plans and specificerluas, !hili it will not bring liny IIctjun or suit llgalnst the Associulion.Declarant or ACC 10 recover any such damages.

L. If a member of the ACC has II financilll interest in any matter subject to II vote by theACC, such membefll shall .b!lhsin from voting on that matter,

ARTrClEVm

RESIR1CTIONS AND COVENANTS

Sectiog I. ComplWwc by OWJ!Cfl!:RcM5Cljons IUlsf Covmnls. Every Owner shallcomply with the restrictions and COVClUiJ1lli set furth herein and any Andall rulca and regulation!adopted by the Bow The following Illl: the initial Restrictions and Covenants of senler's Baywhich may be amended, modified or lIlfdcd to from lime to time !ISprovided in the By·Laws:

A. Residentjal Use. except Il!I provided in exhibit ''B''. at1ach~ berdo and made II parthereof, Settlcc"lI Bay, aubjccc COIbis Declaration, ahall be used for single-family residentialpurpoSei and related recreational facilities only and for no nthe.- purposes. DeclllJ1lJlt and anywignee shall be able to build and maintain sales modd8 and offices until such lime u the lastplU'CC1 ill Settler's Bay iSlIGW by Declaranl Or Declinlnl'lI Ulli8llCC. U!iC!I that do not conform. to

the applicable provisions of the applicable zoning ordinances, if any, will not be permitted.Any Owner who dIall I~c hill Residential Unit shall be responsible for assuring

compliance by such Owner', lessee with Ihis Decteration, the Articles and the By-Lu.W9. TIleminimum period fill' any lease is six. months.

B. Inj:!Urance,Nothing shall be done or kept on !he Properties which shall increase the Tilleof WUIIIIJCO on any Lot. any Reaidential Unit. or the Common Areas without the approval of theBoard, nor shaUan)'thjog be done or kept on the: Properties which would result iu thecancellation of insurance on any Residential Unit, or DOY part oflhc Common Areas or wbichwould be in violation of any Illw.

C. Temporary Bulldlgg. No house trailer, mobile homo, (It' similar facility or structureshalt be placed on any lot except to serve as II single family dwelling or constnu:tion offiiceduring the ccnstrection of II pem1I1nCIDt home. and SIIid house or office trailer, mobile bome, orsimilar fjU::ililyor structure is to be removed upon CQmpiction oflbe permanent dwellin~~ In noevent shall said hOU8C trailer, mobile homo, or similar filcility or structure or succession of suchstructures remain on any 101for more lhlW twelve: ( 12) months.

D. Tmh amJ.Q!I!b'gc, No lumber, metal" bulk rn•.teria~, refuse or trash shall be kept,stored or allowed to accumulate (In the PrOpcrUCB except building milfcrials during lbc course ofconstrudion of any approvod structure; provided, however, that no unnecessary accumul'ation ofscrap, trHh. papcn 0[' other refuse in connection with such construction Ilclivily shall bepermitted and all construction sites shall be rcgulllliy policed and kepI neat and crderly to theextent. reasonably possible. Iftrllllh or olher refuse ill 10 be disposed of by being picked u,pandcarried away on II regular and rcauring basis, containers may be placed in tho Qpen on ally daythat a pick-up is to be made 81 melt place ail will be accessible to pcr.IOns makina such pick- up.At all other times, such eont.ainCl'll8hall be stored so that they eannot be seen from surrounding~~~«.s.J~~~~~ ~~~I~ ..efWiSCJClllIOlUIble fllIC3IlndI~~Wioll!

D~IIII,'!~J.IIII JIII!PII2004-0023oa~ 200~l8U8~

T

relating to 1116 size, shape. calor !lnd type of contPinen penniltcd IItId the maMer of storage of thesame. On aite disposal of truh and garbage by burying or burning is eXpFClIsly pruhibitt:d.

E. Buriol of Pipe !IDdwis!. No water pipe, gas pipe, sC'Wer pipe, dcllinllge pipe or 5tQJ1lgCtaolc shall be installed Ol' maintained On the Properties sbeve Ihe SUn8CO of Ihe ground, except

hoses and movable pipes used for inil{ation PUl'jJ05cs. No property sball be used for the purposeof bonag, mining, quarrying. exploring for or removingcil or other bydrocalbon.s, minQllls,gravel or earth; provided, however, thac nothing contained herein shall prohibit Of restrictremoval of fill or earth materials to construct or create approved drainage structures orlandscaped berms, provided there is approvlt! from the Ace.

F. Nuisance. Nothing shall be done on the Propatics that is illegal or that may be Of maybecome an annoyance Of nuisance to the ncigbborlwod. In the event of any questions IIll to whatmay be or become a nuisance, such queations ,Iutll be submitted to the Asseciatlon fO! a decisionin writing and its decisions shaU be final.

G. Weeds and UndqbOllb. No weeds, underbrush or other unsightly growths shall bepermitted to grow or remain upon the improved and landscaped portions of Properties and norefuse pile or unsightly objects shall be allowed to be placed or permitted to remain anywherethereon.

H. Vehicle PA~ing. No vehicle, bus, boal, or trailer mall be parked in the strect in frontof any Lot except fur eonstmction and repair while a resideace or resldeoces are being built Of

repaired in the immediate vicinity; provided however, tlte period of construction .mall last nolonger than twelve (12) moodl5. No llIlR!gi9tcred Of inoperable motor vehicle or lrBilcr of anykind may be disassembled, serviced, repaired or stored on any street in Settler's Bay or on any ofthe Properties.

I. D{!inage. No changes in elevations of property subject to these restrictions shan bemede without the Cllprc35 written -Wrovlli of lh" Ace. No c:stablish(;d dnlinagc; panem within anorca designated as a drainage easement shall be altered without wrlllen approval of theAssociation and, if required, the MatSu Borough.

I. AnImals. No horses, cattle, swine, goets, poultry, fowl or any other animals notcommonly consid«ed bousehold pets IhaII be kept on the Properties. Undf;!f'no circumstancesshall any commercial or businw enterprises involving the breeding, use. care or treatment ofanimals be conducted on the PropcrtiCi. All pets shall be kept on Illcash when not on Of in thepel owncn Lot or Unit and no pel shall be allowed to roam WlItlCilldcd. The AS8OCiationmllY,from lime to lime, publish and impose reasonable regulations setting forth the type and aumbeeof animals that may be kept on the Properties.

