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					          Articles of Incorporation
Red Rock Country Club Homeowners Association
     Audited Annual Financial Statements
Red Rock Country Club Homeowners Association
                   Budget
Red Rock Country Club Homeowners Association
12/15/2010                                         854 RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                                                     Page: 1
2:21 PM                                                         BUDGET LISTING - OPERATING
                                                                        12/31/2011

GL ACCT #                               Jan        Feb        Mar        Apr        May        Jun         Jul       Aug        Sep        Oct        Nov        Dec     TOTALS

                REVENUE
0401         ASSOCIATION ASSMT      273,665    273,665    273,665    273,665    273,665    273,665    273,665    273,665    273,665    273,665    273,665    273,665    3,283,980
0412         GATE CARDS/TRANSP        1,862      1,393      1,149        877      1,197      1,621      1,362      1,365      3,746      4,945      2,237      1,496       23,250
0423         BAD DEBT EXPENSE       (37,150)   (37,150)   (37,150)   (37,150)   (37,150)   (37,150)   (37,150)   (37,150)   (37,150)   (37,150)   (37,150)   (37,150)    (445,800)
0435         DESIGN REVIEW              258        258        258        258        258        258        258        258        258        258        258        262        3,100
0441         LATE FEES & INTER        3,183      3,183      3,183      3,183      3,183      3,183      3,183      3,183      3,183      3,183      3,183      3,187       38,200
0442         NEWSLETTER SPONSO          200        200        200        200        200        200        200        200        200        200        200        200        2,400
0451         OPERATING INTERES          333        333        333        333        333        333        333        333        333        333        333        337        4,000
0454         SANCTIONS & FEES         2,167      2,167      2,167      2,167      2,167      2,167      2,167      2,167      2,167      2,167      2,167      2,163       26,000
04540001     COMMUNITY STANDAR       17,333     17,333     17,333     17,333     17,333     17,333     17,333     17,333     17,333     17,333     17,333     17,337      208,000
04590001     PARKING PERMITS            276        275        276        275      1,920      2,320      1,280        276        275        276        275        276        8,000
0498         TRANSFER TO RESER      (45,080)   (45,080)   (45,080)   (45,080)   (45,080)   (45,080)   (45,080)   (45,080)   (45,080)   (45,080)   (45,080)   (45,082)    (540,962)
                                    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯
                TOTAL REV           217,047    216,577    216,334    216,061    218,026    218,850    217,551    216,550    218,930    220,130    217,421    216,691    2,610,168

                EXPENSES

                 SALARIES & BENEFITS
0505         SALARIES & BENEFI       37,572     35,829     42,169     38,502     40,337     40,337     38,502     42,169     40,337     38,502     40,337     60,643     495,236
                                    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯
                 TOTAL SAL           37,572     35,829     42,169     38,502     40,337     40,337     38,502     42,169     40,337     38,502     40,337     60,643     495,236

                 ADMINISTRATIVE & GENERAL
0553         AUDIT/TAX RETURNS            0          0          0          0          0          0          0          0          0          0          0      6,500       6,500
0557         DUES/SUBSCRIPTION          144        144        144        144        144        144        144        144        144        144        144        141       1,725
05570003     OMBUDSMAN OFFICE             0          0          0          0          0          0          0          0          0      3,351          0          0       3,351
0561         ATTORNEY/COLLECTI          333        333        333        333        333        333        333        333        333        333        333        337       4,000
0604         QUICKPASS PLAIN &        5,427      5,427      5,427      5,427      5,427      5,427      5,427      5,427      5,427      5,427      5,427      5,421      65,118
0562         LEGAL FEES/ATTORN        2,917      2,917      2,917      2,917      2,917      2,917      2,917      2,917      2,917      2,917      2,917      2,913      35,000
0565         MANAGEMENT FEES          3,650      3,650      3,650      3,650      3,650      3,650      3,650      3,650      3,650      3,650      3,650      3,650      43,800
0567         MEETING EXPENSE             58         58         58         58         58         58         58         58         58         58         58         62         700
0568         NEWSLETTER                   0      2,000          0          0      2,000          0          0      2,000          0          0      2,000          0       8,000
0569         OFFICE SUPPLIES            667        667        667        667        667        667        667        667        667        667        667        663       8,000
05690002     OFFICE EQUIPMENT/        1,000      1,000      1,000      1,000      1,000      1,000      1,000      1,000      1,000      1,000      1,000      1,000      12,000
05690003     OFFICE SUPPLIES-P          833        833        833        833        833        833        833        833        833        833        833        837      10,000
0571         PROFESSIONAL FEES        2,083      2,083      2,083      2,083      2,083      2,083      2,083      2,083      2,083      2,083      2,083      2,087      25,000
0572         POSTAGE                  1,268      1,268      1,268      1,268      1,268      1,268      1,268      1,268      1,268      1,268      1,268      1,272      15,220
0573         TELEPHONE                1,052      1,052      1,052      1,052      1,052      1,052      1,052      1,052      1,052      1,052      1,052      1,052      12,624
05790001     MILEAGE/AUTO               125        125        125        125        125        125        125        125        125        125        125        125       1,500
0590         WEB HOSTING                231        231        231        231        231        231        231        231        231        231        231        229       2,770
05940001     COMMUNITY EVENTS             0          0          0          0          0      3,000          0          0          0          0          0          0       3,000
                                    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯
                 TOTAL ADM           19,788     21,788     19,788     19,788     21,788     22,788     19,788     21,788     19,788     23,139     21,788     26,289     258,308

                 CONTRACT SERVICES
0507         CONTRACT LABOR-HA        167          167        167        167        167        167        167        167        167        167        167        163       2,000
05730004     SECURITY TELEPHON         95           95         95         95         95         95         95         95         95         95         95         95       1,140
05790006     HOLIDAY DECORATIO          0            0          0          0          0          0          0          0          0      7,500      3,750      3,750      15,000
0605         CLEANING/JANITORI        690          690        690        690        690        690        690        690        690        690        690        690       8,280
0619         LANDSCAPE MAINT       32,500       32,500     32,500     32,500     32,500     32,500     32,500     32,500     32,500     32,500     32,500     32,500     390,000
06190001     LANDSCAPE EXTRAS       1,045        1,045      4,006      1,045      1,045      4,846     23,196      1,045      1,045      9,206      1,045      1,045      49,614
0625         PEST CONTROL             125          125        125        125        125        125        125        125        125        125        125        125       1,500
12/15/2010                                       854 RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                                               Page: 2
2:21 PM                                                       BUDGET LISTING - OPERATING
                                                                      12/31/2011

GL ACCT #                              Jan      Feb       Mar        Apr      May        Jun         Jul       Aug       Sep        Oct       Nov        Dec     TOTALS

0632         STORAGE                   121       121       121       121       121       121        121        121        121       121        121       126        1,457
06350100     SECURITY VEHICLE        2,343     2,343     2,343     2,343     2,343     2,343      2,343      2,343      2,343     2,343      2,343     2,340       28,113
0637         SECURITY SERVICE       86,965    78,666    85,758    82,992    86,965    93,744     86,965     85,758     84,199    85,758     84,199   100,132    1,042,101
0639         LIGHTING MAINTENA         833       833       833       833       833       833        833        833        833       833        833       837       10,000
                                   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯
                TOTAL CON          124,884   116,585   126,638   120,911   124,884   135,464    147,035    123,677    122,118   139,338    125,868   141,803    1,549,205

                REPAIRS & MAINTENANCE
0652         ACCESS SYSTEM REP      1,458      1,458     1,458     1,458     1,458     1,458      1,458      1,458      1,458     1,458      1,458     1,462      17,500
0672         REPAIRS & MAINT G      1,083      1,083     1,083     1,083     1,083     1,083      1,083      1,083      1,083     1,083      1,083     1,087      13,000
                                  ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯
                TOTAL REP           2,541      2,541     2,541     2,541     2,541     2,541      2,541      2,541      2,541     2,541      2,541     2,549      30,500

                PARTS & SUPPLIES
0705         GATEHOUSE SUPPLIE       1,500     1,500     1,500     1,500     1,500     1,500      1,500      1,500      1,500     1,500      1,500     1,500      18,000
07090001     GATE TRANSPONDERS       1,379     1,379     1,379     1,379     1,379     1,379      1,379      1,379      1,379     1,379      1,379     1,379      16,548
07200003     PARK SUPPLIES             308       308       308       308       308       308        308        308        308       308        308       312       3,700
                                   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯
                TOTAL PAR            3,187     3,187     3,187     3,187     3,187     3,187      3,187      3,187      3,187     3,187      3,187     3,191      38,248

                UTILITIES
0751         ELECTRICITY             5,340     4,697     4,749     4,085     3,760     3,739      3,807      3,734      3,860     3,959      4,425     6,145      52,300
0758         WATER                   3,479     3,854     6,270     5,807    11,360    20,096     25,035     20,402     18,761    12,739      7,754     4,270     139,827
                                   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯
                TOTAL UTI            8,819     8,551    11,019     9,892    15,120    23,835     28,842     24,136     22,621    16,698     12,179    10,415     192,127

                 TAXES
0805         REAL ESTATE TAXES        300         0         0         0         0         0       1,095         0          0         0          0         0        1,395
0807         INCOME TAXES             100       100       100       100       100       100         100       100        100       100        100       100        1,200
                                   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯
                TOTAL TAX             400       100       100       100       100       100       1,195       100        100       100        100       100        2,595

                 INSURANCE
0851         DIRECTORS & OFFIC         604       603       664       664       664       664        664        664        664       664        664       664       7,847
0853         ASSOC MASTER POLI       2,962     2,963     2,963     2,963     2,962     2,963      2,963      2,963      2,962     2,963      2,970     2,971      35,568
0855         EXCESS LIABILITY          818       818       818       818       818       818        818        818        818       818        818       818       9,816
                                   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯
                TOTAL INS            4,384     4,384     4,445     4,445     4,444     4,445      4,445      4,445      4,444     4,445      4,452     4,453      53,231

                OTHER EXPENSES
0894         DEPRECIATION EXPE        728       728       728       728       728       728        728        728        728       728        728       731        8,739
                                   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯
                TOTAL OTH             728       728       728       728       728       728        728        728        728       728        728       731        8,739

               TOTAL OPERA         202,303   193,693   210,615   200,094   213,129   233,425    246,263    222,771    215,864   228,678    211,180   250,174    2,628,189
                                   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯

                NET OPERAT          14,744    22,884     5,719    15,967     4,897   (14,575)   (28,712)    (6,221)     3,066    (8,548)     6,241   (33,483)    (18,021)
                                   –––––––   –––––––   –––––––   –––––––   –––––––   –––––––    –––––––    –––––––    –––––––   –––––––    –––––––   –––––––    ––––––––
                   Bylaws
Red Rock Country Club Homeowners Association
                  BYLAWS

                     0F

RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION
                               TABLE OF CONTENTS

                                                              Paae

ARTICLE I

      NAME AND LOCATION                                          -1-

ARTICLE II
      DEFINITIONS                                                -1-

ARTICLE III
      MEMBERS

      Section 3.1. Voting Rights                                 -1-
      Section 32. Proxies
      Section 3.3. Vote Appurtenant to Unit                      -3-
      Section 3.4. Meetings of the Association                   -3-
      Section 3.5. Notice of Meetings                            -3-
      Section 3.6. Special Meetings                              -4-
      Section 3.7. Quorum                                        -5-
      Section 3.8. Suspension of Voting Rights
      Section 3.9. Procedural Rules for Conducting Meetings      -6-

ARTICLE IV
     VOTING RIGHTS                                                   -6-

      Section 4.1 Voting                                             -6-
      Section 4.2 Appointment of Board                               -6-

ARTICLE V
      BOARD OF DIRECTORS                                             -7-

       Section 5.1. Number                                           -7-
       Section 5.2. Term of Office                                   -7-
       Section 5.3. Removal and Successors                           -7-
       SectiOn 5.4. Compensation                                     -8-
       Section 5.5. Action Taken Without Meeting                     -8-

 ARTICLE VI
       NOMINATION AND ELECTION OF DIRECTORS                           -8-

 ARTICLE VII
       MEETINGS OF THE BOARD OF DIRECTORS                             -8-

       Sectipn 7.1. Organizational Meeting of Board                   -8-
       Section 7.2. Regular Meetings of Board                         -8-
       Section 7.3. Special Meetings of Board                         -9-
     Section 7.4. Quorum for Board Meetings                     -9-

ARTICLE VIII
     POWERS AND DUTIES OF THE BOARD OF DIRECTORS                -9-

     Section B 1. Powers and Duties                             -9-

ARTICLE IX
     OFFICERS AND THEIR DUTIES                                 -10-

     Section 9.1. Enumeration of Offices                       -10-
     Section 9.2. Election of Officers                         -10-
     Section 9.3. Term                 -                       -10-
     Section 9.4. Special Appointments                         -10-
     Section 9 5. Resignation and Removal                      -10-
     Section. 9.6. Vacancies                                   -11-
     Section 9.7. Multiple Offices                             -II-
     Section 9.8. Duties                                       -11-
     Section 9.9. Authonty to Sign                             -12-

ARTICLE X
     BOOKS AND RECORDS                                         -12-

ARTICLE Xl
     COMMIUEES                   .                             -12-

ARTICLE Xli
     ASSESSMENTS                                               -13-

ARTICLE XIII
     CORPORATE SEAL          -                                 -13-

ARTICLE XIV                                        .   -   -
     NOTICE AND HEARING PROCEDURE                               -13-

ARTICLE XV
     AMENDMENTS AND OTHER DOCUMENTS                             -13-

      Section 15.1. Amendment.                                  -13-
      Section 15.2. Other Documents                             -14-

 ARTICLE XVI
       MISCELLANEOUS                                            -14-

      Section 16.1. Fiscal Year                                 -14-
 -    Section 16.2. Notices                                     -14-




                                              Ii
                                          BYLAWS

                                             OF

            RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION



                                          ARTICLE I

                                   NAME AND LOCATION

      The name of the corporation is RED ROCK COUNTRY CLUB HOMEOWNERS

ASSOCIATION, hereinafter referred to as the "Association."        The registered office of the

corporation shall initially be located at 4496 South Pecas Road, Las Vegas, Nevada 89121, until

relocated by Declarant or by amendment hereto, but meetings of members ("Members") and

directors ("Directors") of the Association may be held at such place within the State of Nevada,

County of Clark, as determined by the Board of Directors ("Board") in conformance herewith.

                                          ARTICLE Il

                                         DEFINITIONS

       Unless otherwise specifically provided herein, the capitalized terms in these Bylaws shall

have the same meaning as is given to such terms in the Declaration of Covenants, Conditions

and Restrictions and Reservation of Easements for RED ROCK COUNTRY CLUB ("Declaration")

recorded in the Official Records, Clark County, Nevada.

                                          ARTICLE III

                                          MEMBERS

       Section 3.1. Votine Riqhts. Subject to Sections 3.8 and 4.2, below, each Owner shall

be entitled to cast one vote for each Unit owned. Those Members appearing in the official

records of the Association, on the date forty-five (45) days prior to the scheduled date of any

meeting of the Members required or permitted to be held under this Article Ill, as record Owners


                                               -1-
of Units, shall be entitled to notice of any meeting of the Members. If there is more than one(i)

record Owner of any such Unit ("co-Owners'), any and all of such co-Owners may attend any

meeting-of the Members, but the vote attributable to the Unit so owned shall not be increased

by reason thereof. Co-Owners owning the majority interest in a Unit shall from time to time

designate in writing one (1) of their number to vote. Fractional votes shall not be allowed, and

the vote for each Unit shall be exercised, if at all, as a unit. Where no voting co-Owner is

designated, or if the designation has been revoked, the vote for the Unit shall be exercised as

the co-Owners owning the majority interests in the Unit have mutually agreed. However, no vote

shall be cast for any Unit if the co-Owners present in person or by proxy cannot agree to said

vote or other action. Unless the Board receives a written objection in advance from a co-Owner,

the votingo-Owner shall be conclusively preumed to be acting with the consent of all other co-

Owners.

        Section     .   Proxies. Every Member entitled to attend, vote at, or exercise consents with

respect to, any meeting of the Members, may do so either in person, or by a representative,

known as a proxy, duly authorized by aninstrument in writing, filed with the Board prior to the

meebng to which the proxy s applicable. No proxy shall be valid after the expiration of one ()

yearfrom the date of the proxy. Such powers of designation and revocation may be exercised

 by the legal guardian of any Member-or by his conservator, or in the case of a minor having no

 guardian, by the parent legally entitled to permanent custody, or during the administration of any

 Member's estate where the interest in the Unit is subject to administration in the estate, by such

 Member's executor or administrator.         Any form of proxy or written ballot shall afford an

 opportunity therein to specify a choice between approvatand disapproval of each matter or group

 of related matters intended, at the time-the written ballot or proxy is distributed, to be acted upon

 at the meeting for which the proxy or written ballot is solicited, and shall provide, subject to

 reasonably specified conditions; that where the person solicited specifies a choice with respect


                                                   -2-
to any such matter, the vote shall be cast in accordance with such specification. A proxy is void

if it is not dated or purports to be révocable without notice.

       Section 3.3.    Vote Aøpurtenant to Unit. The right to vote may not be severed or

separated from the ownership of the Unit to which appurtenant, except that any Member may

give a revocable proxy in the manner described above, or may assign in writing, to a lessee or

tenant actually occupying such Members Unit, his right tò voté, for the term of the lease, or to

a mortgagee of the Unit, for the term of the mortgage. Any sate, transfer or conveyance of fee

title to such Unit to a new owner shall operate automatically to transfer the appurtenant vote to

thé new owner, subject to any assignment of the right to vote to a lessee or mortgagee as

provided herein.

        Section 3.4. Meetinqs of The Association. There shall be at least one (1) meeting of the

Association each year (or more frequently, if required by applicable Nevada law), which shall be

the regularannual meeting of the Association Membership ("Annual Meeting"). The first meeting

 of the Members (whether regular or special) shall be held not later than the earlier of: (a) forty-

 five (45) days after close of escrow for the sale of a majority of Units, or (b) the date six (6)

 months after close of escrow for the sale of the first Unit in the Properties. Thereafter, meetings

 of the Association shall be held not less frequently than annually (or more frequently, if so

 required by applicable Nevada law). The business to be conducted at each Annual Meeting shall

 include the election of Directors whose terms are then expiring or otherwise to fill vacancies on

 the Board.

         Section 3.5. Notice of Meetings. Meetings of Members shall be held at such convenient

 location on or near the Properties and within Clark County as may be designated from time to

 time by the Board. Not less than ten (10) days nor more than sixty (60) days prior to any

  meeting, the Association Secretary shall cause written notice to be hand delivered or sent

  postage prepaid by United States mail to the mailing address of each Unit or to any other mailing


                                                  -3-
 address desinated in writing by any Owner. The notice of any meeting must state the time and

 placeof the meeting -and the items on the agenda, including, but not necessarily limited to, the

 general nature of any proposed amendment to the Declaration or Bylaws, any fees or

 assessments to be imposed or increased by the Association, any budgetary changes and any

 proposal to remove ari Officer or Directo. The notice must include notification of the right cf an

 Owner to have a copy of thé minutes or summary of the minutes of the meeting distributed to

 him on request if the Owner pays the Association the cost of making the distribution. The

 foregoing notwithstanding, the Association shall provide at least twenty-one (21) days advance

 written notice to each Owner, of any meeting at which an assessment for a capital improvement

 is to be considered or actionis to be taken on suchan assessment. If the Association adopts

 a policy of imposing a fine on an Owner for violation of the Deçlaration, Bylaws, or Rules and

 Regulations, th Association Secretary or other authorized Officer shall-prepare and cause to

- be hand-delivered or sent by-United States mail, postage prepaid, to the mailing address of each

  Unit, or to any other mailing address designated in writing by the Owner, a schedule of fines

  which may be Imposed for such violations. Not more than thirty (30) days after any meeting, the

  Association Secretary or-other authorized Officer shall cause the minutes or a summary of the

  minutes of the rieeting tobe made available to the Owners. A copy of the minutes or summary

  of the minutes must be provided to any requesting Owner, provided that such Owner first pays

  the Association the cost of providing such copy                               -




          Section 3.6. Special Meetinqs. Aspecial meeting of the Members may be called at any

  reasonable time and place -by written request made by: (1) a majonty of the Board, (2) the

  President of the Association, or (3) Members representing not less than ten percent (10%) (as

  such percentage is subject to change by applicable Nevada law) of the voting power of the

  Associátion. To be effective, such written-request shall be delivered to either the President, Vice

   President, or Secretary of the Association. Such Officers shall then cause notice to be given,


                                                  -4-
to Members entitled to vote, that a meeting will be held at a time and placé from time to time.set

by the Board not less than ten (10) days, nor morethan thirty (30) days, thfter receipt of the
written request. Notice of special meetings shall specify the general nature of. the business to
be undertaken and that no other business may be transacted.
        Section 3.7. Quorum. The presènce at the beginning of any meeting, in person or by
written proxy, of the Members entitled to vote at least twenty percent (20%) of the total votes of

the Association shall constitute a quorum. If any meeting cannOt be held because a quorum is

 not present, the Members present, either in person or by proxy. may, except as otherwise
 provided by law, adjourn the meeting to a time not less than five (5) nor more than thirty (30)

 days from the time the original meeting was called, at which meeting the quorum requirement

 shall be the presence, in person or by written proxy, of the Members entitle& to vote at least

 twenty percent (20%) of the total votes of the Association. If a time and place for the adjourned

 meeting is not fixed by those in attendance at the original meeting, or, if for any reason a new
 date is fixed for the adjourned meeting after adjournment, notice of the time and place of the
 adjourned meeting shall be given to Members in the manner prescribed for regular or special

 meetings, as applicable. The Members present at each meeting shall select a chairman to
 preside over the meeting and a sécretary to transcribe minutes of the meeting Unless otherwise

  expressly provided, any action authorized hereunder or under the Declaration may be taken at

  any meeting of sùch Members upon the affirmative vote of the Members having a majority of a

  quorum present at such meeting in person or by proxy. Notwithstanding the presence of a
  sufficient number of Members to constitute a quorum, certain matters, including, without
  limitation, amendment to the Declaration, require a higher percentage (e.g., 67% or 75%) of

  votes of the total voting Membership of the Association.
          Section 3.8. Suspension of Votinq Rights. The Board shall have the authority to suspend

  any Member's right to vote at any meeting of the Members, for any period during which the

                                                  -5-
payment of any assessment made pursuant to the Declaration against such Member and his Unit

remains delinquent. Such suspension for nónpaymentshall not constitute a waiver or discharge

of thé Members obligation to pay the assessments provided for in the Declaration.

              Section 3.9. Procedural Ruls forConductinq Meetings. All Association meetings shall

b         conducted pusuént toprocdural 'rúles for meetings as set forth in the--Declaration and,

subject to th foiegoing, g'enerally in accordance with Robert's Rules of Order.

    -                                                   ARTICLE IV                         =




-
     -                                             VOTING RIGHTS                       -




             - Sectión 4 1 Votinq.       Subjct to Section 4.2, below, each Owner shall beentitled to cast

one vote for each Unit owned.

               Section 4.2 Appointment of Board. Declarant shall have the right io appoint and remove

a majority of the Board, subject to the fbllowing limitations:

                   -       Not later than sixty (60) days after conveyance by Declararit to Purchasers of

    twenty-five percent (25%) of the aggregate Units That May Be Created (as said ternis -are

    defined in the Declaration) at least áne Djrctor (but not lessthan 25% of the-total-Board), must

    be elected by Owners other than Declarant.                         -                           -.




                           Not later than sixty (60) days after conveyance by Declarant to Purchasers of fifty

    percerit (50%) of the aggregafe Units Tlat'May Be-Created,notiess than one-third (1/3) of the

    total Bàard must bèlected byO(ners -éther than Declarant.

                           Th 'power résérved to- 'Declarant in this Section 4.2 toappoint or remove a

    niajority of the Bàérd shall términate on the earliest of: (i) sixty (60) days after conveyance by

     Declarant? seventy-five percent (75%) of the Units-That- May Be Created; or (ii) five (5) years
                                                                                                           (ui)
     after Declarant has ceased to offer any Units for sale in the ordinary course of business or

     five (5) years fter any right to anriexany portion -df the-Annexable Area was last exercised by

         Declararit.   -     -       -              -              -       -   -   -




                                                             -6-
                                           ARTICLE V                           -



                                    BOARD OF DIRECTORS

       Section 5.1. Number. The affairs of this Association shall be managed by a Board of at

least three (3) Directors, ail of whom (other than Directors appointed by Deciarant) must be

Members of the Association. The authoìized number of Directors may be increased to five (5)

or seven (7) by Declarant (during the period of Declarant's control of the Board as set forth in

Section 4.2(c) above), and otherwise may be changed by a duly adopted amendment to these

Bylaws. The foregoing, and any other provision herein notwithstanding, until such time as the

power reserved to Declarant in Section 4.2 above to appoint or remove a majority of the Board

has terminated, Declarant shall have the power, in its sole discretion, to amend the Bylaws from

time to time to change the number of Directors on the Board (so long as such number is not less

than the minimum number of Directors required by applicable Nevada law).

        Section 5.2. Term of Office. Declarant shall initially appoint one Director for a term of

three (3) years, one Director for a term of two (2) years, and one for a term of one (1) year, so

that replacement of the Board shall be "staggered." All subsequently appointed or elected (as

the case may be) Directors shall serve terms of two (2) years. Each Director shall in any event

serve in office until the election of his successor.

        Section 5.3. Removal and Successors. Subject to Section 4.2 above, any Director may

be removed from the Board, with or without cause, as set forth hereunder. Upon receipt of a

written petition requesting removal of any Director, signed by such Members as are required for

the calling of a special meeting of the Members under Section 3.6 hereof, the Hoard shall

 present said petition to the Members for vote. By a two-thirds vote of all Members present and

 entitled to vote at any duly noticed meeting of the Members at which a quorum is present, the

 Members may remove, with or without cause, any Director, other than a Director appointed by

 Declarant. Subject to Section 4.2 above, in the event of death, resignation or removal of a


                                                 -7-
Director, the successor Director shall be promptly elected by the Members in the manner set

forth in Article VI hereof, and shall serve for the unexpired temi of his predecessor; provided

that, until such election by the Members, the Board may temporanly fill such Board vacancy.

       Section 5 4 Compensation No Director shall receive compensation for any service he

rna' render to the Association in his capacity as Director. However, any Director may be

reimbursed for his reasonable actual expenses incurred n the performance of his duties,

provided that any such expenditure in excess of Twenty-Five Dollars ($25.00) shall require the

approval of a majority of the Board prior to expenditure.

        Section 5.5. Action Taken Without Meetinq. The Directors shall have the right to take

any action in the absence of a meeting which they could take at a meeting by obtaining the

written approval of all the Directors. Any action so approved shall have the same effect as

though taken at a meeting of the Directors.

                                           ARTICLE VI

                        NOMINATION AND ELECTION OF DIRECTORS

        Election of the Directors by the Members shall be by secret written ballot. Nominations

 for election, of Directors shall be made from the floor by Members at the Annual Meeting each

 year (or at any special meeting of the Members at which Directors are to be elected).
                                           ARTICLE VII

                         MEETINGS OF THE BOARD OF DIRECTORS

         Section 7.1. Organizational Meetirìq of            The first meeting of a newly elected or

 appointed Board shall be held within ten (10) days of election or appointment, at such place as

 shall b fixed by the Directors or at the meeting at which such Directors were elected.

         Section 7.2. Req ular Meetinas of           Regular meetings of the Board shall be held

                                                                               by applicable Nevada
  at least once every ninety (90) days (or at such other intervals as required

  law), at.such place and hour as may be fixed from time to time by Board resolution.
       Section 7.3. Special Meetiriqs of Board. Special meetings of the Board shall be held

when called by the Association President, or by any two (2) Directors1 after not less than three

(3) days' notice to aH Directors.

        Section 7.4. Quorum for Board Meetinas. A quorum is deemed present throughout any

meeting of the Board if Directors entitled to cast fifty percent (50%) of the votes on the Board

are present at the beginning of the meeting. Every act or decision done or made by a majority

of the. Directors present at a duly held meeting at which a quorum is present shall be regarded

as the act of the Board.
                                           ARTICLE VIII

                   POWERS AND DUTIES OF THE BOARD OF DIRECTORS

        Section 8.1. Powers and Duties. The Association shall flave all of the powers given to

such a corporation by law, subject only to such limitations upon the exercise of such powers as

are expressly set forth in the Declaration. The Association shall have the power to perform any

 and all lawful acts which may be necessary or proper for, or incidental to, the exercise of any

 of the express powers of the Association set forth in the Declaration. The Board may delegate

 responsibility for thé day-to-day operation of the Association to a Manager as provided in the

 Declaration. Without in any way limiting the foregoing portions of this Article VIII, the Board shall

 comply with the mandatory insurance requirements set forth in the Declaration, and, in the
 Board's discretion: may obtain insurance against such other hazards and casualties as the Board

 may deem prudent, and may also insure any other property, whether real or personal, owned
 by the Association or located within the Properties (including, but not limited to. the Units) (as

 said ternis are defined in the Declaration), against loss or damage by fire and such other
 hazards as the Board may deem desirable, with Association as owner arid beneficiary of such

 insurance.



                                                  -9-
                   I       :        .   HAR!flCLEIX:

                               OFFLCERSAND1THEIR DUTIES

       Section 9.1. Enumeration of Offices. The Association Officers shall be a President, a

Secretary, and a Treasurer, and such other Officers as the Board from time to time by resolution

màyòréàte. Ail AssöciationOfficers (dther:than:I Officers elected by Directors appointed by

Declarant during the period of DetlaPants control pursuant tp Section 4.2, above) ,must be

Members of the Association. Additionally.,: no person may 1be-electedPresident10r continue to

serve in such office unless he or she is also first a Director

       Section 9 2 Election of Officers The Association Officers shall be elected annually by

the Board    The election of Officers shall take place at the first meeting of the Board, and,

thereafter, at annual intervals following each Annual Meeüng of the Members

        Section 9.3. Term. Each Association Officer shall hold office for oneÇt) year:(or util

the election of a successor), unless the Officer sooner shall resign, be removed, or otherwise

be disqualified to serve

        Section 9 4 Soecial Appointments The Board may elect an inspector of elections and

 suchother Offiòerâ:as theraffirs. bitheAssociation may require,eachofwhorn shall hold office

 for such penod have such authority, and perfomi such duties as the Board, from time to time,

 may determine

        Section 9.5. Resianation and Removal. Any Officer may be removed from office by the

 Board, with or without cause Any Officer may resign at any time by giving wntten notice to the

 Board, the President or the Secretary Such resignation shall take effect on the date of receipt

 or at any later time specified therein, and unless otherwise specified therein, the acceptance of

 such resination shall not be necessary to make it effective
       Section 9.6. Vacancies. A vacancy in any office may be filled by appointment by the

Board. The Officer appointed to such vacancy shall serve for the remainder of the term of the

Officer replaced.

       Section 9.7. Multiple Offices. The offices of Secretary and Treasurer may be held by the

same person. No person shall simultaneously hold more than one of any of the other offices,

except for special offices created pursuant to Section 9.4 above.

       Section 9.8. Duties. Duties of the Officers are as follows:

               PRESIDENT. The President shall preside at all meetings of the Board and of the

Members; shall see that orders and resolutions of the Board are carried out; shall execute all

documents and may co-sign all checks and promissory notes; and shall cause to be prepared,

executed, certified and recorded, all properly adopted amendments to the Declaration on behalf

of the Association.

               SECRETARY. The Secretary shall record the votes and cause to be kept the

minutes of all meetings and proceedings of the Board and of the Members; shall keep the

corporate seal of the Association and affix the seal on all papers required to be sealed; shall

cause to be served notices of meetings of the Board and of the Members; shall cause to be kept

appropriate current records showing the Members and their addresses; and shall perform such

 other duties as required by the Board. The Secretary may co-sign checks in the Treasurer's

 absence.

                TREASURER. The Treasurer shall cause to be received and deposited in

 appropriate bank accounts all monies of the Association and shall cause to be disbursed such

 funds as directed by Board resolution; may co-sign checks and promissory notes of the Asso-

 ciation; shall cause to be kept proper books of account; shall cause an annual review of the

 Association books to be made by a public accountant at the completion of each fiscal year; and

 shall submit to the Board a proposed annual operating budget and statement of income and


                                              -11-
expenditures, to be presented to the Menibersatthê Annual Meeting or any relevant special

meeting of the Members.                         ;-.



       Section 9 9 Authority to Siqn Any other provision herein notwithstanding (a) each and

evéry Associ&ionHcheck,promissOry note, contract, ard otherobigation, in which the amount

or obligation is less than Five Hundréd Dollars ($500.00), shall be signed by either the

Association President or Treasurer; and (b) each and every Association check, promissory note,

contract, and other obligation, in which the Jace'amount or obligation exceeds Five Hundred

Dollars{$5000)'"shälftesignedby not:less.than tw.Q.(2) Officers: (1) the President, and(2) the

Treasurer (provided            Secretary sháll be authorized to co-sign checks in the absence of

either of the President or Treasurer).

                                           'ARTICLEX'
                                     BOOKS AND RECORDS

   .-The'ßoatd shall:cause to be kept a:complete record of a!l onts.,acts.ancomornteaffairs.

The books,réOords and:papersoftheAssociation shalLat allUmes, during,.reasonablebu5iness

hdurs,be subject to inspectionby any Member: :The Declaration, the Articles of Incorporation

and these IBylaWsshall.beavailablefor inspecUon by ary Member at the principal office of the

Associatibñ; .where:côpies: rna9:b purchased. at, reasopable cos..

         .........                          ARTlCLEX               ....


                 Y ...............ni'.'.   COMMITEES

        The Board may apØoint committees,as.deerned appropriate in carrying out its purposes

 and may, by resolution, delegate any portion. of its :ayth0rit permitted by law to ari Executive

 Committee consisting of the Associatibn.;Presideflt,. Secretary and Treasurer.




                                                 -12-
                                          ARTICLE XII

                                        ASSESSMENTS

       As more fully provided in the Declaration, the Owner of each Unit is obligated to pay to

the Association certain Assessments, which are or may be secured by a continuing lien upon the

Unit against which the assessment is máde.

                                          ARTICLE XIII

                                      CORPORATE SEAL

       The Association may have a seal in circular form having within its circumference the

words: "RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION"

                                          ARTICLE XIV

                            NOTICE.AND HEARING PROCEDURE

       Before undertaking any action for which Notice and Hearing are provided for under the

Declaration, the Board first shall cause written notice of such proposed action to be delivered

to all Owners affected thereby. The notice shall escribe the action proposed to be taken, and

shall set the date of a hearing on the matter, which date shall be not less than ten (10) days nor

more than thirty (30) days after delivery of the notice. .Each affected Owner may be heard in

person, or by counsel at the Owner's expense, at a hearing before a quorum of Directors. The

Board may adjourn and continue the hearing from time to time as it deems necessary for the

purpose of obtaining additional evidince or information. The Board shall issue its written ruling

on the matter within forty-five (45) days after the conclusion of the hearing, which ruling shall be

binding and conclusive as to all matters presented therein.

                                           ARTICLE XV

                          AMENDMENTS AND OTHER DOCUMENTS

        Section 15.1. Amendment. These Bylaws may be amended, added to, or altered, by

 both: (a) vote or written consent of not less than sixty-seven percent (67%) of the total voting


                                                -13-
power of the Association,      (b) vote oj written consent of not less than a majority of the total

voting power of the Board. Any amendment which will adversely affect the rights of any first

Mortgagee shall require the prior written approval of at least sixty-seven percent (67%) of said

first Mortgagees, pursuant to Article 13 bf the Declaration.

       Section 15.2. Other Documents: The Articles of Incorporation and the Declaration are,

by this reference, incorporated herein as if set forth in full. In the case of any conflict between

the Articles of Incorporation and these Bylaws, the Articles shall control; and in the case of any

conflict between the Declaration and the Articles or these Bylaws, the Declaration shall control.

                                          ARTICLE XVI

                                        MISCELLANEOUS                       -




        Section 16.1. Fiscal Year. The fiscal year of the Association shall begin on the first day

 of January and end on the 31st day of December of every year, except that the first fiscal year

 shall begin on the date of incorporation.

        Section 16.2. Notices. Any notice permitted or required hereunder shall be in writing and
                                                                                         deemed
 may be delivered either personally or by mail. If delivery is made by mail, it shall be
                                                                       has been deposited in
 to have been delivered two (2) business days after a copy of the same

 the United States mail, postage prepaid, addressed to any person or
                                                                     entity at the address given

                                                                                such notice, or to the
 by such person or entity to the Association for the purpose of service of

  residence of such person or entity if no address has been given to the Association. Such
                                                                   the Association.
  address may be changed from time to time by notice in writing to

         KNOW ALL MEN BY THESE PRESENTS:
                                                                         the above-named
         That we, the undersigned, being the Directors and/or Members of
                                                                                    and for the
  corporation, do hereby respectively acknowledge and adopt the foregoing Bylaws as

  Bylaws of the Association.




                                                 -14-
         IN WITNESS WHEREOF, we have hereunto set our hands this                  day of October,

1998.

                        RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION,
                        a Nevada non-profit corporation

                        DIRECTORS:



                         (A
                        Chris Nevins




                        Thomas lt .iaékson


(wmAlGßtl4\byIaws.C2)


                                                                       -   Notary Public-Stats 0f Nsvada
                                                                                   countyofciark
                                                           I Ct'
                                                             '- -; ALEXANDRA GALARDI
                                                                                MyAppointnent Expires
                                                                                    May 7,2000
                                                                                                           I


                                                           I No: ae-       -i                              I




                                                                   Pcno
                                                              t.
                                                             Cst4

                                                                                 iJ%abJ 'cn4 t\




                                             -15-
r.




     WHEN RECORDED, RETURN TO:

     WILBUR M. ROADHOUSE1 ESQ.
     Goold Patterson DeVore Ales & Roadhouse
     4496 South Pacos Road
     Las Vegas1 Nevada 89121
     (702) 436-2600
                                 (Space Above Une for Recoiter's Use Only)




                         FIRST AMENDMENT TO DECLARATION
                    OF COVENANTS, CONDITIONS AND RESTRICTIONS.
                          AND RESERVATIONOF EASEMENTS
                                      FOR                    '
                                 RED ROCK COUNTRY CLUB
                                  (A RESIDENTIAL PLANNED COMMUNITY)
                                        CLARK COUNTY, NEVADA


                                                                         lit day of February,
             THIS FIRST AMENDMENT TO bECLARATION, made as of this
      1999, by RED ROCK HOMES, LLC, a Delaware limited liability company C'Declaranfl,

                                            WITNESSETH:
            WHEREAS:
                                                                         in the office of the County
             A.     On February 9, 1999, Declarant caused to be recorded
                                                                       No.01023, a Declaration of
      Recorder of Clark County, Nevada, in Book 990209 as Instrument
                                                                Easements rDedaration") for RED
      Covenants, Conditions and Restiictions and Reservation of
      ROCK COUNTRY CLUB (the "Communftyl
                                                                                               Declaration,
             S.      Declarant is the säle owner of all of the property encumbered by the
                                                                              final paragraph of Section
      and desires to amend the Declaration (pursuant to the provisions of the
      20.5 thereof) to clarify Section 9.8(a) thereof;
                                                                                clarification, and does not
              C.     This amendment is Recorded solely to set forth said
                                                                    Mortgage, or the rights or protections
      affect, or purport to affect, the validity or priority of any             set forth in the Declaration;
      granted to any Beneficiary, insurer, or guarantor of a first Mortgage, as
                                                                         premises, and the provisions herein
              NOW, THEREFORE, in consideration of the foregoing
                                                                    follows:
      coñtained Declarant hereby amends the Declaration as
                                                                        of Lots Abuttina     Golf Court)
              1;      Existing Section 9.8 ("LandscaoinC] on Rear Yards
                                                               Section 9.8:
       is hereby deleted, and replaced with the following new
                                                                                                     1
                                                                           GclfÇ jises.. This Section 9
                          LandscaPina ori RearYadS of Lots Abuttifla ("Abutting Lor), and the rear
        Section 9.8
                                                 portion of a Golf Course
shall apply to all Lots directly abutting any                                  Subject to Article8 above:
                              Boundar?') thereof abutting the Golf Course.
yard boundary line ('Rear
                                                                         swimming pool has been
                          with regard to an Abutting Lot, on which a
                                 theOwnerthereof shall have installed, on the Rear Boundary,
        orts being installed,                                                                  with
                                           (5) feet in height, which viewfeflce shall comply
        a wrought iron view fence, five             governmental regulations; and
        all ARC requirements and applicable
                                                                          swimming pool has been
                           with regard tò an Abutting Lot, on which no
                                                             fence or wall on the Rear Boundary;
         installed, the Owner thereof need not install a or wall on the Rear Boundary, then
                                                        fence
         provided that, if the Owner does install a                         and shall be either (i) a
         such fence or wall shall comply with all three requirements
                                                      ARC                                          in
                                                than        (3) feet nor more than five (5) Teet
         wrought iron view fence not less                  three (3) feet in height; and
          height, or (ii) a masonry wall not to exceed
                                                              which is installed a view fence or
                         the Owner of an Abutting Lot on                                     have
                                            pursuanttd requirement of the ARC), shall also
         wall (or any other Abutting Lot,          immediately adjacent to    and outside of the
         installed, at such Owner's expense,                  consisting of shrubbery (but in no
         Rear Boundary a        planter area (Plantet Area")                       to approval of
         event unimproved or       improved only with sod or lawn), all as subject
         the ARC, and
                                                                        five(S) feet onto the Golf
                                    the Planter Area shall extend up to
                          (i)                                            of the Golf Course), and
          Course (subject to     approval by the ARC and by the owner
          shall not otherwise
                                  befenced or walled;
                                                                         watered and maintained
                           Qi)       the PlanterAfeaSh be adequately
                                                    and
          by the Owner at his other expense;
                                                                       wall must contain a gate,
                                      a Rear Boundary view fence or                           Rear
                           (iii)                                the Abutting Lot across the
           subject to ARC    approval, to provide access from                           and repair
                                                          only of Owner maintenance
           Boundary tà the Planter Area, for purposes
           and
                                                                            and/or approve
                           the ARC may, in its sole discretion, consider lieu of the view
                                                or similar "view" panels in
            installation by an Owner of plexiglass
                                             and
            fence or wall referenced above;
                                                                                                  be
                                                              adjacent to a Planter Area shall
                            the Owner of an Abutting Lot                               repair, and/Or
                                                      for installation, maintenance,subsection (d)
            responsible, at his or her sole expense,
                                                wall (and/or view panel, subject to as all of the
            replacement of the view fence or                                    Area,
                                                                on the Planter
                          irrigation and shrubbery locatedARC; and
             above), and                    approval by the
             foregoing shall be subject to
                                                                                       discretion, no
                                                              of the ARC, in Its sole installed on or
                             absent prior wiittefl approval
                                            modify, or change, any Improvement
              Owner may add to, delete,
              adjacent to a Planter Area.
                                                          shall remain in full force and effect. AU
               Except as amendéd herein, the Declaration                  forth in the Declaration.
        2.
                                     shall have the same meaning as set
capitalized terms not defined herein
                                                              FirstAmefldmentto Declaration as
         IN W1ThESSWHE0F Declarant has exeduted this
                                 above.
of the day andyear first written
                       DECLARANT:       .   .
                                                RED ROCK HOMES, lIC,
                                                                    .




                                                a Delaware limited liability company



                          .                             JACK, M. CONL.ON
                                                        President

 STATE OF NEVADA               )
                                                                                  of
 couoFCRK                       )
    This FirstArflefldmeflttc DeclarationWas
                                             2nowledged before me onthis..22.__Y a
                                                 President of RED gOCK HOMES,
                                                                              LW,
  777thVAJ __., 1999, by JACK M. COttON, as
  Delaware limited liability company.




      lßEßj4MEND.D1.REO




                                                                                                   EVAE
                                                                                    CLARK couNT?. NRECC
                                                                                juorH A. V        ÔUEST
                                                                                   RECORD
                                                                          W   ROADHOUSE
                                                                                  3       OMC?L2tREC0Rt
                                                                                       9031ø INSt    01
                                                                              800K:
  t                                                                                             Rrrr:
                                                                           FEE:
                                                                                          .Ø0
                                                                      Jfid.Jd e   ¡ dI..d




WHEN RECORDED, RETURN TO:

WILBUR M. ROADHOUSE, ESQ.
Goold Patterson DeVore A!es.& Roadhouse
4496 South Pecos Road
Las Vegas, Nevada 89121
(702) 436-2600                                                                      ¡K
                                                                                   (g
                          (Space Above Line for Recorders Use Only)




      DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

                        AND RESERVATION OF EASEMENTS

                                            FOR

                          RED ROCK COUNTRY CLUB


                 (a Nevada Residential Common-Interest Planned Community)
                          LAS VEGAS, CLARK COUNTY, NEVADA
                                                                                                                                                                                            Y7ULU7.0 iUc



                                            TABLE OF CONTENTS


ARTICLE I - DEFINITIONS                                                                                                                                                                                             2
     Section 1.1  Annexable Area                                                                                                                                                                                    2
     Section 1.2  Annexed Property                                                                                                                                                                                  2
            Section 1.3   ARC                                                                                                                                                                                       2
            Section 1.4
            Section 1.5
                          Articles
                          Assessments
                                                                                                                     -:                                                                                             2
                                                                                                                                                                                                                    3
            Section 1.6   Assessment, Annualj                                                                                                                                                                       3
            Section 1.7   Assessment, Capital Improvement .orRecoristruction                                                                                                       .
                                                                                                                                                                                                                    3
            Section 1.8 Assessment, SpeciaI               ..                                                                                                                                                        3
            Section 1.9   Assessment Commencement Date                                                                                                                                                              3
            Section 1.10 Association                                                                                                                                                                                3
            Section 1.11. Association Funds                                                                                                                                                                         3
            Section 1.12 Beneflciary                                                                                                                                                                                3
            Section 1.13 Board or Board of Directors                                                            ..                                                                                                  3
            Section 1.14 Budget                                                                                                                                                                                     3
                                                                                                                                  H
            Section 1.15 Bylaws                                                                                                                                                                                     3
            Section 1.16 City                                                                                                                                                                                       4
            Section 1.17 Close of Escrow                                                                                                                                                                            4
            Section 1.18 Club Hcùse and Sports Club                                                         .                                                                                                       4
                                                                                                                                                                               :

            Section 1.19 Cothmon Elements                        H                                                                                                                                                  4
            Section 1.20 Common Expenses                                                                                                      -                                                                     4
            Section 1.21 Community                                                                                                                                                                                  5
            Section 1.22: Couñtry Club        :                                                                                                                                                                     5
            Section 1.23 Country Club                                                                                                                                                                               5
                                                                                                                                                              H.
            Section 1.24 County                                                                                                                                                                                     5
            Section 1.25 Custom Lots                                                                                 H
                                                                                                                                                                                                                    5
            Section 1.26 Declarant                                                                                                                                                                                  5
                                                    .
            Section 1.27 Declaration                                                                                                                                                                                5
            Section 1.28 Deed of Trust                                                                                                                                                                              5
            Section 1.29 Director                                                                                                                                                                                   5
            Section 1.30 Dwelling                                                                                                                                                                                   6
            Section 1.31 Family
            Section 1.32FHLMC
                                            .                            ..                     .                                                                                                                   6
                                                                                                                                                                                                                    6
            Section 1.33 Fiscal Year                                               -
                                                                                                                         .                                                                                          6
                                                                                       .
            Section 1.34 FNMA                                                                           .                             .

                                                                                                                                                                                       ..                           6
            Section 1.35 GNMA                                                                                                                                                                                       6
                             Golf Courses. .
                                                                                                                                                                                                            .




             Section 1.36                                                                                                                                          .                        .
                                                                                                                                                                                                                    6
             Section 1.37 Governing Documents                                                   H:..                              .                   .                            .            .                   6
             Sectionl.38 HHP                                                                                                                      .
                                                                                                                                                                                                    .               6
             Section 1.39 Identifying Number                                           .
                                                                                                                 -                                                                                                  6
             Section 1.40 Improvement                                         ..                .           .
                                                                                                                                          .                                                                         6
             Section 1.41 Lot                                                                                                                                                                                           7
             Section-.1 .42 Maintenance Facility .7
             Section 1.43 Manager                                                                                                                                                                                       7
                                                                                           ..                                                                                                                           7
             Section '1.44 Member, Membership.
             Section. 1.45 Mortgage, Mortgagee, Mortgagor.                                                           .                                                 .   .
                                                                                                                                                                                                                        7
             Section 1.46 Neighborhood ...... ::                                                .                                                                                                       .
                                                                                                                                                                                                                .       7
             Section 1.48 Neighborhood Common Area                                                                                                        .
                                                                                                                                                               .                                                        8
             Section 1.51 Officer                                                                                                                                                                                       8
                                                                                                                                                                                                                        B
             Section 1.52 Original Property                                                                                                               .




             Section 1.53 Other Country CIüb Facilities
              Sectionl.54. Owner.      -.               ..           2                                                       ..                                                                                         s
                                                                                                    .
    -   .
                                                .            .
                                                                               ji    I I i..
                                                                            11L4.,UJ.JiLJLJ



      Section 1.55 Person                                                                      8
      Séction 1.56 Plat                                                                        8
      Section 1.57 Private Streets                                                             9
      Section 1.58 Properties                                                       -          9
      Section 1.59 Purchaser                                                                   9
      Section 1.60 Record, RecOrded,. Filed or Recordation                                     9.
      Section 1.61 Resident                                                                    g
      Sectión 1.62 Rules and Reguistiobs                                                       9
      Section 1.63 Sight Visibility Restriction Area                                           9
      Section 1.64 Sub-Association
      Section 1.65 Summerlin Community                                                         9
      Section 1.66 Summerlin Community Association
      Section 1.67 Summerlin Declaration
      Section 1.68 Supplemental Declaration                                                10
      Section 1.69 Tennis Courts                                                           lo
      Section 1.70 Unit                                                                    10
      Section 1.71 Units That May Be Created                                               10

ARTICLE 2 - OWNERS' PROPERTY RIGHTS                                                        lo
     Section 2.1 Owners' Easements of Enjoyment                                                10
     Section 2.2 Easements for Parking                                                         11
     Section 2.3 Easements for Vehicular and Pedestrian Traffic                                12
     Section 2.4 Easement Right of Dectarant Incident to Construction and/or Marketing
                    and Saies Acth iVies                                                       12
       Section 2.5  Easements for Public Service Use                                           12
       Section 2.6  Easements for Water, Sewage, Utility, and Irrigation Purposes              12
       Section 2.7  Additional Reservation of Easements                                        13
                                                                                               13
       Section 2.8 Waiver of Use
                                                                                               13
       Section 2.9 Easement Data
       Section 2.10 Owners' Right of Ingress and Egress                                        13
                                                                                               13
       Section 2.11 No Tranfer of Interest in Common Elements
                                                                                               14
       Section 2.12 Taxes
                                                                                               14
       Section 2.13 HHP Telecommunications System

                                                                                               14
ARTICLE 3 - RED ROCK CflUNTRY CLUB HOMEOWNERS ASSOCIATION
                  Organization of Association                                                  14
     Section 3.1
                                                                                               14
     Section 3.2 Duties, Powers arid Rights              .-                                    15
     Section 3.3 Membership
                                                                                                15
     Section 3.4 Transfer of Membership
                                                                                                15
     Section 3.5 Articles and Bylaws                                                            16
     Section 3.6  Board of Directors
                                                                                                17
      Section 3.7 Declarant's Control of the Board                                              17
      Section 3.8 Control of Board by Owners
                                                                                                17
 ARTICLE 4- VOTING RIGHTS                                                                       17
      Section 4.1  Owners' Voting Rights
                                                                                                18
      Section 4.2 Transfer of Voting Rights                                                     18
      Section 4.3 Meetings of the Membership                                                    18
      Section 4.4               '--9 'r'---'
                   Meeting Notic0c Anandns Minutes
                                                                                                 19
      Section 4.5 Record Date                                                                    19
       Section 4.6 Proxies                                                                       19
       Section 4.7 Quorums                                                                       20
       Section 4.8 Actions                                                                          20
       Section 4.9 Action by Meeting, and Written Approval of Absentee Owners
                                                                                                    U.UY.0 iU



               Section 4.10 Action By Written Consent. Without Meeting                                          20
               Section 4.11 Adjourned Meetihgs and Notice Theeof                                                21

         ARTICLE 5 - FUNCTIONS -OFASSOClATION                                                                   21
               Section 5.1 Powers and Duties                 .                                                  21
               Section 5.2 Rules and Regulations                                                                24
               Section 5.3 Proceedings                                                                          25
               Section 5.4 Additional Express Limitations on Powers of Association         ............... 25
               Section 5.5       Manager ......................-                                                28
               Section 5.5 Continuing Rights of Declarant                                                       29

-        ARTICLE 6 - COVENANT FOR ASSESSMENTS                                                                   30
              Section 6.1   Personal Obligation of Assessments                                                  30
              Section 6.2 Association Funds                                                                     30
              Section 6.3    Reserve Fund; Reserve Studies                                                      31
               Section 6.4   Budget                                                                             31
               Section 6.5 Limitations on Annual Assessment Increases                                           32
               Section 6.6 InitiaI Capital Contnbutrons to Association                                          32
               Section 6.7 Assessment Commencement Date                                                         32
               Section 6.8 Capital Improvement or Reconstruction Assessments                                    32
               Section 6.9 Uniform Rate of Assessment                                                           33
               Section 6.10 Exempt Property                                                                     33
               Section 6.11 Special Assessments                                                                 33
               Section 6.12 Summerlin Community Association Assessments                                         33

         ARTICLE.7 - EFFECT OF NONPAYMENT OF ASSESSMENTS:-
                 REMEDIES OF THE ASSOCIATION-                                                                   34
               Section 7.1  Nonpayment of Assessments                                                           34
                                                                                                                34
               Section 7.2. Notice of Delinquent Installment
                                                                                                                35
               Section 7.3 Notice of Default and Election to Sell
                                                                                                                35
               Section 7.4 Foreclosure Sale
                                                                                                                35
               Section 7.5 Limitation on Foreclosure
                                                                                                                35
    -          Section 7.6 Cure of Default
                                                                                                                35
               Section 7.7 Cumulative Remedies
                            Mortgagee Protection                                                                36
               Section 7.8
                                                                                                -




                                                                                                                36
-
    --         Section 7.9 Prionty öfÂssessmentLien                      -




                                                                                                                 36
          ARTICLE 8 ARCHITECTURAL AND LANDSCAPING CONTROL
                                                                                                                 36
               Section 8:1 ARC                               -   -             -   -
                                                                                                                 36
               Section 8.2 Review of Plans and Specifications
                                                                                                                 38
               Section 8.3 Meetings of the ARC
                             -

                                                                                                                 38
               Section 8.4 No Waiver of Future Approvals
                                  Compensation of Members                                                        38
                 Section 8.5 -
                                  Correction of Defects                                                          38
                 Section 8.6 -                                                                            -
                                                                                                                 39
                 Section 8.7      Scope of Review                    -




                                                                                                                 39
                 Section 8.8      Variances
                 Section 8.9
                                                                       -
                                  Additional Design Guidelines for Custom    Lots ...................40
                                                                                            -




                                                                                                      40
                 Section 8.10     Non-Liability for Approva! of Plans                  -


                                                                                                      -              40
                 Section 8.11     Declarant Exemption
                                                                                                                     40
           ARTICLE 9 - MAINTENANCE AND REPAIR OBLIGATIONS -                                                          40
                Section9.i   Maintenance Obligations of Owners
                                                                                                                     40
                Section 9 2 Maintenance Obligations of Association                                                   41
                 Section 9.3 Damage by Owners to Common Elements                                                     41
                 Section 9.4 Damage and Destnjction Affecting Dwellings and Duty to Rebuild
                                                                               uu.0 lU5

      Section 9.5    Party Walls                                                         41
      Section 9.6    Perimeter Walls                                                     42
      Section 9.7    Installed Landscaping                                               42
      Section 9.8    Landscaping on Rèar Yards of Lots Abutting Golf Courses             43
      Section 9.9    Maintenance of Security Lighting                                    43
      Section 9.10   Modification of Improvements                                        44

ARTICLE IO - tiSE RESTRICTIONS                                                           44
     Section 10.1 Single Family Residence                                                44
     Section 10.2 No Further Subdivision                                                 44
     Section 10.3 Insurance Rates                                                        45
      Section 10.4 AnimaI Restrictions                                                   45
      Section 10.5 Nuisances                                                             45
      Section 10.6 Exterior Maintenance and Repair; Owner's Obligations                  46.
      Section 10.7 Drainage                                                              46
      Section 10.8 Water Supply and Sewer Systèms                                        47
      Section 10.9 No Hazardous Activities                                                47
      Section 10.10 No Unsightly Articles                                                 47
      Section 10.11 No Temporary Structures                                               47
      Section 10.12. No Drilling                                                          47




                                                         .
      Section 10.13 Alterations                                                           48
      Section 10.14 Signs                                                 .
                                                                                     .    48
      Section 10.15 Improvements                                                          48
      Section 10.16 Antennas and Satellite Dishes                                         49
      Section 10.17 Landscaping
      Section 10.18 Prohibited Plant Types                                                50
      Section 10.19 Parking and Vehicular Restrictions                                    50
      Section 10.20 Garage Window Coverings                           .
                                                                                 .        50
      Section 10.21 Outdoor Furniture                                                     50
      Section 10.22 Sight Visibility Restriction Areas                                    51
       Section 10.23 Prohibited Direct Access                                             51.
                                                                                          51
       Section 10.24 View Restrictions
                                                                                          51
       Section 10.25 No Waiver
                                                                                          51
       Section 10.26 Declarant Exemption
                                                                                          51
 ARTICLE 11 - DAMAGE TO OR CONDEMNATION OF COMMON ELEMENTS
                                                                                          51
       Section 11.1 Damage or Destruction
       Section 11.2 Condemnation                .                                         52
       Section 11.3 Condemnation Involving a Unit                                         52

                                                                                           53
 ARTiCLE 12 - INSURANCE
                                                                                           53
       Section 12.1 Casualty Insurance                                                     53
       Section 12.2 Liability and Other Insurance                                          53
       Section 12.3 Fidelity Insurance
                                                                                           54
       Section 12.4 Other Insurance
       Section 12.5 Insurance Obligations of Owners                                           54
                                                                                              54
       Section 12.6 Waiver of Subrogation
                                                                                              55
       Section 12.7 Notice of Expiration Requirements
                                                                                              55
  ARTICLE 13 - MORTGAGEE PROTECTION CLAUSE
                                                                                              57
  ARTICLE 14 - DECLARANT'S RESERVED RIGHTS
                                                                                              57
       Section 14.1 Declarants Reserved Rightc                                                58
        Section 14.2 Exemption of Declarant
                                                                                              59
        Section 14.3 Reservation of Certain Oil and Mineral Rights
                                                                                     sg
ARTICLE 15 - ANNEXATION
                                                                                     5g
     Section 15.l Annexation of Próperty
                                                                                     60
     Section 15.2 Annexation
                                                                                     60
      Section 15.3 ApprovaI of HHP
                                                                                     60
      Section 15.4 Disclaimers Regarding Annexation
      Section 15.5 Expansion of Annexable Area                                       60
                                                                                     60
      Section 15.6 Contraction of Annexable Area
                                                                                     61
ARTICLE 16 - ADDITIONAL DISCLOSURES, DISCLAIMERS, AND RELEASES
                                                                                     61
     Section 16.1 Country Club Disclosures and Disclaimers
                                                                                     61
     Section 16.2 Golf Course & Maintenance Facility Disclosures & Disclaimers
                                                                                     63
      Section 16.3 Disclosures, Disclaimers, and Releases of Certain Other Matters
                                                                                     65
      Section 16.4 Releases
                                                                                     66
ARTICLE 17 - ADDITIONAL EASEMENTS FOR BENEFIT OF COUNTRY CLUB
                                                                                     66
     Section 17.1 Burdened Property; Benefitted Property                             66
     Section 17.2 Rights of Access and Parking
                                                                                     66
     Section 17.3 Additional Golf Course Easements
                                                                                     67
     Section 17.4 Additional Maintenance Easements
                                                                                     67
      Section 17.5 Use Restrictions                                                  67
      Section 17.6 Jurisdiction and Cooperation                                      67
      Section 17.7 Temi; Amendments
                                                                                     67
 ARTICLE 18 - ADDITIONAL PROVISIONS PERTAINING TO NEIGHBORHOODS
                                                                                     67
      Section 18.1 Neighborhood Common Area                                          66
      Section 18.3 Use of Neighborhood Common Area
       Section IBA Maintenance, Repair, and Replacement of Neighborhood Common        66
                    Area
                                                                                      69
       Section 18.5 Allocation and Budgeting of Neighborhood Expenses
                                                                                      69
 ARTICLE 19 - SUPPLEMENTAL DECLARATIONS; SUB-ASSOCIATIONS                             69
      Section 19.1 Supplemental Declarations                                          69
      Section 19.2 Sub-Associations                                                   69
      Section 19.3 Special Powers Relating to Sub-AssociationS
                                                                                      70
 ARTICLE 20 - GENERAL PROVISIONS                                                      70
      Section 20.1 Enforcement                                                        70
      Section 20.2 Severability                                                       71
         Section 20.3 Tern                                                            71
         Section 20.4 Interpretation                                                  71
         Section 20.5 Amendment                                                           72
         Section 20.6 No Public Right or Dedication                                       72
         Section 20.7 Constructive Notice and Acceptance                                  72
         Section 20.8 Notices                                                             73
         Section 20.9 Priorities and Inconsistencies                                      73
         Section 20.10 Limited Liability                                                  73
         Section 20.11 Business of Declarant                                              73
         Section 20.12 Compliance With NRS Chapter ilS.
                                -                                                         75
   EXHIBIT"A"
                                                                                          7$
   EXHIBIT "B"
                                                                                          77
   EXHIBIT"C"
                                                                                       99019.0 03


                   -   DECLARATION OF COVENANTS, CONDITIONS
                  AND RESTRICTIONS AND RESERVATION OF EASEMENTS
                                        FOR
                                   RED ROCK COUNTRY CLUB


           THIS DECLARATION ("Declaration"), made as of the _j day of February, 1999, by RED
ROCK HOMES, LLC. a Delaware rmitedliability company ("Declarant"),

                                          WITNESETH:
           WHEREAS:

             Declarant owns certain real property located, in or- near the City of Las Vegas, Clark
County, Nevada, on which Declarant intends tosubdivide, develop, constiuct, market and sell-a single
family detached residential common-interest planned community, to be known as 'RED ROCK
COUNTRY CLUB';1 and-         -



                A portion of said property, as more particularly described in Exhibit "A' attached hereto,
shall constitute the property initially covered by this Declaration ("Ong mal Property"); and

             Declarant inteiids that, upon Recordation of this Declaration, the Original Property shall
be a Nevada Common-Interest Community, as defined in NRS § 116.110323, anda Nevada PIar ned
Community, as defined in NRS § 116.110368 ("Community'); and

           D The name of the Community shall be RED ROCK COUNTRY CLUB and the name of
the Nevada nonprofit corporation organized in connection therewith shall be RED ROCK COUNTRY
 CLUB HOMEOWNERS ASSOCIATION ("Association");

           E.     Declarant further reserves the nght from time to time to add all or any portion(s) of
certain other real propérty, more partidularly déscribed in Exhibit "B" attached hereto (the "Annexable
Area") to the Community, upto a total maximum not to exceed one thousand three hundred and fifty
(1,350) aggregate Units; and                                                       -




   -        F. ThisDeclaration is intended to set forth a dynamic and flexible plan of governance of
the Community forthe overall development administration maintenance and preservation of a master
residential community in which the Owners enjoy a quality life style as "good neighbors"; and


       -           This Community. known and marketed as Réd Rock Country Club." is a
 RESIDENTIAL COMMUNITY ONLY, and IS NOT A PART of the Country Club (which-also may be
 referred to as "Red Rock Country Club"). The Country Club is a private membership country club.
 NEITHER Ownership of a Lot in the Community NOR Membership in the Red Rock Country Club
  Homeowners Association shall confer any right whatsoever with respect to membership in or use cf
  the Country Club or its facilities (including, but not limited to, the Golf Courses (including golf
  courses and their playing elements, MaintenanceFacility, and other related facilities and features,
  which may include dnving range and related features) and Other Country Club Facilities (including,
  but not necessarily limited to. Club House (with locker rooms, pro shop, dining facilities, and related
  facilities) and Sports Club (with exercise and related facilities). Tennis Courts. swimming pooi and
   spa facilities, food pavilions, and related facilities, as the same are subject to change in the sole
   discretion of the Country Club management). REFER TO DETAILED DISCLAIMERS SET FORTH
   IN ARTICLE 16, BELOW.
                                                                                            iiu1'
                                                                                       u'u ._,
                                                                                        L




              Declarant intends to develop and convey all of the Original Property, and any Annexable
Area which may be annexed from time to time thereto ("Annexed Property"), pursuant to a general
plan and subject to certain protective covenants, conditions, restrictions, rights, reservations,
easements, equitable servitudes, liens and chames; and

               Declarant has deèmed it desirable, for the efficient preservation of the value änd
amenities of the Original Property and any Annexed Property, to organize the Association, to which
shall be delegated and assigned the powers of owning, maintaining and administering the Common
Elements (as defined herein), administering and enforcing the covenants and restrictions, and
collecting and disbursing the assessments and charges hereinafter created. Declarant will cause,or
has caused, the Association to be formed for the purpose of exercising such functions; and

        NOW, THEREFORE, Declarant hereby declares that all of the Original Property (and, from the
date(s) of respective annexation, all-Annexed Property) (collectively, "Properties") shall be held, sold,
conveyed, encumbered, hypothecated, leased, used, occupied and imprOved subject to the following
protective covenants, conditions, restrictions, reservations, easements, equitable servitudes, liens and
chargeâ, all of which are for the purpose of uniformly enhancing and protecting the value,
attractiveness and desirability of the Properties (as defined in Article 1 hereof), in furtherance of a
generai plan for the protection, maintenance, subdivision, improvement and sale of the Froperties or
any portion thereof. The protective covenants, conditions, restrictions, reservations, easements, and
equitable servitudes set forth herein shall run with and burden the Properties and shalt be binding upon
all Persons having or acquiring any right, title or interest in the Properties, or any part thereof, their
heirs, successors and assigns; shall inure to the benefit of every portion of the Properties and any
interest therein; and shall inure to the benefit of and be binding upon, and may be enforced by,
Declarant, the Association, each Owner, and their respective heirs, executors and administrators, and
successive owners and assigns. All Units within this Community shall be used, improved, and devoted
exclusively to single Family residential use.


