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Last Revised: 03/05/2014 After recordation, return to: McClure and Grigsby, P.A. 3511 Bonita Bay Blvd., Suite 2 Bonita Springs, Florida 34134 THIS DOCUMENT CONSTITUTES A SUBSTANTIAL REWORDING OF THE DECLARATION AS PREVIOUSLY AMENDED. SEE PRIOR DOCUMENTS FOR CHANGES TO PRESENT TEXT AMENDED AND RESTATED DECLARATION OF CONDOMINIUM OF WATERSIDE I AT BAY BEACH, A CONDOMINIUM This Amended and Restated Declaration of Condominium of Waterside I at Bay Beach is made by WATERSIDE I AT BAY BEACH CONDOMINIUM ASSOCIATION, INC., a Florida not-for-profit corporation (“Association”) as of this _____ day of _________________, 2014. WHEREAS, Waterside at Bay Beach, Ltd., a Florida limited partnership, (“Developer”) as developer of the Waterside I at Bay Beach community recorded a Declaration of Condominium of Waterside I, a Condominium, on June 6, 1997, at Instrument No. 4181105 in the Public Records of Lee County, Florida (“Original Declaration”) and subsequent amendments were recorded thereafter (collectively, “Declaration”); WHEREAS, Developer has assigned to the Association all of its right, title and interest in the Declaration; and WHEREAS, the Association wishes to further amend and restate the Declaration in accordance with the terms and conditions set forth below. NOW, THEREFORE, the Association hereby amends and restates the Declaration as follows: 1. THE LAND. The Developer owned title in fee simple to certain real property located in Lee County, Florida, as more particularly described in Exhibit “A.” 2. SUBMISSION STATEMENT. In the Original Declaration, the Developer submitted the land described in Exhibit "A" and all improvements erected thereon, all easements, rights and appurtenances belonging thereto, and all other property, real, personal or mixed, located thereon and intended for use in connection therewith, to the 1

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Last Revised: 03/05/2014

After recordation, return to:McClure and Grigsby, P.A.3511 Bonita Bay Blvd., Suite 2Bonita Springs, Florida 34134

THIS DOCUMENT CONSTITUTES A SUBSTANTIAL REWORDING OFTHE DECLARATION AS PREVIOUSLY AMENDED. SEE PRIOR

DOCUMENTS FOR CHANGES TO PRESENT TEXT

AMENDED AND RESTATEDDECLARATION OF CONDOMINIUM OF

WATERSIDE I AT BAY BEACH, A CONDOMINIUM

This Amended and Restated Declaration of Condominium of Waterside I at Bay Beach is made by WATERSIDE I AT BAY BEACH CONDOMINIUM ASSOCIATION, INC., a Florida not-for-profit corporation (“Association”) as of this _____ day of _________________, 2014.

WHEREAS, Waterside at Bay Beach, Ltd., a Florida limited partnership, (“Developer”) as developer of the Waterside I at Bay Beach community recorded a Declaration of Condominium of Waterside I, a Condominium, on June 6, 1997, at Instrument No. 4181105 in the Public Records of Lee County, Florida (“Original Declaration”) and subsequent amendments were recorded thereafter (collectively, “Declaration”);

WHEREAS, Developer has assigned to the Association all of its right, title and interest in the Declaration; and

WHEREAS, the Association wishes to further amend and restate the Declaration in accordance with the terms and conditions set forth below.

NOW, THEREFORE, the Association hereby amends and restates the Declaration as follows:

1. THE LAND. The Developer owned title in fee simple to certain real property located in Lee County, Florida, as more particularly described in Exhibit “A.”

2. SUBMISSION STATEMENT. In the Original Declaration, the Developer submitted the land described in Exhibit "A" and all improvements erected thereon, all easements, rights and appurtenances belonging thereto, and all other property, real, personal or mixed, located thereon and intended for use in connection therewith, to the condominium form of ownership. No additional land is being submitted to condominium ownership under this Declaration.

3. NAME. The name by which this condominium is identified is Waterside I at Bay Beach, a Condominium, ("Condominium") and its present principal address is 4198 Bay Beach Lane, Fort Myers Beach, Florida 33931.

4. APPLICABILITY OF DECLARATION. The covenants and restrictions contained in this Declaration shall run with the land and be binding upon and inure to the benefit of all present and future Owners, Guests, Tenants and other Occupants of the Units. The acquisition of title to or lease of a Unit shall constitute an acceptance and ratification of all provisions of this Declaration and an agreement to be bound by its terms.

5. BAYSIDE MASTER DECLARATION. The Association is located within a larger residential development known as the Bayside Complex. All real property in the Bayside Complex is subject to the provisions of the Declaration of Covenants, Conditions and Restrictions for Bayside, recorded in Book 2831, Page 3711 of the Official Records of Lee County, Florida (“Bayside Master Declaration”). All real property in the Condominium is subject to the Bayside Master Declaration, which provides for the

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creation of the Bayside Master Association which is charged with the operation of the Bayside Complex. The Bayside Master Association assesses and bills each of the Owners within the Association as well as other neighborhood associations within the Bayside Complex.

6. BAY BEACH DECLARATION. The Bayside Complex is located within a larger residential development known as Bay Beach. All real property in Bay Beach is subject to the Declaration of Estero Bay Development Corporation Improvements, Restrictions, Conditions and Covenants, recorded in Book 1134 at Page 1445, in the Official Records of Lee County, Florida (“Bay Beach Declaration”) and is managed by the Estero Bay Improvement Association, Inc. (“EBIA”). The Association is a member of EBIA and is assessed for a share of its costs of operation. The assessments paid by the Association to EBIA are Common Expenses of this Condominium.

7. DEFINITIONS. The terms in this Declaration shall have the meanings stated in the Condominium Act or as set forth herein. Additionally, the following terms shall be defined as follows:

7.1 "ARC" or "Architectural Review Committee" means the architectural review committee which may be established by the Board of Directors pursuant to this Declaration to implement the architectural review criteria and guidelines described in Section 16.

7.2 “Assessments” mean a share of the funds required for the payment of Common Expenses which from time to time are assessed against the Units and Owners including, but not limited to, General Assessments and Special Assessments as permitted by the Condominium Act and as further described in Section 14 below.

7.3 "Association" means the Waterside I at Bay Beach Condominium Association, Inc., a Florida not-for-profit corporation, its successors and assigns.

7.4 “Bay Beach Declaration” means the document entitled Declaration of Estero Bay Development Corporation Improvements, Restrictions, Conditions and Covenants, as recorded in Book 1134, Page 1445 of the Official Records of Lee County, Florida and all recorded exhibits thereto, as they may be amended from time to time.

7.5 “Bayside Complex” means the land subject to the Bayside Master Declaration and all improvements located thereon.

7.6 “Bayside Master Association” means the Bayside Master Association, Inc., its successors and assigns.

7.7 “Bayside Master Declaration” means the Declaration of Covenants, Conditions and Restrictions for Bayside, as recorded in O.R. Book 2831, at Pages 3711 of the Public Records of Lee County, Florida, and all recorded exhibits to it, as amended from time to time.

7.8 “Board of Directors” or “Board” means the Association board of directors which is responsible for the administration of the Association. It shall also refer to a designee of the Board of Directors, such as a committee or the property manager, if and to the extent such delegation is set forth in this Declaration.

7.9 “Common Areas” means the real property and all improvements thereon owned by the Bayside Master Association for the use and benefit of the Owners in the Bayside Complex.

7.10 “Common Elements” means the portions of the Condominium Property not included in the Units, as more particularly described in Section 11 below.

7.11 “Common Expenses” means all expenses properly incurred by the Association in the performance of its duties, including expenses specified in the Condominium Act Section 718.115, Florida Statutes, as amended, and Section 14.1 below.

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7.12 “Common Surplus” means the amount of all receipts or revenues, including Assessments, rents, and profits, collected by the Association which exceeds the Common Expenses.

7.13 “Condominium” means Waterside I at Bayside, a Condominium, its successors and assigns.

7.14 “Condominium Act” means the Condominium Act at Chapter 718, Florida Statutes, as amended.

7.15 “Condominium Property” means the real property described in Exhibit “A” and any other real property hereafter owned or leased by the Association or which is dedicated by recorded instrument for the use and benefit of its Members.

7.16 “EBIA” means the Estero Bay Improvement Association, Inc., its successors and assigns.

7.17 “Governing Documents” means this Declaration and the Articles of Incorporation, Bylaws, Rules and Regulations of the Association, and all Board adopted and published policies of the Association, as amended from time to time.

7.18 “Guests” means, in its broadest sense, any person (other than an Owner or any person related to an Owner by blood, marriage, adoption or other family relationship) who is physically present in, or occupies a Unit on a temporary basis at the invitation of an Owner without the payment of consideration. The word “temporary” means not more than sixty (60) days in any calendar year.

7.19 "Lease" means the grant by an Owner of a temporary right of use of the Owner's Unit for rent or other valuable consideration; it also means the document which evidences such grant.

7.20 “Limited Common Elements” means the common elements that are reserved for the use of a certain Unit or Units, to the exclusion of all other Units.

7.21 “Members” and “Membership” mean the Owners who are members of the Association and the state of being such a member.

7.22 "Occupant" means any person who is physically present in a Unit at the invitation or with the consent of the Owner.

7.23 “Owner” means a record title owner, whether one or more persons or entities, of any Unit in the Association; provided, however, solely for the purpose of interpreting the restrictions on the use and occupancy of Units, in cases where, because of the form of Unit ownership, a Primary Occupant has been designated for a Unit, pursuant to Section 18.1 below, the word “Owner” refers to the Primary Occupant and not the record owner.

7.24 "Primary Occupant" shall mean the natural person approved for occupancy when title to the Unit is held in the name of a trustee, corporation, partnership or other entity which is not a natural person as further described in Section 18.1 below.

7.25 “Rules and Regulations” means those rules and regulations created and amended from time to time by the Board of Directors.

7.26 “Tenants” means any persons who are granted by an Owner a temporary right for the use of the Owner’s Unit for rent or other valuable consideration and all other persons occupying the Unit with the consent of such Tenants.

7.27 “Unit” means a part of the Condominium Property which is subject to exclusive ownership.

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7.28 “Voting Interest” means the arrangement established in the Governing Documents by which the Owners of each Unit collectively are entitled to one vote in Association matters. There are fifty-eight (58) Units, so the total number of Voting Interests in this Condominium is fifty-eight (58) votes.

8. SURVEY, PLOT PLAN, GRAPHIC DESCRIPTION AND IDENTITY OF UNITS

8.1 Survey and Architectural Exhibits. The Survey and Architectural Land Exhibits attached to the Original Declaration are made a part of this Declaration. Accordingly the Condominium, as represented in the Survey and Architectural Exhibits, has been certified by a Florida Registered Land Surveyor indicating statutory compliance with Section 718.104(4)(e), Florida Statutes.

8.2 Unit Identification. The Condominium consists of fifty-eight (58) Units as described in the Survey and Architectural Exhibit “B.” The exhibit graphically describes the improvements in which the Units are located and shows the Units and their identification numbers. Together with this Declaration, the exhibit identifies each Unit and the Common Elements, and their relative locations and approximate dimensions. In cases not specifically covered in Section 8.3, or in any case of ambiguity, the graphic depictions of the Unit boundaries set forth in Exhibit “B” shall control in determining the boundaries of a Unit.

8.3 Unit Boundaries. Each Unit shall include that part of the building that lies within the following boundaries:

A. Upper and Lower Boundaries. The upper and lower boundaries of the Unit shall be the following boundaries extended to their planar intersections with the parametrical boundaries.

(1) Upper Boundaries. The upper boundary shall be the unfinished lower surface of the ceiling of the Unit.

(2) Lower Boundaries. The horizontal plane of the unfinished upper surface of the concrete floor or stairway of the Unit.

B. Parametrical Boundaries. The parametrical boundaries of the Unit shall be the vertical planes of the unfinished interior surface of the concrete block walls bounding the Unit, extended to their planar intersections with each other and with the upper and lower boundaries.

C. Interior Walls . Interior partition walls within a Unit are part of the Unit.

D. Apertures. Where there are apertures in any boundary including, but not limited to, windows and doors, the Unit boundaries shall extend to the interior unfinished surfaces of such apertures, including all frameworks thereof.

E. Additional Items Included with Units. All of the following items are included with each Unit if such items are wholly or partially located within a Unit and designed and installed to serve only such Unit:

(1) All doors, door frames and hardware, windows, window frames and hardware, and window panes;

(2) All kitchen equipment and fixtures including, without limitation, ovens, microwaves, cooktops, refrigerators, freezers, sinks, compactors, beverage coolers, ranges, cabinets, dishwashers, exhaust fans and waste disposal Units;

(3) All bathroom and plumbing fixtures and equipment including, without limitation, sinks, tubs, whirlpool spas, showers, toilets, vanities, exhaust fans, and medicine cabinets;

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(4) All electrical and lighting fixtures including, without limitation, outlets, switches, dimmers, lamps, fans, bulbs, outlet boxes, switch boxes, telephone and cable outlets, circuit breakers, and circuit breaker panels;

(5) All clothes washers, clothes dryers, water heaters and heating and air conditioning equipment, which serve each Unit;

(6) All floor and wall covering including, without limitation, carpeting, ceramic tile, marble, wood flooring, wallpaper and paint; and

(7) All piping, ducts, wiring, cables and conduits of any kind or type serving only the particular Unit. All pipes, wiring, ducts or other utility equipment or installations that are physically within the above-described unit boundaries, but which serve all other unit or the common elements, are themselves Common Elements.

