RESTATED AS AMENDED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

OF

PINE LAKES RANCH



Restated March 2018, Setting Forth the Original Declaration of September 25, 1974,

as Amended October 1, 1975; August 17, 1976; February 27, 1992; July 13, 1998;

January 16, 2004; December 28, 2009; and April 28, 2010.



This declaration is made this 25th day of September, 1974, by Western-Daagco, a co-partnership between Daagco Development, Inc., and Western National Corporation, both Idaho corporations, hereinafter referred to as Grantor, and Arthur A. Hall and Ethel M. Hall, husband and wife, of

Valley County, Idaho.

RECITALS

A. Arthur A. Hall and Ethel M. Hall, husband and wife, (hereinafter referred to as Halls), are owners and said Western-Daagco, a co-partnership, is purchasing from the owners, the real property described in Exhibit “A” hereto attached and by this reference made a part hereof, which together with Lot 4, Section 1, T. 14 N., R. 3E., B.M., (hereby made a part of Tract I herein described) constitutes Pine Lakes Ranch as herein described.

B. All of said premises now constitute a cattle ranching operation on the near Lake Cascade in Valley County, Idaho, and it is the intent and desire of Grantor to maintain the atmosphere and conduct of a working cattle ranch, as modified, altered and restricted as herein set forth, for the enjoyment and use of the owners as hereinafter set forth.

DECLARATION

NOW, THEREFORE, WESTERN-DAAGCO and ARTHUR A. HALL and ETHEL M. HALL, husband and wife, hereby declare that said premises are and shall be held, conveyed, encumbered, leased and used subject to the following uniform covenants, conditions, restrictions and equitable servitudes in furtherance of a plan for the development, improvement and sale thereof, and to enhance the value, desirability and attractiveness of such property. The restrictions set forth herein shall run with the real property herein described; shall be binding upon all persons having or acquiring any interest in such real property or any part thereof; shall inure to the benefit of every portion of such real property and any interest therein shall inure to the benefit of and be biding upon Grantor and Halls, their successors in interest, each Owner and his respective successors in interest, any may be enforced by Grantor, Halls, by an Owner or his successors in interest, or by the Association hereinafter named.

These Restrictions shall not be construed so as to unreasonably interfere with or prevent normal construction activities during the construction of improvements by any Owner (including Grantor) upon property owned within Pine Lakes Ranch, provided that when completed such improvements will in all ways conform to these Restrictions. Specifically, no such construction activities shall be deemed to constitute a nuisance or violation of these Restrictions by reason of noise, dust, presence of vehicles or construction machinery, erection of temporary structures, posting of signs or similar activities, provided that such construction is pursued to completion with reasonable diligence and conforms to usual construction practices in the area. In the event of any dispute, a temporary waiver of the applicable provision, including but not limited to any provision prohibiting temporary structures, may be granted by the Architectural Committee, provided that such waiver shall be only for the reasonable period of such construction. Such waiver may, but need not, be recorded or in recordable form.





Further, the Pine Lakes Ranch Restrictions shall not be construed as to prevent or limit Grantor’s right to maintain model homes, construction, sales or leasing offices or similar facilities on any property in Pine Lakes Ranch owned by Grantor or on property the Owner of which consents to such use, nor Grantor’s right to post signs incidental to construction and sales.

ARTICLE I

DEFINITIONS

Unless the context otherwise specifies or requires, the following words and phrases when used in the Pine Lakes Ranch Restrictions shall have the meaning hereinafter specified.

ARCHITECTUAL COMMITTEE shall mean the committee created pursuant to Article VI hereof.

ARTICLES shall mean the Articles of Incorporation of the Pine Lakes Ranch Association, Inc. (hereinafter referred to as the Home Owners Association) which shall be filed in the office of the Secretary of State of the State of Idaho, a true copy of which is attached hereto, marked Exhibit “I” and incorporated herein by this reference.

ASSESSMENTS shall mean assessments of the Home Owners Association and includes both regular and special assessments.

ASSOCIATION shall mean the Pine Lakes Ranch Home Owners Association, Inc., the non-profit Idaho corporation described in Article IV hereof, its successors and assigns.

ASSOCIATION PROPERTY shall mean all real and personal property now or hereafter owned by or leased to the Home Owners Association.

BLOCK shall mean a portion of the Pine Lakes Ranch designated as a Block on any recorded subdivision plat thereof.

BOARD shall mean the Board of Directors of the Home Owners Association.

BY-LAWS shall mean the By-Laws of the Home Owners Association which shall be adopted by the Board substantially in the form of Exhibit “II” as attached hereto and incorporated herein by this reference, as such By-Laws may be amended from time to time.

CONDOMINIUM shall mean a Condominium as defined in Section 55-101B of the Idaho Code, i.e., an estate consisting of (i) an undivided interest in common in real estate, in an interest or interests in real property, or in any combination thereof, together with (ii) a separate interest in real property, in an interest or interests in real property, or in any combination thereof that Grantor may initiate on a Block.

CONDOMINIUM PROJECT shall mean no more than two condominium projects as defined in Section 55-1503 (b) of the Condominium Act of the State of Idaho, i.e., the entirety of an area divided or to be divided into condominiums, which shall include no more than two Blocks as therein defined.

DECLARATION shall mean this instrument as it may be amended.

EASEMENT LAND shall mean easement land designated and described as Tract 2 on Exhibit “A” hereto attached.

EXCLUSIVE LANDS shall mean the lands not to exceed one acre, that may be placed under fence by Owner for his exclusive use and shall include the Homesite.

GRANTOR shall mean Western-Daagco.

HOMESITE shall mean no more than one acre of land used for residential construction in each Block.

IMPROVEMENT shall mean all structure and appurtenances thereto of every type and kind, including but not limited to buildings, outbuildings, docks, sun decks, swimming pools, garages, carports, roads, driveways, parking areas, fences, screening walls, retaining walls, stairs, decks, landscaping, hedges, windbreaks, plantings, planted trees and shrubs, poles, signs, exterior air conditioning and water softener fixtures or equipment.

MANAGER shall mean the person, firm, or corporation employed by the Home Owners Association pursuant to and limited by Article IV, Section 4.05 D and delegated the duties, powers or functions of the Association pursuant to said Section.

MEMBER shall mean any person who is a member of the Association pursuant to Section 4.02 hereof.

NOTICE OF HEARING shall mean thirty (30) days’ written notice and public hearing before the Board at which the Owner concerned shall have an opportunity to be heard in person or by counsel at Owner’s expense.

OPEN LAND shall mean all lands in Tracts 1 and 2 not under fence as Exclusive Lands, excluding also main and/or secondary access road rights of way.

