The CC&Rs, in full.

1.1Act

Act shall mean the Nevada Uniform Common Interest Community Act as set forth in Chapter 116 or NRS.

1.2Administrator

Administrator shall mean the administrator of the Real Estate Division of the Nevada Department of Business and Industry.

1.3Annexable Area

Annexable Area shall mean all or any portion of that real property described in Exhibit "B" attached hereto, all or any portion of which real property may from time to time be made subject to this Declaration pursuant to the provisions of Article XII hereof. At no time shall any portion of the Annexable Area be deemed to be a part of the Community until such portion of the Annexable Area has been duly annexed hereto pursuant to Article XII hereof.

1.4Arbitration

Arbitration means the requirement under NRS Chapter 38.300-360 that certain claims regarding the Declaration and the Association be submitted to Arbitration or mediation.

1.5Architectural Committee

Architectural Committee shall mean and refer to the Committee established in accordance with Article VII of the Declaration to exercise architectural control in the Project.

1.6Articles

Articles shall mean and refer to the Articles of Incorporation of the Association and any amendments to said Articles.

1.7Association

Association shall mean and refer to INDIGO HOMEOWNERS' ASSOCIATION, a Nevada non-profit corporation, its successors and assigns.

1.8Association Funds

Association Funds shall mean the accounts created for receipts and disbursements of the Association.

1.9Association Property

The First Amendment (2006) adds Section 1.9A, "Balcony Deck," right after this section.

Association Property shall mean all of the Property, real and personal, owned by the Association, including all the Common Elements (i.e., Private Streets and Utility Easements, Entry Gate, Utility Easements, Private Drainage Areas, Landscape Easements, Public Access Easements, Sidewalk Easements, 15.00' and 20.00' Pedestrian Access Easements, Underground Public Drainage Easements, and Open Space.

1.10Board or Board of Directors

Board or Board of Directors shall mean and refer to the governing body of the Association.

1.11Boundaries

Boundaries, when interpreting conveyances or plans, shall mean the then existing physical boundaries of a Lot or the Dwelling thereon whether in its original state or reconstructed in substantial accordance with the original plans. The Boundaries, as above defined, shall be conclusively presumed to be its boundaries rather than the boundaries expressed in the deed or plan, regardless of settling or lateral movement of buildings, fences, or other Improvements, and regardless of minor variances between boundaries shown on the plat or deed, and those of the Improvements.

1.12Boundary Wall

Boundary Wall sometimes Party Wall shall mean and refer to the free standing or party wall constructed on the property line between contiguous Lots.

1.13Budget

Budget shall mean a written, itemized estimate of the expenses to be incurred by the Association in performing its functions under this Declaration, prepared and approved pursuant to the provisions of this Declaration.

1.14Bylaws

Bylaws shall mean and refer to the Bylaws of the Association and any amendments to said Bylaws.

1.15Close of Escrow

Close of Escrow shall mean the date on which a deed is Recorded conveying a Lot from Declarant to an Owner.

1.16Common Elements

Common Elements, sometimes Common Area, shall mean all real property or interest therein owned or leased by the Association (including the Private Streets and Utility Easements, Entry Gate, Utility Easements, Private Drainage Areas, Landscape Easements, Public Access Easements, Sidewalk Easements, 15.00' and 20.00' Pedestrian Access Easements, Underground Public Drainage Easements, and Open Space, as shown on Sheets 3 and 7 of the Plat), but shall exclude Lots owned by any Owner other than the Association. "Common Area" shall include all of that real property designated as "Common Element Lot" or "Common Lot", on the Plat, and Improvements thereon, if any, and shall constitute Common Elements as to the Property, as provided in NRS §116.110318. The term Common Area shall also include such personal property owned by the Association as is necessary and appropriate to enable the Association to perform its duties or acts required or permitted hereunder.

1.17Common Expenses

Common Expenses shall mean expenditures made by, or financial liabilities of, the Association, together with any allocations to reserves. Common Expenses shall include, but not necessarily be limited to, the actual and estimated costs of: maintenance, management, operation, repair and replacement of the Common Area (and any other portions of the Association Property and/or Property as expressly required hereunder); costs of any commonly metered utilities and other charges for the Common Area; compensation paid by the Association to Managers, accountants, attorneys and employees; costs of all utilities, gardening, and other services benefitting the Common Area and the front yards of each Lot; costs of fire, casualty and liability insurance, workers' compensation insurance, and any other insurance covering the Common Area or Property; costs of bonding the Board, Directors, Officers, Managers, or any other persons handling the funds of the Association; taxes paid by the Association; amounts paid by the Association for discharge of any lien or encumbrance levied against the Common Area or Property, or portions thereof; any other costs of management and administration of the Association or incurred in enforcing and administering the Declaration; and any other expenses for which the Association is responsible pursuant to the Act; and costs of any other item or items incurred by the Association for any reason whatsoever in connection with the Community, the Property, or for the benefit of the Owners.

1.18Community

Community shall mean a Common Interest Community, as defined in NRS §116.110323, and a Planned Community, as defined in NRS §116.110368.

1.19Declarant

Declarant shall mean Ryland Homes Nevada, LLC, a Delaware limited liability company, its successors and assigns, and any Person to which it shall have assigned any rights hereunder by an express written and Recorded assignment (but specifically excluding Purchasers).

1.20Declarant's Rights

Declarant's Rights shall mean the rights granted to the Declarant by law and pursuant to this Declaration, including without limitation, the Declarant's right to:

(a) complete the Improvements as indicated on the Plat, plans or this Declaration;

(b) exercise any developmental rights including adding Phases to the Property, and creating Lots and Common Elements within the Phases;

(c) maintain on the Property sales offices, models, management offices, and advertising, including signs;

(d) use of easements through the Common Elements for the purpose of making improvements in the Community;

(e) appoint or remove officers of the Association and any members of the Board during the Declarant's Control Period as described in Section 3.2; and

(f) assert statutory rights and those rights described in Section 3.3 and as otherwise reserved in the Declaration.

1.21Declaration

Declaration, sometimes Supplemental Declaration, shall mean this enabling Supplemental Declaration of Covenants, Conditions, and Restrictions.

1.22Dwelling

Dwelling shall mean a building located on a Lot designed and intended for use and occupancy as a residence by a single Family.

1.23Eligible Insurer or Guarantor

Eligible Insurer or Guarantor shall mean an insurer or governmental guarantor who has requested notice from the Association of those matters of which such insurer or guarantor is entitled to notice by reason of this Declaration or the Bylaws.

1.24Eligible Security Holder

Eligible Security Holder shall mean a holder of the First Security Interest on a Lot who has requested notice from the Association of matters of which the holder is entitled to notice of by reason of this Declaration or the Bylaws.

1.25Emergency

Emergency shall mean any occurrence or combination of occurrences that: (a) could not have been reasonably foreseen; (b) affects the health, welfare and safety of the Owners; (c) requires the immediate attention of, and possible action by, the Board; and (d) makes it impracticable to comply with the notice, agenda, or Owner comment requirements applicable to meetings of either the Members or the Board, as the case may be.

1.26Family

Family shall mean (a) group of natural persons related to each other by blood or legally related to each other by marriage or adoption, or (b) a group of natural persons not all so related, but who maintain a common household in a Dwelling.

1.27FHA

FHA shall mean the Federal Housing Administration.

1.28Governing Documents

Governing Documents is a collective term that means and refers to this Declaration, the Articles, the Bylaws, and the Association's Rules and Regulations.

1.29Identifying Number

Identifying Number, pursuant to NRS §116.110348, shall mean the number that identifies a Lot on the Plat.

1.30Improvement (or Improvements)

Replaced in its entirety by the First Amendment (2006). Read the current wording.

Improvement (or Improvements) means any structure or appurtenance thereto of every type and kind placed in the Property, including without limitation, the construction, installation, alteration or remodeling (further including exterior painting) of the same, subject to the use restrictions set forth herein, including, but not limited to, Dwellings and other buildings, walkways, sprinkler pipes, garages, swimming pools, spas, and other recreational facilities, streets, roads, driveways, parking areas, fences, screening walls, block walls, stairs, decks, landscaping, antennae, sky-lights, utility lines, hedges, windbreaks, plantings, planted trees and shrubs, poles, signs, exterior air conditioning and water-softener fixtures or equipment.

1.31Lot

Lot, as the term is used herein, shall mean the same as "Unit" as defined in NRS §116.11039 and therefore shall mean that portion of the Community to be separately owned by each Owner, and shall include the land within the Lot and all Improvements thereon. Subject to Section 2.3(b) below, the Boundaries of each Lot shall be the property lines of the Lot, as shown on the Plat. The term "Unit Estate" shall mean all of the components of ownership held by an Owner of a Lot, including any fee title interest, any undivided interest in the Common Elements, and right to use the Common Elements, and any easement rights.

1.32Lots That May Be Created

Lots That May Be Created shall mean the total number of Lots that may (but need not necessarily) be created by Declarant within the Original Property and all of the Annexable Area (i.e., 151 Lots).

1.33Manager

Manager shall mean the person or entity designated by the Board to manage the affairs of the Community and to perform various other duties assigned to it by the Board by the provisions of this Declaration and the Bylaws.

1.34Member

Member shall mean any person holding a membership in the Association, as provided in this Declaration, and shall also refer to an Owner as defined in Section 1.40.

1.35Membership

Membership shall mean the property, voting and other rights and privileges of Members as provided herein, together with the correlative duties and obligations, including liability for Assessments, contained in the Governing Documents.

1.36Mortgage

Mortgage sometimes Security Interest shall mean and refer to a deed of trust as well as a mortgage.

1.37Mortgagee

Mortgagee shall mean and refer to the holder of a Security Interest, whether a beneficiary or holder under a deed of trust or mortgage given for value, which encumbers any Lot.

1.38Officer

Officer shall mean a duly elected or appointed and current officer of the Association.

1.39Original Property

Original Property shall mean that real property described in Exhibit "A" attached hereto.

1.40Owner

Owner sometimes Lot Owner shall mean and refer to a record owner, whether one or more persons or entities, of fee simple title to any Lot which is part of the Property including installment contract buyers, but excluding those having such interest merely as security for the performance of an obligation.

1.41Parking

Parking shall mean and refer to off Lot parking, if any, on the Private Streets within the Association, the use of which shall be as regulated by the Association.

1.42Perimeter Wall

Perimeter Wall shall mean the masonry wall along the perimeter of the Project. The maintenance and repair of the exteriors of the Perimeter Walls will be performed by the Association. The entire of the Perimeter Wall will be maintained proportionately by each Owner whose Lot backs up to the interior of the Perimeter Wall. The exterior of Boundary Walls in the interior of the Project which front on Common Elements shall be maintained by the Association, the interiors of such walls (and any other interior wall) shall be maintained proportionately he each Owner whose Lot is adjacent to such interior wall.

1.43Person

Person shall mean a natural individual, a corporation, or any other entity with the legal right to hold title to real property.

1.44Plat

Plat shall mean and refer to The Final Map of Fort Apache/Meranto, a Common Interest Community, filed on December 22, 2005, in Book 128 of Plats, Page 90, Official Records, Clark County, Nevada, Recorder and any amendments thereto, and when annexed any Plats for the Annexable Area.

1.45Private Streets

Private Streets shall mean and refer to the Private Street and Utility Easement as shown on Sheets 3 through 7 of the Plat.

1.46Project

Project shall mean the entire Community as shown by the Plat, including the Annexable Areas when annexed.

1.47Property

Property shall mean the Original Property and any and all portions of the Annexable Area hereinafter annexed to the real property subject to this Declaration in accordance herewith.

1.48Purchaser

Purchaser shall have that meaning as provided in NRS §116.110375.

1.49Record, Recorded, Filed or Recordation

Record, Recorded, Filed or Recordation shall mean, with respect to any document, the recordation of such document in the Official Records of the Clark County, Nevada, Recorder.

1.50Residence

The First Amendment (2006) adds Section 1.50A, "Roof Deck," right after this section.

Residence shall mean and refer to any Dwelling constructed on a Lot in accordance with the law and this Declaration. Resident shall mean any Person who is physically residing in a Dwelling on a Lot.

1.51Rules and Regulations

Rules and Regulations shall mean all rules and regulations duly adopted by the Board, as such Rules and Regulations may be amended from time to time.

1.52Security Interest

Security Interest shall mean and refer to the holder of a Security Interest on a Lot which by definition includes mortgages, deeds of trust, and installment contracts of sale.

1.53VA

VA shall mean the United States Department of Veterans Affairs.

2.1Title To Association Property

Declarant hereby covenants for itself, its successors and assigns that it will, at the time of conveyance of the first Lot to an Owner in the Original Property, convey title to the Association Property (Common Elements) within the Original Property to the Association free and clear of all encumbrances and liens, except utility easements, covenants, conditions, and reservations then of record, including those set forth in this Declaration. Similar conveyances shall be made to the Association at the time of the conveyance to an Owner of the first Lot in each subsequent Phase of the Annexable Area.

2.2Association Property

The Association shall have the following rights regarding the Association Property:

(a) To manage, repair and replace as necessary, any part of the Association Property.

(b) The right of the Association to dedicate or transfer all or substantially all or any part of the Association Property to any public agency, authority, or utility for such purposes, subject to compliance with NRS §116.3112.