K. DUliines. Except u permitted in lU"CIlSclusific:d u commercial in Exhibit "8", nomanufacturins. trade, btutn-. commerce, industry, profiosaion or nther occupaJioo whaboov«will be conducted or carried on upon tho Propel1i\:$ or in any building or other structure erectedthereon, provided that

(I) on any rropcrty, any orti~l, lII1isan, qaftsman or other bu$inCiS person may pursuohis eedeavor so long Il!I he also usee such print" Melt for residential purposes, is self-employed

AmcodDd and RaIllIOd DcclaraliooofCovcnanu, ConditiON and !leItri<;IlON Page J.4

IJlfll~lllmlltlll1301 2:1

200H1023~

and hAS nO employees worL:ing in such privete •••..,., and dues 0<>\ advertiae or offer ••ny product orwork to the public upon or from such private area, Any such business pcnion mlly no! create JUly

excessive noise or traffic congestion.

L Mainten!!nce of Patljn g AreAS,Efe. All setback uea!, )'IlIlU, wallcwa}ls, Driveways,parking ~ and d,-amagc IIwales shalt be mllmillincd end ~t in a neat end c)C4I1 condition,free 0rre fuse and debris.

M. Majntsmcmco of LandscapedArm. All landscaped areas (to the paved public ri~t-of-way) shalll 1>.:m.inl&im:.! in live. healthy 4Ild growinS condilion, proper-I)' WlltCf'Cdandtrimmed. Any planting of UUS' shrubs or trees which become dud or badly damaged shIll berepl..,cd wilh simil •••.•sound. healthy plant materials.

N. Maintenance; gfLm4SC1piHi 10 Public Rjgbklf -Yhv Edac. Any Owntr within thePropc:rtics that owns or has the maintcnmce responsibility fur- property adjoillin! 111I1 publicright-ilf-wIlY shall maintabllhc land$:4plng to me public right-ot:way regardless of the propertyboundaries on th••plat.

O. fences. The composition, location and height of fences II1Id walls must be approvedby the ACC prior to installation.

P. ~ The excessive nmovsl of existing trees and shrubbery (liS distinguished frombrush and undergrowth) &om any Lot shall not he permiued (Cllcept within the foundationperimeter line for thc dwcllina) unlC:Wllands~ing of an equivalent or bigher qualilY issubstituted therefor and the prior approval of the ACC ill obtained.

Q. Si8rnI. No sign of any kind shill be displayed to the: public view on any Lot OfRcsidClIliul Unit, Oltcept thoao thAt shill be in oompliaru:o with the guidelinc:a c:alliblishW by IheACC and confonning to appJiClblc MatSu Borough (;Odcs iUld ordinmccs, if any, 1110 ACe ,hallhave tho right to 08talJliab jUldclinc3 30 as to require e unifonn stlUldllCd for signs in theproperties, Notwithstanding anything contained herein to tbe contrary, WlY Lot Owner shalt beentitled to displAY 10 the public view on any Lot or Resldenlial Unit, signs with I maximumdimension of six (6) square feet for the purpose of maJtcting and sales of such Lot or ResidentialUnit.

R. Wibtinl. No exterior liabting fixtures shall he installed on any Reaidcnfial Unitwithout adequate and prop« shield InS of fixtures. No lighting fixture shall be ilJlll.Uod that maybe OTbecomo an annoyance or a nuisance to tho other fe$idGllIS of Residential Units.

AA. Time SbMg. No Lot or Residential Unit shall be owned or used in multiple ortime :shuc owncnhip.

BB. SilO and Construction ofDwc:llings 1lOd. Garages.

SccljoD I. Lots One through Twenty-Six (1-26) in Block Seven (1), BlockSixteen (16) and Block Twenty-six (26) of Unit Two (2), Settler'sBIIY. sbatt contain a minimum of 1750 square feet of living ereaand shal! have paved ddveways and I two cae garage cither

Amcud~ o.nd Rcttoted o.,.,t.r.tian of COII'I:IWUJi. Coodiliong .00 R""LrictIO<UI Page 15

11~lml~1I1111.1I0f 211

2004-OO2301.CJ .-'IS 01 232003-438188-4

nllachcd to or detaehed from the sl.n.Jctu.ce which is not oonsideccdpart of the living Mea.

Each single family residence to be constructed in Block One (l).Block Two (2). Block Three (3) and Block Four (4) DrUml One(I) shall eontain 8 minimum of 1200 .square feet of living area andshill contAin /I 1car glU'&gc.

Block 6, tots Twenty-seven (27) Ihrougll Sixty-nine (27-69 inBlock Seven (7), Block Eight through Fillcen (S·IS). and BlockSeventeen through Twenty- five (11-25) of Unil Two (2) Settler'sBay shall contain /I. minimum of 1,400 9qUArC feet of)iving Mea.

Each and evocy dwelling must have a paved driveway and anenclosed gmogo, either attached to or detached from the mainstructure, capable ofbousltllJ at last two la.rgc aummobilcs.

Block 6, lots One (I) through (I4) shall contain II minimum ofl ,000 square feet ofliving area.

On multi-tamilY dwellings. gllfllgc5 and paved driveways are""{uiccodond d,,, mtoUuum. ••izo of eech llvinG unit if to be 800square feet.

ce. Oil, 05', Mincnl. Mining and&cavlllion Opcr!!tiom, No oil, SOS.mineral. miningor excavatien operations of IlI1Y kind or character shall be permitted upon any Lot or area of thePropentes,

S25ition Z. Uabilitv for DNDI89 W Common Propgtv. Each Owner shllll be legally lillbleto the Association for aU damages to the Common Propccty or to any improVlllll_~thereof orthereto, including. but not limited to, the bulldinp. recreational facilities and lwut..seaping,causedby 3ucll Owner, his pct(s} hiJ liecroscc(a) or any occupant of such Ownen Residential Lot or Unit,as such liability may bo determined under Aloslci Law.

Section 3. Enfun:emc:ul, Failure of the Owner to comply wilb the restrictiolUl, covenantsor rutoa and rcgulaliom Kt forth Itc:rdo mall be grouads fur Action which may Include, withoutlimitation, an action to recover SUJll!I due for damages, iQjunctive relict or any combinationthereof, including com and attomoys fi:es incurred in bringing such actions. and jfnecclJ~,(;()Its and attorneys fees for "ppellato fCvic:w. The AJlIodltion alulll hive: the right 10 enforce theprovisions of this Declaration and to IUlIpe1ld voting rights and use of Common ArCllll for anyOwna violating the provisions bcn:of for I!. period of time which is the longer of sixty {60} daysor the leon of continued violation.

