Exceptional
Performance

The owners of Dean Kelly Construction, Inc. of Rapid City, South Dakota hope that you get a chance to experience first hand the quality built homes that they provide and the customer service that is second to none.
Amended Covenants for Sheridan Lake Highlands Prepared by: John K. Nooney,
Thomas Nooney Braun Solay & Bernard, LLP
1301 Omaha Street, Suite 224/PO Box 8108
Rapid City, SD 57709-8108
605/348-7516


AMENDED
DECLARATION OF COVENANTS AND RESTRICTIONS OF
SHERIDAN LAKE HIGHLANDS, INC.

THIS DECLARATION, made on the date hereinafter set forth by Dean Kelly Construction, Inc. of Rapid City, Pennington County, South Dakota, hereinafter referred to as “Declarant.”

WITNESSETH:

WHEREAS, Declarant is the owner of certain property in the city of Rapid City, Pennington County in the State of South Dakota, which is more particularly described as:

A portion of Tract B of the Boland Placer MS1252, the Southwest Quarter of the Southwest Quarter, of Section 35, less Lot H-1 of the South Half of the Southwest Quarter of Section 35 and the Southeast Quarter of the Southeast Quarter of Section 34, less Lots 1-4 of the Southeast Quarter of the Southeast Quarter, Township 1 North Range 6 East Black Hills Meridian, Pennington County, South Dakota, to be platted as Sewer Lot 1 and Lots 2 through 8 of Block 1, Lots 1 through 10 of Block 2, Lots 1 through 8 of Block 3, reservoir lot in Well Lot 1 through Well Lot 3, and dedicated right-of-way of Sawmill Road, Sienna Meadows, and Ironwood Ridge, Sheridan Lake Highlands.

NOW, THEREFORE, Declarant hereby declares that all of the properties described above shall be held, sold and conveyed subject to the following easements, restrictions, covenants and conditions, which are for the purpose of protecting the value and desirability of, and which shall run with the real property and be binding on all parties having any right title or interest in the described properties or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof.

ARTICLE I
DEFINITIONS

“Association” shall mean and refer to the Sheridan Lake Highlands, Inc., its successors and assigns.


“Owner” shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot or Residence which is part of the Properties, including contract buyers, but not excluding those having such interest merely as security for the performances of an obligation.

“Properties” shall mean and refer to that certain real property hereinbefore described, and such additions thereto as may hereinafter be brought within the jurisdiction of the Association.

“Lot” shall mean and refer to any parcel of land shown upon any recorded subdivision map of the Real Property.

“Residence” shall mean any single family dwelling.

“Subdivision” means the Sheridan Lake Highlands.

ARTICLE II
MEMBERSHIP AND VOTING RIGHTS

Section 1: Membership. Except as otherwise provided herein, every Owner of a lot or Residence which is subject to assessment shall be a member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any lot or Residence which is subject to assessment.

Section 2: Membership Classes. The Association shall have classes of voting membership:

Class A: Class A members shall be all Owners, including contract buyers, with the exception of the Declarant, and shall be entitled to one (1) vote for each lot owned. When more than one person holds an interest in any lot, all such persons shall be members; however, all such members when considered in total, shall never have more than one vote per any one lot.

Class B: Class B member shall be the Declarant and shall be entitled to three votes for each lot owned. When Declarant sells any lot(s), upon such sale, the Owners of such lots shall become Class A members and shall be entitled to all rights otherwise set forth herein. Class B members shall cease and be converted to Class A membership upon the happening earlier of those events set forth below:

A. When the total votes outstanding in Class A membership equal the Class B membership; or

B. 5 years after the date this Declaration of Covenants is executed.

Class C: The Class C member will be the Owner of those lots which are held for the benefit of the Owners, including but not limited to the Reservoir Lot, Sewer Lot, Well Lots and any other lots held for the benefit of the members of the Association, and it is specifically acknowledged that this may be the Association, the Declarant, or a successor/assign of the Declarant. This shall include any additions to those lots which exist upon the initial platting of the property or subsequently acquired lots for the benefit of the Association which are particularly held by the Association. The Association shall have no vote as it concerns these lots, and these lots shall not be subject to any assessment.