                                                ARTICLE I
                                              DEFINITIONS

         Section 1.1     "Annexable Area" shall mean the real property described in Exhibit "B," attached
 hereto and incorporated by this reference herein, all or any portion of which real property may from
 time to time be made subject to this Declaration pursuant to the provisions of Article 15 hereof. At no
 time shall any portion of the Annexable Area be deemed to be a part of the Community or a part of
  the Properties until such portion of the Annexable Area has been duly annexed hereto pursuant to
 Article 15 hereof.

        Section 1.2 "Annexed Prooerty" shall mean any and all portion(s) of the Annexable Area from
 time to time added to the Properties covered by this Declaration, by Recordation of Annexation
 Amendment(s) pursuant to Article 15 hereof.

         Section 1.3    "ARC" shall mean the Architectural Review Committee created pursuant to Article
 B hereof.

          Section 1.4 "Articles" shall mean the Articles of Incorporation of the Association as filed in
  the office of the Secretary of State of Nevada, as such Articles may be amended from time to time.




                                                     -2-
                                                                                    9JU9..0 Wi


      Section 1.5 "Assessments" shall refer collectively to Annual Assessments, Capital
Improvement or Reconstruction Assesments, and zany applicable Special Assessments (and, if
applicable with regard to a particular Neighborhood, Neighborhood Assessments).

        Section 1.6   "Assessment. Annual" shall mean the annual or supplemental charge against
each Owner and his Unit, representing a portion of the Common Expenses, which are to be paid in
equal penodic installments (monthly, quarterly, or annually, as- determined from time to time by the
Board), commencing as of theAssessment Commencement Date, by each Owner to the Association
in the manner and proportions provided herein.

       Section 1.7 "Assessment, Caoital Improvement or Reconstruction shall mean a charge
against each Owner and his Unit, representing a portion of the costs to the Association for installation,
construction or reconstruction of any Improvements on any portion of the Common Elements which
the Association may from time to time authorize, pursuantlo the provisions of this Declaration. Such
charge shall- be levied among all Owners and their Units ri the same proportion as Annual
Assessments.

      - Section1 .6 'Assessment. Special" shall mean a charge against a particular Owner and his
Unit, directly attributable to, or reimbursable by, that Owner, equal to the cost incurred by the
Association for corrective action, performed pursuant to the provisions of this Declaration, or a
reasonable fine or penalty assessed by the Association, plus-interest and other charges on such -
Special Assessments as provided for herein.

       Section 1.9 "Assessment Commencement Date" shall mean that date, pursuant to Section
6.7 hereof, duly established by the Board, on which Annual Assessments shall commence.

       Section 1.10 "Association" shall mean RED ROCK COUNTRY CLUB HOMEOWNERS
ASSOCIATION, a Nevada nonprofit corporation, its successors and assigns. The Association, and its
Board of Directors are not in any way related to, and have absolutely no jurisdiction over, the Country
Club (including, but not-limited to, the Country Club MembershipCommittee and/or Country Club
management, which are separate and apart from the Association and the Association's Board of
Directors)                                   -




        Section 1.11 "Association Funds" shall mean the accounts -created for receipts and
 disbursements of the Association, pursuant to Article 6 hereof.

       Section 1.12 "Beneficiary" shall mean a Mortgagee under a Mortgage-or a beneficiary under
 a Deed of Trust, as the case may be, and the assignees of such mortgagee or beneficiary.

     -   Section 113 "Board" or "Board of Directors" shall mean the Board of Directors of the
 Association. The Board of Directors is an "Executive Board" as defined by NRS § 116.110345.

         Section 1.14 "Budqet' shalljriean a written, itemized estimate of the expenses to be incurred
  by the Association in performing its functions under this Declaration, prepared and approved pursuant
  to the provisions of this Declaration.

         Section 1.15 "Bylaws" shall mean the Bylaws of the Association which have or will be adopted
  by the Board, as such Bylaws may be amended from time to time.




                                                     -3-
      Section 1.16 :01w". shall mean the city, if any, iñ which the Properties from time to time are
or may be located (i.e., the City of Las Vegas, Nevada).

        Section 1.17 "Close of Escrow" shall mean the date on which a deed is Recorded conveying
a Unit from Declarant to a Purchaser.

         Section 1.18 "Club House and Sports Club" shall mean the private club house (with locker
rooms, pro shop, dining facilities, and related facilities) and sports clùb (with. exercise and related
facilities), which are located on the Country Club Property and constitute a part of the Country Club
(see Section 1.22. below). The Country Club (including, but not limited to, the Club House and Sports
Club), is NOT A FART OF the Properties and NOT A PART OF the Community. Membership in the
Country Club, and use of its facilities, is subject to approval of the private Country Club Membership
Committee (which is a body separate from and not related to the Association or Board) and payment
of separate Country Club initiation fees, Country Club dues, and other charges as determined by the
 Country Club. REFER TO DETAILED DISCLAIMERS SET FORTH IN ARTICLE 16, BELOW.

        Section 1.19 "Common Elements" shall mean all real property or interests therein (including,
but not necessarily limited to, those easements over portions of Lots, designated on the Plat as
pedestrian access corridor easements, landscape easements, drainage easements, and any other
easements) owned or leased by the Association, and includes entry .monumentation, private entry
gates and guard houses for the Properties, Private Streets and public utility easements shown on the
Plat, streetlights, street signs, curbs and gutters, certain drainage and sewer easements, certain water
and power easements, Common Element landscaping, access and ingress/egress easements
(including, but not necessarily limited to, those areas respectively designated "Private Drive and
P.U.E.", and any areas designated as "Private Drainage Easement," "Water Easemènt," "Power
Easement," "Sewer Easement," "Access Easement," "Ingress/Egress Easement," andlor other similar
easements on the Flat) but otherwise, shall exclude Units.           Portions of perimeter walls of the
 Properties, pursuant to Section 9.6 below, are located on and constitute portions of Lots, and are not
 Common Elements. The Common Elements shall constitute Common Elements as to the Properties,
 as provided in NRS § 116.110318. The Country Club Property is separate and private property, and
 is NOT A PART OF the Common Elements or Properties.

         Section 1.20 "Common ExÑnses" shall mean expenditures made by, orflnancial liabilities of,
 the Association, together with any allocations to reserves, including.the actual and estimated costs of:
 maintenance, management, operation, repair, replacement and insurance of the Common Elements;
 painting over or removing graffiti on the exterior side of perimeter walls; unpaid Special Assessments
  or Capital Improvement or Reconstruction Assessments; costs of any commonly metered utilities and
  other commonly metered charges for the Properties; costs of management and administration of the
  Association including, but not limited to, compensation paid by the Association to Managers,
  accountants, attorneys and employees; costs of all utilities, gardening, trash pickup and disposal, and
  other services benefitting the Common Elements; costs of fire,. casualty and liability insurance, workers'
  compensation insurance, and any other insurance covering the Common Elements or Properties; costs
 of bonding the Board, Offirs, any Managers, or any other Person handling the funds of the
 Association; any statutorily required ombudsman's fees; taxes paid by the Association; amounts paid
 by the Association for discharge of any lien or encumbrance levied against the Common Elements or
 Properties, or portions thereof; costs of any other item or items incurred by the Association for any
 reason whatsoever in connection with the Properties, for the benefit of the Owners; prudent resrves;
  and any other expenses for which the Association is responsible pursuant to this Declaration or
  pursuant to any applicable provision of NRS Chapter 116.
       Section 1 .21"Community" shall mean a Common-Interest Community, as defined in NRS
§ 116.110323, and a Planned Community, as defined in NRS § 116.110368.

       Section 1.22 "Country Club' shall mean the private country club, known and marketed as "Red
Rock Country Club," which consists of Golf Courses (including golf courses and their playing elements,
Maintenance Facility, and other related facilities and features, which may include driving range and
related features) and Other Country Club Facilities (including, but not necessarily limited to, Club
House (with locker rooms, pro shop, dining facilities, and related facilities) and Sports Club (with
exercise and related facilities) Tennis Courts, swimming pool and spa facilities, food pavilions, and
related facilities, as the same are subject to change in the sole discretion of the Country Club's
management). Country Club ownership and membership is NOT A PART OF and is separate from
Membership in the Association, and the Country Club is NOT A PART OF the Properties and NOT A
PART OF ;the Common Elements and NOT SUBJECT TO this Declaration. Membership in the
Country Club, and use of its facilities, is subject to approval of the private Country Club Membership
Committee (which is a body separate from and not related to the Association or the Board) and
payment of separate Country Club initiation fees, Country Club dues, and other charges as determined
by the Country Club. Notwithstanding the foregoing, the owners, members, guests, invitees, agents,
employees, suppliers, and contractors of the Country Club shall have an easement of access to,
enjoyment of, and ingress and egress over, the Private Streets and entries and other Common
Elements of the Community. REFER TO DETAILED DISCLAIMERS SET FORTH IN ARTICLE 16,
BELOW, AND TO THE PROVISIONS OF ARTICLE 17, BELOW.

        Section 1.23 "Country Club Property" shall mean the real property described in Exhibit "C,"
 attached hereto and incorporated by this reference herein. The Country Club Property is NOT A PART
 OF the Properties and/or Community, and is NOT SUBJECT TO this Declaration, but is the Benefitted
                                                                                            Property be
 Property referred to in Article 17, below. At no timeshall any portion of the Country Club
 deemed to be a part of the Community or a part of the Properties. SEE        DETAILED DISCLAIMERS
 IN ARTICLE 16, BELOW.

       Section 1.24 "County" shall mean the county in which the Properties are located (i.e., Clark
 County, Nevada).

        Section 1.25 "Custom Lots"shall mean such Lots, if any, as shall be conveyed by Declarant
                                                                  Dwelling subject to requirements
 to Purchasers as to which each such Purchasers shall construct a
 of Declarant.
                                                           HOMES, LLC, a Delaware limited liability
        Section 1.26 "Declarant" shall mean RED ROCK
                                                          have assigned any rights hereunder by an
  company, its successors and any Person to which it shall excluding Purchasers as defined in NRS
  express written and Recorded assignment (but specifically
  §116.110375).
                                                                 it may be amended from time to time.
         Section 1.27 "Declaration" shall mean this instrumentas
                                                                mortgage or a deed of trust, as the case
        Section 1.28 "Deed of Trust" shall mean a Recorded
  may be. pursuant to Section 1.45, below.
                                                                             current member of the
          Séction 1.29 "Director" shall mean a duly appointed or elected and
   Board of Directors.



                                                     -5-
                                                                                    Ytût.U5'.0 ni:cj



       Section 1.30 nDweflinqu shall mean a residential Improvement located on a Unit designed and
intended for use and occupancy as a residence by a single Family.

        Section 1.31 "Family" shall mean (a) a group of natural persons related to each other by blood
or legally related to each other by marriage or adoption, or (b) a group of natural persons not all so
related, but who maintain a common household in a Dwelling, subject to all applicable federal and
state laws, and applicable health and other ordinances.

      Section 1.32 "FHLMC" shall mean the Federal Home Loan Mortgage Corporation (also known
as The Mortgage Corporation) created by Title il of the Emergency Home Finance Act of 1970, and
any successors to such corporations.

       Section 1.33 "Fiscal Year" shall mean the twelve (12) month fiscal accounting and reporting
period of the Association selected from time to time by the Board.

        Section 1.34 "FNMA" shall mean the Federal National Mortage Association, a government-
sponsored private corporation established pursuantto Title VIII of the Housing and Urban Development
Act of 1968, and any successors to such corporation.

        Section 1.35 "GNMA" shall mean the Government National Mortgage Association administered
 by the United States Department of Housing ànd Urban Development and any successors to such'
 association.

        Section 1.36 "Golf Courses" shall mean the portion of the Country Club Property (located
 adjacent to and/or nearby, but NOT A PART OF. the Properties) and Improvements, which may be
 operated as a golf course (including, without limitation, golf courses and playing elements, driving
 ranges, lakes, water hazards, and/or other related facilities or features). The Country Club (including,
 but not limited to, the Golf Courses) is NOT A PART OF the Properties, and NOT A PART OF the
 Community, and NOT A PART OF the Common Elements. REFER TO DETAILED DISCLAIMERS
  SET FORTH IN ARTICLE 16, BELOW.

        Section 1.37 "Govemina Documents" shall mean the Declaration, Articles, Bylaws, Plat, and
                                                                                       and Sub-
 the Rules and Regulations (together with, if applicable, any Supplemental Declaration
                                                                                     specific with
 Association governing documents ("Neighborhood Governing Documents") which are
                                                                             Documents shall be
 regard to a particular Neighborhood). Any inconsistency among the Governing
 governed pursuant to Section 20.9 below.

          Section 1.38 "HHP" shall mean Howard Hughes Properties Limited Partnership, a Delaware
                                                                                    declarant under any
  limited partnership, and any affiliated or related entity, which is or may be the
  Summerlin Community Declaration, andlor their respective successors or assigns.
                                                                                                 the number
         Section 1.39 "Identifyine Number pursuant to NRS § 116.110348, shall mean
  which identifies a Unit on the Plat.
                                                                                                         type
          Section 1.40 "Improvement" shall mean any structure or appurtenance thereto of every
                                                                                    including but not limited
  and kind, whether above or below the land surface, placed-in the Properties,
                                                                        swimming pools, spas and other
  to Dwellings and other buildings, walkways, sprinkler pipes,                   hardscape, Private Streets,
  recreational facilities, carports, garages, roads, driveways, parking areas,
                                                                                 block walls, retaining walls,
  streetlights, curbs, gutters, walls, perimeter walls, fences, screening walls,



                                                      -6-
stairs, decks, landscaping, antennae, hedges, windbreaks, patio covers, railings, plantings, planted
trees and shrubs, poles, signs, exterior air conditioning and water softener fixtures or equipment.

        Section 1 41     g" shall mean the real property of any residential Unit, as shown on the Plat
(specifically    including areas shown on the Plat as "C.E. Lof' or "Pnvate Drive and P.U.E?).

       Section 1.42 "Maintenance Facility" shall mean the portion of the Country Club consisting of
one or more separate large maintenance and/or warehouse-type building(s), storage area(s) for
vehicles, equipment, and chemical substances (as defined above), füel storage and above-ground fuel
island(s), and related facilities, constructed and operated by the owner(s) or operator(s) of the
Maintenance Facility, at a location on or adjacent to the Community but not contiguous to other
portions of the Country Club. The Country Club (including, but not limited to, the Maintenance Facility)
is NOT A PART OF the Properties, and NOT A PART OF the Community, and NOT A PART OF the
Common Elements. REFER TO DETAILED DISCLAIMERS SET FORTH IN ARTICLE 16, BELOW.
Notwithstanding the foregoing, the owners, members, guests, invitees,agents, employees, suppliers,
and contractors of the Country Club (including, but not limited to, the Maintenance Facility) shall have
an easement of access to, enjoyment of, and ingress and egress over, the Private Streets and entries
and other Common Elements of the Community. REFER TO THE PROVISIONS OF ARTICLE 17,
BELOW.

       Section 1.43 "Manaper" shall mean the Person, if any, whether an employee or independent
contractor, appointed by the Association, acting through the Board, and delegated the authority to
implement certain duties, powers or functions of the Association as provided in this Declaration.

        Section 1.44 "Member," "Membership."          "Memer' shall mean any Person holding a
 membership in the Association, as provided in this Declaration. "Membership" shall mean the property,
 voting and other nghts and pnvileges of Members as provided herein, together with the correlative
 duties and obligations, including liability for Assessments, contained in the Governing Documents.

       Section 1.45 "Mbrtpae' "Mortdaqee' "Mortoaâor." "Mortgage" shall mean any unreleased
 mortgage or deed of trust or other similar instrument of Record, giverì voluntarily by an Owner,
 encumbenng his Unit to secure the performance of an obligation or thé payment of a debt, which will
                                                                                          such debt. The
 be released and reconveyed upon the completion of such performance or payment of
 term "Deed of Trusf' or "Trust Deed" when used herein shall be synonymous with the term "Mortgage."
 "Mortgage" shall not include any judgment lien, mechanic's lien, tax lien, or other similarly involuntary
  lien on or encumbrance of a Unit. The term "Mortgagee" shall mean a Person to whom a Mortgage
                                                                               shall mean a Person who
  is made and shall include the beneficiary of a Deed of Trust. "Mortgagor"
                                                                                    the trustor of a Deed
  mortgages his Unit to another (i.e., the maker of a Mortgage), and shall include
                                                                                                  shall be
  of Trust. "Trustor" shall be synonymous with the term "Mortgagor," and "Beneficiary"
  synonymous with "Mortgagee."
                  1.46 "Neiphbortiood" shall mean a group of particular Units designated by Declarant
         Section                                       Neighborhood Common Area (and/or receiving
  as a specific neighborhood for purposes of shanng                           Community but outside of
  other benefits or services which are not provided to other Units within the
                                                                               Neighborhood Expenses
  the Neighborhood), subject to shanng by Units within the Neighborhood of
  through supplemental periodic Neighborhood Assessments.
                                                                           assessments, which
          Section 1.47 "Neihborhood Assessments" shall mean those periodic
                                                                           (or board of directors of a Sub-
  shall be supplemental to the Annual Assessments, levied by the Board


                                                     -7-
                                                                                              r
                                                                                      nr'-nr- il i
                                                                                      'flt           3/
                                                                                      /íd..¼,'J



Association, if pemiitted by Declarant or Board) uniformly upon the Units within a particular
Neighborhood to pay for the Neighborhood Expenses within such Neighborhood.

       Section 1.48 "Neiqhbortiood Common Area" shall mean a portion of the Comrhon Elements
which shall constitute Limited Common Elements allocated for the use and benefit of one or more
designated Neighborhood(s) (but less than the entire Community).

          Section 1.49 "Neiqhborhood Exoenses" shall mean the expenditures made by, or financial
liabilities of, the Association (or Sub-Association, if applicable), together with any allocations to
reserves, for maintenance, management; operation, repair, replacement and insurance of
Neighborhood Common Area, or for the particular benefit of Owners of Units within a particular
Neighborhood, as may be authorized pursuant to this Declaration or iii any applicable Supplemental
Declaration.

       Section 1.50 "Notice and Hearin shall mean written notice and a hearing before the Board,
at which the Owner concerned shall have an opportunity to be heard in person, or by counsel at
Owner's expense, in the manner further provided in the Bylaws.

       Section 1.51 "Officer shalt mean a duly elected or appointed and curent officer of the
Association.

       Section 1.52 "Original Property" shall mean that real property described on Exhibit "A,"
attached hereto and incorporated by this reference herein, which shall be the initial real property made
subject to this Declaration, immediately upon the Recordation of this Declaration.

        Section 1.53 "Other Country Club Facilities" shall mean the portion of the Country Club which
 consists of facilities and features related to the Golf Courses and Maintenance Facility (including, but
 not necessarily limited to, Club House and Sports Club, Tennis Courts, swimming pool and spa
 facilities, food pavilions, and related facilities, as the same are subject to change in the sole discretion
 of the Country Club management). Country Club ownership and membership is NOT A PART OF and
 is separate from Membership in the Association, and the Country Club (including, but not limited to.
 the Other Country Club Facilities) is NOT A PART OF the Properties and NOT A PART OF the
 Common Elements. REFER TO DETAILED DISCLAIMERS SET FORTh IN ARTICLE 16, BELOW,
 AND TO THE PROVISIONS OF ARTICLE 17, BELOW.

        Section 1.54 "Owner shall mean the Person or Persons, including Declarant, holding fee
 simple interest of Record to any Unit The tern "Owner shall include sellers under executory
 contracts of sale, but shall exclude Mortgagees.

        Section 1.55 "Person" shall mean a natural individual, a corporation, or any otherentity with
 the legal right to hold title to real property.

         Section 1.56 "PIar shall mean the final plat maps of RED ROCK COUNTRY CLUB, as the
 same from time to time are Recorded, including the final map of Red Rock Country Club at Surnmetlin,
 Unit lA (Recorded on August 18, 1998, in Book 85 of Plats, Page 67), Unit IB (Recorded on August
 18, 1998, in Book 85 of Plats, Page 68), Unit IC (Recorded on August 27, 1996, in Book 85 of Plats,
 Page 83), and Units 2A, 2B, 3, 4A, 45, and 5, inclusive, to be Recorded, and any other final plat maps
 of the Properties, as all of the same from time to time may be amended or suppleménted.




                                                      -8-
       Section 1.57 "Private Streets" shall mean all private streets, rights of way, street scapes, and
vehicular ingress and egress easements, in the Propertles, shown as such on the Plat.

       Section 1.58 "Properties' shall, mean all of the Ongirial Property described in Exhibit "A,"
attached hereto, together with such portions of the Annexable Area, described in Exhibit "B" hereto,
as hereafter from time to time may be annexed thereto 'pursuant to Article 15 of this Declaration.

 --       Section 1.59 "Purchaser" shall have that meaning as provjded in NRS § 116.110375.'

      Section 1.60 "Record," "Recorded," "Filed" or"Recordation" shall mean, with respect to any
document, the recordation of such document'in the official records of the County Recorder of Clark
County, Nevada.

          Section 1.61   "Rsident" shall mean an person who is physically residing in a Unit.

      Section 1.62 "Rules and Requlations" shall mean the rules and regulations adopted by the
Board pursuant to the Declaration and Bylaws, as such Rules and Regulations from time to time may
be amended.

         Section 1.63 "Sioht Visibility Restnction Area" shailmean those areas, portions of which are
or may be located on portions of Common Elements and/or Lots, identified on the Plat as "Sight'
Visibility Restriction Easements," in which the height of landscaping and other Improvements is
restricted to a maximum height as set forth on the Plat.

           Section t64 "Sub-Association" shall mean a supplemental Neighborhood homeowners
 association, organized pursuant to the authority and jurisdiction of a Supplemental Declaration (the
 creation of which shall, be subject to the prior consent of Declarant, in its sole discretion), having
 concurrent and supplemental jurisdiction (subject to this Declaration and the other Community
 Governing Documents) with the Association with respect to a particular Neighborhood.

         Section 1.65 "Summerlin Community" shall mean the community subject to any Summenlin
 Community Declaration and/or any Summerlin Community Association. The Properties are NOT A
 PART OF any Summeriin Community, but are entitled enjoy certain limited benefits related to the
 Summeriin Declaration (pursuant to the Summenlin Homebuyer's Notice prepared by HHP), and
                                                                            Assessments, as set
 Owners are required to pay certain reduced Summerlin Community Association
 forth in Section 6.12 below.

          Section 1.66 Summenlin Community Association" shall mean any and all Summeriin
  Community Associations, which are Nevada non-profit corporations, and their respective successors
  or assigns Other than certain limited obligations, as
                                                        set forth in Section 6.12 below, related to
  payment of certain reduced Summerhn Community Association Assessments to SUMMERLIN
  COMMUNITY ASSOCIATION, as set forth in Section 6.12 below. Owners hereunder are not subject
                                                                           Commùnity Declaration.
  to, or a part of, any Summenlin Community Association or any Summeriini

            Section 1.67 "Summerlin Declaration" shall mean the Master Declaration of Covenants,
      Conditions and Restrictions and Reservation of Easements for Summerlin South Community
                                                                                      Book 911231, as
      Association set forth in Instrument No. 01517, Recorded on December31, 1991. in
      amended and restated by that certain Amended and Restated      Master Declaration of Covenants,
      Conditions, Restrictions and Reservation of Easements for Summeriln South Community Association
      set forth in Instrument No. 01004, Recorded on March 28, 1997, in Book 970328.
                                                                                        (ìíQ fl;fl
                                                                                         Lj .'flL.)

         Section 1.68 "Suoplemental Declaration" shall mean an instrument Recorded by Declarant or
with the express prior written consent of Declarant, in its sole discretion, which shall be supplemental
to this Declaration, and which may create a Sub-Association and/or impose supplemental obligations,
covenants, conditions, or restrictions, or reservations of easements, with respect to a particuiar
Neighborhood or other land described in such instrument. Any purported Supplemental Declaration
Recorded without the express prior written consent of Declarant shall be null and void.

        Section 1.69 "Tennis Courts" shall mean that portion of the Country Club which consists of
private tennis courts and facilities. The Country Club (including, but not limited to, the Tennis Courts)
is NOT A PART OF the Properties, and NOT A PART OF the Community, and NOT A PART OF the
Common Elements. Membership in the Country Club, and use of its facilities, is subject to approval
of the private County Club Membership Committee (which is a body separate from and not related
to the Association or the Board) and payment of separate Country Club initiation fees, Country Club
dues, and other charges as determined by the Country Club. REFER TO DETAILED DISCLAIMERS
SET FORTH IN ARTICLE 16, BELOW, AND TO THE PROVISIONS OF ARTICLE 17, BELOW.

       Section 1.70 tnit" shall mean that portion of this Community to be separately owned by each
Owner (as shown and separately identified on the Plat), and shall include a Lot and all Improvements
thereon (which, with regard to certain Units, shall specifically include the portion of perimeter waIls
located on or within the Unit's boundaries, pursuant to Section 9.6 below). Subject to the foregoing,
and subject to Section 9.5, below, the boundaries of each Unit shall be the property lines of the Lot,
as shown on the Plat.

      Section 1.71 "Units That May Be Created" shall mean the total "not to exceed" maximum
number of aggregate Units within the Original Property and the Annexable Area (i.e., 1,350 Units).

        Any capitalized terms not defined herein shall have the meaning set forth in NRS Chapter 116.


                                            ARTiCLE 2
                                     OWNERS' PROPERTY RIGHTS

         Section 2.1  Owners' Easements of Enjoyment Each Owner shall have a nonexclusive right
 and easement of ingress and egress and of use and enjoyment in, to and over the Common Elements,
 which easement shall be appurtenant to and shall pass with title to the Owners Unit, subject to the
 following:

                      the right of the Association to reasonably limit the number of guests and tenants
 an Owner or his tenànt may authorize to use the Common Elements;

                        the right of the Association to establish uniform Rules and Regulations pertaining
 to the use of the Common Elements;

                         the right of the Association, in accordance with the Declaration, Articles and
  Bylaws, with the vote of at least two-thirds (2/3) of the voting power of the Association and a majority.
  of the voting power of the Board, to borrow money for the purpose of improving or adding to the
  Common Elements, and in aid thereof, and further subject to the Mortgagee protection provisions of
                                                                                                         real
  ArticLe 13 of this Declaration, to mortgage, pledge, deed in trust, or hypothecate any or all of its
  or personal property as security for money borrowed or debts incurred,    provided that the rights of such
  Mortgagee shall be subordinated to the rights of the Owners;


                                                     - lo -
                       subject to the provisions of Article 13 of this Declaration, and subject further to
the voting requirements set.forth in subsection 2.1(c) above, the right of the Association to dedicate,
release, alienate, transfer or grant eaèfnents, licenses, permits and rights of way in all or any portion
of the Common Elements to any public agency, authority, utility or other Person for such purposes and
subject to such conditions as may be approved by the Members;

                       -   - subject to the provisions of Article 14 hereof, the right of Declarant and its sales
agents, representatives and prospective Purchasers, to the nonexciusive use -of the Common
Elements, without cost, for access, ingress, egress, use and enjoyment, in order to show and dispose
of the Properties and/or any other development(s) until the last Close of Escrow for the marketing
and/or sale of a Unit in the Properties or such other development(s); provided, however, that such use
shall not unreasonably interfere with the rights of enjoyment of the other Owners as provided herein;

                (fi)        the nghts and reservations of Declarant as set forth in Article 14 of this
Declaratron;

                    the right of the Association (by action of the Board) to reconstruct, replace or
refinish any Improvement or portion thereof upor the Common Elements in accordance with the
ongirial design, finish or standard of construction of such Improvement, or of the generai Improvements
within the Properties, as the case may be, and if not materially in accordance with such original design,
finish or standard of construction only with the vote or written consent of the Owners holding seventy-
five percent Ç75%) of the voting power of the Association, the vote or written consent of a majority of
the voting power of the Board, and the approval of the Eligible Beneficiaries of fifty-one percent (51%)
of the first Mortgages on Units in the Properties;

                       the right of the Association, acting through the Board, to replace destroyed trees
 or other vegetation and to plant trees, shrubs and other ground cover upon any portion of the Common
 Elements;

                             the right of the Association, acting through the Board, to place and maintain upon
 the Common Elements such signs as the Board reasonably may deem appropriate for the
 identification, use and/or regulation of the Properties;

                      the right of the Association, acting through the Board, to reasonably restrict
 access to and use of portions of the Common Elements;

                          the nght of the Association, acting through the Board, to reasonably suspend
   voting rights and to impose fines as Special Assessments, and to suspend the right of an Owner or
   Resident.to use Common Elements, for nonpayment of any regular or special Assessment levied by
- the Association against the Owners Unit, or if an Owner or Resident is otherwise in breach of
   obligations imposed under the Governing Documents; and

                  (I)         the easements reserved in Sections 2.2 through 2.7, inclusive, Section 2.13. and
  Article 17. below.

          Section 2.2 Easements for Parkinq. The Association, through the Board, is hereby
  empowered to establish "parking" and/or "no parking" areas within the Common Elements, and to
                                                                                             limitations
  establish Rules and Regulations governing such matters, as well as to enforce such parking
  and rules by all means lawful for such enforcement on public streets, including the removal of any
  violating vehicle, by those so empowered, at the expense of the Owner of the violating vehicle, If any
temporary guest or recreational parking is permitted within the Common Elements, such parking shall
be permitted only within any spaces and areas clearly marked for such purpose.

         Section 2.3   Easements for Vehicular and Pedestrian Traffic. In addition to the general
easements for use of the Common Elements reserved herein, there shall be reserved to Declarant and
all future Owners, and each of their respective agents, employees, guests, invitees and successors,
nonexclusive, appurtenant easements for vehicular and pedestrian traffic over private main entry gate
areas and all Private Streets and sidewalks within the Community, subject to parking, vehicular, and/or
use provisions set forth in Section 2.2 above and Section 10.19 and Section 18.3, below.

         Section 2.4    Easemént Richtof Declarant lncidentto Construction and/orMarketine and Sales
Activities. An easement is reserved by arid granted to Declarant, its successors and assigns, and its
managers, employees, agents, contractors, saies representatives, prospective purchasers of Units,
guests, and invitees, for access, ingress, and egress over, in, upon, under, and across the Properties,
including the Common Elements (including but not limited to the right to store materials thereon and
to make such other use thereof as may be reasonably necessary or incidental to Declarant's use,
development, marketing and/or saies of the Properties, orany portion thereof); provided, however, that
no such rights or easements shall be exercised by Declarant in such a manner as to interfere
unreasonably with the occupancy, use, enjoyment, or access by any Owner, his Family, guests, or
invitees, to or of that Owners Lot, or the Common Elements. The easement created pursuant to this
Section 2.4 is subject to the time limit set forth in Section 14.1(a) below. Without limiting the generality
of the foregoing, until such time as the Close of Escrow of the last Unit in the Properties, neither the
Association nor any one or more of the Owners shall at any time, without the prior written approval of
 Declarant in its discretion, cause any entry gate within the Properties to be dosed during regular
 marketing or sales hours (including weekend sales hours) of Declarant, or shall in any other way
 impede or hinder Declarant's marketing or sales actvities.

        Section 2-5   Easements for Public Service Use. In addition to the foregoing easements over
the Common Elements, there shall be and Declarant hereby reserves and covenants for itself and all
future Owners within the Properties, easements for (a) placement of any fire hydrants on portions of
certain Lots and/or Common Elements, and other purposes normally related thereto; and(b) City,
 County, state, and federal public services, including.but not limited -to, the right of postal, law
enforcement, and fire protection services and their respective employees and agents, to enter upon
any part of the Common Elements or any Lot, for the purpose of carrying out their official duties.

         Section 2.6 Easements for Water. Sewaae. Utility, and Irileation Purposes. In addition to the
 foregoing easements, there shall be and Declarant hereby reserves and covenants for itself and all
 future Owners within the Properties, easements for public and private utility purposes, including but
 not limited to, the right of any public or private utility or mutual w?ter and/or sewage district, of ingress
 or egress over the Properties for purposes of reading and maintaining meters, and using and
 maintaining any fire hydrants located on the Properties. Declarant further reserves and covenants for
 itself and the Association, and their respective agents, employees and contractors, easements over
 the Common Elements and all Lots, for the control, installation, maintenance, repair and replacement
 of water and/or sewage lines and systems for watering or inigation of any landscaping on, and/or
 sewage disposal from or related to, Common Elements. In the event that any utility exceeds the scope
 of this or any other easement reserved in this Declaration, and causes damage to property, the Owner
  of such property shall pursue any resultant daim against the offending utility, and not against Declatant
  or the Association.




                                                      - 12-
       Section 2.7 Additional Reservation of Easements. Declarant hereby expressly reserves for
the benefit of each Owner and his Unitireciprocal, nonexclusivè easements over the adjoining Unit(s),
for the control, maintenance and r1r of the utilities serving such Owner's Unit. Declarant further
expressly reserves, for the benefit of all of the real property in the Properties, and for the benefit of
all of the Units, the Association and the Owners, reciprocal, nonexclusive easments over all Units and
the Common Elements, for the control, installation, maintenance and repair of utility services and
drainage facilities serving any portion of the Properties, for drainage of water resulting from the normal
use thereof, for thé use, maintenance, repair and replacement of Pnvate Streets and/or perimeter walls
(subject to Section 9.6 below), and for any required customer seÑico work and/ormaintenance and
repair of any Dwelling or other Improvement, wherever located n the Properties; and for compliance
with any Sight Visibility Restnction Areas. In the event that any utility exceeds the scope of any
easement pertaining to the Properties, and thereby causes bodily injury or damage to property, the
injured or damaged Owner or Resident shall pursue any and all reultant claims against the offending
utility, and not against Declarant or the Association. In the event of any minor encroachment upon the
Common Elements or Unit(s), as a result of initial construction or as a result of reconstruction, repair,
shifting, settleñient or movement of any portion of the Properties, a valid easement for minor
encroachment and for the maintenance of the same shall exist so long as the minor encroachment
exists. Declarant. and each Owner of a Unit, on which there is constructed an Improvement along or
adjacentto the property line, shall have an easement appurtenant to süch property, over such property
line, to and over the adjacent Unit and/or adjacent Common Elements, for the purposes of
accommodating any natural movement or settling of such Improvement, any encroachment of such
Improvement due to minor engineering or construction variances, and any encroachment of eaves, roof
overhangs, patio walls and architectural features comprising parts of the original construction of such
Improvement lJeclarant further reserves a nonexciusive easement, appurtenant to the Common
Elements and/or Unit (as the case may be). for the benefit of Declarant and its agents and/or
contractors, on and over the Common Elements, and any Unit(s), for any required warranty repairs,
and (b) a nonexciusive easement on and over the Common Elements, for the benefit of the
Association, and its agents, contractors,arid/or any other authorized party, for the maintenance and/or
repair of any and all landscaping and/or other improvements located on the Common Elements.

       Section 2.8 Waiver of Use. No Owner may exempt himself from personal liability for
 assessments duly levied by the Association, nor release the Unit or other property owned by said
 Owner from the liens and charges hereof, by waiver of the use and enjoyment of the Common
 Elements or any facilities thereon or by abandonment of his Unit or any other property in the
 Properties.

         Section 2.9 Easemént Data. The recording data for all easements and licenses reserved
 pursuant to the terms of this Declaration is the same as the Recording data for this Declaration. The
 recording data for any easements and licenses created by the Plat is the same as the Recording data
 for the Plat.

         Section 2.10 Owners' Riht of Inqress and Egress. Each Owner shall have an unrestricted
 right of ingress and egress to his Unit reasonably over and across the Common Elements, which right
 shall be appurtenant to ihe Unit, and shall pass with any transfer of title to the Unit.

         Section 2.11 No Transfer of Interest in Common Elements. No Owner shall be entitled to sell,
  lease, encumber, or otherwise convey (whether voluntarily or involuntarily) his interest in any of the
  Common Elements, except in conjunction with conveyance of his Unit. No transfer of Common
                                                                                           attempted or
   Elements, or any interest therein, shall deprive any Unit of its rights of access. Any
   purported transaction in violation of this provision shall be void and of no effect.

                                                     - 13-
        Section 2.12 Taxes. Each Owner shall execute such instnjrnents and take such action as may
reasonably be specified by the Association to obtain separate real estate tax assessment of each Unit.
                                                                                    become a lien on
If any taxes or assessments of any Owner may, in the opinion of the Association,
the Common Elements, or any part thereof, they may be paid by the Association as a Common
Expense or paid by the Association and levied against such Owner as a Special Assessment.

       Section 2.13 HHP Telecommunications System.                 In cooperation with one or more
telecommunication service provider(s), HHP hopes to develop an integrated broadband network, linking
homes, offices, schools, health care and public facilities to provide the necessary transport platform
for network-based services such as integrated voice, messaging, data, CAN, and interactive
                                                                                              speed data
multimedia applications. HHP's technology vision ultimately is to provide capability for high
                                                                                                     such as
connectivity, video teleconferencing, video transport, and interactive multimedia services
                                                                                                     services
movies on demand, distance learning, remote diagnostic health care, and energy information
to help address the needs of an interactive community, where home, office, retail           and commercial
needs are niet through cooperative and centrally managed network strategies. In addition, HHP
contemplates that a community server platfomi will create an "intraneV' of electronic connections
                                                                                                (a) Dedarant
between all homes, offices, schools and other facilities. In connection with the foregoing:
                                                                              service to the lot line of each
may pre-wire each Dwelling (or, if applicable, provide access to such
                                                                                             requirement) in
 Custom Lot and require that any Dwelling constructed thereon comply with this
                                                                                             service provider
 accordance with specifications furnished to Declarant by HHP or a telecommunication
                                                                                                expressed in
 selected by HNP; (b) each Owner, by acceptance of a deed to a Lot (whether or not so
                                                                                   including all components
 such deed), shall be deemed to acknowledge and agree that such system,
                                                                                         option of HNP, of a
 thereof as so installed on the Lot, shall be the sole property of lIMP, or, at the
                                                                                         expressly reserves
 telecommunication service provider selected by lIMP; (c) Declarant hereby
                                                                                          Properties; and (d)
 ownership of the portion of such system located on Lots or otherwise within the
                                                                                        undér or across each
  Declarant further expressly reserves a non-exclusive easement in gross oñ, over,
                                                                            and maintenance of such system
  lot and the other portions of the Properties for purposes of installation
                                                                                          HHP may select
  and for the benefit of HP or such other telecommunication service provider as

                                       ARTICLE 3
                     RED ROCK COUNTRY CLUB HOMEOWNERSASSOCIATION

          Section 3.1    Orqanizatiori of Association. The Association is or shall be incorporated under
                                                                 ASSOCIATION, or similar name, as a
  the name of RED ROCK COUNTRY CLUB HOMEOWNERS
                                                                    81.540, inclusive. Upon dissolution
   non-profit corporation under NRS Chapter 81, §81 .410 through
                                                              disposed of as set forth in the Governing
   of the Association, the assets of the Association shall be
   Documents and in compliance with Nevada law.
                                                                            and rights of the Association are
           Section 3.2 Duties, Powers and Rìohts. Duties, powers
                                                                together with its general and implied powers
  those set forth in this Declaration, the Articles and Bylaws,
                                                                      that a. corporation organized under the
  as a non-profit corporation, generally to do any and all things           proper, in operating for the peace.
  laws of the State of Nevada may lawfully do which are necessary or
                                                                   including any applicable powers set forth
  health, comfort, safety and general welfare of its Members,
                                                              exercise of such powers as are expressly set
   in NRS § 116.3102. subject to the limitations upon theapplicable provision of NRS Chapter 116. The
   forth in the Governing Documents, or in any expressly
                                                                 by any prospective purchaser of a Unit;any
   Association shall make available for inspection at its office
                                                             of the first Mortgage on any Unit, during regular
   Owner, and the Beneficiaries, insurers and guarantors                     of the Governing Documents, and
   business hours and upon reasonable advance notice, curent copies
    all other books, records, and financial statements of the Association.

                                                       - 14 -
     Section 3.3 Membershio. Each Owner, upon purchasing a Unit, shall automatically become
a Member and shall remain a Member until súch time as his ownership of the Unit ceases, at which
time his membership in the Assodiion shall automatically cease.              Memberships shall not be
assignable, except to the Person to which title to the Unit has been transferrd, and each Membership
shall be appurtenant to and may not be separated from the fee ownership of such Unit. Ownership
of such Unit shall be the sole qualification for Membership, and shall be subject to the Goveming
Documents.

         Section 3 4 Transfer of Membershio. The Membership, held by any 'Owner shall not be
transferred, pledged or alienated in any way, except upon the sale or encumbrance of such Owner's
Unit, and then only to the p'urchaser'or Mortga'gee of such Unit. Any attempt to make a prohibited
transfer is void, and will not be reflected upàn the bàoks arid records of the Association. An Owner
who has sold his Unit to a contract purchaser under an agreement to purchase shall be entitled to
 delegate to such contract purchaser said Owner's Membership nghts. Such delegtion shall be in
 writing and shall be delivered to the Board before such contract purchaser may'vote. However, the
 contract seller shall remain liable for all charges and assessments attnbutable to his Unit until fee title
 tothe Unit sold is transferred. If any Owner should fail or refuse to transfer his Membership to the
 purchaser of such Unit upon transfer of fee title thereto, the Board shall have the right to record the
 transfer upon the books oLthe Association. Until evidence of such transfer (which may be a copy of
 the Recorded deed of transfer) has been presented to the Board, the purchaser shall not be entitled
 to vote at meetings of the Association, unless the transferee shall have a valid proxy from the
transferor of said Unit, pursuant to Section 4.6, below). The Association may levy a reasonable
transfer fee against a new Owner and his Unit (which fee shall be added to the Annual Assessment
chargeable to such new Owner) to reimburse the Association for the administrative càst of transferring
the. Membership to the new Owner on the records of the Association. The new Owner shall, if
requested by the Board or Manager, timely attend an orientation to the Community and the Properties,
conducted by an Association Officer or Manager, and will be required to pay any costs necessary to
obtain entry gate keys and/or remote controls, if not obtained from the prior Ownerat Close of Escrow.

        Section 3.5 Articles and Bylaws. The purposes and powers of the Association and the rights
 and obligations with respect to Owners as Members of the Association set forth in this Declaration may
,and shall be amplified by provisions of the Artides and Bylaws,including any reasonable provisions
 with respect to corporate matters, but in the event that any such provisions may be, at any time,
 inconsistent with any provisions of this Declaration, the provisions of'this Declaration shall govem The
  Bylaws shall provide.

    -            (a)     the i-iumber of Directors (subject to Section 3.6 below) and the titles of the
 Officers;

                 (b)   for election by the Board of an Association president, treasurer, secretary and
 any other Officers sp'ecified by the Bylaws;

        -        (c)  the qualifications. powers and duties, ternis of office and manner of electing and
  removing Directors and Officers, and filling vacancies;

                      which, if any, respective powers the Board or Officers may delegate to other
  Persons or to a Managen

                       which of the Officers may prepare, execute, certify and ecord amendments to
  the Declaration on behalf of the Association;

                                                      -15-
                                                                                              !*w




                       procedural wies for conducting meetings of the Association; and

                       a method for amending the Bylaws.

       Section 3.6     Board of Directors.

                       The affairs of the Association shall be managed by a Board of not less than three
(3), nor more than seven (7) Directors, all of whom (other than Directors appointed by Declarant
                                                                                     with the provisions
pursuant to Section 3.7 below) must be Members of the Association. In accordance
                                                                              appoint the Board, which
of Section 3.7 below, upon the formation of the Association, Declararit shall
                                                                                increased to five (5) or
shall initially consist of three (3) Directors. The number of Directors may be
                                                                         by amendment of the Bylaws,
seven (7) by resolution of the Board, and otherwise may be changed
provided that there shall not be less than any minimum number of Directors nor more than any
maximum number of Directors from    time to time required by applicable Nevada law. The Board may
                                                                                    provided in the Governing
act in all instances on behalf of the Association, except as otherwise may be
                                                                                      the performance of their
Documents or any applicable provision of NRS Chapter 116. The Directors, in
                                                                                                 of directors of
duties, are fiduciaries, and are required to exercise the ordinary and reasonable care
                                                           Notwithstanding the foregoing, the Board may
a corporation, subject to the business-judgment rule.                              the Community, or to elect
not act on behalf of the Association to amend the Declaration, to terminate
                                                                                                 thatthe Board
Directors ordetermine theirqualifications, powers and duties orterms of office, provided
                                                                     temi. Notwithstanding any provision
may fill vàcancies in the Board for the unexpired portion of any              two-thirds vote of all persons
of this Declaration or the Bylaws to the contrary, the Owners, by a
                                                                                       is present may remove
present and entitled to vote at any meeting of the Owners at which a quorum
                                                                             Declarant. If a Director is sued
any Director with or without cause, other than a Director appointed by
                                                                    Association shall indemnify him for his
for liability for actions undertaken in his role as a Director, the
                                                                            until it is proven that the Director
 losses or claims, and shalt undertake all costs of defense, unless and
                                                                           After such proof, the Association
 acted with willful or wanton misfeasance or with gross negligence.                                 acted, costs
 is no longer liable for the costs of defense, and may recover, from the Director who so
                                                                               of crimes obcurring within the
  already expended. Directors are not personally liable to the victims                   Association, subject to
  Properties. Punitive damages may not be recovered against Declarant or the
                                                                         of a corporate Owner, a trustee or
  applicable Nevada law. An officer, employee, agent or director
  designated beneficiary of a trust that owns a     Unit, a partner of a partnership that owns a Unit, or a
                                                                             In every event where the person
  fiduciary of an estate that owns a Unit, may be an Officer or Director.
                                                                      Owner, he shall file proof of authority
  serving or offering to serve as an Officer or Director is a record
                                                                         to delegate his or her vote on the
  in the records of the Association. No Director shall be entitled
                                                                         and any such attempted delegation
   Board, as a Director, to any other Director or any other Person;
                                                                    office until the appointment (or election,
   of a Directors vote shall be void. Each Director shall serve in
   as applicable) of his successor.
                          Owners are entitled to attend any meeting of the Board (except for Executive
                                                                   the Board may establish reasonable
  Sessions) and may speak at such meeting, provided that         atsuch méeling. Owners may not attend
  procedures and limitations on the time an Owner may speak
                                                  Board specifically so permits. An "Executive Session"
  or speak at an Executive Session, unless the           portion of a Board meeting), designated as such
  is an executive session of the Board (which may be a
  by the Board in advance, for the sole purpose of:
                                                                                               relating to
                        (i)      consulting with an attomey for the Association on matters
                                                                 discussion would otherwise be govemed
          proposed or pending litigation, if the contents of the
                                                          49.115, Inclusive; or
          by the privilege set forth in NRS § 49.035 to


                                                        -16-
                              discussing Association personnel matters of a sensitive nature; or

                             discussugny violation ("Alleged Violation") of the Governing Documents
       alleged to have been committed by an Owner ("Involved Owner").

No other matter may be discussed in Executive Session. Any matter discussed in Executive Session
must be generally descnbed in the minutes of the Board meeting, provided that the Board shall
maintain detailed mtnutes of the discussion of any Alleged Violation, and, upon request, shall provide
a copy of said detailed minutes to the Involved Owner or his designated representative.

               (c)      A quórum is deemed present throughout any Board meeting if Directors entitled
to cast fifty percent (50%)of the votes on that Board are present at the beginning of the meeting.

        Section 3.7 Declarant's Control of the Board. Dunng the period of Declarant's control, as
set forth below, Declarant at any time, with or without cause, may remove or replace any Director
appointed by Declarant. Directors appointed by Declarant need not be Owners. Declarant shall have
the nght to appoint and remove the Directors, subject to the following limitations:

                      Not later than sixty (60) days after conveyance from Declarant to Purchasers of
twenty-five percent (25%) of the Units That May Be Created, at least one Director and not less than
twenty-five percent (25%) of the total Directors must be elected by Owners other than Declarant.

                         Not later than sixty (60) days after conveyance from Declarant to Purchasers of
fifty percent (50%) of the Units That May Be Created, not less than one-third of the total Directors must
be elected by Owners other than Declarant.

                        The penod of Declarant's control as set forth in this Section 3.7 shall terminate
on the earliest of: (1) sixty (60) days after conveyance from Declarant to Purchasers of seventy-five
percent (75%) of the Units That May Be Created; (2) five years after Declarant has ceased to offer any
Units for sale in the ordinary course of business; or (3) five years after any right to annex any portion
of the Annexable Area-was last exerdised pursuant to Article 15 hereof.

          Section 3.6 Control of Board by Owners. Subject to and following Declarant's control, as set
 forth in Section 3.7 above: (a) the Owners shall elect a Board of at least three (3) Directors, and (b)
 the Board rrayflll vacancies in its membership (e.g., due to death or resignation of a Director), subject
 to-the right of the Owners to elect a replacement Director, for the unexpired portion of any temi. After
 the period of Declarant's control, all of the Directors must be Owners, and each Director shall, at the
 time of his appointment or election, certify in writing that he is an Owner and has read and reasonably
  understands the Governing Documents and applicable provisions of NRS Chapter 116. The Board
  shall elect the Officers, allof whom shall be Owners. The Owners, upon a two-thirds (2/3) affirmative
  vote of all Owners present and entitled to vote at any Owners' meeting at which a quorum is present,
  may remove any Director(s) with or without cause; provided, however that any Director(s) appointed
  by Declarant may only be -removed by Declarant.


                                               ARTICLE 4
                                             VOTING RIGHTS

         Section 4.1   Owners' Votin Rihts. Subject to the following provisions of this Section 4.1,
  and to Section 4.6 below, each Member shall be entitled to cast one (1) vote for each Unit owned.

