Amended and Restated Declaration of

Covenants, Conditions, Restrictions, Easements, Charges and Liens

of the Gwynedale Residents Association
TABLE OF CONTENTS

Background -------------------------------------------------------------------------------------------------------------------------------- 2

Article I. Submission of Property --------------------------------------------------------------------------------------------- 3

Article II. The Property --------------------------------------------------------------------------------------------------------- 3

Article III. The Community ------------------------------------------------------------------------------------------------------ 3

Article IV. Definitions ------------------------------------------------------------------------------------------------------------- 3

Article V. Applicability and Interpretation --------------------------------------------------------------------------------- 5

Article VI. The Common Facilities and Provisions Applicable Thereto ------------------------------------------------ 5

Article VII. Authority of The Gwynedale Residents Association --------------------------------------------------------- 6

Article VIII. The Residents Association ----------------------------------------------------------------------------------------- 8

Article IX. Insurance -------------------------------------------------------------------------------------------------------------- 12

Article X. Easements ------------------------------------------------------------------------------------------------------------- 13

Article XI. Assessment Obligations of Owners ------------------------------------------------------------------------------ 14

Article XII. Transfer and Leasing of Lots ------------------------------------------------------------------------------------- 17

Article XIII. Use Restrictions ------------------------------------------------------------------------------------------------------ 19

Article XIV. Architectural Review as to Owners Lots and Dwellings ----------------------------------------------------- 20

Article XV. Compliance and Default -------------------------------------------------------------------------------------------- 21

Article XVI. Indemnification of Officers, Directors and Committee Members ----------------------------------------- 22

Article XVII. Amendments ---------------------------------------------------------------------------------------------------------- 23

Article XVIII. Duration and Termination ----------------------------------------------------------------------------------------- 23

Article XIX. Provisions Benefiting Upper Gwynedd Township ------------------------------------------------------------ 23

Article XX. General Provisions -------------------------------------------------------------------------------------------------- 24

Approval Form for Homeowner --------------------------------------------------------------------------------------------------------- 25

Rules and Regulations ----------------------------------------------------------------------------------------------------------------- 26

Enforcement Procedure ----------------------------------------------------------------------------------------------------------------- 28

Appendix A – General Complaint Form---------------------------------------------------------------------------------------------- 29

Appendix B – Policy on Violations and Fines---------------------------------------------------------------------------------------- 30

Appendix C – Notice of Violation------------------------------------------------------------------------------------------------------- 31

Exhibit “A” – Property Description---------------------------------------------------------------------------------------------------- 32

Exhibit “B” - Approval for Upper Gwynedd Township --------------------------------------------------------------------------- 33

This Amended and Restated Declaration of Covenants, Conditions, Restrictions, Easements, Charges and Liens
(“Amended and Restated Declaration”) is made this 25th day of September 2001 by the Gwynedale Resident’s
Association, (“Residents Association”).

Background

A. The Gwynedale Development is a town home community consisting of 231 townhouses on individual lots together with
common open space, located at the intersection of Sumneytown Pike and Supplee Road in Upper Gwynedd Township,
Montgomery County, Pennsylvania. The real property comprising the development consisting of the lots and the common
open space is described in Exhibit A attached hereto, incorporated herein and is referred to hereafter as the “Property”.

B. The Cutler Group Inc. (“Cutler”) developed the Property.

C. In connection with the development of the Property, Cutler created the Gwynedale Residents Association by a
Declaration of Covenants, Restrictions, Easements, Charges and Liens dated June 30, 1987 and recorded in the Office of the
Recorder of Deeds for Montgomery County on August 27, 1987 in Deed Book 4849 at Pages 611 et sec. A Declaration
amending the aforesaid Declaration dated September 22, 1987 was recorded in the Office of the Recorder of Deeds in
Montgomery County in Deed Book 4851 at Pages 2132 et sec. These two declarations together are referred to hereafter as the
“Association’s Declaration”.

D. Cutler also imposed certain restrictions on the property by a Declaration of Covenants, Conditions, Easements and
Restrictions for Gwynedale Town House Development dated June 30, 1987 and recorded in the Office of the Recorder of
Deeds for Montgomery County on August 27, 1987 in Deed Book 4849 at pages 591 et sec. (the “Restrictions Declarations”).

E. Cutler caused By-laws of the Gwynedale Residents to be created in 1987 that were amended by the Board of Directors of
the Residents Association on April 28, 1994 and May 25, 1994 (“Association By-Laws”).

F. The Association By-Laws permit the Board of Directors of the Residents Association from time to time to adopt rules
and regulations (“Rules and Regulations”).

G. The Association Declarations, Restrictions Declarations, By-Laws and Rules and Regulations are referred to hereafter
collectively as the “Association Documents”.

H. Cutler has completed construction at Gwynedale; all of the town homes have been transferred to persons other than
Cutler; and, in 1993, homeowners at Gwynedale assumed control of the Residents Association.

I. Since assuming responsibility for the operation and management of the Residents Association in 1993, the Board of
Directors has discovered that the Association Documents deal primarily with issues of concern to Cutler, mortgagees, and
Upper Gwynedd Township; are inadequate to the everyday needs of the Association; and do not conform to current
Commonwealth of Pennsylvania laws governing Residents Associations.

J. On December 19, 1996, the Pennsylvania legislature enacted the Pennsylvania Uniform Planned Community Act,
effective February 2, 1997, the “ Planned Community Act” which makes detailed provisions for the operation and
management of planned communities in Pennsylvania. The Board of Directors of the Residents Association believes it is in
the best interests of the Gwynedale Community to amend and restate the Association Declaration and the Restrictions
Declaration into a single Declaration (to be known as the “Amended and Restated Declaration”) which:

1. Restates the essential terms of those declarations.

2
 2. Updates them to incorporate provisions of the Planned Community Act.

3. Provides the authority and mechanisms necessary to the proper governance of the Residents Association.

K. The Board of Directors has authorized the preparation of the Amended and Restated Declaration which, when approved
by two-thirds (154) owners of lots in the Gwynedale Community, and the governing body of Upper Gwynedd Township, will
govern the operation and management of the Residents Association.

Now therefore, the Gwynedale Residents Association, intending to be legally bound hereby, amends and restates the
Association Declaration and the Restrictions Declaration as follows:

Article I. Submission of Property

SECTION 1.01. Submission to the Declaration. The Gwynedale Residents Association hereby submits the lands hereinafter
described in Section 2.01, the buildings and improvements constructed thereon, and all easements, rights and appurtenances
belonging thereto (the “Property”), to the terms, conditions and provisions of this Amended and Restated Declaration of
Covenants, Conditions, Easements, Charges and Liens to be known as the “Amended and Restated Declaration”.

Article II. The Property

SECTION 2.01. The Property. The property subject to this Amended and Restated Declaration consists of all that real
property with improvements erected thereon, located in Upper Gwynedd Township, Montgomery County, Pennsylvania and
more fully described in Exhibit “A” (the legal description) which is attached hereto and incorporated herein and made a part
hereof, together with the easements, rights and appurtenances belonging thereto.

Article III. The Community

SECTION 3.01. Name. The name by which the Property shall hereafter be identified is Gwynedale (the “Gwynedale
Community”).

Article IV. Definitions

SECTION 4.01. Definitions. The following terms when used herein and in the By-Laws of the Residents Association (the “
By-Laws”) are intended to be consonant with the meanings ascribed to them by this Section 4.01.

A. “Assessments” shall mean those levies, assessments or sums payable by one or more Owners from time to time upon
notification by the Residents Association, as provided herein; the obligation to pay these Assessments shall be a covenant
running with the land. Each assessment shall be separate and payable by the Owner of the Lot against which the Assessment
is levied.

B. “Association” or “Residents Association” shall mean the Gwynedale Residents Association, an Association of all
Owners which shall have the duties and powers established in this Amended and Restated Declaration and in the By-Laws.

C. “Board of Directors” or “Board” means a group of natural individuals of the number stated herein and in the By-Laws,
who shall manage and administer the business, operation and affairs of the Residents Association on behalf of the Owners.
Individual members of the Board of Directors shall be referred to as Directors.

D. “By-Laws” means the governing regulations adopted pursuant to this Amended and Restated Declaration for the
regulation and management of the Property and administration of the Residents Association, including any amendments

3
thereto adopted from time to time.

E. “Common Expenses” means and includes expenses for which the Owners are liable as provided herein, including, but
not limited to:

1. Expenses of administration, maintenance, repair and replacement of the Common Facilities;

2. Expenses or liabilities agreed upon as common by the Owners;

3. Expenditures made or liabilities incurred by or on behalf of the Residents Association, together with any allocations
to reserves;

4. Expenses of maintenance and repair of designated portions of the Lots and Dwellings; if any

5. All other expenses or charges levied or to be levied pursuant to this Amended and Restated Declaration or the By-
Laws against all Owners.

F. “Common Facilities” means any real estate within the Gwynedale Community that is owned by the Residents
Association or leased to the Residents Association. The term includes common open space identified as those areas of land
shown on the recorded subdivision plan of the Property and which are not lotted. These areas include buffers, storm water
detention and drainage areas, active and passive recreation areas and facilities, roads and sidewalks and parking areas which
are not dedicated to Upper Gwynedd Township, street lighting (except to the extent owned and or maintained by the utility
company supplying energy or facilities for street lighting), and all other facilities which the Residents Association may
hereafter own, acquire or construct.

G. “Common Receipts” means and includes the funds collected from Owners as Assessments and receipts designated as
common by the provision of this Amended and Restated Declaration and the By-Laws.

H. “Common Surplus” means and includes the excess of all Assessments over all Common Expenses.

I. “Community” shall mean the development known as Gwynedale, which includes the Property subject to this Amended
and Restated Declaration.

J. “Dwelling” means any structure erected on a Lot in the Property which, except as hereafter provided, is intended to be
used for residential purposes.

K. “Limited Common Expense” means those charges levied by the Residents Association pursuant to this Amended and
Restated Declaration against one Owner or several Owners but not all Owners for the costs and expenses incurred by the
Residents Association to provide services for the benefit of the Owner or Owners, which costs and expenses were not
included in the budget of the Residents Association.

L. “Lot” means the separate and subdivided parcel of land that is shown on the filed and recorded Plan approved by Upper
Gwynedd Township upon which a Dwelling has been erected. It does not include common facilities.

M. “Members” means all owners who have accepted a deed to their lots and who, thereby, become members of the
Residents Association and obligated to pay all assessments levied by the Residents Association. Membership in the Residents
Association is limited to Owners of Lots subjected to this Amended and Restated Declaration.

N. “Owner” means the record owner, whether one or more persons or entities of the principal title to any Lot which is
situated within the property, but excluding those persons having an interest merely as security for the performance of an

4
obligation of an owner. Multiple owners of a Lot shall together be deemed to be one owner for the purposes of this Amended
and Restated Declaration.

O. “Person” means a natural individual, corporation, partnership, association, trust or other legal entity or any combination
thereof.

P. “Plan” means the Final Subdivision Plan, approved by the Township of Upper Gwynedd and recorded in the Office of
the Recorder of Deeds in and for Montgomery County, Pennsylvania, on _________, 19 , in Plan Book ___, Page ___
showing the Property and the Gwynedale Community.