9. CONDOMINIUM UNITS; APPURTENANCES AND USE; COMMON AREAS.

9.1 Ownership of Unit . Each Unit, together with all appurtenances thereto, constitute for all purposes a separate parcel of real property which may be conveyed, transferred and encumbered only as provided in and subject to the Governing Documents and applicable law.

9.2 Shares of Common Ownership. The undivided share of ownership of the Common Elements and Common Surplus appurtenant to each Unit is a fraction of the whole, the numerator of which is the number of square feet of interior floor space in the Unit, and the denominator of which is the number ninety-four thousand five hundred twenty (94,520) which is the total interior square footage of all the Units combined. Each Unit’s share of liability for Common Expenses will be the same as its share of the ownership of the Common Elements appurtenant to each Unit. The square footage figures used for each unit type and the number of each type unit to be included in the Condominium is:

Types 1 & 2 (Channel Mark) 20 units 1440 sq. ft.Types 3 & 4 (Gulf Mist) 20 units 1630 sq. ft.Types 5 & 6 (Tide Water) 18 units 1840 sq. ft.

9.3 Appurtenances to Unit. The ownership of each Unit shall include, and shall pass as appurtenances thereto, whether or not separately described, all of the right, title and interest of an Owner in the Condominium Property which shall include, but not be limited to, the following:

A. An undivided share in the Common Elements and Common Surplus.

B. Membership and voting rights in the Association, which shall be acquired and exercised pursuant to the Governing Documents.

C. Membership and voting rights in the Bayside Master Association, with all the rights and obligations provided in the Bayside Master Governing Documents.

D. The exclusive right to use the Limited Common Elements reserved for the Unit or Units and the right to use the Common Elements and Common Areas.

E. An exclusive easement for the use of the airspace occupied by the Unit as it exists at any particular time and as the Unit may lawfully be altered or reconstructed from time to time. Any easement in airspace which is vacated automatically terminates.

F. Other appurtenances as may be provided in this Declaration.

9.4 Use and Possession. Each Owner is entitled to exclusive use and possession of his Unit subject only to the Association's right of access provided in the Governing Documents and the

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Condominium Act. He shall be entitled to use the Common Elements in accordance with the purposes for which they are intended, but such use may not hinder or encroach upon the lawful rights of other Owners or other persons having rights to use the Condominium Property. No Unit may be divided or any fractional portion sold or otherwise transferred. The use of the Units, Common Elements, and Limited Common Elements shall be governed by the Governing Documents.

9.5 Common Areas. Common Areas located in the Bayside Complex shall belong to the Bayside Master Association which has the responsibility for their maintenance and operation. Common Areas may include, but are not limited to, swimming pools, tennis courts and related facilities, and other facilities and property designated by its developer as Common Areas. There are no separate recreational facilities for the Association. Subject to the conditions contained in the Governing Documents, every Member has a right and privilege to use and enjoy, on a non-exclusive basis, the Common Areas. This right is appurtenant to, and shall pass with title to every Unit subject to the provisions of the Bayside Master Association governing documents.

10. EASEMENTS

10.1 Easements. Each of the following easements and easement rights are reserved throughout the Condominium Property and are covenants running with the land of the Association and, notwithstanding any of the other provisions of this Declaration, may not be revoked and shall survive the exclusion of any of the lands of the Condominium from the Association. None of the easements specified in this section may be encumbered by any leasehold or lien other than those on Units. Any lien encumbering these easements shall automatically be subordinate to the rights of the Owners and Association with respect to their use thereof.

A. Utilities. The Association, on its behalf and on behalf of all Owners, shall have the right to grant and relocate electric, gas, utility, drainage facility or other such easements, in any portion of the Condominium Property. It may also grant access easements or relocate any existing access easements in any portion of the Condominium Property. Such action shall be taken as the Association shall deem necessary or desirable for the proper operation and maintenance of the Condominium Property, for the general health and welfare of the Owners, and for the purpose of carrying out any provisions of the Governing Documents. Such grant of easements or relocation of existing easements may not prevent or unreasonably interfere with the reasonable use of the Units for their intended purposes. The Association shall also have the right to transfer title to utility-related equipment, facilities or material to any public utility company or governmental agency which is assuming the obligation to maintain such equipment, facilities or material. In connection with the foregoing, bills of sale may be granted for items of personal property owned or governed by the Association. Furthermore, the Association shall have the authority to take any other action to satisfy the requirements of any public utility company or governmental agency to which any such utility-related equipment, facilities or material are to be so transferred.

B. Minor Encroachments. In the event there shall be a minor encroachment by any Unit upon any of the Common Elements or upon any other Unit for any reason other than the intentional act of the Owner, or a minor encroachment of the Common Element upon any Unit, then an easement shall exist to the extent of that encroachment for so long as the encroachment shall exist.

C. Ingress and Egress. A non-exclusive easement in favor of each Owner, his Tenants, Guests, and all other Occupants shall exist for vehicular and pedestrian traffic over, through, and across sidewalks, streets, paths, walks, and other portions of the Common Elements as from time to time may be intended and designated for such purpose. However, nothing herein shall be construed to give or create in any person the right to park a vehicle upon any portion of the Condominium Property except in driveways or other approved areas.

D. Structural Supports. Each Unit shall have an easement for structural support over every other Unit and portion of the Common Elements supporting such Unit, and each portion of the Common

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Elements shall have an easement for support over all Units and all portions of the Common Elements supporting such portion of the Common Elements.

E. Stardial Easements . The lands of this Condominium are subject to certain easements, reserved rights and other provisions contained in the Special Warranty Deed from Stardial Investments Company to Waterside at Bay Beach, Ltd, dated December 19, 1995, and recorded in Official Records Book 2661, Page 3828 in the Public Records of Lee County, Florida.

10.2 Restraint Upon Separation and Partition. The undivided share in the Common Elements appurtenant to a Unit shall not be separated from the Unit and shall pass with the title to the Unit, whether or not separately described. No legal action for partition of the Common Elements shall be permitted.

11. COMMON ELEMENTS . The term “Common Elements” means all portions of the Condominium Property not included within the Units, and includes within its meaning the following:

A. Land and improvements outside the Units;

B. All Limited Common Elements;

C. Easements for furnishing utility services to Units and Common Elements; and

D. Any other parts of the Condominium Property designated as Common Elements in this Declaration or any other recorded document.

12. LIMITED COMMON ELEMENTS

12.1 Description of Limited Common Elements. Certain Common Elements have been designated as Limited Common Elements, reserved for the use of a particular Unit or Units, to the exclusion of other Units. The Limited Common Elements and the Units to which their use has been designated are as described below and as further identified on the Survey and Architectural Exhibits attached hereto as Exhibit “B.” The following Common Elements, without limitation, are hereby designated as Limited Common Elements:

A. Parking Spaces. Each Unit shall always have as an appurtenance the exclusive right to use one of the numbered parking spaces located under the building as shown in Exhibit “B.” The use rights to particular parking spaces may be exchanged between Units, or transferred to another Unit as described in Section 12.2 below.

B. Air Conditioning and Heating Equipment. All equipment, fixtures and installations located outside of a Unit, which furnish air conditioning or heating exclusively to that Unit, shall be Limited Common Elements, and shall be maintained, repaired and replaced solely at the expense of the Owner of the Unit.

C. Terraces. The usable airspace above the concrete slab of the terrace that is attached to and exclusively serves each Unit is Limited Common Element. The maintenance, repair or replacement and insurance of floor covering and screen enclosure shall be the responsibility of the Owner.

D. Storage Areas. Two (2) storage areas, one on the ground level and one on the floor of the building on which the Unit is located, are assigned to each Unit as Limited Common Elements. The storage areas each bear the number of the Unit to which it is assigned. The use rights to particular storage areas may be exchanged between Units or transferred to another Unit as described in 12.2 below. The storage areas, including those shown on the ground floor, are shown in Exhibit “B” with each bearing the number of the Unit to which it is assigned.

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E. Mechanical Closets. Each Unit is served exclusively by a mechanical closet located on the same floor as the Unit, accessible only from the elevator lobby. This closet is to remain unlocked at all times. Use of this closet as a storage area violates local fire codes, and is prohibited.

F. Others. Any part of the Common Elements that is connected to or exclusively serves a Unit, or Units to the exclusion of other Units and is specifically required in Section 15 of this Declaration to be maintained, repaired or replaced by or at the expense of the Owner, shall be deemed a Limited Common Element appurtenant to that Unit, whether specifically described above or not.

12.2 Exclusive Use. The exclusive use of a Limited Common Element is appurtenant to the Unit or Units to which it is designated or assigned. The right to such use shall pass with the Unit on transfer, whether or not separately described, and cannot be separated from it, except that the use rights of particular parking spaces or storage areas may be exchanged between Units or transferred to another Unit, as follows:

A. If Owners desire to exchange such use rights, they shall submit a written request to the Board of Directors. If the Board approves the exchange, such Owners and the Association shall execute a Certificate of Transfer which shall include the recording data identifying this Declaration, and be executed by the Association and such Owners in recordable form.

B. The transfer of use rights shall be complete and effective when the Certificate of Transfer is recorded in the Public Records of Lee County, Florida. The costs of preparing and recording the Certificate shall be borne by the Owners desiring the exchange or transfer.

C. Under no circumstances shall any Unit be without one (1) assigned covered parking space.

13. ASSOCIATION . The operation and management of the Association shall be by the Association which shall perform its functions pursuant to the following: this Declaration, the Articles of Incorporation, Bylaws, and the Rules and Regulations of the Association, as amended, and the published policies of the Board of Directors, as amended.

13.1 Delegation of Operation and Management . The Association may contract for the operation and management of the Association and delegate to its general manager or other designee the authority to assist in the management and operation including, without limitation, notification and conduct of meetings, collection of Assessments, preparation of records, enforcement of the Governing Documents, and maintenance, repair and replacement of the Common Elements. The Board of Directors may delegate to its general manager and staff or other designee such other rights and duties as it deems appropriate from time to time; provided, that such rights and duties may be withdrawn without prior notice at the discretion of the Board. Any management contract entered into by the Association shall be in compliance with the provisions of Florida law.

13.2 Membership. The membership of the Association shall be comprised of Owners of the Units, as further provided in the Governing Documents.

13.3 Acts of the Association. Unless the approval or affirmative vote of the Owners is specifically made necessary by some provision of the Governing Documents or Florida law, all approvals or actions permitted or required to be given or taken by the Association may be given or taken by its Board of Directors or its designee, without a vote of the Owners. The Board of Directors has a fiduciary relationship to the Owners. An Owner does not have the authority to act for the Association by reason of being an Owner.

13.4 Powers and Duties. Unless otherwise provided under Florida law, the powers and duties of the Association, as defined in the Condominium Act, shall generally include those set forth in the Governing Documents and all state and federal law.

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13.5 Official Records. The Association shall maintain its Official Records as required by law and shall, unless otherwise provided in the Condominium Act, be subject to the following terms and conditions:

A. Maintenance of Official Records. The Official Records of the Association must be maintained within the state for at least seven (7) years and shall be made available to an Owner or his designated representative in Lee County, Florida within five (5) working days after receipt of written request to the Association from the Owner. This provision may be complied with by having a copy of the Official Records available for inspection or copying on the Condominium Property, or the Association may offer the option of making the records available to an Owner either electronically via the Internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request. The Association is not responsible for the use or misuse of the information provided to an Owner or authorized representative pursuant to the compliance requirements of this provision or the Condominium Act, unless the Association has an affirmative duty not to disclose such information pursuant thereto.

B. Inspection of Official Records. The Official Records are open to inspection by any Owner or his authorized representative at all reasonable times. The right to inspect the records includes the right to make or obtain copies, at the reasonable expense, if any, of the Owner. The Association may adopt Rules regarding the frequency, time, location, notice and manner of record inspections and copying. The Association shall maintain an adequate number of copies of the Declaration, Articles of Incorporation, Bylaws, and Rules and Regulations and all amendments thereto, as well as the Question and Answer Sheet provided for in the Condominium Act, and year-end financial information required in Section 718.301, Florida Statutes, as amended, on the Condominium Property to ensure their availability to Owners and prospective transferees. The Association may, in its reasonable discretion, charge to an Owner any special costs for producing and furnishing documents including, without limitation, accounting and legal expenses, which may be necessary to produce or furnish such documents.

C. Records Not Accessible. Notwithstanding the provisions of this Section, the following are not to be accessible to Owners:

(1) Any record protected by the lawyer-client privilege as described in Section 90.502, Florida Statutes; and any record protected by the work-product privilege, including any record prepared by the Association attorney or prepared at the attorney’s express direction; which reflects a mental impression, conclusion, litigation strategy, or legal theory of the attorney or the Association, and which was prepared exclusively for civil or criminal litigation or for adversarial administrative proceedings, or which was prepared in anticipation of imminent civil or criminal litigation or imminent adversarial administrative proceedings until the conclusion of the litigation or adversarial administrative proceedings.

