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HomeMy WebLinkAbout014.02 - Appendix F.2 - Declaration DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 1 After recording please return to: Laurel Meadows Neighborhood Association, Inc. P.O. Box 11388 Bozeman MT 59719-1388 Declaration of Protective Covenants, Conditions and Restrictions For Laurel Meadows Subdivision DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 2 Declaration of Protective Covenants, Conditions and Restrictions for Laurel Meadows Subdivision This Declaration of Covenants, Conditions and Restrictions for Laurel Meadows Subdivision (“Declaration”) is made this ________ day of ____________, 20___, by 8FC LLC, a Montana limited liability company (the “Declarant”). WHEREAS, Declarant is the owner of real property situated in Gallatin County, Montana, more particularly described in Exhibit A, attached hereto and incorporated herein. The real property described in Exhibit A shall be referred to herein as “Property” or “Laurel Meadows Subdivision;” WHEREAS, Laurel Meadows Subdivision is approximately 40.82 acres consisting of developable lots, city park lots, open spaces, a conservation easement, wetlands, ditches, easements, streets, and rights of way. The Property will be developed in phases. WHEREAS, by recording this Declaration, Declarant intends to create a general plan of development for Laurel Meadows Subdivision. More specifically, this Declaration contains the minimum requirements for how the real property within Laurel Meadows Subdivision is to be designed, developed, landscaped, used, maintained, enforced, and paid for. This Declaration also provides for the overall administration, operation, and preservation of the Laurel Meadows Subdivision and the improvements thereon, and the establishment of the Laurel Meadows Neighborhood Association, Inc. to administer and enforce the Declaration and other governing documents referred to in this Declaration. NOW THEREFORE, Declarant hereby declares that the Laurel Meadows Subdivision, and all real property and improvements therein, shall be held, sold, conveyed, mortgaged, encumbered, leased, rented, used, occupied, sold, and improved subject to the declarations, limitations, covenants, conditions, restrictions, and easements contained in this Declaration, all of which are imposed as equitable servitudes pursuant to a general plan for the development of the Laurel Meadows Subdivision and for the purpose of enhancing and protecting the value and attractiveness of the Laurel Meadows Subdivision, and every part of it, in accordance with the plan for development of the Laurel Meadows Subdivision. WHEREAS, all of the declarations, limitations, covenants, conditions, restrictions, and easements shall constitute covenants running with the land and are binding upon, and inure to the benefit of, Declarant, the Laurel Meadows Owners Association, Inc., and all persons having or acquiring any right, title, or interest in or to any real property within the Laurel Meadows Subdivision. This Declaration shall apply to all the Laurel Meadows Subdivision, and to all real property and improvements placed or constructed thereon or therein and shall be in existence in perpetuity unless amended or terminated as set forth in the Declaration or by operation of law. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 3 Said declarations, limitations, covenants, conditions, restrictions, and easements shall be as follows: Article 1 DEFINITIONS Capitalized terms shall be defined as set forth below: 1.1 Act: means the Montana Nonprofit Corporation Act, § 35-2-113 et seq., MCA, as amended. 1.2 Accessory Dwelling Unit: an accessory living space on the same Lot as a single- family residence, whether attached or detached. 1.3 Affirmative Vote of a Majority: means and shall be achieved on any particular matter if (and only if) all of the following occur: (i) before the Turnover Date, the Declarant votes in favor of such matter, and (ii) the Association receives the affirmative vote of at least a majority of the votes of the Members present at a meeting or by written ballot (as described in more detail in the Bylaws). 1.4 Affirmative Vote of a SuperMajority: means and shall be achieved on any particular matter if the following occurs: (i) before the Turnover Date, the Declarant votes in favor of such matter, and (ii) the Association receives the affirmative vote of at least 75% of the votes of the Members present at a meeting or by written ballot (as described in more detail in the Bylaws). 1.5 Annexed Property: has the meaning given to it in Article 11. 1.6 Articles of Incorporation or Articles: means the Articles of Incorporation of the Association as filed with the Montana Secretary of State, and any amendments, additions, deletions, restatements, or supplements thereto. 1.7 Assessments: means, collectively, Common Assessments, Sub-Association Assessments, Special Assessments, Default Assessments, and Community Transfer Assessments, as more particularly described in Article 4. 1.8 Association: means the Laurel Meadows Neighborhood Association, Inc., a Montana nonprofit corporation, and its successors or assigns. 1.9 Board of Directors or Board: means the body responsible for the operation and administration of the Association, as more particularly described in the Declaration and Bylaws, and who shall have such privileges, powers, and rights as our set forth in the Declaration and Bylaws. 1.10 Building: means a structure containing a single-family residential dwelling, multi-family residential dwellings, Accessory Dwelling Unit, garage, Outbuilding, and other similar structures located on a Lot. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 4 1.11 Bylaws: means the Bylaws of the Laurel Meadows Neighborhood Association, Inc., and any amendments, additions, deletions, restatements, or supplements thereto. 1.12 City Park(s): means any City Park shown on a Plat for any phase of Laurel Meadows Subdivision. The Declarant reserves the right, without approval from the Owners or Members, to create additional City Parks within the Property, to dedicate such additional City Parks to the City of Bozeman, the Owners, and/or the general public; and/or to convey such City Parks to the City of Bozeman. Additional information regarding the City Parks is included in Exhibit B and Exhibit C. 1.13 Common Areas: means the areas that are either owned by the Association or required to be maintained by the Association, temporarily or permanently, and includes without limitation the following: (a) The City Parks, until such time as the City of Bozeman assumes responsibility for the City Parks; provided, however, the Declarant and/or Board may, with the consent of the City of Bozeman, provide additional maintenance to or construct, maintain, repair, and/or replace Improvements in the City Parks above and beyond that provided by the City of Bozeman; (b) Open Spaces, including the paths and trails, ground cover, landscaping, irrigation systems, lighting, and other Improvements within the Open Spaces; (c) Sidewalks adjacent to City Parks, Open Spaces, and along Laurel Parkway, Donner Drive, Pond Lilly Drive, and West Babcock; (d) Other common sidewalks not otherwise required to be maintained by a Sub-Association or the Owners; provided, however, the Association may agree to maintain common sidewalks with the Property upon a vote of the Association; (e) Stormwater Facilities as described in Exhibit D; (f) Common landscaping, common irrigation systems, common landscape lighting, common security lighting, and subdivision signage and signage lighting not otherwise required to be maintained by the Sub-Associations or Owners; (g) Mailboxes and dumpsters not otherwise required to be maintained by the Sub-Associations or Owners; (h) Roads not otherwise required to be maintained by the City of Bozeman or by other Sub-Associations or Owners; (i) Parking Areas not otherwise required to be maintained by the Sub- Associations or Owners; (j) Boulevard trees, boulevard landscaping, and boulevard irrigation not otherwise required to be maintained by the Sub-Associations or Owners; and DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 5 (k) Any other areas within the Property which are generally considered to be for the use of all Owners, as determined by the Board from time to time. Except as otherwise required by the City of Bozeman, before the Turnover Date the Declarant may add or delete Common Areas by amendments to this Declaration. 1.14 Common Expenses: means all actual or estimated costs, expenses, and liabilities incurred, or anticipated to be incurred, by or on behalf of the Association for the following: (a) Regulating, operating, administering, and managing the Property and the Association and expenses for the benefit of the Association as a whole; (b) Acquiring, operating, managing, paying taxes and city assessments on, maintaining, repairing, replacing, and improving the Common Areas; (c) Procuring and maintaining insurance for the Association; (d) Levying, collecting, and enforcing the Assessments and other amounts owed to the Association; (e) Administering and enforcing the Governing Documents; (f) Incurring professional fees to assist the Board or DRP in performing any rights, privileges, and powers; (g) Performing any and all rights, privileges, powers, duties, or responsibilities expressly or impliedly permitted by the Act or the Governing Documents; and (h) Any other costs or expenses reasonable or necessary to perform the duties and responsibilities of the Association or Board or to further the intent and purposes of the Governing Documents. 1.15 Construction Activity: means any site preparation within a Lot; the construction, reconstruction, repair, replacement, remodel, painting or repainting, staining or re-staining, etc. of the exterior of any Improvement, landscaping of a Lot or any portion thereof, and landscaping of a boulevard or any portion thereof if required to be landscaped and/or irrigated by a Sub- Association or Owners. 1.16 Declarant: means 8FC LLC, a Montana limited liability company, and its successors and assigns or any successor, successor-in-title, or assign who is designated as the Declarant pursuant to Article 11. “Declarant’s Affiliates” means any members of the Declarant or an entity created by one or more members of the Declarant for the purpose of purchasing, holding, developing, and/or selling Lots and/or Units within the Property. 1.17 Declarant’s Special Rights: has the meaning given to it in Article 11. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 6 1.18 Declaration: means the Declaration of Protective Covenants, Conditions and Restrictions for Laurel Meadows Subdivision, and any amendments, additions, deletions, restatements, or supplements thereto recorded in the Public Record. 1.19 Design Review Panel or DRP: means Laurel Meadows Design Review Panel, as more particularly described in Article 8 and the Design Guidelines, who reviews applications for Construction Activity pursuant to the Declaration and Design Guidelines and either approves, conditionally approves, or denies the same. 1.20 Design Guidelines: means the Architectural Design Guidelines originally adopted by the Declarant to regulate Construction Activities and the construction, maintenance, repair, or replacement of Improvements, and any amendments, additions, deletions, restatements, or supplements thereto. Before performing any Construction Activity, Owners are responsible for obtaining from the Association the most current Design Guidelines and for complying with Article 8 of this Declaration. Notwithstanding anything to the contrary stated in the Declaration, before the Turnover Date the Declarant and the Declarant’s Affiliates shall not be subject to the DRP or Design Guidelines. 1.21 Good Standing: means that an Owner is not delinquent in paying any Assessments or other amounts owed to the Association. 1.22 Governing Documents: means the Plat(s), Declaration, Articles, Bylaws, Design Guidelines, Rules and Regulations, Park and Open Space Maintenance Plan, Storm Water Management System Operation & Maintenance Plan, Laurel Meadows Wetland Mitigation Report, and resolutions of the Board, and any amendments, additions, deletions, restatements, or supplements thereto. 1.23 Improvement(s): means without limitation any Building, patio, deck, fence, screening wall, retaining wall, driveway, pads, monuments, exterior lighting, solar panels, other structure, and/or landscaping,. The term “Improvement” shall be broadly construed to include any Improvement that is to the exterior of any Lot or the exterior of any Building located on a Lot. 1.24 Invitee: means any family member, guest, tenant or lessee, agent, representative, contractor, or other invitee of an Owner. 1.25 Lot(s): means any part of the Property designated on the Plat as a “Lot”. “Lot” does not mean or include City Parks, Open Spaces, or Roads or Streets. 1.26 Manager: means the Board of Directors, a management entity, or other person or group of persons retained or appointed by the Board for the purpose of conducting the day-to- day regulation, operation, administration, and management of the Property and the Association. 