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202002679 3.11 Improvements to Area of Association Responsibility. If plans and specifications submitted to the DRC pertain to an Improvement that is within an Area of Association Responsibility so that the Association would be responsible for the maintenance, repair, or replacement of such Improvement, the DRC may condition its approval of the plans and specifications for the proposed Construction or Modification with respect to the Improvement on the execution by the Owner of an agreement, in form and substance acceptable to the DRC and the Board, that obligates the Owner to reimburse the Association for the future cost of the repair, maintenance, or replacement of such Improvement. Any such agreement shall be Recorded. 3.12 DesiEn Review Committee. So long as the Declarant or any Designated Builder owns one or more Lots, the Declarant and Designated Builders shall have the right to determine the number of members on the DRC and to appoint and remove the members of the DRC. At such time as neither the Declarant nor Designated Builders own any Lot, the Board shall determine the number of members on the DRC, and the members of the DRC shall be appointed and may be removed by the Board. The Declarant or any Designated Builder may at any time voluntarily surrender its right to appoint and remove the members of the DRC and, in that event, may require, for so long as the Declarant or Designated Builder own any Lot, that specified actions of the DRC, as described in a Recorded instrument executed by the Declarant or Designated Builder, be approved by the Declarant or Designated Builder before they become effective. The DRC may adopt, amend, and repeal architectural guidelines, standards, and procedures to be used in rendering its decisions ("Design Guidelines"). The Design Guidelines may include without limitation provisions regarding (a) the size and height of Residences; (b) architectural design, with particular regard to the harmony of the design with the surrounding structures and topography; (c) placement of Residences and other buildings; (d) landscaping design, content, and conformance with the character of the Property and permitted and prohibited plants; (e) exterior color schemes, finishes, and materials; (f) signage; (g) perimeter and screen wall design and appearance; (h) time periods for commencement and completion of any approved Construction or Modification; and (i) rules and regulations governing Construction activities. Any adoption, amendment, or repeal of the Design Guidelines after neither the Declarant nor the Designated Builder has the right to appoint the DRC must be approved by the Board. The DRC may establish one or more subcommittees consisting of one or more members of the DRC and may delegate to any such subcommittee the authority and power of the DRC to approve or disapprove any Construction or Modification within a specified portion of the Project. 3.13 Compliance Deposit. The DRC shall have the right, on a case-by-case basis and in its sole discretion, to condition its approval of plans and specifications upon the receipt by the DRC of a deposit (the "Compliance Deposit") to secure the performance of the Owner's obligations under this Section to (a) clean up and/or remove equipment, building materials, dirt, debris, and similar materials, (b) protect Improvements from damage and repair any damage sustained in connection with Construction activities by or for the benefit of Owner, and (c) ensure that the Construction or Modification will be made in accordance with the plans and specifications approved by the DRC. The Compliance Deposit shall be in such amount as may reasonably be determined by the DRC. The DRC may apply the Compliance Deposit toward payment of (a) any costs incurred by the DRC or the Association with respect to any construction cleanup or removal required and/or the repair or replacement of any damaged or destroyed Improvements, the cost for which the Owner is responsible, (b) any costs incurred by the DRC or the Association in connection with the inspection of the Construction or Modification to ascertain whether the Construction or Modification is being made in accordance with the approved plans, and (c) any attorneys' fees, court costs, and other costs (including but not limited to costs incurred to correct the violation) incurred by the Association in connection with any violation of the Community Documents related directly or indirectly with the Construction or Modification. The DRC shall return the unapplied portion of an Owner's Compliance Deposit upon receipt by the DRC of a written request from the Owner and following confirmation by the DRC Page 16 of 52