WHEN RECORDED, MAIL TO:

Dave Davis, Esq.
Hale Lane Peek Dennison
Howard and Anderson
100 W. Liberty St., 10th Floor
Reno, Nevada 89501

AMENDED AND RESTATED
DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
WOODLAND VILLAGE

TABLE OF CONTENTS

RECITALS

DECLARATION

ARTICLE I
INCORPORATION OF RECITALS; DEFINITIONS

ARTICLE II
COMMON AREAS

2.1 General Intent
2.2 Ownership and Adjustment of Common Area
2.3 Encumbrances Against Common Area
2.4 Owners' Easements of Enjoyment
2.5 Use of the Common Areas
2.5.1 General
2.5.2 Community Recreation Building
2.6 Declarant's Common Area Easement Rights; Dedication of Common Area
2.6.1 Reservation of Common Area Easements In Favor of Declarant
2.6.2 Reservation of Right to Grant Additional Common Area Easements and to Dedicate Common Area
2.7 Rights of Association to Grant Easements Over Common Area and to Dedicate Portions of Common Area
2.8 Right of Association to Encumber Common Area
2.9 Declarant's Obligation to Convey
2.10 Maintenance of Common Area
2.11 Association Property on Lots

ARTICLE III
PROHIBITIVE AND MANDATORY USE RESTRICTIONS AND OBLIGATIONS

3.1 Forward
3.2 General Development and Use Restrictions
3.2.1 Single Family Residences and Apartments
3.2.2 Parking and Vehicular Restrictions
3.2.3 Nuisances
3.2.4 Unsightly Articles
3.2.5 Animals
3.2.6 Utility Service; Propane Tanks
3.2.7 Diseases and Insects
3.2.8 Compliance With Laws
3.2.9 Drainage; Storm Drain System
3.2.10 Handicapped Rights
3.2.11 Lots and the Improvements Thereon
3.2.12 Owner's Obligation to Rebuild Improvements on a Lot After Damage or Destruction to Improvements
3.2.13 Mineral Exploration, Mining or Drilling
3.2.14 Leasing of Lots
3.2.15 Subdivision; Rezoning
3.2.16 Signs, Antennae and Similar Devices
3.2.17 Rules and Regulations and Design Committee Rules
3.2.18 Owner's Obligation to Maintain and Replace Trees
3.2.19 Manufactured and Mobile Homes
3.2.20 Maintenance of Lateral Sewer Lines Within Lots
3.3 Single Family Development and Use Restrictions
3.3.1 Business or Commercial Activity
3.3.2 View Obstructions
3.3.3 Party Walls/Fences
3.3.4 Perimeter Walls
3.4 Use Restrictions, Maintenance Obligations and Private Easements Applicable to Commercial Areas
3.4.1 Prohibited Uses
3.4.2 Allowed Uses
3.4.3 Landscape Maintenance
3.4.3 Parking; Vehicular Restrictions
3.4.5 Animals
3.4.6 Hours of Operation
3.5 Public Streets, Sidewalks, Etc.
3.6 Violations
3.6.1 Violation Notice
3.6.2 Owner's Right to File an Objection; Hearing Panel; Arbitration
3.6.3 Hearing Panel
3.6.4 Association's Right to Correct Violation
3.6.5 Procedure for Association's Correction of Violation
(a) Bids
(b) Violation Assessment
(c) Performance of Corrective Work By Association
3.6.6 Emergencies
3.6.7 Entry by Court Order
3.6.8 Failure to Appear; Fines
3.7 Variances

ARTICLE IV
THE ASSOCIATION

4.1 Formation
4.2 Association Action; Board of Directors and Officers; Members' Approval
4.3 Membership
4.3.1 Membership Qualifications
4.3.2 Members' Rights and Duties
4.3.3 Voting
(a) General
(b) Appointment and Removal of Members of Board and Officers of Association
(c) Composition of Board of Directors
(d) Persons Entitled to Serve on the Board
4.3.4 Exercise of Voting Rights
4.4 Transfer of Membership

ARTICLE V
POWERS AND DUTIES OF THE ASSOCIATION

5.1 Powers
5.1.1 Assessments
5.1.2 Rules and Regulations
5.1.3 Right of Enforcement
(a) General
(b) Suspension of Voting Rights; Fines
5.1.4 Delegation of Powers; Professional Management; Other Services
5.1.5 Personal Property
5.1.6 Other Services and Properties
5.2 Duties of the Association
5.2.1 Professional Management
5.2.2 Taxes and Assessments
5.2.3 Insurance
5.2.4 Operation and Maintenance of Association Property
5.2.5 Repair of Damaged Curb and Gutter
5.2.6 Implied Authority; Easements
5.2.7 Other
5.3 Limitations on Authority of Board
5.4 Personal Liability
5.5 Meetings of Members
5.6 Association Books and Records and Association Property
5.6.1 Right of Inspection
5.6.2 Declarant's Obligation to Deliver Association Property and Records to Board

ARTICLE VI
ASSESSMENTS

6.1 Agreement to Pay
6.2 Personal Obligations
6.3 Purpose and Amount of Assessments
6.4 Budget and Reserve Requirements
6.4.1 Definitions
6.4.2 Reserve Requirements
6.4.3 Allocation of Annual Assessments
6.4.4 Procedure for Establishing Annual Assessments
6.5 Special Assessments
6.6 Capital Improvement Assessments
6.6.1 Association's Power to Levy; Definition
6.6.2 Petition; Association Approval
6.6.3 Levy of Capital Improvement Assessments
6.6.4 Expenditure for Capital Improvement
6.6.5 Deficiency in Capital Improvement Assessment
6.7 Violation Assessments
6.8 Utilities Assessments
6.9 Rate of Assessment
6.10 Assessment Period
6.11 Notices of Assessments; Delinquencies
6.12 Statement of Account
6.13 Collection of Assessments
6.14 Lien for Assessments; Priority
6.15 Enforcement of Lien
6.15.1 Notice of Delinquent Assessment and Notice of Default
6.15.2 Notice of Sale
6.16 Surplus Funds

ARTICLE VII
INSURANCE

7.1 Insurance to be Obtained
7.2 Casualty Insurance
7.3 Liability Insurance
7.4 Workmen's Compensation and Employer's Liability Insurance
7.5 Fidelity Insurance
7.6 Other Insurance
7.7 Premiums and Reviews
7.8 Form
7.9 Owner's Insurance Responsibilities

ARTICLE VIII
DESIGN COMMITTEE

8.1 Design Committee
8.2 Duties
8.3 Meetings
8.4 Design Committee Rules; Landscape Manual
8.5 Application for Approval of Plans and Specifications
8.6 Basis for Approval of Improvements
8.7 Basis for Disapproval of Improvements
8.8 Form of Approval
8.9 Proceeding with Work
8.10 Failure to Complete Work
8.11 Waiver
8.12 Liability

ARTICLE IX
PROTECTION OF LENDERS

9.1 Encumbrance of Lots Permitted
9.2 Subordination
9.3 Non-Liability for Unpaid Assessments
9.4 Breach of Covenants
9.5 Notice to Eligible Mortgage Holders, Insurers and Guarantors
9.6 Insurance Proceeds and Condemnation Awards
9.7 Appearance at Meetings
9.8 Examination of Records

ARTICLE X
SPECIAL DECLARANT'S AND DEVELOPMENTAL RIGHTS

10.1 General
10.2 Special Declarant's Rights
10.3 Declarant's Developmental Rights
10.3.1 Property Subject to Annexation
10.3.2 Manner of Annexation
10.3.3 Effect of Annexation
10.4 Rights and Obligations of Owners

ARTICLE XI
MISCELLANEOUS PROVISIONS

11.1 Duration
11.2 Amendment
11.3 Enforcement and Waiver
11.3.1 Owner's Right of Enforcement
11.3.2 Violations and Nuisance
11.3.3 Violation of Law
11.3.4 Remedies Cumulative
11.3.5 Nonwaiver
11.3.6 Enforcement by County
11.4 Termination of Former Owner's Liability for Assessments
11.5 Notices
11.6 Approvals
11.7 Construction and Severability; Singular and Plural; Titles
11.7.1 Restrictions and Easements Construed Together
11.7.2 Restrictions and Easements Severable
11.7.3 Singular Includes Plural
11.7.4 Captions
12. Special Rights of VA

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THIS DECLARATION ("Declaration") is made this day of ________________, 2000, by COLD SPRINGS 2000, a Nevada corporation ("Declarant"), with reference to the following facts and is as follows:

A. Declarant caused that certain Declaration of Covenants, Conditions and Restrictions for Woodland Village to be recorded in Official Records, Washoe County, Nevada, on September 13, 1999, as Document No. 2379700 (the "Original Declaration").

B. Declarant is the owner of that certain real property situate in County of Washoe, State of Nevada, and described in Exhibit "A" hereto and by this reference incorporated herein (together with all other real property comprising the Village from time to time, the "Property").

C. Declarant intends to create a planned, mixed-use community within the Property and to sell and convey Lots (below defined) therein subject to the covenants, conditions, restrictions, equitable servitudes, and charges set forth herein which establish a general plan of improvement for the benefit of all of the Lots. The name of the community is Woodland Village. The Village (below defined) and this Declaration are and shall be subject to the provisions of Chapter 116 of Nevada Revised Statutes (the "Act"), as a planned community under the name of Woodland Village.