1.27 Member: has the meaning set forth in Section 3.2 of the Declaration. 1.28 Open Space or Common Open Space: means any part of the Property designated on the Plat as an “Open Space”. The construction of any structure in an Open Space is DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 7 subject to Exhibit C. The Board shall have the authority to promulgate Rules and Regulations regarding the use of Open Spaces. 1.29 Outbuilding: means structures, such as a shed, barn, shop, or detached garage, on the same Lot but separate from the primary residential dwelling(s) located on a Lot. 1.30 Owner: means one (1) or more Persons, including without limitation the Declarant, who holds record title to any Lot or Unit, but excluding (i) the Association, (ii) those having an interest merely as security for the performance of an obligation; and (iii) a Sub- Association unless the Subdivision becomes the owner of a Unit. A tenant or lessee who is leasing a Lot or Unit, or any portion thereof, is not an Owner. 1.31 Park and Open Space Maintenance Plan: means the Park and Open Space Maintenance Plan set forth in Exhibit B and Exhibit C. 1.32 Parking Area(s): means all areas designated for parking within the Property, but excludes parking areas located within a Lot. The Board shall have the authority to promulgate Rules and Regulations regarding the use of Parking Areas. 1.33 Person: means any natural person, corporation, partnership, limited liability company, association, trust, or any other legal entity. 1.34 Plat: means any plat regarding Laurel Meadows Subdivision which is filed in the Public Record by the Declarant, and any amendments thereto. 1.35 Property: means the real property described in Exhibit A, and any Buildings and Improvements thereon. 1.36 Public Record: means the office of the Clerk and Recorder of Gallatin County where land records are recorded or filed. 1.37 Quorum: has the meaning given to it in the Bylaws. 1.38 Roads or Streets: means the interior streets within the Property as shown on the Plat, but not including streets located within a Lot. The Board shall have the authority to promulgate Rules and Regulations regarding the use of Roads. 1.39 Rules and Regulations: means any rules and regulations adopted by the Board and/or Association for any reason authorized in the Declaration or Bylaws. All Rules and Regulations shall be: (i) signed by the President and Secretary of the Association; and (ii) a copy provided to the Members. Unless a longer time is stated in the Rules and Regulations, a Rule and Regulation becomes effective ten (10) days after it is adopted. 1.40 Storm Water Management System Operation & Maintenance Manual: means the Storm Water Management System Operation & Maintenance Manual attached as Exhibit D. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 8 1.41 Stormwater Facilities: means the stormwater facilities described in Exhibit D. “Stormwater Facilities” does not include the storm sewer mains, inlets, or manholes located in streets dedicated to the City of Bozeman for public use. 1.42 Sub-Association(s): means the association(s) established for any multi-family development on one or more Lots within the Property. 1.43 Trails: means those trails shown on the Plat for use by Owners and the general public, and such other trails as may be established within the Property by either: (i) the Declarant before the Turnover Date; or (ii) by the Board after the Turnover Date. The Board shall have the authority to promulgate Rules and Regulations regarding the use of Trails. 1.44 Turnover Date: means the date the Declarant turns the Association over to the Members and shall be the earlier of: (i) when the Declarant determines, in an instrument recorded in the Public Record, that one hundred percent (100%) of all Lots and Units to be included within the Subdivision (including within any Annexed Property) have been platted and sold to a Person other than Declarant or the Declarant’s Affiliates; or (ii) when the Declarant elects, in an instrument recorded in the Public Record, to turn the Association over to the Members. 1.45 Unit: means each condominium unit or duplex unit constructed or to be constructed within the Property. 1.46 Wetland Report: means the Laurel Meadows Wetland Mitigation Report on file with the Bozeman Planning Department and/or Morrison-Maierle. 1.47 Other definitions may be found throughout this Declaration and those definitions are binding upon all Owners. Unless expressly stated otherwise, any word defined in this Declaration shall have the same meaning when used in the Bylaws and other Governing Documents. Any term not specifically defined shall be deemed to have its common and ordinary meaning. Article 2 LAUREL MEADOWS SUBDIVISION 2.1 Real Property. The Laurel Meadows Subdivision includes all of the Property described in Exhibit A and Annexed Property once such Annexed Property is annexed into the Property pursuant to Section 11.2. 2.2 General Purpose. The purposes of this Declaration are to preserve and maintain the natural, scenic, residential, recreational, economic, wildlife, and wetland values of the Property for the benefit of all Persons owning a Lot or Unit therein; to establish a means to provide for and maintain the Property and Improvements thereon as a pleasant and desirable residential environment for all Persons owning a Lot or Unit therein; to permit the Association to maintain, replace, repair, and improve the Common Areas; to provide for the collection and enforcement of Assessments; to provide for the enforcement of the Governing Documents; and such other purposes as set forth in the Declaration, Bylaws, and Design Guidelines. To further the general purposes herein expressed, Declarant, for itself, its successors and assigns, hereby DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 9 declares that the Property, and any portion thereof and any Lot, Unit, or Improvement therein, shall, at all times, be owned, held, used, occupied, sold, and conveyed subject to the provisions of this Declaration, which shall run with the Property and burden and benefit all portions of the Property, the Declarant, the Association, and all other Persons having any right, title, or interest in the Property, and any portion thereof and any Lot, Unit, or Improvement therein, and their respective heirs, devisees, personal representatives, successors, and assigns and any occupants and users of the Property. Each Person who obtains any interest in the Property or any portion thereof or any Lot or Unit, or who uses the Property, by accepting or using such interest or Property, agrees to abide by the provisions of the Governing Documents and to cooperate with the Association and/or the Declarant in their efforts to enforce such provisions. 2.3 General Description. Laurel Meadows Subdivision is part of an overall development scheme and will be developed in multiple phases (“Project”). There is no particular time in which the Declarant is required to complete the Project. Declarant reserves the right to develop all and any portion of the Property in any manner permitted under applicable State laws and City of Bozeman codes and ordinances or any permitted variances or deviations thereto. This may include without limitation subdividing the Property to include single-family residential lots and multi-family condominium, townhome, duplex, and/or apartments lots, City Parks, Open Spaces, and Roads. 2.4 Applicability. Except as otherwise stated in the Declaration, the Governing Documents, and all Exhibits attached hereto shall apply to all of the Property, Lots, and Units therein, and to all Owners owning a Lot or Unit therein, and to their respective Invitees. 2.5 Exhibits. For identification and descriptive purposes, the following Exhibits are attached to this Declaration and incorporated herein as if fully set forth herein: (a) Exhibit A: The legal description of the Property; (b) Exhibit B: City of Bozeman Required Covenants, describing the covenants required by City of Bozeman for the Declarant to obtain final plat approval for one or more phases of the Project; (c) Exhibit C: Park and Open Space Maintenance Plan; and (d) Exhibit D: Storm Water Management System Operation & Maintenance Manual. Article 3 LAUREL MEADOWS NEIGHBORHOOD ASSOCIATION 3.1 The Association. An association is hereby established known as the “Laurel Meadows Neighborhood Association” (“Association”). The Association has been created by filing Articles of Incorporation with the Montana Secretary of State on _______________. 3.2 Membership. Upon becoming an Owner of a Lot or Unit within the Property, each Owner shall automatically be a Member of the Association and shall remain a Member for the period of the Owner’s ownership of the Lot or Unit. Membership shall be appurtenant to and DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 10 may not be separated from ownership of a Lot or Unit. If more than one Lot or Unit is owned by an Owner, the Owner thereof shall have one membership for each separate Lot or Unit owned. For purposes of determining membership, a Person shall be deemed to be a Member upon the recording of the Plat creating the Lot or a deed to that Owner, or upon the recording of a Notice of Purchaser’s Interest or an Abstract of a Contract for Deed showing a contract purchase by the Owner. The legal title retained by the vendor selling under contract shall not qualify such vendor for membership. Foreclosure of a mortgage, trust indenture, or the termination or foreclosure of a contract for deed wherein title is vested in the mortgagee, beneficiary, or original seller on a contract, or repossession for any reason of a Lot or Unit sold under a contract shall terminate the vendee’s membership, whereupon all rights to such membership shall vest in the legal owner. 3.3 Compliance with Governing Documents. Each Member, whether it shall be so expressed in any deed or contract, is deemed to have agreed to strictly comply with the Governing Documents. 3.4 Member Contact Information. An Owner shall be responsible for providing a written instrument to the Secretary advising the Secretary of his/her/its acquisition of a Lot or Unit within the Property. Such written instrument shall also provide the name of the Person authorized to receive notices and to vote on all matters coming before the Association and of such Person’s mailing address, telephone number, and email address, and of any changes in ownership or contact information. 3.5 Joint Ownership. Multiple owners of a single Lot or Unit are jointly and severally obligated to perform the responsibilities of an Owner. However, multiple Owners shall have only one such membership or voting interest between them. If more than one Owner seeks to exercise the vote, the Association will count only the vote cast by the Person listed in the written instrument required by Section 3.4; and if no such written instrument has been provided, the voting privilege shall be suspended until the multiple interest owners provide a written instrument to the Secretary providing the name of the Person authorized to vote on behalf of the multiple owners. The Association shall not have any obligation to confirm, as among such multiple owners, which of the Persons has the right to exercise a vote. 3.6 Non-Natural Person Ownership. The membership rights of an Owner that is not a natural person may be exercised by any officer, director, partner, trustee, member, or manager, or by an individual designated in a written instrument to the Secretary describing and certifying the authority of such Person. If more than one Person described in this Section seeks to exercise the vote, the Association will count only the vote cast by the Person listed in the written instrument required by Section 3.4; and if no such written instrument has been provided, the voting privilege shall be suspended until a written instrument is provided to the Secretary providing the name of the Person authorized to vote on behalf of the non-natural Person Owner. The Association shall not have any obligation to confirm which of the Persons has the right to exercise a vote. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 11 3.7 Voting. On all matters to be decided by the Members of the Association, each Member whose Owner(s) are in Good Standing at the time the vote is taken shall be entitled to one vote for each Lot and Unit owned. The vote for such Lot or Unit shall be exercised by the Person designated pursuant to Section 3.4, and in no event shall more than one vote be cast with respect to any Lot or Unit. Except as otherwise required by the Declaration, the Bylaws, or Montana law, the Affirmative Vote of a Majority voting at a meeting or by written ballot (as described in more detail in the Bylaws), shall be sufficient to act on matters brought before the Association. Voting is further addressed in the Bylaws. 3.8 Suspension of Voting Rights. The voting rights of a Member may be suspended by the Board for any period of time that the Member is not in Good Standing. 