The Sea Ranch Restrictions

   

 

A Declaration of Restrictions, Covenants and Conditions

 

                       

Recorded in the Office of the Recorder, County of Sonoma, on May 10, 1965, in Book 2127 of Official Records at Page 237, as amended by the Certificates of Amendment recorded on October 14, 1969, in Book 2422 of Official Records at Page 567, and on September 16, 1971, in Book 2565 of Official Records at Page 510, on July 19, 1994 of Official Record Number 1994-0087620, and on November 26,

2013 of Official Record 2013-112657.  

Printing of October 2013

If this document contains any restriction based on race,color, religion, sex, familial status, marital status, disabil-ity, national origin, or ancestry, that restriction violatesState and Federal Fair Housing Laws and is void, andmay be removed pursuant to Section 12956.1 of theGovernment Code. Lawful restrictions under State andFederal law on the age of occupants in senior housing orhousing for older persons shall not be construed asrestrictions based on familial status.

The Sea Ranch Restrictions

A Declaration of Restrictions, Covenants and Conditions

Recorded in the Office of the Recorder, County of Sonoma, on May 10, 1965, in Book 2127 of Official Records at Page 237, as amended by the Certificates of Amendment recorded on October 14, 1969, in Book 2422 of Official Records at Page 567, and on September 16, 1971, in Book 2565 of Official Records at Page 510, on July 19, 1994 of Official Record Number 1994-0087620, and on November 26, 2013 of Official Record 2013-112657.

The Sea Ranch Association Board of Directors, at a duly noticed meeting on October 26, 2013, voted unanimously to amend The Sea Ranch Restrictions, as authorized by California Civil Code section 4235, to correct cross-references to repealed provisions of the Davis-Stirling Act for the purpose of making The Sea Ranch Restrictions compliant with the 2014 rewrite of Davis-Stirling, adopted by the California Legislature, which takes effect on January 1, 2014.

ERRATA

Page 9, 1st column, third paragraph from the bottom, under the heading “Project” – the words “any project as defined in paragraph 3 of Section 1350 of the Civil Code of the State of California” are deleted, and replaced by the words “the entire parcel of real property divided, or to be divided into condominiums, including all structures thereon”. Page 10, 1st column, 2nd paragraph from bottom, under the heading “Subdivision Map”, 6th & 7th lines from top – the words “Division 2, Part 4, Title 6” are deleted, and replaced by the words “Division 4, Part 5”.

Frank M. Bell Community Manager

The Sea Ranch Association November 2013

Table of Contents

6 A Declaration of Restrictions, Covenants and Conditions

6 Article I. Definitions.

Architect Articles Assessed Value Association Board Bylaws Common Area Condominium Cost of Living Index Design Committee Design Committee Rules Development Assessment Certificate Development Fund Excavation File; Filed Fill Fiscal Year Grantor Guest Improvements Indigenous Specie Lot Lot Splitting Maintenance Assessment Manager Miscellaneous Fee Mortgage; Mortgagee Notice Operating Fund Owner Participating Facility Permitted User Private Area Private Facility Development Assessment Private Recreational Facility Project Project Area Project Committee Public Facility Development Assessment Public Recreational Facility

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Record; Recorded Recreational Assessment Recreational Facility Refinish Residence Restricted Common Area Restricted Private Area Road Special Assessment Structure Subdivision Map The Sea Ranch The Sea Ranch Restrictions The Sea Ranch Rules Unallocated Balance Unit Use Fee Visible From Neighboring Property

11 Article II. The Sea Ranch – Property Subject to The Sea Ranch Restrictions.

Section 2.01. The Sea Ranch: Initial Development

Section 2.02. The Sea Ranch:Annexation of SubsequentDevelopments

13 Article III. Land Classifications, Use and Restrictive Covenants.

Section 3.01. Land Classifications

Section 3.02. Private Area: Uses; Restrictions

Section 3.03. Private Area:Construction and Private Area:Construction and Alteration ofImprovements; Excavations, etc.

Section 3.04. Restricted Private Area:Uses; Restrictions

Section 3.05. Common Area: Uses;Restrictions

Section 3.06. Restricted Common Area: Uses; Restrictions

Section 3.07. Common Area, RestrictedCommon Area, and Restricted PrivateArea: Construction and Alteration ofImprovements; Excavations; etc.

Section 3.08. Project Area: Uses;Restrictions Section 3.09. Project Area:Construction and Alteration ofImprovements; Excavations; etc.

Section 3.10. Presumption ofCompliance

28 Article IV. Design Committee.

Section 4.01. Design Committee:Organization; Power of Appointmentand Removal of Members

Section 4.02. Design Committee: Duties

Section 4.03. Design Committee:Meetings; Action; Compensation;Expenses

Section 4.04. Design Committee Rules

Section 4.05. Non-Waiver

Section 4.06. Estoppel Certificate

Section 4.07. Liability

31 Article V. The Sea Ranch Association

Section 5.01. Organization

Section 5.02. Membership

Section 5.03. Voting Rights

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Section 5.04. Duties and Obligationsof the Association

Section 5.05. Powers and Authority ofthe Association

Section 5.06. The Sea Ranch Rules

Section 5.07. Liability of Members ofBoard

Section 5.08. Exclusive Powers ofthe Association

36 Article VI.Funds and Assessments.

Section 6.01. Operating Fund

Section 6.02. Maintenance Assessment

Section 6.03. Recreational Assessment

Section 6.04. Special Assessment

Section 6.05. Development Fund

Section 6.06. Public FacilityDevelopment Assessment

Section 6.07. Private FacilityDevelopment Assessment

Section 6.08. Default in Payment ofAssessments

39 Article VII. Development and Use of Recreational Facilities.

Section 7.01. Introduction

Section 7.02. Public RecreationalFacilities; Procedure for Development

Section 7.03. Private RecreationalFacilities

Section 7.04. Users of PrivateRecreational Facilities

44 Article VIII. Participating Facilities.

(Note: Article VIII was repealed by voteof the membership and adopted byResolution No. 1 on July 9, 1988.)

47 Article IX. Miscellaneous Provisions.

Section 9.01. Amendment or Repeal;Duration

Section 9.02. Enforcement; Non-Waiver

Section 9.03. Construction; Compliancewith Laws; Severability; Singular andPlural; Titles

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Section 9.04. Lot Splitting;Consolidation

Section 9.05. Conveyance of CommonArea and Restricted Common Area;Reservation of Easements and Rightsof Way; Reclassification of Land Area

Section 9.06. Assignment of Powers

Section 9.07. Condemnation of CommonArea and Restricted Common Area

Section 9.08. Obligations of Owners;Avoidance; Termination

Section 9.09. Notices; Documents;Delivery

A Declaration of Restrictions,Covenants and Conditions

This Declaration is made this 29th day ofApril 1965, by Oceanic Properties, Inc., aHawaii corporation, as owner and developerof portions of a unique coastal ranch whichis described in the deed referred to in sec-tion 2.02 and which, since the date of itsoriginal grant in 1861, has been beautifullypreserved in its natural and unspoiled state.The purpose of this declaration is to perpet-uate, with respect to such developed por-tions, the rich variety of this rugged coastal,pastoral, and forested environment for thebenefit of all who acquire property withinThe Sea Ranch (as hereinafter defined).

Through The Sea Ranch, Oceanic Proper-ties, Inc. seeks to meet the increasing andhighly sophisticated recreational demandsof a portion of the burgeoning population ofthe United States in a manner which insuresthe full enjoyment of the historical traditionsand natural advantages of the area for allwho acquire property therein and yet whichencourages controlled diverse individualexpression within the environment. OceanicProperties, Inc. believes that this fundamen-tal concept which underlies the develop-ment and use of The Sea Ranch serves bothpublic and private interests by fostering abeneficial land use which retains the uniquebeauty of the land and creates an atmos-phere enriching the spirit of its participants.

It must be assumed that all owners of prop-erty within The Sea Ranch, by virtue of theirpurchase of such property, are motivated bythe character of the natural environment inwhich their property is located, and accept,for and among themselves, the principlethat the development and use of The SeaRanch must preserve that character for itspresent and future enjoyment by otherowners.

It is also assumed that those who are en-trusted with the administration of The SeaRanch will discharge their trust in full

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recognition of that principle and, to theextent consistent therewith, will foster maxi-mum individual flexibility and freedom ofindividual expression.

It is to promote the foregoing that this dec-laration is made and it is the intention ofOceanic Properties, Inc. that it will be inrecognition of the foregoing that the limita-tions, restrictions, covenants and conditionsof this declaration and of all other declara-tions supplemental hereto will be under-stood and construed.

Article I. Definitions.

Unless the context otherwise specifies orrequires, the terms defined in this Article Ishall, for all purposes of The Sea RanchRestrictions, have the meanings hereinspecified.

Architect.

The term “architect” shall mean a personholding a certificate to practice architecturein the State of California under authority ofDivision 3, Chapter 3, of the Business andProfessions Code of the State of California;provided, however, that for the purposes ofArticle IV, the term “architect” shall mean aperson appropriately licensed to practicearchitecture or landscape architecture inany of the United States.

Articles.

The term “Articles” shall mean the Articlesof Incorporation of The Sea Ranch Associa-tion which are or shall be filed in the Officeof the Secretary of State of the State of Cal-ifornia. Such Articles of Incorporation mayfrom time to time be amended.

Assessed Value.

The term “assessed value” shall mean the

aggregate value of any lot and improve-ments located thereon, as from time to timeshown on the latest Assessment Roll of theCounty of Sonoma.

Association.

The term “Association” shall mean The SeaRanch Association, the nonprofit member-ship corporation described in Article V, itssuccessors and assigns.

Board.

The term “Board” shall mean the Board ofDirectors of the Association.

Bylaws.

The term “Bylaws” shall mean the bylaws ofthe Association which are or shall be adopt-ed by the Board. Such bylaws may fromtime to time be amended.

Common Area.

The term “common area” shall mean all ofthe real property designated “CommonArea” on a subdivision map which has beenconveyed in fee to the Association pursuantto section 9.05, together with all of the im-provements from time to time constructedthereon.

Condominium.

The term “condominium” shall mean a con-dominium as defined in Section 783 of theCivil Code of the State of California.

Cost of Living Index.

The term “Cost of Living Index” shall meanthe United States Department of Labor’sBureau of Labor Statistics Consumer PriceIndex, all items, U.S. City Average (1957-59equals 100), or the successor of such Index.

Design Committee.

The term “Design Committee” shall meanthe committee created pursuant to Article IV.

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Design Committee Rules.

The term “Design Committee Rules” shallmean rules adopted by the Design Com-mittee pursuant to section 4.04.

Development Assessment Certificate.

The term “Development Assessment Cer-tificate” shall mean any certificate recordedpursuant to paragraph (h) of section 7.03.

Development Fund.

The term “development fund” shall meanthe fund created pursuant to section 6.05.

Excavation.

The term “excavation” shall mean any dis-turbance of the surface of the land (exceptto the extent reasonably necessary forplanting) which results in the removal ofearth, rock or other substance from a depthof more than eighteen (18) inches below thenatural surface of such land.

File; Filed.

The term “file” or “filed” shall mean, withrespect to the subdivision map, that saidsubdivision map shall have been filed inthe Office of the Recorder of the Countyof Sonoma, State of California.

Fill.

The term “fill” shall mean any addition ofrock or earth materials to the surface of theland which increases the natural elevationof such surface by more than eighteen(18) inches.

Fiscal Year.

The term “fiscal year” shall mean the yearfrom May 1 through April 30.

Grantor.

The term “Grantor” shall mean OceanicProperties, Inc., its successors and assigns.

Guest.

The term “Guest” shall mean any invitee ofa participating facility, including the mem-bers of such invitee’s immediate family,using, in the regular course of the opera-tions thereof, its accommodations orservices.

Improvements.

The term “improvements” shall includebuildings, outbuildings, roads, driveways,parking areas, fences, retaining walls, stairs,decks, hedges, windbreaks, poles, signs,and any structures of any type or kind.

Indigenous Specie.

The term “indigenous specie” shall mean aspecie of ground cover, shrub or tree listedin the Design Committee Rules.

Lot.

The term “lot” shall mean any lot designat-ed on a subdivision map for residential use,or, with respect to a project, any condomini-um; provided, however, that (a) upon thesplitting of any lot pursuant to paragraph (a)of section 9.04, “lot” shall mean each parcelor condominium into which such lot hasbeen split, and (b) upon consolidation oftwo or more lots pursuant to paragraph (b)of section 9.04, “lot” shall mean the parcelconsisting of the lots so consolidated.

Lot Splitting.

The term “lot splitting” shall mean the divi-sion of any lot within The Sea Ranch intotwo or more parcels or condominiums, andshall include a “subdivision” within themeaning of Division 4, Part 2, Chapter 1 ofthe Business and Professions Code of theState of California.

Maintenance Assessment.

The term “maintenance assessment” shallmean any assessment levied pursuant tosection 6.02.

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Manager.

The term “manager” shall mean the personor corporation appointed as such pursuantto paragraph (e) of section 5.05.

Miscellaneous Fee.

The term “miscellaneous fee” shall meanany fee charged pursuant to sections 3.03,4.06, or 6.08.

Mortgage; Mortgagee.

The term “mortgage” shall mean a deed oftrust as well as a mortgage, and the term“mortgagee” shall mean a beneficiary under,or a holder of a deed of trust as well as amortgagee.

Notice.

The term “notice” shall mean a notice deliv-ered pursuant to section 9.09.

Operating Fund.

The term “operating fund” shall mean thefund created pursuant to section 6.01.

Owner.

The term “Owner” shall mean the person orpersons holding the beneficial ownership ofa lot; provided, however, that

(a) for the purposes of the limitations andrestrictions set forth in Article III, “Own-er” shall not include Grantor with re-spect to any lots held by Grantor; and

(b) “Owner” shall include for the purposesof Article III and sections 7.01 and 7.04,unless the context otherwise requires,the family, invitees, licensees and les-sees of any Owner.

Participating Facility.

The term “participating facility” shallmean any organization or institution,whether profit or nonprofit, which hasentered into an agreement with Grantor

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or the Association pursuant to Article VIII. (Note: Article VIII was repealed by vote of the membership and adopted by Resolu- tion No. 1 on July 9, 1988.)

Permitted User.

The term “permitted user” shall mean any Owner permitted to use a private recreation- al facility pursuant to section 7.04.

Private Area.

The term “private area” shall mean any real property designated as a residential lot on a subdivision map, exclusive of the portion thereof designated, “Restricted Private Area,” which is conveyed to an Owner by means of a deed, together with all improve- ments from time to time constructed thereon.

Private Facility Development Assessment.

The term “private facility development assessment” shall mean any assessment levied pursuant to section 6.07.

Private Recreational Facility.

The term “private recreational facility” shall mean any recreational facility developed or proposed to be developed pursuant to sec- tion 7.03.

Project.

The term “project” shall mean the entire parcel of real property divided, or to be divided into condominiums, including all structures thereon.

Project Area.

The term “project area” shall mean all of the real property within The Sea Ranch lying within the boundaries of any project and designated “Project Area” on a subdivision map.

Project Committee.

The term “Project Committee” shall mean the governing body of any project.

Public Facility Development Assessment.

The term “public facility development assessment” shall mean any assessment levied pursuant to section 6.06. Public Recreational Facility.

The term “public recreational facility” shall mean any recreational facility developed or proposed to be developed pursuant to sec- tion 7.02. Record; Recorded.

The term “record” or “recorded” shall mean, with respect to any document, that said doc- ument shall have been recorded in the Of- fice of the Recorder of the County of Sono- ma, State of California. Recreational Assessment.

The term “recreational assessment” shall mean any assessment levied pursuant to section 6.03. Recreational Facility.

The term “recreational facility” shall mean any improvement used for or in connection with any recreational purpose. Refinish.

The term “to refinish” shall include to paint and to resurface. Residence.

The term “residence” shall mean the build- ing or buildings, including any garage, car- port, or similar outbuilding, used for resi- dential purposes. Restricted Common Area.

The term “restricted common area” shall mean all of the real property designated “Restricted Common Area” on a subdivision map which has been conveyed in fee to the Association pursuant to section 9.05, to- gether with all of the improvements from time to time constructed thereon.

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Restricted Private Area.

The term “restricted private area” shall mean the portion of each lot conveyed to an Owner by means of a deed which is desig- nated “Restricted Private Area” on a subdi- vision map.

Road.

The term “road” shall mean any paved ve- hicular way constructed within or upon any portion of common area or restricted com- mon area designated a private road on a subdivision map except any apron or other paved area constructed for the purpose of providing paved access from such way to any private area or project area.