ARTICLE III
EASEMENTS FOR ENCROACHMENTS

If any lot or lot improvement there on, now or here after, encroaches upon any other lot, as a result of the construction of the building or other improvements, or for any other reason, a valid easement shall be deemed to exist for the encroachment and for the maintenance of the same shall exist so long as the building or other improvements shall exist. In the event any Residence or improvement shall be partially or totally destroyed or taken as a result of condemnation or eminent domain proceedings, and then rebuilt, encroachment due to this rebuilding shall be permitted, and valid easements for such encroachment and the maintenance thereof shall exist so long as the building or other improvements shall stand. The foregoing encroachments shall not be construed to be encumbrances affecting the market ability of title to any lot.

ARTICLE IV
COVENANT FOR MAINTENANCE ASSESSMENTS

Section 1: Creation of Lien and Personal Obligation of Assessment. Until such time as the same has been changed by the Board of Directors, the Declarant, and each Owner of any lot or dwelling located within the real property created by the Association as follows:

A. Annual Assessments and/or Monthly Assessments;

B. Special Assessment for capital improvements and services to be established and collected as hereinafter provided; and

C. The Annual and/or Monthly and Special Assessments together with interest, costs, and reasonable attorney fees shall be a charge on the land against each lot to the extent it is not paid, and should be a continuing lien upon such lot until it has been paid. Such lien shall be a personal obligation of the person who was the Owner at the time of the assessment. Personal obligations of any assessment shall not pass to the successor in interest to such property unless it is expressly assumed by them.

Section 2: Purpose of the Assessment. The assessment levied by the Association shall be used exclusively to promote the purposes of the members and the operation and maintenance of facilities and utilities in the event the Water System and/or Sewer System (as the same are defined here) are transferred to the Association. This shall include the water wells, water distribution and transmission lines, sewer facilities exclusive of those which solely service one lot and/or Residence, road maintenance, repair and replacement, and the common lots owned, used for Sheridan Lake Highlands, including, but not limited to, the reservoir lot, well lots, and sewer lots, without regard to who owns such lots or provides these related services.

A. All operating expenses of the Association as it concerns those services provided by the Association on behalf of its members, including any expenses or costs related to the Common lots, which expense shall be billed by the Declarant or its successor to the Association.

B. The cost of necessary management and administration, including fees paid to any management agent or any agent retained by the Association as it concerns any of those matters identified herein.

C. The cost of funding all reserves as determined by the Association, including, but not limited to, general operating reserves and/or reserves for replacement on any existing facilities or anticipated future capital expenditures.

D. Until June 1, 2006, other than the Declarant, the maximum monthly assessment shall be $75.00 per lot.

1. From and after June 1, 2006, the annual and/or monthly assessment shall be set by the membership at their annual meeting.

2. Declarant shall not be levied any type of assessment for any lot held on sale or under development or construction. The assessment shall be first levied on each lot when the Declarant conveys such lot to the first Class A owner of such lot. No assessment of any type shall be assessed against any lot within the Subdivision, which lot is held for the common use or enjoyment of some or all of the Owners, including, but not limited to, the reservoir lot, well lots, and/or sewer lots.

3. In the event that while Class B membership still exists, assessed fees collected for the Association fail to adequately meet normal expenses, then Declarant must pay fees on lots included in the property, up to one-third (1/3) of the applicable share of each lot, however, the Board of Directors shall have a good faith obligation to make certain their monthly and/or annual assessments are sufficient without any assessment against the Class B membership. Under no circumstances shall Class C shares be assessed any monthly assessment, special assessments or any other assessment of any type of nature.

4. The Association shall take all reasonable and necessary steps to make certain that the annual assessments are sufficient to cover all of those expenses identified above, as well as to provide for sufficient funds for any all reserves necessary on a going forward basis. In the event that the Association deems it appropriate, additional assessments may be assessed against the Owners as more fully set forth herein.

Section 3: Special Assessments.

A. In addition to the monthly assessments authorized above, the Association may levy special assessments to defray the cost of providing services. In the event the Association’s Board of Directors, in its sole discretion, shall determine that such are necessary to meet the costs for any services, the same shall be due immediately upon levy by the Board of Directors; provided the same shall not exceed in any month the actual cost incurred by the Association in excess of regular assessment payments.

Section 4: Notice and Quorum for Any Action Authorized under Sections 3 and 4. Written notice of any meeting called for the purpose of taking action authorized under Section 3 and 4 shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. At first such meeting called, the presence of members or of proxies entitled to cast sixty (60) percent of all the votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than thirty (30) days following the proceeding meeting.

