7. Non-Regime Sub-Condominiums

7.1. Establishment of Sub-Condominiums. Owners may establish a Sub-Condominium over a Private Unit upon fulfillment of the following:

(a) Each Private Unit must have at least 75% of its infrastructure installed.

(b) The Sub-Condominium plans, designs, and relevant drawings must be approved in writing by the Design Review Committee. All construction in a Sub-Condominium must comply with the Design Guidelines and any and all other requirements of the Design Review Committee.

(c) The Land Use Classifications corresponding to the Sub-Condominium under the Sub- Condominium Declaration, the Master Condominium Rules and Regulations, and the restrictions to modification of the Land Use Classifications must be complied with.

(d) The Sub-Condominium Declarations and Sub-Condominium Rules must be approved in writing by the Administrators, subject to the approval of the Master Condominium Assembly. No Sub-Condominium Declaration or Sub-Condominium Rules may be approved unless they comply with the Master Condominium Rules and Regulations.

(e) The Sub-Condominium Declaration and Sub-Condominium rules must be approved by the competent authorities; relevant licenses, permits and authorizations must be obtained; the Sub-Condominium Declaration and Sub-Condominium Rules must be recorded in the Public Registry of Property; and all other provisions, terms, and conditions of the Law must be complied with.

7.2. Subordination to the Master Condominium. The Sub-Condominium Owners, Sub- Condominium Administrators, the Sub-Condominium Surveillance Committees, and any committee or entity created by the Sub-Condominium Assembly must at all times be subject to and comply with the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly with respect to those issues affecting the Sub-Condominium as a Private Unit of the Master Condominium, including but not limited to matters of common interest within the Master Condominium, common areas, Assessments, and voting rights. Under no circumstance may the Sub-Condominium documents, including the Sub- Condominium Declaration, Sub-Condominium Rules, Sub-Condominium Administrators Rules, if any, or any other rules, regulations, standards, resolutions, or guidelines issued by the Sub- Condominium Assembly, as amended from time to time, contain provisions violating or contradicting provisions of Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, or any other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly. The

obligations, restrictions, and limitations regarding the use, enjoyment, maintenance, operation, and management of Master Common Areas and assumed common areas and the provision of and payment for Master Common Services are regulated by the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly. The Sub-Condominium, however, may impose obligations, restrictions and limitations with respect to the Sub-Condominium that are stricter than those included in the rules and regulations of the Master Condominium.

7.3. Sub-Condominium Master Representatives.

(a) Election; Appointment. The Sub-Condominium Owners of each Sub-Condominium and the Owners of any Private Unit not subject to a Sub-Condominium regime must elect or appoint a Master Representative from among their Owners for all purposes relating to the Master Condominium. An Owner may not be elected and is not qualified to serve, vote, or be counted for quorum purposes as a Master Representatives unless they are current in the payment of all Assessments for their Sub-Condominium Unit, including Base Assessments, Benefited Assessments, Extraordinary Assessments, and any other monetary charge or obligation, including Penalty Assessment, fines or other penalty charges, interest, attorneys’ fees, and costs of collection. Master Representatives are elected to serve a term of one year; however, Master Representatives may be elected to serve consecutive terms. In the case of a Sub-Condominium, if no election occurs and no appointment is made or if notice of the name of the Master Representative is not given to the Administrators within 5 (five) days following execution of the Sub-Condominium Declaration before a notary public or the conclusion of a Sub- Condominium’s annual assembly, or if the Master Representative is unqualified, unable, or unwilling to act as Master Representative for the entire one year term, the chair of the Sub- Condominium Surveillance Committee must be the Master Representative for the relevant period.

(b) Voting; Proxies; Conflict of Interest. A Master Representative may not vote on behalf of the Sub-Condominium if the Sub-Condominium owes two or more monthly Assessments to the Master Condominium and must not be taken into account for quorum and voting requirement purposes. Master Representatives may delegate their appointment to different individuals by means of a proxy letter duly signed before two witnesses. Master Representatives must recuse themselves in the event of a conflict of interest. The recused Master Representative may execute a limited proxy, enabling another person to act in the matter, so long as such person does not share the conflict of interest and is able to act independently on behalf of the Sub-Condominium or Private Unit represented.