Section 4. fines. In additioo to all other remedies. in the 1lO1e discretion of the Board ofthe Aasoclatloo, II fine or finCli may be impoaod upon an Owner fur failure of All Owner, hillfamily, guesa, invitees, tenmu or employees to comply with any covenant, remotion. rule Of

regulation, contained herein Of promulgated pursuant to these Declarenuna provided mefollowing procedures are adhered to:

Illfl~llglR.1f1fTaI25

2004-OO2:JM.O

A. Noticg. Tho Association shall notifY the Owner of the infraction or infractious.Included in the notice shllli be date and time of tho next Board meeting at which time the Ownermay, ifhc aD desires, prese:nt reasons why pcmdt~1.1cs} shauld not be imposed.

B. Harin& The noncompliance shan be presented to the Board _fie: which timethe Board .han hear reasona why penalties should not be imposed. A written decision of theBoan.i shall be submitted to the Owner by lIOt ltier than twenty-one (21 ) days after the Boardsmeeting.

c. Penalties The Board may impose fines in the fonn of individual assessmentsagainst the Residential Unit or Lot owned by the Owner as follows:

(I) first noncompliance or violalion: a fine not in excess of One Hundredand Noll 00 Dollars ($100.00);

(2) second noncompliance or violation: a fine not in excess of FiveHundred and NoilOO DoII~ ($SOO.OO};

(3) third and subsequcot nonoomplltlllCC. or violation or violations that areof a continuing naluro: a fillC nol in exCCSll of Twenty-fi •••c aod 00I100tluDollars ($2S.00) for each day of condou"" violation or noncompliance.

D. P&m!cnt of Penalties. Fines shan be paid not laler than thirty (30) dap aftccnotice of the imposition or U5CSSmcntof the penalties.

E. Collection of fines. fines shall be treated IS an assessment otherwise: due to theAssociation, and II!! such will be a perional obligation of the Owncr(s} IUld a lien IIglliml theOwnc:r'(s) Lot.

F. Application OfPClJAIriCS. All monies received. from finee shall be allocated lIS

directed by the Board,

O. NPRH9!!3jvo Rqncdy. These fines shall not be:construed 10 be exclusive, andshan OltiJIt in addition to all o(llCC right3 IIDd remedies 10 whim tho Association may be otherwiselegally entitled, Lnc:luding without limitation, injunctive eelief,

ARTICLE IX

AMENPMeNTS

These Covenants, Conditiom md Restrictions may be IUncndcd. modified 0. revoked inany RISpOCt from time to time by Deelanmt prior to tho time of the first con veyano••of. CommonArea to the Owncr5 Association. Subsequent to that time, the Covenants Conditions andRestrictions may be amended., modified or rcvokeAl by • vote of the member! of the Associationwho own 75% of we lots in the project Declarant's rights as Declarant will end with the 6011IllmSfcr of Common Area (0 the A$SOCiatlon. The date of first trBlUfcr of Common AIea to theAssociation shall also be known IISI the Turnover Dale.

Amc:odadand bal.aled DecIMaIioo orco_QU. Coodiliou and IWtrictiOll.l

~II.I~'~~IIIIII -2004..(102301-4 2.00~38Sa8..o

Pago 11

NOTICE BY SETTLERS BAY OWNERS ASSOCIATION, INC

Seulers BllY Owners Association, Inc., (nereafter me •Aascciaticn") is sheAssociarion of Lot Owners who are members pursuant 10 the Amended and RestatedDeclaration of Coveaams, Conditions an4 Restrictions, recorded October 25, 1996, ill

Book 870, at Page 814, Palmer Recording District. The Association is charged by theDeclaration wit It the IS'CSSJncnl of Lot Owners and the regulation of the LOI S that makeup Settlers Bay Subdivision, Unit! J and 2, under the land use classification andrestrictions and architectural control requirements oft!'; Dectararion.

Ar the time thill notice is given. Owners of the following lots form Ille Senters fia)lOwners Asseciauon and aI¢ subject 10 regulation and assessment by the Association:

LOIS ;-35, Block I; Lots 1·47, Block 2; Lou 1-19. Block 3; Lou! -17. Block 4:Sealer's Bay Subdivision, Unit No I, IICC[}f.iing to PIal No. 75-61. PalmerRecording District, Third Judicial ni.micl, Stale of Alaska,

Lots 1-14, Block 6; Lots j.37. 42·49 and 52.69, Bloc" 7; Lots 1·17, Block 8;Lots Hi3, Block: 9; Lots I-51, BlOI:k 11; L -s l-18, Block 12; LOlli 1-47.Block Il; Lots 1-41. Block H. Lm:.I-6, Blod: 1:5;lots loll, Hlock 16; LoIS !-

27, Bloc!> 17; Lots I-H. Block l8, Lots 1-16. Block 151, Lots I-H, Bloc\;: 20,Lou 1-24, Black 11; Lots I--H, Black 22~Loa l-li. Block 23; Loa '>S1, Bloc\>24; Lots 1-21, Block 25; lots 1-21,Block 26, Settlers Bay Subdivision.. Vui! No.2, according to Pial No. 77-17, Palmer Recording Di~lricl, ThirQJudicial District,Stare of Alaska; and

Lots l-S, Block H; Lots i-8 Block I. SeUler~Blly Subdivision, linil No 2,according to Plat No, P~Pallllo::r Rccording District. Third ludicia!District, Stat ••of Alas!:., -1 q_4~1...The Associarion is also charged by Ihe DcclllTllllOn with maintenance of any

Common ArCIl tracts conveyed to it by Declaranr Allhe lime this nonce is!, 'ven,however, no Common Area tracts have been conveyed to she Association

