SUB-DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF SUN VALLEY P.U.D I SUN VALLEY I-A SUN VALLEY II

ARTICLE II

PROPERTY SUBJECT TO SUB-DECLARATION

Section 1.Initial Property.
The real property which shall initially be held, transferred, sold, conveyed, given, donated, leased and/or occupied, and mortgaged, liened or encumbered, subject to this Sub-Declaration is as first described above. The Developer hereby reserves the right to review, modify, or amend the Development Plan from time to time in its sole discretion by adding or deleting real property, increasing or decreasing density, relocating, and reducing or increasing lakes and open or green areas. The Developer shall not be required to follow any predetermined order of improvement and development within the Properties; and may bring within this Sub-Declaration additional lands and develop them before completing the development of the Properties originally herein described. The Developer shall have the power to add to, subtract from or make changes in the Development Plan notwithstanding that such actions may alter the relative voting strength of the various types of memberships of the Sub-Association. The Developer also shall have the power to change the configuration, size and price of Lots and Units.

Section 2. Additional Property.
Additional property may become subject to this Sub-Declaration in the following manner:

1. Future Phases. The Developer shall have the right, without the consent of the Sub-Association to subject additional properties to this Sub-Declaration as future phases of Sun Valley. The additional property shall become subject to this Sub-Declaration by filing in the Public Records of Palm Beach County, Florida, a Supplemental Sub-Declaration of Covenants, Conditions, and Restrictions with respect to the additional property. The Supplemental Sub-Declaration may contain such complementary additions and modifications of the covenants, conditions, and restrictions contained in this Sub-Declaration as may be necessary or convenient, in the judgment of the Developer, to reflect the different character, if any, of the additional property.
2. Other Additions. Upon approval in writing of the Developer while it owns any portion of the Properties or additions thereto as provided above, or the Master Association, or the Company, or the Sub~Association, subject to the Palm Beach County Zoning Code, may allow the owner of any other real property who desires to subject such other property to this Sub-Declaration by filing a Supplemental Sub-Declaration of Covenants, Conditions, and Restrictions with respect to such additional property. Such Supplemental Sub-Declaration, if duly executed by both said owner, and the Developer or the Sub-Association if the Developer's approval is not required by this paragraph, and the Company or the Master Association if the Company's approval is not required by this paragraph, shall extend the operation and effect of this Sub-Declaration to such additional property. The Supplemental Sub-Declaration may contain any such complementary additions and modifications of the covenants, conditions and restrictions contained in this Sub-Declaration as may be necessary or convenient, in the judgment of the Developer or the Master Association, to reflect the different character, if any, of the added properties, but such modifications shall have no effect on the Properties described above except as may be consistent with this Sub-Declaration. The approval of the Company or Master Association shall not be unreasonably withheld.
3. Mergers. Upon a merger or consolidation of the Sub-Association with another association (which merger may only take place as permitted by the articles of incorporation and by-laws of both associations), the Sub-Association's properties, rights and obligations may, by operation of law, be transferred to the surviving or consolidated association, or, in the alternative, the properties, rights and obligations of the other association may, by operation of law, be added to the properties of the Sub-Association as a surviving corporation pursuant to a merger. Except as hereinafter provided, no such merger or consolidation shall revoke, change or add to the covenants, conditions and restrictions established by this Sub-Declaration.
4. Platting Additional Property. No additional property shall be added to the Properties pursuant to any of the provisions of this Section 2 unless the property to be added is included in a plat or amended plat recorded in the Public Records of Palm Beach County, Florida, in connection with the addition of such additional property.

Section 3. Planned Unit Development.
In accordance and to the extent required by Section 500.21 of the Zoning Code of Palm Beach County, Florida, as the same shall exist on the date this Sub-Declaration is recorded, any portion of any plat containing property subject to this Sub-Declaration and containing open space may not be vacated in whole or in part unless such entire plat is vacated. In the event any Family Dwelling Unit built under said Section 500.21 is destroyed or removed by or for any cause, or replaced, said Family Dwelling Unit shall be replaced with a Family Dwelling Unit of at least similar size and type, however, not exceeding the dimensions of the previous Family Dwelling Unit or otherwise conforming to the then prevailing, applicable Code.

Section 4. Deletion of Property.
Property may be deleted from the operation of this Sub-Declaration by amendment hereof pursuant to the provisions of Article X, subject to the provisions of Article I, Section 1, Paragraph P.

Section 5. Lakes and Beaches.
Pending final development of Sun Valley P.U.D., the Developer reserves the right to expand and contract the shorelines of any lakes or beaches thereby modifying the boundaries of same. No such modification shall affect the shoreline of property owned by a person other than the Developer without the consent of such owner. The exact location of any boundary between any lakes or beaches and any contiguous properties shall not become fixed until final development of all properties contiguous to and surrounding any lakes or beaches. Unless specifically provided in the deed from the Developer or in any declaration of covenants, conditions, and restrictions or similar instrument recorded by the Developer or approved by the Developer, no conveyance of the property abutting any beach, lake, or canal, and. without limiting the generality of the foregoing, shall include title to land outside the legal description contained on the deed and shall not include shorelines or submerged land. All interested persons are also called upon to take the notice of the Wellfield Zone of Influence set forth in Article VI, Section 1C.

Section 6. Property Lines.
The fee simple title to any parcel of land described as bounded by any street, lane, walkway, park, playground, lake, pool, canal, greenbelt, or any other common area which has not been dedicated or accepted by the public and the fee simple title to any parcel of land shown on any plat recorded or to be recorded as to any of the Properties abutting upon any such common property shall not extend upon such common property. The title to and use of such common property is reserved to the Developer to be conveyed or dedicated as provided elsewhere in this Sub-Declaration. All interested persons are also called upon to take notice that water levels in lakes, pools, canals and other water bodies vary in Florida from season to season and from time to time, and may also be affected by the Wellfield Zone of Influence; the shore line not being a demarcation or measure of Property Lines.