D. Declarant is or may become the owner of certain other real property situate in Washoe County, Nevada, which is described in Exhibit "B" attached hereto and incorporated herein by this reference, all or a portion of which real property may become Annexed Property (as defined below). In addition, as further provided below in this Declaration, Declarant reserves the right to create a maximum of 3,000 Lots within the Village and to add additional real property to the Village, which real property is not yet identified.

E. Declarant desires to amend and restate the Original Declaration in its entirety and is causing this Declaration to be recorded for such purpose.

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NOW, THEREFORE, Declarant hereby declares that the Property shall be held, conveyed, sold, encumbered, leased, rented, used, occupied, improved, or otherwise affected in any manner, subject to the declarations, limitations, easements, covenants, conditions and restrictions set forth in this Declaration, all of which are hereby declared to be in furtherance of a general plan for the development, improvement, and sale of the Property, and are further declared to be for the purpose of enhancing, maintaining and protecting the value and attractiveness thereof. All provisions hereof shall be deemed to run with the land as covenants running with the land or as equitable servitudes, or as liens, as the case may be, and shall constitute benefits and burdens to the Declarant and its successors and assigns and to all parties hereafter acquiring or owning any interest in the Property in whatever manner such interest may be obtained.

THIS DECLARATION AND EACH OF ITS TERMS AND PROVISIONS SUPERSEDES, AMENDS AND REPLACES, IN ITS ENTIRETY, THE ORIGINAL DECLARATION; AND UPON RECORDATION OF THIS DECLARATION IN OFFICIAL RECORDS, WASHOE COUNTY, NEVADA, THE ORIGINAL DECLARATION SHALL BE OF NO FURTHER FORCE OR EFFECT.

Recitals A through C above are by this reference incorporated into this Declaration. The words, phrases or terms set forth in this Article I, when used in this Declaration, shall have the meanings ascribed thereto in this Article I. Certain other capitalized terms in this Declaration are defined in the specific sections of this Declaration to which such defined terms pertain, and shall have the meanings ascribed thereto in such sections throughout this Declaration.

1.1 "Annexed Property" means any or all real property which is now owned or hereafter may be acquired by Declarant, with respect to which a Supplemental Declaration is recorded causing an annexation of such property pursuant to the provisions of Article X below.

1.2 "Articles" or "Articles of Incorporation" means the Articles of Incorporation of the Association.

1.3 "Association" means the Woodland Village Homeowners Association, a Nevada nonprofit corporation.

1.4 "Association Property" means all real and personal property now or hereafter owned by or leased to the Association or in which the Association has a recognizable legal or equitable present or future interest.

1.5 "Beneficiary" means a beneficiary under a deed of trust or a mortgagee under a mortgage, and/or the assignee of such beneficiary or mortgagee.

1.6 "Board" or "Board of Directors" means the Board of Directors of the Association and is synonymous with "Executive Board" as defined by the Act.

1.7 "Bylaws" means the Bylaws of the Association.

1.8 "Commercial Areas" shall refer collectively to the areas of the Village designated in any Final Map or Supplemental Declaration for use as Commercial Project Types.

1.9 "Commercial Lot" shall mean each Lot designated in any Final Map or Supplemental Declaration for use as a Commercial Project Type.

1.10 "Commercial Project Type" shall mean a Lot or Lots restricted by this Declaration, a Supplemental Declaration or a Final Map to be used for commercial and/or office uses and related uses in accordance with applicable Land Use Ordinances and this Declaration.

1.11 "Common Area" or "Common Areas" means that portion of the Property which is designated as Common Area on a Final Map and which is leased to or owned in fee or some lesser estate or easement interest by the Association, together with all Improvements constructed or to be constructed thereon or therein, including, but not limited to, any recreational facilities and all streets, roadways, utility lines and facilities within the Property (Exclusive of Lots) which have not been accepted for dedication by the applicable governmental entity having jurisdiction.

1.12 "Common Expenses" shall have the meaning set forth in Section 6.4.1 hereof.

1.13 "County" shall mean the County of Washoe, State of Nevada.

1.14 "Declarant" means the undersigned which has made and executed this Declaration or its successors, assigns, or representatives in the event Declarant assigns its rights and obligations, or in the event Declarant's interest in the Village is sold pursuant to foreclosure or deed in lieu thereof.

1.15 "Declaration" means this instrument and any and all supplements and amendments thereto.

1.16 "Design Committee" means the committee formed pursuant to Article VIII hereof.

1.17 "Design Committee Rules" means the rules, if any, adopted by the Design Committee.

1.18 "Development Covenants" shall mean a recorded agreement between Declarant and a Builder or a recorded Declaration executed by a Builder pursuant to an agreement with the Declarant creating covenants running with the land pertaining to the construction of Improvements on a portion of the Property owned by such Builder.

1.19 "Final Map" shall mean a recorded map of any portion of the Property, including, but not limited to, subdivision maps and parcel maps, and any and all amendments thereto, or boundary line adjustments of the Lots created thereby, which is recorded pursuant to statute for the purpose of dividing land into legally created Lots.

1.20 "Improvement" means all structures, and works of improvement and appurtenances thereto of every type and kind, including but not limited to dwellings, buildings, outbuildings, swimming pools (both above and in-ground), garages, carports, basketball goals, roads, driveways, parking areas, fences, screening walls, retaining walls, stairs, decks, landscaping, hedges, windbreaks, planting, planted trees, shrubs, ground cover of every type, poles, signs, exterior air conditioning, water softener, satellite dishes, antennae, fixtures or equipment.

1.21 "Land Use Ordinance" shall mean any zoning law, regional master plan or other ordinance or regulation governing the use of land adopted by the State of Nevada.

1.22 "Lot" or "Parcel" means any portion of the Property designated as a lot or parcel on any recorded final subdivision map or parcel map thereof and intended for improvement with a single family residence or a Commercial Type Project, whether or not the Lot or Parcel is so improved. The Boundaries of each Lot/Parcel and the number identifying the Lot/Parcel are set forth on the Map.

1.23 "Map" means the Final Map of _______________ filed for record __________, 19__, in Book ____, at Page ____ of Plats, Book No. ________, Document No. __________, Official Records, Washoe County, Nevada, and any and all amendments thereto; and all other final subdivision and parcel maps which are recorded in Official Records, Washoe County, Nevada, the real property of which is Annexed Property.

1.24 "Member" or "Association Member" means every person or entity including Declarant who holds a membership in the Association pursuant to the provisions of this Declaration, the Articles and the Bylaws.

1.25 "Owner" means any person or entity, including Declarant, holding a fee simple interest in a Lot or Parcel, or who is the buyer of a Lot or Parcel under a recorded contract of sale.

1.26 "Phase" means each portion of the Village created by a Final Map.

1.27 "Plan" means those items set forth in NRS 116.2109(4), including drawings of Improvements which are filed with agencies which issue permits for the Project, and all number and letter designations set forth thereon identifying Lots or Parcels, all of which are by this reference incorporated herein.

1.28 "Residential Lot" shall mean each Lot designated in any Final Map or Supplemental Declaration, which is not a Commercial Lot.

1.29 "Rules and Regulations" means such rules and regulations as the Board from time to time may adopt pursuant to the terms of this Declaration concerning the use of the Village or any part thereof, including, but not limited to, the Rules and Regulations contemplated pursuant to Sections 2.4.1, 3.1 and 5.1.2.

1.30 "Special Declarant's Rights" means all rights reserved by Declarant for itself under this Declaration which are personal to Declarant and may be exercised only by Declarant, including, but not limited to, those set forth in Article X hereof.

1.31 "Successor Declarant" shall mean any and all successors-in-interest of Declarant which acquire Declarant's entire interest in the Property, and to whom Declarant's rights under this Declaration have been assigned and which assume all of Declarant's obligations hereunder pursuant to a written agreement executed by the transferor Declarant and the transferee Successor Declarant and which is recorded. Declarant and each Successor Declarant who is a transferor Declarant shall cease to be the Declarant hereunder upon recordation of such written assignment.

1.32 "Supplemental Declaration" shall mean a recorded written instrument executed by Declarant, which refers to this Declaration and which annexes real property to the Village as Annexed Property and/or which supplements this Declaration, but is not in conflict with its terms.

1.33 "Village" means the Property, together with all Improvements now or hereafter located thereon, and together with all easements, rights and appurtenances belonging thereto.

1.34 "VA" shall mean the Veterans Administration of the United States of America and any department or agency of the United States government which succeeds to VA's function of issuing guarantees of notes secured by Mortgages on residential real estate.

1.35 The phrase "visible from neighboring property" means, with respect to any given object, that such object is or would be visible to a person six feet (6') tall standing at ground level.

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2.1 General Intent. The purpose of this Article II, among other things, is to provide for the transfer of title from Declarant to the Association of those portions of the Common Areas which are to become Association Property and to provide for the Association's acceptance of responsibility for the care and maintenance of the Association Property and other real and personal property not owned by the Association, but which the Association will be required to maintain. This Article also establishes easements for the Owners' use and enjoyment of the Common Areas, subject to the restrictions set forth in this Declaration and in the Rules and Regulations.

2.2 Ownership and Adjustment of Common Area. All of the Common Area is or will be owned by the Association. The Common Area shall remain private property of the Association unless dedicated to a public authority pursuant to the provisions hereof, and nothing contained herein shall be construed as a dedication to the public of the Common Area or any portion thereof.