                                                    -17-
In the event that more than one Person holds fee title to a Unit ("co-owners"), all such co-owners shall
be one Member, and may attend any meeting of the Association, but only one such co-owner shall be
entitled to exercise the vote to which the Unit is entitled. Such co-owners may from time to time aU
designate in writing1 one of their number to vote. Fractional votes shall not be allowed. Where no
voting co-owner is designated, or if such designation has been revoked, the vote for such Unit shaH
be exercised as the majority of the co-cwners of the Unit mutually agree. No vate shall be cast for any
Unit where the co-owners present in.person or by proxy ownìng the majority interests in such Unit
cannot agree to said vote or other action. The nonvoting co-owners shall be jointly and severally
responsible for all of the obligations imposed upon the jointly owned Unit and shall be entitled to al!
other benefits of ownership. All agreements and determinations lawfully made by the Association in
accordance with the voting percentages established herein, or in the Bylaws, shall be deemed to be
 binding on all Owners, their successors and assigns. Notwithstanding the foregoing, the voting rights
 of an Owner shall be'automatically suspended during any time period that Annual Assessments or any
 Special Assessment levied against such Owner are delinquent.

       Section 4.2 Transfer of Votinq Riqhts. The right to vote may not be severed or separated
from any Unit, and any sale, transfer oP conveyance of fee interest in any Unit to ä new Owner shall
operate to transfer the appurtenant Membership and voting rights without the requirement of any
express reference thereto. Each Owner shall, within ten (10) days of any sale, transfer or conveyance
of a fee interest in the Owners Unit, notify the Association in writing of such sale, transfer or
conveyance, with the name and address of the transferee, the nature of the transfer and the Unit
involved, and such other information relative to the transfer and the transferee as the Board may
reasonably request, and shall deliver to the Association a copy of the Recorded deed therefor.
                                                                    the Association must be held at least
         Section 4.3 Meetines of the Membershio. Meetings of
 once each year, or as otherwise may be required by applicable law. The annual Association meeting
                                                                                 "General Meeting." The
 shall be held on a recurring anniversary basis, and shall be referred to as the
                                                                                             whose ternis
 business conducted at each such General Meeting shall include the election of Directors
 are then expiring. A special meeting of the Association Membership may       be called at any reasonable
 time and place by written request of: (a) the Association President. (b) a majority of the Directors, or
  (e) Members representing at least ten percent (10%) of the vOting power of the Association, or as
  otherwise may be required by applicable law. Notice, of special meetings shall be given by the
  Secretary of the Association in the form and manner provided in Section 4.4, below.
                                                                                               be held in
         Section 4.4 Meetine Notices: Aqendas: Minutes. Meetings of the Members shall
                                                                                     Clark County as may
  the Properties or at such other convenient location near the Properties and within
  be designated in the notice of the meeting.
                                                                                                 meeting.
                        Not less than ten (10) nor more than sixty (60) days in advance of any
                                                                               postage prepaid by United
  the Association Secretary shall cause notice to be hand delivered or sent
                                                                           address designated in writing
  States mail to the mailing address of each Unit or to any other mailing
                                                               place of the meeting and include a copy
  by any Owner. The meeting notice must state the time and               the right of an Owner to: (i) have
  of the agenda for the meeting. The notice must include notification of               him upon request, if
  a copy of the minutes ora summary of the minutes of the meeting distributed to to the Association
                                                                        and (ii) speak
   the Owner pays the Association the cost of making the distribution;
   or Board (unless the Board is meeting in Executive Session).
                         The meeting agenda must consist of:




                                                     -18-
                                                                                   YL.uJLD

                              a clear and complete statement of the topics scheduled to be considered
       dunng the meeting, including,without tmitation, any proposed amendment to any of the
       Governing Documents, an,fes or assessments to be imposed or increased by the
       Association, any budgetary changes, and/or any proposal to remove an Officer or Director; and

                             a list describing the items on which action may be taken, and clearly
       denoting that action may be taken on those items (Agenda Items"); and

                              a period devoted to comments by Owners and discussion of such
       comments; provided that, except in emergencies, no action may be taken upon a matter raised
       dunng this comment and discussion penad unless the matter is an Agenda, Item. If the matter
       is not an Agenda Item, it shall be tabled at the current meeting, and specifically included as an
       Agenda Item for discussion and consideration at the next following meeting, at which time,
       action may be taken thereon.

                        If the Assòciation adopts a policy imposing a fine on an Owner for the violation
of a provision of the Governing Documents, the Board shall prepare and cause to be hand-delivered
or sent prepaid by United States mail to the mailing address of each Unit or to any other mailing
address designated in writing by the Owner thereof, a specific schedule of fines that may be imposed
for those particular violations.

                       Not more than thirty (30) days after any meeting, the Board shall cause the
minutes or a summary of the minutes afilie meeting to be made available to the Owners. A copy of
the minutes or a summary of the minutes must be provided to any Owner who pays the Association
the cost of providing the copy.

         Section 4.5 Record Date. The Board shall have the power to fix in advance a date as a
record date for the purpose of determining Members entitled to notice of or to vote at any meeting or
to be furnished with any Budget or other information or material, or in order to make a determination
of Members for any purpose. Notwithstanding any provisions hereof to the contrary, the Members of
record on any such record date shall be deemed the Members for such notice, vote, meeting,
furnishing of information or matenal or other purpose and for any supplementary notice, or information
 or matenal with respect to the same matter and for an adjournment of the same meeting. A record
 date shall not be more than sixty (60) days nor less than ten (10) days prior to the date on which the
 particular action requinng determination of Members is proposed or expected to be taken or to occur.

        Section 4.6     Proxies. Every Member entitled to vote or execute statements or consents shall
 have the right to do so either in person or by an agent or agents authorized by a written proxy
 executed by such Member or duly authorized agent. A Member may revoke a proxy given pursuant
                                                                                          meeting of the
 to this Section 4.6 only by actual notice of revocation to the persan presiding over the
 Association. A proxy is void if it is not dated or purports to be revocable without notice. A proxy
 terminates one (1) year after its date, unless it specifies a shorter term.

         Section 4.7   Quorums The presence at any meeting of Members who hold votes equal to
 twenty percent (20%) of the total voting power of the Association, in person or by proxy, shall
                                                                                    duly called meeting
 constitute a quorum for consideration of that matter. The Members present at a
                                                                                    notwithstanding the
  at which a quorum is present may continue to do business until adjournment,
  withdrawal of enough Members to leave less than a quorum, if any action taken other than
  adjournment is approved by at least a majority of the Members required to constitute a quorum, unless
  a greater vote is required by applicable law or by this Declaration. If any meeting cannot be held

                                                    - 19-
because a quorum is not present, the Members present, either in person or by proxy, may, except as
otherwise provided by law, adjourn the meeting to a time not less than five (5) days nor more than
thirty (30) days from the time the original meeting was called, at which reconvened meeting the
quorum requirement shall be the presence, in persan or by written proxy, of the Members entitled to
vote at least twenty percent (20%) of the total votes of the Association. Notwithstanding the presence
of a sufficient number of Owners to constitute a quorum, certain matters, including, without limitation,
amendment to this Declaration, require a higher percentage (e.g., 67%) of votes of the total voting
Membership.

        Section 4.8 Actions. If a quorum is present, the affirmative vote on any mauer of the majority
of the votes represented at the meeting (or, in the case of elections in which there are more than two
(2) candidates, a plurality of the votes cast) shall be the act of the Members, unless the vote of a
greater number is required by applicable law or by this Declaration.

         Section 4.9 Action by Meetinq. and Written Aporoval of Absentee Owners. The proceedings
and transactions of any meeting of Members, either regular or special, however called and noticed and
wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if
a quorum be present either in person or by proxy and if, either before or after the meeting, each of
the Members not present in person or by proxy signs a written waiver of notice, a consent to the
holding of such meeting or an approval of the minutes thereof. Neither the business to be transacted
at, nor the purpose of any regular or special meeting of Members, need be specified in any written
waiver of notice. All such waivers, consents or approvals shall be filed with the Association records
or made a part of the minutes of the meeting. Attendance of a Member at a meeting shall constitute
a waiver of notice of such meeting, except when the Member objects at the beginning of the meeting
to the transaction of any business because the meeting is not lawfully called or convened, and except
 that attendance at a meeting is not a waiver of any right to object to the consideration of matters
 required by law to be included in the notice but not so included, if such objection is expressly made
 at the meeting.

         Section 4.10 Action By Written Consent, Without Meetino. Any action which may be taken at
 any regular or special meeting of the Members may be taken without a meeting and without prior
 notice, if authorized by a written consent setting forth the action so taken, signed by Members having
 not less than the minimum number of votes that would be necessary to authorize or take such action
 at a meeting at which all Members were present and voted, and filed with the Association Secretary;
 provided, however, that Directors may not be elected by written consent except by unanimous written
 consent of all Members. Any Member giving a written consent or such Member's proxy holder, may
 revoke any such consent by a writing received by the Association prior to the time that written consents
 of the number of Members required to authorize the proposed action have been filed with the
 Association Secretary, but may not do so thereafter. Such revocation shall be effective upon its receipt
 by the Association Secretary. Unless the consents of all Members have been solicited in writing and
 have been received, prompt notice shall be given, in the manner as for regular meetings of Members,
 to those Members who have not consented in writing, of the taking of any Association action approved
  by Members without a meeting. Such notice shall be given at least ten (10) days before the
  consummation of the action authorized by such approval with respect to the following:

                         approval of any reorganization of the Association;

                         a proposal to approve a contract or other transaction between the Association
                                                                                                    has
  and one or more Directors, or any corporation, firm or association in which one or more Directors
  a material financial interest; or

                                                    - 20 -
                                                                                                  t UL3




              (c)     approval required by law for the indemnification of any person.

       Section 4.11 Adjourned       jjriqs and Notice Theref. Any Members' meeting, regular or
special, whether or not a quorum is present, may be adjourned from time to time by a vote of a
majority of the Members present either in person or by proxy thereat, but in the absence of a quorum,
no other business may be transacted at any such meeting except as provided in Section 4.9. When
any Members' meeting, either regular or special, is adjourned for seven (7) days or less, the time and
place of the reconvened meeting shall be announced atthe meeting at which the adjournment is taken.
When any Members' meeting, either regular or special, is adjourned for more than seven (7) days,
notice of the reconvened meeting shall be given to each Member as in the case of an original meeting.
Except as aforesaid, it shall not be necessary to give any notice of an adjournment or of the business
to be transacted at a reconvened meeting, and at the reconvened meeting the Members may transact
any business that might have been transacted at the original meeting.


                                            ARTICLE 5
                                    FUNCTIONS OF ASSOCIATION

        Section 5.1     Powers and Duties. The Association shall have all of the powers of a Nevada
nonprofit corporation, subject only to such limitations, if any, upon the exercise of such powers as are
expressly set forth in the Governing Documents. The Association shall have the power to perform any
and all lawful acts which may be necessary or proper for, or incidental to, the exercise of any of the
express powers of the Association. The Association's obligations to maintain the Common Elements
shall commence on the date Annual Assessments commence on Units; until commencement of Annual
Assessments, the Common Elements shall be maintained by Declarant, at Declarant's expense.
Without in any way imiting the generality of the foregoing provisions, the Association may act through
the Board, and shall have:

                      Assessments. The power añd duty to levy asessments against the Owners of
 Units, and to enforce payment of such assessments n accordance with the provisions of Article 6
 hereof.

                         Repair and Maintenance of Common Eléments. The power and duty to paint,
 plant, maintain and repair in a neat and attractive condition, in accordance with standards adopted by
 the ARO, all Common Elements, and to pay for utilities, gardening, landscaping, and other necessary
                                                                            the Association shall have no
 services for the Common Elements. Notwithstanding the foregoing,
  responsibility to provide any of the services referred to in this subsection 5.1(b) with respect to any
                                                                                    governmental agency
  Improvement which is accepted for maintenance by any state, local or municipal
  or public entity. Such  responsibility shall be that of the applicable agency or public entity.

                         Removal of Graffiti. The power and duty to remove or paint over any graffiti from
  or on the exterior side of perimeter walls, pursuant and subject to Section 9.6, below.
                             The power and duty to pay all taxes and assessments levied upon the
  Common Elements and all taxes and assessments payable by the Association.

                           Utility Services. The power and duty to obtain, for the benefit of the Common
                                                                           and refuse collection, and the
  Elements, any commonly metered water, gas and electric services,
                                                                  cable or master television service, if any,
  power but not the duty to provide for all refuse collection and
  for all or portions of the Properties.                  -




                                                     - 21 -
                       Easements and Riqhts-of-Wav. The power but not the duty to grant and convey
to any Person, (i) easements, licenses and rights-of-way in, on, over or under the Common Elements,
and (ii) with the consent of seventy-five percent (75%) of the voting power of the Association, fee title
to parcels or strips of land which comprise a portion of the Common Elements, for the purpose of
constructing, erecting, operating or maintaining thereon, therein and thereunder (A) roads, streets,
walks, driveways, parkways, park areas and slope areas; (B) overhead or underground lines, cables,
wires, conduits, or other devices for the transmission of electricity for lighting, heating, power,
television, telephone and other similar purposes; (C) sewers, storm and water drains and pipes, water
systems, sprinkling systems, water, heating and gas lines or pipes; and, (D) any similar public or quasi-
public Improvements or facilities.

                       Manager The power but not the duty to employ or contract with a professional
Manager to perform all or any part of the duties and responsibilities of the Association, and the power
but not the duty to delegate powers to committees, Officers and employees of the Association. Any
such management agreement, or any agreement providing for services by Declarant to the
Association, shall be for a term not in excess of one (1) year, subject to cancellation by the Association
for cause at any time upon not less than thirty (30) days written notice, and without cause (and without
penalty or the payment of a termination fee) at any time upon ninety (90) days written notice.

                         Rights. of Entri and Enforcement. The power but not the duty, after Notice and
Hearing (except in the event cf emergency shith poses an imminent threat to health or substantial
damage to property, in which event, Notice and Hearing shall not be required), to enter upon any area
of a Unit, without being liable to any Owner, except for damage caused by the Association entering
or acting in bad faith, for the purpose of enforcing by peaceful means the provisions of this Declaration,
or for the purpose of maintaining or repairing any such area if for any reason whatsoever the Owner
thereof fails to maintain and repair such area as required by this Declaration. All costs of any such
maintenance and repair as described in the preceding sentence (including all amounts due for such
work, and the costs and expenses of collection) shall be assessed against such Owner as a Special
Assessment, and, if not paid timely when due, shall constitute an unpaid or delinquent assessment
pursuant to Article 7, below. The responsible Owner shall pay promptly all amounts due for such work,
and the costs and expenses of collection. Unless there exists an emergency, there shall be no entry
into a Dwelling without the prior consent of the Owner thereof. Any damage caused by an entry upon
 any Unit shall be repaired by the entering party. Subject to Section 5.3, below, the Association may
 also commence and maintain actions and suits to restrain and enjoin any breach or threatened breach
 of the Declaration and to enforce, by mandatory injunctions or otherwise, all of the provisions of the
 Declaration, and, if such action pertaining to the Declaration is brought by the Association, the
 prevailing party shall be entitled to reasonable attorneys' fees and costs to be fixed by the court.

                         Other Services. The power and duty to maintain the integrity of the Common
 Elements and te provide such other services as may be necessary or proper to carry out the
 Association's obligations and business under the terms of-this Declaration to enhance the enjoyment,
 or to facilitate the use, by the Members, of the Common Elements.
                        Employees. Agents and Consultants. The power but not the duty, if deemed
  appropriate by the Board, to hire and discharge employees and agents and to retain and pay for legal,
  accounting and other services as may be necessary or desirable in connection with the performance
  of any duties or exercise of any powers of the Association under this Declaration.

                         Accuiring Property and Construction on Common Elements. The power but not
  the duty, by action of the Board, to acquire property or interests in property for the common benefit

                                                    -22-
                                                                                    by action of
of Owners, including Improvements and persona! property The power but not the duty,
                                                                   Elements, or demolish existing
the Board, to construct new lmprovemnts or additions to the Common
Improvements (other than mainten?e or repairs to existing Improvements).

               (I)     Contracts. The power, but not the duty, to enter into contracts with Owners to
provide services or to maintain and repair Improvements within the Properties which the Association
                                                                                   but not the duty, to
is not otherwise required to maintain pursuant to this Declaration, and the power,
contract with third parties for such services. Any such contract or service agreement must, however,
                                                                                 maintenance.
provide for payment to the Association of the cost of providing sùch service or

                       Records and Accountinq. The power and the duty to keep, or cause to be kept,
                                                                               of the Association in
true and correct books and records of account at the sole cost and expense
accordance with generally accepted accounting    pnnciples. Financial statements for the Association
shall be regularly prepared and distnbuted to all Members as follows:

                              (i)     apro forma operating statement (Budget) for each fiscal year shall
                                                                         Fiscal Year and
be distributed not less than sixty (60) days before the beginning of the

                        -     (ii)    audited Financial Statements (consisting of a reasonably detailed
                                                                    Fiscal Year, and a balance sheet
 statement of revenues and expenses of the Association for each           Funds) and liabilities of the
 showing the assets (including, but not limited to, Association Reserve          hundred twenty (120)
 Association as at the end of each Fiscal year) shalt be distributed within one
 days after the close of each Fiscal Year.
                                                                                            verification of
                       Inspection of Books and Records. The duty to authorize the
                                                                   Members or Board, as the case may
 Membership, books of account and minutes of meetings of the
                                                                  and copying by any Member, or by his
 be, by making such books and records available for inspection
                                                              and expense, and at any reasonable time
 duly appointed representative, at such Member's sole cost                Member, at the office of the
 and for a purpose reasonably calculated to be in his interest as amay prescribe. The Board shall
                                                                 Board
 Association or at such other place within the Properties as the                           records by the
 establish reasonable rules with respect to: (i) notice to be given to the custodian of inspection may
                                                                 the week when such an
 Member desiring to make the inspection; (ii) hours and days of
                                                         copies of documents requested by a Member.
 be made; and, (iii) payment of the cost of reproducing
                                                      reasonable time to inspect all books, records and
 Every Director shall have the absolute right at any          owned or controlled by the Association.
  documents of the Association and the physical properties
                                                                              duty to maintain and repair
                        Maintenance of Other Areas. The power but not the
                                                         signs identifying the Properties, to the extent
  slopes, parkways, entry structures and Community
  deemed advisable by the Board.                                                             -


                                                                                    restrictions pertaining
                         Use Restrictions. The power and the duty to enforce use
   to the Properties.
                                                                                          maintained
                            Insurances The power and the duty to cause to be obtained and
   the insurance coverageS pursuant to Article 12, beloW.
                        Licenses and Permits. The power and the
                                                                       duty to obtain from applicable
                                                          reasonably necessary to carry out Association
   governmental authority any and all license and permits
   functions hereunder.


                                                     - 23 -
       Section 5.2 Rules and Regulations. The Board shall be empowered to adopt, amend, repeal,
and/or enforce reasonable and uniformly applied Rules and Regulations, which shall not discriminate
among Members, for the use and occupancy of the Properties as follows:

            (a)    General. A copy of the Rules and Regulations, as from time to time may be
adopted, amended or repealed, shall be posted in a conspicuous place in the Common Elements
andlor shall be mailed or otherwise delivered to each Member. Upon such mailing, delivery or posting,
the Rules and Regulations shall have the same force and effect as if they were set forth herein and
shall be binding on all Persons having any interest in, or making any use of any part of, the Properties,
whether or not Members; provided, however, that the Rules and Regulations shall be enforceable only
to the extent that they are consistent with the other Goveming Documents. If any Person has actual
knowledge of any of the Rules and Regulations, such Rules and Regulations shall be enforceable
against such Person, whether or not a Member, as though notice of such Rules and Regulations had
been given pursuant to this Section 5.2. The Rules and Regulations may not be used to amend any
 of the other Governing Documents.

               (b)     Limitations. The Rules and Regulations must be:

                                 reasonably related to the purpose for which adopted;

                                 sufficiently explicit in their prohibition, direction, or limitation, so as to
reasonably inform an Owner or Resident, or tenant or guest thereof, of any action or omission required
for compliance;

                        (iii).   adopted without intent to evade any obligation cf the Association;

                        (iv)     consistent with the other Governing Documents (and must not arbitrarily
 restrict conduct, or require the construction of any capital improvement by an Owner if not so required
 by the other Governing Documents); and

                        (y)   uniformly enforced under the same or similar circumstances against all
 Owners; provided that any particular rule not so uniformly enforced may no.t be enforced against any
 Owner (except as, and to the extent, if any, such enforcement may be permitted from time to time by
 applicable law).

                (c)   Enforcement. The Association shall have the right to enforce any of the Rules
 and Regulations and the obligations of any Owner under any provision of the other Governing
 Documents, by assessing a reasonable fine as a Special Assessment against such Owner or Resident,
 and/or suspending the iight of such Owner to vote at meetings of the Association and/or the right of
 the Owner or Resident to use Common Elements (other than ingress and egress, by the most
 reasonably direct mute, to the Unit), subject to the following:

                                 the person alleged to have violated the provision must have had written
                                                                                         provision for at
  notice (either actual or constructive, by inclusion in any Recorded document) of the
  least thirty (30) days before the alleged violation; and
                               such use and/cr voting suspension may not be imposed for a peñad
  longerthan thirty (30) days per violation, provided that if any such violation continues for a period of
                                                                                                     each
  ten (10) days or more after notice of such violation has been given to such Owner or Resident,


                                                       - 24 -
                                                                                                    99OU9.rji:3


         such continuing violation shall be deemed to be a new violation and shall be subject to the imposition
        -of new penalties;

                                               notwithstanding the foregoing, each Owner shall have-an unrestricted right
        of ingress and egress to his Unit by the most reasonably direct route over and across the Common
        Elements;     - -



                                               no fine imposed under this Section 5.2 may exceed Fifty Dollars ($50.00)
            (or other amount set forth in applicable provision of NRS Chapter i 16) for each failure to comply or
            may beimposéd until the Owner or Resident has been afforded the right tO be heard, in person, by
            submission of a written statement, or through a representative, at a regularly noticed hearing (unless
            the violation is of a type that substantially threatens the health and welfare of the Owners and
            Community, in which caie, the Board may take expedited action, as the Board may deem reasonable
            and-appropriate-under the circumstances, subjectto the hmitations setforth in Section 5.2(b),above);

                                        subject to Section 5.2(c)Çii) above, if any such Special Assessment
                                        (y)
            imposed by the Association on an Owner or Resident by: the Association is not paid within thirty (30)
            days after written notice of-the impositionthereof, theA such Special-Assessment shall be enforceable
            pursuant to Articles 6 and 7 below and

                                        (vi)   subject to Section 5 3 below the Association may also take judicial action
            against any Owner or Resident to enforce compliance with such Rules and Regulations and/or
            provisionof other Governing Documents, orother obligations, or to obtain damagesfor noncompliance,
            all to thefullest-exterit permitted by law.

                             (d)        Responsibility for-Violations Should any Resident violate any- of the Rules and
            Regulations or any provision- of the other Governing Documents, or should any Resident's act,
            omission or neglect cause -damage -to the Common Elements, then such violation, act, omission or
            neglect shall also be considered and treated as a violation, act, omission or neglect of the Owner of
            the Unit nwhich the Resident resides. Likewise, should -any guest of an Owner or Resident commit
            any such violation or--cause süch damage-to Common Elements; such violation, act, omission or
-


    -
            neglect shall also be considered and treated as a violation, act, omission or neglect of the-Owner or
             Resident.       -.




                    Section 5.3-    Proceedinqs. The Association, acting through the Board, shall have the power
             and the duty to reasonably defend the Association (and in connection therewith to raise
             counterclaims) in any pending or potential lawsuit, arbitration mediation or governmental proceeding
             (collectively hereinafter referred to as a Proceeding) The Association acting through the Board
             shall have the power but not the duty to reasonably institute prosecute maintain and/or intervene
                                                                                             this Declaration or the
             in a Proceeding in its own name but only on matters affecting or pertaining to
             Common Elements and as to which the Association is a proper party in interest and any exercise of
             such power shall be subject to full compliance with the following provisions:
               -
                                  (a)     Any Proceeding -commenced by the Association: (i) to enforce the payment of
                                                                                 Owner as provided for in this
                         -



              ari assessment or an assessment lien or other lien against an          Documents by or to obtain
              Declaration or (ii) to otherwise enforce compliance with the Governing
                                                                                      (iii) to protect against any
              other relief from any Owner who has violated any provision thereof or
                                                                                      safety and welfare of the Owners,
              matter which imminently and substantially threatens all of the health,
                                                                                     pursuant to a contract or purchase
              or (iv) against a supplier vendor contractor or provider of services
                                                                                       (v) for money damages wherein
        -     order with the Association and in the ordinary course of business, or

                                                                     - 25 -
the total amount in controversy for all matters arising in connection with the action is not likely to
exceed Ten Thousand Dollars ($10,000.00) in the aggregate; shall be referred to herein as an
"Operational Proceeding." The Board from time to time may cause an Operational Proceeding to be
 reasonably commenced and prosecuted, without the need for further authorization.

                (b)    Any and all pending or potential Proceedings otherthan Operational Proceedings
shall be referred to herein 35 a "Non-Operational Controversy" or "Non-Operational Controversies."
To protect the Association and the Owners from being subjected to potentially costly or prolonged Non-
Operational Controversies without full disclosure, analysis and consent; to protect the Board and
individual Directors from any charges of negligence, breach of fiduciary duty, conflict of interest or
acting in excess of their authority or in a manner not in the best interests of the Association and the
Owners; and to ensure voluntary and well-informed consent and clear and express authorization by
the Owners, strict compliance with all of the following provisions of this Section 5.3 shall be mandatory
with regard to any and all Non-Operational Controversies commenced, instituted or maintained by the
Board:

                        (i)    The Board shall first endeavor to resolve any Non-Operational
Controversy by good faith negotiations with the adverse party or parties. In the event that such good
faith negotiations fail to reasonably resolve the Non-Operational Controversy, the Board shall then
endeavor in good faith to resolve such Non-Operational Controversy by mediation, provided that the
Board shall not incur liability far or spend more than Five Thousand Dollars ($5,000.00) in connectionS
therewith (provided that, if more than said sum is reasonably required in connection with such
mediation, then the Board shall be required first to reasonably seek approval of a majority of the voting
 power of the Members for such additional amount for mediation before proceeding to arbitration or
 litigation).In the event that the adverse party or parties refuse mediation, or if such good faith
 mediation still fails to reasonably resolve the Non-Operational Controversy, the Board shall not be
 authorized to commence, institute or maintain any arbitration or litigation of such Non-Operational
 Controversy until the Board has fully complied with the following procedures:

                                       The Board shall first investigate the legal merit, feasibility and
 expense of prosecuting the Non-Operational Controversy, by obtaining the written opinion of a licensed
 Nevada attorney regularly residing inClark County, Nevada, with a .Martindale-Hubbell rating.of "by"
 or better, expressly stating that such attorney has reviewed the underlying facts and data in sufficient,
 verifiable detail to render the opinion, and expressly opining that the Association has a substantial
 likelihood of prevailing on the merits with regard to the Non-Operational Controversy, without
 substantial likelihood of incuning any material liability with respect to any counterdaim which may be
 asserted against the Association. The Board shall be authorized to spend up to anaggregate of Five
 Thousand Dollars ($5,000.00) to obtain such legal opinion, including all amounts paid tosaid attorney
 therefor, and all amounts paid to any consultants, contractors and/or experts preparing or processing
  reports and/or information in connection therewith. The Board may increase said $5,000.00 limit, with
 the express consent of seventy-five percent (75%) or more of all of the Members of the Association,
  at a special meeting called for such purpose.

                                         Said attorney opinion, letter shall also contain the aftomey's best
  good faith estimate of the aggregate maximum "not-to-exceed" amount of legal fees and costs,
  including, without limitation, court costs, costs of investigation and all further reports or studies, costs
  of court reporters and transcripts, and costs of expert witnesses and forensic specialists (all
  collectively, "Quoted Litigation Costs") which are reasonably expected to be incurred for prosecution
                                                                                Said opinion letter shall also
  to completion (including appeal) of the Non-Operational Controversy.
   include a draft of any proposed fee agreement        with such attorney. If the attomey's proposed fee


                                                      - 26 -
                                                                                          -- ___j * -



    arrangement is contingent, the Board shall nevertheless obtain the Quoted Litigation Costs with respect
    to all costs other than legal fees, an   shall also obtain a written draft of the attorney's proposed
    contingent fee agreement. (Such writtén legal opinion, including the Quoted Litigation-Costs, and also
    including any proposed fee agreement, contingent or non-contingent, are collectively referred to herein
    as the "Attorney Letter").

                                   (3)     Upon receipt and review of the Attorney Letter, if two-thirds (2/3)
    -or more of the Board' affirmatively vote to proceed with the institution or -prosecution of, and/or
     intervention in, the Non-Operational Controversy, the Board thereupon shall duly notice and call a
     special meeting of the Members. The written notice to each Membér of the Association shall include
     a copy of the Attorney Letter, including the Quoted Litigation Costs and any proposed fee agreement,
     contingent or non-contingent, together with a written report ("Special Assessment Report") prepared
     by the Board; (A) itemizing the amount necessary to be assessed to each Member ("Special Litigation
     Assessment"), on a monthly basis, to fund the Quoted Litigation Costs, and (B) specifying the probable
     duration and aggregate amount of such Special Litigation Assessment At said special meeting,
     following review of the Attorney Letter, Quoted Litigation Costs, and the Special Assessment Report,
     and full and frank discussion thereof, including balancing the desirability of instituting, prosecuting
     and/or intervening in the Non-Operational Controversy against the desirability of accepting any
      settlement proposals from the adversary party or parties, the Board shall call for a vote of the
      Memibers, whereupon. (x) if riot more than seventy-five percent (75%) of the total voting power of the
      Association votes in favor of pursuing such Non-Operational Controversy and levying the Special -
      Litigation Assessment, then the Non-Operational Controversy shall not be pursued further, but (y) if
      more than seventy-five percent (75%) of the total voting power of the Association (i., more than
      seventy-five percent (75%) of all of the Members of the Association) affirmatively vote in favor of
      pursuing such Non-Operational Controversy, and in favor of levying a Special Litigation Assessment
      on the Members-in the amounts and for the duration set forth in the Special Assessment Report, then
-    the Board shall be authorized to proceed to institute, prosecute, and/or intervene in the Non-
      Operational Controversy. In such event, the Board shall engage the attorney who gave the opinion
      and quote set forth in the Attorney Letter, which engagement shall be expressly subject to the Attorney
      Letter The terms of such engagement shall require (i) that sid attorney shall be responsible for all
                                                                                                        (120%)
      attorneys' fees and costs and expenses whatsoever in excess of onehundred twenty percent
                                                                                         Board shall distribute
      of the Quoted Litigation Costs, and (ii) that said attorney shall provide, and the
                                                                                             and current status
      to the Members, not less frequently than quarterly, a written update of the-progress
                                                                                           including any offers
      of, and the attorney's consideed prognosis for, the Non-Operational Controversy,
                                                                                         of attorneys fees and
       of settlement and/or settlement prospects, together with an itemized summary
       costs incurred to date in connection therewith.

                                     (4)   In the event of any            settlement offer from the adverse
                                                                                 attorney advises the Board
      party or parties in the Non-Operational Controversy, if the Association's                    would be in
      that acceptance of the settlement offer would be reasonable under the circumstances, or
                                                                                            the Association is
      the best inteests of the Association, or that said attorney no longer believes that
                                                                                        of rnaterial liability on
      assured of a substantial likelihood of prevailing on the merits without prospect
                                                                  to accept such settlement offer. In all other
      any counterclaim, then the Board shall have the authority            who shall have the right to accept
       cases, the Board shall submit any settlement offer to the Owners,
                                                                     Members of the Association.
       any such settlement offer upon a majority vote of all of the
                                                                                                       of funds
                      (c)      In no event shall any Aéociation Reserve Fund be used as the source
                                                                            (including, but not limited to. any
       to institute, prosecute, maintain and/or intervene in any Proceeding                   below, are to be
        Non-Operational Controversy). Association Reserve Funds, pursuant to Section 6.3,


                                                          - 27 -
used only for the specified replacements, painting and repairs of Common Elements, and fór no other
purpose whatsoever.

                        Any provision in this Declaration notwithstanding: (i) otherthan as set forth in this
Section 5.3, the Association shall have no power whatsoever to institute, prosecute, maintain, or
intervene in any Proceeding, (ii) any institution, prosecution, or maintenance of, or intervention in, a
Proceeding by-the Board without first strictly complying with, and thereafter continuing to comply with,
each of the provisions of this Section 5.3, shall be unauthorized and ultra vires as to the Association,
and shalt subject any Director who voted or acted in any manner to violate or avoid the provisions
and/or requirements of this Section 5.3 to personal liability to the Association for all costs and liabilities
incurred by reason of the unauthorized institution, prosecution, or maintenance of, or intervention in,
the Proceeding; and (iii) this Section 5.3 may not be amended or deleted at any time without the
express prior written approval of both: (1) Members representing not less than seventy-five percent
(75%) of the total voting power of Association, and (2) not less than seventy-five percent (75%) of the
Board of Directors; and any purported amendment or deletion of this Section 5.3, or any portion hereof,
without both of such express prior written approvals shall be void.

       Section 5.4 Additional Exoress Limitations on Powers of Association. The Association shall
not take any of the following actions except with the prior vote or written consent of a majority of the
voting power of the Association:

                        Incur aggregate expenditures for capital improvements to the Common Elements
 in any Fiscal Year in excess of five percent (5%) of the budgeted gross expenses of the Association
 for that Fiscal Year; or sell, during any Fiscal Year, any property of the Association having an
 aggregate fair market value greater than five percent (5%) of the budgeted gross expenses of the
 Association for that Fiscal Year.

                          Enter into a contract with a third person wherein the third person will furnish
 goods or services for the Association for a tenn longer than one (1) year, except (i) a contract with a
 public or private utility or cable television company, if the rates charged for the materials or services
 are regulated by the Nevada Public Service Commission (provided, however, that the term of the
 contract shall not exceed the shortest term for which the supplier will contract at the regulated rate),
 or (ii) prepaid casualty and/or liability insurance policies of no greater than three (3) years duration.

                        Pay compensation to any Association Director or Officer for services performed
                                                                                                Director
 in the conduct of the Association's business; provided, however, that the Board may cause a
 or Officer to be reimbursed for expenses incurred in carTying on the business of the   Association.

                                                                             to employ or contract with a
          Section 5.5 Manaqer. The Association shall have the power
  Manager, to perform ail or any part of the duties and responsibilities of the Association, subject to the
  Governing Documents, for the purpose of operating and maintaining the Properties, subject to the
  following:

                  (a)     Any agreement with a Manager shall be in writing and shall be for a tern not in
                                                                                      time upon not less
  excess of one (1) year, subject to cancellation by the Association for cause at any
  than thirty (30) days written notice, and  without cause (and without penalty or the payment of a
                                                                                                  of any
  terminatidn fee) at any time upon not more than ninety (90) days written notice. In the event
                                                                                           the Governing.
  explicit conflict between the Governing Documents and any agreement with a Manager,
  Documents shall prevail.


                                                       - 28 -
                (b)   The Manager shall possess sufficient experience, in the reasonable judgment
of the Board, in managing residential subdivision projects, similar to the Properties, in the County, and
shall be duly licensed as required friii time to time by the appropriate licensing and governmental
authorities (and must have the qualifications, including education and experience, when and as
required for the issuance of the relevant certificate by the Nevada Real Estate Division pursuant to ihe
provisions of NRS Chapter 645). Any and all employees of the Manager with responsibilities to or in
connection with the Association and/or the Community shall have such experience with regard to
similar projects. (If no Manager meeting the above-stated qualifications is available, the Board shall
retain the most highly qualified management entity available, which is duly licensed by the appropriate
licensing authonties).

               (e)    No Manager, or any director, officer, shareholder, pnncipal, partner, or employee
thereof may be a Director or Officer of the Association.

                     As a condition precedent to the employ of, or agreement with, a Manager, the
Manager (or any replacementManager) first shall be required, at its expense, to review the Governing
Documents, Plat, and any and all Association Reserve Studies and inspection reports pertaining to the
Properties.
                       By execution of its agreement with the Association, a Manager shall be
conclusively deemed to have covenanted (1) in good faith to be bound by. and to faithfully perform
all duties (including, but not limited to, full and faithful accounting for all Association funds within the
possession or control of Manager) required of the Manager underthe Governing Documents (and, in
the event of irreconcilable conflict between the Goveming Documents and the contract with the
Manager, the Governing Documents shall prevail); (2) that any penalties, fines or interest levied upon
the Association as the result of Manager's error or omission shall be paid (or reimbursed to the
Association) by the Manager and (3) at Manager's sole expense, to promptly tum over, to the Board.
 possession and control of all funds, documents, books, records and reports pertaining to the Properties
 and/or Association, and to coordinate and cooperate in good faith with the Board in connection with
 such turnover, in any event not later than ten (10) days of expiration or termination of the Association's
 agreement with Manager (provided that, without limiting its other remedies, the Association shall be
 entitled to withhold all amounts otherwise due to the Manager until such time as the Manager tumover
 in good faith has been completed).
                        Upon expiration or termination of an agreement with a Manager, a replacement
                                                                                            as possible
 Manager meeting the above-stated qualifications shall be retained by the Board as soon
                                                                           Association, to verify assets.
 thereafter and a limited review performed of the books and records of the
                         The Association shall also maintain and pay for the services of such other
                                                                        determine
  personnel, including independent contractors, as the Board shall repair of the to be necessarythe
                                                                                    Association and
                                                                                                    or
  desirable for the proper management, operation, maintenance, and
                                                                                             employed
  Properties, pursuant to the Goveming Documents, whether such personnel are furnished or personnel
                                                                       contracts. Such other
  directly by the Association or by any person with whom or which it
                                                                          to a staggered" schedule, to
  shall not all be replaced concurrently, but shall be replaced according
  maximize continuity of services to the Association.

          Section 5.6 Continuino Rights of Declarant. - Declarant shall preserve the right, without
                                                                                                  duties
  obligation, to enforce the Goveming Documents (including, without limitation, the Association's end of
                                                                                       After the
  of maintenance and repair, and Reserve Study and Reserve Fund obligations). the term of this
  Declarant's control of the Board, as set forth in Section 3.7(c) above, throughout

                                                     - 29 -
Declaration, the Board shall deliver to Declarant notices and minutes of all Board meetings and
Membership meetings, and Declarant shall have the right, without obligation, to attend such meetings,
on a non-voting basis. Declarant shall also receive notice of, and have the right, without obligation,
to attend, all inspections of the Properties or any portion(s) thereof. The Board shall also, throughout
the term of this Declaration, deliver to Declarant (without any express or implied obligation or duty on
Declarant's part to review or to do anything) all notices and correspondence to Owners, all inspection
reports, the Reserve Studies prepared in accordance with Section 6.3 below, and audited annual
reports, as required in Section 5.1(m), above. Such notices and information shall be delivered to
Declarant at its most recently designated address.

       Section 5.7    Compliance with Applicable Laws. The Association shall comply with all
applicable laws, including, but not limited to, applicable laws prohibiting discrimination against any
person in the provision of services, or facilities in connection with a Dwelling because of a handicap
of such person. Without limiting the foregoing, to the extent required by applicable law: (a) provisions
of the Governing Documents, and policies, practices, and services, shall be reasonably accommodated
to afford handicapped Residents with equal opportunity to use and enjoy their Dwellings, and (b) the
Association shall reasonably accommodate handicapped Residents, to afford such Residents equal
opportunity to use and enjoy their Dwellings, and (c) the Association shall permit handicapped
Residents to make reasonable modifications to their living areas which are necessary to enable them
to have full enjoyment of the premises.         Installation by Declarant of a device to reasonably
accommodate a handicapped Resident shall raise absolutely no inference that such devices are in any.
regard "standard" or will or may be installed with respect to any other portion of the Properties. The
provisions of the Governing Documents shall be upheld and enforceable to the maximum extent
pemiissible under applicable federal or state law or ordinance. Subject to the foregoing, itt the event
of irreconcilable conflict between applicable law and any provision of the Governing Documents, the
applicable law shall prevail, and the Association shall not adhere to or enforce any provision of the
Governing Documents which irreconcilably contravenes applicable law.


                                          ARTICLE 6
                                   COVENANT FOR ASSESSMENTS

       Section 6.1     Personal Obliqation of Assessments. Each Owner of a Unit, by acceptance of
 a deed therefor, whether or not so expressed in such deed, is deemed to covenant and agree to pay
 to the Association: (a) Annual Assessments, (b) Special Assessments, and any (c) Capital
 Improvement or Reconstnjction Assessments; such assessments to be established and collected as
 provided in this Declaration. All assessments, together with interest thereon, late charges, costs, and
 reasonable attorneys' fees for the òollection thereof, shall be a charge on the Unit and shall be a
 continuing lien upon the Unit against which such assessment is made. Each such assessment,
 together with interest thereon, late charges, costs and reasonable attorneys' fees, shall also be the
 personal obligation of the Person who was the Owner of such Unit at the Urne when the assessment
 became due. This personal obligation cannot be avoided by abandonment of a Unit or by an offer to
 waive use of the Common Elements. The personal obligation only shall not pass to the successors
  in title of any Owner unless expressly assumed by such successors.

          Section 6.2 Association Funds. The Board shall establish at least the following separate
  accounts ("Association Funds") into which shall be deposited all monies paid to the Association, and
  from which disbursements shall be made, as provided herein, in the performance of functions by the
  Association under the provisions of this Deciaration. The Association Funds shall be established as
  trust accounts at a federally or state insured banking or savings institution and shall include: (1) an

                                                   - 30 -
operating fund Ç'Operating Fund") for purrent expenses of the Association, and (2) a reserve fund
("Reserve Fund") for capital repairs at replacements as set forth in Section 6.3 below, and (3) any
other funds which the Board may etablish, to the extent necessary under the provisions of this
Declaration. To qualify for higher returns on accounts held at banking or savings institutions, the
Board may commingle any amounts deposited into any of the Association Funds, provided that the
integrity of each individual Association Fund shall be preserved on the books of the Association by
accounting for disbursements from, and deposits to, each Association Fund separately. Each of the
Association Funds shall be established as a separate trust savings or trust checking account, at any
federally or state insured banking or lending institution, with balances not to exceed institutionally
insured levels. All amounts deposited into the Operating Fund and the Reserve Fund must be used
solely for the common benefit of the Owners for purposes authorized by this Declaration, the Articles,
 or the Bylaws. The. Manager shall not be authorized to make withdrawals from the Reserve Fund.

       Section 6.3     Reserve Fund. Reserve Studies.

                        Any other provision herein notwithstanding: (i) the Association shall establish
a reserve fund ("Reserve Fund"); (ii) the Reserve Fund shall be used only for capital repairs and
replacements of major components of the Common Elements. (iii) in no event whatsoever shall the
Reserve Fund be used for regular maintenance recurring on an annual or more frequent basis, or as
the source of funds to iñstitute, prosecute, maintain and/or intervene in any Proceeding, or for any.
 other purpose whatsoever. (iv) the Reserve Fund shall be kept in a segregated account, withdrawals
from which shall only be made upon specific approval of the Board subject to the foregoing, (y) under
 no circumstances shall the Manager be authonzed to make withdrawals from the Reserve Fund, and
 (vi) any use of the Reserve Fund in violation of the foregoing provisions shall be unauthorized and fltt
vires as to the Association, and shall subject any Director who acted in any manner to violate or avoid
the provisions and/or requirements of this Section 6.3(a) to personal liability to the Association for all
costs arid liabilities incurred by reason of the unauthonzed use of the Reserve Fund.

                          The Board, in its reasonable judgment, shall periodically retain the services of
 a qualified reserve study analyst, with sufficient experience with preparing reserve studies for similar
 residential projects in the County, to prepare and provide to the Association a reserve study ("Reserve
 Study"). Each such Reserve Study shall set forth Association Reserve Fund requirements. based ori
 estimátes of the useful life and maintenance and/or replacement requirements of the Common
 Elements. The Board shall utilize the information contained in the most recent Reserve Study at the
 time the Board prepares the annual budget for the Association, and each Annual Assessment shall
  contain a specific portion thereof exclusively dedicated and funded to a segregated Association
  Reserve Fund, based upon the most recent Reserve Study.

         Section 6 4 Budget. The Board shall adopt a proposed annual Budget at least forty-five (45)
 days pnor to the first Annual Assessment period for each Fiscal Year. Within thirty (30) days after
 adoption of any proposed Budget, the Board shall provide to all Owners a summary of the Budget, and
 shall set a date for a meeting of the Owners to consider ratification of the Budget. Said meeting shall
 be held not less than fourteen (14) days, nor more than thirty (30) days after mailing of the summary.
 Unless at that meeting the proposed Budget is rejected by at least seventy-five percent (75%) of the
                                                                                                      was
 voting power of the Association, the Budget shall be deemed ratified, whether or not a quorum
 present If the proposed Budget is     duly rejected as aforesaid, the annual Budget for the immediately
  preceding Fiscal Year shall be reinstated, as if duly approved for the Fiscal Year in question, and shall
  remain in effect until such time as a subsequent proposed Budget is ratified.




                                                    -31 -
                                                                                                   -. r




        Section 6.5 Limitations on Annual Assessment Increases. The Board shall not levy, for any
Fiscal Year, an Annual Assessment which exceeds the "Maximum Authorized Annual Assessment" as
determined below, unless first approved by the vote of Members representing at least a majority of the
voting power of the Association. The "Maximum Authorized Annual Assessment" in any fiscal year
following the initial budgeted year shall not exceed one hundred ten percent (110%) of the Annual
Assessment for The prior Fiscal Year. Notwithstanding the foregoing, if, in any Fiscal Year, the Board
reasonably determines that the Common Expenses cannot be met by the Annual Assessments levied
under the then-current Budget, the Board may, upon the affirmative vote of a majority of the voting
power of the Association and a majority of the voting power of the Board, submit a Supplemental
Annual Assessment, applicable to that Fiscal Year only, for ratification as provided in Section 6.4
above.

        Section 6.6      Initial Capital Contributions to Association. At the Close of Escrow for the sale
of a Unit by Declarant, the Purchaser of such Unit shall be required to pay a capital contribution to the
Association, in an amount equal to two (2) full monthly installments of the initial or then-applicable
Annual Assessment, whichever is greater, notwithstanding Section 6.7 below. Such capital contribution
is in addition to, and is not to be considered as, advance payment of, the Annual Assessment for such
Unit, and may be applied to initial working capital needs of the Association.

         Section 6.7   Assessment Commencement Date. The Board, by majority vote, shall authorize
and levy the amount of the Annual Assessment upon each Unit, as provided herein. AnnualS
Assessments shall commence on Units on the respective Assessment Commencement Date. The
"Assessment Commencement Date" hereunder shall be: (a) with respect to Units in the Original
Property, the first day of the calendar month following the Close of Escrow to a Purchaser of the first
Unit in the Original Property; and (b) with respect to each Unit within Annexed Property, that date on
which the Annexation Amendment for such Unit is Recorded; provided that Declarant may establish
a later Assessment Commencement Date uniformly as to all Units by agreement of Declarant to pay
all Common Expenses for the Properties up through and including such later Assessment
Commencement Date. The first Annual Assessment for each Unit shall be pro-rated based on the
number of months remaining in the Fiscal Year. All installments of Annual Assessments shall be
collected in advance on a regular basis by the Board, at such frequency and on such due dates as the
Board shall determine from time to time in its solà discretion. The Association shalt, upon demand,
and for a reasonable charge, furnish a certificate binding on the Association, signed by an Officer or
Association agent, setting forth whether the assessments on a Unit have been paid. At the end of any
Fiscal Year, the Board may determine that all excess funds remaining in the operating fund, over and
above the amounts used for the operation of the Properties, may be retained by the Association for
use in reducing the following yea?s Annual Assessment or for deposit in the réserve account. Upon
dissolution of the Association incident to the abandonment or termination of the maintenance of the
Properties, any amounts remaining in any of the Association Funds shall be distñbuted proportionately
to or for the benefit of the Members, in accordance with Nevada law.

         Section 6.8 Capital Improvement or Reconstruction Assessments. The Board may levy, in
 any Fiscal Year, a Capital Improvement or Reconstruction Assessment applicable to that Fiscal Year
 only, for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction,
 repair or replacement of a capital Improvement or other such addition upon the Common Elements,
 including fixtures and personal property related thereto; provided that any proposed Capital
 Improvement or Reconstruction Assessment shall require the advance consent of a majority of the
 voting power of the Association,




                                                    - 32 -
       Section 6.9   Uniform Rate of Assessment. Annua! Assessments, and Capital Improvement
or Reconstruction Assessments shallb? assessed at an equal and uniform rate against all Owners and
their Units. Each Owner's share of uh assessments shall be a fraction, the numerator of which shall
be the number of Units owned by such Owner, and the denominator of which shall be the aggregate
number of Units n the Original Property (and, upon annexation, of Units in portions of the Annexed
Property).

      Section 6.10 Exemot Prooertv. The following property subject to this Declaration shall be
exempt from the assessments herein.   -:

                        all portions, if any, of the Properties dedicated to and accepted by, the United
States, the State of Nevada; the County, the City, or any poUtical subdivision of any of the foregoing,
or any public agency, entity or authority, for so long as such entity or political subdivision is the owner
thereof, or for so long as such dedication remains effective; and

                        the Common Elements owned by the Association in fee.

       Section 6.11 Special Assessments. The Association may, subject to the provisions of Section
9.3 and Section 11.1 (b) hereof, levy Special Assessments against specific Owners who have caused
the Association to incur special expenses due to willful or negligent acts of said Owners, their tenants,
families, guests, invitees or agents. Special Assessments also shall include, without limitation, late
payment penalties, interest charges, fines, administrative fees, attorneys' fees, amounts expended to
enforce assessment liens against Owners as provided for herein, and other charges of similar nature.
 Special Assessments, if not paid timely when due, shall constitute unpaid or delinquent assessments,
 pursuant to Article 7, below.

         Section 6.12 Summerlin Community Association Assessments Additionally, each Owner, by
 acceptance of a deed to a Lot (whether or not so expressed in such deed) shall be deemed (a) to
 acknowledge and agree that certain portions of the Summerlin Community, including, but not limited
 to the Improvements thereon or hereafter constructed thereon, while owned, controlled and maintained
                                                                             in consideration of such
 by the Summerlin Càmmunity Association, benefit the Properties, and (b)
 benefit, to covenant and agree to pay   penodic assesarnénts ("Summerlin Community Association
 Assessment") to the Summerlin Community Association, subject to the following:

                 (a)   Assessment Rate. The Summerlin Community Association will assess each Lot
                                                       (i) the amount of the Summerlin Community
 in the Propertied at a rate determined by multiplying                    shall be fixed from time to
 Association's Common Assessment against residential lots as the same
                                                                    if the Summerlin Community
 time, by (ii) twenty percent (20%). (By way of illustration only, $25.00, then the Summerlin
 Association's monthly Common     Assessment per residential lot is
                                                                          $5.00 (i.e., $25.00 x 020)
 Community Association Assessment on each Lot in the Properties shall be
                                                           Association's Common Assessment changes.
  per month until such time as the Summerlin Community                           Summerlin Community
  Summerlin Community Association Assessments shall be paid to the
                                             Association Assessments due the Summerlin Community
  Association. All Summerlin Community
  Association hereunder, together with   interest thereon, late charges, costs and reasonable attomeys'
                                                                      Declaration shall be a charge and
  fees for the collection thereof, as provided for in the Summerlin              Lot on which each such
   continuing lien in favor of the Summeilin Community Association upon the
   Summerlin Community Association Assessment is levied.

                  (b)   Summerlin Community Association Remedies. The Summerlin Community
                                                                                       Summerlin
   Association shall have the same rights and remedies against Owners hereunder as the

                                                      - 33 -
Community Association has against the "Owners" (as said temi is defined in the Summerlin
Declaration) with respect to the enforcement of the assessments described above.

                    No Summerlin Community Association Votine or Other Riqhts. Notwithstanding
payment by an Owner hereunder of Summerlin Community Association Assessments to the Summerlin
Community Association, in accordance with the provisions of this Section 6.12, nothing herein shall
be deemed or construed to grant to any Owner in the Properties any membership, voting, or other
rights in the Summerlin Community Association or its property.

                     Incorporation of Summerlin Declaration Provisions. Such provisions of the
Summerlin Declaration referred to in, or necessary to effect the intent of, this Section 612, are hereby
incorporated herein by this reference

                       Amendment of this Section 6.12.          Notwithstanding any provision of this
Declaration to the contrary, the ternis of this Section 6.12 may not be amended, altered, suspended,
or superseded without the express written consent of the Summerlin Community Association, which
consent shall be acknowledged in a Recorded document.


                                         ARTICLE 7
                           EFFECT OF NONPAYMENT OF ASSESSMENTS:
                                REMEDIES OF THE ASSOCIATION

         Sectiòn 7.1     Nonpayment of Assessments. Any installment of an Annual Assessment, Special
 Assessment, or Capital Improvement or Reconstruction Assessment, shall be delinquent if not paid
 within thirty (30) days of the due date as estabflshed by the Board. Such delinquent installment shall
 bear interest from the due date until paid, at the rate of two (2) percentage points per annum above
 the prime rate charged from time to time by Bank of America N.T. & S.A. (or, if such rate is no longer
                                                                                                    rate
 published, then a reasonable replacement rate), but in any event not greater than the maximum
 permitted by applicable Nevada law, as well as a reasonable late charge, as determined by the Board,
 to compensate the Association for increased bookkeeping, billing, administrative costs, and any other
 appropriate charges. No such late charge or interest or any delinquent installment may exceed the
                                                                                         law against the
  maximum rate or amount allowable by law. The Association may bring an action at
  Owner personally obligated to pay any delinquent installment or late charge, or foreclose the lien
                                                                                            provided for
  against the Unit. No Owner may waive or otherwise escape liability for the assessments
  herein by nonuse of the Common Elements or by abandonment of his Unit -
                                                                   installment of an assessment is not paid
           Section 7.2 Notice of Delinquent Installment. If any                           assessment to the
  within thirty (30) days after its due date, the Board may mail notice of delinquent
                                                                                          (a) the amount of
  Owner and to each first Mortgagee of the Unit. The notice shall specify: lien is imposed; (c)
  assessments and other sums due; (b) a description of the Unit against which the
                                                                                   delinquent; (e) the action
  the name of the record Owner of the Unit; Cd) the fact that the installment is
                                                                                from the date the notice is
   required to cure the default; (f) thé date, not less than thirty (30) days
                                                                                       to cure the default on
   mailed to the Owner, by which such default must be cured; and (g) that failure
                                                            acceleration of the balance of the installments
   or before the date specified in the notice may result in
                                                                       of the Unit. The notice shall further
   of such assessment for the then-current Fiscal Year and sale
   inform the Owner of his right to cure  after acceleration. If the delinquent installment of assessments
   and any charges thereon are not paid in full on or before the date specified in the notice, the Board,
                                                                   assessments levied against such Owner
   at its option, may declare all of the unpaid balance Qf such                                            the
    and his Unit to be immediately due and payable without further demand, and may enforce

                                                      -34-
collection of the full assessments and all charges thereon in any manner authorized by law or this
Declaration.

        Section 7.3 Notice of Default and Election to Sell No action shall be brought to enforce any
assessment lien herein, unless at least sixty (60) days have expired following the later of: (a) the date
a notice of default and election to sell is Recorded, or (b) the date the Recorded notice of default and
election Io sell is mailed in the United States mail, certified or registered, return receipt requested, to
the Owner of the Unit. Such notice of default and election to sell must recite a good and sufficient
legal description of such Unit, the Record Owner or reputed Owner thereof, the amount claimed (which
may, at the Association's option, include interest on the unpaid assessment as described in Section
7j above, plus reasonable attorneys' fees and expenses of collection in connection with the debt
secured by such lien), the name and address of the Association, and the name and address of the
Person authorized by the Association to enforce the lien by sale. The notice of default and election
to sell shall be signed and acknowledged by an Association Officer, Manager, or other Person
designated by the Association for such purpose, and such lien shall be prior to any declaration of
homestead Recorded after the date on which this Declaration is Recorded. The lien shall continue
until fully paid or otherwise satisfied. -

        Section 7Á     Foreclosure Sale. Subject to the limitation set forth in Section 7.5 below, any
such sale provided for above may be conducted by the Board, its attorneys, or other Person authorized
by the Board in accordance with the provisions of NRS §116.31164 and Covenants Nos. 6,7 and 5
of NRS § 107 030 and §107.090, as amended, insofar as they are consistent with the provisions of
NRS § 116.31164, as-amended, or in accordance with any similar statute hereafter enacted applicable
to the exercise of powers of sale in Mortgages and Deeds of Trust, or in any other manner permitted
by law. The Association, through its duly authorized agents, shall have the power to bid on the Unit
at the foreclosure sale and to acquire and hold, lease, mortgage, and convey the same. Notices of
 default and election to sell shall be provided as required by NRS § 116.31163. Notice of time and
 place of sale shall be provided as required by NRS § 116.311635.

        Section 7.5      Limitation on Foreclosure. Any other provision in the Governing Documents
notwithstanding, the Association may not foreclose a lien by sale for the assessment of a fine or for
a violation of the Governing Documents, unless the violation is of a type that threatens the health and
welfare of the Owners and Residents of the Community The foregoing limitation shall not apply to
foreclosure of a lien for an Annual Assessment, or Capital Improvement or Reconstruction Assessment,
 or any portion respectively thereof, pursuant to this Article 7.

        Section 7.6 Cure of Default. Upon the timely cure of any default for which a notice of default
 and election to sell was filed by the Association, the Officers thereof shall Record an appropriate
 release of lien, upon payment by the defaulting Owner of a reasonable fee to be determined by the
 Board, to cover the cost of preparing and Recording such release. A certificate, executed and
 acknowledged by any two (2) Directors or the Manager, stating the indebtedness secured by the lien
 upon any Unit created hereunder, shall be conclusive upon the Association and, if acknowledged by
 the Owner, shall be binding on such Owner as to the amount of such indebtedness as of the date of
 the certificate, in favor of all Persons who rely thereon in good faith. Such certificate shall be furnished
 to any Owner upon request, at a reasonable fee, to be determined by the Board.

