World Yacht Club Ltd  -  COVENANTS, CONDITIONS and RESTRICTIONS

ARTICLE IX - DUTIES OF THE ASSOCIATION
ARTICLE X - ADDITIONAL RESPONSIBILITIES

ARTICLE IX - DUTIES OF THE ASSOCIATION

Section 9.01. General Duties and Powers. In addition to the duties and powers enumerated in the Articles and Bylaws or elsewhere provided for in this Declaration, and without limiting the generality of such duties and powers, the Association acting through the Board shall:

(a) Enforce the provisions of this Declaration, the Articles, Bylaws, Association Rules and other instruments for the ownership, management and control of the Property by appropriate means.

(b) Pay any assessments which are or could become a lien upon any of the Common Area or any Association Property, unless separately assessed to the Owners. Assessments which are jointly assessed against Units and are or could become a lien upon the Common Area shall not be a Common Expense. Each Member who owns such a Unit shall reimburse the Association in advance for such Member's share of any costs to be incurred by the Association in connection with the payment of any such taxes or assessments. Such Member's share shall be in an amount which bears the same relationship to the total amount of such taxes and assessments as the price at which he purchased his Unit bears to the total purchase prices of all the Units included within the joint assessment (the purchase price for any such Unit which has not been sold by the Declarant as of the date such Member's share is calculated shall be the price, which shall be furnished by the Declarant, at which the Declarant is offering or would offer such Unit for sale). In the event such costs are not reimbursed to the Association by any such Member within fifteen days after the Association has furnished a statement for such costs, the Board shall - have the right to levy a Reimbursement Assessment against the Member to cover the costs. Any unpaid Reimbursement Assessments shall be a Common Expense.

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(c) Subject to the provisions of the Article entitled Insurance, contract for casualty, liability and other insurance on behalf of the Association.

(d) Subject to the limitations set forth in this Article, contract for goods and/or services for all Common Area, any Association Property, any Maintenance Area or the Association.

(e) Delegate to committees, officers, employees or agents any of the Association's duties or powers under this Declaration, the Articles, Bylaws or Association Rules; provided, however, no such delegation shall relieve the Association of its obligations to perform such delegated duty.

(f) Prepare and review budgets and financial statements for the Association as prescribed in the Bylaws.

(g) Formulate rules of operation of all Common Area, any Association Property and any Maintenance Area owned or controlled by the Association.

(h) Initiate and execute disciplinary proceedings against Members for violations of the provisions of this Declaration, the Articles, Bylaws and Association Rules in accordance with any procedures set forth in such documents.

(i) Enter upon any Unit or Exclusive Use Common Area as necessary in connection with construction, maintenance or emergency repair for the benefit of any of the Common Area, any Association Property or the Owners in common.

(j) Except as otherwise may be provided in the Section entitled "Repair and Maintenance by Owners", maintain, control, manage, repair, replace and reconstruct (subject to the provisions of the Article entitled "Destruction") all Common Area in a neat, safe, attractive, sanitary and orderly condition. Without limitation, the Association acting through the Board shall:

(i) Maintain the exteriors of all Units in good condition and repair and in such a manner as to enhance their appearance and place such exteriors in an attractive, neat and orderly condition.

(ii) This section has been struck and is not applicable.

(iii) This section has been struck and is not applicable.

(iv) This section has been struck and is not applicable.

(k) This section has been struck and is not applicable..

(1) This section has been struck and is not applicable.

(m) This section has been struck and is not applicable.

(n) Negotiate and enter into contracts with First Mortgagees and First Mortgage insurers and guarantors as may be necessary or desirable to facilitate the availability of loans secured by First Mortgages within the Property.

(o) Subject to the limitations of the Section entitled "Members' Easements of Enjoyment, grant easements where necessary for utilities, sewer facilities and other purposes over any of the Common Area and any Association Property to serve the Property.

(p) This section has been struck and is not applicable.

Section 9.02. General Limitations on Powers. In addition to the limitations enumerated in the Articles and Bylaws or elsewhere provided for in this Declaration, and without limiting the generality of such limitations, the Association acting through the Board shall be prohibited from taking any of the following actions except with the vote or written assent of a majority of the voting power of the Association residing in Members other than the Declarant:

(a) Enter into a contract with a third person under which the third person will furnish goods or services for any of the Common Area, any Association Property or the Association for a term longer than one year with the following exceptions:

(i) This section has been struck and is not applicable. -

(ii) This section has been struck and is not applicable.

(iii) Prepaid casualty and/or liability insurance policies of not to exceed three years' duration provided that the policy permits short rate cancellation by the insured.

(iv) Lease agreements for laundry room fixtures and equipment of not to exceed five years' duration provided that the lessor under the agreement is not an entity in which the Declarant has a direct or indirect ownership interest of ten percent or more.

(v) Agreements for marine satellite television, telephone, Internet and other communication services and equipment not to exceed five years' duration provided that the supplier is not an entity in which the Declarant has a direct or indirect ownership interest of ten percent or more.

(vi) This section has been struck and is not applicable.