3.9 Meetings of the Association. The Bylaws contain provisions regarding Association meetings, notice of meetings, Quorum, voting, actions taken without meetings, etc. 3.10 Board of Directors. The Bylaws contain provisions regarding the Board, including but not limited to appointment or election of directors, number, qualifications, term, resignation, removal, vacancies, officers, meetings, Quorum, voting, actions taken without meetings, indemnification, etc. 3.11 Rights and Powers of Association. The Association shall have and may exercise any power, right, or privilege given to it expressly by the Declaration and Bylaws or reasonably implied from or reasonably necessary to effectuate any such power, right, or privilege. Except where specifically reserved to the Members of the Association in the Declaration, Bylaws, or by Montana law, all powers, rights, and privileges of the Association may be exercised by the Board without a vote of the Members. The powers, rights, and privileges include without limitation: (a) To acquire (by gift, purchase, lease, trade, or any other method), own, regulate, operate, manage, maintain, repair, replace, improve, rent, sell, develop, encumber, dispose of, and otherwise deal in and with real and personal property of every kind and character, tangible and intangible; provided, however, the Association may not convey fee simple title of any real property owned by the Association without the Affirmative Vote of a SuperMajority. (b) To pay real estate taxes and assessments on property owned by the Association and all other taxes, duties, charges, fees and payments required to be made to any governmental or quasi-governmental entity which shall be imposed, assessed, or levied upon the Association. (c) To grant easements, leases, licenses, and concessions through or over real property owned by the Association, so long as the same do not unreasonably interfere with the use and enjoyment of an Owner’s Lot or Unit and the Common Areas. (d) To provide for the care, operation, management, maintenance, repair, replacement, and improvement of the Common Areas, including without limitation snow removal, control of noxious weeds, landscaping, irrigation, lighting, signage, etc. The Board may cause additional Improvements to be constructed or placed upon the real property owned by the Association or, with the consent of the City of Bozeman, the City Parks. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 12 (e) To enforce the Governing Documents in any manner permitted under the Declaration, Bylaws, or Montana law. (f) To adopt, amend, and enforce Rules and Regulations for the Property to: (i) prevent or reduce fire hazard; (ii) prevent disorder and disturbances of the peace; (iii) regulate pedestrian and vehicular traffic; (iv) regulate animals, home occupations, leases, the environment, and environmental practices; (v) regulate signs; (vi) regulate parking; (vii) regulate the use of all Common Areas to assure reasonable enjoyment of use by the Persons entitled to enjoy and use the same; (viii) promote the general health, safety, and welfare of persons within the Property; (ix) protect and preserve property and property rights; (x) to establish a process to hear grievances; (xi) to establish fines for violation of the Governing Documents; and (xii) for any other purpose permitted by the Declaration and Bylaws. Notwithstanding anything stated herein, the Board is not required to adopt a Rule and Regulation before imposing a fine for violation of the Governing Documents. (g) Subject to the Declarant’s rights before the Turnover Date to adopt and amend the Design Guidelines, to adopt, amend, and enforce Design Guidelines applicable within the Property to: (i) establish procedures to be followed by Owners in order to apply for and obtain approval for proposed Construction Activity, including without limitation the information and materials required to be provided and review fees and/or construction deposits to be paid; and (ii) establish the design standards to be followed in performing any Construction Activity in order to promote the stable value, character, and architectural design of the Property. (h) To maintain the records of the Association in accordance with applicable Montana law and the Bylaws. (i) To make expenditures, incur liabilities, enter into contracts and agreements, and provide services as are reasonable or necessary to affect the business of the Association or to effect any power, right, or privilege of the Association. (j) To obtain and pay for legal, accounting, and other professional and expert services as are reasonable or necessary to affect the business of the Association or to understand, assess, or effect any power, right, or privilege of the Association. (k) To enter into a Lot for: (i) emergency and safety reasons and to protect persons or property; (ii) to inspect for the purpose of ensuring compliance with the Governing Documents; and (iii) to remove and/or abate any violation of the Governing Documents, at the expense of the Owner. The right to enter may be exercised by any member of the Board or its officers, managers, contractors, or representatives, and all policemen, firemen, ambulance personnel, and similar emergency personnel in the performance of their duties. Except in an emergency situation, entry shall only be during reasonable hours and after notice to the Owner of the applicable Lot (or notice to the applicable Sub-Association if the Lot is governed by a Sub- Association). The rights set forth in this provision shall not obligate the Board or the Association to exercise any such rights or to undertake any of the actions set forth in this provision. (l) To prepare, adopt, and amend budgets for revenues, expenditures, and reserves and to levy and collect Assessments. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 13 (m) To pay the expenses of the Association, and to provide for the use and disposition of any insurance proceeds in the event of loss or damage. (n) To purchase insurance policies to: (i) protect the real and personal property of the Association against casualty or loss; (ii) to protect the Association, officers, directors, and Manager and DRP (when acting in their official capacity) from liability; and (iii) for any other purpose deemed advisable by the Board. (o) To provide for the indemnification of the Association’s officers, directors, Manager, DRP, and other agents of the Association as required or permitted in the Act. (p) To borrow funds to pay for any expenditure or outlay permitted by the Declaration; to execute all instruments evidencing such indebtedness as may be reasonable, necessary, or advisable; and to assign its right to future income, including without limitation the right to receive Assessments, as security for any borrowed funds. (q) To deal with agencies, officers, boards, commissions, departments, and other governmental bodies on a local, state, and federal basis to carry out the powers, rights, and privileges of the Association. (r) To institute, defend, intervene, or settle litigation, arbitration, mediation, or other legal or administrative proceeding on matters affecting the Property, the Governing Documents, or the Association, and to take such action it deems reasonable or necessary to enforce the Governing Documents. (s) To appoint a Manager to generally supervise and control the day-to-day business of the Association and to delegate certain powers, duties, and responsibilities to such Manager. (t) To exercise all other powers that may be exercised by a Montana nonprofit corporation under the Act or that are reasonable or necessary to protect the health, safety, and welfare of the Owners. Article 4 ASSESSMENTS 4.1 Personal Obligation for Assessments and Other Amounts. (a) Each Owner of a Lot or Unit, whether it shall be so expressed in any deed or contract, is deemed to have agreed to pay to the Association all Assessments levied on behalf of the Association. (b) No Owner of a Lot or Unit may exempt himself/herself/itself from liability for any Assessments or any other obligation under the Governing Documents by non-use of or abandonment of such Owner’s Lot or Unit, the Common Areas, the City Parks, or any other reason. The obligation to pay Assessments is a separate and independent covenant on the part of each Owner in relation to a Lot or Unit. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 14 (c) Notwithstanding anything stated in this Declaration to the contrary, the Declarant shall not be required to pay Assessments on any Lot or Unit it owns unless the residential dwelling on the Lot or the Unit, as applicable, is substantially completed and the residential dwelling or Unit, as applicable, is being occupied for its intended purpose. 4.2 Waiver of Homestead. By purchasing a Lot or Unit, each Owner agrees that any filed Homestead Exemption does NOT apply to any Assessments owed to the Association. 4.3 Types of Assessments. The Association may levy any and all of the following types of Assessments: (a) Common Assessments. “Common Assessments” include assessments to pay for (i) the Common Expenses of the Association; (ii) any other costs incurred by the Association; and (iii) an amount for reserves. The amount for reserves is determined after considering the amount being held in reserves; the number and nature of depreciable assets owned or partially or fully maintained by the Association, the expected life of each asset, and their expected maintenance, repair, and replacement costs; potential new Improvements; and budget shortfalls in prior years. Common Assessments shall be fixed by the Board and levied against each Lot and Unit obligated to pay Assessments. The Common Assessments shall be due thirty (30) days after notice of the Common Assessments is delivered. The Board may from time to time determine whether Common Assessments will be levied annually, semi-annually, quarterly, or monthly. (b) Special Assessments. “Special Assessments” may be levied from time to time to undertake a particular project or service that benefits some but not all of the Lots or Units, as determined by the Board. Except as otherwise specifically provided in this Declaration, any Special Assessment shall require the Affirmative Vote of a Majority of those benefitted Lots or Units. Special Assessments shall be payable in such manner and at such times as determined by the Board, but no less than thirty (30) days after notice of the Special Assessment is delivered to the Owners subject to the Special Assessment. (c) Default Assessments. “Default Assessments” mean (i) any fine imposed upon a Lot because of the Owner’s or the Owner’s Invitee’s violation of any provision of the Governing Documents; (ii) any cost or expense incurred by the Association as a result of an Owner’s or an Owner’s Invitee’s violation of any provision of the Governing Document, including without limitation reasonable attorney and paralegal fees, expert and professional fees, fees to determine the amount of fees, court costs, and all other expenses incurred by the Association; and (iii) any cost or expense incurred by the Association as a result of damage caused by the intentional or negligent act or omission of an Owner or the Owner’s Invitee. Default Assessments should be liberally construed. Default Assessments shall be payable in such manner and at such times as determined by the Board, but no less than thirty (30) days after notice of the Default Assessments is delivered to the Owner or successive Owner. (d) Community Transfer Assessments. Upon a Transfer, every Transferee shall pay to the Association a “Community Transfer Assessment” in an amount equal to $300.00 per Transfer. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 15 (1) Definitions. For the purposes of this Section, the following terms are defined as set forth below. (a) “Transfer.” “Transfer” means any conveyance, whether by operation of law or otherwise, of beneficial ownership of any Lot or Unit, including but not limited to conveyance of fee simple title to any Lot or Unit. “Transfer” shall not mean or include the transfers exempted under Section 4.3(d)(2) below. (b) “Transferee.” “Transferee” means and includes any Person to whom any interest in a Lot passes by a Transfer, and each Person included in the term “Transferee” shall have joint and several liability for all obligations of the Transferee under this Section. (2) Exemptions. (a) Notwithstanding anything stated herein to the contrary, if the Declarant or the Declarant’s Affiliates is the Transferee, they shall be exempt from having to pay a Community Transfer Assessment upon a Transfer of a Lot or Unit. (b) Notwithstanding anything stated herein to the contrary, if an Owner is transferring a Lot or Unit to an entity in which the Owner is the sole or majority owner or to a trust in which the Owner is the beneficiary, or vice-versa, they shall be exempt from having to pay a Community Transfer Assessment. (3) Payments and Reports. The Community Transfer Assessment shall be due and payable by the Transferee to the Association within ten (10) days after the Transfer giving rise to such Community Transfer Assessment. With such payment, the Transferee shall make a written report to the Board fully describing the Transfer, the names of the parties thereto, the name, address, and email address of the Person entitled to notice from the Association, and such other information as the Board may reasonably require. 