Section 5: Uniform Rate of Assessment. Except as otherwise provided herein, both annual and special assessments must be fixed at a uniform rate for all lots of similar type and may be collected on a monthly basis. In the event that the Sewer System is transferred to the Association, any assessment, particularly identifiable to the sewer lot and/or the facilities necessary to distribute waste from any lot which does not have a private septic system sufficient to handle residences, that those costs shall be borne solely by the Owners who benefit from such facilities, including, but not limited to, sewer facilities necessary to transport sewer from a particular lot to a sewer lot, the maintenance, repair, and replacement of those facilities, and/or the upkeep of such associated appurtenances.

Section 6: Date of Commencement of Annual Assessments; Due Dates. The annual assessments provided for herein shall commence as to all lots on the first day of the month following filing of the warranty deed for a Dwelling. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the annual assessment of each lot at least thirty days (30) in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified lot have been paid. A properly executed certificate of the Association as to the status of assessments on a lot is binding upon the Association as of the date of its issuance.

Section 7: Effect of Nonpayment of Assessments; Remedies of the Association. Any assessment not paid within thirty days (30) after the due date shall be charged interest at the annual percentage rate specified by law upon unpaid judgements. The Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien against the property. No Owner may waive or otherwise escape liability for the assessments provided for abandonment of his Lot.

ARTICLE V
USE, COVENANTS, AND RESTRICTIONS

The following covenants shall apply to the Townhomes Sheridan Lake Highlands, Inc.:

Section 1: Use of Lot or Residence. Each Lot or Residence shall be used for residential purposes only and not for any business, trade, commercial or industrial purpose whatsoever except that individuals may conduct not-nuisance, unoffensive businesses from their homes providing that such activities do not result in excessive traffic or are otherwise deemed offensive by the Association.

Section 2: Sales Facilities of Declarant. Notwithstanding any provision in Section 1, Declarant, its agent, employees and contractors shall be permitted to maintain during the period of construction and sale of any Dwelling or any building or facility as Declarant may choose, such facilities as in the sole opinion of the Declarant may be reasonably required, convenient, or incidental to the construction, sale or rental of Lots and Residences including, but without limitation, a business office, construction and storage area, signs, model Residences, sales offices and parking areas.

Section 3: Construction. All construction shall be original in that no previously constructed dwelling, trailer house, or mobile home can be permitted to be placed on any properties: no basement, trailer, vehicle or structure of any kind except a completed Residence shall be occupied or used for residential purpose at any time. Each Residence extended as a ranch style shall have a minimum of 1,500 finished square feet on the main floor and a two-car garage. To the extent the Residence is a two story above grade dwelling, it shall have 2,000 square feet of finished space above grade. Every Residence shall have at least ten percent of its front elevation either rock, brick, Dryvit, or timber accents. To the extent that any residence has any unattached structures, the unattached structure, be it a garage, storage unit, or shop, shall be constructed in a manner consistent with the Residence.

Section 4: Exterior Appearance. The exterior of every building shall be composed of one or a combination of the following: Hardboard siding, stone or brick veneers, and Dryvit material approved by Board of Directors. All exterior surfaces shall be painted or stained an earth tone color, unless otherwise approved by the Board of Directors, subject to the provisions set forth in Section 3 above.

Section 5: Water System. Each Dwelling designed for occupancy by humans shall within thirty (30) days after completion of the construction be connected to the water system which provides water to the Subdivision. The Lot Owner shall be responsible for the water tap fee and all costs associated with connecting to the water main.

Section 6: Completion of Construction. Any building, addition, or other improvement commenced on Any Lot shall be prosecuted diligently to completion and shall be completed within twelve (12) months from the commencement of the construction unless such completion is prohibited by inclement weather or disaster.

Section 7: Appearance and Improvements of Lot. All improvements on each Lot must be maintained by Lot Owner so as to remain in a state of good repair, neat and well kept in appearance. The Association shall provide mowing and watering and it is the responsibility of each Lot Owner to see that any lawns, landscaping or gardens are maintained in a neat and orderly condition. Firewood or other combustible material must be stacked neatly against the rear of the house or garage, or in such other places as are not visible from neighboring residences or from the street. Any additional landscaping, including, but not limited to shrubbery, plantings, gardens, and flowers must be approved by the Board of Directors prior to their use or development.

