Relevant

6. GENERAL RESTRICTIONS APPLICABLE TO ALL PARCELS

6.1 Use Restrictions: All Parcels shall be used for residential and recreational purposes only, provided, however, livestock, horses, poultry and domestic animals may be kept pursuant to the provisions in Sections 6.12 & 6.13. Notwithstanding anything contained in this Paragraph this restriction shall not prohibit home offices in a residential property where business is conducted through telephone, computer, or other electronic means and where the business is not apparent from the exterior of the residence; does not create noise or congestion from traffic or parking; and preserves the residential nature of the Property. All uses shall be in compliance with Yavapai. .County zoning regulations and permitted uses, in addition to the provisions stated herein. .

6.2                      Structures: Not more than one (1) single family detached residential structure and one (1) guest house, along with customary outbuildings such as, a garage, bam, stable, tack-room, horse facilities and equipment room shall be permitted on each Parcel. Under no circumstances shall any Parcel contain more than two (2) living quarters consisting of the primary residence and guest quarters. Guest quarters are defined as a separate guest house OR living quarters contained within a barn. Construction of a guest house, barn, or other structures or improvements (other than temporary horse shelters permitted under paragraphs 6.4 and 6.13) may not begin until construction of the primary residence has begun or has been completed. No structure shall exceed two (2) stories or thirty feet (30') in height unless written approval has been given by the Architectural Review Committee including but not limited to barns and windmills. All structures must be constructed from new material or its equivalent with the finished exteriors being of natural colors, in harmony with each other, and in harmony with the natural surroundings. Structures may be subject to Yavapai County codes, regulations, building permits, and Flood Control District requirements (if applicable), the compliance of which shall be the Owner's responsibility. No grading, excavation or leveling of a Parcel or construction, installation or erection of a structure, including residence, guest house, bam, garage, tack-room, horse fencing, equipment room or other structure, (including substantial alterations of existing structures) shall commence until the following have been submitted to and approved by the Architectural Review Committee; plot plan, floor plan, front, back and side elevations, samples of all siding and roofing materials and the colors to be used. No reflective roofing shall be allowed. Corrals and pens shall be built and maintained in an attractive and workmanlike mannerand maintained in such sanitary manner so as not to be considered a nuisance. Construction of all structures (other than residences) shall be completed within six (6) months from commencement. Residences and guest houses shall be completed in accordance with the restrictions stated in paragraph 6.3 below.

6.3 Primary Residences and Guest Houses: Construction of a primary residence and guest house or barn with living quarters shall be newly and permanently constructed for year-round living and must meet Yavapai County's minimum standards for single-family dwelling construction. Plans shall be subject to approval, in writing, by the Committee prior to the commencement of construction. No mobile, modular, manufactured or pre-constructed home may be moved onto the Property. All residences shall be constructed on-site and shall be of

conventional construction. No structure, including but not limited to dwellings, shall exceed two (2) stories in height. Primary residences shall contain a minimum of 1,800 square feet of living area, exclusive of garage, carport, open porches, and patios. Two (2) story primary residences shall contain a minimum of 1,200 square feet on the first level with a minimum of 600 square feet on the second level. The square footage for guest houses shall be in accordance with current Yavapai County zoning regulations. The exterior of alf primary residences and guest houses shall consist of a minimum of fifty percent (50%) wood, stone and/or glass and shall be of natural colors and in harmony with each other and their natural surroundings. No dwelling or other improvement shall be occupied until fully completed as approved by the Committee. Construction of any residence shall be completed within one (1) year of commencement.

6.4 . Temporary Structures: Motor homes, travel trailers -and-recreational vehicles may not ­

be parked or used on a Parcel for more than seven (7) accumulative days per month. Temporary shelters used for the keeping of horses (as defined in paragraph 6.13) shall not be used for more than seven (7) days per month unless the Committee has received, reviewed and approved both the barn design and the temporary shelters design, in which case the shelters may be used for up to six (6) months while the bam is being constructed in accordance with the provisions in paragraph 6.2. All such structures (other than temporary horse shelters) must be fully self­-contained. No temporary structure may be used as a residence or guest house. These provisions must be strictly adhered to.

