on normal sales activity, including the operation of a models complex and sales office, and the display of promotional signs and exhibits in connection with the sale or lease of Lots in the Project. Furthermore, nothing in this Declaration shall limit the right of Declarant to establish additional licenses, easements, and rights -of -way in favor of Declarant, utility companies or others as may, from time to time, be reasonably necessary for the development of the Project. The foregoing rights established and reserved by Declarant shall be subject only to the applicable regulations and requirements of the County and/or City. The foregoing rights of Declarant may be assigned to any successor to 'all or part of Declarant' s interest in the Property or Annexation Property by an express assignment re- corded in the Office of the County Recorder. 52019.001-15960.FCM 121009 - 1 0 - Section 4. Easements for Encroachments. Declarant hereby creates and establishes a nonexclusive easement appurtenant to each Lot on, over and across those portions of any adjacent Lot not to exceed one foot (11) for the encroachment by any founda- tions, footings, eaves or other overhangs, wing walls and/or chimneys originally constructed by Declarant. Additionally, there are hereby created and established nonexclusive easements ap- purtenant to any Lot on, over, and across those portions of any such adjacent Lot not to exceed one foot (11) for the encroachment by any Improvement resulting from any subsequent settling or shifting of any Improvements. All of the aforesaid encroachments shall be measured at the point of encroachment along a line which is perpendicular to the common property line between the affected Lots. Section 5. Access to Slopes and Drainage Ways. Each Owner agrees for such Owner and such Owner's successors in interest, by the acceptance of the deed to a Lot, to permit free access by Owners of other Lots to slopes or drainage ways, if any, located on the Lot, which slopes or drainage ways affect said other Lots, when such access is essential for the maintenance or permanent stabilization of such slopes or for the maintenance of drainage ways for the protection or use of said other Lots. Section 6. Declarant Easements. Declarant hereby reserves to itself, together with the right to transfer same, easements of access, ingress and egress over and under each Lot for installation and maintenance of utilities and drainage facilities shown on the Subdivision Map or Maps for the Project and for construction, installation, operation, replacement, repair and maintenance of all utility and service lines, systems and other devices and Improvements which may be reasonably necessary for the development and marketing of other Lots within the Project, including but not limited to water, sewer, gas, telephone, electricity, television, cable television, and storm and water drains (collectively, the "Facilities"). Each Owner by accepting a deed to a Lot expressly consents to the foregoing easements and rights of way and authorizes and appoints Declarant (so long as Declarant owns one or more Lots in the Project) as attorney in fact of such Owner to execute any and all instruments particularly describing and conveying such easements or rights of way. Within the location of Facilities easements and rights of way, no Improvement shall be planted or placed which may interfere with the use, maintenance or operation of the Facilities or which may be in violation of any ordinance or law of any applicable governmental authority. Section 7. Easements to the City and County. There is hereby created, reserved, and granted to Declarant, together with the right to grant and transfer same to the City and County, easements for ingress and egress over the Project for the purpose of permitting the City and County to perform various obligations and responsibilities within or adjacent to the Project (e.g., 52019.001-15960.FCM 121009 - 11 - public services, including, but not limited to, the right of police, fire, ambulance and other public services). Section 8. Regional Trail Easement. Portions of the Lots are subject to a 20' regional trail easement in favor of the Valley -Wide Recreation and Parks District, as set forth on the final map of Tract 28206-2. Owners and other residents of the Project may experience and/or be exposed to significant noise, interference with privacy, trash, debris, traffic congestion, and other adverse impacts relating to the construction, use, and maintenance of the regional trail. Section 9. Other Easements. In addition to the foregoing easements, the Lots in the Project are subject to all other easements granted or dedicated on the recorded map of Tract 28206-2, if any, and/or recorded in the Official Records of the Riverside County Recorder's Office. ARTICLE IV USE RESTRICTIONS The Project shall be occupied and used only as follows: Section 1. Private, Single-FamilV Dwelling. Each Lot shall be used for residential purposes, for the construction of one (1) private, single-family Residence, and other related improve- ments, and for no other purposes whatsoever (subject to limitations set forth in the Entitlements) , except such temporary uses as shall be permitted by Declarant while the Project is being developed and Lots are being sold by Declarant. Section 2. Prohibited Dwelling Structures. At no time shall any garage, basement, attic, outbuilding, tent, shack, shed, trailer, camper, motorhome, boat, or structure of any kind within the Project, except for the one (1) Residence constructed upon each Lot, be used as a residence or dwelling except as may be approved by the County and/or City, as applicable. Section 3. Signs. Subject to the provisions of Cali- fornia Civil Code, Sections 712, 713, 1353.5 and 1353.6, and Government Code Section 434.5, as same may be amended from time to time, no signs of any kind shall be displayed to the public view on or from any Lot, except such signs as may be used by Declarant for a period of time not to exceed five (5) years from recordation hereof in connection with the development of the Project and sale of Lots, and except "for sale," "for lease" or "for exchange" signs of reasonable size on any Lot. All signs permitted under this Section shall conform with all applicable governmental regulations, including, but not limited to, a sign ordinance. Section 4. Animals. No animals of any kind shall be raised, bred or kept in any Lot, except that common domesticated 52019.001-15960.FCM 121009 - 12 - household pets such as dogs, cats, birds in bird cages, or fish may be kept in reasonable numbers on each Lot; provided, however, no animal shall be kept, bred or maintained for any commercial purpose. Each Owner shall be responsible for cleaning up any excrement or other unclean or unsanitary condition caused by said animal within the Project. Every person bringing an animal upon or keeping an animal in the Project shall be liable pursuant to the laws of the State of California to each and all persons for any injury or damage to persons or property caused by such animal. All animals must be kept either within an enclosed portion of a Lot or secured on a leash held by a person capable of controlling such animal. Section 5. Quiet Em ovment. No Owner shall permit or suffer anything to be done or kept upon such Owner's Lot which will obstruct or