Section 8: Landscaping. All natural surface areas disturbed by construction shall be returned promptly and as neatly as possible to their natural state. To the extent that any of the lot is landscaped, it shall be landscaped within nine (9) months after completion of the home and shall at all times be maintained in good condition and repair. The lot shall be retained to its natural condition and shall not be irrigated either by aboveground or underground sprinklers. The Board of Directors shall have a right to adopt policy or policies as it concerns watering of lawns, landscaping, and/or gardens. Any violation of these provisions shall entitle the Association to injunctive relief.

Section 9: On Street Parking. On street parking is restricted to emergencies and deliveries and no other parking on the street is permitted. No overnight parking on streets is permitted. No boat, truck, trailer or camper shall be parked or stored on any Lot or portion thereof so as to be visible from any adjacent street or Lot in the near vicinity of substantially similar grade. No automobile shall be parked or left on any portion of a Lot other than inside a garage and shall not be visible unless it is in operating condition with current license plates.

A. Boats, campers, trailers or recreational vehicles may be kept on a Lot provided that they are kept in the garage or storage facility. They may be kept in a semi-enclosed area, which is concealed, from the surrounding street and neighborhood with approval of the Board of Directors.

B. The outdoor repair of automobiles is prohibited upon any portion of the property as well as any other activities, which may be or become an annoyance or nuisance to the neighborhood.

C. The Association may, in the discretion of the Board of Directors, provide and maintain a similar area designated for the parking of boats, campers, or other recreational vehicles, or for the undertaking of such repairs, or may temporarily waive this prohibition upon the written application of a member. Guests who arrive with recreational vehicles will be allowed to keep them upon such Lot for a maximum of Forty-eight (48) Hours.

Section 10: Pets. The maintenance, keeping, boarding, and/or raising of animals, livestock, or poultry of any kind, regardless of number, shall be, and is hereby prohibited on any Lot or within any dwelling on the property, except that this shall not prohibit the keeping of dogs, cats, or caged birds as domestic pets provided that they are not kept, bred, or maintained for commercial purposes and provided further, that such domestic pets are not a source of annoyance or nuisance to the community or members. Pets shall be inoculated as may from time to time be required by law. No animal shall be permitted to run at large. Any animal taken outside of the dwelling must be on a leash and all fecal deposits must be collected by the pet owner for sanitary disposal. The total number of cats and dogs shall be limited to three (3) per household.

Section 11: Annoyance. No obnoxious or offensive activities shall be carried upon or on any Lot nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood. No firearms shall be discharged within the Subdivision. No noisy recreational vehicles, such as motorcycles, dirt bikes, or snowmobiles shall be allowed to operate within the Planned Residential Development, except for access from an Owner’s to a public Right of Way.

Section 12: Signs. No sign of any kind shall be displayed to the public view or any Lot except for entrance signs, directional signs, signs for traffic control or safety, community “theme areas” and such signs may be erected and maintained by the Declarant or the Association. No signs or advertising devices of any character shall be erected, posted, or displayed upon, in, or about any Lot or Dwelling within the property, provided, however, that one temporary real estate sign not exceeding nine (9) square feet in area may be erected upon any lot or attached to any Residence placed upon the market for sale or rent. Any such temporary real estate sign shall be removed promptly following the sale or rental of such Lot or Dwelling. This covenant shall not apply to the signs of the Declarant during the period of sales activity of the Declarant in sale of the Planned Residential Development.

Section 13: Exterior Lighting. Declarant will install exterior lighting at the time of initial construction. Any additional exterior lighting must be approved by the Board of Directors prior to installation.

Section 14: Fences. No fence, wall or similar type of barrier of any kind shall be constructed, erected or maintained around the perimeter of any Lot for any purpose whatsoever, and no fence, wall or similar type of barrier shall be erected within the confines of any such Lot except those which are approved by the Board of Directors.

Section 15: Mailboxes. The Developer will provide standard mailboxes for each Lot Owner in a Location designated by the developer. No other mailboxes will be permitted on any Lot.

Section 16: Towers and Antennas. There shall be no towers, antennas, or satellite dishes (excluding eighteen-inch (18”) dishes) located on any Lot unless specifically approved by the Board of Directors.

Section 17: Trash. None of the property shall be used or maintained as a dumping ground for old cars, rubbish, or trash. All garbage or similar waste shall be kept in sanitary containers and other equipment for the disposal of garbage and shall be kept in clean, sanitary and fire safe condition. Trash and garbage containers shall not be permitted to remain in public view except on days of trash collection. No incinerators shall be kept or maintained upon any property. The Board of Directors may specify type and size of containers approved for the Planned Residential Development.