4.4 Approving the Budget. So long as the Common Assessments do not increase by more than 15% over the amount of each such Common Assessments for the preceding year, the Board is not required to obtain Member approval to the adopt the budget. 4.5 Effect of Non-Payment of Assessments; Lien and Remedies of the Association. (a) Any Assessment not paid on or before the due date shall be delinquent. (b) In the event an Assessment becomes delinquent, the Association may take any or all of the following actions: (i) charge a fine equal to $100.00 or 10% of the delinquent Assessment, whichever is greater, which fine may be charged again on each DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 16 anniversary date of the due date if the delinquent Assessment has still not been paid in full; (ii) record a notice of lien in the Public Record setting forth the name of the Owner, a description of the Lot or Unit subject to the lien, and the Assessments owed to the Association; (iii) bring an action at law to collect all Assessments owed and/or foreclose the lien against the Lot or Unit subject to the lien; (iv) send the debt to collections; (v) apply any deposits held by the Association to the amount due; (vi) suspend the Owner’s voting privileges; and (vii) exercise any other remedy permitted under the Declaration or at law or equity. Each Assessment may be recovered by suit by the Association for a money judgment without foreclosing or waiving any lien securing the same, or may be recovered in any foreclosure, or both. The remedies expressed herein are cumulative and not exclusive, and the Association may take any action permitted under this Declaration or Montana law to collect the Assessments owed to the Association. (c) The recording of this Declaration constitutes record notice and perfection of a lien of the Association. No further recordation or filing of any claim of any lien is required. The Association may, in its discretion, record or file written notice of lien in the Public Record at the election of the Board. The priority of the lien of the Association shall be determined pursuant to Section 4.6 and shall not be dependent upon the recording or filing date of any notice of lien recorded or filed in the Public Record. The Board, acting on behalf of the Association, shall have the power to bid (which may be a bid on credit, up to and including the amount secured by the lien) for the Lot or Unit at a foreclosure sale, and to acquire and hold, lease, mortgage, and convey the same. During the period a Lot or Unit is owned by the Association following foreclosure, (i) no right to vote shall be exercised on behalf of the Lot or Unit, and (ii) no Assessment shall be assessed or levied on the Lot or Unit and each other Lot and Unit shall be charged, in addition to its usual Common Assessments, its equal pro rata share of the Common Assessments and Special Assessments that would have been charged to or payable by such Lot or Unit had it not been acquired by the Association; provided, however, if Owner or the Owner’s Invitee continue to possess the Lot or Unit, the Assessments shall be charged and paid for by the Owner during the time of such possession. (d) The sale or transfer of any Lot or Unit shall not affect the assessment lien or relieve such Lot or Unit from the lien for any subsequent Assessments. 4.6 Priority and Non-subordination of the Lien. The lien under this Article 4 shall be superior to all other liens, except for tax and assessment liens and a first mortgage or trust indenture of record recorded before the lien is recorded. 4.7 Liability of Members, Purchasers and Encumbrancers. The amount of any Assessment payable under this Article 4 shall be a joint and several obligation to the Association of such Owner and such Owner’s heirs, estates, devisees, personal representatives, successors, and assigns. Any Person acquiring fee simple title to a Lot or Unit shall be jointly and severally liable with the former owner of the Lot or Unit for all Assessments owed by the former owner at the time of the acquisition of the title or interest by such Person, without prejudice to such Person’s right to recover any such amounts paid from the former Owner. To be clear, a subsequent Owner of a Lot or Unit is jointly and severally liable for all Assessments and other amounts owed by the prior Owner at the time of the Transfer. Any Person acquiring a Lot or DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 17 Unit within the Property, regardless of how the Lot is to be acquired, has a duty to contact the Board or Manager to learn if there are any amounts owed to the Association by the Person transferring the Lot or Unit. 4.8 Verification of Assessments Due. Upon written request, the Association shall furnish to an Owner or such Owner’s title or mortgage company written verification of the amount of such Assessments owing and whether the Owner has paid such Assessments. Article 5 PROPERTY USE AND RESTRICTIONS 5.1 City Required Covenants. The covenants contained in Exhibit B are included as a condition of preliminary and final plat approval and are required by the City of Bozeman. They may not be amended or revoked without the approval of the governing body of the City of Bozeman. 5.2 Residential Use. Except as is reserved to the Declarant, the use of all Lots and Units shall be for residential purposes only; provided, however, a home occupation use is allowed so long as (i) the home occupation is incidental to the primary use as a residence, (ii) the home occupation is entirely inside the residential dwelling and not within any garage, Accessory Dwelling Unit, or Outbuilding, including any storage of materials; (iii) there are no non-resident employees working on the Lot or in the Unit; (iv) there is no more than one customer on the Lot or at the Unit at any one time, and no customers are permitted on weekends or nationally recognized holidays; (v) there is no excessive traffic, noise, or odors; (vi) no customers are permitted to purchase goods or products while visiting the Lot or Unit; and (vii) all Owners comply with Rules and Regulations adopted by the Board regarding home occupations. The Board may adopt additional Rules and Regulations regulating home occupations. 5.3 Leasing. An Owner may lease the Owner’s Lot or Unit as a long-term rental so long as: (i) all Owners comply with City of Bozeman codes and ordinances regarding leasing; (ii) all Owners shall comply with Rules and Regulations adopted by the Board regarding leasing; (iii) an Owner has a written lease with the Owner’s tenants that complies with Montana law and local ordinances; (iv) an Owner provides a copy of the Declaration to the tenant(s) before the beginning of the lease term; (iv) an Owner provides the Association with each tenant’s name, telephone number, and email address; and (v) an Owner shall continue to be responsible to the Association for the actions or omissions of their tenants and their Invitees, including without limitation any damage caused by tenants and their Invitees and any violation of the Governing Documents. A “long-term rental” means a rental for more than thirty (30) days. The Board may assess a fee to Owners of long-term rentals to offset additional costs incurred by the Association because of long-term rentals, such as administrative, maintenance, replacement, repair, enforcement, Manager, and insurance costs. “Short-term rentals” (i.e., rentals for thirty (30) days or less) are not permitted. ADUs may be rented separately from the primary residential dwelling, but only for long-term rentals. The Board may adopt additional Rules and Regulations regulating leasing. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 18 5.4 Peaceful Possession. The Lots and Units, City Parks, Common Areas, and Roads shall not be used for any purpose that unreasonably interferes with the peaceful possession and proper use of the Lots and Units, Common Areas, and Roads by other Owners. 5.5 Hazardous Materials. There shall be no storage of hazardous or dangerous materials, or of materials which will increase the rate of or cancel the insurance on the Property, within the Lots or Units, the City Parks, or the Common Areas. 5.6 Obstruction of Common Areas. There shall be no obstruction of the Common Areas or Roads, nor shall anything be altered, constructed in, or removed from the Common Areas or Roads, without the prior written consent of the Board. 5.7 Storage in Common Areas. There shall be no storage of items in the Common Areas or Roads without the prior written consent of the Board. Storage of items in the Common Areas is further subject to Rules and Regulations adopted by the Board. 5.8 Storage in Patios and Decks. There shall be no storage of items on patios or decks, except usual outdoor patio furniture and garden pots. No patios and decks shall be permitted to become unsightly. Storage of items in the patios and decks is further subject to Rules and Regulations adopted by the Board. 5.9 Storage in Yards. There shall be no storage of items in front yards or side yards facing a Road. This includes without limitation trampolines, play equipment, bikes, motorized equipment, furniture, etc. No yards shall be permitted to become unsightly. Storage of items in the yards is further subject to Rules and Regulations adopted by the Board. 5.10 Other Exterior Appearance. Except as otherwise provided in the Declaration or otherwise permitted pursuant to the Design Guidelines with approval of the DRP, Owners shall not cause or permit anything to be placed, hung, or displayed on the windows, or hung outside the windows, or placed outside of a Building or on the exterior of a Lot (such as signs, flags, solar arrays, air conditioning units, awnings, etc.), except as follows: (a) The Board may establish Rules and Regulation to permit satellite dishes, including the size and location of satellite dishes and other rules that may be required by the Over-the-Air Reception Devise (“OTARD”). Satellite dishes are not permitted in or on the Common Areas. No satellite dish may be installed until it is approved by the DRP. (b) Industry standard size “for sale,” “open house,” or “for rent” signs are permitted on a Lot or, if the Lot is subject to a Sub-Association, within a central kiosk or other common area designated by the Board for temporarily listing Units for sale, for open house, or for rent. All such signs shall be removed within fourteen (14) days after a Lot or Unit is sold or leased. If a sign is not timely removed, in addition to any other remedy available to the Association the Board or Manager may without further notice enter the exterior of a Lot or Unit and remove the sign and such entry shall not be deemed a trespass. Notwithstanding anything stated in this Section to the contrary, during the time the Property is being developed and the Lots or Units are being sold, the Declarant may erect signs to promote the development and sale of the Project, Lots, and Units. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 19 (c) No political signs are permitted except signs advocating the election, appointment, or defeat of a candidate for public office or the passage or defeat of a ballot issue; provided, however, the Board may establish Rules and Regulations imposing limits on the size of signs allowed to be displayed, the location of sign placement, and the time period during which signs may be displayed. Unless a longer time is required by federal or Montana statute, all political signs shall be removed within fourteen (14) days after an election. If a sign is not timely removed, in addition to any other remedy available to the Association the Board or Manager may without further notice enter the exterior of a Lot or Unit and remove the sign and such entry shall not be deemed a trespass. (d) The Declarant or Board may place a sign at the entrance(s) to the Project to identify the Project. If required by the City of Bozeman, any Project signs must have approval through the Bozeman Planning Department. Such signs shall be maintained by the Association. (e) The Declarant or Board may place directional and trail signs and any other signs permitted or required by the City of Bozeman. If required by the City of Bozeman, any signs permitted herein must have approval from the City of Bozeman. Such signs shall be maintained by the Association. 5.11 Bike Storage. All bikes shall be stored inside a Building. For single-family Lots, this could mean inside the dwelling, an attached garage, or an Outbuilding. For multi-family Lots, this could mean inside the Unit, in a garage, or in an interior space designated by the developer for bike storage. Notwithstanding anything stated herein, if there is no garage or Outbuilding on a Lot, the Board may, upon written request, permit one or more bikes to be stored in a carport (single-family Lot), in designated bike racks (multi-family Lot), or in another location approved by the Board in the Board’s sole and absolute discretion and subject to terms and conditions established by the Board. 