interfere with the rights of quiet enjoyment of the other residents in the Project, or annoy them by unreasonable noises or otherwise, nor will any Owner commit or permit any nui- sance on the premises or commit or suffer any immoral or illegal act to be committed thereon. Each Owner shall comply with all of the requirements of the Board of Health and of all other govern- mental authorities with respect to his or her respective Lot, and shall remove all rubbish, trash and garbage from said premises. All clotheslines, refuse containers, wood piles, storage boxes, tools, and equipment shall be prohibited from any Lot, unless obscured from view by a fence or other appropriate screen. Section G. Structural Changes. There shall be no con- struction, installation, modification, alteration, or removal of any external Improvement whatsoever in the Project without the prior written approval by the County and/or City, if necessary, except such works of construction by Declarant during the development of the Project. Subject to this Declaration, each Owner has the right to modify his/her Residence and the route leading to the front door of said Residence, at such Owner's sole cost and expense, in order to facilitate access to the Residence by persons who are blind, visually handicapped, deaf, or physically disabled, or to alter conditions which could be hazardous to such persons. Nothing in this Declaration shall require the installation of an Improvement in any manner which violates Civil Code Section 1353.7 (relating to the installation and repair of a roof). As required by the County, the front yard setback is 20 feet; the side yard setback is 5 feet; the street side yard setback is 10 feet; the rear yard setback is 10 feet, except where a rear yard abuts a street, in which case the setback shall be the same as the front yard setback; the maximum permissible height of any building is 40 feet; no more than 50 0 of a Lot may be covered by a structure; residential driveway approaches must be a minimum of 12 feet and a maximum of 30 feet in width, and 20 feet of full height curb is required between driveways within any one property frontage; the separation between all buildings within the Project shall not be less than 10 feet; and fireplaces may encroach one (1) foot into the side yard setback. Except as allowed by the County's and/or 52019.001-15960.FCM 121009 - 13 - City's ordinances, as applicable, no encroachment into the setbacks is permitted. All wood fencing shall be treated with heavy stain to match the natural shade to prevent bleaching from irrigation spray. Section 7. Improvements. There shall be no construc- tion, alteration, or removal of any Improvement in the Project without the prior written approval, if necessary, of the County and/or City (as applicable). Section 8. Windows. No window in any Residence shall be covered, in whole or in part, inside or outside, with aluminum foil, newspaper, paint, or any other material inappropriate for such use. Section 9. Commercial Activity. Except such temporary uses as shall be permitted by Declarant while the Project is being developed and Lots are being sold by the Declarant or as approved by the County and/or City, as applicable, no professional, com- mercial, or industrial operations of any kind shall be conducted in or upon any Lot. Notwithstanding the foregoing, this Section shall not preclude an Owner from maintaining a home -office and conducting business activities therefrom on the following conditions: (a) there is no external evidence of such activity; (b) such activities are conducted in conformance with all applicable governmental ordinances (e.a., all applicable permits and licenses are obtained) and merely incidental to the use of the dwelling as a residence; (c) the patrons or clientele of such activities do not visit the residence or park automobiles or other vehicles within the Project; (d) the existence or operation of such activity is not apparent or detectable by sight, sound or smell from outside of the boundaries of the residence; and (e) such activities are consistent with the residential character of the Project and conform with the provi- sions of this Declaration. Section 10. Parking. Except as parking may otherwise be allowed by the County .and/or City (as applicable) on public streets, no Owner of a Lot in the Project shall park, store, or keep any vehicle except wholly within his or her garage or upon his or her driveway in such manner as to not extend onto any sidewalks in the Project. No Owner shall park, store, or keep on his or her Lot any large commercial type vehicle, including, but not limited to, any vehicle with three (3) or more axles or any vehicle which exceeds six thousand (6,000) pounds in weight. Recreational vehicle(s) may be stored (i) within a fenced sideyard area of an Owner's Lot, even if such vehicle(s) are visible from the street or public view; or (ii) if allowed by the County or City (as applicable) or by law, on the public streets. No Owner shall park any recreational vehicles in any other area of his Lot (i.e., the sideyard only - no parking recreational vehicles on driveways), or the Project except as may be allowed by the County or City (as applicable) on public streets. "Recreational vehicles" shall include, without limitation, trailers, boats, campers, trailer 52019.001-15960.FCM 121009 - 1 4 - coaches, buses, house cars, camp cars, motorhomes (if the size is larger than seven feet [71] in height and/or greater than one hundred twenty-four inches [12411] in wheel base length) , or any other similar type of equipment or vehicle. No Owner shall conduct major repairs, painting, or major restorations of any motor vehicle of any kind whatsoever within his or her garage, upon his or her Lot or elsewhere within the Project, except for emergency repairs thereto and then only to the extent necessary to enable movement thereof to a proper repair facility. No Owner shall park or store an inoperative vehicle on his or her 'Lot or in the Project for more than forty-eight (48) hours. As required by the County, all Residences shall have automatic roll -up garage doors. Garage doors shall be kept closed at all times when not in use. In any event, all vehicles shall be parked in compliance with applicable governmental ordinances. Owner acknowledges and agrees to confirm that the garage associated with Owner's Lot is adequate to accommodate the vehicles which Owner desires to park therein. Section 11. Solar Heating. All Owners shall have the right to place and maintain on their Residence or Lot equipment and facilities related to the installation and maintenance of individu- al solar heating systems. The installation and maintenance of any solar system by an individual Owner shall be subject to all applicable zoning district regulations and the Uniform Building Code, and associated ordinances. No solar heating panels or other solar energy collection equipment shall be installed on any portion of any Lot, or on any Improvement thereon, unless such equipment is installed in such location and in such manner as to be obscured from the view of other persons in the Project to the greatest degree practical without significantly decreasing its efficiency. Section 12. Declarant's Improvements. Nothing in this Article or elsewhere in this Declaration shall limit the right of the