Notwithstanding the foregoing, the Common Area(s) will be owned by Declarant until such time as Declarant transfers, or is required to transfer pursuant to the Act, the Common Area(s) in each Phase to the Association. Declarant will develop the Village with a certain amount of Common Area included as required by the County. However, as the Village is developed over time it may be necessary for Declarant to adjust the configuration or size of Common Area in a particular Phase or Phases in order to efficiently and effectively configure the various features of the Village in response to changing circumstances over time as the Village is built out. Accordingly, Declarant reserves the right to adjust the common boundary line(s) between the Common Area(s) in various Phases at any time prior to the conveyance of such Common Area(s) to the Association.

2.3 Encumbrances Against Common Area. Title to the Common Area is or may be subject to the following encumbrances included in the Map and each subsequent Phase (in each instance, "Existing Encumbrances"):

(a) The lien of real property taxes and assessments;

(b) The obligations imposed, directly or indirectly, by virtue of any statute, law, ordinance, resolution, or regulation of the United States of America, the State of Nevada, County of Washoe, or any other political subdivision or public organization having jurisdiction over the Property, or by virtue of any organization or political body created pursuant to any such statute, law, ordinance, or regulation;

(c) Any and all easements and other rights shown on the Map or any other Final Map;

(d) All easements and other rights and obligations created by the Master Declaration or this Declaration;

(e) Any and all loans for the construction of Improvements to the Common Area which loans shall be paid by Declarant as the same become due and payable; and

(f) Any other lien, encumbrance, or defect of title of any kind whatsoever (other than of the type that would at any time or from time to time create a lien upon the Common Area to secure an obligation to pay money) that would not materially and actually prejudice Owners in their use and enjoyment of their Lots and the Common Area.

2.4 Owners' Easements of Enjoyment. Except as otherwise expressly provided elsewhere in this Declaration, each Owner shall have, and the Association hereby grants to each Owner, a non-exclusive easement of use and enjoyment in, to, and throughout the Common Area and for ingress, egress, and support over and through the Common Area. Each such easement shall be appurtenant to and pass with title to each Lot, subject to the following rights and restrictions:

2.4.1 The Association shall have the right to adopt, amend, and enforce Rules and Regulations affecting use of the Common Area; provided, however, that such Rules and Regulations shall not be in conflict with the provisions of this Declaration or any ordinances of the County, or of any other governmental entity.

2.4.2 The Association shall have the right to suspend the right to use any recreational facilities within the Common Area by an Owner, his tenants and guests for any period during which any Assessment against such Owner remains unpaid for a period of thirty (30) days by so notifying the Owner of such suspension, provided, however that if such Owner files a written objection with the Board within ten (10) days after such suspension notice is deemed to have been received by Owner pursuant to the provisions hereof, then such Owner shall be given written notice and an opportunity to be heard. Such notice shall be sent to the Owner by certified mail, return receipt requested, and shall be deemed delivered upon the lapse of three (3) days from and after the deposit of such notice in the United States mail, postage prepaid and addressed to such Owner at his Unit or at such other address as may be on record with the Association. The notice shall include a general statement of the proposed action and the date, time and place of the hearing. At the hearing, the affected person shall have the right, personally or by a representative, to give testimony orally, in writing or both (as specified in the notice), subject to reasonable rules of procedure established by the party conducting the meeting to assure a prompt and orderly resolution of the issues. Any evidence shall be duly considered, but is not binding in making the decision. The affected person shall be notified of the decision in the same manner in which notice of the meeting was given.

2.4.3 The Association shall have the right to limit the number of guests of an Owner utilizing the Common Area.

2.4.4 The Association shall have the right to charge reasonable admission and other fees for the use of any recreational facility situate upon the Common Area.

2.4.5 The Association shall have the right to assign, rent, grant licenses, or otherwise designate and control the use of any parking or storage spaces within the Common Area.

2.4.6 The right of the Association to borrow money to improve, repair or maintain the Common Area.

2.5 Use of the Common Areas.

2.5.1 General. Except as otherwise expressly provided in this Declaration, the Common Area shall be used for open space, parks, recreational amenities, landscape areas, drainage facilities, firebreak areas and such other uses as Declarant through a Supplemental Declaration or the Association, through Association action, shall determine. Except as provided otherwise in Section 2.5.2 below, no persons other than the Owners, their family members, guests and invitees or the Owner's tenants, their family members, guests and invitees shall be allowed to in any manner use or occupy the Common Area; and then only in compliance with and subject to the terms and provisions of this Declaration. The foregoing is not intended, nor shall it be construed, to limit in any manner Declarant's rights to use the Common Areas as provided below in Section 2.6 or in Article X hereof. Each Owner shall at all times be responsible for any and all activities of his tenants, guests and invitees using the Common Area. No Improvements within the Common Area shall be altered or removed, except at the express direction of the Association.

2.5.2 Community Recreation Building. It is anticipated that Declarant will be constructing a recreation building (the "Recreation Building") as part of the Common Area for use by Owners, their family members, guests and invitees as contemplated pursuant to Section 2.5.1 above with respect to Common Areas in general. At such time as Declarant conveys the Recreation Building to the Association, and at all times thereafter, the Association shall retain the services of a professional manager to manage the operation of the Recreation Building. Such management shall require that the Recreation Building be open and generally available to its users during hours which maximize the use of the Recreation Building consistent with the demand placed on it by its users from time to time. While the manager of the Recreation Building shall be entitled to exercise its discretion concerning the actual hours of operation and the programs, events and activities offered and allowed by the Recreation Building, the Association at all times shall retain the final discretionary authority and decision making as to such matters.

The operation of the Recreation Building through the manager shall be funded by user fees as below provided. However, if such usage fees are insufficient to cover the costs to repair, maintain and operate the recreation Building, then the Association may levy a special assessment from time to time in the manner provided in Article VI hereof in order to cover such shortfall. In addition, the Recreation Building shall be open to the general public for its use in the same manner and to the same extent as made available to Owners, their family members, guests and invitees. The Association shall charge a use fee to all users of the Recreation Building. Such fees shall be in such amounts as the Board determines from time to time, and there shall be no distinction made between fees charged to Owners versus those charged to the general public.

2.6 Declarant's Common Area Easement Rights; Dedication of Common Area.

2.6.1 Reservation of Common Area Easements In Favor of Declarant. Declarant hereby reserves unto itself such easements over, through and under the Common Area as may be reasonably necessary to discharge Declarant's obligations or exercise any Special Declarant's Rights, whether arising under the Act or reserved in this Declaration.

2.6.2 Reservation of Right to Grant Additional Common Area Easements and to Dedicate Common Area. Declarant hereby reserves unto itself the right to grant easements and rights of way on, over, through and under the Common Area for the purposes described below and for the benefit of the Owners, the Association, and the right to offer for dedication any portion of the Common Area to any political subdivision, or any public or quasi-public entity or utility. Such grants of easement or dedications may be for any or all of the following described purposes: constructing, erecting, operating, or maintaining on the Common Area, at any time: (i) roads, streets, trails, walks, driveways, vehicle parking areas, parkways, and park areas; (ii) poles, wires, or conduits for transmission of electricity, telephonic communication or cable or master antenna television for the Village and the necessary apparatus incident thereto; and (iii) public and private sewers, sewage disposal systems, storm drains, storm water retention and re-charge basins, land drains and pipes, water systems, sprinkling systems, water, heating and gas lines or pipes, and any and all equipment and other apparatus relating thereto. The rights reserved by Declarant in this Section 2.6.2 may be exercised at any time that Declarant owns any portion of the Property.

2.7 Rights of Association to Grant Easements Over Common Area and to Dedicate Portions of Common Area. At such time as the rights reserved by Declarant under Section 2.6.2 have expired, the Association shall be entitled to exercise the rights reserved to Declarant under Section 2.6.2, provided that at least sixty-seven percent (67%) of the voting power of the Association has approved such action.

2.8 Right of Association to Encumber Common Area. The Association may encumber the Common Area in connection with authorized obligations, but only upon the affirmative vote of not less than sixty-seven percent (67%) of the voting power of the Association.

2.9 Declarant's Obligation to Convey. Declarant shall convey fee simple title or such other interest as the Declarant shall hold to the Common Area in each Phase to the Association prior to the first conveyance of a Lot to an Owner other than Declarant in such Phase, free and clear of all encumbrances and liens, except then Existing Encumbrances.

2.10 Maintenance of Common Area. Maintenance of the Common Area in each Phase and any and all Improvements thereon shall be the obligation of the Declarant solely until the Common Area in such Phase is conveyed to the Association and such conveyance is recorded in the official records of the County Recorder of Washoe County, Nevada (each, a "Transfer Date"). From and after each Transfer Date the obligation to maintain the Common Area and the Improvements thereon for the applicable Phase shall be the obligation of the Association. The Association shall maintain and manage the Common Area and all Improvements thereon in a first class and husbandlike manner. The Association shall maintain all utility, water and sewer lines, equipment and other apparatus within the Common Area, unless such item of maintenance is the obligation of a utility company, or the County.

2.11 Association Property on Lots. Some Lots may have placed on them street lights, drinking fountains or other Improvements which are Association Property. In addition, Improvements on Lots abutting Common Areas and public streets or other facilities may have security cameras, monitors or other surveillance equipment installed thereon in connection with security systems maintained by the Association. There is hereby reserved over and across each Lot and the Improvements thereon, an easement for the benefit of Declarant and the Association for the purpose of installing, repairing, maintaining and operating such Association Property, and providing access to and from such Association Property. All costs of the installation, repair, maintenance and operation of such Improvements shall be borne by the Association. In some instances, power or water necessary to operate such Improvements may be accessed or provided by utilizing power or water facilities servicing the affected Lot, and the foregoing easement shall allow such access and use; provided, however, that any additional cost of power or water resulting from such use of the Owner's power or water service shall be paid by the Association.