Q. “Recorded” means that an instrument has been duly entered of record in the Office of the Recorder of Deeds of
Montgomery County, Pennsylvania.

R. “Property” means the area encompassed within the final subdivision Plan of the Gwynedale Community and described
in Exhibit A attached hereto and incorporated herein.

Article V. Applicability and Interpretation

SECTION 5.01. Applicability. This Amended and Restated Declaration shall be applicable to the Property. All present and
future Owners and occupants of Lots and each of their tenants, guests, licensees, servants, agents, employees, and any other
person or persons who shall be permitted to use the Common Facilities described in this Amended and Restated Declaration,
shall be subject to this Amended and Restated Declaration, any further amendments thereto, the By-Laws, any amendments
thereto, and any rules and regulations which the Board of Directors shall promulgate from time to time to govern the conduct
of its Members and occupancy of the Property. Ownership, rental or occupancy of any of the Lots in the Property shall be
conclusively deemed to mean that the Owner, tenant or occupant has accepted, ratified and will comply with this Amended
and Restated Declaration, amendments thereto, the By-Laws, amendments thereto and any rules and regulations of the
Residents Association.

SECTION 5.02. Interpretation of Declaration and By-Laws. In the event of a conflict of interpretation between the
provis ions set forth in the By-Laws and this Amended and Restated Declaration, this Amended and Restated Declaration
shall govern.

Article VI. The Common Facilities and Provisions Applicable Thereto

SECTION 6.01. Owners Easement of Enjoyment. Every Owner shall have the right of ingress, egress and regress over and
the right of enjoyment in and to the Common Facilities which right shall be appurtenant to each Lot and shall pass with title
to every Lot subject, nevertheless, to the following provisions:

A. The right of the Residents Association to make reasonable charges and Assessments for the maintenance, repair and
replacement of the Common Facilities; for the operation of the Association; and the obligation of the owners to contribute to
the expenses of maintenance, repair and replacement of the Common Facilities and the administration of the Association.

B. The right of the Residents Association to dedicate or transfer all or any part of the Common Facilities to any public
agency, authority, or utility for those purposes and subject to those conditions agreed to by the Owners. No dedication or
transfer shall be effective unless two-thirds (2/3) of the members entitled to vote agree to the dedication or transfer; and
provided further, that approval is granted by the Board of Supervisors of Upper Gwynedd Township.

C. The rights and duties of the Residents Association respecting the operation and management of the Association and the

5
maintenance, repair and replacement of the Common Facilities as more specifically set forth in Article VIII hereof.

D. The rights and duties of the Directors of the Residents Association as more specifically set forth in Article VIII hereof.

E. An easement upon, across, over, through and under the Property for ingress, egress, installation, replacement, repair and
maintenance of all utility and service lines and systems including, but not limited to domestic water, sanitary sewer, storm
water and storm water facilities, or communication lines and systems. By virtue of this easement it shall be expressly
permissible for a utility or service company to install and maintain facilities and equipment on the Property, and providing
further, in the case of telephone, television and communication lines and systems, the service company first obtains the
permission of the Board of Directors as to any such lines or systems established after the adoption hereof.

SECTION 6.02. Non-Occupant Owners, Use of Recreational Facilities. In the event an Owner shall lease his Dwelling, the
tenant of the Dwelling shall be entitled to use any of the recreational facilities located on the Property or otherwise available
for use by all Owners; provided, however, that the tenant’s right to use the recreational facilities shall be deemed an
assignment of the Owner’s right to use these facilities and shall preclude the non-occupant Owner from also using these
facilities (unless otherwise determined by the Board of Directors).

SECTION 6.03. No Waiver by Non-use. No Owner may exempt himself from liability with respect to the payment of
Assessments levied by the Residents Association, nor release his Lot from the liens created for non-payment of Assessments
by waiver of the use of enjoyment of the Common Facilities, by abandonment of his Lot, by any conveyance or covenant
severing the rights and benefits from the Lot, or otherwise. The obligation to pay Assessments is absolute and unconditional
and, in addition to being a covenant running with the land, is a personal obligation of each Owner and shall not be subject to
setoffs or counterclaims.

SECTION 6.04. Alterations By Owner. No owner may make any changes, additions, improvements or alterations of any
kind or do any work to any of the Common Facilities. In no event may an owner make any improvements or alterations that
would jeopardize the soundness or safety of any portion of the Property. No Owner shall impair any easement within the
Common Facilities without the unanimous consent of all of the Owners affected thereby.

SECTION 6.05. Recreational Facilities. The recreational facilities shall be those open space areas as designated on the Plan,
including, but not limited to, the following improvements: tennis courts and basketball court. The Residents Association
shall assume responsibility for all maintenance, administration, management, operation and insurance for the recreational
facilities. The costs and expenses incurred or to be incurred by the Residents Association in connection with these
responsibilities shall be a Common Expense.

Article VII. Authority of Residents Association

SECTION 7.01 Authority of Residents Association. As provided at Section 5302 of the Planned Community Act, the
Residents Association shall have the power and the authority to do the following:

A. Adopt and amend By-Laws and Rules and Regulations governing the use and care of the Property, including the
Common Facilities, the Lots and the dwellings to the extent reasonably related to preserving and enhancing the value of
dwellings in the Community and to the Residents Association’s maintenance, repair and replacement obligations under this
Amended and Restated Declaration.

B. Adopt and amend budgets for revenues, expenditures and reserves, and collect assessments for common expenses from
lot owners.

6
C. Hire and terminate managing agents and other employees, agents and independent contractors.

D. Institute, defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or
more lot owners on matters affecting the planned community.

E. Make contracts and incur liabilities.

F. Regulate the use, maintenance, repair, replacement and modification of common elements.

G. Cause additional improvements to be made as a part of the Common Facilities.

H. Borrow funds in the name of and behalf of the Residents Association to be used for any purpose for which common
expense assessments may be used and, except as hereafter provided, pledge assets of the Residents Association to assure
payment of any loan.

I. Assign the Residents Association’s right to any future income, including the right to receive commo n expense
assessments, as security for the payment of any loan.

J. Acquire, hold, encumber and convey in its own name any right, title or interest to real or personal property, but common
facilities may be conveyed or subjected to a security interest only if the persons entitled to cast at least 80% of the votes in
the Residents Association agree to that action.

K. Grant easements, leases, licenses and concessions through or over the Common Facilities.

L. Impose and receive, fees or charges for the use, rental or operation of the Common Facilities.

M. Impose charges for late payment of assessments and after notice and an opportunity to be heard, levy reasonable fines for
violations of the Declaration, By-Laws and Rules and Regulations of the Residents Association.

N. Impose reasonable charges for the preparation and recording of amendments to the Amended and Restated Declaration,
resale certificates required by Section 5407 of the Planned Community Act.

O. Impose a capital improvement fee in an amount established by the Directors on the resale or transfer of lots, to be paid
by the Buyer, in accordance with the following:

1. The capital improvement fee for any lot shall not exceed the annual assessments for general common expense
charged to such lot during the most recently completed fiscal year of the Association or such greater amount as may
be permitted by the Pennsylvania Uniform Planned Community Act (the “Act”).

2. Capital improvement fees must be maintained in a separate capital account and may be expended only for new
capital improvements or replacement of existing common facilities.

3. Capital improvement fees may not be expended for operation, maintenance or other purposes.

4. No capital improvement fee shall be imposed on any gratuitous transfer of a Lot between any of the following
family members: spouses, parent and child, siblings, grandparent and grandchild.

P. Provide for the indemnification of its officers and board members and maintain directors’ and officers’ liability
insurance.

Q. Use such portion of the principal amount in the Capital Account established upon transfer of units by the Developer for
capital expenses and not for repair, maintenance or operating expenses, when, in the judgment of the Board of Directors, it is

7
prudent or expedient. Members of the Residents Association, by majority vote, may reject any such use approved by the
Board of Directors of the Residents Association at a general membership meeting. Capital expenses shall include those items
identified by a Certified Public Accountant experienced in the area of common interests accounting as capital.

R. Exercise any other powers conferred by this Amended and Restated Declaration or the By-Laws.

S. Exercise any other powers necessary and proper for the governance and operation of the Residents Association.

SECTION 7.02. Authority of Board of Directors. Except as otherwise provided in this Amended and Restated Declaration
or in the Association’s By-Laws, the Board of Directors may act in all instances in behalf of the Residents Association. In the
performance of their duties, officers and members of the Board of Directors shall stand in a fiduciary relationship to the
Association and perform their duties in good faith; in a manner they believe to be in the best interests of the Association; and
with care, including reasonable inquiry, skill and diligence, a person of ordinary prudence would use under similar
circumstances. In performing any duties, an officer or board member shall be entitled to rely in good faith on information,
opinions, reports or statements, including financial statements and other financial data, in each case prepared or presented by
any of the following:

A. One or more other officers or employees of the Association whom the officer or board member reasonably believes to be
reliable and competent in the matters presented.

B. Counsel, public accountants or other persons as to matters which the officer or board member reasonably believes to be
within the professional or expert competence of that person.

C. A committee of the Board upon which the officer or Board member does not serve, designated in accordance with law,
as to matters within its designated authority, which committee the officer or Board member reasonably believes to merit
confidence.

SECTION 7.03 Limitation on Authority. The Board of Directors may not act on behalf of the Residents Association to
amend the Amended and Restated Declaration (except as provided at Section 17.01(c.) hereof), to terminate the Residents
Association or to elect members of the Board of Directors or to determine their qualifications, powers and duties or terms of
office. However, Board members may fill vacancies in its membership by direct appointment for the unexpired portion of any
term.

SECTION 7.04. Authority of Members of Residents Association. The members of the Residents Association shall have the
right and authority to elect members to the Board of Directors and to exercise all other rights enumerated in Article VIII
hereof. In addition to other rights conferred by this Amended and Restated Declaration, members of the Residents
Association, by majority vote, may reject any budget approved by the Board of Directors of the Residents Association within
30 days after distribution of the budget by the Board of Directors. The Board of Directors shall deliver to all members copies
of each budget approved by it after such approval.

Article VIII. The Residents Association

SECTION 8.01. Membership in the Residents Association.

A. All Owners upon acceptance of the deed to their Lots shall become Members of the Residents Association and shall be
obligated to pay all Assessments levied by the Residents Association. Except as otherwise provided, membership in the

8
Residents Association shall be limited to the Owners of Lots subjected to this Amended and Restated Declaration.

B. Every Owner, as a Member of the Residents Association, shall be entitled to all of the obligations accompanying
membership; provided any person who is holding an interest in a Lot merely as a security for the performance of an
obligation shall not be a Member.

C. There shall be only one class of Member in the Residents Association that shall be Owners. Owners shall be entitled to
one vote for each lot they own in the Gwynedale Community.

D. When more than one person holds an interest in any Lot, they shall be one Member collectively, and the vote for the Lot
shall be exercised as provided in Section 8.02 hereof and in the By-Laws.

E. A member shall be deemed to be “in good standing” and “entitled to vote” at any annual meeting or at any special
meeting of the Residents Association if, and only if, he shall have fully paid all Assessments made or levied against him or
against his Lot by the Board of Directors as hereinafter provided, together with all interest, costs of collection, attorneys fees,
penalties and other expenses, if any, properly chargeable to him or against his Lot, at least fifteen (15) days prior to the date
fixed for the annual or special meeting.