Declarant to construct or alter any Improvement to any Lot owned by Declarant prior to completion and sale of the entire Project. The rights of Declarant under this Declaration may be assigned by Declarant to any successor to all or any part of De- clarant's interest in the Property, as developer, by an express assignment incorporated in a recorded deed transferring such in- terest to such successor. Section 13. Antennas/Apparatus. No radio -station or shortwave operators of any kind shall operate from any Residence. Except as otherwise required by law, no Owner shall install, or cause to.be installed, or maintain any television, radio, "Citizens Band" (C.B.) antenna, satellite dish or other similar electronic receiving or broadcasting device (including those devices having a diameter or diagonal measurement of one meter or less) in the Project in such a manner as to be visible from the Lots, unless (1) no other location exists that would not significantly increase the cost of the installation, maintenance or use of the device or significantly decrease its efficiency or performance or preclude reception of an acceptable quality signal) and (2) the construction 52019.001-15960.FCM 121009 - 1 5 - and installation occurs in a manner which is in compliance with all applicable ordinances of the City, County, California Statutes (e.g., Civil Code Section 1376), and Federal Regulations, as each may be amended or revised from time to time. Section 14. Leasing. No Owner shall be permitted to rent or lease his or her Lot for transient or hotel purposes, or for a period of less than thirty (30) days. All rental and lease agreements shall be in writing and shall provide that the terms of such agreement shall be subject in all respects to the provisions of this Declaration, and that any failure by the tenant or lessee to comply with the terms hereof shall constitute a default under such agreement. Notwithstanding the foregoing, Declarant may require each Owner to comply with initial Owner occupancy/sale restrictions (e.g., requiring the Owner to physically reside in the Residence for a fixed time period and/or prohibiting the Owner from leasing the Residence during that time period). Section 15. Party Walls and Fences. Those Owners who have a common wall or fence adjoining their Lots, and such a wall or fence divides the Lots upon which their Residences are con- structed, shall equally have the right to the use of such wall or fence, except that each shall have the exclusive right to the use of the interior surface of the wall or fence facing his or her Lot. Neither Owner shall use any portion of the wall or fence so as to interfere with the use and enjoyment of the other Owner. In addition, neither Owner shall increase the height of the wall or fence beyond the height originally installed by Declarant or attach any structure, appendage, or other item to the wall or fence which might impair the view of another Owner within the Project, including, without limitation, any extension of the wall or fence, lattice work, green plastic privacy mesh, or shade. In the event that any portion of such wall or fence, except the interior surface of one (1) side, is damaged or injured from any cause, other than the act or negligence of either party, it shall be repaired or rebuilt at their joint expense. The construction of rear and side yard walls affects numerous Lots throughout the Project. In many situations, due to the construction of such walls, the footings thereof may protrude into the yard area of the respective Lot by up to one and one-half (1-1/21) to two feet (21) at varied depths. Some of these same walls may have sub -drains installed adjacent to such footings. Therefore, the Owners acknowledge and agree not to, under any circumstance, plant any tree, shrub or other landscaping, or build, erect or otherwise install any Improvement of any kind within two feet (21) of the rear or side yard of Owner's Lot, or which would impede or interfere with the sub -drain system adjacent to such wall, or impair the structural integrity of such wall. All retaining walls located on Lots in the Project shall be maintained by the Owner of such Lot. All perimeter walls and fencing adjacent to a public open space area or public street (including, without limitation, the exterior, interior, top, and structural integrity of such walls and fencing) shall be maintained by the Owners of the Lots on which such walls and fencing are located. 52019.001-15960.FCM 121009 - 1 6 - Section 16. Drilling. No oil drilling, oil development operations, oil refining, quarrying or mining operations of any kind shall be permitted upon or in any Lot, nor shall oil wells, tanks, tunnels or mineral excavations or shafts be permitted upon the surface of any Lot, or within five hundred feet (500' ) below the surface of the Project. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted upon any Lot. Section 17. View. Each Owner, by acceptance of a deed or other conveyance of a Lot, acknowledges that neither the City, nor the County, nor the Declarant, nor the members, representa- tives, employees, nor consultants of any of the foregoing, have made any representations whatsoever concerning the view, if any, that a particular Owner may enjoy from a Residence. There are no express or implied easements or rights whatsoever appurtenant to any Lot for view purposes or for the passage of light and air across any other Lot or any property not within the Project. Each Owner accepting a deed to a Lot hereby further expressly acknowledges and agrees that the walls and fences constructed by Declarant, and further construction, both within the Project and in the immediate vicinity of the Project may impair the view from such Owner's Lot, and each Owner hereby expressly consents to any such impairment. Each Owner further acknowledges and understands that property surrounding the Project may be developed or redeveloped in accordance with applicable City and County standards. Concerns pertaining to the future development of surrounding property should be addressed with the County and/or City (as applicable). Section 18. Refuse. Each Owner shall remove all rub- bish, trash, garbage, weeds, and other debris from his or her Lot. All such refuse which is put out for pickup by the County or City shall be contained in garbage cans, garbage bags, or other closed containers approved by the County or City, or appropriate entity having jurisdiction thereof. After pickup, each Owner shall promptly remove from the street and appropriately store all garbage cans and -other containers. All garbage cans and other containers, clotheslines, woodpiles, storage boxes, bicycles, tools, equipment, dog houses, and all stored goods shall be kept in an area on the Lot which is obscured from public view by a fence, wall or other screen. Generally, all garbage cans and other closed containers shall be exposed to the view of neighboring Lots for only a reasonable period of time, not to exceed twenty-four (24) hours before and after scheduled trash collection hours. Section 19. Landscaping. Each initial Owner shall install landscaping within twelve months following the close of escrow for his Lot from the Declarant. Each Owner shall maintain at all times all portions of his or her respective Lot (even those areas, if any, that are located outside a fenced portion