OWNER shall mean (1) the person or persons or other legal entity or entities, including Grantor, holding an aggregate fee simple interest in a tract or, as the case may be, (2) the purchaser of a tract under an executory contract of sale, or (3) a condominium project. For the purpose of Article IV only, unless the context otherwise requires, Owner shall also include the family, invitees, licensees and lessees of any Owner and the aggregate of all Owners in a condominium project entitled to a vote therein.

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

PINE LAKES RANCH shall mean all the certain real property identified and described in Exhibit “A” to this Declaration, as the same is now and as it may from time to time be developed and improved.

RANCH shall mean all of Tract No. 1 and Tract No. 2, except Exclusive Lands, two condominium projects and lakes.

RANCHING OPERATION shall mean use or leasing out of open lands for cattle ranching operations as contemplated herein

RECORD, RECORDED, AND RECORDATION shall mean, with respect to any document, the recordation of such document in the office of the Country Recorder of the County of Valley, State of Idaho (which may also be referred to herein as file or filed).

TAX PARCEL shall mean any portion of a Block which has been assigned a tax parcel number by the appropriate taxing authority regardless of whether such Block has been split or further subdivided.

THE PINE LAKES RANCH MAINTENANCE FUND shall mean the fund created after the receipts and disbursements of the Association, pursuant to Section 7.01 hereof.

ARTICLE II

DEVELOPMENT AND BASIC POLICY

Section 2.01 INTENT AND PURPOSE. That area described as Tract 1 shall be sold in Blocks with the Owners’ rights thereon and thereto restricted as herein provided[P= in order that the least changes in such lands shall be made and a cattle ranching operation may be maintained.

Section 2.02 FENCING. In Pine Lakes Ranch not to exceed one acre, including the homesite, may be placed under one perimeter fence by the Owner for the exclusive use of Owner, which is defined herein as Exclusive lands, except that when a block therein is divided, not to exceed one acre in each half. Including the homesite, may be placed under one perimeter fence, for the exclusive use of the owner.

In pine Lakes Ranch addition No. 2, and in proposed Pine Lakes Ranch Addition No. 1, not to exceed one half acre including the homesite may be placed under one perimeter fence by the Owner for the exclusive use of the owner, except that when a block therein is divided, not to exceed one half acre in each half thereof, including the homesite, may be placed under one perimeter fence for the exclusive use of the Owner.







Section 2.03 CATTLE RANCHING OPERATION. All open land, shall be operated or leased out by the Association as cattle ranch and each Owner (except a condominium project), may run cattle thereon in proportion to his ownership, paying for such privilege the same amount on the same basis that the Association may lease to third parties. Owners shall have the first right to run cattle at the going rate.

Section 2.04 PROCEEDS OF RANCHING OPERATIONS. All proceeds from such cattle ranching operation shall be paid to the Association for the uses and purposes set forth in Article VII hereof.

Section 2.05 RIGHTS TO EASEMENT LAND. All owners, including condominium owners, their tenants, guests and family members shall have the right to use and enjoy easement lands.

Section 2.06 CONDOMIMIUM OWNERS. The condominium project and condominium owners shall have no right to run cattle.

Section 2.07 PRIVATE LAKES AND FISHING RIGHTS. All owners, including condominium owners shall have equal rights to the use of two private lakes to be constructed by Grantor and all owners and condominium owners shall have equal rights to the use and enjoyment of a 35 foot wide easement around the high water mark of both of such lakes.

ARTICLE III

GENERAL RESTRICTIONS

All real property within Pine Lakes Ranch shall be held, used and enjoyed subject to the following limitations and restrictions:

Section 3.01 SUBDIVIDING. No Block (exclusive of the condominium project) may be further subdivided, nor may any easement or other interest therein less than the whole be conveyed by the Owner thereof (excluding Grantor), save and except that each Block may be divided into parcels of equal size (as nearly as possible), and no other or further subdivision of such Blocks shall be allowed, provided, however, that nothing herein shall be deemed to prevent or require the approval of the Architectural Committee for (1) the sale of Condominiums in any Condominium Project in compliance with the Condominium Property Act of Idaho, or (2) transfer or sale of any tract or condominium to more than one person to be held by them as tenants in common, joint tenants, tenants by the entirety or as community property.

Section 3.02 SIGNS. No sign of any kind shall be displayed to the public view without the approval of the Architectural Committee, except such signs as may be used by Grantor in connection with the development of the Pine Lakes Ranch and sale of Blocks and condominiums.

Section 3.03 ANIMALS. Each owner may maintain only on his exclusive lands, up to: (a) Three large animals, either cattle or horses per acre, or

(b) Nine sheep per acre

(c) And two small animals per acre (dogs, cats or other household pets)

(e) Up to 25 chickens, pigeons or other poultry per acre

(f) No hogs or other animals likely to cause undesirable noise, odors, or other noxious conditions shall be permitted.

Section 3.04 NUISANCES. No rubbish or debris of any kind shall be placed or permitted to accumulate upon any property within Pine Lakes Ranch and no odors shall be permitted to arise therefrom so as to render any such property or any portion thereof unsanitary, unsightly, offensive or detrimental to any other property in the vicinity thereof or to its occupants. No noise or other nuisance shall be permitted to exist or operate on any such property so as to be offensive or detrimental to any other property in the vicinity thereof or to its occupants. Without limiting the generality of any of the foregoing provisions, no exterior speakers, horns, whistles, bells or other sound devices (other than security devices used exclusively for security purposes) shall be located, used or placed on any such property without the prior written approval of the Board.

Section 3.05 RESIDENTIAL USE; RENTALS. No residence shall be used for any purpose other than single-family residential purposes. No gainful occupation, profession, trade or other non-residential use shall be conducted on any tract or condominium project, provided, however, that nothing in this Declaration shall prevent the rental of exclusive lands and condominiums by the Owner thereof for residential purposes, on a short or long term basis but in no event less than 30 days, subject to all the provisions of the Pine Lakes Ranch Restrictions, which shall be deemed a Residential Use.

Provided, however, that each condominium association may maintain offices and facilities for maintenance and administrative personnel and provided further, that rentals of condominium units may be for any term.

Section 3.06 IMPROVEMENTS. No homesite shall be improved except by a dwelling or residence structure (hereinafter called “residence”) designed to accommodate no more than a single family and its servants and occasional guests, plus a garage, fencing and such other improvements as are necessary or customarily incident to a single-family residence, with not less than 900 sq. feet of living space on the main floor level, exclusive of garage and porches. Covered storage or garages shall be provided for all automobiles regularly or customarily parked thereat.