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3.1 Forward. The Village, while not officially incorporated or chartered as a municipal corporation, city or town, is in many respects akin to a city or town. Accordingly, this Declaration, in addition to County, State and Federal laws and ordinances, sets forth the rules and methods by which the Village is to be operated, maintained, used and governed. The Association is the local "governing authority," and is intended to conduct itself and undertake its obligations as provided in this Declaration in a manner quite similar to a city or town government. To that end, the Association has elected officials and public meetings, and is empowered by this Declaration to adopt, enact and enforce Rules and Regulations within the parameters set forth in this Declaration.

With the foregoing in mind, the Board is hereby authorized and empowered to adopt, enact and enforce further Rules and Regulations relative to the prohibitive and mandatory use restrictions below set forth in order to protect and enhance value of the Property and the orderly functioning of the Village, and to adapt and respond to changing circumstances and times; provided, however, that no Rule or Regulation adopted or enacted by the Board may be less restrictive or mandatory in its scope or effect without the consent of not less than fifty-one percent (51%) of the voting power of the Association. The power of the Board to enact and adopt such Rules and Regulations shall in no way be limited by the treatment or the specificity of treatment of a subject matter in Sections 3.2, 3.3 or 3.4 below.

Section 3.2 covers use restrictions which apply to all of the Property, Section 3.3 covers those restrictions which apply only to Lots improved with single family residences, and Section 3.4 covers those restrictions which apply only to Lots upon which Commercial Type Projects may be developed. In the event a Lot is designated as part of a commercial Type Project, but pursuant to this Declaration or a Supplemental Declaration may be used also for single family residential use (below defined) then all of the provisions of Sections 3.2, 3.3 and 3.4 shall apply to such Lot as applicable.

3.2 General Development and Use Restrictions. Subject to the exemptions of Declarant set forth in Article X hereof, and other Declarant's rights as set forth in this Declaration, all of the Property shall be held, used and enjoyed subject to, and in accordance with, the following limitations and restrictions:

3.2.1 Single Family Residences and Apartments. Each Lot which is not designated for use as a Commercial Project Type shall be used for "single family residential use" and for no other purpose. An Owner may rent his Lot to a single family provided that the Lot is rented pursuant to a lease in accordance with the requirements set forth in Section 3.2.14 below. The term "single family residential use" shall also be applicable to all apartment living units located on Commercial Project Type Lots, and in all instances shall mean use by one or more persons residing and cooking together as a single housekeeping unit, provided any group of persons either:

(a) is composed exclusively of family members who are related by blood, marriage or legal adoption to each other as grandparents, parents or children, or

(b) contains a maximum number not exceeding two multiplied by the number of bedrooms in the home. The number of bedrooms in any home is the number shown on the plans approved by the County at the time of original construction of the home, not the number of rooms actually used as bedrooms, and not including any bedrooms added by subsequent remodeling or additions.

3.2.2 Parking and Vehicular Restrictions. Parking and vehicular restrictions shall be set forth in the Rules and Regulations, and will limit the number and types of vehicles, the parking of vehicles, and the condition of vehicles in order to maintain an orderly appearance of sufficient parking in the Village. No Owner shall park, store or keep within the Property any inoperable or commercial type vehicle (including, but not limited to, any dump truck, cement mixer truck, oil or gas truck or delivery truck) or vehicles needing significant visible repair (as determined by the Board) unless said inoperable, commercial or damaged vehicle can be, and is, stored in the garage of the Lot. No Owner shall park, store or keep on his Lot any recreational vehicle (including, but not limited to, any camper unit, house/car or motor home, trailer, trailer coach, camp trailer, camper truck, boat, or any other similar vehicle, unless the recreational vehicle is not visible from streets within the Village or if visible from such streets, is visible only to the extent it exceeds a solid fence shielding such vehicle to a height of not less than six feet (6'), or such vehicle is a truck with a camper unit, and such camper truck is used for everyday-type transportation. In addition, 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. The Board shall have the power to enforce all parking and vehicle use restrictions applicable to the Property, including the power to remove violating vehicles from any of the Property to the extent permitted by applicable law.

3.2.3 Nuisances. No rubbish or debris of any kind shall be placed or permitted to accumulate anywhere within the Property, and no odor shall be permitted to arise therefrom so as to render the Property 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 in the Property or to its occupants. Without limiting the generality of any of the foregoing provisions, no speakers, horns, whistles, bells or other sound devices (other than security devices used exclusively for security purposes), noisy or smoky vehicles, large power equipment or large power tools, motorcycles, unlicensed off-road motor vehicles or other items which may unreasonably disturb other Owners or residents or their guests shall be located, used or placed on any portion of the Property or the streets within the Village without the prior written approval of the Board. 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.

3.2.4 Unsightly Articles. No unsightly articles, including clotheslines, shall be permitted to remain on any Lot so as to be visible from neighboring property. Without limiting the generality of the foregoing, refuse, garbage and trash shall be kept at all times in covered, sanitary containers or enclosed areas designed for such purpose. There shall be no exterior fires whatsoever, except barbecue fires contained within receptacles designed therefor, such that they do not create a fire hazard and except as specifically authorized in writing by the Association (and subject to applicable ordinances and fire regulations). No plastic, aluminum, tin or other metallic window coverings are allowed in or on any windows. Severely damaged or "junk" vehicles, even if otherwise operable, shall be brought to a reasonable state of cosmetic repair and appearance no later than thirty (30) days following written notice from the Board. Reasonable repair and appearance shall be determined by the Board in each instance in a manner which is consistent with providing an environment within the Village which is not so unsightly so as to be offensive to a reasonable person or which is detrimental to property values.

3.2.5 Animals. Animals, fowls, reptiles, fish or insects of any kind ("animals") which are common household pets may be raised, bred or kept within the Property, only in accordance with Rules and Regulations adopted by the Board. Poultry shall not be allowed. At a minimum, however, a reasonable number of dogs, cats or other household pets may be kept within a residence, provided that they are not kept, bred or maintained for any commercial purpose, nor in unreasonable quantities, nor in violation of any applicable local ordinance or any other provision of this Declaration and such limitations as may be set forth in the Rules and Regulations. As used in this Declaration "unreasonable quantities" shall ordinarily mean more than five (5) pets per household; provided, however, that the Board may determine that a reasonable number in any instance may be more or less. The Association, acting through the Board, shall have the right to prohibit maintenance of any animal which constitutes, in the opinion of the Board, a nuisance to other Owners in the Property. Animals belonging to Owners, residents, or their guests within the Property must be either kept within an enclosure or on a leash or other restraint being held by a person capable of controlling the animal, and who then has in his possession a proper or adequate utensil or other means of cleaning up immediately all feces of such animal. Furthermore, to the extent permitted by law, any Owner shall be liable to each and all remaining Owners, residents, their families and guests, for any unreasonable noise or damage to person or property caused by any animals brought or kept upon the Property by an Owner or resident or by members of their family or guests; and it shall be the absolute duty and responsibility of each such Owner to clean up immediately after such animals which have used any portion of the Common Area.

3.2.6 Utility Service; Propane Tanks. No lines, wires, or devices for transmission of electric current or telephone, television, or radio signals shall be constructed, placed, or maintained anywhere within any Lot unless the same shall be contained in conduits or cables placed and maintained underground or concealed in or under buildings or approved structures. Nothing herein shall be deemed to forbid the erection and use of temporary power or telephone services incidental to the construction of Improvements. Propane tanks may be placed on a Lot, but only if such placement otherwise complies with the terms and provisions of this Section 3.2.6; and at such time as gas service is made available to service such Lot, such tank must be removed and such gas service hooked-up to such Lot within ninety (90) days of such service being made available for actual use at any physical point along the property lines of such Lot.

3.2.7 Diseases and Insects. No Owner shall permit any thing or condition to exist upon his Lot that shall induce, breed, or harbor infectious plant or tree diseases or noxious insects.

3.2.8 Compliance With Laws. Nothing shall be done or kept in, on or about any portion of the Property, or Improvement thereon, except in compliance with all applicable federal, state and local laws, regulations and ordinances (collectively, "laws") including environmental laws.

3.2.9 Drainage; Storm Drain System. There shall be no interference with the rain gutters, downspouts, or drainage or storm drain systems originally installed by Declarant or any other interference with the established drainage pattern over any portion of the Property, unless an adequate alternative provision, previously approved in writing by the Declarant and the Design Committee is made for proper drainage. For purposes hereof, "established" drainage is defined as the drainage pattern and drainage Improvements which exist at the time such portion of the Property is conveyed by Declarant to an Owner, by the Declarant to the Association, or as modified in accordance with plans approved by the Declarant until Declarant's Control Termination Date or, thereafter, by the Design Committee. There shall be no violation of the drainage requirements of the City, County, U.S. Army Corps of Engineers, or State of Nevada Division of Environmental Protection, notwithstanding any such approval of Declarant or the Design Committee.

3.2.10 Handicapped Rights. Subject to the review and approval process of the Design Committee and applicable law, each Owner shall have the right to modify such Owner's Improvements and the route over the Lot or Common Area (as applicable and necessary) leading to the entrance of such Owner's Improvements, at such Owner's sole cost and expense, in order to facilitate access by persons who are blind, visually handicapped, deaf or physically disabled, to alter conditions which could be hazardous to such persons, or to otherwise comply with the Americans with Disabilities Act.