5.12 No waste. No waste is permitted on the Property or on the exterior of any Lot or Unit. 5.13 No firearms or Fireworks. No firearms or fireworks of any kind shall be discharged in the City Parks, Common Areas, Roads, or on any Lot or Unit. 5.14 Noise. Sound systems, both interior and exterior, shall be used in a manner that minimizes sound, noise, and base reverberation to any adjacent Owners and to the neighborhood and shall not interfere with another’s peaceful possession of his or her Lot or Unit. 5.15 No Noxious or Offensive Activity. No noxious or offensive activity or odors shall take place in any Lot or Unit, the City Parks, or within the Common Areas or Roads, nor shall anything be done thereon which may, or may become, a nuisance or annoyance to the adjacent Owners or the neighborhood. As used herein, the term “noxious or offensive activity” shall not include any activities of Declarant or its respective contractors or subcontractors which are reasonably necessary to the development of and construction on the Property so long as such activities do not violate the Governing Documents or the statutes or ordinances any governmental or quasi-governmental entity having jurisdiction with respect thereto. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 20 5.16 Pets. In addition to the City Required Covenants regarding animal control, as set forth in Exhibit B, only domestic dogs, cats, or small in-house pets and birds (collectively “Permitted Household Pets”) are permitted on a Lot or Unit. No livestock, poultry, or other animals except Permitted Household Pets are permitted. Each Lot or Unit may have a maximum of two (2) Permitted Household Pets. Animals may not be kept, raised, or bred for any commercial purposes. Animals shall not be allowed to roam free within the Property and shall be restrained or leashed at all times when outside a Lot or Unit. If animals are kept outside, they may only be kept behind approved fences or runners; animals may not be tied or chained outside for extended periods of time. Owners and Owner’s Invitees shall immediately clean up after their animals on any part of the Property. Animals shall not be permitted to be a nuisance or annoyance to the adjacent Owners or the neighborhood, nor allowed to bark continuously or uncontrolled for extended period of times. Animals shall be strictly controlled by the Owners or Invitees to prevent any interference or harassment of birds or wildlife. Owners are responsible for injury or damage caused by the Owner’s or the Owner’s Invitees’ Permitted Household Pet or other animal. If any animals are caught or identified chasing or otherwise harassing birds, wildlife, or people, or have become a nuisance or annoyance to neighboring Owners, the Association or any Owner shall have the authority to have such animals(s) impounded in accordance with the City of Bozeman animal control regulations. The Board may adopt Rules and Regulations concerning Permitted Household Pets. Any Owner who causes any animal to be brought or kept on the Property shall indemnify and hold harmless the Association from any injury, loss, damage, or liability that the Association may sustain as the result of the presence of such animal on the Property. 5.17 Mailboxes. Individual mailboxes and newspaper tubes are not allowed. Community mailboxes and newspaper deliver areas will be clustered at strategic locations approved by the Postmaster to simplify mail and newspaper delivery. If community mailboxes are installed in locations for all Owners within the Property, the mailboxes shall be maintained by the Association; provided, however, if a community mailbox is installed on a multi-family Lot for the Units within that Lot, the Sub-Association for such Lot shall be responsible for maintaining such mailboxes. 5.18 Garbage. In addition to the City Required Covenants regarding refuse, as set forth in Exhibit B, all garbage, trash, and rubbish shall be regularly removed from the Lot and Unit, and shall not be allowed to accumulate on a Lot or Unit or on the decks, patios, or yards. Sub-Associations shall only place garbage dumpsters in a location approved by the DRP. If garbage dumpsters are located on a Lot, the Sub-Association for such Lot shall maintain the garbage dumpster and the surrounding area and ensure that garbage is regularly removed. No incinerator or other device for burning of garbage shall be installed or used. 5.19 Wildlife Habitat. It is recognized by Declarant, the Association, and the Owners that birds and wildlife live in or migrate through the Property during various times of the year. The following limitations on use and development are intended to protect, preserve and maintain DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 21 the existing bird and wildlife habitat in the Property and to minimize the adverse effects of development on the bird and wildlife habitat: (a) Hunting, capturing, trapping, or killing of birds or wildlife within the Property is prohibited. Skunks, gophers, and rodents may be trapped in the Common Areas by the Board or Manager or their designee, but poison may not be used. (b) No feeding or domestication of any birds or wildlife shall be permitted. No salt licks, bird feeders, or other foods shall be placed upon any Lot or Unit or in the Common Areas. Items such as bird feed, horse feed, grains, garbage and dog food shall be stored inside. (c) Owners and Owners’ Invitees should avoid areas of birds or wildlife concentration. Loud, offensive, or other behavior that harasses or frightens birds or wildlife is strictly prohibited. 5.20 Waterways and Wetlands. Owners and Owners’ Invitees shall conduct their use and activities in a manner that will preserve the integrity of waterways and wetlands, including the prevention of any degradation of water quality, any reduction or increase in the flow of said waterways or wetland areas, or any damage to the stream bed or banks of said waterways or wetland areas. Owners and Owners’ Invitees shall not: (i) discharge any liquid, solid, or gas into waterways or wetland areas; (ii) pollute the waterways or wetland areas; (iii) use fertilizers, herbicides, or poisons, other than those specifically approved by the board, that would runoff, drain, or discharge into waterways or wetland areas; (iv) cause any erosion to the waterways or wetland areas; or (v) divert any water or drainage from any waterway or wetland area. 5.21 Lights. . All exterior lighting shall be dark-sky compliant, free of glare, fully shielded, emit light downward, and comply with all other requirements of the Design Guidelines. 5.22 No Unsightliness. No unsightliness shall be permitted on any portion of the Property or the exterior of any Lot or Unit. Without limiting the generality of the foregoing: (a) No unsightly equipment, objects, or conditions shall be kept outside of a Lot or Unit. (b) Clothes, towels, bedding, and other similar items shall not be hung outside. 5.23 Parking. (a) Parking In General. Subject to other restrictions in this Section, parking is only permitted (i) within a Lot in an approved driveway, garage, pad, or Sub-Association parking area; (ii) in designated parking spaces along a Road. (b) Vehicles. The term “Vehicles” includes ordinary motorcycles, passenger cars, sports utility vehicles, and one ton or smaller pick-up trucks. The Board may adopt Rules and Regulations regarding the number of vehicles each Lot or Unit is permitted to park in designated spaces along the Roads. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 22 (c) Recreational Vehicles. No Person shall park, store, or maintain within a Lot or Unit or along the Roads any snowmobiles, boats, trailers, all-terrain recreational vehicles, motor homes, mobile homes, campers, recreational vehicles, commercial type trucks, or other similar vehicles or equipment (collectively, “Recreational Vehicles”), except in garages or approved Outbuildings. The temporary parking of Recreational Vehicles for periods of short duration, but not exceed four (4) hours within a forty-eight (48) hour period, as an incident to loading and unloading thereof, shall not be deemed a violation of this Section. (d) Inoperable or Junk Vehicles. No inoperable or junk vehicles may be parked or stored within a Lot or Unit or along the Roads, except in garages or approved Outbuildings, and no repairs to any Vehicle or inoperable or junk vehicle may be made on the Property except in the case of strict emergency. (e) In addition to any other remedy available, the Board shall have the right to cause any Vehicle, Recreational Vehicle, or inoperable or junk vehicle parked or stored in violation of this Section to be immediately removed from the Property, without notice and at the expense of the owner of such Vehicle, Recreational Vehicle, or inoperable or junk vehicle. The Association and the Board shall not be liable for any damages incurred by the Person because of the removal in compliance with this Section, or for any damage to the Vehicle, Recreational Vehicle, or inoperable or junk vehicle caused by the removal. (f) Parking within the Property is further subject to the adoption of Rules and Regulations by the Board. 5.24 Wood Burning Devices and Grills. No wood-burning devises in the exterior of any Lot. Grills, and smokers are only permitted on single-family Lots and in a common area on multi-family Lots (if permitted by the Sub-Association); provided, however, the Board may install and maintain a grill in the Common Areas, subject to Rules and Regulations promulgated by the Board. 5.25 Snow Removal. (a) In addition to the City Required Covenants regarding snow removal, as set forth in Exhibit B and Exhibit C, the Association shall be responsible for removing snow from the Roads (except Roads maintained by the City) and Common Area sidewalks, and may in the Board’s discretion remove snow from other Common Areas. (b) Owners shall be responsible for removing snow from driveways and from sidewalks within or adjacent to the Owner’s Lot. (c) Sub-Associations shall be responsible for removing snow from parking areas within the Lot containing the Sub-Association and from sidewalks within or adjacent to the Lot containing the Sub-Association. (d) In addition to any other remedy the Association may have, if an Owner or Sub-Association fails to timely remove snow from a sidewalk, the Board may cause the same to be removed and charge the costs of the same, plus twenty-five percent (25%), as a Default Assessment to the Owner of such Lot or the Owners within such Sub-Association. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 23 (e) Notwithstanding anything stated herein, the Association may authorize the Association to remove snow from Owner’s and Sub-Associations’ sidewalks (but not sidewalks within a Sub-Association Lot that are only for the use of Persons residing within such Lot), and charge the same as a Common Expense. 5.26 Installation, Repair, and Replacement of Sidewalks. (a) The Association shall be responsible for repairing and replacing Common Area sidewalks. (b) Owners shall be responsible for installing sidewalks within the Owner’s Lot on the earlier of the following: (i) before occupying any residential dwelling on the Lot; or (ii) within three (3) years from the date the Plat creating the Lot was recorded in the Public Record. (c) Owners shall be responsible for repairing sidewalks within or adjacent to the Owner’s Lot. (d) Sub-Associations shall be responsible for repairing sidewalks within or adjacent to the Lot containing the Sub-Association. (e) In addition to any other remedy the Association may have, if an Owner or Sub-Association fails to timely install or repair a sidewalk, the Board may cause the same to be installed or repaired and charge the costs of the same, plus twenty-five percent (25%), as a Default Assessment to the Owner of such Lot or the Owners within such Sub-Association. 5.27 Noxious Weeds. (a) The Association shall be responsible for controlling noxious weeds within the Open Spaces. (b) Owners shall be responsible for controlling noxious weeds within an Owner’s Lot. (c) Sub-Associations shall be responsible for controlling noxious weeks within the Lot containing the Sub-Association. (d) In addition to any other remedy the Association may have, if an Owner or Sub-Association fails to timely control the noxious weeds, the Board may cause the same to be controlled and charge the costs of the same, plus twenty-five percent (25%), as a Default Assessment to the Owner of such Lot or the Owners within such Sub-Association. 