(2) Information obtained by the Association in connection with the approval of the lease, sale, or other transfer of a Unit.

(3) Personnel records of the Association including, but not limited to, discipline, payroll, health and insurance records. For purposes of this subparagraph, the term “personnel records” does not include written employment agreements with an Association employee or management company, or budgetary or financial records that indicate the compensation paid to an association employee.

(4) Medical records of Owners.

(5) Social security numbers, driver’s license numbers, credit card numbers, email addresses, telephone numbers, facsimile numbers, emergency contact information, any addresses of an Owner other than provided to fulfill the Association’s notice requirements, and other personal identifying information of any person, excluding the person’s name, Unit designation, mailing

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address, property address, and any address, e-mail address or facsimile number provided to the Association to fulfill the Association’s notice requirements. Notwithstanding the restrictions on this subparagraph, the Association may print and distribute to Owners a directory containing the name, Unit address, and telephone number of each Owner. However, an Owner may exclude his or her telephone number from the directory by so requesting in writing to the Association. The Association is not liable for the inadvertent disclosure of information that is protected under this subparagraph if the information is included in an Official Record of the Association and is voluntarily provided by an Owner and not requested by the Association.

(6) Any electronic security measure that is used by the Association to safeguard data, including passwords.

(7) The software and operating system used by the Association which allows manipulation of data, even if the Owner owns a copy of the same software used by the Association. The data is part of the Official Records of the Association.

(8) Such other records as may be deemed inaccessible under the Condominium Act.

13.6 Member Approval in Advance of Certain Litigation . Notwithstanding the other provisions of the Governing Documents, the Association must obtain the prior approval of at least two-thirds (2/3) of the Voting Interests of the Association before paying or incurring any obligation to pay legal fees to any person engaged by the Association for the purpose of commencing any lawsuit, other than for the following purposes:

(1) the collection of other charges which Members are obligated to pay;

(2) the enforcement of the Governing Documents;

(3) in an emergency, when waiting to obtain the approval of the Members creates a substantial risk of irreparable injury to the Association or its Members;

(4) challenging appraised values of Condominium Property for property tax purposes; or

(5) filing a compulsory counterclaim.

13.7 Limitation on Liability. Notwithstanding its duty to maintain and repair the Common Elements and the Condominium Property, the Association shall not be liable to Owners for injury or damage, other than the cost of maintenance and repair, caused by any latent condition of the Condominium Property to be maintained and repaired by the Association, or by the negligence or willful misconduct of an Owner, Guest, Tenant or other Occupant of a Unit.

13.8 Purchase of Units . The Association has the power to purchase Units in the Condominium and to acquire, hold, lease, mortgage and convey them. Such power to be exercised by the Board of Directors.

13.9 Acquisition of Property . The Association has the power to acquire property, both real and personal. The power to acquire personal property shall be exercised by the Board of Directors. Except as provided in Section 13.8 above, the power to acquire ownership interests in real property may be exercised by the Board of Directors, but only after approval by at least a majority of the Voting Interests of the Association.

13.10 Disposition of Property . Any property owned by the Association, whether real, personal or mixed, may be mortgaged, sold, or otherwise encumbered or disposed of by the affirmative vote of the Board of Directors without need for authorization by the Owners.

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13.11 Roster . The Association shall maintain a current roster of names and mailing addresses of Owners; provided, however, upon the written request of an Owner, such information may be limited to the name and Unit address of such Owner. A copy of the roster shall be provided to any member upon request. The Association may charge a reasonable fee for the preparation and distribution of a roster

14. ASSESSMENTS AND LIENS . To the extent permitted under the Condominium Act, the Association has the power to make and collect Assessments against each Unit and any Owner in order to provide the necessary funds for proper management of the Condominium Property and operation of the Association. The Association has the power to levy and collect General Assessments for each Unit’s share of the Common Expenses as set forth in the annual budget, Special Assessments for non-recurring or unbudgeted Common Expenses and, to the extent permitted by law, special charges against an Owner for any amounts, other than for Common Expenses, which are properly chargeable against such Owner under the Governing Documents. General Assessments shall be assessed on an annual basis to coincide with the Association’s fiscal year and shall be paid in quarterly installments on the first day of each calendar quarter in advance. Special Assessments shall be levied and payable as determined by the Board of Directors and in accordance with the Condominium Act and this Declaration. Assessments shall be enforced as provided by law and as follows:

14.1 Common Expenses. Common Expenses include all expenses of the operation, maintenance, repair, replacement and protection of the Common Elements and all Condominium Property and any other expense properly incurred by the Association, including any amounts budgeted for the purpose of funding reserve accounts, and including assessments levied by EBIA. If the Board of Directors contracts for basic cable/satellite television programming service and/or internet service in bulk for the entire Condominium, the costs of such service shall be a Common Expense to the extent permitted by law. The cost of pest control services for each Unit may, at the discretion of the Board, be a Common Expense. Assessments levied by the Bayside Master Association against individual Units and Owners are not Common Expenses as described herein.

14.2 Share of Common Expense. Except as otherwise provided in Section 14.4 below, each Owner shall be liable for its proportional share of the Common Expenses as provided herein, and shall share in the Common Surplus in the same proportion. Such share is equal to the Owner's share in the Common Elements. Such right shall not vest or create in any Owner the right to withdraw or receive distribution of his share of the Common Surplus, except as otherwise provided herein.

14.3 Ownership of Assessments; Common Surplus . Assessments collected by or on behalf of the Association become the property of the Association. No Owner has the right to claim, assign or transfer any interest therein except as an appurtenance to his Unit. No Owner has the right to withdraw or receive distribution of his share of any Common Surplus except as provided in the Governing Documents or applicable law.

14.4 Liability for Assessments . Except as otherwise provided in the Condominium Act, the Owner of each Unit, regardless of how title was acquired, is liable for all Assessments and installments thereon coming due while he is the Owner. Multiple Owners are jointly and severally liable. Except as provided in Section 14.12 below, whenever title to a Unit is transferred for any reason, the grantee is jointly and severally liable with the grantor for all unpaid Assessments against the grantor without prejudice to any right the grantee may have to recover from the grantor any amounts paid by the grantee.

14.5 No Waiver or Excuse from Payment . The liability for Assessments may not be avoided by waiver of the use or enjoyment of any Common Elements or by abandonment of the Unit for which the Assessments are made or by interruption in the availability of the Unit or the Common Elements for any reason whatsoever. No Owner may be excused from payment of his share of the Common Expenses unless all Owners are likewise proportionately excused from payment, except as provided below as to first mortgagees; provided, however, nothing in this Section is intended to prevent the Association from compromising or settling a claim for past due assessments for less than full payment if permitted by law and the Board determines that such action is in the best interests of the Association.

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14.6 Failure To Pay: Interest And Late Fees . All assessment installments not paid within ten (10) days from date due shall bear interest at the highest rate allowed by law (currently 18% per annum) until paid. In addition, the Association may charge an administrative late fee, not to exceed the greater of $25.00 or 5% of each delinquent installment or such other amount authorized under Florida law. All payments on account shall be applied as provided in the Governing Documents. All payments on account by an Owner shall be applied first to interest, then to late payment fees, attorney’s fees and costs and finally to unpaid Assessments, in such manner as determined by law. Payment by check is not deemed received until the check has cleared.

14.7 Acceleration. If any Assessment becomes more than thirty (30) days past due and a Claim of Lien is recorded, the Association shall have the right to accelerate the due date of the entire unpaid balance of the Assessment (general and special) for that fiscal year. The due date for all accelerated amounts shall be the date the Claim of Lien was recorded in the public records. The Association’s Claim of Lien shall secure payment of the entire accelerated obligation, together with interest on the entire balance, attorney’s fees and costs as provided by law. The right to accelerate shall be exercised by sending to the delinquent Owner a notice of the exercise, which notice shall be sent by certified mail to the Owner’s last known address, and shall be deemed given upon mailing of the notice, postpaid. The notice may be given as part of the notice of intent to foreclose, as required by Section 718.116 of the Condominium Act, as amended, or may be sent separately.

14.8 Liens . The Association has a lien on each Unit securing payment of any unpaid Assessments, including interest, late fees, attorney's fees and costs incurred by the Association incident to the collection of the Assessment or enforcement of the lien. The lien is perfected upon recording the Claim of Lien in the Public Records of Lee County, Florida. The term “incident to collection of the assessment and enforcement of the lien” shall be construed in its broadest sense to mean all services of the Association’s attorney which is related, directly or indirectly, to the collection of a delinquent assessment including, without limitation, the monitoring of and participation in any mortgage or other foreclosures involving the Unit, the negotiation of any settlement of the delinquent assessment, and the monitoring of and participation in any bankruptcy proceeding (including the use of bankruptcy counsel) of a delinquent Owner. It is the intent and goal of this provision to render the Association 100% whole as to all expenses, costs and fees in connection with collection of delinquent assessment accounts. The Claim of Lien secures payment of all assessments which are due until the entry of a judgment of foreclosure. A Claim of Lien must be signed and acknowledged by an officer, agent or attorney of the Association. Upon full payment, the person making the payment is entitled to a satisfaction of the lien as provided in the Condominium Act.

14.9 Priority of Lien . A Claim of Lien for unpaid assessments shall be effective as of the date of recording of the Original Declaration. The Claim of Lien is limited by the rights of an institutional first mortgagee as set forth in Section 14.12 below. Any Lease of a Unit shall be subordinate and inferior to any Claim of Lien of the Association, regardless of when the Lease was executed.

14.10 Foreclosure . The Association may bring an action in its name to foreclose a lien for unpaid assessments in the manner provided in the Condominium Act and may alternatively bring an action to recover a money judgment for the unpaid assessments without waiving any Claim of Lien. The Association is entitled to recover its reasonable attorney's fees incurred in either a lien foreclosure action or an action to recover a money judgment for unpaid assessments.

14.11 Transfer of Ownership of Foreclosed Unit . If a foreclosure action is brought against an Owner and the interest of the Owner in the Unit is sold, the Owner's Membership shall be cancelled and Membership shall be issued to the purchaser upon issuance of title.

14.12 Mortgage Foreclosure . Except as otherwise provided in the Condominium Act, a first mortgagee who acquires title to the Unit by foreclosure or by deed in lieu of foreclosure is liable for the unpaid Assessments that became due prior to the first mortgagee’s acquisition of title. However, unless otherwise provided in the Condominium Act, in no event shall the mortgagee be liable for more than twelve (12) months of the Unit’s unpaid Assessments accrued or 1 percent of the original mortgage debt,

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whichever is less, including late fees, interest, attorney’s fees and costs, before the acquisition of the title to the Unit by the mortgagee. The unpaid share of Assessments is a Common Expense collectible from all of the Owners, including such acquirer and his successors and assigns; provided, however, the foregoing shall not limit the right of the Association to initiate legal action for damages against the former Owner for the amount of and deficiency including late fees, interest, attorney’s fees and costs.

14.13 Certificate as to Assessments . Within fifteen (15) days after request by an Owner or Unit mortgagee, the Association shall provide a certificate stating all Assessments and other monies owed to the Association by the Owner with respect to the Unit. Any person other than the Owner who relies upon such certificate shall be protected thereby.

15. MAINTENANCE, REPAIR AND REPLACEMENT; LIMITATION UPON ALTERATION AND IMPROVEMENT. Responsibility for the maintenance, repair and replacement of the Condominium Property and restrictions on its alteration and improvements shall be as follows:

15.1 Units.

A. By the Owner . Each Owner is responsible, at his expense, for all maintenance, repairs, and replacements of his own Unit, which service only his Unit; provided, however, that any insurance proceeds payable to the Association with respect to loss or damage to the fixtures within the Unit which are covered by the Association's insurance provided for in the Governing Documents, and which loss would otherwise be borne by the Owner, shall be paid to such Owner, less any deductible required by the insurance policy. The Owner’s responsibilities include, without limitation, maintenance, repair and replacement of the following:

(1) Storm shutters and screens;

(2) All doors within and providing access to the Unit, or to Limited Common Elements serving only that Unit, and all related hardware and framing;

(3) The electrical and mechanical fixtures and equipment and plumbing fixtures, switches, valves, drains and outlets (including connections) located within or without of the Unit and serving only the Unit, except those (if any) that are expressly made the Association’s responsibility elsewhere in this Section 15;

(4) All circuit breaker panels located inside the Unit or serving only the Unit, and all electrical wiring in the Unit from the panel;

(5) Appliances, water heaters, smoke alarms and vent fans;

(6) All air conditioning and heating equipment, wiring, coolant lines, thermostats, ducts and related installations wherever located, that serve the Unit exclusively, and are accessible by the Owner;

(7) Carpeting and other floor coverings;

(8) Wall paint, wallpaper and other wall coverings;

(9) Ceiling paint, tiles and other ceiling coverings;

(10) Shower pans;

(11) The main water supply shut-off valve for the Unit; and

(12) All interior partition walls that are not part of the boundaries of the Unit;

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B. Other Owner Responsibilities:

(1) Flooring. All Units above the ground floor must have the floors covered with wall-to-wall carpeting installed over high quality padding, except carpeting is not mandatory in kitchens, bathrooms, foyers or laundry rooms. An Owner who installs any hard-surface floor covering (e.g. marble, slate ceramic tile, parquet, hardwood, etc.) anywhere in the Unit must install it over a sound absorbent underlayment of such kind and quality as to equal or exceed the sound transmission inhibiting properties of a .25 inch cork underlayment, and must notify the Association in writing prior to making the installation so that the Association can observe or monitor the installation as it occurs. If an installation is made in violation of this restriction, the Association may, in addition to any other remedies it may have, require the Owner to cover the hard-surface flooring with carpet, or require the removal of the flooring altogether, at the expense of the offending Owner. No carpeting of any kind may ever be installed on, or affixed to, concrete surfaces exposed to the elements.

