DECLARATION OF

COVENANTS, CONDITIONS AND RESTRICTIONS

AND OF CERTAIN RIGHTS AND EASEMENTS

(MARLBORO RIDGE EQUESTRIAN FACILITY)


TABLE OF CONTENTS (cont.)

ARTICLE 1 DEFINITIONS 2

1.1. “Board” and “Board of Directors” 2

1.2. “Bound Parties” 2

1.3. “Builder” 2

1.4. “Building” 2

1.5. “Claim” 2

1.6. “Claimant” 2

1.7. “Commencement Date” 2

1.8. “Conceptual Site Plan” 3

1.9. “County” 3

1.10. “Declarant Control Period” 3

1.11. “Design Guidelines” 3

1.12. “Development Plan” 3

1.13. “Equestrian Facility” 3

1.14. “Equestrian Facility Operator” 3

1.15. “Equestrian Facility Owner” 3

1.16. “Equestrian Improvements” 3

1.17. “Equestrian Property” 4

1.18. “Equestrian Trails” 4

1.19. “Land Records” 4

1.20. “Living Unit” 4

1.21. “Member” 4

1.22. “Minimum Reserve Account Balance” 4

1.23. “Operating Agreement” 4

1.24. “Planning Board” 4

1.25. “Project” 4

1.26. “Property” 4

1.27. “Reserve Account” 4

1.28. “Reserve Fund Contribution” 4

1.29. “Reserve Study” 4

1.30. “Residential Association” 4

1.31. “Residential Declaration” 4

1.32. “Respondent” 5

1.33. “Roads” 5

1.34. “Routine Maintenance” 5

1.35. “Routine Maintenance Notice” 5

1.36. “Rules” 5

1.37. “Utilities” 5

ARTICLE 2 EQUESTRIAN FACILITY OPERATION AND MAINTENANCE 5

2.1. Maintenance 5

2.2. Minimum Maintenance Requirements; Routine Maintenance. 6

2.3. Reserve Account. 7

2.4. Equestrian Facility Operator 9

2.5. Insurance 9

2.6. Rules 10

ARTICLE 3 ARCHITECTURAL REVIEW 10

3.1. Architectural Review During the Declarant Control Period 10

3.2. Architectural Review After the Declarant Control Period. 11

ARTICLE 4 USE RESTRICTIONS 11

4.1. Use of Equestrian Property 11

4.2. Permitted Use 12

4.3. Rezoning 12

4.4. Notice of Equestrian Operations 12

ARTICLE 5 EQUESTRIAN PROPERTY EASEMENTS 12

5.1. Equestrian Property Access 12

5.2. Drainage 13

5.3. Equestrian Trails. 13

ARTICLE 6 DEVELOPMENT EASEMENTS 14

6.1. Utilities; Construction and Development 14

6.2. Specific Easements 15

6.3. Successors and Assigns 15

6.4. Exercise of Easements 16

ARTICLE 7 DISPUTE RESOLUTION 16

7.1. Agreement to Encourage Resolution of Disputes Without Litigation. 16

7.2. Dispute Resolution Procedures. 17

ARTICLE 8 GENERAL PROVISIONS 19

8.1. Default; Enforceability 19

8.2. Indemnification. 19

8.3. Cooperation. 20

8.4. Estoppel 20

8.5. Term 21

8.6. Amendment 21

8.7. Delay in Performance - Force Majeure 21

8.8. Notice 21

8.9. Successors of Declarant 22

8.10. Waiver 22

8.11. Further Assurances 22

8.12. Severability 22

8.13. Run With The Land 22

8.14. Captions and Gender 23

8.15. Counterparts 23

8.16. Merger 23

8.17. Perpetuities 23

8.18. Enforcement and Recordation 23

8.19. Residential Association Rights 23

Exhibits

“A” Residential Property

“B” Equestrian Facility

iii


DECLARATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS
AND OF CERTAIN RIGHTS AND EASEMENTS
(MARLBORO RIDGE EQUESTRIAN FACILITY)

THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND OF CERTAIN RIGHTS AND EASEMENTS (“Declaration”) is made as of this _____ day of __________, 200___, by and between XXX LIMITED PARTNERSHIP, a Maryland limited partnership (hereinafter referred to as the “Declarant”), and MARLBORO RIDGE COMMUNITY ASSOCIATION, INC., a Maryland nonstock corporation (hereinafter referred to as the “Residential Association”).

