HANDBOOK

Of The

SQUIRE

VILLAGE

COMMUNITY

ASSOCIATION

SQUIRE VILLAGE COMMUNITY ASSOCIATION

TOMS RIVER, NEW JERSEY

This booklet contains the official, Administrative Rules & Regulations and other

pertinent information governing the day-by-day operation of Squire Village. It is to be

used as a supplement to, and in conjunction with, the by-laws.

This Handbook is issued by the Board of Trustees of the Squire Village

Association to provide its members with a convenient, ready source of information

about their Village. Each homeowner will want to keep it handy, where you can refer to

it often. By following the helpful suggestions it contains, you will find you can

maintain your home more easily, adding to your comfort and reducing your living costs.

The essence of good citizenship in the Village is cooperation and voluntary compliance

with these rules and regulations which, in most instances, were formulated out of ideas

and experiences of the original builder and the residents themselves.

All members of the Board of Trustees, the officers, block captains and other

committees serve voluntarily without compensation.

Squire Village Association

Board of Trustees

1

Reprinted from original.

History

The following summary is prepared to assist homeowners in Squire Village in understanding

the origin of the "Squire Village Declaration of Covenants, Restrictions, Easements, charges and

Liens".

Homeowners who purchased homes from Lockmere Corporation were presented with this

document in the form of a booklet prior to purchase. Subsequent purchasers of homes, either from

original homeowners or from other developers, were often not provided with a copy of the

"Declaration".

In general, the purpose of imposing restrictions on land is to enhance its value. Limiting the

uses to which land may be put, establishing set-back lines and building locations, requiring houses to

be of a designated minimum or maximum size and value, and other such provisions all tend to increase

the value of the restricted property and nearby properties.

As more and more Americans move into the open country, and commerce and industry follow

hard on their heels, we become increasingly aware of the value of restrictions, in relation to both the

enjoyment and the resale of our homes. Value tends to depend upon the nature and the quality of

restrictions which are established as a matter of recorded contract. Matters of lot width, air space,

building setback lines, play areas and even neighborhood beauty today play an important part in the

eye of the purchaser. These are the basic purposes of restrictive covenants, especially as to residential

property. More and more these features guide the lending institutions in the placing of mortgage loans

on new land and even older building construction. They have learned that the security for their loans

depends, not only on the enjoyment of the owner who borrowed from them, but also upon his ability to

sell the property in a favorable market should personal conditions make it necessary.

In 1969, the late Samuel Patmas, a developer and original President of Lockmere Corporation,

sought Planning Board approval for the purpose of developing the Squire Village Residential

Community, a development in Dover Township where it was proposed to build two hundred single

family homes. In addition to the general purpose of imposing restrictions upon the developmental site,

Lockmere also had a specific purpose in mind.

At the time Planning Board approval was being sought, the Comprehensive Zoning Ordinance

of the Township of Dover, Article IX, Section 9.01, entitled "Permitted Use" controlled the use within

the R-200 zone, the zone wherein Squire Village was to be developed. Section 9.05 set forth

minimum lot width of 125 feet, minimum lot front of 100 feet and minimum depth of 150 feet.

2

Section 9.05(K) (1) (a) provided that a developer could apply for a reduction of

the lot sizes in his subdivision. Section 9.05 (K) (2) provided that a condition of

acceptance of such modified plan was that the developer dedicate for park and

recreational purposes for the benefit of the purchasers of development lots an area equal

to at least the aggregate amount by which each lot was reduced. Section 9.05 (K) (2)

(c) provided:

"the developer shall, in form of restrictions and covenants to be recorded, also

provide that title to said ara, subject to the purposes hereinbefore set forth shall be

conveyed to an association organized under the non-profit corporation statutes of

the State of New Jersey, whose members shall be lot owners and such other

persons as the majority of members shall designate from time to time by duly

adopted by-laws."

Lockmere Corporation submitted its modified subdivision plan pursuant to

this ordinance. On June 16, 1969 the Articles of Incorporation of the Squire

Village Community Association were executed. The Corporate Officers of

Lockmere were the incorporators and also constituted the first board of directors.

The Articles were filed and recorded with the Secretary of State on August 26,

1969. However, the original officers of the Squire Village Community

Association, who were also the officers of Lockmere Corporation, did nothing in

furtherance of the Association other than extracting the $25.00 yearly dues from

homeowners. No membership meetings were ever held.

By virtue of being allowed to modify and reduce lot lines, Lockmere was

able to reduce construction costs. Considerable savings resulted from the

reduced extent of utility lines, piping wiring, road construction curbing and

sidewalks. Without doubt the sale of homes in the Squire Village Residential

Community was greatly enhanced by the attraction of the wooded setting of the

Common Areas. Without a doubt, everyone who originally purchased in the

development was induced to do so in part by the Common Areas. The price the

homeowners paid for the proposed enjoyment of the Common Areas, was the

reduction of the size of their lots considerably below the minimum size set forth

in Section 9.05 of the Ordinance.

The "Declaration provides under Article II, that one year from the date of

the conveyance of the 199th dwelling house or on December 31, 1972, whichever

occurs first, the type of membership of lot owners changed. The change gave the

lot owners the voting power to elect their own board of trustees thus enabling

them to control and direct the association. On November 28, 1977, an election

was held and a nine-member board of trustees was elected from among the

homeowners.

3

Article III of the "Declaration" provides that with the conveyance of the

last lot or earlier, at the option of the developer, title to the Common Areas would

be conveyed to the Association by Special Warranty Deed, free and clear of all

encumbrances and liens, except those created by the "Declaration". However,

Samuel Patmas, the President of Lockmere Corporation, died in the mid 1970's.

The Lockmere Corporation is still an existing New Jersey Corporation but with

the death of Mr. Patmas, discontinued building homes in Squire Village. To date,

title to the Common Areas is still held by Lockmere Corporation.