        Section 7.7 Cumulative Remedies. The assessment liens and the rights of foreclosure and
 sale thereunder shall be in ddition to and not n substitution for all other rights and remedies which
 the Association and its assigns may have hereunder and by law or in equity, including a suit to recover
 a money judgment for unpaid assessments, as. provided above

                                                     - 35 -
         Section 7.8 Mortqaeee Protection. Notwithstanding all other provisions hereof, no lien
created under this Article 7, nor the enforcement of any provision of this Declaration shall defeat or
render invalid the rights of the Beneficiary under any Recorded First Deed of Trust encumbering a Unit,
made in good faith and for value; provided that after such Beneficiary or some other Person obtains
title to such Unit by judicial foreclosure, other foreclosure, or exercise of power of sale, such Unit shall.
remain subjectS to this Declaration and the payment of aH installments of assessmentth accruing
subsequent to the date such Beneficiary or other Person obtains title. The lien of the assessments,
including interest and costs, shall be subordinate to the lien of any First Mortgage upon the Unit The
release or discharge of any lien for unpaid assessments by reason of the foreclosure or exercise of
 power of sale by the First Mortgagee shall notrelieve the prior Owner of his personal obligation for
 the payment of such unpaid assessments.

        Section 7.9 Priority of Assessment Lien. Recording of the Declaration constitutes Record
notice and perfection of a lien for assessments. A lien for assessments, including interest, costs, and
attorneys' fees, as provided for herein, shall be prior to all other liens and encumbrances on a Unit,
except for (a) liens and encumbrances Recorded before the Declaration was Recorded, (b) a first
Mortgage Recorded before the delinquency of the assessment sought to be enforced, and (c) liens for
real estate taxes and other governmental charges, and is otherwise subject to NRS § 116.3116. The
sale or transfer of any Unit shall not affect an assessment lien. However, the sale or transfer of any
Unit pursuant to judicial or nonjudicial foreclosure of a First Mortgage shall extinguish the lien of such
assessment as to payments which becante due prior to such sale or transfer. No sale or transfer shall
relieve such Unit from lien rights for any assessments which thereafter become due. Where the
Beneficiary of a First Mortgage of Record or other purchaser of a Unit obtains title pursuant to a
judicial or nonjudicial foreclosure or "deed in lieu thereof," the Person who obtains title and his
 successors and assigns shall not be Fiable for the share of the Common Expenses or assessments by
 the Association chargeable to such Unit which became due prior to the acquisition of title to such Unit
 by such Person. Such unpaid share of Common Expenses and assessments shall be deemed to
 become expenses collectible from ali of the Units, including the Unit belonging to such Person and his
 successors and assigns.

                                          ARTICLE B
                           ARCHITECTURAL AND LANDSCAPING CONTROL

         Section 8.1 ARC. The Architectural Review Committee,
                                                                            sometimes referred to in this
 Declaration as the "ARC," shall consist of three (3) committee members: provided, however, that such
 number may be increased or decreased by resolution of the Board. Notwithstanding the foregoIng,
 Declarant shall have the sole right and power to appoint all of the members to the ARC until such time
 as Declarant no longer has any power to annex the Annexable Area or any portion thereof; provided
 that Oeclarant, in its sole discretion, by written instrument, may at any eazlier time turn over to the
  Board the power to appoint the members to the ARC; thereafter, the Board shall appoint all members
  of the ARC. A member of the ARC may be removed at any time, without cause, by the Person who
                                                             f
  appointed such member. Unless changed by resolution the Board, the address of the ARC for
                                                                                                      all

  purposes, including the submission of plans for approval, shall be at the principal office of the
  Association as designated by the Board.

           Section 8.2 Review of Plans and Specifications. The ARC shall consider and act upon any
   and all proposals, plans and specifications, drawings, and other information or other items (collectively
   in this Article.8, "plans and specifications") submitted, or required to be submitted, for ARC approval
   under this Declaration and shall perform such other duties as from time to time may be assigned to

                                                       - 36 -
                                                                                     c;í?fl   flfl?


the ARC by the Board, including the inspection of construction in progress to assure conformance with
plans and specifications approved b71he ARC

                      With the exception of any such activity of Declarant, no construction, alteration,
grading, addition, excavation, removal, relocation, repainting, demolition, installation, modification,
decoration, redecoration or reconstruction of an Improvement, including Dwelling and landscaping, or
removal of any tree, shall be commeiced or maintained by any Owner, until the plans and
specifications therefor showing the nature, kind, shape. height, width, color, materials and location of
the same shall have been submitted to, and approved in wnting by, the ARC. No design or
construction activity of Declarant shall be subject to ARC approval. The Owner submitting such plans
and specifications ("Applicant") shaf obtain a wntten receipt therefor from an authorized agent of the
ARC. The ARC shall approve plans and specifications submitted for its approval only if it deems that:
 (1) the construction, alterations, or additions contemplated thereby in the locations indicated will not
be detnmental to the appearance of the surrounding area or the Properties as a whole; (2) the
appearance of any structure affected thereby will be in harmony with other structures in the vicinity;
(3)the construction will not detract from the beauty, wholesomeness and attractiveness of the Common
Elements or the enjoyment thereof by the Members; (4) the construction will not unreasonably interfere
with existing views from other Units; nd (5) the upkeep and mthintenance will not become a burden
on the Association.

                    The ARC may condition its review and/or approval of plans and specifications
for any Improvement upon any one or more or all of the following conditions: (1) agreement by the
Applicant to furnish to the ARC a bond or other security acceptable to the ARC in an amount
reasonably sufficient to (i) assure the completion of such Improvement or the availability of funds
 adequate to remedy any nuisance or unsightly conditions occurring as a result of the partial completion
 of such Improvement, and (ii) to protect the Association and the other Owners against mechanics liens
 or other encumbrances which may be Recorded against their respective interests in the Properties or
 damage to -the Common Elements as a result of such work; (2) such changes therein as the ARC
 deems appropriate; (3) agreement by the Applicant to grant appropnate easements to the Association
 for the maintenance of the Improvement; (4) agreement of the Applicant to reimburse the Association
 for the costs of maintenance; (5) agreement of the Applicant to replace such removed trees as may
 be designated by the ARC; (6) agreement of the applicant to submit"as-buiW' record drawings certified
                                                                                              constructed
 by a licensed architect or engineer which describe the Improvements in detail as actually
                                                                         by Applicant, of the ARC and/or
  upon completion of the Improvement: (7) payment or reimbursement,
                                                                                             (8) payment,
  its members for their actual costs incurred in considering theplans and specifications;
                                                                                   review the plans and
  by Applicant, of the professional fees of a licensed architect or engineer to
 specifications on behalf of the ARC, if such review is deemed by the ARC to be necessary or
                                                      ARC may reasonably determine to be prudent and
 desirable; nd/or (9) such other conditions as the
 in the best interests of the Association. The ARC may further require submission of additional plans
 and specifications or other information prior to approving or disapproving -materials submitted. The
 ARC may also issue rules or guidelines setting forth procedures for the submission of plans and
  specifications, requiring a fee to accompany each application for approval, or stating additional factors
                                                                        ARC may provide that the amount
  which it will take into consideration in reviewing submissions. The
                                                                           other reasonable manner, such
  of such fee shall be uniform, or that the fee may be determined in any
                                                           alteration or addition contemplated or the cost
  as based upon the reasonable cost of the construction,
                                                                    in reviewing plans and specifications.
  of architectural or other professional fees incurred by the ARC
                                                                                                 for its
                        The ARC may require such detail in plans and specifications submitted
                                                             floor plans, site plans, drainage plans,
   review as it deems proper, including without limitation,              exterior materials and colors.
   landscaping plans, elevation drawings and descriptions or samples of

                                                     - 37 -
Until receipt by the ARC of any required plans and specifications, the ARC may postpone. review of
any plans and specifications submitted for approval. Any application submitted pursuant to this Section
8.2 shall be deemed approved, unless written disapproval or a request for additional information or
materials by the ARC shall have been transmitted to the Applicant within forty-five (45) days after the
date of receipt by the ARC of all required materials. The ARC will condition any approval required in
this Article 8 upon, among other things, compliance with Declarant's (a) desigh criteria, (b)
Improvement standards and (c) . development standards, as amended from time to time, all of which
are incorporated herein by this reference..

               (d)    Any Owner aggrieved by a decision of the ARC may appeal the decision to the
ARC in accordance with procedures tp be established by the ARC. Such procedures would include
the requirement that the appellant has modified the requested action or has new information which
would in the ARC's opinion warrant reconsideration, if the ARC fails to àllow an appeal or if the ARC.
after appeal, again wies in a manner aggrieving the appellant, the decision of the ARC is final. The
foregoing notwithstanding, after such time as the Board appOints all members of the ARC, all appeals
from ARC decisions shall be made to the Board, which shall consider and decide such appeals.

         Section 5.3 Meetinas of the ARC. The ARC shall meet from time to time as necessary to
perform its duties hereurider. The ARC may from time to time, by resolution unanimously adopted in
writing, designate an ARC representative (who may, but need not, be one of its members) to take any
action or perform any duties for and on behalf of the ARC, except the granting of variances pursuant
to Section 8.8 below. In the absence of such designation, the vote of a majority of the ARC, or the
written consent of a majority of the ARC taken without a meeting, shall constitute an act of the ARC.

       Section 8.4 No Waiver of Future Approvals. The approval by the ARC of any proposals or
plans and specifications or drawings for any work done or proposed or in connection with any other
matter requiring the approval and consent of the ARC, shall not be deemed to constitute a waiver of
any right to withhold approval or consent as to any similar proposals, plans and specifications,
drawings or matters subsequently or additionally submitted for approval or consent.

     Section 8.5 Compensation of Members. Subject to the provisions of Section 8.2(b) above,
members of the ARC shall .not receive compensation from the Association for services rendered as
members of the ARC.

       Section 8.6     Correction of Defects. tnspection of work and correction of defects therein shall
 proceed as follows:

                (a)    The ARC or its duly appointed representative shall have the right to inspect any
 Improvement ("Right of Inspection") whether or not the ARC's approval has been requested or given.
 Such Right of Inspection shall, however, terminate sixty (60) days after receipt by the ARC of written
 notice from the Owner of the Unit that the work of Improvement has been completed If, as a result
 of such inspection, the ARC finds that such Improvement was done without obtaining approval of the
 plans and specifications therefor or was not done in substantial compliance with the plans and
 specifications approved by the ARC, it shall, within sixty (60) days from the inspection, notify the
 Owner in writing of the Owner's failure to comply with this Article 8 specifying the particulars of
 noncompliance. If work has been performed without approval of plans and specifications therefor, the
 ARC may require the Owner of the Unit in which the Improvement is located, to submit "as-buiW' recòrd
 drawings certified by a licensed architect or engineer which describe the Improvement in detail as
 actually constructed. The ARC shall have the authority to require the Owner to take such action as
 may be necessary to remedy the noncompliance.

                                                   - 38 -
                      If, upon the expiration of sixty (60) days from the date of such notification, the
Owner has failed to remedy such noicompliance, the ARC shall notify the Board in writing of such
failure. Upon Notice and Heanng, the Board shall determine whether there is a noncompliance and,
if so, the nature thereof and the estimated cost of correcting or removing the same. If a
noncompliance exists, the Owner shall remedy or remove the same within a period of not more than
forty-five (45) days from the date that notice of the Board ruling is given to the Owner. If the Owner
does not comply with the Board ruling within that period, the Board, at its option, may Record a notice
of noncomptance and commen a lawsuit for damages or injunctive relief, as appropriate, to remedy
the noncompliance, and, in addition, may peacefully remedy the noncompliance. The Owner shall
reimburse the Association, upon demand, for all expenses (including reasonable attorneys' fees)
incurred in connection therewith. If such expenses are not promptly repaid by the Owner to the
Association, the Board shall levy a Special Assessment against the Owner for reimbursement as
provided in this Declaration. The right of the Association to remove a noncomplying Improvement or
otherwise to remedy the noncompliance shall be in addition to all other nghts and remedies which the
Association may have at law, in equity, or in this Declaration.

                       If for any reason the ARC fails to notify the Owner of any noncompliance with
previously submitted and approved plans and specifications within sixty (60) days after receipt of
written -notice of completion from the Owner, the Improvement shall be deemed to be in accordance
with the approved plans.

               (d)     All construction, alteration or other work shall be performed as promptly and as
diligently as possible and shall be completed within one hundred eighty (180) days of the date on
which the work commenced,

        Section 8.7 Score of Review. The ARC shall review and approve, conditionally approve, or
disapprove, all proposals, plans and specifications submitted lo it for any proposed Improvement,
alteration, or addition, solely on the basis of the considerations set forth in Section 8.2 above. The
ARC shall not be responsible for reviewing, nor shall its approval of any plan or design be deemed
approval of, any proposal, plan or design from the standpoint of structural safety or conformance with
building or other codes. Each Owner shall be responsible for obtaining all necessary permits and for
complying with all City and County requirements.                                              --



          Section 8.8 Variances. When circumstances such as topography, natural obstructions,
 hardship, or aesthetic or environmental considerations may require, the ARC may authorize variances
 from compliance with any of the architectural provisions of this Declaration, including without limitation,
 restrictions on height, size, floor area or placement of structures, or similar restrictions. Such
 variances must be evidenced in writing, must be signed by a majority of the ARC, and shall become
 effective upon Recordation. If such variances are granted, no violation of the covenants, conditions
 and restrictions contained in this Declaration shall be deemed to have occurred with respect to the
 matter for which the variance was granted The granting of such vanance shall not operate to waive
 any of the terms and provisions of this Declaration for any purpose except as to the particular property
  and particular provision hereof covered by the vanance, nor shall it affect in any way the Owner's
  obligation to comply with all governmental laws and regulations affecting the use of his Unit, including
  but not limited to zoning ordinances and Lot set-back lines or requirements imposed by the City, the
  County, or any municipal or other public authority. The granting of a variance shall not be deemed
  to be approval from the standpoint of compliance with such laws or regulations, norfrom the standpoint
  of structural safety, and the ARC, provided it acts in good faith, shall not be liable for any damage to
  an Owner as a result of its granting or denying of a variance.


                                                    - 39 -
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        Section 8.9 Additional Desiqrì Guidelines for Custom Lots. Declarant, in its sole discretion,
from time to time may promulgate additional Design Guidelines for Cqstom Lots (in which event, the
Owners of Custom Lots and the ARC shall additíonall' follow and abide by the Design Guidelines in
the implementation of this Article 8).

         Section 8.10 Non-Liability for Approval of Plans. The ARC's approval of proposals or plans
an& specifications shall not constitute a representation, warranty or guarantee, whether express or
implied, that such proposals or plans and specifications comply with good engineering design or with
zoning or building ordinances, or other governmental regulations or restrictions. By approving such
proposals or plans and specifications, neither the ARC, the members thereof, the Association, the
Board, nor Dedarant, assumes any liability or responsibility therefor, or for any defect in the structure
constructed from such proposals or plans or specifications. Neither the ARC, any member thereof,
the Association, the Board, nor Declarant, shall be liable to any Member, Owner, occupant, or other
 Person or entity for any damage, loss, br prejudice suffered or claimed on account of (a) the approval
 or disapproval of any proposals, plans and specifications and drawings, whether or not defective, or
 (b) the construction or performance of any' work, whether or not pursuant to the approved proposals,
 plans and specifications and drawings.

        Section 8.11 Declarant Exemotion. The ARC shall have no authority, power or jurisdiction
over Units owned by Declarant, and the provisions of this Article 8 shall not apply to Improvements
built by Declarant, or, until such time as Declarant conveys title to the Unit to a Purchaser, to Units
owned by Declarant. This Article B shall not be amended without Declarant's written consent set forth
on the amendment.


                                        ARTICLE 9
                            MAINTENANCE AND REPAIR OBLIGATIONS

        Section 9.1    Maintenance Obliqations of Owners. lt shall be the duty of each Owner, at his
sole cost and expense, subject to the provisions of this Declaration requiring ARC approval, to
maintain, repair, replace and restore all Improvements located on his Unit, the Unit itself, and any
"Limited Common Element" (as said temi is defined by NRS § 116.110355) pertaining to his Unit, in
 a neat, sanitary and attractive condition. If any Owner shall permit any Improvement, the maintenance
 of which is the responsibility of such Owner, to fall into disrepair or to become unsafe, unsightly or
 unattractive, or otherwise to violate this Declaration, the Board shall have the right to seek any
 remedies at law or in equity which the Association may have. In addition, the Board shall have the
 right, but not the duty, after Notice and Hearing as provided in the Bylaws, to enter upon such Unit to
 make such repairs or to perform such maintenance and to charge the cost thereof to the Owner. Said
 cost shall be a Special Assessment, enforceable as set forth in this Declaration.

         Section 9.2 Maintenance Oblications of Association. No Improvement, excavation or work
 which in any way alters the Common Elements shall be made or done by any Person other than the
 Association or its authorized agents after the completion of the construction or installation of the
 Improvements thereto by Declarant. Subject to theprovisions of Sections 9.3 and 11.1(b) hereof, upon
 commencement of Annual Assessments on the Properties, the Association shall provide for the
 maintenance repair, and replacement of the Common Elements. The Common Elements shall be
 maintained in a safe, sanitary and attractive condition, and in goad order and repair. The Association
 shall also provide for any utilities serving the Common Elements. The Association shall also ensure
 that the landscaping on the Common Elements is regularly and periodically maintained in good order
 and in a neat and attractive condition. The Association shall not be responsible for the maintenance

                                                    -40 -
of any portions of the Common Elements which have been dedicated to and accepted for maintenance
by a state, local or municipal govern iental agency r entity. All of the foregoing obligations of the
Association shall be discharged wheñ ànd in such manner as the Board shall determine in its judgment
to be appropriate

        Section 9.3    Damage by Owners to Common Elements. The cost of any maintenance, repairs
or replacements by theAssocration within the Common Elements arising out of or caused by the willful
or negligent act of an Owner, his tenants, or their respective Families, guests or invitees shall, after
Notice and Hearing, be levied by the Board as a Special Assessment against such Owner as provided
in Section 11.1(b) hereof.

        Section 9 4 Damace and Destrucion Affecting Dwellinqs and Duty to Rebuild. If all or any
portion of any Unit or Dwelling is damaged or destroyed by fire or other casualty, it shall be the duty
of the Owner of such Unit to rebuild, repair or reconstruct the same in a manner which will restore the
Unit substantially to its appearance and condition immediately pnor to the casualty or as otherwise
approved by the ARC The Owner of any damaged Unit shall be obligated to proceed with all due
diligence hereunder, and such Owner shall cause reconstruction to commence within three (3) months
after the damage occurs and to be completed within six (6) months after the damage occurs, unless
prevented by causes beyond his reasonable control. A transferee of title to the Unit which is damaged
shall commence and complete reconstruction in the respective periods which would have remained
for the performance of such obligations if the Owner at the time of the damage still held title to the
Unit. However, in no event shall such transferee of title be required to commence or complete such
reconstruction in less than ninety (90) days from the date such transferee acquired title to the Unit.

         Section 9.5 Party Walls. Each wall which is built as a part of the onginal construction by
Declarant and placed on the property line between Units shall constitute a party wall In the event that
any party wall is not constructed exactly on the property line, the Owners affected shall accept the
party wall as the property boundary. The cost of reasonable repair and maintenance of party walls
shall be shared by the Owners who use such wall in proportion to such use (e.g., if the party wall s
the boundary between two Owners, then each such Owner shall bear half of such cost). If a party wall
is destroyed or damaged by fire or other casualty, the party wall shall be promptly restored, to its
condition and appearance before such damage or destruction, by the Owner(s) whose Units have or
had use of the wall. Subject to the foregoing, any Owner whose Unit has or had use of the wall may
restore the wall to the way it existed before such destruction or damàge, and any other Owner whose
 Unit makes use of the wall shall contribute to the cost of restoration thereof in proportion to such use,
 subject to the right of any such Owner to call for a larger contribution from another Owner pursuant
 to any rule of law regarding liability for negligent or willful acts or omissions. Notwithstanding any other
 provision of this Section 9.5, an Owner who by his negligent or willful act causes a party wall to be
 exposed to the elements, or otherwise damaged or destroyed, shall bear the entire cost of fumishing
 the necessary protection repair or replacement. The right of any Owner to contribution from any other
 Owner under this Section 9.5 shall be appurtenant to the land and shall pass to such Owner's
 successors in title. Any other provision herein notwithstanding, no Owner shall alter, add to, or remove
 any party wall constructed by Declarant. or portion of such wall, without the prior written consent of
  the other Owner(s) who share such party wall, which consent shall not be unreasonably withheld. In
  the event of any dispute ansing conceming a party wall under the provisions of this Section 9.5, each
  party shall choose one arbitrator, such arbitrator shall choose one additional arbitrator, and the
  decision of a msjority of such panel of arbitrators shall be binding upon the Owners which are a party
  to the arbitration.



                                                     -41 -
      Section 9.6   Perimeter Walls. Walls and/pr fences located generally around the exterior
boundary of the Properties ("perimeter wails"), constructed or to be constructed by Declarant, are
Improvements al! portions of which are located, or conclusively deemed to be located, within the
boundaries of individual Lots. By acceptance of a deed to his Unit, each Owner on whose Lot a
portion of the perimeter wall is located, hereby covenants, at the Owner's sole expense, with regard
to said portion of the perimeterwall ("Unit Wall"): to maintain at all times in effect thereon property and
casualty insurance, on a current replacement cost; to maintain and keep the Unit Wall at all times in
good repair and; if and when reasonably necessary, to replace the Unit Wall to its condition arid
appearance as originally constructed by Declarant. No changes or alterations (including, without
limitation, temporary alterations, such as removal of the Unit Wall for construction of a swimming pool
or other Improvement) shall be made to any perimeter wall, or any portion thereof, without the prior
written approval of the ARC, and any request therefor shall be subject to the provisions of Article 8
above, including, but not necessarily limited to any conditions imposed by the ARC pursuant to
Section 8.2(b) above. The foregoing and any other provision herein notwithstanding, under no
circumstances shall any wall, or portion thereof, originally constructed by Declarant, be changed,
altered or removed by any Owner (or agent or contractor thereof) if such wall, or portiàn thereof, is
shown on any improvement plan as a flood control wall, or any other wall, or if such change, alteration
or removal in the sole judgment of the ARC would adversely affect surface water, drainage, or other
flood control considerations or requirements. If any Owner shall fail to insure, or to maintain, repair
or replace his Unit Wall within sixty (60) days when reasonably necessary, in accordance with this
 Section 9.6, the Association shall be entitled (but not obligated) to insure, or to maintain, repair or
 replace such Unit Wall, and to assess the full cost thereof against the Owner as a Special Assessment.
which may be enforced as provided for in this Declaration. The foregoing notwithstanding, the
Association, at its sole expense, shall be responsible for removing or painting over any graffiti from
or on the exterior only side facing public streets abutting the exterior boundary of the Properties
("exterior side of perimeter walls").

         Section 9.7    Installed Landscaoinq.

                        Declarant shall have the option, in its sole discretion, to install landscaping on
 the front yards and other portions of Lots CDeclarant lnstalled..Landscapingï.. Subject to the foregoing
 and to Section 9.8 below, and subject further to the requirements of Article S (Architectural and
  Landscaping Control), above, each Owner shall have, following the close of escrow on his Lot (a) sixty
  (60) days in which to complete front yard landscaping (provided that front yard landscaping shall be
  completed on any Custom Lot within sixty (60) days after issuance of an occupancy permit for the
  Dwelling thereon), and (b) six (6) months within which to commence and thereafter diligently prosecute
  and complete installation of all other landscaping on the Lot (all, collectively, 1-lomeowner Installed
                                                                              Installed Landscaping shall
 Landscaping"). Declarant Installed Landscaping and Homeowner
- collectively be referred to herein as lnstalled Landscaping."

                         Each Owner shalt be responsible, at his soie expense, for (1) maintenance,
  repair, replacement, and watering of all Installed Landscaping on his Lot in a neat and attractive
  condition; and (2) maintenance repair, and/or replacement of all or any portion of any irrigation,
                                                                                     located on his Lot.
  sprinkler, or related systems and equipment pertaining to Installed Landscaping
  Each Owner may select his own landscaper or    landscaping company rLandscaper) to perform such
                                                                                  promulgated from time
  functions; provided that any such Landscaper shall be selected from a listing
                                                                                          be deemed to
   to time by the ARC in its sole discretion. Such listing shall under no circumstances
                                                                                              other than
   constitute any representation or warranty whatsoever with regard to any listed Landscaper,
   that an Owner may enter into his own independent contractual relations, at his own risk and expense,
   with such listed Landscaper.

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                       To help prevent and/or control water damage to foundations and/or walls, each
Owner covenants, by acceptance of .deed to his Lot, whether or not so stated in such deed, to not
cause or permit irrigation water or sprhkler water ori his Lot to seep or flow onto, or to strike upon,
any foundation, slab, side or other portion of Dwelling, wall (including, but not necessarily limited to,
party wall and/or perimeter wall), and/or any other Improvement. Without limiting the generality of the
foregoing or any other provision in this Declaration, each Owner shall at all times ensure that there are
no unapproved grade changes (including, but not necessanly limited to, mou nding) within three (3) feet
of any such foundation or wall located on or immediately adjacent to the Owner's Lot.

                      Absent pnor wntten approval of the ARC, in its sole discretion, no Owner may
add to, delete, modify, or change any Installed Landscaping.

       Section 9.8 Landscapiri on Rear Yards of Lots Abuttin Golf Courses. This Section 9.8
applies to all Lots directly abutting any portion of the Golf Courses. Subject to Article 8 above.

                        in the event that an Owner installs, or causes to be installed, a fence in the rear
yard area of his Lot, then: (a) the fence shall be a wrought iron "view" fence, not to exceed thirty (30)
inches in height, and shall be recessed at least two (2) feet from the boundary of the Lot abutting the
Golf Course, and (b) the portion of such rear yard rea ("Intervening Area") between the recessed
fence and the abutting Golf Course must be landscaped by the Owner with shrubbery as may be
approved by the ARC (in no event shall the Intervening Area remain unimproved or improved only with
sod or lawn); and

                       notwithstanding the foregoing, for each such Lot, on which there s insta7lled or
 located a swimming pool, the Owner shall have installed on such Lot, a five (5) foot high wrought iron
 "view" fence abutting the Golf Course, and the Owner also shall have installed immediately outside
 such fence a planter area ("Planter Area") consisting of shrubbery as approved by the ARC (but in no
 event unimproved or improved only with sod or lawn), which planter area shall extend up to five (5)
 feet onto the Golf Course, subject to approval by the owner of the Golf Course); and

                       the ARC may, in its sole discretion, consider and/or approve installation by an
 Owner of plexiglass or similar "view" panels in lieu of the wrought iron fencing referenced above; and

                       the Owner of a Lot ori which is located an Intervening Area, or to which is
 appurtenant a Planter Area, shall be responsible, at his sole expense, for installation, maintenance,
 repair, and/or replacement of all fence (and/or view panel), irrigation, and shrubbery, located
 respectively thereon, as the foregoing shall be subject to approval by the ARC; and

 -                  (e) absent prior wntten approval of the ARC, in its sole discretion, no Owner may
  add to, delete, modify, or change any Improvement installed on or adjacent to an Intervening Area or
  Planter Area.

             Section 9.9 Maintenance of Security Lichtinq. Each Owner shall maintain in good and
     operating condition the exterior security landscape lighting (if any) installed on the exterior and/or front
     yard or rear yard area of the Dwelling. Such maintenance shall include, but not be limited to, the
                                                                                                such lights, and
     replacement of light bulbs and photoelectric cells, the provision of electrical power to
                                                                                                       in its sole
     timely payment of electrical service, as applicable. Absent prior written approval of the ARC,
      discretion,, no Owner may delete, modify, or change any photoelectric cell as initially installed by
                                                                                    disconnecting lighting from
      Declarant, or any lighting activated thereby (including, without limitation,
      such photoelectric cell and/or connecting such lighting to a timer device). If any Owner shall fail to so

                                                         - 43 -
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                                                                                     I          a




maintain such exterior lighting, or permit such lighting to.falI into disrepair, or delete or modify such
lighting without prior approval of the ARC, the Association shall have the right to correct such
conditión. If any such condition is corrected by the Association, the Asáociation shall be fully
reimbursed by the Lot Owner for all costs incurred.

        Section 9.10 Modification of Improvements. Maintenance and repair of Common Elements
shall be thé responsibility of the Association, and the costs of such maintenance and repair shall be
Common Expenses; provided that, in the event that any Improvement located an a Common Element
is damaged because of any Owner's act or omission, such Owner shall be solely liable for the costs
of repairing such damage and any and all costs reasonably related thereto, all of which costs may be
assessed against such Owner as a Special Assessment under this Declaration. Each Owner
covenants, by acceptance of a deed to his Unit, whether or not so stated in such deed, to not add to,
delete, modify, change, or landscape, all or any portion of the Common Elements, or perimeter wall,
or Site Visibility Restriction Area, without prior written approval of the ARC.


                                             ARTICLE 10
                                          USE RESTRICTIONS

         Subject to the rights and exemptions of Declarant as set forth in this Declaration, all realS
 property within the Properties shall be held, used and enjoyed subject to the limitations, restrictions
 and other provisions set forth in this Declaration. The strict application of the limitations and
 restrictions set forth in this Article lo may be modified or waived in whole or in part by the ARC in
 specific circumstances where such strict application would be unduly harsh, provided that any such
 waiver or modification shall not be valid unless in writing and executed by the ARC. Any other
                                                                                             respective
 provision herein notwithstanding, neither Declarant, the Association, the ARC, nor their
                                                                                              other Person
 directors, officers, members, agents or employees shall be liable to any Owner or to any
                                                                                  withholding of a waiver or
 as a result of the failure to enforce any use restriction or for the granting or
 modification of a use restriction as provided herein.
                                                                    be improved and used solely as a
         Section 10.1 Sinale Family Residence. Each Unit shall                                   be used
 residence for a single Family and for no other purpose: No patof the Properties shall ever
                                                                           directly or indirectly, for any
 or caused to be used or allowed or authorized to b! used in any way,
                                                                                 "reverse engineering."
  business, commercial, manufacturing, mercantile, primary storage, vending,
 destructive construction testing, or any other nonresidential purposes; provided that Declarant may
                                                                               of this Section 10.1 shall
  exercise the reserved rights described in Article 14 hereof. The provisions
                                                                             of child care, provided that
  not preclude a professional or administrative occupation, or an occupation
                                                                     Family children being cared for at
  the number of nan-Family children, when added to the number of
                                                                              provided further that there
  the Unit, shall not exceed a maximum aggregate of five (5) children, and
                                                                 such occupation is conducted in
  is no external evidence of any such occupation, for so long as                   the use of the
                                                                                        to
  conformance with all applicable governmental ordinances and are merely incidental renting or leasing
                                                                                  frQrn
  Dwelling as a residential home. This provision shall not preclude any Owner
                                                                    subject ,to this Declaration and any
  his entire Unit by means of a written lease or rental agreement a term of less than thirty (30) days.
  Rules and Regulations; provided   that no such lease shall be for

          Section 10.2 No Further Subdivision. Except as may be expressly authorized by Declarant.
                                                                                              into
                                                             (including, without limitation, any division
   no Unit or Common Elements may be further subdivided
                                                                         approval of the Board; provided.
   time-share estates or time-share uses) without the prior written
                                                                    right of an Owner (1) to rent or lease
   however, that this provision shall not be construed to limit the                                       this
   his entire Unit by means of a written lease or rental agreement subject to the restrictions of
Declaration, so long as the Unit is not leased for transient or hotel purposes; (2) to sell his Unit; or (3)
to transfer or sell any Unit to more thai one person to be held by them as tenants-incommon, joint
tenants, tenants by the entirety or as community property The terms of any such lease or rental
agreement shall be made expressly subject to the Goveming Documents. Any failure by the lessee
of such Unit to comply with the terms of the Governing Documents shall constitute a default under the
lease or rental agreement. No two or more Units in the Properties may be combined in any manner
whether to create a larger Unit or otherwise, and no Owner may permanently remove any block wall
or other intervening partition between Units.

        Section 10.3 Insurance Rates Without the pnor written approval of the ARC and the Board,
nothing shall be done or kept in the Properties which will increase the rate of insurance on any Unit
or other portion of the Properties, nor shall anything be done or kept in the Properties which would
result in the cancellation of insurance on any Unit or other portion of the Properties or which would be
a violation of any law Any other provision herein notwithstanding, neither the ARC nor the Board shall
have any power whatsoever to waive or modify this restriction.

         Section 10 4 Animal Restrictions No animals, reptiles, poultry, fish, or fowl or insects of any
kind ("animals") shall be raised, bred or kept on any Unit, except that a reasonable number of dogs,
cats, birds-or fish may be kept, provided that they are not kept, bred or maintained for any commercial
purpose, nor in unreasonable quantities nor in violation of any applicable City or County ordinance or
any other provision of the Declaration, and such limitations as may be set forth in the Rules and
Regulations. As used in this Declaration, "unreasonable quantities" shall ordinarily mean more than
two (2) pets per household; provided, however, that the Board may determine that a reasonable
number in any instance may be more or leas The Assàciation, acting through the Board, shall have
the nght to prohibit maintenance of any animal in any Unit which constitutes, in the opinion of the
Board, a nuisance to other Owners or Residents. Subject to the foregoing, animals belonging to
 Owners, Residents, or their respective Families, licensees, tenants or invitees within the Properties
 must be either kept within an enclosure, an enclosed yard or on a leash or other restraint being held
 by a person capable of controlling the animal. Furthermore, to the extent permitted by law, any Owner
 and/or Resideit shall be liable to each and all other Owners, Residents, and their respective Families,
 guests, tenants and invitees, for any unreasonable noise or damage to person or property caused by
 any animals brought or kept upon the Proerties by an Owner or Resident or respective Family,
 tenants or guests; and it shall be the absolute duty and responsibility of each such Owner and
 Resident to clean up after such,animals in the Properties or streets abutting the Properties. Without
  limiting the foregoing. (a) no "dog run" or similar structure pertaining to animals shall be placed or
  permitted in any Lot, unless approved by the ARC in advance and in writing (and, in any event, any
  such "dog run" or similar structure shall not exceed the height of any party wall on the Lot, and shall
  otherwise not be permitted, or shall be immediately removed, if it constitutes a nuisance in the
 reasonable judgment of the ARC), and (b) all Owners shall comply fully in all respects with all
 applicable County and City ordinanoes and rules regulating and/or pertaining to animals and the
 maintenance thereof on the Owner'i Lot and/or any other portion of the Properties.

          Section 10.5 Nuisances. No rubbish, clippings, refuse, scrap lumber or metal; no grass,
  shrub or tree clippings; and no plant waste, compost, bulk materials, or other debris of any kind; (all,
  collectively, hereinafter, "rubbish and debns") shall be placed or permitted to accumulate anywhere
  within the Properties, and no odor shall be permitted to anse therefrom so as to render the Properties
  or any portion thereof unsanitary, unsightly, or offensive. Without limiting the foregoing, all rubbish and
  debris shall be kept at all times in covered, sanitary containers or enclosed areas designed for such
  purpose.- Such containers shall be exposed to the view of the neighboring Units only when set out for
                                                                  befare or after scheduled trash collection
  a reasonable period of time (not to exceed twelve (12) hours

                                                      - 45 -
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                                                                                          I
                                                                                       .JkL ._



hours). No noxious pr offensive activities (inckiding, but not hmited to the repair of motor vehicles)
shall be taMed out on the Properties. No noise or other nuisance shaH be pemiitted to exist or
operate upon any portion of a Unit so as to be offensive or detrimental to any other Unit or to
occupants thereof, to the Common Elements, or to the Country Club and/or Golf Courses or golfers.
Without limiting the generality of any ofthe foregoingprovisions, no exterior speakers, homs, whistles,
bells or other similar or unusually loud sound devices (other than devices used exclusively for safety,
security or fire protection púrposes), noisy or smokey vehicles, large power equipment or large power
tools (excluding lawn mowers and other equipment utilized in connection with ordinary landscape
maintenance), inoperable vehicle, unlicensed off-road motor vehicle, or other item which may
unreasonably disturb other Owners or Residents, or any equipment or item which may unreasonably
interfere with television or radio reception within any Unit, the Common Elements, shall be located,
used or placed on any portion of the Properties without the prior written approval of the ARC. No loud
motorcycles, dirt bikes or other loud mechanized vehicles may be operated on any portion of the
Common Elements without the prior written approval of the ARC, which approval may be withheld for
any reason whatsoever. Alarm devices used exclusively to protect the security of a Dwelling and its
contents shall be permitted, provided that such devices do not produce annoying sounds or conditions
as a result of frequently occurring false alarms. The Board shall have the right to determine if any
 noise, odor, or activity producing such noise or odor constitutes a nuisance. Each Owner and Resident
 shall comply with all of the requirements of the local or state health authorities and with all other
governmental authorities with respect to the occupancy and use of a Unit, including Dwelling. Each.
 Owner and Resident shall be accountable to the Association and other Owners and Residents for the
 conduct and behavior of children and other Family members or persons residing in or visiting his Unit;
 and any damage to the Common Elements, personal property of the Association or property of another
 Owner or Resident, caused by such children or other Family members, shall be repaired at the sole
 expense of the Owner of the Unit where such children or other Family members or persons are
 residing or visiting.

       Section 10.6 Exterior Maintenance and Reair Owner's Obliqations. No Improvement
 anywhere within the Properties shall be permitted to fall into disrepair, and each Improvement shall
 at all times be kept in good condition and repair.          If any Owner or Resident shall permit any
 Improvement, which is the responsibility of such Owner or Resident to maintain, to fall into disrepair
 so as to create a dangerous, unsafe, únsightly or unattractive condition, the Board, after consulting
 with the ARC, and after affording such Owner or Resident reasonable notice, shall have the right but
 not the obligation to correct such condition, and to enter upon such Owner's Unit, for the purpose of
 so doing, and such Owner and/or Resident shall promptly reimburse the Association for the cost
 thereof. Such cost may be assessed as a Special Assessment pursuant to Section 6.11 above, and,
 if not paid timely when due, shall constitute an unpaid or delinquent assessment for all purposes of
 Article 7, above. The Owner and/or Resident of the offending Unit shall be personally liable for all
  costs and expenses incurred by the Association in taking such corrective acts, plus all costs incurred
  in collecting the amounts due. Each Owner and/or Resident shall pay all amounts due for such work
  within ten (10) days after receipt of written demand therefor.

          Section 10.7 Drainaee. By acceptance of a deed to a Unit, each Owner agrees for himself
  ànd his assigns that he will not in any way interfere with or alter, or permit any Resident to interfere
  with or alter, the established drainage pattern over any Unit, so as to affect said Unit, any other Unit.
  or the Common Elements or Summerlin Community Association Property, unless adequate alternative
  provision is made for proper drainage and approved in advance and in writing by the ARC, and any
  request therefor shall be subject to Article 8 above, including, but not necessarily limited to, any
  condition imposed by the ARC pursuant to Section 8.2(b) above; Without limiting the generality of the
  foregoing, any request by an Owner for ARC approval of alteration of established drainage pattem

                                                    - 46 -
shall be subject to payment, by the Owner, of the professional fees of a licensed engineer to review
the plans and specifications on behalf of the ARC, pursuant to Section 8.2(b)(8) above, which shall
be required in all such cases, and' fu'Pther shall be subject to the Owner obtaining ali necessary
governmental approvals pursuantto Section 8.7, above. Forthe purpose hereof, 'established drainage
 pattern" is defined as the drainage which exists at the time that such Unit is conveyed to a Purchaser
from Declarant, or later grading changes which are shown on plans and specifications approved by
the ARC. -

      Section 10.8 Water Suoolv and Sewer Systems No individual water supply system, or
cesspool, septic tank, or other sewage disposal system, .or exterior water softener system, shall be
permitted on any 'Unit unless such system is designed, located, constructed and equipped in
accordance with the requirements, standards and recommendations of any water or sewer district
serving the Properties, and any applicable governmental health authorities having jurisdiction, and has
been approved in advance and in writing by the ARC.

        Section 10.9 No Hazardous Activities.          No activities shall be conducted, nor shall any
Improvements be constructed, anywhere in the Properties which are or might be unsafe or hazardous
to any Person, Unit, or Common Elements or Summerlin Community Association Property. Without
limiting the foregoing, (a) no firearm shall be discharged within the Properties, and (b) there shall be
no exterior or open fires whatsoever, except a barbecue fire contained within a receptacle
 commercially designed therefor, while attended and in use for cooking purposes, or except within a
'fireplace designed to prevent the dispersal of burning embers, so that no fire hazard is created, or
 except as specifically authorized in writing by the ARC (all as subject to applicable ordinances and fire
 regulations).

         Section 10.10 No Unsichtiv Articles. No unsightly article, facility, equipment, object, or condition
 (including, but not limited to, clotheslines, garden or maintenance equipment, or inoperable vehicle)
 shall be permitted to remain on any Unit so as to be visible from any street, or from any other Unit,
 Common Elements, or neighboring property. Without limiting the foregoing or any other provision
 herein, all refuse, garbage and trash shall be kept at all times in covered, sanitary containers or
 enclosed areas designed for such purpose. Such containers shall be exposed to view of the public,
 or neighboring Units, only when set out for a reasonable penod of time (not to exceed twelve (12)
 hours before and after scheduled trash collection hours).

        Section 10.11 No Temporary Structures. Unless required by Declarant dunng the initial
 construction of Dwellings and other Improvements, or unless approved in writing by the ARC in
  connection with the construction of authorized Improvements, no outbuilding, tent, shack, shed or other
  temporary or portable structure or Improvement of any kind shall be placed upon any portion of the
 'Properties. No garage, carport, trailer, camper, motor home, recreational vehicle, or other vehicle, or
  any Improvement other than a Dweliing. shall be used as a residence in the Properties, either
 temporarily or permanently

          Section 10 12 No Dnllinq. No oil drilling, oil, gas or mineral development operations, oil
  refining, geothermal exploration or development, quarrying or mining operations of any kind shall be
  permitted upon, in, or below any Unit or the Common Elements, nor shall oil, water or other wells,
  tanks, tunnels or mineral excavations or shafts be permitted upon or below the surface of any portion
  of the Properties. No derrick or other structure designed for use in boring for water, oil, geothermal
   heat, natural gas, or other mineral or depleting asset shall be erected. Declarant hereby reserves all
                                                                                          Properties and all
   water rights, if and to the extent there are any water nghts. pertaining to all of the
   portions thereof.

                                                      - 47 -
       Section 10.13 Alterations. There shall be no excavation, construction, alteration or erection of
any projection which in any way alters the exterior appearance of any Improvement from any street,
or from any other portion of the Properties (other than minor repairs or rebuilding pursuant to Section
10.6 above) without the prior approval of the ARC pursuant to Article 8 hereof. There shall be no
violation of the setback, side yard or other requirements of local governmental authorities,
notwithstanding any approval of the ARC. This Section 10.13 shall flot, be deemed to prohibit minor
repairs or rebuilding which may be necessary for the purpose of maintaining or restoring a Unit to its
original condition.

        Section 10.14 Sions. Subject to the reserved rights.of Declarant contained in Article 14 hereof,
no flag, flag pole, balloon, beacon, banner, sign. poster, display, billboard or other advertising device
or other display of any kind shall be installed or displayed to public view on any portion of the
Properties, or on any public street abutting the Properties, without the prior written approval of the
ARC, except: (a) one (1) sign for each Unit, not larger than eighteen (18) inches by thirty (30) inches,
advertising the Unit for sale or rent or (b) traffic End other signs installed by Declarant as part of the
original construction of the Properties. All signs or billboards and the conditions promulgated for the
regulation thereof shall conform to the regulations of all applicable governmental ordinances.

        Section 10.15 Imorovements.

                        No Lot shall be improved except with one (1) Dwelling designated to
accommodate no more than a single Family and its servants and occasional guests, plus a garage,
fencing and such other Improvements as are necessary or customarily incident to a single-Family
Dwelling. No part of the construction on any Lot shall exceed the height limitations set forth in the
applicable provisions of the Governing Documents, or any applicable governmental regulation(s). No
projections of any type shall be placed or permitted to remain above the roof of any building within the
 Properties, except one or more chimneys or vent stacks. No basketball backboard, jungle gym, play
 equipment, or other sports apparatus, whether temporary or permanent, shall be constructed, erected,
 or maintained on the Properties without the prior written approval of the ARC. The foregoing, and any
 other provision herein notwithstanding, no baskethall hoops or other sports apparatus, whether
 stationary or portable, shall be placed or permitted in the front yard, side yard, or driveway of any Unit.
 Apart from any installation by Declarant as párt' of its original construction, no patio cover, wiring, air
 conditioning fixture, water softeners or other devices shall be installed on the exterior of a Dwelling or
 allowed to protrude through the walls or roof of the Dwelling (with the exception of Items installed by
  Declarant during the original construction of the Dwelling), unless the prior written approval of the ARC
  is obtained, subject to Section 10-16. below.

                         All utility and storage areas and all laundry rooms, including all areas in which
                                                                                                      from
 - clothing or other laundry is hung to dry, must be completely covered and concealed from view
  other areas of the Properties and neighboring properties.

                         No fence or wall shall be erected or altered without prior written approval of the
                                                                                          require the prior
  ARC. All alterations or modifications of existing fences or walls of any kind shall
  written approval of the ARC.

                         Garages shall be used only for the their ordinary and normal purposes. Unless
  constructed or installed by Declarant as part of its original construction, no Owner or Resident may
  convert the garage on his or her Unit into living space or otherwise use or modify a garage so as to
  preclude regular and normal parking of vehicles therein. The foregoing notwithstanding, Declarant may
  convert a garage located in any Unit owned by Declarant into a sales office or related purposes.

                                                     - 48 -
                                                                                     99rD9Ga:3

        Section 10.16 Antennas and Satellite Dishes. No exterior radio antenna or aerial, television
antenna or aerial, microwave antennaertal or satellite dish, "C B." antenna or other antenna or aerial
of any type, which is visible from an9street or from anywhere in the Properties, shall be erected or
maintained anywhere in the Properties. Notwithstanding the foregoing, "Permitted Devices" (defined
as antennas or satellite dishes: (i) which are, one meter or less in diameter and designed to receive
direct broadcast satellite service; or (ii) which are one meter or less in diameter or diagonal
measurement and designed tó receive video programming services via multi-point distribution services)
shall be permitted, provided that such Permitted Device is

                         located in the attic, crawl space, garage, or other intenor space of the Dwelling,
or within another approved structure on the Unit, so as not to be visible from outside thé Dwelling or
other structure, or, if such location is not reasonably practicable, then,

                         located in the rear yard of the Unit (i e., the area between the plane formed by
the front facade of the Dwelling and the rear lot line) and set back from all lot lines at least eight (8)
feet; or, if such location is riot reasonably practicable, then,

                       attached to or mounted on a deck or patio and extending no higher than the
eaves of that portion of the roof of the Dwelling directly in front of such antenna; or, if such location
is not reasonably practicable, then,

                      attached to or mounted on the rear wall of the Dwelling so as to extend no higher
than the eaves of the Dwelling at a point directly above the position where attached or mounted to the
wall; provided that,

                       if an Owner reasonably determines that a Permitted Device cannot be located
in compliance with the foregoing portions of this Section 10.16 without precluding reception of an
acceptable quality signal, then the Owner may install such Permitted Device in the least conspicuous
altemative location within the Unit where an acceptable quality signal can be obtained; provided that,

 -              (f)     Permitted Devices shall be reasonably screened from view from the street or any
 other portion of the Properties, and shall be subject to Rules and Regulations adopted by the Board,
 establishing a preferred hierarchy of altemative locations, so long as the same do not unreasonably
 increase the cost of installation, or use of the Permitted Device.

         Declarant or the Association may, but are in no way obligated to, provide a master antenna or
 cable television antenna for use of all or some Owners. Declarant may grant easements for
 installation, maintenance, repair and/or replacement of any such master or cable television service.

          Section 10.17 Landscapinq. Subject to the provisions of Sections 97 and 9.8 above, each
 Owner shall install and shall thereafter maintain the 'landscaping on his Unit in a neat and attractive
 condition. No plants or seeds infected with insects or plant diseases shall be brought upon, grown or
 maintained upon any part of the Properties. The Board may adopt Rules and Regulations to regulate
 landscaping permitted and required in the Properties. If an Owner fails to install and maintain
 landscaping in conformance with the Governing Documents, or allows his landscaping to deteriorate
 to a dangerous, unsafe, unsightly, or unattractive condition, the Board shall have the right to either (a)
  after thirty (30) days' written notice, seek any remedies at law or in equity which it may have; or (b)
  after reasonable notice (unless there exists an unsafe or dangerous condition, in which case, the right
  shall be immediate, arid no notice shall be required), to correct such condition and to enter upon such
  Ownef s Unit for the purpose of so doiñg, and such Owner shall promptly reimburse the Association

                                                     - 49 -
for the cost thereof, as a Special Assessment eriforceable in the manner set forth in Article 7 above.
Each Owner shall be responsible, at his sole expense, for maintenance, repair, replacement, and
watering of any and all landscaping on the Lot, as weil as any and all sprinkler or irrigation or other
related systems or equipment pertaining to such landscaping.

       Section 10.18 Prohibited Plant Types. Without limiting the generality of any other provision
herein, the following plant types are hereby specifically declarEd to be nuisances, and shall not be
permitted anywhere within the Properties: (a) Olea europaea ("common olive"); (b) Mows alba or nigra
  mulberry"); or (o) Cynodon dactylon ("bermuda grass"). Declarant and/or HHP may, from time to time
and at any time, add or delete any plant species to the foregoing list of prohibited plants. If Declarant
or HHP adds a plant species to the foregoing list of prohibited plants, each Owner shall refrain from
planting or placing such plant species on the Properties; provided, however, that Owners shall not be
obligated to unearth landscaping existing at such time to remove such newly prohibited plant species
from the Properties.

       Section 10.19 Pattino and Vehicular Restrictions. No vehicle owned or operated by anOwner
may be kept br parked anywhere within the Properties, except within the garage ("Garage")
constructed by Declarant as part of the original construction of the Owner's Unit. Notwithstanding the
foregoing, no Person shall park, store or keep, anywhere within the Properties, any large commercial-
type vehicle (including, but not limited to, any dump truck, cement mixer truck, oil or gas truck or
delivery truck); any recreational vehicle (including, but not limited to, any camper unit, house car or
 motor home); any bus, trailer, trailer coach, camp trailer, boat, aircraft or mobile home; or any
 inoperable vehicle or any other similar vehicle; provided that camper trucks and similar vehicles up to
                                                                                                   ARC,
 and including one (1) ton, when used for everyday-type transportation, subject to approval by the
                                                                                      trailer, camper, or
 may be kept or patted within the Owner's Garage, and provided further that one
  motor home may be kept by an Owner, if wholly enclosed within the Owner's Garage. No parking of
  any vehicle shall be permitted along any curb or otherwise on any street within the Properties, except
                                                                                     therefor, subject to
  only for ordinary and reasonable guést parking, in specifically designated areas
  wies and regulations established by the Board. In addition, no Person shall park, store or keep
                                                                                                 which is
  anywhere within the Properties any vehicles or vehicular equipment, mobile or otherwise,
 deemed by the Board to be a nuisance. Garages shall be kept closed at all times, except as
 reasonably required for ingress to and egress from the interior thereof. No Person shall conduct repair
                                                                                       street abuthng the
 or restoration of any motor vehicle upon any portion of the Properties or on any
 Properties; provided that repair and/or restoration of one (1) motor vehicle shall   be permitted within
                                                                   provided further that such activity may
 an Owners Garage so long as the Garage door remains dosed;
                                                                        reasonable discretion that such
 be prohibited entirely by the Board if the Board determines in its
                                                                                restrictions shall not be
 activity constitutes a nuisance. Notwithstanding the foregoing, these                     City or County
  interpreted in such a manner as to permit any activity which would be contrary to any
  ordinance.

        Section 10.20          Garaae Window Coverines. Each Owner of a Unit with a "side-loading"
                                                                          (10) days following Close of
  Garage (with a Garage window) shall be required, by not later than ten condition) "approved" (by the
  Escrow thereof, to have installed (and thereafter to maintain in good
                                                                     time written guidelines regarding
  ARC, which may, in its soie discretion, promulgate from time to
  approved Garage window coverings)    window covering on the Garage window.

          Section 10.21            Outdoor Furniture. No furniture (including, but not necessarily limited to,
                                                                                Lot without the prior written
   lawn furniture, patio furniture, and so on) shall be placed outdoors on any
                                                                            be made by written guidelines
   approval of the ARC (which may, in the sole discretion of the ARC,
   promulgated from time to time by the     ARC pertaining to such outdoor furniture).


                                                      - 50 -
      Section 10.22          Siqht Visibility Restriction Areas. The maximum height of any and all
Improvements (including, but not necessarily limited to, landscaping), on all Sight Visibility Restriction
Areas, shall be restricted to a maxir[im height as set forth on the Plat. In the event that any
Improvement located on any Sight Visibility Restriction Area on a Lot exceeds thirty (30) inches in
height, the Association shall have the power and easement to enter upon such Lot and to bnng such
Improvement into compliance, arid the Owner shall be solely liable for the costs thereof and any and
all costs reasonably related thereto, all of which costs may be assessed against such Owner as a
Special Assessment under this Declaration.

        Section 10.23 Prohibited Direct Access. .Any other proviion herein notwithstanding, there shall
be no vehicular access from any Lot directly onto such streets as designated on the Plat, and no
vehicular access from said streets directly onto any abutting Lot, all of which direct vehicular access
is hereby prohibited

         Section 10.24 View Restnctions. Subject to the povisions of the Summerlin Declaratidn, no
vegetation, Improvement, or other obstruction shall be planted, constructed, or maintained by an
Owner on his Unit in such location or of any such height as to obstruct unreasonably the view from
any other Unit. Each Owner of a Unit shall be responsible for periodic trimming, pruning and thinning
of all hedges, shrubs and trees located on his Unit, so as not to unreasonably obstruct the view of
adjacent Owners. The Association shall be responsible for accomplishing such work on the Common
Elements. If an Owner fails to perform necessary trimming, pruning or thinning, the Association shall
have the right but not the obligation, after notice and hearing, to enter upon such Unit for purposes
of performing such work. Notwithstanding the foregoing, each Owner, by accepting a deed to his Unit,
whether or not specifically so expressed in such deed, hereby acknowledges that any construction or
 installation by Declarant may impair the view of such Owner, and hereby consents to such impairment.

           Section 10.25 No Waiver The failure of the Board tó insist in any one or more instances upon
 the strict performance of any of the terms, covenants, conditions or restnctions of this Declaration, or
 to exercise any right or option herein contained, or to serve any notice or to institute any action, shall
  not be construed as a waiver or a relinquishment for the future of such term, covenant, condition or
  restriction, but such temi, covenant, condition or restrictions shall remain in full force and effect. The
  receipt by the Board or Manager of any assessment from an Owner with knowledge of the breach of
  any covenant hereof shall not be deemed a waiver of such breach, and no waiver by the Board or its
  manager of any provision hereof shall be deemed to have beèn made unless expressed in writing and
  signed by the Board or the Manager.
                                                                                                   from the
           Section 10.26 Declarant Exemption. Units owned by Dedarant, shall be exempt
  provisions of this Article 10, until such time as Declarant conveys title to the Unit to a Purchaser, and
                                                                                              and marketing
  activities of Declarant reasonably related to Declarant's development, construction,
  efforts, shall be exempt from the provisions of this Article 10. This Article    10 may not be amended
  without Declarant's prior written consent


                                        ARTICLE 11
                      DAMAGE TO OR CONDEMNATION OF COMMON ELEMENTS
                                                                           condemnation of. all or
        Section 11.1 Damace or Destruction. Damage to, or destruction or
  any portion of the Common Elements shall be handled in the following manner.



                                                      - 51 -
                                                                                     4fl/ul.i   "i -,
                                                                                                        -'--'j



                          Repair of Damaqe. Any portion of this Community, for which insurance is
required by this Declaration or by any applicable provision of MRS Chapter 116, which is damaged or
destroyed, must be repaired or replaced promptly by the Association unless: (i) the Community is
terminated, in which case the provisions of NRS § 116.2118, 116.21183 and 116.21185 shall apply:
(ii) repair or replacement would be illegal under any state or local statute or ordinance governing health
or safety; or (iii) eighty percent (50%) of the Owners, including every Owner of a Unit that will not be
rebuilt, vote hot to rebuild. The cost of repair or replacement in excess of insurance proceeds and
reserves is a Common Expense. If the entire Community is not repaired or replaced, the proceeds
attributable to the damaged Common Elements must be used to restore the damaged area to a
condition compatible with the remainder of the Community; (A) the proceeds attributable to Units that
are not rebuilt must be distributed to the Owners of those Units; and (B) the remainder of the proceeds
must be distributed to all the Owners or lien holders, as their interests may appear, in proportion to
the liabilities of all the Units for Common Expenses. If the Owners vote not to rebuild any Unit, that
Unit's allocated, interests are automatically reallocated upon the vote as if the Unit had been
condemned, and the Association promptly shall prepare, execute and Record an amendment to this
Declaration reflecting the reallocations.

                        Damace by Owner. To the full extent permitted by law, each Owner shall be
liable to the Association for any damage to the Common Elements not fully reimbursed to the
Association by insurance proceeds, provided the damage is sustained as a result of the negligence,
willful misconduct, or unauthorized or improper installation or maintenance cf any Improvement bysaid
Owner or the Persons deriving their right and easement of use and enjoyment of the Common
Elements from said Owner, or by his respective Family and guests, both minor and adult. The
Association reserves the right, acting through the Board, after Notice and Hearing, to: (1) determine
whether any claim shall be made upon the insurance maintained by the Association; and (2) levy
against such Owner a Special Assessment equal to any deductible paid and the increase, if any, in
the insurance premiums directly attributable to the damage caused by such Owner or the Person for
whom such Owner may be responsible as desctibed above. In the case of joint ownership of a Unit,
the liability of the co-owners thereof shall be joint and several, except to any extent that the
Association has previously contracted in writing with such co-owners to the contrary. After Notice and
 Hearing, the Association may levy a Special Assessment in the amount of the cost of correcting such
 damage, to the extent not reimbursed to the Association by insurance, against any Unit owned by such
 Owner, and such Special Assessment may be enforced as provided herein.