5.28 Other Declarations. A Lot or Lots containing multi-family residential dwelling(s) may be subject to additional declarations and/or Sub-Associations to administer and enforce the governing documents adopted for such Lot(s), including without limitation covenants, conditions, and restrictions specific to such Lot(s). The additional declarations do not, in any way, relieve the Owner from compliance with the Governing Documents. Additional DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 24 declarations may be more restrictive than this Declaration, but if there is a conflict between this Declaration and any additional declarations, this Declaration shall control. 5.29 Declarant’s Exemption. Notwithstanding any other provision of this Declaration, nothing contained in this Article 5 shall apply to the activities of Declarant. Article 6 EASEMENTS 6.1 Easements for Utilities. Each Lot and/or Unit may have its land or air space penetrated by electrical wires and lines, gas lines, water and waste pipes and water lines, and related equipment or facilities. There is hereby reserved to the Association a non-exclusive easement through, over, under, and across each Lot and/or Unit for ingress and egress to such pipes, lines, and equipment for inspection, installation, maintenance, repair, and replacement of such pipes, lines, and equipment. Such easement rights shall only be exercised by the Board or Manager and the designees of each upon reasonable notice and during reasonable hours, unless an emergency exists in which event any action may reasonably be taken which is justified under the circumstances to minimize damage which would otherwise occur as a consequence of such emergency. 6.2 Right of Access. There is hereby reserved to the Association a non-exclusive easement through, over, under, and across each Lot and/or Unit for access to each Lot and/or Unit for inspection, installation, maintenance, repair, and replacement of any Common Area therein or accessible therefrom, or for making emergency repairs therein necessary to prevent damage to the Common Areas. Such easement rights shall only be exercised by the Board or Manager and the designees of each upon reasonable notice and during reasonable hours, unless an emergency exists in which event any action may reasonably be taken which is justified under the circumstances to minimize damage which would otherwise occur as a consequence of such emergency. 6.3 Emergency Services Easements. There is hereby reserved to all police, sheriff, fire protection, ambulance, similar emergency agencies or persons, now or hereinafter serving the Property, a non-exclusive perpetual easement across and over any portion of the Property for ingress and egress and to enter any portion of the Property in the performance of their duties, subject, however, to limitations generally imposed by local, state, and federal law. 6.4 General Association Easements. There is hereby reserved unto the Association a non-exclusive, perpetual easement upon, across, above and under the Lots and/or Units for access, ingress, and egress in order to: (i) exercise any right held by the Association under this Declaration or any other Governing Document, (ii) inspect for compliance with the Declaration, and (iii) perform any obligation imposed upon the Association by this Declaration or any other Governing Document. Such easement rights shall only be exercised by the Board or Manager and the designees of each upon reasonable notice and during reasonable hours, unless an emergency exists in which event any action may reasonably be taken which is justified under the circumstances to minimize damage which would otherwise occur as a consequence of such emergency. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 25 Article 7 MAINTENANCE, REPAIR, AND REPLACEMENT 7.1 Maintenance of Lots and Improvements. Each Lot and Unit, and each Improvement on each Lot and Unit, shall be maintained, repaired, replaced, and kept in a safe, clean, and good condition, and with proper snow removal, sidewalk installation and repair, and noxious weed control, at the expense of the Owner(s) within such Lot or Unit; provided, however, if a Lot, Unit, or Improvement is not maintained, repaired, or replaced, or kept in a safe, clean, and good condition, and with proper snow removal, sidewalk installation and repair, and noxious weed control, then in addition to any other remedy the Association may have, the Board may cause the Lot, Unit, or Improvement to be maintained, repaired, replaced, and kept in a safe, clean, and good condition, and all such costs of the same , plus twenty-five percent (25%), shall be charged to the Owner of the Lot or Unit or the Owners within the Sub-Association as a Default Assessment. Not withstanding anything stated herein, the Association may immediately, and without notice, remove snow, and charge all such costs, plus twenty-five percent (25%), as a Default Assessment. 7.2 Maintenance of Common Areas. The Association shall maintain, repair, and replace the Common Areas; provided, however, if any maintenance, repair, or replacement must be performed because of the intentional or negligent acts or omissions of an Owner or an Owner’s Invitee or Sub-Association, then the Board shall charge all costs incurred by the Association, plus twenty-five percent (25%), to the Owner or the Owners within the Sub- Association as a Default Assessment. Exhibit C sets forth in more detail the Parks and Open Space Maintenance Plan; Exhibit D sets forth in more detail the Storm Water Management System Operation & Maintenance Manual; and the Laurel Meadows Wetland Mitigation Report. Article 8 DESIGN REVIEW 8.1 Members of the Design Review Panel. Before the Turnover Date, the Declarant may either appoint the Board as the DRP or appoint up to three (3) Persons to the DRP. After the Turnover Date, the Board may either act as the DRP or appoint up to three (3) Persons to the DRP. Members of the DRP are not required to be Owners. Persons on the DRP may be removed, with or without cause, by the Declarant if appointed by the Declarant or by the Board if appointed by the Board. 8.2 Approval to Perform Construction Activity. Except as otherwise stated in the Declaration, no Construction Activity may be commenced or maintained, and no Improvement shall be made, erected, or altered, except upon the prior written approval of the DRP. 8.3 General Review and Approval. Before performing any Construction Activity, Owners are responsible for contacting the Association to obtain a copy of the most updated Design Guidelines and Rules and Regulations regarding construction. Furthermore, Owners are responsible for obtaining approval for all Buildings, Improvements, and/or Construction Activities required to be approved under the Governing Documents. All Construction Activity shall be subject to and shall be in compliance with the Governing Documents and approved DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 26 plans. The Design Guidelines and/or Rules and Regulations set forth in more detail the purpose and powers of the DRP, the design review process, and the general architectural guidelines. 8.4 Fees and Deposits. The DRP, with the approval of the Board, shall have the authority to require reasonable fees to be paid with the filing of plans. The DRP, with the approval of the Board, shall also have the authority to require a deposit prior to commencing Construction Activities for the purpose of assuring that Construction Activities will be completed within the time specified and in compliance with the Governing Documents and approved plans. The Board or DRP shall not be required to release any deposits until it/they confirm that Construction Activity has been completed in accord with the Governing Documents and the approved plans. 8.5 Revocation or Suspension of Approvals. The Board and/or DRP shall have the authority to revoke or suspend DRP review and/or approval and/or order the suspension or cessation of any Construction Activity for violation(s) of the Governing Documents or for failure to construct the project in accordance with the approved plans. In addition, the Board shall have the authority, but not the obligation, to record a notice of such non-compliance in the Public Record. 8.6 Approval of Other Authorities Having Jurisdiction. In addition to receiving approval from the DRP, before construction commences the Owner shall also obtain approval from any other authority having jurisdiction over the Lot or Unit. 8.7 Time for Completion. (a) Construction shall commence within two (2) years after the approval or conditional approval is given. If construction has not commenced within two (2) years after approval or conditional approval, the approval shall expire and new plans must be submitted and a new written approval must be obtained. The determine of whether construction has commenced shall be made by the Board. (b) Once construction has commenced, construction must be completed within two (2) years unless the DRP grants an extension upon written request of the Owner, which extension shall be subject to such terms, conditions, and time limitations as in the discretion of the DRP are reasonable. The request for extension may be denied unless the Owner shows good cause for the extension. 8.8 Owner Acknowledgments. Each Owner is hereby advised and acknowledges that, in connection with any Construction Activity performed by or at the request of an Owner, such Owner must strictly comply with the applicable provisions of Governing Documents, which documents and provisions may include, among other things, the following: (i) procedures, fees, and deposits for making application to the Board for design review approval, including, without limitation, the documents and materials to be submitted and the process utilized to approve or disapprove any submission; (ii) time limitations to commence and complete construction; (iii) conditions to any consent or approval that that the DRP deem necessary or appropriate, including, without limitation, fines for failure to comply; (iv) the nature, kind, shape, height, color, materials and location of Improvements, parking, landscaping, open space, signage, DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 27 skylining, setbacks, utilities, storm water management, grading, erosion control, fencing, interaction with wildlife, fault and landslide areas, air contaminants, water quality, heat, lighting and glare, noise, vibration, electrical disturbances, fire and other hazards, permitted uses within specific areas, the scale of development, maximum floor area and other dimensional limitations, impervious surface, density, construction standards and any other matter regulated pursuant to the Governing Documents. 8.9 Adoption of Design Guidelines and Rules and Regulations. Before the Turnover Date, the Declarant has the power to adopt, interpret, and amend the Design Guidelines and to establish and amend Rules and Regulations regarding the procedure and fees for making application for design review approval; establishing design guidelines; establishing deposits that may be required prior to the commencement of any Construction Activity; and for any other purpose that will assist them in their review of applications to perform Construction Activities. After the Turnover Date, the Board may amend the Design Guidelines upon unanimous consent and the Board shall have the exclusive right to construe and interpret the pertinent provisions of any such Design Guidelines and/or Rules and Regulations. In the absence of any adjudication to the contrary by a court of competent jurisdiction, the Board’s construction or interpretation of the Design Guidelines and/or Rules and Regulations and the provisions of this Article shall be final, conclusive, and binding as to all Persons and property benefitted or bound by the provisions hereto. 8.10 Variances. The Declarant (before the Turnover Date) and the Board (after the Turnover Date), may, in their sole and absolute discretion, grant variances from the Design Guidelines or Rules and Regulations if (i) there is a valid justification, (ii) the variance does not have a negative impact on the Owners or the Property as a whole, (iii) design merit, and (iv) the variance is reasonable in relation to the overall character and nature of the area. The Owner shall apply in writing to the DRP for a variance addressing the above criteria and all variance Rules or Regulations adopted by the Board, and the DRP may make a recommendation to the Board as to whether to approve, approve with conditions, or deny the requested variance, but the Board is not bound to the DRP’s recommendation. The decision to approve a variance shall not be deemed a waiver of any provision of the Declaration and the Board and DRP shall not be deemed required to approve a similar variance under other similar circumstances. 8.11 Conflict of Interest. If a director or member of the DRP submits a project to the DRP for review, that director shall recuse himself from the meeting as a voting member of the DRP or Board and not participate in the review and discussion of the submitted Construction Activity. 