F. In the event that an Owner shall lease or permit another to occupy his Lot in accordance with the provisions of this
Amended and Restated Declaration, the tenant or occupant shall be permitted to enjoy the Common Facilities but shall not
vote in the affairs of the Residents Association, except when the Owner shall permit the tenant or occupant to exercise the
proxy vote of the Owner.

G. Every lawful transfer of title to a Lot shall include membership in the Residents Association and, upon making this
transfer, the previous Owner’s membership shall automatically terminate. Except as otherwise expressly provided,
membership in the Residents Association may not be assigned or transferred without the transfer of legal title to a Lot and
any attempt at assignment or transfer thereof shall be void and of no effect.

SECTION 8.02. Voting. Each Lot in the Residents Association shall be allocated one vote. Votes in the Residents
Association shall be allocated to each Lot in accordance with Section 8.01(c) above. If a Lot is owned by more than one
person and there is a conflict between any one or more of the Owners of the Lot as to how the vote associated with the Lot
should be cast, the vote shall be deemed included for purposes of determining a quorum but the conflicting votes cast by
Owners of the Lot shall otherwise void the vote associated with the Lot. If a Lot is owned by a corporation, the officer or
employee thereof, entitled to cast the vote of the Lot for the corporation shall be designated in a certificate for this purpose,
signed by the president or vice-president, and attested to by the secretary or assistant secretary of the corporation, and
submitted to the Secretary of the Residents Association.

SECTION 8.03. Residents Association Maintenance Responsibilities.

A. Notwithstanding the delineation of ownership between the Residents Association and individual Owners or the
distinctions among the Common Facilities and Lots, the Residents Association shall provide, limited only to the extent as
determined by the Board of Directors, maintenance, repair and replacement of the Common Facilities. The Association shall
provide snow (and, to the extent feasible, ice) clearing on all private streets and all sidewalks along the streets (but not
driveways or sidewalks leading to individual units).

B. Notwithstanding the delineation of ownership between the Residents Association and individual Owners or the
distinctions among the Common Facilities and the Lots, the Residents Association may provide the following maintenance,

9
repair and replacement services for the Owners:

1. Landscape maintenance (including but not limited to, mowing, trimming, edging, fertilization, chemical work, bed
maintenance and mulch) of turf, planted beds, trees, bushes and shrubs in all areas in the front and rear of the Lot;
excluding landscape plantings at building foundations and other “private” beds;

2. Repair and replacement of mailbox shelters and pads;

3. Repair and replacement of shingle roofs due to age and deterioration;

4. Repair and resurfacing tennis courts;

5. Repair and resurfacing basketball courts;

6. Repair, replacement and repaving private streets, curbs, street sidewalks and drive aprons;

7. Repair and replacement of retaining walls; and

8. Repair and replacement of fences, detention basin, stormwater drainage facilities and signs located on the common
facilities.

C. Notwithstanding the delineation of ownership between the Residents Association and individual owners or the
distinctions among the common facilities and the lots, the Residents Association may perform such other maintenance, repair
and replacement as the Board of Directors, from time to time, elects.

D. The Board of Directors as part of the Common Expenses or as Limited Common Expenses shall assess the cost and
expense of the foregoing maintenance, repair and replacement against the Owners and their Lots. The Board of Directors
shall include in the annual budget of the Residents Association an allocation of part of the Common Expenses to reasonable
reserves to be accumulated for these periodic maintenance, repair and replacement expenses.

E. The time and extent of the foregoing maintenance, repair and replacement by the Residents Association shall be
determined solely by the Board of Directors. All costs and expenses incurred by the Residents Association shall be either
Common Expenses or Limited Common Expenses to be assessed to the Owners by the Board of Directors. Except as
specified in Paragraphs B and C above, all aspects of repair, maintenance and replacement of all portions of the Owner’s Lot
or Dwelling shall be the responsibility of the Owner and all maintenance, repair and replacement of portions of the Common
Facilities shall be the responsibility of the Residents Association; provided, however than any costs incurred by the Residents
Association in connection with any of the foregoing maintenance, repair or replacement items which may arise in connection
with the negligence of the Owner(s) or occupant (s) of any particular Lot shall be charged as Limited Common Expenses to
these Owner(s). As a further exception to the Residents Association’s obligations, all maintenance, repair and replacement of
water lines and sewer lines that service a particular Dwelling shall be the Owner’s obligation regardless of whether these
lines are located on or off the Owner’s Lot.

F. The Residents Association, its agents, managers, management firms and representatives and employees shall have the
irrevocable right and easement to have access to and go upon each Lot to perform the maintenance, repair and replacement
obligations set forth in Sections 8.04(a) and (b) above.

G. Each Lot shall have an easement of use, access, maintenance and repair for any facility or portion of the property which
is appurtenant to the Lot and which is totally or partially located upon an adjacent Lot.

H. Replacement of any portion of an Owner’s Lot or Dwelling shall be subject to the architectural review
10
guidelines and procedures established by the Board. Maintenance and repair of any exterior components of the Dwelling shall
be subject to architectural guidelines establishing materials, paint colors and the like in order to maintain the harmonious
appearance of the community.

SECTION 8.04. Maintenance Obligations of Owners.

A. Each Owner shall be responsible for the insurance, maintenance, repair and replacement of his Dwelling and Lot, except
as set forth in Section 8.03(b), including the following:

1. Maintenance, repair and replacement of the Dwelling located on his Lot, including the roof system, and snow and
ice clearing on all driveways, private walks, decks, porches, and patios;

2. Cleaning, repair and replacement of all skylights;

3. Cleaning, repair and replacement of all gutters, downspouts and splash blocks;

4. Cleaning, repair and maintenance of chimney flues, fireplaces, hearths, and heating and air conditioning units;

5. Replacement of the exterior siding and fascia, accent pieces, rake board and corner pieces on the Dwellings;

6. Repair and replacement of all window trim and frames and entrance doors and garage doors;

7. Maintenance, cleaning, repair and replacement of the window glass, sliding glass doors and frames;

8. Maintenance, cleaning, repair and replacement of all door hardware and mechanicals, decks, railings, patios,
foundations and porches;

9. Maintenance, cleaning, repair and replacement of all lamp posts and exterior lighting;

10. Maintenance, repair and replacement and repainting of all interiors of the Dwellings;

11. Watering of all lawns and landscaping on the Lot and maintenance and watering of plantings placed on the Lot by
the Owner with permission of the Board, except as limited by water restrictions imposed by authorities; and

12. Immediate clean up any waste left by pets anywhere on the Property, including the owner’s lot.

B. In the event an Owner shall fail to fulfill his maintenance obligations set forth in this Section 8.04, the Association may
fulfill these maintenance obligations, after giving the Owner thirty (30) days notice of his failure to fulfill these obligations,
and all costs and expenses incurred by the Association to fulfill these obligations shall be assessed against the Owner and his
Lot as a Limited Common Expense.

C. To the extent maintenance, repair and replacement of a Lot by an Owner may involve the possible damage to the
Common Facilities or other Lots, the work shall be performed only with the prior consent of the Board of Directors or its
duly authorized agent, except in the case of an emergency. The work may be performed only by a person or entity who shall
deliver to the Board of Directors prior to the commencement of any work, in a form satisfactory to the Board of Directors the
following:

1. Releases of the Board of Directors and their agents, servants and employees for all claims that these persons or
entities or their respective agents, servants or employees may assert in connection with work to be performed;

2. An indemnification for the Residents Association and the Board of Directors and their agents, servants and
employees holding each and all of them harmless from and against any claims asserted for loss or damage to person

11
 or property, including, but not limited to, the Common Facilities or other Lots;

3. Certificates or other acceptable evidence of insurance, including liability and workmen’s compensation coverage in
amounts and companies reasonably acceptable to the Board of Directors; and

4. All other information and protections that the Board of Directors may reasonably require.

Article IX. Insurance

SECTION 9.01. Liability. The Board of Directors shall obtain or cause to be obtained “broad-form” comprehensive public
liability and property damage insurance covering liability for loss of damage to persons or property in those amounts, against
those risks and in those insurance companies, which the Board of Directors shall from time to time determine, but in no event
less than One Million ($1,000,000) Dollars for bodily injury, including deaths of persons and property damage arising out of
a single occurrence. This insurance shall include protection against liability for the property of others, and any other risks that
are customarily covered in similar policies for associations similar to the Residents Association. All liability insurance
contracts shall contain severability of interest provisions and cross liability endorsements to cover liabilities of the
Association or the Owners as a group to an Owner.

SECTION 9.02. Property.

A. The Board of Directors shall obtain or cause to be obtained “master” or “blanket” “all-risk” hazard and, if applicable,
flood insurance coverage covering damage to the Common Facilities including fixtures and equipment therein and thereof
and including all personal property owned by the Association (the “Insured Property”).

B. Each Owner shall be individually responsible for maintaining “all-risk” hazard, and, if applicable, flood, insurance
coverage for his Lot and the improvements constructed thereon and the fixtures located therein and for all personal property
of the Owner in an amount equal to the maximum insurable replacement value, providing for no “co-insurance”, and
containing an “agreed amount endorsement” or its equivalent, and, if available, an “Inflation Guard Endorsement”.

C. Each Owner, upon acceptance of the Deed to any Lot, shall provide the Association with a copy of the insurance policy
obtained pursuant to this Section, or a certificate of insurance evidencing the required insurance. All insurance policies shall
name the Residents Association either as an additional insured or a certificate holder. Each policy shall provide that it may
not be cancelled without thirty (30) days advance written notice to the Owner and the Residents Association. The cost for this
insurance shall be an individual obligation of the Owner of the Insured Lot.

D. In the event of damage or destruction to any part of a Lot, the Association shall have the right to repair or replace the
damaged portion utilizing the insurance proceeds under the insurance coverage required in Section 9.02(b) provided the
Owner has failed to repair or replace the damaged portion of the Lot.

SECTION 9.03. Residents Association’s Power to Compromise Claim. The Board of Directors is hereby empowered to
compromise and settle claims arising under insurance policies purchased by the Residents Association, and to execute and
deliver releases therefore, upon the payment of claims.

SECTION 9.04. Other Insurance. The Board of Directors shall also obtain the following insurance coverage and
endorsements which may be applicable to the Common Facilities or other Insured Property, all premiums for which are to be
charged as Common Expenses.

A. Workmen’s compensation policy to meet the requirements of law.

12
B. Directors and officers, liability and any other insurance that the Board of Directors shall deem necessary.

C. Fidelity bond insurance.

D. All other insurance which the Board of Directors shall determine from time to time to be necessary or desirable.

SECTION 9.05. Limitation of Liability. Notwithstanding the duty of the Board of Directors to maintain and repair the
Common Facilities and portions of the Lots, the Board of Directors shall not be liable for injury or damage caused by the
failure of the Board of Directors to maintain or repair the same, except to the extent of the proceeds of insurance carried by
the Board of Directors and collected and received therefore.