Section 3.07 REPAIR OF BUILDINGS. No improvement upon any property within the Pine Lakes Ranch shall be permitted to fall into disrepair, and each such improvement shall at all times be kept in good condition and repair and adequately painted or otherwise finished by the Owner and should the Owner fail herein, after notice as herein provided, the Association shall have the authority to make needed maintenance or repairs or remove damages, unusable or unlivable structures and bill the Owner for the cost thereof plus 25% add-on for management and overhead.

Section 3.08 IMPROVEMENTS AND ALTERATIONS. There shall be no excavation or construction or alteration which in any way alters the exterior appearance of any improvement within the Pine Lakes Ranch (other than repairs or rebuilding pursuant to Section 3.07 hereof) without the prior approval of the Architectural Committee pursuant to Article VI hereof.

Section 3.09 VIOLATION OF THE PINE LAKES RANCH RULES. There shall be no violation of the Pine Lakes Ranch Rules once adopted by the Board after notice and hearing. If any Owner, his family or any licensee, lessee or invitee violates the Pine Lakes Ranch Rules, the Board may impose a special assessment upon such person of not more than One Hundred ($100.00) Dollars a day for each violation and /or may suspend the right of such person to use the Association Properties, under such conditions as the Board may specify, for a period not to exceed ninety (90) days for each violation. Before involving any such assessment or suspension, the Board shall give such person notice of such action and a ten (10) day period to respond to such action in writing. Any assessment imposed hereunder which remains unpaid for a period of ten (10) days or more shall become a lien upon the Owner’s Tax Parcel or condominium upon the recording of a lien hereunder. Each day that a violation continues to exist after notice and time to respond shall constitute a separate violation for which the above penalties may be imposed.

Section 3.10 EXEMPTION OF GRANTOR. Nothing in Pine Lakes Ranch Restrictions shall limit the right of Grantor to complete excavation, grading and construction of improvements to any property within Pine Lakes Ranch owned by Grantor, or to alter the foregoing or to construct such additional improvements as Grantor deems advisable in the course of development of Pine Lakes Ranch so long as any Block of condominium in Pine Lakes Ranch remains unsold, or to use any structure in Pine Lakes Ranch as a model home or real estate sales or leasing office. The rights of Grantor hereunder and elsewhere in these Restrictions may be assigned by Grantor.





Section 3.11 NO HAZARDOUS ACTIVITIES. No activities shall be conducted on any property and no improvements constructed on any property which are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms shall be discharged upon any property except in portions of recreational areas designated for skeet shooting or rifle or pistol range purposes by Grantor, or by the Association as to Association Property; and no open fires shall be lighted or permitted on any property except in a contained barbecue unit while attended and in use for cooking purposes or within a safe and well-designed interior fireplace or except such campfires or picnic fires in portions of Easement Lands and Lake areas designated for such use by Grantor, or by the Association as to Association Property, or except such controlled and attended fires required for clearing or maintenance of land and previously approved in writing by the Board.

Section 3.12 VEGETATION. No trees or other natural vegetation, except noxious weeds, shall be cut, removed, poisoned or otherwise damaged or molested without prior written permission of the Home Owners Association.

Section 3.13 UNSIGHTLY ARTICLES. No unsightly articles shall be permitted to remain so as to be visible from exclusive lands, including without limiting the generality of the foregoing, trailers, mobile homes, trucks, other than pickups, boats, tractors, vehicles other than automobiles, campers not on a truck, snowmobiles, snow removal equipment and garden or maintenance equipment shall be kept at all times, except when in actual use, in an enclosed structure or screened from view; refuse, garbage and trash shall be kept at all times, in a covered, noiseless container and any such container shall be kept within an enclosed structure or appropriately screened from view; service areas, storage piles, compost piles and facilities for hanging, drying or airing, clothing or household fabrics shall be appropriately screened from view; and no lumber, grass, shrub or tree clippings or plant waste, metals, bulk materials or scrap or refuse or trash shall be kept, stored, or allowed to accumulate on any property except within an enclosed structure or appropriately screened from view.

Section 3.14 NO TEMPORARY STRUCTURES. No tent or shack or other temporary building, improvement or structure shall be placed upon any property.

Section 3.15 NO MINING AND DRILLING. No property shall be used for the purpose of mining, quarrying, drilling, boring or exploring for or removing water, oil, gas or other hydrocarbons, minerals, rocks, stones, gravel or earth, except that Grantor or the Association may, by appropriate permit, grant license or easement, allow the drilling of wells for the extraction of water.

Section 3.16 VEHICLES. The use of all vehicles except those used in actual ranching operations, shall be confined to main access roads and exclusive lands and shall be subject to the Pine Land Ranch Rules, which may expand, prohibit or limit the use thereof within the Pine Lakes Ranch, provide parking regulations or adopt other rules regulating the same and provided specifically, that no vehicle parking on road rights of way shall be permitted.

Section 3.17 BUILDING CONSTRUCTION. No construction of any kind shall be commenced prior to receiving written permission therefor from the Architectural Committee, including residential construction, exterior remodeling, fencing and landscaping.

Section 3.18 BUILDING MATERIALS. All exterior walls shall be constructed of wood or wood materials, rock or masonry products, or other products having the appearance and quality of wood, rock, or masonry. No metal or vinyl siding shall be allowed. Any and all changes, additions or alterations to the exterior walls shall be approved in writing by the Architectural Committee and be consistent with the requirements of Section 6.08.







Section 3.19 FENCES. All fences shall be constructed of wood or wood materials, rock or masonry products, or other products having the appearance and quality of wood, rock or masonry. All fences shall be approved by the Architectural Committee and be consistent with the requirements of Section 6.08

Section 3.20 SET BACK LINES. All homesites shall be located within such Blocks, unless otherwise approved by the Architectural Committee, as follows:

Set back at least forty (40) feet from right of way boundaries and interior Block lines.

Section 3.21 HARASSMENT OF GAME OR STOCK. Any animal permitted to injure or harass game animals, game birds or livestock shall be removed from the premises permanently and are subject to destruction as provided by law.

ARTICLE IV

THE PINE LAKES RANCH HOME OWNERS ASSOCIATION

A. ASSOCIATION. The Pine Lakes Ranch Home Owners Association, Inc.,shall be a non-profit Idaho Corporation charged with the duties and invested with the powers prescribed by law and set forth in the Articles, By-Laws, and this Declaration. Neither the Articles nor By-Laws shall, for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration.

Section 4.02 MEMBERSHIP.

A. Qualifications. Each owner (including Grantor) of a Tax Parcel, and each condominium association (herein referred to as condominium project), by virtue of being such an owner and for so long as he is such an owner, shall be deemed a member of the Association.

