Schedule at the end of this Declaration] Prepared by and return to: Daniel P. Johnson, Esquire Young Conaway Stargatt & Taylor, LLP 110 W. Pine Street P.O. Box 594 Georgetown, DE 19947 REDDENWOOD DECLARATION OF RESTRICTIONS AND EASEMENTS TIDS DECLARATION OF RESTRICTIONS AND EASEMENTS (the "Declaration') is made as of this __ day of November, 2004, by SADDLE CREEK LLC, a Delaware limited liability company (hereinafter referred to as "Declarant"). WHEREAS, pursuant to the Deed recorded in the Office of the Recorder of'Deeds in and for Sussex County, Delaware (the "Recorder's Office") at Deed Book 2963, Page 8, Declarant is the owner ofthose certain lots, pieces or parcels ofJand, comprising of approximately 80.51 acres, more or less (the "Property''), being more particularly bounded and described on the Site Plan for Saddlecreek prepared by DC Group, dated May 28, 2003 and revised July 23, 2004, said plan being recorded on August 2, 2004 in the Recorder's Office at Plat Book 87, Page 29, as it may be amended from time to time (the "Plan"), which land is currently designated for the construction of a residential community consisting of seventy three (73) single family dwelling lots, which may be expanded to incorporated an additional (43) or more additional lots in the event adjacent lands are developed and incorporated into the community pursuant to an amendment to or supplement of the Plan or an additional site plan(s) (individually a "Lot" and collectively the "Lotsj, together with appurtenant "Common Facilities" as hereinafter defined; and WHEREAS, Declarant desires to control and restrict both the construction of original structures and improvements in the community to be known as "Reddenwood" as generally depicted on the Plan. as may be amended and expanded as well as any modification to the original residential dwellings and other improvements that shall be built in accordance with and subject to the terms and conditions of those certain Design Guidelines and Builder Specifications, as may be amended from time to time (the "Design Guidelines"), the tenns of which are more fully set forth in Schedule "A 11 attached hereto and made a part hereof, together with the use to which all dwellings, structures, and improvements in Redden wood are put so as to promote and facilitate the development of a healthful, safe, harmonious, attractive and valuable residential commwtity and for the preservation of the values and amenities in the community. Towards this end, Declarant desires to subject the Property to certain covenants, restrictions and agreements as hereinafter more particularly set forth, all of which Declarant deems to be for the benefit of the Property and each owner thereof; and WHEREAS, Declarant desires to impose ceitain restrictive covenants and deed restrictions, with (espect to the use of the Lots as well as certain affirmative obligations and duties with respect to Wl'3:1007910 5 the owners thereof which shall include, by way of illustration and not limitation. the storm water management facilities, community entrance improvements and street lighting. all of which shall be under the jurisdiction of and management by a maintenance corporation (the "Maintenance Corporation") which Declarant shall incorporate under the laws of the State ofDelaware prior to the transfer of title to the first Lot to an individual home owner to be known as "Rcddenwood Maintenance Corporation" for the purpose of exercising the functions set forth herein below and shall be a non-profit. non-stock corporation; and WHEREAS, Declarant desires to impose upon the Property, and to bind i t s l ~ its successors, and assigns, as owner of the Property, to certain covenants and deed restrictions respecting the development and use of the Lots and the improvements and structures thereon and certain maintenance aspects with respect to the Property as more fully set forth herein below; NOW THEREFORE, KNOW ALL MEN BY THESE PRESENTS, that for and in consideration of the premises and other good and valuable consideration, Declarant, intending hereby to establish a legally binding plan of restrictions and covenants on which prospective purchasers, Owners, mortgagees and other interested parties may rely, does hereby covenant and declare that henceforth it stands seized of the hereinbefore mentioned and described Property under and subject to the following covenants, restrictions, easements, obligations, conditions and agreements, which shall be covenants running with the lantL and which shall be binding upon Declarant, its successors and assigns, in title, occupants, visitors or users of Lots or streets and for the benefit of each Lot or parcel ofland as shown on the Plan and for the benefit of the Owners of such Lots. ARTICLE 1 DEFINITIONS The following definitions shall be applicable to the words defined as used herein: 1. "Common Facilities" shall mean and refer to those areas of land as and as shown on the Plan ofthe Property (as may be amended or supplement in cormection with any expansion of the Community as a result of any Supplemental Plans for the Phase n Property) as areas intended and devoted to the private and public common use and enjoyment of the Owners of the Lots and which are managed by the Maintenance Corporation in accordance with this Declanuion and the Certificate of Incorporation and Bylaws of the Maintenance Corporation. 2. ''Community" shall mean the residential development known as "Rcddenwood" as generally depicted on the Plan, currently consisting of seventy three (73) single family dwelling Lots (which may be expanded to include an additional forty-three or more ( 43) single family dwelling Lots in connection with the Phase II Property) and appwtenant Common Facilities. 3. The "Corporation'' shall mean and refer to the Reddenwood Maintenance Coiporation. a non-profit, non ..stock maintenance corporation incorporated under the laws of the State of Delaware, and its successors and assigns. 4. The "Declarant" shall mean and refer to Saddlecreek LLC, , a Delaware limited liability company, its respective successors and assigns as provided in this Declaration. WP):\0079105 2 0632.571001 S. "Lot" shall mean and refer to any one of the existing seventy-three (73) single family dwelling lots as shown on the Plan of the Property(together with an additional forty-three (43) or more additional dwelling lots that may be created or established as a result of an expansion of the Property by incotporating the PhaseD Property into the Community to become part of the Property pursuant to any Supplemental Plan for the Phase IT Property) for private individual residential use. but does not include or refer to any ofthe Common Facilities as contemplated under the Plan or any Supplement Plan. 6. The "Phase IT Property'' shall mean and refer to the lands edjacent to the Property consisting of approximately 53.39 acres, more or less, which may become incorporated into the Community and the Property as a result of one or more Supplemental Plan(s). 7. The "Property'' shall mean and refer to all properties, including the Lots and Common Facilities which are included in the Plan as referenced in Exhibit A, together with any Supplemental Plan(s). Upon the incorporation of the Phase li Property into the Community as a result of one or more Supplemental Plans, the Phase IT Property shall be considered part of the Property. 8. "Maintenance" and its various derivations shall mean general or special maintenance, repairs to and, if applicable, the replacement of storm water management facilities corrununity entrance improvements and street lighting located on the right-of-ways within the Community and not otherwise located on a Lot, and such other services and maintenance to be performed on the Lots by the Maintenance Corporation, from time to time, as determined by the affinnative vote of seventy-five percent (75%) of the Members. of the Maintenance Corporation in the fonn of a resolution adopted at any regular or special meeting of the Members voting in person or by proxy (the "Lot Maintenance"). /my such Lot Maintenance may be modified, reduced, expanded or eliminated, from time to time, by the affirmative vote of seventy-five percent (75%) of the Members of the Maintenance Corporation in the manner set forth above and in the By-Laws of the Maintenance Cotporation and without the need or requirement to amend this Declaration. 9. "Member" shall mean and refer to membCIS ofthe Maintenance Cozporation. 10. "Owner" shall mean and refer to the record title owner, whether one or more persons or entities, of fee simple title to any Lot, but shall not include a mortgagee who has not obtained fee simple title. 11. "Recorder's Office 11 shall mean the Office ofthe Recorder of Deeds, Sussex County, Delaware. 12. "Supplemental Plan(s)" shall mean any amendment or supplement to the Plan as well as any additional site plan or other subdivision plan of the Phase IT Property for the purpose of incorporating the Phase TI Property into the Community . ARTICLE2 THE MAINJ'ENANCE CORPORATION WPl:I007910 5 3 0(i32.S7-l001 1. In order that the Common Elements as set forth on the Plan shall be properly serviced and maintained as provided under this Declaration and in accordance with all applicable local, county, state and/or federal statutes, rules, regulations, ordinances or laws for the benefit of all the owners of the Lots, there shall be organized a nonprofit, non-stock Maintenance Corporation which shall be the Redden wood Maintenance Corporation. The Members of the Maintenance Corporation shall be all the Owners of the Lots as shown on the Plan. 2. The purchaser of any Lot by acceptance of a deed to the Lot from Declarant, agrees, obligates, and binds himself7hersel( his/her heirs, successors and assigns, to become a Member of the Maintenance Corporation and to be bound by all of its rules and regulations, and to be subject to all of the duties and obligations imposed by memberslrip in the Maintenance Corporation. 