        Section 11.2 Condemnation. If at any time, all or any portion. of the Common Elements, or
 any.interest therein, is taken for any governmental or public use, under any statute, by right of eminent
 domain or by private purchase in lieu of eminent domain, the award in condemnation shall be paid to
 the Association. Any such award payable to the Association shall be deposited in the operating fund.
 No Member shalt be entitled to participate as a party, or otherwise, in any proceedings relating to such
  condemnation. The Association shall have the exclusive right to participate in such proceedings and
  shall, in its name alone, represent the interests of all Members. Immediately upon having knowledge
  of any taking by eminent domain of Common Elements, or any portion thereof, or any threat thereof,
  the Board shall promptly notify all Owners and all Eligible Beneficiaries.

         Section 11.3 Condemnation lnvolvine a Unit. For purposes of NRS § 116.11 07(2)(a), if part
                                                                                                     in
  of a Unit is required by eminent domain, the award shall compensate the Owner for the reduction
  value of the Unit's interest in the Common Elements. The basis for such reduction shall be the extent
  to which the occupants of the Unit are impaired from enjoying the Common Elements. In cases where
  the Unit may still be used as a Dwelling, it shall be presumed that such reduction is zero (0).


                                                     - 52 -
                                              ARTICLE 12
                                              INSURANCE

        Section 12.1 Casualty Insurance. The Board shall cause to be obtained and maintained a
master policy of fire and casualty insurance with extended coverage for loss or damage to all insurable
 Improvements of the Association on the Common Elements, for the full insurance replacement cost
thereof without deduction for depreciation or coinsurance, and shall obtain insurance against such
other hazards and casualties as the Board deems reasonable and prudent. The Board, in its
reasonable judgment, may also insure any other property whether real or personal, owned by the
Association or located within the Properties, against loss or damage by fire and such other hazards
as the Association may deem reasonable and prudent, with the Association as the owner and
beneficiary of such insurance. The insurance coverage with respect to the Common Elements shall
be maintained for the benefit of the Association, the Owners, and the Eligible Beneficiaries, as their
interests may appear as named insured, subject howeverto the loss payment requirements as set forth
herein. Premiums for all insurance carried by the Association are Common Expenses included in the
Annual Assessments levied by the Association.

        The Association, acting through the Board, shall be the named insureds under policies of
insurance purchased and maintained by the Association. All insurance proceeds under any policies
shall be paid to the Board as trustee. The Board shall have full power to receive and receipt for the
proceeds and to deal therewith as deemed necessary and appropriate. Except as otherwise
specifically provided in this Declaration, the Board, acting on behalf of the Association and all Owners,
shall have the exclusive right to bind such parties with respect to all matters affecting insurance carried
by the Association, the settlement of a loss claim, and the surrender, cancellation, and modification
of all such insurance. Duplicate originals or certificates of all policies of insurance maintained by the
Association and of all the renewals thereof, together with proof of payment of premiums, shall be
delivered by the Association to all Mortgagees who have expressly requested the same in writing.

           Section 12.2 Liability and Other Insurance. The Association shall have the power and duty
to and shall obtain comprehensive public liability insurance, including medical payments and malicious
mischief, in such limits as it shall deem desirable (but in no event less than $3,000,000.00 covering
all claims for bodily injury and property damage arising out of a single occurrence), insuring the
Association, Board, Directors, Officers, Declarant, and Manager, and their respective agents and
 employees, and the Owners and Residents of Units and their respective Families, guests and invitees,
 against liability for bodily injury, death and property damage arising from the activities of the Asso-
 ciation or with respect to property maintained or required to be maintained by the Association including,
 if obtainable, a cross-liability endorsement insuring each insured against liability to each other insured.
   Such insurance shall also include coverage, to the extent reasonably available, against water damage
liability, liability for non-owned and hired automobiles, liability for property of others, and any other
  liability or risk customarily covered with respect to projects similar in construction, location, and use.
  The Association may also obtain, through the Board, Workers Compensation insurance (which shall
  be required if the Association has one or.rnore employees) and other liability insurance as it may deem
  reasonable and prudent, insuring each Owner and the Association, Board, and any Manager, from
  liability in connection with the Common Elements, the premiums for which are a Common Expense
   included in the Annual Assessment levied against the Owners. All insurance policies shall be reviewed
   at least annually by the Board and the limits increased in its reasonable business judgment.

          Section 12.3 Fidelity Insurance. The Board shall further cause to be obtained and maintained
                                                                         and such other insurance as it
  errors and omissions insurance, blanket fidelity insurance coverage
  deems prudent, insuring the Board,   the Directors, and Officers, and any Manager against any liability


                                                     - 53 -
for any act or omission in carrying out their respective obligations hereunder, or resulting from their
membership on the Board or on any committee thereof, in the amount of not less than $1 000,000.00.
Said policy or policies of insurance shall also contain an extended reportìng period endorsement (a
tail) for a six-year period. The Association shall require that the Manager maintain fidelity insurance
coverage which names the Association as an obligee, in such amount as the Board deems prudent.
From such time as Declarant no longer has the power to control the Board, as set forth in Section
3.7(c) above, blanket fidelity insurancE coverage which names the Association as an obligee shall be
obtained by or on behalf of the Association for any Person handling funds of the Association, including
but not limited to, Officers, Directors, trustees, employees, and agents of the Association, whether or
 not such Persons are compensated for their services, in such an amount as the Board deems prudent;
 provided that in no event may the aggregate amount of such bonds be less than the maximum amount
 of Association Funds that will be in the custody of the Association or Manager at any time while the
policy is in force (but in no event less than the sum equal to one-fourth (1/4) of the Annual
Assessments on all Units, plus Reserve Funds).

        Section 12.4 Other Insurance Provisions. The Board shall also obtain such other insurances
customarily required with respect to projects similar in construction, location, and use, or as the Board
may deem reasonable and prudent from time to time, including, but not necessarily limited to, Workers
Compensation insurance (which shall be required if the Association has any employees). All premiums
for insurances obtained and maintained by the Association are a Common Expense included in the
Annual Assessment levied upon the Owners. All insurance policies shall be reviewed at least annually
by the Board and the limits increased in its sound business judgment In addition, the Association shall
continuously maintain in effect such casualty, flood, añd liability insurance and fidelity insurance
 coverage necessary to meet the requirements for similar developments, as set forth or modified from
time to time by any governmental body with jurisdiction.

        Section 12.5 Insurance Oblieations of Owners. Each Owner is required, at Close of Escrow
 on his Unit, at his sole expense to have obtained, and to have furnished his Mortgagee (or, ¡n the
 event of a cash transaction involving no Mortgagee, then to the Board) with duplicate copies of, a
 homeowners policy of fire and casualty insurance with extended coverage for loss or damage to all
 insurable improvements and fixtures originally instailed by Declarant on such Owners Unit in
 accordance with the original plans and specifications, or installed by the Owner on the Unit, for the full
 insurance replacement cost thereof without deduction for depreciation or coinsurance. By acceptance
 of the deed to his Unit, each Owner agrees io maintain in full force and effect at all times, at said
 Owner's sole expense, such homeowner's insurance policy, and shall provide the Board with duplicate
  copies of such insurance policy upon the Board's request Nothing herein shall preclude any Owner
 from carrying any public liability insurance as he deems desirable to cover his individual liability,
 damage to person or property occurring inside his Unit or elsewhere upon the Properties. Such policies
 shall not adversely affect or diminish any liability under any insurance obtained by or on behalf of the
 Association, and duplicate copies of such other policies shall be deposited with the Board upon
 request. If any loss intended to be covered by insurance carried by or on behalf of the Association
 shall occur and the proceeds payable thereunder shall be reduced by reason of insurance carded by
  any Owner, such Owner shall assign the proceeds of such insurance carried by him to the Association,
  ta the extent of such reduction, for application by the Board to the same purposes as the reduced
  proceeds are to be applied. Notwithstanding the foregoing, or any other provision herein, each Owner
  shall be solely responsible for full payment of any and all deductible amounts under such Owners
  policy or policies of insurance.

         Section 12.6 Waiver of Subroqation. All policies of physical damage insurance maintained
  by the Association shall provide, if reasonably possible, for waiver of: (1) any defense based on

                                                     -54-
 coinsurance; (2) any right of set-off, counterclaìm, apportionment, proration or contribution by reason
 of other insurance not canied by theAssociation; (3) any invalidity, other adverse effect or defense
-on account of any breach of warranty dicondition caused by the Association, any Owner or any tenant
 of any Owner, or arising from any act, neglect, or omission of any named insured or the respective
 agents, contractors and employees of any insured; (4) any rights of the insurer to repair, rebuild or
 replace, and, in the event any Improvement is not repaired, rebuilt or replaced following loss, any right
 to pay under the insurance an amount less than the replacement value ofthe Improvements insured;
 or (5) notice f the assignment of any Owner of its interest in the insurance by virtue of a conveyance
 of any Unit. The Association hereby waives and releases all claims against the Board, the Owners,
 Declarant, and Manager, and the agents and employees of each of the foregoing, with respect to any
 loss covered by such insurance, whether or not caused by negligence of or breach of any agreement
 by such Persòns, but only to the extent that insurance proceeds are received in compensation for such
 loss; provided, however, that such waiver shall not be effective as to any loss covered by a policy of
 insurance which would be voided or impaired thereby.

        Section 12.7 Notice of Expiration Requirements. If available, each of the policies of insurance
 maintained by the Association shall contain a provision that said policy shall not be canceled,
terminated, materially modified or allowed to expire by its terms, without thirty (30) days' prior written
 notice to the Board and Declarant and to each Owner and each Beneficiary, insurer, and/or guarantor
 of a first Mortgage who has filed a written request with 'the carrier for such notice, and every other
 Person in interest who requests such notice of the insurer. All insurance poflcies carried by the
 Association pursuant to this Article 12, to the extent reasonably available, must provide that (a) each
 Owner is an insured under the policy with respect to liability arising out of his interest in the Common
 Elements or Membership; (b) the insurer waives the right to subrogation under the policy against any
 Owner or member of his Family; (c) no act or omission by any Owner or member of his Family will void
 the policy or be a condition to recovery under the policy; and (d) if, at the time of a loss under the
 policy there is other insurance in the name of the Owner covering the same risk covered by the policy,
 the Association's policy provides primary insurance.


                                          ARTiCLE 13
                                  MORTGAGEE PROTECTIO11CLAUSE

        In order to induce any Mortgagee to participate in the financing of the sale, of Units within the
 Properties, the following provisions are added.hereto (and to the extent these added provisions conflict
 with any other provisions of the Declaration, these added provisions shall control):

                          Each Beneficiary, insurer, and/or guarantor of a first Mortgage encumbering any
  Unit, upon filing with the Board a written request for notification ("Eligible Beneficiary"), is entitled to
  written notification from the Association of any default by the Mortgagor of such Unit in the
  performance of such Mortgagor's obligations under this Declaration, the Articles, or the Bylaws, which
  default is not cured within thirty (30) days after the Association learns of such default. For purposes
                                                                                             Mortgages or
  of this Declaration. "first Mortgage" shall mean a Mortgage with first priority over other
  Deeds of Trust on a Unit, and first     Mortgagee" shall mean the Beneficiary of a first Mortgage.

                          Each Owner, including every first Mortgagee of a Mortgage encumbering any Unit
  which obtains title to such Unit pursuant to the remedies provided in such Mortgage, or by foreclosure
                                                                                               "right of
   of such Mortgage, or by deed or assignment in lieu of foreclosure, shall be exempt from any
   first refusal" created or purported to be created by the Governing Documents.


                                                       - 55 -
               (t)      Except as provided in NRS § 116.3116(2), each Beneficiary of a first Mortgage
encumbering any Unit which obtains title to such Unit or by foreclosure of such Mortgage, shall take
title to such Unit free and clear of any claims of unpaid assessments or charges against such Unit
which accrued prior to the acquisition of title to such Unit by the Mortgagee.

               (d)     Unless at least sixty-seven percent (67%) of first Mortgagees (based upon one
(1) vote for each first Mortgage owned) or sixty-seven percent (67%) of the Owners (other than
Declarant) have given their prior written approval, neither the Association nor the Owners shall:

                                     sub]ectto Nevada nonprofit corporation law to the contrary, by act
or omission seek to abandon, partition, alienate, subdivide, release, hypothecate, encumber, sell or
transfer the Common Elements and the Improvements thereon which are owned by the Association;
provided that the granting of easements for public utilities or for other public purposes consistent with
the intended use of such property by the Association as provided in this Declaration shall not be
deemed a transfer within the meaning of this clause.

                                    change the method of determining the obligations, assessments,
dues or other charges which may be levied against an Owner, or the method of allocating distributions
of hazard insurance proceeds or condemnation awards;

                                      by act or omission change, waive or abandon any scheme of
 regulations, or enforcement thereof, pertaining to the architectural design of the exteriorappearance
 of the Dwellings and other Improvements on the Units, the maintenance of the exterior walls or
 common fences and driveways, or the upkeep of lawns and plantings in the Properties;

                                       fail to maintain Fire and Extended Coverage on insurable Common
 Elements on a current replacement cost basis in an amount as near as possible to one hundred
 percent (100%) of the insurance value (based on curent replacement cost);

                             (y)       except as provided by any provision of NRS Chapter 116
 applicable hereto, use hazard insurance proceeds for losses to any Common Elements property for
 other than the repair, replacement or reconstruction of such property; or

                           (vi)       ¡mend those provisions of this Declaration or the Articles or
 Bylaws which provide for rights or remedies of fIrst Mortgagees.

                        Beneficiaries, insurers, and/orguarantors offirst Mortgages, upon express written
  request in each case therefor, shall have the right to:! (1) examine the books and records of the
  Association during normal business hours, (2) require from the Association the submission of an
  annual audited financial statement (without expense to the Beneficiary, insurer, or guarantor requesting
  such statement) and other financial data, (3) receive written notice of all meetings of the Members, and
  (4) designate in writing arepresentative to attend all such meetings.

                         All Beneficiaries, insurers, and guarantors of first Mortgages, who have filed a
  written request for such notice with the Board, shall be given thirty (30) days' written notice prior to:
  (1) any abandonment or termination of the Association; (2) the effective date of any proposed, material
  amendment to this Declaration or the Articles or Bylaws; and (3) the effective date of any termination
  of any agreement for professional management of the Properties following a decision of the Owners
  to assume self-management of the Properties. Such first Mortgagees shall be given immediate notice:
                                                                                                      Ten
   (i) following any damage to the Common Elements whenever the cost of reconstruction exceeds

                                                    - 56 -
Thousand Dollars ($10,000.00); arid (ii) when the Board learns of any threatened condemnation
proceeding or proposed acquisition of any portion of the Properties.

                        First Mortgagees may, jointly or singly, pay taxes or other charges which are in
default and which may or have become a charge against any Common Elements property and may
pay any overdue premiums on hazard insurance policies, or secure new hazard insurance coverage
on the lapse of a policy, for Common Elements property, and first Mortgagees making such payments
shall be owed immediate reimbursement therefor from the Association.

                        The Reserve Fund descnbed n Article 6 of this Declaration must be funded by
regular scheduled mnthly, quarterly, seriiannual dr annual payments rather than by large
extraordinary assessments.

               (i).     The Board shall require that any Manager, and any employee or agent thereof,
maintain at all times fidelity bond coverage which name the Association as an obligee; and, from such
time as Declarant no longer has the power to appoint or remove a majority of the Directors, as set
forth-in Section 3.7(c) above, the Board shall secure ànd cause to be maintained in force at all times
fidelity bond coverage which names the Association asan obligee for any Person handling funds of
the Association.

               (j)     When professional management has been previously required by a Beneficiary.
insurer, or guarantor of a first Mortgage, any decision to establish self-management by the Association
shall require the approval of at least sixty-seven percent (67%) of the voting power of the Association
and of the Board respectively, and the Eligible Beneficiaries of at least fifty-orie percent (51%) of first
Mortgages of Units in the Properties.

      In addition to the foregoing, the Board of Directors may entér into such contracts or agreements
on behalf of the Association as are required in order to satisfy the requirements of Mortgagees, so as
to allow for the purchase, insurance or guaranty, as the case may be, by such entities of first
 Mortgages encumbering Units. Each Owner hreby agrees that it will benefit the Association and the
 Membership, as a class of potential Mortgage borrowers and potential sellers of their Units, if such
 agencie approve the Properties as a qualifying subdivision under their respective policies, rules and
 regulations, as adopted from time to time. Mortgägees are hereby authonzed to furnish information to
 the Board concerning the status of any Mortgage encumbering a Unit.                                -




                                          ARTICLE 14
                                  DECLARANT'S RESERVED RIGHTS

         Section 14 1 Declarant's Reserved Riqhts. Any other provision herein notwithstanding,
 pursuant to NRS § 116.2105(1 )(h), Declarant reserves the following developmental rights and other
 special Declarant's rights, on the terms and conditions and subject to the expiration deadlines, if any,
 set forth below:

                  (a)  Riqht to Complete improvements and Construction Easement. Dectarant
  reserves, for a period terminating on the fifteenth (15th) anniversary of the Recordation of this
  Declaration, the right, in Declarant's sole discretion, to complete the construction of the Improvements
  on the Properties and an easement over the Properties for such purpose; provided, however, that if
  Declararit still owns any property in the Properties ori such fifteenth (15th) anniversary date, then such
  rights and reservations shall continue for one additional successive period of ten (10) years thereafter.


                                                     - 57 -
                                                                                       Cfl?fl




                        Exercise of Developmental Rlqhts. Pursuant to NRS Chapter 116, Declarant
reserves the right to annex all or portions of the Annexable Area to the Community, pursuant to the
provisions of Article 15 hereof, for as long as Declarant owns any portion of the Annexable Area. No
assurañces are made by Declarant with regard to the boundaries of those portions of the Properties
which may be annexed or the order in which such portions may be annexed. Declarant also reserves
the right to withdraw real property from the Community.

                       Offices, Model Homes and Promotional Siqns. Declarant reserves the right to
maintain signs, sales and management offices, and models in any Unit owned or leased by Declarant
in the Properties, and signs anywhere on the Common Elements, for the period set forth in Section
14.1(a), abçve.

                     Appointment and Removal of Directors. Declarant reserves the right to appoint
and remove a majority of the Board as set forth in Section 3.7 hereof, for the period set forth therein,

                       Desiqnation of Neighborhoods and Neichborhood Common Areas Declarant
reserves the right to designate Neighborhoods and Neighborhood Common Areas, as set forth in
Article 18, below, until the later of such time as Declarant no longer owns any property in the
Properties, or no longer has the power to exercise any developmental right pursuant to this
Declaration.

                        SuDplemental Declarations. Declarant reserves the right to Record (or to cause
to be subject to prior written approval of Declarant, in its sole discretion), all Supplemental Declarations
from time to time, as set forth in detail in Article 19, below, until the later of such time as Declarant no
longer owns any property in the Properties, or no longer has the power to exercise any developmental
right pursuant to this Declaration.

                        Amendments. Declarant reserves the right to amend this Declaration from Urne
to time, as set forth in detail in Section 20.5, below, during the Urne periods set forth therein.

                        Easemènts. Declarant reserves the easements reserved by Declarant in this
Declaration (including, but not limited to, the easements for benefit of the Country Club as set forth in
detail in Article 17 below).

                 fi)      Other Riqhts. Declarant reserves all other rights, powers, arid authority of
 Declarant set forth in this Declaration, and, to the extent not expressly prohibited by NRS Chapter 116,
 further reserves all other rights, powers, and authority of a declarant under NRS Chapter 116

       Section 14.2 Exemption of Declarant.           Notwithstanding anything to the contrary in this
 Declaration, the following shall apply:

                         Nothing in this Declaration shall limit, and no Owner or the Association shall do
 anything to interfere with, the right of Declarant to complete excavation and grading and the
 construction of Improvements to and on any portion of the Properties, or to alter the foregoing and
 Declarant's construction plans and designs, orto construct such additional Improvements as Declarant
 deems advisable in the course of development of the Properties, for so long as any Unit owneØ by
 Declarant remains unsold.

                       This Déclaration shall, in no way limit the right of Declarant to grant additional
  licenses, easements, reservations and rights-of-way to itself, to governmental or public authorities

                                                     - 58 -
(including without limitation public utility companies), or to others, as from time to time may be
reasonably necessary to the proper development and disposal of Units.

               (c)  Prospective -purchasers and Declarant shall have the nght to use all and any
portion of the Common Elements for access to the sales facilities of Declarantand for placement of
Declarant's signs.

                  Cd)    Declarant may use any structures owned or leased by Declarant, as model home
complexes or real estate sales or management offices, subject to the time limitations set forth herein,
after which time, Declarant shall restore the Improvement to the condition necessary for the issuance
of a final certificate of occupancy by the appropriate govemmental entity. Any garages which have
converted into sales offices by Declarant shall be converted back to garages at the time of sale of such
Unit to a Purchaser.

                        All or any portion of the rights of Declarant n this Declaration may be assigned
by Declarant to any successor in interest, by an express and written Recorded assignment which
specifies the rights of Declarant so assigned.

                       The prior written approval (which shall not be unreasonably withheld) of
Declarant,;as developer of the Properties, shall be required before, any amendment to the Declaration
affecting Dectarant's rights or interests (including, without limitation, this Article 14) can be effective.

                       The nghts and reservations of Declarant referred to herein, if not earlier
terminated pursuant to the Declaration, shall terminate on the date set forth in Section 14.1(a) above.

      Section 14.3 Reservation of Certain Oil and Mineral Rights. Declarant further expressly
reserves in perpetuity (or for the maximum period allowed under applicable law) any and all oil,
mineral, gas and other hydrocarbon substances below a depth of 500 feet under the Properties (and
all portions- thereof), without the nght of surface entry, not otherwise specifically reserved by and to
the United States of America and/or the State of Nevada by virtue of those certain land patents issued
by the Bureau of Land Management on, respectively, January 27, 1953 as Patent No. 1137526,
February 23, 1956 as Patent No. 1157470 and September29, 1988 as Patent No. 27-88-0020.


                                                ARTICLE 15
                                               ANNEXATION

        Section 15 1 Annexation of Property. Declarant may, but shall not be required to, at any time
 or from time to -time, add to the Properties covered by this Declaration all or any portions of the
 property described in Exhibit "B" hereto ("Annexable Area") then owned by Declarant, by Recording
 an annexation amendment ("Annexation Amendment") with respect to the real property to be annexed
 ("Annexed Property").

         Upon the recording of an Annexation Amendment covenng any portion of the Annexable Area
 and containing the provisions set forth herein, the covenants, conditions and restrictions contained in
 this Declaration shall apply to the Annexed Property in the same manner as if the Annexed Property
 were originally covered in this Declaration and originally constituted a portion of the Original Property:
 and thereafter, the rights, privileges, duties and liabilities of the parties to this Declaration with respect
 to the Annexed Property shall be the same as with respect to the Original Property arid the rights,
  obligations, privileges, duties and liabilities of the Owners and occupants of Units within the Annexed

                                                      - 59 -
                                                                                    ,gnrr'
                                                                                  Z.L4;Jjj4 r, i
                                                                                  jjj4.tJ,J-

Property shall be the same as those of the Owners and occupants of Units originally affected by this
Declaration. By acceptance of a deed from Declarant conveying any real property located in the
Annexable Area (Exhibit "B" hereto), in the eventsuch real property has not theretofore been annexed
to the Properties encumbered by this Declaration, and whether or not so expressed in such deed, the
grantee thereof covenants that Declarant shalt be fully empowered and entitled (but not obligated) at
any time thereafter (and appoints Declarant as attorney in fact, in accordance with MRS § 111.450
and 111 460; of such grantee and his successors and assigns) to unilaterally execute and Record an
Annexation Amendment, annexing said real property to the Community, in the manner provided for in
this Article 15.

       Section 15.2 Annexation Amendment. Each Annexation Amendment shalt conform to the
requirements of NRS § 116.2110, and shall include:

                      the written and acknowledged consent of Dedarant;

                      a reference to this Declaration, which reference shall state the date of
Recordation hereof and the County, book and instrument number, and any other relevant Recording
data;

                       a statement that the provisions of this Declaration shall apply to the Annexed
Property as set forth therein;

                       a sufficient description of the Annexed Property; and

                       assignment of an Identifying Number to each new Unit created;

                       a reallocation of the allocated interests among all Units; and

                       a description of any Common Elements created by the annexation of the
Annexed Property.

        Section 15.3 Approval of HHP. In the event, and for so long as, expressly required by the
 Summerlin Declaration, then a further condition to annexation of such portion of the Annexable Area
 shall be the written consent of HHP.

        Section 15.4 Disclaimers Regardina Annxation. Portions of the Annexable Area may or may
 not be annexed, and if annexed, may be annexed at any time by Declarant, and no assurances are
 made with respect to the boundaries or sequence of annexation of such portions. Annexation of a
 portion of the Annexable Area shall not necessitate annexation of any other portion of the remainder
 of the Annexable Area. Declarant has no obligation to annex the Annexable Area, or any portion
 thereof.

         Section 15.5 Expansion of Annexable Area. lii addition to the provisions for annexation
 specified in Section 15.2 above, the Annexable Area may, from time to time, be expanded to include
 additional real property, not as yet identified. Such property may be annexed to the Annexable Area
 upon the Recordation of a written instrument describing such real property, executed by Declarant and
 any other owner of such property.

          Section 15.6 Contraction of Annexable Area. So long as real property has not been annexed
  to the Properties subject to this Declaration, the Annexable Area may be contracted to delete such real
property effective upon the Recordation of a written instrument describing such real property, executed
by Declarant and all other owners, if any, of such real property, and declaring that such real property
shall thereafter be deleted from the A$bexable Area. Such real property may be deleted from the
Annexable Area without a vote of the Association or the approval or consent of any other Person,
except as provided herein.


                                      ARTICLE 16
                  ADDITIONAL DISCLOSURES. DISCLAIMERS. AND RELEASES

       Section 16 1 Countrv Club Disclosures and Disclaimers. By acceptance of a deed to a Lot,
each Owner (for purposes of this Article 16, the term "Owner" shall include the Owner, and the
Owner's Family, guests and tenants), shall conclusively be deemed to understand, and to have
acknowledged and agreed to, all of the following disclosures and disclaimers. The Units and Common
Elements include absolutely rio right, title, or interest in or to (or membership in, use of, or access to)
the Country Club. The Country -Club (which also is or may be known and marketed as "Red Rock
-Country Club") consists of Golf Courses (including golf courses and their playing elements,
Maintenance Facility, and other related facilities and features, which may include driving range and
related features) and "Other Country Club Facilities" (including, but not necessanly limited to, Club
House (with locker rooms, pro shop, dining facilities, and related facilities) and Sports Club (with
                                                                                                         and
exercise and related facilities), Tennis Courts, swimming pool and spa facilities, food pavilions,
related facilities, as the same are subject to change         in the sole discretion of the Country Club's
management). The Country Club is NOT A PART OF the Properties, and NOT A PART OF the
Community, and IS NOT a Conimon Element Country Club ownership, membership, use, and access,
                                                                                Membership in the Country
are separate from, and notincluded- in, the Properties and/or Community
                                                                                          Committee (which
Club, and use of its facilities, is subject to approval of the Country Club Membership
is -a body separate from and not in any way related to the Association or Board) and subject further
to payment of separate Country Club initiation fees, Country Club dues, and other charges as
 determined from time to time by the Country Club in its sole discretion. If an Owner is interested in
                                                                                           Club Membership
 membership in the Country Club, the Owner must independently contact the Country
                                                                                           Owner will or may
 Committee. No representation whatsoever is made with regard to whether or not an
 qualify for membership in or use of the Country Club or any of its facilities.       Additional disclaimers
                                                                              set forth below.
 regarding Golf Courses, Maintenance Facility, and certain other matters, are
                                                                               employees, suppliers,
 Notwithstanding the foregoing, the owners, members, guests, invitees, agents,
                                                                       to, enjoyment of, añd ingress
 and contractors of the Country Club shall have an easement of access
                                                                     Elements of the Community, as
 and egress over, the Private Streets and entiles and other Common
 described in further detail in Article 17, below.
                                                                       Disclaimers. Without limiting
         Section 16.2 Golf Course & Maintenance Facility Disclosures &
                                                                                       of this Article 16, the
  Section 16.1 above, by acceptance of a deed to a Lot, each Owner (for purposes
                                                            Family, guests and tenants), shall conclusively
  term "Owner" shall include the Owner, and the Owner's
                                                            and agreed to, all of the following disclosures
   be deemed to understand, and to have acknowledged
   and disclaimers:

                   (a)    The Community is located adlacenttO or nearby the Country Club, including the
                                                                                     (a) the water facilities,
   Golf Courses and Maintenance Facility. In connection with the Golf Courses:
                                                                  be an attractive nuisance to children; (b)
   hazards, other installations located on the Golf Courses may
                                                                         result in a certain loss of privacy,
   operation, maintenance, and use, of each of the Golf Courses may
                                                                       not necessarily limited to) all or any
   and will entail various operations and applications, including (but
                                                       of golfers on the Golf Courses ("Golfers") to enter
    one or more of the following: (1) the limited riht
                                                                                      O.cr2P     flr2
                                                                                      i/J..'.í .'.sL.


upon the Community to retrieve errant golf balls; (2) the right of Golfers, on foot or on golf carts, to
enter upon and traverse easements over the Community in connection with golf play on the Golf
Courses; (3) the right of owner(s) and operator(s) of the Golf Courses, and their employees, agents,
suppliers, and contractors, to (i) enter upon and travel over the Community to and from and between
any one or more of the Community entry areas, the Golf Courses, and other portions of the Country
Club, and (ii) enter upon the Community to maintain, repair, and replace, water and irrigation lines and
pipes used in connection with Golf Course landscaping; (4) òperation and use of noisy electric,
gasoline, and other power.driveñ vehicles and equipment, on various days of the week, including
weekends, and during various times cf the day, including, without limitation, early morning and late
evening hours; (5) operation of sprinkler and other irrigation systems during the day and night;
(6) storage, transportation, and application of insecticides, pesticides, herbicides, fertilizers, and other
supplies and chemical substances (all, collectively, "chemical substances"); (7) parking and/or storage
of vehicles, equipment, chemical substances, and other items, (8) irrigation of the Golf Courses, and
supply of water facilities thereon, with recycled or effluent water (9) "overspray" of recycled or effluent
water and chemicals onto the Community; and/or (10) Golfers from time to time may. shout and use
language, particularly in and around tee and green areas of the Golf Courses, which may be distinctly
audible to persons in the Community, and which language may be profane or otherwise offensive in
tone and content; (c) play on the Golf Courses may be allowed by the owner(s) or operator(s) thereof
during all daylight and/or evening hours, up to and includingseven days a week; (d) play on.the Golf
 Courses may result in damage to the Community as a result of golf balls or other items leaving the
 Golf Courses, including, without limitation, damage to windows, doors, stucco, roof tiles, sky lights, and
 other areas of the Unit and other portions of the Community, and damage to real and personal
 property of An Owner or others, whether outdoors or within a residence or other building, and injury
 to person; and (e) although fencing and other features may (but need not necessarily) be incorporated
 into the Unit or other portions of the Community in an effort to decrease the hazards associated with
 golf balls entering the Community from the Golf Courses, the Owner acknowledges that such fencing
 and other features may protect against some, but certainly not all, golf balls which enter the
 Community from the Golf Courses.

                 (b)     The Maintenènce Facility consists of one or more separate large maintenance
 and/or warehouse-type building(s), storage area(s) for vehicles, equipment, and chemical substances
 (as defined above), fuel storage and above-ground fuel island(s), and related facilities (all, collectively,
 "Maintenance Facility"), constructed and operated by the owner(s) or operator(s) of the Maintenance
 Facility, at a location on or adjacent to the Community but not contiguous to other portions of the
 Country Club. The location of the Maintenance Facility will require frequent and recurring travel by
 Maintenance Facilityand other Country Club personnel, and vehicles (and travel by and transportation
 of other personnel, equipment, chemicals, fuel, and other items) over Private. Streets and other
 Common Elements of the Community tó and from the Maintenance Facility and other portions of the
 Country Club and Community entry areas. In connection with the Maintenance Facility: (a) the facilities
 and related items located on the Maintenance Facility may be an attractive nuisance to children;
 (b) operation, maintenance, and use, of the Maintenance Facility may result in a certain loss of privacy,
                                                                                     limited to) all or any
 and will entail various operations and applications, including (but not necessarily
 one or more of the following: (1) the right of owner(s) and operator(s) of the Maintenance Facility, and
 their employees, agents, suppliers, and contractors, to enter upon and travel over the Community to
 and from and between any one or more of the Community entry areas, the Maintenance Facility, and
  other portions of the Country Club; (2) operation, maintenance, and repair of noisy electric, gasoline,
  and other power driven vehicles and equipment on various days of the week, including weekends, and
  during various times of the day, including, without limitation, early moming and late evening hours; (3)
  storage, transportation, and application, of chemical substances; (4) parking and/or storage of vehicles,
  equipment, chemical substances, fuel, and other items; and (5) fueling and related operations; and


                                                      - 62 -
(c) although walls, fencing, and other features may be incorporated into the Maintenance Facility, the
Owner acknowledges that such walls, fencing, and other features will certainly not eliminate all sight,
noise, or other conditions, on or ernáñating from the Maintenance Facility.

               (C)    All and any one or more of the matters descnbed above may cause
inconvenience and disturbance to the Owner, and other occupants of and visitors to the Unit and/or
Common Elements, and possible injury to person and damage to property, and the Owner has
carefully considered the foregoing matters, and the location of the Community (including the Common
Elements and the Unit) and their proximity to the playing elements of the Golf Courses and to the
Maintenance Facility, before making the decision to purchase a Unit in the Properties.

        Section 16 3 Disclosures. Disclaimers, and Releases of Certain Other Matters. Without limiting
any other provision in this Declaration, by acceptance of a deed to a Lot, each Owner (for purposes
of this Article 16, the term "Owner' shall include the Owner, and the Owner's Family, guests and
tenants), shall conclusively be deemed to understand, and to have acknowledged and agreed to, all
of the following.

                    that there is and/or will be a Nevada Power Company substation located on or
adjacent to the Community (which term, as used throughout this Article 16, shall include all Units and
Common Elements), and there are presently and may be further major electrical power system
components (high voltage transmission or distribution lines, transformers, etc.) from time to time
located within or nearby the Community. which generate certain electric and magnetic fields ("EMF")
around them; that, without limiting any other provision in this Declaration, Declarant specifically
disclaims any and all representations or warranties, express and implied, with regard to or pertaining
to EMF; and that Owner hereby releases Declarant from any and aH claims arising from or relating to
said EMF, including, but not necessarily limited to, any claims for nuisance or health hazards; and

                       that the Community is or may be located within or nearby certain airplane flight
patterns, and/or subject to significant levels of airplane traffic and noise, that Declarant hereby
specifically disclaims any and all representations or warranties, express and implied, with regard to
or pertaining to airplane flight patterns, and/or airplane noise; and that Owner hereby releases
Declarant from any and all claims arising from of relating to airplane flight patterns or airplane noise;
and        -


                       that the Community is or may be located adjacent to or nearby the Las Vegas
 Beltway and other major roadways, and subjectto levels of traffic thereon and noise, dust, and other
 nuisance from such roadways and vehicles; that Declarant hereby specifically disclaims any and all
 representations or warranties, express and implied, with regard to or pertaining to roads and/or noise.
 dust, and other nuisance therefrom; and that Owner hereby releases Declarant from any and all claims
 arising therefrom or relating thereto, and

                         that there is and/ar will be a Las Vegas Valley Water Distnct water reservoir site
 located on or adjacent to the Community, and the Community is located adjacent to or nearby the Red
 Rock Flood Channel, a major water and drainage channel, certain major washes, and a major water
 detention bésin (all, collectively. "Channel"). the ownership, use, regulation, operation, maintenance,
 improvement and repair of which are not within Declarant's control, and over which Déclarant has no
 jurisdiction or autháiity, and, in connection therewith: (1) the Channel may be an attractive nuisance
  to children; (2) maintenance and use of the Channel may involve various operations and applications,
  including (but not necessarily limited to) noisy electric, gasoline or other power driven vehicles and/or
 equipment used by Channel maintenance and repair personnel during various times of the day,

                                                    - 63 -
                                                                                       JLL,/.


including, without limitation, early morning and/or late evening hours; and (3) the possibility of damage
to Improvements and property on the Properties, particularly in the event of overflow of water or other
substances from or related to the Channel, as the result of nonfunction, malfunction, or overtaxing of
the Channel or any other reason; and (4) any or all of the foregoing may cause inconvenience and
disturbance to Owner and other persons in or near the Unit and/or Common Elements, and possible
injury to person and/or damage to property; and that Owner hereby releases Declarant frôm any and
all claims arising therefrom-or relating thereto; arid

                    that the Community is located adjacent to or nearby the Red Rock Canyon
National Conservation Area CConservancy"), and, in connection therewith: (a) thé Conservancy is
home to various species of undomesticated creatures (including, but not limited to, coyotes and foxes),
which may from time to time stray onto the Community, and which may otherwise pose a nuisance or
hazard; (b) a gun range and/or shooting facilities         Range") are located within or nearby the
Conservancy; ownership, use, regulation, operation, and maintenance of the Range are not within
Declarant's control, and Declarant has no jurisdiction or authority with regard to the same; and the
Range may be an attractive nuisance to children, and operation of the Range may result in a certain
level of hazard and/or noise; and that Owner hereby releases Declarant from any and all daims arising
therefrom or relating thereto; and

                      that construction or installation of Improvements by Declarant, other Owners, or
third parties, may impair or eliminate the view, if any, of or from any Unit and/or Common Elements;
and that Owner hereby releases Dedarant frS any and all claims arising from or relating to said
impaimlent or elimination; and

                         that residential subdivision and home construction is an industry inherently
 subject to variations and imperfections, and items which do not materially affect safety or structural
 integrity shall be deemed "expected minor flaw? (including, but not limited to: reasonable wear, tear
 or deterioration; shrinkage, swelling, expansion or settlement squeaking, peeling, chipping, cracking,
 or fading; touch-up painting; minor flaws or corrective work; and like items) and not constructional
 defects; and

                        that: (1) the finished construction of the Unit and the Common Elements, while
 within the standards of the industry in the Las Vegas Valley, Clark County, Nevada, and while in
 substantial compliance with the plans and specifications, will be subject to expected minor flaws; and
 (2) issuance of a Certificate of Occupancy by the relevant governmental authority with jurisdiction shaH
 be deemed conclusive evidence that the relevant Improvement has been built within such industry
 standards; and

                        that indoor air quality of the Unit and/or Common Elements may be affected, in
 a manner and to a degree found in new construction within industry standards, by particulates or
 volatiles emanating or evaporating from new carpeting or other building materials, fresh paint or other
 sealants or finishes, and so on; and

             -   (J)     that installation and maintenance of a gated Community. entry gate guard house,
  or any security device, operation, or method, shall not create any presumption, or duty whatsoever of
  Declarant or the Association (or their respective officers, directors, managers, employees, agents,
  and/or contractors), with regard to security or protection of person or propertywithin or adjacent to the
  Community; and




                                                    -64-
                                                                                        UJ'7.


               (k)    that Purchaser acknowledges having received from Declarant information
regarding the zoning designations andJJe designations in the master plan regarding land use, adopted
pursuant to NRS Chapter 278, for thé àrcels of land adjoining the Properties to the north, south, east,
and west, together with a copy of the most recent gaming enterprise district map made available for
public inspection by the jurisdiction in which the Unit is located, and related disclosures. Declarant
makes no further representation, and no warranty (express or implied), with regard to any matters
pertaining to adjoining land or uses thereof orto any gaming uses; Purchaser is hereby advised that
the master plan and zoning ordinances, and gaming enterprise districts, are subject to change from
time to time, If additional or more current information cónceming such matters is desired, Purchaser
should contact the appropriate governmental planning department. Each Purchaser acknowledges and
agrees that its decision to purchase -a Unit is based solely upon Purchaser'.s own investigation, and
not upon any information provided by any sales agent; and

             (I)    that Declarant did not author any Summerlin Community Declaration, and
Declarant does not control J-IHP or any of the Summerlin Community Associations, which are
independent and unrelated legal entities. Accordingly, Dedarant has no responsibility, obligation, or
liability whatsoever to the Association or any Owner for (1) any Summerlin Community Declaration,
or the provisions or enforcement thereof, (2) the actions or omissions of HHP or any Summerlin
Community Association, and/or (3) the use, regulation, operation, maintenance, improvement, or repair,
of any Summerlin Community Association Property. No Owner shall be a member of, or shall have
any voting rights with regard to, any Summerlin Community Association. Each Purchaser has reviewed
 and understands the Summerlin Homebuyer's Notice prepared by I*IP (and attached as an exhibit
to the -Public Ofienng Statement) and the matters set forth therein; and

                  (m)    that Declarant presently plans to develop only those Lots which have already
been released for construction and sale, and that Declarant has no obligation with respect to future
phases, any custom lots, plans, zoning, or development of other real property contiguous to or
nearby the Unit; (b) -proposed or contemplated residential and other developments may have been
illustrated in the plot plan or other sales literature in or from Declarant's sales office, and/or Purchaser
may have been advised of the same in discussions with sales personnel; however, notwithstanding
such plot plans, sales literature, or discussions or representations by sales personnel or otherwise,
 Declarant isunder no obligation -to construct such future or planned developments or units, and the
same may not be built in the event .that Declarant, for any reason whatsoever, decides not to build
 same; (c) Purchaser is not entitled to rely upon, and in fact has not relied upon, the presumption or
 belief that the same will be built; and (d) no sales personnel or any other person in any way associated
 with Declarant has any authority to make any statement contrary to the provisions set forth in the
 foregoing or any provision of the written purchase agreement

        Section 16.4 Releases. By acceptance of a deed to a Lot, eah Owner, for itself and all
 Persons claiming under such Owner, shall conclusively be deemed to have acknowledged and agreed.
 to release Declarant and the Association, and their respective officers, managers, agents, employees,
 suppliers and contractors, and (with respect to the Country Club. (including, but not limited to, the Golf
 Courses and Maintenance Facility), the architects, designers, owner(s) and any operator(s) thereof,
 and their respective managers, employees, agents, suppliers and contractors), from any and all loss,
 damage or liability (including, but not limited to. any claim for nuisance or health hazards) related to
 or arising in connection with any disturbance, inconvenience, injury, or damage resulting from or
 pertaining to all and/or any one or more of the conditions, activities, occurrences described in the
 foregoing Sections 16.1 - 16.3, inclusive.




                                                     - 65 -
                                                                                   y7ULU7. lUi-3



                                    ARTICLE 17
                 ADDITIONAL EASEMENTS FOR BENEFIT OF COUNTRY CLUB

        Section 17.1 Burdened Property; Benefitted Property. For purposes of this Article 17, the
Properties shall comprise the burdened property ("Burdened Property") and the County Club Property
shall comprise the benefitted property ("Benefitted Property"). In addition to, and without limiting, any
other easement set lorth in this Declaration, Declarant has deemed it desirable to establish certain
protective covenants, conditions, restrictions and easements oñ and running with the Burdened
Property, for the benefit of the Benefitted Property, in part.to protect the Declarant and any subsequent
owner(s) of all or any part of the Benefitted Property, against improper or inappropriate development
and use of, and/or restrictions on, the Burdened Property or any part thereof. Each Owner of a Lot
in the Community, by acceptance of the deed thereto, whether or not so stated in such deed, is hereby
conclusively deemed to have acknowledged and agreed: (a) that the visibility and prestige of the
Country Club, which is located adjacent to or nearby (but is NOT A PART OF) the Properties and/or
Community, significantly enhances the visibility and prestige of the Community and thereby benefits
the property values of Lots within the Properties, even taking into consideration the detailed disclaimers
and releases set forth in Article 16 above, (b) that this Article 17 is integral to preservation of such
visibility and prestige and benefit to property values of Lots within the Properties, and (c) accordingly,
to have accepted this Article 17 and the provisions hereof.

       Section 17.2 Riohts of Access and Parkinq.         Declarant hereby expressly reserves the
following easements. The Benefitted Property Owner, the employees, agents, contractors, and
designees of the Benefitted Property Owner, and the persons permitted to use the Country Club
Property (or portion thereof) by the Benefitted Property Owner (regardless of whether such persons
are Owners hereunder) and their guests, shaH at aH times have a right and non-exclusive easement
of ingress, egress, access and use over all Common Elements (including Private Streets, sidewalks,
and entry areas) whether by automobile or other means, located within the Properties and reasonably
necessary to travel between the entrances to the Properties and the Benefitted Property, respectively
and, further, over those portions of the Properties (whether Common Elements or otherwise)
reasonably necessary to the use, operation, maintenance, repair and replacement of the Benefitted
Property. Without limiting the generality of the foregoing, persons who are permitted use of the
Country Club Property (or portions thereof) and memberrof the public as designated or permitted by
the Beneitted Property Owner, shall have the right to park their vehicles on the Private Streets and
other Common Elements located within the Properties at reasonable times before, during, and after,
events, tournaments, and other similar functions held by or at the Benefitted Property.

         Section 17.3 Additional Golf Course Easements. Declarant further expressly teserves the
 following additional easements:

                       the right, for a five minute period commencing on the departure of any golf ball
 from the Golf Courses onto the Properties, of the owner and/or lessee of the Golf Courses and of all
 players and guests at the Golf. Courses to enter upon the Properties to search for and recover errant
 golf balls; and
                       the right of the players and guests at the Golf Courses to enter, on golf carts or
 on foot, upon the Common Elements of the Properties in order to reasonably traverse the various
 playing elements of the Golf Courses; and

                        the right of the owner and/or lessee of the Golf Courses and of their employees
  and contractors to enter upon the Properties for the purpose of maintaining and repairing water and


                                                    - 66 -
imgation lines and pipes which are lócated in or originate from the Golf Courses and are used in
connection with the irrigation or sprinkling of the Golf Course landscaping or landscaping on the
Properties.

        Section 17.4 Additional Maintenance Easements A non-exclusive easement is hereby
reserved to the Benefitted Property Owner, its successors and 'assigns, its employees, invitees and
 agents upon, over, in, and across the Private Streets and those portions of the Common Elements
 reasonably necessary to travel, with storage and maintenance equipment, chemicals, and other items,
to and from the Country Club Property (and the vanous portions thereof, including, but not limited to,
the Maintenance Facility), and the nght to take all action reasonably necessary for the storage and
 maintenance of equipment, chemicaI and all other items.

       Section 17 5 Use Restrictions.      The use restrictions set forth in other portions of this
Declaration shall inure to 'the benefit of the Benefitted Property and the Benefitted Property Owners,
to the extent reasonably appropriate.

       Section 17.6 Jurisdiction and C000eration. The Association and the Benefitted Property
Owner cooperate to the 'maximum extent reasonably possible in the respective operation of the
Properties and the Country Club Property Notwithstanding the foregoing, without the prior written
consent of the Benefitted Property Owner in its sole discretion: (a) the Association shall have no power
to promulgate or enforce rules br regulations affecting activities on or use of the Benefitted Property,'
and (b) the Benefitted Property shall not be subject to any Association assessments, or other
Association charges, including, but not limited to, such assessments or charges for use, maintenance.
or repair of the Common Elements.

        Section -17.7 Term: Amendments. The covenants, conditions, restrictions, and reservation of
easements, contained in this Article 17 shall run with, burden and bind the Burdened Property and
shall inure to the benefit of the Benefitted Property and the owner thereof ("Benefitted Property
Owner"), and shall be enforceable by the Benefitted Property Owner. Declarant may transfer its rights
as Benefitted Property-Owner hereunder to a purchaser of the Country Club Property or portion thereof
by Recorded instrument. Neither this Article 17 nor any portion hereof, nor any other portion 'of this
 Declaration which aff&cts the Benefitted Property or the use arid enjoyment thereof, may be
terminated, extended, modified, or amended, as to the whole of the Burdened Property or any portion
 thereof, except by Recorded instrument executed and acknowledged by Declarant or successor
 Benefitted Property Owner. No amendment may be made to this Article 17 or to any other provision
 of this Declaration which adversely affects the Benefitted Property Owner, the Benefitted Property, or
 access to or use and enjoyment of The Country Club Property without the prior written consent of the
 Country Club Property Owner. -

                                      ARTICLE 18
                  ADDITIONAL PROVISIONS PERTAINING TO NEIGHBORHOODS

         Section 18.1 Neighborhood Common Areas. Certain portions of the Common Elements from
 time to time may be designated by Declarant (or with the prior written consent of Declarant, in its sole
 discretion) as Neighborhood Common Area, which shall constitute Limited Common Elements allocated
 and reserved for the exclusive use or primary benefit of Owners and Residents within a particular
  Neighborhood. By way of illustration and not limitation, Neighborhood Common Area may include
  Neighborhood entry features, entry gates, Private Streets, landscaping, and other Limited Common
  Elements within a particular Neighborhood. All costs associated with maintenance, management,
  operation, repair, replacement, and insurance of Neighborhood Common Area shall bea Neighborhood


                                                   - 67 -
                                                                                                  1023



Expense, llocated unifomily and levied as Neighborhood Assessments among the Owners in the
Neighborhood to which the Neighborhood Common Area is allocated.

         Section 18.2 Desiqnation of Neiqhborhood Common Areas. Neighborhood Common Area
initially shall be designated as such from time to time in: (a) a separate instrument Recorded by
Declarant (or with the prior written consent of Declarant, in its sole discretion); or (b) in the deed
conveying such Neighborhood Common Area to the Association (or, if applicable, to a Sub-Association
for the Neighborhood); or (e) on the relevant Recorded subdivision plat; provided, however, that any
such designation shall not preclude Declarant from later assigning usé of the same Neighborhood
Common Area to additional Units and/or Neighborhood(s), so long äs Declarant has a right to subject
additional propérty to this Declaration pursuant to Article 15, above. Thereafter, allocation of
Neighborhood Common Area may be reassigned upon written approval of the Board and the
affirmative vote of a majority of the votes within the Neighborhood(s) affected by the proposed
reallocation. As long as Declarant owns any property subject to this Declaration or which may become
subject to this Declaration in accordance with Article 15 above; any such allocation or reallocation shall
also require Declarant's prior written consent, in its sole discretion.

        Section 18.3 Use of Neiahborhood Common Area. Subject to all of the other provisions of this
Declaration (including, without limitation, the easements, use restrictions, maintenance and repair
obligations, and architectural and landscaping control provisions), Neighborhood Common Area (which,
by way of illustration and not limitation, may include separate Neighborhood entry gates and Private
Streets within the Neighborhood) is exclusively allocated to and reserved for the exclusive use of
Owners and Residents of Units within the Neighborhood to which the Neighborhood Common Area
is allocated.

        Section 18.4 Maintenance Reoair. and Replacement of Neiohborhood Common Area.

                   Costs of management, operation, maintenance, repair, replacement and
insurance of Neighborhood Common Area shall be a Neighborhood Expense assessed as
Neighborhood Assessments to the Owners of Units in the Neighborhood(s) to which the Neighborhood
Common Areas are allocated.

                       In the event a Supplemental Declaration is duly Recorded with respect to a
particular Neighborhood, and a Sub-Association is created, then the Association's maintenance and
repair obligations under this Declaration pertaining to the Neighborhood may (but need not necessarily)
be delegated to and assumed by the Sub-Association by written instrument, subject to the following.
The Association shall maintain the continuing right to perform maintenance and repair of property
within any Neighborhood, either by agreement with the Neighborhood or because, in the reasonable
business judgment of the ARC, the standards set forth or referenced in the Governing Documents are
 not reasonably being met.        If a Sub-Association fails to perform its maintenance and repair
 responsibilities, the Association may perform such maintenance and/or repair, and assess the costs
 as a Special Assessment against all Units within such Neighborhood.

                       In addition to any other enforcement rights, if an Owner fails property to perform
 his or her maintenance responsibility, the Association may Record a notice of violation or perform such
 maintenance responsibilities and assess all costs incurred by the Association against the Unit and the
 Owner as a Special Assessment. Except in an emergency situation, the Association shall provide the
 Owner (or any Sub-Association) reasonable notice and an opportunity to cure the problem prior to
 taking such enforcement action.
                                                                                         ii I



      Section 18.5 Allocation and Budoetino of Neiqhborhood Expenses. As part of the annual
Budget process set forth in, and subject to the provisions of. Section 6.4 above, the Board shall cause
to be prepared, and delivered, to eacl Owner of a Unit in a Neighborhood, a supplemental budget
covering The estimated Neighborhood Expenses for a Neighborhood (which shall also include a
 easonably prudent allocation for reserves for capital repairs and replacement of Neighborhood
 Common Area) The Association is hereby authonzed to levy Neighborhood Assessments uniformly
against all Units in the Neighborhood subject to assessment, to fund Neighborhood Expenses. Such
Neighborhood budget and Neighborhood Assessments promulgated by the Association shall become
effective unless disapproved by Owners of seventy-five percent (75%) of the affected Units in the
Neighborhood; however, there shall be no obligation to call a special meeting of the Owners of Units
in such Neighborhood. If the proposed budgetfora Neighborhood is disapproved, orif the Board fails
for any reason to determine the budget for any year, then until such time as a budget is determined,
the budget in effect for the immediately preceding year shall continue for the current year. The Board
 may revise the budget for any Neighborhood, and the amount of any Neighborhood Assessment from
time to time during the year, subject to notice and the nght of the Owners of Units in the affected
 Neighborhood to disapprove the revised budget as set forth above. Notwithstanding the foregoing, if
 a Supplemental Declaration has been duly Recorded, and a Sub-Association has been duly created,
with respect to such Neighborhood, then, subject to express delegation set forth in said Supplemental
 Declaration or separate Recorded delegation by Declarant, the Sub-Association shall be obligated to
 prepare, notice, and administer a Neighborhood budget in like manner as set forth in Section 6.4
above.

                -
                                   - ARTICLE 19 -
                     SUPPLEMENTAL DECLARATIONS; SUB-ASSOCIATIONS

        Section 19.1 Supplemental Declarations. Supplemental Declaration(s) may be Recorded from
time to time by Declarant (or with the express prior written consent of Declarant, in its sole discretion).
A Supplemental Declaration shall be supplemental to this Declaration, and may create a Sub-
Association and/or impose supplemental obligations, covenants, conditions, or restrictions, or
reservations of easements, with respect to a particular Neighborhood or other land described in such
instrument. This Declaration and any Supplemental Declaration shall be construed to be consistent
with each other to the greatest extent reasonably possible; however, in the event of any irreconcilable
conflict, the provisions of this Declaration shall prevail. Any purported Supplemental Declaration
Recorded by a Person other than Declarant, without the express prior wntten consent of Declarant,
shall be null and void.

        Section 19.2 Sub-Associations. Sub-Associations may be created from time to time, to
 administer designated Neighborhoods; provided that n Sue-Association may be validly organized
 except pursuant to the authority and jurisdiction of a Supplemental Declaration as set forth in Section
 19.1, above. A duly created Sub-Association shall be a supplemental Neighborhood homeowners
 association, organized pursuant to the authority and jurisdiction of a Supplemental Declaration, with
 concurrent and supplemental jurisdiction (subject tà this Declaration and the other Community
 Governing Documents) with the Association with respect toa particular Neighborhood.

        Section 19.3 Special Powers Relatinp to Sub-Associations. A Sub-Association shall have the
 power to establish standards and conduct activities for the property under its responsibility, subject to
 the Community Governing Documents and the Neighborhood Governing Documents. Notwithstanding
 the foregoing, the Association shall have the power and authority to veto any action taken or
 contemplated to be taken by any Sub-Association which the Board reasonably determines to be in

                                                    - 69 -
                                                                                   9fl7fl s fl4fl'3
                                                                                     tJ     .J   L



violation of the Community Governing Documents, or adverse or detrimental to the best interests of
the Association, or its Membérs. The Association also shall have the power to reasonably require
specific action to be taken by any Sub-Association in connection with the Sub-Association's obligations
and responsibilities (for example, without limitation, requiring specific maintenance or repairs, or
rcquiring-that-a -preposed-Neighbofheed-budget4nclude-certain-items-and-thafexpendittfres-be-made---
therefor). A Sub-Association shall take appropriate action required by the Association by written
notice, within the reasonable time frame set forth in such notice. If the Sub-Association fails to so
comply, the Association shaD have the power and authority to effectuate such action on behalf of the
Sub-Association and to levy Special Assessments to cover the reasonable costs thereof.


                                           ARTICLE 20
                                       GENERAL PROVISIONS

       Section 20.1 Enforcement. Subject to Section 5.3 above1 the Governing Documents may be
enforced by the Association as follows:

                       Breach of any of the provisions contained in the Declaration or Bylaws and the
continuation of any such breach may be enjoined, abated or remedied by appropriate legal or equitable
proceedings instituted by any Owner, including Declarant so long as Declarant owns a Unit, by the
Association, or by the successors-in-interest of the Association. Any judgment rendered in any action -
or proceeding pursuant hereto shall include a sum for attorneys' fees in such amount as the court may
deem reasonable, in favor of the prevailing party, as well as the amount of any delinquent payment,
interest thereon, costs of collection and court costs. Each Owner shall have a right of action against
the Association for any failure by the Association to comply with the provisions of the Governing
Documents.

                       The result of every act or omission whereby any of the provisions contained in
this Declaration or the Bylaws are violated in whole or in part is hereby declared to be and shall
constitute a nuisance, and every remedy allowed by law or equity against a nuisance either public or
private shall be applicable against every such result and may be exercised by any Owner, by the
Association or its successors-in-interest

                       The remedies herein provided for breach of the provisions contained in this
Declaration or in the Bylaws shall be deemed cumulative, and none of such remedies shall be deemed
exclusive.

                        The failure of the Association to enforce any of the provisions contained in this
 Declaration or in the Bylaws shall not constitute a waiver of the right to enforce the same thereafter.

                      If any Owner, his Family, guest, licensee, lessee or invitee violates any such
 provisions, the Board may impose a reasonable Spécial Assessment upon such Owner for each
 violation and may suspend the voting privileges of such Owner as further provided in the Governing
 Documents. Such Special Assessment shaU be collectible in the manner provided hereunder, but the
 Board shall give such Owner appropriate Notice and Hearing before invoking any such Special
 Assessment or suspension.
        Section 20.2 Severability. Invalidation of any provision of this Declaration by judgment or court
 order shall in no way affect any other provisions, which shall remain in full force and effect.