The Board of Trustees elected in 1977 contacted the attorney for Lockmere

Corporation concerning its obligation to convey the Common Areas to the

Association. The attorney advised that Lockmere would convey the land to the

Association if requested. In this regard, a title search of the Common Areas was

requested to be done by Chicago Title Insurance Company. The search revealed

that Lockmere Corporation had not paid any land taxes on the Common Areas

since 1972 and that there was considerable tax arrearage. The Dover Township

Tax Collector, as a result of the tax arrearage, had issued "Certificates of Tax

Sale" on the Common Areas, consisting of approximately 38 acres. The

"Certificates" were purchased from the Tax Collector by the Township of Dover

and to date are still held by the Township. The holder of these "Certificates" has

the right to foreclose the property and sell it, or utilize it in some manner.

In addition to the aforementioned tax problem, the title search also

revealed that there were numerous money judgments and liens against Lockmere

Corporation, approximating $150,000.00. Under the law, the judgment and liens

attach to all lands held by Lockmere Corporation in the State of New Jersey.

Inasmuch as Lockmere to this day holds the title to the Squire Village Common

Areas, the judgments and liens attach to the entire Common Areas.

The offer now of Lockmere to deed the Common Areas to the Association

is a mere empty gesture as the Association would also be accepting the

tremendous financial liabilities attached to the land. The fact that Lockmere

executes a deed to the land to another, does not free the land from liabilities

against it. The liabilities would remain against the land and be transferred with it.

Since late 1978, negotiations have been underway with the Township,

seeking a method of acquiring title to the Common Areas free of the financial

encumbrances. The Township agreed to foreclose the "Certificates of Tax Sale"

by proceedings in rem pursuant to N.J.S.A. 54:5-104.29 et seq. Only a

municipality may foreclose a certificate of tax sale by proceedings in rem. The

private holder of a certificate to tax sale may not use this method.

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Land taxes are a paramount lien. Only a certificate of tax sale which

includes general land taxes can be foreclosed in rem. The "Certificates of Tax Sale"

against the Squire Village Common Areas are for general land tax. When the judgment

of foreclosure in rem is entered and final, the Township will have the absolute right to

sell the title to the Common Areas. This type of judgment extinguishes all of the

previous judgments and liens against the land. The purchaser of the land will receive a

deed with clear title from the Township. The foreclosure in rem has been instituted by

the Township in the New Jersey Superior Court and final judgment is imminent.

The Township has recognized that the residents of Squire Village have equitable

right to the common Areas, and have agreed to so condition the sales of the land as to

discourage interest in it by land speculators.

All one has to do is observe many other developments where the bulldozer has

done its work. The land is flattened and the trees are removed. Once this takes place,

there is no comparison between such a development and Squire Village, regardless of

cost of the homes. As it is now situated, with its wooded setting, the Squire Village

Residential Community is one of the finest in the State of New Jersey. To lose the right

to control the extensive wooded area, namely the Common Areas, would without doubt

reduce the attraction of this community insofar as resale value of homes is concerned,

not to mention the peace of mind from knowing it would remain in its natural state

forever.

5

SQUIRE VILLAGE

DECLARATION OF COVENANTS, RESTRICTIONS, EASEMENTS,

CHARGES AND LIENS

THIS DECLARATION, made the 16th

day of December, 1968 by LOCKMERE

CORPORATION, a New Jersey Corporation, with offices at 469 River Terrace, Toms River, Dover

Township, Ocean County, New Jersey, hereinafter referred to as "DEVELOPER"

WITNESSETH: WHEREAS, Developer is the owner of the real property described in Exhibit

"A" of this Declaration, and desires to develop theron a residential community together with common

lands and facilities for recreational purposes as shown and designated on "Revised Preliminary Plat of

Squire Village, Dover Township, Ocean County NJ dated October 18, 1968 passed by Township of

Dover Planning Board, revised preliminary sub-division approval granted November 4, 1968", a copy

of which map is attached hereto and referred to as Exhibit "B", for the benefit of such community; and

WHEREAS, Developer desires to provide for the preservation of the values and amenities in

said community and for the maintenance of said common lands and facilities; and, to this end, desires

to subject the real property described in Exhibit "A", in the manner more particularly shown and

designated in Exhibit "B", to the covenants, restrictions, easements, charges, and liens, hereinafter set

forth, each and all of which is and are for the benefit of said property and each owner thereof: and

WHEREAS, Developer has deemed it desirable, for the efficient preservation of the values and

amenities in said community to: create an agency to which will be delegated and assigned the powers

of maintaining and administering the community facilities, administering and enforcing the covenants

and restrictions and levying, collecting and disbursing the assessments and charges hereinafter created;

and

WHEREAS, Developer has incorporated under the laws of the State of New Jersey as a non-

profit corporation, the Squire Village Community Association for the purpose of exercising the

functions aforesaid.

NOW, THEREFORE, the Developer declares that the real property described in Exhibit "A"

attached hereto and forming a part hereof, and as shown on Exhibit "B" attached hereto, is and shall

be held, transferred, sold, conveyed and occupied subject to the covenants, restrictions, easements,

charges and liens (sometimes referred to as "covenants and restrictions") hereinafter set forth.

PARAPHRASE AND EXPLANATION OF THIS SECTION:

The squire village was conceived and developed as a special community dedicated to a better way of

life. The land was laid out and designed to give a feeling of openness and freedom. Certain rules and

regulations were formulated to provide for protecting the rights of all the owners.

In keeping with the demands of the State of New Jersey, a formal association was founded and incorporated according to the laws of the State.

6

ARTICLE I

DEFINITIONS

Section 1. The following words when used in this Declaration (unless the context

shall prohibit) shall have the following meanings:

(a) "Association" shall mean and refer to the Squire Village Community

Association, its successors and assigns.

(b) "The Properties" shall mean and refer to all properties, both Lots and

Common Areas, as are subject to this Declaration, and which are described in

Exhibit "A", as well as more particularly shown and designated in Exhibit

"B".

(c) "Common Areas" shall mean and refer to those areas of land shown on the

recorded subdivisions plats of the Properties and described in Exhibit "B"

attached hereto and forming a part hereof. Said areas are intended to be

devoted to the common use and enjoyment of the members of the Association

as herein defined, and are not dedicated for use by the general public.

(d) "Lot" shall mean and refer to any plot of land intended and subdivided for

residential use, shown upon one of the recorded maps of The Properties, but

shall not include Common Areas as herein defined.