Special Assessment.

The term “special assessment” shall mean any assessment levied pursuant to sec- tion 6.04.

Structure.

The term “structure” shall mean anything constructed or erected, the use of which requires location on the ground or attach- ment to something having location on the ground.

Subdivision Map.

The term “subdivision map” shall mean (a) any final map within the meaning of the provisions of Division 4, Part 2, Chapter 2, of the Business and Professions Code of the State of California, (b) any final plan within the meaning of the provisions of Division 4, Part 5 of the Civil Code of the State of California, or (c) any final record of survey map within the meaning of the provisions of Division 4, Part 2, Chapter 2, of the Business and Professions Code of the State of California, as such provisions may from time to time be amended.

The Sea Ranch.

The term “The Sea Ranch” shall mean all of the real property referred to in section 2.01

together with such other real property from time to time annexed thereto pursuant to the provisions of section 2.02. The Sea Ranch Restrictions.

The term “The Sea Ranch Restrictions” shall mean, with respect to all property with- in The Sea Ranch, the limitations, restric- tions, covenants, and conditions set forth in this declaration, as such declaration may from time to time be amended pursuant to section 9.01, and, with respect to any prop- erty within The Sea Ranch which is annexed pursuant to section 2.02, as such declara- tion may from time to time be supplemented or modified by the provisions of a decla- ration, if any, filed with respect to such property pursuant to paragraph (a) of sec- tion 2.02. The Sea Ranch Rules.

The term “The Sea Ranch Rules” shall mean the rules from time to time in effect pur- suant to the provisions of section 5.06. Unallocated Balance.

The term “unallocated balance” shall mean that portion of the development fund which is not attributable to private facility develop- ment assessments or to public facility de- velopment assessments levied for the devel- opment of a given public recreational facili- ty, and which has not been allocated pur- suant to paragraph (g) of section 7.02. Unit.

The term “unit” shall mean the portion of any condominium not owned in common with the owners of other condominiums in a project. Use Fee.

(a) With respect to a participating facility, the term “use fee” shall mean any fee paid or to be paid by such participating facility pursuant to section 8.05.

(b) With respect to a public recreational fa-cility, the term “use fee” shall mean any feecharged or to be charged Owners andGuests by the Association for the use there-of pursuant to paragraph (f) of section 7.02.

Visible from Neighboring Property.

The term “visible from neighboring proper-ty” shall mean, with respect to any givenobject or activity, that such object or activityis or would be in any line of sight originat-ing from any point six feet above any otherproperty, excluding contiguous propertyowned by the Owner of the property in-volved, but including common area and re-stricted common area, assuming that suchother property has an elevation equal to thehighest elevation of the ground surface ofthat portion of the property upon whichsuch object or activity is located.

Article II. The Sea Ranch— Property Subject to The Sea Ranch Restrictions.

Section 2.01. The Sea Ranch: Initial Development.

Grantor hereby declares that all of the realproperty located in the County of Sonoma,State of California, described as follows:

The Sea Ranch No. 1, all as shown on that cer-tain subdivision map entitled “The Sea RanchNo. 1, Tract No. 342,” filed in the Office of theRecorder of the County of Sonoma, State ofCalifornia, on the 10th day of May 1965, inBook 104 of Maps at Page 5.

is held and shall be held, conveyed, hypo-thecated, encumbered, leased, rented, used,occupied and improved, subject to The SeaRanch Restrictions, meaning the limitations,restrictions, covenants and conditions setforth in this declaration, all of which are

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declared and agreed to be in furtheranceof a plan for the subdivision, improvementand sale of said real property and are estab-lished and agreed upon for the purpose ofenhancing and perfecting the value, desir-ability and attractiveness of said real prop-erty and every part thereof. All of The SeaRanch Restrictions shall run with said realproperty and shall be binding upon andinure to the benefit of Grantor, the Associa-tion, each Owner of said real property, orany part thereof, and each successor in in-terest of such Owner. Said real property,together with such other real property fromtime to time annexed thereto and made sub-ject to The Sea Ranch Restrictions pursuantto section 2.02 shall constitute The SeaRanch.

Section 2.02. The Sea Ranch: Annexation ofSubsequent Developments.

Grantor may, pursuant to the following pro-visions of this section, from time to timeand in its sole discretion, annex to The SeaRanch all or any part of the real property(not then constituting a part of The SeaRanch) described in that certain deed fromElmer Ohlson, Ernest Ohlson, Edward J.Ohlson, individually, and Edward J. Ohlson,Executor of the Will of Chester L. Ohlson, Deceased, as grantors, and Oceanic Proper-ties, Inc., as grantee, dated February 27,1964, and recorded in the Office of the Re-corder of the County of Sonoma, State ofCalifornia, on February 28, 1964, in Book2025, Page 870, of Official Records of saidCounty of Sonoma, and such other realproperty from time to time acquired byGrantor.

(a) The annexation of any such property shallbecome effective when, and only when, the lastof each of the following events occurs:

(1) Grantor shall have recorded a declara-tion which may consist of more than onedocument and which shall, among otherthings:

(d) Any provision herein to the contrary notwith-standing, the declaration referred to in para-graph (a) above may, with respect to all or anypart of the property described in said declara-tion, provide for, or refer to one or more docu-ments creating any or all of the following:

(1) Such new land classifications not thenprovided for in section 3.01, and such limi-tations, restrictions, covenants and condi-tions with respect to the use thereof asGrantor may deem to be appropriate forthe development of such property;

(2) With respect to the land classificationthen provided for in section 3.01, such addi-tional or different limitations, restrictions,covenants and conditions with respect tothe use thereof as Grantor may deem to beappropriate for the development of suchproperty; provided, however, that such ad-ditional or different limitations, restrictions,covenants and conditions applicable tocommon areas and restricted commonareas lying within such property shall notdiscriminate between Owners and Guestsor between Owners of such property andother Owners of any other property withinThe Sea Ranch; and/or

(3) A declaration of restrictions, subordinat-ed to The Sea Ranch Restrictions and ap-plicable exclusively to a project.

The Sea Ranch Restrictions as applicable tosuch property upon the annexation thereofinto The Sea Ranch, shall be deemed to in-clude any and all additions and modifica-tions thereto authorized by subparagraphs(1) and (2) above and set forth or referred toin said declaration.

(aa) describe the real property which isto be annexed to The Sea Ranch,

(bb) set forth or refer to such additionalor other limitations, restrictions, cove-nants, conditions, applicable to suchproperty, as provided in paragraph(d) below,

(cc) declare that such property is heldand shall be held, conveyed, hypothe-cated, encumbered, leased, rented,used, occupied and improved, subjectto The Sea Ranch Restrictions, and

(dd) state that the provisions of para-graph (b) below have been compliedwith; and

(2) With respect to the real property de-scribed in said declaration, Grantor shallhave filed a subdivision map.

(b) Prior to the annexation of any such propertyGrantor shall estimate the maintenance assess-ment that would be assessed for the first full fis-cal year following annexation pursuant to para-graph (b) of section 6.02 assuming such prop-erty were annexed to The Sea Ranch. If suchestimated maintenance assessment exceedsthe limit set forth in paragraph (e) of section6.02 (such limit also to be determined as if suchproperty were annexed to The Sea Ranch),then such property shall not be annexed unlessand until such annexation has been approvedby the vote or written consent of Owners, otherthan Grantor, owning not less than fifty-onepercent (51%) of the lots then within The SeaRanch, exclusive of any lots owned by Grantor.

(c) Upon any annexation becoming effective theproperty covered by such annexation shall be-come and constitute a part of The Sea Ranchand the Association, subject to the provisionsof section 9.05 with respect to common areaor restricted common area, shall have and shallaccept and exercise jurisdiction over such prop-erty as a part of The Sea Ranch.

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Article III. Land Classifications, Use and Restrictive Covenants.

Section 3.01. Land Classifications.

All land within The Sea Ranch has beenclassified into the following areas: (a) private area, (b) restricted private area,(c) common area, (d) restricted commonarea, and (e) project area.

Section 3.02. Private Area: Uses; Restrictions.

The private area of each lot shall be for theexclusive use and benefit of the Ownerthereof, subject, however, to all of the fol-lowing limitations and restrictions:

(a) The Association, or its duly authorizedagents, shall have the right at any time, andfrom time to time, without any liability to theOwner for trespass or otherwise, to enter uponany private area for the purpose:

(1) of maintaining such private area, as pro-vided for in paragraph (e) of section 5.04,

(2) of maintaining restricted private area,common area and restricted common area,

(3) of removing any improvement construct-ed, reconstructed, refinished, altered ormaintained upon such private area in vio-lation of paragraph (a) of section 3.03,

(4) of restoring or otherwise reinstatingsuch private area as authorized by para-graph (b) of section 3.03, and (5) of other-wise enforcing, without any limitation, all ofthe restrictions set forth in this section andin section 3.03.

(b) No improvement, excavation or other workwhich in any way alters any private area fromits natural or improved state existing on thedate such private area was first conveyed infee by Grantor to an Owner shall be made ordone except upon strict compliance with, and

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within the restrictions of, the provisions of sec-tion 3.03.

(c) The private area of each lot shall be usedexclusively for residential purposes, and nomore than one family (including its servantsand transient guests) shall occupy such privatearea; provided, however, that nothing in thisparagraph (c) shall be deemed to prevent

(1) any artist, artisan or craftsman from pur-suing his artistic calling upon private area ifsuch artist, artisan or craftsman:

(aa) also uses such private area for resi-dential purposes,

(bb) is self-employed and has no employ-ees working in such private area, and

(cc) does not advertise or offer any prod-uct or work of art for sale to the publicupon or from such private area;

(2) any medical doctor from using the pri-vate area of the lot described as Parcel 1as shown on that certain parcel map en-titled, “Parcel Map No. 61,” filed in theOffice of the Recorder of the County ofSonoma, State of California, on October 9,1969, in Book 136 of Maps at Page 43(being a portion of Lot 6, Block 6, as shownon that certain subdivision map entitled,“The Sea Ranch No. 1, Tract No. 342,” filedin the Office of said Recorder on May 10,1965, in Book 104 of Maps at Page 5) as amedical office so long as said medicaldoctor also uses said private area as hisresidence;

(3) the leasing of any lot from time to timeby the Owner thereof, subject, however, toall of the restrictions of The Sea RanchRestrictions; or

(4) subject to the provisions of paragraph (f)of this section, noncommercial agriculturaluses of the private area of lots of threeacres or more.

(d) Each private area, and any and all improve-ments from time to time located thereon, shallbe maintained by the Owner thereof in goodcondition and repair, and in such manner as notto create a fire hazard to The Sea Ranch, orany part thereof, all at such Owner’s sole costand expense.

(e) No noxious or offensive activity shall be car-ried on upon any private area, nor shall any-thing be done or placed thereon which may beor become a nuisance, or cause unreasonableembarrassment, disturbance, or annoyance toother Owners in the enjoyment of their privateor restricted private areas, or in their enjoymentof common, restricted common and projectareas. In determining whether there has beena violation of this paragraph recognition mustbe given to the premise that Owners, by virtueor their interest and participation in The SeaRanch, are entitled to the reasonable enjoy-ment of the natural benefits and surroundingsof The Sea Ranch. Without limiting any of theforegoing, no exterior speakers, horns, whistles,bells or other sound devices, except securitydevices used exclusively to protect the securityof the private area and improvements locatedthereon, shall be placed or used upon any pri-vate area.

(f) No domestic animals or fowl other than areasonable number of generally recognizedhouse or yard pets shall be maintained on anyprivate area; provided, however, that subject tothe provisions of paragraphs (c) and (e) above,and subject to such limitations as may fromtime to time be set forth in The Sea RanchRules,

(1) horses may be maintained within anenclosed private area, or any part thereof,of any lot of three (3) acres or more, provid-ed that there shall not be more than onesuch animal for each one acre of privatearea,

(2) cattle may be maintained within an en-closed private area, or any part thereof, ofany lot of ten (10) acres or more, providedthat there shall not be more than one such

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animal for each two (2) acres of privatearea,

(3) sheep or goats may be maintained with-in an enclosed private area, or any partthereof, of lots of ten (10) acres or more,provided that there shall not be more thanone such animal for each one acre of pri-vate area, and

(4) fowl may be maintained within anenclosed private area, or any part thereof,of lots of ten (10) acres or more.

(g) No tree or shrub shall be planted within anyprivate area and be permitted to grow to aheight in excess of eight (8) feet unless suchtree or shrub was at the time of its planting anindigenous specie.

(h) No signs whatsoever, including but withoutlimitation, commercial, political and similarsigns, visible from neighboring property, shallbe erected or maintained upon any privatearea, except

(1) such signs as may be required by legalproceedings,

(2) residential identification signs of a com-bined total face area of three (3) squarefeet or less for each residence,

(3) during the time of construction of anyresidence or other improvement, job identi-fication signs having a maximum face areaof six (6) square feet per sign and of thetype usually employed by contractors, sub-contractors and tradesmen, and

(4) not more than one “for sale” or “for rent”sign having a maximum face area of three(3) square feet, provided that if at the timeof any such desired use the Association isproviding “for sale” and “for rent” signs forthe use of Owners, the sign provided bythe Association and no other shall be used.

(i) No house trailer, mobile home, permanenttent, or similar facility or structure shall be kept,

placed or maintained upon any private area atany time; provided, however, that the provisionsof this paragraph shall not apply to temporaryconstruction shelters or facilities maintainedduring, and used exclusively in connection with,the construction of any work or improvementpermitted by section 3.03.

(j) No trailer of any kind, truck camper, or boatshall be kept, placed or maintained upon anyprivate area in such a manner that such trailer,truck camper or boat is visible from neighboringproperty; provided, however, that the provisionsof this paragraph shall not apply to temporaryconstruction shelters of facilities maintainedduring, and used exclusively in connection with,the construction of any work or improvementpermitted by section 3.03.

(k) No accessory structures or buildings shallbe constructed, placed or maintained upon anyprivate area prior to the construction of themain structure of the residence; provided, how-ever, that the provisions of this paragraph shallnot apply to temporary construction shelters orfacilities maintained during, and used exclusive-ly in connection with, the construction of themain structure of the residence.

(l) No trailer, vehicle or boat shall be construct-ed, reconstructed or repaired upon any privatearea in such manner that such construction, re-construction or repair is visible from neighboringproperty.

(m) Except as otherwise permitted by para-graph (o) below, all garbage and trash shall beplaced and kept in covered containers. In noevent shall such containers be maintained soas to be visible from neighboring property. Thecollection and disposal of garbage and trashshall be in strict compliance with The SeaRanch Rules.

(n) Outside clotheslines or other outside clothesdrying or airing facilities shall be maintainedexclusively within a fenced service yard andshall not be visible from neighboring property.

(o) The maintenance of accumulated waste

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plant materials is prohibited except as part ofan established compost pile which shall bemaintained in such manner as not to be visiblefrom neighboring property.

(p) There shall be no exterior fires whatsoeverexcept barbecue and incinerator fires containedwithin receptacles therefor and such other firesas may from time to time be permitted by TheSea Ranch Rules.

Section 3.03. Private Area: Construction and Alteration ofImprovements; Excavations; etc.

The right of an Owner to construct, recon-struct, refinish, alter or maintain any im-provement upon, under or above any privatearea, or to make or create any excavation orfill thereon, or to make any change in thenatural or existing surface drainage thereof,or to install any utility line (wire or conduit)thereon or thereover, or to destroy or re-move any tree therefrom, shall be subject toall of the following limitations and condi-tions of this section.

(a) Except to the extent permitted by paragraph(g) below, any construction or reconstruction ofor the refinishing or alteration of any part of theexterior of, any improvement upon any privatearea is absolutely prohibited until and unlessthe Owner of such private area first obtains theapproval therefor from the Design Committeeas herein provided and otherwise complies withall of the provisions of this section. The Asso-ciation shall remove any improvement con-structed, reconstructed, refinished, altered ormaintained in violation of this paragraph andthe Owner thereof shall reimburse the Associ-ation for all expenses incurred in connectiontherewith.