                                                   - 70 -
                                                                                           Lj2U UL3



        Section 20.3 Term. The covenants and restrictions of this Declaration shall run with and bind
the Properties, and shall inure to the benefit of and be enforceable by the Association or the Owner
of any land subject to this Declarationfiheir respective legal representatives, heirs, successive Owners
and assigns, until terminated in accordance with NRS § 116.2118.

         Section 20.4 Interpretation. The provisions of this Declaration shall be liberally construed to
effectuate its purpose of creating a uniform plan for the development of a residential community and
for the maintenance of the Common Elements. The article and section headings have been inserted
for convenience only, and shall not be considered or referred to in resolving questions of interpretation
or construction. Unless the context requires a contrary construction, the singular shall include the
 plural and the plural the singular, and the masculine, feminine and neuter shall each include the
 masculine, feminine and neuter.

        Section 20.5 Amendment. Except as otherwise provided by this Declaration, and except in
cases of amendments that may be executed by a Dectarant, this Declaration, including the Plat, may
only be amended by both: (a) the vote and agreement of Owners constituting at least sixty-seven
percent (67%) of the total voting power of the Association, and (b) the written assent or vote of at least
a majority of the Board. Notwithstanding the foregoing, termination of this Declaration and any of the
following amendments, to be effective, must be approved in writing by the Eligible Beneficiaries of at
least sixty-seven percent (67%) of the first Mortgagees on all of the Units in the Properties at the time
of such amendment or termination, based upon one-(1) vote for each first Mortgage owned:

                    Any amendment which affects or purports to affect The validity or priority of
Mortgages or the rights or protection granted to Beneficiaries, insurers, and guarantors of first
Mortgages as provided in Articles 7, 12, 13, 14 and 17 hereof

                       Any amendment which would necessitate a Mortgagee, after it has acquired a
Unit through foreclosure, to pay more than its proportionate share of any unpaid assessment or
assessments accruing after such foreclosure.

                         Any amendment which would or could result in a Mortgage being canceled by
forfeiture, or in a Unit not being separately assessed for tax purposes.

                        Any amendment relating to the insurance provisions as set out in Article 12
 hereof, or to the application of insurance proceeds as set out in Article 12 hereof, or to the disposition
 of any money received in any taking under condemnation proceedings

                        Any amendment which would or could result in termination or abandonment of
 the Properties or subdivision of a Unit, in any manner inconsistent with the provisions of this
 Declaration

                       Any amendment which would subject any Owner to a right of first refusal or other
 such restnction if such Unit is proposed to be sold, transferred or otherwise conveyed.

                         Any amendment concerning: (i) voting rights; (ii) rights to use the Common
 Elements; (iii) reserves and responsibility for maintenance, repair and replacement of the Common
 Elements; (iv) leasing of Units; (y) establishment of self-management by the Association where
 professional management has been required by any Beneficiary, insurer, or guarantor of a first
 Mortgage; (vi) boundaries of any Unit: (vii) annexation or deannexation of property to or from the
 Properties; and (viii) assessments, assessment liens, or the subordination of such liens.

                                                    -71 -
                                                                                               J




        Notwithstanding the foregoing, if a first Mortgagee who receives a written request from the
Board to approve a proposed termination, amendment or amendments to the Declaration does not
deliver a negative response to the Board within thirty (30) days of the mailing of such request by the
Board, such first Mortgagee shall be deemed to have approved the proposed termination, amendment
or amendments. Notwithstanding anything contained in this Declaration to the contrary, nothing
contained herein shall operate to allow any Mortgagee to: (a) deny or delegate control of the general
administrative affairs of the Association by the Members or the Board; (b) prevent the Association or
the Board from commencing, intervening in or settling any litigation or proceeding; or (c)prevent any
trustee or the Association from receiving and distributing any proceeds of insurance, except pursuant
to NRS § 116.31133 & 116.31135.

        A copy of each amendment shall be certified by at least two (2) Officers, and the amendment
shall be effective when a Certificate of Amendment is Recorded. The Certificate, signed and sworn
to by at least two (2) Officers, that the requisite number of Owners have either voted for or consented
in writing to any termination or amendment adopted as provided above, when Recorded, shall be
conclusive evidence of that fact. The Association shall maintain in its files the record of all such votes
or written consents for a period of at least four (4) yeats. The certificate reflecting any termination or
amendment which requires the written consent of any of the Eligible Beneficiaries of first Mortgages
shall include a certification that the requisite approval of such first Eligible Beneficiaries has been
obtained. Until the first Close of Escrow for the sale of a Unit, Declarant shall have the right to
terminate or modify this Declaration by Recordation of a supplement hereto setting forth such
termination or modification.

        Any of the foregoing notwithstanding, for so long as Declarant owns a Unit or Lot, Declarant
shall have the power from time to time to unilaterally amend this Declaration to correct any scrivener's
errors, to clarify any ambiguous provision, to modify or supplement the Exhibits hereto, and otherwise
to ensure that the Declaration conforms with the requirements of applicable law. Additionally, by
acceptance of a deed from Declarant conveying any real property located in the Annexable Area
(Exhibit "B" hereto), in the event such real property has not theretofore been annexed to the Properties
 encumbered by this Declaration, and whether or not so expressed in such deed, the grantee thereof
covenants that Declarant shall be fully empowered and entitled (but not obligated) at any time
thereafter, and appoints Declarant as attomey in fact, in accordance with NRS § 111.450 and
111.460, of such grantee and his successors and assigns, to unilaterally execute and Record an
Annexation Amendment, adding said real property to the Community, in the manner provided for in
 NRS § 116.2110 and in Article 15 above.

        Section 20.6 No Public Riqht or Dedication. Nothing contained in this Declaration shall be
 deemed to be a gift or dedication of all or any part of the Properties to the public, or for any public use.

          Section 20.7 Constructive Notice and Acceotance. Every Person who owns, occupies or
 acquires any right, title, estate or interest in or to any Unit or other portion of the Properties does
 hereby consent and agree, and shall be conclusively deemed to have consented and agreed, to every
 limitation, restriction, easement, reservation, condition and covenant contained herein, whether or not
 any reference to these restrictions is contained in the instrument by which such person acquired an
 interest in the Properties, or any portion thereof.

        Section 20.8 Notices. Any notice permitted or required to be delivered as provided herein
 shall be in writing and may be delivered either personally or by mail. If delivery is made by mail, it
 shall be deemed to have been delivered three (3) business days after a copy of the same has been
 deposited in the United States mail, postage prepaid, addressed to any person at the address given


                                                     - 72 -
by such person to the Association for the purpose of service of such notice, or to the residence of such
person ¡f no address has been given to the Association. Such address may be changed from time to
time by notice in writing to the Associthion.

        Section 20.9 Priorities and Inconsistencies. The Governing Documents shall be construed to
be consistent with one another to the extent possible. If there exist any irreconcilable conflicts or
inconsistencies among the Governing Documents, the terms and provisions of this Declaration shall
prevail (unless and to the extent only that the Declaration fails to comply with any applicable provision
of NRS Chapter 116 or other applicable law). In the event of any inconsistency between the Articles
and Bylaws, the Articles shall prevail. In the event of any inconsistency between the Rules and
Regulations and any other Governing Document, the other Governing Document shall prevail. In the
event of any inconsistency between any Community Governing Document and any other Governing
Document which is specific to a particular Neighborhood, the former shall prevail. Any inconsistency
between any Neighborhood-specific Governing Document shall be resolved in like manner as set forth
above.

        Section 20.10 Limited Liability. Except to the extent expressly prohibited by any applicable
provision of NRS Chapter 116, neither Declarant, Hl-IP, Summerlin Community Association,
Association, any Director or Officer, any committee representative, nor any agent or employee
respectively thereof shall be liable to any Owner or any other Person for any action or for any failure
to act with respect to any matter if the action taken or failure to act was in good faith. The Association
shall indemnify every present and former Officer and Director and every present and former committee
representative against all liabilities incurred as a result of holding such office, to the full extent
permitted by law.

       Section 20.11 Business of Declarant. Except to the extent expressly provided herein or as
required by any applicable provision of NRS Chapter 116, no provision of this Declaration shall be
applicable to limit or prohibit any act of Declarant, its agents or representatives in connection with or
incidental to Declarant's improvement and/or development of the Properties, so long as any Unit
therein owned by Declarant remains unsold.

        Section 20.12 Compliance With NRS Chapter 116. It is the intent of Declarant that this
 Declaration shall be in all respects consistent with, and not violative of, applicable provisions of NRS
 Chapter 116. In the event any provision of this Declaration is found to violate such applicable
 provision of NRS Chapter 116, such offending provision of the Declaration shall be severed herefrorn;
 provided, however, that if such severance shall impair the integrity of this Declaration, said offending
 provision shall be automatically deemed modified to the minimum extent necessary to conform to the
 applicable provision of NRS Chapter 116.

          IN WiTNESS WHEREOF, Declarant has executed this Declaration the day and year first written
 above.
                 DÈCLP.RANT:            RED ROCK HOMES, LLC
                                        a Delaware limited liability company
                                        By its Member, SUNRISE COLONY LIMITED PARTNERSHIP
                                        By Its General Partner,
                                        SUNRISE NEVADA CORPORATION


                                        By:
                                                JACK M. CONLON, President


                                                    - 73 -
                                                                                    'YUdJLU IUC.i




STATE OF NEVADA            )
                           )
COUNTY OF CLARK            )

       THIS INSTRUMENT was acknowledged before me on this            day of February, 1999, by
Jack M. Conlon, as President of Sunrise Nevada Corporation, as Generai Partner of Sunrise Colony
Limited Partnership, as Member of RED. ROCK HOMES, LLC.



                                                NOTARY PUBCIC

My Commission Expires:                          (seal)
                                                                  Nozy Pubit. 3      cf Nr.fl
                                                                      COUNTY OF J4BK
   /72a'i    ,í9fl                                                       PATTI SP
                                                                  Myrka_,_jMyt 1m




                                                -74-
                                      EXHIBITA'
                                ORIGINAL PROPERTY



       Lot Seven (7) of Block Eight (8), of RED ROCK COUNTRY CLUB AT SUMMERLIN -
 UNIT IA, as shown by map thereof onfile in Book 85 of Plats, Page 67, in the Office of the
County Recorder of Clark County Nevada together with a non exclusive easement of ingress
and egress over and enjoyment of Common Elements of the Properties (as said terms are
defined in the foregòing Déclàration).




                                            - 75 -
                                                                                    LJL.J




                                      EXHIBIT "B"

                                   ANNEXABLE AREA

[ALL, OR ANY PORTIONS FROM TIME TO TIME MAY, BUT NEED NOT NECESSARILY,
BE. ANNEXED BY DECLARANT TO THE PROPERTIESI


        PARCEL THREE (3), as shown on the parce! map on Page 95 of File 89 of Parcel
Maps, in the Office of the County Recorder of Clark County, Nevada as Instrument Number
01477, Book Number 970912; EXCEPTING THEREFROM: (a) the Original Property (as
described on the preceding Exhibit "A"), and (b) the Country Club Property (as described in
the following Exhibit "C").

      SAID PARCEL THREE (3) INCLUDES, BUT IS NOT LIMITED TO, THE REAL
PROPERTY DESCRIBED AS FOLLOWS:

               ALL OF THAT LAND LYING WITHIN THE EXTERIOR BOUNDARIES OF RED
ROCK COUNTRY CLUB AT SUMMERLIN - UNIT IA AS SHOWN BY MAP THEREOF ON
FILE IN BOOK 85 OF PLATS, PAGE 67, IN THE OFFICE OF THE COUNTY RECORDER OF
CLARK COUNTY, NEVADA, EXCEPTING THEREFROM the Original Property (as described
in Exhibit "A" above); and

           ALL OF THAT LAND LYING WITHIN THE EXTERIOR BOUNDARIES OF RED
ROCK COUNTRY CLUB AT SUMMERLIN - UNIT IB AS SHOWN BY MAP THEREOF ON
FILE IN BOOK 85 OF PLATS, PAGE 65, IN THE OFFICE OF THE COUNTY RECORDER OF
CLARK COUNTY, NEVADA; and

           ALL OF THAT LAND LYING WITHIN THE EXTERIOR BOUNDARIES OF RED
ROCK COUNTRY CLUB AT SUMMERLIN - UNIT IC AS SHOWN BY MAP THEREOF ON
FiLE IN BOOK 85 OF PLATS, PAGE 83, IN THE OFFICE OF THE COUNTY RECORDER OF
CLARK COUNTY, NEVADA.




       [NOTE: DECLARANT SPECIFICALLY RESERVES THE RIGHT FROM TIMETO
       TIME TO UNILATERALLY SUPPLEMENT OR MODIFY OF RECORD ANY AND
       ALL OF THE FOREGOING LEGAL DESCRIPTIONS!.




                                             - 76 -
                             EXHIBIT 'C"

                     COUNTRY CLUB PROPERTY

        [NOT A PART OF THE PROPERTIES OR COMMUNITY]

      [Legal Description to follow by separate Recorded instrument]




[NOTE: DECLARANT SPECIFICALLY RESEVES THE RIGHT FROM TIME TO
TIME TO UNILATERALLY SUPPLEMENT OR MODIFY OF RECORD THE
FOREGOING LEGAL DESCRIPTION:I.                           -




               rrr1-
WILBUR M. ROADHOUSE, ESQ.-
Goold Patterson DeVore Ales & Roadhouse
4486 South Pecos Road
Las Vegas, Nevada 89121                                  -   CLARK COUNTY, NEvADA
                                                         JUDITH A. VANDEVER RECORDER
(702) 436-2600                                             RECORDED AT REQUEST OF:
                                                    GOULD PTTERS0N ET. R.
                                                                                       83
                                                   BOOK:           09INS1     81023
                                    - 77 -        FEE:          e9.a0RF1r:
     Current Monthly Financial Documents
Red Rock Country Club Homeowners Association
06/24/2011                                     RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                                    Page: 1
 6:29 AM                                           OPERATING STATEMENT - DETAIL (UNAUDITED)
                                                                  05/31/2011

      MONTHLY     MONTHLY    MONTHLY                                           YEAR TO DATE    YEAR TO DATE   YEAR TO DATE      ANNUAL         BUDGET
       ACTUAL      BUDGET    VARIANCE                                                ACTUAL         BUDGET       VARIANCE       BUDGET       REMAINING

                                             REVENUE
    273,665.00    273,665         0.00    ASSOCIATION ASSMTS                   1,368,325.00      1,368,325            0.00    3,283,980    1,915,655.00
      1,555.00      1,197       358.00    GATE CARDS/TRANSPONDERS                  8,262.00          6,478        1,784.00       23,250       14,988.00
    (20,000.00)   (37,150)   17,150.00    BAD DEBT EXPENSE                       (82,594.00)      (185,750)    103,156.00      (445,800)    (363,206.00)
        225.00        258       (33.00)   DESIGN REVIEW                            1,625.00          1,290          335.00        3,100        1,475.00
      2,753.63      3,183      (429.37)   LATE FEES & INTEREST                    12,778.57         15,915       (3,136.43)      38,200       25,421.43
          0.00        200      (200.00)   NEWSLETTER SPONSORSHIP                   1,685.00          1,000          685.00        2,400          715.00
       (230.28)       333      (563.28)   OPERATING INTEREST                       1,984.10          1,665          319.10        4,000        2,015.90
      1,900.00      2,167      (267.00)   SANCTIONS & FEES                         9,168.92         10,835       (1,666.08)      26,000       16,831.08
     13,400.00     17,333    (3,933.00)   COMMUNITY STANDARDS FINES               66,296.00         86,665     (20,369.00)      208,000      141,704.00
      3,040.00      1,920     1,120.00    PARKING PERMITS                          4,440.00          3,022        1,418.00        8,000        3,560.00
    (45,080.00)   (45,080)        0.00    TRANSFER TO RESERVE                   (225,400.00)      (225,400)           0.00     (540,962)    (315,562.00)
     ¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯                                         ¯¯¯¯¯¯¯¯¯¯¯        ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯¯¯
    231,228.35    218,026    13,202.35       TOTAL REVENUE                     1,166,570.59      1,084,045      82,525.59     2,610,168    1,443,597.41

                                             EXPENSES

                                              SALARIES & BENEFITS
    42,297.44      40,337    (1,960.44)   SALARIES & BENEFITS                   193,239.27         194,409       1,169.73      495,236      301,996.73
    ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯                                          ¯¯¯¯¯¯¯¯¯¯¯        ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯¯¯¯
    42,297.44      40,337    (1,960.44)      TOTAL SALARIES & BENEFITS          193,239.27         194,409       1,169.73      495,236      301,996.73

                                              ADMINISTRATIVE & GENERAL
         0.00           0        0.00     AUDIT/TAX RETURNS                           0.00               0            0.00       6,500        6,500.00
       150.00         144       (6.00)    DUES/SUBSCRIPTIONS                        589.00             720          131.00       1,725        1,136.00
         0.00           0        0.00     OMBUDSMAN OFFICE FEE                        0.00               0            0.00       3,351        3,351.00
         0.00         333      333.00     ATTORNEY/COLLECTION FEES                  770.00           1,665          895.00       4,000        3,230.00
     5,423.00       5,427        4.00     QUICKPASS PLAIN & SIMPLE AGREEMENT     27,115.00          27,135           20.00      65,118       38,003.00
       705.81       2,917    2,211.19     LEGAL FEES/ATTORNEYS                    5,210.54          14,585        9,374.46      35,000       29,789.46
     3,650.00       3,650        0.00     MANAGEMENT FEES                        18,250.00          18,250            0.00      43,800       25,550.00
        70.26          58      (12.26)    MEETING EXPENSE                           190.05             290           99.95         700          509.95
     2,456.60       2,000     (456.60)    NEWSLETTER                              4,639.34           4,000         (639.34)      8,000        3,360.66
       595.66         667       71.34     OFFICE SUPPLIES                         4,013.82           3,335         (678.82)      8,000        3,986.18
       741.88       1,000      258.12     OFFICE EQUIPMENT/RENTAL                 5,328.86           5,000         (328.86)     12,000        6,671.14
        70.78         833      762.22     OFFICE SUPPLIES-PRINTING                  953.11           4,165        3,211.89      10,000        9,046.89
         0.00       2,083    2,083.00     PROFESSIONAL FEES                      19,182.16          10,415       (8,767.16)     25,000        5,817.84
       247.78       1,268    1,020.22     POSTAGE                                 2,151.34           6,340        4,188.66      15,220       13,068.66
     1,021.34       1,052       30.66     TELEPHONE                               5,044.16           5,260          215.84      12,624        7,579.84
         0.00         125      125.00     MILEAGE/AUTO                                0.00             625          625.00       1,500        1,500.00
         0.00         231      231.00     WEB HOSTING                             1,060.00           1,155           95.00       2,770        1,710.00
         0.00           0        0.00     COMMUNITY EVENTS                            0.00               0            0.00       3,000        3,000.00
    ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯                                          ¯¯¯¯¯¯¯¯¯¯¯        ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯¯¯¯
    15,133.11      21,788    6,654.89        TOTAL ADMIN & GENERAL               94,497.38         102,940        8,442.62     258,308      163,810.62

                                             CONTRACT SERVICES
          0.00       167       167.00     CONTRACT LABOR-HANDYMAN                   196.00             835         639.00         2,000        1,804.00
         77.50        95        17.50     SECURITY TELEPHONE/RADIOS                 481.84             475          (6.84)        1,140          658.16
06/24/2011                                   RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                                 Page: 2
 6:29 AM                                         OPERATING STATEMENT - DETAIL (UNAUDITED)
                                                                05/31/2011

      MONTHLY    MONTHLY   MONTHLY                                          YEAR TO DATE   YEAR TO DATE   YEAR TO DATE      ANNUAL        BUDGET
       ACTUAL     BUDGET   VARIANCE                                               ACTUAL        BUDGET       VARIANCE       BUDGET      REMAINING

          0.00         0        0.00    HOLIDAY DECORATIONS                        0.00              0            0.00       15,000     15,000.00
        690.00       690        0.00    CLEANING/JANITORIAL                    3,450.00          3,450            0.00        8,280      4,830.00
     32,000.00    32,500      500.00    LANDSCAPE MAINT                      160,000.00        162,500        2,500.00      390,000    230,000.00
      3,608.00     1,045   (2,563.00)   LANDSCAPE EXTRAS                       5,552.00          8,186        2,634.00       49,614     44,062.00
         60.00       125       65.00    PEST CONTROL                             300.00            625          325.00        1,500      1,200.00
        104.57       121       16.43    STORAGE                                  531.28            605           73.72        1,457        925.72
      2,225.07     2,343      117.93    SECURITY VEHICLE                      12,098.94         11,715         (383.94)      28,113     16,014.06
     82,308.17    86,965    4,656.83    SECURITY SERVICE                     401,146.58        421,346      20,199.42     1,042,101    640,954.42
        628.63       833      204.37    LIGHTING MAINTENANCE                   5,459.60          4,165       (1,294.60)      10,000      4,540.40
     ¯¯¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                         ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯¯¯¯
    121,701.94   124,884    3,182.06       TOTAL CONTRACT SERVICES           589,216.24        613,902      24,685.76     1,549,205    959,988.76

                                           REPAIRS & MAINTENANCE
       958.33      1,458     499.67     ACCESS SYSTEM REPAIR                   5,288.01          7,290       2,001.99       17,500      12,211.99
       650.31      1,083     432.69     REPAIRS & MAINT GENERAL                5,042.95          5,415         372.05       13,000       7,957.05
    ¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                         ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯¯¯
     1,608.64      2,541     932.36        TOTAL REPAIRS & MAINTENANCE        10,330.96         12,705       2,374.04       30,500      20,169.04

                                           PARTS & SUPPLIES
     4,403.31      1,500   (2,903.31)   GATEHOUSE SUPPLIES                    10,427.43          7,500       (2,927.43)     18,000       7,572.57
     1,684.60      1,379     (305.60)   GATE TRANSPONDERS-COGS                 6,991.98          6,895          (96.98)     16,548       9,556.02
         0.00        308      308.00    PARK SUPPLIES                          1,300.50          1,540          239.50       3,700       2,399.50
    ¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                         ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯¯¯
     6,087.91      3,187   (2,900.91)      TOTAL PARTS & SUPPLIES             18,719.91         15,935       (2,784.91)     38,248      19,528.09

                                           UTILITIES
     5,475.20      3,760   (1,715.20)   ELECTRICITY                           19,655.56         22,631       2,975.44       52,300      32,644.44
         0.00          0        0.00    REFUSE                                    79.14              0         (79.14)           0         (79.14)
     6,860.87     11,360    4,499.13    WATER                                 23,966.28         30,770       6,803.72      139,827     115,860.72
    ¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                         ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯¯¯
    12,336.07     15,120    2,783.93       TOTAL UTILITIES                    43,700.98         53,401       9,700.02      192,127     148,426.02

                                            TAXES
         0.00          0       0.00     REAL ESTATE TAXES                          0.00            300         300.00        1,395       1,395.00
        20.92        100      79.08     INCOME TAXES                             595.23            500         (95.23)       1,200         604.77
    ¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                         ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯¯¯
        20.92        100      79.08        TOTAL TAXES                           595.23            800         204.77        2,595       1,999.77

                                            INSURANCE
     1,197.77        664    (533.77)    DIRECTORS & OFFICERS                   4,885.81          3,199       (1,686.81)      7,847       2,961.19
     3,014.17      2,962     (52.17)    ASSOC MASTER POLICY                   14,793.01         14,813           19.99      35,568      20,774.99
       492.00        818     326.00     EXCESS LIABILITY                       2,786.00          4,090        1,304.00       9,816       7,030.00
    ¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                         ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯¯¯
     4,703.94      4,444    (259.94)       TOTAL INSURANCE                    22,464.82         22,102         (362.82)     53,231      30,766.18

                                           OTHER EXPENSES
        728.25      728        (0.25)   DEPRECIATION EXPENSE                   3,641.25          3,640           (1.25)      8,739       5,097.75
06/24/2011                               RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                                Page: 3
 6:29 AM                                     OPERATING STATEMENT - DETAIL (UNAUDITED)
                                                            05/31/2011

      MONTHLY    MONTHLY   MONTHLY                                      YEAR TO DATE   YEAR TO DATE   YEAR TO DATE     ANNUAL        BUDGET
       ACTUAL     BUDGET   VARIANCE                                           ACTUAL        BUDGET       VARIANCE      BUDGET      REMAINING

    ¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                     ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯¯¯
       728.25        728      (0.25)   TOTAL OTHER EXPENSES                3,641.25          3,640          (1.25)      8,739       5,097.75

    204,618.22   213,129   8,510.78    TOTAL OPERATING EXPENSES          976,406.04      1,019,834      43,427.96    2,628,189   1,651,782.96
     ¯¯¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                     ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯¯¯¯

    26,610.13      4,897   21,713.13   NET OPERATING INCOME (LOSS)       190,164.55         64,211     125,953.55     (18,021)    (208,185.55)
    –––––––––    –––––––    ––––––––                                    –––––––––––       ––––––––      –––––––––    ––––––––    –––––––––––
06/24/2011                           RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                             Page: 1
 6:29 AM                                   BALANCE SHEET OPERATING (UNAUDITED)
                                                        05/31/2011

                                                                            CURRENT MONTH     PREVIOUS MONTH    NET CHANGE
                                                                                  BALANCE            BALANCE


                CASH
             CASH-OPERATING ACCT                                                285,611.54        219,932.28    65,679.26
             CASH-OPG ACCT                                                      934,889.88        934,747.39       142.49
             CASH-BUILDER BOND CHARLES SCHWAB                                    38,559.49         37,782.64       776.85
                                                                              ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯¯
                TOTAL CASH                                                    1,259,060.91      1,192,462.31    66,598.60

                 ACCOUNTS RECEIVABLE
             ACCOUNTS RECEIVABLE                                                581,694.04        575,929.21      5,764.83
             A/R OTHER                                                           10,816.16            741.20     10,074.96
             RESERVE FOR BAD DEBT                                              (414,557.13)      (394,592.04)   (19,965.09)
                                                                              ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯¯
                TOTAL ACCOUNTS RECEIVABLE                                       177,953.07        182,078.37     (4,125.30)

                 FIXED ASSETS
             FIXED ASSETS                                                        64,996.84         64,996.84         0.00
             ACCUM DEPRECIATION                                                 (51,311.14)       (50,582.89)     (728.25)
                                                                              ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯¯
                TOTAL FIXED ASSETS                                               13,685.70         14,413.95      (728.25)

                 OTHER ASSETS
             DEPOSITS                                                           18,500.00          18,500.00          0.00
             PREPAID INSURANCE                                                  38,584.34          43,288.28     (4,703.94)
             PREPAID EXPENSE                                                    10,721.48           1,300.75      9,420.73
             PREPAID STORAGE FEES                                                1,045.72           1,150.29       (104.57)
             INVENTORY                                                          11,861.21          13,545.81     (1,684.60)
             ACCRUED INTEREST RECEIVABLE                                         1,153.01           1,527.63       (374.62)
                                                                              ¯¯¯¯¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯¯
                TOTAL OTHER ASSETS                                              81,865.76          79,312.76      2,553.00

             TOTAL ASSETS                                                     1,532,565.44      1,468,267.39    64,298.05
                                                                              –––––––––––       –––––––––––     –––––––––
06/24/2011                            RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                           Page: 2
 6:29 AM                                    BALANCE SHEET OPERATING (UNAUDITED)
                                                         05/31/2011

                                                                             CURRENT MONTH    PREVIOUS MONTH   NET CHANGE
                                                                                   BALANCE           BALANCE



             LIABILITIES & FUND BALANCE

                 CURRENT LIABILITIES
             ACCRUED EXPENSE                                                     85,851.38         67,667.70    18,183.68
             ACCOUNTS PAYABLE                                                    42,854.85          6,179.47    36,675.38
             ACCOUNTS PAYABLE OTHER                                                 811.00            811.00         0.00
             PREPAID ASSESSMENTS                                                227,371.07        242,683.13   (15,312.06)
             TAX PAYABLE                                                             74.69             53.77        20.92
             TRANSFER FEE LENDERS PAYABLE                                           510.00            915.00      (405.00)
             TRANSFER FEES                                                          365.00            365.00         0.00
             BUILDER BOND PAYABLE                                                36,025.00         37,500.00    (1,475.00)
                                                                               ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯
                 TOTAL CURRENT LIABILITIES                                      393,862.99        356,175.07    37,687.92

                 OTHER LIABILITIES
             LIABILITY FOR UNCLAIMED PROPERTY                                     5,221.92          5,221.92        0.00
                                                                               ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯
                 TOTAL OTHER LIABILITIES                                          5,221.92          5,221.92        0.00

                 TOTAL LIABILITIES                                              399,084.91        361,396.99    37,687.92

                FUND BALANCE
             OWNERS EQUITY                                                       943,315.98       943,315.98        0.00
             CURRENT YEAR INCOME (LOSS)                                          190,164.55       163,554.42   26,610.13
                                                                               ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯
                 TOTAL FUND BALANCE                                            1,133,480.53     1,106,870.40   26,610.13

             TOTAL LIABILITIES & FUND BALANCE                                  1,532,565.44     1,468,267.39   64,298.05
                                                                               –––––––––––      –––––––––––    –––––––––
06/24/2011                            RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                           Page: 1
 6:29 AM                                   BALANCE SHEET - RESERVES (UNAUDITED)
                                                        05/31/2011

                                                                             CURRENT MONTH    PREVIOUS MONTH   NET CHANGE
                                                                                   BALANCE           BALANCE


             ASSETS

                CASH - RESERVE FUND
             CASH-RESERVES                                                     2,720,720.69     2,664,689.62    56,031.07
                                                                               ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯
                TOTAL CASH - RESERVE FUND                                      2,720,720.69     2,664,689.62    56,031.07


                OTHER ASSETS
             ACCRUED RESERVE INTEREST                                            11,068.64         15,973.09    (4,904.45)
                                                                               ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯
                TOTAL OTHER ASSETS                                               11,068.64         15,973.09    (4,904.45)

             TOTAL ASSETS                                                      2,731,789.33     2,680,662.71    51,126.62
                                                                               –––––––––––      –––––––––––      ––––––––
06/24/2011                            RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                          Page: 2
 6:29 AM                                   BALANCE SHEET - RESERVES (UNAUDITED)
                                                        05/31/2011

                                                                             CURRENT MONTH    PREVIOUS MONTH   NET CHANGE
                                                                                   BALANCE           BALANCE



             LIABILITIES & FUND BALANCE

                 CURRENT LIABILITIES
             ACCRUALS - RESERVES                                                      0.00            525.00     (525.00)
             ACCOUNTS PAYABLE RESERVES                                                0.00            360.57     (360.57)
             TAX PAYABLE-RESERVES                                                11,609.16          9,529.50    2,079.66
                                                                               ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯¯
                 TOTAL CURRENT LIABILITIES                                       11,609.16         10,415.07    1,194.09

                 TOTAL LIABILITIES                                               11,609.16         10,415.07     1,194.09

                 FUND BALANCE
             RESERVE FUND EQUITY                                               2,475,335.28     2,475,335.28         0.00
             NET INCOME (LOSS)                                                   244,844.89       194,912.36    49,932.53
                                                                               ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯¯¯¯      ¯¯¯¯¯¯¯¯
                 TOTAL FUND BALANCE                                            2,720,180.17     2,670,247.64    49,932.53

             TOTAL LIABILITIES & FUND BALANCE                                  2,731,789.33     2,680,662.71    51,126.62
                                                                               –––––––––––      –––––––––––      ––––––––




             FOOTNOTE:
             IT IS THE ASSOCIATION'S POSITION THAT IT
             IS IN COMPLIANCE WITH NRS 116.3115, 2(B)
             AND THAT RESERVE FUNDS HAVE NOT BEEN
             USED FOR DAILY MAINTENANCE.
06/24/2011                                   RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION                                                    Page: 1
 6:29 AM                                          RESERVE STATEMENT - DETAIL (UNAUDITED)
                                                               05/31/2011

      MONTHLY    MONTHLY   MONTHLY                                                 YEAR TO DATE   YEAR TO DATE   YEAR TO DATE    ANNUAL       BUDGET
       ACTUAL     BUDGET   VARIANCE                                                      ACTUAL        BUDGET       VARIANCE     BUDGET     REMAINING


                                           REVENUE
     45,080.00    45,080        0.00    TRANSFER FROM OP'G                          225,400.00        225,400            0.00    540,962   315,562.00
      6,932.19     8,323   (1,390.81)   RESERVE INTEREST                             33,308.72         41,615       (8,306.28)    99,875    66,566.28
      ¯¯¯¯¯¯¯¯    ¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                                  ¯¯¯¯¯¯¯¯¯        ¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯
     52,012.19    53,403   (1,390.81)       TOTAL REVENUE                           258,708.72        267,015       (8,306.28)   640,837   382,128.28

                                            EXPENSES
         0.00        172     172.00     ENTRY GATE                                    1,551.28            860         (691.28)    36,124    34,572.72
         0.00      4,755   4,755.00     LANDSCAPING                                       0.00          4,755        4,755.00     28,531    28,531.00
         0.00          0       0.00     SLURRY SEAL                                       0.00              0            0.00     86,985    86,985.00
         0.00          0       0.00     PARK EQUIPMENT                                1,801.93              0       (1,801.93)    40,834    39,032.07
         0.00          0       0.00     CONCRETE REPAIRS                                518.00              0         (518.00)    51,500    50,982.00
     2,079.66      2,497     417.34     INCOME TAXES                                  9,992.62         12,485        2,492.38     29,963    19,970.38
     ¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯   ¯¯¯¯¯¯¯¯                                                  ¯¯¯¯¯¯¯¯¯        ¯¯¯¯¯¯¯       ¯¯¯¯¯¯¯¯     ¯¯¯¯¯¯¯    ¯¯¯¯¯¯¯¯¯
     2,079.66      7,424   5,344.34         TOTAL EXPENSES                           13,863.83         18,100        4,236.17    273,937   260,073.17

     49,932.53    45,979   3,953.53         NET INCOME (LOSS)                       244,844.89        248,915       (4,070.11)   366,900   122,055.11
      ––––––––    ––––––   ––––––––                                                  –––––––––        –––––––       ––––––––     –––––––    –––––––––




                                        FOOTNOTE:
                                        IT IS THE ASSOCIATION'S POSITION THAT IT
                                        IS IN COMPLIANCE WITH NRS 116.3115, 2(B)
                                        AND THAT RESERVE FUNDS HAVE NOT BEEN
                                        USED FOR DAILY MAINTENANCE.
             Design Guidelines
Red Rock Country Club Homeowners Association
                 Litigation
Red Rock Country Club Homeowners Association
      Nevada Required Resale Documents
Red Rock Country Club Homeowners Association
DEAR PROSPECTIVE PROPERTY OWNER:

The Red Rock Country Club Homeowners Association welcomes you to Las Vegas
Valley’s most prestigious master planned community. Living in a Homeowners
Association may be a new experience for you and our office is here to assist you as
needed. As a potential owner the Red Rock Country Club HOA is required to comply
with the resale requirements set forth in the Nevada Revised Statutes (NRS 116.4109).
Prospective and New Owners are strongly encouraged and cautioned to review their
rights, obligations and restrictions under this state law, as well as the recorded legal
documents of the Red Rock Country Club Homeowners Association.

The Red Rock Country Club Homeowners Association is required to provide you with
the legal and financial documents of the Association which are included in your resale
package.

Please also be advised that the Board of Directors is aware of legal action involving the
Association which is outlined in the legal disclosure letter.

The common area property of the Red Rock country Club Homeowners Association is
not involved in any current or past construction defect issues or investigation.

The Red Rock Country Club Homeowners Association hopes that this resolves any
questions that you may have relative to the upcoming purchase of your property. We
believe that this satisfies our obligation pursuant to NRS 116.4109. However, please
feel free to contact me should you have any questions regarding any of the information
contained in this letter please feel free to contact me at your earliest convenience.

Respectfully,

CAPITAL CONSULTANTS MANAGEMENT CORPORATION
Agent for the Red Rock Country Club Homeowners Association

Donna J. Erwin
Donna J, Erwin, AMSTM, LSM®, PCAM®
Community Manager
Red Rock Country Club HOA
derwin@ccmcnet.com




                1988 Alcova Ridge Drive, Las Vegas, Nevada 89135 Tele 702-562-3461 Fax 702-562-9863
BEFORE YOU PURCHASE PROPERTY IN A COMMON-INTEREST COMMUNITY
DID YOU KNOW . . .

1. YOU GENERALLY HAVE 5 DAYS TO CANCEL THE PURCHASE AGREEMENT?
When you enter into a purchase agreement to buy a home or unit in a common-interest community, in
most cases you should receive either a public offering statement, if you are the original purchaser of the
home or unit, or a resale package, if you are not the original purchaser. The law generally provides for a
5-day period in which you have the right to cancel the purchase agreement. The 5-day period begins on
different starting dates, depending on whether you receive a public offering statement or a resale package.
Upon receiving a public offering statement or a resale package, you should make sure you are informed of
the deadline for exercising your right to cancel. In order to exercise your right to cancel, the law generally
requires that you hand deliver the notice of cancellation to the seller within the 5-day period, or mail the
notice of cancellation to the seller by prepaid United States mail within the 5-day period. For more
information regarding your right to cancel, see Nevada Revised Statutes 116.4108, if you received a
public offering statement, or Nevada Revised Statutes 116.4109, if you received a resale package.

2. YOU ARE AGREEING TO RESTRICTIONS ON HOW YOU CAN USE YOUR PROPERTY?
These restrictions are contained in a document known as the Declaration of Covenants, Conditions and
Restrictions. The CC&Rs become a part of the title to your property. They bind you and every future
owner of the property whether or not you have read them or had them explained to you. The CC&Rs,
together with other “governing documents” (such as association bylaws and rules and regulations), are
intended to preserve the character and value of properties in the community, but may also restrict what
you can do to improve or change your property and limit how you use and enjoy your property. By
purchasing a property encumbered by CC&Rs, you are agreeing to limitations that could affect your
lifestyle and freedom of choice. You should review the CC&Rs, and other governing documents before
purchasing to make sure that these limitations and controls are acceptable to you. Certain provisions in
the CC&Rs and other governing documents may be superseded by contrary provisions of chapter 116 of
the Nevada Revised Statutes. The Nevada Revised Statutes are available at the Internet address
http://www.leg.state.nv.us/nrs/.

3. YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS FOR AS LONG AS YOU OWN YOUR
PROPERTY?
As an owner in a common-interest community, you are responsible for paying your share of expenses
relating to the common elements, such as landscaping, shared amenities and the operation of any
homeowners’ association. The obligation to pay these assessments binds you and every future owner of
the property. Owners’ fees are usually assessed by the homeowners’ association and due monthly. You
have to pay dues whether or not you agree with the way the association is managing the property or
spending the assessments. The executive board of the association may have the power to change and
increase the amount of the assessment and to levy special assessments against your property to meet
extraordinary expenses. In some communities, major components of the common elements of the
community such as roofs and private roads must be maintained and replaced by the association. If the
association is not well managed or fails to provide adequate funding for reserves to repair, replace and
restore common elements, you may be required to pay large, special assessments to accomplish these
tasks.

4. IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU COULD LOSE YOUR HOME?
If you do not pay these assessments when due, the association usually has the power to collect them by
selling your property in a non-judicial foreclosure sale. If fees become delinquent, you may also be
required to pay penalties and the association’s costs and attorney’s fees to become current. If you dispute
the obligation or its amount, your only remedy to avoid the loss of your home may be to file a lawsuit and
ask a court to intervene in the dispute.


Includes revisions to be effective 10/1/09.
5. YOU MAY BECOME A MEMBER OF A HOMEOWNERS’ ASSOCIATION THAT HAS THE
POWER TO AFFECT HOW YOU USE AND ENJOY YOUR PROPERTY?
Many common-interest communities have a homeowners’ association. In a new development, the
association will usually be controlled by the developer until a certain number of units have
been sold. After the period of developer control, the association may be controlled by property owners
like yourself who are elected by homeowners to sit on an executive board and other boards and
committees formed by the association. The association, and its executive board, are responsible for
assessing homeowners for the cost of operating the association and the common or shared elements of the
community and for the day to day operation and management of the community. Because homeowners
sitting on the executive board and other boards and committees of the association may not have the
experience or professional background required to understand and carry out the responsibilities of the
association properly, the association may hire professional community managers to carry out these
responsibilities. Homeowners’ associations operate on democratic principles. Some decisions require all
homeowners to vote, some decisions are made by the executive board or other boards or committees
established by the association or governing documents. Although the actions of the association and its
executive board are governed by state laws, the CC&Rs and other documents that govern the common-
interest community, decisions made by these persons will affect your use and enjoyment of your property,
your lifestyle and freedom of choice and your cost of living in the community. You may not agree with
decisions made by the association or its governing bodies even though the decisions are ones which the
association is authorized to make. Decisions may be made by a few persons on the executive board or
governing bodies that do not necessarily reflect the view of the majority of homeowners in the
community. If you do not agree with decisions made by the association, its executive board or other
governing bodies, your remedy is typically to attempt to use the democratic processes of the association
to seek the election of members of the executive board or other governing bodies that are more responsive
to your needs. If you have a dispute with the association, its executive board or other governing bodies,
you may be able to resolve the dispute through the complaint, investigation and intervention process
administered by the Office of the Ombudsman for Owners in Common-Interest Communities and
Condominium Hotels, the Nevada Real Estate Division and the Commission for Common-Interest
Communities and Condominium Hotels. However, to resolve some disputes, you may have to mediate or
arbitrate the dispute and, if mediation or arbitration is unsuccessful, you may have to file a lawsuit and
ask a court to resolve the dispute. In addition to your personal cost in mediation or arbitration, or to
prosecute a lawsuit, you may be responsible for paying your share of the association’s cost in defending
against your claim.

6. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE PURCHASERS OF YOUR PROPERTY
WITH INFORMATION ABOUT LIVING IN YOUR COMMON-INTEREST
COMMUNITY?
The law requires you to provide a prospective purchaser of your property with a copy of the community’s
governing documents, including the CC&Rs, association bylaws, and rules and regulations, as well as a
copy of this document. You are also required to provide a copy of the association’s current year-to-date
financial statement, including, without limitation, the most recent audited or reviewed financial statement,
a copy of the association’s operating budget and information regarding the amount of the monthly
assessment for common expenses, including the amount set aside as reserves for the repair, replacement
and restoration of common elements. You are also required to inform prospective purchasers of any
outstanding judgments or lawsuits pending against the association of which you are aware. For more
information regarding these requirements, see Nevada Revised Statutes 116.4109.

7. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN A COMMON-INTEREST
COMMUNITY THAT ARE GUARANTEED YOU BY THE STATE?
Pursuant to provisions of chapter 116 of Nevada Revised Statutes, you have the right:


Includes revisions to be effective 10/1/09.
(a) To be notified of all meetings of the association and its executive board, except in cases of emergency.
(b) To attend and speak at all meetings of the association and its executive board, except in some cases
where the executive board is authorized to meet in closed, executive session.
(c) To request a special meeting of the association upon petition of at least 10 percent of the homeowners.
(d) To inspect, examine, photocopy and audit financial and other records of the association.
(e) To be notified of all changes in the community’s rules and regulations and other actions by the
association or board that affect you.

8. QUESTIONS?
Although they may be voluminous, you should take the time to read and understand the documents that
will control your ownership of a property in a common-interest community. You may wish to ask your
real estate professional, lawyer or other person with experience to explain anything you do not
understand. You may also request assistance from the Office of the Ombudsman for Owners in Common-
Interest Communities and Condominium Hotels, Nevada Real Estate Division, at (702) 486-4033.


Buyer or prospective buyer’s initials:_____
Date:______________




Includes revisions to be effective 10/1/09.
                       Statement of Expected Fees and Charges

Per 116.4109, a resale package [shall contain] ... a statement describing all current and expected
fees or charges for each unit, including, without limitation, association fees, fines, assessments,
late charges or penalties, interest rates on delinquent assessments, additional costs for collecting
past due fines and charges for opening or closing any file for each unit.

Assessments: As noted on resale certificate.

Fees:

        Working Capital Contribution: If any, as noted on resale certificate

        Additional Reserve Contribution: If any, as noted on resale certificate

        Transfer Fee: As noted on resale certificate

        Resale Disclosure Packet: $160.00. Additional fees for rush delivery of $50.00 for 2-3 business
        days; $75.00 for one business day.

        Gate Transponder: $50 each
        Driveway Parking Permits $40.00
        Trusted Guest Permit: $75.00 initial application & transponder / $25.00 yearly renewal
        Trusted Vendor Permits: $50.00 non-refundable fee and $100.00 application fee. $100.00 yearly
        renewal

        Architectural or Design Review Fees: See fee schedule included in Design Guidelines or as
        separate document in resale disclosure packet.

        Certificate of Account Status: $ 35.00 per certificate

        Check/Credit Card by Phone: $10.00 handling fee per use
.
Fines: See fine schedule(s) included as document in resale disclosure packet.

Collection Related Charges:

Association Late Fee: $15.00

Interest: Prime plus 2% as ascertained by the Nevada Commissioner of Financial Institutions on January
1 and July 1.

LATE NOTICE                                                   $15.00
NSF FEE                                                       $35.00
30 DAY LETTER                                                 $25.00
DEMAND LIEN LETTER                                            $55.00
CERTIFIED MAIL                                                $ 4.50
LEGAL FILE PREP                                               $65.00
DEED ORDER                                                    $15.00
PAYMENT AGREEMENT                                             $45.00
NARRATIVE LETTER                                              $25.00
LIEN RELEASE LETTER                                           NO CHARGE

If an account is referred for collections, additional fees will apply and will be payable to the Trustee
Service or Attorney.
July 1, 2009
                                                                                                                         702.804.8885 Tel       702.804.8887 Fax
                                                                                                                     6224 W. Desert Inn Rd., Las Vegas, NV 89146




                                     Revised Collection Fees July 2011

Demand or intent to lien letter  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $135
Notice of delinquent assessment line  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $325
Intent to notice of default letter .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $90
Notice of default  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $400
Intent to notice of sale letter  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $90
Notice of sale  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $275
Intent to conduct foreclosure sale  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $25
Conduct foreclosure sale  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $125
Prepare and record transfer deed .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $85
Payment plan agreement – One-time set-up fee  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $30
Payment plan breach letter  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $25
Release of notice of delinquent assessment line  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $30
Notice of recession fee  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $30
Bankruptcy package preparation and monitoring  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $100
Mailing fee per piece for demand or intent to lien letter,
 notice of delinquent assessment line, notice of default and notice of sale  .  .  . $2
Insufficient funds fee .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $20
Escrow payoff demand fee  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $150
Substitution of agent document fee .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $25
Postponement fee  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $75
Foreclosure fee  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $150

Actual costs of collections pursuant to Nevada Register of Administrative Regulations R199-09
Posting and publishing:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .$300-500 per publication
Trustee’s sale guarantee:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . $300-400
Recordings for notice of liens, notice of defaults and notice of HOA sale:  . $14-72
Mailing costs:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Actual cost of postage
                                                         Costs may not be all inclusive.
                                              Order Statement
                          Red Rock Country Club Homeowners Association
                                              CCMC

Property Information:                                           Requestor:
2878 Soft Horizon                                               Realty one group
Las Vegas NV, 89135                                             Jaynee Shaw
Seller: Premiere asset Services Wells Fargo                     702-460-0518
Buyer: Williams Williams

Payment Summary
Payment Method: No Up Front Payment Required
Name: NA
Account Number: N/A
Payment Amount: $0.00
Payment Date: 08-01-2011
Payment Details
Amounts Prepaid
Up Front Total               $0.00




                                                  Page 1 of 1
Red Rock Country Club Homeowners Association
Policy Name: Repeat Guest and Vendor Offender of
Traffic & Safety Policies.
Responsible Committee: Traffic & Safety
Policy Date: June 17, 2010

Purpose

The Board of Directors for the Red Rock Country Club Homeowners Association (the
“Association”) hereby adopts the following Fine Policy and Procedures for implementation
within the Association, with the capitalized terms having the same meaning as those terms are
defined in the Declaration of Covenants, Conditions and Restrictions and Reservation of
Easements for Red Rock Country Club (the “Declaration”):

Authority

Consistent with the Association’s Governing Documents, and applicable Nevada law, the
homeowner is responsible for the actions and conduct of any guests of his or her lot, including,
but not limited to, family members, guests or invitees.

Specifics

A number of actions will be taken to address the issue of repeat guest and vendor traffic
offenders and those who also fail to stop for our security officers in the community. They are as
follows:
       A notice letter will be sent to the homeowner and/or tenant of the subject property to
       officially “Notice” the owner of the first violation of their guest pursuant to NRS-
       116.31031. Subsequent violations of the guest will result in the homeowner/tenant being
       subject to fines and penalties.
       On a subsequent 3rd violation in a six month period by the same guest or vendor will be
       deemed a repeat offender.
       On the next check-in attempt by that repeat guest or vendor offender, an escort by
       security will be required for that guest or vendor to proceed to/from the destination within
       the community. If the guest or vendor is found attempting to enter or leave the property
       without an escort, the homeowner/tenant and the guest or vendor will be fined for
       “Failure to Obey an Officer”.
       Future traffic or parking violations issued to the repeat guest or vendor offender will also
       result in a fine being assessed against the homeowner and/or tenant; additionally the
       repeat guest offender vehicle will be subject to tow in accordance with the Towing
       Policy.
       Note – If a violation is deemed to cause a substantial adverse effect on the health, safety,
       or welfare of the community then further fines and penalties may be immediately
       imposed by the board.
        The repeat offender program is in effect for a six month period. Once six months of no
       violations is reached, the fine system resets to the standard penalties and the process
       repeats.

Traffic & Safety Related Violations Subject to the Repeat Guest Offender Policy.

03092-00/0854 GOV POLICY (Draft) Repeat Guest and Vendor Offender Policy and Procedures 2010-06-09 (2).docx   1
          The following traffic and safety violations are subject to the same fine policy as speeding,
          including escalating fines.
              o Entering through an exit gate, both internal and external exit/entry gates.
              o Driving onto the golf course and adjoining golf cart paths
              o Driving on the incorrect side of the road
              o Failure to Comply with an Officer (including failure to stop when directed by
                 security officer)
              o Speeding
              o Driving through stop signs
              o Improperly parked vehicles
              o Failure to obtain and display a Guest Pass
              o Unsafe operation
              o All other Traffic and Safety and Parking violations for the community

                                            Board of Directors
                               Red Rock Country Club Homeowners Association
                                         1988 Alcova Ridge Drive
                                           Las Vegas, NV 89135




03092-00/0854 GOV POLICY (Draft) Repeat Guest and Vendor Offender Policy and Procedures 2010-06-09 (2).docx   2
                           RESOLUTION OF THE
             RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION
                          BOARD OF DIRECTORS


RE: RESOLUTION ON ENTRY GATE SYSTEMS


       WHEREAS, Red Rock Country Club Homeowners’ Association, Inc. (the “Association”) is a
Nevada non-profit corporation, duly organized and existing under the laws of the State of Nevada and
whereas the governing documents of the Association, including its CC&Rs, and NRS 116 provide the
Association acting, through its Board of Directors (“Board”), the right and the authority to adopt policies
and resolutions that govern the Association project, including the Association common areas (“Common
Areas”);

       WHEREAS, NRS 116.3102, gives the Board rule-making authority; and

       WHEREAS, the Association operates and maintains numerous automatic gate systems (“Gates”)
throughout the Common Areas in the community. From time to time, the Gates come into contact with
vehicles passing through the Gates occasionally causing damage to those vehicles due to driver error or
weather conditions such as extreme winds or other natural occurrences. The Board deems it necessary to
have a standardized procedure for investigating claims and demands made by those drivers seeking
reimbursement of damages (“Claims”) caused to their vehicles. Such claims may or may not be covered by
the Association’s insurance policies ; and

        WHEREAS, the Board deems it to be in the best interest of the Association to adopt a uniform and
systematic procedure for processing and making decisions on Claims submitted for vehicle damage
resulting from the Gates; and

        NOW THEREFORE, BE IT RESOLVED, that the Board of the Association adopts the following
policy and practice effective thirty (30) days after distribution to the Unit Owners:

1.     A vehicle owner whose vehicle is damaged by any of the Gates may submit a Claim for such
damages. Any such Claim must be submitted in writing to the Association within 48 hours of the damage
with any and all supporting documentation. The Board may summarily deny any Claim submitted after that
time.

2.     The Board has the right to request any additional documentation to substantiate any Claim
including, but not limited to, estimates of repair, photographs, witness statements, invoices and any other
documents the Board deems relevant and necessary to evaluate any Claim. The Board shall have 60 days to
make a finding as to the cause of the damage to the vehicle from the time that all requested documentation is
received by the Board.




                                                Page 1 of 2
3.      If the damage to the vehicle is found to be the fault of the vehicle or vehicle’s operator at the time of
the incident, the Board shall have no duty to take any further action on any Claim related to the damage.
Otherwise, the Board may submit the Claim to the Association’s insurance carrier for a coverage
determination. The owner of the vehicle will be reimbursed to the extent that any insurance coverage exists.
However, in the event that Association insurance covers any of the cost of damages, the vehicle owner shall
be responsible for any applicable deductible. In no event shall the Association pay the cost of any vehicle
damages without a finding of fault of the Association or its agents or representatives.

4.      All residents of the Association are advised to take all necessary care to ensure that their vehicles are
not in the path of the Gates as they open or close. All residents are hereby notified that the Gates are
mechanically operated and as such, may malfunction from time to time. Each resident must proceed
through the Gates with caution.

NOW, THEREFORE, the Board of Directors hereby resolves to take the following Action on behalf of
the Association Members:

       Adopt and approve this Resolution in accordance with the NRS 116 and the Association’s
       governing documents and made a part of the meeting minutes of June 2010.

       RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION, INC., a Nevada non-profit
       corporation

By:____________________________                        By:______________________________
   Its: Ken Hill, President                               Its: Joe Killoran, Secretary / Treasurer


(Print Name):____________________                     (Print Name):______________________




                                                  Page 2 of 2
Red Rock Country Club Homeowners Association
   Policy Name: Transponder & Decal Policy
   Responsible Committee: Traffic and Safety
   Replaces: Resolution dated 4/27/05
   Date Adopted: March 18, 2010




Purpose
To provide a policy for the distribution of transponders and decals to Homeowners, Trusted Guests, Trusted Vendors, HOA
Service Providers and Staff.

Authority
Section 5.2 of the Declaration of CC&R’s empowers the Board of Directors of the HOA to adopt, amend, repeal and/or
enforce reasonable and uniformly applied Rules and Regulations, which shall not discriminate among Members, for the use
and occupancy of the properties. The Board of Directors delegates the Traffic & Safety to make decisions with regard to the
Trusted Guest Policy for approvals case by case.

Scope
Provide a system to identify the residents, guests, and vendors for security purposes and to facilitate entry through the
manned gates. The Board of Directors finds there is a need to provide a policy on the issuance of transponders to preserve
and maintain the quiet enjoyment of the community; maintain esthetics and safety for the community and to provide
reasonable access and controls of the community as to reasonably minimize inconveniences associated with access for all
Homeowners, Trusted Guests, Trusted Vendors, HOA Service Providers and Staff.

Specifics
A Resident Decal will be issued to homeowner’s for each vehicle they own, upon receipt of the updated vehicle information
form. Each decal will be numbered and assigned to a specific vehicle. The decal(s) can be obtained from the HOA office.
A transponder and decal shall be issued to a Homeowner (Resident Decal), Trusted Guest (T/G Decal) and Trusted Vendor
(T/V Decal) upon receipt of appropriate fees and required documentation listed under the following procedures.

Procedures
Homeowner Transponders & Decals

1. Transponders are issued to licensed vehicles and golf carts only.
2. Homeowners are entitled to as many transponders as they have vehicles registered with the Association.
3. Transponders shall not be transferred from vehicle to vehicle.
4. If a transponder is found to be on a vehicle not registered with the HOA it will be turned off.
5. Transponders will allow access to the entire community 24 hours a day unless otherwise specified.
6. New homeowners are given two (2) transponders. Homeowners who purchased a resale home must purchase transponders
   if the original owners do not provide the transponders to the new homeowners.
7. Transponders can be purchased for $50.00 each and license plate transponders for $100.00 each.
8. Lost transponders and transponders of previous occupants will be deactivated. Stolen transponders must be reported
   immediately to the HOA Office for de-activation.
9. Break-away transponders will be issued to residents with rental cars. The resident decal and transponder will be kept in a
clear CD case and displayed on the vehicle dash when the rental car is in the community.

The following procedures shall govern the issuance of resident decals:
1. All vehicles MUST be registered to an owner or tenant providing proof of Residency of the Red Rock Country Club
Community. (ie. Vehicle Registration, Vehicle Insurance, Vehicle Bill of Sale). If the Resident’s vehicle information does
not show proof of Residency, proof of mail with the property address can be accepted.
2. The HOA office shall assign and distribute the decals. The staff must assure the decal application is completely filled out
and signed by the resident before turning it in for computer input.
                                                                                                                            1
3. In all events where the vehicle is owned by a corporation, trust partnership, or estate, individuals requesting the decal must
provide proof that he or she is associated with the corporate owner, trust, partnership or estate.
4. Decals will not be issued to non-licensed, or unverified vehicles or non-resident vehicles.
5. If you are a part-time resident at Red Rock you must obtain a resident decal, affix the decal to a clear CD case and display
it on the rental vehicle dash when entering the community.
6. A resident who has purchased new vehicle shall be issued a replacement decal. The resident must attempt to remove the
decal from the old vehicle for security purposes.
7. Decals will not be issued to non-owner residents (Lessees/renters) until a lease has been provided to the association.