of the Lot) and landscaping in a clean, safe, and attractive condition. At such time, if ever, that an Owner fails to maintain his or her landscaping in a satisfactory condition, each Owner shall have the 52019.001-15960.FCM 121009 - 17 - right, but not the obligation to pursue any appropriate remedy as provided herein or as allowed by law. As required by the County and/or City, all landscaping and irrigation in"the front yards of the Lots shall comply with the requirements of the Cityor the Eastern Municipal Water District or the Riverside County Guide to California Friendly Landscaping (whichever is applicable) and, if applicable to residential lots, Ordinance No. 859, as the same may be amended from time to time. Section 20, Water Softeners. No Owner shall install water softeners on the interior/exterior of the Residence, on a Lot, or be allowed to protrude through the walls or roof of the Residence unless the prior written approval is obtained from the County or City, as applicable and only if necessary, or applicable water district, only if necessary. Section 21. Electric Lines. Owners acknowledge that electric power lines may exist or be constructed within the vicinity of the Project. To the best of Declarant's knowledge, no state agency has established any setback or other limitations on construction of residential housing in the vicinity of electric power lines. Section 22. No Roof -Mounted Mechanical Equipment. As required by the City, roof -mounted mechanical equipment shall not be permitted within the Project. However, solar equipment or any other energy saving devices shall be permitted with City Planning Department approval (as applicable). Section 23. BMP Compliance. Each Owner shall be responsible for compliance with all applicable Best Management Practices and corresponding County Ordinances. Section 24. Hazardous or Toxic Waste. Nothing other than natural rain water may be discharged into the storm drains and storm drainage system located on private or public property. The National Pollutant Discharge Elimination System and Section 5650 of the California Fish and Game Code prohibit, among other things, discharging anything other than natural rain water into storm drainage systems. Toxic chemicals or hydrocarbon compounds such as gasoline, motor oil, antifreeze, solvents, paints, paint thinners, wood preservative and other such fluids shall not be discharged into any street, public or private, or into storm drains or storm water conveyance systems. Uses and disposal of pesticides, fungicides, herbicides, insecticides, fertilizers and other such chemical treatments shall meet federal, state, City and County requirements as prescribed on their respective containers. All Owners within the Project are required to comply with such restrictions. Section 25. Exemption of Declarant. Nothing in this Article or elsewhere in this Declaration shall limit, restrict, abridge or control, in any manner whatsoever, the rights of De- 52019.001-15960.FCM 121009 - 18 - clarant to complete the planning, development, grading, construc- tion, advertising, marketing, leasing and sales of the Residences and Lots, and all other property within the Project, including, without limitation, the following specific rights, which may be exercised by Declarant, its successors and assigns, or by its agents and employees, in conjunction with such development and marketing, so long as Declarant owns an interest in Tract 28206-2 or the Annexation Property: (a) The right to maintain and operate one (1) or more advertising, sales or leasing office(s), construction trailer, construction parking area, temporary utility facili- ties and/or lines, model complex(es) interior design and decorator center(s), within the Project; (b) The right to post and display from any Lot in the Project any sign, flag, banner, billboard or other advertising which Declarant may, in its sole discretion, deem appropriate, irrespective of size, color, shape or materials of such items; (c) Subject to any approvals of the County and/or City that may be required, the right to install, place, replace, construct, reconstruct, modify or remove any Improvement within the Project, as Declarant may, in its sole discretion, deem appropriate; (d) The right to conduct any commercial activity within the Project which reasonably relates to the develop- ment, marketing, leasing or sales of the Lots in the Project; (e) The right to park vehicles within the Project; and (f) The right to use driveways within the Project, which right shall also extend to prospective purchasers or lessees of the Lots or of other property within the Project. All or any portion of the rights of Declarant herein and elsewhere in this Declaration may be assigned by Declarant to any successor -in -interest in the Property or Annexation Property by an express written assignment recorded in the Office of the County Recorder. ARTICLE V MAINTENANCE Section 1. Maintenance of Lots. Unless otherwise maintained by the City, County or applicable governmental entity (e.g., Valley -Wide Recreation and Parks District or a Landscape and/or Lighting Maintenance District), each Owner shall maintain 52019.001-15960.FCM 121009 - 1 9 - such Owner's respective Lot (even if located outside the "fenced" portion of a Lot), together with the Residence and all Improvements thereon (including, but not limited to, all landscaping, fences, walls, retaining walls) in a neat, clean, safe, sanitary, attrac- tive, and operational condition at all times, and shall bear all costs thereof. Any slopes and terraces on a Lot shall be main- tained so as to prevent any erosion thereof upon adjacent streets, other Lots in the Project, or adjoining property. In addition, each Owner shall maintain any underground drainage pipes, catch basins, terrace drains or other erosion control devices installed by Declarant on such Owner's Lot. Declarant has reserved the right to amend this Declaration to set forth procedures and standards for the maintenance and operation of the Lots ("Maintenance Obliga- tions") . Each Owner may need to periodically review and adjust the Maintenance Obligations, as deemed reasonable and prudent to respond to the changing needs of his Lot. Notwithstanding the foregoing, Declarant may, by written notice to the Owners, supple- ment or amend the Maintenance Obligations from time to time. Each Owner shall faithfully follow all of the Maintenance Obligations, and each Owner shall cause any tenant of Owner to follow them as well. Each Owner shall provide the Maintenance Obligations (including all supplements and amendments thereto), consumer products and consumer good manufacturer information, and warranties to any person who purchases the Lot from Owner at any time and shall require any such subsequent purchaser to provide said Maintenance Obligations (including all supplements and amendments thereto) to any person or entity who purchases the Lot from such subsequent purchaser. Section 2. Maintenance Guidelines. Section 907 of the California Civil Code requires each homeowner to follow all reasonable maintenance obligations and schedules communicated in writing to a homeowner by the builder and products manufacturers, as well as commonly accepted maintenance practices. The mainte- nance guidelines for the Residence and Lot may be provided by Declarant (or its assignee) and/or recorded against the applicable Lots. Each Owner may need to update or revise the maintenance guidelines and schedules set forth in the Maintenance Obligations from time to time to ensure that his Residence or Lot are main- tained in accordance with current commonly accepted maintenance practices. Section 3. Maintenance of Landscaping, Fences, Walls. Unless otherwise maintained by the City, County, Valley -Wide Recreation and Parks District, or an applicable community facilities district or landscape maintenance district, each Owner shall maintain any landscaping, fence or wall (including but not limited to retaining walls) in that portion of the public right-of- way median strip, adjoining public parkway, if any, located within such Owner's Lot in a neat, clean, safe, sanitary, and attractive condition at all times, and shall bear all costs thereof. Mainte- nance by the respective Owners shall include, but not be limited to, normal care and irrigation of the landscaping, repair and 52019.001-15960.FCM 121009 - 2 0 - replacement of plant materials, irrigation systems as necessary, and general cleanup of the landscape and open areas, walkways, walls, and fences, removal of graffiti (only as required, if at all, by the conditions of approval for the Project - unless otherwise part of the City's and/or County's graffiti removal program), and/or the repair of any Project signage (i.e., if such signage is located on a Lot). Each Owner understands that neither the County, nor the City, nor the Valley -Wide Recreation and Parks District, nor any landscape maintenance district -is responsible for any costs associated with the maintenance of the Project perimeter walls and/or signage. Section 4. Damage to Residence. If all or any portion of a Residence is damaged or destroyed by fire or other casualty, the Owner shall either promptly rebuild the Residence or clear his or her Lot of all debris and restore his or her Lot to a neat, safe, and attractive condition. Section 5. Damage to Walls and Fences. Each Owner whose Lot, or portion thereof, is improved with a block wall or fence, as required in the conditions of approval for the Property, shall be responsible for maintaining, repairing, and replacing said Improvements in the same clean, safe, sanitary, and attractive condition as originally provided by the Declarant. Any and all improvements or modifications thereto shall be in substantial conformance with the original design and materials utilized by the Declarant. Section 6. Drainage. All drainage devices, includ- ing, but not limited to, drainage swales and area drains, located on each Owner's Lot shall be maintained by said Owner in a clean, safe, and attractive condition at all times, and free of any and all debris. In the event said Owner does not comply with this maintenance responsibility and the drainage device(s) impacts adjoining Lots, the Owner of said affected Lot is hereby granted an easement across the adjacent Lot as necessary to maintain, clear, and repair the drainage devices to ensure proper drainage. In addition, the City is granted a nonexclusive easement over each Owner's Lot for the.purposes of inspecting and, if the Owner fails to comply with his/her maintenance responsibilities, clearing and repairing the drainage devices• on the Lot to ensure proper drainage. If authorized by the City's ordinances, the Owner shall be responsible for the cost of the City's work. 52019.001-15960.FCM 121009 - 2 1 - ARTICLE VI ANNEXATION OF ADDITIONAL PROPERTY Additional property may be annexed to and become subject to this Declaration as set forth in this Article. Section 1. Development of the Project. The Declarant intends to sequentially develop the Annexation Property on a phased basis; however, Declarant may elect not to develop all or any portions of said Annexation Property, to annex such portions of the Annexation Property in Phases of any size or to develop more than one (1) Phase in any order and at any given time, subject to the provisions of this Article. Section 2. Annexation Pursuant to General Plan of Development. Declarant shall have the right, subject to the provisions of this Article, annex all or any portions of the Annexation Property, thereby making such Annexation Property subject to this Declaration, without the consent of any Owner of a Lot or further approval of the City or County, provided and on condition that: (a) Any annexation pursuant to this Section shall be allowed when the proposed annexation is in substantial conformance with the overall general plan of phased develop- ment for the Project originally submitted to and approved by the DRE with the Phase 1 Final Subdivision Public Report application (e.g., the Annexation Property as depicted and/or described on Exhibit "A"), or as subsequently approved by the DRE; and (b) A Notice of Annexation, as described in Section 3 of this Article, shall be recorded covering the designated portions of the Annexation Property. Section 3. Notice of Annexation. The annexation of additional property authorized under this Article shall be made in filing of record a Notice of Annexation, or similar instrument, covering said additional property, and the Notice of Annexation shall expressly provide that the scheme of this Declaration shall extend to such additional property. The Notice of Annexation may contain such complementary additions to and modifications of the Protective Covenants set forth in this Declaration which are neces- sary to reflect the different character, if any, of the annexed property, including, but not limited to, marketing and selling vacant Lots, the architectural guidelines for any construction thereon, maintenance responsibilities of the Owners in this annexed property, and which are fair, reasonable, and appropriate, and are not inconsistent with the general scheme of this Declaration. Except as set forth in this Section, no Notice of Annexation shall add, delete, revoke, modify or otherwise alter the Protective Covenants set forth in this Declaration. 52019.001-15960.FCM 121009 - 2 2 - Section 4. Effective Date of Annexation. Any Notice of Annexation recorded on a subsequent Phase of the Project shall become effective immediately upon the first close of an escrow for the sale of a Lot in said Phase, as evidenced by the recordation of the first instrument of conveyance for said Lot. Section 5. Amendments to Notice of Annexation. Not- withstanding any other provisions in this Declaration to the con- trary, a Notice of Annexation may be amended by the Declarant on the following conditions: (a) Such amendment applies only to the annexed property described in said Notice of Annexation; and (b) Such amendment shall in no way contradict, revoke or otherwise alter any of the Protective Covenants set forth in this Declaration. Section 6. Right of De -Annexation. Declarant hereby reserves the right to delete all or any portions of the Annexation Property which may be annexed to the Project pursuant to this Declaration, and to delete said property from the scheme of this Declaration, provided and on condition that (i) the de -annexation shall be made prior to the first close of an escrow for the sale of a Residence in the property to be de -annexed, and (2) the de - annexation is recorded in the same manner as the applicable Notice of Annexation. Section 7. Parties to Notice