6.5       Location of Structures: All structures are to be erected or placed no closer to Parcel

boundary lines than 100 feet unless approved, in writing, by Developer or the Committee. Fences are not considered "structures" The set-back lines and all other restrictions contained herein are in addition to zoning and other land use regulations established by governmental authorities and the more restrictive shall apply.

6.6 Utility Lines: (with the exception of pre-existing utility lines on lot #29) All utility lines running to any residence, outbuilding, machinery, pump, etc., must be placed underground beginning at the point where it enters the Parcel UNLESS prior written approval is received from the Developer or the Committee to allow lines to be constructed above ground due to topographic or surface constraints.

6.7       Storage, Parking and Repairs: No campers, camping trailers, boats, boat trailers, travel trailers, motor homes, recreational vehicles, or any other sporting or camping equipment or unlicensed or unregistered vehicle may be stored on any Parcel unless stored in a garage or outbuilding that has been approved by the Committee. No repairs, rebuilding or maintenance

work shall be performed on any of the above or any other piece of equipment within 100 feet of the Parcel boundary lines, nor adjacent to roadways and every effort shall be made to perform such work in an outbuilding or within a screened area.

6.8       Antennas and Generators: The placement location of antennas, satellite dishes and

power generators must have approval from the Committee prior to installation and must not be installed in such a way as to disturb the owners of adjacent Parcels. If there is a dispute over the placement, the Committee shall have the final decision on what affect the placement has on adjacent Parcel owners. Turbine wind generators are prohibited.

6.9 Off-Road Vehicles: All vehicles, engines, or motors must be operated with a muffler and/or spark arrestor. Off-road vehicles such as motorbikes, motorcycles, ATV's, snow mobiles or other motorized vehicles may be operated on owner's individual Parcel, however motor-cross tracks, racing areas, competitive off-road racing or any structured motor-cross activities are strictly prohibited. Any off-road vehicles operated on roadways must be operated in a safe manner and in such a way so as not to create a hazard or a nuisance or endanger livestock.

6.10 Water and Individual Sewage Systems: Each Parcel Owner may drill one (1) domestic, well per Parcel owned, at Owner's cost, and withdraw groundwater for noncommercial purposes so long as the well pump does not exceed a capacity of fifteen (15) gallons per minute (with the exception of the pre-existing pumps on the pre-existing pumps on Lot #29). "Domestic water use, as defined herein, may include the following; outdoor watering for landscape vegetation, a garden, a pasture, livestock and other allowed animals, crops, alfalfa (so long as not for commercial purposes), a pond, and the irrigation of not more than ten percent (10%) of the Parcel (by Owner's well), PROVIDING HOWEVER, no more than six (6) acre feet per calendar year is used from each permitted well. If the Parcel is subdivided, under the provisions of this Declaration, each Parcel may have its own well, subject to the conditions mentioned previously. Any domestic well must be installed in compliance with the laws, rules, and regulations of the Arizona Department of Water Resources and any other applicable federal, state or local regulatory agency or authority. If requested by the Board or Developer, Owner will provide reasonable evidence of the well pump's capacity and amount of land being irrigated during any calendar year. All residences shall contain an individual sewage system that has been constructed to Yavapai County Health Department standards. All required permits must be obtained prior to installation. No such systems may _be installed within 100 feet of any Parcel boundary line without prior approval of the Committee. All sewage systems shall be maintained so as not to disturb surrounding Owners with offensive odors or sights and located so as to minimize grading and disturbance to existing vegetation.

6.11 Drainage Easements: The Property is hereby subject to drainage easements for drainage of storm water runoff. No person shall be entitled to alter the existing drainage patterns on any portion of the Property or materially relocate existing drainage locations in any way.