Trusted Guest Transponders & Decals

1. A transponder may be issued to a Trusted Guest of any homeowner who is in good standing (no unpaid fines or
   assessments outstanding).
2. All approved Trusted Guests will be issued transponders and decals that will expire on October 31 of each year.
3. Upon approval of the application, the Trusted Guest shall purchase a transponder for $50.00 each plus an annual
   application fee of $25.00 per vehicle. If the homeowner has extra transponders a $20.00 trade-in credit will be given
   toward the purchase of a Trusted Guest transponder and decal.
4. The homeowner will be notified by the HOA office of all approved Trusted Guests. Each Trusted Guest must have the
  transponder and decal installed on the approved vehicle by the security at the West Gate any day of the week from
 10:00a.m.until 7:00p.m. Approved Trusted Guests should also be included on the homeowner’s permanent guest list in
 order to facilitate entrance when using a different vehicle when entering the community.
5. Guest shall be allowed a free exchange of the transponder and decal if a new vehicle is purchased, provided that the
     original transponder and decal is returned to the HOA Office.
6. Trusted Guests who are approved to receive a transponder must abide by the same rules and regulations as
         residents and must abide by the speed limits and other traffic rules of the community or their trusted guest privileges
         will be suspended. The Declaration of CC&R’s, Section 9.3, allows the enforcement of violations by tenants and
         guests against the homeowner but does not prohibit the association from enforcing fines against the actual person
         committing the violation.

Trusted Vendor Transponders & Decal

    1. A transponder and decal may be purchased by any Vendor or Service Provider.
    2. The cost of purchasing a transponder will be $50.00 per vehicle with an annual application fee of $100.00, neither of
       which is refundable and will expire each year on October 31.
    3. Each Commercial Vendor must provide the following documentation:
       a) Completed Application
       b) Signed Contract
       c) Check for $100.00 and $50.00 for each transponder
       d) Proof of Vehicle Insurance
       e) Vehicle Registration(s)
       f) Business License
       g) List of residents receiving services (to be updated every 6 months)
    4. Upon approval, Vendors will receive a copy of the rules and regulations. The Vendor will agree to abide by the rules
       and regulations of the Red Rock Community by signing the provided contract, which states he shall pay all fines.
    5. The transponder(s) will be programmed to the specified vehicle on the application and are not transferable. The
       transponder and decal will be affixed to the front windshield by security.
    6. If the transponder is removed from the windshield, it shall automatically be deactivated.
    7. The activation will provide the following access to the Vendor:
       Weekdays: Monday – Friday 7:00am to 6:00pm
       Saturday: 8:00am to 6:00pm
       Sundays and Holidays: No access
    8. Each transponder will be reviewed every three months by the Traffic/Safety Committee for any violations.
       a) If a Vendor has incurred three traffic violations in a three month period, at the discretion of the Committee, the
            transponder may be deactivated.


                                                                                                                               2
       b) If the Vendor has remained violation free in the following three months and all the fines have been paid, at the
          discretion of the Committee, the transponder shall be reactivated at no charge.
       c) The Traffic/Safety Committee reserves the right to revoke the privilege of a transponder, if a Vendor habitually
          disregards the rules and regulations and/or there is an outstanding balance for fines.

In order to accommodate service requirements for the community including emergencies transponders will be issued as
follows:

Red Rock Country Club Homeowners Association - 24 Hours

   •   All contracted staff members
   •   All contracted service providers

Red Rock Country Club – 24 Hours

   •   General Manager – Country Club Only
   •   Club employees as approved by the Red Rock Country Club Homeowners Association Board




                                                                                                                        3
Red Rock Country Club Homeowners Association

 Policy Name: Maintenance & Repair of Unmaintained Properties
 Responsible Committee: Board of Directors
 Date Adopted: March 18, 2010


Purpose

This document is intended to outline the policies and procedures that will be utilized by the Red Rock Country Club
Homeowners Association (HOA) to remedy situations where the Owner has failed to maintain in a neat, sanitary and
attractive condition the improvements on his property.

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation, shall be empowered to
adopt, amend repeal, and/or enforce reasonable Rules and Regulations pursuant to Article V, section 2 of the Covenants,
Conditions and Restrictions (CC&R’s) for Red Rock Country Club HOA. Section 9.1 of the (CC&R’s) requires the
Owner to maintain all improvements of an Owners unit in a neat, sanitary and attractive condition. Section 5.1(h) of the
CC&R’s grants the power, but not the duty, for the HOA to enter any area of a Unit, for the purpose of maintaining or
repairing any such area, where the Owner has failed to maintain the Unit as described in the CC&R’s, and/or poses an
imminent treat to health or substantial damage to the property. Section 5.1(h) and 9.1 of the CC&R’s provide for the
ability of the HOA to assess the Owner for all repairs and maintenance performed on behalf of the Owner. Section
116.310312 of Nevada Community Association Uniform Act (NRS116) provides for the creation of a super-priority for
any lien recovering costs incurred by the HOA to maintain the improvements of the improvements of an Owners Unit.

Scope
This policy is applicable to any Unit within the Red Rock Country Club community where the owner has not maintained
the improvements to his unit consistent with the standards as outlined in the CC&R’s.

Specifics
While the CC&R’s provide broad powers for the HOA to enter a Unit for purposes of remedying unmaintained
improvements, it is the general intent of the HOA to:
   •   Enter a Unit primarily for the purpose of removing and/or trimming unmaintained landscape material, remedying
       unmaintained water features and other structures or improvements that are detracting from the general look and
       feel of neighboring Units, and/or are deemed to be a potential safety hazard.
   •   Attempt to obtain permission from the residents of occupied units, prior to entering a Unit for purposes of
       remediating unmaintained improvements.
   •   Provide notice and an opportunity of a hearing to owners prior the HOA entering a Unit for remediation purposes.
       In the event of emergency which poses an imminent threat to health or substantial damage to property,
       notice and hearing shall not be required.
   •   Upon completion of any remediation work performed by the HOA, provide an invoice to the owner of record for
       costs incurred on behalf of the Unit’s Owner. This invoice will be entered into the owner’s account as a lien
       against the property which is due an payable immediately.




                                                                                                                      1
Red Rock Country Club Home Owners Association


Policy Name: Solicitation and Distribution of Materials
Responsible Committee: Traffic & Safety Committee
Date Adopted: March 18, 2010


Purpose
To establish a policy for solicitation within the community to maintain privacy for the homeowners. This
policy is not intended to prohibit the delivery of merchandise or provision of services to individual
residents where the resident has authorized entry for the vendor or solicitor; rather it is intended to
prohibit the blanket distribution of materials and personal solicitation of residents by uninvited,
unauthorized persons.

Authority
Article 5, Section 2 of the Covenants, Conditions, and Restrictions gives the Red Rock Country Club
Board of Directors the authority to formulate and enforce rules for the association. The purpose of this
policy is to establish reasonable rules regarding solicitation within Red Rock. Consistent with the
Association’s Governing Documents, and applicable Nevada law, the owner is responsible for the actions
and conduct of any occupants of his or her lot, including, but not limited to, family members, guests or
invitees.

Scope

The Board of Directors adopts policy on behalf of the Association Members for the procedures and fines
for unauthorized solicitation and distribution of materials for commercial, charitable, political, or other
purposes prohibited within Red Rock.

Specifics
With the exception of matters related to the internal governance of Red Rock Country Club HOA, the
door-to-door solicitation or distribution of materials for commercial, charitable, political or other purposes
is prohibited within Red Rock.

This policy is not intended to prohibit the delivery of merchandise or provision of services to individual
residents where the resident has authorized entry for the vendor or solicitor; rather it is intended to
prohibit the blanket distribution of materials and personal solicitation of residents by uninvited,
unauthorized persons.

Vendors or others, who enter the property on the authorization of one resident, but who, once within Red
Rock, solicit or distribute material to others, may be subject to a $100 fine. The Resident of said vendor
will be given a written warning on the first violation of their vendor, but thereafter may be fined, should
the owner allow the same vendor to enter property if the vendor, again, violates the policy.
With regard to matters related to internal HOA governance, including, but not limited to Red Rock board
elections, the HOA may solicit and distribute materials subject to the following restrictions:

   1. Unstamped material shall not be placed in a mailbox as this is a violation of Federal law.

   2. Materials shall not be posted to mailboxes, utility boxes, signs, light poles or other surfaces.

   3. Materials delivered to the home shall not be left where the material might blow away and create
      trash on common areas or other private properties.

   4. In order to communicate with residents in a timely manner, emergency security notifications
      being an example, communications authorized by the Red Rock Board of Directors shall be
      exempt from this policy.
Red Rock Country Club Homeowners Association
Policy Name: Construction and Services Regulations
Policy
Responsible Committee: Traffic and Safety
Replaces: Resolution dated July 27, 2005
Date Adopted: September 20, 2006
Date Revised: January 21, 2010

Purpose
To provide a policy with regulations for service providers and vendors when in the Red Rock
community.

Authority
Whereas, the Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit
corporation, shall be empowered to adopt, amend, repeal, and/or enforce reasonable Rules and
Regulations pursuant to Article V, Section 2 of the Covenants, Conditions and Restrictions for
Red Rock Country Club HOA; and has the power to impose fines and other sanctions for
violations of governing documents in accordance with NRS 116.31031.

Scope
Whereas, the Board of Directors finds there is a need to revise the Construction Rules and
Regulations to ensure compliance with NRS 116.31031; preserve and maintain the quiet
enjoyment of the community; maintain esthetics and safety for the community and to provide
reasonable access and controls for construction activity so as to reasonably minimize
inconveniences associated with construction for all owner’s and their guests. It is the intent that
this rule shall be applicable to owners, tenants, guests, service providers, contractors and all
others until such time as a majority of the Board of Directors finds it necessary to rescind,
modify or amend the policy.

Specifics
Job Site Access – All Contractors, vendors and service providers are to access the property
ONLY through the West or East Main gates, check in with security, show credentials as
requested by RRCCHOA Security and obtain the necessary hang tag to be displayed in the
vehicle at all times. The hang tag shall be hung on the interior rear view mirror so that it is
visible through the windshield. Trusted Vendors and Service providers with assigned
transponders may disregard this section and proceed through any entry gate.

Tailgating
No tailgating is allowed which avoids proper check in with RRCCHOA Security and getting a
hang tag. If an owner, renter, or guest facilitates tailgating with the intention of bypassing proper
check in, they may be subject to a citation for failure to comply.
Work Hours – All work is limited to the following hours only – NO work except interior
work on Sundays
                      Monday – Friday                   7:00 a.m. to 6:00 p.m.
                      Saturday                          8:00 a.m. to 6:00 p.m.
                      Sunday                            8:00 a.m. to 6:00 p.m. (Interior work only)
                                                                                                   1
                       Evenings                       6:00 p.m. to 9:00 p.m. (Interior work only)



Note: Work or service conducted on Evenings and Sundays shall not produce noise or
disturbance that is discernable from outside the home. If such noise is detected the work will be
required to stop immediately and be continued on the next Monday.

Exception to Policy: Emergency services to perform immediate repairs.

Holidays – NO work is permitted on the following holidays:

               New Year’s Day         Memorial Day                   Independence Day
               Labor Day              Thanksgiving                   Christmas Day

Equipment – Contractors shall remove all temporary structures, equipment, materials and
supplies from the site each day and leave the site neat and clean. Equipment not in daily use
cannot be stored on the site. Construction trailers are subject to review and approval by the
RRCCHOA. No temporary living quarters shall be allowed. Overnight storage of equipment or
vehicles is not allowed unless written permission is issued by RRCCHOA office personnel.
Storage of any materials or equipment on adjacent lots/units is prohibited without written
consent of the lot/unit owner and the RRCCHOA.

Cleanup – Contractors shall keep streets, gutters and adjacent properties clean and free of trash,
debris, or other related construction material. Street spills shall be promptly cleaned up and are
subject to fine if not resolved to the satisfaction of the RRCCHOA.

Site Spoils/Trash - Spoils generated by site prep must be retained on the lot. No material may be
placed on any street, lot, common area or golf course property. Temporary storage of material in
the street in front of the house being serviced is allowed if permission is received from
RRCCHOA. Trash must be placed inside a container which is emptied on a regular basis.
Approval for the trash receptacle must be obtained from the RRCCHOA. Contractors are
responsible for any scattered trash or debris.

Sanitary Facilities – A portable sanitary facility must be secured on each lot; kept in good clean
repair and be located on the lot. Portable sanitary facilities may not be stored, kept or maintained
on any street or sidewalk within the community.

Vehicles & Parking – All vehicles, including construction and crew vehicles, shall park only on
the site or directly in front of it. Vehicles must obey all common courtesy traffic and safety rules,
which include but are not limited to the following: vehicles may not park against the flow of
traffic; block driveways, mailboxes or fire hydrants; impede traffic; park on sidewalks or in front
of occupied homes and/or driveways. The Speed limits within the Red Rock Community are
25 mph (15 mph in construction areas and main entrance gates) and are strictly enforced
by radar. Owners of vehicles found in violation will be subject to escalating citations.

                                                                                                   2
Conduct – Offensive behavior, language, loud or boisterous activity will not be tolerated.
Animals are not permitted. Smokers must use caution and fireproof containers. Alcohol, drugs
and firearms are forbidden. Any person observed violating this policy shall be asked to
immediately leave the site and may be denied future site access.

Damage – Damage to adjacent property or common area must be immediately corrected at the
Contractor’s, vendor’s, or service provider’s expense. If not repaired in a timely manner or to the
satisfaction of the RRCCHOA, costs to do so will be assessed to the Owner or withdrawn from
the Owner’s Construction Deposit if applicable.

Violations: Upon being given proper notice and an opportunity to attend a hearing, any
violation of these provisions will be subject to corrective action by the Association, which may
include fines (subject to NRS 116.31031) if necessary for each violation and/or removal from the
site entirely. The Red Rock property owner shall be held responsible for the actions of his/her
contractors, vendors and service providers.




                                                                                                 3
Red Rock Country Club Homeowners Association
 Policy Name: Credit Account/Credit Card Policy
 Responsible Committee: Budget and Finance
 Replaces: N/A
 Date Adopted: January 21, 2010

Purpose
To establish policies for the use of and control over credit accounts and credit cards
issued in the name of the Red Rock Country Club HOA

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit
corporation, is empowered to adopt, amend repeal, and/or enforce reasonable Rules and
Regulations pursuant to Article V, section 2 of the Covenants, Conditions and
Restrictions for Red Rock Country Club HOA.

Background
The Nevada Legislature amended the Statutes relating to HOA’s in 2009. One of these
amendments effectively precludes the use of petty cash accounts or debit cards to pay for
HOA expenses. In order to efficiently manage the operations of the HOA, the
community manager needs to have the ability to pay for expenses which are minor in
amount (individually less than $1,000) and for which it would not be practical to
establish credit arrangements with a vendor. The HOA may find it necessary to open one
or more credit accounts and to obtain a credit card(s) in the name of the Association in
order to meet its operational needs.

Scope
While it is not realistic to be able to enumerate all of the possible appropriate uses of
credit accounts or credit cards, it is clear that any use of such accounts or cards should
only be for legitimate business purposes of the HOA. Any credit accounts or credit cards
should not be used as a substitute or alternative for the Community Manager’s (CCMC)
normal employee expense reporting requirements and processes.

Specifics
   1. Any credit accounts or credit cards must be approved by the HOA’s Board of
       Directors.
   2. Account limits should not exceed $3,000
   3. Use of the credit accounts and/or credit cards is limited to the on-site Community
       Manager and any other bonded employee of CCMC which the Board may
       specifically designate.
   4. In order to monitor the appropriate use of such credit accounts and credit cards,
       copies of all credit account and credit card statements will be provided to the
       Finance Committee as part of the normal monthly financial statement review
       process


                                                                                         1
Red Rock Country Club Homeowners Association


 Policy Name: Reserve Account Policy
 Responsible Committee: Budget and Finance
 Adopted: July 16, 2008
 Revised: September 23, 2009 and January 21, 2010


Purpose

This document is intended to be the Association's Reserve Account Policy and is subject to
periodic review by management, the Finance Committee and the Board of Directors (the
“Board”) of the Red Rock Country Club Homeowners Association (the “HOA” or
“Association”). Changes to this Policy must be approved by the Board

Authority

The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation,
shall be empowered to adopt, amend repeal, and/or enforce reasonable Rules and Regulations
pursuant to Article V, section 2 of the Covenants, Conditions and Restrictions for Red Rock
Country Club HOA.

Background

The Nevada Statutes require homeowners associations to establish adequate Reserves, funded on
a reasonable basis, for the repair, replacement and restoration of the major components of the
common area elements and that Reserve funds should be used for only those purposes and must
not be used for daily maintenance. The Statutes also provide for an HOA to levy special
assessments and/or increase its monthly assessment to a level required to have adequate Reserve
Funds. These actions are not subject to the specific CC&R’s of the HOA.

The Statutes also require an HOA’s Board to:

   -    Commission a Reserve Study at least every five years.
   -    Perform an annual review of the results of the Study in order to determine whether or not
        the Reserves are sufficient.
   -    Annually make adjustments to the funding plan which are considered necessary to
        provided adequate funding.

Scope

This policy sets forth guidelines for compliance with the Nevada Statutes discussed above.

Specifics

   -    The HOA’s Board acknowledges its responsibilities with respect to the establishment,
        maintenance and use of Reserve funds. In that regard the Board has also established a
        goal of 100% funding since such a funding plan/status is the most equitable to both
        current and future homeowners and also helps to minimize the necessity for future special
        assessments.


                                                                                               1
-   The HOA’s Board will retain a qualified Reserve Specialist to conduct a Full Study at
    least every five years.

-   The HOA’s Board will perform an annual review of the Reserve Study for purposes of
    evaluating the funding status of the Reserve Account and to determine if any adjustments
    are necessary to provided adequate funding in light of the funding goal. To assist in the
    performance of its annual review the Board may consider retaining the Reserve Specialist
    to perform a Reserve Study update report.

-   Expenditures of Reserve funds can only be made for the purposes described above and
    require Board approval. Prior to approving a Reserve expenditure, the Board should be
    satisfied that the expense is based on a demonstrated need for the repair, replacement or
    restoration of the common area component and that the expenditure is reasonable and
    consistent with the funding plan adopted. Checks written on the Reserve Account bank
    account require the review by and signatures of two Board members.

-   The determination of whether an expense should be charged to the Operating Account or
    the Reserve Account, in most cases, will be fairly clear. However, the following
    summary guidelines address expenditures for landscaping (a significant component of the
    common elements) since such expenditures typically include amounts for routine
    maintenance as well as amounts that are more appropriately categorized as
    replacement/restoration:

       Operating Expenses
           - Routine landscape maintenance
           - “Seasonal Color” changeouts
           - Minor irrigation repairs
           - Tree trimming/pruning (including palms)

       Reserve Expenses
           - Replacement of landscape rock
           - Replacement of trees and palms
           - Replacement of bushes, shrubs and cacti
           - Other landscape repairs, replacements and restorations

    If there are any questions as to the proper classification of expenditures (Operating vs.
    Reserve), then those questions should be discussed with the Finance Committee and the
    Board in order to ensure the proper accounting for the transactions.

-   The Association is authorized to provide reserve funds for property that the HOA does not
    own but is obligated to maintain, repair, replace and restore, See NRS 116.3115 as
    amended by SB 351 effective 10/1/09. The HOA, by way of an agreement with Clark
    County and the developer of Red Rock, is obligated to provide for the maintenance, repair
    and restoration of the medians on Desert Foothills (from the westerly exit of the 215 to the
    upper end of the community) and the median on Red Rock Ranch Road (from Desert
    Foothills to Desert Inn).




                                                                                              2
Red Rock Country Club Homeowners Association
Policy Name: Escalating Safety Fines Policy and
Procedures
Responsible Committee: Traffic & Safety
Policy Date: April 18, 2007
Revised Date: January 21, 2010



Purpose

The Board of Directors for the Red Rock Country Club Homeowners Association (the
“Association”) hereby adopts the following Fine Policy and Procedure for implementation within
the Association, with the capitalized terms having the same meaning as those terms are defined
in the Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for
Red Rock Country Club (the “Declaration”):

Authority

Consistent with the Association’s Governing Documents, and applicable Nevada law, the owner
is responsible for the actions and conduct of any occupants of his or her lot, including, but not
limited to, family members, guests or invitees.

Specifics

A number of actions have been taken to deal with the issue of speeding in the community. They
are as follows:

     •    25 mph speed limit signs that are the same style used nationwide by public agencies.
     •    15 mph signs at the East and West gate entrance areas
     •    Strictly Enforced banners affixed to the 25 mph signs at each entrance
     •    White striping on all streets with stop signs
     •    A movable speed enforcement (radar) sign that shows your current speed
     •    Roving security patrols perform speed enforcement on major streets.

Speeding Violations

       Speeding violations shall be subject to the graduated fine scale except in the case of
       repeated violations
     • 31-40 mph = $100.00, 41-50 mph = $150.00, and 50+ mph = $200.00
     • A repeat offender program is in force for speeding citations, with escalating fines for a
       Driver or Owner of the vehicle who incur repeated speeding infractions.
          o Two violations in the first six months will be the normal penalty per violation.
          o The third violation will be 2X the standard penalty.
          o Subsequent violations will be 3X, 4X etc. the normal penalty until the maximum
              fine allowed by state law is reached. When the maximum fine is reached,
              subsequent citations will be issued at that rate.

03092-00/0854 GOV POLICY Escalating Speeding Fines Policy and Procedures 2010-01-21.doc            1
               o Once a six month period of no violations is reached, the fine system resets to the
                 standard penalties and the process repeats.


Other Safety Related Violations Subject to the Escalating Fine Policy.


          The following safety violations by the driver or owner of a vehicle shall be subject to the
          same fine policy as speeding, including escalating fines.
             o Entering through an exit gate, both internal and external exit/entry gates.
             o Driving onto the golf course and adjoining golf cart paths
             o Minors driving golf carts
             o Driving on the incorrect side of the road.
             o Driving through stop signs




                                            Board of Directors
                               Red Rock Country Club Homeowners Association
                                         1988 Alcova Ridge Drive
                                           Las Vegas, NV 89135




03092-00/0854 GOV POLICY Escalating Speeding Fines Policy and Procedures 2010-01-21.doc                 2
Red Rock Country Club Homeowners Association
 Policy Name: Check Writing Policy - Operating Account
 Responsible Committee: Budget and Finance
 Replaces:
 Date Adopted: April 28, 2004
 Revised: January 21, 2010

Purpose
The Board of Directors finds there is a need to establish a check writing policy to ensure that the
duties and responsibilities of managing the Association can be carried on without interruption.

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation,
shall be empowered to adopt, amend, repeal, and/or enforce reasonable Rules and Regulations
pursuant to Article V, section 2 of the Covenants, Conditions and Restrictions for Red Rock
Country Club HOA.

The Board of Directors shall have the power to contract with a Community Manager to perform all
of any part of the duties and responsibilities of the Association, other than those for which such
delegation is prohibited by statute or regulatory authority, for the purpose of operating and
maintaining the property.

Background
Prior policy of the HOA authorized the HOA’s Community Manager to sign checks written on the
HOA’s bank accounts. In 2009, the Nevada Legislature amended a statute (specifically NRS
116.31153) which impacts the prior policy. The amendment requires that, effective October 1,
2009, funds in an association’s operating account may not be withdrawn without the signatures of at
least one member of the association’s Board or one officer of the association and a member of the
Board, an officer of the association or the Community Manager. The Statute provides for limited
exceptions to the prescribed signatory requirements, these are:

          •   Transfers of Operating funds to the Reserve account at regular intervals
          •   Automatic Operating account payments for the association’s utilities expenses

The HOA’s Board and its Finance Committee have evaluated the impacts of this new legislation
and have concluded that the Policy Specifics outlined below provide for appropriate statutory
compliance.

Scope
It is the intent that this policy shall be applicable until such time as a majority of the Board of
Directors finds it appropriate to rescind or amend this policy.

Policy Specifics

   •   Signatory authority for any and all bank accounts of the Association will be limited to the
       Members of the Board of Directors.
•   Debit cards may no longer be used to make purchases for the Association or to pay
    expenses of the Association.

•   All checks will be signed by two members of the Board. Signing Board members should
    be satisfied that expenditures are proper disbursements of Association funds.

•   The Community Manager will provide the signing Board members with a check register
    accompanying the checks to be signed. The check register will include the check #,
    check amount and the payee for all checks to be signed. The check register will also
    include the Community Manager’s certification stating that he/she is satisfied that the
    disbursements are appropriate expenditures of the Association and that the Community
    Manager is maintaining appropriate supporting documentation for all such disbursements.

•   The Community Manager, when requested by a Board member, will provide appropriate
    supporting documentation for any or all disbursements.

•   Bank reconciliations for the Associations bank accounts and related cancelled checks will
    be reviewed by the Finance Committee on a monthly basis.
Red Rock Country Club Homeowners Association
   Policy Name: Unmaintained Pool and Landscape Policy
   Responsible Committee: Community Standards Committee
   Date Adopted: October 15, 2008
   Date of Revision: October 21, 2009
Purpose
To establish a policy with procedures and fines for unmaintained swimming pools and landscapes which are a Health,
Safety and Welfare concern for the Red Rock Country Club Homeowners.

Authority
Consistent with the Association’s Governing Documents, and applicable Nevada law, the owner is responsible for the
maintenance of his or her lot, including but not limited to hardscape, landscape and amenities.

Assembly Bill – A.B. 361: Sections 1-3
Provides that the HOA may, without liability for trespass, enter on the grounds of a unit that is vacant or that it is in the
foreclosure process, whether vacant or not. If a unit is vacant and the Association has provided the unit’s owner with
notice and an opportunity for a hearing in the manner provided in NRS 116.31031, the Association may enter the grounds
of the unit to maintain the exterior of the unit or abate a public nuisance as described in subsection 2 if the unit’s owner
refuses or fails to do so. The Association may order that the costs of any maintenance or abatement conducted pursuant to
subsection 2 or 3 including, without limitation, any inspection fees, notification and collection costs and interests, be
charged against the unit’s owner. Any amount of the costs for such maintenance or abatement which are not paid by the
unit’s owners will be a lien against the unit.

NRS 116.31031 (1-B)
If the violation poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the
units’ owners or residents of the common interest community, the amount of the fine must be commensurate with the
severity of the violation and must be determined by the Executive Board in accordance with the governing documents.

CC&R’s Section 5.2
No fine imposed under this Section 5.2 may exceed Fifty Dollars ($50.00) or other amount set forth in applicable
provision of NRS Chapter 116) for each failure to comply or may be imposed until the Owner or Resident has been
afforded the right to be heard, in person, by submission of a written statement, or through a representative, at a regularly
noticed hearing unless the violation is a type that substantially threatens the health and welfare of the Owners and
Community, in which case, the Board may take expedited action, as the Board may deem reasonable and
appropriate under the circumstances, subject to the limitations set forth in Section 5.2(b).

CC&R’s Section 9.1
“In addition, the Board shall have the right, but not the duty, after Notice and Hearing as provided in the Bylaws, to enter
upon such unit to make such repairs or to perform such maintenance and to charge the costs thereof to the Owner. Such
costs shall be a Special Assessment, enforceable as set forth in the Declaration.”

Scope
The Board of Directors adopts the following policy on behalf of the Association Members for the procedures and fines of
unmaintained swimming pools and landscapes which are a concern for the Health, Safety and Welfare of the Red Rock
Country Club Homeowners.

Specifics
Improperly-maintained and abandoned swimming pools are capable of contributing to the spread of waterborne diseases
and therefore considered a Health, Safety and Welfare violation. Improperly-maintained lots which include brown
shrubbery, trees and grass are capable of being a fire hazard and therefore considered a Health, Safety and Welfare
violation. The unmaintained lots and abandoned swimming pools substantially threaten the Health, Safety and
Welfare of the Owners and the Community and at the expense of the Unit’s Owner, the HOA may, without liability
for trespass, enter on the grounds of a unit that is vacant or that it is in the foreclosure process, whether vacant or

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not, to maintain the exterior of the unit if, after notice and a hearing, the Unit’s Owner refuses or fails to do so. The
revised Policy shall be effective one month after the date of the notice mailing.

Procedures
1. Contact the Health Department and Code Enforcement.
2. If the violation is a type that substantially threatens the Health, Safety and Welfare of the Owners and Community, the
   Board may take expedited action.
3. Bypass the violation letter, send a Hearing Notice.
4. At the Hearing, a fine of $500.00 may be imposed and a certified Hearing Outcome letter will be sent to the
   Homeowner.
5. The Owner shall have 14 days to respond to the Hearing Outcome letter and must return the Notice of Compliance. If
   the Health, Safety and Welfare violation is not cured within fourteen (14) days of date of notification of the hearing
   results, the violation shall be deemed a continuing violation. Thereafter, an additional fine shall automatically be
   imposed for each seven (7) day period or portion thereof that the violation is not cured. This additional fine will be
   imposed without notice or opportunity to be heard, per Nevada law.
6. All fines and special assessments imposed for the unmaintained swimming pool or landscape shall be strictly upheld.
7. All fines and Special Assessments incurred for the repairs to the unmaintained landscape or swimming pool shall be
   charged to the Unit’s Owner of record.
8. If the Health, Safety and Welfare violation is not cured after 30 days of the date of notification, the Board shall have
   the right, but not the duty, after Notice and Hearing as provided in the Bylaws, to enter upon such unit to make such
   repairs or to perform such maintenance and to charge the costs thereof to the Owner. Such costs shall be a Special
   Assessment, enforceable as set forth in the Declaration and all applicable Statutes.




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Red Rock Country Club Homeowners Association

 Policy Name: Commercial and Modified Vehicle Policy
 Responsible Committee: Traffic and Safety Committee
 Revision: Original
 Date Adopted: February 20, 2008
 Date Revised: September 23, 2009

Purpose
This policy further defines the description of commercial and modified vehicles as
described in section 10.18 of the Red Rock Country Club CC&Rs’, ”Parking and
Vehicular Restrictions”

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit
corporation, shall be empowered to adopt, amend repeal, and/or enforce reasonable Rules
and Regulations pursuant to Article V, section 2 of the Covenants, Conditions and
Restrictions for Red Rock Country Club HOA.

Scope
Commercial vehicles are vehicles that are used primarily for business purposes, and are
subject to certain restrictions when parked within the Properties or the owner’s property.
Modified vehicles are also subject to some restrictions.

Definition
Commercial Vehicle: A vehicle primarily used for a commercial purpose such as
transporting passengers for fare, cargo, tools, materials or equipment or having been built
for a specific commercial function. Some examples include: vehicles displaying
advertisements, magnetic signs, vinyl or painted lettering etc., or the display of a
company name on a vehicle, tool trucks, delivery trucks, panel vans, bucket trucks, buses
and other specialty vehicles, as well as vehicles having ladder or equipment racks, etc.

Utility service, law enforcement and emergency service vehicles, as defined in NRS
116.350 (as amended by AB 129 effective 10/1/09) are excluded from the definition of
Commercial Vehicles and these provisions.

Specifics

   1. No vehicle owned or operated by an Owner (including other occupants) or a
      Tenant may be kept or parked anywhere within the Properties except within the
      garage. Temporary relief from this restriction may be provided per HOA
      Procedure “Temporary Driveway Parking Permit Procedure”.
   2. Temporary relief will not be granted for Driveway Parking for a commercial
      vehicle as defined, unless the Board of Directors grants permission for a specific
      case.
    3. No person shall park, store or keep anywhere within the Properties any large
       commercial vehicle (including but not limited to, any dump truck, cement mixer
       truck, oil or gas truck, delivery truck, bus, truck tractor or similar large
       commercial vehicles).
    4. A marked police vehicle assigned to a law enforcement officer is not defined as a
       commercial vehicle.
    5. Pick up trucks or vans that are deemed commercial vehicles solely because they
       display commercial lettering or signs may be eligible for temporary driveway
       parking per HOA Procedure “Temporary Driveway Parking Permit Procedure”
       if all lettering and signs are covered and no longer visible. All other
       commercial vehicles previously noted are not eligible for temporary driveway
       parking.
    6. No person shall park, store or keep anywhere within the Properties any vehicles
       which are deemed by the Board to be a nuisance.
    7. Except for in garage parking no modified vehicle may be parked in the Properties
       which is in violation of NRS 484.7385 as described below:

NRS 484.7385 Height of vehicle: Maximum ground clearance; exceptions.

    1. A motor vehicle must not be operated on any highway of this State if the lowest portion of its body,
as measured from the surface on which the vehicle stands, exceeds, for passenger cars, 24 inches, and for a
truck or other motor vehicle having manufacturer’s gross vehicle weight rating:

   (a) Of 4,500 pounds or less, 28 inches.

   (b) Of more than 4,500 pounds but less than 7,501 pounds, 30 inches.

   (c) Of 7,501 pounds but less than 10,001 pounds, 32 inches.

    2. The measurement taken to determine compliance with this section must be taken from level ground
to a portion of the body or parts attached to the body which have not been added or altered from the
manufacturer’s original body design.
Red Rock Country Club Homeowners Association
Policy Name: Fine Collection Policy and Procedures
Responsible Committee: Board of Directors
Replaces: January 16, 2008
Policy Adopted: March 19, 2008
Revised: September 23, 2009

Purpose

The Board of Directors for the Red Rock Country Club Homeowners Association (the
“Association”) hereby adopts the following Fine Policy and Procedure for implementation within
the Association, with the capitalized terms having the same meaning as those terms are defined
in the Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for
Red Rock Country Club (the “Declaration”):

Authority

Consistent with the Association’s Governing Documents, and applicable Nevada law, the owner
is responsible for the actions and conduct of any occupants of his or her lot, including, but not
limited to, family members, guests or invitees within the following limitations:
    • An owner can be fined for a violation committed by an invitee or tenant of the unit’s
        owner if: See NRS 116.31031
       a. The Owner participated in or authorized the violation;
       b. Had prior notice of the violation; or
       c. Had an opportunity to stop the violation and failed to do so.
    • A fine may not be imposed against’ a unit’s owner or a tenant or invitee or a unit's owner
       for a violation of the governing documents which involves a vehicle and which is
       committed by a person who is delivering goods to, or performing services for, the unit’s
       owner or the tenant or invitee of a units owner. See NRS 116.31031

In addition, pursuant to Nevada law, the Association has the duty to establish a written
Collection Policy which complies with all applicable federal, state, and local laws, regulations
and ordinances relating to the collection of debt. See NRS 116.3115.

Specifics

Upon receipt of a written complaint from an owner or resident or the observation by a member of
the Board of Directors or management regarding a potential violation of the Governing
Documents, the Association’s Manager or other authorized agent of the Association, acting on
behalf of the Board of Directors, shall issue a notice (“Courtesy Notice”) to the owner regarding
the alleged violation. The Courtesy Notice shall be in writing, and must be signed by a
representative of the Board, the Manager, legal counsel, or some other authorized agent of the
Association. A copy of the Courtesy Notice will be mailed to the unit address and the billing
address, if different.




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1.   The Board of Directors may designate an agent to collect fine payments and administer
     this Fine Policy. Such designated agent may be an officer or director of the Association,
     Manager, bookkeeper, banking institution, Trustee Company, law firm or other
     appropriate agent.

2.   If the alleged violation is not remedied within the time period set forth in the Courtesy
     Notice, the Board of Directors, or any person designated by the Board to act on its behalf,
     may serve a “Notice of Violation” against the owner for an alleged violation of any
     provision of the Governing Documents by the owners or residents, or their family,
     tenants or guests, subject to the provisions contained in NRS 116.31031 (as outlined
     above). A copy of the Notice of Violation may also be mailed to the resident of the lot.
     The Notice of Violation must contain: (i) the description of the violation, (ii) the
     approximate time and place at which the violation was observed, (iii) the amount of the
     fine that may be paid by the owner for the violation, (iv) the name of the person issuing
     the Notice of Violation, and (v) a statement advising the owner of the date, time and
     location of a hearing scheduled with the Board of Directors.


3.   If the nature of the alleged violation is such that, in the sole discretion of the Board of
     Directors, it poses an imminent threat of causing a substantial adverse effect on the
     health, safety or welfare of the owners or residents of the Association, then the
     Association may immediately send a Notice of Violation, as set forth in Section 3 above,
     without first sending the Courtesy Notice required by Section 1. A copy of the Notice of
     Violation will be mailed to the unit address and the billing address, if different.

4.   Any hearing which discusses a violation of the Governing Documents including, without
     limitation, the failure to pay an Assessment, shall be conducted in an executive session of
     the Board of Directors, unless the person who may be sanctioned for the alleged violation
     requests in writing that the hearing be conducted by the Board of Directors at an open
     meeting of the Board. See NRS 116.31085(3)(c) and (4). If the Board of Directors
     concludes, after notice and a hearing, that an owner has violated a provision of the
     Governing Documents, then the Board may impose one or all of the following sanctions:

     a) Fines imposed consistent with NRS 116 and the rules and regulations, if any, adopted
        by the Board;
     b) Suspension of any right to use the Common Elements during the term of the
        violation;
     c) Suspension of the right of the owner to vote on any matters affecting the Association;
     d) A declaration that the owner is not in good standing;
     e) Seek declaratory and injunctive relief against the owner or resident of the lot;
     f) Special Assessments for the actual cost of any common expenses, including
        attorneys’ fees, due to the misconduct of the owner or resident or their family, tenants
        or guests, subject to the provisions set forth in NRS 116.31031 (as outlined above);
        and
     g) Any other legal or equitable remedies available to the Association for said violations.




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5.    Within 2 weeks after the hearing, the Board of Directors shall issue a letter to the owner
      outlining the hearing results, including any penalties imposed by the Board.

6.    The Board may appoint a committee, of not less than three (3) members, to conduct
      hearings on violations and to impose fines and other sanctions pursuant to this policy. If
      the hearing is held before a hearing officer or a committee appointed by the Board of
      Directors, then the Committee or hearing officer conducting the hearing must, within ten
      (10) days after the conclusion of the hearing, make a written recommendation to the
      Board of Directors on what action the Board should take in the violation. Upon receipt of
      the recommendation from the Committee, the Board must act upon the recommendation.

7.    Any fines imposed by the Association, for a violation of the Governing Documents that
      does not pose an imminent threat of causing a substantial adverse effect to the health,
      safety or welfare of the owners and residents of the Association, may not exceed $100 for
      each violation or a total of $1,000, which ever is less. See NRS 116.31031(1).

8.    Any fines imposed by the Association, for a violation of the Governing Documents that
      poses an imminent threat of causing a substantial adverse effect to the health, safety or
      welfare of the owners and residents of the association, must be commensurate with the
      severity of the violation as shall be determined by the Board in accordance with the
      Governing Documents, but is otherwise not subject to the limitation on the amount set
      forth in Section 8 above. See NRS 116.31031(1).

9.    A fine may not be imposed unless: (a) not less than 30 days before the violation the
      person against whom the fine will be imposed had been provided with a written notice of
      the applicable provisions of the Governing Documents that form the basis of the
      violation; and (b) within a reasonable time after discovery of the violation the person
      against whom the fine may be imposed has been provided with: (1) written notice
      consistent with Section 3 above, and (2) a reasonable opportunity to contest the violation
      at the hearing. See NRS 116.31031(2).

10.   If a fine is imposed pursuant to Sections 8 or 9 above and the violation is not cured within
      fourteen (14) days, or within any longer period that may be established by the Board of
      Directors, the violation shall be deemed a continuing violation. Thereafter, the Board
      may impose an additional fine for the violation for each seven (7) day period or portion
      thereof if the violation is not cured. Any additional fine may be imposed without notice
      and an opportunity to be heard. See NRS 116.31031(5).

11.   Any fine which is not paid within thirty (30) days of notice of the fine shall be considered
      past due shall result in a late fee being imposed in the amount of $15.00 per month until
      paid in full plus an administrative fee in the amount of $25.00 for the processing of the 30
      Day Late Letter.

12.   If any fine is not paid within thirty (30) days of notice of the fine, then the Association
      may also record a lien against the lot for the value of the fine and the cost of collection.

13.   If the past due fine is for a violation that threatens the health, safety or welfare of the
      residents, the limitations on the cost of collections do not apply. Additionally, if the
      violation giving rise to the fines is of such a nature as to pose an imminent threat of
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      causing a substantial adverse effect on the health, safety or welfare of the owners and
      occupants in the Association, then in addition to recording a lien against the Lot, the
      Association may initiate foreclosure proceedings against the Lot. See NRS
      116.31162(4)(a).

14.   Cost of collection includes, without limitation, any collection fee, filing fee, recording
      fee, referral fee, fee for postage or delivery, and any other fee or cost that an Association
      may reasonably charge to the unit’s owner for the collection of a past due fine. The term
      does not include any costs incurred by an Association during a civil action to enforce the
      payment of a past due fine.

15.   Outstanding balance means the amount of a past due fine that remains unpaid before any
      interest, charges for late payment or costs of collecting the past due fine are added.

16.   If an owner has outstanding fines with equal or exceed $250.00 arising from violations of
      the governing documents that do not threaten the health, safety or welfare of owners or
      the Association, then, absent extenuating circumstances, in the sole discretion of the
      Board, the Association shall pursue the collection thereof by authorizing its designated
      agent to issue late notices, notices of intent to lien and lien notices and record liens.
      Additionally, the Board may accelerate the collection process of in its sole discretion
      such action is in the best interest of the Association.

17.   With regard to outstanding balances for fines that do threaten the health, safety and
      welfare of the owners or residents of the association, the Association shall follow the
      protocol outlined in its most current Delinquent Assessment Policy with regard to the
      timing of notices and the cost of collection associated with those notices.

18.   The remedies and penalties set forth herein are cumulative in nature and do not prevent
      the Association from taking all necessary legal action to enforce any violations of the
      Association’s governing documents in any manner, including but not limited to, by
      seeking declaratory or injunctive relief and/or by proceeding through arbitration pursuant
      to NRS 38.




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                      RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION
                          COMMUNITY STANDARDS SCHEDULE OF FINES
                                    REVISED: 08-27-2009

                                    HEALTH, SAFETY & WELFARE VIOLATIONS
If the violation poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the
units' owners or residents of the community, the amount of the fine must be commensurate with the severity of the
violation and must be dermined by the Executive Board in accordance with the governing documents. The following
are considered a Health, Safety and Welfare violation: Improperly-maintained and abandoned swimming pools which
are capapable of contributing to the spread of waterborned diseases and improperly-maintained lots which include
brown shrubbery, trees and grass are capable of being a fire hazard. (NRS 116.31031)
Bypass the violation letter and send a Hearing Notice. At the hearing, a fine of $500.00 may be imposed and a certified
Hearing Outcome letter will be sent to the Homeowner. If the violation is not cured within 14 days of the hearing result
notification, the violation shall be deemed a continuing violation. There after, an additional fine shall automatically be
imposed for each 7 day period. This additonal fine will be imposed without notice or opportunity to be heard, per
Nevada law. (Unmaintained Pool and Landscape Policy)
                  VIOLATION                                                  VIOLATION FINE
                       Green-Stagnant Swimming Pool-The Health Department will be contacted
First Offense                                          Hearing Notice
Hearing Fine                                           $500.00
If not in compliance after 14 days of the
hearing result notification, the violation shall be    Weekly fines of $100.00
deemed a continuing fine violation.
                                 Unmaintained Lot: Brown Plant Vegetation/Fire Hazard
First Offense                                          Hearing Notice
Hearing Fine                                           $500.00
If not in compliance after 14 days of the
hearing result notification, the violation shall be    Weekly fines of $100.00
deemed a continuing fine violation.

                                              PROPERTY MAINTENANCE
No improvement anywhere within the Properties shall be permitted to fall into disrepair, and each improvement shall at
all times be kept in good condition and repair. If any Owner or Resident shall permit any improvement, which is the
responsibility of such Owner or Resident to maintain, to fall into disrepair so as to create a dangerous, unsafe,
unsightly or unattractive condition, The Board, after consulting with the ARC, and after affording such Owner or
Resident reasonable notice, shall have the right but not the obligation to correct such condition, and to enter upon such
Owner's Unit, for the purpose of so doing, and such Owner and/or Resident shall promptly reimburse the Association
for the cost thereof. (CC&R's, Section 10.6)
                  VIOLATION                                                     VIOLATION FINE
Address and Exterior Lights
First Offense                                            Friendly Reminder
Second Offense                                           Friendly Reminder
Third Offense                                            Violation Letter
If not in Compliance after 2 weeks                       Hearing Notice
Hearing-Fine                                             $100.00
If not in Compliance after 14 days of the
hearing result notification, the violation shall be      Weekly fines of $100.00
deemed a continuing fine violation.

                                       Unmaintained Lot-Dead Plants-Grass-Trees
First Offense                                           Violation Letter
If not in Compliance after 2 weeks                      Hearing Notice
Hearing-Fine                                            $100.00
If not in Compliance after 14 days of the
hearing result notification, the violation shall be           Weekly fines of $100.00
deemed a continuing fine violation.

                                                      Painting: Fence, Gates
First Offense                                                 Violation Letter
If not in Compliance after 2 weeks                            Hearing Notice
Hearing-Fine                                                  $100.00
If not in Compliance after 14 days of the
hearing result notification, the violation shall be           Weekly fines of $100.00
deemed a continuing fine violation.

                                 Maintenance Repairs: Broken Windows, Lights, Gates
First Offense                                          Violation Letter
If not in Compliance after 2 weeks                     Hearing Notice
Hearing-Fine                                           $100.00
If not in Compliance after 14 days of the
hearing result notification, the violation shall be    Weekly fines of $100.00
deemed a continuing fine violation.

                                            MISCELLANEOUS VIOLATIONS
                                                    Holiday Decorations
Seasonal Decorations are permitted 30 days prior to the day of celebration and must be taken down within 3 weeks
after.
                   VIOLATION                                                    VIOLATION FINE
First Offense if one month after celebration              Friendly Reminder
If not in Compliance after 2 weeks                        Hearing Notice
Hearing-Fine                                              $100.00
If not in Compliance after 14 days of the
hearing result notification, the violation shall be       Weekly fines of $100.00
deemed a continuing fine violation.

                            Animal/Pet Concerns: Barking-Roaming at large-Pet Waste
Pets shall be restrained from depositing any type of waste in all common areas as well as another resident's property.
Residents shall ensure that pets do not constitute a nuisance to other residents through prolonged noise or constitute
a danger to other residents and their pets through harassing/threatening/attacking behaviors.
                   VIOLATION                                  VIOLATION FINE
First Complaint                                               Friendly Reminder
Second Complaint                                              Violation Letter
If not in Compliance after one week and still                 Hearing Notice
receiving complaints.
Hearing-Fine                                                  $100.00
If not in Compliance after 14 days of the
hearing result notification and still receiving
                                                              Weekly fines of $100.00
complaints the violation shall be deemed a
continuing fine violation.

                                                         Nuisances
No rubbish, clippings, refuse, scrap lumber or metal; no grass, shrub or tree clippings; and no plant waste, compost,
bulk materials, or other debris of any kind; shall be placed or permitted to accumaulate anywhere within the Properties,
and no odor shall be permitted to arise therefrom so as to render the Properties or an portion thereof unsanitary,
unsightly, or offensive. No noxious or offensive activities (including, but not limited to the repair of motor vehicles) shall
be carried out on the Properties. No noise or other nuisances shall be permitted to exist or operate upon any portion of
a Unit so as to be offensive or detrimental to any other Unit or to occupants thereof, to the Common Elements, or to
the Country Club and/or Golf Courses or golfers. (CC&R's, Section 10.5)
                   VIOLATION                                                       VIOLATION FINE
First Complaint                                               Friendly Reminder
Second Complaint                                       Violation Letter
If not in Compliance after one week and still          Hearing Notice
receiving complaints.
Hearing-Fine                                           $100.00
If not in Compliance after 14 days of the
hearing result notification and still receiving
                                                       Weekly fines of $100.00
complaints the violation shall be deemed a
continuing fine violation.
                                                         Signage
No signs of any kind may be installed or displayed to public view on any portion of the properties, or on any public
street abutting the Properties, without the prior written approval of the ARC, except: 1 "For Sale" sign or "For Rent"
signshall be allowed per lot and can be placed in the window or front yard where visible to persons approaching the
house. Vehicles are not allowed to display "For Sale" signs.
                   VIOLATION                                                 VIOLATION FINE
First Complaint                                        Friendly Reminder
Second Complaint                                       Violation Letter
If not in Compliance after one week and still          Hearing Notice
receiving complaints.
Hearing-Fine                                           $100.00
If not in Compliance after 14 days of the
hearing result notification and still receiving
                                                       Weekly fines of $100.00
complaints the violation shall be deemed a
continuing fine violation.

                                              Trash and Recycling Containers
The containers shall be exposed to view of the public, or neighboring units, only when set out for a reasonable period
of time (not to exceed twelve (12) hours before and after scheduled trash collection hours).
                   VIOLATION                                                   VIOLATION FINE
First Offense                                            Violation Letter
If not in Compliance after 2 weeks                       Hearing Notice
Hearing-Fine                                             $100.00
If not in Compliance after 14 days of the
hearing result notification, the violation shall be      Weekly fines of $100.00
deemed a continuing fine violation.

                                                    No Window Coverings
New homeowners will be allowed up to 30 days from close of escrow to have permanent window coverings installed
on all windows, including side load garage windows. Temporary window coverings must be replaced with permanent
window coverings within 30 days of close of escrow.
                  VIOLATION                                                     VIOLATION FINE
First Offense                                             Violation Letter
If not in Compliance after 2 weeks                        Hearing Notice
Hearing-Fine                                              $100.00
If not in Compliance after 14 days of the
hearing result notification, the violation shall be       Weekly fines of $100.00
deemed a continuing fine violation.

                                                    Sports Apparatus
Jungle gyms, play equipment or other sports apparatus whether temporaray or permanent, shall not be constructed,
erected or maintained without prior written consent of the ARC. No basketball hoops or other sports apparatus shall be
placed or permitted in the front yard, side yard or driveway of any Lot.
                  VIOLATION                                                     VIOLATION FINE
First Offense                                             Violation Letter
If not in Compliance after 2 weeks                        Hearing Notice
Hearing-Fine                                              $100.00
If not in Compliance after 14 days of the
hearing result notification, the violation shall be       Weekly fines of $100.00
deemed a continuing fine violation.
Red Rock Country Club Homeowners Association
Policy Name: Delinquent Assessment Policy
Responsible Committee: Board of Directors
Policy Date: June 5, 2001
Policy Revision: October 26, 2005
Policy Revision: April 18, 2007
Policy Revision: August 19, 2009

Purpose

The Board of Directors for the Red Rock Country Club Association (the “Association”) hereby
adopts the following Delinquent Assessment Policy and Procedure for implementation within the
Association, with the capitalized terms having the same meaning as those terms are defined in
the Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Red
Rock Country Club (the “Declaration”):

Authority

Pursuant to the Declaration and applicable Nevada law, the Association has a duty to levy
Annual Assessments for Common Expenses, Capital Improvement or Reconstruction
Assessments, and Special Assessments, as defined in the Declaration, and reserve assessments as
set forth in NRS 116 (collectively the “Assessments”), sufficient to perform its obligations under
the governing documents and Nevada law. See Declaration, Article 6, Section 6.1 and NRS
116.3102(1) (b) and 116.31152(1). Annual Assessments in an amount sufficient to pay the
common expenses pursuant to the Association’s budget, are levied annually and are payable
during the year in monthly installments. In addition, pursuant to Nevada law, the Association has
the duty to establish a written Collection Policy which complies with all applicable federal, sate,
and local laws, regulations and ordinances relating to the collection of debt. See NRS 116.3115.

Specifics

Each Assessment or charge is the personal obligation of the owner at the time the assessment or
other sums are levied. See Declaration, Article 6, Section 6.1. In addition, the assessment is also
a charge or lien upon the owner’s lot. See Declaration, Article 6, Section 6.1. Recordation of the
Declaration constitutes record notice and perfection of the Association’s lien. No further
recordation of any claim or lien for any unpaid Assessment is required. See NRS 116.3116(4).

The Association will give the owners notice of any increase in the Annual Assessments, through
the budget process set forth in the Association’s Governing Documents and Nevada law, or as
otherwise required by Article 6, Sections 6.4, of the Declaration, at least thirty (30) days in
advance of each Annual Assessment period. See NRS 116.31151. Notice will be sent by first-
class mail to the addresses on the Membership register as of the date the notice is issued. It is the
responsibility of each owner to advise the Association of any changes in their mailing address.
The Board of Directors may elect from time to time to provide additional periodic statements of
Assessments and charges, but failure to transmit such additional statements does not relieve the
owners of the obligation to pay Assessments.




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The Board of Directors may designate an agent to collect Assessment payments and administer
this Assessment collection policy. Such designated agent may be an officer or director of the
Association, Manager, bookkeeper, banking institution, trustee company, law firm or other
appropriate agent.

The Board of Directors must approve any and all write-offs of bad debt; and the designated agent
(Community Manager) must provide timely updates and reports as necessary.

Unless otherwise specified by the Board, an Assessment is due on or before the first day of the
month for which it is due.

Any installment of an Assessment, that is not received by the Association within thirty (30) days
after the due date shall result in a late fee being imposed in the amount of $15.00 per month plus
an administrative fee in the amount of $25.00 for the processing of the 30 Day Late Letter. See
Declaration, Article 7, Section 7.1 and NRS 116.3102(1)(k).

Any installment of an Assessment, which is not received by the Association within sixty (60)
days after the due date, shall bear interest at a rate equal to the prime rate at the largest bank in
Nevada as ascertained by the Commissioner of Financial Institutions on January 1 or July 1, as
the case may be, immediately preceding the date the assessment becomes due, plus 2 percent.
The rate must be adjusted accordingly on each January 1 and July 1 thereafter until the balance is
satisfied. See NRS 116.3115.

Payments received by the Association shall be applied first to late fees, interest, and costs of
collection, including attorney fees and then any past due Assessments. However, the Association
may not apply any Assessment, fee or other charge that is paid by an owner toward a fine or
monetary penalty imposed by the Association against the owner, without the owner’s consent.
See NRS 116.310315.

In addition to all other remedies available to the Association, if any installment of an Assessment
is not received by the Association within thirty (30) days after the due date, then the Association
may transmit a letter to the owner notifying him of the delinquency and requesting payment
thereof (the “Notice of Intent”). An administrative fee in the amount of $65.00 shall be charged
to the homeowner’s account for the preparation of the Notice of Intent to Lien Letter. The Notice
of Intent shall be sent by certified mail; return receipt requested and shall include, at a minimum,
the following.

                   (a)       the fact that the installment is delinquent;

                   (b)     the amount of the delinquency, including any charges
                   associated with the delinquency including, but not limited to,
                   interest, late fees, attorneys’ fees or other costs of collection;

                   (c)     the action that is required to be taken by the owner to cure
                   the default;




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                   (d)    the date, not less than thirty (30) days from the date the
                   Notice of Intent is mailed to the owner, by which such default may
                   be cured;

                   (e)     that the failure to cure to the default on or before the date
                   specified in the Notice of Intent may result in acceleration of the
                   balance of the installment of the Assessments for the then current
                   fiscal year; and

                   (f)    what action the owner may take to cure the default after
                   acceleration.

If the owner fails or refuses to pay the balance due and owing to the Association as set forth in
the Notice of Intent, then not less than thirty (30) days after the Notice of Intent is mailed to the
owner, then the Association may record a lien against the lot owned by the owner (the “Lien”).
The Lien must specify:

                   (a)       the amount of Assessments and other sums due;
                   (b)       a description of the lot upon which the lien is imposed;
                   (c)       the name of the record owner of the lot;
                   (d)       the fact that the installment is delinquent;
                   (e)       the action required to cure the default;
                   (f)       the date, not less than thirty (30) days from the date the notice is mailed to
                             the owner, by which such default must be cured; and
                   (g)       that failure to cure the default on or before the date specified in the notice
                             may result in acceleration of the balance of the installments of such
                             Assessment for the then-current fiscal year and sale of the lot.

         See NRS 116.31162(1).

If the owner fails or refuses to pay the balance due and owing to the Association as set forth in
the Lien, including any interest, late charges, attorneys’ fees or fees and costs of collection, then
not less than thirty (30) days after the Lien is recorded and mailed to the owner, in the manner
prescribed by Nevada law, then the Association may initiate foreclosure proceedings against the
Lot by recording a notice of default (the “Notice of Default”) with the County Recorder. The
Notice of Default shall contain the same information as the Notice of Lien, as well as any other
information required by Nevada law, and shall be mailed in the manner prescribed by Nevada
law. See NRS 116.31162.

If the owner fails or refuses to pay the balance due and owing to the Association as set forth in
the Notice of Default, including any interest, late charges, attorneys’ fees or fees and costs of
collection, then not less than ninety (90) days after the Notice of Default is recorded and mailed
to the owner and any other parties entitled to notice under Nevada law, in the manner prescribed
by Nevada law, then the Association may schedule a sale of the lot by issuing a notice of sale
(the “Notice of Sale”). The issuance of the Notice of Sale, as well as publishing and posting of
the Notice of Sale shall be in compliance with Nevada law. See NRS 116.311635.



03092-00/0854 GOV POLICY Delinquent Assessment Policy 2009-08-19.doc                                      3
Subject to applicable provisions of Nevada law, the Association has no obligation to accept
partial payment on a delinquent Assessment account. An owner may petition the Board of
Directors in writing for a payment agreement to allow the owner to make periodic partial
payments on the entire balance of the Assessment account. However, the Association has no
obligation to enter into such a payment agreement. If the Board of Directors agrees to enter into
a payment agreement and to accept a reasonable payment plan with the owner, then the terms of
any payment shall include, at a minimum:

                   (a)       the owner staying current on all future accruing
                             Assessments as they come due; and
                   (b)       paying off the past due balance in installments over a term
                             not to exceed 6 months.

Any agreement entered into with the owner shall be reasonable, as determined in the sole
discretion of the Board, and for the sole purpose of assuring that the best interest of the
Association is served. The payment agreement shall be in writing and a provision shall be
included that failure to meet any terms of the agreement shall give the Board the right to
immediately continue the collection/lien/foreclosure process without further notice to the owner.

A Release of Lien will not be recorded until the entire balance of the owner’s Assessment
account is paid. All charges incurred in recording a Release of Lien, including reasonable
attorney’s fees, will be charged to the owner’s Assessment account.

At any time that the Association or its designated agent receives a check dishonored by the bank
for any reason, a charge of $35.00 shall be imposed and added to the owner’s account. The
Board of Directors may immediately proceed with the collection process if the entire past due
Assessment balance is not paid within 10 days after notice of the dishonored check is sent to the
owner. The Association may also seek any other damages, in accordance with Nevada law.

After the second occurrence of a returned check, only cashier’s checks or money orders will be
accepted or future payments for six (6) months. After the six-month period, personal checks
may again be submitted. However, after reinstatement, if there is one (1) subsequent occurrence
of a returned check, then all future payments shall be by cashier’s checks or money orders.