(2) Terraces. Where a Limited Common Element consists of a terrace, the Owner who has the right of exclusive use of the terrace is responsible for the day-to-day cleaning and care of the walls, steps, floor and ceiling bounding the area, if any; all fixed glass and sliding glass doors and screens, if any; and all electrical outlets and light fixtures, if any, and the replacement of light bulbs. No terrace may be carpeted, covered, or enclosed in any way without the prior written approval of the Board of Directors. The maintenance, repair, replacement and insurance of such approved carpeting, covering or enclosure is the responsibility of the Owner. Maintenance, repair and replacement of screening and sliding glass doors and all hurricane shutters is the responsibility of the Owner, unless the Members of the Association have voted to assume responsibility for all hurricane shutters as provided in the Condominium Act. As set forth in Subsection C below, the Association is responsible for the maintenance, repair and replacement, and painting of all exterior walls and structural components of the building, the concrete slabs and maintenance of all landscaping in the courtyard.

(3) Fixtures, Appliances, Windows and Window Coverings . Each Member shall maintain his Unit and all fixtures and appliances located therein in good condition and repair at all times. No glass, screen, curtain, blind, shutters or awning may be installed on any porch, lanai, balcony or terrace without prior written approval by the Board of Directors. Each Owner is prohibited from painting or otherwise decorating or changing the appearance of any portion of the exterior of his Unit or the building except with prior written approval of the Board of Directors. All curtains, blinds, shades or other window coverings in the Unit shall be of such material, construction and installation that the only color visible from outside the Unit is white or a nearly white neutral color, or such other color as the Board of Directors may determine from time to time.

(4) Interior Decorating . Each Owner is responsible for all decorating within his own Unit, including painting, wallpapering, paneling, floor covering, draperies, window shades, curtains, lamps and other light fixtures, and other furnishings and interior decorating.

(5) Modifications and Additions . If an Owner makes any modifications, or additions to his Unit, including without limitation, the installation of any floor covering on any concrete surface exposed to the elements, that Owner, and his successors in title, are financially responsible for insurance, maintenance, repair and replacement of the modifications, installations or additions, as well as the costs of repairing any damage to the Common Elements or other Units resulting from the existence of such modifications, installations or additions, and the costs of removing and replacing or reinstalling such modifications if their removal by the Association becomes necessary in order to maintain, repair, replace, or protect other parts of the Condominium Property.

C. By the Association. The Association is responsible for the protection, maintenance, repair, insurance and replacement of the Common Elements and Association Property (other than certain

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Limited Common Elements specifically described elsewhere herein as the responsibility of the Owner). The cost of carrying out the Association’s duties hereunder is a Common Expense, and those responsibilities include, without limitation:

(1) Window frames and glass, window caulking and gasket seals;

(2) Electrical wiring up to the circuit breaker panel in each Unit;

(3) Potable water lines up to the individual Unit cut-off valve inside the Unit;

(4) Cable television lines up to the wall outlets in the Units;

(5) Air conditioning condensation drain lines up to the point where the individual Unit drain line cuts off;

(6) Sewer lines up to the point where the sewer lines enter the individual Units;

(7) All installations, fixtures and equipment located within one Unit but serving another Unit, or located outside the Unit, for the furnishing of utilities to more than one Unit or the Common Elements;

(8) The exterior surfaces of all doors to the Units or Limited Common Elements serving the Units;

(9) All exterior building walls, including painting, waterproofing and caulking; and

(10) All wiring, plumbing, and other electric, telecommunications and mechanical equipment and installations that serve only one Unit, and would be the Owner’s responsibility under Section 15.1 above, but are located in places where the Owner has no legal right of access, such as being imbedded in a concrete slab, in another Unit, or accessible only through another Unit. The Association’s responsibility does not include interior wall switches or receptacles, plumbing fixtures, cabinets or other electrical, plumbing or mechanical installations located within a Unit and serving only that Unit. Except as otherwise provided in Section 15.1 B (5) above, damage caused to a Unit or Limited Common Elements by work performed or ordered to be performed by the Association is to by promptly repaired by and at the expense of the Association, as needed to restore the property as nearly as practical to its condition before the damage, and the cost shall be a Common Expense. The Association shall not, however, be responsible for the costs of removal, replacement or repair of any damage to any alteration or addition to the Common Elements made by an Owner or his predecessor in title.

15.2 Maintenance and Alteration of Common Elements.

A. By Association. The maintenance, repair and replacement of the Common Elements are the responsibility of the Association and is a Common Expense. Except as otherwise provided herein, there shall be no material alteration of, nor substantial additions to, the Common Elements without prior approval by the Owners of not less than a majority of the Voting Interests of the Membership present and voting (in person or by proxy) or by written agreement of a majority of the Voting Interests of the Membership. Notwithstanding the foregoing, however, Owner consent shall not be required for the following: (i) any alterations or additions to the Common Elements which do not exceed $25,000, in the aggregate, in any calendar year; (ii) work which is reasonably necessary to protect, maintain, repair or replace the Common Elements; and (iii) any alterations or additions which are not considered under Florida law to be material alterations or substantial additions.

B. By Owners. No Owner may alter the Common Elements without the prior written consent of the Board of Directors pursuant to the approval requirements of Section 16. The Association shall have the right to compel an Owner who does not secure such prior approval to remove, at the

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Owner’s expense, any material or substantial alteration and to restore the affected area to its previous condition. If the Owner refuses to comply with the Association’s order in such a case, the Association is empowered to cause the work to be done and to collect the cost from the Owner. Prior approval by the Association shall not be construed as acceptance by the Association of any liability for the costs, maintenance, or insurance of such alteration nor as an assumption by the Association of any liability for injuries, defective construction, or damages caused by or resulting from the making of the alteration.

15.3 Enforcement of Maintenance . If an Owner fails to maintain his Unit or its appurtenant Limited Common Elements as required above, the Association shall have the right to institute legal proceedings to enforce compliance, or may take any and all other steps necessary to remedy such violation. In addition, the Association may, but shall not be obligated to, do all necessary maintenance, repairs and replacements to a Unit if the Owner or Owners fail to do so after reasonable notice. For this purpose, the Association has the irrevocable right of access to each Unit during reasonable hours (except in case of emergency). All expenses so incurred by the Association shall be charged to the Owner, together with reasonable attorney’s fees and other expenses of enforcement. If and to the fullest extent permitted under Florida law, the Association may treat such expense as a lien under Section 14.8 above. The exercise of the Association's access rights shall be accomplished with due respect for the Owner's rights to privacy and freedom from unreasonable annoyance, as well as with appropriate precautions to protect the Owner's property. The Association may retain a pass-key or duplicate key, if it elects to do so, to all Units at the on-site office of the Association. Such keys shall be kept in a secured location with limited access. No Owner shall alter any lock, nor install a new lock which prevents access when the Unit is unoccupied, without notifying the Board of Directors in writing and providing the Association with a key. If the Association is not given a key, the Owner shall pay all costs incurred by the Association in gaining entrance to the Unit, as well as damage to the Unit caused by gaining entrance thereto, and all damage resulting from delay in gaining entrance to the Unit caused by the non-availability of a key

15.4 Negligence; Damage Caused by Condition within Unit . The Owner of each Unit is liable for the expenses of any maintenance, repair or replacement of Common Elements, Condominium Property, and other Units, and any personal property maintained thereon, that is made necessary by the negligent or willful acts of the Owner, his Guests, Tenants or other Occupants of a Unit. Each Owner has a duty to maintain his Unit, any Limited Common Elements appurtenant to the Unit, in such a manner as to prevent foreseeable and reasonably preventable damage to other Units, the Common Elements or the property of other Owners and Occupants. If any condition, defect or malfunction, resulting from the Owner’s failure to perform this duty causes damage to other Units, the Common Elements, Condominium Property or property within other Units, the Owner of the offending Unit shall be liable to the Association and/or person or entity whose property is damaged for all costs of repair or replacement not paid by insurance. If one or more of the Units involved is not occupied at the time the damage is discovered, the Association may enter the Unit without prior notice to the Owner and take reasonable action to mitigate damage or prevent its spread. The Association may, but is not obligated to, repair the damage with the prior consent of the Owner.

15.5 Association’s Access to Units . The Association has an irrevocable right of access to the Units for the purposes of protecting, maintaining, repairing and replacing the Common Elements or portions of a Unit to be maintained by the Association under this Declaration, and as necessary to prevent damage to one or more Units. The Association’s right of access includes, without limitation, entry for purposes of pest control and preventive maintenance of safety equipment, as well as the right, but not the duty, to enter under circumstances where the health or safety of residents may be endangered. The exercise of the Association’s rights of access to the Unit shall be accomplished with due respect for the rights of occupants to privacy and freedom from unreasonable annoyance, as well as with appropriate precautions to protect the personal property within the Unit. The Association may require a pass-key to all Units. If it does, no Owner shall alter any lock, nor install a new lock, which prevents access when the Unit is unoccupied, unless the Owner provides a key to the Association. If the Association is not given a key, the Owner shall pay all costs incurred by the Association in gaining entrance to the Unit, as well as all damage to his Unit caused by gaining entrance thereto, and all damage resulting from delay in gaining entrance to his Unit caused by the non-availability of a key.

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15.6 Sprinkler System. The maintenance, repair and replacement of the sprinkler system is the responsibility of the Association. No Owner may alter or remove sprinkler heads. The cost of the sprinkler system is a Common Expense.

15.7 Pest Control . The Association may supply pest control services for the inside of each Unit, with the cost being part of the Common Expenses. Any Owner has the option to decline service unless the Association determines that service is necessary for the protection of the Condominium building as a whole, in which case the Owner must either permit the Association’s pest control company to enter the Unit, or must employ a licensed pest control company to perform the required pest control services and furnish written evidence to the Association that such treatment has occurred. The cost of pest control service, if provided by the Association, is a Common Expense, so the election of an Owner not to use the service shall not reduce the Owner’s assessments.

15.8 Cable/Satellite Television and/or Internet Service. The Association may contract for basic cable or satellite television programming service and/or internet service in bulk for the entire Condominium. The cost of this service, if provided by the Association, is a Common Expense, so the election of an Owner not to use the service shall not reduce the Owner’s assessments.

15.9 Terraces . The Board of Directors may, but is not obligated to, adopt a basic approved plan for screening and/or glassing-in of terraces. An Owner may screen or enclose the terrace serving his Unit in strict conformity to any such approved plans without specific consent from the Board of Directors. If an Owner elects to enclose the terrace, he or she shall notify the Association and the installation of such enclosure shall include the installation of sprinklers in accordance with applicable building codes.

15.10 Hurricane Shutters . The Board of Directors shall adopt and approve one or more models, styles and colors of hurricane shutters as standard hurricane shutters for use in the Condominium. No hurricane shutters except the models, colors and styles originally installed by the developer, or those meeting specifications adopted by the Board of Directors, shall be used in or upon the Condominium.

15.11 Intrusion into Floors and Ceilings. The concrete slabs between each floor contain high tension cables and are Common Element property. In addition to the requirements of Section 15.12, any Owner seeking Board approval (pursuant to Section 16) for any alteration, addition or improvement which may necessitate intrusion into the floor or ceiling of their Unit, shall be required to provide certification by an engineer or other qualified professional that such alteration, addition or improvement will not damage the high tension cables therein located. The Board, at is complete and total discretion, may accept such certification and/or request additional documentation before granting its approval.

15.12 Use of Licensed and Insured Contractors: Construction Lien Law. Whenever an Owner contracts for maintenance, repair, replacement, alteration, addition or improvement of any portion of a Unit, whether with or without Association approval, such Owner shall be deemed to have warranted to the Association and it Members that his contractor(s) are properly licensed and fully insured and that the Owner will be financially responsible for any resulting damage to persons or property not paid by the contractor’s insurance. The Owner also agrees to comply with the requirements of Chapter 713, Florida Statutes, as amended, and to indemnify the Association and its Members from any construction liens which may attach to Common Elements and which are attributable to work performed by or for the benefit of the Owner.