(b) Except to the extent reasonably necessaryfor the construction, reconstruction or alterationof any improvement for which the Owner hasobtained approved plans pursuant to thissection,

(1) no excavation or fill which would be

visible from neighboring property shall becreated or installed upon, and

(2) no change in the natural or existingdrainage for surface waters upon, and

(3) no power, telephone or other utility line(wire or conduit) which would be visiblefrom neighboring property shall be installedupon, and

(4) no living tree having a height of six (6)feet or more and having a trunk measuringsix (6) inches or more in any diameter atground level shall be destroyed or removedfrom, any private area until and unless theOwner of such private area first obtains theapproval therefor from the Design Commit-tee as herein provided and such Ownerotherwise complies with all of the provi-sions of this section. The Association shall,in the event of any violation of clause (1) orclause (2) above, restore such private areato its state existing immediately prior tosuch violation, in the event of any violationof clause (3) above, remove all unautho-rized power, telephone or other utility lines(wires or conduits) and, in the event of anyviolation of clause (4) above, replace anytree which has been improperly removed ordestroyed with either a similar tree in typeand size or with such other tree as the As-sociation may deem appropriate. The Own-er of such private area shall reimburse theAssociation for all expenses incurred by itin performing its obligations under thisparagraph; provided, however, that withrespect to the replacement of any tree theOwner shall not be obligated to pay anamount in excess of the expenses whichwould have been incurred by the Associa-tion had it elected to replace the destroyedor removed tree with a tree similar in typeand size.

(c) Any Owner proposing to construct or recon-struct, or to refinish or alter any part of the exte-rior of, any improvement on or within his privatearea, or to perform any work which under para-graph (b) above requires the prior approval of

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the Design Committee, shall apply to the De-sign Committee for approval as follows:

(1) The Owner shall notify the Design Com-mittee of the nature of the proposed work,and the Design Committee shall thereuponfurnish such Owner with a building guidewhich summarizes the ecological factorsrelevant to the design, construction andmaintenance of improvements at The SeaRanch and the various design controls andrestrictions applicable to the Owner’s pri-vate area. The Owner shall acknowledge byletter that he has read and studied the con-tents of the building guide, as shall any ar-chitect employed by the Owner to designthe proposed work. If the Design Commit-tee shall so request within ten (10) days fol-lowing its receipt of said letter of acknowl-edgement, the Owner and his architect, ifany, shall meet with a member of the De-sign Committee in order to benefit fromsuch member’s knowledge of and experi-ence with The Sea Ranch Restrictions, theDesign Committee Rules, and the ecologyof The Sea Ranch. Such meeting shall beat a mutually convenient time not to exceedsixty (60) days following the Design Com-mittee’s request therefor, and shall be heldat the office of the Association at The SeaRanch or at some other mutually conven-ient place.

(2) Following receipt by the Design Com-mittee of said letter of acknowledgementand following said meeting, if any, theOwner shall submit to the Design Commit-tee for approval such plans and specifica-tions for the proposed work as the DesignCommittee may from time to time request,including, when deemed appropriate by theDesign Committee, but without limitation,the following:

(aa) a plot plan of the lot showing (i) con-tour lines, (ii) the location of all existingand/or proposed improvements, (iii) theproposed drainage plan, (iv) the pro-posed sanitary disposal facilities, (v) thelocation of all existing trees having a

height in excess of six (6) feet and hav-ing a trunk measuring six (6) inches ormore in any diameter at ground level,(vi) such trees which the Owner propos-es to remove, and (vii) the location of allproposed utility installations;

(bb) floor plans;

(cc) drawings showing all elevations;

(dd) description of exterior materials andcolor, with samples;

(ee) working drawings and constructionspecifications; and

(ff) the Owner’s proposed constructionschedule.

The Design Committee shall require that thesubmission of plans and specifications beaccompanied by a reasonable plans inspec-tion fee in an amount not to exceed OneHundred Dollars ($100).

(3) If at any time following an Owner’snotification of the Design Committeepursuant to clause (1) above of his pro-posed work the Design Committee shalldetermine that it would be in the bestinterests of The Sea Ranch for suchOwner to employ an architect to designany improvement involved in the pro-posed work, the Design Committee shallinform such Owner in writing of its de-termination, whereupon all plans andspecifications submitted pursuant toclause (2) above must be prepared byan architect.

(d) Subject to the provisions of paragraph (e)below, the Design Committee shall approve theplans, drawings and specifications submitted toit pursuant to paragraph (c) only if the followingconditions shall have been satisfied:

(1) the Owner and the Owner’s architect, ifany, shall have strictly complied with theprovisions of paragraph (c) above; and

(2) the Design Committee finds that the

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plans and specifications conform to TheSea Ranch Restrictions, particularly to therequirements and restrictions of this sectionand to the Design Committee Rules in ef-fect at the time such plans were submittedto the Design Committee.

All such approval shall be in writing andmay be conditioned upon the submissionby the Owner or the Owner’s architect, ifany, of such additional plans and specifica-tions as the Design Committee shall deemappropriate for the purpose of insuring thatthe construction of the proposed improve-ment shall be in accordance with the ap-proved plans; provided, however, that plans,drawings and specifications which havebeen neither approved nor rejected withinforty-five (45) days from the date of submis-sion thereof to the Design Committee shallbe deemed approved. One set of plans asfinally approved shall be retained and main-tained by the Design Committee as a perma-nent record.

(e) Notwithstanding the provisions of para-graph (d) above, if within the forty-five (45) dayperiod referred to in said paragraph (d) themembers of the Design Committee, in theirsole discretion, unanimously find that the pro-posed work would, for any reason whatsoever(including the design, height or location of anyproposed improvement and the probable effectthereof on other Owners in the use and enjoy-ment of their private, restricted private, com-mon, restricted common or project areas) beincompatible with The Sea Ranch, then theDesign Committee shall not approve the plans,drawings and specifications submitted to it pur-suant to paragraph (c) above and shall so notifythe Owner concerned in writing setting forth thereasons for such disapproval.

(f) Grantor shall, upon the timely request of theDesign Committee, file with the Design Com-mittee copies of such of the plans and spec-ifications described in paragraph (c) above,which have been prepared by Grantor andwhich are deemed by the Design Committeeto be necessary for the purpose of maintaining

a permanent record of all Improvements con-structed or being constructed by Grantor uponany private area at the time such private areabecame a part of The Sea Ranch.

(g) Any provision herein to the contrary not-withstanding, any Owner may at any time, andfrom time to time, without first obtaining theapproval of the Design Committee and withoutotherwise complying with paragraph (c) above,reconstruct or refinish any improvement or anyportion thereof, excavate or make any other in-stallation, in such manner as may be set forthin the last plans thereof approved by the DesignCommittee and not revoked pursuant to para-graph (i) below or in the plans and specifica-tions filed pursuant to paragraph (f) above.

(h) Upon receipt of the approval from theDesign Committee pursuant to paragraph (d)above, the Owner shall, as soon as practicable,satisfy all conditions thereof and diligently pro-ceed with the commencement and completionof all construction, reconstruction, refinishing,alterations and excavations pursuant to theapproved plans.

(i) With reference to paragraph (h) above, Own-er shall satisfy all conditions and commence theconstruction, reconstruction, refinishing, alter-ations or other work pursuant to the approvedplans within one (1) year from the date of suchapproval. If the Owner shall fail to comply withthis paragraph any approval given pursuant toparagraph (d) above shall be deemed revokedunless upon the written request of the Ownermade to the Design Committee prior to the ex-piration of said one (1) year period and upon afinding by the Design Committee that there hasbeen no change in circumstances, the time forsuch commencement is extended in writing bythe Design Committee.

(j) With further reference to paragraph (h)above the Owner shall in any event completethe construction, reconstruction, refinishing oralteration of the foundation and all exterior sur-faces (including the roof, exterior walls, win-dows and doors) of any improvement on hisprivate area within one (1) year after commenc-

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ing construction thereof, except and for so longas such completion is rendered impossible orwould result in great hardship to the Owner dueto strikes, fires, national emergencies or naturalcalamities. If Owner fails to comply with thisparagraph, the Design Committee shall notifythe Association of such failure, and the Asso-ciation, at its option, shall either complete theexterior in accordance with the approved plansor remove the improvement, and the Ownershall reimburse the Association for all expensesincurred in connection therewith.

(k) Upon the completion of any construction orreconstruction of, or the alteration or refinishingof the exterior of, any improvement, or uponthe completion of any other work for which ap-proved plans are required under this section,the Owner shall give notice thereof to the De-sign Committee, and within sixty (60) daysthereafter the Design Committee, or its dulyauthorized representative, may inspect suchimprovement to determine whether it was con-structed, reconstructed, altered or refinished insubstantial compliance with approved plans. Ifthe Design Committee finds that such construc-tion, reconstruction, alteration, or refinishingwas not done in substantial compliance withapproved plans, it shall notify the Owner ofsuch noncompliance within such sixty (60) dayperiod and shall require the Owner to remedysuch noncompliance. If upon the expiration ofsixty (60) days from the date of such notificationthe Owner shall have failed to remedy suchnoncompliance, the Design Committee shallnotify the Association of such failure, and theAssociation, at its option, shall either removethe improvement or remedy the noncompliance,and the Owner shall reimburse the Associationfor all expenses incurred in connection there-with. If for any reason the Design Committeefails to notify the Owner of any such noncompli-ance within sixty (60) days after receipt of saidnotice of completion thereof from the Owner,the improvement shall be deemed to be inaccordance with said approved plans.

(l) The following standards and restrictionsare applicable to the construction, reconstruc-tion, alteration and refinishing of any and all

improvements from time to time existing uponprivate areas:

(1) No more than one (1) residence shall beconstructed on any lot; provided, however,that two (2) residences may be constructedon lots containing three (3) or more acres if:

(aa) such residences are designed as asingle visual element and are visuallyconnected by fences, berms, or othermajor landscape elements, and

(bb) the main structures of such resi-dences are separated by not more thantwo hundred fifty (250) feet. A guest suiteor like facility, without a kitchen, visuallyattached to the main residence structurewith a minimum connecting structure of awall or fence not less than six (6) feethigh or a covered walk, shall be deemedto be included as part of the singleresidence.

(2) No corral, barn or other improvement tohouse horses, and no tennis court shall beconstructed or maintained on any lot con-taining less than three (3) acres, and nostructure to house sheep, goats, cattle orfowl shall be constructed or maintained onany lot containing less than ten (10) acres.

(3) All improvements shall be constructed inaccordance with applicable building line,setback, and height provisions set forth onthe subdivision map; provided, however,that with the consent of the Design Commit-tee and if permissible by law, a carport orgarage may be constructed on a propertyline if such carport or garage:

(aa) is designed together with, and as anintegral part of, the carport or garage ofan adjacent property owner, and

(bb) is detached from any part of themain residence structure by a minimumdistance of twenty (20) feet. Height shallbe measured from the natural grade onthe highest side of the improvement to

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the highest point of the roof or any pro-jection therefrom.

(4) No reflective finishes (other than glass)shall be used on exterior surfaces (otherthan surfaces of hardware fixtures), includ-ing but without limitation, the exterior sur-faces of any of the following: roofs, all pro-jections above roofs, retaining walls, doors,trim, fences, pipes, equipment, mailboxesand newspaper tubes.

(5) The colors of all exterior surfaces shallbe shades of grey or brown of values be-tween black and white or shades of grey-greens or brown-greens (such as russet,citrine, and olive) of values between blackand medium, and the value range for eachlot shall be further limited by the applicableletter key, if any, set forth on a subdivisionmap, as follows:

(aa) the value range for “A” lots shall bewhite to medium;

(bb) the value range for “B” lots shall bemedium light to medium dark; and

(cc) the value range for “C” lots shall bemedium to dark.

(6) No roof shall be finished with built-up tarand gravel; provided, however, that built-up tar and dark gravel of values betweenbrown and black may be used to finish thatflat roof or a carport if in the opinion of theDesign Committee such carport is design-ed as an integral part of a high fence.

(7) Except for nails, bolts, other approvedconnecting devices and hardware fixturesused in connection therewith, all fences,screens and similar exterior structures shallbe constructed solely of wood; provided,however, that subject to the provisions ofsubparagraph (4) above, retaining walls,fences used to enclose animals and fowlas contemplated by paragraph (f) of sec-tion 3.02, and tennis court fencing may beconstructed of other material.

(8) Each residence shall contain parkingspace within the private area for at leasttwo (2) automobiles by one of the followingmeans:

(aa) a garage either attached to or de-tached from the main structure of theresidence;

(bb) a carport enclosed on not less thantwo (2) sides, either attached directly tothe main structure of the residence orconnected by a roof or major fence;

(cc) an exterior parking area enclosed onnot less than two (2) sides by a five (5)foot fence or planted berm; or

(dd) an exterior parking area not visiblefrom neighboring property.

(9) Each residence shall contain a fencedservice yard enclosing all abovegroundtrash and garbage receptacles, exteriorincinerators, clotheslines and other mainte-nance and service facilities used by theOwner.

(10) Each residence shall contain a sewagedisposal system approved by the DesignCommittee and the public authority, if any,having jurisdiction. In no event shall sew-age be discharged directly or indirectly, intothe ocean, any creek, marsh, river, soundor beach or shoreline or bank thereof.

(11) All fuel tanks, water tanks or towers,or similar storage facilities shall either beconstructed as an integral part of the mainstructure of the residence or shall be in-stalled or constructed underground.

(12) No water well or other independentwater supply works or facility shall be con-structed or maintained within any privatearea of less than one (1) acre as long asthere is available to such private area asource of water supplied through one ormore water distribution systems ownedand maintained by the Association, a publicutility corporation, a mutual water company

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or any governmental entity or organization.

(13) There shall be no exterior lighting ofany sort either installed or maintained, thelight source of which is visible from neigh-boring property.

(14) There shall be no antenna of any sorteither installed or maintained, which is visi-ble from neighboring property.

Section 3.04. Restricted Private Area: Uses, Restrictions.

The restricted private area of each lot shallbe for the exclusive use and benefit of theOwner thereof, subject to all of the followinglimitations and restrictions, the major pur-pose of which is to assure that restrictedprivate area is maintained in its naturalstate, visually indistinguishable from ad-jacent common area:

(a) The Association, or its duly authorizedagents, shall have the right at any time, andfrom time to time, without any liability to theOwner for trespass or otherwise, to enter uponany restricted private area for the purpose:

(1) of maintaining such restricted privatearea, as provided for in paragraph (d) ofsection 5.04.

(2) of maintaining private area, commonarea, and restricted common area,

(3) of removing any improvement construct-ed, reconstructed or maintained upon suchrestricted private area in violation of para-graph (a) of section 3.07, and

(4) of otherwise enforcing the restrictionsset forth in this section and section 3.07.

(b) No improvement, excavation or other workwhich in any way alters such restricted privatearea (including the vegetation growing on suchrestricted private area) from its natural or exist-ing state on the date such restricted privatearea was first conveyed to an Owner in feeshall be made or done except upon strict

compliance with, and within the restrictions andlimitations of, the provisions of section 3.07.

(c) There shall be no use of restricted privatearea whatsoever except:

(1) any use contemplated by any improve-ment permitted under paragraph (b) above,and

(2) natural recreational uses which do notinjure or scar the restricted private area orthe vegetation thereon, increase the cost ofmaintenance thereof, or cause unreason-able embarrassment, disturbance or annoy-ance to other Owners in their enjoyment oftheir private and restricted private areas, orin their enjoyment of common and restrict-ed common and project areas.

Section 3.05. Common Area: Uses; Restrictions.

The exclusive use of common area shallbe reserved equally to all Owners and toGuests, subject, however, to the followinglimitations and restrictions:

(a) The use of common area shall be subject toThe Sea Ranch Rules.

(b) The use of common area shall be subject tosuch easements and rights of way reservedtherefrom at the time of the conveyance thereofby Grantor to the Association, to such road andpublic utility easements and rights of way asmay from time to time be taken under power ofeminent domain and to such other road andpublic and private utility easements as mayfrom time to time be granted or conveyed bythe Association pursuant to the provisions ofparagraph (d) of section 5.05.

(c) No improvement, excavation or other workwhich in any way alters any common area fromits natural or existing state on the date suchcommon area was conveyed by Grantor to theAssociation pursuant to section 9.05 shall bemade or done except upon strict compliancewith, and within the restrictions and limitationsof, the provisions of section 3.07.

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(d) Any portion of common area reserved ona subdivision map for development of a recre-ational facility may be developed into one ormore recreational facilities pursuant to the pro-visions of Article VII. Such portion shall be usedas common area until such time as any suchrecreational facility is developed. Upon the de-velopment of any public recreational facility bythe Association pursuant to the provisions ofsection 7.02 such facility may be used by anyOwner or Guest, subject to the provisions ofThe Sea Ranch Rules with respect to such use.Upon the development of any private recrea-tional facility by Owners pursuant to the provi-sions of section 7.03, such facility shall be usedexclusively by Owners who become permittedusers, subject to the provisions of The SeaRanch Rules with respect to such use.