of Annexation. For so long as Declarant has the right to annex all or any portion of the Annexation Property into the Project, each Notice of Annexation covering property owned by Declarant shall be executed only by Declarant. Declarant's execution of any Notice of Annexation shall evidence Declarant's consent thereto. ARTICLE VII GENERAL PROVISIONS Section 1. Enforcement. (a) Enforcement Rights. The Owner of any Lot in the Project, including the Declarant, shall have the right, but not the obligation, to enforce, by proceedings at law or in equity, any or all of the covenants imposed by this Declaration, including, without limitation, the right to prosecute a proceeding, at law or in equity, against the person or persons who have violated, or are attempting to violate, any of said covenants, to enjoin or prevent them from doing so, to cause said violation to be remedied and/or to recover damages for said violation. In accordance with any applicable ordinance of the City, the City may be allowed to 52019.001-15960.FCM 121009 - 2 3 - maintain the Lots and place a special assessment on the tax bills of the individual Lot Owners in the event said Owners fail to maintain said Lots in accordance with the provisions of this Declaration. (b) Violation of Covenant Deemed Nuisance. The result of every act or omission whereby any of the covenants contained in this Declaration are violated, in whole or in part, is hereby declared to be and constitutes a private nuisance, and every remedy allowed by law or equity against a private nuisance shall be applicable against every such result and may be exercised by any Owner, including the Declarant, or by such Owner's successors in interest. Nothing herein shall prevent the City from abating a public nuisance. (c) Remedies Are Cumulative. The remedies herein provided for breach of the covenants contained in this Dec- laration shall be deemed cumulative, and none of such remedies shall be deemed exclusive. (d) Failure to Enforce Covenants. The failure of any Owner, including the Declarant, to enforce any of the covenants contained in this Declaration shall not constitute a waiver of the right to enforce the same thereafter. ( e ) Ef fect of Breach on Mortgagees. A breach of the covenants contained in this Declaration shall not affect or impair the lien or charge of any bona fide mortgage or deed of trust made in good faith and for value on any Lot; provided, however, that any subsequent Owner of such Lot shall be bound by said covenants, whether or not such Owner's title was acquired by foreclosure, a trustee's sale or otherwise. (f) Fines. Each Owner agrees, by the acceptance of his or her deed, that recovery of damages at law for any breach of the provisions of this Declaration would not be an adequate remedy. In order to encourage compliance, deter non- compliance, and enable the effective enforcement of this Declaration, the Declarant (so only as long as Declarant owns at least one Lot in the Project) is authorized to establish and collect fines and penalties, in addition to any fines and penalties which may be imposed by the City or County pursuant to the appropriate authority of applicable municipal codes, for the breach of any provision of this Declaration which is not cured or which reoccurs after the violating Owner has received written notification of said violation. The fines and penalties shall be determined by taking into account the: (1) violation, (2) desirability of deterring future violations, (3) the expense related to alternative legal action, and (4) all other reasonable related factors. All such amounts collected shall be deposited in a bank trust account and shall 52019.001-15960.FCM 121009 - 2 4 - be applied to expenses incurred in connection with enforcement of said provision or restriction. (g) Prior to filing a civil action by an Owner solely for declaratory relief or injunctive relief, or for declaratory relief or injunctive relief in conjunction with a claim related to the enforcement of this Declaration, the parties may be required to comply with Civil Code Section 1369.510, et sec., if applicable. Failure to comply with the prefiling requirements of Section 1369.510 et sew. of the Civil Code may result in the loss of the right to sue regard- ing enforcement of the applicable management documents. Upon motion by any party for attorneys' fees and costs as the prevailing party, the court, in determining the amount of the award, may consider a party's refusal to participate in alternative dispute resolution prior to the filing of the action. Section 2. Dispute Resolution Procedure Notices Pursuant to SB 800. The Declarant and each Guest Builder shall be responsible for recording a Supplemental Declaration against the Lots owned by Declarant or such Guest Builder, which sets forth: (1) the dispute resolution procedures that pertain solely to the Lots owned by the Declarant and/or such Guest Builder; and (2) all notices given by such Declarant or such Guest Builder pursuant to SB 800 that pertain solely to the Lots owned by Declarant or such Guest Builder. Section 3. Electrical Power Lines. Underground electric transmission and distribution lines are located within and in the immediate vicinity of the Project. Numerous scientific and epidemiological studies have been conducted as to whether there are any adverse health effects from magnetic and electric fields generated by electric power lines. Further information of this subject is available from the Electric and Magnetic Fields Program, California Department of Health Services, 2151 Berkeley Way, Annex 10, Berkeley,.California. Section 4. Severability. Invalidation of any one of these covenants by judgment or court order shall in no way affect any other provisions hereof, which shall remain in full force and effect. Section 5. Term. The Covenants set forth in this Dec- laration shall run with and bind the Project, and shall inure to the benefit of and be enforceable by the City and County and by any Owner of a Lot in the Project, and such Owner's heirs, successors, and assigns, for a term of sixty (60) years from the date this Declaration is recorded, after which time said Covenants shall be automatically extended for successive periods of ten (10) years, unless an instrument, signed by the then Owners of a majority of the Lots in the Project, agreeing to terminate said covenants and restrictions, in whole or in part, has been recorded within one (1) 52019.001-15960.FCM 121009 - 2 5 - year prior to the termination of the initial sixty (60) year terms, or within one (1) year prior to the termination of any successive ten (10) year period. Section 6. Covenants Running With the Land. Each of the Covenants provided for in this Declaration shall be deemed to be established upon the recordation of this Declaration, and shall henceforth be deemed to be covenants running with the land for the use and benefit of the Lots, and superior to all other encumbrances applied against or in favor of any portion of the Project which are the subject of this Declaration. In furtherance of the easements provided for in this Declaration, the individual grant deeds to the Lots may, but shall not be required to, set forth said easements. Section 7. Construction. The provisions of this Dec- laration shall be liberally construed to effectuate its purpose of creating a uniform