Section 18: Motor Vehicles. No motor vehicles except such as are in normal operating condition and in average daily use shall be kept on the property. Except for occasional common necessary repairs, no private repairs shall be permitted and no rebuilding or refinishing of such shall not be permitted. Recreational vehicles may be stored on the property as more fully set forth in Section 10 above; however, recreational vehicles shall not be utilized on the property.

Section 19: Lot Division. No Lot shall be divided or subdivided and no portion of any lot other than the entire Lot shall be transferred or conveyed for any purpose. No purpose of any dwelling, other than the entire dwelling, shall be leased. The provisions of this subsection shall not apply to the Declarant and further, the provisions hereof shall not be construed to prohibit the granting of any easement or right-of-way to any municipality, political utility, or other public body or authority, or to the Association.

Section 20: Garage Doors. Garage Doors and the doors of any other storage room or the like shall be maintained in a closed position whenever possible. No windows shall be permitted in the vehicle entrance door of such garages.

Section 21: Clothes Lines, Etc. There shall be no outdoor hanging of clothing or household fabrics and there shall be no clotheslines or poles for such purposes permitted.

ARTICLE VI
WATER SYSTEM

Section 1: Mutual Construction. The Declarant shall install the initial water well(s), water storage facilities, water mains necessary to transport water from the water storage facilities through the water mains within the Subdivision and fire hydrants, collectively “Water System”. The Owners shall be responsible for construction of the Water System from the water main to their respective Residences inclusive of the water meters for each metered Residence or any structures located on such lots. Upon the substantial completion of the construction of the initial water facilities and related infra-structure as, the Declarant may transfer ownership of the same to the Association by way of a Bill of Sale, free and clear of any liens and/or encumbrances; however, nothing herein obligates the Declarant to transfer ownership of the Water System to the Association, as the Declarant may retain ownership of the Water System or may affect a transfer of the same to its successor and/or assignee. Such successor or assignee shall be entitled to affect a transfer to the Association, at such later date. Upon the transfer, the Association shall be responsible for all maintenance, repair, and replacement, except as otherwise identified herein.

Section 2: Monthly Billings. The Owner of the Water System, shall bill the Owners for their respective use and consumption of water on a monthly basis, which sum shall include a minimum monthly fee to each Owner without regard to actual consumption.

Section 3: Water Tab Fee: The Owner of each lot (Class A Member) shall be assessed a water tab fee upon the transfer of a lot to such Owner. The water tab fee shall be established by the Owner of the Water System.

Section 4: Compliance With Laws. The owner of the Water System shall be responsible to make certain that the Water System is in compliance with all applicable laws, including, but not limited to, all testing and quality requirements imposed by the South Dakota Department of Environment and Natural Resources and any and all other governmental entities.

Section 5: Declarant’s Right of Future Access. Declarant shall be entitled to utilize the Water System for future development of Real Property generally contiguous to the subdivision. To effect its rights, Declarant shall give notice to the Association or such other entity who may then own the Water System of Declarant’s intent to utilize the Water System for the development of other Real Property. Declarant shall be entitled to utilize the water storage facilities and such other parts of the then existing Water System for purposes of providing water to other Real Property owned directly or indirectly or developed directly or indirectly by the Declarant and which is generally contiguous to the Subdivision. To the extent it is necessary to make any incremental additions to the Water System, Declarant shall be responsible for those incremental costs as it concerns the construction of additional facilities for the water system to accommodate Declarant’s rights as more fully set forth herein, and to the extent there are any ongoing repair, maintenance or costs associated with operating the system which are directly related to Declarant exercising its rights herein, Declarant shall be responsible for such costs.