3. Each Owner of a Lot, by acceptance of a deed therefor from Declarant, is deemed to covenant and agree to pay to the Maintenance Corporation when due (a) annual assessments or charges to be assessed and paid in four ( 4) equal quarterly instalhnents or such other intervals as the Maintenance Corporation may detennine, from time to time, and (b) special assessments established and collected from time to time as hereinafter provided, such assessments to be fixed at a uniform rate for aU Lots. 4. Each Owner of a Lot further covenants and agrees, at the time of settlement on the purchase of any Lot to pay to the Maintenance Corporation his or her share of the costs associated with the Lot Maintenance. In addition, at the time of settlement on any Lot. the Maintenance CorporatioD. shall collect an initial one time start up assessment from the Owner towards the Lot Maintenance in an amount equal to one quarter (1/4) of the then current annual assessment based upon an approved budget as initially established by the Declarant and subsequently thereafter by the Maintenance Corporation (the "Start Up Assessment'} 5. The annual assessment shall be initially established by the Declarant and thereafter by a majority of the votes cast at the annual meeting of Members, and any special assessments, if necessary, shall be set by a majority of the votes cast at the annual meeting of Members or at a special meeting duly calJed fur such purpose. 6. The Maintenance Corporation shall have two {2} classes ofMembers; Class A and Class B Members. (a) Class A Members. Class A Members shall be all Owners excepting the Declarant and excepting any other person or entity which acquires title to all or a substantial portion of the Property for the purpose of developing thereon the Community. Class A Members shall be entitled to one (1) vote for each Lot in which they hold the interest required for membership. When more than one person holds such interest or interests in any Lot all such persons shall be Members, and the vote for such Lot shall be exercised as they among themselves determine, but in no event shall more than one vote be cast with respect to any such Lot (b) Class B Members. The Class B Member shall be the Declarant, its successors and assigns. The Class 8 membership shall be entitled to seventy-three (73) votes, together with additional votes which shall equal the total number of additional Lots created under the WP3:10079i0 S 4 Olill57 1001 Supplemental Plan for as long as Declarant owns one or more of the Lots; provided, however, that upon the happening of any of the following events, whichever first occurs, the Class B membership shall cease and be converted to Class A membership: (1) When the total votes outstanding in the Class A membership equal seventy-three (73), together with the additional number of votes representing all the Lots created under the Supplemental Plan, or (2) When, in its sole and absolute discretion, the Declarant elects to convert its Class B membership into Class A mcmbership(s). 7. Within one hundred twenty(l20) days after the tinrt of the fullowingevents to occur, the Declarant will call an organizational meeting of the Maintenance Corporation, if the same has not previously occurred. 8. Each Owner of any Lot by acceptance of the deed thereto shall be deemed to covenant and agree that the annual and special assessments, together with such interest thereon and cost of collection thereof including reasonable attorney's fees which shall become a part ofthe assessment. shall be a charge on the Lot and shall be a continuing lien upon the Lot against which each such assessment is made. It is expressly agreed that the assessments referred to above shall be a lien or encumbrance on the Lot with respect to which said assessments are made and it is expressly stated that by acceptance of title to any of the Lots included in the Property, the Owner (not including mortgagee) from the time of acqUiring title thereto shall be held to have covenanted and agreed to pay said assessments to the Maintenance Corporation, including prior unpaid assessments. In addition, the Maintenance Corporation may, from time to time, establish a schedule of fines to be levied for the nonpayment of such assessments. Each such assessment, together with such fines and interest thereon and the costs and expenses of collection there (including, but not limited to reasonable attorneys fees) of shall also be the personal obligation of the person who was the Owner of such Lot at the time when the assessment fell due and shall remain his/her personal obligation and shall not pass to successors in title unless expressly assumed. It is expressly agreed that the assessments referred to above shall be a lien or encumbrance on the land with respect to which said assessments are made and it is expressly stated that by acceptance of title to any of the Lots included in the Property the Owner from the time of acquiring title thereto shall be held to have covenanted and agreed to pay said assessments to the Maintenance Corporation. By his/her acceptance of title, each Owner shall be held to vest in the Maintenance Corpotation the right and power in its own name, to take and prosecute all actions or suits, legal, equitable, or otherwise, which may be, in the opinion of the Maintenance Cotporation, necessary or advisable for the collection of such assessments, and shall be held to agree that no Owner may waive or otherwise avoid liability for the assessments herein provided for the non-use of his/her Lot or abandorunent of his/her Lot. If any assessment is not paid when due, after the due date, it shall be deemed delinquent, and if not paid within thirty (30) days after the due date, shaH bear interest at the legal rate of interest. 9. The assessments levied by the Maintenance Corporation shall be used exclusively for the purpose of maintaining the Common Facilities, any Lot Maintenance approved by seventy-five percent (75%) of the Owners, and any other allowable purpose as stated in the Bylaws of the Maintenance Corporation. WPJ,I007910 S s 063257 1001 10. The lien of all assessments hereunder shall be subordinate in lien to the lien of any mortgage or mortgages on any property which is subject to such charges regardless of when said mortgage or mortgages were created or when such charges accrued; provided that such subordination shall apply only to charges that shall have become payable p1ior to the passing of title WJ.der foreclosure of such mortgage or mortgages, and the transferees shall not be liable forpa}'1llent of any assessment accruing prior to said foreclosure, but nothing herein shall be held to affect the rights herein given to enforce the collection of such charges accruing after sale under foreclosure of such mortgage or mortgages; and provided, further, that such charges accruing after sale shall also be subordinate in lien to the lien of any further mortgage or mortgages which are placed on property subject to such charges, with the intent that no such charges shall at any time be prior in lien of any mortgage or mortgages whatsoever on such property. II. The annual assessments provided for herein shall be paid in four (4) equal quarterly installments or such other intervals as the Maintenance Corporation may determine, from time to time, and shall commence on the conveyance of the first Lot to an Owner by the Declarant and shall be due and payable in advance on the first day of each such quarter thereafter. 12. The Maintenance Corporation shall keep an Assessment Lien Docket (the "Docket") at the registered office oft he Maintenance Corporation, which. at the date of recording hereof, is at c/o Reddenwood Maintenance Corporation. 4101 Highway One, Rehoboth Beach, Delaware 19971. Immediately upon an assessment becoming delinquent as hereinabove provided, the Treasurer of the Maintenance Corporation shall cause an entry thercofio be made in the Docket, which entry shall disclose the date the entry is made, the names ofthe Owners of the Lot as shown in the Maintenance Corporation's records, the number of the Lot, the amowtt of the delinquent assessment, the due date and the assessment period of the delinquent assessment. Upon written inquiry of any Owner or any attorney-at-law who certifies to the Maintenance Cotporation that he represents either an Ownerofa Lot or a prospective purchaser thereof, the Treasurer, upon receipt of a reasonable service charge (as established by the Maintenance Corporation from time to time), shall certify to the inquiring Owner or attorney-at-law as to the assessment status of the Lot which is the subject of the inquiry, stating: (a) Whether the current assessment is paid; and/or (b) Ifthere are any delinquent assessments or fines, all of the information entered in the Docket with respect to the Lot which is the subject of the inquiry, together with the per diem interest thereon. to be computed on each delinquent assessment from its respective due date to the date of receipt by the Maintenance Corporation of payment thereof in full. Upon receipt by the Maintenance Corporation of payment of any delinquent assessment, with interest and costs, if applicable, as herein above provided, the Treasurer shall enter in the Docket the date and amount of the payment received, together with the notation "Paid in Full." 12. In the event any Owner fails or neglects to promptly pay in full, when due, any and all installments of any annual or special assessments, then, in addition to any other rights and remedies available to the Maintenance Corporation as provided herein, or at law or in equity, the Maintenance Corporation shall have the right. (but not the obligation or duty) to discontinue all or a portion of the Maintenance or Additional Maintenance, as applicable, that is provided to any such WP3:10079l0, 6 06J257!001 Owner by the Maintenance Corporation (without being liable to the Owner or any third party for any such discontinuance of Maintenance) until such time as full payment (including any other fines, costs, fees and other charges that may be assessed under this Declaration in connection with delinquent payments} is received as provided herein above. ARTICLEJ RESERVATION AND ESTABLISHMENT OF ACCESS RIGHTS FOR MAINTENANCE Declarant for itself and for