7.4. Payment of Assessments.

(a) Obligation to Pay. All Sub-Condominium Unit Owners are jointly liable for Assessments and other charges levied against their Sub-Condominium Unit and all Owners in the Sub- Condominium and the Owners of any Private Unit not subject to a Sub-Condominium regime are jointly liable for Assessments and other charges levied against the Sub-Condominium or Private Unit not subject to a Sub-Condominium regime as a Private Unit of the Master Condominium. In the case of Sub-Condominiums, Sub-Condominium Owners are liable for the payment thereof

according to the terms and conditions set forth in the relevant Sub-Condominium Rules, Sub- Condominium Declarations, Sub-Condominium Administrators Rules, if any, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Sub- Condominium Assembly. All such Assessments and charges must be paid to the Administrators as provided in Master Rules, the Administrators Rules, the Sub-Condominium Rules, any Sub- Condominium Administrators Rules, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly or Sub-Condominium Assembly, and the Law.

(b) Delinquency; Fines and Penalties. Failure by one or more Sub-Condominium Owners to pay the Assessments levied against their particular Sub-Condominium Unit or failure by one or more Owners of a Private Unit not subject to a Sub-Condominium regime to pay a portion of the Assessments levied against their particular Private Unit does not release the Sub-Condominium or Private Unit not subject to a Sub-Condominium regime from the obligation to timely pay to the Administrators the Assessments levied against the relevant Sub-Condominium or Private Unit not subject to a Sub-Condominium regime. When any Sub-Condominium Owner or Owner of a Private Unit not subject to a Sub-Condominium Regime is in default on any portion of any Assessment, Administrators may distribute the resulting debt to the remaining Owners, in accordance with their Undivided Interest Percentage. When any portion of such debt is recovered, Administrators will reimburse those affected by giving appropriate credit against the payment of future Assessments. Administrators may also impose penalties and fines in accordance with the rules and regulations of the Master Condominium and the Law. Administrators may impose fines and penalties on a particular Sub-Condominium or Private Unit not subject to a Sub- Condominium regime upon failure of the Sub-Condominium or Private Unit not subject to a Sub- Condominium regime to pay the Assessments levied against it. If a Sub-Condominium has a high level of delinquencies on particular Sub-Condominium Units as determined by Administrators of the Master Condominium, or at the request of the Sub-Condominium Surveillance Committee, Administrators may assume authority for the collection of delinquent assessments on behalf of the Sub-Condominium to assure consistent enforcement of Assessment collection throughout the Master Condominium.

(c) Suspension of Common Services. Administrators may also suspend the provision of common services, including but not limited to access to common areas, private security, sewage services, and other related services. If the infrastructure for delivery of drinking water is not under the control of the municipality, the Administrator may also limit drinking water to any defaulting Sub-Condominium, Private Unit not subject to a Sub-Condominium regime, or Sub- Condominium Unit until the default has been rectified as follows: (i) in the case of domestic use the provision of drinking water may be limited to a minimum; and (ii) in the case of non- domestic use the provision of drinking water may be completely suspended. If common services may not be suspended exclusively to the defaulting Owner, then Administrators may suspend them to the entire Sub-Condominium or Private Unit not subject to a Sub-Condominium regime until the default is cured. No prior approval by the Assembly is required for the suspension of services pursuant to this paragraph.

7.5. Utility Easements. Sub-Condominium Declarations or other public instruments executed by Administrators or by Sub-Condominiums Administrators must describe the Utility Easements over or affecting the Sub-Condominium. Likewise, the Sub-Condominium Rules, the Sub-

Condominium Administrators Rules, if any, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Sub-Condominium Assembly must include provisions requiring Sub-Condominium Owners to honor and fulfill each and every one of the obligations imposed on Sub-Condominium Owners and Sub-Condominium Units as subservient tenements under agreements creating the Utility Easements. In the case of Private Units not subject a Sub- Condominium regime, the recorded documents must describe all Utility Easements over or affecting the Private Unit.

7.6. Maintenance of Common Areas and Common Services. The maintenance, operation and management of all Sub-Condominium Common Areas and any areas of free access within Private Units not subject to a Sub-Condominium regime are the responsibility of the Sub- Condominium Administrators of each Sub-Condominium or the Owners of such Private Units; however, Administrators have the right but not the obligation to assume the maintenance, operation and management of any Sub-Condominium Common Areas or any areas of free access within any Private Unit not subject to a Sub-Condominium regime, whether on a temporary or on a permanent basis. Upon receipt by Sub-Condominium Administrators or the Owners of any Private Unit not subject to a Sub-Condominium regime of notice from Administrators regarding the assumption of any Sub-Condominium Common Areas or common areas within a Private Unit not subject to a Sub-Condominium regime, such Sub-Condominium Administrators or Owners must immediately transfer to such Administrators any funds and reserves under their control. Such an assumption by Administrators, however, does not affect the title to any property, and such common areas will continue to be held pursuant to their Undivided Interest Percentage as set forth the in corresponding Sub-Condominium Declaration or documents pertaining to the affected Private Unit not subject to a Sub-Condominium regime.