6.12 Livestock, Poultry and Domestic Animals: The intended use of the Property is for residential and recreational purposes. However, ranching, as defined herein, is permitted so long as it does not impede adjacent Owners enjoyment of their property by creating a nuisance, excessive noise, odor, health or sanitary concerns. No more than two (2) pigs or hogs may be raised for 4-H or agricultural club projects at a time. The breeding of cattle and horses for profit and horse training facilities are allowed so long as the combined total of all animals does not exceed one (1) per acre owned. Boarding facilities (except as otherwise stated herein), riding stables, dairies, kennels, and poultry farms are considered commercial use of the Property and are prohibited. All livestock, poultry and other animals (other than horses) shall be confined within a fenced area with fencing constructed of new material or the equivalent and of adequate height and strength to safely contain said animals. If barbed wire fencing is used it shall conform to the provisions set forth in Section 6.24 herein. Livestock and poultry areas shall be kept clean and odor free, with all manure removed on a regular basis. Dogs shall be kept within fenced areas or restrained on leashes.

6.13 Horses Provision: The number of horses kept on a Parcel shall not exceed the total number of animals allowed under paragraph 6.12 (1 per acre). Additionally, a suitable facility is required to be constructed to meet the maximum number of horses. At a minimum, a fully enclosed and covered barn shall be constructe4 with a number of stalls sufficient to house 50% of the total number of horses. The fenced area must equal a minimum of one acre per 2 horses, not including attached barn turnouts, working arenas, horse walker areas and round pens. The fencing of horses (horse fencing) shall be in conformance with paragraph 6.24 and shall be approved by the Committee prior to installation. It is recommended that the facade of the structures be analogous with the facade of the primary residence. Prefab metal barns are allowed provided they are sided with 50% wood or stone. The construction is to be done in a professional manner. Covered, but un-enclosed structures (Le. mare motels) are permitted for use as shades

in pastures, but are not to be considered a replacement for permanent accepted suitable facilities. Temporary structures are allowed but only in conformance with paragraph 6.4.

Professional horse trainers are allowed and shall not be considered as a commercial business, but rather as a "Ranching" activity. Riding stables open to the public are not allowed. Boarding facilities are allowed only in conjunction with a training facility, but shall not be open to the general public. "Special event" activities such as horse shows, seminars or clinics sponsored by a training facility or private individual are prohibited unless written approval from the Board is obtained. Covered and uncovered lighted arenas are allowed provided the lights are extinguished by 8 pm. Designs of all structures are to be approved by the Committee.

Horse training facilities constructed and leased out by an Owner are the responsibility of the Owner and it shall be the Owners' responsibility to take corrective action to ensure the facility is in compliance with this Declaration. It is strongly recommended that owners provide the board with a general sketch of their planned facility, including the structures planned, the proposed use, the number of animals proposed and a time frame for completion of the facility prior to submitting formal plans.

6.14 Re-sale I Additional Subdivisions: No original Parcel(s) may be resold pr sub-divided by an Owner until after eighteen (18) months from the date of initial conveyance or until after the Transition Date, which ever is sooner. Developer may grant a written variance to the required waiting period to subdivide a Parcel under the following circumstances: 1) For the purpose of constructing a primary residence on the Parcel and/or newly created Parcels; and 2) The original Parcel and any newly created Parcels may not be sold by original Owner(s) until after eighteen (18) months from the date of initial conveyance or until after the Transition Date, which ever is sooner UNLESS the Parcel offered for sale has a primary residence constructed on it. Any subdivision of Parcels must be done in strict accordance with all applicable laws including required approvals by Yavapai County and the State of Arizona, which is the sole responsibility of the Owner. Subject to state and county regulations, original Parcels may be subdivided twice, creating a maximum of three (3) Parcels, with a minimum Parcel size often (10) acres each, with the exception of Lot #23. Lot #23, which is bifurcated by the roadway, may subdivide leaving the parcel on the east side of the road as a 6.283 acre parcel and may subdivide the remaining 29.817 acres one time with a minimum often (10) acres each. All Parcels newly created by an Owner through subdividing an original Parcel must contain a minimum of 150' feet of road frontage along roads which have been previously dedicated to the Silver Saddle Ranch Property Owners Association on the Recorded Plat OR along a thirty foot (30') roadway easement created by Owner on the original Parcel for the purpose of ingress / egress, emergency vehicle access and utility line construction and maintenance to the new Parcel. A ten foot (10') wide easement shall be created along and adjacent to all other Parcel boundary lines. All easements created shall be appurtenant and of a perpetual term. Additionally, all easements shall state the party responsible for maintenance and must be recorded by Owner in the Office of the Yavapai County Recorder prior to conveyance of either Parcel to a subsequent party.