(e) "Owner" shall mean and refer to the record owner, whether one or more

persons or entities, of the fee simple title to any Lot but shall not mean or refer

to any mortgagee or subsequent holder of a mortgage, unless and until such

mortgagee or holder has acquired title pursuant to foreclosure or any

proceeding in lieu of foreclosure.

(f) "Member" shall mean and refer to all those Owners who are members of the

Association as provided in Article II, Section 1, hereof.

(g) "Common Easement" shall mean such easements as are so designed on

Exhibit "B". Common easements shall inure to the benefit of all owners,

their invitees and licensees and shall also be utilized by utility companies, for

the purpose of installation maintenance and repair of all utility lines, including

but not limited to water, storm and sanitary sewers, telephone, electric and

gas, and the municipality or any subdivision or agency, thereof.

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ARTICLE II

MEMBERSHIIP AND VOTING RIGHTS IN THE ASSOCIATION

Section 1. Membership. Every person who is a record Owner (as defined in Article 1)

of any Lot which is subjected by this Declaration to assessment by the Association shall

be a member of the Association.

Section 2. Voting Rights. The Association shall have two classes of voting

membership.

Class A. Class A Members shall be all Owners excepting the Developer and excepting

any other person or entity which acquires title to all or a substantial portion of The

Properties for the purpose of developing thereon a residential community. Class A

Members shall be entitled to one vote for each Lot in which they hold the interest

required for membership by Section 1 of this Article II. When more than one person

holds such interest or interests in any Lot all such persons shall be Members, and the

vote for such Lot shall be exercised as they among themselves determine, but in no

event shall more than one vote be cast with respect to any such Lot.

Class B. The Class B Member shall be the Developer, its successors and assigns. The

Class B membership shall be entitled to five votes for each Lot which it holds the

interest required for Membership by Article IV or 410 votes, whichever is greater,

provided that upon the happening of either of the following events, whichever shall first

occur, the Class B membership shall cease and be converted to Class A membership.

(a) One year from the date of the conveyance of the 199th dwelling house constructed

upon the lands in Schedule "A" or

(b) On the 31st day of December, 1972, whichever shall first occur.

When a purchaser of an individual Lot takes title thereto from the Developer, he

becomes a Class A Member and the membership of the Developer with respect to such

Lot shall cease.

PARAPHRASE AND EXPLANATION OF THIS SECTION:

As of October 3, 1977, the owners of record in Squire Village formally took control of

the Community Association. The untimely death of the Developer delayed this

transfer of authority. As of this date, every owner is a Class "A" member. See Article

I, Sect. e & f.

9

BY-LAWS OF

THE SQUIRE VILLAGE COMMUITY ASSOCIATION

BOARD OF TRUSTEES

Duties and Functions:

Section 1. The affairs of the Association shall be governed by the Board of Trustees consisting of nine

members, none of whom need be members of the Association.

Section 2. At the first annual meeting of the members of the Association, 3 Trustees shall be elected to

serve for a term of three years, 3 shall be elected to serve for a term of two years, and 3 shall be

elected to serve for a term of one year. At the expiration of the initial term of each Trustee, his

successor shall be elected to serve for a term of three years, provided that each Trustee shall continue

to hold office until his successor is elected. Trustees shall serve without compensation.

Section 3. If the office of any Trustee shall become vacant by reason of his death, resignation, retirement,

disqualification, removal from office or otherwise, the remaining Trustees, at a special meeting duly

called for such purpose, shall choose a successor, who shall hold office until the next annual election

meeting of the members and his re-election or the election of his successor at such meeting. The

person so elected shall serve for the unexpired term in respect to which such vacancy occurred.

Section 4. Trustees may be removed with or without cause, by the affirmative vote of two-thirds of the

members at any annual or special meeting for the members duly called for such purpose.

Section 5. The first or organizational meeting of each newly elected Board of Trustees shall be held

immediately upon adjournment of the meeting of members at which they were elected and at the

same place where the meeting of members was held, provided a quorum is present. If a quorum of

the Board is not then present, such first or organizational meeting shall be held as soon thereafter as

may be practicable provided notice Is given to each Trustee as set forth in Section 6 of the by-laws or

unless waived as provided in Section 8 of these by-laws.

Section 6. Regular meetings of the Board of Trustees may be held at such time and place permitted by

law as from time to time may be determined by the Trustees, but at least four such General meetings

shall be held in each fiscal year at which time all the members of the Association may attend and be

brought up to date on the condition of the Association. Notice of all meetings of the Board shall be

given to each Trustee personally, by telephone, newsletter, or by the Board Secretary at least five

days before the date appointed for such meetings. Such notice shall state the date, time, and place of

such meetings and the purpose thereof.

9

Section 7. Special meetings of the Board of Trustees may be called by the President of the

Association on three days notice to each Trustee, given in the same manner as

provided in Section 6. of the by-laws. Special meetings of the Board shall be called by

the President or the Secretary in like manner upon the written request of any four

Trustees.

Section 8.

Before any meeting of the Board of Trustees, whether regular, general, or special,

any Trustee may, in writing, waive notice of such meeting and such waiver shall be

deemed equivalent to the giving of such notice. Attendance by a Trustee at any

meeting of the Board shall likewise constitute a waiver by him of such notice. If all

Trustees are present at any meeting of the Board, no notice of such meeting shall be

required and any business may be transacted at such meeting except as prohibited by

law or these by-laws.

Section 9. At all duly convened meetings of the Board of Trustees, a majority of the Trustees

shall constitute a quorum for the transaction of business except as otherwise expressly

provided in these by-laws or by law, and acts of the majority of the Trustees present at

such meeting at which a quorum is present, shall be the acts of the Board of Trustees.

If at any meeting of the Board of Trustees there shall be less than a quorum present,

the Trustees there present may adjourn the meeting and at any such adjourned meeting

at which a quorum is present, any business that might have been transacted at the

meeting as originally called, may be transacted without further notice to any Trustee

provided on the same as meeting was called.

Section 10. The Board of Trustees shall have and exercise all lawful powers and duties

necessary for the proper conduct and administration of the affairs of the Association

and the operation and maintenance of the Common Areas and may do or cause to be

done all such other lawful acts and things as are not by law, by these by-laws or

otherwise, directed or required to be done or exercised by members of the Association

or owners, or others. In the performance of its duties as the administering body of the

Association and of the Common Areas, the Board of Trustees shall have powers and

duties including, but not limited to the following:

(a) The operations, maintenance, renewal, replacement, care upkeep, protection and

surveillance of the Common Areas.

(b) The preparation prior to the beginning of each fiscal year of a budget or estimate

which shall include but not be limited to reasonable reserves for depreciation,

retirements and renewals.

10

The total amount of such budget or estimate shall be assessed against all of the owners. On or before

January 31st, the Association shall prepare and deliver or mail to each owner a statement showing the

amount owed.

(c) To use and expend any sums collected from such assessments or levies for the operation,

maintenance, renewal, care, upkeep, surveillance and protection of the Common Areas, and the

community of the Association and all of its real and personal property.

(d) To require all officers of the Association handling or responsible for funds of the Association or

funds in its possession or under its control to furnish adequate fidelity bonds, in form, penalties

and with corporate surety satisfactory to the Board of Trustees. The premiums on such bonds

shall be paid by the Association as part of the common expenses.

(e) To pay all taxes and assessments levied or assessed against any property of the association,

exclusive of any taxes or assessments levied against any owner of otherwise properly chargeable

to the owners thereof.

(f) To employ and dismiss such workmen, gardeners, and other personnel, and to purchase or

arrange for such services, machinery, equipment, tools, materials and supplies, as in the opinion

of the Board of Trustees may from time to time be necessary for the proper operation and

maintenance of the Common Areas, except for individually owned lots.

(g) To employ or retain legal counsel, engineers and accountants, and to fix their compensation

whenever such professional advice or services may be deemed necessary by the Board or any

proper purposes of the Association, including by not limited to those herein referred to in these

by-laws.

(h) To cause such operating accounts, and escrow and other accounts, if any, to be established and

opened as the Board of Trustees may deem appropriate from time to time and as may be

consistent with good accounting practices.

(i) The fiscal year of the Association shall begin on the first day of January in each year.

(j) 1. To cause a complete audit of the books and accounts of the Association to be

made by a competent certified public accountant at the end of each fiscal year,

and at such other time or times as may be deemed necessary. The Board of Trustees shall also

prepare at the end of each fiscal year and furnish to the owners a report of the business and

affairs of the Association, showing its transactions and reflecting fully and accurately its

financial condition.

2. To keep detailed books of account, in chronological order, of the receipts and

expenditures affecting the Common Areas and its administration and specifying

the maintenance and repair expenses incurred.

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(k) To make and enforce compliance with reasonable rules and regulations relative to

the operation and use of the Common Areas, and to amend the same from time to

time as the Board shall deem necessary or appropriate, which rules and regulations

when approved by appropriate resolutions shall be binding on the owner, their

successors in title and assigns. A copy of such rules and regulations and copies of

any amendments thereof shall be delivered or mailed to each owner promptly upon

the adoption thereof.

(l) The Board of Trustees shall also maintain liability insurance insuring the

Association and its members against liability for any negligent act of commission

or omission attributable to the Association or any of its members which occurs on

or in any of the Common Areas. The Board shall also maintain workmen's

compensation insurance, and such other insurance as will protect the interest of the

Association and the members. All insurance premiums shall be paid by the

Association as a common expense.

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BLOCK CAPTAINS AND ALTERNATES

Duties and Functions: 1. To act as liaison between the Board and residents in their respective Courts.

They shall serve as the initial person and central source to who the residents

direct their grievances, suggestions, and other matters which the residents want

to bring before the Board.

2. The Block Captains and the Alternates shall have direct access to any member of

the Board and shall meet in regularly scheduled meetings with the Board to

present all communications from the residents in their Courts.

3. All grievances, suggestions, and questions by the residents must be made in

written form.

4. The Block Captains and the Alternates shall serve as the clearing center in their

respective courts for receiving and distributing all communications, bulletins,

notices, newsletters and other information issued by the various divisions of the

Squire Village Association. Block Captains in each court may organize a

committee to expedite these phases of their duties.

5. The Block Captains and the Alternates shall meet with the Board every first

Thursday of each month. Special meetings of Block Captains and the Board may

be called by the Board or by written request signed by 15% of the Block Captains

and the Alternates.

6. The Block Captains and/or Alternates shall be appointed by the Board to a term

of 2 years with provisions to re-appoint the incumbent members to additional 2

year tenures.

7. The residents of any court may choose, in lieu of paragraph 6, to elect their Block

Captain and/or Alternates by petitioning the Board for a special election. The

petition must be in written form and signed by 15% of the courts residents.

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ARTICLE III

PROPERTY RIGHTS IN COMMON AREAS

Section 1. Members' Easements of Enjoyment. Subject to the provisions of Section 3

of this Article III every Member shall have a right and easement of enjoyment in and to the

Common Areas and the common easements designated in Exhibit "B", and such right of

easement shall be appurtenant to and shall pass with the title to every lot.

Section 2. Title to Common Areas. The Developer hereby covenants for itself, its heirs

and assigns, that simultaneously with the conveyance for the last Lot or earlier, at the option of

the Developer, it will convey by Special Warranty Deed fee title to the Common Areas to the

Association free and clear of all encumbrances and liens, except those created by or pursuant to

this Declaration, subject, however, to the following covenant which shall be deemed to run

with the land and shall be binding upon the Association, its successors and assigns.

In order to preserve and enhance the property values and amenities

of the community, the Common Areas and all facilities now or here-

after built or installed thereon shall at all times be maintained in

good repair and condition and shall be operated in accordance with

high standards. Further, it shall be an express affirmative obligation

of the Association to keep all recreational facilities open and

operating during those months and during such hours as outdoor

recreational areas are normally in operation in this locality.

Section 3. Extent of Members' Easements. The rights and easements of enjoyment

created hereby shall be subject to the following:

(a)the rights of the Association, in accordance with its Articles and by-laws, to borrow money for the

purpose of improving and maintaining the Common Areas and Common Easements and the rights of

such mortgagee in said Common Areas shall be subordinate to the rights of the Owners hereunder;

(b)the right of Association to take such steps as are reasonable necessary to protect the above-

described properties against foreclosure;

(c)the right of the Association, as provided in its Articles and by-laws, to suspend the enjoyment rights

of any Member for any period during which any assessment remains unpaid, and for any period not to

exceed thirty days for any infraction of its published rules and regulations;

(d)the right of the Association to dedicate or transfer all or any part of the Common Areas to any

public agency subject tot the express approval by such public agency, authority or utility for such

purposes and subject to such conditions as may be agreed to by the Members, provided that no such

dedication or transfer, determination as to the purposes or as to the conditions thereof, shall be

effective. 1)unless written notice of the action is sent to every Member at least sixty days in advance of

any action taken; and

(2)two-thirds of the membership shall approve of such action in writing.

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(e)the right of the Association to grant and reserve easements and rights-of-way

through, under, over and across the Common Areas, for the installation, maintenance

and inspection of lines and appurtenances for public or private water, sewer, drainage,

fuel oil and other utilities; and

(f)the right of the Developer to grant and reserve easements and rights-of-way through,

under, over and across the Common Areas and lots which have not yet been conveyed

to Owners for the installation, maintenance and inspection of lines and appurtenances

for public or private water, sewer, drainage, fuel oil and other utilities.

PARAPHRASE AND EXPLANATION OF THIS SECTION:

The Common Areas provided for the feeling of spaciousness and freedom are

jointly owned by all the members of the Community. The death of the Developer has

made it necessary to make special arrangements to secure title to the Common Areas.

This was completed on August 15, 1981.

The maintenance of the Common Areas is provided for in part from monies paid

by the Members in the form of a yearly fee. Insurance is carried by the Association for

its protection. Each member should consider it a privilege to protect the Common

Areas from change or modification of any kind.

Added to by Amendment Committee Sept. 1981.

(g)the use of the Common Areas by any motorized vehicle is strictly forbidden.

Owners of motorcycles, mopeds, etc. may ride only on their own property.

(h)the dumping of garbage, building materials, furniture, and flammable materials is

forbidden.

(i)no fires are allowed in the Common Areas.

(j)the Association reserves the right to spray, fertilize, plant trees, etc. in the Common

Areas and in general to do all those things required to maintain the common land in its

pristine state.

(k)express permission of the Board of Directors is required for the removal of trees, the

building of fences or structures or any other action that would change the natural state

of the Common Areas.

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ARTICLE IV

COVENANT FOR MAINTENANCE ASSESSMENTS

Section 1. Creation of the Lien and Personal Obligation of Assessments. The Developer, for each Lot

owned by it within The Properties, hereby covenants and each subsequent Owner of any such Lot by

acceptance of a deed therefore, whether or not it shall be so expressed in any such deed or other

conveyance, shall be deemed to covenant and agree to pay to the Association: (1) Annual assessments

or charges, (2) special assessments for capital improvements, such assessments to be fixed,

established, and collected from time to time as hereinafter provided. The annual and special

assessments, together with such interest thereon and costs of collection thereof as are hereinafter

provided, shall be a charge on the land and shall be a continuing lien upon the Lot against which each

such assessment is made. Each such assessment, together with such interest thereon and cost of

collection thereof as are hereinafter provided, shall also be the personal obligation of the person who

was the Owner of such property obligation at the time when the assessment fell due. The provisions of

this Section shall not merge in any deed or other instrument affecting title to the Properties which shall

subsequently be executed hereunder.

EXPLANATION: In the incorporation of the Association as required by NJ state law, special care was taken to

insure that the Association would have funds necessary to carry out its purpose. It also insured that

there would be equality in the sharing of responsibility. By acceptance of the deed, each owner

assumes an obligation to pay an annual fee (cf. Sect.2). In the case where an individual owner chooses

to shirk his obligation, provision is made to insure his payment by the creation of a lien on his

property.

Section 2. Purpose of Assessment. The Assessments levied by the association shall be used

exclusively for the purpose of promoting the recreation, health, safety, and welfare of the residents in

the Properties and in particular for the improvement and maintenance of properties, services, and

facilities devoted to this purpose and related to the use and enjoyment of the Common Areas and the

Common Easements including, but not limited to, the payment of taxes and insurance thereon except

as to the Common Easements, and repair, replacement, and additions thereto, and for the cost of labor,

equipment, materials, management and supervision thereof.

EXPLANATION: The money received from the members is to be used exclusively for promoting the good of the

Association. For example; paying taxes on and providing insurance coverage for the Common Areas.

Section 3. Basis and Maximum of Annual Assessments. Commencing with the conveyance of the

first Lot to an Owner and until the 1st day of January, or the year immediately following such

conveyance, the annual assessment (which must be fixed at a uniform rate for all Lots) shall be at the

rate of TWENTY FIVE DOLLARS ($25.00) per Lot from and after January 1 1970 the annual

assessment may be adjusted as hereinafter provided for the next succeeding three years and at the end

of each such period of three years for each succeeding three years.

16

The Board of Trustees of the Association may, after consideration of current maintenance costs

and future needs of the Association, fix the actual assessment for any year at a lessor amount provided

that it shall be an affirmative obligation of the Association and its Board of Trustees to fix such

assessments at an amount sufficient to maintain and operate the Common Areas and Common

Easements and facilities.

The Developer shall be exempt from the payment of any annual assessment or charge with

respect to any Lots owned by it unless the annual assessments levied upon the Owner of all other Lots

shall be insufficient in the aggregate to cover the actual costs of maintaining all Lots. Common Areas

and Common Easements to the extent imposed upon the Association in this Declaration. In case of

any such insufficiency, the Developer shall be responsible for the payment of same, not to exceed the

total annual assessments and charges it would otherwise be required to pay if this exemption did not

exist. In any event, the obligation of the Developer shall cease with respect to any Lot upon the

conveyance thereof by the Developer to an Owner. EXPLANATION:

Annual assessment is currently set at $70.00. The Board raised it, with support of voting

member, to meet current and future expenses.

PARAGRAPH BEGINNING "THE DEVELOPER SHALL BE EXEMPT ............UPON THE CONVEYANCE THEREOF BY THE DEVELOPER TO AN OWNER." TO BE DELETED.

Section 4. Special Assessments for Capital Improvements. In addition to the annual assessments

authorized by Section 3 of this Article IV, the Association may levy in any assessment year (as

hereinafter defined in Section 7) special assessment (which must be fixed at a uniform rate for all lots)

applicable to that year only, in an amount no higher that the maximum annual assessment then

permitted to be levied hereunder, for the purpose of defraying, in whole or in part, the cost of any

construction or reconstruction, unexpected repair or replacement of a described capital improvement

upon the common areas or common easements including the necessary fixtures and personal property

related thereto, provided that any such assessment shall have the assent of two-thirds of all votes cast

who are voting in person or by proxy at a meeting duly called for this purpose, written notice of which

shall be sent to all Members not less than thirty days nor more than sixty days in advance of the

meeting setting forth the purpose of the meeting.

EXPLANATION:

If, in the future, the Association decided to make any capital improvements or unexpected

repairs on its areas, provision is made in this section for collecting extra moneys from the membership.

This extraordinary assessment is currently limited to no more than the annual assessment.

Section 5. Change in Maximum of Annual Assessments. The Board of Trustees of the Association

may prospectively increase the maximum of the annual assessment (fixed by Sect. 3 hereof) to $40.00

per lot.

The Association may prospectively increase the maximum of the assessments above such

amount, provided that any such change shall have the assent of two-thirds of all votes cast who are

voting in person or by proxy, at a meeting duly called for this purpose, written notice of which shall be

17

sent to all Members not less than thirty days or more than sixty days in advance of the meeting setting

forth the purpose of the meeting. EXPLANATION:

The Board of Trustees of the Association may increase the maximum of the annual assessment

to $40.00 per lot. Any change in the maximum to higher than $40.00 must be voted upon by the

Members.

Section 6. Quorum for any Action Authorized Under Section 4 and 5. The quorum required for any

action authorized by Section 4 and 5 of the Article IV, shall be as follows:

At the first meeting called, as provided in Sections 4 and 5 of this Article IV, the

presence at the meeting of Members or of proxies, entitled to cast sixty percent of all

the votes of each class of membership constitute a quorum. If the required quorum is

not forthcoming at any meeting, another meeting may be called, subject to the notice

requirements set forth in Sections 4 and 5, and the required quorum at such subsequent

meeting shall be one-half of the required at the previous meeting. Such meetin shall not

be held more than sixty days following the preceding meeting. At the meeting

following any meeting at which the necessary quorum was present, sixty percent of all

votes of each class shall again constitute a quorum.

EXPLANATION: This section determines, legally, how a quorum is to be determined.

Section 7. Date of Commencement of Annual Assessments. Annual assessment period shall

commence on January 1 of each year.

Due Dates. Said assessment shall be payable quarterly in advance on January 1, April 1, July 1, and

October 1 of each year.

Apportionment. Annual assessments shall be adjusted, apportioned and allowed as of the date of the

delivery of the deed from the Developer to each Owner.

The Association may prospectively adjust the maximum of the assessments above such

amount, provided that any such change by proxy, at a meeting duly called for this purpose, written

notice of which shall be sent to all Members not less than thirty days not more than sixty days in

advance of the meeting setting forth the purpose of the meeting.

At the acquiring of title to a Lot from the Developer each Owner acquiring such title shall

deposit with the Association an amount equal to one fourth of the annual assessment at the time then

in effect to provide for the initial costs of maintaining the Association, in addition to the foregoing

apportionment.

The due date of any special assessment under Section 4 hereof shall be fixed in the resolution

authorizing such assessment.

The Association shall have the right to make arrangements with permanent mortgage lenders

whereby Owners shall remit the monthly assessment together with principal, interest and other

payments which may be required by the mortgagee, which sums paid on account of such assessments

18

shall be retained in escrow by the mortgagee for the benefit of the Association. EXPLANATION:

This paragraph sets the dates when the annual assessments comes due. A CHANGE IS

PROPOSED IN PARAGRAPH 1 TO READ "ANNUAL ASSESSMENTS SHALL BE

ADJUSTED, APPORTIONED AND ALLOWED AS OF THE DATE OF THE DELIVERY OF

THE DEED." A second change – DELETE ENTIRE PARAGRAPH "AT THE ACQUIRING OF

TITLE TO A LOT ............... IN ADDITION TO THE FOREGOING APPORTIONMENT."

Section 8. Duties of the Board of Trustees. In the event of any change in the annual assessments as

set forth herein, the Board of Trustees of the Association shall fix the date of commencement and the

amount of the assessment against each Lot for each assessment period at least thirty days in advance

of such date or period and shall, at that time, prepare a roster of the Lots and assessments applicable

thereto which shall be kept in the office of the Association and shall be open to inspection by any

Owner.

Written notice of the assessment shall hereupon be sent to every Owner subject thereto.

The Association shall, upon demand at any time, furnish to any Owner liable for said

assessment a certificate in writing signed by an Officer of the Association, setting forth whether said

assessment has been paid. Such certificate shall be prima facie evidence of payment of any

assessment therein stated to have been paid.

EXPLANATION:

This section states that the Board of Trustees has the obligation to set the dates for assessments,

keep records and confirm all payments of assessment. A PROPOSED CHANGE IN THE FIRST

PARAGRAPH THE PHRASE – IN THE OFFICE – to be changed to "BY THE OFFICERS".

Section 9. Effect of Non-Payment of Assessment. The Personal Obligation of the Owner: The Lien,

remedies of Association. If any assessment is not paid on the date when due (being the dates

specified in Section 7 hereof), then such assessment shall be deemed delinquent and shall, together

with such interest thereon and cost of collection thereof as are hereinafter provided, continue as a lien

on the Lot which shall bind such Lot in the hands of the then Owner, his heirs, devisees, personal

representatives, successors and assigns. The personal obligation of the then Owner to pay such

assessment, however, shall remain his personal obligation and shall not pass to his successors in title

unless expressly assumed by them.

If the assessment is not paid within thirty days after the delinquency date, the assessment shall

bear interest from date of delinquency at the rate of seven and on-half per cent (7 1/2) per annum and

the Association may bring legal action against the Owner personally obligated to pay the same or

may enforce or foreclose the lien against the property; and in the event a judgment is obtained, such

judgment shall include interest on the assessment as above provided and a reasonable attorney's fee

to be fixed by the court together with the costs of the action.

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EXPLANATION: This section provides for collection of yearly fees and costs if any owner is found

delinquent in payment.

Section 10. Subordination of the Lien to Mortgages. The lien of the assessments

provided for herein shall be subordinate to the lien of any mortgage or mortgages now

or hereafter placed upon The Properties subject to assessment @ provided, however,

that such subordination shall apply only to the assessments which have become due

and payable prior to a sale or transfer of such property pursuant toa decree of

foreclosure, or any other proceeding in lieu of foreclosure. Such sale or transfer shall

not relieve such property from liability for any assessments thereafter becoming due,

nor from the lien of any such subsequent assessment.

EXPLANATION: This section explains precisely what the Association may do, legally, to collect

overdue payments.

Section 11. Exempt Property. The following properties subject to this Declaration

shall be exempted from the assessments charge and lien created herein: (a) all

properties dedicated to and accepted by a governmental body, agency or authority, and

devoted to public use; (b) all Common Areas as defined in Article I, Section 1, hereof.

Notwithstanding any provisions herein, no land or improvements devoted to dwelling

use shall be exempt from said assessments, charges of liens. EXPLANATION:

This section states clearly what properties are exempt or not exempt from

assessment. Common Areas are clearly exempted.

20

ARTICLE V

ARCHITECTUAL CONTROL

No building, fence, wall or other structure shall be commenced, erected, or

maintained upon The Properties, not shall any exterior addition thereto or change or

alteration thereto be made until the plans and specifications showing the nature, kind,

shape, height, materials, color and location of the same shall have been submitted to

and approved in writing as to harmony of external design and location in relation to

surrounding structures and topography by the Board of Trustees of the Association, or

by an architectural committee composed of three or more representatives appointed by

the Board. In the event said Board, or its designated committee, fails to approve or

disapprove such design and location with in thirty days after said plans and

specifications have been submitted to it, approval will not be required and this Article

will be deemed to have been fully complied with. EXPLANATION:

Any procedure requiring a building permit in the area of the Squire Village

Association requires a review by the Board or Architectural Committee. The

Committee has the obligation of protecting the harmony of the area and safeguarding

the value of the member's property. Members contemplating a procedure requiring a

building permit are advised to alert the Board or Committee in order to avoid any

delay in the issuance of the permit.

21

ARTICLE VI

USE OF PROPERTY

Section 1. Uses and Structures. No Lot shall be used except for residential purposes. No building

shall be erected, altered, placed or permitted to remain on any Lot other than one attached single-

family dwelling not exceeding two and one half stories in height. No detached garage, carport or

accessory building may be erected. An attached addition to the dwelling may be erected but only on

condition that is shall not project (a) beyond the front wall of the dwelling or structure as originally

erected by the Developer (b) more than ten feet beyond the rear wall of the dwelling or structure as

originally erected by the Developer exclusive of any attached storage shed, and (c) that it and any

breezeway or other structure connecting it with the dwelling shall conform in architecture, material

and color to the dwelling, and upon further conditions set forth in Section 2 hereof. No dwelling or

any part thereof shall be used for any purpose except as a private dwelling for one family, not shall

any business of any kind be conducted therein. No motor vehicle other than a private passenger type

shall be garaged or stored in any garage or carport, or any Lot, or regularly parked in residential

areas. No business or trade or any kind or noxious or offensive activity shall be carried on upon any

Lot nor shall anything be done thereon which may be or become an annoyance or nuisance to the

neighborhood. No trailer, tent shack or other such structure shall be located, erected or used on any

Lot, temporarily or permanently.

EXPLANATION:

Activities permitted in residential areas are governed by the regulations of Dover Township.

Possible amendment; Change the sentence "No detached garage.....may be erected without the

permission of the architectural committee." cf. Art. V. Suggested amendment: DELETE the whole

section of (b) as written. This is covered by existing township ordinances of set back relations.

"Business" as used in this section will be defined by the township ordinance. cf. Book of Township

Ordinances pp. 101-107 and art 101-5-26. Suggested amendment: "No trailer, tent shack or other

structure built....in lieu of a permanent dwelling.... etc."

Section 2. Alterations, Additions and Painting.

(a) No building, structure, dwelling, garage, carport, or breezeway shall be erected nor shall

any alteration or addition to or repainting of the exterior thereof be made unless it shall

conform substantially in architecture and material to the dwelling as originally constructed

by the Developer, and shall have been approved by the Architectural Committee as set

forth in Article V hereof.

(b) Any change in exterior paint color from that originally furnished by the Developer shall be

subject to the approval of the Architectural Committee as set forth in Article V hereof.

EXPLANATION:

In the heading DELETE "and painting". Section will have no (a) and (b). (b) will be dropped

in its entirety. In the first paragraph, originally marked (a) the words "or repainting of" will be

DELETED.

22

Section 3. Signs. No Sign of any kind shall be displayed to the public view on any dwelling or Lot

except a one-family name or professional sign. No such sign shall be illuminated except by non-

flashing white light emanating from within or on the sign itself and shielded from direct view. No

sign advertising sale or rent of any property shall be permitted until January 1, 1973, but such signs

shall thereafter be permitted provided that such sign shall not exceed five square feet in area.

EXPLANATION:

The last sentence to be changed to read "Signs advertising property for sale or rent shall be

permitted provided that such sign shall not exceed five square feet in area."

Section 4. Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept in any

dwelling or on any Lot except that dogs, cats or other domesticated household pets may be kept,

provided that they are not kept, bred or maintained for any commercial purpose and provided that not

more than two pets in the aggregate may be kept in any such dwelling or Lot.

EXPLANATION: Accepted as is.

Section 5. Fences. An ornamental corner fence or not more than two sides, no one side of which is

longer than ten feet or higher than three feet is permitted on each corner Lot, subject to approval of

the Architectural Committee. With the exception of said corner fences fabricated or living fences are

prohibited on any part of the Lot.

EXPLANATION:

Added to the last sentence shall be the phrase "unless required by the Dover Township

regulations".

Point of Interest There has been a few isolated cases within the community where homeowners have

inadvertently constructed an accessory building, pools, fences, etc. in violation of the current Set-

back requirements as mandated by the Dover Township Zoning Ordinance. To avoid the possibility

of future encroachments, the Architectural Committee has compiled the following Schedule of

minimum requirements.

Zone – R-200 – (Cluster – reduced lot size development)

Principal building or addition to principal building:

Min. front setback -- 40' Min. rear setback -- 30'

Min. side setback -- 10' from one side combined 25'.

Accessory building Side: 10'

Front: 40'

Rear: 15'

Swimming pools Side: 10'

Front: 40'

Rear: 10'

Accessory building less than 100 s.f. : 3' from side or rear line.

23

Fences -- Not to exceed 30 inches in height when located within the front yard area.

Not to exceed 6 feet in height when located within the side or rear yard

area.

All fences are to be located within the property line.

All supporting members shall be located on the inside of the fence and

shall face the principal portion of the tract of land upon which the fence is

erected.

Section 6. Laundry Lines. Laundry poles and lines outside of houses are prohibited

except that one portable laundry dryer, not more than seven feet high, may be used in

the rear yard of each dwelling on days other than Sunday and legal holidays; and such

dryer shall be removed from the outside when not is actual use. EXPLANATION:

Acceptable as is.

Section 7. Easements. Perpetual easements for the installation and maintenance of

sewer, gas, and drainage facilities, for the benefit of the adjoining land owners and/or

municipality and/or municipal or private utility company ultimately operating such

facilities, are reserved as shown on the subdivision Map of The Properties filed with

the County Clerk of Ocean County, New Jersey; also, easements in general in and over

each Lot for the installation of electric, gas and telephone facilities. No building or

structure shall be erected within the easement areas occupied by such facilities.

EXPLANATION:

Acceptable as is.

24

ARTICLE VII

GENERAL PROVISIONS

Section 1. Duration and Amendment. The covenants and restrictions of this

Declaration shall run with and bind the land, and shall inure to the benefit of and be

enforceable by the Association, or the Owner of any land subject to this Declaration,

their respective legal representatives, heirs, successors, and assigns, until December

31, 1999, unless otherwise expressly limited herein, after which time said covenants

shall be automatically extended for successive periods of ten years each unless an

instrument signed by the ten Owners of two thirds of the lots has been recorded,

agreeing to change said covenants and restrictions in whole or in part. Provided,

however, that no such agreement to change shall be effective unless made and

recorded tow years in advance of the effective date of such change and unless written

notice of the proposed agreement is sent to every Owner at least ninety days in

advance of any action taken. Unless specifically prohibited herein, Article I through

VII of this Declaration may be amended by an instrument signed by Owners holding

not less than ninety percent of the votes of the Owners holding not less than two-thirds

of the votes of the membership. Any amendment must be properly recorded to be

effective.

Section 2. Notices. Any notice required to be sent to any Member or Owner under the

provisions of this Declaration shall be deemed to have been properly sent when

mailed, postpaid to the last known address of the person who appears as Member or

Owner on the records of the Association at the time of such mailing.

Section 3. Enforcement. The Association or any Owner shall have the right to

enforce these covenants and restrictions by any proceeding at law or in equity, against

any person or persons violating or attempting to violate any covenant ore restriction to

restrain violation, to require specific performance and/or to recover damages; and

against the land to enforce any lien created by these covenants; and failure by the

Association or any Owner to enforce any covenant or restriction herein contained shall

in no event be deemed a waiver of the right to do so thereafter. The expense of

enforcement by the Association shall be chargeable to the Owner of the Lot violating

these covenants and restrictions shall constitute a lien on the Lot, collectible in the

same manner as assessments hereunder.

Section 4. Severability. Invalidation of any one of these covenants or restrictions by

judgment or court order shall in no way affect the validity of any other provisions

which shall remain in full force and effect.

25

ARTICLE VIII

RESTRICTIVE COVENANTS PERTAINING TO COMMON AREAS

The Common Areas shall be utilized for purposes of recreation only and no

house, garage, hut or similar structure shall be permitted upon the said Common Areas

without the express consent of the Association.

IN WITNESS WHEREOF, the undersigned being the Developer herein, has

caused its seal to be hereunto affixed and these presents to be signed by its officer

thereunto duly authorized the day and year first above written.

ATTEST:

LOCKMERE CORPORATION

BY

Secretary President

EXHIBIT "A"

ALL that certain plot piece or parcel of land, situate, lying and being in the Township

of Dover, County of Ocean and State of New Jersey being more particularly described

as follows:

BEGINNING at a point where the northwesterly line of Hooper Avenue (Ocean

County Route No. 549), which road is 80 feet in width, is intersected by the westerly

line of Jefferson Heights as shown on a may entitled "Final Map of Jefferson Heights,

Dover Township, Ocean County, N.J.", scale:1"=100', dated July 11, 1965, which map

was filed with the Ocean County Clerk 3 March 1966 as map NO. E-25. Thence from

side place of beginning:

1. South 60° 18'02" West, along the northwesterly line of the said Hooper Avenue,

624.10 feet to a point thence

2. North 29° 41'58" West 545.86 feet to a point; thence

3. South 23° 38'59" West 223.76 feet to a point; thence

4. North 68° 07'17" West 1315.96 feet to a point; thence

5. North 07° 18'43" East 1138.50 feet to a point; thence

6. North 68° 07'17" West 692.63 feet to a point; thence

7. North 25° 17'19" East 1103.86 feet to a point; thence

8. South 68° 07'17" East 2463.85 feet along the boundary of land owned by Ocean

County College to a point; thence

9. South 11° 29'08" West 1277.78 feet along the westerly boundary of Jefferson

Heights to a point; thence

10. South 10° 01'27" East continuing along the westerly boundary of Jefferson

Heights 676.13 feet to the point of beginning.

Containing 118.06 acres.