15.13 Repairs to Units by Association; Written Notice. The Association may, without legal obligation and when deemed necessary, in the opinion of the Board of Directors, to preserve the beauty, quality, and value of the Association and/or the safety of its residents, provide repairs to any Unit that are otherwise the responsibility of the Owner and which such Owner has failed to repair after thirty (30) days written notice to the Owner; provided, however, if the repairs are needed as a result of an emergency, the Association shall only be required to give reasonable notice to the Owner under the circumstances by whatever means appropriate. The notice, if not an emergency, shall be sent by certified mail and shall set forth the nature of the repairs, estimated cost (if known), and the Association’s intention to enter the Unit

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to make such repairs. All Owners hereby grant to the Association authority to enter their Unit, with or without permission, for such purpose and holds the Association, its Board of Directors, officers, managers, employees, and contractors harmless from all liability for such entry and repairs. The Association shall act with reasonable diligence and care in entering the Unit and making the repairs. After such repairs are made, the Association shall send the Owner an itemized statement of cost for such repairs and demand payment therefore within thirty (30) days. If such payment is not made within the 30-day period, the Association may, in addition to all remedies available to it under this Declaration, bring legal action against the Owner for monetary damages, including reasonable attorney’s fees.

15.14 Assignment of Insurance Rights. In the event the Association exercises the rights afforded to it in this Section, the Owner of the subject Unit shall be deemed to have assigned to the Association any right the Owner may have to insurance proceeds that may be available to the Owner arising from the damage or destruction of the improvements.

15.15 Appliance Maintenance Contracts . If there shall become available to the Association a program of contract maintenance for kitchen appliances or water heaters within Units and/or air-conditioning compressors and/or air handlers serving individual Units or other similar items which the Association determines is to the benefit of Owners to consider, upon agreement by a majority of the Voting Interests of the Association present, in person or by proxy and voting, at a meeting called for the purpose, or upon agreement by a majority of the Voting Interests in writing, the Association may enter into such contractual undertakings. The costs of such contractual undertakings to the Association shall be Common Expenses. All maintenance, repairs and replacements not covered by the contracts shall be the responsibility of the Owner.

16. ARCHITECTURAL CONTROL; ARCHITECTURAL REVIEW AND DESIGN GUIDELINES.

16.1 General Approval . No alteration, addition or deletion of any structure shall be made upon the Common Elements or to the exterior of any Unit unless and until the plans and specifications are reviewed and approved by the Board of Directors. All plans and specifications shall be evaluated as to harmony of external design and location in relation to surrounding structures, topography and architectural design for the Association.

16.2 Architectural Review and Design Guidelines . The Board of Directors or its designee may

adopt architectural review and design guidelines for such purpose.

17. USE RESTRICTIONS . The following use restrictions shall be binding upon all Owners, their Guests, Tenants and Occupants of a Unit. Violation of these restrictions may subject the violator to any and all remedies available to the Association pursuant to its Governing Documents and Florida law. Violations may be remedied through the Association by the imposition of fines, suspension of use rights, injunctive relief and any other legal and equitable means, and the Association shall be entitled to recover its reasonable attorney’s fees and costs in such actions. The Board of Directors may, from time to time, amend or repeal these restrictions and adopt Rules and Regulations as appropriate concerning such restrictions. Any waivers, consents or approvals given under these restrictions by the Board of Directors shall be revocable at any time and shall not be considered as a waiver, consent or approval for any other purpose other than that which is identified at the time of giving of such waiver, consent or approval.

17.1 Use of Units . The Units may be used for single-family residential living and for no other purpose. No trade, business, profession or other type of commercial activity may be conducted on any part thereof; provided, however, that any business which, in the reasonable discretion of the Board of Directors, does not result in excessive vehicle or pedestrian traffic and does not cause an annoyance or nuisance to other Owners, Guests, Tenants or Occupants, may be permitted. The term “single-family” shall mean anyone of the following: (i) one natural person; (ii) two or more persons, each of whom are related to each of the others by blood, marriage or adoption; or (iii) two or more natural persons meeting the requirements of (ii) above, except that there is among them not more than one person who is not related to some or all of the others.

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17.2 Use of Common Elements . Common Elements shall not be obstructed, littered, defaced or misused in any manner. No articles belonging to Owners shall be kept thereon. Balconies, terraces, porches, walkways, and stairways shall be used only for the purposes intended. They shall not be used for: hanging or drying clothing where visible from the outside of a Unit; for outdoor cooking; for cleaning of rugs or other household items; or for storage of other personal property. Storage of bicycles is permitted only in the designated areas. No decorative pots, ornamentation, potted plants, decorative lighting, fountains, or other decorations may be placed outside a Unit unless not visible from outside the Unit or except as approved by the Board of Directors for placement in courtyard entry areas.

17.3 Unlawful, Offensive, Immoral Use Prohibited. No unlawful, offensive, or immoral use, as determined at the discretion of the Board of Directors, shall be made of a Unit and Condominium Property. All laws, ordinances, and regulations of all governmental bodies having jurisdiction thereof shall be observed.

17.4 Guests. Overnight Guests may occupy a Unit when the Primary Occupant is present. However, in the absence of the Primary Occupant, the occupancy of any overnight Guests in a Unit may be subject to Rules and Regulations.

17.5 Minors. The age of Occupants of Units is not restricted. Every occupant under eighteen (18) years of age must be supervised by an adult to ensure that they do not become a source of annoyance to other Owners. The Board of Directors shall at all times have the authority to reasonably require that the Owner, Guest, Tenant or other Occupant who is responsible for a particular minor remove him or her from any Common Element when the minor’s conduct is such that the Board of Directors, manager or other designee believes this action is necessary.

17.6 Pets . No animals, wildlife, livestock, reptiles or poultry of any kind shall be raised, harbored, bred or kept on any portion of the Condominium Property. Owners may not maintain more than one (1) household pet within any Unit. The foregoing is limited to one (1) dog, weighing up to thirty (30) pounds, or one cat. This provision shall not prohibit the keeping of fish or a caged household bird in a Unit, provided that the bird does not become a nuisance or annoyance to their neighbors. Any owner who keeps a pet, or permits a pet to be kept in his Unit is fully liable for all damage or injury to persons or property caused by the pet. The ability to keep pets is a privilege, and not a right. The Board of Directors is empowered to order and enforce the removal of any pet which becomes a source of unreasonable annoyance to other residents of the Condominium, such as frequent noise or aggressive behavior. Pets must be leashed or carried under the Owner’s arm at all times while on the Condominium Property. The pet owner shall immediately remove any animal droppings left by the pet on the Common Elements. The Association may establish and enforce fines for violations of this provision.

17.7 Nuisances . No Owner shall use a Unit, or permit it to be used, in any manner that is disturbing, detrimental or a nuisance to the Occupants of another Unit, nor which would be inconsistent with the maintenance of the highest standards for a first class residential condominium, nor permit a Unit to be used in a disorderly or unlawful way. The use of each Unit shall at all times be consistent with existing laws and covenants of this Declaration and the Bayside Master Documents. The Occupants of all Units shall conduct themselves in a peaceful and orderly manner at all times.

17.8 Signs. No person may post or display any signs anywhere on the Condominium Property, including without limitation “For Sale”, “For Rent”, “Open House” or other similar signs.

17.9 Motor Vehicles: Parking Spaces . The number of parking spaces in the Condominium is limited, so the ability of the Owners and Occupants of any Unit to park or store more than two (2) motor vehicles in the Condominium at any time may be limited or regulated by the Association. No motor vehicle shall be parked within the Condominium except on a paved surface intended for such use. Boats, trailers of any kind, campers, mobile homes, motor homes, buses, truck campers, recreational vehicles, and the like, and any vehicle without current registration or not in operable condition, may not be parked, stored or kept within the Condominium. For purposes of this paragraph, “kept” shall mean present for any period of twelve (12) consecutive hours or overnight, whichever is shorter. Commercial vehicles of

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all kind (other than those temporarily present on service business), may not be parked on the Common Elements for more than four (4) hours per day, unless such vehicle is necessary in the actual construction or repair of a structure or for grounds maintenance or maintenance of public utilities. The parking of 2-axle, non-commercial pickup trucks and vans is permitted for vehicles that meet all of the following requirements:

A. The vehicle bears no exterior signage.

B. The vehicle, if a van, must have windows on all side panels and seating capacity throughout.

C. No tools, ladders, pipes, equipment, merchandise, racks, material or supplies are regularly kept or stored in the vehicle where visible to others.

D. The vehicle may not be used as a domicile or residence, either permanent or temporary, while on Condominium Property.

The foregoing restrictions shall not apply to motor vehicles parked in garages.

17.10 Antennas, Radio Equipment and Flagpoles. No outside television, radio, or other electronic towers, aerials, antennae, satellite dishes or devise of any type for the reception or transmission of radio or television broadcasts or other means of communication shall hereafter be erected, constructed, placed or permitted to remain on any Unit or upon any improvements thereon, unless expressly approved in writing by the Board, except that this prohibition shall not apply to those antennae specifically covered by 47 C.F.R., Part 1, subpart S, Section 1.4000, as amended and promulgated under the Federal Telecommunications Act of 1996, as amended from time to time. The Association shall be empowered to adopt rules governing the types of antennae, restrictions relating to safety, location and maintenance of antennae. The Association may adopt and enforce reasonable rules limiting installation of permissible dishes or antennae to locations, not visible from the outside or neighboring residences, and integrated with the residences and surrounding landscape, to the extent that reception of an acceptable signal would not be unlawfully impaired by such rules. Antennas shall be installed in compliance with all federal, state and local laws and regulations, including zoning, land-use and building regulations. A flagpole, for display of the American Flag only, may be permitted if its design and location are first approved by the Board. An approved flagpole shall not be used to mount antennae. It is the intent of this Section to protect residents from unreasonable interference with television reception, electronic devices, and the operation of home appliances which is sometimes caused by ham radios, CB base stations or other high-powered broadcasting equipment. Nothing in this Section shall prevent the use of a television or radio on the lanai of a Unit subject to any noise or nuisance covenants or Rules of the Association.

17.11 Grandfathering. The Board of Directors may, for good cause, in its sole and absolute discretion, but with no obligation to do so, grandfather and/or waive, in whole or in part, any violation of the use restrictions in this Section. Any such grandfathering or waiver shall not be deemed a precedent waiver or estoppel for other violations by the same person or other persons.

17.12 Rules and Regulations . The Board of Directors may adopt Rules and Regulations pertaining specifically to the use restrictions contained in this Section.

18. FORM AND TRANSFER OF OWNERSHIP OF UNITS. In order to maintain a community of congenial, financially responsible residents with the objectives of protecting the value of the Units and facilitating the development of a stable, quiet community and peace of mind for all residents, the transfer of ownership of a Unit by an Owner shall be subject to the following provisions, as enforced under the Declaration, so long as the Association exists, which provisions each Owner of a Unit covenants to observe:

18.1 Forms of Ownership.

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A. Individual. A Unit may be owned by an individual person who has qualified and been approved as provided below.

B. Co-ownership. Co-ownership of Units is permitted. If the co-owners are to be other than husband and wife, the Board of Directors shall condition its approval upon the designation by the proposed new Owners of not more than two (2) natural persons as Primary Occupants. The use of the Unit by other persons shall be as if the Primary Occupants were the only actual Owners. The intent of this provision is to prevent multiple individuals or families from using a Unit on a transient basis. No more than one such change will be approved in any 12-month period, except in the case of the death or incapacity of the Primary Occupant.

C. Ownership by Corporations, Trusts or Partnerships. A Unit may be owned in trust or by a corporation, partnership, or other entity which is not a natural person, if approved in the manner provided for other transfers of title. The intent of this provision is to allow flexibility in estate, financial or tax planning, and not to allow circumstances in which the Unit may be used as short-term transient accommodations. The approval of a trust, or corporation, partnership or other entity as an Owner shall be conditioned upon designation by the Owner of not more than two (2) natural persons to be the Primary Occupants. The use of the Unit by other persons shall be as if the Primary Occupants were the only actual Owners. Any change in the Primary Occupant shall be treated as a transfer of Ownership subject to all the provisions of this Section. No more than one such change will be approved in any 12-month period, except in the case of the death or incapacity of the primary occupant.

D. Designation of Primary Occupants. Each Owner of a Unit which is owned in the forms of ownership stated in preceding Subsections (B) and (C) shall designate not more than two Primary Occupants in writing to the Association. If any Owner fails to do so, the Board of Directors may make the initial designation for the Owner, and shall notify the Owner in writing of its action. Each Primary Owner shall be subject to the approval process set forth in Subsection 18.3 below.

E. Life Estate. A Unit may become subject to a life estate, either by operation of law or by approved voluntary conveyance. In that event, the life tenant shall be the only member in the Association from such Unit and occupancy of the Unit shall be as if the life tenant was the only Owner. Upon termination of the life estate, the holder of the remainder interest shall have no occupancy right unless separately approved by the Association. The life tenant and remaindermen shall be jointly and severally liable for all Assessments and charges against the Unit. The life tenant may, by signed agreement, transfer the right to vote in all Association matters to any one remainderman, subject to approval by the Association of such arrangement. If there is more than one life tenant, they shall be treated as if they were co-owners for purposes of voting and occupancy rights.