ARTICLE VII
SEWER/SEPTIC FACILITIES

Section 1: Sewer System. Each owner shall be responsible to construct and maintain a septic system which complies with all applicable laws. In the event it is determined by an individual with the requisite experience and/or skill that conventional septic system cannot be constructed on any lot to the extent that a drain field cannot be constructed so as to properly process sewage from any particular lot, such lots shall utilize the common Sewer/Septic Facilities as constructed by the Declarant shall include within the subdivision, an underground transmission system consisting of underground pipes located within the subdivision which shall transport the waste water from any septic tank located on such lots to the drain field(s) located on the Sewer Lot. The Declarant shall not be responsible for constructing any sewer facilities except those which are constructed during the initial construction within the subdivision and in the event that any lot whose sewage is originally processed by a conventional septic system needs to connect to the sewer facilities at some later date, the Owner of such lot shall be responsible for constructing those underground facilities necessary to connect to that system originally constructed by the Declarant. Any lot which cannot construct a septic system to comply with applicable laws shall construct a septic system on the Sewer Lot which shall include drain fields and related underground facilities necessary to transport their sewage to a common facility which shall be constructed by the Declarant as part of the initial construction which sewage shall then be transported to the Sewer Lot. All Owners of the lots who utilize the Sewer Lot shall be assessed an assessment necessary to cover all costs associated with such facilities and Sewer Lot, inclusive of any and all costs necessary for repair, maintenance, or replacement of such facilities or for the construction of additional facilities as the same may be required at a later date. The Declarant and/or its successors or assigns shall own the Sewer System unless or in the event the Declarant and/or its successors or assigns determine at a later date to assign the same to the Association. To the extent that the Sewer System is assigned to the Association, it shall be assigned to the Association free and clear of any liens and/or encumbrances.

Section 2: Declarant’s Right of Future Access. Declarant shall be entitled to utilize the common septic system facilities for future development of property generally contiguous to the Subdivision. These rights shall include a right to utilize the underground transport facilities and the drain fields located within the Sewer Lot. To the extent it is necessary to make any additions to the common sewer facilities, or to make those other modifications or additions to the existing common sewer facilities for purposes of adding additional capacity to provide common sewer facilities for other real property under Subdivisions owned by and/or developed by the Declarant, such incremental costs shall be paid by the Declarant, and to the extent there are any operating, maintenance or repair costs to the common sewer facilities, and the Declarant has exercised the rights herein, such incremental costs shall be allocated between the parties.






ARTICLE VIII
ENFORCEMENT/SEVERABILITY/AMENDMENT

Section 1: Enforcement. In the event of any violation of any Covenant herein contained, then the same shall be considered to have been undertaken in violation of these Covenants and without the approval of the Declarant or Board of Directors required herein. Upon written notice from the Declarant or Board of Directors, such violation shall be promptly removed or corrected. In the event the same is not removed or corrected or violation is not otherwise terminated within fifteen (15) days after notice that such violation exists, then the Association shall have the right through its agents and employees to enter upon such Lot and to take such steps as may be necessary to remove or otherwise terminate such violation and the cost thereof shall be assessed against the Lot upon which such violation occurred. Such costs shall include reasonable attorney fees and expenses of litigation. A statement for the amount thereof shall be rendered to the Owner of such Lot at which time the assessment shall become due and payable and a continuing lien upon said Lot and an obligation of the Owner and may be enforced as provided in Article IV Section 10 of this Declaration and the Owner of such Lot or Unit shall be responsible and liable for the payment of same, including reasonable attorney fees incurred by Declarant or the Association. The Association shall have the further right through its agents, employees, or committees to enter upon and inspect any Lot at any reasonable daylight hour for the purpose of ascertaining whether any violation of the provisions of these covenants exist on any such Lot; provided, however, no such entry and inspection shall be taken without resolution of the Declarant or the Board of Directors and after reasonable notice to the Owner of such Lot or Unit. Neither the Association nor any such agent or employee shall be deemed to have committed a trespass or other wrongful act by reason of such entry or inspection.

Failure by the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

Section 2: Severability. In validation of any one of these covenants or restrictions by judgement of court order shall in no way affect any other provisions which shall remain in full force and effect.

Section 3: Amendment. The covenants and restrictions of this Declaration shall run with and bind the land, for a term of twenty (20) years from the date this declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. This Declaration may be amended during the first twenty (20) year period by instruments signed by not less that seventy-five (75) percent of the Lot Owners, and thereafter by an instrument signed by not less than sixty-six and two-thirds percent (66-2/3) of the Lot Owners. Any amendment must be recorded.

IN WITNESS WHEREOF, the undersigned being the Declarant herein, has hereunto set its hand and seal this _____ day of ___________________, 2006.



Declarant:


____________________________________ By: Ryan L. Kelly,
Dean Kelly Construction, Inc.

Its: ____________________________________


STATE OF SOUTH DAKOTA )
) SS.
COUNTY OF PENNINGTON )

On this ____ day of ___________, 2006, before me, personally appeared Ryan L. Kelly, an officer of the Declarant, known to me or satisfactorily proven to be the person whose name is subscribed to the within instrument and acknowledgement that he executed the same for the purposes therein contained.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.


____________________________________
Notary Public - South Dakota
(SEAL) My Commission Expires:_______________