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Qcenp! JDd SIriD Ci!mmcn:ja! Rtpjnm pjJgicI. l.cJt 11IiI1y-fm ()S). BJoc;t Oac (I).1.Dtt Oao (I). Two (2), UId Loa T~ Iiuuuib ~ (26-41) afB\oI:t T_ (2), UailODe(I). Locs Ooc IbruqIa FOI8'"{I-4) UId Loa T~ IluouP TwallCy-Giald (21.2B) of810ct llRc (3). UIlitODc (l~ LoU SixItllollp~(6-11) afBIockFaur(41 Uailo..c.(I ~ Addili-Uy. Loa TwaUy-aor; tbrousb Thirty-row (21-l4). Block T_ (2). Uail o..c. (l)11II)'be IIICd IS a:sidI:aliIl 01' COIIIl'IlCIIliI BuqJt IS IIIIII:II,LoIs oflbis rle"/ficatioD &IeiDrcad&:dspccificaIIy fur diose ••••• SIIII1*ldia& ~ wbcn: ~ scrvi<:ca..-.~ IOO<b -' •.•.••~ ad -wrapriuc \aDd"IISCL

Ca) Commacla1 means:po:aonaI savic:as. ~ I,Plih. mlllti-fiunlly bcIIDiuioad •••, olber """ which ~ •••• fil&.Lola orChil claai&alioat"" subJ=t 10 tho: tDUuwi ••"

(I) My lot used or dcoJpakd fiw ~ _ shall naCbe used so as 10pcnnitexccai~ uoaa «amoB: ud lID IIIISi&bdY IIP"PIian of comtncl'CiaI cquipme:a& IbaII be[XIIIIIiuad. YE>=sUw" is dafiDed b U- JlIIIfflO'CS" • dep=~ Ihaf~ byIIICI permincd in !he dia1Ii!ll iIIlhc:lr ~ _ o( DpIDIion Dr 10 • cit:&I= illjurious 10dIOI pubIl" t..Ilh,lIIfiny. -t1ioJg or """"CDIc:ncc.

(2) BuiIdlap shallbe lot back. mluiasUDI oCtwaII)I-tM (2S) !Cd: fromfrootlotfua aDd r-my (20) r- fIum RV lotfua ADda IIIiDioun oflca (in) f=llium Jidc lotli.aes. CIC¢CpC tW IOQ dWlltave buildiDiI-.bIck oi6ft..... (15) &let fmm tile _ sidel<ltliDC_

(3) Na ~ ar.ila. mobile: bocncor similar mci/hy 111"sIruoefurD shall bepbK;cd oa allY 101.

Lots 1-35, Block 1iLob 1-41, Blod: 2; lots 1-39, Block 3; Lots 1-17, Block.; Settler'sBay Subdivision, Unit No: I, IICCOtdlng to Pt.1 No, 75-61. Pa.I~ Recording disttict.Third Judicial District. State of Aluklr. lots 1-14, Block 6; Lots 1-37,42-49 and 52-69,Block 7; Lots l·tt, Block 8; Lots \-63; Block: 9;-'Lob: I-51, Block rt; .Lots 1-18,BJoclc: 12; Lou 1-47. Block. 13; Lot! 1-4\ Bk>ck 14; Lots 1-6;'Block IS; Lots I-II, Block16; Lots 1-27, Block 17; Lots 1-33, Block 18; Lots 1-16, Biock 19; Lots 1-38, Diad: 20;Lots 1-24, Block 21; Lots 1-43. Block 22; Lots 1-31. Block 23; Lou 1-51. Block 24; lots1-21, Block,~; lots 1-2l, Block: 26. Settlers Bay Subdivision, Unit NlI. 2. accordiIYi toPW No. n-11, Palmer Recording Dislrict, Third Judicial District, State of Alasb; andLots 1.:5.Block H; Lou 1-8. Block f. Settlers &y SubdivWoo" Unit No. 2, ac:cordinil toPlat No. PIII177-18, Paitner'Rcconllng District, Third Judi<:ia1 District, Stau. of Alulca.

1. The ArchitcctUl'al Control Committcc will conduct periodic mcetinp, open 10 wi memberafor testimony to review and approve 01' disapprove building applications. lIS needed,

A. Notices of meeting dates and location will he posted III the Settlers Bay P05t Officelocated at Mile 8 Knlk: Goose Bay RoIId on the Public Bulletin Boerd.

B. Applicants have the rlaht to appeal to the Settler Bay 1I0A Board of Directors of anyadverse decisions or recommeedanons of penalties.

2. Prior to the start of excavation or construction, the Arcbitcctura1 Control Committee musthave approved lIIl"Application for Plan Approval» of tho project to be buill

3. The UlIC ofT- t 11 sidiD8 on the front of II bouse Is prohibited; tap aiding or other qualitysiding is acceptable.

4. New homes should have stagsCl'Cd rootlinc:a u.nd be «>mplimc:ntaryU,d~gn to other homesin tbe area.

5. Landscaping with I minimum of pJarned and maintained grass or other approved landscapingplan covering all 8ICIl5 visible from the road must be completed within 1 year of firstoccupancy.

6. Outbuildiop, f=ca and odlcr struc:tures must be complimentary in dc3ign.

7. On satisfitetory compktion of lhe proj«:t and deli very of nccc:uIU}' pcrmiu end Inspections,the Architectural Control Committee will Wile 1!I "Certificate of Compliance with SentersBay Building Rules".

8. Failure to obtain a "Cmtificate of Compliance" prior to fim occupIInCY may lead to sanction!being taken against the Owner !Builder.

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la ICCOfd~ wilh ARTICLE IV. Section 6 of the. R~.ted Dec:lanlion ofC~nt •• Conditions and RcstriclmllJ for Satl.:rs Uay Subdi~'ision.Units No. t and 2as n:cocded Octo!>« 2S. 1996 in R<>OIo&10" rase IIH orIn.: Palaua' ~dins Dj"riQ.lhe Mbitcctu(ll Conuol Commincc may "frem time 10 lime &lid ill ill sole diKfc:tion.adopt. amend and repeal by unallimous vole, ruJe5 IUld rCKUlalicms.. includinS a fee fOf" iuCOth.. 10 be known u the wArchitectlJl1ll Comrol CommiUflO Rules"; the followingllr:guJation i.heteby adopted:

I. III ank!r 14 ma.inWa property owners riglUs and to maintain. high qualityof.ac::Mhctic: valua,. livins c:ondilions &lid property VI!UC1 within saidlUbdiv{aioa(a). lbe ArdUtedtKai COlUrol Commiltcc may impose and levyreuoaabk fioc(l) DOl to W:et.d ON: lhouund dollan '($1.001100) perinfraClIoa upoa individual loIs1o\ll1lCl'$. The purpose of $Ucb fine( s) is 10a.rOl"CC compliaMG wilh lhe pcovisioru <;If the Coven.nll prrnOU!ily"'CId. Prior 10any IUd! finc(a} bcinJ imposed, the Atchllctcunl ControlCommiItcc will, in wOlins. slve.he 101owncr(s) oolicc Dflhc violation(s}and • rcuonab1c period of time 10 COQ"a:a the I&JIIC.

