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

ARTICLE IV

FUNCTIONS OF SUB-ASSOCIATION

Section 1. Required Services.
The Sub-Association shall as required provide the following services:

1. Cleanup, landscaping, landscape maintenance, improvement maintenance and repairs of and to:

(1) All signage (including lighting thereof and supplying electricity for this purpose) of Sun Valley P.U.D. located at the entrance or entrances of the Properties from public streets outside of Sun Valley P.U.D., including but not limited to maintenance and repair of any signs, planter boxes, and landscaping ancillary thereto constructed by the Developer. If such signage is constructed on property owned by or dedicated to this Sub-Association or property which becomes so owned or dedicated, the Sub-Association shall pay all tangible personal property taxes, if any, assessed against such signage.

(2) The main roads which the Developer has projected in the Development Plan for the Properties, as such projection may be implemented or modified, including additional main roads and any gatehouses constructed thereon by the Developer, any Developer with the approval of the Company, or this Sub-Association with the approval of the Developer.

(3) Any common areas and common properties, the responsibility for maintenance of which has been assigned to this Sub-Association. This includes common areas and common properties dedicated to this Sub-Association, or otherwise transferred, which, in the opinion of the A.R.C. (defined below), have been completed and require periodic upkeep for their maintenance. The Sub-Association shall not be required, however, to maintain lots on which Family Dwelling Units will be constructed; all of which shall remain the responsibility of the Developer until said properties are conveyed to other Owners. Notwithstanding the foregoing, should this Sub-Association fail to maintain the surface water management portions of the common areas for which responsibility for maintenance has been assigned to it, the Master Association shall be responsible for the operation and maintenance of said surface water management areas, as more particularly set forth in Section 6 of this Article and in Article X, Section 16, of this Sub-Declaration. No delegation or assignment of responsibility shall relieve the Master Association of any of its primary obligations imposed upon the Master Association by the South Florida Water Management District or any other Governmental Agency. The Master Association shall have recourse against this Sub-Association for such failure.

2. The staffing and operation of any gatehouses described in this Section, unless said function has been delegated to another Sub- Association by the Company or a Developer.
3. In the event the Developer constructs any Recreational Facilities and conveys, leases, or dedicates any one or more of the same to this Sub-Association, the Sub-Association shall accept said conveyance, lease, or dedication, and operate and maintain the said Recreational Facilities. Said Recreational Facilities either (1) may be open to all Owners, in which event all Recreational Expenses associated therewith shall be included in the Sub-Association's budget, or (2) may be open on a membership basis only to those residents of the Properties, and to those other persons permitted by the Board of Directors of the Sub-Association, who desire membership in such Recreational Facilities, to the extent such memberships are available on a first come, first served basis, in which latter event Recreational Expenses shall be paid by membership subscription, or (3) a combination of both, as determined by the Board of Directors of the Association.
4. Cleanup, landscaping, landscaping maintenance and other maintenance of all lands (including any easements) owned or dedicated to any governmental agency or private utility which are located within or in reasonable proximity to the Properties, to the extent permitted or required by such agency or utility and to the extent that their deterioration would adversely affect the appearance of the Properties as a whole and the standard of maintenance by said agency or utility is less than that desired by the Sub-Association. The Sub-Association shall adopt standards of cleanup, landscaping, maintenance and operation required, by this and other subsections within this Section 1 which are, at least, as stringent as those adopted. and/or followed by other developments similar to Sun Valley P.U.D. The Developer shall, in its reasonable discretion, determine whether such standards adopted by the Sub-Association meet the requirements herein.
5. Cleanup, landscaping, landscaping maintenance and other maintenance of any real property located within Sun Valley P.U.D. upon which the Sub-Association has accepted an easement for said maintenance by duly recording an instrument granting said easement to the Sub-Association executed. and delivered, by the Owner of said property to the Sub-Association.
6. Taking any and all actions necessary to enforce all covenants, conditions, and restrictions affecting the Properties and to perform any of the functions or services delegated to the Sub-Association in this Sub-Declaration, any Covenants, Conditions, or Restrictions applicable to the Properties, the Articles, Supplemental Sub-Declarations or By-Laws.
7. To conduct business of the Sub-Association, including but not limited to administrative services such as legal, accounting, financial, and communication services informing Members of activities, notice of meetings and other important events.
8. To purchase general liability and hazard insurance covering improvements and activities on those portions of the Properties subject to the maintenance obligations of the Sub-Association as provided in this Section 1, Common Property, and Recreational Facilities, if any.
9. To establish and operate the Architectural Review Committee as hereinafter defined when the Sub-Association assumes this responsibility as hereinafter provided.
10. Lighting, installed by the Developer, of those roads, sidewalks, and walking paths throughout the Properties subject to maintenance responsibility of the Sub-Association by Section 1 of this Article.