Article X. Easements

SECTION 10.01. Utilities. All of the Property shall be subject to an easement for the present and future installation and
maintenance of electric service, master and/or cable television service, telephone service, water service, storm water and
sanitary sewage services, gas service and other utility services and the facilities and appurtenances necessary to the same,
which easement shall run in favor of the Residents Association and the entity or entities owning or operating these facilities
and providing the aforementioned services. The Board of Directors shall have the right to grant to third parties additional
utility easements that are deemed reasonable by the Board of Directors in connection with the supply of utility services to the
Lots or the Common Facilities. The Residents Association shall have the right to connect or tie into an Owner’s outdoor
water spigots and to use reasonable amounts of water therefrom without cost or charge for purposes of watering planted and
grass areas of the Property. This right shall continue as to areas of the Property for a period of ninety (90) days after the
planting or replanting of these areas with landscaping, seed or sod, or under drought conditions.

SECTION 10.02. Residents Association and Board of Directors Access. The Residents Association and its Board of
Directors, officers, agents and employees, shall have the irrevocable right and easement to have access to each Lot as may be
necessary for the inspection, maintenance, repair or replacement of any of the Common Facilities therein or accessible
therefrom or the making of any addition or improvements thereto or to make repairs to any Lot and the Common Facilities (if
these repairs are reasonably necessary for public safety or to prevent damage to the Common Facilities, or to abate any
violation of this Declaration or any rules or regulations of the Residents Association or any violation of any laws or orders of
any governmental authorities having jurisdiction over the Property). The cost of the repairs made to any Lot shall be
chargeable to the Owner of the Lot as a Limited Common Expense. The Residents Association and its Board of Directors
shall have the right to grant permits, licenses and easements over and through the Common Facilities for utilities, rights of
way, and other purposes reasonably necessary or useful for the proper maintenance and operation of the Common Facilities.

SECTION 10.03. Encroachments. If any portion of the Common Facilities hereafter encroaches upon any Lot, or if any
Dwelling or improvement constructed by the Developer on a Lot hereafter encroaches upon any other Lot or upon any
portion of the Common Facilities as a result of settling or shifting of any improvement constructed by the Developer, other
than as a result of the purposeful or negligent act or omission of the Owner of the encroaching improvement or of the
Residents Association in the case of encroachments by the Common Facilities, a valid easement appurtenant to the Lot, upon
which the encroaching improvement is primarily situated, or Common Facilities for the encroachment and for the
maintenance of the same shall exist for so long as the encroachment shall exist.

SECTION 10.04. Easements Created in Favor of the Residents Association and Rights of Owners With Respect to
Utilities. The rights and duties of the Owners of Lots within the Community with respect to sanitary sewer, storm sewer,
water, electricity, telephone lines and connections shall be governed by the following:
13
When an owner installs, repairs or replaces sanitary sewer lines and connections, water lines and connections, electricity lines
and connections or telephone lines and connections in or upon a Lot served by these lines and connections, the Residents
Association shall have the right, and is hereby granted an easement to the full extent necessary therefore to enter upon the Lot
and to have the utility companies or authorities enter upon the Lot in or upon which the lines or connections, or any portion
thereof, lie, to repair, replace and generally maintain the lines and connections as and when they may deem the same
necessary. The Owner shall be responsible for restoring the surface of the easement area to the same condition that existed
prior to the exercise of this easement to the extent that the utility company or authority exercising the easement is not so
responsible or has not done so.

Whenever sanitary sewer lines and connections, water lines and connections, electricity lines and connections or telephone
lines and connections are installed within the Community which lines and connections serve more than one Lot, the Owner of
each Lot served by the lines and connection shall be entitled to the full use and enjoyment of the portions of the lines and
connections which serve his Lot.

In the event of a dispute between Owners with respect to repair or rebuilding of these utility lines and connections, or with
respect to the sharing of the costs thereof, then, upon written request of any one of these Owners, addressed to the Residents
Association, the matter shall be submitted to the Board of Directors, who shall decide the dispute, and the decision of the
Board of Directors shall be final, conclusive and binding on all parties.

SECTION 10.05. Easements for Walls. Each Owner shall have an easement of use, access, maintenance, repair and
replacement for any part of his Lot or Dwelling that is on or is attached to another Lot or Dwelling. This includes an
easement for any Dwelling exterior wall that is located on the Lot line separating the Dwelling and its Lot from another
Dwelling and its Lot.

SECTION 10.06. Easements for Streets and Sanitary Sewer Lines. Each Owner and his Lot shall have an easement of
ingress, egress, regress and use in, over, to and through any streets and sanitary sewer gravity lines completed by the
Developer in the Property.

Article XI Assessment Obligations of Owners

SECTION 11.01. Assessment Obligations of Owners.

A. Each Owner, by acceptance of the deed for his Lot, whether or not it shall be so expressed in his deed or other
conveyance, shall be deemed to covenant and agree to pay to the Residents Association (in addition to any other charges or
costs levied by the Residents Association pursuant to this Amended and Restated Declaration) all Assessments, including, but
not limited to the following:

1. Regular Assessments to be made due and payable on a periodic basis as reasonably determined from time to time by
the Board of Directors based upon the budget of the Residents Association;

2. Special Assessments established and collected from time to time as provided in this Amended and Restated
Declaration;

3. Any other charges or Assessments for what may be determined from time to time by the Residents Association, to
be Common Expenses; and

4. Any interest charges, attorneys fees, costs of collection, penalties or fines levied by the Board of Directors for non-
payment of Assessments or for non-compliance with the terms and provisions of the Amended and
14
 Restated Declaration, the By-Laws or any rules or regulations created by the Board of Directors.

B. The Residents Association shall have the right to assess Limited Common Expenses against any one or more Lots to
provide services which are provided exclusively for these Lots, including, but not limited to, the improvement and
maintenance of Common Facilities used principally by or benefiting the Owners of these Lots. For purposes of this Amended
and Restated Declaration, Limited Common Expenses shall be included as Assessments and all provisions of this Article XI
that apply to Assessments shall apply to Limited Common Expenses.

C. The regular and special Assessments and Limited Common Expenses, together with any interest thereon, fines, late
charges and costs of collection thereof (including attorneys fees), as hereinafter provided, shall be a charge against the Lot
and shall be a continuing lien upon the Lot against which each Assessment is made form the time the Assessment, fines, late
charges or costs of collection become due. Each Assessment, together with interest thereon, fines, late, charges and costs of
collection thereof (including attorneys fees) as hereinafter provided shall also be the personal obligation of the Owner who
was the Owner of the Lot at the time when the Assessment became due.

D. No Owner may exempt himself from contributing toward these expenses by waiver of the use or enjoyment of the
Common Facilities or by abandonment of the Lot owned by him or by setoff or counterclaim. The obligation to pay
Assessments, and Limited Common Expenses is absolute and unconditional and, in addition to being a covenant running with
the land, is a personal obligation of each Owner and shall not be subject to setoffs or counterclaims.

SECTION 11.02. Owner’s Negligence. Each Owner shall be obligated to reimburse the Residents Association for any
expenses incurred by it in repairing or replacing any part or parts of the Common Facilities damaged by his act, omission or
negligence or by the act, omission or negligence of his tenants, agents, guests or licensees, promptly upon receipt of the
Residents Association’s statement therefore.

SECTION 11.03. Surplus Funds. Any Common Surplus of the Residents Association remaining after payment of or
provision for Common Expenses and any payment of reserves may be used by the Residents Association as determined by
the Board of Directors.

SECTION 11.04. Time of Payment. Except as otherwise provided in this Declaration, payment of Assessments by the
Owner shall be made at the discretion of the Board of Directors; provided that all regular and special Assessments shall be
declared by the Board of Directors and made due and payable on a yearly, quarterly or monthly basis as determined by the
Board. The failure of the Board of Directors to formally declare Common Expense Assessment shall result in the Common
Expense Assessment for the immediately preceding year being the Common Expense Assessment applicable to and for the
current year.

SECTION 11.05. Lien for Assessments. All Assessments and charges chargeable to any Lot, including all fines, fees,
charges, late charges, interest, and costs of collection thereof (including attorneys’ fees), and penalties levied for non-
compliance with this Amended and Restated Declaration, the By-Laws and any rules and regulations of the Residents
Association shall constitute a lien again the Lot in favor of the Residents Association; provided that all fines, fees, charges,
late charges, interest, costs of collection (including attorneys’ fees and penalties) shall be subordinate to the lien of any
Eligible Mortgagee to the extent provided at Section 5315 of the Planned Community Act. This lien shall be effective from
and after the time the Assessment or charge becomes due and shall be evidenced by the recording in the Office of the
Recorder of Deeds in and for Montgomery County, Pennsylvania, of a claim or lien stating the description of the Lot, the
name of the record Owner and the date when the Assessment or charge became due. This claim of lien shall include only

15
those sums that are due and payable when the claim of lien is recorded and shall be signed and verified by an officer of the
Residents Association. Upon full payment of all sums secured by the lien and payment of a preparation fee, the party making
payment shall be entitled to a recordable satisfaction of lien to be recorded at his sole expense.

SECTION 11.06. Effect of Non-Payment of Assessments. Any Assessment or installment thereof not paid within sixty (60)
days after the due date shall bear interest from the due date at the rate of fifteen (15%) percent per annum or a higher rate
permitted by law which the Board of Directors shall from time to time determine. The Board of Directors may assess fines,
late charges and costs of collection (including attorneys’ fees). The Board of Directors shall also have the right to declare a
delinquency Assessment, as established from time to time by the Board of Directors, against any Owner whose Assessments
are delinquent for a period exceeding fifteen (15) days from the due date. The Board of Directors shall have the right to
accelerate payment of any unpaid regular or special Assessments for the remainder of the fiscal year.

SECTION 11.07. Method of Enforcing Collection of Assessments. Any Assessment charged against a Lot may be enforced
by a lawsuit brought by the Board of Directors on behalf of the Residents Association and/or the Owners in an action at law
or equity against the Owner personally obligated to pay the same, or by executing the lien described in Section. 11.05 against
the Lot, or both, and it may seek whatever other remedy is available at law or in equity. In addition to these rights and
remedies available to the Residents Association, the Residents Association shall have the right to revoke the rights of an
Owner in the Residents Association, including the right to vote; provided the Residents Association shall give written notice
of this revocation and an opportunity for the defaulting Owner to be heard before the Board of Directors. The decision of the
Board of Directors shall be final. Any judgment against a Lot and its Owner shall be enforceable in the same manner as is
otherwise provided by law. Attorneys’ fees, court costs and collection expenses incurred by the Board of Directors incident to
the collection of any Assessments or the enforcement of any lien, together with all sums advanced and paid by the Board of
Directors for taxes and payments on account of superior liens which may be required to be advanced by the Board of
Directors in order to protect its lien, shall be payable by the Owner and secured by this lien.