B. Transfer of Membership. The Association membership of each owner (including Grantor) shall be appurtenant to said Tax Parcel or condominium project and shall not be transferred, pledged or alienated in any way except upon the transfer of title to said Tax Parcel or condominium project, and then only to the transferee of title to said Tax Parcel or condominium project. Any attempt to make a prohibited transfer shall be void. Any transfer of title to said Tax Parcel or condominium project shall operate automatically to transfer said membership to the new owner thereof.

Section 4.03 VOTING.

A. Members Members shall be an Owner and each Owner shall have one (1) vote for each separate Tax Parcel owned in fee simple regardless of the size of the Tax Parcel. The Owner of each separate Tax Parcel may, by notice to the Association, designate a person (who need not be an Owner) to exercise the vote for such Owner. Said designation shall be revocable at any time by notice to the Association by the Owner. Such powers of designation and revocation may be exercised by the guardian of an Owner's estate by his executor or administrator where the latter's interest in said property is subject to administration in his estate.

B. Joint Owner Disputes. The vote for each such Tax Parcel shall, if at all, be cast as a unit, and fractional votes shall not be allowed. In the event that joint owners are unable to agree among themselves as to how their vote or votes shall be cast, they shall lose their right to vote on the matter in question. If any owner casts a vote representing a certain Tax Parcel, it will thereafter be conclusively presumed for all purposes that he or they were acting with the authority and consent of all other owners of the same Tax Parcel.

C. Meetings of Owners. There shall be a meeting of the owners on the 1st day of November of each year at Cascade, Idaho, or at such other reasonable place or time (not more than thirty (30) days before or after such date) as may be designated by notice of the Board given to the Owners not less than ten (10) days nor more than sixty (60) days prior to the date fixed for said meeting. A special meeting of the owners may be called at any reasonable time and place by notice of the Board or by the owners having one-fifth (1/5) of the total votes and delivered to all other owners not less than ten (10) days nor more than thirty-five (35) days prior to the date fixed for said meeting. The presence at any meeting in person or by proxy of the owners entitled to vote at least a majority of the total votes shall constitute a quorum. If any meeting cannot be held because a quorum is not present, the owners present, either in person or by proxy, may, as otherwise provided by law, adjourn the meeting to a time not less than forty-eight (48) hours nor more than thirty (30) days from the time the original meeting was called, at which meeting the quorum requirement shall be the owners entitled to vote at least twenty-five percent (25%) of the total votes. The president of the Association (or an assistant secretary thereof in his absence) shall act as secretary of all such meetings. Except as otherwise provided herein, any action may be taken at any meeting of the owners upon the affirmative vote of the owners having majority of the total votes present at such meeting in person or by proxy; provided, however, that the members of the Board may be elected by cumulative voting as provided in Section 4.03 D. At each annual meeting, the Board shall present a written statement of The Fund, itemizing receipts and disbursements for the preceding calendar year and the allocation thereof to each owner. Within ten (10) days after the date set for each annual meeting, the assessment statement shall be delivered to the owners not present at said meeting.

D. Cumulative Voting. In any election of the members of the Board, every owner (including Grantor) entitled to vote at such an election shall have the right to cumulate his votes and give one candidate, or divide among any number of the candidates, a number of votes equal to the number of votes to which that owner is entitled in voting upon other matters multiplied by the number of directors to be elected. The candidates receiving the highest number of votes, up to the number of the Board members to be elected, shall be deemed elected.

E. Transfer of Voting Right. The right to vote may not be severed or separated from the ownership of the Tax Parcel to which it is appurtenant, except that any owner may give a revocable proxy, or may assign his right to vote to a lessee or beneficiary of the Tax Parcel for the term of the lease or Deed of Trust, and any sale, transfer or conveyance of such Tax Parcel to a new owner or owners shall operate automatically to transfer the appurtenant vote to the new owner, subject to any assignment of the right to vote to a lessee or beneficiary as provided herein.



Section 4.04 DUTIES OF THE ASSOCIATION. The Association shall have the obligation, subject to and in accordance with these Restrictions, to perform each of the following duties for the benefit of the owners of each tract.

A. Association Property. To accept and exercise jurisdiction over all property, real and personal, conveyed free and clear of all liens, and encumbrances to the Association by Grantor, including (1) Easement Lands, (2) easements for operation and maintenance purposes over tracts, and (3) access road easements and other easements for the benefit of Association members.

B. Title to Property Upon Dissolution. To convey, upon dissolution of the Association, the assets of the Association to the appropriate public agency or agencies to be used for purposes similar to those for which the Association was created, or to a non-profit corporation, association, trust or other organization and operated for such similar purposes.

C. Operation of the Ranch. To operate and maintain, or provide for the operation and maintenance of (1) the Ranch (2) roadways and easements (3) Private lakes; and to keep all improvements of whatever kind and for whatever purpose from time to time located thereon in good order and repair.

D Payment of Taxes and Assessments. To pay all real property taxes and assessments levied upon any property conveyed, leased or otherwise transferred to the Association and to pay Center Irrigation District water assessments. Such taxes and assessments may be contested or compromised by the Association; provided, however, that they are paid or a bond insuring the payment is posted prior to the sale or other disposition of any property to satisfy the payment of such taxes.

E. Insurance. To obtain and maintain in force the following policies of insurance:

(1) Fire and extended coverage insurance on all improvements under the control of the Association, the amount of such insurance to be not less full replacement value. Such insurance shall insure the Association and its mortgagees, as their interests may appear. As to each such policy, which will not be voided or impaired thereby, the Association hereby waives and releases all claims against the Board, the Manager, the Grantor and agents and employees of each of the foregoing, with respect to any loss covered by such insurance, whether or not caused by negligence of or breach of any agreement by said persons, but only to the extent that insurance proceeds are received in compensation for such loss.

(2) Bodily injury liability insurance, with limits of not less than $100,000 per person and $300,000 per occurrence, and property damage liability insurance with a deductible of not more than $1500 and a limit of not less than $50,000 per occurrence, insuring against liability for bodily injury, death and property damage arising form the activities of the Association or with respect to property under it’s jurisdiction, including, if obtainable, a cross-liability endorsement insuring each insured against liability to each other insured.

(3) Workmen’s compensation insurance to the extent necessary to comply with any applicable laws.

(4) A fidelity bond in the penal amount of Twenty-five Thousand Dollars

($25,000.00) or more, naming the members of the Board and the Manager, and such other persons as may be designated by the Board, as principals and the Association as obligee.

(5) Such other insurance, including indemnity and other bonds as the Board shall deem necessary or expedient to carry out the Association functions as set forth in these resolutions, the Articles and the By-laws.