18.2 Transfers.

A. Sale. No Owner may dispose of a Unit or any interest therein by sale without the prior written approval of the Association.

B. Devise, Gift or Inheritance. If any Owner acquires his title by devise, gift or inheritance, his right to occupy or use the Unit shall be subject to the approval of the Association. The approval of the Association shall not be denied to any devisee or heir who was the Owner's lawful spouse at the time of death, or was related to the Owner by blood or adoption within the first degree of relationship; provided, however, notwithstanding the foregoing, any such devisee or heir may be disapproved for grounds set forth in Subsection 18.3 B (1), (2) or (3) below.

C. Other Transfers. If an Owner shall acquire his title in any manner not considered in the foregoing subsections including, without limitation, foreclosures and other involuntary conveyances, his right to occupy or use the Unit shall be subject to the approval of the Association under the procedures set forth in Subsection 18.3 below.

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D. No Application to First Mortgagees. The provisions of this Section 18 are not applicable to the acquisition of title by a first mortgagee who acquires title through foreclosure or deed-in-lieu of foreclosure. However, such provisions shall apply to any assignment of right or the subsequent resale of a Unit by such first mortgagee. The provisions shall also apply to acquisitions of title by persons or entities other than first mortgagees through foreclosure and any other involuntary conveyance.

18.3 Procedures.

A. Notice to Association.

(1) Sale or gift. An Owner intending to make a sale or gift of his Unit or any interest therein shall give to the Board of Directors or its designee written notice of such intention at least thirty (30) days prior to the date of the proposed transfer, together with the name and address of the proposed transferee and such other information as the Association may reasonably require. The Association may require the personal appearance of any purchasers or donee, his spouse and other Occupants, if any, as a condition of approval.

(2) Devise, Inheritance, or Other Transfers. The transferee must notify the Association of his ownership within 15 days of such conveyance and submit to the Association a certified copy of the instrument evidencing his ownership and such other information as the Association may reasonably require. The transferee shall have no occupancy right unless and until approved by the Association, but may sell or lease the Unit following the procedures provided in this Section or Section 19.

(3) Failure to Give Notice. If no notice is given, the Association, at its election, may approve, approve with conditions or disapprove any transferee under this Section at the time it learns of the transfer. If any Owner fails to obtain the Association's approval prior to selling an interest in a Unit, such failure shall create a rebuttable presumption that the transferor and the transferee intend to violate the covenants of the Governing Documents and shall constitute good cause for Association disapproval.

(4) Time Limit for Approval. Within thirty (30) days of receipt of the required notice and all information requested, whichever occurs last, the Association shall approve, approve with conditions, or disapprove the transfer. If a transfer is approved or approved with conditions, the approval shall be stated in a Certificate of Approval executed by the Association in recordable form and delivered to the transferee. If the Board neither approves nor disapproves within said thirty (30) days, such failure to act shall be deemed the equivalent of approval, and on demand the Association shall issue a Certificate of Approval to the transferee.

B. Disapproval. The Association may disapprove a transfer for good cause only upon a majority vote of the whole Board of Directors. The Board may obtain a written opinion from its attorney as to whether its disapproval is based upon good cause. The following grounds shall be presumed to be good cause for the basis of disapproval:

(1) A prospective transferee seeking approval has either been: (i) convicted of or plead no contest (nolo contendere) to a felony involving violence to persons or property, a felony involving possession or sale of a controlled substance, or a felony demonstrating dishonesty or moral turpitude; or (ii) in the reasonable discretion of the Board of Directors, has had a significant history of felony and/or non-felony charges, with or without convictions;

(2) The prospective transferee seeking approval has, in the reasonable discretion of the Board of Directors, a history of disruptive behavior or disregard for the rights or property of others;

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(3) The prospective transferee seeking approval has evidenced an attitude of disregard for Association covenants or rules by his conduct in this Association as a Tenant, Owner or Occupant of a Unit;

(4) The prospective transferee seeking approval has failed to provide the information, fees, or interviews required to process the application in a timely manner or provided false information during the application process; or

(5) The transaction, if a sale or gift, was concluded by the parties without having sought and obtained the prior approval required herein.

The foregoing shall give the Association the right in its sole and reasonable discretion, but without the legal obligation, to do criminal and other background checks upon any prospective transferee to the extent it deems necessary and appropriate. The failure of the Association to do a criminal background check on any future Owner shall not waive or restrict any right to do so as to any other prospective transferee nor shall such failure result in any liability to the Association, its Board members, officers, employees or agents.

18.4 Unapproved Transfers. The grantee(s) of any sale or transfer of ownership of a Unit which is not approved pursuant to this Section shall have no occupancy right unless subsequently approved in writing by the Board of Directors. Such approval may only be based upon extraordinary circumstances.

18.5 Manager or Committee Approval. To facilitate transfers proposed at times when many Board members are not in residence, the Board of Directors may, by resolution, delegate its authority to approve transfers to its property manager or an ad hoc committee, consisting of at least three (3) Owners. By adopting the resolution, the Board automatically grants to the manager or the chairperson of the committee power, hoc pro vice, to sign Certificates of Approval on behalf of the Association.

18.6 Fees for Processing Applications for Approval to Purchase or Lease. The Association may charge the Owner a fee for processing an application for approval under this Section.

19. LEASING OF UNITS. In order to foster a stable residential community and prevent a motel-like atmosphere, the leasing of Units by their Owners shall be restricted as provided in this Section. All Leases must be in writing. An Owner may lease only his entire Unit after receiving the approval of the Association. The Tenants must be natural persons as opposed to an artificial entity such as a corporation, partnership, trust, etc. The provisions of the Governing Documents shall be deemed expressly incorporated into any Lease. An Owner may lease his Unit only in accordance with the following provisions:

19.1 Procedures.

A. Notice by the Owner. An Owner intending to lease his Unit shall submit to the Association or its designee an application for approval, in form acceptable to the Association, at least twenty (20) days prior to the first day of occupancy under the Lease, together with the name and address of the proposed Tenants, a copy of the proposed Lease, and such other information as the Association may reasonably request. The applicant must sign for having received copies of the Rules and Regulations of the Association. The Board may require the personal appearance of any Tenant and his spouse, if any, as a condition of approval.

B. Association Action. After the required notice and all information have been received, the Association shall have twenty (20) days in which to approve, approve with conditions, or disapprove the proposed Lease. If the Association neither approves, approves with conditions, nor disapproves within that time, its failure to act shall be deemed the equivalent of approval, and on demand the Board shall issue a Certificate of Approval to the Tenant. The renewal of any Lease to the same Tenants shall not require Association approval unless expressly required by the Board of Directors.

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C. Disapproval. The Association may disapprove the transfer for good cause upon a majority vote of the whole Board of Directors. The Board may obtain a written opinion from its attorney as to whether its disapproval is based on good cause. The following grounds shall be presumed to be good cause for the basis of disapproval:

(1) the Owner seeking approval is delinquent in the payment of Assessments at the time the application is considered;

(2) the application for approval on its face gives the Board of Directors reasonable cause to believe that the applicant intends to conduct himself in a manner inconsistent with the Governing Documents;

(3) the prospective Tenant has either been: (i) convicted of or plead no contest (nolo contendere) to a felony involving violence to persons or property, a felony involving possession or sale of a controlled substance, or a felony demonstrating dishonesty or moral turpitude; or (ii) has a significant history of felony and/or non-felony changes, without or without convictions;

(4) the prospective Tenant, during previous occupancies, either in the Condominium or elsewhere, has evidenced disregard for the covenants and rights of others;

(5) the Owner or prospective Tenant has failed to provide the information, fees or interviews required to process the application in a timely manner or provided false information; or

(6) the Owner seeking approval fails to give proper notice of his intention to lease his Unit.

The foregoing shall give the Association the right in its sole and reasonable discretion, but not the legal obligation, to conduct criminal and other background checks upon any prospective Tenants of the nature and to the extent it deems necessary and appropriate. The failure of the Association to conduct criminal and other background checks on any prospective Tenant shall not waive or restrict any right to do so as to any other applicant nor shall such failure result in any liability to the Association, its Board members, officers, employees or agents.

D. Failure to Give Notice or Obtain Approval. If proper notice is not given, the Board of Directors at its option may approve, approve with conditions, or disapprove the Lease. Any Lease entered into without approval may, at the option of the Board, be treated as a nullity, and the Board shall have the power to evict the Tenant with five (5) days’ notice, without securing consent to such eviction from the Owner.

E. Applications. Applications for authority to Lease shall be made to the Board of Directors on such forms and include such terms as the Board may provide from time to time. The legal responsibility for paying Assessments may not be delegated to the Tenant.

F. Manager or Committee Approval. To facilitate transfers proposed at times when many Board members are not in residence, the Board of Directors may, by resolution, delegate its authority to approve Leases to its property manager or an ad hoc committee, consisting of at least three (3) Owners. By adopting the resolution, the Board automatically grants to the manager or the chairperson of the committee power, hoc pro vice, to sign Certificates of Approval on behalf of the Association.

19.2 Term of Lease and Frequency of Leasing. The minimum lease term is thirty (30) consecutive days. A lease for the entire month of February will be deemed to meet this requirement. For purposes of this restriction, the first day of occupancy under the Lease shall conclusively determine in which year the Lease occurs. No Lease may be for a period of more than one (1) year. However, the Board of Directors may summarily, in its discretion, approve the same Lease from year to year. No subleasing or assignment of lease rights by the Tenant is allowed.

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19.3 Occupancy During Lease Term . No one but the Tenant, his family members within the first degree of relationship by blood, adoption, legal custody or marriage, and their spouses and Guests may occupy the Unit. A Tenant in residence may not have more than two (2) overnight Guests per bedroom. All Guests must be registered with the manager.

19.4 Occupancy in Absence of Tenant . If Tenants absent themselves from the Unit for any period of time during the Lease term, his family within the first degree of relationship already in residence may continue to occupy the Unit and may have Guest subject to all the restrictions contained in the Governing Documents. If the Tenant and all of the family members mentioned in the foregoing sentence are absent, no other person may occupy the Unit.

19.5 Use of Elements and Association Condominium Property . To prevent overtaxing the facilities, an Owner whose Unit is leased may not use the recreation or parking facilities during the lease term.

19.6 Regulation by Association . All of the provisions of the Governing Documents shall be applicable and enforceable against any person occupying a Unit as a Tenant or Guest of Tenant to the same extent as against the Owner. A covenant on the part of each Tenant and his Guests to abide by the Association Rules and Regulations and all other provisions of the Governing Documents, designating the Association as the Owner's agent with the authority to terminate any Lease and evict the Tenants in the event of breach of such Rules and provisions, shall be deemed to be included in every Lease, whether oral or written, and whether specifically expressed in such document or not.

19.7 Fees and Deposits for the Lease of Units . Whenever herein the Association’s approval is required to allow the lease of a Unit, the Association may charge the Owner a fee for processing the application, such fee not to exceed the maximum allowed by law. No fee may be charged for approval of a renewal or extension of a Lease with the same Tenant. The Association may also require the Tenant to post a security deposit before occupying the Unit to protect the Association against damages to the Common Elements by the Tenant.

19.8 Unapproved Leases . Any Lease of a Unit not approved pursuant to this Section shall be void and unenforceable unless subsequently approved by the Association.

20. FINES.

20.1 Levy of Fine. Every Owner, his Guests, Tenants, and all other Occupants of the Owner’s Unit shall comply with the Governing Documents. The Board of Directors or its designee may levy a fine upon any such person who fails to comply with the Governing Documents. The fine shall be based upon but shall not exceed the limitations set forth in the Condominium Act which is currently $100.00 per violation; provided, however, a fine may be levied on the basis of each day of continuing violation, with a single notice and opportunity for hearing, provided that no fine shall in the aggregate exceed $1,000.00.

20.2 Procedure of Fine and Hearing.

A. Notice. The party or parties against whom the fine is levied shall be promptly notified of the fine and afforded an opportunity for hearing before a committee of Owners after reasonable notice of not less than fourteen (14) days. The notice shall include:

(1) a statement of the date, time and place of the hearing;

(2) a statement of the provisions of the Governing Documents which have been violated;

(3) a short and plain statement of the matters asserted by the Association; and

(4) the amount of the fine(s) or daily amount of fines if the violations are ongoing.

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B. Hearing; Fine Committee. The hearing, if timely requested, must be held before a committee of other Owners who are neither members of the Board of Directors nor persons residing in a Board member’s household. If the committee does not agree, the fine may not be imposed. If the Notice of Fine and hearing is given within 30 days from the levying of the fine by the Board and the finee(s) fail to notify the Board or its designee of his, her or their election to have a hearing within the time specified therefore (not less than 14 days), the right to a hearing shall, unless approved by the Board, be deemed irrevocably waived.

C. Payment of Penalties. Fines shall be paid not later than five (5) days either: (i) within five (5) days after the waiver of the hearing described in section 20.2 B above; or (ii) within five (5) days after the fine committee has delivered its written notification of its decision.