(e) Except to the extent otherwise permittedpursuant to the provisions of paragraph (d)above and section 3.07, there shall be no useof common area, exclusive of roads, exceptnatural recreational uses which do not injure orscar the common area or the vegetation there-on, increase the cost of maintenance thereof,or cause unreasonable embarrassment, distur-bance or annoyance to Owners in their enjoy-ment of their private and restricted privateareas, or in their enjoyment of common, re-stricted common and project areas. Withoutlimiting the generality of the foregoing,

(1) there shall be no camping in commonarea except in areas developed therefor bythe Association or by Owners pursuant toparagraph (d) above,

(2) there shall be no fires started or main-tained on common area except:

(aa) fires started and controlled by theAssociation incidental to the maintenanceand preservation of property within TheSea Ranch, and

(bb) cooking and campfires in picnic andother areas within recreational facilitiesdeveloped therefor by the Association orby the Owners pursuant to paragraph (d)above, and

(3) no animals shall be permitted on com-mon area except:

(aa) generally recognized house or yardpets when accompanied by and underthe control of the Owners to whom theybelong,

(bb) sheep, cattle or horses when usedfor grazing purposes by the Association,and

(cc) horses upon paths and other areasfrom time to time designated as bridlepaths by the Association and upon suchareas developed as equestrian recre-ational facilities by the Association orOwners pursuant to paragraph (d) above.

Section 3.06. Restricted Common Area: Uses, Restrictions.

The exclusive use of restricted commonarea shall be reserved equally to the Ownersof condominiums within projects which arecontiguous to such restricted common area,subject, however, to all of the following limi-tations and restrictions:

(a) All of the limitations and restrictions setforth in paragraphs (a), (b), (c) and (e) of sec-tion 3.05 with respect to the use of commonarea by Owners and Guests shall be applicableto the use of restricted common area by Own-ers of condominiums within projects which arecontiguous to such restricted common area.

(b) Any portion of restricted common area re-served on the subdivision map for developmentof a recreation facility which is contiguous tocommon area may be developed into one ormore recreational facilities pursuant to the pro-visions of Article VII. Such portion shall be usedas restricted common area until such time assuch recreational facility is developed. Upon thedevelopment of either a public recreational facil-ity or a private recreational facility, such facilityshall be used as if such recreational facility hadbeen developed on common area, as providedfor in paragraph (d) of section 3.05. Any portionof restricted common area reserved on the sub-

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division map for development of a recreationalfacility which is not contiguous to common areamay be developed into one or more private rec-reational facilities pursuant to the provisions ofsection 7.03, but only by Owners who are enti-tled to use the restricted common area in-volved. Until such development such portionshall be used as restricted common area.

Section 3.07. Common Area, RestrictedCommon Area, and Restricted PrivateArea: Construction and Alteration ofImprovements; Excavations; etc.

No improvement, excavation or work whichin any way alters any common or restrictedcommon area from its natural or existingstate on the date such common or restrictedcommon area was conveyed by Grantor tothe Association pursuant to section 9.05, orwhich in any way alters any restricted pri-vate area (including any vegetation growingthereon) from its natural or existing state onthe date such restricted private area wasfirst conveyed to an Owner in fee, shall bemade or done except upon strict compliancewith, and within the restrictions and limita-tions of the following provisions of thissection.

(a) Except to the extent otherwise provided inparagraphs (d), (e) and (f) below, no personother than the Association or its duly authorizedagents shall construct, reconstruct, refinish,alter or maintain any excavation or fill upon, orshall change the natural or existing drainage of,or shall destroy or remove any tree, shrub orother vegetation from, or plant any tree, shrubor other vegetation upon, restricted privatearea, common area or restricted common area.

(b) Except to the extent otherwise provided inparagraph (c) below, if the Association propos-es to construct or reconstruct, or to refinish oralter the exterior of, any improvement locatedor to be located upon common area or restrict-ed common area, or if the Association proposesto make or create any excavation or fill, or tochange the natural or existing drainage of sur-face waters, or to remove any trees, shrubs orground cover, or to plant any trees, shrubs or

ground cover upon any restricted private area,common area or restricted common area, theAssociation shall submit to the Design Commit-tee for approval two sets of final plans andspecifications for any such work in such formand containing such information as the DesignCommittee may from time to time require. TheDesign Committee shall approve the plans andspecifications submitted to it pursuant to thisparagraph only if all of the following conditionshave been satisfied:

(1) If the plans are to construct any newimprovement, including any alteration ofthe exterior appearance of any existing im-provement, upon any common area or re-stricted common area, the Design Commit-tee finds that such improvement complieswith the standards and restrictions whichare set forth in subparagraphs (4) through(7), inclusive, of paragraph (1) of section3.03, with respect to private area, whichstandards and restrictions shall apply tocommon area and restricted common area,and that such improvement:

(aa) is reasonably necessary for anyutility installation serving any propertywithin The Sea Ranch or any participat-ing facility,

(bb) is desirable in order to provide orimprove access to or enhance the useand enjoyment of any property withinThe Sea Ranch,

(cc) is desirable to protect, support orpreserve any property within The SeaRanch, or

(dd) is reasonably necessary for theconstruction of a recreational facilitypursuant to the provisions of Article VII;

(2) If the plans are to make any excavation,or to remove any trees or shrubs, or toplant any trees or shrubs upon any restrict-ed private area, the written consent of theOwner of such restricted private area hasbeen obtained; and

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(3) The Design Committee finds in its solediscretion that the proposed work shall notmaterially prejudice The Sea Ranch or anyOwner in the use and enjoyment of hisproperty.

All such approval shall be in writing; provid-ed, however, that plans which have neitherbeen approved nor rejected within forty-five(45) days from the date of submission there-of to the Design Committee shall be deemedapproved. One set of plans as finally ap-proved shall be retained and maintained bythe Design Committee as a permanent rec-ord. Rejection of plans by the Design Com-mittee shall be in writing and shall set forthwith particularity the reasons for such rejec-tion. If plans which relate to the construc-tion of a recreational facility pursuant to theprovisions of Article VII are rejected for fail-ure to satisfy the conditions set forth inclause (dd) to subparagraph (1) above or insubparagraph (3) above, such plans shall bedeemed approved by the Design Committeeif the Association reaffirms its approval ofsuch recreational facility pursuant to para-graph (e) of section 7 .02 or paragraph (e) ofsection 7.03.

(c) The Association may at any time, and fromtime to time

(1) reconstruct, replace or refinish anyimprovement or portion thereof upon com-mon area or restricted common area inaccordance with:

(aa) the last plans thereof approved bythe Design Committee pursuant toparagraph (c) above,

(bb) the plans filed by Grantor with theDesign Committee pursuant to para-graph (g) below, or

(cc) if neither of the foregoing clauses isapplicable and if such improvement exist-ed upon common area or restricted com-mon area when such common area orrestricted common area was conveyed

by Grantor to the Association, then inaccordance with the original design, fin-ish or standard of construction of suchimprovement when such common areaor restricted common area was conveyedby Grantor to the Association;

(2) construct, reconstruct, replace or refin-ish any road improvement upon any portionof common area or restricted common areadesignated on a subdivision map as a pri-vate road;

(3) with respect to restricted private area,common area and restricted common area,replace destroyed trees or other vegetation,and, to the extent that the Associationdeems necessary for the conservation ofwater and soil, plant trees, shrubs andground cover which at the time of suchplanting are of indigenous species; and

(4) place and maintain upon common areaand restricted common area such signs andmarkers as the Association may, in its solediscretion, deem necessary for the identifi-cation of The Sea Ranch and of roads, theregulation of traffic, including parking, theregulation and use of common area, re-stricted common area and restricted privatearea, and for the health, welfare and safetyof Owners and Guests.

(d) An Owner may at any time, and from time totime,

(1) install and maintain within commonarea, restricted common area or his restrict-ed private area any subsurface sewagedisposal or other utility system approved bythe Design Committee pursuant to the pro-visions of section 3.03;

(2) construct or reconstruct on commonarea or his restricted private area a waywhich provides access between a road andhis private area and which has been ap-proved by the Design Committee pursuantto the provisions of section 3.03; provided,however, that if the Design Committee shall

24

so require, such way shall be paved; andprovided further, that no more than onedriveway shall be so constructed for any lotunless the Design Committee finds that oneor more additional driveways are reason-ably necessary for the use and enjoymentof the lot and will not adversely affect TheSea Ranch; and

(3) construct or reconstruct on commonarea, restricted common area or his restrict-ed private area, as the case may be, anyimprovement which may be necessary toprotect, support or preserve his private areaor restricted private area; provided, howev-er, that:

(aa) such Owner shall comply with theprovisions of section 3.03 as if such im-provement were to be constructed or re-constructed on private area, and

(bb) the Design Committee may requireas a condition of its approval of suchconstruction or reconstruction the sub-mission, at the cost and expense of suchOwner, of one or more opinions fromsuch professional consultants as itdeems to be appropriate in order toestablish the necessity for such con-struction or reconstruction.

(e) A Project Committee may at any time, andfrom time to time,

(1) construct or reconstruct on commonarea and restricted common area a waywhich provides access between a road andthe project area involved and which hasbeen approved by the Design Committeepursuant to the provisions of section 3.09;provided, however, that if the Design Com-mittee shall so require, such way shall bepaved; and provided further, that no morethan two driveways shall be so constructedfor any project area unless the DesignCommittee finds that one or more additionaldriveways are reasonably necessary for theuse and enjoyment of the project area andwill not adversely affect The Sea Ranch;and

(2) construct or reconstruct on commonarea or restricted common area, as thecase may be, any improvement whichmay be necessary to protect, support orpreserve the project area involved; provid-ed, however, that:

(aa) such Project Committee shall com-ply with the provisions of section 3.09 asif such improvement were to be construc-ted or reconstructed on project area, and

(bb) the Design Committee may requireas a condition of its approval of suchconstruction or reconstruction the sub-mission of one or more opinions fromsuch professional consultants as the De-sign Committee deems to be appropriatein order to establish the necessity forsuch construction or reconstruction.

(f) At any time, and from time to time, within two(2) years following conveyance of common areaor restricted common area, as the case may be,by Grantor to the Association pursuant to sec-tion 9.05, Grantor may construct, reconstruct,refinish or alter any improvement upon, ormake or create any excavation or fill upon, orchange the natural or existing drainage of, orremove or plant any trees, shrubs or groundcover upon, such common area or restrictedcommon area if Grantor shall determine thatany such work:

(1) is reasonably necessary for any utilityinstallation serving any property within TheSea Ranch or any participating facility,

(2) is reasonably necessary for the con-struction of any public recreational facility,

(3) is desirable in order to provide or im-prove access to or to enhance the use andenjoyment of such common area or restrict-ed common area, or

(4) is desirable to protect, support or pre-serve any property which constitutes a partof The Sea Ranch.

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(g) Grantor shall from time to time file with theDesign Committee such plans and specifica-tions as it may have in its possession and asthe Design Committee may deem necessary forthe purpose of maintaining a permanent recordof improvements constructed by Grantor oncommon area or restricted common area priorto or within two (2) years following the timesuch common area or restricted common areawas conveyed by Grantor to the Association.

Section 3.08. Project Area: Uses; Restrictions.

Project area shall be for the exclusive useand benefit of the Owners of condominiumswithin the project involved, subject, howev-er, to all of the following limitations andrestrictions:

(a) The Association, or its duly authorizedagents, shall have the right at any time, andfrom time to time, without any liability to theProject Committee or to the Owner of any con-dominium within the project for trespass or oth-erwise, to enter upon any project area for thepurpose:

(1) of maintaining all or any part of the proj-ect area, as provided for in paragraph (e) ofsection 5.04,

(2) of maintaining private area, restrictedprivate area, common area and restrictedcommon area,

(3) of removing any improvement construc-ted, reconstructed, refinished, altered ormaintained upon such project area in vio-lation of paragraph (a) of section 3.09,

(4) of restoring or otherwise reinstatingsuch project area as authorized by para-graph (a) of section 3.09, and

(5) of otherwise enforcing the restrictionsset forth or incorporated in this section orin section 3.09.

(b) No improvement, excavation or other workmay be made or done to or upon any project

area except upon strict compliance with, andwithin the restrictions and limitations of, theprovisions of section 3.09.

(c) Project area shall be used exclusively forresidential purposes, and no more than onefamily (including its servants and transientguests) shall occupy a unit; provided, however,that nothing in this paragraph (c) shall bedeemed to prevent

(1) any artist, artisan or craftsman from pur-suing his artistic calling within his unit ifsuch artist, artisan or craftsman

(aa) also uses such project area for resi-dential purposes,

(bb) is self-employed and has no employ-ees working in such project area, and

(cc) does not advertise or offer any prod-uct or work of art for sale to the publicupon or from such project area; or

(2) the leasing of any condominium fromtime to time by the Owner thereof, subject,however, to all the restrictions of The SeaRanch Restrictions.

(d) Each project area, and any and all improve-ment from time to time located thereon, shall bemaintained by the Owners of all the condomini-ums therein, in good condition and repair atsuch Owner’s sole cost and expense.

(e) No noxious or offensive activity shall be car-ried on upon any project area, nor shall any-thing be done or placed thereon which may beor become a nuisance, or cause unreasonableembarrassment, disturbance, or annoyance toother Owners in the enjoyment of their condo-miniums or their private or restricted privateareas, or in their enjoyment of common and re-stricted common areas. In determining whetherthere has been a violation of this paragraph,recognition must be given to the premise thatOwners, by virtue of their interest and participa-tion in The Sea Ranch, are entitled to the rea-sonable enjoyment of the natural benefits and

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surroundings of The Sea Ranch. Without limit-ing any of the foregoing, no exterior speakers,horns, whistles, bells, or other sound devices,except security devices used exclusively to pro-tect the security of the project area and im-provements located thereon, shall be placedor used upon any project area.

(f) No domestic animals or fowl other than areasonable number of generally recognizedhouse or yard pets shall be maintained on orwithin any project area.

(g) No tree or shrub shall be planted within anyproject area and be permitted to grow to aheight in excess of eight feet (8) feet unlesssuch tree or shrub is of an indigenous specie.

(h) No signs whatsoever, including but withoutlimitation, commercial, political and similarsigns, visible from neighboring property, shallbe erected or maintained upon any projectarea, except

(1) such signs as may be required by legalproceedings,

(2) project identifications signs of a com-bined total face area of two (2) square feetor less for each condominium,

(3) during the time of construction of anycondominium or other improvement, jobidentification signs having a maximum facearea of six (6) square feet per sign of thetype usually employed by contractors, sub-contractors and tradesmen, and

(4) for each condominium within a project,not more than one “for sale” or “for rent”sign having a maximum face area of three(3) square feet, provided that if at the timeof any such desired use the Association isproviding “for sale” and “for rent” signs forthe use of the Owners, the sign provided bythe Association and no other shall be used.

(i) All of the limitations and restrictions set forthin paragraphs (i) through (p), inclusive, of sec-tion 3.02 with respect to the use and enjoyment

of private area shall be applicable to the useand enjoyment of any project area by Ownersof condominiums within the project; provided,however, that all references therein to sec-tion 3.03 shall be deemed to be references tosection 3.09.

(j) Anything visible from neighboring propertystored, maintained or planted in, placed uponor removed from the ground surface of projectarea lying between the exterior of the perimeterwalls or foundations of any improvement con-structed within such project area and contigu-ous common area or restricted common areashall be deemed to be an improvement, andthe storing, maintaining, planting, placing or re-moval thereof shall be subject to the restrictionsand limitations of section 3.09.

Section 3.09. Project Area: Construction and Alterationof Improvements Excavations; etc.

The right of an Owner or Project Committeeof the project involved to construct, recon-struct, refinish, alter or maintain any im-provement upon, under or above any projectarea, or to make or create any excavationor fill thereon, or to make any change in thenatural or existing drainage thereof, or to in-stall any utility line (wire or conduit) thereonor thereover, or to destroy or remove anytree therefrom, shall be subject to all of thefollowing limitations and conditions of thissection:

(a) All of the limitations, restrictions and condi-tions set forth in paragraphs (a) through (k),inclusive, of section 3.03 with respect to privatearea shall apply to project area; provided, how-ever, that all references in said paragraphs tothe Owner shall include either the owner of theproject area or the Project Committee of theproject involved, whichever the case may be.