(b) Incur aggregate expenditures for capital improvements to Common Area or any Association Property in any fiscal year in excess of five percent of the budgeted Common Expenses for that fiscal year.

(c) Sell during any fiscal year any property of the Association having an aggregate fair market value greater than five percent of the budgeted Common Expenses for that fiscal year.

(d) Pay compensation to directors or officers of the Association for services performed in the conduct of the Association's business; provided, however, that the Board may cause a director or officer to be reimbursed for expenses incurred in carrying on the business of the Association.

(e) Fill a vacancy on the Board created by the removal of a Board member.

Section 9.03. Management and Certain Declarant Contracts. In addition to the limitations of Section 9.02, any agreement for professional management of the Property or any other contract providing for the services of the Declarant, shall have a term of not more than one year with successive one year renewal periods upon agreement of the parties and shall be terminable (a) for cause on thirty days notice by the Association and (b) without cause and without payment of a termination fee on sixty days written notice by either party.

Section 9.04. Association Rules. The Association shall have the power, as provided in its Bylaws, to adopt, amend and repeal Association Rules. The Association Rules shall govern such matters in furtherance of the purposes of the Association as the Board shall deem appropriate, including without limitation, the use and enjoyment of the Common Area and any Association Property; provided, however, that the Association Rules may not discriminate among Members and shall not be inconsistent with this Declaration, the Articles or Bylaws. A copy of the Association Rules, as they may from time to time be adopted, amended or repealed, shall be mailed or otherwise delivered to each Owner and a copy shall be posted in a conspicuous place within any of the Common Area. Upon such mailing or delivery, the Association Rules shall have the same force and effect as if they were part of this Declaration. In the event of any conflict between the Association Rules and any provision of this Declaration, the Articles or Bylaws, the Association Rules shall be deemed to be superseded by such other provisions to the extent of any such inconsistency.

Section 9.05. Enforcement of Bonded Obligations. This section has been struck and is not applicable.

Section 9.06. Commencement of Maintenance Obligations. Upon the conveyance of record of any Association Property or any Maintenance Area to the Association in accordance with the provisions of this Declaration, and upon the conveyance of the first Unit within each Project, the Association shall be deemed to have accepted such Association Property and Maintenance Area and the Common Area within such Project, respectively, and the Association's duties with respect to such property and areas (including without limitation, the maintenance and management of such property and areas) as set forth in this Declaration shall automatically commence upon each such respective conveyance of record; provided, however, in the event that Declarant's subcontractors are contractually obligated to maintain such Common Area or any Association Property or Maintenance Area after such conveyance, any such maintenance shall not be assumed by the Association until the termination of such contractual obligation. Notwithstanding anything to the contrary in this Section 9.06, the Association shall have no responsibility for the maintenance of the Association Property in the Initial Property as set forth in this Declaration so long as such maintenance is being performed by Declarant pursuant to the terms of this Declaration. Declarant shall maintain the Association Property in the Initial Property as set forth in this Declaration until the last to occur of (a) August 1, 1991, or (b) the date on which Declarant records with the Adventurer Cruise Ship Acquisition Corporation a written instrument declaring the termination of its maintenance obligation. If any excess of Assessments collected over actual Common Expenses incurred by the Association is caused by reason of maintenance pursuant to this Section or otherwise, such excess shall be placed in reserve to offset the future expenses of the Association in any manner designated by the Board.

Section 9.07. Transfer of Unit. The Association shall not impose or collect any Assessment, penalty or fee in connection with a transfer of title to or any other interest in a Unit except the Association's actual costs to change its records.

ARTICLE X

Additional Obligations

Section 10.01. Repair and Maintenance by Owners. Subject to the provisions of this Declaration, including without limitation, the Article entitled "Architectural Control", each Owner shall maintain, repair, replace and restore in a clean, sanitary, neat, safe, orderly and attractive condition:

(a) His Unit Appurtenances, including, without limitation, the glass doors, if any, and windows (including window screens and cleaning the interior and exterior of the windows) of his Unit;

(b) The plumbing, electrical, air conditioning (if any), utilities and heating systems servicing his Unit and located within or underneath the perimeter of the exterior bearing walls of his Unit or within or under the floors or ceilings of the Unit, and all appliances and equipment located in the Unit;

(c) All portions of his Unit, including without limitation, the interior walls, ceilings, floors and doors;

(d) This section has been struck and is not applicable.

(e) This section has been struck and is not applicable.

(f) This section has been struck and is not applicable.

(g) His telephone, Internet; satellite television, and other communication wiring.

Section 10.02. This section has been struck and is not applicable.

Section 10.03. Right of Association to Repair and Maintain. In the event an Owner fails to perform any of the duties imposed upon him by this Article, the Association or its delegates shall have the right, subject to the provisions of St. Vincent & The Grenadines Civil Code Section 1364, if applicable, to perform such duties (including without limitation, the right to enter, at reasonable times, any portion of such Owner's Unit and Exclusive Use Common Area to perform such duties). Such Owner shall reimburse the Association for the costs incurred by the Association in performing such duties within thirty days after the Association has furnished a statement for such costs.