Section 2. Authorized Services.
The Sub-Association shall be authorized, but not required, to provide the following services:

1. Installation and maintenance, including supplying electricity for, lighting of those roads, sidewalks and walking paths throughout the Properties subject to maintenance responsibility of the Sub-Association by Section 1 of this Article, as to which the Developer has not installed lighting equipment.
2. Fire protection and prevention.
3. Garbage and trash collection and disposal.
4. To conduct recreation, sport, craft, and cultural programs of interest to Members, their families, tenants and guests.
5. To support the operation of transportation facilities serving the Properties.
6. To construct improvements on any property transferred to it or dedicated to its use for Recreational Facilities and the common areas subject to its maintenance responsibility as may be required to provide the services as authorized in this Section 2 of this Article.
7. Protection and security, including but not limited to the employment of security guards, maintenance of control centers for the protection of persons and property within the Properties.
8. Maintenance of electronic and other security devices, subject to the Developer's rights in this area as reserved in Section 4, Article VI of this Sub-Declaration.

Section 3. Obligation of the Sub-Association.
When, as and if the exclusive use of any Common areas, open spaces and Common Property are transferred to the Sub-Association, then the Sub-Association shall assume the obligations of the Master Association and be obligated. to (1) maintain all such Common Areas, open spaces and Common Property within the limits and boundaries of the Properties, and (2) carry out the functions and services specified in Section l of this Article to the extent such maintenance and services can be provided with the proceeds of annual and/or special assessments. The functions and services specified in Section 2 of this Article to be carried out or offered by the Sub-Association at any particular time shall be determined by the Board of Directors of the Sub-Association taking into consideration remaining proceeds of annual assessments and the needs of the Members of the Sub-Association. The functions and services which the Sub-Association is authorized to carry out or to provide pursuant to Section 2 of this Article may be added to or reduced at any time upon the affirmative vote of a majority of the Board of Directors.

Section 4. Mortgage and Pledge.
The Board of Directors of the Sub-Association shall have the power and authority to mortgage the property of the Sub-Association and to pledge the revenues of the Sub-Association as security for loans made to the Sub-Association, which loans shall be used by the Sub-Association in performing its functions.

Section 5. Conveyance to Sub-Association.
The Sub-Association shall be obligated to accept any and all leases, agreements granting exclusive uses, deeds of conveyance, easements, bills of sale delivered to it by the Company, the Developer, or the Master Association which deeds convey title to common areas, roadways, other rights of way or Recreational Facilities and ancillary property, or the exclusive use thereof.

Section 6. Surface Water Management System.
The Master Association has undertaken and must at all times maintain, in compliance with the rules and regulations promulgated by the South Florida Water Management District, appropriate drainage for surface water for the property covered by this Sub-Declaration and other lands. Such drainage system shall cover surface water in common areas, regular and storm drainage on dedicated streets and other rights of way, lake drainage and such other requirements as may be imposed by the South Florida Water Management District. The Master Association shall apply for and obtain such permits and licenses as may be required by the South Florida Water Management District for the property covered by this Sub-Declaration and for any future property which may be covered hereunder. The Master Association, at its own cost and expense, shall provide the Company and South Florida Water Management District with any and all plans and specifications, surveys, descriptive maps, and other documentation required for the maintenance of surface water as contemplated by this Section and shall give and grant to the Company, owners of adjacent land, Palm Beach County, The South Florida Water Management District, any and all easements and rights of way required to effect proper surface water management. All physical earth moving, landscaping, sloping, grading and other work required to be done on the property covered by this Sub-Declaration shall be done at the cost and expense of the Master Association except so much thereof as is hereby assumed by this Sub-Association. This Sub-Association assumes so much of that obligation as relates to the lands within the confines, boundaries or limits of the Properties. Should any earth moving, landscaping, sloping, grading and other work be interrelated with or required by the drainage plan and similar work of property owned by other sub-associations, condominium associations or other owners of land subject to the Master Declaration, the cost of such work will be apportioned between this Sub-Association and the person responsible for drainage on such land. The determination of appropriate percentage apportionment of any such work, if the same cannot be agreed to by the parties involved, shall be settled by arbitration as defined in the Florida Arbitration Code (Florida Statute 682.01 et seq.), This portion of this Section shall be deemed an arbitration agreement as defined in Florida Statute 682.01. By its approval of this Sub-Declaration, the Company and Master Association as well as the Developer and this Sub-Association shall be deemed a party hereto where appropriate. The purchasers of any lands adjacent or contiguous to the lands covered by this Sub-Declaration who take title subsequent to the recording of this Sub-Declaration shall similarly be deemed a party where appropriate. By acceptance and approval of this Sub-Declaration, the Company and Master Association shall be obligated to obtain and cause to be filed of record a similar or identical provision in the Sub-Declaration of any owner, developer, home owner's association, condominium association or other person responsible for surface water management of lands presently subject to the requirements of the Master Declaration and the requirements of the South Florida Water Management District as they pertain to the properties covered by this Sub-Declaration.

PROVISO: Any maintenance equipment operating within the Florida Power and Light Company easement, located on the northern boundary of Sun Valley, shall be approved by Florida Power and Light Company prior to commencement of any maintenance activity within that easement.