benefit o.f the Maintenance Corporation, together with their respective successors and assigns, expressly grants and reserves nonexclusive and porpetual easements and on, through. under, over and across the Lots, for the limited purposes of providing ingress, egress and regress to the Lots as may be reasonably required or necessary to perform and conduct the Maintenance and Additional Maintenance, as applicable. In consideration of the grant of the foregoing rights, the Maintenance Corporation, by the exercise of the easement and other rights granted and reserved hereunder, shall be deemed to covenant and agree that: 1. The Maintenance and Additional Maintenance shall be conducted in such a manner so as not to unreasonably interfere with or restrict the use of any Lot by the Owner of any Lot, including the Lot Owner's respective agents, tenants, invitees, licensees, guests; 2. The Maintenance and the Additional Maintenance shall be performed and conducted in such a manner as to minimize the extent, degree and scope of any disturbanCe of or damage to the Lots; 3. The Maintenance Corporation shall promptly correct and remedy any damages, nuisances or wastes arising from or associated with the Maintenance and the Additional Maintenance and to promptly restore any areas of the Lots disturbed or damaged by the Maintenance and the Additional Maintenance to the condition (to the extent reasonably practicable} which existed prior thereto; and 4. Its contractors, subcontractors, agents, employees, representatives or other third parties under the control or authorization of the Maintenance Corporation shall not store any vehicles, equipment, materials, supplies, debris or other items on any of the Lots in connection with the Maintenance or Additional Maintenance, except as maybe reasonably required and subject to the individual Lot owner's prior written consent 2 which consent shall not be unreasonably withheld, conditioned or delayed. The Maintenance Corporation is expressly authorized and permitted to make such reasonable rules, procedures and regulations regarding the performance ofthe Maintenance and Additional Maintenance as in its discretion will be for the mutual benefit of all of the Owners and which shall promote the safe. efficient and economical performance and completion of the Maintenance and the Additional Maintenance. ARTICLE4 USE OF THE PROPERTY 1. Single Familv Residences Onlv. All Lots shall be used solely for private, single WP3:1001910 S 7 0632H 1001 filmily residential purposes, unless otherwise hereinafter expressly provided. No buildings, sbuctures or any other improvements shall be constructed, placed or maintained on any Lot except single family residential dwellings and detached garages, as approved and built in accordance with the Design Guidelines and as otherwise expressly authorized and permitted under this Declaration, including, but not limited to any outbuildings, recreational facilities, greenhouses, tool sheds and aboveground pools. Except as otherwise expressly provided for under this Declaration, no more than one such dwelling and permitted accessory structures shaH be constructed, placed or maintained on each Lot, and the dwelling on each Lot shaU be occupied by no more than one fB.mily. No trailer, travel trailer, mobile home, tent, shack, garage or other outbuilding, temporary or semi permanent or permanent structure, improvement or shelter of any kind other than the dwelling house shall be erected, or shall be placed or utilized as a residence either temporarily or pennanently, on any Lot or the Property, except for those structures and improvements erected by the Declarant The foregoing provisions shall not, however, p1ohibit the placement on any Lot oftemporary construction trailers, sheds, portable toilets or other temporary construction related facilities during construction, maintenance, repair of, or addition to, buildings, structures or any other improvements on the Lots as permitted under this Declaration. 2. Business and Institutional Use Prohibited. No trade, business or profession shall be regularly conducted or pursued on any Lot or within or without any dwelling or structure constructed on the Lots or the Common Faci!ities nor shall any structure., vehicle or equipment be constructed, placed maintained or operated, temporarily or permanently, on any Lot or the Common Facilities for any trade, business, manufacturing, drilling, mining or other commercial, institutional or charitable purpose, except as Declarant may deem'necessary or advisable from time-to-time in colUlection with' the construction, maintenance or repair of any street, access area, single family residence or other dwellings, structures and improvements on the Lots and the Common Facilities. This prohibition shall not, however, prohibit Declarant from maintaining a temporary office or storage trailer(s) on any Lot or Lots or Common Facilities as a field and/or sales office or for temporary storage during the construction and development of the Community and the improvements therein, or prevent Declarant from erecting on any Lot or Lots a sample or speculation bouse or houses for exhibition and/or sale to the public or prohibit Declarant or any Owner from selling or renting any single fiunily residence thereon for occupancy by a single family, and for such purposes members of the public may rightfully be invited to, and may, inspect such houses and residences. (a) In addition, this prohibition shall not extend to the use of any lot in connection with any home occupation or daycare operation to the extent expressly authorized or permitted under the applicable provisions of the Sussex County Zoning Ordinances, as amended from time to time. 3. Limitations ou Animals. Except for dogs, small domestic cats and other small animals., normally kept indoors and commonly recognized as pets, not to exceed four ( 4) such pets kept on any Lot, there shall be no animals permitted or kept on any Lot or portion thereof, whether manunal, bird, reptile or insect, without the Declarant's prior written consent, which consent, if given, may at anytime thereafter be withdrawn upon thirty(30) days' written notice to the Owner or occupant keeping such pet, in the event Declarant reasonably determines that the continued presence of such pet in the Community possess a threat to the safety and well being of either the Owners of the Lots or the other pets of such Owners which are expressly pemtitted under the provisions of this WP3:1007910' 8 063257 1001 Paragraph. Notwithstanding the previous provisions, no pit bulls or any mix breed of pit bull, shall be permitted on any Lot at any time. No pet house, pen, cage, run or other structure or improvement made or intended for any pet {collectively the "Pet Structures") shall be constructed, placed, maintained or used on any Lot or street within the Conununity except that underground or .. invisible" fencing may be permitted; provided, however, Pet Structures may be pennitted in the rear yard of any Lot subject to the written application of the Lot Owner to the ROC (as defined below) and in accordance with the provisions of Article 5 below. The RDC may impose reasonable connection with any approval of Pet Structures as to design, location and size, consistent with the intent and purpose ofthe Design Guidelines. In no event shall livestock, poultry, fowl Ol' horses be kept on any Lot or portion thereo4 nor shall any animals be bred or buried upon any Lot or within any dwelling in the Community or the Common Facilities. Dogs, cats and other ambulatory pets shall be leashed at all times while not on the Lots of their Owners. No dog, car or other animal shall be permitted to relieve itself on any shrub, patio, building, fence, car or other items of personal property belonging to neighboring Owners. Any solid waste left on any Common Facilities or Lots shall be promptly placed in a bag or other suitable receptacle and properly disposed of by the responsible Owner of such pet. Every pet owner shall take all reasonable steps to prevent the noise, waste or odors ofhis or her pet from annoying other Owners. Owners shall be strictly liable for the actions of their pets. The Declarant shall have the right to require that any habitually diseased, infested, unclean or noisy animal, bird, reptile, fish or insect be removed from the Community. 4. Nuisances Prohibited. No nuisance, or noxious activity shall be permitted, or conducted on or about any Lot or the Common Facilities, including but not limited to, unlawful or uhusual quantities of explosives, open fire or smoke, fresh rrianure and uncovered refuse. (a) No noise-producing activities, including but not limited to the operation of machinery, such as lawn mowing equipment, chain saws, construction equipment, and similar devices, shall be permitted prior to 7:00a.m. on weekdays and 8:00am. on weekends and holidays, nor to continue past 7:00 p.m. on weekdays and 6:00 p.m. on weekends and holidays. (b) Septic fields shall be used, cleaned out and maintained so as to prevent unpleasant odors or unsanitary conditions from occuning on or above the surface of any Lot. (c) Garbage, rubbish or any other material of any nature to be abandoned or disposed of shall not be placed or allowed to remain on any Lot nor shall it be placed, left or allowed to fall upon any portion ofthe Property, but if placed outside the dwelling shall be placed in closed garbage receptacles of permanent (mobile) construction intended for such purpose and may be placed at street side on the day of collection if required by the collecting agency All garbage, trash and other refuse shall be kept in tight, enclosed containers with lids, adequately camouflaged and kept from public view and removed from the Lots at reasonably frequent intervals. Such trash receptacles shall be kept in clean, sanitary and enclosed areas, hidden from view, excepting that they may be placed temporarily at street/curb side on the regular day of collection or after 5:00p.m. on the day immediately prior to the day of collection if required by the collection agency. Each Owner shall take all reasonable steps to prevent his or her garbage and refuse from omitting odors which would reasonably annoy any other Owner. WP3:1007910 S 9 063257 1001 (d) No fires shall be caused or permitted on the grounds of any Lot or the Common Facilities, except for the lighting of gas or charcoal in an elevated, safe, enclosed grill used on a patio or other area designated by the Declarant, if any and movable or flXed outdoor fire devices as approved by the Committee. 