Enforccmenl 0( uid finc(l} will be aecomplilhcd in accof"dancc wilhAniclc [V, SeCIioa 8 of said Covenants and further. sai~ fine(s) wiU be$Ubjea 10 Article IV. ScOClioll9 of said COVClllntl.

2. PriOf' &0 -.anactioa of. home ill Senten BIY Subdivisi$n. the owner orbuild« ••••••• cocnpIy whh tho Alehitcctural Plan. SubmituVCcrtiflcalioni'roc:Qtuta IS ICI fanb in Iha auadIcd forms IS they may from lime totimc bel am.ctIded.

l. At the lime of COftIpletioft of the 1tJUcttR, • Certifu:atl! of Compliancewilb cbo CoVCAlJl&I, CocIditions and RestrictiollJ muse be, obUincd io thefunn ItUICbed IS ii_v fi_ limc to lime be amended. .

of.

6.

0uIbuiIdinp. iAclwins. IIut DOt limited. to ~ prales.pecabouMI. II&orlgc 11I4" barns, IaUnal, or &lam balk Ucililia NY 110Ibe ~ ualCA i1 is .pprovcd by .he ACe tIIld must bive acompIcCcIIICXUrior complcmcllilfy 10 tbc Residence', extm.

Ally dwdlill. Of out bulkfina uncter COft$CnaCIIonwit be cOmpleted withitsOM (I) year &olD the date of wrliletl approval obIained fi'ona lbe ACe. AsIaaIe t.veI one-story dwelling mull be loot" complete both ClCtoriQt &AdioIcrior, It Two-llOfY. In-Icliel., or split-level dwelling ~ be 100 %compIae GO tbc cxrc:rior with II leas& 70"~ of the inlenor complc:tdyfiniahed.

7. All dweIIinp dtaU be illlwmony as .he &0 CSfcmU desijlfl and locaIionwid! uroundios ItrudtUrQ and IOpog1.phy. This .hall include tbeexterior painl c:oI« that &hall be approved by the ACe in. cinh lone colorpilld. '

I.

9. 10 ~ with ARTIClE V. Section 2. Subp&rlgJlpil l No haUer,mobiletao- Of moduIv 1IOmca (prCoCOlUlIUl:t¢ homc:I~. even if on •pcnMnCAl roun4&lioa. .11 be permanently placed, !"Iintaincd. {I'0CQIpicd OQ lilY &01. '

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10. Dcchtanl. Trillium CorponJioll,. 10 clarify ill role. its ~ .MIor.wsns will app<lint mcmb<::n of II..: ATchitcaW&! Conuol Commi"ce.

II. Neither ,he ArdIileaunl OOOfrolComminee nor &I1y membc:( thereof 111.I11be liable (0 any Ioc owner CH" project comminee for any damage. loss orprejudice suffered Of claimed on account of (a) .hc &wm~lIl of any plans(b) the COC\Struaiol\ 0{ p«fnrm.n.ct:1>f ~ny -...oJI. Dr {c) ,be ac.clopmau ocmanner of development of any 101

Accofdill3 10 luticlc VI, S~ion 6, I Metody K. Millcr-Slandacd. Ch.oinnan of IheAn;hilCCluraJ Control Ccmmiuee. hereby ccrlify lhal rbese rules and reguialions b.aIlCbeee u•.••nimou ••y adopIed by the Board of Directors of Sallcn BIY Owners Auociliioo .and unanimously adopted by the NchilCCiUCaJControl Commatee /lI.·.tytr 11di1"_.hJd/l.-...LSlate of Alaskl J

IThird Judicial Di.I";", 1

Subscribed and .worn 10 before me /iELct'y f Iiud Snv/lfuua /tJl ...•••yof ~••• d,1000.

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~)I ~70ra:.[8191181\' prOV~ded. hOiite"ei'> til."ii;i. 01' ~i'ii~ii~tOf'any Lo~~~r.vant to a tor.cl~.u~e Qr athec pcoee.alo9 in lieu ~heceQt.of anv fir-at aortiJa.,eor; d•• d of tcuat ahall outtinqulan the li.not .ueh •••••••• nt as to pare.nt. which became due pcior; to such•• le or tranlilter,but not as to any •••••s.lIenta thereafterbecoalnq dlle.

UTICU\"

LAXD ~.I'rCATXO. U.. AND•••TalCT1Ya COYSKLWr.

S.~tiQn 1. All land withtn Sattler's aay village n••baen elas.flied by permitted uses. The pamltted uses and•• cback. for; •• ch permitted use c14.aification ace thereinpcovid.d.

Section 2. 51001. falllly Besidentldl.. Lots Onethrough thlctr-four fl-)4~ ot Block On. (II. Uni~ One (1) andLot. Thr.e through Twenty-five (1-25) of Block Two (2). Unit One(i). and Lota Flve throuqh Twenty (5-20) and Lot. Twenty-nlnethrough Thirty-nine (29-39) ot Block Three (3), Unit One (I),and Lot. One through Five (l-S) or Block Four l4), Unit One (11.and Block Six (6). Block Seven (7). BlOCk Eiqht ta). Block :Hlne(9) and Lota One through Twenty-si~ fl-26) and ~ta Thirty-twothrough Fifty-one (12-5l1 of BlOCk Eleven (Ill. and Lots Onethrough Eight.en (1-18\ or Block Twelve (12) and, Blocks Thirteen(lJ). Fourt ••n (HI. Fletcen (15). Shcteen (16)., seventeen (17).El9nt. •• n (IS}, tHntat•• n (lI.'ll. Twenty (lOl. Twentv-omi! (2l).Tventy-two 1221. and Lot ••One throu9h Thirty-one. (1-11) of BlockTWenty-thre. (2]1. 8lock Tw.nty-t~r •• A (2l A), Block Tventy-four (24). Block Twenty-tour A (24 AI. Block Twenty-five (25)and Block Twenty-.ix (~61 •• 11 In Unit Two ~2). Settler'. BayVillaqe. Lots of this clas.ltication shall b~ u,ed tor sin91.1•• l1y homes, includinq accessory buildingsr subject, however.to all of the tollowinq licitation& and re$tclctlons;

(a) No mJildinq ahall be located on any lotnearer tnan twenty-five. (25) t•• t to the front. lotl1.ne,or n••".rer than twenty (lO} teet to the rear lotlin •• , .xcept that corner lot. shall nava a buildingeet-back ot titteen (lS) feet tram th.' street side lotline.