The liability insurance referred to above shall name as separately protected insureds Grantor, the Association, the Board, the Architectural Committee, and their representatives, members and employees, with respect to any liability arising out of the maintenance or use of any Association Property. Every policy of insurance obtained by the Association shall contain an express waiver, if available, of any and all rights of subrogation against Grantor, the Board, the Architectural Committee, and their representatives, members and employees.

Said fire and liability insurance policies may be blanket policies covering the Association properties and property of Grantor, in which case the Association and Grantor shall each pay their proportionate shares of the premium, with respect to insurance proceeds from the Association Property only, the Association shall be deemed trustee of the interests of all owners in any insurance proceeds paid to it under any such policies, and shall have full power to receive and to receipt for their interests in such proceeds and to deal therewith.

F. Rule Making. To make, establish, promulgate, amend and repeal the Rules as provided in Section 4.06 hereof.

G. Architectural Committee. To appoint and remove members of the Achitectural Committee as provided in Section 6.01 hereof, and to insure that at all reasonable times there is available a duly constituted and appointed Architectural Committee.

H. Enforcement of Restrictions and Rules. To perform such other acts, whether or not expressly authorized by the Pine Lakes Ranch Restrictions, as may be reasonably necessary to enforce any of the provisions of the Pine Lakes Ranch Restrictions and the Architectural Committee Rules.

I. Other To carry out the duties of the Association set forth in the Pine Lakes Ranch Restrictions, the Articles and the By-Laws.

J. Contracts. Neither Grantor nor any agent of Grantor shall enter into any contract which would bind the Association or the Board thereof for a period in excess of one (1) years, unless reasonable cancellation provisions are included in such contracts.

K. Audit. The members may at any annual meeting provide for an annual independent audit of the accounts of the Association and for delivery of a copy of such audit to each owner within thirty (30) days after completion thereof. Any owner may at any time and at his own expense cause an audit or inspection to be made of the books and records of the Association by a certified public accountant; provided that such audit or inspection is made during normal working hours and without unnecessary interference with the operation of the Association.

Section 4. 05 POWERS AND AUTHORITY OF THE ASSOCIATION. The

Association shall have all of the powers of an Idaho non-profit corporation, subject only to such limitations upon the exercise of such powers as are expressly set forth in the Articles, the By-Laws or the Pine Lakes Ranch Restrictions. It shall have the power to do any and all lawful things which may be authorized, required or permitted to be done by the Association under and by virtue of the Restrictions, the Articles, and the By-Laws, and to do and perform any and all acts which may be necessary or proper for or incidental to the exercise of any of the express powers of the Association. Without in any way limiting the generality of any of the foregoing provisions, the Association shall have the power and authority at any time:

A. Assessments. To levy assessments on the owners of Tax Parcels and condominiums within the Pine Lakes Ranch, and to enforce payment of such assessments in accordance with the provisions of Articles III and VII hereof.

B. Right of Entry and Enforcement. After twenty-four (24) hours written notice, to enter, without being liable to any owner upon any Block for the purpose of enforcing by peaceful means the Pine Lakes Ranch Restrictions, or for the purpose of maintaining or repairing any such area if for any reason whatsoever the owner thereof fails to maintain or repair any such area as required by said Restrictions. The Association shall also have the power and authority from time to time in it’s own name on it’s own behalf or on behalf of any owner or owners who consent thereto, to commence and maintain actions and suits to restrain and enjoin any breach or threatened breach of the Pine Lakes Ranch Restrictions and to enforce, by mandatory injunctions or otherwise all of the provisions of said Restrictions.

C. Repair and Maintenance of Association Property. To paint, maintain, provide snow removal service for, and repair the Association Property and all improvements thereto.

D. Manager. To retain and pay for the services of a person or firm to manage the Association Properties (the “Manager”) to the extent deemed advisable by the Board, as well as such other personnel as the Board shall determine shall be necessary or proper for the operation of the Association Properties or the conduct of the business of the Association, whether such personnel are employed directly by the Association or are furnished by the Manager. The Association and the Board may delegate any of their duties, powers or functions to the Manager, provided that any such delegation shall be revocable upon notice by the Association or Board. The owners release the members of the Board from liability for any omission or improper exercise by the Manager of any such duty, power or function as delegated.

E. Legal and Accounting Services. To retain and pay for legal and accounting services necessary or proper in the operation of the ranch, or other areas under its control, enforcement of the Pine Lakes Ranch Restrictions or in performing any of the other duties or rights of the Association.

F. Property Services. To maintain, (including snow removal) and repair beach improvements, lakes and roads, or other areas of the Pine Lakes Ranch not maintained by governmental entities, to the extent deemed advisable by the Board, and at the Board’s election.

G. Recreational Facilities. To maintain and repair, to the extent deemed advisable by the Board, all boating facilities, including beaches and docks and all other improvements relating to such facilities, tennis facilities, swimming pool, bicycle, horse, hiking trails, or other recreational or similar Association Property.

H. Other Services and Properties. To obtain or pay for, as the case may be, any other property, services, taxes or assessments which the Association or the Board is required to secure or pay for pursuant to the terms of these Restrictions or the By-Laws.

Section 4.06 RULES. The Board may adopt such rules as it deems proper for the use and occupancy of the Association Property. A copy of said Rules, as they may from time to time be adopted, amended or repealed, may, but need not, be mailed or otherwise delivered to each owner, or recorded. Upon such mailing, delivery or recordation, said Rules shall have the same force and effect as if they were set forth in and were a part of the Pine Lakes Ranch Restrictions. In addition, as to any owner having actual knowledge of any given Rules, such Rules shall have the same full force and effect and may be enforced against such owner.

Section 4.07 LIABILITY OF BOARD MEMBERS AND MANAGER. Neither

any member of the Board nor the Manager shall be personally liable to any owner, or to any other party, for any damage, loss or prejudice suffered or claimed on account of any act or omission of the Association, the Board, the Manager or any other representatives or employees of the Association, or the Architectural Committee, provided that such Board member, or the Manager has, upon the basis of such information as may be possessed by him, acted in good faith.



ARTICLE V

ASSOCIATION PROPERTIES

Section 5.01 Each owner of a Block, condominium unit, his family, licensees, invitees and lessees, or contract purchasers who reside on the property, shall be entitled to use the Association Properties subject to:

A. The provisions of the Articles of Incorporation, By-Laws, and the Pine Lakes Ranch Restrictions. Each owner agrees that in using the Association Properties he will comply with the provisions of such Articles, By-Laws and the Pine Lakes Ranch Restrictions, including the Pine Lakes Ranch Rules.