5. Limitations on Vebicles. No mobile homes, motor homes, campers, trailers, airplanes, helicopters, boats, snow mobiles, motorcycles, three {3) or four (4) wheel"all terrain" vehicles, dune buggies. commercial vans, commercial trucks or other commercial or specialized recreational vehicles shall be maintained upon or brought upon any Lot, or parked on any street except for such time as is necessary to clean. load or unload such or pick up or discharge passengers therefrom provided, however, that such vehicles may be kept on such Lots ifkept in an enclosed garage. No inoperable, unregistered or expired registration, or unlicensed vehicle shall be parked outside of any dwelling or street for more than forty eight (48) hours. This restriction shall not apply to construction or sezvice vehicles parked on any street or Lot by a third-party or by Declarant in order to conduct business or perform services at the invitation of a Owner. All motor vehicles owned and operated by Owners and their guests, licensees and/or invitees must be parked in the garage or the driveway located on the Owner's Lot or the adjacent street if such parking is temporary parking. No such vehicle may be parked elsewhere on any Lot, or on the streets, except for temporazy parking. For purposes of this paragraph, "temporary parking" shall mean the parking of such motor vehicles on an intermittent and non-recurring basis during the period between dawn and the following midnight 6. Protrusioos. No Owner shall cause or permit any rug,.Iawldry, aerial, fan, air-conditioner, wire or other object to hang or protrude from any window or door. No rugs shall be hung. draped or beaten on patios. balconies, railings or any exterior portion of a dwelling or outdoor living areas of any Lot, nor shall dust, rubbish or litter be shaken, swept or thrown from any window, door, patio, balcony or outdoor living area. No laundry shall be aired, hwtg. draped or otherwise displayed from any patios, balconies, railings or any exterior portion of a dwelling or outdoor living areas of any Lot or on the Common Facilities. Laundry lines and poles outside houses are prohibited. The foregoing shall not prohibit the display of customary holiday decorations, subject to such specific limitations on type, manner of display and duration as the Committee may from time to time fix and determine. 7. Compliance with Laws. No building or other structure or improvement (collectively the "Improvements") shall be placed or maintained on any Lot nearer to any front, side or rear property line than is permissible without a variance from Sussex County pursuant to the Zoning Code or Ordinances of Sussex County. Delaware, as amended, or nearer than as permitted by the Corrunittee in accordance with the provisions of the Design Guidelines, whichever is greater in distance from said property line. In addition. all Improvement shall be subject to Lot coverage, buffer setbacks, and open space requirements as set forth n the Design Guidelines. All structures, including mailboxes, basketball goals, rocks, and landscaping (including trees), shall be prohibited within any street way right-of way. All construction, including any and all Improvements to the Lot and all parts and phases thereof including, without being limited to. electrical work and plumbing, shall be designed, performed and completed in a timely and good workman-like manner and in compliance with the Design Guidelines as well as all applicable Federal, State, County and Municipal statutes. laws. ordinances. regulations, orders and directives or other governmental WP3:1007910 10 iOOI enactments, including but not limited to subdivision, zoning, building. health and drainage codes as well as those laws, ordinances and regulations which regulate health, safety and the enviromnent including environmental regulations (the "Laws") and shall be subject to inspection and approval by properly authorized inspectors and authorities and the Committee, as applicable. Notwithstanding the restrictions herein contained, no permitted use or restriction or other provision shall be in conflict with or contrary to the intent, purpose and provision of any zoning ordinance in effect. Where these restrictions are more restrictive than the provisions of any such zoning ordinance, these restrictions shall be deemed to prevail. 8. Lawos, Gardens and Signs. All lawns and plantings shall be regularly mowed and trimmed by the Owners on which they are located so as to present a reasonably neat and cared-for appearance. None of the foregoing shall prevent Owners from creating and maintaining vegetable and/or flower gardens on their Lots for their own use (as opposed to sale for profit), provided any such vegetable gardens are located in the rear yard of any Lot No signs or advertisement or notice shall be placed, erected or maintained on any Lot other than small signs indicating Owner's name and the Lot street number. No statues, bird baths or other objects be placed in the front yards of any Lot without prior written consent of the Committee. No temporary or permanent clothes line or similar structures or improvements shall be permitted. In addition, aU lawns and plantings ofLots on which construction has not yet started shall be regularly mowed, trimmed and maintained in accordance with these Restrictions and the applicable provisions ofthe Sussex County Code with regard to maintenance of vacant Lots. 9. Easements and Rights-of. Wav. Perpetual easements for the installation and maintenance of electric, sewer (if available at some future time), water. telephone, cable (including but not limited to telecommunication lines), gas and drainage facilities for the benefit of the Lots and the Owners thereof or public or private utility companies ultimately operating such facilities are reserved as shown on the Plan or as otherwise provided in this Declaration. No building, structW'e or improvement of any kind shall be erected within the easement areas occupied by such facilities. Owners who utilize any of the reserved easements for the improvement and maintenance of their Lots shall be liable for any damages caused to any easement areas located on their respective Lot. All conveyances of Lots by Declarant or others shall be subject to such easements and rights of way without necessity of any further reservation being mentioned therein. (a) Easements and right-of-ways are hereby reserved on, over, under and along all of the Lots in the Property, for wires, conduits, and pipes for lighting. heating. gas, electricity, telephone, and any other public or quasi-public utility service purpose, for drainage, and for sewers and pipes of various kinds, aU of which shall be confined, as practicable, six (6) feet from the side and rear property lines of each Lot, such utilities to be constructed undergrowtd, together with the right of access thereto for the pwpose of further construction and/or repair or as otherwise expressly provided by the Plan. A ten (10) foot wide easement shall be established along interior rights of way created by the Plan. unless otherwise specified on the Plan. No building or other permanent structure shall be erected or maintained on any part of any area herein reserved as an easement and/or right-of- way. (b) Notwithstanding any provision of this Declaration or of any amendment to this declaration. so long as the Declarant or successor to or assign ofDeclarant is engaged in developing WP3:t0079l0 3 II 0632S7100t or improving any portion of the Property, Declarant or its designees shall have an unlimited easement of ingress, egress, and use over any portion of the Property not conveyed to an individual Owner for occupancy for (I) movement and storage of building materials and equipment; (2) erection and maintenance of directional and promotional signs; and (3) conduct of sales activities, including maintenance of any office or model homes. 10. Additional Restrictiops. In addition to the other use restrictions set forth above, the following additional restrictions shall apply to the Lots and the Owners thereof: (a) No radio (including ham radio), television or communications tower, dish or other reception or signal sending device shall be erected or placed on any Lot or Common Facilities or be attached to the exterior or any dwelling, structure, or improvement, including, but not limited to any dwelling roof, except to the extent expressly authorized and pennitted by any applicable Federal statute, ordinance or regulation, nor may any device, apparatus or decoration be permanently or temporarily attached to the exterior of the dwelling, structure, or improvement without prior written approval by the Committee, which shall not be unreasonablywithheld conditional or delayed Qualified antecnas must be erected within attics or garages. unJess such placement impedes reception in which event such antenna maybe erected in another location on the Lot provided that it is of a reasonable height so as not to be readily visable to surrounding Lot owners and is adequately screened by landscaping or other material where reasonable and in accordance with any reasonable conditions imposed by the Committee, In addition. qualified dishes shall be erected or placed on dwellings, structures or improvements on a Lot so as not to be readily visible from the street adjacent to the Lot. ' (b) No Lot in the Community shall be further divided or subdivided in any manner. This restriction shall not prevent conveyance of property between adjacent Owners to correct or to change common boundaries, so long as the resulting acreages and separate ownerships are not substantially changed and otherwise comply with all applicable laws and this