SECTION 11.08. Unpaid Assessments at the Time of Execution Sale Against a Lot. In the event that title to a Lot is
transferred by sheriff’s sale pursuant to execution upon any lien against the Lot, the Board of Directors may give notice in
writing of any unpaid Assessments, which are a charge against the Lot but have not been reduced to a lien, to the sheriff and
the sheriff shall pay the Assessments of which he has notice out of the proceeds of the sale which remain in his hands for
distribution after payment of all other claims which he is required by law to pay, but prior to any distribution of the balance to
the former Owner against whom the execution issued. The purchaser at the sheriff’s sale and the Lot involved, shall not be
liable for unpaid Assessments which come due prior to the sheriff’s sale of the Lot, except to the extent of unpaid
Assessments that come due during the previous six month period provided at Section 5315 of the Planned Community Act,
which are not paid out of the proceeds of sale. Any unpaid Assessments which cannot be promptly collected from the former
Owner may be reassessed by the Board of Directors as a Common Expense to be collected from all the Owners of the Lot,
including the purchaser or acquirer of title at the sheriff’s sale, his successors and assigns. To protect its right to collect
unpaid Assessments that are a charge against a Lot, the Board of Director’s may, on behalf of the Owners, purchase the Lot at
sheriff’s sale provided this action is authorized by the affirmative vote of a majority of the Board of Directors. If it does so
purchase, the Board of Directors shall thereafter have the power to sell, convey, mortgage or lease the Lot to any person
whatsoever.

SECTION 11.09. Voluntary Sale of a Lot. Upon the voluntary sale or conveyance of a Lot, or any other transfer by
operation of law or otherwise, except a transfer described in Sections 11.08 or 11.10 of the Amended and Restated

16
Declaration, and a transfer by Deed in lieu of foreclosure to a mortgagee, the grantee shall be jointly and severally liable with
the grantor for all unpaid Assessments for Common Expenses or Limited Common Expenses which are charges against the
Lot as of the date of the sale, conveyance or transfer. This joint and several liability shall be without prejudice to the right of
the grantee to recover from the grantor, in the amount of any unpaid Assessments which the grantee may pay, and until these
Assessments are paid, they shall continue to be a charge against the Lot, which may be enforced in the manner set forth in
Section 11.07 above; provided, however, any person who shall have entered into a written agreement to purchase a Lot shall
be entitled to obtain a written statement from the Treasurer of the Residents Association setting forth the amount of unpaid
assessments as of the date it is rendered, and neither the purchaser nor the Lot after transfer thereof shall be liable for the
payment of the amount in exc ess of the unpaid Assessments shown on the statement.

SECTION 11.10. Mortgage Foreclosure. If a mortgagee or other purchaser of a Lot acquires title to the Lot as a result of
foreclosure of the first mortgage, or by deed in lieu of foreclosure, the acquirer of title, his successors and assigns, shall not
be liable for the share of Common Expenses or other charges by the Residents Association pertaining to the Lot or chargeable
to the former Owner which accrue prior to acquisition of title as a result of the foreclosure, except for Common Expenses and
other Assessments that come due during the six month period provided at Section 5315 of the Planned Community Act. The
unpaid share of the charges shall be a Common Expense collectible from all Owners including the acquirer of the Lot by
foreclosure, his successors and assigns.

Article XII. Transfer and Leasing of Lots

SECTION 12.01. Transfer of Lots. Any Owner may, at any time, transfer all of his ownership in the Lot (which must
include his membership in the Residents Association) to any other person, and it shall not be necessary to secure the prior
consent of the Residents Association, Board of Directors or any other Owner.

SECTION 12.02. Leasing of Lots.

A. No Owner shall be permitted to lease all or any portion of his Lot unless the Owner has complied with the relevant
provisions of the Amended and Restated Declaration, including Section 12.03(a), the By-Laws and any applicable rules and
regulations promulgated from time to time by the Board.

B. All leases must be in writing. The Residents Association must approve all lease forms.

C. All leases shall provide that the tenant shall be subject in all respects to the provisions of this Amended and Restated
Declaration, the By-Laws and any Rules and Regulations of the Residents Association promulgated from time to time by the
Board of Directors.

D. The leasing of a Lot shall not affect the liability of the Owner with respect to his obligations under this Declaration, the
By-Laws and any Rules and Regulations promulgated from time to time by the Board of Directors.

E. In the event the tenant fails to abide by the obligations set forth in this Declaration, the By-Laws, and/or the Rules and
Regulations, the Association may assess fines against the tenant and the Lot for the violation of that Amended and Restated
Declaration, the By-Laws and/or the Rules and Regulations. In the event the tenant fails to pay any fine levied by the
Association, the Association may collect the fine from the Owner of the leased Lot in the same manner as if the fine were
originally assessed against the Owner and his Lot. It shall be the obligation of the Owner to ensure that any fine assessed
against his tenant is paid in full to the Association.

F. The inclusion of Subsections C, D, E, and F of this Section 12.02 in a form of lease or addendum to a lease for the rental

17
of a Lot shall be a condition precedent to the approval of the form of lease by the Board of Directors.

SECTION 12.03. Mandatory Disclosure to Lot Purchaser or Tenant.

A. Any Owner who leases or sells his Lot shall provide his tenant or purchaser, at the Owner’s expense, a current copy of
this Amended and Restated Declaration, the By-Laws, all Rules and Regulations promulgated by the Residents Association,
any amendments to the foregoing and any other covenants, conditions or restrictions and related documents which may apply
to the Dwelling. Within (5) days after the execution of a lease or an agreement for the sale of the Lot by the Owner, the
Owner shall submit to the Residents Association a certificate signed by the tenant or purchaser that certifies that the tenant or
purchaser has received copies of the documents applicable to the Lot. Within five (5) days after the execution of a lease for
the Lot, the Owner shall submit a copy of the executed lease to the Residents Association.

B. Upon the resale of a Lot by a Lot Owner, the selling owner shall furnish to a purchaser, before conveyance of the Lot, in
addition to the documents required by Section 12.03(a) hereof, a certificate issued by the Residents Association containing
the following information:

1. A statement of the then current amount of the Assessments payable monthly and whether payment is made monthly,
quarterly or yearly and any unpaid Assessments currently due and payable from the selling owner;

2. A statement of any other fees payable by the selling owner;

3. A statement of the capital expenditures currently proposed or adopted by the Residents Association for the current
and next two succeeding fiscal years, if these have been determined;

4. A statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated
by the Residents Association for any specified project;

5. A copy of the most recent regularly prepared balance sheet and income and expense statement, if any, of the
Residents Association;

6. A copy of the current operating budget of the Residents Association;

7. A statement describing any insurance coverage that may be provided for the benefit of Owners;

8. A statement of any architectural review violations that have not been corrected.

9. A statement of any judgments against the Association and the status of any pending suits to which the Association is
a party;

10. A statement as to whether the Association has knowledge of any alterations or improvements to the Lot that violate
the provisions of this Amended and Restated Declaration;

11. A statement of whether the Association has knowledge of any violations of governmental regulations or the
existence of any hazardous conditions on the property; and

12. Any other relevant information as required by Section 5407 of the Planned Community Act.

C. The Residents Association shall furnish a certificate containing the information described above within ten (10) days of a
written request from the Lot Owner or their agent, and, if requested, copies of the Amended and Restated Declaration, By-
Laws, and all Rules and Regulations promulgated by the Residents Association, as well as any amendments to any of the
foregoing. The Residents Association shall have the power to assess reasonable costs for the preparation of the Certificate

18
and providing of any of the documents set forth herein to the selling owner and to require payment thereof prior to the
delivery of a Certificate to the selling owner. A Purchaser is not liable for any unpaid Assessment or fee greater than the
amount set forth in the Certificate prepared by the Residents Association.

D. If requested, copies of the Gwynedale Residents Association property specification and the Association welcome packet
will be provided to the Purchaser.

Article XIII. Use Restrictions

SECTION 13.01. Use Restrictions.

A. Each Lot and the owner and occupant of each Lot shall be subject to the following restrictions and to Rules and
Regulations adopted by the Board of Directors and amended from time to time. The Rules and Regulations shall address such
matters as the keeping of pets and clean up of their waste, the keeping and operating of motor vehicles, the care and upkeep
of Lots and Dwellings including their exterior appearance, the construction of patios, decks and the like, the storage of
personal property outside of Dwellings, and the placement of structures on the Lot, as well as other matters which will assure
the reasonable use of the property and will avoid creating a nuisance or unreasonable interference with other Lot owners. A
copy of the Rules and Regulations in effect as of the date this Amended and Restated Declaration was approved, is attached
as Appendix A to the Amended and Restated Declaration. A copy of the current Rules and Regulations will be provided to
Lot owners at the time of agreement of sale.

B. Each Lot shall be used for residential purposes only, provided that home occupations may be carried on in the Lot if the
use is incidental to the Lot’s primary residential use; shall have no employees, customers or clients at the Lot; and shall be
approved by any municipal authorities having jurisdiction over the use. No commercial, industrial, recreational or
professional activity not permitted by the present zoning, other applicable laws and ordinances, and any Rules or Regulations
thereunder shall be carried on in any Lot at any time. If in the future, zoning regulations change so as to expand the scope of
activities permitted to be conducted within the Lots, application may be made by an Owner to the Board of Directors for
approval to commence the newly permitted use of his Lot. Each application shall be considered by the Board of Directors on
an individual basis. Once the Board of Directors has given its approval to a particular use of a Lot, it may not revoke the
approval so long as the nature and scope of the approved use remains unchanged.

C. Each Lot shall be occupied by no more persons than the maximum permitted by law for the Lots.

D. No part of the Property shall be used so as to create a nuisance or an unreasonable interference with the peaceful
possession and occupation or proper use of any other Lot or the Common Facilities.

E. Nothing shall be built, caused to be built or done in or to any part of the Property that will alter or cause any alteration to
the Common Facilities without the prior written approval of the Board of Directors.

F. Each Lot shall be maintained by its Owner or occupant in a safe, clean and sanitary manner and condition, in good order
and repair and in accordance with all applicable restrictions, conditions, ordinances, codes and any rules or regulations as
may be applicable hereunder or under law.

G. No Owner or occupant of any Lot shall carry on, or permit to be carried on, any practice which unreasonably interferes
with the quiet enjoyment and proper use of another Lot or the Common Facilities by the Owner or occupant of any other Lot,
or which creates or results in a hazard or nuisance on the Property.

H. To the extent maintenance is not specifically provided by the Residents Association, each Owner shall maintain his
19
Lot and Dwelling in a manner satisfactory to the Residents Association and in accordance with those additional covenants,
conditions, restrictions and Rules and Regulations which may apply to the Lot and Dwelling. In the event that a Lot or
dwelling shall not be so maintained, the Residents Association shall have the right to enter upon the Lot or Dwelling to
maintain the same, after giving the Owner at least thirty (30) days written notice, to cure any maintenance problems or
deficiencies and, in this event, the Residents Association shall have the right to assess the particular Owner for the cost of the
maintenance. The Residents Association by its Board of Directors shall have the right to establish rules and regulations
governing the maintenance of any Dwelling exterior and any Lot.

I. No Owner shall alter in any way any of the Common Facilities or change the exterior appearance of his Dwelling or Lot
(including, but not limited to, the exterior surfaces and color of the walls, decks, doors, garage doors, and lot landscaping) or
any other portion of the Property without the prior written approval of the Board of Directors and compliance with all
applicable provisions of this Amended and Restated Declaration, the By-Laws and any Rules and Regulations promulgated
by the Board of Directors.