3.2.11 Lots and the Improvements Thereon. Each Owner shall have the obligation to repair and maintain such Owner's Lot and the Improvements thereon, at such Owner's sole cost and expense. Such repair and maintenance responsibilities shall include, but are not limited to, the following: all plumbing, electrical and gas lines, equipment and facilities, all water and sewer lines and all other utility facilities serving the property to be maintained by the Owner, all Improvements within such property, all exterior walls (including the painting thereof), windows, skylights and roofs, and all other Improvements on such property. Each Owner shall keep all shrubs, trees, grass and plantings within such Owner's Lot neatly trimmed, properly watered and cultivated, and free from trash, weeds, debris and other unsightly material. No approval from the Design Committee shall be necessary for the performance of normal maintenance and repair work.

3.2.12 Owner's Obligation to Rebuild Improvements on a Lot After Damage or Destruction to Improvements. No Owner shall do any act or work that will impair the structural soundness or safety of any Improvement located within such Owner's Lot. Each Owner shall carry casualty insurance insuring the Improvements on such Owner's Lot. Prior to commencement of work to repair or reconstruct a damaged Improvement, the Owner shall submit the plans and specifications for the repair or reconstruction of the Improvement to the Design Committee, and shall have received written approval thereof prior to the commencement of any work of repair or reconstruction. The Owner shall commence repair or reconstruction of a damaged or destroyed Improvement within the longer of one hundred twenty (120) days after the event causing the damage or destruction, or forty-five (45) days after the insurance proceeds are made available for reconstruction purposes; provided, however, that in the event the insurance proceeds available to the Owner are insufficient to complete such repair or reconstruction, or in the event a holder of a Deed of Trust exercises any right of such holder to apply all or substantially all of the insurance proceeds to the indebtedness secured by the Deed of Trust and the Owner elects not to rebuild the damaged or destroyed Improvements, then within six (6) months after the event causing the damage or destruction the Owner shall remove all debris from the Lot and restore the Lot to a state that is not offensive to the general appearance of the Property, which restoration plan shall be submitted to, and approved by, the Design Committee prior to the commencement of the restoration work. The Owner shall perform all repairs, maintenance and upkeep of such Lot in accordance with this Declaration. The failure of the Owner to repair or reconstruct the damaged or destroyed Improvements, or to restore the Lot to an inoffensive state as required hereby shall be deemed to be a Maintenance Violation as set forth in Section 3.6 below.

3.2.13 Mineral Exploration, Mining or Drilling. No portion of the surface of the Property shall be used for the purpose of mining, quarrying, drilling, boring or exploring for or removing water, oil, gas or other hydrocarbons, geothermal heat, minerals, rocks, stones, gravel or earth, nor shall oil, water or other wells, tanks, tunnels, mineral or geothermal excavations or shafts be permitted upon the surface of any portion of the Property, except any water wells installed by Declarant or any public or private utility company for the exclusive or nonexclusive use and benefit of the Property and such excavations and removal of earth and other substances as may be done by Declarant during and incidental to the development of the Property.

3.2.14 Leasing of Lots. Subject to Declarant's rights to forbid leasing of single family residential Lots for an initial period of six (6) months pursuant to the purchase and sale agreement between Declarant and an Owner for the sale and purchase of such Lot, an Owner shall be permitted to lease all, but not less than all, of such Owner's Lot provided that:

(a) The Owner and all tenants ("Tenant") enter into a written lease which provides that the terms of the lease shall be subject in all respects to the provisions of this Declaration and the Rules and Regulations, and that any failure by the Tenant to comply with the terms of such documents shall be a default under the lease;

(b) The Tenant is furnished with a copy of this Declaration and the Rules and Regulations;

(c) The lease grants to the Association as a third-party beneficiary the right to evict the Tenant for failure to comply with this Declaration or the Rules and Regulations; and

(d) The Secretary of the Association has been furnished with the name(s) and mailing addresses of the Tenant within five (5) business days after execution of the lease.

Each Owner shall be responsible and liable for all activities of such Owner's Tenant which are in violation of this Declaration or the Rules and Regulations.

3.2.15 Subdivision; Rezoning. Commercial Lots may be subdivided in accordance with applicable laws, ordinances, rules and regulations. Except as expressly authorized in this Declaration, or a Supplemental Declaration, no other Lot in the Property may be further subdivided (including division into time-share estates or time-share uses) without the prior written approval of Declarant; provided, however, that nothing in this Section shall be deemed to prevent an Owner from, or require the approval of Declarant or the Board for (a) transferring or selling any Lot to more than one (1) person to be held by them as tenants in common, joint tenants, community property or community property with right of survivorship; or (b) the leasing or renting by any Owner of such Owner's entire Lot, provided that any such lease or rental shall be subject to this Declaration. Except for Commercial Lots, no application for rezoning of any Lot, and no applications for variances or use permits shall be filed with any governmental authority unless the proposed use of the Lot has been approved by Declarant or, from and after the Declarant's Control Termination Date by the Board, and the proposed use otherwise complies with this Declaration. Notwithstanding anything contained herein to the contrary, Declarant, or its successors or assigns, shall have the right to change the location, size or configuration of the Common Areas within the Village after a Final Map thereof has been recorded, so long as such change does not materially and adversely affect any Owners in the use of their Lot.

3.2.16 Signs, Antennae and Similar Devices. Signs, antennae, poles, including, without limitation, flag poles and basketball poles and hoops, satellite dishes and similar devices or apparatus are allowed, if at all, only in accordance with the Rules and Regulations.

3.2.17 Rules and Regulations and Design Committee Rules. Each Owner shall adhere to the Rules and Regulations and the Design Committee Rules at all times.

3.2.18 Owner's Obligation to Maintain and Replace Trees. Declarant will be planting trees along the streets within the Village and installing irrigation facilities to provide water to such trees. Except as otherwise provided below in this Section 3.2.18, the Association shall have the responsibility to maintain all such trees and irrigation systems, except for such trees as are located in cul-de-sacs, which must be maintained and replaced by each Owner whose Lot frontage abuts the area where such trees are planted. Except for delays caused by prudent seasonal restrictions or inclement weather, each Owner who has maintenance responsibility for any such street tree shall remove and replace, at its cost, any diseased (unless such disease is curable, in which case such Owner shall commence and complete such cure in a diligent manner), dead or dying tree within sixty (60) days of written notice from the Association to such Owner requiring such removal and replacement. The failure of such Owner to remove and replace such diseased, dead or dying tree as above provided shall be deemed a Maintenance Violation as set forth in Section 3.6 below. Regardless of whose responsibility it is to maintain trees as provided in this Section 3.2.18, any tree which extends over any street in the Village, public or private, shall be pruned so as to continuously provide not less than thirteen and one-half feet (13.5') of clearance above all street paving.

In addition to the foregoing, each Owner whose Lot abuts a street right-of-way (not in a cul-de-sac), in which a tree (or trees) is planted by Declarant, shall have the responsibility of watering such tree in a manner appropriate for its good health and normal growth. In the event any such tree(s) dies as a result of such Owner's failure to appropriately water such tree(s), the Association may replace such tree with a one inch (1") caliper tree; and such Owner shall be responsible for the payment of the removal of the dead tree and the cost of the replacement tree and the labor and materials required to plant it. Failure to pay such amounts shall be deemed a Maintenance Violation. Except as above provided in this paragraph, the Association shall provide overall maintenance, including trimming, of non-cul-de-sac trees planted in the front of Lots by Declarant.

Each Owner is hereby advised that trees may need to be removed from the street rights of way for the purpose of repairing or installing utilities. Any such removal shall be at no cost to the affected Owners, and the Association shall replace all such trees at no cost to the affected Owners.

3.2.19 Manufactured and Mobile Homes. No manufactured or mobile home (as such homes are defined by applicable law) shall be placed, installed, parked or stored within the Village at any time except for construction trailers placed temporarily on a Lot in connection with the construction of Improvements thereon in compliance with Article VIII hereof, and then only during the time of such construction. Under no circumstance shall any such construction trailer be used for residential purposes at any time, including, without limitation, during the time the applicable Improvements are being constructed.

3.2.20 Maintenance of Lateral Sewer Lines Within Lots. There may be instances where two (2) Lots share a lateral sewer line ("Shared Lateral") from the point of its hook-up to the main sewer line to a point where such shared lateral line divides to provide separate service to such Lots. As to each Lot which depends on a Shared Lateral for sewer service to the Lot, by acceptance of a deed to such Lot its Owner agrees as follows:

(a) The County shall have no responsibility whatsoever for the maintenance or repair of a Shared Lateral, and the County is expressly absolved of any such responsibility, which ultimately lies with the Association vis à vis the County.

(b) If a Shared Lateral becomes clogged, inoperable or in need of repair, each affected Owner shall be responsible for the payment of one-half (1/2) of the cost to repair such Shared Lateral, and the failure of an Owner to make such payment within thirty (30) days after written demand from a paying Owner shall entitle the paying Owner to petition the Association for the issuance of a Violation Notice to the non-paying Owner.

(c) If a Shared Lateral becomes clogged, inoperable or in need of repair and the affected Owners either do not remedy such situation themselves or are in dispute as to the cause or responsibility for such situation, then the Association shall have the right to issue a Violation Notice to each Owner and avail itself of all rights and remedies provided for herein with respect to Maintenance Violations.