8.12 Approvals and Consents. DRP decisions shall be conclusive and binding on all interested parties, subject only to the right of appeal detailed below. Any approval or disapproval by the DRP shall be in writing and in the case of a denial shall state the reasons for such denial. Decisions of the DRP are final; however, an Owner can appeal to the Board in writing to reconsider the DRP’s decision. An appeal must be made in writing within (10) business days of the decision and be delivered by certified mail or email to the Association’s mailing address. The request will be considered by the Board. The Board will in writing affirm, modify, or reverse the decision. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 28 8.13 Liability of Declarant, Association, Board, and DRP. The standards and procedures established by this Article are intended to enhance the overall aesthetics of the Property. None of the Declarant, the Association, the Board, or the DRP, nor any of their respective officers, directors, employees or agents, shall be responsible or liable for ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring compliance with building codes and other governmental or quasi-governmental entity requirements, nor for ensuring the appropriateness of soils, drainage, and general site and geotechnical work. No such approval shall be interpreted to mean that the construction, alteration, installation or other work covered thereby (i) complies with laws, rules, regulations, ordinances or other requirements of any governmental or quasi-governmental authority, or any applicable covenants, conditions or resolutions, (ii) is free from defects, errors or omissions, or (iii) is structurally sound. None of the Declarant, the Association, the Board, or the DRP, nor any member or officer of any of the foregoing, shall be held liable for any injury, damages, or loss arising out of the manner or quality of approved or disapproved Construction Activity. 8.14 Remedies. If an Owner fails to strictly comply with the provisions of this Article 8, the Design Guidelines, and the approved plans, then in addition to any other remedy the Association may have, the Board may, in its discretion and at its option, take any or all of the following actions: (i) completion of the exterior of the Improvement in accord with the Design Guidelines and approved plans; (ii) screening or covering the Improvement; (iii) removing the non-complying or incomplete Improvement; (iv) retaining any or all of the deposit charged by the DRP; (v) levying a per diem, weekly, or monthly fine in an amount determined by the Board until the construction is in compliance and completed; (vi) charging the costs incurred to enforce the Governing Documents as a Default Assessment; (vii) filing and foreclosing a lien against the Lot and/or Unit for the amounts owed to the Association until all amounts owed are fully paid; (viii) filing a legal action to compel compliance with the Governing Documents (by injunction or otherwise) and for damages; and (ix) exercising any other remedy permitted under the Declaration or at law or equity. 8.15 Liability of Members, Purchasers and Encumbrancers. A successive Owner shall be a jointly and severally obligated to the Association for any violation of Article 8, the Design Guidelines, and the approved plans, regardless of whether the violation is discovered before or after the successive Owner takes ownership, and for any Default Assessments which have or may accrue as a result of such violations, without prejudice to such Person’s right to recover any such amounts paid from the former Owner. To be clear, a subsequent Owner of a Lot or Unit is jointly and severally responsible for ensuring each Lot and/or Unit is in compliance with Article 8, the Design Guidelines, and the approved plans, and for any Default Assessments arising as a result of such non-compliance. 8.16 Letter of Compliance. Upon written request to the DRP and for a reasonable fee (if requested), the DRP will inspect the Lot and/or Unit and provide a written letter confirming whether the Construction Activity or Improvement was constructed in compliance with the approved plans. Even if a letter of compliance is issued, the Owner and successive Owner shall still be responsible for any Construction Activity or Improvement that was not submitted with the plans and for any subsequent Construction Activity or Improvement (whether it be a modification or alteration to the approved plans or a new Construction Activity or Improvement). DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 29 8.17 Notwithstanding anything stated in this Article, before the Turnover Date the Declarant and the Declarant’s Affiliates shall not be subject to the Design Guidelines or Rules and Regulations regarding construction. Article 9 ENFORCEMENT AND REMEDIES 9.1 Strict Compliance. Each Lot, Unit, Sub-Association, Owner, and the Owner’s Invitees shall strictly comply with all provisions of the Governing Documents. 9.2 Authority to Enforce. The Governing Documents may be enforced by the Declarant, the Association (by and through the Board), a Sub-Association, or any Owner. 9.3 Remedies for Non-Compliance. In addition to any other remedies of the Association set forth in the Governing Documents or permitted under Montana law, the failure to comply with any of the provisions of the Governing Documents shall be grounds for the imposition of fines, an action to recover damages or for injunctive relief or both, the filing of liens and actions to foreclose the liens, suspension of Membership rights and privileges (including without limitation the right to vote and the right to use the Common Areas), and imposition of Default Assessments. 9.4 Remedies Cumulative. Each remedy provided to the Association under Montana law or the Governing Documents is cumulative and not exclusive. 9.5 Written Notice of Non-Compliance. Except as otherwise stated in the Declaration for non-payment of Assessments, removal of signs, removal of Vehicles, Recreational Vehicles, and inoperable or junk vehicles, or removal of snow, before a fine, action, or suspension of Membership Rights, the Board shall provide the Sub-Association or Owner with at least ten (10) days written notice of the alleged violation. The Owner may respond in writing within such ten (10) days as to why a violation has not occurred. If a response is not timely provided, a violation will be deemed to have occurred. If a response is timely provided, the Board will consider the written response and will notify the Sub-Association or Owner in writing as to the Board’s decision. 9.6 Discretion. The Association, through the Board, shall have the right but not the obligation to enforce any provisions of any of the Governing Documents. The Board may establish policies as to when a violation will be enforced. The Board may also a make a reasonable business decision in each case as to whether or not the Governing Documents will be enforced. Such a decision shall not be deemed a waiver of the right of the Board to enforce such provision at a later time or under other circumstances, nor shall it preclude the Board from enforcing any other covenant, restriction or rule, nor shall it preclude any Owner from taking action at law or in equity to enforce the Governing Documents. 9.7 Attorney’s Fees. The Association shall be entitled to reimbursement for all of its costs, including without limitation all court costs, expenses, charges, and reasonable attorney’s fees (including fees to determine fees and fees on appeal) incurred to enforce the Governing Documents against a Sub-Association or Owner, regardless of whether a legal proceeding is initiated. If a legal proceeding is initiated arising out of the interpretation or enforcement of the DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 30 Governing Documents, the substantially prevailing party in such lawsuit shall be entitled to reimbursement for all court costs, expenses, charges, and reasonable attorney’s fees (including fees to determine fees and fees on appeal)incurred by the substantially prevailing party. 9.8 Delegation. The Board may delegate any of its rights or obligations with respect to enforcement as set forth above to its appointed agent, including but not limited to the DRP; except that any decision to pursue or not pursue any legal proceeding may not be delegated and shall be determined by the Board. Article 10 INSURANCE 10.1 Association Insurance. The Board shall purchase and maintain such insurance and in such amounts as the Board deems reasonable, necessary, and appropriate. 10.2 Premiums. Premiums for insurance policies purchased by the Association shall be paid by the Association as a Common Expense; provided, however, the amount of any increase in the premium occasioned by the use, misuse, occupancy, or abandonment of a Lot or Unit may be assessed as a Default Assessment to the Owner of the Lot or Unit. Article 11 DECLARANT’S SPECIAL RIGHTS 11.1 Declarant’s Special Right to Develop Property. (a) Laurel Meadows Subdivision is being developed in phases. Until the Turnover Date, Declarant reserves the right in its sole discretion to develop the Property in any manner permitted by State laws and the ordinances and codes of the City of Bozeman, which may include the creation and development of additional Lots, Units, City Parks, Common Areas, Roads, utility improvements, easements, and restrictions; and adding additional uses. (b) The Declarant has the right and authority to develop the Property in any manner permitted by State laws and the ordinances and codes of the City of Bozeman and has no obligation to complete such development within a particular time. No consent of the Association, Board, Sub-Association, or any Owner or other party shall be necessary to affect the Declarant’s development. (c) The Association, Sub-Associations, Owners, lien holders, mortgage holders, and others acquiring any interest in a Lot or Unit herein consent to the Declarant developing the Property in any manner permitted by State laws and the ordinances and codes of the City of Bozeman and at any time, and their consent is implied to such development by their acceptance or acquisition of any interest or lien in any portion of the Property, and the Declarant is appointed the agent and attorney-in-fact for each Sub-Association, Owner, lien holder, and mortgage holder to execute and record such plats, amendments, additional declarations, easements, and other documents as may be reasonable or necessary to further develop the Property. Upon the execution and recording or any such documents, the Sub-Associations, Owners, lien holders and mortgage holders shall be bound and subject to the terms, provision, and conditions and consequences of such documents. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 31 (d) TO THE FULLEST EXTENT PERMITTED UNDER MONTANA LAW, EACH OWNER WAIVES THE RIGHT TO PROTEST, CHALLENGE, OR OTHERWISE OBJECT TO CHANGES MADE OR PROPOSED BY THE DECLARANT IN THE DEVELOPMENT OF THE PROPERTY OR IN THE USES, DENSITY, BUILDING RESTRICTIONS, OR USE RESTRICTIONS APPLICABLE TO THE PROPERTY. 11.2 Annexation. 11.2.1 Until the Turnover Date, the Declarant has the right but not the obligation to annex additional real property into the Property (“Annexed Property”) from time to time. Unless and until the Annexed Property is annexed into the Property pursuant to this Section, such Annexed Property is not deemed to be a part of the Property and is not subject to the Governing Documents. If real property is annexed into the Property pursuant to this Section, such Annexed Property shall be subject to the Governing Documents as of the time the amendment or supplement annexing the Annexed Property is recorded in the Public Record. The manner of annexing additional real property shall be accomplished by filing in the Public Record an amendment or supplement for each such annexation containing the following: (a) An amended Exhibit A providing the amended legal description for the Property. (b) Amendments to any of the Exhibits that may be required by the City of Bozeman in order to obtain preliminary or final plat approval. (c) Such other amendments and exhibits as the Declarant deems necessary or desirable to incorporate the Annexed Property into the Property and the Laurel Meadows Subdivision. 11.2.2 The Declarant shall have the irrevocable right before the Turnover Date to execute, file, and record any amendment or supplement permitted under this Section, and such other documents reasonable or necessary to accomplish such annexation. The Association, Sub- Associations, Owners, lien holders, mortgagees, and others acquiring any interest in a Lot or Unit herein consent to the Declarant amending or supplementing the Declaration (and Bylaws, if required), and their consent is implied to such amendments or supplements by their acceptance or acquisition of any interest or lien in a Lot or Unit; and if the signature of any Owner or any Person having an interest in a Lot or Unit is required by any governmental agency, Declarant is appointed the Owner’s and Person’s agent to execute and record such amendments or supplements. 11.2.3 Upon the execution and recording or any such amendment or supplement, such Annexed Property shall thereafter be deemed part of the Property and the Sub-Association, Owners, lien holders, mortgagees, and others acquiring any interest in a Lot or Unit therein shall be bound and subject to all provisions of the Governing Documents. 