B. The right of the Association to suspend the rights to use of the Association Property by an owner for any period during which any assessment against him remains unpaid; and, after Notice and Hearing by the Board, for a period not to exceed thirty (30) days for any infraction of the Pine Lakes Ranch Restrictions.

Section 5.02 DAMAGES. Each owner shall be liable to the Association for any damage to Association Property which may be sustained by reason of the negligence or willful misconduct of said owner or of his family and guests, both minor and adult. In the case of joint ownership of a tract the liability of such owners shall be joint and several, except to the extent that the Association has previously contracted in writing with such joint owners to the contrary. The amount of such damage shall be an Assessment against the owner and may be collected as provided herein for the collection of other assessments.

ARTICLE VI

ARCHITECTURAL AND ENVIRONMENTAL CONTROL COMMITTEE

Section 6.01 MEMBERS OF COMMITTEE. The Architectural and Environmental Control Committee, sometimes referred to in this Article VI as “Architectural Committee” or “Committee”, shall consist of five (5) members. The following persons are hereby designated as the initial members of the Committee:

Robert J. Duncan

Ralph A. Pram

Jess C. Groves

Fred K. O’Brien

Ben W. Jennings

Each of said persons shall hold office until such time as he has resigned or has been removed or his successor has been appointed, as provided herein. Members of the Committee may be removed at any time without cause.

Section 6.02 GRANTOR’S RIGHTS OF APPOINTMENT. At any time that Grantor is the owner of at least twenty percent (20%) of the aggregate of the acreage within Tract No. 1, as described on Exhibit “A” attached hereto, Grantor shall have the right to appoint and remove all members of the Committee. At all other times, the Board shall have the right to appoint and remove all members of the Committee.

Section 6.03 REVIEW OF PROPOSED CONSTRUCTION. The Committee shall consider and act upon any and all proposals or plans and specifications submitted for its approval pursuant to Article III, Sections 3.01, 3.02 and 3.08 hereof, and perform such other duties as from time to time shall be assigned to it by the Board, including the inspection of construction in progress to assure it’s conformance with the plans approved by the Committee. The Committee shall approve proposal or plans and specifications submitted for its approval only if it deems that the construction, alterations, or additions contemplated thereby in the locations indicated will not be detrimental to the appearance of the surroundings or the Pine Lakes Ranch as a whole, and that the appearance of any structure affected thereby will be in harmony with the surrounding structures. The Committee may condition its approval of proposals or plans and specifications on such changes therein as it deems appropriate, and may require submission of plans for approval, requiring a fee of not to exceed One Hundred Dollars ($100.00) to accompany each application for approval, or additional factors which it will take into consideration in reviewing submissions. The Committee may require such detail in plans, elevation drawings and description or samples of exterior material and colors. Until receipt by the Committee of any required plans and specifications, the Committee may postpone review of any plan submitted for approval.

Section 6.04 MEETINGS OF THE COMMITTEE The Committee shall meet from time to time as necessary to perform its duties hereunder. The Committee may from time to time by resolution unanimously adopt in writing designate one of its members to take any action or perform any duties for and on behalf of the Committee, except the granting of variances pursuant to Section 6.09. In the absence of such designation, the vote of any three (3) members of the Committee, or the written consent of any three (3) members of the Committee taken without a meeting, shall constitute an act of the Committee.

Section. 6.05 NO WAIVER OF FUTURE APPROVALS. The approval of the Committee to any proposals or plans and specifications or drawings for any work done or proposed or in connection with any other matter requiring the approval and consent of the Committee, shall not be deemed to constitute a waiver of any right to withhold approval or consent as to any similar proposals, plans and specifications, drawings or matter whatever subsequently or additionally submitted for approval or consent.

Section 6.06 COMPENSATION OF MEMBERS. The members of the Committee shall receive no compensation.

Section 6.07 INSPECTION OF WORK. Inspection of work and correction of defects therein shall proceed as follows:

A. Upon the completion of any work for which approved plans are required under this Article IV the owner shall give written notice of completion to the Architectural Committee.

B. Within sixty (60) days thereafter, the Architectural Committee or its duly authorized representative may inspect such improvement. If the Architectural Committee finds that such work was not done in substantial compliance with the approved plans, it shall notify the owner in writing of such non-compliance within such sixty-day period, specifying the particulars of non-compliance, and shall require the owner to remedy the same.

C. If upon the expiration of thirty (30) days from the date of such notification the owner shall have failed to remedy such non-compliance, the Architectural Committee shall notify the Board in writing of such failure. Upon Notice and Hearing, the Board shall determine whether there is a non-compliance and, if so, the nature thereof and the estimated cost of correcting or removing the same. If a non-compliance exists, the owner shall remedy or remove the same within a period of not more than forty-five (45) days from the date of announcement of the Board ruling. If the owner does not comply with the Board ruling within such period, the Board, at its option, may either remove the non-complying improvement or remedy the non-compliance, and the owner shall reimburse the Association, upon demand, for all expenses incurred in connection therewith. If such expenses are not promptly repaid by the owner to the Association, the Board shall levy an assessment against such owner for reimbursement pursuant to Article VI, Section 4.05 and Article VII hereof.

D. If for any reason the Architectural Committee fails to notify the owner of any non-compliance within sixty (60) days after receipt of said written notice of completion from the owner, the improvement shall be deemed to be in accordance with said approved plans.

Section 6.08 NON-LIABILITY OF COMMITTEE MEMBERS. Neither the

Committee nor any member thereof shall be liable to the Association, or to any owner for any loss, damage or injury arising out of or in any way connected with the performance of the Committee’s duties hereunder, unless due to the willful misconduct or bad faith of the Committee. The Committee shall review and approve or disapprove all plans submitted to it for any proposed improvement, alteration or addition, solely on the basis of aesthetic considerations and the overall benefit or detriment which would result to the immediate vicinity and the Pine Lakes Ranch generally. The Committee shall take into consideration the aesthetic aspects of the architectural designs, placement of buildings, landscaping, color schemes, exterior finishes and materials and similar features, but shall not be responsible for reviewing, nor shall its approval of any plan or design be deemed approval of, any plan or design from the standpoint of structural safety or conformance with building or other codes.

Section 6.09 VARIANCES. The Committee may authorize variances from compliance with any of the architectural provisions of this Declaration, including restrictions upon height, size, floor area or placement of structures, or similar restrictions, when circumstances such as topography, natural obstructions, hardship, aesthetic or environmental consideration may require. Such variances must be evidenced in writing, must be signed by at least three (3) members of the Committee, and shall become effective upon recordation in the office of the County Recorder of Valley County. If such variances are granted, no violation of the covenants, conditions and restrictions contained in this Declaration shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive any of the terms and provisions of this Declaration for any purpose except as to the particular property and particular provision hereof covered by the variance.