Article XIV. Architectural Review as to Owners Lots and Dwellings

SECTION 14.01. Regulated Activities. No building, fence, deck, wall or other structure or improvement shall be
commenced, erected, installed or maintained upon the Owner’s Lot or Dwelling nor shall any exterior addition to or change
(including change of external color scheme) or alteration or addition be made to any Dwelling which alters the external
appearance of the Dwelling or the Lot prior to submitting an application for review and approval of the improvement by the
Board.

SECTION 14.02. Contents and Method of Submitting an Application. Each Owner shall submit by mail, to the
chairpersons of the Architectural Review Committee, scaled plans and specifications showing the nature, kind, shape, height,
materials, finish, colors and location of the Owner’s proposed changes, alterations or additions to the Lot or Dwelling. The
submission shall comply with all applicable codes, laws and ordinances.

SECTION 14.03. Architectural Review Committee.

A. The Committee shall be established and members appointed to the Committee as provided in the By-Laws. The
Committee may recommend conditions on any approval given.

B. The Committee shall have the right to request additional information, plans and materials concerning any proposed
alterations, additions and improvements.

C. The Committee will recommend approval, with or without conditions, or recommend disapproval within forty-five (45)
days from the date all plans and specifications, including all additional information, plans and materials which may be
requested by the Committee pursuant to Section 14.03 (b) have been submitted. Upon receiving the Committee’s
recommendation, the Board will approve or disapprove the application within 30 days.

D. The Committee shall review the plans to determine whether they are harmonious and compatible with the Lots and
Dwellings in the Community.

E. The Board of Directors or the Committee, with the approval of the Board of Directors, shall have the right to establish
design criteria and standards for alterations, additions and improvements within the Property.

F. The Committee shall recommend waivers from architectural design criteria and standards according to procedures and
subject to the conditions established by the Board of Directors.
20
 Article XV Compliance and Default

Section 15.01. Compliance and Default.

A. Each Owner shall be governed by and shall comply strictly with the terms, covenants, conditions and restrictions of this
Amended and Restated Declaration, the By-Laws and any Rules and Regulations.

B. The Board of Directors shall have the power to adopt, amend and enforce compliance with, any reasonable Rules and
Regulations relative to the operation, use and occupancy of the Lot, and the Common Facilities consistent with the provisions
of this Amended and Restated Declaration, including, but not limited to any enforcement procedures and penalties for
violations of this Amended and Restated Declaration, the By-Laws and any Rules and Regulations adopted pursuant thereto
which the Board of Directors shall deem appropriate. Any Rules and Regulations shall be adopted or amended, from time to
time, by means of appropriate resolutions duly approved by the Board of Directors in accordance with the By-Laws. A copy
of the Rules and Regulations and copies of any amendments thereto shall be delivered or mailed to each Owner and occupant
of a Lot promptly after the adoption thereof and shall become binding upon all Owners and occupants of Lots, their
successors and assigns.

C. Failure of an Owner to comply with any provision of this Amended and Restated Declaration, the By-Laws or any Rules
and Regulations adopted pursuant thereto shall entitle the Residents Association or Owners to the remedies provided in this
Amended and Restated Declaration, and also to the following relief, none of which shall be exclusive of any other remedies:

1. Suits: Failure to comply with the terms of this Amended and Restated Declaration, the By-Laws and any Rules and
Regulations adopted pursuant thereto, as they may be amended from time to time, shall entitle the Residents
Association or any aggrieved Owner to sue for the recovery of damages or for injunctive relief, or both. This relief
shall not be exclusive of other remedies provided by law.

2. Costs and Attorneys’ Fees: In any proceeding arising because of an alleged failure of an Owner to comply with
the terms of this Amended and Restated Declaration, the By-Laws and any Rules and Regulations adopted pursuant
thereto, as they may be amended from time to time, the prevailing party shall be entitled to recover the costs of the
proceeding and reasonable attorneys’ fees; provided, however, that no costs or attorneys fees may be recovered
against the Board of Directors in any action unless the court shall first expressly find the Board of Directors acted in
bad faith.

3. No Waiver of Rights: The failure of the Board of Directors, or any Owner to enforce any covenant, restriction or
other provision of this Amended and Restated Declaration, the By-Laws or any Rules and Regulations adopted
pursuant thereto, shall not constitute a waver of the right to do so hereafter.

SECTION 15.02. Complaint and Hearing Procedure; Actions by Owners. No Owner or occupant shall have the right to
object, challenge, commence any suit at law or in equity or take any other action under any act, power or authority now in
force or hereafter to be enacted except after following procedures established by the Board of Directors by rule or regulation
consistent with the provisions of this Section. The Board of Directors, or a committee appointed by the Board of Directors,
shall hear complaints from Owners or occupants of alleged violations of this Amended and Restated Declaration, (other than
violations with respect to Assessment obligations), the By-Laws and any Rules and Regulations of the Residents Association.
The Board of Directors, or a committee appointed by the Board of Directors, shall hold a hearing on any complaint within
thirty (30) days after the receipt by the Board of Directors of a formal notice of complaint from an Owner or occupant. A
decision shall be issued in writing by the Board of Directors within ten (10) days after the conclusion of the hearing. The
21
Board of Directors shall have the right to establish various rules and procedures governing the operation and administration
of the complaint and hearing process and the enforcement of the Association documents and Rules and Regulations. Unless
the internal remedies provided by this Section and any Rules and Regulations promulgated by the Board of Directors shall be
expressly waived by the Residents Association, or the Residents Association fails or refuses to act, no action at law or in
equity shall be commenced by any Owner or occupant until this internal remedy is pursued to exhaustion. Any action by an
Owner or occupant against any other Owner or occupant arising out of any term covenant or condition contained in the By-
Laws, this Amended and Restated Declaration or any Rules and Regulations adopted pursuant thereto shall be subject to the
same procedures. In hearings before the Board of Directors, or a committee appointed by the Board of Directors, all parties
shall be entitled to be represented by counsel.

Article XVI Indemnification of Officers, Directors and Committee Members.

SECTION 16.01. Indemnification of Officers, Directors and Committee Members. The Residents Association shall
indemnify every Director, officer and committee member, his heirs, executors and administrators, against all loss, costs and
expenses, including counsel fees, reasonably incurred by him in connection with any action, suit or proceeding to which he
may be made by a party, by reason of his being or having been a Director, officer or a committee member of the Residents
Association, except as to matters as to which he shall be finally adjudged in the action, suit or proceeding to be liable for
recklessness or willful misconduct. In the event of a settlement, indemnification shall be provided only in connection with
those matters covered by the settlement as to which the Residents Association is advised by independent counsel that the
person to be indemnified has not been guilty of recklessness or willful misconduct in the performance of his duty as a
Director, officer or committee member in relation to the matter involved. The foregoing rights shall not be exclusive of other
rights to which the Director, officer or committee member may be entitled. All liability, loss, damage, costs and expenses
incurred or suffered by the Residents Association by reason or arising out of or in connection with the foregoing
indemnification provisions shall be treated by the Residents Association as Common Expenses; provided, however, that
nothing contained in this Article XVI shall obligate the Residents Association to indemnify any Member of the Association,
who is or has been a Director, an officer or a committee member with respect to any duties or obligations assumed or
liabilities incurred by him under and by virtue of his membership in the Residents Association.

Article XVII. Amendments

SECTION 17.01. Amendments.

A. This Amended and Restated Declaration may be amended in the following manner:

1. By Resolution: An amendment may be proposed by either the Board of Directors or by at least twenty (20%)
percent of the Members. No proposed amendment shall be effective unless it has been adopted by the affirmative
vote of at least two-thirds (2/3) of the Members. Notice of the subject matter of a proposed amendment shall be
included in the notice of any meeting of the Residents Association at which a proposed amendment is to be
considered, and shall be served upon all Members in the manner hereinafter provided for service of notices.

2. By Agreement: In the alternative, an amendment may be made by an agreement signed and acknowledged by at
least two-thirds (2/3) of the Members in the manner required by the execution of a deed, which agreement may be
executed in counterparts, and this amendment shall be effective when a certificate prepared and executed in
accordance with Subsection (b) below is recorded.

B. A copy of each amendment shall be attached to or included with a certificate, certifying that the amendment
22
was duly adopted, which certificate shall be executed and acknowledged by the officers of the Residents Association with the
formalities of a deed. The amendment shall be effective when the certificate and copy of the amendment are recorded in the
Office of the Recorder of Deed in and for Montgomery County, Pennsylvania.

C. If any amendment of the Amended and Restated Declaration or the By-Laws is necessary in the judgment of the Board
of Directors to change, correct or supplement anything appearing or failing to appear therein which is incorrect, defective or
inconsistent with anything in either this Declaration or the By-Laws, or if an amendment is necessary to conform to the
requirements of FNMA, FHLMC, HUD or VA or other institutional purchasers, guarantors or insurers of first mortgage liens
with respect to the Community, the Board of Directors may at any time and from time to time effect an appropriate corrective
amendment without the approval of the Owners or any Eligible Mortgagees upon receipt by the Board of Directors of an
opinion from counsel to the effect that the proposed amendment is permitted by the terms of this sentence. Each amendment
shall be effective upon its recording pursuant to Section 17.01(b) hereof.

Article XVIII. Duration and Termination

SECTION 18.01. Duration and Termination. The covenants and restrictions of this Amended and Restated Declaration
shall run with and bind the land, shall inure to the benefit of and be enforceable by the Association , or the Owner of any land
subject to this Amended and Restated Declaration, their respective legal representatives, heirs, successors, and assigns
perpetually, unless an instrument terminating this Amended and Restated Declaration signed by the then Owners of two-
thirds (2/3) of the Lots and approved by the governing body of Upper Gwynedd Township, has been recorded; provided,
however, that no such agreement to terminate shall be effective unless made and recorded six (6) months in advance of the
effective date of such termination, and unless written notice of the proposed agreement is sent to every Owner at least ninety
(90) days in advance of any action taken.

SECTION 18.02. Notices. Any notice required to be sent shall be deemed to have been properly sent when mailed, postpaid,
to the last known address of the person who appears as Member or Owner on the records of the Association at the time of
such mailing.

Article XIX. Provisions Benefiting Upper Gwynedd Township

SECTION 19.01. Upper Gwynedd Township as Beneficiary. Upper Gwynedd Township, Montgomery County,
Pennsylvania (the “Township”) shall be a third party beneficiary of this Amended and Restated Declaration requiring the
Residents Association to preserve and protect the open space (as defined in the Pennsylvania Municipalities Planning Code
and the Upper Gwynedd Township Subdivision and Land Development Ordinance) portions of the Common Facilities. The
Township shall have the right to compel the preservation and protection of the open space areas and, in the event of the
Residents Association’s failure to fulfill these obligations, the Township, after notice and the opportunity to cure (as provided
in the Municipalities Planning Code), shall have to right to perform these obligations and be reimbursed for all expenses
incurred. The Township shall have a cause of action against the Association and the Lot Owners for payment of the
Assessments levied against them by the Township for the cost of preservation and protection of these open spaces.