(b) The following standards and restrictions areapplicable to the construction, reconstruction,alteration and finishing of any and all improve-ments from time to time and existing upon proj-ect areas:

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(1) No reflective finishes (other than glass)shall be used on exterior surfaces (otherthan surfaces of hardware fixtures), includ-ing but without limitation, the exterior sur-faces of any of the following: roofs, all pro-jections above roofs, retaining walls, doors,trim, fences, pipes, equipment, mailboxesand newspaper tubes.

(2) The colors of all exterior surfaces shallbe shades of grey or brown of values be-tween black and white or shades of grey-greens or brown-greens (such as russet,citrine, and olive) of values between blackand medium, and the value range for eachproject area shall be further limited by theapplicable letter, if any, set forth on a subdi-vision map, as follows:

(aa) the value range for “A” project areasshall be white to medium;

(bb) the value range for “B” project areasshall be medium light to medium dark;and

(cc) the value range for “C” project areasshall be medium to dark.

(3) No roof shall be finished with built-uptar and gravel; provided, however, thatbuilt-up tar and dark gravel of valuesbetween brown and black may be used tofinish the flat roof of a carport if in the opin-ion of the Design Committee such carport isdesigned as an integral part of a highfence.

(4) Except for nails, bolts, other approvedconnecting devices and hardware fixturesused in connection therewith, all fences,screens and similar exterior structures shallbe constructed solely of wood; provided,however, that subject to the provisions ofsubparagraph (1) above, retaining wallsmay be constructed of other material.

(5) Each project shall contain parking spacewithin the project area for at least one

automobile for each condominium withinthe project by one of the following means:

(aa) a garage either attached to ordetached from the main structure of theproject;

(bb) a carport enclosed on not less thantwo sides, either attached directly to themain structure of the project or connect-ed by a roof or major fence; or

(cc) an exterior parking area enclosed onnot less than two sides by a five (5) footfence or planted berm.

(6) Each project shall contain a fencedservice yard enclosing all abovegroundtrash and garbage receptacles, exteriorincinerators, clotheslines and other main-tenance and service facilities.

(7) Each project shall contain a sewage dis-posal system approved by the Design Com-mittee and the public authority, if any, hav-ing jurisdiction. In no event shall sewagebe discharged directly or indirectly, into theocean, any creek, marsh, river, sound orbeach or shoreline or bank thereof.

(8) All fuel tanks, water tanks or towers, orsimilar storage facilities shall either be con-structed as an integral part of the mainstructure of the project or shall be installedor constructed underground.

(9) No water well or other independentwater supply works or facility shall be con-structed or maintained within any projectarea as long as there is available to suchproject area a source of water suppliedthrough one or more water distribution sys-tems owned and maintained by the Asso-ciation, a public utility corporation, a mutualwater company or any governmental entityor organization.

(10) There shall be no exterior lighting ofany sort either installed or maintained, thelight source of which is visible from neigh-boring property.

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(11) There shall be no antenna of any sorteither installed or maintained, which isvisible from neighboring property.

Section 3.10. Presumption of Compliance.

All of the following improvements, excava-tions, fills and other work shall, for all pur-poses of The Sea Ranch Restrictions, beconclusively presumed to be in compliancewith, and within the restrictions of, the pro-visions of this Article III:

(a) Those existing or maintained within or uponany property within The Sea Ranch at the timesuch property became a part of The SeaRanch;

(b) Those existing or maintained within or uponany private area or restricted private area at thetime such private area or restricted private areawas first conveyed to an Owner by Grantor;

(c) Those from time to time constructed, recon-structed, refinished, altered, installed or main-tained within or upon any property within TheSea Ranch by Grantor or pursuant to plans andspecifications which have been approved by theDesign Committee and which approval has notthereafter been revoked; and

(d) Those specified as complying with The SeaRanch Restrictions in the estoppel certificaterecorded by the Design Committee pursuant tosection 4.06.

Article IV. Design Committee.

Section 4.01. Design Committee: Organization; Power of Appointmentand Removal of Members.

There shall be a Design Committee,organized as follows:

(a) The Design Committee shall consist of three(3) members. At least one member shall be an

architect who shall be designated the architectmember. No other member shall be required tomeet any qualification for a membership on theDesign Committee.

(b) There shall also be three (3) alternate archi-tect members of the Design Committee, anyone of whom may be designated by the DesignCommittee to act in the place and stead of thearchitect member in the event of his absence ordisability.

Each of said persons shall hold his officeuntil such time as he has resigned or he hasbeen removed or his successor has beenappointed, as set forth herein.

(c) Except as provided in paragraph (d) below,the right from time to time to appoint and re-move all members and alternate architect mem-bers of the Design Committee shall be, and ishereby reserved to and vested solely inGrantor.

(d) The right from time to time to appoint andremove members and alternate architect mem-bers of the Design Committee shall be reservedto and vested in the Association as follows:

(1) From and after twenty (20) years fromthe date first above written, the Associationshall have the right to appoint and removeone member of the Design Committee, whoshall be the member, other than the mem-ber designated the architect member, who,as of the date such right may be first exer-cised, is the most recently appointedmember.

(2) From and after twenty-five (25) yearsfrom the date first above written, the Asso-ciation shall have the right to appoint andremove the two (2) members of the DesignCommittee not designated the architectmember.

(3) The Association shall have the right toappoint and remove all members and alter-nate architect members of the Design Com-mittee from and after thirty (30) years from

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the date first above written; provided, how-ever, that if Grantor fails to exercise itsrights under paragraph (c) above or recordsa declaration waiving such rights, the Asso-ciation shall thereupon and thereafter havethe right to appoint and remove all mem-bers and alternate architect members.

(e) Any member or alternate architect memberof the Design Committee may at any time re-sign from the Design Committee upon writtennotice delivered to Grantor or to the Associa-tion, whichever then has the right to appointand remove members.

Section 4.02. Design Committee: Duties.

It shall be the duty of the Design Committeeto consider and act upon such proposalsor plans from time to time submitted to itpursuant to sections 3.03, 3.07 and 3.09, toadopt Design Committee rules pursuant tosection 4.04, and to perform such otherduties from time to time delegated to it byThe Sea Ranch Restrictions.

Section 4.03. Design Committee: Meetings; Action; Compensation; Expenses.

The Design Committee shall meet from timeto time as necessary to properly perform itsduties hereunder. The vote or written con-sent of any two (2) members shall constitutean act by the Design Committee unless theunanimous decision of its members is oth-erwise required by The Sea Ranch Restric-tions; provided, however, approval of plans,drawings and specifications by the DesignCommittee pursuant to paragraph (d) of sec-tion 3.03 shall require the vote or writtenconsent of the architect member and atleast one other member. The Design Com-mittee shall keep and maintain a record ofall action from time to time taken by theDesign Committee at such meetings or oth-erwise. The architect member and the alter-nate architect members shall receive fromthe Association reasonable fees for profes-sional services rendered. Unless authorizedby the Association, the other members ofthe Design Committee shall not receive any

compensation for services rendered. Allmembers shall be entitled to reimbursementfor reasonable expenses incurred by themin connection with the performance of anyDesign Committee function.

Section 4.04. Design Committee Rules.

The Design Committee may, from time totime and in its sole discretion, adopt, amendand repeal by unanimous vote, rules andregulations, to be known as “Design Com-mittee Rules,” which, among other things,interpret or implement the provisions ofsections 3.03, 3.07 and 3.09 and which listspecies of ground covers, shrubs and trees.A copy of the Design Committee Rules, asthey may from time to time be adopted,amended, or repealed, certified by anymember of the Design Committee, shallbe recorded and shall thereupon have thesame force and effect as if they were setforth in and were a part of The Sea RanchRestrictions.

Section 4.05. Non-Waiver

The approval by the Design Committee ofany plans, drawings or specifications forany work done or proposed, or in connec-tion with any other matter requiring the ap-proval of the Design Committee under TheSea Ranch Restrictions, shall not be deem-ed to constitute a waiver of any right towithhold approval as to any similar plan,drawing, specification or matter wheneversubsequently or additionally submitted forapproval.

Section 4.06. Estoppel Certificate.

When thirty (30) days after written demandtherefor is delivered to the Design Commit-tee by any Owner, and upon payment there-with to the Association of a reasonable feefrom time to time to be fixed by the Associa-tion, the Design Committee shall record anestoppel certificate executed by any two ofits members, certifying with respect to anylot of said Owner, that as of the date thereofeither (a) all improvements and other workmade or done upon or within said lot by theOwner, or otherwise, comply with The Sea

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Ranch Restrictions, or (b) such improve-ments and/or work do not so comply, inwhich event the certificate shall also:

(1) identify the noncomplying improve-ments and/or work and

(2) set forth with particularity the causeor causes for such noncompliance. Anypurchaser from the Owner, or mortgageeor other encumbrancer shall be entitledto rely on said certificate with respect tothe matters therein set forth, such mat-ters being conclusive as between theAssociation, Grantor and all Owners andsuch purchaser, mortgagee or otherencumbrancer.

Section 4.07. Liability.

Neither the Design Committee nor any mem-ber thereof shall be liable to the Associationor to any Owner or Project Committee forany damage, loss or prejudice suffered orclaimed on account of:

(a) the approval of any plans, drawings andspecifications, whether or not defective,

(b) the construction or performance of anywork, whether or not pursuant to approvedplans, drawings and specifications,

(c) the development, or manner of develop-ment of any property within The Sea Ranch,or

(d) the execution and filing of an estoppelcertificate pursuant to section 4.06, whetheror not the facts therein are correct; provid-ed, however, that such member has, withthe actual knowledge possessed by him,acted in good faith.

Without in any way limiting the generality ofthe foregoing, the Design Committee, or anymember thereof, may, but is not required to,consult with or hear the Association or anyOwner with respect to any plans, drawingsor specifications, or any other proposal sub-mitted to the Design Committee.

Article V. The Sea Ranch Association.

Section 5.01. Organization.

(a) The Association is a nonprofit membershipcorporation charged with the duties and em-powered with the rights set forth herein. It wascreated by the Articles and its affairs shall begoverned by the Articles and Bylaws.

(b) In the event that the Association as a corpo-rate entity is dissolved, a nonprofit, unincorpo-rated association shall forthwith and without fur-ther action or notice be formed and succeedto all rights and obligations of the Associationhereunder. Said unincorporated associationshall be known as Del Mar Ranch Associationand its affairs shall be governed by the laws ofthe State of California and, to the extent notinconsistent therewith, by the Articles and By-laws, respectively, as if they were created forthe purpose of governing the affairs of an unin-corporated association.

Section 5.02. Membership.

(a) Each Owner, by virtue of being an Ownerand for so long as he is an Owner, shall be amember of the Association, or, in the event ofits dissolution, a member of the unincorporatedassociation succeeding to the Association, asprovided for in paragraph (b) of section 5.01.

(b) The rights, duties, privileges and obligationsof an Owner as a member of the Association orits succeeding unincorporated association shallbe those set forth in, and shall be exercisedand imposed in accordance with, the provisionsof The Sea Ranch Restrictions, the Articles andBylaws.

(c) In the event of the dissolution of the Asso-ciation and the formation of an unincorporatedassociation, as provided for in paragraph (b) ofsection 5.01, each member of the unincorporat-ed association shall have an equal, underlyingbeneficial interest in all of the Association’sproperty transferred to or for the account orbenefit of said unincorporated association in

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direct proportion to the number of lots ownedby such member; provided, however, that thereshall be no judicial partition of such property, orany part thereof, nor shall any such member orother person acquiring any interest in said prop-erty, or any part thereof, seek any such judicialpartition.

Section 5.03. Voting Rights.

Each Owner shall be entitled to one vote foreach lot owned by such Owner on all mat-ters properly submitted for vote to the mem-bership of the Association; provided, how-ever, that every Owner entitled to vote atany election of the members of the Boardmay cumulate his votes and give any one ormore candidates a number of votes equal tothe number of lots owned by the Owner mul-tiplied by the number of directors to be elec-ted. The right to vote may not be severed orseparated from any lot, and any sale, trans-fer or conveyance of any lot to a new Ownershall operate to transfer the appurtenantvote without the requirement of any expressreference thereto.

Section 5.04. Duties and Obligations of the Association.

The Association shall have the obligationsand duties, subject to The Sea Ranch Re-strictions, to do and perform each and everyof the following for the benefit of the Own-ers and for the maintenance and improve-ment of The Sea Ranch:

(a) The Association shall accept as part of TheSea Ranch, all property annexed to The SeaRanch pursuant to section 2.02 and shall ac-cept all Owners as members of the Association.

(b) The Association shall accept title to allcommon area and restricted common areafrom time to time conveyed to it pursuant tosection 9.05.

(c) Notwithstanding anything to the contrarycontained in paragraph (b) of section 5.01,immediately prior to any dissolution of the Asso-ciation as a corporate entity the Association

shall convey all real property vested in it to TitleInsurance and Trust Company or to its succes-sor, or to any other independent corporate trus-tee, to hold such real property in trust for thebenefit of the unincorporated association form-ed pursuant to said paragraph (b) and for thebenefit of the Owners.

(d) The Association shall maintain, or providefor the maintenance of, common area, restrict-ed common area, recreational facilities andrestricted private area and all improvements ofwhatever kind and for whatever purpose fromtime to time located thereon in good order andrepair; provided, however, that notwithstandingthe foregoing, the Association shall have noobligation to maintain in good order and repairany improvement constructed upon commonarea, restricted common area, or restricted pri-vate area by any Owner or Project Committeepursuant to section 3.07. Roads shall be main-tained in a condition of repair at least equal tothat of comparable roads of the County ofSonoma.

(e) The Association shall enter upon and main-tain, or provide for the maintenance of, anyprivate area or project area which is not main-tained by the Owner or Project Committeethereof in accordance with the requirementsof sections 3.02 and 3.08, respectively.

(f) To the extent not assessed to or paid by theOwners, the Association shall pay all real prop-erty taxes and assessments levied upon anyportion of common area or restricted commonarea or upon any recreational facility.

(g) Unless provided by a municipal, countyor other governmental body and unless thecost thereof is assessed, directly or indirectly,against the Owners by such body, the Associa-tion shall contract for, employ, or otherwise pro-vide police and refuse disposal services.

(h) The Association shall obtain and maintain inforce the following policies of insurance:

(1) fire and extended coverage insuranceon all improvements owned by the

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Association and from time to time locatedupon or within any common area, restrictedcommon area, or recreational facility, theamount of such insurance to be not lessthan ninety percent (90%) of the aggregatefull insurable value, meaning actual re-placement value (exclusive of the cost ofexcavations, foundations and footings), ofsuch improvements as from time to timedetermined by the Association;

(2) bodily injury liability insurance with limitsof not less than Two Hundred ThousandDollars ($200,000) per person and OneMillion Dollars ($1,000,000) per occurrenceinsuring against any and all liability withrespect to The Sea Ranch or any portionthereof, or arising out of the maintenance oruse thereof; and

(3) property damage liability insurance witha deductible of not more than One Thou-sand Five Hundred Dollars ($1,500) and alimit of not less than Five Hundred Thou-sand Dollars ($500,000) per accident.

The policy or policies of insurance referredto in subparagraphs (2) and (3) above shallname as insureds (aa) the Association, theBoard, the Design Committee, and their rep-resentatives, members and employees, and(bb) with respect to any liability arising outof the maintenance and use of commonarea, restricted common area or any recre-ational facility, the Owners. Such policy orpolicies shall protect each of the insuredsas if each were separately insured underseparate policies; provided, however, thatsuch policy or policies shall not require theinsured or insurers to pay any amount inexcess of the maximum limits stated there-in. Each and every policy of insuranceobtained by the Association, whether or notrequired to be obtained pursuant to the pro-visions of The Sea Ranch Restrictions, shallexpressly waive any and all rights of subro-gation against Grantor, its representativesand employees, and any Owner.

(i) The Association shall accept and act upon

applications submitted to it for the developmentof public and private recreational facilities.

(j) The Association shall from time to timemake, establish, promulgate, amend and re-peal The Sea Ranch Rules, as provided for insection 5.06.

(k) To the extent provided for in section 4.01,the Association shall exercise its rights to ap-point and remove members of the Design Com-mittee to insure that at all reasonable timesthere is available a duly constituted and ap-pointed Design Committee.

(l) The Association shall take such action,whether or not expressly authorized by TheSea Ranch Restrictions, as may reasonablybe necessary to enforce the restrictions, limita-tions, covenants, and conditions of The SeaRanch Restrictions, The Sea Ranch Rules andthe Design Committee Rules.

Section 5.05. Powers and Authority of the Association.