3.3 Single Family Development and Use Restrictions. Subject to the exemptions of Declarant set forth in Article X hereof, and other Declarant's rights as set forth in this Declaration, all of the Lots upon which a single family residence is or is to be constructed shall be held, used and enjoyed subject to, and in accordance with, the following limitations and restrictions:

3.3.1 Business or Commercial Activity. No such Lot shall ever be used for any business, commercial (including auctions or similar events), manufacturing, mercantile, storage, vending or other nonresidential purposes, including without limitation any activity for which the provider is compensated in any way or receives any form of consideration, regardless of whether the activity is engaged in full or part-time, generates or does not generate a profit, or requires or does not require a license; except Declarant, its successors and assigns may use any portion of the Property for a model home site and display and sales offices in accordance with Article X hereof. The provisions of this Section 3.3.1 shall not preclude any of the above-described activities which are conducted without external evidence thereof provided that all of the following conditions are fulfilled: (a) such activities are conducted in conformance with all applicable governmental ordinances; (b) the patrons or clientele of such activities do not routinely or in significant numbers visit the Lot or park automobiles or other vehicles within the Village; (c) the existence or operation of such activities is not apparent or detectable by sight, sound or smell from outside of the boundaries of the residence on such Lot; (d) no such activity increases the liability or casualty insurance obligation or premium of the Association; and (e) such activities are consistent with the residential character of the Village and otherwise conform with the provisions of this Declaration. The terms and provisions of this Section 3.3.1 do not apply to those portions of Improvements on Commercial Lots which are designated and intended to be used for commercial purposes. Once initially constructed, the single family residential use and commercial use portions of Improvements on Commercial Lots may be changed to single family or commercial use, as the case may be, only with the consent of the Design Committee.

3.3.2 View Obstructions. No Improvement or other obstruction shall be planted, constructed, or maintained on any Lot in such location or of such height as to unreasonably obstruct the view from any other Lot. Each Owner or resident of a Lot shall be responsible for periodic trimming, pruning and thinning of all hedges, shrubs and trees located on that portion of his Lot which is subject to his control or maintenance, so as to not unreasonably obstruct the view of other Owners or residents. If an Owner or resident fails to perform necessary trimming, pruning or thinning, the Association shall have the right, after ten (10) days prior notice requesting such work be done and the Owner or resident not having done so, to enter upon such Lot for purposes of performing such work. Each Owner, by accepting a deed to a Lot, hereby acknowledges that any construction or installation by Declarant may impair the view of such Owner, and hereby consents to such impairment.

3.3.3 Party Walls/Fences. Each wall/fence which is built as a part of the original construction by Declarant and placed on the property line between Lots shall constitute a "party wall." In the event that any party wall is not constructed exactly on the property line, the Owners affected shall accept the party wall as the property boundary. The cost of reasonable repair and maintenance of party walls shall be shared by the Owners who use such wall in proportion to such use (e.g., if the party wall is the boundary between two Owners, then each such Owner shall bear half of such cost). If a party wall is destroyed or damaged by fire or other casualty, any Owner whose Lot has use of the wall may restore it, and any other Owner whose Lot makes use of the wall shall contribute to the cost of restoration thereof in proportion to such use. The foregoing shall not prejudice the right of any such Owner to call for a larger contribution from another Owner pursuant to any rule of law regarding liability for negligent or willful acts or omissions. Notwithstanding any provision of this Section 3.3.3, an Owner who by his negligent or willful act causes a party wall to be destroyed or damaged shall bear the entire cost of the necessary repair or reconstruction.

3.3.4 Perimeter Walls. Walls and/or fences around the exterior boundary of the Village ("perimeter walls") constructed or to be constructed by Declarant are Improvements, all portions of which are located, or conclusively deemed to be located, within the boundaries of individual Lots. By acceptance of a deed to his Lot, each Owner on whose Lot a portion of the perimeter wall is located, hereby covenants, at the Owner's sole expense, with regard to said portion of the perimeter wall ("Lot Wall"): to maintain at all times in effect thereon property and casualty insurance, on a current replacement cost; to maintain and keep the Lot Wall at all times in good repair; and, if and when reasonably necessary, to replace the Lot Wall to its condition and appearance as originally constructed by Declarant. No changes or alterations (including, without limitation, temporary alterations, such as removal of the Lot Wall for construction of a swimming pool or other Improvement) shall be made to the perimeter walls, or any portion thereof, without the prior written approval of the Design Committee. If any Owner shall fail to insure, or to maintain, repair or replace his Lot Wall within sixty (60) days when reasonably necessary, in accordance with this Section 3.3.4, the Association shall be entitled to insure, or to maintain, repair or replace such Lot Wall, and to assess the full cost thereof against the Owner as a Special Assessment, which may be enforced as provided for in this Declaration. The foregoing notwithstanding, the Association, at its sole expense, shall be responsible for removing or painting over any graffiti from or on the exterior sides of the perimeter walls.

3.4 Use Restrictions, Maintenance Obligations and Private Easements Applicable to Commercial Areas. Subject to the exemptions of Declarant set forth in Article X below, and the other Declarant's rights set forth in this Declaration, all Commercial Lots shall be held, used and enjoyed subject to the following additional limitations and restrictions.

3.4.1 Prohibited Uses. No portion of a Commercial Lot shall ever be used or caused to be used or allowed or authorized to be used in any way, directly or indirectly, for any manufacturing or industrial purpose, for adult bookstores or other businesses involving the sale, use, distribution or dissemination of pornographic literature, videos, movies or similar materials, for businesses involving the sale, use, distribution or dissemination of drug paraphernalia, for automobile sales, rental, service or repair, for outdoor storage or for unlimited gaming.

3.4.2 Allowed Uses. Commercial Lots upon which Commercial Type Projects are established are intended for the commercial, personal service and public service needs of the residents of the Village and the Cold Springs community at large. Commercial Project Type uses permitted within the Village are not intended to serve regional needs. Only the following uses will be permitted:

• •Single and Multi-family dwellings
• •Professional offices
• •Medical offices
• •Medical clinics
• •Child care facilities
• •Community center
• •Cultural and library services
• •Recreation
• •Postal Services
• •Public parking facilities
• •Grooming and pet stores
• •Veterinary services
• •Neighborhood commercial center
• •Limited gaming (slots only)
• •Eating and drinking establishments
• •Meeting facilities
• •Financial Services
• •Liquor sales (on and off premises)
• •Retail sales
• •Government offices
• •Such other uses as are allowed pursuant to the governmental zoning ordinances and regulations applicable to the Village from time to time, excluding, however, those prohibited uses set forth in Section 3.4.1 above.

3.4.3 Landscape Maintenance. Without limiting the terms and provisions of the Landscape Manual (below defined in Article VIII), the Owner of each Commercial Lot shall properly maintain and periodically replace, when necessary, any trees, plants, grass, vegetation or other landscaping Improvements located on such Owner's Lot.

3.4.3 Parking; Vehicular Restrictions. Parking of vehicles of any type shall be restricted to designated parking areas, and no employees, agents, business invitees, tenants or customers of any Owner of a Commercial Lot shall be permitted to park in areas not so designated, or on any street (public or private) within the Property, except for purposes of loading or unloading passengers or emergency repairs. There shall be no employee parking allowed on streets fronting Commercial Lots. All deliveries or loading and unloading of goods or materials shall be restricted to designated loading docks or similar facilities. No repairs or restorations of any motor vehicle, boat, trailer, aircraft or other vehicle or equipment shall be conducted upon any street (public or private), or Lot, except wholly within a facility specifically designated for such purpose or within an enclosed garage. The Board shall determine, in its discretion, whether there is noncompliance with the parking and vehicular restrictions contained herein. These parking and vehicular restrictions shall not be interpreted in such a manner so as to permit any activity which would be contrary to any ordinance of the County. These parking and vehicular restrictions shall not apply to any public or private transportation system providing passenger shuttle service within the Property which has been approved by Declarant or the Board.

3.4.5 Animals. No animals, birds, reptiles, poultry, fish or insects of any kind shall be raised, bred or kept, except in licensed aquariums or retail pet shops operated as a business.

3.4.6 Hours of Operation. Commercial activities may be conducted on Commercial Lots only during the period of 6:00 a.m. to 11:00 p.m.; provided, however, that the Recreation Building may be operated during such additional hours as approved by the Board from time to time.

3.5 Public Streets, Sidewalks, Etc. Each and every provision of Sections 3.2, 3.3 and 3.4, shall apply to activities conducted on, or conditions existing with respect to, all public streets, sidewalks and other public areas located within the Village, to the extent that any such activity or condition conducted or caused, or suffered to be conducted to caused, by any Owner on such public property shall be deemed to have occurred on or with respect to, such Owner's Lot; and the Association shall be entitled to exercise all powers and remedies against such Owner as though the violation had occurred on such Owner's Lot.

3.6 Violations.

3.6.1 Violation Notice. If any Owner allows, permits, or causes any condition to exist on or within such Owner's Lot or any of the Common Areas, as the case may be, or the Improvements thereon, which violates the provisions of Article III of this Declaration or, in the sole reasonable discretion of the Board, is unsightly, unsanitary, or hazardous (including, but not limited to, a condition which causes dust to carry to another Lot) (herein collectively "Violation"), then, except as otherwise provided in Section 3.6.6, hereof, (in the case of an emergency), the Association shall give the Owner written notice ("Violation Notice"), specifying the nature of the Violation and a reasonable time period within which the Owner(s) must correct such Violation, as the Board determines is reasonably required, which cure period shall be no less than thirty (30) days. In the event that the Board fails to give a Violation Notice to a Owner who has defaulted in its obligation hereunder, then upon the filing with the Board of a meritorious written complaint (herein "Owner Complaint") executed by the Owners of any two (2) Lots within the Village, the Board shall have the obligation to give such Violation Notice.