Declaration. The Committee shall have the right in its absolute and sole but good faith discretion to prohibit any such subdivision altogether if in the Committee's reasonable opinion and judgment the proposed subdivision will have a detrimental effect on the Community. (c) It shall be the duty of each Owner of a Lot abutting the Community to be responsible for proper seeding, care and maintenance of the land lying between the portion of that Owner's property line which abuts such rights of way and the street itself. In performing this duty, the Owner shall not obstruct or make any use of such area which is detrimental to or inconsistent with the proper use of the right of way. (d) Notwithstanding anything contained herein to the contrary, all aboveground poo]s are expressly prohibited and shaH not be used or maintained on any Lot or in the Community. (e) All on-Lot lighting shall be designed and mounted in accordance with the terms of the Design Guidelines and as otherwise provided under this Declaration. Any such lighting shall be generally directed in such a manner to enhance the immediate area aroWld any dwelling on a Lot and shall not be directed toward other dwellings on adjacent Lots or properties surrounding the Community, so as to be a nuisance to adjacent Owners or landowners outside of the Conununity. WPl:\007910 S 12 0632371001 (f) All mail delivery will be taken at mail boxes located in an area dedicated to that purpose or as required by the United States Postal Service or other governmental agency or authority. The, location, style and type and color of all mailboxes shall be initially determined by the Declarant and thereafter shall be subject to the approval of the Committee. (g) No Owner shall play OI' allow to be played any musical instrument, radio, television, phonograph, sound movie projector, tape recorder or like device, or shall practice singing or vocal exercises, or shall use any tool or engage in any noisy activity, earlier in the morning than eight o'clock am. Monday through Saturday, and eleven o'clock a.m. Sunday, or later in the evening than eleven o'clock p.m. Sunday through Thursday, and twelve o'clock midnight Friday and Saturday, or for longer(except for electronic equipment) than three (3) hours in any given day, if the same shall disturb and annoy any other Owners. No Owner shall engage in any altercation at any time or otherwise shout, yell, or disturb the peace if the same shall annoy and disturb, any other Owners. Television, radio and other electrical devices subject to volume control shall not be played above moderate levels if any Owner objects, regardless oftime of day. 11. Reservation of Rights of Declarant. Notwithstanding anything contained in this Declaration to the contrary, Declarant, and its successors and assigns, in order to undertake and complete certain site development work and improvements within the Community (excluding an construction or development on the individual Lots) so that such work may be completed and the subdivision established as a fully occupied residential community as soon as possible, nothing in this Declaration shall be understood or construed to: (a) prevent the Declarant, Declarant's transferees, or the employees, contractors, or subcontractors of the Declarant or Declarant's transferees, from doing on any part or parts of the Property owned or controlled by the Declarant or Declarant's transferees, or their representatives, whatever they determine may be reasonably necessary or advisable in connection with the completion of such work; (b) prevent the Declarant, Declarant's transferees, or the employees, contractot:s, or subcontractors ofthe Declarant or Declarant's transferees, from constructing and maintaining on any part or parts of the Property owned or controlled by the Declarant, Declarant's transferees, or their representatives, such dwellings, structures, or improvements as may be reasonably necessary for the completion of such work, and the establishment ofReddenwood as a residential community and the disposition of the Lots by sale, lease or otherwise; (c) prevent the Declarant, Declarant's transferees, or the employees, contractors, or subcontractors or the Declarant or Declarant's transferees, from conducting on any part or parts of Property owned or controlled by the Declarant or Declarant's transferees or their representatives, the business of completing such work and establishing the Property as a residential community and of disposing of Lots by sale, lease or otherwise, or (d) prevent the Declarant, Declarant's transferees, or the employees, contractors, or subcontractors of the Declarant or Declarant's transferees, from maintaining such sign or signs on WP3:1007910 S 13 0632S1 1001 any part or parts of the Property owned or controlled by them as may be necessary in connection with the subdivision, sale, lease or other disposition of Lots. (e) As used in this section the words "its transferees" specifically exclude purchasers ofLots improved with completed residences. The "part or parts of Property owned or controlled" shall include the Corrunon Facilities. ARTICLES REDDENWOOD DESIGN COMMITTEE AND GENERAL ARCIDTECTURAL DESIGN STANDARDS, REVIEW AND CONTROL 1. General Provisions. In order to encourage harmonious architectural design and to protect the visual integrity, architectural spirit and longterm property values of the Lots and Improvements thereon in Reddenwood, the Declarant has established the Design Guidelines. No dwelling, structure, improvement, landscaping or other man-made object, including, but not limited to buildings, tennis courts, basketball courts, children's recreation equipment or other recreational or sporting facilities, decks, patios, porches, pool houses, below ground swimming pools, greenhouses, tool sheds, ponds, gardens, driveways, paved areas, satellite dishes, radio antennas, communications equipment or facilities, fences, walls, together with all forms or types oflandscaping (collectively the "Lot hnprovements") shall be designed, constructed, maintained, altered, extended, added to, removed or otherwise modified without the eXpressly written consent and approval of the Redden wood Design Committee (the "RDC 11 ). In addition, no Lot Improvements, once approved by the RDC shall be altered, extended, added to, removed or otherwise modified, nor shall any additional structures of any nature be erected, used or maintained nor shall any exterior change or alteration be made (including, but not limited to, exteriorfacadecolorchanges or change in grade or drainage) to the Lot Improvements except in accordance with the Design Guidelines and this Declaration, as applicable. Notwithstanding anything contained herein to the contrary, any Lot Improvements marketed or sold by Schell Brothers, LLC or its assignees shall be deemed to have complied with the Guidelines and are presumed to have been by the Declarant and the RDC, without the need or obligation to obtain any approvals or authorizations from either the Declarant or the RDC (the "Pre-Approval"). 2. The Reddenwood Design Committee. The Declarant has established the RDC which shall consist of a minimum of three (3) members up to a maximum offive (5) members. The Declarant shall appoint an initial three (3) members during the first three (3) years that the RDC is in existence. Thereafter, the RDC shall consist of five ( 5) members of whom the Declarant shall appoint three (3) members and the Maintenance Corporation shall elect two {2) members. Members may be either individuals or any fonn of entity, including, but not limited to a corporation, limited liability company, a partnership or a trust, provided all such Members shall be either an Owner, a designee of the Declarant, or an architect licensed in the State of Delaware (individually a "Member'' and collectively the "Members"). The regular tenn of office for each Member shall be one ( 1) year, measured from the date of such Member's appointment and/or election. Declarant may remove with or without cause any Member appointed by the Declarant at any time by written notice to such appointee. A successor or successors appointed to fill such a vacancy shall serve the remainder of WPH007910' 14 0632371001 the term of the former Member. Any Member elected by the Maintenance Corporation may be removed only in accordance with the By-Laws of the Maintenance Corporation. The RDC shall select its own Chairman and he/she, or in his/her absence the Vice Chairman, shall be presiding officer at its meetings.. The ROC shall meet at least once in each calendar month ifthere are matters to be reviewed or upon call of the Chairman when ever he/she deems necessary in order to discharge its obligations and responsibilities hereunder, including rendering any decisions specified in this Declaration or the Design Guidelines. All meetings shall be held at the offices ofthe Declarant or at such other places as may be designated by the Chairman. A simple majority of the Members shall constitute a quorum for the transaction of business, provided a minimum of two (2) Members appointed by the Declarant must be present in order to have a quorum. The affirmative vote of a majority of the Members of the ROC shall constitute the action of the RDC on any matter before it. The RDC shall operate in accordance with its own rules of procedure, and these rules shall be filed with the Maintenance Corporation. The RDC shall be authorized {but not obligated) to retain the services of consulting architects,landscape architects, community planners and/or attorneys to advise and assist the RDC in perfonning the design review functions herein prescribed. Any such professional must be licensed to practice its profession in the State of Delaware. The RDC shall keep accurate records of its membership and actions and shall from time to time, as warranted, notify all Owners of any change in the membership of the RDC as a result of resignations and replacements of Members. The RDC may establish its own rules for the conduct of its meetings and its decision making process which shall which shall be adopted, promulgated, applied and enforced in a unifonn and non-discriminatory manner among the Owners. 