6.15     No Medical Facilities: Hospitals, clinics, and other facilities for the treatment or care of the physically or mentally ill or disabled are prohibited,

6.16 Churches or Clubs: or other institutions organized for religious worship or discussion are prohibited as are buildings used primarily as clubhouses or meeting facilities.

6.17 Garbage: No Parcel may be used for temporary or permanent storage of rubbish or trash (collectively, garbage). No garbage may be kept on any Parcel except in covered containers and screened from view from adjacent Parcels.

6.18 Junkyards, Auto Repair, Second-Hand Business, Material Storage: No junkyards, auto repair, second-hand businesses or other commercial uses that create a negative visual impact, excessive noise or congestion from traffic or parking shall be conducted on any Parcel. No storage of trucks, cars, buses, machinery, equipment or building materials shall be stored on any Parcel unless enclosed in a proper structure so as not to be visible from an adjoining Parcel or any roadway.

6.19 Nuisance Activities: The unusual, unnecessary, prolonged, or indiscriminate creation of noise, dust, fumes, odors or any other offensive activity is prohibited, including but not limited to road racing, loud music, and excessive gunfire.

6.20 Signs: No signs will be permitted (including but not limited to For Sale or For Rent signs) on Parcels until after the Transition Date: EXCEPT for address signs that identify the address and/or the Owner of the Parcel, which signs will not exceed 4 square feet. All signs are

to be in strict conformance with the laws and ordinances set forth by Yavapai County. Permits may be required. Developer reserves the right to remove any and all signs that are in violation of

the provisions in this Declaration. None of the sign restrictions in this Declaration apply to the Developer or its assigns or successors for the purpose of selling Parcels, including advertising, location, directional, or street signs. Nothing in this provision shall prohibit an Owner from attempting to sell their Parcel in accordance with and pursuant to the provisions stated herein and in Section 6.14.

6.21 Easements: With the exception of easements created for subdivision purposes referred to in Section 6.14, no further granting of easements shall occur without the express written approval of the Association or Developer. Owners will provide access to easements whenever requested by utility companies. Subject to Paragraph 6.24, no structure, including fencing, shall be constructed on the recorded easements as they are shown on the Recorded Plat. All fences placed adjacent to common roadways within the Project shall be located no closer than forty-five feet (45') from the centerline of the roadway. There is a "blanket" easement as shown on the recorded plat, for the existing water lines across the property (in their current location). Said easement is granted to the owner/lessee of the grazing rights (their successors or assigns) for purposes of repairing, replacing and maintaining the existing lines for use in watering livestock. Structures may not be placed on or over the said water lines or so close as to prohibit Lessee from accessing said lines for the purposes stated on the Recorded Plat. Developer reserves the right to grant the use of all existing easements shown on the Recorded Plates) to additional subsequent individuals or entities at its sole discretion.

6.22 Mineral Extractions: In no event shall any Owner or lessee use or cause to be used any portion of the Property, including his or her own Parcel, "for the purposes of drilling, exploring, mining, or otherwise developing any deposits of oil, minerals, or other natural resources lying above, on, or under said Property, with the exception of such drilling and exploration by the Developer or the Owner as may be necessary to produce an adequate water supply for the development of the Parcel involved pursuant to the provisions stated in Section 6.10. Nothing in this Section shall prohibit Developer from excavating Property still owned by Declarant for purposes of building or improving roadways within the Project.