If the owner questions the accuracy of the calculation of an account or the amount charged to the
Assessment account, an objection to the specific charges must be received by the Board of
Directors within 30 days of the date notice was received by the owner of the charge or balance.
The disputed amount may remain unpaid during the investigation, but undisputed portions of the
account must be paid before the delinquency date in order to avoid collection charges. No action
will be taken to collect the disputed amounts until completion of the investigation and the Board
of Directors makes a decision. The owner must provide the following information in writing
regarding any dispute:

                   (a)       The owner’s name, mailing address, and account number;
                   (b)       The exact dollar amount in dispute or in error.
                   (c)       For each charge in dispute, an explanation of the reasons
                             the owner believes there is an error, with sufficient detail


03092-00/0854 GOV POLICY Delinquent Assessment Policy 2009-08-19.doc                            4
                             such as dates, names, and check numbers, so that the
                             dispute may be investigated efficiently and effectively,
                             must be provided.
                   (d)       Copies of checks (both front and back), letters or other
                             documents applicable to the account and claimed error
                             must accompany the written objection.

The Association reserves the right to avail itself of any other remedy permitted by law and the
Association’s Governing Documents to collect Assessments and related costs and charges,
including but not limited to bringing an action in Small Claims, Justice or District Court. Such
remedies may be taken in addition to or in lieu of any action already taken, and commencement
of one remedy shall not prevent the Association from electing at a later date to pursue another
remedy.

Owners should respond in writing or make payments to the address as directed by the designated
agent. If no address is given, responses and petitions should be mailed to the Association at the
following address:

                                           Board of Directors
                              Red Rock Country Club Homeowners Association
                                        1988 Alcova Ridge Drive
                                          Las Vegas, NV 89135




03092-00/0854 GOV POLICY Delinquent Assessment Policy 2009-08-19.doc                            5
Red Rock Country Club Homeowners Association
 Policy Name: Towing Policy
 Responsible Committee: Traffic and Safety
 Date Adopted: April 15, 2009


Purpose
Define the Towing Policy for improperly parked vehicles and trailers that have been previously cited
for a parking violation and have been identified as chronic parking violators. This policy addresses
Vehicles, RVs, Boat trailers, Motor Homes, and General Trailers.

Authority
Section 10.19 of the Declaration of Covenants, Conditions and Restrictions and Reservation of
Easements for Red Rock Country Club defines the Parking and Vehicular Restrictions related to
recreational, trailer and passenger vehicles. Section 5.2 of the Declaration of CC&R’s empowers the
Board of Directors of the HOA to adopt, amend, repeal and/or enforce reasonable and uniformly
applied Rules and Regulations, which shall not discriminate among Members, for the use and
occupancy of the properties. Further NRS 116.3102.1.(s) outlines how HOA’s are to apply a towing
policy against violating vehicles/trailers found in the community.
Scope
This policy applies to towing of Vehicles, Boat trailers, General trailers, RV’s, and Motor Homes,
belonging to the Red Rock owner, occupant, tenant, guest, invitee or family member.
Specifics
Residents and Guests must park vehicles and trailers that are outdoors in accordance with the
following policies:
       Commercial and Modified Vehicle Policy
       Driveway Parking Policy
       RV, Boar, Motor Home and Trailer Policy
       Safety Enforcement Policy

Individuals violating any parking policy may be cited and fined, after notice and hearing as required by
law.

Individuals in a continued parking violation status are also subject to having the vehicle or trailer
towed at their expense.
 Towing – In accordance with NRS 116.3102.1.(s), If a vehicle or trailer is improperly parked as
described in the Commercial and Modified Vehicle policy, the Driveway Parking Policy, the RV, Boat,
Motor Home and Trailer Parking policy, or the Safety Enforcement Policy, the association will post
written notice in a conspicuous place on the vehicle/trailer or provide oral or written notice to the
owner or operator of the vehicle/trailer at least 48 hours before the association may direct the removal
of the vehicle, unless the vehicle:

- Is blocking a fire hydrant, fire lane or parking space designated for the handicapped; or poses an
imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units'
owners or residents of the common interest community. In these cases immediate towing will be
enforced.
- If the violating vehicle is moved within the 48 hour period after posting of the notice, but is again
parked in such a manner as to violate the association’s policy, then the violating vehicle will be
deemed to be in violation for the period exceeding 48 hours and the violating vehicle may be towed.
Additionally, any repeated violation within a six (6) month period from the date of the original notice
will without further notice to the owner, occupant, tenant, guest, invitee or family member of the
forgoing cause the violating vehicle to be towed. This provision is adopted to prevent the violation-
cure-violation cycle.

- The owner of a unit is responsible for providing notice of the rules, as well as any other provisions of
the associations governing documents, to the owners, tenants, guests, and invitees, and, for the
purposes of this policy, notice to an owner shall be deemed to be notice to that owners tenants, guests
or invitees.

- The Board of Director’s have retained Custom Towing as its tow care operator and authorize Custom
Towing to remove vehicles for the association that are parked in violation of this policy.
Red Rock Country Club Homeowners Association

 Policy Name: Guest and Vendor Access Tag Policy
 Responsible Committee: Traffic & Safety
 Date Adopted: February 19, 2009
                                                                  FINAL
Purpose
This document defines the process, conditions, and restrictions for any guests and/or vendors who may be
authorized entry by a resident to a residence, but who do not display a valid license plate, valid temporary tag
on the vehicle or the driver of a vehicle does not possess a valid driver’s license when stopped on property.

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation, shall be
empowered to adopt, amend repeal, and/or enforce reasonable Rules and Regulations pursuant to Article V,
section 2 of the Covenants, Conditions and Restrictions for Red Rock Country Club HOA.

Scope
No access tags will be issued for vehicles to enter the community of Red Rock without a valid license plate or
temporary tag displayed. Additionally, any vehicle driver stopped inside the community must present a valid
drivers license to the patrol officer. This is the minimum security information required to protect the residents
and HOA and is also designed to maintain the desired security level within the private community of Red Rock.
All guest and/or vendor vehicles that enter, visit and work within the community must be properly licensed.

Residents are encouraged to remind their guests and vendors to properly display license plates and to always
carry a valid driver’s license when attempting to work or visit within the community of Red Rock.

Specifics
This policy applies to residents who may authorize a guest or vendor to their residence and then when the guest
or vendor presents themselves at the gate houses for the entry process they do so in a vehicle which has no
visible license plate, nor valid temporary tag. In these cases access tags will not be issued for these vehicles.
Additionally, if there is any vehicle driver stopped inside the community and subsequently the driver cannot
supply a valid driver’s license, in these cases the driver and vehicle will be escorted off property.




                                                                                                               1
Red Rock Country Club Homeowners Association
   Policy Name: Unclaimed Property Policy
   Responsible Committee: Budget and Finance
   Adopted: July 16, 2008

Purpose
This document is intended to be the Association's Unclaimed Property Policy and is subject to
periodic review by management, the Finance Committee and the Board of Directors (the
"Board") of the Red Rock Country Club Homeowners Association (the                 "1-lOA" or
"Association"). Changes to this Policy must be approved by the Board.

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation,
shall be empowered to adopt, amend repeal, and/or enforce reasonable Rules and Regulations
pursuant to Article V, section 2 of the Covenants, Conditions and Restrictions for Red Rock
Country Club HOA.

Background
Chapter 1 20A of the Nevada Statutes addresses the disposition of unclaimed property held by a
business association. The HOA is considered a business association as defined by NRS
i 20A,040. This Statute, as it applies to the HOA, generally requires that property remaining
unclaimed for more than 3 years after it became payable be presumed abandoned and must be
remitted to the State. From that point forward the State is responsible for public
communicationlnotice regarding the funds and is responsible for the safekeeping of the funds.
The HOA is also relieved of any liability with respect to the abandoned property.

Based on the current operations of the 1-lOA, the possibility for abandoned property primarily
exists in the form of outstanding checks, builder bond deposits, homeowners' accounts with
credit balances and any unidentified remittances that have been received. The Statute also
requires the HOA to exercise due diligence to ascertain the whereabouts of the owner and take
the necessary steps to prevent abandonment from being presumed.

Annual Reports are required to be filed with the State Treasurer (as the Administrator of the
unclaimed property) whether or not the HOA is holding property presumed to be abandoned.
The Statute provides for criminal penalties for willful noncompliance with the requirements of
the Statute.

Seo ne
This policy sets forth guidelines and procedures for compliance with the requirements of
NRS 120A and includes procedures designed to prevent or minimize abandoned property.


Specifics
Outstanding Checks:

Once a check has been outstanding for more than 90 days, the Community Manager will attempt
to contact the payee in order to determine why the check has not been cashed. If the check has
                                                                                            I
been lost, a stop payment order for the original check should be processed and a replacement
check issued. If the payee has not cashed the check for some specific reason, such as a dispute
or question regarding the amount, the Community Manager will attempt to resolve the issue.
The attempts to clear old outstanding checks should be documented and periodically presented to
the HOA's Finance Committee for review.

If the efforts to clear the old outstanding checks are unsuccessful or if the payee can not be
located, the Community Manager will stop payment on the check, restore the funds to the HOA's
cash balances and credit the liability account "Liability for Unclaimed Property". An inventory
of the liability account shall be maintained and include the following information required by
NRS 120A.250:
             - Nature and description of the unclaimed property
             - Date the property became payable
             - Name of the owner and his/her last known address
Builder Bond Deposits:

The Community Manager will periodically monitor the inventory and status of builder bond
deposits. Once the requirements of the builder bond have been satisfied, a refund check will be
issued in a timely manner. For builder bond deposits that are more than two years old, the
Community Manager will assess the current status of the related projects and prepare a summary
for review by the Finance Committee. An assessment will then be made as to the likelihood of
the deposit being abandoned and appropriate steps taken to prevent abandonment based on the
facts and circumstances. If a determination is ultimately made that the deposit has been
abandoned, then the balance of the deposit should be transferred from the Builder Bond Deposit
liability account to the Liability for Unclaimed Property Account with the same documentation
as described above

Homeowners Credit Balances:

Note: There are a number of homeowners who choose to pay their assessments in advance which
results in homeowner' s credit balances.

At least annually, the Community Manager should review the detail listings of "prepaid
assessments". For any homeowner whose credit balance exceeds the total of 1 year' s
assessments, the Community Manager will contact the homeowner to confirm his/her knowledge
of the advance payment and his/her desire to keep such fluids on deposit.

Unidentified Remittances:

Should the HOA receive any unidentified remittances, such receipt should be credited to the
"Liability for Unclaimed Property" until such time as the remittance can be properly identified
and reallocated to the appropriate account. If such remittance can not be identified within 3
years, it should be considered abandoned property and transferred to the State Treasurer when
the Annual Report required by NRS 1 20A is submitted.


Annual Report:

Annually the Community Manager will review the inventory of Unclaimed Property and, based
on the age and status of these items, will prepare the Annual Report required by either
NRS12OA.250 or NRS12OA,270 as is appropriate in the circumstances.



                                                                                             2
Red Rock Country Club Homeowners Association

 Policy Name: Electronic Notice Policy
 Responsible Committee: Board of Directors
 Date Adopted: June 18, 2008



Purpose
To provide an avenue for owners to obtain communications and notices from the HOA in
electronic format rather than by way of United States Postal Service in accordance with the
provisions of NRS 116.

Authority
Section 20.12 of the Declaration of Covenants, Conditions and Restrictions and Reservation of
Easements for Red Rock Country Club outlines the intent to have the Declaration be in all
respects consistent with, and not in violation of, applicable provisions of NRS Chapter 116.

Scope
Provide a process for providing communications and other notices to homeowners by was of
electronic mail as provided for in the governing documents of the HOA, and Nevada State Law.

Specifics
Execution of the Electronic Acceptance Notice as it may amended from time to time.




Board of Directors - Red Rock Country Club Homeowners Association

ADOPTED this 18th day of June 2008, by the Board of Directors.




                                                                                           1
      RED ROCK COUNTRY CLUB HOMEOWNERS ASSOCIATION
         ELECTRONIC ACCEPTANCE OF NOTICE FOR ALL
              COMMUNICATIONS FROM THE HOA


KNOW ALL MEN BY THESE PRESENTS: That I /we,

                                                                                                  ,
                                         Please print name(s)

the undersigned (jointly and severally if more than one, hereinafter collectively “Member”),
certify that I am a member of the Red Rock Country Club Homeowners Association
(“Association”) by virtue of my ownership of the property listed below.

As a member of the Association, I understand I am entitled to certain notices (“notices”) from
the Association, including but not limited to notices of the Board or members meetings. I hereby
authorize the Association to send me electronic notices (i.e. Notice by E-mail) in lieu of mailed
notices to which I am entitled until and unless I withdraw this request by written notice to the
Association. I acknowledge that if my property is owned by more than one person or by an
entity, I have the right to bind all owners or entities.

My current property address located within the Association is:



My current mailing address is:




I understand that I have the responsibility to advise the Association of any changes to the E-mail
address as shown below. Until I advise the Association of any such change or withdraw this
authorization, the Association may send me electronic notices in lieu of mailed notices pursuant
to NRS 116.3107 Section 3.

The E-mail address that I am requesting electronic notification through is:


  (Please ensure that the address is typed or written legibly to enable proper identification and input)


SIGNED AND AGREED this                   day of                                   , 20            .


Signature                                                Signature



                                                                                                           2
Red Rock Country Club Homeowners Association
 Policy Name: Record Retention Policy
 Responsible Committee: Budget and Finance
 Revision: Original
 Date Adopted: April 16, 2008



Purpose
This policy governs the revision history, archiving and destruction management of all
documents originated by the Red Rock Country Club Homeowners Association of Las
Vegas, Nevada. This policy also provides guidance for retaining and storage of
documents not originated by RRCCHOA, but which should be protected because they are
important to the operation of RRCCHOA.


Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit
corporation, shall be empowered to adopt, amend repeal, and/or enforce reasonable Rules
and Regulations pursuant to Article V, section 2 of the Covenants, Conditions and
Restrictions for Red Rock Country Club HOA.

Scope

The scope of this document shall include the following requirements:

   1. How to indicate revisions of RRCCHOA documents including Policies,
      Procedures, CC&R’s etc.
   2. How long, how, and where to store both paper and electronic records, including
      who has the responsibility to organize and catalogue them so they can be
      recovered with relative ease.
   3. How records should be destroyed when their retention period has expired.
   4. The circumstances under which this policy should be suspended, such as when a
      lawsuit is anticipated or in progress, a subpoena has been served, or an
      investigation is underway.
   5. The individuals responsible for monitoring compliance, and updating the policy.


Specifics

All documents originated by the RRCCHOA will have assigned retention times and shall
be destroyed at the end of this time or as soon after as practically possible. Documents
may be archived offsite in a secure facility, within 60 miles of the association and in
Clark County, but must be accessible at the RRCCHOA principal office within a


                                                                                        1
reasonable period of time. Draft documents and copies of original documents shall be
destroyed at the end of their useful life, which shall be no longer that the retention
schedule for the original document. All RRCCHOA documents must have an origination
date, which determines the beginning of the retention period. Any revision of a document
must be noted and the retention period for the revised document will start at the revision
date. For some documents (see schedule) the original and all revisions must be retained.
These requirements apply to both paper and electronic records. Hard drive information
may be deleted if either paper outputs are made or electronic storage media is used (i.e.
DVD, CD, flash memory) archived, and kept for the required retention period.

Destruction of paper documents shall be by shredding, bagging, and then may be made
available for standard trash pickup. Destruction of electronic documents shall be by data
deletion from hard disks and reformatting/destruction of removable disks. Before
disposal of any computer hard disk that may contain RRCCHOA records, it must be
completely electronically erased by using Board approved software, or preferably,
physically destroyed.

If other parties are holding documents requiring retention such as CCMC central office,
legal counsel, etc. they shall be made aware of this document retention policy by the
onsite RRCCHOA Manager of CCMC. The onsite manager shall have a system in place
to collect all available documents from remote sites on an annual basis. If certain
documents are not available for collection then the onsite manager must communicate
this to the Secretary of the Board and outline the plan to ensure retention for the
required period. Six months prior to the retained documents due date for destruction, the
party responsible for the destruction shall inform the Secretary of the Board or his
designee of the impending destruction. The Secretary will have 2 months from being
informed to rescind the destruction order.

The onsite Manager of CCMC shall have the responsibility to ensure that document
management procedures are in place both at the on site and off site locations where
retained documents are kept to assure that the policy’s intent of efficient document
retrieval and effective document destruction is followed

The Secretary of the Board (or delegate) is the primary person responsible for
implementing this policy, must conduct an annual audit of one or more categories of
records, and issue a written report of compliance to the Board. An audit may be initiated
at any time by the President of the Board or a majority of the RRCCHOA Board of
Directors to determine compliance with this policy.

The audit should include, as a minimum, a review that the correct documents are being
retained, revisions are correct, and the document management procedures for efficient
retrieval are in place. Documents not in compliance shall be scheduled for destruction as
soon as practically possible. .

An original document shall be defined as any final record of the RRCCHOA created in
either a paper or electronic form by the Board of Directors of RRCCHOA, any member



                                                                                            2
or members of the Board of Directors acting for the RRCCHOA, member committees
chartered by the RRCCHOA board or by a legal agent of RRCCHOA such as a property
management company, legal, or financial services. Documents created by companies or
individuals performing other contractual service for the RRCCHOA shall not be defined
as originated by the RRCCHOA.

Correspondence received by the RRCCHOA but not originating within the RRCCHOA
will not be considered to be documents of the RRCCHOA. Equipment operating
manuals, insurance policies, warranties, development brochures and maps, developer
literature, and all other documents not meeting the definition of RRCCHOA original
document may be disposed at the end of their useful life. Non-original documents such
as these are not owned by RRCCHOA, and RRCCHOA has no obligation to retain or
make available these documents. Marginalia in original documents should be avoided,
but when occurring must comply with this policy.

Time periods may be extended for select documents by the RRCCHOA Board of
Directors when a lawsuit is anticipated or in progress, a subpoena has been served, or the
Board of Directors has been informed that an investigation is underway.

This policy is intended to comply with the legal requirements of the state of Nevada and
the United States Government.




                                                                                           3
                             Retention Schedule



Record                                  Located   Retention Period?
                                        (Y/N)?


DOCUMENTS
Ownership/Membership Records                      PERMANENT
Deeds, Plats, Maps                                PERMANENT
Governing Documents – Declaration,
Covenants, Conditions & Restrictions
                                                  PERMANENT
(CCR’s or DCCR’s), Master Deed
(current and past, amendments)
Governing Documents – Corporate
Charter/Articles of Incorporation                 PERMANENT
(current and past, amendments)
Governing Documents – Bylaws
                                                  PERMANENT
(current and past, amendments)
Governing Documents – Board                       PERMANENT
Policies/Resolutions
Governing Documents – Restrictions                PERMANENT
and Rules
Governing Documents –                             10 YEARS
Architectural Approved and
Disapproved
Governing Documents –                             LATEST REVISION
Architectural Guidelines (current and             PERMANENT UNTIL


                                                                      4
past)                                    SUPERCEDED THEN 10   YRS
Minutes book – Annual Meetings           PERMANENT
Minutes book – Board of Directors        PERMANENT
Minutes – Committees                     PERMANENT



EMPLOYEE OF RRCCHOA
Employee Personnel Records               10 YEARS
Payroll Records & Summaries              10 YEARS



FINANCIAL
Accounts Payable and Receivable          10 YEARS
Ledgers
Bank Statements, Cancelled Items         10 YEARS
and Reconciliation


Budgets                                  10 YEARS
Financial Statements (end of year,       10 YEARS
other months optional)
General Ledgers (and end of year trial   10 YEARS
balances)
Checks (canceled for important           10 YEARS
payments, i.e. taxes, purchases of
property)
Depreciation Schedules                   10 YEARS
Inventories                              10 YEARS
Invoices                                 10 YEARS
Billing (Owners) Records                 10 YEARS
Notes Payable Documentation              10 YEARS
Purchase Orders                          10 YEARS



                                                                    5
Subsidiary Ledgers                     10 YEARS
Audits and/or Year-End Financials      PERMANENT
Tax Returns                            PERMANENT
Tax Documents Relating to              10 YEARS
Preparation of Tax Returns



GENERAL
Contracts (current and expired)        10 YEARS
Correspondence (general)               10 YEARS
Correspondence (legal and important    10 YEARS
matters)



LEGAL/INSURANCE/CLAIMS                 10 YEARS
Court Filings and Pleadings            10 YEARS
(foreclosures, small claims actions,
etc.)
Accident Reports and Claims (current   10 YEARS
and settled)
Insurance Policies (current)           10 YEARS
Insurance Policies (expired)           10 YEARS

NRS 116.31175




                                                   6
Red Rock Country Club Homeowners Association

 Policy Name: Event Policy
 Responsible Committee: Board
 Date Adopted: February 20, 2008



Purpose
To establish a policy for the coordination of homeowner held events that occur within the
community. These events may include, but are not limited to, parties, fund raisers, auctions,
open houses, and other social events.

Authority
Consistent with the Association’s Governing Documents, and applicable Nevada law, the owner
is responsible for the actions and conduct of any occupants of his or her lot, including, but not
limited to, family members, guests or invitees.

Scope
The Board of Directors adopts the following policy on behalf of the Association Members for
parking, safety covenants and rules that will be enforced 24 hours daily, seven days per week:

Specifics

   1.       No matter what the nature or size of the event, the homeowner and their guests must
            adhere to all applicable HOA policies concerning security, traffic & safety, noise,
            curfews, litter/trash, and lighting/decorations/signage.
   2.       All guests must comply with the HOA policies regarding gate check-in, display of the
            appropriate vehicle passes, and traffic regulations.
   3.       Events with over 100 guests (defined as a large event) must be coordinated with the
            HOA and the Director of Security.
   4.       For each large event the homeowner must submit an event plan to the HOA office at
            least 30 days in advance of the event. That plan must include, but is not limited to, the
            following items:
            a. The purpose of the event and the responsible individual (include name & contact
                information).
            b. The date, time and duration of the event.
            c. The anticipated attendance including the number of guests, staff, and other
                homeowners. An estimate of the number of vehicles should also be provided.
            d. All transportation, parking, and traffic flow specifics. If valet or shuttle service is
                provided, please be specific in the parking arrangements or shuttle vehicles and
                routes to be used.
            e. For large events, additional security staff may be required to be provided by
                Homeowner dependent upon type and size of event in order to ensure compliance
                with governing documents.




                                                                                                         1
          f. Any special situations should be noted in the plan. Those include, but are not
              limited to, deliveries, entertainment, lighting, decorations, signage, and cleanup and
              trash removal.
   5.     In addition, for all large events, all neighbors within 3 house (on both sides of the street
          and in the rear) must be informed in writing of the event at least 30 days in advance.
   6.     Failure to comply with this policy may result in a fine(s) being imposed on the
          homeowner in accordance with the applicable policies of the HOA.

Board of Directors - Red Rock Country Club Homeowners Association

ADOPTED this 20th day of February 2008, by the Board of Directors.




                                                                                                         2
Red Rock Country Club Homeowners Association


 Policy Name: Allowance for Doubtful Accounts
 Responsible Committee: Budget and Finance
 Adopted: February 20, 2008



Purpose
This document is intended to be the Association's Allowance for Doubtful Accounts Policy and
is subject to periodic review by management, the Finance Committee and the Board of Directors
(the “Board”) of the Red Rock Country Club Homeowners Association (the “HOA” or
“Association”). Changes to this Policy must be approved by the Board

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation,
shall be empowered to adopt, amend repeal, and/or enforce reasonable Rules and Regulations
pursuant to Article V, section 2 of the Covenants, Conditions and Restrictions for Red Rock
Country Club HOA.

Background
The Association’s normal operations result in receivables from the member homeowners. These
receivables arise from unpaid assessments, fees and fines and, at any point in time, may be
current or delinquent. Nevada statutes currently provide only limited protection to homeowners
associations regarding receivables from homeowners – providing associations with a priority in
collection efforts (in the case of foreclosure) equal to six months of assessments. While the
Association has practices, procedures and legal remedies to collect past due receivables,
ultimately some of the receivables will result in bad debts.

Generally accepted accounting principles require that the Association make a reasonable
estimate of the amount that may prove to be uncollectible and record such estimate in the
Association’s financial statements.

Scope
This Policy sets forth guidelines for the establishment and periodic review/update of the
Association’s allowance for doubtful accounts.

Specifics
Periodically during the year and as of the end of the Association’s fiscal year, the Finance
Committee and the Community Manager will have the responsibility for reviewing and assessing
the adequacy and appropriateness of the Association’s allowance for doubtful accounts. This
review and assessment should take into account the pertinent facts and circumstances relating to
the receivables, including but not limited to payment histories, delinquency status and legislated
protections described above. Based on that review, recommendations may be made for
adjustments to the allowance that the Finance Committee believes are appropriate. The Finance
Committee and Community Manager will be responsible for developing reasonable
methodologies for the estimation of the allowance. The methodologies used may be modified as
the facts and circumstances may require and should incorporate the Association’s actual bad debt
                                                                                                1
experience to the extent practical. The periodic calculations of the estimate along with the related
assumptions will be documented and retained as part of the Association’s financial records.
Board of Directors - Red Rock Country Club Homeowners Association

ADOPTED this 16th day of January 2008, by the Board of Directors.

Red Rock Country Club Homeowners Assocation


Allowance for Doubtful Accounts – December 31, 2007


The allowance for doubtful accounts as of December 31, 2007 is comprised of two components.


   1. A specific allowance determined by subjective analysis of the delinquent balances (aggregated by
      homeowner) which individually exceed $1000. A $1000 cutoff was established since these
      accounts make up a very substantial portion ($167,185 or 68%) of the total receivables. These
      accounts however only represent approximately 4.9% (55 / 1117) of the homeowner units. The
      attached worksheet documents this analysis and the assumptions and judgments incorporated
      therein. The analysis results in an allowance for this component of:

                         $ 90,771

   2. A general allowance determined by extrapolation of the analysis above to the remaining balance
      of the receivables as calculated below:

       Receivables as of December 31, 2007 not included in Component 1.       $ 78,946

       Percentage of accounts which may reasonably be expected to
       ultimately reach the status of significant delinquency based on the
       experience as of December 31, 2007. (see calculation above)                4.9%

                                                                                3,868

       Allowance percentage derived from Component 1
              ($ 90,771 / $167,185 = 54.3%)                                     54.3%

                                                                             $ 2,100

   3. Total allowance:

       Specific                            $ 90,771
       General                                2,100

       Total                              $ 92,871




                                                                                                       2
Red Rock Country Club Homeowners Association

 Policy Name: Fixed Asset Capitalization and
 Accounting Policy
 Responsible Committee: Budget and Finance
 Replaces: Fixed Asset Policy adopted July 27, 2005
 Date Adopted: September 19, 2007


Purpose
To establish policies for the consistent capitalization of and accounting for fixed asset
acquisitions in accordance with the guidelines discussed in the AICPA Audit and
Accounting Guide for Common Interest Realty Associations.

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit
corporation, shall be empowered to adopt, amend repeal, and/or enforce reasonable Rules
and Regulations pursuant to Article V, section 2 of the Covenants, Conditions and
Restrictions for Red Rock Country Club HOA.

Scope

Real estate: Real estate is generally only capitalized by an association when either of the
following conditions are met - a) the association can dispose of the property, at the
discretion of its board, for cash or b) the property is used by the association to generate
significant cash flows from members on the basis of usage or from nonmembers. These
conditions do not currently apply to the Red Rock Homeowners Association. However,
in the event that circumstances change and either of the conditions are applicable, then
the HOA's Finance Committee and/or the HOA's auditor should be consulted in order to
determine the most appropriate accounting treatment.

Personal Property: Personal property acquired using operating funds or reserve funds
with a cost of $1,000 or more and with a useful life of more than one year shall be
capitalized as an asset of the HOA. Individual expenditures less than $1,000 shall be
recorded as period expenses. However, a group of like items, individually valued at less
than $1,000, may qualify as a capital expenditure if the items are purchased together and
their aggregate value meets the threshold outlined above.

Specifics

        Personal property capital expenditures as described above shall be added to the
        assets of the HOA and recorded within the Operating Account.

        Depreciation expense will be calculated monthly and reflected in the periodic
        (monthly) Operating Account financial statements of the HOA.


                                                                                            i
In the situation where personal property capital expenditures are made using
Reserve Account finds, such expenditures should be treated as an interfund
transfer from the Reserve Account to the Operating Account. The journal entries
necessary to reflect such a transfer in the financial statements are shown below:

Operating Account

Dr Asset account
   Cr Transfer from Reserve Account

Reserve Account

Dr Transfer to Operating Account
   Cr Cash

Transfers between funds are not considered as revenues or expenses but should be
accounted for as changes in Fund Balances (Fund Equity).


The cost to repair or replace the HOA' assets are generally provided for through
the funding of the Reserve Account. To help ensure that the periodic Reserve
Study is as comprehensive as possible, care should be taken to advise the reserve
study specialist of new asset acquisitions.




                                                                               2
Red Rock Country Club Homeowners Association

 Policy Name: Bad Debt Accounting Policy
 Responsible Committee: Budget and Finance
 Date Adopted: July 18, 2007


Purpose

This document is intended to be the Association's accounting policy for the recording of uncollectible assessments, fees
and fines, and is subject to periodic review by management, the Finance Committee and the Board of Directors (the
“Board”) of the Red Rock Country Club Homeowners Association (the “HOA” or “Association”). Changes to this Bad
Debt Accounting Policy must be approved by the Board

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation, shall be empowered to
adopt, amend repeal, and/or enforce reasonable Rules and Regulations pursuant to Article V, section 2 of the Covenants,
Conditions and Restrictions for Red Rock Country Club HOA.

Scope
To establish a consistent accounting policy and procedures relating to:

    •     The methodology for establishing an allowance for doubtful accounts

    •     The accounting for write offs of assessments, fees and fines that are determined to be uncollectible

    •     The accounting for assessments, fees and fines that are subsequently waived or forgiven, in whole or in part, by
          the HOA’s Board

Specifics

Reserve Establishment and Maintenance

The Association is required to estimate the amount of assessments, fees and fines that are likely to be uncollectible in
order to meet the requirement that the association’s books comply with Generally Accepted Accounting Principles
(GAAP). This estimate is recorded on the books of the association as its Allowance for Doubtful Accounts. The amount of
the allowance for doubtful accounts is established by a combination of:


    •   Applying percentages, based on reasonable assumptions established by the Finance Committee, to the aged
        receivable balances, and;
    •   Allowances established for specific resident balances where the collection process has reached a level that
        indicates it is likely that the outstanding assessments, fees and fines balances will not be collected in whole or in
        part.


The allowance for doubtful accounts, after its initial establishment, will be periodically reevaluated as to its adequacy by
the Finance Committee. This reevaluation will be conducted at least annually or more frequently when considered
necessary by the Finance Committee or the Treasurer or is recommended by the Community Manager.

                                                                                                                           1
Accounting for write offs


Assessments, fees and fines receivable will be written off when one of the following occur:


   1. The HOA has determined that the receivable is uncollectible and has abandoned collection efforts.


   2. The HOA Board has made a decision to waive or forgive all or part of a receivable.


Write offs resulting from abandonment of collection efforts will be charged to the allowance for doubtful accounts.


Write offs resulting from Board waivers or forgiveness will be charged to the respective income accounts that are related
to the receivables.



Other


For any unique circumstances not contemplated by the above policy, the Community Manager in conjunction with the
Finance Committee and the HOA Treasurer will be responsible for determining the appropriate accounting treatment.




                                                                                                                       2
Red Rock Country Club Homeowners Association
 Policy Name: Investment Policy
 Responsible Committee: Budget and Finance
 Replaces: Investment Policy adopted October 27, 2004
 Date Adopted: June 20, 2007
Purpose
This document is intended to be the Association's Investment Policy and is subject to periodic
review by management, the Finance Committee and the Board of Directors (the “Board”) of the
Red Rock Country Club Homeowners Association (the “HOA” or “Association”). Changes to
this Investment Policy must be approved by the Board.

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation,
shall be empowered to adopt, amend repeal, and/or enforce reasonable Rules and Regulations
pursuant to Article V, section 2 of the Covenants, Conditions and Restrictions for Red Rock
Country Club HOA.

Scope
To establish guidelines on the Investment of Operating Funds (Operating Funds include deposits
held on behalf of others) and Reserve Funds of the Association in order to obtain investment
returns consistent with the highest level of preservation of capital, guided by the following
general principles; in this order of importance:

   1. SAFETY (Capital preservation)
   2. LIQUIDITY (funds to be available when needed)
   3. YIELD (Best yield consistent with 1 & 2 above) ,



Avoidance of credit risk, risk arising from interest rate oscillation and risk of loss of capital
from investments are important considerations and consequently, appropriate consideration
should be given to investments which provide additional security such as insurance provided
by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection
Corporation (SIPC).

Specifics

Operating Funds: Permitted investments of Operating Funds include the following:

Primary     -   Certificates of Deposit which are insured by the FDIC.
            -   Depository accounts which are insured by the SIPC.
            -   U.S. Treasury Bills, Notes or Bonds maturing in one year or less from date of
                investment.



                                                                                               1
Secondary - To the extent that excess operating funds are available for investment and a higher
degree of liquidity is desirable under the circumstances, then the Association may invest in
Money Market Funds whose underlying portfolio is diversified and consists of low risk
investments consistent with the guiding principles outlined above.

The Association shall maintain at all times liquid funds sufficient to meet 10 days of expenses.
Such funds shall be maintained such that they may be drawn upon with one week’s notice and
without loss of principal.



Reserve Funds: The same investments permitted for Operating Funds in the above section shall
be permitted for Reserve Funds. In addition, investment maturities may be extended to as much
as ten years for portions of the reserves which have been identified as being needed ten years or
further into the future. Investments of Reserve Funds made pursuant to this policy shall be
scheduled so that maturities, to the extent possible, will be consistent with projected cash needs
as determined by periodic and appropriately commissioned independent Reserve Studies.


Policy Administration

The Community Manager, the Finance Committee and the HOA’s Treasurer shall be responsible
for periodic review of the HOA’s cash position in order to ensure that sufficient liquid funds are
available to meet the HOA’s cash needs. The Finance Committee shall ensure investment
transactions fall within this Investment Policy and make investment recommendations to the
HOA’s Treasurer who has the authority to execute investment transactions. Prior Finance
Committee review is not necessary in the event the HOA Treasurer (or, in the Treasurer’s
absence, a Board member with signatory authority for the HOA’s investment accounts)
determines that liquidation of investments is necessary to meet an immediate cash need of the
HOA.




                                                                                                2
Red Rock Country Club Homeowners Association

 Policy Name: Safety Enforcement Policy
 Responsible Committee: Traffic and Safety
 Replaces: Policy dated July 27, 2005
 Date Adopted: March 21, 2007


Purpose
To clarify the association’s enforcement of parking and safety related violations.

Authority
Section 5.2 of the Declaration of CC&R’s empowers the Board of Directors of the HOA to
adopt, amend, repeal and/or enforce reasonable and uniformly applied Rules and Regulations,
which shall not discriminate among Members, for the use and occupancy of the properties

Scope
The Board of Directors adopts the following policy on behalf of the Association Members for
parking, safety covenants and rules that will be enforced 24 hours daily, seven days per week:

Specifics

These violations included but are not limited to:

1.     Safety Violations:
               Speeding
               Traffic sign violation
               Failure to comply with a safety officer

2.     Unauthorized Access
             Failure to check in (tailgating)
             Failure to display a current year decal

3.     Parking
                 Resident Street parking without approval
                 Resident Driveway parking without Driveway Parking Permit
                 Blocking mailboxes between the hours of 6 a.m. and 6 p.m. Monday – Saturday,
                 exclusive of holidays.
                 Blocking sidewalk/parking on curb
                 Blocking driveway (except for visitors to a specified residents address)
                 Blocking fire hydrant/fire lane
                 Parking against the flow of traffic
                 RV parking unless in accordance with RV Policy




                                                                                                1
4.     Property
              No Construction debris/storage on the street without variance granted by
              Architectural Review Committee
              No outdoor construction work after hours

The above violations are supported by board approved policies.

Revised on 3/21/07




                                                                                         2
Red Rock Country Club Homeowners Association
Policy Name: Motorized Leisure Vehicle Policy
Responsible Committee: Traffic and Safety
Replaces: July 27, 2005
Date Adopted: January 17, 2007


Purpose
To regulate the use of motorized leisure vehicles on the common elements for the safety of the equipment
operator, pedestrians and motorists in a manner consistent with the requirements of state law to operate these
vehicles on the public streets.

Authority
Whereas, the Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation, shall
be empowered to adopt, amend, repeal, and/or enforce reasonable Rules and Regulations pursuant to Article
V, Section 2 of the Covenants, Conditions and Restrictions for Red Rock Country Club HOA; and has the
power to impose fines and other sanctions for violations of governing documents in accordance with NRS
116.31031.

Scope
Motorized leisure vehicles are powered, self-propelled vehicles that cannot be registered or licensed with the
State of Nevada. These leisure vehicles include, but are not limited to, pocket bikes, scooters, gopeds,
mopeds, all terrain vehicles (ATV) and golf carts. Personal assistive mobility devices, such as electric
wheelchairs and scooters, are specifically excluded from this definition.

Specifics
   1. Age of Operator. Operators of motorized leisure vehicles must be at least 16 years of age and
       possess a legal driver’s license.

   2. Equipment Required for Street Operation. Except for golf carts, all other motorized leisure
      vehicles must be equipped with headlights, brake lights, turn signals, mirrors and horn in order to be
      operated on the private streets of RRCCHOA.

   3. Rules of the Road. When on the private streets of RRCCHOA, operators shall follow all rules of the
      road as if they were driving an automobile.

   4. Restricted Areas. Regardless of how they are equipped, motorized leisure vehicles shall not be
      operated on the sidewalks, over turf or landscaped areas, in or around the staffed or unmanned gates,
      on parking lots, around construction areas or on the playgrounds, volleyball court and basketball
      courts. For the information of residents, the Country Club has established and enforces its own
      restrictions on the operation of this equipment on its golf courses, cart paths, parking lots and other
      property.

   5. Right of Way. Golf carts on cart paths shall yield to vehicular traffic on the private streets.

   6. Nuisances. Motorized leisure vehicles shall not be operated so as to constitute a nuisance to fellow
      residents. Jumps, ramps, obstacle courses and other ancillary equipment shall not be placed on the
      private streets or in any other area where the operation of these vehicles is prohibited.


                                                                                                            1
   7. Transponders. Except for golf carts, transponders cannot be used on motorized leisure vehicles to
      operate the gates as it constitutes a safety risk for the user. Transponders identified as having been
      used in conjunction with these vehicles shall be immediately disabled.

   8. Responsibilities of Parents. Parents shall be responsible for the conduct of their children while
      using this equipment and shall provide appropriate supervision to ensure compliance with the rules
      pertaining to its use.

   9. Insurance. Homeowners must carry a minimum of $500,000 general liability insurance for all
      motorized leisure vehicles as described in the scope of this policy.

A $50 fine, suspension of voting privileges or other sanctions may be imposed for each violation of these
rules after notice and hearing.




                                                                                                          2
Red Rock Country Club Homeowners Association

 Policy Name: Traffic Safety Committee Violation Fines and Hearings
 Responsible Committee: Traffic Safety
 Replaces: Resolution dated October 27, 2004
 Date Adopted: September 20, 2006



Purpose
To update the Traffic Safety Committee Violation Fines and Hearings Resolution originally
adopted October 27, 2004.

Authority
Red Rock Country Club Homeowners Association is a Nevada Corporation duly organized and existing
under the laws of the State of Nevada, and the members desire that the Association shall act in full
accordance with the Covenants, Conditions, and Restrictions, Rules and Regulations (“Governing
Documents”) and Nevada State Statutes. The Nevada State Law requires that hearings be held prior to
fines being levied and allows the Board of Directors to authorize a committee to conduct that process.

The Traffic Safety Committee is hereby charged with the authority to act as a hearing panel and
conduct at least monthly hearings or as required in accordance with the Governing Documents and
Nevada State Statute in order to address traffic safety violations in a timely manner. The Traffic
Safety Committee as a hearing panel will operate with a quorum in order to conduct hearings.
Minutes of the hearings shall be kept as prescribed by law and submitted to the Board of Directors
at their regularly scheduled meetings. Owners may appeal the decision of the hearing panel to the
Board of Directors unless the Board of Directors is acting as the hearing panel.

Scope
It is the intent that this policy shall be applicable to all owners, tenants, or any others which allows
the hearing panel or board the discretion to impose fines against any or all of the above which is in
accordance with NRS 116.31031.

Specifics
The Board of Directors hereby takes the following action:

       Establish fines of $50.00 to $100.00 for all traffic and safety violations in accordance with
       the Governing Documents and NRS 116.

       Establish fines for speeding in accordance with the following schedule:

       $100.00 31-40 mph
       $150.00 41-50 mph
       $200.00 51 mph and over
Red Rock Country Club Homeowners Association

 Policy Name: RV, Boat, Motor Home and Trailer Parking Policy
 Responsible Committee: Traffic and Safety
 Replaces: Policy dated April 27, 2005
 Date Adopted: July 12, 2006


Purpose
Revise the RV, Boat and Motor Home Parking Policy to permit temporary overnight parking for
loading and unloading trailers used for transportation of recreational vehicles.

Authority
Section 10.19 of the Declaration of Covenants, Conditions and Restrictions and Reservation of
Easements for Red Rock Country Club defines the Parking and Vehicular Restrictions related to
recreational vehicles. Section 5.2 of the Declaration of CC&R’s empowers the Board of Directors of
the HOA to adopt, amend, repeal and/or enforce reasonable and uniformly applied Rules and
Regulations, which shall not discriminate among Members, for the use and occupancy of the properties

Scope
This policy applies to temporary parking of trailers for towing Boats, RV’s, and Motor Homes,
belonging to the Red Rock homeowners.

Specifics
Residents may obtain a pass to park, on a temporary basis, a trailer and associated boat or recreation
vehicles, or a motor home in their driveway, or in front of their home, for a period of no more than 24
hours at any time. Passes will not be issued for more than two consecutive 24 hour periods. Visitors are
not permitted to bring RV’s boats or motor homes on the property and shall not be issued a RV pass.

The Board understands and recognizes that certain situations may require a variance to the policy
for trailers. In the event a resident requires more than the six (6) entry passes per month, residents
must request special approval from the HOA Office.

Trailers are not permitted to:
   • Block the sidewalk, park over the curb or on the sidewalk.
   • Block lines of sight along the street.

RV’s and motor homes are not permitted to:
   • Block the sidewalk, park over the curb or on the sidewalk.
   • Block lines of sight along the street.
   • Discharge waste water or run water/electrical connections across streets or sidewalks.
   • No person (s) is permitted to live, sleep or work in the vehicle while inside the community.

The RV, Boat, Motor Home and Trailer pass shall be prominently posted with the front of the pass
facing the street.

Individuals violating this policy may be cited and fined, after notice and hearing as required by law.
Red Rock Country Club Homeowners Association

 Policy Name: Records Access Policy
 Responsible Committee: Board of Directors
 Replaces: Policy dated January 30, 2002
 Date Adopted: June 14, 2006


Purpose
To update the Records Access Policy adopted January 30, 2002, in order to be in compliance
with the current regulations outlined in NRS 116.

Authority
Section 20.12 of the Declaration of Covenants, Conditions and Restrictions and Reservation of
Easements for Red Rock Country Club outlines the intent to have the Declaration be in all
respects consistent with, and not in violation of, applicable provisions of NRS Chapter 116.
Article X of the Bylaws of Red Rock Country Club Homeowners Association outlines the
requirement for the HOA to maintain a complete record of all of its acts and corporate affairs,
and to make those records available for inspection by any Member.

Scope
Provide a process for inspection of the books and records of the Red Rock Country Club HOA,
as provided for in the governing documents of the HOA, and Nevada State Law.

Specifics
1.     Records Defined

    a.       The records available for inspection and copying are those designated by the
             associations governing documents and the Uniform Common Interest
             Ownership Act, which is codified at Nevada Revised Statutes, Chapter 116
             ("NRS 116"), as amended from time to time.

     b.      The Association's board may withhold from inspection any of the following:
             (i)     personnel records of the employees of the association, except for those
                       records relating to the number of hours worked and the salaries and
                       benefits of those employees (NRS 116.31175(1)(a));
             (ii)    records of the association relating to another unit's owner (NRS
                       116.31175(1)(b));
             (iii)   A contract between the association and an attorney (NRS 116.31175 (1)(c));
             (iv)    minutes of the executive sessions of the board of directors, except the
                     person who was the subject of a hearing may receive a copy of the decision
                     (NRS 116.31085(4));
             (v)     all records which constitute attorney-client privileged documents,
                      including any letters or memorandum from counsel (NRS 49.035NRS
                      49.115, inclusive, and NRS 116.31085(2)(a));
            (vi)     all documents regarding proposed or pending litigation, except any item


                                                                                               1
                      which is a matter of public record (NRS 116.31085(2)(a));
      c.         The association is under no obligation to provide any additional information
                 other than that required by law.

2.        Persons Entitled to Inspect or Copy

Every Member shall have the right to inspect or copy the association's records in compliance
with the rules and procedures contained in this policy. See NRS 116.31175. A Member may
authorize, in writing, an attorney or other designated representative to conduct the inspection
or request copies on the Member's behalf. Any such authorized representative shall be
considered a "Member" for purposes of this policy.

3.        Written Request Required
      a.         Inspection or copying shall be limited to those records specifically requested in
                 advance, in writing. A member who wants to inspect or copy the association's
                 records shall submit a written request and signed affidavit to the Board of
                 Directors. The written notice shall specifically identify the records to be
                 inspected, including pertinent dates or time periods, so that such records may be
                 assembled in an orderly manner for inspection.
      b.        No original records may be removed from the association’s management
                office.

4.        Inspection Rules
     a.         All inspections shall take place at the association's on-site management office. No
                member shall remove original records.
      b.         Members shall not alter the records in any way.

      c.         The association shall make records available for inspection within fourteen (14)
                 days after receipts of the written notice, during regular business hours of 9:00
                 a.m. to 5:00 p.m., Monday through Friday (except holidays). This time frame
                 may be extended upon the Member's written request, or if the records
                 requested are too voluminous or otherwise in such condition as to render this
                 time frame unreasonable.

5.        Copying Rules
          a.      If a Member wants a copy of any record, the Member shall designate in writing
                  the record(s) desired on the affidavit.
          b.      During an inspection, the Member may designate such record by use of a tab,
                  clip, or post-it note upon the pages(s) desired.
          c.     Members requesting access to inspect association records shall bear any reasonable
                 cost incurred by the association in meeting such request.
           d.    Copies shall be available within five (5) working days of receipt of the request,
                 unless the voluminous nature or condition of the records makes this time frame
                 impractical. In such cases, the copies will be made available as soon as is practical.


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     e.         Should the Member requesting the inspection require copies of the association
                records, such copies will be provided at a cost not to exceed $.25 per copy, payable
                in advance. See NRS 116.31177(2).
6.    Manner of Inspection or Copying
     a.         Member's shall not exercise their inspection or copying rights in order to harass
                any other Member or resident, association managing agent, officer, director, or
                employee as stated in the affidavit.
     b.         Members requesting access to inspect shall not disrupt ordinary business activities
                of the management office during the course of the inspection. The association
                office shall assign one staff person to assist in the inspection. All requests for
                further assistance and copying during an inspection shall be directed only to that
                staff person.
     c.    The association shall maintain a log detailing:

           i.         The date the written request was received;

           ii.        The name of the requesting party;

           iii.       A list of the requested records;

           IV.        The date the association notified the Member that the records were available;

           v.         The date the records were made available;

           vi.        The date of actual inspection or copying; and

           vii.       The signed affidavit acknowledging receipt of, or access to, the records.

7.    Enforcement of Inspection & Copying Rules
      a.          Any violation of these rules shall cause the immediate suspension of the inspection or
                  copying until the violator agrees in writing to comply herewith.

      b.          The association will not honor any requests for inspection or copying that do not
                  comply with this policy. Within five (5) working days of receiving the noncompliant
                  request, the association shall send a written notice the person who made the request
                  indicating the nature of any noncompliance. Any association representative who
                  receives an oral request for inspection or copying shall refer the person making the
                  request to this policy, and the association will have no further obligation to respond
                  until it receives a written request.
      c.          The association’s board may take any available legal action to enforce these rules,
                  including the levy of a fine, consistent with the Association's Penalty Policy and
                  Procedure Guide. See NRS 116.31031.




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4
Red Rock Country Club Homeowners Association

 Policy Name: Temporary Driveway Parking Permit Procedure
 Responsible Committee: Traffic and Safety
 Replaces: Policy dated April 23, 2003
 Date Adopted: June 14, 2006


Purpose
To update the Temporary Driveway Parking Permit Policy adopted April 23, 2003.

Authority
Section 10.19 of the Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for
Red Rock Country Club defines the Parking and Vehicular Restrictions related to recreational vehicles. Section
5.2 of the Declaration of CC&R’s empowers the Board of Directors of the HOA to adopt, amend, repeal and/or
enforce reasonable and uniformly applied Rules and Regulations, which shall not discriminate among Members,
for the use and occupancy of the properties

Scope
Provide temporary relief from the driveway parking restriction for personal vehicles contained in Section 10.19
of the CC&R’s, due to individual circumstances and/or hardship.

Specifics
A short term parking pass of no more than 30 days in duration, will be issued to homeowner’s undergoing move
in activity, home improvements and repairs or other activities which necessitate parking of homeowner’s
personal vehicles in the driveway. The pass can be obtained from the HOA office.

Driveway parking permits for one year in duration may be issued to homeowner’s that meet the following
requirements:
   • Specific obstacles exist which do not allow compliance with the CC&R’s as written. Including, size and
       shape of the garage, number of licensed drivers and/or vehicles at the home or residents with physical
       handicaps.
   • Use of garage space must be maximized before a temporary permit will be considered. Use of garages
       for any type of storage or other permanent activity is NOT a valid circumstance to apply for a permit.
   • Permits are considered a convenience and will not be granted at the expense of the safety of other
       residents. (i.e. blocking views of oncoming traffic, etc.)
   • Applications that are denied may be appealed to the Board of Directors.
   • No one can park a Commercial vehicle in the driveway. This means any vehicle with signage or
       lettering that advertises a business.

The following requirements and guidelines are to be followed:
   • A completed application form (available at the HOA office on the Red Rock HOA website) with at
       $40.00 fee per household is to be submitted to the HOA office. Fees will be returned if the permit
       request is denied.
   • Photo copies of registration certificates or similar documents displaying the homeowner or immediate
       family as owners of the vehicles.
   • Allow for an on-site inspection by the Board or HOA office staff to validate the requirement.
   • Vehicles must be fully operational and used on a regular basis by licensed drivers.

   Decals for all vehicles owned by the requesting homeowner will be issued and are to be displayed in the rear
   view window.
Red Rock Country Club Homeowners Association

 Policy Name: Code of Conduct
 Responsible Committee: Board of Directors
 Replaces:
 Date Adopted: June 14, 2006


Vision Statement
To make Red Rock Country Club the best gated residential community in Las Vegas by
making decisions that will protect, maintain and enhance the value of the properties in the
community.

Overall
The guiding philosophy that governs the actions of the Board of Directors, Board
appointed committees, HOA staff and vendors is to support the vision and to maintain
the highest level of integrity/honesty, and be fair and equitable in our dealings with the
homeowners.

Rules of Conduct
   • When specific situations arise that require interpretation of the CC&R’s, By-laws,
       Policies and Procedures, and/or other governing documents, the board will seek
       the advice of legal counsel for clarification.

   •   All interactions with homeowners by the board, its committees, and HOA staff are
       to be conducted in a professional, friendly and courteous manner. Homeowners
       are expected to act in a similar manner.

   •   The board, its committees, and HOA staff will commit whatever time and
       resources it takes to fulfill their fiduciary responsibilities to obtain homeowner
       compliance with deadlines and conformance to rules.

   •   Unless there is clear evidence of a violation, the homeowner should not be cited.
Red Rock Country Club Homeowners Association
 Policy Name: Pet Policy
 Responsible Committee: Community Standards
 Date of Adoption: June 15, 2006


Purpose
To establish a Pet Policy.

Authority
Pursuant to the Declaration of Covenants, Conditions and Restrictions (the “Declaration”), the
Association has a duty to do any and all things which are necessary or proper in operating for the
peace, health, comfort, safety and general welfare of its Members (Declaration Article 3 section
3.2). The functions of the Association include the power and the duty to enforce use restrictions
pertaining to the Properties (Declaration Article 5 section 5.1(p)). Article 10, section 10.4 of the
Declaration addressing Animal Restrictions and Article 10, section 10.5 of the Declaration
addressing Nuisances detail the applicable Use Restrictions.

Scope
Consistent with the Declaration, applicable Nevada law and the Clark County Animal Control
Ordinance Title 10, the following rules and regulations constitute the Pet Policy. The definition of
“Pets” and acceptable quantities of Pets are detailed in Article 10, Section 10.4 of the Declaration.
This Policy applies not only to Members but also their respective families, licensees, tenants or
invitees.

   A. All Pets must have appropriate shots and tags as required by the Clark County Animal
      Control Ordinance Title 10.

   B. Pets, including cats, shall be kept within an enclosed yard or on a leash or other restraint,
      supervised by a person capable of controlling the animal. No animal shall be permitted to
      roam at large on the common elements, or another resident’s property. Pet owners are
      responsible for personal injury to individuals and other’s pets and property damage caused
      by their pets.

   C. Pets found at large by security personnel shall be reported to the Clark County Animal
      Control.

   D. Pets shall not walk, play or exercise on the golf course.

   E. With the exception of service animals, pets are not permitted in the Association office. If the
      service animal is not wearing an identifiable harness or apron denoting its service functions,
      the individual accompanied by the service animal may be asked to identify it as such to
      Association staff.

   F. Pets shall be restrained from depositing any type of waste in all common areas as well as
      another resident’s property. Pet waste shall be removed immediately from the common


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   elements or from the lots of property owners by the person exercising control of the pet and
   properly disposed.

G. Residents shall ensure that pets do not constitute a nuisance to other residents through
   prolonged noise or constitute a danger to other residents and their pets through
   harassing/threatening/attacking behaviors.

H. Residents and guests shall refrain from feeding or harassing wildlife. To avoid attracting
   unwanted wildlife, vermin and insects, pet food shall not be left outdoors in an unsecured
   container.

I. No pets or other animals shall be kept on premises for the sole purpose of commercial
   breeding or any other type of arranged distribution.




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Red Rock Country Club Homeowners Association
Policy Name: Political Signage Policy
Responsible Committee: Community Standards
Replaces:
Date Adopted: May 17, 2005


Purpose
To establish a policy that addresses the display of political signage.

Authority
The Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation,
shall be empowered to adopt, amend, repeal, and/or enforce reasonable Rules and Regulations
pursuant to Article V, Section 2 of the Covenants, Conditions and Restrictions for Red Rock
Country Club HOA; and has the power to impose fines and other sanctions for violations of
governing documents in accordance with NRS 116.31031.

Scope
It has become apparent that some residents may wish to display political signage on their Lot or
Unit within pubic view from other properties within the community. It is the intent that this rule
shall be applicable to all Owners, tenants, or any others until such time as a majority of the Board
of Directors finds it necessary to rescind, modify or amend the policy.

Specifics
A political sign is a sign that attempts to influence the election of a public officer or attempts to
influence a public measure such as a ballot measure, a proposition or the recall of a public
officer. Only one (1) political sign is permitted per home. Regulations regarding the display of
political signs within the Community are as follows:

             Association members may display one (1) political sign thirty (30) days before an
             election and three (3) days after an election. The political sign must be displayed
             within the member’s property and may be displayed in the front yard or from within
             the home.

             Political signs shall be no larger than eighteen inches high (18”) by thirty inches
             wide (30”).

             If displaying a political sign in the front yard, the sign must be placed a minimum of
             eighteen inches (18”) from the curb or sidewalk. Political signs shall not be placed
             in back or side yards or in view of the Golf Course.

             If displaying a political sign indoors, the sign is allowed only in one ground level
             window facing the street. Political signs shall not be displayed on any doors or in
             back or side yard windows or that can be visible from the Golf Course Properties.

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            No political signs shall be permitted on fences or walls, or within courtyards located
            on member’s property.

            No political signs shall be placed in the common areas or attached to the Common
            Area Walls. Political signs cannot be placed at Community or Neighborhood
            entrances. Political signs are not permitted in any common areas of the Association.

Signs that do not comply with the Declaration and Rules may be removed by the Association
and/or its agents without any prior notification. Should any cost be incurred by the Association
for such removal, it shall be charged to the Owner, as a Special Assessment, of the lot displaying
the sign. Any such signs removed will be retained by the Association and/or its agents for a
period of ten (10) days and then discarded. To recover signs removed contact the Association
office.




                                                                                                2
Red Rock Country Club Homeowners Association
Policy Name: Park Reservation Policy
Responsible Committee: Community Standards
Replaces:
Date Adopted: July 23, 2003

Purpose
To provide a policy with for the use of the common area parks located within the community by the
residents for their private social events.

Authority
Whereas, the Board of Directors for the Red Rock Country Club HOA, a Nevada nonprofit corporation,
shall be empowered to adopt, amend, repeal, and/or enforce reasonable Rules and Regulations pursuant to
Article V, Section 2 of the Covenants, Conditions and Restrictions for Red Rock Country Club HOA; and
has the power to impose fines and other sanctions for violations of governing documents in accordance
with NRS 116.31031.

Scope
To provide procedures for residents that may wish to use the common area parks located within the
community for their private social events.

Specifics
The following procedures must be followed for the use of the common area parks:
              Reservations to be made by residents in good standing only.
              Reservation fee shall be $50 per event, refundable if the event is cancelled.
              $300 Refundable Damage Deposit will be required in advance (to be held & returned).
              Any damage to park area or equipment to be deducted from above Deposit.
              Reservation hours from 10:00 a.m. to 10:00 p.m.
              Electric power will not be provided by the Association.
              Bands and/or loud speakers are prohibited.
              Applicant must leave area clean and remove all trash and debris or be charged a penalty.
              Volleyball and basketball courts cannot be reserved.
              Reserve Reports
Red Rock Country Club Homeowners Association

				
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