3. Criteria For Submission, Review and Decision on Ph:ins. (a) Any request from a Owner for any Lot Improvements shall be in writing and shall be submitted to the RDC in accordance with and pursuant to the Design Guidelines and Procedw-es set forth in Schedule "A", as may be amended by the RDC from time to time. (b) In passing upon any plans and specifications submitted by an Owner, the RDC, in accordance with the provisions of this Declaration and the Design Guidelines and Procedures, shall consider the aesthetic suitability and harmony of the Lot Improvements to be constructed, to and with the Lot on which it is proposed to be located; the comparability of the height, profile and color scheme with neighboring residences whether same be existent, under construction, or approved for construction; the impact of the item to be constructed on the environment, including without being limited to presexvation of trees and open spaces, and surface water drainage, the effect of the proposed Lot Improvement or other item, and its planned usage and purpose, on the outlook of neighboring Lots and/or residences; and the quality of the materials to be used in construction and the proposed method of construction including but not limited to the effect of lighting and signage upon neighboring Lots and/or residences. The terms "aesthetic suitability and harmony'' shall be interpreted to encourage the useoftraditional architecture and materials set forth in Schedule 11 A". No exterior colors or materials installed or approved by the RDC shall be changed through replacement. repair, redecoration, repainting or otherwise, except upon prior submission to and approval by the RDC, which approval may be withheld in the RDC's reasonable discretion. With respect to Lot Improvements such as, but not limited to, driveways and turnarounds, fences, walls. recreational facilities, barbeques and patios, the RDC shall have the right in its absolute and sole but good faith discretion to prohibit such Lot hnprovements altogether if in the WPJ:I007910 S 15 6 3 2 ~ 7 1 1 opinion of the RDC the construction and use of such Lot Improvements will necessitate the removal of valuable trees, cause drainage problems, or have a detrimental effect on the outlook from or use of neighboring Lots. (c) In the event that repair, replacement or other work on Lot Improvements becomes necessary, or the erection of any additional structures is necessary, then any such work shall, to the extent practicable, be perfonned so that the condition and appearance is equal to and identical to the condition and appearance of the dwelling, building. structure or improvement as originally constructed, or with respect to additional structures, the construction and appearance is in architectural hannony with the Lot Improvements as originally built and developed under this Declaration. (d). The RDC reselVes the right to approve in advance proposed architects, builders and landscape designers. (e) Review Fee. Except for Lot Improvements to be constructed by Declarant or its preferred builder, Schell Brothers Builders, any application to the RDC for review shail be accompanied by a reasonable application tee (as determined and published to the Owners from time to time by the RDC) to defray the cost of professional services that the RDC may reasonably incur to properly evaluate an Owner's Plans and Specifications (the "Review Fee"). The RDC may waive the Review Fee on a case by case basis if the application for any such Lot Improvements does not require the RDC to incur any professional fees or services in connection with its review and evaluation of the Plans and Specifications. The Review Fee shall be non-refundable unless the applicant withdraws its application prior to the RDC incwring any professional fees or expenses in connection with its review and evaluation ofthe application. All Plans and Specifications submitted to the RDC shall be retained by the RDC and shall not be returned to the applicant, unless the RDC elects to do so. (f) Review and Decision Process. Within thirty (30) days after the Owner has submitted all the required Plans and Specifications to the RDC, the RDC shall notify the Owner in writing whether such Plans and Specifications are either approved or disapproved. Any disapproval or objections shatl be in writing and shall be detailed and shall include an explanation for the basis or reason for such disapproval or objections, together with such reasonable changes, modification or other alterations and recommendations as appropriate or practicable that would render the Plans and Specifications acceptable to the RDC and in compliance with the review and approval criteria established under this Declaration. In the event Declarant fails to approve or disapprove an Owner's submission of the Plans and Specifications in writing within the said thirty (30) day period, then the RDC's approval shall be conclusively presumed to have been granted, provided, however that the aforesaid presumption shall not be deemed a waiver ofthe applicable provisions ofthis Declaration or be deemed to be the prior written approval of the RDC under any specific provision herein. No construction of the Lot hnprovements provided for in the submitted Plans and Specifications shall be commenced until the expiration of the aforementioned thirty (30) day period or the receipt of the RDC's written approval of the Plans and Specifications, whichever occurs first. (g) Time for Review of Revised Plans and Specifications. In the event the RDC shall disapprove any part of the Plans and Specifications as submitted in accordance with this WP3:10079105 16 6 3 2 ~ 7 1 1 Section, then the Owner shall have the opportunity to revise its Plans and Specifications to incorporate such changes, modifications, additions or deletions, as applicable. and shall resubmit the revised Plans and Specifications to the RDC. if the Owner so chooses. together with an additional Review Fee and the ROC shall have twenty (20) days within which to review such revised Plans and Specifications and to detemrine the Owner's compliance with the RDC's designated changes. In the event the RDC fails or neglects to advise the Owner in writing of whether or not such revised Plans and Specifications are in compliance (or non-compliance) within the twenty (20) day period, then Declarant's approval shall be conclusively presumed to have been granted subject to the conditions provided for in paragraph (f) above applicable to such presumption. Any disapproval by the RDC of such revised and resubmitted Plans and Specification shall be communicated to the Owner in a written response in accordance with the details required for the ROC's approval as provided in paragraph (f) above. (h) Cbanges in Approved Plans and Specifications. Once the RDC has approved an Owner's Plans and Specifications and the Lot Improvements. then the Owner shall not change, revise or otherwise modify the approved Plans and Specifications or the Lot Improvements without first securing the RDC's written approval in the manner prescribed under this Article. Declarant shall endeavor to review such changes, revisions or other modifications within a shorter period of time than the thirty (30) days provided above, but shall not be required to do so. (i) Approval for Landscaping Plans. Landscaping shall be approved by the RDC in the same manner as set forth above. In addition to all applicable foregoing guidelines no excavation shall be made, or fill, sand, gravel, crushed sione, brick, asphalt, concrete or the like be placed. set or poured on any Lot so as to cause any blatant and material change in the appearance of such Lot from the street or from any neighboring Lots, unless the RDC shall first have consented in writing. No fences, walls, hedges or other barriers shaH be erected on any Lot without the approval of the RDC, and no existing fences, hedges or barriers shall be removed without the approval of the RDC. G) Dispute Resolution Process. If any Owner believes that either the disapproval of any Plans and Specifications submitted by the Owner to the RDC or the RDC's proposed changes to such Plans and Specifications that may be required for the ROC's approval, or any of the Pre-Approvals are arbitrary and capricious, then any such Owner may, as its sole and exclusive remedy, submit to dispute to final and binding arbitration in accordance with the provisions of the Delaware Uniform Arbitration Act (the "Act") and the rules of the American Arbitration Association applicable to such disputes, to the extent such rules are not inconsistent with such Act. The fees of such arbitrator and all reasonable costs and expenses by the RDC in defending its decision(s) shall be paid by the Owner, unless the arbitrator specifically finds and rules that the RDC acted in an arbitrary, capricious and merit less manner, in which event the Owner shall not be required to reimburse the RDC fbr its reasonable costs and expenses. In determining any question, matter, or dispute before such arbitrator, the arbitrator shall apply the provisions of this Declaration without varying there from in any respect, and shall not have the power or authority to add, modify, or otherwise change any of the provisions of this Declaration. The parties to any such arbitration agree to reasonably cooperate, to obtain the cooperation of their employees, agents and contractors, as applicable; to use reasonable efforts to supply as witnesses such employees, agents and contactors, as applicable; and to produce any relevant documents that may be required. 