11.2.4 The amendment or supplement shall be effective at the time it is recorded in the Public Record. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 32 11.3 Declarant’s Water Rights. Any water rights arising from or related to the Property are expressly reserved to the Declarant and shall not be conveyed with the transfer of title to any Lot or Unit, regardless of whether it is so stated in a deed for any Lot or Unit. Declarant reserves the right to convey all or any of such water rights to the City of Bozeman and/or the Association. 11.4 Declarant’s Easements. (a) Until the Turnover Date, Declarant hereby reserves, for the benefit of itself and its agents, representatives, contractors, and subcontractors, a non-exclusive easement through, over, over, under, and across, the Property and within any easement shown on the Plat, as may be reasonable or necessary to (i) discharge Declarant’s obligations under this Declaration; and (ii) exercise any of the Declarant’s Special Rights. (b) Declarant hereby reserves, for the benefit of itself and its Affiliates agents, representatives, contractors, and subcontractors, a non-exclusive easement through, over, under, and across the Common Areas and any easements shown on the Plat for ingress and egress to the Common Areas and any easements shown on the Plat for the purpose of inspecting, installing, maintaining, repairing, replacing, relocating, tapping into, tying into, extending, enlarging, and using hot and cold water lines, waste water lines, electrical lines, gas lines, internet lines, cable television systems, master television antenna systems, Roads, Trails, ponds, wetlands, drainage systems, and any other utilities, to further develop the Property. (c) Until the Turnover Date, Declarant hereby reserves for itself and its successors and assigns the right to establish easements within the Property consistent with developing the Laurel Meadows Subdivision. 11.5 Declarant’s Other Special Rights. Notwithstanding any other provision expressly or impliedly to the contrary in the Declaration or Bylaws, the Declarant hereby reserves the following rights: (a) Until a residential dwelling on Lot is substantially completed and is being occupied for its intended purpose, the Declarant shall not be required to pay any Assessments for a Lot or Unit. (b) Until the Turnover Date, the right to change the name of the Association; (c) Until the Turnover Date, the right to merge and consolidate the Association with another property owners association. (d) Until the Turnover Date, the right to make amendments to the Declaration which the Declarant believes are reasonable or necessary to the development of the Property, and to record such amendments in the Public Record. (e) Until the Turnover Date, the right to adopt and make amendments to the Bylaws for the Association. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 33 (f) Until the Turnover Date, the right to appoint the Board of Directors and the DRP. (g) Until the Turnover Date, the right to adopt and amend the Design Guidelines and to not be subject to the Design Guidelines. (h) Until the Turnover Date, the right to exercise any development right, including, without limitation, the right to develop the Property in any manner permitted by State laws and the codes and ordinances of the City of Bozeman; the right to change the uses for Lots not yet developed; the right to subdivide or combine Lots; the right to create additional Common Areas and City Parks; the right to annex additional property; and the right to construct any Improvements on the Property. (i) Until the Turnover Date, the right to construct and maintain sales offices, trailers, booths, Improvements, or other structures used for sales or promotional purposes, management offices, and models on the Property, and the right to construct and maintain signs advertising the Property, Lots, and the Units contained therein. The number, size, and location of any such sales structures and signage, management offices, or models or the relocation thereof shall be determined by Declarant. (j) Until the Turnover Date, the right to maintain construction equipment on the Property that is necessary for the development of the Property. (k) Any other right set forth within the Declaration and/or the Bylaws as reserved to the Declarant. 11.6 Transfers of Declarant’s Special Rights. (a) The Declarant’s Special Rights may be transferred or assigned by the Declarant in whole or in part. Any such transfer or assignment shall only be effective if it is in a written instrument signed by Declarant and recorded in the Public Record. (b) Upon transfer or assignment of the Declarant’s Special Rights, the liability of an assignee is as follows: (i) an assignor is not relieved of any obligation or liability arising before the transfer; (ii) an assignor has no liability for any act or omission or any breach of a contractual or warranty obligation arising from and after the date of such transfer. (c) Upon transfer or assignment of the Declarant’s Special Rights, the liability of an assignee is as follows: an assignee of the Declarant’s Special Rights is subject to all obligations and liabilities imposed on the Declarant by this Declaration. 11.7 Rights of Declarant after the Turnover Date. After the Turnover Date, Declarant shall still have the following rights and duties: (i) if still an Owner, Declarant will continue to have all of the rights and duties given to Members under the Governing Documents; and (ii) any right or duty of the Declarant that has not been expressly limited as existing only before the Turnover Date. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 34 11.8 Amendments to Article 11. The provisions of Article 11 are irrevocable and are deemed to be covenants running with the land for the benefit of the Declarant. No provision included in Article 11 shall be amended except by an amendment signed and notarized by the Declarant. Article 12 AMENDMENT 12.1 Amendment. Within the Declaration, “amend” or “amendment” broadly means the right to amend, supplement, restate, modify, change, add to, or delete provisions of the Declaration. (a) By Declarant. In addition to the Declarant’s rights to amend the Declaration pursuant to other provisions of the Declaration, before the Turnover Date the Declarant may unilaterally amend this Declaration for any other purpose. (b) By Members. Except as otherwise stated in the Declaration, before the Turnover Date the Members may amend the Declaration by: (i) obtaining the written consent of the Declarant; and (ii) obtaining an Affirmative Vote of a SuperMajority. Except as otherwise stated in the Declaration, after the Turnover Date the Members may amend the Declaration by obtaining an Affirmative Vote of a SuperMajority. (c) Recording of Amendment. Any amendment made by the Declarant or Association becomes effective when it is recorded in the Public Record. (d) Restrictions on Amendment. No amendment may remove, revoke, or modify any right or privilege of the Declarant, or increase Declarant’s obligations, unless the amendment is signed and notarized by the Declarant. In addition, the covenants contained in Exhibit C and any other covenant required by the City of Bozeman as condition of plat approval may not be amended without the approval of the governing body of the City of Bozeman. Article 13 Interpretation 13.1 Effect of Provisions of Declaration. Each provision of this Declaration, and any agreement, promise, covenant and undertaking to comply with each provision of this Declaration, and any necessary exception or reservation or grant of title, estate, right or interest to effectuate all easements, grants, and conveyances herein and all other provisions of this Declaration, shall be deemed incorporated in each deed or other instrument by which any right, title, or interest in any real property within the Property is granted, devised, or conveyed, whether or not set forth or referred to in such deed or other instrument. 13.2 Interpretation of the Declaration. The Association, by and through its Board, shall have the exclusive right to construe and interpret the provisions of the Governing Documents. In the absence of any adjudication to the contrary by a court of competent jurisdiction, the Board’s construction or interpretation of the provisions of the Governing DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 35 Documents shall be final, conclusive and binding as to all Persons and property benefitted or bound by the covenants and the provisions hereof. 13.3 Conflicts Hierarchy. In the event that there is any conflict or inconsistency between nay mandatory provision of Montana law, this Declaration, the Articles, the Bylaws, the Rules and Regulations, and the Design Guidelines, the conflict or inconsistency shall be resolved in the following order: Montana law (mandatory provision only), this Declaration, the Articles, the Bylaws, the Design Guidelines, the Rules and Regulations, and Montana law (non-mandatory provisions). If a conflict or inconsistency exists between a Governing Document and any subsequent amendment of such Governing Document, the most recent amendment shall control. Article 14 MISCELLANEOUS 14.1 Limited Liability. None of Declarant, the Association, the Board, the DRP, or any member, agent, or employee of any of the same shall be liable to any party for any action or for any failure to act with respect to any matter related to the Governing Documents if the action taken or failure to act was in good faith and without malice. Such parties shall additionally be entitled to indemnification by the Association to the extent required under applicable law or any Governing Document. 14.2 Successors and Assigns. Except as otherwise provided herein, this Declaration shall inure to the benefit of Declarant, the Association, and each Owner and shall be binding upon Declarant, the Association, each Sub-Association, each Owner and their respective heirs, devisees, personal representatives, successors and assigns. 14.3 Severability. A determination of invalidity of any one or more of the provisions or conditions hereof, or any portion thereof, by judgment, order or decree of a court shall not affect in any manner the other provisions or portions of provisions hereof which shall remain in full force and effect. 14.4 Captions. The captions and headings in this Declaration are for convenience only and shall not be considered in construing any provisions of this Declaration. 14.5 Gender. The use of the masculine gender in this Declaration shall be deemed to include the feminine and neuter genders and the use of the singular shall be deemed to include the plural, and vice versa, whenever the context so requires. 14.6 No Waiver. Failure to enforce any provisions of the Governing Documents shall not operate as a waiver of any such provision or of any other provision of the Governing Documents. The Association expressly reserves the right to enforce, against each and every Sub- Association and Owner, each provision of the Governing Documents. 14.7 Service of Process. The name and address of the person to receive service of process for the Association shall be the person named in the most recent annual report on file with the Montana Secretary of State. DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 36 14.8 Warranties. The Declarant expressly makes no warranties or representations concerning the Property, the Lots, the Units, the Governing Documents, the Articles, the Bylaws, or deeds of conveyance except as specifically set forth therein. 14.9 Notice. Any written notice required or permitted to be given under the Governing Documents shall be deemed given and delivered as follows: (i) if by personal delivery, on the date it is delivered; (ii) if by mail, three (3) days after being deposited in the U.S. Mail; or (iii) if by email, twenty-four (24) hours after it is emailed unless the email is returned as undeliverable. The mailing address of the Association shall be the address set forth in the most recent annual report filed with the Montana Secretary of State. The mailing address of the Owner shall be the address provided pursuant to Section 3.4 or the address set forth in the on-line Gallatin County, Montana, tax records. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] DECLARATION OF PROTECTIVECOVENANTS, CONDITIONS AND RESTRICTIONS FOR LAUREL MEADOWS SUBDIVISION PAGE 37 IN WITNESS WHEREOF, the Declarant has executed this Declaration of Protective Covenants, Conditions and Restrictions for Laurel Meadows Neighborhood Condominiums on this _____ day of ____________, 20____. DECLARANT: 8FC LLC, a Montana Limited Liability Company By: ____________________________ Authorized Member STATE OF MONTANA ) :ss COUNTY OF Gallatin ) This instrument was acknowledged before me on ___________________, by ________________, as Authorized Member of 8FC LLC, a Montana Limited Liability Company. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. Notary Public