3.6.2 Owner's Right to File an Objection; Hearing Panel; Arbitration. The Owner to whom a Violation Notice is given shall have the right to file a written objection thereto with the Secretary of the Association within ten (10) days after such Owner is deemed to have received such Violation Notice. In the event such an objection is filed, and within thirty (30) days after the objection is filed, the Board may elect either (i) to convene a Hearing Panel (defined below), or (ii) submit the matter to binding arbitration pursuant to the provisions of Chapter 38 of the Nevada Revised Statutes. By acceptance of his deed or other instrument of conveyance, each Owner shall be deemed to have agreed to binding arbitration pursuant to the provisions of NRS 38.300, et seq., or any successor statute, if such matter goes to arbitration.

3.6.3 Hearing Panel. In the event the Board elects pursuant to Section 3.6.2 above, to convene a Hearing Panel, then the President of the Association shall appoint, within thirty (30) days after receipt of the Owner's objection, a panel of three (3) Board Members or three (3) members of any committee of the Board established by the Board pursuant to the Bylaws (the "Hearing Panel"), at least one (1) of whom shall be an Owner of a Lot within the same type as the Lot which is the subject of the Violation Notice. The Hearing Panel shall convene no later than fifteen (15) days after its appointment for the purpose of conducting a hearing on the disputed Violation. Notice of such hearing, and time and place thereof, shall be given to the Owner to whom the Violation Notice is given and any other Owners who have filed Owner Complaints at least five (5) business days prior to the date set for such hearing. The Hearing Panel shall give written notice of its decision to the Owner against whom the Violation Notice was given as to whether or not a Violation exists and the nature of such violation. Copies of such decision shall be mailed to all persons who filed an Owner Complaint. The decision of the Hearing Panel shall be nonbinding and appealable as set forth in NRS 38.300, et seq., or any successor statute. Appeals must be initiated within fifteen (15) days after the Hearing Panel renders its decision. The notice period within which a Violation must be cured shall be tolled from the date of filing such objection until the date the Hearing Panel notifies the Owner in writing of its decision and if an appeal is filed, during the pendency of the appeal.

3.6.4 Association's Right to Correct Violation. If an Owner does not appeal a Violation Notice and fails to cure the Violation within the applicable time period, or if a binding decision is rendered that a Violation exists and the Owner fails to correct a Violation within the period specified in such decision, or, if no time is specified, within a reasonable time ("cure period"), then in any such event the Association, acting through the Board, shall have the right, but not the obligation, to correct the Violation in accordance with the procedures set forth below.

3.6.5 Procedure for Association's Correction of Violation.

(a) Bids. In the event the Association elects to correct a Violation, then prior to commencement of work, if any, necessary to correct the Violation and promptly after the expiration of the cure period afforded a defaulting Owner, the Board shall obtain three (3) written bids to perform the required work and shall mail the bids to the Owner. The Owner shall have the right to select the bid by notifying the Board in writing within fourteen (14) days after the bids are mailed by the Board to the Owner. In the event the Owner fails to select a bid within such time period, the Board shall select the bid.

(b) Violation Assessment. When the bid has been selected as set forth in subsection (a), above, the Board shall levy a Violation Assessment pursuant to Section 8.7 hereof against the Owner in the amount of the cost of correcting the Violation and the costs and expenses, including attorneys' fees, incurred by the Association incident thereto.

(c) Performance of Corrective Work By Association. The Board may, at its sole option and discretion, elect to cause the corrective work to be commenced promptly after the Violation Assessment has been levied against the Owner, or elect to postpone the corrective work until after the amount of the Violation Assessment has been collected partially or in full. Neither the Association, the Board, nor any of the Association's agents, or employees shall be liable for any damage which may result from any work performed by the Association to cure a Violation.

3.6.6 Emergencies. In the event any officer of the Association believes, in his or her sole reasonable discretion, that an emergency situation exists within a Lot (including within any Improvement thereon) or within any Common Area and that immediate action or repairs are necessary to prevent or mitigate damages, then such officer or the Association's authorized agent shall have the right to exercise the Association's right of entry without notice. If after gaining entry, any officer or agent of the Association still believes in his or her sole reasonable discretion, that immediate action or repairs are necessary to prevent or mitigate damages, then the Association shall have the right to take such action or make such repairs without notice to the Owner and without a hearing, and without obtaining competitive bids as provided above. The Association shall levy a Violation Assessment against the Owner in the amount of the cost of the necessary action or the corrective work and all costs and expenses, including attorneys' fees, incurred by the Association incident thereto. Neither the Association, the Board, nor any of the Association's agents or employees, nor any person hired by the Association to perform the necessary action or corrective work, shall be liable for any damage which may result from any work so performed on behalf of the Association.

3.6.7 Entry by Court Order. In the event a Owner prevents an officer of the Association or authorized agent of the Association from gaining access to such Owner's Lot (including within any Improvement thereon) or Common Area for the purpose of correcting a Violation or for the purpose of attending to an emergency situation, then the Owner(s) shall be jointly and severally liable to the Association for attorneys' fees, court costs and incidental expenses incurred by the Association for the purpose of gaining such entry and all other costs and expenses incident thereto (collectively "Entry Costs"), and such Entry Costs shall be assessed to the Owner as a Violation Assessment pursuant to Section 6.7 hereof.

3.6.8 Failure to Appear; Fines. In the event an Owner fails or refuses to cure a Violation as required after having been given a Violation Notice, or fails to attend the hearing on an appeal initiated pursuant to Sections 3.6.2 and 3.6.3 above, then the Board may avail itself, on behalf of the Association, of any available remedy under this Declaration or pursuant to equity or law, including, without limitation, the right to levy fines against such Owner as provided in Section 5.1.3 below. All remedies of the Association shall be cumulative, and the levy of a fine shall not be exclusive as to other remedies.

3.7 Variances. The Board is authorized to grant reasonable variances from the use restrictions set forth in this Article III and in the Rules and Regulations, if specific application of the restriction will, in the sole discretion of the Board, either cause an undue hardship to the affected Owner or fail to further or preserve the common plan and scheme of development and property protection intended by this Declaration. The granting of one variance shall not be considered precedent for the granting of subsequent variances. The opinions of adjoining property owners must be considered by the Board prior to approval of a variance.

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4.1 Formation. The Association is a nonprofit corporation formed or to be formed under the laws of the State of Nevada. Prior to the conveyance of the first Lot to an Owner other than Declarant, Declarant shall cause the Articles of Incorporation to be filed with the Secretary of State of the State of Nevada. The Association shall be charged with the duties and invested with the powers set forth in the Articles, Bylaws, and this Declaration. The Association is not authorized to have and shall not issue any capital stock.

4.2 Association Action; Board of Directors and Officers; Members' Approval. Except as to matters requiring the approval of members as set forth in the Articles, Bylaws, this Declaration, or Chapter 82 and 116 of the Nevada Revised Statutes, the affairs of the Association shall be conducted by the Board and such officers as the Board may elect or appoint in accordance with this Declaration or the Bylaws, or their amendments. Except for the Member of the Board appointed by Declarant in accordance with this Declaration, the Articles and the Bylaws and the members of the first Board named in the Articles, the Board shall be composed of Members only. All members of the Board must be at least eighteen (18) years of age. The members of the first Board of the Association named in the Articles shall serve until the first meeting of the Members of the Association which is called for the purpose of electing their successors. The annual meeting of the Members of the Association shall be held on the first (1st) day of March of each calendar year, or such other date as is designated by the Board; provided, the Association shall meet at least once in each calendar year, and not more than one (1) full calendar year shall elapse between each Annual meeting of the Members of the Association. Notwithstanding the foregoing to the contrary, the foregoing requirement to hold at least one (1) Association meeting each year may be satisfied by the Board adopting a resolution for the Association to meet, for example, on the "Second Saturday in the month of February" of each year, even though more than one (1) year may have elapsed between any given second Saturdays in February. Such meeting shall be called, noticed and conducted in accordance with the Articles and the Bylaws. Except as otherwise provided in the Articles, Bylaws, this Declaration, or Chapters 82 or 116 of the Nevada Revised Statutes, all matters requiring the approval of Members shall be deemed approved if Members holding a majority of the total voting power assent to them by written consent as provided in the Bylaws or if approved by a majority vote of a quorum of Members at any regular or special meeting held in accordance with the Bylaws. The Association shall hold not less than one (1) general meeting each calendar year.

4.3 Membership.

4.3.1 Membership Qualifications. The Members of the Association shall be the Owners of the Lots. The Owner(s) of each Lot shall have one (1) membership in the Association. The number of memberships in the Association shall be equal to the number of Lots within the Village at any given time.

4.3.2 Members' Rights and Duties. As used in this Declaration, the term "Member" shall refer to the Owner of a Lot if there is one Owner, or collectively to all of the Owners of a Lot if there is more than one Owner. Each Member shall have the rights, duties, and obligations set forth in this Declaration, the Articles, Bylaws, and Rules and Regulations, as the same may from time to time be amended. Except as otherwise provided in subsections (b) and (c) of Section 4.3.3 below, the respective interests of each of the Members shall be equal.