17 WPJ;i0071ll0 (k) Approvals/Disapprovals. Neither the RDC, nor its agents. employees, representatives, and its successors and assigns shall be liable or responsible for any damages to any Owner or to any other person submitting Plans and Specifications to the RDC for approval or to any third party by reason of a mistake in Judgment, negligence or nonfeasance arising out of or in connection with the approval, disapproval, or failure to approve any Plans and Specifications. Every person who submits Plans and Specifications to the Declarant for approval, as provided herein, agrees. by submission of such Plans and Specifications, and every Owner ot person claiming by or through the Owner agrees, by acquiring title to any Lot or any interest in any Lot, that it shall not initiate, commence or prosecute any action, claim or suit against the RDC, its agents, employees or representatives to recover any such damages, including, but not limited to special, consequential or punitive damages with respect to any approval, denial or failure to approve any Plans and Specifications and such Owner shall indemnifY and hold theRDC harmless form and against any and all such damages. ARTICLE6 MISCELLANEOUS 1. Binding Covenants. All the covenants, agreements, conditions and restrictions set forth in this Declaration are intended to be and shall be construed as covenants running with the Property and the Lots, binding upon. inuring to the benefit of, and enforceable by Declarant and the Owners, and the Maintenance Corporation as specifically provided hereinabove, and aU subsequent Owners, and their 'respective legal representatives, heirs, successors and assigns. 2. Amendments. These covenants and restrictions maybe changed. altered. modified or extinguished in whole or in part, at any time, by either an instrument in writing signed and acknowledged by (a) the then Owners of two-thirds (213) of the Lots and with Declarant's written consent so long as Declarant still owns any of the Lots; or (b) by the Declarant, so long as it is the owner of at least one-half (1/2) of the Lots. without the joinder of any other Owner(s) of any Lots. Any such amendment instrument shall become effective when recorded in the Recorder's Office, Notwithstanding the foregoing. neither the Declarant nor the Owners shall modify or change the requirement that all Lots be used for single family residential purposes, unless such decision is made by all of the Owners. Declarant also resezves the right to waive or modify any requirement as to any individual Lot necessary to avoid hardship resulting from unintentional noncompliance with this Declaration. Jn addition, Declarant, so long as it is the owner of any Lots, shall also have the absolute right (but not the obligation) to amend this Declaration (without the joinder of any Owners) by executing and recording amendments in the Office aforesaid if such amendments are: (a) required by Federal, State, County or local statute, law, ordinance, rule or regulations; or (b) required by any mortgagee of improved Lots and dwelling houses in the Property; or (c) required by any title insurance company issuing title insurance to Owners and/or mortgagees of same; or WP3:10079105 18 06Jl571001 (d) required by the Federal Housing Administration, Department ofHousing and Urban Development, Veterans Administration, Farmers Home Administration, Delaware State Housing Authority, Federal National Mortgage Association, Federal Home Loan Mortgage Service Corporation, GN:MA or by any like public or private institution acquiring. guaranteeing or insuring mortgages or providing any type of :financial assistance with respect to dwelling units in the Property; or (e) required to correct errors or technical deficiencies or imperfections or to clarify ambiguities; or (f) required or necessary, in Declarant's reasonable judgment in order to incorporate the Phase II Property as part of the Community so as to be a part thereof and subject to the terms and provisions of this Declaration. 3. Notices. Any notice required to be sent to any Member or Owner under the provisions of the Declaration shaH be deemed to have been properly sent when mailed, postpaid, to the last known address of the person who appears as a Member or Owner on the records of the Maintenance Corporation at the time of such mailing. 4. Constructiop of Declaration. This Declaration shall be construed to effectuate its pwpose. under and in accordance with the laws of the State ofDelaware; but the invalidation of any part or portion hereof shall in no way affect or invalidate the remaining parts or portions, In no event' shall any provision be construed more strongly against or less strongly in favor ofDeclarant, as the author hereof; but it shall be regarded the same as, and in parity with, any other Owner. The singular and the plural, the masculine, feminine and neuter, and the tense of verbs shall be interchangeable as the context may require. The headings in this Declaration shall be deemed as neither adding to nor detracting from the contents and provisions hereof. 5. Enforcement/Remedies. Except as otherwise expresslyprovided in this Declaration to the contrary, in the event any Owner or their respective tenants and subtenants, agents, contractors, visitors, licensees, and invitees breaches any covenant or obligation or undertaking as provided in this Declaration and fails to remedy or rectifY such breach within ten (10) days after written notice from Decl8!1lnt, any Owner, or the Maintenance Corporation specifying the nature of the breach, and specifying the nature and corrective action required to remedy the breach, then the non-defaulting party shall be entitled to exercise any and all rights and remedies available at law or in equity, including but not limited to seeking monetary damages (but expressly excluding consequential, punitive or special damages), specific performance and/or injunctive relief; provided, however, in the event the non-performing party undertakes to cure. rectify or remedy any such breach within the such ten (10) day period and cannot reasonably complete the required corrective action within the required time frame, then the time to cure such breach shall be reasonably extended to enable the to complete the required cure as long as any such extension does not cause the non-defuulting party to incur directly or indirectly any civil or criminal penalty, fine, violation, citation or other adverse govenunental or third party action. Each right and remedy which the Declarant, any Owner or the Maintenance Corporation may have under this Declaration or by operation of law or in equity shall be distinct and separate from every other such right and remedy, WP3:1007910 5 19 063257 1001 -------- all such rights and remedies shall be cumulative to the extent allowed by applicable law, and unless specifically stated herein to the contrary none of them shall be deemed inconsistent with or exclusive of any other, whether or not exercised; and any two or more or all of such rights and remedies may be exercised at the same time or successively. Any costs, fees and expenses incurred by the prevailing party, including reasonable attorneys' fees, arising out of or relating to breaches and disputes under this Declaration will be paid by the nonprevailing party as determined by a court of competent jurisdiction. 5. Severabilitv. If any clause or provision of this Declaration is held to be illegal, invalid or unenforceable, then and in such event, it is the express intention of the parties hereto that the remainder of this Agreement shall not be affected thereby and each clause or provision of this Declaration other than those declared illegal, invalid or Wlenforceable shall be legal. valid and enforceable to the fullest extent permitted by law. 6. Geuder. All reference herein to the masculine shall be deemed to include the feminine or neuter genders, and vice versa, as appropriate. All reference herein to the singular shall be deemed to include the plural, and vice versa, as appropriate. 7. Waiver. The failure ofthe Declarant, the Maintenance Corporation, or any Owner to enforce any covenant, restriction or other provision of this Declaration shall not constitute a waiver of the right to do so thereafter. No delay or omission of any party in exercising any right occmring upon anybreachofanyotherparty shall impair such right or be construed to be a and every such right may be exercised at any time during the continuance of such default. A waiver of any of the parties of a breach under any oft be terms and conditions of this Declaration by any other party shall not be construed to be a waiver of any subsequent breach or default of any other tenn or condition of this Declaration except as specifically otherwise provided in this Declaration, but each shall be cumulative with all other remedies provided in this Declaration and at law or in equity. 8. Assignment. Except as expressly provided herein, neither the Maintenance Corporation nor any Owner shall inwe to the rights of the Declarant herein until or unless the Declarant assigns such rights by express assignment in a written instrument as provided herein below. The Declarant reserves the right to assign any and all of its rights hereunder, subject to the terms and conditions herein. The Declarant shall have the same rights as the Maintenance Corporation to enforce this Declaration. Until such time as the Maintenance Corporation has been created, the right and obligations of the Maintenance Corporation set forth herein shall be vested in the Declarant; provided, however, that the foregoing shall not be construed to assign to the Maintenance Cotporation rights vested in the Declarant. Any and all of the rights, powers, title and estates reserved or given to Declarant herein may be assigned to any one or more individuals, corporations, associations or other legal entity that will agree to asswne, carry out and perform the same. Any such assignment or transfer shall be made by appropriate instrument in writing to which the assignee or transferee shall join for the purpose of evidencing its consent to the obligations and duties as are herein given and assumed by Declarant and shall be recorded in the Recorder's Office at which time Declarant shall be released from any and all obligations or duties hereunder unless the Instrument of assignment expressly provides otherwise. 