D. Remedy. For non-payment of fines the Association shall have all of the remedies applicable under law.

C. Non-Exclusive Remedy. The fines provided for herein shall not be construed to be an exclusive remedy of the Association, but shall exist in addition to all other rights and remedies which the Association may be otherwise legally entitled.

D. Rules and Regulations. The Association may adopt Rules and Regulations for the process and procedures of this Section.

21. SUSPENSION OF USE OF COMMON ELEMENTS

21.1 Generally. In addition to the fines and other remedies set forth above and to the extent not prohibited by law or the Governing Documents, the Association may suspend all or some use of the Common Elements, including the services and amenities, for a reasonable period as to all or any of the Owners, Guests, Tenants or other Occupants if any of them are in violation of the Governing Documents. For example, the Association may in its discretion, suspend the use rights of Tenants if the Owners of a Unit are in violation of the Governing Documents. This power does not apply to Limited Common Elements or Common Elements needed to access the Unit, utility services provided to the Unit, parking spaces or elevators. If an Owner is more than ninety (90) days delinquent in paying a monetary obligation including, without limitation, Assessments, fines and other charges, the Association may suspend the foregoing services and amenities of an Owner, his Guests, Tenants and other Occupants until the monetary obligation has been paid in full. To the extent permitted by the Condominium Act, such suspension shall include, but no be limited to, the following: (i) the right to use the recreation facilities, if any; (ii) the right to use the other Common Elements and any other Association Properties; (iii) the right to use a scanner or other automated gate entry system; (iv) the right to cable television or Wi-Fi services provided by the Association; and (v) the right to serve as a member of the Board of Directors. All suspensions imposed must be approved at a properly noticed Board meeting. Upon approval, the Association must notify the Owner and, if applicable, the Guest, Tenant, and other Occupants of the Unit by mail or hand-delivery.

21.2 Notice and Hearing. A suspension may not be imposed unless the Association first provides at least fourteen (14) days’ written notice and an opportunity for a hearing to the suspended party in a manner set forth in Section 20.2 above. The hearing, if timely request, must be held before a committee of other Owners who are neither members of the Board of Directors nor persons residing in a Board member’s household. If the committee does not agree, the suspension may not be imposed. If the notice of suspension and hearing is given within 30 days from the levying of the suspension by the Board, and the suspensionee(s) fail to notify the Board or its designee of his, her or their election to have a hearing within the time specified therefore (not less than 14 days), the suspensionee’s right to a hearing shall, unless approved by the Board, be deemed irrevocably waived.

21.3 Rules and Regulations. The Association may adopt Rules and Regulations for the process and procedures of this Section.

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22. INSURANCE. In order to adequately protect the Association and the Common Elements, insurance shall be carried and kept in force at all times in accordance with Florida law and the following provisions:

22.1 Duty and Authority of Association to Obtain. The Association shall use its best efforts to obtain and keep in force at all times the insurance coverage which it is required by Florida law and may obtain and keep in force any or all of such other insurance as set forth below. The name of the insured shall be the Association or, in the discretion of the Board of Directors, an insurance trustee, individually and as agent for the Association and for the Owners without naming them, and their mortgagees. The Association shall coordinate its insurance coverage with that of the Bayside Master Association to assure full, yet efficient, coverage pursuant to Florida law.

A. Property Damage Insurance. The Association shall obtain and maintain insurance for loss or damage by fire, extended coverage (including windstorm), vandalism and malicious mischief, and other hazards covered by the standard “All Risk” property contract. Except as otherwise provided in the Condominium Act, property insurance must be based on the replacement cost of the property to be insured as determined by an independent appraisal or update of a prior appraisal. The replacement cost must be determined at least once every 36 months. When determining the adequate amount of property insurance coverage, the Association may consider deductibles as set forth in the Condominium Act.

B. Liability Insurance. The Association shall obtain and maintain premises and operations liability insurance for bodily injury and property damage in such limits of protection and with such coverage as shall be required by the Board of Directors with cross-liability endorsement to cover liabilities of the Owners as a group.

C. Automobile Insurance. The Association shall obtain and maintain Automobile liability insurance for bodily injury and property damage for all Association owned and/or non-owned motor vehicles in such limits of protection and with such coverage as shall be required by the Board of Directors.

D. Flood Insurance. If required by law, the Association shall maintain flood insurance up to the maximum amount available from time to time as underwritten and insured by the federal, state or local government.

E. Worker’s Compensation Insurance. If required by law, the Association shall maintain worker’s compensation insurance on at least a minimum premium basis.

F. Fidelity Insurance or Bond. The Association shall obtain and maintain adequate insurance or fidelity bonding of all persons who control or disburse funds of the Association. The fidelity insurance or bond must cover the maximum funds that will be in the custody of the Association or its management agent at any one time, and the Association shall bear the cost of insurance or bonding. As used in this subpart, the term “all persons who control and disburse funds of the Association” includes, but is not limited to, those individuals authorized to sign checks on behalf of the Association, and the president, secretary, and treasurer of the Association.

G. Premiums. Premiums upon insurance policies purchased by the Association shall be paid by the Association and charged to the Owners as a Common Expense.

H. Optional Coverage. The Association may purchase and carry other such insurance coverage as the Board of Directors may determine from time to time to be in the best interest of the Association.

I. Waiver of Subrogation. If available and where applicable, Association shall endeavor to obtain insurance policies which provide that the insurer waives its right to subrogation as to any claim against Owners, the Association, or their respective servants, agents or invitees, except for any claim based upon gross negligence evidencing reckless, willful or wanton disregard for life or property.

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J. Insurance Proceeds. All insurance policies purchased by the Association shall be for the benefit of the Association, the Owners and their mortgagees, as their interests may appear, and all proceeds shall be payable to the Association. The duty of the Association shall be to receive such proceeds as are paid and hold and disburse the same in trust for the purposes stated herein and for the benefit of the Owners and their respective mortgagees in the following shares:

(1) Common Elements. Proceeds on account of damage to Common Elements shall be held in as many undivided shares as there are Units, the shares of each Owner being the same as his share in the Common Elements.

(2) Units. Proceeds on account of Units or contents of Units shall be held in the following undivided shares.

(i) Partial destruction, when the buildings are to be restored - for the Owners of damaged Units in proportion to the cost of repairing the damage suffered by each Owner less the deductible.

(ii) Total destruction of the buildings or when the buildings are not to be restored - for Owners of all Units, each Owner's share being in proportion to his share in the Common Elements.

(iii) If a mortgagee endorsement has been issued as to a Unit, the shares of the mortgagee and the Owner shall be as their interests appear. In no event shall any mortgagee have the right to demand application of insurance proceeds to any mortgage or mortgages which it may hold against Units, except to the extent that insurance proceeds exceed the actual cost of repair or restoration of improvements or if the Condominium is being terminated. No mortgagee shall have any right to participate in determining whether improvements will be restored after casualty.

K. Distribution of Proceeds. Proceeds of insurance policies received by the Association shall be distributed to or for the benefit of the Owners in the following manner:

(1) Cost of Reconstruction or Repair. If the damage for which the proceeds are paid is to be repaired or reconstructed, the proceeds shall be paid to defray the costs thereof. Any proceeds remaining after defraying costs shall be distributed to the beneficial Owners, remittances to Owner and their mortgagees being paid jointly to them. This is a covenant for the benefit of mortgagees and may be enforced by them.

(2) Failure to Reconstruct or Repair. If it is determined in the manner elsewhere provided that the damage for which the proceeds are paid shall not be reconstructed or repaired, the remaining proceeds shall be distributed to the Owners (remittances to Owners and their mortgagees being payable jointly to them). This is a covenant for the benefit of mortgagees and may be enforced by such mortgagees.

(3) Certificate. In making distribution to Owners and their mortgagees, the Association may rely upon a certificate of an abstract attorney or title company as to the names of the Owners and mortgagees.

L. Association as Agent. The Association is hereby irrevocably appointed agent for each Owner to adjust all claims arising under insurance policies purchased by the Association for damage or loss to the Condominium Property.

22.2 Duty and Authority of Owner to Obtain Insurance . Each Owner is responsible for insuring his own Unit and the personal property therein; all floor, wall and ceiling coverings; all built-in cabinets, appliances, water heaters, air conditioning and heating equipment, and electrical fixtures that are located

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within the Unit and required to be repaired or replaced by the Owner; and all alterations, additions and improvements made to the Unit or the Common Elements by the Owner or his predecessors in title. Each Owner is expected to carry homeowner’s insurance, with endorsements for leakage, seepage and wind-driven rain, additions and alterations, and loss assessment protection, or recognize that he bears financial responsibility for any damage to his property or liability to others that would otherwise be covered by such insurance.

23. RECONSTRUCTION OR REPAIR AFTER CASUALTY. If any part of the Condominium Property, including the Unit, is damaged by casualty, whether it shall be reconstructed or repaired shall be determined in the following manner:

23.1 Damage to Unit: Duty of Repair. For loss or damage occurring within one or more Units, any Association insurance proceeds on account of that loss or damage shall be distributed to the Owner(s) of the damaged Unit(s). The Owner(s) of the damaged Units(s) are responsible for carrying our reconstruction and repair (except for those portions, if any, the Association is responsible to maintain, repair or replace where the property to be repaired or rebuilt is covered by the Association’s insurance). Where the Owner and the Association both have reconstruction or repair responsibility, any insurance proceeds on account of that damage shall be shared proportionately to the cost of the repairs each party has to make. Similarly, the burden of any applicable deductible is shared proportionately to the degree each party received the benefits of the insurance proceeds.

23.2 General Requirements for Reconstruction and Repair. All reconstruction work after a casualty loss may be conditioned upon the approval of the construction methods, the qualifications of the proposed contractor, or the contract that is used for that purpose. All required governmental permits and approvals shall be obtained before commencing reconstruction.

23.3 Damage to Units Only – Not Common Elements. Owners are responsible for the cost of reconstruction or repair of any Units after a casualty loss. Where loss or damage occurs within a Unit or Units, without damage to the Common Elements, the insurance proceeds, less the deductible (which shall be paid by the Owner) shall be distributed to the Owner(s) (remittances to Owners and their mortgagees being payable jointly to them).

23.4 Damage to Units and Common Elements - Less than "Very Substantial. ” Where loss or damage occurs to any Unit or Units and/or the Common Elements, but the loss is less than “very substantial” as described in Section 23.5 below, it shall be mandatory for the Owners to repair, restore, and rebuild damaged Units and the Association to repair, restore and rebuild the Common Elements. Such repairs, restoration and rebuilding shall be commenced and completed as soon as reasonably possible.

23.5 Damage to Units and Common Elements -“Very Substantial Damage.” As used in this Declaration, the term “very substantial damage” shall mean loss or damage whereby three-fourths (3/4ths) or more of the total Units are rendered uninhabitable. Should such “very substantial damage” occur, the following shall apply:

A. A Member’s meeting shall be called by the Board of Directors to determine the wishes of the Members with regard to rebuilding or abandonment of the Condominium, subject to the following:

(1) If the net insurance proceeds available for restoration and repair are sufficient to cover at least 90% of the estimated cost thereof, then the Condominium Property shall be restored or repaired unless two-thirds (2/3rds) of the Owners vote for abandonment, or unless the then applicable zoning or other regulatory laws will not allow reconstruction of the same number and general type of Unit, in which case the Condominium. The first of such meetings shall be held not less than 60 days after the casualty. The meetings shall be subject to the following:

(2) If the net insurance proceeds available for restoration and repair are not sufficient to cover 90% of the estimated cost thereof, and a substantial Special Assessment will be

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required, then unless two-thirds (2/3rds) of the Owners vote in favor of such Special Assessment and against termination of the Condominium, it shall be terminated and the property removed from the provisions of the Condominium Act. If two-thirds (2/3rds) of the Owners vote in favor of the Special Assessment, the Association, through its Board of Directors, shall levy the Assessment and shall proceed to negotiate and contract for such repairs and restoration.

B. If any dispute shall arise as to whether “very substantial damage” has occurred, a determination by the Board of Directors shall be binding upon all parties.

23.6 Distribution of Surplus of Insurance Proceeds. It shall be presumed that the first monies disbursed for repair and restoration shall be from the insurance proceeds. If there is a balance in the reconstruction funds after the payment of all costs of repair and restoration, such surplus shall be distributed to the Owners, except as otherwise provided herein.

23.7 Equitable Relief. If the damage to any Units and/or Common Elements which are required to be repaired and restored are not completed within a reasonable time, any Owner or the Association may petition a court for equitable relief, which may include a termination of the Condominium and a subsequent partition of the property. For the purposes of this provision, it shall be presumed that repair and restoration has occurred within a “reasonable period of time” if substantial work is commenced within four (4) months and completed within nine (9) months following the damage or destruction. The fact that a Unit is uninhabitable does not excuse the Owner from paying Assessments for Common Expenses.

23.8 Plans and Specifications. Any reconstruction or repairs must be substantially in accordance with the plans and specifications for the original buildings, or in lieu thereof, according to plans and specifications approved by the Board of Directors of the and by the Owners of three-fourths (3/4) of the Units.