ARTICLE VII

FUNDS AND ASSESSMENTS

Section 7.01 THE PINE LAKES RANCH MAINTENANCE FUND. The Board shall establish a fund (“The Pine Lakes Ranch Maintenance Fund”) into which shall be deposited all moneys paid to the Association and from which disbursements shall be made in performing the functions of the Association under the Pine Lakes Ranch Restrictions. Funds of the Association must be used solely for purposes related to those areas and improvements owned by the Association or subject by this Declaration to maintenance and assessment or for purposes authorized by this Declaration as it may from time to time be amended.







Section 7.02 YEARLY ESTIMATES OF ASSESSMENTS. At least thirty (30) days prior to the beginning of each fiscal year, the Board shall estimate the expenses to be incurred by the Association during such year in performing its functions under this Declaration (including a reasonable provision for contingencies and appropriate replacement reserves, less any expected income and any surplus form the prior year’s fund). A sum sufficient to pay such estimated net charges will be assessed to the owner of each Tax Parcel in an equal amount. If said sum estimated proves inadequate for any reason, including non-payment of any owner’s assessment, the Association may, at any time, levy a further assessment which shall be assessed equally upon the owner of each Tax Parcel. Notwithstanding the foregoing, any and all special assessments shall likewise be assessed against each Tax Parcel equally.

Section 7.03 PAYMENT OF ASSESSMENTS. All assessments shall be due and payable to the Association by the assessed owners (including Grantor) during the fiscal year in equal monthly installments, on or before the first day of each month, or in such other manner as the Board may designate in its sole and absolute discretion.

Section 7.04 AMENDMENTS. Amendments to this Article VII (but not including amendments to Sections of other Articles which are referred to in this Article or which relate to this Article), shall only be effective upon the vote or written consent of at least 51% of the Members of the Association..

Section 7.05 LATE CHARGES. If any assessment, whether regular or special, assessed to any owner is not paid within thirty (30) days after it is due, the owner may be required by the Board to pay a late charge of eight percent (8%) of the amount of the assessment or such other amount as the Board may designate from time to time.

Section 7.06 UNPAID ASSESSMENTS AS LIENS. The amount of any assessment, whether regular or special, assessed to any owner and any late payment charge attributable thereto, plus interest on such assessment and charge at a rate of eight percent (8%) per annum simple interest (or such other rate as the Board may designate from time to time) and costs, including reasonable attorney’s fees, shall become a lien upon such Tax Parcel upon recordation of a notice of assessment stating the amount of the claim of delinquency, the interest and costs which have accrued thereon, the legal description and street address of the tract against which it has been assessed, and the name of the record owner thereof. Such notice shall be signed and acknowledged by an officer of the Association. Upon recordation it shall create a lien upon the Tax Parcel described in the amount set forth. Such assessment lien shall be prior to any declaration of homestead recorded after the recording of this Declaration. The lien shall continue until fully paid or otherwise satisfied. When the lien has been fully paid or satisfied, a further notice releasing the lien shall be recorded. Such lien may be foreclosed in the same manner as is provided in the laws of the State of Idaho for the foreclosure of liens on real property. A certificate executed and acknowledged by any two (2) members of the Board stating the indebtedness secured by the liens upon any Tax Parcel shall be conclusive upon the Association and the owners as to the amount of such indebtedness as of the date of the certificate, in favor of all persons who rely thereon in good faith, and such certificate shall be furnished to any owner upon request at reasonable fee, not to exceed Ten Dollars ($10.00).

Section 7.07 MORTGAGE PROTECTION. Notwithstanding all other provisions hereof, no lien created under this Article VII nor any breach of the Pine Lakes Ranch Restrictions, nor the enforcement of any provision hereof shall defeat or render invalid the rights of the beneficiary under any recorded mortgage or deed of trust upon the Tax Parcel or condominium unit made in good faith and for value, provided that after the foreclosure of any such mortgage or deed of trust or conveyance of any Tax Parcel or condominium unit, to such mortgage or beneficiary by deed in lieu of foreclosures, such Tax Parcel or condominium unit shall remain subject to the Pine Lakes Ranch Restrictions and the amount of all regular assessments and all special assessments to the extent they relate to expenses incurred subsequent to such foreclosure shall be assessed hereunder to the purchaser at such foreclosure sale.

Section 7.08 NOTICE OF RECORDING MORTAGES. No amendment to this Article VII of this Declaration shall affect the rights of any mortgagee or beneficiary who does not join in the execution thereof; provided that his mortgage or deed of trust is recorded prior to the recordation of such amendment.

Section 7.09 SUBORDINATION By subordination agreement executed by the Association, the benefits of Section 7.07 and 7.08 above may be extended to mortgagees and beneficiaries not otherwise entitled thereto.

ARTICLE VIII.

MISCELLANEOUS

Section 8.01 TERM. The covenants, conditions and restrictions of this Declaration shall run until December 31, 2014, unless amended as herein provided. After December 31, 2014, such covenants, conditions and restrictions shall be automatically extended for successive periods of ten (10) years each, unless amended or extinguished by a written instrument executed by at least fifty-one percent (51%) of the votes held by Members of the Association, and such written instrument is recorded with the Valley County Recorder.

Section 8.02 AMENDMENT.

A. By Grantor. Until 80% of the Blocks in the Pine Lakes Ranch have been sold the provisions of this Declaration, other than this Article, may be amended only by Grantor. Any amendment hereunder shall be effective only upon recordation with the Valley County Recorder of: An instrument in writing signed and acknowledged by Grantor setting forth the amendment; and an instrument in writing signed and acknowledged by the president and secretary of the Association certifying that 80% of the owners (other than Grantor) approved the amendment.

B. By Owners: After 80% of such blocks have been sold, the provisions of this Declaration, other than this article, may be amended by an instrument in writing of the Association certifying that such amendment has been approved by at least fifty-one percent (51%) of the Votes held by the Members of the Association, and such an amendment shall be effective upon its recordation with the Valley County Recorder.

C. Notwithstanding: any other provisions of this Declaration , no amendment of this Declaration shall operate to defeat and render invalid the rights of the mortgagee or beneficiary under any recorded mortgage or deed of trust, upon a Block made in good faith and for value, provided that after the foreclosure of any such mortgage or deed of trust such Block shall remain subject to this Declaration as amended.

Section 8.03 NOTICES. 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 seventy-two (72) hours after a copy of 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, 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.

Section 8.04 INTERPRETATION. The provisions of this Declaration shall be liberally construed to effectuate their purpose of creating a uniform plan for the development and operation of the Pine Lakes Ranch. This Declaration shall be construed and governed under the laws of the State of Idaho.