R E C I T A L S:

A. The Declarant is the developer of certain real property located in the Mellwood (15th) Election District of Prince George’s County, Maryland, consisting of approximately 588.63 acres of land intended to be developed as a residential community consisting of approximately 1058 single-family detached and attached dwelling units and an equestrian complex (the “Project”).

B. The residential component of the Project, as described more fully on Exhibit “A” attached hereto and incorporated herein by reference (the “Residential Property”), has been or will be subjected to the lien, operation and effect of that certain Declaration of Covenants, Conditions and Restrictions for Marlboro Ridge Community Association, Inc. recorded contemporaneously herewith among the Land Records (the “Residential Declaration”).

C. The Marlboro Ridge Community Association, Inc. (the “Residential Association”) has been, or will be, established by the Declarant to operate and maintain the Residential Property in accordance with the Residential Declaration.

D. The equestrian complex, as described more fully on Exhibit “B” attached hereto and incorporated herein by reference (the “Equestrian Facility”), is anticipated to include a multi-stalled barn, indoor and outdoor riding rings, pastures and an equestrian trails system.

E. The Project is the subject of Conceptual Site Plan No. CSP-03005 (the “Conceptual Site Plan”), as approved by the Prince George’s County Planning Board (“Planning Board”) of the Maryland-National Capital Park and Planning Commission (“Commission”).

F. The Project is currently located in the R-R Zone of Prince George’s County, and is subject to the Recreational Community Development provisions of Section 27-444 of the Prince George’s County Code, as amended (“Code”). Section 27-444 provides, in pertinent part, that covenants which insure the perpetual maintenance of the recreational facility be filed in the Land Records of Prince George’s County, Maryland (“Land Records”), and that the covenants are to apply as long as the land remains classified in the same zone it was in when developed.

G. The Declarant hereby intends to establish and to impose certain covenants, conditions, restrictions, rights and easements with respect to the Equestrian Facility and the Residential Section for purposes of complying with Section 27-444 of the Code, and for purposes of ensuring the orderly, proper and attractive improvement, development, operation and use of the Project, as provided herein, all of which shall touch, concern and run with the land, and which shall be binding upon and inure to the benefit of the Declarant, the “Equestrian Facility Owner” (as defined below), the Residential Association and its “Members” (as defined below).

NOW, THEREFORE, in consideration of the foregoing Recitals, each of which are hereby incorporated in and made a substantive part of this Declaration, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned hereby declare that the “Property” (as defined below) shall be held, conveyed, hypothecated, encumbered, sold, leased, rented, occupied and used subject to the covenants, conditions, restrictions, easements, benefits, uses, privileges, duties and obligations hereinafter set forth, all of which shall run with the land and be binding on all parties having any right, title or interest in all or any portion of the Property, and their respective heirs, personal representatives, successors, transferees and assigns, and which shall inure to the benefit of the undersigned, and their respective heirs, personal representatives, successors, transferees and assigns:

ARTICLE 1DEFINITIONS

1.1. “Board” and “Board of Directors”

shall mean and refer to the Board of Directors of the Residential Association.

1.2. “Bound Parties”

shall have the meaning ascribed in Article 7 hereof.

1.3. “Builder”

shall mean and refer to any person or entity that acquires one or more subdivided lots or parcels of land within the Residential Property from the Declarant, or its successors, transferees and assigns, for the purpose of constructing residential Living Units on such lots or parcels for sale or lease to others.

1.4. “Building”

shall mean and refer to any structure permanently affixed to the real estate comprising the Equestrian Property or any portion thereof designed or built for the enclosure, shelter, protection or occupancy of persons, horses, chattels or other property of any kind or nature.

1.5. “Claim”

shall have the meaning ascribed in Article 7 hereof.

1.6. “Claimant”

shall have the meaning ascribed in Article 7 hereof.