9. Counterparts. This Declaration and any amendments thereto may be executed in one WPJ:IOD7910 S 20 0632571001 or more counterparts, each of which shall be deemed an original, and all such counterparts shall constitute one and the same instrument. [end of text- signature page follows] WP3:1007910 s 21 0632S7 1001 IN WTINESS WHEREOF, the undersigned, being the Declarant herein, has caused its respective seal to be affixed and these presents to be signed by its respective officer hereunto duly authorized the day and year first above written. SEALED AND DELIVERED IN THE PRESENCE OF SADDLECREEK LLC, a Delaware limited liability company STATE OF DELAWARE COUNTY OF SUSSEX By:b4 /{L/ZcZ.(" Preston A Sch<l' a n ~ b e r ) J ss_ ) BE IT REMEMBERED, that on this _iR_ day of November, 2004, personally came before me, the Subscriber, a Notary Public for the State of Delaware, Preston A. Schell, as Managing Member of Saddlecreek LLC, a Delaware limited liability company, party to this Indenture, known to me personally to be such and acknowledged this Indenture to be his act and deed and the act and deed of such company. GIVEN under my Hand and Seal of Office, the day and year aforesaid. Notary Public <3'nKm t. :Rojw Print Name My Commission Expires: t0fctJC6 WPJ:I0079105 22 0632.57 1001 (SEAL) EXHIBIT "A" ALL that certain tract, piece or parcel of land, situate, lying and being in Broadlciln Hundred, Sussex County, Delaware and being more particularly described as follows, to wit BEGINNING for the purpose of this description at a point on the Southerly right-of-way line of County Road 251, said point being a common corner for the lands being described (Lands nlf of Doughboy Partnership, L.L.C.) and lands now or formerly of MichaelS. PoweU & JerryT. Smith-Powell; thence running by and with said Lands ofPowe]l the following two (2) courses and distances: (1) Sou.th 21 degrees 14 minutes 08 seconds East, passing through an iron pipe found at 10.34 feet, 133.28 feetto a pipe found; (2) North 46 degrees, 45 minutes, 00 seconds East, 288.71 feet to a concrete monument found oD the Westerly outlines of lands now or fonnerly of James G. Femeyhough, m and Janioe C. Fcrneyhough; thence running by and with said Lands ofFerneybough, the following two (2) courses and distances: (1) by and with a portion of said Westerly outlines, South 14 degrees 43 minutes 32 seconds East, 654.48 feet to a rebar found; and (2) North 62 degrees45 minutes 35 seconds East, 804.07 feet to a rebar found on the Westerly outlines of the lands now or formerly ofLadybug Associates, L.L.C.; thence running by and with a portion of said Westerly outlines of Ladybug Associates, South 24 degrees 33 minutes 17 seconds East 574.41 feet to a concrete monument found being a common comer for the lands being descnbed, said Ladybug Associates and lands now or formerly ofDouglas M. Huff; thence running by and with a portion of said lands of Huff. South 33 degrees 02 minutes 11 seconds West 2086.75 feet to a rebar found being a common comer for the lands being descnOed and lands now or fonnerly ofJohn M. Miller, Sr. and Karen J. Miller; thence rwming by and with said lands of Miller and continuing in the same direction by and with the lands now or formerly of Lowell G. and Clarica Falke, North 40 degrees 43 minutes 22 seconds West, 2478.33 feet to a rebar found being a common comer for the lands being descnbed and said lands ofFolke; thence still running by and with said lands ofFolke and continuing in the same direction by and with the lands now or fonnetly of David W. Holleger and Peggy V. Falke, North 48 degrees 26 minutes 07 seconds East, 554.16 feet to an iron pipe found being a common comer for the lands being descn"bed. said lands of'Holleger and Falke and the lands now or formerly ofRalph R. & Florence N. Elliott; thence running by and with said lands ofElliott, the following two (2) courses and distances: (l) North 70 degrees 19 minutes 12 seconds East, 651.68 feet to a rebar found; and (2) North 42 degrees 17 minutes 22 seconds West,. 21.25 feet to a point on the aforementioned Southerly right-of- way line of County Road 25 I; thence running by and with said Southerly right--of-way line, the following two (2) courses and distances: (1) Southeasterly by a cwve to the left having a radius of 163.43 feet. an arc length of 125.79 feet and a delta angle of 44 degrees OS minutes 47 seconds to a point of tangency; and (2) North 68 degrees 45 minutes 52 seconds East 169.00 feet to the point of Beginning and containing 82.05 acres of land more or less. WP3:1007910 5 23 0631511001 SCHEDULE "A" Design Guidelines and Procedures REDDENWOOD ARCIDTECTURAL REVIEW COMMITTEE (RDC) ARCHITECTURAL GUIDELINES These architectural guidelines shall set parameters for the construction of new single-family detached homes at Reddenwood for the purpose of creating a distinctive neighborhood with diverse but compatible homes. The homes shall be of various regionally appropriate, architectural styles and shall have fenestration, colors, materials, roof pitches/styles and details appropriate to the region and particular style. The homes shall be designed to respond to both the individual lot characteristics and the surroWlding landscape and common areas to develop a diverse yet harmonious community. Regionally Appropriate Traditional Architectural Styles Colonial, Georgian, English, Colonial Revival, Neoclassical, French, French Eclectic, Italian Renaissance, Modem, Monterey, Prarie, Craftsman, Ranch, Victorian {such as generally recognized by licensed architects as appropriate adaptations of authentic styles. All references to ''regionally appropriate," whether in these Guidelines or the Declaration to which they are appended, shall have this meaning). Regionally Traditional Architectural Styles Tudor, Chateaueque, Beaux Arts, Mission, Spanish Eclectic, Pueblo Revival, Modernistic, Mediterranean. Contemporary. Log Structures, Greek Revival, Gothic Revival, Exotic Revivals, Octogon or other non-traditional (in the context of Broadkill Hundred) styles and interpretations. Appropriate materials/Details Wood, stucco, brick, stone, or architectural-grade man made materials such as concrete fiber siding, provided same have substantially the same appearance as the natural materials for which they are being substituted. Vinyl Beaded siding with a minimum 6" width between planks and minirnwn .44 Mill thickness and vinyl cedar impressions siding may be acceptable, subject to review and approval by the RDC. Wood shingle, natural or simulated slate, dimensional fiberglass shingles, copper or metal WP3:l007910 S 24 0632571001 (painted in traditional colors) accent roofs, provided that non-natural materials shall be architectural grade having substantially the same appearance as the natural materials for which they are being substituted. Painted wood. composite materials, iron Or stone colwnns (all colwnns on the front of the house must be a minimum of 8" in diameter and must have a decorative cap and base), railings, brackets, etc. on front facades, provided that non-natural materials shall be architectural grade having substantially the same appearance as the natural materials for which they are being substituted. Regionally appropriate cornice/trim details, window and door details, shutters and portico details. Windows composed of an all wood frame and sash. Wood windows maybe clad in aluminum or other non-natural materials provided same has substantially the same appearance as the natural materials they represent Inappropriate Materials/Details Concrete or poured block exterior walls (except for foundations and basement walls) Mediterranean styled tile roofs Metal roofs in non-traditional styles or colors Pressure treated columns or railings, unpainted posts etc. on front f ~ t d e Skylights on front elevations of roof HV AC compressors visible on front elevation Hollowcore windows of vinyl. aluminwn or other non-natural material. Appropriate Colors Subtle earth tones with compatible, traditional accents with regional precedence laappropriate Colors Bright, extraordinarily vibrant colors which are not traditional and appropriate to the region Appropriate Roof Pitches/Stvles Main front -to-back roofs should have a minimwn 9/12 pitch Cross gables should have a minimum 10/12 pitch 25 wPl:\0079\0 5 063257-1001 Hip roofs, simple gable roofS with dormers, and other regionally inspired and/or traditional residential forms Varied eave heights, cornice details, donner designs with historical precedence and/or consistent with approved architectural styles Inappropriate Roof Pitches/Styles Flat roofS unless part ofbalconies or porches with balustrades Shallow pitched roofs, less than 7/12, unless on accent root: porch roof or as cricket roofs Unusually steeply pitched roofs without historical precedence Other Considerations for Design Homes are restricted to 2 story homes of a maximum 42 feet (as prescribed under Sussex County Code). The square footage ofheated living space shall be no less than 1750 square feet. All facia and rakes must be a minimum 8" wide and be composed of aluminum wrapped lumber of exterior trimboard. All windows without shutters must be trimmed on all sides with 3" or wider vinyl lineal trim.boazd, fypon or painted wood trim. Use of only around windows is not permitted. Windows with shutters must have a 3''minimum width fypon or other trim material above and below the window. Front porches must be open and cannot be enclosed by screens or any other material. Rear porches can be enclosed with screening and/or glass. Foundations must be composed of poured concrete or concrete block. The exterior of all foundations must be covered by one of the following: stone veneer; brick or brick veneer, painted brick form walls or painted concrete parge coat. Exposed block foundation is not permitted. A parge coat must be applied to the block and painted. All window must have grilles in the top pane {bottom pane is optional). Grilles in casement or fixed window are not required.. Each proposed. home to be situated within Reddenwood shall be evaluated by the RDC individually, according to the proposed style of residence, consistency with these Architectural Guidelines, and the physical characteristics of the proposed lot. Said evaluation shall not apply to homes contracted through Schell Brothers. SCHEDULEOFTAXPARCELNUMBERS WPl:\007910 5 26 0632H.\OOL