(c) A non-exclusive easement over and upon the Lots for the purpose of work on the Association Property. Any damage to any Lot caused by the gross negligence or willful misconduct of the Association or any of its agents during any entry onto any Lot shall be repaired by and at the expense of the Association.

(d) The right of the Association, in accordance with NRS §116.3112, the Articles, and the Bylaws, to borrow money for the purpose of repairing and replacing the Association Property, and with the consent of the majority of the Association Members including a majority of votes of Members other than the Declarant, to hypothecate any or all real or personal property owned by the Association.

2.3Easements

(a) Owner Easements. Every Owner of a Lot shall have a right and easement of ingress, egress, use and enjoyment in and to the Association Property which shall be appurtenant to and shall pass with the title to every such Lot, subject to the following provisions:

(i) The right of the Association to establish uniform Rules and Regulations pertaining to the use of the Association Property.

(ii) The right of the Association to suspend the voting rights of an Owner for any period during which any Lot assessment or installment remains unpaid for thirty (30) days past its Due Date (hereinafter called a "Delinquent Assessment"); also for a period not to exceed thirty (30) days for any infraction of its published Rules and Regulations after reasonable written notice and an opportunity for a hearing before the Board as set forth in the Bylaws.

(b) Encroachment Easement. In the event: (i) any improvement on a Lot encroaches upon an adjoining Lot or Association Property, or (ii) the Association Property encroaches upon a Lot as a result of the initial construction, or as the result of repair, shifting, settlement, or movement of any portion thereof, an easement for the encroachment and for the maintenance of same, shall exist so long as the encroachment exists. Further, each Lot Owner and the Association are hereby granted an easement over all adjoining Lots and Association Property for the purpose of accommodating any minor encroachment not exceeding one foot, due to engineering errors, errors in original construction, settlement or shifting of the walls and fences, and architectural or other appendants.

(c) Utility Easement. Each Lot is subject to all easements appearing on the Plat, other easements of record, and easements for the use and benefit of sewer/water and other utilities created by this Declaration and which serve Lots and the Association Property. Easements may include, but are not limited to, those for cable television, sewers, water, gas, electrical, irrigation systems, landscaping, and drainage. No Owner shall interfere in any way with the initiation, installation or access to or for maintenance, replacement, or repair of said utilities, irrigation systems, landscaping, or in any manner obstruct or change the direction or flow of drainage channels in such easements.

(d) Association Landscape Easement. The Association shall have a right and easement of ingress and egress over and on each Lot for purposes of installing and maintaining front yard landscaping, and maintaining the Perimeter Wall and any retaining wall and any retaining wall or other landscaping structure or feature on the Lot other than the Residence, front porch or courtyard, if any, and driveway. No Owner shall interfere with the Association's right to maintain the landscaping and Perimeter Wall as set forth herein and elsewhere in this Declaration.

2.4Other Easements

Easements are reserved throughout the Property, including, but not limited to utility easements for utility services and right-of-way easements over the Private Streets for ingress and egress, drainage, landscape, and sight easements as described on the Plat.

2.5Special Declarant's Easements

Subject to a concomitant obligation to restore, Declarant and its agents shall have:

(a) a non-exclusive easement over the Association Property for the purpose of making repairs to the Association Property and to Lots if access thereto is not reasonably available; and

(b) the right to the non-exclusive use of the Association Property during the Declarant's Control Period for the purpose of developing of the Project. The use of the Association Property by Declarant and its agents shall not unreasonably interfere with the use thereof by any Owner.

2.6Water Drainage Easement

Lots situated on higher elevations shall have surface water drainage easements over adjacent Lots with lower elevations for the drainage of rainfall or other surface waters. Except with the prior approval of the Owner of the lower Lot, and the Architectural Committee, the grade along or close to any side line of the Lot situated on the higher elevation shall not be altered nor shall any structure or improvement be placed along or close to any Lot line of the higher elevation Lot so as to unduly concentrate the flow of surface waters or locate such flow in a manner that will be hazardous to life or cause material damage to the property of the Owner of the Lot situated on the lower elevation. Except with the prior approval of the Owner of the higher Lot and the Association, no structure or improvement shall be erected, made, or maintained on the Lot situated on the lower elevation that will alter or change the drainage pattern of such lower Lot in a manner hazardous or detrimental to the Lot situated on higher elevation.

2.7Delegation of Use

Any Owner entitled to the right of use Association Property may delegate that right to his/her tenant's or contract purchasers who reside in the Owner's Lot, subject to the Rules and Regulations prescribed by the Board. An Owner who has so delegated his/her right shall not be entitled to use and enjoyment of the Association Property for so long as such delegation remains in effect.

3.1Membership

Every Owner of a Lot including the Declarant shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot. Each Owner is obligated to comply with the Governing Documents of the Association. Membership in the Association shall not be transferred, pledged, or alienated in any way, except upon the sale of the Lot to which it is appurtenant, and then only to the Purchaser of the Lot. Any attempt to make a prohibited transfer is void. If the Owner of a Lot fails or refuses to transfer the Membership registered in his/her name to the Purchaser of his/her Lot, the Association shall have the right to record the transfer upon its books and thereupon the old Membership outstanding in the name of the seller shall be null and void.

3.2Voting

There shall be one Membership for each Lot owned within the Project. The Membership and vote shall be automatically transferred upon the conveyance of that Lot. If a Lot is owned by more than one (1) Person, those Persons shall agree among themselves how a vote for that Lot's Membership is to be cast. Individual co-owners may not cast fractional votes. A vote by a co-owner for the entire Lot's Membership interest shall be deemed to be valid unless another co-owner of the same Lot objects at the time the vote is cast, in which case such Membership's vote shall not be counted.

The Members shall be of one (1) class consisting of Lot Owners as defined in this Declaration. Lot Owners shall elect all members of the Board, following Declarant's Control Period.

3.3Declarant's Control Period

During the development phase of the Project the Declarant shall have additional rights and qualifications as provided in the Act and under the Governing Documents. This period is called the Declarant's Control Period. During the Declarant's Control Period, the Declarant, or persons designated by the Declarant, subject to certain limitations contained in this Declaration, may appoint and remove the Officers and members of the Board. The Declarant's Control Period terminates no later than the earlier of (a) sixty (60) days after conveyance to Lot Owners other than a Declarant of seventy-five percent (75%) of the Lots that may be created; (b) five (5) years after all Declarants have ceased to offer Lots in the Community for sale in the ordinary course of business; or (c) five (5) years after any right to add new Lots was last exercised.

Not later than sixty (60) days after conveyance to Lot Owners (other than a Declarant) of twenty-five percent (25%) of the Lots that may be created, at least one (1) member, and not less than twenty-five percent (25%) of the members of the Board shall be elected by Lot Owners other than the Declarant. Not later than sixty (60) days after conveyance to Lot Owners (other than a Declarant) of fifty percent (50%) of the Lots that may be created, not less than thirty-three and one-third percent (33 1/3%) of the members of the Board must be elected by Lot Owners other than the Declarant.

The Declarant may voluntarily surrender the right to appoint and remove officers and Directors of the Board before termination of the Declarant's Control Period, but in that event, the Declarant may require, for the duration of the Declarant's Control Period, that specified actions of the Association or Board, as described in a Recorded instrument executed by the Declarant, be approved by the Declarant before they become effective.

Except as otherwise provided above, not later than the termination of the Declarant's Control Period, the Lot Owners shall elect a Board of not less than three (3) members, at least a majority of whom shall be Owners. The Board shall elect the Officers. The Board members and officers shall take office upon election.

3.4Declarant's General Rights and Reservations

Nothing in this Declaration shall limit, and no Owner or the Association shall do anything to interfere with, the right of Declarant to subdivide or re-subdivide any portion of the Property, or to complete Improvements to and on the Property owned solely or partially by Declarant, or to alter the foregoing or its construction plans and designs, or to construct such additional Improvements as Declarant deems advisable in the course of developing of the Property. The rights of Declarant hereunder shall include, but shall not be limited to, the right to install and maintain such structures, displays, signs, billboards, flags, and sales offices as may be reasonably necessary to conduct its business of completing the work and disposing of the Lots by sale, resale, lease, or otherwise. Each Owner by accepting a deed to a Lot hereby acknowledges that the activities of the Declarant may temporarily or permanently impair the view of such Owner and may constitute an inconvenience or nuisance to the Owners, and hereby consents to such impairment inconvenience or nuisance. This Declaration shall not limit the right of Declarant at any time prior to acquisition of title to a Lot in the Project by a purchaser from Declarant to establish on that Lot additional licenses, easements, reservations and rights-of-way to itself, to utility companies, as may from time to time be reasonably necessary for the proper development and disposal of the Property. The Declarant may use any Lots owned by Declarant in the Project as model home complexes, real estate sales offices, or leasing offices. Declarant need not seek or obtain Architectural Committee approval of any Improvement constructed or placed on any portion of the Property by Declarant. Any rights of the Declarant in this Declaration or in any portion of the Property may be assigned by the Declarant to any successor in interest by a written assignment in Recordable form. Notwithstanding any other provision of this Declaration, the prior written approval of Declarant, as developer of the Property, will be required before any amendment to this Article shall be effective. Each Owner hereby grants, upon acceptance of his/her deed to the Lot, an irrevocable, special power of attorney to Declarant to execute and record all documents and maps necessary to allow Declarant to exercise its rights under this Article. Declarant and its prospective purchasers of Lots shall be entitled to the nonexclusive use of the Association Property and any recreational facilities thereon, without further cost for access, ingress, egress, use, or enjoyment in order to show the Property to its prospective purchasers and dispose of the Property as provided herein. Declarant, its successors, and tenants shall also be entitled to the nonexclusive use of any portions of the Property which comprise Private Streets and walkways for the purpose of ingress, egress, and accommodating vehicular and pedestrian traffic to and from the Property. The use of the Association Property by Declarant shall not unreasonably interfere with the use thereof by other Owners. The Association shall provide Declarant with all notices and other documents to which an Owner is entitled pursuant to this Declaration. The rights and reservations of Declarant set forth in this Article shall terminate upon the expiration of the Declarant's Control Period.

Declarant shall preserve the right, without obligation, to enforce the Governing Documents (including, without limitation, the Association's duties of maintenance and repair). After the end of the Declarant's Control Period, throughout the term of the Declaration, the Board shall deliver to Declarant notices and minutes of all Board meetings and Membership meetings, and Declarant shall have the right, without obligation, to attend such meetings, on a non-voting basis. Declarant shall also receive notice of, and have the right, without obligation, to attend, all inspections of the Property or any portion(s) thereof. The Board shall also, throughout the term of the Declaration, deliver to Declarant (without any express or implied obligation or duty on Declarant's part to review or to do anything) all notices and correspondence to Owners, reasonable notice of all inspections, all inspection reports, and the Reserve Studies prepared for the Association.

3.5Continuing Notices to Declarant

After the end of the Declarant's Control Period, and thereafter throughout the term of this Declaration, the Board shall deliver to Declarant notices and minutes of all Board meetings and Owners' meetings, and Declarant shall have the right, but not the obligation to attend such meetings, on a non-voting basis. Declarant shall also receive notice of, and have the right, but not the obligation, to attend the inspections of the properties described in Section 3.6 below. The Board shall also, throughout the term of this Declaration, deliver to Declarant (without any express or implied obligation or duty on Declarant's part to review or to do anything) all notices and correspondence to Owners, all inspection reports, the Reserve Studies, and proof of performance of the annual audit. Such notices and information shall be delivered to Declarant at its last known address. Declarant shall notify the Board in writing of any change in address.

3.6Inspections

After the end of the Declarant's Control Period, the Board and/or Manager shall conduct inspections of entry gate(s), street lights and any landscaped portions (including drainage and related systems) of the Common Elements at least monthly and all Private Streets and walkways in the Common Elements at least quarterly. Subsequent to each inspection the Board shall cause any and all necessary or prudent maintenance and/or repairs to be promptly undertaken and completed in a manner and to the extent necessary to prevent avoidable deterioration or property damage.

Every other year at least one inspection of Private Streets in the Common Elements shall be done by a licensed and qualified contractor with expertise in the construction and/or maintenance of such installations, who shall also be required to promptly provide a written report to the Board. Subsequent to said inspection the Board shall cause any and all necessary or prudent repairs to be promptly undertaken and completed in a manner and to the extent necessary to prevent avoidable deterioration or promptly damage.

4.1Creation of Lien and Personal Obligation of Assessment

The Declarant, for each Lot owned within the Original Property and each additional Lot when annexed, hereby covenants and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and further agrees to pay to the Association without deduction or setoff:

(a) annual assessments, which shall include an adequate reserve fund for insurance, periodic maintenance, repair, and replacement of the Association Property;

(b) special capital assessments for capital improvements; and

(c) special Lot assessments, all of which shall be established and collected as hereinafter provided.

The full annual and special assessments, together with interest, costs, and when applicable, reasonable attorney's fees, shall be a charge on the Lot and shall be a continuing lien upon the Lot against which such assessments are made. Each assessment, together with interest, costs and reasonable attorney's fees, shall also be the personal obligation of the Person who was the Owner of such Lot at the time the assessment became due. The personal obligation for delinquent assessments shall not pass to an Owner's successors in title, unless expressly assumed in writing by such successor.