1.7. “Commencement Date”

shall mean and refer to the first day of the first calendar month following the first to occur of (i) the completion of the Equestrian Facilities and all Buildings and Equestrian Improvements to be constructed within the Equestrian Property in accordance with the Development Plan, and the full release and discharge of the Declarant and its affiliates from any and all bonds and other performance guarantees of any kind whatsoever regarding the installation and construction of the Equestrian Facilities and such Buildings and Equestrian Improvements, (ii) the date of receipt by the Residential Association of written notice from the Declarant that the “Reserve Fund Contribution” (as defined below) is to begin, or (iii) the date that is five (5) years after recordation of this Declaration among the Land Records.

1.8. “Conceptual Site Plan”

shall have the meaning ascribed in the Recitals above.

1.9. “County”

shall mean and refer to Prince George’s County, Maryland, and its applicable agencies and authorities.

1.10. “Declarant Control Period”

shall mean and refer to the period of time beginning with date of recordation of this Declaration among the Land Records and ending on the earlier of (i) twenty (20) years after the date of recordation of this Declaration, or (ii) recordation by the Declarant of a written instrument among the Land Records expressing the Declarant’s express intention to terminate the Declarant Control Period. Notwithstanding the foregoing, the Declarant may, in its sole discretion at any time and from time to time, expressly and in writing, terminate all or any portion of the rights and/or obligations of the Declarant under this Declaration that would otherwise be in effect during the Declarant Control Period.

1.11. “Design Guidelines”

shall have the meaning ascribed in Section 3.2 hereof.

1.12. “Development Plan”

shall mean and refer collectively to the Conceptual Site Plan and all project plans, preliminary plans, site plans, subdivision plats and/or other regulatory plans, as amended, for the Project as may have been or shall be reviewed and approved by the Planning Board, including all amendments, modifications, extensions and supplements thereof as may be made from time to time.

1.13. “Equestrian Facility”

shall have the meaning ascribed in the Recitals above.

1.14. “Equestrian Facility Operator”

shall have the meaning ascribed in Section 2.4 hereof.

1.15. “Equestrian Facility Owner”

shall mean and refer to any natural person, group of persons, corporation, partnership, limited liability company, association, trust, or other legal entity, or any combination of such entities, legally capable of holding title to real property, that owns fee simple title to the Equestrian Facility; provided, however that any person, group of persons, corporation, partnership, limited liability company, association, trust, or other legal entity, or any combination of such entities, that holds such an interest solely as security for the performance of an obligation shall not be an Equestrian Facility Owner solely by reason of that interest.

1.16. “Equestrian Improvements”

shall mean and refer to all structures and other improvements built or made on or to the Equestrian Property, or any portions thereof, of any kind whatsoever, whether above or below grade, including, without limitation, Buildings, utility installations, storage, loading and parking facilities, roadways, trails, walkways, driveways, landscaping, signs, site lighting, site grading, cleaning and earth movement, and any exterior additions, changes or alterations thereto.

1.17. “Equestrian Property”

shall mean and refer collectively to the Equestrian Facility and the Equestrian Trails.

1.18. “Equestrian Trails”

shall mean and refer to the trails now or hereafter located within the Equestrian Property and/or the Residential Property designed and intended for the riding and exercising of horses in accordance with the Development Plan.

1.19. “Land Records”

shall mean and refer to the Land Records of Prince George’s County, Maryland.

1.20. “Living Unit”

shall mean and refer to any portion of the Residential Property which contains a residential dwelling unit designed for use and occupancy by a single household; provided however, that an accessory structure within a single subdivided lot containing living quarters in addition to the primary dwelling, the ownership of which is held by the same person, shall not be deemed to be a separate Living Unit. Each residential dwelling unit within a condominium regime or multi-family structure shall be deemed to be a separate Living Unit. The term Living Units include, without limitation, single-family detached dwelling units, single-family attached and semi-attached dwelling units, condominium units, and rental apartment units.

1.21. “Member”

shall mean and refer to any member of the Residential Association, as determined in accordance with the Residential Declaration.

1.22. “Minimum Reserve Account Balance”

shall have the meaning ascribed in Section 2.3 hereof.

1.23. “Operating Agreement”

shall have the meaning ascribed in Section 2.4 hereof.