plan for the development, use, occupancy, and enjoyment of the Project. The Article and Section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construc- tion. Section 8. Sinaular Includes Plural. Whenever the context of this Declaration may so require, the singular shall include the plural, and the masculine shall include the feminine and neuter. Section 9. Amendments. Notwithstanding any other provisions of this Section 9, as long as Declarant owns any portion of the Property, Declarant may unilaterally amend this Declaration by recording an instrument signed by Declarant, in order to: (i) conform the Declaration to applicable law, (ii) correct typo- graphical or technical errors to clarify the language, (iii) insert document dates and recording information, (iv) conform the Declara- tion to the requirements of the Veterans Administration, the Federal Housing Authority, the Federal National Mortgage Associa- tion, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, the California Department of Real Estate, the City, or the County, (v) record maintenance obligations and schedules for any Improvements on the Property, and (vi) accommodate dispute resolution provisions and provisions of SB 800 (as defined in Article VII, Section 11, of this Declaration). Except as otherwise provided herein, this Declaration may be amend- ed only by the written assent of the Owners of not less than sixty- seven percent (67%) of the Lots in the Project. This amendment provision shall not be amended to allow amendments by less than the percentage set forth hereinabove, nor shall any provision herein regarding DeclarantIsrights be amended without DeclarantIswritten consent (e.g., provisions relating to the resolution of Disputes). Notwithstanding the foregoing, any Owner may petition the Superior Court of the County for an order reducing the necessary percentage required under this Section to amend this Declaration, except for those provisions requiring Declarant's consent. The procedure for 52019.001-15960.FCM 121009 - 2 6 - effecting this petition is set forth in Section 1356 of the California Civil Code, as same may be amended, from time to time. An amendment made in accordance with the provisions set forth hereinabove shall be effective when it is set forth in writing, executed before a notary public by the requisite number of Owners and recorded in the Office of the County Recorder upon such recordation, the amendment shall be effective and binding upon all Owners and all mortgagees, regardless of whether such Owner or such mortgagee consented to such amendment. Notwithstanding any provision to the contrary, herein, this Declaration shall not be terminated, "substantially" amended, or property deannexed therefrom absent the prior written consent of the Planning Directors of the City and County of Riverside or the City's and County's successor -in -interest. A proposed amendment shall be considered "substantial" if it affects the extent, usage, or maintenance of the "common area" established pursuant to the Declaration. In the event of any conflict between this Declaration and any other applicable set of Bylaws, Articles of Incorporation, or set of Rules and Regulations, if any, this Declaration shall control. Section 10. Attorneys' Fees. In the event any Owner of any Lot shall commence legal proceedings against the Owner of any other Lot to enforce the covenants of this Declaration, or to declare rights hereunder as the result of any breach, or claim of breach, of said covenants, except as may otherwise be stated in the Dispute Resolution Procedure set forth in a Supplemental Declara- tion, the prevailing party shall recover the cost of the suit, arbitration, or alternative dispute resolution, in addition to its costs of suit, including reasonable attorneys' fees, as may be fixed by the court. Section 11. No Warranty of Enforceability. While Declarant has no reason to believe that the restrictive covenants contained in this Declaration are or may be invalid or unenforce- able for any reason or to any extent, Declarant makes no warranty or representation as to the present or future validity or enforce- ability of any such restrictive covenant. Any Owner acquiring a Lot in the Project in reliance on one or more of such restrictive covenants shall assume all risks of the validity and enforceability thereof, and, by acquiring the Lot, agrees to hold Declarant harmless from any injury or damage therefrom. Section 12. Exhibits. Each and every exhibit attached hereto, if any, shall be incorporated herein by reference. All depictions in such Exhibits are for illustrative purposes only and the "as -built" condition by Declarant shall be controlling. Section 13. Project Disclosures. (a) Conditions of Approval. The Project is subject to all terms and conditions of approval set forth in the County's resolutions approving Amended Tentative Tract Map No. 52019.001-15960.FCM 121009 - 2 7 - 28206 and the development of the Project. Neither this Declaration nor any contract of sale, lease, or other written document or any means or method shall be established, or shall attempt to establish, any requirement, restriction, or limitation on the Declarant, or any person, individual or entity, which would operate, directly or indirectly, to prevent or preclude any other developers of the Property or Project, or any person, individual, or entity, in complying with all applicable terms and conditions of approval set forth in the County's resolutions approving Amended Tentative Tract Map No. 28206 and other City and County ordinances, rules, policies, or regulations. (b) Prior Use of Project Site. Based on investiga- tions conducted by independent consultants, it is Declarant's understanding that the Project site was previously used as vacant land and for agricultural and dairy purposes. There may have been other prior uses of the Project site as well. As a result of the prior usage of the Project site, pesticides and other chemicals may be present in the soil and/or ground- water at the Project site. Neither soil nor groundwater should be ingested. Each Owner should investigate this matter to his/her own satisfaction prior to purchasing a Lot in the Project. Declarant makes no representations or warranties concerning the prior use of the Project site. (c) Detention Basins. If the Project is completed as currently planned, detention basins will be located within Tract 28206-1. Other detention basins may also be located in the vicinity of the Project. (d) Airports. The Project is located within the vicinity of the French Valley Airport and other airports. Although the Project is not currently considered to be within an "airport influence area" (as defined below) , this notice is given pursuant to Civil Code Section 1353: NOTICE OF AIRPORT IN VICINITY This property may be presently located in the vicinity of an airport, within what is known as an airport influence area (i.e., an area in which current or future airport -related noise, over- flight, safety, or airspace protection factors may significantly affect land uses or necessitate restrictions on those uses as determined by an airport land use commission). For that reason, the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to, and should consider what airport annoyanc- 52019.001-15960.FCM 121009 - 2 8 - es, if any, are associated with