6.23 Reserved Water Rights and Grazing Rights: The grazing rights to the Property, along with the rights to surface and groundwater rights have been retained by and for the exclusive use of Developer (Arizona Land LLC), or its successors and assigns or lessees. HOWEVER, each Owner may drill one (1) domestic, well per Parcel owned under the provisions of Section 6.1 O. Additionally, an Owner may fence its Parcel in order to restrict cattle and other livestock from crossing or grazing on Owner's Parcel- or any portion thereof, at which time said reserved grazing rights shall be terminated from the fenced portion of the Parcel. Providing, however, those Parcels containing retained existing waters and easements thereto, may not be fenced in such a way as to restrict access of the Developer, Lessee or livestock from accessing the water or the easement area. Any fencing shall be in accordance with the minimum standards set forth in Section 6.24 below. Provided that improvements on Owner's Parcel are not interfered with, Arizona Land LLC and its successors and assigns, retains easements across the Property as may be convenient or necessary for the use of its water rights and grazing rights, as such easements exist now or may be designated in the future by Arizona Land LLC or its successors or assigns.

6.24 Fencing: No fencing shall be constructed within the fifteen foot (15') utility easement area. All fences placed along and adjacent to common roadways must be placed a minimum of forty-five feet (45') from the centerline of the roadway. "Horse fencing", as referred to herein, shall at a minimum, be constructed of three (3) rail pipe or no-climb fencing with a top pipe rail or other material approved by the Committee and may not be constructed without prior approval of the Committee. No temporary panels shall be used for fencing. Subject to the provisions herein, Owner, at his/her expense, shall have the right to move any "pre-existing" ranch fence which goes through Owner's Parcel PROVIDING HOWEVER, so long as the grazing rights are retained, said fence is reconnected so that there is no gap in the overall fencing unless written approval has been obtained from the Lessee or owner of the grazing rights. Any fences moved and/or installed by Owner, shall be at Owner's sole expense. Barbed wire fencing may be used for other than horse fencing. HOWEVER, wherever barbed wire fencing is used it shall be constructed using "wildlife friendly" techniques whereby the fence shall have smooth wire as the bottom strand, be 18 inches above the ground, and the overall fence height shall not exceed 60 inches. Additionally, barbed wire fencing shall be constructed with the following minimal requirements: 1) Posts not more than 15' apart; 2) Not less than three stays between posts; 3) Four continuous strands of wire; and 4) Is adequate, in accordance with normal ranch standards, to contain horses and other livestock.

6.25 Environmental Protection: The beauty of the Property is in the mixture of trees and open space. Trees having a minimum trunk diameter of six inches and measuring two feet above ground level and may only be cut if the following conditions are met: 1) Are dead or dying; and 2) Removal is required to clear land for building sites, access roads, fire prevention, enable installation of utilities, view corridors, or recreational open space. In any event not more than twenty percent (20%) of anyone Parcel may be cut or cleared without written permission from the Association.

7. GENERAL PROVISIONS

7.1 Enforcement: The covenants, conditions, and restrictions contained in this Declaration shall run with the land and shall be binding upon all persons owning, leasing, subleasing or occupying any Parcel after the date on which this instrument shall have been recorded in the Office of the Recorder of Yavapai County, Arizona unless otherwise stated herein or in a variance granted by Developer or the Board. This Declaration may be enforced by the following; Declarant, Developer, Lessee, the Association, the holder of a First Deed of Trust on any Parcel, any Owner or lessee of a Parcel, or by anyone or more of said persons acting jointly; PROVIDED, HOWEVER, that any breach by reason thereof shall not defeat or adversely affect the lien of a First Deed of Trust upon any Parcel, but each and all said covenants, conditions, and restrictions shall be binding upon and effective against any Owner, lessee or occupant of said Parcel whose title thereto is acquired by foreclosure, or otherwise; and FURTHER PROVIDED that the breach of any said covenants, conditions, and restrictions may be enjoined, abated or remedied by appropriate proceedings, notwithstanding the lien or existence of any such First Deed of Trust. All instruments of conveyance or assignment of any interest in all or any party of the Property may refer to this Declaration and shall be subject thereto as though this Declaration were therein set forth in full.