1.24. “Planning Board”

shall have the meaning ascribed in the Recitals above.

1.25. “Project”

shall have the meaning ascribed in the Recitals above.

1.26. “Property”

shall mean and refer collectively to the Equestrian Property and the Residential Property.

1.27. “Reserve Account”

shall mean and refer to the reserve account established and maintained by the Equestrian Facility Owner in accordance with Section 2.3 hereof.

1.28. “Reserve Fund Contribution”

shall have the meaning ascribed in Section 2.3 hereof.

1.29. “Reserve Study”

shall have the meaning ascribed in Section 2.3 hereof.

1.30. “Residential Association”

shall have the meaning ascribed in the Recitals above.

1.31. “Residential Declaration”

shall mean and refer to that certain Declaration of Covenants, Conditions and Restrictions for Marlboro Ridge Community Association, Inc., as recorded contemporaneously herewith among the Land Records (which term shall include any and all subsequent corrections, modifications and supplements thereof as may be recorded among the Land Records).

1.32. “Respondent”

shall have the meaning ascribed in Article 7 hereof.

1.33. “Roads”

shall have the meaning ascribed in Section 6.1 hereof.

1.34. “Routine Maintenance”

shall have the meaning ascribed in Section 2.2 hereof.

1.35. “Routine Maintenance Notice”

shall have the meaning ascribed in Section 2.2 hereof.

1.36. “Rules”

shall have the meaning ascribed in Section 2.6 hereof.

1.37. “Utilities”

shall have the meaning ascribed in Section 6.1 hereof.

ARTICLE 2EQUESTRIAN FACILITY OPERATION AND MAINTENANCE

2.1. Maintenance. The Equestrian Facility Owner shall operate, maintain, repair, replace and keep the Equestrian Facility and all components thereof, including, without limitation, the Equestrian Trails, in good order. The Equestrian Facility Owner shall keep the Equestrian Facility in a good and safe working condition, and shall otherwise materially comply with all applicable governmental guidelines and requirements relating to the operation, maintenance, repair and replacement of the Equestrian Facility. The Equestrian Facility Owner’s obligations regarding the Equestrian Facility shall also include, without limitation, the following:

(a) Entering into a cooperator’s agreement with the Soil Conservation Service and using their guidance to ensure that best management practices are being followed within the Equestrian Facility.

(b) Creating a nutrient management plan for the Equestrian Facility that sets guidelines for the use of fertilizer for the pastures and the treatment of manure, and filing the plan with the Department of Agriculture.

(c) Regular inspections and repairs to all fencing enclosing and within the Equestrian Facility, mowing of pastures for weed control, seasonal fertilization and PH adjustment of pasture soils, policing of Equestrian Trail road crossings for manure removal, clearing field trails, and checking and clearing downed trees and limbs on wooded trails.

(d) Implementation of a pasture management program for maintaining optimum forage for the horses that will include a rest and rotation schedule.

(e) Maintenance, repair and replacement of all landscaped areas within the Equestrian Facility, including, without limitation, the replacement of dead shrubs and other landscaping as necessary, and the regular periodic mowing, weeding, pruning and fertilizing of all such landscaped areas.

(f) Maintenance, repair and replacement of all storm water management facilities within the Equestrian Property that serve or benefit the Equestrian Facility and the Residential Property, including, without limitation, all storm drains, inlets, pipes, filters, out-flow control devices, oil/grit separators, trenches, swales, basins, ponds, dams, berms, drainage areas, rip-rap, and underground facilities, if any.

(g) Regular periodic removal of all trash, papers, debris, and other refuse from the Equestrian Facility.

(h) Payment of all service contract fees and utility charges relating to the Equestrian Facility.

(i) Payment of all wages, workers’ compensation insurance, unemployment taxes, and other costs and expenses of employees necessary to maintain the Equestrian Facility.

(j) Maintenance of reasonable and adequate public liability, casualty and property insurance regarding the Equestrian Facility.

(k) Establishment and funding of commercially adequate reserves for repairs and other expenses of a non-recurring nature regarding the Equestrian Facility, including, without limitation, the Reserve Account pursuant to Section 2.3 hereof.

2.2. Minimum Maintenance Requirements; Routine Maintenance.