the property before you complete your purchase and determine whether such a location and airport annoyances are accept- able to you. (e) Streets and Highways. The Project is located in close proximity to the 215 freeway and several major thoroughfares, including, without limitation, Leon Road, Scott Road, and Winchester Road. Owners and other residents of the Project may experience, and/or be exposed to, significant noise, odors, air pollution, diesel fumes, bright lights, traffic congestion, and other adverse impacts relating to the use and maintenance of the freeway and thoroughfares. (f) Mount Palomar Observatory. The Project is subject to lighting restrictions as required by County Ordinance 655, which are intended to reduce the effects of night lighting on the Mount Palomar Observatory. All proposed outdoor lighting systems shall be in conformance with County Ordinance 655. Within the Mount Palomar Special Lighting Area, as defined in County Ordinance 655, low pressure sodium vapor lighting or overhead high pressure sodium vapor lighting with shields or cutoff luminaries, must be utilized. (g) Valley -Wide Recreation and Parks District. As required by the County, the Project will be annexed to the Valley -Wide Recreation and Parks District ("District"), a special assessment district established to maintain public landscaped areas, parks and open space areas. If the Project is completed as currently planned, the District will own and maintain the detention basins located within Tract 28206-1, the 20-foot regional trail easement located over portions of the Lots within Tracts 28206-1 and 28206-2, and the public park and open space within Tract 28206-1. Owners will be subject to any taxes, assessments and obligations of the District. (h) Landscaping and Lighting Maintenance District. As required by the County, the Project will be annexed to Landscaping and Lighting Maintenance District No. 89-1- Consolidated for graffiti abatement of walls and other permanent structures, along County and/or City maintained roads right-of-way, maintenance of traffic signals, and maintenance of landscaping along public roads. Owners will be required to pay assessments to such district. (i) Community Facilities District. The Project is located within the boundaries of Community Facilities Dis- tricts 05-8 and 2006-2. Owners of Lots in the Project will be subject to special taxes of the Community Facilities District. 52019.001-15960.FCM 121009 - 2 9 - (j) Sewer Backf low Valves. As required by the County, certain Lots in the Project will have sewer backflow valves. (k) Southwest Detention Center. The Southwest Detention Center is located near the intersection of Winches- ter Road and Auld Road in the City of Murrieta. The Southwest Detention Center is a maximum security jail that holds men and women for a maximum of two years before they are sent to prison. Further information concerning the Southwest Deten- tion Center may be obtained by calling the center at (909) 696-3050. (1) Waiver. Each Owner, for and on behalf of himself and the members of his family, his tenants, lessees, guests and invitees, expressly approves all of the foregoing conditions and risks, and waives all causes of action and covenants not to sue the City, County, the Declarant, and their respective directors, officers, members, employees, agents and consultants for any damages or injuries which may arise from or relate to any of such conditions and/or risks. (Signature Page To Follow) 52019.001-15960.FCM 121009 - 3 0 - IN WITNESS WHEREOF, the undersigned, being the Declarant, has executed this Declaration on the day and year first set forth hereinabove. "DECLARANT" CADO GARBANI LLC, a California limited liability company By: CADO Management LLC, a Delaware limited liability company, its Managing Member By: Zikakis Asset Management, LLC, a California limited liability company, its Sole Member By: Capstone Asset Management, Inc., a California corporation, its Managing member B { Y� Alex Zikaki President STATE OF CALIFORNIA ] ss. COUNTY OF Sa.n On 14 , 2009, before me,a(San m a Notary Public in and for said State, personally appeared Alex Zikakis, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument, the person or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS hand ature Notary Public 52019.001-15960.FCM 121009 and official seal. Slit; BMTROM Commission # 1667941 Notary Public - California San Diego County (SEAL) emyComm. Explres Jun 16, 2010 -31- CONSENT OF LIENHOLDER AND SUBORDINATION OF LIEN The undersigned bene-fic,iary under that certain'Deed of Trust recorded on March 17.,-20,09,-as Instrument No. 2009-01278..22, in the Official Records of 'Riverside County, California, agrees that the lien of the Deed of '.Trust shall be junior and subordinate and subject to the attached Declaration of Covenant's,'Conditions and Restrictions, and Reservation of Basements for Terra Bella ("Decla- ration"'), to any Notice 'of Annexation recorded pursuant to the Article herein entitled "Annexation of Additional Property" ("Notice of Annexation"), and to any amendments to the Declaration and/or Notice of Annexation. DATED: , l 1 0o09 "LIENHOLDER" SILVERGATE BANK BY; Its: evpL� f BY: Its: STATE OF CALIFORNIA ) COUNTY OF On f)L_Brrtbtr t/ , 2009, before me, .Tu �L-1, M, %"Lj[�e_5 , a Notary PubliL"wt, in and for said State,- personally appeared lbaz*- S and , who proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacity, and that by their signatures on the instrument, the persons or the entities upon behalf of which the persons acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ZIOV01 511V 8"3 WWO3 WITNESS my hand and official seal. Aurrao aEam utg 11MIReO 0114nd AMON L G L 608 L U01891=03 S31MONN IN Himr SigiiKture of Notary Public (SEAL) 52019.001-15960.FCM 121009 CONSENT OF LIENHOLDER AND SUBORDINATION OF LIEN The undersigned beneficiary under that certain Deed of Trust recorded on August 21, 2009, as Instrument No. 2009-0436497, in the Official Records of Riverside County, California, agrees that the lien of the Deed of Trust shall be junior and subordinate and subject to the attached Declaration of Covenants, Conditions and Restrictions, and Reservation of Easements for Terra Bella ("Decla- ration"), to any Notice of Annexation recorded pursuant to the Article herein entitled "Annexation of Additional Property" ("Notice of Annexation"), and to any amendments to the Declaration and/or Notice of Annexation. DATED: December 16, 2009 "LIENHOLDER" ARCH INSURANCE COMPANY 1� r BY: y W. Carlstrom ts. Vice President �x BY - STATE OF CALIFORNIA- ss. COUNTY OF Los Angeles On December 16 2009, before me, Natalie Burkhart a Notary Public in and for said State, personally appeared Larry W Carlstrom and n/a who proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacity, and that by their signatures on the instrument, the persons or the entities upon behalf of which the persons acted, executed the instrument. State of correct. I certify under PENALTY OF PERJURY under the laws of the California that the foregoing paragraph is true and WITNESS my hand and official seal. &Ah,-t Signature of Notary Public 52019.001-15960.FCM 121009 NATALIE 6UMOMT Co"wnkdon # 1786762 Notary PJft-Cdlfomlo Loa ArgpW County ILI Comm. Eg*a Jan 11, 2012 (SEAL) EXHIBIT "A" ANNEXATION PROPERTY (not applicable) 52019.001-15960.FCM 121009