4.3.3 Voting.

(a) General. Except as otherwise provided in subsections (b) and (c) of this Section 4.3.3, each Member shall be entitled to one vote for each Residential Lot owned by such Member; and each Member shall be entitled to one (1) vote, plus an additional fractional vote, if applicable, for each Commercial Lot owned by such Member, determined as follows:

(1) Each Commercial Lot shall be entitled to one (1) vote, plus additional one-seventh (1/7th) multiples thereof, based on the gross square footage of the Improvements constructed on such Commercial Lot from time to time. Accordingly, Commercial Lot voting rates will vary according to the square footage of the Improvements on such Lots. For example, (i) if the gross square footage of the Improvements on a Commercial Lot is 1,400, then the Member will be entitled to one (1) vote, or (ii) if the gross square footage of the Improvements is 1,800, then the Member will be entitled to one and two-sevenths (1-2/7ths) votes or (iii) if the gross square footage of the Improvements is 1,940, then the Member will be entitled to one and three-sevenths (1-3/7ths) votes (round to the nearest one-seventh (1/7th));

(2) Voting rates shall remain constant for each fiscal year of the Association and shall be determined as of the first (1st) day of each fiscal year; provided, however, that the initial voting rate for each Commercial Lot which is unimproved shall be one (1) vote and shall be adjusted in accordance with the terms and provisions of subparagraph (1) above in mid-fiscal year only upon the issuance of a final certificate of occupancy for the initial Improvements constructed on such Commercial Lot. Thereafter, adjustments in voting rates for such Commercial Lot shall take place only as of the first day of each fiscal year of the Association. Each Commercial Lot shall be entitled to one (1) vote, regardless of the square footage of, or lack of, Improvements on such Lot.

The Association may not cast any vote otherwise allocated to it for any Lot it may own.

(b) Appointment and Removal of Members of Board and Officers of Association. Subject to the provisions of subsection (d) of this Section 4.3.3, Declarant reserves the right to appoint and remove all of the members of the Board and all of the officers of the Association until the earlier of the following events:

(i) Sixty (60) days after conveyance of seventy-five percent (75%) of the Lots which may be created in the Property or any Annexed Property to Owners other than Declarant (herein "Purchasers"); or

(ii) Five (5) years after Declarant has ceased to offer for sale in the ordinary course of business any Lots within the Property or any Annexed Property.

Declarant shall have the right to designate a person or persons who are entitled to exercise the rights reserved to Declarant under this subsection (b). The date on which the rights reserved by Declarant under this subsection (b) terminate is herein called "the Declarant's control Termination Date." From and after the Declarant's Control Termination Date, the Board of Directors and the officers of the Association shall be elected and appointed as provided in the Articles and Bylaws.

(c) Composition of Board of Directors. Notwithstanding anything to the contrary set forth herein, not later than sixty (60) days after Declarant's conveyance of Lots equal to twenty-five percent (25%) of the total number of Lots which may be created within the Property to Owners other than Declarant, at least one member and not less than twenty-five percent (25%) of the members of the Board shall be elected by Owners other than the Declarant. Not later than sixty (60) days after conveyance of fifty percent (50%) of the Lots which may be created within the Property or any Annexed Property to Owners other than Declarant, not less than thirty-three and one-third percent (33-1/3%) of the members of the Board shall be elected by Owners other than the Declarant. Not later than on the Declarant's Control Termination Date, the Owners shall elect a Board of at least three (3) members, at least a majority of whom must be Owners.

(d) Persons Entitled to Serve on the Board. Except for the members of the Board appointed by Declarant in accordance with the Declaration, the Articles and the Bylaws, and the members of the first Board named in the Articles, all members of the Board shall be Members of the Association. Each Board member shall meet the eligibility requirements further set forth in the Bylaws. In all events where the person serving or offering to serve as an officer of the Association or member of the Board is not the record Owner, such person shall file proof of his or her authority in the records of the Association.

4.3.4 Exercise of Voting Rights. In the case of a Lot owned by two (2) or more persons or entities, the voting power shall be exercised by only one of them. Such voting member must be designated in writing to the Board by all Owners of such Lot, and the Association may preclude the vote for any such Lot by any Owner other than such designated Owner. If there is no such designation then such Lot shall have no vote until such designation is made. No vote allocated to a Lot owned by the Association may be cast.

4.4 Transfer of Membership. The Association membership of the Owner(s) of a Lot shall be appurtenant to such Lot, and shall not be assigned, transferred, pledged, hypothecated, conveyed, or alienated in any way except on a transfer of title to such Lot, and then only to the transferee. Any attempt to make a prohibited transfer shall be void. Any transfer of title or interest to a Lot shall operate automatically to transfer the appurtenant membership rights in the Association to the new owner(s). Prior to any transfer of title to a Lot (including the sale of a Lot under a recorded contract of sale), either the transferring owner or the acquiring owner shall give notice to the Board of such transfer, including the name and address of the acquiring owner and the anticipated date of transfer. The Association shall have the right to charge a reasonable transfer fee payable to the Association on the date of transfer of title to the Lot, which transfer fee shall be assessed against the Lot as a Violation Assessment if not paid when due.

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5.1 Powers. The Association shall have all the powers of a non-profit corporation organized under the laws of the State of Nevada and the powers conferred upon it pursuant to Chapters 82 and 116 of the Nevada Revised Statutes, subject only to such limitations on the exercise of such powers as are set forth in the Articles, the Bylaws, and this Declaration. It shall have the power to do any lawful thing that may be authorized, required, or permitted to be done by the Association under this Declaration, the Articles, and the Bylaws, and to do and perform any act that may be necessary or proper for or incidental to the exercise of any of the express powers of the Association, including, without limitation, the following:

5.1.1 Assessments. The Association shall have the power to establish, fix, and levy assessments as set forth in Article VI hereof (herein collectively "Assessments") and to enforce payment of such Assessments in accordance with the provisions of this Declaration.

5.1.2 Rules and Regulations. Without limiting in any manner the rights of the Board to adopt and enact property usage rules and restrictions as provided in Section 3.1 above, and in addition to such rights, the Board shall have the power to adopt, amend, and repeal the Rules and Regulations regulating the use of the Common Area and for such other purposes as are expressly allowed by this Declaration or allowed pursuant to the Act. A copy of the Rules and Regulations as adopted, amended, or repealed, shall be mailed or otherwise delivered to each Member.

5.1.3 Right of Enforcement.

(a) General. The Association in its own name and on its own behalf, or on behalf of the Owners of two (2) or more Lots who consent, any Member on its own behalf, and Declarant on its own behalf, shall have the power and authority to commence and maintain actions for damages, or to restrain and enjoin any actual or threatened breach of any provision of this Declaration, the Articles, Bylaws, Rules and Regulations, or any resolutions of the Board, to enforce by mandatory injunction, or otherwise, all of these provisions, to intervene in litigation or administrative proceedings on matters affecting the Village. The Court in any such action may award the successful party reasonable expenses in prosecuting such action, including reasonable attorneys' fees.

(b) Suspension of Voting Rights; Fines. The Association shall have the power and authority to suspend the voting rights, suspend an Owner's right to use any recreational amenities comprising the Common Area, and can assess monetary penalties as allowed pursuant to the Act, against any Owner of a Lot or other person entitled to exercise such Owner's rights or privileges for any violation of this Declaration, the Articles, Bylaws or Rules and Regulations. Before invoking any such suspension or fine, the Board shall first proceed in accordance with the applicable requirements of Section 3.6. The Association does not have the power or authority to cause a forfeiture or abridgment of an Owner's right to the full use and enjoyment of such Owner's Lot if the Owner does not comply with provisions of this Declaration or of the Articles, Bylaws, or Rules and Regulations, except when the loss or forfeiture is the result of a court judgment, arbitration decision, or a foreclosure or sale under a power of sale based on failure of the Owner to pay assessments levied by the Association. If the Association adopts a policy which allows the imposition of fines on an Owner for the violation of the Rules and Regulations and the terms and provisions of Article III hereof, the secretary or other officer specified in the Bylaws shall prepare and cause to be hand-delivered or sent prepaid by United States mail to the mailing address of each Lot or to any other mailing address designated in writing by the Lot's Owner, a schedule of the fines that may be imposed for those violations. Notwithstanding any other provision of this Declaration to the contrary, a fine may be assessed against an Owner for a violation of the Rules and Regulations, only if the Owner was given written notice of the applicable Rule or Regulation, and all amendments thereto, at least thirty (30) days before the alleged violation. Each fine must be commensurate with the severity of the violation, but must not exceed $100.00 for each violation or a total amount of $500.00, whichever is less. If a fine is imposed and the violation is not cured within fourteen (14) days or a longer period as may be established by the Board, the violation shall be deemed a continuing violation. Thereafter, the Board may impose an additional fine for the violation for each seven (7) day period or portion thereof that the violation is not cured. Any additional fine may be imposed without notice and an opportunity to be heard.

5.1.4 Delegation of Powers; Professional Management; Other Services. The Association, acting by and through the Board, can delegate its powers, duties, and responsibilities to committees of Members, employees, agents and independent contractors, including a professional managing agent. The Association may obtain and pay for legal, accounting, and other services necessary and desirable in connection with the operation of the Village and the enforcement of this Declaration.

5.1.5 Personal Property. The Association may acquire and hold for the use and benefit of all the Owners tangible and intangible personal property, and may dispose of the same by sale or otherwise.

5.1.6 Other Services and Properties. The Association shall have the power 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 this Declaration, the Articles, or Bylaws, including security services for the Village generally, or which, in its opinion, shall be necessary or proper for the operation of the Association, and to incur liabilities and make contracts respecting the same.

5.2 Duties of the Association. In addition to the duties delegated to it by its Articles or the Bylaws, and without limiting their generality, the Association, acting by and through the Board, or persons or entities described in Section 5.1.3, has the obligation to conduct all business affairs of common interest to all Members and to perform each of the following duties