(d) The Board of Directors shall prepare on an annual basis a budget for the daily operation of the Association, including reserve studies, and cause the budget to be approved by the Board and presented to the Members for approval, all as provided in the Bylaws.

4.2Purpose of Assessments

The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety, welfare, and common good of all the Residents in the Community and for the improvement and maintenance of any Association Property.

4.3Annual Assessment

Until January 1st of the year immediately following the conveyance of the first Lot in the Original Property to an Owner, the initial annual assessments paid to the Association shall be as set forth in the Association's Budget, as approved by the Board.

(a) From and after January 1st of the year immediately following the conveyance of the first Lot in the Original Property to an Owner, the maximum annual assessment of the Association may, without a vote of the Membership, be increased by the Board each year thereafter not more than twenty-five percent (25%) above the maximum assessment for the previous year.

(b) From and after January of the year immediately following the conveyance of the first Lot in the Original Property to an Owner, the maximum annual assessment may be increased above twenty-five percent (25%) only by the vote or written assent of fifty-one percent (51%) of the total Voting Power (as defined in the Bylaws) of the Association.

(c) The Board of Directors may fix the annual assessment at any amount not in excess of the twenty-five percent (25%) maximum.

4.4Special Assessments

In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year-the Board may permit payment in installments beyond the assessment year--only for the purpose of defraying, in whole or part, any construction, reconstruction, repair, or replacement of a capital improvement upon the Association Property, including fixtures and personal property related thereto, provided that any such assessment shall have the vote or written assent of:

(a) a majority of the total Voting Power of the Association; and

(b) a majority of the total Voting Power of the Members other than the Declarant.

4.5Single Lot Assessment

The Association may also levy a special assessment against any Member and Member's Lot to reimburse the Association for costs incurred in bringing a Member and Member's Lot into compliance with the provisions of the Governing Documents. The single lot assessment may be levied upon the vote of the Board after notice and the opportunity to be heard.

4.6Membership Approval

Any action authorized under Section 4.3 or 4.4 above which requires Owner approval shall be taken at a meeting called for that purpose, written notice of which must state the time, place, and the items to be considered at the meeting shall be given to all Members by first class mail, or personal service, not less than fifteen (15) days nor more than sixty (60) days before the meeting. A quorum for such meeting shall be a majority of the Voting Power of the Membership of the Association. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be twenty percent (20%) of the Voting Power of the Membership of the Association; provided, however, if

(a) the meeting so adjourned is an annual meeting, and

(b) the adjourned annual meeting is actually attended, in person or by proxy, by less than thirty-three and one-third percent (33 1/3%) of the Voting Power of the Membership of the Association, then the only matters which may be voted upon thereat, are matters the general nature of which notice was duly given. If the proposed action is favored by a majority of the votes cast at such meeting, but such vote is less than the requisite fifty-one percent (51%), Members who were not present in person or by proxy may give their assent in writing provided the same is obtained by the Board or its Manager not later than thirty (30) days from the date of such meeting.

4.7Assessment Criteria

Both annual and special assessments must be fixed at a uniform rate for all Lots. The assessments shall be collected on the 1st day of each month, or on such other schedule as approved by the Board. Surplus funds remaining after payment of provisions for Common Expenses shall be retained by the Association as a capital and replacement reserve.

Any assessment not paid within thirty (30) days after the due date shall be delinquent and shall bear interest at the rate of eighteen percent (18%) per annum from the due date until paid. A late charge of ten percent (10%) of the delinquent assessment shall be due for any payment made later than thirty (30) days after its due date. If an Owner shall be in default in the payment of an assessment installment, the Board may accelerate the remaining installments of the assessment upon notice thereof to the Owner, and thereupon, the unpaid balance of the assessment shall become due on the date stated in the notice.

4.8Date of Commencement of Annual Assessments; Due Dates

The annual assessments provided for herein shall commence as to all Lots in a phase on the first day of the month following the conveyance of the first Lot in each phase to an Owner. During the Declarant's Control Period, the Declarant shall pay the regular monthly assessments on annexed, but not closed Lots owned by it in each phase as such phase is annexed in to the Community.

The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. In addition to the initial capital contribution consisting of the first two (2) months of annual assessments paid by each Owner upon the purchase of their Lot from Declarant, the Association shall also assess a transfer fee in an amount established and published by the Board for any subsequent transfer of title to the Owners of an Owner's Lot in the Project.

4.9Effect of Non-payment of Assessments/Remedies of the Association

Any assessment made in accordance with this Declaration shall be a debt of the Owner of a Lot from the time the assessment is due.

(a) At any time after any assessment levied by the Association against any Lot has become delinquent, the Board may record in the Office of the Clark County Recorder a "Notice of Delinquent Assessment and Claim of Lien" as to such Lot. The notice may be signed by an officer or director of the Association, its Manager, agent or attorney. A copy of said notice may be recorded and shall be served personally upon the Owner, or be sent by first class mail, postage prepaid, certified or registered, return receipt request, to the then current address of the Owner in the Association's files.

(b) Immediately upon the mailing of any notice of delinquency pursuant to this Section, the amounts delinquent and all subsequent installments, whether delinquent or not, together with costs (including attorneys' fees) and interest accruing thereon, may be and become immediately due. The notice shall also secure all other payments and/or assessments, together with interest, costs, fines, where applicable, and attorneys' fees with respect to said Lot following such recording.

(c) In the event the delinquent assessments and all other assessments which have become due and payable with respect to the Lot, together with all costs (including attorney's fees) and accrued interest on such amounts, are fully paid or otherwise satisfied prior to the completion of the foreclosure sale, the Board shall record a signed satisfaction and release of said lien.

(d) Each assessment lien may be foreclosed as and in the same manner as the foreclosure of a mortgage upon real property under the laws of the State of Nevada, or may be enforced by sale pursuant to NRS §§ 116.31162 and 116.31164, as from time to time amended, or any successor statute and to that end, a power of sale is hereby conferred upon the Association. The Association, acting on behalf of the Lot Owners, shall have the power to bid for the Lot at a foreclosure sale, and to acquire and hold, lease, mortgage, or convey the same. Suits to recover a money judgment for unpaid assessments, rent, and attorneys' fees are permitted without foreclosing or waiving the lien securing the same.

4.10Notice to Lien Holders

A copy of the notice of default and election to sell, as well as the notice of sale, shall be mailed certified mail or registered mail, return receipt requested, to persons who have recorded requests for notice per NRS § 107.090 and holders of recorded liens. Notice shall be mailed to the name and address appearing on the request for notice and on recorded liens.

4.11Lien/Security Interest

The Association liens under this Section are prior to all other liens and encumbrances on a Lot except:

(a) Liens and encumbrances recorded before the recording of the Declaration;

(b) Liens for real estate taxes and other governmental assessments or charges against the Lot;

(c) Other than as provided in Section 4.12, a First Security Interest on the Lot recorded before the date on which the assessment sought to be enforced became delinquent;

(d) Mechanics and materialmen's liens; and

(e) Association liens with earlier priority.

4.12Super Priority

The lien is also prior to all Security Interests described in Sub-section 4.11(c) to the extent of the assessments for Common Expenses and Association Property based on the periodic budget adopted by the Association pursuant to NRS § 116.3115 would have become due in the absence of acceleration during the six (6) months immediately preceding institution of an action to enforce the lien.

Recording of the Declaration constitutes record notice and perfection of the lien. No further recording of any claim of lien for assessment under this Section is required, except a notice of delinquent assessment must be served upon the Owner before commencement of foreclosure.

4.13Subordination of the Lien to First Security Interest

Except as provided in Section 4.12, the lien of the assessments provided for herein shall be subordinate to the lien upon any Lot of a First Security Interest recorded prior to the date the assessment sought to be enforced becomes delinquent. The sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to judicial or non-judicial foreclosure of a First Security Interest or any conveyance in lieu thereof shall, except pursuant to Section 4.11, extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from lien rights for any assessments thereafter becoming due.

Where the holder of a recorded First Security Interest or other purchaser of a Lot obtains title to the same as a result of foreclosure or conveyance in lieu, such acquirer of title, his successors and assigns, shall not, except pursuant to Section 4.11, be liable for the share of the Common Expenses or Assessments by the Association chargeable to such Lot which became due prior to the acquisition of title to such Lot by such acquirer.

4.14Estoppel Certificate

The Association shall within ten (10) days after written request by a Lot Owner or holder of a Security Interest on a Lot, provide a certificate in recordable form signed by an officer of the Association setting forth the amount of the unpaid assessment on the Lot and whether or not it is delinquent. A properly executed certificate of the Association as to the status of any assessment on a Lot is binding upon the Association, the Board and every Lot Owner as of the date of its issuance.

4.15Personal Liability of Owner

No Owner is exempt from personal liability for assessments levied by the Association, is the Owner's Lot released from the liens and charges hereof by waiver of the use or enjoyment of any of the Association Property or by abandonment of the Lot.

4.16Working Capital Fund

Upon acquisition of record title to a Lot from Declarant, each Owner in each Phase shall contribute to the working capital fund of the Association an amount equal to two (2) months of the then annual assessment for that Lot as determined by the Board. The working capital shall not be considered prepayment of the annual assessment. This amount shall be deposited by the Purchaser into the purchase and sale escrow and disbursed therefrom to the Association.

5.1Duties and Powers of the Association

In addition to the duties and powers enumerated in its Articles and Bylaws, or elsewhere provided for herein, and without limiting the generality thereof, the Association, through the Board, shall:

(a) Own, maintain, and otherwise manage all of the Association Property and all facilities, improvements, and landscaping thereon, including front yard landscaping as provided elsewhere herein.

(b) Pay any real and personal property taxes and other charges assessed against the Association Property.

(c) Notwithstanding Section 2.2(b) hereof, grant easements where necessary for access and for utilities and sewer facilities over, upon, and under the Association Property to serve the Property and the Lots.

(d) Maintain liability insurance and such other policy or policies of insurance as provided in Sub-Section (l)(iii) below.

(e) Have the authority to employ a Manager or other persons and to contract with independent contractors or managing agents to perform all or any part of the duties and responsibilities of the Association, provided that any such contract with a person or firm appointed shall not exceed one (1) year in term unless approved by the vote of a majority of the Members of the Association.

(f) Enforce applicable provisions of the Governing Documents of the Association.

(g) Establish and enforce uniform Rules and Regulations regarding the Community, including the levy of reasonable fines and penalties for violation thereof.

(h) Have the right upon notice to Owner, to enter upon any Lot (but not the interior of any Dwelling) where necessary in connection with construction, maintenance, or repair of a Lot per Section 4.5 or Association Property and to enforce Owners' obligations under the Governing Documents.

(i) Establish and maintain an adequate reserve fund from annual assessments at least equal to two (2) months' normal monthly assessments from the Owners, for the periodic maintenance, repair, and replacement of improvements to the Association Property. Additionally, the Board shall obtain a Reserve Study, which shall be completed as provided under the Act, and which shall be performed as often as required by the Act. The Board shall review the latest Reserve Study annually in preparation of the next annual budget.

(j) Obtain an annual audit of the Association's financial books and records by a Certified Public Accountant.

(k) Cause all officers or employees having fiscal responsibilities to be bonded, as the Board of Directors may deem appropriate; and purchase Directors' and Officers' Liability Insurance as it deems necessary.

(l) Review annually all insurance policies and bonds maintained by the Association.

(m) Acting for itself and for all Owners, obtain and maintain at all times insurance of the type of policy and amount as set forth hereinafter for the benefit of the Owners and the Association as its interest may appear. Payments of premiums for such insurance shall be considered a purpose for which assessments may be levied by the Association pursuant to Article IV hereof:

(i) A fire insurance policy with extended coverage and inflation guard endorsements for the full insurable replacement value (excluding land and foundations) of all structures and improvements located on the Association Property. Such policy or policies shall provide for a maximum deductible of the lesser of $1,000.00 adjusted for inflation or one percent (1%) of the individual building replacement cost.

(ii) OWNERS AND THE DECLARANT SHALL MAINTAIN AT THEIR OWN EXPENSE HAZARD (FIRE) AND LIABILITY INSURANCE ON THEIR RESPECTIVE LOTS AND CONTENTS.

(iii) The Association shall obtain a policy or policies insuring the Association, its officers and Board of Directors, Owners and employees against any liability to the public, the Owners, contract purchasers in possession, their invitees or tenants, incident to ownership or use of the Association Property. Limits of liability under such policy shall not be less than $1,000,000.00 for personal injury and $300,000.00 for property damage for each occurrence. Such policy or policies shall be issued on a comprehensive liability basis to provide cross-liability endorsements wherein the rights of the named insured under the policy shall not be prejudiced as respects the right of action of any such insurance against any other named insured. Said policy or policies shall include a severability of interest endorsement which will preclude the insurer from denying the claim of an Owner because of negligent acts of the Association or other Owners.

(iv) The Association may obtain Fidelity bond or policy insuring the Association against dishonest acts by its officers, directors, trustees, and employees who are responsible for handling funds of the Association. Such coverage shall be not less than one hundred percent (100%)--subject to a minimum deductible of $500.00, adjusted for inflation--of the estimated annual operating expenses. The Board shall have the discretion to negotiate the deductible amount under the Association's insurance policies.

(v) All insurance policies required under this Article shall be written by a company licensed to do business in Nevada and holding a rating of Class VI or better by Best's Insurance Reports or equivalent report.

(vi) Exclusive authority to adjust losses under policies obtained by the Association pursuant to this Article shall be vested in the Association or its authorized representatives.

(vii) In no event shall the insurance coverage obtained and maintained by the Association hereunder be brought into contribution with insurance purchased by individual Owners or their Mortgagees.

(n) Exercise the powers provided in the Act where not in conflict with this Declaration.

(o) Have and exercise any rights or privileges given to it expressly by this Declaration, or reasonably implied from the provisions of the Declaration, or given or implied by law, or which may be necessary or desirable to fulfill its duties, obligations, rights, or privileges.

6.1Maintenance Obligations of Owners

It shall be the duty of each Owner, at the Owner's expense, subject to Architectural Committee approval, when applicable, to maintain, repair, replace, and restore the Residence, and Improvements on the Owner's Lot. If any Owner shall permit any Residence, or Improvement, the maintenance of which is the responsibility of such Owner, to fall into disrepair or to become unsafe, unsightly or unattractive, or to otherwise violate this Declaration, the Board shall have the right to seek any remedies at law or in equity which it may have to correct the situation. In addition, the Board shall have the right, but not the duty, after notice and hearing as provided in the Bylaws, to enter upon such Owner's Lot to make such repairs or to perform such maintenance and to charge the cost thereof to the Owner. Said cost shall be a Single Lot Assessment enforceable as set forth in this Declaration.

6.2Damage to Association Property by Owner

The cost of any maintenance, repairs, or replacements by the Association on the Association Property or to landscaping on an Owner's Lot maintained by the Association arising out of or caused by the willful or negligent act of an Owner, his/her tenants, or their Families, guests, or invitees shall, after notice and hearing, be levied by the Board as a single lot assessment against such Owner.

To the extent permitted by Nevada law, each Member shall be liable to the Association for any damage to the Association Property not fully reimbursed to the Association by insurance (including without limitation any deductible amounts under any insurance policies against which the Association files a claim for such damage) if the damage is sustained because of the negligence, willful misconduct or unauthorized or improper installation or maintenance of any Improvements by the Member, his/her guests, tenants or invitees, or any other persons deriving their right and easement of use and enjoyment of the Association Property from the Member, or his/her or their respective family, guests, both minor and adult. However, the Association, acting through the Board, reserves the right to determine whether any claim shall be made upon the insurance maintained by the Association, and the Association further reserves the right, after notice and hearing as provided in the Bylaws, to levy a single lot assessment equal to the increase, if any, in insurance premiums directly attributable to the damage caused by the Member or the person for whom the member may be liable as described above. In the case of joint ownership of a Lot, the liability of the Owners shall be joint and severable, except to the extent the Association shall have previously contracted in writing with the joint Owners to the contrary. After notice and hearing as provided in the Bylaws, the cost of correcting the damage to the extent not reimbursed to the Association by insurance shall be a single lot assessment against such Member's Lot, and may be enforced as provided herein.

6.3Damage and Destruction Affecting Dwelling Lots - Duty to Rebuild

If all or any portion of any Lot or Improvement thereon is damaged or destroyed by fire or other casualty, it shall be the duty of the Owner of such Lot to diligently rebuild, repair, or reconstruct the same in a manner which will restore it substantially to its appearance and condition immediately prior to the casualty as approved by the Architectural Committee. The Owner shall cause reconstruction to commence within three (3) months after the damage occurs and to be completed within nine (9) months after damage occurs, unless prevented by causes beyond his/her reasonable control. A transferee of title to the Lot which is damaged shall commence and complete reconstruction in the respective periods which would have remained for the performance of such obligations if the Owner of the Lot at the time of the damage still held title to the Lot.

7.1Architectural Committee Approval of Improvements

(a) Approval Generally. Before commencing construction or installation of any Improvement within the Community other than the initial construction of Lots by the Declarant, the Owner planning such Improvement must submit to the Association's Architectural Committee a written request for approval. The Owner's request under this Article shall include color schemes, exterior finish, structural plans, specifications, and plot plans satisfying the requirements of this Article and Section. Unless the Architectural Committee's approval of the proposal is first obtained, no work on the Improvement shall be undertaken. The Architectural Committee shall base its decision to approve, disapprove, or conditionally approve the proposed Improvement on the criteria described in this Article and Section.

The Architectural Committee may require such detail in plans and specifications submitted for its review as it deems proper, including without limitation, floor plans, site plans, drainage plans, landscaping plans, elevation drawings and descriptions or samples of exterior materials and colors. Until receipt by the Architectural Committee of any required plans and specifications, the Architectural Committee may postpone review of any plans and specifications submitted for approval. Any application submitted pursuant to this Article VII shall be deemed approved, unless written disapproval or a request for additional information or materials by the Architectural Committee shall have been transmitted to the applicant within sixty (60) days after the date of receipt by the Architectural Committee of all required materials. The Architectural Committee will condition any approval required in this Article VII upon, among other things, compliance with Declarant's (a) design criteria, (b) Improvement standards and (c) development standards, as amended from time to time, all of which are incorporated herein by this reference.

(b) Modification to Approved Plans Must Also be Approved. Once a work of Improvement has been duly approved by the Architectural Committee, no material modifications shall be made in the approved plans and specifications therefore and no subsequent alteration, relocation, addition or modification shall be made to the work of Improvement, as approved, without a separate written submission to, and review and approval by, the Architectural Committee. If the proposed modification will have, or is likely to have, a material affect on other aspects or components of the work, the Architectural Committee, in its discretion, may order the Owner, or Owner's contractors and agents, to cease working not only on the modified component of the Improvement, but also on any other affected component.

7.2Committee Membership

The Architectural Committee shall be composed of three (3) members of the Association appointed by the Board. Until the expiration of the Declarant's Control Period, the Declarant shall elect all members of the Architectural Committee. In selecting members for the Architectural Committee, the Board of Directors shall, when available, endeavor to select persons whose occupations or education will provide technical knowledge and expertise relevant to matters within the Architectural Committee's jurisdiction. Architectural Committee members shall serve for one (1) year terms, subject to the Board's power to remove any Architectural Committee member at any time with or without cause and to appoint a successor. Members of the Architectural Committee shall not be entitled to any compensation for services performed pursuant hereto.

7.3Duties of Architectural Committee

It shall be the duty of the Architectural Committee to consider and act upon the proposals and plans submitted to it pursuant to this Declaration, to adopt Architectural Guidelines pursuant to this Article, to perform other duties delegated to it by the Board, and to carry out all other duties imposed upon it by this Declaration.

7.4Meetings

The Architectural Committee shall meet from time to time as necessary to properly perform its duties hereunder. The vote or written consent of a majority of the Architectural Committee members shall constitute the action of the Architectural Committee, and the Architectural Committee shall keep and maintain a written record of all actions taken.

The Owner-Applicant shall be entitled to appear at any meeting of the Architectural Committee at which the Owner's proposal has been scheduled for review and consideration. The Owner shall be entitled to be heard on the matter and may be accompanied by an architect, engineer, and/or contractor. Other Owners whose properties may be affected by the proposed Improvement in terms of the structural integrity of any adjoining Lot, view, privacy, or solar access of the Applicant's or any adjacent Lot, noise, or other considerations shall also be entitled to attend the meeting.

Reasonable notice of the time, place, and proposed agenda for Architectural Committee meetings shall be communicated before the date of the meeting to any Owner-Applicant whose application is scheduled to be heard.

7.5Architectural Guidelines

The Architectural Committee may, from time to time with approval of the Board of Directors, adopt, amend, and repeal rules and regulations to be known as "Architectural Guidelines." The Architectural Guidelines shall interpret and implement the provisions hereof by setting forth: (a) the standards and procedures for Architectural Committee review, including the required content of Improvement plans and specifications; (b) guidelines for architectural design, placement of any work of Improvement or color schemes, exterior finishes and materials and similar features which are recommended or required for use within the Project; and (c) the criteria and procedures for requesting variances from any property use restrictions that would otherwise apply to the proposed Improvement under the Governing Documents.

7.6Basis for Approval of Improvements

When a proposed Improvement is submitted to the Architectural Committee for review, the Architectural Committee shall grant the requested approval only if the Architectural Committee, in its sole discretion, finds that all of the following provisions have been satisfied:

(a) The Owner has complied with those provisions of the Architectural Guidelines pertaining to the content and procedures for submissions of plans and specifications;

(b) The Owner's plans and specifications: (i) conform to this Declaration and to the Architectural Guidelines in effect at the time such plans are submitted to the Architectural Committee; (ii) will result in the construction of an Improvement that is in harmony with the external design of other structures and/or landscaping within the Project; and (iii) will not interfere with the reasonable enjoyment of any other Owner of his/her Unit; and

(c) The proposed Improvement(s), if approved, will otherwise be consistent with the architectural and aesthetic standards prevailing within the Project and with the overall plan and scheme of the development and the purposes of this Declaration.

The Architectural Committee shall be entitled to determine that a proposed Improvement or component thereof is unacceptable when proposed on a particular Lot, even if the same or a similar Improvement or component has previously been approved for use at another location within the Project, if factors such as drainage, topography, or visibility from roads, Common Elements or other Lots or prior adverse experience with the product or components used in construction of the Improvement, design of the Improvement, or its use at other locations within the Project mitigate against erection of the Improvement or use of a particular component thereof on the Lot involved in the Owner's submission. It is expressly agreed that the Architectural Committee shall be entitled to make subjective judgments and consider the aesthetics of a proposal when considering an Owner's request so long as the Architectural Committee acts reasonably and in good faith.

Once the Architectural Committee has received a complete application (as described in the Architectural Guidelines), then the Architectural Committee shall have sixty (60) days to make its determination. If the Architectural Committee does not respond in writing to the applicant within the sixty (60) day period, then the application will be deemed approved as submitted.

7.7Proceeding With Work

Upon receipt of approval of an Improvement from the Architectural Committee, the Owner shall, as soon as practicable, diligently proceed with the construction, if required, pursuant to said approval. Work on an Improvement project shall commence within three (3) months from the date of such approval and be completed within one (1) year. If the Owner fails to comply with this Section, any approval given pursuant to this Article VII shall be deemed revoked unless the Architectural Committee, upon written request of the Owner prior to the expiration of the initial one (1) year period, extends the time for commencement or completion.

7.8Landscaping

The First Amendment (2006) adds Section 7.8A, rules for roof and balcony decks.

All landscaping within the Project, including Common Areas and Association Property, the front yards on all Lots, and any Common or Perimeter retaining walls, shall be maintained by the Association. Additionally, until the Declarant has completed the build-out of the Project, no Owner shall be permitted to install any boundary walls or fencing on the Owner's Lot.

7.9Enforcement

(a) In addition to other enforcement remedies set forth in this Declaration, the Architectural Committee shall have enforcement rights with respect to any matters required to be submitted to and approved by it, and may enforce such architectural control by any proceeding at law or in equity. In addition, the Architectural Committee shall have the authority to order an abatement of any construction, alteration or other matter for which approval is required, to the extent that it has not been approved by the Architectural Committee or if it does not conform to the plans and specifications submitted to the Architectural Committee. No work for which approval is required shall be deemed to be approved simply because it has been completed without a complaint, notice of violation, or commencement of a suit to enjoin such work. If any legal proceeding is initiated to enforce any of the provisions hereof, the prevailing party shall be entitled to recover reasonable attorneys' fees in addition to the costs of such proceeding.

(b) If the Owner fails to remedy any noticed noncompliance within thirty (30) days from the date of such notification, the Architectural Committee shall notify the Board in writing of such failure. The Board shall then set a date on which a hearing before the Board shall be held regarding the alleged noncompliance. The hearing date shall not be more than thirty (30) days nor less than fifteen (15) days after the notice of the noncompliance is issued by the Board to the Owner, to the Architectural Committee and, in the discretion of the Board, to any other interested party.

(c) At the hearing, the Owner, a representative(s) of the Architectural Committee and, in the Board's discretion, any other interested person may present information relevant to the question of the alleged noncompliance. After considering all such information, the Board shall determine whether there is a noncompliance and if so, the nature thereof and the estimated cost of correcting or removing the same. If a noncompliance is determined to exist, the Board shall require the Owner to remedy or remove the same within such period or within any extension of such period as the Board, at its discretion, may grant. If the Owner fails to take corrective action after having a reasonable opportunity to do so, the Board at its option, may either remove the noncomplying Improvement or remedy the noncompliance and the Owner shall reimburse the Association upon demand for all expenses incurred in connection therewith. If such expenses are not properly repaid by the Owner to the Association, the Board shall recover such expenses through the levy of a Single Lot Assessment against such Owner.

(d) The approval by the Architectural Committee of any plans, drawings or specifications for any work of Improvement done or proposed, or for any other matter requiring the approval of the Architectural Committee under this Declaration, or any waiver thereof, shall not be deemed to constitute a waiver of any right to withhold approval of any similar plan, drawing, specification, or matter subsequently submitted for approval by the same or some other Owner.

7.10Variances

The Architectural Committee, in its sole discretion, shall be entitled to allow reasonable variances in any procedures specified in this Article, or in any land use restriction specified in Article VIII to overcome practical difficulties, avoid unnecessary expenses, or prevent unnecessary hardship to Owner-applicants, provided that the Architectural Committee is able to make a good faith written determination that the variance is consistent with one or more of the following criteria: (i) the requested variance will not constitute a material deviation from any restriction contained herein or that the proposal allows the objectives of the violated requirement(s) to be substantially achieved despite noncompliance; (ii) the variance relates to a land use restriction or minimum construction standard otherwise applicable hereunder that is unnecessary or burdensome under the circumstances; or (iii) the variance, if granted, will not result in a material detriment, or create an unreasonable nuisance with respect to any other Lot or Common Area within the Project.

7.11Limitation on Liability

Neither the Association, its Architectural Committee, nor any member thereof shall be liable to any Owner for any damage, loss, or prejudice suffered or claimed on account of any mistakes in judgment, negligence or nonfeasance arising out of: (a) the approval or disapproval of any plans, drawings, and specifications, whether or not defective; (b) the construction or

performance of any work of Improvement, whether or not pursuant to approved plans, drawings, or specifications; (c) the execution and filing of a notice of noncompliance pursuant to Section 7.9 above whether or not the facts therein are correct, provided that such member has acted in good faith upon the basis of such information as may be possessed by him or her.

7.12Compliance with Government Regulations

Review and approval by the Architectural Committee of any proposals, plans, or other submissions pertaining to Improvements shall in no way be deemed to constitute satisfaction of, or compliance with, any building permit process or any other governmental requirements, the responsibility for which shall rest solely with the Owner who desires to construct, install, or modify the Improvement.

7.13Appeals

Appeals from decisions of the Architectural Committee may be made to the Board of Directors, which may elect, in its discretion, to hear the appeal or, in the alternative, to affirm the decision of the Architectural Committee. The Association Rules shall contain procedures to process appeals pursuant to this Section.

7.14Handicapped

Notwithstanding any other Rule or Regulation, the Board of Directors shall make reasonable accommodations in the Rules and Regulations if those accommodations may be necessary or be required by law to afford a handicapped person equal opportunity to use and enjoy his or her Lot.

7.15Declarant Exception

The provisions of this Article shall not apply to the initial construction by the Declarant of Residences or other Improvements to the Property, and neither the Board nor any Committee appointed by the Board shall have any authority or right to approve or disapprove the initial construction by the Declarant of Residences or other Improvements to the Property.

8.1Alterations

Replaced in its entirety by the First Amendment (2006). Read the current wording.

No Improvement to the exterior of a Dwelling, garage, or other structure on a Lot may be altered, remodeled, or modified in any other way except with the prior written approval of the Architectural Committee.

8.2Declarant's Exceptions

The Declarant (and its sales agents and representatives) may maintain signs, sales and management offices, and models within the Project until the earlier of the closing of the sale of the last Lot in the Project or seven (7) years from recording of the Declaration. No provision contained in this Article VIII shall be applicable to or prohibit any acts or activities by the Declarant (and its agents, suppliers, and contractors) in connection with or incidental to the Declarant's improvement and development of the Property during the Declarant's Control Period.

8.3Drainage

All slopes and patios on any Lot shall be maintained so as to prevent any erosion or drainage upon adjacent Lots.

8.4Drilling

No oil drilling, oil development operations, oil refining, quarrying, or mining operations of any kind shall be permitted upon or in any Lot, nor shall oil wells, tanks, tunnels, or mineral excavations or shafts be permitted upon the surface of any Lot or within five hundred (500) feet below the surface of the Project. No derrick or other structure designed for use in boring for water, oil, or natural gas shall be erected, maintained, or permitted upon any Lot.

8.5No Parking Areas

The fourth sentence was replaced by the First Amendment (2006). Read the current wording.

There shall be absolutely no parking in marked fire lanes. Vehicles must be parked in garages, driveways and/or other designated parking areas. Owners and occupants are expected to use their Garages and/or driveways for the parking of their vehicles. Each Owner must be able to park at least one (1) vehicle in the Owner's garage before parking the Owner's other vehicle(s) in the Owner's driveway or other designated parking space. Any vehicle found to be in violation of the Community's parking rules may be towed or booted as provided in NRS § 116.3102(5). The owners of the vehicle found to be in violation shall be responsible for all fines and costs associated with such booting or towing as established by the towing company.

8.6Garages

The second sentence was deleted by the First Amendment (2006).

Garages shall be kept reasonably closed at all times, except as reasonably required for ingress to and egress from the interior of the Garages. All Garages must be free of obstruction so as to allow for storage of vehicles within. No Garage shall at any time be converted to any other use, other than as a Garage.

8.7Landscape Maintenance

The Association shall be responsible for the maintenance, repair and appearance of Common Area landscaping, and the front yard landscaping of each Unit, excluding driveways, porches and any side yard located behind a wall or fence. Owners shall keep and maintain in good repair and appearance all portions of the Lot and Residence thereon, including all landscaping which is not maintained by the Association.

8.8Lease

Each Owner shall have the right to lease his/her Lot, provided such lease is in writing and that it provides that the tenant shall be bound by and obligated to the provisions of the Governing Documents. Failure to comply with the provisions of the Governing Documents shall be a default of the lease allowing the Association the same rights of action as the Owner against the tenant. For the purpose of exercising such rights, the Owner grants to the Association a special power of attorney, which includes the power of eviction against the tenant as well as the Owner because of the default. No Owner shall lease his/her Lot for transient or hotel purposes. Any Lease which is either for a period of less than six (6) months or pursuant to which the Owner provides any services normally associated with a hotel shall be deemed to be for transient or hotel purposes. A signed lease shall be filed with the Association within ten (10) days of occupancy by the tenant. No individual Owner, or group of Owners, may own more than five (5) Residences within the Project at any one time.

8.9Manufactured Homes

Manufactured Homes as defined in NRS §489.113, or successor act, are prohibited in the Project.

8.10Nuisance

No rubbish or debris of any kind shall be placed or permitted to accumulate anywhere within the Project, and no odor shall be permitted to arise therefrom so as to render the Project or any portion thereof unsanitary, unsightly, or offensive. No noise or other nuisance shall be permitted to exist or operate upon any portion of a Lot so as to be offensive or detrimental to any other Lot or to its occupants. Without limiting the generality of any of the foregoing provisions, no exterior speakers, horns, whistles, bells, or other sound devices, noisy or smoky vehicles, large power equipment or large power tools, unlicensed off-road motor vehicles, or other items which may unreasonably disturb other Owners or their tenants shall be located, used, or placed on any portion of the Project. Alarm devices used exclusively to protect the security of a Lot and its contents shall be permitted, provided that such devices do not produce annoying sounds or conditions as a result of frequently occurring false alarms. Nothing other than draperies and window covering as permitted by this Declaration may be installed on any Lot so as to be visible from the exterior of the Lot without the prior written approval of the Executive Board. No clothing or household fabrics shall be hung, dried, or aired in a manner that is visible from any Private Street.

8.11Outside Antenna/Satellite Dishes

Other than satellite dishes exempted by the FCC, no television, radio, or other electronic antenna, dish or device of any type shall be erected, constructed, placed, or permitted to remain on any of the Lots or buildings constructed on the Lots unless and until the same shall have been approved in writing by the Architectural Committee. Use of electronic devices which interfere with the operation of the garage door openers, television reception and cellular phones, and the like are prohibited.

8.12Parking and Vehicular Restrictions

Replaced in its entirety by the First Amendment (2006). The text below is the original; read the current rule.

In addition to the parking restrictions set forth in Section 8.5, Owners shall not park, store, or keep on their driveway or on any street within the Property areas, except within parking areas designated by the Board, any large commercial type vehicle (including, but not limited to, any dump truck, cement mixer truck, oil or gas truck, or delivery truck); any recreational vehicle (including, but not limited to, any camper, travel trailer, or motor home); any bus, trailer, trailer coach, camp trailer, watercraft, aircraft or mobile home; or any inoperable vehicle. No Owner shall park, store, or keep anywhere within the Property any vehicle or vehicular equipment, mobile or otherwise, deemed to be a nuisance by the Board. Moreover, when not in use, any small recreational vehicle, (e.g., four-wheeler, wave-runner, etc.) shall be stored in the Owner's Garage.

8.13Pets

Animals, livestock, and poultry shall not be raised, bred or kept on any Lot, except domestic household pets (e.g., cats and dogs) not exceeding a total of two (2), may be kept on each Lot, provided it is not kept, bred or maintained for any commercial purpose. Pets shall be kept on the Lot, except when under leash or when being transported to or from the Lot in a motor vehicle. Owner's will be responsible for removal of their pet's feces. If a pet becomes a nuisance or an annoyance to the other Owners, the Board may, after appropriate notice and a hearing, confine or remove the animal at the Owner's expense.

8.14Playground Equipment

All bicycles, tricycles, scooters, skateboards, and other play equipment, wading pools, baby strollers, and similar items shall be stored on the Lot when not in use. Basketball backboards shall not be placed or stored in the street or on a sidewalk.

8.15Residential Use Only

Other than the Declarant's exceptions per Section 8.2, no part of the Project shall ever be used or caused to be used or allowed or authorized in any way, directly or indirectly, for any business, commercial, manufacturing, mercantile, storing, vending, or other such non-residential purposes except for sales office on a temporary basis. The provisions of this Section shall not preclude an occupant from engaging in any non-obtrusive occupation or business activity (e.g. accountant, bookkeeper, etc.), so long as: (i) such occupant conducts its activities in conformance with all ordinances; and (ii) such business activity is merely incidental to the use thereof as a Dwelling.

8.16Security Interest Liens

Breach of any of the covenants in this Article VIII shall not defeat or render invalid the lien of any First Security Interest made in good faith and for value as to said Lots or Property, or any part thereof, but such provisions, restrictions, or covenants shall be binding and effective against any Owner whose title thereto is acquired by foreclosure, Trustee's sale or otherwise.

8.17Signs

No sign, poster, billboard, advertising device, or other display of any kind shall be displayed so as to be visible from outside any Lot without the approval of the Architectural Committee. In addition, the following shall apply:

(a) Subject to Declarant's reserved rights, absolutely no "For Sale" or "For Rent" or similar sign shall be installed, posted, permitted or allowed on any Lot or Improvement thereon until the conveyance from Declarant to the Purchaser of the final Lot from the Lots That May Be Created. Once the conveyance has occurred from Declarant to the Purchaser of the final Lot from the Lots That May Be Created, the following "For Sale" or "For Rent" sign may be displayed with the prior written approval of the Architectural Committee: one (1) sign for each Lot, not larger than eighteen (18) inches by thirty (30) inches, advertizing the Lot for sale or rent.

(b) Notwithstanding the foregoing, Owners and/or Occupants shall not be prohibited from exhibiting a political sign on the Owner's Lot, if the political sign is no larger than twenty four (24) inches by thirty six (36) inches. A political sign means a sign that expresses support for or opposition to a candidate, political party or ballot question.

8.18Temporary Buildings

No temporary structure, trailer, mobile home, camper, tent, shack, garage, barn, or other out-building shall be used on any Lot at any time as a Residence.

8.19Timeshare

No Lot shall be made subject to any time share program, interval ownership, or similar program whereby the right to exclusive use of the Lot rotates among multiple owners or members of the program on a fixed or floating time schedule over a period of years.

8.20Trash

All rubbish, trash, and garbage shall be regularly removed from the Lots, and shall not be allowed to accumulate thereon. All clotheslines, refuse containers, woodpiles, storage area, and machinery and equipment shall be prohibited upon any Lot, unless obscured from view at ground level of adjoining Lots and streets, by a masonry wall or appropriate screen approved by the Architectural Committee.

8.21Vehicle Repair

No Owner or other occupant of any Lot shall conduct repairs or restorations of any motor vehicle, watercraft, trailer, aircraft, or other vehicle upon a Lot within the Project, except wholly within the Owner's Lot; provided, however, that such activity shall at no time be permitted if it is determined by the Board to be a nuisance. Notwithstanding the foregoing, these restrictions shall not be interpreted in such a manner so as to permit any activity which would be contrary to any local ordinance. No Garage shall at any time be converted to any other use, other than as a Garage.

8.22Window Coverings

Within sixty (60) days from the date of becoming an Owner, such Owner shall install draperies and window coverings for all windows and glass doors in such Owner's Lot. Reflective window coverings are prohibited.

8.23Prohibited Vehicular Access

No Owner of a Lot abutting a public right of way or Private Street within the Community may have direct access to the public right of way or Private Street from the Owner's abutting Lot or through the Association's Common Lot.

9.1Rights of Eligible Security Interest

No breach of the covenants, conditions, and restrictions in this Declaration, nor the enforcement thereof or of any lien provision, except as provided in Section 4.14, shall defeat or render invalid the lien of any Security held by an Eligible Security Interest made in good faith and for value. However, all of the covenants, conditions, and restrictions in this Declaration shall be binding upon any Owner whose title is derived through foreclosure or exercise of power of sale, or otherwise.

9.2Notice to Eligible Security Interest

(a) Notice of Action. Upon written request to the Association, identifying the name and address of the Eligible Security Holder, Eligible Insurer or Guarantor, and the Lot number or address, any such Eligible Security Holder or Eligible Insurer, or Guarantor will be entitled to timely notice of:

(i) Any delinquency in the payments of assessments or charges owned by an Owner of a Lot subject to an eligible mortgage held, insured, or guaranteed by such Eligible Security Holder, Eligible Insurer, or Guarantor, which remains uncured for a period of sixty (60) days;

(ii) Condemnation or casualty loss that effects a material portion of the Project.

9.3Time of Notice to Security Interest

The Board shall give thirty (30) days prior written notice to each Eligible Security Interest represented in the real property of any amendment or alteration of the Declaration or Articles. In addition, the Board shall give each Security Holder, who requests same in writing, a copy of notices of liens filed against any Lot.

9.4Condemnation

If any Lot or portion thereof or the Association Property and facilities or any portion thereof is made the subject matter of any condemnation or eminent domain proceeding, no provision of this Declaration, Articles, Bylaws, or equivalent documents will entitle the Owner of a Lot or other party to priority over an institutional Holder of any First Security Interest or equivalent security interest on a Lot with respect to any distribution to such Lot of the proceeds of any award or settlement.

10.1Legal Proceedings

The Board shall not institute any civil action¹ or administrative proceeding against any person, including the Declarant, without first providing each of the Members at least twenty-one (21) days' prior written notice of the meeting of the Association to consider institution of a civil action or administrative proceeding.

The notice shall describe the purpose of the legal proceeding, the parties to the proceeding, the anticipated cost to the Association (including attorneys' fees) in the proceeding, the source of funds to fund the proceeding (reserves or special or regular assessments), and suggested information that should be disclosed to third parties, such as prospective purchasers and lenders, while the proceeding is being prosecuted. Except as otherwise provided in this Section, the Association may commence a civil action or administrative proceeding only upon the affirmative vote of the Owners of Lots to which at least a majority of the votes of the Members of the Association are allocated. The provisions of this Section do not apply to a civil action that is commenced:

(a) To enforce the payment of an assessment;

(b) To enforce the Declaration, Bylaws, or Rules of the Association;

(c) To enforce a contract with a vendor;

(d) To proceed with a counterclaim; or

(e) To protect the health, safety, and welfare of the Members of the Association;

If a civil action is commenced without the required vote or agreement, the action must be ratified within ninety (90) days after the commencement of the action by a vote or written agreement of the Owners of the Lots to which at least a majority of votes of the Members of the Association are allocated.

At least ten (10) days before the Association commences or seeks to ratify the commencement of a civil action, the Association shall provide a written statement to all Members that includes: (i) a reasonable estimate of the costs of the civil action, including reasonable attorney's fees; (ii) an explanation of the potential benefits of the civil action and the potential adverse consequences if the Association does not commence the action or if the outcome of the action is not favorable to the Association; and (iv) all disclosures that are required to be made upon the sale of any real property; or

No Person other than a Member may request the dismissal of a civil action commenced by the Association on the ground that the Association failed to comply with any provisions of this Section.

¹ Defined as an action for damages or equitable relief. The term does not include an action for injunctive relief in which there is an immediate threat of irreparable harm, or relating to title to real property.

10.2Arbitration/Mediation

The Declarant, the Association (including its officers, directors and committee members), all Owners and other persons subject to this Declaration, and any other person not otherwise subject to this Declaration who agrees to submit to this Section 10.2 ("Bound Party" or collectively, "Bound Parties") agree to encourage the amicable resolution of disputes involving the Property, without the emotional and financial costs of litigation. Accordingly, each Bound Party covenants and agrees that those claims, grievances, or disputes described in Section 10.3 below ("Claims") shall be resolved using the procedures set forth in Section 10.4 in lieu of filing suit in any court.

10.3Claims

Unless specifically exempted below, all Claims arising out of or relating to the interpretation, application, or enforcement of the Association's governing documents (i.e., Articles, Bylaws, Declaration, etc.) or the rights, obligations, and duties of any Bound Party under the Association's governing documents or relating to the design or construction of the Improvements on the Property shall be subject to the provisions of Section 10.4. However, matters of aesthetic judgment shall be governed by Article VII, and shall not constitute a Claim.

Notwithstanding the foregoing, unless all parties thereto otherwise agree, the following shall not constitute Claims and shall not be subject to the provisions of Section 10.4:

(a) any suit by the Association against a Bound Party to enforce the provisions of Article IV;

(b) any suit by the Association to obtain a temporary restraining order (or equivalent emergency equitable relief) and such other ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association's ability to enforce the provisions of Articles VI and VII;

(c) any suit between Owners, which does not include the Declarant or the Association as a party, if such suit asserts a Claim which would constitute a cause of action independent of the Association's governing documents;

(d) any suit as to which any applicable statute of limitations would expire within 180 days of giving the Notice required by Section 10.4(a), unless a party or parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Article X.

With the consent of all parties thereto, any of the above may be submitted to the alternative dispute resolution procedures set forth in Section 10.4.

10.4Mandatory Procedures

(a) Notice. Any Bound Party having a Claim ("Claimant") against any other Bound Party ("Respondent") (collectively, the "Parties") shall notify each Respondent in writing (the "Notice"), stating plainly and concisely:

(i) the nature of the Claim, including the persons/parties involved and Respondent's role in the Claim;

(ii) the legal basis of the Claim (i.e., the specific legal authority out of which the Claim arises);

(iii) Claimant's proposes remedy; and

(iv) that Claimant will meet with Respondent to discuss good faith ways to resolve the Claim.

(b) Negotiation and Mediation. The Parties shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist the Parties in negotiation.

If the Parties do not resolve the Claim within thirty (30) days of the date of the Notice (or within such other period as may be agreed upon by the Parties) ("Termination of Negotiations"), Claimant shall have thirty (30) additional days to submit the Claim to mediation under the auspices of any independent agency providing dispute resolution services in Clark County, Nevada.

If Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation, Claimant shall be deemed to have waived the Claim, and Respondent shall be released and discharged from any and all liability to Claimant on account of such Claim; provided, nothing herein shall release or discharge Respondent from any liability to any person other than Claimant.

Any settlement of the Claim through mediation shall be documented in writing by the mediator and signed by the Parties. If the Parties do not settle the Claim within thirty (30) days after submission of the matter to mediation, or within such time as determined by the mediator, the mediator shall issue a notice of termination of the mediation proceedings ("Termination of Mediation"). The Termination of Mediation notice shall set forth that the Parties are at an impasse and the date that mediation was terminated.

Within five (5) days of the Termination of Mediation, Claimant shall make a final written settlement demand ("Settlement Demand") to Respondent, and Respondent shall make a final written settlement offer ("Settlement Offer") to Claimant. If Claimant fails to make a Settlement Demand, Claimant's original Notice shall constitute the Settlement Demand. If Respondent fails to make a Settlement Offer, Respondent shall be deemed to have made a "zero" or "take nothing" Settlement Offer.

10.5Allocation of Costs of Resolving Claims

Subject to Section 10.4(b), each Party shall bear its own costs, including attorneys' fees, and each Party shall share equally all charges rendered by the mediator(s) ("Post Mediation Costs").

10.6Enforcement of Resolution

After resolution of any Claim, if any Party fails to abide by the terms of any agreement, then any other Party may file suit or initiate administrative proceedings to enforce such agreement without the need to again comply with the procedures set forth in Section 10.4. In such event, the Party taking action to enforce the agreement shall be entitled to recover from the non-complying Party (or if more than one non-complying Party, from all such Parties pro rata) all costs incurred in enforcing such agreement, including, without limitation, attorneys' fees and court costs.

10.7Attorneys' Fees

In the event of an action instituted to enforce any of the provisions contained in the Association's governing documents, the Party prevailing in such action shall be entitled to recover from the other Party thereto as part of the judgment, reasonable attorneys' fees and costs, including administrative and lien fees, of such suit. In the event the Association is a prevailing party in such action, the amount of such attorneys' fees and costs shall be a single lot assessment with respect to the Lot(s) involved in the action.

11.1Non-Waiver

Failure by the Association, the Declarant, or any Owner to enforce any covenant, condition, restriction or reservation contained in this Declaration shall not be deemed a waiver of the right to do so thereafter.

11.2Severability

Should any provision in this Declaration be void or become invalid or unenforceable in law or equity by judgment or court order, the remaining provisions hereof shall be and remain in full force and effect.

11.3Amendments

During the period of time prior to expiration of the Declarant's Control Period, this Declaration may be amended by an instrument approved by sixty-seven percent (67%) of the Voting Power of each class of Members of the Association. The amendment shall become effective upon its recording in the Office of the County Recorder of Clark County, Nevada. At the expiration of the Declarant's Control Period, the Declaration may be amended by approval of (i) Sixty-seven percent (67%) of the total Voting Power of the Association, and (ii) at least sixty-seven percent (67%) of the Voting Power of Members of the Association other than Declarant.

Notwithstanding any other provisions of this Section 11.3, for so long as the Declarant owns any portion of the Property, but not later than seven (7) years from the recording of this Declaration, the Declarant may unilaterally amend or augment this Declaration by recording a written instrument signed by the Declarant in order to correct technical errors, or for clarification or to conform this Declaration to the requirements for planned communities then in effect by the VA, FHA, Fannie Mae, GNMA, FHLMC, the State of Nevada, or any county, city or applicable agency which has jurisdiction over the Project.

In the event this Declaration is amended, as provided herein, the Secretary of the Association shall, within thirty (30) days of the adoption of such amendment, prepare a copy of the amendment that was made and cause it to be hand-delivered or sent prepaid, by United States mail to the mailing address of each Residence, or to any other mailing address designated in writing by a Lot Owner.

11.4Extension of Declaration

Each and all of these covenants, conditions, and restrictions shall run with and bind the land for a term of twenty (20) years from the date this Declaration is recorded, after which date they shall automatically be extended for successive periods of ten (10) years unless they are canceled in writing by Owners of at least fifty-one percent (51%) of the Voting Power of the Association. All amendments must be recorded in the Office of the County Recorder of Clark County, Nevada.

11.5VA/FHA Approval

So long as Declarant retains effective control of the Association, the following actions shall require the prior written approval of VA or FHA, as applicable, if at such time the FHA or VA requires such prior written approval: (a) amendment of this Declaration; (b) mergers, consolidations or dissolutions of the Association; (c) annexation or deannexation of real property to or from the Properties; and (d) dedication, conveyance or mortgage of Common Area.

11.6No Public Right or Dedication

Nothing contained in this Declaration shall be deemed to be a gift or dedication of all or any part of the Community to the public, or for any public use.

11.7Interpretation

The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for the development of a residential community and for the maintenance of the Common Elements. The Article and Section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction. Unless the context requires a contrary construction, the singular shall include the plural and the plural the singular, and the masculine, feminine and neuter shall each include the masculine, feminine and neuter.

11.8Constructive Notice and Acceptance

Every person who owns, occupies or acquires any right, title, estate or interest in or to any Unit or other portion of the Community does hereby consent and agree, and shall be conclusively deemed to have consented and agreed, to every limitation, restriction, easement, reservation, condition and covenant contained herein, whether or not any reference to these restrictions is contained in the instrument by which such person acquired an interest in the Community, or any portion thereof.

11.9Notices

Any notice permitted or required to be delivered as provided herein shall be in writing and may be delivered either personally or by mail. If delivery is made by mail, it shall be deemed to have been delivered three (3) business days after a copy of the same has been deposited in the United States mail, postage prepaid addressed to any person at the address given by such person to the Association for the purpose of service of such notice, or to the residence of such person if no address has been given to the Association. Such address may be changed from time to time by notice in writing to the Association. Notice by personal delivery shall be deemed to have been given at time of delivery.

11.10Limited Liability

Except to the extent expressly prohibited by any applicable provision of NRS Chapter 116, neither Declarant nor Association, nor any director or officer, any committee representative, nor any agent or employee respectively thereof shall be liable to any Owner or any other Person for any action or for any failure to act with respect to any matter if the action taken or failure to act was in good faith. The Association shall indemnify every present and former officer and director and every person and former committee representative against all liabilities incurred as a result of holding such office, to the full extent permitted by law.

11.11Indemnity

Each Owner shall, to the maximum extent permitted by law, indemnify and hold free and harmless each and every one of: Declarant, Association, any director, or any officer, agent, employee, or committee representative, respectively of Declarant, Association, and/or their respective partners, members, divisions, subsidiaries and affiliated companies (if any), and their respective employees, officers, directors, members, shareholders, agents, professional consultants and representatives, and all of their respective successors and assigns (collectively, "Indemnitees") from and against any and all claims, damages, losses, liabilities, demands, and expenses, including, but not limited to, reasonable attorneys' fees, court costs and expenses of litigation (collectively, hereinafter referred to as "Liabilities"), arising out of or resulting from, or claimed to arise out of or result from, in whole or in part, any fault, act, or omissions of the Owner, any contractor or subcontractor employed by the Owner, anyone directly or indirectly employed by any of the foregoing entities, or anyone for whose acts any of the foregoing entities may be liable, in connection with: (a) any work by or of the Owner within the Community and/or the performance of the Owner's obligations with respect to any and all Improvements designed, installed, constructed, added, altered or remodeled by the Owner pursuant and subject to the Governing Documents, including, without limitation, any such loss, damage, injury or claim arising from or caused by or alleged to have arisen from or have been caused by (i) any use of the Lot or Unit, or any part thereof, (ii) any defect in the design, construction of, or material in, any structure or other Improvement upon the Lot, (iii) any defect in soils or in the preparation of soils or in the design and accomplishment of grading, including a spill of any contaminants or hazardous materials in or on the soil, (iv) any accident or casualty on the Lot or in the Community, (v) any representations by Owner or any of its agents or employees, (vi) a violation or alleged violation by the Owner, its employees or agents, of any applicable law, (vii) any slope failure or subsurface geologic or groundwater condition, (viii) any work of design, construction, engineering or other work with respect to the Lot or Community provided or performed by or for the Owner at any time whatsoever, or (ix) any other cause whatsoever in connection with Owner's use of the Lot or the Community, or Owner's performance under this Declaration, or any other Governing Document; or (b) the negligence or willful misconduct of Owner or its agents, employees, licensees, invitees or contractors in the development, construction, grading or other work performed off the Community by Owner pursuant to the Governing Documents, or any defect in any such work. Notwithstanding anything to the contrary contained in any of the documents referenced in the preceding sentence, Owner agrees and acknowledges that Indemnitees shall not be liable to Owner for any Liabilities caused by (i) any act or omission of Indemnitees with respect to the review of the Owner's Improvements and/or the drawings or specifications related to the Owner's Improvements, or (ii) any inspection or failure to inspect the construction activities of Owner by any of the Indemnitees, or (iii) any direction or suggestions given by any of the Indemnitees with respect to construction means, methods, techniques, sequences, or procedures, or for the safety precautions and programs in connection with the Owner's Improvements, or the failure to give any such direction or suggestion, or for any Liabilities which are covered by insurance or would be covered by insurance required to be maintained by the Owner, and Owner expressly waives any such Liabilities and releases Indemnitees therefrom. The covenants in this Section 11.11 and the obligations of each Owner, shall be binding on each Owner until such date as any claim or action for which indemnification or exculpation may be claimed under this Section 11.11 is fully and finally barred (or, if applicable, fully and finally resolved, and any payment required thereby has been made in full).

11.12Business of Declarant

Except to the extent expressly provided herein or as required by applicable, during the Declarant's Control Period, provision of NRS Chapter 116, no provision of this Declaration shall be applicable to limit or prohibit any act of Declarant, or its agents or representatives, in connection with or incidental to Declarant's Improvements and/or development of the Community.

11.13Compliance with NRS Chapter 116

It is the intent of Declarant that this Declaration and the Community shall be in all respects consistent with, and not in violation of, applicable provisions of NRS Chapter 116. In the event any provision of this Declaration is found to irreconcilably conflict with or violate such applicable provision of NRS Chapter 116, such offending provision of the Declaration shall be deemed automatically modified or severed herefrom, to the minimum extent necessary to conform to the applicable provision of NRS Chapter 116. Notwithstanding any other provision set forth herein, if any provision of NRS Chapter 116 should, in the future, be removed or made less burdensome (from the perspective of Declarant), as a matter of law, then the future change in such provision shall automatically be deemed to have been made and reflected in this Declaration.

11.14Exhibits

Exhibits "A" and "B" attached to this Declaration are incorporated by this reference and amendment of such Exhibits shall be governed by this Article.

12.1Annexation of Additional Property by Association

Upon approval in writing of the Association, pursuant to two-thirds (2/3) of a majority of the Voting Power of its Members, or the written assent of such Members, the owner of any property who desires to add it to the scheme of this Declaration and to subject it to the jurisdiction of the Association, may file or record a Declaration of Annexation which shall extend the scheme of this Declaration to the Project.

12.2Annexation by Declarant

If within seven (7) years from the date of the recording of this Declaration with the Clark County, Nevada, Recorder, the Declarant should develop any portions of the Annexable Area, such additional portions or any portion thereof may be added to the Properties and be subject to this Declaration and included within the jurisdiction of the Association by action of the Declarant without the assent of Members of the Association; provided, however, that the development of the Annexable Area shall be consistent with Improvements in the Original Property of development in terms of quality of construction. All Improvements in each portion of the Annexable Area will be substantially completed prior to annexation.

(a) Said annexation may be accomplished by the recording of a Declaration of Annexation or separate Declaration of Restrictions which requires Lot Owners therein to be Members of the Association. At the time of recording of the Declaration of Annexation, Declarant shall also by deed transfer to the Association the Association Property in the area being annexed.

(b) The obligation of a Lot Owner to pay dues to the Association and the right of such Lot Owners to exercise voting rights in the Association in such annexed property shall not commence until the first day of the month following close of the first sale of a Lot by the Declarant in that particular portion of the Annexable Area.

(c) Subject to annexation of additional property as set forth in this subsection:

(i) The Declarant hereby reserves for the benefit of and appurtenant to subsequent portion of the Annexable Area, the non-exclusive easements to use the Association Property on the Property, until such time as all portions are annexed pursuant to this Section, or until expiration of the right to annex.

(ii) The Declarant hereby reserves the right to grant, until expiration of the right to annex, for the benefit of and appurtenant to each Lot in the Original Property a non-exclusive easement to use the Association Property in the Annexable Areas not yet annexed pursuant to the provisions of and in the same manner prescribed by this Declaration to the same extent and with the same effect as if each of the Owners of Lots in Original Property owned a Lot in the Association Property of the Annexable Areas to be annexed.

(iii) The reciprocal cross-easements contained in this Declaration shall be effective as to each phase, and as to the Property, only until such time as each Phase has been annexed by the recording of a Declaration of Annexation or a separate Declaration of Covenants, Conditions, and Restrictions by the Declarant, or expiration of the right to annex pursuant to this Article.

(d) So long as the FHA or the VA is insuring or guaranteeing loans or has agreed to insure or guarantee loans on any portion of the Annexable Area with respect to the initial sales by Declarant of any Lot, then a condition precedent to any annexation of the Annexable Area shall be written confirmation by the FHA or the VA that the annexation is in accordance with the development plan submitted to and approved by the FHA or the VA; provided, however, that such written confirmation shall not be a condition precedent if the FHA or the VA ceases to issue such written confirmations.

(e) Portions of the Annexable Area may be annexed at any time by Declarant, and no assurances are made with respect to the boundaries or sequence of annexation of such portions. Annexation of a portion of the Annexable Area shall not necessitate annexation of any other portion of the remainder of the Annexable Area. Declarant has no obligation to annex the Annexable Area, or any portion thereof.

(f) In addition to the provisions for annexation specified in Sections 15.1 and 15.2, the Annexable Area may, from time to time, be expanded to include additional real property, not as yet identified. Such property may be annexed to the Annexable Area upon the Recordation of a written instrument describing such real property, executed by Declarant and all other owners of such property and containing thereon the approval of the FHA and the VA; provided, however, that such written approval shall not be a condition precedent if the FHA or the VA ceases to issue such written approvals; provided further, however, that such expansion of the Annexable Area must also be approved by a majority of the total voting power of the Association.

(g) So long as real property is not annexed property subject to the Declaration, the Annexable Area may be contracted to delete such real property effective upon the Recordation of a written instrument describing such real property, executed by Declarant and all other Owners, if any, of such real property and declaring that such real property shall thereafter be deleted from the Annexable Area. Such real property ay be deleted from the Annexable Area without a vote of the Association or the approval or consent of any other Person, except as provided herein.

12.3De-annexation

The Declarant may delete all or any portion of a Phase of development from coverage of this Declaration and the jurisdiction of the Association, so long as the Declarant is the Owner of all of said Phase or Phases to be deannexed, and provided that:

(a) The Notice of De-Annexation is recorded in the same manner as the applicable Declaration of Annexation was recorded;

(b) The Declarant has not exercised any Association vote with respect to any portion of such Phase;

(c) Assessments have not yet commenced with respect to any portion of such Phase;

(d) No Lot has been sold in said Phase to a member of the general public; and

(e) The Association has not made any expenditures of any obligation respecting any portion of said Phase.

13.1General Rules of Law to Apply

Each Boundary Wall or Party Wall which is built as a part of the original construction of the Project, or subsequently built on the dividing line between Lots, shall constitute a "Boundary Wall," and the Owner of each adjoining Lot shall have joint use, and when not inconsistent with this Article, the rules of law as to the rights and liabilities regarding Boundary and Party Walls shall apply.

13.2Repair/Restoration

Should the Boundary Wall or Party Wall be damaged or destroyed by the fault, negligence, or other act or omission of one of the Owners, then that Owner(s) shall repair or rebuild the wall at his/her/their expense and compensate for any damages to the property of the other Lot Owner(s) or the Association, as the case may be. Should the Boundary Wall or Party Wall at any time be damaged by any cause other than the act or omission of an Owner, then the wall shall be repaired or rebuilt at the joint expense of the Owners sharing the Party Wall, less any funds received as a result of insurance coverage.

13.3Right to Contribution Runs With the Land

The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owner's successors in title.

13.4Disputes

Any dispute relating to a Boundary Wall or a Party Wall shall, at the option of any affected Owner, be subject to resolution before the Architectural Committee, who shall conduct the hearing in accordance with its applicable rules. In the absence of such rules, the American Arbitration Association rules for construction disputes shall be used. Written demand for resolution of the dispute shall be given by the affected Owner to the Architectural Committee with a copy to other affected Owners.

14.1Additional Disclosures, Disclaimers, and Releases of Certain Matters

Without limiting any other provision in this Declaration, by acquiring title to a Unit, or by possession of a Unit, each Owner (for purposes of this Article XV), and all of the Sections thereof, the term "Owner shall include the Owner, and the Owner's Family, guests and tenants), (and by residing within the Community, each Resident) (for purposes of this Article XV, the term "Resident" shall include each Resident, and their guests) shall conclusively de deemed to understand, and to have acknowledged and agreed to, all of the following:

(a) that there is and/or will be electrical power substation(s) located on or nearby the Community, and there are presently and may be further major electrical power system components (high voltage transmission or distribution lines, transformers, etc.) from time to time located within or nearby the Community, which generate certain electric and magnetic fields ("EMF") around them; that, without limiting any other provision in this Declaration, Declarant specifically disclaims any and all representations or warranties, express and implied, with regard to or pertaining to EMF; and that Owner hereby releases Declarant from any and all claims arising from or relating to said EMF, including, but not necessarily limited to, any claims for nuisance or health hazards;

(b) that the Unit and other portions of the Community from time to time are or may be located within or nearby certain airplane flight patterns, and/or subject to significant levels of airplane traffic and noise; that Declarant hereby specifically disclaims any and all representations or warranties, express and implied, with regard to or pertaining to airplane flight patters, and/or airplane noise; and that Owner hereby releases Declarant from any and all claims arising from or relating to airplane flight patters or airplane noise;

(c) that the Unit and other portions of the Community are or may be located adjacent to or nearby major roads, all of which may, but need not necessarily, be constructed, reconstructed, or expanded in the future (all collectively, "roadways), and subject to high levels of traffic, noise, construction, maintenance, repair, dust, and other nuisance from such roadways and vehicles; that Declarant hereby specifically disclaims any and all representations or warranties, express and implied, with regard to or pertaining to roadways and/or noise, dust, and other nuisance therefrom; and that Owner hereby releases Declarant from any and all claims arising therefrom or relating thereto;

(d) that the Unit and other portions of the Community are or may be located adjacent to or nearby major water and drainage channels, major washes and major water detention and/or reservoir facilities (all, collectively, "Water Facilities"), the ownership, use, regulation, operation, maintenance, improvement and repair of which are not within Declarant's control, and over which Declarant has no jurisdiction or authority, and, in connection therewith: (1) the Water Facilities may be an attractive nuisance to children; (2) maintenance and use of the Water Facilities may involve various operations and applications, including (but not necessarily limited to) noisy electric, gasoline or other power driven vehicles and/or equipment used by Water Facilities' maintenance and repair personnel during various times of the day, including without limitation, early morning and/or late evening hours; and (3) the possibility of damage to Improvements and property on the Community, particularly in the event of overflow of water or other substances from or related to the Water Facilities, as the result of non-function, malfunction, or overtaking of the Water Facilities or any other reason; and (4) any or all of the foregoing may cause inconvenience and disturbance to Owner and other persons in or near the Unit and/or Common Elements, and possible injury to person and/or damage to property; and that Owner hereby releases Declarant from any and all claims arising therefrom or relating thereto;

(e) that construction or installation of Improvements by Declarant, the Master Declarant, or other Builders, other Owners, or third parties, or installation or growth of trees and other plants, may impair or eliminate the view, if any, of or from any Unit and/or Common Elements; and that each Owner hereby releases Declarant from any and all claims arising from or relating to said impairment or elimination of view;

(f) that residential subdivision and home construction is an industry inherently subject to variations and imperfections, and items which do not materially affect safety or structural integrity shall be deemed "expected minor flaws" (including, but not limited to: reasonable wear, tear or deterioration; shrinkage, swelling, expansion or settlement; squeaking, pealing, chipping, cracking, or fading; touch-up painting; minor flaws or corrective work; and like items) and not constructional defects;

(g) that (1) the finished construction of the Unit and the Common Elements, while within the standards of the industry in metropolitan Las Vegas, Clark County, Nevada, and while in substantial compliance with the plans and specifications, will be subject to expected minor flaws; and (2) issuance of a Certificate of Occupancy by the relevant governmental authority with jurisdiction shall be deemed conclusive evidence that the relevant improvement has been built within such industry standards;

(h) that indoor air quality of the Unit and/or Common Elements may be affected, in a manner and to a degree found in new construction within industry standards, by particulates or volatiles emanating or evaporating from new carpeting or other building materials, fresh paint or other sealants or finishes, and so on;

(i) that installation and maintenance of a gated Community, and/or any security or traffic control device, operation, or method, shall not create any presumption, or duty whatsoever of Declarant or the Association (or their respective officers, directors, managers, employees, agents, and/or contractors), with regard to security or protection of person or property within or adjacent to the Community; and each Owner, by acceptance of a deed to a Unit, whether or not so stated in the deed, shall be deemed to have agreed to take any and all protective and security measures and precautions which such Owner would have taken if the Community had been located within public areas and not gated; and that gated entrances may restrict or delay entry into the Community bylaw enforcement, fire protection, and/or emergency medical care personnel and vehicles; and each Owner, by acceptance of a deed to a Unit, whether or not so stated in the deed, shall be deemed to have voluntarily assumed the risk of such restricted or delayed entry;

(j) that the Las Vegas Valley contains a number of earthquake faults, and that the Community or portions thereof may be located on or nearby an identified or yet to be identified seismic fault line; and that Declarant specifically disclaims any and all representations or warranties, express or implied, with regard to or pertaining to earthquakes or seismic activities; and that each Owner releases Declarant from any and all claims arising from or relating to earthquakes or seismic activities;

(k) that the Unit and other portions of the Community are or may be nearby major regional underground water, natural gas or other petroleum products transmission pipelines; and that malfunction of or damage to such underground pipelines may result in leakage, spillage, and/or migration of hazardous materials and pollution and/or other potentially dangerous conditions; and that Declarant hereby specifically disclaims any and all representations or warranties, express and implied, with regard to or pertaining to such lines;

(l) that the Unit and other portions of the Community from time to time may, but need not necessarily, experience problems with scorpions, bees, ants, spiders, termites, roaches, rats, pigeons, snakes, or other inset or pest problems (collectively, "pests"); and that Declarant hereby specifically disclaims any and all representations or warranties, express and implied, with regard to or pertaining to any pest, and each Owner must make its own independent determination regarding existence or non-existence of any pest(s) which may be associated with the Unit or other portions of the Community;

(m) that there is a high degree of alkalinity in soils and/or water in the Las Vegas Valley; that such alkalinity tends to produce, by natural chemical reaction, discoloration, leaching and erosion or deterioration of concrete walls and other Improvements ("alkaline effect"); that the Unit and other portions of the Community may be subject to such alkaline effect, which may cause inconvenience, nuisance, and/or damage to property; and that the Governing Documents require Home Owners to not change the established grading and/or drainage, and to not permit any sprinkler or irrigation water to strike upon any wall or similar Improvement;

(n) that the Community is located adjacent or nearby to certain undeveloped areas which may contain various species of wild creatures (including, but not limited to, coyotes and foxes), which may from time to time stray onto the Community, and which may otherwise pose a nuisance or hazard;

(o) that the Community or portions thereof, are or may be located adjacent to or within the vicinity of certain other property zoned to permit the owners of such other property to keep and maintain thereon horses or other "farm" animals, which may give rise to matters such as resultant noise, odors, insects, and other "nuisance"; additionally, certain other property located or nearby the Community may be zoned to permit commercial uses, and/or may be developed for commercial uses; and Declarant makes no other representation or warranty, express or implied, with regard or pertaining to the future development or present or future use of property adjacent to or within the vicinity of the Community;

(p) that portions of Common Elements, and/or other property and landscaping which the Association must maintain, may be irrigated with reclaimed water or treated effluent water ("reclaimed water"); that pipes supplying reclaimed water may pass underground along portions of the Community; that there also may (but need not necessarily) be a pond, located in or near the general vicinity of the Community, supplied all or in part with reclaimed water; and that such reclaimed water may be malodorous and/or a potential hazard to health if ingested, and from time to time may be wind-blown across and upon the Community;

(q) that Purchaser acknowledges having received from Declarant, information regarding the zoning designations and the designations in the master plan requiring land use, adopted pursuant to NRS Chapter 278, for the parcels of land adjoining the Community to the north, south, east and west, together with a copy of the most recent gaming enterprise district map made available for public inspection by the jurisdiction in which the Unit is located, and related disclosures. Declarant makes no further representation, and no warranty (express or implied), with regard to any matters pertaining to adjoining land or uses thereof or to any gaming uses. Each Owner is hereby advised that the master plan and zoning ordinances, and gaming enterprise districts, are subject to change from time to time. If additional or more current information concerning such matters is desired, Owner should contact the appropriate governmental planning department. Each Owner acknowledges and agrees that its decision to purchase a Unit is based solely upon Owner's own investigation, and not upon any information provided by any sales agent;

(r) that Declarant presently plans to develop only those lots which have already been released for construction and sale, and that Declarant has no obligation with respect to future phases, plans, zoning or development of other real property contiguous to or nearby the Unit; (b) proposed or contemplated residential and other developments may have been illustrated in the plot plan or other sales literature in or from Declarant's sales office, and/or Owner may have been advised of the same in discussions with sales personnel; however, notwithstanding such plot plans, sales literature, or discussions or representations by sales personnel or otherwise, Declarant is under no obligation to construct such future or planned developments or units, and the same may not be built in the event that Declarant, for any reason whatsoever, decides not to build same; (c) an Owner is not entitled to rely upon, and in fact has not relied upon, the presumption or belief that the same will be built; and (d) no sales personnel or any other person in any way associated with Declarant has any authority to make any statement contrary to the provisions set forth in the foregoing or any provision of the written purchase agreement;

(s) that model homes are displayed for illustrative purposes only, and such display shall not constitute an agreement or commitment on the part of Declarant to deliver the Unit in conformity with any model home, and any representation or inference to the contrary is hereby expressly disclaimed. None of the decorator items and other items or furnishings (including, but not limited to, decorator paint colors, wallpaper, window treatments, mirrors, upgraded flooring, decorator built-ins, model home furniture, model home landscaping and the like) shown installed or on display in any model home are included for sale to a Purchaser unless an authorized officer of the seller has specifically agreed in a written Addendum to the Purchase Agreement to make specific items a part of the Purchase Agreement;

(t) that residential subdivision and new home construction are subject to and accompanied by substantial levels of noise, dust, construction-related traffic and traffic restrictions, and other construction-related "nuisances". Each Home Owner acknowledges and agrees that it is purchasing a Unit which is within a residential subdivision currently being developed, and that the Owner will experience and accepts substantial levels of construction-related "nuisances" until the subdivision (and other neighboring portions of land being developed) have been completed and sold out, and thereafter, in connection with repairs or any new construction;

(u) that Declarant shall have the right, from time to time, in its sole discretion, to establish and/or adjust sales prices or price levels for homes;

(v) that Declarant shall have the right, from time to time, to design and/or to build different or varying product types or designs for new homes on portions of the Annexable Area and that the Annexable Area may, but need not necessarily, from time to time be annexed hereto;

(w) that Declarant reserves the right, until the Close of Escrow of the last Unit in the Community, to unilaterally control the entry gates(s), and to keep all such entry gate(s) open during such hours established by the Declarant, in its sole discretion, to accommodate Declarant's construction activities, and sales and marketing activities;

(x) that Declarant reserves the right, until the Close of Escrow of the last Unit in the Community to unilaterally enter upon, and/or to control, restrict and/or re-route all pedestrian and vehicular traffic within the Community, in Declarant's sole discretion, to accommodate Declarant's construction activities, and sales and marketing activities; provided that no Unit shall be deprived of access to a dedicated street adjacent to the Community;

(y) that Declarant reserves all other rights, powers, and authority of Declarant set forth in this Declaration, and to the extent not expressly prohibited by NRS Chapter 116, further reserves all other rights, powers, and authority, in Declarant's sole discretion, of a declarant under NRS Chapter 116 (including, but not necessarily limited to, all special declarant's rights referenced in NRS §116.119385);

(z) that Declarant has reserved certain easements, rights and powers, as set forth in this Declaration; and

(aa) that each Owner understands, acknowledges, and agrees that Declarant has reserved certain rights in the Declaration, which may limit certain rights of Purchasers and Owners other than Declarant.

14.2Releases

By acquiring title to any portion of real property in the Community, each Owner, for itself and all Persons claiming under such Owner, shall conclusively be deemed to have understood, acknowledged and agreed to all of the disclosures and disclaimers set forth herein, and to release and hold harmless Declarant and the Association and to release Declarant, the Architectural Committee, the Association, and to the extent applicable, the Master Association, and each of their respective officers, managers, agents, employees, suppliers, and contractors from any and all claims, causes of action, loss, damage or liability (including, but not limited to, any claim for nuisance or health hazard, property damage, bodily injury, and/or death) related to or arising in connection with any disturbance, inconvenience, injury or damage resulting from or pertaining to all and/or any one or more of the conditions, activities, occurrences, or other matters described in the foregoing Section 15.1

15.1Special Declarant's Rights

Any provision herein notwithstanding, Declarant reserves, pursuant to NRS §116.2105(1), the following Special Declarant's rights, on the terms and conditions and subject to the expiration deadlines, if any set forth below:

(a) Right to Complete Improvement and Construction Easement. Declarant hereby reserves the right (but not the obligation), for a period terminating on the seventh (7th) anniversary of the Recordation of this Declaration, to complete the construction of improvements on the Properties, and an easement over the Properties for the purpose of doing so; provided, however, that if Declarant still owns any property in the Properties on such seventh (7th) anniversary date, such rights and reservations shall continue for one additional successive period of seven (7) years. Any damage caused to a Lot or the Common Area by Declarant or its agents in the use or exercise of such right and/or easement shall be repaired by and at the expense of Declarant.

(b) Exercise of Development Rights. Declarant reserves the right from time to time to annex all or any portion(s) of the Annexable Area to the Properties, pursuant to the provision of Article XII hereof, for so long as Declarant owns any portion of the Annexable Area. No assurances are made by Declarant with regard to the boundaries of those portions of the Properties which may be annexed or the order in which in which such portions may be annexed. Declarant also reserves the right to withdraw real property from the Properties, pursuant to the provisions of Article XII hereof.

(c) Offices, Model Homes and Promotional Signs. Declarant reserves the right to maintain offices for sales and management, models, signs, flags and/or flagpoles on the Common Area and in any Lot owned or leased by Declarant, for so long as Declarant owns or leases any Lot. Declarant shall have access to all Common Area (and sufficient parking for Declarant's guests and business invitees) for Declarant's sales activities. Declarant's rights under this Section 15.1 shall terminate not later than the end of the period (as may be extended) set for in Section 15.1(a) above.

(d) Appointment and Removal of Directors. Declarant reserves the right to appoint and remove a majority of the Board, as set forth in Article III above, for the time period set forth herein.

15.2Exemption of Declarant

Notwithstanding anything to the contrary in this Declaration, the following shall apply:

(a) Nothing in this Declaration shall limit, and no Owner or the Association shall do anything to interfere with, the right of Declarant to complete excavation and grading and the construction of Improvements to and on any portion of the Properties, or to alter the foregoing and Declarant's construction plans and designs, or to construct such additional Improvements as Declarant deems advisable in the course of development of the Properties for so long as any Lot owned by Declarant remains unsold.

(b) This Declaration shall in no way limit the right of Declarant to grant additional licenses, easements, reservations and rights-of-way to itself, to governmental or public authorities (including without limitation public utilities companies), or to others, as from time to time may be reasonably necessary to the proper development and disposal of Lots provided, however, that if FHA or VA approval is sought by Declarant, then the FHA and/or the VA shall have the right to approve any such grants as provided herein.

(c) Prospective purchasers and declarant shall have the right to use all and any portion of the Common Area for access to the sales facilities of declarant and for placement of Declarant's signs.

(d) Declarant may use any structures owned or leased by Declarant, as model home complexes or real estate sales or management offices, subject to the time limitations set forth herein, after which time, Declarant shall restore the Improvement to the condition necessary for the issuance of a final certificate of occupancy by the appropriate governmental entity.

(e) Declarant shall maintain the right (but not the obligation) to enforce the Association's maintenance and repair obligations under this Declaration.

(f) All or any portion of the rights of Declarant in this Declaration may be assigned by Declarant to any successor in interest, by an express and written Recorded assignment which specifies the rights of Declarant so assigned.

(g) The prior written approval of Declarant (which shall not be unreasonable withheld), as developer of the Properties, will be required before any amendment to the Declaration affecting Declarant's rights or interests (including, without limitation this Article XV) can be effective.

(h) The rights and reservations of Declarant referred to herein, if not earlier terminated by Declarant or pursuant to the Declaration, shall terminate on the date set forth in Section 15.1(a) above.

IN WITNESS WHEREOF, the undersigned, being Declarant herein, has executed this instrument the day and year first above written.

Ryland Homes Nevada LLC, a Delaware limited liability company. By: [signature] Paul Kenner

STATE OF NEVADA ) ss. COUNTY OF CLARK )

On this 21 day of February, 2006, personally appeared before me, a Notary Public, Paul Kenner, the Vice President, Land Acquisitions of Ryland Homes Nevada, LLC, a Delaware limited liability company, known to me to be the person who executed the within DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS OF INDIGO HOMEOWNERS' ASSOCIATION and who acknowledged to me that he executed the same for the uses and purposes therein mentioned.

[signature] NOTARY PUBLIC

[Notary seal: ATHENA R. ALLEN, Notary Public State of Nevada, No. 00-63341-1, My appt. exp. May 17, 2008]