SECTION 19.02. Storm Water Management Facilities. Specifically, maintenance of storm water management facilities,
including without limitation swales, recharge areas and underground pipes and conduits, whether or not same are located on
individual lots, shall be the responsibility of the Residents Association at the sole cost and expense of the Residents
Association. In the event that the Residents Association shall fail to properly discharge its responsibility with regard to the
storm water management facilities, the Township of Upper Gwynedd shall have the right, but not the obligation, after written

23
notice to the Residents Association to enter upon the property and perform the required maintenance and to lien the property
of the Association for reimbursement of costs expended.

SECTION 19.03. Maintenance of Open Space. In the event the open space as defined in Section 19.01 hereof is not
properly maintained in accordance with the standards and provisions of this Amended and Restated Declaration, Upper
Gwynedd Township, following thirty (30) days written notice to the Residents Association requesting correction as to any
failure on the part of the Association to adequately maintain the open space in accordance with the terms of this Amended
and Restated Declaration, shall have the right of entry on the open space to correct such deficiencies and maintenance and
shall have the further right to reimbursement from the Association for any costs incurred therewith. In the event the Residents
Association fails to make payment to Upper Gwynedd for the costs of such maintenance, the Township of Upper Gwynedd
may proceed by action at law or equity to secure redress and reimbursement to include attorneys’ fees and costs.

SECTION 19.04 Approval for Amendment. The approval of the governing body of Upper Gwynedd Township shall be
obtained as to any amendment affecting the rights of Upper Gwynedd Township as set forth in the this Article XIX.

Article XX. General Provisions

SECTION 20.01. Severability. If any provisions of this Amended and Restated Declaration are determined to be invalid, that
determination shall not affect the validity or effect of the remaining provisions hereof, the By-Laws or any Rules and
Regulations, all of which shall continue in effect as if the invalid provisions had not been included herein.

SECTION 20.02. Headings. The headings herein are for reference purposes only and shall not affect the meaning or
interpretation of this Amended and Restated Declaration.

SECTION 20.03. Effective Date. This Amended and Restated Declaration shall become effective one hundred and eighty
(180) days after the date of its recording.

SECTION 20.04. Binding. This Amended and Restated Declaration shall, inure to the benefit of and shall be binding upon
the Members, their successors or assigns.

SECTION 20.05. Construction. Number and gender, as used in this Amended and Restated Declaration, shall extend to and
include both singular and plural and all genders as the context and construction require.

IN WITNESS WHEREOF, two thirds (2/3) of the Lot owners of the Gwynedale Residents’ Association have set their hands
and seals as affixed hereto.

24
APPROVAL OF AMENDMENT TO DECLARATION OF GWYNEDALE RESIDENTS ASSOCIATION

The undersigned, being the Owners of ________________________________

Address of unit
hereby approve the Amended and Restated Declaration of Covenants, Conditions, Restrictions, Easements, Charges and
Liens of the Gwynedale Residents Association in the form to which this consent is attached (the “Amended and Restated
Declaration”).
Section 1. By our signatures hereto, the undersigned is approving the repeal of the following documents recorded by the
Cutler Group, Inc.: The Declaration of Covenants, Conditions, Restrictions, Easements, Charges and Liens dated June 30,
1987 and recorded in the Office of the Recorder of Deeds of Montgomery County on August 27, 1987 in Deed Book 4849 at
pages 611et sec; the Amendment to the aforesaid Declaration dated September 22, 1987 and recorded in the Office of the
Recorder of Deeds of Montgomery County in Deed Book 4851 at pages 2132 et sec; and the Declaration of Covenants,
Conditions, Easements and Restrictions for Gwynedale Townhouse Development dated June 30, 1987 and recorded in the
Office of the Recorder of Deeds of Montgomery County on August 27, 1987 in Deed Book 4849 at pages 591 et seq.
Section 2. The Amended and Restated Declaration of Covenants, Conditions, Restrictions, Easements, Charges and Liens
hereby approved, restates the essential terms of the Declarations referred to in Section 1 hereof; updates the Declarations to
incorporate provisions of the Pennsylvania Uniform Planned Community Act, 68 Pa. CSA. 5101 et sec.; and provides the
authority and mechanisms necessary to the proper governance of the Gwynedale Residents Association.
Section 3. The effect of this approval is to approve each of the provisions of the Amended and Restated Declaration as
though fully set forth herein at length.
Section 4. This Amendment may be executed in any number of counterparts, each of whom shall have the force and effect of
an original.
IN WITNESS WHEREOF, this Amendment has been approved by the written consent of not less than 2/3 (154) owners of
lots in the Gwynedale Community and the governing body of Upper Gwynedd Township as evidence by their signatures
hereto made in accordance with the general provisions Section 1 of the Declaration of Covenants, Conditions, Restrictions,
Easements, Charges and Liens for Gwynedale Residents Association and Article V, Section III of the Declaration of
Covenants, Conditions, Easements and Restrictions for the Gwynedale Townhouse Development.

_______________________ ___________________________

OWNER’S SIGNATURE OWNER’S SIGNATURE

_______________________ ___________________________

PRINT NAME PRINT NAME

COMMONWEALTH OF PENNSYLVANIA :

:ss.

COUNTY OF MONTGOMERY :

On this, the _____ day of ______________, 200_, before me, a Notary Public for the Commonwealth of
Pennsylvania, the undersigned officer, personally appeared _____________ and ________________, known to me
(satisfactorily proven) to be the persons whose names are subscribed to the above instrument, and acknowledged that they
executed the same for the purposes therein contained. I hereunto set my hand and official seal.

_______________________

Notary Public :

25
 RULES AND REGULATIONS

The Board of Directors of The Gwynedale Residents’ Association adopts the following Rules and Regulations:

1. Except for a single non-illuminated address number or name sign for a Lot, no sign may be erected by any Owner on or
in a Lot or Dwelling (visible from the outside of the Dwelling) or any of the Common Facilities, without the prior written
approval of the Board of Directors. For Sale signs, not exceeding four (4) square feet may be placed on a lot during a period
when the Lot is being offered for sale. They must be removed not mo re than five days after the date of settlement.
Subcontractors may erect signs while working on the premises, but they must be removed upon completion of the
subcontractors’ work.

2. No Owner or occupant may obstruct the Common Facilities in any way. No Owner or occupant may store anything in or
on the Common Facilities without the prior written approval of the Board of Directors.

3. No animals, livestock, fowl or poultry of any kind shall be raised, bred or kept on any Lot except that dogs, cats or other
commonly accepted household pets may be kept on Lots provided they are not kept, bred or maintained for any commercial
purpose. No pet shall be allowed to cause or create any nuisance or other unreasonable disturbance. No pets shall be
permitted to run loose or uncontrolled in or on the Common Facilities or on any Lot. Pet owners must immediately clean up
any waste left by pets anywhere on the Property, including the owner’s lot.

4. Trash, garbage and other waste shall be kept in sanitary containers or collection bags, and in a clean and sanitary
condition. These containers shall be placed at the curb for collection only on the night before or the day these refuse materials
are to be collected. Empty containers shall be removed the day of collection and stored inside.

5. No Owner, occupant or other person shall leave any non-operating vehicle, a vehicle not currently registered and
licensed or a vehicle not having a valid and unexpired state motor vehicle inspection sticker on or about the Property, except
if entirely enclosed in the garage located on the Lot.

6. No motor homes, commercial vans, mobile homes, trailers, boats, motorcycles, snowmobiles, trail bikes or any form of
similar vehicle shall be parked on the Property. No commercial vehicles or trucks specifically adapted for commercial use or
having lettering identifying a business shall be parked on the Property, except on a day-to-day temporary basis in connection
with repairs, maintenance or construction work. Vans, motor homes, trailers, boats, motorcycles, snowmobiles, trail bikes or
any form of similar vehicle and commercial vehicles or trucks specifically adapted for commercial use or having lettering
identifying a business may be parked entirely within garages located on a Lot with garage doors kept closed except for entry
and exit. Commercial vehicles or trucks, driven by permanent residents of Gwynedale, specifically adapted for commercial
use or having lettering identifying a business, shall be permitted to be parked in one of three parking lots on Gwynedale Way,
designated and approved by the Board of Directors for such purpose.

7. No motor vehicle, including, but not limited to, mini-bikes and motorcycles, may be driven on the Property (other than
on paved streets and driveways) by any Owner, occupant or guest.

8. No swimming pools may be erected or installed on any Lot.

9. No tents, storage tanks or accessory building or structures shall be erected or permitted to remain on any Lot.

10. No Owner may store anything on the front porch, patio or deck; provided, however, that patio or porch furniture may be

26
placed on these areas but no barbecue grills may be kept or used on the front porch.

11. No exterior storage of personal property is permitted on any Lot.

12. No Owner of any Lot shall allow the lawn grass to grow at any time to a height in excess of six (6) inches.

13. Satellite dishes may only be installed in accordance with the Federal Telecommunications Act of 1996, as amended.

27
GWYNEDALE RESIDENTS ASSOCIATION ENFORCEMENT PROCEDURE

1. REPORTING VIOLATIONS

All complaints concerning violations of the rules or of any provision of the Declaration or the Bylaws must be in writing. The
letter or Notice of Violation Form (see exhibit A) should be sent to the Board of Directors and must be signed by the owner
or the tenant. The complaint must be specific in details so that the Board can determine that an investigation is warranted.

2. INVESTIGATION

The complaint will be investigated by a member of the board or a member of the committee concerned to determine that the
complaint is justified and that a violation exists and must be corrected.

3. VIOLATION NOTICE

When an authorized person determines that a violation requires correction, the Association will send a written notice to the
owner and a copy to the tenant, where applicable, requesting him or her to correct the matter within 10 days in order to avoid
a penalty. The owner or tenant cited will be advised in the violation notice that he or she has the right to a hearing before the
Board. If requested, the request must be in writing and received within 10 days of issuance of the Notice.

4. FINES AND PENALTIES

If the owner or tenant cited in the violation notice makes a written request for a hearing within the 10-day period, a hearing
will be scheduled before the Board. A hearing notice will be mailed to the member. The owner or tenant cited will be entitled
to present evidence or an explanation as to why he or she believes no violation has occurred. The Board or other appropriate
person may present evidence or an explanation to substantiate the violation cited. After consideration of the matters
presented, the Board will decide whether a violation has occurred and either dismiss the violation or impose a fine. Failure to
appear will result in a fine as described below.

If the owner or tenant does not comply within the 10-day period and fails to request a hearing, a fine will be automatically
assessed and the Association will mail a letter advising of the amount of the fine. In most instances the fine will be in
accordance with the schedule shown in exhibit B. The Board has full authority to establish fines in accordance with the
seriousness of the violation. The fine (amount assessed) is due payable upon receipt of the notice and will be collected in the
same manner as assessments. Homeowner privileges in the Association may also be revoked or suspended if as a result of a
hearing, the member was found in violation, the member did not come into compliance and or pay the fine, whichever is
applicable.

5. LEGAL ACTIONS

In the event that a violation is not corrected and the fine is not paid, the Board will take legal action to obtain payment of the
fine and compliance with the regulation. The following costs will be assessed: enforcement costs including the court costs,
attorney's fees, etc.