Section 8.05 ENFORCEMENT AND NON-WAIVER.

A. Right of Enforcement. Except as otherwise provided herein, any owner of any Block within the Pine Lakes Ranch shall have the right to enforce any or all of the provisions of the Pine Lakes Ranch Restrictions upon any property within the Pine Lakes Ranch and the owners thereof.

B. Violations and Nuisance. Every act or omission whereby any provision of the Pine Lakes Ranch Restrictions is violated in whole or in part is hereby declared to be a nuisance and may be enjoined or abated, whether or not the relief sought is for negative or affirmative action by Grantor or the Association or any owner or owners of tracts within the Pine Lakes Ranch. However, any other provisions to the contrary notwithstanding, only Grantor, the Association, the Board or the duly authorized agents of any of them, may enforce by self-help any of the provisions of the Pine Lakes Ranch Restrictions, and only if such self-help is preceded by reasonable notice to the owner..

C. Violation of Law. Any violation of any state, municipal or local law, ordinance or regulation pertaining to the ownership, occupation or use of any property within the Pine Lakes Ranch is hereby declared to be a violation of the Pine Lakes Ranch Restrictions and subject to any or all of the enforcement procedures set forth in said Restrictions.

D. Remedies Cumulative. Each remedy provided by the Pine Lakes Ranch Restrictions is cumulative and not exclusive.

E. Non-Waiver. The failure to enforce any of the provisions of the Pine Lakes Ranch Restrictions at any time shall not constitute a waiver of the right thereafter to enforce any such provision or any other provisions of said Restrictions.

Section 8.06 CONSTRUCTION.

A. Restrictions Construed Together. All of the provisions of the Pine Lakes Ranch Restrictions shall be liberally construed together to promote and effectuate the fundamental concepts of the Pine Lakes Ranch as set forth in the preamble of this Declaration.

B. Restrictions Severable. Notwithstanding the provisions of the foregoing Paragraph A, each of the provisions of the Pine Lakes Ranch Restrictions shall be deemed independent and severable, and the invalidity of partial invalidity of any provision or portion thereof shall not affect the validity or enforceability of any other provision.

C. Singular Includes Plural. Unless the context requires a contrary construction, the singular shall include the plural and the plural the singular; and the masculine, feminine or neuter shall each include the masculine, feminine and neuter.

D. Captions. All captions and titles used in this Declaration are intended solely for convenience or reference and shall not effect that which is set forth in any of the provisions hereof.

Section 8.07 LIFE ESTATE. For their natural lives, the Halls, and each of them, shall have all of the rights and privileges of an owner hereunder, without being an owner herein, save and except that they shall have no vote herein nor shall they share in any funds of the Association, nor shall they be liable for any assessments hereunder.

Section 8.08 RIGHTS AND OBLIGATIONS OF OWNERS OF DIVIDED BLOCKS. In the event that a Block is divided as herein above permitted in Section 3.01, the following shall apply:

(1) The owner of each Tax Parcel shall have one vote in the Home Owners Association.

(2) The owner of each Tax Parcel-=-ml,​​ shall be a member of the Home Owners Association.

(3) Unpaid penalties, assessments, late charges and other sums that may be owing by a parcel owner shall become a lien only upon such parcel to which the same applies.

(4) Except as in this section provided, the provisions of this Declaration shall apply.

Section 8.09 DEDICATION OF ROADS. The Home Owners Association and the Grantor, each with or without the concurrence of the other, shall have the right to dedicate the private roads more particularly described on the official plat of the Pine Lakes Ranch, the private road easements shown on the official plat of Pine Lakes Ranch Addition No. 2, and the private road easements on the proposed plat of Pine Lakes Ranch Addition No., 1, to the use and benefit of the public and transfer title to the same to Valley County or other appropriate political subdivision of the State of Idaho. The Grantor shall have the exclusive right to dedicate to the use of the public and transfer title to the future road right of way easements described on the official plats of Pine Lakes Ranch and Pine Lakes Ranch Addition No. 2, and as described in the proposed plat of Pine Lakes Ranch Addition No. 1. to Valley County, or other appropriate political subdivision of this State.

Section 8.10 ANNEXATION. Grantor may at any time or from time to time during a period up to and including December 31, 1980, add to the property which is covered by this Declaration all or any portion of the land then owned by Grantor located in the County of Valley, limited to a maximum of 165 acres which is adjacent and contiguous to premises herein described. Thereafter only lands owned by the Association may be added to the property covered by this Declaration.

Upon the recording of a notice of addition of territory containing the provisions set forth herein, the covenants, conditions and restrictions contained in this Declaration shall apply to the added land in the same manner as if it were originally covered by this Declaration and originally constituted a portion of Pine Lakes Ranch, and thereafter the rights, privileges, duties and liabilities of the parties to this Declaration with respect to the added land shall be the same as with respect to the original land and the rights, privileges, duties and liabilities of the Owners within the added land shall be the same as in the case of the original land.

The notice of additional territory referred to herein shall contain the following provisions:

A. A reference to this Declaration, which reference shall state the date of recordation hereof and the book of the Records of Valley County, Idaho, and the page numbers where this Declaration is recorded;

B. A statement that the provisions of this Declaration shall apply to the added land as set forth herein; and

C. An exact description of the added land

SECTION 8:11 ATTORNEY'S FEES. In the event any person initiates or defends any legal action or proceeding to interpret or enforce any of the terms of this Declaration, the prevailing party in any such action or proceeding shall be entitled to recover from the losing party in any such action or proceeding the prevailing party's reasonable costs and attorney's fees, including the same with respect to an appeal.

SECTION 8.12 MEDIATION. Prior to initiating any lawsuit, the party who seeks to initiate the lawsuit shall notify the other party in writing of such intention. The parties shall meet within thirty (30) days of such written notice, with a mediator, to attempt to mediate and resolve any dispute hereunder. Until the parties meet, neither party shall institute a legal proceeding unless failure to do so would result in material prejudice to such party. In the event the parties are unsuccessful at obtaining resolution, the parties shall have the right to pursue any legal remedy.



IN WITNESS WHEREOF, Grantor and Arthur A. Hall and Ethel M. Hall, husband and wife, have executed this Declaration the day and year first above written.



WESTERN-DAAGCO

Western National Corporation

Attest: Carol Jean Miller(Signature) by. Robert J. Duncan(Signature)

Secretary President



Daagco Development, Inc.

Attest: Jess C. Groves(Signature) by: Fred K. O’Brien(Signature)

Secretary President



Arthur A. Hall(Signature)

Ethel M. Hall(Signature)