APPENDIX C – PERFORMANCE DEPOSIT

APPENDIX C – PERFORMANCE DEPOSIT FOR BUILDER RULES AND REGULATIONS

“____________________ (“Owner”) does hereby deposit, in compliance with the Builder Rules and Regulations adopted by the Design Review Board (DRB) and the Board of Directors of Wohali, with the Declarant/Wohali Agent the sum of $15,000.00 (fifteen thousand dollars) (hereinafter referred to as the “Deposit”) and agrees to the following terms and conditions:

1. The Deposit shall be held as security against any and all damage caused by the acts and/or omissions of Owner and/or Owner’s Agent and/or their respective employees, agents or subcontractors in connection with the construction of improvements on the Owner’s Lot.

2. Upon the occurrence of any damage, the Declarant (if prior to the Transition Date) or the Wohali Home Owners Association (HOA) (if after the Transition Date) from time to time, and without prejudice to any other remedy, may use the Deposit to, among other things, (a) repair and/or rectify the damage or (b) enforce the Guidelines, the Declaration/ CC&Rs and any other rule or regulation thus violated and cure any defect or problem caused by said non-compliance. It is expressly understood that the use of any or all of the Deposit shall not be considered a measure of the damage nor release the Owner from paying additional amounts if the total damage exceeds $15,000.00.

3. Following the Declarant/HOA’s use of all or any portion of the Deposit, the Owner shall immediately pay to the Declarant/HOA an amount sufficient to replenish the Deposit to the sum initially deposited. Failure to replenish the Performance Deposit within seven (7) days following the Declarant/HOA’s delivery of written demand shall be deemed a material breach of the Guidelines and the Declaration/CC&Rs and shall entitle the Declarant/HOA to (i) deny Owner and/or Owner’s Agent access to the community (including any of Owner and/or Owner’s Agent suppliers, subcontractors, employees and material men) and (ii) lien the Lot in an amount equal to the Performance Deposit deficiency.

4. Concurrent with the delivery of the Performance Deposit, the Owner shall execute and deliver to the DRB a Notice of Voluntary Lien in the form attached hereto.

5. Neither the Declarant, the DRB, the Board, the HOA nor any member thereof shall be liable to the Owner or any other person for any loss, damage or injury arising out of the payment or non-payment of the Deposit funds unless such loss, damage or injury is due to willful misconduct or bad faith of the DRB, the Board, the HOA or the respective members thereof, as the case may be.

6. Upon completion of the construction of Owner’s Lot as per the approved plans and specifications, delivery of the Certification to the BRB, and a final inspection by the DRB satisfactorily indicating that no damage as set forth in item 1 remains un-remedied and that all construction has been completed pursuant to the approved plans and specifications, including landscaping plans, the Deposit or any balance thereof shall be returned to the Owner.

7. The Certification shall be delivered to the address so designated by the DRB, which body shall have thirty (30) days from the receipt thereof to confirm the Owners compliance with all applicable requests of the DRB and then deduct the Street Impact Fee from the Performance Deposit and return the remaining funds. The Street Impact Fee for Building in Wohali is: i. 0-3000 total square feet - $4,000 ii. 3,001-6,000 total square feet -$8,000 iii. 6,001- 9,000 total square feet-$10,000 iv. Greater than 9,001 total square feet-$12,000

In the event that the DRB refuses to return all or a portion of the

Performance Deposit due to the owner’s non-compliance which will be detailed in writing to the owner, the owner shall have the opportunity to resubmit a supplemental Certification upon remedying the issues/problems identified in the DRB’s notice of non-compliance.

8. No interest shall be payable on the Deposit.

9. By signature below, the Declarant/Wohali Agent (circle one) acknowledges receipt of $15,000.00 (fifteen thousand dollars) in the form

of______________________________________________ Executed on this day of , 20 .

OWNER:

Lot Address:

DECLARANT/WOHALI AGENT (circle one)

By:

When recorded, return to: