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VILLAGE OF KIRYAS JOEL

Restrictive Covenant, Easement and Development Agreement

THIS AGREEMENT, made the __ day of _________ 2012, by and between the VILLAGE
OF KIRYAS JOEL, a Municipal Corporation, duly organized and existing under the laws of the State
of New York, having its principal place of business at 51 Forest Road, P. O. Box 566, Monroe, New
York 10949, hereinafter referred to as the "Village", and _______________________, with offices at
____________________ hereinafter referred to as Outside User; said Agreement being as follows:

WHEREAS, Outside User proposes to construct a residential development (Development)
with an Initial Dwelling Unit Projection of approximately ___ units (IDUP); and

WHEREAS the lands on which the Development is proposed consist of approximately __
acres located in the Town of Monroe (Town), with an address of _______________________ also
known as Tax Map Section __, Block __, and Lot ___, all as more specifically described in Exhibit
A annexed hereto (Development Site); and

WHEREAS, the Outside User proposes to extend a water main from the Village of Kiryas
Joel Water Supply System (Village Water Supply System) to service the Development and to
construct such other infrastructure as needed to provide water for the Development (Development
Water Supply System); and

WHEREAS, the Village Water Supply System presently provides water service to properties
in the general vicinity of the Development Site; and

WHEREAS, the Village is authorized by New York State Village Law Section 11-1120 to sell
to a corporation, individual or water district outside the Village the right to make connections with
the water mains of the Village and the Village Water Supply System for the purpose of drawing water
therefrom and to fix the prices and conditions therefor; and

WHEREAS, approval by the Board of Trustees of the Village is required for any such
extension of water service; and

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WHEREAS, the Village has borne major costs and expense to develop and maintain the
Village Water Supply System including developing sources, providing purification and filtration,
providing storage, distribution and pressure; and

WHEREAS, the Village has authorized and incurred significant long term debt for the
existing Village Water Supply System and for future improvements; and

WHEREAS, the Village needs revenues to pay the costs for debt service, improvements,
operation and maintenance of the Village Water Supply System; and

WHEREAS, the Village desires to spread such costs over more users in order to more
equitably distribute costs and burdens and reduce the costs that would otherwise be borne by Village
residents and property owners for such improvements to the Village Water Supply System; and

WHEREAS, the Village Water Supply System has or will have the water capacity to meet its
obligation under this Agreement; and

WHEREAS, the Village has undertaken and continues to provide facilities and other services
that have been and will be made available to owners and residents of properties who are connected to
the Village Water Supply System, all at considerable expense and projected expense to the Village;
and

WHEREAS, the intent of this agreement is to provide a mechanism to provide a source of
water supply for the Development, as well as to raise revenues for improvements, infrastructure, and
services related to the Village Water Supply System and other capital projects and services; and

WHEREAS, the Village may require strips of land for street widening or easements for the
purpose of installing utilities, sidewalks, infrastructure and other improvements, as well as to protect
the public and maintain or enhance public safety, and to provide for offers of dedication and
conveyance of such lands or interests in such lands as may be required for such purposes; and


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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
PROMISES SET FORTH HEREIN, IT IS AGREED AS FOLLOWS:

1. DESIGN

(a) Outside User shall be solely responsible for the design and permitting of the proposed
Development Water Supply System and connection to the Village Water Supply System, subject to
the approval and cooperation provisions contained in this Agreement.

(b) Outside User shall submit the design and engineering plans for the Development Water
Supply System, and all revisions thereof, to the Village for review and approval.

(c) Such review and approval by the Village shall not constitute any warranty or guarantee of
the design of the Development Water Supply System and the Outside User and its consultants shall
have the sole responsibility for the development of the design of the Development Water Supply
System.

(d) The design of the Development Water Supply System shall conform to all applicable
governmental requirements, including but not limited to the Villages water rules and regulations and
the Villages street specifications.

(e) If the Development Site has an existing well or wells that serves one or more existing
dwelling units, then such dwelling unit or units may continue to be served by that well until such time
as any new dwelling units on the Development Site are constructed.

(f) Upon construction of any new dwellings units, all dwelling units, including pre-existing
units, shall be connected to and served by the Development Water Supply System and any existing
wells shall be offered to be dedicated to the Village by the Outside User at no cost or expense to the
Village.

(g) If the Village accepts such dedication, then the Outside User shall transfer title to the
existing well or wells to the Village.

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(h) Under no circumstances shall a private well or water supply be used to serve any dwelling
unit on the Development Site after the first new dwelling unit is constructed.

2. IMPROVEMENTS

The Outside User agrees to install at its cost and expense the Development Water Supply
System and all associated improvements, mains, appurtenances and mitigation measures required by
the Village or necessary to effectuate this Agreement, all to be in conformance with all applicable
governmental regulations and standards, including but not limited to AWWA, NYSDOH, and Village
standards. Those required improvements are identified as follows:
i. Laying and installing below ground a 12 inch water main.
ii. Construction of a water meter pit located on the Outside User property line.
iii. Installation of the water meter within the meter pit.
iv. Installation of the back flow prevention system within the meter pit.
v. Installation of a master shut off valve and individual shut off valves.
vi. Installation of fire hydrants.

3. COSTS, FEES AND EXPENSES

The Outside User shall be responsible for all costs and expenses, including without limitation,
all professional, legal and engineering fees, incurred by the Village in connection with this
Agreement and the provision of water service to the Development. Those costs, expenses and fees,
include, but are not limited to, the following categories:
i. Those incurred by the Village for the review of the design of the proposed
Development Water Supply System and any revisions thereof.
ii. Those incurred by the Village for the inspection of the Development Water Supply
System and its associated improvements.
iii. Those incurred in order to obtain all required governmental approvals, including but
not limited to federal, state, county and local permits and approvals for the
Development Water Supply System, the connection to the Village Water Supply
System, and installation of the Development Water Supply System.
iv. Those incurred by the Village for the preparation and finalization of this Agreement.

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v. All connection fees as required by the Village as stated in paragraph 7 below.
vi. At the time that the Outside User seeks permission from the Village to physically
connect the Development to the Village Water Supply System, the Outside User shall
establish an escrow with the Village, which shall be replenished when requested by the
Village, against which the Village shall deduct costs, expenses, and fees.

4. MATERIALS

The Outside User shall purchase from the Village the meter, fittings, and such other materials
that the Village requires for use in construction of the improvements set forth in this Agreement.
There shall be a master meter and separate meters for each dwelling unit.

5. TOWN WATER DISTRICT FORMATION

(a) Unless the Development Site is annexed to the Village, the Outside User shall petition the
Town Board of the Town of Monroe to form a new water district to include the Development Site.

(b) The District, whether actual work is done by the Town or the Village, will operate and
maintain the Development Water Supply System.

(c) Approval by the Town and execution of an agreement between the Town and Village
shall be a condition precedent to the service of the Development by the Village Water Supply System
and connection of the Development Water Supply System to the Village Water Supply System in the
absence of annexation of the Development Site into the Village.

(d) Such water district shall provide such services and benefits as are provided in other Town
of Monroe water districts.

6. NEW YORK STATE REGULATORY APPROVALS

All applications for New York State agency approvals shall be prepared and pursued by the
Outside User and the Village agrees to participate at the Outside User's cost and expense in any

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applications, permits and approvals necessary to approve the Development Water Supply System and
the connection to the Village Water Supply System.

7. CONNECTION FEES

(a) Except as modified and supplemented below, the base connection fee for each dwelling
unit in the Development payable by the Outside User to the Village is established at Twenty-Five
Thousand Dollars ($25,000.00) for each dwelling unit. The base connection fee of twenty-five
thousand dollars shall be paid as follows:
i. Five thousand dollars ($5,000) for each dwelling unit in the IDUP upon the execution
of this Agreement.
ii. Five thousand dollars ($5,000) for each approved dwelling unit at the time of granting
of subdivision and/or site plan approval by either the Village or the Town of Monroe.
iii. Five thousand dollars ($5,000) for each approved dwelling unit upon the grant of a
building permit from the Village or the Town of Monroe.
iv. Ten thousand dollars ($10,000) for each approved dwelling unit prior to the issuance
of a certificate of occupancy by the Village or the Town of Monroe.

(b) If the approved subdivision or site plan authorizes a number of dwelling units that
exceeds the IDUP by more than thirty percent (30%), then for each dwelling unit in excess of the
IDUP the Outside User shall pay a base connection fee of thirty thousand dollars ($30,000 dollars)
payable in three equal ten thousand dollar ($10,000) installments; the first being at the time of
subdivision and/or site plan approval, the second upon the grant of a building permit, and the third
prior to the issuance of a certificate of occupancy.

(c) The base connection fee established in Paragraphs (a) and (b) shall be applicable to
dwelling units that contain a minimum of 2,500 square feet and a maximum of 3,000 square feet.

(d) All space in the dwelling unit shall be counted except for attics or cellar crawlways with a
floor to ceiling height of less than seven feet, mechanical rooms, and unfinished storage areas.


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(e) If a dwelling unit is less than 2,500 square feet, then the applicable base connection fee
shall be reduced by seven dollars ($7.00) per square foot for each square foot that a dwelling unit is
less than 2,500 square feet.

(f) If a dwelling unit is more than 3,000 square feet, then the applicable base connection fee
shall be increased by ten dollars ($10.00) per square foot for each square foot that a dwelling unit is
more than 3,000 square feet.

(g) If the number of dwelling units in the approved subdivision or site plan is less than the
IDUP, then the Outside User will be credited the initial payment of five thousand dollars ($5,000) per
dwelling unit for the difference between the dwelling units approved in the subdivision and/or site
plan approval and the IDUP. This credit of the initial payment shall be applied toward the Outside
Users required payments at the time of issuance of building permits.

(h) The applicable base connection fee shall be payable for each and every dwelling unit,
even if a property owner in the Development in the future adds an additional dwelling unit to an
existing building.

(i) A dwelling unit shall be that portion of a building adapted for the use of a traditional
family of parents and children. Mother/daughter dwellings are considered two units for purposes of
this Agreement. The determination by the Village of the existence of a dwelling unit shall be final.

(j) In the event an additional dwelling unit is created at any time, the Village shall be entitled
to bill, levy, and collect the base connection fee for such unit from the property owner as an
additional water charge in the same manner and on the same basis as other such water user charges or
upon the tax bill.

(k) The connection fee amounts established in this Section are set for five years from the date
of this agreement. Any connection fee payment made after five years from the date of this agreement
shall be increased each year by the same percentage as the Consumer Price Index beginning after the
end of the fifth year.


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(l) If the Development Site is annexed to the Village, then no certificate of occupancy shall
be issued for a dwelling unit unless the connection fee has been paid in full and the Outside User
shall cause a map note to such effect to be placed on the final recorded subdivision plat or approved
site plan.

(m) If the Development Site is not annexed to the Village, then the Outside User shall not
apply to the Town of Monroe for a certificate of occupancy until the connection fee has been paid in
full and the Outside User shall cause a map note to such effect to be placed on the final recorded
subdivision plat or approved site plan.

(n) This Agreement requires that the water provided hereunder shall be used solely for
residential purposes. The Outside User cannot use any water provided hereunder for commercial,
institutional, or industrial use without the prior express written permission from the Village Board. If
the Village Board, in its sole and complete discretion, approves such commercial, institutional or
industrial use, then the Outside User shall pay a connection fee of a minimum of fifty thousand
dollars ($50,000) for each equivalent dwelling unit as determined by the Village, which
determination shall be final and binding upon the Outside User. In addition the Village may impose
such other rates, charges and fees for commercial, institutional, or industrial use as may be set by the
Village Board in accordance with law.

8. VILLAGE LAW COMPLIANCE

The Village hereby reserves all rights under Article 11 of the New York State Village Law.

9. TITLE TO IMPROVEMENTS

The Outside User will convey to the Village or its designee, free and clear of all liens and
encumbrances, good marketable title to any or all of the Development Water Supply System and any
related improvements and/or appurtenances constructed by the Outside User as may be required by
the Villages Water Superintendent, together with such easements as required by the Village in order
to allow the Village to maintain and service the same. Title to improvements not required by the
Village shall remain with the Outside User.

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10. WATER SERVICE AND RULES & REGULATIONS; COMPLIANCE

(a) Upon completion of the Development Water Supply System, the Village agrees to provide
water service to the Development in accordance with its Water Rules and Regulations as amended
from time to time.

(b) The Outside User and all owners and residents in the Development agree to comply with
all the provisions of the Water Rules and Regulations as amended from time to time including but not
limited to water emergency and conservation measures, the prohibition against additional service line
connections and the annual testing and certification of the back flow prevention system in accordance
with the Village of Kiryas Joel Code.

(c) Unless the Development Site is annexed to the Village, the Outside User and all owners
and residents of the Development shall pay customary water rates for outside users which shall be set
by the Village Board from time to time.

11. REPAIRS

The Village shall have the right, but not the obligation, to repair any leaks, or deficiencies in
the water improvements at the expense of the outside users. Such expenses shall be billed, levied,
and collected from the Property Owner, its heirs, successors and assigns, together with any
enforcement or administrative expenses incurred by the Village, in the same manner and on the same
basis as other water charges.

12. INTEGRITY OF THE VILLAGE WATER SUPPLY SYSTEM

In order to protect the integrity of the Villages water system and the acquifer underlying the
Village and surrounding area, the Outside User and all property owners in the Development are
prohibited from drilling wells within the Development and from bringing or using water from other
sources. Nothing herein shall prevent the Village and the Outside User from dedicating wells and/or
sources of water supply to the Village to supplement the Village water supply.


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13. COVENANT RUNNING WITH THE LAND; SURVIVAL; MEMORANDUM OF AGREEMENT

(a) This Agreement shall be a restrictive covenant running with the land and shall be binding
on all the Outside User and the Outside Users successors and/or assigns and/or any property owner
in the Development connected to the Village Water Supply System pursuant to this Agreement.

(b) This Agreement shall survive the annexation of the Development Site into the Village, as
well as any rezoning of the Development by the Village or the Town.

(c) The Village shall not be obligated to provide water under this Agreement unless the
Agreement or a Memorandum of Agreement referencing this Agreement has been recorded in the
County Clerks office and the Outside User and all property owners in the Development are bound by
the Agreement.

14. COMPLIANCE WITH LAW; SEVERABILITY; FURTHER ACTIONS

(a) This Agreement and all rights and obligations hereunder shall be subject to compliance
with all applicable laws, rules and regulations.

(b) If any part of this Agreement is invalidated by a court of competent jurisdiction, the
remainder of the Agreement shall remain intact and shall be interpreted to most fully implement the
purposes and intent of the original agreement.

(c) The parties hereto agree to cooperate and to take all such actions which are necessary and
proper for the carrying out of this agreement.

15. DEDICATION

The Outside User hereby irrevocably agrees upon written notice from the Village to
immediately offer for dedication to the Village and, if such dedication is accepted, transfer to the
Village title to such strips of land or easements relating to such lands as the Village determines are
needed for street widening, installation of utilities, walkways, sidewalks, and other infrastructure.

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16. SPECIAL CONDITIONS

The following special conditions are applicable:

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Dated: ___________________________


BY: ___________________________________

___________________________________


VILLAGE OF KIRYAS JOEL

By: ___________________________________
Abraham Wieder, Mayor


STATE OF NEW YORK )
).SS:
COUNTY OF ORANGE )
On this ____ day of ______, 20__, before me, the undersigned, a Notary Public in and for said State,
personally appeared _______________, personally known to me or provided to me on the basis of satisfactory evidence
to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.
________________________________________
Notary Public of the State of New York


STATE OF NEW YORK )
).SS:
COUNTY OF ORANGE )
On this ____ day of _______, 20__, before me, the undersigned, a Notary Public in and for said State,
personally appeared _______________, personally known to me or provided to me on the basis of satisfactory evidence
to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.
________________________________________
Notary Public of the State of New York