(b) An &c'",e•• ory buUdin", i. daUned as •.detached subordinate buildin9. the use" of which tscu.to~I'ily incidental to that ot the .ain buildings,such as private 9araga 01' garden tool atoraqe .hed.

(c) "0 i.pravement. excavation Of other workwbich in any way alters .ny prlvate are. trom itsnatural or improved state •• exi.tinq ~n the date suchpr;lvate ar •• wa. fir.t convayed 1n t •• ·bV qcantor toan owner ahall be .ad. or done .xcept upon strictcoapliane. ~lth and within the reatrictions ot. theprovisions of ~reicl. VI.

(d) The private area ot ••ch lot:shell be usedexclualvely tor .i"91e I•• lly residential purposes(includinq its .ervant. and non-payin9'transient

CJUe.hJ provided. however, that notllinQ in thisparagraph {d) shall be d •••• d to pcevent:

(1) Any arti.t, erti •• n or crart ••• n (ro.pursuing hi. arti.tic callIng it such artist,srtls.n or cr.tt ••• n _aaou ••• suCh private ace.toe re.idential purpo ••• , 1••• lf~.mployed .n4ha. no .aploye •• working In euch private ace. anddo•• n9t. .~1(.rtl•• or Qft.l'.~Y product or WQt-1tof ut for •• le to th. PUblic upon or fe-c. sueRprIvate ar ••••

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.-"ur.·lbe h••.•tl§,¥-*": ..• riy tot ero. U •• toH_ by the O>Inei:- th.c'.of;- ~ubieet. however, toall of the provisiona of the Settliar',. Bayvlllage ~e.trjctlona. '

(e) each pl~lvate area an4 any and elliaprov ••• nta fro. ti •• to ti•• loc.ted ~er.on. ahallbe •• intsined by the OWner thereof 'In 900d conditionand repair.

(f) No noxious or attenalve activity .hall bacarried on upon anv lot. nor &hall anything be donetharean which lIay ba or .av bacolll.~Ianui ••nce otellu.e Llnr.laaamab),•••• b••rr•••••.•nt. cU.tLlrbanee arannoyance to ocher owner. in the e"loyaent of theirlata. No repair or ce.taratian ot;.ny lIotor vehicle,boat. trailar. aircraCt or other v.hicle ahall bepe~ltta~ on any portlon of any lot .xeept tor••• rqancy repairs thereto and then;only to the e~t.ntnece.sary to .nable aovemant thacaqf to a properrepair tac1lity.

(c;) No do ••• tic ani.ala or fowl other than are••onable nuaber ot generally rae~nl&ad ho~ •• oryard pet$ "hall be 3aintained on any privata ar •••None at the .nleal. ahall b. peraitt.d to run at1arqe. .

(h) NQ .1q1l or billboard. in~ludin9 bLlt wit:hautliwf,tlltion. cOllllll4lrcllll.poUt.ical ana simIlar .19nash.ll be arected. poatad, pAinted or di.played LIpan.ny private .1' •••• e.capt;

(11 Such 819n~ as aay ~ required by 1eqa1procaedlnqa.

(2) Reaidential LeI.ntitlcation aign. at •coabinad tot.l face lira. of t~ree (ll square taetor la.& (or aach residene.. .

(1) OUring the tl•• of conatructlon of .nyr•• idanea or other iaprove.ant. jobla.ntitic.tion .19n. having a'•• ~l.~_ race araaof .1. ". equal'. fe.t per 819n and of the typeuauAl1y ••played by contractara oraubc:ontrac::tora.

(4) 519ns .dvertl.inq the property tor•• la.

(i) No houeo trail.r, .obil.,hoae, paraanenttent, or at.ilar facility or &tructu~. shall b. placedon lany lot except. to aerve &S a single taillily d\lelling~urlng th. construction at a p.rD4nent ho •• , and saidhou8e trailer, aobile hoa., permanent tent or .i.ilarfacllity or atructure is to be removed upon c~plotionot the per •• nGnt dwelling. In no event shall .aidhOLla. trailer •• obile ho ••• ·p.~n.nt tent or aiailarfacility or atructure at aueeesaion at such 5t~ucture.r••• ln on any lot tor 801'. than tvolv. ell) aontb ••

i'(j} No acetl••ory atructure. 'Ie" 'buildings shall

be eon.tructed. pl.cad or aaintaln.d upon anypr!vatoare. prior to th. construction Qt the a.ln atructuraof tbe r.aidenc., provided. bov.Y.~. that theproviaion. at thia paragraph eballnGt applv tota*PQrary construction ahelter. oct.cillti ••aalntelned durln9 and u.ed ~~clusl~.lV In connectionwith, Ute eonatnu;t1on of the •• in :atNcture ot ther.aidenea. '

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"_(lI;t'Th~O\,fflU.h~U.n"t b41.lM~itbd tocc:uqil.tdv clur ".loteR ioIhlch atawUn<j tee •• of aiuand beauty e~lst. Space »4ybe cleared to prQvlde forconstruction and tre •• may b. thinned eo long a. thenatueal be.uty .utd •••••t.h.tic vahle or the natucal(0114q& ia retained.

(1) All 94rhilg. and trash .hall ~ pl.c •••••uldkept In oov.red container. 6n~ ahall not be permitt.dto r.~.in upon any priv~te are. tor any period at tl~e1n Cll<C'U'"or th ••.t normally requir'ld tor reqularqarbaqe diaposal.

I~) ~here .hall b_ no e~teclGr rire. what-aoever.~c ••pt barb4cue Clcas contained within raceptacla~therefor.