24. CONDEMNATION.

24.1 Deposit of Awards with Association. The taking of all or any part of the Condominium Property by condemnation or eminent domain shall be deemed to be a casualty as to the portion taken, and the awards for that taking shall be deemed to be proceeds from insurance on account of the casualty. Even though the awards may be payable to Owners, the Owners shall deposit the awards with the Association; and if any fail to do so, a charge shall be made against a defaulting Owner in the amount of his award.

24.2 Determination Whether to Continue Condominium. Whether the Condominium will be continued after a condemnation affecting all or part of the Condominium Property will be determined in the manner provided for determining whether damaged property will be reconstructed and repaired after a casualty.

24.3 Disbursement of Funds. If the Condominium is terminated after condemnation, the proceeds of all awards and special assessments will be owned and distributed in the manner provided for insurance proceeds when the Condominium is terminated after a casualty. If the Condominium is not terminated after condemnation, but the size of the Condominium will be reduced, the Owners of condemned Units, if any, will be made whole, and any property damaged by the taking will be made usable in the manner provided below. Proceeds of awards and special assessments shall be used for these purposes and shall be disbursed in the manner provided for disbursement of funds after a casualty.

24.4 Association as Agent. The Association is hereby irrevocably appointed as each Owner’s agent for purposes of negotiating or litigating with the condemning authority for the purposes of realizing just compensation for the taking.

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24.5 Units Reduced but Habitable. If the taking reduces the size of a Unit and the remaining portion of the Unit can be made habitable, the award for the taking of a portion of that Unit shall be used for the following purposes in the order stated, and the following changes shall be effected in the Condominium:

A. Restoration of Unit. The Unit shall be made habitable. If the cost of restoration exceeds the amount of the award, the additional funds required shall be charged against the Owner of the Unit.

B. Distribution of Surplus. The balance of the award, if any, shall be distributed to the Owner of the Unit and to each mortgagee of the Unit, the remittance being made payable jointly to the Owner and mortgagees.

C. Adjustment of Shares in Common Elements. If the floor area of a Unit is reduced by the taking, the number representing the share in the Common Elements appurtenant to the Unit shall be reduced in the proportion by which the floor area of the Unit is reduced by the taking, and then the shares of all Owners in the Common Elements shall be restated as percentages of the total of the numbers representing their original shares as reduced by the taking.

24.6 Unit Made Uninhabitable. If the taking is of any entire Unit or so reduces the size of a Unit that it cannot be made habitable, the award for the taking of the Unit shall be used for the following purposes in the order stated, and the following changes shall be effected in the Condominium.

A. Payment of Award. The fair market value of the Unit immediately prior to the taking shall be paid to the Owner of the Unit and to each mortgagee of the Unit (the remittance being made payable jointly to the Owner and mortgagee(s).

B. Addition to Common Elements. If possible and practical, the remaining portion of the Unit shall become a part of the Common Elements and shall be placed in condition for use by all Owners in the manner approved by the Board of Directors.

C. Adjustment of Shares in Common Elements. The shares in the Common Elements appurtenant to the Units that continue as part of the Condominium shall be adjusted to distribute the ownership of the Common Elements among the reduced number of Owners. This shall be done by restating the shares of continuing Owners in the Common Elements as percentages of the total of the numbers representing the shares of these as they existed prior to the adjustment.

D. Assessments. If the amount of the award for the taking is not sufficient to pay the fair market value of the condemned Unit to the Owner and to condition the remaining portion of the Unit for use as a part of the Common Elements, the additional funds required for those purposes shall be raised by Special Assessment against all Owners who will continue as Owners of Units after the changes in the Condominium affected by the taking. The Assessments shall be made in proportion to the shares of those Owners in the Common Elements after the changes effected by the taking.

E. Appraisals. If the fair market value of a Unit prior to the taking cannot be determined by agreement between the Owner and the Association within thirty (30) days after notice by either party, the value shall be determined by appraisal in accordance with the following. The Owner, the first mortgagee, if any, and the Association shall each appoint one M.A.I. appraiser, who shall appraise the Unit and shall determine the fair market value by computing the arithmetic average of their appraisal of the Unit. Thereafter, a judgment of specific performance upon the value arrived at by the appraisers may be entered in any court of competent jurisdiction. The cost of appraisal shall be paid by the party selecting the appraiser.

24.7 Taking of Common Elements. Awards for the taking of Common Elements shall be used to make the remaining portion of the Common Elements usable in the manner approved by the Board of Directors. The balance of such awards, if any, shall be distributed to the Owners in the shares in which

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they own the Common Elements after adjustment of these shares on account of the condemnation. If a Unit is mortgaged, the remittance shall be paid jointly to the Owner and mortgagee(s) of the Unit.

24.8 Amendment of Declaration. The changes in Units, in the Common Elements and in the ownership of the Common Elements and liability for common expenses that are necessitated by condemnation shall be evidenced by an amendment of the Declaration of Condominium that need be approved only by a majority of all Directors of the Association, nor shall the consent or joinder of any Owner or mortgagee be required for any such amendment.

25. TERMINATION. The Condominium may be terminated in accordance with Section 718.117, Florida Statutes, as amended.

26. RIGHTS AND OBLIGATION OF OWNERS.

26.1 Limitations on Right to Sue. Each Owner, his Tenants, Guests, other Occupants, and the Association shall be governed by and shall comply with the provisions of the Condominium Act and the Governing Documents. Actions for damages, for injunctive relief, or both, for failure to comply with these provisions may be brought by the Association or by an Owner against:

A. the Association;

B. an Owner;

C. any Tenant, Guest or other Occupant; or

D. any member of the Board of Directors who willfully and knowingly fails to comply with these provisions.

26.2 Waiver. A provision of the Condominium Act may not be waived by an Owner if the waiver would adversely affect the rights of the Association or other Owners or defeat the purpose of the provision, except if authorized by law that Owners or members of the Board of Directors may waive notice of specific meetings in writing as provided by the Bylaws. The failure of the Association or of a member to enforce any right, provision, covenant or condition which may be granted by the Condominium Documents shall not constitute a waiver of the right of the Association or Owner to enforce such right, provision, covenant or condition in the future.

26.3 Attorney’s Fees. In any legal proceeding arising out of an alleged failure of an Owner, Tenant, Guest or the Association to comply with the requirements of the Condominium Act or the Governing Documents, the prevailing party shall be entitled to recover the costs of the proceeding and such reasonable attorney’s fees as may be awarded by the court.

26.4 No Election of Remedies. All rights, remedies and privileges granted to the Association or Owner, pursuant to any terms, provisions, covenants or conditions of the Condominium Documents shall be deemed to be cumulative, and the exercise of any one or more shall not be deemed to constitute an election of remedies, nor shall it preclude the party from exercising such other additional rights, remedies, or privileges as may be granted by the Governing Documents, or at law or in equity.

26.5 Notice of Lien or Suit.

A. Notice of Lien. An Owner shall give to the Association written notice of every lien upon his Unit other than for permitted mortgages, taxes and special assessments, within five (5) days after the Owner receives actual notice of the attachment thereof.

B. Notice of Suit. An Owner shall give notice, in writing, to the Association of every suit or other proceeding which may affect the title to his Unit, such notice to be given five (5) days after the Owner receives actual knowledge thereof.

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C. Failure to Comply. Failure to comply with this Section will not affect the validity of any judicial suit; however, if such failure is a substantial contributing cause of damage or harm to the Association or other Owners, the Owner shall be liable to the injured party.

27. RIGHTS OF MORTGAGEES.

27.1 Approvals. Prior written approval of the record holder of a first mortgage lien on a Unit in the Condominium shall be required for any amendment to the Declaration which would decrease the percentage interests of the Unit in the ownership of the Common Elements, except otherwise provided and permitted under the Condominium Act.

27.2 Notice of Condemnation. In the event of condemnation, eminent domain proceedings, or very substantial damage to, or destruction of, any Unit or any part of the Common Elements, the record holder of any first mortgage on the Unit shall be entitled to notice of any termination of the Condominium.

28. AMENDMENT OF DECLARATION. Amendments to this Declaration shall be proposed and adopted in the following manner:

28.1 Proposal. Amendments to this Declaration may be proposed by the Board of Directors or by written petition signed by the Owners of one-fourth (1/4th) of the Units.

28.2 Governing Vote Required. Except as otherwise provided by law, this Declaration may be amended by approval of two-thirds (2/3rds) of the Voting Interests present, in person or by proxy, and voting at any annual or special meeting of the Members in accordance with law.

28.3 Certificate; Recording. A copy of each amendment shall be attached to a certificate that it was duly adopted as an amendment to the Declaration, which certificate shall be in the form required by law and shall be executed by officers of the Association. The amendment shall be effective when the certificate and copy of the amendment are recorded in the Public Records of Lee County, Florida.

28.4 Proviso. Any amendment which changes the configuration or size of any Unit in a material fashion, materially alters or modifies the appurtenances to the Unit, or changes the proportion or percentage by which the Owner of the Unit shares the Common Expenses and owns the Common Surplus, must be approved in writing and by the record Owners of the Unit and their institutional mortgagee. This proviso does not apply to changes caused by condemnation or a taking by eminent domain.

28.5 Enlargement of Common Elements. The Common Elements designated by the Declaration may be enlarged by an amendment to the Declaration. The amendment must describe the interest in the property and must submit the property to the terms of the Declaration. The amendment must be approved and executed as proved in the Condominium Act. The amendment divests the Association of title and vests title in the Owners without naming them and without further conveyance, in the same proportion as the undivided shares in the Common Elements that are appurtenant to each Unit.

28.6 Merger of Associations and Condominiums. It is intended that the Bayside Complex will contain several condominiums and other forms of residential development, each with its own Association, and with the Owners sharing certain Common Elements operated by the Bayside Master Association.

A. Property Merger. It is possible that the Owners will determine that it is in their best interest to merge some of all of the condominiums and other developments, if any, and the Common Elements in the Bayside Complex into one condominium, to be operated by one association, as contemplated by Section 718.110(7), Florida Statutes, as amended. Regardless of any provision in this Declaration to the contrary, this Declaration and any or all of its recorded exhibits may be amended in any way reasonably necessary to accomplish that purpose by the written consent of at

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least eighty percent (80%) of the Voting Interests of this Condominium and the approval of all record Owners of liens on the Condominium Property. No other approval, consent or joinder by any other person shall be necessary, provided that the amendments or new documents accomplishing the merger must:

(1) Protect and preserve the security and priority of all existing mortgages and liens, and the

rights of existing mortgagees and lienholders; and

(2) Make no material changes in the then-existing restrictions on the use, occupancy, leasing and transfer of ownership of Units; and

(3) To the greatest extent lawful, the share of Common Expenses and ownership of the Common Elements for each Unit after the merger shall be determined by the same formula as was used to determine those shares in each condominium being merged.

B. Corporate Merger. The Board may also determine that it is or may be in the best interest of the Owners in the Bayside Complex to consolidate or merge the Association with one or more other condominium or community associations in the Bayside Complex to form a single association, pursuant to Sections 617.1101 through 617.1107, Florida Statutes, as amended. This Declaration and all recorded exhibits may be amended in any manner directly related to accomplishing such a corporate merger by the affirmative vote of a majority of the Voting Interests of this Condominium, notwithstanding any provisions in the Governing Documents or Florida law that would otherwise mandate a higher vote requirement for amendments.

28.7 Correction of Errors. If there is any omission or error in this Declaration of Condominium or in other documents required by Florida law to establish the Condominium, the Association may correct the error or omission by following the procedures set forth in the Condominium Act.

29. MISCELLANEOUS

29.1 Severability . The invalidity in whole or in part of any covenant or restriction or any section, subsection, sentence, clause, phrase or word or other provision of this Declaration, the Bylaws, any Rules and Regulations of the Association, and any exhibit attached hereto, shall not affect the remaining portions thereof.

29.2 Construction. The provisions of this Declaration shall be liberally construed to effectuate the purposes of creating a uniform plan of condominium ownership.

29.3 Conflicts. If there is a conflict between any provision of this Declaration and the Condominium Act, the Condominium Act shall control. If there is a conflict between this Declaration and the Association’s Bylaws or Articles of Incorporation, the Declaration shall control.

29.4 Interpretation. The Board of Directors of the Association shall be responsible for interpreting the provisions of the Declaration and of any of the exhibits attached thereto. Such interpretation shall be binding upon all parties unless wholly unreasonable.

29.5 Exhibits. There is hereby incorporated within this Declaration any materials contained in the exhibits attached to the Original Declaration and all amendments thereto which under Condominium Act are required to be part of, or provided for in, the Declaration.

29.6 Notices. All notices required to be given under the provisions of this Declaration shall be addressed to the Association at its Property Management Office and to the Owners at the address of the Unit or the address of the Owner that appears on the current roster of Owners and/or any other known address of the Owner.

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29.7 Number and Gender. The use of the singular includes the plural and the use of the male includes female and neuter and vice versa in this document.

29.8 Captions. Captions of the sections and subsections of the Declaration are for the convenience of reference only and shall not limit or otherwise affect the terms thereof.

WATERSIDE I AT BAY BEACH CONDOMINIUM ASSOCIATION, INC.,a Florida not-for profit corporation

By: _________________________________

Title: ________________________________

Date: _______________________________

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