The Association shall have all of the powersset forth in the Articles, together with itsgeneral powers as a nonprofit corporation,subject only to the limitations upon the ex-ercise of such powers as are expressly setforth in the Articles, the Bylaws and in TheSea Ranch Restrictions, to do any and alllawful things which may be authorized, re-quired or permitted to be done by the As-sociation under and by virtue of The SeaRanch Restrictions and to do and performany and all acts which may be necessaryor proper for or incidental to the exercise ofany of the express powers of the Associa-tion or for the peace, health, comfort, safetyand/or general welfare of the Owners andGuests of The Sea Ranch. Without in anyway limiting the generality of the foregoing:

(a) The Association shall have the power andauthority at any time, and from time to time,and without liability to any Owner or ProjectCommittee, to enter upon any private area orproject area for the purpose of enforcing anyand all of the provisions of sections 3.02, 3.03,

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3.08 and 3.09, or for the purpose of maintainingand repairing any such area if for any reasonwhatsoever the Owner thereof or the ProjectCommittee of the project involved fails to main-tain and repair such area as required by para-graph (d) of section 3.02 and paragraph (d) ofsection 3.08, respectively. The Association shallalso have the power and authority from time totime, in its own name, on its own behalf or onbehalf of any Owner or Owners who consentthereto, to commence and maintain actionsand suits to restrain and enjoin any breach orthreatened breach of The Sea Ranch Restric-tions and to enforce, by mandatory injunction orotherwise, all of the provisions The Sea RanchRestrictions.

(b) In fulfilling any of its obligations or dutiesunder The Sea Ranch Restrictions, including,without limitations, its obligations or duties forthe maintenance, repair, operation or adminis-tration of common area, restricted commonarea, recreational facilities, restricted privatearea and, to the extent necessitated by thefailure of the Owners thereof, private areaand project area, the Association shall havethe power and authority:

(1) to contract and pay for, or otherwiseprovide for, the maintenance, restorationand repair of all improvements of whateverkind and for whatever purpose from time totime located upon common area, restrictedcommon area or within any recreationalfacility;

(2) to obtain, maintain and pay for such in-surance policies or bonds, whether or notrequired by section 5.04, as the Associationshall deem to be appropriate for the protec-tion or benefit of The Sea Ranch, the As-sociation, the members of the Board, themembers of the Design Committee, Ownersor Guests, including, but without limitation,war risk insurance, boiler insurance, work-ers’ compensation insurance, maliciousmischief insurance, automobile nonowner-ship insurance, and performance and fideli-ty bonds;

(3) to contract and pay for, or otherwiseprovide for, such utility services, including,but without limitation, water, sewer, gar-bage, electrical, telephone and gas servic-es, as may from time to time be required;

(4) to contract and pay for, or otherwiseprovide for, the services of architects, en-gineers, attorneys and certified public ac-countants and such other professional andnonprofessional services as the Associationdeems necessary;

(5) to contract and pay for, or otherwiseprovide for, fire, police and such other pro-tection services as the Association shallfrom time to time deem necessary for thebenefit of The Sea Ranch, any property lo-cated within The Sea Ranch, Owners andGuests;

(6) to contract and pay for, or otherwiseprovide for, such materials, supplies, furni-ture, equipment and labor as and to theextent the Association deems necessary;and

(7) to pay and to discharge any and all liensfrom time to time placed or imposed uponany common area, restricted common areaor recreational facility on account of anywork done or performed by the Associationin the fulfillment of any of its obligations andduties of maintenance, repair, operation oradministration.

(c) In fulfilling any of its obligations, or in exer-cising any of its rights, to construct improve-ments or other work upon any common area,restricted common area or restricted privatearea, or in connection with the development ofany recreational facility pursuant to Article VII,the Association shall have the right, power andauthority:

(1) to contract and pay for, or otherwiseprovide for, the construction of such im-provements or other work upon such termsand conditions as the Association shalldeem appropriate;

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(2) to obtain, maintain and pay for suchinsurance policies or bonds, in addition tothose obtained by the Association pursuantto subparagraph (2) of paragraph (b)above, as the Association may deemappropriate for the protection or benefit ofthe Association, the members of the Board,the members of the Design Committee,Owners and Guests, including, but withoutlimitation, builder’s risk insurance, addition-al comprehensive liability insurance, work-ers’ compensation insurance and perform-ance and fidelity bonds;

(3) to contract and pay for, or otherwiseprovide for, the services of architects, en-gineers, attorneys and certified public ac-countants and other professional and non-professional services; and

(4) to pay and discharge any and all liensarising out of the construction of any suchimprovement.

(d) The Association shall have the power andauthority from time to time to grant and conveyto any third party such easements, rights ofway, parcels or strips of land, in, on, over orunder any common area, restricted commonarea or recreational facility, for the purpose ofconstructing, erecting, operating and maintain-ing thereon, therein and thereunder,

(1) public roads, streets, walks, driveways,parkways, and park areas,

(2) poles, wires, and conduits for the trans-mission of electricity for lighting, heating,power, telephone, television and other pur-poses and for the necessary attachments inconnection therewith, and

(3) public and private sewers, storm waterdrains, land drains and pipe, water sys-tems, sprinkling systems, water, heatingand gas lines or pipes and any and allequipment in connection with the foregoing.

(e) The Association may, from time to time, em-ploy the services of a manager to manage the

affairs of the Association and, to the extent notinconsistent with the laws of the State of Cali-fornia and upon such conditions as are other-wise deemed advisable by the Association,the Association may delegate to the managerany of its powers under The Sea RanchRestrictions.

(f) The Association may, from time to time andupon such terms and conditions as it may deemappropriate, agree with the Project Committeeof any project to manage the affairs of suchProject Committee.

(g) The Association shall have the right fromtime to time to pay, compromise or contest anyand all taxes and assessments levied againstall or any part of any common area, restrictedcommon area or recreational facility or uponany personal property belonging to the Asso-ciation; provided, however, that prior to the saleor other disposition of any property to satisfythe payment of any such tax or assessment,the Association shall pay and discharge thelien imposed with respect to such property.

Section 5.06. The Sea Ranch Rules.

(a) The Association may, from time to timeand subject to the provisions of The Sea RanchRestrictions, adopt, amend, and repeal rulesand regulations, to be known as “The SeaRanch Rules,” governing, among other things,

(1) the use of common area, restrictedcommon area, and recreational facilities;

(2) the use of roads;

(3) the collection and disposal of refuse;

(4) the burning of open fires; and

5) the maintenance of animals within TheSea Ranch.

(b) With respect to subparagraph (a) (1) above,The Sea Ranch Rules may, without limitationand to the extent deemed necessary by theAssociation in order to preserve the benefits ofThe Sea Ranch for all Owners, their families,

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invitees, licensees and lessees, and for Guests,restrict and/or govern the use of common area,restricted common area and recreational facili-ties by any Guest, by any Owner, by the familyof such Owner, or by any invitee, licensee orlessee of such Owner; provided, however, thatwith respect to use of common area and publicrecreational facilities, The Sea Ranch Rulesmay not discriminate between Guests, Owners,and the families and lessees of Owners.

(c) With respect to subparagraph (a) (2) above,The Sea Ranch Rules may, without limitation,provide for:

(1) parking restrictions and limitations;

(2) maximum speeds for vehicular travel;

(3) the time or times when commercial ve-hicles may be permitted to use the roads;and

(4) the type or types of vehicles other thanconventionally equipped passenger auto-mobiles which may be permitted to use theroads.

(d) A copy of The Sea Ranch Rules, as theymay from time to time be adopted, amended orrepealed, certified by the Secretary or any As-sistant Secretary of the Association, shall berecorded and duplicate copies thereof shall bedelivered to each Owner and each participatingfacility. Upon such recordation and delivery TheSea Ranch Rules shall have the same forceand effect as if they were set forth in and werea part of The Sea Ranch Restrictions.

Section 5.07. Liability of Members of Board.

No member of the Board shall be personallyliable to any Owner, Guest, Project Commit-tee, participating facility, or to any otherperson, including Grantor, for any error oromission of the Association, its representa-tives and employees, the Design Committeeor the manager; provided, however, thatsuch member has, with the actual knowl-edge possessed by him, acted in good faith.

Section 5.08. Exclusive Powers of the Association.

The Association, through the Board and itsduly authorized representatives, shall havethe exclusive right to exercise the powersand authority referred to in paragraphs (b)through (g), inclusive, of section 5.05.

Article VI. Funds and Assessments.

Section 6.01. Operating Fund.

There shall be an operating fund, into whichthe Association shall deposit all moniespaid to it as:

(a) maintenance assessments;

(b) recreational assessments;

(c) special assessments;

(d) use fees paid by users of public recreationalfacilities;

(e) use fees paid by participating facilities;

(f) management fees paid by Project Committeeunder agreements entered into pursuant to par-agraph (f) of section 5.05;

(g) miscellaneous fees; and

(h) income and profits attributable to the operat-ing fund;

and from which the Association shall makedisbursements in performing the functionsfor which the foregoing assessments arelevied.

Section 6.02. Maintenance Assessment.

(a) Within thirty (30) days prior to the com-mencement of each fiscal year the Associationshall estimate the costs and expenses to beincurred by the Association during such fiscalyear in performing its functions under Article V(including a reasonable provision for contingen-cies and replacements), and shall subtract fromsuch estimate:

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(1) the estimate of costs and expensesreferred to in section 6.03;

(2) an amount equal to the anticipated bal-ance (exclusive of any reserves for contin-gencies and replacements) in the operatingfund at the start of such fiscal year which isattributable to maintenance assessments;and

(3) the estimated receipts for all use fees tobe collected from users of public recreation-al facilities and from participating facilitiesduring the next fiscal year.

(b) The sum or net estimate determined pursu-ant to paragraph (a) above shall be assessedto the Owners as a maintenance assessmentin the following manner:

(1) an equal amount, to be fixed by the As-sociation but not more than three hundredsixty dollars ($360) for any fiscal year, shallbe assessed to the Owner of each lot inThe Sea Ranch; provided that said maxi-mum amount may be adjusted upward indirect proportion to any increase in theCost of Living Index measured from Jan-uary 1965, to the January immediatelypreceding the assessment, and

(2) if the assessments made pursuant tosubparagraph (1) above are maximumassessments and if the aggregate of saidassessments does not cover said sum ornet estimate determined pursuant to para-graph (a) above, then the balance of saidsum or net estimate shall be assessed tothe Owner of each lot in The Sea Ranch inaccordance with the proportion that the as-sessed value of such lot bears to the as-sessed value of all lots in The Sea Ranchat the time such assessment is made.

(c) If at any time and from time to time duringany fiscal year the maintenance assessmentproves inadequate for any reason, includingnonpayment of any Owner’s share thereof,the Association may levy a further assessmentin the amount of such actual or estimated

inadequacy, which shall be assessed to theOwners in the manner set forth in paragraph (b)above.

(d) Maintenance assessments shall be due andpayable by the Owners to the Association inequal monthly installments, on or before thefirst day of each month during the fiscal year,or in such other manner as the Associationshall designate.

(e) Any provision in this section 6.02 to the con-trary notwithstanding, the aggregate amount ofall maintenance assessments from time to timelevied during any fiscal year shall not, withoutfirst complying with the provisions of paragraph(f) below, exceed the sum of the following:

(1) the aggregate cost and expense incur-red or to be incurred by the Associationduring such fiscal year in performing itsfunctions under paragraphs (f), (g) and (h)of section 5.04 and paragraph (b) (5) ofsection 5.05;

2) three hundred sixty dollars ($360) (assuch figure may be adjusted upward indirect proportion to any increase in theCost of Living Index measured from Janu-ary 1965, to the January immediately pre-ceding the start of the fiscal year involved)multiplied by the number of lots within TheSea Ranch at the time such assessment ismade;

(3) Five percent (5%) of the aggregateassessed value of all lots within The SeaRanch at the time such assessment ismade; and

(4) the aggregate amount of all additionalmaintenance assessments from time totime theretofore approved pursuant to theprovisions of paragraph (f) and whichapproval has not by its terms expired.

(f) No maintenance assessment which exceedsthe sum determined pursuant to paragraph (e)above shall be levied unless the Associationhas approved such assessment by the

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unanimous action of the Board or by the vote orwritten consent of Owners owning not less thanfifty-one percent (51%) of the lots then withinThe Sea Ranch. Such approval shall set forththe dollar amount by which the maintenanceassessment may exceed the sum determinedpursuant to paragraph (e) above, and may byits terms be limited to a specified fiscal year oryears; provided, however, that if such approvalrelates to the maintenance of one or more des-ignated public recreational facilities, then suchapproval shall be deemed to have been givenwith respect to any and all maintenance as-sessments levied thereafter with respect tosuch public recreational facilities which do notexceed the dollar amount set forth in suchapproval.

Section 6.03. Recreational Assessment.

(a) Within thirty (30) days prior to the com-mencement of each fiscal year the Associationshall estimate the costs and expenses to beincurred by the Association during such fiscalyear in performing its functions with respect toeach private recreational facility developed pur-suant to Article VII, and shall subtract from eachsuch estimate the amount, if any, of the antici-pated balance in the operating fund at the startof the next fiscal year attributable to recreation-al assessments for each such private recre-ational facility.

(b) The sum or net estimate determined pur-suant to paragraph (a) above for each privaterecreational facility shall be assessed equally tothe Owners of the lots then listed in the Devel-opment Assessment Certificate recorded withrespect to each such private recreational facilityas a recreational assessment.

(c) If at any time and from time to time duringthe fiscal year any recreational assessmentproves, or appears likely to prove, inadequatefor any reason, including nonpayment of anyOwner’s share thereof, the Association maylevy a further assessment in the amount ofsuch actual or estimated inadequacy, whichshall be assessed to each Owner in the mannerand to the extent provided for in paragraph (b)above.

(d) Recreational assessments shall be due andpayable by Owners to the Association in equalmonthly installments, on or before the firstday of each month during the fiscal year, orin such other manner as the Association shalldesignate.

Section 6.04. Special Assessment.

The Association shall levy a special assess-ment against any Owner as a direct result ofwhose acts, or failure or refusal to act orotherwise to comply with The Sea RanchRestrictions, The Sea Ranch Rules or theDesign Committee Rules, monies were ex-pended from the operating fund by the As-sociation in performing its functions underThe Sea Ranch Restrictions. Such assess-ment shall be in the amount so expended,and shall be due and payable to theAssociation when levied.

Section 6.05. Development Fund.

There shall be a development fund, intowhich the Association shall deposit allmonies paid to it as:

(a) Public facility development assessments;

(b) Private facility development assessments;and

(c) Income and profits attributable to the devel-opment fund;

and from which the Association shall makedisbursements in performing the functionsfor which the foregoing assessments arelevied.

Section 6.06. Public Facility Development Assessment.

(a) To provide for the development of publicrecreational facilities, the Association may, sub-ject to the provisions of paragraph (b) below,from time to time assess to the Owners as apublic facility development assessment suchamount or amounts as the Association maydetermine to be appropriate in the followingmanner:

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(1) an equal amount, to be fixed by theAssociation but not more than thirty-sixdollars ($36) for any fiscal year shall beassessed to the Owner of each lot in TheSea Ranch; provided that said maximumamount may be adjusted upward in directproportion to any increase in the Cost ofLiving Index measured from January 1965,to the January immediately preceding theassessment; and

(2) if the assessments made pursuant tosubparagraph (1) above are maximum as-sessments, an amount shall be assessedto the Owner of each lot in The Sea Ranchin accordance with the proportion that theassessed value of such lot bears to the as-sessed value of all lots in The Sea Ranchat the time such assessment is made.

(b) No public facility development assessmentpursuant to subparagraph (2) of paragraph (a)above shall be levied unless the Owners of lotsequal to at least seventy-five percent (75%) ofthe assessed value of all lots in The Sea Ranchhave approved such assessment by filing awritten consent thereto with the Association orby voting in favor thereof at a meeting of theAssociation. No such assessment shall bemade in an aggregate amount greater than theamount approved pursuant to this paragraph;provided, however, that approval hereunder ofany assessment for the development of a givenpublic recreational facility pursuant to section7.02 shall also constitute approval of any sub-sequent public facility development assessmentwith respect to such facility.

(c) Public facility development assessmentsshall be due and payable by the Owners to theAssociation in such installments and duringsuch period or periods as the Association shalldesignate.

Section 6.07. Private Facility Development Assessment.

Upon the recordation of a DevelopmentAssessment Certificate pursuant to section7.03, the Association shall levy a privatefacility development assessment prorated

equally among all of the Owners of the lotsthen listed in such Development Assess-ment Certificate, in the aggregate amountof the estimated total cost of the private rec-reational facility referred to therein. Such as-sessment shall be due and payable by suchOwners to the Association in such install-ments and during such period or periodsas the Association shall designate.