~~. ~Al and Strip Cgmmercial BU§inessUiAtxi~. Let Thirty-rive {JS}. Block Ona 11), Lots One (1).Two {2)f and Lots Twenty-six through forty-seven {26-471 otBlock Two (2), unit One ill. Lots One through four (1-4) AndLata Twenty-one th~ough Tv.n~y-eiqh~ [21-281 or alock Three (J).Unit One (l). lOts Six through Sav8nteen(6-11) at Block Four(4). Unit One (1). Lots of this classification ara intendedspecifically lor those areaa aurroundinq tn~era.ction. ~h.r.peraonal services. conveniences. goods and auto related servicefacilities Are desirable and appropriate land uses. t~tg ofthis classification Are subject to the tollowing:

(a) Any lot use. OC de.iqnated Cor co~ecci4Lue. 5hall not be used so as to permit sxcessive noisecr sllto;;e and no unai9btl.y aggregation at commercial.quipmen~ shall be permitted. "£xcessive is definedtor these purposes ati 4 degree e~ceeding that9anerated by USRS peraltted in the di5trict in theircU8to~4ry ~anner of o~rA~~on or to a deqre. injuriousto the public health, safety, w~lfare or convenience.

(b) Building. Shall be set back. ainimum oftwenty-rive (2~) feet tro. tront lot linea And twenty(20) feet troa rear lot 11n •• and a minimum at ten(10) teet troa side lot line». except that corner lotashall have buildin", "lOt-back of titteen {l:ll teet. (cora

the atr.et &ld. lot line.

Ie) No hou •• traIler, mobile ho.e or .i.llerfacility or ~tructur. Shall 0. placed on Any lot.except to carve aa a retail display which would berequir.d in the normal oparation of an establishedbus!n••a. In nO evant .ball ~.ld nOU5. trailer,.obil. haa. or si.iler Cacility or .tructure be u ••d.s a prIvate residence.s.gtlon t. CompIlloc. vith Ggi.rnmlnt B'guirpa,nt ••

Nothih9 contain.d hertin &ball r~litve t~. OWner ot theobligation to co=ply ~lth applicable qovernmtnt rtquirements nowor her.atter in effect. '

anlcuc VI

Section 1. Each 8tngle ra.tlY're,iatne. to beconstruct.d in Bloc~ Six (6). Lot' o~~ ~rou9n Tu&nty-.ix (1-26)In Block Sev.n PI. Block. Sixte.n (16) arid 1I1oc:k. Tw.nty-.ix (26)oC Unlt TWo (21. Settler', Bay Villag_ shall contaln a einimu.ot l,4QO square feet ot living area. Each alngla r•• ilyr•• i4.nc. to g9 ~on.truct.d in Block One (11. BlGex TVo ill.Ilock Th~•• el} Ind BlOCk Your {.) 01 Unit On. (1" and Lat.Tw.nty-.evln (l7) ttlrouqh Sixty-nln. (21""69) in Bloclc:.Stven (7).!lock Eight through fiftoen (8-15J. and Block Sav.nt •• n through

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:;~~!r~t!V:l!:!~5!;ot~~!t5~~!i~:.!~t!~·i~:i::YCI~!!~.9:eitller attached to or detachad lro•• the aain litructur. otr•• idenc. i. not to be construed aa livinq4rea.

S.,\iOD 2. Ko bulldlnq. t.nc., wall or other.tructure shall b. coDanead, erect..d or .aint.ained upOn thepropertie., nor chall any exterior .d~1tlon to or chang. oralt..rat.lon th.r.ln b. made until the pl.n ••·.nd .pecificationaehowl09 the nat.ural kind, shape, height •• at.erlal. and locationsot the •••• shall have been 5ub.itted to And approved 1n wrltin~•• to haraony at external des1qn and location in r~lat!on to.urrounding atructure. and topoqraphy by the ArchitecturalControl Co~ittee which is composed ot three {lIar morerepreaentatlve. appoint.ed by Trilliua coqporation. aa auccessorto S.ttler'. Bay Propertt.~, Inc. At any ti~a the then recordQ\m.ra of 1I.".nty-tl". ilercent (7!>\> ot t.he lote anAll have thepover throu~h a duly record.d written instru~ent to change the•• ab.rehip or the com.ltte. or to withdraw from the committee orr.etore to it any ot lte power. and duties In the evant MAidcoaaltt.e t.il. to approve or dl ••pprov. BuCh de.19n andlocatIon within twenty (20) days after SAid plana andapacirications have been submit.tea to it, this article will b~d•••• d to ha"e be.n tully co&pllad vith.

Section 1. No buildlnq .hall be erected, placed DCaltered on any lot, part or portion of the property without thein.tall.ticn or •. p.~anent foun4atlon. All conatructlon plan •••pecifications .nd dwellinga will be required to ••• t atandardPltA building cod... One .et of plans a. finally approved ahallbe retainad and aaintained by the A~chit.ctur41 ControlCoamitt.e 68 a per~anent record.

Section S. Ie within the t~.nty (20) day periodr.t.rred to tn Section 2, the aeabera of the ArchitecturalControl committe., in their sale dillcret10", un.nt.oualy tlndthat tha proposed work would, (or any reason whatsoever beInco~patlble with Settler'. Bay Villaqe, then the co.-itteaahall not approve the plans. drawing:. and '.paciticlleionaaubaltted to It and shall so notity the owner concarnsd invrlting .etting forth the reAsonS tor auch disapproval.

SectiOD ~. The Architectural control Ca •• ltt ••• hall.e.d tro. time to ti ••• a nece.aery to prop.rly pertor. it.dutl.a hereunder. The vote or written con •• nt of any two {~l•• ab.r. ahall constitute an Act by the Architectural Controlco •• itt.e unless the unanimous decision ot Jts me~.rs i.othervl.e requIred by the Settler'S 0ay Village Restrictions.

~1~- Tha ArChitectural Control Comaltt •• may,tro~ tl.~ to tl~e and 1n its sole d15c~etlon, adopt, a••n4 andrepeal by ~nanlmous vote, rule~ and ~equlations, includln9 a (aetotit. costa, to b. known as "Architectural control Co~mi~te.Rule.,· ·",hich, amon9 or.ner thln~., interpret or impl.ment theprovl.1ooa of Article V, Section. Two (1; ,and Thre. (1). A. copyot the A~chitectural Committe. Rul •• , .a they may tro. tl •• toti •• be.adopted, amended or repealed, csrtltl.~ by any lDe5ber ortha Architectural Control Co~ittee, 5hall be recorded and ahallth.reupOn have the s~lDe to~ce a& It it vece part at theSettl.r~. 64V Vill~q. Ra&trictlon&.