A judgment awarded by the Court which remains unpaid constitutes a lien on the property

28
Appendix A

Gwynedale Residents Association

Notice of Violation Form - General Complaint Form

Date: ___________________

To: Board of Directors

Gwynedale Residents Association
1142 Keats Court
Lansdale, PA 19446

Attention: Board of Directors

Subject : 1.______ A violation of the rules & regulations requiring action by the Board.

2.______ A complaint regarding the management of the Gwynedale Property.

Reference: Rules & Regulations, By-Laws, and Declaration

I call your attention to the following violation or problem:

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

Refer to the Rules & Regulations, By-Laws, or Declaration for the specific information required. Please provide name and
address of the homeowner or tenant committing the violation and the date the violation was observed.

Submitted by:_____________________________

Address:________________________ Phone Number:______________________

Signature:_______________________ Date:_______________________

29
Appendix B

GWYNEDALE RESIDENTS ASSOCIATION

POLICY ON VIOLATIONS AND FINES

When a owner or tenant receives a FIRST NOTICE AND WARNING LETTER, the owner or tenant must correct or
remove the violation within ten (10) days, or within the time frame specifically stated in the documents of the Association as
cited in the letter. Should the owner or tenant fail to correct or remove the violation within that prescribed time, the Board
will take one of the following actions depending on the nature of the violation.

CONTINUING VIOLATION - If the violation is of a continuing nature, such as parking of an unauthorized vehicle or an
unauthorized change to the exterior of a townhouse, the owner or tenant will be fined $10 per day and costs. The daily fine
will be cumulative until such a time as the violation is corrected. If after 30 days the violation is not corrected, the Board of
Directors may exercise its authority as defined in the Declaration and will proceed with legal remedies. Such legal action
includes, but is not limited to the obtaining of a judgment for the unpaid fines and placing a lien against an owner's
townhouse. All legal fees, interest, court costs, other fees, and all other monies to which the association is entitled under the
laws of the Commonwealth of Pennsylvania shall be assessed to the owner or tenant.

INDIVIDUAL VIOLATION - If the violation is for a singular occurrence, such as allowing a pet to go unleashed on
association property, failure to remove and dispose of a pet's excrement (solid waste), or a non continuous parking violation,
the owner or tenant will be fined $100 and costs.

In the event that the Board of Directors assesses a fine, the owner or tenant will be notified by certified and regular mail. The
notice shall state the amount of the fine, the date the violation began or occurred, and all other pertinent information so that
the owner or tenant will understand why his/her conduct was a violation.

30
Appendix C

GWYNEDALE RESIDENTS ASSOCIATION

NOTICE OF VIOLATION

DATE:

NAME AND ADDRESS OF VIOLATOR:

NAME AND ADDRESS OF UNIT OWNER:

(if different from Violator)

Notice is hereby given that you are ... (i.e., permitting your pet to run unrestrained on the common grounds and to defecate on
the common grounds.)

1. The above described conduct is in violation of Section ______ of the (Declaration/By-Laws/Rules and Regulations).

2. The penalty for violation of Section______________ is___________________. In addition, the Residents Association
documents authorize the collection of attorneys' fees and costs incurred in any action to collect fines, the bringing of a Court
action including an action in conjunction to enforce compliance with the Declaration, By-Laws and Rules and Regulations.
Additionally, fines, if not paid, become part of your assessment and may be collected in the same means as the collection of
assessments.

3. However, if the violation cited above is corrected and all damage rectified within 10 days of the date of notice, no further
action may be taken and no finding of a violation may occur.

4. You have the right to a hearing. Please see paragraph 4 of the attached Gwynedale Residents Association Enforcement
Procedure. If requested, the Board of Directors of the Residents Association will hold a hearing for the purpose of
determining whether a violation has occurred, whether it has been corrected and whether and how much of a fine shall be
imposed. You have a right to appear at the hearing in person, or in writing and/or through legal counsel to contest the
violation and to present any relevant evidence as to whether the violation charged has occurred and/or has been corrected. If
you request a hearing and fail to attend, a determination shall be made as to whether a violation has occurred whether or not
you appear at the hearing.

This violation notice is issued by the ___________________ of the Gwynedale Residents Association this ________ day of
____________________, 200_ .

GWYNEDALE RESIDENTS ASSOCIATION

31
Exhibit A

Highway Engineering Sewerage and Sewage Treatment

Structural and Foundation Design Municipal Engineering
Boundary Surveys Real Estate Developments
Traffic Engineering and Reports Topographic Surveys
Erosion and Sediment Control

URWILER AND WALTER, INCORPORATED

. ENGINEERS AND SURVEYORS
SUMNEYTOWN PIKE
SUMNEYTOWN, PA 18084
(215-234-4562)
Refer To File No: 85297
35-160

June 22, 1987

Description of lands of The Cutler Group, Inc. as shown on Plan of Survey and Topography prepared for The Cutler Group,
Inc. by Urwiler & Walter, Inc. dated August 16, 1985, last revised January 17, 1986.

ALL THAT CERTAIN tract of land situate in the Township of Upper Gwynedd, County of Montgomery, Commonwealth of
Pennsylvania, bounded and described as follows, to wit:

BEGINNING at a point on the Northeasterly sideline of Sumneytown Pike (25 feet from its centerline), said point being located
609.71 feet more or less, measured Southeastwardly from the intersection of said sideline with the Southerly right-of-way line
of Valley Forge Road; thence leaving said sideline and extending along lands of the North Penn Market Place the following
two (2) courses and distances: (1) North 72 degrees 25 minutes East 320.51 feet to a point (2) along the Northwesterly
sideline of a 40 foot wide utility right-of-way North 39 degrees 58 minutes 50 seconds East 564.08 feet to a point; thence
extending along lands of Falmar Limited the following nine (9) courses and distances: (1) extending into a 40 feet wide utility
right-of-way (PECO) South 52 degrees 02 minutes 00 seconds Eas t 15.32 feet to a point in the center line of a 20 foot wide
sanitary sewer easement (2) through said right-of-way and along said easement North 42 degrees 09 minutes 40 seconds
East 3.81 feet to a point (3) partly through said right-of-way and along said easement North 73 degrees 31 minutes 01 second
East 317.00 feet to a point (4) along the same South 73 degrees 18 minutes 35 seconds East 117.46 feet to a point (5) along
the same North 85 degrees 20 minutes 41 seconds East 400.62 feet to a point (6) along the same North 84 degrees 25
minutes 25 seconds East 399.25 feet to a point (7) along the same South 72 degrees 23 minutes 05 seconds East 401.18
feet to a point (8) along the same North 81 degrees 01 minute 55 seconds East 325.91 feet to a point (9) along the same
North 78 degrees 58 minutes 55 seconds East 105.37 feet to a point; thence extending South 33 degrees 13 minutes East
57.62 feet to a point on the Northeasterly sideline of Gwynedd Avenue (paper street); thence extending along lands of various
owners (Lansdale Gardens) South 36 degrees 01 minute 30 seconds West 1,052.09 feet to a point in line of lands of the
Girard Bank; thence extending along said lands the following three (3) courses and distances: (1) North 49 degrees 08
minutes West 332.70 feet to a point (2) South 37 degrees 26 minutes 23 seconds West 982.49 feet to a point (3) South 35
degrees 16 minutes West 222.30 feet to a point on the aforementioned sideline of Sumneytown Pike; thence extending along
said sideline North 47 degrees 30 minutes 24 seconds West 1,544.75 feet to the point and place of beginning.

CONTAINING: 53.142 acres of land more or less.

COMMONWEALTH OF PENNSYLVANIA :

ss

COUNTY OF MONTGOMERY :

ON THIS, the 30th day of June, 1987 before me, a Notary Public, the undersigned officer, personally appeared David
Cutler, who acknowledged himself to be the President of The Cutler Group, Inc., and that he as such officer executed the
foregoing Declaration for the purposes therein contained.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

JILL H. SWEENEY
__________________________________
NOTARY PUBLIC

JILL H. SWEENEY, Notary Public

Abington, Montgomery Co., Pa.
My Commission Expires April 29, 1991

32
Exhibit B

Approval for Upper Gwynedd Township

This is to certify that the Board of Supervisors of Upper Gwynedd Township, Montgomery
County, Pennsylvania at a public meeting voted to APPROVE the Amended and Restated Declaration of
Covenants, Conditions, Restrictions, Easements, Charges and Liens for the Gwynedale Residents’
Association in the form to which this approval is attached.

Secretary, Township of Upper Gwynedd

By: _______________________________

COMMONWEALTH OF PENNSYLVANIA :

:ss.

COUNTY OF MONTGOMERY :

On this, the _____ day of ______________, 200_, before me, a Notary Public for the Commonwealth of
Pennsylvania, the undersigned officer, personally appeared _____________ and ________________, known to me
(satisfactorily proven) to be the persons whose names are subscribed to the above instrument, and acknowledged that they
executed the same for the purposes therein contained. I hereunto set my hand and official seal.

_______________________

Notary Public :

33
 PREFARED BY: Clemons Richter & Reiss, F.G.
RETi.JRN TO 107 East Oakland Avenue
Doylestown, PA 189CI1
(215) 3l,8-1V76
/^FlIl
wrtY ttif see at{eehed

Affi EHffi Effi

T"1$ffii#9ffi,*HRg?-,ffi8ff5fi b:**NOF
EASEMENTS C}IARGES AND LIEhIS FOR
GWYNEDALE RfiSIBENTS,{SSOCIATIOh{

Wh{EREAS, Gurynedale Residents Association Is a Planned Community

golerned by the Pennsylvania Unifonn Flanned Community Act
{68 Pa.C.$.A. $ecticni
5101 et seq the "Acf") and an Amended and Restaterj Eeciaration of Covenants,
Conditions, Restriction$, Easernents, Gharges and t-iens ("Declaration"), filed with the
Office of the Reconder of Deeds of Montgomery Gounty at peeO Boo( Sggg Fug*
$14 et seq., to manage and administer the "{Upp?r
aftairs of tfre Association, located in
Gwynedd Township, fvtrontgonnery County, pennsylvania.

WHEREA$, Article Xlll, Sectisn tr3.01 of the Decfaration eets fonth nestrtctions
conceming use and occupancy of each Lot and the Froperty.

WI{EREAS, in_onder to provide for the more efficient, more organized and less
intrusive collection of trash and recycling seruims, tfie Owners ha;e approved this
Arnendment,.lirnitlng all Owners to rtlize a single, comrnunigr-uride traalr,and recycling
services vendor to be chosen by the Board of Directors.

hIOW TI{EREFORE, by a vote of at least sixty-seven percent (62%] of the

Ouuner$, the Declaration is hereby arrrended as follows:

I. Artiele XII[, Seetion 13"$'!of the Beclaratiom is hereby anmended to add

the followi$S new parasreph 6rJIe:

J" The Board of Directors may select and impose upon each Owner,
the utilizatiol CIf a single comnrunity-wide trash and recycling services
vendor. ln that event, CIwners shall, at their own cost ariO ei[ense, be
required. to contract only with the trash and recycling servic6s vendor
chosen by the Association; other vendors shall be 6xduded from the
Property.

il'
lf thare is any imeonsistency between tlre Declaratlonn Bylawo
Rulee and Regufatl"ons of Gwynedile Residenk Association and and this
Amendment the brms of this Anrendmentshall sontro!"