Section 6.08. Default in Payment of Assessments.

(a) Each assessment under this Article VI shallbe a separate, distinct and personal debt andobligation of the Owner against whom it is as-sessed. If the Owner does not pay such as-sessment or any installment thereof when due,the Owner shall be deemed to be in default,and the amount of the assessment not paid,together with the amount of any subsequentdefault, plus interest at seven percent (7%),and costs, including reasonable attorneys’ fees,shall become a lien upon the lot or lots of suchOwner upon recordation by the Association of anotice of default. Such lien shall be subject andsubordinate to the lien of any mortgage uponthe lot or lots of such Owner which is made ingood faith and for value and is recorded prior tothe recordation of such notice of default. TheAssociation shall record such notice of defaultwithin sixty (60) days following the occurrenceof such default, and shall commence proceed-ings to enforce such lien within six (6) monthsfollowing such recordation. The foregoing reme-dy shall be in addition to any other remediesprovided by law for the enforcement of suchassessment obligation.

(b) The Association shall execute and acknowl-edge a certificate stating the indebtednesssecured by the lien upon any lot or lots, andsuch certificate shall be conclusive upon theAssociation and the Owners, in favor of all per-sons who rely thereon in good faith, as to theamount of such indebtedness on the date of thecertificate. The Association shall furnish a copyof such certificate to any Owner upon request,at a reasonable fee.

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Article VII. Development and Useof Recreational Facilities.

Section 7.01. Introduction.

In order to promote the beneficial recrea-tional use of common and restricted com-mon area in a manner which fosters the di-verse recreational interests of Owners orgroups of Owners and which is compatiblewith the rights of other Owners in their en-joyment of the environment of The SeaRanch, provision is hereby made in thisArticle for the development by the Associa-tion of public recreational facilities, whichshall be for the use and enjoyment of anyOwner or Guest, and of private recreationalfacilities, which shall be for the use and en-joyment of those Owners who are permittedusers pursuant to section 7.04.

Section 7.02. Public Recreational Facilities; Procedure for Development.

(a) One or more Owners may from time to timepetition the Association for the development ofa public recreational facility on any portion ofcommon area reserved on a subdivision mapfor such development, or on any portion of re-stricted common area reserved on a subdivisionmap for such development and contiguous tocommon area. Such petition shall be in suchform and shall contain such information as theAssociation may require, including, amongother things, the following:

(1) the names and addresses of the peti-tioning Owners;

2) the location of the common or restrictedcommon area; and

(3) the type of public recreational facilitywhich the petitioning Owners wish to havedeveloped.

The Association may from time to time andon its own motion move for the develop-ment of a public recreational facility, in

which case such motion shall be treatedas if it were a petition submitted by one ormore Owners.

(b) The Association shall tentatively approve thepetition if it finds that the proposed public recre-ational facility is financially feasible and is com-patible with The Sea Ranch. Among the factorswhich the Association shall consider in makingsuch finding are the following:

(1) the suitability of the proposed use of thelocation;

(2) the suitability of the proposed use asopposed to other possible recreational useson such location;

(3) the suitability of the public character ofthe proposed recreational facility as op-posed to a private character;

(4) the anticipated volume of use; and

(5) the estimated cost of development andoperation.

(c) After tentative approval of the petition theAssociation shall prepare, or cause to be pre-pared, and submit to the Design Committeepursuant to paragraph (b) of section 3.07, twosets of plans and specifications for the pro-posed recreational facility. Upon the request ofthe Design Committee, such plans and specifi-cations shall be prepared by an architect and/orengineer.

(d) If the Design Committee approves suchplans and specifications, the Association shallobtain firm bids on the total cost of constructingand otherwise developing the proposed publicrecreational facility, and the lowest acceptablebid or bids shall be deemed the estimated totalcost of development of such facility.

(e) If the Design Committee rejects such plansand specifications for failure of the same to sat-isfy the conditions set forth in clause (dd) ofsubparagraph (1) or in subparagraph (3), bothof paragraph (b) of section 3.07, the Associa-

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tion shall reconsider the petition in the light ofthe reasons given for such rejection by the De-sign Committee. If upon such reconsiderationthe Association reaffirms the finding made pur-suant to paragraph (b) above, such plans andspecifications shall be deemed approved by theDesign Committee.

(f) The Association shall give final approval tothe petition if it finds on the basis of the plansand specifications approved by the DesignCommittee and the estimated total cost ofdevelopment that the proposed public recre-ational facility is financially feasible and is com-patible with The Sea Ranch. In its final approvalthe Association may impose such restrictionsupon the use and operation of the facility,including reasonable use fees to be chargedOwners and Guests for the use thereof, as itmay deem advisable to assure the satisfactoryfunctioning and financial stability of the facility,or to protect other Owners in their use andenjoyment of The Sea Ranch.

(g) After its final approval of the petition, theAssociation shall allocate for the developmentof the proposed public recreational facility anamount equal to the total estimated cost of de-velopment of such facility (including a reason-able provision for contingencies) from the por-tion, if any, of the development fund attributableto public facility development assessmentslevied for the development of such facility. Ifno such assessments have been made, theAssociation shall allocate such amount fromthe unallocated balance of such fund.

(h) After allocation of monies pursuant to para-graph (g) above, the Association, at such timeand on such terms and conditions as it maydeem appropriate but not exceeding the esti-mate total cost of development determined pur-suant to paragraph (d) above, shall commenceor contract for the development and construc-tion of the public recreational facility in accor-dance with the plans and specifications ap-proved by the Design Committee.

(i) If the amount allocated from the develop-ment fund pursuant to paragraph (g) above

from time to time proves or appears to be inad-equate to cover the actual cost of developmentof the public recreational facility, the Associationshall at its option and from time to time:

(1) levy an additional public facility develop-ment assessment pursuant to section 6.06in an amount sufficient to cover such actualor estimated inadequacy and allocate suchamount to the development of such facility;or

2) allocate an amount sufficient to coversuch actual or estimated inadequacy fromthe unallocated balance of the developmentfund to the development of such facility.

(j) Any monies allocated to the development ofa given recreational facility pursuant to para-graph (g) or (i) above which are not expendedfor such purpose shall, upon completion of thedevelopment of such facility, become part of theunallocated balance of the development fund.

(k) If for any reason the Association does notgive final approval to the petition pursuant toparagraph (f) above, all expenses incurred bythe Association in obtaining plans and specifica-tions pursuant to paragraph (c) above shall bepaid out of the unallocated balance of the de-velopment fund.

(l) Any improvement constructed or to be con-structed by Grantor on any portion of commonarea reserved on a subdivision map for devel-opment as a public recreational facility or onany portion of restricted common area reservedon a subdivision map for such development andcontiguous to common area shall be deemed tobe a public recreational facility developed bythe Association upon completion of such im-provement by Grantor.

Section 7.03. Private Recreational Facilities.

(a) One or more Owners may from time to timepetition the Association for the development ofa private recreational facility on any portion ofcommon area reserved on a subdivision mapfor such development, and one or more Ownersof condominiums within one or more projects

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may petition the Association for the develop-ment of a private recreational facility on anyportion of restricted common area which is con-tiguous to such project or projects and which isreserved on a subdivision map for such devel-opment. Such petition shall be in such form andshall contain such information as the Associa-tion may require, including among other thingsthe following:

(1) the names and addresses of the peti-tioning Owners;

(2) the location of the common or restrictedcommon area and the type of private recre-ational facility which the petitioning ownerswish to have developed; and

(3) the maximum private facility develop-ment and recreational assessments thepetitioning Owners are willing to pay.

(b) The Association shall tentatively approve thepetition if it finds that the proposed private rec-reational facility is financially feasible and iscompatible with The Sea Ranch. Among thefactors which the Association shall considerin making such finding are the following:

(1) the suitability of the proposed use tothe location;

(2) the suitability of the proposed use asopposed to other possible recreationaluses on such location;

(3) the suitability of the private characterof the proposed recreational facility as op-posed to a public character;

(4) the proximity of the lots of the petition-ing Owners to the location;

(5) the number of petitioning Owners;

(6) the anticipated volume of use;

(7) the estimated cost of development andoperation; and

(8) the ability of the petitioning Owners tobear private facility development and recre-ational assessments.

(c) After tentative approval of the petition theAssociation shall prepare, or cause to be pre-pared, and submit to the Design Committeepursuant to paragraph (b) of section 3.07, twosets of plans and specifications for the pro-posed private recreational facility. Upon therequest of the Design Committee, such plansand specifications shall be prepared by anarchitect and/or engineer.

(d) If the Design Committee approves suchplans and specifications, the Association shallobtain firm bids on the total cost of constructingand otherwise developing the proposed privaterecreational facility, and the lowest acceptablebid or bids shall be deemed the estimated totalcost of development of such facility.

(e) If the Design Committee rejects such plansand specifications for failure of the same to sat-isfy the conditions set forth in clause (dd) ofsubparagraph (1) or in subparagraph (3), bothof paragraph (b) of section 3.07, the Associa-tion shall reconsider the petition in the light ofthe reasons given for such rejection by the De-sign Committee. If upon such reconsiderationthe Association reaffirms the finding made pur-suant to paragraph (b) above, such plans andspecifications shall be deemed approved by theDesign Committee.

(f) The Association shall give final approval tothe petition if it finds on the basis of the plansand specifications approved by the DesignCommittee and the estimated total cost of de-velopment that the proposed private recreation-al facility is financially feasible and is compati-ble with The Sea Ranch. In its final approvalthe Association may impose such restrictionsupon the use and operation of the facility as itmay deem advisable to assure the satisfactoryfunctioning and financial stability of the facility,or to protect other Owners in their use andenjoyment of The Sea Ranch.

(g) If within three (3) months after the date of

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final approval of the petition by the Associationpursuant to paragraph (f) above, a number ofOwners at least equal to the number of petition-ing Owners shall file with the Association theirconsent to the development of the private rec-reational facility in accordance with the termsand conditions of said final approval, the devel-opment of the proposed private recreationalfacility shall be deemed approved. Each suchwritten consent shall, among other things, iden-tify the Owner’s lot or lots to be benefited bythe development and use of such facility. EachOwner by filing such consent shall be deemedto have consented to any and all private facilitydevelopment assessments and recreationalassessments from time to time levied in con-nection with such facility pursuant to Article VI.

(h) After the development of the proposed pri-vate recreational facility has been approved inthe manner set forth in paragraph (g) above,the Association shall record a DevelopmentAssessment Certificate identifying each lot tobe benefited by the development and use ofsuch facility and certifying that the Owner ofeach such lot has consented to any and all pri-vate facility development assessments andrecreational assessments to be levied in con-nection with such facility pursuant to Article VI.

(i) After the levy of the private facility develop-ment assessment pursuant to section 6.07, andat such time and upon such terms and condi-tions as the Association may deem to be appro-priate, but not exceeding the estimated totalcost of development determined pursuant toparagraph (d) above, the Association shall com-mence or contract for the development andconstruction of the private recreational facility inaccordance with the plans and specificationsapproved by the Design Committee.

(j) If for any reason the Association does notgive final approval to the petition pursuant toparagraph (f) above within six (6) months afterthe petition is filed, or if the development of theproposed recreational facility is not approvedpursuant to paragraph (g) above, then in eitherevent the petitioning Owners shall reimbursethe Association for all expenses incurred by the

Association in obtaining plans and specifica-tions pursuant to paragraph (c) above.

Section 7.04. Users of Private Recreational Facilities.

(a) Any Owner who has filed a consent pursu-ant to paragraph (g) of section 7.03 with re-spect to any private recreational facility and isnot in default in the payment of any privatefacility development assessment or any recre-ational assessment levied with respect theretoshall be permitted to use such facility.

(b) The right to use any private recreationalfacility may from time to time be extended toone or more Owners in addition to those re-ferred to in paragraph (a) above if:

(1) seventy-five percent (75%) of the Own-ers then permitted to use a given privaterecreational facility shall file with the Asso-ciation a written petition recommending thatsuch additional Owners be permitted to usesuch facility,

(2) each such additional Owner shall filewith the Association a written consentwhich identifies his lot to be benefited bythe development and use of such facilityand consents to any and all private facilitydevelopment assessments and recreationalassessments that may from time to time belevied in connection with such facility pur-suant to Article VI, and

(3) the Association shall find that increasednumber of Owners permitted to use suchfacility is within the capacity of such facilityand does not adversely affect other Ownersin their use and enjoyment of The SeaRanch.

Upon satisfaction of the foregoing condi-tions, the Association shall record anamendment to the Development Assess-ment Certificate previously recorded withrespect to such facility, which amendmentshall identify the additional lot or lots to bebenefited by the development and use ofsuch facility. Upon recordation of such

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amendment such additional Owner shall bepermitted to use such facility so long as heis not in default in the payment of any pri-vate facility development assessment or anyrecreational assessment levied with respectthereto.

(c) The right to use any given private recre-ational facility shall be appurtenant to the lotidentified in the consent filed by each Ownerpursuant to paragraph (b) above or paragraph(g) of section 7.03, and any sale, transfer orconveyance of such lot shall operate to transferthe appurtenant right to use such facility withoutthe requirement of express reference thereto,and the transferee shall thereupon be permittedto use such facility; provided, however, that theright to use such facility may be severed fromsuch lot by the Owner thereof and transferredseparately if the proposed transferee of theright to use is an Owner and files with the As-sociation a written consent which identifies thetransferee Owner’s lot to be benefited by thedevelopment and use of such facility and con-sents to any and all private facility developmentassessments and recreational assessmentsthat may from time to time be levied in connec-tion with such facility pursuant to Article VI. Af-ter the filing of such consent, the Associationshall record an amendment to the DevelopmentAssessment Certificate previously recorded withrespect to such facility, which amendment shallidentify the lot to be benefited by the devel-opment and use of such facility and substitutesuch lot for the lot of the transfer or Owner.Upon recordation of such amendment, no fur-ther private facility development assessmentsor recreational assessments shall be leviedagainst such transfer or Owner with respect tosuch facility, and the transferee Owner shall bepermitted to use such facility so long as he isnot in default in the payment of any privatefacility development assessment or any recre-ational assessment levied with respect thereto.

Article VIII.Participating Facilities.

(Note: This Article VIII was repealed by voteof the membership and adopted by Resolu-tion No. 1 on July 9, 1988.)

Section 8.01. Introduction.

In order to permit persons other than Own-ers to partake in the many environmentaland recreational benefits offered by TheSea Ranch, provision is hereby made inthis Article for extending the privilege ofusing common area and public recreation-al facilities to Guests of participating facili-ties. In recognition of the rights and inter-ests of Owners in their enjoyment of TheSea Ranch, however, provision is also madeto insure that such use by Guests will notoverburden common area and public recre-ational facilities. Among the benefits thatmay accrue to The Sea Ranch as a result ofextending use privileges to Guests are:

(a) a more efficient use of common area andpublic recreational facilities and a broader basefor sharing the costs of operating and maintain-ing the same, and

(b) the attraction to the vicinity of The SeaRanch of the various services which participat-ing facilities may offer and of which Ownersmay avail themselves as members of the pub-lic but which, because of the nature or cost ofsuch services would not otherwise be availableto Owners.

Section 8.02. Agreement Between Grantoror Association and Participating Facility.

(a) Grantor, in its sole discretion, may from timeto time enter into an agreement with a partici-pating facility, the purpose of which is to extendto the Guests of such facility, subject to the pro-visions of this Article, the privilege of usingcommon area or portions thereof and publicrecreational facilities.

(b) Unless Grantor shall give its written consentfor the Association to enter into an agreement

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with a participating facility, the right to enter intoany such agreement shall be, and is herebyreserved to, and vested solely in Grantor untilsuch time as Grantor owns no property withinThe Sea Ranch or until Grantor has recorded adeclaration waiving its rights hereunder, which-ever is the first to occur. When Grantor waivesor no longer has the right to enter into any suchagreement, the right from time to time to enterinto any such agreement shall be vested solelyin the Association.

Section 8.03. Provisions of Agreement.

Any agreement entered into pursuant tosection 8.02 shall

(a) be for a term not to exceed the terminationof The Sea Ranch Restrictions as provided forin paragraph (b) of section 9.01;

(b) designate the common area and public rec-reational facilities which may be used by theGuests of the participating facility;

(c) subject to section 8.04, establish the alloca-tion of Guest cards to the participating facility;

(d) establish the amount of the use fee to bepaid by the participating facility to theAssociation for each fiscal year with respect toeach Guest card allocated to it; and

(e) subject to The Sea Ranch Restrictions, setforth such other terms and conditions as maybe appropriate concerning the use of commonarea and public recreational facilities by Guests.