. ~20-1. Neither the Architectural Controlco.-itt •• nor any .e~.r thereat ahall b•. liabl. to anv own_r orproj.ctCommitte. tor any d.m~9., 10•• or,prejudic. sutt.red orclai.~ on account ot (4' the approval or· any plane, drawln9_and .p4c!tlcatlon., Whether or not d.eective: (b) theconatructlon o~ pertormance of anv uork. wnether or not pursuantto approved plana. drAwing. and specilications, (c) the

Ii devel~p ••nt or ~anner ot d~v.lop~~ ot a~y property within~: Settler·. B.y VillageJ provided, haw.ver, that .uch ••&b.r h•• ,with the actual Knowledga po£se~5ed by him, acted in good leith.

II

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~~-1. Hoi•• Cpntrol. Any .oto~l~.d vehicle. or••chanical equipment whIch create annoying or undesirable nols~sin the neighborhood 6hall not be operAted ~lthln theaubdlvl.ion. The operation of ~torcycl •• and/or motorbi~ese~cept •• tr.naportation to Ind tro. a place ot re.id.nca ahallnot b. pe~itt.d. Snovmobil•• on any path., trails or road~within the SUbdivision $ha11 not be pe~itted except whee.d.a19nated and approved for such U~ ••

Se~ti9n i. R.,r •• ~lon TrAil.. The perl.at.r of theaubdiviaion deaignated a5 • pedestrlan e••• ment on the rucordedplat aapca) 1& dedicated to the buildIng and use of CrOpBcountry .kl trails and hildng trails and shall .not be used torany othar recreational purpose ••

Section J. EnCDrc,aent. th. A••oci.tion O~ any Ovne~shall have the riqht to enforce. by any proceedlnq At law or 1nequity, III restrictions, cQn~itionB, covenanta, c.a.~.tlon.,l1ene ana ChAr~ea no~ or the~.alte~ i~posed by the provision_ otu,l. DeclarAtion. The tAllu~e to entorce ~he covenant orruatriction herein con~ained 5hall in no event b. deemed awaiver of the right to do so thereattec.

Section ~. Sevcrabllltv. InvalIdation of any on. otthese covenants or restrictions by judgment DC eDuct order Sh4llIn no wi •• effect any other provisiona yhich shAll remain infull torce and effect.

~~. Amondmcota. The •• Covena~t., Conditioneand R.atrictions .ay be am.nd.d. aedified or revok.d in AnyrQ.pect tram time to time by Declarent prior to'the time ot thetlret conveyance ot a Common Are~ to the O~nd~8,A5»oclatian.Sub.equent to that ti~e. the Covenants, ConditIons andRe.trictions may De 4cended, aodiCted or revoked by a vote ofthe •• aber. at the Association who own &.v.n~y-tive PQ~cent(75l) of the Lots In the project.

s.ettgn 6. fho.edQeyelgpmont. It t. cont •• platedthat the con.truction and davelopsent ot Settler'. ~YSubdivl.1on •• y occur in ph •••• 1 how.ver. no ••• u~.nc.s are ••d.or 9iven that .11 the ph •••• will be undertaken or completed or,it they are undertaken ~nd cospleted. when such completlon ~111occur.

Acco~dtn~ly, any tl•• attar .eventy-tlve percent (7~')of tha lot. in Units One 11) and Two (2) ot S.ttler'. BaySubdivi.ion have been conveyed to O~ner8, said Owners ~ay calltor a .peclal meeting to nomlnate and elect new.dlrecto~5 and to.onage the o(foi~s ot the Association os p~ovided in thM By-Law.,provid.d. however. that nO Act1on~ •• y b.itAken orr•• olution. a~opted whicb in any way would O~ CQuid el} preclude.n Ownar of a lot in 6ub6equent ph&sea or development trambccoain9 •• ember concurrent ~ith their beceminq lot owner. a.herein contemplated: or 12) intert.ce with or restrain Declaranttro. co.pl.ting the remaining pha.e., including the right otDeclarant to .oke Change. ot whaeev.r nature in any aubsequ.ntpha •••

SectIon 1. CQnyeYlnce or CgGCQD arOA.~ DeclarAnt, atanv e I•• amltroDa time to time •• y, at ita lIIola ,dhcr.tion andoption. but upon ouch ter •• and condition. a••• V be &gr •• d ~ponwith the A•• oelation, .ell. convey and tronst.r:.11 or anyportion ot the Common A,e •• to the A••oclation: ,provided.however, that the Aaaociatlon auot accept the tender of suchconveyance and the real ~ro~r~y d•• cribe4 ther.in and acceptthe I ••, a. p.rt of the Co ••on Are. if auch tender i. olfered.nd a£d. fr•• and clear ot liens and encumbrance;.

IN "~TH.~&.,~QF ~ ~{!-J&~",\?OAPORATZOH. •• .ucc ••• orto Settler'. hypropertl ••• tnc~" baJi'"tt.au.ed th18Alllanda.nt andR•• tat •• ent to b4! signed by it. duly authorized oUicer thi8....-i.5-.. day ot" {r:.j!!h~/ • H~96. .

TRtUl'UM COaPORA'I'IOY. •• .".cc••• orto Settl.r'. 84V P~opertl••• Inc.

STATE or WASHINGTONcounty ot h';:iJ'lir4dl

THIS IS TO CEltrtFY tbat on thi. ~ dAY otC'I"I-hdl--C ,1996, ~tor. _. the undera1qned, a Not••rv pUblicIn and for Washington. puaonally .p'pall~ed Tir II'.;~·!~. : 'f:; ,to ••• !<nown",nd Ic:no~nto ••• to be the . r, f"cc jf-_,_i',_'" ~of the corporatlon na•• d in the foreqolnqnatrument, lln~ ~acknowledged to me that ~ had, in ~ o~tlctal CApacity.for •• ald, ••• cuted the fo~.qoin9 inatrument .a the te•• act andde.d of the .ald corporation for the uaea and purposes tberein.~~d, .

•••

WITNESS••V hand and ot(ieial a.al the day and year inthis certificate first above IoIrit.t.en.

IooOIADWIl\A.C,t•.1101."'"'~'O'<c••.•~~ •.•oM,lOooMrAOgoN".....I .•••••.• ,n Jaw

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