Section 8.04. Limitation on Numberof Guests; Guest Cards; Allocation.

(a) The total number of Guests which may atany given time use common area and publicrecreational facilities shall not exceed twice thenumber of lots then within The Sea Ranch. Tothat end each participating facility shall issue toeach Guest a Guest card from its allocationthereof evidencing such Guest’s privilege to usethe common area and public recreational facili-ties designated in the agreement between suchparticipating facility and Grantor or the Associ-ation. The aggregate number of such Guest

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cards for all participating facilities shall not ex-ceed twice the total number of lots then withinThe Sea Ranch. For the purpose of this sectionthe use of roads for access to a participatingfacility shall not be deemed to be use of com-mon area.

(b) The number of Guest cards which may beallocated to a participating facility in any agree-ment entered into pursuant to section 8.02 shallnot exceed twice the number of lots then withinThe Sea Ranch minus the number of Guestcards allocated and outstanding in favor ofother existing participating facilities.

(c) Any increase in the number of lots in TheSea Ranch by reason of the annexation ofproperty pursuant to section 2.02 or lot splittingpursuant to section 9.04, shall result in a likeincrease in the aggregate number of permissi-ble Guest cards. Grantor or the Association,whichever then has the right pursuant to para-graph (b) of section 8.02 to contract with a par-ticipating facility, may allocate such additionalGuest cards to existing participating facilitieswhich request such additional Guest cards.

Section 8.05. Use Fees; Default;Termination.

(a) Each participating facility shall pay to theAssociation for each fiscal year a use fee foreach Guest card allocated to it. Use fees forGuest cards allocated after the commencementof a fiscal year shall be appropriately prorated.Use fees shall be payable in monthly install-ments or in such other reasonable manner asthe Association may designate.

(b) The amount of the use fee for each Guestcard shall be that established in the agreementbetween such participating facility and Grantoror the Association; provided, however, that suchamount may, in the discretion of theAssociation, be adjusted as follows:

(1) the Association may decrease theamount of the use fee upon such terms andconditions as it deems appropriate;

(2) the Association may increase the

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amount of the use fee each fiscal year indirect proportion to the increase, if any, inthe Cost of Living Index measured from theJanuary of the year in which such agree-ment was executed to the January immedi-ately preceding the commencement of suchfiscal year; or

(3) if the Association is not a party to theagreement, or, if the Association is a partyto the agreement and the agreement wasexecuted within a period ending five (5)years from the date and year first abovewritten, the Association may increase theamount of the use fee to an amount which,when multiplied by the number of Guestcards allocated to such participating facilityon the commencement of such fiscal year,bears the same relationship to the totalcosts incurred by the Association during thepreceding fiscal year to maintain and to op-erate the common area and public recre-ational facilities which the Guests of suchparticipating facility are permitted to use, asthe number of Guest cards allocated tosuch participating facility bears to the sumof the number of lots then within The SeaRanch and the total number of Guest cardsallocated to participating facilities whoseGuests are permitted to use such commonarea and public recreational facilities. Anydispute with respect to the proper amountof any increase hereunder shall be submit-ted to arbitration as follows. The Associa-tion and the participating facility shall eachappoint an arbitrator and the two so chosenshall appoint a third. Within thirty (30) daysafter the appointment of the third arbitrator,the three arbitrators shall determine theproper increase, if any, in the amount of theuse fee. Such determination shall be con-clusive and binding upon the Associationand the participating facility involved.

(c) If a participating facility does not pay anyuse fee or installment thereof when due, itshall be deemed to be in default. Upon thecontinuation of any default for two (2) or moresuccessive months, the Board may terminatethe agreement to which the default relates.

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Section 8.06. Use Privileges; Condition; Revocation.

After a participating facility and Grantor orthe Association, as the case may be, haveentered into an agreement pursuant to sec-tion 8.02 and prior to the termination ofsuch agreement, the Guests of such partici-pating facility, not to exceed the number ofGuest cards allocated to such participatingfacility, shall have the privilege to use thecommon area and public recreational facil-ities designated in such agreement, sub-ject to all of the limitations and restrictions

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of section 3.05, section 3.06 and The SeaRanch Rules; provided, however, that suchprivilege shall be abated during the periodof any default pursuant to paragraph (c) ofsection 8.05; and provided further, that non-compliance by any Guest with the limita-tions and restrictions of section 3.05, sec-tion 3.06 and The Sea Ranch Rules shallautomatically revoke such Guest’s privilegeto use such common area and public recre-ational facilities.

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Article IX. Miscellaneous Provisions.

Section 9.01.Amendment or Repeal; Duration.

(a) In addition to the rights reserved to Grantorpursuant to section 2.02 to modify or supple-ment The Sea Ranch Restrictions with respectto property annexed to The Sea Ranch, andunless specifically provided to the contraryherein, The Sea Ranch Restrictions, or anypart thereof, as from time to time in effect withrespect to all or any part of The Sea Ranch,and any limitation, restriction, covenant or con-dition thereof, may, at any time with the writtenconsent of Grantor, or at any time from andafter five (5) years from the date and year firstabove written without the consent of Grantor,be amended or repealed upon the happeningof the following events:

(1) the vote or written consent of Ownersowning not less than three-fourths (3/4) ofthe lots within The Sea Ranch, approvingthe proposed amendment or amendmentsto The Sea Ranch Restrictions; and

(2) the recordation of a certificate of theSecretary or an Assistant Secretary of theAssociation setting forth in full the amend-ment or amendments to The Sea RanchRestrictions so approved, including any por-tion or portions thereof repealed, and certi-fying that said amendment or amendmentshave been approved by Owners owning notless than three-fourths (3/4) of the lots with-in The Sea Ranch.

(b) All of the limitations, restrictions, covenantsand conditions of The Sea Ranch Restrictionsshall continue and remain in full force and ef-fect at all times with respect to all property,and each part thereof, included within The SeaRanch, to the Owners and to the Association,subject, however, to the right to amend and ter-minate as provided for in paragraph (a) above,for a period of twenty-one (21) years followingthe death of the survivor of all the living de-scendants of Lyndon B. Johnson, President

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of the United States, but not beyond the year2000 A.D.; provided, however, that unless with-in one (1) year prior to the expiration of saidtwenty-one (21) year period or prior to Decem-ber 31, 1999, whichever occurs first, there shallbe recorded an instrument directing the termi-nation of The Sea Ranch Restrictions signed byOwners of not less than two-thirds (2/3) of thelots within The Sea Ranch, The Sea Ranch Re-strictions in effect immediately prior to the expi-ration date shall, subject to the provisions ofparagraph (a) above, be continued automatical-ly, without any further notice, for an additionalperiod of ten (10) years and thereafter for suc-cessive periods of ten (10) years unless withinone (1) year prior to the expiration of any suchperiod The Sea Ranch Restrictions are termi-nated as set forth above in this paragraph (b).

Section 9.02. Enforcement; Non-Waiver

(a) Except to the extent otherwise expresslyprovided herein, the Association or any Owneror Owners shall have the right to enforce anyand all of the limitations, restrictions, covenants,conditions, obligations, liens and charges nowor hereafter imposed by The Sea Ranch Re-strictions upon other Owners, or upon any prop-erty within The Sea Ranch.

(b) Except to the extent otherwise expresslyprovided herein, any Owner or Owners shallhave the right to enforce any and all limitations,restrictions, covenants, conditions and obliga-tions now or hereafter imposed by The SeaRanch Restrictions upon the Association.

(c) Every act or omission whereby any re-striction, condition or covenant of The Sea Ranch Restrictions is violated in whole or inpart is hereby declared to be and to constitutea nuisance and may be enjoined or abated,whether or not the relief sought is for negativeor affirmative action, by the Association or byan Owner or Owners, as provided for in para-graphs (a) and (b) above; provided, however,that any provision to the contrary notwithstand-ing, only the Association or its duly authorizedagents may enforce by self-help any limitation,restriction, covenant, condition or obligationherein set forth.

(d) Each remedy provided for in The SeaRanch Restrictions is cumulative and notexclusive.

(e) The failure to enforce the provisions of anylimitation, restriction, covenant, condition, obli-gation, lien or charge of The Sea Ranch Re-strictions shall not constitute a waiver of anyright to enforce any such provision or any otherprovision of The Sea Ranch Restrictions.

Section 9.03. Construction; Compliance with Laws; Severability; Singular and Plural; Titles.

(a) All of the limitations, restrictions, covenants,and conditions of The Sea Ranch Restrictionsshall be liberally construed, together, to pro-mote and effectuate the fundamental conceptsof The Sea Ranch, as set forth in the introduc-tory paragraphs of this declaration.

(b) No provision of The Sea Ranch Restrictionsshall be construed to excuse any person fromobserving any law or regulation of any govern-mental body having jurisdiction over such per-son or The Sea Ranch or any part thereof.

(c) Notwithstanding the provisions of para-graph (a) above, the limitations, restrictions,covenants and conditions of The Sea RanchRestrictions shall be deemed independent andseverable, and the invalidity or partial invalidityof any provision, or portion thereof, of any ofsuch limitations, restrictions, covenants or con-ditions shall not affect the validity or enforce-ability of any other provision.

(d) The singular shall include the plural and theplural the singular unless the context requiresthe contrary, and the masculine, feminine andneuter shall each include the masculine, femi-nine or neuter, as the context requires.

(e) All titles used in The Sea Ranch Restrictionsincluding those of articles and sections, areintended solely for convenience of referenceand the same shall not nor shall any of themaffect that which is set forth in such articles,sections, nor any of the terms or provisionsof The Sea Ranch Restrictions.

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Section 9.04. Lot Splitting; Consolidation.

(a) No lot within The Sea Ranch of less thantwo (2) acres shall be split. No other lot withinThe Sea Ranch shall be split unless the mini-mum area of each resulting lot is one (1) acre,or if the lot splitting is for a project, the ratio ofcondominiums to acres within the resulting proj-ect area does not exceed eight (8) to one (1),and unless there is filed with respect to the lotbeing split a subdivision map on which at leasttwo (2) of the three (3) members of the DesignCommittee shall have endorsed their consentand the Secretary or any Assistant Secretaryof the Association shall have endorsed the con-sent of the Association.

(b) No two (2) or more lots within The SeaRanch shall be consolidated into one (1) lotunless there is filed with respect to the lots be-ing consolidated a subdivision map on which atleast two (2) of the three (3) members of theDesign Committee shall have endorsed theirconsent and the Secretary or any AssistantSecretary of the Association shall have en-dorsed the consent of the Association.

(c) Nothing contained in paragraph (a) or (b) above shall apply to the splitting of any lot byGrantor or the consolidation of two or more lotsinto one (1) lot by Grantor.

Section 9.05. Conveyance of Common Area and Restricted Common Area;Reservation of Easements and Rights of Way; Reclassification of Land Area.

(a) Grantor shall transfer and convey to theAssociation and the Association shall accept,the fee interest to all of the real property desig-nated on a subdivision map as “Common Area”and “Restricted Common Area.” Such real prop-erty may be subject to any or all of the followingexceptions, liens and encumbrances:

(1) the lien of real property taxes andassessments not delinquent;

(2) such easements and rights of way on,over or under all or any part thereof as maybe reserved to Grantor or granted to any

Owner or participating facility for the usethereof in accordance with the provisionsof The Sea Ranch Restrictions;

(3) such easements and rights of way on,over or under all or any part thereof as maybe reserved to Grantor for access to realproperty contiguous to common area orrestricted common area;

(4) such easements and rights of way on,over or under all or any part thereof as maybe reserved to Grantor or granted to or forthe benefit of the United States of America,the State of California, or the County ofSonoma, any other political subdivision orpublic organization, any public utility corpo-ration, any participating facility, any project,or any lot, for the purpose of constructing,erecting, operating and maintaining there-on, therein and thereunder, at that time orat any time in the future:

(aa) roads, streets, walks, driveways,parkways and park areas,

(bb) poles, wires and conduits for thetransmission of electricity for lighting,heating, power, telephone, television andother purposes and for the necessaryattachments in connection therewith, and

(cc) public and private sewers, sewagedisposal systems, storm water drains,land drains and pipes, water systems,sprinkling systems, water, heating andgas lines or pipes and any and all equip-ment in connection therewith;

(5) the obligations imposed, directly or in-directly, by virtue of any statute, law, ordi-nance, resolution or regulation of the UnitedStates of America, the State of Californiaor any other political subdivision or publicorganization having jurisdiction over suchproperty, or by virtue of any organization orbody politic created pursuant to any suchstatute, law, ordinance or regulation;

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6) the rights reserved to Grantor pursuantto paragraph (f) of section 3.07; and

(7) any other lien, encumbrance or defect oftitle of any kind whatsoever (other than ofthe type which would at any time or fromtime to time create a lien upon such proper-ty to secure an obligation to pay money)which would not materially and actuallyprejudice the Owners and Guests in theiruse and enjoyment of such property.

(b) The land classification of any real propertywithin The Sea Ranch which is neither com-mon area nor restricted common area may bechanged to common area or restricted commonarea by the transfer of such property to the As-sociation from all persons having any right, titleor interest therein. The Association shall acceptsuch property and shall file a subdivision mapwith respect thereto designating the same ei-ther “Common Area” or “Restricted CommonArea,” as it may elect. Such property shallthereupon become common area or restrictedcommon area in accordance with such designa-tion. Notwithstanding the foregoing, Grantormay change the land classification of any suchproperty as to which it is the Owner by filing asubdivision map designating such propertyeither “Common Area” or “Restricted CommonArea,” as Grantor may elect. Grantor shall con-vey such property to the Association which shallaccept the same, and such property shall there-upon become common area or restricted com-mon area, as the case may be.

Section 9.06. Assignment of Powers.

Any and all of the rights and powers vestedin Grantor pursuant to The Sea Ranch Re-strictions may be delegated, transferred,assigned, conveyed or released by Grantorto the Association, and the Association shallaccept the same, effective upon the record-ing by the Grantor of a notice of such dele-gation, transfer, assignment, conveyance orrelease.

Section 9.07. Condemnation of CommonArea and Restricted Common Area.

If at any time, or from time to time, all or anyportion of common area or restricted com-mon area, or any interest therein, be takenfor any public or quasi-public use, underany statute, by right of eminent domain orby private purchase in lieu of eminent do-main, the entire award in condemnationshall be paid to the Association and deposit-ed into either the operating fund or thedevelopment fund as the Association may,in its sole discretion, determine. No Ownershall be entitled to any portion of suchaward and no Owner shall be entitled to par-ticipate as a party, or otherwise, in any pro-ceedings relating to such condemnation,such right of participation being herein re-served exclusively to the Association whichshall, in its name alone, represent the inter-ests of all Owners; provided, however, thatthe portion of any award relating to im-provements which constitute a privaterecreation facility shall be divided equallyamong the Owners who, at the time of suchtaking, are permitted users of such facility.

Section 9.08. Obligations of Owners; Avoidance; Termination.

(a) No Owner, through his nonuse of any com-mon area, restricted common area, project areaor recreational facility, or by abandonment ofhis lot, may avoid the burdens or obligations im-posed on him by The Sea Ranch Restrictionsby virtue of his being an Owner.

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(b) Upon the conveyance, sale, assignment orother transfer of a lot to a new Owner, thetransferring Owner shall not be liable for anyassessments levied with respect to such lotafter the date of such transfer, and no person,after the termination of his status as an Ownerand prior to his again becoming an Owner, shallincur any of the obligations or enjoy any of thebenefits of an Owner under The Sea Ranch Re-strictions following the date of such termination.

Section 9.09. Notices; Documents; Delivery.

Any notice or other document permitted orrequired by The Sea Ranch Restrictions tobe delivered may be delivered either person-ally or by mail. If delivery is made by mail, itshall be deemed to have been deliveredtwenty-four (24) hours after a copy of samehas been deposited in the United Statesmail, postage prepaid, addressed as fol-lows: if to the Association or to the DesignCommittee, at The Sea Ranch, SonomaCounty, California; if to an Owner, then atany lot within The Sea Ranch owned by theOwner; if to The Sea Ranch, 975 AnnapolisRoad, The Sea Ranch, California 95497; pro-vided, however, that any such address maybe changed from time to time by any Owner,by the Design Committee, or by notice inwriting; delivered to the Association, or bythe Association, by notice in writing deliv-ered to all Owners.